[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1994 Reported in Senate (RS)]





                                                       Calendar No. 539

104th CONGRESS

  2d Session

                                S. 1994

                          [Report No. 104-333]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                             July 26, 1996

                 Read twice and placed on the calendar
                                                       Calendar No. 539
104th CONGRESS
  2d Session
                                S. 1994

                          [Report No. 104-333]

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 26, 1996

      Mr. Pressler, from the Committee on Commerce, Science, and 
 Transportation, reported the following original bill; which was read 
                    twice and placed on the calendar

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal Aviation 
Reauthorization Act of 1996''.
    (b) Table of Contents.--

Section 1. Short Title; Table of Contents.
Sec. 2. Amendments to Title 49, United States Code.
                              TITLE I--REAUTHORIZATION OF FAA PROGRAMS
Sec. 101. Federal Aviation Administration Operations.
Sec. 102. Air Navigation Facilities.
Sec. 103. Research and development.
Sec. 104. Airport Improvement Program.
Sec. 105. Interaccount flexibility.
                              TITLE II--AIRPORT IMPROVEMENT PROGRAM 
                                        MODIFICATIONS
Sec. 201. Pavement maintenance program.
Sec. 202. Maximum percentages of amount made available for grants to 
                            certain primary airports.
Sec. 203. Discretionary fund.
Sec. 204. Designating current and former military airports.
Sec. 205. State block grant program.
Sec. 206. Access to airports by intercity buses.
                              TITLE III--EXTENSION OF AIRPORT AND 
                                        AIRWAY TRUST FUND EXPENDITURE 
                                        AUTHORITY
Sec. 301. Expenditures from Airport and Airway Trust Fund.
                              TITLE IV--MISCELLANEOUS PROVISIONS
Sec. 401. Acquisition of housing units.
Sec. 402. Technical correction of title 49 codification.
Sec. 403. Protection of voluntary submission of information.
Sec. 404. Discretionary authority for criminal history records checks.
Sec. 405. Application of FAA regulations.
Sec. 406. Sense of the Senate regarding the funding of the Federal 
                            Aviation Administration.
Sec. 407. Authorization for State-specific safety measures.
Sec. 408. Sense of the Senate regarding the air ambulance exemption 
                            from certain Federal excise taxes.
Sec. 409. FAA safety mission.
                              TITLE V--COMMERCIAL SPACE TRANSPORTATION
Sec. 501. Commercial space launch amendments.
                              TITLE VI--AIR TRAFFIC MANAGEMENT SYSTEM 
                                        PERFORMANCE IMPROVEMENT ACT
Sec. 601. Short title.
Sec. 602. Definitions.
Sec. 603. Effective date.
                              SUBTITLE A--GENERAL PROVISIONS
Sec. 621. Findings.
Sec. 622. Purposes.
Sec. 623. Regulation of civilian air transportation and related 
                            services by the Federal Aviation 
                            Administration and Department of 
                            Transportation.
Sec. 624. Regulations.
Sec. 625. Personnel and services.
Sec. 626. Contracts.
Sec. 627. Facilities.
Sec. 628. Property.
Sec. 629. Transfers of funds from other federal agencies.
Sec. 630. Management Advisory Council.
Sec. 631. Aircraft engine standards.
Sec. 632. Rural air fare study.
                              SUBTITLE B--FEDERAL AVIATION 
                                        ADMINISTRATION STREAMLINING 
                                        PROGRAMS
Sec. 651. Review of acquisition management system.
Sec. 652. Air traffic control modernization reviews.
Sec. 653. Federal Aviation Administration personnel management system.
Sec. 654. Conforming amendment.
                              SUBTITLE C--SYSTEM TO FUND CERTAIN 
                                        FEDERAL AVIATION ADMINISTRATION 
                                        FUNCTIONS
Sec. 671. Findings.
Sec. 672. Purposes.
Sec. 673. User fees for various Federal Aviation Administration 
                            services.
Sec. 674. Independent assessment and task force to review existing and 
                            innovative funding mechanisms.
Sec. 675. Procedure for consideration of certain funding proposals.
Sec. 676. Administrative provisions.
Sec. 677. Advance appropriations for Airport and Airway Trust Fund 
                            activities.
Sec. 678. Rural Air Service Survival Act.
                              TITLE VII--PILOT RECORDS
Sec. 701. Short title.
Sec. 702. Employment investigations of pilot applicants.
Sec. 703. Study of minimum standards for pilot qualifications.

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

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

                TITLE I--REAUTHORIZATION OF FAA PROGRAMS

SEC. 101. FEDERAL AVIATION ADMINISTRATION OPERATIONS.

    (a) Authorization of Appropriations From General Fund.--Section 
106(k) is amended--
            (1) by striking ``and'' after ``1995,''; and
            (2) by inserting before the period at the end the 
        following: ``, and $5,000,000,000 for fiscal year 1997.''.
    (b) Authorization of Appropriations From Trust Fund.--Section 
48104(b) is amended--
            (1) in the subsection heading by striking ``FOR FISCAL 
        YEARS 1993''; and
            (2) by striking the phrase ``for fiscal year 1993''.
    (c) Clerical Amendment.--Section 48108 is amended by striking 
subsection (c).

SEC. 102. AIR NAVIGATION FACILITIES.

    Section 48101(a) is amended by adding at the end the following:
            ``(5) For the fiscal years ending September 30, 1991-1997, 
        $17,929,000,000.''.

SEC. 103. RESEARCH AND DEVELOPMENT.

    Section 48102(a) is amended by striking ``title:'' and all that 
follows through the end of the subsection, and inserting the following: 
``title, $200,000,000 for fiscal year 1997.''.

SEC. 104. AIRPORT IMPROVEMENT PROGRAM.

    (a) Authorization of Appropriations.--Section 48103 is amended--
            (1) by striking ``and $21,958,500,000'' and inserting 
        ``$19,200,500,000''; and
            (2) by inserting before the period at the end the 
        following: ``, $21,480,500,000 for fiscal years ending before 
        October 1, 1997.
    (b) Obligational Authority.--Section 47104(c) is amended by 
striking ``1996'' and inserting ``1997''.

SEC. 105. INTERACCOUNT FLEXIBILITY.

    Section 106 is amended 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.
            ``(5) The Administrator may transfer budget authority 
        pursuant to this section only after--
                    ``(A) submitting a written explanation of the 
                proposed transfer to the Committees on Transportation 
                and Infrastructure and Appropriations of the House of 
                Representatives and the Committees on Commerce, 
                Science, and Transportation and Appropriations of the 
                Senate; and
                    ``(B) 30 days have passed after the explanation is 
                submitted and none of the Committees notifies the 
                Administrator in writing that it objects to the 
                proposed transfer within the 30 day period.''.

          TITLE II--AIRPORT IMPROVEMENT PROGRAM MODIFICATIONS

SEC. 201. PAVEMENT MAINTENANCE PROGRAM.

    (a) Pavement Maintenance.--Chapter 471 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, taxiways, and aprons 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. The regulations 
shall provide criteria for the Administrator to use in choosing the 
projects. At least 2 such projects must be in States without a primary 
airport that had 0.25 percent or more of the total boardings in the 
United States in the preceding calendar year. In designating a project, 
the Administrator shall take into consideration geographical, 
climatological, and soil diversity.
    ``(b) Effective Date.--This section shall be effective beginning on 
the date of enactment of the Federal Aviation Reauthorization Act of 
1996 and ending on September 30, 1999.''.
    (b) Compliance With Federal Mandates.--
            (1) Use of aip grants.--Section 47102(3) is amended--
                    (A) in subparagraph (E) by inserting ``or under 
                section 40117'' before the period at the end; and
                    (B) in subparagraph (F) by striking ``paid for by a 
                grant under this subchapter and''.
            (2) Use of passenger facility charges.--Section 40117(a)(3) 
        is amended--
                    (A) by inserting ``and'' at the end of subparagraph 
                (D);
                    (B) by striking ``; and'' at the end of 
                subparagraph (E) and inserting a period; and
                    (C) by striking subparagraph (F).
    (c) Conforming Amendment.--The 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.''.

SEC. 202. MAXIMUM PERCENTAGES OF AMOUNT MADE AVAILABLE FOR GRANTS TO 
              CERTAIN PRIMARY AIRPORTS.

    Section 47114 is amended by adding at the end thereof the 
following:
    ``(g) Sliding Scale.--
            ``(1) Notwithstanding any other provision of this title, of 
        the amount newly made available under section 48103 of this 
        title for fiscal year 1997 to make grants, not more than the 
        percentage of such amount newly made available that is 
        specified in paragraph (2) shall be distributed in total in 
        such fiscal year for grants described in paragraph (3).
            ``(2) If the amount newly made available is--
                    ``(A) not more than $1,150,000,000, then the 
                percentage is 47.0;
                    ``(B) more than $1,150,000,000 but not more than 
                $1,250,000,000, then the percentage is 46.0;
                    ``(C) more than $1,250,000,000 but not more than 
                $1,350,000,000, then the percentage is 45.4;
                    ``(D) more than $1,350,000,000 but not more than 
                $1,450,000,000, then the percentage is 44.8; or
                    ``(E) more than $1,450,000,000 but not more than 
                $1,550,000,000, then the percentage is 44.3.
            ``(3) This section applies to the aggregate amount of 
        grants in a fiscal year for projects at those primary airports 
        that each have not less than 0.25 per centum of the total 
        passenger boardings in the United States in the preceding 
        calendar year.''.

SEC. 203. DISCRETIONARY FUND.

    Section 47115 is amended--
            (1) by redesignating the second subsection (f) as 
        subsection (g); and
            (2) by adding at the end the following:
    ``(h) Priority for Letters of Intent.--In making grants in a fiscal 
year with funds made available under this section, the Secretary shall 
fulfill intentions to obligate under section 47110(e).''

SEC. 204. DESIGNATING CURRENT AND FORMER MILITARY AIRPORTS.

