[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1239 Introduced in Senate (IS)]

  1st Session
                                S. 1239

 To amend title 49, United States Code, with respect to the regulation 
   of interstate transportation by common carriers engaged in civil 
                   aviation, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

           September 13 (legislative day, September 5), 1995

  Mr. McCain (for himself, Mr. Ford, and Mr. Hollings) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
 To amend title 49, United States Code, with respect to the regulation 
   of interstate transportation by common carriers engaged in civil 
                   aviation, 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 SECTIONS.

    (a) Short Title.--This Act may be cited as the ``Air Traffic 
Management System Performance Improvement Act of 1995''.
    (b) Table of Sections.--The table of sections for this bill is as 
follows:

Sec. 1. Short title; table of sections.
Sec. 2. Definitions.
Sec. 3. Effective date.
                      Title I--General Provisions

Sec. 101. Findings.
Sec. 102. Purposes.
Sec. 103. Regulation of civilian air transportation and related 
                            services by the Federal Aviation 
                            Administration and the Department of 
                            Transportation.
Sec. 104. Regulations.
Sec. 105. Personnel and services.
Sec. 106. Contracts.
Sec. 107. Budget.
Sec. 108. Facilities.
Sec. 109. Property.
Sec. 110. Select panel to review innovative funding mechanisms.
Sec. 111. Transfers of funds from other Federal agencies.
Sec. 112. Management Advisory Council.
Sec. 113. Aircraft engine standards.
    Title II--Federal Aviation Administration Streamlining Programs

Sec. 201. Innovative program for air traffic control modernization.
Sec. 202. Air traffic control modernization reviews.
Sec. 203. Innovative program for Federal Aviation Administration 
                            services.
   Title III--System to Fund Certain Federal Aviation Administration 
                               Functions

Sec. 301. Findings.
Sec. 302. Purposes.
Sec. 303. User fees for various Federal Aviation Administration 
                            services.
Sec. 304. User fees for air traffic control services.
Sec. 305. Administrative provisions.
Sec. 306. Increase in spending caps under trust fund.
Sec. 307. Advance appropriations for Airport and Airway Trust Fund 
                            Activities.
SEC. 2. DEFINITIONS.

    For the purposes of this Act the following definitions shall 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) Federal agency.--The term ``Federal agency'' means 
        ``agency'' as defined in section 551(1) of title 5, United 
        States Code.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.

SEC. 3. EFFECTIVE DATE.

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

                      TITLE I--GENERAL PROVISIONS

SEC. 101. FINDINGS.

    Congress finds that:
            (1) In many respects the Federal Aviation 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) The users of the air transportation system now pay 70 
        percent of the budget of the Federal Aviation 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 Federal Aviation Administration's services.
            (3) The Federal Aviation Administration must become a more 
        efficient, effective, and different organization to meet future 
        challenges.
            (4) The need to balance the Federal budget means that the 
        General Fund contribution cannot be relied upon in the future 
        to meet the Federal Aviation Administration's overall budget.
            (5) Congress must keep its commitment to the users of the 
        national air transportation system by seeking to spend all 
        monies collected from them each year and deposited into the 
        Airport and Airways Trust Fund.
            (6) The aviation community and the employees of the Federal 
        Aviation Administration must come together to improve the 
        system. The Federal Aviation 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 Federal Aviation 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) By the year 2003, the Federal Aviation Administration, 
        to the extent possible, must be user supported, and have the 
        ability to make rational short term and long term decisions.
            (9) Absent significant and meaningful reform, future 
        challenges and needs cannot be met.
            (10) The Federal Aviation Administration must have a new 
        way of doing business.
            (11) There is widespread agreement within government and 
        the aviation industry that reform of the Federal Aviation 
        Administration is essential to safely and efficiently 
        accommodate the projected growth of aviation within the next 
        decade.
            (12) Because the Federal Aviation 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 Federal Aviation Administration must 
        be enabled to change the Federal procurement and personnel 
        systems to ensure that the Federal Aviation Administration has 
        the ability to keep pace with new technology and is able to 
        match resources with the real personnel needs of the Federal 
        Aviation Administration.
            (13) The existing budget system does not allow for long-
        term planning or timely acquisition of technology by the 
        Federal Aviation Administration.
            (14) Without reforms in the areas of procurement, 
        personnel, funding, and governance, the Federal Aviation 
        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.
            (15) All reforms should be designed to help the Federal 
        Aviation Administration become more responsive to the needs of 
        its customers.

SEC. 102. PURPOSES.

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

SEC. 103. REGULATION OF CIVILIAN AIR TRANSPORTATION AND RELATED 
              SERVICES BY THE FEDERAL AVIATION ADMINISTRATION AND 
              DEPARTMENT OF TRANSPORTATION.

    (a) In General.--Section 106 of title 49, United States Code, is 
amended--
            (1) by striking ``The Administrator'' in the fifth sentence 
        of subsection (b) and inserting ``Except as provided in 
        subsection (f) of this section or in other provisions of law, 
        the Administrator''; and
            (2) by amending subsection (f) to read as follows:
    ``(f) Authority of the Secretary and the Administrator.--
            ``(1) Authority of the secretary.--Except as provided in 
        paragraph (2), the Secretary of Transportation shall carry out 
        the duties and powers of the Administration.
            ``(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 
                        section 104 of the Air Traffic Management 
                        System Performance Improvement Act of
                         1995, 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 1995 (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 
                to the contrary, 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 on the Executive 
                Schedule under sections 5312 through 5316 of title 5, 
                United States Code;
                    ``(B) is a limited term appointee, limited 
                emergency appointee, or noncareer appointee in the 
                Senior Executive Service as defined under section 
                3132(a) (5), (6), and (7) of title 5, United States 
                Code, respectively; 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 Act limits 
any authority granted to the Administrator by statute or by delegation 
that was in effect on the day before the date of enactment of this Act.

