[Congressional Record Volume 142, Number 135 (Thursday, September 26, 1996)]
[House]
[Pages H11289-H11318]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                              {time}  1600
 CONFERENCE REPORT ON H.R. 3539, FEDERAL AVIATION AUTHORIZATION ACT OF 
                                  1996

  Mr. SHUSTER submitted the following conference report and statement 
on the bill (H.R. 3539) to amend title 49, United States Code, to 
reauthorize programs of the Federal Aviation Administration, and for 
other purposes:

                  Conference Report (H. Rept. 104-848)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     3539) to amend title 49, United States Code, to reauthorize 
     programs of the Federal Aviation Administration, and for 
     other purposes, having met, after full and free conference, 
     have agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
Sec. 2. Amendments to title 49, United States Code.
Sec. 3. Applicability.

                TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS

              Subtitle A--Reauthorization of FAA Programs

Sec. 101. Airport improvement program.
Sec. 102. Airway facilities improvement program.
Sec. 103. FAA operations.

               Subtitle B--Airport Development Financing

Sec. 121. Apportionments.
Sec. 122. Discretionary fund.
Sec. 123. Use of apportioned amounts.
Sec. 124. Designating current and former military airports.
Sec. 125. Period of applicability of amendments.

         Subtitle C--Airport Improvement Program Modifications

Sec. 141. Intermodal planning.
Sec. 142. Pavement maintenance program.
Sec. 143. Access to airports by intercity buses.
Sec. 144. Cost reimbursement for projects commenced prior to grant 
              award.
Sec. 145. Selection of projects for grants from discretionary fund.
Sec. 146. Small airport fund.
Sec. 147. State block grant program.
Sec. 148. Innovative financing techniques.
Sec. 149. Pilot program on private ownership of airports.

                          TITLE II--FAA REFORM

Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Effective date.

                     Subtitle A--General Provisions

Sec. 221. Findings.
Sec. 222. Purposes.
Sec. 223. Regulation of civilian air transportation and related 
              services by the Federal Aviation Administration and 
              Department of Transportation.
Sec. 224. Regulations.
Sec. 225. Personnel and services.
Sec. 226. Contracts.
Sec. 227. Facilities.
Sec. 228. Property.
Sec. 229. Transfers of funds from other Federal agencies.
Sec. 230. Management Advisory Council.

   Subtitle B--Federal Aviation Administration Streamlining Programs

Sec. 251. Review of acquisition management system.
Sec. 252. Air traffic control modernization reviews.
Sec. 253. Federal Aviation Administration personnel management system.
Sec. 254. Conforming amendment.

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

Sec. 271. Findings
Sec. 272. Purposes
Sec. 273. User fees for various Federal Aviation Administration 
              services.
Sec. 274. Independent assessment of FAA financial requirements; 
              establishment of National Civil Aviation Review 
              Commission.
Sec. 275. Procedure for consideration of certain funding proposals.
Sec. 276. Administrative provisions.
Sec. 277. Advance appropriations for Airport and Airway Trust Fund 
              activities.
Sec. 278. Rural Air Service Survival Act.

                      TITLE III--AVIATION SECURITY

Sec. 301. Report including proposed legislation on funding for airport 
              security.
Sec. 302. Certification of screening companies.
Sec. 303. Weapons and explosive detection study.
Sec. 304. Requirement for criminal history records checks.
Sec. 305. Interim deployment of commercially available explosive 
              detection equipment.
Sec. 306. Audit of performance of background checks for certain 
              personnel.
Sec. 307. Passenger profiling.
Sec. 308. Authority to use certain funds for airport security programs 
              and activities.
Sec. 309. Development of aviation security liaison agreement.
Sec. 310. Regular joint threat assessments.
Sec. 311. Baggage match report.
Sec. 312. Enhanced security programs.
Sec. 313. Report on air cargo.
Sec. 314. Sense of the Senate regarding acts of international 
              terrorism.

                       TITLE IV--AVIATION SAFETY

Sec. 401. Elimination of dual mandate.
Sec. 402. Protection of voluntarily submitted information.
Sec. 403. Supplemental type certificates.
Sec. 404. Certification of small airports.
Sec. 405. Authorization for State-specific safety measures.
Sec. 406. Aircraft engine standards.
Sec. 407.  Accident and safety data classification; report on effects 
              of publication and automated surveillance targeting 
              systems.

                     TITLE V--PILOT RECORD SHARING

Sec. 501. Short title.
Sec. 502. Employment investigations of pilot applicants.
Sec. 503. Studies of minimum standards for pilot qualifications and of 
              pay for training.
Sec. 504. Study of minimum flight time.

                      TITLE VI--CHILD PILOT SAFETY

Sec. 601. Short title.
Sec. 602. Child pilot safety.

                      TITLE VII--FAMILY ASSISTANCE

Sec. 701. Short title.
Sec. 702. Assistance by National Transportation Safety Board to 
              families of passengers involved in aircraft accidents.
  
Sec. 703. Air carrier plans to address needs of families of passengers 
              involved in aircraft accidents.
Sec. 704. Establishment of task force.
Sec. 705. Limitation on statutory construction.

                 TITLE VIII--AIRPORT REVENUE PROTECTION

Sec. 801. Short title.
Sec. 802. Findings; purpose.
Sec. 803. Definitions.
  
Sec. 804. Restriction on use of airport revenues.
Sec. 805. Regulations; audits and accountability.
Sec. 806. Conforming amendments to the Internal Revenue Code of 1986.

               TITLE IX--METROPOLITAN WASHINGTON AIRPORTS

Sec. 901. Short title.
Sec. 902. Use of leased property.
Sec. 903. Board of Directors.
Sec. 904. Termination of Board of Review.

[[Page H11290]]

  
Sec. 905. Limitations.
Sec. 906. Use of Dulles Airport Access Highway.
Sec. 907. Effect of judicial order.
Sec. 908. Amendment of lease.
Sec. 909. Sense of the Senate.

    TITLE X--EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURES

Sec. 1001. Extension of Airport and Airway Trust Fund expenditures.

          TITLE XI--FAA RESEARCH, ENGINEERING, AND DEVELOPMENT

Sec. 1101. Short title.
Sec. 1102. Authorization of appropriations.
  
Sec. 1103. Research priorities.
Sec. 1104. Research advisory committee.
Sec. 1105. National aviation research plan.

                  TITLE XII--MISCELLANEOUS PROVISIONS

Sec. 1201. Purchase of housing units.
Sec. 1202. Clarification of passenger facility revenues as constituting 
              trust funds.
Sec. 1203. Authority to close airport located near closed or realigned 
              military base.
Sec. 1204. Gadsden Air Depot, Alabama.
Sec. 1205. Regulations affecting intrastate aviation in Alaska.
Sec. 1206. Westchester County Airport, New York.
  
Sec. 1207. Bedford Airport, Pennsylvania.
Sec. 1208. Worcester Municipal Airport, Massachusetts.
Sec. 1209. Central Florida Airport, Sanford, Florida.
  
Sec. 1210. Aircraft Noise Ombudsman.
Sec. 1211. Special rule for privately owned reliever airports.
Sec. 1212. Sense of the Senate regarding the funding of the Federal 
              Aviation Administration.
  
Sec. 1213. Rural air fare study.
Sec. 1214. Carriage of candidates in State and local elections.
Sec. 1215. Special flight rules in the vicinity of Grand Canyon 
              National Park.
Sec. 1216. Transfer of air traffic control tower; closing of flight 
              service stations.
  
Sec. 1217. Location of Doppler radar stations, New York.
Sec. 1218. Train whistle requirements.
Sec. 1219. Increased fees.
  
Sec. 1220. Structures interfering with air commerce.
Sec. 1221. Hawaii cargo.
Sec. 1222. Limitation on authority of States to regulate gambling 
              devices on vessels.
Sec. 1223. Clarifying amendment.

     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.

     SEC. 3. APPLICABILITY.

       (a) In General.--Except as otherwise specifically provided, 
     this Act and the amendments made by this Act apply only to 
     fiscal years beginning after September 30, 1996.
       (b) Limitation on Statutory Construction.--Nothing in this 
     Act or any amendment made by this Act shall be construed as 
     affecting funds made available for a fiscal year ending 
     before October 1, 1996.
                TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS
              Subtitle A--Reauthorization of FAA Programs

     SEC. 101. AIRPORT IMPROVEMENT PROGRAM.

       (a) Authorization of Appropriations.--Section 48103 is 
     amended--
       (1) by striking ``September 30, 1981'' and inserting 
     ``September 30, 1996''; and
       (2) by striking ``$17,583,500,000'' and all that follows 
     through the period at the end and inserting the following: 
     ``$2,280,000,000 for fiscal years ending before October 1, 
     1997, and $4,627,000,000 for fiscal years ending before 
     October 1, 1998.''.
       (b) Obligational Authority.--Section 47104(c) is amended by 
     striking ``1996'' and inserting ``1998''.

     SEC. 102. AIRWAY FACILITIES IMPROVEMENT PROGRAM.

       (a) Authorization of Appropriations.--Section 48101(a) is 
     amended by striking paragraphs (1) through (4) and inserting 
     the following:
       ``(1) $2,068,000,000 for fiscal year 1997.
       ``(2) $2,129,000,000 for fiscal year 1998.''.
       (b) Clerical Amendments.--Chapter 481 is amended--
       (1) by striking the heading for section 48101 and inserting 
     the following:

     ``Sec. 48101. Air navigation facilities and equipment''; and

       (2) in the table of sections by striking the item relating 
     to section 48101 and inserting the following:

``48101. Air navigation facilities and equipment.''.

     SEC. 103. FAA OPERATIONS.

       (a) Authorization of Appropriations From General Fund.--
     Section 106(k) is amended by striking ``$4,088,000,000'' and 
     all that follows through the period at the end and inserting 
     the following: ``$5,158,000,000 for fiscal year 1997 and 
     $5,344,000,000 for fiscal year 1998.''.
       (b) Authorization of Appropriations From Trust Fund.--
     Section 48104(c) is amended--
       (1) in the subsection heading by striking ``1996'' and 
     inserting ``1998'';
       (2) in the matter preceding paragraph (1) by striking 
     ``1994, 1995, and 1996'' and inserting ``1994 through 1998''; 
     and
       (3) in paragraph (2)(A) by striking ``70 percent'' and 
     inserting ``72.5 percent''.
       (c) Limitation on Obligating or Expending Amounts.--Section 
     48108(c) is amended by striking ``1996'' and inserting 
     ``1998''.
       (d) Clerical Amendments.--Chapter 481 is amended--
       (1) by striking the heading for section 48104 and inserting 
     the following:

     ``Sec. 48104. Operations and maintenance''; and

       (2) in the table of sections by striking the item relating 
     to section 48104 and inserting the following:

``48104. Operations and maintenance.''.
               Subtitle B--Airport Development Financing

     SEC. 121. APPORTIONMENTS.

       (a) Amounts Apportioned to Sponsors.--
       (1) Primary airports.--Section 47114(c)(1)(A) is amended--
       (A) by striking ``and'' at the end of clause (iii);
       (B) in clause (iv) by striking ``additional passenger 
     boarding'' and inserting ``of the next 500,000 passenger 
     boardings'';
       (C) by striking the period at the end of clause (iv) and 
     inserting ``; and''; and
       (D) by adding at the end the following:
       ``(v) $.50 for each additional passenger boarding at the 
     airport during the prior calendar year.''.
       (2) Cargo only airports.--Section 47114(c)(2) of such title 
     is amended to read as follows:
       ``(2) Cargo only airports.--
       ``(A) Apportionment.--Subject to subparagraph (D), the 
     Secretary shall apportion an amount equal to 2.5 percent of 
     the amount subject to apportionment each fiscal year to the 
     sponsors of airports served by aircraft providing air 
     transportation of only cargo with a total annual landed 
     weight of more than 100,000,000 pounds.
       ``(B) Suballocation formula.--Any funds apportioned under 
     subparagraph (A) to sponsors of airports described in 
     subparagraph (A) shall be allocated among those airports in 
     the proportion that the total annual landed weight of 
     aircraft described in subparagraph (A) landing at each of 
     those airports bears to the total annual landed weight of 
     those aircraft landing at all those airports.
       ``(C) Limitation.--Not more than 8 percent of the amount 
     apportioned under subparagraph (A) may be apportioned for any 
     one airport.
       ``(D) Distribution to other airports.--Before apportioning 
     amounts to the sponsors of airports under subparagraph (A) 
     for a fiscal year, the Secretary may set-aside a portion of 
     such amounts for distribution to the sponsors of other 
     airports, selected by the Secretary, that the Secretary finds 
     will be served primarily by aircraft providing air 
     transportation of only cargo.
       ``(E) Determination of landed weight.--Landed weight under 
     this paragraph is the landed weight of aircraft landing at 
     each airport described in subparagraph (A) during the prior 
     calendar year.''.
       (3) Repeal of limitation.--Section 47114(c)(3) is repealed.
       (b) Amounts Apportioned to States.--Section 47114(d)(2) of 
     such title is amended--
       (1) by striking ``12'' and inserting ``18.5'';
       (2) in subparagraph (A) by striking ``one'' and inserting 
     ``0.66'';
       (3) in each of subparagraphs (B) and (C) by striking 
     ``49.5'' and inserting ``49.67''; and
       (4) in each of subparagraphs (B) and (C) by striking 
     ``except'' the second place it appears and all that follows 
     through ``title,'' and inserting ``excluding primary airports 
     but including reliever and nonprimary commercial service 
     airports,''.

     SEC. 122. DISCRETIONARY FUND.

       Section 47115 is amended by striking the second subsection 
     (f), relating to minimum amounts to be credited, and 
     inserting the following:
       ``(g) Minimum Amount To Be Credited.--
       ``(1) General rule.--In a fiscal year, there shall be 
     credited to the fund, out of amounts made available under 
     section 48103 of this title, an amount that is at least equal 
     to the sum of--
       ``(A) $148,000,000; plus
       ``(B) the total amount required from the fund to carry out 
     in the fiscal year letters of intent issued before January 1, 
     1996, under section 47110(e) of this title or the Airport and 
     Airway Improvement Act of 1982.
     The amount credited is exclusive of amounts that have been 
     apportioned in a prior fiscal year under section 47114 of 
     this title and that remain available for obligation.
       ``(2) Reduction of apportionments.--In a fiscal year in 
     which the amount credited under subsection (a) is less than 
     the minimum amount to be credited under paragraph (1), the 
     total amount calculated under paragraph (3) shall be reduced 
     by an amount that, when credited to the fund, together with 
     the amount credited under subsection (a), equals such minimum 
     amount.
       ``(3) Amount of reduction.--For a fiscal year, the total 
     amount available to make a reduction to carry out paragraph 
     (2) is the total of the amounts determined under sections 
     47114(c)(1)(A), 47114(c)(2), 47114(d), and 47117(e) of this 
     title. Each amount shall be reduced by an equal percentage to 
     achieve the reduction.
       ``(4) Special rule.--For a fiscal year in which the amount 
     credited to the fund under this subsection exceeds 
     $300,000,000, the Secretary shall allocate the amount of such 
     excess as follows:
       ``(A) \1/3\ shall be made available to airports for which 
     apportionments are made under section 47114(d) of this title.
       ``(B) \1/3\ shall be made available for airport noise 
     compatibility planning under section 47505(a)(2) of this 
     title and for carrying out noise compatibility programs under 
     section 47504(c)(1) of this title.

[[Page H11291]]

       ``(C) \1/3\ shall be made available to current or former 
     military airports for which grants may be made under section 
     47117(e)(1)(B) of this title.''.

     SEC. 123. USE OF APPORTIONED AMOUNTS.

       (a) Period of Availability.--Section 47117(b) is amended by 
     inserting before the period at the end of the first sentence 
     the following: ``or the 3 fiscal years immediately following 
     that year in the case of a primary airport that had less than 
     .05 percent of the total boardings in the United States in 
     the preceding calendar year''.
       (b) Special Apportionment Categories.--Section 47117(e)(1) 
     is amended--
       (1) by striking ``made available under section 48103'' and 
     inserting ``available to the discretionary fund under section 
     47115'';
       (2) by striking subparagraphs (A), (C), and (D);
       (3) by redesignating subparagraphs (B) and (E) as 
     subparagraphs (A) and (B), respectively;
       (4) in subparagraph (A), as so redesignated, by striking 
     ``at least 12.5'' and inserting ``At least 31'';
       (5) by adding at the end of subparagraph (A), as so 
     redesignated, the following: ``The Secretary may count the 
     amount of grants made for such planning and programs with 
     funds apportioned under section 47114 in that fiscal year in 
     determining whether or not such 31 percent requirement is 
     being met in that fiscal year.'';
       (6) in subparagraph (B), as so redesignated, by striking 
     ``at least 2.25'' and all that follows through ``1996,'' and 
     inserting ``At least 4 percent for each fiscal year 
     thereafter''; and
       (7) by inserting before the period at the end of 
     subparagraph (B), as so redesignated, the following: ``and to 
     sponsors of noncommercial service airports for grants for 
     operational and maintenance expenses at any such airport if 
     the amount of such grants to the sponsor of the airport does 
     not exceed $30,000 in that fiscal year, if the Secretary 
     determines that the airport is adversely affected by the 
     closure or realignment of a military base, and if the sponsor 
     of the airport certifies that the airport would otherwise 
     close if the airport does not receive the grant''.
       (c) Conforming Amendments.--Section 47117(e) is amended--
       (1) by striking paragraph (2); and
       (2) by redesignating paragraph (3) as paragraph (2).

     SEC. 124. 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)(B) 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 determines 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, Utilities, and Hangars.--
     Section 47118(f) is amended--
       (1) in the heading by striking ``and Utilities'' and 
     inserting ``Utilities, and Hangars'';
       (2) by striking ``for the fiscal years ending September 30, 
     1993-1996,'' and inserting ``for fiscal years beginning after 
     September 30, 1992,''; and
       (3) by striking ``and utilities'' and inserting 
     ``utilities, and hangars''.
       (d) 2-Year Extension.--Section 47117(e)(1)(B), as 
     redesignated by section 123(b) of this Act, is amended by 
     striking ``and 1996,'' and inserting ``1996, 1997, and 
     1998''.

     SEC. 125. PERIOD OF APPLICABILITY OF AMENDMENTS.

       The amendments made by this subtitle shall cease to be 
     effective on September 30, 1998. On and after such date, 
     sections 47114, 47115, 47117, and 47118 of title 49, United 
     States Code, shall read as if such amendments had not been 
     enacted.
         Subtitle C--Airport Improvement Program Modifications

     SEC. 141. INTERMODAL PLANNING.

       Section 47101(g) is amended to read as follows:
       ``(g) Intermodal Planning.--To carry out the policy of 
     subsection (a)(5) of this section, the Secretary of 
     Transportation shall take each of the following actions:
       ``(1) Coordination in development of airport plans and 
     programs.--Cooperate with State and local officials in 
     developing airport plans and programs that are based on 
     overall transportation needs. The airport plans and programs 
     shall be developed in coordination with other transportation 
     planning and considering comprehensive long-range land-use 
     plans and overall social, economic, environmental, system 
     performance, and energy conservation objectives. The process 
     of developing airport plans and programs shall be continuing, 
     cooperative, and comprehensive to the degree appropriate to 
     the complexity of the transportation problems.
       ``(2) Goals for airport master and system plans.--Encourage 
     airport sponsors and State and local officials to develop 
     airport master plans and airport system plans that--
       ``(A) foster effective coordination between aviation 
     planning and metropolitan planning;
       ``(B) include an evaluation of aviation needs within the 
     context of multimodal planning; and
       ``(C) are integrated with metropolitan plans to ensure that 
     airport development proposals include adequate consideration 
     of land use and ground transportation access.
       ``(3) Representation of airport operators on mpo's.--
     Encourage metropolitan planning organizations, particularly 
     in areas with populations greater than 200,000, to establish 
     membership positions for airport operators.''.

     SEC. 142. PAVEMENT MAINTENANCE PROGRAM.

       (a) Pavement Maintenance.--Subchapter I of chapter 471 is 
     amended by adding at the end the following:

     ``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 
     guidelines shall provide that the Administrator may designate 
     not more than 10 projects. The guidelines 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 the enactment of this section 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 table of sections for such 
     subchapter is amended by inserting after the item relating to 
     section 47131 the following:

``47132. Pavement maintenance.''.

     SEC. 143. 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.''.

     SEC. 144. COST REIMBURSEMENT FOR PROJECTS COMMENCED PRIOR TO 
                   GRANT AWARD.

       (a) Cost Reimbursement.--Section 47110(b)(2)(C) is amended 
     to read as follows:
       ``(C) if the Government's share is paid only with amounts 
     apportioned under paragraphs (1) and (2) of section 47114(c) 
     of this title and if the cost is incurred--
       ``(i) after September 30, 1996;
       ``(ii) before a grant agreement is executed for the 
     project; and
       ``(iii) in accordance with an airport layout plan approved 
     by the Secretary and with all statutory and administrative 
     requirements that would have been applicable to the project 
     if the project had been carried out after the grant agreement 
     had been executed;''.
       (b) Use of Discretionary Funds.--Section 47110 is amended 
     by adding at the end the following:
       ``(g) Use of Discretionary Funds.--A project for which cost 
     reimbursement is provided under subsection (b)(2)(C) shall 
     not receive priority consideration with respect to the use of 
     discretionary funds made available under section 47115 of 
     this title even if the amounts made available under 
     paragraphs (1) and (2) of section 47114(c) are not sufficient 
     to cover the Government's share of the cost of project.''.

     SEC. 145. SELECTION OF PROJECTS FOR GRANTS FROM DISCRETIONARY 
                   FUND.

       (a) Selection of Projects for Grants.--Section 47115(d) is 
     amended--
       (1) by striking ``; and'' at the end of paragraph (2) and 
     inserting 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 the 
     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;'';
       (2) by striking the period at the end of paragraph (3) and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(4) 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);

[[Page H11292]]

       ``(5) the projected growth in the number of passengers that 
     will be using the airport at which the project will be 
     carried out; and
       ``(6) 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 the number of 
     passenger boardings increased by at least 20 percent as 
     compared to the number of passenger boardings in the 12-month 
     period preceding such period.''.
       (b) Priority for Letters of Intent.--Section 47115, as 
     amended by section 122 of this Act, is further amended 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. 146. SMALL AIRPORT FUND.

       Section 47116 is amended by adding at the end the 
     following:
       ``(d) Priority Consideration for Certain Projects.--In 
     making grants to sponsors described in subsection (b)(2), the 
     Secretary shall give priority consideration to multi-year 
     projects for construction of new runways that the Secretary 
     finds are cost beneficial and would increase capacity in a 
     region of the United States.''.

     SEC. 147. STATE BLOCK GRANT PROGRAM.

       (a) Participating States.--Section 47128 is amended--
       (1) in subsection (a) by striking ``7 qualified States'' 
     and inserting ``8 qualified States for fiscal year 1997 and 9 
     qualified States for each fiscal year thereafter'';
       (2) in subsection (b)(1)--
       (A) by striking ``(1)''; and
       (B) by redesignating subparagraphs (A) through (E) as 
     paragraphs (1) through (5), respectively; and
       (3) by striking subsection (b)(2).
       (b) Use of State Priority System.--Section 47128(c) is 
     amended--
       (1) by striking ``(b)(1)(B) or (C)'' and inserting ``(b)(2) 
     or (b)(3)''; and
       (2) 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) Repeal of Expiration Date.--
       (1) In general.--Section 47128 is amended--
       (A) by striking ``pilot'' in the section heading;
       (B) by striking ``pilot'' in subsection (a); and
       (C) by striking subsection (d).
       (2) Conforming amendment.--The table of sections for 
     chapter 471 is amended by striking the item relating to 
     section 47128 and inserting the following:

``47128. State block grant program.''.

