American Association of Airport Executives &
Airports Council International - North America
Legislative Affairs
Representing the nation's airports in Washington, D.C.

 

Conference Report on H.R. 3539

Federal Aviation Reauthorization Act of 1996

              H.R.3539
          One Hundred Fourth Congress
          of the
          United States of America
          AT THE SECOND SESSION
          Begun and held at the City of Washington on Wednesday,
          the third day of January, one thousand nine hundred and ninety-six
          An Act
          To amend title 49, United States Code, to reauthorize programs of
          the Federal Aviation Administration, and for other purposes.
           [Italic->]   Be it enacted by the Senate and House of
          Representatives of the United States of America in Congress
          assembled, [<-Italic]
          SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
            (a) SHORT TITLE- This Act may be cited as the `Federal Aviation
          Reauthorization Act of 1996'.
            (b) TABLE OF CONTENTS- 
          Sec. 1. Short title; table of contents.
          Sec. 2. Amendments to title 49, United States Code.
          Sec. 3. Applicability.
                        TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS
                       SUBTITLE A--REAUTHORIZATION OF FAA PROGRAMS
          Sec. 101. Airport improvement program.
          Sec. 102. Airway facilities improvement program.
          Sec. 103. FAA operations.
                        SUBTITLE B--AIRPORT DEVELOPMENT FINANCING
          Sec. 121. Apportionments.
          Sec. 122. Discretionary fund.
          Sec. 123. Use of apportioned amounts.
          Sec. 124. Designating current and former military airports.
          Sec. 125. Period of applicability of amendments.
                  SUBTITLE C--AIRPORT IMPROVEMENT PROGRAM MODIFICATIONS
          Sec. 141. Intermodal planning.
          Sec. 142. Pavement maintenance program.
          Sec. 143. Access to airports by intercity buses.
          Sec. 144. Cost reimbursement for projects commenced prior to grant
              award.
          Sec. 145. Selection of projects for grants from discretionary fund.
          Sec. 146. Small airport fund.
          Sec. 147. State block grant program.
          Sec. 148. Innovative financing techniques.
          Sec. 149. Pilot program on private ownership of airports.
                                  TITLE II--FAA REFORM
          Sec. 201. Short title.
          Sec. 202. Definitions.
          Sec. 203. Effective date.
                             SUBTITLE A--GENERAL PROVISIONS
          Sec. 221. Findings.
          Sec. 222. Purposes.
          Sec. 223. Regulation of civilian air transportation and related
              services by the Federal Aviation Administration and Department
              of Transportation.
          Sec. 224. Regulations.
          Sec. 225. Personnel and services.
          Sec. 226. Contracts.
          Sec. 227. Facilities.
          Sec. 228. Property.
          Sec. 229. Transfers of funds from other Federal agencies.
          Sec. 230. Management Advisory Council.
            SUBTITLE B--FEDERAL AVIATION ADMINISTRATION STREAMLINING PROGRAMS
          Sec. 251. Review of acquisition management system.
          Sec. 252. Air traffic control modernization reviews.
          Sec. 253. Federal Aviation Administration personnel management
              system.
          Sec. 254. Conforming amendment.
           SUBTITLE C--SYSTEM TO FUND CERTAIN FEDERAL AVIATION ADMINISTRATION
                                        FUNCTIONS
          Sec. 271. Findings.
          Sec. 272. Purposes.
          Sec. 273. User fees for various Federal Aviation Administration
              services.
          Sec. 274. Independent assessment of FAA financial requirements;
              establishment of National Civil Aviation Review Commission.
          Sec. 275. Procedure for consideration of certain funding proposals.
          Sec. 276. Administrative provisions.
          Sec. 277. Advance appropriations for Airport and Airway Trust Fund
              activities.
          Sec. 278. Rural Air Service Survival Act.
                              TITLE III--AVIATION SECURITY
          Sec. 301. Report including proposed legislation on funding for
              airport security.
          Sec. 302. Certification of screening companies.
          Sec. 303. Weapons and explosive detection study.
          Sec. 304. Requirement for criminal history records checks.
          Sec. 305. Interim deployment of commercially available explosive
              detection equipment.
          Sec. 306. Audit of performance of background checks for certain
              personnel.
          Sec. 307. Passenger profiling.
          Sec. 308. Authority to use certain funds for airport security
              programs and activities.
          Sec. 309. Development of aviation security liaison agreement.
          Sec. 310. Regular joint threat assessments.
          Sec. 311. Baggage match report.
          Sec. 312. Enhanced security programs.
          Sec. 313. Report on air cargo.
          Sec. 314. Sense of the Senate regarding acts of international
              terrorism.
                                TITLE IV--AVIATION SAFETY
          Sec. 401. Elimination of dual mandate.
          Sec. 402. Protection of voluntarily submitted information.
          Sec. 403. Supplemental type certificates.
          Sec. 404. Certification of small airports.
          Sec. 405. Authorization for State-specific safety measures.
          Sec. 406. Aircraft engine standards.
          Sec. 407. Accident and safety data classification; report on 
              effects of publication and automated surveillance targeting
              systems.
                              TITLE V--PILOT RECORD SHARING
          Sec. 501. Short title.
          Sec. 502. Employment investigations of pilot applicants.
          Sec. 503. Studies of minimum standards for pilot qualifications and
              of pay for training.
          Sec. 504. Study of minimum flight time.
                              TITLE VI--CHILD PILOT SAFETY
          Sec. 601. Short title.
          Sec. 602. Child pilot safety.
                              TITLE VII--FAMILY ASSISTANCE
          Sec. 701. Short title.
          Sec. 702. Assistance by National Transportation Safety Board to
              families of passengers involved in aircraft accidents.
          Sec. 703. Air carrier plans to address needs of families of
              passengers involved in aircraft accidents.
          Sec. 704. Establishment of task force.
          Sec. 705. Limitation on statutory construction.
                         TITLE VIII--AIRPORT REVENUE PROTECTION
          Sec. 801. Short title.
          Sec. 802. Findings; purpose.
          Sec. 803. Definitions.
          Sec. 804. Restriction on use of airport revenues.
          Sec. 805. Regulations; audits and accountability.
          Sec. 806. Conforming amendments to the Internal Revenue Code of 1986.
                       TITLE IX--METROPOLITAN WASHINGTON AIRPORTS
          Sec. 901. Short title.
          Sec. 902. Use of leased property.
          Sec. 903. Board of Directors.
          Sec. 904. Termination of Board of Review.
          Sec. 905. Limitations.
          Sec. 906. Use of Dulles Airport Access Highway.
          Sec. 907. Effect of judicial order.
          Sec. 908. Amendment of lease.
          Sec. 909. Sense of the Senate.
            TITLE X--EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURES
          Sec. 1001. Extension of Airport and Airway Trust Fund expenditures.
                  TITLE XI--FAA RESEARCH, ENGINEERING, AND DEVELOPMENT
          Sec. 1101. Short title.
          Sec. 1102. Authorization of appropriations.
          Sec. 1103. Research priorities.
          Sec. 1104. Research advisory committee.
          Sec. 1105. National aviation research plan.
                           TITLE XII--MISCELLANEOUS PROVISIONS
          Sec. 1201. Purchase of housing units.
          Sec. 1202. Clarification of passenger facility revenues as
              constituting trust funds.
          Sec. 1203. Authority to close airport located near closed or
              realigned military base.
          Sec. 1204. Gadsden Air Depot, Alabama.
          Sec. 1205. Regulations affecting intrastate aviation in Alaska.
          Sec. 1206. Westchester County Airport, New York.
          Sec. 1207. Bedford Airport, Pennsylvania.
          Sec. 1208. Worcester Municipal Airport, Massachusetts.
          Sec. 1209. Central Florida Airport, Sanford, Florida.
          Sec. 1210. Aircraft Noise Ombudsman.
          Sec. 1211. Special rule for privately owned reliever airports.
          Sec. 1212. Sense of the Senate regarding the funding of the Federal
              Aviation Administration.
          Sec. 1213. Rural air fare study.
          Sec. 1214. Carriage of candidates in State and local elections.
          Sec. 1215. Special flight rules in the vicinity of Grand Canyon
              National Park.
          Sec. 1216. Transfer of air traffic control tower; closing of flight
              service stations.
          Sec. 1217. Location of Doppler radar stations, New York.
          Sec. 1218. Train whistle requirements.
          Sec. 1219. Increased fees.
          Sec. 1220. Structures interfering with air commerce.
          Sec. 1221. Hawaii cargo.
          Sec. 1222. Limitation on authority of States to regulate gambling
              devices on vessels.
          Sec. 1223. Clarifying amendment.
