[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3539 Enrolled Bill (ENR)]

        H.R.3539

                       One Hundred Fourth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
   the third day of January, one thousand nine hundred and ninety-six


                                 An Act


 
 To amend title 49, United States Code, to reauthorize programs of the 
        Federal Aviation Administration, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal Aviation 
Reauthorization Act of 1996''.
    (b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Amendments to title 49, United States Code.
Sec. 3. Applicability.

                TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS

               Subtitle A--Reauthorization of FAA Programs

Sec. 101. Airport improvement program.
Sec. 102. Airway facilities improvement program.
Sec. 103. FAA operations.

                Subtitle B--Airport Development Financing

Sec. 121. Apportionments.
Sec. 122. Discretionary fund.
Sec. 123. Use of apportioned amounts.
Sec. 124. Designating current and former military airports.
Sec. 125. Period of applicability of amendments.

          Subtitle C--Airport Improvement Program Modifications

Sec. 141. Intermodal planning.
Sec. 142. Pavement maintenance program.
Sec. 143. Access to airports by intercity buses.
Sec. 144. Cost reimbursement for projects commenced prior to grant 
          award.
Sec. 145. Selection of projects for grants from discretionary fund.
Sec. 146. Small airport fund.
Sec. 147. State block grant program.
Sec. 148. Innovative financing techniques.
Sec. 149. Pilot program on private ownership of airports.

                          TITLE II--FAA REFORM

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

                     Subtitle A--General Provisions

Sec. 221. Findings.
Sec. 222. Purposes.
Sec. 223. Regulation of civilian air transportation and related services 
          by the Federal Aviation Administration and Department of 
          Transportation.
Sec. 224. Regulations.
Sec. 225. Personnel and services.
Sec. 226. Contracts.
Sec. 227. Facilities.
Sec. 228. Property.
Sec. 229. Transfers of funds from other Federal agencies.
Sec. 230. Management Advisory Council.

    Subtitle B--Federal Aviation Administration Streamlining Programs

Sec. 251. Review of acquisition management system.
Sec. 252. Air traffic control modernization reviews.
Sec. 253. Federal Aviation Administration personnel management system.
Sec. 254. Conforming amendment.

   Subtitle C--System To Fund Certain Federal Aviation Administration 
                                Functions

Sec. 271. Findings.
Sec. 272. Purposes.
Sec. 273. User fees for various Federal Aviation Administration 
          services.
Sec. 274. Independent assessment of FAA financial requirements; 
          establishment of National Civil Aviation Review Commission.
Sec. 275. Procedure for consideration of certain funding proposals.
Sec. 276. Administrative provisions.
Sec. 277. Advance appropriations for Airport and Airway Trust Fund 
          activities.
Sec. 278. Rural Air Service Survival Act.

                      TITLE III--AVIATION SECURITY

Sec. 301. Report including proposed legislation on funding for airport 
          security.
Sec. 302. Certification of screening companies.
Sec. 303. Weapons and explosive detection study.
Sec. 304. Requirement for criminal history records checks.
Sec. 305. Interim deployment of commercially available explosive 
          detection equipment.
Sec. 306. Audit of performance of background checks for certain 
          personnel.
Sec. 307. Passenger profiling.
Sec. 308. Authority to use certain funds for airport security programs 
          and activities.
Sec. 309. Development of aviation security liaison agreement.
Sec. 310. Regular joint threat assessments.
Sec. 311. Baggage match report.
Sec. 312. Enhanced security programs.
Sec. 313. Report on air cargo.
Sec. 314. Sense of the Senate regarding acts of international terrorism.

                        TITLE IV--AVIATION SAFETY

Sec. 401. Elimination of dual mandate.
Sec. 402. Protection of voluntarily submitted information.
Sec. 403. Supplemental type certificates.
Sec. 404. Certification of small airports.
Sec. 405. Authorization for State-specific safety measures.
Sec. 406. Aircraft engine standards.
Sec. 407.  Accident and safety data classification; report on effects of 
          publication and automated surveillance targeting systems.

                      TITLE V--PILOT RECORD SHARING

Sec. 501. Short title.
Sec. 502. Employment investigations of pilot applicants.
Sec. 503. Studies of minimum standards for pilot qualifications and of 
          pay for training.
Sec. 504. Study of minimum flight time.

                      TITLE VI--CHILD PILOT SAFETY

Sec. 601. Short title.
Sec. 602. Child pilot safety.

                      TITLE VII--FAMILY ASSISTANCE

Sec. 701. Short title.
Sec. 702. Assistance by National Transportation Safety Board to families 
          of passengers involved in aircraft accidents.
Sec. 703. Air carrier plans to address needs of families of passengers 
          involved in aircraft accidents.
Sec. 704. Establishment of task force.
Sec. 705. Limitation on statutory construction.

                 TITLE VIII--AIRPORT REVENUE PROTECTION

Sec. 801. Short title.
Sec. 802. Findings; purpose.
Sec. 803. Definitions.
Sec. 804. Restriction on use of airport revenues.
Sec. 805. Regulations; audits and accountability.
Sec. 806. Conforming amendments to the Internal Revenue Code of 1986.

               TITLE IX--METROPOLITAN WASHINGTON AIRPORTS

Sec. 901. Short title.
Sec. 902. Use of leased property.
Sec. 903. Board of Directors.
Sec. 904. Termination of Board of Review.
Sec. 905. Limitations.
Sec. 906. Use of Dulles Airport Access Highway.
Sec. 907. Effect of judicial order.
Sec. 908. Amendment of lease.
Sec. 909. Sense of the Senate.

    TITLE X--EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURES

Sec. 1001. Extension of Airport and Airway Trust Fund expenditures.

          TITLE XI--FAA RESEARCH, ENGINEERING, AND DEVELOPMENT

Sec. 1101. Short title.
Sec. 1102. Authorization of appropriations.
Sec. 1103. Research priorities.
Sec. 1104. Research advisory committee.
Sec. 1105. National aviation research plan.

                   TITLE XII--MISCELLANEOUS PROVISIONS

Sec. 1201. Purchase of housing units.
Sec. 1202. Clarification of passenger facility revenues as constituting 
          trust funds.
Sec. 1203. Authority to close airport located near closed or realigned 
          military base.
Sec. 1204. Gadsden Air Depot, Alabama.
Sec. 1205. Regulations affecting intrastate aviation in Alaska.
Sec. 1206. Westchester County Airport, New York.
Sec. 1207. Bedford Airport, Pennsylvania.
Sec. 1208. Worcester Municipal Airport, Massachusetts.
Sec. 1209. Central Florida Airport, Sanford, Florida.
Sec. 1210. Aircraft Noise Ombudsman.
Sec. 1211. Special rule for privately owned reliever airports.
Sec. 1212. Sense of the Senate regarding the funding of the Federal 
          Aviation Administration.
Sec. 1213. Rural air fare study.
Sec. 1214. Carriage of candidates in State and local elections.
Sec. 1215. Special flight rules in the vicinity of Grand Canyon National 
          Park.
Sec. 1216. Transfer of air traffic control tower; closing of flight 
          service stations.
Sec. 1217. Location of Doppler radar stations, New York.
Sec. 1218. Train whistle requirements.
Sec. 1219. Increased fees.
Sec. 1220. Structures interfering with air commerce.
Sec. 1221. Hawaii cargo.
Sec. 1222. Limitation on authority of States to regulate gambling 
          devices on vessels.
Sec. 1223. Clarifying amendment.

SEC. 2. AMENDMENTS TO TITLE 49, UNITED STATES CODE.

    Except as otherwise specifically provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision of law, the reference shall be 
considered to be made to a section or other provision of title 49, 
United States Code.

SEC. 3. APPLICABILITY.

    (a) In General.--Except as otherwise specifically provided, this 
Act and the amendments made by this Act apply only to fiscal years 
beginning after September 30, 1996.
    (b) Limitation on Statutory Construction.--Nothing in this Act or 
any amendment made by this Act shall be construed as affecting funds 
made available for a fiscal year ending before October 1, 1996.

                TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS
              Subtitle A--Reauthorization of FAA Programs

SEC. 101. AIRPORT IMPROVEMENT PROGRAM.

    (a) Authorization of Appropriations.--Section 48103 is amended--
        (1) by striking ``September 30, 1981'' and inserting 
    ``September 30, 1996''; and
        (2) by striking ``$17,583,500,000'' and all that follows 
    through the period at the end and inserting the following: 
    ``$2,280,000,000 for fiscal years ending before October 1, 1997, 
    and $4,627,000,000 for fiscal years ending before October 1, 
    1998.''.
    (b) Obligational Authority.--Section 47104(c) is amended by 
striking ``1996'' and inserting ``1998''.

SEC. 102. AIRWAY FACILITIES IMPROVEMENT PROGRAM.

    (a) Authorization of Appropriations.--Section 48101(a) is amended 
by striking paragraphs (1) through (4) and inserting the following:
        ``(1) $2,068,000,000 for fiscal year 1997.
        ``(2) $2,129,000,000 for fiscal year 1998.''.
    (b) Clerical Amendments.--Chapter 481 is amended--
        (1) by striking the heading for section 48101 and inserting the 
    following:

``Sec. 48101. Air navigation facilities and equipment''; and

        (2) in the table of sections by striking the item relating to 
    section 48101 and inserting the following:
``48101. Air navigation facilities and equipment.''.

SEC. 103. FAA OPERATIONS.

    (a) Authorization of Appropriations From General Fund.--Section 
106(k) is amended by striking ``$4,088,000,000'' and all that follows 
through the period at the end and inserting the following: 
``$5,158,000,000 for fiscal year 1997 and $5,344,000,000 for fiscal 
year 1998.''.
    (b) Authorization of Appropriations From Trust Fund.--Section 
48104(c) is amended--
        (1) in the subsection heading by striking ``1996'' and 
    inserting ``1998'';
        (2) in the matter preceding paragraph (1) by striking ``1994, 
    1995, and 1996'' and inserting ``1994 through 1998''; and
        (3) in paragraph (2)(A) by striking ``70 percent'' and 
    inserting ``72.5 percent''.
    (c) Limitation on Obligating or Expending Amounts.--Section 
48108(c) is amended by striking ``1996'' and inserting ``1998''.
    (d) Clerical Amendments.--Chapter 481 is amended--
        (1) by striking the heading for section 48104 and inserting the 
    following:

``Sec. 48104. Operations and maintenance''; and

        (2) in the table of sections by striking the item relating to 
    section 48104 and inserting the following:
``48104. Operations and maintenance.''.

               Subtitle B--Airport Development Financing

SEC. 121. APPORTIONMENTS.

    (a) Amounts Apportioned to Sponsors.--
        (1) Primary airports.--Section 47114(c)(1)(A) is amended--
            (A) by striking ``and'' at the end of clause (iii);
            (B) in clause (iv) by striking ``additional passenger 
        boarding'' and inserting ``of the next 500,000 passenger 
        boardings'';
            (C) by striking the period at the end of clause (iv) and 
        inserting ``; and''; and
            (D) by adding at the end the following:
        ``(v) $.50 for each additional passenger boarding at the 
    airport during the prior calendar year.''.
        (2) Cargo only airports.--Section 47114(c)(2) of such title is 
    amended to read as follows:
        ``(2) Cargo only airports.--
            ``(A) Apportionment.--Subject to subparagraph (D), the 
        Secretary shall apportion an amount equal to 2.5 percent of the 
        amount subject to apportionment each fiscal year to the 
        sponsors of airports served by aircraft providing air 
        transportation of only cargo with a total annual landed weight 
        of more than 100,000,000 pounds.
            ``(B) Suballocation formula.--Any funds apportioned under 
        subparagraph (A) to sponsors of airports described in 
        subparagraph (A) shall be allocated among those airports in the 
        proportion that the total annual landed weight of aircraft 
        described in subparagraph (A) landing at each of those airports 
        bears to the total annual landed weight of those aircraft 
        landing at all those airports.
            ``(C) Limitation.--Not more than 8 percent of the amount 
        apportioned under subparagraph (A) may be apportioned for any 
        one airport.
            ``(D) Distribution to other airports.--Before apportioning 
        amounts to the sponsors of airports under subparagraph (A) for 
        a fiscal year, the Secretary may set-aside a portion of such 
        amounts for distribution to the sponsors of other airports, 
        selected by the Secretary, that the Secretary finds will be 
        served primarily by aircraft providing air transportation of 
        only cargo.
            ``(E) Determination of landed weight.--Landed weight under 
        this paragraph is the landed weight of aircraft landing at each 
        airport described in subparagraph (A) during the prior calendar 
        year.''.
        (3) Repeal of limitation.--Section 47114(c)(3) is repealed.
    (b) Amounts Apportioned to States.--Section 47114(d)(2) of such 
title is amended--
        (1) by striking ``12'' and inserting ``18.5'';
        (2) in subparagraph (A) by striking ``one'' and inserting 
    ``0.66'';
        (3) in each of subparagraphs (B) and (C) by striking ``49.5'' 
    and inserting ``49.67''; and
        (4) in each of subparagraphs (B) and (C) by striking ``except'' 
    the second place it appears and all that follows through ``title,'' 
    and inserting ``excluding primary airports but including reliever 
    and nonprimary commercial service airports,''.

SEC. 122. DISCRETIONARY FUND.

    Section 47115 is amended by striking the second subsection (f), 
relating to minimum amounts to be credited, and inserting the 
following:
    ``(g) Minimum Amount To Be Credited.--
        ``(1) General rule.--In a fiscal year, there shall be credited 
    to the fund, out of amounts made available under section 48103 of 
    this title, an amount that is at least equal to the sum of--
            ``(A) $148,000,000; plus
            ``(B) the total amount required from the fund to carry out 
        in the fiscal year letters of intent issued before January 1, 
        1996, under section 47110(e) of this title or the Airport and 
        Airway Improvement Act of 1982.
    The amount credited is exclusive of amounts that have been 
    apportioned in a prior fiscal year under section 47114 of this 
    title and that remain available for obligation.
        ``(2) Reduction of apportionments.--In a fiscal year in which 
    the amount credited under subsection (a) is less than the minimum 
    amount to be credited under paragraph (1), the total amount 
    calculated under paragraph (3) shall be reduced by an amount that, 
    when credited to the fund, together with the amount credited under 
    subsection (a), equals such minimum amount.
        ``(3) Amount of reduction.--For a fiscal year, the total amount 
    available to make a reduction to carry out paragraph (2) is the 
    total of the amounts determined under sections 47114(c)(1)(A), 
    47114(c)(2), 47114(d), and 47117(e) of this title. Each amount 
    shall be reduced by an equal percentage to achieve the reduction.
        ``(4) Special rule.--For a fiscal year in which the amount 
    credited to the fund under this subsection exceeds $300,000,000, 
    the Secretary shall allocate the amount of such excess as follows:
            ``(A) \1/3\ shall be made available to airports for which 
        apportionments are made under section 47114(d) of this title.
            ``(B) \1/3\ shall be made available for airport noise 
        compatibility planning under section 47505(a)(2) of this title 
        and for carrying out noise compatibility programs under section 
        47504(c)(1) of this title.
            ``(C) \1/3\ shall be made available to current or former 
        military airports for which grants may be made under section 
        47117(e)(1)(B) of this title.''.

SEC. 123. USE OF APPORTIONED AMOUNTS.

    (a) Period of Availability.--Section 47117(b) is amended by 
inserting before the period at the end of the first sentence the 
following: ``or the 3 fiscal years immediately following that year in 
the case of a primary airport that had less than .05 percent of the 
total boardings in the United States in the preceding calendar year''.
    (b) Special Apportionment Categories.--Section 47117(e)(1) is 
amended--
        (1) by striking ``made available under section 48103'' and 
    inserting ``available to the discretionary fund under section 
    47115'';
        (2) by striking subparagraphs (A), (C), and (D);
        (3) by redesignating subparagraphs (B) and (E) as subparagraphs 
    (A) and (B), respectively;
        (4) in subparagraph (A), as so redesignated, by striking ``at 
    least 12.5'' and inserting ``At least 31'';
        (5) by adding at the end of subparagraph (A), as so 
    redesignated, the following: ``The Secretary may count the amount 
    of grants made for such planning and programs with funds 
    apportioned under section 47114 in that fiscal year in determining 
    whether or not such 31 percent requirement is being met in that 
    fiscal year.'';
        (6) in subparagraph (B), as so redesignated, by striking ``at 
    least 2.25'' and all that follows through ``1996,'' and inserting 
    ``At least 4 percent for each fiscal year thereafter''; and
        (7) by inserting before the period at the end of subparagraph 
    (B), as so redesignated, the following: ``and to sponsors of 
    noncommercial service airports for grants for operational and 
    maintenance expenses at any such airport if the amount of such 
    grants to the sponsor of the airport does not exceed $30,000 in 
    that fiscal year, if the Secretary determines that the airport is 
    adversely affected by the closure or realignment of a military 
    base, and if the sponsor of the airport certifies that the airport 
    would otherwise close if the airport does not receive the grant''.
    (c) Conforming Amendments.--Section 47117(e) is amended--
        (1) by striking paragraph (2); and
        (2) by redesignating paragraph (3) as paragraph (2).

SEC. 124. DESIGNATING CURRENT AND FORMER MILITARY AIRPORTS.

    (a) General Requirements.--Section 47118(a) is amended to read as 
follows:
    ``(a) General Requirements.--The Secretary of Transportation shall 
designate current or former military airports for which grants may be 
made under section 47117(e)(1)(B) of this title. The maximum number of 
airports bearing such designation at any time is 12. The Secretary may 
only so designate an airport (other than an airport so designated 
before August 24, 1994) if--
        ``(1) the airport is a former military installation closed or 
    realigned under--
            ``(A) section 2687 of title 10;
            ``(B) section 201 of the Defense Authorization Amendments 
        and Base Closure and Realignment Act (10 U.S.C. 2687 note); or
            ``(C) section 2905 of the Defense Base Closure and 
        Realignment Act of 1990 (10 U.S.C. 2687 note); or
        ``(2) the Secretary finds that such grants would--
            ``(A) reduce delays at an airport with more than 20,000 
        hours of annual delays in commercial passenger aircraft 
        takeoffs and landings; or
            ``(B) enhance airport and air traffic control system 
        capacity in a metropolitan area or reduce current and projected 
        flight delays.''.
    (b) Additional Designation Periods.--Section 47118(d) is amended by 
striking ``designation.'' and inserting ``designation, and for 
subsequent 5-fiscal-year periods if the Secretary determines that the 
airport satisfies the designation criteria under subsection (a) at the 
beginning of each such subsequent 5-fiscal-year period.''.
    (c) Parking Lots, Fuel Farms, Utilities, and Hangars.--Section 
47118(f) is amended--
        (1) in the heading by striking ``and Utilities'' and inserting 
    ``Utilities, and Hangars'';
        (2) by striking ``for the fiscal years ending September 30, 
    1993-1996,'' and inserting ``for fiscal years beginning after 
    September 30, 1992,''; and
        (3) by striking ``and utilities'' and inserting ``utilities, 
    and hangars''.
    (d) 2-Year Extension.--Section 47117(e)(1)(B), as redesignated by 
section 123(b) of this Act, is amended by striking ``and 1996,'' and 
inserting ``1996, 1997, and 1998''.

SEC. 125. PERIOD OF APPLICABILITY OF AMENDMENTS.

    The amendments made by this subtitle shall cease to be effective on 
September 30, 1998. On and after such date, sections 47114, 47115, 
47117, and 47118 of title 49, United States Code, shall read as if such 
amendments had not been enacted.

         Subtitle C--Airport Improvement Program Modifications

SEC. 141. INTERMODAL PLANNING.

    Section 47101(g) is amended to read as follows:
    ``(g) Intermodal Planning.--To carry out the policy of subsection 
(a)(5) of this section, the Secretary of Transportation shall take each 
of the following actions:
        ``(1) Coordination in development of airport plans and 
    programs.--Cooperate with State and local officials in developing 
    airport plans and programs that are based on overall transportation 
    needs. The airport plans and programs shall be developed in 
    coordination with other transportation planning and considering 
    comprehensive long-range land-use plans and overall social, 
    economic, environmental, system performance, and energy 
    conservation objectives. The process of developing airport plans 
    and programs shall be continuing, cooperative, and comprehensive to 
    the degree appropriate to the complexity of the transportation 
    problems.
        ``(2) Goals for airport master and system plans.--Encourage 
    airport sponsors and State and local officials to develop airport 
    master plans and airport system plans that--
            ``(A) foster effective coordination between aviation 
        planning and metropolitan planning;
            ``(B) include an evaluation of aviation needs within the 
        context of multimodal planning; and
            ``(C) are integrated with metropolitan plans to ensure that 
        airport development proposals include adequate consideration of 
        land use and ground transportation access.
        ``(3) Representation of airport operators on mpo's.--Encourage 
    metropolitan planning organizations, particularly in areas with 
    populations greater than 200,000, to establish membership positions 
    for airport operators.''.

SEC. 142. PAVEMENT MAINTENANCE PROGRAM.

    (a) Pavement Maintenance.--Subchapter I of chapter 471 is amended 
by adding at the end the following:

``Sec. 47132. Pavement maintenance

    ``(a) In General.--The Administrator of the Federal Aviation 
Administration shall issue guidelines to carry out a pavement 
maintenance pilot project to preserve and extend the useful life of 
runways, taxiways, and aprons at airports for which apportionments are 
made under section 47114(d). The guidelines shall provide that the 
Administrator may designate not more than 10 projects. The guidelines 
shall provide criteria for the Administrator to use in choosing the 
projects. At least 2 such projects must be in States without a primary 
airport that had 0.25 percent or more of the total boardings in the 
United States in the preceding calendar year. In designating a project, 
the Administrator shall take into consideration geographical, 
climatological, and soil diversity.
    ``(b) Effective Date.--This section shall be effective beginning on 
the date of the enactment of this section and ending on September 30, 
1999.''.
    (b) Compliance With Federal Mandates.--
        (1) Use of aip grants.--Section 47102(3) is amended--
            (A) in subparagraph (E) by inserting ``or under section 
        40117'' before the period at the end; and
            (B) in subparagraph (F) by striking ``paid for by a grant 
        under this subchapter and''.
        (2) Use of passenger facility charges.--Section 40117(a)(3) is 
    amended--
            (A) by inserting ``and'' at the end of subparagraph (D);
            (B) by striking ``; and'' at the end of subparagraph (E) 
        and inserting a period; and
            (C) by striking subparagraph (F).
    (c) Conforming Amendment.--The table of sections for such 
subchapter is amended by inserting after the item relating to section 
47131 the following:
``47132. Pavement maintenance.''.

SEC. 143. ACCESS TO AIRPORTS BY INTERCITY BUSES.

    Section 47107(a) is amended--
        (1) by striking ``and'' at the end of paragraph (18);
        (2) by striking the period at the end of paragraph (19) and 
    inserting ``; and''; and
        (3) by adding at the end the following:
        ``(20) the airport owner or operator will permit, to the 
    maximum extent practicable, intercity buses or other modes of 
    transportation to have access to the airport, but the sponsor does 
    not have any obligation under this paragraph, or because of it, to 
    fund special facilities for intercity bus service or for other 
    modes of transportation.''.