     SEC. 148. INNOVATIVE FINANCING TECHNIQUES.

       (a) In General.--The Secretary of Transportation is 
     authorized to carry out a demonstration program under which 
     the Secretary may approve applications under subchapter I of 
     chapter 471 of title 49, United States Code, for not more 
     than 10 projects for which grants received under such 
     subchapter may be used to implement innovative financing 
     techniques.
       (b) Purpose.--The purpose of the demonstration program 
     shall be to provide information on the use of innovative 
     financing techniques for airport development projects to 
     Congress and the National Civil Aviation Review Commission.
       (c) Limitation.--In no case shall the implementation of an 
     innovative financing technique under the demonstration 
     program result in a direct or indirect guarantee of any 
     airport debt instrument by the Federal Government.
       (d) Innovative Financing Technique Defined.--In this 
     section, the term ``innovative financing technique'' shall be 
     limited to the following:
       (1) Payment of interest.
       (2) Commercial bond insurance and other credit enhancement 
     associated with airport bonds for eligible airport 
     development.
       (3) Flexible non-Federal matching requirements.
       (e) Expiration of Authority.--The authority of the 
     Secretary to carry out the demonstration program shall expire 
     on September 30, 1998.

     SEC. 149. PILOT PROGRAM ON PRIVATE OWNERSHIP OF AIRPORTS.

       (a) Establishment of Program.--
       (1) In general.--Subchapter I of chapter 471, as amended by 
     section 804 of this Act, is further amended by adding after 
     section 47133 the following:

     ``Sec. 47134. Pilot program on private ownership of airports

       ``(a) Submission of Applications.--If a sponsor intends to 
     sell or lease a general aviation airport or lease any other 
     type of airport for a long term to a person (other than a 
     public agency), the sponsor and purchaser or lessee may apply 
     to the Secretary of Transportation for exemptions under this 
     section.
       ``(b) Approval of Applications.--The Secretary may approve, 
     with respect to not more than 5 airports, applications 
     submitted under subsection (a) granting exemptions from the 
     following provisions:
       ``(1) Use of revenues.--
       ``(A) In general.--The Secretary may grant an exemption to 
     a sponsor from the provisions of sections 47107(b) and 47133 
     of this title (and any other law, regulation, or grant 
     assurance) to the extent necessary to permit the sponsor to 
     recover from the sale or lease of the airport such amount as 
     may be approved--
       ``(i) by at least 65 percent of the air carriers serving 
     the airport; and
       ``(ii) by air carriers whose aircraft landing at the 
     airport during the preceding calendar year had a total landed 
     weight during the preceding calendar year of at least 65 
     percent of the total landed weight of all aircraft landing at 
     the airport during such year.
       ``(B) Landed weight defined.--In this paragraph, the term 
     `landed weight' means the weight of aircraft transporting 
     passengers or cargo, or both, in intrastate, interstate, and 
     foreign air transportation, as the Secretary determines under 
     regulations the Secretary prescribes.
       ``(2) Repayment requirements.--The Secretary may grant an 
     exemption to a sponsor from the provisions of sections 47107 
     and 47152 of this title (and any other law, regulation, or 
     grant assurance) to the extent necessary to waive any 
     obligation of the sponsor to repay to the Federal Government 
     any grants, or to return to the Federal Government any 
     property, received by the airport under this title, the 
     Airport and Airway Improvement Act of 1982, or any other law.
       ``(3) Compensation from airport operations.--The Secretary 
     may grant an exemption to a purchaser or lessee from the 
     provisions of sections 47107(b) and 47133 of this title (and 
     any other law, regulation, or grant assurance) to the extent 
     necessary to permit the purchaser or lessee to earn 
     compensation from the operations of the airport.
       ``(c) Terms and Conditions.--The Secretary may approve an 
     application under subsection (b) only if the Secretary finds 
     that the sale or lease agreement includes provisions 
     satisfactory to the Secretary to ensure the following:
       ``(1) The airport will continue to be available for public 
     use on reasonable terms and conditions and without unjust 
     discrimination.
       ``(2) The operation of the airport will not be interrupted 
     in the event that the purchaser or lessee becomes insolvent 
     or seeks or becomes subject to any State or Federal 
     bankruptcy, reorganization, insolvency, liquidation, or 
     dissolution proceeding or any petition or similar law seeking 
     the dissolution or reorganization of the purchaser or lessee 
     or the appointment of a receiver, trustee, custodian, or 
     liquidator for the purchaser or lessee or a substantial part 
     of the purchaser or lessee's property, assets, or business.
       ``(3) The purchaser or lessee will maintain, improve, and 
     modernize the facilities of the airport through capital 
     investments and will submit to the Secretary a plan for 
     carrying out such maintenance, improvements, and 
     modernization.
       ``(4) Every fee of the airport imposed on an air carrier on 
     the day before the date of the lease of the airport will not 
     increase faster than the rate of inflation unless a higher 
     amount is approved--
       ``(A) by at least 65 percent of the air carriers serving 
     the airport; and
       ``(B) by air carriers whose aircraft landing at the airport 
     during the preceding calendar year had a total landed weight 
     during the preceding calendar year of at least 65 percent of 
     the total landed weight of all aircraft landing at the 
     airport during such year.
       ``(5) The percentage increase in fees imposed on general 
     aviation aircraft at the airport will not exceed the 
     percentage increase in fees imposed on air carriers at the 
     airport.
       ``(6) Safety and security at the airport will be maintained 
     at the highest possible levels.
       ``(7) The adverse effects of noise from operations at the 
     airport will be mitigated to the same extent as at a public 
     airport.
       ``(8) Any adverse effects on the environment from airport 
     operations will be mitigated to the same extent as at a 
     public airport.
       ``(9) Any collective bargaining agreement that covers 
     employees of the airport and is in effect on the date of the 
     sale or lease of the airport will not be abrogated by the 
     sale or lease.
       ``(d) Participation of Certain Airports.--
       ``(1) General aviation airports.--If the Secretary approves 
     under subsection (b) applications with respect to 5 airports, 
     one of the airports must be a general aviation airport.
       ``(2) Large hub airports.--The Secretary may not approve 
     under subsection (b) more than 1 application submitted by an 
     airport that had 1 percent or more of the total passenger 
     boardings (as defined in section 47102) in the United States 
     in the preceding calendar year.
       ``(e) Required Finding That Approval Will Not Result in 
     Unfair Methods of Competition.--The Secretary may approve an 
     application under subsection (b) only if the Secretary finds 
     that the approval will not result in unfair and deceptive 
     practices or unfair methods of competition.
       ``(f) Interests of General Aviation Users.--In approving an 
     application of an airport under this section, the Secretary 
     shall ensure that the interests of general aviation users of 
     the airport are not adversely affected.
       ``(g) Passenger Facility Fees; Apportionments; Service 
     Charges.--Notwithstanding that the sponsor of an airport 
     receiving an exemption under subsection (b) is not a public 
     agency, the sponsor shall not be prohibited from--
       ``(1) imposing a passenger facility fee under section 40117 
     of this title;
       ``(2) receiving apportionments under section 47114 of this 
     title; or
       ``(3) collecting reasonable rental charges, landing fees, 
     and other service charges from aircraft operators under 
     section 40116(e)(2) of this title.
       ``(h) Effectiveness of Exemptions.--An exemption granted 
     under subsection (b) shall continue in effect only so long as 
     the facilities sold or leased continue to be used for airport 
     purposes.
       ``(i) Revocation of Exemptions.--The Secretary may revoke 
     an exemption issued to a purchaser or lessee of an airport 
     under subsection (b)(3) if, after providing the purchaser or 
     lessee with notice and an opportunity to be heard, the 
     Secretary determines that the purchaser or lessee has 
     knowingly violated any of the terms

[[Page H11293]]

     specified in subsection (c) for the sale or lease of the 
     airport.
       ``(j) Nonapplication of Provisions to Airports Owned by 
     Public Agencies.--The provisions of this section requiring 
     the approval of air carriers in determinations concerning the 
     use of revenues, and imposition of fees, at an airport shall 
     not be extended so as to apply to any airport owned by a 
     public agency that is not participating in the program 
     established by this section.
       ``(k) Audits.--The Secretary may conduct periodic audits of 
     the financial records and operations of an airport receiving 
     an exemption under this section.
       ``(l) Report.--Not later than 2 years after the date of the 
     initial approval of an application under this section, the 
     Secretary shall transmit to the Committee on Transportation 
     and Infrastructure of the House of Representatives and the 
     Committee on Commerce, Science, and Transportation of the 
     Senate a report on implementation of the program under this 
     section.
       ``(m) General Aviation Airport Defined.--In this section, 
     the term `general aviation airport' means an airport that is 
     not a commercial service airport.''.
       (2) Conforming amendment.--The table of sections for such 
     chapter is amended by inserting after the item relating to 
     section 47133, as added by section 804 of this Act, the 
     following:

``47134. Pilot program on private ownership of airports.''.
       (b) Taxation.--Section 40116(b) is amended--
       (1) by striking ``a State or'' and inserting ``a State, 
     a''; and
       (2) by inserting after ``of a State'' the following: ``, 
     and any person that has purchased or leased an airport under 
     section 47134 of this title''.
       (c) Federal Share.--Section 47109(a) is amended--
       (1) by striking ``and'' at the end of paragraph (1);
       (2) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(3) 40 percent for a project funded by the Administrator 
     from the discretionary fund under section 47115 at an airport 
     receiving an exemption under section 47134.''.
       (d) Resolution of Airport-Air Carrier Disputes Concerning 
     Airport Fees.--Section 47129(a) is amended by adding at the 
     end the following:
       ``(4) Fees imposed by privately-owned airports.--In 
     evaluating the reasonableness of a fee imposed by an airport 
     receiving an exemption under section 47134 of this title, the 
     Secretary shall consider whether the airport has complied 
     with section 47134(c)(4).''.
                          TITLE II--FAA REFORM

     SEC. 201. SHORT TITLE.

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

     SEC. 202. DEFINITIONS.

       In this title, the following definitions 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. 203. 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. 221. FINDINGS.

       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 over 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 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, 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. 222. 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. 223. 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 subsection (b) and 
     inserting ``Except as provided in subsection (f) or in other 
     provisions of law, the Administrator''; and
       (2) in subsection (f)--
       (A) by striking ``(f) The Secretary'' 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'';
       (B) in subsection (f)(1), as so designated--
       (i) by moving the remainder of the text 2 ems to the right;
       (ii) by striking ``The Secretary may not'' and inserting 
     ``Neither the Secretary nor the Administrator may''; and
       (iii) by striking ``nor'' and inserting ``or''; and
       (C) by adding at the end the following:
       ``(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) the appointment and employment of all officers and 
     employees of the Administration (other than Presidential and 
     political appointees);
       ``(ii) the acquisition and maintenance of property and 
     equipment of the Administration;
       ``(iii) except as otherwise provided in paragraph (3), the 
     promulgation of regulations, rules, orders, circulars, 
     bulletins, and other official publications of the 
     Administration; and
       ``(iv) 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 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, 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.

[[Page H11294]]

       ``(3) Definition of political appointee.--For purposes of 
     this subsection, the term `political appointee' means any 
     individual who--
       ``(A) is employed in a position listed in sections 5312 
     through 5316 of title 5 (relating to the Executive Schedule);
       ``(B) is a limited term appointee, limited emergency 
     appointee, or noncareer appointee in the Senior Executive 
     Service, as defined under paragraphs (5), (6), and (7), 
     respectively, of section 3132(a) of title 5; 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 
     the enactment of this Act.

     SEC. 224. REGULATIONS.

       Section 106(f), as amended by section 223 of this Act, 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 16 
     months after the last day of the public comment period for 
     the regulations or, in the case of an advanced notice of 
     proposed rulemaking, if issued, not later than 24 months 
     after the date of publication in the Federal Register of 
     notice of the proposed rulemaking.
       ``(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 $100,000,000 or more (adjusted 
     annually for inflation beginning with the year following the 
     date of the enactment of the Air Traffic Management System 
     Performance Improvement Act of 1996) in any 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 the Administrator, in consultation with the 
     Secretary (as appropriate), determines that the regulation 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 the 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 such date of 
     enactment 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 the 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 the 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. 225. PERSONNEL AND SERVICES.

       Section 106 is amended by adding at the end the following:
       ``(l) Personnel and Services.--
       ``(1) Officers and employees.--Except as provided in 
     section 40122(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 40122(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) General rule.--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.
       ``(B) Incidental expenses.--The Administrator is authorized 
     to provide for incidental expenses, including transportation, 
     lodging, and subsistence, for volunteers who provide 
     voluntary services under this subsection.
       ``(C) Limited treatment as federal employees.--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. 226. CONTRACTS.

       Section 106(l), as added by section 225 of this Act, is 
     further amended by adding at the end the following:
       ``(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. 227. FACILITIES.

       Section 106, as amended by section 225 of this Act, is 
     further amended by adding at the end the following:
       ``(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, supplies and equipment 
     other than administrative supplies or equipment.''.

     SEC. 228. PROPERTY.

       Section 106, as amended by section 227 of this Act, is 
     further amended by adding at the end the following:
       ``(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

[[Page H11295]]

     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. 229. TRANSFERS OF FUNDS FROM OTHER FEDERAL AGENCIES.

       Section 106, as amended by section 228 of this Act, is 
     further amended by adding at the end the following:
       ``(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. 230. MANAGEMENT ADVISORY COUNCIL.

       Section 106, as amended by section 229 of this Act, is 
     further amended by adding at the end the following:
       ``(p) Management Advisory Council.--
       ``(1) Establishment.--Within 3 months after the date of the 
     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 commercial 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.''.
   Subtitle B--Federal Aviation Administration Streamlining Programs

     SEC. 251. REVIEW OF ACQUISITION MANAGEMENT SYSTEM.

       Not later than April 1, 1999, the Administrator shall 
     employ outside experts to provide an independent evaluation 
     of the effectiveness of the Administration's 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. 252. AIR TRAFFIC CONTROL MODERNIZATION REVIEWS.

       Chapter 401 is amended by adding at the end the following:

     ``Sec. 40121. Air traffic control modernization reviews

       ``(a) Required Terminations of Acquisitions.--The 
     Administrator of the Federal Aviation Administration shall 
     terminate any acquisition program initiated after the date of 
     the 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 Termination of Acquisition Programs.--The 
     Administrator shall consider terminating, under the authority 
     of subsection (a), any substantial acquisition program 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 acquire real property, goods, and services 
     through 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. 253. FEDERAL AVIATION ADMINISTRATION PERSONNEL 
                   MANAGEMENT SYSTEM.

       Chapter 401, as amended by section 252 of this Act, is 
     further amended by adding at the end the following:

     ``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 of the Federal Aviation 
     Administration 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 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) Annual 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

[[Page H11296]]

     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 officer 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 2635 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 representative agree to the 
     contrary.''.

     SEC. 254. CONFORMING AMENDMENT.

       The table of sections for chapter 401 is amended by adding 
     at the end the following:

``40121. Air traffic control modernization reviews.
``40122. Federal Aviation Administration personnel management 
              system.''.
  Subtitle C--System To Fund Certain Federal Aviation Administration 
                               Functions

     SEC. 271. FINDINGS.

       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 world-wide 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 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. 272. PURPOSES.

       The purposes of this subtitle 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 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. 273. USER FEES FOR VARIOUS FEDERAL AVIATION 
                   ADMINISTRATION SERVICES.

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

     ``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. Services for which 
     costs may be recovered include the costs of air traffic 
     control, navigation, weather services, training and emergency 
     services which are available to facilitate safe 
     transportation over the United States, and other services 
     provided by the Administrator or by programs financed by the 
     Administrator to flights that neither take off nor land in 
     the United States.
       ``(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 table of sections for 
     chapter 453 is amended by striking the item relating to 
     section 45301 and inserting the following:

``45301. General provisions.''.

     SEC. 274. INDEPENDENT ASSESSMENT OF FAA FINANCIAL 
                   REQUIREMENTS; ESTABLISHMENT OF NATIONAL CIVIL 
                   AVIATION REVIEW COMMISSION.

       (a) Independent Assessment.--
       (1) Initiation.--Not later than 30 days after the date of 
     the enactment of this Act, 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 
     appropriation levels established by 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 Commission established 
     under subsection (b), 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) National Civil Aviation Review Commission.--
       (1) Establishment.--There is established a commission to be 
     known as the National Civil Aviation Review Commission 
     (hereinafter in this section referred to as the 
     ``Commission'').
       (2) Membership.--The Commission shall consist of 21 members 
     to be appointed as follows:
       (A) 13 members to be appointed by the Secretary, in 
     consultation with the Secretary of the Treasury, from among 
     individuals who have expertise in the aviation industry and 
     who are able, collectively, to represent a balanced 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 appointed under this subparagraph shall have 
     detailed knowledge of the congressional budgetary process.

[[Page H11297]]

       (B) 2 members appointed by the Speaker of the House of 
     Representatives.
       (C) 2 members appointed by the minority leader of the House 
     of Representatives.
       (D) 2 members appointed by the majority leader of the 
     Senate.
       (E) 2 members appointed by the minority leader of the 
     Senate.
       (3) Task forces.--The Commission shall establish an 
     aviation funding task force and an aviation safety task force 
     to carry out the responsibilities of the Commission under 
     this subsection.
       (4) First meeting.--The Commission may conduct its first 
     meeting as soon as a majority of the members of the 
     Commission are appointed.
       (5) Hearings and consultation.--
       (A) Hearings.--The Commission 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 may conduct such additional hearings as 
     may be necessary.
       (B) Consultation.--The Commission shall consult on a 
     regular and frequent basis with 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.
       (C) FACA not to apply.--The Commission shall not be 
     considered an advisory committee for purposes of the Federal 
     Advisory Committee Act (5 U.S.C. App.).
       (6) Duties of aviation funding task force.--
       (A) Report to secretary.--
       (i) In general.--The aviation funding task force 
     established pursuant to paragraph (3) 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 the 
     report. 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.
       (ii) Contents.--The report submitted by the aviation 
     funding 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 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 aviation funding task force shall 
     make such recommendations under subparagraph (A)(ii)(III) as 
     the task force deems appropriate. Those recommendations may 
     include--
       (i) proposals for off-budget treatment of the Airport and 
     Airway Trust Fund;
       (ii) alternative financing and funding proposals, including 
     linked financing proposals;
       (iii) modifications to existing levels of Airport and 
     Airways Trust Fund receipts and taxes for each type of tax;
       (iv) 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;
       (v) methods to ensure that funds collected from the 
     aviation community are able to meet the needs of the agency;
       (vi) methods to ensure that funds collected from the 
     aviation community and passengers are used to support the 
     aviation system;
       (vii) means of meeting the airport infrastructure needs for 
     large, medium, and small airports; and
       (viii) any other matter the task force deems appropriate to 
     address the funding and needs of the Administration and the 
     aviation system.
       (C) Additional recommendations.--The aviation funding 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 aviation funding 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.
       (7) Duties of aviation safety task force.--
       (A) Report to administrator.--Not later than 1 year after 
     the date of the enactment of this Act, the aviation safety 
     task force established pursuant to paragraph (3) shall submit 
     to the Administrator a report setting forth a comprehensive 
     analysis of aviation safety in the United States and emerging 
     trends in the safety of particular sectors of the aviation 
     industry.
       (B) Contents.--The report to be submitted under 
     subparagraph (A) shall include an assessment of--
       (i) the adequacy of staffing and training resources for 
     safety personnel of the Administration, including safety 
     inspectors;
       (ii) the Administration's processes for ensuring the public 
     safety from fraudulent parts in civil aviation and the extent 
     to which use of suspected unapproved parts requires 
     additional oversight or enforcement action; and
       (iii) the ability of the Administration to anticipate 
     changes in the aviation industry and to develop policies and 
     actions to ensure the highest level of aviation safety in the 
     21st century.
       (8) Access to documents and staff.--The Administration may 
     give the Commission 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 Commission 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.
       (9) Travel and per diem.--Each member of the Commission 
     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.
       (10) Detail of personnel from the administration.--The 
     Administrator shall make available to the Commission such 
     staff, information, and administrative services and 
     assistance as may reasonably be required to enable the 
     Commission to carry out its responsibilities under this 
     subsection.
       (11) Authorization of appropriations.--There is authorized 
     to be appropriated such sums as may be necessary to carry out 
     the provisions of this subsection.
       (c) Reports to Congress.--
       (1) Report by the secretary based on final report of 
     aviation funding task force.--
       (A) Consideration of task force's preliminary report.--Not 
     later than 30 days after receiving the preliminary report of 
     the aviation funding task force, the Secretary, in 
     consultation with the Secretary of the Treasury, shall 
     furnish comments on the report to the task force.
       (B) Report to congress.--Not later than 30 days after 
     receiving the final report of the aviation funding task 
     force, and in no event more than 1 year after the date of the 
     enactment of this Act, the Secretary, after consulting the 
     Secretary of the Treasury, shall transmit a report 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 
     and Means of the House of Representatives. Such report shall 
     be based upon the final

[[Page H11298]]

     report of the task force and shall contain the Secretary's 
     recommendations for funding the needs of the aviation system 
     through the year 2002.
       (C) Contents.--The Secretary shall include in the report to 
     Congress under subparagraph (B)--
       (i) a copy of the final report of the task force; and
       (ii) a draft bill containing the changes in law necessary 
     to implement the Secretary's recommendations.
       (D) Publication.--The Secretary shall cause a copy of the 
     report to be printed in the Federal Register upon its 
     transmittal to Congress under subparagraph (B).
       (2) Report by the administrator based on final report of 
     aviation safety task force.--Not later than 30 days after 
     receiving the report of the aviation safety task force, the 
     Administrator shall transmit the report to Congress, together 
     with the Administrator's recommendations for improving 
     aviation safety in the United States.
       (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 
     Commission, 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 180 days 
     after the date of the enactment of this Act.
       (e) GAO Assessment.--Not later than 180 days after the date 
     of the enactment of this Act, the Comptroller General shall 
     transmit to the Commission and Congress an independent 
     assessment of airport development needs.

     SEC. 275. PROCEDURE FOR CONSIDERATION OF CERTAIN FUNDING 
                   PROPOSALS.

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

     ``Sec. 48111. Funding proposals

       ``(a) Introduction in the Senate.--Within 15 days (not 
     counting any day on which the Senate is not in session) after 
     a funding proposal is submitted to the Senate by the 
     Secretary of Transportation under section 274(c) of the Air 
     Traffic Management System Performance Improvement Act of 
     1996, an implementing bill with respect to such funding 
     proposal 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.
       ``(b) Consideration in the Senate.--An implementing bill 
     introduced in the Senate under subsection (a) shall be 
     referred to the Committee on Commerce, Science, and 
     Transportation. The Committee on Commerce, Science, and 
     Transportation shall report the bill with its recommendations 
     within 60 days following the date of introduction of the 
     bill. Upon the reporting of the bill by the Committee on 
     Commerce, Science, and Transportation, the reported bill 
     shall be referred sequentially to the Committee on Finance 
     for a period of 60 legislative days.
       ``(c) Definitions.--For purposes of this section, the 
     following definitions apply:
       ``(1) Implementing bill.--The term `implementing bill' 
     means only a bill of the Senate 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.
       ``(d) Rules of the Senate.--The provisions of this section 
     are enacted--
       ``(1) as an exercise of the rulemaking power of the Senate 
     and as such they are deemed a part of the rules of the Senate 
     and they supersede other rules only to the extent that they 
     are inconsistent therewith; and
       ``(2) with full recognition of the constitutional right of 
     the Senate to change the rules (so far as relating to the 
     procedure of the Senate) at any time, in the same manner and 
     to the same extent as in the case of any other rule of the 
     Senate.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     481 is amended by adding at the end thereof the following:

``48111. Funding proposals.''.

