[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2279 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2279

To amend title 49, United States Code, to authorize the programs of the 
Federal Aviation Administration for fiscal years 1999, 2000, 2001, and 
                     2002, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              July 9, 1998

Mr. McCain (for himself and Mr. Gorton) 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 programs of the 
Federal Aviation Administration for fiscal years 1999, 2000, 2001, and 
                     2002, 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 SECTIONS.

    (a) Short Title.--This Act may be cited as the ``National Air 
Transportation System Improvement Act of 1998''.
    (b) Table of Sections.--The table of sections for this Act is as 
follows:

Sec. 1. Short title; table of sections.
Sec. 2. Amendments to title 49, United States Code.
                        Title I--AUTHORIZATIONS

Sec. 101. Federal Aviation Administration operations.
Sec. 102. Air navigation facilities and equipment.
Sec. 103. Airport planning and development and noise compatibility 
                            planning and programs.
Sec. 104. Reprogramming notification requirement.
            TITLE II--AIRPORT IMPROVEMENT PROGRAM AMENDMENTS

Sec. 201. Removal of the cap on discretionary fund.
Sec. 202. Innovative use of airport grant funds.
Sec. 203. Matching share.
Sec. 204. Increase in apportionment for noise compatibility planning 
                            and programs.
Sec. 205. Technical amendments.
Sec. 206. Repeal of period of applicability.
Sec. 207. Report on efforts to implement capacity enhancements.
Sec. 208. Prioritization of discretionary projects.
Sec. 209. Public notice before grant assurance requirement waived.
Sec. 210. Definition of public aircraft.
Sec. 211. Terminal development costs.
                 Title III--AMENDMENTS TO AVIATION LAW

Sec. 301. Severable services contracts for periods crossing fiscal 
                            years.
Sec. 302. Foreign carriers eligible for waiver under airport noise and 
                            capacity act.
Sec. 303. Government and industry consortia.
Sec. 304. Implementation of Article 83 Bis of the Chicago Convention.
Sec. 305. Foreign aviation services authority.
Sec. 306. Flexibility to perform criminal history record checks; 
                            technical amendments to Pilot Records 
                            Improvement Act.
Sec. 307. Aviation insurance program amendments.
Sec. 308. Technical corrections to civil penalty provisions.
                TITLE IV--TITLE 49 TECHNICAL CORRECTIONS

Sec. 401. Restatement of 49 U.S.C. 106(g).
Sec. 402. Restatement of 49 U.S.C. 44909.
Sec. 403. Typographical errors.
                         Title V--MISCELLANEOUS

Sec. 501. Oversight of FAA response to year 2000 problem as it affects 
                            the aviation industry.
Sec. 502. Cargo collision avoidance systems deadline.
Sec. 503. Runway safety areas.
Sec. 504. Airplane emergency locators.
Sec. 505. Counterfeit aircraft parts.
Sec. 506. FAA may fine unruly passengers.
Sec. 507. Higher international standards for handicapped access.
Sec. 508. Conveyances of United States Government land.
Sec. 509. Flight operations quality assurance rules.
Sec. 510. Wide area augmentation system.
Sec. 511. Regulation of Alaska air guides.
Sec. 512. Application of FAA regulations.
Sec. 513. Advanced qualification program.
Sec. 514. Independent validation of FAA costs and allocations.
Sec. 515. Whistleblower protection for FAA employees.
Sec. 516. Report on modernization of oceanic ATC system.
Sec. 517. Report on air transportation oversight system.
                TITLE VI--AVIATION COMPETITION PROMOTION

Sec. 601. Purpose.
Sec. 602. Establishment of small community aviation development 
                            program.
Sec. 603. Community-carrier air service program.
Sec. 604. Funding authority.
Sec. 605. Marketing practices.
Sec. 606. Slot exemptions for nonstop regional jet service.
Sec. 607. Secretary shall grant exemptions to perimeter rule.
Sec. 608. Additional slots at Chicago's O'hare Airport.
Sec. 609. Consumer notification of e-ticket expiration dates.
                      TITLE VII--PARK OVERFLIGHTS

Sec. 701. Findings.
Sec. 702. Air tour management plans for national parks.
Sec. 703. Advisory group.
Sec. 704. Exemption.
Sec. 705. Overflight fee report.
               TITLE VIII--AVIATION TRUST FUND AMENDMENTS

Sec. 801. Amendments to the Airport and Airway Trust Fund.

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

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

                        TITLE I--AUTHORIZATIONS

SEC. 101. FEDERAL AVIATION ADMINISTRATION OPERATIONS.

    Section 106(k) is amended to read as follows:
    ``(k) Authorization of Appropriations for Operations.--
            ``(1) In general.--There are authorized to be appropriated 
        to the Secretary of Transportation for operations of the 
        Administration $5,631,000,000 for fiscal year 1999, 
        $5,784,000,000 for fiscal year 2000, $5,946,000,000 for fiscal 
        year 2001, and $6,112,000,000 for fiscal year 2002. Of the 
        amounts authorized to be appropriated for fiscal year 1999, not 
        more than $9,100,000 shall be used to support air safety 
        efforts through payment of United States membership 
        obligations, to be paid as soon as practicable.
            ``(2) Authorized expenditures.--Of the amounts appropriated 
        under paragraph (1) $450,000 may be used for wildlife hazard 
        mitigation measures and management of the wildlife strike 
        database of the Federal Aviation Administration.
            ``(3) University consortium.--There are authorized to be 
        appropriated not more than $9,100,000 for the 3 fiscal year 
        period beginning with fiscal year 1999 to support a university 
        consortium established to provide an air safety and security 
        management certificate program, working cooperatively with the 
        Federal Aviation Administration and United States air carriers. 
        Funds authorized under this paragraph--
                    ``(A) may not be used for the construction of a 
                building or other facility; and
                    ``(B) shall be awarded on the basis of open 
                competition.''.

SEC. 102. AIR NAVIGATION FACILITIES AND EQUIPMENT.

    (a) In General.--Section 48101(a) is amended by striking paragraphs 
(1) and (2) and inserting the following:
            ``(1) for fiscal year 1999--
                    ``(A) $222,800,000 for engineering, development, 
                test, and evaluation: en route programs;
                    ``(B) $74,700,000 for engineering, development, 
                test, and evaluation: terminal programs;
                    ``(C) $108,000,000 for engineering, development, 
                test, and evaluation: landing and navigational aids;
                    ``(D) $17,790,000 for engineering, development, 
                test, and evaluation: research, test, and evaluation 
                equipment and facilities programs;
                    ``(E) $391,358,300 for air traffic control 
                facilities and equipment: en route programs;
                    ``(F) $492,315,500 for air traffic control 
                facilities and equipment: terminal programs;
                    ``(G) $38,764,400 for air traffic control 
                facilities and equipment: flight services programs;
                    ``(H) $50,500,000 for air traffic control 
                facilities and equipment: other ATC facilities 
                programs;
                    ``(I) $162,400,000 for non-ATC facilities and 
                equipment programs;
                    ``(J) $14,500,000 for training and equipment 
                facilities programs;
                    ``(K) $280,800,000 for mission support programs;
                    ``(L) $235,210,000 for personnel and related 
                expenses;
            ``(2) $2,189,000,000 for fiscal year 2000;
            ``(3) $2,250,000,000 for fiscal year 2001; and
            ``(4) $2,313,000,000 for fiscal year 2002.''.
    (b) Continuation of ILS Inventory Program.--Section 44502(a)(4)(B) 
is amended--
            (1) by striking ``fiscal years 1995 and 1996'' and 
        inserting ``fiscal year 1999''; and
            (2) by inserting ``under new or existing contracts'' after 
        ``including acquisition''.
    (c) Life-Cycle Cost Estimates.--The Administrator of the Federal 
Aviation Administration shall establish life-cycle cost estimates for 
any air traffic control modernization project the total life-cycle 
costs of which equal or exceed $50,000,000.

SEC. 103. AIRPORT PLANNING AND DEVELOPMENT AND NOISE COMPATIBILITY 
              PLANNING AND PROGRAMS.

    (a) Extension and Authorization.--Section 48103 is amended by--
            (1) striking ``September 30, 1996,'' and inserting 
        ``September 30, 1998,'';
            (2) striking ``and $4,627,000,000'' and inserting 
        ``$3,415,000,000''; and
            (3) striking ``October 1, 1998.'' and inserting ``October 
        1, 1998, $5,825,000,000 for fiscal years ending before October 
        1, 1999, $8,300,000,000 for fiscal years ending before October 
        1, 2000, $10,842,000,000 for fiscal years ending before October 
        1, 2001, and $13,453,000,000 for fiscal years ending before 
        October 1, 2002.''.
    (b) Project Grant Authority.--Section 47104(c) is amended by 
striking ``1998,'' and inserting ``2002,''.

SEC. 104. REPROGRAMMING NOTIFICATION REQUIREMENT.

    Before reprogramming any amounts appropriated under section 106(k), 
48101(a), or 48103 of title 49, United States Code, the Secretary of 
Transportation shall submit a written explanation of the proposed 
reprogramming to the Committee on Commerce, Science, and Transportation 
of the Senate and the Committee on Transportation and Infrastructure of 
the House of Representatives.

            TITLE II--AIRPORT IMPROVEMENT PROGRAM AMENDMENTS

SEC. 201. REMOVAL OF THE CAP ON DISCRETIONARY FUND.

    Section 47115(g) is amended by striking paragraph (4).

SEC. 202. INNOVATIVE USE OF AIRPORT GRANT FUNDS.

