[Congressional Record Volume 142, Number 128 (Tuesday, September 17, 1996)]
[Senate]
[Pages S10691-S10708]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            THE FEDERAL AVIATION REAUTHORIZATION ACT OF 1996

                                 ______
                                 

                       HEFLIN AMENDMENT NO. 5358

  (Ordered to lie on the table.)
  Mr. HEFLIN submitted an amendment intended to be proposed by him to 
the bill (S. 1994) to amend title 49, United States Code, to 
reauthorize programs of the Federal Aviation Administration, and for 
other purposes; as follows:

       At the appropriate place, insert the following:

     SEC. 409. GADSDEN AIR DEPOT, ALABAMA.

       (a) Authority To Grant Waivers.--Notwithstanding section 16 
     of the Federal Airport Act (as in effect on May 4, 1949), 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 conveyances dated May 4, 1949, under 
     which the United States conveyed certain property to the city 
     of Gadsden, Alabama, for airport purposes.
       (b) Conditions.--Any waiver granted under subsection (a) 
     shall be subject to the following conditions:
       (1) The city of Gadsden, Alabama, 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) a public airport, or (B) lands (including 
     any improvements thereto) which

[[Page S10692]]

     produce revenues that are used for airport development 
     purposes.

     Conform the table of contents of the bill accordingly.
                                 ______
                                 

                        REID AMENDMENT NO. 5359

  (Ordered to lie on the table.)
  Mr. REID submitted an amendment intended to be proposed by him to the 
bill, S. 1994, supra; as follows:

       At the appropriate place, insert the following new section:

     SEC.   . SENSE OF THE SENATE.

       (a) Findings.--The Senate finds that--
       (1) there has been an intensification in the oppression and 
     disregard for human life among nations that are willing to 
     export terrorism:
       (2) there has been an increase in attempts by criminal 
     terrorists to murder airline passengers through the 
     destruction of civilian airliners and the deliberate fear and 
     death inflicted through bombings of buildings and the 
     kidnapping of tourists and Americans residing abroad; and
       (3) information widely available demonstrates that a 
     significant portion of international terrorist activity is 
     state-sponsored, -organized, -condoned, or -directed.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that if evidence establishes beyond a clear and reasonable 
     doubt that any act of hostility towards any United States 
     citizen was an act of international terrorism sponsored, 
     organized, condoned, or directed by any nation, a state of 
     war should be considered to exist or to have existed between 
     the United States of America and that nation, beginning as of 
     the moment that the act of aggression occurs.
                                 ______
                                 

                PRESSLER (AND OTHERS) AMENDMENT NO. 5360

  Mr. McCAIN (for Mr. Pressler, for himself, Mr. McCain, Mr. Hollings, 
Mr. Ford, and Mr. Stevens) proposed an amendment to the bill, S. 1994, 
supra; as follows:

       Strike out all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Federal 
     Aviation Reauthorization Act of 1996''.
       (b) Table of Contents.

Sec. 1. Short title; Table of contents.
Sec. 2. Amendments to title 49, United States Code.

                TITLE I--REAUTHORIZATION OF FAA PROGRAMS

Sec. 101. Federal Aviation Administration operations.
Sec. 102. Air navigation facilities.
Sec. 103. Research and development.
Sec. 104. Airport improvement program.
Sec. 105. Interaccount flexibility.

          TITLE II--AIRPORT IMPROVEMENT PROGRAM MODIFICATIONS

Sec. 201. Pavement maintenance program.
Sec. 202. Maximum percentages of amount made available for grants to 
              certain primary airports.
Sec. 203. Discretionary fund.
Sec. 204. Designating current and former military airports.
Sec. 205. State block grant program.
Sec. 206. Access to airports by intercity buses.

                 TITLE III--AIRPORT SAFETY AND SECURITY

Sec. 301. Report including proposed legislation on funding for airport 
              security.
Sec. 302. Family advocacy.
Sec. 303. Accident and safety data classification; report on effects of 
              publication and automated surveillance targeting systems.
Sec. 304. Weapons and explosive detection study.
Sec. 305. Requirement for criminal history records checks.
Sec. 306. Interim deployment of commercially available explosive 
              detection equipment.
Sec. 307. Audit of performance of background checks for certain 
              personnel.
Sec. 308. Sense of the Senate on passenger profiling.
Sec. 309. Authority to use certain funds for airport security programs 
              and activities.
Sec. 310. Development of aviation security liaison agreement.
Sec. 311. Regular joint threat assessments.
Sec. 312. Baggage match report.
Sec. 313. Enhanced security programs.
Sec. 314. Report on air cargo.

                   TITLE IV--MISCELLANEOUS POVISIONS

Sec. 401. Acquisition of housing units.
Sec. 402. Protection of voluntarily submitted information.
Sec. 403. Application of FAA regulations.
Sec. 404. Sense of the Senate regarding the funding of the Federal 
              Aviation Administration.
Sec. 405. Authorization for State-specific safety measures.
Sec. 406. Sense of the Senate regarding the air ambulance exemption 
              from certain Federal excise taxes.
Sec. 407. FAA safety mission.
Sec. 408. Carriage of candidates in State and local elections.
Sec. 409. Train whistle requirements.
Sec. 410. Limitation on authority of States to regulate gambling 
              devices on vessels.

            TITLE V--COMMERCIAL SPACE LAUNCH ACT AMENDMENTS

Sec. 501. Commercial space launch amendments.

  TITLE VI--AIR TRAFFIC MANAGEMENT SYSTEM PERFORMANCE IMPROVEMENT ACT

Sec. 601. Short title.
Sec. 602. Definitions.
Sec. 603. Effective date.
                     Subtitle A--General Provisions

Sec. 621. Findings.
Sec. 622. Purposes.
Sec. 623. Regulation of civilian air transportation and related 
              services by the Federal Aviation Administration and 
              Department of Transportation.
Sec. 624. Regulations.
Sec. 625. Personnel and services.
Sec. 626. Contracts.
Sec. 627. Facilities.
Sec. 628. Property.
Sec. 629. Transfers of funds from other Federal agencies.
Sec. 630. Management Advisory Council.
Sec. 631. Aircraft engine standards.
Sec. 632. Rural air fare study.
   Subtitle B--Federal Aviation Administration Streamlining Programs

Sec. 651. Review of acquisition management system.
Sec. 652. Air traffic control modernization reviews.
Sec. 653. Federal Aviation Administration personnel management system.
Sec. 654. Conforming amendment.
  Subtitle C--System To Fund Certain Federal Aviation Administration 
                               Functions

Sec. 671. Findings.
Sec. 672. Purposes.
Sec. 673. User fees for various Federal Aviation Administration 
              services.
Sec. 674. Independent assessment and task force to review existing and 
              innovative funding mechanisms.
Sec. 675. Procedure for consideration of certain funding proposals.
Sec. 676. Administrative provisions.
Sec. 677. Advance appropriations for Airport and Airway Trust Fund 
              activities.
Sec. 678. Rural Air Service Survival Act.

                        TITLE VII--PILOT RECORDS

Sec. 701. Short title.
Sec. 702. Employment investigations of pilot applicants.
Sec. 703. Study of minimum standards for pilot qualifications.

                TITLE VIII--ABOLITION OF BOARD OF REVIEW

Sec. 801. Abolition of Board of Review and related authority.
Sec. 802. Sense of the Senate.
Sec. 803. Conforming amendments in other law.
Sec. 804. Definitions.
Sec. 805. Increase in number of Presidentially appointed members of 
              Board.
Sec. 806. Reconstituted Board to function without interruption.
Sec. 807. Operational slots at National Airport.
Sec. 808. Airports authority support of Board.

                  TITLE IX--AIRPORT REVENUE PROTECTION

Sec. 901. Short title.
Sec. 902. Findings; purpose.
Sec. 903. Definitions.
Sec. 904. Restriction on use of airport revenues.
Sec. 905. Regulations; audits and accountability.
Sec. 906. Conforming amendments to the Internal Revenue Code of 1986.

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

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

                TITLE I--REAUTHORIZATION OF FAA PROGRAMS

     SEC. 101. FEDERAL AVIATION ADMINISTRATION OPERATIONS.

       (a) Authorization of Appropriations From General Fund.--
     Section 106(k) is amended--
       (1) by striking ``and'' after ``1995,''; and
       (2) by inserting before the period at the end the 
     following: ``, and $5,000,000,000 for fiscal year 1997.''.
       (b) Authorization of Appropriations From Trust Fund.--
     Section 48104(b) is amended--
       (1) in the subsection heading by striking ``for Fiscal 
     Years  1993''; and
       (2) by striking the phrase ``for fiscal year 1993''.
       (c) Clerical Amendment.--Section 48108 is amended by 
     striking subsection (c).

     SEC. 102. AIR NAVIGATION FACILITIES.

       Section 48101(a) is amended by adding at the end the 
     following:
       ``(5) For the fiscal years ending September 30, 1991-1997, 
     $17,929,000,000.''.

     SEC. 103. RESEARCH AND DEVELOPMENT.

       Section 48102(a) is amended by striking ``title:'' and all 
     that follows through the end of the subsection, and inserting 
     the following: ``title, $206,000,000 for fiscal year 1997.''.

[[Page S10693]]

     SEC. 104. AIRPORT IMPROVEMENT PROGRAM.

       (a) Authorization of Appropriations.--Section 48103 is 
     amended--
       (1) by striking ``and $21,958,500,000'' and inserting 
     ``$19,200,500,000''; and
       (2) by inserting before the period at the end the 
     following: ``, $21,480,500,000 for fiscal years ending before 
     October 1, 1997.''
       (b) Obligational Authority.--Section 47104(c) is amended by 
     striking ``1996'' and inserting ``1997''.

     SEC. 105. INTERACCOUNT FLEXIBILITY.

       Section 106 is amended by adding at the end the following 
     new subsection:
       ``(l) Interaccount Flexibility.--
       ``(1) Except as provided in paragraph (2), the 
     Administrator may transfer budget authority derived from 
     trust funds among appropriations authorized by subsection (k) 
     and sections 48101 and 48102, if the aggregate estimated 
     outlays in such accounts in the fiscal year in which the 
     transfers are made will not be increased as a result of such 
     transfer.
       ``(2) The transfer of budget authority under paragraph (1) 
     may be made only to the extent that outlays do not exceed the 
     aggregate estimated outlays.
       ``(3) A transfer of budget authority under paragraph (1) 
     may not result in a net decrease of more than 5 percent, or a 
     net increase of more than 10 percent, in the budget authority 
     available under any appropriation involved in that transfer.
       ``(4) Any action taken pursuant to this section shall be 
     treated as a reprogramming of funds that is subject to review 
     by the appropriate committees of the Congress.
       ``(5) The Administrator may transfer budget authority 
     pursuant to this section only after--
       ``(A) submitting a written explanation of the proposed 
     transfer to the Committees on Transportation and 
     Infrastructure and Appropriations of the House of 
     Representatives and the Committees on Commerce, Science, and 
     Transportation and Appropriations of the Senate; and
       ``(B) 30 days have passed after the explanation is 
     submitted and none of the committees notifies the 
     Administrator in writing that it objects to the proposed 
     transfer within the 30 day period.''.

          TITLE II--AIRPORT IMPROVEMENT PROGRAM MODIFICATIONS

     SEC. 201. PAVEMENT MAINTENANCE PROGRAM.

       (a) Pavement Maintenance.--Chapter 471 is amended by adding 
     the following section at the end of subchapter I:

     ``Sec. 47132. Pavement maintenance

       ``(a) In General.--The Administrator of the Federal 
     Aviation Administration shall issue guidelines to carry out a 
     pavement maintenance pilot project to preserve and extend the 
     useful life of runways, taxiways, and aprons at airports for 
     which apportionments are made under section 47114(d). The 
     regulations shall provide that the Administrator may 
     designate not more than 10 projects. The regulations shall 
     provide criteria for the Administrator to use in choosing 
     the projects. At least 2 such projects must be in States 
     without a primary airport that had 0.25 percent or more of 
     the total boardings in the United States in the preceding 
     calendar year. In designating a project, the Administrator 
     shall take into consideration geographical, 
     climatological, and soil diversity.
       ``(b) Effective Date.--This section shall be effective 
     beginning on the date of enactment of the Federal Aviation 
     Reauthorization Act of 1996 and ending on September 30, 
     1999.''.
       (b) Compliance With Federal Mandates.--
       (1) Use of aip grants.--Section 47102(3) is amended--
       (A) in subparagraph (E) by inserting ``or under section 
     40117'' before the period at the end; and
       (B) in subparagraph (F) by striking ``paid for by a grant 
     under this subchapter and''.
       (2) Use of passenger facility charges.--Section 40117(a)(3) 
     is amended--
       (A) by inserting ``and'' at the end of subparagraph (D);
       (B) by striking ``; and'' at the end of subparagraph (E) 
     and inserting a period; and
       (C) by striking subparagraph (F).
       (c) Conforming Amendment.--The chapter analysis for 
     subchapter I of chapter 471 is amended by inserting after the 
     item relating to section 47131 the following new item:

``47132. Pavement maintenance.''.

     SEC. 202. MAXIMUM PERCENTAGES OF AMOUNT MADE AVAILABLE FOR 
                   GRANTS TO CERTAIN PRIMARY AIRPORTS.

       Section 47114 is amended by adding at the end thereof the 
     following:
       ``(g) Sliding Scale.--
       ``(1) Notwithstanding any other provision of this title, of 
     the amount newly made available under section 48103 of this 
     title for fiscal year 1997 to make grants, not more than the 
     percentage of such amount newly made available that is 
     specified in paragraph (2) shall be distributed in total in 
     such fiscal year for grants described in paragraph (3).
       ``(2) If the amount newly made available is--
       ``(A) not more than $1,150,000,000, then the percentage is 
     47.0;
       ``(B) more than $1,150,000,000 but not more than 
     $1,250,000,000, then the percentage is 46.0;
       ``(C) more than $1,250,000,000 but not more than 
     $1,350,000,000, then the percentage is 45.4;
       ``(D) more than $1,350,000,000 but not more than 
     $1,450,000,000, then the percentage is 44.8; or
       ``(E) more than $1,450,000,000 but not more than 
     $1,550,000,000, then the percentage is 44.3.
       ``(3) This subsection applies to the aggregate amount of 
     grants in a fiscal year for projects at those primary 
     airports that each have not less than 0.25 per centum of the 
     total passenger boardings in the United States in the 
     preceding calendar year.''.

     SEC. 203. DISCRETIONARY FUND.

       Section 47115 is amended--
       (1) by striking ``and'' at the end of subsection (d)(2); 
     and inserting a comma and the following: ``, including, in 
     the case of a project at a reliever airport, the number of 
     operations projected to be diverted from a primary airport to 
     that reliever airport as a result of the project, as well as 
     the cost savings projected to be realized by users of the 
     local airport system; and''.
       (2) by redesignating paragraph (3) of subsection (d) as 
     paragraph (4), and by inserting after paragraph (2) of that 
     subsection the following:
       ``(3) the airport improvement priorities of the States, and 
     regional offices of the Administration, to the extent such 
     priorities are not in conflict with paragraphs (1) and (2) of 
     this subsection; and'';
       (3) by redesignating the second subsection (f) as 
     subsection (g); and
       (4) by adding at the end the following:
       ``(h) Priority for Letters of Intent.--In making grants in 
     a fiscal year with funds made available under this section, 
     the Secretary shall fulfill intentions to obligate under 
     section 47110(e).''

     SEC. 204. DESIGNATING CURRENT AND FORMER MILITARY AIRPORTS.

       (a) General Requirements.--Section 47118(a) is amended to 
     read as follows:
       ``(a) General Requirements.--The Secretary of 
     Transportation shall designate current or former military 
     airports for which grants may be made under section 
     47117(e)(1)(E) of this title. The maximum number of airports 
     bearing such designation at any time is 12. The Secretary may 
     only so designate an airport (other than an airport so 
     designated before August 24, 1994) if--
       ``(1) the airport is a former military installation closed 
     or realigned under--
       ``(A) section 2687 of title 10;
       ``(B) section 201 of the Defense Authorization Amendments 
     and Base Closure and Realignment Act (10 U.S.C. 2687 note); 
     or
       ``(C) section 2905 of the Defense Base Closure and 
     Realignment Act of 1990 (10 U.S.C. 2687 note); or
       ``(2) the Secretary finds that such grants would--
       ``(A) reduce delays at an airport with more than 20,000 
     hours of annual delays in commercial passenger aircraft 
     takeoffs and landings; or
       ``(B) enhance airport and air traffic control system 
     capacity in a metropolitan area or reduce current and 
     projected flight delays.''.
       (b) Additional Designation Periods.--Section 47118(d) is 
     amended by striking ``designation.'' and inserting 
     ``designation, and for subsequent 5-fiscal-year periods if 
     the Secretary determine that the airport satisfies the 
     designation criteria under subsection (a) at the beginning of 
     each such subsequent 5-fiscal-year period.''.
       (c) Parking Lots, Fuel Farms, and Utilities.--Subsection 
     (f) of section 47118 is amended by striking ``the fiscal 
     years ending September 30, 1993-1996,'' and inserting ``for 
     fiscal years beginning after September 30, 1992,''.
       (d) One-Year Extension.--Section 47117(e)(1)(E) is amended 
     by striking ``and 1996,'' and inserting ``1996, and 1997,''.

     SEC. 205. STATE BLOCK GRANT PROGRAM.

       (a) Participating States.--Section 47128(b) is amended--
       (1) by striking paragraph (2);
       (2) by redesignating subparagraphs (A) through (E) of 
     paragraph (1) as paragraphs (1) through (5), respectively; 
     and
       (3) by striking ``(1) A State'' and inserting ``A State''.
       (b) Use of State Priority System.--Section 47128(c) is 
     amended by adding at the end the following: ``In carrying out 
     this subsection, the Secretary shall permit a State to use 
     the priority system of the State if such system is not 
     inconsistent with the national priority system.''.
       (c) Change of Expiration Date.--Section 47128(d) is amended 
     by striking ``1996'' and inserting ``1997''.

     SEC. 206. ACCESS TO AIRPORTS BY INTERCITY BUSES.

       Section 47107(a) is amended--
       (1) by striking ``and'' at the end of paragraph (18);
       (2) by striking the period at the end of paragraph (19) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(20) the airport owner or operator will permit, to the 
     maximum extent practicable, intercity buses or other modes of 
     transportation to have access to the airport, but the sponsor 
     does not have any obligation under this paragraph, or because 
     of it, to fund special facilities for intercity bus service 
     or for other modes of transportation.''.

                 TITLE III--AIRPORT SAFETY AND SECURITY

     SEC. 301. REPORT INCLUDING PROPOSED LEGISLATION ON FUNDING 
                   FOR AIRPORT SECURITY.

       (a) In General.--Not later than 30 days after the date of 
     enactment of this Act, the Administrator shall conduct a 
     study and

[[Page S10694]]

     submit to the Congress a report on whether, and if so, how to 
     transfer certain responsibilities of air carriers under 
     Federal law for security activities conducted onsite at 
     airports to airport operators who are subject to section 
     44903 of title 49, United States Code, or to the Federal 
     Government or providing for shared responsibilities between 
     air carriers and airport operators or the Federal Government.
       (b) Contents of Report.--The report submitted under this 
     section shall--
       (1) examine potential sources of Federal and non-Federal 
     revenue that may be used to fund security activities 
     including but not limited to providing grants from funds 
     received as fees collected under a fee system established 
     under subpart C of this title and the amendments made by that 
     subpart; and
       (2) provide legislative proposals, if necessary, for 
     accomplishing the transfer of responsibilities referred to in 
     subsection (a).
       (c) Certification of Screening Companies.--The Federal 
     Aviation Administration is directed to certify companies 
     providing security screening and to improve the training and 
     testing of security screeners through development of uniform 
     performance standards for providing security screening 
     services.

