[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1801 Introduced in Senate (IS)]







104th CONGRESS
  2d Session
                                S. 1801

To amend title 49, United States Code, to authorize appropriations for 
the Federal Aviation Administration for fiscal year 1997, to reform the 
        Federal Aviation Administration, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 23, 1996

  Mr. McCain 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 authorize appropriations for 
the Federal Aviation Administration for fiscal year 1997, to reform the 
        Federal Aviation Administration, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Omnibus Aviation 
Act of 1996''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
                TITLE I--FEDERAL AVIATION AUTHORIZATION

                         Part I--Authorizations

Sec. 101. Short title.
Sec. 102. Amendments to title 49, United States Code.
Sec. 103. Federal Aviation Administration operations.
Sec. 104. Air navigation facilities.
Sec. 105. Research and development.
Sec. 106. Airport planning and development and noise compatibility 
                            planning and programs.
           Part II--Airport Improvement Program Modifications

Sec. 121. Definitions; pavement maintenance.
Sec. 122. Military airport program.
Sec. 123. State block grant program.
Sec. 124. Use of noise set-aside funds by non-airport sponsors.
Part III--Extension  of  Airport   and   Airway Trust Fund Expenditure 
                               Authority

Sec. 131. Expenditures from Airport and Airway Trust fund.
                Part IV--Commercial Space Transportation

Sec. 141. Conforming amendments.
Sec. 142. Amendments to findings and purposes.
Sec. 143. Definitions.
Sec. 144. General authority.
Sec. 145. Restrictions on launches, reentries, and operations.
Sec. 146. License applications and requirements.
Sec. 147. Monitoring activities.
Sec. 148. Prohibition, suspension, and end of launches; operations of 
                            launch or reentry sites; reentries.
Sec. 149. Preemption of scheduled launches.
Sec. 150. Administrative hearings and judicial review.
Sec. 151. Acquiring United States Government property and services.
Sec. 152. Liability insurance and financial responsibility 
                            requirements.
Sec. 153. Paying claims exceeding liability insurance and financial 
                            responsibility requirements.
Sec. 154. Enforcement and penalty.
Sec. 155. Relationship to other executive agencies, laws, and 
                            international obligations.
Sec. 156. License applications.
Sec. 157. Nonapplication.
Sec. 158. User fees.
                   Part V--Aviation Insurance Program

Sec. 161. Extension of program.
Sec. 162. Technical amendment.
Sec. 163. Presidential determination.
Sec. 164. Premiums and limitations on coverage and claims.
Sec. 165. Revolving fund.
                   Part VI--Miscellaneous Provisions

Sec. 171. Housing.
Sec. 172. Discretionary authority for criminal history records checks.
Sec. 173. Protection of voluntarily provided information.
                  TITLE II--AIRPORT REVENUE PROTECTION

Sec. 201. Short title.
Sec. 202. Findings; purpose.
Sec. 203. Definitions.
Sec. 204. Restriction on use of airport revenues.
Sec. 205. Regulations; audits and accountability.
Sec. 206. Elimination of certain exceptions.
Sec. 207. Whistleblower protection and payments.
Sec. 208. Qui tam actions.
Sec. 209. Conforming amendments to the Internal Revenue Code of 1986.
    TITLE III--AIR TRAFFIC MANAGEMENT SYSTEM PERFORMANCE IMPROVEMENT

                       Part I--General Provisions

Sec. 301. Short title.
Sec. 302. Findings.
Sec. 303. Purposes.
Sec. 304. Effective date.
Sec. 305. Regulation of civilian air transportation and related 
                            services by the Federal Aviation 
                            Administration and Department of 
                            Transportation.
Sec. 306. Regulations.
Sec. 307. Personnel and services.
Sec. 308. Contracts.
Sec. 309. Budget.
Sec. 310. Facilities.
Sec. 311. Property.
Sec. 312. Select panel to review innovative funding mechanisms.
Sec. 313. Transfers of funds from other Federal agencies.
Sec. 314. Management advisory council.
Sec. 315. Aircraft engine standards.
Sec. 316. Rural air fare study.
     Part II--Federal Aviation Administration Streamlining Programs

Sec. 321. Innovative program for air traffic control modernization.
Sec. 322. Air traffic control modernization reviews.
Sec. 323. Innovative program for Federal Aviation Administration 
                            services.
Sec. 324. Conforming amendment.
   Part III--System to Fund Certain Federal Aviation Administration 
                               Functions

Sec. 331. Findings.
Sec. 332. Purposes.
Sec. 333. User fees for various Federal aviation administration 
                            services.
Sec. 334. User fees for air traffic control services.
Sec. 335. Administrative provisions.
Sec. 336. Increase in spending caps under trust fund.
Sec. 337. Advance appropriations for Airport and Airway Trust Fund 
                            activities.
Sec. 338. Sense of the Senate.
Sec. 339. Rural Air Service Survival Act.
                        TITLE IV--PILOT RECORDS

Sec. 401. Short title.
Sec. 402. Employment investigations of pilot applicants.
Sec. 403. Study of minimum standards for pilot qualifications.
      TITLE V--ABOLITION OF BOARD OF REVIEW AND RELATED AUTHORITY

Sec. 501. Abolition of Board of Review and related authority.
Sec. 502. Sense of the Senate.
Sec. 503. Conforming amendments in other law.
Sec. 504. Definitions.
Sec. 505. Increase in number of Presidentially-appointed members of 
                            board.
Sec. 506. Reconstituted board to function without interruption.
Sec. 507. Status unaffected.
Sec. 508. Operational slots at National Airport.
           TITLE VI--FEDERAL AVIATION ADMINISTRATION FUNDING

Sec. 601. Sense of the Senate regarding the funding of the Federal 
                            aviation administration.

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.

                TITLE I--FEDERAL AVIATION AUTHORIZATION

                         PART I--AUTHORIZATIONS

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Federal Aviation Authorization Act 
of 1996''.

SEC. 102. AMENDMENTS TO TITLE 49, UNITED STATES CODE.

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

SEC. 103. FEDERAL AVIATION ADMINISTRATION OPERATIONS.

    (a) Section 106 is amended--
            (1) in subsection (k), by striking ``the Administration'' 
        and all that follows and inserting ``$4,920,000,000 for fiscal 
        year 1997.''; and
            (2) by adding at the end the following new subsection:
    ``(l) Interaccount Flexibility.--(1) Except as provided in 
paragraph (2), the Administrator may transfer budget authority derived 
from trust funds among appropriations authorized by subsection (k) and 
sections 48101 and 48102, if the aggregate estimated outlays in such 
accounts in the fiscal year in which the transfers are made will not be 
increased as a result of such transfer.
    ``(2) The transfer of budget authority under paragraph (1) may be 
made only to the extent that outlays do not exceed the aggregate 
estimated outlays.
    ``(3) A transfer of budget authority under paragraph (1) may not 
result in a net decrease of more than 5 percent, or a net increase of 
more than 10 percent, in the budget authority available under any 
appropriation involved in that transfer.
    ``(4) Any action taken pursuant to this section shall be treated as 
a reprogramming of funds that is subject to review by the appropriate 
committees of the Congress.''.
    (b) Section 48104(b) is amended--
            (1) by striking ``(b) Limitation for Fiscal Years 1993'' 
        and inserting ``(b) Limitation''; and
            (2) by striking ``for fiscal year 1993''.
    (c) Section 48108 is amended by striking subsection (c).

SEC. 104. AIR NAVIGATION FACILITIES.

    Section 48101(a) is amended--
            (1) in paragraph (4), by striking the period at the end and 
        inserting ``; and''; and
            (2) by adding at the end the following new paragraph:
            ``(5) For the fiscal years ending September 30, 1991-1997, 
        $17,918,000,000.''.

SEC. 105. RESEARCH AND DEVELOPMENT.

    Section 48102(a) is amended by striking ``title:'' and all that 
follows through the end of the subsection and inserting ``title, for 
fiscal year 1997, $195,700,000.''.

SEC. 106. AIRPORT PLANNING AND DEVELOPMENT AND NOISE COMPATIBILITY 
              PLANNING AND PROGRAMS.

    (a) In General.--Section 48103 is amended--
            (1) by striking ``and $21,958,500,000'' and inserting 
        ``$19,864,500,000 (which reflects the fiscal year 1995 
        rescission of $2,094,000,000)''; and
            (2) by inserting ``, and $21,664,500,000 for fiscal years 
        ending before October 1, 1997'' after ``October 1, 1996''.
    (b) Project Grant Authority.--Section 47104(c) is amended by 
striking ``1996'' and inserting ``1997''.

           PART II--AIRPORT IMPROVEMENT PROGRAM MODIFICATIONS

SEC. 121. DEFINITIONS; PAVEMENT MAINTENANCE.