SEC. 144. COST REIMBURSEMENT FOR PROJECTS COMMENCED PRIOR TO GRANT 
              AWARD.

    (a) Cost Reimbursement.--Section 47110(b)(2)(C) is amended to read 
as follows:
        ``(C) if the Government's share is paid only with amounts 
    apportioned under paragraphs (1) and (2) of section 47114(c) of 
    this title and if the cost is incurred--
            ``(i) after September 30, 1996;
            ``(ii) before a grant agreement is executed for the 
        project; and
            ``(iii) in accordance with an airport layout plan approved 
        by the Secretary and with all statutory and administrative 
        requirements that would have been applicable to the project if 
        the project had been carried out after the grant agreement had 
        been executed;''.
    (b) Use of Discretionary Funds.--Section 47110 is amended by adding 
at the end the following:
    ``(g) Use of Discretionary Funds.--A project for which cost 
reimbursement is provided under subsection (b)(2)(C) shall not receive 
priority consideration with respect to the use of discretionary funds 
made available under section 47115 of this title even if the amounts 
made available under paragraphs (1) and (2) of section 47114(c) are not 
sufficient to cover the Government's share of the cost of project.''.

SEC. 145. SELECTION OF PROJECTS FOR GRANTS FROM DISCRETIONARY FUND.

    (a) Selection of Projects for Grants.--Section 47115(d) is 
amended--
        (1) by striking ``; and'' at the end of paragraph (2) and 
    inserting the following: ``, including, in the case of a project at 
    a reliever airport, the number of operations projected to be 
    diverted from a primary airport to the reliever airport as a result 
    of the project, as well as the cost savings projected to be 
    realized by users of the local airport system;'';
        (2) by striking the period at the end of paragraph (3) and 
    inserting a semicolon; and
        (3) by adding at the end the following:
        ``(4) the airport improvement priorities of the States, and 
    regional offices of the Administration, to the extent such 
    priorities are not in conflict with paragraphs (1) and (2);
        ``(5) the projected growth in the number of passengers that 
    will be using the airport at which the project will be carried out; 
    and
        ``(6) any increase in the number of passenger boardings in the 
    preceding 12-month period at the airport at which the project will 
    be carried out, with priority consideration to be given to projects 
    at airports at which the number of passenger boardings increased by 
    at least 20 percent as compared to the number of passenger 
    boardings in the 12-month period preceding such period.''.
    (b) Priority for Letters of Intent.--Section 47115, as amended by 
section 122 of this Act, is further amended by adding at the end the 
following:
    ``(h) Priority for Letters of Intent.--In making grants in a fiscal 
year with funds made available under this section, the Secretary shall 
fulfill intentions to obligate under section 47110(e).''.

SEC. 146. SMALL AIRPORT FUND.

    Section 47116 is amended by adding at the end the following:
    ``(d) Priority Consideration for Certain Projects.--In making 
grants to sponsors described in subsection (b)(2), the Secretary shall 
give priority consideration to multi-year projects for construction of 
new runways that the Secretary finds are cost beneficial and would 
increase capacity in a region of the United States.''.

SEC. 147. STATE BLOCK GRANT PROGRAM.

    (a) Participating States.--Section 47128 is amended--
        (1) in subsection (a) by striking ``7 qualified States'' and 
    inserting ``8 qualified States for fiscal year 1997 and 9 qualified 
    States for each fiscal year thereafter'';
        (2) in subsection (b)(1)--
            (A) by striking ``(1)''; and
            (B) by redesignating subparagraphs (A) through (E) as 
        paragraphs (1) through (5), respectively; and
        (3) by striking subsection (b)(2).
    (b) Use of State Priority System.--Section 47128(c) is amended--
        (1) by striking ``(b)(1)(B) or (C)'' and inserting ``(b)(2) or 
    (b)(3)''; and
        (2) by adding at the end the following: ``In carrying out this 
    subsection, the Secretary shall permit a State to use the priority 
    system of the State if such system is not inconsistent with the 
    national priority system.''.
    (c) Repeal of Expiration Date.--
        (1) In general.--Section 47128 is amended--
            (A) by striking ``pilot'' in the section heading;
            (B) by striking ``pilot'' in subsection (a); and
            (C) by striking subsection (d).
        (2) Conforming amendment.--The table of sections for chapter 
    471 is amended by striking the item relating to section 47128 and 
    inserting the following:
``47128. State block grant program.''.

SEC. 148. INNOVATIVE FINANCING TECHNIQUES.

    (a) In General.--The Secretary of Transportation is authorized to 
carry out a demonstration program under which the Secretary may approve 
applications under subchapter I of chapter 471 of title 49, United 
States Code, for not more than 10 projects for which grants received 
under such subchapter may be used to implement innovative financing 
techniques.
    (b) Purpose.--The purpose of the demonstration program shall be to 
provide information on the use of innovative financing techniques for 
airport development projects to Congress and the National Civil 
Aviation Review Commission.
    (c) Limitation.--In no case shall the implementation of an 
innovative financing technique under the demonstration program result 
in a direct or indirect guarantee of any airport debt instrument by the 
Federal Government.
    (d) Innovative Financing Technique Defined.--In this section, the 
term ``innovative financing technique'' shall be limited to the 
following:
        (1) Payment of interest.
        (2) Commercial bond insurance and other credit enhancement 
    associated with airport bonds for eligible airport development.
        (3) Flexible non-Federal matching requirements.
    (e) Expiration of Authority.--The authority of the Secretary to 
carry out the demonstration program shall expire on September 30, 1998.

SEC. 149. PILOT PROGRAM ON PRIVATE OWNERSHIP OF AIRPORTS.

    (a) Establishment of Program.--
        (1) In general.--Subchapter I of chapter 471, as amended by 
    section 804 of this Act, is further amended by adding after section 
    47133 the following:

``Sec. 47134. Pilot program on private ownership of airports

    ``(a) Submission of Applications.--If a sponsor intends to sell or 
lease a general aviation airport or lease any other type of airport for 
a long term to a person (other than a public agency), the sponsor and 
purchaser or lessee may apply to the Secretary of Transportation for 
exemptions under this section.
    ``(b) Approval of Applications.--The Secretary may approve, with 
respect to not more than 5 airports, applications submitted under 
subsection (a) granting exemptions from the following provisions:
        ``(1) Use of revenues.--
            ``(A) In general.--The Secretary may grant an exemption to 
        a sponsor from the provisions of sections 47107(b) and 47133 of 
        this title (and any other law, regulation, or grant assurance) 
        to the extent necessary to permit the sponsor to recover from 
        the sale or lease of the airport such amount as may be 
        approved--
                ``(i) by at least 65 percent of the air carriers 
            serving the airport; and
                ``(ii) by air carriers whose aircraft landing at the 
            airport during the preceding calendar year had a total 
            landed weight during the preceding calendar year of at 
            least 65 percent of the total landed weight of all aircraft 
            landing at the airport during such year.
            ``(B) Landed weight defined.--In this paragraph, the term 
        `landed weight' means the weight of aircraft transporting 
        passengers or cargo, or both, in intrastate, interstate, and 
        foreign air transportation, as the Secretary determines under 
        regulations the Secretary prescribes.
        ``(2) Repayment requirements.--The Secretary may grant an 
    exemption to a sponsor from the provisions of sections 47107 and 
    47152 of this title (and any other law, regulation, or grant 
    assurance) to the extent necessary to waive any obligation of the 
    sponsor to repay to the Federal Government any grants, or to return 
    to the Federal Government any property, received by the airport 
    under this title, the Airport and Airway Improvement Act of 1982, 
    or any other law.
        ``(3) Compensation from airport operations.--The Secretary may 
    grant an exemption to a purchaser or lessee from the provisions of 
    sections 47107(b) and 47133 of this title (and any other law, 
    regulation, or grant assurance) to the extent necessary to permit 
    the purchaser or lessee to earn compensation from the operations of 
    the airport.
    ``(c) Terms and Conditions.--The Secretary may approve an 
application under subsection (b) only if the Secretary finds that the 
sale or lease agreement includes provisions satisfactory to the 
Secretary to ensure the following:
        ``(1) The airport will continue to be available for public use 
    on reasonable terms and conditions and without unjust 
    discrimination.
        ``(2) The operation of the airport will not be interrupted in 
    the event that the purchaser or lessee becomes insolvent or seeks 
    or becomes subject to any State or Federal bankruptcy, 
    reorganization, insolvency, liquidation, or dissolution proceeding 
    or any petition or similar law seeking the dissolution or 
    reorganization of the purchaser or lessee or the appointment of a 
    receiver, trustee, custodian, or liquidator for the purchaser or 
    lessee or a substantial part of the purchaser or lessee's property, 
    assets, or business.
        ``(3) The purchaser or lessee will maintain, improve, and 
    modernize the facilities of the airport through capital investments 
    and will submit to the Secretary a plan for carrying out such 
    maintenance, improvements, and modernization.
        ``(4) Every fee of the airport imposed on an air carrier on the 
    day before the date of the lease of the airport will not increase 
    faster than the rate of inflation unless a higher amount is 
    approved--
            ``(A) by at least 65 percent of the air carriers serving 
        the airport; and
            ``(B) by air carriers whose aircraft landing at the airport 
        during the preceding calendar year had a total landed weight 
        during the preceding calendar year of at least 65 percent of 
        the total landed weight of all aircraft landing at the airport 
        during such year.
        ``(5) The percentage increase in fees imposed on general 
    aviation aircraft at the airport will not exceed the percentage 
    increase in fees imposed on air carriers at the airport.
        ``(6) Safety and security at the airport will be maintained at 
    the highest possible levels.
        ``(7) The adverse effects of noise from operations at the 
    airport will be mitigated to the same extent as at a public 
    airport.
        ``(8) Any adverse effects on the environment from airport 
    operations will be mitigated to the same extent as at a public 
    airport.
        ``(9) Any collective bargaining agreement that covers employees 
    of the airport and is in effect on the date of the sale or lease of 
    the airport will not be abrogated by the sale or lease.
    ``(d) Participation of Certain Airports.--
        ``(1) General aviation airports.--If the Secretary approves 
    under subsection (b) applications with respect to 5 airports, one 
    of the airports must be a general aviation airport.
        ``(2) Large hub airports.--The Secretary may not approve under 
    subsection (b) more than 1 application submitted by an airport that 
    had 1 percent or more of the total passenger boardings (as defined 
    in section 47102) in the United States in the preceding calendar 
    year.
    ``(e) Required Finding That Approval Will Not Result in Unfair 
Methods of Competition.--The Secretary may approve an application under 
subsection (b) only if the Secretary finds that the approval will not 
result in unfair and deceptive practices or unfair methods of 
competition.
    ``(f) Interests of General Aviation Users.--In approving an 
application of an airport under this section, the Secretary shall 
ensure that the interests of general aviation users of the airport are 
not adversely affected.
    ``(g) Passenger Facility Fees; Apportionments; Service Charges.--
Notwithstanding that the sponsor of an airport receiving an exemption 
under subsection (b) is not a public agency, the sponsor shall not be 
prohibited from--
        ``(1) imposing a passenger facility fee under section 40117 of 
    this title;
        ``(2) receiving apportionments under section 47114 of this 
    title; or
        ``(3) collecting reasonable rental charges, landing fees, and 
    other service charges from aircraft operators under section 
    40116(e)(2) of this title.
    ``(h) Effectiveness of Exemptions.--An exemption granted under 
subsection (b) shall continue in effect only so long as the facilities 
sold or leased continue to be used for airport purposes.
    ``(i) Revocation of Exemptions.--The Secretary may revoke an 
exemption issued to a purchaser or lessee of an airport under 
subsection (b)(3) if, after providing the purchaser or lessee with 
notice and an opportunity to be heard, the Secretary determines that 
the purchaser or lessee has knowingly violated any of the terms 
specified in subsection (c) for the sale or lease of the airport.
    ``(j) Nonapplication of Provisions to Airports Owned by Public 
Agencies.--The provisions of this section requiring the approval of air 
carriers in determinations concerning the use of revenues, and 
imposition of fees, at an airport shall not be extended so as to apply 
to any airport owned by a public agency that is not participating in 
the program established by this section.
    ``(k) Audits.--The Secretary may conduct periodic audits of the 
financial records and operations of an airport receiving an exemption 
under this section.
    ``(l) Report.--Not later than 2 years after the date of the initial 
approval of an application under this section, the Secretary shall 
transmit to the Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on implementation of the program 
under this section.
    ``(m) General Aviation Airport Defined.--In this section, the term 
`general aviation airport' means an airport that is not a commercial 
service airport.''.
        (2) Conforming amendment.--The table of sections for such 
    chapter is amended by inserting after the item relating to section 
    47133, as added by section 804 of this Act, the following:
``47134. Pilot program on private ownership of airports.''.

    (b) Taxation.--Section 40116(b) is amended--
        (1) by striking ``a State or'' and inserting ``a State, a''; 
    and
        (2) by inserting after ``of a State'' the following: ``, and 
    any person that has purchased or leased an airport under section 
    47134 of this title''.
    (c) Federal Share.--Section 47109(a) is amended--
        (1) by striking ``and'' at the end of paragraph (1);
        (2) by striking the period at the end of paragraph (2) and 
    inserting ``; and''; and
        (3) by adding at the end the following:
        ``(3) 40 percent for a project funded by the Administrator from 
    the discretionary fund under section 47115 at an airport receiving 
    an exemption under section 47134.''.
    (d) Resolution of Airport-Air Carrier Disputes Concerning Airport 
Fees.--Section 47129(a) is amended by adding at the end the following:
        ``(4) Fees imposed by privately-owned airports.--In evaluating 
    the reasonableness of a fee imposed by an airport receiving an 
    exemption under section 47134 of this title, the Secretary shall 
    consider whether the airport has complied with section 
    47134(c)(4).''.

                          TITLE II--FAA REFORM

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Air Traffic Management System 
Performance Improvement Act of 1996''.

SEC. 202. DEFINITIONS.

    In this title, the following definitions apply:
        (1) Administration.--The term ``Administration'' means the 
    Federal Aviation Administration.
        (2) Administrator.--The term ``Administrator'' means the 
    Administrator of the Federal Aviation Administration.
        (3) Secretary.--The term ``Secretary'' means the Secretary of 
    Transportation.

SEC. 203. EFFECTIVE DATE.

    The provisions of this title and the amendments made by this title 
shall take effect on the date that is 30 days after the date of the 
enactment of this Act.

                     Subtitle A--General Provisions

SEC. 221. FINDINGS.

    Congress finds the following:
        (1) In many respects the Administration is a unique agency, 
    being one of the few non-defense government agencies that operates 
    24 hours a day, 365 days of the year, while continuing to rely on 
    outdated technology to carry out its responsibilities for a state-
    of-the-art industry.
        (2) Until January 1, 1996, users of the air transportation 
    system paid 70 percent of the budget of the Administration, with 
    the remaining 30 percent coming from the General Fund. The General 
    Fund contribution over the years is one measure of the benefit 
    received by the general public, military, and other users of 
    Administration's services.
        (3) The Administration must become a more efficient, effective, 
    and different organization to meet future challenges.
        (4) The need to balance the Federal budget means that it may 
    become more and more difficult to obtain sufficient General Fund 
    contributions to meet the Administration's future budget needs.
        (5) Congress must keep its commitment to the users of the 
    national air transportation system by seeking to spend all moneys 
    collected from them each year and deposited into the Airport and 
    Airway Trust Fund. Existing surpluses representing past receipts 
    must also be spent for the purposes for which such funds were 
    collected.
        (6) The aviation community and the employees of the 
    Administration must come together to improve the system. The 
    Administration must continue to recognize who its customers are and 
    what their needs are, and to design and redesign the system to make 
    safety improvements and increase productivity.
        (7) The Administration projects that commercial operations will 
    increase by 18 percent and passenger traffic by 35 percent by the 
    year 2002. Without effective airport expansion and system 
    modernization, these needs cannot be met.
        (8) Absent significant and meaningful reform, future challenges 
    and needs cannot be met.
        (9) The Administration must have a new way of doing business.
        (10) There is widespread agreement within government and the 
    aviation industry that reform of the Administration is essential to 
    safely and efficiently accommodate the projected growth of aviation 
    within the next decade.
        (11) To the extent that Congress determines that certain 
    segments of the aviation community are not required to pay all of 
    the costs of the government services which they require and 
    benefits which they receive, Congress should appropriate the 
    difference between such costs and any receipts received from such 
    segment.
        (12) Prior to the imposition of any new charges or user fees on 
    segments of the industry, an independent review must be performed 
    to assess the funding needs and assumptions for operations, capital 
    spending, and airport infrastructure.
        (13) An independent, thorough, and complete study and 
    assessment must be performed of the costs to the Administration and 
    the costs driven by each segment of the aviation system for safety 
    and operational services, including the use of the air traffic 
    control system and the Nation's airports.
        (14) Because the Administration is a unique Federal entity in 
    that it is a participant in the daily operations of an industry, 
    and because the national air transportation system faces 
    significant problems without significant changes, the 
    Administration has been authorized to change the Federal 
    procurement and personnel systems to ensure that the Administration 
    has the ability to keep pace with new technology and is able to 
    match resources with the real personnel needs of the 
    Administration.
        (15) The existing budget system does not allow for long-term 
    planning or timely acquisition of technology by the Administration.
        (16) Without reforms in the areas of procurement, personnel, 
    funding, and governance, the Administration will continue to 
    experience delays and cost overruns in its major modernization 
    programs and needed improvements in the performance of the air 
    traffic management system will not occur.
        (17) All reforms should be designed to help the Administration 
    become more responsive to the needs of its customers and maintain 
    the highest standards of safety.

SEC. 222. PURPOSES.

    The purposes of this title are--
        (1) to ensure that final action shall be taken on all notices 
    of proposed rulemaking of the Administration within 18 months after 
    the date of their publication;
        (2) to permit the Administration, with Congressional review, to 
    establish a program to improve air traffic management system 
    performance and to establish appropriate levels of cost 
    accountability for air traffic management services provided by the 
    Administration;
        (3) to establish a more autonomous and accountable 
    Administration within the Department of Transportation; and
        (4) to make the Administration a more efficient and effective 
    organization, able to meet the needs of a dynamic, growing 
    industry, and to ensure the safety of the traveling public.

SEC. 223. REGULATION OF CIVILIAN AIR TRANSPORTATION AND RELATED 
              SERVICES BY THE FEDERAL AVIATION ADMINISTRATION AND 
              DEPARTMENT OF TRANSPORTATION.

    (a) In General.--Section 106 is amended--
        (1) by striking ``The Administrator'' in subsection (b) and 
    inserting ``Except as provided in subsection (f) or in other 
    provisions of law, the Administrator''; and
        (2) in subsection (f)--
            (A) by striking ``(f) The Secretary'' and inserting the 
        following:
    ``(f) Authority of the Secretary and the Administrator.--
        ``(1) Authority of the secretary.--Except as provided in 
    paragraph (2), the Secretary'';
            (B) in subsection (f)(1), as so designated--
                (i) by moving the remainder of the text 2 ems to the 
            right;
                (ii) by striking ``The Secretary may not'' and 
            inserting ``Neither the Secretary nor the Administrator 
            may''; and
                (iii) by striking ``nor'' and inserting ``or''; and
            (C) by adding at the end the following:
        ``(2) Authority of the administrator.--The Administrator--
            ``(A) is the final authority for carrying out all 
        functions, powers, and duties of the Administration relating 
        to--
                ``(i) the appointment and employment of all officers 
            and employees of the Administration (other than 
            Presidential and political appointees);
                ``(ii) the acquisition and maintenance of property and 
            equipment of the Administration;
                ``(iii) except as otherwise provided in paragraph (3), 
            the promulgation of regulations, rules, orders, circulars, 
            bulletins, and other official publications of the 
            Administration; and
                ``(iv) any obligation imposed on the Administrator, or 
            power conferred on the Administrator, by the Air Traffic 
            Management System Performance Improvement Act of 1996 (or 
            any amendment made by that Act);
            ``(B) shall offer advice and counsel to the President with 
        respect to the appointment and qualifications of any officer or 
        employee of the Administration to be appointed by the President 
        or as a political appointee;
            ``(C) may delegate, and authorize successive redelegations 
        of, to an officer or employee of the Administration any 
        function, power, or duty conferred upon the Administrator, 
        unless such delegation is prohibited by law; and
            ``(D) except as otherwise provided for in this title, and 
        notwithstanding any other provision of law, shall not be 
        required to coordinate, submit for approval or concurrence, or 
        seek the advice or views of the Secretary or any other officer 
        or employee of the Department of Transportation on any matter 
        with respect to which the Administrator is the final authority.
        ``(3) Definition of political appointee.--For purposes of this 
    subsection, the term `political appointee' means any individual 
    who--
            ``(A) is employed in a position listed in sections 5312 
        through 5316 of title 5 (relating to the Executive Schedule);
            ``(B) is a limited term appointee, limited emergency 
        appointee, or noncareer appointee in the Senior Executive 
        Service, as defined under paragraphs (5), (6), and (7), 
        respectively, of section 3132(a) of title 5; or
            ``(C) is employed in a position in the executive branch of 
        the Government of a confidential or policy-determining 
        character under schedule C of subpart C of part 213 of title 5 
        of the Code of Federal Regulations.''.
    (b) Preservation of Existing Authority.--Nothing in this title or 
the amendments made by this title limits any authority granted to the 
Administrator by statute or by delegation that was in effect on the day 
before the date of the enactment of this Act.

SEC. 224. REGULATIONS.

