[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 928 Introduced in Senate (IS)]







104th CONGRESS
  1st Session
                                 S. 928

 To enhance the safety of air travel through a more effective Federal 
            Aviation Administration, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                June 15 (legislative day, June 5), 1995

Mr. Inhofe (for himself, Mr. Burns, and Mrs. Kassebaum) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
 To enhance the safety of air travel through a more effective 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.

    This Act may be cited as the ``Federal Aviation Administration 
Reform Act of 1995''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) there is widespread agreement within government and the 
        aviation industry that reform of the Federal Aviation 
        Administration is necessary to safely and efficiently 
        accommodate the projected growth of aviation within the next 
        decade;
            (2) reestablishing the Federal Aviation Administration as 
        an independent agency will ensure that the agency is able to 
        manage and regulate the safety of the air traffic control 
        system without second-guessing or interference by politically 
        appointed Department of Transportation officials;
            (3) the Federal procurement system interferes with the 
        ability of the Federal Aviation Administration to keep pace 
        with new technology;
            (4) the Federal personnel system is inflexible and unable 
        to match resources with the real personnel needs of the Federal 
        Aviation Administration;
            (5) the existing budget system does not allow for long-term 
        planning or timely acquisition of technology by the Federal 
        Aviation Administration;
            (6) without reforms in the areas of procurement, personnel, 
        and financing, the Federal Aviation Administration will 
        continue to experience delays and cost overruns in its major 
        airspace modernization programs; and
            (7) other internal management reforms will help the Federal 
        Aviation Administration become more responsive to the needs of 
        its customers, who are the users of the air traffic control 
        system.

SEC. 3. PURPOSES.

    The purposes of this Act are to--
            (1) establish the Federal Aviation Administration as an 
        independent agency;
            (2) provide for the appointment by the President of an 
        Administrator of the Federal Aviation Administration with a 
        fixed term in office of 7 years;
            (3) appoint a select panel to review and report to the 
        Congress regarding innovative financing mechanisms for ensuring 
        adequate funding for existing and future aviation 
        infrastructure needs;
            (4) establish a management advisory committee in the 
        Federal Aviation Administration to advise the Administrator on 
        management, policy, spending, and regulatory matters under the 
        jurisdiction of the agency;
            (5) mandate that final action shall be taken on all 
        rulemakings of the Federal Aviation Administration within 18 
        months after the date of their initiation;
            (6) establish a pilot program for procurement reform under 
        which the Federal Aviation Administration is exempt from 
        certain laws governing Federal acquisition practices; and
            (7) establish a pilot program for personnel reform under 
        which the Federal Aviation Administration is exempt from the 
        civil service provisions of title 5, United States Code, except 
        for provisions relating to employee benefits.

SEC. 4. DEFINITIONS.

    For the purposes of this Act the following definitions shall apply:
            (1) Administration.--The term ``Administration'' means the 
        Federal Aviation Administration established under section 5.
            (2) Administrator.--The term ``Administrator'' means the 
        Administrator of the Federal Aviation Administration appointed 
        under section 6(a).
            (3) Federal agency.--The term ``Federal agency'' has the 
        meaning provided the term ``agency'' in section 551(1) of title 
        5, United States Code.

SEC. 5. ESTABLISHMENT.

    There is established as an independent establishment in the 
executive branch (as defined under section 104 of title 5, United 
States Code), the Federal Aviation Administration. The Administration 
shall succeed the Federal Aviation Administration of the Department of 
Transportation in existence on the effective date of this Act.

SEC. 6. OFFICERS.