          SEC. 2. AMENDMENTS TO TITLE 49, UNITED STATES CODE.
            Except as otherwise specifically provided, whenever in this Act 
          an amendment or repeal is expressed in terms of an amendment to, or
          repeal of, a section or other provision of law, the reference shall
          be considered to be made to a section or other provision of title
          49, United States Code.
          SEC. 3. APPLICABILITY.
            (a) IN GENERAL- Except as otherwise specifically provided, this
          Act and the amendments made by this Act apply only to fiscal years
          beginning after September 30, 1996.
            (b) LIMITATION ON STATUTORY CONSTRUCTION- Nothing in this Act or
          any amendment made by this Act shall be construed as affecting 
          funds made available for a fiscal year ending before October 1, 1996.
                        TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS
                       SUBTITLE A--REAUTHORIZATION OF FAA PROGRAMS
          SEC. 101. AIRPORT IMPROVEMENT PROGRAM.
            (a) AUTHORIZATION OF APPROPRIATIONS- Section 48103 is amended--
                (1) by striking `September 30, 1981' and inserting `September
              30, 1996'; and
                (2) by striking `$17,583,500,000' and all that follows 
              through the period at the end and inserting the following:
              `$2,280,000,000 for fiscal years ending before October 1, 1997,
              and $4,627,000,000 for fiscal years ending before October 1,
              1998.'.
            (b) OBLIGATIONAL AUTHORITY- Section 47104(c) is amended by
          striking `1996' and inserting `1998'.
          SEC. 102. AIRWAY FACILITIES IMPROVEMENT PROGRAM.
            (a) AUTHORIZATION OF APPROPRIATIONS- Section 48101(a) is amended
          by striking paragraphs (1) through (4) and inserting the following:
                `(1) $2,068,000,000 for fiscal year 1997.
                `(2) $2,129,000,000 for fiscal year 1998.'.
            (b) CLERICAL AMENDMENTS- Chapter 481 is amended--
                (1) by striking the heading for section 48101 and inserting
              the following:
          `Sec. 48101. Air navigation facilities and equipment'; and
                (2) in the table of sections by striking the item relating to
              section 48101 and inserting the following:
          `48101. Air navigation facilities and equipment.'.
          SEC. 103. FAA OPERATIONS.
            (a) AUTHORIZATION OF APPROPRIATIONS FROM GENERAL FUND- Section
          106(k) is amended by striking `$4,088,000,000' and all that follows
          through the period at the end and inserting the following:
          `$5,158,000,000 for fiscal year 1997 and $5,344,000,000 for fiscal
          year 1998.'.
            (b) AUTHORIZATION OF APPROPRIATIONS FROM TRUST FUND- Section
          48104(c) is amended--
                (1) in the subsection heading by striking `1996' and 
              inserting `1998';
                (2) in the matter preceding paragraph (1) by striking `1994,
              1995, and 1996' and inserting `1994 through 1998'; and
                (3) in paragraph (2)(A) by striking `70 percent' and 
              inserting `72.5 percent'.
            (c) LIMITATION ON OBLIGATING OR EXPENDING AMOUNTS- Section
          48108(c) is amended by striking `1996' and inserting `1998'.
            (d) CLERICAL AMENDMENTS- Chapter 481 is amended--
                (1) by striking the heading for section 48104 and inserting
              the following:
          `Sec. 48104. Operations and maintenance'; and
                (2) in the table of sections by striking the item relating to
              section 48104 and inserting the following:
          `48104. Operations and maintenance.'.
                        SUBTITLE B--AIRPORT DEVELOPMENT FINANCING
          SEC. 121. APPORTIONMENTS.
            (a) AMOUNTS APPORTIONED TO SPONSORS- 
                (1) PRIMARY AIRPORTS- Section 47114(c)(1)(A) is amended--
                    (A) by striking `and' at the end of clause (iii);
                    (B) in clause (iv) by striking `additional passenger
                  boarding' and inserting `of the next 500,000 passenger
                  boardings';
                    (C) by striking the period at the end of clause (iv) and
                  inserting `; and'; and
                    (D) by adding at the end the following:
                `(v) $.50 for each additional passenger boarding at the
              airport during the prior calendar year.'.
                (2) CARGO ONLY AIRPORTS- Section 47114(c)(2) of such title is
              amended to read as follows:
                `(2) CARGO ONLY AIRPORTS- 
                    `(A) APPORTIONMENT- Subject to subparagraph (D), the
                  Secretary shall apportion an amount equal to 2.5 percent of
                  the amount subject to apportionment each fiscal year to the
                  sponsors of airports served by aircraft providing air
                  transportation of only cargo with a total annual landed
                  weight of more than 100,000,000 pounds.
                    `(B) SUBALLOCATION FORMULA- Any funds apportioned under
                  subparagraph (A) to sponsors of airports described in
                  subparagraph (A) shall be allocated among those airports in
                  the proportion that the total annual landed weight of
                  aircraft described in subparagraph (A) landing at each of
                  those airports bears to the total annual landed weight of
                  those aircraft landing at all those airports.
                    `(C) LIMITATION- Not more than 8 percent of the amount
                  apportioned under subparagraph (A) may be apportioned for
                  any one airport.
                    `(D) DISTRIBUTION TO OTHER AIRPORTS- Before apportioning
                  amounts to the sponsors of airports under subparagraph (A)
                  for a fiscal year, the Secretary may set-aside a portion of
                  such amounts for distribution to the sponsors of other
                  airports, selected by the Secretary, that the Secretary
                  finds will be served primarily by aircraft providing air
                  transportation of only cargo.
                    `(E) DETERMINATION OF LANDED WEIGHT- Landed weight under
                  this paragraph is the landed weight of aircraft landing at
                  each airport described in subparagraph (A) during the prior
                  calendar year.'.
                (3) REPEAL OF LIMITATION- Section 47114(c)(3) is repealed.
            (b) AMOUNTS APPORTIONED TO STATES- Section 47114(d)(2) of such
          title is amended--
                (1) by striking `12' and inserting `18.5';
                (2) in subparagraph (A) by striking `one' and inserting `0.66';
                (3) in each of subparagraphs (B) and (C) by striking `49.5'
              and inserting `49.67'; and
                (4) in each of subparagraphs (B) and (C) by striking `except'
              the second place it appears and all that follows through
              `title,' and inserting `excluding primary airports but 
              including reliever and nonprimary commercial service airports,'.
          SEC. 122. DISCRETIONARY FUND.
            Section 47115 is amended by striking the second subsection (f),
          relating to minimum amounts to be credited, and inserting the
          following:
            `(g) MINIMUM AMOUNT TO BE CREDITED- 
                `(1) GENERAL RULE- In a fiscal year, there shall be credited
              to the fund, out of amounts made available under section 48103
              of this title, an amount that is at least equal to the sum of--
                    `(A) $148,000,000; plus
                    `(B) the total amount required from the fund to carry out
                  in the fiscal year letters of intent issued before January
                  1, 1996, under section 47110(e) of this title or the 
                  Airport and Airway Improvement Act of 1982.
              The amount credited is exclusive of amounts that have been
              apportioned in a prior fiscal year under section 47114 of this
              title and that remain available for obligation.
                `(2) REDUCTION OF APPORTIONMENTS- In a fiscal year in which
              the amount credited under subsection (a) is less than the
              minimum amount to be credited under paragraph (1), the total
              amount calculated under paragraph (3) shall be reduced by an
              amount that, when credited to the fund, together with the 
              amount credited under subsection (a), equals such minimum amount.
                `(3) AMOUNT OF REDUCTION- For a fiscal year, the total amount
              available to make a reduction to carry out paragraph (2) is the
              total of the amounts determined under sections 47114(c)(1)(A),
              47114(c)(2), 47114(d), and 47117(e) of this title. Each amount
              shall be reduced by an equal percentage to achieve the reduction.
                `(4) SPECIAL RULE- For a fiscal year in which the amount
              credited to the fund under this subsection exceeds 
              $300,000,000, the Secretary shall allocate the amount of such
              excess as follows:
                    `(A)  1/3  shall be made available to airports for which
                  apportionments are made under section 47114(d) of this title.
                    `(B)  1/3  shall be made available for airport noise
                  compatibility planning under section 47505(a)(2) of this
                  title and for carrying out noise compatibility programs
                  under section 47504(c)(1) of this title.
                    `(C)  1/3  shall be made available to current or former
                  military airports for which grants may be made under 
                  section 47117(e)(1)(B) of this title.'.
          SEC. 123. USE OF APPORTIONED AMOUNTS.