    Section 106(f), as amended by section 223 of this Act, is further 
amended--
        (1) by redesignating paragraph (3) as paragraph (4); and
        (2) by inserting after paragraph (2) the following:
        ``(3) Regulations.--
            ``(A) In general.--In the performance of the functions of 
        the Administrator and the Administration, the Administrator is 
        authorized to issue, rescind, and revise such regulations as 
        are necessary to carry out those functions. The issuance of 
        such regulations shall be governed by the provisions of chapter 
        5 of title 5. The Administrator shall act upon all petitions 
        for rulemaking no later than 6 months after the date such 
        petitions are filed by dismissing such petitions, by informing 
        the petitioner of an intention to dismiss, or by issuing a 
        notice of proposed rulemaking or advanced notice of proposed 
        rulemaking. The Administrator shall issue a final regulation, 
        or take other final action, not later than 16 months after the 
        last day of the public comment period for the regulations or, 
        in the case of an advanced notice of proposed rulemaking, if 
        issued, not later than 24 months after the date of publication 
        in the Federal Register of notice of the proposed rulemaking.
            ``(B) Approval of secretary of transportation.--(i) The 
        Administrator may not issue a proposed regulation or final 
        regulation that is likely to result in the expenditure by 
        State, local, and tribal governments in the aggregate, or by 
        the private sector, of $100,000,000 or more (adjusted annually 
        for inflation beginning with the year following the date of the 
        enactment of the Air Traffic Management System Performance 
        Improvement Act of 1996) in any year, or any regulation which 
        is significant, unless the Secretary of Transportation approves 
        the issuance of the regulation in advance. For purposes of this 
        paragraph, a regulation is significant if the Administrator, in 
        consultation with the Secretary (as appropriate), determines 
        that the regulation is likely to--
                ``(I) have an annual effect on the economy of 
            $100,000,000 or more or adversely affect in a material way 
            the economy, a sector of the economy, productivity, 
            competition, jobs, the environment, public health or 
            safety, or State, local, or tribal governments or 
            communities;
                ``(II) create a serious inconsistency or otherwise 
            interfere with an action taken or planned by another 
            agency;
                ``(III) materially alter the budgetary impact of 
            entitlements, grants, user fees, or loan programs or the 
            rights and obligations of recipients thereof; or
                ``(IV) raise novel legal or policy issues arising out 
            of legal mandates.
            ``(ii) In an emergency, the Administrator may issue a 
        regulation described in clause (i) without prior approval by 
        the Secretary, but any such emergency regulation is subject to 
        ratification by the Secretary after it is issued and shall be 
        rescinded by the Administrator within 5 days (excluding 
        Saturdays, Sundays, and legal public holidays) after issuance 
        if the Secretary fails to ratify its issuance.
            ``(iii) Any regulation that does not meet the criteria of 
        clause (i), and any regulation or other action that is a 
        routine or frequent action or a procedural action, may be 
        issued by the Administrator without review or approval by the 
        Secretary.
            ``(iv) The Administrator shall submit a copy of any 
        regulation requiring approval by the Secretary under clause (i) 
        to the Secretary, who shall either approve it or return it to 
        the Administrator with comments within 45 days after receiving 
        it.
            ``(C) Periodic review.--(i) Beginning on the date which is 
        3 years after the date of the enactment of the Air Traffic 
        Management System Performance Improvement Act of 1996, the 
        Administrator shall review any unusually burdensome regulation 
        issued by the Administrator after such date of enactment 
        beginning not later than 3 years after the effective date of 
        the regulation to determine if the cost assumptions were 
        accurate, the benefit of the regulations, and the need to 
        continue such regulations in force in their present form.
            ``(ii) The Administrator may identify for review under the 
        criteria set forth in clause (i) unusually burdensome 
        regulations that were issued before the date of the enactment 
        of the Air Traffic Management System Performance Improvement 
        Act of 1996 and that have been in force for more than 3 years.
            ``(iii) For purposes of this subparagraph, the term 
        `unusually burdensome regulation' means any regulation that 
        results in the annual expenditure by State, local, and tribal 
        governments in the aggregate, or by the private sector, of 
        $25,000,000 or more (adjusted annually for inflation beginning 
        with the year following the date of the enactment of the Air 
        Traffic Management System Performance Act of 1996) in any year.
            ``(iv) The periodic review of regulations may be performed 
        by advisory committees and the Management Advisory Council 
        established under subsection (p).''.

SEC. 225. PERSONNEL AND SERVICES.

    Section 106 is amended by adding at the end the following:
    ``(l) Personnel and Services.--
        ``(1) Officers and employees.--Except as provided in section 
    40122(a) of this title and section 347 of Public Law 104-50, the 
    Administrator is authorized, in the performance of the functions of 
    the Administrator, to appoint, transfer, and fix the compensation 
    of such officers and employees, including attorneys, as may be 
    necessary to carry out the functions of the Administrator and the 
    Administration. In fixing compensation and benefits of officers and 
    employees, the Administrator shall not engage in any type of 
    bargaining, except to the extent provided for in section 40122(a), 
    nor shall the Administrator be bound by any requirement to 
    establish such compensation or benefits at particular levels.
        ``(2) Experts and consultants.--The Administrator is authorized 
    to obtain the services of experts and consultants in accordance 
    with section 3109 of title 5.
        ``(3) Transportation and per diem expenses.--The Administrator 
    is authorized to pay transportation expenses, and per diem in lieu 
    of subsistence expenses, in accordance with chapter 57 of title 5.
        ``(4) Use of personnel from other agencies.--The Administrator 
    is authorized to utilize the services of personnel of any other 
    Federal agency (as such term is defined under section 551(1) of 
    title 5).
        ``(5) Voluntary services.--
            ``(A) General rule.--In exercising the authority to accept 
        gifts and voluntary services under section 326 of this title, 
        and without regard to section 1342 of title 31, the 
        Administrator may not accept voluntary and uncompensated 
        services if such services are used to displace Federal 
        employees employed on a full-time, part-time, or seasonal 
        basis.
            ``(B) Incidental expenses.--The Administrator is authorized 
        to provide for incidental expenses, including transportation, 
        lodging, and subsistence, for volunteers who provide voluntary 
        services under this subsection.
            ``(C) Limited treatment as federal employees.--An 
        individual who provides voluntary services under this 
        subsection shall not be considered a Federal employee for any 
        purpose other than for purposes of chapter 81 of title 5, 
        relating to compensation for work injuries, and chapter 171 of 
        title 28, relating to tort claims.''.

SEC. 226. CONTRACTS.

    Section 106(l), as added by section 225 of this Act, is further 
amended by adding at the end the following:
        ``(6) Contracts.--The Administrator is authorized to enter into 
    and perform such contracts, leases, cooperative agreements, or 
    other transactions as may be necessary to carry out the functions 
    of the Administrator and the Administration. The Administrator may 
    enter into such contracts, leases, cooperative agreements, and 
    other transactions with any Federal agency (as such term is defined 
    in section 551(1) of title 5) or any instrumentality of the United 
    States, any State, territory, or possession, or political 
    subdivision thereof, any other governmental entity, or any person, 
    firm, association, corporation, or educational institution, on such 
    terms and conditions as the Administrator may consider 
    appropriate.''.

SEC. 227. FACILITIES.

    Section 106, as amended by section 225 of this Act, is further 
amended by adding at the end the following:
    ``(m) Cooperation by Administrator.--With the consent of 
appropriate officials, the Administrator may, with or without 
reimbursement, use or accept the services, equipment, personnel, and 
facilities of any other Federal agency (as such term is defined in 
section 551(1) of title 5) and any other public or private entity. The 
Administrator may also cooperate with appropriate officials of other 
public and private agencies and instrumentalities concerning the use of 
services, equipment, personnel, and facilities. The head of each 
Federal agency shall cooperate with the Administrator in making the 
services, equipment, personnel, and facilities of the Federal agency 
available to the Administrator. The head of a Federal agency is 
authorized, notwithstanding any other provision of law, to transfer to 
or to receive from the Administration, without reimbursement, supplies 
and equipment other than administrative supplies or equipment.''.

SEC. 228. PROPERTY.

    Section 106, as amended by section 227 of this Act, is further 
amended by adding at the end the following:
    ``(n) Acquisition.--
        ``(1) In general.--The Administrator is authorized--
            ``(A) to acquire (by purchase, lease, condemnation, or 
        otherwise), construct, improve, repair, operate, and maintain--
                ``(i) air traffic control facilities and equipment;
                ``(ii) research and testing sites and facilities; and
                ``(iii) such other real and personal property 
            (including office space and patents), or any interest 
            therein, within and outside the continental United States 
            as the Administrator considers necessary;
            ``(B) to lease to others such real and personal property; 
        and
            ``(C) to provide by contract or otherwise for eating 
        facilities and other necessary facilities for the welfare of 
        employees of the Administration at the installations of the 
        Administration, and to acquire, operate, and maintain equipment 
        for these facilities.
        ``(2) Title.--Title to any property or interest therein 
    acquired pursuant to this subsection shall be held by the 
    Government of the United States.''.

SEC. 229. TRANSFERS OF FUNDS FROM OTHER FEDERAL AGENCIES.

    Section 106, as amended by section 228 of this Act, is further 
amended by adding at the end the following:
    ``(o) Transfers of Funds.--The Administrator is authorized to 
accept transfers of unobligated balances and unexpended balances of 
funds appropriated to other Federal agencies (as such term is defined 
in section 551(1) of title 5) to carry out functions transferred by law 
to the Administrator or functions transferred pursuant to law to the 
Administrator on or after the date of the enactment of the Air Traffic 
Management System Performance Improvement Act of 1996.''.

SEC. 230. MANAGEMENT ADVISORY COUNCIL.

    Section 106, as amended by section 229 of this Act, is further 
amended by adding at the end the following:
    ``(p) Management Advisory Council.--
        ``(1) Establishment.--Within 3 months after the date of the 
    enactment of the Air Traffic Management System Performance 
    Improvement Act of 1996, the Administrator shall establish an 
    advisory council which shall be known as the Federal Aviation 
    Management Advisory Council (in this subsection referred to as the 
    `Council'). With respect to Administration management, policy, 
    spending, funding, and regulatory matters affecting the aviation 
    industry, the Council may submit comments, recommended 
    modifications, and dissenting views to the Administrator. The 
    Administrator shall include in any submission to Congress, the 
    Secretary, or the general public, and in any submission for 
    publication in the Federal Register, a description of the comments, 
    recommended modifications, and dissenting views received from the 
    Council, together with the reasons for any differences between the 
    views of the Council and the views or actions of the Administrator.
        ``(2) Membership.--The Council shall consist of 15 members, who 
    shall consist of--
            ``(A) a designee of the Secretary of Transportation;
            ``(B) a designee of the Secretary of Defense; and
            ``(C) 13 members representing aviation interests, appointed 
        by the President by and with the advice and consent of the 
        Senate.
        ``(3) Qualifications.--No member appointed under paragraph 
    (2)(C) may serve as an officer or employee of the United States 
    Government while serving as a member of the Council.
        ``(4) Functions.--
            ``(A) In general.--(i) The Council shall provide advice and 
        counsel to the Administrator on issues which affect or are 
        affected by the operations of the Administrator. The Council 
        shall function as an oversight resource for management, policy, 
        spending, and regulatory matters under the jurisdiction of the 
        Administration.
            ``(ii) The Council shall review the rulemaking cost-benefit 
        analysis process and develop recommendations to improve the 
        analysis and ensure that the public interest is fully 
        protected.
            ``(iii) The Council shall review the process through which 
        the Administration determines to use advisory circulars and 
        service bulletins.
            ``(B) Meetings.--The Council shall meet on a regular and 
        periodic basis or at the call of the chairman or of the 
        Administrator.
            ``(C) Access to documents and staff.--The Administration 
        may give the Council appropriate access to relevant documents 
        and personnel of the Administration, and the Administrator 
        shall make available, consistent with the authority to withhold 
        commercial and other proprietary information under section 552 
        of title 5 (commonly known as the `Freedom of Information 
        Act'), cost data associated with the acquisition and operation 
        of air traffic service systems. Any member of the Council who 
        receives commercial or other proprietary data from the 
        Administrator shall be subject to the provisions of section 
        1905 of title 18, pertaining to unauthorized disclosure of such 
        information.
        ``(5) Federal advisory committee act not to apply.--The Federal 
    Advisory Committee Act (5 U.S.C. App.) does not apply to the 
    Council or such aviation rulemaking committees as the Administrator 
    shall designate.
        ``(6) Administrative matters.--
            ``(A) Terms of members.--(i) Except as provided in 
        subparagraph (B), members of the Council appointed by the 
        President under paragraph (2)(C) shall be appointed for a term 
        of 3 years.
            ``(ii) Of the members first appointed by the President--
                ``(I) 4 shall be appointed for terms of 1 year;
                ``(II) 5 shall be appointed for terms of 2 years; and
                ``(III) 4 shall be appointed for terms of 3 years.
            ``(iii) An individual chosen to fill a vacancy shall be 
        appointed for the unexpired term of the member replaced.
            ``(iv) A member whose term expires shall continue to serve 
        until the date on which the member's successor takes office.
            ``(B) Chairman; vice chairman.--The Council shall elect a 
        chair and a vice chair from among the members appointed under 
        paragraph (2)(C), each of whom shall serve for a term of 1 
        year. The vice chair shall perform the duties of the chairman 
        in the absence of the chairman.
            ``(C) Travel and per diem.--Each member of the Council 
        shall be paid actual travel expenses, and per diem in lieu of 
        subsistence expenses when away from his or her usual place of 
        residence, in accordance with section 5703 of title 5.
            ``(D) Detail of personnel from the administration.--The 
        Administrator shall make available to the Council such staff, 
        information, and administrative services and assistance as may 
        reasonably be required to enable the Council to carry out its 
        responsibilities under this subsection.''.

   Subtitle B--Federal Aviation Administration Streamlining Programs

SEC. 251. REVIEW OF ACQUISITION MANAGEMENT SYSTEM.

    Not later than April 1, 1999, the Administrator shall employ 
outside experts to provide an independent evaluation of the 
effectiveness of the Administration's acquisition management system 
within 3 months after such date. The Administrator shall transmit a 
copy of the evaluation to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives.

SEC. 252. AIR TRAFFIC CONTROL MODERNIZATION REVIEWS.

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

``Sec. 40121. Air traffic control modernization reviews

    ``(a) Required Terminations of Acquisitions.--The Administrator of 
the Federal Aviation Administration shall terminate any acquisition 
program initiated after the date of the enactment of the Air Traffic 
Management System Performance Improvement Act of 1996 and funded under 
the Facilities and Equipment account that--
        ``(1) is more than 50 percent over the cost goal established 
    for the program;
        ``(2) fails to achieve at least 50 percent of the performance 
    goals established for the program; or
        ``(3) is more than 50 percent behind schedule as determined in 
    accordance with the schedule goal established for the program.
    ``(b) Authorized Termination of Acquisition Programs.--The 
Administrator shall consider terminating, under the authority of 
subsection (a), any substantial acquisition program that--
        ``(1) is more than 10 percent over the cost goal established 
    for the program;
        ``(2) fails to achieve at least 90 percent of the performance 
    goals established for the program; or
        ``(3) is more than 10 percent behind schedule as determined in 
    accordance with the schedule goal established for the program.
    ``(c) Exceptions and Report.--
        ``(1) Continuance of program, etc.--Notwithstanding subsection 
    (a), the Administrator may continue an acquisitions program 
    required to be terminated under subsection (a) if the Administrator 
    determines that termination would be inconsistent with the 
    development or operation of the national air transportation system 
    in a safe and efficient manner.
        ``(2) Department of defense.--The Department of Defense shall 
    have the same exemptions from acquisition laws as are waived by the 
    Administrator under section 348(b) of Public Law 104-50 when 
    engaged in joint actions to improve or replenish the national air 
    traffic control system. The Administration may acquire real 
    property, goods, and services through the Department of Defense, or 
    other appropriate agencies, but is bound by the acquisition laws 
    and regulations governing those cases.
        ``(3) Report.--If the Administrator makes a determination under 
    paragraph (1), the Administrator shall transmit a copy of the 
    determination, together with a statement of the basis for the 
    determination, to the Committees on Appropriations of the Senate 
    and the House of Representatives, the Committee on Commerce, 
    Science, and Transportation of the Senate, and the Committee on 
    Transportation and Infrastructure of the House of 
    Representatives.''.

SEC. 253. FEDERAL AVIATION ADMINISTRATION PERSONNEL MANAGEMENT SYSTEM.

    Chapter 401, as amended by section 252 of this Act, is further 
amended by adding at the end the following:

``Sec. 40122. Federal Aviation Administration personnel management 
            system

    ``(a) In General.--
        ``(1) Consultation and negotiation.--In developing and making 
    changes to the personnel management system initially implemented by 
    the Administrator of the Federal Aviation Administration on April 
    1, 1996, the Administrator shall negotiate with the exclusive 
    bargaining representatives of employees of the Administration 
    certified under section 7111 of title 5 and consult with other 
    employees of the Administration.
        ``(2) Mediation.--If the Administrator does not reach an 
    agreement under paragraph (1) with the exclusive bargaining 
    representatives, the services of the Federal Mediation and 
    Conciliation Service shall be used to attempt to reach such 
    agreement. If the services of the Federal Mediation and 
    Conciliation Service do not lead to an agreement, the 
    Administrator's proposed change to the personnel management system 
    shall not take effect until 60 days have elapsed after the 
    Administrator has transmitted the proposed change, along with the 
    objections of the exclusive bargaining representatives to the 
    change, and the reasons for such objections, to Congress.
        ``(3) Cost savings and productivity goals.--The Administration 
    and the exclusive bargaining representatives of the employees shall 
    use every reasonable effort to find cost savings and to increase 
    productivity within each of the affected bargaining units.
        ``(4) Annual budget discussions.--The Administration and the 
    exclusive bargaining representatives of the employees shall meet 
    annually for the purpose of finding additional cost savings within 
    the Administration's annual budget as it applies to each of the 
    affected bargaining units and throughout the agency.
    ``(b) Expert Evaluation.--On the date that is 3 years after the 
personnel management system is implemented, the Administration shall 
employ outside experts to provide an independent evaluation of the 
effectiveness of the system within 3 months after such date. For this 
purpose, the Administrator may utilize the services of experts and 
consultants under section 3109 of title 5 without regard to the 
limitation imposed by the last sentence of section 3109(b) of such 
title, and may contract on a sole source basis, notwithstanding any 
other provision of law to the contrary.
    ``(c) Pay Restriction.--No officer or employee of the 
Administration may receive an annual rate of basic pay in excess of the 
annual rate of basic pay payable to the Administrator.
    ``(d) Ethics.--The Administration shall be subject to Executive 
Order No. 12674 and regulations and opinions promulgated by the Office 
of Government Ethics, including those set forth in section 2635 of 
title 5 of the Code of Federal Regulations.
    ``(e) Employee Protections.--Until July 1, 1999, basic wages 
(including locality pay) and operational differential pay provided 
employees of the Administration shall not be involuntarily adversely 
affected by reason of the enactment of this section, except for 
unacceptable performance or by reason of a reduction in force or 
reorganization or by agreement between the Administration and the 
affected employees' exclusive bargaining representative.
    ``(f) Labor-Management Agreements.--Except as otherwise provided by 
this title, all labor-management agreements covering employees of the 
Administration that are in effect on the effective date of the Air 
Traffic Management System Performance Improvement Act of 1996 shall 
remain in effect until their normal expiration date, unless the 
Administrator and the exclusive bargaining representative agree to the 
contrary.''.

SEC. 254. CONFORMING AMENDMENT.

    The table of sections for chapter 401 is amended by adding at the 
end the following:
``40121. Air traffic control modernization reviews.
``40122. Federal Aviation Administration personnel management system.''.

  Subtitle C--System To Fund Certain Federal Aviation Administration 
                               Functions

SEC. 271. FINDINGS.

    Congress finds the following:
        (1) The Administration is recognized throughout the world as a 
    leader in aviation safety.
        (2) The Administration certifies aircraft, engines, propellers, 
    and other manufactured parts.
        (3) The Administration certifies more than 650 training schools 
    for pilots and nonpilots, more than 4,858 repair stations, and more 
    than 193 maintenance schools.
        (4) The Administration certifies pilot examiners, who are then 
    qualified to determine if a person has the skills necessary to 
    become a pilot.
        (5) The Administration certifies more than 6,000 medical 
    examiners, each of whom is then qualified to medically certify the 
    qualifications of pilots and nonpilots.
        (6) The Administration certifies more than 470 airports, and 
    provides a limited certification for another 205 airports. Other 
    airports in the United States are also reviewed by the 
    Administration.
        (7) The Administration each year performs more than 355,000 
    inspections.
        (8) The Administration issues more than 655,000 pilot's 
    licenses and more than 560,000 nonpilot's licenses (including 
    mechanics).
        (9) The Administration's certification means that the product 
    meets world-wide recognized standards of safety and reliability.
        (10) The Administration's certification means aviation-related 
    equipment and services meet world-wide recognized standards.
        (11) The Administration's certification is recognized by 
    governments and businesses throughout the world and as such may be 
    a valuable element for any company desiring to sell aviation-
    related products throughout the world.
        (12) The Administration's certification may constitute a 
    valuable license, franchise, privilege or benefits for the holders.
        (13) The Administration also is a major purchaser of computers, 
    radars, and other systems needed to run the air traffic control 
    system. The Administration's design, acceptance, commissioning, or 
    certification of such equipment enables the private sector to 
    market those products around the world, and as such confers a 
    benefit on the manufacturer.
        (14) The Administration provides extensive services to public 
    use aircraft.

SEC. 272. PURPOSES.

    The purposes of this subtitle are--
        (1) to provide a financial structure for the Administration so 
    that it will be able to support the future growth in the national 
    aviation and airport system;
        (2) to review existing and alternative funding options, 
    including incentive-based fees for services, and establish a 
    program to improve air traffic management system performance and to 
    establish appropriate levels of cost accountability for air traffic 
    management services provided by the Administration;
        (3) to ensure that any funding will be dedicated solely for the 
    use of the Administration;
        (4) to authorize the Administration to recover the costs of its 
    services from those who benefit from, but do not contribute to, the 
    national aviation system and the services provided by the 
    Administration;
        (5) to consider a fee system based on the cost or value of the 
    services provided and other funding alternatives;
        (6) to develop funding options for Congress in order to provide 
    for the long-term efficient and cost-effective support of the 
    Administration and the aviation system; and
        (7) to achieve a more efficient and effective Administration 
    for the benefit of the aviation transportation industry.

SEC. 273. USER FEES FOR VARIOUS FEDERAL AVIATION ADMINISTRATION 
              SERVICES.

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

``Sec. 45301. General provisions

    ``(a) Schedule of Fees.--The Administrator shall establish a 
schedule of new fees, and a collection process for such fees, for the 
following services provided by the Administration:
        ``(1) Air traffic control and related services provided to 
    aircraft other than military and civilian aircraft of the United 
    States government or of a foreign government that neither take off 
    from, nor land in, the United States.
        ``(2) Services (other than air traffic control services) 
    provided to a foreign government.
    ``(b) Limitations.--
        ``(1) Authorization and impact considerations.--In establishing 
    fees under subsection (a), the Administrator--
            ``(A) is authorized to recover in fiscal year 1997 
        $100,000,000; and
            ``(B) shall ensure that each of the fees required by 
        subsection (a) is directly related to the Administration's 
        costs of providing the service rendered. Services for which 
        costs may be recovered include the costs of air traffic 
        control, navigation, weather services, training and emergency 
        services which are available to facilitate safe transportation 
        over the United States, and other services provided by the 
        Administrator or by programs financed by the Administrator to 
        flights that neither take off nor land in the United States.
        ``(2) Publication; comment.--The Administrator shall publish in 
    the Federal Register an initial fee schedule and associated 
    collection process as an interim final rule, pursuant to which 
    public comment will be sought and a final rule issued.
    ``(c) Use of Experts and Consultants.--In developing the system, 
the Administrator may consult with such nongovernmental experts as the 
Administrator may employ and the Administrator may utilize the services 
of experts and consultants under section 3109 of title 5 without regard 
to the limitation imposed by the last sentence of section 3109(b) of 
such title, and may contract on a sole source basis, notwithstanding 
any other provision of law to the contrary. Notwithstanding any other 
provision of law to the contrary, the Administrator may retain such 
experts under a contract awarded on a basis other than a competitive 
basis and without regard to any such provisions requiring competitive 
bidding or precluding sole source contract authority.''.
    (b) Conforming Amendment.--The table of sections for chapter 453 is 
amended by striking the item relating to section 45301 and inserting 
the following:
``45301. General provisions.''.

