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104th Congress                                            Rept. 104-475
                        HOUSE OF REPRESENTATIVES

 2d Session                                                      Part 1
_______________________________________________________________________


 
       FEDERAL AVIATION ADMINISTRATION REVITALIZATION ACT OF 1995

_______________________________________________________________________


                 March 7, 1996.--Ordered to be printed

                                _______


 Mr. Shuster, from the Committee on Transportation and Infrastructure, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 2276]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 2276) to establish the Federal 
Aviation Administration as an independent establishment in the 
executive branch, and for other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Federal Aviation Administration 
Revitalization Act of 1995''.

SEC. 2. AMENDMENT OF TITLE 49, UNITED STATES CODE.

  Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of title 49, United States 
Code.

SEC. 3. ESTABLISHMENT OF FEDERAL AVIATION ADMINISTRATION.

  Subtitle II is amended by adding at the end the following:

             ``CHAPTER 13--FEDERAL AVIATION ADMINISTRATION

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``1301. Definitions.

            ``SUBCHAPTER II--ORGANIZATION AND ADMINISTRATIVE

``1311. Establishment.
``1312. Federal Aviation Board.
``1313. Officers.
``1314. Personnel management program.
``1315. Management Advisory Committee.
``1316. Authority to carry out certain transferred functions, duties, 
and powers.

                      ``SUBCHAPTER III--AUTHORITY

``1331. Functions.
``1332. Regulations.
``1333. Finality of decisions; appeals.
``1334. Procurement program.
``1335. Judicial review of actions in carrying out certain transferred 
duties and powers.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``Sec. 1301. Definitions

  ``In this chapter, the following definitions apply:
          ``(1) Administration.--The term `Administration' means the 
        Federal Aviation Administration established by section 1311.
          ``(2) Aeronautics, air commerce, and air navigation 
        facility.--The terms `aeronautics', `air commerce', and `air 
        navigation facility' have the same meanings given those terms 
        in section 40102(a) of this title.
          ``(3) Airport and airway trust fund.--The term `Airport and 
        Airway Trust Fund' means the Airport and Airway Trust Fund 
        established by section 9502 of the Internal Revenue Code of 
        1986.
          ``(4) Board.--The term `Board' means the Federal Aviation 
        Board established by section 1312.
          ``(5) Chief executive officer.--The term `Chief Executive 
        Officer' means the Chief Executive Officer of the Federal 
        Aviation Administration.

            ``SUBCHAPTER II--ORGANIZATION AND ADMINISTRATIVE

``Sec. 1311. Establishment

  ``There is established in the executive branch as an independent 
establishment the Federal Aviation Administration. The Administration 
shall succeed the Federal Aviation Administration of the Department of 
Transportation in existence on the day before the effective date of 
this section.

``Sec. 1312. Federal Aviation Board

  ``(a) In General.--There is established a Federal Aviation Board 
which shall serve as the head of the Administration.
  ``(b) Functions.--
          ``(1) In general.--The Board shall be responsible for the 
        major policy functions of the Administration, including the 
        following:
                  ``(A) The appointment and removal of the Chief 
                Executive Officer and the approval of other senior 
                officers of the Administration under section 1313.
                  ``(B) The approval and submission to Congress of 
                major contracts under section 1334(d).
                  ``(C) The approval of major regulatory actions under 
                section 1332(b).
                  ``(D) The issuance of letters of intent under section 
                47110(e).
                  ``(E) The approval and submission to Congress of the 
                Administration's plans for personnel management and 
                acquisition management programs under sections 1314 and 
                1334.
                  ``(F) The approval of the agency's annual budget 
                submission.
                  ``(G) Long-range and strategic planning for the 
                Administration.
                  ``(H) The representation of the Administration at 
                public events to the extent practicable.
                  ``(I) Such other significant actions as the Board 
                considers appropriate.
          ``(2) Nondelegable functions.--The Board may not delegate the 
        functions described in subparagraphs (A) through (F) of 
        paragraph (1).
          ``(3) Not subject to entities created by executive order.--
        The Administration shall not submit decisions for the approval 
        of, and shall not be bound by the decisions or recommendations 
        of, any committee, board, or other organization established by 
        Executive order.
  ``(c) Membership.--
          ``(1) Voting members.--The Board shall be composed of 3 
        voting members to be appointed by the President, by and with 
        the advice and consent of the Senate. The initial members of 
        the Board shall be appointed as soon as practicable after the 
        date of the enactment of the Federal Aviation Administration 
        Revitalization Act of 1995.
          ``(2) Non-voting members.--The Secretary of Transportation 
        (or the Secretary's designee) and the Secretary of Defense (or 
        the Secretary's designee) shall serve as non-voting members of 
        the Board.
  ``(d) Qualifications.--
          ``(1) In general.--Members appointed to the Board under 
        subsection (c)(1) shall represent the public interest and shall 
        be selected from individuals who are knowledgeable in aviation. 
        Members of the Board may not--
                  ``(A) have a pecuniary interest in, or own stock in 
                or bonds of, an aeronautical enterprise;
                  ``(B) engage in another business, vocation, or 
                employment; and
                  ``(C) be a member of any organization a substantial 
                part of whose activities are for the purpose of 
                influencing aviation-related legislation.
          ``(2) Definition.--In this subsection, the term `influencing 
        legislation' has the meaning such term has under section 
        4911(d) of the Internal Revenue Code of 1986 (26 U.S.C. 
        4911(d)).
  ``(e) Terms.--
          ``(1) In general.--Subject to paragraphs (2) and (3), each 
        member of the Board appointed under subsection (c)(1) shall be 
        appointed for a term of 7 years.
          ``(2) Terms of initial appointees.--As designated by the 
        President at the time of appointment, of the members first 
        appointed under subsection (c)(1)--
                  ``(A) 1 shall be appointed for a term of 3 years;
                  ``(B) 1 shall be appointed for a term of 5 years; and
                  ``(C) 1 shall be appointed for a term of 7 years.
          ``(3) Vacancies.--Any member appointed under subsection 
        (c)(1) to fill a vacancy occurring before the expiration of the 
        term for which the member's predecessor was appointed shall be 
        appointed only for the remainder of that term. A member may 
        serve after the expiration of that member's term until a 
        successor has taken office.
  ``(f) Removal.--Members of the Board appointed under subsection 
(c)(1) may be removed by the President for inefficiency, neglect of 
duty, or malfeasance in office.
  ``(g) Chairperson.--The Chairperson of the Board shall be appointed 
by the President, by and with the advice and consent of the Senate. At 
the time of such appointment, the President shall establish the term of 
the Chairperson. Such term may not exceed the term of the Chairperson's 
appointment to the Board.
  ``(h) Quorum.--Two members of the Board appointed under subsection 
(c)(1) shall constitute a quorum for carrying out the duties and powers 
of the Board.
  ``(i) Basic Pay.--
          ``(1) Chairperson.--The Chairperson of the Board shall be 
        paid at a rate equal to the rate of basic pay payable for level 
        II of the Executive Schedule.
          ``(2) Other members.--The other voting members of the Board 
        shall be paid at a rate equal to the rate of basic pay payable 
        for level III of the Executive Schedule.

``Sec. 1313. Officers

  ``(a) Chief Executive Officers.--
          ``(1) Appointment.--The Board shall appoint a Chief Executive 
        Officer.
          ``(2) Duties.--The Board shall delegate to the Chief 
        Executive Officer the responsibility for managing the day-to-
        day operation of the Administration, including (except as 
        provided in section 1312(b)) the hiring and firing of 
        employees, acquisition of facilities and equipment, issuance of 
        rules, airworthiness directives, and advisory circulars, 
        preparation of the annual budget submission, the awarding of 
        grants, and such other functions as the Board considers 
        appropriate.
          ``(3) Removal.--The Chief Executive Officer shall serve at 
        the pleasure of the Board; except that the Board shall make 
        every effort to ensure stability and continuity in the 
        leadership of the Administration.
          ``(4) Basic pay.--Subject to section 1314(f), the Chief 
        Executive Officer shall be paid at a rate to be determined by 
        the Board.
  ``(b) Other Officers.--Subject to the approval of the Board, the 
Chief Executive Officer shall appoint other senior officers who shall 
each have such duties as the Chief Executive Officer may prescribe.
  ``(c) Chief Counsel.--Subject to the approval of the Board, the Chief 
Executive Officer shall appoint a Chief Counsel who shall be the chief 
legal officer for all legal matters arising from the activities of the 
Administration.
  ``(d) Inspector General.--There shall be in the Administration an 
Inspector General who shall be appointed in accordance with the 
Inspector General Act of 1978 (5 U.S.C. App.).
  ``(e) Aircraft Noise Ombudsman.--
          ``(1) Establishment.--There shall be in the Administration an 
        Aircraft Noise Ombudsman who shall be appointed by the Board.
          ``(2) Duties and responsibilities.--The Ombudsman shall--
                  ``(A) serve as a liaison with the public on issues 
                regarding aircraft noise; and
                  ``(B) be consulted when the Administration proposes 
                changes in aircraft routes so as to minimize any 
                increases in aircraft noise over populated areas.

``Sec. 1314. Personnel management program

  ``(a) Exemption From Certain Provisions of Title 5, United States 
Code.--
          ``(1) In general.--Except as otherwise provided in this Act, 
        the Administration shall be exempt from parts II and III of 
        title 5.
          ``(2) Effective date.--The exemption provided by paragraph 
        (1) shall not take effect until the expiration of the 180-
        period described in subsection (d)(2).
  ``(b) Development of Personnel Management System.--
          ``(1) In general.--Not later than 180 days after the date of 
        the enactment of the Federal Aviation Administration 
        Revitalization Act of 1995, the Board shall develop a personnel 
        management system for the Administration.
          ``(2) Consultation and negotiation.--In developing the 
        personnel management system, the Board shall negotiate with the 
        exclusive bargaining representatives of employees of the 
        Administration certified under section 7111 of title 5 and 
        other employees of the Administration and shall consult with 
        nongovernmental experts in personnel management systems. The 
        negotiation with the exclusive bargaining representatives shall 
        be completed on or before the 90th day after the date of 
        enactment referred to in paragraph (1).
          ``(3) Mediation.--If the Board does not reach an agreement 
        under paragraph (2) with the exclusive bargaining 
        representatives on any provision of the personnel management 
        system, 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 Board shall include in the 
        plan to be submitted to Congress under subsection (d) the 
        objections of the exclusive bargaining representatives and the 
        reasons for the objections.
          ``(4) Continuation of agreements.--Collective bargaining 
        agreements and labor management relations under chapter 71 of 
        title 5 shall remain in effect for the Administration until 
        amended or modified under the personnel management system.
          ``(5) Goals.--The goal of the personnel management system to 
        be developed by the Board under paragraph (1) shall be to 
        provide, consistent with the requirements of this section, the 
        Administration with the ability--
                  ``(A) to hire and fire employees as in the private 
                sector;
                  ``(B) to promote and pay employees based on merit;
                  ``(C) to provide market-based salaries (designed to 
                attract the best qualified employees) within available 
                resources;
                  ``(D) to provide pay increases and other incentives 
                to staff facilities that are difficult to staff;
                  ``(E) to move personnel to those facilities where 
                they are most needed; and
                  ``(F) to provide an opportunity for collective 
                bargaining and other consultation with employees 
                concerning terms and conditions of employment.
          ``(6) Safeguards.--The personnel management system shall 
        include safeguards to ensure that travel expenses of employees 
        of the Administration (including meal and lodging expenses) are 
        not excessive.
  ``(c) Experts Evaluation.--The arrangements entered into by the Board 
with the experts consulted by the Board under subsection (b) shall 
provide for those experts to evaluate the personnel management system 
developed by the Board and submit to Congress the results of such 
evaluation before the last day of the 180-day period referred to in 
subsection (b)(1).
  ``(d) Notice to Congress.--
          ``(1) In general.--Upon development of the personnel 
        management system under subsection (b), the Board shall submit 
        to Congress a comprehensive plan describing the personnel 
        management system, along with all existing or proposed rules or 
        regulations relevant to the system.
          ``(2) Implementation.--The Board may begin to implement the 
        personnel management system only after the expiration of the 
        180-day period that begins on the date of submission of the 
        plan to Congress under paragraph (1).
  ``(e) Employee Rights and Benefits.--Nothing in this section shall be 
construed as exempting the Administration and employees of the 
Administration from any of the following provisions of title 5:
          ``(1) Section 2302(b)(8) (relating to whistleblower 
        protection) and related enforcement provisions.
          ``(2) Sections 7311(3) and 7311(4) (relating to limitations 
        on the right to strike).
          ``(3) Sections 2302(b)(1) and 7204 (relating to 
        antidiscrimination) and related enforcement provisions and 
        provisions of law referred to in section 2302(b)(1).
          ``(4) Chapter 71 (relating to labor-management relations).
          ``(5) Chapter 73 (relating to suitability, security, and 
        conduct).
          ``(6) Chapter 81 (relating to compensation for work 
        injuries).
          ``(7) Chapter 83 (relating to retirement).
          ``(8) Chapter 84 (relating to the Federal Employees' 
        Retirement System).
          ``(9) Chapter 85 (relating to unemployment compensation).
          ``(10) Chapter 87 (relating to life insurance).
          ``(11) Chapter 89 (relating to health insurance).
  ``(f) Pay Restrictions.--
          ``(1) Maximum rate of pay.--No officer (including the Chief 
        Executive Officer) or employee of the Administration may 
        receive annual pay in excess of the annual rate of basic pay 
        payable for level II of the Executive Schedule unless the Board 
        provides written notification to Congress of such higher rate 
        of pay and 30 days (excluding Saturdays, Sundays, and holidays, 
        and any day on which neither House of Congress is in session 
        because of an adjournment sine die, a recess of more than 3 
        days, or an adjournment of more than 3 days) have elapsed since 
        the date of such notification.
          ``(2) Percentage of employees above level es-1 of senior 
        executive service.--Not more than 0.35 percent of the officers 
        (including members of the Board and the Chief Executive 
        Officer) and employees of the Administration may be paid at a 
        rate which equals or exceeds the rate payable for level ES-1 of 
        the Senior Executive Service.
          ``(3) Raises and bonuses.--No officer (including the Chief 
        Executive Officer) or employee of the Administration who is 
        paid at a rate which exceeds the rate payable for level ES-1 of 
        the Senior Executive Service may receive in a calendar year 
        raises or bonuses (excluding cost-of-living increases and 
        increases that are the results of a promotion) that total more 
        than 15 percent of the annual rate of pay of the officer or 
        employee on the day before the first day of such calendar year.
  ``(g) Contracts Between FAA and Former FAA Employees.--Before the 
Administration may enter into a contract with an individual who has 
been employed by the Administration at any time during the 2-year 
period preceding the expected date of entry into the contract or with a 
corporation, partnership, or other entity in which such a former 
employee is a partner, principal officer, or majority stockholder or 
which is otherwise controlled or predominantly staffed by 1 or more of 
such former employees, the Board must first approve of the entry into 
the contract as being essential to the mission of the Administration.

``Sec. 1315. Management Advisory Committee

  ``(a) Establishment.--There is established an advisory committee 
which shall be known as the Federal Aviation Management Advisory 
Committee (hereinafter in this section referred to as the `Management 
Advisory Committee').
  ``(b) Membership.--The Management Advisory Committee shall consist of 
17 members, who shall be appointed as follows:
          ``(1) 1 member appointed by the Speaker of the House of 
        Representatives;
          ``(2) 1 member appointed by the minority leader of the House 
        of Representatives;
          ``(3) 1 member appointed by the majority leader of the 
        Senate;
          ``(4) 1 member appointed by the minority leader of the 
        Senate;
          ``(5) 13 members appointed by the Board 12 of whom shall 
        represent 1 of the following interests:
                  ``(A) Airline passengers.
                  ``(B) General aviation and sport aviation.
                  ``(C) Business aviation.
                  ``(D) Hub airports.
                  ``(E) Non-hub and general aviation airports.
                  ``(F) Major airlines and national airlines.
                  ``(G) Regional airlines and air taxis.
                  ``(H) Cargo airlines and charter airlines.
                  ``(I) Aircraft manufacturers.
                  ``(J) Airline employees.
                  ``(K) Federal Aviation Administration employees.
                  ``(L) State aviation officials.
  ``(c) Functions.--The Management Advisory Committee shall provide 
advice and counsel to the Administration on issues which affect or are 
affected by the operations of the Administration. The Management 
Advisory Committee shall hold quarterly meetings. The Administration 
shall give the Management Advisory Committee access to internal 
documents (other than proprietary information and documents relating to 
on-going litigation) and personnel of the Administration. The 
Management Advisory Committee shall function as an oversight resource 
for management, policy, spending, and regulatory matters under the 
jurisdiction of the Administration.
  ``(d) Chairman.--The Management Advisory Committee shall elect a 
chairman of the Management Advisory Committee from among its members.
  ``(e) Terms of Members.--
          ``(1) Members appointed by congress.--Members appointed under 
        subsections (b)(1) through (b)(4) shall be appointed for a term 
        of 2 years.
          ``(2) Members appointed by the board.--Members appointed 
        under subsection (b)(5) shall be appointed for a term of 3 
        years.
  ``(f) Travel and Per Diem.--Each member of the Management Advisory 
Committee 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.
  ``(g) Utilization of Personnel From FAA.--The Administration shall 
make available to the Management Advisory Committee such staff, 
information, and administrative services and assistance as may 
reasonably be required to enable the Management Advisory Committee to 
carry out its responsibilities under this section.
  ``(h) Applicability of Federal Advisory Committee Act.--The 
Management Advisory Committee shall be subject to the Federal Advisory 
Committee Act (5 U.S.C. App.); except that section 14(a)(2)(B) of such 
Act (relating to the termination of advisory committees) shall not 
apply to the Committee.

``Sec. 1316. Authority to carry out certain transferred functions, 
                    duties, and powers

  ``Except as otherwise provided in this chapter, in carrying out a 
function, duty, or power transferred under the Federal Aviation 
Administration Revitalization Act of 1995 (including the amendments 
made by such Act), the Administration has the same authority that was 
vested in the department, agency, or instrumentality of the United 
States Government carrying out the function, duty, or power immediately 
before the transfer. An action of the Administration in carrying out 
the function, duty, or power has the same effect as when carried out by 
the department, agency, or instrumentality.

                      ``SUBCHAPTER III--AUTHORITY

``Sec. 1331. Functions

  ``(a) In General.--The functions of the Federal Aviation 
Administration shall be all functions vested in the Board, the Chief 
Executive Officer, or the Federal Aviation Administration by this title 
or by law enacted after the date of the enactment of this chapter. Such 
functions include functions of the Administration, the Board, and the 
Chief Executive Officer under the following provisions of this title:
          ``(1) Section 308(b).
          ``(2) Section 353.
          ``(3) Section 1114(d).
          ``(4) Section 1131(c).
          ``(5) Subsections (c) and (d) of section 1132.
          ``(6) Section 1135.
          ``(7) Section 1153(c).
          ``(8) Subsections (a), (c), and (d) of section 40101.
          ``(9) Section 40102(a)(8).
          ``(10) Section 40103(b).
          ``(11) Section 40104.
          ``(12) Section 40105.
          ``(13) Section 40106(a).
          ``(14) Section 40107.
          ``(15) Section 40108.
          ``(16) Section 40109(b).
          ``(17) Subsections (a) and (b) of section 40110.
          ``(18) Section 40111.
          ``(19) Section 40112.
          ``(20) Section 40113.
          ``(21) Section 40114.
          ``(22) Section 40115.
          ``(23) Section 40117.
          ``(24) Section 40119.
          ``(25) Section 41714.
          ``(26) Chapter 441.
          ``(27) Chapter 443.
          ``(28) Chapter 445.
          ``(29) Chapter 447.
          ``(30) Chapter 449.
          ``(31) Chapter 451.
          ``(32) Chapter 453.
          ``(33) Chapter 461.
          ``(34) Section 46301.
          ``(35) Section 46302.
          ``(36) Section 46303.
          ``(37) Section 46304.
          ``(38) Section 46306.
          ``(39) Section 46308.
          ``(40) Section 46311.
          ``(41) Section 46313.
          ``(42) Section 46315.
          ``(43) Section 46316.
          ``(44) Chapter 465.
          ``(45) Chapter 471.
          ``(46) Chapter 473.
          ``(47) Chapter 475.
          ``(48) Chapter 481.
          ``(49) Chapter 491.
  ``(b) Incidental Functions.--In addition, the functions of the 
Administration shall include all functions of the Department of 
Transportation on the effective date of this section which the 
Administration determines are incidental to, helpful to, or necessary 
for the performance of the functions referred to in subsection (a) or 
which relate primarily to those functions.

``Sec. 1332. Regulations

  ``(a) General Authority.--The Administration may issue, rescind, and 
amend such regulations as are necessary to carry out its functions.
  ``(b) Approval of Board.--
          ``(1) General rule.--The Administration may only issue a 
        proposed regulation, final regulation, airworthiness directive, 
        or advisory circular that may result in the expenditure by 
        State, local, and tribal governments in the aggregate, or by 
        the private sector, of $10,000,000 or more (adjusted annually 
        for inflation) in any 1 year if the Board first approves of the 
        issuance of such regulation, directive, or circular.
          ``(2) Emergency action.--In an emergency, the Chief Executive 
        Officer may issue a regulation, directive, or circular 
        described in paragraph (1) without prior Board approval but 
        subject to Board ratification following issuance.
  ``(c) Review by DOT.--
          ``(1) Submission.--Before the Administration issues any 
        proposed or final regulation--
                  ``(A) the Administration shall submit a copy of the 
                regulation to the Secretary of Transportation;
                  ``(B) the Administration shall provide the Secretary 
                with a period of 5 days (excluding Saturdays, Sundays, 
                and holidays) beginning on the date of such submission 
                to determine whether or not the regulation is likely to 
                have a significant effect on other modes of 
                transportation in the national transportation system or 
                the Secretary's aviation responsibilities, including 
                national defense responsibilities; and
                  ``(C) if the Secretary determines, before the last 
                day of such 5-day period, that the regulation is likely 
                to have such a significant effect, the Administration 
                shall provide the Secretary with an additional period 
                of 45 days to assess the effect of the regulation on 
                other modes of transportation in the national 
                transportation system and the Secretary's aviation 
                responsibilities, including national defense 
                responsibilities.
          ``(2) Recommendations.--The Secretary may recommend to the 
        Administration modifications of a proposed or final regulation 
        necessary to minimize the adverse effect of such regulation on 
        other modes of transportation in the national transportation 
        system or the Secretary's aviation responsibilities, including 
        national defense responsibilities. The Administration may make 
        any modifications recommended by the Secretary. If the 
        Administration does not make a modification recommended by the 
        Secretary, the Administration shall include in the publication 
        of the proposed or final regulation a description of the 
        recommended modification and the reasons for not making the 
        modification.
          ``(3) Exceptions.--This subsection shall not apply to the 
        following types of regulations:
                  ``(A) Regulations pertaining to agency organization, 
                procedure, or practice.
                  ``(B) Regulations pertaining solely to navigational 
                aids.
                  ``(C) Regulations pertaining solely to airspace 
                designations and configurations.
                  ``(D) Regulations pertaining solely to standard 
                instrument approach procedures.
                  ``(E) Regulations pertaining solely to aircraft 
                design.
                  ``(F) Regulations pertaining to the personnel 
                management system developed under section 1314.
                  ``(G) Regulations pertaining to the acquisition 
                management system developed under section 1334.
          ``(4) Emergency action.--In an emergency, a regulation may 
        take effect for the duration of the emergency and before the 
        Secretary completes review of the regulation under this 
        subsection, as determined necessary by the Chief Executive 
        Officer or the Board.
  ``(d) Automatic Termination Date.--Any regulation issued by the 
Administration after the effective date of this section which is likely 
to result in the annual expenditure by State, local, and tribal 
governments in the aggregate, or by the private sector, of $25,000,000 
or more (adjusted annually for inflation) in any 1 year must contain an 
automatic termination date. The termination date shall also apply to 
any advisory circular issued by the Administration and pertaining 
solely to such regulation.
  ``(e) Emergency Defined.--In this section, the term `emergency' means 
a situation where there is good cause for finding that consideration by 
the Board or by the Department of Transportation is impracticable or 
contrary to the public interest.

``Sec. 1333. Finality of decisions; appeals

  ``Decisions of the Administration made pursuant to the exercise of 
the functions enumerated in subtitle VII of this title shall be 
administratively final, and appeals as currently authorized by law 
shall be taken directly to the National Transportation Safety Board or 
to any court of competent jurisdiction, as appropriate.

``Sec. 1334. Procurement program

  ``(a) Exemption From Procurement Laws.--
          ``(1) In general.--The following laws and regulations shall 
        not apply to the Federal Aviation Administration:
                  ``(A) Title III of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 251-
                266).
                  ``(B) The Office of Federal Procurement Policy Act 
                (41 U.S.C. 401 et seq.).
                  ``(C) The Federal Acquisition Streamlining Act of 
                1994 (Public Law 103-355).
                  ``(D) The Small Business Act (15 U.S.C. 631 et seq.); 
                except that the Administration shall provide reasonable 
                opportunities to small business concerns and small 
                business concerns owned and controlled by socially and 
                economically disadvantaged individuals to be awarded 
                contracts.
                  ``(E) Subchapter V of chapter 35 of title 31 
                (relating to the procurement protest system).
                  ``(F) The Brooks Automatic Data Processing Act (40 
                U.S.C. 759).
                  ``(G) Section 3709 of the Revised Statutes of the 
                United States (41 U.S.C. 5).
                  ``(H) The Federal Acquisition Regulation and any laws 
                not listed in subparagraphs (A) through (G) providing 
                authority to promulgate regulations in the Federal 
                Acquisition Regulation.
          ``(2) Effective date.--The exemption provided by paragraph 
        (1) shall not take effect until the expiration of the 180-day 
        period referred to in subsection (c)(2).
  ``(b) Development of Acquisition Management System.--
          ``(1) In general.--Not later than 180 days after the date of 
        the enactment of the Federal Aviation Administration 
        Revitalization Act of 1995, the Federal Aviation Board, in 
        consultation with such nongovernmental experts in acquisition 
        management systems as the Board may employ, shall develop an 
        acquisition management system for the Administration.
          ``(2) Consultation.--In developing the acquisition management 
        system, the Board shall consult nongovernmental experts in 
        acquisition management systems.
          ``(3) Goals.--The acquisition management system to be 
        developed by the Board under paragraph (1) shall be designed--
                  ``(A) to ensure that services are procured and new 
                equipment is installed and certified as quickly as 
                possible without sacrificing principles of fairness and 
                protection against waste, fraud, and abuse; and
                  ``(B) to ensure a common interoperable air traffic 
                control system with the military.
          ``(4) Experts evaluation.--The arrangements entered into by 
        the Board with the experts consulted by the Board under 
        paragraph (2) shall provide for those experts to evaluate the 
        acquisition management system developed by the Board and submit 
        to Congress the results of such evaluation before the last day 
        of the 180-day period referred to in paragraph (1).
  ``(c) Notice to Congress.--
          ``(1) In general.--Upon the development of the acquisition 
        management system, the Board shall submit a comprehensive plan 
        describing the acquisition management system to Congress, along 
        with all existing or proposed rules or regulations relevant to 
        the system.
          ``(2) Implementation.--The Administration may begin to 
        implement the acquisition management system only after the 
        expiration of the 180-day period that begins on the date on 
        which the plan is submitted to Congress under paragraph (1). 
        The acquisition management system shall apply to contracts 
        entered into after the expiration of such 180-day period.
  ``(d) Contracts.--
          ``(1) Approval of certain contracts.--The Administration may 
        only enter into a contract that has a total contract value, 
        including all options, of an amount greater than $100,000,000 
        if the Board first approves of the entry into the contract.
          ``(2) Notice to congress of certain contracts.--In addition 
        to complying with paragraph (1), the Administration may only 
        enter into a contract that has a total contract value, 
        including all options, of an amount greater than $250,000,000 
        if the Board provides written notice to Congress of the 
        proposed entry into the contract, together with a description 
        of the contract and at least 30 calendar days elapse after the 
        date of such notification.

``Sec. 1335. Judicial review of actions in carrying out certain 
                    transferred duties and powers

  ``(a) Judicial Review.--An action of the Administration in carrying 
out a duty or power transferred under the Department of Transportation 
Act (Public Law 89-670) and under the Federal Aviation Administration 
Revitalization Act of 1995 and an action of the Administrator of the 
Federal Aviation Administration in carrying out a duty or power 
specifically assigned to the Administrator by the Department of 
Transportation Act and transferred to the Administration by the Federal 
Aviation Administration Revitalization Act of 1995 may be reviewed 
judicially to the same extent and in the same way as if the action had 
been an action by the department, agency, or instrumentality of the 
United States Government carrying out the duty or power immediately 
before the transfer.
  ``(b) Application of Procedural Requirements.--A statutory 
requirement related to notice, an opportunity for a hearing, action on 
the record, or administrative review that applied to a duty or power 
transferred by the Acts referred to in subsection (a) applies to the 
Administration when carrying out the duty or power.''.

SEC. 4. BUDGET OF ADMINISTRATION.

  (a) In General.--Section 48109 of title 49, United States Code, is 
amended to read as follows:

``Sec. 48109. Budget information and legislative recommendations and 
                    comments

  ``(a) Preparation.--Subject to approval of the Federal Aviation 
Board, the Chief Executive Officer shall prepare an annual budget for 
the Administration.
  ``(b) Submission of Budget to DOT.--
          ``(1) In general.--At the same time that agencies of the 
        Department of Transportation having jurisdiction over other 
        modes of transportation are required to submit their budgets to 
        the Secretary of Transportation, the Administration shall 
        submit to the Secretary the budget prepared by the 
        Administration and approved by the Board. The Secretary shall 
        review the budget and may recommend to the Administration 
        modifications in the budget necessary to ensure that the budget 
        is consistent with the needs of the national transportation 
        system and the Secretary's aviation responsibilities. The 
        Administration may modify the budget to adopt any 
        recommendation made by the Secretary.
          ``(2) Opportunity for comment.--At least 30 days before 
        submitting a budget to the Secretary under paragraph (1), the 
        Administration shall submit a draft of the budget to the 
        Management Advisory Committee established by section 1315 for 
        comment.
  ``(c) Submission of Budget to Congress.--
          ``(1) In general.--When the Board submits to the President or 
        the Director of the Office of Management and Budget any budget 
        information, legislative recommendation, or comment on 
        legislation about amounts authorized in section 48101 or 
        section 48102, the Board concurrently shall submit a copy of 
        the information, recommendation, or comment to the Speaker of 
        the House of Representatives, the Committees on Transportation 
        and Infrastructure and Appropriations of the House of 
        Representatives, the President of the Senate, and the 
        Committees on Commerce, Science, and Transportation and 
        Appropriations of the Senate.
          ``(2) Special rule with respect to annual budgets.--The 
        annual budget of the Administration submitted to Congress shall 
        include--
                  ``(A) budget requests and Airport and Airway Trust 
                Fund estimates for the ensuing 4 fiscal years;
                  ``(B) a numerical ranking, by degree of importance to 
                the national airspace system, of the Administration's 
                requests for funding of air traffic control 
                modernization projects under section 48101;
                  ``(C) the total number of man-years of direct effort 
                the Administration estimates it will use under support 
                service contracts (including professional, technical, 
                engineering, site preparation, and installation and 
                other services comparable to those performed by 
                Government employees, but not including maintenance as 
                part of a supply contract, janitorial, research and 
                development, or construction services or services 
                incidental to supply contracts) during the fiscal year 
                for which the budget is being submitted;
                  ``(D) any modifications made by the Administration 
                under subsection (b) with respect to the budget; and
                  ``(E) if the Administration does not adopt a 
                recommendation made by the Secretary under subsection 
                (b), a description of the recommendation and the 
                reasons for not adopting the recommendation.
        Subparagraph (C) shall take effect with the budget submission 
        for fiscal year 1997. The estimate under subparagraph (C) for 
        such budget submission shall include for comparison the 
        estimated total number of man-years of direct effort the 
        Administration used under such support service contracts in 
        each of fiscal years 1992 and 1995.''.
  (b) Conforming Amendment.--The analysis for chapter 481 is amended by 
striking the item relating to section 48109 and inserting the 
following:

``48109. Budget information and legislative recommendations and 
comments.''.

SEC. 5. COST-BENEFIT ANALYSIS FOR MINIMUM SAFETY STANDARDS.

  Section 44701 is amended by adding at the end the following:
  ``(f) Cost-Benefit Analysis.--
          ``(1) In general.--For any regulation or standard to be 
        issued under subsection (a) or (b) that is likely to result in 
        annualized compliance costs in excess of $25,000,000, the 
        Administration shall, in addition to other requirements in law, 
        identify and publish together with such regulation or standard 
        the following:
                  ``(A) The benefits of the regulation or standard, 
                quantified where appropriate and feasible, and 
                otherwise qualitatively described, including in 
                appropriate cases, the nature and number of deaths or 
                injuries that the regulation or standard is designed to 
                prevent.
                  ``(B) The approximate number of aircraft, airports, 
                airmen, or cabin crew affected by the regulation or 
                standard.
                  ``(C) The probable cost of fulfilling the 
                requirements of the regulation or standard, quantified 
                where appropriate and feasible, and otherwise 
                qualitatively described, including in appropriate cases 
                any adverse effects on competition or disruption or 
                dislocation of air service or other commercial 
                practices engaged in by the entities affected by such 
                requirements.
                  ``(D) Alternative means of achieving the objective of 
                the regulation or standard while minimizing the costs, 
                adverse effects on competition, and the disruption or 
                dislocation of air service or the commercial practices 
                affected by the regulation or standard and a statement 
                as to why the Administration chose the regulation or 
                standard adopted in preference to the alternatives 
                considered.
          ``(2) Emergency.--In the case of an emergency, the Chief 
        Executive Officer or the Board may suspend the application of 
        this subsection for the duration of the emergency.
          ``(3) Nonapplicability to advisory circulars.--This 
        subsection shall not apply to advisory circulars.''.

