[Senate Report 105-278]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 515
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-278
_______________________________________________________________________


 
 WENDELL H. FORD NATIONAL AIR TRANSPORTATION SYSTEM IMPROVEMENT ACT OF 
                                  1998

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 2279





                 July 30, 1998.--Ordered to be printed



       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                       one hundred fifth congress

                             second session

                     JOHN McCAIN, Arizona, Chairman

TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
SLADE GORTON, Washington             WENDELL H. FORD, Kentucky
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, 
KAY BAILEY HUTCHISON, Texas            West Virginia
OLYMPIA SNOWE, Maine                 JOHN F. KERRY, Massachusetts
JOHN ASHCROFT, Missouri              JOHN B. BREAUX, Louisiana
BILL FRIST, Tennessee                RICHARD H. BRYAN, Nevada
SPENCER ABRAHAM, Michigan            BYRON L. DORGAN, North Dakota
SAM BROWNBACK, Kansas                RON WYDEN, Oregon

                       John Raidt, Staff Director

                       Mark Buse, Policy Director

                  Martha P. Allbright, General Counsel

     Ivan A. Schlager, Democratic Chief Counsel and Staff Director

             James S. W. Drewry, Democratic General Counsel

                                     
                                                       Calendar No. 515
105th Congress                                                   Report
                                 SENATE

 2d Session                                                     105-278
_______________________________________________________________________


 WENDELL H. FORD NATIONAL AIR TRANSPORTATION SYSTEM IMPROVEMENT ACT OF 
                                  1998

                                _______
                                

                 July 30, 1998.--Ordered to be printed

_______________________________________________________________________


       Mr. McCain, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                         [To accompany S. 2279]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 2279) ``A Bill to amend title 
49, United States Code, to authorize the programs of the 
Federal Aviation Administration for fiscal years 1999,2000, 
2001, and 2002, and for other purposes'', having considered the 
same, reports favorably thereon with an amendment (in the 
nature of a substitute) and recommends that the bill (as 
amended) do pass.

                          PURPOSE OF THE BILL

  The purpose of S. 2279, as reported, is to provide a four-
year authorization for the majority of the programs of the 
Federal Aviation Administration (FAA), including the Airport 
Improvement Program (AIP). \1\ The bill also includes various 
provisions to improve aviation safety, security, and system 
capacity, to enhance competition and service in the aviation 
industry, and to address the issue of commercial air tour 
flights over national parks.
---------------------------------------------------------------------------
    \1\  The Research, Engineering and Development (RE&D) programs have 
already been authorized for fiscal year (FY) 1999 by separate 
legislation that was signed into law on February 11, 1998.
---------------------------------------------------------------------------

                          BACKGROUND AND NEEDS

  Titles I through V of the bill reaffirm the commitment of the 
Committee to ensuring that the U.S. continues to have the 
safest and most efficient air transportation system in the 
world. They reauthorize for four years the major programmatic 
areas within the FAA, which are divided into operations, 
facilities and equipment (F&E), research, engineering, and 
development (RE&D), as well as the AIP. Title VI addresses 
Committee concerns with the need to ensure that the airline 
industry remains competitive and that small communities receive 
air service. Title VII incorporates legislation to address air 
tour operations over our National Parks.

                FAA and AIP Reauthorization (Titles I-V)

  The FAA is responsible for ensuring the safety, security, and 
efficiency of civil aviation, and for overseeing the 
development of a national system of airports. The AIP provides 
grants to fund the capital needs of the nation's commercial 
airports and general aviation facilities. Funding for most of 
the FAA, and all of the AIP, derives from the Airport and 
Airway Trust Fund (aviation trust fund), which was created by 
the Airport and Airway Development Act of 1970, primarily as a 
capital account to build our nation's aviation infrastructure. 
Over the years, the aviation trust fund has been used to a 
limited extent to fund the operations (e.g., personnel) of the 
FAA. According to the Congressional Budget Office (CBO), the 
uncommitted trust fund balance will be $9.185 billion by the 
end of fiscal year 1999, and grow to $30.732 billion by the end 
of fiscal year 2003. The balance will grow even larger in the 
out years.
  The broad range of critical activities the agency undertakes 
includes controlling air traffic across vast volumes of 
airspace, ensuring that pilots and aircraft mechanics are 
properly trained, developing technologies to detect potential 
security threats, and monitoring the design and production of 
aircraft, and certifying and monitoring our nation's air 
carriers.
  It is important to note that legislation to reauthorize the 
AIP establishes contract authority for the program. Without the 
contract authority in place, the FAA cannot distribute airport 
grants, regardless of whether an AIP appropriation is in place. 
Most recently, the Federal Aviation Reauthorization Act of 1996 
changed various aspects of the AIP and extended it until the 
end of fiscal year 1998.

             Airline Competition and Air Service (Title VI)

  Over the last several years, there has been growing concern 
within the Committee over airline competition and service. The 
Committee has held numerous hearings, taking testimony from a 
wide variety of witnesses. The Committee members likewise have 
engaged in lengthy discussions on the impacts of deregulation 
on small communities, airfares, the ability to serve specific 
cities, and the impact of limitations on operations at four 
major airports. Aviation competition has become a key issue and 
important policy goal, given rising airfares in certain 
markets, the relative lack of new low fare competition, and the 
announced alliances among the major air carriers.
  Network carriers, with numerous code-sharing relationships 
with smaller carriers, are able to aggregate traffic at large 
hubs, giving them the ability to increase frequencies to many 
communities that could not support point-to-point nonstop 
service. New entrant carriers generally have entered the medium 
to large markets, providing nonstop services different from the 
hub networks. Not all of these carriers have been successful 
over the years--new entrants have failed, as have carriers such 
as Eastern, Pan Am, and Braniff.
  Overall, according to analyses conducted by the Department of 
Transportation (DOT) and others, airfares have fallen since 
deregulation. The General Accounting Office (GAO) reported in 
October of 1996, however, that barriers exist that thwart the 
ability of carriers to provide new service at airports that are 
limited by slot constraints, and that market entry barriers, 
such as perimeter rules prohibiting flights at airports that 
exceed a certain distance, also impede competition and entry. 
The GAO noted that the DOT had not exercised its statutory 
authority provided for under the 1994 FAA reauthorization 
legislation that gave the DOT the ability to grant exemptions 
from the High Density Rule that are in the public interest and 
if ``circumstances'' are ``exceptional.'' Over the last several 
months, the DOT has granted slot exemption requests under the 
1994 statute to provide more access to New York's LaGuardia and 
Chicago's O'Hare airports. The Committee believes that the 
DOT's actions to grant the exemptions will provide new access 
for communities to these airports.
  The foregoing concerns prompted the Committee to take action 
in Title VI of the bill to improve the state of competition in 
the airline industry.

            Air Tour Flights over National Parks (Title VII)

  Legislation (S. 268) was introduced in 1997 to curb the 
harmful effects of excessive aircraft overflights of national 
parks. In response, the Administration empaneled a National 
Parks Overflights Working Group to develop a plan for 
instituting flight restrictions over national parks. 
Environmentalists, general aviation and air tour industry 
representatives, and Native American representatives constitute 
the membership of the working group. The group produced a 
consensus proposal on overflights at the end of 1997, which 
includes a recommendation that the group endorse legislation 
that encapsulates the agreement.
  In cooperation with the Committee, as well as the House 
Transportation and Infrastructure Committee, air tour industry 
representatives, environmentalists, and Native American 
representatives were able to agree on a legislative package to 
embody the working group's consensus agreement. That package is 
contained in Title VII of the bill.

                          LEGISLATIVE HISTORY

  On May 13, 1997, the Aviation Subcommittee held the first of 
several hearings on competition in the airline industry. As 
with most of the hearings, witnesses included representatives 
of the DOT, the GAO, small and large airlines, unions, and 
smaller communities. On October 28, 1997, the full Committee 
held a hearing that focused on legislation introduced by 
Senator McCain on October 29, 1997, S. 1331, the Aviation 
Competition Enhancement Act of 1997, and on a bill introduced 
by Senators Frist, Lott, and Thompson on October 31, 1997, S. 
1353, the Air Service Improvement Act of 1997. Both S. 1331 and 
S. 1353 were referred to the Committee after introduction. The 
Aviation Subcommittee continued its examination of these issues 
by holding hearings on April 23 and June 4, 1998, on the DOT's 
proposed competition guidelines and on the major airlines' 
proposed alliances. On April 22, 1998, Senators Ford, 
Rockefeller, Dorgan, Hollings, and Harkin introduced S. 1968, 
the Air Service Restoration Act, which was referred to the 
Committee. The Committee has taken testimony as part of a 
number of hearings on the problems of service to small and 
medium-size communities.
  On July 31, 1997, the Full Committee held a hearing on 
national parks overflights. Testimony was heard from the FAA, 
the National Park Service, air tour operators, and 
environmental interests on S. 268, the National Parks 
Overflights Act of 1997, legislation introduced by Senator 
McCain on February 5, 1997, to promote safety and quiet in 
national parks. Senator Akaka introduced related legislation, 
S. 291, the National Parks Airspace Management Act of 1997, on 
February 7, 1997. Both S. 268 and S. 291 were referred to the 
Committee after introduction.
  On February 12, 1998, the Aviation Subcommittee held a 
hearing on reauthorization of the AIP. The subcommittee heard 
testimony on legislative proposals offered by representatives 
of the aviation industry, including large and small airports, 
the airline industry, and state aviation officials. On April 
30, 1998, the Aviation Subcommittee held another hearing and 
took testimony from Administrator Jane Garvey on the 
Administration's legislative proposal to reauthorize the FAA, 
including the AIP.
  On July 9, 1998, Chairman McCain and Senator Gorton 
introduced S. 2279, the National Air Transportation System 
Improvement Act of 1998, which was referred to the Committee.
  On July 9, 1998, the Committee met in the first of two open 
executive sessions to consider S. 2279, and amendments thereto. 
Also on July 9, Senator Gorton offered an amendment to increase 
the cap on passenger facility charges (PFCs) by one dollar and 
to impose tighter criteria on all PFC-funded projects, but the 
amendment was defeated by a roll call vote. No further action 
was taken on the draft bill on July 9.
  On July 14, 1998, the Committee met again in executive open 
session and resumed consideration of amendments to S. 2279. 
Senators Stevens (naming the bill in honor of Senator Ford), 
Frist (regional jet study), Kerry (whistleblower protection for 
airline employees), Wyden (review of airline joint agreements), 
and Breaux (use of previously completed environmental reviews 
to satisfy new requirements) each offered separate amendments 
to the draft bill, all of which were adopted by voice vote. 
Chairman McCain and Senator Gorton offered a manager's 
amendment that provided technical clarifications and increased 
the authorization level for the air service pilot program, and 
it was adopted by voice vote. An amendment offered by Senator 
Dorgan to give the Secretary of Transportation authority to 
compel interline and joint-fare agreements between air carriers 
under certain circumstances was defeated by a roll call vote. 
Senator Ford offered a second degree amendment to Senator 
Wyden's amendment to remove a provision in the bill regarding 
slots at O'Hare Airport, but it was defeated by a roll call 
vote. S. 2279, with an amendment in the nature of a substitute, 
was ordered to be reported favorably without objection. The 
substitute included agreed upon amendments by Senators Stevens 
(increase in cargo entitlement; prohibition on PFCs for travel 
in Alaska on small aircraft), Snowe (broadening market 
practices study to include exclusive dealing arrangements), and 
Burns (GAO study on access to airports).

                      SUMMARY OF MAJOR PROVISIONS

  As reported, S. 2279 would authorize the operations, F&E, and 
AIP accounts of the FAA for the next four fiscal years. The 
bill would make several substantive and technical amendments to 
the AIP. The bill also includes a variety of provisions to 
enhance and improve aviation system safety, security, 
efficiency and capacity.
  To promote competition and quality air service, the bill 
would do the following: establish a four-year program to 
facilitate the initiation and development of air service for 
small communities; require the DOT to review marketing 
practices of air carriers that may inhibit the availability of 
quality, affordable air transportation service to small and 
medium-sized communities; provide authority for slot exemptions 
at high density airports for nonstop regional jet service; 
provide 12 new daily commuter slots at Ronald Reagan Washington 
National Airport for service to small and medium-sized markets 
within the 1,250-mile perimeter at the airport; require the DOT 
to grant limited exemptions to the perimeter rule at Reagan 
National Airport, as well as 12 new daily air carrier slots, to 
enable carriers to provide nonstop service beyond the 
perimeter; and allow the DOT to issue 100 slots at Chicago's 
O'Hare Airport.
  The national parks overflights provisions of the bill would 
require that commercial air tour operators, in order to conduct 
operations over a national park, must conduct the tours in 
accordance with the air tour management plan (ATMP) for that 
park. The FAA and the National Park Service (NPS) would work 
together to develop such plans for the conduct of commercial 
air tours over individual national parks. Commercial air tour 
operators would have to apply for authority to conduct 
operations over a park, and the FAA would prescribe operating 
conditions and limitations for each commercial air tour 
operator.

                            Estimated Costs

  In the opinion of the Committee, it is necessary under 
paragraph 11(a)(3) of Rule XXVI of the Standing Rules of the 
Senate to dispense with the requirements of paragraphs 11(a)(1) 
and (2) of the Rule and section 403 of the Congressional Budget 
Act of 1974 in order to expedite the business of the Senate.

                       REGULATORY IMPACT STATEMENT

  In accordance with paragraph 11(b) of Rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation:

                       NUMBER OF PERSONS COVERED

  In Title I, the new authorizations for an air safety and 
security program (Sec. 101), and an airport security program 
(Sec. 105) may slightly expand the number of persons or 
airports subject to additional safety regulation, but only if 
those persons or airports choose to become involved in those 
programs.
  In Title II, the innovative airport financing program (Sec. 
202) establishes a voluntary program that may expand by 10 the 
number of airports subject to additional regulation, but only 
if those airports choose to become involved in that program.
  In Title V, numerous operators of cargo aircraft would be 
subject to additional regulation by the requirement for the 
installation of collision avoidance systems on cargo aircraft 
(Sec. 502). A large number and variety of aircraft operators 
(primarily all air carriers and businesses with jets) would be 
subject to additional safety regulation by the requirement that 
most turbojet-powered aircraft be equipped with emergency 
locator transmitters (Sec. 504). Numerous federal employees 
would enjoy additional legal protections by the restoration of 
authority for them to seek redress when retaliated against for 
whistleblowing (Sec. 515). Similarly, thousands of employees of 
the airlines and their contractors would enjoy new statutory 
whistleblower protections (Sec. 519); however, all airlines and 
their contractors would be subject to the constraints of the 
new protections.
  In Title VI, the voluntary programs designed to improve small 
community air service (Secs. 602 and 603) may modestly expand 
the number of airports or communities subject to additional 
regulation, but only if those airports or communities choose to 
become involved in those programs.
  In Title VII, commercial air tour businesses that currently 
operate over national parks where there are no flight 
restrictions would be subject to new ATMPs (Sec. 702). This 
requirement will affect only commercial air tour companies, 
which are already subject to extensive federal aviation 
regulations.

                            ECONOMIC IMPACT

  Title I would authorize (for FAA operations, F&E, and AIP) 
total appropriations of $10.171 billion for fiscal year 1999, 
$10.448 billion for fiscal year 2000, $10.738 billion for 
fiscal year 2001, and $11.036 billion for fiscal year 2002. 
While funding for these programs is substantial, it should not 
have an unexpected inflationary effect on the domestic economy.
  In Title II, the innovative airport financing program (Sec. 
202), the flexible local matching share for small airports 
(Sec. 203), the flexible pavement design standards for 
nonprimary airports (Sec. 205(j)), and the requirement for 
prioritization of discretionary grant projects (Sec. 208) would 
lead to more efficient and effective use of federal grant 
monies for the airports affected by those provisions. The 
authority for airports to waive PFCs for small charter 
operations to small communities (Sec. 205(i)) would reduce 
consumer travel costs for the affected routes, as would the 
prohibition on charging PFCs to persons flying within Alaska on 
small aircraft (Sec. 205(h)).
  In Title III, the authority for the FAA to enter into 
severable service contracts for periods crossing fiscal years 
(Sec. 301) would reduce agency administrative work and thereby 
result in cost savings to the government. The amendments to the 
aviation insurance program (Sec. 307) would allow participating 
air carriers to get prompt payment insurance, which may 
increase business for insurance companies and protect the 
economic well-being of insured carriers that suffer losses.
  In Title V, the requirement that cargo aircraft install 
collision avoidance systems may cost the air cargo industry 
$160 million over 20 years, according to a very preliminary 
estimate by the FAA (Sec. 502); however, by helping to prevent 
midair collisions, many millions of dollars and human lives may 
be saved. The requirement for virtually all turbojet-powered 
aircraft to install emergency locator transmitters (Sec. 504) 
may cost affected operators of such aircraft approximately $36 
million, according to preliminary estimates by the FAA; 
however, significant amounts of money and many lives may be 
saved by enabling rescuers and accident investigators to locate 
downed aircraft more quickly.
  In Title VI, the programs designed to improve small community 
air service (Secs. 602 and 603) involve spending modest amounts 
of money that may yield substantial indirect benefits to local 
economies if air transportation is improved, as well as 
increase receipts in federal ticket tax revenues. Opportunities 
for air carriers to take advantage of slot and perimeter rule 
exemptions (Secs. 606-608) would produce economic savings to 
consumers and businesses, which would be enhanced if airfares 
are reduced, as the GAO has suggested will occur if slots and 
perimeter rules are eased.

                                PRIVACY

  This legislation would not have any adverse impact on the 
personal privacy of the individuals affected.

                               PAPERWORK

  In Title I, the air safety and security program (Sec. 101), 
and the airport security program (Sec. 105) may generate small 
amounts of administrative paperwork in association with federal 
selection and oversight of voluntary participants. The 
reprogramming notification requirement (Sec. 104) would result 
in an insubstantial increase in paperwork because the FAA is 
already required to report reprogramming activities to the 
appropriations committees.
  In Title II, the innovative airport financing program (Sec. 
202) may generate relatively small amounts of administrative 
paperwork in association with federal selection and oversight 
of voluntary program participants. The requirements for the FAA 
to prepare one report on efforts to implement capacity 
enhancement (Sec. 207), and for the DOT to provide public 
notice before issuing an airport grant assurance waiver (Sec. 
209), would result in some increase in paperwork for the 
government to satisfy those responsibilities.
  In Title V, small amounts of additional paperwork for the FAA 
would result from each of the following requirements: 
initiation of rulemakings on runway safety areas and precision 
approach path indicators (Sec. 503); promulgation of 
regulations to require emergency locator transmitters on more 
aircraft (Sec. 504); report on a plan to implement the Wide 
Area Augmentation System (Sec. 510); reissuance of the notice 
applicable to Alaska air guides (Sec. 511); establishment of a 
human factors oversight committee (Sec. 513); response to 
National Research Council recommendations on air traffic 
control automation (Sec. 513); and reports on modernization of 
the oceanic air traffic control system (Sec. 516) and on the 
air transportation oversight system (Sec. 517). A relatively 
small amount of additional paperwork would be generated for the 
DOT Inspector General for its validation of the FAA's cost 
accounting system (Sec. 514). Paperwork would be significantly 
reduced for airports and the FAA by allowing airports to 
utilize completed environmental assessments or impact 
statements for new projects, as appropriate (Sec. 518). 
Additional government (Department of Labor) and private sector 
paperwork would be generated by any complaints filed by airline 
employees alleging employer retaliation for whistleblowing 
(Sec. 519), but the number of such complaints filed under 
similar whistleblower statutes has been very low.
  In Title VI, the programs designed to improve small community 
air service (Secs. 602 and 603) may result in small amounts of 
administrative paperwork in association with federal selection 
and oversight of voluntary program participants. Applications 
for slots and for perimeter rule exemptions (Secs. 606-608) may 
generate an insubstantial amount of paperwork for the DOT and 
any operator seeking to take advantage of these pro-competitive 
opportunities. Major air carriers that propose domestic 
alliances would be subjected to a relatively insignificant 
amount of additional paperwork associated with the required DOT 
review of joint venture agreements (Sec. 610). The DOT's 
regional jet study (Sec. 611) and the GAO's small airport study 
(Sec. 612) may result in modest amounts of additional 
government paperwork.
  In Title VII, new requirements associated with regulating 
commercial air tours over national parks and developing air 
tour management plans would result in a relatively small amount 
of additional paperwork for the government and the affected air 
tour operators (Sec. 702). The FAA report on the effects of 
proposed park overflight fees would result in a small amount of 
additional paperwork (Sec. 705).

                      SECTION-BY-SECTION ANALYSIS

SECTION 1. SHORT TITLE; TABLE OF CONTENTS

  Section 1 cites the title of the bill as the ``Wendell H. 
Ford National Air Transportation System Improvement Act of 
1998.'' This section also contains a table of contents for the 
bill, as reported.

SECTION 2. AMENDMENTS TO TITLE 49, UNITED STATES CODE

  Section 2 provides that references in the bill to sections or 
provisions in the law are considered to be sections or 
provisions of title 49, United States Code.

                        TITLE I--AUTHORIZATIONS

SECTION 101. FEDERAL AVIATION ADMINISTRATION OPERATIONS

  Section 101 would provide authorizations for the FAA 
Operations account for fiscal years 1999, 2000, 2001 and 2002. 
In FY 1999, funding for FAA operations is proposed to increase 
from the FY 1998 level by about 5.4 percent to $5.6 billion. 
For the three remaining fiscal years, the authorization levels 
would increase at the expected rate of inflation.
  In an effort to address the problem of bird ingestions into 
aircraft engines, this section would authorize funds for 
wildlife mitigation programs and surveys.
  Funds would also be authorized to support a safety and 
security management program to provide training for aviation 
safety personnel, concentrating on representatives from 
countries that are not in compliance with international safety 
standards, but are trying to improve. The FAA would use open 
and competitive procedures to conduct the site selection.
  The Committee expects the FAA to continue to support the 
General Aviation and Vertical Flight program within the agency. 
The FAA has begun the process of revising its policies and 
procedures to make more effective use of the capabilities of 
rotorcraft. The Committee is optimistic that the air traffic 
control system in the future will be able to provide dispatch 
reliability, or instrument flight rules (IFR) capability, for 
both helicopters and the newest rotorcraft technology--
tiltrotor aircraft. The Committee anticipates that the FAA will 
revise its existing terminal instrument procedures (TERPS) and 
IFR regulations and procedures to facilitate the takeoff, 
flight and landing of helicopters and tiltrotor aircraft.
  The Committee also expects the FAA to continue working with 
the aviation industry and community in the effort to reduce the 
fatal accident rate. To that end, the FAA should sponsor an 
annual summit of leaders from the government and industry to 
address the most critical safety issues.
  Over time, the FAA has invested substantial resources in the 
development and maintenance of a large number of data bases. 
Responsibility and control over these data bases are not 
centralized, however. Instead they are spread among the 
agency's lines of business and other organizational elements 
that are the prime users of the data collected, and there is 
little agency-wide data integration. Consequently, the FAA may 
have become ``data rich and information poor.''
  Accordingly, the Committee believes that change is needed. 
The FAA should develop a data management plan that leads to: 
optimized data sharing among organizational elements; better 
control over the costs of data base management; the capability 
to review and analyze data on a subject as well as a functional 
basis; and enhanced capability of senior management to resolve 
time-critical questions and issues that may cut across agency 
organizational elements.
  A report on the progress toward the development of the plan 
should be made to the Committee not later than six months from 
the date this bill is enacted into law.
  The Committee is also aware that the safety inspection 
process is a critical component of improving safety. The 
process includes many facets, including inspection and 
enforcement. The Committee wants to ensure that the FAA has the 
resources needed to inspect and enforce. The GAO has noted that 
legal resources are a key component of the process and that 
those needs should be considered by the Administrator.

SECTION 102. AIR NAVIGATION FACILITIES AND EQUIPMENT

  Section 102 would provide authorizations for the FAA's F&E 
account for fiscal years 1999, 2000, 2001, and 2002. For FY 
1999, $2.13 billion is proposed for the F&E budget. For the 
three remaining fiscal years, the authorization levels would 
increase at the expected rate of inflation. Also, this section 
would reauthorize at least $30 million annually for the FAA to 
purchase precision instrument landing system equipment to meet 
the FAA's precision approach requirements and specifications. 
Because of the often confusing ways in which the agency makes 
reference to the costs of major ATC projects, this section 
would also require the FAA to establish cost estimates based on 
the life cycle of projects estimated to cost more than $50 
million.

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

  Section 103 would extend the contract authority through FY 
2002 for Airport Improvement Program (AIP) grants. This section 
would also extend the authority to make AIP grants from the 
Airport and Airway Trust Fund through FY 2002. The AIP account 
would be authorized at a level of $ 2.41 billion in FY 1999, 
with increases through FY 2002 as permitted under the most 
recent budget resolution. Without these extensions of 
authority, federal airport grants could not be made after 
September 30, 1998.

SECTION 104. REPROGRAMMING NOTIFICATION REQUIREMENT

  Section 104 would require the FAA to notify the authorizing 
committees of the Senate and House prior to reprogramming 
amounts authorized for the operations, F&E, or AIP accounts.

SECTION 105. AIRPORT SECURITY PROGRAM

  Section 105 would authorize the FAA to carry out at least one 
project to test and evaluate innovative airport security 
systems and related technology, including explosive detection 
systems in an airport environment. Not less than $5 million 
would be authorized to be spent from the AIP discretionary fund 
for this program. The Committee anticipates that an open 
competition will occur for the site selections for the program.

SECTION 106. CONTRACT TOWER PROGRAM

  Section 106 would authorize the appropriation of such sums as 
may be necessary to carry out the Federal contract tower pilot 
program under section 41747.

                        TITLE II--AIP AMENDMENTS

SECTION 201. REMOVAL OF THE CAP ON DISCRETIONARY FUND

  Section 201 would repeal the provision that imposes a $300 
million ``cap'' on the discretionary fund. Under current law, 
if the amount of money in the discretionary fund exceeds $300 
million, the excess funds are equally divided among small 
airports, noise-related programs, and the Military Airport 
Program (MAP). Repealing this provision would increase the 
amount of discretionary funds available to the FAA for grants 
for major airport capacity projects.
  The cap was created at a time when the AIP funding level was 
not expected to exceed $1.5 billion. With the higher AIP 
funding levels that are expected in the next few fiscal years 
($1.7 billion or greater), this provision would have the 
unintended effect of channeling disproportionate amounts of 
money to small airports, noise programs, and the MAP. While 
those are important programs, the Committee believes that the 
FAA should fund discretionary projects based on objective, 
merit-based criteria developed to improve and enhance the 
safety, security, and capacity of the entire national airport 
system.

SECTION 202. INNOVATIVE USE OF AIRPORT GRANT FUNDS

  Section 202 would codify an existing innovative airport 
funding program, remove the program's expiration date, and 
expand the number of projects eligible for the program from 10 
to 20. The Federal Aviation Reauthorization Act of 1996 
authorized a demonstration program to permit the FAA to make 
grants of AIP funds for up to 10 projects to test and evaluate 
the following three innovative financing mechanisms or 
techniques: payment of interest, credit enhancements (such as 
municipal bond insurance), and flexible non-federal matching 
requirements. The Committee is encouraged by the types of 
projects included in the first 10 projects. The extension is 
intended to provide other airports an opportunity to 
participate.

SECTION 203. MATCHING SHARE

  Section 203 would allow small airports to fund AIP projects 
utilizing a more flexible matching share ratio. Instead of the 
strict 90-percent federal/10-percent local matching share 
requirement for each project, the match requirement would be 
modified to one that allows not more than a 90-percent federal 
share for all projects at airports other than medium and large 
hubs.

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

  Section 204 would increase the amount of AIP funds allocated 
to the noise set-aside. The apportionment from the 
discretionary fund for grants for airport noise compatibility 
planning, and for carrying out airport noise compatibility 
programs, would increase from 31 percent to 35 percent.
  The Committee expects the FAA to allocate noise mitigation 
money based on need and appropriate merit-based criteria, such 
as the number of individuals impacted, the degree of noise 
impact, and other relevant factors, including whether an 
airport is high density and would receive additional traffic as 
a result of this bill.

SECTION 205. TECHNICAL AMENDMENTS

  Section 205 would make numerous technical changes to improve 
the implementation of the AIP program, and to correct 
inadvertent errors due to amendments and recodification changes 
to title 49.
  Subsection (a) would amend the entitlement fund provision 
(section 47114) to correct a reference to a now repealed 
provision of title 49 (section 47117(e)(1)(C)). The original 
intent was to allow the use of state-apportioned funds at 
certain ``grandfathered'' airports in Alaska and at all public 
airports in Puerto Rico. The revised language is more flexible 
in that it not only restores the intent of the statute with 
respect to Puerto Rico, but also allows the use of the funds 
for any public airport in Alaska. It also amends the section to 
allow state apportioned funds to Hawaii to be used on primary 
airports. Normally such funds are restricted to use at 
nonprimary airports. However, unlike most states, Hawaii does 
not have a broad range of airport types and activity levels.
  Subsection (b) would amend section 47114(e) to restore the 
meaning of the provision prior to recodification of title 49 in 
1994. Section 47114(e) provides a method of apportioning funds 
for airports in Alaska that historically has been interpreted 
as authorizing a supplemental apportionment, not an alternative 
apportionment as the recodification characterized it. Currently 
the supplemental apportionment amounts to approximately $10.6 
million annually and is available to nonprimary airports and 
certain grandfathered airports in Alaska. This section would 
further amend 47114(e) to provide greater flexibility by 
allowing the funds to be used at any public airport in Alaska.
  Subsection (c) would repeal a 110 percent limitation on the 
supplemental apportionment to any single commercial airport in 
Alaska. The intent of the provision has been unclear and its 
implementation has caused confusion. In the interest of 
providing greater financial flexibility to Alaska in the use of 
the supplemental apportionment, the limitation is removed.
  Subsection (d) would amend the definition of the 
discretionary fund to remove the portion of the fund known as 
the ``small hub fund'' and add the monies from that fund to the 
small airport fund. This change would put the small hub fund in 
a more appropriate place because its funds are derived from the 
same source (i.e., AIP funds not apportioned to large and 
medium hub airports because they collect PFCs) and have similar 
restrictions.
  Subsection (e) would add a new paragraph to section 47108 
that provides that a multi year development project at a 
primary airport that is funded through a multi year agreement 
would retain eligibility for funding to complete the project 
even if the airport loses its status as a primary airport. Such 
a project would be eligible for discretionary funds, subject to 
funding availability. Projects in this circumstance are 
relatively low-cost and few in number; however, this provision 
will help avoid potential for default or abandonment of 
projects resulting from changes in airport status beyond the 
control of the sponsor.
  The FAA reportedly plans in the near future to revise its 
administrative guidance for the designation of reliever 
airports. Such a revision would tighten the eligibility 
criteria. According to the agency, there are 22 privately-owned 
airports that now qualify for federal aid as reliever airports. 
Subsection (f) would grandfather these airports into the 
program so that they may remain eligible for federal aid and 
continue to play an effective role in the national airport 
system.
  Subsection (g) would remove projects at reliever airports 
from eligibility for letters of intent (LOI) under section 
47110(e). With this change, only projects at primary airports 
would be eligible for LOIs.
  Subsection (h) would amend current law to prohibit an airport 
from charging a PFC for any passenger traveling in Alaska 
aboard an aircraft with fewer than 20 seats.
  Subsection (i) would codify a current regulation (14 C.F.R. 
158.11) that allows public airport operators to waive PFC 
collections for certain classes of air carriers, such as air 
taxis, provided that each class constitutes no more than 1 
percent of the total number of passengers enplaned annually at 
the airport at which the PFC is imposed. This section also 
provides the Secretary the authority to expand the current 
regulation so that primary airports can take advantage of PFCs, 
but not adversely affect air service to isolated communities 
like many in Alaska, with few or no alternatives to air travel.
  Subsection (j) would amend the provisions of Subchapter II 
(Surplus Property for Public Airports) of chapter 471 to 
restore the original intent of the provisions prior to the 
recodification of title 49. Subchapter II is the restatement of 
section 13(g) of the Surplus Property Act of 1944. This section 
restores the use of the terms ``convey'' or ``conveyance'' 
instead of ``gift.'' Also, this section expressly provides that 
priority consideration is given to requests from public 
agencies for surplus government property to be used for public 
airport purposes.
  Subsection (k) would increase the cargo airport entitlement 
share of the AIP to 3 percent from the current 2.5 percent. The 
cargo entitlement share had been 3.5 percent prior to 1996.
  Subsection (l) would allow flexibility in pavement design 
standards by permitting the use of state highway specifications 
for airfield pavement construction at general aviation airports 
serving aircraft weighing less than 60,000 pounds. If airports 
take advantage of this provision, they would be prohibited for 
10 years from subsequently seeking funds to strengthen the 
runway. The Committee recognizes that the lower highway 
standards may be less costly to meet than the FAA standards, 
giving the FAA the ability to spread AIP dollars further. If 
airports choose to overlay or build airfield pavement using the 
lower standards, however, the Committee does not expect the FAA 
later to support projects to strengthen those runways.

SECTION 206. REPEAL OF PERIOD OF APPLICABILITY

  Section 206 would repeal a ``sunset'' provision that limits 
the applicability of many current AIP formulas and 
requirements. Section 125 of the Federal Aviation 
Reauthorization Act of 1996 provided that certain provisions of 
chapter 471 (the airport development chapter of title 49) that 
were amended by the 1996 Act would revert to their unamended 
form as of September 30, 1998. These provisions involve 
sections 47114 (Apportionments), 47115 (Discretionary Fund), 
47117 (Use of apportioned amounts), and 47118 (Designating 
current and former military airports). Because the amendments 
made by the 1996 Act, together with the changes proposed by 
this bill, provide for a strong and effective AIP, a return to 
pre-1996 formulas and requirements is unwarranted.

SECTION 207. REPORT ON EFFORTS TO IMPLEMENT CAPACITY ENHANCEMENTS

  Section 207 would require the FAA to report on efforts, 
including the time frame, to implement air transportation 
system capacity enhancements through technology improvements, 
such as precision runway monitoring systems.

SECTION 208. PRIORITIZATION OF DISCRETIONARY PROJECTS

  Section 208 would encourage airports to use their entitlement 
funds for their highest priority projects before proceeding to 
lower priority projects. Airports that fund their low priority 
projects with entitlement funds, yet simultaneously apply for 
discretionary funds for their high priority projects, would 
have their discretionary fund applications downgraded 
accordingly. This provision is based upon a recommendation made 
by the DOT's Office of the Inspector General in its recent 
report on the DOT's discretionary spending programs.

SECTION 209. PUBLIC NOTICE BEFORE GRANT ASSURANCE REQUIREMENT WAIVED

  Section 209 would require the FAA to provide 30-days public 
notice in its process for waiving airport grant assurances. The 
Committee is aware that the provision may cause unnecessary 
delay and increase the burdens on the FAA in responding to 
comments. The Committee is concerned, however, that if major 
grant assurances are waived without an opportunity for the 
public to be made aware, the air transportation system could 
lose vital assets.

SECTION 210. DEFINITION OF PUBLIC AIRCRAFT

  Section 210 would amend the definition of public aircraft to 
include aircraft that are operated for the purpose of 
transporting prisoners. This change recognizes that 
transporting prisoners is a legitimate government function. 
Under this provision, the public aircraft designation for a 
prisoner transport would not be lost if law enforcement 
agencies shared the costs of operating such a flight.

SECTION 211. TERMINAL DEVELOPMENT COSTS

  Section 211 would permit airports to utilize PFC funds for 
the construction of the shell of a terminal to enable 
additional air service by non-dominant carriers. Airports would 
be able to utilize PFC funds for the shell of such a terminal 
building, including the appurtenant floors, walls, heat, air 
conditioning, ventilation and wiring. It is important for 
airports that are gate-restricted, or have agreements that 
allow the dominant carriers to dictate construction, to have 
sufficient flexibility to finance the noncommercial portions of 
new terminal structures to the greatest extent possible to 
accommodate additional, competitive carriers.