SEC. 274. INDEPENDENT ASSESSMENT OF FAA FINANCIAL REQUIREMENTS; 
              ESTABLISHMENT OF NATIONAL CIVIL AVIATION REVIEW 
              COMMISSION.

    (a) Independent Assessment.--
        (1) Initiation.--Not later than 30 days after the date of the 
    enactment of this Act, the Administrator shall contract with an 
    entity independent of the Administration and the Department of 
    Transportation to conduct a complete independent assessment of the 
    financial requirements of the Administration through the year 2002.
        (2) Assessment criteria.--The Administrator shall provide to 
    the independent entity estimates of the financial requirements of 
    the Administration for the period described in paragraph (1), using 
    as a base the fiscal year 1997 appropriation levels established by 
    Congress. The independent assessment shall be based on an objective 
    analysis of agency funding needs.
        (3) Certain factors to be taken into account.--The independent 
    assessment shall take into account all relevant factors, 
    including--
            (A) anticipated air traffic forecasts;
            (B) other workload measures;
            (C) estimated productivity gains, if any, which contribute 
        to budgetary requirements;
            (D) the need for programs; and
            (E) the need to provide for continued improvements in all 
        facets of aviation safety, along with operational improvements 
        in air traffic control.
        (4) Cost allocation.--The independent assessment shall also 
    assess the costs to the Administration occasioned by the provision 
    of services to each segment of the aviation system.
        (5) Deadline.--The independent assessment shall be completed no 
    later than 90 days after the contract is awarded, and shall be 
    submitted to the Commission established under subsection (b), the 
    Secretary, the Secretary of the Treasury, the Committee on 
    Commerce, Science, and Transportation and the Committee on Finance 
    of the Senate, and the Committee on Transportation and 
    Infrastructure and the Committee on Ways and Means of the House of 
    Representatives.
    (b) National Civil Aviation Review Commission.--
        (1) Establishment.--There is established a commission to be 
    known as the National Civil Aviation Review Commission (hereinafter 
    in this section referred to as the ``Commission'').
        (2) Membership.--The Commission shall consist of 21 members to 
    be appointed as follows:
            (A) 13 members to be appointed by the Secretary, in 
        consultation with the Secretary of the Treasury, from among 
        individuals who have expertise in the aviation industry and who 
        are able, collectively, to represent a balanced view of the 
        issues important to general aviation, major air carriers, air 
        cargo carriers, regional air carriers, business aviation, 
        airports, aircraft manufacturers, the financial community, 
        aviation industry workers, and airline passengers. At least one 
        member appointed under this subparagraph shall have detailed 
        knowledge of the congressional budgetary process.
            (B) Two members appointed by the Speaker of the House of 
        Representatives.
            (C) Two members appointed by the minority leader of the 
        House of Representatives.
            (D) Two members appointed by the majority leader of the 
        Senate.
            (E) Two members appointed by the minority leader of the 
        Senate.
        (3) Task forces.--The Commission shall establish an aviation 
    funding task force and an aviation safety task force to carry out 
    the responsibilities of the Commission under this subsection.
        (4) First meeting.--The Commission may conduct its first 
    meeting as soon as a majority of the members of the Commission are 
    appointed.
        (5) Hearings and consultation.--
            (A) Hearings.--The Commission shall take such testimony and 
        solicit and receive such comments from the public and other 
        interested parties as it considers appropriate, shall conduct 2 
        public hearings after affording adequate notice to the public 
        thereof, and may conduct such additional hearings as may be 
        necessary.
            (B) Consultation.--The Commission shall consult on a 
        regular and frequent basis with the Secretary, the Secretary of 
        the Treasury, the Committee on Commerce, Science, and 
        Transportation and the Committee on Finance of the Senate, and 
        the Committee on Transportation and Infrastructure and the 
        Committee on Ways and Means of the House of Representatives.
            (C) FACA not to apply.--The Commission shall not be 
        considered an advisory committee for purposes of the Federal 
        Advisory Committee Act (5 U.S.C. App.).
        (6) Duties of aviation funding task force.--
            (A) Report to secretary.--
                (i) In general.--The aviation funding task force 
            established pursuant to paragraph (3) shall submit a report 
            setting forth a comprehensive analysis of the 
            Administration's budgetary requirements through fiscal year 
            2002, based upon the independent assessment under 
            subsection (a), that analyzes alternative financing and 
            funding means for meeting the needs of the aviation system 
            through the year 2002. The task force shall submit a 
            preliminary report of that analysis to the Secretary not 
            later than 6 months after the independent assessment is 
            completed under subsection (a). The Secretary shall provide 
            comments on the preliminary report to the task force within 
            30 days after receiving the report. The task force shall 
            issue a final report of such comprehensive analysis within 
            30 days after receiving the Secretary's comments on its 
            preliminary report.
                (ii) Contents.--The report submitted by the aviation 
            funding task force under clause (i)--

                    (I) shall consider the independent assessment under 
                subsection (a);
                    (II) shall consider estimated cost savings, if any, 
                resulting from the procurement and personnel reforms 
                included in this Act or in sections 347 and 348 of 
                Public Law 104-50, and additional financial 
                initiatives;
                    (III) shall include specific recommendations to 
                Congress on how the Administration can reduce costs, 
                raise additional revenue for the support of agency 
                operations, and accelerate modernization efforts; and
                    (IV) shall include a draft bill containing the 
                changes in law necessary to implement its 
                recommendations.

            (B) Recommendations.--The aviation funding task force shall 
        make such recommendations under subparagraph (A)(ii)(III) as 
        the task force deems appropriate. Those recommendations may 
        include--
                (i) proposals for off-budget treatment of the Airport 
            and Airway Trust Fund;
                (ii) alternative financing and funding proposals, 
            including linked financing proposals;
                (iii) modifications to existing levels of Airport and 
            Airways Trust Fund receipts and taxes for each type of tax;
                (iv) establishment of a cost-based user fee system 
            based on, but not limited to, criteria under subparagraph 
            (F) and methods to ensure that costs are borne by users on 
            a fair and equitable basis;
                (v) methods to ensure that funds collected from the 
            aviation community are able to meet the needs of the 
            agency;
                (vi) methods to ensure that funds collected from the 
            aviation community and passengers are used to support the 
            aviation system;
                (vii) means of meeting the airport infrastructure needs 
            for large, medium, and small airports; and
                (viii) any other matter the task force deems 
            appropriate to address the funding and needs of the 
            Administration and the aviation system.
            (C) Additional recommendations.--The aviation funding task 
        force report may also make recommendations concerning--
                (i) means of improving productivity by expanding and 
            accelerating the use of automation and other technology;
                (ii) means of contracting out services consistent with 
            this Act, other applicable law, and safety and national 
            defense needs;
                (iii) methods to accelerate air traffic control 
            modernization and improvements in aviation safety and 
            safety services;
                (iv) the elimination of unneeded programs; and
                (v) a limited innovative program based on funding 
            mechanisms such as loan guarantees, financial partnerships 
            with for-profit private sector entities, government-
            sponsored enterprises, and revolving loan funds, as a means 
            of funding specific facilities and equipment projects, and 
            to provide limited additional funding alternatives for 
            airport capacity development.
            (D) Impact assessment for recommendations.--For each 
        recommendation contained in the aviation funding task force's 
        report, the report shall include a full analysis and assessment 
        of the impact implementation of the recommendation would have 
        on--
                (i) safety;
                (ii) administrative costs;
                (iii) the congressional budget process;
                (iv) the economics of the industry (including the 
            proportionate share of all users);
                (v) the ability of the Administration to utilize the 
            sums collected; and
                (vi) the funding needs of the Administration.
            (E) Trust fund tax recommendations.--If the task force's 
        report includes a recommendation that the existing Airport and 
        Airways Trust Fund tax structure be modified, the report 
        shall--
                (i) state the specific rates for each group affected by 
            the proposed modifications;
                (ii) consider the impact such modifications shall have 
            on specific users and the public (including passengers); 
            and
                (iii) state the basis for the recommendations.
            (F) Fee system recommendations.--If the task force's report 
        includes a recommendation that a fee system be established, 
        including an air traffic control performance-based user fee 
        system, the report shall consider--
                (i) the impact such a recommendation would have on 
            passengers, air fares (including low-fare, high frequency 
            service), service, and competition;
                (ii) existing contributions provided by individual air 
            carriers toward funding the Administration and the air 
            traffic control system through contributions to the Airport 
            and Airways Trust Fund;
                (iii) continuing the promotion of fair and competitive 
            practices;
                (iv) the unique circumstances associated with 
            interisland air carrier service in Hawaii and rural air 
            service in Alaska;
                (v) the impact such a recommendation would have on 
            service to small communities;
                (vi) the impact such a recommendation would have on 
            services provided by regional air carriers;
                (vii) alternative methodologies for calculating fees so 
            as to achieve a fair and reasonable distribution of costs 
            of service among users;
                (viii) the usefulness of phased-in approaches to 
            implementing such a financing system;
                (ix) means of assuring the provision of general fund 
            contributions, as appropriate, toward the support of the 
            Administration; and
                (x) the provision of incentives to encourage greater 
            efficiency in the provision of air traffic services by the 
            Administration and greater efficiency in the use of air 
            traffic services by aircraft operators.
        (7) Duties of aviation safety task force.--
            (A) Report to administrator.--Not later than 1 year after 
        the date of the enactment of this Act, the aviation safety task 
        force established pursuant to paragraph (3) shall submit to the 
        Administrator a report setting forth a comprehensive analysis 
        of aviation safety in the United States and emerging trends in 
        the safety of particular sectors of the aviation industry.
            (B) Contents.--The report to be submitted under 
        subparagraph (A) shall include an assessment of--
                (i) the adequacy of staffing and training resources for 
            safety personnel of the Administration, including safety 
            inspectors;
                (ii) the Administration's processes for ensuring the 
            public safety from fraudulent parts in civil aviation and 
            the extent to which use of suspected unapproved parts 
            requires additional oversight or enforcement action; and
                (iii) the ability of the Administration to anticipate 
            changes in the aviation industry and to develop policies 
            and actions to ensure the highest level of aviation safety 
            in the 21st century.
        (8) Access to documents and staff.--The Administration may give 
    the Commission appropriate access to relevant documents and 
    personnel of the Administration, and the Administrator shall make 
    available, consistent with the authority to withhold commercial and 
    other proprietary information under section 552 of title 5, United 
    States Code (commonly known as the ``Freedom of Information Act''), 
    cost data associated with the acquisition and operation of air 
    traffic service systems. Any member of the Commission who receives 
    commercial or other proprietary data from the Administrator shall 
    be subject to the provisions of section 1905 of title 18, United 
    States Code, pertaining to unauthorized disclosure of such 
    information.
        (9) Travel and per diem.--Each member of the Commission shall 
    be paid actual travel expenses, and per diem in lieu of subsistence 
    expenses when away from his or her usual place of residence, in 
    accordance with section 5703 of title 5, United States Code.
        (10) Detail of personnel from the administration.--The 
    Administrator shall make available to the Commission such staff, 
    information, and administrative services and assistance as may 
    reasonably be required to enable the Commission to carry out its 
    responsibilities under this subsection.
        (11) Authorization of appropriations.--There is authorized to 
    be appropriated such sums as may be necessary to carry out the 
    provisions of this subsection.
    (c) Reports to Congress.--
        (1) Report by the secretary based on final report of aviation 
    funding task force.--
            (A) Consideration of task force's preliminary report.--Not 
        later than 30 days after receiving the preliminary report of 
        the aviation funding task force, the Secretary, in consultation 
        with the Secretary of the Treasury, shall furnish comments on 
        the report to the task force.
            (B) Report to congress.--Not later than 30 days after 
        receiving the final report of the aviation funding task force, 
        and in no event more than 1 year after the date of the 
        enactment of this Act, the Secretary, after consulting the 
        Secretary of the Treasury, shall transmit a report to the 
        Committee on Commerce, Science, and Transportation and the 
        Committee on Finance of the Senate, and the Committee on 
        Transportation and Infrastructure and the Committee on Ways and 
        Means of the House of Representatives. Such report shall be 
        based upon the final report of the task force and shall contain 
        the Secretary's recommendations for funding the needs of the 
        aviation system through the year 2002.
            (C) Contents.--The Secretary shall include in the report to 
        Congress under subparagraph (B)--
                (i) a copy of the final report of the task force; and
                (ii) a draft bill containing the changes in law 
            necessary to implement the Secretary's recommendations.
            (D) Publication.--The Secretary shall cause a copy of the 
        report to be printed in the Federal Register upon its 
        transmittal to Congress under subparagraph (B).
        (2) Report by the administrator based on final report of 
    aviation safety task force.--Not later than 30 days after receiving 
    the report of the aviation safety task force, the Administrator 
    shall transmit the report to Congress, together with the 
    Administrator's recommendations for improving aviation safety in 
    the United States.
    (d) GAO Audit of Cost Allocation.--The Comptroller General shall 
conduct an assessment of the manner in which costs for air traffic 
control services are allocated between the Administration and the 
Department of Defense. The Comptroller General shall report the results 
of the assessment, together with any recommendations the Comptroller 
General may have for reallocation of costs and for opportunities to 
increase the efficiency of air traffic control services provided by the 
Administration and by the Department of Defense, to the Commission, the 
Administrator, the Secretary of Defense, the Committee on 
Transportation and Infrastructure of the House of Representatives, and 
the Committee on Commerce, Science, and Transportation of the Senate 
not later than 180 days after the date of the enactment of this Act.
    (e) GAO Assessment.--Not later than 180 days after the date of the 
enactment of this Act, the Comptroller General shall transmit to the 
Commission and Congress an independent assessment of airport 
development needs.

SEC. 275. PROCEDURE FOR CONSIDERATION OF CERTAIN FUNDING PROPOSALS.

    (a) In General.--Chapter 481 is amended by adding at the end the 
following:

``Sec. 48111. Funding proposals

    ``(a) Introduction in the Senate.--Within 15 days (not counting any 
day on which the Senate is not in session) after a funding proposal is 
submitted to the Senate by the Secretary of Transportation under 
section 274(c) of the Air Traffic Management System Performance 
Improvement Act of 1996, an implementing bill with respect to such 
funding proposal shall be introduced in the Senate by the majority 
leader of the Senate, for himself and the minority leader of the 
Senate, or by Members of the Senate designated by the majority leader 
and minority leader of the Senate.
    ``(b) Consideration in the Senate.--An implementing bill introduced 
in the Senate under subsection (a) shall be referred to the Committee 
on Commerce, Science, and Transportation. The Committee on Commerce, 
Science, and Transportation shall report the bill with its 
recommendations within 60 days following the date of introduction of 
the bill. Upon the reporting of the bill by the Committee on Commerce, 
Science, and Transportation, the reported bill shall be referred 
sequentially to the Committee on Finance for a period of 60 legislative 
days.
    ``(c) Definitions.--For purposes of this section, the following 
definitions apply:
        ``(1) Implementing bill.--The term `implementing bill' means 
    only a bill of the Senate which is introduced as provided in 
    subsection (a) with respect to one or more Federal Aviation 
    Administration funding proposals which contain changes in existing 
    laws or new statutory authority required to implement such funding 
    proposal or proposals.
        ``(2) Funding proposal.--The term `funding proposal' means a 
    proposal to provide interim or permanent funding for operations of 
    the Federal Aviation Administration.
    ``(d) Rules of the Senate.--The provisions of this section are 
enacted--
        ``(1) as an exercise of the rulemaking power of the Senate and 
    as such they are deemed a part of the rules of the Senate and they 
    supersede other rules only to the extent that they are inconsistent 
    therewith; and
        ``(2) with full recognition of the constitutional right of the 
    Senate to change the rules (so far as relating to the procedure of 
    the Senate) at any time, in the same manner and to the same extent 
    as in the case of any other rule of the Senate.''.
    (b) Clerical Amendment.--The table of sections for chapter 481 is 
amended by adding at the end thereof the following:
``48111. Funding proposals.''.

SEC. 276. ADMINISTRATIVE PROVISIONS.

    (a) In General.--Chapter 453 is amended--
        (1) by redesignating section 45303 as section 45304; and
        (2) by inserting after section 45302 the following:

``Sec. 45303. Administrative provisions

    ``(a) Fees Payable to Administrator.--All fees imposed and amounts 
collected under this chapter for services performed, or materials 
furnished, by the Federal Aviation Administration are payable to the 
Administrator of the Federal Aviation Administration.
    ``(b) Refunds.--The Administrator may refund any fee paid by 
mistake or any amount paid in excess of that required.
    ``(c) Receipts Credited to Account.--Notwithstanding section 3302 
of title 31, all fees and amounts collected by the Administration, 
except insurance premiums and other fees charged for the provision of 
insurance and deposited in the Aviation Insurance Revolving Fund and 
interest earned on investments of such Fund, and except amounts which 
on September 30, 1996, are required to be credited to the general fund 
of the Treasury (whether imposed under this section or not)--
        ``(1) shall be credited to a separate account established in 
    the Treasury and made available for Administration activities;
        ``(2) shall be available immediately for expenditure but only 
    for congressionally authorized and intended purposes; and
        ``(3) shall remain available until expended.
    ``(d) Annual Budget Report by Administrator.--The Administrator 
shall, on the same day each year as the President submits the annual 
budget to Congress, provide to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives--
        ``(1) a list of fee collections by the Administration during 
    the preceding fiscal year;
        ``(2) a list of activities by the Administration during the 
    preceding fiscal year that were supported by fee expenditures and 
    appropriations;
        ``(3) budget plans for significant programs, projects, and 
    activities of the Administration, including out-year funding 
    estimates;
        ``(4) any proposed disposition of surplus fees by the 
    Administration; and
        ``(5) such other information as those committees consider 
    necessary.
    ``(e) Development of Cost Accounting System.--The Administration 
shall develop a cost accounting system that adequately and accurately 
reflects the investments, operating and overhead costs, revenues, and 
other financial measurement and reporting aspects of its operations.
    ``(f) Compensation to Carriers for Acting as Collection Agents.--
The Administration shall prescribe regulations to ensure that any air 
carrier required, pursuant to the Air Traffic Management System 
Performance Improvement Act of 1996 or any amendments made by that Act, 
to collect a fee imposed on another party by the Administrator may 
collect from such other party an additional uniform amount that the 
Administrator determines reflects the necessary and reasonable expenses 
(net of interest accruing to the carrier after collection and before 
remittance) incurred in collecting and handling the fee.''.
    (b) Conforming Amendment.--The table of sections for chapter 453 is 
amended by striking the item relating to section 45303 and inserting 
the following:
``45303. Administrative provisions.
``45304. Maximum fees for private person services.''.

SEC. 277. ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY TRUST FUND 
              ACTIVITIES.

    (a) In General.--Part C of subtitle VII is amended by adding at the 
end the following:

  ``CHAPTER 482--ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY TRUST 
                               FACILITIES

``Sec.
``48201. Advance appropriations.

``Sec. 48201. Advance appropriations

    ``(a) Multiyear Authorizations.--Beginning with fiscal year 1999, 
any authorization of appropriations for an activity for which amounts 
are to be appropriated from the Airport and Airway Trust Fund 
established under section 9502 of the Internal Revenue Code of 1986 
shall provide funds for a period of not less than 3 fiscal years unless 
the activity for which appropriations are authorized is to be concluded 
before the end of that period.
    ``(b) Multiyear Appropriations.--Beginning with fiscal year 1999, 
amounts appropriated from the Airport and Airway Trust Fund shall be 
appropriated for periods of 3 fiscal years rather than annually.''.
    (b) Conforming Amendment.--The analysis for subtitle VII is amended 
by inserting after the item relating to chapter 481 the following:

``482. ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY TRUST 
FACILITIES.....................................................48201.''.

SEC. 278. RURAL AIR SERVICE SURVIVAL ACT.

    (a) Short Title.--This section may be cited as the ``Rural Air 
Service Survival Act''.
    (b) Findings.--Congress finds that--
        (1) air service in rural areas is essential to a national and 
    international transportation network;
        (2) the rural air service infrastructure supports the safe 
    operation of all air travel;
        (3) rural air service creates economic benefits for all air 
    carriers by making the national aviation system available to 
    passengers from rural areas;
        (4) rural air service has suffered since deregulation;
        (5) the essential air service program under the Department of 
    Transportation--
            (A) provides essential airline access to rural and isolated 
        rural communities throughout the Nation;
            (B) is necessary for the economic growth and development of 
        rural communities;
            (C) is a critical component of the national and 
        international transportation system of the United States; and
            (D) has endured serious funding cuts in recent years; and
        (6) a reliable source of funding must be established to 
    maintain air service in rural areas and the essential air service 
    program.
    (c) Essential Air Service Authorization.--Section 41742 is amended 
to read as follows:

``Sec. 41742. Essential air service authorization

    ``(a) In General.--Out of the amounts received by the Federal 
Aviation Administration credited to the account established under 
section 45303 of this title or otherwise provided to the 
Administration, the sum of $50,000,000 is authorized and shall be made 
available immediately for obligation and expenditure to carry out the 
essential air service program under this subchapter for each fiscal 
year.
    ``(b) Funding for Small Community Air Service.--Notwithstanding any 
other provision of law, moneys credited to the account established 
under section 45303(a) of this title, including the funds derived from 
fees imposed under the authority contained in section 45301(a) of this 
title, shall be used to carry out the essential air service program 
under this subchapter. Notwithstanding section 47114(g) of this title, 
any amounts from those fees that are not obligated or expended at the 
end of the fiscal year for the purpose of funding the essential air 
service program under this subchapter shall be made available to the 
Administration for use in improving rural air safety under subchapter I 
of chapter 471 of this title and shall be used exclusively for projects 
at rural airports under this subchapter.
    ``(c) Special Rule for Fiscal Year 1997.--Notwithstanding 
subsections (a) and (b), in fiscal year 1997, amounts in excess of 
$75,000,000 that are collected in fees pursuant to section 45301(a)(1) 
of this title shall be available for the essential air service program 
under this subchapter, in addition to amounts specifically provided for 
in appropriations Acts.''.
    (d) Conforming Amendment.--The table of sections for chapter 417 is 
amended by striking the item relating to section 41742 and inserting 
the following:
``41742. Essential air service authorization.''.

                      TITLE III--AVIATION SECURITY

SEC. 301. REPORT INCLUDING PROPOSED LEGISLATION ON FUNDING FOR AIRPORT 
              SECURITY.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, the Administrator of the Federal Aviation 
Administration, in cooperation with other appropriate persons, shall 
conduct a study and submit to Congress a report on whether, and if so 
how, to transfer certain responsibilities of air carriers under Federal 
law for security activities conducted onsite at commercial service 
airports to airport operators or to the Federal Government or to 
provide for shared responsibilities between air carriers and airport 
operators or the Federal Government.
    (b) Contents of Report.--The report submitted under this section 
shall--
        (1) examine potential sources of Federal and non-Federal 
    revenue that may be used to fund security activities, including 
    providing grants from funds received as fees collected under a fee 
    system established under subtitle C of title II of this Act and the 
    amendments made by that subtitle; and
        (2) provide legislative proposals, if necessary, for 
    accomplishing the transfer of responsibilities referred to in 
    subsection (a).

