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

                                                       Calendar No. 363

104th CONGRESS

  2d Session

                                S. 1239

                          [Report No. 104-251]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                             April 10, 1996

 Reported under authority of the order of the Senate of March 29, 1996 
                           with an amendment
                                                       Calendar No. 363
104th CONGRESS
  2d Session
                                S. 1239

                          [Report No. 104-251]

 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

                             April 10, 1996

 Reported under authority of the order of the Senate of March 29, 1996 
                   by Mr. Pressler, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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,

<DELETED>SECTION 1. SHORT TITLE; TABLE OF SECTIONS.</DELETED>

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

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

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

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

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

<DELETED>SEC. 2. DEFINITIONS.</DELETED>

<DELETED>    For the purposes of this Act the following definitions 
shall apply:</DELETED>
        <DELETED>    (1) Administration.--The term ``Administration'' 
        means the Federal Aviation Administration.</DELETED>
        <DELETED>    (2) Administrator.--The term ``Administrator'' 
        means the Administrator of the Federal Aviation 
        Administration.</DELETED>
        <DELETED>    (3) Federal agency.--The term ``Federal agency'' 
        means ``agency'' as defined in section 551(1) of title 5, 
        United States Code.</DELETED>
        <DELETED>    (4) Secretary.--The term ``Secretary'' means the 
        Secretary of Transportation.</DELETED>

<DELETED>SEC. 3. EFFECTIVE DATE.</DELETED>

<DELETED>    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.</DELETED>

             <DELETED>TITLE I--GENERAL PROVISIONS</DELETED>

<DELETED>SEC. 101. FINDINGS.</DELETED>

<DELETED>    Congress finds that:</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (3) The Federal Aviation Administration must 
        become a more efficient, effective, and different organization 
        to meet future challenges.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (9) Absent significant and meaningful reform, 
        future challenges and needs cannot be met.</DELETED>
        <DELETED>    (10) The Federal Aviation Administration must have 
        a new way of doing business.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (13) The existing budget system does not allow for 
        long-term planning or timely acquisition of technology by the 
        Federal Aviation Administration.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (15) All reforms should be designed to help the 
        Federal Aviation Administration become more responsive to the 
        needs of its customers.</DELETED>

<DELETED>SEC. 102. PURPOSES.</DELETED>

<DELETED>    The purposes of this Act are--</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (2) to permit the Federal Aviation Administration, 
        with Congressional review, to establish an innovative program 
        for procurement reform;</DELETED>
        <DELETED>    (3) to permit the Federal Aviation Administration, 
        with Congressional review, to establish an innovative program 
        for personnel reform;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (5) to establish a more autonomous and accountable 
        Federal Aviation Administration within the Department of 
        Transportation; and</DELETED>
        <DELETED>    (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.</DELETED>

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

<DELETED>    (a) In General.--Section 106 of title 49, United States 
Code, is amended--</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (2) by amending subsection (f) to read as 
        follows:</DELETED>
<DELETED>    ``(f) Authority of the Secretary and the Administrator.--
</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Authority of the administrator.--The 
        Administrator--</DELETED>
                <DELETED>    ``(A) is the final authority for carrying 
                out all functions, powers, and duties of the 
                Administration relating to--</DELETED>
                        <DELETED>    ``(i) the appointment and 
                        employment of all officers and employees of the 
                        Administration (other than Presidential and 
                        political appointees);</DELETED>
                        <DELETED>    ``(ii) the acquisition and 
                        maintenance of property and equipment of the 
                        Administration;</DELETED>
                        <DELETED>    ``(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</DELETED>
                        <DELETED>    ``(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);</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(3) Definition of political appointee.--For 
        purposes of this subsection, the term `political appointee' 
        means any individual who--</DELETED>
                <DELETED>    ``(A) is employed in a position on the 
                Executive Schedule under sections 5312 through 5316 of 
                title 5, United States Code;</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(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.''.</DELETED>
<DELETED>    (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.</DELETED>

<DELETED>SEC. 104. REGULATIONS.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (b) Approval of Secretary of Transportation.--</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (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;</DELETED>
                <DELETED>    (B) create a serious inconsistency or 
                otherwise interfere with an action taken or planned by 
                another agency;</DELETED>
                <DELETED>    (C) materially alter the budgetary impact 
                of entitlements, grants, user fees, or loan programs or 
                the rights and obligations of recipients thereof; 
                or</DELETED>
                <DELETED>    (D) raise novel legal or policy issues 
                arising out of legal mandates.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (c) Periodic Review.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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).</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (4) Use of advisory committee.--The Administrator 
        may, in the Administrator's discretion, use an advisory 
        committee to perform the review.</DELETED>

<DELETED>SEC. 105. PERSONNEL AND SERVICES.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (d) Use of Personnel From Other Agencies.--The 
Administrator is authorized to utilize the services of personnel of any 
other Federal agency.</DELETED>
<DELETED>    (e) Voluntary Services.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 106. CONTRACTS.</DELETED>

<DELETED>    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.</DELETED>

<DELETED>SEC. 107. BUDGET.</DELETED>

<DELETED>    (a) In General.--Section 48109 of title 49, United States 
Code, is amended to read as follows:</DELETED>
<DELETED>``Sec. 48109. Budget information and legislative 
              recommendations and comments</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(c) Submission of Budget to Congress.--</DELETED>
        <DELETED>    ``(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.</DELETED>
        <DELETED>    ``(2) Special rule with respect to annual 
        budgets.--The annual budget of the Administration submitted to 
        Congress shall include--</DELETED>
                <DELETED>    ``(A) any modifications made by the 
                Administrator under subsection (b) with respect to the 
                budget; and</DELETED>
                <DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(1) an explanation that states specifically the 
        need for the increase; and</DELETED>
        <DELETED>    ``(2) a statement of any steps taken by the 
        Administration to reduce costs and improve efficiency in order 
        to avoid or limit the increase.''.</DELETED>
<DELETED>    (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:</DELETED>

<DELETED>``48109. Budget information and legislative recommendations 
                            and comments.''.