                 TITLE III--AMENDMENTS TO AVIATION LAW

SECTION 301. SEVERABLE SERVICES CONTRACTS

  Section 301 would expressly provide authority to the FAA 
regarding severable service contracts. With the enactment of 
FAA procurement reform in 1996, there is some question whether 
the FAA still has the flexibility it previously had under the 
Federal Acquisition Streamlining Act of 1994 (FASA) to enter 
into contracts for procurement of severable services that begin 
in one fiscal year and end in another. (See 41 U.S.C. 253l.) 
The FAA uses this authority, particularly with regard to air 
traffic services, to enter into numerous contracts for 12-month 
periods that do not necessarily coincide with the 12 months of 
a single fiscal year. This flexibility dramatically reduces the 
administrative work of having all contracts expire at the end 
of a fiscal year.

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

  Section 302 would make foreign carriers eligible for waivers 
under the Airport Noise and Capacity Act of 1990 (ANCA). ANCA 
originally provided a limited waiver, under certain conditions, 
from the December 31, 1999, compliance date for air carriers to 
meet stage 3 noise levels. While both domestic and foreign 
carriers are subject to the ANCA's compliance requirements, 
only domestic air carriers are eligible for the waiver. Foreign 
air carriers view this disparate treatment as a violation of 
the Chicago Convention and have reportedly raised this issue in 
their comments on ANCA rulemakings. The FAA does not anticipate 
granting any waivers to foreign or domestic air carriers, 
except in exceptional circumstances.

SECTION 303. GOVERNMENT AND INDUSTRY CONSORTIA

  Section 303 would codify a provision from the Omnibus 
Consolidated Appropriations Act of 1997 (P.L. 104-208, section 
5501) that allows the FAA to establish consortia of government 
and aviation industry representatives at individual airports to 
provide advice on aviation security and safety. It would allow 
the FAA to continue and expand this successful program, which 
has provided local input for enhancements to aviation security.

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

  Section 304 provides the legislative authority to implement 
what is known as Article 83 bis of the Convention on 
International Civil Aviation (Chicago Convention), 7 December 
1944, 61 Stat. 1180, T.I.A.S. No. 1591, 15 U.N.T.S. 295.
  This section would provide implementing legislation for 
Article 83 bis by amending section 44701, General Requirements, 
to add a new subsection. It would permit the FAA, through 
bilateral agreement, to relinquish responsibility for the U.S.-
registered aircraft for which safety oversight responsibility 
is transferred abroad, and accept responsibility for the 
foreign-registered aircraft whose oversight is transferred to 
the United States. The transferred aircraft would be treated, 
for all practical safety oversight purposes only, as if they 
were on the registry of the other State.

SECTION 305. FOREIGN AVIATION SERVICES AUTHORITY

  Section 305(a) would restate the statutory authority that 
allows the FAA to charge fees for overflights of the United 
States by aircraft that neither land nor take off domestically. 
The restated provision would prohibit the FAA from imposing 
overflight fees on the domestic flights of carriers from a 
neighboring country that happen to pass through U.S. airspace. 
The prohibition would apply only if that neighboring country 
did not charge overflight fees to U.S. carriers for our 
domestic flights that happen to pass through its airspace. The 
Committee expects that the U.S. and Canada, for example, which 
exchange air traffic control responsibilities along the border, 
will enter into a reciprocity agreement whereby neither one 
would charge the other for overflights that are purely domestic 
in origin and destination.
  Section 305(b) would clarify the FAA's authority to collect 
fees for foreign aviation services provided by the FAA, such as 
those provided at foreign repair stations and for other foreign 
activities, by specifically authorizing the collection of fees 
through an amendment to 49 U.S.C. 45301. The FAA has collected 
such fees since 1995. This explicit authorization is needed, 
however, given subsequent revisions to section 45301 that 
caused some confusion over the FAA's authority in this area. 
This subsection also would allow for full recovery of the costs 
of overflights and related services provided by the FAA, by 
allowing the use of generally accepted accounting principles 
and internationally accepted principles of setting fees for 
such overflights, as well as the value derived by the recipient 
of the services, in determining the costs of such services and 
in establishing overflight fees. The FAA's authority requires 
clarification because of a recent U.S. Court of Appeals 
decision that invalidated the methodology that the FAA used to 
establish overflight fees. The charges for such overflights are 
intended, in part, to help fund the Essential Air Service 
program.

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

  Section 306 would provide broader authority to the FAA to 
determine what circumstances warrant a criminal history record 
check for persons performing security screening of passengers 
and cargo.
  This section also would make two technical improvements to 
the Pilot Records Improvement Act of 1996, as amended in 1997 
by P.L. 105-142. First, the section clarifies that the records 
that air carriers or other persons are required to provide in 
response to a request are those records that relate to the 
individual's performance as a pilot. Second, the section 
provides that an air carrier may permit an individual to begin 
service as a pilot, notwithstanding the fact that otherwise-
required records from a foreign government or foreign entity 
have not been received, if the air carrier has made a 
documented good faith attempt to obtain the information.

SECTION 307. AVIATION INSURANCE PROGRAM AMENDMENTS

  Section 307(a) would amend the aviation insurance program in 
order to avert a potential problem in the program by helping 
ensure prompt payment in the event of a loss. It is possible 
that an air carrier that has obtained aviation insurance from 
the FAA (also known as war risk insurance) may sustain a 
physical damage loss that is covered by that insurance, but 
exceeds the amount available for repayment in the aviation 
insurance revolving fund. In such an event, the FAA's full 
payment of the carrier's claim would need to await 
congressional action to appropriate a sufficient amount into 
the revolving fund. Because of the possibility of delays in the 
appropriations process, the carrier may wish to obtain ``prompt 
payment'' insurance from a commercial insurer, to ensure that 
the carrier receives payment in a time frame commensurate with 
its financial obligations. The ``prompt payment'' insurance 
contract between the carrier and the commercial insurer would, 
in that case, provide that the commercial insurer would be 
subrogated to the air carrier's rights against the U.S. 
Government under the war risk insurance. After the necessary 
funds have been appropriated to the revolving fund, the FAA 
would reimburse the commercial insurer for its payment to the 
carrier, provided that the payment was for a loss covered by 
the war risk insurance and that the payment had been approved 
by the FAA.
  It is not clear under current law that the commercial insurer 
has a right of action against the Government to recover an 
approved payment for a covered loss, when an appropriation to 
the revolving fund is delayed. The amendment made by this 
section would clarify that right and thereby make it easier for 
air carriers to obtain ``prompt payment'' insurance.
  Section 307(b) would extend the authorization of the aviation 
insurance program through December 31, 2003. The program is now 
authorized through December 31, 1998.

SECTION 308. TECHNICAL CORRECTIONS TO CIVIL PENALTY PROVISIONS

  Section 308 would make several changes to the FAA's civil 
penalty provisions. The first would delete references in 
section 46301 to sections 46302 (False information) and 46303 
(Carrying a weapon). Those two sections already provide for a 
maximum civil penalty of $10,000 for each violation, as did 
their predecessor sections, 901(c) and (d) of the Federal 
Aviation Act of 1958 (FAA Act), before the 1994 recodification 
project. Section 46301(a)(1)(A) sets a maximum penalty of 
$1,000 for a variety of violations. Deleting references to 
these sections would correct a recodification error.
  The second change would replace a reference to ``individual'' 
with ``person,'' a term that would include not only individuals 
but also entities such as air carriers or airports. Section 
46301(d)(2) gives the Administrator authority to impose civil 
penalties for violations of the provisions specified. Paragraph 
(d)(2) does not limit this authority to individuals. It follows 
that the authority includes civil penalty cases against all 
persons, not just individuals. Therefore, section 
46301(d)(7)(A) would be amended to include actions against 
entities other than individuals.
  The third amendment would add a reference in the judicial 
review section to orders of the Administrator. This would be 
consistent with section 46301(d)(2), which gives the 
Administrator specific authority to assess administratively 
civil penalties not exceeding $50,000.

                TITLE IV--TITLE 49 TECHNICAL CORRECTIONS

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

  Section 401 would restate section 106(g) of title 49. The 
original enactment that created the Department of 
Transportation in 1966 (P.L. 89-670; October 15, 1966) 
contained a provision (paragraph 6(c)(1)) stating the FAA 
Administrator's duty to carry out aviation safety functions in 
certain sections and certain titles of the FAA Act. By 
referring to titles of the FAA Act in some cases rather than 
specific sections, paragraph 6(c)(1) had the effect of being a 
``container''--that is, whenever a new section was added to 
titles VI, VII, IX, and XII of the FAA Act, the new section was 
automatically included in the listing of the Administrator's 
aviation safety duties.
  In 1983, paragraph 6(c)(1) of the 1966 DOT Act was replaced 
by 49 U.S.C. 106(g) as part of a recodification project. The 
new section 106(g) restated the original language closely and 
referred to the same list of titles of the FAA Act (and thus 
retained the same ``containers"). In 1994, the recodification 
project was completed by enactment of P.L. 103-272 (July 5, 
1994). As part of the project, the FAA Act was repealed in its 
entirety and its provisions were enacted into positive law as a 
portion of title 49. This meant that the 106(g) references to 
titles of the FAA Act no longer functioned, and the 1994 
restatement took the conservative approach of restating 106(g) 
by listing every section found in the listed titles on the date 
of enactment. This ensured precision in the restated text of 49 
U.S.C. 106(g).
  This approach to restatement of section 106(g) without 
reliance on ``containers'' has produced an unintended anomaly. 
In its aviation safety enactments subsequent to July 1994, 
Congress has added new safety provisions to Part A of Subtitle 
VII of title 49 (which restates the FAA Act of 1958). As just 
noted, merely including a new provision in a particular title 
of the FAA Act (for example, title VI) would, in the past, have 
had the effect of also including it within the coverage of 
section 106(g). In contrast, inclusion in title VI's 
counterpart (chapter 447) no longer does this automatically 
because of the changed drafting approach in 106(g). An example 
of a provision recently added to chapter 447 (but not included 
in section 106(g)'s coverage, as would have likely been the 
case in the past) is 49 U.S.C. 44724 (Manipulation of flight 
controls).
  Congress intended inclusion of section 44724 and several 
other recently enacted safety provisions in the coverage of 
section 106(g). Future drafting of new safety provisions, for 
inclusion in selected chapters of title 49, would be simplified 
by returning to the ``container'' approach to section 106(g). 
Accordingly, this section of the bill contains a proposed 
restatement of section 106(g) to accomplish this result. 
Subsection (b) would ensure that the change cannot be construed 
to change substantive law in any respect.

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

  Section 402 would restate section 44909 of title 49, which 
specifies that an air carrier shall provide a ``passenger 
manifest'' (a list of passengers aboard a flight) for its 
international flights, and that the manifest ``shall'' include 
certain information. However, the original enactment (now 
repealed) provided that the manifest ``should'' include certain 
information, making explicit the flexibility afforded the 
Secretary of Transportation in specifying the information 
included in the manifest requirement (see Section 203 of P.L. 
101-604, November 16, 1990). In order to make this flexibility 
clearer, and in recognition that the 1994 recodification 
expressly stated that it made no substantive change in law, the 
proposed technical correction would replace the word ``shall'' 
with the original word ``should'' in 49 U.S.C. 44909(a)(2).

SECTION 403. TYPOGRAPHICAL ERRORS

  Section 403 consists entirely of technical changes to title 
49, United States Code, that are of a nonsubstantive nature and 
would correct typographical errors. These corrections were 
recommended by the DOT.

                         TITLE V--MISCELLANEOUS

SECTION 501. OVERSIGHT OF FAA RESPONSE TO YEAR 2000 PROBLEM

  Section 501 would require the FAA to report to the Senate and 
House authorizing committees on the FAA's progress in dealing 
with the Year 2000 data processing issue. The reports may be 
verbal or written, so as not to cause the FAA to waste 
unnecessary time and resources on drafting lengthy reports to 
Congress. The Committee expects the FAA specifically to address 
periodic reports that the Air Transport Association (ATA) plans 
to craft on this issue regarding the FAA's progress on Year 
2000 compliance.

SECTION 502. CARGO COLLISION AVOIDANCE SYSTEMS DEADLINE

  Section 502 would require all large cargo aircraft to be 
equipped with collision avoidance equipment by the end of 2002. 
This section would not require that a particular type of 
collision avoidance system (e.g., radar-based) be installed on 
such aircraft, but rather that a decision be made on the types 
of technologies that appear to be available in the near term. 
Currently, only passenger aircraft are required to be equipped 
with collision avoidance systems.

SECTION 503. RUNWAY SAFETY AREAS

  Section 503 would require the FAA to initiate rulemakings 
with regard to the following: (1) improving runway safety 
areas, which are essentially runway extensions that provide a 
landing cushion beyond the ends of runways at certificated 
airports, and (2) requiring the installation of precision 
approach path indicators (PAPI), which are visual vertical 
guidance systems for runways. Airline pilots have highlighted 
these matters as important safety issues. Existing FAA 
regulations call for an overrun area of 1000 feet in length at 
the end of a runway. The FAA has tested materials that are 
expected to shorten the runway safety areas. If successful, 
such efforts could significantly reduce the cost of runway 
extensions.

SECTION 504. AIRPLANE EMERGENCY LOCATORS

  Section 504 would require nearly all fixed-wing aircraft in 
air commerce to be equipped with emergency locator transmitters 
by 2002. Many aircraft are currently required by statute or 
regulation to be equipped with emergency locator transmitters, 
which can help rescuers and National Transportation Safety 
Board investigators find a downed plane more quickly. Aircraft 
powered by turbojets and those used by scheduled air carriers 
are exempt, however. This section would narrow the exemption 
and require additional categories of aircraft to be equipped 
with emergency locator transmitters after 2001. Exempted from 
the requirements would be aircraft used by manufacturers in 
development exercises, and agricultural aircraft used to spray 
crops.

SECTION 505. COUNTERFEIT AIRCRAFT PARTS

  Section 505 would prohibit anyone, an employee or a company, 
who is convicted of installing, producing, repairing, or 
selling counterfeit aviation parts (sometimes known as bogus 
parts) from having or obtaining an FAA certificate. Any person 
holding virtually any type of FAA certificate, including air 
carriers, repair stations, and manufacturers, would be 
prohibited from employing anyone convicted of an offense 
involving counterfeit parts.

SECTION 506. FAA MAY FINE UNRULY PASSENGERS

  Section 506 would give the FAA explicit authority to fine (up 
to $10,000) unruly airline passengers who interfere with the 
operation or safety of a civil flight.

SECTION 507. HIGHER INTERNATIONAL STANDARDS FOR HANDICAPPED ACCESS

  Section 507 would require the Secretary of Transportation to 
work with appropriate international organizations to set higher 
standards (similar to those in the U.S.) for the air 
transportation of disabled passengers, particularly in cases 
where a foreign air carrier code-shares with a domestic air 
carrier.

SECTION 508. CONVEYANCES OF UNITED STATES GOVERNMENT LAND

  Section 508 would authorize the FAA to waive deed 
restrictions on surplus airport property, as long as the 
permitted development supports and complements the development 
of the airport, and all revenues remain on the airport.

SECTION 509. FLIGHT OPERATIONS QUALITY ASSURANCE RULES

  Section 509 would require the FAA to accelerate its 
rulemaking on Flight Operations Quality Assurance (FOQA). FOQA 
is a program under which airlines and their crews share 
operational information, including data captured by flight data 
recorders. Sanitized information about crew errors is shared, 
to focus on situations in which hardware, air traffic control 
procedures, or company practices create hazardous situations. 
Through its rulemaking, the FAA would provide assurance that 
information obtained from the program would not be used for 
enforcement purposes. As the National Civil Aviation Review 
Commission and others have pointed out, the sharing of 
information and data will be a crucial element in the effort to 
cut the fatal accident rate by 80 percent by 2005.

SECTION 510. WIDE AREA AUGMENTATION SYSTEM

  Section 510 would require the FAA to identify or develop a 
plan to maintain a backup system to the Wide Area Augmentation 
System (WAAS), if one is necessary to provide satellite-based 
navigation and landing approach capabilities for civilian use. 
Within six months, the FAA would report to Congress on a 
specific plan and timetable for implementing WAAS, including a 
determination of the intended ultimate use of WAAS (i.e., 
whether it will be the primary or sole means of navigation). 
This section would authorize such sums as are necessary for 
this purpose.

SECTION 511. REGULATION OF ALASKA AIR GUIDES

  Section 511 would require the FAA to reissue the notice to 
Alaska guide pilots on the applicability of regulations 
recently imposed on such guide pilot operations.

SECTION 512. APPLICATION OF FAA REGULATIONS

  Section 512 would require the FAA to consider, when amending 
federal aviation regulations in a manner affecting intrastate 
aviation in Alaska, the extent to which Alaska is not served by 
other modes of transportation. It would be within the 
discretion of the FAA, as it deems appropriate, to establish 
regulatory distinctions with regard to these considerations. 
This section codifies a provision that was included in the 
Federal Aviation Reauthorization Act of 1996.

SECTION 513. HUMAN FACTORS PROGRAM

  Section 513 would require the FAA, in an effort to improve 
training in the human factors arena, to establish an oversight 
committee for the execution of Advanced Qualification Programs, 
which are alternative methods of qualifying, training, 
certifying, and ensuring the competency of flight crews and 
other operations personnel. In addition, the FAA, NTSB, and the 
industry would establish a process to tie human factors 
training to accident investigations. The FAA also would be 
required to address the concerns and recommendations of the 
National Research Council (NRC) in its recent report on air 
traffic control automation. The FAA, working with the industry, 
would develop specific training curricula to address critical 
human factors safety concerns, including controlled flight into 
terrain, which is a significant cause of accidents worldwide.

SECTION 514. INDEPENDENT VALIDATION OF FAA COSTS AND ALLOCATIONS

  Section 514 would require the DOT Inspector General to 
initiate an independent validation and assessment of the cost 
accounting system that is currently under development by the 
FAA and due for partial implementation at the beginning of 
fiscal year 1999. The purpose of this section is to ensure that 
the agency's method for capturing and distributing its overall 
costs is appropriate and reasonable. Whether or not this system 
is deployed to develop fee systems to fund the FAA, it is 
critical to improve the performance of the FAA. The independent 
verification should give users more confidence in the system.

SECTION 515. WHISTLEBLOWER PROTECTION FOR FAA EMPLOYEES

  Section 515 would provide FAA whistleblowers with the 
authority to seek redress if they are subject to retaliation 
for their actions. In 1995, Congress gave the FAA the authority 
to reform its personnel system in order to address the unique 
demands of the agency's workforce. While it exempted the FAA 
from most of the personnel requirements under title 5, United 
States Code, certain enumerated provisions remained applicable 
to the FAA, including 5 U.S.C. 2302(b), relating to 
whistleblower protections. While the whistleblower protections 
of title 5 were maintained for FAA employees, the law did not 
specifically reference provisions for the enforcement of those 
protections. Last year, the Department of Justice's Office of 
Legal Counsel confirmed this and opined that an FAA employee 
could not file a claim alleging retaliatory action with the 
U.S. Office of Special Counsel and the Merit Systems Protection 
Board (MSPB). The DOT's Inspector General recommended that such 
procedures be available to FAA employees. The amendment 
proposed by this section would provide FAA whistleblowers with 
the authority to seek redress from OSC and the MSPB.

SECTION 516. REPORT ON MODERNIZATION OF OCEANIC ATC SYSTEM

  Section 516 would require the FAA to report on its plans to 
modernize the oceanic air traffic control system. Such plans 
would include a budget for the program, a determination of the 
requirements for modernization, and, if necessary, a proposal 
to fund the program. The Committee believes that it is critical 
that modernization of the oceanic system move forward. Other 
countries appear willing to take control over vast areas of 
oceanic airspace, if the U.S. cannot modernize. Modernization 
should open up more routes, increase efficiency, and save 
consumers time and money for air travel over the oceans.

SECTION 517. REPORT ON AIR TRANSPORTATION OVERSIGHT SYSTEM

  Section 517 would require the FAA, beginning in 1999, to 
report biannually to the Congress on the air transportation 
oversight system (ATOS) program announced by the agency on May 
13, 1998. The report would include details on the training of 
inspectors, the number of inspectors using the system, air 
carriers subject to the system, and the budget for the system.

SECTION 518. RECYCLING OF EIS

  Section 518 would allow the Secretary of Transportation to 
authorize the use, in whole or in part, of a completed 
environmental assessment or environmental impact study for a 
new airport project that is substantially similar in nature to 
the one constructed pursuant to such an environmental review. 
This could avoid the unnecessary duplication of expense and 
effort for airport sponsors.
  This section is intended to provide to the Secretary 
discretion to utilize data contained in previously completed 
work for an Environmental Assessment (EA) or an Environmental 
Impact Statement (EIS) for a new project, if the new project is 
substantially similar in nature and scope to the project for 
which the previously completed EA or EIS was completed. For 
example, New Orleans International Airport has submitted drafts 
of an EIS report to the FAA on a parallel instrument flight 
rules (IFR) runway, and is in the final stage of completion of 
an EA for the conversion of a taxiway into a visual flight 
rules runway. This section would provide discretion to the 
Secretary to utilize data and information contained in these 
reports for a new EIS report that is being prepared for a 
proposed parallel IFR runway at the New Orleans International 
Airport.

SECTION 519. PROTECTION OF EMPLOYEES PROVIDING AIR SAFETY INFORMATION

  Section 519 would provide employees of airlines, and 
employees of airline contractors and subcontractors, with 
statutory whistleblower protection. This section is a modified 
version of S. 100, the Aviation Safety Protection Act of 1997. 
The language in this section is similar to whistleblower 
protection laws that cover employees in other industries, such 
as nuclear energy.
    This section would provide protection to aviation employees 
from retaliation by their employers when reporting violations 
to federal authorities. It would provide a Department of Labor 
complaint procedure for employees who experience employer 
reprisal for reporting such violations, and assures that there 
are strong enforcement and judicial review provisions for fair 
implementation of the protections. The provision also would 
protect employers by requiring that an employee who files a 
complaint pay up to $5000 in attorneys' fees, if the Department 
of Labor determines that the complaint was frivolous or brought 
in bad faith. Also, employees who are subject to ongoing 
disciplinary proceedings would not be able to use the 
protections in this provision to their benefit.

                TITLE VI--AVIATION COMPETITION PROMOTION

SECTION 601. PURPOSES

  Section 601 explains that the purpose of the four-year pilot 
program established under this title would be to facilitate 
incentives and projects that will help small communities 
improve their air access to business markets, through public-
private partnership.

SECTION 602. ESTABLISHMENT OF SMALL COMMUNITY AVIATION DEVELOPMENT 
                    PROGRAM

  Section 602 would require the Secretary of Transportation to 
establish a four-year pilot aviation development program and to 
designate a program director. This section lists the program 
director's functions.
  Beginning in 1999, the program director would report annually 
to the Secretary of Transportation and to Congress on the 
availability of air transportation services in small 
communities, comparisons of airfares in large and small 
communities, the factors that inhibit quality and affordable 
services in small communities, and policy recommendations to 
address these factors.

SECTION 603. COMMUNITY-CARRIER AIR SERVICE PROGRAM

  Section 603 would authorize communities (a term used 
interchangeably with consortia of communities) to assess their 
air service requirements and submit their assessments and 
service proposals to the program director. The program director 
would select communities for participation. The program 
director would invite air carriers to offer service proposals 
in response to or in conjunction with the communities' air 
service assessments.
  The program director would work with small communities and 
air carriers to facilitate the initiation of service. He or she 
would also designate an airport in the program as an Air 
Service Development Zone and work with the community on means 
to attract business to the area surrounding the airport.
  The program director would be able to provide financial 
assistance to communities of up to $500,000 per community, but 
only if the community provides a matching share of 25 percent. 
No more than 40 communities or consortia of communities may 
participate in the four-year pilot program. No more than four 
communities within a state can participate at any given time. 
The community must have established a public-private 
partnership to facilitate service to the public. The program 
director could obligate up to $30 million over the life of the 
four-year program.
  This section focuses on ways to encourage commercial service 
to small communities throughout the U.S. that have not 
benefitted from airline deregulation. The section seeks to 
develop public-private partnerships with the local communities, 
air carriers, federal, state, and local officials, to find ways 
to increase service through local initiatives. This program is 
not intended to duplicate the Essential Air Service program, 
which provides a per person subsidy to ensure service to 
communities. The Committee is aware of a number of local 
initiatives that were created to increase ridership and to 
refocus service patterns for small communities. This section 
would continue to encourage and facilitate those kinds of 
initiatives, bringing together whatever federal resources or 
information are available with the local commitment to work 
with the users of air transportation.
  This section incorporates much of S. 1968. The bill as 
originally introduced would have provided up to $100 million 
over five years for a pilot program for up to 40 communities or 
consortia of towns. The bill as reported provides a more 
focused level of funding of $30 million, but retains the number 
of communities in the program.
  One of the key elements in the section is the requirement 
that local communities contribute 25 percent of the funding. If 
communities are to increase service, it will be because of a 
local commitment to use the services offered. The local 
contribution can be either an indirect (e.g., seat guarantees) 
or direct funding of activities. The program would terminate in 
four years. It is anticipated that the federal portion of 
funding for a community would decline over the course of the 
community's involvement with the program.
  This section also would establish a four-year pilot program 
to enable applicants to contract for Level I air traffic 
control services at up to 20 facilities (small airports) not 
eligible for participation in the federal contract tower 
program. The 20 airports are not currently eligible, or have 
been notified by the FAA that they may no longer be eligible, 
to participate, according to FAA guidelines in the contract 
tower program. With the cost sharing, however, these airports 
would be able to meet the FAA standards. The program also would 
enable up to three of the participants to cost-share in the 
construction of such towers, with a cap on FAA expenditures for 
each facility of no more than $1 million. The Committee 
believes that this type of program will provide additional 
safety measures for smaller airports.

SECTION 604. FUNDING AUTHORITY

  Section 604 provides that $20 million of the $30 million in 
funds used to support the pilot programs in Sections 602 and 
603 (except for the contract tower program) would be derived 
from the account that maintains the fee collections from 
foreign aircraft overflights of the United States. The 
remaining $10 million would be subject to general 
appropriations.

SECTION 605. MARKETING PRACTICES

  Section 605 would require that, within 180 days of enactment, 
the Secretary review the marketing practices of air carriers 
that may inhibit the availability of quality, affordable air 
transportation services to small and medium-sized communities. 
If the Secretary finds that these practices constitute an 
inhibition, the Secretary would promulgate regulations that 
address the problems.

SECTION 606. SLOT EXEMPTIONS FOR NONSTOP REGIONAL JET SERVICE

  This section would allow 90 days for the Secretary to approve 
or deny applications for slot exemptions to provide nonstop 
regional jet air service between a nonhub or small airport and 
the high density airports already subject to exemption 
authority (Chicago O'Hare, New York LaGuardia, and New York 
JFK).
  The Secretary must ensure that the carrier can operate at 
least two daily roundtrip flights per community identified in 
the application, but not more than three daily roundtrip 
flights to that community. In making this determination, the 
Secretary may take into consideration the slots already used by 
the applicant.
  After one year, if the air carrier can demonstrate 
unmitigable losses, the air carrier could apply to the 
Secretary to use the exemption to serve a different nonhub or 
small hub airport.
  In considering exemption applications, the Secretary would 
give priority consideration to those applications from air 
carriers that have already had slots withdrawn from them in 
order to provide slots to foreign air carriers for foreign air 
transportation. The priority consideration extends only to the 
equivalent number of slots that a carrier had withdrawn at that 
airport. The Secretary would also give priority consideration 
to applications from air carriers that, as of July 1, 1998, 
hold fewer than 20 slots at that particular airport.
  The Secretary would be precluded from withdrawing slots from 
U.S. carriers in order to provide slots to foreign air carriers 
for foreign air transportation, unless he or she makes a 
finding that such withdrawal would not adversely affect air 
service to nonhub airports, and unless U.S. carriers seeking 
slots are treated reciprocally by foreign governments.

SECTION 607. SECRETARY SHALL GRANT EXEMPTIONS TO PERIMETER RULE

  Section 607 would require the Secretary to grant limited 
exemptions to the 1,250-mile perimeter rule at the Ronald 
Reagan Washington National Airport. This section also would 
provide for 12 new daily air carrier slots at the airport, 
dedicated for long-haul service beyond the perimeter.
  This section creates a limited number of new slots that will 
be dedicated to long-haul operations from Reagan National. The 
new slots are intended to maximize domestic network options to 
Reagan National by allowing carriers to serve domestic hubs 
outside of the current perimeter of 1,250 miles. The Committee 
intends to implement a process that will provide numerous 
domestic cities, including small and medium-sized communities, 
with improved service.
  The Secretary will make 12 new daily slots available to air 
carriers to operate aircraft between Reagan National and other 
hub airports currently beyond the perimeter, if the Secretary 
finds that the new service will improve competition in the 
airline industry, provide air transportation service with 
domestic network benefits, and result in improved access to 
Reagan National for communities beyond the perimeter.
  In the event that applications are filed for more than 12 
slots, the Secretary will award new services to achieve 
expanded opportunities to Reagan National, consistent with 
improving competition in the airline industry and increasing 
consumer choice.
  In addition to the slots for long-haul service, 12 new daily 
commuter slots would be created at Reagan National, for service 
to nonhub, small and medium airports within the perimeter. The 
Committee intends that the hub classifications under this 
section be determined on an airport-by-airport basis, as the 
statutes clearly call for. Carriers could only use stage 3 
aircraft in any of the new slots at Reagan National. The 24 new 
daily slots at Reagan National would be divided fairly evenly 
among the hours of 7:00 a.m. and 9:59 p.m. For nine of those 
hours during the day, no more than two additional slots would 
be inserted per hour. For the remaining six hours, no more than 
one additional slot would be inserted per hour.
  During the first 90 days after this bill is enacted, the 
Secretary of Transportation would be required to assess the 
impact of granting new slots on the environment and safety. 
Assuming safety is not adversely impacted, the Secretary would 
be free to award the slots.
  Within one year of enactment, and biannually thereafter, the 
Secretary would certify that noise, congestion (both in the air 
and on the ground), safety standards, and adequate air service 
to communities within the perimeter, remain at appropriate 
levels.

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

  Section 608 would authorize the Secretary of Transportation 
to grant 100 additional slots at the Chicago O'Hare 
International Airport, to be added to the airport's capacity 
over three years. The Secretary would be required to determine 
that the additional capacity is available and can be used 
safely, and to conduct an environmental review. All slots could 
be served only with stage 3 aircraft. This section is not 
intended to be construed in any way so as to affect the number 
of slots at O'Hare currently available to general aviation 
aircraft.

SECTION 609. CONSUMER NOTIFICATION OF E-TICKET EXPIRATION DATES

  Section 609 would provide that it shall be an unfair or 
deceptive practice for any air carrier utilizing electronically 
transmitted tickets to fail to notify the purchaser of such a 
ticket of its expiration date, if any. With the growing 
popularity and convenience of electronic ticketing, the 
Committee seeks to ensure that consumers are alerted in an 
appropriate fashion to the expiration date associated with 
electronically transmitted tickets. Industry sources indicate 
that the most common practice among air carriers that offer 
electronic ticketing is to send a written confirmation of the 
transaction to the purchaser shortly after the transaction is 
completed--whether by telephone, or through an on-line 
connection. The written confirmation of the transaction 
typically includes notification of the expiration date. This 
existing practice is sufficient to satisfy the requirement of 
Section 609. If no written confirmation of the transaction is 
provided to the purchaser, however, the air carrier must ensure 
that clear notification of the expiration date is provided--
whether orally, in the case of telephone transactions, or 
through prominent notification conveyed to purchasers making 
on-line purchases.

SECTION 610. JOINT VENTURE AGREEMENTS

  Section 610 would require the DOT to review proposed joint 
venture agreements between major airlines. Before such joint 
ventures could take effect, the DOT would have 30 days to 
review information submitted by the carriers. The review 
process could be extended by as much as 150 days in the case of 
a code-sharing arrangement, or 60 days in the case of other 
types of joint venture agreements. The DOT and Department of 
Justice would be required to enter into a memorandum of 
understanding to avoid unnecessary duplication of effort under 
this section and under antitrust laws.

SECTION 611. REGIONAL AIR SERVICE INCENTIVE OPTIONS

  Section 611 would require the DOT to study the efficacy of a 
program of federal loan guarantees for the purchase of regional 
jets by commuter air carriers. The study would include a review 
of options for funding, including alternatives to federal 
funding. The DOT must report to the authorizing committees on 
the results of the study within 24 months of enactment of the 
bill.

SECTION 612. GAO STUDY ON RURAL AIR TRANSPORTATION NEEDS

  Section 520 would require the GAO, in conjunction with the 
FAA, to conduct a study to determine the effectiveness of the 
national airport network to meet rural air transportation 
needs. This study should include a way of measuring the 
effectiveness of the airport system with respect to placing 
every citizen of the U.S. within a one hour drive of an airport 
with a runway of at least 5,000 feet in length.

                 TITLE VII--NATIONAL PARKS OVERFLIGHTS

  This title is a reflection of the recommendations made by the 
National Parks Overflights Working Group, a joint federal 
advisory committee convened from a group of private individuals 
with broad knowledge and experience in air tour operations, 
commercial air transportation, general aviation, and in the 
policies, resources and management of the national parks.
  This title represents a process-oriented piece of 
legislation, which, if properly implemented, will provide a 
workable process whereby the affected agencies and the public 
can decide whether commercial air tour activity is appropriate 
over a particular national park unit and, if so, under what 
conditions commercial air tours may or may not take place.
  The Committee intends that the FAA and the NPS work 
cooperatively to develop an effective regulatory framework 
based on principles that apply National Park System-wide, and 
practices that can be applied as needed to individual park 
units from small cultural sites in urban areas to large natural 
areas. The Committee intends that the agencies seize the 
opportunity to work cooperatively to protect the resources and 
values of the national parks and the interests of all who will 
visit and enjoy these national treasures today and in future 
generations, in a framework that represents and serves all 
interests appropriately.
  With this legislation, the Committee intends that the 
agencies work together to preserve quiet in the national parks. 
The Committee agrees with the National Parks Overflights 
Working Group and recognizes that the natural sounds are an 
inherent component of ``the scenery and the natural and 
historic objects and the wild life'' within national parks that 
the NPS was charged to protect in its organic legislation. As 
such, in a park where ``natural quiet'' is a concern to park 
managers and is recognized by those managers and the public, 
every ground visitor should have the opportunity to enjoy quiet 
and the sounds of nature ``unimpaired'' in at least a portion 
of the park, or at least a portion of the time. This principle 
recognizes that natural quiet is not an important attribute for 
all national parks, such as historic sites in urban settings. 
It also recognizes that for national parks where natural quiet 
is an expressed concern, visitors are entitled to experience 
it.
  For some parks, the Committee recognizes that preservation of 
natural quiet, and the assurance that visitors can enjoy the 
sounds of nature, may require banning commercial air tour 
operations over the park altogether. For other parks, this goal 
may be achieved by restricting commercial air tours in some 
areas, or during some periods of time, while allowing air tours 
in other areas where a similar concern is absent.
  The Committee intends that the development of ATMPs pursuant 
to this legislation be a fully cooperative process between the 
FAA and the NPS, which preserves the essential responsibilities 
of each agency. The Committee further intends that the FAA 
retains its role as the sole manager of America's airspace, and 
its responsibility to ensure safety in the skies, and that the 
NPS retains its responsibility and authority to protect park 
resources and values, and visitor experiences. Operators who 
wish to conduct commercial air tours over a national park unit 
must apply to the FAA for operations specifications. The NPS 
determines potential impacts to the park and visitor 
opportunities. The FAA and the NPS jointly conduct the ATMP 
process, and each agency must sign the required environmental 
and decision documents.
  The final decision to prohibit, authorize or authorize with 
conditions any air tour over a park is translated into 
regulatory specifications issued by the FAA. The Committee 
specifically intends that these specifications reflect the 
decisions and reflect the conditions recommended in the ATMP.
  The Committee intends that this legislation applies solely to 
commercial air tour operations as defined in the text of the 
legislation. While other forms of aviation can and do affect 
natural quiet in the national parks, commercial air tours are 
the focus of concern for a variety of reasons. Such operations 
by their nature fly passengers for hire purposefully over the 
park units, at relatively low altitudes, at frequent intervals, 
and often to the very locations and attractions favored by 
ground-based visitors. Commercial air tour operators solicit 
business based on this type of service.
  The Committee has used these characteristics to define air 
tour operations, and has provided lateral boundaries for the 
legislation identical to those defined by the National Parks 
Overflights Working Group, while leaving the minimum effective 
altitude to the judgment of the FAA and the NPS. Nevertheless, 
the Committee recognizes that the Working Group achieved near 
unanimity in its recommendation that the minimum altitude be 
set at 5,000 feet above ground level (AGL). The Committee 
further recognizes that any altitude below 5,000 feet AGL would 
differentially affect the ability of rotor and fixed-wing air 
tour operators to provide commercially attractive tours, and 
would therefore be discriminatory.