SEC. 302. CERTIFICATION OF SCREENING COMPANIES.

    The Administrator of the Federal Aviation Administration is 
directed to certify companies providing security screening and to 
improve the training and testing of security screeners through 
development of uniform performance standards for providing security 
screening services.

SEC. 303. WEAPONS AND EXPLOSIVE DETECTION STUDY.

    (a) In General.--The Administrator of the Federal Aviation 
Administration shall enter into an arrangement with the Director of the 
National Academy of Sciences (or if the National Academy of Sciences is 
not available, the head of another equivalent entity) to conduct a 
study in accordance to this section.
    (b) Panel of Experts.--
        (1) In general.--In carrying out a study under this section, 
    the Director of the National Academy of Sciences (or the head of 
    another equivalent entity) shall establish a panel (hereinafter in 
    this section referred to as the ``panel'').
        (2) Expertise.--Each member of the panel shall have expertise 
    in weapons and explosive detection technology, security, air 
    carrier and airport operations, or another appropriate area. The 
    Director of the National Academy of Sciences (or the head of 
    another equivalent entity) shall ensure that the panel has an 
    appropriate number of representatives of the areas specified in the 
    preceding sentence.
    (c) Study.--The panel, in consultation with the National Science 
and Technology Council, representatives of appropriate Federal 
agencies, and appropriate members of the private sector, shall--
        (1) assess the weapons and explosive detection technologies 
    that are available at the time of the study that are capable of 
    being effectively deployed in commercial aviation;
        (2) determine how the technologies referred to in paragraph (1) 
    may more effectively be used for promotion and improvement of 
    security at airport and aviation facilities and other secured 
    areas;
        (3) assess the cost and advisability of requiring hardened 
    cargo containers as a way to enhance aviation security and reduce 
    the required sensitivity of bomb detection equipment; and
        (4) on the basis of the assessments and determinations made 
    under paragraphs (1), (2), and (3), identify the most promising 
    technologies for the improvement of the efficiency and cost-
    effectiveness of weapons and explosive detection.
    (d) Cooperation.--The National Science and Technology Council shall 
take such actions as may be necessary to facilitate, to the maximum 
extent practicable and upon request of the Director of the National 
Academy of Sciences (or the head of another equivalent entity), the 
cooperation of representatives of appropriate Federal agencies, as 
provided for in subsection (c), in providing the panel, for the study 
under this section--
        (1) expertise; and
        (2) to the extent allowable by law, resources and facilities.
    (e) Reports.--The Director of the National Academy of Sciences (or 
the head of another equivalent entity) shall, pursuant to an 
arrangement entered into under subsection (a), submit to the 
Administrator such reports as the Administrator considers to be 
appropriate. Upon receipt of a report under this subsection, the 
Administrator shall submit a copy of the report to the appropriate 
committees of Congress.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated for each of fiscal years 1997 through 2001 such sums as 
may be necessary to carry out this section.

SEC. 304. REQUIREMENT FOR CRIMINAL HISTORY RECORDS CHECKS.

    (a) In General.--Section 44936(a)(1) is amended--
        (1) by redesignating subparagraphs (A) and (B) as clauses (i) 
    and (ii), respectively;
        (2) by striking ``(1)'' and inserting ``(1)(A)''; and
        (3) by adding at the end the following:
    ``(B) The Administrator shall require by regulation that an 
employment investigation (including a criminal history record check in 
any case described in subparagraph (C)) be conducted for--
        ``(i) individuals who will be responsible for screening 
    passengers or property under section 44901 of this title;
        ``(ii) supervisors of the individuals described in clause (i); 
    and
        ``(iii) such other individuals who exercise security functions 
    associated with baggage or cargo, as the Administrator determines 
    is necessary to ensure air transportation security.
    ``(C) Under the regulations issued under subparagraph (B), a 
criminal history record check shall be conducted in any case in which--
        ``(i) an employment investigation reveals a gap in employment 
    of 12 months or more that the individual who is the subject of the 
    investigation does not satisfactorily account for;
        ``(ii) such individual is unable to support statements made on 
    the application of such individual;
        ``(iii) there are significant inconsistencies in the 
    information provided on the application of such individual; or
        ``(iv) information becomes available during the employment 
    investigation indicating a possible conviction for one of the 
    crimes listed in subsection (b)(1)(B).
    ``(D) If an individual requires a criminal history record check 
under subparagraph (C), the individual may be employed as a screener 
until the check is completed if the individual is subject to 
supervision.''.
    (b) Applicability.--The amendment made by subsection (a)(3) shall 
apply to individuals hired to perform functions described in section 
44936(a)(1)(B) of title 49, United States Code, after the date of the 
enactment of this Act; except that the Administrator of the Federal 
Aviation Administration may, as the Administrator determines to be 
appropriate, require such employment investigations or criminal history 
records checks for individuals performing those functions on the date 
of the enactment of this Act.

SEC. 305. INTERIM DEPLOYMENT OF COMMERCIALLY AVAILABLE EXPLOSIVE 
              DETECTION EQUIPMENT.

    (a) In General.--Section 44913(a) is amended--
        (1) by redesignating paragraph (3) as paragraph (4); and
        (2) by inserting after paragraph (2) the following:
    ``(3) Until such time as the Administrator determines that 
equipment certified under paragraph (1) is commercially available and 
has successfully completed operational testing as provided in paragraph 
(1), the Administrator shall facilitate the deployment of such approved 
commercially available explosive detection devices as the Administrator 
determines will enhance aviation security significantly. The 
Administrator shall require that equipment deployed under this 
paragraph be replaced by equipment certified under paragraph (1) when 
equipment certified under paragraph (1) becomes commercially available. 
The Administrator is authorized, based on operational considerations at 
individual airports, to waive the required installation of commercially 
available equipment under paragraph (1) in the interests of aviation 
security. The Administrator may permit the requirements of this 
paragraph to be met at airports by the deployment of dogs or other 
appropriate animals to supplement equipment for screening passengers, 
baggage, mail, or cargo for explosives or weapons.''.
    (b) Agreements.--The Administrator is authorized to use 
noncompetitive or cooperative agreements with air carriers and airport 
authorities that provide for the Administrator to purchase and assist 
in installing advanced security equipment for the use of such entities.

SEC. 306. AUDIT OF PERFORMANCE OF BACKGROUND CHECKS FOR CERTAIN 
              PERSONNEL.

    Section 44936(a) is amended by adding at the end the following:
    ``(3) The Administrator shall provide for the periodic audit of the 
effectiveness of criminal history record checks conducted under 
paragraph (1) of this subsection.''.

SEC. 307. PASSENGER PROFILING.

    The Administrator of the Federal Aviation Administration, the 
Secretary of Transportation, the intelligence community, and the law 
enforcement community should continue to assist air carriers in 
developing computer-assisted passenger profiling programs and other 
appropriate passenger profiling programs which should be used in 
conjunction with other security measures and technologies.

SEC. 308. AUTHORITY TO USE CERTAIN FUNDS FOR AIRPORT SECURITY PROGRAMS 
              AND ACTIVITIES.

    (a) In General.--Notwithstanding any other provision of law, funds 
referred to in subsection (b) may be used for the improvement of 
facilities and the purchase and deployment of equipment to enhance and 
ensure the safety and security of passengers and other persons involved 
in air travel.
    (b) Covered Funds.--The following funds may be used under 
subsection (a):
        (1) Project grants made under subchapter I of chapter 471 of 
    title 49, United States Code.
        (2) Passenger facility fees collected under section 40117 of 
    title 49, United States Code.

SEC. 309. DEVELOPMENT OF AVIATION SECURITY LIAISON AGREEMENT.

    The Secretary of Transportation and the Attorney General, acting 
through the Administrator of the Federal Aviation Administration and 
the Director of the Federal Bureau of Investigation, shall enter into 
an interagency agreement providing for the establishment of an aviation 
security liaison at existing appropriate Federal agencies' field 
offices in or near cities served by a designated high-risk airport.

SEC. 310. REGULAR JOINT THREAT ASSESSMENTS.

    The Administrator of the Federal Aviation Administration and the 
Director of the Federal Bureau of Investigation shall carry out joint 
threat and vulnerability assessments on security every 3 years, or more 
frequently, as necessary, at each airport determined to be high risk.

SEC. 311. BAGGAGE MATCH REPORT.

    (a) Report.--If a bag match pilot program is carried out as 
recommended by the White House Conference on Aviation Safety and 
Security, not later than the 30th day following the date of completion 
of the pilot program, the Administrator of the Federal Aviation 
Administration shall submit to Congress a report on the safety, 
effectiveness, and operational effectiveness of the pilot program. The 
report shall also assess the extent to which implementation of baggage 
match requirements (coupled with the best available technologies and 
methodologies, such as passenger profiling) enhance domestic aviation 
security.
    (b) Sense of the Senate.--It is the sense of the Senate that the 
Administrator should work with airports and air carriers to develop, to 
the extent feasible, effective domestic bag matching proposals.

SEC. 312. ENHANCED SECURITY PROGRAMS.

    (a) In General.--Chapter 449 is amended by adding at the end of 
subchapter I the following:

``Sec. 44916. Assessments and evaluations

    ``(a) Periodic Assessments.--The Administrator shall require each 
air carrier and airport (including the airport owner or operator in 
cooperation with the air carriers and vendors serving each airport) 
that provides for intrastate, interstate, or foreign air transportation 
to conduct periodic vulnerability assessments of the security systems 
of that air carrier or airport, respectively. The Administration shall 
perform periodic audits of such assessments.
    ``(b) Investigations.--The Administrator shall conduct periodic and 
unannounced inspections of security systems of airports and air 
carriers to determine the effectiveness and vulnerabilities of such 
systems. To the extent allowable by law, the Administrator may provide 
for anonymous tests of those security systems.''.
    (b) Clerical Amendment.--The table of sections for such chapter is 
amended by inserting after the item relating to section 44915 the 
following:
``44916. Assessments and evaluations.''.

SEC. 313. REPORT ON AIR CARGO.

    (a) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Transportation shall transmit to Congress 
a report on any changes recommended and implemented as a result of the 
White House Commission on Aviation Safety and Security to enhance and 
supplement screening and inspection of cargo, mail, and company-shipped 
materials transported in air commerce.
    (b) Contents.--The report shall include--
        (1) an assessment of the effectiveness of the changes referred 
    to in subsection (a);
        (2) an assessment of the oversight by the Federal Aviation 
    Administration of inspections of shipments of mail and cargo by 
    domestic and foreign air carriers;
        (3) an assessment of the need for additional security measures 
    with respect to such inspections;
        (4) an assessment of the adequacy of inspection and screening 
    of cargo on passenger air carriers; and
        (5) any additional recommendations, and if necessary any 
    legislative proposals, necessary to carry out additional changes.
    (c) Sense of the Senate.--It is the sense of the Senate that the 
inspection of cargo, mail, and company-shipped materials can be 
enhanced.

SEC. 314. SENSE OF THE SENATE REGARDING ACTS OF INTERNATIONAL 
              TERRORISM.

    (a) Findings.--The Senate finds that--
        (1) there has been an intensification in the oppression and 
    disregard for human life among nations that are willing to export 
    terrorism;
        (2) there has been an increase in attempts by criminal 
    terrorists to murder airline passengers through the destruction of 
    civilian airliners and the deliberate fear and death inflicted 
    through bombings of buildings and the kidnapping of tourists and 
    Americans residing abroad; and
        (3) information widely available demonstrates that a 
    significant portion of international terrorist activity is state-
    sponsored, -organized, -condoned, or -directed.
    (b) Sense of the Senate.--It is the sense of the Senate that if 
evidence establishes beyond a clear and reasonable doubt that any act 
of hostility towards any United States citizen was an act of 
international terrorism sponsored, organized, condoned, or directed by 
any nation, a state of war should be considered to exist or to have 
existed between the United States and that nation, beginning as of the 
moment that the act of aggression occurs.

                       TITLE IV--AVIATION SAFETY

SEC. 401. ELIMINATION OF DUAL MANDATE.

    (a) Safety Considerations in Public Interest.--
        (1) Safety as highest priority.--Section 40101(d) is amended--
            (A) by redesignating paragraphs (1) through (6) as 
        paragraphs (2) through (7), respectively; and
            (B) by inserting before paragraph (2), as so redesignated, 
        the following:
        ``(1) assigning, maintaining, and enhancing safety and security 
    as the highest priorities in air commerce.''.
        (2) Elimination of promotion.--Section 40101(d) is further 
    amended--
            (A) in paragraph (2), as redesignated by paragraph (1)(A) 
        of this subsection, by striking ``its development and''; and
            (B) in paragraph (3), as so redesignated--
                (i) by striking ``promoting, encouraging,'' and 
            inserting ``encouraging''; and
                (ii) by inserting before the period at the end ``, 
            including new aviation technology''.
    (b) FAA Safety Mission.--
        (1) In general.--Section 40104 is amended--
            (A) by inserting ``safety of'' before ``air commerce'' in 
        the section heading;
            (B) by inserting ``Safety of'' before ``Air Commerce'' in 
        the heading of subsection (a); and
            (C) by inserting ``safety of'' before ``air commerce'' in 
        subsection (a).
        (2) Clerical amendment.--The table of sections for chapter 401 
    is amended by striking the item relating to section 40104 and 
    inserting the following:
``40104. Promotion of civil aeronautics and safety of air commerce.''.

SEC. 402. PROTECTION OF VOLUNTARILY SUBMITTED INFORMATION.

    (a) In General.--Chapter 401, as amended by section 253 of this 
Act, is further amended by adding at the end the following:

``Sec. 40123. Protection of voluntarily submitted information

    ``(a) In General.--Notwithstanding any other provision of law, 
neither the Administrator of the Federal Aviation Administration, nor 
any agency receiving information from the Administrator, shall disclose 
voluntarily-provided safety or security related information if the 
Administrator finds that--
        ``(1) the disclosure of the information would inhibit the 
    voluntary provision of that type of information and that the 
    receipt of that type of information aids in fulfilling the 
    Administrator's safety and security responsibilities; and
        ``(2) withholding such information from disclosure would be 
    consistent with the Administrator's safety and security 
    responsibilities.
    ``(b) Regulations.--The Administrator shall issue regulations to 
carry out this section.''.
    (b) Conforming Amendment.--The table of sections for such chapter 
is amended by adding at the end the following:
``40123. Protection of voluntarily submitted information.''.

SEC. 403. SUPPLEMENTAL TYPE CERTIFICATES.

    Section 44704 is amended--
        (1) by redesignating subsections (b) and (c) as subsections (c) 
    and (d), respectively; and
        (2) by inserting after subsection (a) the following:
    ``(b) Supplemental Type Certificates.--
        ``(1) Issuance.--The Administrator may issue a type certificate 
    designated as a supplemental type certificate for a change to an 
    aircraft, aircraft engine, propeller, or appliance.
        ``(2) Contents.--A supplemental type certificate issued under 
    paragraph (1) shall consist of the change to the aircraft, aircraft 
    engine, propeller, or appliance with respect to the previously 
    issued type certificate for the aircraft, aircraft engine, 
    propeller, or appliance.
        ``(3) Requirement.--If the holder of a supplemental type 
    certificate agrees to permit another person to use the certificate 
    to modify an aircraft, aircraft engine, propeller, or appliance, 
    the holder shall provide the other person with written evidence, in 
    a form acceptable to the Administrator, of that agreement. A person 
    may change an aircraft, aircraft engine, propeller, or appliance 
    based on a supplemental type certificate only if the person 
    requesting the change is the holder of the supplemental type 
    certificate or has permission from the holder to make the 
    change.''.

SEC. 404. CERTIFICATION OF SMALL AIRPORTS.

    (a) In General.--Section 44706(a) is amended--
        (1) by redesignating paragraph (2) as paragraph (3);
        (2) by inserting after paragraph (1) the following:
        ``(2) that is not located in the State of Alaska and serves any 
    scheduled passenger operation of an air carrier operating aircraft 
    designed for more than 9 passenger seats but less than 31 passenger 
    seats; and'';
        (3) by striking ``and'' at the end of paragraph (3), as 
    redesignated by paragraph (1) of this subsection;
        (4) by striking ``(3) when'' and inserting ``if''; and
        (5) by moving the matter following paragraph (3), as 
    redesignated by paragraph (1) of this subsection, to the left flush 
    full measure.
    (b) Commuter Airports.--Section 44706 is amended by adding at the 
end the following:
    ``(d) Commuter Airports.--In developing the terms required by 
subsection (b) for airports covered by subsection (a)(2), the 
Administrator shall identify and consider a reasonable number of 
regulatory alternatives and select from such alternatives the least 
costly, most cost-effective or the least burdensome alternative that 
will provide comparable safety at airports described in subsections 
(a)(1) and (a)(2).''.
    (c) Effective Date.--Section 44706 is further amended by adding at 
the end the following:
    ``(e) Effective Date.--Any regulation establishing the terms 
required by subsection (b) for airports covered by subsection (a)(2) 
shall not take effect until such regulation, and a report on the 
economic impact of the regulation on air service to the airports 
covered by the rule, has been submitted to Congress and 120 days have 
elapsed following the date of such submission.''.
    (d) Limitation on Statutory Construction.--Section 44706 is further 
amended by adding at the end the following:
    ``(f) Limitation on Statutory Construction.--Nothing in this title 
may be construed as requiring a person to obtain an airport operating 
certificate if such person does not desire to operate an airport 
described in subsection (a).''.

SEC. 405. AUTHORIZATION OF APPROPRIATIONS FOR STATE-SPECIFIC SAFETY 
              MEASURES.

    There are authorized to be appropriated to the Federal Aviation 
Administration not more than $10,000,000 for fiscal year 1997 for the 
purpose of addressing State-specific aviation safety problems 
identified by the National Transportation Safety Board.

SEC. 406. AIRCRAFT ENGINE STANDARDS.

    (a) Standards and Regulations.--Subsection (a)(1) of section 44715 
is amended to read as follows:
    ``(a) Standards and Regulations.--(1)(A) To relieve and protect the 
public health and welfare from aircraft noise and sonic boom, the 
Administrator of the Federal Aviation Administration, as he deems 
necessary, shall prescribe--
        ``(i) standards to measure aircraft noise and sonic boom; and
        ``(ii) regulations to control and abate aircraft noise and 
    sonic boom.
    ``(B) The Administrator, as the Administrator deems appropriate, 
shall provide for the participation of a representative of the 
Environmental Protection Agency on such advisory committees or 
associated working groups that advise the Administrator on matters 
related to the environmental effects of aircraft and aircraft 
engines.''.
    (b) Interagency Cooperation.--Section 231(a)(2) of the Clean Air 
Act (42 U.S.C. 7571(a)(2)) is amended--
        (1) by inserting ``(A)'' before ``The Administrator''; and
        (2) by adding at the end the following:
    ``(B)(i) The Administrator shall consult with the Administrator of 
the Federal Aviation Administration on aircraft engine emission 
standards.
    ``(ii) The Administrator shall not change the aircraft engine 
emission standards if such change would significantly increase noise 
and adversely affect safety.''.

SEC. 407. ACCIDENT AND SAFETY DATA CLASSIFICATION; REPORT ON EFFECTS OF 
              PUBLICATION AND AUTOMATED SURVEILLANCE TARGETING SYSTEMS.

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

``Sec. 1119. Accident and safety data classification and publication

    ``(a) In General.--Not later than 90 days after the date of the 
enactment of this section, the National Transportation Safety Board 
shall, in consultation and coordination with the Administrator of the 
Federal Aviation Administration, develop a system for classifying air 
carrier accident data maintained by the Board.
    ``(b) Requirements for Classification System.--
        ``(1) In general.--The system developed under this section 
    shall provide for the classification of accident and safety data in 
    a manner that, in comparison to the system in effect on the date of 
    the enactment of this section, provides for safety-related 
    categories that provide clearer descriptions of accidents 
    associated with air transportation, including a more refined 
    classification of accidents which involve fatalities, injuries, or 
    substantial damage and which are only related to the operation of 
    an aircraft.
        ``(2) Public comment.--In developing a system of classification 
    under paragraph (1), the Board shall provide adequate opportunity 
    for public review and comment.
        ``(3) Final classification.--After providing for public review 
    and comment, and after consulting with the Administrator, the Board 
    shall issue final classifications. The Board shall ensure that air 
    travel accident covered under this section is classified in 
    accordance with the final classifications issued under this section 
    for data for calendar year 1997, and for each subsequent calendar 
    year.
        ``(4) Publication.--The Board shall publish on a periodic basis 
    accident and safety data in accordance with the final 
    classifications issued under paragraph (3).
        ``(5) Recommendations of the administrator.--The Administrator 
    may, from time to time, request the Board to consider revisions 
    (including additions to the classification system developed under 
    this section). The Board shall respond to any request made by the 
    Administrator under this section not later than 90 days after 
    receiving that request.''.
        (2) Conforming amendment.--The table of sections for subchapter 
    II of chapter 11 of title 49, United States Code, is amended by 
    adding at the end the following:
``1119. Accident and safety data classification and publication.''.

    (b) Automated Surveillance Targeting Systems.--Section 44713 is 
amended by adding at the end the following:
    ``(e) Automated Surveillance Targeting Systems.--
        ``(1) In general.--The Administrator shall give high priority 
    to developing and deploying a fully enhanced safety performance 
    analysis system that includes automated surveillance to assist the 
    Administrator in prioritizing and targeting surveillance and 
    inspection activities of the Federal Aviation Administration.
        ``(2) Deadlines for deployment.--
            ``(A) Initial phase.--The initial phase of the operational 
        deployment of the system developed under this subsection shall 
        begin not later than December 31, 1997.
            ``(B) Final phase.--The final phase of field deployment of 
        the system developed under this subsection shall begin not 
        later than December 31, 1999. By that date, all principal 
        operations and maintenance inspectors of the Administration, 
        and appropriate supervisors and analysts of the Administration 
        shall have been provided access to the necessary information 
        and resources to carry out the system.
        ``(3) Integration of information.--In developing the system 
    under this section, the Administration shall consider the near-term 
    integration of accident and incident data into the safety 
    performance analysis system under this subsection.''.

                     TITLE V--PILOT RECORD SHARING

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Pilot Records Improvement Act of 
1996''.

SEC. 502. EMPLOYMENT INVESTIGATIONS OF PILOT APPLICANTS.

