[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1968 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 1968

 To amend title 49, United States Code, to authorize the Secretary of 
 Transportation to implement a pilot program to improve access to the 
  national transportation system for small communities, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 22, 1998

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

_______________________________________________________________________

                                 A BILL


 
 To amend title 49, United States Code, to authorize the Secretary of 
 Transportation to implement a pilot program to improve access to the 
  national transportation system for small communities, 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 ``Air Service Restoration Act''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) a national transportation system providing safe, high 
        quality service to all areas of the United States is essential 
        to interstate commerce and the economic well-being of cities 
        and towns throughout the United States;
            (2) taxpayers throughout the United States have supported 
        and helped to fund the United States aviation infrastructure 
        and have a right to expect that aviation services will be 
        provided in an equitable and fair manner to every region of the 
        country;
            (3) some communities have not benefited from airline 
        deregulation and access to essential airports and air services 
        has been limited;
            (4) air service to a number of small communities has 
        suffered since deregulation;
            (5) studies by the Department of Transportation have 
        documented that, since the airline industry was deregulated in 
        1978--
                    (A) 34 small communities have lost service and many 
                small communities have had jet aircraft service 
                replaced by turboprop aircraft service;
                    (B) out of a total of 320 small communities, the 
                number of small communities being served by major air 
carriers declined from 213 in 1978 to 33 in 1995;
                    (C) the number of small communities receiving 
                service to only one major hub airport increased from 79 
                to 1978 to 134 in 1995; and
                    (D) the number of small communities receiving 
                multiple-carrier service decreased from 136 in 1978 to 
                122 in 1995; and
            (6) improving air service to small and medium-sized 
        communities that have not benefited from fare reductions and 
        improved service since deregulation will likely entail a range 
        of Federal, State, regional, local, and private sector 
        initiatives.

SEC. 3. PURPOSE.

    The purpose of this Act is to facilitate, through a pilot program, 
incentives and projects that will help communities to improve their 
access to the essential airport facilities of the national air 
transportation system through public-private partnerships and to 
identify and establish ways to overcome the unique policy, economic, 
geographic, and marketplace factors that may inhibit the availability 
of quality, affordable air service to small communities.

SEC. 4. ESTABLISHMENT OF SMALL COMMUNITY AVIATION DEVELOPMENT.

    Section 102 of title 49, United States Code, is amended by adding 
at the end thereof the following:
    ``(g) Small Community Air Service Development Office.--
            ``(1) Establishment.--The Secretary shall establish within 
        the Department of Transportation an Office of Aviation 
        Development. The Office shall be headed by a Director, 
        designated by the Secretary.
            ``(2) Functions.--The Director shall--
                    ``(A) function as a facilitator between small 
                communities and air carriers;
                    ``(B) carry out section 41743 of this title;
                    ``(C) carry out the airline service restoration 
                program under subchapter III of chapter 417 of this 
                title;
                    ``(D) ensure that the Bureau of Transportation 
                Statistics collects data on passenger information to 
                assess the service needs of small communities;
                    ``(E) work with and coordinate efforts with other 
                Federal, State, and local agencies to increase the 
                viability of service to small communities and the 
                creation of aviation development zones; and
                    ``(F) provide policy recommendations to the 
                Secretary and the Congress that will ensure that small 
                communities have access to quality, affordable air 
                transportation services.
          ``(3) Reports.--The Director shall provide an annual report 
        to the Secretary and the Congress be ginning in 1999 that--
                    ``(A) analyzes the availability of air 
                transportation services in small communities, 
                including, but not limited to, an assessment of the air 
                fares charged for air transportation services in small 
                communities compared to air fares charged for air 
                transportation services in larger metropolitan areas 
                and an assessment of the levels of service, measured by 
                types of aircraft used, the availability of seats, and 
                scheduling of flights provided to small communities;
                    ``(B) identifies the policy, economic, geographic 
                and marketplace factors that inhibit the availability 
                of quality, affordable air transportation services to 
                small communities; and
                    ``(C) provides policy recommendations to address 
                the policy, economic, geographic, and marketplace 
                factors inhibiting the availability of quality, 
                affordable air transportation services to small 
                communities.''.

