[[Page 110 STAT. 3213]]

  

  

Public Law 104-264
104th Congress

                                 An Act


 
 To amend title 49, United States Code, to reauthorize programs of the 
Federal Aviation Administration, and for other purposes. <<NOTE: Oct. 9, 
                         1996 -  [H.R. 3539]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Federal Aviation 
Reauthorization Act of 1996.>> 

SECTION 1. <<NOTE: 49 USC 40101 note.>> SHORT TITLE; TABLE OF CONTENTS.

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

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

                TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS

               Subtitle A--Reauthorization of FAA Programs

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

                Subtitle B--Airport Development Financing

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

          Subtitle C--Airport Improvement Program Modifications

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

                          TITLE II--FAA REFORM

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

                     Subtitle A--General Provisions

Sec. 221. Findings.
Sec. 222. Purposes.
Sec. 223. Regulation of civilian air transportation and related services 
           by the Federal Aviation Administration and Department of 
           Transportation.
Sec. 224. Regulations.
Sec. 225. Personnel and services.
Sec. 226. Contracts.

[[Page 110 STAT. 3214]]

Sec. 227. Facilities.
Sec. 228. Property.
Sec. 229. Transfers of funds from other Federal agencies.
Sec. 230. Management Advisory Council.

    Subtitle B--Federal Aviation Administration Streamlining Programs

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

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

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

                      TITLE III--AVIATION SECURITY

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

                        TITLE IV--AVIATION SAFETY

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

                      TITLE V--PILOT RECORD SHARING

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

                      TITLE VI--CHILD PILOT SAFETY

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

                      TITLE VII--FAMILY ASSISTANCE

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

                 TITLE VIII--AIRPORT REVENUE PROTECTION

Sec. 801. Short title.

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

               TITLE IX--METROPOLITAN WASHINGTON AIRPORTS

Sec. 901. Short title.
Sec. 902. Use of leased property.
Sec. 903. Board of Directors.
Sec. 904. Termination of Board of Review.
Sec. 905. Limitations.
Sec. 906. Use of Dulles Airport Access Highway.
Sec. 907. Effect of judicial order.
Sec. 908. Amendment of lease.
Sec. 909. Sense of the Senate.

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

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

          TITLE XI--FAA RESEARCH, ENGINEERING, AND DEVELOPMENT

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

                   TITLE XII--MISCELLANEOUS PROVISIONS

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

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

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

SEC. 3. <<NOTE: 49 USC 106 note.>> APPLICABILITY.

    (a) In General.--Except as otherwise specifically provided, this Act 
and the amendments made by this Act apply only to fiscal years beginning 
after September 30, 1996.
    (b) Limitation on Statutory Construction.--Nothing in this Act or 
any amendment made by this Act shall be construed as

[[Page 110 STAT. 3216]]

affecting funds made available for a fiscal year ending before October 
1, 1996.

                TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS

               Subtitle A--Reauthorization of FAA Programs

SEC. 101. AIRPORT IMPROVEMENT PROGRAM.

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

    (b) Obligational Authority.--Section 47104(c) is amended by striking 
``1996'' and inserting ``1998''.

SEC. 102. AIRWAY FACILITIES IMPROVEMENT PROGRAM.

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

    (b) Clerical Amendments.--Chapter 481 is amended--
            (1) by striking the heading for section 48101 and inserting 
        the following:

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

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

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

SEC. 103. FAA OPERATIONS.

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

    (c) Limitation on Obligating or Expending Amounts.--Section 48108(c) 
is amended by striking ``1996'' and inserting ``1998''.
    (d) Clerical Amendments.--Chapter 481 is amended--

[[Page 110 STAT. 3217]]

            (1) by striking the heading for section 48104 and inserting 
        the following:

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

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

``48104. Operations and maintenance.''.

                Subtitle B--Airport Development Financing

SEC. 121. APPORTIONMENTS.

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

[[Page 110 STAT. 3218]]

    (b) Amounts Apportioned to States.--Section 47114(d)(2) of such 
title is amended--
            (1) by striking ``12'' and inserting ``18.5'';
            (2) in subparagraph (A) by striking ``one'' and inserting 
        ``0.66'';
            (3) in each of subparagraphs (B) and (C) by striking 
        ``49.5'' and inserting ``49.67''; and
            (4) in each of subparagraphs (B) and (C) by striking 
        ``except'' the second place it appears and all that follows 
        through ``title,'' and inserting ``excluding primary airports 
        but including reliever and nonprimary commercial service 
        airports,''.

SEC. 122. DISCRETIONARY FUND.

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

[[Page 110 STAT. 3219]]

SEC. 123. USE OF APPORTIONED AMOUNTS.

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

    (c) Conforming Amendments.--Section 47117(e) is amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph (2).

SEC. 124. DESIGNATING CURRENT AND FORMER MILITARY AIRPORTS.

    (a) General Requirements.--Section 47118(a) is amended to read as 
follows:
    ``(a) General Requirements.--The Secretary of Transportation shall 
designate current or former military airports for which grants may be 
made under section 47117(e)(1)(B) of this title. The maximum number of 
airports bearing such designation at any time is 12. The Secretary may 
only so designate an airport (other than an airport so designated before 
August 24, 1994) if--
            ``(1) the airport is a former military installation closed 
        or realigned under--
                    ``(A) section 2687 of title 10;
                    ``(B) section 201 of the Defense Authorization 
                Amendments and Base Closure and Realignment Act (10 
                U.S.C. 2687 note); or
                    ``(C) section 2905 of the Defense Base Closure and 
                Realignment Act of 1990 (10 U.S.C. 2687 note); or

[[Page 110 STAT. 3220]]

            ``(2) the Secretary finds that such grants would--
                    ``(A) reduce delays at an airport with more than 
                20,000 hours of annual delays in commercial passenger 
                aircraft takeoffs and landings; or
                    ``(B) enhance airport and air traffic control system 
                capacity in a metropolitan area or reduce current and 
                projected flight delays.''.

    (b) Additional Designation Periods.--Section 47118(d) is amended by 
striking ``designation.'' and inserting ``designation, and for 
subsequent 5-fiscal-year periods if the Secretary determines that the 
airport satisfies the designation criteria under subsection (a) at the 
beginning of each such subsequent 5-fiscal-year period.''.
    (c) Parking Lots, Fuel Farms, Utilities, and Hangars.--Section 
47118(f) is amended--
            (1) in the heading by striking ``and Utilities'' and 
        inserting ``Utilities, and Hangars'';
            (2) by striking ``for the fiscal years ending September 30, 
        1993-1996,'' and inserting ``for fiscal years beginning after 
        September 30, 1992,''; and
            (3) by striking ``and utilities'' and inserting ``utilities, 
        and hangars''.

    (d) 2-Year Extension.--Section 47117(e)(1)(B), as redesignated by 
section 123(b) of this Act, is amended by striking ``and 1996,'' and 
inserting ``1996, 1997, and 1998''.

SEC. 125. <<NOTE: 49 USC 47114 note.>> PERIOD OF APPLICABILITY OF 
            AMENDMENTS.

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

          Subtitle C--Airport Improvement Program Modifications

SEC. 141. INTERMODAL PLANNING.

    Section 47101(g) is amended to read as follows:
    ``(g) Intermodal Planning.--To carry out the policy of subsection 
(a)(5) of this section, the Secretary of Transportation shall take each 
of the following actions:
            ``(1) Coordination in development of airport plans and 
        programs.--Cooperate with State and local officials in 
        developing airport plans and programs that are based on overall 
        transportation needs. The airport plans and programs shall be 
        developed in coordination with other transportation planning and 
        considering comprehensive long-range land-use plans and overall 
        social, economic, environmental, system performance, and energy 
        conservation objectives. The process of developing airport plans 
        and programs shall be continuing, cooperative, and comprehensive 
        to the degree appropriate to the complexity of the 
        transportation problems.
            ``(2) Goals for airport master and system plans.--Encourage 
        airport sponsors and State and local officials to develop 
        airport master plans and airport system plans that--
                    ``(A) foster effective coordination between aviation 
                planning and metropolitan planning;

[[Page 110 STAT. 3221]]

                    ``(B) include an evaluation of aviation needs within 
                the context of multimodal planning; and
                    ``(C) are integrated with metropolitan plans to 
                ensure that airport development proposals include 
                adequate consideration of land use and ground 
                transportation access.
            ``(3) Representation of airport operators on mpo's.--
        Encourage metropolitan planning organizations, particularly in 
        areas with populations greater than 200,000, to establish 
        membership positions for airport operators.''.

SEC. 142. PAVEMENT MAINTENANCE PROGRAM.

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

``Sec. 47132. Pavement maintenance

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

    (c) Conforming Amendment.--The table of sections for such subchapter 
is amended by inserting after the item relating to section 47131 the 
following:

``47132. Pavement maintenance.''.

SEC. 143. ACCESS TO AIRPORTS BY INTERCITY BUSES.

    Section 47107(a) is amended--
            (1) by striking ``and'' at the end of paragraph (18);
            (2) by striking the period at the end of paragraph (19) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(20) the airport owner or operator will permit, to the 
        maximum extent practicable, intercity buses or other modes of 
        transportation to have access to the airport, but the sponsor

[[Page 110 STAT. 3222]]

        does not have any obligation under this paragraph, or because of 
        it, to fund special facilities for intercity bus service or for 
        other modes of transportation.''.

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

    (a) Cost Reimbursement.--Section 47110(b)(2)(C) is amended to read 
as follows:
            ``(C) if the Government's share is paid only with amounts 
        apportioned under paragraphs (1) and (2) of section 47114(c) of 
        this title and if the cost is incurred--
                    ``(i) after September 30, 1996;
                    ``(ii) before a grant agreement is executed for the 
                project; and
                    ``(iii) in accordance with an airport layout plan 
                approved by the Secretary and with all statutory and 
                administrative requirements that would have been 
                applicable to the project if the project had been 
                carried out after the grant agreement had been 
                executed;''.

    (b) Use of Discretionary Funds.--Section 47110 is amended by adding 
at the end the following:
    ``(g) Use of Discretionary Funds.--A project for which cost 
reimbursement is provided under subsection (b)(2)(C) shall not receive 
priority consideration with respect to the use of discretionary funds 
made available under section 47115 of this title even if the amounts 
made available under paragraphs (1) and (2) of section 47114(c) are not 
sufficient to cover the Government's share of the cost of project.''.

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

    (a) Selection of Projects for Grants.--Section 47115(d) is amended--
            (1) by striking ``; and'' at the end of paragraph (2) and 
        inserting the following: ``, including, in the case of a project 
        at a reliever airport, the number of operations projected to be 
        diverted from a primary airport to the reliever airport as a 
        result of the project, as well as the cost savings projected to 
        be realized by users of the local airport system;'';
            (2) by striking the period at the end of paragraph (3) and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(4) the airport improvement priorities of the States, and 
        regional offices of the Administration, to the extent such 
        priorities are not in conflict with paragraphs (1) and (2);
            ``(5) the projected growth in the number of passengers that 
        will be using the airport at which the project will be carried 
        out; and
            ``(6) any increase in the number of passenger boardings in 
        the preceding 12-month period at the airport at which the 
        project will be carried out, with priority consideration to be 
        given to projects at airports at which the number of passenger 
        boardings increased by at least 20 percent as compared to the 
        number of passenger boardings in the 12-month period preceding 
        such period.''.

    (b) Priority for Letters of Intent.--Section 47115, as amended by 
section 122 of this Act, is further amended by adding at the end the 
following:

[[Page 110 STAT. 3223]]

    ``(h) Priority for Letters of Intent.--In making grants in a fiscal 
year with funds made available under this section, the Secretary shall 
fulfill intentions to obligate under section 47110(e).''.

SEC. 146. SMALL AIRPORT FUND.

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

SEC. 147. STATE BLOCK GRANT PROGRAM.

    (a) Participating States.--Section 47128 is amended--
            (1) in subsection (a) by striking ``7 qualified States'' and 
        inserting ``8 qualified States for fiscal year 1997 and 9 
        qualified States for each fiscal year thereafter'';
            (2) in subsection (b)(1)--
                    (A) by striking ``(1)''; and
                    (B) by redesignating subparagraphs (A) through (E) 
                as paragraphs (1) through (5), respectively; and
            (3) by striking subsection (b)(2).

    (b) Use of State Priority System.--Section 47128(c) is amended--
            (1) by striking ``(b)(1)(B) or (C)'' and inserting ``(b)(2) 
        or (b)(3)''; and
            (2) by adding at the end the following: ``In carrying out 
        this subsection, the Secretary shall permit a State to use the 
        priority system of the State if such system is not inconsistent 
        with the national priority system.''.

    (c) Repeal of Expiration Date.--
            (1) In general.--Section 47128 is amended--
                    (A) by striking ``pilot'' in the section heading;
                    (B) by striking ``pilot'' in subsection (a); and
                    (C) by striking subsection (d).
            (2) Conforming amendment.--The table of sections for chapter 
        471 is amended by striking the item relating to section 47128 
        and inserting the following:

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

SEC. 148. <<NOTE: 49 USC 47101 note.>> INNOVATIVE FINANCING TECHNIQUES.

    (a) In General.--The Secretary of Transportation is authorized to 
carry out a demonstration program under which the Secretary may approve 
applications under subchapter I of chapter 471 of title 49, United 
States Code, for not more than 10 projects for which grants received 
under such subchapter may be used to implement innovative financing 
techniques.
    (b) Purpose.--The purpose of the demonstration program shall be to 
provide information on the use of innovative financing techniques for 
airport development projects to Congress and the National Civil Aviation 
Review Commission.
    (c) Limitation.--In no case shall the implementation of an 
innovative financing technique under the demonstration program result in 
a direct or indirect guarantee of any airport debt instrument by the 
Federal Government.
    (d) Innovative Financing Technique Defined.--In this section, the 
term ``innovative financing technique'' shall be limited to the 
following:

[[Page 110 STAT. 3224]]

            (1) Payment of interest.
            (2) Commercial bond insurance and other credit enhancement 
        associated with airport bonds for eligible airport development.
            (3) Flexible non-Federal matching requirements.

    (e) Expiration of Authority.--The authority of the Secretary to 
carry out the demonstration program shall expire on September 30, 1998.

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

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

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

    ``(a) Submission of Applications.--If a sponsor intends to sell or 
lease a general aviation airport or lease any other type of airport for 
a long term to a person (other than a public agency), the sponsor and 
purchaser or lessee may apply to the Secretary of Transportation for 
exemptions under this section.
    ``(b) Approval of Applications.--The Secretary may approve, with 
respect to not more than 5 airports, applications submitted under 
subsection (a) granting exemptions from the following provisions:
            ``(1) Use of revenues.--
                    ``(A) In general.--The Secretary may grant an 
                exemption to a sponsor from the provisions of sections 
                47107(b) and 47133 of this title (and any other law, 
                regulation, or grant assurance) to the extent necessary 
                to permit the sponsor to recover from the sale or lease 
                of the airport such amount as may be approved--
                          ``(i) by at least 65 percent of the air 
                      carriers serving the airport; and
                          ``(ii) by air carriers whose aircraft landing 
                      at the airport during the preceding calendar year 
                      had a total landed weight during the preceding 
                      calendar year of at least 65 percent of the total 
                      landed weight of all aircraft landing at the 
                      airport during such year.
                    ``(B) Landed weight defined.--
                In <<NOTE: Regulations.>> this paragraph, the term 
                `landed weight' means the weight of aircraft 
                transporting passengers or cargo, or both, in 
                intrastate, interstate, and foreign air transportation, 
                as the Secretary determines under regulations the 
                Secretary prescribes.
            ``(2) Repayment requirements.--The Secretary may grant an 
        exemption to a sponsor from the provisions of sections 47107 and 
        47152 of this title (and any other law, regulation, or grant 
        assurance) to the extent necessary to waive any obligation of 
        the sponsor to repay to the Federal Government any grants, or to 
        return to the Federal Government any property, received by the 
        airport under this title, the Airport and Airway Improvement Act 
        of 1982, or any other law.
            ``(3) Compensation from airport operations.--The Secretary 
        may grant an exemption to a purchaser or lessee from the 
        provisions of sections 47107(b) and 47133 of this title (and any 
        other law, regulation, or grant assurance) to the extent

[[Page 110 STAT. 3225]]

        necessary to permit the purchaser or lessee to earn compensation 
        from the operations of the airport.

    ``(c) Terms and Conditions.--The Secretary may approve an 
application under subsection (b) only if the Secretary finds that the 
sale or lease agreement includes provisions satisfactory to the 
Secretary to ensure the following:
            ``(1) The airport will continue to be available for public 
        use on reasonable terms and conditions and without unjust 
        discrimination.
            ``(2) The operation of the airport will not be interrupted 
        in the event that the purchaser or lessee becomes insolvent or 
        seeks or becomes subject to any State or Federal bankruptcy, 
        reorganization, insolvency, liquidation, or dissolution 
        proceeding or any petition or similar law seeking the 
        dissolution or reorganization of the purchaser or lessee or the 
        appointment of a receiver, trustee, custodian, or liquidator for 
        the purchaser or lessee or a substantial part of the purchaser 
        or lessee's property, assets, or business.
            ``(3) The purchaser or lessee will maintain, improve, and 
        modernize the facilities of the airport through capital 
        investments and will submit to the Secretary a plan for carrying 
        out such maintenance, improvements, and modernization.
            ``(4) Every fee of the airport imposed on an air carrier on 
        the day before the date of the lease of the airport will not 
        increase faster than the rate of inflation unless a higher 
        amount is approved--
                    ``(A) by at least 65 percent of the air carriers 
                serving the airport; and
                    ``(B) by air carriers whose aircraft landing at the 
                airport during the preceding calendar year had a total 
                landed weight during the preceding calendar year of at 
                least 65 percent of the total landed weight of all 
                aircraft landing at the airport during such year.
            ``(5) The percentage increase in fees imposed on general 
        aviation aircraft at the airport will not exceed the percentage 
        increase in fees imposed on air carriers at the airport.
            ``(6) Safety and security at the airport will be maintained 
        at the highest possible levels.
            ``(7) The adverse effects of noise from operations at the 
        airport will be mitigated to the same extent as at a public 
        airport.
            ``(8) Any adverse effects on the environment from airport 
        operations will be mitigated to the same extent as at a public 
        airport.
            ``(9) Any collective bargaining agreement that covers 
        employees of the airport and is in effect on the date of the 
        sale or lease of the airport will not be abrogated by the sale 
        or lease.