SEC. 104. 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, United States Code. 
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 18 months after the date of 
publication in the Federal Register of a notice of proposed rulemaking 
or, in the case of an advanced notice of proposed rulemaking, if 
issued, not later than 24 months after that date.
    (b) Approval of Secretary of Transportation.--
            (1) General rule.--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 
        $50,000,000 or more (adjusted annually for inflation beginning 
        with the year following the date of enactment of this Act) in 
        any 1 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 it is likely to--
                    (A) have an annual effect on the economy of $100 
                million 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;
                    (B) create a serious inconsistency or otherwise 
                interfere with an action taken or planned by another 
                agency;
                    (C) materially alter the budgetary impact of 
                entitlements, grants, user fees, or loan programs or 
                the rights and obligations of recipients thereof; or
                    (D) raise novel legal or policy issues arising out 
                of legal mandates.
            (2) Emergency action.--In an emergency, the Administrator 
        may issue a regulation described in paragraph (1) 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.
            (3) Any regulation that does not meet the criteria of 
        paragraph (1), 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.
            (4) The Administrator shall submit a copy of any regulation 
        requiring approval by the Secretary under paragraph (1) 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.--
            (1) New regulations.--Beginning 3 years after the date of 
        enactment of this Act, the Administrator shall review any 
        unusually burdensome regulation issued by the Administrator 
        after the date of enactment of this Act 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.
            (2) Existing regulations.--The Administrator may identify 
        unusually burdensome regulations in force that were issued 
        before the date of enactment of this Act for review, more than 
        3 years after the date of enactment of this Act, under the 
        criteria set forth in paragraph (1).
            (3) Unusually burdensome regulation.--For purposes of this 
        subsection, 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 
        enactment of this Act) in any year.
            (4) Use of advisory committee.--The Administrator may, in 
        the Administrator's discretion, use an advisory committee to 
        perform the review.

SEC. 105. PERSONNEL AND SERVICES.

    (a) Officers and Employees.--In the performance of the functions of 
the Administrator, the Administrator is authorized 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. Except as otherwise provided 
by law, such officers and employees shall be appointed in accordance 
with the civil service laws and compensated in accordance with title 5, 
United States Code. In fixing compensation and benefits of officers and 
employees, the Administrator shall not engage in any type of bargaining 
nor shall he be bound by any requirement to establish such compensation 
or benefits at particular levels.
    (b) Experts and Consultants.--The Administrator is authorized to 
obtain the services of experts and consultants in accordance with 
section 3109 of title 5, United States Code.
    (c) 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, United 
States Code.
    (d) Use of Personnel From Other Agencies.--The Administrator is 
authorized to utilize the services of personnel of any other Federal 
agency.
    (e) Voluntary Services.--
            (1) In general.--In exercising the authority to accept 
        gifts and voluntary services under section 326 of title 49, 
        United States Code, and without regard to section 1342 of title 
        31 of such Code, 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.
            (2) Expenses.--The Administrator is authorized to provide 
        for incidental expenses, including transportation, lodging, and 
        subsistence for volunteers who provide voluntary services under 
        this subsection.
            (3) Administrative concerns.--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, United States Code, relating 
        to compensation for work injuries, and chapter 171 of title 28, 
        United States Code, relating to tort claims.

SEC. 106. 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 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. 107. BUDGET.

    (a) In General.--Section 48109 of title 49, United States Code, is 
amended to read as follows:
``Sec. 48109. Budget information and legislative recommendations and 
              comments
    ``(a) Preparation.--Beginning with the budget for first fiscal year 
beginning after the first fiscal year in which the Federal Aviation 
Administration is funded entirely by user fees, the Administrator shall 
prepare a budget for the Administration for each fiscal year.
    ``(b) Submission of Budget to DOT.--At the same time that agencies 
of the Department of Transportation having jurisdiction over other 
modes of transportation are required to submit their budgets to the 
Secretary of Transportation, the Administrator shall submit to the 
Secretary the budget prepared by the Administrator. The budget 
submission shall include a statement of income and expenses and 
analysis of the surplus or deficit in the Airport and Airway Trust Fund 
established under section 9502 of the Internal Revenue Code of 1986, 
and any other such supplementary information as is necessary or 
desirable to make known about the financial condition and operations of 
the Administrator. The annual budget shall be included in the budget 
submitted by the President pursuant to chapter 11 of title 31, United 
States Code. The Secretary shall review the budget and may recommend to 
the Administrator modifications in the budget necessary to ensure that 
the budget is consistent with the need of the national transportation 
system. The Administrator, at its discretion, may modify the budget to 
adopt any recommendation made by the Secretary.
    ``(c) Submission of Budget to Congress.--
            ``(1) In general.--When the Administrator submits to the 
        President or the Director of the Office of Management and 
        Budget any budget information, legislative recommendation, or 
        comment on legislation about amounts authorized in section 
        48101 or 48102, the Administrator concurrently shall submit a 
        copy of the information, recommendation, or comment to the 
        Speaker of the House of Representatives, the Committees on 
        Transportation and Infrastructure and Appropriations of the 
        House of Representatives, the President of the Senate, and the 
        Committees on Commerce, Science, and Transportation and 
        Appropriations of the Senate.
            ``(2) Special rule with respect to annual budgets.--The 
        annual budget of the Administration submitted to Congress shall 
        include--
                    ``(A) any modifications made by the Administrator 
                under subsection (b) with respect to the budget; and
                    ``(B) if the Administrator does not adopt a 
                recommendation made by the Secretary under subsection 
                (b), a description of the recommendation and the 
                reasons for not adopting the recommendation.
    ``(d) Cost Reduction and Efficiency Report Required.--Whenever the 
Administrator submits a report, request, or proposal that contains an 
increase in either the budget of the Administration or any of the fees 
imposed by the Administration, the Administrator shall submit, as a 
part of that report, request, or proposal--
            ``(1) an explanation that states specifically the need for 
        the increase; and
            ``(2) a statement of any steps taken by the Administration 
        to reduce costs and improve efficiency in order to avoid or 
        limit the increase.''.
    (b) Conforming Amendment.--The analysis for chapter 481 of such 
title is amended by striking the item relating to section 48109 and 
inserting the following:

``48109. Budget information and legislative recommendations and 
                            comments.''.
SEC. 108. FACILITIES.

    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 and any other 
public or private agency. 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. 109. PROPERTY.

    (a) Acquisition.--The Administrator is authorized--
            (1) to acquire (by purchase, lease, condemnation, or 
        otherwise), construct, improve, repair, operate, and maintain--
                    (A) air traffic control facilities and equipment;
                    (B) research and testing sites and facilities; and
                    (C) 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;
            (2) to lease to others such real and personal property; and
            (3) 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 
        Administrator, and to purchase and maintain equipment for these 
        facilities.
    (b) Title.--Title to any property or interest therein acquired 
pursuant to this section shall be held by the Government of the United 
States.

SEC. 110. SELECT PANEL TO REVIEW INNOVATIVE FUNDING MECHANISMS.

    (a) Establishment.--The Administrator shall establish a select 
panel to review and report to Congress regarding a limited innovative 
program to fund specific facilities and equipment projects, and to 
provide limited additional funding alternatives for airport capacity 
development. The mechanisms to be reviewed shall include loan 
guarantees, financial partnerships with for-profit private sector 
entities, government sponsored enterprises, and revolving loan funds.
    (b) Appointment of Members.--The members of any panel established 
under this section shall consist of appropriate Federal Government 
officials and representatives of the aviation industry, Administration 
employees, the financial community, and State and local governments.
    (c) Travel and Per Diem.--Each member of the panel established 
under this section shall be paid actual travel expenses, and per diem 
in lieu of subsistence expenses when away from his or her usual place 
of residence.
    (d) Report.--Not later than 6 months after the date of the 
appointment of the last member to the panel under subsection (b), the 
panel shall submit to the Congress and the Administration a report on 
the results of the review conducted under this section.
    (e) Federal Advisory Committee Act Not To Apply.--The Federal 
Advisory Committee Act (5 U.S.C. App.) does not apply to the panel 
established under this section.
    (f) Termination.--The panel established under this section shall 
terminate on the date that is 30 days after the date of submission of 
the report under subsection (d).

SEC. 111. TRANSFERS OF FUNDS FROM OTHER FEDERAL AGENCIES.

    The Administrator is authorized to accept transfers of unobligated 
balances and unexpended balances of funds appropriated to other Federal 
agencies to carry out functions transferred by this Act to the 
Administrator or functions pursuant to law to the Administrator on or 
after the date of the enactment of this Act.

SEC. 112. MANAGEMENT ADVISORY COUNCIL.

    (a) Establishment.--Within 3 months of the date of enactment of 
this Act, the Administrator shall established an advisory council which 
shall be known as the Federal Aviation Management Advisory Council (in 
this section referred to as the ``Council''). With respect to Federal 
Aviation Administration management, policy, spending, 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.
    (b) Membership.--The Council shall consist of 15 members, who shall 
consist of--
            (1) a designee of the Secretary of Transportation;
            (2) a designee of the Secretary of Defense; and
            (3) 13 members appointed by the Administrator.
    (c) Qualifications.--Members appointed to the Council under this 
section shall be selected from among individuals who are experts in 
disciplines relevant to the aviation industry and who are able 
collectively to represent a balanced view of the issues important to 
air carriers, general aviation, business aviation, airports, commercial 
space transportation, industry and Administration employees, aircraft 
manufacturers, and public users.
    (d) Functions.--
            (1) In general.--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.
            (2) Panels and working groups.--The chairman of the Council 
        shall establish a panel or working group, from among the 
        members of the Council, on the development of fees for various 
        Federal Aviation Administration services under section 303 and 
        for air traffic control services under section 304, and may 
        establish such additional panels and working groups, consisting 
        of members of the Council, as may be necessary to carry out the 
        functions of the Council.
            (3) Meetings.--The Council shall meet on a regular and 
        periodic basis or at the call of the chairman or of the 
        Administrator.
            (4) Access to documents and staff.--The Administration may 
        give the Council appropriate access to relevant documents and 
        personnel of the Administration.
    (e) Federal Advisory Committee Act Not To Apply.--The Federal 
Advisory Committee Act (5 U.S.C. App.) does not apply to the Council.
    (f) Administrative Matters.--
            (1) Terms of members.--
                    (A) 3-year terms.--Except as provided in 
                subparagraph (B), members of the Council appointed by 
                the Administrator under subsection (b)(3) shall be 
                appointed for a term of 3 years.
                    (B) Initial appointees.--Of the members first 
                appointed by the Administrator--
                            (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.
                    (C) Filling unexpired term.--An individual chosen 
                to fill a vacancy shall be appointed for the unexpired 
                term of the member replaced.
                    (D) Expiration of terms.--A member whose term 
                expires shall continue to serve until the date on which 
                the member's successor takes office.
            (2) Chairman; vice chairman.--The Council shall elect a 
        chair and a vice chair from among its members, 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.
            (3) 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, United 
        States Code.
            (4) 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 section.