SEC. 5. COMMUNITY-CARRIER AIR SERVICE PROGRAM.

    (a) In General.--Subchapter II of title 49, United States Code, is 
amended by adding at the end thereof the following:
``Sec. 41743. Air service program for small communities
    ``(a) Communities Program.--Under advisory guidelines prescribed by 
the Secretary of Transportation, a small community or a consortia of 
small communities or a State may develop an assessment of its air 
service requirements, in such form as the Director of the Office of 
Aviation Development may require, and submit the assessment and service 
proposal to the Office.
    ``(b) Selection of Participants.--In selecting community programs 
for participation in the communities program under subsection (a), the 
Director shall apply criteria, including geographical diversity and the 
presentation of unique circumstances, that will demonstrate the 
feasibility of the program.
    ``(c) Carriers Program.--The Director shall invite part 121 air 
carriers and regional/commuter carriers (as such terms are defined in 
section 41715(d) of this title) to offer service proposals in response 
to, or in conjunction with, community aircraft assessments submitted 
to the office under subsection (a). A service proposal under this 
paragraph shall include--
            ``(1) an assessment of potential daily passenger traffic, 
        revenues, and costs necessary for the carrier to offer the 
        service;
            ``(2) a forecast of the minimum percentage of that traffic 
        the carrier would require the community to garner in order for 
        the carrier to start up and maintain the service; and
            ``(3) the costs and benefits of providing jet service by 
        regional or other jet aircraft.
    ``(d) Office Support Function.--The Director shall work with small 
communities and air carriers, taking into account their proposals and 
needs, to facilitate the initiation of service. The Director--
            ``(1) may work with communities to develop innovative means 
        and incentives for the initiation of service;
            ``(2) may obligate funds available to carry out this 
        subchapter to make up the difference between the carrier's 
        forecast and the community's ability to generate the necessary 
        percentage of traffic;
            ``(3) shall continue to work with both the carriers and the 
        communities to develop a combination of community incentives 
        and carrier service levels that--
                    ``(A) are acceptable to communities and carriers; 
                and
                    ``(B) do not conflict with other Federal or State 
                programs to facilitate air transportation to the 
                communities;
            ``(4) may designate an airport in the program as an Air 
        Service Development Zone and work with the community on means 
        to attract business to the area surrounding the airport, to 
        develop land use options for the area, and provide data, 
        working with the Department of Commerce and other agencies; and
            ``(5) may take such other action under subchapter III of 
        this chapter as may be appropriate.
    ``(e) Limitations.--
            ``(1) Community support.--The Director may not provide 
        financial assistance under subsection (c)(2) to any community 
        unless the Director determines that--
                    ``(A) a public-private partnership exists at the 
                community level to carry out the community's proposal;
                    ``(B) the community will make a substantial 
                financial contribution that is appropriate for that 
                community's resources;
                    ``(C) the community has established an open process 
                for soliciting air service proposals; and
                    ``(D) the community will accord similar benefits to 
                air carriers that are similarly situated.
            ``(2) Amount.--The Director may not provide financial 
        assistance under subsection (d)(2) to any community in excess 
        of the lesser of--
                    ``(A) up to 75 percent of the financial 
                contribution made by the community; or
                    ``(B) $500,000 per year.
    ``(f) Report.--The Director shall report through the Secretary to 
the Congress annually on the progress made under this section during 
the preceding year in expanding commercial aviation service to smaller 
communities.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 417 of 
such title is amended by inserting after the item relating to section 
41742 the following:

``41743. Air service program for small communities.''.
    (c) Waiver of Local Contribution.--Section 41736(b) of title 49, 
United States Code, is amended by inserting after paragraph (4) the 
following:
``Paragraph (4) does not apply to any community approved for service 
under this section during the period beginning October 1, 1991, and 
ending December 31, 1997.''.

