Text: H.R.5466 — 102nd Congress (1991-1992)All Information (Except Text)

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Union Calendar No. 415
102d CONGRESS
2d Session
H. R. 5466
[Report No. 102-724]
A BILL
To amend the Federal Aviation Act of 1958 to enhance competition among air
carriers by prohibiting an air carrier who operates a computer reservation
system from discriminating against other air carriers participating in
the system and among travel agents which subscribe to the system, and for
other purposes.
July 27, 1992
Reported with an amendment, committed to the Committee of the Whole House
on the State of the Union, and ordered to be printed
HR 5466 RH
Union Calendar No. 415
102d CONGRESS
2d Session
 H. R. 5466
[Report No. 102-724]
To amend the Federal Aviation Act of 1958 to enhance competition among air
carriers by prohibiting an air carrier who operates a computer reservation
system from discriminating against other air carriers participating in
the system and among travel agents which subscribe to the system, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
June 23, 1992
Mr. OBERSTAR (for himself, Mr. HAMMERSCHMIDT, Mr. SHUSTER, and Mr. CLINGER)
introduced the following bill; which was referred to the Committee on Public
Works and Transportation
July 27, 1992
Additional sponsors: Mr. ABERCROMBIE, Mr. JONTZ, Mr. DAVIS, Mr. MINETA,
Mr. GINGRICH, Mr. VANDER JAGT, Ms. HORN, Mr. MCCLOSKEY, and Ms. SNOWE
July 27, 1992
Reported with an amendment, committed to the Committee of the Whole House
on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on June 23, 1992]
A BILL
To amend the Federal Aviation Act of 1958 to enhance competition among air
carriers by prohibiting an air carrier who operates a computer reservation
system from discriminating against other air carriers participating in
the system and among travel agents which subscribe to the system, and for
other purposes.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Airline Competition Enhancement Act of 1992'.
SEC. 2. COMPUTER RESERVATION SYSTEMS.
  (a) IN GENERAL- Title IV of the Federal Aviation Act of 1958 (49
  U.S.C. App. 1371-1389) is further amended by adding at the end the following
  new section:
`SEC. 420. COMPUTER RESERVATIONS SYSTEMS.
  `(a) PROHIBITIONS AGAINST VENDOR DISCRIMINATION-
  `(1) IN GENERAL- No vendor, in the operation of its computer reservation
  system, may unjustly discriminate among participants in such system. For
  purposes of this subsection, unjust discrimination shall include, but
  not be limited to, practices prohibited by this subsection. A prohibition
  of a practice for which an effective date is specified in paragraph (2)
  shall take effect on such date.
  `(2) SPECIFIED PROHIBITED CRS OPERATIONAL PRACTICES- No vendor, in the
  operation of its computer reservation system, may--
  `(A)(i) make available to subscribers an integrated display in which
  information is ordered or emphasized based upon factors relating to air
  carrier identity; or
  `(ii) supply information from its computer reservations system to any
  person creating or attempting to create such an integrated display if the
  vendor knows or has reason to know that such person intends to create or
  attempt to create such an integrated display; except that the prohibition
  contained in this clause shall not apply to the extent that the vendor is
  supplying the information to a subscriber creating, in accordance with the
  conditions of the exception contained in subsection (c)(1), an integrated
  display using information from the system;
  `(B) make available, after September 30, 1994, to a subscriber any subscriber
  transaction capability which is more functional, timely, complete, accurate,
  reliable, secure, or efficient, is easier for the subscriber to use or
  access, or provides to the subscriber a different level of confirmation
  of transactions, with respect to one participant than with respect to any
  other participant; except to the extent that the vendor is offering the
  other participant the opportunity to participate in such capability at
  the same price and terms as other participants and the participant has
  not accepted such offer;
  `(C) make available, after September 30, 1994, to a participant any
  participant transaction capability which is more functional, timely,
  complete, accurate, reliable, secure, or efficient with respect to one
  participant than with respect to any other participant; except to the
  extent that the vendor is offering the other participant the opportunity
  to participate in such capability at the same price and terms as other
  participants and the participant has not accepted such offer;
  `(D) charge any separate participant fee for, or require compliance with any
  terms or conditions relating to, the provision of any computer reservation
  system feature, function, or service which the vendor offers as a separate
  option to the participant for the purpose of complying with the requirements
  of this subsection, unless such fee, terms, or conditions are reasonable; or
  `(E) directly or indirectly prohibit a subscriber from obtaining or using
  any other computer reservation system.