SEC. 6. BUDGETARY TREATMENT OF TRUST FUND.

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

``Sec. 48111. Budgetary treatment of Airport and Airway Trust Fund

  ``The receipts and disbursements of the Airport and Airway Trust Fund 
established by section 9502 of the Internal Revenue Code of 1986 (26 
U.S.C. 9502)--
          ``(1) shall not be included in the totals of--
                  ``(A) the budget of the United States Government as 
                submitted by the President, or
                  ``(B) the congressional budget (including allocations 
                of budget authority and outlays provided therein),
          ``(2) shall be exempt from any general budget limitation 
        imposed by statute on expenditures and net lending (budget 
        outlays) of the United States Government, and
          ``(3) shall be exempt from any order issued under part C of 
        the Balanced Budget and Emergency Deficit Control Act of 1985.

``Sec. 48112. Safeguards against deficit spending

  ``(a) Estimates of Unfunded Aviation Authorizations and Net Aviation 
Receipts.--Not later than March 31 of each year, the Federal Aviation 
Administration, in consultation with the Secretary of the Treasury, 
shall estimate--
          ``(1) the amount which would (but for this section) be the 
        unfunded aviation authorizations at the close of the first 
        fiscal year that begins after that March 31, and
          ``(2) the net aviation receipts at the close of such fiscal 
        year.
  ``(b) Procedure of Excess Unfunded Aviation Authorizations.--If the 
Administration determines for any fiscal year that the amount described 
in subsection (a)(1) exceeds the amount described in subsection (a)(2), 
the Board shall determine the amount of such excess.
  ``(c) Adjustment of Authorizations if Unfunded Authorizations Exceed 
Receipts.--
          ``(1) Determination of percentage.--If the Administration 
        determines that there is an excess referred to in subsection 
        (b) for a fiscal year, the Administration shall determine the 
        percentage which--
                  ``(A) such excess, is of
                  ``(B) the total of the amounts authorized to be 
                appropriated from the Airport and Airway Trust Fund 
                established by section 9502 of the Internal Revenue 
                Code of 1986 (26 U.S.C. 9502) for the next fiscal year.
          ``(2) Adjustment of authorizations.--If the Administration 
        determines a percentage under paragraph (1), each amount 
        authorized to be appropriated from the Airport and Airway Trust 
        Fund for the next fiscal year shall be reduced by such 
        percentage.
  ``(d) Availability of Amounts Previously Withheld.--
          ``(1) Adjustment of authorizations.--If, after a reduction 
        has been made under subsection (c)(2), the Administration 
        determines that the amount described in subsection (a)(1) does 
        not exceed the amount described in subsection (a)(2) or that 
        the excess referred to in subsection (b) is less than the 
        amount previously determined, each amount authorized to be 
        appropriated that was reduced under subsection (c)(2) shall be 
        increased, by an equal percentage, to the extent the 
        Administration determines that it may be so increased without 
        causing the amount described in subsection (a)(1) to exceed the 
        amount described in subsection (a)(2) (but not by more than the 
        amount of the reduction).
          ``(2) Apportionment.--The Administration shall apportion 
        amounts made available for apportionment by paragraph (1).
          ``(3) Period of availability.--Any funds apportioned under 
        paragraph (2) shall remain available for the period for which 
        they would be available if such apportionment took effect with 
        the fiscal year in which they are apportioned under paragraph 
        (2).
  ``(e) Reports.--Any estimate under subsection (a) and any 
determination under subsection (b), (c), or (d) shall be reported by 
the Administration to Congress.
  ``(f) Definitions.--In this section, the following definitions apply:
          ``(1) Net aviation receipts.--The term `net aviation 
        receipts' means, with respect to any period, the excess of--
                  ``(A) the receipts (including interest) of the 
                Airport and Airway Trust Fund during such period, over
                  ``(B) the amounts to be transferred during such 
                period from the Airport and Airway Trust Fund under 
                section 9502(d) of the Internal Revenue Code of 1986 
                (other than paragraph (1) thereof).
          ``(2) Unfunded aviation authorizations.--The term `unfunded 
        aviation authorization' means, at any time, the excess (if any) 
        of--
                  ``(A) the total amount authorized to be appropriated 
                from the Airport and Airway Trust Fund which has not 
                been appropriated, over
                  ``(B) the amount available in the Airport and Airway 
                Trust Fund at such time to make such appropriation 
                (after all other unliquidated obligations at such time 
                which are payable from the Airport and Airway Trust 
                Fund have been liquidated).''.
  (b) Conforming Amendment.--The analysis for chapter 481 of title 49, 
United States Code, is amended by adding at the end the following:

``48111. Budgetary treatment of Airport and Airway Trust Fund.
``48112. Safeguards against deficit spending.''.

  (c) Applicability.--This section (including the amendments made by 
this section) shall apply to fiscal years beginning after September 30, 
1995.

SEC. 7. AMENDMENT TO INSPECTOR GENERAL ACT OF 1978.

  Section 11 of the Inspector General Act of 1978 (5 U.S.C. App.) is 
amended--
          (1) in paragraph (1) by inserting ``or Federal Aviation 
        Administration'' after ``Community Service''; and
          (2) in paragraph (2) by inserting ``the Federal Aviation 
        Administration,'' after ``United States Information Agency,''.

SEC. 8. PASSENGER FACILITY CHARGES.

  (a) Fee Retained by Airlines.--
          (1) Deadline for response to petition.--Not later than 75 
        days after the date of the enactment of this Act, the 
        Administrator of the Federal Aviation Administration shall 
        issue a notice of a proposed rulemaking or a denial of the 
        petition in Docket 27791 of the Federal Aviation Administration 
        (relating to increasing the fee that airlines retain in 
        collecting passenger facility charges).
          (2) Effect of failure to respond.--If the Administrator does 
        not respond to the petition in the docket referred to in 
        paragraph (1) as required by paragraph (1), the fee increase 
        sought by the petitioner in such docket shall become effective 
        after the 75th day referred to in paragraph (1) until such date 
        as the Administrator responds to such petition.
  (b) Review of Program.--The Secretary of Transportation shall 
complete the review required by section 121 of the Federal Aviation 
Administration Reauthorization Act of 1994 (108 Stat. 1581) not later 
than the 75th day following the date of the enactment of this Act.

SEC. 9. SELECT PANEL TO REVIEW INNOVATIVE FUNDING MECHANISMS.

  (a) Establishment.--The Federal Aviation Board shall establish a 
select panel to review and report to Congress regarding innovative 
financing mechanisms for ensuring adequate funding for existing and 
future aviation infrastructure needs and for funding the operations of 
the Federal Aviation Administration in a manner that would provide for 
future growth in the Nation's air traffic system, improve the 
management and performance of the air traffic control system, and make 
the Administration more efficient and effective. The financing 
mechanisms to be reviewed shall include, but not be limited to, loan 
guarantees, financial partnerships with for-profit private sector 
entities, multi-year appropriations, revolving loan funds, mandatory 
spending authority, authority to borrow, and restructured grant 
programs.
  (b) Appointment of Members.--Not later than 90 days after the date of 
the appointment of at least 2 members of the Board, the Board shall 
appoint members to the panel established under this section. Such 
members shall consist of appropriate Federal Government officials and 
representatives of the aviation industry, Administration employees, the 
financial community, and State and local governments.
  (c) Travel and Per Diem.--Each member of the panel established under 
this section 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.
  (d) Applicability of Federal Advisory Committees Act.--The select 
panel established under this section shall be subject to the Federal 
Advisory Committee Act (5 U.S.C. App.).
  (e) Report.--Not later than 1 year after the date of the appointment 
of the last member to the panel under subsection (b), the panel shall 
submit to Congress and the Federal Aviation Administration a report on 
the results of the review conducted under this section.

SEC. 10. TRANSFER OF PERSONNEL, PROPERTY, RECORDS, AND FUNDS.

  So much of the personnel, property, records, funds, accounts, and 
unexpended balances of appropriations, allocations, and other funds of 
the Department of Transportation and the Federal Aviation 
Administration as are employed, used, held, available, or to be made 
available, in connection with the functions which under this Act 
(including the amendments made by this Act) are made functions of the 
Federal Aviation Administration established by section 1311 of title 
49, United States Code, are transferred to the Federal Aviation 
Administration.

SEC. 11. SAVINGS PROVISIONS.

  (a) Orders, Regulations, Contracts, and Certificates.--All orders, 
determinations, rules, regulations, permits, contracts, certificates, 
licenses, and privileges--
          (1) which have been issued, made, granted, or allowed to 
        become effective by the President or any Federal department or 
        agency or official thereof or by a court of competent 
        jurisdiction, on or after the effective date of this section in 
        regard to functions which under this Act (including the 
        amendments made by this Act) are made functions of the Federal 
        Aviation Administration established by section 1311 of title 
        49, United States Code; and
          (2) which are in effect on the effective date of this 
        section,
shall continue in effect according to their terms until modified, 
terminated, superseded, set aside, or revoked in accordance with law by 
the President, the Federal Aviation Board, or other authorized 
officials, by a court of competent jurisdiction, or by operation of 
law.
  (b) Proceedings and Applications.--The provisions of this Act 
(including the amendments made by this Act) shall not affect any 
proceedings or any application for any license, permit, certificate, or 
financial assistance pending on the effective date of this section, and 
such proceedings and applications, to the extent that they relate to 
functions under this Act that are made functions of the Administration, 
shall be continued. Orders shall be issued in such proceedings, appeals 
shall be taken therefrom, and payments shall be made pursuant to such 
orders, as if this Act had not been enacted; and orders issued in any 
such proceedings shall continue in effect until modified, terminated, 
superseded, or revoked by a duly authorized official, by a court of 
competent jurisdiction, or by operation of law. Nothing in this 
subsection shall be deemed to prohibit the discontinuance or 
modification of any such proceeding under the same terms and conditions 
and to the extent that such proceeding could have been discontinued or 
modified if this Act had not been enacted.
  (c) Suits.--
          (1) Effect on pending suits.--The provisions of this Act 
        (including the amendments made by this Act) shall not affect 
        suits commenced prior to the effective date of this section.
          (2) Procedures.--In all suits commenced prior to the 
        effective date of this section, proceedings shall be had, 
        appeals taken, and judgments rendered in the same manner and 
        effect as if this Act had not been enacted.
  (d) Administrator.--If the Chief Executive Officer of the Federal 
Aviation Administration is not appointed by the Federal Aviation Board 
on the effective date of this section, the person serving as the 
Administrator of the Federal Aviation Administration on the day before 
such effective date shall act as the Chief Executive Officer until the 
Chief Executive Officer is appointed as provided in section 1313 of 
title 49, United States Code. While so acting, such person shall 
receive compensation at the rate such person was receiving on the day 
before such effective date.
  (e) Agreements With Department of Defense.--Any agreement between the 
Federal Aviation Administration and the Department of Defense in effect 
on the day before the date of the enactment of this Act shall remain in 
effect until terminated in accordance with the terms of such agreement.

SEC. 12. LAWS AND REGULATIONS.

  Except to the extent otherwise provided in this Act (including the 
amendments made by this Act), all laws, rules, regulations, and 
executive orders in effect and applicable to the Federal Aviation 
Administration of the Department of Transportation and to the 
Administrator of such Administration on the day before the effective 
date of this Act shall, on and after such effective date, be applicable 
to the Federal Aviation Administration and the Federal Aviation Board 
established by this Act (including the amendments made by this Act), 
until such law, rule, regulation, or executive order is repealed or 
otherwise modified or amended.

SEC. 13. TERMINATION OF FAA OF DOT.

  The Federal Aviation Administration of the Department of 
Transportation is terminated.

SEC. 14. CORRESPONDING REDUCTIONS IN OFFICE OF SECRETARY.

  The Secretary of Transportation shall terminate 200 employee 
positions in the Office of the Secretary to reflect reductions in the 
aviation responsibilities in the Office of the Secretary by enactment 
of this Act.

SEC. 15. CONFORMING AMENDMENTS.

  (a) Federal Aviation Administration in DOT.--
          (1) In general.--Subject to paragraph (2), subsections (a) 
        through (j) of section 106 are repealed.
          (2) Technical adjustments.--
                  (A) In general.--Subchapter II of chapter 13 (as 
                inserted by section 3 of this Act) is amended--
                          (i) by adding at the end the following new 
                        section heading:

``Sec. 1317. Civil Aeromedical Institute''; and

                          (ii) by inserting the text of section 106(j) 
                        as an undesignated paragraph under such section 
                        heading.
                  (B) Chapter analysis amendment.--The analysis for 
                such chapter is amended by adding after the item 
                relating to section 1316 the following:

``1317. Civil Aeromedical Institute.''.

          (3) Authorization of appropriations for faa operations.--
                  (A) Fiscal year 1996.--Section 106(k) is amended by--
                          (i) striking ``(k) Authorization of 
                        Appropriations for Operations.--''; and
                          (ii) by striking ``Secretary of 
                        Transportation'' and inserting ``Federal 
                        Aviation Administration''.
                  (B) Conforming amendment.--Effective September 30, 
                1996, section 106, as amended by this subsection, and 
                the item relating to section 106 in the analysis for 
                chapter 1 are repealed.
  (b) General Duties and Powers of the Department of Transportation.--
          (1) Leadership, consultation, and cooperation.--Section 
        301(6) is amended by striking ``, with particular attention to 
        aircraft noise, and including'' and inserting ``and''.
          (2) Policy on lands, wildlife and waterfowl refuges, and 
        historic sites.--Section 303 is amended--
                  (A) in subsection (b) by inserting ``and the Federal 
                Aviation Administration'' after ``of Transportation''; 
                and
                  (B) in subsection (c) by inserting ``and 
                Administration'' after ``Secretary''.
          (3) Reports.--Section 308(b) is amended--
                  (A) by striking ``Secretary'' the 1st place it 
                appears and inserting ``Federal Aviation Board'';
                  (B) by striking ``Department'' and inserting 
                ``Federal Aviation Administration''; and
                  (C) by striking ``Secretary'' the 2nd and 3rd places 
                it appears and inserting ``Board''.
          (4) Members of the armed forces.--Section 324 is amended--
                  (A) by striking subsection (a) and inserting the 
                following:
  ``(a) In General.--
          ``(1) FAA.--The Federal Aviation Administration, to ensure 
        that national defense interests are safeguarded properly and 
        that the Administration is advised properly about the needs and 
        special problems of the armed forces, shall provide for 
        participation of members of the armed forces in carrying out 
        the duties and powers of the Administration related to the 
        regulation and protection of air traffic, including providing 
        for, and research and development of, air navigation 
        facilities, and the allocation of airspace.
          ``(2) Secretary of transportation.--The Secretary of 
        Transportation may provide for participation of members of the 
        armed forces in carrying out other duties and powers of the 
        Secretary.''; and
                  (B) in subsection (d) by inserting after 
                ``Transportation'' each place it appears the following: 
                ``or Federal Aviation Administration''.
          (5) Judicial review.--Section 351(a) is amended--
                  (A) by striking ``An'' and inserting ``Subject to 
                section 1335, an''; and
                  (B) by striking ``, the Federal Highway 
                Administration, or the Federal Aviation 
                Administration'' and inserting ``or the Federal Highway 
                Administration''.
          (6) Authority to carry out certain transferred duties and 
        powers.--Section 352 is amended by striking ``, the Federal 
        Highway Administration, and the Federal Aviation 
        Administration'' and inserting ``and the Federal Highway 
        Administration''.
          (7) Toxicological testing.--Section 353(a) is amended--
                  (A) by inserting before ``conducts'' the following: 
                ``or the Federal Aviation Administration'';
                  (B) by inserting after ``Department'' the second 
                place it appears ``or Administration''; and
                  (C) by inserting before ``shall'' each place it 
                appears ``or Chief Executive Officer of the 
                Administration''.
  (c) Functions of FAA.--
          (1) National transportation safety board.--
                  (A) Disclosure of drug test information to ntsb.--
                Section 1114(d)(1) is amended--
                          (i) by inserting before ``shall'' the 
                        following: ``and the Federal Aviation 
                        Administration'';
                          (ii) in subparagraph (A) by inserting before 
                        ``under post-accident'' the following: ``or the 
                        Administration''; and
                          (iii) in subparagraph (A) by inserting before 
                        ``, when'' the following: ``or the 
                        Administration''.
                  (B) Investigation of certain accidents.--Section 
                1131(c)(1) is amended by inserting ``or the Federal 
                Aviation Administration, as the case may be,'' after 
                ``Transportation''.
                  (C) Civil aircraft accident investigations.--Section 
                1132 is amended--
                          (i) in the heading to subsection (c) by 
                        striking ``Secretary'' and inserting ``Federal 
                        Aviation Administration'';
                          (ii) in subsection (c) by striking 
                        ``Secretary of Transportation'' and inserting 
                        ``Federal Aviation Administration'';
                          (iii) in subsection (c) by striking 
                        ``Secretary'' the 2nd and 3rd places it appears 
                        and inserting ``Administration''; and
                          (iv) in subsection (d) by striking 
                        ``Secretary'' each place it appears and 
                        inserting ``Administration''.
                  (D) Review of other agency action.--Section 1133(1) 
                is amended by striking ``Secretary of Transportation'' 
                and inserting ``Federal Aviation Administration''.
                  (E) Responses to safety recommendations.--Section 
                1135 is amended--
                          (i) by striking the section heading and 
                        inserting the following:

``Sec. 1135. DOT's and FAA's responses to safety recommendations'';

                          (ii) in subsection (a) by inserting after 
                        ``Secretary of Transportation'' the following: 
                        ``or the Federal Aviation Administration'';
                          (iii) in subsection (a) by inserting ``or the 
                        Administration'' after ``Secretary'' the 2nd 
                        and 3rd places it appears;
                          (iv) in subsection (d) by striking ``shall'' 
                        and inserting ``and the Administration shall 
                        each'';
                          (v) in subsection (d) by inserting before 
                        ``during'' the following: ``or 
                        Administration''; and
                          (vi) in subsection (d) by inserting after 
                        ``Secretary's'' the following: ``or 
                        Administration's''.
                  (F) Judicial review.--Section 1153(c) is amended--
                          (i) in the subsection heading by striking 
                        ``Administrator'' and inserting 
                        ``Administration'';
                          (ii) by striking ``the Administrator of''; 
                        and
                          (iii) by striking ``Administrator'' the 
                        second and third places it appears and 
                        inserting ``Administration''.
                  (G) Conforming amendment.--The analysis to chapter 11 
                is amended by striking the item relating to section 
                1135 and inserting the following:

``1135. DOT's and FAA's responses to safety recommendations.''.

          (2) Intermodal transportation advisory board.--Section 
        5502(b) is amended to read as follows:
  ``(b) Membership.--The Board consists of--
          ``(1) the Secretary, who serves as chairman;
          ``(2) the Chief Executive Officer of the Federal Aviation 
        Administration or the Chief Executive Officer's designee; and
          ``(3) the Administrator, or the Administrator's designee, 
        of--
                  ``(A) the Federal Highway Administration;
                  ``(B) the Maritime Administration;
                  ``(C) the Federal Railroad Administration; and
                  ``(D) the Federal Transit Administration.''.
          (3) General provisions relating to air commerce and safety.--
                  (A) Policy.--Section 40101 is amended--
                          (i) in subsection (a) by inserting after 
                        ``Secretary of Transportation'' the following: 
                        ``and the Federal Aviation Administration'';
                          (ii) in subsection (c) by striking 
                        ``Administrator of the''; and
                          (iii) in subsection (d) by striking 
                        ``Administrator'' and inserting 
                        ``Administration''.
                  (B) Definitions.--Section 40102(a) is amended--
                          (i) in paragraphs (8)(B) and (37) by striking 
                        ``the Administrator of'';
                          (ii) in paragraph (20) by striking 
                        ``Administrator'' and inserting ``Federal 
                        Aviation Administration''; and
                          (iii) by moving the second sentence of 
                        paragraph (37) 2 ems to the left.
                  (C) Sovereignty and use of air space.--Section 40103 
                is amended--
                          (i) in subsection (a)(2) by inserting after 
                        ``Secretary of Transportation'' the following: 
                        ``and the Federal Aviation Administration''; 
                        and
                          (ii) in subsection (b)--
                                  (I) by striking ``Administrator of 
                                the''; and
                                  (II) by striking ``Administrator'' 
                                each place it appears after the first 
                                and inserting ``Administration''.
                  (D) Promotion of civil aeronautics and air 
                commerce.--Section 40104 is amended--
                          (i) in subsection (a) by striking 
                        ``Administrator of the'';
                          (ii) in subsection (a) by striking 
                        ``Administrator'' each place it appears after 
                        the first and inserting ``Administration''; and
                          (iii) in subsection (b) by striking 
                        ``Secretary of Transportation'' and inserting 
                        ``Administration''.
                  (E) International negotiations, agreements, and 
                obligations.--Section 40105 is amended--
                          (i) in subsection (a) by striking 
                        ``Administrator of the'';
                          (ii) in the heading to subsection (b) by 
                        striking ``Administrator'' and inserting 
                        ``Administration'';
                          (iii) in subsection (b)(1) by striking 
                        ``Administrator'' and inserting 
                        ``Administration''; and
                          (iv) in subsection (c)(1) by inserting before 
                        the semicolon ``and the Federal Aviation 
                        Administration''.
                  (F) Emergency powers.--Section 40106 is amended--
                          (i) in subsection (a)--
                                  (I) in paragraph (1) by striking 
                                ``Administrator of the''; and
                                  (II) in paragraph (2) by striking 
                                ``Administrator'' and inserting 
                                ``Administration''; and
                          (ii) in subsection (b)(2) by inserting after 
                        ``Secretary of Transportation'' the following: 
                        ``or the Federal Aviation Administration''.
                  (G) Presidential transfers.--Section 40107 is 
                amended--
                          (i) in subsection (a) by striking 
                        ``Administrator of the''; and
                          (ii) by striking ``Administrator'' each place 
                        it appears after the first and inserting 
                        ``Administration''.
                  (H) Training schools.--Section 40108 is amended--
                          (i) in subsection (a) by striking 
                        ``Administrator of the''; and
                          (ii) by striking ``Administrator'' each place 
                        it appears after the first and inserting 
                        ``Administration''.
                  (I) Authority to exempt.--Section 40109(b) is 
                amended--
                          (i) by striking ``Administrator of the''; and
                          (ii) by striking ``Administrator'' the second 
                        place it appears and inserting 
                        ``Administration''.
                  (J) General procurement authority.--Section 40110 is 
                amended--
                          (i) in subsection (a) by striking 
                        ``Administrator of the'';
                          (ii) in subsection (a)(1) by striking 
                        ``Administrator'' and inserting 
                        ``Administration'';
                          (iii) in subsection (b) by striking 
                        ``Administrator of'' the first place it appears 
                        and inserting ``Chief Executive Officer of'';
                          (iv) in subsection (b)(2)(E) by striking 
                        ``Administrator of the''; and
                          (v) in subsection (b)(2)(E) by striking 
                        ``Administrator;'' and inserting 
                        ``Administration;''.
                  (K) Multiyear procurement contracts for services and 
                related items.--Section 40111 is amended--
                          (i) in subsection (a) by striking 
                        ``Administrator of the''; and
                          (ii) in subsections (b) and (c) by striking 
                        ``Administrator'' each place it appears and 
                        inserting ``Administration''.
                  (L) Multiyear procurement contracts for property.--
                Section 40112 is amended--
                          (i) in subsection (a) by striking 
                        ``Administrator of the'';
                          (ii) in subsections (b), (c), and (e)(2) by 
                        striking ``Administrator'' each place it 
                        appears and inserting ``Administration''; and
                          (iii) by adding at the end the following:
  ``(g) Limitation.--This section and section 40111 shall not be 
effective to the extent they are inconsistent with the acquisition 
management system being implemented under section 1334.''.
                  (M) Administrative.--Section 40113 is amended--
                          (i) in subsection (a) by striking ``(or the 
                        Administrator of'' and inserting ``and'';
                          (ii) in subsection (a) by striking 
                        ``Administrator)'' and inserting 
                        ``Administration'';
                          (iii) in subsection (a) by striking 
                        ``Administrator'' the last place it appears and 
                        inserting ``Administration'';
                          (iv) in subsection (b) by striking ``has'' 
                        the 1st place it appears and inserting ``and 
                        the Administration have'';
                          (v) in subsection (c) by striking ``The 
                        Secretary'' and all that follows through 
                        ``Administrator)'' and inserting ``In carrying 
                        out aviation safety functions, duties, and 
                        powers, the Federal Aviation Administration'';
                          (vi) in subsection (c) by striking ``to 
                        assist the Secretary or Administrator of'' and 
                        inserting ``to assist'';
                          (vii) in subsection (d) by striking 
                        ``Administrator of the'';
                          (viii) in subsection (d) by striking 
                        ``Administrator'' the last place it appears and 
                        inserting ``Administration'';
                          (ix) in subsection (e) by striking 
                        ``Administrator'' each place it appears and 
                        inserting ``Administration''; and
                          (x) by adding at the end the following:
  ``(f) Exemptions.--
          ``(1) FAA review of regulations.--Prior to issuing any 
        regulation or granting any exemption to a regulation issued 
        under this chapter that affects the transportation of hazardous 
        materials by air, the Secretary shall provide the 
        Administration an opportunity for review, and the 
        Administration may disapprove such action if the Administration 
        determines that there would be an adverse effect on aviation 
        safety.
          ``(2) Proposed changes.--The Administration may, in the 
        interest of aviation safety, propose to the Secretary 
        regulatory changes affecting the transportation of hazardous 
        materials by air.
          ``(3) Enforcement.--Enforcement actions for violations of 
        this chapter or of any regulations issued under this chapter 
        that affect the transportation of hazardous materials by air 
        shall be brought by the Administration.''.
                  (N) Reports and records.--Section 40114 is amended--
                          (i) in subsection (a)(1) by striking ``(or 
                        the Administrator of'' and inserting ``and'';
                          (ii) in subsection (a)(1) by striking 
                        ``Administrator)'' and inserting 
                        ``Administration'';
                          (iii) in subsection (a)(1) by striking 
                        ``Administrator'' the last place it appears and 
                        inserting ``Administration'';
                          (iv) in subsection (a)(2) by striking ``(or 
                        the Administrator'' and inserting ``and the 
                        Administration'';
                          (v) in subsection (a)(2) by striking 
                        ``Administrator)'' and inserting 
                        ``Administration''; and
                          (vi) in subsection (a)(2) by striking 
                        ``Administrator'' the last 2 places it appears 
                        and inserting ``Administration''.
                  (O) Withholding information.--Section 40115(a) is 
                amended by inserting after ``Secretary of 
                Transportation'' each place it appears the following: 
                ``or Federal Aviation Administration''.
                  (P) Passenger facility fees.--Section 40117 is 
                amended--
                          (i) in subsection (b)(1) by striking 
                        ``Secretary of Transportation'' and inserting 
                        ``Federal Aviation Administration''; and
                          (ii) in subsections (c) through (i) by 
                        striking ``Secretary'' each place it appears 
                        and inserting ``Administration''.
                  (Q) Security and research and development 
                activities.--Section 40119 is amended--
                          (i) in subsection (a) by striking 
                        ``Administrator of the''; and
                          (ii) in subsections (b) and (c) by striking 
                        ``Administrator'' each place it appears and 
                        inserting ``Administration''.
          (4) Navigation of foreign civil aircraft.--Section 41703 is 
        amended--
                  (A) in subsection (a)(3) by inserting ``, after 
                consultation with the Federal Aviation 
                Administration,'' after ``Secretary of 
                Transportation''; and
                  (B) in subsection (b) by inserting ``, after 
                consultation with the Federal Aviation 
                Administration,'' after ``Secretary'' the 2nd place it 
                appears.
          (5) Slots.--Section 41714 is amended--
                  (A) in subsection (a)(1) by striking ``Secretary of 
                Transportation'' and inserting ``Federal Aviation 
                Administration'';
                  (B) in subsections (a)(2), (a)(3), (a)(4), (b)(1), 
                (b)(2), (c), (d), (f), and (g) by striking 
                ``Secretary'' and ``secretary'' each place they appear 
                and inserting ``Administration'' and 
                ``administration'', respectively;
                  (C) in subsection (b)(3) by striking ``Secretary'' 
                the first place it appears and inserting 
                ``Administration'';
                  (D) in subsection (b)(3) by inserting after 
                ``Secretary'' the second place it appears the 
                following: ``of Transportation'';
                  (E) in subsection (h)(2) by striking 
                ``Administrator'' and inserting ``Administration''; and
                  (F) by adding at the end the following:
  ``(i) Consultation With DOT.--In making determinations with respect 
to essential air service, exceptional circumstances, and the public 
interest, the Administration shall consult with the Secretary of 
Transportation.''.
          (6) Registration and recordation of aircraft.--Chapter 441 
        (other than section 44109) is amended--
                  (A) by striking ``Administrator of the'' each place 
                it appears;
                  (B) by striking ``Administrator'' each place it 
                appears (other than a place to which subparagraph (A) 
                applies and the 3rd place it appears in section 
                44111(d)) and inserting ``Administration''; and
                  (C) in section 44102(b) by striking ``Secretary of 
                Transportation'' and inserting ``Federal Aviation 
                Administration''.
          (7) Insurance.--Chapter 443 is amended--
                  (A) by striking ``Secretary of Transportation'' each 
                place it appears and inserting ``Federal Aviation 
                Administration''; and
                  (B) by striking ``Secretary'' each place it appears 
                (other than a place to which subparagraph (A) applies, 
                the 2nd, 3rd, and 5th places it appears in section 
                44305(b), the 1st place it appears in section 
                44307(a)(1), the 2nd place it appears in section 
                44307(b), and the 3rd place it appears in section 
                44307(d)) and inserting ``Administration''.
          (8) Facilities, personnel, and research.--Chapter 445 is 
        amended--
                  (A) by striking ``Administrator of the'' each place 
                it appears (other than the 1st place it appears in 
                section 44501(c)(2)(B) and the last place it appears in 
                section 44502(c)(1));
                  (B) by striking ``Administrator'' each place it 
                appears (other than a place to which subparagraph (A) 
                applies, the 1st place it appears in section 
                44501(c)(2)(B), the last place it appears in section 
                44502(c), and in section 44507(3)) and inserting 
                ``Administration'';
                  (C) in section 44506(b) by striking ``Administrators 
                of the Federal Aviation Administration and'' and 
                inserting ``Federal Aviation Administration and the 
                Administrator of the'';
                  (D) in section 44506(c) by striking ``Department of 
                Transportation'' and inserting ``Administration'';
                  (E) in section 44506(d) by striking ``Public Works 
                and Transportation'' and inserting ``Transportation and 
                Infrastructure'';
                  (F) in section 44507--
                          (i) by striking ``106(j)'' and inserting 
                        ``1317''; and
                          (ii) by striking ``the Administrator'' in 
                        paragraph (3) and inserting ``the Federal 
                        Aviation Board'';
                  (G) in section 44514(b) by striking ``Secretary and 
                the'';
                  (H) by striking ``Secretary of Transportation'' each 
                place it appears and inserting ``Federal Aviation 
                Administration''; and
                  (I) by striking ``Secretary'' each place it appears 
                (other than in sections 44501(b)(1)(B), 44502(c)(1), 
                and 44505(a)(3) and a place to which subparagraphs (G) 
                and (H) apply) and inserting ``Administration''.
          (9) Safety regulation.--Chapter 447 is amended--
                  (A) by striking ``Administrator of the'' each place 
                it appears (other than the 2nd place it appears in 
                section 44714, the 2nd place it appears in section 
                44715(a)(2), the 1st, 4th, 7th, 9th, 10th, and 11th 
                places it appears in section 44715(c), the 1st and 3rd 
                places it appears in section 44715(d)(1), the 2nd place 
                it appears in section 44715(d)(2), the 1st, 3rd, and 
                5th places it appears in section 44715(e), and the 2nd, 
                4th, and 6th places it appears in section 44715(f));
                  (B) by striking ``Administrator'' each place it 
                appears (other than a place to which subparagraph (A) 
                applies, the 3rd place it appears in section 
                44703(f)(2), the 3rd place it appears in section 
                44713(d)(2), the 2nd place it appears in section 44714, 
                the 2nd place it appears in section 44715(a)(2), the 
                1st, 4th, 7th, 9th, 10th, and 11th places it appears in 
                section 44715(c), the 1st and 3rd places it appears in 
                section 44715(d)(1), the 2nd place it appears in 
                section 44715(d)(2), the 1st, 3rd, and 5th places it 
                appears in section 44715(e), the 2nd, 4th, and 6th 
                places it appears in section 44715(f), and in section 
                44720(b)(2)) and inserting ``Administration'';
                  (C) in section 44702(d)(3) by striking 
                ``Administrator's'' and inserting ``Administration's'';
                  (D) in the subsection heading to section 44709(b) by 
                striking ``Administrator'' and inserting 
                ``Administration'';
                  (E) in section 44720(b)(2) by striking 
                ``Administrator'' each place it appears and inserting 
                ``Federal Aviation Administration'';
                  (F) by striking ``Secretary of Transportation'' each 
                place it appears (other than in sections 44712(b)(2) 
                and 44723) and inserting ``Federal Aviation 
                Administration'';
                  (G) in section 44723 by striking ``Secretary of 
                Transportation'' and inserting ``Federal Aviation 
                Board''; and
                  (H) by striking ``Secretary'' each place it appears 
                (other than in sections 44712(b)(2) and 44720 and a 
                place to which subparagraph (F) or (G) applies) and 
                inserting ``Administration''.
          (10) Security.--Chapter 449 is amended--
                  (A) by striking ``Administrator of the'' each place 
                it appears;
                  (B) by striking ``Administrator'' each place it 
                appears (other than a place to which subparagraph (A) 
                applies, the 1st two places it appears in section 
                44932(a), the 1st place it appears in section 44932(b), 
                the 1st place it appears in section 44932(c), the 5th 
                place it appears in section 44933(a), and each place it 
                appears in section 44934(b)) and inserting 
                ``Administration'';
                  (C) in section 44933(b)(4) by striking 
                ``Administrator's'' and inserting ``Administration's'';
                  (D) by striking the heading for section 44932 and 
                inserting ``Civil aviation security'';
                  (E) by striking subsection (a) of section 44932 and 
                redesignating subsections (b) and (c) as subsections 
                (a) and (b), respectively;
                  (F) in section 44932(a), as redesignated by 
                subparagraph (E), by striking ``Assistant 
                Administrator'' and inserting ``officer designated by 
                the Chief Executive Officer of the Federal Aviation 
                Administration'';
                  (G) in section 44932(b), as redesignated by 
                subparagraph (E), by striking ``Assistant 
                Administrator'' and inserting ``Administration'';
                  (H) in sections 44933(a) and 44934(b) by striking 
                ``Assistant Administrator for Civil Aviation Security'' 
                and inserting ``officer designated by the Chief 
                Executive Officer of the Administration'';
                  (I) in section 44934(b)(1) by striking ``Assistant 
                Administrator'' and inserting ``Administration'';
                  (J) by striking ``Secretary of Transportation'' each 
                place it appears (other than in sections 44903(b)(1), 
                44907(d)(1)(C), 44907(d)(3), 44907(e), 44907(f), 
                44911(b), 44912(a)(3), 44931, and 44938(a)) and 
                inserting ``Federal Aviation Administration'';
                  (K) by striking ``Secretary'' each place it appears 
                (other than a place to which subparagraph (J) applies, 
                the 1st place it appears in section 44903(d), in 
                section 44903(b)(1), the 2nd place it appears in 
                section 44907(b), the 3rd place it appears in section 
                44907(c), in section 44907(d)(1)(C), the 3rd place it 
                appears in section 44907(d)(2)(A)(ii), the 2nd and 3rd 
                places it appears in section 44907(d)(2)(B), in section 
                44907(d)(3), the 2nd place it appears in section 
                44907(d)(4), in sections 44907(e) and 44907(f), the 4th 
                place it appears in section 44908(a), the 1st place it 
                appears in section 44908(b), the 2nd place it appears 
                in section 44909(a), and in sections 44910, 44911, 
                44912(a)(3), 44931, 44934, and 44938(a)) and inserting 
                ``Administration'';
                  (L) in section 44905(g) by striking ``Department of 
                Transportation'' and inserting ``Federal Aviation 
                Administration'';
                  (M) in sections 44907(d)(1)(C), 44907(d)(3), 
                44907(e), and 44907(f) by inserting ``or Federal 
                Aviation Administration'' after ``of Transportation'';
                  (N) in section 44907(d)(3) by inserting ``or 
                Administration'' after ``Secretary'' the 2nd place it 
                appears; and
                  (O) in the chapter analysis by striking the item 
                relating to section 44932 and inserting the following:

``44932. Civil aviation security.''.