SEC. 113. AIRCRAFT ENGINE STANDARDS.

    Subsection (a)(1) of section 44715 of title 49, United States Code, 
is amended to read as follows:
    ``(a) Standards and Regulations.--(1) To relieve and protect the 
public health and welfare from aircraft noise, sonic boom, and aircraft 
engine emissions, the Administrator of the Federal Aviation 
Administration, as he deems necessary, shall prescribe--
            ``(A) standards to measure aircraft noise and sonic boom;
            ``(B) regulations to control and abate aircraft noise and 
        sonic boom; and
            ``(C) emission standards applicable to the emission of any 
        air pollutant from any class or classes of aircraft engines 
        which, in the judgment of the Administrator, causes, or 
        contributes to, air pollution which may reasonably be 
        anticipated to endanger public health or welfare.''.

    TITLE II--FEDERAL AVIATION ADMINISTRATION STREAMLINING PROGRAMS

SEC. 201. INNOVATIVE PROGRAM FOR AIR TRAFFIC CONTROL MODERNIZATION.

    (a) Innovative Program.--The Administrator shall develop and 
implement an innovative program under which an acquisition management 
system is used to procure goods and services by the Administration.
    (b) Exemption From Procurement Laws.--
            (1) In general.--Subject to paragraph (2), in carrying out 
        the acquisition management system used under the innovative 
        program, the Administrator may waive all or any part of--
                    (A) title III of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 5, and 
                251 through 266);
                    (B) the Office of Federal Procurement Policy Act 
                (41 U.S.C. 401 et seq.);
                    (C) sections 8, 9, and 15 of the Small Business Act 
                (15 U.S.C. 637, 638, and 644), but the Administrator 
                shall provide resources for the development and 
                implementation of a program that presents the maximum 
                opportunities, to the extent possible, for small 
                business concerns and small business concerns owned and 
                controlled by socially and economically disadvantaged 
                individuals to participate in the performance of 
                contracts awarded by the Federal Aviation 
                Administration; and
                    (D) any provision of law that, pursuant to section 
                34 of the Office of Federal Procurement Policy Act (41 
                U.S.C. 430), is listed in the Federal Acquisition 
                Regulation as being inapplicable--
                            (i) to contracts for the procurement of 
                        commercial items; or
                            (ii) in the case of a subcontract under the 
                        innovative program, to subcontracts for the 
                        procurement of commercial items;
                    (E) the Federal Acquisition Streamlining Act of 
                1994 (Public Law 103-355);
                    (F) the Service Contract Act;
                    (G) subchapter V of chapter 35 of title 31, United 
                States Code, relating to the procurement protest 
                system;
                    (H) the Brooks Automatic Data Processing Act 
                (section 111 of the Federal Property and Administrative 
                Services Act of 1949; 40 U.S.C. 759);
                    (I) the Brooks Architect-Engineer Act (40 U.S.C. 
                541-544); and
                    (J) the Federal Acquisition Regulation and any law 
                that is not listed in subparagraphs (A) through (I) 
                providing authority to promulgate regulations in the 
                Federal Acquisition Regulation.
            (2) The Department of Defense shall have the same 
        exemptions from acquisition laws as are waived by the 
        Administrator under paragraph (1) 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) Effective date.--The Administrator may not waive the 
        laws referred to in paragraph (1) until the expiration of the 
        30-day period referred to in subsection (d)(2).
    (c) Development of Acquisition Management System.--
            (1) In general.--Not later than 180 days after the 
        effective date of this Act, the Administrator, in consultation 
        with such governmental and nongovernmental experts in 
        acquisition management systems as the Administration may 
        employ, shall develop an acquisition management system for the 
        Administration. Notwithstanding any other provision of law to 
        the contrary, the Administrator may, for purposes of this 
        section, 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. In developing the system, the 
        Administrator may utilize the services of experts and 
        consultants under section 3109 of title 5, United States Code, 
        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.
            (2) Requirements.--The acquisition management system to be 
        developed by the Administrator under paragraph (1) shall be--
                    (A) designed to ensure that new equipment is 
                installed and certified as quickly as possible without 
                sacrificing safety, principles of fairness, and 
                protection against waste, fraud, and abuse; and
                    (B) designed to ensure the best practicable 
                acquisitions in terms of best value.
    (d) Notice to Congress.--
            (1) In general.--Upon completion of the development of the 
        acquisition management system, the Administrator shall submit a 
        comprehensive plan describing the acquisition management system 
        to the Congress. The Administrator shall also transmit with the 
        plan a copy of all suggestions and comments provided to the 
        Administration by the Department of Transportation, and by 
        outside experts (if any), on the acquisition management system.
            (2) Date of implementation.--The Administrator may begin to 
        implement the acquisition management system only after the 
        expiration of the 30-day period that begins on the date on 
        which the plan is submitted to the Congress under paragraph 
        (1).
    (e) Expert Evaluation.--Three years after the acquisition 
management system is implemented, the Administration shall employ 
outside experts to provide an independent evaluation of the 
effectiveness of the system within 3 months. 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.
    (f) Modifications to System.--The Administrator may periodically 
make modifications to the acquisition management system. Any such 
modifications shall be submitted to the Congress under subsection (d) 
in the same manner as the acquisition management system plan and may 
not be implemented until after the expiration of the 30-day period 
beginning on the date of submission.