    (a) Administrator.--The Administration shall be administered by an 
Administrator, who shall be appointed by the President to serve for a 
7-year term of office, by and with the advice and consent of the 
Senate. The Administrator shall carry out all functions transferred to 
the Administrator by this Act and shall have authority and control over 
all personnel, programs, and activities of the Administration. The 
Administrator may be removed by the President for neglect of duty or 
malfeasance in office.
    (b) Deputy Administrator.--There shall be in the Administration a 
Deputy Administrator, who shall be appointed by the President, by and 
with the advice and consent of the Senate. The Deputy Administrator 
shall perform such functions, duties, and powers as the Administrator 
shall prescribe. The Deputy Administrator shall act for and perform the 
functions of the Administrator when the Administrator is absent or 
unable to serve, or when the office of the Administrator is vacant.
    (c) Assistant Administrators.--The Administrator shall appoint not 
more than 8 Assistant Administrators who shall perform such functions 
as the Administrator shall prescribe. The Administrator shall designate
 the order in which the Assistant Administrators shall act for and 
perform the functions of the Administrator when the Administrator, or 
in the Administrator's place the Deputy Administrator, is absent or 
unable to serve, or when the offices of the Administrator and the 
Deputy Administrator are vacant.
    (d) Chief Counsel.--There shall be in the Administration a Chief 
Counsel, who shall be appointed by the Administrator. The Chief Counsel 
shall be the chief legal officer for all legal matters arising from the 
conduct of the functions of the Administration.
    (e) Inspector General.--There shall be in the Administration an 
Inspector General appointed in accordance with the Inspector General 
Act of 1978 (5 U.S.C. App.). The Inspector General shall be compensated 
at the rate prescribed for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code.
    (f) Chief Financial Officer.--
            (1) In general.--There shall be in the Administration a 
        Chief Financial Officer who shall be appointed in accordance 
        with section 901 of title 31, United States Code. The Chief 
        Financial Officer shall perform all functions prescribed by the 
        Administrator.
            (2) Conforming amendment.--Section 901(b)(1) of title 31, 
        United States Code, is amended by adding at the end the 
        following:
                    ``(Q) The Federal Aviation Administration.''.
    (g) Limitations.--Each of the officers referred to in this section 
shall be a citizen of the United States. The Administrator shall be a 
civilian.

SEC. 7. FUNCTIONS OF ADMINISTRATOR.

    (a) In General.--The Administrator shall be responsible for the 
exercise of all powers and the discharge of all duties of the 
Administration.
    (b) Governance of Statutes.--In carrying out the functions of the 
Administration under this Act, the Administrator shall be governed by 
all applicable statutes, including the policy standards set forth in 
subtitle VII of title 49, United States Code.
    (c) Limitation on Statutory Construction.--Nothing in this Act 
shall be construed to limit in any manner the authority of the 
Administrator to promote safety by establishing and administering 
accident prevention programs, encouraging airport development, 
educating the public on the importance of aeronautics, and encouraging 
the adoption of worldwide safety standards.
    (d) Finality of Decisions; Appeals.--Decisions of the Administrator 
made pursuant to the exercise of the functions enumerated in subtitle 
VII of title 49, United States Code, shall be final administrative 
decisions. Any appeal as authorized by law on the date of enactment of 
this Act shall be taken directly to the National Transportation Safety 
Board or to any court of competent jurisdiction, as appropriate.
    (e) Conforming Amendments.--Chapter 1 of title 49, United States 
Code, is amended by striking section 106 and inserting the following 
new section:
``Sec. 106. Federal Aviation Administration
    ``(a) In General.--The Federal Aviation Administration established 
under the Federal Aviation Administration Reform Act of 1995 shall be 
administered in accordance with such Act. The Administrator shall have 
the duties and powers specified in subsection (b) and any additional 
duties and powers prescribed in the Federal Aviation Administration 
Reform Act of 1995.
    ``(b) Duties and Powers of Administrator.--(1) Except as provided 
in paragraph (2), the Administrator shall carry out--
            ``(A) duties and powers of the Secretary of Transportation 
        transferred to the Administrator under the Federal Aviation 
        Administration Reform Act of 1995 related to aviation safety 
        (except those related to transportation, packaging, marking, or 
        description of hazardous material) and stated in sections 
        308(b), 1132 (c) and (d), 40101(c), 40103(b), 40106(a), 40108, 
        40109(b), 40113 (a), (c), and (d), 40114(a), 40119, 44501 (a) 
        and (c), 44502 (a)(1), (b), and (c), 44504, 44505, 44507, 
        44508, 44511 through 44513, 44701 through 44716, 44718(c), 
        44721(a), 44901, 44902, 44903 (a) through (c) and (e), 44906, 
        44912, 44935 through 44937, and 44938 (a) and (b), chapter 451, 
        sections 45302, 45303, 46104, 46301 (d) and (h)(2), 46303(c), 
        46304 through 46308, 46310, 46311, and 46313 through 46316, 
        chapter 465, and sections 47504(b) (related to flight 
        procedures), 47508(a), and 48107; and
            ``(B) additional duties and powers prescribed by the 
        Secretary of Transportation before the date of enactment of the 
        Federal Aviation Administration Reform Act of 1995.
    ``(2) In carrying out sections 40119, 44901, 44903 (a) through (c) 
and (e), 44906, 44912, and sections 44935 through 44937, 44938 (a) and 
(b), and 48107 of this title, paragraph (1)(A) does not apply to duties 
and powers
 vested in the Director of Intelligence and Security by section 44931.
    ``(c) Effect of Duties and Powers.--Section 40101(d) applies to 
duties and powers specified in subsection (a)(1). A decision of the 
Administrator in carrying out those duties or powers is 
administratively final.
    ``(d) Establishment of Institute.--There is established within the 
Federal Aviation Administration an institute to conduct civil 
aeromedical research under section 44507 of this title. Such institute 
shall be known as the `Civil Aeromedical Institute'. Research conducted 
by the institute should take appropriate advantage of capabilities of 
other government agencies, universities, or the private sector.
    ``(e) Authorization of Appropriations for Operations.--There are 
authorized to be appropriated to the Administration $4,810,000,000 for 
fiscal year 1996.''.