SECTION 701. FINDINGS

  Section 701 sets forth six findings establishing the general 
basis for enactment of the provisions contained in Title VII of 
the bill.

SECTION 702. AIR TOUR MANAGEMENT PLANS FOR NATIONAL PARKS

  Section 702 would require that commercial air tour operators, 
in order to conduct air tour operations over a national park or 
tribal lands, conduct their tours in accordance with any ATMP 
that is in effect for that park or those tribal lands. The 
commercial air tour operator would have to apply for authority 
to conduct operations over a park, and the Administrator of the 
FAA would prescribe operating conditions and limitations 
(operations specifications) for each commercial air tour 
operator, in accordance with the appropriate ATMP.
  For purposes of this section, the term ``national park'' 
means any unit of the National Park System. The term ``tribal 
lands'' means Indian Country that is within or abutting a 
national park (up to one-half mile beyond the boundary of the 
park). The term ``effective'' means any air tour management 
plan that has been agreed to by the FAA and the NPS, and has 
been approved and issued by the FAA.
  If an ATMP limits the number of commercial air tours over a 
national park area during a specified time frame, the FAA 
Administrator and the Director of the NPS would authorize 
commercial air tour operators to provide the service, in 
accordance with an open and competitive process developed by 
the FAA Administrator and the NPS Director. This section sets 
out the factors for consideration in approving proposals for 
commercial air tours in situations where the capacity is 
limited. In considering the experience of the applicant in 
commercial air tour operations over other national parks or 
scenic areas, the Committee intends for the FAA and the NPS to 
consider the experience of the operator with regard to comments 
or complaints, and the operator's experience in dealing with 
ground-based concerns.
  This section also would require that commercial air tour 
operators over national parks and tribal lands meet the FAA 
safety criteria codified in 14 C.F.R. Part 135 or Part 121. 
Certain commercial air tour operators, however, could conduct 
business under the less stringent standards of 14 C.F.R. Part 
91. The operator would be required to secure a letter of 
agreement from the FAA Administrator and the park 
superintendent for that national park, describing the 
conditions for flight operations. The total number of 
operations under this Part 91 exception would be limited to no 
more than five flights in any 30-day period over a particular 
park.
  Upon enactment of the bill, existing commercial air tour 
operators would have 90 days to apply to the FAA for operating 
authority under 14 C.F.R. Part 135 or Part 121. Any new entrant 
commercial air tour operator would be required to apply for the 
authority before it can begin commercial air tour operations 
over a national park or tribal lands. The FAA would have to act 
on these applications within 24 months.
  This section would also direct the FAA Administrator, in 
cooperation with the Director of the NPS, to establish an ATMP 
for any national park or tribal land whenever a commercial air 
tour operator applies for the authority to conduct tours over 
the park or tribal land, if an ATMP is not already in place. 
This requirement applies automatically if commercial air tours 
already exist over the national park or tribal land.
  This section also specifies that the development of an ATMP 
would be a cooperative undertaking between the FAA and the NPS. 
An ATMP would be developed through a public process, and the 
final record of decision is subject to judicial review. This 
subsection would establish the objective of an ATMP, which is 
to develop acceptable and effective measures to mitigate the 
significant adverse impacts, if any, of commercial air tours 
upon the natural and cultural resources and visitor experiences 
at national parks and tribal lands. Significant adverse impacts 
include impacts that compromise or otherwise negatively affect 
the abilities of ground visitors to experience the sounds of 
the national park unit in its intended context.
  In developing an ATMP, the FAA and the NPS would conduct the 
environmental analysis provided for by the National 
Environmental Policy Act of 1969 (NEPA). Both the FAA 
Administrator and the NPS Director would have to sign the 
environmental decision document for each park before proceeding 
with development of the ATMP. If either agency fails to sign or 
refuses to sign, the ATMP will be considered premature and not 
in force. This section lists the possible contents of an ATMP, 
and requires justification and documentation for any measures 
adopted in the ATMP.
  This section also would set out the procedure for developing 
an ATMP. The procedure would require at least one public 
meeting, publication in the Federal Register for notice and 
comment, and the solicitation of Indian tribe participation 
when the tribe's lands are, or may be, overflown by aircraft 
involved in commercial air tour operations over a national 
park. This procedure would be governed by Council on 
Environmental Quality (CEQ) regulations. For purposes of the 
CEQ regulations, the FAA would be the lead agency and the NPS 
would be a cooperating agency. Affected Indian tribes may 
participate in the ATMP development as a cooperating agency.
  Amendments to ATMPs would be published in the Federal 
Register for notice and comment.
  Existing commercial air tour operators at national parks 
would apply to the FAA Administrator, and the FAA Administrator 
would grant these operators interim operating authority until 
the ATMP for that national park is complete. The FAA 
Administrator would authorize the operator to conduct the same 
number of tour flights that the operator conducted over the 
past year (or the annual average of the past three years, 
whichever is higher). In order to increase operations, the 
commercial air tour operator would have to obtain the approval 
of the FAA Administrator and the NPS Director.
  The interim operating authority would be published in the 
Federal Register to provide notice and opportunity for comment. 
It could be revoked by the FAA Administrator for cause, 
including the failure to comply with any of the terms of the 
interim authority, such as the failure to promote the 
protection of national park resources and park experiences as 
they relate to visitors on the ground. In any event, it would 
terminate 180 days after an ATMP is developed for the national 
park. Modifications to the interim operating authority are 
allowed if the modification improves the protection of national 
park resources and the protection of tribal lands, in the 
estimate of the land managers.
  New entrants would not be allowed to conduct commercial air 
tour operations over a national park until the ATMP for that 
park is developed. If the agencies have not developed an ATMP 
for a park within 24 months of enactment, however, the 
Secretary of Transportation would have the authority to grant 
new entrants interim operating authority if the competitive 
circumstances warrant.
  This section also contains definitions for terms used in this 
title. The provisions of this section would not apply to the 
Grand Canyon National Park, due to existing statutes addressing 
air tours over the Grand Canyon.
  This section would prohibit the application of the new 
section 40125 of title 49, United States Code, anywhere in 
Alaska. The Committee also intends that the section exempt 
Alaska from the Advisory Group study on the impact of the 
legislation and from the overflight fee report.
  In 1987, Congress mandated a study by the Secretary of the 
Interior, acting through the Director of the NPS, to determine 
the impacts that overflights of aircraft have on park unit 
resources. Section 1(c) of the legislation required research at 
six named parks and four unnamed parks to be identified at the 
discretion of the NPS. Section 1(c) expressly excluded all NPS 
units in Alaska from the research and the study.
  The Committee recognizes the important role of aircraft in 
everyday life in Alaska and wishes to continue to ensure 
Alaskans are not prejudiced. The congressional preservation in 
Alaska of an express and affirmative right to air access to 
federal lands in section 1110 of the Alaska National Interest 
Lands Conservation Act (16 U.S.C. 3170) is not affected by this 
title, and there has been no identified need since this 
historic statute was enacted to change course with respect to 
this policy. The Committee notes that the July 31, 1997, 
testimony of Mr. Destry Jarvis of the NPS before the Committee 
confirmed that the 1995 report submitted pursuant to the 1987 
act did not address national parks in Alaska.

SECTION 703. ADVISORY GROUP

  Section 703 would require that, within one year of enactment, 
the FAA Administrator and the NPS Director establish an 
advisory group to provide continuing advice and counsel with 
respect to the operation of commercial air tours over and near 
national parks. The membership would consist of a balanced 
group of representatives of general aviation, commercial air 
tour operators, environmental concerns, Indian tribes, the FAA, 
and the NPS. The FAA and the NPS representatives would serve 
alternating one-year terms as chairman of the advisory group.
  Among its duties, the advisory group would provide 
recommendations on the designation of commonly accepted quiet 
aircraft technologies, which are to be given preferential 
treatment in the ATMPs. The FAA and the NPS are required to 
report back in two years on the success of this section in 
providing incentives for the adoption of quiet aircraft 
technology.

SECTION 704. OVERFLIGHT FEE REPORT

  Section 704 would require the FAA Administrator, within 180 
days of enactment, to report to Congress on the effects of 
overflight fees on the commercial air tour industry. The report 
would include the viability of a tax credit for operators equal 
to the amount of the fee charged by the NPS, as well as the 
financial effects that these proposed offsets are likely to 
have on FAA budgets and appropriations.

               TITLE VIII--AVIATION TRUST FUND AMENDMENTS

SECTION 801. AMENDMENTS TO THE AIRPORT AND AIRWAY TRUST FUND

  Section 801 would make the necessary amendments to the 
Airport and Airway Trust Fund (26 U.S.C. 9502) to authorize the 
continued use of the Airport and Airway Trust Fund through 
Fiscal Year 2002.

ADDITIONAL VIEWS OF CHAIRMAN MCCAIN AND SENATORS HOLLINGS, GORTON, AND 
     FORD REGARDING SLOTS AT CHICAGO'S O'HARE AIRPORT (SECTION 608)

  Section 608 of the bill encourages the Secretary of 
Transportation to issue 100 additional takeoff and landing 
slots at Chicago O'Hare, in recognition of the recent decline 
in operations at the airport. Since the time that the bill was 
ordered to be reported by the Committee, the aviation 
leadership on the Committee has reached agreement with Senators 
Moseley-Braun and Durbin on how the bill will address slots at 
Chicago.
  The agreement directs the Secretary of Transportation to 
issue 30 additional takeoff and landing slots at Chicago 
O'Hare. The Committee is aware that the prospect of new flights 
at Chicago O'Hare is controversial for the residents 
surrounding the airport who believe that they will be impacted 
by additional aircraft noise as a result of additional 
operations. Consequently, the Manager's amendment for this bill 
will provide a number of provisions to enable input from 
Chicago officials and people living near the airport who may 
have concerns over noise.
  Specifically, the Committee expects the Secretary to issue 
these slots at O'Hare in the three years following enactment of 
the legislation. Carriers are required to use stage 3 aircraft 
in the flights that are enabled by the additional slots. 
Eighteen of the slots are to be reserved for ``underserved'' 
markets, with no fewer than six of the 18 slots designated as 
commuter slots. The remaining 12 slots are air carrier slots 
for general distribution. For purposes of this section, an 
underserved market is defined as a market served by an airport 
that is smaller than a large hub airport.
  Before issuing any of the slots, the Secretary is to study 
and report on the environmental considerations that are 
associated with the flights that would utilize the additional 
slots, including determining that there is no significant 
increase in noise. There has been a recent decline in 
operations at Chicago O'Hare. In addition, there has been a 
significant decline in takeoffs and landings by relatively 
noisy military jets. Given these facts, as well as the 
progression of federal stage 3 aircraft fleet requirements, it 
is not expected that these additional slots will increase noise 
significantly at the airport. In addition, the Secretary must 
certify that sufficient capacity is available at O'Hare to 
accommodate the additional slots, and that the slots can be 
used safely.
  Prior to issuing any of the additional slots, the Secretary 
is to provide 30-days public notice in the Federal Register. 
The Secretary is to consult with local officials on the noise 
and environmental issues surrounding issuance of the slots.
  At the end of three years, the Secretary will again study and 
report on how safety, the environment, noise, access to 
underserved markets (throughout the country), and competition 
at Chicago O'Hare have been impacted by the additional slots. 
It is expected that the Committee will review the conclusions 
of the report in deciding whether to seek additional slots at 
O'Hare.
  Meanwhile, the Manager's amendment will direct the Secretary 
to study and report on the community noise levels in the areas 
surrounding the four high density airports (O'Hare, Reagan 
National, LaGuardia and JFK) once the national 100-percent 
Stage 3 requirement comes into effect in 2000. Among other 
things, the report is to compare community noise levels since 
enactment of the Stage 3 aircraft fleet requirements in the 
1990 Airport Noise and Capacity Act. The report will also offer 
suggestions on improving the noise impact of these airports.

                      ROLLCALL VOTES IN COMMITTEE

                      ROLLCALL VOTES IN COMMITTEE

  In accordance with paragraph 7(c) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following description of the record votes during its 
consideration of S. 2279:
    Senator Gorton offered an amendment to provide a $1 
increase in passenger facility charges subject to limitations. 
By rollcall vote of 8 yeas and 11 nays as follows, the 
amendment was defeated:
        YEAS--8--                     NAYS--11
Mr. Burns -                         Mr. McCain
Mr. Gorton--                        Mr. Stevens
Mr. Inouye \1\-                     Mr. Lott \1\
Mr. Ford--                          Mr. Snowe
Mr. Rockefeller-                    Mr. Ashcroft \1\
Mr. Kerry --                        Mr. Frist
Mr. Dorgan--                        Mr. Abraham \1\
Mr. Wyden \1\-                      Mr. Brownback \1\---
                                    Mr. Hollings \1\---
                                    Mr. Breaux---
                                    Mr. Bryan---

    \1\By proxy

    Senator Dorgan (for himself and Ms. Snowe) offered an 
amendment to provide enhanced air service to underserved 
communities. By rollcall vote of 9 yeas and 11 nays as follows, 
the amendment was defeated:
        YEAS--9--                     NAYS--11
Ms. Snowe -                         Mr. McCain
Mr. Brownback-                      Mr. Stevens
Mr. Ford--                          Mr. Burns
Mr. Rockefeller-                    Mr. Gorton
Mr. Kerry\1\-                       Mr. Lott \1\
Mr. Breaux--                        Mrs. Hutchison
Mr. Bryan--                         Mr. Ashcroft
Mr. Dorgan--                        Mr. Frist
Mr. Wyden--                         Mr. Abraham \1\---
                                    Mr. Hollings \1\---
                                    Mr. Inouye---

    \1\By proxy

                        CHANGES IN EXISTING LAW

  In compliance with paragraph 12 of Rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                        TITLE 49. TRANSPORTATION

                SUBTITLE I. DEPARTMENT OF TRANSPORTATION

                        CHAPTER 1. ORGANIZATION

Sec.  102. Department of Transportation

  (a) The Department of Transportation is an executive 
department of the United States Government at the seat of 
Government.
  (b) The head of the Department is the Secretary of 
Transportation. The Secretary is appointed by the President, by 
and with the advice and consent of the Senate.
  (c) The Department has a Deputy Secretary of Transportation 
appointed by the President, by and with the advice and consent 
of the Senate. The Deputy Secretary--
          (1) shall carry out duties and powers prescribed by 
        the Secretary; and
          (2) acts for the Secretary when the Secretary is 
        absent or unable to serve or when the office of 
        Secretary is vacant.
  (d) The Department has an Associate Deputy Secretary 
appointed by the President, by and with the advice and consent 
of the Senate. The Associate Deputy Secretary shall carry out 
powers and duties prescribed by the Secretary.
  (e) The Department has 4 Assistant Secretaries and a General 
Counsel appointed by the President, by and with the advice and 
consent of the Senate. The Department also has an Assistant 
Secretary of Transportation for Administration appointed in the 
competitive service by the Secretary, with the approval of the 
President. They shall carry out duties and powers prescribed by 
the Secretary. An Assistant Secretary or the General Counsel, 
in the order prescribed by the Secretary, acts for the 
Secretary when the Secretary and the Deputy Secretary are 
absent or unable to serve, or when the offices of the Secretary 
and Deputy Secretary are vacant.
  (f) The Department shall have a seal that shall be judicially 
recognized.
  (g) Small Community Air Service Development Program.--
          (1) Establishment.--The Secretary shall establish a 
        4-year pilot aviation development program to be 
        administered by a program director designated by the 
        Secretary.
          (2) Functions.--The program director shall--
                  (A) function as a facilitator between small 
                communities and air carriers;
                  (B) carry out section 41743 of this title;
                  (C) carry out the airline service restoration 
                program under sections 41744, 41745, and 41746 
                of this title;
                  (D) ensure that the Bureau of Transportation 
                Statistics collects data on passenger 
                information to assess the service needs of 
                small communities;
                  (E) work with and coordinate efforts with 
                other Federal, State, and local agencies to 
                increase the viability of service to small 
                communities and the creation of aviation 
                development zones; and
                  (F) provide policy recommendations to the 
                Secretary and the Congress that will ensure 
                that small communities have access to quality, 
                affordable air transportation services.
          (3) Reports.--The program director shall provide an 
        annual report to the Secretary and the Congress 
        beginning in 1999 that--
                  (A) analyzes the availability of air 
                transportation services in small communities, 
                including, but not limited to, an assessment of 
                the air fares charged for air transportation 
                services in small communities compared to air 
                fares charged for air transportation services 
                in larger metropolitan areas and an assessment 
                of the levels of service, measured by types of 
                aircraft used, the availability of seats, and 
                scheduling of flights, provided to small 
                communities;
                  (B) identifies the policy, economic, 
                geographic and marketplace factors that inhibit 
                the availability of quality, affordable air 
                transportation services to small communities; 
                and
                  (C) provides policy recommendations to 
                address the policy, economic, geographic, and 
                marketplace factors inhibiting the availability 
                of quality, affordable air transportation 
                services to small communities.

Sec.  106. Federal Aviation Administration

  (a) The Federal Aviation Administration is an administration 
in the Department of Transportation.
  (b) The head of the Administration is the Administrator. The 
Administration has a Deputy Administrator. They are appointed 
by the President, by and with the advice and consent of the 
Senate. When making an appointment, the President shall 
consider the fitness of the individual to carry out efficiently 
the duties and powers of the office. Except as provided in 
subsection (f) or in other provisions of law, the Administrator 
reports directly to the Secretary of Transportation. The term 
of office for any individual appointed as Administrator after 
August 23, 1994, shall be 5 years.
  (c) The Administrator must--
          (1) be a citizen of the United States;
          (2) be a civilian; and
          (3) have experience in a field directly related to 
        aviation.
  (d)(1) The Deputy Administrator must be a citizen of the 
United States and have experience in a field directly related 
to aviation. An officer on active duty in an armed force may be 
appointed as Deputy Administrator. However, if the 
Administrator is a former regular officer of an armed force, 
the Deputy Administrator may not be an officer on active duty 
in an armed force, a retired regular officer of an armed force, 
or a former regular officer of an armed force.
  (2) An officer on active duty or a retired officer serving as 
Deputy Administrator is entitled to hold a rank and grade not 
lower than that held when appointed as Deputy Administrator. 
The Deputy Administrator may elect to receive (A) the pay 
provided by law for the Deputy Administrator, or (B) the pay 
and allowances or the retired pay of the military grade held. 
If the Deputy Administrator elects to receive the military pay 
and allowances or retired pay, the Administration shall 
reimburse the appropriate military department from funds 
available for the expenses of the Administration.
  (3) The appointment and service of a member of the armed 
forces as a Deputy Administrator does not affect the status, 
office, rank, or grade held by that member, or a right or 
benefit arising from the status, office, rank, or grade. The 
Secretary of a military department does not control the member 
when the member is carrying out duties and powers of the Deputy 
Administrator.
  (e) The Administrator and the Deputy Administrator may not 
have a pecuniary interest in, or own stock in or bonds of, an 
aeronautical enterprise, or engage in another business, 
vocation, or employment.
  (f) Authority of the Secretary and the Administrator.--
          (1) Authority of the Secretary.--Except as provided 
        in paragraph (2), the Secretary of Transportation shall 
        carry out the duties and powers, and controls the 
        personnel and activities, of the Administration. 
        Neither the Secretary nor the Administrator may submit 
        decisions for the approval of, or be bound by the 
        decisions or recommendations of, a committee, board, or 
        organization established by executive order.
          (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.
          (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).
          (4) 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.
  (g) Duties and Powers of Administrator.--
          (1) Except as provided in paragraph (2) of this 
        subsection, the Administrator shall carry out--
                  (A) duties and powers of the Secretary of 
                Transportation under subsection (f) of this 
                section related to aviation safety (except 
                those related to transportation, packaging, 
                marking, or description of hazardous material) 
                and stated in sections 308(b), 1132(c) and (d), 
                40101(c), 40103(b), 40106(a), 40108, 40109(b), 
                [40113(a), (c), and (d), 40114(a), 40119, 
                44501(a) and (c), 44502(a)(1), (b), and (c), 
                44504, 44505, 44507, 44508, 44511-44513, 44701-
                44716, 44718(c), 44721(a), 44901, 44902, 
                44903(a)-(c) and (e), 44906, 44912, 44935-
                44937, and 44938(a) and (b), chapter 451, 
                sections 45302-45304,] 40113(a), (c)-(e), 
                40114(a), and 40119, and chapter 445 (except 
                sections 44501(b), 44502(a)(2)-(4), 44503, 
                44506, 44509, 44510, 44514, and 44515), chapter 
                447 (except sections 44717, 44718(a) and (b), 
                44719, 44720, 44721(b), 44722, and 44723), 
                chapter 449 (except sections 44903(d), 44904, 
                44905, 44907-44911, 44913, 44915, and 44931-
                44934), chapter 451, chapter 453, sections 
                46104, 46301(d) and (h)(2), 46303(c), 46304-
                46308, 46310, 46311, and 46313-46316, chapter 
                465, and sections 47504(b) (related to flight 
                procedures), 47508(a), and 48107 of this title; 
                and
                  (B) additional duties and powers prescribed 
                by the Secretary of Transportation.
          (2) In carrying out sections 40119, 44901, 44903(a)-
        (c) and (e), 44906, 44912, 44935-44937, 44938(a) and 
        (b), and 48107 of this title, paragraph (1)(A) of this 
        subsection does not apply to duties and powers vested 
        in the Director of Intelligence and Security by section 
        44931 of this title.
  (h) Section 40101(d) of this title applies to duties and 
powers specified in subsection (g)(1) of this section. Any of 
those duties and powers may be transferred to another part of 
the Department only when specifically provided by law or a 
reorganization plan submitted under chapter 9 of title 5. A 
decision of the Administrator in carrying out those duties or 
powers is administratively final.
  (i) The Deputy Administrator shall carry out duties and 
powers prescribed by the Administrator. The Deputy 
Administrator acts for the Administrator when the Administrator 
is absent or unable to serve, or when the office of the 
Administrator is vacant.
  (j) There is established within the Federal Aviation 
Administration an institute to conduct civil aeromedical 
research under section 44507 of this title. Such institute 
shall be known as the ``Civil Aeromedical Institute''. Research 
conducted by the institute should take appropriate advantage of 
capabilities of other government agencies, universities, or the 
private sector.
  [(k) Authorization of Appropriations for Operations.--There 
is authorized to be appropriated to the Secretary of 
Transportation for operations of the Administration 
$5,158,000,000 for fiscal year 1997 and $5,344,000,000 for 
fiscal year 1998.]
  (k) Authorization of Appropriations for Operations.--
          (1) In general.--There are authorized to be 
        appropriated to the Secretary of Transportation for 
        operations of the Administration $5,631,000,000 for 
        fiscal year 1999, $5,784,000,000 for fiscal year 2000, 
        $5,946,000,000 for fiscal year 2001, and $6,112,000,000 
        for fiscal year 2002. Of the amounts authorized to be 
        appropriated for fiscal year 1999, not more than 
        $9,100,000 shall be used to support air safety efforts 
        through payment of United States membership 
        obligations, to be paid as soon as practicable.
          (2) Authorized expenditures.--Of the amounts 
        appropriated under paragraph (1) $450,000 may be used 
        for wildlife hazard mitigation measures and management 
        of the wildlife strike database of the Federal Aviation 
        Administration.
          (3) University consortium.--There are authorized to 
        be appropriated not more than $9,100,000 for the 3 
        fiscal year period beginning with fiscal year 1999 to 
        support a university consortium established to provide 
        an air safety and security management certificate 
        program, working cooperatively with the Federal 
        Aviation Administration and United States air carriers. 
        Funds authorized under this paragraph--
                  (A) may not be used for the construction of a 
                building or other facility; and
                  (B) shall be awarded on the basis of open 
                competition.
  (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.
          (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.
  (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.
  (n) Acquisition.--
          (1) In general.--The Administrator is authorized--
                  (A) to acquire (by purchase, lease, 
                condemnation, or otherwise), construct, 
                improve, repair, operate, and maintain--
                          (i) air traffic control facilities 
                        and equipment;
                          (ii) research and testing sites and 
                        facilities; and
                          (iii) such other real and personal 
                        property (including office space and 
                        patents), or any interest therein, 
                        within and outside the continental 
                        United States as the Administrator 
                        considers necessary;
                  (B) to lease to others such real and personal 
                property; and
                  (C) to provide by contract or otherwise for 
                eating facilities and other necessary 
                facilities for the welfare of employees of the 
                Administration at the installations of the 
                Administration, and to acquire, operate, and 
                maintain equipment for these facilities.
          (2) Title.--Title to any property or interest therein 
        acquired pursuant to this subsection shall be held by 
        the Government of the United States.
  (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.
  (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.
  (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.

                           Public Law 104-50

                         (49 U.S.C. 106, note)

  Sec. 347. (a) In consultation with the employees of the 
Federal Aviation Administration and such non-governmental 
experts in personnel management systems as he may employ, and 
notwithstanding the provisions of title 5, United States Code, 
and other Federal personnel laws, the Administrator of the 
Federal Aviation Administration shall develop and implement, 
not later than January 1, 1996, a personnel management system 
for the Federal Aviation Administration that addresses the 
unique demands on the agency's workforce. Such a new system 
shall, at a minimum, provide for greater flexibility in the 
hiring, training, compensation, and location of personnel.
  (b) The provisions of title 5, United States code, shall not 
apply to the new personnel management system developed and 
implemented pursuant to subsection (a), with the exception of--
          (1) section 2302(b), relating to whistleblower 
        [protection;] protection, including the provisions for 
        investigations and enforcement as provided in chapter 
        12 of title 5, United States Code;
          (2) sections 3308--3320, relating to veterans' 
        preference;
          (3) section 7116(b)(7), relating to limitations on 
        the right to strike;
          (4) section 7204, relating to antidiscrimination;
          (5) chapter 73, relating to suitability, security, 
        and conduct;
          (6) chapter 81, relating to compensation for work 
        injury; and
          (7) chapters 83--85, 87, and 89, relating to 
        retirement, unemployment compensation, and insurance 
        coverage.
  (c) This section shall take effect on April 1, 1996.

                        TITLE 49. TRANSPORTATION

                 SUBTITLE IV. INTERSTATE TRANSPORTATION

                       PART C. PIPELINE CARRIERS

     CHAPTER 159. ENFORCEMENT: INVESTIGATIONS, RIGHTS, AND REMEDIES

Sec.  15904. Rights and remedies of persons injured by pipeline 
                    carriers

  (a) Enforcement of orders.--A person injured because a 
pipeline carrier providing transportation or service subject to 
this part does not obey an order of the Board, except an order 
for the payment of money, may bring a civil action to enforce 
that order under this subsection.
  (b) Liability of carrier.--
          (1) Excessive charges.--A pipeline carrier providing 
        transportation subject to this part is liable to a 
        person for amounts charged that exceed the applicable 
        rate for the transportation.
          (2) Damages.--A pipeline carrier providing 
        transportation subject to this part is liable for 
        damages sustained by a person as a result of an act or 
        omission of that carrier in violation of this part.
  (c) Complaints.--
          (1) Filing.--A person may file a complaint with the 
        Board under section 15901(b) or bring a civil action 
        under subsection (b) to enforce liability against a 
        pipeline carrier providing transportation subject to 
        this part.
          (2) Payment deadline.--When the Board makes an award 
        under subsection (b), the Board shall order the carrier 
        to pay the amount awarded by a specific date. The Board 
        may order a carrier providing transportation subject to 
        this part to pay damages only when the proceeding is on 
        complaint. The person for whose benefit an order of the 
        Board requiring the payment of money is made may bring 
        a civil action to enforce that order under this 
        paragraph if the carrier does not pay the amount 
        awarded by the date payment was ordered to be made.
  (d) Civil actions.--
          (1) Complaint.--When a person begins a civil action 
        under subsection (b) to enforce an order of the Board 
        requiring the payment of damages by a pipeline carrier 
        providing transportation subject to this part , the 
        text of the order of the Board must be included in the 
        complaint. In addition to the district courts of the 
        United States, a State court of general jurisdiction 
        having jurisdiction of the parties has jurisdiction to 
        enforce an order under this paragraph. The findings and 
        order of the Board are competent evidence of the facts 
        stated in them. Trial in a civil action brought in a 
        district court of the United States under this 
        paragraph is in the judicial district in which the 
        plaintiff resides or in which the principal operating 
        office of the carrier is located. In a civil action 
        under this paragraph, the plaintiff is liable for only 
        those costs that accrue on an appeal taken by the 
        plaintiff.
          (2) Attorney's fees.--The district court shall award 
        a reasonable attorney's fee as a part of the damages 
        for which a carrier is found liable under this 
        subsection. The district court shall tax and collect 
        that fee as a part of the costs of the action.

                    CHAPTER 401. GENERAL PROVISIONS

Sec.   40102. Definitions

  (a) General Definitions.--In this part--
          (1) ``aeronautics'' means the science and art of 
        flight.
          (2) ``air carrier'' means a citizen of the United 
        States undertaking by any means, directly or 
        indirectly, to provide air transportation.
          (3) ``air commerce'' means foreign air commerce, 
        interstate air commerce, the transportation of mail by 
        aircraft, the operation of aircraft within the limits 
        of a Federal airway, or the operation of aircraft that 
        directly affects, or may endanger safety in, foreign or 
        interstate air commerce.
          (4) ``air navigation facility'' means a facility 
        used, available for use, or designed for use, in aid of 
        air navigation, including--
                  (A) a landing area;
                  (B) a light;
                  (C) apparatus or equipment for distributing 
                weather information, signaling, radio-
                directional finding, or radio or other 
                electromagnetic communication; and
                  (D) another structure or mechanism for 
                guiding or controlling flight in the air or the 
                landing and takeoff of aircraft.
          (5) ``air transportation'' means foreign air 
        transportation, interstate air transportation, or the 
        transportation of mail by aircraft.
          (6) ``aircraft'' means any contrivance invented, 
        used, or designed to navigate, or fly in, the air.
          (7) ``aircraft engine'' means an engine used, or 
        intended to be used, to propel an aircraft, including a 
        part, appurtenance, and accessory of the engine, except 
        a propeller.
          (8) ``airman'' means an individual--
                  (A) in command, or as pilot, mechanic, or 
                member of the crew, who navigates aircraft when 
                under way;
                  (B) except to the extent the Administrator of 
                the Federal Aviation Administration may provide 
                otherwise for individuals employed outside the 
                United States, who is directly in charge of 
                inspecting, maintaining, overhauling, or 
                repairing aircraft, aircraft engines, 
                propellers, or appliances; or
                  (C) who serves as an aircraft dispatcher or 
                air traffic control-tower operator.
          (9) ``airport'' means a landing area used regularly 
        by aircraft for receiving or discharging passengers or 
        cargo.
          (10) ``all-cargo air transportation'' means the 
        transportation by aircraft in interstate air 
        transportation of only property or only mail, or both.
          (11) ``appliance'' means an instrument, equipment, 
        apparatus, a part, an appurtenance, or an accessory 
        used, capable of being used, or intended to be used, in 
        operating or controlling aircraft in flight, including 
        a parachute, communication equipment, and another 
        mechanism installed in or attached to aircraft during 
        flight, and not a part of an aircraft, aircraft engine, 
        or propeller.
          (12) ``cargo'' means property, mail, or both.
          (13) ``charter air carrier'' means an air carrier 
        holding a certificate of public convenience and 
        necessity that authorizes it to provide charter air 
        transportation.
          (14) ``charter air transportation'' means charter 
        trips in air transportation authorized under this part.
          (15) ``citizen of the United States'' means--
                  (A) an individual who is a citizen of the 
                United States;
                  (B) a partnership each of whose partners is 
                an individual who is a citizen of the United 
                States; or
                  (C) a corporation or association organized 
                under the laws of the United States or a State, 
                the District of Columbia, or a territory or 
                possession of the United States, of which the 
                president and at least two-thirds of the board 
                of directors and other managing officers are 
                citizens of the United States, and in which at 
                least 75 percent of the voting interest is 
                owned or controlled by persons that are 
                citizens of the United States.
          (16) ``civil aircraft'' means an aircraft except a 
        public aircraft.
          (17) ``civil aircraft of the United States'' means an 
        aircraft registered under chapter 441 of this title.
          (18) ``conditional sales contract'' means a 
        contract--
                  (A) for the sale of an aircraft, aircraft 
                engine, propeller, appliance, or spare part, 
                under which the buyer takes possession of the 
                property but title to the property vests in the 
                buyer at a later time on--
                          (i) paying any part of the purchase 
                        price;
                          (ii) performing another condition; or
                          (iii) the happening of a contingency; 
                        or
                  (B) to bail or lease an aircraft, aircraft 
                engine, propeller, appliance, or spare part, 
                under which the bailee or lessee--
                          (i) agrees to pay an amount 
                        substantially equal to the value of the 
                        property; and
                          (ii) is to become, or has the option 
                        of becoming, the owner of the property 
                        on complying with the contract.
          (19) ``conveyance'' means an instrument, including a 
        conditional sales contract, affecting title to, or an 
        interest in, property.
          (20) ``Federal airway'' means a part of the navigable 
        airspace that the Administrator designates as a Federal 
        airway.
          (21) ``foreign air carrier'' means a person, not a 
        citizen of the United States, undertaking by any means, 
        directly or indirectly, to provide foreign air 
        transportation.
          (22) ``foreign air commerce'' means the 
        transportation of passengers or property by aircraft 
        for compensation, the transportation of mail by 
        aircraft, or the operation of aircraft in furthering a 
        business or vocation, between a place in the United 
        States and a place outside the United States when any 
        part of the transportation or operation is by aircraft.
          (23) ``foreign air transportation'' means the 
        transportation of passengers or property by aircraft as 
        a common carrier for compensation, or the 
        transportation of mail by aircraft, between a place in 
        the United States and a place outside the United States 
        when any part of the transportation is by aircraft.
          (24) ``interstate air commerce'' means the 
        transportation of passengers or property by aircraft 
        for compensation, the transportation of mail by 
        aircraft, or the operation of aircraft in furthering a 
        business or vocation--
                  (A) between a place in--
                          (i) a State, territory, or possession 
                        of the United States and a place in the 
                        District of Columbia or another State, 
                        territory, or possession of the United 
                        States;
                          (ii) a State and another place in the 
                        same State through the airspace over a 
                        place outside the State;
                          (iii) the District of Columbia and 
                        another place in the District of 
                        Columbia; or
                          (iv) a territory or possession of the 
                        United States and another place in the 
                        same territory or possession; and
                  (B) when any part of the transportation or 
                operation is by aircraft.
          (25) ``interstate air transportation'' means the 
        transportation of passengers or property by aircraft as 
        a common carrier for compensation, or the 
        transportation of mail by aircraft--
                  (A) between a place in--
                          (i) a State, territory, or possession 
                        of the United States and a place in the 
                        District of Columbia or another State, 
                        territory, or possession of the United 
                        States;
                          (ii) Hawaii and another place in 
                        Hawaii through the airspace over a 
                        place outside Hawaii;
                          (iii) the District of Columbia and 
                        another place in the District of 
                        Columbia; or
                          (iv) a territory or possession of the 
                        United States and another place in the 
                        same territory or possession; and
                  (B) when any part of the transportation is by 
                aircraft.
          (26) ``intrastate air carrier'' means a citizen of 
        the United States undertaking by any means to provide 
        only intrastate air transportation.
          (27) ``intrastate air transportation'' means the 
        transportation by a common carrier of passengers or 
        property for compensation, entirely in the same State, 
        by turbojet-powered aircraft capable of carrying at 
        least 30 passengers.
          (28) ``landing area'' means a place on land or water, 
        including an airport or intermediate landing field, 
        used, or intended to be used, for the takeoff and 
        landing of aircraft, even when facilities are not 
        provided for sheltering, servicing, or repairing 
        aircraft, or for receiving or discharging passengers or 
        cargo.
          (29) ``mail'' means United States mail and foreign 
        transit mail.
          (30) ``navigable airspace'' means airspace above the 
        minimum altitudes of flight prescribed by regulations 
        under this subpart and subpart III of this part, 
        including airspace needed to ensure safety in the 
        takeoff and landing of aircraft.
          (31) ``navigate aircraft'' and ``navigation of 
        aircraft'' include piloting aircraft.
          (32) ``operate aircraft'' and ``operation of 
        aircraft'' mean using aircraft for the purposes of air 
        navigation, including--
                  (A) the navigation of aircraft; and
                  (B) causing or authorizing the operation of 
                aircraft with or without the right of legal 
                control of the aircraft.
          (33) ``person'', in addition to its meaning under 
        section 1 of title 1, includes a governmental authority 
        and a trustee, receiver, assignee, and other similar 
        representative.
          (34) ``predatory'' means a practice that violates the 
        antitrust laws as defined in the first section of the 
        Clayton Act (15 U.S.C. 12).
          (35) ``price'' means a rate, fare, or charge.
          (36) ``propeller'' includes a part, appurtenance, and 
        accessory of a propeller.
          (37) ``public aircraft"--
                  (A) means an aircraft--
                          (i) used only for the United States 
                        Government;
                          (ii) owned by the United States 
                        Government and operated by any person 
                        for purposes related to crew training, 
                        equipment development, or 
                        demonstration; or
                          (iii) owned and operated (except for 
                        commercial purposes), or exclusively 
                        leased for at least 90 continuous days, 
                        by a government (except the United 
                        States Government), including a State, 
                        the District of Columbia, or a 
                        territory or possession of the United 
                        States, or political subdivision of 
                        that government; but
                  (B) does not include a government-owned 
                aircraft--
                          (i) transporting property for 
                        commercial purposes; or
                          (ii) transporting passengers other 
                        than--
                                  (I) transporting (for other 
                                than commercial purposes) 
                                crewmembers or other persons 
                                aboard the aircraft whose 
                                presence is required to 
                                perform, or is associated with 
                                the performance of, a 
                                governmental function such as 
                                firefighting, search and 
                                rescue, law enforcement, 
                                aeronautical research, or 
                                biological or geological 
                                resource management; [or]
                                  (II) transporting (for other 
                                than commercial purposes) 
                                persons aboard the aircraft if 
                                the aircraft is operated by the 
                                Armed Forces or an intelligence 
                                agency of the United [States.] 
                                States; or
                                  (III) transporting persons 
                                aboard the aircraft if the 
                                aircraft is operated for the 
                                purpose of prisoner transport.
An aircraft described in the preceding sentence shall, 
notwithstanding any limitation relating to use of the aircraft 
for commercial purposes, be considered to be a public aircraft 
for the purposes of this part without regard to whether the 
aircraft is operated by a unit of government on behalf of 
another unit of government, pursuant to a cost reimbursement 
agreement between such units of government, if the unit of 
government on whose behalf the operation is conducted certifies 
to the Administrator of the Federal Aviation Administration 
that the operation was necessary to respond to a significant 
and imminent threat to life or property (including natural 
resources) and that no service by a private operator was 
reasonably available to meet the threat.
          (38) ``spare part'' means an accessory, appurtenance, 
        or part of an aircraft (except an aircraft engine or 
        propeller), aircraft engine (except a propeller), 
        propeller, or appliance, that is to be installed at a 
        later time in an aircraft, aircraft engine, propeller, 
        or appliance.
          (39) ``State authority'' means an authority of a 
        State designated under State law--
                  (A) to receive notice required to be given a 
                State authority under subpart II of this part; 
                or
                  (B) as the representative of the State before 
                the Secretary of Transportation in any matter 
                about which the Secretary is required to 
                consult with or consider the views of a State 
                authority under subpart II of this part.
          (40) ``ticket agent'' means a person (except an air 
        carrier, a foreign air carrier, or an employee of an 
        air carrier or foreign air carrier) that as a principal 
        or agent sells, offers for sale, negotiates for, or 
        holds itself out as selling, providing, or arranging 
        for, air transportation.
          (41) ``United States'' means the States of the United 
        States, the District of Columbia, and the territories 
        and possessions of the United States, including the 
        territorial sea and the overlying airspace.
  (b) Limited definition. In subpart II of this part, 
"control'' means control by any means.