  `(3) PROHIBITION AGAINST INDUCING DISCRIMINATION- No vendor or air carrier
  shall require, or provide any incentives to induce, any subscriber to use
  information from a computer reservation system to create an integrated
  display in which information is ordered or emphasized based upon factors
  relating to air carrier identity.
  `(4) USE OF THIRD-PARTY HARDWARE, SOFTWARE, AND DATA BASES-
  `(A) IN GENERAL- Except on grounds of demonstrated technological
  incompatibility, no vendor may prohibit or unreasonably restrict, directly
  or indirectly--
  `(i) the interconnection to its computer reservation system equipment of
  computer hardware or software supplied by a person other than such vendor; or
  `(ii) the use by a subscriber, to access directly any other computer
  reservation system or data base, of hardware and communications lines
  supplied by any other vendor.
  `(B) SPECIFIED PROHIBITIONS- The practices prohibited by subparagraph (A)
  include, but are not limited to, the following:
  `(i) The imposition of fees in excess of reasonable levels to certify or
  interconnect third-party equipment or to use equipment supplied by any
  other vendor to access any other computer reservation system or data base.
  `(ii) Undue delays or redundant or unnecessary testing before certifying
  or interconnecting such equipment or access.
  `(iii) The imposition of requirements that subscribers use the vendor's
  computer reservation system for any minimum number or percentage of the
  subscriber's bookings.
  `(iv) Refusals to provide any services, compensation, or other benefits
  normally provided subscribers on account of the subscriber's using
  third-party equipment or the subscriber's using the same equipment for
  access to both the vendor's computer reservations system and other computer
  reservation systems and data bases.
  `(v) The termination of a subscriber contract because of the subscriber's
  use of third-party equipment or the use of the same equipment for access to
  the vendor's computer reservations system and any other computer reservation
  systems or data bases.
  `(5) EXTENSION OF CONTRACT AS CONDITION TO PROVIDING ADDITIONAL SYSTEM
  COMPONENTS- No vendor may require, as a condition for providing to a
  subscriber additional computer reservation system components (including
  software and enhancements), that the term of the subscriber contract for
  previously provided system components be extended.
  `(6) USE OF SYSTEM IN SALE OF AIR TRANSPORTATION SERVICES- No vendor may
  require use of its computer reservation system by the subscriber in any
  sale by the subscriber of air transportation services of the vendor.
  `(7) USE OF SYSTEM AS CONDITION TO COMPENSATION FOR SALE OF SERVICES-
  No vendor may require that a subscriber use or subscribe to its computer
  reservation system as a condition to the receipt of any compensation for
  the sale of air transportation services by the subscriber.
  `(8) CONDITIONAL PRICES- No vendor may charge prices to subscribers
  conditioned in whole or in part on the identity of air carriers whose air
  transportation services are sold by the subscriber.
  `(b) SUBSCRIBER CONTRACT RESTRAINTS-
  `(1) TERM OF CONTRACT-
  `(A) GENERAL RULE- Except as provided in subparagraph (B), no subscriber
  contract provision shall be enforceable in law or equity after the 180th
  day following the date of the enactment of this section to the extent that
  such provision provides for the term of the contract to be more than 3 years.
  `(B) GRANDFATHER OF CERTAIN EXISTING CONTRACTS- This paragraph shall not
  apply to a contract--
  `(i) which is in effect on the date of the enactment of this section,
  `(ii) which is for a term of not more than 5 years, and
  `(iii) with respect to which all parties to the contract have agreed, in
  writing, after such date of enactment and before the 180th day following
  such date of enactment, that the contract will be enforceable, subject to
  other paragraphs of this subsection, until the last day of its term.