SEC. 8. TRANSFERS AND INCIDENTAL PROVISIONS.

    (a) Transfer of Functions, Personnel Records, and Accounts.--There 
are transferred to the Administration--
            (1) all functions vested by law in the Federal Aviation 
        Administration of the Department of Transportation or the 
        Administrator of the Federal Aviation Administration, and all 
        functions vested by law in the Secretary of Transportation or 
        the Department of Transportation that are administered through 
        the Federal Aviation Administration;
            (2) the functions of the Department of Transportation or 
        the Federal Aviation Administration of the Department of 
        Transportation that are necessary and appropriate for the 
        performance of the functions transferred by paragraph (1); and
            (3) so much of the personnel, property, records, funds, 
        accounts, and unexpended balances of appropriations, 
        allocations, and other moneys of the Department of 
        Transportation as are employed, used, held, available, or to be 
        made available in connection with the functions transferred by 
        paragraphs (1) and (2).
    (b) Delegation and Exercise of Functions.--The Administrator shall 
exercise all functions transferred by subsection (a) and any other 
function vested in the Federal Aviation Administration or the 
Administrator of the Federal Aviation Administration by any law enacted 
on or after the date of the enactment of this Act. The Administrator 
may from time to time make such provisions as the Administrator 
considers appropriate authorizing the performance by any other officer, 
employee, or office of the Administration of such functions.

SEC. 9. REGULATIONS.

    In the performance of the functions of the Administrator and the 
Administration, the Administrator is authorized to issue, rescind, and 
revise such regulations as are necessary to carry out those functions. 
The issuance of such regulations shall be governed by the provisions of 
chapter 5 of title 5, United States Code. The Administrator shall issue 
a final regulation not later than 18 months after the date of 
initiation of any rulemaking proceeding by the Administration or notify 
the Congress in writing of the reasons for not issuing such regulation.

SEC. 10. DELEGATION.

    Except as otherwise provided in this Act, the Administrator may 
delegate any function to such officers and employees of the 
Administration as the Administrator may designate and may authorize 
such successive redelegations of such functions in the Administration 
as may be necessary or appropriate. No delegation of functions by the 
Administrator under this section or under any other provision of this 
Act shall relieve the Administrator of responsibility for the 
administration of those functions.
SEC. 11. PERSONNEL AND SERVICES.