Sec.   40117. Passenger facility fees

  (a) Definitions.--In this section--
          (1) ``airport'', ``commercial service airport'', and 
        ``public agency'' have the same meanings given those 
        terms in section 47102 of this title.
          (2) ``eligible agency'' means a public agency that 
        controls a commercial service airport.
          (3) ``eligible airport-related project'' means a 
        project--
                  (A) for airport development or airport 
                planning under subchapter I of chapter 471 of 
                this title;
                  (B) for terminal development described in 
                section 47110(d) of this title;
                  (C) for airport noise capability planning 
                under section 47505 of this title;
                  (D) to carry out noise compatibility measures 
                eligible for assistance under section 47504 of 
                this title, whether or not a program for those 
                measures has been approved under section 47504; 
                and
                  (E) for constructing gates and related areas 
                at which passengers board or exit aircraft.
          (4) ``passenger facility fee'' means a fee imposed 
        under this section.
          (5) ``passenger facility revenue'' means revenue 
        derived from a passenger facility fee.
  (b) General Authority.--
          (1) The Secretary of Transportation may authorize 
        under this section an eligible agency to impose a 
        passenger facility fee of $1, $2, or $3 on each paying 
        passenger of an air carrier or foreign air carrier 
        boarding an aircraft at an airport the agency controls 
        to finance an eligible airport-related project, 
        including making payments for debt service on 
        indebtedness incurred to carry out the project, to be 
        carried out in connection with the airport or any other 
        airport the agency controls.
          (2) A State, political subdivision of a State, or 
        authority of a State or political subdivision that is 
        not the eligible agency may not regulate or prohibit 
        the imposition or collection of a passenger facility 
        fee or the use of the passenger facility revenue.
          (3) A passenger facility fee may be imposed on a 
        passenger of an air carrier or foreign air carrier 
        originating or connecting at the commercial service 
        airport that the agency controls.
  (c) Applications.--
          (1) An eligible agency must submit to the Secretary 
        an application for authority to impose a passenger 
        facility fee. The application shall contain information 
        and be in the form that the Secretary may require by 
        regulation.
          (2) Before submitting an application, the eligible 
        agency must provide reasonable notice to, and an 
        opportunity for consultation with, air carriers and 
        foreign air carriers operating at the airport. The 
        Secretary shall prescribe regulations that define 
        reasonable notice and contain at least the following 
        requirements:
                  (A) The agency must provide written notice of 
                individual projects being considered for 
                financing by a passenger facility fee and the 
                date and location of a meeting to present the 
                projects to air carriers and foreign air 
                carriers operating at the airport.
                  (B) Not later than 30 days after written 
                notice is provided under subparagraph (A) of 
                this paragraph, each air carrier and foreign 
                air carrier operating at the airport must 
                provide to the agency written notice of receipt 
                of the notice. Failure of a carrier to provide 
                the notice may be deemed certification of 
                agreement with the project by the carrier under 
                subparagraph (D) of this paragraph.
                  (C) Not later than 45 days after written 
                notice is provided under subparagraph (A) of 
                this paragraph, the agency must conduct a 
                meeting to provide air carriers and foreign air 
                carriers with descriptions of projects and 
                justifications and a detailed financial plan 
                for projects.
                  (D) Not later than 30 days after the meeting, 
                each air carrier and foreign air carrier must 
                provide to the agency certification of 
                agreement or disagreement with projects (or 
                total plan for the projects). Failure to 
                provide the certification is deemed 
                certification of agreement with the project by 
                the carrier. A certification of disagreement is 
                void if it does not contain the reasons for the 
                disagreement.
          (3) After receiving an application, the Secretary 
        shall provide notice and an opportunity to air 
        carriers, foreign air carriers, and other interested 
        persons to comment on the application. The Secretary 
        shall make a final decision on the application not 
        later than 120 days after receiving it.
  (d) Limitations on Approving Applications.--The Secretary may 
approve an application that an eligible agency has submitted 
under subsection (c) of this section to finance a specific 
project only if the Secretary finds, based on the application, 
that--
          (1) the amount and duration of the proposed passenger 
        facility fee will result in revenue (including interest 
        and other returns on the revenue) that is not more than 
        the amount necessary to finance the specific project;
          (2) each project is an eligible airport-related 
        project that will--
                  (A) preserve or enhance capacity, safety, or 
                security of the national air transportation 
                system;
                  (B) reduce noise resulting from an airport 
                that is part of the system; or
                  (C) provide an opportunity for enhanced 
                competition between or among air carriers and 
                foreign air carriers; and
          (3) the application includes adequate justification 
        for each of the specific projects.
  (e) Limitations on Imposing Fees.--
          (1) An eligible agency may impose a passenger 
        facility fee only--
                  (A) if the Secretary approves an application 
                that the agency has submitted under subsection 
                (c) of this section; and
                  (B) subject to terms the Secretary may 
                prescribe to carry out the objectives of this 
                section.
          (2) A passenger facility fee may not be collected 
        from a passenger--
                  (A) for more than 2 boardings on a one-way 
                trip or a trip in each
  direction of a round trip;
                  (B) for the boarding to an eligible place 
                under subchapter II of chapter 417 of this 
                title for which essential air service 
                compensation is paid under subchapter II; [and]
                  (C) enplaning at an airport if the passenger 
                did not pay for the air transportation which 
                resulted in such enplanement, including any 
                case in which the passenger obtained the ticket 
                for the air transportation with a frequent 
                flier award coupon without monetary [payment.] 
                payment; and
                  (D) in Alaska aboard an aircraft having a 
                seating capacity of less than 20 passengers.
  (f) Limitations on Contracts, Leases, and Use Agreements.--
          (1) A contract between an air carrier or foreign air 
        carrier and an eligible agency made at any time may not 
        impair the authority of the agency to impose a 
        passenger facility fee or to use the passenger facility 
        revenue as provided in this section.
          (2) A project financed with a passenger facility fee 
        may not be subject to an exclusive long-term lease or 
        use agreement of an air carrier or foreign air carrier, 
        as defined by regulations of the Secretary.
          (3) A lease or use agreement of an air carrier or 
        foreign air carrier related to a project whose 
        construction or expansion was financed with a passenger 
        facility fee may not restrict the eligible agency from 
        financing, developing, or assigning new capacity at the 
        airport with passenger facility revenue.
  (g) Treatment of Revenue.--
          (1) Passenger facility revenue is not airport revenue 
        for purposes of establishing a price under a contract 
        between an eligible agency and an air carrier or 
        foreign air carrier.
          (2) An eligible agency may not include in its price 
        base the part of the capital costs of a project paid 
        for by using passenger facility revenue to establish a 
        price under a contract between the agency and an air 
        carrier or foreign air carrier.
          (3) For a project for terminal development, gates and 
        related areas, or a facility occupied or used by at 
        least one air carrier or foreign air carrier on an 
        exclusive or preferential basis, a price payable by an 
        air carrier or foreign air carrier using the facilities 
        must at least equal the price paid by an air carrier or 
        foreign air carrier using a similar facility at the 
        airport that was not financed with passenger facility 
        revenue.
          (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.
  (h) Compliance.--
          (1) As necessary to ensure compliance with this 
        section, the Secretary shall prescribe regulations 
        requiring recordkeeping and auditing of accounts 
        maintained by an air carrier or foreign air carrier and 
        its agent collecting a passenger facility fee and by 
        the eligible agency imposing the fee.
          (2) The Secretary periodically shall audit and review 
        the use by an eligible agency of passenger facility 
        revenue. After review and a public hearing, the 
        Secretary may end any part of the authority of the 
        agency to impose a passenger facility fee to the extent 
        the Secretary decides that the revenue is not being 
        used as provided in this section.
          (3) The Secretary may set off amounts necessary to 
        ensure compliance with this section against amounts 
        otherwise payable to an eligible agency under 
        subchapter I of chapter 471 of this title if the 
        Secretary decides a passenger facility fee is excessive 
        or that passenger facility revenue is not being used as 
        provided in this section.
  (i) Regulations.--The Secretary shall prescribe regulations 
necessary to carry out this section. The regulations--
          (1) may prescribe the time and form by which a 
        passenger facility fee takes effect; [and]
          (2) shall--
                  (A) require an air carrier or foreign air 
                carrier and its agent to collect a passenger 
                facility fee that an eligible agency imposes 
                under this section;
                  (B) establish procedures for handling and 
                remitting money collected;
                  (C) ensure that the money, less a uniform 
                amount the Secretary determines reflects the 
                average necessary and reasonable expenses (net 
                of interest accruing to the carrier and agent 
                after collection and before remittance) 
                incurred in collecting and handling the fee, is 
                paid promptly to the eligible agency for which 
                they are collected; and
                  (D) require that the amount collected for any 
                air transportation be noted on the ticket for 
                that air [transportation.] transportation; and
          (3) may permit a public agency to request that 
        collection of a passenger facility fee be waived for--
                  (A) passengers enplaned by any class of air 
                carrier or foreign air carrier if the number of 
                passengers enplaned by the carriers in the 
                class constitutes not more than one percent of 
                the total number of passengers enplaned 
                annually at the airport at which the fee is 
                imposed; or
                  (B) passengers enplaned on a flight to an 
                airport--
                          (i) that has fewer than 2,500 
                        passenger boardings each year and 
                        receives scheduled passenger service; 
                        or
                          (ii) in a community which has a 
                        population of less than 10,000 and is 
                        not connected by a land highway or 
                        vehicular way to the land-connected 
                        National Highway System within a State.
  (j) Shell of Terminal Building.--In order to enable 
additional air service by an air carrier with less than 50 
percent of the scheduled passenger traffic at an airport, the 
Secretary may consider the shell of a terminal building 
(including heating, ventilation, and air conditioning) to be an 
eligible airport-related project under subsection (a)(3)(E).

Sec.  40113. Administrative

  (a) General authority.--The Secretary of Transportation (or 
the Administrator of the Federal Aviation Administration with 
respect to aviation safety duties and powers designated to be 
carried out by the Administrator) may take action the Secretary 
or Administrator, as appropriate, considers necessary to carry 
out this part, including conducting investigations, prescribing 
regulations, standards, and procedures, and issuing orders.
  (b) Hazardous material.--In carrying out this part, the 
Secretary has the same authority to regulate the transportation 
of hazardous material by air that the Secretary has under 
section 5103 of this title. However, this subsection does not 
prohibit or regulate the transportation of a firearm (as 
defined in section 232 of title 18) or ammunition for a 
firearm, when transported by an individual for personal use.
  (c) Governmental assistance.--The Secretary (or the 
Administrator of the Federal Aviation Administration with 
respect to aviation safety duties and powers designated to be 
carried out by the Administrator) may use the assistance of the 
Administrator of the National Aeronautics and Space 
Administration and any research or technical department, 
agency, or instrumentality of the United States Government on 
matters related to aircraft fuel and oil, and to the design, 
material, workmanship, construction, performance, maintenance, 
and operation of aircraft, aircraft engines, propellers, 
appliances, and air navigation facilities. Each department, 
agency, and instrumentality may conduct scientific and 
technical research, investigations, and tests necessary to 
assist the Secretary or Administrator of the Federal Aviation 
Administration in carrying out this part. This part does not 
authorize duplicating laboratory research activities of a 
department, agency, or instrumentality.
  (d) Indemnification.--The Administrator of the Federal 
Aviation Administration may indemnify an officer or employee of 
the Administration against a claim or judgment arising out of 
an act that the Administrator decides was committed within the 
scope of the official duties of the officer or employee.
  (e) Assistance to foreign aviation authorities.--
          (1) Safety-related training and operational 
        services.--The Administrator may provide safety-related 
        training and operational services to foreign aviation 
        authorities with or without reimbursement, if the 
        Administrator determines that providing such services 
        promotes aviation safety. To the extent practicable, 
        air travel reimbursed under this subsection shall be 
        conducted on United States air carriers.
          (2) Reimbursement sought.--The Administrator shall 
        actively seek reimbursement for services provided under 
        this subsection from foreign aviation authorities 
        capable of providing such reimbursement.
          (3) Crediting appropriations.--Funds received by the 
        Administrator pursuant to this section shall be 
        credited to the appropriation from which the expenses 
        were incurred in providing such services.
          (4) Reporting.--Not later than December 31, 1995, and 
        annually thereafter, the Administrator shall transmit 
        to Congress a list of the foreign aviation authorities 
        to which the Administrator provided services under this 
        subsection in the preceding fiscal year. Such list 
        shall specify the dollar value of such services and any 
        reimbursement received for such services.
  (f) Application of Certain Regulations to Alaska.--In 
amending title 14, Code of Federal Regulations, in a manner 
affecting intrastate aviation in Alaska, the Administrator of 
the Federal Aviation Administration shall consider the extent 
to which Alaska is not served by transportation modes other 
than aviation, and shall establish such regulatory distinctions 
as the Administrator considers appropriate.

Sec.  40125. SEVERABLE SERVICES CONTRACTS FOR PERIODS CROSSING FISCAL 
                    YEARS.

  (a) In General.--The Administrator of the Federal Aviation 
Administration may enter into a contract for procurement of 
severable services for a period that begins in one fiscal year 
and ends in the next fiscal year if (without regard to any 
option to extend the period of the contract) the contract 
period does not exceed one year.
  (b) Obligation of Funds.--Funds made available for a fiscal 
year may be obligated for the total amount of a contract 
entered into under the authority of subsection (a) of this 
section.

Sec.  40126. Overflights of national parks

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

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                    SUBPART II. ECONOMIC REGULATION

                  CHAPTER 417. OPERATIONS OF CARRIERS

                       SUBCHAPTER I. REQUIREMENTS

Sec.   41712. Unfair and deceptive practices and unfair methods of 
                    competition

  (a) In General._On the initiative of the Secretary of 
Transportation or the complaint of an air carrier, foreign air 
carrier, or ticket agent, and if the Secretary considers it is 
in the public interest, the Secretary may investigate and 
decide whether an air carrier, foreign air carrier, or ticket 
agent has been or is engaged in an unfair or deceptive practice 
or an unfair method of competition in air transportation or the 
sale of air transportation. If the Secretary, after notice and 
an opportunity for a hearing, finds that an air carrier, 
foreign air carrier, or ticket agent is engaged in an unfair or 
deceptive practice or unfair method of competition, the 
Secretary shall order the air carrier, foreign air carrier, or 
ticket agent to stop the practice or method.
  (b) Marketing Practices That Adversely Affect Service to 
Small or Medium Communities.--Within 180 days after the date of 
enactment of the Wendell H. Ford National Air Transportation 
System Improvement Act of 1998, the Secretary shall review the 
marketing practices of air carriers that may inhibit the 
availability of quality, affordable air transportation services 
to small and medium-sized communities, including--
          (1) marketing arrangements between airlines and 
        travel agents;
          (2) code-sharing partnerships;
          (3) computer reservation system displays;
          (4) gate arrangements at airports;
          (5) exclusive dealing arrangments; and
          (6) any other marketing practice that may have the 
        same effect.
  (c) Regulations.--If the Secretary finds, after conducting 
the review required by subsection (b), that marketing practices 
inhibit the availability of such service to such communities, 
then, after public notice and an opportunity for comment, the 
Secretary shall promulgate regulations that address the 
problem.
  (d) E-ticket Expiration Notice.--It shall be an unfair or 
deceptive practice under subsection (a) for any air carrier 
utilizing electronically transmitted tickets to fail to notify 
the purchaser of such a ticket of its expiration date, if any..

Sec.   41714. Availability of slots

  (a) Making Slots Available for Essential Air Service.--
          (1) Operational authority.--If basic essential air 
        service under subchapter II of this chapter is to be 
        provided from an eligible point to a high density 
        airport (other than Ronald Reagan Washington National 
        Airport),the Secretary of Transportation shall ensure 
        that the air carrier providing or selected to provide 
        such service has sufficient operational authority at 
        the high density airport to provide such service. The 
        operational authority shall allow flights at reasonable 
        times taking into account the needs of passengers with 
        connecting flights.
          (2) Exemptions.--If necessary to carry out the 
        objectives of paragraph (1), the Secretary shall by 
        order grant exemptions from the requirements of 
        subparts K and S of part 93 of title 14, Code of 
        Federal Regulations (pertaining to slots at high 
        density airports), to air carriers using Stage 3 
        aircraft or to commuter air carriers, unless such an 
        exemption would significantly increase operational 
        delays.
          (3) Assurance of access.--If the Secretary finds that 
        an exemption under paragraph (2) would significantly 
        increase operational delays, the Secretary shall take 
        such action as may be necessary to ensure that an air 
        carrier providing or selected to provide basic 
        essential air service is able to obtain access to a 
        high density airport; except that the Secretary shall 
        not be required to make slots available at O'Hare 
        International Airport in Chicago, Illinois, if the 
        number of slots available for basic essential air 
        service (including slots specifically designated as 
        essential air service slots and slots used for such 
        purposes) to and from such airport is at least 132 
        slots.
          (4) Action by the Secretary.--The Secretary shall 
        issue a final order under this subsection on or before 
        the 60th day after receiving a request from an air 
        carrier for operational authority under this 
        subsection.
  (b) Slots for Foreign Air Transportation.--
          (1) Exemptions.--If the Secretary finds it to be in 
        the public interest at a high density airport (other 
        than Ronald Reagan Washington National Airport), the 
        Secretary may grant by order exemptions from the 
        requirements of subparts K and S of part 93 of title 
        14, Code of Federal Regulations (pertaining to slots at 
        high density airports), to enable air carriers and 
        foreign air carriers to provide foreign air 
        transportation using Stage 3 aircraft.
          (2) Slot withdrawals.--The Secretary may not withdraw 
        a slot from an air carrier in order to allocate that 
        slot to a carrier to provide foreign air transportation 
        if the withdrawal of that slot would result in the 
        withdrawal of slots from an air carrier at O'Hare 
        International Airport under section 93.223 of title 14, 
        Code of Federal Regulations, in excess of the total 
        withdrawn from that air carrier as of October 31, 1993.
          (3) Equivalent rights of access.--The Secretary shall 
        not take a slot at a high density airport from an air 
        carrier and award such slot to a foreign air carrier if 
        the Secretary determines that air carriers are not 
        provided equivalent rights of access to airports in the 
        country of which such foreign air carrier is a citizen.
          (4) Period of effectiveness.--This subsection and 
        exemptions issued under this subsection shall cease to 
        be in effect when the final rules issued under 
        subsection (f) become effective.
  (c) Slots for New Entrants.--
          (1) In general.--If the Secretary finds it to be in 
        the public interest and the circumstances to be 
        exceptional, the Secretary may by order grant 
        exemptions from the requirements under subparts K and S 
        of part 93 of title 14, Code of Federal Regulations 
        (pertaining to slots at high density airports), to 
        enable new entrant air carriers to provide air 
        transportation at high density airports (other than 
        Ronald Reagan Washington National Airport).
          (2) Period of effectiveness.--Exemptions issued under 
        this subsection shall cease to be in effect on or after 
        the date on which the final rules issued under 
        subsection (f) become effective.
  (d) Special Rules for Ronald Reagan Washington National 
Airport.--
          (1) In general.--Notwithstanding sections 49104(a)(5) 
        and 49111(e) of this title, or any provision of this 
        section, the Secretary may, only under circumstances 
        determined by the Secretary to be exceptional, grant by 
        order to an air carrier currently holding or operating 
        a slot at Ronald Reagan Washington National Airport an 
        exemption from requirements under subparts K and S of 
        part 93 of title 14, Code of Federal Regulations 
        (pertaining to slots at Ronald Reagan Washington 
        National Airport), to enable that carrier to provide 
        air transportation with Stage 3 aircraft at Ronald 
        Reagan Washington National Airport; except that such 
        exemption shall not--
                  (A) result in an increase in the total number 
                of slots per day at Ronald Reagan Washington 
                National Airport;
                  (B) result in an increase in the total number 
                of slots at Ronald Reagan Washington National 
                Airport from 7:00 ante meridiem to 9:59 post 
                meridiem;
                  (C) increase the number of operations at 
                Ronald Reagan Washington National Airport in 
                any 1-hour period by more than 2 operations;
                  (D) result in the withdrawal or reduction of 
                slots operated by an air carrier;
                  (E) result in a net increase in noise impact 
                on surrounding communities resulting from 
                changes in timing of operations permitted under 
                this subsection; and
                  (F) continue in effect on or after the date 
                on which the final rules issued under 
                subsection (f) become effective.
          (2) Limitation on applicability.--Nothing in this 
        subsection shall adversely affect Exemption No. 5133, 
        as from time-to-time amended and extended.
          (3) Beyond-perimeter exemptions.--The Secretary of 
        Transportation shall by order grant exemptions from the 
        application of sections 49109 and 49111(e) to air 
        carriers to operate limited frequencies and aircraft on 
        select routes between Ronald Reagan Washington National 
        Airport and domestic hub airports of such carriers and 
        exemptions from the requirements of subparts K and S of 
        part 93, Code of Federal Regulations, if the Secretary 
        finds that the exemptions will--
                  (A) provide air transportation service with 
                domestic network benefits in areas beyond the 
                perimeter described in that section; and
                  (B) increase competition in multiple markets.
          (4) Within-perimeter exemptions.--The Secretary of 
        Transportation shall by order grant exemptions from the 
        requirements of section 49111(e) and subparts K and S 
        of part 93 of title 14, Code of Federal Regulations, to 
        commuter air carriers for service to airports smaller 
        than large hub airports (as defined in section 
        47134(d)(2)) within the perimeter established for civil 
        aircraft operations at Ronald Reagan Washington 
        National Airport. The Secretary shall develop criteria 
        for distributing slots for flights within the perimeter 
        to airports other than large hubs under this paragraph 
        in a manner consistent with the promotion of air 
        transportation.
          (5) Limitations.--
                  (A) Aircraft.--An exemption granted under 
                paragraph (3) or (4) may not be granted with 
                respect to any aircraft that is not a Stage 3 
                aircraft (as defined by the Secretary).
                  (B) Number and type of operations.--The 
                Secretary shall grant exemptions under 
                paragraph (3) and (4) that--
                          (i) will result in 12 new daily air 
                        carrier slots at such airport for long-
                        haul service beyond the perimeter;
                          (ii) will result in 12 new daily 
                        commuter slots at such airport; and
                          (iii) will not result in new daily 
                        commuter slots for service to any 
                        within-the-perimeter airport that is 
                        not smaller than a large hub airport 
                        (as defined in section 47134(d)(2)).
                  (C) Hours of operation.--In granting 
                exemptions under paragraphs (3) and (4), the 
                Secretary shall distribute the 24 new daily 
                slots fairly evenly across the hours between 
                7:00 a.m. and 9:59 p.m., so that--
                          (i) not more than 2 slots per hour 
                        shall be added during 9 of the hours 
                        beginning during that period; and
                          (ii) 1 slot per hour shall be added 
                        during 6 of the hours beginning during 
                        that period.
          (6) Protection of incumbent carriers.--An exemption 
        granted under paragraph (3) or (4) may not result in 
        the withdrawal of a slot from any incumbent air carrier 
        at that airport.
          (7) Review of safety, environmental, and noise 
        impact.--The Secretary--
                  (A) shall assess the impact of granting 
                exemptions under paragraphs (3) and (4) on the 
                environment (including noise levels) and safety 
                during the first 90 days after the date of 
                enactment of the Wendell H. Ford National Air 
                Transportation System Improvement Act of 1998; 
                and
                  (B) may not grant an exemption under 
                paragraph (3) or (4) or issue the additional 
                slots during that 90-day period unless the 
                Secretary has conducted such an assessment.
  (e) Study.--
          (1) Matters to be considered.--The Secretary shall 
        continue the Secretary's current examination of slot 
        regulations and shall ensure that the examination 
        includes consideration of--
                  (A) whether improvements in technology and 
                procedures of the air traffic control system 
                and the use of quieter aircraft make it 
                possible to eliminate the limitations on hourly 
                operations imposed by the high density rule 
                contained in part 93 of title 14 of the Code of 
                Federal Regulations or to increase the number 
                of operations permitted under such rule;
                  (B) the effects of the elimination of 
                limitations or an increase in the number of 
                operations allowed on each of the following:
                          (i) congestion and delay in any part 
                        of the national aviation system;
                          (ii) the impact of noise on persons 
                        living near the airport;
                          (iii) competition in the air 
                        transportation system;
                          (iv) the profitability of operations 
                        of airlines serving the airport; and
                          (v) aviation safety;
                  (C) the impact of the current slot allocation 
                process upon the ability of air carriers to 
                provide essential air service under subchapter 
                II of this chapter;
                  (D) the impact of such allocation process 
                upon the ability of new entrant air carriers to 
                obtain slots in time periods that enable them 
                to provide service;
                  (E) the impact of such allocation process on 
                the ability of foreign air carriers to obtain 
                slots;
                  (F) the fairness of such process to air 
                carriers and the extent to which air carriers 
                are provided equivalent rights of access to the 
                air transportation market in the countries of 
                which foreign air carriers holding slots are 
                citizens;
                  (G) the impact, on the ability of air 
                carriers to provide domestic and international 
                air service, of the withdrawal of slots from 
                air carriers in order to provide slots for 
                foreign air carriers; and
                  (H) the impact of the prohibition on slot 
                withdrawals in subsections (b)(2) and (b)(3) of 
                this section on the aviation relationship 
                between the United States Government and 
                foreign governments, including whether the 
                prohibition in such subsections will require 
                the withdrawal of slots from general and 
                military aviation in order to meet the needs of 
                air carriers and foreign air carriers providing 
                foreign air transportation (and the impact of 
                such withdrawal on general aviation and 
                military aviation) and whether slots will 
                become available to meet the needs of air 
                carriers and foreign air carriers to provide 
                foreign air transportation as a result of the 
                planned relocation of Air Force Reserve units 
                and the Air National Guard at O'Hare 
                International Airport.
          (2) Report.--Not later than January 31, 1995, the 
        Secretary shall complete the current examination of 
        slot regulations and shall transmit to the Committee on 
        Commerce, Science, and Transportation of the Senate and 
        the Committee on Transportation and Infrastructure of 
        the House of Representatives a report containing the 
        results of such examination.
  (f) Rulemaking.--The Secretary shall conduct a rulemaking 
proceeding based on the results of the study described in 
subsection (e). In the course of such proceeding, the Secretary 
shall issue a notice of proposed rulemaking not later than 
August 1, 1995, and shall issue a final rule not later than 90 
days after public comments are due on the notice of proposed 
rulemaking.
  (g) Weekend Operations.--The Secretary shall consider the 
advisability of revising section 93.227 of title 14, Code of 
Federal Regulations, so as to eliminate weekend schedules from 
the determination of whether the 80 percent standard of 
subsection (a)(1) of that section has been met.
  (h) Definitions.--In this section and section 41734(h), the 
following definitions apply:
          (1) Commuter air carrier.--[The term] Except as 
        provided in paragraph (5), the term ``commuter air 
        carrier'' means a commuter operator as defined or 
        applied in subpart K or S of part 93 of title 14, Code 
        of Federal Regulations.
          (2) High density airport.--The term ``high density 
        airport'' means an airport at which the Administrator 
        limits the number of instrument flight rule takeoffs 
        and landings of aircraft.
          (3) New entrant air carrier.--The term ``new entrant 
        air carrier'' means an air carrier that does not hold a 
        slot at the airport concerned and has never sold or 
        given up a slot at that airport after December 16, 
        1985, and a limited incumbent carrier as defined in 
        subpart S of part 93 of title 14, Code of Federal 
        Regulations.
          (4) Slot.--The term ``slot'' means a reservation for 
        an instrument flight rule takeoff or landing by an air 
        carrier of an aircraft in air transportation.
          (5) Nonstop jet exemption definitions.--Any term used 
        in subsection (j) that is defined in section 41762 has 
        the meaning given that term by section 41762.
  (i) Expeditious Consideration of Certain Exemption 
Requests.--Within 120 days after receiving an application for 
an exemption under subsection (a)(2) to improve air service 
between a nonhub airport (as defined in section 41731(a)(4)) 
and a high density airport subject to the exemption authority 
under subsection (a), the Secretary shall grant or deny the 
exemption. The Secretary shall notify the Senate Committee on 
Commerce, Science, and Transportation and the House Committee 
on Transportation and Infrastructure of the grant or denial 
within 14 calendar days after the determination and state the 
reasons for the determination.
  (j) Slots for Nonstop Jet Service Exemption.--
          (1) In general.--Within 90 days after receiving an 
        application for an exemption to provide nonstop 
        regional jet air service between--
                  (A) an airport that is smaller than a large 
                hub airport (as defined in section 
                47134(d)(2)); and
                  (B) a high density airport subject to the 
                exemption authority under subsection (a),
        the Secretary shall grant or deny the exemption in 
        accordance with established principles of safety and 
        the promotion of competition.
          (2) Existing slots taken into account.--In deciding 
        to grant or deny the exemption, the Secretary may take 
        into consideration the slots already used by the 
        applicant.
          (3) Conditions.--The Secretary may grant an exemption 
        to an air carrier under paragraph (1)--
                  (A) for a period of not less than 12 months;
                  (B) for a minimum of 2 daily roundtrip 
                flights; and
                  (C) for a maximum of 3 daily roundtrip 
                flights.
          (4) Change of nonhub, small hub, or medium hub 
        airport; jet aircraft.--The Secretary may, upon 
        application made by an air carrier operating under an 
        exemption granted under paragraph (1)--
                  (A) authorize the air carrier to upgrade its 
                service under the exemption to a larger jet 
                aircraft; and
                  (B) authorize an air carrier operating under 
                such an exemption to change the nonhub airport 
                or small hub airport for which the exemption 
                was granted to provide the same service to a 
                different airport that is smaller than a large 
                hub airport (as defined in section 47134(d)(2)) 
                if--
                          (i) the air carrier has been 
                        operating under the exemption for a 
                        period of not less than 12 months; and
                          (ii) the air carrier can demonstrate 
                        unmitigatable losses.
          (5) Forefeiture for misuse.--Any exemption granted 
        under paragraph (1) shall be terminated immediately by 
        the Secretary if the air carrier to which it was 
        granted uses the slot for any purpose other than the 
        purpose for which it was granted or in violation of the 
        conditions under which it was granted.
          (6) Restoration of air service.--To the extent that--
                  (A) slots were withdrawn from an air carrier 
                under subsection (b) of this section;
                  (B) the withdrawal of slots under that 
                subsection resulted in a net loss of slots; and
                  (C) the net loss of slots resulting from the 
                withdrawal had an adverse effect on service to 
                nonhub airports and in other domestic markets,
        the Secretary shall give priority consideration to the 
        request of any air carrier from which slots were 
        withdrawn under that section for an equivalent number 
        of slots at the airport where the slots were withdrawn.
          (7) Priority to new entrants and limited incumbent 
        carriers.--In assigning slots under this subsection the 
        Secretary shall, in conjunction with paragraph (5), 
        give priority consideration to an application from an 
        air carrier that, as of July 1, 1998, held fewer than 
        20 slots at the high density airport for which it filed 
        an exemption application.
  (k) Slot Withdrawal May Not Affect Nonhub Service.--The 
Secretary may not withdraw a slot from a United States air 
carrier under this section in order to provide a slot to a 
foreign air carrier for purposes of international air 
transportation unless the Secretary finds that--
          (1) the withdrawal of that slot from the United 
        States air carrier will not adversely affect air 
        service to nonhub airports; and
          (2) United States air carriers seeking slots for 
        purposes of international air transportation at an 
        airport in the home country of that foreign air carrier 
        receive reciprocal treatment by the government of that 
        country.