    (a) Codification and Improvement of 1996 Program.--Subchapter I of 
chapter 471 is amended by adding at the end thereof the following:
``Sec.  47135. Innovative financing techniques
    ``(a) In General.--The Secretary of Transportation is authorized to 
carry out a demonstration program under which the Secretary may approve 
applications under this subchapter for not more than 20 projects for 
which grants received under the subchapter may be used to implement 
innovative financing techniques.
    ``(b) Purpose.--The purpose of the demonstration program shall be 
to provide information on the use of innovative financing techniques 
for airport development projects.
    ``(c) Limitation--In no case shall the implementation of an 
innovative financing technique under the demonstration program result 
in a direct or indirect guarantee of any airport debt instrument by the 
United States Government.
    ``(d) Innovative Financing Technique Defined.--In this section, the 
term `innovative financing technique' includes methods of financing 
projects that the Secretary determines may be beneficial to airport 
development, including--
            ``(1) payment of interest;
            ``(2) commercial bond insurance and other credit 
        enhancement associated with airport bonds for eligible airport 
        development; and
            ``(3) flexible non-Federal matching requirements.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 471 is 
amended by inserting after the item relating to section 47134 the 
following:

``47135. Innovative financing techniques''.

SEC. 203. MATCHING SHARE.

    Section 47109(a)(2) is amended by inserting ``not more than'' 
before ``90 percent''.

SEC. 204. INCREASE IN APPORTIONMENT FOR NOISE COMPATIBILITY PLANNING 
              AND PROGRAMS.

    Section 47117(e)(1)(A) is amended by striking ``31'' each time it 
appears and substituting ``35''.

SEC. 205. TECHNICAL AMENDMENTS.

    (a) Use of Apportionments for Alaska, Puerto Rico, and Hawaii.--
Section 47114(d)(3) is amended to read as follows:
            ``(3) An amount apportioned under paragraph (2) of this 
        subsection for airports in Alaska, Hawaii, or Puerto Rico may 
        be made available by the Secretary for any public airport in 
        those respective jurisdictions.''.
    (b) Supplemental Apportionment for Alaska.--Section 47114(e) is 
amended--
            (1) by striking ``Alternative'' in the subsection caption 
        and inserting ``Supplemental'';
            (2) in paragraph (1) by--
                    (A) striking ``Instead of apportioning amounts for 
                airports in Alaska under'' and inserting 
                ``Notwithstanding''; and
                    (B) striking ``those airports'' and inserting 
                ``airports in Alaska''; and
            (3) striking paragraph (3) and inserting the following:
            ``(3) An amount apportioned under this subsection may be 
        used for any public airport in Alaska.''.
    (c) Repeal of Apportionment Limitation on Commercial Service 
Airports in Alaska.--Section 47117 is amended by striking subsection 
(f) and redesignating subsections (g) and (h) as subsections (f) and 
(g), respectively.
    (d) Discretionary Fund Definition.--
            (1) Section 47115 is amended--
                    (A) by striking ``25'' in subsection (a) and 
                inserting ``12.5''; and
                    (B) by striking the second sentence in subsection 
                (b).
            (2) Section 47116 is amended--
                    (A) by striking ``75'' in subsection (a) and 
                inserting ``87.5'';
                    (B) by redesignating paragraphs (1) and (2) in 
                subsection (b) as subparagraphs (A) and (B), 
                respectively, and inserting before subparagraph (A), as 
                so redesignated, the following:
            ``(1) one-seventh for grants for projects at small hub 
        airports (as defined in section 41731 of this title); and
            ``(2) the remaining amounts based on the following:''.
    (e) Continuation of Project Funding.--Section 47108 is amended by 
adding at the end thereof the following:
    ``(e) Change in Airport Status.--If the status of a primary airport 
changes to a non-primary airport at a time when a development project 
under a multiyear agreement under subsection (a) is not yet completed, 
the project shall remain eligible for funding from discretionary funds 
under section 47115 of this title at the funding level and under the 
terms provided by the agreement, subject to the availability of 
funds.''.
    (f) Grant Eligibility for Private Reliever Airports.--Section 
47102(17)(B) is amended by--
            (1) striking ``or'' at the end of clause (i) and 
        redesignating clause (ii) as clause (iii); and
            (2) inserting after clause (i) the following:
                    ``(ii) a privately-owned airport that, as a 
                reliever airport, received Federal aid for airport 
                development prior to October 9, 1996, but only if the 
                Administrator issues revised administrative guidance 
                after July 1, 1998, for the designation of reliever 
                airports; or''.
    (g) Reliever Airports Not Eligible for Letters of Intent.--Section 
47110(e)(1) is amended by striking ``or reliever''.
    (h) Passenger Facility Fee Waiver for Certain Class of Carriers or 
for Service to Airports in Isolated Communities.--Section 40117(i) is 
amended--
            (1) by striking ``and'' at the end of paragraph (1);
            (2) by striking ``transportation.'' in paragraph (2)(D) and 
        inserting ``transportation; and''; and
            (3) by adding at the end thereof the following:
            ``(3) may permit a public agency to request that collection 
        of a passenger facility fee be waived for--
                    ``(A) passengers enplaned by any class of air 
                carrier or foreign air carrier if the number of 
                passengers enplaned by the carriers in the class 
                constitutes not more than one percent of the total 
                number of passengers enplaned annually at the airport 
                at which the fee is imposed; or
                    ``(B) passengers enplaned on a flight to an 
                airport--
                            ``(i) that has fewer than 2,500 passenger 
                        boardings each year and receives scheduled 
                        passenger service; or
                            ``(ii) in a community which has a 
                        population of less than 10,000 and is not 
                        connected by a land highway or vehicular way to 
                        the land-connected National Highway System 
                        within a State.''.
    (i) Use of the Word ``Gift'' and Priority for Airports in Surplus 
Property Disposal.--
            (1) Section 47151 is amended--
                    (A) by striking ``give'' in subsection (a) and 
                inserting ``convey to'';
                    (B) by striking ``gift'' in subsection (a)(2) and 
                inserting ``conveyance'';
                    (C) by striking ``gift'' in subsection (b) and 
                inserting ``conveyance''; and
                    (D) by adding at the end thereof the following:
    ``(d) Priority for Public Airports.--Except for requests from 
another Federal agency, a department, agency, or instrumentality of the 
Executive Branch of the United States Government shall give priority to 
a request by a public agency (as defined in section 47102 of this 
title) for surplus property described in subsection (a) of this section 
for use at a public airport.''.
            (2) Section 47152 is amended--
                    (A) by striking ``gifts'' in the section caption 
                and inserting ``conveyances''; and
                    (B) by striking ``gift'' in the first sentence and 
                inserting ``conveyance''.
            (3) The chapter analysis for subchapter 471 is amended by 
        striking the item relating to section 47152 and inserting the 
        following:

``47152. Terms of conveyances''.
            (4) Section 47153(a) is amended--
                    (A) by striking ``gift'' in paragraph (1) and 
                inserting ``conveyance'';
                    (B) by striking ``given'' in paragraph (1)(A) and 
                inserting ``conveyed''; and
                    (C) by striking ``gift'' in paragraph (1)(B) and 
                inserting ``conveyance''.
    (j) Flexibility in Pavement Design Standards.--Section 47114(d) is 
amended by adding at the end thereof the following:
            ``(4) The Secretary may permit the use of State highway 
        specifications for airfield pavement construction using funds 
        made available under this subsection at non-primary airports 
        with runways of 5,000 feet or shorter serving aircraft that do 
        not exceed 60,000 pounds gross weight, if the Secretary 
        determines that--
                    ``(A) safety will not be negatively affected; and
                    ``(B) the life of the pavement will not be shorter 
                than it would be if constructed using Administration 
                standards.
        An airport may not seek funds under this subchapter for runway 
        rehabilitation or reconstruction of any such airfield pavement 
        constructed using State highway specifications for a period of 
        10 years after construction is completed.''.

SEC. 206. REPEAL OF PERIOD OF APPLICABILITY.

    Section 125 of the Federal Aviation Reauthorization Act of 1996 (49 
U.S.C. 47114 note) is repealed.

SEC. 207. REPORT ON EFFORTS TO IMPLEMENT CAPACITY ENHANCEMENTS.

    Within 9 months after the date of enactment of this Act, the 
Secretary of Transportation shall report to the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of Representatives on 
efforts by the Federal Aviation Administration to implement capacity 
enhancements and improvements, such as precision runway monitoring 
systems and the time frame for implementation of such enhancements and 
improvements.

SEC. 208. PRIORITIZATION OF DISCRETIONARY PROJECTS.

    Section 47120 is amended by--
            (1) inserting ``(a) In General.--'' before ``In''; and
            (2) adding at the end thereof the following:
    ``(b) Discretionary Funding To Be Used for Higher Priority 
Projects.--The Administrator of the Federal Aviation Administration 
shall discourage airport sponsors and airports from using discretionary 
funds for lower priority projects by giving lower priority to 
discretionary projects submitted by airport sponsors and airports that 
have used entitlement funds for projects that have a lower priority 
than the projects for which discretionary funds are being requested.''.

SEC. 209. PUBLIC NOTICE BEFORE GRANT ASSURANCE REQUIREMENT WAIVED.

    Notwithstanding any other provision of law to the contrary, the 
Secretary of Transportation may not waive any assurance required under 
section 47107 of title 49, United States Code, unless the Secretary 
provides notice to the public not less than 30 days before issuing any 
such waiver. Nothing in this section shall be construed to authorize 
the Secretary to issue a waiver of any assurance required under that 
section.

SEC. 210. DEFINITION OF PUBLIC AIRCRAFT.

    Section 40102(a)(37)(B)(ii) is amended--
            (1) by striking ``or'' at the end of subclause (I);
            (2) by striking the ``States.'' in subclause (II) and 
        inserting ``States; or''; and
            (3) by adding at the end thereof the following:
                                    ``(III) transporting persons aboard 
                                the aircraft if the aircraft is 
                                operated for the purpose of prisoner 
                                transport.''.