  `(2) OTHER PROVISIONS- No subscriber contract provision shall be enforceable
  in law or equity to the extent that such provision--
  `(A) forms a basis for a claim of actual or liquidated damages by the
  vendor in the event of cancellation of the contract, except as follows:
  `(i) damages related to the vendor's actual cost of removing its equipment
  from the subscriber's premises;
  `(ii) the unamortized share of the vendor's actual cost of installing such
  equipment in the subscriber's premises exclusive of any element of capital
  investment in such equipment; and
  `(iii) other amounts owed to the vendor by the subscriber during the
  unexpired term of the contract, but in no event including amounts which
  are in the nature of a penalty for cancellation or which otherwise become
  due upon cancellation;
  `(B) extends, or provides for the extension of, the contract beyond its
  stated date of termination, whether because of the addition or deletion
  of equipment or because of some other event;
  `(C) provides an expiration date later than the earliest expiration date
  of any other contract for computer reservations services or equipment
  between the same subscriber and vendor;
  `(D) directly or indirectly requires that the subscriber use the vendor's
  computer reservations system for a minimum volume of transactions, whether
  measured as an absolute number, a percentage of total transactions of
  any kind, or otherwise (including making failure to comply with such
  a requirement a breach or violation of the contract or a ground for
  termination of the contract); and
  `(E) directly or indirectly requires the subscriber to use a minimum number
  or ratio of system components based upon or related to the number of system
  components leased from another vendor (including making failure to comply
  with such a requirement a breach or violation of the contract or a ground
  for termination of the contract).
  `(c) PROHIBITION OF SUBSCRIBER MODIFICATION OF INFORMATION- No subscriber
  may use computer software or hardware to modify information in a computer
  reservation system or derived from a computer reservation system in such
  a way as to produce--
  `(1) integrated displays of such information in which information is
  ordered or emphasized based on factors relating to air carrier identity,
  except that the subscriber may use the software or hardware to create such
  displays of air transportation services--
  `(A) if, before such use, the displays have been requested by a customer
  of the subscriber in writing;
  `(B) if the request is kept on file by the subscriber until there has been
  a period of at least 2 years in which the customer has not purchased any
  services from the subscriber; and
  `(C) if the software or hardware is used only with respect to such
  customer; or
  `(2) displays of such information which provide subscriber transaction
  capability which violates subsection (a)(2)(B) or participant transaction
  capability which violates subsection (a)(2)(C).
  `(d) REPORTING-
  `(1) QUARTERLY REPORTS- Not later than the last day of the 1st calendar
  quarter following the date of the enactment of this section and of each
  calendar quarter following such 1st calendar quarter and ending on or
  before December 31, 1994, each vendor shall submit to the Secretary a
  report describing the manner in which the vendor proposes to achieve and
  is achieving compliance with subsections (a)(2)(A), (a)(2)(B), (a)(2)(C),
  and (a)(2)(D).
  `(2) REPORT OF SECRETARY- On or before July 31, 1993, the Secretary shall
  transmit to the Committee on Public Works and Transportation of the House of
  Representatives and the Committee on Commerce, Science, and Transportation
  of the Senate a report, based on the reports filed by vendors pursuant to
  paragraph (1) of this subsection--
  `(A) which describes the progress which each vendor has made in achieving
  compliance with subsections (a)(2)(A), (a)(2)(B), (a)(2)(C), and (a)(2)(D);
  `(B) which compares and contrasts the participant transaction capabilities
  and subscriber transaction capabilities, including the protocols of each
  vendor with each participant; and
  `(C) which includes a tentative finding by the Secretary as to whether each
  vendor is making satisfactory progress toward, and is likely to achieve,
  compliance with each of such subsections in accordance with any time limit
  contained in such subsection.