          (11) Alcohol and controlled substances testing.--Chapter 451 
        is amended--
                  (A) by striking ``Administrator of the'' each place 
                it appears; and
                  (B) by striking ``Administrator'' each place it 
                appears (other than a place to which subparagraph (A) 
                applies) and inserting ``Administration''.
          (12) Fees.--Chapter 453 is amended--
                  (A) by striking ``Administrator of the'' each place 
                it appears;
                  (B) by striking ``Administrator'' each place it 
                appears (other than a place to which subparagraph (A) 
                applies) and inserting ``Administration'';
                  (C) in section 45301(a) by inserting after 
                ``Secretary of Transportation'' the following: ``and 
                the Federal Aviation Administration, as the case may 
                be,''; and
                  (D) in section 45301(c)(4) by striking 
                ``Administrator's'' and inserting ``Administration's''.
          (13) Investigations and proceedings.--Chapter 461 is 
        amended--
                  (A) in sections 46101(a)(1), 46102(a), 46103(a)(1), 
                and 46104(a)--
                          (i) by striking ``(or the Administrator of'' 
                        and inserting ``(or''; and
                          (ii) by striking ``Administrator)'' and 
                        inserting ``Administration)'';
                  (B) by striking ``Administrator of the'' each place 
                it appears (other than a place to which subparagraph 
                (A)(i) applies and in section 46101(b));
                  (C) by striking ``Administrator'' each place it 
                appears (other than a place to which subparagraph (A) 
                or (B) applies) and inserting ``Administration'';
                  (D) in section 46109 by inserting ``or the Federal 
                Aviation Administration'' after ``Transportation''; and
                  (E) in the subsection heading to section 46107(c) by 
                striking ``Administrator'' and inserting 
                ``Administration''.
          (14) Penalties.--Chapter 463 is amended--
                  (A) in section 46301(c)--
                          (i) by inserting ``by other than air'' after 
                        ``transportation'' in paragraph (1)(D);
                          (ii) by redesignating paragraph (2) as 
                        paragraph (3);
                          (iii) by inserting after paragraph (1) the 
                        following:
          ``(2) FAA notice and hearing.--The Federal Aviation 
        Administration may impose a civil penalty for violations under 
        subsection (a)(1) of this section related to the transportation 
        by air of hazardous material only after notice and an 
        opportunity for a hearing.'';
                          (iv) by inserting ``or Administration, as 
                        appropriate,'' after ``Secretary'' in paragraph 
                        (3), as so redesignated; and
                          (v) by striking ``paragraph (1) of'' in such 
                        paragraph (3).
                  (B) in section 46301(d)(2) by striking 
                ``Administrator of the'';
                  (C) in subsections (d) and (e) of section 46301--
                          (i) by striking ``Administrator'' each place 
                        it appears (other than a place to which 
                        subparagraph (A) applies) and inserting 
                        ``Administration''; and
                          (ii) by striking ``Secretary'' each place it 
                        appears and inserting ``Administration'';
                  (D) in section 46301(f) by inserting ``or 
                Administration, as the case may be,'' after 
                ``Secretary'';
                  (E) in section 46301(g) by inserting ``and an order 
                of the Administration'' before ``imposing'';
                  (F) in section 46301(h)(2) by striking the 
                parenthetical phrase and inserting ``or Administration, 
                as appropriate,'';
                  (G) in section 46302(b) by striking ``Secretary of 
                Transportation'' and inserting ``Federal Aviation 
                Administration'';
                  (H) in section 46303--
                          (i) by striking ``Secretary of 
                        Transportation'' and inserting ``Federal 
                        Aviation Administration''; and
                          (ii) by striking ``Administrator of the'';
                  (I) in section 46304--
                          (i) by striking ``Administrator of the''; and
                          (ii) by striking ``Administrator'' each place 
                        it appears (other than a place to which clause 
                        (i) applies) and inserting ``Administration'';
                  (J) in section 46306 by striking ``Administrator of 
                the'' each place it appears;
                  (K) in section 46308(2) by striking ``Administrator 
                of the'';
                  (L) in section 46311--
                          (i) by striking ``Administrator of the''; and
                          (ii) by striking ``Administrator'' each place 
                        it appears (other than a place to which clause 
                        (i) applies) and inserting ``Administration'';
                  (M) in section 46313--
                          (i) by striking ``Administrator of the''; and
                          (ii) by striking ``Administrator'' the 2nd 
                        place it appears and inserting 
                        ``Administration'';
                  (N) in section 46315(b)(1) by striking 
                ``Administrator of the''; and
                  (O) in section 46316(a)--
                          (i) by striking ``Administrator of the''; and
                          (ii) by striking ``Administrator'' the 2nd 
                        place it appears and inserting 
                        ``Administration''.
          (15) Special aircraft jurisdiction of united states.--Section 
        46505(d)(2) is amended by striking ``Administrator of the''.
          (16) Airport development.--Chapter 471 is amended--
                  (A) by striking ``Secretary of Transportation'' each 
                place it appears (other than in section 47102(1)(A)) 
                and inserting ``Federal Aviation Administration'';
                  (B) by striking ``Secretary'' each place it appears 
                (other than a place to which subparagraph (A) applies, 
                in sections 47101(h), 47102(1)(A), 47102(1)(B)(i), 
                47103(a), 47103(c), 47106(c)(2), 47107(j)(4), 47110(e), 
                and 47112(b), and the 2nd and 3rd places it appears in 
                section 47153(b)) and inserting ``Administration'';
                  (C) in section 47106(c)(1)(B)(ii) by inserting ``of 
                the Environmental Protection Agency'' after 
                ``Administrator'';
                  (D) in section 47106(c)(2) by striking ``Secretary'' 
                and inserting ``Federal Aviation Administration'';
                  (E) in sections 47106(c)(3) and 47110(d)(2)(B) by 
                striking ``Secretary's'' and inserting 
                ``Administration's'';
                  (F) in section 47107(k) by striking ``Public Works 
                and Transportation'' and inserting ``Transportation and 
                Infrastructure'';
                  (G) in section 47110(e)--
                          (i) by striking ``Secretary'' each place 
                        (other than the 2nd and 6th places) it appears 
                        and inserting ``Federal Aviation Board''; and
                          (ii) by striking ``Secretary'' the 2nd and 
                        6th places it appears and inserting ``Federal 
                        Aviation Administration'';
                  (H) in the heading for each of sections 47117(h), 
                47129(a)(3), and 47129(c) by striking ``Secretary'' and 
                inserting ``Administration'';
                  (I) in the subsection heading for section 47129(a) by 
                striking ``Secretary's'' and inserting 
                ``Administration's''; and
                  (J) in section 47130 by striking ``Administrator of 
                the''.
          (17) International airport facilities.--Chapter 473 is 
        amended--
                  (A) in section 47302--
                          (i) by striking ``Secretary of 
                        Transportation'' in subsection (a)(1) and 
                        inserting ``Federal Aviation Administration''; 
                        and
                          (ii) by striking ``Secretary of 
                        Transportation or'' in subsection (c) and 
                        inserting ``Federal Aviation Administration or 
                        the Secretary of'';
                  (B) in section 47303--
                          (i) by striking ``Secretary of Transportation 
                        or'' and inserting ``Federal Aviation 
                        Administration or the Secretary of''; and
                          (ii) in paragraph (1) by striking 
                        ``Secretary'' and inserting ``agency head'';
                  (C) in section 47304--
                          (i) by striking ``Secretary of Transportation 
                        or'' in subsection (a) and inserting ``Federal 
                        Aviation Administration or the Secretary of'';
                          (ii) by striking ``Secretary'' the 2nd and 
                        3rd places it appears in subsection (a) and 
                        inserting ``agency head'';
                          (iii) by striking ``Secretary of 
                        Transportation'' the 1st place it appears in 
                        subsection (b) and inserting ``Federal Aviation 
                        Administration'';
                          (iv) by striking ``Secretary of 
                        Transportation or'' in subsection (b)(2) and 
                        inserting ``Chief Executive Officer of the 
                        Federal Aviation Administration or the 
                        Secretary of'';
                          (v) by striking ``Secretary of 
                        Transportation'' each place it appears in 
                        subsection (c) and inserting ``Federal Aviation 
                        Administration''; and
                          (vi) by striking ``Secretary of 
                        Transportation or'' in subsection (d)(2) and 
                        inserting ``Chief Executive Officer of the 
                        Federal Aviation Administration or the 
                        Secretary of'';
                  (D) in section 47305--
                          (i) by striking ``Secretary of 
                        Transportation'' in subsection (a) and 
                        inserting ``Federal Aviation Administration'';
                          (ii) by striking ``Secretary'' the 3rd and 
                        4th places it appears in subsection (a) and 
                        inserting ``agency head''; and
                          (iii) by striking ``Secretary of 
                        Transportation or'' in subsection (b) and 
                        inserting ``Chief Executive Officer of the 
                        Federal Aviation Administration or the 
                        Secretary of''; and
                  (E) in section 47306 by striking ``Secretary of 
                Transportation'' and inserting ``Federal Aviation 
                Administration''.
          (18) Noise.--Chapter 475 is amended--
                  (A) by striking ``Administrator of the'' each place 
                it appears (other than the 1st place it appears in 
                section 47502, the 2nd place it appears in section 
                47509(a), the 2nd place it appears in section 47509(c), 
                the 2nd place it appears in section 47509(d), and the 
                2nd place it appears in section 47509(e));
                  (B) by striking ``Administrator'' each place it 
                appears (other than a place to which subparagraph (A) 
                applies, the 1st place it appears in section 47502, the 
                2nd place it appears in section 47509(a), the 2nd place 
                it appears in section 47509(c), the 2nd place it 
                appears in section 47509(d), and the 2nd place it 
                appears in section 47509(e)) and inserting 
                ``Administration'';
                  (C) by striking ``Secretary of Transportation'' each 
                place it appears and inserting ``Federal Aviation 
                Administration''; and
                  (D) by striking ``Secretary'' each place it appears 
                (other than a place to which subparagraph (C) applies) 
                and inserting ``Administration''.
          (19) Financing.--Chapter 481 (other than section 48109) is 
        amended--
                  (A) by striking ``Administrator of the'' each place 
                it appears;
                  (B) by striking ``Administrator'' each place it 
                appears (other than a place to which subparagraph (A) 
                applies) and inserting ``Administration'';
                  (C) by striking ``Secretary of Transportation'' each 
                place it appears and inserting ``Federal Aviation 
                Administration'';
                  (D) by striking ``Secretary'' each place it appears 
                (other than a place to which subparagraph (C) applies 
                and the 1st place it appears in section 48105) and 
                inserting ``Administration'';
                  (E) in section 48102(d)(2) by striking ``Public Works 
                and Transportation'' and inserting ``Transportation and 
                Infrastructure''; and
                  (F) in section 48108(b)(2) by striking ``Department 
                of Transportation'' and inserting ``Federal Aviation 
                Administration''.
          (20) Miscellaneous.--Chapter 491 is amended--
                  (A) by striking ``Administrator of the'' each place 
                it appears;
                  (B) by striking ``Administrator'' each place it 
                appears (other than a place to which subparagraph (A) 
                applies) and inserting ``Administration'';
                  (C) by striking ``Secretary of Transportation'' each 
                place it appears and inserting ``Federal Aviation 
                Administration''; and
                  (D) by striking ``Secretary'' each place it appears 
                (other than a place to which subparagraph (C) applies 
                and in section 49103(b)(1)) and inserting 
                ``Administration''.
          (21) Commercial space launch activities.--Subtitle IX is 
        amended--
                  (A) by striking ``Secretary of Transportation'' each 
                place it appears and inserting ``Federal Aviation 
                Administration'';
                  (B) by striking ``Secretary'' each place it appears 
                (other than a place to which subparagraph (A) applies, 
                the 1st place it appears in section 70109(a), the 2nd 
                place it appears in each of sections 70109(b), 
                70109(c), 70112(a)(2), and 70112(b)(2), the 2nd and 3rd 
                places it appears in each of sections 70116(a) and 
                70116(b), in section 70117(b)(2), and the 2nd place it 
                appears in each of sections 70303(b)(2) and 70304(a)) 
                and inserting ``Administration''; and
                  (C) in the subsection heading to section 70111(c) by 
                striking ``Secretary'' and inserting 
                ``Administration''.
  (d) Title 5, United States Code.--
          (1) Executive schedule pay rates.--
                  (A) Administrator.--Section 5313 of title 5, United 
                States Code, is amended by striking ``Administrator, 
                Federal Aviation Administration.''.
                  (B) Deputy administrator.--Section 5315 of such title 
                is amended by striking ``Deputy Administrator, Federal 
                Aviation Administration.''.
          (2) Definitions.--Section 2109 of title 5, United States 
        Code, is amended--
                  (A) by striking ``Department of Transportation'' each 
                place it appears and inserting ``Federal Aviation 
                Administration''; and
                  (B) by striking ``Secretary of Transportation'' and 
                inserting ``Chief Executive Officer of the Federal 
                Aviation Administration''.
          (3) Expense of training.--Section 4109(c) of title 5, United 
        States Code, is amended by striking ``Administrator, Federal 
        Aviation Administration,'' and inserting ``Federal Aviation 
        Administration''.
          (4) Reduction in retirement pay for former members of uniform 
        services.--Section 5532(f) of title 5, United States Code, is 
        repealed.
          (5) Differential pay.--Chapter 55 of title 5, United States 
        Code, is amended--
                  (A) in the heading to section 5546a by striking ``the 
                Federal Aviation Administration and'';
                  (B) in section 5546a(a) by striking ``Administrator 
                of the Federal Aviation Administration (hereafter in 
                this section referred to as the `Administrator') and 
                the'';
                  (C) in subsections (a)(1), (a)(2), (c), (d), (e), and 
                (f)(1) of section 5546a--
                          (i) by striking ``Administrator or the'' each 
                        place it appears; and
                          (ii) by striking ``the Federal Aviation 
                        Administration or'' each place it appears;
                  (D) by striking ``; and'' at the end of section 
                5546a(a)(2) and inserting a period;
                  (E) by striking paragraph (3) of section 5446a(a);
                  (F) in section 5546a(f)--
                          (i) by striking ``(1)''; and
                          (ii) by striking paragraph (2); and
                  (G) in the item relating to section 5546a of the 
                analysis for such chapter by striking ``the Federal 
                Aviation Administration and''.
  (e) Coast Guard Cooperation.--Chapter 5 of title 14, United States 
Code, is amended--
          (1) in the heading to section 82 by striking ``Administrator 
        of'';
          (2) in sections 81, 82, and 90(b) by striking ``the 
        Administrator of'' each place it appears;
          (3) in section 90(b) by striking ``Administrator may'' and 
        inserting ``Administration may''; and
          (4) in the item relating to section 82 of the analysis for 
        such chapter by striking ``Administrator of''.
  (f) Access to National Driver Register.--Section 30305(b)(3) of title 
49, United States Code, is amended--
          (1) by striking ``the Administrator of''; and
          (2) by striking ``Administrator'' each place it appears after 
        the first and inserting ``Administration''.
  (g) Wolf Trap Farm Park.--The Wolf Trap Farm Park Act (16 U.S.C. 284-
284j) is amended--
          (1) in section 4(e)--
                  (A) by striking ``Administrator of the''; and
                  (B) by striking ``Administrator'' each place it 
                appears after the first and inserting 
                ``Administration''; and
          (2) in section 8(b) by striking ``Administrator of the'' each 
        place it appears.
  (h) Certification of Firearms.--Section 922(p)(5)(A) of title 18, 
United States Code, is amended by striking ``the Administrator of''.
  (i) National Air and Space Museum Advisory Board.--Section 1(a) of 
the Act entitled ``An Act to establish a national air museum, and for 
other purposes'', approved August 12, 1946 (20 U.S.C. 77(a)), is 
amended by striking ``Administrator of the Federal'' and all that 
follows through the first succeeding comma and inserting ``Chief 
Executive Officer of the Federal Aviation Administration,''.
  (j) Federal Property.--Section 602(d)(14) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 474(d)(14)) is amended 
by striking ``Administrator of the'' and all that follows through 
``or'' and inserting ``Federal Aviation Administration or''.
  (k) Noise Control.--The Noise Control Act of 1972 (42 U.S.C. 4901-
4918) is amended--
          (1) in section 12(a)(2)(B) (42 U.S.C. 4911(a)(2)(B))--
                  (A) by striking ``Administrator of the'';
                  (B) by striking ``611 of the Federal Aviation Act of 
                1958'' and inserting ``44709(b)(1)(B) or 44715 of title 
                49, United States Code,''; and
                  (C) by striking ``such Administrator'' each place it 
                appears and inserting ``such Administration'';
          (2) in the last sentence of section 12(a) by striking ``such 
        Administrator'' and inserting ``the agency'';
          (3) in section 12(b)(1)(A) by striking ``Administrator'' the 
        2nd place it appears and inserting ``Administration'';
          (4) in sections 12(b)(1)(B) and 12(e) by striking 
        ``Administrator'' and inserting ``agency'';
          (5) in section 12(c)--
                  (A) by striking ``Administrator of the'' the 2nd 
                place it appears; and
                  (B) by striking ``611 of the Federal Aviation Act of 
                1958,'' and inserting ``44715 of title 49, United 
                States Code,'';
          (6) in section 16(a) (42 U.S.C. 4915(a))--
                  (A) by striking ``Administrator of the'' the 2nd 
                place it appears;
                  (B) by striking ``611 of the Federal Aviation Act of 
                1958'' and inserting ``44715 of title 49, United States 
                Code,''; and
                  (C) by striking ``Administrator'' the 3rd place it 
                appears and inserting ``agency'';
          (7) in section 16(b)--
                  (A) by inserting ``the Federal Aviation'' before 
                ``Administration''; and
                  (B) by striking ``Administrator'' each place it 
                appears after the 1st and inserting ``agency''; and
          (8) in section 16(c) by striking ``Administrator'' and 
        inserting ``agency''.
  (l) Phase-out of Halon.--Section 604(d)(3) of the Clean Air Act (42 
U.S.C. 7671c(d)(3)) is amended by striking ``Administrator of the'' 
each place it appears.

SEC. 16. REFERENCES.

  A reference in any law, regulation, document, record, map, or other 
paper of the United States to the Secretary of Transportation (and any 
reference to the Administrator of the Federal Aviation Administration) 
with respect to a function which under this Act (including the 
amendments made by this Act) is made a function of the Federal Aviation 
Administration established by section 1311 of title 49, United States 
Code, shall be deemed to be a reference to the Federal Aviation 
Administration established by such section.

SEC. 17. EFFECTIVE DATE.

  (a) In General.--Except as provided in subsection (b), this Act 
(including the amendments made by this Act) shall take effect on the 
90th day following the date of the enactment of this Act.
  (b) Exceptions.--Section 1312 of title 49, United States Code, and 
section 8 of this Act shall take effect on the date of the enactment of 
this Act. The amendments made by section 15(d)(5) of this Act, relating 
to differential pay, shall take effect on the date the Federal Aviation 
Board begins implementation of the personnel management system for the 
Federal Aviation Administration under section 1314(d)(2) of title 49, 
United States Code.

                                 Report

    The reported bill (H.R. 2276) removes the Federal Aviation 
Administration (FAA) from the Department of Transportation 
(DOT) and makes it an independent establishment within the 
executive branch. The agency would be governed by a three-
member Board appointed by the President and confirmed by the 
Senate. This Board would select a Chief Executive Officer to 
manage the day-to-day operation of the agency. In addition, the 
Secretaries of Transportation and Defense would serve as non-
voting members of the Board.
    The bill would also give the FAA dramatic new flexibility 
in the areas of personnel, procurement, and financing. This 
would be accomplished by exempting the agency from most 
personnel and procurement laws that apply to other government 
entities and permitting the FAA to develop its own personnel 
and procurement systems, subject to Congressional review. 
Financing is addressed by taking the aviation trust fund off-
budget in order to ensure that the money aviation users pay is 
actually spent to improve the system they use. Finally, H.R. 
2276 includes new regulatory provisions to ensure that the 
agency's rule-making actions are fully justified.

                               Background

    The regulation of civil aviation began with the Air 
Commerce Act of 1926. That Act placed responsibility for 
aviation regulation within the Department of Commerce.
    In the late thirties and early forties, the government's 
role in civil aviation was transferred to the Civil Aeronautics 
Board (CAB) and the Civil Aeronautics Administration (CAA). The 
CAA, which was still part of the Department of Commerce, 
handled many of the duties now controlled by the FAA such as 
air traffic control, airman and aircraft certification, safety 
enforcement, and airway development. Some safety matters, such 
as safety rulemaking and accident investigation, were handled 
by the CAB. Other governmental entities also had a role in 
civil aviation. These included the Department of Defense, the 
Air Coordinating Committee, the Air Navigation Development 
Board, and the Airways Modernization Board.
    The current FAA did not begin to take shape until the late 
1950s. Growing concern about aviation safety, heightened by a 
series of midair collisions, led to efforts to separate the CAA 
from the Department of Commerce.
    Proponents of an independent CAA argued that the CAA's 
aviation professionals were being stymied by the ``ground-
minded'' businessmen overseeing them at Commerce.\1\ The 
Commerce Department hierarchy resisted the independence 
movement, first by giving the agency a higher priority within 
the Department and then by arguing that removing it from a 
cabinet-level agency would make it difficult for aviation to 
have its problems considered at the highest level.\2\ The 
Bureau of the Budget (predecessor to the Office of Management 
and Budget) also weighed in against an independent agency. It 
was opposed to independent agencies generally preferring, in 
this case, the placement of all transportation activities in a 
single agency, either Commerce or a new Department of 
Transportation.
    \1\ S. Rochester, ``Takeoff at Mid-Century,'' at 84 and 191 (1976).
    \2\ Id, at 191 and 199.
---------------------------------------------------------------------------
    In the end, those favoring independence prevailed. One of 
the most important reasons for their success was concern about 
a growing airways crisis. The crisis began after World War II 
with the rapid growth in civil aviation. Studies were 
undertaken and reports were issued all calling for an increase 
in navigation aids, improved communications, and modern air 
traffic control procedures. Timetables were offered for 
accomplishing these projects but by the mid-fifties, it was 
apparent that the CAA was woefully behind schedule. The CAA was 
subject to some harsh criticism for its failure to modernize 
the airways system. But many considered this criticism unfair 
blaming instead the dictates of an imperious Commerce 
Department.\3\
    \3\ Id, at 67.
---------------------------------------------------------------------------
    The failure to modernize meant that controllers were using 
systems and procedures that were almost 20 years old.\4\ As a 
result, harried controllers could ensure safety only by 
delaying some flights on the ground. The system actually set a 
safety record in 1954 but this record was achieved at the 
expense of chronic delays that were a nuisance to passengers 
and costly to airlines. The crisis began to be featured in 
popular magazines with such graphic titles as ``The Shrinking 
Air'' and ``Russian Roulette on our Airways?'' \5\ It came to a 
head with mid-air collisions over the Grand Canyon in 1956 and 
over Las Vegas and Brunswick, Maryland in 1958.
    \4\ Id, at 59.
    \5\ Id, at 63.
---------------------------------------------------------------------------
    As a result, on August 23, 1958, the Federal Aviation Act 
was signed by President Eisenhower and the Federal Aviation 
Agency was born. This new independent agency was given the 
responsibility for aviation safety, air traffic control, and 
airways modernization.
    The new FAA remained independent for eight years. By all 
accounts it worked well during that period. The Administrator 
for much of that time described the independent FAA as ``a very 
vital, very vibrant, entrepreneurial, pioneering 
organization.'' \6\
    \6\ ``Restructuring Air Traffic Control as a Private or Government 
Corporation'': Hearings Before the Subcommittee on Aviation of the 
House Committee on Transportation and Infrastructure, 104-17, 104th 
Congress, 1st Session, 327 (February 1995) (statement of Najeeb Halaby) 
[Hereinafter cited as Corporation Hearing].
---------------------------------------------------------------------------
    Nevertheless, in 1966, the effort to consolidate all 
transportation functions in one government department was 
renewed. The Johnson Administration argued that this would 
improve transportation safety and efficiency.\7\ However, the 
aviation industry had grown and prospered since aviation 
regulation had been removed from the Commerce Department and 
many feared that the creation of a Transportation Department 
would dismantle FAA and the achievements it had gained for the 
industry.\8\ They sought assurances that the operational 
integrity of the agency and powers of the Administrator would 
be maintained.\9\ This assurance was embodied in the provision 
(now codified at 49 U.S.C. 106(g)) stating that the FAA 
``Administrator shall carry out duties and powers of the 
Secretary of Transportation * * * related to aviation safety.'' 
As the legislation was going through Congress, it was believed 
that those words meant what they said, and the Administrator's 
decisions on safety would be final.
     \7\ R. Kent, ``Safe, Separated, and Soaring,'' at 175 (1980).
    \8\ Id., at 177.
    \9\ Id., at 178 and 181.
---------------------------------------------------------------------------
    Senator Randolph, manager of the bill in the Senate, 
pointed out that, while the House bill transferred all 
functions to DOT ``the Senate version would transfer all FAA 
functions to the Secretary, with the specific proviso that 
certain basic aviation safety responsibilities which are 
specifically identified in the bill would be exercised by the 
FAA Administrator. The Administrator's decisions in the safety 
areas would be administratively final.'' \10\
    \10\ 112 Congressional Record 24422 (October 6, 1966).
---------------------------------------------------------------------------
    Senator Randolph stated that:

          The Senate course is preferable since it would place 
        in one identifiable official, the Administrator of the 
        Federal Aviation Agency, the responsibility for 
        aviation safety regulation. This preserves a 
        fundamental safety principle recognized in the Federal 
        Aviation Act of 1958, which required the Administrator 
        to have aviation experience and an aviation background. 
        Aviation safety regulation is the field in which FAA 
        has had long and broad experience and about which it 
        has developed a high level of expertise. Lodging this 
        responsibility with the Secretary, as the House bill 
        does, would involve him unduly in technical aviation 
        safety regulation. Although the Secretary could 
        redelegate his duties, he could not redelegate his 
        responsibility. Confusion and uncertainty might exist 
        as to the locus of responsibility for aviation 
        safety.\11\
    \11\ Id.

    The Conference report adopted the Senate language and it 
was signed into law (P.L. 86-670). There was every reason to 
believe FAA would be autonomous and have authority over safety, 
but the Department didn't follow that approach.
    On October 17, 1968, DOT issued a memorandum through its 
General Counsel's office stating:

          With the exception of the NTSB, there are no 
        independently-administered programs or activities in 
        the Department of Transportation. The power and 
        authority of the Secretary is complete and supreme. It 
        is superior to the power of all other officers of the 
        Department * * * No operating unit, subdivision, or 
        officer of the Department (with the exception of the 
        NTSB) has any independent power of any kind or nature. 
        All are subject in all respects to supervision by the 
        Secretary and must carry out their functions, powers, 
        duties, authorizations, and responsibilities in 
        accordance with the Secretary's guidance.