Sec. 41716. Joint venture agreements

  (a) Definitions.--In this section--
          (1) Joint venture agreement.--The term ``joint 
        venture agreement'' means an agreement entered into by 
        a major air carrier on or after January 1, 1998, with 
        regard to (A) code-sharing, blocked-space arrangements, 
        long-term wet leases (as defined in section 207.1 of 
        title 14, Code of Federal Regulations) of a substantial 
        number (as defined by the Secretary by regulation) of 
        aircraft, or frequent flyer programs, or (B) any other 
        cooperative working arrangement (as defined by the 
        Secretary by regulation) between 2 or more major air 
        carriers that affects more than 15 percent of the total 
        number of available seat miles offered by the major air 
        carriers.
          (2) Major air carrier.--The term ``major air 
        carrier'' means a passenger air carrier that is 
        certificated under chapter 411 of this title and 
        included in Carrier Group III under criteria contained 
        in section 04 of part 241 of title 14, Code of Federal 
        Regulations.
  (b) Submission of Joint Venture Agreement.--At least 30 days 
before a joint venture agreement may take effect, each of the 
major air carriers that entered into the agreement shall submit 
to the Secretary--
          (1) a complete copy of the joint venture agreement 
        and all related agreements; and
          (2) other information and documentary material that 
        the Secretary may require by regulation.
  (c) Extension of waiting period.--
          (1) In general.--The Secretary may extend the 30-day 
        period referred to in subsection (b) until--
                  (A) in the case of a joint venture agreement 
                with regard to code-sharing, the 150th day 
                following the last day of such period; and
                  (B) in the case of any other joint venture 
                agreement, the 60th day following the last day 
                of such period.
          (2) Publication of reasons for extension.--If the 
        Secretary extends the 30-day period referred to in 
        subsection (b), the Secretary shall publish in the 
        Federal Register the reasons of the Secretary for 
        making the extension.
  (d) Termination of waiting period.--At any time after the 
date of submission of a joint venture agreement under 
subsection (b), the Secretary may terminate the waiting periods 
referred to in subsections (b) and (c) with respect to the 
agreement.
  (e) Regulations.--The effectiveness of a joint venture 
agreement may not be delayed due to any failure of the 
Secretary to issue regulations to carry out this subsection.
  (f) Memorandum To Prevent Duplicative Reviews.--Promptly 
after the date of enactment of this section, the Secretary 
shall consult with the Assistant Attorney General of the 
Antitrust Division of the Department of Justice in order to 
establish, through a written memorandum of understanding, 
preclearance procedures to prevent unnecessary duplication of 
effort by the Secretary and the Assistant Attorney General 
under this section and the United States antitrust laws, 
respectively.
  (g) Prior Agreements.--With respect to a joint venture 
agreement entered into before the date of enactment of this 
section as to which the Secretary finds that--
          (1) the parties have submitted the agreement to the 
        Secretary before such date of enactment; and
          (2) the parties have submitted any information on the 
        agreement requested by the Secretary,
the waiting period described in paragraphs (2) and (3) shall 
begin on the date, as determined by the Secretary, on which all 
such information was submitted and end on the last day to which 
the period could be extended under this section.
  (h) Limitation on statutory construction.--The authority 
granted to the Secretary under this subsection shall not in any 
way limit the authority of the Attorney General to enforce the 
antitrust laws as defined in the first section of the Clayton 
Act (15 U.S.C. 12).

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                    SUBPART II. ECONOMIC REGULATION

                  CHAPTER 417. OPERATIONS OF CARRIERS

               SUBCHAPTER II. SMALL COMMUNITY AIR SERVICE

Sec.  41736. Air transportation to noneligible places

  (a) Proposals and decisions.--
          (1) A State or local government may propose to the 
        Secretary of Transportation that the Secretary provide 
        compensation to an air carrier to provide air 
        transportation to a place that is not an eligible place 
        under this subchapter. Not later than 90 days after 
        receiving a proposal under this section, the Secretary 
        shall--
                  (A) decide whether to designate the place as 
                eligible to receive compensation under this 
                section; and
                  (B)(i) approve the proposal if the State or 
                local government or a personis willing and able 
                to pay 50 percent of the compensation for 
                providing the transportation, and notify the 
                State or local government of the approval; or
                  (ii) disapprove the proposal if the Secretary 
                decides the proposal isnot reasonable under 
                paragraph (2) of this subsection, and notify 
                the State or local government of the 
                disapproval and the reasons for the 
                disapproval.
          (2) In deciding whether a proposal is reasonable, the 
        Secretary shall consider, among other factors--
                  (A) the traffic-generating potential of the 
                place;
                  (B) the cost to the United States Government 
                of providing the proposedtransportation; and
                  (C) the distance of the place from the 
                closest hub airport.
  (b) Approval for certain air transportation.--Notwithstanding 
subsection (a)(1)(B) of this section, the Secretary shall 
approve a proposal under this section to compensate an air 
carrier for providing air transportation to a place in the 48 
contiguous States or the District of Columbia and designate the 
place as eligible for compensation under this section if--
          (1) at any time before October 23, 1978, the place 
        was served by a carrier holding a certificate under 
        section 401 of the Federal Aviation Act of 1958;
          (2) the place is more than 50 miles from the nearest 
        small hub airport or an eligible place;
          (3) the place is more than 150 miles from the nearest 
        hub airport; and
          (4) the State or local government submitting the 
        proposal or a person is willing and able to pay 25 
        percent of the cost of providing the compensated 
        transportation.
Paragraph (4) does not apply to any community approved for 
service under this section during the period beginning October 
1, 1991, and ending December 31, 1997.
  (c) Level of air transportation.--
          (1) If the Secretary designates a place under 
        subsection (a)(1) of this section as eligible for 
        compensation under this section, the Secretary shall 
        decide, not later than 6 months after the date of the 
        designation, on the level of air transportation to be 
        provided under this section. Before making a decision, 
        the Secretary shall consider the views of any 
        interested community, the appropriate State authority 
        of the State in which the place is located, and the 
        State or local government or person agreeing to pay 
        compensation for the transportation under subsection 
        (b)(4) of this section.
          (2) After making the decision under paragraph (1) of 
        this subsection, the Secretary shall provide notice 
        that any air carrier that is willing to provide the 
        level of air transportation established under paragraph 
        (1) for a place may submit an application to provide 
        the transportation. In selecting an applicant, the 
        Secretary shall consider, among other factors--
                   (A) the factors listed in section 
                41733(c)(1) of this title; and
                   (B) the views of the State or local 
                government or person agreeing to 
                paycompensation for the transportation.
  (d) Compensation payments.--
          (1) The Secretary shall pay compensation under this 
        section when and in the way the Secretary decides is 
        appropriate. The Secretary shall continue to pay 
        compensation under this section only as long as--
                  (A) the air carrier maintains the level of 
                air transportation establishedby the Secretary 
                under subsection (c)(1) of this section;
                  (B) the State or local government or person 
                agreeing to pay compensationfor transportation 
                under this section continues to pay that 
                compensation; and
                  (C) the Secretary decides the compensation is 
                necessary to maintain thetransportation to the 
                place.
          (2) The Secretary may require the State or local 
        government or person agreeing to pay compensation under 
        this section to make advance payments or provide other 
        security to ensure that timely payments are made.
  (e) Review.--The Secretary shall review periodically the 
level of air transportation provided under this section. Based 
on the review and consultation with any interested community, 
the appropriate State authority of the State in which the 
community is located, and the State or local government or 
person paying compensation under this section, the Secretary 
may make appropriate adjustments in the level of 
transportation.
  (f) Withdrawal of eligibility designations.--After providing 
notice and an opportunity for interested persons to comment, 
the Secretary may withdraw the designation of a place under 
subsection (a)(1) of this section as eligible to receive 
compensation under this section if the place has received air 
transportation under this section for at least 2 years and the 
Secretary decides the withdrawal would be in the public 
interest. The Secretary by regulation shall prescribe standards 
for deciding whether the withdrawal of a designation under this 
subsection is in the public interest. The standards shall 
include the factors listed in subsection (a)(2) of this 
section.
  (g) Ending, suspending, and reducing air transportation.--An 
air carrier providing air transportation for compensation under 
this section may end, suspend, or reduce that transportation 
below the level of transportation established by the Secretary 
under this section only after giving the Secretary, the 
affected community, and the State or local government or person 
paying compensation under this section at least 30 days' notice 
before ending, suspending, or reducing the transportation.

Sec.  41743. Air service program for small communities

  (a) Communities Program.--Under advisory guidelines 
prescribed by the Secretary of Transportation, a small 
community or a consortia of small communities or a State may 
develop an assessment of its air service requirements, in such 
form as the program director designated by the Secretary under 
section 102(g) may require, and submit the assessment and 
service proposal to the program director.
  (b) Selection of Participants.--In selecting community 
programs for participation in the communities program under 
subsection (a), the program director shall apply criteria, 
including geographical diversity and the presentation of unique 
circumstances, that will demonstrate the feasibility of the 
program.
  (c) Carriers Program.--The program director shall invite part 
121 air carriers and regional/commuter carriers (as such terms 
are defined in section 41715(d) of this title) to offer service 
proposals in response to, or in conjunction with, community 
aircraft service assessments submitted to the office under 
subsection (a). A service proposal under this paragraph shall 
include--
          (1) an assessment of potential daily passenger 
        traffic, revenues, and costs necessary for the carrier 
        to offer the service;
          (2) a forecast of the minimum percentage of that 
        traffic the carrier would require the community to 
        garner in order for the carrier to start up and 
        maintain the service; and
          (3) the costs and benefits of providing jet service 
        by regional or other jet aircraft.
  (d) Program Support Function.--The program director shall 
work with small communities and air carriers, taking into 
account their proposals and needs, to facilitate the initiation 
of service. The program director--
          (1) may work with communities to develop innovative 
        means and incentives for the initiation of service;
          (2) may obligate funds appropriated under section 
        41742(b)(3) of this title to carry out this section;
          (3) shall continue to work with both the carriers and 
        the communities to develop a combination of community 
        incentives and carrier service levels that--
                  (A) are acceptable to communities and 
                carriers; and
                  (B) do not conflict with other Federal or 
                State programs to facilitate air transportation 
                to the communities;
          (4) designate an airport in the program as an Air 
        Service Development Zone and work with the community on 
        means to attract business to the area surrounding the 
        airport, to develop land use options for the area, and 
        provide data, working with the Department of Commerce 
        and other agencies;
          (5) take such other action under this chapter as may 
        be appropriate.
  (e) Limitations.--
          (1) Community support.--The program director may not 
        provide financial assistance under subsection (c)(2) to 
        any community unless the program director determines 
        that--
                  (A) a public-private partnership exists at 
                the community level to carry out the 
                community's proposal;
                  (B) the community will make a substantial 
                financial contribution that is appropriate for 
                that community's resources, but of not less 
                than 25 percent of the cost of the project in 
                any event;
                  (C) the community has established an open 
                process for soliciting air service proposals; 
                and
                  (D) the community will accord similar 
                benefits to air carriers that are similarly 
                situated.
          (2) Amount.--The program director may not obligate 
        more than $30,000,000 of the amounts appropriated under 
        section 41742(b)(3) of this title over the 4 years of 
        the program.
          (3) Number of participants.--The program established 
        under subsection (a) shall not involve more than 40 
        communities or consortia of communities.
  (f) Report.--The program director shall report through the 
Secretary to the Congress annually on the progress made under 
this section during the preceding year in expanding commercial 
aviation service to smaller communities.

Sec.  41744. Pilot program project authority

  (a) In General.--The program director designated by the 
Secretary of Transportation under section 102(g)(1) shall 
establish a 4-year pilot program--
          (1) to assist communities and States with inadequate 
        access to the national transportation system to improve 
        their access to that system; and
          (2) to facilitate better air service link-ups to 
        support the improved access.
  (b) Project Authority.--Under the pilot program established 
pursuant to subsection (a), the program director may--
          (1) out of amounts appropriated under section 
        41742(b)(3) of this title, provide financial assistance 
        by way of grants to small communities or consortia of 
        small communities under section 41743 of up to $500,000 
        per year; and
          (2) take such other action as may be appropriate.
  (c) Other Action.--Under the pilot program established 
pursuant to subsection (a), the program director may facilitate 
service by--
          (1) working with airports and air carriers to ensure 
        that appropriate facilities are made available at 
        essential airports;
          (2) collecting data on air carrier service to small 
        communities; and
          (3) providing policy recommendations to the Secretary 
        to stimulate air service and competition to small 
        communities.

Sec.  41745. Assistance to communities for service

  (a) In General.--Financial assistance provided under section 
41743 during any fiscal year as part of the pilot program 
established under section 41744(a) shall be implemented for not 
more than--
          (1) 4 communities within any State at any given time; 
        and
          (2) 40 communities in the entire program at any time.
For purposes of this subsection, a consortium of communities 
shall be treated as a single community.
  (b) Eligibility.--In order to participate in a pilot project 
under this subchapter, a State, community, or group of 
communities shall apply to the Secretary in such form and at 
such time, and shall supply such information, as the Secretary 
may require, and shall demonstrate to the satisfaction of the 
Secretary that--
          (1) the applicant has an identifiable need for 
        access, or improved access, to the national air 
        transportation system that would benefit the public;
          (2) the pilot project will provide material benefits 
        to a broad section of the travelling public, 
        businesses, educational institutions, and other 
        enterprises whose access to the national air 
        transportation system is limited;
          (3) the pilot project will not impede competition; 
        and
          (4) the applicant has established, or will establish, 
        public-private partnerships in connection with the 
        pilot project to facilitate service to the public.
  (c) Coordination with Other Provisions of Subchapter.--The 
Secretary shall carry out the 4-year pilot program authorized 
by this subchapter in such a manner as to complement action 
taken under the other provisions of this subchapter. To the 
extent the Secretary determines to be appropriate, the 
Secretary may adopt criteria for implementation of the 4-year 
pilot program that are the same as, or similar to, the criteria 
developed under the preceding sections of this subchapter for 
determining which airports are eligible under those sections. 
The Secretary shall also, to the extent possible, provide 
incentives where no direct, viable, and feasible alternative 
service exists, taking into account geographical diversity and 
appropriate market definitions.
  (d) Maximization of Participation.--The Secretary shall 
structure the program established pursuant to section 41744(a) 
in a way designed to--
          (1) permit the participation of the maximum feasible 
        number of communities and States over a 4-year period 
        by limiting the number of years of participation or 
        otherwise; and
          (2) obtain the greatest possible leverage from the 
        financial resources available to the Secretary and the 
        applicant by--
                  (A) progressively decreasing, on a project-
                by-project basis, any Federal financial 
                incentives provided under this chapter over the 
                4-year period; and
                  (B) terminating as early as feasible Federal 
                financial incentives for any project determined 
                by the Secretary after its implementation to 
                be--
                          (i) viable without further support 
                        under this subchapter; or
                          (ii) failing to meet the purposes of 
                        this chapter or criteria established by 
                        the Secretary under the pilot program.
  (e) Success Bonus.--If Federal financial incentives to a 
community are terminated under subsection (d)(2)(B) because of 
the success of the program in that community, then that 
community may receive a one-time incentive grant to ensure the 
continued success of that program.
  (f) Program to Terminate in 4 Years.--No new financial 
assistance may be provided under this subchapter for any fiscal 
year beginning more than 4 years after the date of enactment of 
the Wendell H. Ford National Air Transportation System 
Improvement Act of 1998.

Sec.  41746. Additional authority

  In carrying out this chapter, the Secretary--
          (1) may provide assistance to States and communities 
        in the design and application phase of any project 
        under this chapter, and oversee the implementation of 
        any such project;
          (2) may assist States and communities in putting 
        together projects under this chapter to utilize private 
        sector resources, other Federal resources, or a 
        combination of public and private resources;
          (3) may accord priority to service by jet aircraft;
          (4) take such action as may be necessary to ensure 
        that financial resources, facilities, and 
        administrative arrangements made under this chapter are 
        used to carry out the purposes of title VI of the 
        Wendell H. Ford National Air Transportation System 
        Improvement Act of 1998; and
          (5) shall work with the Federal Aviation 
        Administration on airport and air traffic control needs 
        of communities in the program.

Sec.  41747. Air traffic control services pilot program

  (a) In General.--To further facilitate the use of, and 
improve the safety at, small airports, the Administrator of the 
Federal Aviation Administration shall establish a pilot program 
to contract for Level I air traffic control services at 20 
facilities not eligible for participation in the Federal 
Contract Tower Program.
  (b) Program Components.--In carrying out the pilot program 
established under subsection (a), the Administrator may--
          (1) utilize current, actual, site-specific data, 
        forecast estimates, or airport system plan data 
        provided by a facility owner or operator;
          (2) take into consideration unique aviation safety, 
        weather, strategic national interest, disaster relief, 
        medical and other emergency management relief services, 
        status of regional airline service, and related factors 
        at the facility;
          (3) approve for participation any facility willing to 
        fund a pro rata share of the operating costs used by 
        the Federal Aviation Administration to calculate, and, 
        as necessary, a 1:1 benefit-to-cost ratio, as required 
        for eligibility under the Federal Contract Tower 
        Program; and
          (4) approve for participation no more than 3 
        facilities willing to fund a pro rata share of 
        construction costs for an air traffic control tower so 
        as to achieve, at a minimum, a 1:1 benefit-to-cost 
        ratio, as required for eligibility under the Federal 
        Contract Tower Program, and for each of such facilities 
        the Federal share of construction costs does not exceed 
        $1,000,000.
  (c) Report.--One year before the pilot program established 
under subsection (a) terminates, the Administrator shall report 
to the Congress on the effectiveness of the program, with 
particular emphasis on the safety and economic benefits 
provided to program participants and the national air 
transportation system.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                    SUBPART II. ECONOMIC REGULATION

                CHAPTER 421. LABOR-MANAGEMENT PROVISIONS


            subchapter iii--whistleblower protection program


Sec. 42121. Protection of employees providing air safety information

  (a) Discrimination Against Airline Employees.--No air carrier 
or contractor or subcontractor of an air carrier may discharge 
an employee of the air carrier or the contractor or 
subcontractor of an air carrier or otherwise discriminate 
against any such employee with respect to compensation, terms, 
conditions, or privileges of employment because the employee 
(or any person acting pursuant to a request of the employee)--
          (1) provided, caused to be provided, or is about to 
        provide or cause to be provided to the Federal 
        Government information relating to any violation or 
        alleged violation of any order, regulation, or standard 
        of the Federal Aviation Administration or any other 
        provision of Federal law relating to air carrier safety 
        under this subtitle or any other law of the United 
        States;
          (2) has filed, caused to be filed, or is about to 
        file or cause to be filed a proceeding relating to any 
        violation or alleged violation of any order, 
        regulation, or standard of the Federal Aviation 
        Administration or any other provision of Federal law 
        relating to air carrier safety under this subtitle or 
        any other law of the United States;
          (3) testified or will testify in such a proceeding; 
        or
          (4) assisted or participated or is about to assist or 
        participate in such a proceeding.
  (b) Department of Labor Complaint Procedure.--
          (1) Filing and notification.--
                  (A) In general.--In accordance with this 
                paragraph, a person may file (or have a person 
                file on behalf of that person) a complaint with 
                the Secretary of Labor if that person believes 
                that an air carrier or contractor or 
                subcontractor of an air carrier discharged or 
                otherwise discriminated against that person in 
                violation of subsection (a).
                  (B) Requirements for filing complaints.--A 
                complaint referred to in subparagraph (A) may 
                be filed not later than 90 days after an 
                alleged violation occurs. The complaint shall 
                state the alleged violation.
                  (C) Notification.--Upon receipt of a 
                complaint submitted under subparagraph (A), the 
                Secretary of Labor shall notify the air 
                carrier, contractor, or subcontractor named in 
                the complaint and the Administrator of the 
                Federal Aviation Administration of the--
                          (i) filing of the complaint;
                          (ii) allegations contained in the 
                        complaint;
                          (iii) substance of evidence 
                        supporting the complaint; and
                          (iv) opportunities that are afforded 
                        to the air carrier, contractor, or 
                        subcontractor under paragraph (2).
          (2) Investigation; preliminary order.--
                  (A) In general.--
                          (i) Investigation.--Not later than 60 
                        days after receipt of a complaint filed 
                        under paragraph (1) and after affording 
                        the person named in the complaint an 
                        opportunity to submit to the Secretary 
                        of Labor a written response to the 
                        complaint and an opportunity to meet 
                        with a representative of the Secretary 
                        to present statements from witnesses, 
                        the Secretary of Labor shall conduct an 
                        investigation and determine whether 
                        there is reasonable cause to believe 
                        that the complaint has merit and notify 
                        in writing the complainant and the 
                        person alleged to have committed a 
                        violation of subsection (a) of the 
                        Secretary's findings.
                          (ii) Order.--Except as provided in 
                        subparagraph (B), if the Secretary of 
                        Labor concludes that there is 
                        reasonable cause to believe that a 
                        violation of subsection (a) has 
                        occurred, the Secretary shall accompany 
                        the findings referred to in clause (i) 
                        with a preliminary order providing the 
                        relief prescribed under paragraph 
                        (3)(B).
                          (iii) Objections.--Not later than 30 
                        days after the date of notification of 
                        findings under this paragraph, the 
                        person alleged to have committed the 
                        violation or the complainant may file 
                        objections to the findings or 
                        preliminary order and request a hearing 
                        on the record.
                          (iv) Effect of filing.--The filing of 
                        objections under clause (iii) shall not 
                        operate to stay any reinstatement 
                        remedy contained in the preliminary 
                        order.
                          (v) Hearings.--Hearings conducted 
                        pursuant to a request made under clause 
                        (iii) shall be conducted expeditiously. 
                        If a hearing is not requested during 
                        the 30-day period prescribed in clause 
                        (iii), the preliminary order shall be 
                        deemed a final order that is not 
                        subject to judicial review.
                  (B) Requirements.--
                          (i) Required showing by 
                        complainant.--The Secretary of Labor 
                        shall dismiss a complaint filed under 
                        this subsection and shall not conduct 
                        an investigation otherwise required 
                        under subparagraph (A) unless the 
                        complainant makes a prima facie showing 
                        that any behavior described in 
                        paragraphs (1) through (4) of 
                        subsection (a) was a contributing 
                        factor in the unfavorable personnel 
                        action alleged in the complaint.
                          (ii) Showing by employer.--
                        Notwithstanding a finding by the 
                        Secretary that the complainant has made 
                        the showing required under clause (i), 
                        no investigation otherwise required 
                        under subparagraph (A) shall be 
                        conducted if the employer demonstrates, 
                        by clear and convincing evidence, that 
                        the employer would have taken the same 
                        unfavorable personnel action in the 
                        absence of that behavior.
                          (iii) Criteria for determination by 
                        Secretary.--The Secretary may determine 
                        that a violation of subsection (a) has 
                        occurred only if the complainant 
                        demonstrates that any behavior 
                        described in paragraphs (1) through (4) 
                        of subsection (a) was a contributing 
                        factor in the unfavorable personnel 
                        action alleged in the complaint.
                          (iv) Prohibition.--Relief may not be 
                        ordered under subparagraph (A) if the 
                        employer demonstrates by clear and 
                        convincing evidence that the employer 
                        would have taken the same unfavorable 
                        personnel action in the absence of that 
                        behavior.
          (3) Final order.--
                  (A) Deadline for issuance; settlement 
                agreements.--
                          (i) In general.--Not later than 120 
                        days after conclusion of a hearing 
                        under paragraph (2), the Secretary of 
                        Labor shall issue a final order that--
                                  (I) provides relief in 
                                accordance with this paragraph; 
                                or
                                  (II) denies the complaint.
                          (ii) Settlement agreement.--At any 
                        time before issuance of a final order 
                        under this paragraph, a proceeding 
                        under this subsection may be terminated 
                        on the basis of a settlement agreement 
                        entered into by the Secretary of Labor, 
                        the complainant, and the air carrier, 
                        contractor, or subcontractor alleged to 
                        have committed the violation.
                  (B) Remedy.--If, in response to a complaint 
                filed under paragraph (1), the Secretary of 
                Labor determines that a violation of subsection 
                (a) has occurred, the Secretary of Labor shall 
                order the air carrier, contractor, or 
                subcontractor that the Secretary of Labor 
                determines to have committed the violation to--
                          (i) take action to abate the 
                        violation;
                          (ii) reinstate the complainant to the 
                        former position of the complainant and 
                        ensure the payment of compensation 
                        (including back pay) and the 
                        restoration of terms, conditions, and 
                        privileges associated with the 
                        employment; and
                          (iii) provide compensatory damages to 
                        the complainant.
                  (C) Costs of complaint.--If the Secretary of 
                Labor issues a final order that provides for 
                relief in accordance with this paragraph, the 
                Secretary of Labor, at the request of the 
                complainant, shall assess against the air 
                carrier, contractor, or subcontractor named in 
                the order an amount equal to the aggregate 
                amount of all costs and expenses (including 
                attorney and expert witness fees) reasonably 
                incurred by the complainant (as determined by 
                the Secretary of Labor) for, or in connection 
                with, the bringing of the complaint that 
                resulted in the issuance of the order.
                  (D) Frivolous complaints.--If the Secretary 
                of Labor finds that a complaint brought under 
                paragraph (1) is frivolous or was brought in 
                bad faith, the Secretary of Labor may award to 
                the prevailing employer a reasonable attorney 
                fee in an amount not to exceed $5,000.
          (4) Review.--
                  (A) Appeal to court of appeals.--
                          (i) In general.--Not later than 60 
                        days after a final order is issued 
                        under paragraph (3), a person adversely 
                        affected or aggrieved by that order may 
                        obtain review of the order in the 
                        United States court of appeals for the 
                        circuit in which the violation 
                        allegedly occurred or the circuit in 
                        which the complainant resided on the 
                        date of that violation.
                          (ii) Requirements for judicial 
                        review.--A review conducted under this 
                        paragraph shall be conducted in 
                        accordance with chapter 7 of title 5. 
                        The commencement of proceedings under 
                        this subparagraph shall not, unless 
                        ordered by the court, operate as a stay 
                        of the order that is the subject of the 
                        review.
                  (B) Limitation on collateral attack.--An 
                order referred to in subparagraph (A) shall not 
                be subject to judicial review in any criminal 
                or other civil proceeding.
          (5) Enforcement of order by secretary of labor.--
                  (A) In general.--If an air carrier, 
                contractor, or subcontractor named in an order 
                issued under paragraph (3) fails to comply with 
                the order, the Secretary of Labor may file a 
                civil action in the United States district 
                court for the district in which the violation 
                occurred to enforce that order.
                  (B) Relief.--In any action brought under this 
                paragraph, the district court shall have 
                jurisdiction to grant any appropriate form of 
                relief, including injunctive relief and 
                compensatory damages.
          (6) Enforcement of order by parties.--
                  (A) Commencement of action.--A person on 
                whose behalf an order is issued under paragraph 
                (3) may commence a civil action against the air 
                carrier, contractor, or subcontractor named in 
                the order to require compliance with the order. 
                The appropriate United States district court 
                shall have jurisdiction, without regard to the 
                amount in controversy or the citizenship of the 
                parties, to enforce the order.
                  (B) Attorney fees.--In issuing any final 
                order under this paragraph, the court may award 
                costs of litigation (including reasonable 
                attorney and expert witness fees) to any party 
                if the court determines that the awarding of 
                those costs is appropriate.
  (c) Mandamus.--Any nondiscretionary duty imposed by this 
section shall be enforceable in a mandamus proceeding brought 
under section 1361 of title 28.
  (d) Nonapplicability To Deliberate Violations.--Subsection 
(a) shall not apply with respect to an employee of an air 
carrier, or contractor or subcontractor of an air carrier who, 
acting without direction from the air carrier (or an agent, 
contractor, or subcontractor of the air carrier), deliberately 
causes a violation of any requirement relating to air carrier 
safety under this subtitle or any other law of the United 
States.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                          SUBPART III. SAFETY

                         CHAPTER 443. INSURANCE

Sec.   44309. Civil actions

  [(a) Disputed Losses.--A person may bring a civil action in a 
district court of the United States against the United States 
Government when a loss insured under this chapter is in 
dispute.]
  (a) Losses.--
          (1) A person may bring a civil action in a district 
        court of the United States or in the United States 
        Court of Federal Claims against the United States 
        Government when--
                  (A) a loss insured under this chapter is in 
                dispute; or
                  (B)(i) the person is subrogated to the rights 
                against the United States Government of a party 
                insured under this chapter (other than under 
                subsection 44305(b) of this title), under a 
                contract between the person and such insured 
                party; and
                  (ii) the person has paid to such insured 
                party, with the approval of the Secretary of 
                Transportation, an amount for a physical damage 
                loss that the Secretary of Transportation has 
                determined is a loss covered under insurance 
                issued under this chapter (other than insurance 
                issued under subsection 44305(b) of this 
                title).
          (2) A civil action involving the same matter (except 
        the action authorized by this subsection) may not be 
        brought against an agent, officer, or employee of the 
        Government carrying out this chapter. To the extent 
        applicable, the procedure in an action brought under 
        section 1346(a)(2) of title 28 applies to an action 
        under this subsection.
  (b) Venue and Joinder.--
          (1) A civil action under subsection (a) of this 
        section may be brought in the judicial district for the 
        District of Columbia or in the judicial district in 
        which the plaintiff or the agent of the plaintiff 
        resides if the plaintiff resides in the United States. 
        If the plaintiff does not reside in the United States, 
        the action may be brought in the judicial district for 
        the District of Columbia or in the judicial district in 
        which the Attorney General agrees to accept service.
          (2) An interested person may be joined as a party to 
        a civil action brought under subsection (a) of this 
        section initially or on motion of either party to the 
        action.
  (c) Time Requirements.--When an insurance claim is made under 
this chapter, the period during which, under section 2401 of 
title 28, a civil action must be brought under subsection (a) 
of this section is suspended until 60 days after the Secretary 
of Transportation denies the claim. The claim is deemed to be 
administratively denied if the Secretary does not act on the 
claim not later than 6 months after filing, unless the 
Secretary makes a different agreement with the claimant when 
there is good cause for an agreement.
  (d) Interpleader.--
          (1) If the Secretary admits the Government owes money 
        under an insurance claim under this chapter and there 
        is a dispute about the person that is entitled to 
        payment, the Government may bring a civil action of 
        interpleader in a district court of the United States 
        against the persons that may be entitled to payment. 
        The action may be brought in the judicial district for 
        the District of Columbia or in the judicial district in 
        which any party resides.
          (2) The district court may order a party not residing 
        or found in the judicial district in which the action 
        is brought to appear in a civil action under this 
        subsection. The order shall be served in a reasonable 
        manner decided by the district court. If the court 
        decides an unknown person might assert a claim under 
        the insurance that is the subject of the action, the 
        court may order service on that person by publication 
        in the Federal Register.
                  (3) Judgment in a civil action under this 
                subsection discharges the Government from 
                further liability to the parties to the action 
                and to all other persons served by publication 
                under paragraph (2) of this subsection.

Sec.  44310. Ending effective date

  The authority of the Secretary of Transportation to provide 
insurance and reinsurance under this chapter is not effective 
after December 31, [1998.] 2003.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                          SUBPART III. SAFETY

            CHAPTER 445. FACILITIES, PERSONNEL, AND RESEARCH

Sec.   44502. General facilities and personnel authority

  (a) General Authority.--
          (1) The Administrator of the Federal Aviation 
        Administration may--
                  (A) acquire, establish, improve, operate, and 
                maintain air navigation facilities; and
                  (B) provide facilities and personnel to 
                regulate and protect air traffic.
          (2) The cost of site preparation work associated with 
        acquiring, establishing, or improving an air navigation 
        facility under paragraph (1)(A) of this subsection 
        shall be charged to amounts available for that purpose 
        appropriated under section 48101(a) of this title. The 
        Secretary of Transportation may make an agreement with 
        an airport owner or sponsor (as defined in section 
        47102 of this title) so that the owner or sponsor will 
        provide the work and be paid or reimbursed by the 
        Secretary from the appropriated amounts.
          (3) The Secretary of Transportation may authorize a 
        department, agency, or instrumentality of the United 
        States Government to carry out any duty or power under 
        this subsection with the consent of the head of the 
        department, agency, or instrumentality.
          (4) Purchase of instrument landing system.--
                  (A) Establishment of program.--The Secretary 
                shall purchase precision approach instrument 
                landing system equipment for installation at 
                airports on an expedited basis.
                  (B) Authorization.--No less than $30,000,000 
                of the amounts appropriated under section 
                48101(a) for each of [fiscal years 1995 and 
                1996] fiscal years 1999, 2000, 2001, and 2002 
                shall be used for the purpose of carrying out 
                this paragraph, including [acquisition,] 
                acquisition under new or existing contracts, 
                site preparation work, installation, and 
                related expenditures.
  (b) Certification of Necessity.--Except for Government money 
expended under this part or for a military purpose, Government 
money may be expended to acquire, establish, construct, 
operate, repair, alter, or maintain an air navigation facility 
only if the Administrator of the Federal Aviation 
Administration certifies in writing that the facility is 
reasonably necessary for use in air commerce or for the 
national defense. An interested person may apply for a 
certificate for a facility to be acquired, established, 
constructed, operated, repaired, altered, or maintained by or 
for the person.
  (c) Ensuring Conformity with Plans and Policies.--
          (1) To ensure conformity with plans and policies for, 
        and allocation of, airspace by the Administrator of the 
        Federal Aviation Administration under section 
        40103(b)(1) of this title, a military airport, military 
        landing area, or missile or rocket site may be 
        acquired, established, or constructed, or a runway may 
        be altered substantially, only if the Administrator of 
        the Federal Aviation Administration is given reasonable 
        prior notice so that the Administrator of the Federal 
        Aviation Administration may advise the appropriate 
        committees of Congress and interested departments, 
        agencies, and instrumentalities of the Government on 
        the effect of the acquisition, establishment, 
        construction, or alteration on the use of airspace by 
        aircraft. A disagreement between the Administrator of 
        the Federal Aviation Administration and the Secretary 
        of Defense or the Administrator of the National 
        Aeronautics and Space Administration may be appealed to 
        the President for a final decision.
          (2) To ensure conformity, an airport or landing area 
        not involving the expenditure of Government money may 
        be established or constructed, or a runway may be 
        altered substantially, only if the Administrator of the 
        Federal Aviation Administration is given reasonable 
        prior notice so that the Administrator may provide 
        advice on the effects of the establishment, 
        construction, or alteration on the use of airspace by 
        aircraft.
  (d) Public Use and Emergency Assistance.--
          (1) The head of a department, agency, or 
        instrumentality of the Government having jurisdiction 
        over an air navigation facility owned or operated by 
        the Government may provide, under regulations the head 
        of the department, agency, or instrumentality 
        prescribes, for public use of the facility.
          (2) The head of a department, agency, or 
        instrumentality of the Government having jurisdiction 
        over an airport or emergency landing field owned or 
        operated by the Government may provide, under 
        regulations the head of the department, agency, or 
        instrumentality prescribes, for assistance, and the 
        sale of fuel, oil, equipment, and supplies, to an 
        aircraft, but only when necessary, because of an 
        emergency, to allow the aircraft to continue to the 
        nearest airport operated by private enterprise. The 
        head of the department, agency, or instrumentality 
        shall provide for the assistance and sale at the 
        prevailing local fair market value as determined by the 
        head of the department, agency, or instrumentality. An 
        amount that the head decides is equal to the cost of 
        the assistance provided and the fuel, oil, equipment, 
        and supplies sold shall be credited to the 
        appropriation from which the cost was paid. The balance 
        shall be credited to miscellaneous receipts.
  (e) Transfers of Instrument Landing Systems.--An airport may 
transfer, without consideration, to the Administrator of the 
Federal Aviation Administration an instrument landing system 
(and associated approach lighting equipment and runway visual 
range equipment) that conforms to performance specifications of 
the Administrator if a Government airport aid program, airport 
development aid program, or airport improvement project grant 
was used to assist in purchasing the system. The Administrator 
shall accept the system and operate and maintain it under 
criteria of the Administrator.