    (a) General Requirements.--Section 47118(a) is amended--
            (1) by striking ``not more than 15''; and
            (2) by inserting after the first sentence the following: 
        ``The maximum number of airports which may be designated by the 
        Secretary under this section at any time is 10.''.
    (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,''.
    (c) One Year Extension.--Section 47117(e)(1)(E) is amended by 
striking ``and 1996,'' and inserting ``1996, and 1997,''.

SEC. 205. STATE BLOCK GRANT PROGRAM.

    (a) Participating States.--Section 47128 is amended--
            (1) by redesignating subparagraphs (A) through (E) of 
        subsection (b)(1) as paragraphs (1) through (5), respectively;
            (2) by striking ``(1) A State'' in subsection (b) and 
        inserting ``A State''; and
            (3) by striking paragraph (2).
    (b) Use of State Priority System.--Section 47128(c) is amended by 
adding at the end the following: ``In carrying out this subsection, the 
Secretary shall permit a State to use the priority system of the State 
if such system is not inconsistent with the national priority 
system.''.
    (c) Change of Expiration Date.--Section 47128(d) is amended by 
striking ``1996'' and inserting ``1997''.

SEC. 206. ACCESS TO AIRPORTS BY INTERCITY BUSES.

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

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

SEC. 301. 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 by:
            (1) striking ``1996'' and inserting ``1997'';
            (2) inserting ``or the Federal Aviation Reauthorization Act 
        of 1996'' after ``Administration Authorization Act of 1994'';

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. ACQUISITION OF HOUSING UNITS.

    Section 40110 is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:
    ``(b) Acquisition of Housing Units.--
            ``(1) Authority.--In carrying out this part, the 
        Administrator may acquire interests in housing units outside 
        the contiguous United States.
            ``(2) Continuing obligations.--Notwithstanding section 1341 
        of title 31, United States Code, the Administrator may acquire 
        an interest in a housing unit under paragraph (1) even if there 
        is an obligation thereafter to pay necessary and reasonable 
        fees duly assessed upon such unit, including fees related to 
        operation, maintenance, taxes, and insurance.
            ``(3) Certification to congress.--The Administrator may 
        acquire an interest in a housing unit under paragraph (1) only 
        if the Administrator transmits to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and the Committee on Commerce, Science, and 
        Transportation of the Senate at least 30 days before completing 
        the acquisition a report containing--
                    ``(A) a description of the housing unit and its 
                price; and
                    ``(B) a certification that acquiring the housing 
                unit is the most cost-beneficial means of providing 
                necessary accommodations in carrying out this part.
            ``(4) Payment of fees.--The Administrator may pay, when 
        due, fees resulting from the acquisition of an interest in a 
        housing unit under this subsection from any amounts made 
        available to the Administrator.''.

SEC. 402. TECHNICAL CORRECTION OF TITLE 49 CODIFICATION.

    Section 40116(b) is amended by striking ``subsection (c) of this 
section and''.

SEC. 403. PROTECTION OF VOLUNTARY SUBMISSION OF INFORMATION.

    (a) In General.--Chapter 401 is amended by redesignating section 
40120 as section 40121 and by inserting after section 40119 the 
following:
``Sec. 40120. Protection of voluntarily submitted information
    ``(a) In General.--Notwithstanding any other provision of law, 
neither the Administrator of the Federal Aviation Administration, nor 
any agency receiving information from the Administrator, shall disclose 
voluntarily-provided safety or security related information if the 
Administrator finds that--
            ``(1) the disclosure of the information would inhibit the 
        voluntary provision of that type of information and that the 
        receipt of that type of information aids in fulfilling the 
        Administrator's safety and security responsibilities; and
            ``(2) withholding such information from disclosure would be 
        consistent with the Administrator's safety and security 
        responsibilities.
    ``(b) Regulations.--The Administrator shall issue regulations to 
carry out this section.''.
    (c) Conforming Amendment.--The table of sections at the beginning 
of chapter 401 is amended by striking the item relating to section 
40120 and inserting the following:

``40120. Protection of voluntarily submitted information.
``40121. Relationship to other laws.''.

SEC. 404. 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 of 12 months or more that the individual does 
        not satisfactorily account for or the individual is unable to 
        support statements made or there are significant 
        inconsistencies between information provided on an application) 
        be conducted for individuals who will be responsible for 
        screening passengers or property under chapter 449 of this 
        title and their supervisors.''.
    (b) Applicability.--The amendment made by subsection (a)(3) shall 
apply to individuals hired as screeners or supervisors of screeners 
after the date of the enactment of this Act.

SEC. 405. APPLICATION OF FAA REGULATIONS.

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

SEC. 406. 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 surplus in the Airport and Airway Trust Fund will 
        be spent by the Federal Aviation Administration by December 
        1996;
            (5) the existing system of funding the Federal Aviation 
        Administration will not provide the agency with sufficient 
        short-term or long-term funding;
            (6) this Act creates a sound process to review Federal 
        Aviation Administration funding and develop a funding system to 
        meet the Federal Aviation Administration's long-term funding 
        needs; and
            (7) 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 18-month reinstatement of the 
aviation excise taxes to provide short-term funding for the Federal 
Aviation Administration.

SEC. 407. AUTHORIZATION FOR STATE-SPECIFIC SAFETY MEASURES.

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

SEC. 408. SENSE OF THE SENATE REGARDING THE AIR AMBULANCE EXEMPTION 
              FROM CERTAIN FEDERAL EXCISE TAXES.

    It is the sense of the Senate that, if the excise taxes imposed by 
section 4261 or 4271 of the Internal Revenue Code of 1986 are 
reinstated, the exemption from those taxes provided by section 4261(f) 
of such Code for air transportation by helicopter for the purpose of 
providing emergency medical services should be broadened to include air 
transportation by fixed-wing aircraft for that purpose.

SEC. 409. FAA SAFETY MISSION.

    (a) In General.--Section 40104 is amended--
            (1) by inserting ``safety of'' before ``air commerce'' in 
        the section caption;
            (2) by inserting ``Safety of'' before ``Air Commerce'' in 
        the caption of subsection (a); and
            (3) by and inserting ``safety of'' before ``air commerce'' 
        in subsection (a).
    (b) Clerical Amendment.--The table of sections for chapter 401 is 
amended by striking the item relating to section 40104 and inserting:

``40104. Promotion of civil aeronautics and air commerce safety.''.

                TITLE V--COMMERCIAL SPACE TRANSPORTATION

SEC. 501. COMMERCIAL SPACE LAUNCH AMENDMENTS.

    (a) Amendments.--Chapter 701 is amended--
            (1) in the table of sections--
                    (A) by amending the item relating to section 70104 
                to read as follows:

``70104. Restrictions on launches, operations, and reentries.'';
                    (B) by amending the item relating to section 70108 
                to read as follows:

``70108. Prohibition, suspension, and end of launches, operation of 
                            launch sites and reentry sites, and 
                            reentries.'';
                    and
                    (C) by amending the item relating to section 70109 
                to read as follows:

``70109. Preemption of scheduled launches or reentries.'';
            (2) in section 70101--
                    (A) by inserting ``microgravity research,'' after 
                ``information services,'' in subsection (a)(3);
                    (B) by inserting ``, reentry,'' after ``launching'' 
                both places it appears in subsection (a)(4);
                    (C) by inserting ``, reentry vehicles,'' after 
                ``launch vehicles'' in subsection (a)(5);
                    (D) by inserting ``and reentry services'' after 
                ``launch services'' in subsection (a)(6);
                    (E) by inserting ``, reentries,'' after 
                ``launches'' both places it appears in subsection 
                (a)(7);
                    (F) by inserting ``, reentry sites,'' after 
                ``launch sites'' in subsection (a)(8);
                    (G) by inserting ``and reentry services'' after 
                ``launch services'' in subsection (a)(8);
                    (H) by inserting ``reentry sites,'' after ``launch 
                sites,'' in subsection (a)(9);
                    (I) by inserting ``and reentry site'' after 
                ``launch site'' in subsection (a)(9);
                    (J) by inserting ``reentry vehicles,'' after 
                ``launch vehicles'' in subsection (b)(2);
                    (K) by striking ``launch'' in subsection (b)(2)(A);
                    (L) by inserting ``and reentry'' after ``commercial 
                launch'' in subsection (b)(3);
                    (M) by striking ``launch'' after ``and transfer 
                commercial'' in subsection (b)(3); and
                    (N) by inserting ``and development of reentry 
                sites,'' after ``launch-site support facilities,'' in 
                subsection (b)(4);
            (3) in section 70102--
                    (A) by striking ``and any payload'' and inserting 
                in lieu thereof ``or reentry vehicle and any payload 
                from Earth'' in paragraph (3);
                    (B) by inserting ``or reentry vehicle'' after 
                ``means of a launch vehicle'' in paragraph (8);
                    (C) by redesignating paragraphs (10) through (12) 
                as paragraphs (14) through (16), respectively;
                    (D) 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 from outer space to Earth.
            ``(11) `reentry services' means--
                    ``(A) 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 issues or transfers under this chapter).
            ``(13) `reentry vehicle' means a vehicle designed to return 
        from Earth orbit or outer space to Earth, or a reusable launch 
        vehicle designed to return from outer space substantially 
        intact.''; and
                    (E) by inserting ``or reentry services'' after 
                ``launch services'' each place it appears in paragraph 
                (15), as so redesignated by subparagraph (C) of this 
                paragraph;
            (4) in section 70103(b)--
                    (A) by inserting ``and Reentries'' after 
                ``Launches'' in the subsection heading;
                    (B) by inserting ``and reentries'' after ``space 
                launches'' in paragraph (1); and
                    (C) by inserting ``and reentry'' after ``space 
                launch'' in paragraph (2);
            (5) in section 70104--
                    (A) by amending the section designation and heading 
                to read as follows:
``Sec. 70104. Restrictions on launches, operations, and reentries'';
                    (B) by inserting ``or reentry site, or to reenter a 
                reentry vehicle,'' after ``operate a launch site'' each 
                place it appears in subsection (a);
                    (C) by inserting ``or reentry'' after ``launch or 
                operation'' in subsection (a)(3) and (4);
                    (D) in subsection (b)--
                            (i) by striking ``launch license'' and 
                        inserting in lieu thereof ``license'';
                            (ii) by inserting ``or reenter'' after 
                        ``may launch''; and
                            (iii) by inserting ``or reentering'' after 
                        ``related to launching''; and
                    (E) in subsection (c)--
                            (i) by amending the subsection heading to 
                        read as follows: ``Preventing Launches and 
                        Reentries.--'';
                            (ii) by inserting ``or reentry'' after 
                        ``prevent the launch''; and
                            (iii) by inserting ``or reentry'' after 
                        ``decides the launch'';
            (6) in section 70105--
                    (A) by inserting ``or a reentry site, or the 
                reentry of a reentry vehicle,'' after ``operation of a 
                launch site'' in subsection (b)(1); and
                    (B) by striking ``or operation'' and inserting in 
                lieu thereof ``, operation, or reentry'' in subsection 
                (b)(2)(A);
            (7) in section 70106(a)--
                    (A) by inserting ``or reentry site'' after 
                ``observer at a launch site'';
                    (B) by inserting ``or reentry vehicle'' after 
                ``assemble a launch vehicle''; and
                    (C) by inserting ``or reentry vehicle'' after 
                ``with a launch vehicle'';
            (8) in section 70108--
                    (A) by amending the section designation and heading 
                to read as follows:
``Sec. 70108. Prohibition, suspension, and end of launches, operation 
              of launch sites and reentry sites, and reentries'';
                    and
                    (B) in subsection (a)--
                            (i) by inserting ``or reentry site, or 
                        reentry of a reentry vehicle,'' after 
                        ``operation of a launch site''; and
                            (ii) by inserting ``or reentry'' after 
                        ``launch or operation'';
            (9) in section 70109--
                    (A) by amending the section designation and heading 
                to read as follows:
``Sec. 70109. Preemption of scheduled launches or reentries'';
                    (B) in subsection (a)--
                            (i) by inserting ``or reentry'' after 
                        ``ensure that a launch'';
                            (ii) by inserting ``, reentry site,'' after 
                        ``United States Government launch site'';
                            (iii) by inserting ``or reentry date 
                        commitment'' after ``launch date commitment'';
                            (iv) by inserting ``or reentry'' after 
                        ``obtained for a launch'';
                            (v) by inserting ``, reentry site,'' after 
                        ``access to a launch site'';
                            (vi) by inserting ``, or services related 
                        to a reentry,'' after ``amount for launch 
                        services''; and
                            (vii) by inserting ``or reentry'' after 
                        ``the scheduled launch''; and
                    (C) in subsection (c), by inserting ``or reentry'' 
                after ``prompt launching'';
            (10) in section 70110--
                    (A) by inserting ``or reentry'' after ``prevent the 
                launch'' in subsection (a)(2); and
                    (B) by inserting ``or reentry site, or reentry of a 
                reentry vehicle,'' after ``operation of a launch site'' 
                in subsection (a)(3)(B);
            (11) in section 70111--
                    (A) by inserting ``or reentry'' after ``launch'' in 
                subsection (a)(1)(A);
                    (B) by inserting ``and reentry services'' after 
                ``launch services'' in subsection (a)(1)(B);
                    (C) by inserting ``or reentry services'' after ``or 
                launch services'' in subsection (a)(2);
                    (D) by inserting ``or reentry'' after ``commercial 
                launch'' both places it appears in subsection (b)(1);
                    (E) by inserting ``or reentry services'' after 
                ``launch services'' in subsection (b)(2)(C);
                    (F) by striking ``or its payload for launch'' in 
                subsection (d) and inserting in lieu thereof ``or 
                reentry vehicle, or the payload of either, for launch 
                or reentry''; and
                    (G) by inserting ``, reentry vehicle,'' after 
                ``manufacturer of the launch vehicle'' in subsection 
                (d);
            (12) in section 70112--
                    (A) by inserting ``or reentry'' after ``one 
                launch'' in subsection (a)(3);
                    (B) by inserting ``or reentry services'' after 
                ``launch services'' in subsection (a)(4);
                    (C) by inserting ``or reentry services'' after 
                ``launch services'' each place it appears in subsection 
                (b);
                    (D) by inserting ``applicable'' after ``carried out 
                under the'' in paragraphs (1) and (2) of subsection 
                (b);
                    (E) by striking ``, Space, and Technology'' in 
                subsection (d)(1);
                    (F) by inserting ``or Reentries'' after 
                ``Launches'' in the heading for subsection (e); and
                    (G) by inserting ``or reentry site or a reentry'' 
                after ``launch site'' in subsection (e);
            (13) in section 70113(a)(1) and (d)(1) and (2), by 
        inserting ``or reentry'' after ``one launch'' each place it 
        appears;
            (14) in section 70115(b)(1)(D)(i)--
                    (A) by inserting ``reentry site,'' after ``launch 
                site,''; and
                    (B) by inserting ``or reentry vehicle'' after 
                ``launch vehicle'' both places it appears; and
            (15) in section 70117--
                    (A) by inserting ``or reentry site, or to reenter a 
                reentry vehicle'' after ``operate a launch site'' in 
                subsection (a);
                    (B) by inserting ``or reentry'' after ``approval of 
                a space launch'' in subsection (d);
                    (C) by amending subsection (f) to read as follows:
    ``(f) Launch Not an Export; Reentry Not an Import.--A launch 
vehicle, reentry vehicle, or payload that is launched or reentered is 
not, because of the launch or reentry, an export or import, 
respectively, for purposes of a law controlling exports or imports.''; 
and
                    (D) in subsection (g)--
                            (i) by striking ``operation of a launch 
                        vehicle or launch site,'' in paragraph (1) and 
                        inserting in lieu thereof ``reentry, operation 
                        of a launch vehicle or reentry vehicle, or 
                        operation of a launch site or reentry site,''; 
                        and
                            (ii) by inserting ``reentry,'' after 
                        ``launch,'' in paragraph (2).
    (b) Additional Amendments.--(1) Section 70105 is amended--
            (A) by inserting ``(1)'' before ``A person may apply'' in 
        subsection (a);
            (B) by striking ``receiving an application'' both places it 
        appears in subsection (a) and inserting in lieu thereof 
        ``accepting an application in accordance with criteria 
        established pursuant to subsection (b)(2)(D)'';
            (C) by adding at the end of subsection (a) the following 
        new paragraph:
    ``(2) In carrying out paragraph (1), the Secretary may establish 
procedures for certification of the safety of a launch vehicle, reentry 
vehicle, or safety system, procedure, service, or personnel that may be 
used in conducting licensed commercial space launch or reentry 
activities.'';
            (D) by striking ``and'' at the end of subsection (b)(2)(B);
            (E) by striking the period at the end of subsection 
        (b)(2)(C) and inserting in lieu thereof ``; and'';
            (F) by adding at the end of subsection (b)(2) the following 
        new subparagraph:
            ``(D) regulations establishing criteria for accepting or 
        rejecting an application for a license under this chapter 
        within 60 days after receipt of such application.''; and
            (G) by inserting ``, or the requirement to obtain a 
        license,'' after ``waive a requirement'' in subsection (b)(3).
    (2) The amendment made by paragraph (1)(B) shall take effect upon 
the effective date of final regulations issued pursuant to section 
70105(b)(2)(D) of title 49, United States Code, as added by paragraph 
(1)(F) of this subsection.
    (3) Section 70102(5) is amended--
            (A) by redesignating subparagraphs (A) and (B) as 
        subparagraphs (B) and (C), respectively; and
            (B) by inserting before subparagraph (B), as so 
        redesignated by subparagraph (A) of this paragraph, the 
        following new subparagraph:
                    ``(A) activities directly related to the 
                preparation of a launch site or payload facility for 
                one or more launches;''.
    (4) Section 70103(b) is amended--
            (A) in the subsection heading, as amended by subsection 
        (a)(4)(A) of this section, by inserting ``and State Sponsored 
        Spaceports'' after ``and Reentries''; and
            (B) in paragraph (1), by inserting ``and State sponsored 
        spaceports'' after ``private sector''.
    (5) Section 70105(a)(1), as amended by subsection (b)(1) of this 
section, is amended by inserting at the end the following: ``The 
Secretary shall submit to the Committee on Science of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a written notice not later than 7 days 
after any occurrence when a license is not issued within the deadline 
established by this subsection.''.
    (6) Section 70111 is amended--
            (A) in subsection (a)(1), by inserting after subparagraph 
        (B) the following:
``The Secretary shall establish criteria and procedures for determining 
the priority of competing requests from the private sector and State 
governments for property and services under this section.'';
            (B) by striking ``actual costs'' in subsection (b)(1) and 
        inserting in lieu thereof ``additive costs only''; and
            (C) by inserting after subsection (b)(2) the following new 
        paragraph:
    ``(3) The Secretary shall ensure the establishment of uniform 
guidelines for, and consistent implementation of, this section by all 
Federal agencies.''.
    (7) Section 70112 is amended--
            (A) in subsection (a)(1), by inserting ``launch, reentry, 
        or site operator'' after ``(1) When a'';
            (B) in subsection (b)(1), by inserting ``launch, reentry, 
        or site operator'' after ``(1)A''; and
            (C) in subsection (f), by inserting ``launch, reentry, or 
        site operator'' after ``carried out under a''.
    (c) Regulations.--(1) Chapter 701 is amended by adding at the end 
the following new section:
``Sec. 70120. Regulations
    ``The Secretary of Transportation, within 6 months after the date 
of the enactment of this section, shall issue regulations to carry out 
this chapter that include--
            ``(1) guidelines for industry to obtain sufficient 
        insurance coverage for potential damages to third parties;
            ``(2) procedures for requesting and obtaining licenses to 
        operate a commercial launch vehicle and reentry vehicle;
            ``(3) procedures for requesting and obtaining operator 
        licenses for launch and reentry; and
            ``(4) procedures for the application of government 
        indemnification.''.
    (2) The table of sections for such chapter 701 is amended by adding 
after the item relating to section 70119 the following new item:

``70120. Regulations.''.
    (d) Report to Congress.--(1) Chapter 701 is further amended by 
adding at the end the following new section:
``Sec. 70121. Report to Congress
    ``The Secretary of Transportation shall submit to Congress an 
annual report to accompany the President's budget request that--
            ``(1) describes all activities undertaken under this 
        chapter, including a description of the process for the 
        application for and approval of licenses under this chapter and 
        recommendations for legislation that may further commercial 
        launches and reentries; and
            ``(2) reviews the performance of the regulatory activities 
        and the effectiveness of the Office of Commercial Space 
        Transportation.''.
    (2) The table of sections for such chapter 701 is further amended 
by adding after the item relating to section 70120, as added by 
subsection (c)(2) of this section, the following new item:

``70121. Report to Congress.''.