    Under these circumstances, the Federal Aviation Agency 
became the Federal Aviation Administration, one of several 
modal units within the new Department of Transportation.
    Despite the FAA's inability to achieve the expected degree 
of independence, the aviation industry continued to grow. As a 
result of the Airline Deregulation Act of 1978 (P.L. 95-504), 
passenger traffic has doubled and is now over 500 million 
passengers per year. It is expected to top 800 million by 2002. 
According to DOT, the 10 largest U.S. airlines now conduct 
14,650 flights per day. \12\ If you add in commuter, military, 
general aviation, and other flights, there are 107,500 per day. 
This is expected to increase 18 percent by 2002.
    \12\ ``Reasons For, and Reporting of, Airline Flight Delays'': 
Hearings before the Subcommittee on Aviation of the House Committee on 
Transportation and Infrastructure, 104-29, 104th Congress, 1st Session, 
(July 27, 1995) 194.
---------------------------------------------------------------------------
    In recent years, there has been growing concern that the 
FAA's existing structure does not give it the flexibility to 
cope with the current situation, let alone with future growth. 
In the early eighties, the FAA launched a $16 billion program 
to upgrade and modernize the nation's air traffic control 
equipment. Unfortunately, that program is now years behind 
schedule and billions over budget.
    The result has been that air traffic controllers must use 
computers and other equipment that is often more than 20 years 
old. Approximately, 500 FAA air traffic control facilities 
still use vacuum tubes which most private businesses replaced 
years ago. Not surprisingly, this equipment has been breaking 
down at air traffic control facilities across the nation. While 
FAA has managed to maintain a high level of safety, it has 
often done so by holding flights on the ground. This has meant 
airlines and their passengers must endure annoying and costly 
delays.
    The equipment breakdowns have shaken public confidence in 
the aviation system. These worries have been exacerbated by 
articles with dramatic titles such as ``Flying Blind'' and 
``How Safe Is This Flight?'' \13\
    \13\ ``U.S. News and World Report,'' June 26, 1995 and 
``Newsweek,'' April 24, 1995.
---------------------------------------------------------------------------
    At our Aviation Subcommittee hearings on this problem, 
witnesses cited continued DOT interference with FAA operations 
and cumbersome personnel and procurement laws as being 
primarily responsible.\14\ This was not the first time these 
problems had been raised. Indeed, over the past 10 years, 
similar concerns have been raised by numerous studies and 
several pieces of legislation.\15\
    \14\ Corporation Hearing, Supra Note 6. See also ``Field Hearing on 
Computer Outages at the Federal Aviation Administration Air Traffic 
Control Center in Aurora, Illinois'': Hearings Before the Subcommittee 
on Aviation of the House Committee on Transportation and 
Infrastructure, 104-32, 104th Congress, 1st Session (September 1995).
    \15\ See generally Executive Oversight Committee, U.S. Department 
of Transportation, Air Traffic Control Corporation Study 155-166. 
[Hereinafter cited as Corporation Study]; S. 1600, 100th Congress, 1st 
Session (1987); H.R. 4650, 100th Congress, 2nd Session (1988).
---------------------------------------------------------------------------
    The Administration and DOT attempted to address these 
concerns by proposing legislation to separate FAA's air traffic 
control function from the rest of the agency and forming a 
government corporation to manage the nation's airways.\16\ 
Under this proposal, the remaining FAA would stay within DOT 
and regulate the safety of the corporation as well as other 
aviation businesses.
    \16\ H.R. 1441, 104th Congress, 1st Session (1995).
---------------------------------------------------------------------------
    The corporation proposal received very little support.\17\ 
Many were concerned that dividing up the agency in this way 
would undermine safety. Others were concerned about who would 
be accountable if something went wrong. There was a sense on 
the Committee that the public would continue to hold Congress 
responsible even though it would have much less control over a 
corporation than a government agency. Questions were also 
raised within various segments of the aviation community over 
their representation on the corporate Board and what this would 
mean for their access to the airways. Doubts were also 
expressed about the financing of the corporation and the 
remaining FAA. It was feared, and subsequent events tended to 
confirm, that the corporation proposal was an attempt to pass 
governmental costs on to the users leaving them with the 
Hobbesian choice of either raising fees on themselves or trying 
to continue to operate under an old and inefficient air traffic 
control system.
    \17\ Corporation Hearing, Supra Note 6.
---------------------------------------------------------------------------
    In order to address the problems of our aviation system, 
without creating the sorts of new ones described above, the 
Committee has developed the reported bill (H.R. 2276). Hearings 
were held on this bill on September 28, 1995 and October 11, 
1995.\18\ This legislation reforms and revitalizes the FAA by 
addressing problems in four areas--procurement and personnel, 
management, financing, and regulatory relief.
    \18\ Federal Aviation Administration Revitalization Act of 1995: 
Hearings before the Subcommittee on Aviation of the House Committee on 
Transportation and Infrastructure, 104th Congress, 1st Session (1995) 
[Hereinafter cited as Revitalization Act Hearing].
---------------------------------------------------------------------------

                           Reform Legislation

                    PROCUREMENT AND PERSONNEL REFORM

    The FAA's air traffic control system includes 402 towers at 
airports, 167 terminal radar approach control (TRACON) 
facilities that control airspace near busy airports, 21 air 
route traffic control centers that control aircraft flying at 
higher altitudes between airports, and 61 automated flight 
service stations that primarily serve general aviation.\19\ 
These facilities depend on 29,284 assets such as radar, 
communications, and automation equipment. About 40,000 FAA 
employees operate, maintain, and develop the air traffic 
control equipment. An additional 8,000 FAA employees are 
responsible for aviation safety, regulation, and security. The 
agency's budget is more than $8 billion per year.
    \19\ Corporation Study, Supra Note 15, at 17, 18.
---------------------------------------------------------------------------
    In 1981, the FAA launched a $16 billion program to 
modernize its air traffic control facilities and equipment. 
This was originally called the National Airspace (NAS) plan but 
is now known as the Capital Investment Plan (CIP). Currently, 
the CIP is estimated to cost $37.3 billion through 2003.\20\ 
While some of the cost growth can be attributed to new projects 
being added to the plan, many of the original projects are way 
behind schedule and well over budget. For example, the total 
cost of the Advanced Automation System (AAS), the centerpiece 
of the modernization program, grew from $2.5 billion in 1983 to 
an estimated $7.6 billion in 1994 and the project has slipped 8 
years from its original schedule. As a result, the project has 
had to be restructured and its capabilities scaled back. At our 
September 26, 1995 Aviation Subcommittee's hearing at an FAA 
facility near Chicago, there was dramatic testimony on the 
deleterious effect that the delays in modernization have had on 
the nation's airways.
    \20\ U.S. General Accounting Office, ``Air Traffic Control: Status 
of FAA's Modernization Program'' 2 (May 1995).
---------------------------------------------------------------------------
    These problems have been attributed, in part, to the 10,500 
pages of statutes and regulations under which FAA and other 
government agencies acquire things. These laws and regulations, 
although designed with good intentions, result in a procurement 
process that is too rigid, takes too long, and results in the 
inefficient use of time, people, and money.
    For example, DOT has described how it usually takes four 
years to award a contract even in a simple acquisition.\21\ 
Time is taken getting the equipment request approved by the 
FAA, DOT, and OMB bureaucracies. Then more time is required to 
prepare the formal procurement request, advertise the proposal, 
conduct technical evaluations of the offers, negotiate with 
potential vendors, and award the contract. In total, this 
usually takes four years. After the contract award, more time 
is taken defending against the almost inevitable protest from 
the losing bidder. Add to that another 3 years or so to develop 
and actually produce the equipment and it is not hard to see 
why the FAA is often fielding equipment that is already 
technically obsolete.
    \21\ Corporation Study, Supra Note 15, at 100.
---------------------------------------------------------------------------
    Several statutes have been cited as being responsible for 
the slow procurement process. One is the Brooks Act which 
permits the losing bidder to protest the award. The FAA faces 
about 10 protests per year and wins about 90 percent of them. 
However, these protests take time and often stop the contract 
until the protest is resolved. Moreover, they create 
significant perverse incentives for FAA procurement officials. 
Rather than moving expeditiously to place new technology in the 
field, FAA officials must act slowly and carefully to ensure 
that they do not lose the bid protest.
    Another statute that has been cited as a problem is the 
Competition in Contracting Act of 1984 (P.L. 98-369, 98 Stat. 
1175). This was passed as Title VII of the Deficit Reduction 
Act of 1984 and amends various sections of the Federal Property 
and Administrative Services Act (40 U.S.C. 759 and 41 U.S.C. 
252, 253, 254), the Office the Federal Procurement Policy Act 
(41 U.S.C. 403), and the Procurement Protest System (31 U.S.C. 
35). The Competition in Contracting Act requires FAA to seek 
and evaluate bids from all interested firms. This applies even 
to specialized technology that FAA is often seeking. In many 
cases, there are only a few firms that can supply this 
technology. Nevertheless, this act requires FAA to use valuable 
time and resources dealing with other firms even though they 
may lack the qualifications or expertise needed to supply the 
required product.
    Many more examples were described in the August 1993 report 
(p. 10) of the National Commission to Ensure a Strong 
Competitive Airline Industry.
    The problems with the personnel system are much the same. 
FAA managers and employees must deal with 47,200 pages of 
personnel laws and regulations. The restrictions contained 
therein create an environment were it is impossible to recruit, 
pay, and reward employees properly. The result is that some FAA 
facilities have too many employees while others have too few. 
For example, it was reported that in recent bids for open 
controller positions, the Phoenix TRACON received 450 bids for 
four openings, while New York received 13 bids for 68 
openings.\22\
    \22\ ``Federal Times,'' October 23, 1995, at 8.
---------------------------------------------------------------------------
    Attempts have been made to deal with these problems by 
creating pay demonstration programs or providing incentives to 
employees through pay differentials. However, these programs 
are often too small. Those that have been adequate have either 
been eliminated or are threatened with elimination. Morale and 
productivity suffer as the pay demonstrations and differentials 
come under attack.
    The reported bill would deal with these problems by giving 
the agency the flexibility to develop its own procurement and 
personnel systems best suited to its unique mission. It would 
do this by exempting the agency from current procurement and 
personnel laws that hinder its flexibility. The FAA would have 
180 days to develop its new systems. The new programs would 
then have to be submitted Congress and there would be an 180-
day period for Congress to review them before they could be 
implemented.
    The reported bill gives the FAA dramatic new flexibility in 
the procurement and personnel areas. The Committee believes 
that those who work day-to-day under the current procurement 
and personnel rules should have the freedom in the first 
instance to design the new systems.
    However, this freedom is not without limitations. In 
addition to the Congressional review the reported bill also 
establishes procedures for consulting with private sector 
experts in procurement and personnel systems and for gaining 
input from its employees in developing the new personnel 
system. In addition, there are safeguards in the bill to 
prevent FAA managers from using their new flexibility to pay 
exorbitant salaries, bonuses, or per diem expenses.\23\ Thus, 
the bill strikes the proper balance between management 
flexibility and protection of the taxpayer's money.
    \23\ This seems especially important in light of recent 
revelations. See, for example, ``Washington Post,'' February 1, 1996, 
at A19, and ``Voluntary Separation Incentive Payments,'' Audit Report, 
Office of Inspector General, Department of Transportation, R6-FA-6-009, 
February 9, 1996.
---------------------------------------------------------------------------
    The Committee envisions FAA setting up systems that will 
allow it to operate in a more efficient and business-like 
manner. It should have the flexibility to hire and fire as in 
the private sector, to provide incentives for personnel to move 
to where they are most needed, and to provide them with the 
equipment they need to do the job. There should no longer be a 
need for separate statutory pay differentials that stand out as 
a target for budget cutters. Rather FAA should be able to pay 
employees in accordance with the job they do and the cost of 
living in the area that they do it. The procurement reforms 
alone should save the agency about $2.4 billion over 7 years.

                           management reform

    In the Committee's view, simply reforming procurement and 
personnel laws is not sufficient. Indeed, the General 
Accounting Office has testified that the primary reason for the 
cost overruns and delays is not those laws but rather 
inadequate management.\24\ We do not view this as a criticism 
of any particular manager at the FAA but rather as an 
indictment of the current structure under which they must 
operate. Accordingly, the reported bill reforms the management 
structure of the agency in two ways. First, it makes the FAA 
independent of DOT. Secondly, it replaces the Administrator 
with a Board and a Chief Executive Officer (CEO).
    \24\ Corporation Hearing, Supra Note 6, at 340.
---------------------------------------------------------------------------
    As noted above, the agency worked quite well during its 
previous period of independence. Almost all the former FAA 
Administrators, both from the independence and post-
independence eras, support an independent FAA now. The 
Committee's support for an independent FAA is not a matter of 
nostalgia. As former Administrator Halaby, on behalf of all 
living Administrators but one, stated:

          We are not saying, like ghosts of the FAA, we want to 
        go back to the past. Please don't understand our 
        testimony to mean that. We're saying it needs fixing 
        very badly, and that includes its culture. The best way 
        to improve that culture is to give it some additional 
        surge of flexibility, if not freedom. That enables the 
        Administrator to act like he was in charge of something 
        and make him feel he is responsible for something. Now 
        he has got overlords, he has got all kinds of 
        Lilliputian restraints on him that are standard for 
        every place else that doesn't have the unique features 
        of the FAA.\25\
    \25\ Id, at 336.

    What the former Administrators and others in the aviation 
community complain about is micro-management by DOT, often 
allegedly politically motivated. Making the FAA independent 
would eliminate this additional layer of bureaucratic review at 
DOT. That would give the FAA more responsibility and 
flexibility. It would streamline the administrative and 
regulatory process. And it would reduce bureaucracy by allowing 
DOT to eliminate the employee positions that are now devoted to 
overseeing FAA.
    While in theory, DOT was created to develop a coordinated 
transportation system, there is no evidence that it has 
actually fulfilled that role. Despite the sincere efforts of 
many DOT Secretaries, it is not clear that being part of DOT 
has provided much benefit to the aviation system.
    To the extent that a continued DOT role in aviation is 
important, the reported bill provides for that in several ways. 
The legislation would require FAA to submit its annual budget 
and certain rules to DOT so that the Department could analyze 
their impact on the national transportation system. If DOT 
found a problem, the FAA would have to respond to that. 
Moreover, the bill gives the DOT Secretary a seat on the 
Federal Aviation Board to ensure that the overall 
transportation perspective is considered in the FAA's 
deliberations.
    The Federal Aviation Board plays an important role in the 
legislative scheme of the bill. Three members of this Board 
would be appointed by the President and confirmed by the Senate 
for staggered seven-year terms. The Secretaries of Defense and 
Transportation would also serve on this Board as non-voting 
members. The Board would hire a CEO who would have the 
authority to run the day-to-day operations of the agency.
    The reported bill clearly delineates the responsibilities 
of the Board and the CEO. The Board is to be responsible for 
the major decisions and policy direction of the agency. It is 
not to micro-manage the day-to-day operations. The CEO, freed 
from many of the Administrator's current responsibilities by 
the Board, should be able to focus on the day-to-day operations 
including issuing rules in a timely fashion, getting the airway 
modernization program back on track, and ensuring that other 
decisions are made and that needed actions do not languish in 
the bureaucracy.
    The Board and CEO approach has several advantages over the 
current single Administrator structure. One of the key benefits 
is that it would provide agency continuity. Currently, FAA 
Administrators stay only about two years on average. By the 
time that person understands the agency and its problems, he or 
she tends to leave. In part, this problem would be solved by 
making the FAA independent thereby relieving the Administrator 
of the frustration of being second-guessed by the DOT 
bureaucracy. However, this does not prevent Administrators from 
leaving each time the presidency changes.
    Current law (49 U.S.C. 106(b)) provides a 5-year term for 
the Administrator. This is probably the minimum necessary.\26\ 
However, the problem with this approach is that there is no 
assurance that the Administrator will do a good job. If an 
Administrator turns out to be a disappointment, it will be very 
hard to replace him under current law.
    \26\ Id., at 339, 340 (statement of former FAA Administrator James 
Busey).
---------------------------------------------------------------------------
    The reported bill provides the proper balance. It permits 
the Board to hire the CEO for an indefinite period and it is 
expected that a CEO would stay for more than the current 2-year 
average or the 5 years provided in current law if he or she was 
doing a good job. However, if the CEO does a poor job, that 
person could easily be replaced by the Board. The staggered 7-
year terms of Board members and the appointment of the CEO for 
the long-term provide the needed agency continuity without 
sacrificing the ability to make changes at the top when 
necessary.
    Another advantage of the Board is that it provides the 
proper measure of political accountability. The current 
structure is often criticized because of the political 
interference by the DOT Secretary in the technical affairs of 
FAA. A politically appointed Board will make sure that FAA 
officials are accountable to the public. However, the fact that 
the Board members are appointed for seven years by different 
Presidents will ensure that the agency is not unreasonably 
buffeted by the political winds of the moment.
    Finally, the Board provides the proper level of oversight. 
The bill gives FAA important new freedoms. It is being made 
independent and being given significant flexibility in the 
areas of personnel, procurement, and funding. To ensure that 
the agency does not abuse this new freedom, it is important to 
have some degree of oversight. An agency that has allowed its 
modernization program to go billions over budget and way behind 
schedule, that has been unable to make important safety 
decisions in a timely fashion, and that has engaged in 
questionable training methods of its own employees,\27\ should 
not lightly be made independent without some oversight that is 
answerable to the American people. A politically appointed 
Board fulfills that role. DOT has not been able to do so.
    \27\ Id., at 326, 327.
---------------------------------------------------------------------------
    The Committee is confident that the management reforms 
described above will give the agency a more business-like 
structure and are both workable and constitutional. Today, 
there are about 30 independent agencies that are successfully 
managed by Boards.
    The Justice Department has nevertheless challenged this 
approach as an improper erosion of the President's ability to 
set policy and oversee decision-making with respect to critical 
areas of national concern. Citing Morrison v. Olson, 487 U.S. 
654 (1988), it is alleged that the fact that the Board members 
can only be removed for cause raises significant constitutional 
concerns if it were to preclude the President from dismissing 
the Board members for failure to carry out the President's 
policies.
    In Morrison, at 691, the Supreme Court stated that 
restrictions on the President's authority to remove are 
unconstitutional if they ``impeded the President ability to 
perform his constitutional duty'' to ensure that the laws are 
faithfully executed. However, it should be noted that, in the 
Morrison case, the Court found that the restrictions on removal 
of the independent counsel were, in fact, constitutional. This 
indicates that the President does not have absolute discretion 
to discharge at will subordinate officials whose functions 
include executive tasks.
    Indeed, there appears to be broad congressional authority 
over agency structure, Mistretta v. U.S., 488 U.S. 361 (1989). 
The Morrison and Mistretta cases establish a strong basis for 
the independent Board structure in the reported bill where, as 
here, the Board's functions are not part of the President's 
core constitutional responsibilities over defense and foreign 
relations. This view is buttressed by recent scholarship on the 
issue.\28\
    \28\ M. Rosenberg, ``Constitutionality of Establishing the Social 
Security Administration as an Independent Agency Headed By a 
Commissioner Who May Be Removed By the President Only for Cause'' (July 
27, 1994), (Memorandum of the American Law Division, Congressional 
Research Service, Library of Congress). See Revitalization Act Hearing, 
Supra Note 18, at 315.
---------------------------------------------------------------------------
    For example, a recent article in the Columbia Law Review 
concluded that recent Supreme Court rulings ``allow certain 
officials exercising important governmental responsibilities to 
be immunized from plenary presidential control.'' \29\ This 
could include, the article states, ``not merely the heads of 
such traditionally `independent' agencies as the FCC, FTC, and 
SEC, but also those of (for example) the EPA and some Cabinet 
departments as well.'' \30\ Only those instances where the 
functions are clearly committed by the Constitution to the 
President would an independent Board be improper. The two 
principal examples would be the State Department and the 
Defense Department.\31\ They could not be independent agencies 
run by a Board.
    \29\ Lawrence Lessig and Cass R. Sunstein, ``The President and 
Administration'', 94 Column L. Rev. 1 (1994).
    \30\ Id., at 118.
    \31\ Id., at 117.
---------------------------------------------------------------------------
    However, the independent FAA and its governing Board under 
the reported bill are not similar to the State or Defense 
Departments. They are not responsible for foreign affairs or 
military policy. While some of FAA's actions may sometimes 
affect areas of concern to the State or Defense Departments, it 
must consult with those agencies to ensure that its actions are 
consistent with Administration policy. Indeed, where issues of 
foreign or military policy arise, the reported bill retains 
responsibility for those in a Cabinet Department where 
officials can be removed at will by the President. See for 
example 49 U.S.C. 40103(d) as well as section 15(f)(4) of the 
reported bill dealing with navigation of foreign aircraft in 
the U.S.

                               financing

    The reported bill addresses the financing issue by taking 
the airport and airway trust fund (26 U.S.C. 9502) off budget. 
This trust fund, usually known as the aviation trust fund, was 
established in 1970. It is financed primarily by excise taxes 
on air passenger tickets, air cargo, and general aviation fuel. 
Its income is about $6 billion per year (plus about $770 
million in interest) and its cash balance as of January 1996 
was about $11 billion, $5 billion of which was uncommitted.
    The aviation trust fund fully finances the capital programs 
of the FAA, including airport improvement grants, modernization 
of air traffic control facilities and equipment, and research 
and development of this equipment. The trust fund is also 
permitted to finance about half of the FAA's salaries and 
expenses.
    The Committee strongly believes that the money airline 
passengers, shippers, aircraft owners, and other aviation users 
pay into the Trust Fund should be returned to them in the form 
of aviation infrastructure improvements. This was the promise 
to them when the trust fund was created. Failure to keep this 
promise is unfair to them now.
    Unfortunately, the current on-budget status of the trust 
fund provides no assurance that the money will be spent as 
promised. Under the present system, the trust funds are viewed 
by many as merely an accounting mechanism. Overall budget caps 
are imposed with no regard for the aviation revenue the trust 
fund receives or the pressing needs of the airport and airway 
system. This provides perverse incentives to spend less than is 
taken in so as to stay within the budget caps, make the general 
fund deficit appear smaller, or spend more on non-aviation 
projects. This has occurred in the past and has resulted in the 
large balances now in the fund.
    Taking the trust fund off budget would remove those 
incentives. It would remove trust fund spending from the budget 
caps and permit additional funding for aviation improvements as 
long as there were adequate balances in the fund. This should 
create a closer match between the income to the trust fund and 
the spending from the fund, which the Committee views as the 
most equitable outcome.
    Equally important, taking the trust fund off budget would 
provide a reliable stream of revenue to purchase the new 
equipment air traffic controllers need to do their job safely 
and efficiently. It could also provide the basis for meeting 
future infrastructure needs by leveraging the fund or creating 
other innovative financing mechanisms.
    The Committee has decided not to impose additional aviation 
user fees at this time. The argument for additional user fees 
is based on the assumptions that (1) FAA will need $59 billion 
between 1997 and 2002, (2) the trust fund will provide only $47 
billion, (3) there will be no general fund contribution, and 
(4) there is therefore a $12 billion funding shortfall that 
needs to be addressed.
    The Committee does not doubt that the FAA will need 
additional resources in future years. However, the extent of 
that need is not clear at this time. Indeed, only a few months 
before claiming it needed $59 billion, the FAA had suggested, 
in the context of its Federal Corporation proposal, that $50.3 
billion would be sufficient. We expect the personnel and 
procurement reforms in the reported bill will achieve 
significant savings. The Department of Transportation estimates 
the savings from the procurement reform at $2.4 billion over 7 
years.
    The Committee also believes that a continued general fund 
contribution is necessary and appropriate. Currently, the Trust 
Fund covers 70 percent of FAA's budget (100 percent of its 
capital budget and about 50 percent of its operating budget). 
The rest comes from the general fund. The general fund 
contribution to FAA's budget is justified by the services the 
agency provides to military and other government aircraft. The 
aviation industry contributes to the general fund through a 4.3 
cents per gallon fuel tax as well as personal and corporate 
income taxes. Moreover, given the important contributions that 
a safe and efficient air transportation system makes to our 
nation and its economy, it seems only fair that the general 
taxpayer bear some of the regulatory costs.
    Some of the concern about future FAA funding arises because 
the congressional budget resolution indicates that such funding 
will decrease. There are two reasons why this concern is 
unfounded: (1) when the aviation trust fund is taken off-budget 
and outside of the budget caps, trust fund revenues will 
primarily fund FAA, irrespective of the budget resolution 
constraints; and (2) the budget resolution is only a blueprint 
for future spending decisions. One cannot draw any firm 
conclusions from it as to the course of future appropriations 
for any particular agency. Indeed, given the importance of 
aviation to our nation, FAA funding may not be subject to the 
cuts imposed on other modes.
    However, even if a funding shortfall can be demonstrated, 
the Committee is reluctant to raise taxes or fees on aviation 
users while there are still billions of dollars in the aviation 
trust fund that are uncommitted and available to meet the 
needs. Also, any new fee structure could have a 
disproportionate impact on certain segments of the aviation 
industry. Such impacts are not well understood at this time and 
have great potential for economic dislocation.

                           Regulatory relief

    On April 7, 1993, in response to the financial crisis in 
the airline industry, Public Law 103-13 created the National 
Commission to Ensure a Strong Competitive Airline Industry. 
This Commission was bipartisan and chaired by former Virginia 
Governor Gerald Baliles.
    The Commission issued its report in August 1993.\32\ Among 
other things, it found that ``federal regulations impose a 
massive cumulative burden on airlines'' and ``have a direct and 
adverse impact on airlines' financial condition and the air 
transportation system.'' \33\ The Commission estimated the 
airlines' burden at $3.5 billion since 1984 plus $900 million 
to comply with airworthiness directives (which are similar to 
regulations) and $200 million to comply with security 
directives during the Persian Gulf crisis.
    \32\ ``The National Commission to Ensure a Strong Competitive 
Airline Industry'', Change, Challenge and Competition (1993).
    \33\ Id., at 10, 11.
---------------------------------------------------------------------------
    The Commission was critical of the fact that neither 
Congress nor Federal agencies know the magnitude of the total 
costs they impose on airlines and, indirectly, on air 
travelers. It noted that special interest groups create 
pressure to adopt regulatory measures which may be driven by 
the perceived ``crisis du jour'' without regard to the 
cumulative impact of such costs.\34\
    \34\ Id, at 11.
---------------------------------------------------------------------------
    Following the Commission's report, the Subcommittee on 
Aviation held a hearing on this problem.\35\ The Subcommittee 
heard many specific examples from airports, airlines, and small 
aviation businesses about the burden imposed by excessive 
regulation. For example, one witness testified about a security 
access rule that the FAA had estimated would cost $100 million 
but has, in fact, already cost more than $800 million.\36\
    \35\ ``Ways to Reduce Unfunded Federal Mandates and Regulatory 
Burdens on the Aviation Industry Without Affecting the Safety of the 
Traveling Public'': Hearings Before the Subcommittee on Aviation of the 
House Committee on Transportation and Infrastructure, 104-4, 104th 
Congress, 1st Session (February 1, 1995).
    \36\ Id, at 13.
---------------------------------------------------------------------------
    In aviation, the issue of safety is always paramount. 
Despite the publicity surrounding several crashes in 1994, air 
travel remains remarkably safe. In 1994, the fatal accident 
rate for major airlines was 0.053 per 100,000 departures and 
0.0008 per million miles flown. For commuters, the fatal 
accident rate was 0.097 per 100,000 departures and 0.006 per 
million miles flown.
    In no small measure, this excellent safety record is due to 
the strict Federal regulation to which airlines and other 
aviation businesses are subjected. However, trying to achieve 
even small additional improvements in aviation safety from now 
on could lead to very expensive new regulations. The Committee 
wants to ensure that the new independent FAA carefully 
considers both the costs and benefits of any major new 
regulations.
    Accordingly, the final element of the reported bill 
includes a provision requiring a cost-benefit analysis of new 
regulations that are likely to have compliance costs over $25 
million. There are already cost-benefit requirements in law or 
actively being considered by Congress that apply to all 
agencies. The cost-benefit provision in the reported bill is in 
addition to those and is designed specifically for aviation. It 
requires the FAA to consider factors that are peculiar to the 
aviation industry such as the impact of the regulation on air 
service. Expensive regulations could have a disproportionate 
effect on air service to small communities that are already 
complaining about service cutbacks and higher air fares.
    In addition to the required cost-benefit analysis, the 
reported bill also includes procedural requirements to ensure 
that regulatory actions are reasonable. These include 
requirements that (1) rules costing more than $10 million be 
submitted to the new Federal Aviation Board for review and (2) 
rules costing more than $25 million have an automatic 
termination date. A precise termination date is not specified 
in the legislation in recognition of the individual 
characteristics of each regulatory action. Obviously, however, 
the Committee would take a dim view of any FAA attempt to take 
advantage of this flexibility by establishing unreasonably long 
periods before a rule had to be reauthorized.

                       Section-by-Section Summary

Section 1. Short title

    Provides that the Act may be cited as the ``Federal 
Aviation Administration Revitalization Act of 1995''.

Section 2. Amendment of title 49

    States that the amendments are to Title 49 of the U.S. 
code.

Section 3. Establishment of Federal Aviation Administration

    Adds a new Chapter 13 to Subtitle II of Title 49 creating 
the new FAA.

              chapter 13--federal aviation administration

Section 1301

    Defines the key terms in the legislation.

Section 1311

    Establishes the FAA as an independent agency.

Section 1312

    Establishes the new Federal Aviation Board and describes 
its functions. The functions of the Board as follows:
          Hiring the Chief Executive Officer and approving the 
        hiring of other senior officers of the agency;
          Approval of large contracts;
          Approval of major rules;
          Issuance of AIP letters of intent;
          Approval of the agency's new personnel and 
        procurement systems;
          Approval of the agency's annual budget;
          Long-range and strategic planning;
          Representation of the agency at public events to the 
        extent practicable; and
          Other significant actions that the Board considers 
        appropriate.
    Paragraph (2) states which of the above functions the Board 
cannot delegate.
    Paragraph (3) continues current law (49 U.S.C. 106(f)) 
stating that the FAA shall not submit decisions for the 
approval of, and shall not be bound by, organizations 
established by executive order.
    Subsection (c) describes the members of the Board. There 
shall be 3 members appointed by the President and confirmed by 
the Senate. The DOT and DOD Secretaries shall be non-voting 
members of the Board.
    Subsection (d) sets forth the qualifications for membership 
on the Board and includes a conflict of interest provision. 
Members must represent the public interest and be knowledgeable 
in aviation. When they become members, they would have to 
divest any aviation business and leave any aviation lobbying 
organization to which they may have previously belonged.
    Subsection (e) gives the Board members a 7-year term and 
states that those terms shall be staggered.
    Subsection (f) sets forth the standards for removal of a 
Board member. They are the same as those for other Board 
members in the government. See for example 49 U.S.C. 1111(c) 
governing the NTSB.
    Subsection (g) states that the President selects the 
Chairman of the Board, subject to Senate confirmation, and sets 
the length of the Chairman's term except that it cannot be 
longer than the person's term as a Board member.
    Subsection (h) states that 2 members of the Board are a 
quorum. To avoid bringing the agency to a standstill in the 
event of two vacancies, the Board could follow the arrangement 
upheld in Railroad Yardmasters of America v. Harris, 721 F.2d 
1332 (D.C. Cir. 1983). In that case, anticipating the 
resignation of one of the two remaining members of the National 
Mediation Board, the two members delegated authority to act to 
the member who would remain. This approach would not be 
inconsistent with section 1312(b)(2) of the reported bill since 
that is only intended to restrict delegations from the Board to 
the staff, not delegations within the Board.
    Subsection (i) sets the pay of the Chairman at a level that 
now is about $133 thousand per year and of the other Members at 
a level that is now about $123 thousand per year.

Section 1313

    Describes the officers of the agency. The Chief Executive 
Officer (CEO) is appointed by the Board. The CEO is responsible 
for the day-to-day operation of the agency including hiring and 
firing employees, buying equipment, issuing rules, preparing 
the budget, awarding AIP grants, and other functions the Board 
considers appropriate. The CEO can be removed by the Board 
although the Board is discouraged from doing so. The Board 
shall set the salary of the CEO which could be higher or lower 
than that of the Board members. The CEO may hire other senior 
agency officials (who report directly to the CEO) and a chief 
counsel subject to the approval of the Board. In addition, the 
agency shall have an Inspector General. Also, the position of 
aircraft noise ombudsman is established within the agency. This 
person would be appointed by the Board and would serve as a 
liaison with the public on noise issues and must be consulted 
by the agency before it changes aircraft routes.

Section 1314

    Exempts the agency from existing personnel laws and 
requires it to develop a new personnel system within 6 months. 
This exemption and the new personnel system cannot take effect 
until 180 days after the new personnel plan is submitted to 
Congress. In developing this system, the agency is directed to 
consult with private sector management experts and to negotiate 
with its employees. The negotiations must be completed within 
90 days. Any disagreements between the agency and its employees 
over the new personnel management system must be submitted for 
mediation. If mediation does not resolve the disagreements, the 
agency shall submit its new personnel system to Congress 
together with any objections of its employees for Congress to 
resolve during the 180-day review period. All employee rights 
and union contracts are to remain in effect while the new 
personnel system is being developed. The new personnel system 
should permit the FAA to do the following:
          (A) Hire and fire as in the private sector;
          (B) Promote and pay employees based on merit;
          (C) Provide market-based salaries to the extent 
        possible under available budgets;
          (D) Provide incentives in order to staff facilities 
        that are difficult to staff;
          (E) Move personnel where they are most needed; and
          (F) Permit collective bargaining over the terms and 
        conditions of employment.
    Private sector experts are to evaluate the agency's plan 
and submit that evaluation to Congress.
    To ensure that the freedom provided by this section is not 
abused, the new personnel management system must include 
safeguards to ensure that travel, meal, lodging, and other 
incidental expenses of FAA employees are not excessive. In 
addition, although there is no cap on wages, before any agency 
employee is paid more than $133 thousand, Congress must be 
notified and 30 legislative days must have elapsed. Also, 
limits are placed on the percentage of employees that can be 
paid (excluding overtime) at or above the SES level and on the 
amount of raises or bonuses that the agency's top employees can 
receive in a year. Finally, before the agency contracts with a 
former agency employee, the Board must approve that contract as 
being essential to the agency's mission.
    Although the FAA is exempted from most personnel laws, it 
is specifically not exempted from existing laws on whistle-
blower protection, prohibiting strikes, prohibiting 
discrimination, and those laws relating to suitability, 
security, conduct, workmen's compensation, unemployment 
compensation, retirement, labor-management relations, life 
insurance, and health insurance.

Section 1315

    Describes the Management Advisory Committee. There will be 
17 members, four appointed by Congress and 13 appointed by the 
Board. Of the 13 appointed by the Board, 12 will represent 
specific interests such as passengers, employees, airlines, 
airports, and general aviation. The four Congressional 
appointees and one Board appointee need not represent any 
specific interest or could represent interests not otherwise 
specified in the law. Desirable selections for these open 
positions would include a military person, a representative of 
a small aviation business, or an additional FAA employee. The 
Committee members appointed by Congress serve two years and 
those appointed by the Board serve for 3 years. The Committee 
would meet quarterly and provide advice to the FAA. The 
Committee would be entitled to receive internal FAA documents 
other than those containing proprietary information or 
documents relating to on-going litigation such as enforcement 
actions. The Committee members may receive per diem. The 
Federal Advisory Committee Act applies except for the provision 
that would terminate the Committee after 2 years.

Section 1316

    States that all the functions, duties, and powers of the 
current FAA are carried forward to the new independent agency.