    (a) In General.--Section 47102(3)--
            (1) in subparagraph (A)--
                    (A) in clause (i), by striking ``and'' after 
                ``hazard;'';
                    (B) in clause (ii), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following new clause:
                            ``(iii) maintaining runways under a project 
                        sponsored by a State pursuant to section 
                        47132.'';
            (2) in subparagraph (E), by inserting ``or under section 
        40117'' before the period at the end; and
            (3) in subparagraph (F), by striking ``paid for by a grant 
        under this subchapter and''.
    (b) Pavement Maintenance.--
            (1) In general.--Chapter 471 of title 49 is amended by 
        adding the following section at the end of subchapter I:
``Sec. 47132. Pavement maintenance
    ``(a) In General.--The Administrator of the Federal Aviation 
Administration shall prescribe regulations to carry out a pavement 
maintenance pilot project to preserve and extend the useful life of 
runways and taxiways at airports for which apportionments are made 
under section 47114(d). The regulations shall provide that the 
Administrator may designate not more than 10 projects annually. The 
regulations shall provide criteria for the Administrator to use in 
choosing the projects. Such criteria shall include provisions for 
ensuring that the projects chosen are from areas with different 
climates and soil types.
    ``(b) Effective Date.--This section shall be effective beginning on 
the date of enactment of the Omnibus Aviation Act of 1996 and ending on 
September 30, 1999.''.
            (2) Conforming amendment.--The chapter analysis for 
        subchapter I of chapter 471 is amended by inserting after the 
        item relating to section 47131 the following new item:

``47132. Pavement maintenance.''.
    (c) Definition of eligible airport-related project.--Section 
40117(a)(3) is amended--
            (1) by striking ``; and'' at the end of subparagraph (E) 
        and inserting a period by striking subparagraph (F).

SEC. 122. MILITARY AIRPORT PROGRAM.

    (a) Special Apportionment Categories.--Section 47117(e)(1)(E) is 
amended by striking ``and 1996'' and inserting ``1996, and 1997''.
    (b) Parking Lots, Fuel Farms, and Utilities.--Subsection (f) of 
section 47118 is amended by striking ``the fiscal years ending 
September 30, 1993-1996,'' and inserting ``for fiscal years beginning 
after September 30, 1992,''.

SEC. 123. STATE BLOCK GRANT PROGRAM.

    Section 47128 is amended in subsection (d) by striking ``1996'' and 
inserting ``1997''.

SEC. 124. USE OF NOISE SET-ASIDE FUNDS BY NON-AIRPORT SPONSORS.

    Section 47505 is amended by--
            (1) redesignating subsection (b) as subsection (c);
            (2) in subsection (c), as so redesignated, by striking 
        ``subsection (a) of''; and
            (3) by inserting after subsection (a) the following new 
        subsection:
    ``(b) Grants to Non-Airport Sponsors.--
            ``(1) Authority.--The Secretary may make a grant to a State 
        or unit of local government for preparation of a land use 
        compatibility plan or implementation of a land use 
        compatibility project.
            ``(2) Eligibility.--
                    ``(A) In general.--In order to be eligible to 
                receive a grant under this subsection for a land use 
                compatibility plan or project, a State or unit of local 
                government may not be the owner or operator of the 
                airport with which the plan or project is associated.
                    ``(B) Planning authority.--In order to be eligible 
                to receive a grant under this subsection for a land use 
                compatibility plan, a State or unit of local government 
                must have authority to plan and adopt land use control 
                measures, including zoning, in the planning area.
            ``(3) Coordination of planning activities.--A land use 
        compatibility plan prepared by a State or unit of local 
        government using amounts from grants made available under this 
        subsection may not duplicate or be inconsistent with an airport 
        noise compatibility program prepared by an airport operator 
        under this chapter or with other planning carried out by the 
        airport. The State or unit of local government shall consult 
        with the owner or operator of the airport with which the plan 
        is associated regarding any recommended land use compatibility 
        measure identified in the plan and any aviation data on which 
        such recommendation is made.
            ``(4) Approval of airport owner or operator required.--The 
        Administrator may make a grant to a State or unit of local 
        government under this subsection for a land use compatibility 
        plan or project only after receiving the approval of the owner 
        or operator of the airport with which the plan or project is 
        associated. Such approval shall be based on whether the plan or 
        program, including the use of any noise exposure contours on 
        which land use planning or projects are based, has been 
        coordinated with the airport and is consistent with airport 
operation and planning.
            ``(5) Written assurances.--The Administrator may make a 
        grant to a State or unit of local government under this 
        subsection only after receiving from the State or unit of local 
        government such written assurances as the Administrator 
        determines to be necessary to achieve the purposes of this 
        subsection.
            ``(6) Guidelines.--The Administrator may establish 
        guidelines in carrying out this subsection.
            ``(7) Definitions.--In this subsection, the following 
        definitions apply:
                    ``(A) Compatible land use.--The term `compatible 
                land use' means land use that is normally compatible 
                with--
                            ``(i) the noise levels associated with an 
                        airport, as established under this chapter;
                            ``(ii) airport design standards issued by 
                        the Administrator; and
                            ``(iii) regulations promulgated under 
                        section 44718 of this title.
                    ``(B) Land use compatibility plan.--The term `land 
                use compatibility plan' means the product of a process 
                to determine the extent, type, nature, location, and 
                timing of measures to improve the compatibility of land 
                use with the existing forecast level of aviation 
                activity at an airport.
                    ``(C) Land use compatibility project.--The term 
                `land use compatibility project' means a project that 
                is contained in a land use compatibility plan and 
                determined by the Administrator to enhance compatible 
                land use.''.

PART III--EXTENSION  OF  AIRPORT   AND   AIRWAY TRUST FUND EXPENDITURE 
                               AUTHORITY

SEC. 131. EXPENDITURES FROM AIRPORT AND AIRWAY TRUST FUND.

    Section 9502(d)(1) of the Internal Revenue Code of 1986 (relating 
to expenditures from Airport and Airway Trust Fund) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``1996'' and inserting ``1997''; and
            (2) in subparagraph (A) by inserting ``or under the Federal 
        Aviation Authorization Act of 1996'' after ``Administration 
        Authorization Act of 1994''.

                PART IV--COMMERCIAL SPACE TRANSPORTATION

SEC. 141. CONFORMING AMENDMENTS.

    The chapter analysis for chapter 701 is amended--
            (1) by striking the item relating to section 70104 and 
        inserting the following:

``70104. Restrictions on launches, operations, and reentries.'';
            (2) by striking the item relating to section 70108 and 
        inserting the following:

``70108. Prohibition, suspension, and end of launches; operation of 
                            launch sites and reentry sites; 
                            reentries.'';
        and
            (3) by striking the item relating to section 70109 and 
        inserting the following:

``70109. Preemption of scheduled launches and reentries.''.

SEC. 142. AMENDMENTS TO FINDINGS AND PURPOSES.

    Section 70101 is amended--
            (1) in subsection (a)--
                    (A) in paragraph (3), by inserting ``microgravity 
                research,'' after ``information services,'';
                    (B) in paragraph (4)--
                            (i) by inserting ``commercial space 
                        transportation services, including'' after 
                        ``providing''; and
                            (ii) by inserting a comma after 
                        ``associated services'';
                    (C) in paragraph (5)--
                            (i) by inserting ``commercial space 
                        transportation, including'' after ``development 
                        of''; and
                            (ii) by inserting ``, reentry vehicles,'' 
                        after ``launch vehicles'';
                    (D) in paragraph (6), by inserting ``and reentry'' 
                after ``launch'';
                    (E) in paragraph (7), by inserting ``, reentries,'' 
                after ``launches'' each place that term appears;
                    (F) in paragraph (8)--
                            (i) by inserting ``, reentry sites,'' after 
                        ``launch sites''; and
                            (ii) by striking the comma after ``launch 
                        services'' and inserting ``and reentry 
                        services,''; and
                    (G) in paragraph (9)--
                            (i) by inserting ``reentry sites,'' after 
                        ``launch sites,''; and
                            (ii) by inserting ``and reentry site'' 
                        after ``launch site'';
            (2) in subsection (b)--
                    (A) in paragraph (2)--
                            (i) in the matter preceding clause (i)--
                                    (I) by inserting ``commercial space 
                                transportation services, including'' 
                                after ``to provide'';
                                    (II) by inserting ``, reentry 
                                vehicles,'' after ``launch vehicles''; 
                                and
                                    (III) by inserting a comma after 
                                ``associated services''; and
                            (ii) in subparagraph (A), by striking 
                        ``commercial launch licenses'' and inserting 
                        ``commercial licenses'';
            (3) in paragraph (3)--
                    (A) by inserting ``and reentry'' after ``commercial 
                launch''; and
                    (B) by striking ``commercial launch licenses'' and 
                inserting ``commercial licenses''; and
            (4) in paragraph (4), by inserting ``and development of 
        reentry sites,'' after ``launch-site support facilities,''.

SEC. 143. DEFINITIONS.