  TITLE VI--AIR TRAFFIC MANAGEMENT SYSTEM PERFORMANCE IMPROVEMENT ACT

SEC. 601. SHORT TITLE.

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

SEC. 602. DEFINITIONS.

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

SEC. 603. EFFECTIVE DATE.

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

                     SUBTITLE A--GENERAL PROVISIONS

SEC. 621. FINDINGS.

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

SEC. 622. PURPOSES.

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

SEC. 623. REGULATION OF CIVILIAN AIR TRANSPORTATION AND RELATED 
              SERVICES BY THE FEDERAL AVIATION ADMINISTRATION AND 
              DEPARTMENT OF TRANSPORTATION.

    (a) In General.--Section 106 is amended--
            (1) by striking ``The Administrator'' in 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) except as otherwise provided in 
                        paragraph (3), the promulgation of regulations, 
                        rules, orders, circulars, bulletins, and other 
                        official publications of the Administration; 
                        and
                            ``(ii) 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. 624. REGULATIONS.

    Section 106(f) as amended by section 623, is further amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following:
            ``(3) Regulations.--
                    ``(A) In general.--In the performance of the 
                functions of the Administrator and the Administration, 
                the Administrator is authorized to issue, rescind, and 
                revise such regulations as are necessary to carry out 
                those functions. The issuance of such regulations shall 
                be governed by the provisions of chapter 5 of title 5. 
                The Administrator shall act upon all petitions for 
                rulemaking no later than 6 months after the date such 
                petitions are filed by dismissing such petitions, by 
                informing the petitioner of an intention to dismiss, or 
                by issuing a notice of proposed rulemaking or advanced 
                notice of proposed rulemaking. The Administrator shall 
                issue a final regulation, or take other final action, 
                not later than 18 months after the date of publication 
                in the Federal Register of a notice of proposed 
                rulemaking or, in the case of an advanced notice of 
                proposed rulemaking, if issued, not later than 24 
                months after that date.
                    ``(B) Approval of Secretary of Transportation.--
                            ``(i) The Administrator may not issue a 
                        proposed regulation or final regulation that is 
                        likely to result in the expenditure by State, 
                        local, and tribal governments in the aggregate, 
                        or by the private sector, of $50,000,000 or 
                        more (adjusted annually for inflation beginning 
                        with the year following the date of enactment 
                        of the Air Traffic Management System 
                        Performance Improvement Act of 1996) in any 1 
                        year, or any regulation which is significant, 
                        unless the Secretary of Transportation approves 
                        the issuance of the regulation in advance. For 
                        purposes of this paragraph, a regulation is 
                        significant if it is likely to--
                            ``(I) have an annual effect on the economy 
                        of $100 million or more or adversely affect in 
                        a material way the economy, a sector of the 
                        economy, productivity, competition, jobs, the 
                        environment, public health or safety, or State, 
                        local, or tribal governments or communities;
                            ``(II) create a serious inconsistency or 
                        otherwise interfere with an action taken or 
                        planned by another agency;
                            ``(III) materially alter the budgetary 
                        impact of entitlements, grants, user fees, or 
                        loan programs or the rights and obligations of 
                        recipients thereof; or
                            ``(IV) raise novel legal or policy issues 
                        arising out of legal mandates.
                    ``(ii) In an emergency, the Administrator may issue 
                a regulation described in clause (i) without prior 
                approval by the Secretary, but any such emergency 
                regulation is subject to ratification by the Secretary 
                after it is issued and shall be rescinded by the 
                Administrator within 5 days (excluding Saturdays, 
                Sundays, and legal public holidays) after issuance if 
                the Secretary fails to ratify its issuance.
                    ``(iii) Any regulation that does not meet the 
                criteria of clause (i), and any regulation or other 
                action that is a routine or frequent action or a 
                procedural action, may be issued by the Administrator 
                without review or approval by the Secretary.
                    ``(iv) The Administrator shall submit a copy of any 
                regulation requiring approval by the Secretary under 
                clause (i) to the Secretary, who shall either approve 
                it or return it to the Administrator with comments 
                within 45 days after receiving it.
                    ``(C) Periodic review.--(i) Beginning on the date 
                which is 3 years after the date of enactment of the Air 
                Traffic Management System Performance Improvement Act 
                of 1996, the Administrator shall review any unusually 
                burdensome regulation issued by the Administrator after 
                the date of enactment of the Air Traffic Management 
                System Performance Improvement Act of 1996 beginning 
                not later than 3 years after the effective date of the 
                regulation to determine if the cost assumptions were 
                accurate, the benefit of the regulations, and the need 
                to continue such regulations in force in their present 
                form.
                    ``(ii) The Administrator may identify for review 
                under the criteria set forth in clause (i) unusually 
                burdensome regulations that were issued before the date 
                of enactment of the Air Traffic Management System 
                Performance Improvement Act of 1996 and that have been 
                in force for more than 3 years.
                    ``(iii) For purposes of this subparagraph, the term 
                `unusually burdensome regulation' means any regulation 
                that results in the annual expenditure by State, local, 
                and tribal governments in the aggregate, or by the 
                private sector, of $25,000,000 or more (adjusted 
                annually for inflation beginning with the year 
                following the date of enactment of the Air Traffic 
                Management System Performance Act of 1996) in any year.
                    ``(iv) The periodic review of regulations may be 
                performed by advisory committees and the Management 
                Advisory Council established under subsection (p).''.

SEC. 625. PERSONNEL AND SERVICES.

    Section 106 is amended by adding at the end the following new 
subsection:
    ``(l) Personnel and Services.--
            ``(1) Officers and employees.--Except as provided in 
        section 40121(a) of this title and section 347 of Public Law 
        104-50, the Administrator is authorized, in the performance of 
        the functions of the Administrator, to appoint, transfer, and 
        fix the compensation of such officers and employees, including 
        attorneys, as may be necessary to carry out the functions of 
        the Administrator and the Administration. 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 40121(a), nor shall the Administrator be bound by any 
        requirement to establish such compensation or benefits at 
        particular levels.
            ``(2) Experts and consultants.--The Administrator is 
        authorized to obtain the services of experts and consultants in 
        accordance with section 3109 of title 5.
            ``(3) Transportation and per diem expenses.--The 
        Administrator is authorized to pay transportation expenses, and 
        per diem in lieu of subsistence expenses, in accordance with 
        chapter 57 of title 5.
            ``(4) Use of personnel from other agencies.--The 
        Administrator is authorized to utilize the services of 
        personnel of any other Federal agency (as such term is defined 
        under section 551(1) of title 5).
            ``(5) Voluntary services.--
                    ``(A) 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. 626. CONTRACTS.

    Section 106(l) as added by section 625 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 governmental 
entity, or any person, firm, association, corporation, or educational 
institution, on such terms and conditions as the Administrator may 
consider appropriate.''.

SEC. 627. FACILITIES.

    Section 106 as amended by section 625 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. 628. PROPERTY.

    Section 106 as amended by section 628 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. 629. TRANSFERS OF FUNDS FROM OTHER FEDERAL AGENCIES.

    Section 106 as amended by section 629 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 law 
to the Administrator or functions transferred pursuant to law to the 
Administrator on or after the date of the enactment of the Air Traffic 
Management System Performance Improvement Act of 1996.''.

SEC. 630. MANAGEMENT ADVISORY COUNCIL.