Section 1331

    Sets forth those functions that are to be transferred to 
the independent FAA. Basically all aviation functions are 
transferred except those that DOT got when CAB sunset, those 
relating to international aviation, and those exercised by the 
DOT Director of Intelligence and Security. Also states that FAA 
can perform those DOT functions that are incidental or helpful 
to it in carrying out the transferred functions. That would 
include, for example, many of the functions in 49 U.S.C. 
Chapter 3.
    Specifically, this section gives the FAA the responsibility 
for the following:
          (1) The annual report on its aviation activities;
          (2) Drug testing of its own employees;
          (3) Providing drug test results to the National 
        Transportation Safety Board (NTSB) when requested;
          (4) Investigating certain aviation accidents;
          (5) Participating in accident investigations;
          (6) Responding to safety recommendations of the NTSB;
          (7) Appealing certain orders of the NTSB;
          (8) Being responsible for aviation safety;
          (9) Overseeing airmen such as pilots and mechanics;
          (10) Overseeing the safe use of airspace;
          (11) Promoting civil aeronautics;
          (12) Being involved in the certain aspects of 
        international negotiations;
          (13) Being consulted by the military about military 
        deviation from air traffic regulations;
          (14) Receiving air traffic responsibilities and 
        transferring them to the Defense Department during a 
        war;
          (15) Operating schools to train aviation personnel 
        for both itself and for other Departments and nations;
          (16) Issuing certain exemptions;
          (17) Acquiring goods and services;
          (18) Undertaking certain special procurements;
          (19) Entering into certain multi-year procurements;
          (20) Providing assistance to foreign aviation 
        authorities and undertaking certain other 
        administrative matters;
          (21) Issuing certain reports;
          (22) Withholding information in certain cases;
          (23) Authorizing airports to assess a passenger 
        facility charge (PFC);
          (24) Performing research to improve security;
          (25) Administering slots at the four high-density 
        airports;
          (26) Registering and recording aircraft ownership;
          (27) Administering the war risk insurance program;
          (28) Administering air traffic control facilities and 
        equipment;
          (29) Issuing and revoking certificates to airmen, 
        aircraft, and airports and taking other actions to 
        promote safety;
          (30) Acting to improve aviation security;
          (31) Overseeing aviation drug and alcohol testing 
        programs;
          (32) Imposing certain fees;
          (33) Taking enforcement actions;
          (34) Imposing civil penalties;
          (35) Imposing penalties on someone who threatens an 
        aircraft;
          (36) Imposing penalties for carrying a gun on an 
        aircraft;
          (37) Subjecting aircraft to liens and seizures;
          (38) Imposing penalties for general aviation aircraft 
        registration violations and for drug smuggling;
          (39) Imposing penalties for interfering with air 
        navigation;
          (40) Being subject to penalties for the unlawful 
        disclosure of information;
          (41) Requiring persons to testify or produce records 
        with respect to its aviation safety duties;
          (42) Imposing penalties for operating an aircraft 
        without lights while smuggling drugs;
          (43) Imposing criminal penalties in certain cases;
          (44) Preventing aircraft piracy;
          (45) Administering the Airport Improvement Program 
        (AIP);
          (46) Overseeing certain facilities in foreign 
        nations;
          (47) Overseeing efforts to reduce aircraft noise;
          (48) Funding aviation facilities and research; and
          (49) Overseeing the buy-American program.

Section 1332

    Addresses the issuance of regulations. It requires that the 
Board approve significant rules (those with an impact over $10 
million) except that, in an emergency, the Chief Executive 
Officer can issue these rules subject to later Board approval. 
DOT review of FAA rules is strictly limited. FAA must send a 
proposed or final rule to DOT for review for a 5-day period to 
determine whether it might have an impact on other modes of 
transportation or on DOT's remaining aviation responsibilities 
including its national defense responsibilities. If it would, 
DOT would have an additional 45 days to assess the impact. DOT 
may make recommendations to FAA to minimize the adverse impact. 
If FAA does not accept the recommendation, it must explain why. 
The above procedure would not apply to rules pertaining solely 
to navigational aids, airspace designations, approach 
procedures, or to rules required to implement the new personnel 
and procurement systems. DOT review may be suspended in an 
emergency. Emergency is defined using language similar to the 
``good cause'' exception in section 553 of the Administrative 
Procedure Act. Finally, the section states that any rule with 
an impact of more than $25 million, and any advisory circular 
tied to that rule, must contain a sunset date. This does not 
prevent the rule or advisory circular from being reissued.

Section 1333

    States that agency actions are legally final.

Section 1334

    Lists the procurement laws from which the agency is 
exempted and directs the FAA to develop its own procurement 
system within 6 months. These exemptions and the new 
procurement system would not take effect until the 180 days 
after the new system is submitted to Congress for review. If a 
dispute over a contract arises, the date the contract is signed 
will govern whether the dispute is resolved under the old law 
or under the new procurement system. The FAA must consult with 
private sector procurement experts in developing the new 
system. The private sector experts that help develop the system 
should also evaluate that system and submit that evaluation to 
Congress. The goals of the new system are (1) ensuring that 
services are procured and new equipment is installed quickly 
without sacrificing fairness and protection against waste and 
fraud and (2) ensuring that the civilian and military air 
traffic control equipment can work together.
    The section also states that contracts over $100 million 
must be approved by the Board. For contracts over $250 million, 
Congress must be notified and 30 days must elapse before the 
agency can sign it. This would not require the agency to delay 
the award of a contract but merely to anticipate the 
approximate date of the award and notify Congress at least 30 
days in advance.

Section 1335

    Continues the same judicial review and procedural 
requirements as currently exist.

Section 4. Budget

    Requires the agency to prepare a budget which must be 
approved by the Board. FAA must submit its budget to DOT and 
DOT may make recommendations to ensure consistency with the 
national transportation system and DOT's aviation 
responsibilities. Thirty days before submitting the budget to 
DOT, the FAA must give a draft copy to the management advisory 
committee for comment. The FAA must submit its budget to 
Congress at the same time that it submits it to the President 
or OMB. It also requires the budget to include the following:
          (A) Budget requests and Aviation Trust Fund estimates 
        for the next 4 years;
          (B) A numerical ranking, by degree of importance, of 
        the agency's facilities and equipment projects so that 
        Congress will know where to concentrate funding if 
        budgets are tight. In ranking the importance of 
        projects, the FAA should consider both the needs of air 
        carriers and general aviation;
          (C) The number of man-years worked by contractors for 
        the agency with a comparison to previous years;
          (D) Any modifications made to the budget that were 
        requested by DOT; and
          (E) If the DOT recommendations were not accepted, an 
        explanation why.

Section 5. Regulations

    This section requires that for rules with annualized 
compliance costs of more than $25 million, the FAA must, in 
addition to other requirements, do an analysis of the 
following:
          (A) The benefits of the rule and the number of deaths 
        and nature and number of injuries it will prevent;
          (B) The number of aircraft, airports, or employees 
        affected by the rule;
          (C) The cost of the rule including effects on 
        competition or disruption of air service; and
          (D) Alternative means of achieving the rule's 
        objectives.
    The analysis required by this section can be waived in an 
emergency. This section does not apply to advisory circulars.

Section 6. Funding

    Takes the aviation trust fund off-budget and includes 
safeguards against deficit spending, consistent with H.R. 842. 
The language of this section tracks the language used to take 
the Social Security Trust Funds off-budget in section 13301 of 
the Omnibus Budget Reconciliation Act of 1990. Specifically, 
the language provides that all receipts and disbursements of 
the aviation trust fund shall not be included in (1) the budget 
of the U.S. government as submitted by the President, or (2) 
the congressional budget (including allocations of budget 
authority and outlays provided therein). Additionally, the 
receipts and disbursements are exempted from any general budget 
limitations imposed by statute. The effect of this language is 
to remove the trust fund from (1) calculations of the on-budget 
deficit, (2) congressional budget resolutions, including 
spending allocations provided to committees, and (3) spending 
points of order under the Budget Act.
    This section also duplicates the automatic spending 
safeguards provided by the so-called Byrd Rule in the Highway 
Trust Fund. Specifically, if the FAA, in consultation with the 
Secretary of Treasury, determines that fund balances and 
expected receipts do not cover unfunded aviation 
authorizations, those authorizations are reduced on a pro-rata 
basis to cover the shortfall.
    The intent of this provision is to allow the FAA to spend 
the revenues taken in plus any uncommitted surplus.

Section 7. Inspector General

    Brings the new agency under the Inspector General Act.

Section 8. Passenger facility charge

    Deals with two matters involving the passenger facility 
charge (PFC). Subsection (a) requires FAA to answer, within 75 
days of enactment, the petition seeking an increase in the fee 
airlines retain when collecting PFCs. The section provides a 
prod for action but takes no position on the merits. Subsection 
(b) requires FAA to complete the review of the PFC program 
which was required in 1994 within 75 days of enactment. This 
section is designed to highlight the frustration of the 
aviation community with FAA's often slow response to industry 
concerns.

Section 9. Innovative financing

    Requries the Federal Aviation Board to establish a panel to 
review and report on innovative financing mechanisms for 
funding infrastructure development and the operations of the 
FAA.

Section 10. Transfers

    Transfers personnel and property from the old agency to the 
new one.

Section 11. Savings provision

    Provides that all orders, rules, contracts, certificates, 
licenses, applications, proceedings, etc. shall continue in 
effect at the new FAA. This section also provides that the 
Administrator becomes the Chief Executive Officer on the 
effective date if the Board has not appointed one by that date.

Section 12. Laws and regulations

    Continues all laws and rules and makes them applicable to 
the new FAA.

Section 13. Termination

    Terminates the old FAA.

Section 14. Personnel reductions

    Terminates the 200 employee positions in DOT that were 
responsible for overseeing FAA.

Section 15. Conforming changes

    Contains the conforming amendments needed to reflect the 
separation of FAA from DOT and the replacement of the FAA 
Administrator with the Federal Aviation Board and Chief 
Executive Officer (CEO).
    Specifically--
    Subsection (a) removes provisions from section 106(k) of 
existing law but retains the current Civil Aeromedical 
Institute.
    Subsection (b) revises the duties and powers of DOT to 
reflect FAA's assumption of many of those responsibilities in 
aviation matters.
    Paragraph (b)(1) removes aircraft noise from DOT's purview. 
Responsibility for that will rest solely with the FAA.
    Paragraph (b)(2) gives FAA responsibility for considering 
the impact on wildlife and historic sites when developing or 
approving aviation programs and projects.
    Paragraph (b)(3) requires FAA to file the annual report on 
aviation activities formerly submitted by DOT.
    Paragraph (b)(4) requires the FAA to continue to cooperate 
with the military as DOT has done.
    Paragraph (b)(5) removes FAA from the coverage of this 
section on judicial review. FAA will be covered in this regard 
by new section 1335.
    Paragraph (b)(6) deletes the reference to the FAA in 
current section 352. New section 1316 takes the place and 
serves the same purpose.
    Paragraph (b)(7) gives FAA responsibility for drug testing 
of its own employees.
    Subsection (c) set forth the functions of FAA.
    Paragraph (c)(1) revises the law governing the relationship 
between the National Transportation Safety Board (NTSB) and DOT 
involving such matters as providing information to the Board, 
participation in accident investigations, response to safety 
recommendations, and judicial review to reflect the fact that 
FAA supplants DOT where aviation accidents or certificates are 
involved.
    Paragraph (c)(2) places the new FAA's CEO on the Intermodal 
Transportation Advisory Board in place of the current FAA 
Administrator.
    Paragraph (c)(3) revises the provisions in current law on 
air commerce and safety. The FAA is directed to consider the 
policies set forth in current section 40101 in making decisions 
and to consult with the Architectural and Transportation 
Barriers Compliance Board before taking action that will affect 
accessibility. State and DOT are directed to consult with FAA 
on international air transportation matters. This paragraph 
clarifies the division of responsibilities with respect to the 
transportation of hazardous materials by air. DOT would still 
issue rules and exemptions but only if the FAA does not 
disapprove. FAA would be responsible for enforcement actions. 
This paragraph also makes clear that the FAA is responsible for 
the passenger facility charge (PFC) program.
    Paragraph (c)(4) requires the DOT to consult with FAA, at 
least informally, before authorizing the navigation of foreign 
civil aircraft in this country.
    Paragraph (c)(5) gives FAA responsibility for managing 
slots at the four slot-controlled airports. However, to the 
extent that this would involve matters involving the 
jurisdiction or expertise of DOT, such as issues affecting 
essential air service at small communities or questions of 
exceptional circumstances or the public interest, the FAA 
should look to DOT for guidance.
    Paragraph (c)(6) makes conforming changes to the chapter on 
registering and recording aircraft.
    Paragraph (c)(7) gives the FAA responsibility for the war 
risk insurance program.
    Paragraph (c)(8) revises the chapter on facilities, 
personnel, and research.
    Paragraph (c)(9) revises the chapter on safety regulation. 
Responsibility for submission of the annual safety enforcement 
report is transferred from DOT to the Federal Aviation Board.
    Paragraph (c)(10) assigns responsibility for aviation 
security to the FAA. The deletion of the reference to the 
Assistant Administrator for Civil Aviation Security in 
subparagraph (c)(10)(E) of this section should not be 
misconstrued as a lack of concern for aviation security issues. 
Rather, it is designed to conform to section 1313(b) above 
governing the appointment of senior officers of the agency. The 
Committee would expect one of those officers to have civil 
aviation security duties similar to, or the same as, the 
current Assistant Administrator.
    Paragraph (c)(11) makes conforming changes to the chapter 
on alcohol and drug testing.
    Paragraph (c)(12) makes conforming changes in the chapter 
authorizing the collection of fees in certain cases.
    Paragraph (c)(13) revises the chapter on investigations. 
Basically, DOT will continue to handle complaints in aviation 
matters within its areas of responsibility and FAA will handle 
matters involving aviation safety and other areas for which it 
has been assigned responsibility.
    Paragraph (c)(14) deals with penalties. FAA may impose 
penalties in its areas of jurisdiction and DOT may impose 
penalties in its areas. Only FAA, not DOT, may impose penalties 
for a hazardous material violation related to transportation by 
air.
    Paragraph (c)(15) makes a conforming change in section 
46505.
    Paragraph (c)(16) places responsibility for the Airport 
Improvement Program (AIP) in the hands of the FAA. Letters of 
Intent (LOIs) under this program could be issued only by the 
Federal Aviation Board. This is necessary to ensure strict 
financial oversight of the LOI portion of the program.
    Paragraph (c)(17) gives the FAA the responsibility for 
international airport facilities that was formerly held by DOT.
    Paragraph (c)(18) places responsibility for aircraft noise 
abatement with the FAA.
    Paragraph (c)(19) makes conforming changes in Chapter 481.
    Paragraph (c)(20) gives FAA responsibility under the Buy-
American program.
    Paragraph (c)(21) provides that FAA, rather than DOT, will 
oversee commercial space launch activities. This is in 
furtherance of the transfer made by Public Law 104-50 (109 
Stat. 440, November 15, 1995).
    Subsections (d) through (l) make conforming changes in non-
aviation statutes where references to FAA, FAA officials, or 
responsibilities of the new FAA appear.

Section 16. References

    States that any reference in law or other official document 
to a function of DOT, that will now be performed by FAA, shall 
now be considered a reference to the new FAA.

Section 17. Effective date

    Makes this legislation effective 90 days after enactment 
except the Board should be appointed as soon as possible and 
section 8 takes effect in accordance with the deadlines in that 
section. Also, FAA employees now receiving differential pay 
would continue to receive that pay until the new personnel 
system takes effect. At that time, the Committee anticipates 
that the new salary structure developed by the FAA would 
compensate employees fairly without the need for separate 
statutory pay differential categories.

                    Hearings and Legislative History

    The Subcommittee on Aviation held hearings on H.R. 2276 on 
September 28 and October 11, 1995.
    H.R. 2276 was introduced on September 7, 1995. On October 
26, 1995 the Subcommittee reported the bill, with amendments, 
to the full Committee on Transportation and Infrastructure. On 
November 1, 1995, the Committee on Transportation and 
Infrastructure ordered the bill reported, with amendments, by 
voice vote.

            Committee Oversight Findings and Recommendations

    With respect to the requirements of clause 2(l)(3)(A) of 
rule XI of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

                     Inflationary Impact Statement

    Pursuant to clause 2(l)(4) of the rule XI of the Rules of 
the House of Representatives, the Committee estimates that the 
enactment of H.R. 2276 will have no significant inflationary 
impact on prices and costs in the operation of the national 
economy.

                        Costs of the Legislation

    Clause 7 of rule XIII of the rules of the House of 
Representatives does not apply where a cost estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 403 of the Congressional Budget Act of 
1974 has been timely submitted prior to the filing of the 
report and is included in the report. Such a cost estimate is 
included in this report.

                     Compliance With House Rule XI

    1. With respect to the requirement of clause 2(l)(3)(B) of 
rule I of the Rules of the House of Representatives, and 
section 308(a) of the Congressional Budget Act of 1974, the 
Committee references the report of the Congressional Budget 
Office included below.
    2. With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 2276.
    3. With respect to the requirement of clause 2(l)(3)(C) of 
rule XI of the Rules of the House of Representatives and 
section 403 of the Congressional Budget Act of 1974, the 
Committee has received the following cost estimate for H.R. 
2276 from the Director of the Congressional Budget Office.

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, November 22, 1995.
Hon. Bud Shuster,
Chairman, Committee on Transportation and Infrastructure, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2276, the Federal 
Aviation Administration Revitalization Act of 1995.
    Enacting H.R. 2276 would not affect direct spending or 
receipts. Therefore, pay-as-you-go procedures would not apply 
to the bill.
    If you wish further details on this estimate, we will be 
pleased to provide them.
            Sincerly,
                                              James L. Blum
                                   (For June E. O'Neill, Director.)
    Enclosure.

               Congressional Budget Office Cost Estimate

    1. Bill number: H.R. 2276.
    2. Bill title: Federal Aviation Administration 
Revitalization Act of 1995.
    3. Bill status: As ordered reported by the House Committee 
on Transportation and Infrastructure on November 1, 1995.
    4. Bill purpose: H.R. 2276 would make the Federal Aviation 
Administration (FAA) an independent agency rather than an 
agency within the Department of Transportation (DOT). The FAA 
would be run by a board of directors and a chief executive 
officer. Specifically, the bill would: take the Airport and 
Airway Trust Fund off-budget; direct the FAA to develop and run 
new personnel and procurement systems that would be exempted 
from many federal regulations and requirements; create a 
Management Advisory Committee to provide advice and counsel to 
the FAA on management issues; establish a select panel to 
review innovative funding mechanisms for the FAA, including 
financial partnerships with private entities, the authority to 
spend funds outside the appropriations process, and the 
authority to borrow funds; revise the FAA's regulatory 
procedures and require all rulemaking proceedings for safety 
regulations that have an annual compliance cost of greater than 
$25 million to include a cost-benefit analysis; and direct the 
Secretary of Transportation to terminate 200 employee positions 
within the Office of the Secretary to reflect the reduced 
responsibilities of the office.
    5. Estimated cost to the Federal Government: Taking the 
Airport and Airway Trust Fund off-budget would not directly 
affect the federal budget in total; aggregate spending and 
revenues of the government would not be changed by this 
reclassification. However, taking the trust fund off-budget 
could lead to additional federal spending by weakening the 
budgetary constraints that apply to spending from the trust 
fund. CBO cannot estimate the amount of this possible impact, 
largely because it would be determined by future legislation.
    Other provisions in the bill could affect the amounts of 
future appropriations for the FAA. Additional costs of less 
than $5 million could be incurred for the administrative tasks 
of developing new personnel and procurement procedures, running 
the Management Advisory Committee and the innovative financing 
panel, and carrying out additional rulemaking activities. The 
FAA may also incur added costs by paying higher wages than 
permitted under the current personnel system, but could achieve 
some savings from procurement reforms and from a reduction in 
the number of personnel. Because the potential impact of these 
provisions is very uncertain and some of the changes would 
occur under current law, CBO cannot estimate the overall impact 
on FAA spending. Any change in total FAA spending would be 
subject to future appropriation action.
    Taking the trust fund off-budget: This bill would take the 
Airport and Airway Trust Fund off-budget and may exempt trust 
fund spending from the discretionary caps, pay-as-you-go 
procedures, and other Congressional budget controls (including 
the budget resolution, 602 allocations, and reconciliation 
instructions). However, it is unclear whether the bill would 
exempt the spending from these budgetary enforcement 
procedures. Even though the language that classifies Social 
Security spending off-budget is much more specific than the 
provisions in H.R. 2276, the administrative expenses of the 
Social Security Administration are still subject to pay-as-you-
go procedures and other budgetary controls.
    By itself, taking programs off-budget does not change total 
spending of the federal government and does not affect spending 
or revenue estimates for Congressional scorekeeping purposes. 
However, if this provision does exempt aviation trust fund 
spending from the budgetary control and enforcement procedures 
that apply to most other programs, aviation spending could 
increase significantly. The amount of any such increase is very 
uncertain because it would depend on future actions by both 
authorizing and appropriations committees. Competing factors 
would come into play. On the one hand, the Congress would be 
free to spend more money because the current budgetary controls 
would no longer apply. On the other hand, the Congress plans on 
balancing the overall federal budget 2002, and spending for 
these programs would still count in determining whether the 
budget is balanced. CBO has no basis for predicting the likely 
path of spending actions under H.R. 2276.
    At the end of fiscal year 1995, the cash balance of the 
Airport and Airway Trust Fund was about $11 billion, of which 
about $5 billion was uncommitted. In addition, under CBO's 
baseline assumptions, the trust fund's cash balance would 
continue to grow. Because the FAA is in great need for 
additional funding to modernize the air traffic control system, 
it is possible that the Congress would decide to make some of 
all of the $5 billion available for obligation.
    The bill also would establish a rule similar to the Highway 
Trust Fund's Byrd rule for the Airport and Airway Trust Fund. 
The Byrd rule is an attempt to preserve the solvency of the 
highway account of the Highway Trust Fund by comparing 
unexpended budget authority to the fund's cash balance and two 
years of future revenue. If the unexpended budget authority is 
greater than the cash balance plus projected revenues, the 
budget authority is reduced. The rule that H.R. 2276 would 
establish compares the amount of appropriations that has been 
authorized but not yet appropriated to the fund's unobligated 
cash balance plus one year of revenue. If the estimated 
balances do not pass this proposed test, the authorizations of 
appropriations from the Airport and Airway Trust Fund would be 
reduced. Such a rule would be ineffective in preserving the 
trust fund's solvency, however, because unlike authorizations 
for the Highway Trust Fund, an authorization of appropriations 
from the Airport and Airway Trust Fund does not constitute 
budget authority.
    Personnel and procurement reform: The process of developing 
the new personnel and procurement systems would cost the 
federal government less than $5 million over the next year. In 
addition, exempting the FAA from personnel requirements and 
allowing the agency to offer wages that are competitive in the 
private market, in order to retain its most qualified 
employees, could significantly increase the FAA's personnel 
costs. However, H.R. 2276 could reduce the FAA's costs by 
streamlining the agency's acquisition process through 
procurement reform. Streamlining the process could lead to 
savings in administrative, operation, and maintenance costs. 
CBO cannot estimate the budgetary impact of these reforms 
because we do not know how they would be carried out or if they 
would achieve their goals. For example, the General Accounting 
Office has reported that the FAA's acquisition problems have 
less to do with the procurement process than with the extremely 
complex systems that it has tried to acquire. Finally, 
personnel and procurement reforms have already been passed by 
the Congress; the 1996 transportation appropriations bill 
recently enacted (Public Law 104-50) includes essentially the 
same reforms as contained in H.R. 2276.
    H.R. 2276 would provide for the development of the 
personnel management system for the FAA, in consultation and 
negotiation with representatives of the administration's 
employees. The bill would require these negotiations to be 
completed 90 days after enactment. If no agreement is reached 
within 90 days, the amendment would require the use of the 
Federal Mediation and Conciliation Service (FMCS) to reach an 
agreement. The FMCS is an independent agency of the federal 
government which performs mediation, arbitration, and 
alternative dispute resolution services for both federal and 
private disputes. In fiscal year 1995, $31 million was 
appropriated to this agency, and the agency conducted over 
22,000 mediation conferences. CBO estimates that the additional 
mediation required by H.R. 2276 would cost less than $500,000.
    Administrative costs: H.R. 2276 would require that FAA to 
establish a Management Advisory Committee and an innovative 
financing panel and to carry out additional rulemaking 
activities. These requirements would cost about $1 million 
annually.
    Termination of employee positions at DOT: The bill would 
require the Secretary of Transportation to terminate 200 
employee positions within the Office of the Secretary to 
reflect reductions in the office's aviation responsibilities, 
primarily oversight of the FAA. The Office of the Secretary is 
already planning on reducing the number of its employees by 
almost 300 positions in fiscal year 1996 as part of a DOT 
reorganization effort. The department believes that it can 
incorporate the 200-position reduction required by H.R. 2776 
into the planned reduction and would not have to lay off any 
additional employees. In addition, the FAA--as an independent 
agency--may need additional employees to carry out activities 
previously conducted by the department, such as activities 
required by the Inspector General Act. If DOT were to eliminate 
additional positions, the government would save about $60,000 
annually per employee because of reduced salary, benefits, and 
overhead costs. However, in the first year, these savings would 
be offset by severance, annual leave, and other costs of about 
$25,000 for each employee laid off.
    6. Pay-as-you-go considerations: None.
    7. Estimated cost to State and local governments: None.
    8. Estimate comparison: None.
    9. Previous CBO estimate: None.
    10. Estimate prepared by: John Patterson and Christi 
Hawley.
    11. Estimate approved by: Robert A. Sunshine, for Paul N. 
Van de Water, Assistant Director for Budget Analysis.

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, February 26, 1996.
Hon. Bud Shuster,
Chairman, Committee on Transportation and Infrastructure, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: In accordance with the Unfunded Mandates 
Reform Act of 1995, the Congressional Budget Office has 
reviewed H.R. 2276, the Federal Aviation Administration 
Revitalization Act of 1995, as ordered reported by the House 
Committee on Transportation and Infrastructure on November 1, 
1995.
    H.R. 2276 would make the Federal Aviation Administration 
(FAA) an independent agency rather than an agency within the 
Department of Transportation. The bill would direct the FAA to 
develop and run new personnel and procurement systems that 
would be exempted from many federal regulations and 
requirements. H.R. 2276 would also take the Airport and Airway 
Trust Fund off-budget.
    H.R. 2276 contains no intergovernmental or private sector 
mandates as defined in Public Law 104-4 and would have no 
direct budget impact on state, local, or tribal governments.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact for state, 
local, and tribal issues is Karen McVey. The contact for 
private sector issues is Jean Wooster.
            Sincerely,
                                         June E. O'Neill, Director.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

                      TITLE 49, UNITED STATES CODE

          * * * * * * *

                SUBTITLE I--DEPARTMENT OF TRANSPORTATION

          * * * * * * *

                        CHAPTER 1--ORGANIZATION

                    [Effective September 30, 1996.]

Sec.
101.  Purpose.
     * * * * * * *
[106.  Federal Aviation Administration.]
     * * * * * * *

 [The following amendments take effect on the date of enactment of the 
                                 Act.]

Sec. 106. Federal Aviation Administration

  [(a) The Federal Aviation Administration is an administration 
in the Department of Transportation.
  [(b) The head of the Administration is the Administrator. The 
Administration has a Deputy Administrator. They are appointed 
by the President, by and with the advice and consent of the 
Senate. When making an appointment, the President shall 
consider the fitness of the individual to carry out efficiently 
the duties and powers of the office. The Administrator reports 
directly to the Secretary of Transportation. The term of office 
for any individual appointed as Administrator after the date of 
the enactment of this sentence shall be 5 years.
  [(c) the Administrator must--
          [(1) be a citizen of the United States;
          [(2) be a civilian; and
          [(3) have experience in a field directly related to 
        aviation.
  [(d)(1) The Deputy Administrator must be a citizen of the 
United States and have experience in a field directly related 
to aviation. An officer on active duty in an armed force may be 
appointed as Deputy Administrator. However, if the 
Administrator is a former regular officer of an armed force, 
the Deputy Administrator may not be an officer on active duty 
in an armed force, a retired regular officer of an armed force, 
or a former regular officer of an armed force.
  [(2) An officer on active duty or a retired officer serving 
as Deputy Administrator is entitled to hold a rank and grade 
not lower than that held when appointed as Deputy 
Administrator. The Deputy Administrator may elect to receive 
(A) the pay provided by law for the Deputy Administrator, or 
(B) the pay and allowances or the retired pay of the military 
grade held. If the Deputy Administrator elects to receive the 
military pay and allowances or retired pay, the Administration 
shall reimburse the appropriate military department from funds 
available for the expenses of the Administration.
  [(3) The appointment and service of a member of the armed 
forces as a Deputy Administrator does not affect the status, 
office, rank, or grade held by that member, or a right or 
benefit arising from the status, office, rank, or grade. The 
Secretary of a military department does not control the member 
when the member is carrying out duties and powers of the Deputy 
Administrator.
  [(e) The Administrator and the Deputy Administrator may not 
have a pecuniary interest in, or own stock in or bonds of, an 
aeronautical enterprise, or engage in another business, 
vocation, or employment.
  [(f) The Secretary of Transportation shall carry out the 
duties and powers, and controls the personnel and activities, 
of the Administration. The Secretary may not submit decisions 
for the approval of, nor be bound by the decisions or 
recommendations of, a committee, board, or organization 
established by executive order.
  [(g) Duties and Powers of Administrator.--(1) Except as 
provided in paragraph (2) of this subsection, the Administrator 
shall carry out--
          [(A) duties and powers of the Secretary of 
        Transportation under subsection (f) of this section 
        related to aviation safety (except those related to 
        transportation, packaging, marking, or description of 
        hazardous material) and stated in sections 308(b), 
        1132(c) and (d), 40101(c), 40103(b), 40106(a), 40108, 
        40109(b), 40113(a), (c), and (d), 40114(a), 40119, 
        44501(a) and (c), 44502(a)(1), (b), and (c), 44504, 
        44505, 44507, 44508, 44511-44513, 44701-44716, 
        44718(c), 44721(a), 44901, 44902, 44903(a)-(c) and (e), 
        44906, 44912, 44935-44937, and 44938(a) and (b), 
        chapter 451, sections 45302, 45303, 46104, 46301(d) and 
        (h)(2), 46303(c), 46304-46308, 46310, 46311, and 46313-
        46316, chapter 465, and sections 47504(b) (related to 
        flight procedures), 47508(a), and 48107 of this title; 
        and
          [(B) additional duties and powers prescribed by the 
        Secretary of Transportation.
  [(2) In carrying out sections 40119, 44901, 44903(a)-(c) and 
(e), 44906, 44912, 44935-44937, 44938(a) and (b), and 48107 of 
this title, paragraph (1)(A) of this subsection does not apply 
to duties and powers vested in the Director of Intelligence and 
Security by section 44931 of this title.
  [(h) Section 40101(d) of this title applies to duties and 
powers specified in subsection (g)(1) of this section. Any of 
those duties and powers may be transferred to another part of 
the Department only when specifically provided by law or a 
reorganization plan submitted under chapter 9 of title 5. A 
decision of the Administrator in carrying out those duties or 
powers is administratively final.
  [(i) The Deputy Administrator shall carry out duties and 
powers prescribed by the Administrator. The Deputy 
Administrator acts for the Administrator when the Administrator 
is absent or unable to serve, or when the office of the 
Administrator is vacant.
  [(j) There is established within the Federal Aviation 
Administration an institute to conduct civil aeromedical 
research under section 44507 of this title. Such institute 
shall be known as the ``Civil Aeromedical Institute''. Research 
conducted by the institute should take appropriate advantage of 
capabilities of other government agencies, universities, or the 
private sector.]
  [(k) Authorization of Appropriations for Operations.--] There 
is authorized to be appropriated to the [Secretary of 
Transportation] Federal Aviation Administration for operations 
of the Administration $4,088,000,000 for fiscal year 1991, 
$4,412,600,000 for fiscal year 1992, $4,716,500,000 for fiscal 
year 1993, $4,576,000,000 for fiscal year 1994, $4,674,000,000 
for fiscal year 1995, and $4,810,000,000 for fiscal year 1996.