    (a) Officers and Employees.--In the performance of the functions of 
the Administrator and in addition to the officers provided for by 
section 6, the Administrator is authorized to appoint, transfer, and 
fix the compensation of such officers and employees, including 
attorneys, as may be necessary to carry out the functions of the 
Administrator and the Administration. Except as otherwise provided by 
law, such officers and employees shall be appointed in accordance with 
the civil service laws and compensated in accordance with title 5, 
United States Code.
    (b) Experts and Consultants.--The Administrator is authorized to 
obtain the services of experts and consultants in accordance with 
section 3109 of title 5, United States Code.
    (c) Transportation and Per Diem Expenses.--The Administrator is 
authorized to pay transportation expenses, and per diem in lieu of 
subsistence expenses, in accordance with chapter 57 of title 5, United 
States Code.
    (d) Use of Personnel From Other Agencies.--The Administrator is 
authorized to utilize, on a reimbursable basis, the services of 
personnel of any other Federal agency.
    (e) Voluntary Services.--
            (1) In general.--
                    (A) Conditions for acceptance of certain voluntary 
                services.--The Administrator may accept voluntary and 
                uncompensated services without regard to the provisions 
                of section 1342 of title 31, United States Code, if
                 such services are not be used to displace Federal 
employees employed on a full-time, part-time, or seasonal basis.
                    (B) Other volunteer service.--The Administrator is 
                authorized to accept volunteer service in accordance 
                with the provisions of section 3111 of title 5, United 
                States Code.
            (2) Expenses.--The Administrator is authorized to provide 
        for incidental expenses, including transportation, lodging, and 
        subsistence for volunteers who provide voluntary services under 
        this subsection.
            (3) Administrative concerns.--An individual who provides 
        voluntary services under this subsection shall not be 
        considered a Federal employee for any purpose other than for 
        purposes of chapter 81 of title 5, United States Code, relating 
        to compensation for work injuries, and chapter 171 of title 28, 
        United States Code, relating to tort claims.

SEC. 12. 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, agreements, and transactions with any Federal agency or any 
instrumentality of the United States, any State, territory, or 
possession, or political subdivision thereof, or any person, firm, 
association, corporation, or educational institution, on such terms and 
conditions as the Administrator may consider appropriate. The authority 
of the Administrator to enter into contracts and leases under this 
section shall be to such extent or in such amounts as are provided in 
appropriation Acts.

SEC. 13. BUDGET.

    Each year the Administrator shall prepare a budget for the 
Administration, which shall contain estimates of the financial 
condition and operations of the Administration for the then current and 
ensuing 4 fiscal years, and the actual condition and results of 
operations for the last completed fiscal year. That budget shall be 
submitted to the Office of Management and Budget, under such rules and 
regulations as the President may establish concerning the date of 
submission, the form and content, the classification of data, and the 
manner in which the reports included in the budget shall be prepared 
and presented. The budget submission shall include a statement of 
income and expenses and analysis of the surplus or deficit in the 
Airport and Airway Trust Fund established under section 9502 of the 
Internal Revenue Code of 1986, and any other such supplementary 
information as is necessary or desirable to make known about the 
financial condition and operations of the Administration. The annual 
budget shall be included in the budget submitted by the President 
pursuant to chapter 11 of title 31, United States Code.

SEC. 14. USE OF FACILITIES.

    With the consent of appropriate officials, the Administrator may, 
with or without reimbursement, use the services, equipment, personnel, 
and facilities of any other Federal agency and any other public or 
private agency. The Administrator may also cooperate with appropriate 
officials of other public and private agencies and instrumentalities 
concerning the use of services, equipment, personnel, and facilities. 
The head of each Federal agency shall cooperate with the Administrator 
in making the services, equipment, personnel, and facilities of the 
Federal agency available to the Administrator. The head of a Federal 
agency is authorized, notwithstanding any other provision of law, to 
transfer to or to receive from the Administration, without 
reimbursement, supplies and equipment other than administrative 
supplies or equipment.

SEC. 15. ACQUISITION AND MAINTENANCE OF PROPERTY.

    (a) Acquisition.--The Administrator is authorized--
            (1) to acquire (by purchase, lease, condemnation, or 
        otherwise), construct, improve, repair, operate, and maintain--
                    (A) air traffic control facilities and equipment;
                    (B) research and testing sites and facilities; and
                    (C) such other real and personal property 
                (including office space and patents), or any interest 
                therein, within and outside the continental United 
                States as the Administrator considers necessary;
            (2) to lease to others such real and personal property; and
            (3) to provide by contract or otherwise for eating 
        facilities and other necessary facilities for the welfare of 
        employees of the Administration at the installations of the 
        Administrator, and to purchase and maintain equipment for these 
        facilities.
    (b) Title.--Title to any property or interest therein acquired 
pursuant to this section shall be held by the Government of the United 
States.

