[Congressional Record Volume 140, Number 107 (Friday, August 5, 1994)]
[House]
[Page H]
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[Congressional Record: August 5, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                     CONFERENCE REPORT ON H.R. 2139

  Mr. MINETA submitted the following conference report and statement on 
the bill (H.R. 2739) to amend the Airport and Airway Improvement Act of 
1982 to authorize appropriations for fiscal years 1994, 1995, and 1996, 
and for other purposes:

                  Conference Report (H. Rept. 103-677)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     2739) to amend the Airport and Airway Improvement Act of 1982 
     to authorize appropriations for fiscal years 1994, 1995, and 
     1996, and for other purposes, having met, after full and free 
     conference, have agreed to recommend and do recommend to 
     their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Federal 
     Aviation Administration Authorization Act of 1994''.
       (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Amendment of title 49, United States Code.

                TITLE I--AIRPORT AND AIRWAY IMPROVEMENT

Sec. 101. Airport improvement program.
Sec. 102. Airway improvement program.
Sec. 103. Operations of FAA.
Sec. 104. Innovative technology policy.
Sec. 105. Inclusion of explosive detection devices and universal access 
              systems.
Sec. 106. Submission and approval of project grant applications.
Sec. 107. Preventive maintenance.
Sec. 108. Repeal of general aviation airport project grant application 
              approval.
Sec. 109. Reports on impacts of new airport projects.
Sec. 110. Airport fees policy.
Sec. 111. Airport financial reports.
Sec. 112. Additional enforcement against illegal diversion of airport 
              revenue.
Sec. 113. Resolution of airport-air carrier disputes concerning airport 
              fees.
Sec. 114. Terminal development.
Sec. 115. Letters of intent.
Sec. 116. Military airport program.
Sec. 117. Terminal development costs.
Sec. 118. Airport safety data collection.
Sec. 119. Soundproofing and acquisition of certain residential 
              buildings and properties.
Sec. 120. Landing aids and navigational equipment inventory pool.
Sec. 121. Review of passenger facility charge program.

                   TITLE II--OTHER AVIATION PROGRAMS

Sec. 201. Term of office of FAA Administrator.
Sec. 202. Assistance to foreign aviation authorities.
Sec. 203. Use of passenger facility charges to meet Federal mandates.
Sec. 204. Passenger facility charges.
Sec. 205. Gambling on commercial aircraft.
Sec. 206. Slots for air carriers at airports.
Sec. 207. Air service termination notice.
Sec. 208. State taxation of air carrier employees.
Sec. 209. Foreign fee collection.

           TITLE III--RESEARCH, ENGINEERING, AND DEVELOPMENT

Sec. 301. Short title.
Sec. 302. Aviation research authorization of appropriations.
Sec. 303. Joint aviation research and development program.
Sec. 304. Aircraft cabin air quality research program.
Sec. 305. Use of domestic products.
Sec. 306. Purchase of American made equipment and products.
Sec. 307. Cooperative agreements for research, engineering, and 
              development.
Sec. 308. Research program on quiet aircraft technology.

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

Sec. 401. Expenditures from Airport and Airway Trust Fund.

                   TITLE V--MISCELLANEOUS PROVISIONS

Sec. 501. Rulemaking on random testing for prohibited drugs.
Sec. 502. Transportation security report.
Sec. 503. Repeal of annual report requirement.
Sec. 504. Advanced landing system.
Sec. 505. Asbestos removal and building demolition and removal, vacant 
              air force station, Marin County, California.
Sec. 506. Land acquisition costs.
Sec. 507. Information on disinsection of aircraft.
Sec. 508. Contract tower assistance.
Sec. 509. Discontinuation of aviation safety journal.
Sec. 510. Monroe airport improvement.
Sec. 511. Soldotna airport improvement.
Sec. 512. Sturgis, Kentucky.
Sec. 513. Rolla airport improvement.
Sec. 514. Palm Springs, California.
Sec. 515. Real estate transfers in Alaska and weather observation 
              services.
Sec. 516. Relocation of airway facilities.
Sec. 517. Safety at Aspen-Pitkin County Airport.
Sec. 518. Collective bargaining at Washington airports.
Sec. 519. Report on certain bilateral negotiations.
Sec. 520. Study on innovative financing.
Sec. 521. Safety of Juneau International Airport.
Sec. 522. Study on child restraint systems.
Sec. 523. Sense of Senate relating to DOT Inspector General.
Sec. 524. Sense of Senate on issuance of report on usage of radar at 
              the Cheyenne, Wyoming, airport.
Sec. 525. North Korea.
Sec. 526. Sense of Senate on final regulations under Civil Rights Act 
              of 1964.

            TITLE VI--INTRASTATE TRANSPORTATION OF PROPERTY

Sec. 601. Preemption of intrastate transportation of property.

     SEC. 2. DEFINITIONS.

       In this Act, the following definitions apply:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Federal Aviation Administration.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.

     SEC. 3. AMENDMENT OF 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--AIRPORT AND AIRWAY IMPROVEMENT

     SEC. 101. AIRPORT IMPROVEMENT PROGRAM.

       (a) Authorization of Appropriations.--Section 48103 is 
     amended--
       (1) by striking ``Not more'' and all that follows through 
     ``1993,'' and inserting ``The total amounts which shall be 
     available after September 30, 1981, to the Secretary of 
     Transportation''; and
       (2) by inserting before the period at the end ``shall be 
     $17,583,500,000 for fiscal years ending before October 1, 
     1994, $19,744,500,000 for fiscal years ending before October 
     1, 1995, and $21,958,500,000 for fiscal years ending before 
     October 1, 1996''.
       (b) Obligational Authority.--Section 47104(c) is amended by 
     striking ``After'' and all that follows through ``Secretary'' 
     and inserting ``After September 30, 1996, the Secretary''.

     SEC. 102. AIRWAY IMPROVEMENT PROGRAM.

       (a) Airway Facilities and Equipment.--Section 48101(a) is 
     amended--
       (1) in paragraph (1) by striking ``for'' and inserting 
     ``For'';
       (2) in paragraph (2)--
       (A) by striking ``for'' and inserting ``For''; and
       (B) by striking ``$11,100,000,000'' and inserting 
     ``$10,724,000,000'';
       (3) in paragraph (3)--
       (A) by striking ``for'' and inserting ``For''; and
       (B) by striking ``$14,000,000,000'' and inserting 
     ``$13,394,000,000''; and
       (4) by adding at the end the following:
       ``(4) For the fiscal years ending September 30, 1991-1996, 
     $16,129,000,000.''.
       (b) Certain Direct Costs and Joint Air Navigation 
     Services.--Section 48104 is amended--
       (1) in the heading for subsection (b) by inserting ``for 
     Fiscal Years 1993'' after ``Limitation'';
       (2) in subsection (b) by striking ``each'' and all that 
     follows through ``1995,'' and inserting ``fiscal year 1993''; 
     and
       (3) by adding at the end the following:
       ``(c) Limitation for Fiscal Years 1994-1996.--The amount 
     appropriated from the Trust Fund for the purposes of 
     paragraphs (1) and (2) of subsection (a) for each of fiscal 
     years 1994, 1995, and 1996 may not exceed the lesser of--
       ``(1) 50 percent of the amount of funds made available 
     under sections 48101-48103 of this title for such fiscal 
     year; or
       ``(2)(A) 70 percent of the amount of funds made available 
     under sections 106(k) and 48101-48103 of this title for such 
     fiscal year; less
       ``(B) the amount of funds made available under sections 
     48101-48103 of this title for such fiscal year.''.
       (c) Limitation on Obligating or Expending Funds.--Section 
     48108(c) is amended by striking ``1995'' and inserting 
     ``1996''.

     SEC. 103. OPERATIONS OF FAA.

       Section 106(k) is amended by striking ``, $5,100,000,000'' 
     and all that follows through ``1995'' and inserting ``, 
     $4,576,000,000 for fiscal year 1994, $4,674,000,000 for 
     fiscal year 1995, and $4,810,000,000 for fiscal year 1996''.

     SEC. 104. INNOVATIVE TECHNOLOGY POLICY.

       Section 47101(a) is amended--
       (1) by striking ``and'' at the end of paragraph (9)(C);
       (2) by striking the period at the end of paragraph (10) and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(11) that the airport improvement program should be 
     administered to encourage projects that employ innovative 
     technology, concepts, and approaches that will promote 
     safety, capacity, and efficiency improvements in the 
     construction of airports and in the air transportation system 
     (including the development and use of innovative concrete and 
     other materials in the construction of airport facilities to 
     minimize initial laydown costs, minimize time out of service, 
     and maximize lifecycle durability) and to encourage and 
     solicit innovative technology proposals and activities in the 
     expenditure of funding pursuant to this subchapter;''.

     SEC. 105. INCLUSION OF EXPLOSIVE DETECTION DEVICES AND 
                   UNIVERSAL ACCESS SYSTEMS.

       Section 47102(3)(B)(ii) is amended by inserting after ``or 
     security equipment'' the following: ``, including explosive 
     detection devices and universal access systems,''.

     SEC. 106. SUBMISSION AND APPROVAL OF PROJECT GRANT 
                   APPLICATIONS.

       Section 47105(a)(1)(B) is amended--
       (1) by striking ``at least 2'' each place it appears and 
     inserting ``1 or more''; and
       (2) by striking ``similar''.

     SEC. 107. PREVENTIVE MAINTENANCE.

       (a) Condition of Assistance.--Section 47105 is amended--
       (1) by redesignating subsection (e) as subsection (f); and
       (2) by inserting after subsection (d) the following new 
     subsection:
       ``(e) Preventive Maintenance.--After January 1, 1995, the 
     Secretary may approve an application under this subchapter 
     for the replacement or reconstruction of pavement at an 
     airport only if the sponsor has provided such assurances or 
     certifications as the Secretary may determine appropriate 
     that such airport has implemented an effective airport 
     pavement maintenance-management program. The Secretary may 
     require such reports on pavement condition and pavement 
     management programs as the Secretary determines may be 
     useful.''.
       (b) Study.--
       (1) In general.--The Secretary shall study the products 
     used for airport pavement maintenance and rehabilitation. 
     Such study shall consider, at a minimum, the cost and 
     benefits of the following:
       (A) A requirement that the manufacturer or installer of 
     such products provide minimum warranties.
       (B) Establishment of enhanced minimum specifications or 
     performance standards for such products.
       (C) The use of insurance or other means to improve the 
     performance and value of such products.
       (2) Solicitation of views.--In conducting the study under 
     this subsection, the Secretary shall solicit and consider the 
     views of airport operators, manufacturers of airport pavement 
     maintenance and rehabilitation products, installers of such 
     products, appropriate Federal agencies, and other relevant 
     persons.
       (3) Report.--Not later than June 1, 1995, the Secretary 
     shall report to the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on Public 
     Works and Transportation of the House of Representatives on 
     the results of the study conducted under this subsection.

     SEC. 108. REPEAL OF GENERAL AVIATION AIRPORT PROJECT GRANT 
                   APPLICATION APPROVAL.

       Section 47106 is amended--
       (1) by striking subsection (d); and
       (2) by redesignating subsection (e) as subsection (d).

     SEC. 109. REPORTS ON IMPACTS OF NEW AIRPORT PROJECTS.

       Section 47106 is amended by adding at the end the 
     following:
       ``(f) Reports Relating to Construction of Certain New Hub 
     Airports.--At least 90 days prior to the approval under this 
     subchapter of a project grant application for construction of 
     a new hub airport that is expected to have 0.25 percent or 
     more of the total annual enplanements in the United States, 
     the Secretary shall submit to Congress a report analyzing the 
     anticipated impact of such proposed new airport on--
       ``(1) the fees charged to air carriers (including landing 
     fees), and other costs that will be incurred by air carriers, 
     for using the proposed airport;
       ``(2) air transportation that will be provided in the 
     geographic region of the proposed airport; and
       ``(3) the availability and cost of providing air 
     transportation to rural areas in such geographic region.''.

     SEC. 110. AIRPORT FEES POLICY.

       Section 47101(a) is further amended by adding at the end 
     the following:
       ``(12) that airport fees, rates, and charges must be 
     reasonable and may only be used for purposes not prohibited 
     by this Act; and
       ``(13) that airports should be as self-sustaining as 
     possible under the circumstances existing at each particular 
     airport and in establishing new fees, rates, and charges, and 
     generating revenues from all sources, airport owners and 
     operators should not seek to create revenue surpluses that 
     exceed the amounts to be used for airport system purposes and 
     for other purposes for which airport revenues may be spent 
     under section 47107(b)(1) of this title, including reasonable 
     reserves and other funds to facilitate financing and cover 
     contingencies.''.

     SEC. 111. AIRPORT FINANCIAL REPORTS.

       (a) In General.--Section 47107(a) is amended--
       (1) by inserting before the semicolon at the end of 
     paragraph (15) ``and make such reports available to the 
     public'';
       (2) by striking ``and'' at the end of paragraph (17);
       (2) by striking the period at the end of paragraph (18) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(19) the airport owner or operator will submit to the 
     Secretary and make available to the public an annual report 
     listing in detail--
       ``(A) all amounts paid by the airport to any other unit of 
     government and the purposes for which each such payment was 
     made; and
       ``(B) all services and property provided to other units of 
     government and the amount of compensation received for 
     provision of each such service and property.''.
       (b) Format for Reporting.--Within 180 days after the date 
     of the enactment of this Act, the Secretary shall prescribe a 
     uniform simplified format for reporting that is applicable to 
     airports. Such format shall be designed to enable the public 
     to understand readily how funds are collected and spent at 
     airports, and to provide sufficient information relating to 
     total revenues, operating expenditures, capital expenditures, 
     debt service payments, contributions to restricted funds, 
     accounts, or reserves required by financing agreements or 
     covenants or airport lease or use agreements or covenants. 
     Such format shall require each commercial service airport to 
     report the amount of any revenue surplus, the amount of 
     concession-generated revenue, and other information as 
     required by the Secretary.
       (c) Annual Summaries.--Section 47107 is amended by adding 
     at the end the following:
       ``(k) Annual Summaries of Financial Reports.--The Secretary 
     shall provide to the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on Public 
     Works and Transportation of the House of Representatives an 
     annual summary of the reports submitted to the Secretary 
     under subsection (a)(19) of this section and under section 
     111(b) of the Federal Aviation Administration Authorization 
     Act of 1994.''.

     SEC. 112. ADDITIONAL ENFORCEMENT AGAINST ILLEGAL DIVERSION OF 
                   AIRPORT REVENUE.

       (a) New Policies And Procedures.--Section 47107 is further 
     amended by adding at the end the following:
       ``(l) Policies and Procedures To Ensure Enforcement Against 
     Illegal Diversion of Airport Revenue.--
       ``(1) In general.--Not later than 90 days after the date of 
     the enactment of this subsection, the Secretary of 
     Transportation shall establish policies and procedures that 
     will assure the prompt and effective enforcement of 
     subsections (a)(13) and (b) of this section and grant 
     assurances made under such subsections. Such policies and 
     procedures shall recognize the exemption provision in 
     subsection (b)(2) of this section and shall respond to the 
     information contained in the reports of the Inspector General 
     of the Department of Transportation on airport revenue 
     diversion and such other relevant information as the 
     Secretary may by law consider.
       ``(2) Revenue diversion.--Policies and procedures to be 
     established pursuant to paragraph (1) of this subsection 
     shall prohibit, at a minimum, the diversion of airport 
     revenues (except as authorized under subsection (b) of this 
     section) through--
       ``(A) direct payments or indirect payments, other than 
     payments reflecting the value of services and facilities 
     provided to the airport;
       ``(B) use of airport revenues for general economic 
     development, marketing, and promotional activities unrelated 
     to airports or airport systems;
       ``(C) payments in lieu of taxes or other assessments that 
     exceed the value of services provided; or
       ``(D) payments to compensate nonsponsoring governmental 
     bodies for lost tax revenues exceeding stated tax rates.
       ``(3) Efforts to be self-sustaining.--With respect to 
     subsection (a)(13) of this section, policies and procedures 
     to be established pursuant to paragraph (1) of this 
     subsection shall take into account, at a minimum, whether 
     owners and operators of airports, when entering into new or 
     revised agreements or otherwise establishing rates, charges, 
     and fees, have undertaken reasonable efforts to make their 
     particular airports as self-sustaining as possible under the 
     circumstances existing at such airports.
       ``(4) Administrative safeguards.--Policies and procedures 
     to be established pursuant to paragraph (1) shall mandate 
     internal controls, auditing requirements, and increased 
     levels of Department of Transportation personnel sufficient 
     to respond fully and promptly to complaints received 
     regarding possible violations of subsections (a)(13) and (b) 
     of this section and grant assurances made under such 
     subsections and to alert the Secretary to such possible 
     violations.''.
       (b) Withholding of Approval of Applications for Grants or 
     Passenger Facility Charges; Judicial Enforcement.--Section 
     47111 is amended by adding at the end the following:
       ``(e) Action on Grant Assurances Concerning Airport 
     Revenues.--If, after notice and opportunity for a hearing, 
     the Secretary finds a violation of section 47107(b) of this 
     title, as further defined by the Secretary under section 
     47107(l) of this title, or a violation of an assurance made 
     under section 47107(b) of this title, and the Secretary has 
     provided an opportunity for the airport sponsor to take 
     corrective action to cure such violation, and such corrective 
     action has not been taken within the period of time set by 
     the Secretary, the Secretary shall withhold approval of any 
     new grant application for funds under this chapter, or any 
     proposed modification to an existing grant that would 
     increase the amount of funds made available under this 
     chapter to the airport sponsor, and withhold approval of any 
     new application to impose a fee under section 40117 of this 
     title. Such applications may thereafter be approved only upon 
     a finding by the Secretary that such corrective action as the 
     Secretary requires has been taken to address the violation 
     and that the violation no longer exists.
       ``(f) Judicial Enforcement.--For any violation of this 
     chapter or any grant assurance made under this chapter, the 
     Secretary may apply to the district court of the United 
     States for any district in which the violation occurred for 
     enforcement. Such court shall have jurisdiction to enforce 
     obedience thereto by a writ of injunction or other process, 
     mandatory or otherwise, restraining any person from further 
     violation.''.
       (d) Civil Penalties.--
       (1) General penalty.--Section 46301(a) is amended--
       (A) in paragraph (1) by striking ``or 46303'' and inserting 
     ``46303, or 47107(b) (including any assurance made under such 
     section)''; and
       (B) by adding at the end the following:
       ``(5) In the case of a violation of section 47107(b) of 
     this title, the maximum civil penalty for a continuing 
     violation shall not exceed $50,000.''.
       (2) Administrative penalty.--Section 46301(d)(2) is amended 
     by striking ``or 46303'' and inserting ``46303, or 47107(b) 
     (as further defined by the Secretary under section 47107(l) 
     and including any assurance made under section 47107(b))''.
       (3) Procedures.--Section 46301(d)(7) is amended by adding 
     at the end the following:
       ``(D) In the case of a violation of section 47107(b) of 
     this title or any assurance made under such section--
       ``(i) a civil penalty shall not be assessed against an 
     individual;
       ``(ii) a civil penalty may be compromised as provided under 
     subsection (f); and
       ``(iii) judicial review of any order assessing a civil 
     penalty may be obtained only pursuant to section 46110 of 
     this title.''.
       (c) Consideration of Diversion of Revenues in Awarding 
     Discretionary Grants.--Section 47115 is amended by adding at 
     the end the following new subsection:
       ``(f) Consideration of Diversion of Revenues in Awarding 
     Discretionary Grants.--
       ``(1) General rule.--Subject to paragraph (2), in deciding 
     whether or not to distribute funds to an airport from the 
     discretionary funds established by subsection (a) of this 
     section and section 47116 of this title, the Secretary shall 
     consider as a factor militating against the distribution of 
     such funds to the airport the fact that the airport is using 
     revenues generated by the airport or by local taxes on 
     aviation fuel for purposes other than capital or operating 
     costs of the airport or the local airports system or other 
     local facilities which are owned or operated by the owner or 
     operator of the airport and directly and substantially 
     related to the actual air transportation of passengers of 
     property.
       ``(2) Required finding.--Paragraph (1) shall apply only 
     when the Secretary finds that the amount of revenues used by 
     the airport for purposes other than capital or operating 
     costs in the airport's fiscal year preceding the date of the 
     application for discretionary funds exceeds the amount of 
     such revenues in the airport's first fiscal year ending after 
     the date of the enactment of this subsection, adjusted by the 
     Secretary for changes in the Consumer Price Index of All 
     Urban Consumers published by the Bureau of Labor Statistics 
     of the Department of Labor.''.
       (d) Unreasonable Burden on Interstate Commerce.--Section 
     40116(d)(2)(A) is amended by adding at the end the following:
       ``(iv) Levy or collect a tax, fee, or charge, first taking 
     effect after the date of the enactment of this clause, 
     exclusively upon any business located at a commercial service 
     airport or operating as a permittee of such an airport other 
     than a tax, fee, or charge wholly utilized for airport or 
     aeronautical purposes.''.

     SEC. 113. RESOLUTION OF AIRPORT-AIR CARRIER DISPUTES 
                   CONCERNING AIRPORT FEES.

       (a) In General.--Subchapter I of chapter 471 of subtitle 
     VII is amended--
       (1) by redesignating section 47129 (and any references 
     thereto) as section 47131; and
       (2) by adding at the end the following new section:

     ``Sec. 47129. Resolution of airport-air carrier disputes 
       concerning airport fees

       ``(a) Authority To Request Secretary's Determination.--
       ``(1) In general.--The Secretary of Transportation shall 
     issue a determination as to whether a fee imposed upon one or 
     more air carriers (as defined in section 40102 of this 
     subtitle) by the owner or operator of an airport is 
     reasonable if--
       ``(A) a written request for such determination is filed 
     with the Secretary by such owner or operator; or
       ``(B) a written complaint requesting such determination is 
     filed with the Secretary by an affected air carrier within 60 
     days after such carrier receives written notice of the 
     establishment or increase of such fee.
       ``(2) Calculation of fee.--A fee subject to a determination 
     of reasonableness under this section may be calculated 
     pursuant to either a compensatory or residual fee methodology 
     or any combination thereof.
       ``(3) Secretary not to set fee.--In determining whether a 
     fee is reasonable under this section, the Secretary may only 
     determine whether the fee is reasonable or unreasonable and 
     shall not set the level of the fee.
       ``(b) Procedural Regulations.--Not later than 90 days after 
     the date of the enactment of this section, the Secretary 
     shall publish in the Federal Register final regulations, 
     policy statements, or guidelines establishing--
       ``(1) the procedures for acting upon any written request or 
     complaint filed under subsection (a)(1); and
       ``(2) the standards or guidelines that shall be used by the 
     Secretary in determining under this section whether an 
     airport fee is reasonable.
       ``(c) Decisions By Secretary.--The final regulations, 
     policy statements, or guidelines required in subsection (b) 
     shall provide the following:
       ``(1) Not more than 120 days after an air carrier files 
     with the Secretary a written complaint relating to an airport 
     fee, the Secretary shall issue a final order determining 
     whether such fee is reasonable.
       ``(2) Within 30 days after such complaint is filed with the 
     Secretary, the Secretary shall dismiss the complaint if no 
     significant dispute exists or shall assign the matter to an 
     administrative law judge; and thereafter the matter shall be 
     handled in accordance with part 302 of title 14, Code of 
     Federal Regulations, or as modified by the Secretary to 
     ensure an orderly disposition of the matter within the 120-
     day period and any specifically applicable provisions of this 
     section.
       ``(3) The administrative law judge shall issue a 
     recommended decision within 60 days after the complaint is 
     assigned or within such shorter period as the Secretary may 
     specify.
       ``(4) If the Secretary, upon the expiration of 120 days 
     after the filing of the complaint, has not issued a final 
     order, the decision of the administrative law judge shall be 
     deemed to be the final order of the Secretary.
       ``(5) Any party to the dispute may seek review of a final 
     order of the Secretary under this subsection in the Circuit 
     Court of Appeals for the District of Columbia Circuit or the 
     court of appeals in the circuit where the airport which gives 
     rise to the written complaint is located.
       ``(6) Any findings of fact in a final order of the 
     Secretary under this subsection, if supported by substantial 
     evidence, shall be conclusive if challenged in a court 
     pursuant to this subsection. No objection to such a final 
     order shall be considered by the court unless objection was 
     urged before an administrative law judge or the Secretary at 
     a proceeding under this subsection or, if not so urged, 
     unless there were reasonable grounds for failure to do so.
       ``(d) Payment Under Protest; Guarantee of Air Carrier 
     Access.--
       ``(1) Payment under protest.--
       ``(A) In general.--Any fee increase or newly established 
     fee which is the subject of a complaint that is not dismissed 
     by the Secretary shall be paid by the complainant air carrier 
     to the airport under protest.
       ``(B) Referral or credit.--Any amounts paid under this 
     subsection by a complainant air carrier to the airport under 
     protest shall be subject to refund or credit to the air 
     carrier in accordance with directions in the final order of 
     the Secretary within 30 days of such order.
       ``(C) Assurance of timely repayment.--In order to assure 
     the timely repayment, with interest, of amounts in dispute 
     determined not to be reasonable by the Secretary, the airport 
     shall obtain a letter of credit, or surety bond, or other 
     suitable credit facility, equal to the amount in dispute that 
     is due during the 120-day period established by this section, 
     plus interest, unless the airport and the complainant air 
     carrier agree otherwise.
       ``(D) Deadline.--The letter of credit, or surety bond, or 
     other suitable credit facility shall be provided to the 
     Secretary within 20 days of the filing of the complaint and 
     shall remain in effect for 30 days after the earlier of 120 
     days or the issuance of a timely final order by the Secretary 
     determining whether such fee is reasonable.
       ``(2) Guarantee of air carrier access.--Contingent upon an 
     air carrier's compliance with the requirements of paragraph 
     (1) and pending the issuance of a final order by the 
     Secretary determining the reasonableness of a fee that is the 
     subject of a complaint filed under subsection (a)(1)(B), an 
     owner or operator of an airport may not deny an air carrier 
     currently providing air service at the airport reasonable 
     access to airport facilities or service, or otherwise 
     interfere with an air carrier's prices, routes, or services, 
     as a means of enforcing the fee.
       ``(e) Applicability.--This section does not apply to--
       ``(1) a fee imposed pursuant to a written agreement with 
     air carriers using the facilities of an airport;
       ``(2) a fee imposed pursuant to a financing agreement or 
     covenant entered into prior to the date of the enactment of 
     this section; or
       ``(3) any other existing fee not in dispute as of such date 
     of enactment.
       ``(f) Effect On Existing Agreements.--Nothing in this 
     section shall adversely affect--
       ``(1) the rights of any party under any existing written 
     agreement between an air carrier and the owner or operator of 
     an airport; or
       ``(2) the ability of an airport to meet its obligations 
     under a financing agreement, or covenant, that is in force as 
     of the date of the enactment of this section.
       ``(g) Definition.--In this section, the term `fee' means 
     any rate, rental charge, landing fee, or other service charge 
     for the use of airport facilities.''.
       (b) Conforming Amendment.--The analysis to such chapter is 
     amended--
       (1) by striking ``47129'' and inserting ``47131''; and
       (2) by inserting after the item relating to section 47128 
     the following:

``47129. Resolution of airport-air carrier disputes concerning airport 
              fees.''.