The Secretary shall provide each vendor a copy of the report transmitted
under this paragraph within 30 days after the date of such transmittal.
  `(3) SUPPLEMENTAL VENDOR REPORT- If the report transmitted under paragraph
  (2) includes a finding of the Secretary that a vendor is not making
  satisfactory progress toward, or is not likely to achieve, compliance with
  subsection (a)(2)(A), (a)(2)(B), (a)(2)(C), or (a)(2)(D) in accordance with
  any time limit contained in such subsection, the Secretary shall require the
  vendor to submit to the Secretary a supplemental report describing the manner
  in which the vendor proposes to achieve compliance with such subsection.
  `(4) MAINTENANCE OF RECORDS- Not later than 90 days after the date of the
  enactment of this section, the Secretary shall issue regulations requiring
  each vendor to maintain such information concerning its computer reservation
  system as the Secretary determines is necessary to enable the Secretary
  to determine whether or not the vendor is making progress toward achieving
  compliance, or is in compliance, with this section. Such regulations shall
  establish the form and substance of the information to be maintained.
  `(e) MONITORING OF PARTICIPANT FEES- Not later than March 31, 1993, and
  each March 31 thereafter, the Secretary shall transmit, to the Committee
  on Public Works and Transportation of the House of Representatives and the
  Committee on Commerce, Science, and Transportation of the Senate, a report
  on the participant fees charged by vendors during the preceding calendar
  year, including whether such fees represent an increase or decrease over
  the fees charged previously and whether, in the opinion of the Secretary,
  such fees are reasonable.
  `(f) SPECIAL RULES FOR CERTAIN VIOLATIONS-
  `(1) APPLICABILITY- The procedures and time limits set forth in this
  subsection shall apply to any complaint filed with the Secretary alleging
  a violation of this section (including any regulation issued to carry out
  this section or otherwise relating to computer reservation systems).
  `(2) DEADLINE FOR DECISION WITH RESPECT TO A COMPLAINT- Not later than
  the 90th day following the date of the filing of a complaint to which this
  subsection applies, the Secretary shall issue--
  `(A) on the basis of the information filed with respect to the complaint
  and any other information available to the Secretary, an order which
  determines that there is not a material issue of fact with respect to the
  complaint and--
  `(i) which finds that the violation has not occurred and dismisses the
  complaint; or
  `(ii) which finds, after compliance with the procedures of section 1002(c)
  of this Act, that the violation has occurred and sets out the remedies and
  penalties that the Secretary determines are appropriate for the violation
  and the information forming the basis for such finding;
  `(B) a consent order which sets out the remedies and penalties which the
  Secretary determines are appropriate and to which the alleged violator
  has agreed; or
  `(C) for a determination of whether or not the violation has occurred and
  appropriate remedies and penalties for the violation if the violation has
  occurred, an order instituting a proceeding which includes an oral hearing
  on the record before an administrative law judge in accordance with section
  554 of title 5, United States Code.
  `(3) PARTIES TO AN ALJ PROCEEDING- If the Secretary issues an order
  instituting a proceeding before an administrative law judge under this
  subsection, both the Department of Transportation and the person filing
  the complaint shall be parties to the proceeding if they so elect, and the
  administrative law judge may designate additional parties to the proceeding.
  `(4) POWER OF ALJ TO COMPEL PRODUCTION OF DOCUMENTS- An administrative
  law judge to whom a complaint under this subsection is assigned may compel
  the production of documents and other information necessary to determine
  whether the violation has or has not occurred.
  `(5) DEADLINE FOR ALJ DECISION- Not later than the 270th day following
  the date on which the Secretary issues an order instituting a proceeding
  before an administrative law judge under this subsection, the judge shall
  issue an order--
  `(A) which finds that no violation has occurred and dismisses the
  complaint; or
  `(B) which finds that a violation has occurred and sets out the remedies
  and penalties that the administrative law judge determines are appropriate
  for such violation.