<DELETED>SEC. 108. FACILITIES.</DELETED>

<DELETED>    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.</DELETED>

<DELETED>SEC. 109. PROPERTY.</DELETED>

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

<DELETED>SEC. 110. SELECT PANEL TO REVIEW INNOVATIVE FUNDING 
              MECHANISMS.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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).</DELETED>

<DELETED>SEC. 111. TRANSFERS OF FUNDS FROM OTHER FEDERAL 
              AGENCIES.</DELETED>

<DELETED>    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.</DELETED>

<DELETED>SEC. 112. MANAGEMENT ADVISORY COUNCIL.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (b) Membership.--The Council shall consist of 15 members, 
who shall consist of--</DELETED>
        <DELETED>    (1) a designee of the Secretary of 
        Transportation;</DELETED>
        <DELETED>    (2) a designee of the Secretary of Defense; 
        and</DELETED>
        <DELETED>    (3) 13 members appointed by the 
        Administrator.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (d) Functions.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (3) Meetings.--The Council shall meet on a regular 
        and periodic basis or at the call of the chairman or of the 
        Administrator.</DELETED>
        <DELETED>    (4) Access to documents and staff.--The 
        Administration may give the Council appropriate access to 
        relevant documents and personnel of the 
        Administration.</DELETED>
<DELETED>    (e) Federal Advisory Committee Act Not To Apply.--The 
Federal Advisory Committee Act (5 U.S.C. App.) does not apply to the 
Council.</DELETED>
<DELETED>    (f) Administrative Matters.--</DELETED>
        <DELETED>    (1) Terms of members.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (B) Initial appointees.--Of the members 
                first appointed by the Administrator--</DELETED>
                        <DELETED>    (i) 4 shall be appointed for terms 
                        of 1 year;</DELETED>
                        <DELETED>    (ii) 5 shall be appointed for 
                        terms of 2 years; and</DELETED>
                        <DELETED>    (iii) 4 shall be appointed for 
                        terms of 3 years.</DELETED>
                <DELETED>    (C) Filling unexpired term.--An individual 
                chosen to fill a vacancy shall be appointed for the 
                unexpired term of the member replaced.</DELETED>
                <DELETED>    (D) Expiration of terms.--A member whose 
                term expires shall continue to serve until the date on 
                which the member's successor takes office.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 113. AIRCRAFT ENGINE STANDARDS.</DELETED>

<DELETED>    Subsection (a)(1) of section 44715 of title 49, United 
States Code, is amended to read as follows:</DELETED>
<DELETED>    ``(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--
</DELETED>
        <DELETED>    ``(A) standards to measure aircraft noise and 
        sonic boom;</DELETED>
        <DELETED>    ``(B) regulations to control and abate aircraft 
        noise and sonic boom; and</DELETED>
        <DELETED>    ``(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.''.</DELETED>

    <DELETED>TITLE II--FEDERAL AVIATION ADMINISTRATION STREAMLINING 
                           PROGRAMS</DELETED>

<DELETED>SEC. 201. INNOVATIVE PROGRAM FOR AIR TRAFFIC CONTROL 
              MODERNIZATION.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (b) Exemption From Procurement Laws.--</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) title III of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 5, and 
                251 through 266);</DELETED>
                <DELETED>    (B) the Office of Federal Procurement 
                Policy Act (41 U.S.C. 401 et seq.);</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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--
                </DELETED>
                        <DELETED>    (i) to contracts for the 
                        procurement of commercial items; or</DELETED>
                        <DELETED>    (ii) in the case of a subcontract 
                        under the innovative program, to subcontracts 
                        for the procurement of commercial 
                        items;</DELETED>
                <DELETED>    (E) the Federal Acquisition Streamlining 
                Act of 1994 (Public Law 103-355);</DELETED>
                <DELETED>    (F) the Service Contract Act;</DELETED>
                <DELETED>    (G) subchapter V of chapter 35 of title 
                31, United States Code, relating to the procurement 
                protest system;</DELETED>
                <DELETED>    (H) the Brooks Automatic Data Processing 
                Act (section 111 of the Federal Property and 
                Administrative Services Act of 1949; 40 U.S.C. 
                759);</DELETED>
                <DELETED>    (I) the Brooks Architect-Engineer Act (40 
                U.S.C. 541-544); and</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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).</DELETED>
<DELETED>    (c) Development of Acquisition Management System.--
</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Requirements.--The acquisition management 
        system to be developed by the Administrator under paragraph (1) 
        shall be--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (B) designed to ensure the best 
                practicable acquisitions in terms of best 
                value.</DELETED>
<DELETED>    (d) Notice to Congress.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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).</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>