    Section 70102 is amended--
            (1) in paragraph (3), by inserting ``, including a reentry 
        vehicle and its payload, if any'' after ``any payload'';
            (2) in paragraph (8), by inserting ``, including a reentry 
        vehicle and its payload, if any,'' after ``an object'';
            (3) by redesignating paragraphs (10) through (12) as 
        paragraphs (14) through (16), respectively;
            (4) by inserting after paragraph (9) the following new 
        paragraphs:
            ``(10) `reenter' and `reentry' mean to return or attempt to 
        return, purposefully, a reentry vehicle and its payload, if 
        any, from Earth orbit or outer space to Earth.
            ``(11) `reentry services' means--
                    (A) those activities involved in the preparation of 
                a reentry vehicle and its payload, if any, for reentry; 
                and
                    (B) the conduct of a reentry.
            ``(12) `reentry site' means the location on Earth to which 
        a reentry vehicle is intended to return (as defined in a 
        license the Secretary of Transportation issues or transfers 
        under this chapter).
            ``(13) `reentry vehicle' means a vehicle designed to 
        reenter from Earth orbit or outer space to Earth substantially 
        intact.''; and
            (5) in paragraph (15), as so redesignated, by inserting 
        ``or reentry'' after ``launch'' each place it appears.

SEC. 144. GENERAL AUTHORITY.

    Section 70103(b) is amended--
            (1) by striking the subsection heading and inserting the 
        following:
    ``(b) Facilitating Space Transportation.--''; and
            (2) in paragraph (1)--
                    (A) by inserting ``the provision of'' after 
                ``promote''; and
                    (B) by striking ``launches'' and inserting 
                ``transportation services''.

SEC. 145. RESTRICTIONS ON LAUNCHES, REENTRIES, AND OPERATIONS.

    Section 70104 is amended--
            (1) by striking the section heading and inserting the 
        following:
``Sec. 70104. Restrictions on launches, operations, and reentries'';
            (2) in subsection (a)--
                    (A) in paragraph (1), by inserting ``or reentry 
                site or to reenter a reentry vehicle,'' after ``operate 
                a launch site'' each place it appears; and
                    (B) in paragraphs (3) and (4), by inserting ``or 
                reentry'' after ``over the launch or operation'' each 
                place it appears;
            (3) in subsection (b)--
                    (A) by striking ``launch license'' and inserting 
                ``license'';
                    (B) by inserting ``or reenter'' after ``may 
                launch''; and
                    (C) by inserting ``or reentering'' after ``related 
                to launching''; and
            (4) in subsection (c)--
                    (A) by striking the subsection heading and 
                inserting the following:
            ``(c) Preventing Launches or Reentries.--''; and
                    (B) by inserting ``or reentry'' after ``the 
                launch'' each place that term appears.

SEC. 146. LICENSE APPLICATIONS AND REQUIREMENTS.

    Section 70105(b) is amended--
            (1) in paragraph (1), by inserting ``or reentry site or the 
        reentry of a reentry vehicle'' after ``operation of a launch 
        site''; and
            (2) in paragraph (2)(A), by inserting ``or reentry'' after 
        ``or operation''.

SEC. 147. MONITORING ACTIVITIES.

    Section 70106(a) is amended--
            (1) by inserting ``or reentry site'' after ``at a launch 
        site''; and
            (2) by inserting ``or reentry vehicle'' after ``a launch 
        vehicle'' each place that term appears.

SEC. 148. PROHIBITION, SUSPENSION, AND END OF LAUNCHES; OPERATIONS OF 
              LAUNCH OR REENTRY SITES; REENTRIES.

    Section 70108 is amended--
            (1) by striking the section heading and inserting the 
        following:
``Sec. 70108. Prohibition, suspension, and end of launches; operation 
              of launch or reentry sites; reentries''; and
            (2) in subsection (a)--
                    (A) by inserting ``or reentry site, or reentry of a 
                reentry vehicle,'' after ``operation of a launch 
                site''; and
                    (B) by striking ``launch or operation'' and 
                inserting ``launch, reentry, or operation''.

SEC. 149. PREEMPTION OF SCHEDULED LAUNCHES.

    Section 70109 is amended--
            (1) by striking the section heading and inserting the 
        following:
``Sec. 70109. Preemption of scheduled launches and reentries'';
            (2) in subsection (a)--
                    (A) by inserting ``or reentry'' after ``ensure that 
                a launch'';
                    (B) by inserting ``, reentry site,'' after 
                ``Government launch site'';
                    (C) by inserting ``or reentry date commitment'' 
                after ``launch date commitment'';
                    (D) by inserting ``or reentry'' after ``obtained 
                for a launch''; and
                    (E) by adding at the end the following: ``A 
                licensee or transferee preempted from access to a 
                reentry site shall not be required to pay the 
                Government agency responsible for the preemption any 
                amount for reentry services attributable only to the 
                scheduled reentry prevented by the preemption.''; and
            (3) in subsection (c), by inserting ``or reentry'' after 
        ``prompt launching''.

SEC. 150. ADMINISTRATIVE HEARINGS AND JUDICIAL REVIEW.

    Section 70110 is amended in subsection (a)--
            (1) in paragraph (2), by inserting ``or reentry'' after 
        ``prevent the launch''; and
            (2) in paragraph (3)(B), by inserting ``or reentry site, or 
        reentry of a reentry vehicle,'' after ``operation of a launch 
        site''.

SEC. 151. ACQUIRING UNITED STATES GOVERNMENT PROPERTY AND SERVICES.

    Section 70111 is amended--
            (1) in subsection (a), by inserting ``or reentry services'' 
        after ``launch services'' each place it appears;
            (2) in subsection (b)--
                    (A) in paragraph (1), by inserting ``or reentry'' 
                after ``commercial launch'' each place it appears; and
                    (B) in paragraph (2)(C), by inserting ``or reentry 
                services'' after ``launch services''; and
            (3) in subsection (d)--
                    (A) by inserting ``or reentry vehicle,'' after 
                ``launch vehicle'' each place it appears;
                    (B) by striking ``its payload'' and inserting ``or 
                the payload of that vehicle''; and
                    (C) by inserting ``or reentry'' after ``for 
                launch''.

SEC. 152. LIABILITY INSURANCE AND FINANCIAL RESPONSIBILITY 
              REQUIREMENTS.

    Section 70112 is amended--
            (1) in subsection (a)(3), by inserting ``or reentry'' after 
        ``to one launch'';
            (2) in subsections (a)(4) and (b) (1) and (2), by inserting 
        ``or reentry services'' after ``launch services'' each place it 
        appears;
            (3) in subsection (b) (1) and (2), by inserting 
        ``applicable'' after ``carried out under the'';
            (4) in subsection (d), by striking ``Committee on Science, 
        Space, and Technology'' and inserting ``Science Committee''; 
        and
            (5) in subsection (e)--
                    (A) by striking the subsection heading and 
                inserting the following:
    ``(e) Launches Involving Government Facilities and Personnel.--''; 
and
                    (B) by inserting ``or reentry site or a reentry'' 
                after ``operation of a launch site''.

SEC. 153. PAYING CLAIMS EXCEEDING LIABILITY INSURANCE AND FINANCIAL 
              RESPONSIBILITY REQUIREMENTS.

    Section 70113 is amended--
            (1) in subsection (a), by inserting ``or reentry'' after 
        ``related to one launch''; and
            (2) in subsection (d), by inserting ``or reentry'' after 
        ``one launch'' each place it appears.

SEC. 154. ENFORCEMENT AND PENALTY.

    Section 70115(b)(1)(D)(i) is amended--
            (1) by inserting ``reentry site,'' after ``launch site,''; 
        and
            (2) by inserting ``or reentry vehicle'' after ``launch 
        vehicle'' each place it appears.

SEC. 155. RELATIONSHIP TO OTHER EXECUTIVE AGENCIES, LAWS, AND 
              INTERNATIONAL OBLIGATIONS.

    Section 70117 is amended--
            (1) in subsection (a), by inserting ``or reentry site or 
        reenter a reentry vehicle'' after ``operate a launch site'';
            (2) in subsection (d), by inserting ``or reentry'' after 
        ``space launch'';
            (3) in subsection (f)--
                    (A) by striking the subsection heading and 
                inserting the following:
    ``(f) Launch Not an Export and Reentry Not an Import.--'';
                    (B) by inserting ``, reentry vehicle,'' after ``A 
                launch vehicle'';
                    (C) by inserting ``or reentered'' after ``is 
                launched'';
                    (D) by inserting ``or reentry'' after ``of the 
                launch'';
                    (E) by inserting ``or import, respectively,'' after 
                ``an export''; and
                    (F) by inserting ``or imports'' after ``law 
                controlling exports''; and
            (4) in subsection (g)--
                    (A) in paragraph (1), by striking ``a launch, 
                operation of a launch vehicle or launch site,'' and 
                inserting ``a launch, reentry, operation of a launch 
                vehicle or reentry vehicle, or of a launch site or 
                reentry site,''; and
                    (B) in paragraph (2), by inserting ``reentry,'' 
                after ``launch,''.

SEC. 156. LICENSE APPLICATIONS.