     SEC. 114. TERMINAL DEVELOPMENT.

       Section 47109 is amended--
       (1) in subsection (a) by striking ``subsections (b) and 
     (c)'' and inserting ``subsection (b)''; and
       (2) by striking subsection (c).

     SEC. 115. LETTERS OF INTENT.

       Section 47110(e) is amended by adding at the end the 
     following:
       ``(6) Limitation on statutory construction.--Nothing in 
     this section shall be construed to prohibit the obligation of 
     amounts pursuant to a letter of intent under this subsection 
     in the same fiscal year as the letter of intent is issued.''.

     SEC. 116. MILITARY AIRPORT PROGRAM.

       (a) Military Airport Set-Aside.--Section 47117(e)(1)(E) is 
     amended by striking ``and 1995'' and inserting ``, 1995, and 
     1996''.
       (b) Designation of Military Airports.--Section 47118(a) is 
     amended--
       (1) by striking ``12'' and inserting ``15''; and
       (2) by adding at the end the following: ``The Secretary may 
     only designate an airport for such grants (other than an 
     airport designated for such grants on or before the date of 
     the enactment of this sentence) if the Secretary finds that 
     grants under such section for projects at such airport would 
     reduce delays at an airport with more than 20,000 hours of 
     annual delays in commercial passenger aircraft takeoffs and 
     landings.''.
       (c) Elimination of Extension of 5-Year Period of 
     Eligibility.--Section 47118(d) is amended by striking the 
     last sentence.
       (d) Construction of Parking Lots, Fuel Farms, and 
     Utilities.--Section 47118(f) is amended by striking ``-1995'' 
     and inserting ``-1996''.

     SEC. 117. TERMINAL DEVELOPMENT COSTS.

       Section 47119 is amended--
       (1) in subsection (a) by inserting ``or, in the case of a 
     commercial service airport which annually had less than 0.05 
     percent of the total enplanements in the United States, 
     between January 1, 1992, and October 31, 1992,'' after ``July 
     12, 1976,''; and
       (2) by adding at the end the following:
       ``(c) Nonhub Airports.--With respect to a project at a 
     commercial service airport which annually has less than 0.05 
     percent of the total enplanements in the United States, the 
     Secretary may approve the use of the amounts described in 
     subsection (a) notwithstanding the requirements of sections 
     47107(a)(17), 47112, and 47113.''.

     SEC. 118. AIRPORT SAFETY DATA COLLECTION.

       (a) In General.--Chapter 471 of subtitle VII is further 
     amended by inserting after section 47129 the following:

     ``Sec. 47130. Airport safety data collection

       ``Notwithstanding any other provision of law, the 
     Administrator of the Federal Aviation Administration may 
     contract, using sole source or limited source authority, for 
     the collection of airport safety data.''.
       (b) Clerical Amendment.--The analysis for such chapter 471 
     is further amended by inserting after the item relating to 
     section 47129 the following:

``47130. Airport safety data collection.''.

     SEC. 119. SOUNDPROOFING AND ACQUISITION OF CERTAIN 
                   RESIDENTIAL BUILDINGS AND PROPERTIES.

       Section 47504(c) is amended--
       (1) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (3), (4), and (5), respectively;
       (2) by inserting after paragraph (1) the following:
       ``(2) Soundproofing and acquisition of certain residential 
     buildings and properties.--The Secretary may incur 
     obligations to make grants from amounts made available under 
     section 48103 of this title--
       ``(A) for projects to soundproof residential buildings--
       ``(i) if the airport operator received approval for a grant 
     for a project to soundproof residential buildings pursuant to 
     section 301(d)(4)(B) of the Airport and Airway Safety and 
     Capacity Expansion Act of 1987;
       ``(ii) if the airport operator submits updated noise 
     exposure contours, as required by the Secretary; and
       ``(iii) if the Secretary determines that the proposed 
     projects are compatible with the purposes of this chapter; 
     and
       ``(B) to an airport operator and unit of local government 
     referred to in paragraph (1)(A) or (1)(B) of this subsection 
     to soundproof residential buildings located on residential 
     properties, and to acquire residential properties, at which 
     noise levels are not compatible with normal operations of an 
     airport--
       ``(i) if the airport operator amended an existing local 
     aircraft noise regulation during calendar year 1993 to 
     increase the maximum permitted noise levels for scheduled air 
     carrier aircraft as a direct result of implementation of 
     revised aircraft noise departure procedures mandated for 
     aircraft safety purposes by the Administrator of the Federal 
     Aviation Administration for standardized application at 
     airports served by scheduled air carriers;
       ``(ii) if the airport operator submits updated noise 
     exposure contours, as required by the Secretary; and
       ``(iii) if the Secretary determines that the proposed 
     projects are compatible with the purposes of this chapter.''; 
     and
       (3) in paragraph (4), as so redesignated, by striking 
     ``paragraph (1) of''.

     SEC. 120. LANDING AIDS AND NAVIGATIONAL EQUIPMENT INVENTORY 
                   POOL.

       (a) Purchase.--Section 44502(a) is amended by adding at the 
     end the following new paragraph:
       ``(4) Purchase of instrument landing system.--
       ``(A) Establishment of program.--The Secretary shall 
     purchase precision approach instrument landing system 
     equipment for installation at airports on an expedited basis.
       ``(B) Authorization.--No less than $30,000,000 of the 
     amounts appropriated under section 48101(a) for each of 
     fiscal years 1995 and 1996 shall be used for the purpose of 
     carrying out this paragraph, including acquisition, site 
     preparation work, installation, and related expenditures.''.
       (b) Cost Savings Associated With Purchase.--Notwithstanding 
     other provisions of law or regulations to the contrary, the 
     Administrator shall establish, within 120 days after the date 
     of the enactment of this Act, a process through which airport 
     sponsors may take advantage of cost savings associated with 
     the purchase and installation of instrument landing systems, 
     along with associated equipment, under existing or future 
     Federal Aviation Administration contracts. The process 
     established by the Administrator may provide for the direct 
     reimbursement (including administrative costs) of the 
     Administrator by an airport sponsor using grants funds under 
     subchapter I of chapter 471 of subtitle VII of title 49, 
     United States Code, relating to airport improvement, for the 
     ordering of such equipment and installation or for the direct 
     ordering of such equipment and installation by an airport 
     sponsor, using such grant funds, from the suppliers with 
     which the Administrator has contracted.

     SEC. 121. REVIEW OF PASSENGER FACILITY CHARGE PROGRAM.

       The Secretary shall conduct a review of section 158.49(b) 
     of title 14, Code of Federal Regulations, to assess the 
     effectiveness of such section in light of the objectives of 
     section 40117 of title 49, United States Code, and shall take 
     such corrective action as the Secretary determines to be 
     necessary to address any problems discovered in the review.
                   TITLE II--OTHER AVIATION PROGRAMS

     SEC. 201. TERM OF OFFICE OF FAA ADMINISTRATOR.

       Section 106(b) is amended by adding at the end the 
     following: ``The term of office for any individual appointed 
     as Administrator after the date of the enactment of this 
     sentence shall be 5 years.''.

     SEC. 202. ASSISTANCE TO FOREIGN AVIATION AUTHORITIES.

       Section 40113 is amended by adding at the end the following 
     new subsection:
       ``(e) Assistance To Foreign Aviation Authorities.--
       ``(1) Safety-related training and operational services.--
     The Administrator may provide safety-related training and 
     operational services to foreign aviation authorities with or 
     without reimbursement, if the Administrator determines that 
     providing such services promotes aviation safety. To the 
     extent practicable, air travel reimbursed under this 
     subsection shall be conducted on United States air carriers.
       ``(2) Reimbursement sought.--The Administrator shall 
     actively seek reimbursement for services provided under this 
     subsection from foreign aviation authorities capable of 
     providing such reimbursement.
       ``(3) Crediting appropriations.--Funds received by the 
     Administrator pursuant to this section shall be credited to 
     the appropriation from which the expenses were incurred in 
     providing such services.
       ``(4) Reporting.--Not later than December 31, 1995, and 
     annually thereafter, the Administrator shall transmit to 
     Congress a list of the foreign aviation authorities to which 
     the Administrator provided services under this subsection in 
     the preceding fiscal year. Such list shall specify the dollar 
     value of such services and any reimbursement received for 
     such services.''.

     SEC. 203. USE OF PASSENGER FACILITY CHARGES TO MEET FEDERAL 
                   MANDATES.

       Section 40117(a)(3) is amended--
       (1) by striking ``and'' at end of subparagraph (D);
       (2) by striking the period at the end of subparagraph (E) 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(F) in addition to projects eligible under subparagraph 
     (A), the construction, reconstruction, repair, or improvement 
     of areas of an airport used for the operation of aircraft or 
     actions to mitigate the environmental effects of such 
     construction, reconstruction, repair, or improvement when the 
     construction, reconstruction, repair, improvement, or action 
     is necessary for compliance with the responsibilities of the 
     operator or owner of the airport under the Americans with 
     Disabilities Act of 1990, the Clean Air Act, or the Federal 
     Water Pollution Control Act with respect to the airport.''.

     SEC. 204. PASSENGER FACILITY CHARGES.

       (a) Clarification of Applicability.--
       (1) General rule.--Section 40117(e)(2) is amended--
       (A) by striking ``and'' at the end of subparagraph (B);
       (B) by striking the period at the end of subparagraph 
     (C)(ii) and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(D) enplaning at an airport if the passenger did not pay 
     for the air transportation which resulted in such 
     enplanement, including any case in which the passenger 
     obtained the ticket for the air transportation with a 
     frequent flier award coupon without monetary payment.''.
       (2) Limitation on statutory construction.--The amendment 
     made by paragraph (1) shall not be construed as requiring any 
     person to refund any fee paid before the date of the 
     enactment of this Act.
       (b) Use of Revenues and Relationship Between Fees and 
     Revenues.--Section 40117(d) is amended--
       (1) by striking ``and'' at the end of paragraph (1);
       (2) by striking the period at the end of paragraph (2)(C) 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(3) the application includes adequate justification for 
     each of the specific projects.''.

     SEC. 205. GAMBLING ON COMMERCIAL AIRCRAFT.

       (a) In General.--
       (1) Restrictions.--Chapter 413 of subtitle VII is amended 
     by adding at the end the following:

     ``Sec. 41311. Gambling restrictions

       ``(a) In General.--An air carrier or foreign air carrier 
     may not install, transport, or operate, or permit the use of, 
     any gambling device on board an aircraft in foreign air 
     transportation.
       ``(b) Definition.--In this section, the term `gambling 
     device' means any machine or mechanical device (including 
     gambling applications on electronic interactive video systems 
     installed on board aircraft for passenger use)--
       ``(1) which when operated may deliver, as the result of the 
     application of an element of chance, any money or property; 
     or
       ``(2) by the operation of which a person may become 
     entitled to receive, as the result of the application of an 
     element of chance, any money or property.''.
       (2) Clerical amendment.--The analysis of such chapter 413 
     is amended by inserting at the end the following new item:

``41311. Gambling restrictions.''.

       (b) Study of Gambling on Commercial Aircraft.--Not later 
     than 1 year after the date of the enactment of this Act, the 
     Secretary shall complete a study of--
       (1) the aviation safety effects of gambling applications on 
     electronic interactive video systems installed on board 
     aircraft for passenger use, including an evaluation of the 
     effect of such systems on the navigational and other 
     electronic equipment of the aircraft, on the passengers and 
     crew of the aircraft, and on issues relating to the method of 
     payment;
       (2) the competitive implications of permitting foreign air 
     carriers only, but not United States air carriers, to 
     install, transport, and operate gambling applications on 
     electronic interactive video systems on board aircraft in the 
     foreign commerce of the United States on flights over 
     international waters, or in fifth freedom city-pair markets; 
     and
       (3) whether gambling should be allowed on international 
     flights, including proposed legislation to effectuate any 
     recommended changes in existing law.

     The Secretary shall, within 5 days after the completion of 
     the study, submit a report to the Committee on Commerce, 
     Science, and Transportation of the Senate and the Committee 
     on Public Works and Transportation of the House of 
     Representatives on the results of the study.

     SEC. 206. SLOTS FOR AIR CARRIERS AT AIRPORTS.

       (a) Availability of Slots.--
       (1) In general.--Subchapter I of chapter 417 of subtitle 
     VII is amended by adding at the end the following:

     ``Sec. 41714. Availability of slots

       ``(a) Making Slots Available for Essential Air Service.--
       ``(1) Operational authority.--If basic essential air 
     service under subchapter II of this chapter is to be provided 
     from an eligible point to a high density airport (other than 
     Washington National Airport), the Secretary of Transportation 
     shall ensure that the air carrier providing or selected to 
     provide such service has sufficient operational authority at 
     the high density airport to provide such service. The 
     operational authority shall allow flights at reasonable times 
     taking into account the needs of passengers with connecting 
     flights.
       ``(2) Exemptions.--If necessary to carry out the objectives 
     of paragraph (1), the Secretary shall by order grant 
     exemptions from the requirements of subparts K and S of part 
     93 of title 14, Code of Federal Regulations (pertaining to 
     slots at high density airports), to air carriers using Stage 
     3 aircraft or to commuter air carriers, unless such an 
     exemption would significantly increase operational delays.
       ``(3) Assurance of access.--If the Secretary finds that an 
     exemption under paragraph (2) would significantly increase 
     operational delays, the Secretary shall take such action as 
     may be necessary to ensure that an air carrier providing or 
     selected to provide basic essential air service is able to 
     obtain access to a high density airport; except that the 
     Secretary shall not be required to make slots available at 
     O'Hare International Airport in Chicago, Illinois, if the 
     number of slots available for basic essential air service 
     (including slots specifically designated as essential air 
     service slots and slots used for such purposes) to and from 
     such airport is at least 132 slots.
       ``(4) Action by the secretary.--The Secretary shall issue a 
     final order under this subsection on or before the 60th day 
     after receiving a request from an air carrier for operational 
     authority under this subsection.
       ``(b) Slots for Foreign Air Transportation.--
       ``(1) Exemptions.--If the Secretary finds it to be in the 
     public interest at a high density airport (other than 
     Washington National Airport), the Secretary may grant by 
     order exemptions from the requirements of subparts K and S of 
     part 93 of title 14, Code of Federal Regulations (pertaining 
     to slots at high density airports), to enable air carriers 
     and foreign air carriers to provide foreign air 
     transportation using Stage 3 aircraft.
       ``(2) Slot withdrawals.--The Secretary may not withdraw a 
     slot from an air carrier in order to allocate that slot to a 
     carrier to provide foreign air transportation if the 
     withdrawal of that slot would result in the withdrawal of 
     slots from an air carrier at O'Hare International Airport 
     under section 93.223 of title 14, Code of Federal 
     Regulations, in excess of the total withdrawn from that air 
     carrier as of October 31, 1993.
       ``(3) Equivalent rights of access.--The Secretary shall not 
     take a slot at a high density airport from an air carrier and 
     award such slot to a foreign air carrier if the Secretary 
     determines that air carriers are not provided equivalent 
     rights of access to airports in the country of which such 
     foreign air carrier is a citizen.
       ``(4) Period of effectiveness.--This subsection and 
     exemptions issued under this subsection shall cease to be in 
     effect when the final rules issued under subsection (f) 
     become effective.
       ``(c) Slots for New Entrants.--
       ``(1) In general.--If the Secretary finds it to be in the 
     public interest and the circumstances to be exceptional, the 
     Secretary may by order grant exemptions from the requirements 
     under subparts K and S of part 93 of title 14, Code of 
     Federal Regulations (pertaining to slots at high density 
     airports), to enable new entrant air carriers to provide air 
     transportation at high density airports (other than 
     Washington National Airport).
       ``(2) Period of effectiveness.--Exemptions issued under 
     this subsection shall cease to be in effect on or after the 
     date on which the final rules issued under subsection (f) 
     become effective.
       ``(d) Special Rules for Washington National Airport.--
       (1) In general.--Notwithstanding sections 6005(c)(5) and 
     6009(e) of the Metropolitan Washington Airports Act of 1986, 
     or any provision of this section, the Secretary may, only 
     under circumstances determined by the Secretary to be 
     exceptional, grant by order to an air carrier currently 
     holding or operating a slot at Washington National Airport an 
     exemption from requirements under subparts K and S of part 93 
     of title 14, Code of Federal Regulations (pertaining to slots 
     at Washington National Airport), to enable that carrier to 
     provide air transportation with Stage 3 aircraft at 
     Washington National Airport; except that such exemption shall 
     not--
       ``(A) result in an increase in the total number of slots 
     per day at Washington National Airport;
       ``(B) result in an increase in the total number of slots at 
     Washington National Airport from 7:00 ante meridiem to 9:59 
     post meridiem;
       ``(C) increase the number of operations at Washington 
     National Airport in any 1-hour period by more than 2 
     operations;
       ``(D) result in the withdrawal or reduction of slots 
     operated by an air carrier;
       ``(E) result in a net increase in noise impact on 
     surrounding communities resulting from changes in timing of 
     operations permitted under this subsection; and
       ``(F) continue in effect on or after the date on which the 
     final rules issued under subsection (f) become effective.
       ``(2) Limitation on applicability.--Nothing in this 
     subsection shall adversely affect Exemption No. 5133, as from 
     time-to-time amended and extended.
       ``(e) Study.--
       ``(1) Matters to be considered.--The Secretary shall 
     continue the Secretary's current examination of slot 
     regulations and shall ensure that the examination includes 
     consideration of--
       ``(A) whether improvements in technology and procedures of 
     the air traffic control system and the use of quieter 
     aircraft make it possible to eliminate the limitations on 
     hourly operations imposed by the high density rule contained 
     in part 93 of title 14 of the Code of Federal Regulations or 
     to increase the number of operations permitted under such 
     rule;
       ``(B) the effects of the elimination of limitations or an 
     increase in the number of operations allowed on each of the 
     following:
       ``(i) congestion and delay in any part of the national 
     aviation system;
       ``(ii) the impact of noise on persons living near the 
     airport;
       ``(iii) competition in the air transportation system;
       ``(iv) the profitability of operations of airlines serving 
     the airport; and
       ``(v) aviation safety;
       ``(C) the impact of the current slot allocation process 
     upon the ability of air carriers to provide essential air 
     service under subchapter II of this chapter;
       ``(D) the impact of such allocation process upon the 
     ability of new entrant air carriers to obtain slots in time 
     periods that enable them to provide service;
       ``(E) the impact of such allocation process on the ability 
     of foreign air carriers to obtain slots;
       ``(F) the fairness of such process to air carriers and the 
     extent to which air carriers are provided equivalent rights 
     of access to the air transportation market in the countries 
     of which foreign air carriers holding slots are citizens;
       ``(G) the impact, on the ability of air carriers to provide 
     domestic and international air service, of the withdrawal of 
     slots from air carriers in order to provide slots for foreign 
     air carriers; and
       ``(H) the impact of the prohibition on slot withdrawals in 
     subsections (b)(2) and (b)(3) of this section on the aviation 
     relationship between the United States Government and foreign 
     governments, including whether the prohibition in such 
     subsections will require the withdrawal of slots from general 
     and military aviation in order to meet the needs of air 
     carriers and foreign air carriers providing foreign air 
     transportation (and the impact of such withdrawal on general 
     aviation and military aviation) and whether slots will become 
     available to meet the needs of air carriers and foreign air 
     carriers to provide foreign air transportation as a result of 
     the planned relocation of Air Force Reserve units and the Air 
     National Guard at O'Hare International Airport.
       ``(2) Report.--Not later than January 31, 1995, the 
     Secretary shall complete the current examination of slot 
     regulations and shall transmit to the Committee on Commerce, 
     Science, and Transportation of the Senate and the Committee 
     on Public Works and Transportation of the House of 
     Representatives a report containing the results of such 
     examination.
       ``(f) Rulemaking.--The Secretary shall conduct a rulemaking 
     proceeding based on the results of the study described in 
     subsection (e). In the course of such proceeding, the 
     Secretary shall issue a notice of proposed rulemaking not 
     later than August 1, 1995, and shall issue a final rule not 
     later than 90 days after public comments are due on the 
     notice of proposed rulemaking.
       ``(g) Weekend Operations.--The Secretary shall consider the 
     advisability of revising section 93.227 of title 14, Code of 
     Federal Regulations, so as to eliminate weekend schedules 
     from the determination of whether the 80 percent standard of 
     subsection (a)(1) of that section has been met.
       ``(h) Definitions.--In this section and section 41734(h), 
     the following definitions apply:
       ``(1) Commuter air carrier.--The term `commuter air 
     carrier' means a commuter operator as defined or applied in 
     subpart K or S of part 93 of title 14, Code of Federal 
     Regulations.
       ``(2) High density airport.--The term `high density 
     airport' means an airport at which the Administrator limits 
     the number of instrument flight rule takeoffs and landings of 
     aircraft.
       ``(3) New entrant air carrier.--The term `new entrant air 
     carrier' means an air carrier that does not hold a slot at 
     the airport concerned and has never sold or given up a slot 
     at that airport after December 16, 1985, and a limited 
     incumbent carrier as defined in subpart S of part 93 of title 
     14, Code of Federal Regulations.
       ``(4) Slot.--The term `slot' means a reservation for an 
     instrument flight rule takeoff or landing by an air carrier 
     of an aircraft in air transportation.''.
       (b) Clerical Amendment.--The analysis for chapter 417 of 
     subtitle VII is amended by inserting after the item relating 
     to section 41713 the following:

``41714. Availability of slots.''.
       (c) Nonconsideration of Slot Availability.--Section 41734 
     is amended by adding at the end the following:
       ``(h) Nonconsideration of Slot Availability.--In 
     determining what is basic essential air service and in 
     selecting an air carrier to provide such service, the 
     Secretary shall not consider as a factor whether slots at a 
     high density airport are available for providing such 
     service.''.

     SEC. 207. AIR SERVICE TERMINATION NOTICE.

