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

 

S. 1994 Federal Aviation Reauthorization Act of 1996

(continued)


     SEC. 625. PERSONNEL AND SERVICES.

       Section 106 is amended by adding at the end the following 
     new subsection:
       ``(l) Personnel and Services.--
       ``(1) Officers and employees.--Except as provided in 
     section 40121(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 40121(a), nor 
     shall the Administrator be bound by any requirement to 
     establish such compensation or benefits at particular levels.

[[Page S10768]]

       ``(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) In general.--(i) 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.
       ``(ii) The Administrator is authorized to provide for 
     incidental expenses, including transportation, lodging, and 
     subsistence for volunteers who provide voluntary services 
     under this subsection.
       ``(iii) 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. 626. CONTRACTS.

       Section 106(l), as added by section 625 of this title, is 
     amended by adding at the end the following new paragraph:
       ``(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. 627. FACILITIES.

       Section 106, as amended by section 625 of this title, is 
     further amended by adding at the end the following new 
     subsection:
       ``(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. 628. PROPERTY.

       Section 106, as amended by section 627 of this title, is 
     further amended by adding at the end the following new 
     subsection:
       ``(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. 629. TRANSFERS OF FUNDS FROM OTHER FEDERAL AGENCIES.

       Section 106, as amended by section 628 of this title, is 
     further amended by adding at the end the following new 
     subsection:
       ``(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. 630. MANAGEMENT ADVISORY COUNCIL.

       Section 106, as amended by section 629 of this title, is 
     further amended by adding at the end the following new 
     subsection:
       ``(p) Management Advisory Council.--
       ``(1) Establishment.--Within 3 months after the date of 
     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.
       ``(7) Report to Congress.--The Council, in conjunction with 
     the Administration, shall undertake a review of the overall 
     condition of aviation safety in the United States and 
     emerging trends in the safety of particular sections of the 
     aviation industry. This shall include an examination of--
       ``(A) the extent to which the dual mission of the 
     Administration to promote and regulate civil aviation may 
     affect aviation safety and provide recommendations to 
     Congress for any necessary changes the Council, in 
     conjunction with Administration, deems appropriate; and
       ``(B) the adequacy of staffing and training resources for 
     safety personnel of the Administration, including safety 
     inspectors.
     The Council shall report to Congress within 180 days after 
     the date of enactment of this Act on its findings and 
     recommendations under this paragraph.

     SEC. 631. AIRCRAFT ENGINE STANDARDS.

       Subsection (a)(1) of section 44715 is amended to read as 
     follows:
       ``(a) Standards and Regulations.--(1) To relieve and 
     protect the public health and welfare

[[Page S10769]]

     from aircraft noise, sonic boom, the Administrator of the 
     Federal Aviation Administration, as he deems necessary, shall 
     prescribe--
       ``(A) standards to measure aircraft noise and sonic boom;
       ``(B) regulations to control and abate aircraft noise and 
     sonic boom; and
       ``(C)(i) the Environmental Protection Agency shall consult 
     with the Federal Aviation Administration on aircraft engine 
     emission standards;
       ``(ii) the Environmental Protection Agency shall not change 
     the aircraft engine emission standards if such change would 
     significantly increase noise and adversely affect safety;
       ``(iii) the Administrator, as the Administrator deems 
     appropriate, shall provide for the participation of a 
     representative of the Environmental Protection Agency on such 
     advisory committees or associated working groups that advise 
     the Administrator on matters related to the environmental 
     effects of aircraft and aircraft engines.''.

     SEC. 632. RURAL AIR FARE STUDY.

       (a) In General.--The Secretary shall conduct a study to--
       (1) compare air fares paid (calculated as both actual and 
     adjusted air fares) for air transportation on flights 
     conducted by commercial air carriers--
       (A) between--
       (i) nonhub airports located in small communities; and
       (ii) large hub airports; and
       (B) between large hub airports;
       (2) analyze--
       (A) the extent to which passenger service that is provided 
     from nonhub airports is provided on--
       (i) regional commuter commercial air carriers; or
       (ii) major air carriers;
       (B) the type of aircraft employed in providing passenger 
     service at nonhub airports; and
       (C) whether there is competition among commercial air 
     carriers with respect to the provision of air service to 
     passengers from nonhub airports.
       (b) Findings.--The Secretary shall include in the report of 
     the study conducted under subsection (a) findings 
     concerning--
       (1) whether passengers who use commercial air carriers to 
     and from rural areas (as defined by the Secretary) pay a 
     disproportionately greater price for that transportation than 
     passengers who use commercial air carriers between urban 
     areas (as defined by the Secretary);
       (2) the nature of competition, if any, in rural markets (as 
     defined by the Secretary) for commercial air carriers;
       (3) whether a relationship exists between higher air fares 
     and competition among commercial air carriers for passengers 
     traveling on jet aircraft from small communities (as defined 
     by the Secretary) and, if such a relation exists, the nature 
     of that relationship;
       (4) the number of small communities that have lost air 
     service as a result of the deregulation of commercial air 
     carriers with respect to air fares;
       (5) the number of small communities served by airports with 
     respect to which, after commercial air carrier fares were 
     deregulated, jet aircraft service was replaced by turboprop 
     aircraft service; and
       (6) where such replacement occurred, any corresponding 
     decreases in available seat capacity for consumers at the 
     airports referred to in that subparagraph.
       (c) Report.--Not later than 60 days after the date of 
     enactment of this Act, the Secretary shall submit a final 
     report on the study carried out under subsection (a) to the 
     Committee on Commerce, Science, and Transportation of the 
     Senate.
       (d) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Adjusted air fare.--The term ``adjusted air fare'' 
     means an actual air fare that is adjusted for distance 
     traveled by a passenger.
       (2) Air carrier.--The term ``air carrier'' is defined in 
     section 40102(a)(2) of title 49, United States Code.
       (3) Airport.--The term ``airport'' is defined in section 
     40102(9) of such title.
       (4) Commercial air carrier.--The term ``commercial air 
     carrier'' means an air carrier that provides air 
     transportation for commercial purposes (as determined by the 
     Secretary).
       (5) Hub airport.--The term ``hub airport'' is defined in 
     section 41731(a)(2) of such title.
       (6) Large hub airport.--The term ``large hub airport'' 
     shall be defined by the Secretary but the definition may not 
     include a small hub airport, as that term is defined in 
     section 41731(a)(5) of such title.
       (7) Major air carrier.--The term ``major air carrier'' 
     shall be defined by the Secretary.
       (8) Nonhub airport.--The term ``nonhub airport'' is defined 
     in section 41731(a)(4) of such title.
       (9) Regional commuter air carrier.--The term ``regional 
     commuter air carrier'' shall be defined by the Secretary.
   Subtitle B--Federal Aviation Administration Streamlining Programs

     SEC. 651. REVIEW OF ACQUISITION MANAGEMENT SYSTEM.

       Not later than April 1, 1999, the Administration shall 
     employ outside experts to provide an independent evaluation 
     of the effectiveness of its 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. 652. AIR TRAFFIC CONTROL MODERNIZATION REVIEWS.

       Chapter 401, as amended by section 402 of this Act, is 
     amended by redesignating section 40121 as 40123, and by 
     inserting after section 40120 the following new section:

     ``Sec. 40121. Air traffic control modernization reviews

       ``(a) Required Terminations of Acquisitions.--The 
     Administrator of the Federal Aviation Administration 
     (hereafter referred to in this section as the 
     `Administrator') shall terminate any program initiated after 
     the date of 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 Terminations of Acquisitions.--The 
     Administrator shall consider terminating, under the authority 
     of subsection (a), any substantial acquisition 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. 653. FEDERAL AVIATION ADMINISTRATION PERSONNEL 
                   MANAGEMENT SYSTEM.

       Chapter 401, as amended by section 652, is further amended 
     by inserting after section 40121 the following new section:

     ``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 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 the 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

[[Page S10770]]

     operational differential pay provided employees of the 
     Administration shall not be involuntarily adversely affected 
     by reason of the enactment of this section, except for 
     unacceptable performance or by reason of a reduction in force 
     or reorganization or by agreement between the Administration 
     and the affected employees' exclusive bargaining 
     representative.
       ``(f) Labor-Management Agreements.--Except as otherwise 
     provided by this title, all labor-management agreements 
     covering employees of the Administration that are in effect 
     on the effective date of the Air Traffic Management System 
     Performance Improvement Act of 1996 shall remain in effect 
     until their normal expiration date, unless the Administrator 
     and the exclusive bargaining representative agree to the 
     contrary.''.