     SEC. 276. ADMINISTRATIVE PROVISIONS.

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

     ``Sec. 45303. Administrative provisions

       ``(a) Fees Payable to Administrator.--All fees imposed and 
     amounts collected under this chapter for services performed, 
     or materials furnished, by the Federal Aviation 
     Administration are payable to the Administrator of the 
     Federal Aviation Administration.
       ``(b) Refunds.--The Administrator may refund any fee paid 
     by mistake or any amount paid in excess of that required.
       ``(c) 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 
     September 30, 1996, are required to be credited to the 
     general fund of the Treasury (whether imposed under this 
     section or not)--
       ``(1) shall be credited to a separate account established 
     in the Treasury and made available for Administration 
     activities;
       ``(2) shall be available immediately for expenditure but 
     only for congressionally authorized and intended purposes; 
     and
       ``(3) shall remain available until expended.
       ``(d) Annual Budget Report by Administrator.--The 
     Administrator shall, on the same day each year as the 
     President submits the annual budget to 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--
       ``(1) a list of fee collections by the Administration 
     during the preceding fiscal year;
       ``(2) a list of activities by the Administration during the 
     preceding fiscal year that were supported by fee expenditures 
     and appropriations;
       ``(3) budget plans for significant programs, projects, and 
     activities of the Administration, including out-year funding 
     estimates;
       ``(4) any proposed disposition of surplus fees by the 
     Administration; and
       ``(5) such other information as those committees consider 
     necessary.
       ``(e) 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.
       ``(f) 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.''.
       (b) Conforming Amendment.--The table of sections 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. 277. 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:

  ``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 
     1999, 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 
     1999, amounts appropriated from the Airport and Airway Trust 
     Fund shall be appropriated for periods of 3 fiscal years 
     rather than annually.''.
       (b) Conforming Amendment.--The analysis for subtitle VII is 
     amended by inserting after the item relating to chapter 481 
     the following:

``482. ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY TRUST48201.''.ES..

     SEC. 278. RURAL AIR SERVICE SURVIVAL ACT.

       (a) Short Title.--This section may be cited as the ``Rural 
     Air Service Survival Act''.
       (b) Findings.--Congress finds that--
       (1) air service in rural areas is essential to a national 
     and international 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 and 
     international 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 
     Federal Aviation Administration credited to the account 
     established under section 45303 of this title 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

[[Page H11299]]

     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) of this 
     title, including the funds derived from fees imposed under 
     the authority contained in section 45301(a) of this title, 
     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.
       ``(c) Special Rule for Fiscal Year 1997.--Notwithstanding 
     subsections (a) and (b), in fiscal year 1997, amounts in 
     excess of $75,000,000 that are collected in fees pursuant to 
     section 45301(a)(1) of this title shall be available for the 
     essential air service program under this subchapter, in 
     addition to amounts specifically provided for in 
     appropriations Acts.''.
       (d) Conforming Amendment.--The table of sections for 
     chapter 417 is amended by striking the item relating to 
     section 41742 and inserting the following:

``41742. Essential air service authorization.''.
                      TITLE III--AVIATION SECURITY

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

       (a) In General.--Not later than 90 days after the date of 
     the enactment of this Act, the Administrator of the Federal 
     Aviation Administration, in cooperation with other 
     appropriate persons, shall conduct a study and submit to 
     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 commercial 
     service airports to airport operators or to the Federal 
     Government or to provide 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 providing grants from funds received as fees 
     collected under a fee system established under subtitle C of 
     title II of this Act and the amendments made by that 
     subtitle; and
       (2) provide legislative proposals, if necessary, for 
     accomplishing the transfer of responsibilities referred to in 
     subsection (a).

     SEC. 302. CERTIFICATION OF SCREENING COMPANIES.

       The Administrator of 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. 303. WEAPONS AND EXPLOSIVE DETECTION STUDY.

       (a) In General.--The Administrator of the Federal Aviation 
     Administration 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 referred to as the 
     ``panel'').
       (2) Expertise.--Each member of the panel 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, in consultation with the National 
     Science and Technology Council, representatives of 
     appropriate Federal agencies, 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;
       (3) assess the cost and advisability of requiring hardened 
     cargo containers as a way to enhance aviation security and 
     reduce the required sensitivity of bomb detection equipment; 
     and
       (4) on the basis of the assessments and determinations made 
     under paragraphs (1), (2), and (3), 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 actions 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 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. 304. 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 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) such individual is unable to support statements made 
     on the application of such individual;
       ``(iii) there are significant inconsistencies in the 
     information provided on the application of such 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).
       ``(D) If an individual requires a criminal history record 
     check under subparagraph (C), the individual may be employed 
     as a screener until the check is completed if the individual 
     is subject to supervision.''.
       (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 of the Federal Aviation 
     Administration 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 the enactment of this Act.

     SEC. 305. INTERIM DEPLOYMENT OF COMMERCIALLY AVAILABLE 
                   EXPLOSIVE DETECTION EQUIPMENT.

       (a) In General.--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. The Administrator may permit the 
     requirements of this paragraph to be met at airports by the 
     deployment of dogs or other appropriate animals to supplement 
     equipment for screening passengers, baggage, mail, or cargo 
     for explosives or weapons.''.
       (b) Agreements.--The Administrator is authorized to use 
     noncompetitive or cooperative agreements with air carriers 
     and airport authorities that provide for the Administrator to 
     purchase and assist in installing advanced security equipment 
     for the use of such entities.

     SEC. 306. 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. 307. PASSENGER PROFILING.

       The Administrator of the Federal Aviation Administration, 
     the Secretary of Transportation, the intelligence community, 
     and the law enforcement community should continue to assist 
     air carriers in developing computer-assisted passenger 
     profiling programs and other appropriate passenger profiling 
     programs which should be used in conjunction with other 
     security measures and technologies.

     SEC. 308. 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

[[Page H11300]]

     (b) may be used for the improvement of facilities and the 
     purchase and deployment of equipment to enhance and 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. 309. 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. 310. 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 
     each airport determined to be high risk.

     SEC. 311. BAGGAGE MATCH REPORT.

       (a) Report.--If a bag match pilot program is carried out as 
     recommended by the White House Conference on Aviation Safety 
     and Security, not later than the 30th day following the date 
     of completion of the pilot program, the Administrator of the 
     Federal Aviation Administration shall submit to Congress a 
     report 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.
       (b) Sense of the Senate.--It is the sense of the Senate 
     that the Administrator should work with airports and air 
     carriers to develop, to the extent feasible, effective 
     domestic bag matching proposals.

     SEC. 312. 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) 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 such assessments.
       ``(b) 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. 313. REPORT ON AIR CARGO.

       (a) Report.--Not later than 90 days after the date of the 
     enactment of this Act, the Secretary of Transportation shall 
     transmit to Congress a report on any changes recommended and 
     implemented as a result of the White House Commission on 
     Aviation Safety and Security to enhance and supplement 
     screening and inspection of cargo, mail, and company-shipped 
     materials transported in air commerce.
       (b) Contents.--The report shall include--
       (1) an assessment of the effectiveness of the changes 
     referred to in subsection (a);
       (2) an assessment of the oversight by the Federal Aviation 
     Administration of inspections of shipments of mail and cargo 
     by domestic and foreign air carriers;
       (3) an assessment of the need for additional security 
     measures with respect to such inspections;
       (4) an assessment of the adequacy of inspection and 
     screening of cargo on passenger air carriers; and
       (5) any additional recommendations, and if necessary any 
     legislative proposals, necessary to carry out additional 
     changes.
       (c) Sense of the Senate.--It is the sense of the Senate 
     that the inspection of cargo, mail, and company-shipped 
     materials can be enhanced.

     SEC. 314. SENSE OF THE SENATE REGARDING ACTS OF INTERNATIONAL 
                   TERRORISM.

       (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 and that nation, beginning as of the moment 
     that the act of aggression occurs.
                       TITLE IV--AVIATION SAFETY

     SEC. 401. ELIMINATION OF DUAL MANDATE.

       (a) Safety Considerations in Public Interest.--
       (1) Safety as highest priority.--Section 40101(d) is 
     amended--
       (A) by redesignating paragraphs (1) through (6) as 
     paragraphs (2) through (7), respectively; and
       (B) by inserting before paragraph (2), as so redesignated, 
     the following:
       ``(1) assigning, maintaining, and enhancing safety and 
     security as the highest priorities in air commerce.''.
       (2) Elimination of promotion.--Section 40101(d) is further 
     amended--
       (A) in paragraph (2), as redesignated by paragraph (1)(A) 
     of this subsection, by striking ``its development and''; and
       (B) in paragraph (3), as so redesignated--
       (i) by striking ``promoting, encouraging,'' and inserting 
     ``encouraging''; and
       (ii) by inserting before the period at the end ``, 
     including new aviation technology''.
       (b) FAA Safety Mission.--
       (1) In general.--Section 40104 is amended--
       (A) by inserting ``safety of'' before ``air commerce'' in 
     the section heading;
       (B) by inserting ``Safety of'' before ``Air Commerce'' in 
     the heading of subsection (a); and
       (C) by inserting ``safety of'' before ``air commerce'' in 
     subsection (a).
       (2) Clerical amendment.--The table of sections for chapter 
     401 is amended by striking the item relating to section 40104 
     and inserting the following:

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

     SEC. 402. PROTECTION OF VOLUNTARILY SUBMITTED INFORMATION.

       (a) In General.--Chapter 401, as amended by section 253 of 
     this Act, is further amended by adding at the end the 
     following:

     ``Sec. 40123. 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 for such 
     chapter is amended by adding at the end the following:

``40123. Protection of voluntarily submitted information.''.

     SEC. 403. SUPPLEMENTAL TYPE CERTIFICATES.

       Section 44704 is amended--
       (1) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively; and
       (2) by inserting after subsection (a) the following:
       ``(b) Supplemental Type Certificates.--
       ``(1) Issuance.--The Administrator may issue a type 
     certificate designated as a supplemental type certificate for 
     a change to an aircraft, aircraft engine, propeller, or 
     appliance.
       ``(2) Contents.--A supplemental type certificate issued 
     under paragraph (1) shall consist of the change to the 
     aircraft, aircraft engine, propeller, or appliance with 
     respect to the previously issued type certificate for the 
     aircraft, aircraft engine, propeller, or appliance.
       ``(3) Requirement.--If the holder of a supplemental type 
     certificate agrees to permit another person to use the 
     certificate to modify an aircraft, aircraft engine, 
     propeller, or appliance, the holder shall provide the other 
     person with written evidence, in a form acceptable to the 
     Administrator, of that agreement. A person may change an 
     aircraft, aircraft engine, propeller, or appliance based on a 
     supplemental type certificate only if the person requesting 
     the change is the holder of the supplemental type certificate 
     or has permission from the holder to make the change.''.

     SEC. 404. CERTIFICATION OF SMALL AIRPORTS.

       (a) In General.--Section 44706(a) is amended--
       (1) by redesignating paragraph (2) as paragraph (3);
       (2) by inserting after paragraph (1) the following:
       ``(2) that is not located in the State of Alaska and serves 
     any scheduled passenger operation of an air carrier operating 
     aircraft designed for more than 9 passenger seats but less 
     than 31 passenger seats; and'';
       (3) by striking ``and'' at the end of paragraph (3), as 
     redesignated by paragraph (1) of this subsection;
       (4) by striking ``(3) when'' and inserting ``if''; and
       (5) by moving the matter following paragraph (3), as 
     redesignated by paragraph (1) of this subsection, to the left 
     flush full measure.
       (b) Commuter Airports.--Section 44706 is amended by adding 
     at the end the following:
       ``(d) Commuter Airports.--In developing the terms required 
     by subsection (b) for airports covered by subsection (a)(2), 
     the Administrator shall identify and consider a reasonable 
     number of regulatory alternatives and select from such 
     alternatives the least costly, most cost-effective

[[Page H11301]]

     or the least burdensome alternative that will provide 
     comparable safety at airports described in subsections (a)(1) 
     and (a)(2).''.
       (c) Effective Date.--Section 44706 is further amended by 
     adding at the end the following:
       ``(e) Effective Date.--Any regulation establishing the 
     terms required by subsection (b) for airports covered by 
     subsection (a)(2) shall not take effect until such 
     regulation, and a report on the economic impact of the 
     regulation on air service to the airports covered by the 
     rule, has been submitted to Congress and 120 days have 
     elapsed following the date of such submission.''.
       (d) Limitation on Statutory Construction.--Section 44706 is 
     further amended by adding at the end the following:
       ``(f) Limitation on Statutory Construction.--Nothing in 
     this title may be construed as requiring a person to obtain 
     an airport operating certificate if such person does not 
     desire to operate an airport described in subsection (a).''.

     SEC. 405. AUTHORIZATION OF APPROPRIATIONS 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. AIRCRAFT ENGINE STANDARDS.

       (a) Standards and Regulations.--Subsection (a)(1) of 
     section 44715 is amended to read as follows:
       ``(a) Standards and Regulations.--(1)(A) To relieve and 
     protect the public health and welfare from aircraft noise and 
     sonic boom, the Administrator of the Federal Aviation 
     Administration, as he deems necessary, shall prescribe--
       ``(i) standards to measure aircraft noise and sonic boom; 
     and
       ``(ii) regulations to control and abate aircraft noise and 
     sonic boom.
       ``(B) 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.''.
       (b) Interagency Cooperation.--Section 231(a)(2) of the 
     Clean Air Act (42 U.S.C. 7571(a)(2)) is amended--
       (1) by inserting ``(A)'' before ``The Administrator''; and
       (2) by adding at the end the following:
       ``(B)(i) The Administrator shall consult with the 
     Administrator of the Federal Aviation Administration on 
     aircraft engine emission standards.
       ``(ii) The Administrator shall not change the aircraft 
     engine emission standards if such change would significantly 
     increase noise and adversely affect safety.''.

     SEC. 407. 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:

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

       ``(a) In General.--Not later than 90 days after the date of 
     the enactment of this section, the National Transportation 
     Safety Board shall, in consultation and coordination with the 
     Administrator of the Federal Aviation Administration, develop 
     a system for classifying air carrier accident 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 the enactment of this section, provides for 
     safety-related categories that provide clearer descriptions 
     of accidents associated with air transportation, including a 
     more refined classification of accidents which involve 
     fatalities, injuries, or substantial damage and which are 
     only related to the operation of an aircraft.
       ``(2) Public comment.--In 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 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) Publication.--The Board shall publish on a periodic 
     basis accident and safety data in accordance with the final 
     classifications issued under paragraph (3).
       ``(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.''.
       (2) Conforming amendment.--The table of sections for 
     subchapter II of chapter 11 of title 49, United States Code, 
     is amended by adding at the end the following:

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

       (b) Automated Surveillance Targeting Systems.--Section 
     44713 is amended by adding at the end the following:
       ``(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.''.
                     TITLE V--PILOT RECORD SHARING

     SEC. 501. SHORT TITLE.

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

     SEC. 502. EMPLOYMENT INVESTIGATIONS OF PILOT APPLICANTS.

       (a) In General.--Section 44936 is amended by adding at the 
     end the following:
       ``(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, 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 (other than records relating to 
     flight time, duty time, or rest time) 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) Receipt of consent; provision of information.--A 
     person shall not furnish a 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

[[Page H11302]]

     a request for records under paragraph (1) shall provide to 
     the individual who is the subject of the records--
       ``(A) on or before the 20th day following the date of 
     receipt of the request, written notice of the request and of 
     the individual's right to receive a copy of such records; and
       ``(B) in accordance with paragraph (10), 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 the enactment of the Pilot Records Improvement Act of 
     1996, and at least once every 3 years thereafter, the 
     Administrator shall transmit to 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 (f)(1);
       ``(B) a person who has complied with such request;
       ``(C) a person who has entered information contained in the 
     individual's records; or
       ``(D) 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 (f).
       ``(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 (f).
       ``(3) Provision of knowingly false information.--Paragraphs 
     (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.
       ``(h) Limitation on Statutory Construction.--Nothing in 
     subsection (f) shall be construed as precluding the 
     availability of the records of a pilot in an investigation or 
     other proceeding concerning an accident or incident conducted 
     by the Administrator, the National Transportation Safety 
     Board, or a court.''.
       (b) Conforming Amendments.--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) Civil Penalties.--Section 46301, as amended by section 
     1220(b) of this Act, is further amended--
       (1) in each of subsections (a)(1)(A), (d)(2), and 
     (f)(1)(A)(i) by inserting ``44724,'' after ``44718(d),''; and
       (2) in subsection (a)(2)(A) by inserting ``44724,'' after 
     ``44716,''.
       (d) 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 following the date of the enactment of 
     this Act.

     SEC. 503. STUDIES OF MINIMUM STANDARDS FOR PILOT 
                   QUALIFICATIONS AND OF PAY FOR TRAINING.

       (a) Study.--The Administrator of the Federal Aviation 
     Administration shall appoint a task force consisting of 
     appropriate representatives of the aviation industry to 
     conduct--
       (1) a study directed toward the development of--
       (A) 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
       (B) 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 subparagraph 
     (A); and
       (2) a study to determine if the practice of some air 
     carriers to require employees or prospective employees to pay 
     for the training or experience that is needed to perform 
     flight check duties for an air carrier is in the public 
     interest.
       (b) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Administrator shall transmit to 
     Congress a report on the results of the study conducted under 
     subsection (a)(2).

     SEC. 504. STUDY OF MINIMUM FLIGHT TIME.

       (a) Study.--The Administrator of the Federal Aviation 
     Administration shall conduct a study to determine whether 
     current minimum flight time requirements applicable to 
     individuals seeking employment as a pilot with an air carrier 
     are sufficient to ensure public safety.
       (b) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Administrator shall transmit to 
     Congress a report on the results of the study.
                      TITLE VI--CHILD PILOT SAFETY

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``Child Pilot Safety Act''.

     SEC. 602. CHILD PILOT SAFETY.

       (a) Manipulation of Flight Controls.--
       (1) In General.--Chapter 447 is amended by adding at the 
     end the following:

     ``Sec. 44724. Manipulation of flight controls

       ``(a) Prohibition.--No pilot in command of an aircraft may 
     allow an individual who does not hold--
       ``(1) a valid private pilots certificate issued by the 
     Administrator of the Federal Aviation Administration under 
     part 61 of title 14, Code of Federal Regulations; and
       ``(2) the appropriate medical certificate issued by the 
     Administrator under part 67 of such title,
     to manipulate the controls of an aircraft if the pilot knows 
     or should have known that the individual is attempting to set 
     a record or engage in an aeronautical competition or 
     aeronautical feat, as defined by the Administrator.
       ``(b) Revocation of Airmen Certificates.--The Administrator 
     shall issue an order revoking a certificate issued to an 
     airman under section 44703 of this title if the Administrator 
     finds that while acting as a pilot in command of an aircraft, 
     the airman has permitted another individual to manipulate the 
     controls of the aircraft in violation of subsection (a).
       ``(c) Pilot in Command Defined.--In this section, the term 
     `pilot in command' has the meaning given such term by section 
     1.1 of title 14, Code of Federal Regulations.''.
       (2) Conforming amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following:

``44724. Manipulation of flight controls.''.

       (b) Children Flying Aircraft.--
       (1) Study.--The Administrator of the Federal Aviation 
     Administration shall conduct a study of the impacts of 
     children flying aircraft.
       (2) Considerations.--In conducting the study, the 
     Administrator shall consider the effects of imposing any 
     restrictions on children flying aircraft on safety and on the 
     future of general aviation in the United States.
       (3) Report.--Not later than 6 months after the date of the 
     enactment of this Act, the Administrator shall issue a report 
     containing the results of the study, together with 
     recommendations on--
       (A) whether the restrictions established by the amendment 
     made by subsection (a)(1) should be modified or repealed; and

[[Page H11303]]

       (B) whether certain individuals or groups should be exempt 
     from any age, altitude, or other restrictions that the 
     Administrator may impose by regulation.
       (4) Regulations.--As a result of the findings of the study, 
     the Administrator may issue regulations imposing age, 
     altitude, or other restrictions on children flying aircraft.
                      TITLE VII--FAMILY ASSISTANCE

     SEC. 701. SHORT TITLE.

       This title may be cited as the ``Aviation Disaster Family 
     Assistance Act of 1996''.

     SEC. 702. ASSISTANCE BY NATIONAL TRANSPORTATION SAFETY BOARD 
                   TO FAMILIES OF PASSENGERS INVOLVED IN AIRCRAFT 
                   ACCIDENTS.