   [Effective September 30, 1996, section 106 (as amended above), is 
                               repealed:]

[Sec. 106. Federal Aviation Administration

  [There is authorized to be appropriated to the Federal 
Aviation Administration for operations of the Administration 
$4,088,000,000 for fiscal year 1991, $4,412,600,000 for fiscal 
year 1992, $4,716,500,000 for fiscal year 1993, $4,576,000,000 
for fiscal year 1994, $4,674,000,000 for fiscal year 1995, and 
$4,810,000,000 for fiscal year 1996.]
          * * * * * * *

                  CHAPTER 3--GENERAL DUTIES AND POWERS

          * * * * * * *

        SUBCHAPTER I--DUTIES OF THE SECRETARY OF TRANSPORTATION

Sec. 301. Leadership, consultation, and cooperation

  The Secretary of Transportation shall--
          (1) * * *
          * * * * * * *
          (6) promote and undertake research and development 
        related to transportation, including noise abatement[, 
        with particular attention to aircraft noise, and 
        including] and basic highway vehicle science;
          * * * * * * *

Sec. 303. Policy on lands, wildlife and waterfowl refuges, and historic 
                    sites

  (a) * * *
  (b) The Secretary of Transportation and the Federal Aviation 
Administration shall cooperate and consult with the Secretaries 
of the Interior, Housing and Urban Development, and 
Agriculture, and with the States, in developing transportation 
plans and programs that include measures to maintain or enhance 
the natural beauty of lands crossed by transportation 
activities or facilities.
  (c) The Secretary and Administration may approve a 
transportation program or project (other than any project for a 
park road or parkway under section 204 of title 23) requiring 
the use of publicly owned land of a public park, recreation 
area, or wildlife and waterfowl refuge of national, State, or 
local significance, or land of a historic site of national, 
State, or local significance (as determined by the Federal, 
State, or local officials having jurisdiction over the park, 
area, refuge, or site) only if--
          (1) * * *
          * * * * * * *

Sec. 308. Reports

  (a) * * *
  (b) The [Secretary] Federal Aviation Board shall submit to 
the President and Congress each year a report on the aviation 
activities of the [Department] Federal Aviation Administration. 
The report shall include--
          (1) collected information the [Secretary] Board 
        considers valuable in deciding questions about--
                  (A) the development and regulation of civil 
                aeronautics;
                  (B) the use of airspace of the United States; 
                and
                  (C) the improvement of the air navigation and 
                traffic control system; and
          (2) recommendations for additional legislation and 
        other action the [Secretary] Board considers necessary.
          * * * * * * *

                     SUBCHAPTER II--ADMINISTRATIVE

          * * * * * * *

Sec. 324. Members of the armed forces

  [(a) The Secretary of Transportation--
          [(1) to ensure that national defense interests are 
        safeguarded properly and that the Secretary is advised 
        properly about the needs and special problems of the 
        armed forces, shall provide for participation of 
        members of the armed forces in carrying out the duties 
        and powers of the Secretary related to the regulation 
        and protection of air traffic, including providing for, 
        and research and development of, air navigation 
        facilities, and the allocation of airspace; and
          [(2) may provide for participation of members of the 
        armed forces in carrying out other duties and powers of 
        the Secretary.]
  (a) In General.--
          (1) FAA.--The Federal Aviation Administration, to 
        ensure that national defense interests are safeguarded 
        properly and that the Administration is advised 
        properly about the needs and special problems of the 
        armed forces, shall provide for participation of 
        members of the armed forces in carrying out the duties 
        and powers of the Administration related to the 
        regulation and protection of air traffic, including 
        providing for, and research and development of, air 
        navigation facilities, and the allocation of airspace.
          (2) Secretary of transportation.--The Secretary of 
        Transportation may provide for participation of members 
        of the armed forces in carrying out other duties and 
        powers of the Secretary.
          * * * * * * *
  (d) The Secretary of a military department does not control 
the duties and powers of a member of the armed forces 
appointed, detailed, or assigned under this section when those 
duties and powers pertain to the Department of Transportation 
or Federal Aviation Administration. A member of the armed 
forces appointed, detailed, or assigned under subsection (a)(2) 
of this section may not be charged against a statutory 
limitation on grades or strengths of the armed forces. The 
appointment, detail, or assignment and service of a member 
under this section to a position in the Department of 
Transportation or Federal Aviation Administration does not 
affect the status, office, rank, or grade held by that member, 
or a right or benefit arising from that status, office, rank, 
or grade.
          * * * * * * *

                     SUBCHAPTER III--MISCELLANEOUS

Sec. 351. Judicial review of actions in carrying out certain 
                    transferred duties and powers

  (a) Judicial Review.--[An] Subject to section 1335, an action 
of the Secretary of Transportation in carrying out a duty or 
power transferred under the Department of Transportation Act 
(Public Law 89-670, 80 Stat. 931), or an action of the 
Administrator of the Federal Railroad Administration[, the 
Federal Highway Administration, or the Federal Aviation 
Administration] or the Federal Highway Administration in 
carrying out a duty or power specifically assigned to the 
Administrator by that Act, may be reviewed judicially to the 
same extent and in the same way as if the action had been an 
action by the department, agency, or instrumentality of the 
United States Government carrying out the duty or power 
immediately before the transfer or assignment.
          * * * * * * *

Sec. 352. Authority to carry out certain transferred duties and powers

  In carrying out a duty or power transferred under the 
Department of Transportation Act (Public Law 89-670, 80 Stat. 
931), the Secretary of Transportation and the Administrators of 
the Federal Railroad Administration[, the Federal Highway 
Administration, and the Federal Aviation Administration] and 
the Federal Highway Administration have the same authority that 
was vested in the department, agency, or instrumentality of the 
United States Government carrying out the duty or power 
immediately before the transfer. An action of the Secretary or 
Administrator in carrying out the duty or power has the same 
effect as when carried out by the department, agency, or 
instrumentality.

Sec. 353. Toxicological testing of officers and employees

  (a) Collecting Specimens.--When the Secretary of 
Transportation or the head of a component of the Department of 
Transportation or the Federal Aviation Administration conducts 
post-accident or post-incident toxicological testing of an 
officer or employee of the Department or Administration, the 
Secretary or head or Chief Executive Officer of the 
Administration shall collect the specimen from the officer or 
employee as soon as practicable after the accident or incident. 
The Secretary or head or Chief Executive Officer of the 
Administration shall try to collect the specimen not later than 
4 hours after the accident or incident.
          * * * * * * *

                 SUBTITLE II--OTHER GOVERNMENT AGENCIES

          * * * * * * *

            CHAPTER 11--NATIONAL TRANSPORTATION SAFETY BOARD

Sec.
     * * * * * * *

                        SUBCHAPTER III--AUTHORITY

1131.  General authority.
     * * * * * * *
[1135.  Secretary of Transportation's responses to safety 
          recommendations.]
1135.  DOT's and FAA's responses to safety recommendations.
          * * * * * * *

             SUBCHAPTER II--ORGANIZATION AND ADMINISTRATIVE

          * * * * * * *

Sec. 1114. Disclosure, availability, and use of information

  (a) * * *
          * * * * * * *
  (d) Drug Tests.--(1) Notwithstanding section 503(e) of the 
Supplemental Appropriations Act, 1987 (Public Law 100-71, 101 
Stat. 471), the Secretary of Transportation and the Federal 
Aviation Administration shall provide the following information 
to the Board when requested in writing by the Board:
          (A) any report of a confirmed positive toxicological 
        test, verified as positive by a medical review officer, 
        conducted on an officer or employee of the Department 
        of Transportation or the Administration under post-
        accident, unsafe practice, or reasonable suspicion 
        toxicological testing requirements of the Department or 
        the Administration, when the officer or employee is 
        reasonably associated with the circumstances of an 
        accident or incident under the investigative 
        jurisdiction of the Board.
          * * * * * * *

                       SUBCHAPTER III--AUTHORITY

Sec. 1131. General authority

  (a) * * *
          * * * * * * *
  (c) Accidents Not Involving Government Misfeasance or 
Nonfeasance.--(1) When asked by the Board, the Secretary of 
Transportation or the Federal Aviation Administration, as the 
case may be, may--
          (A) * * *
          * * * * * * *

Sec. 1132. Civil aircraft accident investigations

  (a) * * *
          * * * * * * *
  (c) Participation of [Secretary] Federal Aviation 
Administration.--The Board shall provide for the participation 
of the [Secretary of Transportation] Federal Aviation 
Administration in the investigation of an aircraft accident 
under this chapter when participation is necessary to carry out 
the duties and powers of the [Secretary] Administration. 
However, the [Secretary] Administration may not participate in 
establishing probable cause.
  (d) Accidents Involving Only Military Aircraft.--If an 
accident involves only military aircraft and a duty of the 
[Secretary] Administration is or may be involved, the military 
authorities shall provide for the participation of the 
[Secretary] Administration. In any other accident involving 
only military aircraft, the military authorities shall give the 
Board or [Secretary] Administration information the military 
authorities decide would contribute to the promotion of air 
safety.

Sec. 1133. Review of other agency action

  The National Transportation Safety Board shall review on 
appeal--
          (1) the denial, amendment, modification, suspension, 
        or revocation of a certificate issued by the [Secretary 
        of Transportation] Federal Aviation Administration 
        under section 44703, 44709, or 44710 of this title;
          * * * * * * *

[Sec. 1135. Secretary of Transportation's responses to safety 
                    recommendations]

Sec. 1135. DOT's and FAA's responses to safety recommendations

  (a) General.--When the National Transportation Safety Board 
submits a recommendation about transportation safety to the 
Secretary of Transportation or the Federal Aviation 
Administration, the Secretary or the Administration shall give 
a formal written response to each recommendation not later than 
90 days after receiving the recommendation. The response shall 
indicate whether the Secretary or the Administration intends--
          (1) * * *
          * * * * * * *
  (d) Reports to Congress.--The Secretary [shall] and the 
Administration shall each submit to Congress on January 1 of 
each year a report containing each recommendation on 
transportation safety made by the Board to the Secretary or 
Administration during the prior year and a copy of the 
Secretary's or Administration's response to each 
recommendation.
          * * * * * * *

                SUBCHAPTER IV--ENFORCEMENT AND PENALTIES

          * * * * * * *

Sec. 1153. Judicial review

  (a) * * *
          * * * * * * *
  (c) [Administrator] Administration Seeking Judicial Review of 
Aviation Matters.--When [the Administrator of] the Federal 
Aviation Administration decides that an order of the Board 
under section 44709 or 46301(d)(5) of this title will have a 
significant adverse impact on carrying out this chapter related 
to an aviation matter, the [Administrator] Administration may 
obtain judicial review of the order under section 46110 of this 
title. The [Administrator] Administration shall be made a party 
to the judicial review proceedings. Findings of fact of the 
Board are conclusive if supported by substantial evidence.
          * * * * * * *

              CHAPTER 13--FEDERAL AVIATION ADMINISTRATION

                    SUBCHAPTER I--GENERAL PROVISIONS

1301. Definitions.

             SUBCHAPTER II--ORGANIZATION AND ADMINISTRATIVE

1311. Establishment.
1312. Federal Aviation Board.
1313. Officers.
1314. Personnel management program.
1315. Management Advisory Committee.
1316. Authority to carry out certain transferred functions, duties, and 
          powers.
1317. Civil Aeromedical Institute.

                        SUBCHAPTER III--AUTHORITY

1331. Functions.
1332. Regulations.
1333. Finality of decisions; appeals.
1334. Procurement program.
1335. Judicial review of actions in carrying out certain transferred 
          duties and powers.

                    SUBCHAPTER I--GENERAL PROVISIONS

Sec. 1301. Definitions

  In this chapter, the following definitions apply:
          (1) Administration.--The term ``Administration'' 
        means the Federal Aviation Administration established 
        by section 1311.
          (2) Aeronautics, air commerce, and air navigation 
        facility.--The terms ``aeronautics'', ``air commerce'', 
        and ``air navigation facility'' have the same meanings 
        given those terms in section 40102(a) of this title.
          (3) Airport and airway trust fund.--The term 
        ``Airport and Airway Trust Fund'' means the Airport and 
        Airway Trust Fund established by section 9502 of the 
        Internal Revenue Code of 1986.
          (4) Board.--The term ``Board'' means the Federal 
        Aviation Board established by section 1312.
          (5) Chief executive officer.--The term ``Chief 
        Executive Officer'' means the Chief Executive Officer 
        of the Federal Aviation Administration.

             SUBCHAPTER II--ORGANIZATION AND ADMINISTRATIVE

Sec. 1311. Establishment

  There is established in the executive branch as an 
independent establishment the Federal Aviation Administration. 
The Administration shall succeed the Federal Aviation 
Administration of the Department of Transportation in existence 
on the day before the effective date of this section.

Sec. 1312. Federal Aviation Board

  (a) In General.--There is established a Federal Aviation 
Board which shall serve as the head of the Administration.
  (b) Functions.--
          (1) In general.--The Board shall be responsible for 
        the major policy functions of the Administration, 
        including the following:
                  (A) The appointment and removal of the Chief 
                Executive Officer and the approval of other 
                senior officers of the Administration under 
                section 1313.
                  (B) The approval and submission to Congress 
                of major contracts under section 1334(d).
                  (C) The approval of major regulatory actions 
                under section 1332(b).
                  (D) The issuance of letters of intent under 
                section 47110(e).
                  (E) The approval and submission to Congress 
                of the Administration's plans for personnel 
                management and acquisition management programs 
                under sections 1314 and 1334.
                  (F) The approval of the agency's annual 
                budget submission.
                  (G) Long-range and strategic planning for the 
                Administration.
                  (H) The representation of the Administration 
                at public events to the extent practicable.
                  (I) Such other significant actions as the 
                Board considers appropriate.
          (2) Nondelegable functions.--The Board may not 
        delegate the functions described in subparagraphs (A) 
        through (F) of paragraph (1).
          (3) Not subject to entities created by executive 
        order.--The Administration shall not submit decisions 
        for the approval of, and shall not be bound by the 
        decisions or recommendations of, any committee, board, 
        or other organization established by Executive order.
  (c) Membership.--
          (1) Voting members.--The Board shall be composed of 3 
        voting members to be appointed by the President, by and 
        with the advice and consent of the Senate. The initial 
        members of the Board shall be appointed as soon as 
        practicable after the date of the enactment of the 
        Federal Aviation Administration Revitalization Act of 
        1995.
          (2) Non-voting members.--The Secretary of 
        Transportation (or the Secretary's designee) and the 
        Secretary of Defense (or the Secretary's designee) 
        shall serve as non-voting members of the Board.
  (d) Qualifications.--
          (1) In general.--Members appointed to the Board under 
        subsection (c)(1) shall represent the public interest 
        and shall be selected from individuals who are 
        knowledgeable in aviation. Members of the Board may 
        not--
                  (A) have a pecuniary interest in, or own 
                stock in or bonds of, an aeronautical 
                enterprise;
                  (B) engage in another business, vocation, or 
                employment; and
                  (C) be a member of any organization a 
                substantial part of whose activities are for 
                the purpose of influencing aviation-related 
                legislation.
          (2) Definition.--In this subsection, the term 
        ``influencing legislation'' has the meaning such term 
        has under section 4911(d) of the Internal Revenue Code 
        of 1986 (26 U.S.C. 4911(d)).
  (e) Terms.--
          (1) In general.--Subject to paragraphs (2) and (3), 
        each member of the Board appointed under subsection 
        (c)(1) shall be appointed for a term of 7 years.
          (2) Terms of initial appointees.--As designated by 
        the President at the time of appointment, of the 
        members first appointed under subsection (c)(1)--
                  (A) 1 shall be appointed for a term of 3 
                years;
                  (B) 1 shall be appointed for a term of 5 
                years; and
                  (C) 1 shall be appointed for a term of 7 
                years.
          (3) Vacancies.--Any member appointed under subsection 
        (c)(1) to fill a vacancy occurring before the 
        expiration of the term for which the member's 
        predecessor was appointed shall be appointed only for 
        the remainder of that term. A member may serve after 
        the expiration of that member's term until a successor 
        has taken office.
  (f) Removal.--Members of the Board appointed under subsection 
(c)(1) may be removed by the President for inefficiency, 
neglect of duty, or malfeasance in office.
  (g) Chairperson.--The Chairperson of the Board shall be 
appointed by the President, by and with the advice and consent 
of the Senate. At the time of such appointment, the President 
shall establish the term of the Chairperson. Such term may not 
exceed the term of the Chairperson's appointment to the Board.
  (h) Quorum.--Two members of the Board appointed under 
subsection (c)(1) shall constitute a quorum for carrying out 
the duties and powers of the Board.
  (i) Basic Pay.--
          (1) Chairperson.--The Chairperson of the Board shall 
        be paid at a rate equal to the rate of basic pay 
        payable for level II of the Executive Schedule.
          (2) Other members.--The other voting members of the 
        Board shall be paid at a rate equal to the rate of 
        basic pay payable for level III of the Executive 
        Schedule.

Sec. 1313. Officers

  (a) Chief Executive Officers.--
          (1) Appointment.--The Board shall appoint a Chief 
        Executive Officer.
          (2) Duties.--The Board shall delegate to the Chief 
        Executive Officer the responsibility for managing the 
        day-to-day operation of the Administration, including 
        (except as provided in section 1312(b)) the hiring and 
        firing of employees, acquisition of facilities and 
        equipment, issuance of rules, airworthiness directives, 
        and advisory circulars, preparation of the annual 
        budget submission, the awarding of grants, and such 
        other functions as the Board considers appropriate.
          (3) Removal.--The Chief Executive Officer shall serve 
        at the pleasure of the Board; except that the Board 
        shall make every effort to ensure stability and 
        continuity in the leadership of the Administration.
          (4) Basic pay.--Subject to section 1314(f), the Chief 
        Executive Officer shall be paid at a rate to be 
        determined by the Board.
  (b) Other Officers.--Subject to the approval of the Board, 
the Chief Executive Officer shall appoint other senior officers 
who shall each have such duties as the Chief Executive Officer 
may prescribe.
  (c) Chief Counsel.--Subject to the approval of the Board, the 
Chief Executive Officer shall appoint a Chief Counsel who shall 
be the chief legal officer for all legal matters arising from 
the activities of the Administration.
  (d) Inspector General.--There shall be in the Administration 
an Inspector General who shall be appointed in accordance with 
the Inspector General Act of 1978 (5 U.S.C. App.).
  (e) Aircraft Noise Ombudsman.--
          (1) Establishment.--There shall be in the 
        Administration an Aircraft Noise Ombudsman who shall be 
        appointed by the Board.
          (2) Duties and responsibilities.--The Ombudsman 
        shall--
                  (A) serve as a liaison with the public on 
                issues regarding aircraft noise; and
                  (B) be consulted when the Administration 
                proposes changes in aircraft routes so as to 
                minimize any increases in aircraft noise over 
                populated areas.

Sec. 1314. Personnel management program

  (a) Exemption From Certain Provisions of Title 5, United 
States Code.--
          (1) In general.--Except as otherwise provided in this 
        Act, the Administration shall be exempt from parts II 
        and III of title 5.
          (2) Effective date.--The exemption provided by 
        paragraph (1) shall not take effect until the 
        expiration of the 180-period described in subsection 
        (d)(2).
  (b) Development of Personnel Management System.--
          (1) In general.--Not later than 180 days after the 
        date of the enactment of the Federal Aviation 
        Administration Revitalization Act of 1995, the Board 
        shall develop a personnel management system for the 
        Administration.
          (2) Consultation and negotiation.--In developing the 
        personnel management system, the Board shall negotiate 
        with the exclusive bargaining representatives of 
        employees of the Administration certified under section 
        7111 of title 5 and other employees of the 
        Administration and shall consult with nongovernmental 
        experts in personnel management systems. The 
        negotiation with the exclusive bargaining 
        representatives shall be completed on or before the 
        90th day after the date of enactment referred to in 
        paragraph (1).
          (3) Mediation.--If the Board does not reach an 
        agreement under paragraph (2) with the exclusive 
        bargaining representatives on any provision of the 
        personnel management system, 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 Board shall 
        include in the plan to be submitted to Congress under 
        subsection (d) the objections of the exclusive 
        bargaining representatives and the reasons for the 
        objections.
          (4) Continuation of agreements.--Collective 
        bargaining agreements and labor management relations 
        under chapter 71 of title 5 shall remain in effect for 
        the Administration until amended or modified under the 
        personnel management system.
          (5) Goals.--The goal of the personnel management 
        system to be developed by the Board under paragraph (1) 
        shall be to provide, consistent with the requirements 
        of this section, the Administration with the ability--
                  (A) to hire and fire employees as in the 
                private sector;
                  (B) to promote and pay employees based on 
                merit;
                  (C) to provide market-based salaries 
                (designed to attract the best qualified 
                employees) within available resources;
                  (D) to provide pay increases and other 
                incentives to staff facilities that are 
                difficult to staff;
                  (E) to move personnel to those facilities 
                where they are most needed; and
                  (F) to provide an opportunity for collective 
                bargaining and other consultation with 
                employees concerning terms and conditions of 
                employment.
          (6) Safeguards.--The personnel management system 
        shall include safeguards to ensure that travel expenses 
        of employees of the Administration (including meal and 
        lodging expenses) are not excessive.
  (c) Experts Evaluation.--The arrangements entered into by the 
Board with the experts consulted by the Board under subsection 
(b) shall provide for those experts to evaluate the personnel 
management system developed by the Board and submit to Congress 
the results of such evaluation before the last day of the 180-
day period referred to in subsection (b)(1).
  (d) Notice to Congress.--
          (1) In general.--Upon development of the personnel 
        management system under subsection (b), the Board shall 
        submit to Congress a comprehensive plan describing the 
        personnel management system, along with all existing or 
        proposed rules or regulations relevant to the system.
          (2) Implementation.--The Board may begin to implement 
        the personnel management system only after the 
        expiration of the 180-day period that begins on the 
        date of submission of the plan to Congress under 
        paragraph (1).
  (e) Employee Rights and Benefits.--Nothing in this section 
shall be construed as exempting the Administration and 
employees of the Administration from any of the following 
provisions of title 5:
          (1) Section 2302(b)(8) (relating to whistleblower 
        protection) and related enforcement provisions.
          (2) Sections 7311(3) and 7311(4) (relating to 
        limitations on the right to strike).
          (3) Sections 2302(b)(1) and 7204 (relating to 
        antidiscrimination) and related enforcement provisions 
        and provisions of law referred to in section 
        2302(b)(1).
          (4) Chapter 71 (relating to labor-management 
        relations).
          (5) Chapter 73 (relating to suitability, security, 
        and conduct).
          (6) Chapter 81 (relating to compensation for work 
        injuries).
          (7) Chapter 83 (relating to retirement).
          (8) Chapter 84 (relating to the Federal Employees' 
        Retirement System).
          (9) Chapter 85 (relating to unemployment 
        compensation).
          (10) Chapter 87 (relating to life insurance).
          (11) Chapter 89 (relating to health insurance).
  (f) Pay Restrictions.--
          (1) Maximum rate of pay.--No officer (including the 
        Chief Executive Officer) or employee of the 
        Administration may receive annual pay in excess of the 
        annual rate of basic pay payable for level II of the 
        Executive Schedule unless the Board provides written 
        notification to Congress of such higher rate of pay and 
        30 days (excluding Saturdays, Sundays, and holidays, 
        and any day on which neither House of Congress is in 
        session because of an adjournment sine die, a recess of 
        more than 3 days, or an adjournment of more than 3 
        days) have elapsed since the date of such notification.
          (2) Percentage of employees above level es-1 of 
        senior executive service.--Not more than 0.35 percent 
        of the officers (including members of the Board and the 
        Chief Executive Officer) and employees of the 
        Administration may be paid at a rate which equals or 
        exceeds the rate payable for level ES-1 of the Senior 
        Executive Service.
          (3) Raises and bonuses.--No officer (including the 
        Chief Executive Officer) or employee of the 
        Administration who is paid at a rate which exceeds the 
        rate payable for level ES-1 of the Senior Executive 
        Service may receive in a calendar year raises or 
        bonuses (excluding cost-of-living increases and 
        increases that are the results of a promotion) that 
        total more than 15 percent of the annual rate of pay of 
        the officer or employee on the day before the first day 
        of such calendar year.
  (g) Contracts Between FAA and Former FAA Employees.--Before 
the Administration may enter into a contract with an individual 
who has been employed by the Administration at any time during 
the 2-year period preceding the expected date of entry into the 
contract or with a corporation, partnership, or other entity in 
which such a former employee is a partner, principal officer, 
or majority stockholder or which is otherwise controlled or 
predominantly staffed by 1 or more of such former employees, 
the Board must first approve of the entry into the contract as 
being essential to the mission of the Administration.

Sec. 1315. Management Advisory Committee

  (a) Establishment.--There is established an advisory 
committee which shall be known as the Federal Aviation 
Management Advisory Committee (hereinafter in this section 
referred to as the ``Management Advisory Committee'').
  (b) Membership.--The Management Advisory Committee shall 
consist of 17 members, who shall be appointed as follows:
          (1) 1 member appointed by the Speaker of the House of 
        Representatives;
          (2) 1 member appointed by the minority leader of the 
        House of Representatives;
          (3) 1 member appointed by the majority leader of the 
        Senate;
          (4) 1 member appointed by the minority leader of the 
        Senate;
          (5) 13 members appointed by the Board 12 of whom 
        shall represent 1 of the following interests:
                  (A) Airline passengers.
                  (B) General aviation and sport aviation.
                  (C) Business aviation.
                  (D) Hub airports.
                  (E) Non-hub and general aviation airports.
                  (F) Major airlines and national airlines.
                  (G) Regional airlines and air taxis.
                  (H) Cargo airlines and charter airlines.
                  (I) Aircraft manufacturers.
                  (J) Airline employees.
                  (K) Federal Aviation Administration 
                employees.
                  (L) State aviation officials.
  (c) Functions.--The Management Advisory Committee shall 
provide advice and counsel to the Administration on issues 
which affect or are affected by the operations of the 
Administration. The Management Advisory Committee shall hold 
quarterly meetings. The Administration shall give the 
Management Advisory Committee access to internal documents 
(other than proprietary information and documents relating to 
on-going litigation) and personnel of the Administration. The 
Management Advisory Committee shall function as an oversight 
resource for management, policy, spending, and regulatory 
matters under the jurisdiction of the Administration.
  (d) Chairman.--The Management Advisory Committee shall elect 
a chairman of the Management Advisory Committee from among its 
members.
  (e) Terms of Members.--
          (1) Members appointed by congress.--Members appointed 
        under subsections (b)(1) through (b)(4) shall be 
        appointed for a term of 2 years.
          (2) Members appointed by the board.--Members 
        appointed under subsection (b)(5) shall be appointed 
        for a term of 3 years.
  (f) Travel and Per Diem.--Each member of the Management 
Advisory Committee 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.
  (g) Utilization of Personnel From FAA.--The Administration 
shall make available to the Management Advisory Committee such 
staff, information, and administrative services and assistance 
as may reasonably be required to enable the Management Advisory 
Committee to carry out its responsibilities under this section.
  (h) Applicability of Federal Advisory Committee Act.--The 
Management Advisory Committee shall be subject to the Federal 
Advisory Committee Act (5 U.S.C. App.); except that section 
14(a)(2)(B) of such Act (relating to the termination of 
advisory committees) shall not apply to the Committee.

Sec. 1316. Authority to carry out certain transferred functions, 
                    duties, and powers

  Except as otherwise provided in this chapter, in carrying out 
a function, duty, or power transferred under the Federal 
Aviation Administration Revitalization Act of 1995 (including 
the amendments made by such Act), the Administration has the 
same authority that was vested in the department, agency, or 
instrumentality of the United States Government carrying out 
the function, duty, or power immediately before the transfer. 
An action of the Administration in carrying out the function, 
duty, or power has the same effect as when carried out by the 
department, agency, or instrumentality.

Sec. 1317. Civil Aeromedical Institute

  There is established within the Federal Aviation 
Administration an institute to conduct civil aeromedical 
research under section 44507 of this title. Such institute 
shall be known as the ``Civil Aeromedical Institute''. Research 
conducted by the institute should take appropriate advantage of 
capabilities of other government agencies, universities, or the 
private sector.

                       SUBCHAPTER III--AUTHORITY

Sec. 1331. Functions

  (a) In General.--The functions of the Federal Aviation 
Administration shall be all functions vested in the Board, the 
Chief Executive Officer, or the Federal Aviation Administration 
by this title or by law enacted after the date of the enactment 
of this chapter. Such functions include functions of the 
Administration, the Board, and the Chief Executive Officer 
under the following provisions of this title:
          (1) Section 308(b).
          (2) Section 353.
          (3) Section 1114(d).
          (4) Section 1131(c).
          (5) Subsections (c) and (d) of section 1132.
          (6) Section 1135.
          (7) Section 1153(c).
          (8) Subsections (a), (c), and (d) of section 40101.
          (9) Section 40102(a)(8).
          (10) Section 40103(b).
          (11) Section 40104.
          (12) Section 40105.
          (13) Section 40106(a).
          (14) Section 40107.
          (15) Section 40108.
          (16) Section 40109(b).
          (17) Subsections (a) and (b) of section 40110.
          (18) Section 40111.
          (19) Section 40112.
          (20) Section 40113.
          (21) Section 40114.
          (22) Section 40115.
          (23) Section 40117.
          (24) Section 40119.
          (25) Section 41714.
          (26) Chapter 441.
          (27) Chapter 443.
          (28) Chapter 445.
          (29) Chapter 447.
          (30) Chapter 449.
          (31) Chapter 451.
          (32) Chapter 453.
          (33) Chapter 461.
          (34) Section 46301.
          (35) Section 46302.
          (36) Section 46303.
          (37) Section 46304.
          (38) Section 46306.
          (39) Section 46308.
          (40) Section 46311.
          (41) Section 46313.
          (42) Section 46315.
          (43) Section 46316.
          (44) Chapter 465.
          (45) Chapter 471.
          (46) Chapter 473.
          (47) Chapter 475.
          (48) Chapter 481.
          (49) Chapter 491.
  (b) Incidental Functions.--In addition, the functions of the 
Administration shall include all functions of the Department of 
Transportation on the effective date of this section which the 
Administration determines are incidental to, helpful to, or 
necessary for the performance of the functions referred to in 
subsection (a) or which relate primarily to those functions.

Sec. 1332. Regulations

  (a) General Authority.--The Administration may issue, 
rescind, and amend such regulations as are necessary to carry 
out its functions.
  (b) Approval of Board.--
          (1) General rule.--The Administration may only issue 
        a proposed regulation, final regulation, airworthiness 
        directive, or advisory circular that may result in the 
        expenditure by State, local, and tribal governments in 
        the aggregate, or by the private sector, of $10,000,000 
        or more (adjusted annually for inflation) in any 1 year 
        if the Board first approves of the issuance of such 
        regulation, directive, or circular.
          (2) Emergency action.--In an emergency, the Chief 
        Executive Officer may issue a regulation, directive, or 
        circular described in paragraph (1) without prior Board 
        approval but subject to Board ratification following 
        issuance.
  (c) Review by DOT.--
          (1) Submission.--Before the Administration issues any 
        proposed or final regulation--
                  (A) the Administration shall submit a copy of 
                the regulation to the Secretary of 
                Transportation;
                  (B) the Administration shall provide the 
                Secretary with a period of 5 days (excluding 
                Saturdays, Sundays, and holidays) beginning on 
                the date of such submission to determine 
                whether or not the regulation is likely to have 
                a significant effect on other modes of 
                transportation in the national transportation 
                system or the Secretary's aviation 
                responsibilities, including national defense 
                responsibilities; and
                  (C) if the Secretary determines, before the 
                last day of such 5-day period, that the 
                regulation is likely to have such a significant 
                effect, the Administration shall provide the 
                Secretary with an additional period of 45 days 
                to assess the effect of the regulation on other 
                modes of transportation in the national 
                transportation system and the Secretary's 
                aviation responsibilities, including national 
                defense responsibilities.
          (2) Recommendations.--The Secretary may recommend to 
        the Administration modifications of a proposed or final 
        regulation necessary to minimize the adverse effect of 
        such regulation on other modes of transportation in the 
        national transportation system or the Secretary's 
        aviation responsibilities, including national defense 
        responsibilities. The Administration may make any 
        modifications recommended by the Secretary. If the 
        Administration does not make a modification recommended 
        by the Secretary, the Administration shall include in 
        the publication of the proposed or final regulation a 
        description of the recommended modification and the 
        reasons for not making the modification.
          (3) Exceptions.--This subsection shall not apply to 
        the following types of regulations:
                  (A) Regulations pertaining to agency 
                organization, procedure, or practice.
                  (B) Regulations pertaining solely to 
                navigational aids.
                  (C) Regulations pertaining solely to airspace 
                designations and configurations.
                  (D) Regulations pertaining solely to standard 
                instrument approach procedures.
                  (E) Regulations pertaining solely to aircraft 
                design.
                  (F) Regulations pertaining to the personnel 
                management system developed under section 1314.
                  (G) Regulations pertaining to the acquisition 
                management system developed under section 1334.
          (4) Emergency action.--In an emergency, a regulation 
        may take effect for the duration of the emergency and 
        before the Secretary completes review of the regulation 
        under this subsection, as determined necessary by the 
        Chief Executive Officer or the Board.
  (d) Automatic Termination Date.--Any regulation issued by the 
Administration after the effective date of this section which 
is likely to result in the annual expenditure by State, local, 
and tribal governments in the aggregate, or by the private 
sector, of $25,000,000 or more (adjusted annually for 
inflation) in any 1 year must contain an automatic termination 
date. The termination date shall also apply to any advisory 
circular issued by the Administration and pertaining solely to 
such regulation.
  (e) Emergency Defined.--In this section, the term 
``emergency'' means a situation where there is good cause for 
finding that consideration by the Board or by the Department of 
Transportation is impracticable or contrary to the public 
interest.

Sec. 1333. Finality of decisions; appeals

  Decisions of the Administration made pursuant to the exercise 
of the functions enumerated in subtitle VII of this title shall 
be administratively final, and appeals as currently authorized 
by law shall be taken directly to the National Transportation 
Safety Board or to any court of competent jurisdiction, as 
appropriate.

Sec. 1334. Procurement program

  (a) Exemption From Procurement Laws.--
          (1) In general.--The following laws and regulations 
        shall not apply to the Federal Aviation Administration:
                  (A) Title III of the Federal Property and 
                Administrative Services Act of 1949 (41 U.S.C. 
                251-266).
                  (B) The Office of Federal Procurement Policy 
                Act (41 U.S.C. 401 et seq.).
                  (C) The Federal Acquisition Streamlining Act 
                of 1994 (Public Law 103-355).
                  (D) The Small Business Act (15 U.S.C. 631 et 
                seq.); except that the Administration shall 
                provide reasonable opportunities to small 
                business concerns and small business concerns 
                owned and controlled by socially and 
                economically disadvantaged individuals to be 
                awarded contracts.
                  (E) Subchapter V of chapter 35 of title 31 
                (relating to the procurement protest system).
                  (F) The Brooks Automatic Data Processing Act 
                (40 U.S.C. 759).
                  (G) Section 3709 of the Revised Statutes of 
                the United States (41 U.S.C. 5).
                  (H) The Federal Acquisition Regulation and 
                any laws not listed in subparagraphs (A) 
                through (G) providing authority to promulgate 
                regulations in the Federal Acquisition 
                Regulation.
          (2) Effective date.--The exemption provided by 
        paragraph (1) shall not take effect until the 
        expiration of the 180-day period referred to in 
        subsection (c)(2).
  (b) Development of Acquisition Management System.--
          (1) In general.--Not later than 180 days after the 
        date of the enactment of the Federal Aviation 
        Administration Revitalization Act of 1995, the Federal 
        Aviation Board, in consultation with such 
        nongovernmental experts in acquisition management 
        systems as the Board may employ, shall develop an 
        acquisition management system for the Administration.
          (2) Consultation.--In developing the acquisition 
        management system, the Board shall consult 
        nongovernmental experts in acquisition management 
        systems.
          (3) Goals.--The acquisition management system to be 
        developed by the Board under paragraph (1) shall be 
        designed--
                  (A) to ensure that services are procured and 
                new equipment is installed and certified as 
                quickly as possible without sacrificing 
                principles of fairness and protection against 
                waste, fraud, and abuse; and
                  (B) to ensure a common interoperable air 
                traffic control system with the military.
          (4) Experts evaluation.--The arrangements entered 
        into by the Board with the experts consulted by the 
        Board under paragraph (2) shall provide for those 
        experts to evaluate the acquisition management system 
        developed by the Board and submit to Congress the 
        results of such evaluation before the last day of the 
        180-day period referred to in paragraph (1).
  (c) Notice to Congress.--
          (1) In general.--Upon the development of the 
        acquisition management system, the Board shall submit a 
        comprehensive plan describing the acquisition 
        management system to Congress, along with all existing 
        or proposed rules or regulations relevant to the 
        system.
          (2) Implementation.--The Administration may begin to 
        implement the acquisition management system only after 
        the expiration of the 180-day period that begins on the 
        date on which the plan is submitted to Congress under 
        paragraph (1). The acquisition management system shall 
        apply to contracts entered into after the expiration of 
        such 180-day period.
  (d) Contracts.--
          (1) Approval of certain contracts.--The 
        Administration may only enter into a contract that has 
        a total contract value, including all options, of an 
        amount greater than $100,000,000 if the Board first 
        approves of the entry into the contract.
          (2) Notice to congress of certain contracts.--In 
        addition to complying with paragraph (1), the 
        Administration may only enter into a contract that has 
        a total contract value, including all options, of an 
        amount greater than $250,000,000 if the Board provides 
        written notice to Congress of the proposed entry into 
        the contract, together with a description of the 
        contract and at least 30 calendar days elapse after the 
        date of such notification.