SEC. 211. TERMINAL DEVELOPMENT COSTS.

    Section 40117 is amended by adding at the end thereof the 
following:
    ``(j) Shell of Terminal Building.--In order to enable additional 
air service by an air carrier with less than 50 percent of the 
scheduled passenger traffic at an airport, the Secretary may consider 
the shell of a terminal building (including heating, ventilation, and 
air conditioning) to be an eligible airport-related project under 
subsection (a)(3)(E).''.

                 TITLE III--AMENDMENTS TO AVIATION LAW

SEC. 301. SEVERABLE SERVICES CONTRACTS FOR PERIODS CROSSING FISCAL 
              YEARS.

    (a) Chapter 401 is amended by adding at the end thereof the 
following:
``Sec.  40125. Severable Services Contracts for Periods Crossing Fiscal 
              Years
    ``(a) In General.--The Administrator of the Federal Aviation 
Administration may enter into a contract for procurement of severable 
services for a period that begins in one fiscal year and ends in the 
next fiscal year if (without regard to any option to extend the period 
of the contract) the contract period does not exceed one year.
    ``(b) Obligation of Funds.--Funds made available for a fiscal year 
may be obligated for the total amount of a contract entered into under 
the authority of subsection (a) of this section.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 401 is 
amended by adding at the end thereof the following:

``40125. Severable services contracts for periods crossing fiscal 
                            years''.

SEC. 302. FOREIGN CARRIERS ELIGIBLE FOR WAIVER UNDER AIRPORT NOISE AND 
              CAPACITY ACT.

    The first sentence of section 47528(b)(1) is amended by inserting 
``or foreign air carrier'' after ``air carrier'' the first place it 
appears and after ``carrier'' the first place it appears.

SEC. 303. GOVERNMENT AND INDUSTRY CONSORTIA.

    Section 44903 is amended by adding at the end thereof the 
following:
    ``(f) Government and Industry Consortia.--The Administrator may 
establish at airports such consortia of government and aviation 
industry representatives as the Administrator may designate to provide 
advice on matters related to aviation security and safety. Such 
consortia shall not be considered federal advisory committees for 
purposes of the Federal Advisory Committee Act (5 U.S.C. App.).''.

SEC. 304. IMPLEMENTATION OF ARTICLE 83 BIS OF THE CHICAGO CONVENTION.

    Section 44701 is amended--
            (1) by redesignating subsection (e) as subsection (f); and
            (2) by inserting after subsection (d) the following:
    ``(e) Bilateral Exchanges of Safety Oversight Responsibilities.--
            ``(1) Notwithstanding the provisions of this chapter, and 
        pursuant to Article 83 bis of the Convention on International 
        Civil Aviation, the Administrator may, by a bilateral agreement 
        with the aeronautical authorities of another country, exchange 
        with that country all or part of their respective functions and 
        duties with respect to aircraft described in subparagraphs (A) 
        and (B), under the following articles of the Convention:
                    ``(A) Article 12 (Rules of the Air).
                    ``(B) Article 31 (Certificates of Airworthiness).
                    ``(C) Article 32a (Licenses of Personnel).
            ``(2) The agreement under paragraph (1) may apply to--
                    ``(A) aircraft registered in the United States 
                operated pursuant to an agreement for the lease, 
                charter, or interchange of the aircraft or any similar 
                arrangement by an operator that has its principal place 
                of business or, if it has no such place of business, 
                its permanent residence in another country; or
                    ``(B) aircraft registered in a foreign country 
                operated under an agreement for the lease, charter, or 
                interchange of the aircraft or any similar arrangement 
by an operator that has its principal place of business or, if it has 
no such place of business, its permanent residence in the United 
States.
            ``(3) The Administrator relinquishes responsibility with 
        respect to the functions and duties transferred by the 
        Administrator as specified in the bilateral agreement, under 
        the Articles listed in paragraph (1) of this subsection for 
        United States-registered aircraft transferred abroad as 
        described in subparagraph (A) of that paragraph, and accepts 
        responsibility with respect to the functions and duties under 
        those Articles for aircraft registered abroad that are 
        transferred to the United States as described in subparagraph 
        (B) of that paragraph.
            ``(4) The Administrator may, in the agreement under 
        paragraph (1), predicate the transfer of these functions and 
        duties on any conditions the Administrator deems necessary and 
        prudent.''.

SEC. 305. FOREIGN AVIATION SERVICES AUTHORITY.

    (a) Reciprocal Waiver of Overflight Fees.--Section 45301(a)(1) is 
amended to read as follows:
            ``(1) Air traffic control and related services provided to 
        aircraft that neither take off from, nor land in, the United 
        States, other than military and civilian aircraft of the United 
        States Government or of a foreign government, except that such 
        fees shall not be imposed on overflights operated by citizens 
        of a country contiguous to the United States if--
                    ``(A) both the origin and destination of such 
                flights are within that other country;
                    ``(B) that country exempts similar categories of 
                flights operated by citizens of the United States from 
                such fees; and
                    ``(C) that country exchanges responsibility for air 
                traffic control services with the United States.''.
    (b) Technical Corrections.--Section 45301 is amended--
            (1) by striking ``government.'' in subsection (a)(2) and 
        inserting ``government or to any entity obtaining services 
        outside the United States.'';
            (2) by striking ``directly'' in subsection (b)(1)(B); and
            (3) by striking ``rendered.'' in subsection (b)(1)(B) and 
        inserting ``rendered, including value to the recipient and both 
        direct and indirect costs of overflight-related services, as 
        determined by the Administrator, using generally accepted 
        accounting principles and internationally accepted principles 
        of setting fees for overflight-related services.''.

SEC. 306. FLEXIBILITY TO PERFORM CRIMINAL HISTORY RECORD CHECKS; 
              TECHNICAL AMENDMENTS TO PILOT RECORDS IMPROVEMENT ACT.

    Section 44936 is amended--
            (1) by striking ``subparagraph (C))'' in subsection 
        (a)(1)(B) and inserting ``subparagraph (C), or in the case of 
        passenger, baggage, or property screening at airports, the 
        Administrator decides it is necessary to ensure air 
        transportation security)'';
            (2) by striking ``individual'' in subsection (f)(1)(B)(ii) 
        and inserting ``individual's performance as a pilot''; and
            (3) by inserting ``or from a foreign government or entity 
        that employed the individual'' in subsection (f)(14)(B) after 
        ``exists,''.

SEC. 307. AVIATION INSURANCE PROGRAM AMENDMENTS.

    (a) Reimbursement of Insured Party's Subrogee.--Subsection (a) of 
44309 is amended--
            (1) by striking the subsection caption and the first 
        sentence, and inserting the following:
    ``(a) Losses.--
            ``(1) A person may bring a civil action in a district court 
        of the United States or in the United States Court of Federal 
        Claims against the United States Government when--
                    ``(A) a loss insured under this chapter is in 
                dispute; or
                    ``(B)(i) the person is subrogated to the rights 
                against the United States Government of a party insured 
                under this chapter (other than under subsection 
                44305(b) of this title), under a contract between the 
                person and such insured party; and
                    ``(ii) the person has paid to such insured party, 
                with the approval of the Secretary of Transportation, 
                an amount for a physical damage loss that the Secretary 
                of Transportation has determined is a loss covered 
                under insurance issued under this chapter (other than 
                insurance issued under subsection 44305(b) of this 
                title).''; and
            (2) by resetting the remainder of the subsection as a new 
        paragraph and inserting ``(2)'' before ``A civil action''.
    (b) Extension of Aviation Insurance Program.--Section 44310 is 
amended by striking ``1998.'' and inserting ``2003.''.

SEC. 308. TECHNICAL CORRECTIONS TO CIVIL PENALTY PROVISIONS.

    Section 46301 is amended--
            (1) by striking ``46302, 46303, or'' in subsection 
        (a)(1)(A);
            (2) by striking ``individual'' the first time it appears in 
        subsection (d)(7)(A) and inserting ``person''; and
            (3) by inserting ``or the Administrator'' in subsection (g) 
        after ``Secretary''.

                TITLE IV--TITLE 49 TECHNICAL CORRECTIONS

SEC. 401. RESTATEMENT OF 49 U.S.C. 106(G).

    (a) In General.--Section 106(g) is amended by striking ``, 
40113(a), (c), and (d), 40114(a), 40119, 44501(a) and (c), 44502(a)(1), 
(b) and (c), 44504, 44505, 44507, 44508, 44511-44513, 44701-44716, 
44718(c), 44721(a), 44901, 44902, 44903 (a)-(c) and (e), 44906, 44912, 
44935-44937, and 44938 (a) and (b), chapter 451, sections 45302-
45304,'' and inserting ``40113 (a), (c)-(e), 40114(a), and 40119, and 
chapter 445 (except sections 44501(b), 44502 (a) (2)-(4), 44503, 44506, 
44509, 44510, 44514, and 44515), chapter 447 (except sections 44717, 
44718 (a) and (b), 44719, 44720, 44721(b), 44722, and 44723), chapter 
449 (except sections 44903(d), 44904, 44905, 44907-44911, 44913, 44915, 
and 44931-44934), chapter 451, chapter 453, sections''.
    (b) Technical Correction.--The amendment made by this section may 
not be construed as making a substantive change in the language 
replaced.

SEC. 402. RESTATEMENT OF 49 U.S.C. 44909.

    Section 44909(a)(2) is amended by striking ``shall'' and inserting 
``should''.

SEC. 403. TYPOGRAPHICAL ERRORS.