<DELETED>SEC. 202. AIR TRAFFIC CONTROL MODERNIZATION REVIEWS.</DELETED>

<DELETED>    (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--</DELETED>
        <DELETED>    (1) is more than 50 percent over the cost goal 
        established for the program;</DELETED>
        <DELETED>    (2) fails to achieve at least 50 percent of the 
        performance goals established for the program; or</DELETED>
        <DELETED>    (3) is more than 50 percent behind schedule as 
        determined in accordance with the schedule goal established for 
        the program.</DELETED>
<DELETED>    (b) Authorized Terminations of Acquisitions.--The 
Administrator shall consider terminating, under the authority of 
subsection (a), any substantial acquisition that--</DELETED>
        <DELETED>    (1) is more than 10 percent over the cost goal 
        established for the program;</DELETED>
        <DELETED>    (2) fails to achieve at least 90 percent of the 
        performance goals established for the program; or</DELETED>
        <DELETED>    (3) is more than 10 percent behind schedule as 
        determined in accordance with the schedule goal established for 
        the program.</DELETED>
<DELETED>    (c) Exception and Report.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 203. INNOVATIVE PROGRAM FOR FEDERAL AVIATION 
              ADMINISTRATION SERVICES.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (b) Exemption From Certain Provisions of Title 5, United 
States Code.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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).</DELETED>
<DELETED>    (c) Development of Personnel Management System.--
</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) to hire, promote, and fire employees 
                as in the private sector;</DELETED>
                <DELETED>    (B) to establish a pay structure as needed 
                to conduct the business of the Administration in an 
                efficient and effective manner within available 
                resources;</DELETED>
                <DELETED>    (C) to provide salaries designed to 
                attract the best qualified employees within available 
                resources;</DELETED>
                <DELETED>    (D) to staff facilities that are difficult 
                to staff;</DELETED>
                <DELETED>    (E) to move personnel to those facilities 
                where they are most needed; and</DELETED>
                <DELETED>    (F) to continue to provide an appropriate 
                framework for labor-management relations concerning 
                terms and conditions of employment.</DELETED>
<DELETED>    (d) Notice to Congress.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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:</DELETED>
        <DELETED>    (1) Section 2302(b) (relating to whistleblower 
        protection).</DELETED>
        <DELETED>    (2) Sections 3308-3320 (relating to veterans' 
        preference)</DELETED>
        <DELETED>    (3) Section 7116(b)(7) (relating to prohibition of 
        the right to strike).</DELETED>
        <DELETED>    (4) Section 7204 (relating to 
        antidiscrimination).</DELETED>
        <DELETED>    (5) Chapter 63 (relating to leave).</DELETED>
        <DELETED>    (6) Chapter 71 (relating to labor-management 
        relations).</DELETED>
        <DELETED>    (7) Chapter 73 (relating to suitability, security, 
        and conduct).</DELETED>
        <DELETED>    (8) Chapter 81 (relating to compensation for work 
        injuries).</DELETED>
        <DELETED>    (9) Chapter 83 (relating to retirement).</DELETED>
        <DELETED>    (10) Chapter 84 (relating to the Federal 
        Employees' Retirement System).</DELETED>
        <DELETED>    (11) Chapter 85 (relating to unemployment 
        compensation).</DELETED>
        <DELETED>    (12) Chapter 87 (relating to life 
        insurance).</DELETED>
        <DELETED>    (13) Chapter 89 (relating to health 
        insurance).</DELETED>
        <DELETED>    (14) Subchapter II of chapter 53 (with respect to 
        the pay of the Administrator).</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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).</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>

      <DELETED>TITLE III--SYSTEM TO FUND CERTAIN FEDERAL AVIATION 
                   ADMINISTRATION FUNCTIONS</DELETED>

<DELETED>SEC. 301. FINDINGS.</DELETED>

<DELETED>    The Congress finds the following:</DELETED>
        <DELETED>    (1) The Federal Aviation Administration is 
        recognized throughout the world as a leader in aviation 
        safety.</DELETED>
        <DELETED>    (2) The Administration certifies aircraft, 
        engines, propellers and other manufactured parts.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (4) The Administration certifies pilot examiners, 
        who are then qualified to determine if a person has the skills 
        necessary to become a pilot.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (7) The Administration each year performs more 
        than 355,000 inspections.</DELETED>
        <DELETED>    (8) The Administration issues more than 655,000 
        pilots licenses and more than 560,000 non-pilot licenses (e.g., 
        mechanics).</DELETED>
        <DELETED>    (9) The Administration's certification means that 
        the product meets the highest standards of safety and 
        reliability.</DELETED>
        <DELETED>    (10) The Administration's certification means 
        aviation-related equipment and services meet the highest 
        standards throughout the world.</DELETED>
        <DELETED>    (11) The Administration's certification is a 
        valuable element for any company to sell aviation-related 
        products throughout the world.</DELETED>
        <DELETED>    (12) The Administration certification constitutes 
        a valuable license, franchise or privilege, and confers many 
        benefits on the holders.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 302. PURPOSES.</DELETED>

<DELETED>    The purposes of this title are--</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (5) to allow the Federal Aviation Administration 
        to develop a fee system based on the cost or value of the 
        services provided;</DELETED>
        <DELETED>    (6) to demonstrate to each segment of the aviation 
        industry the benefits of a cost-based or value-based user fee 
        system;</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 303. USER FEES FOR VARIOUS FEDERAL AVIATION 
              ADMINISTRATION SERVICES.</DELETED>