    Section 106 as amended by section 631 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 Administration management, 
        policy, spending, funding, and regulatory matters affecting the 
        aviation industry, the Council may submit comments, recommended 
        modifications, and dissenting views to the Administrator. The 
        Administrator shall include in any submission to Congress, the 
        Secretary, or the general public, and in any submission for 
        publication in the Federal Register, a description of the 
        comments, recommended modifications, and dissenting views 
        received from the Council, together with the reasons for any 
        differences between the views of the Council and the views or 
        actions of the Administrator.
            ``(2) Membership.--The Council shall consist of 15 members, 
        who shall consist of--
                    ``(A) a designee of the Secretary of 
                Transportation;
                    ``(B) a designee of the Secretary of Defense; and
                    ``(C) 13 members representing aviation interests, 
                appointed by the President by and with the advice and 
                consent of the Senate.
            ``(3) Qualifications.--No member appointed under paragraph 
        (2)(C) may serve as an officer or employee of the United States 
        Government while serving as a member of the Council.
            ``(4) Functions.--
                    ``(A) In general.--(i) The Council shall provide 
                advice and counsel to the Administrator on issues which 
                affect or are affected by the operations of the 
                Administrator. The Council shall function as an 
                oversight resource for management, policy, spending, 
                and regulatory matters under the jurisdiction of the 
                Administration.
                    ``(ii) The Council shall review the rulemaking 
                cost-benefit analysis process and develop 
                recommendations to improve the analysis and ensure that 
                the public interest is fully protected.
                    ``(iii) The Council shall review the process 
                through which the Administration determines to use 
                advisory circulars and service bulletins.
                    ``(B) Meetings.--The Council shall meet on a 
                regular and periodic basis or at the call of the 
                chairman or of the Administrator.
                    ``(C) Access to documents and staff.--The 
                Administration may give the Council appropriate access 
                to relevant documents and personnel of the 
                Administration, and the Administrator shall make 
                available, consistent with the authority to withhold 
                commercial and other proprietary information under 
                section 552 of title 5 (commonly known as the `Freedom 
                of Information Act'), cost data associated with the 
                acquisition and operation of air traffic service 
                systems. Any member of the Council who receives 
                commercial or other proprietary data from the 
                Administrator shall be subject to the provisions of 
                section 1905 of title 18, pertaining to unauthorized 
                disclosure of such information.
            ``(5) Federal advisory committee act not to apply.--The 
        Federal Advisory Committee Act (5 U.S.C. App.) does not apply 
        to the Council or such aviation rulemaking committees as the 
        Administrator shall designate.
            ``(6) Administrative matters.--
                    ``(A) Terms of members.--(i) Except as provided in 
                subparagraph (B), members of the Council appointed by 
                the President under paragraph (2)(C) shall be appointed 
                for a term of 3 years.
                    ``(ii) Of the members first appointed by the 
                President--
                            ``(I) 4 shall be appointed for terms of 1 
                        year;
                            ``(II) 5 shall be appointed for terms of 2 
                        years; and
                            ``(III) 4 shall be appointed for terms of 3 
                        years.
                    ``(iii) An individual chosen to fill a vacancy 
                shall be appointed for the unexpired term of the member 
                replaced.
                    ``(iv) A member whose term expires shall continue 
                to serve until the date on which the member's successor 
                takes office.
                    ``(B) Chairman; vice chairman.--The Council shall 
                elect a chair and a vice chair from among the members 
                appointed under paragraph (2)(C), each of whom shall 
                serve for a term of 1 year. The vice chair shall 
                perform the duties of the chairman in the absence of 
                the chairman.
                    ``(C) Travel and per diem.--Each member of the 
                Council shall be paid actual travel expenses, and per 
                diem in lieu of subsistence expenses when away from his 
                or her usual place of residence, in accordance with 
                section 5703 of title 5.
                    ``(D) Detail of personnel from the 
                administration.--The Administrator shall make available 
                to the Council such staff, information, and 
                administrative services and assistance as may 
                reasonably be required to enable the Council to carry 
                out its responsibilities under this subsection.''.

SEC. 631. AIRCRAFT ENGINE STANDARDS.

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

SEC. 632. 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.

   SUBTITLE B--FEDERAL AVIATION ADMINISTRATION STREAMLINING PROGRAMS

SEC. 651. REVIEW OF ACQUISITION MANAGEMENT SYSTEM.

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

SEC. 652. AIR TRAFFIC CONTROL MODERNIZATION REVIEWS.

    Chapter 401, as amended by section 404 of this Act, is amended by 
redesignating section 40121 as 40123, and 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) Exceptions and Report.--
            ``(1) Continuance of program, etc.--Notwithstanding 
        subsection (a), the Administrator may continue an acquisitions 
        program required to be terminated under subsection (a) if the 
        Administrator determines that termination would be inconsistent 
        with the development or operation of the national air 
        transportation system in a safe and efficient manner.
            ``(2) Department of defense.--The Department of Defense 
        shall have the same exemptions from acquisition laws as are 
        waived by the Administrator under section 348(b) of Public Law 
        104-50 when engaged in joint actions to improve or replenish 
        the national air traffic control system. The Administration may 
        acquire real property, goods, and services through the 
        Department of Defense, or other appropriate agencies, but is 
        bound by the acquisition laws and regulations governing those 
        cases.
            ``(3) Report.--If the Administrator makes a determination 
        under paragraph (1), the Administrator shall transmit a copy of 
        the determination, together with a statement of the basis for 
        the determination, to the Committees on Appropriations of the 
        Senate and the House of Representatives, the Committee on 
        Commerce, Science, and Transportation of the Senate, and the 
        Committee on Transportation and Infrastructure of the House of 
        Representatives.''.

SEC. 653. FEDERAL AVIATION ADMINISTRATION PERSONNEL MANAGEMENT SYSTEM.

    Chapter 401, as amended by section 652, is further amended by 
inserting after section 40121 the following new section:
``Sec. 40122. Federal Aviation Administration personnel management 
              system
    ``(a) In General.--
            ``(1) Consultation and negotiation.--In developing and 
        making changes to the personnel management system initially 
        implemented by the Administrator on April 1, 1996, the 
        Administrator shall negotiate with the exclusive bargaining 
        representatives of employees of the Administration certified 
        under section 7111 of title 5 and consult with other employees 
        of the Administration.
            ``(2) Mediation.--If the Administrator does not reach an 
        agreement under paragraph (1) with the exclusive bargaining 
        representatives, the services of the Federal Mediation and 
        Conciliation Service shall be used to attempt to reach such 
        agreement. If the services of the Federal Mediation and 
        Conciliation Service do not lead to an agreement, the 
        Administrator's proposed change to the personnel management 
        system shall not take effect until 60 days have elapsed after 
        the Administrator has transmitted the proposed change, along 
        with the objections of the exclusive bargaining representatives 
        to the change, and the reasons for such objections, to the 
        Congress.
            ``(3) Cost savings and productivity goals.--The 
        Administration and the exclusive bargaining representatives of 
        the employees shall use every reasonable effort to find cost 
        savings and to increase productivity within each of the 
        affected bargaining units.
            ``(4) Annual budget discussions.--The Administration and 
        the exclusive bargaining representatives of the employees shall 
        meet annually for the purpose of finding additional cost 
        savings within the Administration's annual budget as it applies 
        to each of the affected bargaining units and throughout the 
        agency.
    ``(b) Expert Evaluation.--On the date 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.
    ``(c) Pay Restriction.--No officer or employee of the 
Administration may receive an annual rate of basic pay in excess of the 
annual rate of basic pay payable to the Administrator.
    ``(d) Ethics.--The Administration shall be subject to Executive 
Order 12674 and regulations and opinions promulgated by the Office of 
Government Ethics, including those set forth in section 2635 of title 5 
of the Code of Federal Regulations.
    ``(e) Employee Protections.--Until July 1, 1999, basic wages 
(including locality pay) and operational differential pay provided 
employees of the Administration shall not be involuntarily adversely 
affected by reason of the enactment of this section, except for 
unacceptable performance or by reason of a reduction in force or 
reorganization or by agreement between the Administration and the 
affected employees' exclusive bargaining representative.
    ``(f) Labor-Management Agreements.--Except as otherwise provided by 
this title, all labor-management agreements covering employees of the 
Administration that are in effect on the effective date of the Air 
Traffic Management System Performance Improvement Act of 1996 shall 
remain in effect until their normal expiration date, unless the 
Administrator and the exclusive bargaining representative agree to the 
contrary.''.

SEC. 654. CONFORMING AMENDMENT.

    The chapter analysis for chapter 401, as amended by section 403(b) 
of this Act, is amended by striking the item relating to section 40120 
and inserting the following new items:

``40121. Air traffic control modernization reviews.
``40122. Federal Aviation Administration personnel management system.
``40123. Relationship to other laws.''.

  SUBTITLE C--SYSTEM TO FUND CERTAIN FEDERAL AVIATION ADMINISTRATION 
                               FUNCTIONS

SEC. 671. FINDINGS.

    The Congress finds the following:
            (1) The Administration is recognized throughout the world 
        as a leader in aviation safety.
            (2) The Administration certifies aircraft, engines, 
        propellers and other manufactured parts.
            (3) The Administration certifies more than 650 training 
        schools for pilots and 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 certifies more than 6,000 medical 
        examiners, each of whom is then qualified to medically certify 
        the qualifications of pilots and non-pilots.
            (6) The Administration certifies more than 470 airports, 
        and provides a limited certification for another 205 airports. 
        Other airports in the United States are also reviewed by the 
        Administration.
            (7) The Administration each year performs more than 355,000 
        inspections.
            (8) The Administration issues more than 655,000 pilots 
        licenses and more than 560,000 non-pilot licenses (e.g., 
        mechanics).
            (9) The Administration's certification means that the 
        product meets world-wide recognized standards of safety and 
        reliability.
            (10) The Administration's certification means aviation-
        related equipment and services meet world-wide recognized 
        standards.
            (11) The Administration's certification is recognized by 
        governments and businesses throughout the world and as such may 
        be a valuable element for any company desiring to sell 
        aviation-related products throughout the world.
            (12) The Administration's certification may constitute a 
        valuable license, franchise 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.

SEC. 672. PURPOSES.

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

SEC. 673. USER FEES FOR VARIOUS FEDERAL AVIATION ADMINISTRATION 
              SERVICES.