SEC. 202. AIR TRAFFIC CONTROL MODERNIZATION REVIEWS.

    (a) Required Terminations of Acquisitions.--The Administrator shall 
terminate any program initiated after the date of enactment of this Act 
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 Terminations of Acquisitions.--The Administrator 
shall consider terminating, under the authority of subsection (a), any 
substantial acquisition 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) Exception 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) 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. 203. INNOVATIVE PROGRAM FOR FEDERAL AVIATION ADMINISTRATION 
              SERVICES.

    (a) Innovative Program.--The Administrator shall develop and 
implement an innovative program under which a personnel management 
system is used for the management, compensation, and advancement of 
Administration employees.
    (b) Exemption From Certain Provisions of Title 5, United States 
Code.--
            (1) In general.--Except as otherwise provided in this 
        section, under the innovative program, the Administration shall 
        be exempt from parts II and III of title 5, United States Code.
            (2) Effective date.--The exemption provided by paragraph 
        (1) shall not take effect until the expiration of the 30-day 
        period specified in subsection (d)(2).
    (c) Development of Personnel Management System.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Administrator, in consultation with 
        Administration employees, including designated bargaining 
        representatives, and such governmental and nongovernmental 
        experts in personnel management systems as the Administrator 
        may employ, shall develop a personnel management system for the 
        Administration. Notwithstanding any other provision of law to 
        the contrary, the Administrator may, for purposes of this 
        section, 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. In developing the system, the 
        Administrator may utilize the services of experts and 
        consultants under section 3109 of title 5, United States Code, 
        without regard to the limitation imposed by the last sentence 
        of section 3109(b) of such title.
            (2) Goal.--The goal of the personnel management system to 
        be developed by the Administrator under paragraph (1) is to 
        provide, consistent with the requirements of this section, the 
        Administration with the ability--
                    (A) to hire, promote, and fire employees as in the 
                private sector;
                    (B) to establish a pay structure as needed to 
                conduct the business of the Administration in an 
                efficient and effective manner within available 
                resources;
                    (C) to provide salaries designed to attract the 
                best qualified employees within available resources;
                    (D) to staff facilities that are difficult to 
                staff;
                    (E) to move personnel to those facilities where 
                they are most needed; and
                    (F) to continue to provide an appropriate framework 
                for labor-management relations concerning terms and 
                conditions of employment.
    (d) Notice to Congress.--
            (1) In general.--Upon development of the personnel 
        management system under this section, the Administrator shall 
        submit a comprehensive plan describing the personnel management 
        system to the Congress. The Administrator shall also transmit 
        with the plan a copy of all suggestions and comments provided 
        to the Administration by the Department of Transportation, and 
        by outside experts (if any), on the personnel management 
        system.
            (2) Implementation.--The Administration may begin to 
        implement the personnel management system only after the 
        expiration of the 30-day period that begins on the date the 
        plan is submitted to the Congress.
    (e) Expert Evaluation.--Three 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. For this purpose, the Administrator may utilize the 
services of experts and consultants under section 3109 of title 5, 
United States Code, 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.
    (f) Employee Rights and Benefits.--The enactment of this section 
shall not result in the exemption of employees of the Administration 
from any of the following provisions of title 5, United States Code:
            (1) Section 2302(b) (relating to whistleblower protection).
            (2) Sections 3308-3320 (relating to veterans' preference)
            (3) Section 7116(b)(7) (relating to prohibition of the 
        right to strike).
            (4) Section 7204 (relating to antidiscrimination).
            (5) Chapter 63 (relating to leave).
            (6) Chapter 71 (relating to labor-management relations).
            (7) Chapter 73 (relating to suitability, security, and 
        conduct).
            (8) Chapter 81 (relating to compensation for work 
        injuries).
            (9) Chapter 83 (relating to retirement).
            (10) Chapter 84 (relating to the Federal Employees' 
        Retirement System).
            (11) Chapter 85 (relating to unemployment compensation).
            (12) Chapter 87 (relating to life insurance).
            (13) Chapter 89 (relating to health insurance).
            (14) Subchapter II of chapter 53 (with respect to the pay 
        of the Administrator).
    (g) 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.
    (h) Ethics.--The Administration shall be subject to Executive Order 
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.
    (i) Employee Protections.--Employment rights, wages, and benefits 
of employees of the Administration shall not be adversely affected by 
reason of the enactment of this section, except for unacceptable 
performance or by reason of a reduction in force or reorganization, 
during the period commencing on the effective date of this Act and 
ending on the date determined under subsection (b)(2).
    (j) Labor-Management Agreements.--Except as otherwise provided by 
this Act, all labor-management agreements covering employees of the 
Administration that are in effect on the effective date of this Act 
shall remain in effect until their normal expiration date, unless the 
Administrator and the exclusive bargaining representative agree to the 
contrary.
    (k) Modifications to System.--The Administrator may periodically 
make modifications to the personnel management system. Any such 
modifications shall be submitted to the Congress under subsection (d) 
in the same manner as the personnel management system plan and may not 
be implemented until after the expiration of the 30-day period 
beginning on the date of submission.