    ``(d) Participation of Certain Airports.--
            ``(1) General aviation airports.--If the Secretary approves 
        under subsection (b) applications with respect to 5 airports, 
        one of the airports must be a general aviation airport.
            ``(2) Large hub airports.--The Secretary may not approve 
        under subsection (b) more than 1 application submitted by an 
        airport that had 1 percent or more of the total passenger 
        boardings (as defined in section 47102) in the United States in 
        the preceding calendar year.

[[Page 110 STAT. 3226]]

    ``(e) Required Finding That Approval Will Not Result in Unfair 
Methods of Competition.--The Secretary may approve an application under 
subsection (b) only if the Secretary finds that the approval will not 
result in unfair and deceptive practices or unfair methods of 
competition.
    ``(f) Interests of General Aviation Users.--In approving an 
application of an airport under this section, the Secretary shall ensure 
that the interests of general aviation users of the airport are not 
adversely affected.
    ``(g) Passenger Facility Fees; Apportionments; Service Charges.--
Notwithstanding that the sponsor of an airport receiving an exemption 
under subsection (b) is not a public agency, the sponsor shall not be 
prohibited from--
            ``(1) imposing a passenger facility fee under section 40117 
        of this title;
            ``(2) receiving apportionments under section 47114 of this 
        title; or
            ``(3) collecting reasonable rental charges, landing fees, 
        and other service charges from aircraft operators under section 
        40116(e)(2) of this title.

    ``(h) Effectiveness of Exemptions.--An exemption granted under 
subsection (b) shall continue in effect only so long as the facilities 
sold or leased continue to be used for airport purposes.
    ``(i) Revocation of Exemptions.--The Secretary may revoke an 
exemption issued to a purchaser or lessee of an airport under subsection 
(b)(3) if, after providing the purchaser or lessee with notice and an 
opportunity to be heard, the Secretary determines that the purchaser or 
lessee has knowingly violated any of the terms specified in subsection 
(c) for the sale or lease of the airport.
    ``(j) Nonapplication of Provisions to Airports Owned by Public 
Agencies.--The provisions of this section requiring the approval of air 
carriers in determinations concerning the use of revenues, and 
imposition of fees, at an airport shall not be extended so as to apply 
to any airport owned by a public agency that is not participating in the 
program established by this section.
    ``(k) Audits.--The Secretary may conduct periodic audits of the 
financial records and operations of an airport receiving an exemption 
under this section.
    ``(l) Report.--Not later than 2 years after the date of the initial 
approval of an application under this section, the Secretary shall 
transmit to the Committee on Transportation and Infrastructure of the 
House of Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report on implementation of the program 
under this section.
    ``(m) General Aviation Airport Defined.--In this section, the term 
`general aviation airport' means an airport that is not a commercial 
service airport.''.
            (2) Conforming amendment.--The table of sections for such 
        chapter is amended by inserting after the item relating to 
        section 47133, as added by section 804 of this Act, the 
        following:

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

    (b) Taxation.--Section 40116(b) is amended--
            (1) by striking ``a State or'' and inserting ``a State, a''; 
        and

[[Page 110 STAT. 3227]]

            (2) by inserting after ``of a State'' the following: ``, and 
        any person that has purchased or leased an airport under section 
        47134 of this title''.

    (c) Federal Share.--Section 47109(a) is amended--
            (1) by striking ``and'' at the end of paragraph (1);
            (2) by striking the period at the end of paragraph (2) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(3) 40 percent for a project funded by the Administrator 
        from the discretionary fund under section 47115 at an airport 
        receiving an exemption under section 47134.''.

    (d) Resolution of Airport-Air Carrier Disputes Concerning Airport 
Fees.--Section 47129(a) is amended by adding at the end the following:
            ``(4) Fees imposed by privately-owned airports.--In 
        evaluating the reasonableness of a fee imposed by an airport 
        receiving an exemption under section 47134 of this title, the 
        Secretary shall consider whether the airport has complied with 
        section 47134(c)(4).''.

    TITLE II--FAA <<NOTE: Air Traffic Management System Performance 
Improvement Act of 1996.>> REFORM

SEC. 201. <<NOTE: 49 USC 40101 note.>> SHORT TITLE.

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

SEC. 202. <<NOTE: 49 USC 106 note.>> DEFINITIONS.

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

SEC. 203. <<NOTE: 49 USC 106 note.>> EFFECTIVE DATE.

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

                     Subtitle A--General Provisions

SEC. 221. <<NOTE: 49 USC 106 note.>> FINDINGS.

    Congress finds the following:
            (1) In many respects the Administration is a unique agency, 
        being one of the few non-defense government agencies that 
        operates 24 hours a day, 365 days of the year, while continuing 
        to rely on outdated technology to carry out its responsibilities 
        for a state-of-the-art industry.
            (2) Until January 1, 1996, users of the air transportation 
        system paid 70 percent of the budget of the Administration, with 
        the remaining 30 percent coming from the General Fund. The 
        General Fund contribution over the years is one measure of the 
        benefit received by the general public, military, and other 
        users of Administration's services.

[[Page 110 STAT. 3228]]

            (3) The Administration must become a more efficient, 
        effective, and different organization to meet future challenges.
            (4) The need to balance the Federal budget means that it may 
        become more and more difficult to obtain sufficient General Fund 
        contributions to meet the Administration's future budget needs.
            (5) Congress must keep its commitment to the users of the 
        national air transportation system by seeking to spend all 
        moneys collected from them each year and deposited into the 
        Airport and Airway Trust Fund. Existing surpluses representing 
        past receipts must also be spent for the purposes for which such 
        funds were collected.
            (6) The aviation community and the employees of the 
        Administration must come together to improve the system. The 
        Administration must continue to recognize who its customers are 
        and what their needs are, and to design and redesign the system 
        to make safety improvements and increase productivity.
            (7) The Administration projects that commercial operations 
        will increase by 18 percent and passenger traffic by 35 percent 
        by the year 2002. Without effective airport expansion and system 
        modernization, these needs cannot be met.
            (8) Absent significant and meaningful reform, future 
        challenges and needs cannot be met.
            (9) The Administration must have a new way of doing 
        business.
            (10) There is widespread agreement within government and the 
        aviation industry that reform of the Administration is essential 
        to safely and efficiently accommodate the projected growth of 
        aviation within the next decade.
            (11) To the extent that Congress determines that certain 
        segments of the aviation community are not required to pay all 
        of the costs of the government services which they require and 
        benefits which they receive, Congress should appropriate the 
        difference between such costs and any receipts received from 
        such segment.
            (12) Prior to the imposition of any new charges or user fees 
        on segments of the industry, an independent review must be 
        performed to assess the funding needs and assumptions for 
        operations, capital spending, and airport infrastructure.
            (13) An independent, thorough, and complete study and 
        assessment must be performed of the costs to the Administration 
        and the costs driven by each segment of the aviation system for 
        safety and operational services, including the use of the air 
        traffic control system and the Nation's airports.
            (14) Because the Administration is a unique Federal entity 
        in that it is a participant in the daily operations of an 
        industry, and because the national air transportation system 
        faces significant problems without significant changes, the 
        Administration has been authorized to change the Federal 
        procurement and personnel systems to ensure that the 
        Administration has the ability to keep pace with new technology 
        and is able to match resources with the real personnel needs of 
        the Administration.
            (15) The existing budget system does not allow for long-term 
        planning or timely acquisition of technology by the 
        Administration.

[[Page 110 STAT. 3229]]

            (16) Without reforms in the areas of procurement, personnel, 
        funding, and governance, the Administration will continue to 
        experience delays and cost overruns in its major modernization 
        programs and needed improvements in the performance of the air 
        traffic management system will not occur.
            (17) All reforms should be designed to help the 
        Administration become more responsive to the needs of its 
        customers and maintain the highest standards of safety.

SEC. 222. <<NOTE: 49 USC 106 note.>> PURPOSES.

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

SEC. 223. REGULATION OF CIVILIAN AIR TRANSPORTATION AND RELATED SERVICES 
            BY THE FEDERAL AVIATION ADMINISTRATION AND DEPARTMENT OF 
            TRANSPORTATION.

    (a) In General.--Section 106 is amended--
            (1) by striking ``The Administrator'' in subsection (b) and 
        inserting ``Except as provided in subsection (f) or in other 
        provisions of law, the Administrator''; and
            (2) in subsection (f)--
                    (A) by striking ``(f) The Secretary'' and inserting 
                the following:

    ``(f) Authority of the Secretary and the Administrator.--
            ``(1) Authority of the secretary.--Except as provided in 
        paragraph (2), the Secretary'';
                    (B) in subsection (f)(1), as so designated--
                          (i) by moving the remainder of the text 2 ems 
                      to the right;
                          (ii) by striking ``The Secretary may not'' and 
                      inserting ``Neither the Secretary nor the 
                      Administrator may''; and
                          (iii) by striking ``nor'' and inserting 
                      ``or''; and
                    (C) by adding at the end the following:
            ``(2) Authority of the administrator.--The Administrator--
                    ``(A) is the final authority for carrying out all 
                functions, powers, and duties of the Administration 
                relating to--
                          ``(i) the appointment and employment of all 
                      officers and employees of the Administration 
                      (other than Presidential and political 
                      appointees);
                          ``(ii) the acquisition and maintenance of 
                      property and equipment of the Administration;
                          ``(iii) except as otherwise provided in 
                      paragraph (3), the promulgation of regulations, 
                      rules, orders,

[[Page 110 STAT. 3230]]

                      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) Definition of political appointee.--For purposes of 
        this subsection, the term `political appointee' means any 
        individual who--
                    ``(A) is employed in a position listed in sections 
                5312 through 5316 of title 5 (relating to the Executive 
                Schedule);
                    ``(B) is a limited term appointee, limited emergency 
                appointee, or noncareer appointee in the Senior 
                Executive Service, as defined under paragraphs (5), (6), 
                and (7), respectively, of section 3132(a) of title 5; or
                    ``(C) is employed in a position in the executive 
                branch of the Government of a confidential or policy-
                determining character under schedule C of subpart C of 
                part 213 of title 5 of the Code of Federal 
                Regulations.''.

    (b) Preservation <<NOTE: 49 USC 106 note.>> of Existing Authority.--
Nothing in this title or the amendments made by this title limits any 
authority granted to the Administrator by statute or by delegation that 
was in effect on the day before the date of the enactment of this Act.

SEC. 224. REGULATIONS.

    Section 106(f), as amended by section 223 of this Act, is further 
amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following:
            ``(3) Regulations.--
                    ``(A) In general.--In the performance of the 
                functions of the Administrator and the Administration, 
                the Administrator is authorized to issue, rescind, and 
                revise such regulations as are necessary to carry out 
                those functions. The issuance of such regulations shall 
                be governed by the provisions of chapter 5 of title 5. 
                The Administrator shall act upon all petitions for 
                rulemaking no later than 6 months after the date such 
                petitions are filed by dismissing such petitions, by 
                informing the petitioner of an intention to dismiss, or 
                by issuing a notice of proposed rulemaking

[[Page 110 STAT. 3231]]

                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

[[Page 110 STAT. 3232]]

                burdensome regulation issued by the Administrator after 
                such date of enactment beginning not later than 3 years 
                after the effective date of the regulation to determine 
                if the cost assumptions were accurate, the benefit of 
                the regulations, and the need to continue such 
                regulations in force in their present form.
                    ``(ii) The Administrator may identify for review 
                under the criteria set forth in clause (i) unusually 
                burdensome regulations that were issued before the date 
                of the enactment of the Air Traffic Management System 
                Performance Improvement Act of 1996 and that have been 
                in force for more than 3 years.
                    ``(iii) For purposes of this subparagraph, the term 
                `unusually burdensome regulation' means any regulation 
                that results in the annual expenditure by State, local, 
                and tribal governments in the aggregate, or by the 
                private sector, of $25,000,000 or more (adjusted 
                annually for inflation beginning with the year following 
                the date of the enactment of the Air Traffic Management 
                System Performance Act of 1996) in any year.
                    ``(iv) The periodic review of regulations may be 
                performed by advisory committees and the Management 
                Advisory Council established under subsection (p).''.

SEC. 225. PERSONNEL AND SERVICES.

    Section 106 is amended by adding at the end the following:
    ``(l) Personnel and Services.--
            ``(1) Officers and employees.--Except as provided in section 
        40122(a) of this title and section 347 of Public Law 104-50, the 
        Administrator is authorized, in the performance of the functions 
        of the Administrator, to appoint, transfer, and fix the 
        compensation of such officers and employees, including 
        attorneys, as may be necessary to carry out the functions of the 
        Administrator and the Administration. In fixing compensation and 
        benefits of officers and employees, the Administrator shall not 
        engage in any type of bargaining, except to the extent provided 
        for in section 40122(a), nor shall the Administrator be bound by 
        any requirement to establish such compensation or benefits at 
        particular levels.
            ``(2) Experts and consultants.--The Administrator is 
        authorized to obtain the services of experts and consultants in 
        accordance with section 3109 of title 5.
            ``(3) Transportation and per diem expenses.--The 
        Administrator is authorized to pay transportation expenses, and 
        per diem in lieu of subsistence expenses, in accordance with 
        chapter 57 of title 5.
            ``(4) Use of personnel from other agencies.--The 
        Administrator is authorized to utilize the services of personnel 
        of any other Federal agency (as such term is defined under 
        section 551(1) of title 5).
            ``(5) Voluntary services.--
                    ``(A) General rule.--In exercising the authority to 
                accept gifts and voluntary services under section 326 of 
                this title, and without regard to section 1342 of title 
                31, the Administrator may not accept voluntary and 
                uncompensated services if such services are used to 
                displace Federal

[[Page 110 STAT. 3233]]

                employees employed on a full-time, part-time, or 
                seasonal basis.
                    ``(B) Incidental expenses.--The Administrator is 
                authorized to provide for incidental expenses, including 
                transportation, lodging, and subsistence, for volunteers 
                who provide voluntary services under this subsection.
                    ``(C) Limited treatment as federal employees.--An 
                individual who provides voluntary services under this 
                subsection shall not be considered a Federal employee 
                for any purpose other than for purposes of chapter 81 of 
                title 5, relating to compensation for work injuries, and 
                chapter 171 of title 28, relating to tort claims.''.

SEC. 226. CONTRACTS.

    Section 106(l), as added by section 225 of this Act, is further 
amended by adding at the end the following:
            ``(6) Contracts.--The Administrator is authorized to enter 
        into and perform such contracts, leases, cooperative agreements, 
        or other transactions as may be necessary to carry out the 
        functions of the Administrator and the Administration. The 
        Administrator may enter into such contracts, leases, cooperative 
        agreements, and other transactions with any Federal agency (as 
        such term is defined in section 551(1) of title 5) or any 
        instrumentality of the United States, any State, territory, or 
        possession, or political subdivision thereof, any other 
        governmental entity, or any person, firm, association, 
        corporation, or educational institution, on such terms and 
        conditions as the Administrator may consider appropriate.''.

SEC. 227. FACILITIES.

    Section 106, as amended by section 225 of this Act, is further 
amended by adding at the end the following:
    ``(m) Cooperation by Administrator.--With the consent of appropriate 
officials, the Administrator may, with or without reimbursement, use or 
accept the services, equipment, personnel, and facilities of any other 
Federal agency (as such term is defined in section 551(1) of title 5) 
and any other public or private entity. The Administrator may also 
cooperate with appropriate officials of other public and private 
agencies and instrumentalities concerning the use of services, 
equipment, personnel, and facilities. The head of each Federal agency 
shall cooperate with the Administrator in making the services, 
equipment, personnel, and facilities of the Federal agency available to 
the Administrator. The head of a Federal agency is authorized, 
notwithstanding any other provision of law, to transfer to or to receive 
from the Administration, without reimbursement, supplies and equipment 
other than administrative supplies or equipment.''.

SEC. 228. PROPERTY.

    Section 106, as amended by section 227 of this Act, is further 
amended by adding at the end the following:
    ``(n) Acquisition.--
            ``(1) In general.--The Administrator is authorized--
                    ``(A) to acquire (by purchase, lease, condemnation, 
                or otherwise), construct, improve, repair, operate, and 
                maintain--
                          ``(i) air traffic control facilities and 
                      equipment;
                          ``(ii) research and testing sites and 
                      facilities; and

[[Page 110 STAT. 3234]]

                          ``(iii) such other real and personal property 
                      (including office space and patents), or any 
                      interest therein, within and outside the 
                      continental United States as the Administrator 
                      considers necessary;
                    ``(B) to lease to others such real and personal 
                property; and
                    ``(C) to provide by contract or otherwise for eating 
                facilities and other necessary facilities for the 
                welfare of employees of the Administration at the 
                installations of the Administration, and to acquire, 
                operate, and maintain equipment for these facilities.
            ``(2) Title.--Title to any property or interest therein 
        acquired pursuant to this subsection shall be held by the 
        Government of the United States.''.

SEC. 229. TRANSFERS OF FUNDS FROM OTHER FEDERAL AGENCIES.

    Section 106, as amended by section 228 of this Act, is further 
amended by adding at the end the following:
    ``(o) Transfers of Funds.--The Administrator is authorized to accept 
transfers of unobligated balances and unexpended balances of funds 
appropriated to other Federal agencies (as such term is defined in 
section 551(1) of title 5) to carry out functions transferred by law to 
the Administrator or functions transferred pursuant to law to the 
Administrator on or after the date of the enactment of the Air Traffic 
Management System Performance Improvement Act of 1996.''.

SEC. 230. MANAGEMENT ADVISORY COUNCIL.