    Section 70105, as amended by section 146 of this title, is further 
amended--
            (1) in subsection (a)--
                    (A) by striking the subsection heading and 
                inserting the following:
    ``(a) License Applications.--'';
                    (B) by inserting ``(1)'' before ``A person may 
                apply'';
                    (C) by striking ``receiving an application'' both 
                places it appears and inserting ``accepting an 
                application in accordance with subsection (b)(2)(D)''; 
                and
                    (D) by adding at the end the following new 
                paragraph:
    ``(2) In carrying out the responsibilities under paragraph (1), the 
Secretary may establish procedures for a person to request a safety 
approval for a launch vehicle, reentry vehicle, or a safety system, 
procedure, service or personnel that may be used in conducting licensed 
commercial space transportation activities.''; and
            (2) in subsection (b)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (B), by striking 
                        ``and;'' and inserting a semicolon;
                            (ii) in subparagraph (C), by striking the 
                        period at the end and inserting ``; and''; and
                            (iii) by adding at the end the following 
                        new subparagraph:
                    ``(D) regulations establishing criteria for 
                accepting an application for a license under this 
                chapter.''; and
                    (B) in paragraph (3), by striking ``waive a 
                requirement'' and inserting ``waive a requirement to 
                obtain a license or any other requirement under this 
                subsection''.

SEC. 157. NONAPPLICATION.

    Section 70117(g) is amended--
            (1) by striking ``or'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``; or''; and
            (3) by adding at the end the following new paragraph:
            ``(3) any amateur and similar small rocket activities, as 
        defined by the Secretary in regulations.''.

SEC. 158. USER FEES.

    Section 70119 is amended to read as follows:
``Sec. 70119. Authorization of appropriations
    ``Such sums as are necessary to carry out this chapter are 
authorized to be appropriated to the Department of Transportation.''.

                   PART V--AVIATION INSURANCE PROGRAM

SEC. 161. EXTENSION OF PROGRAM.

    Section 44310 is amended by striking ``1997'' and inserting 
``2002''.

SEC. 162. TECHNICAL AMENDMENT.

    Section 44302(a)(2) is amended in the first sentence by striking 
``as determined by the Secretary'' and inserting ``, as determined in 
accordance with reasonable business practices in the commercial 
insurance industry''.

SEC. 163. PRESIDENTIAL DETERMINATION.

    Section 44302(b) is amended to read as follows:
    ``(b) Condition for Provision of Insurance or Reinsurance.--The 
Secretary may provide insurance or reinsurance under subsection (a) 
only after the President makes a determination that the continued 
operation of the American aircraft or foreign-flag aircraft to be 
insured or reinsured is necessary to carry out the foreign policy of 
the United States Government.''.

SEC. 164. PREMIUMS AND LIMITATIONS ON COVERAGE AND CLAIMS.

    Section 44306(b) is amended by striking ``if the President 
decides,'' and inserting ``after the Secretary notifies the President 
and consults with appropriate officials of interested departments, 
agencies, and instrumentalities of the United States Government,''.

SEC. 165. REVOLVING FUND.

    Section 44307 is amended by adding at the end the following new 
subsection:
    ``(e) Authority to Borrow Funds.--
            ``(1) In general.--The Secretary of Transportation is 
        authorized to borrow from the Treasury such sums as may be 
        necessary to pay amounts of any verified insurance claims for 
insurance issued under this chapter in excess of the funds that are 
available from the revolving fund under this section.
            ``(2) Payment.--Upon receipt of a request of the Secretary 
        of Transportation to borrow funds under paragraph (1), the 
        Secretary of the Treasury shall pay the Secretary the amount 
        specified in that paragraph.
            ``(3) Notification.--Before exercising the borrowing 
        authority under paragraph (1), the Secretary of Transportation 
        shall notify the Committee on Transportation and Infrastructure 
        of the House of Representatives and the Committee on Commerce, 
        Science, and Transportation of the Senate.''.

                   PART VI--MISCELLANEOUS PROVISIONS

SEC. 171. HOUSING.

    Section 40110(a) is amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(4) may--
                    ``(A) acquire interests in housing units outside 
                the contiguous United States, even if there is an 
                obligation after that acquisition to pay necessary and 
                reasonable fees duly assessed upon such units, 
                including fees related to operation, maintenance, 
                taxes, and insurance, notwithstanding section 1341 of 
                title 31, if the Administrator determines that 
                acquisition of an interest in a housing unit with such 
                continuing obligation is the most cost-beneficial means 
                of providing such accommodation; and
                    ``(B) pay such fees, when due, from any amounts 
                made available to the Administrator.''.

SEC. 172. DISCRETIONARY AUTHORITY FOR CRIMINAL HISTORY RECORDS CHECKS.

    (a) In General.--Section 44936(a)(1) is amended--
            (1) by striking ``(1)'' and inserting ``(1)(A)'';
            (2) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively; and
            (3) by adding at the end the following:
                    ``(B) The Administrator may require by regulation 
                that an employment investigation, including a criminal 
                history record check in cases in which the employment 
                investigation reveals a gap in employment, be conducted 
                for individuals who will be responsible for screening 
                passengers and property under section 44901 of this 
                title.''.
    (b) Applicability.--The amendment made by subsection (a)(3) shall 
not apply to individuals hired before the date of the enactment of this 
Act.

SEC. 173. PROTECTION OF VOLUNTARILY PROVIDED INFORMATION.

    (a) In General.--Section 40119 is amended--
            (1) by striking the section heading and inserting the 
        following:
``Sec. 40119. Safety, security, and research analysis'';
            (2) in subsection (b)(1)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by inserting ``safety,'' before 
                        ``security or research and development 
                        activities''; and
                            (ii) by striking ``under section 44501(a)'' 
                        and all that follows through ``of this title'';
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(D) inhibit the submission to the Administrator 
                of information that--
                            ``(i) is provided voluntarily; and
                            ``(ii) the Administrator finds could 
                        promote aviation safety or security.''.
    (b) Conforming Amendment.--The chapter analysis of chapter 401 is 
amended by striking the item relating to section 40119 and inserting 
the following:

``40119. Safety, security, and research analysis.''.

                  TITLE II--AIRPORT REVENUE PROTECTION

SEC. 201. SHORT TITLE.

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

SEC. 202. FINDINGS; PURPOSE.

    (a) In General.--The Congress finds that--
            (1) section 47107 of title 49, United States Code, 
        prohibits the diversion of certain revenue generated by a 
        public airport as a condition of receiving a project grant;
            (2) a grant recipient that uses airport revenue for 
        purposes that are not airport related in a manner inconsistent 
        with chapter 471 of title 49, United States Code, illegally 
        diverts airport revenues;
            (3) any diversion of airport revenues in violation of the 
        condition referred to in paragraph (1) undermines the interest 
        of the United States in promoting a strong national air 
        transportation system that is responsive to the needs of 
        airport users;
            (4) the Secretary and the Administrator have not enforced 
        airport revenue diversion rules adequately;
            (5) despite attempts by the Congress to halt the illegal 
        diversion of revenues referred to in paragraph (1), including 
        the enactment of laws to strengthen the enforcement authority 
        of the Department of Transportation (including the Federal 
        Aviation Administration), such illegal airport revenue 
        diversion continues to occur;
            (6) sponsors who have been found to have illegally diverted 
        airport revenues have not reimbursed airports in a timely 
        manner;
            (7) sponsors are openly and publicly seeking ways to divert 
        additional airport revenues; and
            (8) to the detriment of the United States Treasury, the 
        Secretary and the Administrator have failed to seek adequately 
        the return of illegally diverted airport revenues referred to 
        in paragraph (1).
    (b) Purpose.--The purpose of this title is to ensure that airport 
users are not burdened with hidden taxation for unrelated municipal 
services and activities by--
            (1) eliminating the ability of any State or political 
        subdivision thereof that is a recipient of a project grant to 
        divert airport revenues for purposes that are not related to an 
        airport, in violation of section 47107 of title 49, United 
        States Code;
            (2) imposing financial reporting requirements that are 
        designed to identify instances of illegal diversions referred 
        to in paragraph (1);
            (3) establishing a statute of limitations for airport 
        revenue diversion actions;
            (4) clarifying limitations on revenue diversion that is 
        permitted under chapter 471 of title 49, United States Code; 
        and
            (5) establishing clear penalties and enforcement mechanisms 
        for identifying and prosecuting airport revenue diversion.

SEC. 203. DEFINITIONS.

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

SEC. 204. RESTRICTION ON USE OF AIRPORT REVENUES.