       (a) Authority To Provide Assistance.--
       (1) In general.--Subchapter III of chapter 11 is amended by 
     adding at the end the following:

     ``Sec. 1136. Assistance to families of passengers involved in 
       aircraft accidents

       ``(a) In General.--As soon as practicable after being 
     notified of an aircraft accident within the United States 
     involving an air carrier or foreign air carrier and resulting 
     in a major loss of life, the Chairman of the National 
     Transportation Safety Board shall--
       ``(1) designate and publicize the name and phone number of 
     a director of family support services who shall be an 
     employee of the Board and shall be responsible for acting as 
     a point of contact within the Federal Government for the 
     families of passengers involved in the accident and a liaison 
     between the air carrier or foreign air carrier and the 
     families; and
       ``(2) designate an independent nonprofit organization, with 
     experience in disasters and posttrauma communication with 
     families, which shall have primary responsibility for 
     coordinating the emotional care and support of the families 
     of passengers involved in the accident.
       ``(b) Responsibilities of the Board.--The Board shall have 
     primary Federal responsibility for facilitating the recovery 
     and identification of fatally-injured passengers involved in 
     an accident described in subsection (a).
       ``(c) Responsibilities of Designated Organization.--The 
     organization designated for an accident under subsection 
     (a)(2) shall have the following responsibilities with respect 
     to the families of passengers involved in the accident:
       ``(1) To provide mental health and counseling services, in 
     coordination with the disaster response team of the air 
     carrier or foreign air carrier involved.
       ``(2) To take such actions as may be necessary to provide 
     an environment in which the families may grieve in private.
       ``(3) To meet with the families who have traveled to the 
     location of the accident, to contact the families unable to 
     travel to such location, and to contact all affected families 
     periodically thereafter until such time as the organization, 
     in consultation with the director of family support services 
     designated for the accident under subsection (a)(1), 
     determines that further assistance is no longer needed.
       ``(4) To communicate with the families as to the roles of 
     the organization, government agencies, and the air carrier or 
     foreign air carrier involved with respect to the accident and 
     the post-accident activities.
       ``(5) To arrange a suitable memorial service, in 
     consultation with the families.
       ``(d) Passenger Lists.--
       ``(1) Requests for passenger lists.--
       ``(A) Requests by director of family support services.--It 
     shall be the responsibility of the director of family support 
     services designated for an accident under subsection (a)(1) 
     to request, as soon as practicable, from the air carrier or 
     foreign air carrier involved in the accident a list, which is 
     based on the best available information at the time of the 
     request, of the names of the passengers that were aboard the 
     aircraft involved in the accident.
       ``(B) Requests by designated organization.--The 
     organization designated for an accident under subsection 
     (a)(2) may request from the air carrier or foreign air 
     carrier involved in the accident a list described in 
     subparagraph (A).
       ``(2) Use of information.--The director of family support 
     services and the organization may not release to any person 
     information on a list obtained under paragraph (1) but may 
     provide information on the list about a passenger to the 
     family of the passenger to the extent that the director of 
     family support services or the organization considers 
     appropriate.
       ``(e) Continuing Responsibilities of the Board.--In the 
     course of its investigation of an accident described in 
     subsection (a), the Board shall, to the maximum extent 
     practicable, ensure that the families of passengers involved 
     in the accident--
       ``(1) are briefed, prior to any public briefing, about the 
     accident, its causes, and any other findings from the 
     investigation; and
       ``(2) are individually informed of and allowed to attend 
     any public hearings and meetings of the Board about the 
     accident.
       ``(f) Use of Air Carrier Resources.--To the extent 
     practicable, the organization designated for an accident 
     under subsection (a)(2) shall coordinate its activities with 
     the air carrier or foreign air carrier involved in the 
     accident so that the resources of the carrier can be used to 
     the greatest extent possible to carry out the organization's 
     responsibilities under this section.
       ``(g) Prohibited Actions.--
       ``(1) Actions to impede the board.--No person (including a 
     State or political subdivision) may impede the ability of the 
     Board (including the director of family support services 
     designated for an accident under subsection (a)(1)), or an 
     organization designated for an accident under subsection 
     (a)(2), to carry out its responsibilities under this section 
     or the ability of the families of passengers involved in the 
     accident to have contact with one another.
       ``(2) Unsolicited communications.--In the event of an 
     accident involving an air carrier providing interstate or 
     foreign air transportation, no unsolicited communication 
     concerning a potential action for personal injury or wrongful 
     death may be made by an attorney or any potential party to 
     the litigation to an individual injured in the accident, or 
     to a relative of an individual involved in the accident, 
     before the 30th day following the date of the accident.
       ``(h) Definitions.--In this section, the following 
     definitions apply:
       ``(1) Aircraft accident.--The term `aircraft accident' 
     means any aviation disaster regardless of its cause or 
     suspected cause.
       ``(2) Passenger.--The term `passenger' includes an employee 
     of an air carrier aboard an aircraft.''.
       (2) Conforming amendment.--The table of sections for such 
     chapter is amended by inserting after the item relating to 
     section 1135 the following:

``1136. Assistance to families of passengers involved in aircraft 
              accidents.''.

       (b) Penalties.--Section 1155(a)(1) of such title is 
     amended--
       (1) by striking ``or 1134(b) or (f)(1)'' and inserting ``, 
     section 1134(b), section 1134(f)(1), or section 1136(g)''; 
     and
       (2) by striking ``either of'' and inserting ``any of''.

     SEC. 703. AIR CARRIER PLANS TO ADDRESS NEEDS OF FAMILIES OF 
                   PASSENGERS INVOLVED IN AIRCRAFT ACCIDENTS.

       (a) In General.--Chapter 411 is amended by adding at the 
     end the following:

     ``Sec. 41113. Plans to address needs of families of 
       passengers involved in aircraft accidents

       ``(a) Submission of Plans.--Not later than 6 months after 
     the date of the enactment of this section, each air carrier 
     holding a certificate of public convenience and necessity 
     under section 41102 of this title shall submit to the 
     Secretary and the Chairman of the National Transportation 
     Safety Board a plan for addressing the needs of the families 
     of passengers involved in any aircraft accident involving an 
     aircraft of the air carrier and resulting in a major loss of 
     life.
       ``(b) Contents of Plans.--A plan to be submitted by an air 
     carrier under subsection (a) shall include, at a minimum, the 
     following:
       ``(1) A plan for publicizing a reliable, toll-free 
     telephone number, and for providing staff, to handle calls 
     from the families of the passengers.
       ``(2) A process for notifying the families of the 
     passengers, before providing any public notice of the names 
     of the passengers, either by utilizing the services of the 
     organization designated for the accident under section 
     1136(a)(2) of this title or the services of other suitably 
     trained individuals.
       ``(3) An assurance that the notice described in paragraph 
     (2) will be provided to the family of a passenger as soon as 
     the air carrier has verified that the passenger was aboard 
     the aircraft (whether or not the names of all of the 
     passengers have been verified) and, to the extent 
     practicable, in person.
       ``(4) An assurance that the air carrier will provide to the 
     director of family support services designated for the 
     accident under section 1136(a)(1) of this title, and to the 
     organization designated for the accident under section 
     1136(a)(2) of this title, immediately upon request, a list 
     (which is based on the best available information at the time 
     of the request) of the names of the passengers aboard the 
     aircraft (whether or not such names have been verified), and 
     will periodically update the list.
       ``(5) An assurance that the family of each passenger will 
     be consulted about the disposition of all remains and 
     personal effects of the passenger within the control of the 
     air carrier.
       ``(6) An assurance that if requested by the family of a 
     passenger, any possession of the passenger within the control 
     of the air carrier (regardless of its condition) will be 
     returned to the family unless the possession is needed for 
     the accident investigation or any criminal investigation.
       ``(7) An assurance that any unclaimed possession of a 
     passenger within the control of the air carrier will be 
     retained by the air carrier for at least 18 months.
       ``(8) An assurance that the family of each passenger will 
     be consulted about construction by the air carrier of any 
     monument to the passengers, including any inscription on the 
     monument.
       ``(9) An assurance that the treatment of the families of 
     nonrevenue passengers (and any other victim of the accident) 
     will be the same as the treatment of the families of revenue 
     passengers.
       ``(10) An assurance that the air carrier will work with any 
     organization designated under section 1136(a)(2) of this 
     title on an ongoing basis to ensure that families of 
     passengers receive an appropriate level of services and 
     assistance following each accident.
       ``(11) An assurance that the air carrier will provide 
     reasonable compensation to any organization designated under 
     section 1136(a)(2) of this title for services provided by the 
     organization.
       ``(12) An assurance that the air carrier will assist the 
     family of a passenger in traveling to the location of the 
     accident and provide for the physical care of the family 
     while the family is staying at such location.
       ``(13) An assurance that the air carrier will commit 
     sufficient resources to carry out the plan.
       ``(c) Certificate Requirement.--After the date that is 6 
     months after the date of the enactment of this section, the 
     Secretary may not approve an application for a certificate of 
     public convenience and necessity under section 41102 of this 
     title unless the applicant has included as part of such 
     application a plan that meets the requirements of subsection 
     (b).

[[Page H11304]]

       ``(d) Limitation on Liability.--An air carrier shall not be 
     liable for damages in any action brought in a Federal or 
     State court arising out of the performance of the air carrier 
     in preparing or providing a passenger list pursuant to a plan 
     submitted by the air carrier under subsection (b), unless 
     such liability was caused by conduct of the air carrier which 
     was grossly negligent or which constituted intentional 
     misconduct.
       ``(e) Aircraft Accident and Passenger Defined.--In this 
     section, the terms `aircraft accident' and `passenger' have 
     the meanings such terms have in section 1136 of this 
     title.''.
       (b) Conforming Amendment.--The table of sections for such 
     chapter is amended by adding at the end the following:

``41113. Plans to address needs of families of passengers involved in 
              aircraft accidents.''.

     SEC. 704. ESTABLISHMENT OF TASK FORCE.

       (a) Establishment.--The Secretary of Transportation, in 
     cooperation with the National Transportation Safety Board, 
     the Federal Emergency Management Agency, the American Red 
     Cross, air carriers, and families which have been involved in 
     aircraft accidents shall establish a task force consisting of 
     representatives of such entities and families, 
     representatives of air carrier employees, and representatives 
     of such other entities as the Secretary considers 
     appropriate.
       (b) Guidelines and Recommendations.--The task force 
     established pursuant to subsection (a) shall develop--
       (1) guidelines to assist air carriers in responding to 
     aircraft accidents;
       (2) recommendations on methods to ensure that attorneys and 
     representatives of media organizations do not intrude on the 
     privacy of families of passengers involved in an aircraft 
     accident;
       (3) recommendations on methods to ensure that the families 
     of passengers involved in an aircraft accident who are not 
     citizens of the United States receive appropriate assistance;
       (4) recommendations on methods to ensure that State mental 
     health licensing laws do not act to prevent out-of-state 
     mental health workers from working at the site of an aircraft 
     accident or other related sites;
       (5) recommendations on the extent to which military experts 
     and facilities can be used to aid in the identification of 
     the remains of passengers involved in an aircraft accident; 
     and
       (6) recommendations on methods to improve the timeliness of 
     the notification provided by air carriers to the families of 
     passengers involved in an aircraft accident, including--
       (A) an analysis of the steps that air carriers would have 
     to take to ensure that an accurate list of passengers on 
     board the aircraft would be available within 1 hour of the 
     accident and an analysis of such steps to ensure that such 
     list would be available within 3 hours of the accident;
       (B) an analysis of the added costs to air carriers and 
     travel agents that would result if air carriers were required 
     to take the steps described in subparagraph (A);
       (C) an analysis of any inconvenience to passengers, 
     including flight delays, that would result if air carriers 
     were required to take the steps described in subparagraph 
     (A); and
       (D) an analysis of the implications for personal privacy 
     that would result if air carriers were required to take the 
     steps described in subparagraph (A).
       (c) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Secretary shall transmit to 
     Congress a report containing the model plan and 
     recommendations developed by the task force under subsection 
     (b).

     SEC. 705. LIMITATION ON STATUTORY CONSTRUCTION.

       Nothing in this title or any amendment made by this title 
     may be construed as limiting the actions that an air carrier 
     may take, or the obligations that an air carrier may have, in 
     providing assistance to the families of passengers involved 
     in an aircraft accident.
                 TITLE VIII--AIRPORT REVENUE PROTECTION

     SEC. 801. SHORT TITLE.

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

     SEC. 802. FINDINGS; PURPOSE.

       (a) In General.--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. 803. DEFINITIONS.

       For purposes of this title, the following definitions 
     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. 804. RESTRICTION ON USE OF AIRPORT REVENUES.

       (a) In General.--Subchapter I of chapter 471, as amended by 
     section 142 of this Act, is further amended by adding after 
     section 47132 the following:

     ``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) Penalties.--Section 46301(a)(5) is amended to read as 
     follows:
       ``(5) Penalty for diversion of aviation revenues.--The 
     amount of a civil penalty assessed under this section for a 
     violation of section 47107(b) of this title (or any assurance 
     made under such section) or section 47133 of this title may 
     be increased above the otherwise applicable maximum amount 
     under this section to an amount not to exceed 3 times the 
     amount of revenues that are used in violation of such 
     section.''.
       (c) Conforming Amendment.--The table of sections for such 
     subchapter is amended by inserting after the item relating to 
     section 47132, as added by section 142 of this Act, the 
     following:

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

     SEC. 805. REGULATIONS; AUDITS AND ACCOUNTABILITY.

       (a) In General.--Section 47107 is amended by adding at the 
     end the following:
       ``(m) Audit Certification.--
       ``(1) In general.--The Secretary of Transportation, acting 
     through the Administrator of the Federal Aviation 
     Administration, 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

[[Page H11305]]

       ``(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 apportionment 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)).
       ``(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 sponsor 
     under paragraph (4) (including any amount of interest 
     calculated under subsection (o)).
       ``(7) Statute of limitations.--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 
     the 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:
       ``(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. 806. 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) by adding at the end of subsection (d) the following:
       ``(5) 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.''.
               TITLE IX--METROPOLITAN WASHINGTON AIRPORTS

     SEC. 901. SHORT TITLE.

       This title may be cited as the ``Metropolitan Washington 
     Airports Amendments Act of 1996''.

     SEC. 902. USE OF LEASED PROPERTY.

       Section 6005(c)(2) of the Metropolitan Washington Airports 
     Act of 1986 (49 U.S.C. App. 2454(c)(2)) is amended by 
     inserting before the period at the end of the second sentence 
     the following: ``which are not inconsistent with the needs of 
     aviation''.

     SEC. 903. BOARD OF DIRECTORS.

       (a) Appointment of Additional Members.--Section 6007(e)(1) 
     of the Metropolitan Washington Airports Act of 1986 (49 
     U.S.C. App. 2456(e)(1)) is amended--
       (1) in the matter preceding subparagraph (A) by striking 
     ``11'' and inserting ``13'';
       (2) in subparagraph (D) by striking ``one member'' and 
     inserting ``three members''.
       (b) Restrictions.--Section 6007(e)(2) of the Metropolitan 
     Washington Airports Act of 1986 (49 U.S.C. App. 2456(e)(2)) 
     is amended by striking ``except that'' and all that follows 
     through the period and inserting ``except that the members 
     appointed by the President shall be registered voters of 
     States other than Maryland, Virginia, or the District of 
     Columbia.''.
       (c) Terms.--Section 6007(e)(3) of the Metropolitan 
     Washington Airports Act of 1986 (49 U.S.C. App. 2456(e)(3)) 
     is amended--
       (1) in subparagraph (B) by striking ``and'' at the end;
       (2) in subparagraph (C) by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(D) by the President after the date of the enactment of 
     this subparagraph, 1 shall be appointed for 4 years.

     A member may serve after the expiration of that member's term 
     until a successor has taken office.''.
       (d) Vacancies.--Section 6007(e) of the Metropolitan 
     Washington Airports Act of 1986 (49 U.S.C. App. 2456(e)) is 
     amended by redesignating paragraphs (4) and (5) as paragraphs 
     (8) and (9), respectively, and by inserting after paragraph 
     (3) the following:
       ``(4) Vacancies.--A vacancy in the board of directors shall 
     be filled in the manner in which the original appointment was 
     made. Any member appointed to fill a vacancy occurring before 
     the expiration of the term for which the member's predecessor 
     was appointed shall be appointed only for the remainder of 
     such term.''.
       (e) Political Parties of Presidential Appointees.--Section 
     6007(e) of the Metropolitan Washington Airports Act of 1986 
     (49 U.S.C. App. 2456(e)) is amended by inserting after 
     paragraph (4), as inserted by subsection (d) of this section, 
     the following:
       ``(5) Political parties of presidential appointees.--Not 
     more than 2 of the members of the board appointed by the 
     President may be of the same political party.''.
       (f) Duties of Presidential Appointees.--Section 6007(e) of 
     the Metropolitan Washington Airports Act of 1986 (49 U.S.C. 
     App. 2456(e)) is amended by inserting after paragraph (5), as 
     inserted by subsection (e) of this section, the following:
       ``(6) Duties of presidential appointees.--In carrying out 
     their duties on the board, members of the board appointed by 
     the President shall ensure that adequate consideration is 
     given to the national interest.''.
       (g) Deadline for Presidential Appointments.--Section 
     6007(e) of the Metropolitan Washington Airports Act of 1986 
     (49 U.S.C. App. 2456(e)) is amended by inserting after 
     paragraph (6), as inserted by subsection (f) of this section, 
     the following:
       ``(7) Deadline for presidential appointments.--
       ``(A) Deadline.--The members to be appointed to the board 
     by the President under section 6007(e)(1)(D) shall be 
     appointed on or before September 30, 1997.
       ``(B) Applicability of limitations.--If the deadline of 
     subparagraph (A) is not met, the Secretary and the Airports 
     Authority shall be subject to the limitations described in 
     subsection (i) for the period beginning on October 1, 1997, 
     and ending on the first day on which all of the

[[Page H11306]]

     members referred to in subparagraph (A) have been 
     appointed.''.
       (h) Required Number of Votes.--Section 6007(e)(9) of the 
     Metropolitan Washington Airports Act of 1986 (49 U.S.C. App. 
     2456(e)(9)), as redesignated by subsection (d) of this 
     section, is amended by striking ``Seven'' and inserting 
     ``Eight''.

     SEC. 904. TERMINATION OF BOARD OF REVIEW.

       (a) In General.--Section 6007 of the Metropolitan 
     Washington Airports Act of 1986 (49 U.S.C. App. 2456) is 
     amended by striking subsections (f) and (h) and redesignating 
     subsections (g) and (i) as subsections (f) and (g), 
     respectively.
       (b) Staff.--Section 6007 of the Metropolitan Washington 
     Airports Act of 1986 (49 U.S.C. App. 2456) is amended--
       (1) by inserting paragraph (8) of subsection (f), as in 
     effect before the amendment made by subsection (a) of this 
     section, after subsection (g), as redesignated by such 
     subsection (a);
       (2) by moving such paragraph 2 ems to the left and 
     redesignating such paragraph as subsection (h); and
       (3) in subsection (h), as so redesignated--
       (A) in the first sentence by striking ``The Board of 
     Review'' and inserting ``To assist the Secretary in carrying 
     out this Act, the Secretary''; and
       (B) in the second sentence by striking ``Board'' and 
     inserting ``Secretary''.
       (c) Conforming Amendments.--The Metropolitan Washington 
     Airports Act of 1986 (49 U.S.C. App. 2451 et seq.) is 
     amended--
       (1) in section 6009(b) by striking ``or by reason'' and all 
     that follows before the period; and
       (2) in section 6011 by striking ``Except as provided in 
     section 6007(h), if'' and inserting ``If''.
       (d) Protection of Certain Actions.--Actions taken by the 
     Metropolitan Washington Airports Authority and required to be 
     submitted to the Board of Review pursuant to section 
     6007(f)(4) of the Metropolitan Washington Airports Act of 
     1986 before the date of the enactment of this Act shall 
     remain in effect and shall not be set aside solely by reason 
     of a judicial order invalidating certain functions of the 
     Board of Review.

     SEC. 905. LIMITATIONS.

       Section 6007 of the Metropolitan Washington Airports Act of 
     1986 (49 U.S.C. App. 2456) is further amended by adding at 
     the end the following:
       ``(i) Limitations.--After October 1, 2001--
       ``(1) the Secretary may not approve an application of the 
     Airports Authority for an airport development project grant 
     under subchapter I of chapter 471 of title 49, United States 
     Code; and
       ``(2) the Secretary may not approve an application of the 
     Airports Authority to impose a passenger facility fee under 
     section 40117 of such title.''.

     SEC. 906. USE OF DULLES AIRPORT ACCESS HIGHWAY.

       The Metropolitan Washington Airports Act of 1986 (49 U.S.C. 
     App. 2451 et seq.) is further amended by adding at the end 
     the following:

     ``SEC. 6013. USE OF DULLES AIRPORT ACCESS HIGHWAY.

       ``(a) Restrictions.--Except as provided by subsection (b), 
     the Airports Authority shall continue in effect and enforce 
     paragraphs (1) and (2) of section 4.2 of the Metropolitan 
     Washington Airports Regulations, as in effect on February 1, 
     1995.
       ``(b) Enforcement.--The district courts of the United 
     States shall have jurisdiction to compel the Airports 
     Authority and its officers and employees to comply with the 
     requirements of this section. An action may be brought on 
     behalf of the United States by the Attorney General or by any 
     aggrieved party.''.

     SEC. 907. EFFECT OF JUDICIAL ORDER.

       The Metropolitan Washington Airports Act of 1986 (49 U.S.C. 
     App. 2451 et seq.) is further amended by adding at the end 
     the following:

     ``SEC. 6014. EFFECT OF JUDICIAL ORDER.

       ``If any provision of the Metropolitan Washington Airports 
     Amendments Act of 1996 or the amendments made by such Act (or 
     the application of that provision to any person, 
     circumstance, or venue) is held invalid by a judicial order, 
     on the day after the date of the issuance of such order, and 
     thereafter, the Secretary of Transportation and the 
     Metropolitan Washington Airports Authority shall be subject 
     to the limitations described in section 6007(i) of this 
     Act.''.

     SEC. 908. AMENDMENT OF LEASE.

       The Secretary of Transportation shall amend the lease 
     entered into with the Metropolitan Washington Airports 
     Authority under section 6005(a) of the Metropolitan 
     Washington Airports Authority Act of 1986 to secure the 
     Airports Authority's consent to the amendments made to such 
     Act by this title.

     SEC. 909. SENSE OF THE SENATE.

       It is the sense of the Senate that the Metropolitan 
     Washington 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.
    TITLE X--EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURES

     SEC. 1001. EXTENSION OF AIRPORT AND AIRWAY TRUST FUND 
                   EXPENDITURES.

       (a) Extension of Expenditure Authority.--Paragraph (1) of 
     section 9502(d) of the Internal Revenue Code of 1986 is 
     amended by striking ``October 1, 1996'' and inserting 
     ``October 1, 1998''.
       (b) Extension of Trust Fund Purposes.--Subparagraph (A) of 
     section 9502(d)(1) of such Code is amended by inserting 
     before the semicolon at the end ``or the Federal Aviation 
     Reauthorization Act of 1996''.
          TITLE XI--FAA RESEARCH, ENGINEERING, AND DEVELOPMENT

     SEC. 1101. SHORT TITLE.

       This title may be cited as the ``FAA Research, Engineering, 
     and Development Management Reform Act of 1996''.

     SEC. 1102. AUTHORIZATION OF APPROPRIATIONS.

       Section 48102(a) is amended--
       (1) by striking ``and'' at the end of paragraph (1)(J);
       (2) by striking the period at the end of paragraph (2)(J) 
     and inserting in lieu thereof ``; and''; and
       (3) by adding at the end the following:
       ``(3) for fiscal year 1997--
       ``(A) $13,660,000 for system development and infrastructure 
     projects and activities;
       ``(B) $34,889,000 for capacity and air traffic management 
     technology projects and activities;
       ``(C) $19,000,000 for communications, navigation, and 
     surveillance projects and activities;
       ``(D) $13,000,000 for weather projects and activities;
       ``(E) $5,200,000 for airport technology projects and 
     activities;
       ``(F) $36,504,000 for aircraft safety technology projects 
     and activities;
       ``(G) $57,055,000 for system security technology projects 
     and activities;
       ``(H) $23,504,000 for human factors and aviation medicine 
     projects and activities;
       ``(I) $3,600,000 for environment and energy projects and 
     activities; and
       ``(J) $2,000,000 for innovative/cooperative research 
     projects and activities.''.

     SEC. 1103. RESEARCH PRIORITIES.

       Section 48102(b) is amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by striking ``Availability for Research.--(1)'' and 
     inserting in lieu thereof ``Research Priorities.--(1) The 
     Administrator shall consider the advice and recommendations 
     of the research advisory committee established by section 
     44508 of this title in establishing priorities among major 
     categories of research and development activities carried out 
     by the Federal Aviation Administration.
       ``(2)''.

     SEC. 1104. RESEARCH ADVISORY COMMITTEE.

       Section 44508(a)(1) is amended--
       (1) by striking ``and'' at the end of subparagraph (B);
       (2) by striking the period at the end of subparagraph (C) 
     and inserting in lieu thereof ``; and''; and
       (3) by inserting after subparagraph (C) the following:
       ``(D) annually review the allocation made by the 
     Administrator of the amounts authorized by section 48102(a) 
     of this title among the major categories of research and 
     development activities carried out by the Administration and 
     provide advice and recommendations to the Administrator on 
     whether such allocation is appropriate to meet the needs and 
     objectives identified under subparagraph (A).''.