Sec. 1335. Judicial review of actions in carrying out certain 
                    transferred duties and powers

  (a) Judicial Review.--An action of the Administration in 
carrying out a duty or power transferred under the Department 
of Transportation Act (Public Law 89-670) and under the Federal 
Aviation Administration Revitalization Act of 1995 and an 
action of the Administrator of the Federal Aviation 
Administration in carrying out a duty or power specifically 
assigned to the Administrator by the Department of 
Transportation Act and transferred to the Administration by the 
Federal Aviation Administration Revitalization Act of 1995 may 
be reviewed judicially to the same extent and in the same way 
as if the action had been an action by the department, agency, 
or instrumentality of the United States Government carrying out 
the duty or power immediately before the transfer.
  (b) Application of Procedural Requirements.--A statutory 
requirement related to notice, an opportunity for a hearing, 
action on the record, or administrative review that applied to 
a duty or power transferred by the Acts referred to in 
subsection (a) applies to the Administration when carrying out 
the duty or power.

             SUBTITLE III--GENERAL AND INTERMODAL PROGRAMS

          * * * * * * *

                 CHAPTER 55--INTERMODAL TRANSPORTATION

          * * * * * * *

Sec. 5502. Intermodal Transportation Advisory Board

  (a) Organization.--The Intermodal Transportation Advisory 
Board is a board in the Office of the Secretary of 
Transportation.
  [(b) Membership.--The Board consists of the Secretary, who 
serves as chairman, and the Administrator, or the 
Administrator's designee, of--
          [(1) the Federal Highway Administration;
          [(2) the Federal Aviation Administration;
          [(3) the Maritime Administration;
          [(4) the Federal Railroad Administration; and
          [(5) the Federal Transit Administration.]
  (b) Membership.--The Board consists of--
          (1) the Secretary, who serves as chairman;
          (2) the Chief Executive Officer of the Federal 
        Aviation Administration or the Chief Executive 
        Officer's designee; and
          (3) the Administrator, or the Administrator's 
        designee, of--
                  (A) the Federal Highway Administration;
                  (B) the Maritime Administration;
                  (C) the Federal Railroad Administration; and
                  (D) the Federal Transit Administration.
          * * * * * * *

             SUBTITLE VI--MOTOR VEHICLE AND DRIVER PROGRAMS

          * * * * * * *

                 CHAPTER 303--NATIONAL DRIVER REGISTER

          * * * * * * *

Sec. 30305. Access to Register information

  (a) * * *
  (b) Requests To Obtain Information.--(1) * * *
          * * * * * * *
  (3) An individual who has received, or is applying for, an 
airman's certificate may request the chief driver licensing 
official of a State to provide information about the individual 
under subsection (a) of this section to [the Administrator of] 
the Federal Aviation Administration. The [Administrator] 
Administration may receive the information and shall make the 
information available to the individual for review and written 
comment. The [Administrator] Administration may use the 
information to verify information required to be reported to 
the [Administrator] Administration by an airman applying for an 
airman medical certificate and to evaluate whether the airman 
meets the minimum standards prescribed by the [Administrator] 
Administration to be issued an airman medical certificate. The 
[Administrator] Administration may not otherwise divulge or use 
the information. Information may not be obtained from the 
Register under this paragraph if the information was entered in 
the Register more than 3 years before the request, unless the 
information is about a revocation or suspension still in effect 
on the date of the request.
          * * * * * * *

                    SUBTITLE VII--AVIATION PROGRAMS

          * * * * * * *

                    PART A--AIR COMMERCE AND SAFETY

          * * * * * * *

                           SUBPART I--GENERAL

          * * * * * * *

                    CHAPTER 401--GENERAL PROVISIONS

          * * * * * * *

Sec. 40101. Policy

  (a) Economic Regulation.--In carrying out subpart II of this 
part and those provisions of subpart IV applicable in carrying 
out subpart II, the Secretary of Transportation and the Federal 
Aviation Administration shall consider the following matters, 
among others, as being in the public interest and consistent 
with public convenience and necessity:
          (1) * * *
          * * * * * * *
  (c) General Safety Considerations.--In carrying out subpart 
III of this part and those provisions of subpart IV applicable 
in carrying out subpart III, the [Administrator of the] Federal 
Aviation Administration shall consider the following matters:
          (1) the requirements of national defense and 
        commercial and general aviation.
          (2) the public right of freedom of transit through 
        the navigable airspace.
  (d) Safety Considerations in Public Interest.--In carrying 
out subpart III of this part and those provisions of subpart IV 
applicable in carrying out subpart III, the [Administrator] 
Administration shall consider the following matters, among 
others, as being in the public interest:
          (1) * * *
          * * * * * * *

Sec. 40102. Definitions

  (a) General Definitions.--In this part--
          (1) * * *
          * * * * * * *
          (8) ``airman'' means an individual--
                  (A) in command, or as pilot, mechanic, or 
                member of the crew, who navigates aircraft when 
                under way;
                  (B) except to the extent [the Administrator 
                of] the Federal Aviation Administration may 
                provide otherwise for individuals employed 
                outside the United States, who is directly in 
                charge of inspecting, maintaining, overhauling, 
                or repairing aircraft, aircraft engines, 
                propellers, or appliances; or
          * * * * * * *
          (20) ``Federal airway'' means a part of the navigable 
        airspace that the [Administrator] Federal Aviation 
        Administration designates as a Federal airway.
          * * * * * * *
          (37) ``public aircraft''--
                  (A) * * *
                  (B) does not include a government-owned 
                aircraft--
                          (i) transporting property for 
                        commercial purposes; or
                          (ii) transporting passengers other 
                        than--
                                  (I) transporting (for other 
                                than commercial purposes) 
                                crewmembers or other persons 
                                aboard the aircraft whose 
                                presence is required to 
                                perform, or is associated with 
                                the performance of, a 
                                governmental function such as 
                                firefighting, search and 
                                rescue, law enforcement, 
                                aeronautical research, or 
                                biological or geological 
                                resource management; or
                                  (II) transporting (for other 
                                than commercial purposes) 
                                persons aboard the aircraft if 
                                the aircraft is operated by the 
                                Armed Forces or an intelligence 
                                agency of the United States.
        An aircraft described in the preceding sentence shall, 
        notwithstanding any limitation relating to use of the 
        aircraft for commercial purposes, be considered to be a 
        public aircraft for the purposes of this part without 
        regard to whether the aircraft is operated by a unit of 
        government on behalf of another unit of government, 
        pursuant to a cost reimbursement agreement between such 
        units of government, if the unit of government on whose 
        behalf the operation is conducted certifies to [the 
        Administrator of] the Federal Aviation Administration 
        that the operation was necessary to respond to a 
        significant and imminent threat to life or property 
        (including natural resources) and that no service by a 
        private operator was reasonably available to meet the 
        threat.
          * * * * * * *

Sec. 40103. Sovereignty and use of airspace

  (a) Sovereignty and Public Right of Transit.--(1) The United 
States Government has exclusive sovereignty of airspace of the 
United States.
  (2) A citizen of the United States has a public right of 
transit through the navigable airspace. To further that right, 
the Secretary of Transportation and the Federal Aviation 
Administration shall consult with the Architectural and 
Transportation Barriers Compliance Board established under 
section 502 of the Rehabilitation Act of 1973 (29 U.S.C. 792) 
before prescribing a regulation or issuing an order or 
procedure that will have a significant impact on the 
accessibility of commercial airports or commercial air 
transportation for handicapped individuals.
  (b) Use of Airspace.--(1) The [Administrator of the] Federal 
Aviation Administration shall develop plans and policy for the 
use of the navigable airspace and assign by regulation or order 
the use of the airspace necessary to ensure the safety of 
aircraft and the efficient use of airspace. The [Administrator] 
Administration may modify or revoke an assignment when required 
in the public interest.
  (2) The [Administrator] Administration shall prescribe air 
traffic regulations on the flight of aircraft (including 
regulations on safe altitudes) for--
          (A) navigating, protecting, and identifying aircraft;
          (B) protecting individuals and property on the 
        ground;
          (C) using the navigable airspace efficiently; and
          (D) preventing collision between aircraft, between 
        aircraft and land or water vehicles, and between 
        aircraft and airborne objects.
  (3) To establish security provisions that will encourage and 
allow maximum use of the navigable airspace by civil aircraft 
consistent with national security, the [Administrator] 
Administration, in consultation with the Secretary of Defense, 
shall--
          (A) establish areas in the airspace the 
        [Administrator] Administration decides are necessary in 
        the interest of national defense; and
          (B) by regulation or order, restrict or prohibit 
        flight of civil aircraft that the [Administrator] 
        Administration cannot identify, locate, and control 
        with available facilities in those areas.
  (4) Notwithstanding the military exception in section 
553(a)(1) of title 5, subchapter II of chapter 5 of title 5 
applies to a regulation prescribed under this subsection.
          * * * * * * *

Sec. 40104. Promotion of civil aeronautics and air commerce

  (a) Developing Civil Aeronautics and Air Commerce.--The 
[Administrator of the] Federal Aviation Administration shall 
encourage the development of civil aeronautics and air commerce 
in and outside the United States. In carrying out this 
subsection, the [Administrator] Administration shall take 
action that the [Administrator] Administration considers 
necessary to establish, within available resources, a program 
to distribute civil aviation information in each region served 
by the Administration. The program shall provide, on request, 
informational material and expertise on civil aviation to State 
and local school administrators, college and university 
officials, and officers of other interested organizations.
  (b) Developing and Constructing Civil Supersonic Aircraft.--
The [Secretary of Transportation] Administration may develop 
and construct a civil supersonic aircraft.

Sec. 40105. International negotiations, agreements, and obligations

  (a) Advice and Consultation.--The Secretary of State shall 
advise the [Administrator of the] Federal Aviation 
Administration and the Secretaries of Transportation and 
Commerce, and consult with them as appropriate, about 
negotiations for an agreement with a government of a foreign 
country to establish or develop air navigation, including air 
routes and services. The Secretary of Transportation shall 
consult with the Secretary of State in carrying out this part 
to the extent this part is related to foreign air 
transportation.
  (b) Actions of Secretary and [Administrator] 
Administration.--(1) In carrying out this part, the Secretary 
of Transportation and the [Administrator] Administration--
          (A) shall act consistently with obligations of the 
        United States Government under an international 
        agreement;
          (B) shall consider applicable laws and requirements 
        of a foreign country; and
          (C) may not limit compliance by an air carrier with 
        obligations or liabilities imposed by the government of 
        a foreign country when the Secretary takes any action 
        related to a certificate of public convenience and 
        necessity issued under chapter 411 of this title.
          * * * * * * *
  (c) Consultation on International Air Transportation 
Policy.--In carrying out section 40101(e) of this title, the 
Secretaries of State and Transportation, to the maximum extent 
practicable, shall consult on broad policy goals and individual 
negotiations with--
          (1) the Secretaries of Commerce and Defense and the 
        Federal Aviation Administration;
          * * * * * * *

Sec. 40106. Emergency powers

  (a) Deviations From Regulations.--Appropriate military 
authority may authorize aircraft of the armed forces of the 
United States to deviate from air traffic regulations 
prescribed under section 40103(b) (1) and (2) of this title 
when the authority decides the deviation is essential to the 
national defense because of a military emergency or urgent 
military necessity. The authority shall--
          (1) give the [Administrator of the] Federal Aviation 
        Administration prior notice of the deviation at the 
        earliest practicable time; and
          (2) to the extent time and circumstances allow, make 
        every reasonable effort to consult with the 
        [Administrator] Administration and arrange for the 
        deviation in advance on a mutually agreeable basis.
  (b) Suspension of Authority.--(1) * * *
  (2) The President may act under this subsection without 
notice or a hearing. The suspension remains in effect for as 
long as the President decides is necessary to ensure the 
security of aircraft against unlawful seizure. Notwithstanding 
section 40105(b) of this title, the authority of the President 
to suspend rights under this subsection is a condition to a 
certificate of public convenience and necessity, air carrier 
operating certificate, foreign air carrier or foreign aircraft 
permit, or foreign air carrier operating specification issued 
by the Secretary of Transportation or the Federal Aviation 
Administration under this part.
          * * * * * * *

Sec. 40107. Presidential transfers

  (a) General Authority.--The President may transfer to the 
[Administrator of the] Federal Aviation Administration a duty, 
power, activity, or facility of a department, agency, or 
instrumentality of the executive branch of the United States 
Government, or an officer or unit of a department, agency, or 
instrumentality of the executive branch, related primarily to 
selecting, developing, testing, evaluating, establishing, 
operating, or maintaining a system, procedure, facility, or 
device for safe and efficient air navigation and air traffic 
control. In making a transfer, the President may transfer 
records and property and make officers and employees from the 
department, agency, instrumentality, or unit available to the 
[Administrator] Administration.
  (b) During War.--If war occurs, the President by executive 
order may transfer to the Secretary of Defense a duty, power, 
activity, or facility of the [Administrator] Administration. In 
making the transfer, the President may transfer records, 
property, officers, and employees of the Administration to the 
Department of Defense.

Sec. 40108. Training schools

  (a) Authority To Operate.--The [Administrator of the] Federal 
Aviation Administration may operate schools to train officers 
and employees of the Administration to carry out duties, 
powers, and activities of the [Administrator] Administration.
  (b) Attendance.--The [Administrator] Administration may 
authorize officers and employees of other departments, 
agencies, or instrumentalities of the United States Government, 
officers and employees of governments of foreign countries, and 
individuals from the aeronautics industry to attend those 
schools. However, if the attendance of any of those officers, 
employees, or individuals increases the cost of operating the 
schools, the [Administrator] Administration may require the 
payment or transfer of amounts or other consideration to offset 
the additional cost. The amount received may be credited to the 
appropriation current when the expenditures are or were paid, 
the appropriation current when the amount is received, or both.

Sec. 40109. Authority to exempt

  (a) * * *
  (b) Safety Regulation.--The [Administrator of the] Federal 
Aviation Administration may grant an exemption from a 
regulation prescribed in carrying out sections 40103(b) (1) and 
(2), 40119, 44901, 44903, 44906, and 44935-44937 of this title 
when the [Administrator] Administration decides the exemption 
is in the public interest.
          * * * * * * *

Sec. 40110. General procurement authority

  (a) General.--In carrying out this part, the [Administrator 
of the] Federal Aviation Administration--
          (1) to the extent that amounts are available for 
        obligation, may acquire services or, by condemnation or 
        otherwise, an interest in property, including an 
        interest in airspace immediately adjacent to and needed 
        for airports and other air navigation facilities owned 
        by the United States Government and operated by the 
        [Administrator] Administration;
          * * * * * * *
  (b) Duties and Powers.--When carrying out subsection (a) of 
this section, the [Administrator of] Chief Executive Officer of 
the Federal Aviation Administration--
          (1) * * *
          (2) may--
                  (A) * * *
          * * * * * * *
                  (E) use procedures other than competitive 
                procedures only when the property or services 
                needed by the [Administrator of the] Federal 
                Aviation Administration are available from only 
                one responsible source or only from a limited 
                number of responsible sources and no other type 
                of property or services will satisfy the needs 
                of the [Administrator] Administration; and
          * * * * * * *

Sec. 40111. Multiyear procurement contracts for services and related 
                    items

  (a) General Authority.--Notwithstanding section 1341(a)(1)(B) 
of title 31, the [Administrator of the] Federal Aviation 
Administration may make a contract of not more than 5 years for 
the following types of services and items of supply related to 
those services for which amounts otherwise would be available 
for obligation only in the fiscal year for which appropriated:
          (1) * * *
          * * * * * * *
  (b) Required Findings.--The [Administrator] Administration 
may make a contract under this section only if the 
[Administrator] Administration finds that--
          (1) there will be a continuing requirement for the 
        service consistent with current plans for the proposed 
        contract period;
          (2) providing the service will require a substantial 
        initial investment in plant or equipment, or will incur 
        a substantial contingent liability for assembling, 
        training, or transporting a specialized workforce; and
          (3) the contract will promote the best interests of 
        the United States by encouraging effective competition 
        and promoting economies in operation.
  (c) Considerations.--When making a contract under this 
section, the [Administrator] Administration shall be guided by 
the following:
          (1) The part of the cost of a plant or equipment 
        amortized as a cost of contract performance may not be 
        more than the ratio between the period of contract 
        performance and the anticipated useful commercial life 
        (instead of physical life) of the plant or equipment, 
        considering the location and specialized nature of the 
        plant or equipment, obsolescence, and other similar 
        factors.
          (2) The [Administrator] Administration shall consider 
        the desirability of--
                  (A) obtaining an option to renew the contract 
                for a reasonable period of not more than 3 
                years, at a price that does not include charges 
                for nonrecurring costs already amortized; and
                  (B) reserving in the [Administrator] 
                Administration the right, on payment of the 
                unamortized part of the cost of the plant or 
                equipment, to take title to the plant or 
                equipment under appropriate circumstances.
          * * * * * * *

Sec. 40112. Multiyear procurement contracts for property

  (a) General Authority.--Notwithstanding section 1341(a)(1)(B) 
of title 31 and to the extent that amounts otherwise are 
available for obligation, the [Administrator of the] Federal 
Aviation Administration may make a contract of more than one 
but not more than 5 fiscal years to purchase property, except a 
contract to construct, alter, or make a major repair or 
improvement to real property or a contract to purchase property 
to which section 111 of the Federal Property and Administrative 
Services Act of 1949 (40 U.S.C. 759) applies.
  (b) Required Findings.--The [Administrator] Administration 
may make a contract under this section if the [Administrator] 
Administration finds that--
          (1) the contract will promote the safety or 
        efficiency of the national airspace system and will 
        result in reduced total contract costs;
          (2) the minimum need for the property to be purchased 
        is expected to remain substantially unchanged during 
        the proposed contract period in terms of production 
        rate, procurement rate, and total quantities;
          (3) there is a reasonable expectation that throughout 
        the proposed contract period the [Administrator] 
        Administration will request appropriations for the 
        contract at the level required to avoid cancellation;
          (4) there is a stable design for the property to be 
        acquired and the technical risks associated with the 
        property are not excessive; and
          (5) the estimates of the contract costs and the 
        anticipated savings from the contract are realistic.
  (c) Regulations.--The [Administrator] Administration shall 
prescribe regulations for acquiring property under this section 
to promote the use of contracts under this section in a way 
that will allow the most efficient use of those contracts. The 
regulations may provide for a cancellation provision in the 
contract to the extent the provision is necessary and in the 
best interest of the United States. The provision may include 
consideration of recurring and nonrecurring costs of the 
contractor associated with producing the item to be delivered 
under the contract. The regulations shall provide that, to the 
extent practicable--
          (1) to broaden the aviation industrial base--
                  (A) * * *
          * * * * * * *
          (2) this section and regulations prescribed under 
        this section may not be carried out in a way that 
        precludes or curtails the existing ability of the 
        [Administrator] Administration to provide for--
                  (A) competition in producing items to be 
                delivered under a contract under this section; 
                or
                  (B) ending a prime contract when performance 
                is deficient with respect to cost, quality, or 
                schedule.
          * * * * * * *
  (e) Cancellation Payment and Notice of Cancellation 
Ceiling.--(1) * * *
  (2) Before awarding a contract under this section containing 
a cancellation ceiling of more than $100,000,000, the 
[Administrator] Administration shall give written notice of the 
proposed contract and cancellation ceiling to the Committee on 
Commerce, Science, and Transportation of the Senate and the 
Committee on Public Works and Transportation of the House of 
Representatives. The contract may not be awarded until the end 
of the 30-day period beginning on the date of the notice.
          * * * * * * *
  (g) Limitation.--This section and section 40111 shall not be 
effective to the extent they are inconsistent with the 
acquisition management system being implemented under section 
1334.

Sec. 40113. Administrative

  (a) General Authority.--The Secretary of Transportation [(or 
the Administrator of] and the Federal Aviation Administration 
with respect to aviation safety duties and powers designated to 
be carried out by the [Administrator)] Administration may take 
action the Secretary or [Administrator] Administration, as 
appropriate, considers necessary to carry out this part, 
including conducting investigations, prescribing regulations, 
standards, and procedures, and issuing orders.
  (b) Hazardous Material.--In carrying out this part, the 
Secretary [has] and the Administration have the same authority 
to regulate the transportation of hazardous material by air 
that the Secretary has under section 5103 of this title. 
However, this subsection does not prohibit or regulate the 
transportation of a firearm (as defined in section 232 of title 
18) or ammunition for a firearm, when transported by an 
individual for personal use.
  (c) Governmental Assistance.--[The Secretary (or the 
Administrator of the Federal Aviation Administration with 
respect to aviation safety duties and powers designated to be 
carried out by the Administrator)] In carrying out aviation 
safety functions, duties, and powers, the Federal Aviation 
Administration may use the assistance of the Administrator of 
the National Aeronautics and Space Administration and any 
research or technical department, agency, or instrumentality of 
the United States Government on matters related to aircraft 
fuel and oil, and to the design, material, workmanship, 
construction, performance, maintenance, and operation of 
aircraft, aircraft engines, propellers, appliances, and air 
navigation facilities. Each department, agency, and 
instrumentality may conduct scientific and technical research, 
investigations, and tests necessary to assist [the Secretary or 
Administrator of] the Federal Aviation Administration in 
carrying out this part. This part does not authorize 
duplicating laboratory research activities of a department, 
agency, or instrumentality.
  (d) Indemnification.--The [Administrator of the] Federal 
Aviation Administration may indemnify an officer or employee of 
the Administration against a claim or judgment arising out of 
an act that the [Administrator] Administration decides was 
committed within the scope of the official duties of the 
officer or employee.
  (e) Assistance to Foreign Aviation Authorities.--
          (1) Safety-related training and operational 
        services.--The [Administrator] Administration may 
        provide safety-related training and operational 
        services to foreign aviation authorities with or 
        without reimbursement, if the [Administrator] 
        Administration determines that providing such services 
        promotes aviation safety. To the extent practicable, 
        air travel reimbursed under this subsection shall be 
        conducted on United States air carriers.
          (2) Reimbursement sought.--The [Administrator] 
        Administration shall actively seek reimbursement for 
        services provided under this subsection from foreign 
        aviation authorities capable of providing such 
        reimbursement.
          (3) Crediting appropriations.--Funds received by the 
        [Administrator] Administration pursuant to this section 
        shall be credited to the appropriation from which the 
        expenses were incurred in providing such services.
          (4) Reporting.--Not later than December 31, 1995, and 
        annually thereafter, the [Administrator] Administration 
        shall transmit to Congress a list of the foreign 
        aviation authorities to which the [Administrator] 
        Administration provided services under this subsection 
        in the preceding fiscal year. Such list shall specify 
        the dollar value of such services and any reimbursement 
        received for such services.
  (f) Exemptions.--
          (1) FAA review of regulations.--Prior to issuing any 
        regulation or granting any exemption to a regulation 
        issued under this chapter that affects the 
        transportation of hazardous materials by air, the 
        Secretary shall provide the Administration an 
        opportunity for review, and the Administration may 
        disapprove such action if the Administration determines 
        that there would be an adverse effect on aviation 
        safety.
          (2) Proposed changes.--The Administration may, in the 
        interest of aviation safety, propose to the Secretary 
        regulatory changes affecting the transportation of 
        hazardous materials by air.
          (3) Enforcement.--Enforcement actions for violations 
        of this chapter or of any regulations issued under this 
        chapter that affect the transportation of hazardous 
        materials by air shall be brought by the 
        Administration.

Sec. 40114. Reports and records

  (a) Written Reports.--(1) Except as provided in this part, 
the Secretary of Transportation [(or the Administrator of] and 
the Federal Aviation Administration with respect to aviation 
safety duties and powers designated to be carried out by the 
[Administrator)] Administration shall make a written report of 
each proceeding and investigation under this part in which a 
formal hearing was held and shall provide a copy to each party 
to the proceeding or investigation. The report shall include 
the decision, conclusions, order, and requirements of the 
Secretary or [Administrator] Administration as appropriate.
  (2) The Secretary [(or the Administrator] and the 
Administration with respect to aviation safety duties and 
powers designated to be carried out by the [Administrator)] 
Administration shall have all reports, orders, decisions, and 
regulations the Secretary or [Administrator] Administration, as 
appropriate, issues or prescribes published in the form and way 
best adapted for public use. A publication of the Secretary or 
[Administrator] Administration is competent evidence of its 
contents.
          * * * * * * *

Sec. 40115. Withholding information

  (a) Objections to Disclosure.--(1) A person may object to the 
public disclosure of information--
          (A) in a record filed under this part; or
          (B) obtained under this part by the Secretary of 
        Transportation or Federal Aviation Administration or 
        State or the United States Postal Service.
  (2) An objection must be in writing and must state the 
reasons for the objection. The Secretary of Transportation or 
Federal Aviation Administration or State or the Postal Service 
shall order the information withheld from public disclosure 
when the appropriate Secretary or the Postal Service decides 
that disclosure of the information would--
          (A) prejudice the United States Government in 
        preparing and presenting its position in international 
        negotiations; or
          (B) have an adverse effect on the competitive 
        position of an air carrier in foreign air 
        transportation.
          * * * * * * *

Sec. 40117. Passenger facility fees

  (a) * * *
  (b) General Authority.--(1) The [Secretary of Transportation] 
Federal Aviation Administration may authorize under this 
section an eligible agency to impose a passenger facility fee 
of $1, $2, or $3 on each paying passenger of an air carrier or 
foreign air carrier boarding an aircraft at an airport the 
agency controls to finance an eligible airport-related project, 
including making payments for debt service on indebtedness 
incurred to carry out the project, to be carried out in 
connection with the airport or any other airport the agency 
controls.
  (c) Applications.--(1) An eligible agency must submit to the 
[Secretary] Administration an application for authority to 
impose a passenger facility fee. The application shall contain 
information and be in the form that the [Secretary] 
Administration may require by regulation.
  (2) Before submitting an application, the eligible agency 
must provide reasonable notice to, and an opportunity for 
consultation with, air carriers and foreign air carriers 
operating at the airport. The [Secretary] Administration shall 
prescribe regulations that define reasonable notice and contain 
at least the following requirements:
          (A) * * *
          * * * * * * *
  (3) After receiving an application, the [Secretary] 
Administration shall provide notice and an opportunity to air 
carriers, foreign air carriers, and other interested persons to 
comment on the application. The [Secretary] Administration 
shall make a final decision on the application not later than 
120 days after receiving it.
  (d) Limitations on Approving Applications.--The [Secretary] 
Administration may approve an application that an eligible 
agency has submitted under subsection (c) of this section to 
finance a specific project only if the [Secretary] 
Administration finds, based on the application, that--
          (1) the amount and duration of the proposed passenger 
        facility fee will result in revenue (including interest 
        and other returns on the revenue) that is not more than 
        the amount necessary to finance the specific project;
          (2) each project is an eligible airport-related 
        project that will--
                  (A) preserve or enhance capacity, safety, or 
                security of the national air transportation 
                system;
                  (B) reduce noise resulting from an airport 
                that is part of the system; or
                  (C) provide an opportunity for enhanced 
                competition between or among air carriers and 
                foreign air carriers; and
          (3) the application includes adequate justification 
        for each of the specific projects.
  (e) Limitations on Imposing Fees.--(1) An eligible agency may 
impose a passenger facility fee only--
          (A) if the [Secretary] Administration approves an 
        application that the agency has submitted under 
        subsection (c) of this section; and
          (B) subject to terms the [Secretary] Administration 
        may prescribe to carry out the objectives of this 
        section.
  (2) A passenger facility fee may not be collected from a 
passenger--
          (A) for more than 2 boardings on a one-way trip or a 
        trip in each direction of a round trip;
          (B) for the boarding to an eligible place under 
        subchapter II of chapter 417 of this title for which 
        essential air service compensation is paid under 
        subchapter II;
          (C) for a project the [Secretary] Administration does 
        not approve under this section before October 1, 1993, 
        if, during the fiscal year ending September 30, 1993, 
        the amount available for obligation under subchapter II 
        of chapter 417 of this title is less than $38,600,000, 
        except that this clause--
                  (i) does not apply if the amount available 
                for obligation under subchapter II of chapter 
                417 of this title is less than $38,600,000 
                because of sequestration or other general 
                appropriations reductions applied 
                proportionately to appropriations accounts 
                throughout an appropriation law; and
                  (ii) does not affect the authority of the 
                [Secretary] Administration to approve the 
                imposition of a fee or the use of revenues, 
                derived from a fee imposed under an approval 
                made under this section, by a public agency 
                that has received an approval to impose a fee 
                under this section before September 30, 1993, 
                regardless of whether the fee is being imposed 
                on September 30, 1993; and
          (D) 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.
  (f) Limitations on Contracts, Leases, and Use Agreements.--
(1) A contract between an air carrier or foreign air carrier 
and an eligible agency made at any time may not impair the 
authority of the agency to impose a passenger facility fee or 
to use the passenger facility revenue as provided in this 
section.
  (2) A project financed with a passenger facility fee may not 
be subject to an exclusive long-term lease or use agreement of 
an air carrier or foreign air carrier, as defined by 
regulations of the [Secretary] Administration.
  (3) A lease or use agreement of an air carrier or foreign air 
carrier related to a project whose construction or expansion 
was financed with a passenger facility fee may not restrict the 
eligible agency from financing, developing, or assigning new 
capacity at the airport with passenger facility revenue.
          * * * * * * *
  (h) Compliance.--(1) As necessary to ensure compliance with 
this section, the [Secretary] Administration shall prescribe 
regulations requiring recordkeeping and auditing of accounts 
maintained by an air carrier or foreign air carrier and its 
agent collecting a passenger facility fee and by the eligible 
agency imposing the fee.
  (2) The [Secretary] Administration periodically shall audit 
and review the use by an eligible agency of passenger facility 
revenue. After review and a public hearing, the [Secretary] 
Administration may end any part of the authority of the agency 
to impose a passenger facility fee to the extent the 
[Secretary] Administration decides that the revenue is not 
being used as provided in this section.
  (3) The [Secretary] Administration may set off amounts 
necessary to ensure compliance with this section against 
amounts otherwise payable to an eligible agency under 
subchapter I of chapter 471 of this title if the [Secretary] 
Administration decides a passenger facility fee is excessive or 
that passenger facility revenue is not being used as provided 
in this section.
  (i) Regulations.--The [Secretary] Administration shall 
prescribe regulations necessary to carry out this section. The 
regulations--
          (1) may prescribe the time and form by which a 
        passenger facility fee takes effect; and
          (2) shall--
                  (A) require an air carrier or foreign air 
                carrier and its agent to collect a passenger 
                facility fee that an eligible agency imposes 
                under this section;
                  (B) establish procedures for handling and 
                remitting money collected;
                  (C) ensure that the money, less a uniform 
                amount the [Secretary] Administration 
                determines reflects the average necessary and 
                reasonable expenses (net of interest accruing 
                to the carrier and agent after collection and 
                before remittance) incurred in collecting and 
                handling the fee, is paid promptly to the 
                eligible agency for which they are collected; 
                and
                  (D) require that the amount collected for any 
                air transportation be noted on the ticket for 
                that air transportation.
          * * * * * * *

Sec. 40119. Security and research and development activities

  (a) General Requirements.--The [Administrator of the] Federal 
Aviation Administration shall conduct research (including 
behavioral research) and development activities appropriate to 
develop, modify, test, and evaluate a system, procedure, 
facility, or device to protect passengers and property against 
acts of criminal violence and aircraft piracy.
  (b) Disclosure.--(1) Notwithstanding section 552 of title 5, 
the [Administrator] Administration shall prescribe regulations 
prohibiting disclosure of information obtained or developed in 
carrying out security or research and development activities 
under section 44501 (a) or (c), 44502(a) (1) or (3), (b), or 
(c), 44504, 44505, 44507, 44508, 44511, 44512, 44513, 44901, 
44903 (a), (b), (c), or (e), 44905, 44912, 44935, 44936, or 
44938 (a) or (b) of this title if the [Administrator] 
Administration decides disclosing the information would--
          (A) be an unwarranted invasion of personal privacy;
          (B) reveal a trade secret or privileged or 
        confidential commercial or financial information; or
          (C) be detrimental to the safety of passengers in air 
        transportation.
  (2) Paragraph (1) of this subsection does not authorize 
information to be withheld from a committee of Congress 
authorized to have the information.
  (c) Transfers of Duties and Powers Prohibited.--Except as 
otherwise provided by law, the [Administrator] Administration 
may not transfer a duty or power under this section to another 
department, agency, or instrumentality of the United States 
Government.
          * * * * * * *