   TITLE III--SYSTEM TO FUND CERTAIN FEDERAL AVIATION ADMINISTRATION 
                               FUNCTIONS

SEC. 301. FINDINGS.

    The Congress finds the following:
            (1) The Federal Aviation 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 non-pilots, 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 fully certifies more than 6,000 
        medical examiners, each of whom is then fully qualified to 
        medically certify the qualifications of pilots and non-pilots.
            (6) The Administration fully 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 pilots 
        licenses and more than 560,000 non-pilot licenses (e.g., 
        mechanics).
            (9) The Administration's certification means that the 
        product meets the highest standards of safety and reliability.
            (10) The Administration's certification means aviation-
        related equipment and services meet the highest standards 
        throughout the world.
            (11) The Administration's certification is a valuable 
        element for any company to sell aviation-related products 
        throughout the world.
            (12) The Administration certification constitutes a 
        valuable license, franchise or privilege, and confers many 
        benefits on 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, including the military. Federal Aviation 
        Administration cost allocation studies attribute about 15 
        percent of the cost of the airway system to public use 
        aircraft. The estimated cost of these air traffic services in 
        1993 was $1.1 billion. Most of these services were provided to 
        the military. The annual appropriations from the General Fund 
        to the Administration have been considered, in part, payment 
        for the cost of such services, but are expected to decline in 
        future years.
            (15) The Administration must be able to design, to the 
        maximum extent possible, a performance-based system to recover 
        its interest and cost in its certification and purchasing 
        systems.

SEC. 302. PURPOSES.

    The purposes of this title are--
            (1) to provide a financial structure for the Federal 
        Aviation Administration so that it will be able to support the 
        future growth in the national aviation and airport system;
            (2) to establish a program of incentive-based fees for 
        services to improve air traffic management system performance 
        and to establish appropriate levels of cost accountability for 
        air traffic management services provided by the Federal 
        Aviation Administration;
            (3) to ensure that the funding obtained by user fees set by 
        this title will be dedicated solely for the use of the Federal 
        Aviation Administration;
            (4) to authorize the Federal Aviation Administration to 
        recover the costs of its services from those who benefit from 
        the national aviation system and the services provided by the 
        Federal Aviation Administration;
            (5) to allow the Federal Aviation Administration to develop 
        a fee system based on the cost or value of the services 
        provided;
            (6) to demonstrate to each segment of the aviation industry 
        the benefits of a cost-based or value-based user fee system;
            (7) to replace the existing user charges with a new fee 
        system as a means of achieving a more efficient and effective 
        Federal Aviation Administration for the aviation transportation 
        industry; and
            (8) to have the Federal Aviation Administration develop fee 
        systems that do not directly impinge upon the non-business jet 
        and non-commercial aspects of the general aviation community.

SEC. 303. USER FEES FOR VARIOUS FEDERAL AVIATION ADMINISTRATION 
              SERVICES.

    (a) In General.--Within 6 months of the date of enactment of this 
Act, the Administration shall submit to the Congress a performance-
based fee system, to the maximum extent possible, for--
            (1) services other than air traffic control services, 
        including safety, certification, security, training, 
        inspection, and other activities;
            (2) services (other than air traffic control services) 
        provided to a foreign government; and
            (3) air traffic control services for--
                    (A) flights over the United States or its 
                territories by air carriers that neither arrive at nor 
                depart from a United States airport (other than such 
                flights by foreign government aircraft engaged on 
                official business); and
                    (B) business jets.
    (b) Considerations.--To the extent possible, the Administrator, in 
developing a fee system, shall consider--
            (1) the impact on segments of the aviation industry; and
            (2) the fair value, or cost, of the service provided by the 
        Federal Aviation Administration.
    (c) Consultation With Affected Parties.--In developing proposals 
under this section, the Administrator shall consult with 
representatives of the commercial aviation industry, the general 
aviation sector, airports, and other affected parties.
    (d) 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, United States 
Code, 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. The Administrator shall cause a copy of the 
proposed fee system to be printed in the Federal Register upon its 
submission to the Congress.
    (e) Fees Effective 45 Days After Submission.--
            (1) In general.--Unless disapproved by the Congress under 
        section 305(b), any fees proposed by the Administrator under 
        this section shall take effect 45 days after the date on which 
        the proposal is submitted to the Congress, or on such later 
        date as the Administrator may propose. If a fee proposal is 
        submitted to the Congress less than 45 days before the date on 
        which the Congress adjourns sine die, or less than 45 days 
        before any 30-day period in which neither House of the Congress 
        is in session, then the fees so proposed shall not take effect 
        unless resubmitted under this section. Any proposal resubmitted 
        shall be considered a new submission for applying the first 
        sentence of this paragraph to the resubmitted proposal.
            (2) Implementation delayed if trust fund amounts 
        adequate.--Beginning with fiscal year 1998, no fee proposed by 
        the Administrator may be imposed under this section unless the 
        sum of the outlays from the Airport and Airway Trust Fund 
        exceeds the receipts of the Fund for the preceding fiscal year.
    (f) Agreement With Department of Defense.--Within 6 months after 
the date of enactment of this Act, the Administration shall enter into 
an agreement with the Department of Defense under which the 
Administration will be reimbursed for the net cost of air traffic 
control services provided to the Department of Defense.
    (g) Termination.--Fees imposed under this section shall terminate 3 
years after going into effect, but any amounts collected before the 
fees terminate shall remain available until expended.
    (h) Additional System Proposals.--Not less than 6 months before the 
date on which any fee system imposed under this section terminates, the 
Administrator shall submit to the Congress a proposal for a fee system 
to replace the terminating system. Any replacement fee system proposed 
under this subsection shall be developed in consultation with the 
representatives described in subsection (c). The Administrator shall 
submit to the Congress at the same time as the proposal is submitted, a 
review of the effectiveness of the standards established for the fee 
system the proposed fee system is intended to replace, conducted by 
independent experts. The proposed replacement fee system shall take 
effect upon the termination of the fee system it replaces unless 
disapproved by the Congress under subsection (d), and shall terminate 3 
years after going into effect.
    (i) Repeal.--Sections 45301, 45302, and 70118 of title 49, United 
States Code, are repealed.