            (a) PERIOD OF AVAILABILITY- Section 47117(b) is amended by
          inserting before the period at the end of the first sentence the
          following: `or the 3 fiscal years immediately following that year 
          in the case of a primary airport that had less than .05 percent of
          the total boardings in the United States in the preceding calendar
          year'.
            (b) SPECIAL APPORTIONMENT CATEGORIES- Section 47117(e)(1) is
          amended--
                (1) by striking `made available under section 48103' and
              inserting `available to the discretionary fund under section
              47115';
                (2) by striking subparagraphs (A), (C), and (D);
                (3) by redesignating subparagraphs (B) and (E) as
              subparagraphs (A) and (B), respectively;
                (4) in subparagraph (A), as so redesignated, by striking `at
              least 12.5' and inserting `At least 31';
                (5) by adding at the end of subparagraph (A), as so
              redesignated, the following: `The Secretary may count the 
              amount of grants made for such planning and programs with funds
              apportioned under section 47114 in that fiscal year in
              determining whether or not such 31 percent requirement is being
              met in that fiscal year.';
                (6) in subparagraph (B), as so redesignated, by striking `at
              least 2.25' and all that follows through `1996,' and inserting
              `At least 4 percent for each fiscal year thereafter'; and
                (7) by inserting before the period at the end of subparagraph
              (B), as so redesignated, the following: `and to sponsors of
              noncommercial service airports for grants for operational and
              maintenance expenses at any such airport if the amount of such
              grants to the sponsor of the airport does not exceed $30,000 in
              that fiscal year, if the Secretary determines that the airport
              is adversely affected by the closure or realignment of a
              military base, and if the sponsor of the airport certifies that
              the airport would otherwise close if the airport does not
              receive the grant'.
            (c) CONFORMING AMENDMENTS- Section 47117(e) is amended--
                (1) by striking paragraph (2); and
                (2) by redesignating paragraph (3) as paragraph (2).
          SEC. 124. DESIGNATING CURRENT AND FORMER MILITARY AIRPORTS.
            (a) GENERAL REQUIREMENTS- Section 47118(a) is amended to read as
          follows:
            `(a) GENERAL REQUIREMENTS- The Secretary of Transportation shall
          designate current or former military airports for which grants may
          be made under section 47117(e)(1)(B) of this title. The maximum
          number of airports bearing such designation at any time is 12. The
          Secretary may only so designate an airport (other than an airport 
          so designated before August 24, 1994) if--
                `(1) the airport is a former military installation closed or
              realigned under--
                    `(A) section 2687 of title 10;
                    `(B) section 201 of the Defense Authorization Amendments
                  and Base Closure and Realignment Act (10 U.S.C. 2687 note);
                  or
                    `(C) section 2905 of the Defense Base Closure and
                  Realignment Act of 1990 (10 U.S.C. 2687 note); or
                `(2) the Secretary finds that such grants would--
                    `(A) reduce delays at an airport with more than 20,000
                  hours of annual delays in commercial passenger aircraft
                  takeoffs and landings; or
                    `(B) enhance airport and air traffic control system
                  capacity in a metropolitan area or reduce current and
                  projected flight delays.'.
            (b) ADDITIONAL DESIGNATION PERIODS- Section 47118(d) is amended 
          by striking `designation.' and inserting `designation, and for
          subsequent 5-fiscal-year periods if the Secretary determines that
          the airport satisfies the designation criteria under subsection (a)
          at the beginning of each such subsequent 5-fiscal-year period.'.
            (c) PARKING LOTS, FUEL FARMS, UTILITIES, AND HANGARS- Section
          47118(f) is amended--
                (1) in the heading by striking `AND UTILITIES' and inserting
              `UTILITIES, AND HANGARS';
                (2) by striking `for the fiscal years ending September 30,
              1993-1996,' and inserting `for fiscal years beginning after
              September 30, 1992,'; and
                (3) by striking `and utilities' and inserting `utilities, and
              hangars'.
            (d) 2-YEAR EXTENSION- Section 47117(e)(1)(B), as redesignated by
          section 123(b) of this Act, is amended by striking `and 1996,' and
          inserting `1996, 1997, and 1998'.
          SEC. 125. PERIOD OF APPLICABILITY OF AMENDMENTS.
            The amendments made by this subtitle shall cease to be effective
          on September 30, 1998. On and after such date, sections 47114,
          47115, 47117, and 47118 of title 49, United States Code, shall read
          as if such amendments had not been enacted.
                  SUBTITLE C--AIRPORT IMPROVEMENT PROGRAM MODIFICATIONS
          SEC. 141. INTERMODAL PLANNING.
            Section 47101(g) is amended to read as follows:
            `(g) INTERMODAL PLANNING- To carry out the policy of subsection
          (a)(5) of this section, the Secretary of Transportation shall take
          each of the following actions:
                `(1) COORDINATION IN DEVELOPMENT OF AIRPORT PLANS AND
              PROGRAMS- Cooperate with State and local officials in 
              developing airport plans and programs that are based on overall
              transportation needs. The airport plans and programs shall be
              developed in coordination with other transportation planning 
              and considering comprehensive long-range land-use plans and
              overall social, economic, environmental, system performance, 
              and energy conservation objectives. The process of developing
              airport plans and programs shall be continuing, cooperative, 
              and comprehensive to the degree appropriate to the complexity 
              of the transportation problems.
                `(2) GOALS FOR AIRPORT MASTER AND SYSTEM PLANS- Encourage
              airport sponsors and State and local officials to develop
              airport master plans and airport system plans that--
                    `(A) foster effective coordination between aviation
                  planning and metropolitan planning;
                    `(B) include an evaluation of aviation needs within the
                  context of multimodal planning; and
                    `(C) are integrated with metropolitan plans to ensure 
                  that airport development proposals include adequate
                  consideration of land use and ground transportation access.
                `(3) REPRESENTATION OF AIRPORT OPERATORS ON MPO'S- Encourage
              metropolitan planning organizations, particularly in areas with
              populations greater than 200,000, to establish membership
              positions for airport operators.'.
          SEC. 142. PAVEMENT MAINTENANCE PROGRAM.
            (a) PAVEMENT MAINTENANCE- Subchapter I of chapter 471 is amended
          by adding at the end the following:
          `Sec. 47132. Pavement maintenance
            `(a) IN GENERAL- The Administrator of the Federal Aviation
          Administration shall issue guidelines to carry out a pavement
          maintenance pilot project to preserve and extend the useful life of
          runways, taxiways, and aprons at airports for which apportionments
          are made under section 47114(d). The guidelines shall provide that
          the Administrator may designate not more than 10 projects. The
          guidelines shall provide criteria for the Administrator to use in
          choosing the projects. At least 2 such projects must be in States
          without a primary airport that had 0.25 percent or more of the 
          total boardings in the United States in the preceding calendar 
          year. In designating a project, the Administrator shall take into
          consideration geographical, climatological, and soil diversity.
            `(b) EFFECTIVE DATE- This section shall be effective beginning on
          the date of the enactment of this section and ending on September
          30, 1999.'.
            (b) Compliance With Federal Mandates- 
                (1) USE OF AIP GRANTS- Section 47102(3) is amended--
                    (A) in subparagraph (E) by inserting `or under section
                  40117' before the period at the end; and
                    (B) in subparagraph (F) by striking `paid for by a grant
                  under this subchapter and'.
                (2) USE OF PASSENGER FACILITY CHARGES- Section 40117(a)(3) is
              amended--
                    (A) by inserting `and' at the end of subparagraph (D);
                    (B) by striking `; and' at the end of subparagraph (E) 
                  and inserting a period; and
                    (C) by striking subparagraph (F).
            (c) CONFORMING AMENDMENT- The table of sections for such
          subchapter is amended by inserting after the item relating to
          section 47131 the following:
          `47132. Pavement maintenance.'.
          SEC. 143. ACCESS TO AIRPORTS BY INTERCITY BUSES.
            Section 47107(a) is amended--
                (1) by striking `and' at the end of paragraph (18);
                (2) by striking the period at the end of paragraph (19) and
              inserting `; and'; and
                (3) by adding at the end the following:
                `(20) the airport owner or operator will permit, to the
              maximum extent practicable, intercity buses or other modes of
              transportation to have access to the airport, but the sponsor
              does not have any obligation under this paragraph, or because 
              of it, to fund special facilities for intercity bus service or
              for other modes of transportation.'.
          SEC. 144. COST REIMBURSEMENT FOR PROJECTS COMMENCED PRIOR TO GRANT
                            AWARD.