       (a) In General.--Subchapter I of chapter 417 of subtitle 
     VII is further amended by adding at the end the following new 
     section:

     ``Sec. 41715. Air service termination notice

       ``(a) In General.--An air carrier may not terminate 
     interstate air transportation from a nonhub airport included 
     on the Secretary's latest published list of such airports, 
     unless such air carrier has given the Secretary at least 45 
     days' notice before such termination.
       ``(b) Exceptions.--The requirements of subsection (a) shall 
     not apply when--
       ``(1) the carrier involved is experiencing a sudden or 
     unforeseen financial emergency, including natural weather 
     related emergencies, equipment-related emergencies, and 
     strikes;
       ``(2) the termination of transportation is made for 
     seasonal purposes only;
       ``(3) the carrier involved has operated at the affected 
     nonhub airport for 180 days or less;
       ``(4) the carrier involved provides other transportation by 
     jet from another airport serving the same community as the 
     affected nonhub airport; or
       ``(5) the carrier involved makes alternative arrangements, 
     such as a change of aircraft size, or other types of 
     arrangements with a part 121 or part 135 air carrier, that 
     continues uninterrupted service from the affected nonhub 
     airport.
       ``(c) Waivers for Regional/Commuter Carriers.--Before 
     January 1, 1995, the Secretary shall establish terms and 
     conditions under which regional/commuter carriers can be 
     excluded from the termination notice requirement.
       ``(d) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Nonhub airport.--The term `nonhub airport' has the 
     meaning that term has under section 41731(a)(3).
       ``(2) Part 121 air carrier.--The term `part 121 air 
     carrier' means an air carrier to which part 121 of title 14, 
     Code of Federal Regulations, applies.
       ``(3) Part 135 air carrier.--The term `part 135 air 
     carrier' means an air carrier to which part 135 of title 14, 
     Code of Federal Regulations, applies.
       ``(4) Regional/commuter carriers.--The term `regional/
     commuter carrier' means--
       ``(A) a part 135 air carrier; or
       ``(B) a part 121 air carrier that provides air 
     transportation exclusively with aircraft having a seating 
     capacity of no more than 70 passengers.
       ``(5) Termination.--The term `termination' means the 
     cessation of all service at an airport by an air carrier.''.
       (b) Conforming Amendments.--The analysis of such chapter 
     417 is amended by inserting after the item relating to 
     section 41713 the following new item:

``41715. Air service termination notice.''.

       (c) Civil Penalties.--Section 46301(a) is amended--
       (1) in paragraph (1)(A) by striking ``or 46303'' and 
     inserting ``46303, or 41715'';
       (2) in paragraph (4) by inserting ``(other than a violation 
     of section 41715)'' after ``violation'' the second and third 
     place it appears; and
       (3) by adding at the end the following:
       ``(5) Notwithstanding paragraph (1), the maximum civil 
     penalty for violating section 41715 shall be $5,000 instead 
     of $1,000.''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on February 1, 1995.

     SEC. 208. STATE TAXATION OF AIR CARRIER EMPLOYEES.

       Section 40116(f) is amended by adding at the end the 
     following:
       ``(3) Compensation paid by an air carrier to an employee 
     described in subsection (a) in connection with such 
     employee's authorized leave or other authorized absence from 
     regular duties on the carrier's aircraft in order to perform 
     services on behalf of the employee's airline union shall be 
     subject to the income tax laws of only the following:
       ``(A) The State or political subdivision of the State that 
     is the residence of the employee.
       ``(B) The State or political subdivision of the State in 
     which the employee's scheduled flight time would have been 
     more than 50 percent of the employee's total scheduled flight 
     time for the calendar year had the employee been engaged full 
     time in the performance of regularly assigned duties on the 
     carrier's aircraft.''.

     SEC. 209. FOREIGN FEE COLLECTION.

       Section 45301 is amended--
       (1) in subsection (b) by striking ``This section'' and 
     inserting ``Subsection (a)''; and
       (2) by adding at the end the following:
       ``(c) Recovery of Cost of Foreign Aviation Services.--
       ``(1) Establishment of fees.--The Administrator may 
     establish and collect fees for providing or carrying out the 
     following aviation services outside the United States: any 
     test, authorization, certificate, permit, rating, evaluation, 
     approval, inspection, review.
       ``(2) Foreign repair station certification and inspection 
     fees.--The Administrator must establish and collect under 
     this subsection fees for certification and inspection of 
     repair stations outside of the United States.
       ``(3) Level of fees.--Fees shall be established under this 
     subsection as necessary to recover the additional cost of 
     providing or carrying out such services outside the United 
     States, as compared to the cost of providing or carrying out 
     such services within the United States; except that the 
     Administrator may for such services as the Administrator 
     designates (and shall for certification and inspection of 
     repair stations outside the United States) establish fees at 
     a level necessary to recover the full cost of providing such 
     services.
       ``(4) Effect on other authority.--The provisions of this 
     subsection do not limit the Administrator's authority to 
     establish and collect fees under subsection (a).
       ``(5) Crediting of preestablished fees.--Fees described in 
     paragraph (1) that were not established before the date of 
     the enactment of this subsection may be credited in 
     accordance with section 45302(d).''.
           TITLE III--RESEARCH, ENGINEERING, AND DEVELOPMENT

     SEC. 301. SHORT TITLE.

       This title may be cited as the ``Federal Aviation 
     Administration Research, Engineering, and Development 
     Authorization Act of 1994''.

     SEC. 302. AVIATION RESEARCH AUTHORIZATION OF APPROPRIATIONS.

       Section 48102(a) of title 49, United States Code, is 
     amended by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) for fiscal year 1995--
       ``(A) $7,673,000 for management and analysis projects and 
     activities;
       ``(B) $80,901,000 for capacity and air traffic management 
     technology projects and activities;
       ``(C) $39,242,000 for communications, navigation, and 
     surveillance projects and activities;
       ``(D) $2,909,000 for weather projects and activities;
       ``(E) $8,660,000 for airport technology projects and 
     activities;
       ``(F) $51,004,000 for aircraft safety technology projects 
     and activities;
       ``(G) $36,604,000 for system security technology projects 
     and activities;
       ``(H) $26,484,000 for human factors and aviation medicine 
     projects and activities;
       ``(I) $8,124,000 for environment and energy projects and 
     activities; and
       ``(J) $5,199,000 for innovative/cooperative research 
     projects and activities; and
       ``(2) for fiscal year 1996--
       ``(A) $8,056,000 for management and analysis projects and 
     activities;
       ``(B) $84,946,000 for capacity and air traffic management 
     technology projects and activities;
       ``(C) $41,204,000 for communications, navigation, and 
     surveillance projects and activities;
       ``(D) $3,054,000 for weather projects and activities;
       ``(E) $9,093,000 for airport technology projects and 
     activities;
       ``(F) $53,554,000 for aircraft safety technology projects 
     and activities;
       ``(G) $38,434,000 for system security technology projects 
     and activities;
       ``(H) $27,808,000 for human factors and aviation medicine 
     projects and activities;
       ``(I) $8,532,000 for environment and energy projects and 
     activities; and
       ``(J) $5,459,000 for innovative/cooperative research 
     projects and activities.''.

     SEC. 303. JOINT AVIATION RESEARCH AND DEVELOPMENT PROGRAM.

       (a) Establishment.--The Administrator, in consultation with 
     the heads of other appropriate Federal agencies, shall 
     jointly establish a program to conduct research on aviation 
     technologies that enhance United States competitiveness. The 
     program shall include--
       (1) next-generation satellite communications, including 
     global positioning satellites;
       (2) advanced airport and airplane security;
       (3) environmentally compatible technologies, including 
     technologies that limit or reduce noise and air pollution;
       (4) advanced aviation safety programs; and
       (5) technologies and procedures to enhance and improve 
     airport and airway capacity.
       (b) Procedures for Contracts and Grants.--The Administrator 
     and the heads of the other appropriate Federal agencies shall 
     administer contracts and grants entered into under the 
     program established under subsection (a) in accordance with 
     procedures developed jointly by the Administrator and the 
     heads of the other appropriate Federal agencies. The 
     procedures should include an integrated acquisition policy 
     for contract and grant requirements and for technical data 
     rights that are not an impediment to joint programs among the 
     Federal Aviation Administration, the other Federal agencies 
     involved, and industry.
       (c) Program Elements.--The program established under 
     subsection (a) shall include--
       (1) selected programs that jointly enhance public and 
     private aviation technology development;
       (2) an opportunity for private contractors to be involved 
     in such technology research and development; and
       (3) the transfer of Government-developed technologies to 
     the private sector to promote economic strength and 
     competitiveness.
       (d) Authorization of Appropriations.--Of amounts authorized 
     to be appropriated for fiscal years 1995 and 1996 under 
     section 48102(a) of title 49, United States Code, as amended 
     by section 302 of this title, there are authorized to be 
     appropriated for fiscal years 1995 and 1996, respectively, 
     such sums as may be necessary to carry out this section.

     SEC. 304. AIRCRAFT CABIN AIR QUALITY RESEARCH PROGRAM.

       (a) Establishment.--The Administrator, in consultation with 
     the heads of other appropriate Federal agencies, shall 
     establish a research program to determine--
       (1) what, if any, aircraft cabin air conditions, including 
     pressure altitude systems, on flights within the United 
     States are harmful to the health of airline passengers and 
     crew, as indicated by physical symptoms such as headaches, 
     nausea, fatigue, and lightheadedness; and
       (2) the risk of airline passengers and crew contracting 
     infectious diseases during flight.
       (b) Contract With Center for Disease Control.--In carrying 
     out the research program established under subsection (a), 
     the Administrator and the heads of the other appropriate 
     Federal agencies shall contract with the Center for Disease 
     Control and other appropriate agencies to carry out any 
     studies necessary to meet the goals of the program set forth 
     in subsection (c).
       (c) Goals.--The goals of the research program established 
     under subsection (a) shall be--
       (1) to determine what, if any, cabin air conditions 
     currently exist on domestic aircraft used for flights within 
     the United States that could be harmful to the health of 
     airline passengers and crew, as indicated by physical 
     symptoms such as headaches, nausea, fatigue, and 
     lightheadedness, and including the risk of infection by 
     bacteria and viruses;
       (2) to determine to what extent, changes in, cabin air 
     pressure, temperature, rate of cabin air circulation, the 
     quantity of fresh air per occupant, and humidity on current 
     domestic aircraft would reduce or eliminate the risk of 
     illness or discomfort to airline passengers and crew; and
       (3) to establish a long-term research program to examine 
     potential health problems to airline passengers and crew that 
     may arise in an airplane cabin on a flight within the United 
     States because of cabin air quality as a result of the 
     conditions and changes described in paragraphs (1) and (2).
       (d) Participation.--In carrying out the research program 
     established under subsection (a), the Administrator shall 
     encourage participation in the program by representatives of 
     aircraft manufacturers, air carriers, aviation employee 
     organizations, airline passengers, and academia.
       (e) Report.--(1) Within six months after the date of 
     enactment of this Act, the Administrator shall submit to the 
     Congress a plan for implementation of the research program 
     established under subsection (a).
       (2) The Administrator shall annually submit to the Congress 
     a report on the progress made during the year for which the 
     report is submitted toward meeting the goals set forth in 
     subsection (c).
       (f) Authorization of Appropriations.--Of amounts authorized 
     to be appropriated for fiscal years 1995 and 1996 under 
     section 48102(a) of title 49, United States Code, as amended 
     by section 302 of this title, there are authorized to be 
     appropriated for fiscal years 1995 and 1996, respectively, 
     such sums as may be necessary to carry out this section.

     SEC. 305. USE OF DOMESTIC PRODUCTS.

       (a) Prohibition Against Fraudulent Use of ``Made in 
     America'' Labels.--(1) A person shall not intentionally affix 
     a label bearing the inscription of ``Made in America'', or 
     any inscription with that meaning, to any product sold in or 
     shipped to the United States, if that product is not a 
     domestic product.
       (2) A person who violates paragraph (1) shall not be 
     eligible for any contract for a procurement carried out with 
     amounts authorized under this title, including any 
     subcontract under such a contract pursuant to the debarment, 
     suspension, and ineligibility procedures in subpart 9.4 of 
     chapter 1 of title 48, Code of Federal Regulations, or any 
     successor procedures thereto.
       (b) Compliance With Buy American Act.--(1) Except as 
     provided in paragraph (2), the head of each office within the 
     Federal Aviation Administration that conducts procurements 
     shall ensure that such procurements are conducted in 
     compliance with sections 2 through 4 of the Act of March 3, 
     1933 (41 U.S.C. 10a through 10c, popularly known as the ``Buy 
     American Act'').
       (2) This subsection shall apply only to procurements made 
     for which--
       (A) amounts are authorized by this title to be made 
     available; and
       (B) solicitations for bids are issued after the date of the 
     enactment of this Act.
       (3) The Secretary, before January 1, 1995, shall report to 
     the Congress on procurements covered under this subsection of 
     products that are not domestic products.
       (c) Definitions.--For the purposes of this section, the 
     term ``domestic product'' means a product--
       (1) that is manufactured or produced in the United States; 
     and
       (2) at least 50 percent of the cost of the articles, 
     materials, or supplies of which are mined, produced, or 
     manufactured in the United States.

     SEC. 306. PURCHASE OF AMERICAN MADE EQUIPMENT AND PRODUCTS.

       (a) Sense of Congress.--It is the sense of Congress that 
     any recipient of a grant under this title, or under any 
     amendment made by this title, should purchase, when available 
     and cost-effective, American made equipment and products when 
     expending grant monies.
       (b) Notice to Recipients of Assistance.--In allocating 
     grants under this title, or under any amendment made by this 
     title, the Secretary shall provide to each recipient a notice 
     describing the statement made in subsection (a) by the 
     Congress.

     SEC. 307. COOPERATIVE AGREEMENTS FOR RESEARCH, ENGINEERING, 
                   AND DEVELOPMENT.

       Section 44505 of title 49, United States Code, is amended 
     by adding at the end the following new subsection:
       ``(d) Cooperative Agreements.--The Administrator may enter 
     into cooperative agreements on a cost-shared basis with 
     Federal and non-Federal entities that the Administrator may 
     select in order to conduct, encourage, and promote aviation 
     research, engineering, and development, including the 
     development of prototypes and demonstration models.''.

     SEC. 308. RESEARCH PROGRAM ON QUIET AIRCRAFT TECHNOLOGY.

       (a) In General.--Subchapter I of chapter 475 of part B of 
     subtitle VII is amended by adding at the end the following 
     new section:

     ``Sec. 47509. Research program on quiet aircraft technology 
       for propeller and rotor driven aircraft

       ``(a) Establishment.--The Administrator of the Federal 
     Aviation Administration and the Administrator of the National 
     Aeronautics and Space Administration shall conduct a study to 
     identify technologies for noise reduction of propeller driven 
     aircraft and rotorcraft.
       ``(b) Goal.--The goal of the study conducted under 
     subsection (a) is to determine the status of research and 
     development now underway in the area of quiet technology for 
     propeller driven aircraft and rotorcraft, including 
     technology that is cost beneficial, and to determine whether 
     a research program to supplement existing research activities 
     is necessary.
       ``(c) Participation.--In conducting the study required 
     under subsection (a), the Administrator of the Federal 
     Aviation Administration and the Administrator of the National 
     Aeronautics and Space Administration shall encourage the 
     participation of the Department of Defense, the Department of 
     the Interior, the airtour industry, the aviation industry, 
     academia and other appropriate groups.
       ``(d) Report.--Not less than 280 days after the date of the 
     enactment of this section, the Administrator of the Federal 
     Aviation Administration and the Administrator of the National 
     Aeronautics and Space Administration shall transmit to 
     Congress a report on the results of the study required under 
     subsection (a).
       ``(e) Research and Development Program.--If the 
     Administrator of the Federal Aviation Administration and the 
     Administrator of the National Aeronautics and Space 
     Administration determine that additional research and 
     development is necessary and would substantially contribute 
     to the development of quiet aircraft technology, then the 
     agencies shall conduct an appropriate research program in 
     consultation with the entities listed in subsection (c) to 
     develop safe, effective, and economical noise reduction 
     technology (including technology that can be applied to 
     existing propeller driven aircraft and rotorcraft) that would 
     result in aircraft that operate at substantially reduced 
     levels of noise to reduce the impact of such aircraft and 
     rotorcraft on the resources of national parks and other 
     areas.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding after the item 
     relating to section 47508 the following new item:

``47509. Research program on quiet aircraft technology for propeller 
              and rotor driven aircraft.''.
   TITLE IV--EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURE 
                               AUTHORITY

     SEC. 401. EXPENDITURES FROM AIRPORT AND AIRWAY TRUST FUND.

       Paragraph (1) of section 9502(d) of the Internal Revenue 
     Code of 1986 (relating to expenditures from Airport and 
     Airway Trust Fund) is amended--
       (1) by striking ``October 1, 1995'' and inserting ``October 
     1, 1996'';
       (2) by inserting ``or the Airport and Airway Safety, 
     Capacity, Noise Improvement, and Intermodal Transportation 
     Act of 1992'' after ``Capacity Expansion Act of 1990'' in 
     subparagraph (A);
       (3) by striking ``(as such Acts were in effect on the date 
     of the enactment of the Airport Improvement Program Temporary 
     Extension Act of 1994)'' in subparagraph (A) and inserting 
     ``or the Federal Aviation Administration Authorization Act of 
     1994''; and
       (4) by adding at the end the following new flush sentence:
     ``Any reference in subparagraph (A) to an Act shall be 
     treated as a reference to such Act and the corresponding 
     provisions (if any) of title 49, United States Code, as such 
     Act and provisions were in effect on the date of the 
     enactment of the last Act referred to in subparagraph (A).''
                   TITLE V--MISCELLANEOUS PROVISIONS

     SEC. 501. RULEMAKING ON RANDOM TESTING FOR PROHIBITED DRUGS.

       Not later than 180 days after the date of the enactment of 
     this Act, the Secretary shall complete a rulemaking 
     proceeding and issue a final decision on whether there should 
     be a reduction in the annualized rate now required by the 
     Secretary of random testing for prohibited drugs for 
     personnel engaged in aviation activities.

     SEC. 502. TRANSPORTATION SECURITY REPORT.

       Section 44938(a) is amended by striking ``December 31'' and 
     inserting ``March 31''.

     SEC. 503. REPEAL OF ANNUAL REPORT REQUIREMENT.

       Section 401 of the Aviation Safety and Noise Abatement Act 
     of 1979 (Public Law 96-193; 94 Stat. 57) is repealed.

     SEC. 504. ADVANCED LANDING SYSTEM.

       Notwithstanding any other provision of law or regulation, 
     the Administrator shall consider for approval under part 171 
     of title 14, Code of Federal Regulations, the new generation, 
     low cost, advanced landing system being developed by the 
     Department of Defense. The charter for approval of such 
     system shall be considered and acted upon expeditiously by 
     the Federal Aviation Administration in the region where such 
     system is being developed.

     SEC. 505. ASBESTOS REMOVAL AND BUILDING DEMOLITION AND 
                   REMOVAL, VACANT AIR FORCE STATION, MARIN 
                   COUNTY, CALIFORNIA.

       (a) Authorization of Appropriations.--There is authorized 
     to be appropriated in fiscal year 1995 to the account for the 
     Department of Transportation for facilities and equipment of 
     the Federal Aviation Administration such amount as may be 
     necessary to permit the Administrator to carry out asbestos 
     abatement activities and the demolition and removal of 
     buildings at the site of the vacant Air Force station located 
     on Mount Tamalpais, Marin County, California. The amount 
     authorized to be appropriated by the preceding sentence shall 
     not exceed the Federal Aviation Administration's share of the 
     costs of carrying out such activities, demolitions, and 
     removals.
       (b) Authority To Use Funds.--The Administrator may use the 
     funds appropriated pursuant to the authorization of 
     appropriations in subsection (a) to carry out the abatement 
     activities and demolition and removal described in that 
     subsection. Such funds shall be available for such purpose 
     until expended.

     SEC. 506. LAND ACQUISITION COSTS.

       Notwithstanding section 47108 of title 49, United States 
     Code, the Secretary may approve an upward adjustment not to 
     exceed $750,000 in the maximum obligation of the United 
     States under an airport improvement program grant made under 
     subchapter I of chapter 471 of subtitle VII of such title to 
     a reliever airport after September 1, 1989, and before 
     October 1, 1989, in order to assist in funding increased land 
     acquisition costs (as determined in judicial proceedings) and 
     associated eligible project costs.

     SEC. 507. INFORMATION ON DISINSECTION OF AIRCRAFT.

       (a) Availability of Information.--In the interest of 
     protecting the health of air travelers, the Secretary shall 
     publish a list of the countries (as determined by the 
     Secretary) that require disinsection of aircraft landing in 
     such countries while passengers and crew are on board such 
     aircraft.
       (b) Revision.--The Secretary shall revise the list required 
     under subsection (a) on a periodic basis.
       (c) Publication.--The Secretary shall publish the list 
     required under subsection (a) not later than 30 days after 
     the date of the enactment of this Act. The Secretary shall 
     publish a revision to the list not later than 30 days after 
     completing the revision under subsection (b).

     SEC. 508. CONTRACT TOWER ASSISTANCE.

       The Secretary shall take appropriate action to assist 
     communities where the Secretary deems such assistance 
     appropriate in obtaining the installation of a Level I 
     Contract Tower for those communities.

     SEC. 509. DISCONTINUATION OF AVIATION SAFETY JOURNAL.

       (a) In General.--The Administrator may not publish, nor 
     contract with any other organization for the publication of, 
     the magazine known as the ``Aviation Safety Journal''.
       (b) Cancellation of Existing Contracts.--Not later than 30 
     days after the date of the enactment of this Act, the 
     Administrator shall cancel any existing contract for 
     publication of the Aviation Safety Journal.

     SEC. 510. MONROE AIRPORT IMPROVEMENT.

       (a) Authority To Grant Waivers.--Notwithstanding section 16 
     of the Federal Airport Act (as in effect on the date of 
     transfer of Selman Field, Louisiana, from the United States 
     to the city of Monroe, Louisiana), the Secretary is 
     authorized, subject to the provisions of section 47153 of 
     title 49, United States Code, and the provisions of 
     subsection (b) of this section, to waive any term contained 
     in the 1949 deed of conveyance, or any other deed of 
     conveyance occurring subsequent to that initial transference 
     and before the date of enactment of this Act, under which the 
     United States conveyed certain property then constituting 
     Selman Field, Louisiana, to the city of Monroe, Louisiana, 
     for airport purposes.
       (b) Conditions.--Any waiver granted under subsection (a) 
     shall be subject to the following conditions:
       (1) The city of Monroe, Louisiana, shall agree that, in 
     conveying any interest in the property which the United 
     States conveyed to the city by a deed described in subsection 
     (a), the city will receive an amount for such interest which 
     is equal to the fair market value (as determined pursuant to 
     regulations issued by the Secretary).
       (2) Any such amount so received by the city shall be used 
     by the city for the development, improvement, operation, or 
     maintenance of a public airport.

     SEC. 511. SOLDOTNA AIRPORT IMPROVEMENT.

       (a) Authority To Grant Waivers.--Notwithstanding section 16 
     of the Federal Airport Act (as in effect on December 12, 
     1963), the Secretary is authorized, subject to the provisions 
     of section 47153 of title 49, United States Code, and the 
     provisions of subsection (b) of this section, to waive any of 
     the terms contained in the deed of conveyance dated December 
     12, 1963, under which the United States conveyed certain 
     property to the city of Soldotna, Alaska, for airport 
     purposes.
       (b) Conditions.--Any waiver granted under subsection (a) 
     shall be subject to the following conditions:
       (1) The city of Soldotna, Alaska, shall agree that, in 
     conveying any interest in the property which the United 
     States conveyed to the city by deed dated December 12, 1963, 
     the city will receive an amount for such interest which is 
     equal to the fair market value (as determined pursuant to 
     regulations issued by the Secretary).
       (2) Any such amount so received by the city shall be used 
     by the city for the development, improvement, operation, or 
     maintenance of a public airport.

     SEC. 512. STURGIS, KENTUCKY.

       (a) Authority To Grant Waivers.--Notwithstanding any other 
     provision of law, the Secretary is authorized, subject to 
     section 47153 of title 49, United States Code, and subsection 
     (b) of this section, to waive with respect to such parcels of 
     land, or portions of such parcels, as the Administrator 
     determines are no longer required for airport purposes, from 
     any term contained in the deed of conveyance dated July 13, 
     1948, under which the United States conveyed such property to 
     the Union County Air Board, State of Kentucky, for airport 
     purposes of the Sturgis Municipal Airport.
       (b) Conditions.--Any waiver granted by the Secretary under 
     subsection (a) shall be subject to the following conditions:
       (1) The Union County Air Board shall agree that, in leasing 
     or conveying any interest in the property with respect to 
     which waivers are granted under subsection (a), such Board 
     will receive an amount that is equal to the fair lease value 
     or the fair market value, as the case may be (as determined 
     pursuant to regulations issued by the Secretary).
       (2) Such Board shall use any amount so received only for 
     the development, improvement, operation, or maintenance of 
     the Sturgis Municipal Airport.
       (3) Any other conditions that the Secretary considers 
     necessary to protect or advance the interests of the United 
     States in civil aviation.

     SEC. 513. ROLLA AIRPORT IMPROVEMENT.