    Section 106, as amended by section 229 of this Act, is further 
amended by adding at the end the following:
    ``(p) Management Advisory Council.--
            ``(1) Establishment.--Within 3 months after the date of the 
        enactment of the Air Traffic Management System Performance 
        Improvement Act of 1996, the Administrator shall establish an 
        advisory council which shall be known as the Federal Aviation 
        Management Advisory Council (in this subsection referred to as 
        the `Council'). With respect to Administration management, 
        policy, spending, funding, and regulatory matters affecting the 
        aviation industry, the Council may submit comments, recommended 
        modifications, and dissenting views to the Administrator. The 
        Administrator shall include in any submission to Congress, the 
        Secretary, or the general public, and in any submission for 
        publication in the Federal Register, a description of the 
        comments, recommended modifications, and dissenting views 
        received from the Council, together with the reasons for any 
        differences between the views of the Council and the views or 
        actions of the Administrator.
            ``(2) Membership.--The Council shall consist of 15 members, 
        who shall consist of--
                    ``(A) a designee of the Secretary of Transportation;
                    ``(B) a designee of the Secretary of Defense; and
                    ``(C) 13 members representing aviation interests, 
                appointed by the President by and with the advice and 
                consent of the Senate.
            ``(3) Qualifications.--No member appointed under paragraph 
        (2)(C) may serve as an officer or employee of the United States 
        Government while serving as a member of the Council.
            ``(4) Functions.--

[[Page 110 STAT. 3235]]

                    ``(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.

[[Page 110 STAT. 3236]]

                    ``(D) Detail of personnel from the administration.--
                The Administrator shall make available to the Council 
                such staff, information, and administrative services and 
                assistance as may reasonably be required to enable the 
                Council to carry out its responsibilities under this 
                subsection.''.

    Subtitle B--Federal Aviation Administration Streamlining Programs

SEC. 251. <<NOTE: 49 USC 40110 note.>> REVIEW OF ACQUISITION MANAGEMENT 
            SYSTEM.

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

SEC. 252. AIR TRAFFIC CONTROL MODERNIZATION REVIEWS.

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

``Sec. 40121. Air traffic control modernization reviews

    ``(a) Required Terminations of Acquisitions.--The Administrator of 
the Federal Aviation Administration shall terminate any acquisition 
program initiated after the date of the enactment of the Air Traffic 
Management System Performance Improvement Act of 1996 and funded under 
the Facilities and Equipment account that--
            ``(1) is more than 50 percent over the cost goal established 
        for the program;
            ``(2) fails to achieve at least 50 percent of the 
        performance goals established for the program; or
            ``(3) is more than 50 percent behind schedule as determined 
        in accordance with the schedule goal established for the 
        program.

    ``(b) Authorized Termination of Acquisition Programs.--The 
Administrator shall consider terminating, under the authority of 
subsection (a), any substantial acquisition program that--
            ``(1) is more than 10 percent over the cost goal established 
        for the program;
            ``(2) fails to achieve at least 90 percent of the 
        performance goals established for the program; or
            ``(3) is more than 10 percent behind schedule as determined 
        in accordance with the schedule goal established for the 
        program.

    ``(c) Exceptions and Report.--
            ``(1) Continuance of program, etc.--Notwithstanding 
        subsection (a), the Administrator may continue an acquisitions 
        program required to be terminated under subsection (a) if the 
        Administrator determines that termination would be inconsistent 
        with the development or operation of the national air 
        transportation system in a safe and efficient manner.
            ``(2) Department of defense.--The Department of Defense 
        shall have the same exemptions from acquisition laws as are 
        waived by the Administrator under section 348(b) of Public

[[Page 110 STAT. 3237]]

        Law 104-50 when engaged in joint actions to improve or replenish 
        the national air traffic control system. The Administration may 
        acquire real property, goods, and services through the 
        Department of Defense, or other appropriate agencies, but is 
        bound by the acquisition laws and regulations governing those 
        cases.
            ``(3) Report.--If the Administrator makes a determination 
        under paragraph (1), the Administrator shall transmit a copy of 
        the determination, together with a statement of the basis for 
        the determination, to the Committees on Appropriations of the 
        Senate and the House of Representatives, the Committee on 
        Commerce, Science, and Transportation of the Senate, and the 
        Committee on Transportation and Infrastructure of the House of 
        Representatives.''.

SEC. 253. FEDERAL AVIATION ADMINISTRATION PERSONNEL MANAGEMENT SYSTEM.

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

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

    ``(a) In General.--
            ``(1) Consultation and negotiation.--In developing and 
        making changes to the personnel management system initially 
        implemented by the Administrator of the Federal Aviation 
        Administration on April 1, 1996, the Administrator shall 
        negotiate with the exclusive bargaining representatives of 
        employees of the Administration certified under section 7111 of 
        title 5 and consult with other employees of the Administration.
            ``(2) Mediation.--If the Administrator does not reach an 
        agreement under paragraph (1) with the exclusive bargaining 
        representatives, the services of the Federal Mediation and 
        Conciliation Service shall be used to attempt to reach such 
        agreement. If the services of the Federal Mediation and 
        Conciliation Service do not lead to an agreement, the 
        Administrator's proposed change to the personnel management 
        system shall not take effect until 60 days have elapsed after 
        the Administrator has transmitted the proposed change, along 
        with the objections of the exclusive bargaining representatives 
        to the change, and the reasons for such objections, to Congress.
            ``(3) Cost savings and productivity goals.--The 
        Administration and the exclusive bargaining representatives of 
        the employees shall use every reasonable effort to find cost 
        savings and to increase productivity within each of the affected 
        bargaining units.
            ``(4) Annual budget discussions.--The Administration and the 
        exclusive bargaining representatives of the employees shall meet 
        annually for the purpose of finding additional cost savings 
        within the Administration's annual budget as it applies to each 
        of the affected bargaining units and throughout the agency.

    ``(b) Expert Evaluation.--On the date that is 3 years after the 
personnel management system is implemented, the Administration shall 
employ outside experts to provide an independent evaluation of the 
effectiveness of the system within 3 months after such date. For this 
purpose, the Administrator may utilize the services

[[Page 110 STAT. 3238]]

of experts and consultants under section 3109 of title 5 without regard 
to the limitation imposed by the last sentence of section 3109(b) of 
such title, and may contract on a sole source basis, notwithstanding any 
other provision of law to the contrary.
    ``(c) Pay Restriction.--No officer or employee of the Administration 
may receive an annual rate of basic pay in excess of the annual rate of 
basic pay payable to the Administrator.
    ``(d) Ethics.--The Administration shall be subject to Executive 
Order No. 12674 and regulations and opinions promulgated by the Office 
of Government Ethics, including those set forth in section 2635 of title 
5 of the Code of Federal Regulations.
    ``(e) Employee Protections.--Until July 1, 1999, basic wages 
(including locality pay) and operational differential pay provided 
employees of the Administration shall not be involuntarily adversely 
affected by reason of the enactment of this section, except for 
unacceptable performance or by reason of a reduction in force or 
reorganization or by agreement between the Administration and the 
affected employees' exclusive bargaining representative.
    ``(f) Labor-Management Agreements.--Except as otherwise provided by 
this title, all labor-management agreements covering employees of the 
Administration that are in effect on the effective date of the Air 
Traffic Management System Performance Improvement Act of 1996 shall 
remain in effect until their normal expiration date, unless the 
Administrator and the exclusive bargaining representative agree to the 
contrary.''.

SEC. 254. CONFORMING AMENDMENT.

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

``40121. Air traffic control modernization reviews.
``40122. Federal Aviation Administration personnel management system.''.

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

SEC. 271. <<NOTE: 49 USC 40101 note.>> FINDINGS.

    Congress finds the following:
            (1) The Administration is recognized throughout the world as 
        a leader in aviation safety.
            (2) The Administration certifies aircraft, engines, 
        propellers, and other manufactured parts.
            (3) The Administration certifies more than 650 training 
        schools for pilots and nonpilots, more than 4,858 repair 
        stations, and more than 193 maintenance schools.
            (4) The Administration certifies pilot examiners, who are 
        then qualified to determine if a person has the skills necessary 
        to become a pilot.
            (5) The Administration certifies more than 6,000 medical 
        examiners, each of whom is then qualified to medically certify 
        the qualifications of pilots and nonpilots.
            (6) The Administration certifies more than 470 airports, and 
        provides a limited certification for another 205 airports. Other 
        airports in the United States are also reviewed by the 
        Administration.
            (7) The Administration each year performs more than 355,000 
        inspections.

[[Page 110 STAT. 3239]]

            (8) The Administration issues more than 655,000 pilot's 
        licenses and more than 560,000 nonpilot's licenses (including 
        mechanics).
            (9) The Administration's certification means that the 
        product meets world-wide recognized standards of safety and 
        reliability.
            (10) The Administration's certification means aviation-
        related equipment and services meet world-wide recognized 
        standards.
            (11) The Administration's certification is recognized by 
        governments and businesses throughout the world and as such may 
        be a valuable element for any company desiring to sell aviation-
        related products throughout the world.
            (12) The Administration's certification may constitute a 
        valuable license, franchise, privilege or benefits for the 
        holders.
            (13) The Administration also is a major purchaser of 
        computers, radars, and other systems needed to run the air 
        traffic control system. The Administration's design, acceptance, 
        commissioning, or certification of such equipment enables the 
        private sector to market those products around the world, and as 
        such confers a benefit on the manufacturer.
            (14) The Administration provides extensive services to 
        public use aircraft.

SEC. 272. <<NOTE: 49 USC 40101 note.>> PURPOSES.

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

SEC. 273. USER FEES FOR VARIOUS FEDERAL AVIATION ADMINISTRATION 
            SERVICES.

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

``Sec. 45301. General provisions

    ``(a) Schedule of Fees.--The Administrator shall establish a 
schedule of new fees, and a collection process for such fees, for the 
following services provided by the Administration:

[[Page 110 STAT. 3240]]

            ``(1) Air traffic control and related services provided to 
        aircraft other than military and civilian aircraft of the United 
        States government or of a foreign government that neither take 
        off from, nor land in, the United States.
            ``(2) Services (other than air traffic control services) 
        provided to a foreign government.

    ``(b) Limitations.--
            ``(1) Authorization and impact considerations.--In 
        establishing fees under subsection (a), the Administrator--
                    ``(A) is authorized to recover in fiscal year 1997 
                $100,000,000; and
                    ``(B) shall ensure that each of the fees required by 
                subsection (a) is directly related to the 
                Administration's costs of providing the service 
                rendered. Services for which costs may be recovered 
                include the costs of air traffic control, navigation, 
                weather services, training and emergency services which 
                are available to facilitate safe transportation over the 
                United States, and other services provided by the 
                Administrator or by programs financed by the 
                Administrator to flights that neither take off nor land 
                in the United States.
            ``(2) Publication; comment.--The <<NOTE: Federal Register, 
        publication.>> Administrator shall publish in the Federal 
        Register an initial fee schedule and associated collection 
        process as an interim final rule, pursuant to which public 
        comment will be sought and a final rule issued.

    ``(c) Use of Experts and Consultants.--In developing the system, the 
Administrator may consult with such nongovernmental experts as the 
Administrator may employ and the Administrator may utilize the services 
of experts and consultants under section 3109 of title 5 without regard 
to the limitation imposed by the last sentence of section 3109(b) of 
such title, and may contract on a sole source basis, notwithstanding any 
other provision of law to the contrary. Notwithstanding any other 
provision of law to the contrary, the Administrator may retain such 
experts under a contract awarded on a basis other than a competitive 
basis and without regard to any such provisions requiring competitive 
bidding or precluding sole source contract authority.''.
    (b) Conforming Amendment.--The table of sections for chapter 453 is 
amended by striking the item relating to section 45301 and inserting the 
following:

``45301. General provisions.''.

SEC. 274. <<NOTE: 49 USC 40101 note.>> INDEPENDENT ASSESSMENT OF FAA 
            FINANCIAL REQUIREMENTS; ESTABLISHMENT OF NATIONAL CIVIL 
            AVIATION REVIEW COMMISSION.

    (a) Independent Assessment.--
            (1) Initiation.--Not later than 30 days after the date of 
        the enactment of this Act, the Administrator shall contract with 
        an entity independent of the Administration and the Department 
        of Transportation to conduct a complete independent assessment 
        of the financial requirements of the Administration through the 
        year 2002.
            (2) Assessment criteria.--The Administrator shall provide to 
        the independent entity estimates of the financial requirements 
        of the Administration for the period described in paragraph (1), 
        using as a base the fiscal year 1997 appropriation levels 
        established by Congress. The independent assess

[[Page 110 STAT. 3241]]

        ment shall be based on an objective analysis of agency funding 
        needs.
            (3) Certain factors to be taken into account.--The 
        independent assessment shall take into account all relevant 
        factors, including--
                    (A) anticipated air traffic forecasts;
                    (B) other workload measures;
                    (C) estimated productivity gains, if any, which 
                contribute to budgetary requirements;
                    (D) the need for programs; and
                    (E) the need to provide for continued improvements 
                in all facets of aviation safety, along with operational 
                improvements in air traffic control.
            (4) Cost allocation.--The independent assessment shall also 
        assess the costs to the Administration occasioned by the 
        provision of services to each segment of the aviation system.
            (5) Deadline.--The independent assessment shall be completed 
        no later than 90 days after the contract is awarded, and shall 
        be submitted to the Commission established under subsection (b), 
        the Secretary, the Secretary of the Treasury, the Committee on 
        Commerce, Science, and Transportation and the Committee on 
        Finance of the Senate, and the Committee on Transportation and 
        Infrastructure and the Committee on Ways and Means of the House 
        of Representatives.

    (b) National Civil Aviation Review Commission.--
            (1) Establishment.--There is established a commission to be 
        known as the National Civil Aviation Review Commission 
        (hereinafter in this section referred to as the ``Commission'').
            (2) Membership.--The Commission shall consist of 21 members 
        to be appointed as follows:
                    (A) 13 members to be appointed by the Secretary, in 
                consultation with the Secretary of the Treasury, from 
                among individuals who have expertise in the aviation 
                industry and who are able, collectively, to represent a 
                balanced view of the issues important to general 
                aviation, major air carriers, air cargo carriers, 
                regional air carriers, business aviation, airports, 
                aircraft manufacturers, the financial community, 
                aviation industry workers, and airline passengers. At 
                least one member appointed under this subparagraph shall 
                have detailed knowledge of the congressional budgetary 
                process.
                    (B) Two members appointed by the Speaker of the 
                House of Representatives.
                    (C) Two members appointed by the minority leader of 
                the House of Representatives.
                    (D) Two members appointed by the majority leader of 
                the Senate.
                    (E) Two members appointed by the minority leader of 
                the Senate.
            (3) Task forces.--The Commission shall establish an aviation 
        funding task force and an aviation safety task force to carry 
        out the responsibilities of the Commission under this 
        subsection.
            (4) First meeting.--The Commission may conduct its first 
        meeting as soon as a majority of the members of the Commission 
        are appointed.
            (5) Hearings and consultation.--

[[Page 110 STAT. 3242]]

                    (A) Hearings.--The Commission shall take such 
                testimony and solicit and receive such comments from the 
                public and other interested parties as it considers 
                appropriate, shall conduct 2 public hearings after 
                affording adequate notice to the public thereof, and may 
                conduct such additional hearings as may be necessary.
                    (B) Consultation.--The Commission shall consult on a 
                regular and frequent basis with the Secretary, the 
                Secretary of the Treasury, the Committee on Commerce, 
                Science, and Transportation and the Committee on Finance 
                of the Senate, and the Committee on Transportation and 
                Infrastructure and the Committee on Ways and Means of 
                the House of Representatives.
                    (C) FACA not to apply.--The Commission shall not be 
                considered an advisory committee for purposes of the 
                Federal Advisory Committee Act (5 U.S.C. App.).
            (6) Duties of aviation funding task force.--
                    (A) Report to secretary.--
                          (i) In general.--The aviation funding task 
                      force established pursuant to paragraph (3) shall 
                      submit a report setting forth a comprehensive 
                      analysis of the Administration's budgetary 
                      requirements through fiscal year 2002, based upon 
                      the independent assessment under subsection (a), 
                      that analyzes alternative financing and funding 
                      means for meeting the needs of the aviation system 
                      through the year 2002. The task force shall submit 
                      a preliminary report of that analysis to the 
                      Secretary not later than 6 months after the 
                      independent assessment is completed under 
                      subsection (a). The Secretary shall provide 
                      comments on the preliminary report to the task 
                      force within 30 days after receiving the report. 
                      The task force shall issue a final report of such 
                      comprehensive analysis within 30 days after 
                      receiving the Secretary's comments on its 
                      preliminary report.
                          (ii) Contents.--The report submitted by the 
                      aviation funding task force under clause (i)--
                                    (I) shall consider the independent 
                                assessment under subsection (a);
                                    (II) shall consider estimated cost 
                                savings, if any, resulting from the 
                                procurement and personnel reforms 
                                included in this Act or in sections 347 
                                and 348 of Public Law 104-50, and 
                                additional financial initiatives;
                                    (III) shall include specific 
                                recommendations to Congress on how the 
                                Administration can reduce costs, raise 
                                additional revenue for the support of 
                                agency operations, and accelerate 
                                modernization efforts; and
                                    (IV) shall include a draft bill 
                                containing the changes in law necessary 
                                to implement its recommendations.
                    (B) Recommendations.--The aviation funding task 
                force shall make such recommendations under subparagraph 
                (A)(ii)(III) as the task force deems appropriate. Those 
                recommendations may include--

[[Page 110 STAT. 3243]]