            (a) COST REIMBURSEMENT- Section 47110(b)(2)(C) is amended to read
          as follows:
                `(C) if the Government's share is paid only with amounts
              apportioned under paragraphs (1) and (2) of section 47114(c) of
              this title and if the cost is incurred--
                    `(i) after September 30, 1996;
                    `(ii) before a grant agreement is executed for the
                  project; and
                    `(iii) in accordance with an airport layout plan approved
                  by the Secretary and with all statutory and administrative
                  requirements that would have been applicable to the project
                  if the project had been carried out after the grant
                  agreement had been executed;'.
            (b) USE OF DISCRETIONARY FUNDS- Section 47110 is amended by 
          adding at the end the following:
            `(g) USE OF DISCRETIONARY FUNDS- A project for which cost
          reimbursement is provided under subsection (b)(2)(C) shall not
          receive priority consideration with respect to the use of
          discretionary funds made available under section 47115 of this 
          title even if the amounts made available under paragraphs (1) and
          (2) of section 47114(c) are not sufficient to cover the 
          Government's share of the cost of project.'.
          SEC. 145. SELECTION OF PROJECTS FOR GRANTS FROM DISCRETIONARY FUND.
            (a) SELECTION OF PROJECTS FOR GRANTS- Section 47115(d) is amended--
                (1) by striking `; and' at the end of paragraph (2) and
              inserting the following: `, including, in the case of a project
              at a reliever airport, the number of operations projected to be
              diverted from a primary airport to the reliever airport as a
              result of the project, as well as the cost savings projected to
              be realized by users of the local airport system;';
                (2) by striking the period at the end of paragraph (3) and
              inserting a semicolon; and
                (3) by adding at the end the following:
                `(4) the airport improvement priorities of the States, and
              regional offices of the Administration, to the extent such
              priorities are not in conflict with paragraphs (1) and (2);
                `(5) the projected growth in the number of passengers that
              will be using the airport at which the project will be carried
              out; and
                `(6) any increase in the number of passenger boardings in the
              preceding 12-month period at the airport at which the project
              will be carried out, with priority consideration to be given to
              projects at airports at which the number of passenger boardings
              increased by at least 20 percent as compared to the number of
              passenger boardings in the 12-month period preceding such
              period.'.
            (b) PRIORITY FOR LETTERS OF INTENT- Section 47115, as amended by
          section 122 of this Act, is further amended by adding at the end 
          the following:
            `(h) PRIORITY FOR LETTERS OF INTENT- In making grants in a fiscal
          year with funds made available under this section, the Secretary
          shall fulfill intentions to obligate under section 47110(e).'.
          SEC. 146. SMALL AIRPORT FUND.
            Section 47116 is amended by adding at the end the following:
            `(d) PRIORITY CONSIDERATION FOR CERTAIN PROJECTS- In making 
          grants to sponsors described in subsection (b)(2), the Secretary
          shall give priority consideration to multi-year projects for
          construction of new runways that the Secretary finds are cost
          beneficial and would increase capacity in a region of the United
          States.'.
          SEC. 147. STATE BLOCK GRANT PROGRAM.
            (a) PARTICIPATING STATES- Section 47128 is amended--
                (1) in subsection (a) by striking `7 qualified States' and
              inserting `8 qualified States for fiscal year 1997 and 9
              qualified States for each fiscal year thereafter';
                (2) in subsection (b)(1)--
                    (A) by striking `(1)'; and
                    (B) by redesignating subparagraphs (A) through (E) as
                  paragraphs (1) through (5), respectively; and
                (3) by striking subsection (b)(2).
            (b) USE OF STATE PRIORITY SYSTEM- Section 47128(c) is amended--
                (1) by striking `(b)(1)(B) or (C)' and inserting `(b)(2) or
              (b)(3)'; and
                (2) by adding at the end the following: `In carrying out this
              subsection, the Secretary shall permit a State to use the
              priority system of the State if such system is not inconsistent
              with the national priority system.'.
            (c) REPEAL OF EXPIRATION DATE- 
                (1) IN GENERAL- Section 47128 is amended--
                    (A) by striking ` [Bold->] pilot [<-Bold] ' in the 
                  section heading;
                    (B) by striking `pilot' in subsection (a); and
                    (C) by striking subsection (d).
                (2) CONFORMING AMENDMENT- The table of sections for chapter
              471 is amended by striking the item relating to section 47128
              and inserting the following:
          `47128. State block grant program.'.
          SEC. 148. INNOVATIVE FINANCING TECHNIQUES.
            (a) IN GENERAL- The Secretary of Transportation is authorized to
          carry out a demonstration program under which the Secretary may
          approve applications under subchapter I of chapter 471 of title 49,
          United States Code, for not more than 10 projects for which grants
          received under such subchapter may be used to implement innovative
          financing techniques.
            (b) PURPOSE- The purpose of the demonstration program shall be to
          provide information on the use of innovative financing techniques
          for airport development projects to Congress and the National Civil
          Aviation Review Commission.
            (c) LIMITATION- In no case shall the implementation of an
          innovative financing technique under the demonstration program
          result in a direct or indirect guarantee of any airport debt
          instrument by the Federal Government.
            (d) INNOVATIVE FINANCING TECHNIQUE DEFINED- In this section, the
          term `innovative financing technique' shall be limited to the
          following:
                (1) Payment of interest.
                (2) Commercial bond insurance and other credit enhancement
              associated with airport bonds for eligible airport development.
                (3) Flexible non-Federal matching requirements.
            (e) EXPIRATION OF AUTHORITY- The authority of the Secretary to
          carry out the demonstration program shall expire on September 30,
          1998.
          SEC. 149. PILOT PROGRAM ON PRIVATE OWNERSHIP OF AIRPORTS.
            (a) ESTABLISHMENT OF PROGRAM- 
                (1) IN GENERAL- Subchapter I of chapter 471, as amended by
              section 804 of this Act, is further amended by adding after
              section 47133 the following:
          `Sec. 47134. Pilot program on private ownership of airports
            `(a) SUBMISSION OF APPLICATIONS- If a sponsor intends to sell or
          lease a general aviation airport or lease any other type of airport
          for a long term to a person (other than a public agency), the
          sponsor and purchaser or lessee may apply to the Secretary of
          Transportation for exemptions under this section.
            `(b) APPROVAL OF APPLICATIONS- The Secretary may approve, with
          respect to not more than 5 airports, applications submitted under
          subsection (a) granting exemptions from the following provisions:
                `(1) USE OF REVENUES- 
                    `(A) IN GENERAL- The Secretary may grant an exemption to 
                  a sponsor from the provisions of sections 47107(b) and 
                  47133 of this title (and any other law, regulation, or 
                  grant assurance) to the extent necessary to permit the
                  sponsor to recover from the sale or lease of the airport
                  such amount as may be approved--
                        `(i) by at least 65 percent of the air carriers
                      serving the airport; and
                        `(ii) by air carriers whose aircraft landing at the
                      airport during the preceding calendar year had a total
                      landed weight during the preceding calendar year of at
                      least 65 percent of the total landed weight of all
                      aircraft landing at the airport during such year.
                    `(B) LANDED WEIGHT DEFINED- In this paragraph, the term
                  `landed weight' means the weight of aircraft transporting
                  passengers or cargo, or both, in intrastate, interstate, 
                  and foreign air transportation, as the Secretary determines
                  under regulations the Secretary prescribes.
                `(2) REPAYMENT REQUIREMENTS- The Secretary may grant an
              exemption to a sponsor from the provisions of sections 47107 
              and 47152 of this title (and any other law, regulation, or 
              grant assurance) to the extent necessary to waive any 
              obligation of the sponsor to repay to the Federal Government 
              any grants, or to return to the Federal Government any 
              property, received by the airport under this title, the Airport
              and Airway Improvement Act of 1982, or any other law.
                `(3) COMPENSATION FROM AIRPORT OPERATIONS- The Secretary may
              grant an exemption to a purchaser or lessee from the provisions
              of sections 47107(b) and 47133 of this title (and any other 
              law, regulation, or grant assurance) to the extent necessary to
              permit the purchaser or lessee to earn compensation from the
              operations of the airport.
            `(c) TERMS AND CONDITIONS- The Secretary may approve an
          application under subsection (b) only if the Secretary finds that
          the sale or lease agreement includes provisions satisfactory to the
          Secretary to ensure the following:
                `(1) The airport will continue to be available for public use
              on reasonable terms and conditions and without unjust
              discrimination.
                `(2) The operation of the airport will not be interrupted in
              the event that the purchaser or lessee becomes insolvent or
              seeks or becomes subject to any State or Federal bankruptcy,
              reorganization, insolvency, liquidation, or dissolution
              proceeding or any petition or similar law seeking the
              dissolution or reorganization of the purchaser or lessee or the
              appointment of a receiver, trustee, custodian, or liquidator 
              for the purchaser or lessee or a substantial part of the
              purchaser or lessee's property, assets, or business.
