[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 379 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 379

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 4, 1999

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

_______________________________________________________________________

                                 A BILL


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

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Air Service Restoration Act''.

SEC. 2. FINDINGS.

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

SEC. 3. PURPOSE.

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

SEC. 4. ESTABLISHMENT OF SMALL COMMUNITY AVIATION DEVELOPMENT 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 
        2000 that--
                    ``(A) analyzes the availability of air 
                transportation services in small communities, 
                including, but not limited to, an assessment of the air 
                fares charged for air transportation services in small 
                communities compared to air fares charged for air 
                transportation services in larger metropolitan areas 
                and an assessment of the levels of service, measured by 
                types of aircraft used, the availability of seats, and 
                scheduling of flights, provided to small communities;
                    ``(B) identifies the policy, economic, geographic 
                and marketplace factors that inhibit the availability 
                of quality, affordable air transportation services to 
                small communities; and
                    ``(C) provides policy recommendations to address 
                the policy, economic, geographic and marketplace 
factors inhibiting the availability of quality, affordable air 
transportation services to small communities.''.

SEC. 5. COMMUNITY-CARRIER AIR SERVICE PROGRAM.

    (a) In General.--Subchapter II of chapter 417 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 section (a), the 
program director shall apply criteria, including geographical diversity 
and the presentation of unique circumstances, that will demonstrate the 
feasibility of the program. For purposes of this subsection, the 
application of geographical diversity criteria means criteria that--
            ``(1) will provide the development of a national air 
        transportation system; and
            ``(2) will involve the participation of communities in all 
        regions of the country.
    ``(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 faciliate 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 authorized under section 6 of the 
        Air Service Restoration Act 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 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 $100,000,000 of the amounts authorized under section 6 of 
        the Air Service Restoration Act 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 program 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) out of amounts authorized under section 6 of the Air 
        Service Restoration Act, 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.
    ``(d) Additional Action.--Under the pilot program established 
pursuant to subsection (a), the Secretary shall work with air carriers 
providing service to participating communities and major air carriers 
serving large hub airports (as defined in section 41731(a)(3)) to 
facilitate joint fare arrangements consistent with normal industry 
practice.
``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 
related 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 that continued success of 
that program.
    ``(f) Program To Terminate in 5 Years.--No new financial assistance 
may be provided under this subsection chapter for any fiscal year 
beginning more than 5 years after the date of enactment of the Air 
Service Restoration Act.
``Sec. 41746 Additional authority
    ``In carrying out this chapter, the Secretary--
            ``(1) may provide assistance to State 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 Act; and
            ``(5) shall work with the Federal Aviation Administration 
        on airport and air traffic control needs of communities in the 
        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 subchapter II 
of 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) Wavier 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.''.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation such sums as may be 
necessary to carry out section 41747 of title 49, United States Code.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    To carry out sections 41743 through 41746 of title 49, United 
States Code, for the 4 fiscal-year period beginning with fiscal year 
2000 there are authorized to be appropriated to the Secretary of 
Transportation not more than $100,000,000.

SEC. 7. 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 
Air Service Restoration Act, the Secretary shall review the marketing 
practices of air carriers that may inhibit the availability to 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;
            ``(5) exclusive dealings arrangements; and
            ``(6) 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 services to such communities, then, after public 
notice and an opportunity for comment, the Secretary shall promulgate 
regulations that address the problem.''.

SEC. 8. NONDISCRIMINATORY INTERLINE INTERCONNECTION REQUIREMENTS.

    (a) In General.--Subchapter I of chapter 417 is amended by adding 
at the end thereof the following:
``Sec. 41717. Interline agreements for domestic transportation
    ``(a) Nondiscriminatory Requirements.--If a major air carrier that 
provides air service to an essential airport facility has any agreement 
involving ticketing, baggage and ground handling, and terminal and gate 
access with another carrier, it shall provide the same services to any 
requesting air carrier that offers service to a community selected for 
participation in the program under section 41743 under similar terms 
and conditions and on a nondiscriminatory basis within 30 days after 
receiving the request, as long as the requesting air carrier meets such 
safety, service, financial, and maintenance requirements, if any, as 
the Secretary may by regulation establish consistent with public 
convenience and necessity. The Secretary must review any proposed 
agreement to determine if the requesting carrier meets operational 
requirements consistent with the rules, procedures, and policies of the 
major carrier. This agreement may be terminated by either party in the 
event of failure to meet the standards and conditions outlined in the 
agreement.''.
    ``(b) Definitions.--In this section the term `essential airport 
facility' means a large hub airport (as defined in section 41731(a)(3)) 
in the contiguous 48 States in which one carrier has more than 50 
percent of such airport's total annual enplanements.''.
    (b) Clerical Amendments.--The chapter analysis for subchapter I of 
chapter 417 is amended by adding at the end thereof the following:

``41717. Interline agreements for domestic transportation.''.
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