  `(6) DEADLINE FOR FINAL ORDER- Not later than the 90th day following
  the date of issuance an order by an administrative law judge under this
  subsection, the Secretary shall issue a final order with respect to the
  complaint. If the Secretary does not issue the final order by the last day
  of such 90-day period, the order of the administrative law judge shall be
  deemed to be a final order of the Secretary.
  `(g) TREATMENT OF CERTAIN REDUCED CRS SERVICES- If any computer reservation
  system service being provided to a participant in such system for a
  participant fee is reduced without a corresponding reduction in the
  participant fee, the participant fee shall be treated, for purposes of
  this section, as being increased by the vendor.
  `(h) REGULATIONS-
  `(1) GENERAL AUTHORITY- The Secretary may issue regulations to carry out
  the objectives of this section and such other regulations relating to
  computer reservation systems as the Secretary determines appropriate. Such
  regulations shall not be inconsistent with the provisions of this section.
  `(2) ENFORCEABILITY- The enforceability of this section shall not be
  affected by any delay or failure of the Secretary to issue regulations to
  carry out the objectives of this section.
  `(i) DEFINITIONS- For purposes of this section, the following definitions
  apply:
  `(1) COMPUTER RESERVATIONS SYSTEM- The term `computer reservations system'
  means--
  `(A) a computer system which is offered to subscribers for use in the United
  States and contains information on the schedules, fares, rules, or seat
  availability of 2 or more separately identified air carriers and provides
  subscribers with the ability to make reservations and to issue tickets; and
  `(B) a computer system which was subject to the provisions of part 255
  of title 14 of the Code of Federal Regulations (relating to computer
  reservation systems) on June 1, 1991.
  `(2) COMPUTER SYSTEM- The term `computer system' means a unit of one or
  more computers, and associated software, peripherals, terminals, and means
  of information transfer, capable of performing information processing and
  transfer functions.
  `(3) INTERNAL RESERVATION SYSTEM- The term `internal reservation system'
  means a computer system which contains information on airline schedules,
  fares, rules, or seat availability and is used by an air carrier to respond
  to inquiries made directly to the carrier by members of the public concerning
  such information and to make reservations arising from such inquiries.
  `(4) INTEGRATED DISPLAY- The term `integrated display' means a computerized
  display of information which relates to air carrier schedules, fares,
  rules, or availability and is designed to include information pertaining
  to more than 1 separately identified air carrier. Such term excludes the
  display of data from the internal reservations system of an individual air
  carrier when provided in response to a request by a ticket agent relating
  to a specific transaction.
  `(5) PARTICIPANT- The term `participant', as used with respect to a computer
  reservations system, means an air carrier which has its flight schedules,
  fares, or seat availability displayed through such system.
  `(6) PARTICIPANT FEE- The term `participant fee' means any fee, charge,
  penalty, or thing of value contractually required to be furnished to
  a vendor by a participant for display of the flight schedules, fares,
  or seat availability of the participant through the computer reservation
  system of the vendor or for other computer reservation system services
  provided to the participant.
  `(7) PARTICIPANT TRANSACTION CAPABILITY- The term `participant transaction
  capability' means a service, product, function, or facility with respect
  to any computer reservation system which is provided by a vendor to any
  participant and which is capable of benefiting the air transportation
  business of such participant, including the quality, reliability, and
  security of communications provided by the vendor linking such vendor's
  computer reservation system to the computer system or data bases of any
  participant, the loading into the system of information on schedules,
  fares, rules, or seat availability, the booking or assignment of seats,
  the issuance of tickets or boarding passes, the retrieval of data from the
  system, or a means of determining the timeliness with which a participant
  will receive payment for air transportation sold through the system.
  `(8) PROTOCOL- The term `protocol' means a set of rules or formats which
  govern the information transfer between and among computer reservation
  systems, participants, and subscribers.
  `(9) SUBSCRIBER- The term `subscriber' means a ticket agent which uses
  a computer reservation system in the sale and issuance of tickets for
  air transportation.