     SEC. 1105. NATIONAL AVIATION RESEARCH PLAN.

       Section 44501(c) is amended--
       (1) in paragraph (2)(A) by striking ``15-year'' and 
     inserting in lieu thereof ``5-year'';
       (2) by amending subparagraph (B) to read as follows:
       ``(B) The plan shall--
       ``(i) provide estimates by year of the schedule, cost, and 
     work force levels for each active and planned major research 
     and development project under sections 40119, 44504, 44505, 
     44507, 44509, 44511-44513, and 44912 of this title, including 
     activities carried out under cooperative agreements with 
     other Federal departments and agencies;
       ``(ii) specify the goals and the priorities for allocation 
     of resources among the major categories of research and 
     development activities, including the rationale for the 
     priorities identified;
       ``(iii) identify the allocation of resources among long-
     term research, near-term research, and development 
     activities; and
       ``(iv) highlight the research and development activities 
     that address specific recommendations of the research 
     advisory committee established under section 44508 of this 
     title, and document the recommendations of the committee that 
     are not accepted, specifying the reasons for 
     nonacceptance.''; and
       (3) in paragraph (3) by inserting ``, including a 
     description of the dissemination to the private sector of 
     research results and a description of any new technologies 
     developed'' after ``during the prior fiscal year''.
                  TITLE XII--MISCELLANEOUS PROVISIONS

     SEC. 1201. PURCHASE 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) Purchase of Housing Units.--
       ``(1) Authority.--In carrying out this part, the 
     Administrator may purchase a housing unit (including a 
     condominium or a housing unit in a building owned by a 
     cooperative) that is located outside the contiguous United 
     States if the cost of the unit is $300,000 or less.
       ``(2) Adjustments for inflation.--For fiscal years 
     beginning after September 30, 1997, the Administrator may 
     adjust the dollar amount specified in paragraph (1) to take 
     into account increases in local housing costs.
       ``(3) Continuing obligations.--Notwithstanding section 1341 
     of title 31, the Administrator may purchase 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.

[[Page H11307]]

       ``(4) Certification to congress.--The Administrator may 
     purchase a housing unit under paragraph (1) only if, at least 
     30 days before completing the purchase, 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 a report containing--
       ``(A) a description of the housing unit and its price;
       ``(B) a certification that the price does not exceed the 
     median price of housing units in the area; and
       ``(C) a certification that purchasing the housing unit is 
     the most cost-beneficial means of providing necessary 
     accommodations in carrying out this part.
       ``(5) Payment of fees.--The Administrator may pay, when 
     due, fees resulting from the purchase of a housing unit under 
     this subsection from any amounts made available to the 
     Administrator.''.

     SEC. 1202. CLARIFICATION OF PASSENGER FACILITY REVENUES AS 
                   CONSTITUTING TRUST FUNDS.

       Section 40117(g) is amended by adding at the end the 
     following:
       ``(4) Passenger facility revenues that are held by an air 
     carrier or an agent of the carrier after collection of a 
     passenger facility fee constitute a trust fund that is held 
     by the air carrier or agent for the beneficial interest of 
     the eligible agency imposing the fee. Such carrier or agent 
     holds neither legal nor equitable interest in the passenger 
     facility revenues except for any handling fee or retention of 
     interest collected on unremitted proceeds as may be allowed 
     by the Secretary.''.

     SEC. 1203. AUTHORITY TO CLOSE AIRPORT LOCATED NEAR CLOSED OR 
                   REALIGNED MILITARY BASE.

       Notwithstanding any other provision of a law, rule, or 
     grant assurance, an airport that is not a commercial service 
     airport may be closed by its sponsor without any obligation 
     to repay grants made under chapter 471 of title 49, United 
     States Code, the Airport and Airway Improvement Act of 1982, 
     or any other law if the airport is located within 2 miles of 
     a United States Army depot which has been closed or 
     realigned; except that in the case of disposal of the land 
     associated with the airport, the part of the proceeds from 
     the disposal that is proportional to the Government's share 
     of the cost of acquiring the land shall be paid to the 
     Secretary of Transportation for deposit in the Airport and 
     Airway Trust Fund established under section 9502 of the 
     Internal Revenue Code of 1986 (26 U.S.C. 9502).

     SEC. 1204. 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 conveyance 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 of such interest (as 
     determined pursuant to regulations issued by the Secretary).
       (2) Any such amount so received by the city shall be used 
     by the city for the development, improvement, operation, or 
     maintenance of a public airport, lands (including any 
     improvements thereto) which produce revenues that are used 
     for airport development purposes, or both.

     SEC. 1205. REGULATIONS AFFECTING INTRASTATE AVIATION IN 
                   ALASKA.

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

     SEC. 1206. WESTCHESTER COUNTY AIRPORT, NEW YORK.

       Notwithstanding sections 47107(b) and 47133 of title 49, 
     United States Code, and any other law, regulation, or grant 
     assurance, all fees received by Westchester County Airport in 
     the State of New York may be paid into the treasury of 
     Westchester County pursuant to section 119.31 of the 
     Westchester County Charter if the Secretary finds that the 
     expenditures from such treasury for the capital and operating 
     costs of the Airport after December 31, 1990, have been and 
     will be equal to or greater than the fees that such treasury 
     receives from the Airport.

     SEC. 1207. BEDFORD AIRPORT, PENNSYLVANIA.

       If the Administrator of the Federal Aviation Administration 
     decommissions an instrument landing system in Pennsylvania, 
     the Administrator may transfer and install the system at 
     Bedford Airport, Pennsylvania.

     SEC. 1208. WORCESTER MUNICIPAL AIRPORT, MASSACHUSETTS.

       The Administrator of the Federal Aviation Administration 
     shall take such actions as may be necessary to improve the 
     safety of aircraft landing at Worcester Municipal Airport, 
     Massachusetts, including, if appropriate, providing air 
     traffic radar service to such airport from the Providence 
     Approach Radar Control in Coventry, Rhode Island.

     SEC. 1209. CENTRAL FLORIDA AIRPORT, SANFORD, FLORIDA.

       The Administrator of the Federal Aviation Administration 
     shall take such actions as may be necessary to improve the 
     safety of aircraft landing at Central Florida Airport, 
     Sanford, Florida, including, if appropriate, providing a new 
     instrument landing system on Runway 27R.

     SEC. 1210. AIRCRAFT NOISE OMBUDSMAN.

       Section 106, as amended by section 230 of this Act, is 
     further amended by adding at the end the following:
       ``(q) Aircraft Noise Ombudsman.--
       ``(1) Establishment.--There shall be in the Administration 
     an Aircraft Noise Ombudsman.
       ``(2) General duties and responsibilities.--The Ombudsman 
     shall--
       ``(A) be appointed by the Administrator;
       ``(B) serve as a liaison with the public on issues 
     regarding aircraft noise; and
       ``(C) be consulted when the Administration proposes changes 
     in aircraft routes so as to minimize any increases in 
     aircraft noise over populated areas.
       ``(3) Number of full-time equivalent employees.--The 
     appointment of an Ombudsman under this subsection shall not 
     result in an increase in the number of full-time equivalent 
     employees in the Administration.''.

     SEC. 1211. SPECIAL RULE FOR PRIVATELY OWNED RELIEVER 
                   AIRPORTS.

       Section 47109 is amended by adding at the end the 
     following:
       ``(c) Special Rule for Privately Owned Reliever Airports.--
     If a privately owned reliever airport contributes any lands, 
     easements, or rights-of-way to carry out a project under this 
     subchapter, the current fair market value of such lands, 
     easements, or rights-of-way shall be credited toward the non-
     Federal share of allowable project costs.''.

     SEC. 1212. SENSE OF THE SENATE REGARDING THE FUNDING OF THE 
                   FEDERAL AVIATION ADMINISTRATION.

       (a) Findings.--The Senate finds that--
       (1) 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) aviation excise taxes that constitute the Airport and 
     Airway Trust Fund, which provides most of the funding for the 
     Federal Aviation Administration, have expired;
       (3) the surplus in the Airport and Airway Trust Fund will 
     be spent by the Federal Aviation Administration by December 
     1996;
       (4) the existing system of funding the Federal Aviation 
     Administration will not provide the agency with sufficient 
     short-term or long-term funding;
       (5) 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
       (6) without immediate action by 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. 1213. 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) analyze--
       (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;
       (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) where such replacement occurred, any corresponding 
     decreases in available seat capacity for consumers at the 
     airports referred to in that subparagraph.
       (c) Report.--Not later than 60 days after the date of the 
     enactment of this Act, the Secretary shall submit a final 
     report on the study carried

[[Page H11308]]

     out under subsection (a) to the Committee on Commerce, 
     Science, and Transportation of the Senate and the Committee 
     on Transportation and Infrastructure of the House of 
     Representatives.
       (d) Definitions.--For purposes of this section, the 
     following definitions apply:
       (1) Adjusted air fare.--The term ``adjusted air fare'' 
     means an actual air fare that is adjusted for distance 
     traveled by a passenger.
       (2) Air carrier.--The term ``air carrier'' is defined in 
     section 40102(a)(2) of title 49, United States Code.
       (3) Airport.--The term ``airport'' is defined in section 
     40102(9) of such title.
       (4) Commercial air carrier.--The term ``commercial air 
     carrier'' means an air carrier that provides air 
     transportation for commercial purposes (as determined by the 
     Secretary).
       (5) Hub airport.--The term ``hub airport'' is defined in 
     section 41731(a)(2) of such title.
       (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.

     SEC. 1214. 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 C.F.R. 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. 1215. SPECIAL FLIGHT RULES IN THE VICINITY OF GRAND 
                   CANYON NATIONAL PARK.

       The Secretary of Transportation, acting through the 
     Administrator of the Federal Aviation Administration, shall 
     take such action as may be necessary to provide 45 additional 
     days for comment by interested persons on the special flight 
     rules in the vicinity of Grand Canyon National Park and the 
     Draft Environmental Assessment described in the notice of 
     proposed rulemaking issued on July 31, 1996, at 61 Fed. Reg. 
     40120 et seq.

     SEC. 1216. TRANSFER OF AIR TRAFFIC CONTROL TOWER; CLOSING OF 
                   FLIGHT SERVICE STATIONS.

       (a) Hickory, North Carolina Tower.--
       (1) Transfer.--The Administrator of the Federal Aviation 
     Administration may transfer any title, right, or interest the 
     United States has in the air traffic control tower located at 
     the Hickory Regional Airport to the City of Hickory, North 
     Carolina, for the purpose of enabling the city to provide air 
     traffic control services to operators of aircraft.
       (2) Study.--The Administrator shall conduct a study to 
     determine whether the number of operations at Hickory 
     Regional Airport meet the criteria for contract towers and 
     shall certify in writing to the Committee on Commerce, 
     Science, and Transportation of the Senate and the Committee 
     on Commerce and Infrastructure of the House of 
     Representatives whether that airport meets those criteria.
       (b) New Bern-Craven County Station.--The Administrator 
     shall not close the New Bern-Craven County flight services 
     station or the Hickory Regional Airport flight service 
     station unless the Administrator certifies in writing to the 
     Committee on Commerce, Science, and Transportation of the 
     Senate and the Committee on Transportation and Infrastructure 
     of the House of Representatives that such closure will not 
     result in a degradation of air safety and that it will reduce 
     costs to taxpayers.
       (c) Pierre, South Dakota Station.--The Administrator shall 
     not close the Pierre, South Dakota Regional Airport flight 
     service station unless following the 180th day after the date 
     of the enactment of this Act the Administrator certifies in 
     writing to the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on 
     Transportation and Infrastructure of the House of 
     Representatives that such closure will not result in a 
     degradation of air safety, air service, or the loss of 
     meteorological services or data that cannot otherwise be 
     obtained in a more cost-effective manner, and that it will 
     reduce costs to taxpayers.

     SEC. 1217. LOCATION OF DOPPLER RADAR STATIONS, NEW YORK.

       (a) Study.--The Administrator of the Federal Aviation 
     Administration shall conduct a study of the feasibility of 
     constructing 2 offshore platforms to serve as sites for the 
     location of Doppler radar stations for John F. Kennedy 
     International Airport and LaGuardia Airport in New York City, 
     New York.
       (b) Report.--Not later than 90 days after the date of the 
     enactment of this Act, the Administrator shall transmit to 
     Congress a report on the results of the study conducted under 
     subsection (a), including proposed locations for the offshore 
     platforms. Such locations shall be as far as possible from 
     populated areas while providing appropriate safety measures 
     for John F. Kennedy International Airport and LaGuardia 
     Airport.

     SEC. 1218. TRAIN WHISTLE REQUIREMENTS.

       (a) In General.--Section 20153 is amended by adding at the 
     end the following:
       ``(i) Regulations.--In issuing regulations under this 
     section, the Secretary--
       ``(1) shall take into account the interest of communities 
     that--
       ``(A) have in effect restrictions on the sounding of a 
     locomotive horn at highway-rail grade crossings; or
       ``(B) have not been subject to the routine (as defined by 
     the Secretary) sounding of a locomotive horn at highway-rail 
     grade crossings;
       ``(2) shall work in partnership with affected communities 
     to provide technical assistance and shall provide a 
     reasonable amount of time for local communities to install 
     supplementary safety measures, taking into account local 
     safety initiatives (such as public awareness initiatives and 
     highway-rail grade crossing traffic law enforcement programs) 
     subject to such terms and condition as the Secretary deems 
     necessary, to protect public safety; and
       ``(3) may waive (in whole or in part) any requirement of 
     this section (other than a requirement of this subsection or 
     subsection (j)) that the Secretary determines is not likely 
     to contribute significantly to public safety.
       ``(j) Effective Date of Regulations.--Any regulations under 
     this section shall not take effect before the 365th day 
     following the date of publication of the final rule.''.

     SEC. 1219. INCREASED FEES.

       (a) In General.--Notwithstanding any other provision of 
     law, the Surface Transportation Board shall not increase fees 
     for services to be collected from small shippers in 
     connection with rail maximum rate complaints pursuant to part 
     1002 of title 49, Code of Federal Regulations, Ex Parte No. 
     542.
       (b) Applicability.--Subsection (a) shall no longer be 
     effective after September 30, 1998.

     SEC. 1220. STRUCTURES INTERFERING WITH AIR COMMERCE.

       (a) Landfills.--Section 44718 is amended by adding at the 
     end the following:
       ``(d) Landfills.--For the purposes of enhancing aviation 
     safety, in a case in which 2 landfills have been proposed to 
     be constructed or established within 6 miles of a commercial 
     service airport with fewer than 50,000 enplanements per year, 
     no person shall construct or establish either landfill if an 
     official of the Federal Aviation Administration has stated in 
     writing within the 3-year period ending on the date of the 
     enactment of this subsection that 1 of the landfills would be 
     incompatible with aircraft operations at the airport, unless 
     the landfill is already active on such date of enactment or 
     the airport operator agrees to the construction or 
     establishment of the landfill.''.
       (b) Civil Penalties.--Section 46301 is amended by inserting 
     ``44718(d),'' after ``44716,'' in each of subsections 
     (a)(1)(A), (d)(2), and (f)(1)(A)(i).

     SEC. 1221. HAWAII CARGO.

       Notwithstanding any other provision of law, and for a 
     period that shall not extend beyond September 30, 1998, an 
     air carrier which commenced all-cargo turnaround service 
     during November 1995 with Stage 2 aircraft with a maximum 
     weight of more than 75,000 pounds may operate no more than 
     one Stage 2 aircraft in all-cargo turnaround service and may 
     also maintain a second such aircraft in reserve. The reserve 
     aircraft may only be used as a replacement aircraft when the 
     first aircraft is not airworthy or is unavailable due to 
     closure of an airport at which the first aircraft is located 
     in the State of Hawaii.

     SEC. 1222. 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 that 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.''.

     SEC. 1223. CLARIFYING AMENDMENT.

       Section 1 of the Railway Labor Act (45 U.S.C. 151) is 
     amended by inserting ``, any express company that would have 
     been subject to subtitle IV of title 49, United States Code, 
     as of December 31, 1995,'' after ``Board'' the first place it 
     appears in the first paragraph.
       And the Senate agree to the same.

     From the Committee on Transportation and Infrastructure, for 
     consideration of the House bill (except section 501) and the 
     Senate amendment (except section 1001), and modifications 
     committed to conference:
     Bud Shuster,
     Bill Clinger,
     John J. Duncan, Jr.,
     From the Committee on Transportation and Infrastructure, for 
     consideration of section 501 of the House bill and section 
     1001 of the Senate amendment, and modifications committed to 
     conference:
     Bud Shuster,
     Bill Clinger,
     As additional conferees from the Committee on Rules, for 
     consideration of section 675 of the Senate bill, and 
     modifications committed to conference:
     David Dreier,
     John Linder,
     As additional conferees from the Committee on Science, for 
     consideration of sections 601-05 of the House bill, and 
     section 103 of the Senate amendment, and modifications 
     committed to conference:
     Robert S. Walker,
     Connie Morella,
     As additional conferees from the Committee on Science, for 
     consideration of section 501 of the Senate amendment and 
     modifications committed to conference:

[[Page H11309]]

     Robert S. Walker,
     F. James Sensenbrenner, Jr.,
     As additional conferees from the Committee on Ways and Means, 
     for the consideration of section 501 of the House bill, and 
     sections 417, 906, and 1001 of the Senate amendment and 
     modifications committed to conference:
     Bill Archer,
     Phil Crane,
     Sam M. Gibbons,
                                Managers on the Part of the House.

     Larry Pressler,
     Ted Stevens,
     John McCain,
     Fritz Hollings,
     Wendell H. Ford,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 3539) to amend 
     title 49, United States Code, to reauthorize programs of the 
     Federal Aviation Administration, and for other purposes, 
     submit the following joint statement to the House and the 
     Senate in explanation of the effect of the action agreed upon 
     by the managers and recommended in the accompanying 
     conference report:
       The Senate amendment struck all of the House bill after the 
     enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment that is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clerical 
     changes.


                             1. Short Title

     House bill
       Section 1: ``Federal Aviation Authorization Act of 1996''.
     Senate amendment
       Section 1: ``Federal Aviation Reauthorization Act of 
     1996''.
     Conference substitute
       Section 1: Senate provision.


                       2. Amendments to Title 49

     House bill
       Section 2: States that Amendments in this Act are to Title 
     49.
     Senate amendment
       Section 2: Same provision.
     Conference substitute
       Section 2: Same provision.


                            3. applicability

     House bill
       Section 3: This bill applies only after September 30, 1996.
     Senate amendment
       No provision.
     Conference substitute
       Section 3: House provision.


                          4. aip authorization

     House bill
       Section 101:
       FY 97--$2.28 billion.
       FY 98--$2.347 billion.
       FY 99--$2.412 billion.
       Removes cumulative totals.
     Senate amendment
       Section 104: FY 97--$2.28 billion.
     Conference substitute
       Section 101: House provision, but only for 2 years. The AIP 
     formula changes discussed below also expire after two years.


                          5. f&e authorization

     House bill
       Section 102:
       FY 97--$2.068 billion.
       FY 98--$2.129 billion.
       FY 99--$2.191 billion.
       Changes heading for section.
     Senate amendment
       Section 102: FY 97--$1.8 billion.
     Conference substitute
       Section 102: House provision, but only for 2 years.
       The Managers note that the Laser Visual Guidance Systems 
     (LVGS) is a laser based guidance system that has been tested 
     extensively by the Navy and suggest that FAA consider this 
     system for utilization in the National Airspace System (NAS). 
     The Conferees further suggest that the FAA work with the 
     manufacturer to evaluate the fitness of the system for 
     possible certification under 14 FAR Part 171.
       The Secretary of Transportation should take such actions as 
     may be necessary to replace the FAA Control Tower at Syracuse 
     Hancock International Airport in Syracuse, New York. All 
     design and engineering work on the Replacement Control Tower 
     has been completed and the Managers understand that this 
     project is the top priority of the FAA's Eastern Region.


                      6. operations authorization

     House bill
       Section 103:
       FY 97--$5.158 billion.
       FY 98--$5.344 billion.
       FY 99--$5.538 billion.
       Extends for 3 years the limit on spending Trust Fund money 
     for operations. Changes heading of section. No change in 
     Trust Fund share.
     Senate amendment
       Section 101:
       FY 97--$5 billion.
       Removes limit on spending Trust Fund money on operations. 
     Raises Trust Fund share from 70% to 75%.
     Conference substitute
       Section 103: House, except for 2 years and the Trust Fund 
     share is raised to 72.5%.


                      7. interaccount flexibility

     House bill
       No provision.
     Senate amendment
       Section 105: Permits the Administrator to transfer budget 
     authority among the Operations, F&E, and RE&D appropriations 
     accounts. Transfers of budget authority could not be made if 
     outlays would exceed the aggregate estimated outlays. A 
     transfer also could not result in a net decrease of more than 
     5 percent, or a net increase of more than 10 percent, in 
     budget authority available under any appropriation involved 
     in that transfer. Any transfer would be treated as a 
     reprogramming of funds and could only occur after the FAA 
     submitted a report to the appropriate authorizing and 
     appropriating committees of Congress. Each committee would 
     have 30 days to object to any transfer.
     Conference substitute
       House.


                        8. passenger entitlement

     House bill
       Section 201(a)(1): Same as current law except that airports 
     receive 50 cents per passenger for each passenger over a 
     million.
     Senate amendment
       No provision.
     Conference substitute
       Section 121(a): House provision.


                          9. CARGO ENTITLEMENT

     House bill
       Section 210(a)(2): Entitlement changed to 2.5%. Airports 
     that do not meet landed-weight minimum can still get grant 
     under this entitlement if Secretary finds that airport will 
     be served primarily by cargo aircraft.
     Senate amendment
       No change.
     Conference substitute
       Section 121(a)(2): House provision.


                          10. ENTITLEMENT CAPS

     House bill
       Section 201(a)(3): Caps eliminated
     Senate amendment
       No change.
     Conference substitute
       House provision: Section 121(a)(3).


                         11. STATE ENTITLEMENT

     House bill
       Section 201(b): Raised to 18.5%. Relievers and small 
     commercial service airports added.
     Senate amendment
       No change.
     conference substitute
       House provision: Section 121(b).


                         12. DISCRETIONARY FUND

     House bill
       Section 202: Must be at least $50 million plus amount 
     needed to cover letters of intent issued prior to 1/1/96. 
     Entitlement and set-asides reduced accordingly if necessary 
     to meet this minimum. Amount in fund above what is needed to 
     cover letters of intent is distributed 15% to planning & 
     general aviation airports and 30% to small hubs and non-hubs.
     Senate amendment
       Section 203: FAA must fulfill letter of intent (LOI) 
     commitments.
     Conference substitute
       Section 122: House except that $50 million is changed to 
     $148 million and the 15% guarantee to general aviation 
     airports and the 30% guarantee to small airports is 
     eliminated. In FY 97, this should result in a remaining 
     discretionary fund of $300 million. The Managers would expect 
     this to be distributed in accordance with FAA's historical 
     discretionary fund distribution practices. If the formula 
     results in a discretionary fund of more than $300 million, 
     the portion that exceeds $300 million should be distributed 
     one-third to general aviation airports, one-third to noise 
     projects, and one-third to the military airport program.