SEC. 304. USER FEES FOR AIR TRAFFIC CONTROL SERVICES.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Administrator shall submit to the Congress a proposed 
fee system for air traffic control services. In developing the 
proposal, the Administrator may utilize the services of experts and 
consultants under section 3109 of title 5, United States Code, 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, to develop 
air traffic control user fees based on improved system performance.
    (b) Limitations.--
            (1) Trust fund payors.--Fees may not be imposed under this 
        section on any segment of the aviation industry subject to 
        trust fund taxes until the rate of trust fund taxes paid by 
        that segment is reduced below the rate at which such taxes were 
        assessed during fiscal year 1995.
            (2) Other users.--Notwithstanding paragraph (1), fees 
        imposed under this section may be imposed on any user of air 
        traffic control services not subject to trust fund taxes, so 
        long as any such fees are consistent with international 
        agreements.
            (3) Limitation on amount.--The aggregate amount of fees 
        imposed under this section in any year on any segment of the 
        aviation industry may not exceed 110 percent of the projected 
        difference between (1) the estimated aggregate amount that 
        would have been collected in such year from that segment at the 
        rates of Trust Fund taxes in effect in 1995 and (2) the 
        estimated aggregate amount that would be collected in such year 
        from that segment at the Trust Fund tax rates reduced below the 
        levels in effect in 1995.
    (c) Fees Effective 45 Days After Approval.--Unless disapproved by 
the Congress under section 305(b), fees proposed by the Administrator 
under this section take effect 45 days after the date on which the 
proposal is submitted to the Congress, or on such later date as the 
Administrator may propose.
    (d) Definitions.--When used in this section:
            (1) Segment.--The term `segment' refers to--
                    (A) commercial airlines;
                    (B) commercial cargo air carriers;
                    (C) business jets;
                    (D) general aviation; and
                    (E) public use.
            (2) Trust fund taxes.--The term `trust fund taxes' means 
        Federal taxes the receipts from which are credited in whole or 
        in part to the Airport and Airway Trust Fund.
    (e) Termination.--Fees imposed under this section shall terminate 3 
years after going into effect, but any amounts collected before the 
fees terminate shall remain available until expended.
    (f) Additional System Proposals.--Not less than 6 months before the 
date on which any fee system imposed under this section terminates, the 
Administrator shall submit to the Congress a proposal for a fee system 
to replace the terminating system. Any replacement fee system proposed 
under this subsection shall be developed in consultation with the 
Management Advisory Council established under section 112. The 
Administrator shall submit to the Congress at the same time as the 
proposal is submitted, a review of the effectiveness of the standards 
established for the fee system the proposed fee system is intended to 
replace, conducted by independent experts. Unless disapproved by the 
Congress under section 305(b), the proposed replacement fee system 
shall take effect upon the termination of the fee system it replaces, 
and shall terminate 3 years after going into effect.

SEC. 305. ADMINISTRATIVE PROVISIONS.