    (a) Section 15904.-- Section 15904(c)(1) is amended by inserting 
``section'' before ``15901(b)''.
    (b) Chapter 491.--Chapter 491 is amended--
            (1) by striking ``1996'' in section 49106(b)(1)(F) and 
        inserting ``1986'';
            (2) by striking ``by the board'' in section 49106(c)(3) and 
        inserting ``to the board'';
            (3) by striking ``subchapter II'' in section 49107(b) and 
        inserting ``subchapter III''; and
            (4) by striking ``retention of'' in section 49111(b) and 
        inserting ``retention by''.
    (c) Schedule of Repealed Laws.--The Schedule of Laws Repealed in 
section 5(b) of the Act of November 20, 1997 (Public Law 105-102; 111 
Stat. 2217), is amended by striking ``1996'' the first place it appears 
and inserting ``1986''.
    (d) Amendments Effective as of Earlier Date of Enactment.--The 
amendments made by subsections (a), (b), and (c) are effective as of 
November 20, 1997.
    (e) Correction of Error in Technical Corrections Act.--Effective 
October 11, 1996, section 5(45)(A) of the Act of October 11, 1996 
(Public Law 104-287, 110 Stat. 3393), is amended by striking 
``ENFORCEMENT;'' and inserting ``ENFORCEMENT:''.

                         TITLE V--MISCELLANEOUS

SEC. 501. OVERSIGHT OF FAA RESPONSE TO YEAR 2000 PROBLEM AS IT AFFECTS 
              THE AVIATION INDUSTRY.

    The Administrator of the Federal Aviation Administration shall 
report to the Senate Committee on Commerce, Science, and Transportation 
and the House Committee on Transportation and Infrastructure every 3 
months, in oral or written form, on electronic data processing problems 
associated with the year 2000 within the Administration.

SEC. 502. CARGO COLLISION AVOIDANCE SYSTEMS DEADLINE.

    (a) In General.--The Administrator of the Federal Aviation 
Administration shall require by regulation that, not later than 
December 31, 2002, collision avoidance equipment be installed on each 
cargo aircraft with a payload capacity of 15,000 kilograms or more.
    (b) Extension.--The Administrator may extend the deadline imposed 
by subsection (a) for not more than 2 years if the Administrator finds 
that the extension is needed to promote--
            (1) a safe and orderly transition to the operation of a 
        fleet of cargo aircraft equipped with collision avoidance 
        equipment; or
            (2) other safety or public interest objectives.
    (c) Collision Avoidance Equipment.--For purposes of this section, 
the term ``collision avoidance equipment'' means TCAS II equipment (as 
defined by the Administrator), or any other similar system approved by 
the Administration for collision avoidance purposes.

SEC. 503. RUNWAY SAFETY AREAS.

    Within 6 months after the date of enactment of this Act, the 
Administrator of the Federal Aviation Administration shall initiate 
rulemaking to amend the regulations in part 139 of title 14, Code of 
Federal Regulations--
            (1) to improve runway safety areas; and
            (2) to require the installation of precision approach path 
        indicators.

SEC. 504. AIRPLANE EMERGENCY LOCATORS.

    (a) Requirement.--Section 44712(b) is amended to read as follows:
    ``(b) Nonapplication.--Subsection (a) does not apply to aircraft 
when used in--
            ``(1) flight operations related to the design and testing, 
        manufacture, preparation, and delivery of aircraft; or
            ``(2) the aerial application of a substance for an 
        agricultural purpose.''.
    (b) Effective Date; Regulations.--
            (1) Regulations.--The Secretary of Transportation shall 
        promulgate regulations under section 44712(b) of title 49, 
        United States Code, as amended by subsection (a) not later than 
        January 1, 2002.
            (2) Effective date.--The amendment made by subsection (a) 
        shall take effect on January 1, 2002.

SEC. 505. COUNTERFEIT AIRCRAFT PARTS.

    (a) Denial of Certificate.--Section 44703 is amended by adding at 
the end thereof the following:
    ``(g) Certificate Denied for Dealing in Counterfeit Parts.--The 
Administrator may not issue an airman certificate or an airframe and 
powerplant certificate under subpart D of part 65 of title 14, Code of 
Federal Regulations, to any person convicted of a violation of any 
Federal or State law relating to the installation, production, repair, 
or sale of a counterfeit or falsely represented aviation part or 
material.''.
    (b) Revocation of Certificate.--Section 44710 is amended by adding 
at the end thereof the following:
    ``(g) Revocation for Dealing in Counterfeit Parts.--The 
Administrator shall revoke an airman certificate or an airframe and 
powerplant certificate under subpart D of part 65 of title 14, Code of 
Federal Regulations, issued to any person convicted of a violation of 
any Federal or State law relating to the installation, production, 
repair, or sale of a counterfeit or falsely represented aviation part 
or material.''.
    (c) Prohibition on Employment.--Section 44711 is amended by adding 
at the end thereof the following:
    ``(c) Prohibition on Employment of Convicted Counterfeit Part 
Dealers.--No person subject to this chapter may employ an individual to 
perform a function related to the procurement, sale, production, or 
repair of a part or material, or the installation of a part into a 
civil aircraft, who has been convicted of a violation of any Federal or 
State law relating to the installation, production, repair, or sale of 
a counterfeit or falsely represented aviation part or material.''.

SEC. 506. FAA MAY FINE UNRULY PASSENGERS.

    (a) In General.--Chapter 463 is amended by redesignating section 
46316 as section 46317, and by inserting after section 46315 the 
following:
``Sec.  46316. Interference with cabin or flight crew
    ``(a) In General.--An individual who interferes with the duties or 
responsibilities of the flight crew or cabin crew of a civil aircraft, 
or who poses an imminent threat to the safety of the aircraft or other 
individuals on the aircraft, is liable to the United States Government 
for a civil penalty of not more than $10,000, which shall be paid to 
the Federal Aviation Administration and deposited in the account 
established by section 45303(c).
    ``(b) Compromise and Setoff.--
            ``(1) The Secretary of Transportation may compromise the 
        amount of a civil penalty imposed under subsection (a).
            ``(2) The Government may deduct the amount of a civil 
        penalty imposed or compromised under this section from amounts 
        it owes the individual liable for the penalty.''.
    (b) Conforming Change.--The chapter analysis for chapter 463 is 
amended by striking the item relating to section 46316 and inserting 
after the item relating to section 46315 the following:

``46316. Interference with cabin or flight crew
``46317. General criminal penalty when specific penalty not provided''.

SEC. 507. HIGHER INTERNATIONAL STANDARDS FOR HANDICAPPED ACCESS.

    The Secretary of Transportation shall work with appropriate 
international organizations and the aviation authorities of other 
nations to bring about their establishment of higher standards for 
accommodating handicapped passengers in air transportation, 
particularly with respect to foreign air carriers that code-share with 
domestic air carriers.

SEC. 508. CONVEYANCES OF UNITED STATES GOVERNMENT LAND.

    (a) In General.--Section 47125(a) is amended to read as follows:
    ``(a) Conveyeances to Public Agencies.--Except as provided in 
subsection (b) of this section, the Secretary of Transportation--
            ``(1) shall request the head of the department, agency, or 
        instrumentality owning or controlling land or airspace to 
        convey a property interest in the land or airspace to the 
        public agency sponsoring the project or owning or controlling 
        the airport when necessary to carry out a project under this 
        subchapter at a public airport, to operate a public airport, or 
        for the future development of an airport under the national 
        plan of integrated airport systems; and
            ``(2) may request the head of such a department, agency, or 
        instrumentality to convey a property interest in the land or 
        airspace to a public agency for a use that will complement, 
        facilitate, or augment airport development, including the 
        development of additional revenue from both aviation and 
        nonaviation sources if the Secretary--
                    ``(A) determines that the property is no longer 
                needed for aeronautical purposes;
                    ``(B) determines that the property will be used to 
                generate revenue for the public airport;
                    ``(C) provides preliminary notice to the head of 
                such department, agency, or instrumentality at least 30 
                days before making the request;
                    ``(D) provides an opportunity for notice to the 
                public and public comment on the request; and
                    ``(E) includes in the request a written 
                justification for the conveyance.''.
    (b) Application to Existing Conveyances.--The provisions of section 
47125(a)(2), as amended by subsection (a) apply to property interests 
conveyed under section 47125 of that title before, on, or after the 
date of enactment of this Act, section 516 of the Airport and Airway 
Improvement Act of 1982, section 23 of the Airport and Airway 
Development Act of 1970, or section 16 of the Federal Airport Act. For 
purposes of this section, the Secretary of Transportation (or the 
predecessor of the Secretary) shall be deemed to have met the 
requirements of subparagraphs (C), (D), and (E) of section 47125(a)(2) 
of such title, as so amended, for any such conveyance before the date 
of enactment of this Act.

SEC. 509. FLIGHT OPERATIONS QUALITY ASSURANCE RULES.

    Not later than 90 days after the date of enactment of this Act, the 
Administrator shall issue a notice of proposed rulemaking to develop 
procedures to protect air carriers and their employees from civil 
enforcement action under the program known as Flight Operations Quality 
Assurance. Not later than 1 year after the last day of the period for 
public comment provided for in the notice of proposed rulemaking, the 
Administrator shall issue a final rule establishing those procedures.

SEC. 510. WIDE AREA AUGMENTATION SYSTEM.

    (a) Plan.--The Administrator shall identify or develop a plan to 
implement WAAS to provide navigation and landing approach capabilities 
for civilian use and make a determmination as to whether a backup 
system is necessary. Until the Administrator determines that WAAS is 
the sole means of navigation, the Administration shall continue to 
develop and maintain a backup system.''.
    (b) Report.--Within 6 months after the date of enactment of this 
Act, the Administrator shall--
            (1) report to the Senate Committee on Commerce, Science, 
        and Transportation and the House of Representatives Committee 
        on Transportation and Infrastructure, on the plan developed 
        under subsection (a);
            (2) submit a timetable for implementing WAAS; and
            (3) make a determination as to whether WAAS will ultimately 
        become a primary or sole means of navigation and landing 
        approach capabilities.
    (c) WAAS Defined.--For purposes of this section, the term ``WAAS'' 
means wide area augmentation system.
    (d) Funding Authorization.--There are authorized to be appropriated 
to the Secretary of Transportation such sums as may be necessary to 
carry out this subsection.