SEC. 6. AIRLINE SERVICE RESTORATION PILOT PROGRAM.

    (a) In General.--Chapter 417 of title 49, United States Code, is 
amended by adding at the end thereof the following:

             ``subchapter iii--airline service restoration
``41761. Pilot program project authority.
``41762. Assistance to communities for service.
``41763. Additional authority.
``41764. Air traffic control services pilot program.
``Sec. 41761. Pilot program project authority
    ``(a) In General.--The Director of the Office of Aviation 
Development shall establish a pilot program--
            ``(1) to assist communities and States with inadequate 
        access to the national transportation system to improve their 
        access to that system; and
            ``(2) to facilitate better link-ups to support the improved 
        access.
    ``(b) Project Authority.--Under the pilot program established 
pursuant to subsection (a), the Director may--
            ``(1) provide financial assistance by way of grants to 
        small communities under section 41743; and
            ``(2) take such other action as may be appropriate.
    ``(c) Other Action.--Under the pilot program established pursuant 
to subsection (a), the Director may facilitate service by--
            ``(1) working with airports and air carriers to ensure that 
        appropriate facilities are made available at essential 
        airports;
            ``(2) requiring interline or joint-fare agreements between 
        air carriers for domestic United States service if necessary to 
        facilitate access to essential facilities for participants in 
        the program subject to the right of a carrier being required to 
        enter into such agreements to impose reasonable safety, 
        service, and other obligations on the potential partner;
            ``(3) collecting data on air carrier service to small 
        communities; and
            ``(4) providing policy recommendations to the Secretary to 
        stimulate air service and competition to small communities.
``Sec. 41762. Assistance to communities for service
    ``(a) In General.--Financial assistance provided under section 
41743 during any fiscal year as part of the pilot program established 
under section 41761(a) shall be implemented for not more than--
            (1) 4 communities within any State at any given time; and
            (2) 40 communities in the entire program at any time.
For purposes of this subsection, a consortium of communities shall be 
treated as a single community.
    ``(b) Eligibility.--In order to participate in a pilot project 
under this subchapter, a State, community, or group of communities 
shall apply to the Secretary in such form and at such time, and shall 
supply such information, as the Secretary may require, and shall 
demonstrate to the satisfaction of the Secretary that--
            ``(1) the applicant has an identifiable need for access, or 
        improved access, to the national air transportation system that 
        would benefit the public;
            ``(2) the pilot project will provide material benefits to a 
        broad section of the travelling public, businesses, educational 
        institutions, and other enterprises whose access to the 
        national air transportation system is limited;
            ``(3) the pilot project will not impede competition; and
            ``(4) the applicant has established, or will establish, 
        public-private partnerships in connection with the pilot 
        project to facilitate service to the public.
    ``(c) Coordination With Subchapter II.--The Secretary shall carry 
out this subchapter in such a manner as to complement action taken 
under subchapter II of this chapter. To the extent the Secretary 
determines to be appropriate, the Secretary may adopt criteria for 
implementation of this subchapter that are the same as, or similar to, 
the criteria developed under subchapter II for determining which 
airports are eligible under that subchapter. The Secretary shall also, 
to the extent possible, provide incentives where no direct, viable, and 
feasible alternative service exists, taking into account geographical 
diversity and appropriate market definitions.
    ``(d) Maximization of Participation.--The Secretary shall structure 
the program established pursuant to section 41761(a) in a way designed 
to--
          ``(1) permit the participation of the maximum feasible number 
        of communities and States over a 5-year period by limiting the 