SEC. 16. MANAGEMENT ADVISORY COMMITTEE.

    (a) Establishment.--There is established an advisory committee 
which shall be known as the Federal Aviation Management Advisory 
Committee (in this section referred to as the ``Management Advisory 
Committee'').
    (b) Membership.--The Management Advisory Committee shall consist of 
11 members, who shall consist of--
            (1) the Secretary of Transportation or the designee of the 
        Secretary (who shall serve as Chairman);
            (2) the Secretary of Defense or the designee of the 
        Secretary;
            (3) 5 members appointed by the President;
            (4) 2 members, 1 appointed by the majority leader of the 
        Senate and the other appointed by the minority leader of the 
        Senate; and
            (5) 2 members, 1 appointed by the Speaker of the House of 
        Representatives and the other appointed by the minority leader 
        of the House of Representatives.
    (c) Functions.--The Management Advisory Committee shall provide 
advice and counsel to the Administrator on issues which affect or are 
affected by the operations of the Administrator. The Management 
Advisory Committee shall hold quarterly meetings. The Administration 
shall give the Management Advisory Committee access to internal 
documents and personnel of the Administration. The Management Advisory 
Committee shall function as an oversight resource for management, 
policy, spending, and regulatory matters under the jurisdiction of the 
Administration.
    (d) Qualifications.--Members appointed to the Management Advisory 
Committee under this section shall be selected from among individuals 
who are experts in disciplines relevant to the aviation industry and 
who are able collectively to represent a balanced view of the issues 
important to airlines, general aviation, business aviation, airports, 
shippers, industry and Administration employees, aircraft 
manufacturers, and the traveling public.
    (e) Terms of Members.--
            (1) In general.--
                    (A) Presidential appointees.--
                            (i) In general.--Except as provided in 
                        clause (ii), members of the Management Advisory 
                        Committee appointed by the President under 
                        subsection (b)(3) shall be appointed for a term 
                        of 3 years.
                            (ii) Initial presidential appointees.--The 
                        members first appointed by the President under 
                        subsection (b)(3) shall be appointed for terms 
                        of 1, 2, and 3 years (as determined by the 
                        President) so that their terms as members are 
                        staggered.
                    (B) Other appointees.--Members of the Management 
                Advisory Committee appointed under subsections (b)(4) 
                and (b)(5) shall be appointed for a term of 2 years.
            (2) Vacancies.--A vacancy on the Management Advisory 
        Committee shall be filled in the manner in which the original 
        appointment was made and shall be subject to any conditions 
        that applied with respect to the original appointment.
            (3) Filling unexpired term.--An individual chosen to fill a 
        vacancy shall be appointed for the unexpired term of the member 
        replaced.
            (4) Expiration of terms.--The term of a member shall not 
        expire before the date on which the member's successor takes 
        office.
    (f) Travel and Per Diem.--Each member of the Management Advisory 
Committee shall be paid actual travel expenses, and per diem in lieu of 
subsistence expenses when away from his or her usual place of 
residence, in accordance with section 5703 of title 5, United States 
Code.
    (g) Detail of Personnel From the Administration.--The Administrator 
shall make available to the Management Advisory Committee such staff, 
information, and administrative services and assistance as may 
reasonably be required to enable the Management Advisory Committee to 
carry out its responsibilities under this section.

SEC. 17. SELECT PANEL TO REVIEW INNOVATIVE FUNDING MECHANISMS.

    (a) Establishment.--The Administrator shall establish a select 
panel to review and report to Congress regarding innovative financing 
mechanisms for ensuring adequate funding for then existing and future 
aviation infrastructure needs. The financing mechanisms to be reviewed 
shall include loan guarantees, financial partnerships with for-profit 
private sector entities, multiyear appropriations, revolving loan 
funds, mandatory spending authority, authority to borrow, and 
restructured grant programs.
    (b) Appointment of Members.--Not later than 90 days after the date 
of the appointment of the Administrator, the Administrator shall 
appoint members to the panel established under this section. Those 
members shall consist of appropriate Federal Government officials and 
representatives of the aviation industry, Administration employees, the 
financial community, and State and local governments.
    (c) Travel and Per Diem.--Each member of the panel established 
under this section shall be paid actual travel expenses, and per diem 
in lieu of subsistence expenses when away from his or her usual place 
of residence, in accordance with section 5703 of title 5, United States 
Code.
    (d) Report.--Not later than 1 year after the date of the 
appointment of the last member to the panel under subsection (b), the 
panel shall submit to the Congress and the Administration a report on 
the results of the review conducted under this section.
    (e) Termination.--The panel established under this section shall 
terminate on the date that is 30 days after the date of submission of 
the report under subsection (d).