       (a) Authority To Grant Waivers.--Notwithstanding section 16 
     of the Federal Airport Act (as in effect on December 30, 
     1957), the Secretary is authorized, subject to the provisions 
     of section 47153 of title 49, United States Code, and the 
     provisions of subsection (b) of this section, to waive any of 
     the terms contained in the deed of conveyance dated December 
     30, 1957, or any other deed of conveyance dated after such 
     date and before the date of enactment of this Act, under 
     which the United States conveyed certain property to the city 
     of Rolla, Missouri, for airport purposes.
       (b) Conditions.--Any waiver under subsection (a) shall be 
     subject to the following conditions:
       (1) The city of Rolla, Missouri, shall agree that, in 
     conveying any interest in the property which the United 
     States conveyed to the city by a deed described in subsection 
     (a), the city will receive an amount for such interest which 
     is equal to the fair market value (as determined pursuant to 
     regulations issued by the Secretary).
       (2) Any such amount so received by the city shall be used 
     by the city for the development, improvement, operation, or 
     maintenance of a public airport.

     SEC. 514. PALM SPRINGS, CALIFORNIA.

       (a) Authority To Grant Waivers.--Notwithstanding section 
     47153 of title 49, United States Code, and subject to the 
     provisions of subsection (b), the Secretary shall grant 
     waivers from all of the terms contained in the deed of 
     conveyance dated September 15, 1949, under which the United 
     States conveyed certain property to Palm Springs, California, 
     for airport purposes. The waivers shall apply only to 
     approximately 11 acres of lot 16 of section 13, and 
     approximately 39.07 acres of lots 19 and 20 of section 19, 
     used by the city of Palm Springs, California for general 
     governmental purposes.
       (b) Conditions.--Any waiver granted by the Secretary under 
     subsection (a) shall be subject to the following conditions:
       (1) The Secretary shall waive any requirement that there be 
     credited to the account of the airport any amount 
     attributable to the city's use for governmental purposes of 
     any land conveyed under the deed of conveyance referred to in 
     subsection (a) before the date of the enactment of this 
     section.
       (2) The city shall abandon all claims, against income of 
     the Palm Springs Regional Airport or other assets of that 
     airport, for reimbursement of general revenue funds that the 
     city may have expended before the date of the enactment of 
     this section for acquisition of 523.39 acres of land conveyed 
     August 28, 1961, for airport purposes and for expenses 
     incurred at any time in connection with such acquisition, and 
     such claims shall not be eligible for reimbursement under the 
     Airport and Airway Improvement Act or any successor law.

     SEC. 515. REAL ESTATE TRANSFERS IN ALASKA AND WEATHER 
                   OBSERVATION SERVICES.

       (a) Transfer of Site in Lake Minchumina, Alaska.--The 
     Administrator shall convey to the Iditarod Area School 
     District the Federal Aviation Administration building number 
     106 and a reasonable amount of land to make use of the 
     property, at Lake Minchumina, Alaska, for the purpose of 
     providing educational facilities, under the terms set forth 
     in Agreement No. DTFA04-93-J-82007, between the Federal 
     Aviation Administration and the Iditarod Area School 
     District, and such other terms as are mutually agreed on 
     between the Administrator and the Iditarod Area School 
     District.
       (b) Transfer of Site in Fort Yukon, Alaska.--The 
     Administrator shall convey to the city of Fort Yukon, Alaska, 
     the buildings of the Federal Aviation Administration and land 
     in Fort Yukon, Alaska (described as that portion of Lot 4, 
     U.S. Survey 7161, within section 8, T.20 N., R.12E., 
     Fairbanks Meridian consisting of 7.14 acres, and containing 
     the health clinic and staff housing for the aforementioned 
     clinic) for the purpose of providing health services, under 
     terms that are mutually agreed on between the Administrator 
     and the city of Fort Yukon.
       (c) Weather Observation Services.--Not later than 90 days 
     after the date of the enactment of this Act, the 
     Administrator shall designate airports, as described in this 
     section, and provide human observers at such airports to 
     offer real time weather information to pilots by direct radio 
     contact. Airports to be designated shall be located in a 
     State that averaged, during the period 1989-1993, 3 or more 
     accidents per year involving serious or fatal injury to crew 
     or passengers on regularly scheduled flights operating 
     single-engine aircraft under visual flight rules, and shall 
     be designated as follows:
       (1) Not to exceed 5 airports where terrain and conditions 
     do not lend themselves to IFR operations supported solely by 
     automated weather observing systems.
       (2) Not to exceed 1 airport where an automated surface 
     observing system is scheduled to be accepted on September 1, 
     1994, with such weather services to be provided until such 
     time as the Administrator determines that the automated 
     surface observing system is fully operational.
       (3) Not to exceed 8 airports (where such weather 
     observation services shall be on a cost-reimbursable basis) 
     that are minor hub stations or strategic visual flight rules 
     alternate airports at times when an observer is needed to 
     supplement the automated weather observing system or 
     immediately replace it in the event of failure.

     SEC. 516. RELOCATION OF AIRWAY FACILITIES.

       Compensation received by the United States for transfer of 
     the San Jacinto Disposal Area by the United States to the 
     city of Galveston, Texas, shall include compensation to be 
     provided to the Federal Aviation Administration for all costs 
     of establishing airway facilities to replace existing airway 
     facilities on the San Jacinto Disposal Area. Such 
     compensation shall include but is not limited to compensation 
     for the replacement of the land, clear zones, buildings and 
     equipment, and demolition and disposal of the existing 
     facilities on the San Jacinto Disposal Area.

     SEC. 517. SAFETY AT ASPEN-PITKIN COUNTY AIRPORT.

       (a) Nighttime Operations.--On and after November 1, 1994, 
     nighttime operations (takeoffs and landings) at Aspen-Pitkin 
     County Airport in the State of Colorado shall be allowed for 
     a pilot operating under instrument flight rules or visual 
     flight rules under parts 91 and 135 of title 14, Code of 
     Federal Regulations, between 30 minutes after official sunset 
     and 11 p.m., local time, as follows:
       (1) A pilot may operate under instrument flight rules 
     between 30 minutes after official sunset and 11 p.m., local 
     time (or such other operating hours as are established 
     uniformly for all classes of operators), only if the pilot--
       (A) is granted clearance by air traffic control;
       (B) is instrument-rated;
       (C) is operating an aircraft that is equipped as required 
     under section 91.205(d) of such title 14 for instrument 
     flight; and
       (D) is operating an instrument approach or departure 
     procedure approved by the Federal Aviation Administration.
       (2) A pilot may operate under visual flight rules between 
     30 minutes after official sunset and 11:00 p.m., local time 
     (or such other operating hours as are established uniformly 
     for all classes of operators), only if the pilot--
       (A) is instrument rated;
       (B) has completed at least one takeoff or landing in the 
     preceding 12 calendar months at such airport; and
       (C) operates an aircraft equipped as required under section 
     91.205(d) of such title 14 for instrument flight.
       (b) Commitments of Airport Owner or Operator.--The owner or 
     operator of the Aspen-Pitkin County Airport shall be 
     considered to be in compliance with the requirements of 
     subchapter II of chapter 475 of title 49, United States Code, 
     and not otherwise unjustly discriminatory when such owner or 
     operator notifies the Administrator that such owner or 
     operator--
       (1) commits to modify its existing regulation to expand 
     access to general aviation operations under such special 
     operating restrictions as are created under subsection (a) 
     and such conditions applicable to aircraft noise 
     certification as are currently in effect for night operations 
     at such airport; and
       (2) commits permanently not to enforce its 1990 regulatory 
     action eliminating the so-called ``ski season exception'' to 
     its nighttime curfew.

     To remain in compliance, such owner or operator shall carry 
     out both such commitments on or before November 1, 1994.
       (c) Mountain Flying.--The Administrator shall issue a 
     notice of proposed rulemaking on mountain flying.

     SEC. 518. COLLECTIVE BARGAINING AT WASHINGTON AIRPORTS.

       (a) Study.--The Secretary and the Secretary of Labor shall 
     undertake a study of whether employees of airports operated 
     by the Metropolitan Washington Airports Authority 
     (hereinafter in this section referred to as the ``Airports 
     Authority'') should be given the right to bargain 
     collectively. The study shall consider whether the benefits 
     of collective bargaining for employees of the Airports 
     Authority outweighs the burdens of collective bargaining.
       (b) Matters To Be Considered.--In conducting the study 
     under subsection (a), the Secretary and the Secretary of 
     Labor shall investigate the following matters and reach 
     conclusions as to the relevance of such matters to the 
     question of whether employees of airports operated by the 
     Airports Authority should be given collective bargaining 
     rights:
       (1) The employment status of employees of the Airports 
     Authority.
       (2) The wages and working conditions of firefighters and 
     other employees at the airports operated by the Airports 
     Authority and other airports.
       (3) The collective bargaining rights of employees at the 
     airports operated by the Airports Authority and other 
     airports.
       (4) Whether other airports are governed by Federal labor 
     laws.
       (5) The existing rights of employees of the Airports 
     Authority to collective representation regarding the terms 
     and conditions of employment.
       (6) Any other factors that the Secretary and the Secretary 
     of Labor consider relevant to the study.

     In conducting such study, the Secretary and the Secretary of 
     Labor shall also consider procedures for impass resolution of 
     collective bargaining disputes that will avoid the disruption 
     of essential public services at the Airports Authority.
       (c) Report.--Not later than March 1, 1995, the Secretary 
     and the Secretary of Labor shall transmit to Congress a 
     report containing the results of the study to be conducted 
     under subsection (a). If the study concludes that employees 
     of the airports operated by the Airports Authority should be 
     afforded collective bargaining rights, the report shall also 
     include specific legislative recommendations.

     SEC. 519. REPORT ON CERTAIN BILATERAL NEGOTIATIONS.

       The Secretary shall report every other month to the 
     Committee on Public Works and Transportation of the House of 
     Representatives and the Committee on Commerce, Science, and 
     Transportation of the Senate on the status of all active 
     aviation bilateral and multilateral negotiations and informal 
     government-to-government consultations with United States 
     aviation trade partners.

     SEC. 520. STUDY ON INNOVATIVE FINANCING.

       (a) Study.--The Secretary shall conduct a study on 
     innovative approaches for using Federal funds to finance 
     airport development as a means of supplementing financing 
     available under the Airport Improvement Program.
       (b) Matters To Be Considered.--In conducting the study 
     under subsection (a), the Secretary shall consider, at a 
     minimum, the following:
       (1) Mechanisms that will produce greater investments in 
     airport development per dollar of Federal expenditure.
       (2) Approaches that would permit entering into agreements 
     with non-Federal entities, such as airport sponsors, for the 
     loan of Federal funds, guarantee of loan repayment, or 
     purchase of insurance or other forms of enhancement for 
     borrower debt, including the use of unobligated Airport 
     Improvement Program contract authority and unobligated 
     balances in the Airport and Airway Trust Fund.
       (3) Means to lower the cost of financing airport 
     development.
       (c) Consultation.--In considering innovative financing 
     pursuant to this section, the Secretary may consult with 
     airport owners and operators and public and private sector 
     experts.
       (d) Report to Congress.--Not later than 12 months after the 
     date of the enactment of this Act, the Secretary shall 
     transmit to Congress a report on the results of the study 
     conducted under subsection (a).

     SEC. 521. SAFETY OF JUNEAU INTERNATIONAL AIRPORT.

       (a) Study.--Not later than 30 days after the date of the 
     enactment of this Act, the Secretary, in cooperation with the 
     National Transportation Safety Board, the National Guard, and 
     the Juneau International Airport, shall undertake a study of 
     the safety of the approaches to the Juneau International 
     Airport.
       (b) Matters To Be Considered.--In conducting the study 
     under subsection (a), the Secretary shall examine--
       (1) the crash of Alaska Airlines Flight 1866 on September 
     4, 1971;
       (2) the crash of a Lear Jet on October 22, 1985;
       (3) the crash of an Alaska Army National Guard aircraft on 
     November 12, 1992;
       (4) the adequacy of NAVAIDs in the vicinity of the Juneau 
     International Airport;
       (5) the possibility of inaccurate data from Sisters Island 
     DVOR and the possibility of confusion between Elephant Island 
     Non-Directional Beacon and Coghlan Island Non-Directional 
     Beacon;
       (6) the need for a singular Approach Surveillance Radar 
     site on top of Heintzleman Ridge;
       (7) the need for a Terminal Very High Frequency Omni-
     Directional Range (Terminal VOR) navigational aid in 
     Gastineau Channel; and
       (8) any other matter that a participant in the study 
     specified in subsection (a) considers appropriate to the 
     safety of aircraft approaching or leaving the Juneau 
     International Airport.
       (c) Report.--Not later than 6 months after the date of the 
     enactment of this Act, the Secretary shall transmit to the 
     Committee on Commerce, Science, and Transportation of the 
     Senate and the Committee on Public Works and Transportation 
     of the House of Representatives a report which--
       (1) details the matters considered by the study conducted 
     under subsection (a);
       (2) summarizes any conclusions reached by the participants 
     in the study;
       (3) proposes specific recommendations to improve or enhance 
     the safety of aircraft approaching or leaving the Juneau 
     International Airport or contains a detailed explanation of 
     why no recommendations are being proposed;
       (4) estimates the cost of any proposed recommendations;
       (5) includes any other matters the Secretary deems 
     appropriate; and
       (6) includes any minority views if a consensus is not 
     reached among the participants in the study specified in 
     subsection (a).

     SEC. 522. STUDY ON CHILD RESTRAINT SYSTEMS.

       (a) Study.--The Secretary shall conduct a study on the 
     availability, effectiveness, cost, and usefulness of 
     restraint systems that may offer protection to a child 
     carried in the lap of an adult aboard an air carrier aircraft 
     or provide for the attachment of a child restraint device to 
     the aircraft.
       (b) Study Criteria.--Among other issues, the study shall 
     examine the impact of the following:
       (1) The direct cost to families of requiring air carriers 
     to provide restraint systems and requiring infants to use 
     them, including whether airlines will charge a fare for use 
     of seats containing infant restraining systems; such estimate 
     to cover a ten-year period.
       (2) The impact on air carrier aircraft passenger volume by 
     requiring use of infant restraint systems, including whether 
     families will choose to travel to destinations by other 
     means, including automobiles; such estimate to cover a ten-
     year period.
       (3) The impact over a 10-year period on fatality rates of 
     infants using other modes of transportation, including 
     automobiles.
       (4) The efficacy of infant restraint systems currently 
     marketed as able to be used for air carrier aircraft.
       (c) Report.--Not later than 6 months after the date of the 
     enactment of this Act, the Secretary shall submit to the 
     Committee on Commerce, Science, and Transportation of the 
     Senate and the Committee on Public Works and Transportation 
     of the House of Representatives a report on the results of 
     the study conducted under subsection (a).

     SEC. 523. SENSE OF SENATE RELATING TO DOT INSPECTOR GENERAL.

       It is the sense of the Senate that the Inspector General of 
     the Department of Transportation in carrying out the duties 
     and responsibilities of the Inspector General Act of 1978 has 
     oversight responsibilities and may conduct and supervise 
     audits and investigations relating to any funds appropriated 
     by the Congress and made available for any programs or 
     operations at Washington National Airport and Washington 
     Dulles International Airport, and that the Inspector General 
     shall--
       (1) provide leadership and coordination and recommend 
     policies for activities designed to promote the economy, 
     efficiency, and effectiveness of such programs and 
     operations;
       (2) act to prevent and detect fraud and abuse in such 
     programs and operations; and
       (3) inform the Secretary and the Congress about problems 
     and deficiencies relating to the administration of such 
     programs and operations.

     SEC. 524. SENSE OF SENATE ON ISSUANCE OF REPORT ON USAGE OF 
                   RADAR AT THE CHEYENNE, WYOMING, AIRPORT.

       It is the sense of the Senate that the Secretary should--
       (1) take such action as may be necessary to revise the cost 
     and benefit analysis process of the Department of 
     Transportation to fully take projected military enplanement 
     and cost savings figures into consideration with regard to 
     radar installations at joint-use civilian and military 
     airports;
       (2) require the Administrator to reevaluate the aircraft 
     radar needs at the Cheyenne, Wyoming, airport and enter into 
     an immediate dialogue with officials of the Wyoming Air 
     Guard, F.E. Warren Air Force Base, and Cheyenne area leaders 
     in the phase II radar installation reevaluation of the 
     Administration and adjust cost and benefit determinations 
     based to some appropriate degree on already provided military 
     figures and concerns and other enplanement projections in the 
     region; and
       (3) report to Congress not later than 60 days after the 
     date of the enactment of this Act on the results of the 
     reevaluation of the aircraft radar needs of the Cheyenne, 
     Wyoming, airport and of Southeast Wyoming, and explain how 
     military figures and concerns will be appropriately solicited 
     in future radar decisions involving joint-use airport 
     facilities.

     SEC. 525. NORTH KOREA.

       (a) Findings.--(1) President Clinton stated in November 
     1993 that it is the official policy of the United States that 
     North Korea cannot be allowed to become a nuclear power.
       (2) The United States seeks to persuade North Korea, 
     through negotiations, the imposition of sanctions, or other 
     means, to act in accordance with its freely undertaken 
     obligations under the Treaty on the Non-Proliferation of 
     Nuclear Weapons and to abandon its efforts to develop nuclear 
     weapons.
       (3) North Korea has repeatedly threatened to withdraw from 
     the Treaty on the Non-Proliferation of Nuclear Weapons, has 
     resisted efforts of the International Atomic Energy Agency to 
     conduct effective inspections of its nuclear program, and has 
     stated that it would consider the imposition of economic 
     sanctions as an act of war and has threatened retaliatory 
     action.
       (4) The North Korean Government has constructed and has 
     operated a reprocessing facility at Yongbyon solely designed 
     to convert spent nuclear fuel into plutonium with which to 
     make nuclear weapons. Further, the existence of this facility 
     and the development of these weapons gravely threaten 
     security in the region and increases the likelihood of 
     worldwide nuclear terrorism.
       (5) The Secretary of Defense stated that the United States 
     must act on the assumption that there will be some increase 
     in the risk of war if sanctions are imposed on North Korea.
       (6) It is incumbent on the United States to take all 
     necessary and prudent action to act together with the 
     Republic of Korea to ensure the preparedness of United States 
     and Republic of Korea forces to repel as quickly as possible 
     any attack from North Korea and to protect the safety and 
     security of United States and Republic of Korea forces, as 
     well as the safety and security of the civilian population of 
     the peninsula.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the United States should immediately take all necessary 
     and prudent actions to enhance the preparedness and safety of 
     United States forces and urge and assist the Republic of 
     Korea to do likewise in order to deter and, if necessary, 
     repel an attack from North Korea.

     SEC. 526. SENSE OF SENATE ON FINAL REGULATIONS UNDER CIVIL 
                   RIGHTS ACT OF 1964.

       (a) Findings.--The Senate finds that--
       (1) the liberties protected by our Constitution include 
     religious liberty protected by the first amendment;
       (2) citizens of the United States profess the beliefs of 
     almost every conceivable religion;
       (3) Congress has historically protected religious 
     expression even from governmental action not intended to be 
     hostile to religion;
       (4) the Supreme Court has written that ``the free exercise 
     of religion means, first and foremost, the right to believe 
     and profess whatever religious doctrine one desires'';
       (5) the Supreme Court has firmly settled that under our 
     Constitution the public expression of ideas may not be 
     prohibited merely because the content of the ideas is 
     offensive to some;
       (6) Congress enacted the Religious Freedom Restoration Act 
     of 1993 to restate and make clear again our intent and 
     position that religious liberty is and should forever be 
     granted protection from unwarranted and unjustified 
     government intrusions and burdens;
       (7) the Equal Employment Opportunity Commission has written 
     proposed guidelines to title VII of the Civil Rights Act of 
     1964, published in the Federal Register on October 1, 1993, 
     that may result in the infringement of religious liberty;
       (8) such guidelines do not appropriately resolve issues 
     related to religious liberty and religious expression in the 
     workplace;
       (9) properly drawn guidelines for the determination of 
     religious harassment should provide appropriate guidance to 
     employers and employees and assist in the continued 
     preservation of religious liberty as guaranteed by the first 
     amendment;
       (10) the Commission states in its proposed guidelines that 
     it retains wholly separate guidelines for the determination 
     of sexual harassment because the Commission believes that 
     sexual harassment raises issues about human interaction that 
     are to some extent unique in comparison to other harassment 
     and may warrant separate treatment; and
       (11) the subject of religious harassment also raises issues 
     about human interaction that are to some extent unique in 
     comparison to other harassment.
       (b) It is the sense of the Senate that, for purposes of 
     issuing final regulations under title VII of the Civil Rights 
     Act of 1964 in connection with the proposed guidelines 
     published by the Equal Employment Opportunity Commission on 
     October 1, 1993 (58 Fed. Reg. 51266)--
       (1) the category of religion should be withdrawn from the 
     proposed guidelines at this time;
       (2) any new guidelines for the determination of religious 
     harassment should be drafted so as to make explicitly clear 
     that symbols or expressions of religious belief consistent 
     with the first amendment and the Religious Freedom 
     Restoration Act of 1993 are not to be restricted and do not 
     constitute proof of harassment;
       (3) the Commission should hold public hearings on such new 
     proposed guidelines; and
       (4) the Commission should receive additional public comment 
     before issuing similar new regulations.
            TITLE VI--INTRASTATE TRANSPORTATION OF PROPERTY

     SEC. 601. PREEMPTION OF INTRASTATE TRANSPORTATION OF 
                   PROPERTY.

       (a) Findings.--Congress finds and declares that--
       (1) the regulation of intrastate transportation of property 
     by the States has--
       (A) imposed an unreasonable burden on interstate commerce;
       (B) impeded the free flow of trade, traffic, and 
     transportation of interstate commerce; and
       (C) placed an unreasonable cost on the American consumers; 
     and
       (2) certain aspects of the State regulatory process should 
     be preempted.
       (b) Transportation By Air Carrier or Carrier Affiliated 
     With a Direct Air Carrier.--
       (1) In general.--Section 41713(b) is amended by adding at 
     the end the following new paragraph:
       ``(4) Transportation by air carrier or carrier affiliated 
     with a direct air carrier.--
       ``(A) General rule.--Except as provided in subparagraph 
     (B), a State, political subdivision of a State, or political 
     authority of 2 or more States may not enact or enforce a law, 
     regulation, or other provision having the force and effect of 
     law related to a price, route, or service of an air carrier 
     or carrier affiliated with a direct air carrier through 
     common controlling ownership when such carrier is 
     transporting property by aircraft or by motor vehicle 
     (whether or not such property has had or will have a prior or 
     subsequent air movement).
       ``(B) Matters not covered.--Subparagraph (A)--
       ``(i) shall not restrict the safety regulatory authority of 
     a State with respect to motor vehicles, the authority of a 
     State to impose highway route controls or limitations based 
     on the size or weight of the motor vehicle or the hazardous 
     nature of the cargo, or the authority of a State to regulate 
     motor carriers with regard to minimum amounts of financial 
     responsibility relating to insurance requirements and self-
     insurance authorization; and
       ``(ii) does not apply to the transportation of household 
     goods, as defined in section 10102 of this title.
       ``(C) Applicability of paragraph (1).--This paragraph shall 
     not limit the applicability of paragraph (1).''.
       (2) Conforming amendments.--
       (A) Section 41713.--Section 41713(b)(2) is amended by 
     striking ``Paragraph (1) of this subsection does'' and 
     inserting ``Paragraphs (1) and (4) of this subsection do''.
       (B) Section 40102.--Section 40102(a)(35) is amended by 
     striking ``for air transportation''.
       (C) Section 10521.--Section 10521(b)(1) is amended by 
     striking ``and 11501(e)'' and inserting ``11501(e), and 
     11501(h)''.
       (c) Transportation by Motor Carrier.--Section 11501 is 
     amended by adding at the end the following new subsection:
       ``(h) Preemption of State Economic Regulation of Motor 
     Carriers.--
       ``(1) General rule.--Except as provided in paragraphs (2) 
     and (3), a State, political subdivision of a State, or 
     political authority of 2 or more States may not enact or 
     enforce a law, regulation, or other provision having the 
     force and effect of law related to a price, route, or service 
     of any motor carrier (other than a carrier affiliated with a 
     direct air carrier covered by section 41713(b)(4) of this 
     title) or any motor private carrier with respect to the 
     transportation of property.
       ``(2) Matters not covered.--Paragraph (1)--
       ``(A) shall not restrict the safety regulatory authority of 
     a State with respect to motor vehicles, the authority of a 
     State to impose highway route controls or limitations based 
     on the size or weight of the motor vehicle or the hazardous 
     nature of the cargo, or the authority of a State to regulate 
     motor carriers with regard to minimum amounts of financial 
     responsibility relating to insurance requirements and self-
     insurance authorization; and
       ``(B) does not apply to the transportation of households 
     goods.
       ``(3) State standard transportation practices.--
       ``(A) Continuation.--Paragraph (1) shall not affect any 
     authority of a State, political subdivision of a State, or 
     political authority of 2 or more States to enact or enforce a 
     law, regulation, or other provision, with respect to the 
     intrastate transportation of property by motor carriers, 
     related to--
       ``(i) uniform cargo liability rules,
       ``(ii) uniform bills of lading or receipts for property 
     being transported,
       ``(iii) uniform cargo credit rules, or
       ``(iv) antitrust immunity for joint line rates or routes, 
     classifications and mileage guides,
     if such law, regulation, or provision meets the requirements 
     of subparagraph (B).
       ``(B) Requirements.--A law, regulation, or provision of a 
     State, political subdivision, or political authority meets 
     the requirements of this subparagraph if--
       ``(i) the law, regulation, or provision covers the same 
     subject matter as, and compliance with such law, regulation, 
     or provision is no more burdensome than compliance with, a 
     provision of this subtitle or a regulation issued by the 
     Interstate Commerce Commission or the Secretary of 
     Transportation under this subtitle; and
       ``(ii) the law, regulation, or provision only applies to a 
     carrier upon request of such carrier.
       ``(C) Election.--Notwithstanding any other provision of 
     law, a carrier affiliated with a direct air carrier through 
     common controlling ownership may elect to be subject to a 
     law, regulation, or provision of a State, political 
     subdivision, or political authority under this paragraph.''.
       (d) Effective Date.--This section and the amendments made 
     by this section shall take effect on January 1, 1995; except 
     that with respect to the State of Hawaii the amendment made 
     by subsection (c) shall take effect on the last day of the 3-
     year period beginning on the date of the enactment of this 
     Act.
       And the Senate agree to the same.
     From the Committee on Public Works and Transportation, for 
     consideration of titles I and II of the House bill, and the 
     Senate amendment (except secs. 121, 206, 304, 415, 418 and 
     title VI), and modifications committed to conference:
     Norman Y. Mineta,
     Nick Rahall,
     James L. Oberstar,
     Robert A. Borski,
     Bob Clement,
     Bud Shuster,
     Bill Clinger,
     Thomas E. Petri,
     From the Committee on Banking, Finance and Urban Affairs, for 
     consideration of title VI of the Senate amendment, and 
     modifications committed to conference:
     Henry Gonzalez,
     Steve Neal,
     From the Committee on Education and Labor, for consideration 
     of sec. 418 of the Senate amendment, and modifications 
     committed to conference:
     William D. Ford,
     Major R. Owens,
     Howard ``Buck'' McKeon,
     From the Committee on Education and Labor, for consideration 
     of sec. 208 of the House bill, and modifications committed to 
     conference:
     William D. Ford,
     Bill Clay,
     Pat Williams,
     From the Committee on Foreign Affairs, for consideration of 
     sec. 415 of the Senate amendment, and modifications committed 
     to conference:
     Lee H. Hamilton,
     Tom Lantos,
     Gary L. Ackerman,
     Howard L. Berman,
     Eni Faleomavaega,
     Benjamin A. Gilman,
     Bill Goodling,
     Jim Leach,
     From the Committee on Science, Space, and Technology, for 
     consideration of title III of the House bill, and secs. 206 
     and 304 of the Senate amendment, and modifications committed 
     to conference:
     George E. Brown, Jr.,
     Tim Valentine,
     Dan Glickman,
     Pete Geren,
     Jane Harman,
     Robert S. Walker,
     Tom Lewis,
     Constance Morella,
     From the Committee on Ways and Means, for consideration of 
     title IV of the House bill, and secs. 121 and 122 of the 
     Senate amendment, and modifications committed to conference:
     Sam Gibbons,
     Dan Rostenkowski,
     J.J. Pickle,
     Pete Stark,
     Bill Archer,
     Phil Crane,
                                Managers on the Part of the House.