    (a) In General.--
            (1) Fees payable to administrator.--All fees imposed under 
        this title for services performed, or materials furnished, by 
        the Administration are payable to the Administrator.
            (2) Refunds.--The Administrator may refund any fee paid by 
        mistake or any amount paid in excess of that required.
            (3) Receipts credited to account.--Notwithstanding section 
        3302 of title 31, United States Code, all fees 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, (whether imposed under this section 
        or not)--
                    (A) shall be credited to a separate account 
                established in the Treasury and made available for 
                Federal Aviation Administration activities as 
                offsetting collections;
                    (B) shall be available only to the extent that the 
                expenditures for the Administration exceed the amounts 
                made available for such expenditures from the Airport 
                and Airways Trust Fund; and
                    (C) shall remain available until expended.
            (4) Investment of account balance.--Any amount in the 
        separate account established under paragraph (3)(A) of this 
        section that is not needed for immediate disbursement shall be 
        invested by the Secretary of the Treasury only in interest-
        bearing obligations of the United States, by purchasing such 
        obligations (A) if at original issue, as the issue price, or 
        (B) if outstanding, at the market price. The interest on, and 
        proceeds from the sale or redemption of, any such obligation 
        shall be credited to such separate account.
            (5) Annual budget report by administrator.--The 
        Administrator shall, on the same day each year as the President 
        submits the annual budget to the 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--
                    (A) a list of fee collections by the Administration 
                during the preceding fiscal year;
                    (B) a list of activities by the Administration 
                during the preceding fiscal year that were supported by 
                fee expenditures and appropriations;
                    (C) budget plans for significant programs, 
                projects, and activities of the Administration, 
                including out-year funding estimates;
                    (D) any proposed disposition of surplus fees by the 
                Administration; and
                    (E) such other information as those committees 
                consider necessary.
    (b) Congressional Procedure.--
            (1) In general.--This subsection is enacted by the Congress 
        as an exercise of the rulemaking power of the Senate and the 
        House of Representatives, respectively, and as such these 
        provisions are deemed to be a part of the rules of each House 
        of the Congress, respectively, applicable only to the procedure 
        to be followed in that House for resolutions described in this 
        subsection. These provisions supersede other rules of each 
        House of the Congress only to the extent that they are 
        inconsistent with those other rules, and they are enacted with 
        full recognition of the constitutional right of each House to 
        change them, to the extent that they relate to the procedure of 
        that House, in the same manner and to the same extent as any 
        other rule of that House.
            (2) Resolution.--For purposes of this subsection, the term 
        ``resolution'' means a joint resolution relating to the 
        disapproval of a fee proposal submitted by the Administrator 
        under section 303 or section 304, the matter after the 
        resolving clause of which is as follows: ``That the Congress 
        disapproves the fee proposal submitted by the Administrator of 
        the Federal Aviation Administration on ---- and identified as 
        ----.'', the first blank space being filled with the date on 
        which the proposal was submitted and the second being filled 
        with the title or other description of the proposal. The term 
        does not include a resolution that relates to more than one 
        proposal.
            (3) Referral.--Upon introduction, a resolution shall be 
        referred to the Committee on Commerce, Science, and 
        Transportation of the Senate or the Committee on Transportation 
        and Infrastructure of the House of Representatives.
            (4) Motion to discharge.--If the committee to which a 
        resolution has been referred has not reported it at the end of 
        20 calendar days after its introduction, it is in order to move 
        to discharge the committee from further consideration of that 
        resolution.
            (5) Rules for motion to discharge.--A motion to discharge 
        may be made only by an individual favoring the resolution, is 
        highly privileged (except that it may not be made after the 
        committee has reported a resolution with respect to the same 
        proposal), and debate thereon shall be limited to not more than 
        1 hour, with the time divided equally between those favoring 
        and those opposing the motion. An amendment to the motion is 
        not in order, and it is not in order to move to reconsider the 
        vote by which the motion is agreed to or disagreed to. Motions 
        to postpone shall be decided without debate.
            (6) Effect of motion.--If the motion to discharge is agreed 
        to or disagreed to, the motion may not be renewed, nor may 
        another motion to discharge the committee be made with respect 
        to any other resolution with respect to the same proposal.
            (7) Senate procedure.--
                    (A) Motion to proceed.--When the committee of the 
                Senate has reported, or has been discharged from 
                further consideration of, a resolution, it is at any 
                time thereafter in order (even though a previous motion 
                to the same effect has been disagreed to) to move to 
                proceed to the consideration of the resolution. The 
                motion is highly privileged and is not debatable. An 
                amendment to the motion is not in order, and it is not 
                in order to move to reconsider the vote by which the 
                motion is agreed to or disagreed to.
                    (B) Limitation on debate.--Debate in the Senate on 
                the resolution shall be limited to not more than 10 
                hours, which shall be divided equally between those 
                favoring and those opposing the resolution. A motion 
                further to limit debate is not debatable. An amendment 
                to, or motion to recommit, the resolution is not in 
                order, and it is not in order to move to reconsider the 
                vote by which the resolution is agreed to or disagreed 
                to.
                    (C) No debate on certain motions.--In the Senate, 
                motions to postpone made with respect to the 
                consideration of a resolution and motions to proceed to 
                the consideration of other business shall be decided 
                without debate.
                    (D) Appeals.--Appeals from the decisions of the 
                Chair relating to the application of the rules of the 
                Senate to the procedure relating to a resolution shall 
                be decided without debate.
            (8) Effect of adoption of resolution by other house.--If, 
        before the passage by one House of the Congress of a resolution 
        of that House, it receives from the other House a resolution, 
        then the following procedures apply:
                    (A) The resolution of the other House shall not be 
                referred to a committee and may not be considered in 
                the House receiving it, except in the case of final 
                passage as provided in subparagraph (B)(i).
                    (B) With respect to the resolution described in 
                subparagraph (A) of the House receiving it--
                            (i) the procedure in that House shall be 
                        the same as if no joint resolution had been 
                        received from the other House; but
                            (ii) the vote on final passage shall be on 
                        the resolution of the other House.

SEC. 306. INCREASE IN SPENDING CAPS UNDER TRUST FUND.

    Section 48104(c) of title 49, United States Code, is amended by 
adding at the end thereof the following:
``This subsection shall be applied for fiscal years 1998 and 1999 by 
substituting `zero percent' for `50 percent' in paragraph (1), and by 
substituting `100 percent' for `70 percent'. The preceding sentence 
shall not apply for any fiscal year for which fees imposed under 
section 303 of the Air Traffic Management Performance Improvement Act 
of 1995 are not in effect.''.

SEC. 307. ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY TRUST FUND 
              ACTIVITIES.

    (a) Multiyear Authorizations.--Beginning with fiscal year 1997, any 
authorization of appropriations for an activity for which amounts are 
to be appropriated from the Airport and Airway Trust Fund 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 1997, 
amounts appropriated from the Airport and Airway Trust Fund shall be 
appropriated for periods of 3 fiscal years rather than annually.
                                 <all>
S 1239 IS----2
S 1239 IS----3
S 1239 IS----4
S 1239 IS----5