                          (i) proposals for off-budget treatment of the 
                      Airport and Airway Trust Fund;
                          (ii) alternative financing and funding 
                      proposals, including linked financing proposals;
                          (iii) modifications to existing levels of 
                      Airport and Airways Trust Fund receipts and taxes 
                      for each type of tax;
                          (iv) establishment of a cost-based user fee 
                      system based on, but not limited to, criteria 
                      under subparagraph (F) and methods to ensure that 
                      costs are borne by users on a fair and equitable 
                      basis;
                          (v) methods to ensure that funds collected 
                      from the aviation community are able to meet the 
                      needs of the agency;
                          (vi) methods to ensure that funds collected 
                      from the aviation community and passengers are 
                      used to support the aviation system;
                          (vii) means of meeting the airport 
                      infrastructure needs for large, medium, and small 
                      airports; and
                          (viii) any other matter the task force deems 
                      appropriate to address the funding and needs of 
                      the Administration and the aviation system.
                    (C) Additional recommendations.--The aviation 
                funding task force report may also make recommendations 
                concerning--
                          (i) means of improving productivity by 
                      expanding and accelerating the use of automation 
                      and other technology;
                          (ii) means of contracting out services 
                      consistent with this Act, other applicable law, 
                      and safety and national defense needs;
                          (iii) methods to accelerate air traffic 
                      control modernization and improvements in aviation 
                      safety and safety services;
                          (iv) the elimination of unneeded programs; and
                          (v) a limited innovative program based on 
                      funding mechanisms such as loan guarantees, 
                      financial partnerships with for-profit private 
                      sector entities, government-sponsored enterprises, 
                      and revolving loan funds, as a means of funding 
                      specific facilities and equipment projects, and to 
                      provide limited additional funding alternatives 
                      for airport capacity development.
                    (D) Impact assessment for recommendations.--For each 
                recommendation contained in the aviation funding task 
                force's report, the report shall include a full analysis 
                and assessment of the impact implementation of the 
                recommendation would have on--
                          (i) safety;
                          (ii) administrative costs;
                          (iii) the congressional budget process;
                          (iv) the economics of the industry (including 
                      the proportionate share of all users);
                          (v) the ability of the Administration to 
                      utilize the sums collected; and
                          (vi) the funding needs of the Administration.
                    (E) Trust fund tax recommendations.--If the task 
                force's report includes a recommendation that the 
                existing

[[Page 110 STAT. 3244]]

                Airport and Airways Trust Fund tax structure be 
                modified, the report shall--
                          (i) state the specific rates for each group 
                      affected by the proposed modifications;
                          (ii) consider the impact such modifications 
                      shall have on specific users and the public 
                      (including passengers); and
                          (iii) state the basis for the recommendations.
                    (F) Fee system recommendations.--If the task force's 
                report includes a recommendation that a fee system be 
                established, including an air traffic control 
                performance-based user fee system, the report shall 
                consider--
                          (i) the impact such a recommendation would 
                      have on passengers, air fares (including low-fare, 
                      high frequency service), service, and competition;
                          (ii) existing contributions provided by 
                      individual air carriers toward funding the 
                      Administration and the air traffic control system 
                      through contributions to the Airport and Airways 
                      Trust Fund;
                          (iii) continuing the promotion of fair and 
                      competitive practices;
                          (iv) the unique circumstances associated with 
                      interisland air carrier service in Hawaii and 
                      rural air service in Alaska;
                          (v) the impact such a recommendation would 
                      have on service to small communities;
                          (vi) the impact such a recommendation would 
                      have on services provided by regional air 
                      carriers;
                          (vii) alternative methodologies for 
                      calculating fees so as to achieve a fair and 
                      reasonable distribution of costs of service among 
                      users;
                          (viii) the usefulness of phased-in approaches 
                      to implementing such a financing system;
                          (ix) means of assuring the provision of 
                      general fund contributions, as appropriate, toward 
                      the support of the Administration; and
                          (x) the provision of incentives to encourage 
                      greater efficiency in the provision of air traffic 
                      services by the Administration and greater 
                      efficiency in the use of air traffic services by 
                      aircraft operators.
            (7) Duties of aviation safety task force.--
                    (A) Report to administrator.--Not later than 1 year 
                after the date of the enactment of this Act, the 
                aviation safety task force established pursuant to 
                paragraph (3) shall submit to the Administrator a report 
                setting forth a comprehensive analysis of aviation 
                safety in the United States and emerging trends in the 
                safety of particular sectors of the aviation industry.
                    (B) Contents.--The report to be submitted under 
                subparagraph (A) shall include an assessment of--
                          (i) the adequacy of staffing and training 
                      resources for safety personnel of the 
                      Administration, including safety inspectors;
                          (ii) the Administration's processes for 
                      ensuring the public safety from fraudulent parts 
                      in civil aviation and the extent to which use of 
                      suspected unapproved

[[Page 110 STAT. 3245]]

                      parts requires additional oversight or enforcement 
                      action; and
                          (iii) the ability of the Administration to 
                      anticipate changes in the aviation industry and to 
                      develop policies and actions to ensure the highest 
                      level of aviation safety in the 21st century.
            (8) Access to documents and staff.--The Administration may 
        give the Commission appropriate access to relevant documents and 
        personnel of the Administration, and the Administrator shall 
        make available, consistent with the authority to withhold 
        commercial and other proprietary information under section 552 
        of title 5, United States Code (commonly known as the ``Freedom 
        of Information Act''), cost data associated with the acquisition 
        and operation of air traffic service systems. Any member of the 
        Commission who receives commercial or other proprietary data 
        from the Administrator shall be subject to the provisions of 
        section 1905 of title 18, United States Code, pertaining to 
        unauthorized disclosure of such information.
            (9) Travel and per diem.--Each member of the Commission 
        shall be paid actual travel expenses, and per diem in lieu of 
        subsistence expenses when away from his or her usual place of 
        residence, in accordance with section 5703 of title 5, United 
        States Code.
            (10) Detail of personnel from the administration.--The 
        Administrator shall make available to the Commission such staff, 
        information, and administrative services and assistance as may 
        reasonably be required to enable the Commission to carry out its 
        responsibilities under this subsection.
            (11) Authorization of appropriations.--There is authorized 
        to be appropriated such sums as may be necessary to carry out 
        the provisions of this subsection.

    (c) Reports to Congress.--
            (1) Report by the secretary based on final report of 
        aviation funding task force.--
                    (A) Consideration of task force's preliminary 
                report.--Not later than 30 days after receiving the 
                preliminary report of the aviation funding task force, 
                the Secretary, in consultation with the Secretary of the 
                Treasury, shall furnish comments on the report to the 
                task force.
                    (B) Report to congress.--Not later than 30 days 
                after receiving the final report of the aviation funding 
                task force, and in no event more than 1 year after the 
                date of the enactment of this Act, the Secretary, after 
                consulting the Secretary of the Treasury, shall transmit 
                a report to the Committee on Commerce, Science, and 
                Transportation and the Committee on Finance of the 
                Senate, and the Committee on Transportation and 
                Infrastructure and the Committee on Ways and Means of 
                the House of Representatives. Such report shall be based 
                upon the final report of the task force and shall 
                contain the Secretary's recommendations for funding the 
                needs of the aviation system through the year 2002.
                    (C) Contents.--The Secretary shall include in the 
                report to Congress under subparagraph (B)--
                          (i) a copy of the final report of the task 
                      force; and

[[Page 110 STAT. 3246]]

                          (ii) a draft bill containing the changes in 
                      law necessary to implement the Secretary's 
                      recommendations.
                    (D) Publication.--The <<NOTE: Federal Register, 
                publication.>> Secretary shall cause a copy of the 
                report to be printed in the Federal Register upon its 
                transmittal to Congress under subparagraph (B).
            (2) Report by the administrator based on final report of 
        aviation safety task force.--Not later than 30 days after 
        receiving the report of the aviation safety task force, the 
        Administrator shall transmit the report to Congress, together 
        with the Administrator's recommendations for improving aviation 
        safety in the United States.

    (d) GAO Audit of Cost Allocation.--The Comptroller General shall 
conduct an assessment of the manner in which costs for air traffic 
control services are allocated between the Administration and the 
Department of Defense. The Comptroller General shall report the results 
of the assessment, together with any recommendations the Comptroller 
General may have for reallocation of costs and for opportunities to 
increase the efficiency of air traffic control services provided by the 
Administration and by the Department of Defense, to the Commission, the 
Administrator, the Secretary of Defense, the Committee on Transportation 
and Infrastructure of the House of Representatives, and the Committee on 
Commerce, Science, and Transportation of the Senate not later than 180 
days after the date of the enactment of this Act.
    (e) GAO Assessment.--Not later than 180 days after the date of the 
enactment of this Act, the Comptroller General shall transmit to the 
Commission and Congress an independent assessment of airport development 
needs.

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

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

``Sec. 48111. Funding proposals

    ``(a) Introduction in the Senate.--Within 15 days (not counting any 
day on which the Senate is not in session) after a funding proposal is 
submitted to the Senate by the Secretary of Transportation under section 
274(c) of the Air Traffic Management System Performance Improvement Act 
of 1996, an implementing bill with respect to such funding proposal 
shall be introduced in the Senate by the majority leader of the Senate, 
for himself and the minority leader of the Senate, or by Members of the 
Senate designated by the majority leader and minority leader of the 
Senate.
    ``(b) Consideration in the Senate.--An implementing bill introduced 
in the Senate under subsection (a) shall be referred to the Committee on 
Commerce, Science, and Transportation. The Committee on Commerce, 
Science, and Transportation shall report the bill with its 
recommendations within 60 days following the date of introduction of the 
bill. Upon the reporting of the bill by the Committee on Commerce, 
Science, and Transportation, the reported bill shall be referred 
sequentially to the Committee on Finance for a period of 60 legislative 
days.
    ``(c) Definitions.--For purposes of this section, the following 
definitions apply:
            ``(1) Implementing bill.--The term `implementing bill' means 
        only a bill of the Senate which is introduced as provided

[[Page 110 STAT. 3247]]

        in subsection (a) with respect to one or more Federal Aviation 
        Administration funding proposals which contain changes in 
        existing laws or new statutory authority required to implement 
        such funding proposal or proposals.
            ``(2) Funding proposal.--The term `funding proposal' means a 
        proposal to provide interim or permanent funding for operations 
        of the Federal Aviation Administration.

    ``(d) Rules of the Senate.--The provisions of this section are 
enacted--
            ``(1) as an exercise of the rulemaking power of the Senate 
        and as such they are deemed a part of the rules of the Senate 
        and they supersede other rules only to the extent that they are 
        inconsistent therewith; and
            ``(2) with full recognition of the constitutional right of 
        the Senate to change the rules (so far as relating to the 
        procedure of the Senate) at any time, in the same manner and to 
        the same extent as in the case of any other rule of the 
        Senate.''.

    (b) Clerical Amendment.--The table of sections for chapter 481 is 
amended by adding at the end thereof the following:

``48111. Funding proposals.''.

SEC. 276. ADMINISTRATIVE PROVISIONS.

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

``Sec. 45303. Administrative provisions

    ``(a) Fees Payable to Administrator.--All fees imposed and amounts 
collected under this chapter for services performed, or materials 
furnished, by the Federal Aviation Administration are payable to the 
Administrator of the Federal Aviation Administration.
    ``(b) Refunds.--The Administrator may refund any fee paid by mistake 
or any amount paid in excess of that required.
    ``(c) Receipts Credited to Account.--Notwithstanding section 3302 of 
title 31, all fees and amounts collected by the Administration, except 
insurance premiums and other fees charged for the provision of insurance 
and deposited in the Aviation Insurance Revolving Fund and interest 
earned on investments of such Fund, and except amounts which on 
September 30, 1996, are required to be credited to the general fund of 
the Treasury (whether imposed under this section or not)--
            ``(1) shall be credited to a separate account established in 
        the Treasury and made available for Administration activities;
            ``(2) shall be available immediately for expenditure but 
        only for congressionally authorized and intended purposes; and
            ``(3) shall remain available until expended.

    ``(d) Annual Budget Report by Administrator.--The Administrator 
shall, on the same day each year as the President submits the annual 
budget to Congress, provide to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives--
            ``(1) a list of fee collections by the Administration during 
        the preceding fiscal year;

[[Page 110 STAT. 3248]]

            ``(2) a list of activities by the Administration during the 
        preceding fiscal year that were supported by fee expenditures 
        and appropriations;
            ``(3) budget plans for significant programs, projects, and 
        activities of the Administration, including out-year funding 
        estimates;
            ``(4) any proposed disposition of surplus fees by the 
        Administration; and
            ``(5) such other information as those committees consider 
        necessary.

    ``(e) Development of Cost Accounting System.--The Administration 
shall develop a cost accounting system that adequately and accurately 
reflects the investments, operating and overhead costs, revenues, and 
other financial measurement and reporting aspects of its operations.
    ``(f) Compensation to Carriers for Acting as Collection Agents.--
The <<NOTE: Regulations.>> Administration shall prescribe regulations to 
ensure that any air carrier required, pursuant to the Air Traffic 
Management System Performance Improvement Act of 1996 or any amendments 
made by that Act, to collect a fee imposed on another party by the 
Administrator may collect from such other party an additional uniform 
amount that the Administrator determines reflects the necessary and 
reasonable expenses (net of interest accruing to the carrier after 
collection and before remittance) incurred in collecting and handling 
the fee.''.

    (b) Conforming Amendment.--The table of sections for chapter 453 is 
amended by striking the item relating to section 45303 and inserting the 
following:

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

SEC. 277. ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY TRUST FUND 
            ACTIVITIES.

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

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

``Sec.
``48201. Advance appropriations.

``Sec. 48201. Advance appropriations

    ``(a) Multiyear Authorizations.--Beginning with fiscal year 1999, 
any authorization of appropriations for an activity for which amounts 
are to be appropriated from the Airport and Airway Trust Fund 
established under section 9502 of the Internal Revenue Code of 1986 
shall provide funds for a period of not less than 3 fiscal years unless 
the activity for which appropriations are authorized is to be concluded 
before the end of that period.
    ``(b) Multiyear Appropriations.--Beginning with fiscal year 1999, 
amounts appropriated from the Airport and Airway Trust Fund shall be 
appropriated for periods of 3 fiscal years rather than annually.''.
    (b) Conforming Amendment.--The analysis for subtitle VII is amended 
by inserting after the item relating to chapter 481 the following:


[[Page 110 STAT. 3249]]


``482. ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY TRUST 
FACILITIES.....................................................48201.''.

SEC. 278. RURAL AIR SERVICE SURVIVAL ACT.

    (a) Short Title.--This <<NOTE: 49 USC 40101 note.>> section may be 
cited as the ``Rural Air Service Survival Act''.

    (b) Findings.--Congress <<NOTE: 49 USC 41742 note.>> finds that--
            (1) air service in rural areas is essential to a national 
        and international transportation network;
            (2) the rural air service infrastructure supports the safe 
        operation of all air travel;
            (3) rural air service creates economic benefits for all air 
        carriers by making the national aviation system available to 
        passengers from rural areas;
            (4) rural air service has suffered since deregulation;
            (5) the essential air service program under the Department 
        of Transportation--
                    (A) provides essential airline access to rural and 
                isolated rural communities throughout the Nation;
                    (B) is necessary for the economic growth and 
                development of rural communities;
                    (C) is a critical component of the national and 
                international transportation system of the United 
                States; and
                    (D) has endured serious funding cuts in recent 
                years; and
            (6) a reliable source of funding must be established to 
        maintain air service in rural areas and the essential air 
        service program.

    (c) Essential Air Service Authorization.--Section 41742 is amended 
to read as follows:

``Sec. 41742. Essential air service authorization

    ``(a) In General.--Out of the amounts received by the Federal 
Aviation Administration credited to the account established under 
section 45303 of this title or otherwise provided to the Administration, 
the sum of $50,000,000 is authorized and shall be made available 
immediately for obligation and expenditure to carry out the essential 
air service program under this subchapter for each fiscal year.
    ``(b) Funding for Small Community Air Service.--Notwithstanding any 
other provision of law, moneys credited to the account established under 
section 45303(a) of this title, including the funds derived from fees 
imposed under the authority contained in section 45301(a) of this title, 
shall be used to carry out the essential air service program under this 
subchapter. Notwithstanding section 47114(g) of this title, any amounts 
from those fees that are not obligated or expended at the end of the 
fiscal year for the purpose of funding the essential air service program 
under this subchapter shall be made available to the Administration for 
use in improving rural air safety under subchapter I of chapter 471 of 
this title and shall be used exclusively for projects at rural airports 
under this subchapter.
    ``(c) Special Rule for Fiscal Year 1997.--Notwithstanding 
subsections (a) and (b), in fiscal year 1997, amounts in excess of 
$75,000,000 that are collected in fees pursuant to section 45301(a)(1) 
of this title shall be available for the essential air service program 
under this subchapter, in addition to amounts specifically provided for 
in appropriations Acts.''.

[[Page 110 STAT. 3250]]

    (d) Conforming Amendment.--The table of sections for chapter 417 is 
amended by striking the item relating to section 41742 and inserting the 
following:

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

                      TITLE III--AVIATION SECURITY

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

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, the Administrator of the Federal Aviation 
Administration, in cooperation with other appropriate persons, shall 
conduct a study and submit to Congress a report on whether, and if so 
how, to transfer certain responsibilities of air carriers under Federal 
law for security activities conducted onsite at commercial service 
airports to airport operators or to the Federal Government or to provide 
for shared responsibilities between air carriers and airport operators 
or the Federal Government.
    (b) Contents of Report.--The report submitted under this section 
shall--
            (1) examine potential sources of Federal and non-Federal 
        revenue that may be used to fund security activities, including 
        providing grants from funds received as fees collected under a 
        fee system established under subtitle C of title II of this Act 
        and the amendments made by that subtitle; and
            (2) provide legislative proposals, if necessary, for 
        accomplishing the transfer of responsibilities referred to in 
        subsection (a).

SEC. 302. <<NOTE: 49 USC 44935 note.>> CERTIFICATION OF SCREENING 
            COMPANIES.

    The Administrator of the Federal Aviation Administration is directed 
to certify companies providing security screening and to improve the 
training and testing of security screeners through development of 
uniform performance standards for providing security screening services.

SEC. 303. <<NOTE: 49 USC 44913 note.>> WEAPONS AND EXPLOSIVE DETECTION 
            STUDY.