                  13. CAP ON GRANTS TO LARGE AIRPORTS

     House bill
       No provision.
     Senate amendments
       Section 202: Establishes a sliding cap on the level of 
     total AIP funds going to large and medium hubs. The 
     percentage limit would vary depending upon the level of funds 
     appropriated to AIP. The percentage of total AIP funds going 
     to projects at large and medium hub airports would be: 44.3 
     percent at funding of $1.45-1.55 billion; 44.8 percent at 
     funding of $1.35-1.45 billion; 45.4 percent at funding of 
     $1.25-1.35 billion; 46 percent at funding of $1.15-1.25 
     billion; and 47 percent at funding below $1.15 billion.
     Conference substitute
       House.

[[Page H11310]]

                       14. CARRYOVER ENTITLEMENTS

     House bill
       Section 203(a): Non-hubs can carry over their entitlements 
     for 3 years.
     Senate amendment
       No provision.
     Conference substitute
       House provision: Section 123(a).


                             15. SET-ASIDES

     House bill
       Section 203(b): Eliminates reliever, small commercial, and 
     planning set-asides. Set-aside for noise is 31% of 
     discretionary fund. This includes what an airport spends on 
     noise from its entitlement. Set-aside for military airports 
     is 4% of the discretionary fund. This can be used for 
     operational and maintenance at general aviation airports 
     adversely affected by a military base closure.
     Senate amendment
       No provision.
     Conference substitute
       House provision: Section 123(b).


                      16. MILITARY AIRPORT PROGRAM

     House bill
       Section 204:
       Reduces number of airports to 10.
       Changes criteria so that airports could be included if they 
     would increase capacity in major metropolitan areas and 
     reduce delays.
       Extends indefinitely eligibility of parking lots, fuel 
     farms, and utilities.
       Adds hangars to eligible items.
       Also, Section 203(b) extends program indefinitely.
     Senate amendment
       Section 204:
       Reduces number of airports to 12.
       Criteria changed so that except for airports included 
     before August 24, 1994, the only ones that could be included 
     would be closed or realigned military airports or those that 
     would reduce delays at an airport with 20,000 annual delays 
     or would increase capacity in metropolitan areas or reduce 
     delays.
       A military airport may be designated for additional 5-year 
     periods.
       Extends indefinitely eligibility of parking lots, fuel 
     farms, and utilities.
       Extends program for one year.
     Conference substitute
       Section 124:
       Senate provision but add eligibility for hangars from House 
     bill.
       Extend program length for 2 years.


                        17. innovative financing

     House bill
       Section 206: Authorizes 10 innovative financing projects 
     over next 3 years limited to payment of interest, bond 
     insurance, and flexible local match. Phased funding is not 
     included.
     Senate amendment
       No provision.
     Conference substitute
       Section 148: House provision.


                        18. intermodal planning

     House bill
       Section 301: This section encourages coordination between 
     aviation planning and other transportation planning in the 
     metropolitan area and encourages Metropolitan Planning 
     Organizations (MPOs) to include airport operators as members. 
     Subsection (b) requires the sponsor of a new airport to give 
     the MPO a chance to review plans for the new airport and 
     include in the AIP grant application its response to any 
     comments made by the MPO.
     Senate amendment
       No provision.
     Conference substitute
       Section 141: House provision but drop subsection (b).


                          19. federal mandates

     House bill
       Section 302: This section broadens the ability of AIP and 
     PFC funds to be used to pay for Federal mandates.
     Senate amendment
       Section 201(b): Similar provision.
     Conference substitute
       Section 142(b): Senate provision.


                         20. runway maintenance

     House bill
       Section 303: Permits AIP grants for up to 10 runway 
     maintenance projects per year at general aviation airports.
     Senate amendment
       Section 201: Similar but requires issuance of regulations. 
     Two projects must be in states without a medium or large hub. 
     In designating projects, FAA must take into account 
     geographical, climatological, and soil diversity.
     Conference substitute
       Section 142(a): Senate provision, but the Administration 
     will issue guidelines instead of regulations.


                          21. intercity buses

     House bill
       Section 304: A new grant assurance directing airports to 
     try to provide access to intercity buses.
     Senate amendment
       Section 206: Similar grant assurance except it applies to 
     other modes of transportation and explicitly states that the 
     airport does not have to fund any special facilities as a 
     result of this provision.
     Conference substitute
       Section 143: Senate provision.


                         22. cost reimbursement

     House bill
       Section 305:
       This section allows AIP grants to be used to reimburse an 
     airport for a project already underway. This reimbursement 
     must be from the airport's entitlement funds and the grant 
     can be made only if:
       (i) The project is begun after September 30, 1996;
       (ii) A grant agreement is executed for the project; and
       (iii) The project is in accordance with the airport's 
     approved layout plan and complies with all laws, rules, and 
     assurances that usually apply to AIP grants.
       Subsection (b) states that an airport will not receive any 
     priority for discretionary funds if its entitlement turns out 
     to be insufficient to cover reimbursement for the project.
     Senate amendment
       No provision.
     Conference substitute
       Section 144: House provision.


                          23. Letter of Intent

     House bill
       Section 306: This section requires the Secretary to issue 
     rules requiring a cost-benefit analysis for new letters of 
     intent (LOI) for projects at medium and large hub airports. 
     No letters of intent can be issued for projects not yet under 
     construction until these rules take effect even if the 
     airport has already applied for the LOI. A request for a 
     letter of intent must include specific details of the 
     proposed financing plan for the project. The Secretary must 
     consider the effect of the project on overall national air 
     transportation policy when deciding whether to issue a letter 
     for a project.
     Senate amendment
       No provision.
     Conference substitute
       Senate provision: The Managers understand that concerns 
     have been voiced regarding previous management by the Federal 
     Aviation Administration (FAA) for Letters of Intent (LOI) 
     under the Airport Improvement Program. As outlined in GAO/
     RCED-94-100, the FAA has been criticized for not 
     ``establish[ing] goals and performance measures for the [LOI] 
     program, including a goal for improving systemwide 
     capacity.'' Recognizing the need for a clear set of selection 
     criteria to review all new LOI applications, the FAA 
     promulgated a new review policy, as printed in the Federal 
     Register on October 31, 1994, which evaluates three 
     components of an application: a project's effect on overall 
     national air transportation system capacity; a project's 
     benefit and cost, and, the financing commitment, including 
     project timing, in terms of the airport capital improvement 
     plan by the airport sponsor. The Managers applaud the FAA's 
     efforts on this matter and direct FAA officials to consider 
     each of the three requirements prior to issuance of any 
     Letters of Intent.


        24. selection criteria for award of discretionary grants

     House bill
       Section 307: This section adds three additional criteria to 
     be considered in the award of discretionary grants. They are 
     the priority that a State gives to the project, the projected 
     growth in passengers at the airport, and whether the number 
     of passengers has increased by more than 20 percent over the 
     previous 12-month period.
     Senate amendment
       Section 203: Adds two additional criteria. They are (1) at 
     a reliever airport, the number of operations projected to be 
     diverted to the reliever airport as a result of the project 
     and the cost savings to be realized by the users and (2) the 
     priorities of the States and FAA regional offices to the 
     extent they are not in conflict with the other criteria of 
     this section.
     Conference substitute
       Section 145: both House bill and Senate amendment.


                         25. small airport fund

     House bill
       Section 308: This section states that in making grants to 
     non-hub airports from the small airport fund, the Secretary 
     shall give priority to multi-year projects for construction 
     of new runways that are cost beneficial and would increase 
     capacity in a region of the U.S.
     Senate amendment
       No provision.
     Conference substitute
       Section 146: House provision.


                         26. State Block Grant

     House bill
       Section 309: This section changes the state block grant 
     program by increasing the number of participating states from 
     7 to 10, directing FAA to permit States to use their own 
     priority system when not inconsistent with the national 
     priority system, and making the program permanent.
     Senate amendment
       Section 205:
       Directs FAA to permit States to use their own priority 
     system when not inconsistent with the national priority 
     system.
       Extends program for one year.

[[Page H11311]]

     Conference substitute
       Section 147:
       House provision, except the number of states is increased 
     to 8 in 1997 and 9 in 1998. Many airport sponsors own and 
     operate more than one airport. For instance, an entity may 
     serve as the sponsor of a primary airport, and it may also 
     own and operate one or more reliever airports. The sponsor in 
     essence maintains an integrated airport system.
       In a State Block Grant Program state, the state has been 
     designated the responsibility for distributing federal grant 
     funds to the state's reliever airports. The Managers are 
     aware, however, of instances in which a State Block Grant 
     state has entered into an agreement with the Federal Aviation 
     Administration, under which the appropriate FAA regional 
     office continues to determine and distribute grant funds to 
     particular reliever airports that are owned and operated by a 
     sponsor that also owns and operates a primary airport.
       The Managers support continuation of this type of 
     arrangement. it would be inefficient and unnecessarily 
     duplicative for an airport sponsor that owns and operates a 
     primary airport and one or more reliever airports as an 
     integrated system to be subject to two different sets of 
     grant procedures and standards (both federal and state) in 
     the execution and administration of federal AIP grants. The 
     Managers encourage the continuaitonof this arrangement 
     between the FAA and the state, even when the law provides 
     that states shall hold the authority to administer reliever 
     airport funds.


                       27. airport privatization

     House bill
       Section 310:
       Creates a pilot program permitting, subject to DOT 
     approval, the sale or long-term lease of 6 airports. The 
     sponsor and the potential purchaser must file an application. 
     DOT may grant the application by issuing three exemptions. 
     The first exemption would waive the revenue diversion 
     prohibitions to permit the public owner to make money from 
     the sale but only an amount agreed to by 60 percent of the 
     airlines serving that airport with 60 percent of the landed 
     weight. The second exemption would waive the requirements in 
     law and FAA policy guidance that AIP grants be repaid and 
     land received from the Federal government be returned. The 
     third exemption would permit the new owner to receive 
     compensation from operating the airport.
       Subsection (c) of new section 47133 lists the conditions 
     that must be met by an airport sale or lease agreement. These 
     conditions are provisions to ensure that; (1) the airport 
     will be available to the public on reasonable terms and 
     without discrimination; (2) the airport will continue in 
     operation without interruption in the event the new owner 
     goes bankrupt; (3) the new owner will maintain and improve 
     the airport and include a plan for doing so; (4) airline fees 
     will not increase faster than inflation unless more than 60 
     percent of the airlines with 60 percent of the landed weight 
     agree to higher rates; (5) safety at the airport will be 
     maintained; (6) noise from the airport will be mitigated; (7) 
     environment impacts will be mitigated; and (8) collective 
     bargaining agreements of airport employees will not be 
     abrogated.
       At least one of the privatized airports is to be a general 
     aviation airport. The private airports under this section are 
     authorized to charge a PFC, receive AIP entitlement grants, 
     and charge users reasonable rates, fees, and charges like 
     other airports. The new owner is required to continue to use 
     the facility as an airport. The exemptions issued under this 
     section may be revoked if, after notice and hearing, DOT 
     finds that the purchaser or lessee has knowingly violated any 
     of the commitments that it made in the purchase or lease 
     agreement.
       Subsection (h) of new section 47133 clarifies that the 
     power of airlines over use of revenue and fees in this 
     section applies only to the airports purchased or leased 
     under this section and not to other airports.
       Subsection (b) of this section makes private airports 
     subject to the same prohibition on head taxes as public 
     airports.
       Subsection (c) requires DOT to consider whether the private 
     airport has complied with the requirement that airline fees 
     not increase faster than the rate of inflation in deciding a 
     rates and charges complaint against that airport.
     Senate amendment
       No provision:
     Conference substitute
       Section 149:
       House provision with following changes or clarifications:
       Reduce number of participating airports from 6 to 5
       1 large, 3 medium, small, or non-hubs, and 1 general 
     aviation airports are eligible for this pilot program
       65% of airlines must agree to transactions and to rate 
     hikes. If 1 carrier represents 65% of landed weight then 2 
     airlines must approve for transactions and rate hikes.
       Discretionary AIP grants allowed but only if sanctioned by 
     FAA Administrator with 60% private money match to 40% Federal
       2-year study of the pilot program with a report to 
     appropriate Congressional committees
       DOT Secretary must validate that any airport privatized 
     would not be anti-competitive requirement that airport 
     operator has to improve and modernize airport through capital 
     investments
       Secretary has authority to audit airport anytime.
       Rate hikes on general aviation shall rise no faster than 
     those of commercial carriers.
       Secretary shall consider needs of general aviation when 
     approving privatization
       Commercial service airports limited to long-term leases. 
     Lease or sale permitted for general aviation airports.
       The Managers have agreed to a limited pilot program to 
     determine if new investment and capital from the private 
     sector can be attracted through innovative financial 
     arrangements. The managers spent a great deal of time 
     discussing and debating a series of conditions and 
     limitations. The managers are aware that Allegheny County 
     Airport, a general aviation facility in Pennsylvania, and 
     Stewart Airport in New York State are interested in pursuing 
     these innovative arrangements. The managers anticipate that 
     all airport applications should be appropriately considered 
     and that the Secretary should select airports for this pilot 
     program based on the best qualified candidates.


   28. Use of Noise Abatement Funds by Non-Airport Local Governments

     House bill
       Section 311: This section permits noise abatement grants to 
     be made to State or local government that is not the 
     airport's owner if that government has land use and zoning 
     control in the area and if the airport agrees that the state 
     or local government's noise abatement plan or project is 
     consistent with airport operations and plans.
     Senate amendment
       No provision.
     Conference substitute
       Senate.


                            29. Dual Mandate

     House bill
       Section 401: Amends sections 40101(d) to make safety and 
     security FAA's highest priority and to strike promotion 
     language in two other paragraphs. Amends 40104(a) to strike 
     promotion language.
     Senate amendment
       Section 407: Amends section 40104 to require FAA to 
     encourage the safety of air commerce in addition to the 
     development of civil aeronautics.
     Conference substitute
       Section 401: House changes to section 40101(d) and Senate 
     changes to section 40104(a). The Managers have adopted 
     provisions from both the House and Senate bills to clarify 
     that the FAA's highest priority is safety and security. The 
     managers do not intend for enactment of this provision to 
     require any changes in the FAA's current organization or 
     functions. Instead, the provision is intended to address any 
     public perceptions that might exist that the promotion of air 
     commerce by the FAA could create a conflict with its safety 
     regulatory mandate.


                     30. Purchase of Housing Units

     House bill
       Section 402: This section permits FAA to purchase housing 
     outside the 48 States if the unit does not cost more than 
     $200,000 and the FAA files a report with Congress 30 days 
     before the closing certifying that the price of the units 
     does not exceed the median price in the area and that buying 
     the housing is the most cost beneficial way to provide 
     housing for its employees.
     Senate amendment
       Section 401: Similar provision except no $200,000 cap and 
     no certification that price does not exceed the median price.
     Conference substitute
       Section 1201: House except the cap is raised to $300,000 
     plus inflation in the local area.


          31. technical correction relating to state taxation

     House bill
       Section 403: This section corrects a mistake that was made 
     when section 1113 of the Federal Aviation Act of 1958 (49 
     U.S.C. 1513) was recodified as section 40116 of Title 49.
     Senate amendment
       No provision.
     Conference substitute
       No provision. The managers recognize that this technical 
     correction has created confusion. In order to provide more 
     time for review, the provision has not been included in this 
     bill. However, the managers continue to believe that the 
     recodification of section 1113 was done incorrectly and would 
     expect that the new section 40116 would continue to be 
     interpreted in the same way as former section 1113.


               32. use of pfc for debt financing project

     House bill
       Section 404: This section permits revenue from an airport's 
     passenger facility charge (PFC) to be spent on debt financing 
     on terminal development projects at non-hub airports where 
     construction began between November 5, 1988 and November 5, 
     1990 and the airport certifies that no safety, security, or 
     capacity project will be deferred by spending PFC money in 
     this way.
     Senate amendment
       No provision.
     Conference substitute
       Senate.


      33. clarification of pfc revenue as constituting trust funds

     House bill
       Section 405: States that PFC money collected by airlines is 
     held in trust by them

[[Page H11312]]

     and that they hold neither a legal or equitable interest in 
     it except for the handling fee or interest permitted by DOT.
     Senate amendment
       No provision.
     Conference substitute
       Section 1202: House provision.
       This provision clarifies Congress' intent in authorizing 
     the Passenger Facility Charge program in 1990 that PFCs 
     collected by airlines and their agents are held in trust for 
     the local agencies imposing those fees. FAA's current 
     regulations implementing the PFC statute accurately reflects 
     the trust fund nature of the airlines' collection and 
     remittance of PFC funds from their passengers. In certain 
     recent and current airline bankruptcy cases, courts have 
     appeared erroneously not to accept the trust fund nature of 
     the collection process; PFC proceeds should not be treated as 
     other funds of the bankrupt carrier.


              34. voluntarily submitted safety information

     House bill
       Section 406:
       This section permits FAA to withhold voluntarily provided 
     safety and security information if disclosure would 
     discourage people from providing it, the information helps 
     FAA improve safety and security, and withholding the 
     information would not be inconsistent with the FAA's safety 
     and security responsibilities.
       The FAA should issue rules to establish the process by 
     which protection from disclosure will be afforded to 
     voluntarily submitted information.
     Senate amendment
       Section 402: Same provision with slight wording 
     differences.
     Conference substitute
       Section 402: Senate provision.


                   35. supplemental type certificates

     House bill
       Section 407: This section states that FAA may issue 
     supplemental type certificates (STCs) for modifications to 
     aircraft parts. It requires anyone installing the 
     modification to have the permission of the holder of the STC 
     to use it.
     Senate amendment
       No provision.
     Conference substitute
       Section 403: House provision.
       Nothing in this provision is intended to alter or modify 
     the continuing obligation of an STC design holder under 
     existing Federal Aviation Regulations to notify the operator 
     of an STC modified aircraft of changes necessary to ensure 
     continued airworthiness of the product.


                         36. Revenue Diversion

     House bill
       Section 408: This section imposes the existing prohibition 
     against revenue diversion on all airports certificated by FAA 
     even if they are not receiving AIP grants. This provision 
     does not apply to heliports. Airports that have not received 
     grants in the last 10 years can get waivers from the FAA. 
     Subsection (b) imposes treble damages on anyone caught 
     illegally diverting airport revenue.
     Senate amendment
       Section 904:
       Prohibits using local taxes (except taxes effective on 
     December 30, 1987) or revenues generated by an airport that 
     is subject to Federal assistance, for anything but capital 
     and operating costs of the airport, the local airport system, 
     or other facilities owned or operated by the airport that are 
     directly related to air transportation.
       Exemption for airports who had a statute passed before 
     September 2, 1982 allowing revenue to support the general 
     debt obligations or other facilities of the owner or 
     operator.
       State tax on aviation may still support aviation noise 
     mitigation purposes.
       Section 905:
       Requires the annual audit required in Sections 7501-7505 of 
     Title 31 of airport grant recipients include an audit of 
     funding activities. If the airport is found to 
     inappropriately handle airport funds, the Administrator must 
     review the audit, collect appropriate information, and hold a 
     hearing to render a final determination if the airport 
     illegally diverted revenues. The Airport sponsor is then 
     notified. The Secretary may withhold transportation funds if 
     the sponsor is found to owe the airport revenue. Sponsor has 
     180 days to pay or may be charged civil penalties which would 
     go to the aviation trust fund. Actions to recover illegally 
     diverted funds have a 6 year statute of limitations.
       The Secretary shall charge a minimum interest rate of 
     illegally diverted revenue. In 90 days, DOT shall revise the 
     policies and procedures under 47107(i) of Title 49. If an 
     airport pays for services conducted off the airport for 
     capitol or operating expenses later than 6 years after the 
     expense was incurred, it is considered revenue diversion.
       Section 906: This is a conforming amendment to the Internal 
     Revenue Code of 1986.
     Conference substitute
       Title VIII:
       Senate, but add treble damages from the House bill.
       The conferees want to clarify that if a local fuel tax was 
     enacted or adopted before December 30, 1987, but for which 
     collections were not made until some significant period of 
     time after December 30, 1987, it shall not be grandfathered 
     pursuant to this section and all proceeds of such a tax must 
     be used for the capital or operating costs of the airport, 
     the local airport system, or pursuant to paragraph (3) of 
     subsection (a).


                  37. certification of small airports

     House bill
       Section 409:
       This section authorizes FAA to certificate airports served 
     by commuter aircraft with between 10 and 30 seats. In 
     establishing the standards with which these small airports 
     must comply, the FAA should adopt the least burdensome 
     alternative that will provide a comparable level of safety 
     with the larger airports. Any rule imposing standards on 
     these small airports cannot go into effect until 120 days 
     after the rule, and a report on the impact of the rule on air 
     service to the airports involved, is submitted to Congress.
       An airport cannot be required to seek a certificate if it 
     does not desire commuter air service.
     Senate amendment
       No provision.
     Conference substitute
       House provision: Section 404.


                        38. pilot record sharing

     House bill
       Section 410. This is based on H.R. 3536 (Report 104-684) 
     that passed the House on July 22, 1996.
       Adds a new section 44723 to the chapter on air safety 
     regulation.
       Subsection (a) of section 44723 deals with pilot records. 
     This subsection would require an airline, before hiring a 
     pilot, to request the pilot's records. The hiring airline 
     would be required to request from the FAA, the pilot's 
     license, medical certificate, type rating, and any 
     enforcement actions that resulted in a finding against the 
     pilot that has not been overturned.
       In addition, it requires the airline to request records 
     from the pilot's previous airline employer. These records 
     include proficiency and route checks, airplane and route 
     qualifications, training, physical exams, physical or 
     professional disqualifications, drug tests and alcohol tests.
       Airlines would be required to request the motor vehicle 
     driving records of the pilot from the National Driver 
     Register.
       Similar items would be required at contract carriers and at 
     commuter airlines.
       Records that must be furnished are limited to those entered 
     within 5 years of the date of the request unless the record 
     involves a license revocation that is still in effect.
       The FAA and the airlines would be required to maintain the 
     relevant records for 5 years. Before any records are 
     released, the FAA and the airlines must obtain written 
     consent from the pilot. These records must be provided within 
     30 days.
       The pilot must also be informed within 20 days that his or 
     her records have been requested and that the pilot has a 
     right to receive a copy of those records. A reasonable charge 
     may be imposed by those providing the requested records.
       An airline receiving the records must give the pilot a 
     chance to submit written comments correcting any inaccuracies 
     in those records. The pilot is also afforded the right to 
     review his or her records at the current employer.
       The privacy of the pilot is protected by limiting the use 
     of the records received under this section to those involved 
     in the hiring decision and by requiring that the records be 
     destroyed or returned when they are no longer needed.
       The FAA would be permitted to provide standard forms to 
     request records, obtain the written consent from pilots, and 
     inform the pilot of the record request. In addition, this 
     section would permit the FAA to promulgate rules protecting 
     the privacy of pilots and ensuring the prompt compliance with 
     a request for records.
       Subsection (b) of section 44723 limits liability and 
     preempts States and local law. Paragraph (1) prohibits 
     lawsuits against an airline or its employees for requesting a 
     pilot's record, complying with such a request, or entering 
     information into the pilot's record. Paragraph (2) preempts 
     any State or local government from passing any law which 
     would undermine this prohibition. However, paragraph (3) 
     provides a limited exception to the prohibition in paragraph 
     (1) by permitting a lawsuit or State action if the airline 
     knowingly provided false information about the pilot.
       Subsection (c) of section 44723 makes clear that the 
     privacy protections and other limits in this bill are not 
     meant to hinder the FAA, NTSB, or a court in their ability to 
     obtain records in the course of an investigation of an 
     accident. This section also makes conforming changes to the 
     current law governing the National Drive Register.
       Subsection (d) makes violations of the record-sharing and 
     privacy provisions subject to civil penalties.
       Subsection (e) makes the above changes applicable to any 
     airline hiring a pilot 30 days after the date of enactment.
       Requires the FAA to issue a proposed rule within 18 months 
     establishing minimum standards for pilot qualifications.
       Requires the FAA, together with the Defense Department, to 
     report within one year on whether military pilot records 
     should be made available to civilian airlines seeking to hire 
     that pilot.
       Requires the FAA to conduct a study to determine whether 
     current minimum flight time requirements for an individual 
     seeking employment as a pilot with an air carrier are

[[Page H11313]]

     sufficient. The results of this study must be submitted to 
     Congress not later than 1 year after the date of enactment.
     Senate amendment
       Sections 701-703: Same as House except:
       Different short title.
       Uses phrase ``hiring an individual as a pilot'' rather than 
     ``allowing individual to being service as a pilot''.
       No exception for records on flight, duty, and rest time.
       No requirement that FAA obtain written consent from the 
     pilot before releasing records (b)(2).
       Permits airlines to obtain a release from liability 
     (f)(2)(B).
       No requirement that air carrier or trustee maintain records 
     for 5 years. (f)(4).
       30 day deadline for furnishing records runs from receipt of 
     request rather than from receipt of pilot's consent. (f)(5)
       No deadline for providing record to pilots. (f)(6)
       Promulgation of standard forms is mandatory rather than 
     discretionary. (f)(8)
       No requirement to destroy or return records if the pilot is 
     not hired.
       Adds a periodic review.
       No protection from liability for person writing the 
     records.
       Exception from liability for knowingly providing false 
     information applies only if record was maintained in 
     violation of a criminal statute.
       No assurance that DOT, NTSB, and courts will have access to 
     pilot records.
       No civil penalties.
       No deadline on study of minimum standards for pilots.
       No study of military records.
       No study of minimum flight times.
     Conference substitute
       Title V:
       Senate with the following provisions from the House bill--
       Air carrier records to be shared with prospective employers 
     should not include records relating to flight time, duty 
     time, or rest time
       Provide written consent for release of records
       Records must be furnished to a pilot in 20 days of receipt 
     of request
       Protection from liability for person entering information 
     into the records
       Assurance that FAA, NTSB, and the courts will have access 
     to the records
       A study of pay for training is also added.