    (a) In General.--Chapter 453 is amended by striking section 45301 
and inserting the following new section:
``Sec. 45301. General provisions
    ``(a) Schedule of Fees.--The Administrator shall establish a 
schedule of new fees, and a collection process for such fees, for the 
following services provided by the Administration:
            ``(1) Air traffic control and related services provided to 
        aircraft (other than foreign government aircraft) that neither 
        take off from nor land in the United States.
            ``(2) Services (other than air traffic control services) 
        provided to a foreign government.
    ``(b) Limitations.--
            ``(1) Authorization and impact considerations.--In 
        establishing fees under subsection (a), the Administrator--
                    ``(A) is authorized to recover in fiscal year 1997 
                $100,000,000; and
                    ``(B) shall ensure that each of the fees required 
                by subsection (a), is reasonably related to--
                            ``(i) the Administration's total cost of 
                        providing the service rendered; or
                            ``(ii) the value of the service provided to 
                        the recipient, including in the case of air 
                        traffic control and related services described 
                        in subsection (a)(1), distance traveled, 
                        aircraft weight or size, and the nature of the 
                        operation conducted.
            ``(2) Publication; comment.--The Administrator shall 
        publish in the Federal Register an initial fee schedule and 
        associated collection process as an interim final rule, 
        pursuant to which public comment will be sought and a final 
        rule issued.
    ``(c) Use of Experts and Consultants.--In developing the system, 
the Administrator may consult with such nongovernmental experts as the 
Administrator may employ and the Administrator may utilize the services 
of experts and consultants under section 3109 of title 5 without regard 
to the limitation imposed by the last sentence of section 3109(b) of 
such title, and may contract on a sole source basis, notwithstanding 
any other provision of law to the contrary. Notwithstanding any other 
provision of law to the contrary, the Administrator may retain such 
experts under a contract awarded on a basis other than a competitive 
basis and without regard to any such provisions requiring competitive 
bidding or precluding sole source contract authority.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 453 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 is repealed.
            (2) Conforming amendment.--The chapter analysis for chapter 
        701 is amended by striking the item relating to section 70118.

SEC. 674. INDEPENDENT ASSESSMENT AND TASK FORCE TO REVIEW EXISTING AND 
              INNOVATIVE FUNDING MECHANISMS.

    (a) Independent Assessment.--
            (1) Initiation.--As soon as all members of the task force 
        are appointed under subsection (b) of this section, the 
        Administrator shall contract with an entity independent of the 
        Administration and the Department of Transportation to conduct 
        a complete independent assessment of the financial requirements 
        of the Administration through the year 2002.
            (2) Assessment criteria.--The Administrator shall provide 
        to the independent entity estimates of the financial 
        requirements of the Administration for the period described in 
        paragraph (1), using as a base the fiscal year 1997 
        authorization levels established by the Congress. The 
        independent assessment shall be based on an objective analysis 
        of agency funding needs.
            (3) Certain factors to be taken into account.--The 
        independent assessment shall take into account all relevant 
        factors, including--
                    (A) anticipated air traffic forecasts;
                    (B) other workload measures;
                    (C) estimated productivity gains, if any, which 
                contribute to budgetary requirements;
                    (D) the need for programs; and
                    (5) the need to provide for continued improvements 
                in all facets of aviation safety, along with 
                operational improvements in air traffic control.
            (4) Cost allocation.--The independent assessment shall also 
        assess the costs to the Administration occasioned by the 
        provision of services to each segment of the aviation system.
            (5) Deadline.--The independent assessment shall be 
        completed no later than 90 days after the contract is awarded, 
        and shall be submitted to the task force, the Secretary, the 
        Committee on Commerce, Science, and Transportation of the 
        Senate, and the Committee on Transportation and Infrastructure 
        of the House of Representatives.
    (b) Task Force.--
            (1) Establishment.--Not later than 30 days after the date 
        of enactment of this Act, the Secretary shall establish an 11-
        member task force, independent of the Administration and the 
        Department of Transportation.
            (2) Membership.--The members of the task force shall be 
        selected from among individuals who have expertise in the 
        aviation industry and who are able, collectively, to represent 
        a balanced view of the issues important to general aviation, 
        major air carriers, air cargo carriers, regional air carriers, 
        business aviation, airports, aircraft manufacturers, the 
        financial community, aviation industry workers, and airline 
        passengers. At least one member of the task force shall have 
        detailed knowledge of the Congressional budgetary process.
            (3) Hearings and consultation.--
                    (A) Hearings.--The task force shall take such 
                testimony and solicit and receive such comments from 
                the public and other interested parties as it deems 
                appropriate, shall conduct 2 public hearings after 
                affording adequate notice to the public thereof, and is 
                authorized to conduct such additional hearings as may 
                be necessary.
                    (B) Consultation.--The task force shall consult on 
                a regular and frequent basis with the Secretary of 
                Transportation, the Committee on Commerce, Science, and 
                Transportation of the Senate, and the Committee on 
                Transportation and Infrastructure of the House of 
                Representatives.
                    (C) FACA not to apply.--The task force shall not be 
                considered an advisory committee for purposes of the 
                Federal Advisory Committee Act (5 U.S.C. App.).
            (4) Duties.--
                    (A) Report to Secretary.--
                            (i) In general.--The task force shall 
                        submit a report setting forth a comprehensive 
                        analysis of the Administration's budgetary 
                        requirements through fiscal year 2002, based 
                        upon the independent assessment under 
                        subsection (a), that analyzes alternative 
                        financing and funding means for meeting the 
                        needs of the aviation system through the year 
                        2002. The task force shall submit a preliminary 
                        report of that analysis to the Secretary not 
                        later than 6 months after the independent 
                        assessment is completed under subsection (a). 
                        The Secretary shall provide comments on the 
                        preliminary report to the task force within 30 
                        days after receiving it. The task force shall 
                        issue a final report of such comprehensive 
                        analysis within 30 days after receiving the 
                        Secretary's comments on its preliminary report.
                            (ii) Contents.--The report submitted by the 
                        task force under clause (i)--
                                    (I) shall consider the independent 
                                assessment under subsection (a);
                                    (II) shall consider estimated cost 
                                savings, if any, resulting from the 
                                procurement and personnel reforms 
                                included in this Act or in sections 347 
                                and 348 of Public Law 105-40, and 
                                additional financial initiatives;
                                    (III) shall include specific 
                                recommendations to the Congress on how 
                                the Administration can reduce costs, 
                                raise additional revenue for the 
                                support of agency operations, and 
                                accelerate modernization efforts; and
                                    (IV) shall include a draft bill 
                                containing the changes in law necessary 
                                to implement its recommendations.
                    (B) Recommendations.--The task force shall make 
                such recommendations under subparagraph (A)(III) as the 
                task force deems appropriate. Those recommendations may 
                include--
                            (i) alternative financing and funding 
                        proposals, including linked financing 
                        proposals;
                            (ii) modifications to existing levels of 
                        Airport and Airways Trust Fund receipts and 
                        taxes for each type of tax;
                            (iii) establishment of a cost-based user 
                        fee system based on, but not limited to, 
                        criteria under subparagraph (F) and methods to 
                        ensure that costs are borne by users on a fair 
                        and equitable basis;
                            (iv) methods to ensure that funds collected 
                        from the aviation community are able to meet 
                        the needs of the agency;
                            (v) methods to ensure that funds collected 
                        from the aviation community and passengers are 
                        used to support the aviation system;
                            (vi) means of meeting the airport 
                        infrastructure needs for large, medium, and 
                        small airports; and
                            (vii) any other matter the task force deems 
                        appropriate to address the funding and needs of 
                        the Administration and the aviation system.
                    (C) Additional recommendations.--The task force 
                report may also make recommendations concerning--
                            (i) means of improving productivity by 
                        expanding and accelerating the use of 
                        automation and other technology;
                            (ii) means of contracting out services 
                        consistent with this Act, other applicable law, 
                        and safety and National defense needs;
                            (iii) methods to accelerate air traffic 
                        control modernization and improvements in 
                        aviation safety and safety services;
                            (iv) the elimination of unneeded programs; 
                        and
                            (v) a limited innovative program based on 
                        funding mechanisms such as loan guarantees, 
                        financial partnerships with for-profit private 
                        sector entities, government sponsored 
                        enterprises, and revolving loan funds, as a 
                        means of funding specific facilities and 
                        equipment projects, and to provide limited 
                        additional funding alternatives for airport 
                        capacity development.
                    (D) Impact assessment for recommendations.--For 
                each recommendation contained in the task force's 
                report, the report shall include a full analysis and 
                assessment of the impact implementation of the 
                recommendation would have on--
                            (i) safety;
                            (ii) administrative costs;
                            (iii) the Congressional budget process;
                            (iv) the economics of the industry 
                        (including the proportionate share of all 
                        users);
                            (v) the ability of the Administration to 
                        utilize the sums collected; and
                            (vi) the funding needs of the 
                        Administration.
                    (E) Trust fund tax recommendations.--If the task 
                force's report includes a recommendation that the 
                existing Airport and Airways Trust Fund tax structure 
                be modified, the report shall--
                            (i) state the specific rates for each group 
                        affected by the proposed modifications;
                            (ii) consider the impact such modifications 
                        shall have on specific users and the public 
                        (including passengers); and
                            (iii) state the basis for the 
                        recommendations.
                    (F) Fee system recommendations.--If the task 
                force's report includes a recommendation that a fee 
                system be established, including an air traffic control 
                performance-based user fee system, the report shall 
                consider--
                            (i) the impact such a recommendation would 
                        have on passengers, air fares (including low-
                        fare, high frequency service), service, and 
                        competition;
                            (ii) existing contributions provided by 
                        individual air carriers toward funding the 
                        Administration and the air traffic control 
                        system through contributions to the Airport and 
                        Airways Trust Fund;
                            (iii) continuing the promotion of fair and 
                        competitive practices;
                            (iv) the unique circumstances associated 
                        with inter island air carrier service in Hawaii 
                        and rural air service in Alaska;
                            (v) the impact such a recommendation would 
                        have on service to small communities;
                            (vi) the impact such a recommendation would 
                        have on services provided by regional air 
                        carriers;
                            (vii) alternative methodologies for 
                        calculating fees so as to achieve a fair and 
                        reasonable distribution of costs of service 
                        among users;
                            (viii) the usefulness of phased-in 
                        approaches to implementing such a financing 
                        system;
                            (ix) means of assuring the provision of 
                        general fund contributions, as appropriate, 
                        toward the support of the Administration; and
                            (x) the provision of incentives to 
                        encourage greater efficiency in the provision 
                        of air traffic services by the Administration 
                        and greater efficiency in the use of air 
                        traffic services by aircraft operators.
    (c) Report by Secretary to Congress.--
            (1) Consideration of task force's preliminary report.--
        Within 30 days after receiving preliminary report of the task 
        force under subsection (b), the Secretary shall furnish 
        comments on that report to the task force.
            (2) Secretary's report to Congress.--Within 30 days after 
        receiving the final report of the task force and in no event 
        more than 1 year after the date of enactment of this Act, the 
        Secretary shall submit a report, based upon the final report of 
        the task force, containing the Secretary's recommendations for 
        funding the needs of the aviation system through the year 2002 
        to the Committee on Commerce, Science, and Transportation of 
        the Senate and the Committee on Transportation and 
        Infrastructure of the House of Representatives.
            (3) Contents.--The Secretary shall include in his report to 
        the Congress under paragraph (2)--
                    (A) a copy of the final report of the task force; 
                and
                    (B) a draft bill containing the changes in law 
                necessary to implement the Secretary's recommendations.
            (4) Publication.--The Secretary shall cause a copy of the 
        reports to be printed in the Federal Register upon their 
        submission to Congress.
    (d) GAO Audit of Cost Allocation.--The Comptroller General shall 
conduct an assessment of the manner in which costs for air traffic 
control services are allocated between the Administration and the 
Department of Defense. The Comptroller General shall report the results 
of the assessment, together with any recommendations the Comptroller 
General may have for reallocation of costs and for opportunities to 
increase the efficiency of air traffic control services provided by the 
Administration and by the Department of Defense, to the task force, the 
Administrator, the Secretary of Defense, the Committee on Commerce of 
the House of Representatives, and the Committee on Commerce, Science, 
and Transportation of the Senate not later than 120 days after the date 
of enactment of this Act.