    (a) In General.--Section 44936 is amended by adding at the end the 
following:
    ``(f) Records of Employment of Pilot Applicants.--
        ``(1) In general.--Before hiring an individual as a pilot, an 
    air carrier shall request and receive the following information:
            ``(A) FAA records.--From the Administrator of the Federal 
        Aviation Administration, records pertaining to the individual 
        that are maintained by the Administrator concerning--
                ``(i) current airman certificates (including airman 
            medical certificates) and associated type ratings, 
            including any limitations to those certificates and 
            ratings; and
                ``(ii) summaries of legal enforcement actions resulting 
            in a finding by the Administrator of a violation of this 
            title or a regulation prescribed or order issued under this 
            title that was not subsequently overturned.
            ``(B) Air carrier and other records.--From any air carrier 
        or other person that has employed the individual at any time 
        during the 5-year period preceding the date of the employment 
        application of the individual, or from the trustee in 
        bankruptcy for such air carrier or person--
                ``(i) records pertaining to the individual that are 
            maintained by an air carrier (other than records relating 
            to flight time, duty time, or rest time) under regulations 
            set forth in--

                    ``(I) section 121.683 of title 14, Code of Federal 
                Regulations;
                    ``(II) paragraph (A) of section VI, appendix I, 
                part 121 of such title;
                    ``(III) paragraph (A) of section IV, appendix J, 
                part 121 of such title;
                    ``(IV) section 125.401 of such title; and
                    ``(V) section 135.63(a)(4) of such title; and

                ``(ii) other records pertaining to the individual that 
            are maintained by the air carrier or person concerning--

                    ``(I) the training, qualifications, proficiency, or 
                professional competence of the individual, including 
                comments and evaluations made by a check airman 
                designated in accordance with section 121.411, 125.295, 
                or 135.337 of such title;
                    ``(II) any disciplinary action taken with respect 
                to the individual that was not subsequently overturned; 
                and
                    ``(III) any release from employment or resignation, 
                termination, or disqualification with respect to 
                employment.

            ``(C) National driver register records.--In accordance with 
        section 30305(b)(7), from the chief driver licensing official 
        of a State, information concerning the motor vehicle driving 
        record of the individual.
        ``(2) Written consent; release from liability.--An air carrier 
    making a request for records under paragraph (1)--
            ``(A) shall be required to obtain written consent to the 
        release of those records from the individual that is the 
        subject of the records requested; and
            ``(B) may, notwithstanding any other provision of law or 
        agreement to the contrary, require the individual who is the 
        subject of the records to request to execute a release from 
        liability for any claim arising from the furnishing of such 
        records to or the use of such records by such air carrier 
        (other than a claim arising from furnishing information known 
        to be false and maintained in violation of a criminal statute).
        ``(3) 5-year reporting period.--A person shall not furnish a 
    record in response to a request made under paragraph (1) if the 
    record was entered more than 5 years before the date of the 
    request, unless the information concerns a revocation or suspension 
    of an airman certificate or motor vehicle license that is in effect 
    on the date of the request.
        ``(4) Requirement to maintain records.--The Administrator shall 
    maintain pilot records described in paragraph (1)(A) for a period 
    of at least 5 years.
        ``(5) Receipt of consent; provision of information.--A person 
    shall not furnish a record in response to a request made under 
    paragraph (1) without first obtaining a copy of the written consent 
    of the individual who is the subject of the records requested. A 
    person who receives a request for records under this paragraph 
    shall furnish a copy of all of such requested records maintained by 
    the person not later than 30 days after receiving the request.
        ``(6) Right to receive notice and copy of any record 
    furnished.--A person who receives a request for records under 
    paragraph (1) shall provide to the individual who is the subject of 
    the records--
            ``(A) on or before the 20th day following the date of 
        receipt of the request, written notice of the request and of 
        the individual's right to receive a copy of such records; and
            ``(B) in accordance with paragraph (10), a copy of such 
        records, if requested by the individual.
        ``(7) Reasonable charges for processing requests and furnishing 
    copies.--A person who receives a request under paragraph (1) or (6) 
    may establish a reasonable charge for the cost of processing the 
    request and furnishing copies of the requested records.
        ``(8) Standard forms.--The Administrator shall promulgate--
            ``(A) standard forms that may be used by an air carrier to 
        request records under paragraph (1); and
            ``(B) standard forms that may be used by an air carrier 
        to--
                ``(i) obtain the written consent of the individual who 
            is the subject of a request under paragraph (1); and
                ``(ii) inform the individual of--

                    ``(I) the request; and
                    ``(II) the individual right of that individual to 
                receive a copy of any records furnished in response to 
                the request.

        ``(9) Right to correct inaccuracies.--An air carrier that 
    maintains or requests and receives the records of an individual 
    under paragraph (1) shall provide the individual with a reasonable 
    opportunity to submit written comments to correct any inaccuracies 
    contained in the records before making a final hiring decision with 
    respect to the individual.
        ``(10) Right of pilot to review certain records.--
    Notwithstanding any other provision of law or agreement, an air 
    carrier shall, upon written request from a pilot employed by such 
    carrier, make available, within a reasonable time of the request, 
    to the pilot for review, any and all employment records referred to 
    in paragraph (1)(B) (i) or (ii) pertaining to the employment of the 
    pilot.
        ``(11) Privacy protections.--An air carrier that receives the 
    records of an individual under paragraph (1) may use such records 
    only to assess the qualifications of the individual in deciding 
    whether or not to hire the individual as a pilot. The air carrier 
    shall take such actions as may be necessary to protect the privacy 
    of the pilot and the confidentiality of the records, including 
    ensuring that information contained in the records is not divulged 
    to any individual that is not directly involved in the hiring 
    decision.
        ``(12) Periodic review.--Not later than 18 months after the 
    date of the enactment of the Pilot Records Improvement Act of 1996, 
    and at least once every 3 years thereafter, the Administrator shall 
    transmit to Congress a statement that contains, taking into account 
    recent developments in the aviation industry--
            ``(A) recommendations by the Administrator concerning 
        proposed changes to Federal Aviation Administration records, 
        air carrier records, and other records required to be furnished 
        under subparagraphs (A) and (B) of paragraph (1); or
            ``(B) reasons why the Administrator does not recommend any 
        proposed changes to the records referred to in subparagraph 
        (A).
        ``(13) Regulations.--The Administrator may prescribe such 
    regulations as may be necessary--
            ``(A) to protect--
                ``(i) the personal privacy of any individual whose 
            records are requested under paragraph (1); and
                ``(ii) the confidentiality of those records;
            ``(B) to preclude the further dissemination of records 
        received under paragraph (1) by the person who requested those 
        records; and
            ``(C) to ensure prompt compliance with any request made 
        under paragraph (1).
    ``(g) Limitation on Liability; Preemption of State Law.--
        ``(1) Limitation on liability.--No action or proceeding may be 
    brought by or on behalf of an individual who has applied for or is 
    seeking a position with an air carrier as a pilot and who has 
    signed a release from liability, as provided for under paragraph 
    (2), against--
            ``(A) the air carrier requesting the records of that 
        individual under subsection (f)(1);
            ``(B) a person who has complied with such request;
            ``(C) a person who has entered information contained in the 
        individual's records; or
            ``(D) an agent or employee of a person described in 
        subparagraph (A) or (B);
    in the nature of an action for defamation, invasion of privacy, 
    negligence, interference with contract, or otherwise, or under any 
    Federal or State law with respect to the furnishing or use of such 
    records in accordance with subsection (f).
        ``(2) Preemption.--No State or political subdivision thereof 
    may enact, prescribe, issue, continue in effect, or enforce any law 
    (including any regulation, standard, or other provision having the 
    force and effect of law) that prohibits, penalizes, or imposes 
    liability for furnishing or using records in accordance with 
    subsection (f).
        ``(3) Provision of knowingly false information.--Paragraphs (1) 
    and (2) shall not apply with respect to a person who furnishes 
    information in response to a request made under subsection (f)(1), 
    that--
            ``(A) the person knows is false; and
            ``(B) was maintained in violation of a criminal statute of 
        the United States.
    ``(h) Limitation on Statutory Construction.--Nothing in subsection 
(f) shall be construed as precluding the availability of the records of 
a pilot in an investigation or other proceeding concerning an accident 
or incident conducted by the Administrator, the National Transportation 
Safety Board, or a court.''.
    (b) Conforming Amendments.--Section 30305(b) is amended--
        (1) by redesignating paragraph (7) as paragraph (8); and
        (2) by inserting after paragraph (6) the following:
        ``(7) An individual who is seeking employment by an air carrier 
    as a pilot may request the chief driver licensing official of a 
    State to provide information about the individual under paragraph 
    (2) to the prospective employer of the individual or to the 
    Secretary of Transportation. Information may not be obtained from 
    the National Driver Register under this subsection if the 
    information was entered in the Register more than 5 years before 
    the request unless the information is about a revocation or 
    suspension still in effect on the date of the request.''.
    (c) Civil Penalties.--Section 46301, as amended by section 1220(b) 
of this Act, is further amended--
        (1) in each of subsections (a)(1)(A), (d)(2), and (f)(1)(A)(i) 
    by inserting ``44724,'' after ``44718(d),''; and
        (2) in subsection (a)(2)(A) by inserting ``44724,'' after 
    ``44716,''.
    (d) Applicability.--The amendments made by this section shall apply 
to any air carrier hiring an individual as a pilot whose application 
was first received by the carrier on or after the 120th day following 
the date of the enactment of this Act.

SEC. 503. STUDIES OF MINIMUM STANDARDS FOR PILOT QUALIFICATIONS AND OF 
              PAY FOR TRAINING.

    (a) Study.--The Administrator of the Federal Aviation 
Administration shall appoint a task force consisting of appropriate 
representatives of the aviation industry to conduct--
        (1) a study directed toward the development of--
            (A) standards and criteria for preemployment screening 
        tests measuring the psychomotor coordination, general 
        intellectual capacity, instrument and mechanical comprehension, 
        and physical and mental fitness of an applicant for employment 
        as a pilot by an air carrier; and
            (B) standards and criteria for pilot training facilities to 
        be licensed by the Administrator and which will assure that 
        pilots trained at such facilities meet the preemployment 
        screening standards and criteria described in subparagraph (A); 
        and
        (2) a study to determine if the practice of some air carriers 
    to require employees or prospective employees to pay for the 
    training or experience that is needed to perform flight check 
    duties for an air carrier is in the public interest.
    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Administrator shall transmit to Congress a report on 
the results of the study conducted under subsection (a)(2).

SEC. 504. STUDY OF MINIMUM FLIGHT TIME.

    (a) Study.--The Administrator of the Federal Aviation 
Administration shall conduct a study to determine whether current 
minimum flight time requirements applicable to individuals seeking 
employment as a pilot with an air carrier are sufficient to ensure 
public safety.
    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Administrator shall transmit to Congress a report on 
the results of the study.

                      TITLE VI--CHILD PILOT SAFETY

SEC. 601. SHORT TITLE.

    This title may be cited as the ``Child Pilot Safety Act''.

SEC. 602. CHILD PILOT SAFETY.

    (a) Manipulation of Flight Controls.--
        (1) In General.--Chapter 447 is amended by adding at the end 
    the following:

``Sec. 44724. Manipulation of flight controls

    ``(a) Prohibition.--No pilot in command of an aircraft may allow an 
individual who does not hold--
        ``(1) a valid private pilots certificate issued by the 
    Administrator of the Federal Aviation Administration under part 61 
    of title 14, Code of Federal Regulations; and
        ``(2) the appropriate medical certificate issued by the 
    Administrator under part 67 of such title,
to manipulate the controls of an aircraft if the pilot knows or should 
have known that the individual is attempting to set a record or engage 
in an aeronautical competition or aeronautical feat, as defined by the 
Administrator.
    ``(b) Revocation of Airmen Certificates.--The Administrator shall 
issue an order revoking a certificate issued to an airman under section 
44703 of this title if the Administrator finds that while acting as a 
pilot in command of an aircraft, the airman has permitted another 
individual to manipulate the controls of the aircraft in violation of 
subsection (a).
    ``(c) Pilot in Command Defined.--In this section, the term `pilot 
in command' has the meaning given such term by section 1.1 of title 14, 
Code of Federal Regulations.''.
        (2) Conforming amendment.--The table of sections at the 
    beginning of such chapter is amended by adding at the end the 
    following:
``44724. Manipulation of flight controls.''.

    (b) Children Flying Aircraft.--
        (1) Study.--The Administrator of the Federal Aviation 
    Administration shall conduct a study of the impacts of children 
    flying aircraft.
        (2) Considerations.--In conducting the study, the Administrator 
    shall consider the effects of imposing any restrictions on children 
    flying aircraft on safety and on the future of general aviation in 
    the United States.
        (3) Report.--Not later than 6 months after the date of the 
    enactment of this Act, the Administrator shall issue a report 
    containing the results of the study, together with recommendations 
    on--
            (A) whether the restrictions established by the amendment 
        made by subsection (a)(1) should be modified or repealed; and
            (B) whether certain individuals or groups should be exempt 
        from any age, altitude, or other restrictions that the 
        Administrator may impose by regulation.
        (4) Regulations.--As a result of the findings of the study, the 
    Administrator may issue regulations imposing age, altitude, or 
    other restrictions on children flying aircraft.

                      TITLE VII--FAMILY ASSISTANCE

SEC. 701. SHORT TITLE.

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

SEC. 702. ASSISTANCE BY NATIONAL TRANSPORTATION SAFETY BOARD TO 
              FAMILIES OF PASSENGERS INVOLVED IN AIRCRAFT ACCIDENTS.

    (a) Authority To Provide Assistance.--
        (1) In general.--Subchapter III of chapter 11 is amended by 
    adding at the end the following:

``Sec. 1136. Assistance to families of passengers involved in aircraft 
            accidents

    ``(a) In General.--As soon as practicable after being notified of 
an aircraft accident within the United States involving an air carrier 
or foreign air carrier and resulting in a major loss of life, the 
Chairman of the National Transportation Safety Board shall--
        ``(1) designate and publicize the name and phone number of a 
    director of family support services who shall be an employee of the 
    Board and shall be responsible for acting as a point of contact 
    within the Federal Government for the families of passengers 
    involved in the accident and a liaison between the air carrier or 
    foreign air carrier and the families; and
        ``(2) designate an independent nonprofit organization, with 
    experience in disasters and posttrauma communication with families, 
    which shall have primary responsibility for coordinating the 
    emotional care and support of the families of passengers involved 
    in the accident.
    ``(b) Responsibilities of the Board.--The Board shall have primary 
Federal responsibility for facilitating the recovery and identification 
of fatally-injured passengers involved in an accident described in 
subsection (a).
    ``(c) Responsibilities of Designated Organization.--The 
organization designated for an accident under subsection (a)(2) shall 
have the following responsibilities with respect to the families of 
passengers involved in the accident:
        ``(1) To provide mental health and counseling services, in 
    coordination with the disaster response team of the air carrier or 
    foreign air carrier involved.
        ``(2) To take such actions as may be necessary to provide an 
    environment in which the families may grieve in private.
        ``(3) To meet with the families who have traveled to the 
    location of the accident, to contact the families unable to travel 
    to such location, and to contact all affected families periodically 
    thereafter until such time as the organization, in consultation 
    with the director of family support services designated for the 
    accident under subsection (a)(1), determines that further 
    assistance is no longer needed.
        ``(4) To communicate with the families as to the roles of the 
    organization, government agencies, and the air carrier or foreign 
    air carrier involved with respect to the accident and the post-
    accident activities.
        ``(5) To arrange a suitable memorial service, in consultation 
    with the families.
    ``(d) Passenger Lists.--
        ``(1) Requests for passenger lists.--
            ``(A) Requests by director of family support services.--It 
        shall be the responsibility of the director of family support 
        services designated for an accident under subsection (a)(1) to 
        request, as soon as practicable, from the air carrier or 
        foreign air carrier involved in the accident a list, which is 
        based on the best available information at the time of the 
        request, of the names of the passengers that were aboard the 
        aircraft involved in the accident.
            ``(B) Requests by designated organization.--The 
        organization designated for an accident under subsection (a)(2) 
        may request from the air carrier or foreign air carrier 
        involved in the accident a list described in subparagraph (A).
        ``(2) Use of information.--The director of family support 
    services and the organization may not release to any person 
    information on a list obtained under paragraph (1) but may provide 
    information on the list about a passenger to the family of the 
    passenger to the extent that the director of family support 
    services or the organization considers appropriate.
    ``(e) Continuing Responsibilities of the Board.--In the course of 
its investigation of an accident described in subsection (a), the Board 
shall, to the maximum extent practicable, ensure that the families of 
passengers involved in the accident--
        ``(1) are briefed, prior to any public briefing, about the 
    accident, its causes, and any other findings from the 
    investigation; and
        ``(2) are individually informed of and allowed to attend any 
    public hearings and meetings of the Board about the accident.
    ``(f) Use of Air Carrier Resources.--To the extent practicable, the 
organization designated for an accident under subsection (a)(2) shall 
coordinate its activities with the air carrier or foreign air carrier 
involved in the accident so that the resources of the carrier can be 
used to the greatest extent possible to carry out the organization's 
responsibilities under this section.
    ``(g) Prohibited Actions.--
        ``(1) Actions to impede the board.--No person (including a 
    State or political subdivision) may impede the ability of the Board 
    (including the director of family support services designated for 
    an accident under subsection (a)(1)), or an organization designated 
    for an accident under subsection (a)(2), to carry out its 
    responsibilities under this section or the ability of the families 
    of passengers involved in the accident to have contact with one 
    another.
        ``(2) Unsolicited communications.--In the event of an accident 
    involving an air carrier providing interstate or foreign air 
    transportation, no unsolicited communication concerning a potential 
    action for personal injury or wrongful death may be made by an 
    attorney or any potential party to the litigation to an individual 
    injured in the accident, or to a relative of an individual involved 
    in the accident, before the 30th day following the date of the 
    accident.
    ``(h) Definitions.--In this section, the following definitions 
apply:
        ``(1) Aircraft accident.--The term `aircraft accident' means 
    any aviation disaster regardless of its cause or suspected cause.
        ``(2) Passenger.--The term `passenger' includes an employee of 
    an air carrier aboard an aircraft.''.
        (2) Conforming amendment.--The table of sections for such 
    chapter is amended by inserting after the item relating to section 
    1135 the following:
``1136. Assistance to families of passengers involved in aircraft 
          accidents.''.

    (b) Penalties.--Section 1155(a)(1) of such title is amended--
        (1) by striking ``or 1134(b) or (f)(1)'' and inserting ``, 
    section 1134(b), section 1134(f)(1), or section 1136(g)''; and
        (2) by striking ``either of'' and inserting ``any of''.

SEC. 703. AIR CARRIER PLANS TO ADDRESS NEEDS OF FAMILIES OF PASSENGERS 
              INVOLVED IN AIRCRAFT ACCIDENTS.

    (a) In General.--Chapter 411 is amended by adding at the end the 
following:

``Sec. 41113. Plans to address needs of families of passengers involved 
            in aircraft accidents

    ``(a) Submission of Plans.--Not later than 6 months after the date 
of the enactment of this section, each air carrier holding a 
certificate of public convenience and necessity under section 41102 of 
this title shall submit to the Secretary and the Chairman of the 
National Transportation Safety Board a plan for addressing the needs of 
the families of passengers involved in any aircraft accident involving 
an aircraft of the air carrier and resulting in a major loss of life.
    ``(b) Contents of Plans.--A plan to be submitted by an air carrier 
under subsection (a) shall include, at a minimum, the following:
        ``(1) A plan for publicizing a reliable, toll-free telephone 
    number, and for providing staff, to handle calls from the families 
    of the passengers.
        ``(2) A process for notifying the families of the passengers, 
    before providing any public notice of the names of the passengers, 
    either by utilizing the services of the organization designated for 
    the accident under section 1136(a)(2) of this title or the services 
    of other suitably trained individuals.
        ``(3) An assurance that the notice described in paragraph (2) 
    will be provided to the family of a passenger as soon as the air 
    carrier has verified that the passenger was aboard the aircraft 
    (whether or not the names of all of the passengers have been 
    verified) and, to the extent practicable, in person.
        ``(4) An assurance that the air carrier will provide to the 
    director of family support services designated for the accident 
    under section 1136(a)(1) of this title, and to the organization 
    designated for the accident under section 1136(a)(2) of this title, 
    immediately upon request, a list (which is based on the best 
    available information at the time of the request) of the names of 
    the passengers aboard the aircraft (whether or not such names have 
    been verified), and will periodically update the list.
        ``(5) An assurance that the family of each passenger will be 
    consulted about the disposition of all remains and personal effects 
    of the passenger within the control of the air carrier.
        ``(6) An assurance that if requested by the family of a 
    passenger, any possession of the passenger within the control of 
    the air carrier (regardless of its condition) will be returned to 
    the family unless the possession is needed for the accident 
    investigation or any criminal investigation.
        ``(7) An assurance that any unclaimed possession of a passenger 
    within the control of the air carrier will be retained by the air 
    carrier for at least 18 months.
        ``(8) An assurance that the family of each passenger will be 
    consulted about construction by the air carrier of any monument to 
    the passengers, including any inscription on the monument.
        ``(9) An assurance that the treatment of the families of 
    nonrevenue passengers (and any other victim of the accident) will 
    be the same as the treatment of the families of revenue passengers.
        ``(10) An assurance that the air carrier will work with any 
    organization designated under section 1136(a)(2) of this title on 
    an ongoing basis to ensure that families of passengers receive an 
    appropriate level of services and assistance following each 
    accident.
        ``(11) An assurance that the air carrier will provide 
    reasonable compensation to any organization designated under 
    section 1136(a)(2) of this title for services provided by the 
    organization.
        ``(12) An assurance that the air carrier will assist the family 
    of a passenger in traveling to the location of the accident and 
    provide for the physical care of the family while the family is 
    staying at such location.
        ``(13) An assurance that the air carrier will commit sufficient 
    resources to carry out the plan.
    ``(c) Certificate Requirement.--After the date that is 6 months 
after the date of the enactment of this section, the Secretary may not 
approve an application for a certificate of public convenience and 
necessity under section 41102 of this title unless the applicant has 
included as part of such application a plan that meets the requirements 
of subsection (b).
    ``(d) Limitation on Liability.--An air carrier shall not be liable 
for damages in any action brought in a Federal or State court arising 
out of the performance of the air carrier in preparing or providing a 
passenger list pursuant to a plan submitted by the air carrier under 
subsection (b), unless such liability was caused by conduct of the air 
carrier which was grossly negligent or which constituted intentional 
misconduct.
    ``(e) Aircraft Accident and Passenger Defined.--In this section, 
the terms `aircraft accident' and `passenger' have the meanings such 
terms have in section 1136 of this title.''.
    (b) Conforming Amendment.--The table of sections for such chapter 
is amended by adding at the end the following:
``41113. Plans to address needs of families of passengers involved in 
          aircraft accidents.''.

SEC. 704. ESTABLISHMENT OF TASK FORCE.