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

    (c) Study.--The panel, in consultation with the National Science and 
Technology Council, representatives of appropriate 

[[Page 110 STAT. 3251]]

Federal agencies, and appropriate members of the private sector, shall--
            (1) assess the weapons and explosive detection technologies 
        that are available at the time of the study that are capable of 
        being effectively deployed in commercial aviation;
            (2) determine how the technologies referred to in paragraph 
        (1) may more effectively be used for promotion and improvement 
        of security at airport and aviation facilities and other secured 
        areas;
            (3) assess the cost and advisability of requiring hardened 
        cargo containers as a way to enhance aviation security and 
        reduce the required sensitivity of bomb detection equipment; and
            (4) on the basis of the assessments and determinations made 
        under paragraphs (1), (2), and (3), identify the most promising 
        technologies for the improvement of the efficiency and cost-
        effectiveness of weapons and explosive detection.

    (d) Cooperation.--The National Science and Technology Council shall 
take such actions as may be necessary to facilitate, to the maximum 
extent practicable and upon request of the Director of the National 
Academy of Sciences (or the head of another equivalent entity), the 
cooperation of representatives of appropriate Federal agencies, as 
provided for in subsection (c), in providing the panel, for the study 
under this section--
            (1) expertise; and
            (2) to the extent allowable by law, resources and 
        facilities.

    (e) Reports.--The Director of the National Academy of Sciences (or 
the head of another equivalent entity) shall, pursuant to an arrangement 
entered into under subsection (a), submit to the Administrator such 
reports as the Administrator considers to be appropriate. Upon receipt 
of a report under this subsection, the Administrator shall submit a copy 
of the report to the appropriate committees of Congress.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated for each of fiscal years 1997 through 2001 such sums as may 
be necessary to carry out this section.

SEC. 304. REQUIREMENT FOR CRIMINAL HISTORY RECORDS CHECKS.

    (a) In General.--Section 44936(a)(1) is amended--
            (1) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively;
            (2) by striking ``(1)'' and inserting ``(1)(A)''; and
            (3) by adding at the end the following:

    ``(B) The Administrator shall require by regulation that an 
employment investigation (including a criminal history record check in 
any case described in subparagraph (C)) be conducted for--
            ``(i) individuals who will be responsible for screening 
        passengers or property under section 44901 of this title;
            ``(ii) supervisors of the individuals described in clause 
        (i); and
            ``(iii) such other individuals who exercise security 
        functions associated with baggage or cargo, as the Administrator 
        determines is necessary to ensure air transportation security.

    ``(C) Under the regulations issued under subparagraph (B), a 
criminal history record check shall be conducted in any case in which--

[[Page 110 STAT. 3252]]

            ``(i) an employment investigation reveals a gap in 
        employment of 12 months or more that the individual who is the 
        subject of the investigation does not satisfactorily account 
        for;
            ``(ii) such individual is unable to support statements made 
        on the application of such individual;
            ``(iii) there are significant inconsistencies in the 
        information provided on the application of such individual; or
            ``(iv) information becomes available during the employment 
        investigation indicating a possible conviction for one of the 
        crimes listed in subsection (b)(1)(B).

    ``(D) If an individual requires a criminal history record check 
under subparagraph (C), the individual may be employed as a screener 
until the check is completed if the individual is subject to 
supervision.''.
    (b) Applicability.--The <<NOTE: 49 USC 44936 note.>> amendment made 
by subsection (a)(3) shall apply to individuals hired to perform 
functions described in section 44936(a)(1)(B) of title 49, United States 
Code, after the date of the enactment of this Act; except that the 
Administrator of the Federal Aviation Administration may, as the 
Administrator determines to be appropriate, require such employment 
investigations or criminal history records checks for individuals 
performing those functions on the date of the enactment of this Act.

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

    (a) In General.--Section 44913(a) is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following:

    ``(3) Until such time as the Administrator determines that equipment 
certified under paragraph (1) is commercially available and has 
successfully completed operational testing as provided in paragraph (1), 
the Administrator shall facilitate the deployment of such approved 
commercially available explosive detection devices as the Administrator 
determines will enhance aviation security significantly. The 
Administrator shall require that equipment deployed under this paragraph 
be replaced by equipment certified under paragraph (1) when equipment 
certified under paragraph (1) becomes commercially available. The 
Administrator is authorized, based on operational considerations at 
individual airports, to waive the required installation of commercially 
available equipment under paragraph (1) in the interests of aviation 
security. The Administrator may permit the requirements of this 
paragraph to be met at airports by the deployment of dogs or other 
appropriate animals to supplement equipment for screening passengers, 
baggage, mail, or cargo for explosives or weapons.''.
    (b) Agreements.--The <<NOTE: 49 USC 44901 note.>> Administrator is 
authorized to use noncompetitive or cooperative agreements with air 
carriers and airport authorities that provide for the Administrator to 
purchase and assist in installing advanced security equipment for the 
use of such entities.

SEC. 306. AUDIT OF PERFORMANCE OF BACKGROUND CHECKS FOR CERTAIN 
            PERSONNEL.

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

[[Page 110 STAT. 3253]]

SEC. 307. <<NOTE: 49 USC 44901 note.>> PASSENGER PROFILING.

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

SEC. 308. <<NOTE: 49 USC 44901 note.>> AUTHORITY TO USE CERTAIN FUNDS 
            FOR AIRPORT SECURITY PROGRAMS AND ACTIVITIES.

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

SEC. 309. <<NOTE: 49 USC 44931 note.>> DEVELOPMENT OF AVIATION SECURITY 
            LIAISON AGREEMENT.

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

SEC. 310. <<NOTE: 49 USC 44904 note.>> REGULAR JOINT THREAT ASSESSMENTS.

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

SEC. 311. BAGGAGE MATCH REPORT.

    (a) Report.--If a bag match pilot program is carried out as 
recommended by the White House Conference on Aviation Safety and 
Security, not later than the 30th day following the date of completion 
of the pilot program, the Administrator of the Federal Aviation 
Administration shall submit to Congress a report on the safety, 
effectiveness, and operational effectiveness of the pilot program. The 
report shall also assess the extent to which implementation of baggage 
match requirements (coupled with the best available technologies and 
methodologies, such as passenger profiling) enhance domestic aviation 
security.
    (b) Sense of the Senate.--It is the sense of the Senate that the 
Administrator should work with airports and air carriers to develop, to 
the extent feasible, effective domestic bag matching proposals.

SEC. 312. ENHANCED SECURITY PROGRAMS.

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

[[Page 110 STAT. 3254]]

``Sec. 44916. Assessments and evaluations

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

``44916. Assessments and evaluations.''.

SEC. 313. REPORT ON AIR CARGO.

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

    (c) Sense of the Senate.--It is the sense of the Senate that the 
inspection of cargo, mail, and company-shipped materials can be 
enhanced.

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

    (a) Findings.--The Senate finds that--
            (1) there has been an intensification in the oppression and 
        disregard for human life among nations that are willing to 
        export terrorism;
            (2) there has been an increase in attempts by criminal 
        terrorists to murder airline passengers through the destruction 
        of civilian airliners and the deliberate fear and death 
        inflicted through bombings of buildings and the kidnapping of 
        tourists and Americans residing abroad; and
            (3) information widely available demonstrates that a 
        significant portion of international terrorist activity is 
        state-sponsored, -organized, -condoned, or -directed.

[[Page 110 STAT. 3255]]

    (b) Sense of the Senate.--It is the sense of the Senate that if 
evidence establishes beyond a clear and reasonable doubt that any act of 
hostility towards any United States citizen was an act of international 
terrorism sponsored, organized, condoned, or directed by any nation, a 
state of war should be considered to exist or to have existed between 
the United States and that nation, beginning as of the moment that the 
act of aggression occurs.

                        TITLE IV--AVIATION SAFETY

SEC. 401. ELIMINATION OF DUAL MANDATE.

    (a) Safety Considerations in Public Interest.--
            (1) Safety as highest priority.--Section 40101(d) is 
        amended--
                    (A) by redesignating paragraphs (1) through (6) as 
                paragraphs (2) through (7), respectively; and
                    (B) by inserting before paragraph (2), as so 
                redesignated, the following:
            ``(1) assigning, maintaining, and enhancing safety and 
        security as the highest priorities in air commerce.''.
            (2) Elimination of promotion.--Section 40101(d) is further 
        amended--
                    (A) in paragraph (2), as redesignated by paragraph 
                (1)(A) of this subsection, by striking ``its development 
                and''; and
                    (B) in paragraph (3), as so redesignated--
                          (i) by striking ``promoting, encouraging,'' 
                      and inserting ``encouraging''; and
                          (ii) by inserting before the period at the end 
                      ``, including new aviation technology''.

    (b) FAA Safety Mission.--
            (1) In general.--Section 40104 is amended--
                    (A) by inserting ``safety of'' before ``air 
                commerce'' in the section heading;
                    (B) by inserting ``Safety of'' before ``Air 
                Commerce'' in the heading of subsection (a); and
                    (C) by inserting ``safety of'' before ``air 
                commerce'' in subsection (a).
            (2) Clerical amendment.--The table of sections for chapter 
        401 is amended by striking the item relating to section 40104 
        and inserting the following:

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

SEC. 402. PROTECTION OF VOLUNTARILY SUBMITTED INFORMATION.

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

``Sec. 40123. Protection of voluntarily submitted information

    ``(a) In General.--Notwithstanding any other provision of law, 
neither the Administrator of the Federal Aviation Administration, nor 
any agency receiving information from the Administrator, shall disclose 
voluntarily-provided safety or security related information if the 
Administrator finds that--
            ``(1) the disclosure of the information would inhibit the 
        voluntary provision of that type of information and that the

[[Page 110 STAT. 3256]]

        receipt of that type of information aids in fulfilling the 
        Administrator's safety and security responsibilities; and
            ``(2) withholding such information from disclosure would be 
        consistent with the Administrator's safety and security 
        responsibilities.

    ``(b) Regulations.--The Administrator shall issue regulations to 
carry out this section.''.
    (b) Conforming Amendment.--The table of sections for such chapter is 
amended by adding at the end the following:

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

SEC. 403. SUPPLEMENTAL TYPE CERTIFICATES.

    Section 44704 is amended--
            (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (2) by inserting after subsection (a) the following:

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

SEC. 404. CERTIFICATION OF SMALL AIRPORTS.

    (a) In General.--Section 44706(a) is amended--
            (1) by redesignating paragraph (2) as paragraph (3);
            (2) by inserting after paragraph (1) the following:
            ``(2) that is not located in the State of Alaska and serves 
        any scheduled passenger operation of an air carrier operating 
        aircraft designed for more than 9 passenger seats but less than 
        31 passenger seats; and'';
            (3) by striking ``and'' at the end of paragraph (3), as 
        redesignated by paragraph (1) of this subsection;
            (4) by striking ``(3) when'' and inserting ``if''; and
            (5) by moving the matter following paragraph (3), as 
        redesignated by paragraph (1) of this subsection, to the left 
        flush full measure.

    (b) Commuter Airports.--Section 44706 is amended by adding at the 
end the following:
    ``(d) Commuter Airports.--In developing the terms required by 
subsection (b) for airports covered by subsection (a)(2), the 
Administrator shall identify and consider a reasonable number of 
regulatory alternatives and select from such alternatives the least 
costly, most cost-effective or the least burdensome alternative

[[Page 110 STAT. 3257]]

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

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

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

SEC. 406. AIRCRAFT ENGINE STANDARDS.

    (a) Standards and Regulations.--Subsection (a)(1) of section 44715 
is amended to read as follows:
    ``(a) Standards and Regulations.--(1)(A) To relieve and protect the 
public health and welfare from aircraft noise and sonic boom, the 
Administrator of the Federal Aviation Administration, as he deems 
necessary, shall prescribe--
            ``(i) standards to measure aircraft noise and sonic boom; 
        and
            ``(ii) regulations to control and abate aircraft noise and 
        sonic boom.

    ``(B) The Administrator, as the Administrator deems appropriate, 
shall provide for the participation of a representative of the 
Environmental Protection Agency on such advisory committees or 
associated working groups that advise the Administrator on matters 
related to the environmental effects of aircraft and aircraft 
engines.''.
    (b) Interagency Cooperation.--Section 231(a)(2) of the Clean Air Act 
(42 U.S.C. 7571(a)(2)) is amended--
            (1) by inserting ``(A)'' before ``The Administrator''; and
            (2) by adding at the end the following:

    ``(B)(i) The Administrator shall consult with the Administrator of 
the Federal Aviation Administration on aircraft engine emission 
standards.
    ``(ii) The Administrator shall not change the aircraft engine 
emission standards if such change would significantly increase noise and 
adversely affect safety.''.

SEC. 407. ACCIDENT AND SAFETY DATA CLASSIFICATION; REPORT ON EFFECTS OF 
            PUBLICATION AND AUTOMATED SURVEILLANCE TARGETING SYSTEMS.

    (a) Accident and Safety Data Classification.--

[[Page 110 STAT. 3258]]

            (1) In general.--Subchapter II of chapter 11 of title 49, 
        United States Code, is amended by adding at the end the 
        following:

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

    ``(a) In General.--Not later than 90 days after the date of the 
enactment of this section, the National Transportation Safety Board 
shall, in consultation and coordination with the Administrator of the 
Federal Aviation Administration, develop a system for classifying air 
carrier accident data maintained by the Board.
    ``(b) Requirements for Classification System.--
            ``(1) In general.--The system developed under this section 
        shall provide for the classification of accident and safety data 
        in a manner that, in comparison to the system in effect on the 
        date of the enactment of this section, provides for safety-
        related categories that provide clearer descriptions of 
        accidents associated with air transportation, including a more 
        refined classification of accidents which involve fatalities, 
        injuries, or substantial damage and which are only related to 
        the operation of an aircraft.
            ``(2) Public comment.--In developing a system of 
        classification under paragraph (1), the Board shall provide 
        adequate opportunity for public review and comment.
            ``(3) Final classification.--After providing for public 
        review and comment, and after consulting with the Administrator, 
        the Board shall issue final classifications. The Board shall 
        ensure that air travel accident covered under this section is 
        classified in accordance with the final classifications issued 
        under this section for data for calendar year 1997, and for each 
        subsequent calendar year.
            ``(4) Publication.--The Board shall publish on a periodic 
        basis accident and safety data in accordance with the final 
        classifications issued under paragraph (3).
            ``(5) Recommendations of the administrator.--The 
        Administrator may, from time to time, request the Board to 
        consider revisions (including additions to the classification 
        system developed under this section). The Board shall respond to 
        any request made by the Administrator under this section not 
        later than 90 days after receiving that request.''.
            (2) Conforming amendment.--The table of sections for 
        subchapter II of chapter 11 of title 49, United States Code, is 
        amended by adding at the end the following:

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

    (b) Automated Surveillance Targeting Systems.--Section 44713 is 
amended by adding at the end the following:
    ``(e) Automated Surveillance Targeting Systems.--
            ``(1) In general.--The Administrator shall give high 
        priority to developing and deploying a fully enhanced safety 
        performance analysis system that includes automated surveillance 
        to assist the Administrator in prioritizing and targeting 
        surveillance and inspection activities of the Federal Aviation 
        Administration.
            ``(2) Deadlines for deployment.--
                    ``(A) Initial phase.--The initial phase of the 
                operational deployment of the system developed under 
                this subsection shall begin not later than December 31, 
                1997.

[[Page 110 STAT. 3259]]

                    ``(B) Final phase.--The final phase of field 
                deployment of the system developed under this subsection 
                shall begin not later than December 31, 1999. By that 
                date, all principal operations and maintenance 
                inspectors of the Administration, and appropriate 
                supervisors and analysts of the Administration shall 
                have been provided access to the necessary information 
                and resources to carry out the system.
            ``(3) Integration of information.--In developing the system 
        under this section, the Administration shall consider the near-
        term integration of accident and incident data into the safety 
        performance analysis system under this subsection.''.

TITLE V--PILOT <<NOTE: Pilot Records Improvement Act of 1996.>>  RECORD 
SHARING

SEC. 501. <<NOTE: 49 USC 40101 note.>>  SHORT TITLE.

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

SEC. 502. EMPLOYMENT INVESTIGATIONS OF PILOT APPLICANTS.