                `(3) The purchaser or lessee will maintain, improve, and
              modernize the facilities of the airport through capital
              investments and will submit to the Secretary a plan for 
              carrying out such maintenance, improvements, and modernization.
                `(4) Every fee of the airport imposed on an air carrier on 
              the day before the date of the lease of the airport will not
              increase faster than the rate of inflation unless a higher
              amount is approved--
                    `(A) by at least 65 percent of the air carriers serving
                  the airport; and
                    `(B) by air carriers whose aircraft landing at the 
                  airport during the preceding calendar year had a total
                  landed weight during the preceding calendar year of at 
                  least 65 percent of the total landed weight of all aircraft
                  landing at the airport during such year.
                `(5) The percentage increase in fees imposed on general
              aviation aircraft at the airport will not exceed the percentage
              increase in fees imposed on air carriers at the airport.
                `(6) Safety and security at the airport will be maintained at
              the highest possible levels.
                `(7) The adverse effects of noise from operations at the
              airport will be mitigated to the same extent as at a public
              airport.
                `(8) Any adverse effects on the environment from airport
              operations will be mitigated to the same extent as at a public
              airport.
                `(9) Any collective bargaining agreement that covers 
              employees of the airport and is in effect on the date of the
              sale or lease of the airport will not be abrogated by the sale
              or lease.
            `(d) PARTICIPATION OF CERTAIN AIRPORTS- 
                `(1) GENERAL AVIATION AIRPORTS- If the Secretary approves
              under subsection (b) applications with respect to 5 airports,
              one of the airports must be a general aviation airport.
                `(2) LARGE HUB AIRPORTS- The Secretary may not approve under
              subsection (b) more than 1 application submitted by an airport
              that had 1 percent or more of the total passenger boardings (as
              defined in section 47102) in the United States in the preceding
              calendar year.
            `(e) REQUIRED FINDING THAT APPROVAL WILL NOT RESULT IN UNFAIR
          METHODS OF COMPETITION- The Secretary may approve an application
          under subsection (b) only if the Secretary finds that the approval
          will not result in unfair and deceptive practices or unfair methods
          of competition.
            `(f) INTERESTS OF GENERAL AVIATION USERS- In approving an
          application of an airport under this section, the Secretary shall
          ensure that the interests of general aviation users of the airport
          are not adversely affected.
            `(g) PASSENGER FACILITY FEES; APPORTIONMENTS; SERVICE CHARGES-
          Notwithstanding that the sponsor of an airport receiving an
          exemption under subsection (b) is not a public agency, the sponsor
          shall not be prohibited from--
                `(1) imposing a passenger facility fee under section 40117 of
              this title;
                `(2) receiving apportionments under section 47114 of this
              title; or
                `(3) collecting reasonable rental charges, landing fees, and
              other service charges from aircraft operators under section
              40116(e)(2) of this title.
            `(h) EFFECTIVENESS OF EXEMPTIONS- An exemption granted under
          subsection (b) shall continue in effect only so long as the
          facilities sold or leased continue to be used for airport purposes.
            `(i) REVOCATION OF EXEMPTIONS- The Secretary may revoke an
          exemption issued to a purchaser or lessee of an airport under
          subsection (b)(3) if, after providing the purchaser or lessee with
          notice and an opportunity to be heard, the Secretary determines 
          that the purchaser or lessee has knowingly violated any of the 
          terms specified in subsection (c) for the sale or lease of the
          airport.
            `(j) NONAPPLICATION OF PROVISIONS TO AIRPORTS OWNED BY PUBLIC
          AGENCIES- The provisions of this section requiring the approval of
          air carriers in determinations concerning the use of revenues, and
          imposition of fees, at an airport shall not be extended so as to
          apply to any airport owned by a public agency that is not
          participating in the program established by this section.
            `(k) AUDITS- The Secretary may conduct periodic audits of the
          financial records and operations of an airport receiving an
          exemption under this section.
            `(l) REPORT- Not later than 2 years after the date of the initial
          approval of an application under this section, the Secretary shall
          transmit to the Committee on Transportation and Infrastructure of
          the House of Representatives and the Committee on Commerce, 
          Science, and Transportation of the Senate a report on 
          implementation of the program under this section.
            `(m) GENERAL AVIATION AIRPORT DEFINED- In this section, the term
          `general aviation airport' means an airport that is not a 
          commercial service airport.'.
                (2) CONFORMING AMENDMENT- The table of sections for such
              chapter is amended by inserting after the item relating to
              section 47133, as added by section 804 of this Act, the
              following:
          `47134. Pilot program on private ownership of airports.'.
            (b) TAXATION- Section 40116(b) is amended--
                (1) by striking `a State or' and inserting `a State, a'; and
                (2) by inserting after `of a State' the following: `, and any
              person that has purchased or leased an airport under section
              47134 of this title'.
            (c) FEDERAL SHARE- Section 47109(a) is amended--
                (1) by striking `and' at the end of paragraph (1);
                (2) by striking the period at the end of paragraph (2) and
              inserting `; and'; and
                (3) by adding at the end the following:
                `(3) 40 percent for a project funded by the Administrator 
              from the discretionary fund under section 47115 at an airport
              receiving an exemption under section 47134.'.
            (d) RESOLUTION OF AIRPORT-AIR CARRIER DISPUTES CONCERNING AIRPORT
          FEES- Section 47129(a) is amended by adding at the end the following:
                `(4) FEES IMPOSED BY PRIVATELY-OWNED AIRPORTS- In evaluating
              the reasonableness of a fee imposed by an airport receiving an
              exemption under section 47134 of this title, the Secretary 
              shall consider whether the airport has complied with section
              47134(c)(4).'.
                                  TITLE II--FAA REFORM
          SEC. 201. SHORT TITLE.
            This title may be cited as the `Air Traffic Management System
          Performance Improvement Act of 1996'.
          SEC. 202. DEFINITIONS.
            In this title, the following definitions apply:
                (1) ADMINISTRATION- The term `Administration' means the
              Federal Aviation Administration.
                (2) ADMINISTRATOR- The term `Administrator' means the
              Administrator of the Federal Aviation Administration.
                (3) SECRETARY- The term `Secretary' means the Secretary of
              Transportation.
          SEC. 203. EFFECTIVE DATE.
            The provisions of this title and the amendments made by this 
          title shall take effect on the date that is 30 days after the date
          of the enactment of this Act.
                             SUBTITLE A--GENERAL PROVISIONS
          SEC. 221. FINDINGS.
            Congress finds the following:
                (1) In many respects the Administration is a unique agency,
              being one of the few non-defense government agencies that
              operates 24 hours a day, 365 days of the year, while continuing
              to rely on outdated technology to carry out its 
              responsibilities for a state-of-the-art industry.
                (2) Until January 1, 1996, users of the air transportation
              system paid 70 percent of the budget of the  Administration,
              with the remaining 30 percent coming from the General Fund. The
              General Fund contribution over the years is one measure of the
              benefit received by the general public, military, and other
              users of Administration's services.
                (3) The Administration must become a more efficient,
              effective, and different organization to meet future challenges.
                (4) The need to balance the Federal budget means that it may
              become more and more difficult to obtain sufficient General 
              Fund contributions to meet the Administration's future budget
              needs.
                (5) Congress must keep its commitment to the users of the
              national air transportation system by seeking to spend all
              moneys collected from them each year and deposited into the
              Airport and Airway Trust Fund. Existing surpluses representing
              past receipts must also be spent for the purposes for which 
              such funds were collected.
                (6) The aviation community and the employees of the
              Administration must come together to improve the system. The
              Administration must continue to recognize who its customers are
              and what their needs are, and to design and redesign the system
              to make safety improvements and increase productivity.
                (7) The Administration projects that commercial operations
              will increase by 18 percent and passenger traffic by 35 percent
              by the year 2002. Without effective airport expansion and 
              system modernization, these needs cannot be met.
                (8) Absent significant and meaningful reform, future
              challenges and needs cannot be met.
                (9) The Administration must have a new way of doing business.
                (10) There is widespread agreement within government and the
              aviation industry that reform of the Administration is 
              essential to safely and efficiently accommodate the projected
              growth of aviation within the next decade.
                (11) To the extent that Congress determines that certain
              segments of the aviation community are not required to pay all
              of the costs of the government services which they require and
              benefits which they receive, Congress should appropriate the
              difference between such costs and any receipts received from
              such segment.
                (12) Prior to the imposition of any new charges or user fees
              on segments of the industry, an independent review must be
              performed to assess the funding needs and assumptions for
              operations, capital spending, and airport infrastructure.