<DELETED>    (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--
</DELETED>
        <DELETED>    (1) services other than air traffic control 
        services, including safety, certification, security, training, 
        inspection, and other activities;</DELETED>
        <DELETED>    (2) services (other than air traffic control 
        services) provided to a foreign government; and</DELETED>
        <DELETED>    (3) air traffic control services for--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (B) business jets.</DELETED>
<DELETED>    (b) Considerations.--To the extent possible, the 
Administrator, in developing a fee system, shall consider--</DELETED>
        <DELETED>    (1) the impact on segments of the aviation 
        industry; and</DELETED>
        <DELETED>    (2) the fair value, or cost, of the service 
        provided by the Federal Aviation Administration.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (e) Fees Effective 45 Days After Submission.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (i) Repeal.--Sections 45301, 45302, and 70118 of title 49, 
United States Code, are repealed.</DELETED>

<DELETED>SEC. 304. USER FEES FOR AIR TRAFFIC CONTROL 
              SERVICES.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (b) Limitations.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (d) Definitions.--When used in this section:</DELETED>
        <DELETED>    (1) Segment.--The term `segment' refers to--
        </DELETED>
                <DELETED>    (A) commercial airlines;</DELETED>
                <DELETED>    (B) commercial cargo air 
                carriers;</DELETED>
                <DELETED>    (C) business jets;</DELETED>
                <DELETED>    (D) general aviation; and</DELETED>
                <DELETED>    (E) public use.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>

<DELETED>SEC. 305. ADMINISTRATIVE PROVISIONS.</DELETED>

<DELETED>    (a) In General.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Refunds.--The Administrator may refund any fee 
        paid by mistake or any amount paid in excess of that 
        required.</DELETED>
        <DELETED>    (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)--</DELETED>
                <DELETED>    (A) shall be credited to a separate 
                account established in the Treasury and made available 
                for Federal Aviation Administration activities as 
                offsetting collections;</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (C) shall remain available until 
                expended.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) a list of fee collections by the 
                Administration during the preceding fiscal 
                year;</DELETED>
                <DELETED>    (B) a list of activities by the 
                Administration during the preceding fiscal year that 
                were supported by fee expenditures and 
                appropriations;</DELETED>
                <DELETED>    (C) budget plans for significant programs, 
                projects, and activities of the Administration, 
                including out-year funding estimates;</DELETED>
                <DELETED>    (D) any proposed disposition of surplus 
                fees by the Administration; and</DELETED>
                <DELETED>    (E) such other information as those 
                committees consider necessary.</DELETED>
<DELETED>    (b) Congressional Procedure.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (7) Senate procedure.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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:</DELETED>
                <DELETED>    (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).</DELETED>
                <DELETED>    (B) With respect to the resolution 
                described in subparagraph (A) of the House receiving 
                it--</DELETED>
                        <DELETED>    (i) the procedure in that House 
                        shall be the same as if no joint resolution had 
                        been received from the other House; 
                        but</DELETED>
                        <DELETED>    (ii) the vote on final passage 
                        shall be on the resolution of the other 
                        House.</DELETED>

<DELETED>SEC. 306. INCREASE IN SPENDING CAPS UNDER TRUST 
              FUND.</DELETED>

<DELETED>    Section 48104(c) of title 49, United States Code, is 
amended by adding at the end thereof the following:</DELETED>
<DELETED>``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.''.</DELETED>

<DELETED>SEC. 307. ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY TRUST 
              FUND ACTIVITIES.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>

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 1996''.
    (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 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.
Sec. 114. Rural air fare study.

    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.
Sec. 204. Conforming amendment.

   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 funds.
Sec. 307. Advance appropriations for Airport and Airway Trust Fund 
                            activities.
Sec. 308. Sense of the Senate.
Sec. 309. Rural Air Service Survival Act.

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) 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.

    The Congress finds the following:
            (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 it 
        may become more and more difficult to obtain sufficient General 
        Fund contributions to meet the Federal Aviation 
        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 
        monies 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 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, should 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) To the extent that the 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, the Congress should 
        appropriate the difference between such costs and any receipts 
        received from such segment.
            (13) 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.
            (14) An independent, thorough, and complete study and 
        assessment must be performed of the costs to the Federal 
        Aviation Administration driven by each segment of the aviation 
        system for safety and operational services, including the use 
        of the air traffic control system.
            (15) 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.
            (16) The existing budget system does not allow for long-
        term planning or timely acquisition of technology by the 
        Federal Aviation Administration.
            (17) 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.
            (18) All reforms should be designed to help the Federal 
        Aviation Administration become more responsive to the needs of 
        its customers.
            (19) General Federal Aviation Administration functions, 
        including inspections and administrative and overhead costs not 
        directly related to service activities, should continue to be 
        funded by appropriations.

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 publication;
            (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 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 striking subsection (f) 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 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, operation, 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 
                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;
                    ``(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, 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 or the 
amendments made by 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.

    Section 106(f) of title 49, United States Code, as amended by 
section 103, 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 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.--
                            ``(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 $50,000,000 or 
                        more (adjusted annually for inflation beginning 
                        with the year following the date of enactment 
                        of the Air Traffic Management System 
                        Performance Improvement Act of 1996) 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--
                                    ``(I) 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;
                                    ``(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 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 
                the date of enactment of the Air Traffic Management 
                System Performance Improvement Act of 1996 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 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 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. 105. PERSONNEL AND SERVICES.

    Section 106 of title 49, United States Code, is amended by adding 
at the end the following new subsection:
    ``(l) Personnel and Services.--
            ``(1) Officers and employees.--Upon development of a 
        personnel management system under section 40122(c), 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. 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. 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(c), 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) In general.--(i) 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.
                    ``(ii) The Administrator is authorized to provide 
                for incidental expenses, including transportation, 
                lodging, and subsistence for volunteers who provide 
                voluntary services under this subsection.
                    ``(iii) 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. 106. CONTRACTS.