SEC. 18. TRANSFERS OF FUNDS FROM OTHER FEDERAL AGENCIES.

    The Administrator is authorized to accept transfers of available 
funds from other Federal agencies to carry out functions transferred by 
this Act to the Administrator or functions assigned by law to the 
Administrator on or after the date of the enactment of this Act.
SEC. 19. SEAL OF ADMINISTRATION.

    The Administrator shall cause a seal of office to be made for the 
Administration of such design as the Administrator shall approve. 
Judicial notice shall be taken of such seal.

SEC. 20. STATUS OF ADMINISTRATION UNDER CERTAIN LAWS.

    For purposes of section 551(1) of title 5, United States Code, the 
Administration shall be considered an agency.

SEC. 21. SAVINGS PROVISIONS.

    (a) Orders, Regulations, Contracts, and Certificates.--All orders, 
determinations, rules, regulations, permits, contracts, certificates, 
licenses, and privileges that--
            (1) have been issued, made, granted, or allowed to become 
        effective by the President or any Federal agency or official 
        thereof or by a court of competent jurisdiction, on or after 
        the date of the enactment of this Act, in regard to functions 
        which are transferred under this Act to the Administration; and
            (2) are in effect at the time of the effective date of this 
        Act;
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the President, the Administrator, or other authorized officials, by a 
court of competent jurisdiction, or by operation of law.
    (b) Proceedings and Applications.--The provisions of this Act shall 
not affect any proceedings or any application for any license, permit, 
certificate, or financial assistance pending at the time of the 
effective date of this Act. To the extent that they relate to functions 
so transferred, those proceedings and applications shall be continued. 
Orders shall be issued in such proceedings, appeals shall be taken 
therefrom, and payments shall be made pursuant to such orders, as if 
this Act had not been enacted. Orders issued in any such proceedings 
shall continue in effect until modified, terminated, superseded, or 
revoked by a duly authorized official, by a court of competent 
jurisdiction, or by operation of law. Nothing in this subsection shall 
be deemed to prohibit the discontinuance or modification of any such 
proceeding under the same terms and conditions and to the extent that 
such proceeding could have been discontinued or modified if this Act 
had not been enacted.
    (c) Suits.--
            (1) In general.--The provisions of this Act shall not 
        affect suits commenced prior to the effective date of this Act.
            (2) Continuation of proceedings.--In all suits referred to 
        in paragraph (1), proceedings shall be had, appeals taken, and 
        judgments rendered in the same manner and effect as if this Act 
        had not been enacted.
    (d) Administrative Actions Relating to Promulgation of 
Regulations.--Any administrative action relating to the preparation or 
promulgation of a regulation by the Federal Aviation Administration of 
the Department of Transportation relating to a function transferred 
under this Act may be continued by the Administration with the same 
effect as if this Act had not been enacted.
    (e) Officers.--In any case involving 1 or more officers required by 
this Act to be appointed by and with the advice and consent of the 
Senate who have not entered upon office on the effective date of this 
Act, the President may designate any officer whose appointment was 
required to be made by and with the advice and consent of the Senate 
and who was such an officer immediately prior to the effective date of 
this Act, to act in such office until the office is filled as provided 
in this Act. While so acting, any such individual shall receive 
compensation at the rates provided by this Act for the office in which 
that individual acts.

SEC. 22. LAWS AND REGULATIONS.

    Except to the extent otherwise provided in this Act, all laws 
(including rules and regulations) in effect and applicable to the 
Federal Aviation Administration of the Department of Transportation and 
to the Administrator of that Administration on the date immediately 
preceding the effective date of this Act shall, on and after such 
effective date, be applicable to the Federal Aviation Administration 
and the Administrator established by this Act, until that law is 
repealed or otherwise modified or amended.
SEC. 23. PILOT PROGRAM FOR PROCUREMENT REFORM.