    (a) In General.--Section 44936 is amended by adding at the end the 
following:
    ``(f) Records of Employment of Pilot Applicants.--
            ``(1) In general.--Before hiring an individual as a pilot, 
        an air carrier shall request and receive the following 
        information:
                    ``(A) FAA records.--From the Administrator of the 
                Federal Aviation Administration, records pertaining to 
                the individual that are maintained by the Administrator 
                concerning--
                          ``(i) current airman certificates (including 
                      airman medical certificates) and associated type 
                      ratings, including any limitations to those 
                      certificates and ratings; and
                          ``(ii) summaries of legal enforcement actions 
                      resulting in a finding by the Administrator of a 
                      violation of this title or a regulation prescribed 
                      or order issued under this title that was not 
                      subsequently overturned.
                    ``(B) Air carrier and other records.--From any air 
                carrier or other person that has employed the individual 
                at any time during the 5-year period preceding the date 
                of the employment application of the individual, or from 
                the trustee in bankruptcy for such air carrier or 
                person--
                          ``(i) records pertaining to the individual 
                      that are maintained by an air carrier (other than 
                      records relating to flight time, duty time, or 
                      rest time) under regulations set forth in--
                                    ``(I) section 121.683 of title 14, 
                                Code of Federal Regulations;
                                    ``(II) paragraph (A) of section VI, 
                                appendix I, part 121 of such title;
                                    ``(III) paragraph (A) of section IV, 
                                appendix J, part 121 of such title;
                                    ``(IV) section 125.401 of such 
                                title; and
                                    ``(V) section 135.63(a)(4) of such 
                                title; and

[[Page 110 STAT. 3260]]

                          ``(ii) other records pertaining to the 
                      individual that are maintained by the air carrier 
                      or person concerning--
                                    ``(I) the training, qualifications, 
                                proficiency, or professional competence 
                                of the individual, including comments 
                                and evaluations made by a check airman 
                                designated in accordance with section 
                                121.411, 125.295, or 135.337 of such 
                                title;
                                    ``(II) any disciplinary action taken 
                                with respect to the individual that was 
                                not subsequently overturned; and
                                    ``(III) any release from employment 
                                or resignation, termination, or 
                                disqualification with respect to 
                                employment.
                    ``(C) National driver register records.--In 
                accordance with section 30305(b)(7), from the chief 
                driver licensing official of a State, information 
                concerning the motor vehicle driving record of the 
                individual.
            ``(2) Written consent; release from liability.--An air 
        carrier making a request for records under paragraph (1)--
                    ``(A) shall be required to obtain written consent to 
                the release of those records from the individual that is 
                the subject of the records requested; and
                    ``(B) may, notwithstanding any other provision of 
                law or agreement to the contrary, require the individual 
                who is the subject of the records to request to execute 
                a release from liability for any claim arising from the 
                furnishing of such records to or the use of such records 
                by such air carrier (other than a claim arising from 
                furnishing information known to be false and maintained 
                in violation of a criminal statute).
            ``(3) 5-year reporting period.--A person shall not furnish a 
        record in response to a request made under paragraph (1) if the 
        record was entered more than 5 years before the date of the 
        request, unless the information concerns a revocation or 
        suspension of an airman certificate or motor vehicle license 
        that is in effect on the date of the request.
            ``(4) Requirement to maintain records.--The Administrator 
        shall maintain pilot records described in paragraph (1)(A) for a 
        period of at least 5 years.
            ``(5) Receipt of consent; provision of information.--A 
        person shall not furnish a record in response to a request made 
        under paragraph (1) without first obtaining a copy of the 
        written consent of the individual who is the subject of the 
        records requested. A person who receives a request for records 
        under this paragraph shall furnish a copy of all of such 
        requested records maintained by the person not later than 30 
        days after receiving the request.
            ``(6) Right to receive notice and copy of any record 
        furnished.--A person who receives 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

[[Page 110 STAT. 3261]]

                    ``(B) in accordance with paragraph (10), a copy of 
                such records, if requested by the individual.
            ``(7) Reasonable charges for processing requests and 
        furnishing copies.--A person who receives a request under 
        paragraph (1) or (6) may establish a reasonable charge for the 
        cost of processing the request and furnishing copies of the 
        requested records.
            ``(8) Standard forms.--The Administrator shall promulgate--
                    ``(A) standard forms that may be used by an air 
                carrier to request records under paragraph (1); and
                    ``(B) standard forms that may be used by an air 
                carrier to--
                          ``(i) obtain the written consent of the 
                      individual who is the subject of a request under 
                      paragraph (1); and
                          ``(ii) inform the individual of--
                                    ``(I) the request; and
                                    ``(II) the individual right of that 
                                individual to receive a copy of any 
                                records furnished in response to the 
                                request.
            ``(9) Right to correct inaccuracies.--An air carrier that 
        maintains or requests and receives the records of an individual 
        under paragraph (1) shall provide the individual with a 
        reasonable opportunity to submit written comments to correct any 
        inaccuracies contained in the records before making a final 
        hiring decision with respect to the individual.
            ``(10) Right of pilot to review certain records.--
        Notwithstanding any other provision of law or agreement, an air 
        carrier shall, upon written request from a pilot employed by 
        such carrier, make available, within a reasonable time of the 
        request, to the pilot for review, any and all employment records 
        referred to in paragraph (1)(B) (i) or (ii) pertaining to the 
        employment of the pilot.
            ``(11) Privacy protections.--An air carrier that receives 
        the records of an individual under paragraph (1) may use such 
        records only to assess the qualifications of the individual in 
        deciding whether or not to hire the individual as a pilot. The 
        air carrier shall take such actions as may be necessary to 
        protect the privacy of the pilot and the confidentiality of the 
        records, including ensuring that information contained in the 
        records is not divulged to any individual that is not directly 
        involved in the hiring decision.
            ``(12) Periodic review.--Not later than 18 months after the 
        date of the enactment of the Pilot Records Improvement Act of 
        1996, and at least once every 3 years thereafter, the 
        Administrator shall transmit to Congress a statement that 
        contains, taking into account recent developments in the 
        aviation industry--
                    ``(A) recommendations by the Administrator 
                concerning proposed changes to Federal Aviation 
                Administration records, air carrier records, and other 
                records required to be furnished under subparagraphs (A) 
                and (B) of paragraph (1); or
                    ``(B) reasons why the Administrator does not 
                recommend any proposed changes to the records referred 
                to in subparagraph (A).

[[Page 110 STAT. 3262]]

            ``(13) Regulations.--The Administrator may prescribe such 
        regulations as may be necessary--
                    ``(A) to protect--
                          ``(i) the personal privacy of any individual 
                      whose records are requested under paragraph (1); 
                      and
                          ``(ii) the confidentiality of those records;
                    ``(B) to preclude the further dissemination of 
                records received under paragraph (1) by the person who 
                requested those records; and
                    ``(C) to ensure prompt compliance with any request 
                made under paragraph (1).

    ``(g) Limitation on Liability; Preemption of State Law.--
            ``(1) Limitation on liability.--No action or proceeding may 
        be brought by or on behalf of an individual who has applied for 
        or is seeking a position with an air carrier as a pilot and who 
        has signed a release from liability, as provided for under 
        paragraph (2), against--
                    ``(A) the air carrier requesting the records of that 
                individual under subsection (f)(1);
                    ``(B) a person who has complied with such request;
                    ``(C) a person who has entered information contained 
                in the individual's records; or
                    ``(D) an agent or employee of a person described in 
                subparagraph (A) or (B);
        in the nature of an action for defamation, invasion of privacy, 
        negligence, interference with contract, or otherwise, or under 
        any Federal or State law with respect to the furnishing or use 
        of such records in accordance with subsection (f).
            ``(2) Preemption.--No State or political subdivision thereof 
        may enact, prescribe, issue, continue in effect, or enforce any 
        law (including any regulation, standard, or other provision 
        having the force and effect of law) that prohibits, penalizes, 
        or imposes liability for furnishing or using records in 
        accordance with subsection (f).
            ``(3) Provision of knowingly false information.--Paragraphs 
        (1) and (2) shall not apply with respect to a person who 
        furnishes information in response to a request made under 
        subsection (f)(1), that--
                    ``(A) the person knows is false; and
                    ``(B) was maintained in violation of a criminal 
                statute of the United States.

    ``(h) Limitation on Statutory Construction.--Nothing in subsection 
(f) shall be construed as precluding the availability of the records of 
a pilot in an investigation or other proceeding concerning an accident 
or incident conducted by the Administrator, the National Transportation 
Safety Board, or a court.''.
    (b) Conforming Amendments.--Section 30305(b) is amended--
            (1) by redesignating paragraph (7) as paragraph (8); and
            (2) by inserting after paragraph (6) the following:
            ``(7) An individual who is seeking employment by an air 
        carrier as a pilot may request the chief driver licensing 
        official of a State to provide information about the individual 
        under paragraph (2) to the prospective employer of the 
        individual or to the Secretary of Transportation. Information 
        may not be obtained from the National Driver Register under this 
        subsection if the information was entered in the Register more 
        than 5 years before the request unless the information is about

[[Page 110 STAT. 3263]]

        a revocation or suspension still in effect on the date of the 
        request.''.

    (c) Civil Penalties.--Section 46301, as amended by section 1220(b) 
of this Act, is further amended--
            (1) in each of subsections (a)(1)(A), (d)(2), and 
        (f)(1)(A)(i) by inserting ``44724,'' after ``44718(d),''; and
            (2) in subsection (a)(2)(A) by inserting ``44724,'' after 
        ``44716,''.

    (d) Applicability.--The <<NOTE: Effective date.>> amendments made by 
this section shall apply <<NOTE: 49 USC 30305 note.>> to any air carrier 
hiring an individual as a pilot whose application was first received by 
the carrier on or after the 120th day following the date of the 
enactment of this Act.

SEC. 503. <<NOTE: 49 USC 44935 note.>>  STUDIES OF MINIMUM STANDARDS FOR 
            PILOT QUALIFICATIONS AND OF PAY FOR TRAINING.

    (a) Study.--The Administrator of the Federal Aviation Administration 
shall appoint a task force consisting of appropriate representatives of 
the aviation industry to conduct--
            (1) a study directed toward the development of--
                    (A) standards and criteria for preemployment 
                screening tests measuring the psychomotor coordination, 
                general intellectual capacity, instrument and mechanical 
                comprehension, and physical and mental fitness of an 
                applicant for employment as a pilot by an air carrier; 
                and
                    (B) standards and criteria for pilot training 
                facilities to be licensed by the Administrator and which 
                will assure that pilots trained at such facilities meet 
                the preemployment screening standards and criteria 
                described in subparagraph (A); and
            (2) a study to determine if the practice of some air 
        carriers to require employees or prospective employees to pay 
        for the training or experience that is needed to perform flight 
        check duties for an air carrier is in the public interest.

    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Administrator shall transmit to Congress a report on 
the results of the study conducted under subsection (a)(2).

SEC. 504. <<NOTE: 49 USC 44935 note.>> STUDY OF MINIMUM FLIGHT TIME.

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

TITLE <<NOTE: Child Pilot Safety Act.>> VI--CHILD PILOT SAFETY

SEC. 601. <<NOTE: 49 USC 40101 note.>> SHORT TITLE.

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

SEC. 602. CHILD PILOT SAFETY.

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

[[Page 110 STAT. 3264]]

``Sec. 44724. Manipulation of flight controls

    ``(a) Prohibition.--No pilot in command of an aircraft may allow an 
individual who does not hold--
            ``(1) a valid private pilots certificate issued by the 
        Administrator of the Federal Aviation Administration under part 
        61 of title 14, Code of Federal Regulations; and
            ``(2) the appropriate medical certificate issued by the 
        Administrator under part 67 of such title,

to manipulate the controls of an aircraft if the pilot knows or should 
have known that the individual is attempting to set a record or engage 
in an aeronautical competition or aeronautical feat, as defined by the 
Administrator.
    ``(b) Revocation of Airmen Certificates.--The Administrator shall 
issue an order revoking a certificate issued to an airman under section 
44703 of this title if the Administrator finds that while acting as a 
pilot in command of an aircraft, the airman has permitted another 
individual to manipulate the controls of the aircraft in violation of 
subsection (a).
    ``(c) Pilot in Command Defined.--In this section, the term `pilot in 
command' has the meaning given such term by section 1.1 of title 14, 
Code of Federal Regulations.''.
            (2) Conforming amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following:

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

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

 TITLE <<NOTE: Aviation Disaster Family Assistance Act of 1996. 49 USC 
40101 note.>> VII--FAMILY ASSISTANCE

SEC. 701. SHORT TITLE.

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

[[Page 110 STAT. 3265]]

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

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

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

    ``(a) In General.--As soon as practicable after being notified of an 
aircraft accident within the United States involving an air carrier or 
foreign air carrier and resulting in a major loss of life, the Chairman 
of the National Transportation Safety Board shall--
            ``(1) designate and publicize the name and phone number of a 
        director of family support services who shall be an employee of 
        the Board and shall be responsible for acting as a point of 
        contact within the Federal Government for the families of 
        passengers involved in the accident and a liaison between the 
        air carrier or foreign air carrier and the families; and
            ``(2) designate an independent nonprofit organization, with 
        experience in disasters and posttrauma communication with 
        families, which shall have primary responsibility for 
        coordinating the emotional care and support of the families of 
        passengers involved in the accident.

    ``(b) Responsibilities of the Board.--The Board shall have primary 
Federal responsibility for facilitating the recovery and identification 
of fatally-injured passengers involved in an accident described in 
subsection (a).
    ``(c) Responsibilities of Designated Organization.--The organization 
designated for an accident under subsection (a)(2) shall have the 
following responsibilities with respect to the families of passengers 
involved in the accident:
            ``(1) To provide mental health and counseling services, in 
        coordination with the disaster response team of the air carrier 
        or foreign air carrier involved.
            ``(2) To take such actions as may be necessary to provide an 
        environment in which the families may grieve in private.
            ``(3) To meet with the families who have traveled to the 
        location of the accident, to contact the families unable to 
        travel to such location, and to contact all affected families 
        periodically thereafter until such time as the organization, in 
        consultation with the director of family support services 
        designated for the accident under subsection (a)(1), determines 
        that further assistance is no longer needed.
            ``(4) To communicate with the families as to the roles of 
        the organization, government agencies, and the air carrier or 
        foreign air carrier involved with respect to the accident and 
        the post-accident activities.
            ``(5) To arrange a suitable memorial service, in 
        consultation with the families.

    ``(d) Passenger Lists.--
            ``(1) Requests for passenger lists.--
                    ``(A) Requests by director of family support 
                services.--It shall be the responsibility of the 
                director of family support services designated for an 
                accident under subsection (a)(1) to request, as soon as 
                practicable, from the air carrier or foreign air carrier 
                involved in the accident

[[Page 110 STAT. 3266]]

                a list, which is based on the best available information 
                at the time of the request, of the names of the 
                passengers that were aboard the aircraft involved in the 
                accident.
                    ``(B) Requests by designated organization.--The 
                organization designated for an accident under subsection 
                (a)(2) may request from the air carrier or foreign air 
                carrier involved in the accident a list described in 
                subparagraph (A).
            ``(2) Use of information.--The director of family support 
        services and the organization may not release to any person 
        information on a list obtained under paragraph (1) but may 
        provide information on the list about a passenger to the family 
        of the passenger to the extent that the director of family 
        support services or the organization considers appropriate.

    ``(e) Continuing Responsibilities of the Board.--In the course of 
its investigation of an accident described in subsection (a), the Board 
shall, to the maximum extent practicable, ensure that the families of 
passengers involved in the accident--
            ``(1) are briefed, prior to any public briefing, about the 
        accident, its causes, and any other findings from the 
        investigation; and
            ``(2) are individually informed of and allowed to attend any 
        public hearings and meetings of the Board about the accident.

    ``(f) Use of Air Carrier Resources.--To the extent practicable, the 
organization designated for an accident under subsection (a)(2) shall 
coordinate its activities with the air carrier or foreign air carrier 
involved in the accident so that the resources of the carrier can be 
used to the greatest extent possible to carry out the organization's 
responsibilities under this section.
    ``(g) Prohibited Actions.--
            ``(1) Actions to impede the board.--No person (including a 
        State or political subdivision) may impede the ability of the 
        Board (including the director of family support services 
        designated for an accident under subsection (a)(1)), or an 
        organization designated for an accident under subsection (a)(2), 
        to carry out its responsibilities under this section or the 
        ability of the families of passengers involved in the accident 
        to have contact with one another.
            ``(2) Unsolicited communications.--In the event of an 
        accident involving an air carrier providing interstate or 
        foreign air transportation, no unsolicited communication 
        concerning a potential action for personal injury or wrongful 
        death may be made by an attorney or any potential party to the 
        litigation to an individual injured in the accident, or to a 
        relative of an individual involved in the accident, before the 
        30th day following the date of the accident.

    ``(h) Definitions.--In this section, the following definitions 
apply:
            ``(1) Aircraft accident.--The term `aircraft accident' means 
        any aviation disaster regardless of its cause or suspected 
        cause.
            ``(2) Passenger.--The term `passenger' includes an employee 
        of an air carrier aboard an aircraft.''.

[[Page 110 STAT. 3267]]

            (2) Conforming amendment.--The table of sections for such 
        chapter is amended by inserting after the item relating to 
        section 1135 the following:

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

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

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

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

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

    ``(a) Submission of Plans.--Not later than 6 months after the date 
of the enactment of this section, each air carrier holding a certificate 
of public convenience and necessity under section 41102 of this title 
shall submit to the Secretary and the Chairman of the National 
Transportation Safety Board a plan for addressing the needs of the 
families of passengers involved in any aircraft accident involving an 
aircraft of the air carrier and resulting in a major loss of life.
    ``(b) Contents of Plans.--A plan to be submitted by an air carrier 
under subsection (a) shall include, at a minimum, the following:
            ``(1) A plan for publicizing a reliable, toll-free telephone 
        number, and for providing staff, to handle calls from the 
        families of the passengers.
            ``(2) A process for notifying the families of the 
        passengers, before providing any public notice of the names of 
        the passengers, either by utilizing the services of the 
        organization designated for the accident under section 
        1136(a)(2) of this title or the services of other suitably 
        trained individuals.
            ``(3) An assurance that the notice described in paragraph 
        (2) will be provided to the family of a passenger as soon as the 
        air carrier has verified that the passenger was aboard the 
        aircraft (whether or not the names of all of the passengers have 
        been verified) and, to the extent practicable, in person.
            ``(4) An assurance that the air carrier will provide to the 
        director of family support services designated for the accident 
        under section 1136(a)(1) of this title, and to the organization 
        designated for the accident under section 1136(a)(2) of this 
        title, immediately upon request, a list (which is based on the 
        best available information at the time of the request) of the 
        names of the passengers aboard the aircraft (whether or not such 
        names have been verified), and will periodically update the 
        list.
            ``(5) An assurance that the family of each passenger will be 
        consulted about the disposition of all remains and personal 
        effects of the passenger within the control of the air carrier.
            ``(6) An assurance that if requested by the family of a 
        passenger, any possession of the passenger within the control of 
        the air carrier (regardless of its condition) will be returned 
        to the family unless the possession is needed for the accident 
        investigation or any criminal investigation.

[[Page 110 STAT. 3268]]

            ``(7) An assurance that any unclaimed possession of a 
        passenger within the control of the air carrier will be retained 
        by the air carrier for at least 18 months.
            ``(8) An assurance that the family of each passenger will be 
        consulted about construction by the air carrier of any monument 
        to the passengers, including any inscription on the monument.
            ``(9) An assurance that the treatment of the families of 
        nonrevenue passengers (and any other victim of the accident) 
        will be the same as the treatment of the families of revenue 
        passengers.
            ``(10) An assurance that the air carrier will work with any 
        organization designated under section 1136(a)(2) of this title 
        on an ongoing basis to ensure that families of passengers 
        receive an appropriate level of services and assistance 
        following each accident.
            ``(11) An assurance that the air carrier will provide 
        reasonable compensation to any organization designated under 
        section 1136(a)(2) of this title for services provided by the 
        organization.
            ``(12) An assurance that the air carrier will assist the 
        family of a passenger in traveling to the location of the 
        accident and provide for the physical care of the family while 
        the family is staying at such location.
            ``(13) An assurance that the air carrier will commit 
        sufficient resources to carry out the plan.