     Ernest Hollings,
     Wendell Ford,
     James Exon,
     John C. Danforth,
     Larry Pressler,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 2739) to amend the 
     Airport and Airway Improvement Act of 1982 to authorize 
     appropriations for fiscal years 1994, 1995, and 1996, and for 
     other purposes, submit the following joint statement to the 
     House and the Senate in explanation of the effect of the 
     action agreed upon by the managers and recommended in the 
     accompanying conference report:
       The Senate amendment struck all of the House bill after the 
     enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment that is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clerical 
     changes.


                       1. section 1. short title

     House bill
       ``Aviation Infrastructure Investment Act of 1993.''
     Senate amendment
       ``Federal Aviation Administration Authorization Act of 
     1994.''
     Conference substitute
       Senate amendment.


                  2. section 101. aip reauthorization

     House bill
       Authorizes contract authority for Airport Improvement 
     Program of $2.105 billion for fiscal year 1994; $2.161 
     billion for fiscal year 1995; and $2.214 billion for fiscal 
     year 1996.
     Senate amendment
       Authorizes AIP contract authority of $2.05 billion for 
     fiscal year 1994; $2.2 billion for fiscal year 1995; and 
     $2.28 billion for fiscal year 1996.
     Conference substitute
       The Conference Substitute adopts the authorization levels 
     of the House bill.
       In recent years, AIP funding has steadily been reduced in 
     the appropriations process. The Managers are concerned about 
     the affect these lower funding levels will have on private 
     reliever airports. In order to receive an AIP grant, airports 
     must put up a local share, usually between 10 and 25 percent 
     of the grant. Currently, airports can use land value as an 
     airport's local share. Under this approach, an airport would 
     agree to forego reimbursement from the FAA for the land the 
     airport previously acquired itself. The amount of the 
     reimbursement foregone is counted as the airport's local 
     share. However, the FAA considers the amount of the 
     reimbursement foregone to be the value of the land at the 
     time that the airport acquired it, rather than its current 
     value at the time the AIP grant is made. Under these 
     circumstances, the private reliever airports present a 
     special case, dealing with private property rights. There are 
     but a few private reliever airports in the country that may 
     be in such a unique position.
       These private reliever airports acquired their land years 
     ago. Consequently the value of the land, as calculated by the 
     FAA for the purpose of the local share, is treated as only a 
     fraction of its real value today. As a result, private 
     reliever airports may not get the full benefit of using land 
     for the local share. At private reliever airports, because of 
     their limited ability to generate revenues, land valuation 
     may be the only means to obtain financing. As a consequence, 
     this limited land valuation may inhibit the private reliever 
     in meeting the local share requirements for an AIP grant. 
     These relievers provide a benefit to the national air 
     transportation system, at least as important as public 
     relievers, in reducing congestion at larger airports. 
     Therefore, impediments to improving these private reliever 
     facilities should be minimized. Accordingly, the Managers 
     urge the FAA to reconsider carefully its policy on land value 
     of private relievers for their local share under the AIP 
     program.
       Due to the lapse in the AIP program, new hub airports have 
     had to move forward with multi-year capital construction 
     programs to accommodate new increased cargo demands at 
     airports. The Managers recommend that the FAA take these 
     factors into consideration when awarding FY 1995 capital 
     grants and negotiating Letters of Intent.
       With respect to Title 49 U.S.C. Section 47102 (3)(E) of the 
     Airport and Airway Improvement Act, the Managers intend 
     relocation of radar towers to include a tower which must be 
     relocated due to interference from a facility served by a 
     project approved by the Secretary under this title.


                  3. section 102. f&e reauthorization

     House bill
       Authorizes funding for FAA Facilities and Equipment of 
     $2.524 billion for fiscal year 1994; $2.670 billion for 
     fiscal year 1995; and $2.735 billion for fiscal year 1996.
     Senate amendment
       No provision.
     Conference substitute
       The Conference Substitute adopts the funding levels of the 
     House bill.
       The Managers recognize, as does the FAA, that weather 
     information plays a critical role in aviation safety. In 
     addition, according to the FAA, in 1993, weather accounted 
     for 71.8 percent of delays. The need to better detect weather 
     systems is borne out by NTSB data which indicates that 
     weather is cited as the cause in 20-25% of all aviation 
     accidents. There are many systems that are used by FAA to 
     track weather, and FAA also works with the National Weather 
     Service to ensure that the best information is available. 
     Systems like Low Level Windshear Alert Systems and Terminal 
     Doppler Weather Radars (TDWRs) are designed to provide 
     advance warnings of windshear and other potentially hazardous 
     wind conditions. Currently, FAA is in the process of 
     installing TDWRs at 47 sites. Ten sites already have TDWRs, 
     but only one has been commissioned. (The first site was 
     commissioned on July 21, 1994.) In addition, nine sites are 
     under construction, while the remaining sites are awaiting 
     installation. As a general matter, it takes some 18 months to 
     install a TDWR, and an additional 4 to 6 months to commission 
     the facility.
       The TDWRs must be sited approximately 8 to 12 miles off the 
     end of a runway. In selecting sites, the FAA has encountered 
     a variety of problems, including wetlands replacement and 
     other environmental issues, as well as land owners unwilling 
     to sell the land. The FAA has worked through many of these 
     problems. Currently, FAA anticipates that it will install and 
     commission TDWRs at the rate of one and a half per month. 
     TDWR technology is fully developed and the contract executed. 
     Delivery, installation and commissioning remain to be 
     accomplished.
       The Managers want to ensure that the FAA continues to make 
     this program a priority and that sufficient resources and 
     personnel are available to ensure its completion. In 
     addition, the Managers urge the FAA to accelerate areas like 
     environmental reviews and system check out teams. Finally, 
     the Managers request that the FAA keep the Committee on 
     Commerce, Science, and Transportation and the Committee on 
     Public Works and Transportation apprised of any scheduling 
     changes in the program.
       With respect to the modernization of towers the Managers 
     direct the FAA to fully consider the tower modernization 
     needs beyond the approximately 70 Towers currently being 
     addressed under the restructured TCCC program. FAA shall 
     consider the implementation of FAA-developed systems which 
     provide enhanced functionality on a low-cost basis as a near-
     term complement to the restructured TCCC. The Managers 
     believe the FAA should consider a Pilot Project involving 
     several towers which could then be evaluated and potentially 
     expanded to bring modernization operations to as many towers 
     as possible. The FAA should report to the House Committee on 
     Public Works and Transportation and the Senate Committee on 
     Commerce, Science and Transportation on its activities in 
     this regard.


                  4. section 102. o&m from trust fund

     House bill
        Authorizes Trust Fund to support FAA Operations subject to 
     ceilings of 50% of the amounts made available for the AIP, 
     F&E, and R&D programs and that total Trust Fund spending may 
     not exceed 70% of FAA's budget.
     Senate Amendment
       No provision.
     Conference substitute
       House bill.


              5. section 103. FAA operations authorization

     House bill
       Authorizes FAA Operations in the amounts of $4.576 billion 
     for fiscal year 1994; $4.674 billion for fiscal year 1995; 
     and $4.810 billion for fiscal year 1996.
     Senate Amendment
       No provision.
     Conference substitute
       House bill.


                  6. section 103. minimum entitlement

     House bill
       The minimum entitlement in AIP program is raised from 
     $400,000 a year to $500,000.
     Senate Amendment
       No provision.
     Conference substitute
       No provision (enacted in P.L. 103-260, April 19, 1994).


                 7. integrated airport system planning

     House bill
       Minimum funding for integrated airport system planning in 
     the AIP program is increased from 0.5% to 0.75% of AIP 
     program.
     Senate Amendment
       No provision.
     Conference substitute
       No provision (enacted in P.L. 103-260, April 19, 1994).


   8. section 116. military airport set-aside of 2.5% of aip program

     House bill
       Minimum funding requirements for military airports in the 
     AIP program are extended through FY 1996. The number of 
     airports which may be included in the program is increased 
     from 12 to 16.
     Senate Amendment
       Minimum funding requirements are extended indefinitely. 
     There is no numerical limitation on the number of airports in 
     program. Airports to be added to the program are limited to 
     military airports listed in reports of the Defense Base 
     Closure and Realignment Commission. The exception to the 
     limitation of five years participation in the program is 
     eliminated (the exception permits airports which do not reach 
     the small hub level to be redesignated). Eligibility for 
     funding for repair or construction of parking lots, fuel 
     farms, and utilities is extended indefinitely.
     Conference substitute
       The program is extended through FY 1996 and the number of 
     airports which may participate in the program is increased to 
     15. For airports added to the program in the future, there 
     must be a finding that development of the military airport 
     would reduce delays at an airport with more than 20,000 hours 
     of annual delay. The Senate provision eliminating the 
     exception to five year limit is included. Notwithstanding the 
     recent GAO report, the Managers expect the FAA to continue to 
     make grants to military airports for runways, taxiways, land, 
     and aprons. FAA should not necessarily focus on fuel farms, 
     parking lots, and utilities, except where that is important 
     for making the airport compatible with civilian use.


               9. terminal development at small airports

     House bill
       Makes non-hub airports eligible for discretionary AIP 
     funding for terminal development.
     Senate Amendment
       No provision.
     Conference substitute
       No provision (enacted in P.L. 103-260, April 19, 1994).


   10. section 105. explosive detection devices and universal access 
                                 system

     House bill
       Clarifies that explosive detection devices and universal 
     access systems are eligible for AIP funding if they otherwise 
     meet the criteria for funding of security equipment.
     Senate amendment
       Same provision.
     Conference substitute
       House bill.


                  11. Section 104. Innovative Concrete

     House bill
       Amends the policy statement for the AIP program to 
     establish the goal of administering the AIP program to 
     encourage the development and use of innovative concrete and 
     other building materials.
     Senate amendment
       Amends the policy statement to encourage innovative 
     technology generally, in all Trust Fund programs.
     Conference substitute
       The Conference substitute merges the House bill and the 
     Senate Amendment.


                   12. Section 115. Letters of Intent

     House bill
       Provides that AIP grants may be made under letters of 
     intent in the same fiscal year that the letter is issued.
     Senate amendment
       Same provision.
     Conference substitute
       House bill.


                     13. Section 514. Palm Springs

     House bill
       Allows the release of deed restrictions requiring specified 
     land at Palm Springs Airport to be used for airport purposes, 
     subject to certain conditions.
     Senate amendment
       Same provision.
     Conference substitute
       House bill.


           14. Fees for Foreign Repair Stations (see item 32)

     House bill
       Requires the FAA to establish a schedule of fees equivalent 
     to the costs of certifying and inspecting foreign repair 
     stations.
     Senate amendment
       No provision.
     Conference substitute
       Merge the House bill with the Senate amendment in Item 32.


                  15. Section 501. Random Drug Testing

     House bill
       Requires the Secretary of Transportation to complete a 
     rulemaking proceeding in 1 year to determine whether to 
     reduce the rate of random drug testing with regard to 
     aviation personnel. If the rulemaking is not completed on 
     time, the rate of random drug testing is reduced by law to 
     25% of employees per year.
     Senate amendment
       No provision.
     Conference substitute
       The Conference Substitute establishes a 6 month deadline 
     for the completion of a Department of Transportation 
     rulemaking on this issue.
       In February 1994, DOT issued a notice of proposed 
     rulemaking concerning random drug testing rates, under which 
     the testing rates for aviation and other modal industries are 
     tied to the percentage of positive tests for persons working 
     in the particular transportation industry. The Managers urge 
     the Department to move forward on this rulemaking 
     expeditiously.


     16. Section 204. Passenger Facility Charges on Frequent Fliers

     House bill
       Provides that airports may not impose passenger facility 
     charges (PFCs) on frequent fliers and other non-paying 
     passengers.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


                 17. section 204. Justification for PFC

     House bill
       Provides that to approve a PFC, the Secretary of 
     Transportation must find that the application includes 
     adequate justification for each of the projects proposed.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


         18. section 201. term of office for faa administrator

     House bill
       Establishes a five year term of office for FAA 
     Administrators appointed after enactment.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


          19. section 120. soundproofing residential buildings

     House bill
       Continues an exemption permitting funding for the 
     soundproofing of residential buildings at airports which have 
     not completed a Part 150 study.
     Senate amendment
       Same provision
     Conference substitute
       House bill.


20. Section 120. Soundproofing Residential Buildings at Airports where 
                departure procedures were changed by FAA

       House bill.
       Allows funding for the soundproofing of residential 
     buildings at airports which did not do a Part 150 study, if 
     there is increased noise at the airport caused by a revision 
     of departure procedures that occurred in FY 1993.
     Senate amendment
       Same provision.
       House bill.


     21. Section 518. Collective Bargaining at Washington Airports

     House bill
       Provides for collective bargaining for employees of the 
     Metropolitan Washington Airports Authority, with a 
     prohibition of strikes and lockouts, and a requirement of 
     mandatory arbitration of disputes which are not resolved by 
     bargaining.
     Senate amendment
       No provision.
     Conference substitute
       Requires the Secretaries of Transportation and Labor to 
     study the issue of whether employees of the airports operated 
     by the Metropolitan Washington Airports Authority should be 
     given the right to bargain collectively for wages.
       The Managers raised a number of questions concerning this 
     provision during its consideration, which led to the decision 
     to seek further information. The Managers would expect to 
     revisit this issue upon completion of the study.
       One of the specific items which is to be studied may 
     require clarification; with respect to the ``status of 
     employees,'' the Managers contemplate a determination of 
     whether airport employees are state or federal employees, or 
     have some other status.


           22. Section 519. Report on Bilateral Negotiations

     House bill
       Requires a bimonthly report from the Secretary of 
     Transportation on active aviation bilateral negotiations.
     Senate amendment
       No provision.
     Conference substitute
       House bill. The Managers have agreed to this provision so 
     that the committees can be kept apprised of important 
     developments in aviation negotiations. Currently, the 
     Department is providing only a list of meeting dates 
     concerning such negotiations. The report directed by the 
     Conference Substitute requires a summary and analysis of 
     discussions held in active negotiations and informal 
     government consultation. Departmental views in the prospects 
     for reaching a satisfactory agreement should also be 
     included.


                         23. Section 206. Slots

     House bill
       Requires DOT to conduct a study of whether the high density 
     rule should be eliminated or whether an increase in the 
     number of operations should be permitted. The study should 
     also include the impact of prohibiting the withdrawal of 
     domestic slots for international service by U.S. or foreign 
     carriers.
       Provides that slot availability shall not be a factor in 
     establishing Essential Air Service (EAS) requirements; 
     requires the Secretary to take action to ensure that slots 
     are available as needed for EAS communities, subject to a 
     limit of 132 EAS slots at O'Hare; modifies requirements for 
     retaining slots previously used for EAS, so that a slot may 
     be retained only if it is used to provide basic EAS at 
     another point.
       Provides that the Secretary shall not take a slot from a 
     U.S. carrier and award the slot to a foreign carrier, if U.S. 
     carriers are not provided equal access in the foreign country 
     involved.
     Senate amendment
       References an on-going DOT study of the high density rule. 
     Requires the study to consider the impact of existing rules 
     on essential air service and new entrants, and to consider 
     the fairness and desirability of current rules providing for 
     the withdrawal of domestic slots for foreign operations. 
     Requires a rulemaking after the study is completed in 
     November, 1994. The NPRM resulting from the study must be 
     issued by March 1, 1995, and the final rule be June 1, 1995.
       Authorizes exemptions to create additional slots at 
     airports, other than National Airport, for Stage 3 
     operations, essential air service with Stage 3 aircraft, 
     foreign air transportation with Stage 3 aircraft, and new 
     entrants, in exceptional circumstances.
       At National Airport, a carrier now holding slots may obtain 
     an exemption to obtain another slot to operate Stage 3 
     aircraft if the exemption does not increase the total number 
     of slots at National, does not increase hourly operations at 
     National by more than two, does not withdraw slots from any 
     carrier, and does not increase the noise impact.
       Any exemptions issued shall terminate on the effective date 
     of the new regulations.
       DOT is directed to consider eliminating weekend flights 
     from the use-it-or-lose-it rule for slots.
       Until new slot regulations are issued, the Secretary may 
     not withdraw domestic slots at O'Hare Airport for the purpose 
     of reallocating such slots to international service.
     Conference substitute
       The Substitute requires that, in determining what is basic 
     essential air service and selecting an air carrier to provide 
     such service, the Secretary of Transportation shall not 
     consider as a factor whether slots at a high density airport 
     are available for providing such service. The substitute 
     further requires that if essential air service is to be 
     provided from an eligible point to a high density airport, 
     the Secretary shall ensure that the air carrier providing or 
     selected to provide such service has sufficient operational 
     authority at the high density airport to provide such 
     service. The Managers believe that this will lead to the 
     restoration of service to communities that lost it, and 
     access to O'Hare Airport for passengers from communities that 
     have been forced to fly to other airports.
       If necessary to carry out these objectives, the Secretary 
     shall grant exemptions to create slots for air carriers using 
     Stage 3 aircraft or commuter air carriers, unless such 
     exemption, will significantly increase operational delays. If 
     the Secretary finds that an exemption would significantly 
     increase operational delays, the Secretary shall take such 
     action as may be necessary to ensure that an air carrier 
     providing or selected to provide basic essential air service 
     is able to obtain access to the required high density 
     airport. At O'Hare Airport, the Secretary shall not be 
     required to make slots available for essential air service if 
     the number of slots used for such service is at least 132. 
     The Secretary shall take final action within 60 days on an 
     application for operational authority to provide essential 
     air service.
       As a general matter, the Managers expect the Secretary to 
     accommodate the essential air service needs of communities by 
     exemption rather than slot take-aways. The exemptions, of 
     slots where necessary must be provided within 60 days of 
     being requested by the carrier and should be at reasonable 
     times, taking into account the needs of passengers with 
     connecting flights.
       For foreign air transportation, the Substitute provides 
     that the Secretary may, if he finds it to be in the public 
     interest, grant exemptions for operations to provide foreign 
     air transportation at high density airports to air carriers 
     and foreign air carriers. The Secretary may not withdraw a 
     slot from an air carrier to allocate it to a foreign air 
     carrier for foreign air transportation if the withdrawal of 
     that slot will result in the withdrawal of a slot from an air 
     carrier at O'Hare Airport in excess of the total number of 
     slots withdrawn from that air carrier as of October, 31, 
     1993. The Secretary shall not issue exemptions or withdraw 
     slots for the benefit of foreign air carries whose countries 
     deny equal access to our carriers.
       The bill adopts the provisions in the Senate amendment for 
     slots for new entrants (which includes limited incumbents) 
     and the special rules for Washington National Airport. The 
     provisions in the bill on essential air service, foreign air 
     transportation, and new entrants do not apply to National 
     Airport.
       For Washington National Airport, the Conference Substitute 
     adds to the Senate amendment a requirement that any exemption 
     may not result in an increase in a total number of slots at 
     the airport from 7:00 a.m. to 9:59 p.m., and may not increase 
     in any one hour operations by more than two slots. The 
     Managers believe this section should be used in limited 
     circumstances to meet the needs of carriers holding a limited 
     number of slots. Carriers holding numerous slots should be 
     able to adjust their schedules, and thus the flexibility 
     permitted by this schedules, and thus the flexibility 
     permitted by this section should not be available to such 
     carriers. In addition, exemption 5133 is not adversely 
     affected, and if circumstances warrant, the Secretary may 
     permit changes in operations to this exemption holder. The 
     Managers also are aware of a colloquy on June 16, 1994, 
     during the Senate consideration of H.R. 2739 concerning 
     exceptional circumstances. Finally the Conference Substitute 
     merges the studies contemplated by the House bill and the 
     Senate amendment, and includes the provision in the Senate 
     amendment that requires consideration by the Secretary of the 
     advisability of eliminating weekend schedules from the ``use-
     it-or-lose-it'' rule for rataining slots.


 24. Section 108. Repeal of special requirements for general aviation 
                     airports astride a county line

     House bill
       Repeals the requirement that to receive an AIP grant, a 
     general aviation airport astride a county line must have the 
     approval of all incorporated communities within five miles of 
     the airport boundaries.
     Senate amendment
       No provision.
     Conference substitute
       House bill.


                25. Section 522. Child Restraint Systems

     House bill
       Requires airlines to provide a child restraint system if 
     requested by a revenue passenger on behalf of a revenue child 
     passenger.
     Senate amendment
       Requires a study of the availability, effectiveness, cost, 
     and usefulness of a restraint system for a child in a lap, or 
     in a child restraint system attached to the aircraft. The 
     study shall consider the impact on passenger volume, costs to 
     the passengers, and the fatality rate for infants using other 
     modes of transportation.
     Conference substitute
       Senate amendment.


                 26. Continuation of Letters of Intent

     House bill
       No provision.
     Senate amendment
       Authorizes the Secretary to continue to issue Letters of 
     Intent.
     Conference substitute
       No provision. The Managers have concluded that this 
     provision is necessary. The provision has been included as a 
     response to legislative proposals to suspend letters of 
     intent. These proposals have not been passed. The Managers 
     expect the FAA to continue to implement the letter of intent 
     program.