     SEC. 654. CONFORMING AMENDMENT.

       The chapter analysis for chapter 401, as amended by section 
     403(b) of this Act, is amended by striking the item relating 
     to section 40120 and inserting the following new items:

``40121. Air traffic control modernization reviews.
``40122. Federal Aviation Administration personnel management system.
``40123. Relationship to other laws.''.
  Subtitle C--System To Fund Certain Federal Aviation Administration 
                               Functions

     SEC. 671. FINDINGS.

       The Congress finds the following:
       (1) The Administration is recognized throughout the world 
     as a leader in aviation safety.
       (2) The Administration certifies aircraft, engines, 
     propellers, and other manufactured parts.
       (3) The Administration certifies more than 650 training 
     schools for pilots and nonpilots, more than 4,858 repair 
     stations, and more than 193 maintenance schools.
       (4) The Administration certifies pilot examiners, who are 
     then qualified to determine if a person has the skills 
     necessary to become a pilot.
       (5) The Administration certifies more than 6,000 medical 
     examiners, each of whom is then qualified to medically 
     certify the qualifications of pilots and nonpilots.
       (6) The Administration certifies more than 470 airports, 
     and provides a limited certification for another 205 
     airports. Other airports in the United States are also 
     reviewed by the Administration.
       (7) The Administration each year performs more than 355,000 
     inspections.
       (8) The Administration issues more than 655,000 pilot's 
     licenses and more than 560,000 nonpilot's licenses (including 
     mechanics).
       (9) The Administration's certification means that the 
     product meets worldwide recognized standards of safety and 
     reliability.
       (10) The Administration's certification means aviation-
     related equipment and services meet world-wide recognized 
     standards.
       (11) The Administration's certification is recognized by 
     governments and businesses throughout the world and as such 
     may be a valuable element for any company desiring to sell 
     aviation-related products throughout the world.
       (12) The Administration's certification may constitute a 
     valuable license, franchise, privilege or benefits for the 
     holders.
       (13) The Administration also is a major purchaser of 
     computers, radars, and other systems needed to run the air 
     traffic control system. The Administration's design, 
     acceptance, commissioning, or certification of such equipment 
     enables the private sector to market those products around 
     the world, and as such confers a benefit on the manufacturer.
       (14) The Administration provides extensive services to 
     public use aircraft.

     SEC. 672. PURPOSES.

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

     SEC. 673. USER FEES FOR VARIOUS FEDERAL AVIATION 
                   ADMINISTRATION SERVICES.

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

     ``Sec. 45301. General provisions

       ``(a) Schedule of Fees.--The Administrator shall establish 
     a schedule of new fees, and a collection process for such 
     fees, for the following services provided by the 
     Administration:
       ``(1) Air traffic control and related services provided to 
     aircraft other than military and civilian aircraft of the 
     United States government or of a foreign government that 
     neither take off from, nor land in, the United States.
       ``(2) Services (other than air traffic control services) 
     provided to a foreign government.
       ``(b) Limitations.--
       ``(1) Authorization and impact considerations.--In 
     establishing fees under subsection (a), the Administrator--
       ``(A) is authorized to recover in fiscal year 1997 
     $100,000,000; and
       ``(B) shall ensure that each of the fees required by 
     subsection (a) is directly related to the Administration's 
     costs of providing the service rendered. Services for which 
     costs may be recovered include the costs of air traffic 
     control, navigation, weather services, training and emergency 
     services which are available to facilitate safe 
     transportation over the United States, and other services 
     provided by the Administrator or by programs financed by the 
     Administrator to flights that neither take off nor land in 
     the United States.
       ``(2) Publication; comment.--The Administrator shall 
     publish in the Federal Register an initial fee schedule and 
     associated collection process as an interim final rule, 
     pursuant to which public comment will be sought and a final 
     rule issued.
       ``(c) Use of Experts and Consultants.--In developing the 
     system, the Administrator may consult with such 
     nongovernmental experts as the Administrator may employ and 
     the Administrator may utilize the services of experts and 
     consultants under section 3109 of title 5 without regard to 
     the limitation imposed by the last sentence of section 
     3109(b) of such title, and may contract on a sole source 
     basis, notwithstanding any other provision of law to the 
     contrary. Notwithstanding any other provision of law to the 
     contrary, the Administrator may retain such experts under a 
     contract awarded on a basis other than a competitive basis 
     and without regard to any such provisions requiring 
     competitive bidding or precluding sole source contract 
     authority.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     453 is amended by striking the item relating to section 45301 
     and inserting the following new item:

``45301. General provisions.''.

       (c) Repeal.--
       (1) In general.--Section 70118 is repealed.
       (2) Conforming amendment.--The chapter analysis for chapter 
     701 is amended by striking the item relating to section 
     70118.

     SEC. 674. INDEPENDENT ASSESSMENT AND TASK FORCE TO REVIEW 
                   EXISTING AND INNOVATIVE FUNDING MECHANISMS.

       (a) Independent Assessment.--
       (1) Initiation.--As soon as all members of the task force 
     are appointed under subsection (b) of this section, the 
     Administrator shall contract with an entity independent of 
     the Administration and the Department of Transportation to 
     conduct a complete independent assessment of the financial 
     requirements of the Administration through the year 2002.
       (2) Assessment criteria.--The Administrator shall provide 
     to the independent entity estimates of the financial 
     requirements of the Administration for the period described 
     in paragraph (1), using as a base the fiscal year 1997 
     authorization levels established by the Congress. The 
     independent assessment shall be based on an objective 
     analysis of agency funding needs.
       (3) Certain factors to be taken into account.--The 
     independent assessment shall take into account all relevant 
     factors, including--
       (A) anticipated air traffic forecasts;
       (B) other workload measures;
       (C) estimated productivity gains, if any, which contribute 
     to budgetary requirements;
       (D) the need for programs; and
       (E) the need to provide for continued improvements in all 
     facets of aviation safety, along with operational 
     improvements in air traffic control.
       (4) Cost allocation.--The independent assessment shall also 
     assess the costs to the Administration occasioned by the 
     provision of services to each segment of the aviation system.
       (5) Deadline.--The independent assessment shall be 
     completed no later than 90 days after the contract is 
     awarded, and shall be submitted to the task force, the 
     Secretary, the Secretary of the Treasury, the Committee on 
     Commerce, Science, and Transportation and the Committee on 
     Finance of the Senate, and the Committee on Transportation 
     and Infrastructure and the Committee on Ways and Means of the 
     House of Representatives.
       (b) Task Force.--
       (1) Establishment.--Not later than 30 days after the date 
     of enactment of this Act, the Secretary, in consultation with 
     the Secretary of the Treasury, shall establish an 11-member 
     task force, independent of the Administration and the 
     Department of Transportation.
       (2) Membership.--The members of the task force shall be 
     selected from among individuals who have expertise in the 
     aviation industry and who are able, collectively, to 
     represent a balanced view of the issues important to general 
     aviation, major air carriers, air cargo carriers, regional 
     air carriers, business aviation, airports, aircraft 
     manufacturers, the financial community, aviation industry 
     workers, and airline passengers. At least one member of the 
     task force shall have detailed knowledge of the congressional 
     budgetary process.
       (3) Hearings and consultation.--
       (A) Hearings.--The task force shall take such testimony and 
     solicit and receive such comments from the public and other 
     interested parties as it considers appropriate, shall conduct 
     2 public hearings after affording adequate notice to the 
     public thereof, and is authorized to conduct such additional 
     hearings as may be necessary.
       (B) Consultation.--The task force shall consult on a 
     regular and frequent basis with the Secretary of 
     Transportation, the Secretary of the Treasury, the Committee 
     on Commerce, Science, and Transportation and the Committee on 
     Finance of the Senate, and the Committee on

[[Page S10771]]