    (a) In General.--Chapter 471 of title 49, United States Code, as 
amended by section 121(b) of this Act, is further amended by adding at 
the end of subchapter I the following new section:
``Sec. 47133. Restriction on use of revenues
    ``(a) Prohibition.--Local taxes on aviation fuel (except taxes in 
effect on December 30, 1987) or the revenues generated by an airport 
that is the subject of Federal assistance or that operates pursuant to 
an airport operating certificate issued under section 44706 may not be 
expended for any purpose other than the capital or operating costs of--
            ``(1) the airport;
            ``(2) the local airport system; or
            ``(3) any other local facility that is owned or operated by 
        the person or entity that owns or operates the airport that is 
        directly and substantially related to the air transportation of 
        passengers or property.
    ``(b) Exceptions.--
            ``(1) In general.--Subsection (a) shall not apply with 
        respect to any provision of law enacted before September 3, 
        1982, that--
                    ``(A) controls financing by the owner or operator, 
                or a covenant or assurance in a debt obligation issued 
                not later than September 2, 1982, by the owner or 
                operator; and
                    ``(B) provides that the revenues, including local 
                taxes on aviation fuel at public airports, from any of 
                the facilities of the owner or operator involved 
                (including the airport of the owner or operator) be 
                used to support both the airport and general debt 
                obligations of other facilities of the owner or 
                operator.
            ``(2) Sunset.--This subsection shall have no force and 
        effect beginning on the earlier of--
                    ``(A) the date on which all debt obligations 
                covered under this subsection are either retired or 
                refinanced; or
                    ``(B) the date that is 10 years after the date of 
                enactment of the Airport Revenue Protection Act of 
                1996.
    ``(c) Rule of Construction.--Nothing in this section may be 
construed to prevent the use of a State tax on aviation fuel to support 
a State aviation program or the use of airport revenue on or off the 
airport for a noise mitigation purpose.''.
    (b) Conforming Amendment.--The chapter analysis for subchapter I of 
chapter 471 of title 49, United States Code, is amended by adding at 
the end the following new item:

``47133. Restriction on use of revenues.''.

SEC. 205. REGULATIONS; AUDITS AND ACCOUNTABILITY.

    (a) In General.--Section 47107 of title 49, United States Code, is 
amended by adding at the end the following new subsections:
    ``(m) Audit Certification.--
            ``(1) In general.--The Secretary of Transportation 
        (hereafter in this section referred to as the `Secretary'), 
        acting through the Administrator of the Federal Aviation 
        Administration (hereafter in this section referred to as the 
        `Administrator'), shall promulgate regulations that require a 
        recipient of a project grant (or any other recipient of Federal 
        financial assistance that is provided for an airport) to 
        include as part of an annual audit conducted under sections 
        7501 through 7505 of title 31, a review and opinion of the 
        review concerning the funding activities with respect to an 
        airport that is the subject of the project grant (or other 
        Federal financial assistance) and the sponsors (or other 
        recipients) involved.
            ``(2) Content of review.--A review conducted under 
        paragraph (1) shall provide reasonable assurances that funds 
        paid or transferred to sponsors are paid or transferred in a 
        manner consistent with the applicable requirements of this 
        chapter and any other applicable provision of law (including 
        regulations promulgated by the Secretary or the Administrator).
            ``(3) Requirements for audit report.--The report submitted 
        to the Secretary under this subsection shall include a specific 
        determination and opinion regarding the appropriateness of the 
        disposition of airport funds paid or transferred to a sponsor.
            ``(4) Certification by inspector general.--Upon completion 
        of each audit and review conducted under this subsection, the 
        Inspector General of the Department of Transportation shall, 
        upon making a determination that the audit and review meet the 
        requirements of this section, certify that the audit and review 
        meet those requirements.
    ``(n) Recovery of Illegally Diverted Funds.--
            ``(1) In general.--Not later than 180 days after the 
        issuance of an audit or any other report that identifies an 
        illegal diversion of airport revenues (as determined under 
        subsections (b) and (l) and section 47133), the Secretary, 
        acting through the Administrator, shall--
                    ``(A) review the audit or report;
                    ``(B) perform appropriate factfinding; and
                    ``(C) render a final determination concerning 
                whether the illegal diversion of airport revenues 
                asserted in the audit or report occurred.
            ``(2) Notification.--Upon making such a finding, the 
        Secretary, acting through the Administrator, shall provide 
        written notification to the sponsor and the airport of--
                    ``(A) the finding; and
                    ``(B) the obligations of the sponsor to reimburse 
                the airport involved under this paragraph.
            ``(3) Administrative action.--If a sponsor receives 
        notification that the sponsor is required to reimburse an 
        airport, the Secretary, acting through the Administrator, 
        shall--
                    ``(A) assess an administrative penalty against the 
                sponsor in an amount equal to--
                            ``(i) the amount of the illegal diversion 
                        in question;
                            ``(ii) interest (as determined under 
                        subsection (o)); and
                            ``(iii) at the discretion of the Secretary, 
                        acting through the Administrator, in accordance 
                        with procedures established under subsection 
                        (q), an amount to make a payment to a 
                        petitioner under subsection (q)(4); or
                    ``(B) notwithstanding any other provision of law, 
                withhold an amount calculated in the same manner as 
                provided under subparagraph (A) from funds that would 
                otherwise be made available to the sponsor as part of 
                an apportionment under sections 47114 or a grant made 
                from amounts apportioned under section 47114 pursuant 
                to section 47117.
        Any withholding made under subparagraph (B) shall not be 
        subject to section 47106(d) or 47111(d), or the hearing 
        requirement under section 47111(e).
            ``(4) Civil action.--
                    ``(A) In general.--If a sponsor fails to pay the 
                amount specified in paragraph (3) during the 180-day 
                period beginning on the date of notification and the 
                Secretary or the Administrator is unable to withhold a 
                sufficient amount under paragraph (3)(B), the 
                Secretary, acting through the Administrator, shall 
                initiate a civil action under which the sponsor shall 
                be liable for civil penalty in an amount equal to the 
                illegal diversion in question plus interest (as 
                determined under subsection (o)).
                    ``(B) Additional amount.--In addition to the amount 
                determined under subparagraph (A), if applicable, the 
                civil penalty may include an amount that the court 
                shall cause to be transferred to a petitioner under 
                subsection (q)(4).
            ``(5) Disposition of penalties.--
                    ``(A) Administrative penalties.--The Secretary or 
                the Administrator shall transfer any amounts collected 
                as an administrative penalty under paragraph (3)(A) to 
                the Airport and Airway Trust Fund established under 
                section 9502(d) of the Internal Revenue Code of 1986.
                    ``(B) Amounts withheld.--The Secretary or the 
                Administrator shall transfer any amounts withheld under 
                paragraph (3)(B) to the Airport and Airway Trust Fund.
                    ``(C) Civil penalties.--With respect to any amount 
                collected by a court in a civil action under paragraph 
                (4), the court shall cause to be transferred to the 
                Airport and Airway Trust Fund any amount collected as a 
                civil penalty under paragraph (4).
            ``(6) Reimbursement.--The Secretary, acting through the 
        Administrator, shall, as soon as practicable after any amount 
        is collected from a sponsor under paragraph (3) or (4), cause 
        to be transferred from the Airport and Airway Trust Fund to an 
        airport affected by a diversion that is the subject of an 
        administrative action under paragraph (3) or a civil action 
        under paragraph (4), reimbursement in an amount equal to the 
        amount that has been collected from the sponsor under paragraph 
        (3) or (4) (including any amount of interest calculated under 
        subsection (o)), other than any amount that has been collected 
        under paragraph (3) or (4) for a payment to a petitioner under 
        subsection (q)(4).
            ``(7) Statute of limitations.--No person may bring an 
        action for the recovery of funds illegally diverted in 
        violation of this section (as determined under subsections (b) 
        and (l)) or section 47133 after the date that is 6 years after 
        the date on which the diversion occurred.
    ``(o) Interest.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary, acting through the Administrator, shall charge a 
        minimum annual rate of interest on the amount of any illegal 
        diversion of revenues referred to in subsection (n) in an 
        amount equal to the average investment interest rate for tax 
        and loan accounts of the Department of the Treasury (as 
        determined by the Secretary of the Treasury) for the applicable 
        calendar year, rounded to the nearest whole percentage point.
            ``(2) Adjustment of interest rates.--If, with respect to a 
        calendar quarter, the average investment interest rate for tax 
        and loan accounts of the Department of the Treasury exceeds the 
        average investment interest rate for the immediately preceding 
        calendar quarter, rounded to the nearest whole percentage 
        point, the Secretary of the Treasury may adjust the interest 
        rate charged under this subsection in a manner that reflects 
        that change.
            ``(3) Accrual.--Interest assessed under subsection (n) 
        shall accrue from the date of the actual illegal diversion of 
        revenues referred to in subsection (n).
            ``(4) Determination of applicable rate.--The applicable 
        rate of interest charged under paragraph (1) shall--
                    ``(A) be the rate in effect on the date on which 
                interest begins to accrue under paragraph (3); and
                    ``(B) remain at a rate fixed under subparagraph (A) 
                during the duration of the indebtedness.
    ``(p) Payment by Airport to Sponsor.--If, in the course of an audit 
or other review conducted under this section, the Secretary determines 
that an airport owes a sponsor funds as a result of activities 
conducted by the sponsor or expenditures by the sponsor for the benefit 
of the airport, interest on that amount shall be determined in the same 
manner as provided in paragraphs (1) through (4) of subsection (o), 
except that the amount of any interest assessed under this subsection 
shall be determined from the date on which the Secretary or the 
Administrator makes that determination.''.
    (b) Revision of Policies and Procedures; Deadlines.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary, acting through the 
        Administrator, shall revise the policies and procedures 
        established under section 47107(l) of title 49, United States 
        Code, to take into account the amendments made to that section 
        by this title.
            (2) Deadlines.--Section 47107(l) of title 49, United States 
        Code, is amended by adding at the end the following new 
        paragraph:
            ``(5) Deadlines.--In addition to the statute of limitations 
        specified in subsection (n)(7), the following statutes of 
        limitations and deadlines shall apply with respect to project 
        grants made under this chapter:
                    ``(A) Any request to any airport for additional 
                payments for services conducted off of the airport 
                shall be filed not later than 6 years after the date on 
                which the expense is incurred.
                    ``(B) Any amount of airport funds that are used to 
                make a payment as described in subparagraph (A) after 
                the date specified in that subparagraph shall be 
                considered to be an illegal diversion of airport 
                revenues that is subject to subsection (n).''.