    ``(c) Certificate Requirement.--After the date that is 6 months 
after the date of the enactment of this section, the Secretary may not 
approve an application for a certificate of public convenience and 
necessity under section 41102 of this title unless the applicant has 
included as part of such application a plan that meets the requirements 
of subsection (b).
    ``(d) Limitation on Liability.--An air carrier shall not be liable 
for damages in any action brought in a Federal or State court arising 
out of the performance of the air carrier in preparing or providing a 
passenger list pursuant to a plan submitted by the air carrier under 
subsection (b), unless such liability was caused by conduct of the air 
carrier which was grossly negligent or which constituted intentional 
misconduct.
    ``(e) Aircraft Accident and Passenger Defined.--In this section, the 
terms `aircraft accident' and `passenger' have the meanings such terms 
have in section 1136 of this title.''.
    (b) Conforming Amendment.--The table of sections for such chapter is 
amended by adding at the end the following:

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

SEC. 704. <<NOTE: 49 USC 41113 note.>> ESTABLISHMENT OF TASK FORCE.

    (a) Establishment.--The Secretary of Transportation, in cooperation 
with the National Transportation Safety Board, the Federal Emergency 
Management Agency, the American Red Cross, air carriers, and families 
which have been involved in aircraft accidents shall establish a task 
force consisting of representatives of such entities and families, 
representatives of air carrier employees, and representatives of such 
other entities as the Secretary considers appropriate.
    (b) Guidelines and Recommendations.--The task force established 
pursuant to subsection (a) shall develop--

[[Page 110 STAT. 3269]]

            (1) guidelines to assist air carriers in responding to 
        aircraft accidents;
            (2) recommendations on methods to ensure that attorneys and 
        representatives of media organizations do not intrude on the 
        privacy of families of passengers involved in an aircraft 
        accident;
            (3) recommendations on methods to ensure that the families 
        of passengers involved in an aircraft accident who are not 
        citizens of the United States receive appropriate assistance;
            (4) recommendations on methods to ensure that State mental 
        health licensing laws do not act to prevent out-of-state mental 
        health workers from working at the site of an aircraft accident 
        or other related sites;
            (5) recommendations on the extent to which military experts 
        and facilities can be used to aid in the identification of the 
        remains of passengers involved in an aircraft accident; and
            (6) recommendations on methods to improve the timeliness of 
        the notification provided by air carriers to the families of 
        passengers involved in an aircraft accident, including--
                    (A) an analysis of the steps that air carriers would 
                have to take to ensure that an accurate list of 
                passengers on board the aircraft would be available 
                within 1 hour of the accident and an analysis of such 
                steps to ensure that such list would be available within 
                3 hours of the accident;
                    (B) an analysis of the added costs to air carriers 
                and travel agents that would result if air carriers were 
                required to take the steps described in subparagraph 
                (A);
                    (C) an analysis of any inconvenience to passengers, 
                including flight delays, that would result if air 
                carriers were required to take the steps described in 
                subparagraph (A); and
                    (D) an analysis of the implications for personal 
                privacy that would result if air carriers were required 
                to take the steps described in subparagraph (A).

    (c) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Secretary shall transmit to Congress a report 
containing the model plan and recommendations developed by the task 
force under subsection (b).

SEC. 705. <<NOTE: 49 USC 41113 note.>> LIMITATION ON STATUTORY 
            CONSTRUCTION.

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

 TITLE <<NOTE: Airport Revenue Protection Act of 1996.>> VIII--AIRPORT 
REVENUE PROTECTION

SEC. 801. <<NOTE: 49 USC 40101 note.>> SHORT TITLE.

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

[[Page 110 STAT. 3270]]

SEC. 802. <<NOTE: 49 USC 47107 note.>> FINDINGS; PURPOSE.

    (a) In General.--Congress finds that--
            (1) section 47107 of title 49, United States Code, prohibits 
        the diversion of certain revenue generated by a public airport 
        as a condition of receiving a project grant;
            (2) a grant recipient that uses airport revenue for purposes 
        that are not airport related in a manner inconsistent with 
        chapter 471 of title 49, United States Code, illegally diverts 
        airport revenues;
            (3) any diversion of airport revenues in violation of the 
        condition referred to in paragraph (1) undermines the interest 
        of the United States in promoting a strong national air 
        transportation system that is responsive to the needs of airport 
        users;
            (4) the Secretary and the Administrator have not enforced 
        airport revenue diversion rules adequately and must have 
        additional regulatory tools to increase enforcement efforts; and
            (5) sponsors who have been found to have illegally diverted 
        airport revenues--
                    (A) have not reimbursed or made restitution to 
                airports in a timely manner; and
                    (B) must be encouraged to do so.

    (b) Purpose.--The purpose of this title is to ensure that airport 
users are not burdened with hidden taxation for unrelated municipal 
services and activities by--
            (1) eliminating the ability of any State or political 
        subdivision thereof that is a recipient of a project grant to 
        divert airport revenues for purposes that are not related to an 
        airport, in violation of section 47107 of title 49, United 
        States Code;
            (2) imposing financial reporting requirements that are 
        designed to identify instances of illegal diversions referred to 
        in paragraph (1);
            (3) establishing a statute of limitations for airport 
        revenue diversion actions;
            (4) clarifying limitations on revenue diversion that are 
        permitted under chapter 471 of title 49, United States Code; and
            (5) establishing clear penalties and enforcement mechanisms 
        for identifying and prosecuting airport revenue diversion.

SEC. 803. <<NOTE: 49 USC 47107 note.>> DEFINITIONS.

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

[[Page 110 STAT. 3271]]

SEC. 804. RESTRICTION ON USE OF AIRPORT REVENUES.

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

``Sec. 47133. Restriction on use of revenues

    ``(a) Prohibition.--Local taxes on aviation fuel (except taxes in 
effect on December 30, 1987) or the revenues generated by an airport 
that is the subject of Federal assistance may not be expended for any 
purpose other than the capital or operating costs of--
            ``(1) the airport;
            ``(2) the local airport system; or
            ``(3) any other local facility that is owned or operated by 
        the person or entity that owns or operates the airport that is 
        directly and substantially related to the air transportation of 
        passengers or property.

    ``(b) Exceptions.--Subsection (a) shall not apply if a provision 
enacted not later than September 2, 1982, in a law controlling financing 
by the airport owner or operator, or a covenant or assurance in a debt 
obligation issued not later than September 2, 1982, by the owner or 
operator, provides that the revenues, including local taxes on aviation 
fuel at public airports, from any of the facilities of the owner or 
operator, including the airport, be used to support not only the airport 
but also the general debt obligations or other facilities of the owner 
or operator.
    ``(c) Rule of Construction.--Nothing in this section may be 
construed to prevent the use of a State tax on aviation fuel to support 
a State aviation program or the use of airport revenue on or off the 
airport for a noise mitigation purpose.''.
    (b) Penalties.--Section 46301(a)(5) is amended to read as follows:
            ``(5) Penalty for diversion of aviation revenues.--The 
        amount of a civil penalty assessed under this section for a 
        violation of section 47107(b) of this title (or any assurance 
        made under such section) or section 47133 of this title may be 
        increased above the otherwise applicable maximum amount under 
        this section to an amount not to exceed 3 times the amount of 
        revenues that are used in violation of such section.''.

    (c) Conforming Amendment.--The table of sections for such subchapter 
is amended by inserting after the item relating to section 47132, as 
added by section 142 of this Act, the following:

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

SEC. 805. REGULATIONS; AUDITS AND ACCOUNTABILITY.

    (a) In General.--Section 47107 is amended by adding at the end the 
following:
    ``(m) Audit Certification.--
            ``(1) In general.--The Secretary of Transportation, acting 
        through the Administrator of the Federal Aviation 
        Administration, shall promulgate regulations that require a 
        recipient of a project grant (or any other recipient of Federal 
        financial assistance that is provided for an airport) to include 
        as part of an annual audit conducted under sections 7501 through 
        7505 of title 31, a review and opinion of the review concerning 
        the funding activities with respect to an airport that is the 
        subject of the project grant (or other Federal financial 

[[Page 110 STAT. 3272]]

        assistance) and the sponsors, owners, or operators (or other 
        recipients) involved.
            ``(2) Content of review.--A review conducted under paragraph 
        (1) shall provide reasonable assurances that funds paid or 
        transferred to sponsors are paid or transferred in a manner 
        consistent with the applicable requirements of this chapter and 
        any other applicable provision of law (including regulations 
        promulgated by the Secretary or the Administrator).
            ``(3) Requirements for audit report.--The report submitted 
        to the Secretary under this subsection shall include a specific 
        determination and opinion regarding the appropriateness of the 
        disposition of airport funds paid or transferred to a sponsor.

    ``(n) Recovery of Illegally Diverted Funds.--
            ``(1) In general.--Not later than 180 days after the 
        issuance of an audit or any other report that identifies an 
        illegal diversion of airport revenues (as determined under 
        subsections (b) and (l) and section 47133), the Secretary, 
        acting through the Administrator, shall--
                    ``(A) review the audit or report;
                    ``(B) perform appropriate factfinding; and
                    ``(C) conduct a hearing and render a final 
                determination concerning whether the illegal diversion 
                of airport revenues asserted in the audit or report 
                occurred.
            ``(2) Notification.--Upon making such a finding, the 
        Secretary, acting through the Administrator, shall provide 
        written notification to the sponsor and the airport of--
                    ``(A) the finding; and
                    ``(B) the obligations of the sponsor to reimburse 
                the airport involved under this paragraph.
            ``(3) Administrative action.--The Secretary may withhold any 
        amount from funds that would otherwise be made available to the 
        sponsor, including funds that would otherwise be made available 
        to a State, municipality, or political subdivision thereof 
        (including any multimodal transportation agency or transit 
        authority of which the sponsor is a member entity) as part of an 
        apportionment or grant made available pursuant to this title, if 
        the sponsor--
                    ``(A) receives notification that the sponsor is 
                required to reimburse an airport; and
                    ``(B) has had an opportunity to reimburse the 
                airport, but has failed to do so.
            ``(4) Civil action.--If a sponsor fails to pay an amount 
        specified under paragraph (3) during the 180-day period 
        beginning on the date of notification and the Secretary is 
        unable to withhold a sufficient amount under paragraph (3), the 
        Secretary, acting through the Administrator, may initiate a 
        civil action under which the sponsor shall be liable for civil 
        penalty in an amount equal to the illegal diversion in question 
        plus interest (as determined under subsection (o)).
            ``(5) Disposition of penalties.--
                    ``(A) Amounts withheld.--The Secretary or the 
                Administrator shall transfer any amounts withheld under 
                paragraph (3) to the Airport and Airway Trust Fund.
                    ``(B) Civil penalties.--With respect to any amount 
                collected by a court in a civil action under paragraph 
                (4), the court shall cause to be transferred to the 
                Airport and

[[Page 110 STAT. 3273]]

                Airway Trust Fund any amount collected as a civil 
                penalty under paragraph (4).
            ``(6) Reimbursement.--The Secretary, acting through the 
        Administrator, shall, as soon as practicable after any amount is 
        collected from a sponsor under paragraph (4), cause to be 
        transferred from the Airport and Airway Trust Fund to an airport 
        affected by a diversion that is the subject of a civil action 
        under paragraph (4), reimbursement in an amount equal to the 
        amount that has been collected from the sponsor under paragraph 
        (4) (including any amount of interest calculated under 
        subsection (o)).
            ``(7) Statute of limitations.--No person may bring an action 
        for the recovery of funds illegally diverted in violation of 
        this section (as determined under subsections (b) and (l)) or 
        section 47133 after the date that is 6 years after the date on 
        which the diversion occurred.

    ``(o) Interest.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary, acting through the Administrator, shall charge a 
        minimum annual rate of interest on the amount of any illegal 
        diversion of revenues referred to in subsection (n) in an amount 
        equal to the average investment interest rate for tax and loan 
        accounts of the Department of the Treasury (as determined by the 
        Secretary of the Treasury) for the applicable calendar year, 
        rounded to the nearest whole percentage point.
            ``(2) Adjustment of interest rates.--If, with respect to a 
        calendar quarter, the average investment interest rate for tax 
        and loan accounts of the Department of the Treasury exceeds the 
        average investment interest rate for the immediately preceding 
        calendar quarter, rounded to the nearest whole percentage point, 
        the Secretary of the Treasury may adjust the interest rate 
        charged under this subsection in a manner that reflects that 
        change.
            ``(3) Accrual.--Interest assessed under subsection (n) shall 
        accrue from the date of the actual illegal diversion of revenues 
        referred to in subsection (n).
            ``(4) Determination of applicable rate.--The applicable rate 
        of interest charged under paragraph (1) shall--
                    ``(A) be the rate in effect on the date on which 
                interest begins to accrue under paragraph (3); and
                    ``(B) remain at a rate fixed under subparagraph (A) 
                during the duration of the indebtedness.

    ``(p) Payment by Airport to Sponsor.--If, in the course of an audit 
or other review conducted under this section, the Secretary or the 
Administrator determines that an airport owes a sponsor funds as a 
result of activities conducted by the sponsor or expenditures by the 
sponsor for the benefit of the airport, interest on that amount shall be 
determined in the same manner as provided in paragraphs (1) through (4) 
of subsection (o), except that the amount of any interest assessed under 
this subsection shall be determined from the date on which the Secretary 
or the Administrator makes that determination.''.
    (b) Revision <<NOTE: 49 USC 47107 note.>> of Policies and 
Procedures; Deadlines.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary, acting through the 
        Administrator, shall revise the policies and procedures 
        established under section 47107(l) of title 49, United States

[[Page 110 STAT. 3274]]

        Code, to take into account the amendments made to that section 
        by this title.
            (2) Statute of limitations.--Section 47107(l) is amended by 
        adding at the end the following:
            ``(5) Statute of limitations.--In addition to the statute of 
        limitations specified in subsection (n)(7), with respect to 
        project grants made under this chapter--
                    ``(A) any request by a sponsor to any airport for 
                additional payments for services conducted off of the 
                airport or for reimbursement for capital contributions 
                or operating expenses shall be filed not later than 6 
                years after the date on which the expense is incurred; 
                and
                    ``(B) any amount of airport funds that are used to 
                make a payment or reimbursement as described in 
                subparagraph (A) after the date specified in that 
                subparagraph shall be considered to be an illegal 
                diversion of airport revenues that is subject to 
                subsection (n).''.

SEC. 806. CONFORMING AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.

    Section 9502 <<NOTE: 26 USC 9502.>> of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``and'' at the end of subsection (b)(3);
            (2) by striking the period at the end of subsection (b)(4) 
        and inserting ``, and''; and
            (3) by adding at the end of subsection (b) the following:
            ``(5) amounts determined by the Secretary of the Treasury to 
        be equivalent to the amounts of civil penalties collected under 
        section 47107(n) of title 49, United States Code.''; and
            (4) by adding at the end of subsection (d) the following:
            ``(5) Transfers from the airport and airway trust fund on 
        account of certain airports.--The Secretary of the Treasury may 
        transfer from the Airport and Airway Trust Fund to the Secretary 
        of Transportation or the Administrator of the Federal Aviation 
        Administration an amount to make a payment to an airport 
        affected by a diversion that is the subject of an administrative 
        action under paragraph (3) or a civil action under paragraph (4) 
        of section 47107(n) of title 49, United States Code.''.

    TITLE IX--METROPOLITAN <<NOTE: Metropolitan Washington Airports 
Amendments Act of 1996.>> WASHINGTON AIRPORTS

SEC. 901. SHORT TITLE.

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

SEC. 902. USE OF LEASED PROPERTY.

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

[[Page 110 STAT. 3275]]

SEC. 903. BOARD OF DIRECTORS.

    (a) Appointment of Additional Members.--Section 6007(e)(1) of the 
Metropolitan Washington Airports Act of 1986 (49 U.S.C. App. 2456(e)(1)) 
is amended--
            (1) in the matter preceding subparagraph (A) by striking 
        ``11'' and inserting ``13'';
            (2) in subparagraph (D) by striking ``one member'' and 
        inserting ``three members''.

    (b) Restrictions.--Section 6007(e)(2) of the Metropolitan Washington 
Airports Act of 1986 (49 U.S.C. App. 2456(e)(2)) is amended by striking 
``except that'' and all that follows through the period and inserting 
``except that the members appointed by the President shall be registered 
voters of States other than Maryland, Virginia, or the District of 
Columbia.''.
    (c) Terms.--Section 6007(e)(3) of the Metropolitan Washington 
Airports Act of 1986 (49 U.S.C. App. 2456(e)(3)) is amended--
            (1) in subparagraph (B) by striking ``and'' at the end;
            (2) in subparagraph (C) by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(D) <<NOTE: President.>> by the President after 
                the date of the enactment of this subparagraph, 1 shall 
                be appointed for 4 years.
        A member may serve after the expiration of that member's term 
        until a successor has taken office.''.

    (d) Vacancies.--Section 6007(e) of the Metropolitan Washington 
Airports Act of 1986 (49 U.S.C. App. 2456(e)) is amended by 
redesignating paragraphs (4) and (5) as paragraphs (8) and (9), 
respectively, and by inserting after paragraph (3) the following:
            ``(4) Vacancies.--A vacancy in the board of directors shall 
        be filled in the manner in which the original appointment was 
        made. Any member appointed to fill a vacancy occurring before 
        the expiration of the term for which the member's predecessor 
        was appointed shall be appointed only for the remainder of such 
        term.''.

    (e) Political Parties of Presidential Appointees.--Section 6007(e) 
of the Metropolitan Washington Airports Act of 1986 (49 U.S.C. App. 
2456(e)) is amended by inserting after paragraph (4), as inserted by 
subsection (d) of this section, the following:
            ``(5) Political parties of presidential appointees.--Not 
        more than 2 of the members of the board appointed by the 
        President may be of the same political party.''.