     Transportation and Infrastructure and the Committee on Ways 
     and Means of the House of Representatives.
       (C) FACA not to apply.--The task force shall not be 
     considered an advisory committee for purposes of the Federal 
     Advisory Committee Act (5 U.S.C. App.).
       (4) Duties.--
       (A) Report to secretary.--
       (i) In general.--The task force shall submit a report 
     setting forth a comprehensive analysis of the 
     Administration's budgetary requirements through fiscal year 
     2002, based upon the independent assessment under subsection 
     (a), that analyzes alternative financing and funding means 
     for meeting the needs of the aviation system through the year 
     2002. The task force shall submit a preliminary report of 
     that analysis to the Secretary not later than 6 months after 
     the independent assessment is completed under subsection (a). 
     The Secretary shall provide comments on the preliminary 
     report to the task force within 30 days after receiving it. 
     The task force shall issue a final report of such 
     comprehensive analysis within 30 days after receiving the 
     Secretary's comments on its preliminary report.
       (ii) Contents.--The report submitted by the task force 
     under clause (i)--

       (I) shall consider the independent assessment under 
     subsection (a);
       (II) shall consider estimated cost savings, if any, 
     resulting from the procurement and personnel reforms included 
     in this Act or in sections 347 and 348 of Public Law 104-50, 
     and additional financial initiatives;
       (III) shall include specific recommendations to the 
     Congress on how the Administration can reduce costs, raise 
     additional revenue for the support of agency operations, and 
     accelerate modernization efforts; and
       (IV) shall include a draft bill containing the changes in 
     law necessary to implement its recommendations.

       (B) Recommendations.--The task force shall make such 
     recommendations under subparagraph (A)(III) as the task force 
     deems appropriate. Those recommendations may include--
       (i) alternative financing and funding proposals, including 
     linked financing proposals;
       (ii) modifications to existing levels of Airport and 
     Airways Trust Fund receipts and taxes for each type of tax;
       (iii) establishment of a cost-based user fee system based 
     on, but not limited to, criteria under subparagraph (F) and 
     methods to ensure that costs are borne by users on a fair and 
     equitable basis;
       (iv) methods to ensure that funds collected from the 
     aviation community are able to meet the needs of the agency;
       (v) methods to ensure that funds collected from the 
     aviation community and passengers are used to support the 
     aviation system;
       (vi) means of meeting the airport infrastructure needs for 
     large, medium, and small airports; and
       (vii) any other matter the task force deems appropriate to 
     address the funding and needs of the Administration and the 
     aviation system.
       (C) Additional recommendations.--The task force report may 
     also make recommendations concerning--
       (i) means of improving productivity by expanding and 
     accelerating the use of automation and other technology;
       (ii) means of contracting out services consistent with this 
     Act, other applicable law, and safety and national defense 
     needs;
       (iii) methods to accelerate air traffic control 
     modernization and improvements in aviation safety and safety 
     services;
       (iv) the elimination of unneeded programs; and
       (v) a limited innovative program based on funding 
     mechanisms such as loan guarantees, financial partnerships 
     with for-profit private sector entities, government-sponsored 
     enterprises, and revolving loan funds, as a means of funding 
     specific facilities and equipment projects, and to provide 
     limited additional funding alternatives for airport capacity 
     development.
       (D) Impact assessment for recommendations.--For each 
     recommendation contained in the task force's report, the 
     report shall include a full analysis and assessment of the 
     impact implementation of the recommendation would have on--
       (i) safety;
       (ii) administrative costs;
       (iii) the congressional budget process;
       (iv) the economics of the industry (including the 
     proportionate share of all users);
       (v) the ability of the Administration to utilize the sums 
     collected; and
       (vi) the funding needs of the Administration.
       (E) Trust fund tax recommendations.--If the task force's 
     report includes a recommendation that the existing Airport 
     and Airways Trust Fund tax structure be modified, the report 
     shall--
       (i) state the specific rates for each group affected by the 
     proposed modifications;
       (ii) consider the impact such modifications shall have on 
     specific users and the public (including passengers); and
       (iii) state the basis for the recommendations.
       (F) Fee system recommendations.--If the task force's report 
     includes a recommendation that a fee system be established, 
     including an air traffic control performance-based user fee 
     system, the report shall consider--
       (i) the impact such a recommendation would have on 
     passengers, air fares (including low-fare, high frequency 
     service), service, and competition;
       (ii) existing contributions provided by individual air 
     carriers toward funding the Administration and the air 
     traffic control system through contributions to the Airport 
     and Airways Trust Fund;
       (iii) continuing the promotion of fair and competitive 
     practices;
       (iv) the unique circumstances associated with interisland 
     air carrier service in Hawaii and rural air service in 
     Alaska;
       (v) the impact such a recommendation would have on service 
     to small communities;
       (vi) the impact such a recommendation would have on 
     services provided by regional air carriers;
       (vii) alternative methodologies for calculating fees so as 
     to achieve a fair and reasonable distribution of costs of 
     service among users;
       (viii) the usefulness of phased-in approaches to 
     implementing such a financing system;
       (ix) means of assuring the provision of general fund 
     contributions, as appropriate, toward the support of the 
     Administration; and
       (x) the provision of incentives to encourage greater 
     efficiency in the provision of air traffic services by the 
     Administration and greater efficiency in the use of air 
     traffic services by aircraft operators.
       (G) Access to documents and staff.--The Administration may 
     give the task force appropriate access to relevant documents 
     and personnel of the Administration, and the Administrator 
     shall make available, consistent with the authority to 
     withhold commercial and other proprietary information under 
     section 552 of title 5, United States Code (commonly known as 
     the `Freedom of Information Act') cost data associated with 
     the acquisition and operation of air traffic service systems. 
     Any member of the task force who receives commercial or other 
     proprietary data from the Administrator shall be subject to 
     the provisions of section 1905 of title 18, United States 
     Code, pertaining to unauthorized disclosure of such 
     information.
       (H) Travel and per diem.--Each member of the task force 
     shall be paid actual travel expenses, and per diem in lieu of 
     subsistence expenses when away from his or her usual place of 
     residence, in accordance with section 5703 of title 5, United 
     States Code.
       (I) Detail of personnel from the administration.--The 
     Administrator shall make available to the task force such 
     staff, information, and administrative services and 
     assistance as may reasonably be required to enable the task 
     force to carry out its responsibilities under this 
     subsection.
       (5) Authorization of appropriations.--There are hereby 
     authorized to be appropriated such sums as may be necessary 
     to carry out the provisions of this subsection.
       (c) Report by Secretary to Congress.--
       (1) Consideration of task force's preliminary report.--
     Within 30 days after receiving the preliminary report of the 
     task force under subsection (b), the Secretary, in 
     consultation with the Secretary of the Treasury, shall 
     furnish comments on that report to the task force.
       (2) Secretary's report to congress.--Within 30 days after 
     receiving the final report of the task force and in no event 
     more than 1 year after the date of enactment of this Act, the 
     Secretary, after consulting the Secretary of the Treasury, 
     shall submit a report, based upon the final report of the 
     task force, containing the Secretary's recommendations for 
     funding the needs of the aviation system through the year 
     2002 to the Committee on Commerce, Science, and 
     Transportation and the Committee on Finance of the Senate and 
     the Committee on Transportation and Infrastructure and the 
     Committee on Ways and means of the House of Representatives.
       (3) Contents.--The Secretary shall include in his report to 
     the Congress under paragraph (2)--
       (A) a copy of the final report of the task force; and
       (B) a draft bill containing the changes in law necessary to 
     implement the Secretary's recommendations.
       (4) Publication.--The Secretary shall cause a copy of the 
     reports to be printed in the Federal Register upon their 
     submission to Congress.
       (d) GAO Audit of Cost Allocation.--The Comptroller General 
     shall conduct an assessment of the manner in which costs for 
     air traffic control services are allocated between the 
     Administration and the Department of Defense. The Comptroller 
     General shall report the results of the assessment, together 
     with any recommendations the Comptroller General may have for 
     reallocation of costs and for opportunities to increase the 
     efficiency of air traffic control services provided by the 
     Administration and by the Department of Defense, to the task 
     force, the Administrator, the Secretary of Defense, the 
     Committee on Transportation and Infrastructuree of the House 
     of Representatives, and the Committee on Commerce, Science, 
     and Transportation of the Senate not later than 120 days 
     after the date of enactment of this Act.