SEC. 511. REGULATION OF ALASKA AIR GUIDES.

    The Administrator shall reissue the notice to operators originally 
published in the Federal Register on January 2, 1998, which advised 
Alaska guide pilots of the applicability of part 135 of title 14, Code 
of Federal Regulations, to guide pilot operations. In reissuing the 
notice, the Administrator shall provide for not less than 60 days of 
public comment on the Federal Aviation Administration action. If, 
notwithstanding the public comments, the Administrator decides to 
proceed with the action, the Administrator shall publish in the Federal 
Register a notice justifying the Administrator's decision and providing 
at least 90 days for compliance.

SEC. 512. APPLICATION OF FAA REGULATIONS.

    Section 40113 is amended by adding at the end thereof the 
following:
    ``(f) Application of Certain Regulations to Alaska.--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 considers appropriate.''.

SEC. 513. ADVANCED QUALIFICATION PROGRAM.

    (a) In General.--Chapter 445 is amended by adding at the end 
thereof the following:
``Sec.  44516. Human factors program
    ``(a) Oversight Committee.--The Administrator of the Federal 
Aviation Administration shall establish an advanced qualification 
program oversight committee to advise the Administrator on the 
development and execution of Advanced Qualification Programs for air 
carriers under this section, and to encourage their adoption and 
implementation.
    ``(b) Human Factors Training.--
            ``(1) Air traffic controllers.--The Administrator shall--
                    ``(A) address the problems and concerns raised by 
                the National Research Council in its report ``The 
                Future of Air Traffic Control'' on air traffic control 
                automation; and
                    ``(B) respond to the recommendations made by the 
                National Research Council.
            ``(2) Pilots and flight crews.--The Administrator shall 
        work with the aviation industry to develop specific training 
        curricula, within 12 months after the date of enactment of the 
        National Air Transportation System Improvement Act of 1998, to 
        address critical safety problems, including problems of 
        pilots--
                    ``(A) in recovering from loss of control of the 
                aircraft, including handling unusual attitudes and 
                mechanical malfunctions;
                    ``(B) in deviating from standard operating 
                procedures, including inappropriate responses to 
                emergencies and hazardous weather;
                    ``(C) in awareness of altitude and location 
                relative to terrain to prevent controlled flight into 
                terrain; and
                    ``(D) in landing and approaches, including 
                nonprecision approaches and go-around procedures.
    ``(c) Accident Investigations.--The Administrator, working with the 
National Transportation Safety Board and representatives of the 
aviation industry, shall establish a process to assess human factors 
training as part of accident and incident investigations.
    ``(d) Test Program.--The Administrator shall establish a test 
program in cooperation with United States air carriers to use model 
Jeppesen approach plates or other similar tools to improve nonprecision 
landing approaches for aircraft.
    ``(e) Advanced Qualification Program Defined.--For purposes of this 
section, the term `advanced qualification program' means an alternative 
method for qualifying, training, certifying, and ensuring the 
competency of flight crews and other commercial aviation operations 
personnel subject to the training and evaluation requirements of Parts 
121 and 135 of title 14, Code of Federal Regulations.''.
    (b) Automation and Associated Training.--The Administrator shall 
complete the Administration's updating of training practices for 
automation and associated training requirements within 12 months after 
the date of enactment of this Act.
    (c) Conforming Amendment.--The chapter analysis for chapter 445 is 
amended by adding at the end thereof the following:

``44516. Advanced qualification program''.

SEC. 514. INDEPENDENT VALIDATION OF FAA COSTS AND ALLOCATIONS.

    (a) Independent Assessment.--
            (1) Initiation.--Not later than 90 days after the date of 
        enactment of this Act, the Inspector General of the Department 
        of Transportation shall initiate the analyses described in 
        paragraph (2). In conducting the analyses, the Inspector 
        General shall ensure that the analyses are carried out by 1 or 
        more entities that are independent of the Federal Aviation 
        Administration. The Inspector General may use the staff and 
        resources of the Inspector General or may contract with 
        independent entities to conduct the analyses.
            (2) Assessment of adequacy and accuracy of faa cost data 
        and attributions.--To ensure that the method for capturing and 
        distributing the overall costs of the Federal Aviation 
        Administration is appropriate and reasonable, the Inspector 
        General shall conduct an assessment that includes the 
        following:
                    (A)(i) Validation of Federal Aviation 
                Administration cost input data, including an audit of 
                the reliability of Federal Aviation Administration 
                source documents and the integrity and reliability of 
                the Federal Aviation Administration's data collection 
                process.
                    (ii) An assessment of the reliability of the 
                Federal Aviation Administration's system for tracking 
                assets.
                    (iii) An assessment of the reasonableness of the 
                Federal Aviation Administration's bases for 
                establishing asset values and depreciation rates.
                    (iv) An assessment of the Federal Aviation 
                Administration's system of internal controls for 
                ensuring the consistency and reliability of reported 
                data to begin immediately after full operational 
                capability of the cost accounting system.
                    (B) A review and validation of the Federal Aviation 
                Administration's definition of the services to which 
                the Federal Aviation Administration ultimately 
                attributes its costs, and the methods used to identify 
                direct costs associated with the services.
                    (C) An assessment and validation of the general 
                cost pools used by the Federal Aviation Administration, 
                including the rationale for and reliability of the 
                bases on which the Federal Aviation Administration 
                proposes to allocate costs of services to users and the 
                integrity of the cost pools as well as any other 
                factors considered important by the Inspector General. 
                Appropriate statistical tests shall be performed to 
                assess relationships between costs in the various cost 
                pools and activities and services to which the costs 
                are attributed by the Federal Aviation Administration.
    (b) Deadline.--The independent analyses described in this section 
shall be completed no later than 270 days after the contracts are 
awarded to the outside independent contractors. The Inspector General 
shall submit a final report combining the analyses done by its staff 
with those of the outside independent contractors to the Secretary of 
Transportation, the Administrator, the Committee on Commerce, Science, 
and Transportation of the Senate, and the Committee on Transportation 
and Infrastructure of the House of Representatives. The final report 
shall be submitted by the Inspector General not later than 300 days 
after the award of contracts.
    (c) Funding.--There are authorized to be appropriated such sums as 
may be necessary for the cost of the contracted audit services 
authorized by this section.

SEC. 515. WHISTLEBLOWER PROTECTION FOR FAA EMPLOYEES.

    Section 347(b)(1) of Public Law 104-50 (49 U.S.C. 106, note) is 
amended by striking ``protection;'' and inserting ``protection, 
including the provisions for investigations and enforcement as provided 
in chapter 12 of title 5, United States Code;''.

SEC. 516. REPORT ON MODERNIZATION OF OCEANIC ATC SYSTEM.

    The Administrator of the Federal Aviation Administration shall 
report to the Congress on plan to modernize the oceanic air traffic 
control system, including a budget for the program, a determination of 
the requirements for modernization, and, if necessary, a proposal to 
fund the program.

SEC. 517. REPORT ON AIR TRANSPORTATION OVERSIGHT SYSTEM.

    Beginning in 1999, the Administrator of the Federal Aviation 
Administration shall report biannually to the Congress on the air 
transportation oversight system program announced by the Administration 
on May 13, 1998, in detail on the training of inspectors, the number of 
inspectors using the system, air carriers subject to the system, and 
the budget for the system.

                TITLE VI--AVIATION COMPETITION PROMOTION

SEC. 601. PURPOSE.

    The purpose of this title is to facilitate, through a 5-year pilot 
program, incentives and projects that will help up to 40 communities or 
consortia of 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. 602. ESTABLISHMENT OF SMALL COMMUNITY AVIATION DEVELOPMENT 
              PROGRAM.

    Section 102 is amended by adding at the end thereof the following:
    ``(g) Small Community Air Service Development Program.--
            ``(1) Establishment.--The Secretary shall establish a 5-
        year pilot aviation development program to be administered by a 
        program director designated by the Secretary.
            ``(2) Functions.--The program 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 sections 41744, 41745, and 41746 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 program director shall provide an 
        annual report to the Secretary and the Congress beginning 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. 603. COMMUNITY-CARRIER AIR SERVICE PROGRAM.