    Section 106(l) of title 49, United States Code, as added by section 
105 of this Act, is amended by adding at the end the following new 
paragraph.
            ``(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 government entity, or any person, firm, associates, 
        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 the 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 Administration. 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 needs of the national transportation 
system. The Administrator 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 doses 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.

    Section 106 of title 49, United States Code, as amended by section 
105 of this Act, is further amended by adding at the end the following 
new subsection:
    ``(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. 109. PROPERTY.

    Section 106 of title 49, United States Code, as amended by section 
108 of this Act, is further amended by adding at the end the following 
new subsection:
    ``(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. 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 the 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 9 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. Such report 
shall specifically take into account the independent studies performed 
pursuant to section 45303(a)(6) of title 49, United States Code, as 
added by section 305 of this Act.
    (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.

    Section 106 of title 49, United States Code, as amended by section 
109 of this Act, is further amended by adding at the end the following 
new subsection:
    ``(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 
this Act 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. 112. MANAGEMENT ADVISORY COUNCIL.

    Section 106 of title 49, United States Code, as amended by section 
111 of this Act, is further amended by adding at the end the following 
new subsection:
    ``(p) Management Advisory Council.--
            ``(1) Establishment.--Within 3 months after the date of 
        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 Federal Aviation Administration 
        management, policy, spending, user fees, 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 appointed by the President after 
                consulting the Senate, representing aviation interests, 
                at least 6 of whom shall represent the interests of the 
                air carrier industry (of which at least 2 of whom shall 
                represent major air carriers with gross revenues under 
                $4,000,000,000, at least 1 of whom shall represent the 
                interests of cargo carriers, and at least 1 of whom 
                shall represent the interests of regional air 
                carriers).
            ``(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) 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 all fees under sections 45301 and 45302, 
                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.
                    ``(C) Meetings.--The Council shall meet on a 
                regular and periodic basis or at the call of the 
                chairman or of the Administrator.
                    ``(D) 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.
            ``(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.''.

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.''.

SEC. 114. 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 
        travelling 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 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.
    (d) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Adjusted air fare.--The term ``adjusted air fare'' 
        means an actual air fare that is adjusted for distance 
        travelled 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.

    TITLE II--FEDERAL AVIATION ADMINISTRATION STREAMLINING PROGRAMS

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

    (a) In General.--Chapter 401 of title 49, United States Code, is 
amended--
            (1) by redesignating section 40120 as section 40123; and
            (2) by inserting after section 40119 the following:
``Sec. 40120. Innovative program for air traffic control modernization
    ``(a) Innovative Program.--The Administrator of the Federal 
Aviation Administration (hereafter in this section referred to as the 
`Administrator') shall develop and implement an innovative program 
under which an acquisition management system is used to procure goods 
and services by the Federal Aviation Administration (hereafter in this 
section referred to as 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) section 3709 of the Revised Statutes (41 
                U.S.C. 5);
                    ``(B) title III of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 251 
                through 266);
                    ``(C) the Office of Federal Procurement Policy Act 
                (41 U.S.C. 401 et seq.);
                    ``(D) 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 
                Administration;
                    ``(E) 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;
                    ``(F) the Federal Acquisition Streamlining Act of 
                1994 (Public Law 103-355);
                    ``(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 Federal Acquisition Regulation and any 
                law that is not listed in subparagraphs (A) through (G) 
                providing authority to promulgate regulations in the 
                Federal Acquisition Regulation.
            ``(2) Exemptions for the department of defense.--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 date 
        of enactment of the Air Traffic Management System Performance 
        Improvement Act of 1996, the Administrator, in consultation 
        with such governmental and nongovernmental experts in 
        acquisition management systems as the Administrator 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, 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;
                    ``(B) designed to ensure the best practicable 
                acquisitions in terms of best value; and
                    ``(C) designed to ensure that services are acquired 
                in the most effective and efficient manner.
    ``(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.--On the date which is 3 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 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.
    ``(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.

    Chapter 401 of title 49, United States Code, as amended by section 
201, is further amended by inserting after section 40120 the following 
new section:
``Sec. 40121. Air traffic control modernization reviews
    ``(a) Required Terminations of Acquisitions.--The Administrator of 
the Federal Aviation Administration (hereafter referred to in this 
section as the `Administrator') shall terminate any program initiated 
after the date of 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 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 acquisition 
        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.