                (13) An independent, thorough, and complete study and
              assessment must be performed of the costs to the Administration
              and the costs driven by each segment of the aviation system for
              safety and operational services, including the use of the air
              traffic control system and the Nation's airports.
                (14) Because the Administration is a unique Federal entity in
              that it is a participant in the daily operations of an 
              industry, and because the national air transportation system
              faces significant problems without significant changes, the
              Administration has been authorized to change the Federal
              procurement and personnel systems to ensure that the
              Administration has the ability to keep pace with new technology
              and is able to match resources with the real personnel needs of
              the Administration.
                (15) The existing budget system does not allow for long-term
              planning or timely acquisition of technology by the
              Administration.
                (16) Without reforms in the areas of procurement, personnel,
              funding, and governance, the Administration will continue to
              experience delays and cost overruns in its major modernization
              programs and needed improvements in the performance of the air
              traffic management system will not occur.
                (17) All reforms should be designed to help the 
              Administration become more responsive to the needs of its
              customers and maintain the highest standards of safety.
          SEC. 222. PURPOSES.
            The purposes of this title are--
                (1) to ensure that final action shall be taken on all notices
              of proposed rulemaking of the Administration within 18 months
              after the date of their publication;
                (2) to permit the Administration, with Congressional review,
              to establish a program to improve air traffic management system
              performance and to establish appropriate levels of cost
              accountability for air traffic management services provided by
              the Administration;
                (3) to establish a more autonomous and accountable
              Administration within the Department of Transportation; and
                (4) to make the Administration a more efficient and effective
              organization, able to meet the needs of a dynamic, growing
              industry, and to ensure the safety of the traveling public.
          SEC. 223. REGULATION OF CIVILIAN AIR TRANSPORTATION AND RELATED
                            SERVICES BY THE FEDERAL AVIATION ADMINISTRATION
                            AND DEPARTMENT OF TRANSPORTATION.
            (a) IN GENERAL- Section 106  is amended--
                (1) by striking `The Administrator' in subsection (b) and
              inserting `Except as provided in subsection (f) or in other
              provisions of law, the Administrator'; and
                (2) in subsection (f)--
                    (A) by striking `(f) The Secretary' and inserting the
                  following:
            `(f) AUTHORITY OF THE SECRETARY AND THE ADMINISTRATOR- 
                `(1) AUTHORITY OF THE SECRETARY- Except as provided in
              paragraph (2), the Secretary';
                    (B) in subsection (f)(1), as so designated--
                        (i) by moving the remainder of the text 2 ems to the
                      right;
                        (ii) by striking `The Secretary may not' and 
                      inserting `Neither the Secretary nor the Administrator
                      may'; and
                        (iii) by striking `nor' and inserting `or'; and
                    (C) by adding at the end the following:
                `(2) AUTHORITY OF THE ADMINISTRATOR- The Administrator--
                    `(A) is the final authority for carrying out all
                  functions, powers, and duties of the Administration 
                  relating to--
                        `(i) the appointment and employment of all officers
                      and employees of the Administration (other than
                      Presidential and political appointees);
                        `(ii) the acquisition and maintenance of property and
                      equipment of the Administration;
                        `(iii) except as otherwise provided in paragraph (3),
                      the promulgation of regulations, rules, orders,
                      circulars, bulletins, and other official publications 
                      of the Administration; and
                        `(iv) any obligation imposed on the Administrator, or
                      power conferred on the Administrator, by the Air 
                      Traffic Management System Performance Improvement Act 
                      of 1996 (or any amendment made by that Act);
                    `(B) shall offer advice and counsel to the President with
                  respect to the appointment and qualifications of any 
                  officer or employee of the Administration to be appointed 
                  by the President or as a political appointee;
                    `(C) may delegate, and authorize successive redelegations
                  of, to an officer or employee of the Administration any
                  function, power, or duty conferred upon the Administrator,
                  unless such delegation is prohibited by law; and
                    `(D) except as otherwise provided for in this title, and
                  notwithstanding any other provision of law, shall not be
                  required to coordinate, submit for approval or concurrence,
                  or seek the advice or views of the Secretary or any other
                  officer or employee of the Department of Transportation on
                  any matter with respect to which the Administrator is the
                  final authority.
                `(3) DEFINITION OF POLITICAL APPOINTEE- For purposes of this
              subsection, the term `political appointee' means any individual
              who--
                    `(A) is employed in a position listed in sections 5312
                  through 5316 of title 5 (relating to the Executive Schedule);
                    `(B) is a limited term appointee, limited emergency
                  appointee, or noncareer appointee in the Senior Executive
                  Service, as defined under paragraphs (5), (6), and (7),
                  respectively, of section 3132(a) of title 5; or
                    `(C) is employed in a position in the executive branch of
                  the Government of a confidential or policy-determining
                  character under schedule C of subpart C of part 213 of 
                  title 5 of the Code of Federal Regulations.'.
            (b) PRESERVATION OF EXISTING AUTHORITY- Nothing in this title or
          the amendments made by this title limits any authority granted to
          the Administrator by statute or by delegation that was in effect on
          the day before the date of the enactment of this Act.
          SEC. 224. REGULATIONS.
            Section 106(f), as amended by section 223 of this Act, is further
          amended--
                (1) by redesignating paragraph (3) as paragraph (4); and
                (2) by inserting after paragraph (2) the following:
                `(3) REGULATIONS- 
                    `(A) IN GENERAL- In the performance of the functions of
                  the Administrator and the Administration, the Administrator
                  is authorized to issue, rescind, and revise such 
                  regulations as are necessary to carry out those functions.
                  The issuance of such regulations shall be governed by the
                  provisions of chapter 5 of title 5. The Administrator shall
                  act upon all petitions for rulemaking no later than 6 
                  months after the date such petitions are filed by 
                  dismissing such petitions, by informing the petitioner of 
                  an intention to dismiss, or by issuing a notice of proposed
                  rulemaking or advanced notice of proposed rulemaking. The
                  Administrator shall issue a final regulation, or take other
                  final action, not later than 16 months after the last day 
                  of the public comment period for the regulations or, in the
                  case of an advanced notice of proposed rulemaking, if
                  issued, not later than 24 months after the date of
                  publication in the Federal Register of notice of the
                  proposed rulemaking.
                    `(B) APPROVAL OF SECRETARY OF TRANSPORTATION- (i) The
                  Administrator may not issue a proposed regulation or final
                  regulation that is likely to result in the expenditure by
                  State, local, and tribal governments in the aggregate, or 
                  by the private sector, of $100,000,000 or more (adjusted
                  annually for inflation beginning with the year following 
                  the date of the enactment of the Air Traffic Management
                  System Performance Improvement Act of 1996) in any year, or
                  any regulation which is significant, unless the Secretary 
                  of Transportation approves the issuance of the regulation 
                  in advance. For purposes of this paragraph, a regulation is
                  significant if the Administrator, in consultation with the
                  Secretary (as appropriate), determines that the regulation
                  is likely to--
                        `(I) have an annual effect on the economy of
                      $100,000,000 or more or adversely affect in a material
                      way the economy, a sector of the economy, productivity,
                      competition, jobs, the environment, public health or
                      safety, or State, local, or tribal governments or
                      communities;
                        `(II) create a serious inconsistency or otherwise
                      interfere with an action taken or planned by another
                      agency;
                        `(III) materially alter the budgetary impact of
                      entitlements, grants, user fees, or loan programs or 
                      the rights and obligations of recipients thereof; or
                        `(IV) raise novel legal or policy issues arising out
                      of legal mandates.
                    `(ii) In an emergency, the Administrator may issue a
                  regulation described in clause (i) without prior approval 
                  by the Secretary, but any such emergency regulation is
                  subject to ratification by the Secretary after it is issued
                  and shall be rescinded by the Administrator within 5 days
                  (excluding Saturdays, Sundays, and legal public holidays)
                  after issuance if the Secretary fails to ratify its issuance.
                    `(iii) Any regulation that does not meet the criteria of
                  clause (i), and any regulation or other action that is a
                  routine or frequent action or a procedural action, may be
                  issued by the Administrator without review or approval by
                  the Secretary.
                    `(iv) The Administrator shall submit a copy of any
                  regulation requiring approval by the Secretary under clause
                  (i) to the Secretary, who shall either approve it or return
                  it to the Administrator with comments within 45 days after
                  receiving it.
                    `(C) PERIODIC REVIEW- (i) Beginning on the date which is 
                  3 years after the date of the enactment of the Air Traffic
                  Management System Performance Improvement Act of 1996, the
                  Administrator shall review any unusually burdensome
                  regulation issued by the Administrator after such date of
                  enactment beginning not later than 3 years after the
                  effective date of the regulation to determine if the cost
                  assumptions were accurate, the benefit of the regulations,
                  and the need to continue such regulations in force in their
                  present form.