    (a) Establishment.--The Secretary of Transportation, in cooperation 
with the National Transportation Safety Board, the Federal Emergency 
Management Agency, the American Red Cross, air carriers, and families 
which have been involved in aircraft accidents shall establish a task 
force consisting of representatives of such entities and families, 
representatives of air carrier employees, and representatives of such 
other entities as the Secretary considers appropriate.
    (b) Guidelines and Recommendations.--The task force established 
pursuant to subsection (a) shall develop--
        (1) guidelines to assist air carriers in responding to aircraft 
    accidents;
        (2) recommendations on methods to ensure that attorneys and 
    representatives of media organizations do not intrude on the 
    privacy of families of passengers involved in an aircraft accident;
        (3) recommendations on methods to ensure that the families of 
    passengers involved in an aircraft accident who are not citizens of 
    the United States receive appropriate assistance;
        (4) recommendations on methods to ensure that State mental 
    health licensing laws do not act to prevent out-of-state mental 
    health workers from working at the site of an aircraft accident or 
    other related sites;
        (5) recommendations on the extent to which military experts and 
    facilities can be used to aid in the identification of the remains 
    of passengers involved in an aircraft accident; and
        (6) recommendations on methods to improve the timeliness of the 
    notification provided by air carriers to the families of passengers 
    involved in an aircraft accident, including--
            (A) an analysis of the steps that air carriers would have 
        to take to ensure that an accurate list of passengers on board 
        the aircraft would be available within 1 hour of the accident 
        and an analysis of such steps to ensure that such list would be 
        available within 3 hours of the accident;
            (B) an analysis of the added costs to air carriers and 
        travel agents that would result if air carriers were required 
        to take the steps described in subparagraph (A);
            (C) an analysis of any inconvenience to passengers, 
        including flight delays, that would result if air carriers were 
        required to take the steps described in subparagraph (A); and
            (D) an analysis of the implications for personal privacy 
        that would result if air carriers were required to take the 
        steps described in subparagraph (A).
    (c) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Secretary shall transmit to Congress a report 
containing the model plan and recommendations developed by the task 
force under subsection (b).

SEC. 705. LIMITATION ON STATUTORY CONSTRUCTION.

    Nothing in this title or any amendment made by this title may be 
construed as limiting the actions that an air carrier may take, or the 
obligations that an air carrier may have, in providing assistance to 
the families of passengers involved in an aircraft accident.

                 TITLE VIII--AIRPORT REVENUE PROTECTION

SEC. 801. SHORT TITLE.

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

SEC. 802. FINDINGS; PURPOSE.

    (a) In General.--Congress finds that--
        (1) section 47107 of title 49, United States Code, prohibits 
    the diversion of certain revenue generated by a public airport as a 
    condition of receiving a project grant;
        (2) a grant recipient that uses airport revenue for purposes 
    that are not airport related in a manner inconsistent with chapter 
    471 of title 49, United States Code, illegally diverts airport 
    revenues;
        (3) any diversion of airport revenues in violation of the 
    condition referred to in paragraph (1) undermines the interest of 
    the United States in promoting a strong national air transportation 
    system that is responsive to the needs of airport users;
        (4) the Secretary and the Administrator have not enforced 
    airport revenue diversion rules adequately and must have additional 
    regulatory tools to increase enforcement efforts; and
        (5) sponsors who have been found to have illegally diverted 
    airport revenues--
            (A) have not reimbursed or made restitution to airports in 
        a timely manner; and
            (B) must be encouraged to do so.
    (b) Purpose.--The purpose of this title is to ensure that airport 
users are not burdened with hidden taxation for unrelated municipal 
services and activities by--
        (1) eliminating the ability of any State or political 
    subdivision thereof that is a recipient of a project grant to 
    divert airport revenues for purposes that are not related to an 
    airport, in violation of section 47107 of title 49, United States 
    Code;
        (2) imposing financial reporting requirements that are designed 
    to identify instances of illegal diversions referred to in 
    paragraph (1);
        (3) establishing a statute of limitations for airport revenue 
    diversion actions;
        (4) clarifying limitations on revenue diversion that are 
    permitted under chapter 471 of title 49, United States Code; and
        (5) establishing clear penalties and enforcement mechanisms for 
    identifying and prosecuting airport revenue diversion.

SEC. 803. DEFINITIONS.

    For purposes of this title, the following definitions apply:
        (1) Administrator.--The term ``Administrator'' means the 
    Administrator of the Federal Aviation Administration.
        (2) Airport.--The term ``airport'' has the meaning provided 
    that term in section 47102(2) of title 49, United States Code.
        (3) Project grant.--The term ``project grant'' has the meaning 
    provided that term in section 47102(14) of title 49, United States 
    Code.
        (4) Secretary.--The term ``Secretary'' means the Secretary of 
    Transportation.
        (5) Sponsor.--The term ``sponsor'' has the meaning provided 
    that term in section 47102(19) of title 49, United States Code.

SEC. 804. RESTRICTION ON USE OF AIRPORT REVENUES.

    (a) In General.--Subchapter I of chapter 471, as amended by section 
142 of this Act, is further amended by adding after section 47132 the 
following:

``Sec. 47133. Restriction on use of revenues

    ``(a) Prohibition.--Local taxes on aviation fuel (except taxes in 
effect on December 30, 1987) or the revenues generated by an airport 
that is the subject of Federal assistance may not be expended for any 
purpose other than the capital or operating costs of--
        ``(1) the airport;
        ``(2) the local airport system; or
        ``(3) any other local facility that is owned or operated by the 
    person or entity that owns or operates the airport that is directly 
    and substantially related to the air transportation of passengers 
    or property.
    ``(b) Exceptions.--Subsection (a) shall not apply if a provision 
enacted not later than September 2, 1982, in a law controlling 
financing by the airport owner or operator, or a covenant or assurance 
in a debt obligation issued not later than September 2, 1982, by the 
owner or operator, provides that the revenues, including local taxes on 
aviation fuel at public airports, from any of the facilities of the 
owner or operator, including the airport, be used to support not only 
the airport but also the general debt obligations or other facilities 
of the owner or operator.
    ``(c) Rule of Construction.--Nothing in this section may be 
construed to prevent the use of a State tax on aviation fuel to support 
a State aviation program or the use of airport revenue on or off the 
airport for a noise mitigation purpose.''.
    (b) Penalties.--Section 46301(a)(5) is amended to read as follows:
        ``(5) Penalty for diversion of aviation revenues.--The amount 
    of a civil penalty assessed under this section for a violation of 
    section 47107(b) of this title (or any assurance made under such 
    section) or section 47133 of this title may be increased above the 
    otherwise applicable maximum amount under this section to an amount 
    not to exceed 3 times the amount of revenues that are used in 
    violation of such section.''.
    (c) Conforming Amendment.--The table of sections for such 
subchapter is amended by inserting after the item relating to section 
47132, as added by section 142 of this Act, the following:
``47133. Restriction on use of revenues.''.

SEC. 805. REGULATIONS; AUDITS AND ACCOUNTABILITY.

    (a) In General.--Section 47107 is amended by adding at the end the 
following:
    ``(m) Audit Certification.--
        ``(1) In general.--The Secretary of Transportation, acting 
    through the Administrator of the Federal Aviation Administration, 
    shall promulgate regulations that require a recipient of a project 
    grant (or any other recipient of Federal financial assistance that 
    is provided for an airport) to include as part of an annual audit 
    conducted under sections 7501 through 7505 of title 31, a review 
    and opinion of the review concerning the funding activities with 
    respect to an airport that is the subject of the project grant (or 
    other Federal financial assistance) and the sponsors, owners, or 
    operators (or other recipients) involved.
        ``(2) Content of review.--A review conducted under paragraph 
    (1) shall provide reasonable assurances that funds paid or 
    transferred to sponsors are paid or transferred in a manner 
    consistent with the applicable requirements of this chapter and any 
    other applicable provision of law (including regulations 
    promulgated by the Secretary or the Administrator).
        ``(3) Requirements for audit report.--The report submitted to 
    the Secretary under this subsection shall include a specific 
    determination and opinion regarding the appropriateness of the 
    disposition of airport funds paid or transferred to a sponsor.
    ``(n) Recovery of Illegally Diverted Funds.--
        ``(1) In general.--Not later than 180 days after the issuance 
    of an audit or any other report that identifies an illegal 
    diversion of airport revenues (as determined under subsections (b) 
    and (l) and section 47133), the Secretary, acting through the 
    Administrator, shall--
            ``(A) review the audit or report;
            ``(B) perform appropriate factfinding; and
            ``(C) conduct a hearing and render a final determination 
        concerning whether the illegal diversion of airport revenues 
        asserted in the audit or report occurred.
        ``(2) Notification.--Upon making such a finding, the Secretary, 
    acting through the Administrator, shall provide written 
    notification to the sponsor and the airport of--
            ``(A) the finding; and
            ``(B) the obligations of the sponsor to reimburse the 
        airport involved under this paragraph.
        ``(3) Administrative action.--The Secretary may withhold any 
    amount from funds that would otherwise be made available to the 
    sponsor, including funds that would otherwise be made available to 
    a State, municipality, or political subdivision thereof (including 
    any multimodal transportation agency or transit authority of which 
    the sponsor is a member entity) as part of an apportionment or 
    grant made available pursuant to this title, if the sponsor--
            ``(A) receives notification that the sponsor is required to 
        reimburse an airport; and
            ``(B) has had an opportunity to reimburse the airport, but 
        has failed to do so.
        ``(4) Civil action.--If a sponsor fails to pay an amount 
    specified under paragraph (3) during the 180-day period beginning 
    on the date of notification and the Secretary is unable to withhold 
    a sufficient amount under paragraph (3), the Secretary, acting 
    through the Administrator, may initiate a civil action under which 
    the sponsor shall be liable for civil penalty in an amount equal to 
    the illegal diversion in question plus interest (as determined 
    under subsection (o)).
        ``(5) Disposition of penalties.--
            ``(A) Amounts withheld.--The Secretary or the Administrator 
        shall transfer any amounts withheld under paragraph (3) to the 
        Airport and Airway Trust Fund.
            ``(B) Civil penalties.--With respect to any amount 
        collected by a court in a civil action under paragraph (4), the 
        court shall cause to be transferred to the Airport and Airway 
        Trust Fund any amount collected as a civil penalty under 
        paragraph (4).
        ``(6) Reimbursement.--The Secretary, acting through the 
    Administrator, shall, as soon as practicable after any amount is 
    collected from a sponsor under paragraph (4), cause to be 
    transferred from the Airport and Airway Trust Fund to an airport 
    affected by a diversion that is the subject of a civil action under 
    paragraph (4), reimbursement in an amount equal to the amount that 
    has been collected from the sponsor under paragraph (4) (including 
    any amount of interest calculated under subsection (o)).
        ``(7) Statute of limitations.--No person may bring an action 
    for the recovery of funds illegally diverted in violation of this 
    section (as determined under subsections (b) and (l)) or section 
    47133 after the date that is 6 years after the date on which the 
    diversion occurred.
    ``(o) Interest.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    Secretary, acting through the Administrator, shall charge a minimum 
    annual rate of interest on the amount of any illegal diversion of 
    revenues referred to in subsection (n) in an amount equal to the 
    average investment interest rate for tax and loan accounts of the 
    Department of the Treasury (as determined by the Secretary of the 
    Treasury) for the applicable calendar year, rounded to the nearest 
    whole percentage point.
        ``(2) Adjustment of interest rates.--If, with respect to a 
    calendar quarter, the average investment interest rate for tax and 
    loan accounts of the Department of the Treasury exceeds the average 
    investment interest rate for the immediately preceding calendar 
    quarter, rounded to the nearest whole percentage point, the 
    Secretary of the Treasury may adjust the interest rate charged 
    under this subsection in a manner that reflects that change.
        ``(3) Accrual.--Interest assessed under subsection (n) shall 
    accrue from the date of the actual illegal diversion of revenues 
    referred to in subsection (n).
        ``(4) Determination of applicable rate.--The applicable rate of 
    interest charged under paragraph (1) shall--
            ``(A) be the rate in effect on the date on which interest 
        begins to accrue under paragraph (3); and
            ``(B) remain at a rate fixed under subparagraph (A) during 
        the duration of the indebtedness.
    ``(p) Payment by Airport to Sponsor.--If, in the course of an audit 
or other review conducted under this section, the Secretary or the 
Administrator determines that an airport owes a sponsor funds as a 
result of activities conducted by the sponsor or expenditures by the 
sponsor for the benefit of the airport, interest on that amount shall 
be determined in the same manner as provided in paragraphs (1) through 
(4) of subsection (o), except that the amount of any interest assessed 
under this subsection shall be determined from the date on which the 
Secretary or the Administrator makes that determination.''.
    (b) Revision of Policies and Procedures; Deadlines.--
        (1) In general.--Not later than 90 days after the date of the 
    enactment of this Act, the Secretary, acting through the 
    Administrator, shall revise the policies and procedures established 
    under section 47107(l) of title 49, United States Code, to take 
    into account the amendments made to that section by this title.
        (2) Statute of limitations.--Section 47107(l) is amended by 
    adding at the end the following:
        ``(5) Statute of limitations.--In addition to the statute of 
    limitations specified in subsection (n)(7), with respect to project 
    grants made under this chapter--
            ``(A) any request by a sponsor to any airport for 
        additional payments for services conducted off of the airport 
        or for reimbursement for capital contributions or operating 
        expenses shall be filed not later than 6 years after the date 
        on which the expense is incurred; and
            ``(B) any amount of airport funds that are used to make a 
        payment or reimbursement as described in subparagraph (A) after 
        the date specified in that subparagraph shall be considered to 
        be an illegal diversion of airport revenues that is subject to 
        subsection (n).''.

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

    Section 9502 of the Internal Revenue Code of 1986 is amended--
        (1) by striking ``and'' at the end of subsection (b)(3);
        (2) by striking the period at the end of subsection (b)(4) and 
    inserting ``, and''; and
        (3) by adding at the end of subsection (b) the following:
        ``(5) amounts determined by the Secretary of the Treasury to be 
    equivalent to the amounts of civil penalties collected under 
    section 47107(n) of title 49, United States Code.''; and
        (4) by adding at the end of subsection (d) the following:
        ``(5) Transfers from the airport and airway trust fund on 
    account of certain airports.--The Secretary of the Treasury may 
    transfer from the Airport and Airway Trust Fund to the Secretary of 
    Transportation or the Administrator of the Federal Aviation 
    Administration an amount to make a payment to an airport affected 
    by a diversion that is the subject of an administrative action 
    under paragraph (3) or a civil action under paragraph (4) of 
    section 47107(n) of title 49, United States Code.''.

               TITLE IX--METROPOLITAN WASHINGTON AIRPORTS

SEC. 901. SHORT TITLE.

    This title may be cited as the ``Metropolitan Washington Airports 
Amendments Act of 1996''.

SEC. 902. USE OF LEASED PROPERTY.

    Section 6005(c)(2) of the Metropolitan Washington Airports Act of 
1986 (49 U.S.C. App. 2454(c)(2)) is amended by inserting before the 
period at the end of the second sentence the following: ``which are not 
inconsistent with the needs of aviation''.

SEC. 903. BOARD OF DIRECTORS.

    (a) Appointment of Additional Members.--Section 6007(e)(1) of the 
Metropolitan Washington Airports Act of 1986 (49 U.S.C. App. 
2456(e)(1)) is amended--
        (1) in the matter preceding subparagraph (A) by striking ``11'' 
    and inserting ``13'';
        (2) in subparagraph (D) by striking ``one member'' and 
    inserting ``three members''.
    (b) Restrictions.--Section 6007(e)(2) of the Metropolitan 
Washington Airports Act of 1986 (49 U.S.C. App. 2456(e)(2)) is amended 
by striking ``except that'' and all that follows through the period and 
inserting ``except that the members appointed by the President shall be 
registered voters of States other than Maryland, Virginia, or the 
District of Columbia.''.
    (c) Terms.--Section 6007(e)(3) of the Metropolitan Washington 
Airports Act of 1986 (49 U.S.C. App. 2456(e)(3)) is amended--
        (1) in subparagraph (B) by striking ``and'' at the end;
        (2) in subparagraph (C) by striking the period at the end and 
    inserting ``; and''; and
        (3) by adding at the end the following:
            ``(D) by the President after the date of the enactment of 
        this subparagraph, 1 shall be appointed for 4 years.
    A member may serve after the expiration of that member's term until 
    a successor has taken office.''.
    (d) Vacancies.--Section 6007(e) of the Metropolitan Washington 
Airports Act of 1986 (49 U.S.C. App. 2456(e)) is amended by 
redesignating paragraphs (4) and (5) as paragraphs (8) and (9), 
respectively, and by inserting after paragraph (3) the following:
        ``(4) Vacancies.--A vacancy in the board of directors shall be 
    filled in the manner in which the original appointment was made. 
    Any member appointed to fill a vacancy occurring before the 
    expiration of the term for which the member's predecessor was 
    appointed shall be appointed only for the remainder of such 
    term.''.
    (e) Political Parties of Presidential Appointees.--Section 6007(e) 
of the Metropolitan Washington Airports Act of 1986 (49 U.S.C. App. 
2456(e)) is amended by inserting after paragraph (4), as inserted by 
subsection (d) of this section, the following:
        ``(5) Political parties of presidential appointees.--Not more 
    than 2 of the members of the board appointed by the President may 
    be of the same political party.''.
    (f) Duties of Presidential Appointees.--Section 6007(e) of the 
Metropolitan Washington Airports Act of 1986 (49 U.S.C. App. 2456(e)) 
is amended by inserting after paragraph (5), as inserted by subsection 
(e) of this section, the following:
        ``(6) Duties of presidential appointees.--In carrying out their 
    duties on the board, members of the board appointed by the 
    President shall ensure that adequate consideration is given to the 
    national interest.''.
    (g) Deadline for Presidential Appointments.--Section 6007(e) of the 
Metropolitan Washington Airports Act of 1986 (49 U.S.C. App. 2456(e)) 
is amended by inserting after paragraph (6), as inserted by subsection 
(f) of this section, the following:
        ``(7) Deadline for presidential appointments.--
            ``(A) Deadline.--The members to be appointed to the board 
        by the President under section 6007(e)(1)(D) shall be appointed 
        on or before September 30, 1997.
            ``(B) Applicability of limitations.--If the deadline of 
        subparagraph (A) is not met, the Secretary and the Airports 
        Authority shall be subject to the limitations described in 
        subsection (i) for the period beginning on October 1, 1997, and 
        ending on the first day on which all of the members referred to 
        in subparagraph (A) have been appointed.''.
    (h) Required Number of Votes.--Section 6007(e)(9) of the 
Metropolitan Washington Airports Act of 1986 (49 U.S.C. App. 
2456(e)(9)), as redesignated by subsection (d) of this section, is 
amended by striking ``Seven'' and inserting ``Eight''.

SEC. 904. TERMINATION OF BOARD OF REVIEW.

    (a) In General.--Section 6007 of the Metropolitan Washington 
Airports Act of 1986 (49 U.S.C. App. 2456) is amended by striking 
subsections (f) and (h) and redesignating subsections (g) and (i) as 
subsections (f) and (g), respectively.
    (b) Staff.--Section 6007 of the Metropolitan Washington Airports 
Act of 1986 (49 U.S.C. App. 2456) is amended--
        (1) by inserting paragraph (8) of subsection (f), as in effect 
    before the amendment made by subsection (a) of this section, after 
    subsection (g), as redesignated by such subsection (a);
        (2) by moving such paragraph 2 ems to the left and 
    redesignating such paragraph as subsection (h); and
        (3) in subsection (h), as so redesignated--
            (A) in the first sentence by striking ``The Board of 
        Review'' and inserting ``To assist the Secretary in carrying 
        out this Act, the Secretary''; and
            (B) in the second sentence by striking ``Board'' and 
        inserting ``Secretary''.
    (c) Conforming Amendments.--The Metropolitan Washington Airports 
Act of 1986 (49 U.S.C. App. 2451 et seq.) is amended--
        (1) in section 6009(b) by striking ``or by reason'' and all 
    that follows before the period; and
        (2) in section 6011 by striking ``Except as provided in section 
    6007(h), if'' and inserting ``If''.
    (d) Protection of Certain Actions.--Actions taken by the 
Metropolitan Washington Airports Authority and required to be submitted 
to the Board of Review pursuant to section 6007(f)(4) of the 
Metropolitan Washington Airports Act of 1986 before the date of the 
enactment of this Act shall remain in effect and shall not be set aside 
solely by reason of a judicial order invalidating certain functions of 
the Board of Review.

SEC. 905. LIMITATIONS.

    Section 6007 of the Metropolitan Washington Airports Act of 1986 
(49 U.S.C. App. 2456) is further amended by adding at the end the 
following:
    ``(i) Limitations.--After October 1, 2001--
        ``(1) the Secretary may not approve an application of the 
    Airports Authority for an airport development project grant under 
    subchapter I of chapter 471 of title 49, United States Code; and
        ``(2) the Secretary may not approve an application of the 
    Airports Authority to impose a passenger facility fee under section 
    40117 of such title.''.

SEC. 906. USE OF DULLES AIRPORT ACCESS HIGHWAY.

    The Metropolitan Washington Airports Act of 1986 (49 U.S.C. App. 
2451 et seq.) is further amended by adding at the end the following:

``SEC. 6013. USE OF DULLES AIRPORT ACCESS HIGHWAY.

    ``(a) Restrictions.--Except as provided by subsection (b), the 
Airports Authority shall continue in effect and enforce paragraphs (1) 
and (2) of section 4.2 of the Metropolitan Washington Airports 
Regulations, as in effect on February 1, 1995.
    ``(b) Enforcement.--The district courts of the United States shall 
have jurisdiction to compel the Airports Authority and its officers and 
employees to comply with the requirements of this section. An action 
may be brought on behalf of the United States by the Attorney General 
or by any aggrieved party.''.

SEC. 907. EFFECT OF JUDICIAL ORDER.

    The Metropolitan Washington Airports Act of 1986 (49 U.S.C. App. 
2451 et seq.) is further amended by adding at the end the following:

``SEC. 6014. EFFECT OF JUDICIAL ORDER.

    ``If any provision of the Metropolitan Washington Airports 
Amendments Act of 1996 or the amendments made by such Act (or the 
application of that provision to any person, circumstance, or venue) is 
held invalid by a judicial order, on the day after the date of the 
issuance of such order, and thereafter, the Secretary of Transportation 
and the Metropolitan Washington Airports Authority shall be subject to 
the limitations described in section 6007(i) of this Act.''.

SEC. 908. AMENDMENT OF LEASE.

    The Secretary of Transportation shall amend the lease entered into 
with the Metropolitan Washington Airports Authority under section 
6005(a) of the Metropolitan Washington Airports Authority Act of 1986 
to secure the Airports Authority's consent to the amendments made to 
such Act by this title.

SEC. 909. SENSE OF THE SENATE.

    It is the sense of the Senate that the Metropolitan Washington 
Airports Authority--
        (1) should not provide any reserved parking areas free of 
    charge to Members of Congress, other Government officials, or 
    diplomats at Washington National Airport or Washington Dulles 
    International Airport; and
        (2) should establish a parking policy for such airports that 
    provides equal access to the public, and does not provide 
    preferential parking privileges to Members of Congress, other 
    Government officials, or diplomats.

    TITLE X--EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURES

SEC. 1001. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURES.

    (a) Extension of Expenditure Authority.--Paragraph (1) of section 
9502(d) of the Internal Revenue Code of 1986 is amended by striking 
``October 1, 1996'' and inserting ``October 1, 1998''.
    (b) Extension of Trust Fund Purposes.--Subparagraph (A) of section 
9502(d)(1) of such Code is amended by inserting before the semicolon at 
the end ``or the Federal Aviation Reauthorization Act of 1996''.

          TITLE XI--FAA RESEARCH, ENGINEERING, AND DEVELOPMENT

SEC. 1101. SHORT TITLE.