        number of years of participation or otherwise; and
            ``(2) obtain the greatest possible leverage from the 
        financial resources available to the Secretary and the 
        applicant by--
                    ``(A) progressively decreasing, on a project-by-
                project basis, any Federal financial incentives 
                provided under this chapter over the 5-year period; and
                    ``(B) terminating as early as feasible Federal 
                financial incentives for any project determined by the 
                Secretary after its implementation to be--
                            ``(i) viable without further support under 
                        this subchapter; or
                            ``(ii) failing to meet the purposes of this 
                        chapter or criteria established by the 
                        Secretary under the pilot program.
    ``(e) Success Bonus.--If Federal financial incentives to a 
community are terminated under subsection (d)(2)(B) because of the 
success of the program in that community, then that community may 
receive a one-time incentive grant to ensure the continued success of 
that program.
    ``(f) Program To Terminate in 5 Years.--No new financial assistance 
may be provided under this subchapter for any fiscal year beginning 
more than 5 years after the date of enactment of the Air Service 
Restoration Act.
``Sec. 41763. Additional authority
    ``In carrying out this chapter, the Secretary--
            ``(1) may provide assistance to States and communities in 
        the design and application phase of any project under this 
chapter, and oversee the implementation of any such project;
            ``(2) may assist States and communities in putting together 
        projects under this chapter to utilize private sector 
        resources, other Federal resources, or a combination of public 
        and private resources;
            ``(3) may accord priority to service by jet air-craft;
            ``(4) take such action as may be necessary to ensure that 
        financial resources, facilities, and administrative 
        arrangements made under this chapter are used to carry out the 
        purposes of the Air Service Restoration Act; and
            ``(5) shall work with the Federal Aviation Administration 
        on airport and air traffic control needs of communities in 
        program.
Sec. 41764. Air traffic control services pilot program
    ``(a) In General.--To further facilitate the use of, and improve 
the safety at, small airports, the Administrator of the Federal 
Aviation Administration shall establish a pilot program to contract for 
Level I air traffic control at 20 facilities not eligible for 
participation in the Federal Contract Tower Program.
    ``(b) Program Components.--In carrying out the pilot program 
established under subsection (a), the Administrator may--
            ``(1) utilize current, actual, site-specific data, forecast 
        estimates, or airport system plan data provided by a facility 
        owner or operator;
            ``(2) take into consideration unique aviation safety, 
        weather, strategic national interest, disaster relief, medical 
        and other emergency management relief services, status of 
        regional airline service, and related factors at the facility;
            ``(3) approve for participation any facility willing to 
        fund a pro rata share of the operating costs used by the 
        Federal Aviation Administration to calculate, and, as 
        necessary, a 1:1 benefit-to-cost ratio, as required for 
        eligibility under the Federal Contract Tower Program; and
            ``(4) approve for participation any facility willing to 
        fund a pro rata share of construction used by the Federal 
        Aviation Administration to calculate, and, as necessary, a 1:1 
        benefit-to-cost ratio, as required for eligibility under the 
        Federal Contract Tower Program.
    ``(c) Report.--One year before the pilot program established under 
subsection (a) terminates, the Administrator shall report to the 
Congress on the effectiveness of the program, with particular emphasis 
on the safety and economic benefits provided to program participants 
and the national air transportation system.''.
    (b) Clerical Amendment.--The chapter analysis for chapter 417 of 
title 49, United States Code, is amended by adding at the end thereof 
the following:

             ``subchapter iii--airline service restoration
``41761. Pilot programs.
``41762. Financial assistance to States.
``41763. Additional authority.
``41764. Air traffic control services pilot program.''.

 SEC. 7. FUNDING AUTHORITY.

    (a) In General.--The Secretary of Transportation may obligate not 
more than $20,000,000 for each of fiscal years 1999 through 2002 to 
carry out subchapter III of chapter 417 of title 49, United States 
Code, out of funds otherwise available for aviation programs other than 
funds appropriated, obligated, or made available to carry out 
subchapter II of such chapter.
    (b) Success Bonus.--If the Secretary determines that the program 
carried out under such subchapter III is successful in providing 
enhanced air carrier service to small communities, then the Secretary 
may obligate an additional amount, not in excess of $5,000,000, for 
each of fiscal years 2001 and 2002 to carry out that subchapter out of 
such funds.

SEC. 8. JOINT FARES AND INTERLINE AGREEMENTS.

    (a) In General.--Subchapter I of chapter 417 of title 49, United 
States Code, is amended by adding at the end thereof the following:
``Sec. 41716. Joint fares and interline agreements for domestic 
              transportation
    ``(a) In General.--In order to more effectively facilitate service 
to small communities, the Secretary of Transportation may, if 
necessary, require an air carrier that serves an essential airport 
facility in the United States and an air carrier that offers service in 
an under-served market within the United States to enter into an 
agreement with a qualifying air carrier that files a request with the 
Secretary, in such form and manner and at such time as the Secretary 
may require.
    ``(b) Secretary May Compel Joint Fare Structure.--If the Secretary 
determines that it is necessary in order to facilitate service to small 
communities, the Secretary may require any air carrier to enter into a 
joint-fare or interline agreement with any qualifying air carrier that 
serves an under-served market to facilitate air transportation.
    ``(c) Application Limited to Service to Communities Receiving DOT 
Assistance.--The Secretary may not require an air carrier to enter into 
an agreement under subsection (a) or (b) except to the extent 
determined by the Secretary to be necessary to the provision of air 
service to a community receiving financial assistance under section 
41761. Nothing in this section provides authority for the Secretary to 
establish air fares for service to which this section applies.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualifying air carrier.--The term `qualifying air 
        carrier' means an air carrier that operates pursuant to a 
        certificate of public convenience and necessity under chapter 
        411 of this title.
            ``(2) Under-served market.--The term `under-served market' 
        means a commercial service airport that is a nonhub airport (as 
        defined in section 41731(4) of this title), a small hub airport 
        (as defined in section 41731(5) of this title), or an airport 
        that is smaller than a nonhub or small hub airport.
            ``(3) Essential airport facility.--The term `essential 
        airport facility' means a hub airport (as defined in section 
        41731(a)(3) of this title).''.
    (b) Clerical Amendment.--The chapter analysis for chapter 417 of 
title 49, United States Code, is amended by inserting after the item 
relating to section 41715 the following:

``41716. Joint fares and interline agreements for domestic 
                            transportation.''.

SEC. 9. REVITALIZATION OF AIR SERVICE TO RURAL AREAS.

    Section 40101(a) of title 49, United States Code, is amended by 
adding at the end thereof the following:
            ``(16) ensuring that consumers in all regions of the United 
        States, including those in small communities and rural and 
        remote areas, have access to affordable, regularly scheduled 
        air service.
            ``(17) ensuring that any slots given to air carriers to 
        provide small community air service are withdrawn if the 
        carrier fails to provide the service.''.

SEC. 10. MARKETING PRACTICES.

    Section 41712 of title 49, United States Code, is amended by--
            (1) inserting ``(a) In General.--'' before ``On''; and
            (2) adding at the end thereof the following:
    ``(b) Marketing Practices That Adversely Affect Service to Small or 
Medium Communities.--Within 180 days after the date of enactment of the 
Air Service Restoration Act, the Secretary shall review the marketing 
practices of air carriers that may inhibit the availability of quality, 
affordable air transportation services to small and medium-sized 
communities, including--
            ``(1) marketing arrangements between airlines and travel 
        agents;
            ``(2) code-sharing partnerships;
            ``(3) computer reservation system displays;
            ``(4) gate arrangements at airports; and
            ``(5) any other marketing practice that may have the same 
        effect.
    ``(c) Regulations.--If the Secretary finds, after conducting the 
review required by subsection (b), that marketing practices inhibit the 
availability of such service to such communities, then, after public 
notice and an opportunity for a hearing, the Secretary shall promulgate 
regulations that address the problem.''.
                                 <all>