[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1399 Introduced in Senate (IS)]

  1st Session
                                S. 1399

   To amend title 49, United States Code, to ensure funding for the 
 essential air service program and rural air safety programs, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 7, 1995

Mr. Dorgan (for himself, Mr. Exon, Mr. Rockefeller, Mr. Kerrey, and Mr. 
    Conrad) introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
   To amend title 49, United States Code, to ensure funding for the 
 essential air service program and rural air safety programs, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Air Service Survival Act''.

SEC. 2. 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.

SEC. 3. FUNDING FOR SMALL COMMUNITY AIR SERVICE.

    Section 40117 of title 49, United States Code, is amended by adding 
at the end thereof the following:
    ``(j) Additional Fee.--
            ``(1) Imposition of fee.--Each eligible agency that may 
        impose a passenger facility fee under this section shall impose 
        a 10-cent fee under this subsection for each enplanement to 
        provide funds to support a national aviation system, rural 
        airspace safety, and rural air service.
            ``(2) Fee to be separately accounted for.--The proceeds of 
        fees imposed under this subsection shall be accounted for 
        separately from the proceeds of any fee imposed under 
        subsection (b).
            ``(3) Fees to be used for small community air service.--
                    ``(A) In general.--Fees collected under this 
                subsection shall be immediately made available to the 
                Secretary for use in carrying out the essential air 
                service program under subchapter II of chapter 417 of 
                this title.
                    ``(B) Disposition of excess funds.--Any funds that 
                are not obligated or expended at the end of the fund's 
                fiscal year for the purpose of funding the essential 
                air service program under such subchapter shall be made 
                available to the Federal Aviation Administration for 
                use in improving rural air safety under subchapter I of 
                chapter 417 of this title and shall be used exclusively 
                for projects at rural airports under subchapter II of 
                chapter 417 of this title.
                    ``(C) Compensation of air carriers for acting as 
                collection agents.--The Secretary shall prescribe 
                regulations under which any air carrier or its agent 
                required to collect fees imposed under this section is 
                permitted to retain, out of the amounts collected, an 
                amount equal to the necessary and reasonable expenses 
                (reduced by any interest earned on the deposit of such 
                amounts during the period between collection and 
                remittance) incurred in collecting and handling the 
                fees.''.

SEC. 4. SECRETARY MAY REQUIRE MATCHING LOCAL FUNDS.

    Section 41737 of title 49, United State Code, is amended by adding 
at the end thereof the following:
    ``(f) Matching Funds.--No earlier than 2 years after the date of 
enactment of the Rural Air Service Survival Act, 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.''.

SEC. 5. 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.
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