SEC. 206. ELIMINATION OF CERTAIN EXCEPTIONS.

    (a) In General.--Section 47107(b)(2) of title 49, United States 
Code, is amended--
            (1) by inserting ``(A)'' before ``Notwithstanding 
        subsection (b)(1)''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) This paragraph shall have no force and effect beginning on 
the earlier of--
            ``(i) the date on which all debt obligations covered under 
        this paragraph on the day before the date of enactment of the 
        Airport Revenue Protection Act of 1996 are either retired or 
        refinanced; or
            ``(ii) the date that is 10 years after the date of 
        enactment of the Airport Revenue Protection Act of 1996.''.
    (b) Hawaii.--Section 47107(j) of title 49, United States Code, is 
amended by adding at the end the following new paragraph:
    ``(8) This subsection shall have no force and effect beginning on 
the earlier of--
            ``(A) the date on which all debt obligations referred to in 
        paragraph (2) that are covered under this subsection are either 
        retired or refinanced; or
            ``(B) the date that is 10 years after the date of enactment 
        of the Airport Revenue Protection Act of 1996.''.

SEC. 207. WHISTLEBLOWER PROTECTION AND PAYMENTS.

    Section 47107 of title 49, United States Code, as amended by 
section 205 of this title, is further amended by adding at the end the 
following new subsection:
    ``(q) Whistleblower Protection and Payments.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of the Airport Revenue Protection Act of 1996, the 
        Secretary, acting through the Administrator, shall establish a 
        process under which a private citizen or other party (other 
        than an employee of the Department of Transportation and the 
        organization or entity that conducts an audit under subsection 
        (m)) may petition the Secretary or the Administrator for review 
        of an allegation of illegal diversion of airport revenues.
            ``(2) Evaluation.--Not later than 30 days after the date on 
        which a petition is made under paragraph (1), the Secretary, 
        acting through the Administrator--
                    ``(A) shall evaluate the petition if it asserts 
                that an illegal diversion of airport revenues (as 
                determined under subsections (b) and (l) and section 
                47133) has occurred in an amount greater than or equal 
                to $10,000 for a calendar year period; and
                    ``(B) may evaluate the petition if it asserts an 
                illegal diversion of airport revenues in an amount less 
                than the amount specified in subparagraph (A).
            ``(3) Action by the secretary of transportation.--If the 
        Secretary, acting through the Administrator, reviews a petition 
        described under paragraph (1) and determines that an illegal 
        diversion of revenues (as determined under subsections (b) and 
        (l) and section 47133) has occurred, the Secretary, acting 
        through the Administrator, shall take such action, in 
        accordance with this section, as is necessary to--
                    ``(A) recover the illegally diverted revenues; and
                    ``(B) provide for reimbursement to the airport of 
                the amount illegally diverted.
            ``(4) Payment to petitioner.--Notwithstanding any other 
        provision of law, in any case in which the Secretary or the 
        Administrator recovers funds under paragraph (3), the Secretary 
        or the Administrator shall take such action as may be necessary 
        (including requiring the sponsor to make a payment for the 
        petitioner and transferring funds from the Airport and Airway 
        Trust Fund established under section 9502(d) of the Internal 
        Revenue Code of 1986), to make a payment to the petitioner, in 
        accordance with procedures that the Secretary, acting through 
        the Administrator, shall establish by regulation (after 
        providing opportunity for notice and public comment).
            ``(5) Prohibition on disclosure.--Neither the Secretary nor 
        the Administrator may disclose to an airport, a sponsor, or the 
        general public the identity of a petitioner under this 
        subsection without the consent of the petitioner.''.

SEC. 208. QUI TAM ACTIONS.

    Section 47107 of title 49, United States Code, as amended by 
section 206 of this title, is further amended by adding at the end the 
following new subsection:
    ``(r) Qui Tam Actions.--Notwithstanding any other provision of law, 
a private citizen may bring a civil action for a violation of this 
section in the same manner as is provided for a civil action for a 
violation of section 3729 of title 31 under section 3730 of that 
title.''.

SEC. 209. CONFORMING AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.

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

    TITLE III--AIR TRAFFIC MANAGEMENT SYSTEM PERFORMANCE IMPROVEMENT

                       PART I--GENERAL PROVISIONS

SEC. 301. SHORT TITLE.

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

SEC. 302. 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 of 
        the Treasury (hereafter in this subsection referred to as 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 the 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 
        moneys collected from them each year and deposited into the 
        Airport and Airway Trust Fund. Existing surpluses representing 
        past receipts must also be spent for the purposes for which 
        such funds were collected.
            (6) The aviation community and the employees of the 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 
        must continue 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 those 
        segments require and benefits which they receive, the Congress 
        should appropriate the difference between such costs and any 
        receipts received from such segments.
            (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--
                    (A) has the ability to keep pace with new 
                technology; and
                    (B) 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--
                    (A) the Federal Aviation Administration will 
                continue to experience delays and cost overruns in its 
                major modernization programs; and
                    (B) 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. 303. PURPOSES.

    The purposes of this title 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 
        traveling public.

SEC. 304. EFFECTIVE DATE.

    Except as otherwise provided in this title, the provisions of this 
title and the amendments made by this title shall take effect on the 
date that is 30 days after the date of the enactment of this Act.

SEC. 305. 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 title or 
the amendments made by this title limits any authority granted to the 
Administrator by statute or by delegation that was in effect on the day 
before the date of enactment of this Act.

SEC. 306. REGULATIONS.

    Section 106(f) of title 49, United States Code, as amended by 
section 305 of this title, 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 $100,000,000 or more or 
                                adversely affect in a material way the 
                                economy, a sector of the economy, 
                                productivity, competition, jobs, the 
                                environment, public health or safety, 
                                or State, local, or tribal governments 
                                or communities;
                                    ``(II) create a serious 
                                inconsistency or otherwise interfere 
                                with an action taken or planned by 
                                another agency;
                                    ``(III) materially alter the 
                                budgetary impact of entitlements, 
                                grants, user fees, or loan programs or 
                                the rights and obligations of 
                                recipients thereof; or
                                    ``(IV) raise novel legal or policy 
                                issues arising out of legal mandates.
                            ``(ii) In an emergency, the Administrator 
                        may issue a regulation described in clause (i) 
                        without prior approval by the Secretary, but 
                        any such emergency regulation is subject to 
                        ratification by the Secretary after it is 
                        issued and shall be rescinded by the 
                        Administrator within 5 days (excluding 
                        Saturdays, Sundays, and legal public holidays) 
                        after issuance if the Secretary fails to ratify 
                        its issuance.
                            ``(iii) Any regulation that does not meet 
                        the criteria of clause (i), and any regulation 
                        or other action that is a routine or frequent 
                        action or a procedural action, may be issued by 
                        the Administrator without review or approval by 
                        the Secretary.
                            ``(iv) The Administrator shall submit a 
                        copy of any regulation requiring approval by 
                        the Secretary under clause (i) to the 
                        Secretary, who shall either approve it 
or return it to the Administrator with comments within 45 days after 
receiving it.
                    ``(C) Periodic review.--(i) Beginning on the date 
                which is 3 years after the date of 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. 307. 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. 308. CONTRACTS.

    Section 106(l) of title 49, United States Code, as added by section 
307 of this title, 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. 309. 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 does not adopt a 
                recommendation made by the Secretary under subsection 
                (b), a description of the recommendation and the 
                reasons for not adopting the recommendation.
    ``(d) Cost Reduction and Efficiency Report Required.--Whenever the 
Administrator submits a report, request, or proposal that contains an 
increase in either the budget of the Administration or any of the fees 
imposed by the Administration, the Administrator shall submit, as a 
part of that report, request, or proposal--
            ``(1) an explanation that states specifically the need for 
        the increase; and
            ``(2) a statement of any steps taken by the Administration 
        to reduce costs and improve efficiency in order to avoid or 
        limit the increase.''.
    (b) Conforming Amendment.--The analysis for chapter 481 of such 
title is amended by striking the item relating to section 48109 and 
inserting the following:

``48109. Budget information and legislative recommendations and 
                            comments.''.

SEC. 310. FACILITIES.

    Section 106 of title 49, United States Code, as amended by section 
307 of this title, 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. 311. PROPERTY.

    Section 106 of title 49, United States Code, as amended by section 
310 of this title, 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. 312. 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 335 of this title.
    (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. 313. TRANSFERS OF FUNDS FROM OTHER FEDERAL AGENCIES.

    Section 106 of title 49, United States Code, as amended by section 
311 of this title, 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. 314. MANAGEMENT ADVISORY COUNCIL.