                27. Section 107. Preventive Maintenance

     House bill
       No provision.
     Senate amendment
       Provides that no AIP funds shall be available for the 
     replacement or reconstruction of pavement unless the sponsor 
     has provided assurances that the airport has implemented an 
     effective pavement maintenance/management program. Requires 
     DOT to issue regulations, not later than one year after the 
     date of enactment, to ensure that no product shall be used 
     for pavement maintenance or rehabilitation unless the 
     manufacturer of such product warrants the performance of the 
     product.
     Conference substitute
       Senate provision on AIP assurance. Requires DOT to study 
     the costs and benefits of a requirement that the manufacturer 
     or installer of pavement maintenance and rehabilitation 
     products provide minimum warranties of enhanced minimum 
     specifications for such products, and of the use of 
     insurance, or other means to improve the performance and 
     value of such products.


       28. Section 109. Report on Impacts of New Airport Projects

     House bill
       No provision.
     Senate amendment
       Provides that at least 90 days prior to the approval of a 
     grant application to construct a new large or medium hub 
     airport, the Secretary shall submit to the Congress a report 
     analyzing the anticipated impact of the airport on fees 
     charged to air carriers, air transportation provided in the 
     geographic region of the proposed airport, and the 
     availability and cost of providing air transportation to 
     rural areas in such geographical region.
     Conference substitute
       Senate amendment.


     29. Section 120. Landing Aids and Navigational Equipment Pool

     House bill
       No provision.
     Senate amendment
       Requires Secretary to purchase an inventory of Instrument 
     Landing Systems (ILS); requires spending of not less than $30 
     million a year for FY 1994-1996 to acquire and install these 
     ILS.
     Conference substitute
       Senate amendment on the requirement of funds to be spent 
     for ILSs. Authorizes FAA to allow airports to purchase ILSs 
     under FAA procurement contracts.
       The Managers have found that the current federal 
     procurement processes used to acquire and install precision 
     approach landing aids and navigation equipment, such as 
     Instrument Landing Systems (ILS) are expensive, time 
     consuming and inefficient. Existing constraints have resulted 
     in higher costs, non-standard equipment, and excessive delays 
     in the acquisition and installation of these essential 
     landing aids which continue to impede implementation of 
     important system safety, capacity and efficiency 
     improvements.
       In recent years, numerous actions have been initiated 
     directing the FAA to expand and expedite the procurement of 
     ILS equipment. Statutory mandates have been advanced to 
     authorize improved expenditure levels for the purchase of 
     equipment and to streamline the procurement, acquisition and 
     installation process. Various steps have also been undertaken 
     to encourage the purchase of ILS equipment with Airport 
     Improvement Program (AIP) funds in an effort to augment the 
     cumbersome federal procurement process.
       The Managers believe that additional action is warranted to 
     satisfy substantial ongoing requirements for navigation and 
     landing aids. This legislation mandates increased funding of 
     no less than $30 million annually over the next three years 
     to help accommodate the substantial new requirements that 
     exist for ILS equipment and installation. Moreover, the 
     legislation includes a provision that requires the Federal 
     Aviation Administrator, within 120 days, to establish an 
     expedited process through which airport sponsors may take 
     advantage of cost savings associated with the purchase and 
     installation of Instrument Landing Systems and related 
     equipment under existing or future FAA contracts when using 
     AIP grants.
       The Managers believe that significant cost savings could 
     result for users and the federal government; the current 
     acquisition and installation process could be reduced 
     substantially; and important additional safety, capacity and 
     efficiency requirements could be met.


                      30. Microwave Landing System

     House bill
       No provision.
     Senate amendment
       Prohibits spending for MLSs, except under contracts in 
     effect on January 1, 1994.
     Conference substitute
       No provision. The Managers commend the Federal Aviation 
     Administration for canceling the MLS program on June 2, 1994. 
     The Managers concur with the decision to focus on the 
     adoption of satellite technology.
       The Managers are very supportive of FAA's aggressive 
     approach to testing, approving, and implementing the use of 
     Global Positioning System (GPS) for both en route and landing 
     navigation purposes. During the transition from the current 
     ground-based systems to a satellite system, the Managers 
     understand a period will exist where FAA must operate and 
     maintain satellites and ground-based systems simultaneously. 
     However, the Managers fear that FAA must be planning to use 
     the current ground-based systems as a permanent back-up to 
     the satellite systems.
       If FAA believes satellite navigation may not exhibit the 
     reliability and redundancy found in the current ground-based 
     system, perhaps GPS would not be the low cost, space saving 
     option promised to airlines and general aviation pilots. If 
     FAA believes GPS is reliable, but a back-up system is 
     necessary, the Managers doubt that maintaining both GPS and a 
     ground-based system would be cost beneficial.
       FAA should provide a plan informing the House Committee on 
     Public Works and Transportation and the Senate Committee on 
     Commerce, Science and Transportation of its schedule for 
     approving satellite-based navigation and its schedule for 
     decommissioning ground-based navigation equipment.


      31. Section 202. Assistance to foreign aviation authorities

     House bill
       No provision.
     Senate amendment
       Authorizes FAA to provide safety-related training and 
     operational services to foreign aviation authorities with or 
     without reimbursement, if providing such services would 
     promote safety.
     Conference substitute
       Senate amendment, modified to require FAA to obtain 
     reimbursement if possible.


             32. Section 209. Fees for Service outside U.S.

     House bill
       No provision.
     Senate amendment
       Allows FAA to charge higher fees to cover the cost of 
     providing certification-type services outside the U.S., and 
     to have such additional fees credited to FAA's treasury 
     account.
     Conference substitute
       Senate amendment, merged with House bill Item 14. The 
     manufacture and maintenance of civil aeronautical products 
     have become worldwide enterprises. Safety regulatory efforts 
     to keep pace with the trend of globalization can be hampered 
     by resource constraints. Many foreign civil aviation 
     authorities fully recover their costs for certification work 
     performed both domestically and overseas. This provision 
     permits the FAA to provide safety regulatory services abroad 
     in a more responsive and timely manner.
       Examining one program in particular, the Managers believe 
     the Aircraft Certification Service should be able to offset 
     expenditures made in support of aircraft or airline safety 
     regulatory programs of both U.S. and foreign owned companies 
     outside the United States. These expenditures generally 
     represent the difference between providing the service within 
     the United States and overseas, and include foreign travel 
     and per diem expenses according to U.S. Government rates; 
     time lost in travel by inspectors who would otherwise not 
     have had to incur the lost time in foreign travel; and 
     overhead costs associated with seeking reimbursement.


                           33. Review of FAA

     House bill
       No provision.
     Senate amendment
       Requires FAA to complete a review of its personnel 
     administration, procurement process, and overall 
     organizational structures by March 30, 1994.
     Conference substitute
       No provision. P.L. 103-260, enacted on April 19, 1994, 
     requires an extensive study of options for FAA reform.


        34. Section 503. Repeal of report on collision avoidance

     House bill
       No provision.
     Senate amendment
       Abolishes the requirement for FAA to submit an annual 
     report on collision avoidance systems.
     Conference substitute
       Senate amendment.


                35. Section 509. Aviation Safety Journal

     House bill
       No provision.
     Senate amendment
       Prohibits the FAA from continuing to publish the Aviation 
     Safety Journal.
     Conference substitute
       Senate amendment.


            36. Section 207. Air Carrier Termination Notice

     House bill
       No provision.
     Senate amendment
       Requires air carriers to give 60 days notice before 
     terminating all air service at a non-hub airports. Exceptions 
     exist for emergencies, when service has been operated for 
     less than 180 days, and when a carrier arranges for 
     replacement service. Allows the Secretary to exempt commuter 
     carriers. Authorizes civil penalties for carriers failing to 
     file adequate notice.
     Conference substitute
       Senate amendment modified to require 45 days notice and to 
     limit the total amount of a civil penalty for a failure to 
     give notice to $5,000. The civil penalty could only be a one-
     time fine and could not be aggregated on a per-day, per-
     flight or other basis. The effective date is changed to 
     February 1, 1995.


               37. Section 521. Safety of Juneau Airport

     House bill
       No provision.
     Senate amendment
       Requires DOT to study the safety of approaches to Juneau 
     Airport.
     Conference substitute
       Senate amendment.


                   38. Section 511. Soldotna Airport

     House bill
       No provision.
     Senate amendment
       Allows FAA to grant a release from deed restrictions 
     governing land use at Soldotna Airport. The city must receive 
     the fair market value for property conveyed and must use the 
     amounts received for public airports.
     Conference substitute
       Senate amendment.


                     39. Section 513. Rolla Airport

     House bill
       No provision.
     Senate amendment
       Allows FAA to grant a release from deed restrictions 
     governing land use at Rolla, Missouri Airport. The city must 
     receive the fair market value for property conveyed and must 
     use the amounts received for public airports.
     Conference substitute
       Senate amendment.


      40. Section 516. Relocation of San Jacinto airway facilities

     House bill
       No provision.
     Senate amendment
       Provides that the United States shall be compensated for 
     the costs of replacing the existing airway facilities at the 
     San Jacinto Disposal area, as part of compensation given to 
     the United States for transfer of the San Jacinto disposal 
     area to the city of Galveston.
     Conference substitute
       Senate amendment.


                      41. Augusta Weather Services

     House bill
       No provision.
     Senate amendment
       Directs DOT to provide weather observation services, 
     including direct radio contact with pilots, at Augusta, Maine 
     Airport. DOT is authorized to enter into an agreement with 
     the Maine DOT to provide these services.
     Conference substitute
       No provision.


            42. economic regulation of hawaiian air service

     House bill
       No provision.
     Senate amendment
       Allows the State of Hawaii to regulate intrastate air 
     service in Hawaii, defined as service between points in 
     Hawaii which do not involve carrying passengers as part of a 
     single itinerary on a single ticket for transportation 
     beginning or ending outside the State.
     Conference substitute
       No provision.


        43. section 117. reimbursement for terminal development

     House bill
       No Provision.
     Senate amendment
       Allows AIP grants to pay for bond indebtedness for terminal 
     development at a non-hub airport between January 1, 1992 and 
     October 31, 1992. For such reimbursement the qualifications-
     based procurement of engineering and design services, Davis-
     Bacon, veterans preference, and DBE requirements are waived.
     Conference substitute
       Senate amendment


 44. section 203. passenger facility charge (pfc) may be used to meet 
                            federal mandates

     House bill
       No provision.
     Senate amendment
       Allows PFCs to be used to fund airport compliance with 
     certain federally required mandates to the same extent that 
     AIP funds are allowed to be used for such purposes.
     Conference substitute
       Senate amendment, limited to those federal mandates related 
     to airside development. This section is intended to expand 
     PFC eligibility and not to reduce or eliminate the 
     eligibility of any projects which presently can be funded 
     under the PFC program.
       The Managers are aware of the difficulties that can arise 
     when two federal agencies are charged with responsibility for 
     overseeing activities at a public facility. In particular, 
     the Federal Aviation Administration's mission to ensure the 
     safe and efficient operation of our national system of 
     airports would appear to be at variance with the 
     Environmental Protection Agency's (EPA) responsibility under 
     the Clean Water Act for ensuring that those operations be 
     conducted in an environmentally benign manner. This variance 
     would be most apparent during winter storm events, when the 
     need to apply substantial de-icing fluids would conflict with 
     the need to protect the receiving waters from airport runoff.
       To address this need, Public Law 102-581 made projects 
     necessary for compliance with the Clean Air Act and Federal 
     Water Pollution Control Act eligible for AID funding. 
     However, there may be a need to give the funding of these 
     projects, particularly storm water collection and bio-
     treatment facilities, more attention.
       To help guide the Congress for further action on this 
     matter, the Managers direct that, not later than February 1, 
     1995, the FAA provide the House Committee on Public Works and 
     Transportation and the Senate Committee on Commerce, Science 
     and Transportation with the following information in letter 
     form.
       1. A list of major airport facilities located adjacent to 
     environmentally sensitive areas, including lakes, rivers and 
     coastal zones and the status of their stormwater discharge 
     permits.
       2. A list of stormwater runoff collection and bio-treatment 
     projects at those facilities which have been submitted for 
     funding under the AIP program.
       3. Recommendations on how the AIP and other programs may be 
     improved to ensure that these projects encourage the use of 
     less hazardous materials and receive priority consideration 
     in the distribution of AIP funds.


                45. reimbursement for past expenditures

     House bill
       No provision.
     Senate amendment
       Allows reimbursement from AIP entitlement funds for work 
     carried out during a two year period before a grant agreement 
     is executed. Costs reimbursed may include interest on bonds 
     to finance projects. Projects must be consistent with an FAA 
     approved layout plan, and must conform to all requirements 
     which would have applied under a grant. Projects initiated 
     after 90 days after enactment must receive prior FAA 
     approval. Grants may cover indebtedness incurred to initiate 
     a project or to finance a project.
     Conference substitute
       No provision.


            46. section 118. airport safety data collection

     House bill
       No provision.
     Senate amendment
       Provides that FAA may contract, using sole source or 
     limited source authority, for the collection of airport 
     safety data.
     Conference substitute
       Senate amendment.


                     47. intermodal system planning

     House bill
       No provision.
     Senate amendment
       Expands eligible integrated airport system planning under 
     AIP program to include ``the role which airports play in the 
     transportation system in a specific area.'' For a grant to be 
     made to a planning agency for integrated airport system 
     planning, all large and medium hub airports in the area must 
     be appointed to the planning agency as soon as practicable. 
     For a grant to be made to a planning agency, the airport must 
     be a co-applicant, the project must substantially benefit the 
     airport, and the grant must be in proportion to the benefits 
     to the airport.
     Conference substitute
       No provision.


                 48. Section 526. Innovative Financing

     House bill
       No provision.
     Senate amendment
       Requires DOT to study innovative approaches for using 
     federal funds for airport development, including loans, loan 
     guarantees, and loan insurance.
     Conference substitute
       Senate amendment.


        49. Section 117. Federal share for terminal development

     House bill
       No provision.
     Senate Amendment
       Establishes the federal share for terminal development at 
     75% for large hub airports, 90% for all others (the regular 
     AIP shares).
     Conference substitute
       Senate amendment.


           50. Section 106. Waivers for Foreign Air Carriers

     House Bill
       No provision.
     Senate Amendment
       Allows the Secretary to grant foreign carriers the same 
     waiver from the Noise Act as he may grant to U.S. carriers. 
     The waiver would permit the operation of Stage 2 aircraft 
     between December 31, 2000 and December 31, 2003 if 85% of the 
     carrier's fleet is Stage 3 by 1999, and if there are firm 
     orders which will result in an all Stage 3 fleet by 2003.
     Conference substitute
       No provision.


                   51. Section 106. State Sponsorship

     House bill
       No provision.
     Senate amendment
       Allows a state to sponsor an application for any group of 
     eligible projects at several airports. Current law requires 
     that the projects be ``similar.''
     Conference substitute
       Senate amendment.


               52. Section 504. Advanced Landing Systems

     House bill
       No provision.
     Senate amendment
       Requires FAA to consider expeditious approval of the new 
     generation, low cost, advanced landing system being developed 
     for Department of Defense.
     Conference substitute
       Senate amendment with a modification to give FAA more 
     flexibility in the procedures used to evaluate the system.


                53. Section 517. Safety at Aspen Airport

     House bill
       No provision.
     Senate amendment
       Limits operations at Aspen Airport by general aviation and 
     commuters during the period from 30 minutes after sunset to 
     11:00 p.m. to instrument operations, authorized by air 
     traffic control. VFR operations authorized by ATC may be 
     conducted by a pilot who has operated at least one flight at 
     Aspen in the prior 12 months, and operates an instrument-
     certified aircraft. Aspen Airport must agree not to enforce 
     the ``ski season exception'' to its nighttime curfew and to 
     allow operations permitted by this provision. If Aspen meets 
     these requirements, it may bar other general aviation 
     flights. FAA is directed to issue an NPRM on mountain flying.
     Conference substitute
       Senate amendment with technical and clarifying changes. The 
     Conference Substitute refers to the existing operating hours 
     of Aspen Airport. The Managers understand that the hours of 
     operation can be changed, based on changed circumstances, so 
     long as there is no discrimination between air carriers and 
     general aviation in the availability of these operating 
     hours.
       The Federal Aviation Administration has shown little 
     interest in addressing the safety problems unique to mountain 
     flying. The Managers expect the FAA to complete the Notice of 
     Proposed Rulemaking and to work with mountain airports and 
     pilot groups to prepare general aviation pilots for mountain 
     flying risks.


                   54. Section 208. state income tax

     House bill
       No provision.
     Senate amendment
       Amends existing law limiting states which may impose income 
     tax on flight and cabin crews to the state of domicile and 
     any state in which the employee earns more than 50% of his 
     compensation. The amendment provides that flight and cabin 
     crew who are given leave to perform union duties shall be 
     required to pay income tax only in their state of domicile 
     and a state in which they would have performed more than 50% 
     of their flight duties. Nothing in this section should be 
     construed as applying to federal taxes.
     Conference substitute
       Senate amendment.


                       55. Section 121. PFC Study

     House bill
       No provision.
     Senate amendment
       Requires DOT to study the administration of the rules in 
     the PFC program which govern the handling of PFC revenues by 
     air carriers.
     Conference substitute
       Senate provision. The Substitute requires the Secretary to 
     conduct a review of 14 CFR 158.49(b) to assess the 
     effectiveness of this regulatory provision in light of the 
     objectives of section 1113(e) of the Federal Aviation Act of 
     1958 (authorization for the imposition of passenger facility 
     charges). The Secretary is further directed to take such 
     corrective action as the Secretary determines necessary to 
     address any problems discovered in the review.
       The Managers direct that the study focus on two issues with 
     respect to Section 158.49(b) as currently drafted. One is 
     that public agencies are having difficulty reconciling 
     anticipated PFC income with amounts actually remitted by 
     collecting carriers. The other is that the commingling of 
     PFCs with general carrier revenues poses a risk that if the 
     collecting carrier becomes bankrupt, the Bankruptcy Code may 
     permit a trustee or bankruptcy court to determine that the 
     commingled PFCs are an asset of the bankrupt, estate rather 
     than the public agency, despite the contrary policy stated in 
     Section 158.49(b).


                    56. Section 502. Security Report

     House bill
       No provision.
     Senate amendment
       The date for the annual security report FAA is required to 
     submit is shifted from December 31 to March 3.
     Conference substitute
       Senate amendment.


                         57. Smoke Emergencies

     House bill
       No provision.
       Require FAA to enforce its regulations on pilot vision and 
     smoke emergencies caused by dense smoke in the cockpit on 
     current and future aircraft. Requires a report to Congress on 
     the enforcement of FAA regulations one year after enactment.
     Conference substitute
       No provision. The Senate provision was not accepted by the 
     Managers because it is not needed to solve a safety problem 
     in today's U.S. airline fleet, or remedy a deficiency in the 
     Federal Aviation Administration's safety enforcement program 
     with respect to regulations governing evacuation of smoke 
     from the cockpit.
       Much of the debate on this issue has revolved around 
     whether the cause of certain specific accidents was due to 
     the failure of smoke to be eliminated from aircraft cockpits. 
     In response to an inquiry from the Committee on Public Works 
     and Transportation, the National Transportation Safety Board, 
     the independent agency charged with determining the probable 
     cause of transportation accidents, stated that:
       ``. . . Safety Board accident records failed to support the 
     contentions that smoke in cockpits was a significant factor 
     in accidents that involve U.S. air carriers in the 15 years 
     [preceding] 1991. These accidents would include those 
     mentioned in [the submitted] correspondence.''
       There have been no such accidents since 1991. The Board 
     further stated that:
       ``[It] has no outstanding safety recommendations that 
     address the evacuation of continuous smoke.''


   58. Section 515. Real Estate Transfer and Weather Observations in 
                                 Alaska

     House bill
       No provision.
     Senate amendment
       Requires FAA to convey a building in Lake Minchumina, 
     Alaska to the local government for educational purposes and 
     to convey a building to local government in Fort Yukon for a 
     health clinic. Requires FAA to employ human weather observers 
     in a number of named cities in Alaska.
     Conference substitute
       Senate amendment on the buildings. On weather observers, 
     Conference substitute directs FAA to establish real time 
     weather information for pilots at a specified number of 
     airports in a state with three or more accidents per year 
     involving serious or fatal injuries on scheduled flights with 
     single engine aircraft operating under VFR.


      59. Section 512. Release of Land, Sturgis Airport, Kentucky

     House bill
       No provision.
     Senate amendment
       Allows DOT to grant a release from restrictions in a 
     federal deed requiring property tax be used for airport 
     purposes at Sturgis Municipal Airport. The city must receive 
     the fair market value for the property conveyed and must use 
     the amounts received for public airports.
     Conference substitute
       Senate amendment.


60-63. Sections 110-113. Revenue Diversion and Airport-Air Carrier Fee 
                                Disputes

       These sections are intended to provide additional 
     enforcement against illegal diversion of airport revenue and 
     a mechanism to settle disputes involving airport fees charged 
     or sought to be imposed on airlines. The legislation 
     specifically refers to ``air carriers and airports'' 
     throughout Title V to ensure that fee disputes only involving 
     airports and airlines are resolved, so that the national air 
     transportation system is not threatened with lockouts.


                   60. Section 112. Revenue Diversion

     House bill
       Provides that an airport's use of revenues generated by the 
     airport or local taxes on aviation for purposes other than 
     capital or operating expenses of the airport shall be 
     considered as a factor militating against an AIP 
     discretionary grant.
     Senate amendment
       Requires the Secretary to establish, within 90 days from 
     the date of enactment, policies and procedures to enforce 
     grant assurances requiring airports to develop fee structures 
     to make their operations self sustaining, and prohibiting 
     diversion of revenues.
       The new policies shall prohibit, at a minimum: revenue 
     diversion through direct or indirect payments which exceed 
     the value of services and facilities provided to the airport; 
     use of airport revenues for general economic development, 
     marketing and promotional activities unrelated to an airport; 
     payments in lieu of taxes exceeding value of service 
     provided; and payments to compensate for lost tax revenues 
     exceeding stated tax rates. The policies shall provide for 
     internal controls, auditing, and FAA personnel sufficient to 
     monitor assurances.
       If an airport sponsor violates the assurance against 
     revenue diversion or locks out an airline which pays its 
     fees, U.S. district courts have the authority to enjoin these 
     violations, upon request of the Secretary. If an airport 
     violates the assurances against revenue diversion and refuses 
     to take corrective action directed by the Secretary, the 
     Secretary shall not approve new AIP applications or new 
     applications for approval of PFCs.
       Civil penalties may be imposed for violations of assurances 
     against revenue diversions. The maximum civil penalty for a 
     continuing violation shall not exceed $50,000.
     Conference substitute
       1. In general. Senate amendment. House bill with exception 
     for airports which do not spend revenues off the airport in 
     excess of amounts spent in 1994, plus an annual increase 
     corresponding to an increase in the consumer price index. In 
     administering the modified House provision on revenue 
     diversion and AIP discretionary grants, the Secretary shall 
     consider the amount being diverted by the airport operator 
     compared to the amount being sought in discretionary grants 
     in reviewing the grant application.
       The Conference Substitute also adds a prohibition, 
     effective after date of enactment, against a State or 
     subdivision collecting a new tax, fee, or charge which is 
     imposed exclusively upon any business located at an airport 
     or operating as a permittee of the airport, other than a tax, 
     fee, or charge utilized for airport or aeronautical purposes. 
     This prohibition applies only to new taxes imposed 
     exclusively on businesses located at airports or permittees. 
     It does not apply to general taxes on all businesses, 
     although a state or subdivision would be prohibited from 
     imposing a general tax that purports to apply to all 
     businesses when in reality it applies only to airport 
     businesses.
       3. Civil Penalties. The bill provides authority for the 
     Secretary of Transportation to impose civil penalties up to a 
     maximum $50,000 on airport sponsors for violations of the AIP 
     sponsor assurance on revenue diversion. The Managers intend 
     this provision to send a strong message to airport sponsors 
     and local and state governments to discourage and prevent 
     unlawful diversion of airport revenues, and to strengthen DOT 
     and FAA's ability to enforce the law. The Managers intend 
     that the Secretary use this authority to create a strong 
     disincentive for those who may be tempted to divert airport 
     revenues, and to ensure that violations are corrected and 
     that any funds that were used illegally are restored to the 
     airport and the airport system for use for legitimate 
     purposes. Civil penalties may not be imposed on any 
     individual, and the Managers intend that the Secretary use 
     this authority only as a last resort after all other means of 
     correcting violations have failed and the airport sponsor 
     willfully continues to violate the law. The Managers want to 
     make certain that the Secretary will use the authority given 
     him in the bill to compromise civil penalties, specifically 
     by providing the airport sponsor with a reasonable period of 
     time, after a violation has been clearly identified to the 
     airport sponsor, to take corrective action to restore the 
     funds or otherwise come into compliance before a penalty is 
     assessed.