     SEC. 675. PROCEDURE FOR CONSIDERATION OF CERTAIN FUNDING 
                   PROPOSALS.

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

     ``Sec. 48111. Funding proposals

       ``(a) Introduction and Referral.--Within 15 days (not 
     counting any day on which either House is not in session) 
     after a funding proposal is submitted to the House of 
     Representatives and the Senate by the Secretary of 
     Transportation under section 674(c) of the Air Traffic 
     Management System Performance Improvement Act of 1996, an 
     implementing bill with respect to such funding proposal shall 
     be introduced in the House by the Majority Leader of the 
     House, for himself and the Minority Leader of the House, or 
     by Members of the House designated by the Majority Leader and 
     Minority Leader of the House; and shall be introduced in the 
     Senate by the Majority Leader of the Senate, for himself and 
     the Minority Leader of the Senate, or by Members of the 
     Senate designated by the Majority Leader and Minority Leader 
     of the Senate. The implementing bill shall be referred by the 
     Presiding Officers of the respective Houses to the 
     appropriate committee, or, in the case of a

[[Page S10772]]

     bill containing provisions within the jurisdiction of two or 
     more committees, jointly to such committees for consideration 
     of those provisions within their respective jurisdictions.
       ``(b) Consideration in the House of Representatives.--
       ``(1) Referral and reporting.--Any committee of the House 
     of Representatives to which an implementing bill is referred 
     shall report it, with or without recommendation, not later 
     than the 45th calendar day of session after the date of its 
     introduction. If any committee fails to report the bill 
     within that period, it is in order to move that the House 
     discharge the committee from further consideration of the 
     bill. A motion to discharge may be made only by a Member 
     favoring the bill (but only at a time or place designated by 
     the Speaker in the legislative schedule of the day after the 
     calendar day on which the Member offering the motion 
     announces to the House his intention to do so and the form of 
     the motion). The motion is highly privileged. Debate thereon 
     shall be limited to not more than one hour, the time to be 
     divided in the House equally between a proponent and an 
     opponent. The previous question shall be considered as 
     ordered on the motion to its adoption without intervening 
     motion. A motion to reconsider the vote by which the motion 
     is agreed to or disagreed to shall not be in order.
       ``(2) Consideration of implementing bill.--After an 
     implementing bill is reported or a committee has been 
     discharged from further consideration, it is in order to move 
     that the House resolve into the Committee of the Whole House 
     on the State of the Union for consideration of the bill. If 
     reported and the report has been available for at least one 
     calendar day, all points of order against the bill and 
     against consideration of the bill are waived. If discharged, 
     all points of order against the bill and against 
     consideration of the bill are waived. The motion is highly 
     privileged. A motion to reconsider the vote by which the 
     motion is agreed to or disagreed to shall not be in order. 
     During consideration of the bill in the Committee of the 
     Whole, the first reading of the bill shall be dispensed with. 
     General debate shall proceed, shall be confined to the bill, 
     and shall not exceed one hour equally divided and controlled 
     by a proponent and an opponent of the bill. The bill shall be 
     considered as read for amendment under the five-minute rule. 
     Only one motion to rise shall be in order, except if offered 
     by the manager. No amendment to the bill is in order except 
     an amendment that is relevant to aviation funding and the 
     Federal Aviation Administration. Consideration of the bill 
     for amendment shall not exceed one hour excluding time for 
     recorded votes and quorum calls. No amendment shall be 
     subject to further amendment, except pro forma amendments for 
     the purposes of debate only. At the conclusion of the 
     consideration of the bill for amendment, the Committee shall 
     rise and report the bill to the House with such amendments as 
     may have been adopted. The previous question shall be 
     considered as ordered on the bill and amendments thereto to 
     final passage without intervening motion. A motion to 
     reconsider the vote on passage of the bill shall not be in 
     order.
       ``(3) Appeals of rulings.--Appeals from decision of the 
     Chair regarding application of the rules of the House of 
     Representatives to the procedure relating to an implementing 
     bill shall be decided without debate.
       ``(4) Consideration of more than one implementing bill.--It 
     shall not be in order to consider under this subsection more 
     than one implementing bill under this section, except for 
     consideration of a similar Senate bill (unless the House has 
     already rejected an implementing bill) or more than one 
     motion to discharge described in paragraph (1) with respect 
     to an implementing bill.
       ``(c) Consideration in the Senate.--An implementing bill 
     introduced in the Senate shall be referred to the Committee 
     on Commerce, Science, and Transportation. The Committee on 
     Commerce, Science, and Transportation shall report the bill 
     with its recommendations within 60 days following the date of 
     introduction of that bill. Upon the reporting of the bill by 
     the Committee on Commerce, Science, and Transportation, the 
     reported bill shall be referred sequentially to the Committee 
     on Finance for a period of 60 legislative days.
       ``(d) Consideration in Conference.--
       ``(1) Convening of conference.--In the case of disagreement 
     between the two Houses of Congress with respect to an 
     implementing bill passed by both Houses, conferees should be 
     promptly appointed and a conference promptly convened, if 
     necessary.
       ``(2) House consideration.--Notwithstanding any other rule 
     of the House of Representatives, it shall be in order to 
     consider the report of a committee of conference relating to 
     an implementing bill if such report has been available for 
     one calendar day (excluding Saturdays, Sundays, and legal 
     holidays, unless the House is in session on such a day) and 
     the accompanying statement shall have been filed in the 
     House.
       ``(3) Senate consideration.--Consideration in the Senate of 
     the conference report and any amendments in disagreement on 
     an implementing bill shall be limited to not more than 4 
     hours equally divided and controlled by the Majority Leader 
     and the Minority Leader or their designees. A motion to 
     recommit the conference report is not in order.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Implementing bill.--The term `implementing bill' 
     means only a bill of either House of Congress which is 
     introduced as provided in subsection (a) with respect to one 
     or more Federal Aviation Administration funding proposals 
     which contain changes in existing laws or new statutory 
     authority required to implement such funding proposal or 
     proposals.
       ``(2) Funding proposal.--The term `funding proposal' means 
     a proposal to provide interim or permanent funding for 
     operations of the Federal Aviation Administration.
       ``(f) Rules of House of Representatives and Senate.--This 
     section is enacted by the Congress--
       ``(1) as an exercise of the rulemaking power of the House 
     of Representatives and the Senate, respectively, and as such 
     they are deemed a part of the rules of each House, 
     respectively, but applicable only with respect to the 
     procedure to be followed in that House in the case of 
     implementing bills described in subsection (d); and they 
     supersede other rules only to the extent that they are 
     inconsistent therewith; and
       ``(2) with full recognition of the constitutional right of 
     either House to change the rules (so far as relating to the 
     procedure of that House) at any time, in the same manner and 
     to the same extent as in the case of any other rule of that 
     House.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     481 is amended by adding at the end thereof the following:

``48111. Funding proposals.''.

     SEC. 676. ADMINISTRATIVE PROVISIONS.

       (a) In General.--Chapter 453, as amended by section 654 of 
     this title, is further amended by--
       (1) redesignating section 45303 as section 45304; and
       (2) by inserting after section 45302 the following:

     ``Sec. 45303. Administrative provisions

       ``(a) In General.--
       ``(1) Fees payable to administrator.--All fees imposed and 
     amounts collected under this chapter for services performed, 
     or materials furnished, by the Federal Aviation 
     Administration (hereafter in this section referred to as the 
     `Administration') are payable to the Administrator.
       ``(2) Refunds.--The Administrator may refund any fee paid 
     by mistake or any amount paid in excess of that required.
       ``(3) Receipts credited to account.--Notwithstanding 
     section 3302 of title 31 all fees and amounts collected by 
     the Administration, except insurance premiums and other fees 
     charged for the provision of insurance and deposited in the 
     Aviation Insurance Revolving Fund and interest earned on 
     investments of such Fund, and except amounts which on the 
     date of enactment of the Air Traffic Management System 
     Performance Improvement Act of 1996 are required to be 
     credited to the general fund of the Treasury (whether imposed 
     under this section or not)--
       ``(A) shall be credited to a separate account established 
     in the Treasury and made available for Administration 
     activities;
       ``(B) shall be available immediately for expenditure but 
     only for congressionally authorized and intended purposes; 
     and
       ``(C) shall remain available until expended.
       ``(4) Annual budget report by administrator.--The 
     Administrator shall, on the same day each year as the 
     President submits the annual budget to the Congress, provide 
     to the Committee on Commerce, Science, and Transportation of 
     the Senate and the Committee on Transportation and 
     Infrastructure of the House of Representatives--
       ``(A) a list of fee collections by the Administration 
     during the preceding fiscal year;
       ``(B) a list of activities by the Administration during the 
     preceding fiscal year that were supported by fee expenditures 
     and appropriations;
       ``(C) budget plans for significant programs, projects, and 
     activities of the Administration, including out-year funding 
     estimates;
       ``(D) any proposed disposition of surplus fees by the 
     Administration; and
       ``(E) such other information as those committees consider 
     necessary.
       ``(5) Development of cost accounting system.--The 
     Administration shall develop a cost accounting system that 
     adequately and accurately reflects the investments, operating 
     and overhead costs, revenues, and other financial measurement 
     and reporting aspects of its operations.
       ``(6) Compensation to carriers for acting as collection 
     agents.--The Administration shall prescribe regulations to 
     ensure that any air carrier required, pursuant to the Air 
     Traffic Management System Performance Improvement Act of 1996 
     or any amendments made by that Act, to collect a fee imposed 
     on another party by the Administrator may collect from such 
     other party an additional uniform amount that the 
     Administrator determines reflects the necessary and 
     reasonable expenses (net of interest accruing to the carrier 
     after collection and before remittance) incurred in 
     collecting and handling the fee.
       ``(7) Cost reduction and efficiency report.--Prior to the 
     submission of any proposal for establishment, implementation, 
     or expansion of any fees or taxes imposed on the aviation 
     industry, the Administrator shall prepare a report for 
     submission to the Congress which includes--
       ``(A) a justification of the need for the proposed fees or 
     taxes;
       ``(B) a statement of steps taken by the Administrator to 
     reduce costs and improve efficiency within the 
     Administration;
       ``(C) an analysis of the impact of any fee or tax increase 
     on each sector of the aviation transportation industry; and
       ``(D) a comparative analysis of any decrease in tax amounts 
     equal to the receipts from which are credited to the Airport 
     and Airway Trust Fund established under section 9502 of the 
     Internal Revenue Code of 1986.''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     453 is amended by striking the item relating to section 45303 
     and inserting the following:

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

[[Page S10773]]

     SEC. 677. ADVANCE APPROPRIATIONS FOR AIRPORT AND AIRWAY TRUST 
                   FUND ACTIVITIES.

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

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

``Sec.
``48201. Advance appropriations.

     ``Sec. 48201. Advance appropriations

       ``(a) Multiyear Authorizations.--Beginning with fiscal year 
     1998, any authorization of appropriations for an activity for 
     which amounts are to be appropriated from the Airport and 
     Airway Trust Fund established under section 9502 of the 
     Internal Revenue Code of 1986 shall provide funds for a 
     period of not less than 3 fiscal years unless the activity 
     for which appropriations are authorized is to be concluded 
     before the end of that period.
       ``(b) Multiyear Appropriations.--Beginning with fiscal year 
     1998, amounts appropriated from the Airport and Airway Trust 
     Fund shall be appropriated for periods of 3 fiscal years 
     rather than annually.''.
       (b) Conforming Amendment.--The analysis for subtitle VIII 
     is amended by adding at the end the following new item:

``482. Advance appropriations for airport and airway trust48201.''.es..

     SEC. 678. RURAL AIR SERVICE SURVIVAL ACT.

       (a) Short Title.--This section may be cited as the ``Rural 
     Air Service Survival Act''.
       (b) Findings.--The Congress finds that--
       (1) air service in rural areas is essential to a national 
     transportation network;
       (2) the rural air service infrastructure supports the safe 
     operation of all air travel;
       (3) rural air service creates economic benefits for all air 
     carriers by making the national aviation system available to 
     passengers from rural areas;
       (4) rural air service has suffered since deregulation;
       (5) the essential air service program under the Department 
     of Transportation--
       (A) provides essential airline access to rural and isolated 
     rural communities throughout the Nation;
       (B) is necessary for the economic growth and development of 
     rural communities;
       (C) is a critical component of the national transportation 
     system of the United States; and
       (D) has endured serious funding cuts in recent years; and
       (6) a reliable source of funding must be established to 
     maintain air service in rural areas and the essential air 
     service program.
       (c) Essential Air Service Authorization.--Section 41742 is 
     amended to read as follows:

     ``Sec. 41742. Essential air service authorization

       ``(a) In General.--Out of the amounts received by the 
     Administration credited to the account established under 
     section 45303(a)(3) or otherwise provided to the 
     Administration, the sum of $50,000,000 is authorized and 
     shall be made available immediately for obligation and 
     expenditure to carry out the essential air service program 
     under this subchapter for each fiscal year.
       ``(b) Funding for Small Community Air Service.--
     Notwithstanding any other provision of law, moneys credited 
     to the account established under section 45303(a), including 
     the funds derived from fees imposed under the authority 
     contained in section 45301(a), shall be used to carry out the 
     essential air service program under this subchapter. 
     Notwithstanding section 47114(g) of this title, any amounts 
     from those fees that are not obligated or expended at the end 
     of the fiscal year for the purpose of funding the essential 
     air service program under this subchapter shall be made 
     available to the Administration for use in improving rural 
     air safety under subchapter I of chapter 471 of this title 
     and shall be used exclusively for projects at rural airports 
     under this subchapter.''.
       (d) Conforming Amendment.--The chapter analysis for chapter 
     417 is amended by striking the item relating to section 41742 
     and inserting the following:

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

       (e) Secretary May Require Matching Local Funds.--Section 
     41737 is amended by adding at the end thereof the following:
       ``(e) Matching Funds.--No earlier than 2 years after the 
     effective date of section 679 of the Air Traffic Management 
     System Performance Improvement Act of 1996, the Secretary may 
     require an eligible agency, as defined in section 40117(a)(2) 
     of this title, to provide matching funds of up to 10 percent 
     for any payments it receives under this subchapter.''.
       (f) Transfer of Essential Air Service Program to FAA.--The 
     responsibility for administration of subchapter II of chapter 
     417 is transferred from the Secretary of Transportation to 
     the Administrator.
                        TITLE VII--PILOT RECORDS

     SEC. 701. SHORT TITLE.

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

     SEC. 702. EMPLOYMENT INVESTIGATIONS OF PILOT APPLICANTS.

       (a) In General.--Section 44936 is amended by adding at the 
     end the following new subsection:
       ``(f) Records of Employment of Pilot Applicants.--
       ``(1) In general.--Before hiring an individual as a pilot, 
     an air carrier shall request and receive the following 
     information:
       ``(A) FAA records.--From the Administrator of the Federal 
     Aviation Administration (hereafter in this subsection 
     referred to as the `Administrator'), records pertaining to 
     the individual that are maintained by the Administrator 
     concerning--
       ``(i) current airman certificates (including airman medical 
     certificates) and associated type ratings, including any 
     limitations to those certificates and ratings; and
       ``(ii) summaries of legal enforcement actions resulting in 
     a finding by the Administrator of a violation of this title 
     or a regulation prescribed or order issued under this title 
     that was not subsequently overturned.
       ``(B) Air carrier and other records.--From any air carrier 
     or other person that has employed the individual at any time 
     during the 5-year period preceding the date of the employment 
     application of the individual, or from the trustee in 
     bankruptcy for such air carrier or person--
       ``(i) records pertaining to the individual that are 
     maintained by an air carrier under regulations set forth in--

       ``(I) section 121.683 of title 14, Code of Federal 
     Regulations;
       ``(II) paragraph (A) of section VI, appendix I, part 121 of 
     such title;
       ``(III) paragraph (A) of section IV, appendix J, part 121 
     of such title;
       ``(IV) section 125.401 of such title; and
       ``(V) section 135.63(a)(4) of such title; and

       ``(ii) other records pertaining to the individual that are 
     maintained by the air carrier or person concerning--

       ``(I) the training, qualifications, proficiency, or 
     professional competence of the individual, including comments 
     and evaluations made by a check airman designated in 
     accordance with section 121.411, 125.295, or 135.337 of such 
     title;
       ``(II) any disciplinary action taken with respect to the 
     individual that was not subsequently overturned; and
       ``(III) any release from employment or resignation, 
     termination, or disqualification with respect to employment.