    This title may be cited as the ``FAA Research, Engineering, and 
Development Management Reform Act of 1996''.

SEC. 1102. AUTHORIZATION OF APPROPRIATIONS.

    Section 48102(a) is amended--
        (1) by striking ``and'' at the end of paragraph (1)(J);
        (2) by striking the period at the end of paragraph (2)(J) and 
    inserting in lieu thereof ``; and''; and
        (3) by adding at the end the following:
        ``(3) for fiscal year 1997--
            ``(A) $13,660,000 for system development and infrastructure 
        projects and activities;
            ``(B) $34,889,000 for capacity and air traffic management 
        technology projects and activities;
            ``(C) $19,000,000 for communications, navigation, and 
        surveillance projects and activities;
            ``(D) $13,000,000 for weather projects and activities;
            ``(E) $5,200,000 for airport technology projects and 
        activities;
            ``(F) $36,504,000 for aircraft safety technology projects 
        and activities;
            ``(G) $57,055,000 for system security technology projects 
        and activities;
            ``(H) $23,504,000 for human factors and aviation medicine 
        projects and activities;
            ``(I) $3,600,000 for environment and energy projects and 
        activities; and
            ``(J) $2,000,000 for innovative/cooperative research 
        projects and activities.''.

SEC. 1103. RESEARCH PRIORITIES.

    Section 48102(b) is amended--
        (1) by redesignating paragraph (2) as paragraph (3); and
        (2) by striking ``Availability for Research.--(1)'' and 
    inserting in lieu thereof ``Research Priorities.--(1) The 
    Administrator shall consider the advice and recommendations of the 
    research advisory committee established by section 44508 of this 
    title in establishing priorities among major categories of research 
    and development activities carried out by the Federal Aviation 
    Administration.
    ``(2)''.

SEC. 1104. RESEARCH ADVISORY COMMITTEE.

    Section 44508(a)(1) is amended--
        (1) by striking ``and'' at the end of subparagraph (B);
        (2) by striking the period at the end of subparagraph (C) and 
    inserting in lieu thereof ``; and''; and
        (3) by inserting after subparagraph (C) the following:
        ``(D) annually review the allocation made by the Administrator 
    of the amounts authorized by section 48102(a) of this title among 
    the major categories of research and development activities carried 
    out by the Administration and provide advice and recommendations to 
    the Administrator on whether such allocation is appropriate to meet 
    the needs and objectives identified under subparagraph (A).''.

SEC. 1105. NATIONAL AVIATION RESEARCH PLAN.

    Section 44501(c) is amended--
        (1) in paragraph (2)(A) by striking ``15-year'' and inserting 
    in lieu thereof ``5-year'';
        (2) by amending subparagraph (B) to read as follows:
    ``(B) The plan shall--
        ``(i) provide estimates by year of the schedule, cost, and work 
    force levels for each active and planned major research and 
    development project under sections 40119, 44504, 44505, 44507, 
    44509, 44511-44513, and 44912 of this title, including activities 
    carried out under cooperative agreements with other Federal 
    departments and agencies;
        ``(ii) specify the goals and the priorities for allocation of 
    resources among the major categories of research and development 
    activities, including the rationale for the priorities identified;
        ``(iii) identify the allocation of resources among long-term 
    research, near-term research, and development activities; and
        ``(iv) highlight the research and development activities that 
    address specific recommendations of the research advisory committee 
    established under section 44508 of this title, and document the 
    recommendations of the committee that are not accepted, specifying 
    the reasons for nonacceptance.''; and
        (3) in paragraph (3) by inserting ``, including a description 
    of the dissemination to the private sector of research results and 
    a description of any new technologies developed'' after ``during 
    the prior fiscal year''.

                  TITLE XII--MISCELLANEOUS PROVISIONS

SEC. 1201. PURCHASE OF HOUSING UNITS.

    Section 40110 is amended--
        (1) by redesignating subsection (b) as subsection (c); and
        (2) by inserting after subsection (a) the following:
    ``(b) Purchase of Housing Units.--
        ``(1) Authority.--In carrying out this part, the Administrator 
    may purchase a housing unit (including a condominium or a housing 
    unit in a building owned by a cooperative) that is located outside 
    the contiguous United States if the cost of the unit is $300,000 or 
    less.
        ``(2) Adjustments for inflation.--For fiscal years beginning 
    after September 30, 1997, the Administrator may adjust the dollar 
    amount specified in paragraph (1) to take into account increases in 
    local housing costs.
        ``(3) Continuing obligations.--Notwithstanding section 1341 of 
    title 31, the Administrator may purchase a housing unit under 
    paragraph (1) even if there is an obligation thereafter to pay 
    necessary and reasonable fees duly assessed upon such unit, 
    including fees related to operation, maintenance, taxes, and 
    insurance.
        ``(4) Certification to congress.--The Administrator may 
    purchase a housing unit under paragraph (1) only if, at least 30 
    days before completing the purchase, the Administrator transmits to 
    the Committee on Transportation and Infrastructure of the House of 
    Representatives and the Committee on Commerce, Science, and 
    Transportation of the Senate a report containing--
            ``(A) a description of the housing unit and its price;
            ``(B) a certification that the price does not exceed the 
        median price of housing units in the area; and
            ``(C) a certification that purchasing the housing unit is 
        the most cost-beneficial means of providing necessary 
        accommodations in carrying out this part.
        ``(5) Payment of fees.--The Administrator may pay, when due, 
    fees resulting from the purchase of a housing unit under this 
    subsection from any amounts made available to the Administrator.''.

SEC. 1202. CLARIFICATION OF PASSENGER FACILITY REVENUES AS CONSTITUTING 
              TRUST FUNDS.

    Section 40117(g) is amended by adding at the end the following:
    ``(4) Passenger facility revenues that are held by an air carrier 
or an agent of the carrier after collection of a passenger facility fee 
constitute a trust fund that is held by the air carrier or agent for 
the beneficial interest of the eligible agency imposing the fee. Such 
carrier or agent holds neither legal nor equitable interest in the 
passenger facility revenues except for any handling fee or retention of 
interest collected on unremitted proceeds as may be allowed by the 
Secretary.''.

SEC. 1203. AUTHORITY TO CLOSE AIRPORT LOCATED NEAR CLOSED OR REALIGNED 
              MILITARY BASE.

    Notwithstanding any other provision of a law, rule, or grant 
assurance, an airport that is not a commercial service airport may be 
closed by its sponsor without any obligation to repay grants made under 
chapter 471 of title 49, United States Code, the Airport and Airway 
Improvement Act of 1982, or any other law if the airport is located 
within 2 miles of a United States Army depot which has been closed or 
realigned; except that in the case of disposal of the land associated 
with the airport, the part of the proceeds from the disposal that is 
proportional to the Government's share of the cost of acquiring the 
land shall be paid to the Secretary of Transportation for deposit in 
the Airport and Airway Trust Fund established under section 9502 of the 
Internal Revenue Code of 1986 (26 U.S.C. 9502).

SEC. 1204. GADSDEN AIR DEPOT, ALABAMA.

    (a) Authority To Grant Waivers.--Notwithstanding section 16 of the 
Federal Airport Act (as in effect on May 4, 1949), the Secretary is 
authorized, subject to the provisions of section 47153 of title 49, 
United States Code, and the provisions of subsection (b) of this 
section, to waive any of the terms contained in the deed of conveyance 
dated May 4, 1949, under which the United States conveyed certain 
property to the city of Gadsden, Alabama, for airport purposes.
    (b) Conditions.--Any waiver granted under subsection (a) shall be 
subject to the following conditions:
        (1) The city of Gadsden, Alabama, shall agree that, in 
    conveying any interest in the property which the United States 
    conveyed to the city by a deed described in subsection (a), the 
    city will receive an amount for such interest which is equal to the 
    fair market value of such interest (as determined pursuant to 
    regulations issued by the Secretary).
        (2) Any such amount so received by the city shall be used by 
    the city for the development, improvement, operation, or 
    maintenance of a public airport, lands (including any improvements 
    thereto) which produce revenues that are used for airport 
    development purposes, or both.

SEC. 1205. REGULATIONS AFFECTING INTRASTATE AVIATION IN ALASKA.

    In modifying regulations contained in title 14, Code of Federal 
Regulations, in a manner affecting intrastate aviation in Alaska, the 
Administrator of the Federal Aviation Administration shall consider the 
extent to which Alaska is not served by transportation modes other than 
aviation, and shall establish such regulatory distinctions as the 
Administrator considers appropriate.

SEC. 1206. WESTCHESTER COUNTY AIRPORT, NEW YORK.

    Notwithstanding sections 47107(b) and 47133 of title 49, United 
States Code, and any other law, regulation, or grant assurance, all 
fees received by Westchester County Airport in the State of New York 
may be paid into the treasury of Westchester County pursuant to section 
119.31 of the Westchester County Charter if the Secretary finds that 
the expenditures from such treasury for the capital and operating costs 
of the Airport after December 31, 1990, have been and will be equal to 
or greater than the fees that such treasury receives from the Airport.

SEC. 1207. BEDFORD AIRPORT, PENNSYLVANIA.

    If the Administrator of the Federal Aviation Administration 
decommissions an instrument landing system in Pennsylvania, the 
Administrator may transfer and install the system at Bedford Airport, 
Pennsylvania.

SEC. 1208. WORCESTER MUNICIPAL AIRPORT, MASSACHUSETTS.

    The Administrator of the Federal Aviation Administration shall take 
such actions as may be necessary to improve the safety of aircraft 
landing at Worcester Municipal Airport, Massachusetts, including, if 
appropriate, providing air traffic radar service to such airport from 
the Providence Approach Radar Control in Coventry, Rhode Island.

SEC. 1209. CENTRAL FLORIDA AIRPORT, SANFORD, FLORIDA.

    The Administrator of the Federal Aviation Administration shall take 
such actions as may be necessary to improve the safety of aircraft 
landing at Central Florida Airport, Sanford, Florida, including, if 
appropriate, providing a new instrument landing system on Runway 27R.

SEC. 1210. AIRCRAFT NOISE OMBUDSMAN.

    Section 106, as amended by section 230 of this Act, is further 
amended by adding at the end the following:
    ``(q) Aircraft Noise Ombudsman.--
        ``(1) Establishment.--There shall be in the Administration an 
    Aircraft Noise Ombudsman.
        ``(2) General duties and responsibilities.--The Ombudsman 
    shall--
            ``(A) be appointed by the Administrator;
            ``(B) serve as a liaison with the public on issues 
        regarding aircraft noise; and
            ``(C) be consulted when the Administration proposes changes 
        in aircraft routes so as to minimize any increases in aircraft 
        noise over populated areas.
        ``(3) Number of full-time equivalent employees.--The 
    appointment of an Ombudsman under this subsection shall not result 
    in an increase in the number of full-time equivalent employees in 
    the Administration.''.

SEC. 1211. SPECIAL RULE FOR PRIVATELY OWNED RELIEVER AIRPORTS.

    Section 47109 is amended by adding at the end the following:
    ``(c) Special Rule for Privately Owned Reliever Airports.--If a 
privately owned reliever airport contributes any lands, easements, or 
rights-of-way to carry out a project under this subchapter, the current 
fair market value of such lands, easements, or rights-of-way shall be 
credited toward the non-Federal share of allowable project costs.''.

SEC. 1212. SENSE OF THE SENATE REGARDING THE FUNDING OF THE FEDERAL 
              AVIATION ADMINISTRATION.

    (a) Findings.--The Senate finds that--
        (1) Congress is responsible for ensuring that the financial 
    needs of the Federal Aviation Administration, the agency that 
    performs the critical function of overseeing the Nation's air 
    traffic control system and ensuring the safety of air travelers in 
    the United States, are met;
        (2) aviation excise taxes that constitute the Airport and 
    Airway Trust Fund, which provides most of the funding for the 
    Federal Aviation Administration, have expired;
        (3) the surplus in the Airport and Airway Trust Fund will be 
    spent by the Federal Aviation Administration by December 1996;
        (4) the existing system of funding the Federal Aviation 
    Administration will not provide the agency with sufficient short-
    term or long-term funding;
        (5) this Act creates a sound process to review Federal Aviation 
    Administration funding and develop a funding system to meet the 
    Federal Aviation Administration's long-term funding needs; and
        (6) without immediate action by Congress to ensure that the 
    Federal Aviation Administration's financial needs are met, air 
    travelers' confidence in the system could be undermined.
    (b) Sense of the Senate.--It is the sense of the Senate that there 
should be an immediate enactment of an 18-month reinstatement of the 
aviation excise taxes to provide short-term funding for the Federal 
Aviation Administration.

SEC. 1213. RURAL AIR FARE STUDY.

    (a) In General.--The Secretary shall conduct a study to--
        (1) compare air fares paid (calculated as both actual and 
    adjusted air fares) for air transportation on flights conducted by 
    commercial air carriers--
            (A) between--
                (i) nonhub airports located in small communities; and
                (ii) large hub airports; and
            (B) between large hub airports;
        (2) analyze--
            (A) the extent to which passenger service that is provided 
        from nonhub airports is provided on--
                (i) regional commuter commercial air carriers; or
                (ii) major air carriers;
            (B) the type of aircraft employed in providing passenger 
        service at nonhub airports; and
            (C) whether there is competition among commercial air 
        carriers with respect to the provision of air service to 
        passengers from nonhub airports.
    (b) Findings.--The Secretary shall include in the report of the 
study conducted under subsection (a) findings concerning--
        (1) whether passengers who use commercial air carriers to and 
    from rural areas (as defined by the Secretary) pay a 
    disproportionately greater price for that transportation than 
    passengers who use commercial air carriers between urban areas (as 
    defined by the Secretary);
        (2) the nature of competition, if any, in rural markets (as 
    defined by the Secretary) for commercial air carriers;
        (3) whether a relationship exists between higher air fares and 
    competition among commercial air carriers for passengers traveling 
    on jet aircraft from small communities (as defined by the 
    Secretary) and, if such a relation exists, the nature of that 
    relationship;
        (4) the number of small communities that have lost air service 
    as a result of the deregulation of commercial air carriers with 
    respect to air fares;
        (5) the number of small communities served by airports with 
    respect to which, after commercial air carrier fares were 
    deregulated, jet aircraft service was replaced by turboprop 
    aircraft service; and
        (6) where such replacement occurred, any corresponding 
    decreases in available seat capacity for consumers at the airports 
    referred to in that subparagraph.
    (c) Report.--Not later than 60 days after the date of the enactment 
of this Act, the Secretary shall submit a final report on the study 
carried out under subsection (a) to the Committee on Commerce, Science, 
and Transportation of the Senate and the Committee on Transportation 
and Infrastructure of the House of Representatives.
    (d) Definitions.--For purposes of this section, the following 
definitions apply:
        (1) Adjusted air fare.--The term ``adjusted air fare'' means an 
    actual air fare that is adjusted for distance traveled by a 
    passenger.
        (2) Air carrier.--The term ``air carrier'' is defined in 
    section 40102(a)(2) of title 49, United States Code.
        (3) Airport.--The term ``airport'' is defined in section 
    40102(9) of such title.
        (4) Commercial air carrier.--The term ``commercial air 
    carrier'' means an air carrier that provides air transportation for 
    commercial purposes (as determined by the Secretary).
        (5) Hub airport.--The term ``hub airport'' is defined in 
    section 41731(a)(2) of such title.
        (6) Large hub airport.--The term ``large hub airport'' shall be 
    defined by the Secretary but the definition may not include a small 
    hub airport, as that term is defined in section 41731(a)(5) of such 
    title.
        (7) Major air carrier.--The term ``major air carrier'' shall be 
    defined by the Secretary.
        (8) Nonhub airport.--The term ``nonhub airport'' is defined in 
    section 41731(a)(4) of such title.
        (9) Regional commuter air carrier.--The term ``regional 
    commuter air carrier'' shall be defined by the Secretary.

SEC. 1214. CARRIAGE OF CANDIDATES IN STATE AND LOCAL ELECTIONS.

    The Administrator of the Federal Aviation Administration shall 
revise section 91.321 of the Administration's regulations (14 C.F.R. 
91.321), relating to the carriage of candidates in Federal elections, 
to make the same or similar rules applicable to the carriage of 
candidates for election to public office in State and local government 
elections.

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

    The Secretary of Transportation, acting through the Administrator 
of the Federal Aviation Administration, shall take such action as may 
be necessary to provide 45 additional days for comment by interested 
persons on the special flight rules in the vicinity of Grand Canyon 
National Park and the Draft Environmental Assessment described in the 
notice of proposed rulemaking issued on July 31, 1996, at 61 Fed. Reg. 
40120 et seq.

SEC. 1216. TRANSFER OF AIR TRAFFIC CONTROL TOWER; CLOSING OF FLIGHT 
              SERVICE STATIONS.

    (a) Hickory, North Carolina Tower.--
        (1) Transfer.--The Administrator of the Federal Aviation 
    Administration may transfer any title, right, or interest the 
    United States has in the air traffic control tower located at the 
    Hickory Regional Airport to the City of Hickory, North Carolina, 
    for the purpose of enabling the city to provide air traffic control 
    services to operators of aircraft.
        (2) Study.--The Administrator shall conduct a study to 
    determine whether the number of operations at Hickory Regional 
    Airport meet the criteria for contract towers and shall certify in 
    writing to the Committee on Commerce, Science, and Transportation 
    of the Senate and the Committee on Commerce and Infrastructure of 
    the House of Representatives whether that airport meets those 
    criteria.
    (b) New Bern-Craven County Station.--The Administrator shall not 
close the New Bern-Craven County flight services station or the Hickory 
Regional Airport flight service station unless the Administrator 
certifies in writing to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives that such closure will 
not result in a degradation of air safety and that it will reduce costs 
to taxpayers.
    (c) Pierre, South Dakota Station.--The Administrator shall not 
close the Pierre, South Dakota Regional Airport flight service station 
unless following the 180th day after the date of the enactment of this 
Act the Administrator certifies in writing to the Committee on 
Commerce, Science, and Transportation of the Senate and the Committee 
on Transportation and Infrastructure of the House of Representatives 
that such closure will not result in a degradation of air safety, air 
service, or the loss of meteorological services or data that cannot 
otherwise be obtained in a more cost-effective manner, and that it will 
reduce costs to taxpayers.

SEC. 1217. LOCATION OF DOPPLER RADAR STATIONS, NEW YORK.

    (a) Study.--The Administrator of the Federal Aviation 
Administration shall conduct a study of the feasibility of constructing 
2 offshore platforms to serve as sites for the location of Doppler 
radar stations for John F. Kennedy International Airport and LaGuardia 
Airport in New York City, New York.
    (b) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Administrator shall transmit to Congress a report on 
the results of the study conducted under subsection (a), including 
proposed locations for the offshore platforms. Such locations shall be 
as far as possible from populated areas while providing appropriate 
safety measures for John F. Kennedy International Airport and LaGuardia 
Airport.

SEC. 1218. TRAIN WHISTLE REQUIREMENTS.

    (a) In General.--Section 20153 is amended by adding at the end the 
following:
    ``(i) Regulations.--In issuing regulations under this section, the 
Secretary--
        ``(1) shall take into account the interest of communities 
    that--
            ``(A) have in effect restrictions on the sounding of a 
        locomotive horn at highway-rail grade crossings; or
            ``(B) have not been subject to the routine (as defined by 
        the Secretary) sounding of a locomotive horn at highway-rail 
        grade crossings;
        ``(2) shall work in partnership with affected communities to 
    provide technical assistance and shall provide a reasonable amount 
    of time for local communities to install supplementary safety 
    measures, taking into account local safety initiatives (such as 
    public awareness initiatives and highway-rail grade crossing 
    traffic law enforcement programs) subject to such terms and 
    conditions as the Secretary deems necessary, to protect public 
    safety; and
        ``(3) may waive (in whole or in part) any requirement of this 
    section (other than a requirement of this subsection or subsection 
    (j)) that the Secretary determines is not likely to contribute 
    significantly to public safety.
    ``(j) Effective Date of Regulations.--Any regulations under this 
section shall not take effect before the 365th day following the date 
of publication of the final rule.''.

SEC. 1219. INCREASED FEES.

    (a) In General.--Notwithstanding any other provision of law, the 
Surface Transportation Board shall not increase fees for services to be 
collected from small shippers in connection with rail maximum rate 
complaints pursuant to part 1002 of title 49, Code of Federal 
Regulations, Ex Parte No. 542.
    (b) Applicability.--Subsection (a) shall no longer be effective 
after September 30, 1998.

SEC. 1220. STRUCTURES INTERFERING WITH AIR COMMERCE.

    (a) Landfills.--Section 44718 is amended by adding at the end the 
following:
    ``(d) Landfills.--For the purposes of enhancing aviation safety, in 
a case in which 2 landfills have been proposed to be constructed or 
established within 6 miles of a commercial service airport with fewer 
than 50,000 enplanements per year, no person shall construct or 
establish either landfill if an official of the Federal Aviation 
Administration has stated in writing within the 3-year period ending on 
the date of the enactment of this subsection that 1 of the landfills 
would be incompatible with aircraft operations at the airport, unless 
the landfill is already active on such date of enactment or the airport 
operator agrees to the construction or establishment of the 
landfill.''.
    (b) Civil Penalties.--Section 46301 is amended by inserting 
``44718(d),'' after ``44716,'' in each of subsections (a)(1)(A), 
(d)(2), and (f)(1)(A)(i).

SEC. 1221. HAWAII CARGO.

    Notwithstanding any other provision of law, and for a period that 
shall not extend beyond September 30, 1998, an air carrier which 
commenced all-cargo turnaround service during November 1995 with Stage 
2 aircraft with a maximum weight of more than 75,000 pounds may operate 
no more than one Stage 2 aircraft in all-cargo turnaround service and 
may also maintain a second such aircraft in reserve. The reserve 
aircraft may only be used as a replacement aircraft when the first 
aircraft is not airworthy or is unavailable due to closure of an 
airport at which the first aircraft is located in the State of Hawaii.

SEC. 1222. LIMITATION ON AUTHORITY OF STATES TO REGULATE GAMBLING 
              DEVICES ON VESSELS.

    Subsection (b)(2) of section 5 of the Act of January 2, 1951 
(commonly referred to as the ``Johnson Act'') (64 Stat. 1135, chapter 
1194; 15 U.S.C. 1175), is amended by adding at the end the following:
            ``(C) Exclusion of certain voyages and segments.--Except 
        for a voyage or segment of a voyage that occurs within the 
        boundaries of the State of Hawaii, a voyage or segment of a 
        voyage is not described in subparagraph (B) if such voyage or 
        segment includes or consists of a segment--
                ``(i) that begins and ends in the same State;
                ``(ii) that is part of a voyage to another State or to 
            a foreign country; and
                ``(iii) in which the vessel reaches the other State or 
            foreign country within 3 days after leaving the State in 
            which such segment begins.''.

SEC. 1223. CLARIFYING AMENDMENT.

    Section 1 of the Railway Labor Act (45 U.S.C. 151) is amended by 
inserting ``, any express company that would have been subject to 
subtitle IV of title 49, United States Code, as of December 31, 1995,'' 
after ``Board'' the first place it appears in the first paragraph.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.