     SEC. 302. FAMILY ADVOCACY.

       (a) In General.--Subchapter III of chapter 11 of title 49, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 1136. Family advocacy

       ``(a) In General.--The National Transportation Safety Board 
     shall establish a program consistent with its existing 
     authority to provide family advocacy services for aircraft 
     accidents described in subsection (b)(1) and serve as the 
     lead agency in coordinating the provision of the services 
     described in subsection (b). The National Transportation 
     Safety Board shall, as necessary, in carrying out the 
     program, cooperate with the Secretary of Transportation, the 
     Administrator of the Federal Aviation Administration, and 
     such other public and private organizations as may be 
     appropriate.
       ``(b) Family Advocacy Services.--
       ``(1) In general.--The National Transportation Safety Board 
     shall work with an air carrier involved in an accident in air 
     commerce and facilitate the procurement by that air carrier 
     of the services of family advocates who are not otherwise 
     employed by an air carrier and who are not employed by the 
     Federal Aviation Administration to, in the event of an 
     accident in air commerce--
       ``(A) apply standards of conduct specified by the National 
     Transportation Safety Board;
       ``(B) to the extent practicable, direct and facilitate all 
     communication among air carriers, surviving passengers, 
     families of passengers, news reporters, the Federal 
     Government, and the governments of States and political 
     subdivisions thereof;
       ``(C) coordinate with a representative of the air carrier 
     to jointly direct the notification of the next of kin of 
     victims of the accident; and
       ``(D) carry out such other related duties as the National 
     Transportation Safety Board determines to be appropriate.
       ``(2) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       ``(A) Air carrier.--The term `air carrier' has the meaning 
     provided that term in section 40102(a)(2).
       ``(B) Family advocate.--The term `family advocate' shall 
     have the meaning provided that term by the National 
     Transportation Safety Board by regulation.''.
       (b) Guidelines.--Not later than 90 days after the date of 
     enactment of this Act, the National Transportation Safety 
     Board shall issue guidelines for the implementation of the 
     program established by the Board under section 1136 of title 
     49, United States Code, as added by subsection (a).
       (c) Conforming Amendment.--The chapter analysis for 
     subchapter III of chapter 11 of title 49, United States Code, 
     is amended by adding at the end the following:

``1136. Family advocacy.''.

     SEC. 303. ACCIDENT AND SAFETY DATA CLASSIFICATION; REPORT ON 
                   EFFECTS OF PUBLICATION AND AUTOMATED 
                   SURVEILLANCE TARGETING SYSTEMS.

       (a) Accident and Safety Data Classification.--
       (1) In general.--Subchapter II of chapter 11 of title 49, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 1119. Accident and safety data classification and 
       publication

       ``(a) In General.--Not later then 90 days after the date of 
     enactment of this section, the National Transportation Safety 
     Board (hereafter in this section referred to as the `Board') 
     shall, in consultation and coordination with the 
     Administrator of the Federal Aviation Administration 
     (hereafter in this section referred to as the 
     `Administrator'), develop a system for classifying air 
     carrier accident and pertinent safety data maintained by the 
     Board.
       ``(b) Requirements for Classification System.--
       ``(1) In general.--The system developed under this section 
     shall provide for the classification of accident and safety 
     data in a manner that, in comparison to the system in effect 
     on the date of enactment of this section, provides for--
       ``(A) safety-related categories that provide clearer 
     descriptions of the passenger safety effects associated with 
     air transportation;
       ``(B) clearer descriptions of passenger safety concerns 
     associated with air transportation accidents; and
       ``(C) a report to the Congress by the Board that describes 
     methods for accurately informing the public of the concerns 
     referred to in subparagraph (B) through regular reporting of 
     accident and safety data obtained through the system 
     developed under this section.
       ``(2) Public comment.--Upon developing a system of 
     classification under paragraph (1), the Board shall provide 
     adequate opportunity for public review and comment.
       ``(3) Final classification.--After providing for public 
     review and comment, and after consulting with the 
     Administrator, the Board shall issue final classifications. 
     The Board shall ensure that air travel accident and safety 
     data covered under this section is classified in accordance 
     with the final classifications issued under this section for 
     data for calendar year 1997, and for each subsequent calendar 
     year.
       ``(4) Report on the effects associated with publication of 
     air transportation accident and safety information.--
       ``(A) In general.--Not later than the date specified in 
     subsection (a), the Board shall prepare and submit to the 
     Congress a report on the effects and potential of the 
     publication of air transportation accident safety 
     information.
       ``(B) Content and form of report.--The report prepared 
     under this paragraph shall include recommendations concerning 
     the adoption or revision of requirements for reporting 
     accident and safety data.
       ``(5) Recommendations of the administrator.--The 
     Administrator may, from time to time, request the Board to 
     consider revisions (including additions to the classification 
     system developed under this section). The Board shall respond 
     to any request made by the Administrator under this section 
     not later than 90 days after receiving that request.
       ``(c) Presentation of Final Classifications to the 
     International Civil Aviation Organization.--Not later than 90 
     days after final classifications are issued under subsection 
     (b)(3), the Administrator shall--
       ``(1) present to the International Civil Aviation 
     Organization the final classification system developed under 
     this section; and
       ``(2) seek the adoption of that system by the International 
     Civil Aviation Organization.''.
       (2) Conforming amendment.--The chapter analysis for 
     subchapter II of chapter 11 of title 49, United States Code, 
     is amended by adding at the end the following new item:

``1119. Accident and safety data classification and publication.''.

       (b) Automated Surveillance Targeting Systems.--Section 
     44713 is amended by adding at the end the following new 
     subsection:
       ``(e) Automated Surveillance Targeting Systems.--
       ``(1) In general.--The Administrator shall give high 
     priority to developing and deploying a fully enhanced safety 
     performance analysis system that includes automated 
     surveillance to assist the Administrator in prioritizing and 
     targeting surveillance and inspection activities of the 
     Federal Aviation Administration.
       ``(2) Deadlines for deployment.--
       ``(A) Initial phase.--The initial phase of the operational 
     deployment of the system developed under this subsection 
     shall begin not later than December 31, 1997.
       ``(B) Final phase.--The final phase of field deployment of 
     the system developed under this subsection shall begin not 
     later than December 31, 1999. By that date, all principal 
     operations and maintenance inspectors of the Administration, 
     and appropriate supervisors and analysts of the 
     Administration shall have been provided access to the 
     necessary information and resources to carry out the system.
       ``(3) Integration of information.--In developing the system 
     under this section, the Administration shall consider the 
     near-term integration of accident and incident data into the 
     safety performance analysis system under this subsection.''.

     SEC. 304. WEAPONS AND EXPLOSIVE DETECTION STUDY.

       (a) In General.--The Administrator of the Federal Aviation 
     Administration (hereafter in this section referred to as the 
     ``Administrator'') shall enter into an arrangement with the 
     Director of the National Academy of Sciences (or if the 
     National Academy of Sciences is not available, the head of 
     another equivalent entity) to conduct a study in accordance 
     to this section.
       (b) Panel of Experts.--
       (1) In general.--In carrying out a study under this 
     section, the Director of the National Academy of Sciences (or 
     the head of another equivalent entity) shall establish a 
     panel (hereinafter in this section as the ``panel'').
       (2) Expertise.--Each member of the panel established under 
     this subsection shall have expertise in weapons and explosive 
     detection technology, security, air carrier and airport 
     operations, or another appropriate area. The Director of the 
     National Academy of Sciences (or the head of another 
     equivalent entity) shall ensure that the panel has an 
     appropriate number of representatives of the areas specified 
     in the preceding sentence.
       (c) Study.--The panel established under subsection (b), in 
     consultation with the National Science and Technology 
     Council, representatives of appropriate Federal agencies,

[[Page S10695]]

     and appropriate members of the private sector, shall--
       (1) assess the weapons and explosive detection technologies 
     that are available at the time of the study that are capable 
     of being effectively deployed in commercial aviation;
       (2) determine how the technologies referred to in paragraph 
     (1) may more effectively be used for promotion and 
     improvement of security at airport and aviation facilities 
     and other secured areas; and
       (3) on the basis of the assessments and determinations made 
     under paragraphs (1) and (2), identify the most promising 
     technologies for the improvement of the efficiency and cost-
     effectiveness of weapons and explosive detection.
       (d) Cooperation.--The National Science and Technology 
     Council shall take such action as may be necessary to 
     facilitate, to the maximum extent practicable and upon 
     request of the Director of the National Academy of Sciences 
     (or the head of another equivalent entity), the cooperation 
     of representatives of appropriate Federal agencies, as 
     provided for in subsection (c), in providing the panel, for 
     the study under this section--
       (1) expertise; and
       (2) to the extent allowable by law, resources and 
     facilities.
       (e) Reports.--The Director of the National Academy of 
     Sciences (or the head of another equivalent entity) shall, 
     pursuant to an arrangement entered into under subsection (a), 
     submit to the Administrator such reports as the Administrator 
     considers to be appropriate. Upon receipt of a report under 
     this subsection, the Administrator shall submit a copy of the 
     report to the appropriate committees of the Congress.
       (f) Authorization of Appropriations.--There are authorized 
     to be appropriated, for each of fiscal years 1997 through 
     2001, such sums as may be necessary to carry out this 
     section.

     SEC. 305. REQUIREMENT FOR CRIMINAL HISTORY RECORDS CHECKS.

       (a) In General.--Section 44936(a)(1) is amended--
       (1) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively;
       (2) by striking ``(1)'' and inserting ``(1)(A)''; and
       (3) by adding at the end the following:
       ``(B) The Administrator shall require by regulation that an 
     employment investigation (including a criminal history record 
     check in any case described in subparagraph (C) be conducted 
     for--
       ``(i) individuals who will be responsible for screening 
     passengers or property under section 44901 of this title;
       ``(ii) supervisors of the individuals described in clause 
     (i); and
       ``(iii) such other individuals who exercise security 
     functions associated with baggage or cargo, as the 
     Administrator determines is necessary to ensure air 
     transportation security.
       ``(C) Under the regulations issued under subparagraph (B), 
     a criminal history record check shall, as a minimum, be 
     conducted in any case in which--
       ``(i) an employment investigation reveals a gap in 
     employment of 12 months or more that the individual who is 
     the subject of the investigation does not satisfactorily 
     account for;
       ``(ii) that individual is unable to support statements made 
     on the application of that individual;
       ``(iii) there are significant inconsistencies in the 
     information provided on the application of that individual; 
     or
       ``(iv) information becomes available during the employment 
     investigation indicating a possible conviction for one of the 
     crimes listed in subsection (b)(1)(B).''.
       (b) Applicability.--The amendment made by subsection (a)(3) 
     shall apply to individuals hired to perform functions 
     described in section 44936(a)(1)(B) of title 49, United 
     States Code, after the date of the enactment of this Act, 
     except that the Administrator may, as the Administrator 
     determines to be appropriate, require such employment 
     investigations or criminal history records checks for 
     individuals performing those functions on the date of 
     enactment of this Act. Nothing in section 44936 of title 49, 
     United States Code, as amended by subsection (a) precludes 
     the Administration from permitting the employment of an 
     individual on an interim basis while employment or criminal 
     history record checks required by that section are being 
     conducted.

     SEC. 306. INTERIM DEPLOYMENT OF COMMERCIALLY AVAILABLE 
                   EXPLOSIVE DETECTION EQUIPMENT.

       Section 44913(a) is amended--
       (1) by redesignating paragraph (3) as paragraph (4); and
       (2) by inserting after paragraph (2) the following:
       ``(3) Until such time as the Administrator determines that 
     equipment certified under paragraph (1) is commercially 
     available and has successfully completed operational testing 
     as provided in paragraph (1), the Administrator shall 
     facilitate the deployment of such approved commercially 
     available explosive detection devices as the Administrator 
     determines will enhance aviation security significantly. The 
     Administrator shall require that equipment deployed under 
     this paragraph be replaced by equipment certified under 
     paragraph (1) when equipment certified under paragraph (1) 
     becomes commercially available. The Administrator is 
     authorized, based on operational considerations at individual 
     airports, to waive the required installation of commercially 
     available equipment under paragraph (1) in the interests of 
     aviation security.''.

     SEC. 307. AUDIT OF PERFORMANCE OF BACKGROUND CHECKS FOR 
                   CERTAIN PERSONNEL.

       Section 44936(a) is amended by adding at the end the 
     following:
       ``(3) The Administrator shall provide for the periodic 
     audit of the effectiveness of criminal history record checks 
     conducted under paragraph (1) of this subsection.''.

     SEC. 308. SENSE OF THE SENATE ON PASSENGER PROFILING.

       It is the sense of the Senate that the Administrator of the 
     Federal Aviation Administration, in consultation with the 
     intelligence and law enforcement communities, should continue 
     to assist air carriers in developing computer-assisted and 
     other appropriate passenger profiling programs which should 
     be used in conjunction with other security measures and 
     technologies.

     SEC. 309. AUTHORITY TO USE CERTAIN FUNDS FOR AIRPORT SECURITY 
                   PROGRAMS AND ACTIVITIES.

       (a) In General.--Notwithstanding any other provision of 
     law, funds referred to in subsection (b) may be used to 
     expand and enhance air transportation security programs and 
     other activities (including the improvement of facilities and 
     the purchase and deployment of equipment) to ensure the 
     safety and security of passengers and other persons involved 
     in air travel.
       (b) Covered Funds.--The following funds may be used under 
     subsection (a):
       (1) Project grants made under subchapter 1 of chapter 471 
     of title 49, United States Code.
       (2) Passenger facility fees collected under section 40117 
     of title 49, United States Code.

     SEC. 310. DEVELOPMENT OF AVIATION SECURITY LIAISON AGREEMENT.

       The Secretary of Transportation and the Attorney General, 
     acting through the Administrator of the Federal Aviation 
     Administration and the Director of the Federal Bureau of 
     Investigation, shall enter into an interagency agreement 
     providing for the establishment of an aviation security 
     liaison at existing appropriate Federal agencies' field 
     offices in or near cities served by a designated high-risk 
     airport.

     SEC. 311. REGULAR JOINT THREAT ASSESSMENTS.

       The Administrator of the Federal Aviation Administration 
     and the Director of the Federal Bureau of Investigation shall 
     carry out joint threat and vulnerability assessments on 
     security every 3 years, or more frequently, as necessary, at 
     airports determined to be high risk.

     SEC. 312. BAGGAGE MATCH REPORT.

       Within 30 days after the completion of the passenger bag 
     match pilot program recommended by the Vice President's 
     Commission on Aviation Security, the Administrator shall 
     submit a report to Congress on the safety effectiveness and 
     operational effectiveness of the pilot program. The report 
     shall also assess the extent to which implementation of 
     baggage match requirements, coupled with the best available 
     technologies and methodologies, such as passenger profiling, 
     enhance domestic aviation security.

     SEC. 313. ENHANCED SECURITY PROGRAMS.

       (a) In General.--Chapter 449 is amended by adding at the 
     end of subchapter I the following:

     ``Sec. 44916. Assessments and evaluations

       ``(a) In General.--
       ``(1) Periodic assessments.--The Administrator shall 
     require each air carrier and airport (including the airport 
     owner or operator in cooperation with the air carriers and 
     vendors serving each airport) that provides for intrastate, 
     interstate, or foreign air transportation to conduct periodic 
     vulnerability assessments of the security systems of that air 
     carrier or airport, respectively. The Administration shall 
     perform periodic audits of the assessments referred to in 
     paragraph (1).
       ``(2) Investigations.--The Administrator shall conduct 
     periodic and unannounced inspections of security systems of 
     airports and air carriers to determine the effectiveness and 
     vulnerabilities of such systems. To the extent allowable by 
     law, the Administrator may provide for anonymous tests of 
     those security systems.''.
       (b) Clerical Amendment.--The table of sections for such 
     chapter is amended by inserting after the item relating to 
     section 44915 the following:

``44916. Assessments and evaluations.''.

     SEC. 314. REPORT ON AIR CARGO.

       Within----days after the date of enactment of this Act, the 
     Secretary of Transportation shall prepare a report for the 
     Congress on any changes recommended and implemented as a 
     result of the Vice President's Commission on Aviation 
     Security to enhance and supplement screening and inspection 
     of cargo, mail, and company-shipped materials transported in 
     air commerce. The report shall include an assessment of the 
     effectiveness of such changes, any additional 
     recommendations, and, if necessary, any legislative proposals 
     necessary to carry out additional changes.

                   TITLE IV--MISCELLANEOUS PROVISIONS

     SEC. 401. ACQUISITION OF HOUSING UNITS.

       Section 40110 is amended--
       (1) by redesignating subsection (b) as subsection (c); and
       (2) by inserting after subsection (a) the following:
       ``(b) Acquisition of Housing Units.--
       ``(1) Authority.--In carrying out this part, the 
     Administrator may acquire interests in

[[Page S10696]]

     housing units outside the contiguous United States.
       ``(2) Continuing obligations.--Notwithstanding section 1341 
     of title 31, United States Code, the Administrator may 
     acquire an interest in a housing unit under paragraph (1) 
     even if there is an obligation thereafter to pay necessary 
     and reasonable fees duly assessed upon such unit, including 
     fees related to operation, maintenance, taxes, and insurance.
       ``(3) Certification to congress.--The Administrator may 
     acquire an interest in a housing unit under paragraph (1) 
     only if the Administrator transmits to the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives and the Committee on Commerce, Science, and 
     Transportation of the Senate at least 30 days before 
     completing the acquisition a report containing--
       ``(A) a description of the housing unit and its price; and
       ``(B) a certification that acquiring the housing unit is 
     the most cost-beneficial means of providing necessary 
     accommodations in carrying out this part.
       ``(4) Payment of fees.--The Administrator may pay, when 
     due, fees resulting from the acquisition of an interest in a 
     housing unit under this subsection from any amounts made 
     available to the Administrator.''.

     SEC. 402. PROTECTION OF VOLUNTARILY SUBMITTED INFORMATION.

       (a) In General.--Chapter 401 is amended by redesignating 
     section 40120 as section 40121 and by inserting after section 
     40119 the following:

     ``Sec. 40120. Protection of voluntarily submitted information

       ``(a) In General.--Notwithstanding any other provision of 
     law, neither the Administrator of the Federal Aviation 
     Administration, nor any agency receiving information from the 
     Administrator, shall disclose voluntarily-provided safety or 
     security related information if the Administrator finds 
     that--
       ``(1) the disclosure of the information would inhibit the 
     voluntary provision of that type of information and that the 
     receipt of that type of information aids in fulfilling the 
     Administrator's safety and security responsibilities; and
       ``(2) withholding such information from disclosure would be 
     consistent with the Administrator's safety and security 
     responsibilities.
       ``(b) Regulations.--The Administrator shall issue 
     regulations to carry out this section.''.
       (b) Conforming Amendment.--The table of sections at the 
     beginning of chapter 401 is amended by striking the item 
     relating to section 40120 and inserting the following:

``40120. Protection of voluntarily submitted information.
``40121. Relationship of other laws.''.

     SEC. 403. APPLICATION OF FAA REGULATIONS.