       ``(C) National driver register records.--In accordance with 
     section 30305(b)(7), from the chief driver licensing official 
     of a State, information concerning the motor vehicle driving 
     record of the individual.
       ``(2) Written consent; release from liability.--An air 
     carrier making a request for records under paragraph (1)--
       ``(A) shall be required to obtain written consent to the 
     release of those records from the individual that is the 
     subject of the records requested; and
       ``(B) may, notwithstanding any other provision of law or 
     agreement to the contrary, require the individual who is the 
     subject of the records to request to execute a release from 
     liability for any claim arising from the furnishing of such 
     records to or the use of such records by such air carrier 
     (other than a claim arising from furnishing information known 
     to be false and maintained in violation of a criminal 
     statute).
       ``(3) 5-year reporting period.--A person shall not furnish 
     a record in response to a request made under paragraph (1) if 
     the record was entered more than 5 years before the date of 
     the request, unless the information concerns a revocation or 
     suspension of an airman certificate or motor vehicle license 
     that is in effect on the date of the request.
       ``(4) Requirement to maintain records.--The Administrator 
     shall maintain pilot records described in paragraph (1)(A) 
     for a period of at least 5 years.
       ``(5) Receipt of consent; provision of information.--A 
     person shall not furnish a record in response to a request 
     made under paragraph (1) without first obtaining a copy of 
     the written consent of the individual who is the subject of 
     the records requested. A person who receives a request for 
     records under this paragraph shall furnish a copy of all of 
     such requested records maintained by the person not later 
     than 30 days after receiving the request.
       ``(6) Right to receive notice and copy of any record 
     furnished.--A person who receives a request for records under 
     paragraph (1) shall provide to the individual who is the 
     subject of the records--
       ``(A) written notice of the request and of the right of 
     that individual to receive a copy of such records; and
       ``(B) a copy of such records, if requested by the 
     individual.
       ``(7) Reasonable charges for processing requests and 
     furnishing copies.--A person who receives a request under 
     paragraph (1) or (6) may establish a reasonable charge for 
     the cost of processing the request and furnishing copies of 
     the requested records.
       ``(8) Standard forms.--The Administrator shall promulgate--
       ``(A) standard forms that may be used by an air carrier to 
     request records under paragraph (1); and
       ``(B) standard forms that may be used by an air carrier 
     to--
       ``(i) obtain the written consent of the individual who is 
     the subject of a request under paragraph (1); and
       ``(ii) inform the individual of--

       ``(I) the request; and
       ``(II) the individual right of that individual to receive a 
     copy of any records furnished in response to the request.

       ``(9) Right to correct inaccuracies.--An air carrier that 
     maintains or requests and receives the records of an 
     individual under paragraph (1) shall provide the individual 
     with a reasonable opportunity to submit written comments to 
     correct any inaccuracies contained in the records before 
     making a final hiring decision with respect to the 
     individual.
       ``(10)  Right of pilot to review certain records.--
     Notwithstanding any other provision of law or agreement, an 
     air carrier shall, upon written request from a pilot employed 
     by such carrier, make available, within a reasonable time of 
     the request, to the pilot for review, any and all employment 
     records referred to in paragraph (1)(B) (i) or (ii) 
     pertaining to the employment of the pilot.

[[Page S10774]]

       ``(11) Privacy protections.--An air carrier that receives 
     the records of an individual under paragraph (1) may use such 
     records only to assess the qualifications of the individual 
     in deciding whether or not to hire the individual as a pilot. 
     The air carrier shall take such actions as may be necessary 
     to protect the privacy of the pilot and the confidentiality 
     of the records, including ensuring that information contained 
     in the records is not divulged to any individual that is not 
     directly involved in the hiring decision.
       ``(12) Periodic review.--Not later than 18 months after the 
     date of enactment of the Pilot Records Improvement Act of 
     1996, and at least once every 3 years thereafter, the 
     Administrator shall transmit to the Congress a statement that 
     contains, taking into account recent developments in the 
     aviation industry--
       ``(A) recommendations by the Administrator concerning 
     proposed changes to Federal Aviation Administration records, 
     air carrier records, and other records required to be 
     furnished under subparagraphs (A) and (B) of paragraph (1); 
     or
       ``(B) reasons why the Administrator does not recommend any 
     proposed changes to the records referred to in subparagraph 
     (A).
       ``(13) Regulations.--The Administrator may prescribe such 
     regulations as may be necessary--
       ``(A) to protect--
       ``(i) the personal privacy of any individual whose records 
     are requested under paragraph (1); and
       ``(ii) the confidentiality of those records;
       ``(B) to preclude the further dissemination of records 
     received under paragraph (1) by the person who requested 
     those records; and
       ``(C) to ensure prompt compliance with any request made 
     under paragraph (1).
       ``(g) Limitation on Liability; Preemption of State Law.--
       ``(1) Limitation on liability.--No action or proceeding may 
     be brought by or on behalf of an individual who has applied 
     for or is seeking a position with an air carrier as a pilot 
     and who has signed a release from liability, as provided for 
     under paragraph (2), against--
       ``(A) the air carrier requesting the records of that 
     individual under subsection (a)(1);
       ``(B) a person who has complied with such request; or
       ``(C) an agent or employee of a person described in 
     subparagraph (A) or (B);
     in the nature of an action for defamation, invasion of 
     privacy, negligence, interference with contract, or 
     otherwise, or under any Federal or State law with respect to 
     the furnishing or use of such records in accordance with 
     subsection (a).
       ``(2) Preemption.--No State or political subdivision 
     thereof may enact, prescribe, issue, continue in effect, or 
     enforce any law (including any regulation, standard, or other 
     provision having the force and effect of law) that prohibits, 
     penalizes, or imposes liability for furnishing or using 
     records in accordance with subsection (a).
       ``(3) Provision of knowingly false information.--Paragraphs 
     (1) and (2) shall not apply with respect to a person who 
     furnishes information in response to a request made under 
     subsection (f)(1), that--
       ``(A) the person knows is false; and
       ``(B) was maintained in violation of a criminal statute of 
     the United States.''.
       (b) Conforming Amendment.--Section 30305(b) is amended--
       (1) by redesignating paragraph (7) as paragraph (8); and
       (2) by inserting after paragraph (6) the following:
       ``(7) An individual who is seeking employment by an air 
     carrier as a pilot may request the chief driver licensing 
     official of a State to provide information about the 
     individual under paragraph (2) to the prospective employer of 
     the individual or to the Secretary of Transportation. 
     Information may not be obtained from the National Driver 
     Register under this subsection if the information was entered 
     in the Register more than 5 years before the request unless 
     the information is about a revocation or suspension still in 
     effect on the date of the request.''.
       (c) Applicability.--The amendments made by this section 
     shall apply to any air carrier hiring an individual as a 
     pilot whose application was first received by the carrier on 
     or after the 120th day after the date of enactment of this 
     Act.

     SEC. 703. STUDY OF MINIMUM STANDARDS FOR PILOT 
                   QUALIFICATIONS.

       The Administrator shall appoint a task force consisting of 
     appropriate representatives of the aviation industry to 
     conduct a study directed toward the development of--
       (1) standards and criteria for preemployment screening 
     tests measuring the psychomotor coordination, general 
     intellectual capacity, instrument and mechanical 
     comprehension, and physical and mental fitness of an 
     applicant for employment as a pilot by an air carrier; and
       (2) standards and criteria for pilot training facilities to 
     be licensed by the Administrator and which will assure that 
     pilots trained at such facilities meet the preemployment 
     screening standards and criteria described in paragraph (1).
                TITLE VIII--ABOLITION OF BOARD OF REVIEW

     SEC. 801. ABOLITION OF BOARD OF REVIEW AND RELATED AUTHORITY.