                         39. child pilot safety

     House bill
       Section 411. This is based on H.R. 3267 (Report 104-683) 
     that passed the House on July 22, 1996.
       States that a pilot in command of an aircraft may not allow 
     an individual who does not hold a valid private pilots 
     certificate and the appropriate medical certificate to 
     manipulate the controls of an aircraft if the pilot knows or 
     should have known that the individual is attempting to set a 
     record or engage in an Aeronautical competition or feat. The 
     Administrator is given the power to revoke an airman's 
     certificate if the Administrator finds that a pilot has 
     allowed a non-pilot to manipulate the controls while 
     attempting to set a record or engage in an aeronautical 
     competition or feat.
       Requires the FAA Administrator to conduct a study of the 
     impacts of children flying aircraft. The Administrator must 
     consider the effects of imposing any restrictions on children 
     flying aircraft on safety and on the future of general 
     aviation. The report is due 6 months after enactment, and 
     should include recommendations on: (1) whether the 
     restrictions established by the bill should be amended or 
     repealed; and (2) whether certain individuals or groups 
     should be exempt from any age, altitude, or other 
     restrictions that the Administrator may impose by regulation. 
     Finally, the bill allows the Administrator to issue 
     regulations imposing age, altitude, or other restrictions on 
     children flying aircraft as a result of the findings of the 
     study.
     Senate amendment
       No provision.
     Conference substitute
       House provision: Title VI.


                   40. Background Checks on Screeners

     House bill
       Section 412: This section permits FAA to require airlines 
     to do background checks before hiring someone to screen 
     passengers, their baggage, or cargo. This could include 
     criminal history record checks only where the background 
     investigation revealed a gap in employment of a year or more 
     that is not satisfactorily explained. This applies only to 
     screeners hired on or after the date of enactment. A screener 
     may be hired while undergoing a background check if properly 
     supervised.
     Senate amendment
       Section 305: Require background checks for screeners and 
     others associated with baggage or cargo. Lists situations 
     where, at a minimum, ciminal checks required.
     Conference substitute
       Section 304: Senate provision but delete the phrase ``at a 
     minimum'' and add special rule from House bill allowing a 
     screener needing a background check to continue working if 
     properly supervised.


                41. airports near closed military bases

     House bill
       Section 414: Permits general aviation airports near closed 
     or realigned military bases to be closed.
     Senate amendment
       No provision.
     Conference substitute
       Section 1203: House provision but limited to airports near 
     Army depots. Also, adds a provision that if the sale of the 
     land generates enough money to pay off remaining value of the 
     grant, that remaining value must be repaid. The substitute 
     reduces the distance between the airport and the depot from 3 
     miles to 2 miles.


                      42. construction of runways

     House bill
       Section 415: Permits AIP grants for constructing a new 
     runway at an international airport not withstanding any other 
     provision of law.
     Senate amendment
       No provision.
     Conference substitute
       Senate.


                         43. gadsden air depot

     House bill
       Section 416: Waives deed restrictions at Gadsden Air Depot.
     Senate amendment
       No provision.
     Conference substitute
       Section 1204: House provision.


        44. regulations affecting intrastate aviation in Alaska

     House bill
       Section 417: Requires FAA to consider Alaska's unique 
     reliance on aviation and to make the appropriate regulatory 
     distinctions when taking actions that could affect Alaska.
     Senate amendment
       Section 403:
       Same provision.
       Slight differences in wording.
     Conference substitute
       House provision: Section 1205.


                         45. Westchester County

     House bill
       Section 418: Permits fees collected by Westchester County 
     Airport to be paid into the county treasury for the airport 
     at least equal the amount of money it collects from the 
     airport.
     Senate amendment
       No provision.
     Conference substitute
       Section 1206: House provision.
       The Managers want to clarify that the funds generated by 
     the airport should be spent on capital and operating costs of 
     the airport. The assumption is that the expenditures from the 
     treasury of Westchester County for the Westchester County 
     Airport will be equal to or greater than the fees being 
     deposited into the treasury by the airport, otherwise it 
     should be considered revenue diversion.


                          46. Bedford Airport

     House bill
       Section 419: States that any instrument landing system in 
     Pennsylvania that is decommissioned should, if feasible, be 
     transferred and installed at the Bedford, Pennsylvania 
     Airport.
     Senate amendment
       No provision.
     Conference substitute
       Section 1207: House but change ``shall'' to ``may'' and 
     drop the phrase ``if feasible''.


                     47. Doppler Radar in New York

     House bill
       Section 420: Prohibits the construction of a Doppler radar 
     at the Coast Guard station in Brooklyn, New York. Also 
     requires a study and report within one year of the 
     feasibility of placing the radar on off-shore platforms. The 
     report must include proposed locations that are as far as 
     possible from populated areas while providing appropriate 
     safety measures. The FAA may not begin construction of a 
     Doppler radar for Kennedy or LaGuardia Airports until this 
     study is completed.
     Senate amendment
       No provision.
     Conference substitute
       Section 1217:
       House provision but limited to a study and report.
       The Managers believe that when the final Environmental 
     Impact Statement (EIS) on the siting of a Terminal Doppler 
     Weather Radar is issued it should include an analysis of all 
     sites mentioned in the final scoping paper for the EIS.


                         48. Worcester Airport

     House bill
       Section 421: Directs FAA to provide radar coverage for 
     Worcester Airport from a radar in Rhode Island if that would 
     be appropriate.
     Senate amendment
       No provision.
     Conference substitute
       House provision: Section 1208.


                          49. Sanford Airport

     House bill
       Section 422: Directs FAA to provide a new ILS for this 
     airport if that would be appropriate.

[[Page H11314]]

     Senate provision
       No provision.
     Conference substitute
       Section 1209: House provision.


                      50. Aircraft Noise Ombudsman

     House bill
       Section 423: Requires FAA to hire a noise ombudsman to 
     serve as a liaison with the public on issues regarding 
     aircraft noise and to be consulted when the FAA changes 
     aircraft routes.
     Senate amendment
       No provision.
     Conference substitute
       Section 1210: House provision, except that the provision is 
     revised to make clear that the FAA need not increase the 
     total number of FTEs.


                         51. Private Relievers

     House bill
       Section 424: Allows private relievers to donate property as 
     their local share for an AIP grant. FAA shall value any such 
     donation at its fair market value, not at its original 
     purchase price.
     Senate amendment
       No provision.
     Conference substitute
       Section 1211: House provision.


                      52. Trust Fund Authorization

     House bill
       Section 501: Allows grants and expenditures out of the 
     Trust Fund for 3 years.
     Senate amendment
       Section 301: Similar provision except limited to 1 year.
     Conference substitute
       Title X: Allows grants and expenditures out of the Trust 
     Fund for 2 years.


                              53. research

     House bill
       Title VI:
       Funds FAA Research, Engineering, and Development Account at 
     $186 million for 1997.
       Adds research priorities for the Administration.
       Adds to the duties of the Research Advisory Committee by 
     requiring an annual review of the RED funding level.
       The National Aviation Research Plan is reduced from a 15-
     year plan to a 5-year plan. It also requires additional 
     information in the Plan.
     Senate amendment
       Section 103; FY 97--$206 million.
     Conference substitute
       Title XI: House provision but adds $21 million for security 
     programs consistent with the President's emergency request 
     for additional funds for security.


                  54. washington metropolitan airports

     House bill
       H.R. 1036, Report 104-596:
       Eliminates the Board of Review.
       Adds four Presidential appointees to the airport board.
       Replaces the Board of Review with a nine member Federal 
     Advisory Commission appointed by the Secretary of 
     Transportation.
       Subjects to periodic congressional reauthorization, the 
     eight airport actions, including the issuance of bonds, that 
     were formerly subject to review by the Board of Review.
       Freezes current airport regulations governing the Dulles 
     access road which now limit use of that road to vehicles 
     going to or from Dulles Airport.
       Liberalizes the slot rules so that FAA could permit 
     additional flights at National but only for new entrants; 
     essential air service; or foreign air transportation as long 
     as those additional flights would not adversely affect 
     safety.
     Senate bill
       Eliminates Board of Review.
       Adds Two Presidential appointees.
       Sense of the Senate on parking.
     Conference substitute
       Title IX:
       Increases the Board of Directors from 11 to 13 by 
     increasing Presidentially appointed members from 1 to 3. The 
     members appointed by the President should be registered 
     voters of states other than Maryland, Virginia, or the 
     District of Columbia and not more than 2 from the same 
     political party. These members shall represent the national 
     interest and be appointed by September 30, 1997.
       The Board of Review is terminated.
       Former staff of the Board of Review may be hired by the 
     Secretary of Transportation and paid by the Airport 
     Authority.
       After October 1, 2001, DOT may not approve any airport 
     grants or new PFC applications. This is intended only to 
     provide a mechanism for periodic Congressional review of 
     airport actions.
       Assures Dulles Airport Access Highway remains dedicated to 
     airport users.
       Sense of the Senate that MWAA not provide reserved, free or 
     preferential parking to Members of Congress, other government 
     officials, or diplomats.


 55. Sense of the Senate Regarding the Funding of the Federal Aviation 
                             Administration

     House bill
       No provision.
     Senate amendment
       Section 404: Sense of the Senate provision stating that the 
     aviation excise taxes should be reinstated for 18 months 
     while long-term funding options for the FAA are developed.
     Conference substitute
       Section 1212: Senate provision.


          56. authorization for state-specific safety measures

     House bill
       No provision.
     Senate amendment
       Section 405: Authorizes appropriations of up to $10 million 
     to the FAA in FY 1997 to address aviation safety problems 
     identified by the National Transportation Safety Board (NTSB) 
     in specific states.
     Conference substitute
       Section 405: Senate provision.


                    57. air ambulance tax exemption

     House bill
       No provision.
     Senate amendment
       Section 406: Sense of the Senate provision stating that if 
     the aviation excise taxes are reinstated, the exemption from 
     these taxes (i.e., from the passenger ticket tax) for 
     helicopter air ambulance transportation should be broadened 
     to include transportation by fixed-wing air ambulances.
     Conference substitute
       House provision: This was addressed in other legislation.


                          58. commercial space

     House bill
       No provision.
     Senate amendment
       Title V: Amends Commercial Space Launch Act.
     Conference substitute
       House provision.


                             59. FAA Reform

     House bill
       No provision although the House passed a FAA reform measure 
     (H.R. 2276, Report 104-475) in March 1996.
     Senate amendment
       Title VI:
       Section 601 cites the short title of title VI as the ``Air 
     Traffic Management System Performance Improvement Act of 
     1996''.
       Section 602 defines the terms ``Administration'', 
     ``Administrator'', and ``Secretary'' for the purposes of this 
     title of the bill.
       Section 603 establishes that the provisions of title VI 
     will take effect 30 days after enactment of the legislation.
       Section 621 sets forth a series of findings establishing 
     the general basis for enactment of the provisions contained 
     in title VI. The findings recognize, for example, the unique 
     character of the FAA's activities and the need for funding 
     reform.
       Section 622 sets forth four critical purposes underpinning 
     title VI.
       Section 623 amends section 106 of title 49, United States 
     Code, to provide the FAA Administrator express autonomy and 
     authority with regard to the internal functioning of the 
     agency. As the current law provides, the FAA Administrator 
     would be appointed by the President, with the advice and 
     consent of the Senate, for a fixed, 5-year term.
       Some authority previously transferred to the DOT under the 
     Department of Transportation Act (P.L. 89-670) would be 
     recommitted to the FAA under this section. The Administrator 
     would be the final authority for: the promulgation of all FAA 
     rules and regulations (except as otherwise specifically 
     provided in the bill); and for any obligation, authority, 
     function, or power addressed in the bill.
       This section enables the Administrator to delegate his or 
     her functions, power, or duties to other FAA employees. 
     Further, the Administrator would not need to seek the 
     approval or advice of the DOT on any matter within the 
     authority of the Administrator.
       Nevertheless, the FAA remains within the DOT, which would 
     continue to provide general oversight of the agency as well 
     as cooperate with the more autonomous FAA.
       This section also gives the Administrator some voice in the 
     selection of the eight political appointees who serve under 
     him or her. The President would consult closely with the 
     Administrator when considering FAA appointments to ensure 
     harmony and stability within the FAA's leadership.
       This section adds a definition of ``political appointee'' 
     to the statute. This section also preserves all authority 
     vested in the Administrator (by delegation or by statute) 
     prior to enactment of the bill. Nothing in this bill is meant 
     to take anything away from any of the current powers, duties, 
     or authority resting with the FAA or its Administrator.
       Section 624 affirms the Administrator's authority to issue, 
     rescind and revise such regulations as necessary to carry out 
     the functions of the FAA. The Administrator would be required 
     to act upon a petition for rulemaking within six months by 
     dismissing the petition, by informing the petitioner of an 
     intention to dismiss, or by issuing a notice of proposed 
     rulemaking (NPRM) or advance notice of proposed rulemaking 
     (ANPRM).
       This section also requires the Administrator to issue a 
     final regulation, or take other final actions, on an NPRM 
     within 18 months of the date it is published in the Federal 
     Register (or within 24 months in the case of an ANPRM).
       Under this section, the DOT's authority to review FAA rules 
     is limited. In specified, limited circumstances, the FAA 
     could not issue certain regulations without the prior

[[Page H11315]]

     approval by the DOT. The DOT Secretary would have 45 days to 
     review, for approval or disapproval, any FAA regulation 
     likely to result in an annual, aggregate cost of $50 million 
     or more to state, local, and tribal governments, or to the 
     private sector. The DOT Secretary would also have 45 days to 
     review ``significant'' regulations, which are rules that, in 
     the judgment of the Administrator (in consultation with the 
     Secretary, as appropriate), are likely to: have an annual 
     effect on the economy of $100 million or adversely affect in 
     a material way other parts of the society; be inconsistent or 
     otherwise interfere with an action taken or planned by 
     another agency; materially alter the budgetary impact of 
     entitlements, grants, user fees, or loan programs or the 
     rights and obligations of recipients thereof; or raise novel 
     legal or policy issues arising out of legal mandates.
       This section also provides that in an emergency, the 
     Administrator may issue regulations that require DOT approval 
     without obtaining such prior approval. Such regulations, 
     however, are subject to DOT ratification, and would be 
     rescinded within 5 business days without such ratification. 
     Under this section, the Administrator also would issue non-
     significant regulations or other actions that are routine, 
     frequent or procedural in nature, without review or approval 
     by the DOT. Examples of routine of frequent actions that are 
     non-significant include standard instrument approach 
     procedure regulations, en route altitude regulations, most 
     airspace actions, and airworthiness directives. The DOT also 
     would not be authorized to review ``rules of particular 
     applicability,'' such as exemptions, operations 
     specifications, and special conditions, all of which apply to 
     one individual or entity, unless such exemptions met the 
     definition of significant in this section.
       Finally, this section requires the FAA (three years after 
     the bill is enacted) to review ``unusually burdensome'' 
     regulations that are at least three years old. ``Unusually 
     burdensome'' regulations are defined as those that result in 
     the annual, aggregate expenditure of $25 million or more by 
     State, local, and tribal governments, or by the private 
     sector. Such regulations are to be reviewed to determine: the 
     accuracy of the original cost assumptions; the overall 
     benefit of the regulations; and the need to continue such 
     regulations in their present form. This section also provides 
     that the Administrator may review immediately any three-year-
     old regulation in force prior to enactment of the bill.
       Section 625: Provides that the Administrator may appoint 
     and fix the compensation of necessary employees and officers 
     of FAA. This section also provides that, in fixing the 
     compensation and benefits of employees, the Administrator may 
     not engage in any type of bargaining, except as provided for 
     under section 653 of the bill. Further, this section provides 
     that the Administrator shall not be bound by any requirement 
     to establish compensation or benefits at particular levels. 
     This section also provides other personnel authority to the 
     Administrator, including, for example, the authority to hire 
     experts and consultants and to use the services of personnel 
     from any other Federal agency.
       This section also provides that officers and employees 
     shall be appointed in accordance with civil service laws and 
     compensated in accordance with title 5, United States Code, 
     except as otherwise provided by law.
       Section 626: Provides broad, general authority for the 
     Administrator to enter into contracts, leases, cooperative 
     agreements, and other transactions, as necessary to carry out 
     the functions of the FAA.
       Section 627: Provides the Administrator with authority to 
     use or accept, with or without reimbursement, services, 
     equipment, personnel, and facilities of any other Federal 
     agency or public or private entity. Such acceptance would not 
     constitute an agumentation of the Administration's budget. 
     Heads of other Federal agencies would be asked to cooperate 
     with the Administrator.
       Section 628: Provides broad authority to the Administrator 
     to acquire, construct, improve, repair, operate, and maintain 
     air traffic control and research facilities and equipment, as 
     well as other real and personal property to others.
       Section 629: Permits the Administrator to accept the 
     transfer of unobligated balances and unexpended funds from 
     other agencies to carry out functions assigned to FAA by this 
     or other Acts.
       Section 630: Establishes a 15-member Federal Aviation 
     Management Advisory Council (MAC) to provide the 
     Administrator with input from the aviation industry and 
     community. The MAC would be comprised of one designee each of 
     the Secretaries of Transportation and Defense and 
     representatives from various segments of the aviation 
     community who would be appointed by the President with the 
     advice and consent of the Senate. Members of the MAC should 
     be selected from among individuals who are experts in 
     disciplines relevant to the aviation community and who are 
     collectively able to represent a balanced view of the issues 
     before the FAA. The MAC members also should not be selected 
     based on political or partisan considerations.
       This section would subject MAC members to criminal 
     penalties for unauthorized disclosure of commercial or other 
     proprietary information.
     Conference substitute
       Senate provision: The managers recognize that to provide 
     reform of the FAA, additional autonomy in decision-making in 
     a number of areas is needed. For this reason, the managers 
     agreed to give the FAA authority in the regulatory, 
     personnel, and procurement areas. This change should result 
     in a new way of doing business for the FAA, with less 
     oversight by DOT.


                     60. Aircraft Engine Standards

     House bill
       No provision.
     Senate amendment
       Section 631: Requires the Environmental Protection Agency 
     (EPA) to consult with FAA on aircraft emission standards. 
     Also, EPA shall not change the emission standards if it would 
     significantly increase noise and adversely affect safety. FAA 
     should allow EPA to participate in advisory committees when 
     appropriate.
     Conference substitute
       Section 406: Senate provision.


                        61. Rural Air Fare Study

     House bill
       No provision.
     Senate amendment
       Section 632: Requires DOT to conduct a study of rural air 
     fares, and to provide a report to the Commerce Committee 
     within 60 days after enactment of this bill. The study would 
     encompass an analysis of the types of air service provided to 
     rural communities as well as competitive aspects of such air 
     service.
     Conference substitute
       Section 1213: Senate, but Transportation & Infrastructure 
     Committee added as a recipient of the report.


                            62. Procurement

     House bill
       No provision.
     Senate amendment
       Sections 651, 652:
       Not later than April 1, 1999 the FAA must employ outside 
     experts to provide an independent evaluation of the 
     effectiveness of its acquisition system. The FY 1996 DOT 
     Appropriations bill (P.L. 104-50) gave the FAA authority to 
     implement new procurement and personnel systems as of April 
     1, 1996.
       Section 652 establishes a safeguard, built into the 
     procurement system, that would require the FAA to terminate 
     facilities and equipment programs that are 50 percent or 
     more: (1) over cost, (2) below performance goals, or (3) 
     behind schedule. the Administrator could waive the 
     termination requirement if a termination would be 
     inconsistent with the safe and efficient operation of the 
     national air transportation system. Also, the FAA would be 
     required to consider terminating any program that is 10 
     percent or more: (1) over cost, (2) below performance goals, 
     or (3) behind schedule.
       Specific exceptions to termination are allowed.
     Conference substitute
       Senate provision.


                             63. Personnel

     House bill
       No provision.
     Senate amendment
       Section 653:
       Directs the Administrator, in developing and making changes 
     to the new personnel system, to consult with FAA employees 
     and negotiate with the exclusive bargaining representatives 
     of employees. If the Administrator fails to reach agreement 
     with such bargaining units, the parties will engage the 
     services of the Federal Mediation and Conciliation Service. 
     If agreement is not reached following such mediation, 
     proposed changes to the personnel system shall not take 
     effect until 60 days have elapsed after the Administrator has 
     submitted the proposed change, any objections of the 
     exclusive bargaining representatives, and the reasons for 
     such objections, to the Congress. In negotiating changes to 
     the personnel system, the administrator and the exclusive 
     bargaining representatives would be required to use every 
     reasonable effort to find cost savings and to increase 
     productivity within each of the affected bargaining units, as 
     well as within the FAA as a whole. Nothing in this bill, 
     therefore, prohibits the exclusive bargaining representatives 
     from assisting in identifying cost savings in the procurement 
     system as well as the new personnel system.
       Three years after the personnel management system is 
     implemented, outside experts should be employed by the 
     Administration to evaluate the program's effectiveness.
       Until July 1, 1999, basic wages should not be involuntarily 
     adversely affected by this section, except for unacceptable 
     performance, or by a reduction in force, or by a 
     reorganization.
       Except as otherwise provided by Section 653, all labor-
     management agreements that are in effect at the time of 
     passage shall remain in effect until their normal expiration, 
     unless otherwise agreed to.
     Conference substitute
       Senate provision.


