Summary

Introduced September 13, 1995 by Sens. John McCain (R-Ariz.), Wendell Ford (D-Ky.) and Ernest Hollings (D-S.C.).

A. Governance

1. FAA Administrator is appointed for a five-year term and confirmed by the Senate.
2. Personnel and procurement decisions are made by FAA.
3. Regulations: Significant regulations are submitted to DOT for approval. Regulations are determined to be significant if the regulations will result in expenditures by governments or private sector of $50 million per year or meet the criteria specified in Executive Order 12866. All regulations that cost more than $25 million per year would be reviewed by FAA after three years.
4. Management Advisory Council: The bill establishes a 15-member advisory council, with ability to review budget and fee policies and to provide management advice to the FAA administrator.

B. Personnel and Procurement:

1. FAA must develop new personnel and procurement systems within 180 days and submit the plans to Congress for review. Current rights of unions would not be changed, and they would be consulted on new personnel system.
2. To promote flexibility in administration and efficiency, a number of existing requirements under Federal personnel and procurement law may be waived.

C. Innovative Financing Study:

The administrator shall establish a panel of experts to review innovative financing plans, including a limited government-sponsored enterprise to fund specific projects, as well as provide limited additional funds for airport development.

D. Aircraft Emissions:

The bill assigns to FAA the responsibility for addressing aircraft noise and pollutants issues.

E. Termination of Acquisitions:

The bill enables FAA to terminate procurement programs that are more than 50% over cost estimates, 50% under performance goals, or 50% behind schedule. FAA must consider termination of acquisitions that are more than 10% over costs, less than 90% of performance goals or 10% behind schedule.

F. Certification/Licensing Fees and Certain ATC Fees:

1. Within six months after enactment, FAA must set up user fee system for its certification and licensing services. FAA must consult with industry, and then submit the fee system to Congress. Fees under the system are effective 45 days after submitted, unless Congress disapproves fees (under expedited procedures). FAA can develop ATC fees for overflights and business jets.
2. Fees terminate after three years, but may be renewed.
3. FAA and the Defense Department must negotiate a cost reimbursement agreement for air traffic control services provided to DOD.

G. Air Traffic Control Fees:

1. FAA is required to develop a fee system for air traffic control services within one year, with the assistance of outside experts and the management advisory council. No fees may be imposed on a segment of industry unless that segment has its current trust fund taxes decreased, and fees may not exceed 100% of the tax reduction.
2. Fees for air traffic control services are effective, unless Congress disapproves the fees (using expedited procedures).
3. Fees terminate after three years, but may be renewed.

H. Administrative Provisions:

The bill establishes offsetting collections, and requires annual budget of fees by FAA. The congressional process for disapproving certification/licensing fees is specified.

I. Multi-Year Appropriation:

The bill requires that FAA funds be appropriated for three-year periods.