       (a) Abolition of Board of Review.--Section 6007 of the 
     Metropolitan Washington Airports Act of 1986 (formerly 49 
     U.S.C. App. 2456) is amended--
       (1) by striking subsections (f) and (h);
       (2) by redesignating subsection (g) as subsection (f); and
       (3) by redesignating subsection (i) as subsection (g).
       (b) Conforming Amendments.--
       (1) Relationship to and effect of other laws.--Section 
     6009(b) of the Metropolitan Washington Airports Act of 1986 
     (formerly 49 U.S.C. App. 2458(b)) is amended by striking ``or 
     by reason of the authority'' and all that follows through the 
     end of the subsection and inserting a period.
       (2) Separability.--Section 6011 of the Metropolitan 
     Washington Airports Act of 1986 (formerly 49 U.S.C. App. 
     2460) is amended by striking ``Except as provided in section 
     6007(h), if'' and inserting ``If''.
       (c) Protection of Certain Actions.--Any action taken by the 
     Airports Authority and submitted to the Board of Review 
     pursuant to section 6007(f)(4) of the Metropolitan Washington 
     Airports Act of 1986 before April 1, 1995, shall remain in 
     effect and shall not be set aside solely by reason of a 
     judicial order invalidating certain functions of the Board.

     SEC. 802. SENSE OF THE SENATE.

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

     SEC. 803. CONFORMING AMENDMENTS IN OTHER LAW.

       Any reference in any Federal law, Executive order, rule, 
     regulation, or delegation of authority to the Board of Review 
     or the provisions of law repealed under this title is hereby 
     repealed.

     SEC. 804. DEFINITIONS.

       For purposes of this title--
       (1) the terms ``Airports Authority'', ``Washington National 
     Airport'', and ``Washington Dulles International Airport'' 
     have the same meanings as in section 6004 of the Metropolitan 
     Washington Airports Act of 1986; and
       (2) the term ``Board of Review'' means the Board of Review 
     of the Airports Authority.

     SEC. 805. INCREASE IN NUMBER OF PRESIDENTIALLY APPOINTED 
                   MEMBERS OF BOARD.

       (a) In General.--Section 6007(e) of the Metropolitan 
     Washington Airports Act of 1986 (formerly 49 U.S.C. 2456(e)) 
     is amended--
       (1) by striking ``11 members,'' in paragraph (1) and 
     inserting ``13 members,'';
       (2) by striking ``one member'' in paragraph (1)(D) and 
     inserting ``3 members''; and
       (3) by striking ``Seven'' in paragraph (5) and inserting 
     ``Eight''.
       (b) Staggering Terms for Presidential Appointees.--Of the 
     members first appointed by the President after the date of 
     enactment of this Act--
       (1) one shall be appointed for a term that expires 
     simultaneously with the term of the member of the 
     Metropolitan Washington Airports Authority board of directors 
     serving on that date (or, if there is a vacancy in that 
     office, the member appointed to fill the existing vacancy and 
     the member to whom this paragraph applies shall be appointed 
     for 2 years);
       (2) one shall be appointed for a term ending 2 years after 
     the term of the member (or members) to whom paragraph (1) 
     applies expires; and
       (3) one shall be appointed for a term ending 4 years after 
     the term of the member (or members) to whom paragraph (1) 
     applies expires.

     SEC. 806. RECONSTITUTED BOARD TO FUNCTION WITHOUT 
                   INTERRUPTION.

       Notwithstanding any provision of State law, including those 
     provisions establishing, providing for the establishment of, 
     or recognizing the Metropolitan Washington Airports 
     Authority, and based upon the Federal interest in the 
     continued functions of the Metropolitan Washington Airports 
     (as defined in section 6004(4) of the Metropolitan Washington 
     Airports Authority Act of 1986 (formerly 49 U.S.C. 2451(4)), 
     the board of directors of such Authority, including any 
     members appointed under the amendments made by section 805, 
     shall continue to meet and act after the date of enactment of 
     this Act until such time as necessary conforming changes in 
     State law are made in the same manner as if those conforming 
     changes had been enacted on the date of enactment of this 
     Act.

     SEC. 807. OPERATIONAL SLOTS AT NATIONAL AIRPORT.

       Nothing in this title shall affect the number or 
     distribution of operational slots at National Airport.

     SEC. 808. AIRPORTS AUTHORITY SUPPORT OF BOARD.

       Section 6005 of the Metropolitan Washington Airports 
     Authority Act of 1986 (formerly 49 U.S.C. 2454) is amended by 
     adding at the end thereof the following:
       ``(f) Federal Agency Oversight.--The Airports Authority 
     shall not be required--
       ``(1) to pay any person;
       ``(2) to provide office space or administrative support; or
       ``(3) to reimburse the Secretary of Transportation for 
     expenses incurred,

     for carrying out any Federal agency oversight 
     responsibilities under this Act. Nothing in this subsection 
     precludes the Airport Authority from providing services or 
     expenses to any member of the Board of Directors.''.
                  TITLE IX--AIRPORT REVENUE PROTECTION

     SEC. 901. SHORT TITLE.

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

     SEC. 902. FINDINGS; PURPOSE.

       (a) In General.--The Congress finds that--
       (1) section 47107 of title 49, United States Code, 
     prohibits the diversion of certain revenue

[[Page S10775]]

     generated by a public airport as a condition of receiving a 
     project grant;
       (2) a grant recipient that uses airport revenue for 
     purposes that are not airport related in a manner 
     inconsistent with chapter 471 of title 49, United States 
     Code, illegally diverts airport revenues;
       (3) any diversion of airport revenues in violation of the 
     condition referred to in paragraph (1) undermines the 
     interest of the United States in promoting a strong national 
     air transportation system that is responsive to the needs of 
     airport users;
       (4) the Secretary and the Administrator have not enforced 
     airport revenue diversion rules adequately and must have 
     additional regulatory tools to increase enforcement efforts; 
     and
       (5) sponsors who have been found to have illegally diverted 
     airport revenues--
       (A) have not reimbursed or made restitution to airports in 
     a timely manner; and
       (B) must be encouraged to do so.
       (b) Purpose.--The purpose of this title is to ensure that 
     airport users are not burdened with hidden taxation for 
     unrelated municipal services and activities by--
       (1) eliminating the ability of any State or political 
     subdivision thereof that is a recipient of a project grant to 
     divert airport revenues for purposes that are not related to 
     an airport, in violation of section 47107 of title 49, United 
     States Code;
       (2) imposing financial reporting requirements that are 
     designed to identify instances of illegal diversions referred 
     to in paragraph (1);
       (3) establishing a statute of limitations for airport 
     revenue diversion actions;
       (4) clarifying limitations on revenue diversion that are 
     permitted under chapter 471 of title 49, United States Code; 
     and
       (5) establishing clear penalties and enforcement mechanisms 
     for identifying and prosecuting airport revenue diversion.

     SEC. 903. DEFINITIONS.

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

     SEC. 904. RESTRICTION ON USE OF AIRPORT REVENUES.

       (a) In General.--Subchapter I of chapter 471, as amended by 
     section 201(a) of this Act, is further amended by adding at 
     the end of subchapter I the following new section:

     ``Sec. 47133. Restriction on use of revenues

       ``(a) Prohibition.--Local taxes on aviation fuel (except 
     taxes in effect on December 30, 1987) or the revenues 
     generated by an airport that is the subject of Federal 
     assistance may not be expended for any purpose other than the 
     capital or operating costs of--
       ``(1) the airport;
       ``(2) the local airport system; or
       ``(3) any other local facility that is owned or operated by 
     the person or entity that owns or operates the airport that 
     is directly and substantially related to the air 
     transportation of passengers or property.
       ``(b) Exceptions.--Subsection (a) shall not apply if a 
     provision enacted not later than September 2, 1982, in a law 
     controlling financing by the airport owner or operator, or a 
     covenant or assurance in a debt obligation issued not later 
     than September 2, 1982, by the owner or operator, provides 
     that the revenues, including local taxes on aviation fuel at 
     public airports, from any of the facilities of the owner or 
     operator, including the airport, be used to support not only 
     the airport but also the general debt obligations or other 
     facilities of the owner or operator.
       ``(c) Rule of Construction.--Nothing in this section may be 
     construed to prevent the use of a State tax on aviation fuel 
     to support a State aviation program or the use of airport 
     revenue on or off the airport for a noise mitigation 
     purpose.''.
       (b) Conforming Amendment.--The chapter analysis for 
     subchapter I of chapter 471 is amended by adding at the end 
     the following new item:

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

     SEC. 905. REGULATIONS; AUDITS AND ACCOUNTABILITY.