           61. Section 110. Policy Statement on Airport Fees

     House bill
       No provisions.
     Senate amendment
       Adds policy statements that airport rates and fees must be 
     reasonable and used only for purposes not prohibited by the 
     Act, that airports should be as self sustaining as possible, 
     and that airports should not seek to create surpluses which 
     exceed the amounts needed for the airport system, including 
     reasonable reserves and allowance for contingencies.
     Conference substitute
       Senate amendment. The Managers carefully considered the 
     issue of airport revenue surpluses. Reaching a middle ground 
     on this aspect of airport finances was central to the 
     consensus expressed in the Conference language on airport 
     rates and charges.
       As the Committee sets forth in Section 110 of the Bill 
     (Declaration of Policy), a revenue surplus may be used for 
     such normal business practices as setting aside a reserve of 
     funds to accommodate the unevenness in receipts over time, to 
     cover unanticipated contingencies, to achieve favorable 
     capital financing agreements, and for other recognized 
     purposes. Even the smallest airports typically face one or 
     another of these operational realities, and need to maintain 
     a revenue surplus to address them.


               62. section 112. airport financial reports

     House bill
       Airports receiving grants must submit annual reports of 
     funds paid and services provided to other units of 
     government.
     Senate amendment
       Provides that the secretary shall prescribe a format for 
     airlines to file an annual report on airport finances, 
     surpluses, and concession revenues.
     Conference substitute
       Combined House bill and Senate amendment. This legislation 
     is not intended to bar reasonable reserves and other funds to 
     facilitate financing and cover contingencies. To assure that 
     revenue surpluses are not abused, the Conference Substitute 
     takes care to assure that the amount of revenue surplus would 
     be reported publicly each year by those airports covered by 
     Section 112 of the bill (Airport Financial Reports). This 
     public reporting would highlight any situation in which the 
     surplus balance is clearly out of line with the overall 
     financial status of the airport.


              63. section 113. procedure for fee disputes

     House bill
       No provision.
     Senate amendment
       Allows airport fees to be set by compensatory or residual 
     methodologies. Within 90 days of enactment, the Secretary 
     must develop new procedural regulations for complaints 
     against unreasonable airport fees. Under these procedures, 
     the Secretary must issue a final order within 120 days of the 
     filing of a complaint. The case must be assigned to an ALJ, 
     or dismissed, 30 days after it is filed. The ALJ must issue a 
     decision 90 days after the filing of the complaint. If 
     Secretary doesn't meet the deadline, the ALJ decision becomes 
     final. If a case is filed, and not dismissed, fee increases 
     shall be paid into escrow, pending final decision. If fee is 
     paid into escrow, the airport may not ``lock out'' a carrier.
       The section does not apply to fees under agreements, fees 
     imposed under financing agreement before date of enactment, 
     or existing fees which have not been challenged as of date of 
     enactment. The section shall not adversely affect rights 
     under existing agreements or financing covenants.
     Conference substitute
       The Senate provision is modified to allow airport to assure 
     timely repayment of fees determined to be unreasonable by a 
     letter of credit, surety bond, or other suitable credit 
     facility.
       The Managers intend these procedures to require the 
     Secretary to act within a specific time frame. Many had 
     sought to add a provision that would, in the event the 
     Secretary failed to either set a dispute for hearing or 
     dismiss a complaint, provide access to federal courts to 
     litigate the reasonableness of an airport fee. Instead, the 
     Managers provided a process requiring the Secretary to act. 
     The Managers recognize the concerns raised, but at this point 
     prefer that the Department act within the time frames set up 
     in the Conference Substitute. However, if DOT fails to meet 
     its obligations under the substitute, this Act is not 
     intended to eliminate any rights of complainants to ask a 
     court to order DOT to comply with the law. Moreover, an order 
     dismissing a complaint on the grounds that no significant 
     dispute exists, is an order subject to review by the Courts 
     of Appeal of the United States as provided under Sec. 1006 of 
     the Federal Aviation Act.
       The Managers also are aware that there may be situations 
     that involve an airport agreement with air carriers, and that 
     airport loses a carrier, thereby triggering recalculation of 
     fees to cover the shortfall in income. In most, if not all of 
     these types of situations, airport agreements cover such 
     increases. In the event an air carrier sought to challenge 
     the fee increase (whether or not an airport has an agreement 
     with its air carrier), the Department would be able to look 
     at the entire picture and dismiss, if the situation warrants, 
     such a complaint.


                       64. Section 205. Gambling

     House bill
       No provision.
     Senate amendment
       Prohibits transportation or use of gambling devices on any 
     aircraft operated by a United States' air carrier or a 
     foreign air carrier in foreign air transportation. Also 
     requires a study of the effects on aviation safety of 
     gambling on electronic interactive video systems on passenger 
     aircraft. In addition, the study should evaluate the 
     competitive effects of permitting foreign air carriers, but 
     not United States air carriers to install, transport, and 
     operate gambling applications on electronic interactive video 
     system, on board aircraft.
     Conference substitute
       Senate provision. Requires an additional study of whether 
     gambling should be allowed on aircraft operated in foreign 
     air transportation, including any legislation needed to 
     implement the resulting recommendations.
       This section only prohibits air carriers from carrying 
     gambling devices defined as devices which, when operated, can 
     deliver money in any form (i.e., cash or credit), or property 
     as the result of the application of an element of chance. 
     This section does not bar airlines from carrying game 
     machines which do not have the prohibited money or property 
     delivering capability.


  65. Section 505. Asbestos removal, vacant air force station, Marin 
                           County, California

     House bill
       No provision.
     Senate amendment
       Authorizes appropriations from the Trust Fund to FAA of 
     such amounts as may be necessary to carry out asbestos 
     abatement activities, and the demolition and removal of 
     buildings at the site of the vacant Air Force station in 
     Marin County, California. The amount from the Trust Fund 
     shall not exceed FAA's share of the costs of carrying out 
     such activities.
     Conference substitute
       Senate provision, with technical changes to delete 
     references to Trust Fund legislation.


                         66. Increased Funding

     House bill
       No provision.
     Senate amendment
       Authorizes an upward adjustment in a grant to the Aurora, 
     Illinois airport of $750,000, to fund increased land 
     acquisition costs determined in judicial proceeding.
     Conference substitute
       Senate amendment.


      67. Section 524. Usage of Radar at Cheyenne, Wyoming Airport

     House bill
       No provision.
     Senate amendment
       Expresses the sense of the Senate that DOT shall revise its 
     cost benefit analysis to take account of projected military 
     enplanement and cost savings with regard to radar 
     installations at joint-use civil military airports; and that 
     the FAA Administrator should reevaluate the airport radar 
     needs at Cheyenne, Wyoming Airport.
     Conference substitute
       Senate amendment.


               68. Section 510. Monroe County Improvement

     House bill
       No provision.
     Senate amendment
       Authorizes FAA to grant a release from deed restrictions 
     requiring the use of Sellman Field in Monroe, Louisiana for 
     aviation purposes. Any proceeds from using such land for non-
     aviation purposes must be used for aviation purposes.
     Conference substitute
       Senate amendment.


      69. Section 523. Inspector General/Washington, D.C. Airport

     House bill
       No provision.
     Senate amendment
       Expresses sense of the Senate that DOT IG has oversight 
     responsibility and may conduct audits and investigations 
     relating to funds appropriated by Congress for programs or 
     operations at Dulles or National Airports.
     Conference substitute
       Senate amendment.


              70. Section 507. Information on Disinsection

     House bill
       No provision.
     Senate amendment
       Requires DOT to publish and periodically revise a list of 
     countries that require disinsection of aircraft landing in 
     such countries, while passengers and crew are on board.
     Conference substitute
       Senate amendment. The Managers recognize the need to inform 
     the flying public of the countries which require the use of 
     pesticides on airplanes while passengers are aboard. The 
     Department of Transportation has announced its intention to 
     require U.S. and foreign airlines, and their agents, 
     including travel agents, to inform passengers at the time 
     they book flights whether the flight will be sprayed while 
     passengers are aboard. To further disseminate this 
     information, the Managers also encourage the Federal Aviation 
     Administration, and the Department of State to provide such 
     information to travelers through existing telephone passenger 
     advisory services.


                    71. section 508. contract tower

     House bill
       No provision.
     Senate amendment
       Requires Secretary of Transportation to take appropriate 
     action to assist Chandler, Arizona, Aberdeen, South Dakota 
     and other appropriate communities to obtain installation of a 
     Level I Contract Tower.
     Conference substitute
       Senate amendment, without references to specific sites.


                 72. section 525. Policy on North Korea

     House bill
       No provision.
     Senate amendment
       Sense of the Senate concerning North Korea.
     Conference substitute
       Senate provision with minor House changes.


                             73. Oversight

     House bill
       No provision.
     Senate amendment
       Sense of Senate seeking hearing of Whitewater matter.
     Conference substitute
       No provision.


                   74. Section 526. Religious Liberty

     House bill
       No provision.
     Senate amendment
       Sense of Congress concerning religious liberty.
     Conference substitute
       Senate provision with House amendment making it a sense of 
     the Senate.


                      75. KI Sawyer Air Force Base

     House bill
       No provision.
     Senate amendment
       Directs FAA Administrator to carry out on-going radar 
     approach control activities at KI Sawyer AFB, Michigan.
     Conference substitute
       The Managers have agreed to drop Section 416 of the Senate 
     passed bill. The Managers determined, based on assurances 
     from the FAA in letters to Senator Levin and Congressman 
     Stupak, that the needs of KI Sawyer would be met. The FAA 
     letter specifically stated ``. . . the FAA plans to 
     completely take over and operate the existing ASR-7. FAA will 
     install FAA approved and supportable equipment, will maintain 
     the system, and will operate approach control services.''

 Joint Explanatory Statement of the Conference Committee Statement of 
Managers on H.R. 2739 Title III as Passed by the House on 10/13/93 and 
   H.R. 2739 Sections 204 and 306 as Passed by the Senate on 6/16/94.

       The managers of the part of the House and Senate at the 
     conference on the disagreeing votes of the two houses on 
     provisions of the House bill H.R. 2739 submit the following 
     joint statement to the House and Senate in explanation of the 
     actions agreed upon by the managers regarding H.R. 2739 Title 
     III as passed by the House and H.R. 2739 Sections 204 and 306 
     as passed by the Senate and recommended in the accompanying 
     conference report. The managers agree the authorizations and 
     explanations are as specified in House Report 103-225 and 
     Senate Report 103-181 as applicable in addition to the 
     material contained herein.


     section by section analysis--senate bill h.r. 2739 section 206

     Present Law
       No provision.
     Senate Provision
       This Section authorizes the FAA to enter into cooperative 
     agreements with Federal and non-Federal entities to pursue 
     research, engineering, and developmental activities on a 
     cost-shared basis.
     House Provision
       No Provision.
     Conference Agreement
       The House concurs with the Senate provision. This provision 
     will provide the FAA with the authority to enter into 
     cooperative agreements with Federal and non-Federal entities 
     to pursue research, engineering and development activities. 
     Under this program, the Administration may enter into cost-
     sharing agreements with aviation industry consortia along 
     with other federal agencies to jointly develop products which 
     will benefit the travelling public. This authority could also 
     provide an expedited mechanism to develop needed technology, 
     to assure that all parties involved in a particular activity 
     work together, and to leverage research dollars. The 
     cooperative program has a focused purpose--to allow the FAA 
     to work with industry on a number of emerging issues as the 
     air traffic control system is modernized.


                   senate bill h.r. 2739 section 304

     Present Law
       No provision.
     Senate Provision
       This section requires the FAA and NASA to conduct a study 
     to identify technologies for noise reduction for propeller 
     driven aircraft and rotorcraft. The goal of the study is to 
     determine the status of research and development in propeller 
     and rotary wing aircraft and to determine if additional 
     research is necessary. The section requires delivery of a 
     report not later than 280 days after enactment of this Act. 
     The Section also states that if the Administrators of NASA 
     and the FAA determine that additional R&D is necessary and 
     would contribute to the development of quiet aircraft 
     technology, the agencies shall conduct an appropriate 
     research program to develop safe, effective and economical 
     noise reduction technology which can also be applicable to 
     existing aircraft.
     House Provision
       No Provision.
     Conference Agreement
       The House concurs with the Senate provision. The Conferees 
     emphasize the important noise research presently underway as 
     authorized by the Section 304 of P.L. 102-581, the Airport 
     and Airway Safety, Capacity, Noise Improvement, and 
     Intermodal Transportation Act of 1992. The Conferees 
     acknowledge that many citizens residing near airports are 
     adversely affected by noise from propeller driven aircraft 
     and rotorcraft. The Conferees note that the study and 
     research authorized in this section will assist in developing 
     the technologies necessary to minimize noise from small 
     aircraft. The Conferees agree that none of the funds to be 
     used to conduct this study shall be allocated from existing 
     noise reduction programs, and that the report shall be 
     delivered to the Senate Committee on Commerce, Science, and 
     Transportation and the House Committee on Science, Space, and 
     Technology.


                house bill h.r. 2739 title 3 section 301

     Present Law
       No provision.
     Senate Provision
       No provision.
     House Provision
       Provides the short title for Title 3 of the bill.
     Conference Agreement
       The Senate accepts the House short title.


                House Bill H.R. 2739 Title 3 Section 302

     Present Law
       Section 302 of P.L. 102-581 authorizes appropriations for 
     FY 1994 under section 506(b)(2) of the Airport and Airway 
     Improvement Act of 1982 (49 U.S.C. App. 48102 (a)(2)) of 
     $297,000,000.
     Senate Provision
       No equivalent provision.
     House Provision
       Section 302 authorizes appropriations from the Airport and 
     Airway Trust Fund for Federal Aviation Administration (FAA) 
     research, engineering, and development as follows:

                         AUTHORIZATION H.R. 2820                        
                       [In thousands of dollars]                        
------------------------------------------------------------------------
                                                   Fiscal years--       
                                           -----------------------------
                                              1994      1995      1996  
------------------------------------------------------------------------
00.01Management and analysis..............    11,297    12,646    14,131
00.02Capacity and air traffic management                                
 technology...............................    76,939    84,000    92,402
00.03Communications, navigation and                                     
 surveillance.............................    35,675    39,242    43,167
00.04Weather..............................     1,908     2,098     2,307
00.05Airport technology...................     7,509     8,260     9,086
00.06Aircraft safety technology...........    40,175    44,192    48,611
00.07System security technology...........    35,430    39,523    43,475
00.08Human factors/Aviation medicine......    27,756    31,716    34,887
00.09Environment and energy...............     7,586     8,124     8,716
00.10Innovative/Cooperative research......     5,725     5,199    5,718 
                                           -----------------------------
      Total...............................   250,000   275,000  302,500 
------------------------------------------------------------------------

     Conference agreement
       The Conferees agree to the following provisions for the FAA 
     Research, Engineering, and Development for FY 1995 and FY 
     1996:

                         AUTHORIZATION H.R. 2820                        
                        [In thousands of dollars]                       
------------------------------------------------------------------------
                                                         Fiscal year--  
                                                     -------------------
                                                        1995      1996  
------------------------------------------------------------------------
00.01Management and analysis........................     7,673     8,056
00.02Capacity and air traffic management technology.    80,901    84,946
00.03Communications, navigation and surveillance....    39,242    41,204
00.04Weather........................................     2,909     3,054
00.05Airport technology.............................     8,660     9,093
00.06Aircraft safety technology.....................    51,004    53,554
00.07System security technology.....................    36,604    38,434
00.08Human factors/aviation medicine................    26,484    27,808
00.09Environment and energy.........................     8,124     8,532
00.10Innovative/cooperative research................     5,199     5,459
                                                     -------------------
      Total.........................................   266,800   280,140
------------------------------------------------------------------------

       The objectives of the FAA RE&D program, as stated in the FY 
     1994 RE&D plan, are:
       a) reducing civil aviation fatality rate by at least 10% by 
     2000:
       b) reducing the number of accidents attributable to weather 
     by 20% by 2000;
       c) developing advanced aircraft fire safety and 
     crashworthiness technologies by 2005;
       e) fielding a Wide-Area differential global positioning 
     system (GPS) to provide satellite based navigation for all 
     flight phases down to Category I precision approach minima by 
     1998; and
       f) anticipating new threats and develop and implement new 
     security philosophies, technologies, and systems that operate 
     effectively with minimal interference to passengers and 
     carriers.
       P.L. 102-581 contains the authorization levels for these 
     programs for Fiscal Year 1994.
       The Conferees are aware that the funds to pay for the 
     research programs are collected through the passenger tax of 
     ten percent per ticket, which goes into the Airport and 
     Airways Trust Fund. Therefore, it is appropriate that those 
     who fly, pay for the aviation research designed to make 
     flying even safer than it already is, which is the intent of 
     this legislation.
       Since there is an uncommitted balance of $4.4 billion in 
     the trust fund, the increases recommended by the Committee 
     come from unobligated tax revenues and interest. The interest 
     alone on the cash balance which last year, including 
     obligated and unobligated funds, was over one billion 
     dollars. In addition, last year $1.64 billion from the trust 
     fund, which was the result of an increase of two percent for 
     the passenger ticket tax, went to deficit reduction. 
     Therefore, the flying public has paid a fair share for the 
     FAA research programs and deficit reduction.
       The recommended increase in FY 1996 is directed toward 
     increasing the activities in each of the specific program 
     areas. The Conferees note the Airport and Airway Improvement 
     Act (as amended by P.L. 1001-223 Section 105(b)(3)) provide 
     authority for the transfer of funds up to 10% in any fiscal 
     year of the amount authorized for that fiscal year, which 
     gives the FAA flexibility to address new areas, if needed in 
     the future. The balance of this Section describes the areas 
     where the Conferees place special emphasis.
       The Conferees note that the FAA has established a Civil 
     Tiltrotor Advisory Committee, as required by P.L. 102-581. 
     Some have suggested that this new technology could offer one 
     means of addressing future capacity and delay problems. The 
     Conferees encourage continuation of this effort.
       The Aviation Centers of Excellence were established by 
     Section 9209 of Public Law 101-508. The legislative intent of 
     the Aviation Centers of Excellence program was that it would 
     be a valuable means of fostering the continued advance of the 
     aviation technology base. By partnering with institutions 
     possessing existing expertise, selected by a peer review 
     process that is based on the scientific merits of the 
     potential center, the government gains significant leverage 
     for the federal investment and access to the 
     interdisciplinary base of knowledge that is critical to the 
     effective continued advance of aviation technologies. The 
     first Center was jointly established in 1993 at Rutgers 
     University and the Georgia Institute of Technology and marked 
     a positive beginning for this program.
       Areas of research and development for which the next Center 
     should be able to make important contributions include 
     crashworthiness, aging aircraft, flight safety, human 
     factors, and propulsion. Advances in these areas are 
     important to the long-term improvement in aviation efficiency 
     and safety. To maximize the impact of each dollar invested, 
     the Administrator is encouraged to select an institution that 
     has existing expertise in these areas such as the National 
     Institute for Aviation Research at Wichita State University, 
     North Carolina State University, Embry-Riddle Aeronautical 
     University, Northwestern University, or other qualified 
     universities as originally discussed in Committee report 101-
     585 to accompany P.L. 101-508.
       The Conferees' authorization provides funding for an 
     additional Aviation Center of Excellence. Because of the 
     existence of excellent ongoing university aviation research 
     programs, FAA should not delay selecting an additional 
     center. The Conferees would anticipate such selection during 
     calendar year 1994.
       Public Law 100-591 mandated that not less than 15 percent 
     of FAA's research budget be directed toward long-term 
     research projects. The definition of long-term research 
     projects refers to those that are unlikely to result in final 
     rulemaking within 5 years or in initial installation of 
     operational equipment within 10 years after the date of the 
     beginning of the projects.
       The Conferees reaffirm their position that 15 percent of 
     research funding be for long-term research projects.
       Public Law 101-508 established an Aviation Research Grant 
     program in Section 9205. The provision establishes merit 
     review procedures for awarding of grants to universities. 
     Section 9202 of P.L. 101-508 mandates that not less than 
     three percent of the total research funds shall be available 
     for university grants.
       The Conferees direct FAA to continue the university grants 
     program and to make at least three percent of the total 
     research funds available for university grants.
       Section 4 of the Aviation Safety Research Act of 1988, 
     Public Law 100-591, requires an annual research, engineering 
     and development plan to be prepared by the Federal Aviation 
     Administration and submitted to Congress. The most recent 
     version, May 1994, is both professionally done and contains 
     extensive information.
       In the research provisions of this legislation that require 
     a report, such as Section 304(e) dealing with Cabin Air 
     Quality, it is expected that the report will become part of 
     the annual ``Federal Aviation Administration Plan for 
     Research, Engineering and Development.''
       However, the managers believe that this and future reports 
     can be simplified, improved and more cost-effective. 
     Therefore, we request that in the future, the report for the 
     research plan be modelled after the FY 1995 R,E&D Budget 
     Justification, which has the following sections:
       ``I. Program Description'' including Budget Item Number; 
     Project Number; Project Title; and Program Manager.
       ``II. Funding'' including two years prior and four years 
     beyond the budget requested. The budget being requested 
     should be broken down into in house and contractor funding.
       ``III. Contractor Activities'' including each contractor, 
     the item/description and funds.
       ``IV. Major Budget Year Milestones.''
       ``V. Major Prior/Current Year Accomplishments.''


                         h.r. 2739 section 303

     Present law
       No provision.
     Senate bill
       No provision.
     House bill
       Direct the Administrator, in consultation with the heads of 
     other federal agencies, to establish a coordinated program to 
     conduct research on technologies that enhance aviation 
     competitiveness.
     Conference agreement
       The Conferees strongly agree that the Administrator, in 
     consultation with the heads of other appropriate Federal 
     agencies, establish a coordinated program to conduct research 
     on aviation technologies that enhance U.S. competitiveness.
       The Conferees direct the FAA to work jointly with other 
     appropriate Federal agencies, to conduct research on aviation 
     technologies that enhance aviation, provide direct and 
     indirect industry involvement, and also focus on technology 
     that can be used by, not transferred to, to the private 
     sector. Candidates for joint research programs include: (1) 
     next generation satellite communications, (2) advanced 
     airport and airplane security, (3) environmental technologies 
     such as noise and air pollution, (4) advanced aviation safety 
     programs, and (5) technologies to improve airport and airway 
     capacity. These areas were among the highest priorities 
     presented in witness testimony and from other independent 
     studies.
       The FAA R,E&D programs contain several research efforts 
     that have civilian and military applications. As such, the 
     FAA has an opportunity to work with both the private sector 
     and the defense sector to improve U.S. aviation technology 
     and competitiveness. There are numerous examples of dual use 
     technologies that would fall into this category. One of those 
     with the greatest potential payoff is satellite-based radio 
     navigation technology such as the Global Positioning System 
     (GPS). The GPS was developed by the military, but could be 
     utilized by the civilian aviation sector. However, many 
     technical issues remain to be resolved before the system is 
     100 percent reliable.
       One estimate is that a fully functional civil GPS 
     navigation program could save the aviation industry hundreds 
     of millions of dollars per year. Because GPS is more accurate 
     than existing navigation systems, the savings would come from 
     increased capacity and reduced fuel use as the result of 
     reduced route separation standards, instrumented approaches 
     to all runways, and optimum routing. There are several other 
     similar examples.
       It is the Conferees intent that the aviation industry, 
     including those in the defense sector, be provided the 
     opportunity to receive FAA grants to conduct aviation 
     research. This program would enable the industry to make the 
     transition from defense to the civilian markets, and 
     accelerate the availability of useful civilian aviation 
     technology.
       The Conferees also direct the FAA and other appropriate 
     agencies involved to develop procedures for contracts and 
     grants that would not be an impediment to the research 
     programs. There are instances in Federal Government programs 
     where mandated paperwork and procedures take a significant 
     funding portion of the research grant. The intent is to 
     develop procedures for administering contracts and grants, 
     including those to industry, that will not impede joint FAA-
     industry research programs.
       Funds for this program shall come from the totals 
     authorized in Section 302 and shall not constitute increased 
     funding over those levels.


                         h.r. 2739 section 304

     Present law
       No provision.
     Senate bill
       No provision.
     House bill
       Direct the Administrator to establish a research program in 
     cabin air quality.
     Conference agreement
       The Conferees direct the Administrator, in consultation 
     with the heads of other appropriate agencies to establish a 
     research program to determine if any cabin air conditions 
     currently exist on domestic aircraft that could be harmful to 
     airline passengers and crew, and to study the risk of 
     contracting infectious diseases during flights.
       The Conferees are aware of concerns that the current 
     practice of reducing the ratio of fresh to recirculated air 
     in the cabin could cause the symptoms of ill health described 
     by witnesses at House Science Committee hearings. Therefore, 
     in the research program established, FAA is to examine the 
     health impact of increasing the supply of fresh cabin air at 
     levels between 50 percent fresh air and 100 percent fresh 
     air. This represents intermediate levels between the existing 
     procedures (50:50 mixture fresh to recirculated) and those of 
     several years ago (100:0 fresh to recirculated). Experts have 
     indicated that higher levels of fresh air circulation using 
     other ratios are important to include in testing. In 
     conducting the research program, the Committee directs FAA to 
     work with other Agencies, including the Center for Disease 
     Control (CDC).
       The Conferees also establish the research goals of the 
     program: (1) to determine what current cabin air conditions 
     could be harmful to passengers and crew health; (2) to 
     determine what changes in cabin air conditions would reduce 
     or eliminate the risk of illness or discomfort; and (3) to 
     conduct a long-term research program. In conducting the 
     program, the Administrator is encouraged to examine all 
     phases of cabin occupancy from enplanement to disembarkation, 
     including consideration of cabin conditions while the 
     aircraft is on the ground.
       The Conferees urge the Administrator to encourage the 
     airlines to review, monitor, and appropriately revise cabin 
     operation to assure the comfort and protection of the health 
     of passengers and crew. The Conferees also urge the 
     Administrator to establish a system of reporting that would 
     facilitate the collection of data and assist in the timely 
     and scientific identification of possible problems to health 
     or comfort.
       The Conferees direct the FAA to work with the aviation 
     community in carrying out the cabin air research programs and 
     to submit a report to Congress within six months. The bill, 
     as reported, directs that the funds to carry out the study 
     shall come from those authorized in Section 302.