    Chapter 401 of title 49, United States Code, as amended by section 
202, is further amended by inserting after section 40121 the following 
new section:
``Sec. 40122. Innovative program for Federal Aviation Administration 
              services
    ``(a) Innovative Program.--The Administrator of the Federal 
Aviation Administration (hereafter in this section referred to as the 
`Administrator') shall develop and implement an innovative program 
under which a personnel management system is used for the management, 
compensation, and advancement of Federal Aviation Administration 
(hereafter in this section referred to as the `Administration') 
employees.
    ``(b) Exemption From Certain Provisions of Title 5.--
            ``(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.
            ``(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 the Air Traffic Management System Performance 
        Improvement Act of 1996, the Administrator 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 without regard to the limitation 
        imposed by the last sentence of section 3109(b) of such title. 
        In developing the system, the Administrator shall ensure that 
        it responds to the needs of and is consistent with the 
        innovative acquisition management system developed pursuant to 
        section 40120.
            ``(2) Goal.--The goal of the personnel management system to 
        be developed by the Administrator under this section 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.
            ``(3) Consultation and negotiation.--In developing the 
        personnel management system, 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. The 
        negotiation with the exclusive bargaining representatives shall 
be completed on or before the 90th day after the date of enactment of 
the Air Traffic Management System Performance Improvement Act of 1996.
            ``(4) Mediation.--If the Administrator does not reach an 
        agreement under paragraph (3) with the exclusive bargaining 
        representatives on any provision of the personnel management 
        system, 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 shall include in 
        the plan to be submitted to Congress under subsection (d) the 
        objections of the exclusive bargaining representatives and the 
        reasons for the objections.
            ``(5) Cost savings and productivity goals.--In negotiating 
        a new personnel system, 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.
            ``(6) 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.
    ``(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.--On the date which 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.
    ``(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:
            ``(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 the Air Traffic 
Management System Performance Improvement Act of 1996 and ending on the 
date determined under subsection (d)(2).
    ``(j) Labor-Management Agreements.--Except as otherwise provided by 
this title and the Air Traffic Management System Performance 
Improvement Act of 1996, 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.
    ``(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.''.

SEC. 204. CONFORMING AMENDMENT.

    The chapter analysis for chapter 401 of title 49, United States 
Code, is amended by striking the item relating to section 40120 and 
inserting the following new items:

``40120. Innovative program for air traffic control modernization.
``40121. Air traffic control modernization reviews.
``40122. Innovative program for Federal Aviation Administration 
                            services.
``40123. Relationship to other laws.''.

   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 nonpilot licenses (e.g., 
        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 is 
        a valuable element for any company desiring 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. 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 $1,100,000,000. 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 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 Administration;
            (3) to ensure that the funding obtained by user fees set by 
        this title 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 the national aviation 
        system and the services provided by the Administration;
            (5) to allow the 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 
        Administration for the aviation transportation industry; and
            (8) to have the Administration develop fee systems that do 
        not directly impinge upon the nonbusiness jet and noncommercial 
        aspects of the general aviation community.]

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

    (a) In General.--Chapter 453 of title 49, United States Code, is 
amended by striking section 45301 and inserting the following new 
section:
``Sec. 45301. General provisions
    ``(a) In General.--The Administrator of the Federal Aviation 
Administration (hereafter in this section referred to as the 
`Administrator') shall submit to the Congress a performance-based fee 
system, to the maximum extent possible--
            ``(1) not later than 1 year after the date of enactment of 
        the Air Traffic Management System Performance Improvement Act 
        of 1996, for services other than air traffic control services, 
        including training, licensing, regulatory proceedings, and 
        activities directly necessary for certification; and
            ``(2) not later than 6 months after such date of enactment, 
        for--
                    ``(A) services (other than air traffic control 
                services) provided to a foreign government; and
                    ``(B) air traffic control services for flights over 
                the United States or its territories by air carriers 
                that neither arrive at nor depart from an airport in 
                the United States or its territories (other than such 
                flights by foreign government aircraft engaged on 
                official business).
    ``(b) Considerations.--
            ``(1) In general.--To the maximum extent possible, the 
        Administrator, in developing a fee system, shall consider--
                    ``(A) the impact on segments of the aviation 
                industry; and
                    ``(B) the fair value, or cost, of the service 
                provided by the Federal Aviation Administration 
                (hereafter in this section referred to as the 
                ``Administration').
            ``(2) Additional standards for aircraft manufacturing 
        certification fees.--In the case of aircraft manufacturing 
        certification services, in establishing fees the Administrator 
        shall--
                    ``(A) not charge fees for administrative and 
                overhead costs not directly related to service 
                activities;
                    ``(B) consider the effect, both domestically and 
                internationally, of fees on each industry sector;
                    ``(C) provide a basis for reducing user fees, in 
                appropriate cases, when manufacturers provide in-kind 
                services, such as training, to the Administration;
                    ``(D) relate user fees to timeliness of 
                Administration services;
                    ``(E) create reasonable incentives for the 
                Administration, and for payors, to reduce the amount of 
                Administration costs required to perform services; and
                    ``(F) avoid cross-subsidization among industry 
                sectors.
    ``(c) Consultation With Management Advisory Council.--In developing 
proposals under this section, the Administrator shall consult with the 
Management Advisory Council established under section 106(p) and, to 
the maximum extent possible, seek to develop a consensus.
    ``(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 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 45303(c), 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 subsection (a)(1) 
        unless, for the preceding fiscal year, the sum of the outlays 
        from the Airport and Airway Trust Fund exceeds the receipts of 
        the Fund derived from Federal taxes, amounts equivalent to the 
        receipts from which are credited to the Airport and Airway 
        Trust Fund established under section 9502 of the Internal 
        Revenue Code of 1986 (hereafter in this chapter referred to as 
        the `trust fund taxes').
            ``(3) Aircraft manufacturing certification fees not 
        implemented before air traffic control fees.--Notwithstanding 
        any other provision of this Act, the Administrator may not 
        impose a fee under this section for aircraft manufacturing 
        certification services before imposing a fee for air traffic 
        control services under section 45302.
    ``(f) Agreement With Department of Defense.--Within 6 months after 
the date of enactment of the Air Traffic Management System Performance 
Improvement Act of 1996, 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 subsection (a)(1) shall 
terminate 3 years after going into effect, but any amounts collected 
shall remain available until expended.
    ``(h) Additional System Proposals.--Not later 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 106(p) in the 
same manner as under subsection (c). The Administrator shall submit to 
the Congress at the same time as the proposed 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 section 45303(c), and shall terminate 3 years after 
going into effect.
    ``(i) Certain Fees Prohibited.--The Administration may not impose 
fees under subsection (a)(1) for the direct cost of accident 
investigations, or the costs of inspections of or enforcement actions 
initiated against any segment of the aviation industry.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 453 of 
title 49, United States Code, is amended by striking the item relating 
to section 45301 and inserting the following new item:

``45301. General provisions.''.
    (c) Repeal.--
            (1) In general.--Section 70118 of title 49, United States 
        Code, is repealed.
            (2) Conforming amendment.--The chapter analysis for chapter 
        701 of title 49, United States Code, is amended by striking the 
        item relating to section 70118.