       In revising title 14, Code of Federal Regulations, in a 
     manner affecting intrastate aviation in Alaska, the 
     Administrator of the Federal Aviation Administration shall 
     consider the extent to which Alaska is not served by 
     transportation modes other than aviation, and shall establish 
     such regulatory distinctions as the Administrator deems 
     appropriate.

     SEC. 404. SENSE OF THE SENATE REGARDING THE FUNDING OF THE 
                   FEDERAL AVIATION ADMINISTRATION.

       (a) Findings.--The Senate finds that--
       (1) the Congress is responsible for ensuring that the 
     financial needs of the Federal Aviation Administration, the 
     agency that performs the critical function of overseeing the 
     Nation's air traffic control system and ensuring the safety 
     of air travelers in the United States, are met;
       (2) the number of air traffic control equipment and power 
     failures is increasing, which could place at risk the 
     reliability of our Nation's air traffic control system;
       (3) aviation excise taxes that constitute the Airport and 
     Airway Trust Fund, which provides most of the funding for the 
     Federal Aviation Administration
       (4) the surplus in the Airport and Airway Trust Fund will 
     be spent by the Federal Aviation Administration by December 
     1996;
       (5) the existing system of funding the Federal Aviation 
     Administration will not provide the agency with sufficient 
     short-term or long-term funding;
       (6) this Act creates a sound process to review Federal 
     Aviation Administration funding and develop a funding system 
     to meet the Federal Aviation Administration's long-term 
     funding needs; and
       (7) without immediate action by the Congress to ensure that 
     the Federal Aviation Administration's financial needs are 
     met, air travelers' confidence in the system could be 
     undermined.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that there should be an immediate enactment of an 18-month 
     reinstatement of the aviation excise taxes to provide short-
     term funding for the Federal Aviation Administration.

     SEC. 405. AUTHORIZATION FOR STATE-SPECIFIC SAFETY MEASURES.

       There are authorized to be appropriated to the Federal 
     Aviation Administration not more than $10,000,000 for fiscal 
     year 1997 for the purpose of addressing State-specific 
     aviation safety problems identified by the National 
     Transportation Safety Board.

     SEC. 406. SENSE OF THE SENATE REGARDING THE AIR AMBULANCE 
                   EXEMPTION FROM CERTAIN FEDERAL EXCISE TAXES.

       It is the sense of the Senate that, if the excise taxes 
     imposed by section 4261 or 4271 of the Internal Revenue Code 
     of 1986 are reinstated, the exemption from those taxes 
     provided by section 4261(f) of such Code for air 
     transportation by helicopter for the purpose of providing 
     emergency medical services should be broadened to include air 
     transportation by fixed-wing aircraft for that purpose.

     SEC. 407. FAA SAFETY MISSION.

       (a) In General.--Section 40104 is amended--
       (1) by inserting ``safety of'' before ``air commerce'' in 
     the section caption;
       (2) by inserting ``Safety of'' before ``Air Commerce'' in 
     the caption of subsection (a); and
       (3) by inserting ``safety of'' before ``air commerce'' in 
     subsection (a).
       (b) Clerical Amendment.--The table of sections for chapter 
     401 is amended by striking the item relating to section 40104 
     and inserting:

``40104. Promotion of civil aeronautics and air commerce safety.''.

     SEC. 408. CARRIAGE OF CANDIDATES IN STATE AND LOCAL 
                   ELECTIONS.

       The Administrator of the Federal Aviation Administration 
     shall revise section 91.321 of the Administration's 
     regulations (14 CFR 91.321), relating to the carriage of 
     candidates in Federal elections, to make the same or similar 
     rules applicable to the carriage of candidates for election 
     to public office in State and local government elections.

     SEC. 409. TRAIN WHISTLE REQUIREMENTS.

       The Secretary of Transportation may not implement 
     regulations issued under section 20153(b) of title 49, United 
     States Code, requiring audible warnings to be sounded by a 
     locomotive horn at highway-rail grade crossings, unless--
       (1) in implementing the regulations or providing an 
     exception to the regulations under section 20158(c) of such 
     title, the Secretary of Transportation takes into account, 
     among other criteria--
       (A) the interest of the communities that, as of July 30, 
     1996--
       (i) have in effect restrictions on sounding of a locomotive 
     horn at highway-rail grade crossings; or
       (ii) have not been subject to the routine (as the term is 
     defined by the Secretary) sounding of a locomotive horn at 
     highway-rail grade crossings; and
       (B) the past safety record at each grade crossing involved; 
     and
       (2) whenever the Secretary determines that supplementary 
     safety measures (as that term is defined in section 20153(a) 
     of title 49, United States Code) are necessary to provide an 
     exception referred to in paragraph (1), the Secretary--
       (A) having considered the extent to which local communities 
     have established public awareness initiatives and highway-
     rail crossing traffic law enforcement programs allows for a 
     period of not to exceed 3 years, beginning on the date of 
     that determination, for the installation of those measures; 
     and
       (B) works in partnership with affected communities to 
     provide technical assistance and to develop a reasonable 
     schedule for the installation of those measures.

     SEC. 410 LIMITATION ON AUTHORITY OF STATES TO REGULATE 
                   GAMBLING DEVICES ON VESSELS.

       Subsection (b)(2) of section 5 of the act of January 2, 
     1951 (commonly referred to as the ``Johnson Act'') (64 Stat. 
     1135, chapter 1194; 15 U.S.C. 1175), is amended by adding at 
     the end the following:
       ``(C) Exclusion of certain voyages and segments.--Except 
     for a voyage or segment of a voyage that occurs within the 
     boundaries of the State of Hawaii, a voyage or segment of a 
     voyage is not described in subparagraph (B) if such voyage or 
     segment includes or consists of a segment--
       ``(i) that begins and ends in the same State;
       ``(ii) that is part of a voyage to another State or to a 
     foreign country; and
       ``(iii) in which the vessel reaches the other State or 
     foreign country within 3 days after leaving the State in 
     which such segment begins.''.

            TITLE V--COMMERCIAL SPACE LAUNCH ACT AMENDMENTS

     SEC. 501. COMMERCIAL SPACE LAUNCH AMENDMENTS.

       (a) Amendments.--Chapter 701 of title 49, United States 
     Code, is amended--
       (1) in the table of sections--
       (A) by amending the item relating to section 70104 to read 
     as follows:

``70104. Restrictions on launches, operations, and reentries.'';

       (B) by amending the item relating to section 70108 to read 
     as follows:

``70108. Prohibition, suspension, and end of launches, operation of 
              launch sites and reentry sites, and reentries.'';

     and
       (C) by amending the item relating to section 70109 to read 
     as follows:

``70109. Preemption of scheduled launches or reentries'';

       (2) in section 70101--
       (A) by inserting ``microgravity research,'' after 
     ``information services,'' in subsection (a)(3);
       (B) by inserting ``, reentry,'' after ``launching'' both 
     places it appears in subsection (a)(4);
       (C) by inserting ``, reentry vehicles,'' after ``launch 
     vehicles'' in subsection (a)(5);
       (D) by inserting ``and reentry services'' after ``launch 
     services'' in subsection (a)(6);

[[Page S10697]]

       (E) by inserting ``, reentries,'' after ``launches'' both 
     places it appears in subsection (a)(7);
       (F) by inserting ``, reentry sites,'' after ``launch 
     sites'' in subsection (a)(8);
       (G) by inserting ``and reentry services'' after ``launch 
     services'' in subsection (a)(8);
       (H) by inserting ``reentry sites,'' after ``launch sites,'' 
     in subsection (a)(9);
       (I) by inserting ``and reentry site'' after ``launch site'' 
     in subsection (a)(9);
       (J) by inserting ``reentry vehicles,'' after ``launch 
     vehicles'' in subsection (b)(2);
       (K) by striking ``launch'' in subsection (b)(2)(A);
       (L) by inserting ``and reentry'' after ``commercial 
     launch'' in subsection (b)(3);
       (M) by striking ``launch'' after ``and transfer 
     commercial'' in subsection (b)(3); and
       (N) by inserting ``and development of reentry sites,'' 
     after ``launch-site support facilities,'' in subsection 
     (b)(4)
       (3) in section 70102--
       (A) by striking ``and any payload'' and inserting in lieu 
     thereof ``or reentry vehicle and any payload from Earth'' in 
     paragraph (3);
       (B) by inserting ``or reentry vehicle'' after ``means of a 
     launch vehicle'' in paragraph (8);
       (C) by redesignating paragraphs (10) through (12) as 
     paragraphs (14) through (16), respectively;
       (D) by inserting after paragraph (9) the following new 
     paragraphs:
       ``(10) `reenter' and reentry' mean to return or attempt to 
     return, purposefully, a reentry vehicle and its payload, if 
     any, from Earth orbit or from outer space to Earth.
       ``(11) `reentry services' means--
       ``(A) activities involved in the preparation of a reentry 
     vehicle and its payload, if any, for reentry; and
       ``(B) the conduct of a reentry.
       ``(12) `reentry site' means the location on Earth to which 
     a reentry vehicle is intended to return (as defined in a 
     license the Secretary issues or transfers under this 
     chapter).
       ``(13) `reentry vehicle' means a vehicle designed to return 
     from Earth orbit or outer space to Earth, or a reusable 
     launch vehicle designed to return from outer space 
     substantially intact.''; and
       (E) by inserting ``or reentry services'' after ``launch 
     services'' each place it appears in paragraph (15), as so 
     redesignated by subparagraph (C) of this paragraph;
       (4) in section 70103(b)--
       (A) by inserting ``and Reentries'' after ``Launches'' in 
     the subsection heading;
       (B) by inserting ``and reentries'' after ``space launches'' 
     in paragraph (1); and
       (C) by inserting ``and reentry'' after ``space launch'' in 
     paragraph (2);
       (5) in section 70104--
       (A) by amending the section designation and heading to read 
     as follows:

     ``Sec. 70104. Restrictions on launches, operations, and 
       reentries'';

       (B) by inserting ``or reentry site, or to reenter a reentry 
     vehicle'' after ``operate a launch site'' each place it 
     appears in subsection (a);
       (C) by inserting ``or reentry'' after ``launch or 
     operation'' in subsection (a)(3) and (4);
       (D) in subsection (b)--
       (i) by striking ``launch license'' and inserting in lieu 
     thereof ``license'';
       (ii) by inserting ``or reenter'' after ``may launch''; and
       (iii) by inserting ``or reentering'' after ``related to 
     launching''; and
       (E) in subsection (c)--
       (i) by amending the subsection heading to read as follows: 
     ``Preventing Launches and Reentries.--'';
       (ii) by inserting ``or reentry'' after ``prevent the 
     launch''; and
       (iii) by inserting ``or reentry'' after ``decides the 
     launch'';
       (6) in section 70105--
       (A) by inserting ``or a reentry site, or the reentry of a 
     reentry vehicle,'' after ``operation of a launch site'' in 
     subsection (b)(1); and
       (B) by striking ``or operation'' and inserting in lieu 
     thereof ``, operation, or reentry'' in subsection (b)(2)(A);
       (7) in section 70106(a)--
       (A) by inserting ``or reentry site'' after ``observer at a 
     launch site'';
       (B) by inserting ``or reentry vehicle'' after ``assemble a 
     launch vehicle''; and
       (C) by inserting ``or reentry vehicle'' after ``with a 
     launch vehicle'';
       (8) in section 70108--
       (A) by amending the section designation and heading to read 
     as follows:

     ``Sec. 70108. Prohibition, suspension, and end of launches, 
       operation of launch sites and reentry sites, and 
       reentries'';

     and
       (B) in subsection (a)--
       (i) by inserting ``or reentry site, or reentry of a reentry 
     vehicle,'' after ``operation of a launch site''; and
       (ii) by inserting ``or reentry'' after ``launch or 
     operation'';
       (9) in section 70109--
       (A) by amending the section designation and heading to read 
     as follows:

     ``Sec. 70109. Preemption of scheduled launches or 
       reentries'';

       (B) in subsection (a)--
       (i) by inserting ``or reentry'' after ``ensure that a 
     launch'';
       (ii) by inserting ``; reentry site,'' after ``United States 
     Government launch site'';
       (iii) by inserting ``or reentry date commitment'' after 
     ``launch date commitment'';
       (iv) by inserting ``or reentry'' after ``obtained for a 
     launch'';
       (v) by inserting ``, reentry site,'' after ``access to a 
     launch site'';
       (vi) by inserting ``, or services related to a reentry,'' 
     after ``amount for launch services''; and
       (vii) by inserting ``or reentry'' after ``the scheduled 
     launch''; and
       (C) in subsection (c), by inserting ``or reentry'' after 
     ``prompt launching'';
       (10) in section 70110--
       (A) by inserting ``or reentry'' after ``prevent the 
     launch'' in subsection (a)(2); and
       (B) by inserting ``or reentry site, or reentry of a reentry 
     vehicle,'' after ``operation of a launch site'' in subsection 
     (a)(3)(B);
       (11) in section 70111--
       (A) by inserting ``or reentry'' after ``launch'' in 
     subsection (a)(1)(A);
       (B) by inserting ``and reentry services'' after ``launch 
     services'' in subsection (a)(1)(B);
       (C) by inserting ``or reentry services'' after ``or launch 
     services'' in subsection (a)(2);
       (D) by inserting ``or reentry'' after ``commercial launch'' 
     both places it appears in subsection (b)(1);
       (E) by inserting ``or reentry services'' after ``launch 
     services'' in subsection (b)(2)(C);
       (F) by striking ``or its payload for launch'' in subsection 
     (d) and inserting in lieu thereof ``or reentry vehicle, or 
     the payload of either, for launch or reentry''; and
       (G) by inserting ``, reentry vehicle,'' after 
     ``manufacturer of the launch vehicle'' in subsection (d);
       (12) in section 70112--
       (A) by inserting ``or reentry'' after ``one launch'' in 
     subsection (a)(3);
       (B) by inserting ``or reentry services'' after ``launch 
     services'' in subsection (a)(4);
       (C) by inserting ``or reentry services'' after ``launch 
     services'' each place it appears in subsection (b);
       (D) by inserting ``applicable'' after ``carried out under 
     the'' in paragraphs (1) and (2) of subsection (b);
       (E) by striking ``, Space, and Technology'' in subsection 
     (d)(1);
       (F) by inserting ``or Reentries'' after ``Launches'' in the 
     heading for subsection (e); and
       (G) by inserting ``or reentry site or a reentry'' after 
     ``launch site'' in subsection (e);
       (13) in section 70113(a)(1) and (d)(1) and (2), by 
     inserting ``or reentry'' after ``one launch'' each place it 
     appears;
       (14) in section 70115(b)(1)(D)(i)--
       (A) by inserting ``reentry site,'' after ``launch site,''; 
     and
       (B) by inserting ``or reentry vehicle'' after ``launch 
     vehicle'' both places it appears; and (15) in section 70117--
       (A) by inserting ``or reentry site, or to reenter a reentry 
     vehicle'' after ``operate a launch site'' in subsection (a);
       (B) by inserting ``or reentry'' after ``approval of a space 
     launch'' in subsection (d);
       (C) by amending subsection (f) to read as follows:
       ``(f) Launch Not an Export; Reentry Not an Import.--A 
     launch vehicle, reentry vehicle, or payload that is launched 
     or reentered is not, because of the launch or reentry, an 
     export or import, respectively, for purposes of a law 
     controlling exports or imports.''; and
       (D) in subsection (g)--
       (i) by striking ``operation of a launch vehicle or launch 
     site,'' in paragraph (1) and inserting in lieu thereof 
     ``reentry, operation of a launch vehicle or reentry vehicle, 
     or operation of a launch site or reentry site,''; and
       (ii) by inserting ``reentry,'' after ``launch,'' in 
     paragraph (2).
       (b) Additional Amendments.--(1) Section 70105 of title 49, 
     United States Code, is amended--
       (A) by inserting ``(1)'' before ``A person may apply'' in 
     subsection (a);
       (B) by striking ``receiving an application'' both places it 
     appears in subsection (a) and inserting in lieu thereof 
     ``accepting an application in accordance with criteria 
     established pursuant to subsection (b)(2)(D)'';
       (C) by adding at the end of subsection (a) the following 
     new paragraph:
       ``(2) In carrying out paragraph (1), the Secretary may 
     establish procedures for certification of the safety of a 
     launch vehicle, reentry vehicle, or safety system, procedure, 
     service, or personnel that may be used in conducting licensed 
     commercial space launch or reentry activities.'';
       (D) by striking ``and'' at the end of subsection 
     (b)(2)(B)'';
       (E) by striking the period at the end of subsection 
     (b)(2)(C) and inserting in lieu thereof ``;and'';
       (F) by adding at the end of subsection (b)(2) the following 
     new subparagraph:
       (D) regulations establishing criteria for accepting or 
     rejecting an application for a license under this chapter 
     within 60 days after receipt of such application.'; and
       (G) by inserting ``, or the requirement to obtain a 
     license,'' after ``waive a requirement'' in subsection 
     (b)(3).
       (2) The amendment made by paragraph (1)(B) shall take 
     effect upon the effective date of final regulations issued 
     pursuant to section 70105(b)(2)(D) of title 49, United States 
     Code, as added by paragraph (1)(F) of this subsection.
       (3) Section 70102(5) of title 49, United States Code, is 
     amended--
       (A) by redesignating subparagraphs (A) and (B) as 
     subparagraphs (B) and (C), respectively; and
       (B) by inserting before subparagraph (B), as so 
     redesignated by subparagraph (A) of this paragraph, the 
     following new subparagraph:

[[Page S10698]]

       ``(A) activities directly related to the preparation of a 
     launch site or payload facility for one or more launches;''.
       (4) Section 70102(b) of title 49, United States Code, is 
     amended--
       (A) in the subsection heading, as amended by subsection 
     (a)(4)(A) of this section, by inserting ``And State Sponsored 
     Spaceports'' after ``and Reentries''; and
       (B) in paragraph (1), by inserting ``and State sponsored 
     spaceports'' after ``private sector''.
       (5) Section 70105(a)(1) of title 49, United States Code, as 
     amended by subsection (b)(1) of this section, is amended by 
     inserting at the end the following: ``The Secretary shall 
     submit to the Committee on Science of the House of 
     Representatives and the Committee on Commerce, Science, and 
     Transportation of the Senate a written notice not later than 
     7 days after any occurrence when a license is not issued 
     within the deadline established by this subsection,''.
       (6) Section 70111 of title 49, United States Code, is 
     amended--
       (A) in subsection (a)(1), by inserting after subparagraph 
     (B) the following:

     ``The Secretary shall establish criteria and procedures for 
     determining the priority of competing requests from the 
     private sector and State governments for property and 
     services under this section.'';
       (B) by striking ``actual costs'' in subsection (b)(1) and 
     inserting in lieu thereof ``additive costs only''; and
       (C) by inserting after subsection (b)(2) the following new 
     paragraph:
       ``(3) The Secretary shall ensure the establishment of 
     uniform guidelines for, and consistent implementation of, 
     this section by all Federal agencies.''.
       (7) Section 70112 of title 49, United States Code, is 
     amended--
       (A) in subsection (a)(1), by inserting ``launch, reentry, 
     or site operator'' after ``(1) When a'';
       (B) in subsection (b)(1), by inserting ``launch, reentry, 
     or site operator'' after ``(1)A''; and
       (C) in subsection (f), by inserting ``launch, reentry, or 
     site operator'' after ``carried out under a''.
       (c) Regulations.--(1) Chapter 701 of title 49, United 
     States Code, is amended by adding at the end the following 
     new section:

     Sec. 70120. Regulations

       ``The Secretary of Transportation, within 6 months after 
     the date of the enactment of this section, shall issue 
     regulations to carry out this chapter that include--
       ``(1) guidelines for industry to obtain sufficient 
     insurance coverage for potential damages to third parties;
       ``(2) procedures for requesting and obtaining licenses to 
     operate a commercial launch vehicle and reentry vehicle;
       ``(3) procedures for requesting and obtaining operator 
     licenses for launch and reentry; and
       ``(4) procedures for the application of government 
     indemnification.''.
       (2) The table of sections for such chapter 701 is amended 
     by adding after the item relating to section 70119 the 
     following new item:

``70120. Regulations.''.
TITLE VI--AIR TRAFFIC MANAGEMENT SYSTEM PERFORMANCE IMPROVEMENT     ACT

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``Air Traffic Management 
     System Performance Improvement Act of 1996''.