  `(10) SUBSCRIBER CONTRACT- The term `subscriber contract' means an agreement,
  and any amendment thereto, between a ticket agent and a vendor for the
  furnishing of computer reservations services to such subscriber.
  `(11) SUBSCRIBER TRANSACTION CAPABILITY- The term `subscriber transaction
  capability' means any capability offered through a computer reservation
  system to a subscriber with respect to air transportation, including the
  capability of a ticket agent through a computer reservations system to view
  information on airline schedules, fares, rules, and seat availability or
  to book space, assign seats, or issue tickets or boarding passes for air
  transportation to be provided by air carriers.
  `(12) VENDOR- The term `vendor' means any person who owns, controls,
  or operates a computer reservations system.'.
  (b) CONFORMING AMENDMENT TO TABLE OF CONTENTS- The table of contents
  contained in the first section of the Federal Aviation Act of 1958 is
  amended by adding at the end of the matter relating to title IV of such
  Act the following:
`Sec. 420. Computer reservations systems.
`(a) Prohibitions against vendor discrimination.
`(b) Subscriber contract restraints.
`(c) Prohibition of subscriber modification of information.
`(d) Reporting.
`(e) Monitoring of participant fees.
`(f) Special rules for certain nonfee violations.
`(g) Treatment of certain reduced CRS services.
`(h) Definitions.'.
SEC. 3. PROTECTION OF SMALL COMMUNITY AIRLINE PASSENGERS.
  (a) ACCESS TO HIGH DENSITY AIRPORTS- Section 419(b) of the Federal Aviation
  Act of 1958 (49 U.S.C. App. 1389(b)) is amended by adding at the end the
  following new paragraph:
  `(10) ACCESS TO HIGH DENSITY AIRPORTS-
  `(A) NONCONSIDERATION OF SLOT AVAILABILITY- In determining what is basic
  essential air service and in selecting an air carrier to provide such
  service, the Secretary shall not give consideration to whether slots at
  a high density airport are available for providing such service.
  `(B) MAKING SLOTS AVAILABLE- If basic essential air service is to be
  provided to and from a high density airport, the Secretary shall ensure
  that a sufficient number of slots at such airport are available to the
  air carrier providing or selected to provide such service. If necessary to
  carry out the objectives of this subsection, the Secretary shall take such
  action as may be necessary to have such slots transferred or otherwise
  made available to the air carrier; except that the Secretary shall not
  be required to make slots available at O'Hare International Airport in
  Chicago, Illinois, if the number of slots available for basic essential
  air service to and from such airport is at least 132 slots.'.
  (b) TRANSFERS OF SLOTS AT HIGH DENSITY AIRPORTS- Section 419(b)(7) of such
  Act (49 U.S.C. App. 1389(b)(7)) is amended--
  (1) by striking `TRANSFER OF OPERATIONAL AUTHORITY AT CERTAIN' and inserting
  `TRANSFERS OF SLOTS AT';
  (2) by striking `an airport at which the Administrator limits the number
  of instrument flight rule takeoffs and landings of aircraft' and inserting
  `a high density airport';
  (3) by striking `operational authority' and inserting `slots';
  (4) by striking `has to conduct a landing or takeoff' and inserting
  `have'; and
  (5) by striking `such authority' the first place it appears and inserting
  `such slots';
  (6) by striking `such authority is' and inserting `such slots are'; and
  (7) by inserting `basic essential' after `used to provide'.
  (c) DEFINITIONS- Section 419(k) of such Act (49 U.S.C. App. 1389(k))
  is amended by adding at the end the following new paragraphs:
  `(6) HIGH DENSITY AIRPORT- The term `high density airport' means an airport
  at which the Administrator limits the number of instrument flight rule
  takeoffs and landings of aircraft.
  `(7) SLOT- The term `slot' means a reservation for an instrument flight rule
  takeoff or landing by an air carrier of an aircraft in air transportation.'.
SEC. 4. LIMITATION ON STATUTORY CONSTRUCTION WITH RESPECT TO EMPLOYMENT
INVESTIGATIONS.