                            64. faa funding

     House bill
       No provision.
     Senate amendment
       Sections 671, 672:
       Section 671 sets forth fourteen findings establishing the 
     general basis for the provisions related to FAA funding. 
     These findings concern the important services provided by

[[Page H11316]]

     the FAA in a variety of critical areas that benefit the users 
     of the air transportation system.
       Section 672 sets forth seven critical purposes underlying 
     the enactment of Title VI of the bill. Those purposes include 
     providing a financial structure for the FAA that would enable 
     it to support the future growth in the national aviation, 
     ATC, and airport system. The third purpose, which is to 
     ensure that any funding would be dedicated solely for the use 
     of the FAA, is in reference to the user fees authorized under 
     section 673.
     Conference substitute
       Senate provision.


                                65. fees

     House bill
       Section 413: This section authorizes FAA to impose fees, up 
     to $30 million per year, on aircraft that overfly the U.S. 
     but do not land here. The aggregate annual amount of these 
     fees should not exceed the aggregate annual direct costs 
     incurred by the FAA in providing air traffic services to such 
     flights. Further, the user fee imposed on any flight should 
     be based on the FAA's actual cost of service.
     Senate amendment
       Section 673: Directs FAA to impose fees, up to $100 million 
     per year, on (1) aircraft that overfly the U.S. but do not 
     land, (2) services provided to foreign governments (other 
     than air traffic control services). The fees shall be based 
     on the direct total cost of providing the service. FAA shall 
     publish an initial fee schedule subject to public comment. 
     Nongovernmental experts may be used to develop fees. Repeals 
     section 70118. S. 1194 permitted the FAA to base its fee 
     system on total costs or value. Value was deleted during 
     debate on the bill.
     Conference substitute
       Section 273: Senate provision except the repeal of section 
     70118 is deleted and clarification is provided as to the 
     method of setting user fees. The user fee imposed on any 
     flight must be based on the FAA's actual cost of service and 
     not on any non-cost based determination of the ``value'' of 
     the service provided. Further, assuming similar costs of 
     serving different carrier and aircraft types, the user fee 
     may not vary based on factors such as aircraft seating 
     capacity or revenues derived from passenger fares.


                          66. study commission

     House bill
       Section 205: Establishes National Civil Aviation Review 
     Commission to study safety, airport capital needs and ways to 
     meet those needs, and FAA operational needs and ways to meet 
     those needs. Appointments made by DOT and relevant 
     Congressional Committees. DOT cannot appoint current aviation 
     employees. Independent audit of FAA financial requirements. 
     GAO assessment of airport needs. Final report due in 1 year.
     Senate amendment
       Section 674:
       This section requires the DOT to contract with an outside 
     entity to conduct a comprehensive FAA needs and cost 
     allocation assessment of the financial requirements of the 
     FAA through 2002. The assessment must be completed within 90 
     days of the contract being awarded. The DOT should establish 
     an 11-member task force within 30 days with people who have 
     expertise in aviation, represent a balanced view of different 
     aviation interests and include one member who knows the 
     Congressional budget process. The task force submits a report 
     to DOT based on the assessment by the outside entity. DOT 
     submits a report to Congress within one year.
       This section also requires that, within 120 days, GAO must 
     conduct an assessment of the manner in which costs for ATC 
     services are allocated between the FAA and the DOD.
     Conference substitute
       Section 274:
       Senate provision except that the Senate's 11 member task 
     force is renamed the Commission in the House bill and 
     expanded to 21 members, 13 appointed by the Secretary, 2 
     appointed by the House Republican leadership, 2 appointed by 
     the House Democrat leadership, and 2 by the Senate majority 
     leader and 2 by the minority leader of the Senate. The 
     Commission is divided into 2 task forces, one dealing with 
     the safety issues in the House bill and the other with the 
     funding issues in the Senate bill. It also includes the GAO 
     assessment of airport needs from the House bill.
       The purpose of this assessment is to determine 
     independently what the financial needs of the FAA will be in 
     the short- and long-term. The assessment also must include a 
     cost allocation analysis detailing which segments of the 
     aviation community are driving the various costs imposed on 
     the FAA. Costs attributed to users should reflect the full 
     range of FAA expenditures and activities associated directly 
     or indirectly with a particular aviation segment, including, 
     for example, costs of airport infrastructure financed in 
     whole or in part by the FAA. This assessment is urgently 
     needed by the task force, Congress, and the aviation 
     community so proper evaluation of the FAA's financial picture 
     can be done using a single, objective set of numbers and 
     assumptions.
       The recommendations of the task force may include a variety 
     of possibilities, such as alternate funding proposals, taking 
     the trust fund off budget, user fee system proposals, 
     modifications to the aviation excise tax system, a 
     combination of excise taxes and user fees, and means of 
     meeting airport infrastructure needs. The task force also 
     shall consider a limited, innovative program for airport-
     related funding mechanisms. For each recommendation, the task 
     force must assess the impact on safety, administrative costs, 
     the Congressional budget process, industry economics, the 
     ability of the FAA to use sums collected, and the needs of 
     the FAA. The report should detail various options, with the 
     benefits and impacts of each.
       The conferees believe the assessment must contain an 
     analysis of current and future spending of the entire FAA, 
     including airport capital needs. A major premise of this 
     legislation is that old assumptions and old ways of doing 
     business must be re-evaluated and updated. This includes an 
     independent assessment of the FAA's needs and the nation's 
     airport capital needs to ensure that capacity is able to meet 
     demand. As a result, the task force, Congress and the FAA 
     must be in a position to determine which projects expand 
     capacity and enhance the safety and security of the national 
     air transportation system.
       The assessment should provide assistance to Congress as to 
     appropriate reforms, which will allow the FAA and airports to 
     more efficiently utilize and maximize Airport Improvement 
     Program (AIP) dollars for necessary capacity, safety, and 
     security.
       The Conferees agree that the task force in identifying the 
     needs and associated costs of the FAA task force should use 
     as a baseline not less than the FY 1997 appropriated levels 
     including the supplemental amounts. Following recent 
     accidents and a 90-day review conducted by the FAA that found 
     that additional staffing needs have been identified, the 
     conferees agree that the task force recommendations should 
     fully meet these and any other security and safety 
     requirements or other unmet and underfunded needs.
       The conference agreement includes the provisions of the 
     House bill which would establish an aviation safety task 
     force. Under the terms of the conference agreement, this 
     safety task force shall be formed by the membership of the 
     National Civil Aviation Review Commission. The safety task 
     force should submit a report to the FAA which sets forth a 
     comprehensive analysis of aviation safety.
       The conferees recognize that at this time, the Vice 
     President is leading a similar study of aviation safety with 
     the White House Commission on Aviation Safety and Security. 
     It should be noted that the safety study required under the 
     bill is not intended to duplicate the Gore Commission. 
     Rather, it is intended and anticipated that the safety study 
     in this bill will build on the experience and recommendations 
     of the Gore Commission.


                   67. procedure for considering fees

     House bill
       No provision.
     Senate amendment
       Section 675 sets forth expedited procedures.
     Conference substitute
       Section 275: Expedited procedures apply only to the Senate.


                    68. budgetary treatment of fees

     House bill
       No provision.
     Senate amendment
       Section 676 creates a separate, dedicated account 
     (established in the Treasury) for all new fees and other 
     receipts (except for those associated with the Aviation 
     Insurance Program) collected by the FAA. The receipts and 
     disbursements of this account would be awardable immediately 
     for expenditures of Congressionally authorized programs and 
     shall remain available until expended.
       Annually, the Administrator shall submit a Report on the 
     fees including a list of fees, the activities supported by 
     fees, and any proposed disposition of surplus fees.
       This section also requires the FAA to develop a cost 
     accounting system.
       This section also provides that when an air carrier is 
     required by the Administrator, pursuant to this legislation, 
     to collect a fee imposed on a third party by the FAA, the 
     Administrator shall ensure that such air carrier may collect 
     from such third party an additional uniform amount reflecting 
     necessary and reasonable expenses (net of interest) incurred 
     in collecting and handling the fee.
       Section 676(a)(7) requires that the Administrator provide 
     to the Congress, prior to the submission of any proposed user 
     fee or excise tax schedule, a report justifying the need for 
     the proposed user fees or taxes and including other specified 
     information such as steps the Administrator has taken to 
     reduce costs and improve efficiency within FAA.
     Conference substitute
       Section 276: Senate except drop section 676(a)(7) of Senate 
     amendment.


                       69. Essential Air Service

     House bill
       No provision.
     Senate amendment
       Section 678: Authority to administer and operate the EAS 
     program would be transferred from the DOT Secretary to the 
     Administrator. The program would be established at a $50 
     million level, with authority of the program to be funded by 
     user fees collected under this legislation, including those 
     specifically derived from overflights. At the end of each 
     fiscal year, if less than $50 million has been obligated for 
     EAS programs,

[[Page H11317]]

     the Administrator shall make those remaining amounts 
     available under the Airport Improvement Program for grants to 
     rural airports to improve rural air safety. This section 
     also, in effect, repeals a provision in the current law 
     sunsetting the EAS program.
     Conference substitute
       Section 278: Senate provision except the transfer of the 
     EAS program from DOT to FAA is eliminated. EAS funding for 
     '97 is equal to the amount appropriated plus any user fee 
     revenue above $75 million that is collected pursuant to 
     Section 45301(a)(1).


              70. multi-year authorization & appropriation

     House bill
       Authorizes AIP, F&E, and Operations for 3 years.
     Senate amendment
       Section 677: Prescribes a 3-year authorization & 
     appropriation cycle for Trust Fund programs.
     Conference substitute
       Section 277: Senate provision, but starting in 1999.


                   71. study of funding for security

     House bill
       No provision.
     Senate amendment
       Section 301: 30-day FAA study of transferring security 
     responsibilities from airlines to airports or to the 
     government. Also includes certification of screening 
     companies.
     Conference substitute
       Section 301 and 301: Senate provision, but change to a 90-
     day study done in cooperation with other appropriate 
     officials. Make screening certification a separate section.


       72. assistance to families involved in airlines accidents

     House bill
       H.R. 3923 (Report 104-793) which passed the House on 
     September 18, 1996, directs NTSB to take action to help 
     families including designating a liaison and an independent 
     organization and obtaining passenger lists. Also directs 
     airlines to submit plans, establishes a task force to study 
     further improvements, and prohibits unsolicited lawyer 
     contact.
     Senate bill
       Requires NTSB to establish a program to provide family 
     advocacy services, work with airlines to procure services of 
     family advocates. Guidelines must be issued in 90 days
     Conference substitute
       Title VII:
       House bill with the following changes:
       The list of parties that are prohibited from making 
     unsolicited communications with family members or injured 
     victims is expanded to include potential adverse parties to 
     the litigation.
       ``within the control of the air carrier'' is added to the 
     requirement that air carriers assure that the family of each 
     passenger will be consulted about the disposition of all 
     remains and personal effects of the passenger.
       The model plan is changed to guidelines to make clear that 
     it is intended to serve as guidance for airlines developing 
     plans and not as a precursor to requiring airlines to revise 
     existing plans that may be perfectly sound.
       The Task Force developing the guidelines for air carriers 
     is also asked to study the implications for personal privacy 
     if air carriers were required to notify passengers more 
     quickly. The concern is that such a requirement may entail an 
     airline requesting more information from passengers than many 
     people may consider appropriate.


                     73. safety data classification

     House bill
       No provision.
     Senate amendment
       Section 303: NTSB must develop system for classifying 
     accidents within 90 days. Provision for public comment, 
     report to Congress, and presentation to ICAO.
       Also requires FAA to give high priority to deploying safety 
     performance analysis system.
     Conference substitute
       Section 407: Senate amendment with revised language.
       The Managers are interested in having accurate statistical 
     information available to the public with regard to aviation 
     accidents. Currently, accident information can be misleading 
     in that certain occurrences are categorized as accidents that 
     do not fit the public perception of an aviation accident. It 
     is important that the public understand the aviation accident 
     data it receives so that informed decisions can be made on 
     the basis of that data. This legislation requires the 
     National Transportation Safety Board to amend its 
     categorization of aviation accidents to make the information 
     more user friendly. After public comment, the NTSB is 
     required to publish, on a periodic basis, aviation accident 
     data, as recategorized. The Managers believe the accident 
     data should be published on a timely basis and made widely 
     available to the general public so that informed decisions 
     can be made by the traveling public. Dissemination through 
     the NTSB's web page would be one means of widely distributing 
     the information.


               74. weapons and explosive detection study

     House bill
       No provision.
     Senate amendment
       National Academy of Science study of systems to detect 
     weapons and explosives.
     Conference substitute
       Section 303: Senate provision with the addition of hardened 
     containers as an additional factor to be studied.


 75. Interim Deployment of Commercially Available Explosive Detection 
                               Equipment

     House bill
       Section 101 of H.R. 3953 which passed the House on August 
     2, 1996, directs FAA to facilitate the deployment of 
     commercially available explosive detection system while 
     waiting for the certified system.
     Senate bill
       Section 306: Similar provision but also gives FAA waiver 
     authority.
     Conference substitute
       Section 305: Senate provision.


                     76. audit of background checks

     House bill
       Section 103 of H.R. 3953 directs FAA to audit the criminal 
     history records checks.
     Senate bill
       Section 307 directs FAA to audit effectiveness of criminal 
     history record checks.
     Conference substitute
       Section 306: Senate provision.


                        77. passenger profiling

     House bill
       Section 105 of H.R. 3953 directs FAA, DOT, intelligence 
     community, and law enforcement community to continue to 
     assist airlines in developing computer-assisted passenger 
     profiling.
     Senate bill
       Section 308: Sense of Senate directing FAA to assist 
     airlines in developing computer-assisted profiling and other 
     appropriate passenger profiling programs to be used in 
     conjunction with other security measures.
     Conference substitute
       Section 307: House provision with ``other appropriate 
     measures'' language from Senate.


                  78. use of aip and pfc for security

     House bill
       Section 106 of H.R. 3953 permits AIP and PFC funds to be 
     used for safety and security programs at airports.
     Senate bill
       Section 309 is the same.
     Conference substitute
       Section 308: House and Senate provisions.


                     79. security liaison agreement

     House bill
       No provision.
     Senate amendment
       Section 310: Directs FAA and FBI to establish liaison near 
     high risk airports.
     Conference substitute
       Section 309: Senate provision.


                          80 threat assessment

     House bill
       No provision.
     Senate amendment
       Section 311 directs FAA and FBI to carry out threat 
     assessments at high risk airports.
     Conference substitute
       Section 310: Senate but insert ``each'' before 
     ``airports''.


                           81. baggage match

     House bill
       No provision.
     Senate amendment
       Section 312: Requires the FAA to report within 30 days on 
     the domestic baggage match program recommended by the Gore 
     Commission. Sense of Senate that FAA should work with 
     airlines & airports on feasible, effective bag match.
     Conference substitute
       Section 311: Senate provision but require only if baggage 
     match program is actually carried out. This is intended to 
     remove any implication that this provision is designed to 
     mandate such a baggage match program. Includes sense of 
     Senate.


                     82. enhanced security programs

     House bill
       No provision.
     Senate amendment
       Section 313: Requires airlines and airports to periodically 
     assess their security. The FAA must periodically audit these 
     assessments and make unannounced and anonymous inspections 
     and tests of security systems.
     Conference substitute
       Section 312: Senate provision.


                              83 air cargo

     House bill
       Section 107 of H.R. 3953 lists 3 items relating to air 
     cargo for FAA to study.
     Senate bill
       Section 314: Requires DOT to report on changes recommended 
     by the Gore Commission with respect to air cargo.
       Sense of the Senate that inspection of cargo, mail, and 
     company shipped material can be enhanced.
     Conference substitute
       Section 314:
       Senate bill except FAA is directed to do study and the 3 
     items from the House bill are incorporated.
       Includes Sense of the Senate.


                       84. supplemental screening

     House bill
       Section 109 of H.R. 3953 directs FAA to consider using bomb 
     sniffing dogs to supplement

[[Page H11318]]

     existing bomb detection systems. Section 110 authorizes Trust 
     Fund spending for training and evaluation of K-9 teams at 50 
     largest airports.
     Senate amendment
       No provision.
     Conference substitute
       Added to section 305 (item 75) above by permitting the 
     requirement to deploy commercially available explosive 
     detection equipment to be met at airports by the deployment 
     of dogs or other appropriate animals to supplement equipment 
     for screening passengers, baggage, mail, or cargo for 
     explosives or weapons.


                       85. carriage of candidates

     House bill
       No provision.
     Senate amendment
       Section 408 states that the same rules must apply to 
     carriage of candidates in Federal and State elections.
     Conference substitute
       Section 1214: Senate provision.


                     86. Train Whistle Requirements

     House bill
       No provision.
     Senate amendment
       Section 409: Prohibits implementation of DOT rule requiring 
     train whistles at grade crossings.
     Conference substitute
       Section 1218: Senate provision with changes.
       The conferees, in adopting these changes to Section 20153 
     of Title 49, United States Code, do not intend to require the 
     Secretary to begin anew the current rulemaking already 
     underway to implement this provision. Instead, the Secretary 
     should incorporate the new additional criteria into his 
     completion of the existing proceeding. Similarly, because the 
     conference language retains the original focus of rules under 
     Section 20153 on categories of crossings, not individual 
     crossings, the implementation of this provision should not be 
     affected by references to individual crossings in the 
     conference report accompanying the recently approved 
     Department of Transportation appropriations legislation. 
     Finally, the conferees urge the Secretary to consider in 
     implementing the regulations, the impact of those regulations 
     on the quality of life in affected communities.


                        87. Gambling on Vessels

     House bill
       No provision.
     Senate amendment
       Section 410 limits authority of states to regulate gambling 
     on ships.
     Conference substitute
       Section 1222: Senate provision.


                      88. Grand Canyon Rulemaking

     House bill
       No provision.
     Senate amendment
       Section 411 requires FAA to provide 30 additional days for 
     comments.
     Conference substitute
       Senate provision, but change to 45 days and include 
     environmental assessment comment period.


 89. Fees for Services in Connection With Rail Maximum Rate Complaints

     House bill
       No provision.
     Senate amendment
       Section 412 prohibits the Surface Transportation Board from 
     increasing these fees.
     Conference substitute
       The conferees share the concern, reflected in the Senate 
     provision, that the cost-based fees collected by the Surface 
     Transportation Board pursuant to its existing Title 31 
     authority should not impose an unfair burden on small 
     shippers seeking redress before the Board through maximum-
     rate complaints. The protection reflected in the conference 
     provision will prevent any such increases until the Congress 
     has reauthorized the STB, which is required by the end of 
     Fiscal Year 1998.


                            90. Hickory, nc

     House bill
       No provision.
     Senate amendment
       Section 413: Permits transfer of a control tower to 
     Hickory, directs study of whether tower meets criteria of 
     contract tower program, and prohibits closure of New Bern 
     Flight Service Station unless FAA makes required 
     certification.
     Conference substitute
       Senate provision.


                      91. international terrorism

     House bill
       No provision.
     Senate amendment
       Section 414: Sense of Senate that state sponsored terrorism 
     is an act of war.
     Conference substitute
       Senate provision.


                       92. procurement contracts

     House bill
       No provision
     Senate amendment
       Section 415: Requires each grant recipient that awards a 
     contract using more than $5 million in Federal funds to 
     report to DOT on the number of bids and the amount by which 
     the winning bid exceeded the lowest bid.
     Conference substitute
       House.


              93. Employee retirement income security act

     House bill
       No provision.
     Senate amendment
       Section 416: Relates to limited scope audit.
     Conference substitute
       House.


 94. advance electronic transmission of cargo and passenger information

     House bill
       No provision.
     Senate amendment
       Section 417: Requires airlines to provide the manifest in 
     advance.
     Conference substitute
       The Managers have receded to the House position. Senator 
     Graham offered the provision in a desire to improve safety 
     and security. The Managers are aware of the importance of the 
     need for the Customs Service to work with the airlines to 
     provide the highest levels of protection to the traveling 
     public. The decision not to include the specific language 
     should not be read to suggest a lack of agreement with the 
     spirit and intent of the provision.


      95. technical corrections to the icc termination act of 1995

     Conference substitute
       This provision corrects a technical error in the ICC 
     Termination Act of 1995 (Public Law 104-88) (``ICCTA''). As 
     part of the abolition of the former Interstate Commerce 
     Commission and the reduction of economic regulation of 
     railroads and trucking, the ICCTA included a number of 
     conforming amendments to other statutes which had referred to 
     the ICC. Among these conforming amendments were changes to 
     the Railway Labor Act. The Railway Labor Act governs labor 
     relations and collective bargaining in the airline and 
     railroad industries; it does not apply to motor carriers.
       The ICCTA stated unequivocally that its enactment ``did not 
     expand or contract coverage of employers or employees under 
     the Railway Labor Act.'' 49 U.S.C. 10501(c)(3)(B). However, 
     because of a drafting error, the ICCTA conforming provision 
     (Section 322) removed the term ``express company'' from the 
     railroad part of the Railway Labor Act. This could be 
     interpreted as inconsistent with the clear bipartisan intent 
     not to alter the boundaries of the Railway Labor Act in any 
     way. Therefore, the technical amendment made by this section 
     merely restores the exact legal standards for coverage under 
     the Railway Labor Act that existed prior to enactment of the 
     ICCTA. Otherwise, the current text of the law could cause 
     needless confusion and punish both employers and employees 
     who have relied upon the prior text and settled 
     interpretation of the Railway Labor Act.
     From the Committee on Transportation and Infrastructure, for 
     consideration of the House bill (except section 501) and the 
     Senate amendment (except section 1001), and modifications 
     committed to conference:
     Bud Shuster,
     Bill Clinger,
     John J. Duncan, Jr.,
     From the Committee on Transportation and Infrastructure, for 
     consideration of section 501 of the House bill and section 
     1001 of the Senate amendment, and modifications committed to 
     conference:
     Bud Shuster,
     Bill Clinger,
     As additional conferees from the Committee on Rules, for 
     consideration of section 675 of the Senate bill, and 
     modifications committed to conference:
     David Dreier,
     John Linder,
     As additional conferees from the Committee on Science, for 
     consideration of sections 601-05 of the House bill, and 
     section 103 of the Senate amendment, and modifications 
     committed to conference:
     Robert S. Walker,
     Connie Morella,
     As additional conferees from the Committee on Science, for 
     consideration of section 501 of the Senate amendment and 
     modifications committed to conference:
     Robert S. Walker,
     F. James Sensenbrenner, Jr.,
     As additional conferees from the Committee on Ways and Means, 
     for consideration of section 501 of the House bill, and 
     sections 417, 906, and 1001 of the Senate amendment and 
     modifications committed to conference:
     Bill Archer,
     Phil Crane,
     Sam M. Gibbons,
                                Managers on the Part of the House.

     Larry Pressler,
     Ted Stevens,
     John McCain,
     Fritz Hollings,
     Wendell H. Ford,
     Managers on the Part of the Senate.
     
                               ____________________