    (a) Pilot Program.--The Administrator shall conduct a pilot program 
under which a trial acquisition management system is used to procure 
goods and services by the Administration.
    (b) Exemption From Procurement Laws.--
            (1) In general.--Subject to paragraph (2), in carrying out 
        the trial acquisition management system used under the pilot 
        program, the Administrator may waive--
                    (A) title III of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 251 
                through 266);
                    (B) the Office of Federal Procurement Policy Act 
                (41 U.S.C. 401 et seq.);
                    (C) sections 8, 9, and 15 of the Small Business Act 
                (15 U.S.C. 637, 638, and 644);
                    (D) any provision of law that, pursuant to section 
                34 of the Office of Federal Procurement Policy Act (41 
                U.S.C. 430), is listed in the Federal Acquisition 
                Regulation as being inapplicable--
                            (i) to contracts for the procurement of 
                        commercial items; or
                            (ii) in the case of a subcontract under the 
                        pilot program, to subcontracts for the 
                        procurement of commercial items;
                    (E) the Federal Acquisition Streamlining Act of 
                1994 (Public Law 103-355);
                    (F) the Brooks Automatic Data Processing Act 
                (section 111 of the Federal Property and Administrative 
                Services Act of 1949; 40 U.S.C. 759); and
                    (G) the Federal Acquisition Regulation and any law 
                that is not listed in subparagraphs (A) through (F) 
                providing authority to promulgate regulations in the 
                Federal Acquisition Regulation.
            (2) Effective date.--The Administrator may not waive the 
        laws referred to in paragraph (1) until the expiration of the 
        90-day period referred to in subsection (d)(2).
    (c) Development of Trial Acquisition Management System.--Not later 
than 2 years after the effective date of this Act, the Administrator 
shall develop a trial acquisition management system for use in the 
pilot program under subsection (a). In developing the trial system, the 
Administrator shall ensure that the benefits of competition, efficient 
management, and oversight of the acquisition process are attained.
    (d) Notice to Congress.--
            (1) In general.--Upon completion of the development of the 
        trial acquisition management system, the Administrator shall 
        submit a comprehensive plan describing the trial acquisition 
        management system to the Congress, together with all then 
        existing or proposed rules or regulations relevant to the 
        system.
            (2) Date of implementation.--The Administrator may begin to 
        implement the trial acquisition management system only after 
        the expiration of the 90-day period that begins on the date on 
        which the plan is submitted to the Congress under paragraph 
        (1).
    (e) Termination.--On October 1, 2002, authority for the trial 
acquisition management system under this section shall terminate, and 
acquisitions of the Administration shall become subject to all 
otherwise applicable acquisition laws (including regulations).

SEC. 24. PILOT PROGRAM FOR PERSONNEL MANAGEMENT REFORM.