     SEC. 602. DEFINITIONS.

       For the purposes of this title, the following definitions 
     shall apply:
       (1) Administration.--The term ``Administration'' means the 
     Federal Aviation Administration.
       (2) Administrator.--The term ``Administrator'' means the 
     Administrator of the Federal Aviation Administration.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.

     SEC. 603. EFFECTIVE DATE.

       The provisions of this title and the amendments made by 
     this title shall take effect on the date that is 30 days 
     after the date of the enactment of this Act.

                     Subtitle A--General Provisions

     SEC. 621. FINDINGS.

       The Congress finds the following:
       (1) In many respects the Administration is a unique agency, 
     being one of the few non-defense government agencies that 
     operates 24 hours a day, 365 days of the year, while 
     continuing to rely on outdated technology to carry out its 
     responsibilities for a state-of-the-art industry.
       (2) Until January 1, 1996, users of the air transportation 
     system paid 70 percent of the budget of the Administration, 
     with the remaining 30 percent coming from the General Fund. 
     The General Fund contribution of the years is one measure of 
     the benefit received by the general public, military, and 
     other users of Administration's services.
       (3) The Administration must become a more efficient, 
     effective, and different organization to meet future 
     challenges.
       (4) The need to balance the Federal budget means that it 
     may become more and more difficult to obtain sufficient 
     General Fund contributions to meet the Administration's 
     future budget needs.
       (5) Congress must keep its commitment to the users of the 
     national air transportation system by seeking to spend all 
     moneys collected from them each year and deposited into the 
     Airport and Airway Trust Fund. Existing surpluses 
     representing past receipts must also be spent for the 
     purposes for which such funds were collected.
       (6) The aviation community and the employees of the 
     Administration must come together to improve the system. The 
     Administration must continue to recognize who its customers 
     are and what their needs are, and to design and redesign the 
     system to make safety improvements and increase productivity.
       (7) The Administration projects that commercial operations 
     will increase by 18 percent and passenger traffic by 35 
     percent by the year 2002. Without effective airport expansion 
     and system modernization, these needs cannot be met.
       (8) Absent significant and meaningful reform, future 
     challenges and needs cannot be met.
       (9) The Administration must have a new way of doing 
     business.
       (10) There is widespread agreement within government and 
     the aviation industry that reform of the Administration is 
     essential to safely and efficiently accommodate the projected 
     growth of aviation within the next decade.
       (11) To the extent that the Congress determines that 
     certain segments of the aviation community are not required 
     to pay all of the costs of the government services which they 
     require and benefits which they receive, the Congress should 
     appropriate the difference between such costs and any 
     receipts received from such segment.
       (12) Prior to the imposition of any new charges or user 
     fees on segments of the industry, an independent review must 
     be performed to assess the funding needs and assumptions for 
     operations, capital spending, and airport infrastructure.
       (13) An independent, thorough, and complete study and 
     assessment must be performed of the costs to the 
     Administration and the costs driven by each segment of the 
     aviation system for safety and operational services, 
     including the use of the air traffic control system and the 
     Nation's airports.
       (14) Because the Administration is a unique Federal entity 
     in that it is a participant in the daily operations of an 
     industry, and because the national air transportation system 
     faces significant problems without significant changes, the 
     Administration has been authorized to change the Federal 
     procurement and personnel systems to ensure that the 
     Administration has the ability to keep pace with new 
     technology and is able to match resources with the real 
     personnel needs of the Administration.
       (15) The existing budget system does not allow for long-
     term planning or timely acquisition of technology by the 
     Administration.
       (16) Without reforms in the areas of procurement, 
     personnel, funding, and governance, the Administration will 
     continue to experience delays and cost overruns in its major 
     modernization programs and needed improvements in the 
     performance of the air traffic management system will not 
     occur.
       (17) All reforms should be designed to help the 
     Administration become more responsive to the needs of its 
     customers and maintain the highest standards of safety.

     SEC. 622. PURPOSES.

       The purposes of this title are--
       (1) to ensure that final action shall be taken on all 
     notices of proposed rulemaking of the Administration within 
     18 months after the date of their publication;
       (2) to permit the Administration, with Congressional 
     review, to establish a program to improve air traffic 
     management system performance and to establish appropriate 
     levels of cost accountability for air traffic management 
     services provided by the Administration;
       (3) to establish a more autonomous and accountable 
     Administration within the Department of Transportation; and
       (4) to make the Administration a more efficient and 
     effective organization, able to meet the needs of a dynamic, 
     growing industry, and to ensure the safety of the traveling 
     public.

     SEC. 623. REGULATION OF CIVILIAN AIR TRANSPORTATION AND 
                   RELATED SERVICES BY THE FEDERAL AVIATION 
                   ADMINISTRATION AND DEPARTMENT OF 
                   TRANSPORTATION.

       (a) In General.--Section 106 is amended--
       (1) by striking ``The Administrator'' in the fifth sentence 
     of subsection (b) and inserting ``Except as provided in 
     subsection (f) of this section or in other provisions of law, 
     the Administrator''; and
       (2) by striking subsection (f) and inserting the following:
       ``(f) Authority of the Secretary and the Administrator.--
       ``(1) Authority of the secretary.--Except as provided in 
     paragraph (2), the Secretary of Transportation shall carry 
     out the duties and powers of the Administration.
       ``(2) Authority of the administrator.--The Administrator--
       ``(A) is the final authority for carrying out all 
     functions, powers, and duties of the Administration relating 
     to--
       ``(i) except as otherwise provided in paragraph (3), the 
     promulgation of regulations, rules, orders, circulars, 
     bulletins, and other official publications of the 
     Administration; and
       ``(ii) any obligation imposed on the Administrator, or 
     power conferred on the Administrator, by the Air Traffic 
     Management System Performance Improvement Act of 1996 (or any 
     amendment made by that Act);
       ``(b) shall offer advice and counsel to the President with 
     respect to the appointment

[[Page S10699]]

     and qualifications of any officer or employee of the 
     Administration to be appointed by the President or as a 
     political appointee;
       ``(C) may delegate, and authorize successive redelegations 
     of, to an officer or employee of the Administration any 
     function, power, or duty conferred upon the Administrator, 
     unless such delegation is prohibited by law; and
       ``(D) except as otherwise provided for in this title, and 
     notwithstanding any other provision of law to the contrary, 
     shall not be required to coordinate, submit for approval or 
     concurrence, or seek the advice or views of the Secretary or 
     any other officer or employee of the Department of 
     Transportation on any matter with respect to which the 
     Administrator is the final authority.
       ``(3) Definition of political appointee.--For purposes of 
     this subsection, the term `political appointee' means any 
     individual who--
       ``(A) is employed in a position on the Executive Schedule 
     under sections 5312 through 5316 of title 5;
       ``(B) is a limited term appointee, limited emergency 
     appointee, or noncareer appointee in the Senior Executive 
     Service as defined under section 3132(a) (5), (6), and (7) of 
     title 5, respectively; or
       ``(C) is employed in a position in the executive branch of 
     the Government of a confidential or policy-determining 
     character under Schedule C of subpart C of part 213 of title 
     5 of the Code of Federal Regulations.''.
       (b) Preservation of Existing Authority.--Nothing in this 
     title or the amendments made by this title limits any 
     authority granted to the Administrator by statute or by 
     delegation that was in effect on the day before the date of 
     enactment of this Act.

     SEC. 624. REGULATIONS.

       Section 106(f), as amended by section 623, is further 
     amended--
       (1) by redesignating paragraph (3) as paragraph (4); and
       (2) by inserting after paragraph (2) the following:
       ``(3) Regulations.--
       ``(A) In general.--In the performance of the functions of 
     the Administrator and the Administration, the Administrator 
     is authorized to issue, rescind, and revise such regulations 
     as are necessary to carry out those functions. The issuance 
     of such regulations shall be governed by the provisions of 
     chapter 5 of title 5. The Administrator shall act upon all 
     petitions for rulemaking no later than 6 months after the 
     date such petitions are filed by dismissing such petitions, 
     by informing the petitioner of an intention to dismiss, or by 
     issuing a notice of proposed rulemaking or advanced notice of 
     proposed rulemaking. The Administrator shall issue a final 
     regulation, or take other final action, not later than 18 
     months after the date of publication in the Federal Register 
     of a notice of proposed rulemaking or, in the case of an 
     advanced notice of proposed rulemaking, if issued, not later 
     than 24 months after that date.
       ``(B) Approval of secretary of transportation.--
       ``(i) The Administrator may not issue a proposed regulation 
     or final regulation that is likely to result in the 
     expenditure by State, local, and tribal governments in the 
     aggregate, or by the private sector, of $50,000,000 or more 
     (adjusted annually for inflation beginning with the year 
     following the date of enactment of the Air Traffic Management 
     System Performance Improvement Act of 1996) in any 1 year, or 
     any regulation which is significant, unless the Secretary of 
     Transportation approves the issuance of the regulation in 
     advance. For purposes of this paragraph, a regulation is 
     significant if it is likely to--
       ``(I) have an annual effect on the economy of $100,000,000 
     or more or adversely affect in a material way the economy, a 
     sector of the economy, productivity, competition, jobs, the 
     environment, public health or safety, or State, local, or 
     tribal governments or communities;
       ``(II) create a serious inconsistency or otherwise 
     interfere with an action taken or planned by another agency;
       ``(III) materially alter the budgetary impact of 
     entitlements, grants, user fees, or loan programs or the 
     rights and obligations of recipients thereof; or
       ``(IV) raise novel legal or policy issues arising out of 
     legal mandates.
       ``(ii) In an emergency, the Administrator may issue a 
     regulation described in clause (i) without prior approval by 
     the Secretary, but any such emergency regulation is subject 
     to ratification by the Secretary after it is issued and shall 
     be rescinded by the Administrator within 5 days (excluding 
     Saturdays, Sundays, and legal public holidays) after issuance 
     if the Secretary fails to ratify its issuance.
       ``(iii) Any regulation that does not meet the criteria of 
     clause (i), and any regulation or other action that is a 
     routine or frequent action or a procedural action, may be 
     issued by the Administrator without review or approval by the 
     Secretary.
       ``(iv) The Administrator shall submit a copy of any 
     regulation requiring approval by the Secretary under clause 
     (i) to the Secretary, who shall either approve it or return 
     it to the Administrator with comments within 45 days after 
     receiving it.
       ``(C) Periodic review.--(i) Beginning on the date which is 
     3 years after the date of enactment of the Air Traffic 
     Management System Performance Improvement Act of 1996, the 
     Administrator shall review any unusually burdensome 
     regulation issued by the Administrator after the date of 
     enactment of the Air Traffic Management System Performance 
     Improvement Act of 1996 beginning not later than 3 years 
     after the effective date of the regulation to determine if 
     the cost assumptions were accurate, the benefit of the 
     regulations, and the need to continue such regulations in 
     force in their present form.
       ``(ii) The Administrator may identify for review under the 
     criteria set forth in clause (i) unusually burdensome 
     regulations that were issued before the date of enactment of 
     the Air Traffic Management System Performance Improvement Act 
     of 1996 and that have been in force for more than 3 years.
       ``(iii) For purposes of this subparagraph, the term 
     `unusually burdensome regulation' means any regulation that 
     results in the annual expenditure by State, local, and tribal 
     governments in the aggregate, or by the private sector, of 
     $25,000,000 or more (adjusted annually for inflation 
     beginning with the year following the date of enactment of 
     the Air Traffic Management System Performance Act of 1996) in 
     any year.
       ``(iv) The periodic review of regulations may be performed 
     by advisory committees and the Management Advisory Council 
     established under subsection (p).''.

     SEC. 625. PERSONNEL AND SERVICES.

       Section 106 is amended by adding at the end the following 
     new subsection:
       ``(1) Personnel and Services.--
       ``(1) Officers and employees.--Except as provided in 
     section 40121(a) of this title and section 347 of Public Law 
     104-50, the Administrator is authorized, in the performance 
     of the functions of the Administrator, to appoint, transfer, 
     and fix the compensation of such officers and employees, 
     including attorneys, as may be necessary to carry out the 
     functions of the Administrator and the Administration. In 
     fixing compensation and benefits of officers and employees, 
     the Administrator shall not engage in any type of bargaining, 
     except to the extent provided for in section 40121(a), nor 
     shall the Administrator be bound by any requirement to 
     establish such compensation or benefits at particular levels.
       ``(2) Experts and consultants.--The Administrator is 
     authorized to obtain the services of experts and consultants 
     in accordance with section 3109 of title 5.
       ``(3) Transportation and per diem expenses.--The 
     Administrator is authorized to pay transportation expenses, 
     and per diem in lieu of subsistence expenses, in accordance 
     with chapter 57 of title 5.
       ``(4) Use of personnel from other agencies.--The 
     Administrator is authorized to utilize the services of 
     personnel of any other Federal agency (as such term is 
     defined under section 551(1) of title 5).
       ``(5) Voluntary services.--
       ``(A) In general.--(i) In exercising the authority to 
     accept gifts and voluntary services under section 326 of this 
     title, and without regard to section 1342 of title 31, the 
     Administrator may not accept voluntary and uncompensated 
     services if such services are used to displace Federal 
     employees employed on a full-time, part-time, or seasonal 
     basis.
       ``(ii) the Administrator is authorized to provide for 
     incidental expenses, including transportation, lodging, and 
     subsistence for volunteers who provide voluntary services 
     under this subsection.
       ``(iii) An individual who provides voluntary services under 
     this subsection shall not be considered a Federal employee 
     for any purpose other than for purposes of chapter 81 of 
     title 5, relating to compensation for work injuries, and 
     chapter 171 of title 28, relating to tort claims.''.

     SEC. 626. CONTRACTS.

       Section 106(l), as added by section 625 of this title, is 
     amended by adding at the end the following new paragraph:
       ``(6) Contracts.--The Administrator is authorized to enter 
     into and perform such contracts, leases, cooperative 
     agreements, or other transactions as may be necessary to 
     carry out the functions of the Administrator and the 
     Administration. The Administrator may enter into such 
     contracts, leases, cooperative agreements, and other 
     transactions with any Federal agency (as such term is defined 
     in section 551(1) of title 5) or any instrumentality of the 
     United States, any State, territory, or possession, or 
     political subdivision thereof, any other governmental entity, 
     or any person, firm, association, corporation, or educational 
     institution, on such terms and conditions as the 
     Administrator may consider appropriate.''.

     SEC. 627. FACILITIES.

       Section 106, as amended by section 625 of this title, is 
     further amended by adding at the end the following new 
     subsection:
       ``(m) Cooperation by Administrator.--With the consent of 
     appropriate officials, the Administrator may, with or without 
     reimbursement, use or accept the services, equipment, 
     personnel, and facilities of any other Federal agency (as 
     such term is defined in section 551(1) of title 5) and any 
     other public or private entity. The administrator may also 
     cooperate with appropriate officials of other public and 
     private agencies and instrumentalities concerning the use of 
     services, equipment, personnel, and facilities. The head of 
     each Federal agency shall cooperate with the Administrator in 
     making the services, equipment, personnel, and facilities of 
     the Federal agency available to the Administrator. The head 
     of a Federal agency is authorized, notwithstanding any other 
     provision of law, to transfer to or to receive from the 
     Administration, without reimbursement,

[[Page S10700]]

     supplies and equipment other than administrative supplies or 
     equipment.''.

     SEC. 628. PROPERTY.

       Section 106, as amended by section 627 of this title, is 
     further amended by adding at the end the following new 
     subsection:
       ``(n) Acquisition.--
       ``(1) In general.--The Administrator is authorized--
       ``(A) to acquire (by purchase, lease, condemnation, or 
     otherwise), construct, improve, repair, operate, and 
     maintain--
       ``(i) air traffic control facilities and equipment;
       ``(ii) research and testing sites and facilities; and
       ``(iii) such other real and personal property (including 
     office space and patents), or any interest therein, within 
     and outside the continental United States as the 
     Administrator considers necessary;
       ``(B) to lease to others such real and personal property; 
     and
       ``(C) to provide by contract or otherwise for eating 
     facilities and other necessary facilities for the welfare of 
     employees of the Administration at the installations of the 
     Administration, and to acquire, operate, and maintain 
     equipment for these facilities.
       ``(2) Title.--Title to any property or interest therein 
     acquired pursuant to this subsection shall be held by the 
     Government of the United States.''.

     SEC. 629. TRANSFERS OF FUNDS FROM OTHER FEDERAL AGENCIES.

       Section 106, as amended by section 628 of this title, is 
     further amended by adding at the end the following new 
     subsection:
       ``(o) Transfers of Funds.--The Administrator is authorized 
     to accept transfers of unobligated balances and unexpended 
     balances of funds appropriated to other Federal agencies (as 
     such term is defined in section 551(1) of title 5) to carry 
     out functions transferred by law to the Administrator or 
     functions transferred pursuant to law to the Administrator on 
     or after the date of the enactment of the Air Traffic 
     Management System Performance Improvement Act of 1996.''.

     SEC. 630. MANAGEMENT ADVISORY COUNCIL.