    (a) In General.--Subchapter II 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 program director designated 
by the Secretary under section 102(g) may require, and submit the 
assessment and service proposal to the program director.
    ``(b) Selection of Participants.--In selecting community programs 
for participation in the communities program under subsection (a), the 
program 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 program 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 service 
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) Program Support Function.--The program director shall work 
with small communities and air carriers, taking into account their 
proposals and needs, to facilitate the initiation of service. The 
program 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 
        section;
            ``(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) 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;
            ``(5) take such other action under subchapter III of this 
        chapter as may be appropriate.
    ``(e) Limitations.--
            ``(1) Community support.--The program director may not 
        provide financial assistance under subsection (c)(2) to any 
        community unless the program 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, but of not less than 25 percent 
                of the cost of the project in any event;
                    ``(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 program director may not obligate more 
        than $20,000,000 over the 5 years of the program.
            ``(3) Number of participants.--The program established 
        under subsection (a) shall not involve more than 40 communities 
        or consortia of communities.
    ``(f) Report.--The program 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.
``Sec.  41744. Pilot program project authority
    ``(a) In General.--The program director designated by the Secretary 
of Transportation under section 102(g)(1) shall establish a 5-year 
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 air service link-ups to support 
        the improved access.
    ``(b) Project Authority.--Under the pilot program established 
pursuant to subsection (a), the program director may--
            ``(1) provide financial assistance by way of grants to 
        small communities or consortia of small communities under 
        section 41743 of up to $500,000 per year; and
            ``(2) take such other action as may be appropriate.
    ``(c) Other Action.--Under the pilot program established pursuant 
to subsection (a), the program director may facilitate service by--
            ``(1) working with airports and air carriers to ensure that 
        appropriate facilities are made available at essential 
        airports;
            ``(2) collecting data on air carrier service to small 
        communities; and
            ``(3) providing policy recommendations to the Secretary to 
        stimulate air service and competition to small communities.
``Sec.  41745. 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 41744(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 Other Provisions of Subchapter.--The 
Secretary shall carry out the 5-year pilot program authorized by this 
subchapter in such a manner as to complement action taken under the 
other provisions of this subchapter. To the extent the Secretary 
determines to be appropriate, the Secretary may adopt criteria for 
implementation of the 5-year pilot program that are the same as, or 
similar to, the criteria developed under the preceding sections of this 
subchapter for determining which airports are eligible under those 
sections. 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 41744(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 National Air 
Transportation System Improvement Act of 1998.
``Sec.  41746. 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 aircraft;
            ``(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 Title; and
            ``(5) shall work with the Federal Aviation Administration 
        on airport and air traffic control needs of communities in 
        program.
``Sec.  41747. 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 services 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 no more than 3 facilities 
        willing to fund a pro rata share of construction costs for an 
        air traffic control tower so as to achieve, at a minimum, a 1:1 
        benefit-to-cost ratio, as required for eligibility under the 
        Federal Contract Tower Program, and for each of such facilities 
        the Federal share of construction costs does not exceed 
        $1,000,000.
    ``(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) Conforming Amendment.--The chapter analysis for chapter 417 is 
amended by inserting after the item relating to section 41742 the 
following:

``41743. Air service program for small communities
``41744. Pilot program project authority
``41745. Assistance to communities for service
``41746. Additional authority
``41747. Air traffic control services pilot program''.
    (c) Waiver of Local Contribution.--Section 41736(b) 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. 604. FUNDING AUTHORITY.

    The Secretary of Transportation may obligate not more than 
$20,000,000 for the 5 fiscal year period beginning with fiscal year 
1999 to carry out sections 41743 through 41746 of chapter 417 of title 
49, United States Code, out of the account established under section 
45303.

SEC. 605. MARKETING PRACTICES.

    Section 41712 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 
National Air Transportation System Improvement Act of 1998, 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 comment, the Secretary shall promulgate 
regulations that address the problem.''.

SEC. 606. SLOT EXEMPTIONS FOR NONSTOP REGIONAL JET SERVICE.

    (a) In General.--Section 41714 is amended--
            (1) by redesignating subsection (h) as subsection (i); and
            (2) by inserting after subsection (g) the following:
    ``(h) Slots for Nonstop Jet Service Exemption.--
            ``(1) In general.--Within 90 days after receiving an 
        application for an exemption to provide nonstop regional jet 
        air service between--
                    ``(A) a nonhub airport (as defined in section 
                41731(a)(4)) or a small hub airport (as defined in 
                section 41731(a)(5)); and
                    ``(B) a high density airport subject to the 
                exemption authority under subsection (a),
        the Secretary shall grant or deny the exemption in accordance 
        with established principles of safety and the promotion of 
        competition.
            ``(2) Existing slots taken in account.--In deciding to 
        grant or deny the exemption, the Secretary may take into 
        consideration the slots already used by the applicant.
            ``(3) Conditions.--The Secretary may grant an exemption to 
        an air carrier under paragraph (1)--
                    ``(A) for a period of not less than 12 months;
                    ``(B) for a minimum of 2 daily roundtrip flights; 
                and
                    ``(C) for a maximum of 3 daily roundtrip flights.
            ``(4) Change of nonhub or small hub airport; jet 
        aircraft.--The Secretary may, upon application made by an air 
        carrier operating under an exemption granted under paragraph 
        (1)--
                    ``(A) authorize the air carrier to upgrade its 
                service under the exemption to a larger jet aircraft; 
                and
                    ``(B) authorize an air carrier operating under such 
                an exemption to change the nonhub airport or small hub 
                airport for which the exemption was granted to provide 
                the same service to a different nonhub or small hub 
                airport if--
                            ``(i) the air carrier has been operating 
                        under the exemption for a period of not less 
                        than 12 months; and
                            ``(ii) the air carrier can demonstrate 
                        unmitigatable losses.
            ``(5) Forefeiture for misuse.--Any exemption granted under 
        paragraph (1) shall be terminated immediately by the Secretary 
        if the air carrier to which it was granted uses the slot for 
        any purpose other than the purpose for which it was granted or 
        in violation of the conditions under which it was granted.
            ``(6) Restoration of air service.--To the extent that--
                    ``(A) slots were withdrawn from an air carrier 
                under subsection (b) of this section;
                    ``(B) the withdrawal of slots under that subsection 
                resulted in a net loss of slots; and
                    ``(C) the net loss of slots resulting from the 
                withdrawal had an adverse effect on service to nonhub 
                airports and in other domestic markets,
        the Secretary shall give priority consideration to the request 
        of any air carrier from which slots were withdrawn under that 
        section for an equivalent number of slots at the airport where 
        the slots were withdrawn.
            ``(7) Priority to new entrants and limited incumbent 
        carriers.--In assigning slots under this subsection the 
        Secretary shall, in conjunction with paragraph (5), give 
        priority consideration to an application from an air carrier 
        that, as of July 1, 1998, held fewer than 20 slots at the high 
        density airport for which it filed an exemption application.''.
    (b) Definitions.--Subsection (i) of section 41714 as redesignated 
by subsection (a), is amended by--
            (1) by striking ``The term'' in paragraph (1) and inserting 
        ``Except as provided in paragraph (5), the term''; and
            (2) adding at the end thereof the following:
            ``(5) Nonstop jet exemption definitions.--Any term used in 
        subsection (h) that is defined in section 41762 has the meaning 
        given that term by section 41762.''.
    (c) Slot Withdrawal Not to Affect Nonhub Service.--Section 41714, 
as amended by subsection (a), is amended--
            (1) by redesignating subsection (i) as subsection (j); and
            (2) by inserting after subsection (h) the following:
    ``(i) Slot Withdrawal May Not Affect Nonhub Service.--The Secretary 
may not withdraw a slot from a United States air carrier under this 
section in order to provide a slot to a foreign air carrier for 
purposes of international air transportation unless the Secretary finds 
that--
            ``(1) the withdrawal of that slot from the United States 
        air carrier will not adversely affect air service to nonhub 
        airports; and
            ``(2) United States air carriers seeking slots for purposes 
        of international air transportation at an airport in the home 
        country of that foreign air carrier receive reciprocal 
        treatment by the government of that country.''.

SEC. 607. SECRETARY SHALL GRANT EXEMPTIONS TO PERIMETER RULE.

    (a) In General.--The Secretary of Transportation shall by order 
grant exemptions from the application of section 49109 of title 49, 
United States Code, to air carriers to operate limited frequencies and 
aircraft on select routes between Ronald Reagan Washington National 
Airport and other airports if the Secretary finds that the exemption 
will--
            (1) provide air transportation service with domestic 
        network benefits in areas beyond the perimeter described in 
        that section; and
            (2) increase competition in multiple markets.
    (b) Limitations.--
            (1) Aircraft.--An exemption granted under subsection (a) 
        may not be granted with respect to any aircraft that is not a 
        Stage 3 aircraft (as defined by the Secretary).
            (2) Number and type of operation.--An exemption granted 
        under subsection (a) may not--
                    (A) result in more than 12 new daily air carrier 
                slots at such airport for long-haul service beyond the 
                perimeter;
                    (B) result in more than 12 new daily commuter slots 
                at such airport; or
                    (C) result in new daily commuter slots for service 
                to any within-the-perimeter market that is not an 
                underserved market.
            (3) Hours of operation.--In granting exemptions under 
        subsection (a), the Secretary shall distribute the 24 new daily 
        slots fairly evenly across the hours between 7:00 a.m. and 9:59 
        p.m., except that--
                    (A) 2 slots per hour shall be added during 9 of the 
                hours beginning during that period; and
                    (B) 1 slot per hour shall be added during 6 of the 
                hours beginning during that period.
            (4) Protection of incumbent carriers.--An exemption granted 
        under subsection (a) may not result in the withdrawal of a slot 
        from any incumbent air carrier at that airport.
    (c) Within-Perimeter Slot Distribution.--The Secretary shall 
develop criteria for distributing slots for flights within the 
perimeter to airports other than large hubs (as defined in section 
47134(d)(2) of title 49, United States Code) in a manner consistent 
with promoting competition.
    (d) Report.--Within 1 year after the date of enactment of this Act, 
and biannually thereafter, the Secretary shall certify to the United 
States Senate Committee on Commerce, Science, and Transportation, the 
United States House of Representatives Committee on Transportation and 
Infrastructure, and the Governments of Maryland and Virginia that noise 
standards, air traffic congestion, airport-related vehicular 
congestion, safety standards, and adequate air service to communities 
served by small hub airports and medium hub airports within the 
perimeter described in section 49109 of title 49, United States Code, 
have been maintained at appropriate levels.
    (d) Forfeiture for Misuse.--The Secretary shall terminate an 
exemption granted under subsection (a) if the air carrier to which it 
was granted violates subsection (b)(5), and reallocate the exemption 
under subsection (a) to another air carrier.
    (f) Certain Title 49 Definitions Apply.--Any term used in this 
section that is defined in chapter 417 of title 49, United States Code, 
has the meaning given that term in that chapter.

SEC. 608. ADDITIONAL SLOTS AT CHICAGO'S O'HARE AIRPORT.

