FILE h670.ih
          HR 670 IH
          105th CONGRESS
          1st Session
          To amend title 49, United States Code, to permit States to impose
          fees to finance programs for providing air service to small
          communities.
                             IN THE HOUSE OF REPRESENTATIVES
                                    February 11, 1997
          Mr. BARRETT of Nebraska introduced the following bill; which was
              referred to the Committee on Transportation and Infrastructure
                                         A BILL
          To amend title 49, United States Code, to permit States to impose
          fees to finance programs for providing air service to small
          communities.
           Be it enacted by the Senate and House of
          Representatives of the United States of America in Congress
          assembled, 
          SECTION 1. SHORT TITLE.
            This Act may be cited as the `Small Community Air Service Act of
          1996'.
          SEC. 2. SMALL COMMUNITY AIR SERVICE FEES.
            (a) IN GENERAL- Chapter 401 of title 49, United States Code, is
          amended by adding at the end the following:
          `Sec. 40121. Small community air service fees
            `(a) IN GENERAL- The Secretary of Transportation may authorize
          under this section a State to impose a small community air service
          fee of $1, $2, or $3 on each paying passenger of an air carrier or
          foreign air carrier boarding an aircraft at an airport in the State
          to finance a small community air service program of the State.
            `(b) APPLICATIONS- 
                `(1) IN GENERAL- A State must submit to the Secretary an
              application for authority to impose a small community air
              service fee. The application shall contain such information and
              be in such form as the Secretary may require by regulation.
                `(2) NOTICE AND COMMENT- After receiving an application, the
              Secretary shall provide notice and an opportunity to air
              carriers, foreign air carriers, and other interested persons to
              comment on the application. The Secretary shall make a final
              decision on the application not later than 120 days after
              receiving it.
            `(c) LIMITATIONS ON APPROVING APPLICATIONS- The Secretary may
          approve an application that a State has submitted under subsection
          (b) only if the Secretary finds, based on the application, that--
                `(1) the small community air service program of the State
              meets the requirements of this section; and
                `(2) the amount of the proposed small community air service
              fee will result in revenue (including interest and other 
              returns on the revenue) that is not more than the amount
              necessary to finance the small community air service program.
            `(d) LIMITATIONS ON IMPOSING FEES- 
                `(1) TERMS TO BE PRESCRIBED BY THE SECRETARY- A State may
              impose a small community air service fee only--
                    `(A) if the Secretary approves an application that the
                  State has submitted under subsection (b); and
                    `(B) subject to terms the Secretary may prescribe to 
                  carry out the objectives of this section.
                `(2) SPECIFIC LIMITATIONS- A small community air service fee
              may not be collected from a passenger--
                    `(A) for more than two boardings on a one-way trip or a
                  trip in each direction of a round trip; or
                    `(B) enplaning at an airport if the passenger did not pay
                  for the air transportation which resulted in such
                  enplanement, including any case in which the passenger
                  obtained the ticket for the air transportation with a
                  frequent flier award coupon without monetary payment.
            `(e) REQUIREMENTS FOR SMALL COMMUNITY AIR SERVICE PROGRAM- 
                `(1) IN GENERAL- A small community air service program shall
              be designed to provide compensation to air carriers for
              providing air service to places that would not receive air
              service without such compensation. Such compensation may be 
              used to supplement compensation made available under subchapter
              II of chapter 417 of this title.
                `(2) ELIGIBLE PLACES- Decisions concerning individual places
              eligible for compensation under the small community air service
              program of a State and the level of air service provided to 
              such places shall be made by the State and shall not be subject
              to review by the Secretary.
            `(f) DEFINITIONS- For the purposes of this section, the following
          definitions apply:
                `(1) AIRPORT- The term `airport' has the same meaning given
              such term by section 47102.
                `(2) SMALL COMMUNITY AIR SERVICE FEE- The term `small
              community air service fee' means a fee imposed under this
              section.'.
            (b) AMENDMENT TO TABLE OF SECTIONS- The table of sections at the
          beginning of chapter 401 of such title is amended by adding at the
          end the following new item:
          `40121. Small community air service fees.'.
            (c) CONFORMING AMENDMENT- Section 40116(b) of title 49, United
          States Code, is amended by striking `and section 40117' and
          inserting `, section 40117, and section 40121'.
          SEC. 3. EFFECTIVE DATE.
            This Act and the amendments made by this Act shall take effect on
          the first day of the first fiscal year beginning after the date of
          the enactment of this Act.