       Section 106, as amended by section 629 of this title, is 
     further amended by adding at the end the following new 
     subsection:
       ``(p) Management Advisory Council.--
       ``(1) Establishment.--Within 3 months after the date of 
     enactment of the Air Traffic Management System Performance 
     Improvement Act of 1996, the Administrator shall establish an 
     advisory council which shall be known as the Federal Aviation 
     Management Advisory Council (in this subsection referred to 
     as the `Council'). With respect to Administration management, 
     policy, spending, funding, and regulatory matters affecting 
     the aviation industry, the Council may submit comments, 
     recommended modifications, and dissenting views to the 
     Administrator. The Administrator shall include in any 
     submission to Congress, the Secretary, or the general public, 
     and in any submission for publication in the Federal 
     Register, a description of the comments, recommended 
     modifications, and dissenting views received from the 
     Council, together with the reasons for any differences 
     between the views of the Council and the views or actions of 
     the Administrator.
       ``(2) Membership.--The Council shall consist of 15 members, 
     who shall consist of--
       ``(A) a designee of the Secretary of Transportation;
       ``(B) a designee of the Secretary of Defense; and
       ``(C) 13 members representing aviation interests, appointed 
     by the President by and with the advice and consent of the 
     Senate.
       ``(3) Qualifications.--No member appointed under paragraph 
     (2)(C) may serve as an officer or employee of the United 
     States Government while serving as a member of the Council.
       ``(4) Functions.--
       ``(A) In general.--(i) The Council shall provide advice and 
     counsel to the Administrator on issues which affect or are 
     affected by the operations of the Administrator. The Council 
     shall function as an oversight resource for management, 
     policy, spending, and regulatory matters under the 
     jurisdiction of the Administration.
       ``(ii) The Council shall review the rulemaking cost-benefit 
     analysis process and develop recommendations to improve the 
     analysis and ensure that the public interest is fully 
     protected.
       ``(iii) The Council shall review the process through which 
     the Administration determines to use advisory circulars and 
     service bulletins.
       ``(B) Meetings.--The Council shall meet on a regular and 
     periodic basis or at the call of the chairman or of the 
     Administrator.
       ``(C) Access to documents and staff.--The Administration 
     may give the Council appropriate access to relevant documents 
     and personnel of the Administration, and the Administrator 
     shall make available, consistent with the authority to 
     withhold commercial and other proprietary information under 
     section 552 of title 5 (commonly known as the `Freedom of 
     Information Act'), cost data associated with the acquisition 
     and operation of air traffic service systems. Any member of 
     the Council who receives comercial or other proprietary data 
     from the Administrator shall be subject to the provisions of 
     section 1905 of title 18, pertaining to unauthorized 
     disclosure of such information.
       ``(5) Federal advisory committee act not to apply.--The 
     Federal Advisory Committee Act (5 U.S.C. App.) does not apply 
     to the Council or such aviation rulemaking committees as the 
     Administrator shall designate.
       ``(6) Administrative matters.--
       ``(A) Terms of members.--(i) Except as provided in 
     subparagraph (B), members of the Council appointed by the 
     President under paragraph (2)(C) shall be appointed for a 
     term of 3 years.
       ``(ii) Of the members first appointed by the President--
       ``(I) 4 shall be appointed for terms of 1 year;
       ``(II) 5 shall be appointed for terms of 2 years; and
       ``(III) 4 shall be appointed for terms of 3 years.
       ``(iii) An individual chosen to fill a vacancy shall be 
     appointed for the unexpired term of the member replaced.
       ``(iv) A member whose term expires shall continue to serve 
     until the date on which the member's successor takes office.
       ``(B) Chairman; vice chairman.--The Council shall elect a 
     chair and a vice chair from among the members appointed under 
     paragraph (2)(C), each of whom shall serve for a term of 1 
     year. The vice chair shall perform the duties of the chairman 
     in the absence of the chairman.
       ``(C) Travel and per diem.--Each member of the Council 
     shall be paid actual travel expenses, and per diem in lieu of 
     subsistence expenses when away from his or her usual place of 
     residence, in accordance with section 5703 of title 5.
       ``(D) Detail of personnel from the administration.--The 
     Administrator shall make available to the Council such staff, 
     information, and administrative services and assistance as 
     may reasonably be required to enable the Council to carry out 
     its responsibilities under this subsection.
       ``(7) Report to Congress.--The Council, in conjunction with 
     the Administration, shall undertake a review of the overall 
     condition of aviation safety in the United States and 
     emerging trends in the safety of particular sections of the 
     aviation industry. This shall include an examination of--
       ``(A) the extent to which the dual mission of the 
     Administration to promote and regulate civil aviation may 
     affect aviation safety and provide recommendations to 
     Congress for any necessary changes the Council, in 
     conjunction with Administration, deems appropriate; and
       ``(B) the adequacy of staffing and training resources for 
     safety personnel of the Administration, including safety 
     inspectors.
     The Council shall report to Congress within 180 days after 
     the date of enactment of this Act on its findings and 
     recommendations under this paragraph.

     SEC. 631. AIRCRAFT ENGINE STANDARDS.

       Subsection (a)(1) of section 44715 is amended to read as 
     follows:
       ``(a) Standards and Regulations.--(1) To relieve and 
     protect the public health and welfare from aircraft noise, 
     sonic boom, and aircraft engine emissions, the Administrator 
     of the Federal Aviation Administration, as he deems 
     necessary, shall prescribe--
       ``(A) standards to measure aircraft noise and sonic boom;
       ``(B) regulations to control and abate aircraft noise and 
     sonic boom; and
       ``(C) emission standards applicable to the emission of any 
     air pollutant from any class or classes of aircraft engines 
     which, in the judgment of the Administrator, causes, or 
     contributes to, air pollution which may reasonably be 
     anticipated to endanger public health or welfare.''.

     SEC. 632. RURAL AIR FARE STUDY.

       (a) In General.--The Secretary shall conduct a study to--
       (1) compare air fares paid (calculated as both actual and 
     adjusted air fares) for air transportation on flights 
     conducted by commercial air carriers--
       (A) between--
       (i) nonhub airports located in small communities; and
       (ii) large hub airports; and
       (B) between large hub airports;
       (2) analyse--
       (A) the extent to which passenger service that is provided 
     from nonhub airports is provided on--
       (i) regional commuter commercial air carriers; or
       (ii) major air carriers;
       (B) the type of aircraft employed in providing passenger 
     service at nonhub airports; and
       (C) whether there is competition among commercial air 
     carriers with respect to the provision of air service to 
     passengers from nonhub airports.
       (b) Findings.--The Secretary shall include in the report of 
     the study conducted under subsection (a) findings 
     concerning--
       (1) whether passengers who use commercial air carriers to 
     and from rural areas (as defined by the Secretary) pay a 
     disproportionately greater price for that transportation than 
     passengers who use commercial air carriers between urban 
     areas (as defined by the Secretary);
       (2) the nature of competition, if any, in rural markets (as 
     defined by the Secretary) for commercial air carriers;
       (3) whether a relationship exists between higher air fares 
     and competition among commercial air carriers for passengers 
     traveling on jet aircraft from small communities (as defined 
     by the Secretary) and, if such a relation exists, the nature 
     of that relationship;
       (4) the number of small communities that have lost air 
     service as a result of the deregulation of commercial air 
     carriers with respect to air fares;

[[Page S10701]]

       (5) the number of small communities served by airports with 
     respect to which, after commercial air carrier fares were 
     deregulated, jet aircraft service was replaced by turboprop 
     aircraft service; and
       (6) Large hub airport.--The term ``large hub airport'' 
     shall be defined by the Secretary but the definition may not 
     include a small hub airport, as that term is defined in 
     section 41731(a)(5) of such title.
       (7) Major air carrier.--The term ``major air carrier'' 
     shall be defined by the Secretary.
       (8) Nonhub airport.--The term ``nonhub airport'' is defined 
     in section 41731(a)(4) of such title.
       (9) Regional commuter air carrier.--The term ``regional 
     commuter air carrier'' shall be defined by the Secretary.

   Subtitle B--Federal Aviation Administration Streamlining Programs

     SEC. 651. REVIEW OF ACQUISITION MANAGEMENT SYSTEM.

       Not later than April 1, 1999, the Administration shall 
     employ outside experts to provide an independent evaluation 
     of the effectiveness of its acquisition management system 
     within 3 months after such date. The Administrator shall 
     transmit a copy of the evaluation to the Committee on 
     Commerce, Science, and Transportation of the Senate, and the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives.

     SEC. 652. AIR TRAFFIC CONTROL MODERNIZATION REVIEWS.

       Chapter 401, as amended by section 402 of this Act, is 
     amended by redesignating section 40121 as 40123, and by 
     inserting after section 40120 the following new section:

     ``Sec. 40121. Air traffic control modernization reviews

       ``(a) Required Terminations of Acquisitions.--The 
     Administrator of the Federal Aviation Administration 
     (hereinafter referred to in this section as the 
     `Administrator') shall terminate any program initiated after 
     the date of enactment of the Air Traffic Management System 
     Performance Improvement Act of 1996 and funded under the 
     Facilities and Equipment account that--
       ``(1) is more than 50 percent over the cost goal 
     established for the program;
       ``(2) fails to achieve at least 50 percent of the 
     performance goals established for the program; or
       ``(3) is more than 50 percent behind schedule as determined 
     in accordance with the schedule goal established for the 
     program.
       ``(b) Authorized Terminations of Acquisitions.--The 
     Administrator shall consider terminating, under the authority 
     of subsection (a), any substantial acquisition that--
       ``(1) is more than 10 percent over the cost goal 
     established for the program;
       ``(2) fails to achieve at least 90 percent of the 
     performance goals established for the program; or
       ``(3) is more than 10 percent behind schedule as determined 
     in accordance with the schedule goal established for the 
     program.
       ``(c) Exceptions and Report.--
       ``(1) Continuance of program, etc.--Notwithstanding 
     subsection (a), the Administrator may continue an 
     acquisitions program required to be terminated under 
     subsection (a) if the Administrator determines that 
     termination would be inconsistent with the development or 
     operation of the national air transportation system in a safe 
     and efficient manner.
       ``(2) Department of defense.--The Department of Defense 
     shall have the same exemptions from acquisition laws as are 
     waived by the Administrator under section 348(b) of Public 
     Law 104-50 when engaged in joint actions to improve or 
     replenish the national air traffic control system. The 
     Administration may require real property, goods, and services 
     through the The Department of Defense, or other appropriate 
     agencies, but is bound by the acquisition laws and 
     regulations governing those cases.
       ``(3) Report.--If the Administrator makes a determination 
     under paragraph (1), the Administrator shall transmit a copy 
     of the determination, together with a statement of the basis 
     for the determination, to the Committees on Appropriations of 
     the Senate and the House of Representatives, the Committee on 
     Commerce, Science, and Transportation of the Senate, and the 
     Committee on Transportation and infrastructure of the House 
     of Representatives.''.

     SEC. 653. FEDERAL AVIATION ADMINISTRATION PERSONNEL 
                   MANAGEMENT SYSTEM.

       Chapter 401, as amended by section 652, is further amended 
     by inserting after section 40121 the following new section:

     ``Sec. 40122. Federal Aviation Administration personnel 
       management system

       ``(a) In General.--
       ``(1) Consultation and negotiation.--In developing and 
     making changes to the personnel management system initially 
     implemented by the Administrator on April 1, 1996, the 
     Administrator shall negotiate with the exclusive bargaining 
     representatives of employees of the Administration certified 
     under section 7111 of title 5 and consult with other 
     employees of the Administration.
       ``(2) Mediation.--If the Administrator does not reach an 
     agreement under paragraph (1) with the exclusive bargaining 
     representatives, the services of the Federal Mediation and 
     Conciliation Service shall be used to attempt to reach such 
     agreement. If the services of the Federal Mediation and 
     Conciliation Service do not lead to an agreement, the 
     Administrator's proposed change to the personnel management 
     system shall not take effect until 60 days have elapsed after 
     the Administrator has transmitted the proposed change, along 
     with the objections of the exclusive bargaining 
     representatives to the change, and the reasons for such 
     objections, to the Congress.
       ``(3) Cost savings and productivity goals.--The 
     Administration and the exclusive bargaining representatives 
     of the employees shall use every reasonable effort to find 
     cost savings and to increase productivity within each of the 
     affected bargaining units.
       ``(4) Annal budget discussions.--The Administration and the 
     exclusive bargaining representatives of the employees shall 
     meet annually for the purpose of finding additional cost 
     savings within the Administration's annual budget as it 
     applies to each of the affected bargaining units and 
     throughout the agency.
       ``(b) Expert Evaluation.--On the date that is 3 years after 
     the personnel management system is implemented, the 
     Administration shall employ outside experts to provide an 
     independent evaluation of the effectiveness of the system 
     within 3 months after such date. For this purpose, the 
     Administrator may utilize the services of experts and 
     consultants under section 3109 of title 5 without regard to 
     the limitation imposed by the last sentence of section 
     3109(b) of such title, and may contract on a sole source 
     basis, notwithstanding any other provision of law to the 
     contrary.
       ``(c) Pay Restriction.--No offer or employee of the 
     Administration may receive an annual rate of basic pay in 
     excess of the annual rate of basic pay payable to the 
     Administrator.
       ``(d) Ethics.--The Administration shall be subject to 
     Executive Order No. 12674 and regulations and opinions 
     promulgated by the Office of Government Ethics, including 
     those set forth in section 3635 of title 5 of the Code of 
     Federal Regulations.
       ``(e) Employee Protections.--Until July 1, 1999, basic 
     wages (including locality pay) and operational differential 
     pay provided employees of the Administration shall not be 
     involuntarily adversely affected by reason of the enactment 
     of this section, except for unacceptable performance or by 
     reason of a reduction in force or reorganization or by 
     agreement between the Administration and the affected 
     employees' exclusive bargaining representative.
       ``(f) Labor-Management Agreements.--Except as otherwise 
     provided by this title, all labor-management agreements 
     covering employees of the Administration that are in effect 
     on the effective date of the Air Traffic Management System 
     Performance Improvement Act of 1996 shall remain in effect 
     until their normal expiration date, unless the Administrator 
     and the exclusive bargaining representation agree to the 
     contrary.''.

     SEC. 654. CONFORMING AMENDMENT.

       The chapter analysis for chapter 401, as amended by section 
     403(b) of this Act, is amended by striking the item relating 
     to section 40120 and inserting the following new items:

``40121. Air traffic control modernization reviews.
``40122. Federal Aviation Administration personnel management system.
``40123. Relationship to other laws.''.

  Subtitle C--System To Fund Certain Federal Aviation Administration 
                               Functions

     SEC. 671. FINDINGS.

       The Congress finds the following:
       (1) The Administration is recognized throughout the world 
     as a leader in aviation safety.
       (2) The Administration certifies aircraft, engines, 
     propellers, and other manufactured parts.
       (3) The Administration certifies more than 650 training 
     schools for pilots and nonpilots, more than 4,858 repair 
     stations, and more than 193 maintenance schools.
       (4) The Administration certifies pilot examiners, who are 
     then qualified to determine if a person has the skills 
     necessary to become a pilot.
       (5) The Administration certifies more than 6,000 medical 
     examiners, each of whom is then qualified to medically 
     certify the qualifications of pilots and nonpilots.
       (6) The Administration certifies more than 470 airports, 
     and provides a limited certification for another 205 
     airports. Other airports in the United States are also 
     reviewed by the Administration.
       (7) The Administration each year performs more than 355,000 
     inspections.
       (8) The Administration issues more than 655,000 pilot's 
     licenses and more than 560,000 nonpilot's licenses (including 
     mechanics).
       (9) The Administration's certification means that the 
     product meets worldwide recognized standards of safety and 
     reliability.
       (10) The Administration's certification means aviation-
     related equipment and services meet worldwide recognized 
     standards.
       (11) The Administration's certification is recognized by 
     governments and businesses throughout the world and as such 
     may be a valuable element for any company desiring to sell 
     aviation-related products throughout the world.
       (12) The Administration's certification may constitute a 
     valuable license, franchise, privilege, or benefits for the 
     holders.
       (13) The Administration also is a major purchaser of 
     computers, radars, and other systems needed to run the air 
     traffic control system. The Administration's design, 
     acceptance, commissioning, or certification of such

[[Page S10702]]

     equipment enables the private sector to market those products 
     around the world, and as such confers a benefit on the 
     manufacturer.
       (14) The Administration provides extensive services to 
     public use aircraft.

     SEC. 672. PURPOSES.

       The purposes of this title are--
       (1) to provide a financial structure for the Administration 
     so that it will be able to support the future growth in the 
     national aviation and airport system;
       (2) to review existing and alternative funding options, 
     including incentive-based fees for services, and establish a 
     program to improve air traffic management system performance 
     and to establish appropriate levels of cost accountability 
     for air traffic management services provided by the 
     Administration;
       (3) to ensure that any funding will be dedicated solely for 
     the use of the Administration;
       (4) to authorize the Administration to recover the costs of 
     its services from those who benefit from, but do not 
     contribute to, the national aviation system and the services 
     provided by the Administration;
       (5) to consider a fee system based on the cost or value of 
     the services provided and other funding alternatives;
       (6) to develop funding options for the Congress in order to 
     provide for the long-term efficient and cost-effective 
     support of the Administration and the aviation system; and
       (7) to achieve a more efficient and effective 
     Administration for the benefit of the aviation transportation 
     industry.

     SEC. 673. USER FEES FOR VARIOUS FEDERAL AVIATION 
                   ADMINISTRATION SERVICES.

       (1) In General.--Chapter 453 is amended by striking section 
     45301 and inserting the following new section:

     ``Sec. 45301. General provisions

       ``(a) Schedule of Fees.--The Administrator shall establish 
     a schedule of new fees, and a collection process for such 
     fees, for the following services provided by the 
     Administration:
       ``(1) Air traffic control and related services provided to 
     aircraft other than military and civilian aircraft of the 
     United States Government or of a foreign government that 
     neither take off from, nor land in, the United States.
       ``(2) Services (other than air traffic control services) 
     provided to a foreign government.
       ``(b) Limitations.--
       ``(1) Authorization and impact considerations.--In 
     establishing fees under subsection (a), the Administrator--
       ``(A) is authorized to recover in fiscal year 1997 
     $100,000,000; and
       ``(B) shall ensure that each of the fees required by 
     subsection (a) is directly related to the Administration's 
     costs of providing the service rendered.
       ``(2) Publication; comment.--The Administrator shall 
     publish in the Federal Register an initial fee schedule and 
     associated collection process as an interim final rule, 
     pursuant to which public comment will be sought and a final 
     rule issued.
       ``(c) Use of Experts and Consultants.--In developing the 
     system, the Administrator may consult with such 
     nongovernmental experts as the Administrator may employ and 
     the Administrator may utilize the services of experts and 
     consultants under section 3109 of title 5 without regard to 
     the limitation imposed by the last sentence of section 
     3109(b) of such title, and may contract on a sole source 
     basis, notwithstanding any other provision of law to the 
     contrary. Notwithstanding any other provision of law to the 
     contrary, the Administrator may retain such experts under a 
     contract awarded on a basis other than a competitive basis 
     and without regard to any such provisions requiring 
     competitive bidding or precluding sole source contract 
     authority.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     453 is amended by striking the item relating to section 45301 
     and inserting the following new item:

``45301. General provisions.''.
       (c) Repeal.--
  (1) In general.--Section 70118 is repealed.
  (2) Conforming amendment.--The chapter analysis for chapter 701 is 
amended by striking the item relating to section 70118.

     SEC. 674. INDEPENDENT ASSESSMENT AND TASK FORCE TO REVIEW 
                   EXISTING AND INNOVATIVE FUNDING MECHANISMS.