  (a) IN GENERAL- Section 316 of the Federal Aviation Act of 1958 (49
  U.S.C. App. 1357) is amended--
  (1) by redesignating the second subsection (g), relating to air carrier
  and airport security personnel, and subsections (h), (i), (j), and (k)
  as subsections (h), (i), (j), (k), and (l), respectively; and
  (2) in subsection (h)(1), as so redesignated, by adding at the end thereof
  the following new subparagraph:
  `(D) LIMITATION ON STATUTORY CONSTRUCTION- Nothing in the section shall
  require the Administrator to issue regulations requiring that employment
  investigations under this section include criminal history record checks
  if the Administrator determines that such record checks are not necessary
  to ensure air transportation security.'.
  (b) CONFORMING AMENDMENTS TO TABLE OF CONTENTS- The portion of the table
  of contents contained in the first section of such Act under the side heading
`Sec. 316. Air transportation security.'.
is amended--
  (1) by redesignating items (g), (h), (i), (j), and (k) as items (h), (i),
  (j), (k), and (l), respectively; and
  (2) by inserting after the item relating to subsection (f) the following:
`(g) Airport tenants security programs.'.
SEC. 5. RULEMAKING ON RANDOM TESTING FOR PROHIBITED DRUGS.
  Not later than 120 days after the date of the enactment of this Act,
  the Secretary of Transportation shall initiate a rulemaking proceeding
  to consider whether there should be a reduction in the annualized rate
  of random testing for prohibited drugs now required by the Secretary
  for personnel engaged in aviation activities. A final decision in such
  rulemaking proceeding shall be issued not later than 1 year after such
  date of enactment.
SEC. 6. CLARIFICATION OF PFC APPLICABILITY.
  Section 1113(e)(1) of the Federal Aviation Act of 1958 (49
  U.S.C. App. 1513(e)(1)) is amended by adding at the end thereof the following
  new sentence: `This subsection does not authorize the Secretary to grant
  a public agency authority to impose a fee for a passenger enplaning at
  an airport if the passenger did not pay for the air transportation which
  resulted in such enplanement, including any case in which the passenger
  obtained the ticket for the air transportation with a frequent flier award
  coupon without monetary payment.'.
SEC. 7. CANCELLATIONS AND ON-TIME PERFORMANCE BY COMMUTER AIR CARRIERS.
  (a) AMENDMENT OF REGULATIONS- Not later than 120 days after the date of the
  enactment of this Act, the Secretary of Transportation shall amend part
  234 of title 14 of the Code of Federal Regulations to require commuter
  air carriers to comply with the provisions governing on-time performance
  in such part.
  (b) REPORTS- Not later than the 30th day following the last day of each
  calendar month beginning after the 120th day following the date of the
  enactment of this Act, the Secretary of Transportation shall publish a
  report containing the percentage of flights of each commuter air carrier
  which were canceled during such calendar month.
  (c) DEFINITION- In this section, the term `commuter air carrier' means an
  air carrier (as defined by section 101 of the Federal Aviation Act of 1958)
  that provides air service in accordance with a published schedule and that
  primarily operates aircraft designed to have a maximum passenger seating
  capacity of 60 seats or less.
SEC. 8. DECLARATION OF POLICY.
  (a) STRENGTHENING OF COMPETITION- Section 102 of the Federal Aviation Act
  of 1958 (49 U.S.C. App. 1302) is amended by adding at the end the following
  new subsection:
  `(c) STRENGTHENING OF COMPETITION- In selecting an air carrier to provide
  foreign air transportation from among competing applicants to provide such
  transportation, the Secretary shall consider the strengthening of competition
  among air carriers operating in the United States in order to prevent undue
  concentration in the air carrier industry, in addition to considering the
  factors specified in subsections (a) and (b) of this section.'.
  (b) CONFORMING AMENDMENT- The portion of the table of contents contained
  in the first section of such Act relating to section 102 is amended by
  adding at the end the following new item:
`(c) Strengthening of competition.'.
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