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

    (a) In General.--Chapter 453 of title 49, United States Code, as 
amended by section 303 of this Act, is further amended by striking 
section 45302 and inserting the following:
``Sec. 45302. User fees for air traffic control services
    ``(a) In General.--Not later than 1 year after the date of 
enactment of the Air Traffic Management System Performance Improvement 
Act of 1996, the Administrator of the Federal Aviation Administration 
(hereafter in this section referred to as 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 
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. The 
Administrator shall cause a copy of the proposed fee system to be 
printed in the Federal Register upon its submission to the Congress.
    ``(b) Considerations.--To the maximum extent feasible, in 
developing a fee system under this section, the Administrator shall 
consider--
            ``(1) the impact on air fares (including low-fare, high-
        frequency service) and competition;
            ``(2) the existing contributions provided by individual air 
        carriers toward funding of the Federal Aviation Administration 
        and the air traffic control system (through contributions to 
        the Airport and Airway Trust Fund);
            ``(3) the continuation of promoting fair and competitive 
        practices;
            ``(4) the unique circumstances associated with inter island 
        air carrier service in Hawaii;
            ``(5) the impact on service to small communities;
            ``(6) the impact on services provided by regional air 
        carriers; and
            ``(7) several alternative methodologies for calculating 
        fees so as to achieve as fair and reasonable distribution of 
        the costs of service among users.
    ``(c) Limitations.--
            ``(1) Trust fund payors.--Fees imposed under this section 
        on any segment of the aviation industry (other than on flights 
        operated by air carriers within United States territories or 
        between such territories and foreign countries) subject to 
        Federal taxes, amounts equivalent to the receipts of which are 
        credited to the Airport and Airway Trust Fund established under 
        section 9502 of the Internal Revenue Code of 1986 (hereafter in 
        this section referred to as `trust fund taxes') shall take 
        effect on the later of--
                    ``(A) the date established under subsection (d) of 
                this section, or
                    ``(B) the date immediately following the date on 
                which the trust fund taxes paid by that segment 
                terminate.
            ``(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) Exemption for certain aircraft.--No fee may be 
        imposed under this section on sport and recreation aircraft or 
        on agricultural aircraft.
    ``(d) Fees Effective 45 Days After Submission.--Unless disapproved 
by the Congress under section 45303(c), 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.
    ``(e) Definitions.--For the purposes of this section the following 
definitions shall apply:
            ``(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) Business jets.--The term `business jets' means 
        turbine engine aircraft other than rotorcraft and aircraft used 
        exclusively in air carrier service.
            ``(3) Sport and recreation aircraft.--The term `sport and 
        recreation aircraft' means non-powered aircraft, rotorcraft, 
        and reciprocating piston engine aircraft not used to provide 
        air carrier service.
    ``(f) Consultation With Management Advisory Council.--In developing 
proposals under subsection (a) of this section, the Administrator shall 
consult with the Management Advisory Council established under section 
106(p) and, to the maximum extent possible, seek to develop a 
consensus.
    ``(g) Termination.--Fees imposed under this section shall terminate 
3 years after going into effect, but any amounts collected shall remain 
available until expended.
    ``(h) Additional System Proposals.--Not later 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 106(p) in the 
same manner as under subsection (f). 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 section 45303(c), and shall terminate 3 years after 
going into effect.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 453 of 
title 49, United States Code, is amended by striking the item relating 
to section 45302 and inserting after the item relating to section 45301 
the following:

``45302. User fees for air traffic control services.''.

SEC. 305. ADMINISTRATIVE PROVISIONS.