SEC. 675. PROCEDURE FOR CONSIDERATION OF CERTAIN FUNDING PROPOSALS.

    (a) In General.--Chapter 481 is amended by adding at the end 
thereof the following:
``Sec. 48111. Funding Proposals
    ``(a) Introduction and Referral.--Within 15 days (not counting any 
day on which either House is not in session) after a funding proposal 
is submitted to the House of Representatives and the Senate by the 
Secretary of Transportation under section 674(c) of the Air Traffic 
Management System Performance Improvement Act of 1996, an implementing 
bill with respect to such funding proposal shall be introduced in the 
House by the majority leader of the House, for himself and the minority 
leader of the House, or by Members of the House designated by the 
majority leader and minority leader of the House; and shall be 
introduced in the Senate by the majority leader of the Senate, for 
himself and the minority leader of the Senate, or by Members of the 
Senate designated by the majority leader and minority leader of the 
Senate. The implementing bill shall be referred by the Presiding 
Officers of the respective Houses to the appropriate committee, or, in 
the case of a bill containing provisions within the jurisdiction of two 
or more committees, jointly to such committees for consideration of 
those provisions within their respective jurisdictions.
    ``(b) Consideration in the House of Representatives.--
            ``(1) Referral and reporting.--Any committee of the House 
        of Representatives to which a implementing bill is referred 
shall report it, with or without recommendation, not later than the 
45th calendar day of session after the date of its introduction. If any 
committee fails to report the bill within that period, it is in order 
to move that the House discharge the committee from further 
consideration of the bill. A motion to discharge may be made only by a 
Member favoring the bill (but only at a time or place designated by the 
Speaker in the legislative schedule of the day after the calendar day 
on which the Member offering the motion announces to the House his 
intention to do so and the form of the motion), the motion is highly 
privileged. Debate thereon shall be limited to not more than one hour, 
the time to be divided in the House equally between a proponent and an 
opponent. The previous question shall be considered as ordered on the 
motion to its adoption without intervening motion. A motion to 
reconsider the vote by which the motion is agreed to or disagreed to 
shall not be in order.
            ``(2) Consideration of implementing bill.--After an 
        implementing bill is reported or a committee has been 
        discharged from further consideration, it is in order to move 
        that the House resolve into the Committee of the Whole House on 
        the State of the Union for consideration of the bill. If 
        reported and the report has been available for at least one 
        calendar day, all points of order against the bill and against 
        consideration of the bill are waived. If discharged, all points 
        of order against the bill and against consideration of the bill 
        are waived. The motion is highly privileged. A motion to 
        reconsider the vote by which the motion is agreed to or 
        disagreed to shall not be in order. During consideration of the 
        bill in the committee of the Whole, the first reading of the 
        bill shall be dispensed with. General debate shall proceed, 
        shall be confined to the bill, and shall not exceed one hour 
        equally divided and controlled by a proponent and an opponent 
        of the bill. The bill shall be considered as read for amendment 
        under the five-minute rule. Only one motion to rise shall be in 
        order, except if offered by the manager. No amendment to the 
        bill is in order except an amendment that is relevant to 
        aviation funding and the Federal Aviation Administration. 
        Consideration of the bill for amendment shall not exceed one 
        hour excluding time for recorded votes and quorum calls. No 
        amendment shall be subject to further amendment, except pro 
        forma amendments for the purposes of debate only. At the 
        conclusion of the consideration of the bill for amendment, the 
        Committee shall rise and report the bill to the House with such 
        amendments as may have been adopted. The previous question 
        shall be considered as ordered on the bill and amendments 
        thereto to final passage without intervening motion. A motion 
        to reconsider the vote on passage of the bill shall not be in 
        order.
            ``(3) Appeals of rulings.--Appeals from decision of the 
        Chair regarding application of the rules of the House of 
        Representatives to the procedure relating to an implementing 
        bill shall be decided without debate.
            ``(4) Consideration of more than one implementing bill.--It 
        shall not be in order to consider under this subsection more 
        than one implementing bill under this section, except for 
        consideration of a similar Senate bill (unless the House has 
        already rejected an implementing bill) or more than one motion 
        to discharge described in paragraph (1) with respect to an 
        implementing bill.
    ``(c) Consideration in the Senate.--
            ``(1) Referral and reporting.--An implementing bill 
        introduced in the Senate shall be referred to the appropriate 
        committee or committees. A committee to which an implementing 
        bill has been referred shall report the bill not later than the 
        45th day of session following the date of introduction of that 
        bill. If any committee fails to report the bill within that 
        period, that committee shall be automatically discharged from 
        further consideration of the bill and the bill shall be placed 
        on the Calendar.
            ``(2) Implementing bill from house.--When the Senate 
        receives from the House of Representatives an implementing 
        bill, the bill shall not be referred to committee and shall be 
        placed on the Calendar.
            ``(3) Consideration of single implementing bill.--After the 
        Senate has proceeded to the consideration of an implementing 
        bill under this subsection, then no other implementing bill 
        originating in that same House shall be subject to the 
        procedures set forth in this subsection.
            ``(4) Amendments.--No amendment to the bill is in order 
        except an amendment that is relevant to aviation funding and 
        the Federal Aviation Administration. Consideration of the bill 
        for amendment shall not exceed one hour excluding time for 
        recorded votes and quorum calls. No amendment shall be subject 
        to further amendment, except for perfecting amendments.
            ``(5) Motion nondebatable.--A motion to proceed to 
        consideration of an implementing bill under this subsection 
        shall not be debatable. It shall not be in order to move to 
        reconsider the vote by which the motion to proceed was adopted 
        or rejected, although subsequent motions to proceed may be made 
        under this paragraph.
            ``(6) Limit on consideration.--
                    ``(A) After no more than 20 hours of consideration 
                of an implementing bill, the Senate shall proceed, 
                without intervening action or debate (except as 
                permitted under paragraph (9)), to vote on the final 
                disposition thereof to the exclusion of all amendments 
                not then pending and to the exclusion of all motions, 
                except a motion to reconsider or table.
                    ``(B) The time for debate on the implementing bill 
                shall be equally divided between the Majority Leader 
                and the Minority Leader or their designees.
            ``(7) Debate of amendments.--Debate on any amendment to an 
        implementing bill shall be limited to one hour, equally divided 
        and controlled by the Senator proposing the amendment and the 
        majority manager, unless the majority manager is in favor of 
        the amendment, in which case the minority manager shall be in 
        control of the time in opposition.
            ``(8) No motion to recommit.--A motion to recommit an 
        implementing bill shall not be in order.
            ``(9) Disposition of senate bill.--If the Senate has read 
        for the third time an implementing bill that originated in the 
        Senate, then it shall be in order at any time thereafter to 
        move to proceed to the consideration of an implementing bill 
        for the same special message received from the House of 
        Representatives and placed on the Calendar pursuant to 
        paragraph (2), strike all after the enacting clause, substitute 
        the text of the Senate implementing bill, agree to the Senate 
        amendment, and vote on final disposition of the House 
        implementing bill, all without any intervening action or 
        debate.
            ``(10) Consideration of house message.--Consideration in 
        the Senate of all motions, amendments, or appeals necessary to 
        dispose of a message from the House of Representatives on an 
        implementing bill shall be limited to not more than 4 hours. 
        Debate on each motion or amendment shall be limited to 30 
        minutes. Debate on any appeal or point of order that is 
        submitted in connection with the disposition of the House 
        message shall be limited to 20 minutes. Any time for debate 
        shall be equally divided and controlled by the proponent and 
        the majority manager, unless the majority manager is a 
        proponent of the motion, amendment, appeal, or point of order, 
        in which case the minority manager shall be in control of the 
        time in opposition.
    ``(d) Consideration in Conference.--
            ``(1) Convening of conference.--In the case of disagreement 
        between the two Houses of Congress with respect to an 
        implementing bill passed by both Houses, conferees should be 
        promptly appointed and a conference promptly convened, if 
        necessary.
            ``(2) House consideration.--Notwithstanding any other rule 
        of the House of Representatives, it shall be in order to 
        consider the report of a committee of conference relating to an 
        implementing bill if such report has been available for one 
        calendar day (excluding Saturdays, Sundays, and legal holidays, 
        unless the House is in session on such a day) and the 
        accompanying statement shall have been filed in the House.
            ``(3) Senate consideration.--Consideration in the Senate of 
        the conference report and any amendments in disagreement on an 
        implementing bill shall be limited to not more than 4 hours 
        equally divided and controlled by the majority leader and the 
        minority leader or their designees. A motion to recommit the 
        conference report is not in order.
    ``(e) Definitions.--For purposes of this section--
            ``(1) Implementing bill.--The term `implementing bill' 
        means only a bill of either House of Congress which is 
        introduced as provided in subsection (a) with respect to one or 
        more Federal Aviation Administration funding proposals which 
        contains changes in existing laws or new statutory authority 
        required to implement such funding proposal or proposals.
            ``(2) Funding proposal.--The term `funding proposal' means 
        a proposal to provide interim or permanent funding for 
        operations of the Federal Aviation Administration.
    ``(e) Rules of House of Representatives and Senate.--This section 
is enacted by the Congress--
            ``(1) as an exercise of the rulemaking power of the House 
        of Representatives and the Senate, respectively, and as such 
        they are deemed a part of the rules of each House, 
        respectively, but applicable only with respect to the procedure 
        to be followed in that House in the case of implementing bills 
described in subsection (d); and they supersede other rules only to the 
extent that they are inconsistent therewith; and
            ``(2) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner and to 
        the same extent as in the case of any other rule of that 
        House.''.
    (b) Clerical Amendment.--The table of sections for chapter 481 is 
amended by adding at the end thereof the following:

``48111. Funding proposals''.