Sec.  44516. Human factors program

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

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                          SUBPART III. SAFETY

                     CHAPTER 447. SAFETY REGULATION

Sec.   44701. General requirements

  (a) Promoting Safety.--The Administrator of the Federal 
Aviation Administration shall promote safe flight of civil 
aircraft in air commerce by prescribing--
          (1) minimum standards required in the interest of 
        safety for appliances and for the design, material, 
        construction, quality of work, and performance of 
        aircraft, aircraft engines, and propellers;
          (2) regulations and minimum standards in the interest 
        of safety for--
                  (A) inspecting, servicing, and overhauling 
                aircraft, aircraft engines, propellers, and 
                appliances;
                  (B) equipment and facilities for, and the 
                timing and manner of, the inspecting, 
                servicing, and overhauling; and
                  (C) a qualified private person, instead of an 
                officer or employee of the Administration, to 
                examine and report on the inspecting, 
                servicing, and overhauling;
          (3) regulations required in the interest of safety 
        for the reserve supply of aircraft, aircraft engines, 
        propellers, appliances, and aircraft fuel and oil, 
        including the reserve supply of fuel and oil carried in 
        flight;
          (4) regulations in the interest of safety for the 
        maximum hours or periods of service of airmen and other 
        employees of air carriers; and
          (5) regulations and minimum standards for other 
        practices, methods, and procedure the Administrator 
        finds necessary for safety in air commerce and national 
        security.
  (b) Prescribing Minimum Safety Standards. The Administrator 
may prescribe minimum safety standards for--
          (1) an air carrier to whom a certificate is issued 
        under section 44705 of this title; and
          (2) operating an airport serving any passenger 
        operation of air carrier aircraft designed for at least 
        31 passenger seats.
  (c) Reducing and Eliminating Accidents.--The Administrator 
shall carry out this chapter in a way that best tends to reduce 
or eliminate the possibility or recurrence of accidents in air 
transportation. However, the Administrator is not required to 
give preference either to air transportation or to other air 
commerce in carrying out this chapter.
  (d) Considerations and Classification of Regulations and 
Standards.--When prescribing a regulation or standard under 
subsection (a) or (b) of this section or any of sections 44702-
44716 of this title, the Administrator shall--
          (1) consider--
                  (A) the duty of an air carrier to provide 
                service with the highest possible degree of 
                safety in the public interest; and
                  (B) differences between air transportation 
                and other air commerce; and
          (2) classify a regulation or standard appropriate to 
        the differences between air transportation and other 
        air commerce.
  (e) Bilateral Exchanges of Safety Oversight 
Responsibilities.--
          (1) Notwithstanding the provisions of this chapter, 
        and pursuant to Article 83 bis of the Convention on 
        International Civil Aviation, the Administrator may, by 
        a bilateral agreement with the aeronautical authorities 
        of another country, exchange with that country all or 
        part of their respective functions and duties with 
        respect to aircraft described in subparagraphs (A) and 
        (B), under the following articles of the Convention:
                  (A) Article 12 (Rules of the Air).
                  (B) Article 31 (Certificates of 
                Airworthiness).
                  (C) Article 32a (Licenses of Personnel).
        (2) The agreement under paragraph (1) may apply to--
                  (A) aircraft registered in the United States 
                operated pursuant to an agreement for the 
                lease, charter, or interchange of the aircraft 
                or any similar arrangement by an operator that 
                has its principal place of business or, if it 
                has no such place of business, its permanent 
                residence in another country; or
                  (B) aircraft registered in a foreign country 
                operated under an agreement for the lease, 
                charter, or interchange of the aircraft or any 
                similar arrangement by an operator that has its 
                principal place of business or, if it has no 
                such place of business, its permanent residence 
                in the United States.
          (3) The Administrator relinquishes responsibility 
        with respect to the functions and duties transferred by 
        the Administrator as specified in the bilateral 
        agreement, under the Articles listed in paragraph (1) 
        of this subsection for United States-registered 
        aircraft transferred abroad as described in 
        subparagraph (A) of that paragraph, and accepts 
        responsibility with respect to the functions and duties 
        under those Articles for aircraft registered abroad 
        that are transferred to the United States as described 
        in subparagraph (B) of that paragraph.
          (4) The Administrator may, in the agreement under 
        paragraph (1), predicate the transfer of these 
        functions and duties on any conditions the 
        Administrator deems necessary and prudent.
  [(e)] (f) Exemptions.--The Administrator may grant an 
exemption from a requirement of a regulation prescribed under 
subsection (a) or (b) of this section or any of sections 44702-
44716 of this title if the Administrator finds the exemption is 
in the public interest.

Sec.   44703. Airman certificates

  (a) General.--The Administrator of the Federal Aviation 
Administration shall issue an airman certificate to an 
individual when the Administrator finds, after investigation, 
that the individual is qualified for, and physically able to 
perform the duties related to, the position to be authorized by 
the certificate.
  (b) Contents.--
          (1) An airman certificate shall--
                  (A) be numbered and recorded by the 
                Administrator of the Federal Aviation 
                Administration;
                  (B) contain the name, address, and 
                description of the individual to whom the 
                certificate is issued;
                  (C) contain terms the Administrator decides 
                are necessary to ensure safety in air commerce, 
                including terms on the duration of the 
                certificate, periodic or special examinations, 
                and tests of physical fitness;
                  (D) specify the capacity in which the holder 
                of the certificate may serve as an airman with 
                respect to an aircraft; and
                  (E) designate the class the certificate 
                covers.
          (2) A certificate issued to a pilot serving in 
        scheduled air transportation shall have the designation 
        ``airline transport pilot'' of the appropriate class.
  (c) Appeals.--
          (1) An individual whose application for the issuance 
        or renewal of an airman certificate has been denied may 
        appeal the denial to the National Transportation Safety 
        Board, except if the individual holds a certificate 
        that--
                  (A) is suspended at the time of denial; or
                  (B) was revoked within one year from the date 
                of the denial.
          (2) The Board shall conduct a hearing on the appeal 
        at a place convenient to the place of residence or 
        employment of the applicant. The Board is not bound by 
        findings of fact of the Administrator of the Federal 
        Aviation Administration but is bound by all validly 
        adopted interpretations of laws and regulations the 
        Administrator carries out unless the Board finds an 
        interpretation is arbitrary, capricious, or otherwise 
        not according to law. At the end of the hearing, the 
        Board shall decide whether the individual meets the 
        applicable regulations and standards. The Administrator 
        is bound by that decision.
  (d) Restrictions and Prohibitions.--The Administrator of the 
Federal Aviation Administration may--
          (1) restrict or prohibit issuing an airman 
        certificate to an alien; or
          (2) make issuing the certificate to an alien 
        dependent on a reciprocal agreement with the government 
        of a foreign country.
  (e) Controlled Substance Violations.--The Administrator of 
the Federal Aviation Administration may not issue an airman 
certificate to an individual whose certificate is revoked under 
section 44710 of this title except--
          (1) when the Administrator decides that issuing the 
        certificate will facilitate law enforcement efforts; 
        and
          (2) as provided in section 44710(e)(2) of this title.
  (f) Modifications in System.--
          (1) The Administrator of the Federal Aviation 
        Administration shall make modifications in the system 
        for issuing airman certificates necessary to make the 
        system more effective in serving the needs of pilots 
        and officials responsible for enforcing laws related to 
        the regulation of controlled substances (as defined in 
        section 102 of the Comprehensive Drug Abuse Prevention 
        and Control Act of 1970 (21 U.S.C. 802)). The 
        modifications shall ensure positive and verifiable 
        identification of each individual applying for or 
        holding a certificate and shall address at least each 
        of the following deficiencies in, and abuses of, the 
        existing system:
                  (A) the use of fictitious names and addresses 
                by applicants for those certificates.
                  (B) the use of stolen or fraudulent 
                identification in applying for those 
                certificates.
                  (C) the use by an applicant of a post office 
                box or ``mail drop'' as a return address to 
                evade identification of the applicant's 
                address.
                  (D) the use of counterfeit and stolen airman 
                certificates by pilots.
                  (E) the absence of information about physical 
                characteristics of holders of those 
                certificates.
          (2) The Administrator of the Federal Aviation 
        Administration shall prescribe regulations to carry out 
        paragraph (1) of this subsection and provide a written 
        explanation of how the regulations address each of the 
        deficiencies and abuses described in paragraph (1). In 
        prescribing the regulations, the Administrator of the 
        Federal Aviation Administration shall consult with the 
        Administrator of Drug Enforcement, the Commissioner of 
        Customs, other law enforcement officials of the United 
        States Government, representatives of State and local 
        law enforcement officials, representatives of the 
        general aviation aircraft industry, representatives of 
        users of general aviation aircraft, and other 
        interested persons.
  (g) Certificate Denied for Dealing in Counterfeit Parts.--The 
Administrator may not issue a certificate to anyone convicted 
of a violation of any Federal or State law relating to the 
installation, production, repair, or sale of a counterfeit or 
falsely-represented aviation part or material.

Sec.   44710. Revocations of airman certificates for controlled 
                    substance violations

  (a) Definition.--In this section, ``controlled substance'' 
has the same meaning given that term in section 102 of the 
Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 
U.S.C. 802).
  (b) Revocation.--
          (1) The Administrator of the Federal Aviation 
        Administration shall issue an order revoking a 
        certificate issued to an individual under section 44703 
        of this title after the individual is convicted, under 
        a law of the United States or a State related to a 
        controlled substance (except a law related to simple 
        possession of a controlled substance), of an offense 
        punishable by death or imprisonment for more than one 
        year if the Administrator finds that--
                  (A) an aircraft was used to commit, or 
                facilitate the commission of, the offense; and
                  (B) the individual served as an airman, or 
                was on the aircraft, in connection with 
                committing, or facilitating the commission of, 
                the offense.
          (2) The Administrator shall issue an order revoking 
        an airman certificate issued an individual under 
        section 44703 of this title if the Administrator finds 
        that--
                  (A) the individual knowingly carried out an 
                activity punishable, under a law of the United 
                States or a State related to a controlled 
                substance (except a law related to simple 
                possession of a controlled substance), by death 
                or imprisonment for more than one year;
                  (B) an aircraft was used to carry out or 
                facilitate the activity; and
                  (C) the individual served as an airman, or 
                was on the aircraft, in connection with 
                carrying out, or facilitating the carrying out 
                of, the activity.
          (3) The Administrator has no authority under 
        paragraph (1) of this subsection to review whether an 
        airman violated a law of the United States or a State 
        related to a controlled substance.
  (c) Advice to Holders and Opportunity to Answer.--Before the 
Administrator revokes a certificate under subsection (b) of 
this section, the Administrator must--
          (1) advise the holder of the certificate of the 
        charges or reasons on which the Administrator relies 
        for the proposed revocation; and
          (2) provide the holder of the certificate an 
        opportunity to answer the charges and be heard why the 
        certificate should not be revoked.
  (d) Appeals.--
          (1) An individual whose certificate is revoked by the 
        Administrator under subsection (b) of this section may 
        appeal the revocation order to the National 
        Transportation Safety Board. The Board shall affirm or 
        reverse the order after providing notice and an 
        opportunity for a hearing on the record. When 
        conducting the hearing, the Board is not bound by 
        findings of fact of the Administrator but shall be 
        bound by all validly adopted interpretations of laws 
        and regulations the Administrator carries out and of 
        written agency policy guidance available to the public 
        related to sanctions to be imposed under this section 
        unless the Board finds an interpretation is arbitrary, 
        capricious, or otherwise not according to law.
          (2) When an individual files an appeal with the Board 
        under this subsection, the order of the Administrator 
        revoking the certificate is stayed. However, if the 
        Administrator advises the Board that safety in air 
        transportation or air commerce requires the immediate 
        effectiveness of the order--
                  (A) the order remains effective; and
                  (B) the Board shall make a final disposition 
                of the appeal not later than 60 days after the 
                Administrator so advises the Board.
          (3) An individual substantially affected by an order 
        of the Board under this subsection, or the 
        Administrator when the Administrator decides that an 
        order of the Board will have a significant adverse 
        effect on carrying out this part, may obtain judicial 
        review of the order under section 46110 of this title. 
        The Administrator shall be made a party to the judicial 
        review proceedings. Findings of fact of the Board are 
        conclusive if supported by substantial evidence.
  (e) Acquittal.--
          (1) The Administrator may not revoke, and the Board 
        may not affirm a revocation of, an airman certificate 
        under subsection (b)(2) of this section on the basis of 
        an activity described in subsection (b)(2)(A) if the 
        holder of the certificate is acquitted of all charges 
        related to a controlled substance in an indictment or 
        information arising from the activity.
          (2) If the Administrator has revoked an airman 
        certificate under this section because of an activity 
        described in subsection (b)(2)(A) of this section, the 
        Administrator shall reissue a certificate to the 
        individual if--
                  (A) the individual otherwise satisfies the 
                requirements for a certificate under section 
                44703 of this title; and
                  (B)(i) the individual subsequently is 
                acquitted of all charges related to a 
                controlled substance in an indictment or 
                information arising from the activity; or
                  (ii) the conviction on which a revocation 
                under subsection (b)(1) of this section is 
                based is reversed.
  (f) Waivers.--The Administrator may waive the requirement of 
subsection (b) of this section that an airman certificate of an 
individual be revoked if--
          (1) a law enforcement official of the United States 
        Government or of a State requests a waiver; and
          (2) the Administrator decides that the waiver will 
        facilitate law enforcement efforts.
  (g) Revocation for Dealing in Counterfeit Parts.--The 
Administrator shall revoke a certificate issued to anyone 
convicted of a violation of any Federal or State law relating 
to the installation, production, repair, or sale of a 
counterfeit or falsely-represented aviation part or material.

Sec.   44711. Prohibitions and exemption

  (a) Prohibitions.--A person may not--
          (1) operate a civil aircraft in air commerce without 
        an airworthiness certificate in effect or in violation 
        of a term of the certificate;
          (2) serve in any capacity as an airman with respect 
        to a civil aircraft, aircraft engine, propeller, or 
        appliance used, or intended for use, in air commerce--
                  (A) without an airman certificate authorizing 
                the airman to serve in the capacity for which 
                the certificate was issued; or
                  (B) in violation of a term of the certificate 
                or a regulation prescribed or order issued 
                under section 44701(a) or (b) or any of 
                sections 44702-44716 of this title;
          (3) employ for service related to civil aircraft used 
        in air commerce an airman who does not have an airman 
        certificate authorizing the airman to serve in the 
        capacity for which the airman is employed;
          (4) operate as an air carrier without an air carrier 
        operating certificate or in violation of a term of the 
        certificate;
          (5) operate aircraft in air commerce in violation of 
        a regulation prescribed or certificate issued under 
        section 44701(a) or (b) or any of sections 44702-44716 
        of this title;
          (6) operate a seaplane or other aircraft of United 
        States registry on the high seas in violation of a 
        regulation under section 3 of the International 
        Navigational Rules Act of 1977 (33 U.S.C. 1602);
          (7) violate a term of an air agency or production 
        certificate or a regulation prescribed or order issued 
        under section 44701(a) or (b) or any of sections 44702-
        44716 of this title related to the holder of the 
        certificate;
          (8) operate an airport without an airport operating 
        certificate required under section 44706 of this title 
        or in violation of a term of the certificate; or
          (9) manufacture, deliver, sell, or offer for sale any 
        aviation fuel or additive in violation of a regulation 
        prescribed under section 44714 of this title.
  (b) Exemption.--On terms the Administrator of the Federal 
Aviation Administration prescribes as being in the public 
interest, the Administrator may exempt a foreign aircraft and 
airmen serving on the aircraft from subsection (a) of this 
section. However, an exemption from observing air traffic 
regulations may not be granted.
  (c) Prohibition on Employment of Convicted Counterfeit Part 
Dealers.--No person subject to this chapter may employ anyone 
to perform a function related to the procurement, sale, 
production, or repair of a part or material, or the 
installation of a part into a civil aircraft, who has been 
convicted of a violation of any Federal or State law relating 
to the installation, production, repair, or sale of a 
counterfeit or falsely-represented aviation part or material.

Sec.   44712. Emergency locator transmitters

  (a) Installation.--An emergency locator transmitter must be 
installed on a fixed-wing powered civil aircraft for use in air 
commerce.
  [(b) Nonapplication.--Subsection (a) of this section does not 
apply to--
          [(1) turbojet-powered aircraft;
          [(2) aircraft when used in scheduled flights by 
        scheduled air carriers holding certificates issued by 
        the Secretary of Transportation under subpart II of 
        this part;
          [(3) aircraft when used in training operations 
        conducted entirely within a 50 mile radius of the 
        airport from which the training operations begin;
          [(4) aircraft when used in flight operations related 
        to design and testing, the manufacture, preparation, 
        and delivery of the aircraft, or the aerial application 
        of a substance for an agricultural purpose;
          [(5) aircraft holding certificates from the 
        Administrator of the Federal Aviation Administration 
        for research and development;
          [(6) aircraft when used for showing compliance with 
        regulations, crew training, exhibition, air racing, or 
        market surveys; and
          [(7) aircraft equipped to carry only one individual.]
  (b) Nonapplication.--Subsection (a) does not apply to 
aircraft when used in--
          (1) flight operations related to the design and 
        testing, manufacture, preparation, and delivery of 
        aircraft; or
          (2) the aerial application of a substance for an 
        agricultural purpose.
  (c) Removal.--The Administrator shall prescribe regulations 
specifying the conditions under which an aircraft subject to 
subsection (a) of this section may operate when its emergency 
locator transmitter has been removed for inspection, repair, 
alteration, or replacement.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                          SUBPART III. SAFETY

                         CHAPTER 449. SECURITY

                       SUBCHAPTER I. REQUIREMENTS

Sec.   44903. Air transportation security

  (a) Definition.--In this section, ``law enforcement 
personnel'' means individuals--
          (1) authorized to carry and use firearms;
          (2) vested with the degree of the police power of 
        arrest the Administrator of the Federal Aviation 
        Administration considers necessary to carry out this 
        section; and
          (3) identifiable by appropriate indicia of authority.
  (b) Protection Against Violence and Piracy.--The 
Administrator shall prescribe regulations to protect passengers 
and property on an aircraft operating in air transportation or 
intrastate air transportation against an act of criminal 
violence or aircraft piracy. When prescribing a regulation 
under this subsection, the Administrator shall--
          (1) consult with the Secretary of Transportation, the 
        Attorney General, the heads of other departments, 
        agencies, and instrumentalities of the United States 
        Government, and State and local authorities;
          (2) consider whether a proposed regulation is 
        consistent with--
                  (A) protecting passengers; and
                  (B) the public interest in promoting air 
                transportation and intrastate air 
                transportation;
          (3) to the maximum extent practicable, require a 
        uniform procedure for searching and detaining 
        passengers and property to ensure--
                  (A) their safety; and
                  (B) courteous and efficient treatment by an 
                air carrier, an agent or employee of an air 
                carrier, and Government, State, and local law 
                enforcement personnel carrying out this 
                section; and
          (4) consider the extent to which a proposed 
        regulation will carry out this section.
  (c) Security Programs.--
          (1) The Administrator shall prescribe regulations 
        under subsection (b) of this section that require each 
        operator of an airport regularly serving an air carrier 
        holding a certificate issued by the Secretary of 
        Transportation to establish an air transportation 
        security program that provides a law enforcement 
        presence and capability at each of those airports that 
        is adequate to ensure the safety of passengers. The 
        regulations shall authorize the operator to use the 
        services of qualified State, local, and private law 
        enforcement personnel. When the Administrator decides, 
        after being notified by an operator in the form the 
        Administrator prescribes, that not enough qualified 
        State, local, and private law enforcement personnel are 
        available to carry out subsection (b), the 
        Administrator may authorize the operator to use, on a 
        reimbursable basis, personnel employed by the 
        Administrator, or by another department, agency, or 
        instrumentality of the Government with the consent of 
        the head of the department, agency, or instrumentality, 
        to supplement State, local, and private law enforcement 
        personnel. When deciding whether additional personnel 
        are needed, the Administrator shall consider the number 
        of passengers boarded at the airport, the extent of 
        anticipated risk of criminal violence or aircraft 
        piracy at the airport or to the air carrier aircraft 
        operations at the airport, and the availability of 
        qualified State or local law enforcement personnel at 
        the airport.
          (2) (A) The Administrator may approve a security 
        program of an airport operator, or an amendment in an 
        existing program, that incorporates a security program 
        of an airport tenant (except an air carrier separately 
        complying with part 108 or 129 of title 14, Code of 
        Federal Regulations) having access to a secured area of 
        the airport, if the program or amendment incorporates--
                  (i) the measures the tenant will use, within 
                the tenant's leased areas or areas designated 
                for the tenant's exclusive use under an 
                agreement with the airport operator, to carry 
                out the security requirements imposed by the 
                Administrator on the airport operator under the 
                access control system requirements of section 
                107.14 of title 14, Code of Federal 
                Regulations, or under other requirements of 
                part 107 of title 14; and
                  (ii) the methods the airport operator will 
                use to monitor and audit the tenant's 
                compliance with the security requirements and 
                provides that the tenant will be required to 
                pay monetary penalties to the airport operator 
                if the tenant fails to carry out a security 
                requirement under a contractual provision or 
                requirement imposed by the airport operator.
          (B) If the Administrator approves a program or 
        amendment described in subparagraph (A) of this 
        paragraph, the airport operator may not be found to be 
        in violation of a requirement of this subsection or 
        subsection (b) of this section when the airport 
        operator demonstrates that the tenant or an employee, 
        permittee, or invitee of the tenant is responsible for 
        the violation and that the airport operator has 
        complied with all measures in its security program for 
        securing compliance with its security program by the 
        tenant.
  (d) Authorizing Individuals to Carry Firearms and Make 
Arrests.--With the approval of the Attorney General and the 
Secretary of State, the Secretary of Transportation may 
authorize an individual who carries out air transportation 
security duties--
          (1) to carry firearms; and
          (2) to make arrests without warrant for an offense 
        against the United States committed in the presence of 
        the individual or for a felony under the laws of the 
        United States, if the individual reasonably believes 
        the individual to be arrested has committed or is 
        committing a felony.
  (e) Exclusive Responsibility Over Passenger Safety.--The 
Administrator has the exclusive responsibility to direct law 
enforcement activity related to the safety of passengers on an 
aircraft involved in an offense under section 46502 of this 
title from the moment all external doors of the aircraft are 
closed following boarding until those doors are opened to allow 
passengers to leave the aircraft. When requested by the 
Administrator, other departments, agencies, and 
instrumentalities of the Government shall provide assistance 
necessary to carry out this subsection.
  (f) Government and Industry Consortia.--The Administrator may 
establish at airports such consortia of government and aviation 
industry representatives as the Administrator may designate to 
provide advice on matters related to aviation security and 
safety. Such consortia shall not be considered federal advisory 
committees for purposes of the Federal Advisory Committee Act 
(5 U.S.C. App.).

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                          SUBPART III. SAFETY

                         CHAPTER 449. SECURITY

                       SUBCHAPTER I. REQUIREMENTS

Sec.   44909. Passenger manifests

  (a) Air Carrier Requirements.--
          (1) Not later than March 16, 1991, the Secretary of 
        Transportation shall require each air carrier to 
        provide a passenger manifest for a flight to an 
        appropriate representative of the Secretary of State--
                  (A) not later than one hour after that 
                carrier is notified of an aviation disaster 
                outside the United States involving that 
                flight; or
                  (B) if it is not technologically feasible or 
                reasonable to comply with clause (A) of this 
                paragraph, then as expeditiously as possible, 
                but not later than 3 hours after the carrier is 
                so notified.
          (2) The passenger manifest [shall] should include the 
        following information:
                  (A) the full name of each passenger.
                  (B) the passport number of each passenger, if 
                required for travel.
                  (C) the name and telephone number of a 
                contact for each passenger.
          (3) In carrying out this subsection, the Secretary of 
        Transportation shall consider the necessity and 
        feasibility of requiring air carriers to collect 
        passenger manifest information as a condition for 
        passengers boarding a flight of the carrier.
  (b) Foreign Air Carrier Requirements.--The Secretary of 
Transportation shall consider imposing a requirement on foreign 
air carriers comparable to that imposed on air carriers under 
subsection (a)(1) and (2) of this section.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                          SUBPART III. SAFETY

                         CHAPTER 449. SECURITY

              SUBCHAPTER II. ADMINISTRATION AND PERSONNEL

Sec.  44936. Employment investigations and restrictions

  (a) Employment Investigation Requirement.--
          (1) (A) The Administrator of the Federal Aviation 
        Administration shall require by regulation that an 
        employment investigation, including a criminal history 
        record check, shall be conducted, as the Administrator 
        decides is necessary to ensure air transportation 
        security, of each individual employed in, or applying 
        for, a position in which the individual has unescorted 
        access, or may permit other individuals to have 
        unescorted access, to--
                  (i) aircraft of an air carrier or foreign air 
                carrier; or
                  (ii) a secured area of an airport in the 
                United States the Administrator designates that 
                serves an air carrier or foreign air carrier.
          (B) The Administrator shall require by regulation 
        that an employment investigation (including a criminal 
        history record check in any case described in 
        [subparagraph (C))] subparagraph (C), or in the case of 
        passenger, baggage, or property screening at airports, 
        the Administrator decides it is necessary to ensure air 
        transportation security) 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.
          (2) An air carrier, foreign air carrier, or airport 
        operator that employs, or authorizes or makes a 
        contract for the services of, an individual in a 
        position described in paragraph (1) of this subsection 
        shall ensure that the investigation the Administrator 
        requires is conducted.
          (3) The Administrator shall provide for the periodic 
        audit of the effectiveness of criminal history record 
        checks conducted under paragraph (1) of this 
        subsection.
  (b) Prohibited Employment.--
          (1) Except as provided in paragraph (3) of this 
        subsection, an air carrier, foreign air carrier, or 
        airport operator may not employ, or authorize or make a 
        contract for the services of, an individual in a 
        position described in subsection (a)(1) of this section 
        if--
                  (A) the investigation of the individual 
                required under this section has not been 
                conducted; or
                  (B) the results of that investigation 
                establish that, in the 10-year period ending on 
                the date of the investigation, the individual 
                was convicted of--
                          (i) a crime referred to in section 
                        46306, 46308, 46312, 46314, or 46315 or 
                        chapter 465 of this title or section 32 
                        of title 18;
                          (ii) murder;
                          (iii) assault with intent to murder;
                          (iv) espionage;
                          (v) sedition;
                          (vi) treason;
                          (vii) rape;
                          (viii) kidnapping;
                          (ix) unlawful possession, sale, 
                        distribution, or manufacture of an 
                        explosive or weapon;
                          (x) extortion;
                          (xi) armed robbery;
                          (xii) distribution of, or intent to 
                        distribute, a controlled substance; or
                          (xiii) conspiracy to commit any of 
                        the acts referred to in clauses (i)-
                        (xii) of this paragraph.
          (2) The Administrator may specify other factors that 
        are sufficient to prohibit the employment of an 
        individual in a position described in subsection (a)(1) 
        of this section.
          (3) An air carrier, foreign air carrier, or airport 
        operator may employ, or authorize or contract for the 
        services of, an individual in a position described in 
        subsection (a)(1) of this section without carrying out 
        the investigation required under this section, if the 
        Administrator approves a plan to employ the individual 
        that provides alternate security arrangements.
  (c) Fingerprinting and Record Check Information.--
          (1) If the Administrator requires an identification 
        and criminal history record check, to be conducted by 
        the Attorney General, as part of an investigation under 
        this section, the Administrator shall designate an 
        individual to obtain fingerprints and submit those 
        fingerprints to the Attorney General. The Attorney 
        General may make the results of a check available to an 
        individual the Administrator designates. Before 
        designating an individual to obtain and submit 
        fingerprints or receive results of a check, the 
        Administrator shall consult with the Attorney General.
          (2) The Administrator shall prescribe regulations 
        on--
                  (A) procedures for taking fingerprints; and
                  (B) requirements for using information 
                received from the Attorney General under 
                paragraph (1) of this subsection--
                          (i) to limit the dissemination of the 
                        information; and
                          (ii) to ensure that the information 
                        is used only to carry out this section.
          (3) If an identification and criminal history record 
        check is conducted as part of an investigation of an 
        individual under this section, the individual--
                  (A) shall receive a copy of any record 
                received from the Attorney General; and
                  (B) may complete and correct the information 
                contained in the check before a final 
                employment decision is made based on the check.
  (d) Fees and Charges.--The Administrator and the Attorney 
General shall establish reasonable fees and charges to pay 
expenses incurred in carrying out this section. The employer of 
the individual being investigated shall pay the costs of a 
record check of the individual. Money collected under this 
section shall be credited to the account in the Treasury from 
which the expenses were incurred and are available to the 
Administrator and the Attorney General for those expenses.
  (e) When Investigation or Record Check Not Required.--This 
section does not require an investigation or record check when 
the investigation or record check is prohibited by a law of a 
foreign country.
  (f) Records of Employment of Pilot Applicants.--
          (1) In general.--Subject to paragraph (14), before 
        allowing an individual to begin service 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 as a pilot of a civil or public 
                aircraft 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] individual's performance 
                        as a pilot 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)(8) of this 
                title, 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 and air carriers shall maintain pilot 
        records described in paragraphs (1)(A) and (1)(B) 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 
        subsection shall furnish a copy of all of such 
        requested records maintained by the person not later 
        than 30 days after receiving the request.
          (6) Right to receive notice and copy of any record 
        furnished.--A person who receives a request for records 
        under paragraph (1) shall provide to the individual who 
        is the subject of the records--
                  (A) 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 who is or has been employed by such 
        carrier, make available, within a reasonable time, but 
        not later than 30 days after the date 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).
          (14) Special rules with respect to certain pilots.--
                  (A) Pilots of certain small aircraft.--
                Notwithstanding paragraph (1), an air carrier, 
                before receiving information requested about an 
                individual under paragraph (1), may allow the 
                individual to begin service for a period not to 
                exceed 90 days as a pilot of an aircraft with a 
                maximum payload capacity (as defined in section 
                119.3 of title 14, Code of Federal Regulations) 
                of 7,500 pounds or less, or a helicopter, on a 
                flight that is not a scheduled operation (as 
                defined in such section). Before the end of the 
                90-day period, the air carrier shall obtain and 
                evaluate such information. The contract between 
                the carrier and the individual shall contain a 
                term that provides that the continuation of the 
                individual's employment, after the last 90-day 
                period, depends on a satisfactory evaluation.
                  (B) Good faith exception.--Notwithstanding 
                paragraph (1), an air carrier, without 
                obtaining information about an individual under 
                paragraph (1)(B) from an air carrier or other 
                person that no longer exists, or from a foreign 
                government or entity that employed the 
                individual, may allow the individual to begin 
                service as a pilot if the air carrier required 
                to request the information has made a 
                documented good faith attempt to obtain such 
                information.
  (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.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                          SUBPART III. SAFETY

                           CHAPTER 453. FEES

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.]
          (1) Air traffic control and related services provided 
        to aircraft that neither take off from, nor land in, 
        the United States, other than military and civilian 
        aircraft of the United States Government or of a 
        foreign government, except that such fees shall not be 
        imposed on overflights that take off and land in a 
        country contiguous to the United States if--
                  (A) both the origin and destination of such 
                flights are within that other country;
                  (B) that country exempts similar categories 
                of flights operated by citizens of the United 
                States from such fees; and
                  (C) that country exchanges responsibility for 
                air traffic control services with the United 
                States.
          (2) Services (other than air traffic control 
        services) provided to a foreign [government.] 
        government or to any entity obtaining services outside 
        the United States.
  (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.] rendered, 
                including value to the recipient and both 
                direct and indirect costs of overflight-related 
                services, as determined by the Administrator, 
                using generally accepted accounting principles 
                and internationally accepted principles of 
                setting fees for overflight-related services. 
                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.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                    PART A. AIR COMMERCE AND SAFETY

                 SUBPART IV. ENFORCEMENT AND PENALTIES

                         CHAPTER 463. PENALTIES

Sec.  46301. Civil penalties

  (a) General penalty.--
          (1) A person is liable to the United States 
        Government for a civil penalty of not more than $1,000 
        for violating--
                   (A) chapter 401 (except sections 40103(a) 
                and (d), 40105, 40116, and 40117), chapter 411, 
                chapter 413 (except sections 41307 and 
                41310(b)-(f)), chapter 415 (except sections 
                41502, 41505, and 41507-41509), chapter 417 
                (except sections 41703, 41704, 41710, 41713, 
                and 41714), chapter 419, [subchapter II of 
                chapter 421,] subchapter II or III of chapter 
                421, chapter 441 (except section 44109), 
                44502(b) or (c), chapter 447 (except sections 
                44717 and 44719-44723), chapter 449 (except 
                sections 44902, 44903(d), 44904, 44907(a)-
                (d)(1)(A) and (d)(1)(C)-(f), and 44908), or 
                section [46302, 46303, or] 47107(b) (including 
                any assurance made under such section) of this 
                title;
                   (B) a regulation prescribed or order issued 
                under any provision to which clause (A) of this 
                paragraph applies;
                   (C) any term of a certificate or permit 
                issued under section 41102, 41103, or 41302 of 
                this title; or
                   (D) a regulation of the United States Postal 
                Service under this part .
          (2) A person operating an aircraft for the 
        transportation of passengers or property for 
        compensation (except an airman serving as an airman) is 
        liable to the Government for a civil penalty of not 
        more than $10,000 for violating--
                   (A) chapter 401 (except sections 40103(a) 
                and (d), 40105, 40106(b), 40116, and 40117), 
                section 44502(b) or (c), chapter 447 (except 
                sections 44717-44723), or chapter 449 (except 
                sections 44902, 44903(d), 44904, and 44907-
                44909) of this title; or
                   (B) a regulation prescribed or order issued 
                under any provision to which clause (A) of this 
                paragraph applies.
          (3) A civil penalty of not more than $10,000 may be 
        imposed for each violation under paragraph (1) of this 
        subsection related to--
                   (A) the transportation of hazardous 
                material; or
                   (B) the registration or recordation under 
                chapter 441 of this title of an aircraft not 
                used to provide air transportation.
          (4) A separate violation occurs under this subsection 
        for each day the violation (other than a violation of 
        section 41715) continues or, if applicable, for each 
        flight involving the violation (other than a violation 
        of section 41715).
          (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.
          (6) Notwithstanding paragraph (1), the maximum civil 
        penalty for violating section 41715 shall be $5,000 
        instead of $1,000.
  (b) Smoke alarm device penalty.--
          (1) A passenger may not tamper with, disable, or 
        destroy a smoke alarm device located in a lavatory on 
        an aircraft providing air transportation or intrastate 
        air transportation.
          (2) An individual violating this subsection is liable 
        to the Government for a civil penalty of not more than 
        $2,000.
  (c) Procedural requirements.--
          (1) The Secretary of Transportation may impose a 
        civil penalty for the following violations only after 
        notice and an opportunity for a hearing:
                   (A) a violation of subsection (b) of this 
                section or chapter 411, chapter 413 (except 
                sections 41307 and 41310(b)-(f)), chapter 415 
                (except sections 41502, 41505, and 41507-
                41509), chapter 417 (except sections 41703, 
                41704, 41710, 41713, and 41714), chapter 419, 
                subchapter II of chapter 421, or section 44909 
                of this title .
                   (B) a violation of a regulation prescribed 
                or order issued under any provision to which 
                clause (A) of this paragraph applies.
                   (C) a violation of any term of a certificate 
                or permit issued under section 41102, 41103, or 
                41302 of this title.
                   (D) a violation under subsection (a)(1) of 
                this section related to the transportation of 
                hazardous material.
          (2) The Secretary shall give written notice of the 
        finding of a violation and the civil penalty under 
        paragraph (1) of this subsection.
  (d) Administrative imposition of penalties.--
          (1) In this subsection--
                   (A) ``flight engineer'' means an individual 
                who holds a flight engineer certificate issued 
                under part 63 of title 14, Code of Federal 
                Regulations.
                   (B) ``mechanic'' means an individual who 
                holds a mechanic certificate issued under part 
                65 of title 14, Code of Federal Regulations.
                   (C) ``pilot'' means an individual who holds 
                a pilot certificate issued under part 61 of 
                title 14, Code of Federal Regulations.
                   (D) ``repairman'' means an individual who 
                holds a repairman certificate issued under part 
                65 of title 14, Code of Federal Regulations.
          (2) The Administrator of the Federal Aviation 
        Administration may impose a civil penalty for a 
        violation of chapter 401 (except sections 40103(a) and 
        (d), 40105, 40106(b), 40116, and 40117), chapter 441 
        (except section 44109), section 44502(b) or (c), 
        chapter 447 (except sections 44717 and 44719-44723), 
        chapter 449 (except sections 44902, 44903(d), 44904, 
        44907(a)-(d)(1)(A) and (d)(1)(C)-(f), 44908, and 
        44909), or section 46302, 46303, or 47107(b) (as 
        further defined by the Secretary under section 47107(l) 
        and including any assurance made under section 
        47107(b)) of this title or a regulation prescribed or 
        order issued under any of those provisions. The 
        Administrator shall give written notice of the finding 
        of a violation and the penalty.
          (3) In a civil action to collect a civil penalty 
        imposed by the Administrator under this subsection, the 
        issues of liability and the amount of the penalty may 
        not be reexamined.
          (4) Notwithstanding paragraph (2) of this subsection, 
        the district courts of the United States have exclusive 
        jurisdiction of a civil action involving a penalty the 
        Administrator initiates if--
                   (A) the amount in controversy is more than 
                $50,000;
                   (B) the action is in rem or another action 
                in rem based on the same violation has been 
                brought;
                   (C) the action involves an aircraft subject 
                to a lien that has been seized by the 
                Government; or
                   (D) another action has been brought for an 
                injunction based on the same violation.
          (5) (A) The Administrator may issue an order imposing 
        a penalty under this subsection against an individual 
        acting as a pilot, flight engineer, mechanic, or 
        repairman only after advising the individual of the 
        charges or any reason the Administrator relied on for 
        the proposed penalty and providing the individual an 
        opportunity to answer the charges and be heard about 
        why the order shall not be issued.
           (B) An individual acting as a pilot, flight 
        engineer, mechanic, or repairman may appeal an order 
        imposing a penalty under this subsection to the 
        National Transportation Safety Board. After notice and 
        an opportunity for a hearing on the record, the Board 
        shall affirm, modify, or reverse the order. The Board 
        may modify a civil penalty imposed to a suspension or 
        revocation of a certificate.
           (C) When conducting a hearing under this paragraph, 
        the Board is not bound by findings of fact of the 
        Administrator but is bound by all validly adopted 
        interpretations of laws and regulations the 
        Administrator carries out and of written agency policy 
        guidance available to the public related to sanctions 
        to be imposed under this section unless the Board finds 
        an interpretation is arbitrary, capricious, or 
        otherwise not according to law.
           (D) When an individual files an appeal with the 
        Board under this paragraph, the order of the 
        Administrator is stayed.
          (6) An individual substantially affected by an order 
        of the Board under paragraph (5) of this subsection, or 
        the Administrator when the Administrator decides that 
        an order of the Board under paragraph (5) will have a 
        significant adverse impact on carrying out this part, 
        may obtain judicial review of the order under section 
        46110 of this title. The Administrator shall be made a 
        party to the judicial review proceedings. Findings of 
        fact of the Board are conclusive if supported by 
        substantial evidence.
          (7) (A) The Administrator may impose a penalty on an 
        [individual] person (except an individual acting as a 
        pilot, flight engineer, mechanic, or repairman) only 
        after notice and an opportunity for a hearing on the 
        record.
           (B) In an appeal from a decision of an 
        administrative law judge as the result of a hearing 
        under subparagraph (A) of this paragraph, the 
        Administrator shall consider only whether--
                   (i) each finding of fact is supported by a 
                preponderance of reliable, probative, and 
                substantial evidence;
                   (ii) each conclusion of law is made 
                according to applicable law, precedent, and 
                public policy; and
                   (iii) the judge committed a prejudicial 
                error that supports the appeal.
           (C) Except for good cause, a civil action involving 
        a penalty under this paragraph may not be initiated 
        later than 2 years after the violation occurs.
           (D) In the case of a violation of section 47107(b) 
        of this title or any assurance made under such 
        section--
                   (i) a civil penalty shall not be assessed 
                against an individual;
                   (ii) a civil penalty may be compromised as 
                provided under subsection (f); and
                   (iii) judicial review of any order assessing 
                a civil penalty may be obtained only pursuant 
                to section 46110 of this title.
          (8) The maximum civil penalty the Administrator or 
        Board may impose under this subsection is $50,000.
          (9) This subsection applies only to a violation 
        occurring after August 25, 1992.
  (e) Penalty considerations..-- In determining the amount of a 
civil penalty under subsection (a)(3) of this section related 
to transportation of hazardous material, the Secretary shall 
consider--
          (1) the nature, circumstances, extent, and gravity of 
        the violation;
          (2) with respect to the violator, the degree of 
        culpability, any history of prior violations, the 
        ability to pay, and any effect on the ability to 
        continue doing business; and
          (3) other matters that justice requires.
  (f) Compromise and setoff.--
          (1) (A) The Secretary may compromise the amount of a 
        civil penalty imposed for violating--
                   (i) chapter 401 (except sections 40103(a) 
                and (d), 40105, 40116, and 40117), chapter 441 
                (except section 44109), section 44502(b) or 
                (c), chapter 447 (except 44717 and 44719-
                44723), or chapter 449 (except sections 44902, 
                44903(d), 44904, 44907(a)-(d)(1)(A) and 
                (d)(1)(C)-(f), 44908, and 44909) of this title; 
                or
                   (ii) a regulation prescribed or order issued 
                under any provision to which clause (i) of this 
                subparagraph applies.
           (B) The Postal Service may compromise the amount of 
        a civil penalty imposed under subsection (a)(1)(D) of 
        this section.
          (2) The Government may deduct the amount of a civil 
        penalty imposed or compromised under this subsection 
        from amounts it owes the person liable for the penalty.
  (g) Judicial review.--An order of the Secretary or the 
Administrator imposing a civil penalty may be reviewed 
judicially only under section 46110 of this title.
  (h) Nonapplication.--
          (1) This section does not apply to the following when 
        performing official duties:
                   (A) a member of the armed forces of the 
                United States.
                   (B) a civilian employee of the Department of 
                Defense subject to the Uniform Code of Military 
                Justice.
          (2) The appropriate military authority is responsible 
        for taking necessary disciplinary action and submitting 
        to the Secretary (or the Administrator with respect to 
        aviation safety duties and powers designated to be 
        carried out by the Administrator) a timely report on 
        action taken.