    (a) In General.--The Secretary of Transportation may grant 100 
additional slots under section 41714 of title 49, United States Code, 
over a 3-year period to air carriers to operate limited frequencies and 
aircraft on select routes between O'Hare Airport in Chicago, Illinois, 
and other airports if the Secretary--
            (1) first converts unused military slots at that airport to 
        air carrier slots;
            (2) before granting the additional slots, finds that the 
        additional capacity--
                    (A) is available; and
                    (B) can be used safely; and
            (3) limits the use of the additional slots to Stage 3 
        aircraft (as defined by the Secretary).
    (b) Certain Title 49 Definitions Apply.--Any term used in this 
section that is defined in chapter 417 of title 49, United States Code, 
has the meaning given that term in that chapter.

SEC. 609. CONSUMER NOTIFICATION OF E-TICKET EXPIRATION DATES.

    Section 41712 is amended by--
            (1) inserting ``(a) In General.--'' before ``On''; and
            (2) adding at the end thereof the following:
    ``(b) E-ticket Expiration Notice.--It shall be an unfair or 
deceptive practice under subsection (a) for any air carrier utilizing 
electronically transmitted tickets to fail to notify the purchaser of 
such a ticket of its expiration date, if any.''.

                      TITLE VII--PARK OVERFLIGHTS

SEC. 701. FINDINGS.

    The Congress finds that--
            (1) the Federal Aviation Administration has sole authority 
        to control airspace over the United States;
            (2) the Federal Aviation Administration has the authority 
        to preserve, protect, and enhance the environment by 
        minimizing, mitigating, or preventing the adverse effects of 
        aircraft overflights on the public and tribal lands;
            (3) the National Park Service has the responsibility of 
        conserving the scenery and natural and historic objects and 
        wildlife in national parks and of providing for the enjoyment 
        of the national parks in ways that leave the national parks 
        unimpaired for future generations;
            (4) the protection of tribal lands from aircraft 
        overflights is consistent with protecting the public health and 
        welfare and is essential to the maintenance of the natural and 
        cultural resources of Indian tribes;
            (5) the National Parks Overflights Working Group, composed 
        of general aviation, air tour, environmental, and Native 
        American representatives, recommended that the Congress enact 
        legislation based on its consensus work product; and
            (6) this title reflects the recommendations made by that 
        Group.

SEC. 702. AIR TOUR MANAGEMENT PLANS FOR NATIONAL PARKS.

    -(a) In General.--Chapter 401 is amended by adding at the end the 
following:
``Sec.  40125. Overflights of national parks
    ``(a) In General.--
            ``(1) General requirements.--A commercial air tour operator 
        may not conduct commercial air tour operations over a national 
        park or tribal lands except--
                    ``(A) in accordance with this section;
                    ``(B) in accordance with conditions and limitations 
                prescribed for that operator by the Administrator; and
                    ``(C) in accordance with any effective air tour 
                management plan for that park or those tribal lands.
            ``(2) Application for operating authority.--
                    ``(A) Application required.--Before commencing 
                commercial air tour operations over a national park or 
                tribal lands, a commercial air tour operator shall 
                apply to the Administrator for authority to conduct the 
                operations over that park or those tribal lands.
                    ``(B) Competitive bidding for limited capacity 
                parks.--Whenever a commercial air tour management plan 
                limits the number of commercial air tour flights over a 
                national park area during a specified time frame, the 
                Administrator, in cooperation with the Director, shall 
                authorize commercial air tour operators to provide such 
                service. The authorization shall specify such terms and 
                conditions as the Administrator and the Director find 
                necessary for management of commercial air tour 
                operations over the national park. The Administrator, 
                in cooperation with the Director, shall develop an open 
                competitive process for evaluating proposals from 
                persons interested in providing commercial air tour 
                services over the national park. In making a selection 
                from among various proposals submitted, the 
                Administrator, in cooperation with the Director, shall 
                consider relevant factors, including--
                            ``(i) the safety record of the company or 
                        pilots;
                            ``(ii) any quiet aircraft technology 
                        proposed for use;
                            ``(iii) the experience in commercial air 
                        tour operations over other national parks or 
                        scenic areas;
                            ``(iv) the financial capability of the 
                        company;
                            ``(v) any training programs for pilots; and
                            ``(vi) responsiveness to any criteria 
                        developed by the National Park Service or the 
                        affected national park.
                    ``(C) Number of operations authorized.--In 
                determining the number of authorizations to issue to 
                provide commercial air tour service over a national 
                park, the Administrator, in cooperation with the 
                Director, shall take into consideration the provisions 
                of the air tour management plan, the number of existing 
                commercial air tour operators and current level of 
                service and equipment provided by any such companies, 
                and the financial viability of each commercial air tour 
                operation.
                    ``(D) Cooperation with nps.--Before granting an 
                application under this paragraph, the Administrator 
                shall, in cooperation with the Director, develop a air 
                tour management plan in accordance with subsection (b) 
                and implement such plan.
                    ``(E) Time limit on response to ATMP 
                applications.--The Administrator shall act on any such 
                application and issue a decision on the application not 
                later than 24 months after it is received or amended.
            ``(3) Exception.--Notwithstanding paragraph (1), commercial 
        air tour operators may conduct commercial air tour operations 
        over a national park under part 91 of the Federal Aviation 
        Regulations (14 CFR 91.1 et seq.) if--
                    ``(A) such activity is permitted under part 119 (14 
                CFR 119.1(e)(2));
                    ``(B) the operator secures a letter of agreement 
                from the Administrator and the national park 
                superintendent for that national park describing the 
                conditions under which the flight operations will be 
                conducted; and
                    ``(C) the total number of operations under this 
                exception is limited to not more than 5 flights in any 
                30-day period over a particular park.
            ``(4) Special rule for safety requirements.--
        Notwithstanding subsection (c), an existing commercial air tour 
        operator shall, not later than 90 days after the date of 
        enactment of the National Air Transportation System Improvement 
        Act of 1998, apply for operating authority under part 119, 121, 
        or 135 of the Federal Aviation Regulations (14 CFR Pt. 119, 
        121, or 135). A new entrant commercial air tour operator shall 
        apply for such authority before conducting commercial air tour 
        operations over a national park or tribal lands.
    ``(b) Air Tour Management Plans.--
            ``(1) Establishment of atmps.--
                    ``(A) In general.--The Administrator shall, in 
                cooperation with the Director, establish an air tour 
                management plan for any national park or tribal land 
                for which such a plan is not already in effect whenever 
                a person applies for authority to operate a commercial 
                air tour over the park. The development of the air tour 
                management plan is to be a cooperative undertaking 
                between the Federal Aviation Administration and the 
                National Park Service. The air tour management plan 
                shall be developed by means of a public process, and 
                the agencies shall develop information and analysis 
                that explains the conclusions that the agencies make in 
                the application of the respective criteria. Such 
                explanations shall be included in the Record of 
                Decision and may be subject to judicial review.
                    ``(B) Objective.--The objective of any air tour 
                management plan shall be to develop acceptable and 
                effective measures to mitigate or prevent the 
                significant adverse impacts, if any, of commercial air 
                tours upon the natural and cultural resources and 
                visitor experiences and tribal lands.
            ``(2) Environmental determination.--In establishing an air 
        tour management plan under this subsection, the Administrator 
        and the Director shall each sign the environmental decision 
        document required by section 102 of the National Environmental 
        Policy Act of 1969 (42 U.S.C. 4332) which may include a finding 
        of no significant impact, an environmental assessment, or an 
        environmental impact statement, and the Record of Decision for 
        the air tour management plan.
            ``(3) Contents.--An air tour management plan for a national 
        park--
                    ``(A) may prohibit commercial air tour operations 
                in whole or in part;
                    ``(B) may establish conditions for the conduct of 
                commercial air tour operations, including commercial 
                air tour routes, maximum or minimum altitudes, time-of-
                day restrictions, restrictions for particular events, 
                maximum number of flights per unit of time, intrusions 
                on privacy on tribal lands, and mitigation of noise, 
                visual, or other impacts;
                    ``(C) may apply to all commercial air tours within 
                \1/2\ mile outside the boundary of a national park;
                    ``(D) shall include incentives (such as preferred 
                commercial air tour routes and altitudes, relief from 
                caps and curfews) for the adoption of quieter aircraft 
                technology by commercial air tour operators conducting 
                commercial air tour operations at the park;
                    ``(E) shall provide for the initial allocation of 
                opportunities to conduct commercial air tours if the 
                plan includes a limitation on the number of commercial 
                air tour flights for any time period; and
                    ``(F) shall justify and document the need for 
                measures taken pursuant to subparagraphs (A) through 
                (E).
            ``(4) Procedure.--In establishing a commercial air tour 
        management plan for a national park, the Administrator and the 
        Director shall--
                    ``(A) initiate at least one public meeting with 
                interested parties to develop a commercial air tour 
                management plan for the park;
                    ``(B) publish the proposed plan in the Federal 
                Register for notice and comment and make copies of the 
                proposed plan available to the public;
                    ``(C) comply with the regulations set forth in 
                sections 1501.3 and 1501.5 through 1501.8 of title 40, 
                Code of Federal Regulations (for purposes of complying 
                with those regulations, the Federal Aviation 
                Administration is the lead agency and the National Park 
                Service is a cooperating agency); and
                    ``(D) solicit the participation of any Indian tribe 
                whose tribal lands are, or may be, overflown by 
                aircraft involved in commercial air tour operations 
over a national park or tribal lands, as a cooperating agency under the 
regulations referred to in paragraph (4)(C).
            ``(5) Amendments.--Any amendment of an air tour management 
        plan shall be published in the Federal Register for notice and 
        comment. A request for amendment of an air tour management plan 
        shall be made in such form and manner as the Administrator may 
        prescribe.
    ``(c) Interim Operating Authority.--
            ``(1) In general.--Upon application for operating 
        authority, the Administrator shall grant interim operating 
        authority under this paragraph to a commercial air tour 
        operator for a national park or tribal lands for which the 
        operator is an existing commercial air tour operator.
            ``(2) Requirements and limitations.--Interim operating 
        authority granted under this paragraph--
                    ``(A) shall provide annual authorization only for 
                the greater of--
                            ``(i) the number of flights used by the 
                        operator to provide such tours within the 12-
                        month period prior to the date of enactment of 
                        the National Air Transportation System 
                        Improvement Act of 1998; or
                            ``(ii) the average number of flights per 
                        12-month period used by the operator to provide 
                        such tours within the 36-month period prior to 
                        such date of enactment, and, for seasonal 
                        operations, the number of flights so used 
                        during the season or seasons covered by that 
                        12-month period;
                    ``(B) may not provide for an increase in the number 
                of operations conducted during any time period by the 
                commercial air tour operator to which it is granted 
                unless the increase is agreed to by the Administrator 
                and the Director;
                    ``(C) shall be published in the Federal Register to 
                provide notice and opportunity for comment;
                    ``(D) may be revoked by the Administrator for 
                cause;
                    ``(E) shall terminate 180 days after the date on 
                which an air tour management plan is established for 
                that park or those tribal lands; and
                    ``(F) shall--
                            ``(i) promote protection of national park 
                        resources, visitor experiences, and tribal 
                        lands;
                            ``(ii) promote safe operations of the 
                        commercial air tour;
                            ``(iii) promote the adoption of quiet 
                        technology, as appropriate; and
                            ``(iv) allow for modifications of the 
                        operation based on experience if the 
                        modification improves protection of national 
                        park resources and values and of tribal lands.
            ``(3) New entrant air tour operators.--
                    ``(A) In general.--The Administrator, in 
                cooperation with the Director, may grant interim 
                operating authority under this paragraph to an air tour 
                operator for a national park for which that operator is 
                a new entrant air tour operator if the Administrator 
                determines the authority is necessary to ensure 
                competition in the provision of commercial air tours 
                over that national park or those tribal lands.
                    ``(B) Safety limitation.--The Administrator may not 
                grant interim operating authority under subparagraph 
                (A) if the Administrator determines that it would 
                create a safety problem at that park or on tribal 
                lands, or the Director determines that it would create 
                a noise problem at that park or on tribal lands.
                    ``(C) ATMP limitation.--The Administrator may grant 
                interim operating authority under subparagraph (A) of 
                this paragraph only if the air tour management plan for 
                the park or tribal lands to which the application 
                relates has not been developed within 24 months after 
                the date of enactment of the National Air 
                Transportation System Improvement Act of 1998.
    ``(d) Definitions.--In this section, the following definitions 
apply:
            ``(1) Commercial air tour.--The term `commercial air tour' 
        means any flight conducted for compensation or hire in a 
        powered aircraft where a purpose of the flight is sightseeing. 
        If the operator of a flight asserts that the flight is not a 
        commercial air tour, factors that can be considered by the 
        Administrator in making a determination of whether the flight 
        is a commercial air tour, include, but are not limited to--
                    ``(A) whether there was a holding out to the public 
                of willingness to conduct a sightseeing flight for 
                compensation or hire;
                    ``(B) whether a narrative was provided that 
                referred to areas or points of interest on the surface;
                    ``(C) the area of operation;
                    ``(D) the frequency of flights;
                    ``(E) the route of flight;
                    ``(F) the inclusion of sightseeing flights as part 
                of any travel arrangement package; or
                    ``(G) whether the flight or flights in question 
                would or would not have been canceled based on poor 
                visibility of the surface.
            ``(2) Commercial air tour operator.--The term `commercial 
        air tour operator' means any person who conducts a commercial 
        air tour.
            ``(3) Existing commercial air tour operator.--The term 
        `existing commercial air tour operator' means a commercial air 
        tour operator that was actively engaged in the business of 
        providing commercial air tours over a national park at any time 
        during the 12-month period ending on the date of enactment of 
        the National Air Transportation System Improvement Act of 1998.
            ``(4) New entrant commercial air tour operator.--The term 
        `new entrant commercial air tour operator' means a commercial 
        air tour operator that--
                    ``(A) applies for operating authority as a 
                commercial air tour operator for a national park; and
                    ``(B) has not engaged in the business of providing 
                commercial air tours over that national park or those 
                tribal lands in the 12-month period preceding the 
                application.
            ``(5) Commercial air tour operations.--The term `commercial 
        air tour operations' means commercial air tour flight 
        operations conducted--
                    ``(A) over a national park or within \1/2\ mile 
                outside the boundary of any national park;
                    ``(B) below a minimum altitude, determined by the 
                Administrator in cooperation with the Director, above 
                ground level (except solely for purposes of takeoff or 
                landing, or necessary for safe operation of an aircraft 
                as determined under the rules and regulations of the 
                Federal Aviation Administration requiring the pilot-in-
                command to take action to ensure the safe operation of 
                the aircraft); and
                    ``(C) less than 1 mile laterally from any 
                geographic feature within the park (unless more than 
                \1/2\ mile outside the boundary).
            ``(6) National park.--The term `national park' means any 
        unit of the National Park System.
            ``(7) Tribal lands.--The term `tribal lands' means `Indian 
        country', as defined by section 1151 of title 18, United States 
        Code, that is within or abutting a national park.
            ``(8) Administrator.--The term `Administrator' means the 
        Administrator of the Federal Aviation Administration.
            ``(9) Director.--The term `Director' means the Director of 
        the National Park Service.''.
    (b) Clerical Amendment.--The table of sections for chapter 401 is 
amended by adding at the end thereof the following:

``40125. Overflights of national parks''.

SEC. 703. ADVISORY GROUP.

    (a) Establishment.--Not later than 1 year after the date of 
enactment of this Act, the Administrator of the Federal Aviation 
Administration and the Director of the National Park Service shall 
jointly establish an advisory group to provide continuing advice and 
counsel with respect to the operation of commercial air tours over and 
near national parks.
    (b) Membership.--
            (1) In general.--The advisory group shall be composed of--
                    (A) a balanced group of --
                            (i) representatives of general aviation;
                            (ii) representatives of commercial air tour 
                        operators;
                            (iii) representatives of environmental 
                        concerns; and
                            (iv) representatives of Indian tribes;
                    (B) a representative of the Federal Aviation 
                Administration; and
                    (C) a representative of the National Park Service.
            (2) Ex-officio members.--The Administrator and the Director 
        shall serve as ex-officio members.
            (3) Chairperson.--The representative of the Federal 
        Aviation Administration and the representative of the National 
        Park Service shall serve alternating 1-year terms as chairman 
        of the advisory group, with the representative of the Federal 
        Aviation Administration serving initially until the end of the 
        calendar year following the year in which the advisory group is 
        first appointed.
    (c) Duties.--The advisory group shall provide advice, information, 
and recommendations to the Administrator and the Director--
            (1) on the implementation of this title;
            (2) on the designation of commonly accepted quiet aircraft 
        technology for use in commercial air tours of national parks or 
        tribal lands, which will receive preferential treatment in a 
        given air tour management plan;
            (3) on other measures that might be taken to accommodate 
        the interests of visitors to national parks; and
            (4) on such other national park or tribal lands-related 
        safety, environmental, and air touring issues as the 
        Administrator and the Director may request.
    (d) Compensation; Support; FACA.--
            (1) Compensation and travel.--Members of the advisory group 
        who are not officers or employees of the United States, while 
        attending conferences or meetings of the group or otherwise 
        engaged in its business, or while serving away from their homes 
        or regular places of business, each member may be allowed 
        travel expenses, including per diem in lieu of subsistence, as 
        authorized by section 5703 of title 5, United States Code, for 
        persons in the Government service employed intermittently.
            (2) Administrative support.--The Federal Aviation 
        Administration and the National Park Service shall jointly 
        furnish to the advisory group clerical and other assistance.
            (3) Nonapplication of faca.--Section 14 of the Federal 
        Advisory Committee Act (5 U.S.C. App.) does not apply to the 
        advisory group.
    (e) Report.--The Administrator and the Director shall jointly 
report to the Congress within 24 months after the date of enactment of 
this Act on the success of this title in providing incentives for quiet 
aircraft technology.

SEC. 704. EXEMPTION.

    Section 40125 of title 49, United States Code, as added by section 
702 of this Act, does not apply to--
            (1) the Grand Canyon National Park;
            (2) Indian country within or abutting the Grand Canyon 
        National Park;
            (3) any unit of the National Park System located in Alaska; 
        or
            (4) Indian country located in Alaska.

SEC. 705. OVERFLIGHT FEE REPORT.

    Not later than 180 days after the date of enactment of this Act, 
the Administrator of the Federal Aviation Administration shall transmit 
to Congress a report on the effects proposed overflight fees are likely 
to have on the commercial air tour industry. The report shall include, 
but shall not be limited to--
            (1) the viability of a tax credit for the commercial air 
        tour operators equal to the amount of the proposed fee charged 
        by the National Park Service; and
            (2) the financial effects proposed offsets are likely to 
        have on Federal Aviation Administration budgets and 
        appropriations.

               TITLE VIII--AVIATION TRUST FUND AMENDMENTS

SEC. 801. AMENDMENTS TO THE AIRPORT AND AIRWAY TRUST FUND.

    Section 9502(d)(1) of the Internal Revenue Code of 1986 (relating 
to expenditures from Airport and Airway Trust Fund) is amended--
            (1) by striking ``1998,'' and inserting ``2002,'';
            (2) by striking ``1996;'' in subparagraph (A) and inserting 
        ``1996, or the National Air Transportation System Improvement 
        Act of 1998;'';
            (3) by striking ``or'' at the end of subparagraph (B); and
            (4) by striking ``(B).'' in subparagraph (C) and inserting 
        ``(B); or''.
                                 <all>