SEC. 676. ADMINISTRATIVE PROVISIONS.

    (a) In General.--Chapter 453 as amended by section 654 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.
            ``(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 
                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) Development of cost accounting system.--The 
        Administration shall develop a cost accounting system that 
        adequately and accurately reflects the investments, operating 
        and overhead costs, revenues, and other financial measurement 
        and reporting aspects of its operations.
            ``(6) 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.
            ``(7) Cost reduction and efficiency report.--Prior to the 
        submission of any proposal for establishment, implementation, 
        or expansion of any fees or taxes imposed on the aviation 
        industry, the Administrator shall prepare a report for 
        submission to the Congress which includes--
                    ``(A) a justification of the need for the proposed 
                fees or taxes;
                    ``(B) a statement of steps taken by the 
                Administrator to reduce costs and improve efficiency 
                within the Administration;
                    ``(C) an analysis of the impact of any fee or tax 
                increase on each sector of the aviation transportation 
                industry; and
                    ``(D) 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) Conforming Amendment.--The chapter analysis for chapter 453 is 
amended by striking the item relating to section 45303 and inserting 
the following:

``45303. Administrative provisions.
``45304. Maximum fees for private person services.''.

SEC. 677. ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY TRUST FUND 
              ACTIVITIES.

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

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

SEC. 678. 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 is amended 
to read as follows:
``Sec. 41742. Essential air service authorization
    ``(a) In General.--Out of the amounts received by the 
Administration credited to the account established under section 
45303(a)(3) 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, monies credited to the account established 
under section 45303(a), including the funds derived from fees imposed 
under the authority contained in section 45301(a), shall be used to 
carry out the essential air service program under this subchapter. 
Notwithstanding section 47114(g) of this title, any amounts from those 
fees that are not obligated or expended at the end of the fiscal year 
for the purpose of funding the essential air service program under this 
subchapter shall be made available to the Administration for use in 
improving rural air safety under subchapter I of chapter 471 of this 
title and shall be used exclusively for projects at rural airports 
under this subchapter.''.
    (d) Conforming Amendment.--The chapter analysis for chapter 417 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 is 
amended by adding at the end thereof the following:
    ``(e) Matching Funds.--No earlier than 2 years after the effective 
date of section 679 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 is 
transferred from the Secretary of Transportation to the Administrator.

                        TITLE VII--PILOT RECORDS

SEC. 701. SHORT TITLE.

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

SEC. 702. EMPLOYMENT INVESTIGATIONS OF PILOT APPLICANTS.

    (a) In General.--Section 44936 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 that was not subsequently 
                        overturned.
                    ``(B) Air carrier and other records.--From any air 
                carrier or other person that has employed the 
                individual at any time during the 5-year period 
                preceding the date of the employment application of the 
                individual, or from the trustee in bankruptcy for such 
                air carrier or person--
                            ``(i) records pertaining to the individual 
                        that are maintained by an air carrier under 
                        regulations set forth in--
                                    ``(I) section 121.683 of title 14, 
                                Code of Federal Regulations;
                                    ``(II) paragraph (A) of section VI, 
                                appendix I, part 121 of such title;
                                    ``(III) paragraph (A) of section 
                                IV, appendix J, part 121 of such title;
                                    ``(IV) section 125.401 of such 
                                title; and
                                    ``(V) section 135.63(a)(4) of such 
                                title; and
                            ``(ii) other records pertaining to the 
                        individual that are maintained by the air 
                        carrier or person concerning--
                                    ``(I) the training, qualifications, 
                                proficiency, or professional competence 
                                of the individual, including comments 
                                and evaluations made by a check airman 
                                designated in accordance with section 
                                121.411, 125.295, or 135.337 of such 
                                title;
                                    ``(II) any disciplinary action 
                                taken with respect to the individual 
                                that was not subsequently overturned; 
                                and
                                    ``(III) any release from employment 
                                or resignation, termination, or 
                                disqualification with respect to 
                                employment.
                    ``(C) National driver register records.--In 
                accordance with section 30305(b)(7), from the chief 
                driver licensing official of a State, information 
                concerning the motor vehicle driving record of the 
                individual.
            ``(2) Written consent; release from liability.--An air 
        carrier making a request for records under paragraph (1)--
                    ``(A) shall be required to obtain written consent 
                to the release of those records from the individual 
                that is the subject of the records requested; and
                    ``(B) may, notwithstanding any other provision of 
                law or agreement to the contrary, require the 
                individual who is the subject of the records request to 
                execute a release from liability for any claim arising 
                from the furnishing of such records to or the use of 
                such records by such air carrier (other than a claim 
                arising from furnishing information known to be false 
and maintained in violation of a criminal statute).
            ``(3) 5-year reporting period.--A person shall not furnish 
        a record in response to a request made under paragraph (1) if 
        the record was entered more than 5 years before the date of the 
        request, unless the information concerns a revocation or 
        suspension of an airman certificate or motor vehicle license 
        that is in effect on the date of the request.
            ``(4) Requirement to maintain records.--The Administrator 
        shall maintain pilot records described in paragraph (1)(A) for 
        a period of at least 5 years.
            ``(5) Receipt of consent; provision of information.--A 
        person shall not furnish a record in response to a request made 
        under paragraph (1) without first obtaining a copy of the 
        written consent of the individual who is the subject of the 
        records requested. A person who receives a request for records 
        under this paragraph shall furnish a copy of all of such 
        requested records maintained by the person not later than 30 
        days after receiving the request.
            ``(6) Right to receive notice and copy of any record 
        furnished.--A person who receives a request for records under 
        paragraph (1) shall provide to the individual who is the 
        subject of the records--
                    ``(A) 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 of the 
                        individual who is the subject of a request 
                        under paragraph (1); and
                            ``(ii) inform the individual of--
                                    ``(I) the request; and
                                    ``(II) the individual right of that 
                                individual to receive a copy of any 
                                records furnished in response to the 
                                request.
            ``(9) Right to correct inaccuracies.--An air carrier that 
        maintains or requests and receives the records of an individual 
        under paragraph (1) shall provide the individual with a 
        reasonable opportunity to submit written comments to correct 
        any inaccuracies contained in the records before making a final 
        hiring decision with respect to the individual.
            ``(10)  Right of pilot to review certain records.--
        Notwithstanding any other provision of law or agreement, an air 
        carrier shall, upon written request from a pilot employed by 
        such carrier, make available, within a reasonable time of the 
        request, to the pilot for review, any and all employment 
        records referred to in paragraph (1)(B)(i) or (ii) pertaining 
        to the employment of the pilot.
            ``(11) Privacy protections.--An air carrier that receives 
        the records of an individual under paragraph (1) may use such 
        records only to assess the qualifications of the individual in 
        deciding whether or not to hire the individual as a pilot. The 
        air carrier shall take such actions as may be necessary to 
        protect the privacy of the pilot and the confidentiality of the 
        records, including ensuring that information contained in the 
        records is not divulged to any individual that is not directly 
        involved in the hiring decision.
            ``(12) Periodic review.--Not later than 18 months after the 
        date of 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--
                    ``(A) recommendations by the Administrator 
                concerning proposed changes to Federal Aviation 
                Administration records, air carrier records, and other 
                records required to be furnished under subparagraphs 
                (A) and (B) of paragraph (1); or
                    ``(B) reasons why the Administrator does not 
                recommend any proposed changes to the records referred 
                to in subparagraph (A).
            ``(13) Regulations.--The Administrator may prescribe such 
        regulations as may be necessary--
                    ``(A) to protect--
                            ``(i) the personal privacy of any 
                        individual whose records are requested under 
                        paragraph (1); and
                            ``(ii) the confidentiality of those 
                        records;
                    ``(B) to preclude the further dissemination of 
                records received under paragraph (1) by the person who 
                requested those records; and
                    ``(C) to ensure prompt compliance with any request 
                made under paragraph (1).
    ``(g) Limitation on Liability; Preemption of State Law.--
            ``(1) Limitation on liability.--No action or proceeding may 
        be brought by or on behalf of an individual who has applied for 
        or is seeking a position with an air carrier as a pilot and who 
        has signed a release from liability, as provided for under 
        paragraph (2), against--
                    ``(A) the air carrier requesting the records of 
                that individual under subsection (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 Federal or State 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 (f)(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 whose application 
was first received by the carrier on or after the 120th day after the 
date of enactment of this Act.

SEC. 703. STUDY OF MINIMUM STANDARDS FOR PILOT QUALIFICATIONS.

    The Administrator shall appoint a task force consisting of 
appropriate representatives of the aviation industry to conduct a study 
directed toward the 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).