Sec.  46316. Interference with cabin or flight crew

  (a) In General.--An individual who interferes with the duties 
or responsibilities of the flight crew or cabin crew of a civil 
aircraft, or who poses an imminent threat to the safety of the 
aircraft or other individuals on the aircraft, is liable to the 
United States Government for a civil penalty of not more than 
$10,000, which shall be paid to the Federal Aviation 
Administration and deposited in the account established by 
section 45303(c).
  (b) Compromise and Setoff.--
          (1) The Secretary of Transportation or Administrator 
        may compromise the amount of a civil penalty imposed 
        under subsection (a).
          (2) The Government may deduct the amount of a civil 
        penalty imposed or compromised under this section from 
        amounts it owes the individual liable for the penalty.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                 PART B. AIRPORT DEVELOPMENT AND NOISE

                    CHAPTER 471. AIRPORT DEVELOPMENT

                   SUBCHAPTER I. AIRPORT IMPROVEMENT

Sec.  47102. Definitions

  In this subchapter --
          (1) ``air carrier airport'' means a public airport 
        regularly served by--
                   (A) an air carrier certificated by the 
                Secretary of Transportation under section 41102 
                of this title (except a charter air carrier); 
                or
                   (B) at least one air carrier--
                           (i) operating under an exemption 
                        from section 41101(a)(1) of this title 
                        that the Secretary grants; and
                           (ii) having at least 2,500 passenger 
                        boardings at the airport during the 
                        prior calendar year.
          (2) ``airport''--
                   (A) means--
                           (i) an area of land or water used or 
                        intended to be used for the landing and 
                        taking off of aircraft;
                           (ii) an appurtenant area used or 
                        intended to be used for airport 
                        buildings or other airport facilities 
                        or rights of way; and
                           (iii) airport buildings and 
                        facilities located in any of those 
                        areas; and
                   (B) includes a heliport.
          (3) ``airport development'' means the following 
        activities, if undertaken by the sponsor, owner, or 
        operator of a public-use airport:
                   (A) constructing, repairing, or improving a 
                public-use airport, including--
                           (i) removing, lowering, relocating, 
                        marking, and lighting an airport 
                        hazard; and
                           (ii) preparing a plan or 
                        specification, including carrying out a 
                        field investigation.
                   (B) acquiring for, or installing at, a 
                public-use airport--
                           (i) a navigation aid or another aid 
                        (including a precision approach system) 
                        used by aircraft for landing at or 
                        taking off from the airport, including 
                        preparing the site as required by the 
                        acquisition or installation;
                           (ii) safety or security equipment, 
                        including explosive detection devices 
                        and universal access systems, the 
                        Secretary requires by regulation for, 
                        or approves as contributing 
                        significantly to, the safety or 
                        security of individuals and property at 
                        the airport;
                           (iii) equipment to remove snow, to 
                        measure runway surface friction, or for 
                        aviation-related weather reporting;
                           (iv) firefighting and rescue 
                        equipment at an airport that serves 
                        scheduled passenger operations of air 
                        carrier aircraft designed for more than 
                        20 passenger seats;
                           (v) aircraft deicing equipment and 
                        structures (except aircraft deicing 
                        fluids and storage facilities for the 
                        equipment and fluids); and
                           (vi) interactive training systems.
                   (C) acquiring an interest in land or 
                airspace, including land for future airport 
                development, that is needed--
                           (i) to carry out airport development 
                        described in subclause (A) or (B) of 
                        this clause; or
                           (ii) to remove or mitigate an 
                        existing airport hazard or prevent or 
                        limit the creation of a new airport 
                        hazard.
                   (D) acquiring land for, or constructing, a 
                burn area training structure on or off the 
                airport to provide live fire drill training for 
                aircraft rescue and firefighting personnel 
                required to receive the training under 
                regulations the Secretary prescribes, including 
                basic equipment and minimum structures to 
                support the training under standards the 
                Administrator of the Federal Aviation 
                Administration prescribes.
                   (E) relocating after December 31, 1991, an 
                air traffic control tower and any navigational 
                aid (including radar) if the relocation is 
                necessary to carry out a project approved by 
                the Secretary under this subchapter or under 
                section 40117.
                   (F) constructing, reconstructing, repairing, 
                or improving an airport, or purchasing capital 
                equipment for an airport, if necessary for 
                compliance with the responsibilities of the 
                operator or owner of the airport under the 
                Americans with Disabilities Act of 1990 (42 
                U.S.C. 12101 et seq.), the Clean Air Act (42 
                U.S.C. 7401 et seq.), and the Federal Water 
                Pollution Control Act (33 U.S.C. 1251 et seq.), 
                except constructing or purchasing capital 
                equipment that would benefit primarily a 
                revenue-producing area of the airport used by a 
                nonaeronautical business.
                   (G) acquiring land for, or work necessary to 
                construct, a pad suitable for deicing aircraft 
                before takeoff at a commercial service airport, 
                including constructing or reconstructing paved 
                areas, drainage collection structures, 
                treatment and discharge systems, appropriate 
                lighting, paved access for deicing vehicles and 
                aircraft, but not including acquiring aircraft 
                deicing fluids or constructing or 
                reconstructing storage facilities for aircraft 
                deicing equipment or fluids.
          (4) ``airport hazard'' means a structure or object of 
        natural growth located on or near a public-use airport, 
        or a use of land near the airport, that obstructs or 
        otherwise is hazardous to the landing or taking off of 
        aircraft at or from the airport.
          (5) ``airport planning'' means planning as defined by 
        regulations the Secretary prescribes and includes 
        integrated airport system planning.
          (6) ``amount made available under section 48103 of 
        this title'' means the amount authorized for grants 
        under section 48103 of this title as reduced by any law 
        enacted after September 3, 1982.
          (7) ``commercial service airport'' means a public 
        airport in a State that the Secretary determines has at 
        least 2,500 passenger boardings each year and is 
        receiving scheduled passenger aircraft service.
          (8) ``integrated airport system planning'' means 
        developing for planning purposes information and 
        guidance to decide the extent, kind, location, and 
        timing of airport development needed in a specific area 
        to establish a viable, balanced, and integrated system 
        of public-use airports, including--
                   (A) identifying system needs;
                   (B) developing an estimate of systemwide 
                development costs;
                   (C) conducting studies, surveys, and other 
                planning actions, including those related to 
                airport access, needed to decide which 
                aeronautical needs should be met by a system of 
                airports; and
                   (D) standards prescribed by a State, except 
                standards for safety of approaches, for airport 
                development at nonprimary public-use airports.
          (9) ``landed weight'' means the weight of aircraft 
        transporting only cargo in intrastate, interstate, and 
        foreign air transportation, as the Secretary determines 
        under regulations the Secretary prescribes.
          (10) ``passenger boardings''--
                   (A) means revenue passenger boardings on an 
                aircraft in service in air commerce as the 
                Secretary determines under regulations the 
                Secretary prescribes; and
                   (B) includes passengers who continue on an 
                aircraft in international flight that stops at 
                an airport in the 48 contiguous States, Alaska, 
                or Hawaii for a nontraffic purpose.
          (11) ``primary airport'' means a commercial service 
        airport the Secretary determines to have more than 
        10,000 passenger boardings each year.
          (12) ``project'' means a project, separate projects 
        included in one project grant application, or all 
        projects to be undertaken at an airport in a fiscal 
        year, to achieve airport development or airport 
        planning.
          (13) ``project cost'' means a cost involved in 
        carrying out a project.
          (14) ``project grant'' means a grant of money the 
        Secretary makes to a sponsor to carry out at least one 
        project.
          (15) ``public agency'' means--
                   (A) a State or political subdivision of a 
                State;
                   (B) a tax-supported organization; or
                   (C) an Indian tribe or pueblo.
          (16) ``public airport'' means an airport used or 
        intended to be used for public purposes--
                   (A) that is under the control of a public 
                agency; and
                   (B) of which the area used or intended to be 
                used for the landing, taking off, or surface 
                maneuvering of aircraft is publicly owned.
          (17) ``public-use airport'' means--
                   (A) a public airport; or
                   (B) a privately-owned airport used or 
                intended to be used for public purposes that 
                is--
                           (i) a reliever airport; [or]
                          (ii) a privately-owned airport that, 
                        as a reliever airport, received Federal 
                        aid for airport development prior to 
                        October 9, 1996, but only if the 
                        Administrator issues revised 
                        administrative guidance after July 1, 
                        1998, for the designation of reliever 
                        airports; or.
                           [(ii)] (iii) determined by the 
                        Secretary to have at least 2,500 
                        passenger boardings each year and to 
                        receive scheduled passenger aircraft 
                        service.
          (18) ``reliever airport'' means an airport the 
        Secretary designates to relieve congestion at a 
        commercial service airport and to provide more general 
        aviation access to the overall community.
          (19) ``sponsor'' means--
                   (A) a public agency that submits to the 
                Secretary under this subchapter an application 
                for financial assistance; and
                   (B) a private owner of a public-use airport 
                that submits to the Secretary under this 
                subchapter an application for financial 
                assistance for the airport.
          (20) ``State'' means a State of the United States, 
        the District of Columbia, Puerto Rico, the Virgin 
        Islands, American Samoa, the Northern Mariana Islands, 
        the Trust Territory of the Pacific Islands, and Guam.

Sec.  47104. Project grant authority

  (a) General authority.--To maintain a safe and efficient 
nationwide system of public-use airports that meets the present 
and future needs of civil aeronautics, the Secretary of 
Transportation may make project grants under this subchapter 
from the Airport and Airway Trust Fund.
  (b) Incurring obligations.--The Secretary may incur 
obligations to make grants from amounts made available under 
section 48103 of this title as soon as the amounts are 
apportioned under section 47114(c) and (d)(2) of this title.
  (c) Expiration of authority.--After September 30, [1998,] 
2002, the Secretary may not incur obligations under subsection 
(b) of this section, except for obligations of amounts--
          (1) remaining available after that date under section 
        47117(b) of this title; or
          (2) recovered by the United States Government from 
        grants made under this chapter if the amounts are 
        obligated only for increases under section 47108(b)(2) 
        and (3) of this title in the maximum amount of 
        obligations of the Government for any other grant made 
        under this title.

Sec.  47108. Project grant agreements

  (a) Offer and acceptance.--On approving a project grant 
application under this subchapter, the Secretary of 
Transportation shall offer the sponsor a grant to pay the 
United States Government's share of the project costs allowable 
under section 47110 of this title. The Secretary may impose 
terms on the offer that the Secretary considers necessary to 
carry out this subchapter and regulations prescribed under this 
subchapter. An offer shall state the obligations to be assumed 
by the sponsor and the maximum amount the Government will pay 
for the project from the amounts authorized under chapter 481 
of this title (except sections 48102(e), 48106, 48107, and 
48110). At the request of the sponsor, an offer of a grant for 
a project that will not be completed in one fiscal year shall 
provide for the obligation of amounts apportioned or to be 
apportioned to a sponsor under section 47114(c) of this title 
for the fiscal years necessary to pay the Government's share of 
the cost of the project. An offer that is accepted in writing 
by the sponsor is an agreement binding on the Government and 
the sponsor. The Government may pay or be obligated to pay a 
project cost only after a grant agreement for the project is 
signed.
  (b) Increasing Government's share under this subchapter or 
chapter 475.--
          (1) When an offer has been accepted in writing, the 
        amount stated in the offer as the maximum amount the 
        Government will pay may be increased only as provided 
        in paragraphs (2) and (3) of this subsection.
          (2) (A) For a project receiving assistance under a 
        grant approved under the Airport and Airway Improvement 
        Act of 1982 before October 1, 1987, the amount may be 
        increased by not more than--
                   (i) 10 percent for an airport development 
                project, except a project for acquiring an 
                interest in land; and
                   (ii) 50 percent of the total increase in 
                allowable project costs attributable to 
                acquiring an interest in land, based on current 
                creditable appraisals.
           (B) An increase under subparagraph (A) of this 
        paragraph may be paid only from amounts the Government 
        recovers from other grants made under this subchapter.
          (3) For a project receiving assistance under a grant 
        approved under the Act, this subchapter, or chapter 475 
        of this title after September 30, 1987, the amount may 
        be increased--
                   (A) for an airport development project, by 
                not more than 15 percent; and
                   (B) for a grant after September 30, 1992, to 
                acquire an interest in land for an airport 
                (except a primary airport), by not more than 
                the greater of the following, based on current 
                creditable appraisals or a court award in a 
                condemnation proceeding:
                           (i) 15 percent; or
                           (ii) 25 percent of the total 
                        increase in allowable project costs 
                        attributable to acquiring an interest 
                        in land.
  (c) Increasing Government's share under Airport and Airway 
Development Act of 1970.--For a project receiving assistance 
under a grant made under the Airport and Airway Development Act 
of 1970, the maximum amount the Government will pay may be 
increased by not more than 10 percent. An increase under this 
subsection may be paid only from amounts the Government 
recovers from other grants made under the Act.
  (d) Changing workscope.--With the consent of the sponsor, the 
Secretary may amend a grant agreement made under this 
subchapter to change the workscope of a project financed under 
the grant if the amendment does not result in an increase in 
the maximum amount the Government may pay under subsection (b) 
of this section.
  (e) Change in Airport Status.--If the status of a primary 
airport changes to a non-primary airport at a time when a 
development project under a multiyear agreement under 
subsection (a) is not yet completed, the project shall remain 
eligible for funding from discretionary funds under section 
47115 of this title at the funding level and under the terms 
provided by the agreement, subject to the availability of 
funds.

Sec.  47109. United States Government's share of project costs

  (a) General.--Except as provided in subsection (b) of this 
section, the United States Government's share of allowable 
project costs is--
          (1) 75 percent for a project at a primary airport 
        having at least .25 percent of the total number of 
        passenger boardings each year at all commercial service 
        airports;
          (2) not more than 90 percent for a project at any 
        other airport; and
          (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.
  (b) Increased Government share.--If, under subsection (a) of 
this section, the Government's share of allowable costs of a 
project in a State containing unappropriated and unreserved 
public lands and nontaxable Indian lands (individual and 
tribal) of more than 5 percent of the total area of all lands 
in the State, is less than the share applied on June 30, 1975, 
under section 17(b) of the Airport and Airway Development Act 
of 1970, the Government's share under subsection (a) of this 
section shall be increased by the lesser of--
          (1) 25 percent;
          (2) one-half of the percentage that the area of 
        unappropriated and unreserved public lands and 
        nontaxable Indian lands in the State is of the total 
        area of the State; or
          (3) the percentage necessary to increase the 
        Government's share to the percentage that applied on 
        June 30, 1975, under section 17(b) of the Act.
  (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.  47110. Allowable project costs

  (a) General authority.--Except as provided in section 47111 
of this title, the United States Government may pay or be 
obligated to pay, from amounts appropriated to carry out this 
subchapter, a cost incurred in carrying out a project under 
this subchapter only if the Secretary of Transportation decides 
the cost is allowable.
  (b) Allowable cost standards.--A project cost is allowable--
          (1) if the cost necessarily is incurred in carrying 
        out the project in compliance with the grant agreement 
        made for the project under this subchapter, including 
        any cost a sponsor incurs related to an audit the 
        Secretary requires under section 47121(b) or (d) of 
        this title;
          (2)(A) if the cost is incurred after the grant 
        agreement is executed and is for airport development or 
        airport planning carried out after the grant agreement 
        is executed;
          (B) if the cost is incurred after June 1, 1989, by 
        the airport operator (regardless of when the grant 
        agreement is executed) as part of a Government-approved 
        noise compatability program (including project 
        formulation costs) and is consistent with all 
        applicable statutory and administrative requirements; 
        or
          (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;
          (3) to the extent the cost is reasonable in amount;
          (4) if the cost is not incurred in a project for 
        airport development or airport planning for which other 
        Government assistance has been granted; and
          (5) if the total costs allowed for the project are 
        not more than the amount stated in the grant agreement 
        as the maximum the Government will pay (except as 
        provided in section 47108(b) of this title).
  (c) Certain prior costs as allowable costs.--The Secretary 
may decide that a project cost under subsection (b)(2)(A) of 
this section incurred after May 13, 1946, and before the date 
the grant agreement is executed is allowable if it is--
          (1) necessarily incurred in formulating an airport 
        development project, including costs incurred for field 
        surveys, plans and specifications, property interests 
        in land or airspace, and administration or other 
        incidental items that would not have been incurred 
        except for the project; or
          (2) necessarily and directly incurred in developing 
        the work scope of an airport planning project.
  (d) Terminal development costs.--
          (1) The Secretary may decide that the cost of 
        terminal development (including multi-modal terminal 
        development) in a nonrevenue-producing public-use area 
        of a commercial service airport is allowable for an 
        airport development project at the airport--
                  (A) if the sponsor certifies that the 
                airport, on the date the grant application is 
                submitted to the Secretary, has--
                          (i) all the safety equipment required 
                        for certification of the airport under 
                        section 44706 of this title;
                          (ii) all the security equipment 
                        required by regulation; and
                          (iii) provided for access, to the 
                        area of the airport for passengers for 
                        boarding or exiting aircraft, to those 
                        passengers boarding or exiting 
                        aircraft, except air carrier aircraft;
                  (B) if the cost is directly related to moving 
                passengers and baggage in air commerce within 
                the airport, including vehicles for moving 
                passengers between terminal facilities and 
                between terminal facilities and aircraft; and
                  (C) under terms necessary to protect the 
                interests of the Government.
          (2) In making a decision under paragraph (1) of this 
        subsection, the Secretary may approve as allowable 
        costs the expenses of terminal development in a 
        revenue-producing area and construction, 
        reconstruction, repair, and improvement in a 
        nonrevenue-producing parking lot if--
                  (A) the airport does not have more than .05 
                percent of the total annual passenger boardings 
                in the United States; and
                  (B) the sponsor certifies that any needed 
                airport development project affecting safety, 
                security, or capacity will not be deferred 
                because of the Secretary's approval.
  (e) Letters of intent.--
          (1) The Secretary may issue a letter of intent to the 
        sponsor stating an intention to obligate from future 
        budget authority an amount, not more than the 
        Government's share of allowable project costs, for an 
        airport development project (including costs of 
        formulating the project) at a primary [or reliever] 
        airport. The letter shall establish a schedule under 
        which the Secretary will reimburse the sponsor for the 
        Government's share of allowable project costs, as 
        amounts become available, if the sponsor, after the 
        Secretary issues the letter, carries out the project 
        without receiving amounts under this subchapter.
          (2) Paragraph (1) of this subsection applies to a 
        project--
                  (A) about which the sponsor notifies the 
                Secretary, before the project begins, of the 
                sponsor's intent to carry out the project;
                  (B) that will comply with all statutory and 
                administrative requirements that would apply to 
                the project if it were carried out with amounts 
                made available under this subchapter; and
                  (C) the Secretary decides will enhance 
                system-wide airport capacity significantly and 
                meets the criteria of section 47115(d) of this 
                title.
          (3) A letter of intent issued under paragraph (1) of 
        this subsection is not an obligation of the Government 
        under section 1501 of title 31, and the letter is not 
        deemed to be an administrative commitment for 
        financing. An obligation or administrative commitment 
        may be made only as amounts are provided in 
        authorization and appropriation laws.
          (4) The total estimated amount of future Government 
        obligations covered by all outstanding letters of 
        intent under paragraph (1) of this subsection may not 
        be more than the amount authorized to carry out section 
        48103 of this title, less an amount reasonably 
        estimated by the Secretary to be needed for grants 
        under section 48103 that are not covered by a letter.
          (5) A letter of intent issued under paragraph (1) of 
        this subsection may not condition the obligation of 
        amounts on the imposition of a passenger facility fee.
          (6) Limitation on statutory construction.--Nothing in 
        this section shall be construed to prohibit the 
        obligation of amounts pursuant to a letter of intent 
        under this subsection in the same fiscal year as the 
        letter of intent is issued.
  (f) Nonallowable costs.--Except as provided in subsection (d) 
of this section and section 47118(f) of this title, a cost is 
not an allowable airport development project cost if it is 
for--
          (1) constructing a public parking facility for 
        passenger automobiles;
          (2) constructing, altering, or repairing part of an 
        airport building, except to the extent the building 
        will be used for facilities or activities directly 
        related to the safety of individuals at the airport;
          (3) decorative landscaping; or
          (4) providing or installing sculpture or art works.
  (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.  47114. Apportionments

  (a) Definition.--In this section, ``amount subject to 
apportionment'' means the amount newly made available under 
section 48103 of this title for a fiscal year.
  (b) Apportionment date.--On the first day of each fiscal 
year, the Secretary of Transportation shall apportion the 
amount subject to apportionment for that fiscal year as 
provided in this section.
  (c) Amounts apportioned to sponsors.--
          (1) (A) The Secretary shall apportion to the sponsor 
        of each primary airport for each fiscal year an amount 
        equal to--
                   (i) $7.80 for each of the first 50,000 
                passenger boardings at the airport during the 
                prior calendar year;
                   (ii) $5.20 for each of the next 50,000 
                passenger boardings at the airport during the 
                prior calendar year;
                   (iii) $2.60 for each of the next 400,000 
                passenger boardings at the airport during the 
                prior calendar year;
                   (iv) $.65 for each of the next 500,000 
                passenger boardings at the airport during the 
                prior calendar year.
                   (v) $.50 for each additional passenger 
                boarding at the airport during the prior 
                calendar year.
           (B) Not less than $500,000 nor more than $22,000,000 
        may be apportioned under subparagraph (A) of this 
        paragraph to an airport sponsor for a primary airport 
        for each fiscal year.
          (2) Cargo only airports.--
                   (A) Apportionment.--Subject to subparagraph 
                (D), the Secretary shall apportion an amount 
                equal to [2.5 percent]  3 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.
  (d) Amounts apportioned to States.--
          (1) In this subsection--
                   (A) ``area'' includes land and water.
                   (B) ``population'' means the population 
                stated in the latest decennial census of the 
                United States.
          (2) The Secretary shall apportion to the States 18.5 
        percent of the amount subject to apportionment for each 
        fiscal year as follows:
                   (A) 0.66 percent of the apportioned amount 
                to Guam, American Samoa, the Northern Mariana 
                Islands, the Trust Territory of the Pacific 
                Islands, and the Virgin Islands.
                   (B) except as provided in paragraph (3) of 
                this subsection, 49.67 percent of the 
                apportioned amount for airports, excluding 
                primary airports but including reliever and 
                nonprimary commercial service airports, in 
                States not named in clause (A) of this 
                paragraph in the proportion that the population 
                of each of those States bears to the total 
                population of all of those States.
                   (C) except as provided in paragraph (3) of 
                this subsection, 49.67 percent of the 
                apportioned amount for airports, excluding 
                primary airports but including reliever and 
                nonprimary commercial service airports, in 
                States not named in clause (A) of this 
                paragraph in the proportion that the area of 
                each of those States bears to the total area of 
                all of those States.
          [(3) An amount apportioned under paragraph (2) of 
        this subsection for an airport in--
                  [(A) Alaska may be made available by the 
                Secretary for a public airport described in 
                section 47117(e)(1)(C)(ii) of this title to 
                which section 15(a)(3)(A)(II) of the Airport 
                and Airway Development Act of 1970 applied 
                during the fiscal year that ended September 30, 
                1981; and
                  [(B) Puerto Rico may be made available by the 
                Secretary for a primary airport and an airport 
                described in section 47117(e)(1)(C) of this 
                title.]
          (3) An amount apportioned under paragraph (2) of this 
        subsection for airports in Alaska, Hawaii, or Puerto 
        Rico may be made available by the Secretary for any 
        public airport in those respective jurisdictions.
          (4) The Secretary may permit the use of State highway 
        specifications for airfield pavement construction using 
        funds made available under this subsection at non-
        primary airports with runways of 5,000 feet or shorter 
        serving aircraft that do not exceed 60,000 pounds gross 
        weight, if the Secretary determines that--
                  (A) safety will not be negatively affected; 
                and
                  (B) the life of the pavement will not be 
                shorter than it would be if constructed using 
                Administration standards.
        An airport may not seek funds under this subchapter for 
        runway rehabilitation or reconstruction of any such 
        airfield pavement constructed using State highway 
        specifications for a period of 10 years after 
        construction is completed.
  (e) [Alternative] Supplemental apportionment for Alaska.--
          (1) [Instead of apportioning amounts for airports in 
        Alaska under] Notwithstanding subsections (c) and (d) 
        of this section, the Secretary may apportion amounts 
        for [those airports] airports in Alaska in the way in 
        which amounts were apportioned in the fiscal year 
        ending September 30, 1980, under section 15(a) of the 
        Act. However, in apportioning amounts for a fiscal year 
        under this subsection, the Secretary shall apportion--
                   (A) for each primary airport at least as 
                much as would be apportioned for the airport 
                under subsection (c)(1) of this section; and
                   (B) a total amount at least equal to the 
                minimum amount required to be apportioned to 
                airports in Alaska in the fiscal year ending 
                September 30, 1980, under section 15(a)(3)(A) 
                of the Act.
          (2) This subsection does not prohibit the Secretary 
        from making project grants for airports in Alaska from 
        the discretionary fund under section 47115 of this 
        title.
          [(3) Airports referred to in this subsection include 
        those public airports that received scheduled service 
        as of September 3, 1982, but were not apportioned 
        amounts in the fiscal year ending September 30, 1980, 
        under section 15(a) of the Act because the airports 
        were not under the control of a State or local public 
        agency.]
          (3) An amount apportioned under this subsection may 
        be used for any public airport in Alaska.
  (f) Reducing apportionments.--An amount that would be 
apportioned under this section (except subsection (c)(2)) in a 
fiscal year to the sponsor of an airport having at least .25 
percent of the total number of boardings each year in the 
United States and for which a fee is imposed in the fiscal year 
under section 40117 of this title shall be reduced by an amount 
equal to 50 percent of the projected revenues from the fee in 
the fiscal year but not by more than 50 percent of the amount 
that otherwise would be apportioned under this section.

Sec.  47115. Discretionary fund

  (a) Existence and amounts in fund.--The Secretary of 
Transportation has a discretionary fund. The fund consists of--
          (1) amounts subject to apportionment for a fiscal 
        year that are not apportioned under section 47114(c)-
        (e) of this title; and
          (2) [25] 12.5 percent of amounts not apportioned 
        under section 47114 of this title because of section 
        47114(f).
  (b) Availability of amounts.--Subject to subsection (c) of 
this section and section 47117(e) of this title, the fund is 
available for making grants for any purpose for which amounts 
are made available under section 48103 of this title that the 
Secretary considers most appropriate to carry out this 
subchapter. [However, 50 percent of amounts not apportioned 
under section 47114 of this title because of section 47114(f) 
and added to the fund is available for making grants for 
projects at small hub airports (as defined in section 41731 of 
this title).]
  (c) Minimum percentage for primary and reliever airports.--At 
least 75 percent of the amount in the fund and distributed by 
the Secretary in a fiscal year shall be used for making 
grants--
          (1) to preserve and enhance capacity, safety, and 
        security at primary and reliever airports; and
          (2) to carry out airport noise compatibility planning 
        and programs at primary and reliever airports.
  (d) Considerations.--In selecting a project for a grant to 
preserve and enhance capacity as described in subsection (c)(1) 
of this section, the Secretary shall consider--
          (1) the effect the project will have on the overall 
        national air transportation system capacity;
          (2) the project benefit and cost, 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;
          (3) the financial commitment from non-United States 
        Government sources to preserve or enhance airport 
        capacity;
          (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);
          (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.
  (e) Waiving percentage requirement.--If the Secretary decides 
the Secretary cannot comply with the percentage requirement of 
subsection (c) of this section in a fiscal year because there 
are insufficient qualified grant applications to meet that 
percentage, the amount the Secretary determines will not be 
distributed as required by subsection (c) is available for 
obligation during the fiscal year without regard to the 
requirement.
  (f) Consideration of diversion of revenues in awarding 
discretionary grants.--
          (1) General rule.-- Subject to paragraph (2), in 
        deciding whether or not to distribute funds to an 
        airport from the discretionary funds established by 
        subsection (a) of this section and section 47116 of 
        this title, the Secretary shall consider as a factor 
        militating against the distribution of such funds to 
        the airport the fact that the airport is using revenues 
        generated by the airport or by local taxes on aviation 
        fuel for purposes other than capital or operating costs 
        of the airport or the local airports system or other 
        local facilities which are owned or operated by the 
        owner or operator of the airport and directly and 
        substantially related to the actual air transportation 
        of passengers or property.
          (2) Required finding.--Paragraph (1) shall apply only 
        when the Secretary finds that the amount of revenues 
        used by the airport for purposes other than capital or 
        operating costs in the airport's fiscal year preceding 
        the date of the application for discretionary funds 
        exceeds the amount of such revenues in the airport's 
        first fiscal year ending after August 23, 1994, 
        adjusted by the Secretary for changes in the Consumer 
        Price Index of All Urban Consumers published by the 
        Bureau of Labor Statistics of the Department of Labor.
  (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.
                   [(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.]
  (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.  @ 47116. Small airport fund

  (a) Existence and amounts in fund.--The Secretary of 
Transportation has a small airport fund. The fund consists of 
[75] 87.5 percent of amounts not apportioned under section 
47114 of this title because of section 47114(f).
  (b) Distribution of amounts.--The Secretary may distribute 
amounts in the fund in each fiscal year for any purpose for 
which amounts are made available under section 48103 of this 
title as follows:
          (1) one-seventh for grants for projects at small hub 
        airports (as defined in section 41731 of this title); 
        and
          (2) the remaining amounts based on the following:
                  [(1)] (A) one-third for grants to sponsors of 
                public-use airports (except commercial service 
                airports).
                  [(2)] (B) two-thirds for grants to sponsors 
                of each commercial service airport that each 
                year has less than .05 percent of the total 
                boardings in the United States in that year.
  (c) Authority to receive grant not dependent on participation 
in block grant pilot program.--An airport in a State 
participating in the State block grant pilot program under 
section 47128 of this title may receive a grant under this 
section to the same extent the airport may receive a grant if 
the State were not participating in the program.
  (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.  47117. Use of apportioned amounts

  (a) Grant purpose.--Except as provided in this section, an 
amount apportioned under section 47114(c)(1) or (d)(2) of this 
title is available for making grants for any purpose for which 
amounts are made available under section 48103 of this title.
  (b) Period of availability.--An amount apportioned under 
section 47114 of this title is available to be obligated for 
grants under the apportionment only during the fiscal year for 
which the amount was apportioned and the 2 fiscal years 
immediately after that year 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. If the amount is not 
obligated under the apportionment within that time, it shall be 
added to the discretionary fund.
  (c) Primary airports.--
          (1) An amount apportioned to a sponsor of a primary 
        airport under section 47114(c)(1) of this title is 
        available for grants for any public-use airport of the 
        sponsor included in the national plan of integrated 
        airport systems.
          (2) A sponsor of a primary airport may make an 
        agreement with the Secretary of Transportation waiving 
        any part of the amount apportioned for the airport 
        under section 47114(c)(1) of this title if the 
        Secretary makes the waived amount available for a grant 
        for another public-use airport in the same State or 
        geographical area as the primary airport.
  (d) State use.--An amount apportioned to a State under--
          (1) section 47114(d)(2)(A) of this title is available 
        for grants for airports located in the State; and
          (2) section 47114(d)(2)(B) or (C) of this title is 
        available for grants for airports described in section 
        47114(d)(2)(B) or (C) and located in the State.
  (e) Special apportionment categories.--
          (1) The Secretary shall use amounts available to the 
        discretionary fund under section 47115 of this title 
        for each fiscal year as follows:
                   (A) At least [31] 35 percent for grants for 
                airport noise compatibility planning under 
                section 47505(a)(2) of this title and for 
                carrying out noise compatibility programs under 
                section 47504(c) of this title. 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] 35 percent 
                requirement is being met in that fiscal year.
                   (B) [At] at least 4 percent for each of 
                fiscal years 1997 and 1998 to sponsors of 
                current or former military airports designated 
                by the Secretary under section 47118(a) of this 
                title for grants for developing current and 
                former military airports to improve the 
                capacity of the national air transportation 
                system 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.
          (2) If the Secretary decides that an amount required 
        to be used for grants under paragraph (1) of this 
        subsection cannot be used for a fiscal year because 
        there are insufficient qualified grant applications, 
        the amount the Secretary determines cannot be used is 
        available during the fiscal year for grants for other 
        airports or for other purposes for which amounts are 
        authorized for grants under section 48103 of this 
        title.
  [(f) Limitation for commercial service airport in Alaska.--
The Secretary may not make a grant for a commercial service 
airport in Alaska of more than 110 percent of the amount 
apportioned for the airport for a fiscal year under section 
47114(e) of this title.]
  [(g)] (f) Discretionary use of apportionments.--
          (1) Subject to paragraph (2) of this subsection, if 
        the Secretary finds, based on the notices the Secretary 
        receives under section 47105(f) of this title or 
        otherwise, that an amount apportioned under section 
        47114 of this title will not be used for grants during 
        a fiscal year, the Secretary may use an equal amount 
        for grants during that fiscal year for any of the 
        purposes for which amounts are authorized for grants 
        under section 48103 of this title.
          (2) The Secretary may make a grant under paragraph 
        (1) of this subsection only if the Secretary decides 
        that--
                   (A) the total amount used for grants for the 
                fiscal year under section 48103 of this title 
                will not be more than the amount made available 
                under section 48103 for that fiscal year; and
                   (B) the amounts authorized for grants under 
                section 48103 of this title for later fiscal 
                years are sufficient for grants of the 
                apportioned amounts that were not used for 
                grants under the apportionment during the 
                fiscal year and that remain available under 
                subsection (b) of this section.
  [(h)] (g) Limiting authority of Secretary.--The authority of 
the Secretary to make grants during a fiscal year from amounts 
that were apportioned for a prior fiscal year and remain 
available for approved airport development project grants under 
subsection (b) of this section may be impaired only by a law 
enacted after September 3, 1982, that expressly limits that 
authority.