       (a) Independent Assessment.--
       (1) Initiation.--As soon as all members of the task force 
     are appointed under subsection (b) of this section, the 
     Administrator shall contract with an entity independent of 
     the Administration and the Department of Transportation to 
     conduct a complete independent assessment of the financial 
     requirements of the Administration through the year 2002.
       (2) Assessment criteria.--The Administrator shall provide 
     to the independent entity estimates of the financial 
     requirements of the Administration for the period described 
     in paragraph (1), using as a base the fiscal year 1997 
     authorization levels established by the Congress. The 
     independent assessment shall be based on an objective 
     analysis of agency funding needs.
       (3) Certain factors to be taken into account.--The 
     independent assessment shall take into account all relevant 
     factors, including--
       (A) anticipated air traffic forecasts;
       (B) other workload measures;
       (C) estimated productivity gains, if any, which contribute 
     to budgetary requirements;
       (D) the need for programs; and
       (E) the need to provide for continued improvements in all 
     facets of aviation safety, along with operational 
     improvements in air traffic control.
       (4) Cost allocation.--The independent assessment shall also 
     assess the costs to the Administration occasioned by the 
     provision of services to each segment of the aviation system.
       (5) Deadline.--The independent assessment shall be 
     completed no later than 90 days after the contract is 
     awarded, and shall be submitted to the task force, the 
     Secretary, the Secretary of the Treasury, the Committee on 
     Commerce, Science, and Transportation and the Committee on 
     Finance of the Senate, and the Committee on Transportation 
     and Infrastructure and the Committee on Ways and Means of the 
     House of Representatives.
       (b) Task Force.--
       (1) Establishment.--Not later than 30 days after the date 
     of enactment of this Act, the Secretary, in consultation with 
     the Secretary of the Treasury, shall establish an 11-member 
     task force, independent of the Administration and the 
     Department of Transportation.
       (2) Membership.--The members of the task force shall be 
     selected from among individuals who have expertise in the 
     aviation industry and who are able, collectively, to 
     represent a balance view of the issues important to general 
     aviation, major air carriers, air cargo carriers, regional 
     air carriers, business aviation, airports, aircraft 
     manufacturers, the financial community, aviation industry 
     workers, and airline passengers. At least one member of the 
     task force shall have detailed knowledge of the congressional 
     budgetary process.
       (3) Hearings and consultation.--
       (a) Hearings.--The task force shall take such testimony and 
     solicit and receive such comments from the public and other 
     interested parties as it considers appropriate, shall conduct 
     2 public hearings after affording adequate notice to the 
     public thereof, and is authorized to conduct such additional 
     hearings as may be necessary.
       (B) Consultation.--The task force shall consult on a 
     regular and frequent basis with the Secretary of 
     Transportation, the Secretary of the Treasury, the Committee 
     on Commerce, Science, and Transportation and the Committee on 
     Finance of the Senate, and the Committee on Transportation 
     and Infrastructure and the Committee on Ways and Means of the 
     House of Representatives.
       (C) FACA not to apply.--The task force shall not be 
     considered an advisory committee for purposes of the Federal 
     Advisory Committee Act (5 U.S.C. App.).
       (4) Duties.--
       (A) Report to secretary.--
       (i) In general.--The task force shall submit a report 
     setting forth a comprehensive analysis of the 
     Administration's budgetary requirements through fiscal year 
     2002, based upon the independent assessment under subsection 
     (a), that analyzes alternative financing and funding means 
     for meeting the needs of the aviation system through the year 
     2002. The task force shall submit a preliminary report of 
     that analysis to the Secretary not later than 6 months after 
     the independent assessment is completed under subsection (a). 
     The Secretary shall provide comments on the preliminary 
     report to the task force within 30 days after receiving it. 
     The task force shall issue a final report of such 
     comprehensive analysis within 30 days after receiving the 
     Secretary's comments on its preliminary report.
       (i) Contents.--The report submitted by the task force under 
     clause (i)--
       (I) shall consider the independent assessment under 
     subsection (a);
       (II) shall consider estimated cost savings, if any, 
     resulting from the procurement and personnel reforms included 
     in this Act or in sections 347 and 348 of Public Law 104-50, 
     and additional financial initiatives;
       (III) shall include specific recommendations to the 
     Congress on how the Administration can reduce costs, raise 
     additional revenue for the support of agency operations, and 
     accelerate modernization efforts; and
       (IV) shall include a draft bill containing the changes in 
     law necessary to implement its recommendations.
       (B) Recommendations.--The task force shall make such 
     recommendations under subparagraph (A)(III) as the task force 
     deems appropriate. Those recommendations may include--
       (i) alternative financing and funding proposals, including 
     linked financing proposals;
       (ii) modifications to existing levels of Airports and 
     Airways Trust Fund receipts and taxes for each type of tax;
       (iii) establishment of a cost-based user fee system based 
     on, but not limited to, criteria under subparagraph (F) and 
     methods to ensure that costs are borne by users on a fair 
     and equitable basis;
       (iv) methods to ensure that funds collected from the 
     aviation community are able to meet the needs of the agency;
       (v) methods to ensure that funds collected from the 
     aviation community and passengers are used to support the 
     aviation system;
       (vi) means of meeting the airport infrastructure needs for 
     large, medium, and small airports; and
       (vii) any other matter the task force deems appropriate to 
     address the funding and needs of the Administration and the 
     aviation system.

[[Page S10703]]

       (C) Additional recommendations.--The task force report may 
     also make recommendations concerning--
       (i) means of improving productivity by expanding and 
     accelerating the use of automation and other technology;
       (ii) means of contracting out services consistent with this 
     Act, other applicable law, and safety and national defense 
     needs;
       (iii) methods to accelerate air traffic control 
     modernization and improvements in aviation safety and safety 
     services;
       (iv) the elimination of unneeded programs; and
       (v) a limited innovative program based on funding 
     mechanisms such as loan guarantees, financial partnerships 
     with for-profit private sector entities, government-sponsored 
     enterprises, and revolving loan funds, as a means of funding 
     specific facilities and equipment projects, and to provide 
     limited additional funding alternatives for airport capacity 
     development.
       (D) Impact assessment for recommendations.--For each 
     recommendation contained in the task force's report, the 
     report shall include a full analysis and assessment of the 
     impact implementation of the recommendation would have on--
       (i) safety;
       (ii) administrative costs;
       (iii) the congressional budget process;
       (iv) the economics of the industry (including the 
     proportionate share of all users);
       (v) the ability of the Administration to utilize the sums 
     collected; and
       (vi) the funding needs of the Administration.
       (E) Trust fund tax recommendations.--If the task force's 
     report includes a recommendation that the existing Airport 
     and Airways Trust Fund tax structure be modified, the report 
     shall--
       (i) state the specific rates for each group affected by the 
     proposed modifications;
       (ii) consider the impact such modifications shall have on 
     specific users and the public (including passengers); and
       (iii) state the basis for the recommendations.
       (F) Fee system recommendations.--If the task force's report 
     includes a recommendation that a fee system be established, 
     including an air traffic control performance-based user fee 
     system, the report shall consider--
       (i) the impact such a recommendation would have on 
     passengers, air fares (including low-fare, high frequency 
     service), service, and competition;
       (ii) existing contributions provided by individual air 
     carriers toward funding the Administration and the air 
     traffic control system through contributions to the Airport 
     and Airways Trust Fund;
       (iii) continuing the promotion of fair and competitive 
     practices;
       (iv) the unique circumstances associated with interisland 
     air carrier service in Hawaii and rural air service in 
     Alaska;
       (v) the impact such a recommendation would have on service 
     to small communities;
       (vi) the impact such a recommendation would have on 
     services provided by regional air carriers;
       (vii) alternative methodologies for calculating fees so as 
     to achieve a fair and reasonable distribution of costs of 
     service among users;
       (viii) the usefulness of phased-in approaches to 
     implementing such a financing system;
       (ix) means of assuring the provision of general fund 
     contributions, as appropriate, toward the support of the 
     Administration; and
       (x) the provision of incentives to encourage greater 
     efficiency in the provision of air traffic services by the 
     Administration and greater efficiency in the use of air 
     traffic services by aircraft operators.
       (G) Access to documents and staff.--The Administration may 
     give the task force appropriate access to relevant documents 
     and personnel of the Administration, and the Administrator 
     shall make available, consistent with the authority to 
     withhold commercial and other proprietary information under 
     section 552 of title 5, United States Code (commonly known as 
     the `Freedom of Information Act') cost data associated with 
     the acquisition and operation of air traffic service systems. 
     Any member of the task force who receives commercial or other 
     proprietary data from the Administrator shall be subject 
     to the provisions of section 1905 of title 18, United 
     States Code, pertaining to unauthorized disclosure of such 
     information.
       (H) Travel and per diem.--Each member of the task force 
     shall be paid actual travel expenses, and per diem in lieu of 
     subsistence expenses when away from his or her usual place of 
     residence, in accordance with section 5703 of title 5, United 
     States Code.
       (I) Detail of personnel from the administration.--The 
     Administrator shall make available to the task force such 
     staff, information, and administrative services and 
     assistance as may reasonably be required to enable the task 
     force to carry out its responsibilities under this 
     subsection.
       (5) Authorization of appropriations.--There are hereby 
     authorized to be appropriated such sums as may be necessary 
     to carry out the provisions of this subsection.
       (c) Report by Secretary to Congress.--
       (1) Consideration of task force's preliminary report.--
     Within 30 days after receiving the preliminary report of the 
     task force under subsection (b), the Secretary, in 
     consultation with the Secretary of the Treasury, shall 
     furnish comments on that report to the task force.
       (2) Secretary's report to congress.--Within 30 days after 
     receiving the final report of the task force and in no event 
     more than 1 year after the date of enactment of this Act, the 
     Secretary, after consulting the Secretary of the Treasury, 
     shall submit a report, based upon the final report of the 
     task force, containing the Secretary's recommendations for 
     funding the needs of the aviation system through the year 
     2002 to the Committee on Commerce, Science, and 
     Transportation and the Committee on Finance of the Senate and 
     the Committee on Transportation and Infrastructure and the 
     Committee on Ways amd Means of the House of Representatives.
       (3) Contents.--The Secretary shall include in his report to 
     the Congress under paragraph (2)--
       (A) a copy of the final report of the task force; and
       (B) a draft bill containing the changes in law necessary to 
     implement the Secretary's recommendations.
       (4) Publication.--The Secretary shall cause a copy of the 
     reports to be printed in the Federal Register upon their 
     submission to Congress.
       (d) GAO Audit of Cost Allocation.--The Comptroller General 
     shall conduct an assessment of the manner in which costs for 
     air traffic control services are allocated between the 
     Administration and the Department of Defense. The Comptroller 
     General shall report the results of the assessment, together 
     with any recommendations the Comptroller General may have for 
     reallocation of costs and for opportunities to increase the 
     efficiency of air traffic control services provided by the 
     Administration and by the Department of Defense, to the task 
     force, the Administrator, the Secretary of Defense, the 
     Committee on Transportation and Infrastructure of the House 
     of Representatives, and the Committee on Commerce, Science, 
     and Transportation of the Senate not later than 120 days 
     after the date of enactment of this Act.

     SEC. 675. PROCEDURE FOR CONSIDERATION OF CERTAIN FUNDING 
                   PROPOSALS.

       (a) In General.--Chapter 481 is amended by adding at the 
     end thereof the following:

     ``Sec. 48111. Funding proposals

       ``(a) Introduction and Referral.--Within 15 days (not 
     counting any day on which either House is not in session) 
     after a funding proposal is submitted to the House of 
     Representatives and the Senate by the Secretary of 
     Transportation under section 674(c) of the Air Traffic 
     Management System Performance Improvement Act of 1996, an 
     implementing bill with respect to such funding proposed shall 
     be introduced in the House by the Majority Leader of the 
     House, for himself and the Minority Leader of the House, or 
     by Members of the House designated by the Majority Leader and 
     Minority Leader of the House; and shall be introduced in the 
     Senate by the Majority Leader of the Senate, for himself and 
     the Minority Leader of the Senate, or by Members of the 
     Senate designated by the Majority Leader and Minority Leader 
     of the Senate. The implementing bill shall be referred by the 
     Presiding Officers of the respective Houses to the 
     appropriate committee, or, in the case of a bill containing 
     provisions within the jurisdiction of two or more committees, 
     jointly to such committees for consideration of those 
     provisions within their respective jurisdictions.
       ``(b) Consideration in the House of Representatives.--
       ``(1) Referral and reporting.--Any committee of the House 
     of Representatives to which an implementing bill is referred 
     shall report it, with or without recommendation, not later 
     than the 45th calendar day of session after the date of its 
     introduction. If any committee fails to report the bill 
     within that period, it is in order to move that the House 
     discharge the committee from further consideration of the 
     bill. A motion to discharge may be made only by a Member 
     favoring the bill (but only at a time or place designated 
     by the Speaker in the legislative schedule of the day 
     after the calendar day on which the Member offering the 
     motion announces to the House his intention to do so and 
     the form of the motion). The motion is highly privileged. 
     Debate thereon shall be limited to not more than one hour, 
     the time to be divided in the House equally between a 
     proponent and an opponent. The previous question shall be 
     considered as ordered on the motion to its adoption 
     without intervening motion. A motion to reconsider the 
     vote by which the motion is agreed to or disagreed to 
     shall not be in order.
       ``(2) Consideration of implementing bill.--After an 
     implementing bill is reported or a committee has been 
     discharged from further consideration, it is in order to move 
     that the House resolve into the Committee of the Whole House 
     on the State of the Union for consideration of the bill. If 
     reported and the report has been available for at least one 
     calendar day, all points of order against the bill and 
     against consideration of the bill are waived. If discharged, 
     all points of order against the bill and against 
     consideration of the bill are waived. The motion is highly 
     privileged. A motion to reconsider the vote by which the 
     motion is agreed to or disagreed to shall not be in order. 
     During consideration of the bill in the Committee of the 
     Whole, the first reading of the bill shall be dispensed with. 
     General debate shall proceed, shall be confined to the bill, 
     and shall not exceed one hour equally divided and controlled 
     by a proponent and an opponent of the bill. The bill shall be 
     considered as read for amendment under the five-minute rule. 
     Only one motion to rise shall be in order, except

[[Page S10704]]

     if offered by the manager. No amendment to the bill is in 
     order except an amendment that is relevant to aviation 
     funding and the Federal Aviation Administration. 
     Consideration of the bill for amendment shall not exceed one 
     hour excluding time for recorded votes and quorum calls. No 
     amendment shall be subject to further amendment, except pro 
     forma amendments for the purposes of debate only. At the 
     conclusion of the consideration of the bill for amendment, 
     the Committee shall rise and report the bill to the House 
     with such amendments as may have been adopted. The previous 
     question shall be considered as ordered on the bill and 
     amendments thereto to final passage without intervening 
     motion. A motion to reconsider the vote on passage of the 
     bill shall not be in order.
       ``(3) Appeals of rulings.--Appeals from decision of the 
     Chair regarding application of the rules of the House of 
     Representatives to the procedure relating to an implementing 
     bill shall be decided without debate.
       ``(4) Consideration of more than one implementing bill.--It 
     shall not be in order to consider under this subsection more 
     than one implementing bill under this section, except for 
     consideration of a similar Senate bill (unless the House has 
     already rejected an implementing bill) or more than one 
     motion to discharge described in paragraph (1) with respect 
     to an implementing bill.
       ``(c) Consideration in the Senate.--
       ``(1) Referral and reporting.--An implementing bill 
     introduced in the Senate shall be referred to the appropriate 
     committee or committees. A committee to which an implementing 
     bill has been referred shall report the bill not later than 
     the 45th day of session following the date of introduction of 
     that bill. If any committee fails to report the bill within 
     that period, then it shall be in order to move to discharge 
     the committee from further consideration of the bill under 
     rule 17.4 of the Standing Rules of the Senate, and the bill 
     shall be placed on the Calendar. A motion to discharge the 
     committee from further consideration of an implementing bill 
     under this paragraph shall not be debatable. It shall not be 
     in order to move to reconsider the vote by which the motion 
     to discharge was adopted or rejected, although subsequent 
     motions to discharge may be made under this paragraph.
       ``(2) Implementing bill from house.--When the Senate 
     receives from the House of Representatives an implementing 
     bill, the bill shall not be referred to committee and shall 
     be placed on the Calendar.
       ``(3) Consideration of single implementing bill.--After the 
     Senate has proceeded to the consideration of an implementing 
     bill under this subsection, then no other implementing bill 
     originating in that same House shall be subject to the 
     procedures set forth in this subsection.
       ``(4) Amendments.--No amendment to the bill is in order 
     except an amendment that is relevant to aviation funding and 
     the Federal Aviation Administration. Consideration of the 
     bill for amendment shall not exceed one hour excluding time 
     for recorded votes and quorum calls. No amendment shall be 
     subject to further amendment, except for perfecting 
     amendments.
       ``(5) Motion nondebatable.--A motion to proceed to 
     consideration of an implementing bill under this subsection 
     shall not be debatable. It shall not be in order to move to 
     reconsider the vote by which the motion to proceed was 
     adopted or rejected, although subsequent motions to proceed 
     may be made under this paragraph.
       ``(6) Limit on consideration.--
       ``(A) After no more than 20 hours of consideration of an 
     implementing bill, the Senate shall proceed, without 
     intervening action or debate (except as permitted under 
     paragraph (9)), to vote on the final disposition thereof to 
     the exclusion of all amendments not then pending and to the 
     exclusion of all motions, except a motion to reconsider or 
     table.
       ``(B) The time for debate on the implementing bill shall be 
     equally divided between the Majority Leader and the Minority 
     Leader or their designees.
       ``(7) Debate of amendments.--Debate on any amendment to an 
     implementing bill shall be limited to one hour, equally 
     divided and controlled by the Senator proposing the amendment 
     and the majority manager, unless the majority manager is in 
     favor of the amendment, in which case the minority manager 
     shall be in control of the time in opposition.
       ``(8) No motion to recommit.--A motion to recommit an 
     implementing bill shall not be in order.
       ``(9) Disposition of senate bill.--If the Senate has read 
     for the third time an implementing bill that originated in 
     the Senate, then it shall be in order at any time thereafter 
     to move to proceed to the consideration of an implementing 
     bill for the same special message received from the House of 
     Representatives and placed on the Calendar pursuant to 
     paragraph (2), strike all after the enacting clause, 
     substitute the text of the Senate implementing bill, agree to 
     the Senate amendment, and vote on final disposition of the 
     House implementing bill, all without any intervening action 
     or debate.
       ``(10) Consideration of house message.--Consideration in 
     the Senate of all motions, amendments, or appeals necessary 
     to dispose of a message from the House of Representatives on 
     an implementing bill shall be limited to not more than 4 
     hours. Debate on each motion or amendment shall be limited to 
     30 minutes. Debate on any appeal or point of order that is 
     submitted in connection with the disposition of the House 
     message shall be limited to 20 minutes. Any time for 
     debate shall be equally divided and controlled by the 
     proponent and the majority manager, unless the majority 
     manager is a proponent of the motion, amendment, appeal, 
     or point of order, in which case the minority manager 
     shall be in control of the time in opposition.
       ``(d) Consideration in Conference.--
       ``(1) Convening of conference.--In the case of disagreement 
     between the two Houses of Congress with respect to an 
     implementing bill passed by both Houses, conferees should be 
     promptly appointed and a conference promptly convened, if 
     necessary.
       ``(2) House consideration.--Notwithstanding any other rule 
     of the House of Representatives, it shall be in order to 
     consider the report of a committee of conference relating to 
     an implementing bill if such report has been available for 
     one calendar day (excluding Saturdays, Sundays, and legal 
     holidays, unless the House is in session on such a day) and 
     the accompanying statement shall have been filed in the 
     House.
       ``(3) Senate consideration.--Consideration in the Senate of 
     the conference report and any amendments in disagreement on 
     an implementing bill shall be limited to not more than 4 
     hours equally divided and controlled by the Majority Leader 
     and the Minority Leader or their designees. A motion to 
     recommit the conference report is not in order.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Implementing bill.--The term `implementing bill' 
     means only a bill of either House of Congress which is 
     introduced as provided in subsection (a) with respect to one 
     or more Federal Aviation Administration funding proposals 
     which contain changes in existing laws or new statutory 
     authority required to implement such funding proposal or 
     proposals.
       ``(2) Funding proposal.--The term `funding proposal' means 
     a proposal to provide interim or permanent funding for 
     operations of the Federal Aviation Administration.
       ``(f) Rules of House of Representatives and Senate.--This 
     section is enacted by the Congress--
       ``(1) as an exercise of the rulemaking power of the House 
     of Representatives and the Senate, respectively, and as such 
     they are deemed a part of the rules of each House, 
     respectively, but applicable only with respect to the 
     procedure to be followed in that House in the case of 
     implementing bills described in subsection (d); and they 
     supersede other rules only to the extent that they are 
     inconsistent therewith; and
       ``(2) with full recognition of the constitutional right of 
     either House to change the rules (so far as relating to the 
     procedure of that House) at any time, in the same manner and 
     to the same extent as in the case of any other rule of that 
     House.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     481 is amended by adding at the end thereof the following:

``48111. Funding proposals.''.