                         h.r. 2739 section 305

     Present law
       No provision.
     Senate bill
       No provision.
     House bill
       This provision limits the funds authorized to be 
     appropriated in the Act and states that these funds are not 
     authorized to be appropriated after fiscal year 1996.
     Conference agreement
       The Conferees agree to accept the Senate position.


                         h.r. 2739 section 306

     Present law
       No provision.
     Senate bill
       No provision.
     House bill
       This provision prohibits the fraudulent use of ``made in 
     America'' labels and directs the head of each office within 
     FAA that conducts procurement to ensure that such 
     procurements are conducted in compliance with the ``Buy 
     American Act.''
     Conference agreement
       The Conferees agree to accept the House language.


                         h.r. 2739 section 307

     Present law
       No provision.
     Senate bill
       No provision.
     House bill
       This provision expresses the sense of the Congress that any 
     recipient of a grant by this Act should purchase, when 
     available and cost-effective, American made equipment and 
     products.
     Conference agreement
       The Conferees agree to accept the House language.


       Title IV. Expenditures from Airport and Airway Trust Fund

     Present law
       The present Airport and Airway Trust Fund (``Trust Fund'') 
     (sec. 9502(d) of the Internal Revenue Code) authorizes 
     amounts to be paid out of the Trust Fund for obligations 
     incurred under the previous airport and airway authorization 
     Acts from 1970 and 1944 (as those Acts were in effect on the 
     date of enactment of the Airport Improvement Program 
     Temporary Extension Act of 1994). Also, amounts are 
     authorized to be paid out of the Trust Fund for obligations 
     incurred under the Federal Aviation Act of 1958, as amended, 
     which are attributable to planning, research and development, 
     construction, or operations and maintenance of air traffic 
     control, air navigation, communications, or supporting 
     services for the Federal airway systems. In addition, 
     administrative expenses of the Department of Transportation 
     attributable to Trust Fund-related activities described above 
     are authorized from the Trust Fund.
       Amounts in the Trust Fund are available (as provided by 
     Appropriations Acts) for making expenditures before October 
     1, 1995.
     House bill
       The House bill extends the Trust Fund expenditure authority 
     through September 30, 1996, and allows expenditures from the 
     Trust Fund for obligations incurred under the House bill's 
     airport and airway authorizing Act.
     Senate amendment
       The Senate amendment allows expenditures from the Trust 
     Fund for obligations incurred under the Senate amendment's 
     airport and airway authorizing Act.
     Conference agreement
       The conference agreement extends the Trust Fund expenditure 
     authority through September 30, 1996, and allows expenditures 
     from the Trust Fund for obligations incurred under the 
     conference agreement's airport and airway authorizing Act. 
     The conference agreement also makes technical, conforming 
     changes to reflect the codification of the airport and airway 
     Acts referred to in section 9502(d) of the Internal Revenue 
     Code.

    Section 601--Preemption of Intrastate Transportation of Property

     House bill
       No provision.
     Senate amendment
       The Senate provision preempted State and local law 
     regarding trucking rates, routes and services of ``intermodal 
     all-cargo air carriers''. Intermodal all-cargo air carriers 
     included: air carriers, indirect air cargo air carriers, 
     motor carriers that are affiliated with an air carrier 
     through common controlling ownership and motor carriers 
     which, as principal or agent, utilize or are affiliated 
     through common controlling ownership with, companies that 
     utilize air carriers at least 15,000 times annually.
     Conference substitute
       The provision preempts State regulation of prices, routes 
     and services by air carriers and carriers affiliated with a 
     direct air carrier through common controlling ownership in 
     subsection (b) and all other motor carriers in subsection 
     (c). The purpose of this demarkation is (1) to as completely 
     as possible level the playing field between air carriers on 
     the one hand and motor carriers on the other with respect to 
     intrastate economic trucking regulation, and (2) to recognize 
     that air carrier express package delivery companies may 
     differ in corporate form, but operate in the same manner. 
     Thus, this provision includes carriers affiliated with a 
     direct air carrier through common controlling ownership in a 
     new paragraph added to Section 41713(b) of Title 49, United 
     States Code, the former section 105 of the Federal Aviation 
     Act. Motor carriers are deregulated with a new subsection (h) 
     added to section 11501 of Title 49 (the Interstate Commerce 
     Act).
       Subsection (a) enumerates Congress' findings and purposes 
     in enacting Section 601.
       Subsection (b) preempts State regulation of air carriers 
     and carriers affiliated with direct air carriers through 
     common controlling ownership by the addition of a new 
     paragraph (4)(A) to Section 41713(b) of Title 49, United 
     States Code, which is the recodified former Section 105(a) of 
     the Federal Aviation Act. Paragraph (4)(A) preempts State 
     regulation for this entire class of carriers in an identical 
     manner to the preemption provision passed in 1978 contained 
     in the former Section 105.
       The central purpose of this legislation is to extend to all 
     affected carriers, air carriers and carriers affiliated with 
     direct air carriers through common controlling ownership on 
     the one hand and motor carriers on the other, the identical 
     intrastate preemption of prices, routes and services as that 
     originally contained in Section 105(a), 49 U.S.C. App. 
     1305(a)(1), of the Federal Aviation Act.
       However, Congress has recently enacted a recodification of 
     certain subtitles of Title 49. This recodification has 
     changed the language used in the original section 105. For 
     clarity and consistency, we will follow the recodification 
     language in amendments to both the Interstate Commerce Act 
     and Federal Aviation Act. In substituting the word 
     ``related'' for the prior word ``relating'' and the word 
     ``price'' for the word ``rates'' we are intending no 
     substantive change to the previously enacted preemption 
     provision in Section 105 of the Federal Aviation Act and do 
     not intend to impair the applicability of prior judicial case 
     law interpreting these provisions. In particular, the 
     conferees do not intend to alter the broad preemption 
     interpretation adopted by the United States Supreme Court in 
     Morales v. TransWorld Airlines, Inc., 504 U.S.   , 199 L.Ed. 
     157, 112 S.Ct 2031 (1992).
       The conferees understand that in recodifying Title 49, 
     Congress made no substantive change to the Statute. Section 
     1(a) of P.L. 103-272 states ``[c]ertain general and permanent 
     laws * * * are revised, recodified and enacted * * * without 
     substantive change * * *'' Furthermore, page 5 of the Report 
     accompanying P.L. 103-272 states the following:
       ``As in other codification bills enacting titles of the 
     United States Code into positive law, this bill makes no 
     substantive change in the law. It is sometimes feared that 
     mere changes in terminology and style will result in changes 
     in substance or impair the precedent value of earlier 
     judicial decisions and other interpretations. This fear might 
     have some weight if this were the usual kind of amendatory 
     legislation when it can be inferred that a change of language 
     is intended to change substance. In a codification law, 
     however, the courts uphold the contrary presumption: the law 
     is intended to remain substantively unchanged.'' The 
     following authorities affirm this principle: (For a complete 
     list of citations, see Report to Accompany H.R. 1758, P.L. 
     103-272 [Report number 103-180] at 5.)
       Thus, the Conferees have used the term ``price, route and 
     service'' rather than ``rate, route and service'' in both the 
     Aviation subtitle and the Motor Carrier subtitle. The 
     intention in using the identical term ``price'' in both areas 
     is to create uniformity in the preemptive language and to 
     create consistency with the earlier preemption provision. The 
     use of this term is not intended to alter any meaning or 
     affect any judicial interpretation.
       To ensure that no meaning is altered or changed by the 
     recodification, the definition of ``price'' in subtitle VII 
     that was created as part of the recodification of Title 49 
     has been amended to strike that definition's reference to air 
     transportation. The conferees believe that the 
     recodification's creation of a definition of ``price'' 
     created a circumstance which would have defined the word in a 
     manner inconsistent with its intended use and meaning in this 
     section and therefore have made this conforming change. In 
     doing so, the conferees intend no substantive change to 
     existing law, just as the recodification itself is deemed to 
     have made no substantive change in existing law. The 
     substantive meaning and the continuity of case law continue 
     uninterrupted and unaltered from the old section 105 of the 
     Federal Aviation Act, through the recodified version, to the 
     modifications made by this section.
       Paragraph (4)(B) emphasizes that State authority to 
     regulate safety, financial responsibility relating to 
     insurance, transportation of household goods, vehicle size 
     and weight and hazardous materials routing of air carriers 
     and carriers affiliated with a direct air carrier through 
     common controlling ownership is unchanged, since State 
     regulation in those areas is not a price, route or service 
     and thus is unaffected. (This provision is identical to the 
     new subsection 11501(h)(2)(A) discussed below.) This list is 
     not intended to be all inclusive, but merely to specify some 
     of the matters which are not ``prices, rates or services'' 
     and which are therefore not preempted.
       The conferees do not intend the regulatory authority which 
     the States may continue to exercise (partially identified in 
     section 41713(b) and under section 11501(h)) to be used as a 
     guise for continued economic regulation as it relates to 
     prices, routes or services. There has been concern raised 
     that States, which by this provision are prohibited from 
     regulating intrastate prices, routes and services, may 
     instead attempt to regulate intrastate trucking markets 
     through its unaffected authority to regulate matters such as 
     safety, vehicle size and weight, insurance and self-insurance 
     requirements, or hazardous materials routing matters. The 
     conferees do not intend for States to attempt to de facto 
     regulate prices, routes or services of intrastate trucking 
     through the guise of some form of unaffected regulatory 
     authority.
       There has been further concern raised that new sections 
     41713(b)(4)(B) and 11501(h)(2)(A) may be construed as 
     granting States additional authority to regulate in those 
     enumerated areas rather than simply stressing that the 
     preemption provisions do not apply to those areas. The 
     conferees emphasize that nothing in these new subsections 
     contains a new grant of Federal authority to a State to 
     regulate commerce and nothing in these sections amends other 
     Federal statutes that govern the ability of States to impose 
     safety requirements, hazardous materials routing matters, 
     truck size and weight restrictions or financial 
     responsibility requirements relating to insurance or any 
     other unenumerated authority not preempted by these sections.
       For example, if a State exercises authority over the 
     routing of hazardous materials shipments by motor carriers, 
     it must exercise that authority consistent with Federal 
     standards issued on routing pursuant to Federal law governing 
     transportation of hazardous materials (49 U.S.C. Sections 
     5101-5127). The intention of the conferees is solely to 
     identify certain areas that are not preempted by the 
     preemption provision.
       New paragraph (4)(C) of Section 41713(b) states that the 
     preemption provision added to Section 41713(b) does not 
     modify any earlier provisions of the current Section 41713(b) 
     or the former Section 105 of the Federal Aviation Act, 
     including that applicable to the State of Alaska.
       Subsection (c) of Section 601 preempts State regulation of 
     prices, routes and services of motor carriers by adding a new 
     subsection (h) to section 11501 of Title 49, United States 
     Code. The preemption provision, new subsection (h)(1), is 
     identical to the preemption provision deregulating air 
     carriers and carriers affiliated with a direct air carrier 
     through common controlling ownership and is intended to 
     function in the exact same manner with respect to its 
     preemptive effects. The intention is to create a completely 
     level playing field between air carriers and carriers 
     affiliated with a direct air carrier through common 
     controlling ownership on the one hand and motor carriers on 
     the other.
       New subsection (h)(1) contains a parenthetical limitation 
     which states that this section applies to motor carriers 
     other than those carriers affiliated with a direct air 
     carrier through common controlling ownership. This 
     parenthetical is merely intended to ensure that no carrier 
     affiliated with a direct air carrier through common 
     controlling ownership would be covered by both preemption 
     provisions.
       Furthermore, neither preemption provision would preempt the 
     ability of a State to issue a certificate or other 
     documentation (in written or electronic form) demonstrating 
     that the carrier complies with State requirements which are 
     not preempted by these sections and nothing in this amendment 
     is intended to change the application of State tax laws to 
     motor carriers.
       The conferees further clarify that the motor carrier 
     preemption provision does not preempt State regulation of 
     garbage and refuse collectors. The managers have been 
     informed by the Department of Transportation that under ICC 
     case law, garbage and refuse are not considered ``property''. 
     Thus garbage collectors are not considered ``motor carriers 
     of property'' and are thus unaffected by this provision.
       The term motor carrier as used in new subsection (h) of 
     section 11501 has a broad connotation. The term covers the 
     transportation of property by motor carriers of passengers. 
     Thus, when a motor carrier of passengers is transporting 
     property in intrastate commerce, there is no jurisdiction by 
     the State regulatory body over price, route or service for 
     any of the property being transported. The latter is true 
     even if the property is being transported in the same vehicle 
     that moves passengers.
       The term motor carrier covers contract carriers and common 
     carriers of property. Also included in the term is a motor 
     carrier that handles express shipments. The law also applies 
     to private motor carriers, that is, carriers that are 
     pursuing their own business interests or interests of any 
     corporate affiliate.
       New subsection (h)(2) emphasizes that State authority to 
     regulate safety, financial fitness and insurance, 
     transportation of household goods, vehicle size and weight 
     and hazardous materials routing of motor carriers is 
     unchanged since State regulation in those areas is not a 
     price, route or service and thus is unaffected. This 
     subsection is identical to section 41713(b)(4)(B), described 
     above.
       New subsection (h)(3) permits continued State regulation 
     over four enumerated standard transportation practices in an 
     optional manner. This section does not confer any new 
     authority to a State, but merely confirms that these four 
     areas are not preempted. These four areas are uniform cargo 
     liability rules, uniform bills of lading or receipts, uniform 
     cargo credit rules and antitrust immunity for interlining, 
     classifications and mileage guides. This permitted State 
     regulatory authority is limited in two respects. First, a 
     State may only regulate in these four areas in a manner that 
     is no more burdensome than a Federal regulation on the same 
     subject matter. Second, none of these regulations shall apply 
     to any carrier that does not wish to be subject to such 
     regulations.
       The purpose of new subsection (h)(3) is to permit carriers 
     that want to follow State standard transportation practices 
     to be subject to State-wide regulatory schemes in these four 
     areas only. Any carrier which so chooses does not have to 
     elect to be subject to such regulation.
       New subsection (h)(3) also contains a provision that 
     permits carriers affiliated with a direct air carrier through 
     common controlling ownership, which by the explicit terms of 
     new subsection (h)(1) are not subject to the terms of that 
     provision, to elect to be subject to State regulation in any 
     of the four areas enumerated in new subsection (h)(3). This 
     sentence was included to allow a carrier affiliated with a 
     direct air carrier through common controlling ownership to be 
     subject to State regulation in these four areas if it so 
     chose.
       Subsection (d) provides that all subsections of Section 601 
     will take effect on January 1, 1995, except that any 
     regulation of motor carriers operating in the State of Hawaii 
     preempted by subsection (c) of Section 601 shall not be 
     affected for three years from the date of enactment. The 
     conferees directed the difference in the effective date for 
     the State of Hawaii at the request of the State. The State 
     had requested the conferees to totally except Hawaii from the 
     preemption provision based on Hawaii's unique geographic 
     circumstance, as the only State that is non-contiguous to the 
     mainland since the State is totally surrounded by water. 
     Therefore, all regulation of motor carrier transportation in 
     the State of Hawaii is regulated by the State of Hawaii. 
     Though the conferees were not willing to except Hawaii from 
     the preemption provisions, they were convinced that due to 
     these special circumstances the State should have additional 
     time before preemption goes into effect.
     Background and statement of purpose
       Currently, 41 jurisdictions regulate, in varying degrees, 
     intrastate prices, routes and services of motor carriers. The 
     jurisdictions which do not regulate are: Alaska, Arizona, 
     Delaware, District of Columbia, Florida, Maine, Maryland, New 
     Jersey, Vermont and Wisconsin.
       Typical forms of regulation include entry controls, tariff 
     filing and price regulation, and types of commodities 
     carried. Not all 41 States regulate each of these aspects nor 
     do they all regulate them in the same manner or to the same 
     degree.
       Entry controls at the State level vary from liberal to 
     strict. Strict entry controls often serve to protect 
     carriers, while restricting new applicants from directly 
     competing for any given route and type of trucking business. 
     About 26 States strictly regulate trucking prices. Such 
     regulation is usually designed to ensure not that prices are 
     kept low, but that they are kept high enough to cover all 
     costs and are not so low as to be ``predatory''. Price 
     regulations also involves filing of tariffs and long 
     intervals for approval to change prices. A company which 
     wants to change its prices often must go through a costly and 
     lengthy hearing proceeding in each State in which it 
     operates.
       The need for section 601 has arisen from this patchwork of 
     regulation and in a June 25, 1991 9th Circuit Court of 
     Appeals decision (Federal Express Corporation v. California 
     Public Utilities Commission, 936 F.2d 1075 (9th Cir., 1991), 
     cert. denied, 112 S.Ct. 2956 (1992)) in which Federal Express 
     challenged California's authority to regulate the company's 
     motor carrier operations. The court found that intrastate 
     economic regulations for motor carriers did not apply to 
     Federal Express because it was preempted by the Airline 
     Deregulation Act of 1978, by virtue of the fact that it is an 
     air carrier. Although several of its competitors conduct 
     similar operations, they are not organized as air carriers. 
     For example, United Parcel Service remained regulated, 
     because it is organized as a ``motor carrier'', putting it at 
     a competitive disadvantage in a number of States.
       In light of the inequity created by the 9th Circuit Court 
     Decision, California enacted legislation in October of 1993, 
     which extended the exemption enjoyed by Federal Express as a 
     result of its court victory to its competitors that are motor 
     carriers affiliated with direct air carriers. The California 
     legislation denied this exemption, however, to those using a 
     large proportion of owner-operators instead of company 
     employees, thereby denying the exemption to Roadway Package 
     System, even though the Roadway holding company includes an 
     air operation. Likewise, the Texas Attorney General has 
     applied the 9th Circuit decision to Texas and broadened it to 
     include other intermodal air ground carriers with similar 
     operations. The Texas Railroad Commission has accepted the 
     Attorney General decision. However, competitors whose 
     operations are not integrated are still regulated. Likewise, 
     Kentucky enacted legislation in May 1994 exempting from its 
     regulation the carriage of packages weighing less than 150 
     pounds, by motor carriers affiliated with either direct or 
     indirect air carriers.
       Despite the movement toward deregulation by some individual 
     states, the conferees believe preemption legislation is in 
     the public interest as well as necessary to facilitate 
     interstate commerce. State economic regulation of motor 
     carrier operations causes significant inefficiencies, 
     increased costs, reduction of competition, inhibition of 
     innovation and technology and curtails the expansion of 
     markets. According to Department of Transportation estimates, 
     preemption of State economic regulation could eventually 
     yield $3-8 billion per year in savings. Other estimates put 
     the savings as high as $5-12 billion. The sheer diversity of 
     these regulatory schemes is a huge problem for national and 
     regional carriers attempting to conduct a standard way of 
     doing business. In hearings held on this issue, numerous 
     examples have been cited in which rates for shipments within 
     a state exceed rates for comparable distances across state 
     lines. In the small package express business, companies 
     frequently ship goods across state lines and back into the 
     state of origin to avoid the higher rates for purely 
     intrastate shipments. Lifting of these antiquated controls 
     will permit our transportation companies to freely compete 
     more efficiently and provide quality service to their 
     customers. Service options will be dictated by the 
     marketplace; and not by an artificial regulatory structure.
       The provision is supported by the Clinton Administration. 
     Its statement of administration policy during floor 
     consideration of S. 1491 reads: ``The Administration 
     particularly supports the Amendment's provision which 
     addresses the problem of inconsistent regulation of 
     intermodal all-cargo air carriers. Enactment of this 
     provision would be an important step in resolving conflicting 
     laws that interfere with efficient intermodal cargo 
     movements.''
       After years of official policy against intrastate motor 
     carrier deregulation, the American Trucking Associations 
     issued a position on June 24, 1994 which stated that ``ATA 
     will no longer oppose Federal preemption of state regulation 
     of motor carrier rates and entry based on economic factors,'' 
     with some conditions that would allow regulatory protection 
     to continue for non-economic factors, such as liability 
     rules, antitrust immunity to publish documents, insurance, 
     safety, leasing and cargo credit rules. The conferees have 
     attempted to address these conditions in Section 11501 of 
     title 49 as amended by this provision.
       It is important to note that the Senate provision created 
     some ambiguity as to which carriers would be able to avail 
     themselves of the preemption. In the version agreed to by the 
     conferees, it is clear that all air carriers and carriers 
     affiliated with a direct air carrier through common 
     controlling ownership, motor carriers and motor private 
     carriers involved in the transportation of property are 
     covered by the preemption. The conferees believed it was 
     patently unfair to create a level playing field for most of 
     the industry, while leaving an unfortunate few still bound by 
     economic regulatory controls.
       The conferees are well aware that in recent years there has 
     been considerable litigation with respect to the status of 
     certain carriers, specifically as to whether they are air 
     carriers or are motor carriers, and whether they are covered 
     by the Railway Labor Act or the National Labor Relations Act. 
     The purpose of this section is to preempt economic regulation 
     by the States, not to alter, determine or affect in any way 
     whether any carrier is or should be considered either an air 
     carrier or a motor carrier for any purpose other than this 
     section, whether any carrier is or should be covered by one 
     labor statute or another, or the status of any collective 
     bargaining agreement.
       During the hearing on preemption of State regulation held 
     by the House Committee on Public Works and Transportation on 
     July 20, 1994, concerns were raised regarding the devaluation 
     of operating rights and its effect on motor carriers, as a 
     result of preemption of State authority to regulate the 
     price, route, or service for intrastate transportation. Some 
     motor carriers have purchased or paid to acquire the 
     authority to operate trucks in many States. These operating 
     rights for many motor carriers, especially small carriers, 
     are an important part of their net business assets. The 
     conferees recognize that this will eliminate the asset value 
     of the operating authority of those affected motor carriers.
     From the Committee on Public Works and Transportation, for 
     consideration of titles I and II of the House bill, and the 
     Senate amendment (except secs. 121, 206, 304, 415, 418 and 
     title VI), and modifications committed to conference:
     Norman Y. Mineta,
     Nick Rahall,
     James L. Oberstar,
     Robert A. Borski,
     Bob Clement,
     Bud Shuster,
     Bill Clinger,
     Thomas E. Petri,
     From the Committee on Banking, Finance and Urban Affairs, for 
     consideration of title VI of the Senate amendment, and 
     modifications committed to conference:
     Henry Gonzalez,
     Steve Neal,
     From the Committee on Education and labor, for consideration 
     of sec. 418 of the Senate amendment, and modifications 
     committed to conference:
     William D. Ford,
     Major R. Owens,
     Howard ``Buck'' McKeon,
     From the Committee on Education and labor, for consideration 
     of sec. 208 of the House bill, and modifications committed to 
     conference:
     William D. Ford,
     Bill Clay,
     Pat Williams,
     From the Committee on Foreign Affairs, for consideration of 
     sec. 415 of the Senate amendment, and modifications committed 
     to conference:
     Lee H. Hamilton,
     Tom Lantos,
     Gary L. Ackerman,
     Howard L. Berman,
     Eni Faleomavaega,
     Benjamin A. Gilman,
     Bill Goodling,
     Jim Leach,
     From the Committee on Science, Space, and Technology, for 
     consideration of title III of the House bill, and secs. 206 
     and 304 of the Senate amendment, and modifications committed 
     to conference:
     George E. Brown, Jr.,
     Tim Valentine,
     Dan Glickman,
     Pete Geren,
     Jane Harman,
     Robert S. Walker,
     Tom Lewis,
     Constance Morella,
     From the Committee on Ways and Means, for consideration of 
     title IV of the House bill, and secs. 121 and 122 of the 
     Senate amendment, and modifications committed to conference:
     Sam Gibbons,
     Dan Rostenkowski,
     J. J. Pickle,
     Pete Stark,
     Bill Archer,
     Phil Crane,
                                Managers on the Part of the House.

     Ernest Hollings,
     Wendell Ford,
     James Exon,
     John C. Danforth,
     Larry Pressler,
     Managers on the Part of the Senate.

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