    Section 106 of title 49, United States Code, as amended by section 
313 of this title, 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. 315. 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, cause, or 
        contribute to, air pollution which may reasonably be 
        anticipated to endanger public health or welfare.''.

SEC. 316. 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.

     PART II--FEDERAL AVIATION ADMINISTRATION STREAMLINING PROGRAMS

SEC. 321. INNOVATIVE PROGRAM FOR AIR TRAFFIC CONTROL MODERNIZATION.

    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. 322. AIR TRAFFIC CONTROL MODERNIZATION REVIEWS.

    Chapter 401 of title 49, United States Code, as amended by section 
321, 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. 323. INNOVATIVE PROGRAM FOR FEDERAL AVIATION ADMINISTRATION 
              SERVICES.

    Chapter 401 of title 49, United States Code, as amended by section 
322, 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. 324. 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.''.

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

SEC. 331. 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 (including 
        mechanics).
            (9) The Administration's certification means that the 
        product meets world-wide recognized standards of safety and 
        reliability.
            (10) The Administration's certification means aviation-
        related equipment and services meet world-wide recognized 
        standards.
            (11) The Administration's certification is recognized by 
        governments and businesses throughout the world and as such 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 of the Treasury 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. 332. PURPOSES.

    The purposes of this part 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. 333. 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.--Not later than 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. 334. USER FEES FOR AIR TRAFFIC CONTROL SERVICES.

    (a) In General.--Chapter 453 of title 49, United States Code, as 
amended by section 333 of this title, 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. 335. ADMINISTRATIVE PROVISIONS.

    (a) In General.--Chapter 453 of title 49, United States Code, as 
amended by section 334 of this title, 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 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.--Not later than 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) Fees 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. 336. 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. 337. 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 1998, 
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 1998, 
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          48201.''.
trust facilities.

SEC. 338. 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 
        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 in the Trust Fund.
            (3) In conjunction with any fee systems developed pursuant 
        to this title and the amendments made by this title, the 
        Congress must make every effort to apply the unobligated 
        surplus for use by the Administration.

SEC. 339. 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.

                        TITLE IV--PILOT RECORDS

SEC. 401. SHORT TITLE.

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

SEC. 402. EMPLOYMENT INVESTIGATIONS OF PILOT APPLICANTS.

    (a) In General.--Section 44936 of title 49, United States Code, is 
amended by adding at the end the following new subsection:
    ``(f) Records of Employment of Pilot Applicants.--
            ``(1) In general.--Before hiring an individual as a pilot, 
        an air carrier shall request and receive the following 
        information:
                    ``(A) FAA records.--From the Administrator of the 
                Federal Aviation Administration (hereafter in this 
                subsection referred to as the `Administrator'), records 
                pertaining to the individual that are maintained by the 
                Administrator concerning--
                            ``(i) current airman certificates 
                        (including airman medical certificates) and 
                        associated type ratings, including any 
                        limitations to those certificates and ratings; 
                        and
                            ``(ii) summaries of legal enforcement 
                        actions resulting in a finding by the 
                        Administrator of a violation of this title or a 
                        regulation prescribed or order issued under 
                        this title.
                    ``(B) Air carrier and other records.--From any air 
                carrier or other person that has employed the 
                individual at any time during the 5-year period 
                preceding the date of the employment application of the 
                individual, or from the trustee in bankruptcy for such 
                air carrier or person--
                            ``(i) records pertaining to the individual 
                        that are maintained by an air carrier under 
                        regulations set forth in--
                                    ``(I) section 121.683 of title 14, 
                                Code of Federal Regulations;
                                    ``(II) paragraph (A) of section VI, 
                                appendix I, part 121 of such title;
                                    ``(III) paragraph (A) of section 
                                IV, appendix J, part 121 of such title;
                                    ``(IV) section 125.401 of such 
                                title; and
                                    ``(V) section 135.63(a)(4) of such 
                                title; and
                            ``(ii) other records pertaining to the 
                        individual that are maintained by the air 
                        carrier or person concerning--
                                    ``(I) the training, qualifications, 
                                proficiency, or professional competence 
                                of the individual, including comments 
                                and evaluations made by a check airman 
                                designated in accordance with section 
                                121.411, 125.295, or 135.337 of such 
                                title;
                                    ``(II) any disciplinary action 
                                taken with respect to the individual; 
                                and
                                    ``(III) any release from employment 
                                or resignation, termination, or 
                                disqualification with respect to 
                                employment.
                    ``(C) Periodic review.--Not later than 18 months 
                after the date of enactment of the Pilot Records 
                Improvement Act of 1996, and at least once every 3 
                years thereafter, the Administrator shall transmit to 
                the Congress a statement that contains, taking into 
                account recent developments in the aviation industry--
                            ``(i) recommendations by the Administrator 
                        concerning proposed changes to Federal Aviation 
                        Administration records, air carrier records, 
                        and other records required to be furnished 
                        under subparagraphs (A) and (B) of paragraph 
                        (1); or
                            ``(ii) reasons why the Administrator does 
                        not recommend any proposed changes to the 
                        records referred to in clause (i).
                    ``(D) National driver register records.--In 
                accordance with section 30305(b)(7), from the chief 
                driver licensing official of a State information 
                concerning the motor vehicle driving record of the 
                individual.
            ``(2) Written consent; release from liability.--An air 
        carrier making a request for records under paragraph (1)--
                    ``(A) shall be required to obtain written consent 
                to the release of those records from the individual 
                that is the subject of the records requested; and
                    ``(B) may, notwithstanding any other provision of 
                law or agreement to the contrary, require the 
                individual who is the subject of the records request to 
                execute a release from liability for any claim arising 
                from the furnishing of such records to or the use of 
                such records by such air carrier.
            ``(3) 5-year reporting period.--A person shall not furnish 
        a record in response to a request made under paragraph (1) if 
        the record was entered more than 5 years before the date of the 
        request, unless the information concerns a revocation or 
        suspension of an airman certificate or motor vehicle license 
        that is in effect on the date of the request.
            ``(4) Requirement to maintain records.--The Administrator 
        shall maintain pilot records described in paragraph (1)(A) for 
        a period of at least 5 years.
            ``(5) Receipt of consent; provision of information.--A 
        person shall not furnish a record in response to a request made 
        under paragraph (1) without first obtaining a copy of the 
        written consent of the individual who is the subject of the 
        records requested. A person who receives a request for records 
        under this paragraph shall furnish a copy of all of such 
        requested records maintained by the person not later than 30 
        days after receiving the request.
            ``(6) Right to receive notice and copy of any record 
        furnished.--A person who receives a request for records under 
        paragraph (1) shall provide to the individual who is the 
        subject of the records--
                    ``(A) written notice of the request and of the 
                right of that individual to receive a copy of such 
                records; and
                    ``(B) a copy of such records, if requested by the 
                individual.
            ``(7) Reasonable charges for processing requests and 
        furnishing copies.--A person who receives a request under 
        paragraph (1) or (6) may establish a reasonable charge for the 
        cost of processing the request and furnishing copies of the 
        requested records.
            ``(8) Standard forms.--The Administrator shall promulgate--
                    ``(A) standard forms that may be used by an air 
                carrier to request records under paragraph (1); and
                    ``(B) standard forms that may be used by an air 
                carrier to--
                            ``(i) obtain the written consent and 
                        release from liability of the individual who is 
                        the subject of a request under paragraph (1); 
                        and
                            ``(ii) inform the individual of--
                                    ``(I) the request; and
                                    ``(II) the individual right of that 
                                individual to receive a copy of any 
                                records furnished in response to the 
                                request.
            ``(9) Right to correct inaccuracies.--An air carrier that 
        requests and receives the records of an individual under 
        paragraph (1) shall provide the individual with a reasonable 
        opportunity to submit written comments to correct any 
        inaccuracies contained in the records before making a final 
        hiring decision with respect to the individual.
            ``(10)  Right of pilot to review certain records.--
        Notwithstanding any other provision of law or agreement, an air 
        carrier shall, upon written request from a pilot employed by 
        such carrier, make available, within a reasonable time of the 
        request, to the pilot for review any and all employment records 
        referred to in paragraph (1)(B)(i) pertaining to the employment 
        of the pilot.
            ``(11) Privacy protections.--An air carrier that receives 
        the records of an individual under paragraph (1) may use such 
        records only to assess the qualifications of the individual in 
        deciding whether or not to hire the individual as a pilot. The 
        air carrier shall take such actions as may be necessary to 
        protect the privacy of the pilot and the confidentiality of the 
        records, including ensuring that information contained in the 
        records is not divulged to any individual that is not directly 
        involved in the hiring decision.
            ``(12) Regulations.--The Administrator may prescribe such 
        regulations as may be necessary--
                    ``(A) to protect--
                            ``(i) the personal privacy of any 
                        individual whose records are requested under 
                        paragraph (1); and
                            ``(ii) the confidentiality of those 
                        records;
                    ``(B) to limit the further dissemination of records 
                received under paragraph (1) by the person who 
                requested those records; and
                    ``(C) to ensure prompt compliance with any request 
                made under paragraph (1).
    ``(g) Limitation on Liability; Preemption of State Law.--
            ``(1) Limitation on liability.--No action or proceeding may 
        be brought by or on behalf of an individual who has applied for 
        or is seeking a position with an air carrier as a pilot and who 
        has signed a release from liability, as provided for under 
        paragraph (2), against--
                    ``(A) the air carrier requesting the records of 
                that individual under subsection (a)(1);
                    ``(B) a person who has complied with such request; 
                or
                    ``(C) an agent or employee of a person described in 
                subparagraph (A) or (B);
        in the nature of an action for defamation, invasion of privacy, 
        negligence, interference with contract, or otherwise, or under 
        any State or Federal law with respect to the furnishing or use 
        of such records in accordance with subsection (a).
            ``(2) Preemption.--No State or political subdivision 
        thereof may enact, prescribe, issue, continue in effect, or 
        enforce any law (including any regulation, standard, or other 
        provision having the force and effect of law) that prohibits, 
        penalizes, or imposes liability for furnishing or using records 
        in accordance with subsection (a).
            ``(3) Provision of knowingly false information.--Paragraphs 
        (1) and (2) shall not apply with respect to a person who 
        furnishes information, in response to a request made under 
        subsection (a)(1), that--
                    ``(A) the person knows is false; and
                    ``(B) was maintained in violation of a criminal 
                statute of the United States.''.
    (b) Conforming Amendment.--Section 30305(b) of such title is 
amended--
            (1) by redesignating paragraph (7) as paragraph (8); and
            (2) by inserting after paragraph (6) the following:
            ``(7) An individual who is seeking employment by an air 
        carrier as a pilot may request the chief driver licensing 
        official of a State to provide information about the individual 
        under paragraph (2) to the prospective employer of the 
        individual or to the Secretary of Transportation. Information 
        may not be obtained from the National Driver Register under 
        this subsection if the information was entered in the Register 
        more than 5 years before the request unless the information is 
about a revocation or suspension still in effect on the date of the 
request.''.
    (c) Applicability.--The amendments made by this section shall apply 
to any air carrier hiring an individual as a pilot on or after the 30th 
day after the date of enactment of this Act.