    (a) In General.--Chapter 453 of title 49, United States Code, as 
amended by section 304 of this Act, is further amended by--
            (1) redesignating section 45303 as section 45304; and
            (2) by inserting after section 45302 the following:
``Sec. 45303. Administrative provisions
    ``(a) In General.--
            ``(1) Fees payable to administrator.--All fees imposed and 
        amounts collected under this chapter for services performed, or 
        materials furnished, by the Federal Aviation Administration 
        (hereafter in this section referred to as the `Administration') 
        are payable to the Administrator of the Federal Aviation 
        Administration.
            ``(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 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 the date 
        of enactment of the Air Traffic Management System Performance 
        Improvement Act of 1996 are required to be credited to the 
        General Fund of the Treasury, (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 immediately for 
                expenditure but only for Congressionally authorized and 
                intended purposes; and
                    ``(C) shall remain available until expended.
            ``(4) 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.
            ``(5) Independent studies.--Within 6 months after the date 
        of enactment of the Air Traffic Management System Performance 
        Improvement Act of 1996, the Administrator shall cause to be 
        prepared by persons having no direct financial interest in the 
        results of such studies, independent studies--
                    ``(A) assessing the costs to the Administration 
                occasioned by the provision of services to each segment 
                of the aviation system; and
                    ``(B) reviewing the funding needs and assumptions 
                for operations, capital spending, and airport 
                infrastructure of the Administration, taking into 
                account the degree of funding needed, in view of 
                projected workload increases for the agency, for the 
                Administration to maintain, at a minimum, the current 
                levels and types of operational and safety services it 
                provides, both in terms of quality and timeliness, for 
                the benefit of the aviation community and the traveling 
                public.
            ``(6) Frees not imposed until 6 months after studies 
        completed.--Notwithstanding any provision of law, no fee 
        prescribed by section 45301 or 45302 shall be implemented prior 
        to the date which is 6 months after the date upon which the 
        studies performed pursuant to paragraph (5) of this subsection 
        have been submitted to the Congress.
            ``(7) 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.
            ``(8) Cost reduction and efficiency report.--
                    ``(A) In general.--60 days prior to submission by 
                the Administrator to the Congress of a proposal for 
                establishment, implementation, or expansion in fees 
                imposed on the aviation industry, the Administrator 
                shall submit to the Management Advisory Council 
                established under section 106(p) the report prepared 
                under subparagraph (B).
                    ``(B) Prior to the submission of any proposal for 
                establishment, implementation, or expansion of any fees 
                imposed on the aviation industry, the Administrator 
                shall prepare a report which includes--
                            ``(i) a justification of the need for the 
                        proposed fees;
                            ``(ii) a statement of steps taken by the 
                        Administrator to reduce costs and improve 
                        efficiency within the Administration;
                            ``(iii) an analysis of the impact of any 
                        fee increase on each sector of the aviation 
                        transportation industry; and
                            ``(iv) a comparative analysis of any 
                        decrease in taxes amounts equal to the receipts 
                        from which are credited to the Airport and 
                        Airway Trust Fund established under section 
                        9502 of the Internal Revenue Code of 1986.
    ``(b) Fee Allocation.--In the fee systems established under 
sections 45301 and 45302, no segment of the aviation industry shall pay 
more than its fully allocated costs as determined under subsection 
(a)(5)(A).
    ``(c) 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 45301 or 45302, 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 affect 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.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 453 of 
title 49, United States Code, 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. 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 1997 and 1998 by substituting `80 percent' for 
`50 percent' in paragraph (1), and by substituting `90 percent' for `70 
percent' in paragraph (2).''.

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

    (a) In General.--Part C of subtitle VII of title 49, United States 
Code, is amended by adding at the end the following new chapter:

  ``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 1997, 
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 1997, 
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 VIII of 
title 49, United States Code, is amended by adding at the end the 
following new item:

``482. Advance appropriations for airport and airway trust    48201.''.
facilities.

SEC. 308. SENSE OF THE SENATE.

    It is the sense of the Senate that:
            (1) The Airport and Airway Trust Fund established under 
        section 9502 of the Internal Revenue Code of 1986 contains a 
        $5,000,000,000 surplus. These funds represent moneys that the 
        entire aviation industry has contributed to support the 
        Administration. These funds remain unobligated. The Congress 
        must make every effort to expend the unobligated balances to 
        keep its compact with the aviation industry.
            (2) The 1996 Congressional Budget Resolution prescribes 
        funding for transportation, which, if provided to the several 
        transportation modes based on precedent, will result in 
        severely cutting funds for the aviation system. Such cuts, 
        absent Congressional action, and if not addressed, could have a 
        substantial impact on the ability of the Administration to meet 
        future needs of the aviation industry. Such cuts are likely 
        despite the current surplus of $5,000,000,000 in the Trust 
        Fund.
            (3) In conjunction with any fee systems developed pursuant 
        to this Act and the amendments made by this Act, the Congress 
        must make every effort to apply the unobligated surplus for use 
        by the Administration.

SEC. 309. RURAL AIR SERVICE SURVIVAL ACT.

    (a) Short Title.--This section may be cited as the ``Rural Air 
Service Survival Act''.
    (b) Findings.--The Congress finds that--
            (1) air service in rural areas is essential to a national 
        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 
                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 of title 
49, United States Code, is amended to read as follows:
``Sec. 41742. Essential air service authorization
    ``(a) In General.--Out of the amounts received by the 
Administration from the fees authorized by sections 45301 through 45303 
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, fees imposed under the authority contained in 
sections 45301 through 45303, including the authority contained in 
section 45302(a)(2), shall be used to carry out the essential air 
service program under this subchapter. 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 Federal Aviation 
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.''.
    (d) Conforming Amendment.--The chapter analysis for chapter 417 of 
title 49, United States Code, is amended by striking the item relating 
to section 41742 and inserting the following:

``41742. Essential air service authorization.''.
    (e) Secretary May Require Matching Local Funds.--Section 41737 of 
title 49, United States Code, is amended by adding at the end thereof 
the following:
    ``(e) Matching Funds.--No earlier than 2 years after the effective 
date of section 309 of the Air Traffic Management System Performance 
Improvement Act of 1996, the Secretary may require an eligible agency, 
as defined in section 40117(a)(2) of this title, to provide matching 
funds of up to 10 percent for any payments it receives under this 
subchapter.''.
    (f) Transfer of Essential Air Service Program to FAA.--The 
responsibility for administration of subchapter II of chapter 417 of 
title 49, United States Code, is transferred from the Secretary of 
Transportation to the Administrator of the Federal Aviation 
Administration.
    (g) Effective Date.--The amendments made by this section shall take 
effect on the first day of October next occurring after the date of 
enactment of this Act.