    (a) Pilot Program.--The Administrator shall conduct a pilot program 
under which a trial personnel management system is used for the 
management, compensation, and advancement of Administration employees.
    (b) Exemption From Certain Provisions of Title 5, United States 
Code.--
            (1) In general.--Except as otherwise provided in this 
        section, under the pilot program, the Administrator may waive 
        the applicability of parts II and III of title 5, United States 
        Code.
            (2) Effective date.--The waiver under paragraph (1) shall 
        not take effect until the expiration of the applicable period 
        specified in subsection (d)(2).
    (c) Development of Trial Personnel Management System.--Not later 
than 2 years after the effective date of this Act, the Administrator 
shall develop a trial personnel management system for use in the pilot 
program under subsection (a). In developing the trial system, the 
Administrator shall--
            (1) consult with appropriate representatives of labor 
        organizations who are authorized to engage in collective 
        bargaining under chapter 71 of title 5, United States Code, 
        with respect to the employees of the Administration;
            (2) consider the suggestions or concerns of the 
        representatives referred to in paragraph (1);
            (3) emphasize a system design that will relieve staffing 
        difficulties at those facilities of the Administration that the 
        Administrator considers to be--
                    (A) critical to the National Airspace System;
                    (B) chronically understaffed; or
                    (C) located in a remote or high-cost location; and
            (4) ensure that--
                    (A) the benefits of a merit-based system are 
                preserved; and
                    (B) the trial system provides for training of 
                employees, as well as an adverse action procedure in 
                cases in which performance is unacceptable.
    (d) Notice to Congress.--
            (1) In general.--Upon completion of the development of the 
        trial personnel management system, the Administrator shall 
        submit a comprehensive plan describing the trial personnel 
        management system to the Congress, together with all then 
        existing or proposed rules or regulations relevant to the 
        system.
            (2) Date of implementation.--The Administrator may begin to 
        implement the trial personnel management system only after the 
        later of--
                    (A) the expiration of the 90-day period that begins 
                on the date on which the plan is submitted to the 
                Congress under paragraph (1); or
                    (B) the expiration of the 2-year period beginning 
                on the effective date of this Act.
    (e) Employee Rights and Benefits.--The enactment of this section 
shall not result in the exemption of employees of the Administration 
from any of the following provisions of title 5, United States Code:
            (1) Chapter 63 (relating to leave).
            (2) Chapter 71 (relating to labor-management relations).
            (3) Chapter 73 (relating to suitability, security, and 
        conduct).
            (4) Chapter 81 (relating to compensation for work 
        injuries).
            (5) Chapter 83 (relating to retirement).
            (6) Chapter 84 (relating to the Federal Employees' 
        Retirement System).
            (7) Chapter 87 (relating to life insurance).
            (8) Chapter 89 (relating to health insurance).
    (f) Employee Protections.--Employment rights, wages, and benefits 
of employees of the Administration shall not be adversely affected by 
reason of the enactment of this section, except for unacceptable 
performance or by reason of a reduction in force or reorganization, 
during the period commencing on the effective date of this Act and 
ending on the date determined under subsection (b)(2).
    (g) Collective-Bargaining Agreements.--All collective-bargaining 
agreements covering employees of the Administration that are in effect 
on the effective date of this Act shall remain in effect until their 
normal expiration date, unless the Administrator and the exclusive 
bargaining representative agree to the contrary.
    (h) Termination.--On October 1, 2002, authority for the trial 
personnel management system under this section shall terminate, and 
employees of the Administration shall become subject to all provisions 
of parts II and III of title 5, United States Code.

SEC. 25. EVALUATION AND REPORT ON PILOT PROGRAMS.

    Not later than 120 days before the termination of authority for the 
trial acquisition and personnel management systems authorized under 
sections 23 and 24, the Federal Aviation Management Advisory Committee 
established under section 16 shall prepare and submit to the 
Administrator and to the Congress a report evaluating the results of 
the pilot programs. The report shall fully discuss those elements of 
the programs that the Management Advisory Committee determines to be 
effective and those that the Management Advisory Committee determines 
were not successful. In the report, the Management Advisory Committee 
shall make recommendations with respect to extending, modifying, or 
terminating the acquisition and personnel management systems 
established under the pilot programs.

SEC. 26. AMENDMENT TO INSPECTOR GENERAL ACT OF 1978.

    Section 11 of the Inspector General Act of 1978 (5 U.S.C. App.) is 
amended--
            (1) in paragraph (1) by striking ``or Small Business,'' and 
        inserting ``Small Business, Federal Aviation Administration,''; 
        and
            (2) in paragraph (2) by inserting ``the Federal Aviation 
        Administration,'' after ``United States Information Agency,''.

SEC. 27. AMENDMENTS TO EXECUTIVE SCHEDULE.

    (a) Deputy Administrator.--Section 5314 of title 5, United States 
Code, is amended by adding at the end the following:
            ``Deputy Administrator, Federal Aviation Administration.''.
    (b) Assistant Administrators; Chief Counsel.--Section 5315 of title 
5, United States Code, is amended by striking ``Deputy Administrator, 
Federal Aviation Administration.'' and inserting the following:
            ``Assistant Administrators, Federal Aviation Administration 
        (8).
            ``Chief Counsel, Federal Aviation Administration.
            ``Chief Financial Officer, Federal Aviation 
        Administration.''.
    (c) Inspector General.--Section 5316 of title 5, United States 
Code, is amended by adding at the end of the following:
            ``Inspector General, Federal Aviation Administration.''.

SEC. 28. EFFECTIVE DATE.

    The provisions of this Act and the amendments made by this Act 
shall take effect on the date that is 180 days after the date of the 
enactment of this Act.
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