                    `(ii) The Administrator may identify for review under the
                  criteria set forth in clause (i) unusually burdensome
                  regulations that were issued before the date of the
                  enactment of the Air Traffic Management System Performance
                  Improvement Act of 1996 and that have been in force for 
                  more than 3 years.
                    `(iii) For purposes of this subparagraph, the term
                  `unusually burdensome regulation' means any regulation that
                  results in the annual expenditure by State, local, and
                  tribal governments in the aggregate, or by the private
                  sector, of $25,000,000 or more (adjusted annually for
                  inflation beginning with the year following the date of the
                  enactment of the Air Traffic Management System Performance
                  Act of 1996) in any year.
                    `(iv) The periodic review of regulations may be performed
                  by advisory committees and the Management Advisory Council
                  established under subsection (p).'.
          SEC. 225. PERSONNEL AND SERVICES.
            Section 106  is amended by adding at the end the following:
            `(l) PERSONNEL AND SERVICES- 
                `(1) OFFICERS AND EMPLOYEES- Except as provided in section
              40122(a) of this title and section 347 of Public Law 104-50, 
              the Administrator is authorized, in the performance of the
              functions of the Administrator, to appoint, transfer, and fix
              the compensation of such officers and employees, including
              attorneys, as may be necessary to carry out the functions of 
              the Administrator and the Administration. In fixing 
              compensation and benefits of officers and employees, the
              Administrator shall not engage in any type of bargaining, 
              except to the extent provided for in section 40122(a), nor 
              shall the Administrator be bound by any requirement to 
              establish such compensation or benefits at particular levels.
                `(2) EXPERTS AND CONSULTANTS- The Administrator is authorized
              to obtain the services of experts and consultants in accordance
              with section 3109 of title 5.
                `(3) TRANSPORTATION AND PER DIEM EXPENSES- The Administrator
              is authorized to pay transportation expenses, and per diem in
              lieu of subsistence expenses, in accordance with chapter 57 of
              title 5.
                `(4) USE OF PERSONNEL FROM OTHER AGENCIES- The Administrator
              is authorized to utilize the services of personnel of any other
              Federal agency (as such term is defined under section 551(1) of
              title 5).
                `(5) VOLUNTARY SERVICES- 
                    `(A) GENERAL RULE- In exercising the authority to accept
                  gifts and voluntary services under section 326 of this
                  title, and without regard to section 1342 of title 31, the
                  Administrator may not accept voluntary and uncompensated
                  services if such services are used to displace Federal
                  employees employed on a full-time, part-time, or seasonal
                  basis.
                    `(B) INCIDENTAL EXPENSES- The Administrator is authorized
                  to provide for incidental expenses, including
                  transportation, lodging, and subsistence, for volunteers 
                  who provide voluntary services under this subsection.
                    `(C) LIMITED TREATMENT AS FEDERAL EMPLOYEES- An 
                  individual who provides voluntary services under this
                  subsection shall not be considered a Federal employee for
                  any purpose other than for purposes of chapter 81 of title
                  5, relating to compensation for work injuries, and chapter
                  171 of title 28, relating to tort claims.'.
          SEC. 226. CONTRACTS.
            Section 106(l), as added by section 225 of this Act, is further
          amended by adding at the end the following:
                `(6) CONTRACTS- The Administrator is authorized to enter into
              and perform such contracts, leases, cooperative agreements, or
              other transactions as may be necessary to carry out the
              functions of the Administrator and the Administration. The
              Administrator may enter into such contracts, leases, 
              cooperative agreements, and other transactions with any Federal
              agency (as such term is defined in section 551(1) of title 5) 
              or any instrumentality of the United States, any State,
              territory, or possession, or political subdivision thereof, any
              other governmental entity, or any person, firm, association,
              corporation, or educational institution, on such terms and
              conditions as the Administrator may consider appropriate.'.
          SEC. 227. FACILITIES.
            Section 106, as amended by section 225 of this Act, is further
          amended by adding at the end the following:
            `(m) COOPERATION BY ADMINISTRATOR- With the consent of 
          appropriate officials, the Administrator may, with or without
          reimbursement, use or accept the services, equipment, personnel, 
          and facilities of any other Federal agency (as such term is defined
          in section 551(1) of title 5) and any other public or private
          entity. The Administrator may also cooperate with appropriate
          officials of other public and private agencies and 
          instrumentalities concerning the use of services, equipment,
          personnel, and facilities. The head of each Federal agency shall
          cooperate with the Administrator in making the services, equipment,
          personnel, and facilities of the Federal agency available to the
          Administrator. The head of a Federal agency is authorized,
          notwithstanding any other provision of law, to transfer to or to
          receive from the Administration, without reimbursement, supplies 
          and equipment other than administrative supplies or equipment.'.
          SEC. 228. PROPERTY.
            Section 106, as amended by section 227 of this Act, is further
          amended by adding at the end the following:
            `(n) ACQUISITION- 
                `(1) IN GENERAL- The Administrator is authorized--
                    `(A) to acquire (by purchase, lease, condemnation, or
                  otherwise), construct, improve, repair, operate, and
                  maintain--
                        `(i) air traffic control facilities and equipment;
                        `(ii) research and testing sites and facilities; and
                        `(iii) such other real and personal property
                      (including office space and patents), or any interest
                      therein, within and outside the continental United
                      States as the Administrator considers necessary;
                    `(B) to lease to others such real and personal property;
                  and
                    `(C) to provide by contract or otherwise for eating
                  facilities and other necessary facilities for the welfare 
                  of employees of the Administration at the installations of
                  the Administration, and to acquire, operate, and maintain
                  equipment for these facilities.
                `(2) TITLE- Title to any property or interest therein 
              acquired pursuant to this subsection shall be held by the
              Government of the United States.'.
          SEC. 229. TRANSFERS OF FUNDS FROM OTHER FEDERAL AGENCIES.
            Section 106, as amended by section 228 of this Act, is further
          amended by adding at the end the following:
            `(o) TRANSFERS OF FUNDS- The Administrator is authorized to 
          accept transfers of unobligated balances and unexpended balances of
          funds appropriated to other Federal agencies (as such term is
          defined in section 551(1) of title 5) to carry out functions
          transferred by law to the Administrator or functions transferred
          pursuant to law to the Administrator on or after the date of the
          enactment of the Air Traffic Management System Performance
          Improvement Act of 1996.'.
          SEC. 230. MANAGEMENT ADVISORY COUNCIL.
            Section 106, as amended by section 229 of this Act, is further
          amended by adding at the end the following:
            `(p) MANAGEMENT ADVISORY COUNCIL- 
                `(1) ESTABLISHMENT- Within 3 months after the date of the
              enactment of the Air Traffic Management System Performance
              Improvement Act of 1996, the Administrator shall establish an
              advisory council which shall be known as the Federal Aviation
              Management Advisory Council (in this subsection referred to as
              the `Council'). With respect to Administration management,
              policy, spending, funding, and regulatory matters affecting the
              aviation industry, the Council may submit comments, recommended
              modifications, and dissenting views to the Administrator. The
              Administrator shall include in any submission to Congress, the
              Secretary, or the general public, and in any submission for
              publication in the Federal Register, a description of the
              comments, recommended modifications, and dissenting views
              received from the Council, together with the reasons for any
              differences between the views of the Council and the views or
              actions of the Administrator.
                `(2) MEMBERSHIP- The Council shall consist of 15 members, who
              shall consist of--
                    `(A) a designee of the Secretary of Transportation;
                    `(B) a designee of the Secretary of Defense; and
                    `(C) 13 members representing aviation interests, 
                  appointed by the President by and with the advice and
                  consent of the Senate.
                `(3) QUALIFICATIONS- No member appointed under paragraph
              (2)(C) may serve as an officer or employee of the United States
              Government while serving as a member of the Council.
                `(4) FUNCTIONS- 
                    `(A) IN GENERAL- (i) The Council shall provide advice and
                  counsel to the Administrator on issues which affect or are
                  affected by the operations of the Administrator. The 
                  Council shall function as an oversight resource for
                  management, policy, spending, and regulatory matters under
                  the jurisdiction of the Administration.
                    `(ii) The Council shall review the rulemaking 
                  cost-benefit analysis process and develop recommendations 
                  to improve the analysis and ensure that the public interest
                  is fully protected.
                    `(iii) The Council shall review the process through which
                  the Administration determines to use advisory circulars and
                  service bulletins.
                    `(B) MEETINGS- The Council shall meet on a regular and
                  periodic basis or at the call of the chairman or of the
                  Administrator.