       (a) In General.--Section 47107 is amended by adding at the 
     end the following new subsections:
       ``(m) Audit Certification.--
       ``(1) In general.--The Secretary of Transportation 
     (hereafter in this section referred to as the `Secretary'), 
     acting through the Administrator of the Federal Aviation 
     Administration (hereafter in this section referred to as the 
     `Administrator'), shall promulgate regulations that require a 
     recipient of a project grant (or any other recipient of 
     Federal financial assistance that is provided for an airport) 
     to include as part of an annual audit conducted under 
     sections 7501 through 7505 of title 31, a review and opinion 
     of the review concerning the funding activities with respect 
     to an airport that is the subject of the project grant (or 
     other Federal financial assistance) and the sponsors, owners, 
     or operators (or other recipients) involved.
       ``(2) Content of review.--A review conducted under 
     paragraph (1) shall provide reasonable assurances that funds 
     paid or transferred to sponsors are paid or transferred in a 
     manner consistent with the applicable requirements of this 
     chapter and any other applicable provision of law (including 
     regulations promulgated by the Secretary or the 
     Administrator).
       ``(3) Requirements for audit report.--The report submitted 
     to the Secretary under this subsection shall include a 
     specific determination and opinion regarding the 
     appropriateness of the disposition of airport funds paid or 
     transferred to a sponsor.
       ``(n) Recovery of Illegally Diverted Funds.--
       ``(1) In general.--Not later than 180 days after the 
     issuance of an audit or any other report that identifies an 
     illegal diversion of airport revenues (as determined under 
     subsections (b) and (l) and section 47133), the Secretary, 
     acting through the Administrator, shall--
       ``(A) review the audit or report;
       ``(B) perform appropriate factfinding; and
       ``(C) conduct a hearing and render a final determination 
     concerning whether the illegal diversion of airport revenues 
     asserted in the audit or report occurred.
       ``(2) Notification.--Upon making such a finding, the 
     Secretary, acting through the Administrator, shall provide 
     written notification to the sponsor and the airport of--
       ``(A) the finding; and
       ``(B) the obligations of the sponsor to reimburse the 
     airport involved under this paragraph.
       ``(3) Administrative action.--The Secretary may withhold 
     any amount from funds that would otherwise be made available 
     to the sponsor, including funds that would otherwise be made 
     available to a State, municipality, or political subdivision 
     thereof (including any multimodal transportation agency or 
     transit authority of which the sponsor is a member entity) as 
     part of an apportionment or grant made available pursuant to 
     this title, if the sponsor--
       ``(A) receives notification that the sponsor is required to 
     reimburse an airport; and
       ``(B) has had an opportunity to reimburse the airport, but 
     has failed to do so.
       ``(4) Civil action.--If a sponsor fails to pay an amount 
     specified under paragraph (3) during the 180-day period 
     beginning on the date of notification and the Secretary is 
     unable to withhold a sufficient amount under paragraph (3), 
     the Secretary, acting through the Administrator, may initiate 
     a civil action under which the sponsor shall be liable for 
     civil penalty in an amount equal to the illegal diversion in 
     question plus interest (as determined under subsection (o)).
       ``(5) Disposition of penalties.--
       ``(A) Amounts withheld.--The Secretary or the Administrator 
     shall transfer any amounts withheld under paragraph (3) to 
     the Airport and Airway Trust Fund.
       ``(B) Civil penalties.--With respect to any amount 
     collected by a court in a civil action under paragraph (4), 
     the court shall cause to be transferred to the Airport and 
     Airway Trust Fund any amount collected as a civil penalty 
     under paragraph (4).
       ``(6) Reimbursement.--The Secretary, acting through the 
     Administrator, shall, as soon as practicable after any amount 
     is collected from a sponsor under paragraph (4), cause to be 
     transferred from the Airport and Airway Trust Fund to an 
     airport affected by a diversion that is the subject of a 
     civil action under paragraph (4), reimbursement in an amount 
     equal to the amount that has been collected from the sponsor 
     under paragraph (4) (including any amount of interest 
     calculated under subsection (o)).
       ``(7) Statute of limitations.--No person may bring an 
     action for the recovery of funds illegally diverted in 
     violation of this section (as determined under subsections 
     (b) and (l)) or section 47133 after the date that is 6 years 
     after the date on which the diversion occurred.
       ``(o) Interest.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     Secretary, acting through the Administrator, shall charge a 
     minimum annual rate of interest on the amount of any illegal 
     diversion of revenues referred to in subsection (n) in an 
     amount equal to the average investment interest rate for tax 
     and loan accounts of the Department of the Treasury (as 
     determined by the Secretary of the Treasury) for the 
     applicable calendar year, rounded to the nearest whole 
     percentage point.
       ``(2) Adjustment of interest rates.--If, with respect to a 
     calendar quarter, the average investment interest rate for 
     tax and loan accounts of the Department of the Treasury 
     exceeds the average investment interest rate for the 
     immediately preceding calendar quarter, rounded to the 
     nearest whole percentage point, the Secretary of the Treasury 
     may adjust the interest rate charged under this subsection in 
     a manner that reflects that change.
       ``(3) Accrual.--Interest assessed under subsection (n) 
     shall accrue from the date of the actual illegal diversion of 
     revenues referred to in subsection (n).
       ``(4) Determination of applicable rate.--The applicable 
     rate of interest charged under paragraph (1) shall--
       ``(A) be the rate in effect on the date on which interest 
     begins to accrue under paragraph (3); and
       ``(B) remain at a rate fixed under subparagraph (A) during 
     the duration of the indebtedness.
       ``(p) Payment by Airport to Sponsor.--If, in the course of 
     an audit or other review conducted under this section, the 
     Secretary or the Administrator determines that an airport 
     owes a sponsor funds as a result of activities conducted by 
     the sponsor or expenditures by the sponsor for the benefit of 
     the airport, interest on that amount shall be determined in 
     the same manner as provided in paragraphs (1) through (4) of 
     subsection (o), except that the amount of any interest 
     assessed under this subsection shall be determined from the 
     date on which the Secretary or the Administrator makes that 
     determination.''.

[[Page S10776]]

       (b) Revision of Policies and Procedures; Deadlines.--
       (1) In general.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary, acting through the 
     Administrator, shall revise the policies and procedures 
     established under section 47107(l) of title 49, United States 
     Code, to take into account the amendments made to that 
     section by this title.
       (2) Statute of limitations.--Section 47107(l) is amended by 
     adding at the end the following new paragraph:
       ``(5) Statute of limitations.--In addition to the statute 
     of limitations specified in subsection (n)(7), with respect 
     to project grants made under this chapter--
       ``(A) any request by a sponsor to any airport for 
     additional payments for services conducted off of the airport 
     or for reimbursement for capital contributions or operating 
     expenses shall be filed not later than 6 years after the date 
     on which the expense is incurred; and
       ``(B) any amount of airport funds that are used to make a 
     payment or reimbursement as described in subparagraph (A) 
     after the date specified in that subparagraph shall be 
     considered to be an illegal diversion of airport revenues 
     that is subject to subsection (n).''.

     SEC. 906. CONFORMING AMENDMENTS TO THE INTERNAL REVENUE CODE 
                   OF 1986.

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

     SEC. 1001. EXPENDITURES FROM AIRPORT AND AIRWAY TRUST FUND.

       Section 9502(d)(1) of the Internal Revenue Code of 1986 
     (relating to expenditures from Airport and Airway Trust Fund) 
     is amended by--
       (1) striking ``1996'' and inserting ``1997''; and
       (2) inserting ``or the Federal Aviation Reauthorization Act 
     of 1996'' after ``Administration Authorization Act of 1994''.
  Mr. LOTT. I move to reconsider the vote.
  Mrs. FEINSTEIN. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. LOTT. Was that motion to reconsider laid on the table?
  The PRESIDING OFFICER. It was.
  Mr. LOTT addressed the Chair.
  The PRESIDING OFFICER. The distinguished Senate majority leader.
  Mr. LOTT. Thank you, Madam President. I ask unanimous consent that 
the Senate insist on its amendments to H.R. 3539, that the Senate 
request a conference with the House on the disagreeing votes, and the 
Chair be authorized to appoint conferees.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  

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