SEC. 403. STUDY OF MINIMUM STANDARDS FOR PILOT QUALIFICATIONS.

    The Administrator shall, in consultation with, appropriate members 
of the aviation industry conduct a study directed toward development 
of--
            (1) standards and criteria for preemployment screening 
        tests measuring the psychomotor coordination, general 
        intellectual capacity, instrument and mechanical comprehension, 
        and physical and mental fitness of an applicant for employment 
        as a pilot by an air carrier; and
            (2) standards and criteria for pilot training facilities to 
        be licensed by the Administrator and which will assure that 
        pilots trained at such facilities meet the preemployment 
        screening standards and criteria described in paragraph (1).

      TITLE V--ABOLITION OF BOARD OF REVIEW AND RELATED AUTHORITY

SEC. 501. ABOLITION OF BOARD OF REVIEW AND RELATED AUTHORITY.

    (a) Abolition of Board of Review.--Section 6007 of the Metropolitan 
Washington Airports Act of 1986 (formerly 49 U.S.C. App. 2456) is 
amended--
            (1) by striking subsections (f) and (h);
            (2) by redesignating subsection (g) as subsection (f); and
            (3) by redesignating subsection (i) as subsection (g).
    (b) Conforming Amendments.--
            (1) Relationship to and effect of other laws.--Section 
        6009(b) of the Metropolitan Washington Airports Act of 1986 
        (formerly 49 U.S.C. App. 2458(b)) is amended by striking ``or 
        by reason of the authority'' and all that follows through the 
        end of the subsection and inserting a period.
            (2) Separability.--Section 6011 of the Metropolitan 
        Washington Airports Act of 1986 (formerly 49 U.S.C. App. 2460) 
        is amended by striking ``Except as provided in section 6007(h), 
        if'' and inserting ``If''.
    (c) Protection of Certain Actions.--Any action taken by the 
Airports Authority and submitted to the Board of Review pursuant to 
section 6007(f)(4) of the Metropolitan Washington Airports Act of 1986 
before April 1, 1995, shall remain in effect and shall not be set aside 
solely by reason of a judicial order invalidating certain functions of 
the Board of Review.

SEC. 502. SENSE OF THE SENATE.

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

SEC. 503. CONFORMING AMENDMENTS IN OTHER LAW.

    Any reference in any Federal law, Executive order, rule, 
regulation, or delegation of authority to the Board of Review or the 
provisions of law repealed under this title is hereby repealed.

SEC. 504. DEFINITIONS.

    For purposes of this title--
            (1) the terms ``Airports Authority'', ``Washington National 
        Airport'', and ``Washington Dulles International Airport'' have 
        the same meanings as in section 6004 of the Metropolitan 
        Washington Airports Act of 1986; and
            (2) the term ``Board of Review'' means the Board of Review 
        of the Airports Authority.

SEC. 505. INCREASE IN NUMBER OF PRESIDENTIALLY-APPOINTED MEMBERS OF 
              BOARD.

    (a) In General.--Section 6007(e) of the Metropolitan Washington 
Airports Act of 1986 (formerly 49 U.S.C. App. 2456(e)) is amended--
            (1) by striking ``11 members,'' in paragraph (1) and 
        inserting ``13 members'';
            (2) by striking ``one member'' in paragraph (1)(D) and 
        inserting ``3 members''; and
            (3) by striking ``Seven'' in paragraph (5) and inserting 
        ``Eight''.
    (b) Staggering Terms for Presidential Appointees.--Of the members 
first appointed by the President after the date of enactment of this 
title--
            (1) one shall be appointed for a term that expires 
        simultaneously with the term of the member of the Metropolitan 
        Washington Airports Authority board of directors serving on 
        that date (or, if there is a vacancy in that office, the member 
        appointed to fill the existing vacancy and the member to whom 
        this paragraph applies shall be appointed for 2 years);
            (2) one shall be appointed for a term ending 2 years after 
        the term of the member (or members) to whom paragraph (1) 
        applies expires; and
            (3) one shall be appointed for a term ending 4 years after 
        the term of the member (or members) to whom paragraph (1) 
        applies expires.

SEC. 506. RECONSTITUTED BOARD TO FUNCTION WITHOUT INTERRUPTION.

    Notwithstanding any provision of State law, including those 
provisions establishing, providing for the establishment of, or 
recognizing the Metropolitan Washington Airports Authority, and based 
upon the Federal interest in the continued functioning of the 
Metropolitan Washington Airports (as defined in section 6004(4) of the 
Metropolitan Washington Airports Authority Act of 1986 (formerly 49 
U.S.C. App. 2451(4)), the board of directors of such Authority, 
including any members appointed under the amendments made by section 5, 
shall continue to meet and act after the date of enactment of this 
title until such time as any necessary conforming changes in State law 
are made in the same manner as if those conforming changes had been 
enacted on the date of enactment of this title.

SEC. 507. STATUS UNAFFECTED.

    Nothing in this title, or the amendments made by this title, shall 
affect the treatment of the Metropolitan Washington Airports Authority 
under Federal, State, or local tax law.

SEC. 508. OPERATIONAL SLOTS AT NATIONAL AIRPORT.

    Nothing in this title shall affect the number or distribution of 
operational slots at National Airport.

           TITLE VI--FEDERAL AVIATION ADMINISTRATION FUNDING

SEC. 601. SENSE OF THE SENATE REGARDING THE FUNDING OF THE FEDERAL 
              AVIATION ADMINISTRATION.

    (a) Findings.--The Senate finds that--
            (1) the Congress is responsible for ensuring that the 
        financial needs of the Federal Aviation Administration, the 
        agency that performs the critical function of overseeing the 
        Nation's air traffic control system and ensuring the safety of 
        air travelers in the United States, are met;
            (2) the number of air traffic control equipment and power 
        failures is increasing, which could place at risk the 
        reliability of our Nation's air traffic control system;
            (3) aviation excise taxes that constitute the Airport and 
        Airway Trust Fund, which provides most of the funding for the 
        Federal Aviation Administration, have expired;
            (4) the funds in the Airport and Airway Trust Fund will be 
        spent by the Federal Aviation Administration by December 1996;
            (5) the 4.3 cent increase in the aviation fuel tax rate 
        which was enacted in 1993 and does not directly support the 
        Federal Aviation Administration's activities has placed a 
        significant financial burden on the aviation industry and 
        should be repealed;
            (6) the existing system of funding the Federal Aviation 
        Administration will not provide the agency with sufficient 
        short-term or long-term funding;
            (7) this Act creates a sound process to establish a new 
        funding system to meet the Federal Aviation Administration's 
        long-term funding needs; and
            (8) without immediate action by the Congress to ensure that 
        the Federal Aviation Administration's financial needs are met, 
        air travelers' confidence in the system could be undermined.
    (b) Sense of the Senate.--It is the sense of the Senate that there 
should be an immediate enactment of an interim measure to provide 
short-term funding for the Federal Aviation Administration until the 
new funding system established in this Act for the Federal Aviation 
Administration is implemented.
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