                    `(C) ACCESS TO DOCUMENTS AND STAFF- The Administration 
                  may give the Council appropriate access to relevant
                  documents and personnel of the Administration, and the
                  Administrator shall make available, consistent with the
                  authority to withhold commercial and other proprietary
                  information under section 552 of title 5 (commonly known as
                  the `Freedom of Information Act'), cost data associated 
                  with the acquisition and operation of air traffic service
                  systems. Any member of the Council who receives commercial
                  or other proprietary data from the Administrator shall be
                  subject to the provisions of section 1905 of title 18,
                  pertaining to unauthorized disclosure of such information.
                `(5) FEDERAL ADVISORY COMMITTEE ACT NOT TO APPLY- The Federal
              Advisory Committee Act (5 U.S.C. App.) does not apply to the
              Council or such aviation rulemaking committees as the
              Administrator shall designate.
                `(6) Administrative matters- 
                    `(A) TERMS OF MEMBERS- (i) Except as provided in
                  subparagraph (B), members of the Council appointed by the
                  President under paragraph (2)(C) shall be appointed for a
                  term of 3 years.
                    `(ii) Of the members first appointed by the President--
                        `(I) 4 shall be appointed for terms of 1 year;
                        `(II) 5 shall be appointed for terms of 2 years; and
                        `(III) 4 shall be appointed for terms of 3 years.
                    `(iii) An individual chosen to fill a vacancy shall be
                  appointed for the unexpired term of the member replaced.
                    `(iv) A member whose term expires shall continue to serve
                  until the date on which the member's successor takes office.
                    `(B) CHAIRMAN; VICE CHAIRMAN- The Council shall elect a
                  chair and a vice chair from among the members appointed
                  under paragraph (2)(C), each of whom shall serve for a term
                  of 1 year. The vice chair shall perform the duties of the
                  chairman in the absence of the chairman.
                    `(C) TRAVEL AND PER DIEM- Each member of the Council 
                  shall be paid actual travel expenses, and per diem in lieu
                  of subsistence expenses when away from his or her usual
                  place of residence, in accordance with section 5703 of 
                  title 5.
                    `(D) DETAIL OF PERSONNEL FROM THE ADMINISTRATION- The
                  Administrator shall make available to the Council such
                  staff, information, and administrative services and
                  assistance as may reasonably be required to enable the
                  Council to carry out its responsibilities under this
                  subsection.'.
            SUBTITLE B--FEDERAL AVIATION ADMINISTRATION STREAMLINING PROGRAMS
          SEC. 251. REVIEW OF ACQUISITION MANAGEMENT SYSTEM.
            Not later than April 1, 1999, the Administrator shall employ
          outside experts to provide an independent evaluation of the
          effectiveness of the Administration's acquisition management system
          within 3 months after such date. The Administrator shall transmit a
          copy of the evaluation to the Committee on Commerce, Science, and
          Transportation of the Senate and the Committee on Transportation 
          and Infrastructure of the House of Representatives.
          SEC. 252. AIR TRAFFIC CONTROL MODERNIZATION REVIEWS.
            Chapter 401 is amended by adding at the end the following:
          `Sec. 40121. Air traffic control modernization reviews
            `(a) REQUIRED TERMINATIONS OF ACQUISITIONS- The Administrator of
          the Federal Aviation Administration shall terminate any acquisition
          program initiated after the date of the enactment of the Air 
          Traffic Management System Performance Improvement Act of 1996 and
          funded under the Facilities and Equipment account that--
                `(1) is more than 50 percent over the cost goal established
              for the program;
                `(2) fails to achieve at least 50 percent of the performance
              goals established for the program; or
                `(3) is more than 50 percent behind schedule as determined in
              accordance with the schedule goal established for the program.
            `(b) AUTHORIZED TERMINATION OF ACQUISITION PROGRAMS- The
          Administrator shall consider terminating, under the authority of
          subsection (a), any substantial acquisition program that--
                `(1) is more than 10 percent over the cost goal established
              for the program;
                `(2) fails to achieve at least 90 percent of the performance
              goals established for the program; or
                `(3) is more than 10 percent behind schedule as determined in
              accordance with the schedule goal established for the program.
            `(c) EXCEPTIONS AND REPORT- 
                `(1) CONTINUANCE OF PROGRAM, ETC- Notwithstanding subsection
              (a), the Administrator may continue an acquisitions program
              required to be terminated under subsection (a) if the
              Administrator determines that termination would be inconsistent
              with the development or operation of the national air
              transportation system in a safe and efficient manner.
                `(2) DEPARTMENT OF DEFENSE- The Department of Defense shall
              have the same exemptions from acquisition laws as are waived by
              the Administrator under section 348(b) of Public Law 104-50 
              when engaged in joint actions to improve or replenish the
              national air traffic control system.  The Administration may
              acquire real property, goods, and services through the
              Department of Defense, or other appropriate agencies, but is
              bound by the acquisition laws and regulations governing those
              cases.
                `(3) REPORT- If the Administrator makes a determination under
              paragraph (1), the Administrator shall transmit a copy of the
              determination, together with a statement of the basis for the
              determination, to the Committees on Appropriations of the 
              Senate and the House of Representatives, the Committee on
              Commerce, Science, and Transportation of the Senate, and the
              Committee on Transportation and Infrastructure of the House of
              Representatives.'.
          SEC. 253. FEDERAL AVIATION ADMINISTRATION PERSONNEL MANAGEMENT
                            SYSTEM.
            Chapter 401, as amended by section 252 of this Act, is further
          amended by adding at the end the following:
          `Sec. 40122. Federal Aviation Administration personnel management
          system
            `(a) In General- 
                `(1) CONSULTATION AND NEGOTIATION- In developing and making
              changes to the personnel management system initially 
              implemented by the Administrator of the Federal Aviation
              Administration on April 1, 1996, the Administrator shall
              negotiate with the exclusive bargaining representatives of
              employees of the Administration certified under section 7111 of
              title 5 and consult with other employees of the Administration.
                `(2) MEDIATION- If the Administrator does not reach an
              agreement under paragraph (1) with the exclusive bargaining
              representatives, the services of the Federal Mediation and
              Conciliation Service shall be used to attempt to reach such
              agreement. If the services of the Federal Mediation and
              Conciliation Service do not lead to an agreement, the
              Administrator's proposed change to the personnel management
              system shall not take effect until 60 days have elapsed after
              the Administrator has transmitted the proposed change, along
              with the objections of the exclusive bargaining representatives
              to the change, and the reasons for such objections, to Congress.
                `(3) COST SAVINGS AND PRODUCTIVITY GOALS- The Administration
              and the exclusive bargaining representatives of the employees
              shall use every reasonable effort to find cost savings and to
              increase productivity within each of the affected bargaining
              units.
                `(4) ANNUAL BUDGET DISCUSSIONS- The Administration and the
              exclusive bargaining representatives of the employees shall 
              meet annually for the purpose of finding additional cost 
              savings within the Administration's annual budget as it applies
              to each of the affected bargaining units and throughout the
              agency.
            `(b) EXPERT EVALUATION- On the date that is 3 years after the
          personnel management system is implemented, the Administration 
          shall employ outside experts to provide an independent evaluation 
          of the effectiveness of the system within 3 months after such date.
          For this purpose, the Administrator may utilize the services of
          experts and consultants under section 3109 of title 5 without 
          regard to the limitation imposed by the last sentence of section
          3109(b) of such title, and may contract on a sole source basis,
          notwithstanding any other provision of law to the contrary.
            `(c) PAY RESTRICTION- No officer or employee of the 
          Administration may receive an annual rate of basic pay in excess of
          the annual rate of basic pay payable to the Administrator.
            `(d) ETHICS- The Administration shall be subject to Executive
          Order No. 12674 and regulations and opinions promulgated by the
          Office of Government Ethics, including those set forth in section
          2635 of title 5 of the Code of Federal Regulations.
            `(e) EMPLOYEE PROTECTIONS- Until July 1, 1999, basic wages
          (including locality pay) and operational differential pay provided
          employees of the Administration shall not be involuntarily 
          adversely affected by reason of the enactment of this section,
          except for unacceptable performance or by reason of a reduction in
          force or reorganization or by agreement between the Administration
          and the affected employees' exclusive bargaining representative.
            `(f) LABOR-MANAGEMENT AGREEMENTS- Except as otherwise provided by
          this title, all labor-management agreements covering employees of
          the Administration that are in effect on the effective date of the
          Air Traffic Management System Performance Improvement Act of 1996
          shall remain in effect until their normal expiration date, unless
          the Administrator and the exclusive bargaining representative agree
          to the contrary.'.

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