Sec.  47120. Grant priority

  (a) In General._In making a grant under this subchapter, the 
Secretary of Transportation may give priority to a project that 
is consistent with an integrated airport system plan.
  (b) Discretionary Funding To Be Used for Higher Priority 
Projects.--The Administrator of the Federal Aviation 
Administration shall discourage airport sponsors and airports 
from using entitlement funds for lower priority projects by 
giving lower priority to discretionary projects submitted by 
airport sponsors and airports that have used entitlement funds 
for projects that have a lower priority than the projects for 
which discretionary funds are being requested.

Sec.  47125. Conveyances of United States Government land

  [(a) Conveyances to public agencies.--Except as provided in 
subsection (b) of this section, the Secretary of Transportation 
shall request the head of the department, agency, or 
instrumentality of the United States Government owning or 
controlling land or airspace to convey a property interest in 
the land or airspace to the public agency sponsoring the 
project or owning or controlling the airport when necessary to 
carry out a project under this subchapter at a public airport, 
to operate a public airport, or for the future development of 
an airport under the national plan of integrated airport 
systems. The head of the department, agency, or instrumentality 
shall decide whether the requested conveyance is consistent 
with the needs of the department, agency, or instrumentality 
and shall notify the Secretary of that decision not later than 
4 months after receiving the request. If the head of the 
department, agency, or instrumentality decides that the 
requested conveyance is consistent with its needs, the head of 
the department, agency, or instrumentality, with the approval 
of the Attorney General and without cost to the Government, 
shall make the conveyance. A conveyance may be made only on the 
condition that the property interest conveyed reverts to the 
Government, at the option of the Secretary, to the extent it is 
not developed for an airport purpose or used consistently with 
the conveyance.]
  (a) Conveyances to Public Agencies.--Except as provided in 
subsection (b) of this section, the Secretary of 
Transportation--
          (1) shall request the head of the department, agency, 
        or instrumentality owning or controlling land or 
        airspace to convey a property interest in the land or 
        airspace to the public agency sponsoring the project or 
        owning or controlling the airport when necessary to 
        carry out a project under this subchapter at a public 
        airport, to operate a public airport, or for the future 
        development of an airport under the national plan of 
        integrated airport systems; and
          (2) may request the head of such a department, 
        agency, or instrumentality to convey a property 
        interest in the land or airspace to a public agency for 
        a use that will complement, facilitate, or augment 
        airport development, including the development of 
        additional revenue from both aviation and nonaviation 
        sources if the Secretary--
                  (A) determines that the property is no longer 
                needed for aeronautical purposes;
                  (B) determines that the property will be used 
                to generate revenue for the public airport;
                  (C) provides preliminary notice to the head 
                of such department, agency, or instrumentality 
                at least 30 days before making the request;
                  (D) provides an opportunity for notice to the 
                public on the request; and
                  (E) includes in the request a written 
                justification for the conveyance.
  (b) Nonapplication.--Except as specifically provided by law, 
subsection (a) of this section does not apply to land or 
airspace owned or controlled by the Government within--
          (1) a national park, national monument, national 
        recreation area, or similar area under the 
        administration of the National Park Service;
          (2) a unit of the National Wildlife Refuge System or 
        similar area under the jurisdiction of the United 
        States Fish and Wildlife Service; or
          (3) a national forest or Indian reservation.--

Sec.  47135. Innovative financing techniques

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

Sec.  47136. Airport security program

  (a) General Authority.--To improve security at public 
airports in the United States, the Secretary of Transportation 
shall carry out not less than 1 project to test and evaluate 
innovative airport security systems and related technology.
  (b) Priority.--In carrying out this section, the Secretary 
shall give the highest priority to a request from an eligible 
sponsor for a grant to undertake a project that--
          (1) evaluates and tests the benefits of innovative 
        airport security systems or related technology, 
        including explosives detection systems, for the purpose 
        of improving airport and aircraft physical security and 
        access control; and
          (2) provides testing and evaluation of airport 
        security systems and technology in an operational, test 
        bed environment.
  (c) Matching Share.--Notwithstanding section 47109, the 
United States Government's share of allowable project costs for 
a project under this section is 100 percent.
  (d) Terms and Conditions.--The Secretary may establish such 
terms and conditions as the Secretary determines appropriate 
for carrying out a project under this section, including terms 
and conditions relating to the form and content of a proposal 
for a project, project assurances, and schedule of payments.
  (e) Eligible Sponsor Defined.--In this section, the term 
``eligible sponsor'' means a nonprofit corporation composed of 
a consortium of public and private persons, including a sponsor 
of a primary airport, with the necessary engineering and 
technical expertise to successfully conduct the testing and 
evaluation of airport and aircraft related security systems.
  (f) Authorization of Appropriations.--Of the amounts made 
available to the Secretary under section 47115 in a fiscal 
year, the Secretary shall make available not less than 
$5,000,000 for the purpose of carrying out this section.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                 PART B. AIRPORT DEVELOPMENT AND NOISE

                    CHAPTER 471. AIRPORT DEVELOPMENT

          SUBCHAPTER II. SURPLUS PROPERTY FOR PUBLIC AIRPORTS

Sec.  47151. Authority to transfer an interest in surplus property

  (a) General authority.--Subject to sections 47152 and 47153 
of this title, a department, agency, or instrumentality of the 
executive branch of the United States Government or a wholly 
owned Government corporation may [give] convey to a State, 
political subdivision of a State, or tax-supported organization 
any interest in surplus property--
          (1) that the Secretary of Transportation decides is--
                   (A) desirable for developing, improving, 
                operating, or maintaining a public airport (as 
                defined in section 47102 of this title);
                   (B) reasonably necessary to fulfill the 
                immediate and foreseeable future requirements 
                for developing, improving, operating, or 
                maintaining a public airport; or
                   (C) needed for developing sources of revenue 
                from nonaviation businesses at a public 
                airport; and
          (2) if the Administrator of General Services approves 
        the [gift] conveyance and decides the interest is not 
        best suited for industrial use.
  (b) Ensuring compliance.--Only the Secretary may ensure 
compliance with an instrument [giving] conveying an interest in 
surplus property under this subchapter . The Secretary may 
amend the instrument to correct the instrument or to make the 
[gift] conveyance comply with law.
  (c) Disposing of interests not given under this subchapter 
.--An interest in surplus property that could be used at a 
public airport but that is not given under this subchapter 
shall be disposed of under other applicable law.
  (d) Priority for Public Airports.--Except for requests from 
another Federal agency, a department, agency, or 
instrumentality of the Executive Branch of the United States 
Government shall give priority to a request by a public agency 
(as defined in section 47102 of this title) for surplus 
property described in subsection (a) of this section for use at 
a public airport.

Sec.  47152. Terms of [gifts] conveyances

  Except as provided in section 47153 of this title, the 
following terms apply to a [gift] conveyance of an interest in 
surplus property under this subchapter :
          (1) A State, political subdivision of a State, or 
        tax-supported organization receiving the interest may 
        use, lease, salvage, or dispose of the interest for 
        other than airport purposes only after the Secretary of 
        Transportation gives written consent that the interest 
        can be used, leased, salvaged, or disposed of without 
        materially and adversely affecting the development, 
        improvement, operation, or maintenance of the airport 
        at which the property is located.
          (2) The interest shall be used and maintained for 
        public use and benefit without unreasonable 
        discrimination.
          (3) A right may not be vested in a person, excluding 
        others in the same class from using the airport at 
        which the property is located--
                   (A) to conduct an aeronautical activity 
                requiring the operation of aircraft; or
                   (B) to engage in selling or supplying 
                aircraft, aircraft accessories, equipment, or 
                supplies (except gasoline and oil), or aircraft 
                services necessary to operate aircraft 
                (including maintaining and repairing aircraft, 
                aircraft engines, propellers, and appliances).
          (4) The State, political subdivision, or tax-
        supported organization accepting the interest shall 
        clear and protect the aerial approaches to the airport 
        by mitigating existing, and preventing future, airport 
        hazards.
          (5) During a national emergency declared by the 
        President or Congress, the United States Government is 
        entitled to use, control, or possess, without charge, 
        any part of the public airport at which the property is 
        located. However, the Government shall--
                   (A) pay the entire cost of maintaining the 
                part of the airport it exclusively uses, 
                controls, or possesses during the emergency;
                   (B) contribute a reasonable share, 
                consistent with the Government's use, of the 
                cost of maintaining the property it uses 
                nonexclusively, or over which the Government 
                has nonexclusive control or possession, during 
                the emergency; and
                   (C) pay a fair rental for use, control, or 
                possession of improvements to the airport made 
                without Government assistance.
          (6) The Government is entitled to the nonexclusive 
        use, without charge, of the landing area of an airport 
        at which the property is located. The Secretary may 
        limit the use of the landing area if necessary to 
        prevent unreasonable interference with use by other 
        authorized aircraft. However, the Government shall--
                   (A) contribute a reasonable share, 
                consistent with the Government's use, of the 
                cost of maintaining and operating the landing 
                area; and
                   (B) pay for damages caused by its use of the 
                landing area if its use of the landing area is 
                substantial.
          (7) The State, political subdivision, or tax-
        supported organization accepting the interest shall 
        release the Government from all liability for damages 
        arising under an agreement that provides for Government 
        use of any part of an airport owned, controlled, or 
        operated by the State, political subdivision, or tax-
        supported organization on which, adjacent to which, or 
        in connection with which, the property is located.
          (8) When a term under this section is not satisfied, 
        any part of the interest in the property reverts to the 
        Government, at the option of the Government, as the 
        property then exists.

Sec.  47153. Waiving and adding terms

  (a) General authority.--
          (1) The Secretary of Transportation may waive, 
        without charge, a term of a [gift] conveyance of an 
        interest in property under this subchapter if the 
        Secretary decides that--
                   (A) the property no longer serves the 
                purpose for which it was [given;] conveyed; or
                   (B) the waiver will not prevent carrying out 
                the purpose for which the [gift] conveyance was 
                made and is necessary to advance the civil 
                aviation interests of the United States.
          (2) The Secretary of Transportation shall waive a 
        term under paragraph (1) of this subsection on terms 
        the Secretary considers necessary to protect or advance 
        the civil aviation interests of the United States.
  (b) Waivers and inclusion of additional terms on request.--On 
request of the Secretary of Transportation or the Secretary of 
a military department, a department, agency, or instrumentality 
of the executive branch of the United States Government or a 
wholly owned Government corporation may waive a term required 
by section 47152 of this title or add another term if the 
appropriate Secretary decides it is necessary to protect or 
advance the interests of the United States in civil aviation or 
for national defense.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                 PART B. AIRPORT DEVELOPMENT AND NOISE

                           CHAPTER 475. NOISE

             SUBCHAPTER II. NATIONAL AVIATION NOISE POLICY

Sec.  47528. Prohibition on operating certain aircraft not complying 
                    with stage 3 noise levels

  (a) Prohibition.--Except as provided in subsection (b) of 
this section and section 47530 of this title, a person may 
operate after December 31, 1999, a civil subsonic turbojet with 
a maximum weight of more than 75,000 pounds to or from an 
airport in the United States only if the Secretary of 
Transportation finds that the aircraft complies with the stage 
3 noise levels.
  (b) Waivers.--
          (1) If, not later than July 1, 1999, at least 85 
        percent of the aircraft used by an air carrier or 
        foreign air carrier to provide air transportation 
        comply with the stage 3 noise levels, the carrier or 
        foreign air carrier may apply for a waiver of 
        subsection (a) of this section for the remaining 
        aircraft used by the carrier to provide air 
        transportation. The application must be filed with the 
        Secretary not later than January 1, 1999, and must 
        include a plan with firm orders for making all aircraft 
        used by the carrier to provide air transportation 
        comply with the noise levels not later than December 
        31, 2003.
          (2) The Secretary may grant a waiver under this 
        subsection if the Secretary finds it would be in the 
        public interest. In making the finding, the Secretary 
        shall consider the effect of granting the waiver on 
        competition in the air carrier industry and on small 
        community air service.
          (3) A waiver granted under this subsection may not 
        permit the operation of stage 2 aircraft in the United 
        States after December 31, 2003.
  (c) Schedule for phased-in compliance.--The Secretary shall 
establish by regulation a schedule for phased-in compliance 
with subsection (a) of this section. The phase-in period shall 
begin on November 5, 1990, and end before December 31, 1999. 
The regulations shall establish interim compliance dates. The 
schedule for phased-in compliance shall be based on--
          (1) a detailed economic analysis of the impact of the 
        phaseout date for stage 2 aircraft on competition in 
        the airline industry, including--
                   (A) the ability of air carriers to achieve 
                capacity growth consistent with the projected 
                rate of growth for the airline industry;
                   (B) the impact of competition in the airline 
                and air cargo industries;
                   (C) the impact on nonhub and small community 
                air service; and
                   (D) the impact on new entry into the airline 
                industry; and
          (2) an analysis of the impact of aircraft noise on 
        individuals residing near airports.
  (d) Annual report.--Beginning with calendar year 1992--
          (1) each air carrier shall submit to the Secretary an 
        annual report on the progress the carrier is making 
        toward complying with the requirements of this section 
        and regulations prescribed under this section; and
          (2) the Secretary shall submit to Congress an annual 
        report on the progress being made toward that 
        compliance.
  (e) Hawaiian operations.--
          (1) In this subsection, ``turnaround service'' means 
        a flight between places only in Hawaii.
          (2) (A) An air carrier or foreign air carrier may not 
        operate in Hawaii, or between a place in Hawaii and a 
        place outside the 48 contiguous States, a greater 
        number of stage 2 aircraft with a maximum weight of 
        more than 75,000 pounds than it operated in Hawaii, or 
        between a place in Hawaii and a place outside the 48 
        contiguous States, on November 5, 1990.
           (B) An air carrier that provided turnaround service 
        in Hawaii on November 5, 1990, using stage 2 aircraft 
        with a maximum weight of more than 75,000 pounds may 
        include in the number of aircraft authorized under 
        subparagraph (A) of this paragraph all stage 2 aircraft 
        with a maximum weight of more than 75,000 pounds that 
        were owned or leased by that carrier on that date, 
        whether or not the aircraft were operated by the 
        carrier on that date.
          (3) An air carrier may provide turnaround service in 
        Hawaii using stage 2 aircraft with a maximum weight of 
        more than 75,000 pounds only if the carrier provided 
        the service on November 5, 1990.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                           PART C. FINANCING

       CHAPTER 481. AIRPORT AND AIRWAY TRUST FUND AUTHORIZATIONS

Sec.  48101. Air navigation facilities and equipment

  (a) General authorization of appropriations.--Not more than a 
total of the following amounts may be appropriated to the 
Secretary of Transportation out of the Airport and Airway Trust 
Fund established under section 9502 of the Internal Revenue 
Code of 1986 (26 U.S.C. 9502) to acquire, establish, and 
improve air navigation facilities under section 44502(a)(1)(A) 
of this title:
                  [(1) $2,068,000,000 for fiscal year 1997.
                  [(2) $2,129,000,000 for fiscal year 1998.]
          (1) for fiscal year 1999--
                  (A) $222,800,000 for engineering, 
                development, test, and evaluation: en route 
                programs;
                  (B) $74,700,000 for engineering, development, 
                test, and evaluation: terminal programs;
                  (C) $108,000,000 for engineering, 
                development, test, and evaluation: landing and 
                navigational aids;
                  (D) $17,790,000 for engineering, development, 
                test, and evaluation: research, test, and 
                evaluation equipment and facilities programs;
                  (E) $391,358,300 for air traffic control 
                facilities and equipment: en route programs;
                  (F) $492,315,500 for air traffic control 
                facilities and equipment: terminal programs;
                  (G) $38,764,400 for air traffic control 
                facilities and equipment: flight services 
                programs;
                  (H) $50,500,000 for air traffic control 
                facilities and equipment: other ATC facilities 
                programs;
                  (I) $162,400,000 for non-ATC facilities and 
                equipment programs;
                  (J) $14,500,000 for training and equipment 
                facilities programs;
                  (K) $280,800,000 for mission support 
                programs;
                  (L) $235,210,000 for personnel and related 
                expenses;
          (2) $2,189,000,000 for fiscal year 2000;
          (3) $2,250,000,000 for fiscal year 2001; and
          (4) $2,313,000,000 for fiscal year 2002.
  (b) Continuation of ILS Inventory Program.--Section 
44502(a)(4)(B) is amended--
          (1) by striking ``fiscal years 1995 and 1996'' and 
        inserting ``fiscal year 1999''; and
          (2) by inserting ``under new or existing contracts'' 
        after ``including acquisition''.
          (b) Major airway capital investment plan changes.--If 
        the Secretary decides that it is necessary to augment 
        or substantially modify elements of the Airway Capital 
        Investment Plan referred to in section 44501(b) of this 
        title (including a decision that it is necessary to 
        establish more than 23 area control facilities), not 
        more than $100,000,000 may be appropriated to the 
        Secretary out of the Fund for the fiscal year ending 
        September 30, 1994, to carry out the augmentation or 
        modification.
  (c) Availability of amounts.--Amounts appropriated under this 
section remain available until expended.

Sec.  48103. Airport planning and development and noise compatibility 
                    planning and programs

  The total amounts which shall be available after [September 
30, 1996,] September 30, 1998, to the Secretary of 
Transportation out of the Airport and Airway Trust Fund 
established under section 9502 of the Internal Revenue Code of 
1986 (26 U.S.C. 9502) to make grants for airport planning and 
airport development under section 47104 of this title, airport 
noise compatibility planning under section 47505(a)(2) of this 
title, and carrying out noise compatibility programs under 
section 47504(c) of this title shall be [$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.] $2,410,000,000 
for fiscal years ending before October 1, 1999, $4,885,000,000 
for fiscal years ending before October 1, 2000, $7,427,000,000 
for fiscal years ending before October 1, 2001, and 
$10,038,000,000 for fiscal years ending before October 1, 2002.

                        TITLE 49. TRANSPORTATION

                    SUBTITLE VII. AVIATION PROGRAMS

                        PART D. PUBLIC AIRPORTS

             CHAPTER 491. METROPOLITAN WASHINGTON AIRPORTS

Sec.  49106. Metropolitan Washington Airports Authority

  (a) Status.--The Metropolitan Washington Airports Authority 
shall be--
          (1) a public body corporate and politic with the 
        powers and jurisdiction--
                   (A) conferred upon it jointly by the 
                legislative authority of Virginia and the 
                District of Columbia or by either of them and 
                concurred in by the legislative authority of 
                the other jurisdiction; and
                   (B) that at least meet the specifications of 
                this section and section 49108 of this title;
          (2) independent of Virginia and its local 
        governments, the District of Columbia, and the United 
        States Government; and
          (3) a political subdivision constituted only to 
        operate and improve the Metropolitan Washington 
        Airports as primary airports serving the Metropolitan 
        Washington area.
  (b) General authority.--
          (1) The Airports Authority shall be authorized--
                   (A) to acquire, maintain, improve, operate, 
                protect, and promote the Metropolitan 
                Washington Airports for public purposes;
                   (B) to issue bonds from time to time in its 
                discretion for public purposes, including 
                paying any part of the cost of airport 
                improvements, construction, and rehabilitation 
                and the acquisition of real and personal 
                property, including operating equipment for the 
                airports;
                   (C) to acquire real and personal property by 
                purchase, lease, transfer, or exchange;
                   (D) to exercise the powers of eminent domain 
                in Virginia that are conferred on it by 
                Virginia;
                   (E) to levy fees or other charges; and
                   (F) to make and maintain agreements with 
                employee organizations to the extent that the 
                Federal Aviation Administration was authorized 
                to do so on October 18, [1996.] 1986.
          (2) Bonds issued under paragraph (1)(B) of this 
        subsection--
                   (A) are not a debt of Virginia, the District 
                of Columbia, or a political subdivision of 
                Virginia or the District of Columbia; and
                   (B) may be secured by the Airports 
                Authority's revenues generally, or exclusively 
                from the income and revenues of certain 
                designated projects whether or not any part of 
                the projects are financed from the proceeds of 
                the bonds.
  (c) Board of directors.--
          (1) The Airports Authority shall be governed by a 
        board of directors composed of the following 13 
        members:
                   (A) 5 members appointed by the Governor of 
                Virginia;
                   (B) 3 members appointed by the Mayor of the 
                District of Columbia;
                   (C) 2 members appointed by the Governor of 
                Maryland; and
                   (D) 3 members appointed by the President 
                with the advice and consent of the Senate.
          (2) The chairman of the board shall be appointed from 
        among the members by majority vote of the members and 
        shall serve until replaced by majority vote of the 
        members.
          (3) Members of the board shall be appointed [by the 
        board] to the board for 6 years, except that of the 
        members first appointed by the President after October 
        9, 1996, one shall be appointed for 4 years. A member 
        may serve after the expiration of that member's term 
        until a successor has taken office.
          (4) A member of the board--
                   (A) may not hold elective or appointive 
                political office;
                   (B) serves without compensation except for 
                reasonable expenses incident to board 
                functions; and
                   (C) must reside within the Washington 
                Standard Metropolitan Statistical Area, except 
                that a member of the board appointed by the 
                President must be a registered voter of a State 
                other than Maryland, Virginia, or the District 
                of Columbia.
          (5) A vacancy in the board shall be filled in the 
        manner in which the original appointment was made. A 
        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 that term.
          (6) (A) Not more than 2 of the members of the board 
        appointed by the President may be of the same political 
        party.
                   (B) In carrying out their duties on the 
                board, members appointed by the President shall 
                ensure that adequate consideration is given to 
                the national interest.
                   (C) The members to be appointed under 
                paragraph (1)(D) of this subsection must be 
                appointed before October 1, 1997. If the 
                deadline is not met, the Secretary of 
                Transportation and the Airports Authority are 
                subject to the limitations of section 49108 of 
                this title until all members referred to in 
                paragraph (1)(D) are appointed.
                   (D) A member appointed by the President may 
                be removed by the President for cause.
          (7) Eight votes are required to approve bond issues 
        and the annual budget.
  (d) Conflicts of interest.--Members of the board and their 
immediate families may not be employed by or otherwise hold a 
substantial financial interest in any enterprise that has or is 
seeking a contract or agreement with the Airports Authority or 
is an aeronautical, aviation services, or airport services 
enterprise that otherwise has interests that can be directly 
affected by the Airports Authority. The official appointing a 
member may make an exception if the financial interest is 
completely disclosed when the member is appointed and the 
member does not participate in board decisions that directly 
affect the interest.
  (e) Certain actions to be taken by regulation.--An action of 
the Airports Authority changing, or having the effect of 
changing, the hours of operation of, or the type of aircraft 
serving, either of the Metropolitan Washington Airports may be 
taken only by regulation of the Airports Authority.
  (f) Administrative.--To assist the Secretary in carrying out 
this chapter, the Secretary may hire 2 staff individuals to be 
paid by the Airports Authority. The Airports Authority shall 
provide clerical and support staff that the Secretary may 
require.
  (g) Review of contracting procedures.--The Comptroller 
General shall review contracts of the Airports Authority to 
decide whether the contracts were awarded by procedures that 
follow sound Government contracting principles and comply with 
section 49104(a)(4) of this title. The Comptroller General 
shall submit periodic reports of the conclusions reached as a 
result of the review to the Committee on Transportation and 
Infrastructure of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the 
Senate.

Sec.  49107. Federal employees at Metropolitan Washington Airports

   (a) Labor agreements.--
          (1) The Metropolitan Washington Airports Authority 
        shall adopt all labor agreements that were in effect on 
        June 7, 1987. Unless the parties otherwise agree, the 
        agreements must be renegotiated before June 7, 1992.
          (2) Employee protection arrangements made under this 
        section shall ensure, during the 50-year lease term, 
        the continuation of all collective bargaining rights 
        enjoyed by transferred employees retained by the 
        Airports Authority.
  (b) Civil service retirement.--Any Federal employee who 
transferred to the Airports Authority and who on June 6, 1987, 
was subject to subchapter III of chapter 83 or chapter 84 of 
title 5, is subject to [subchapter II] subchapter III of 
chapter 83 or chapter 84 for so long as continually employed by 
the Airports Authority without a break in service. For purposes 
of subchapter III of chapter 83 and chapter 84, employment by 
the Airports Authority without a break in continuity of service 
is deemed to be employment by the United States Government. The 
Airports Authority is the employing agency for purposes of 
subchapter III of chapter 83 and chapter 84 and shall 
contribute to the Civil Service Retirement and Disability Fund 
amounts required by subchapter III of chapter 83 and chapter 
84.
  (c) Access to records.--The Airports Authority shall allow 
representatives of the Secretary of Transportation adequate 
access to employees and employee records of the Airports 
Authority when needed to carry out a duty or power related to 
the period before June 7, 1987. The Secretary shall provide the 
Airports Authority access to employee records of transferring 
employees for appropriate purposes.

Sec.  49111. Relationship to and effect of other laws

  (a) Same powers and restrictions under other laws.--To ensure 
that the Metropolitan Washington Airports Authority has the 
same proprietary powers and is subject to the same restrictions 
under United States law as any other airport except as 
otherwise provided in this chapter, during the period that the 
lease authorized by section 6005 of the Metropolitan Washington 
Airports Act of 1986 (Public Law 99-500; 100 Stat. 1783-375; 
Public Law 99-591; 100 Stat. 3341-378) is in effect--
          (1) the Metropolitan Washington Airports are deemed 
        to be public airports for purposes of chapter 471 of 
        this title; and (2) the Act of June 29, 1940 (ch. 444, 
        54 Stat. 686), the First Supplemental Civil Functions 
        Appropriations Act, 1941 (ch. 780, 54 Stat. 1030), and 
        the Act of September 7, 1950 (ch. 905, 64 Stat. 770), 
        do not apply to the operation of the Metropolitan 
        Washington Airports, and the Secretary of 
        Transportation is relieved of all responsibility under 
        those Acts.
  (b) Inapplicability of certain laws.--The Metropolitan 
Washington Airports and the Airports Authority are not subject 
to the requirements of any law solely by reason of the 
[retention of] retention by the United States Government of the 
fee simple title to those airports.
  (c) Police power.--Virginia shall have concurrent police 
power authority over the Metropolitan Washington Airports, and 
the courts of Virginia may exercise jurisdiction over Ronald 
Reagan Washington National Airport.
  (d) Planning.--
          (1) The authority of the National Capital Planning 
        Commission under section 5 of the Act of June 6, 1924 
        (40 U.S.C. 71d), does not apply to the Airports 
        Authority.
          (2) The Airports Authority shall consult with--
                   (A) the Commission and the Advisory Council 
                on Historic Preservationbefore undertaking any 
                major alterations to the exterior of the main 
                terminal at Washington Dulles International 
                Airport; and
                   (B) the Commission before undertaking 
                development that would alter theskyline of 
                Ronald Reagan Washington National Airport when 
                viewed from the opposing shoreline of the 
                Potomac River or from the George Washington 
                Parkway.
  (e) Operation limitations.--The Administrator of the Federal 
Aviation Administration may not increase the number of 
instrument flight rule takeoffs and landings authorized for air 
carriers by the High Density Rule (14 CFR 93.121 et seq.) at 
Ronald Reagan Washington National Airport on October 18, 1986, 
and may not decrease the number of those takeoffs and landings 
except for reasons of safety.

                     INTERNAL REVENUE CODE OF 1986

                      SUBTITLE I. TRUST FUND CODE

                      CHAPTER 98. TRUST FUND CODE

               SUBCHAPTER A. ESTABLISHMENT OF TRUST FUNDS

Sec.  9502. Airport and Airway Trust Fund.

  (a) Creation of Trust Fund.--There is established in the 
Treasury of the United States a trust fund to be known as the 
``Airport and Airway Trust Fund'', consisting of such amounts 
as may be appropriated or credited to the Airport and Airway 
Trust Fund as provided in this section or section 9602(b).
  (b) Transfers to Airport and Airway Trust Fund.--There are 
hereby appropriated to the Airport and Airway Trust Fund 
amounts equivalent to--
          (1) the taxes received in the Treasury under--
                   (A) subsections (c) and (e) of section 4041 
                (relating to aviation fuels),
                   (B) sections 4261 and 4271 (relating to 
                transportation by air),
                   (C) section 4081 (relating to gasoline) with 
                respect to aviation gasoline, and
                   (D) section 4091 (relating to aviation 
                fuel), and
        There shall not be taken into account under paragraph 
        (1) so much of the taxes imposed by sections 4081 and 
        4091 as are determined at the rates specified in 
        section 4081(a)(2)(B) or 4091(b)(2).
          (2) the 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.
  (c) Appropriation of additional sums.--There are hereby 
authorized to be appropriated to the Airport and Airway Trust 
Fund such additional sums as may be required to make the 
expenditures referred to in subsection (d) of this section.
  (d) Expenditures from Airport and Airway Trust Fund.--
          (1) Airport and airway program.--Amounts in the 
        Airport and Airway Trust Fund shall be available, as 
        provided by appropriation Acts, for making expenditures 
        before October 1, [1998,] 2002, to meet those 
        obligations of the United States--
                   (A) incurred under title I of the Airport 
                and Airway Development Act of 1970 or of the 
                Airport and Airway Development Act Amendments 
                of 1976 or of the Aviation Safety and Noise 
                Abatement Act of 1979 or under the Fiscal Year 
                1981 Airport Development Authorization Act or 
                the provisions of the Airport and Airway 
                Improvement Act of 1982 or the Airport and 
                Airway Safety and Capacity Expansion Act of 
                1987 or the Federal Aviation Administration 
                Research, Engineering, and Development 
                Authorization Act of 1990 or the Aviation 
                Safety and Capacity Expansion Act of 1990 or 
                the Airport and Airway Safety, Capacity, Noise 
                Improvement, and Intermodal Transportation Act 
                of 1992 or the Airport Improvement Program 
                Temporary Extension Act of 1994 or the Federal 
                Aviation Administration Authorization Act of 
                1994 or the Federal Aviation Reauthorization 
                Act of [1996;] 1996, or the Wendell H. Ford 
                National Air Transportation System Improvement 
                Act of 1998;
                   (B) heretofore or hereafter incurred under 
                part A of subtitle VII of title 49, United 
                States Code, which are attributable to 
                planning, research and development, 
                construction, or operation and maintenance of--
                           (i) air traffic control,
                           (ii) air navigation,
                           (iii) communications, or
                           (iv) supporting services,
                for the airway system; or
                   (C) for those portions of the administrative 
                expenses of the Department of Transportation 
                which are attributable to activities described 
                in subparagraph (A) or (B).
          Any reference in subparagraph (A) to an Act shall be 
        treated as a reference to such Act and the 
        corresponding provisions (if any) of title 49, United 
        States Code, as such Act and provisions were in effect 
        on the date of the enactment of the last Act referred 
        to in subparagraph (A).
          (2) Transfers from Airport and Airway Trust Fund on 
        account of certain refunds.--The Secretary of the 
        Treasury shall pay from time to time from the Airport 
        and Airway Trust Fund into the general fund of the 
        Treasury amounts equivalent to the amounts paid after 
        August 31, 1982, in respect of fuel used in aircraft, 
        under section 6420 (relating to amounts paid in respect 
        of gasoline used on farms, 6421 (relating to amounts 
        paid in respect of gasoline used for certain nonhighway 
        purposes), or 6427 (relating to fuels not used for 
        taxable purposes).
          (3) Transfers from the Airport and Airway Trust Fund 
        on account of certain section 34 credits.--The 
        Secretary of the Treasury shall pay from time to time 
        from the Airport and Airway Trust Fund into the general 
        fund of the Treasury amounts equivalent to the credits 
        allowed under section 34 with respect to fuel used 
        after August 31, 1982. Such amounts shall be 
        transferred on the basis of estimates by the Secretary 
        of the Treasury, and proper adjustments shall be made 
        in amounts subsequently transferred to the extent prior 
        estimates were in excess of or less than the credits 
        allowed.
          (4) Transfers for refunds and credits not to exceed 
        Trust Fund revenues attributable to fuel used.--The 
        amounts payable from the Airport and Airway Trust Fund 
        under paragraph (2) or (3) shall not exceed the amounts 
        required to be appropriated to such Trust Fund with 
        respect to fuel so used.
          (5) Transfers from airport and airway trust fund on 
        account of refunds of taxes on transportation by air.--
        The Secretary of the Treasury shall pay from time to 
        time from the Airport and Airway Trust Fund into the 
        general fund of the Treasury amounts equivalent to the 
        amounts paid after December 31, 1995, under section 
        6402 (relating to authority to make credits or refunds) 
        or section 6415 (relating to credits or refunds to 
        persons who collected certain taxes) in respect of 
        taxes under sections 4261 and 4271.
          (6) 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.
  (e) Special rules for transfers into Trust Fund.--
          (1) Increases in tax revenues before 1993 to remain 
        in general fund.--In the case of taxes imposed before 
        January 1, 1993, the amounts required to be 
        appropriated under paragraphs (1), (2), and (3) of 
        subsection (b) shall be determined without regard to 
        any increase in a rate of tax enacted by the Revenue 
        Reconciliation Act of 1990.
          (2) Certain taxes on alcohol mixtures to remain in 
        general fund.--For purposes of this section, the 
        amounts which would (but for this paragraph) be 
        required to be appropriated under paragraphs (1), (2), 
        and (3) of subsection (b) shall be reduced by--
                   (A) 0.6 cent per gallon in the case of taxes 
                imposed on any mixture at least 10 percent of 
                which is alcohol (as defined in section 
                4081(c)(3)) if any portion of such alcohol is 
                ethanol, and
                   (B) 0.67 cent per gallon in the case of fuel 
                used in producing a mixture described in 
                subparagraph (A).

              Federal Aviation Reauthorization Act of 1996

[SEC. 125. PERIOD OF APPLICABILITY OF AMENDMENTS.]

  [The amendments made by this subtitle shall ceaswe 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.]

                                
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