     SEC. 676. ADMINISTRATIVE PROVISIONS.

       (a) In General.--Chapter 453, as amended by section 654 of 
     this title, is further amended by--
       (1) redesignating section 45303 as section 45304; and
       (2) by inserting after section 45302 the following:

     ``Sec. 45303. Administrative provisions

       ``(a) In General.--
       ``(1) Fees payable to administrator.--All fees imposed and 
     amounts collected under this chapter for services performed, 
     or materials furnished, by the Federal Aviation 
     Administration (hereafter in this section referred to as 
     `Administration') are payable to the Administrator.
       ``(2) Refunds.--The Administrator may refund any fee paid 
     by mistake or any amount paid in excess of that required.
       ``(3) Receipts credited to account.--Notwithstanding 
     section 3302 of title 31 all fees and amounts collected by 
     the Administration, except insurance premiums and other fees 
     charged for the provision of insurance and deposited in the 
     Aviation Insurance Revolving Fund and interest earned on 
     investments of such Fund, and except amounts which on the 
     date of enactment of the Air Traffic Management System 
     Performance Improvement Act of 1996 are required to be 
     credited to the general fund of the Treasury (whether imposed 
     under this section or not)--
       ``(A) shall be credited to a separate account established 
     in the Treasury and made available for Administration 
     activities as offsetting collections;
       ``(B) shall be available immediately for expenditure but 
     only for congressionally authorized and intended purposes; 
     and
       ``(C) shall remain available until expended.
       ``(4) Annual budget report by administrator.--The 
     Administrator shall, on the same day each year as the 
     President submits the annual budget to the Congress, provide 
     to the Committee on Commerce, Science, and Transportation of 
     the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives--
       ``(A) a list of fee collections by the Administration 
     during the preceding fiscal year;
       ``(B) a list of activities by the Administration during the 
     preceding fiscal year that were supported by fee expenditures 
     and appropriations;
       ``(C) budget plans for significant programs, projects, and 
     activities of the Administration, including out-year funding 
     estimates;
       ``(D) any proposed disposition of surplus fees by the 
     Administration; and

[[Page S10705]]

       ``(E) such other information as those committees consider 
     necessary.
       ``(5) Development of cost accounting system.--The 
     Administration shall develop a cost accounting system that 
     adequately and accurately reflects the investments, operating 
     and overhead costs, revenues, and other financial measurement 
     and reporting aspects of its operations.
       ``(6) Compensation to carriers for acting as collection 
     agents.--The Administration shall prescribe regulations to 
     ensure that any air carrier required, pursuant to the Air 
     Traffic Management System Performance Improvement Act of 1996 
     or any amendments made by that Act, to collect a fee imposed 
     on another party by the Administrator may collect from such 
     other party an additional uniform amount that the 
     Administrator determines reflects the necessary and 
     reasonable expenses (net of interest accruing to the carrier 
     after collection and before remittance) incurred in 
     collecting and handling the fee.
       ``(7) Cost reduction and efficiency report.--Prior to the 
     submission of any proposal for establishment, implementation, 
     or expansion of any fees or taxes imposed on the aviation 
     industry, the Administrator shall prepare a report for 
     submission to the Congress which includes--
       ``(A) a justification of the need for the proposed fees or 
     taxes;
       ``(B) a statement of steps taken by the Administrator to 
     reduce costs and improve efficiency within the 
     Administration;
       ``(C) an analysis of the impact of any fee or tax increase 
     on each sector of the aviation transportation industry; and
       ``(D) a comparative analysis of any decrease in tax amounts 
     equal to the receipts from which are credited to the Airport 
     and Airway Trust Fund established under section 9502 of the 
     Internal Revenue Code of 1986.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     453 is amended by striking the item relating to section 45303 
     and inserting the following:

``45303. Administrative provisions.
``45304. Maximum fees for private person services.''.

     SEC. 677. ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY TRUST 
                   FUND ACTIVITIES.

       (a) In General.--Part C of subtitle VII is amended by 
     adding at the end the following new chapter:

  ``CHAPTER 482--ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY TRUST 
                               FACILITIES

``Sec.
``48201. Advance appropriations.

     ``Sec. 48201. Advance appropriations

       ``(a) Multiyear Authorizations.--Beginning with fiscal year 
     1998, any authorization of appropriations for an activity for 
     which amounts are to be appropriated from the Airport and 
     Airway Trust Fund established under section 9502 of the 
     Internal Revenue Code of 1986 shall provide funds for a 
     period of not less than 3 fiscal years unless the activity 
     for which appropriations are authorized is to be concluded 
     before the end of that period.
       ``(b) Multiyear Appropriations.--Beginning with fiscal year 
     1998, amounts appropriated from the Airport and Airway Trust 
     Fund shall be appropriated for periods of 3 fiscal years 
     rather than annually.''.
       (c) Conforming Amendment.--The analysis for subtitle VIII 
     is amended by adding at the end the following new item:

``482. Advance appropriations for airport and airway trust 
  facilities..................................................48201.''.

     SEC. 678. RURAL AIR SERVICE SURVIVAL ACT.

       (a) Short Title.--This section may be cited as the ``Rural 
     Air Service Survival Act''.
       (b) Findings.--The Congress finds that--
       (1) air service in rural areas is essential to a national 
     transportation network;
       (2) the rural air service infrastructure supports the safe 
     operation of all air travel;
       (3) rural air service creates economic benefits for all air 
     carriers by making the national aviation system available to 
     passengers from rural areas;
       (4) rural air service has suffered since deregulation;
       (5) the essential air service program under the Department 
     of Transportation--
       (A) provides essential airline access to rural and isolated 
     rural communities throughout the Nation;
       (B) is necessary for the economic growth and development of 
     rural communities;
       (C) is a critical component of the national transportation 
     system of the United States; and
       (D) has endured serious funding cuts in recent years; and
       (6) a reliable source of funding must be established to 
     maintain air service in rural areas and the essential air 
     service program.
       (c) Essential Air Service Authorization.--Section 41742 is 
     amended to read as follows:

     ``Sec. 41742. Essential air service authorization

       ``(a) In General.--Out of the amounts received by the 
     Administration credited to the account established under 
     section 45303(a)(3) or otherwise provided to the 
     Administration, the sum of $50,000,000 is authorized and 
     shall be made available immediately for obligation and 
     expenditure to carry out the essential air service program 
     under this subchapter for each fiscal year.
       ``(b) Funding for Small Community Air Service.--
     Notwithstanding any other provision of law, moneys credited 
     to the account established under section 45303(a), including 
     the funds derived from fees imposed under the authority 
     contained in section 45301(a), shall be used to carry out the 
     essential air service program under this subchapter. 
     Notwithstanding section 47114(g) of this title, any amounts 
     from those fees that are not obligated or expended at the end 
     of the fiscal year for the purpose of funding the essential 
     air service program under this subchapter shall be made 
     available to the Administration for use in improving rural 
     air safety under subchapter I of chapter 471 of this title 
     and shall be used exclusively for projects at rural airports 
     under this subchapter.''.
       (d) Conforming Amendment.--The chapter analysis for chapter 
     417 is amended by striking the item relating to section 41742 
     and inserting the following:

``41742. Essential air service authorization.''.

       (e) Secretary May Require Matching Local Funds.--Section 
     41737 is amended by adding at the end thereof the following:
       ``(e) Matching Funds.--No earlier than 2 years after the 
     effective date of section 679 of the Air Traffic Management 
     System Performance Improvement Act of 1996, the Secretary may 
     require an eligible agency, as defined in section 40117(a)(2) 
     of this title, to provide matching funds of up to 10 percent 
     for any payments it receives under this subchapter.''.
       (f) Transfer of Essential Air Service Program to FAA.--The 
     responsibility for administration of subchapter II of chapter 
     417 is transferred from the Secretary of Transportation to 
     the Administrator.

                        TITLE VII--PILOT RECORDS

     SEC. 701. SHORT TITLE.

       This title may be cited as the ``Pilot Records Improvement 
     Act of 1996''.

     SEC. 702. EMPLOYMENT INVESTIGATIONS OF PILOT APPLICANTS.

       (a) In General.--Section 44936 is amended by adding at the 
     end the following new subsection:
       ``(f) Records of Employment of Pilot Applicants.--
       ``(1) In general.--Before hiring an individual as a pilot, 
     an air carrier shall request and receive the following 
     information:
       ``(A) FAA records.--From the Administrator of the Federal 
     Aviation Administration (hereafter in this subsection 
     referred to as the `Administrator'), records pertaining to 
     the individual that are maintained by the Administrator 
     concerning--
       ``(i) current airman certificates (including airman medical 
     certificates) and associated type ratings, including any 
     limitations to those certificates and ratings; and
       ``(ii) summaries of legal enforcement actions resulting in 
     a finding by the Administrator of a violation of this title 
     or a regulation prescribed or order issued under this title 
     that was not subsequently overturned.
       ``(B) Air carrier and other records.--From any air carrier 
     or other person that has employed the individual at any time 
     during the 5-year period preceding the date of the employment 
     application of the individual, or from the trustee in 
     bankruptcy for such air carrier or person--
       ``(i) records pertaining to the individual that are 
     maintained by an air carrier under regulations set forth in--
       ``(I) section 121.683 of title 14, Code of Federal 
     Regulations;
       ``(II) paragraph (A) of section VI, appendix I, part 121 of 
     such title;
       ``(III) paragraph (A) of section IV, appendix J, part 121 
     of such title;
       ``(IV) section 125.401 of such title; and
       ``(V) section 135.63(a)(4) of such title; and
       ``(ii) other records pertaining to the individual that are 
     maintained by the air carrier or person concerning--
       ``(I) the training, qualifications, proficiency, or 
     professional competence of the individual, including comments 
     and evaluations made by a check airman designated in 
     accordance with section 121.411, 125.295, or 135.337 of such 
     title;
       ``(II) any disciplinary action taken with respect to the 
     individual that was not subsequently overturned; and
       ``(III) any release from employment or resignation, 
     termination, or disqualification with respect to employment.
       ``(C) National driver register records.--In accordance with 
     section 30305(b)(7), from the chief driver licensing official 
     of a State, information concerning the motor vehicle driving 
     record of the individual.
       ``(2) Written consent; release from liability.--An air 
     carrier making a request for records under paragraph (1)--
       ``(A) shall be required to obtain written consent to the 
     release of those records from the individual that is the 
     subject of the records requested; and
       ``(B) may, notwithstanding any other provision of law or 
     agreement to the contrary, require the individual who is the 
     subject of the records to request to execute a release from 
     liability for any claim arising from the furnishing of such 
     records to or the use of such records by such air carrier 
     (other than a claim arising from furnishing information known 
     to be false and maintained in violation of a criminal 
     statute).
       ``(3) 5-year reporting period.--A person shall not furnish 
     a record in response to a request made under paragraph (1) if 
     the record was entered more than 5 years before the date of 
     the request, unless the information concerns a revocation or 
     suspension of an airman certificate or motor vehicle license 
     that is in effect on the date of the request.
       ``(4) Requirement to maintain records.--The Administrator 
     shall maintain pilot records described in paragraph (1)(A) 
     for a period of at least 5 years.
       ``(5) Recript of consent; provision of information.--A 
     person shall not furnish a

[[Page S10706]]

     record in response to a request made under paragraph (1) 
     without first obtaining a copy of the written consent of the 
     individual who is the subject of the records requested. A 
     person who receives a request for records under this 
     paragraph shall furnish a copy of all of such requested 
     records maintained by the person not later than 30 days after 
     receiving the request.
       ``(6) Right to receive notice and copy of any record 
     furnished.--A person who receives a request for records under 
     paragraph (1) shall provide to the individual who is the 
     subject of the records--
       ``(A) written notice of the request and of the right of 
     that individual to receive a copy of such records; and
       ``(B) a copy of such records, if requested by the 
     individual.
       ``(7) Reasonable charges for processing requests and 
     furnishing copies.--A person who receives a request under 
     paragraph (1) or (6) may establish a reasonable charge for 
     the cost of processing the request and furnishing copies of 
     the requested records.
       ``(8) Standard forms.--The Administrator shall promulgate--
       ``(A) standard forms that may be used by an air carrier to 
     request records under paragraph (1); and
       ``(B) standard forms that may be used by an air carrier 
     to--
       ``(i) obtain the written consent of the individual who is 
     the subject of a request under paragraph (1); and
       ``(ii) inform the individual of--
       ``(I) the request; and
       ``(II) the individual right of that individual to receive a 
     copy of any records furnished in response to the request.
       ``(9) Right to correct inaccuracies.--An air carrier that 
     maintains or requests and receives the records of an 
     individual under paragraph (1) shall provide the individual 
     with a reasonable opportunity to submit written comments to 
     correct any inaccuracies contained in the records before 
     making a final hiring decision with respect to the 
     individual.
       ``(10) Right of pilot to review certain records.--
     Notwithstanding any other provision of law or agreement, an 
     air carrier shall, upon written request from a pilot employed 
     by such carrier, make available, within a reasonable time of 
     the request, to the pilot for review, any and all employment 
     records referred to in paragraph (1)(B) (i) or (ii) 
     pertaining to the employment of the pilot.
       ``(11) Privacy protections.--An air carrier that receives 
     the records of an individual under paragraph (1) may use such 
     records only to assess the qualifications of the individual 
     in deciding whether or not to hire the individual as a pilot. 
     The air carrier shall take such actions as may be necessary 
     to protect the privacy of the pilot and the confidentiality 
     of the records, including ensuring that information contained 
     in the records is not divulged to any individual that is not 
     directly involved in the hiring decision.
       ``(12) Periodic review.--Not later than 18 months after the 
     date of enactment of the Pilot Records Improvement Act of 
     1996, and at least once every 3 years thereafter, the 
     Administrator shall transmit to the Congress a statement that 
     contains, taking into account recent developments in the 
     aviation industry--
       ``(A) recommendations by the Administrator concerning 
     proposed changes to Federal Aviation Administration records, 
     air carrier records, and other records required to be 
     furnished under subparagraphs (A) and (B) of paragraph (1); 
     or
       ``(B) reasons why the Administrator does not recommend any 
     proposed changes to the records referred to in subparagraph 
     (A).
       ``(13) Regulations.--The Administrator may prescribe such 
     regulations as may be necessary--
       ``(A) to protect--
       ``(i) the personal privacy of any individual whose records 
     are requested under paragraph (1); and
       ``(ii) the confidentiality of those records;
       ``(B) to preclude the further dissemination of records 
     received under paragraph (1) by the person who requested 
     those records; and
       ``(C) to ensure prompt compliance with any request made 
     under paragraph (1).
       ``(g) Limitation on Liability; Preemption of State Law.--
       ``(1) Limitation on liability.--No action or proceeding may 
     be brought by or on behalf of an individual who has applied 
     for or is seeking a position with an air carrier as a pilot 
     and who has signed a release from liability, as provided for 
     under paragraph (2), against--
       ``(A) the air carrier requesting the records of that 
     individual under subsection (a)(1);
       ``(B) a person who has complied with such request; or
       ``(C) an agent or employee of a person described in 
     subparagraph (A) or (B);

     in the nature of an action for defamation, invasion of 
     privacy, negligence, interference with contract, or 
     otherwise, or under any Federal or State law with respect to 
     the furnishing or use of such records in accordance with 
     subsection (a).
       ``(2) Preemption.--No State or political subdivision 
     thereof may enact, prescribe, issue, continue in effect, or 
     enforce any law (including any regulation, standard, or other 
     provision having the force and effect of law) that prohibits, 
     penalizes, or imposes liability for furnishing or using 
     records in accordance with subsection (a).
       ``(3) Provision of knowingly false information.--Paragraph 
     (1) and (2) shall not apply with respect to a person who 
     furnishes information in response to a request made under 
     subsection (f)(1), that--
       ``(A) the person knows is false; and
       ``(B) was maintained in violation of a criminal statute of 
     the United States.''.
       (b) Conforming Amendment.--Section 30305(b) is amended--
       (1) by redesignating paragraph (7) as paragraph (8); and
       (2) by inserting after paragraph (6) the following;
       ``(7) An individual who is seeking employment by an air 
     carrier as a pilot may request the chief driver licensing 
     official of a State to provide information about the 
     individual under paragraph (2) to the prospective employer of 
     the individual or to the Secretary of Transportation. 
     Information may not be obtained from the National Driver 
     Register under this subsection if the information was entered 
     in the Register more than 5 years before the request unless 
     the information is about a revocation or suspension still in 
     effect on the date of the request.''.
       (c) Applicability.--The amendments made by this section 
     shall apply to any air carrier hiring an individual as a 
     pilot whose application was first received by the carrier on 
     or after the 120th day after the date of enactment of this 
     Act.

     SEC. 703. STUDY OF MINIMUM STANDARDS FOR PILOT 
                   QUALIFICATIONS.

       The Administrator shall appoint a task force consisting of 
     appropriate representatives of the aviation industry to 
     conduct a study directed toward the development of--
       (1) standards and criteria for preemployment screening 
     tests measuring the psychomotor coordination, general 
     intellectual capacity, instrument and mechanical 
     comprehension, and physical and mental fitness of an 
     applicant for employment as a pilot by an air carrier; and
       (2) standards and criteria for pilot training facilities to 
     be licensed by the Administrator and which will assure that 
     pilots trained at such facilities meet the preemployment 
     screening standards and criteria described in paragraph (1).

                TITLE VIII-ABOLITION OF BOARD OF REVIEW

     SEC. 801. ABOLITION OF BOARD OF REVIEW AND RELATED AUTHORITY.

       (a) Abolition of Board of Review.--Section 6007 of the 
     Metropolitan Washington Airports Act of 1986 (formerly 49 
     U.S.C. App. 2456) is amended--
       (1) by striking subsections (f) and (h);
       (2) by redesignating subsection (g) as subsection (f); and
       (3) by redesignating subsection (i) as subsection (g).
       (b) Conforming Amendments.--
       (1) Relationship to and effect of other laws.--Section 
     6009(b) of the Metropolitan Washington Airports Act of 1986 
     (formerly 49 U.S.C. App. 2458(b)) is amended by striking ``or 
     by reason of the authority'' and all that follows through the 
     end of the subsection and inserting a period.
       (2) Separability.--Section 6011 of the Metropolitan 
     Washington Airports Act of 1986 (formerly 49 U.S.C. App. 
     2460) is amended by striking ``Except as provided in section 
     6007(h), if'' and inserting ``If''.
       (c) Protection of Certain Actions.--Any action taken by the 
     Airports Authority and submitted to the Board of Review 
     pursuant to section 6007(f)(4) of the Metropolitan Washington 
     Airports Act of 1986 before April 1, 1995, shall remain in 
     effect and shall not be set aside solely by reason of a 
     judicial order invalidating certain functions of the Board.

     SEC. 802. SENSE OF THE SENATE.

       It is the sense of the Senate that the Airports Authority--
       (1) should not provide any reserved parking areas free of 
     charge to Members of Congress, other Government officials, or 
     diplomats at Washington National Airport or Washington Dulles 
     International Airport; and
       (2) should establish a parking policy for such airports 
     that provides equal access to the public, and does not 
     provide preferential parking privileges to Members of 
     Congress, other Government officials, or diplomats.