    (f) Duties of Presidential Appointees.--Section 6007(e) of the 
Metropolitan Washington Airports Act of 1986 (49 U.S.C. App. 2456(e)) is 
amended by inserting after paragraph (5), as inserted by subsection (e) 
of this section, the following:
            ``(6) Duties of presidential appointees.--In carrying out 
        their duties on the board, members of the board appointed by the 
        President shall ensure that adequate consideration is given to 
        the national interest.''.

    (g) Deadline for Presidential Appointments.--Section 6007(e) of the 
Metropolitan Washington Airports Act of 1986 (49 U.S.C. App. 2456(e)) is 
amended by inserting after paragraph (6), as inserted by subsection (f) 
of this section, the following:
            ``(7) Deadline for presidential appointments.--
                    ``(A) Deadline.--The members to be appointed to the 
                board by the President under section 6007(e)(1)(D) shall 
                be appointed on or before September 30, 1997.

[[Page 110 STAT. 3276]]

                    ``(B) Applicability of limitations.--If the deadline 
                of subparagraph (A) is not met, the Secretary and the 
                Airports Authority shall be subject to the limitations 
                described in subsection (i) for the period beginning on 
                October 1, 1997, and ending on the first day on which 
                all of the members referred to in subparagraph (A) have 
                been appointed.''.

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

SEC. 904. TERMINATION OF BOARD OF REVIEW.

    (a) In General.--Section 6007 of the Metropolitan Washington 
Airports Act of 1986 (49 U.S.C. App. 2456) is amended by striking 
subsections (f) and (h) and redesignating subsections (g) and (i) as 
subsections (f) and (g), respectively.
    (b) Staff.--Section 6007 of the Metropolitan Washington Airports Act 
of 1986 (49 U.S.C. App. 2456) is amended--
            (1) by inserting paragraph (8) of subsection (f), as in 
        effect before the amendment made by subsection (a) of this 
        section, after subsection (g), as redesignated by such 
        subsection (a);
            (2) by moving such paragraph 2 ems to the left and 
        redesignating such paragraph as subsection (h); and
            (3) in subsection (h), as so redesignated--
                    (A) in the first sentence by striking ``The Board of 
                Review'' and inserting ``To assist the Secretary in 
                carrying out this Act, the Secretary''; and
                    (B) in the second sentence by striking ``Board'' and 
                inserting ``Secretary''.

    (c) Conforming Amendments.--The Metropolitan Washington Airports Act 
of 1986 (49 U.S.C. App. 2451 et seq.) is amended--
            (1) in section 6009(b) by striking ``or by reason'' and all 
        that follows before the period; and
            (2) in section 6011 by striking ``Except as provided in 
        section 6007(h), if'' and inserting ``If''.

    (d) Protection of Certain Actions.--Actions taken by the 
Metropolitan Washington Airports Authority and required to be submitted 
to the Board of Review pursuant to section 6007(f)(4) of the 
Metropolitan Washington Airports Act of 1986 before the date of the 
enactment of this Act shall remain in effect and shall not be set aside 
solely by reason of a judicial order invalidating certain functions of 
the Board of Review.

SEC. 905. LIMITATIONS.

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

[[Page 110 STAT. 3277]]

SEC. 906. USE OF DULLES AIRPORT ACCESS HIGHWAY.

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

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

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

SEC. 907. EFFECT OF JUDICIAL ORDER.

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

``SEC. 6014. EFFECT OF JUDICIAL ORDER.

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

SEC. 908. AMENDMENT OF LEASE.

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

SEC. 909. SENSE OF THE SENATE.

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

[[Page 110 STAT. 3278]]

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

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

    (a) Extension of Expenditure Authority.--Paragraph (1) of <<NOTE: 26 
USC 9502.>> section 9502(d) of the Internal Revenue Code of 1986 is 
amended by striking ``October 1, 1996'' and inserting ``October 1, 
1998''.

    (b) Extension of Trust Fund Purposes.--Subparagraph (A) of section 
9502(d)(1) of such Code is amended by inserting before the semicolon at 
the end ``or the Federal Aviation Reauthorization Act of 1996''.

    TITLE XI--FAA <<NOTE: FAA Research, Engineering, and Development 
Management Reform Act of 1996.>> RESEARCH, ENGINEERING, AND DEVELOPMENT

SEC. 1101. <<NOTE: 49 USC 40101 note.>> SHORT TITLE.

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

SEC. 1102. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 1103. RESEARCH PRIORITIES.

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

[[Page 110 STAT. 3279]]

        of research and development activities carried out by the 
        Federal Aviation Administration.

    ``(2)''.

SEC. 1104. RESEARCH ADVISORY COMMITTEE.

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

SEC. 1105. NATIONAL AVIATION RESEARCH PLAN.

    Section 44501(c) is amended--
            (1) in paragraph (2)(A) by striking ``15-year'' and 
        inserting in lieu thereof ``5-year'';
            (2) by amending subparagraph (B) to read as follows:

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

                   TITLE XII--MISCELLANEOUS PROVISIONS

SEC. 1201. PURCHASE OF HOUSING UNITS.

    Section 40110 is amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following:

    ``(b) Purchase of Housing Units.--
            ``(1) Authority.--In carrying out this part, the 
        Administrator may purchase a housing unit (including a 
        condominium

[[Page 110 STAT. 3280]]

        or a housing unit in a building owned by a cooperative) that is 
        located outside the contiguous United States if the cost of the 
        unit is $300,000 or less.
            ``(2) Adjustments for inflation.--For fiscal years beginning 
        after September 30, 1997, the Administrator may adjust the 
        dollar amount specified in paragraph (1) to take into account 
        increases in local housing costs.
            ``(3) Continuing obligations.--Notwithstanding section 1341 
        of title 31, the Administrator may purchase a housing unit under 
        paragraph (1) even if there is an obligation thereafter to pay 
        necessary and reasonable fees duly assessed upon such unit, 
        including fees related to operation, maintenance, taxes, and 
        insurance.
            ``(4) Certification to congress.--The Administrator may 
        purchase a housing unit under paragraph (1) only if, at least 30 
        days before completing the purchase, the Administrator transmits 
        to the Committee on Transportation and Infrastructure of the 
        House of Representatives and the Committee on Commerce, Science, 
        and Transportation of the Senate a report containing--
                    ``(A) a description of the housing unit and its 
                price;
                    ``(B) a certification that the price does not exceed 
                the median price of housing units in the area; and
                    ``(C) a certification that purchasing the housing 
                unit is the most cost-beneficial means of providing 
                necessary accommodations in carrying out this part.
            ``(5) Payment of fees.--The Administrator may pay, when due, 
        fees resulting from the purchase of a housing unit under this 
        subsection from any amounts made available to the 
        Administrator.''.

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

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

SEC. 1203. <<NOTE: 49 USC 47101 note.>> AUTHORITY TO CLOSE AIRPORT 
            LOCATED NEAR CLOSED OR REALIGNED MILITARY BASE.

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

[[Page 110 STAT. 3281]]

SEC. 1204. GADSDEN AIR DEPOT, ALABAMA.

    (a) Authority To Grant Waivers.--Notwithstanding section 16 of the 
Federal Airport Act (as in effect on May 4, 1949), the Secretary is 
authorized, subject to the provisions of section 47153 of title 49, 
United States Code, and the provisions of subsection (b) of this 
section, to waive any of the terms contained in the deed of conveyance 
dated May 4, 1949, under which the United States conveyed certain 
property to the city of Gadsden, Alabama, for airport purposes.
    (b) Conditions.--Any waiver granted under subsection (a) shall be 
subject to the following conditions:
            (1) The city of Gadsden, Alabama, shall agree that, in 
        conveying any interest in the property which the United States 
        conveyed to the city by a deed described in subsection (a), the 
        city will receive an amount for such interest which is equal to 
        the fair market value of such interest (as determined pursuant 
        to regulations issued by the Secretary).
            (2) Any such amount so received by the city shall be used by 
        the city for the development, improvement, operation, or 
        maintenance of a public airport, lands (including any 
        improvements thereto) which produce revenues that are used for 
        airport development purposes, or both.

SEC. 1205. REGULATIONS AFFECTING INTRASTATE AVIATION IN ALASKA.

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

SEC. 1206. WESTCHESTER COUNTY AIRPORT, NEW YORK.

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

SEC. 1207. BEDFORD AIRPORT, PENNSYLVANIA.

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

SEC. 1208. WORCESTER MUNICIPAL AIRPORT, MASSACHUSETTS.

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

[[Page 110 STAT. 3282]]

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

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

SEC. 1210. AIRCRAFT NOISE OMBUDSMAN.

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

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

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

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

    (a) Findings.--The Senate finds that--
            (1) Congress is responsible for ensuring that the financial 
        needs of the Federal Aviation Administration, the agency that 
        performs the critical function of overseeing the Nation's air 
        traffic control system and ensuring the safety of air travelers 
        in the United States, are met;
            (2) aviation excise taxes that constitute the Airport and 
        Airway Trust Fund, which provides most of the funding for the 
        Federal Aviation Administration, have expired;
            (3) the surplus in the Airport and Airway Trust Fund will be 
        spent by the Federal Aviation Administration by December 1996;
            (4) the existing system of funding the Federal Aviation 
        Administration will not provide the agency with sufficient 
        short-term or long-term funding;
            (5) this Act creates a sound process to review Federal 
        Aviation Administration funding and develop a funding system to 
        meet the Federal Aviation Administration's long-term funding 
        needs; and

[[Page 110 STAT. 3283]]

            (6) without immediate action by Congress to ensure that the 
        Federal Aviation Administration's financial needs are met, air 
        travelers' confidence in the system could be undermined.

    (b) Sense of the Senate.--It is the sense of the Senate that there 
should be an immediate enactment of an 18-month reinstatement of the 
aviation excise taxes to provide short-term funding for the Federal 
Aviation Administration.

SEC. 1213. RURAL AIR FARE STUDY.

    (a) In General.--The Secretary shall conduct a study to--
            (1) compare air fares paid (calculated as both actual and 
        adjusted air fares) for air transportation on flights conducted 
        by commercial air carriers--
                    (A) between--
                          (i) nonhub airports located in small 
                      communities; and
                          (ii) large hub airports; and
                    (B) between large hub airports;
            (2) analyze--
                    (A) the extent to which passenger service that is 
                provided from nonhub airports is provided on--
                          (i) regional commuter commercial air carriers; 
                      or
                          (ii) major air carriers;
                    (B) the type of aircraft employed in providing 
                passenger service at nonhub airports; and
                    (C) whether there is competition among commercial 
                air carriers with respect to the provision of air 
                service to passengers from nonhub airports.

    (b) Findings.--The Secretary shall include in the report of the 
study conducted under subsection (a) findings concerning--
            (1) whether passengers who use commercial air carriers to 
        and from rural areas (as defined by the Secretary) pay a 
        disproportionately greater price for that transportation than 
        passengers who use commercial air carriers between urban areas 
        (as defined by the Secretary);
            (2) the nature of competition, if any, in rural markets (as 
        defined by the Secretary) for commercial air carriers;
            (3) whether a relationship exists between higher air fares 
        and competition among commercial air carriers for passengers 
        traveling on jet aircraft from small communities (as defined by 
        the Secretary) and, if such a relation exists, the nature of 
        that relationship;
            (4) the number of small communities that have lost air 
        service as a result of the deregulation of commercial air 
        carriers with respect to air fares;
            (5) the number of small communities served by airports with 
        respect to which, after commercial air carrier fares were 
        deregulated, jet aircraft service was replaced by turboprop 
        aircraft service; and
            (6) where such replacement occurred, any corresponding 
        decreases in available seat capacity for consumers at the 
        airports referred to in that subparagraph.

    (c) Report.--Not later than 60 days after the date of the enactment 
of this Act, the Secretary shall submit a final report on the study 
carried out under subsection (a) to the Committee on Commerce, Science, 
and Transportation of the Senate and the

[[Page 110 STAT. 3284]]

Committee on Transportation and Infrastructure of the House of 
Representatives.
    (d) Definitions.--For purposes of this section, the following 
definitions apply:
            (1) Adjusted air fare.--The term ``adjusted air fare'' means 
        an actual air fare that is adjusted for distance traveled by a 
        passenger.
            (2) Air carrier.--The term ``air carrier'' is defined in 
        section 40102(a)(2) of title 49, United States Code.
            (3) Airport.--The term ``airport'' is defined in section 
        40102(9) of such title.
            (4) Commercial air carrier.--The term ``commercial air 
        carrier'' means an air carrier that provides air transportation 
        for commercial purposes (as determined by the Secretary).
            (5) Hub airport.--The term ``hub airport'' is defined in 
        section 41731(a)(2) of such title.
            (6) Large hub airport.--The term ``large hub airport'' shall 
        be defined by the Secretary but the definition may not include a 
        small hub airport, as that term is defined in section 
        41731(a)(5) of such title.
            (7) Major air carrier.--The term ``major air carrier'' shall 
        be defined by the Secretary.
            (8) Nonhub airport.--The term ``nonhub airport'' is defined 
        in section 41731(a)(4) of such title.
            (9) Regional commuter air carrier.--The term ``regional 
        commuter air carrier'' shall be defined by the Secretary.

SEC. 1214. CARRIAGE OF CANDIDATES IN STATE AND LOCAL ELECTIONS.

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

SEC. 1215. SPECIAL FLIGHT RULES IN THE VICINITY OF GRAND CANYON NATIONAL 
            PARK.

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

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

    (a) Hickory, North Carolina Tower.--
            (1) Transfer.--The Administrator of the Federal Aviation 
        Administration may transfer any title, right, or interest the 
        United States has in the air traffic control tower located at 
        the Hickory Regional Airport to the City of Hickory, North 
        Carolina, for the purpose of enabling the city to provide air 
        traffic control services to operators of aircraft.
            (2) Study.--The Administrator shall conduct a study to 
        determine whether the number of operations at Hickory Regional 
        Airport meet the criteria for contract towers and shall

[[Page 110 STAT. 3285]]

        certify in writing to the Committee on Commerce, Science, and 
        Transportation of the Senate and the Committee on Commerce and 
        Infrastructure of the House of Representatives whether that 
        airport meets those criteria.

    (b) New Bern-Craven County Station.--The Administrator shall not 
close the New Bern-Craven County flight services station or the Hickory 
Regional Airport flight service station unless the Administrator 
certifies in writing to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives that such closure will 
not result in a degradation of air safety and that it will reduce costs 
to taxpayers.
    (c) Pierre, South Dakota Station.--The Administrator shall not close 
the Pierre, South Dakota Regional Airport flight service station unless 
following the 180th day after the date of the enactment of this Act the 
Administrator certifies in writing to the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on 
Transportation and Infrastructure of the House of Representatives that 
such closure will not result in a degradation of air safety, air 
service, or the loss of meteorological services or data that cannot 
otherwise be obtained in a more cost-effective manner, and that it will 
reduce costs to taxpayers.

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

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

SEC. 1218. TRAIN WHISTLE REQUIREMENTS.

    (a) In General.--Section 20153 is amended by adding at the end the 
following:
    ``(i) Regulations.--In issuing regulations under this section, the 
Secretary--
            ``(1) shall take into account the interest of communities 
        that--
                    ``(A) have in effect restrictions on the sounding of 
                a locomotive horn at highway-rail grade crossings; or
                    ``(B) have not been subject to the routine (as 
                defined by the Secretary) sounding of a locomotive horn 
                at highway-rail grade crossings;
            ``(2) shall work in partnership with affected communities to 
        provide technical assistance and shall provide a reasonable 
        amount of time for local communities to install supplementary 
        safety measures, taking into account local safety initiatives 
        (such as public awareness initiatives and highway-rail grade 
        crossing traffic law enforcement programs) subject to such terms 
        and conditions as the Secretary deems necessary, to protect 
        public safety; and

[[Page 110 STAT. 3286]]

            ``(3) may waive (in whole or in part) any requirement of 
        this section (other than a requirement of this subsection or 
        subsection (j)) that the Secretary determines is not likely to 
        contribute significantly to public safety.

    ``(j) Effective Date of Regulations.--Any regulations under this 
section shall not take effect before the 365th day following the date of 
publication of the final rule.''.

SEC. 1219. INCREASED FEES.

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

SEC. 1220. STRUCTURES INTERFERING WITH AIR COMMERCE.

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

SEC. 1221. HAWAII CARGO.

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

SEC. 1222. LIMITATION ON AUTHORITY OF STATES TO REGULATE GAMBLING 
            DEVICES ON VESSELS.

    Subsection (b)(2) of section 5 of the Act of January 2, 1951 
(commonly referred to as the ``Johnson Act'') (64 Stat. 1135, chapter 
1194; 15 U.S.C. 1175), is amended by adding at the end the following:
                    ``(C) Exclusion of certain voyages and segments.--
                Except for a voyage or segment of a voyage that occurs 
                within the boundaries of the State of Hawaii, a voyage 
                or segment of a voyage is not described in subparagraph

[[Page 110 STAT. 3287]]

                (B) if such voyage or segment includes or consists of a 
                segment--
                          ``(i) that begins and ends in the same State;
                          ``(ii) that is part of a voyage to another 
                      State or to a foreign country; and
                          ``(iii) in which the vessel reaches the other 
                      State or foreign country within 3 days after 
                      leaving the State in which such segment begins.''.

SEC. 1223. CLARIFYING AMENDMENT.

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

    Approved October 9, 1996.

LEGISLATIVE HISTORY--H.R. 3539 (S. 1994):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 104-714, Pt. 1 (Comm. on Transportation and 
Infrastructure) and 104-848 (Comm. of Conference).
SENATE REPORTS: No. 104-333 accompanying S. 1994 (Comm. on Commerce, 
Science, and Transportation).
CONGRESSIONAL RECORD, Vol. 142 (1996):
            Sept. 10, 11, considered and passed House.
            Sept. 18, considered and passed Senate, amended, in lieu of 
                S. 1994.
            Sept. 27, House agreed to conference report.
            Sept. 30-Oct. 3, Senate considered and agreed to conference 
                report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):
            Oct. 9, Presidential remarks and statement.

                                  <all>