     SEC. 803. CONFORMING AMENDMENTS IN OTHER LAW.

       Any reference in any Federal law, Executive order, rule, 
     regulation, or delegation of authority to the Board of Review 
     or the provisions of law repealed under this title is hereby 
     repealed.

     SEC. 804. DEFINITIONS.

       For purposes of this title--
       (1) the terms ``Airports Authority'', ``Washington National 
     Airport'', and ``Washington Dulles International Airport'' 
     have the same meanings as in section 6004 of the Metropolitan 
     Washington Airports Act of 1986; and
       (2) the term ``Board of Review'' means the Board of Review 
     of the Airports Authority.

     SEC. 805. INCREASE IN NUMBER OF PRESIDENTIALLY APPOINTED 
                   MEMBERS OF BOARD.

       (a) In General.--Section 6007(e) of the Metropolitan 
     Washington Airports Act of 1986 (formerly 49 U.S.C. 2456(e)) 
     is amended--
       (1) by striking ``11 members,'' in paragraph (1) and 
     inserting ``13 members,'';
       (2) by striking ``one member'' in paragraph (1)(D) and 
     inserting ``3 members''; and
       (3) by striking ``Seven'' in paragraph (5) and inserting 
     ``Eight''.
       (b) Staggering Terms for Presidential Appointees.--Of the 
     members first appointed by the President after the date of 
     enactment of this Act--
       (1) one shall be appointed for a term that expires 
     simultaneously with the term of the

[[Page S10707]]

     member of the Metropolitan Washington Airports Authority 
     board of directors serving on that date (or, if there is a 
     vacancy in that office, the member appointed to fill the 
     existing vacancy and the member to whom this paragraph 
     applies shall be appointed for 2 years);
       (2) one shall be appointed for a term ending 2 years after 
     the term of the member (or members) to whom paragraph (1) 
     applies expires; and
       (3) one shall be appointed for a term ending 4 years after 
     the term of the member (or members) to whom paragraph (1) 
     applies expires.

     SEC. 806. RECONSTITUTED BOARD TO FUNCTION WITHOUT 
                   INTERRUPTION.

       Notwithstanding any provision of State law, including those 
     provisions establishing, providing for the establishment of, 
     or recognizing the Metropolitan Washington Airports 
     Authority, and based upon the Federal interest in the 
     continued functions of the Metropolitan Washington Airports 
     (as defined in section 6004(4) of the Metropolitan Washington 
     Airports Authority Act of 1986 (formerly 49 U.S.C. 2451(4)), 
     the board of directors of such Authority, including any 
     members appointed under the amendments made by section 805, 
     shall continue to meet and act after the date of enactment of 
     this Act until such time as necessary conforming changes in 
     State law are made in the same manner as if those conforming 
     changes had been enacted on the date of enactment of this 
     Act.

     SEC. 807. OPERATIONAL SLOTS AT NATIONAL AIRPORT.

       Nothing in this title shall affect the number or 
     distribution of operational slots at National Airport.

     SEC. 808. AIRPORTS AUTHORITY SUPPORT OF BOARD.

       Section 6005 of the Metropolitan Washington Airports 
     Authority Act of 1986 (formerly 49 U.S.C. 2454) is amended by 
     adding at the end thereof the following:
       ``(f) Federal Agency Oversight.--The Airports Authority 
     shall not be required--
       ``(1) to pay any person;
       ``(2) to provide office space or administrative support; or
       ``(3) to reimburse the Secretary of Transportation for 
     expenses incurred,

     for carrying out any Federal agency oversight 
     responsibilities under this Act. Nothing in this subsection 
     precludes the Airport Authority from providing services or 
     expenses to any member of the Board of Directors.''.

                  TITLE IX--AIRPORT REVENUE PROTECTION

     SEC. 901. SHORT TITLE.

       This title may be cited as the ``Airport Revenue Protection 
     Act of 1996''.

     SEC. 902. FINDINGS; PURPOSE.

       (a) In General.--The Congress finds that--
       (1) section 47107 of title 49, United States Code, 
     prohibits the diversion of certain revenue generated by a 
     public airport as a condition of receiving a project grant;
       (2) a grant recipient that uses airport revenue for 
     purposes that are not airport related in a manner 
     inconsistent with chapter 471 of title 49, United States 
     Code, illegally diverts airport revenues;
       (3) any diversion of airport revenues in violation of the 
     condition referred to in paragraph (1) undermines the 
     interest of the United States in promoting a strong national 
     air transportation system that is responsive to the needs of 
     airport users;
       (4) the Secretary and the Administrator have not enforced 
     airport revenue diversion rules adequately and must have 
     additional regulatory tools to increase enforcement efforts; 
     and
       (5) sponsors who have been found to have illegally diverted 
     airport revenues--
       (A) have not reimbursed or made restitution to airports in 
     a timely manner; and
       (B) must be encouraged to do so.
       (b) Purpose.--The purpose of this title is to ensure that 
     airport users are not burdened with hidden taxation for 
     unrelated municipal services and activities by--
       (1) eliminating the ability of any State or political 
     subdivision thereof that is a recipient of a project grant to 
     divert airport revenues for purposes that are not related to 
     an airport, in violation of section 47107 of title 49, United 
     States Code;
       (2) imposing financial reporting requirements that are 
     designed to identify instances of illegal diversions referred 
     to in paragraph (1);
       (3) establishing a statute of limitations for airport 
     revenue diversion actions;
       (4) clarifying limitations on revenue diversion that are 
     permitted under chapter 471 of title 49, United States Code; 
     and
       (5) establishing clear penalties and enforcement mechanisms 
     for identifying and prosecuting airport revenue diversion.

     SEC. 903. DEFINITIONS.

       For purposes of this title, the following definitions shall 
     apply:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Federal Aviation Administration.
       (2) Airport.--The term ``airport'' has the meaning provided 
     that term in section 47102(2) of title 49, United States 
     Code.
       (3) Project grant.--The term ``project grant'' has the 
     meaning provided that term in section 47102(14) of title 49, 
     United States Code.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.
       (5) Sponsor.--The term ``sponsor'' has the meaning provided 
     that term in section 47102(19) of title 49, United States 
     Code.

     SEC. 904. RESTRICTION ON USE OF AIRPORT REVENUES.

       (a) In General.--Subchapter I of chapter 471, as amended by 
     section 201(a) of this Act, is further amended by adding at 
     the end of subchapter I the following new section:

     ``Sec. 47133. Restriction on use of revenues

       ``(a) Prohibition.--Local taxes on aviation fuel (except 
     taxes in effect on December 30, 1987) or the revenues 
     generated by an airport that is the subject of Federal 
     assistance may not be expended for any purpose other than the 
     capital or operating costs of--
       ``(1) the airport;
       ``(2) the local airport system; or
       ``(3) any other local facility that is owned or operated by 
     the person or entity that owns or operates the airport that 
     is directly and substantially related to the air 
     transportation of passengers or property.
       ``(b) Exceptions.--Subsection (a) shall not apply if a 
     provision enacted not later than September 2, 1982, in a law 
     controlling financing by the airport owner or operator, or a 
     covenant or assurance in a debt obligation issued not later 
     than September 2, 1982, by the owner or operator, provides 
     that the revenues, including local taxes on aviation fuel at 
     public airports, from any of the facilities of the owner or 
     operator, including the airport, be used to support not only 
     the airport but also the general debt obligations or other 
     facilities of the owner or operator.
       ``(c) Rule of Construction.--Nothing in this section may be 
     construed to prevent the use of a State tax on aviation fuel 
     to support a State aviation program or the use of airport 
     revenue on or off the airport for a noise mitigation 
     purpose.''.
       (b) Conforming Amendment.--The chapter analysis for 
     subchapter I of chapter 471 is amended by adding at the end 
     the following new item:

``47133. Restriction on use of revenues.''.

     SEC. 905. REGULATIONS; AUDITS AND ACCOUNTABILITY.

       (a) In General.--Section 47107 is amended by adding at the 
     end the following new subsections:
       ``(m) Audit Certification.--
       ``(1) In general.--The Secretary of Transportation 
     (hereafter in this section referred to as the `Secretary'), 
     acting through the Administrator of the Federal Aviation 
     Administration (hereafter in this section referred to as the 
     `Administrator'), shall promulgate regulations that require a 
     recipient of a project grant (or any other recipient of 
     Federal financial assistance that is provided for an airport) 
     to include as part of an annual audit conducted under 
     sections 7501 through 7505 of title 31, a review and opinion 
     of the review concerning the funding activities with respect 
     to an airport that is the subject of the project grant (or 
     other Federal financial assistance) and the sponsors, owners, 
     or operators (or other recipients) involved.
       ``(2) Content of review.--A review conducted under 
     paragraph (1) shall provide reasonable assurances that funds 
     paid or transferred to sponsors are paid or transferred in a 
     manner consistent with the applicable requirements of this 
     chapter and any other applicable provision of law (including 
     regulations promulgated by the Secretary or the 
     Administrator).
       ``(3) Requirements for audit report.--The report submitted 
     to the Secretary under this subsection shall include a 
     specific determination and opinion regarding the 
     appropriateness of the disposition of airport funds paid or 
     transferred to a sponsor.
       ``(n) Recovery of Illegally Diverted Funds.--
       ``(1) In general.--Not later than 180 days after the 
     issuance of an audit or any other report that identifies an 
     illegal diversion of airport revenues (as determined under 
     subsections (b) and (l) and section 47133), the Secretary, 
     acting through the Administrator, shall--
       ``(A) review the audit or report;
       ``(B) perform appropriate factfinding; and
       ``(C) conduct a hearing and render a final determination 
     concerning whether the illegal diversion of airport revenues 
     asserted in the audit or report occurred.
       ``(2) Notification.--Upon making such a finding, the 
     Secretary, acting through the Administrator, shall provide 
     written notification to the sponsor and the airport of--
       ``(A) the finding; and
       ``(B) the obligations of the sponsor to reimburse the 
     airport involved under this paragraph.
       ``(3) Administrative action.--The Secretary may withhold 
     any amount from funds that would otherwise be made available 
     to the sponsor, including funds that would otherwise be made 
     available to a State, municipality, or political subdivision 
     thereof (including any multimodal transportation agency or 
     transit authority of which the sponsor is a member entity) 
     as part of an appointment or grant made available pursuant 
     to this title, if the sponsor--
       ``(A) receives notification that the sponsor is required to 
     reimburse an airport; and
       ``(B) has had an opportunity to reimburse the airport, but 
     has failed to do so.
       ``(4) Civil action.--If a sponsor fails to pay an amount 
     specified under paragraph (3) during the 180-day period 
     beginning on the date of notification and the Secretary is 
     unable to withhold a sufficient amount under paragraph (3), 
     the Secretary, acting through the Administrator, may initiate 
     a civil action under which the sponsor shall be liable for 
     civil penalty in an amount equal to the illegal diversion in 
     question plus interest (as determined under subsection (o)).

[[Page S10708]]

       ``(5) Disposition of penalties.--
       ``(A) Amounts withheld.--The Secretary or the Administrator 
     shall transfer any amounts withheld under paragraph (3) to 
     the Airport and Airway Trust Fund.
       ``(B) Civil penalties.--With respect to any amount 
     collected by a court in a civil action under paragraph (4), 
     the court shall cause to be transferred to the Airport and 
     Airway Trust Fund any amount collected as a civil penalty 
     under paragraph (4).
       ``(6) Reimbursement.--The Secretary, acting through the 
     Administrator, shall, as soon as practicable after any amount 
     is collected from a sponsor under paragraph (4), cause to be 
     transferred from the Airport and Airway Trust Fund to an 
     airport affected by a diversion that is the subject of a 
     civil action under paragraph (4), reimbursement in an amount 
     equal to the amount that has been collected from the sponsors 
     under paragraph (4) (including any amount of interest 
     calculated under subsection (o)).
       ``(7) Statute of limitation.--No person may bring an action 
     for the recovery of funds illegally diverted in violation of 
     this section (as determined under subsections (b) and (l)) or 
     section 47133 after the date that is 6 years after the date 
     on which the diversion occurred.
       ``(o) Interest.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary, acting through the Administrator, shall charge a 
     minimum annual rate of interest on the amount of any illegal 
     diversion of revenues referred to in subsection (n) in an 
     amount equal to the average investment interest rate for tax 
     and loan accounts of the Department of the Treasury (as 
     determined by the Secretary of the Treasury) for the 
     applicable calendar year, rounded to the nearest whole 
     percentage point.
       ``(2) Adjustment of interest rates.--If, with respect to a 
     calendar quarter, the average investment interest rate for 
     tax and loan accounts of the Department of the Treasury 
     exceeds the average investment interest rate for the 
     immediately preceding calendar quarter, rounded to the 
     nearest whole percentage point, the Secretary of the Treasury 
     may adjust the interest rate charged under this subsection in 
     a manner that reflects that change.
       ``(3) Accrual.--Interest assessed under subsection (n) 
     shall accrue from the date of the actual illegal diversion of 
     revenues referred to in subsection (n).
       ``(4) Determination of applicable rate.--The applicable 
     rate of interest charged under paragraph (1) shall--
       ``(A) be the rate in effect on the date on which interest 
     begins to accrue under paragraph (3); and
       ``(B) remain at a rate fixed under subparagraph (A) during 
     the duration of the indebtedness.
       ``(p) Payment by Airport to Sponsor.--If, in the course of 
     an audit or other review conducted under this section, the 
     Secretary or the Administrator determines that an airport 
     owes a sponsor funds as a result of activities conducted by 
     the sponsor or expenditures by the sponsor for the benefit of 
     the airport, interest on that amount shall be determined in 
     the same manner as provided in paragraphs (1) through (4) of 
     subsection (o), except that the amount of any interest 
     assessed under this subsection shall be determined from the 
     date on which the Secretary or the Administrator makes that 
     determination.''.
       (b) Revision of Policies and Procedures; Deadlines.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary, acting through the 
     Administrator, shall revise the policies and procedures 
     established under section 47107(l) of title 49, United States 
     Code, to take into account the amendments made to that 
     section by this title.
       (2) Statute of limitations.--Section 47107(l) is amended by 
     adding at the end the following new paragraph:
       ``(5) Statute of limitations.--In addition to the statute 
     of limitations specified in subsection (n)(7), with respect 
     to project grants made under this chapter--
       ``(A) any request by a sponsor to any airport for 
     additional payments for services conducted off of the airport 
     or for reimbursement for capital contributions or operating 
     expenses shall be filed not later than 6 years after the date 
     on which the expense is incurred; and
       ``(B) any amount of airport funds that are used to make a 
     payment or reimbursement as described in subparagraph (A) 
     after the date specified in that subparagraph shall be 
     considered to be an illegal diversion of airport revenues 
     that is subject to subsection (n).''.

     SEC. 906. CONFORMING AMENDMENTS TO THE INTERNAL REVENUE CODE 
                   OF 1986.

       Section 9502 of the Internal Revenue Code of 1986 is 
     amended--
       (1) by striking ``and'' at the end of subsection (b)(3);
       (2) by striking the period at the end of subsection (b)(4) 
     and inserting ``, and''; and
       (3) by adding at the end of subsection (b) the following:
       ``(5) amounts determined by the Secretary of the Treasury 
     to be equivalent to the amounts of civil penalties collected 
     under section 47107(n) of title 49, United States Code.''; 
     and
       (4) in subsection (d), by adding at the end of subsection 
     (d) the following:
       ``(4) Transfers from the airport and airway trust fund on 
     account of certain airports.--The Secretary of the Treasury 
     may transfer from the Airport and Airway Trust Fund to the 
     Secretary of Transportation or the Administrator of the 
     Federal Aviation Administration an amount to make a payment 
     to an airport affected by a diversion that is the subject of 
     an administrative action under paragraph (3) or a civil 
     action under paragraph (4) of section 47107(n) of title 49, 
     United States Code.''.
                                 ______
                                 

                 CHAFEE (AND BAUCUS) AMENDMENT NO. 5361

  Mr. CHAFEE (for himself and Mr. Baucus) proposed an amendment to the 
bill, S. 1994, supra; as follows:

       On page 78, line 12, strike ``and aircraft engine 
     emissions,''.
       On page 78, line 19 through 24, strike all of paragraph (C) 
     and insert the following:
       (C) The Administrator, as the Administrator deems 
     appropriate, shall provide for the participation of a 
     representative of the Environmental Protection Agency on such 
     advisory committees or associated working groups that advise 
     the Administrator on matters related to the environmental 
     effects of aircraft and aircraft engines.
                                 ______
                                 

                    WARNER AMENDMENTS NOS. 5362-5363

  Mr. WARNER proposed two amendments to the bill, S. 1994, supra; as 
follows:

                           Amendment No. 5362

       On page 8, strike lines 14 through 17 and insert the 
     following:
       paragraph (D); and
       (B) by striking subparagraph (F) and inserting the 
     following:
       ``(F) for debt financing of a terminal development project 
     that, on an annual basis, has a total number of enplanements 
     that is less than or equal to 0.05 percent of the total 
     enplanements in the United States if--
       ``(i) construction for the project commenced during the 
     period beginning on November 6, 1988, and ending on November 
     4, 1990; and
       ``(ii) the eligible agency certifies that no other eligible 
     airport project that affects airport safety, security, or 
     capacity will be deferred as a result of the debt 
     financing.''.
                                                                    ____


                           Amendment No. 5363

       On page 10, line 23, strike ``(4)'' and insert ``(5)''.
       On page 11, line 4, strike ``and';''
       On page 11, between lines 4 and 5, insert the following:
       ``(4) any increase in the number of passenger boardings in 
     the preceding 12-month period at the airport at which the 
     project will be carried out, with priority consideration to 
     be given to projects at airports at which, during that 
     period, the number of passenger boardings was 20 percent or 
     greater than the number of such boardings during the 12-month 
     period preceding that period; and;''.
                                 ______
                                 

                SIMON (AND JEFFORDS) AMENDMENT NO. 5364

  Mr. SIMON (for himself and Mr. Jeffords) proposed an amendment to the 
bill, S. 1994, supra; as follows:

       At the appropriate place in the bill, insert the following 
     new section.

     SEC.   . PROVISIONS RELATING TO LIMITED SCOPE AUDIT.

       (a) In General.--Subparagraph (C) of section 103(a)(3) of 
     the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1023(a)(3)(C)) is amended by adding at the end the 
     following new clause:
       ``(ii) If an accountant is offering his opinion under this 
     section in the case of an employee pension benefit plan, the 
     accountant shall, to the extent consistent with generally 
     accepted auditing standards, rely on the work of any 
     independent public accountant of any bank or similar 
     institution or insurance carrier regulated and supervised and 
     subject to periodic investigation by a State or Federal 
     agency that holds assets or processes transactions of the 
     employee pension benefit plan.''
       (b) Conforming Amendments.--
       (1) Section 103(a)(3)(A) of such Act (29 U.S.C. 
     1023(a)(3)(A)) is amended by striking ``subparagraph (C)'' 
     and inserting ``subparagraph (C)(i)''.
       (2) Section 103(a)(3)(C) of such Act (29 U.S.C. 
     1023(a)(3)(C)) is amended by striking ``(C) The'' and 
     inserting ``(C)(i) In the case of an employee benefit plan 
     other than an employee pension benefit plan, the''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to opinions required under section 
     103(a)(3)(A) of the Employee Retirement Income Security Act 
     of 1974 for plan years beginning on or after January 1 of the 
     calendar year following the date of the enactment of this 
     Act.

                          ____________________