                  CHAPTER 417--OPERATIONS OF CARRIERS

          * * * * * * *

                       SUBCHAPTER I--REQUIREMENTS

          * * * * * * *

Sec. 41703. Navigation of foreign civil aircraft

  (a) Permitted Navigation.--A foreign aircraft, not part of 
the armed forces of a foreign country, may be navigated in the 
United States only--
          (1) * * *
          * * * * * * *
          (3) if the Secretary of Transportation, after 
        consultation with the Federal Aviation Administration, 
        authorizes the navigation; and
  (b) Requirements for Authorizing Navigation.--The Secretary 
may authorize navigation under this section only if the 
Secretary, after consultation with the Federal Aviation 
Administration, decides the authorization is--
          (1) in the public interest; and
          (2) consistent with any agreement between the 
        Government and the government of a foreign country.
          * * * * * * *

Sec. 41714. Availability of slots

  (a) Making Slots Available for Essential Air Service.--
          (1) Operational authority.--If basic essential air 
        service under subchapter II of this chapter is to be 
        provided from an eligible point to a high density 
        airport (other than Washington National Airport), the 
        [Secretary of Transportation] Federal Aviation 
        Administration shall ensure that the air carrier 
        providing or selected to provide such service has 
        sufficient operational authority at the high density 
        airport to provide such service. The operational 
        authority shall allow flights at reasonable times 
        taking into account the needs of passengers with 
        connecting flights.
          (2) Exemptions.--If necessary to carry out the 
        objectives of paragraph (1), the [Secretary] 
        Administration shall by order grant exemptions from the 
        requirements of subparts K and S of part 93 of title 
        14, Code of Federal Regulations (pertaining to slots at 
        high density airports), to air carriers using Stage 3 
        aircraft or to commuter air carriers, unless such an 
        exemption would significantly increase operational 
        delays.
          (3) Assurance of access.--If the [Secretary] 
        Administration finds that an exemption under paragraph 
        (2) would significantly increase operational delays, 
        the [Secretary] Administration shall take such action 
        as may be necessary to ensure that an air carrier 
        providing or selected to provide basic essential air 
        service is able to obtain access to a high density 
        airport; except that the [Secretary] Administration 
        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 (including slots specifically designated as 
        essential air service slots and slots used for such 
        purposes) to and from such airport is at least 132 
        slots.
          (4) Action by the [secretary] administration.--The 
        [Secretary] Administration shall issue a final order 
        under this subsection on or before the 60th day after 
        receiving a request from an air carrier for operational 
        authority under this subsection.
  (b) Slots for Foreign Air Transportation.--
          (1) Exemptions.--If the [Secretary] Administration 
        finds it to be in the public interest at a high density 
        airport (other than Washington National Airport), the 
        [Secretary] Administration may grant by order 
        exemptions from the requirements of subparts K and S of 
        part 93 of title 14, Code of Federal Regulations 
        (pertaining to slots at high density airports), to 
        enable air carriers and foreign air carriers to provide 
        foreign air transportation using Stage 3 aircraft.
          (2) Slot withdrawals.--The [Secretary] Administration 
        may not withdraw a slot from an air carrier in order to 
        allocate that slot to a carrier to provide foreign air 
        transportation if the withdrawal of that slot would 
        result in the withdrawal of slots from an air carrier 
        at O'Hare International Airport under section 93.223 of 
        title 14, Code of Federal Regulations, in excess of the 
        total withdrawn from that air carrier as of October 31, 
        1993.
          (3) Equivalent rights of access.--The [Secretary] 
        Administration shall not take a slot at a high density 
        airport from an air carrier and award such slot to a 
        foreign air carrier if the Secretary of Transportation 
        determines that air carriers are not provided 
        equivalent rights of access to airports in the country 
        of which such foreign air carrier is a citizen.
  (c) Slots for New Entrants.--
          (1) In general.--If the [Secretary] Administration 
        finds it to be in the public interest and the 
        circumstances to be exceptional, the [Secretary] 
        Administration may by order grant exemptions from the 
        requirements under subparts K and S of part 93 of title 
        14, Code of Federal Regulations (pertaining to slots at 
        high density airports), to enable new entrant air 
        carriers to provide air transportation at high density 
        airports (other than Washington National Airport).
          (2) Period of effectiveness.--Exemptions issued under 
        this subsection shall cease to be in effect on or after 
        the date on which the final rules issued under 
        subsection (f) become effective.
  (d) Special Rules for Washington National Airport.--
          (1) In general.--Notwithstanding sections 6005(c)(5) 
        and 6009(e) of the Metropolitan Washington Airports Act 
        of 1986, or any provision of this section, the 
        [Secretary] Administration may, only under 
        circumstances determined by the [Secretary] 
        Administration to be exceptional, grant by order to an 
        air carrier currently holding or operating a slot at 
        Washington National Airport an exemption from 
        requirements under subparts K and S of part 93 of title 
        14, Code of Federal Regulations (pertaining to slots at 
        Washington National Airport), to enable that carrier to 
        provide air transportation with Stage 3 aircraft at 
        Washington National Airport; except that such exemption 
        shall not--
                  (A) * * *
          * * * * * * *
  (f) Rulemaking.--The [Secretary] Administration shall conduct 
a rulemaking proceeding based on the results of the study 
described in subsection (e). In the course of such proceeding, 
the [Secretary] Administration shall issue a notice of proposed 
rulemaking not later than August 1, 1995, and shall issue a 
final rule not later than 90 days after public comments are due 
on the notice of proposed rulemaking.
  (g) Weekend Operations.--The [Secretary] Administration shall 
consider the advisability of revising section 93.227 of title 
14, Code of Federal Regulations, so as to eliminate weekend 
schedules from the determination of whether the 80 percent 
standard of subsection (a)(1) of that section has been met.
  (h) Definitions.--In this section and section 41734(h), the 
following definitions apply:
          (1) * * *
          (2) High density airport.--The term ``high density 
        airport'' means an airport at which the [Administrator] 
        Administration limits the number of instrument flight 
        rule takeoffs and landings of aircraft.
  (i) Consultation With DOT.--In making determinations with 
respect to essential air service, exceptional circumstances, 
and the public interest, the Administration shall consult with 
the Secretary of Transportation.
          * * * * * * *

                          SUBPART III--SAFETY

         CHAPTER 441--REGISTRATION AND RECORDATION OF AIRCRAFT

          * * * * * * *

Sec. 44101. Operation of aircraft

  (a) Registration Requirement.--Except as provided in 
subsection (b) of this section, a person may operate an 
aircraft only when the aircraft is registered under section 
44103 of this title.
  (b) Exceptions.--A person may operate an aircraft in the 
United States that is not registered--
          (1) when authorized under section 40103(d) or 41703 
        of this title;
          (2) when it is an aircraft of the national defense 
        forces of the United States and is identified in a way 
        satisfactory to the [Administrator of the] Federal 
        Aviation Administration; and
          (3) for a reasonable period of time after a transfer 
        of ownership, under regulations prescribed by the 
        [Administrator] Administration.

Sec. 44102. Registration requirements

  (a) * * *
  (b) Duty To Define Certain Term.--In carrying out subsection 
(a)(1)(C) of this section, the [Secretary of Transportation] 
Federal Aviation Administration shall define ``based and 
primarily used in the United States''.

Sec. 44103. Registration of aircraft

  (a) General.--(1) On application of the owner of an aircraft 
that meets the requirements of section 44102 of this title, the 
[Administrator of the] Federal Aviation Administration shall--
          (A) register the aircraft; and
          (B) issue a certificate of registration to its owner.
  (2) The [Administrator] Administration may prescribe the 
extent to which an aircraft owned by the holder of a dealer's 
certificate of registration issued under section 44104(2) of 
this title also is registered under this section.
  (b) Controlled Substance Violations.--(1) The [Administrator] 
Administration may not issue an owner's certificate of 
registration under subsection (a)(1) of this section to a 
person whose certificate is revoked under section 44106 of this 
title during the 5-year period beginning on the date of the 
revocation, except--
          (A) as provided in section 44106(e)(2) of this title; 
        or
          (B) that the [Administrator] Administration may issue 
        the certificate to the person after the one-year period 
        beginning on the date of the revocation if the 
        [Administrator] Administration decides that the 
        aircraft otherwise meets the requirements of section 
        44102 of this title and that denial of a certificate 
        for the 5-year period--
                  (i) would be excessive considering the nature 
                of the offense or the act committed and the 
                burden the denial places on the person; or
                  (ii) would not be in the public interest.
  (2) A decision of the [Administrator] Administration under 
paragraph (1)(B)(i) or (ii) of this subsection is within the 
discretion of the [Administrator] Administration. That decision 
or failure to make a decision is not subject to administrative 
or judicial review.
          * * * * * * *

Sec. 44104. Registration of aircraft components and dealers' 
                    certificates of registration

  The [Administrator of the] Federal Aviation Administration 
may prescribe regulations--
          (1) in the interest of safety for registering and 
        identifying an aircraft engine, propeller, or 
        appliance; and
          (2) in the public interest for issuing, suspending, 
        and revoking a dealer's certificate of registration 
        under this chapter and for its use by a person 
        manufacturing, distributing, or selling aircraft.

Sec. 44105. Suspension and revocation of aircraft certificates

  The [Administrator of the] Federal Aviation Administration 
may suspend or revoke a certificate of registration issued 
under section 44103 of this title when the aircraft no longer 
meets the requirements of section 44102 of this title.

Sec. 44106. Revocation of aircraft certificates for controlled 
                    substance violations

  (a) Definition.--In this section, ``controlled substance'' 
has the same meaning given that term in section 102 of the 
Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 
U.S.C. 802).
  (b) Revocations.--(1) The [Administrator of the] Federal 
Aviation Administration shall issue an order revoking the 
certificate of registration for an aircraft issued to an owner 
under section 44103 of this title and any other certificate of 
registration that the owner of the aircraft holds under section 
44103, if the [Administrator] Administration finds that--
          (A) * * *
          * * * * * * *
  (c) Advice to Holders and Opportunity To Answer.--Before the 
[Administrator] Administration revokes a certificate under 
subsection (b) of this section, the [Administrator] 
Administration shall--
          (1) advise the holder of the certificate of the 
        charges or reasons on which the [Administrator] 
        Administration bases the proposed action; and
          (2) provide the holder of the certificate an 
        opportunity to answer the charges and state why the 
        certificate should not be revoked.
  (d) Appeals.--(1) A person whose certificate is revoked by 
the [Administrator] Administration under subsection (b) of this 
section may appeal the revocation order to the National 
Transportation Safety Board. The Board shall affirm or reverse 
the order after providing notice and a hearing on the record. 
In conducting the hearing, the Board is not bound by the 
findings of fact of the [Administrator] Administration.
  (2) When a person files an appeal with the Board under this 
subsection, the order of the [Administrator] Administration 
revoking the certificate is stayed. However, if the 
[Administrator] Administration advises the Board that safety in 
air transportation or air commerce requires the immediate 
effectiveness of the order--
          (A) the order remains effective; and
          (B) the Board shall dispose of the appeal not later 
        than 60 days after notification by the [Administrator] 
        Administration under this paragraph.
  (3) A person substantially affected by an order of the Board 
under this subsection may seek judicial review of the order 
under section 46110 of this title. The [Administrator] 
Administration shall be made a party to that judicial 
proceeding.
  (e) Acquittal.--(1) The [Administrator] Administration may 
not revoke, and the Board may not affirm a revocation of, a 
certificate of registration under this section on the basis of 
an activity described in subsection (b)(1)(A) of this section 
if the holder of the certificate is acquitted of all charges 
related to a controlled substance in an indictment or 
information arising from the activity.
  (2) If the [Administrator] Administration has revoked a 
certificate of registration of a person under this section 
because of an activity described in subsection (b)(1)(A) of 
this section, the [Administrator] Administration shall reissue 
a certificate to the person if the person--
          (A) subsequently is acquitted of all charges related 
        to a controlled substance in an indictment or 
        information arising from the activity; and
          (B) otherwise meets the requirements of section 44102 
        of this title.

Sec. 44107. Recordation of conveyances, leases, and security 
                    instruments

  (a) Establishment of System.--The [Administrator of the] 
Federal Aviation Administration shall establish a system for 
recording--
          (1) * * *
          * * * * * * *
  (c) Acknowledgment.--Except as the [Administrator] 
Administration otherwise may provide, a conveyance, lease, or 
instrument may be recorded under subsection (a) of this section 
only after it has been acknowledged before--
          (1) a notary public; or
          (2) another officer authorized under the laws of the 
        United States, a State, the District of Columbia, or a 
        territory or possession of the United States to 
        acknowledge deeds.
  (d) Records and Indexes.--The [Administrator] Administration 
shall--
          (1) keep a record of the time and date that each 
        conveyance, lease, and instrument is filed and recorded 
        with the [Administrator] Administration; and
          (2) record each conveyance, lease, and instrument 
        filed with the [Administrator] Administration, in the 
        order of their receipt, and index them by--
                  (A) the identifying description of the 
                aircraft, aircraft engine, or propeller, or 
                location specified in a lease or instrument 
                recorded under subsection (a)(2)(C) or (D) of 
                this section; and
                  (B) the names of the parties to each 
                conveyance, lease, and instrument.
          * * * * * * *

Sec. 44110. Information about aircraft ownership and rights

  The [Administrator of the] Federal Aviation Administration 
may provide by regulation for--
          (1) endorsing information on each certificate of 
        registration issued under section 44103 of this title 
        and each certificate issued under section 44704 of this 
        title about ownership of the aircraft for which each 
        certificate is issued; and
          (2) recording transactions affecting an interest in, 
        and for other records, proceedings, and details 
        necessary to decide the rights of a party related to, a 
        civil aircraft of the United States, aircraft engine, 
        propeller, appliance, or spare part.

Sec. 44111. Modifications in registration and recordation system for 
                    aircraft not providing air transportation

  (a) Application.--This section applies only to aircraft not 
used to provide air transportation.
  (b) Authority To Make Modifications.--The [Administrator of 
the] Federal Aviation Administration shall make modifications 
in the system for registering and recording aircraft necessary 
to make the system more effective in serving the needs of--
          (1) * * *
          * * * * * * *
  (d) Regulations.--(1) The [Administrator of the] Federal 
Aviation Administration shall prescribe regulations to carry 
out this section and provide a written explanation of how the 
regulations address each of the deficiencies and abuses 
described in subsection (c) of this section. In prescribing the 
regulations, the [Administrator of the] Federal Aviation 
Administration shall consult with the Administrator of Drug 
Enforcement, the Commissioner of Customs, other law enforcement 
officials of the United States Government, representatives of 
State and local law enforcement officials, representatives of 
the general aviation aircraft industry, representatives of 
users of general aviation aircraft, and other interested 
persons.
  (2) Regulations prescribed under this subsection shall 
require that--
          (A) each individual listed in an application for 
        registration of an aircraft provide with the 
        application the individual's driver's license number; 
        and
          (B) each person (not an individual) listed in an 
        application for registration of an aircraft provide 
        with the application the person's taxpayer identifying 
        number.
          * * * * * * *

                         CHAPTER 443--INSURANCE

          * * * * * * *

Sec. 44302. General authority

  (a) Insurance and Reinsurance.--(1) Subject to subsection (b) 
of this section and section 44305(a) of this title, the 
[Secretary of Transportation] Federal Aviation Administration 
may provide insurance and reinsurance against loss or damage 
arising out of any risk from the operation of an American 
aircraft or foreign-flag aircraft--
          (A) in foreign air commerce; or
          (B) between at least 2 places, all of which are 
        outside the United States.
  (2) An aircraft may be insured or reinsured for not more than 
its reasonable value as determined by the [Secretary] 
Administration. Insurance or reinsurance may be provided only 
when the [Secretary] Administration decides that the insurance 
cannot be obtained on reasonable terms from an insurance 
carrier.
  (b) Presidential Approval.--The [Secretary] Administration 
may provide insurance or reinsurance under subsection (a) of 
this section only with the approval of the President. The 
President may approve the insurance or reinsurance only after 
deciding that the continued operation of the American aircraft 
or foreign-flag aircraft to be insured or reinsured is 
necessary to carry out the foreign policy of the United States 
Government.
  (c) Consultation.--The President may require the [Secretary] 
Administration to consult with interested departments, 
agencies, and instrumentalities of the Government before 
providing insurance or reinsurance under this chapter.
  (d) Additional Insurance.--With the approval of the 
[Secretary] Administration, a person having an insurable 
interest in an aircraft may insure with other underwriters in 
an amount that is more than the amount insured with the 
[Secretary] Administration. However, the [Secretary] 
Administration may not benefit from the additional insurance. 
This subsection does not prevent the [Secretary] Administration 
from making contracts of coinsurance.

Sec. 44303. Coverage

  The [Secretary of Transportation] Federal Aviation 
Administration may provide insurance and reinsurance authorized 
under section 44302 of this title for the following:
          (1) * * *
          * * * * * * *

Sec. 44304. Reinsurance

  (a) General Authority.--To the extent the [Secretary of 
Transportation] Federal Aviation Administration is authorized 
to provide insurance under this chapter, the [Secretary] 
Administration may reinsure any part of the insurance provided 
by an insurance carrier. The [Secretary] Administration may 
reinsure with, transfer to, or transfer back to, the carrier 
any insurance or reinsurance provided by the [Secretary] 
Administration under this chapter.
  (b) Premium Levels.--The [Secretary] Administration may 
provide reinsurance at premiums not less than, or obtain 
reinsurance at premiums not higher than, the premiums the 
[Secretary] Administration establishes on similar risks or the 
premiums the insurance carrier charges for the insurance to be 
reinsured by the [Secretary] Administration, whichever is most 
advantageous to the [Secretary] Administration. However, the 
[Secretary] Administration may make allowances to the insurance 
carrier for expenses incurred in providing services and 
facilities that the [Secretary] Administration considers good 
business practice, except for payments by the carrier for the 
stimulation or solicitation of insurance business.

Sec. 44305. Insuring United States Government property

  (a) * * *
  (b) Premium Waivers and Indemnification.--With the approval 
required under subsection (a) of this section, the [Secretary 
of Transportation] Federal Aviation Administration may provide 
the insurance without premium at the request of the Secretary 
of Defense or the head of a department, agency, or 
instrumentality designated by the President when the Secretary 
of Defense or the designated head agrees to indemnify the 
[Secretary of Transportation] Federal Aviation Administration 
against all losses covered by the insurance. The Secretary of 
Defense and any designated head may make indemnity agreements 
with the [Secretary of Transportation] Federal Aviation 
Administration under this section.

Sec. 44306. Premiums and limitations on coverage and claims

  (a) Premiums Based on Risk.--To the extent practical, the 
premium charged for insurance or reinsurance under this chapter 
shall be based on consideration of the risk involved.
  (b) Time Limits.--The [Secretary of Transportation] Federal 
Aviation Administration may provide insurance and reinsurance 
under this chapter for a period of not more than 60 days. The 
period may be extended for additional periods of not more than 
60 days each only if the President decides, before each 
additional period, that the continued operation of the aircraft 
to be insured or reinsured is necessary to carry out the 
foreign policy of the United States Government.
  (c) Maximum Insured Amount.--The insurance policy on an 
aircraft insured or reinsured under this chapter shall specify 
a stated amount that is not more than the value of the 
aircraft, as determined by the [Secretary] Administration. A 
claim under the policy may not be paid for more than that 
stated amount.

Sec. 44307. Revolving fund

  (a) Existence, Disbursements, Appropriations, and Deposits.--
(1) There is a revolving fund in the Treasury. The Secretary of 
the Treasury shall disburse from the fund payments to carry out 
this chapter.
  (2) Necessary amounts to carry out this chapter may be 
appropriated to the fund. The amounts appropriated and other 
amounts received in carrying out this chapter shall be 
deposited in the fund.
  (b) Investment.--On request of the [Secretary of 
Transportation] Federal Aviation Administration, the Secretary 
of the Treasury may invest any part of the amounts in the 
revolving fund in interest-bearing securities of the United 
States Government. The interest on, and the proceeds from the 
sale or redemption of, the securities shall be deposited in the 
fund.
  (c) Excess Amounts.--The balance in the revolving fund in 
excess of an amount the [Secretary of Transportation] Federal 
Aviation Administration determines is necessary for the 
requirements of the fund and for reasonable reserves to 
maintain the solvency of the fund shall be deposited at least 
annually in the Treasury as miscellaneous receipts.
  (d) Expenses.--The [Secretary of Transportation] Federal 
Aviation Administration shall deposit annually an amount in the 
Treasury as miscellaneous receipts to cover the expenses the 
Government incurs when the [Secretary of Transportation] 
Federal Aviation Administration uses appropriated amounts in 
carrying out this chapter. The deposited amount shall equal an 
amount determined by multiplying the average monthly balance of 
appropriated amounts retained in the revolving fund by a 
percentage that is at least the current average rate payable on 
marketable obligations of the Government. The Secretary of the 
Treasury shall determine annually in advance the percentage 
applied.

Sec. 44308. Administrative

  (a) Commercial Practices.--The [Secretary of Transportation] 
Federal Aviation Administration may carry out this chapter 
consistent with commercial practices of the aviation insurance 
business.
  (b) Issuance of Policies and Disposition of Claims.--(1) The 
[Secretary] Administration may issue insurance policies to 
carry out this chapter. The [Secretary] Administration may 
prescribe the forms, amounts insured under the policies, and 
premiums charged. The [Secretary] Administration may change an 
amount of insurance or a premium for an existing policy only 
with the consent of the insured.
  (2) For a claim under insurance authorized by this chapter, 
the [Secretary] Administration may--
          (A) settle and pay the claim made for or against the 
        United States Government; and
          (B) pay the amount of a judgment entered against the 
        Government.
  (c) Underwriting Agent.--(1) The [Secretary] Administration 
may, and when practical shall, employ an insurance carrier or 
group of insurance carriers to act as an underwriting agent. 
The [Secretary] Administration may use the agent to adjust 
claims under this chapter, but claims may be paid only when 
approved by the [Secretary] Administration.
  (2) The [Secretary] Administration may pay reasonable 
compensation to an underwriting agent for servicing insurance 
the agent writes for the [Secretary] Administration. 
Compensation may include payment for reasonable expenses 
incurred by the agent but may not include a payment by the 
agent for stimulation or solicitation of insurance business.
  (3) Except as provided by this subsection, the [Secretary] 
Administration may not pay an insurance broker or other person 
acting in a similar capacity any consideration for arranging 
insurance when the [Secretary] Administration directly insures 
any part of the risk.
  (d) Budget.--The [Secretary] Administration shall submit 
annually a budget program for carrying out this chapter as 
provided for wholly owned Government corporations under chapter 
91 of title 31.
  (e) Accounts.--The [Secretary] Administration shall maintain 
a set of accounts. The Comptroller General shall audit those 
accounts under chapter 35 of title 31. Notwithstanding chapter 
35, the Comptroller General shall allow credit for expenditures 
under this chapter made consistent with commercial practices in 
the aviation insurance business when shown to be necessary 
because of the business activities authorized by this chapter.

Sec. 44309. Civil actions

  (a) * * *
          * * * * * * *
  (c) Time Requirements.--When an insurance claim is made under 
this chapter, the period during which, under section 2401 of 
title 28, a civil action must be brought under subsection (a) 
of this section is suspended until 60 days after the [Secretary 
of Transportation] Federal Aviation Administration denies the 
claim. The claim is deemed to be administratively denied if the 
[Secretary] Administration does not act on the claim not later 
than 6 months after filing, unless the [Secretary] 
Administration makes a different agreement with the claimant 
when there is good cause for an agreement.
  (d) Interpleader.--(1) If the [Secretary] Administration 
admits the Government owes money under an insurance claim under 
this chapter and there is a dispute about the person that is 
entitled to payment, the Government may bring a civil action of 
interpleader in a district court of the United States against 
the persons that may be entitled to payment. The action may be 
brought in the judicial district for the District of Columbia 
or in the judicial district in which any party resides.
          * * * * * * *

Sec. 44310. Ending effective date

  The authority of the [Secretary of Transportation] Federal 
Aviation Administration to provide insurance and reinsurance 
under this chapter is not effective after September 30, 1997.

            CHAPTER 445--FACILITIES, PERSONNEL, AND RESEARCH

          * * * * * * *

Sec. 44501. Plans and policy

  (a) Long Range Plans and Policy Requirements.--The 
[Administrator of the] Federal Aviation Administration shall 
make long range plans and policy for the orderly development 
and use of the navigable airspace, and the orderly development 
and location of air navigation facilities, that will best meet 
the needs of, and serve the interests of, civil aeronautics and 
the national defense, except for needs of the armed forces that 
are peculiar to air warfare and primarily of military concern.
  (b) Airway Capital Investment Plan.--The [Administrator of 
the] Federal Aviation Administration shall review, revise, and 
publish a national airways system plan, known as the Airway 
Capital Investment Plan, before the beginning of each fiscal 
year. The plan shall set forth--
          (1) for a 10-year period, the research, engineering, 
        and development programs and the facilities and 
        equipment that the [Administrator] Administration 
        considers necessary for a system of airways, air 
        traffic services, and navigation aids that will--
                  (A) meet the forecasted needs of civil 
                aeronautics;
                  (B) meet the requirements that the Secretary 
                of Defense establishes for the support of the 
                national defense; and
                  (C) provide the highest degree of safety in 
                air commerce;
          * * * * * * *
          (4) a 10-year investment plan that considers long 
        range objectives that the [Administrator] 
        Administration considers necessary to--
                  (A) ensure that safety is given the highest 
                priority in providing for a safe and efficient 
                airway system; and
                  (B) meet the current and projected growth of 
                aviation and the requirements of interstate 
                commerce, the United States Postal Service, and 
                the national defense.
  (c) National Aviation Research Plan.--(1) The [Administrator 
of the] Federal Aviation Administration shall prepare and 
publish annually a national aviation research plan and submit 
the plan to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Science, 
Space, and Technology of the House of Representatives. The plan 
shall be submitted not later than the date of submission of the 
President's budget to Congress.
  (2)(A) The plan shall describe, for a 15-year period, the 
research, engineering, and development that the [Administrator 
of the] Federal Aviation Administration considers necessary--
          (i) to ensure the continued capacity, safety, and 
        efficiency of aviation in the United States, 
        considering emerging technologies and forecasted needs 
        of civil aeronautics; and
          (ii) to provide the highest degree of safety in air 
        travel.
  (B) The plan shall cover all research conducted under 
sections 40119, 44504, 44505, 44507, 44511-44513, and 44912 of 
this title and shall identify complementary and coordinated 
research efforts that the Administrator of the National 
Aeronautics and Space Administration conducts with amounts 
specifically appropriated to the Administration. For projects 
for which the [Administrator of the] Federal Aviation 
Administration anticipates requesting an appropriation, the 
plan shall include--
          (i) for the first 2 years of the plan, detailed 
        annual estimates of the schedule, cost, and work-force 
        levels for each research project, including a 
        description of the scope and content of each major 
        contract, grant, or interagency agreement;
          (ii) for the 3d, 4th, and 5th years of the plan, 
        estimates of the total cost of each major project and 
        any additional major research projects that may be 
        required to meet long-term objectives and that may have 
        significant impact on future appropriations 
        requirements;
          (iii) for the 6th and subsequent years of the plan, 
        the long-term objectives the [Administrator of the] 
        Federal Aviation Administration considers necessary to 
        ensure that aviation safety will be given the highest 
        priority; and
          (iv) details of a program to disseminate to the 
        private sector the results of aviation research 
        conducted by the [Administrator of the] Federal 
        Aviation Administration, including any new technologies 
        developed.
  (3) Subject to section 40119(b) of this title and regulations 
prescribed under section 40119(b), the [Administrator of the] 
Federal Aviation Administration shall submit to the committees 
named in paragraph (1) of this subsection an annual report on 
the accomplishments of the research completed during the prior 
fiscal year. The report shall be submitted with the plan 
required under paragraph (1) and be organized to allow 
comparison with the plan in effect for the prior fiscal year.

Sec. 44502. General facilities and personnel authority

  (a) General Authority.--(1) The [Administrator of the] 
Federal Aviation Administration may--
          (A) acquire, establish, improve, operate, and 
        maintain air navigation facilities; and
          (B) provide facilities and personnel to regulate and 
        protect air traffic.
  (2) The cost of site preparation work associated with 
acquiring, establishing, or improving an air navigation 
facility under paragraph (1)(A) of this subsection shall be 
charged to amounts available for that purpose appropriated 
under section 48101(a) of this title. The [Secretary of 
Transportation] Federal Aviation Administration may make an 
agreement with an airport owner or sponsor (as defined in 
section 47102 of this title) so that the owner or sponsor will 
provide the work and be paid or reimbursed by the [Secretary] 
Administration from the appropriated amounts.
  (3) The [Secretary of Transportation] Federal Aviation 
Administration may authorize a department, agency, or 
instrumentality of the United States Government to carry out 
any duty or power under this subsection with the consent of the 
head of the department, agency, or instrumentality.
          (4) Purchase of instrument landing system.--
                  (A) Establishment of program.--The 
                [Secretary] Administration shall purchase 
                precision approach instrument landing system 
                equipment for installation at airports on an 
                expedited basis.
                  (B) Authorization.--No less than $30,000,000 
                of the amounts appropriated under section 
                48101(a) for each of fiscal years 1995 and 1996 
                shall be used for the purpose of carrying out 
                this paragraph, including acquisition, site 
                preparation work, installation, and related 
                expenditures.
  (b) Certification of Necessity.--Except for Government money 
expended under this part or for a military purpose, Government 
money may be expended to acquire, establish, construct, 
operate, repair, alter, or maintain an air navigation facility 
only if the [Administrator of the] Federal Aviation 
Administration certifies in writing that the facility is 
reasonably necessary for use in air commerce or for the 
national defense. An interested person may apply for a 
certificate for a facility to be acquired, established, 
constructed, operated, repaired, altered, or maintained by or 
for the person.
  (c) Ensuring Conformity With Plans and Policies.--(1) To 
ensure that conformity with plans and policies for, and 
allocation of, airspace by the [Administrator of the] Federal 
Aviation Administration under section 40103(b)(1) of this 
title, a military airport, military landing area, or missile or 
rocket site may be acquired, established, or constructed, or a 
runway may be altered substantially, only if the [Administrator 
of the] Federal Aviation Administration is given reasonable 
prior notice so that the [Administrator of the] Federal 
Aviation Administration may advise the appropriate committees 
of Congress and interested departments, agencies, and 
instrumentalities of the Government on the effect of the 
acquisition, establishment, construction, or alteration on the 
use of airspace by aircraft. A disagreement between the 
[Administrator of the] Federal Aviation Administration and the 
Secretary of Defense or the Administrator of the National 
Aeronautics and Space Administration may be appealed to the 
President for a final decision.
  (2) To ensure conformity, an airport or landing area not 
involving the expenditure of Government money may be 
established or constructed, or a runway may be altered 
substantially, only if the [Administrator of the] Federal 
Aviation Administration is given reasonable prior notice so 
that the [Administrator] Administration may provide advice on 
the effects of the establishment, construction, or alteration 
on the use of airspace by aircraft.
          * * * * * * *
  (f) Transfers of Instrument Landing Systems.--An airport may 
transfer, without consideration, to the [Administrator of the] 
Federal Aviation Administration an instrument landing system 
(and associated approach lighting equipment and runway visual 
range equipment) that conforms to performance specifications of 
the [Administrator] Administration if a Government airport aid 
program, airport development aid program, or airport 
improvement project grant was used to assist in purchasing the 
system. The [Administrator] Administration shall accept the 
system and operate and maintain it under criteria of the 
[Administrator] Administration.

Sec. 44503. Reducing nonessential expenditures

  The [Secretary of Transportation] Federal Aviation 
Administration shall attempt to reduce the capital, operating, 
maintenance, and administrative costs of the national airport 
and airway system to the maximum extent practicable consistent 
with the highest degree of aviation safety. At least annually, 
the [Secretary] Administration shall consult with and consider 
the recommendations of users of the system on ways to reduce 
nonessential expenditures of the United States Government for 
aviation. The [Secretary] Administration shall give particular 
attention to a recommendation that may reduce, with no adverse 
effect on safety, future personnel requirements and costs to 
the Government required to be recovered from user charges.

Sec. 44504. Improved aircraft, aircraft engines, propellers, and 
                    appliances

  (a) Developmental Work and Service Testing.--The 
[Administrator of the] Federal Aviation Administration may 
conduct or supervise developmental work and service testing to 
improve aircraft, aircraft engines, propellers, and appliances.
  (b) Research.--The [Administrator] Administration shall 
conduct or supervise research--
          (1) * * *
          * * * * * * *
  (c) Authority To Buy Items Offering Special Advantages.--In 
carrying out this section, the [Administrator] Administration, 
by negotiation or otherwise, may buy or exchange experimental 
aircraft, aircraft engines, propellers, and appliances that the 
[Administrator] Administration decides may offer special 
advantages to aeronautics.

Sec. 44505. Systems, procedures, facilities, and devices

  (a) General Requirements.--(1) The [Administrator of the] 
Federal Aviation Administration shall--
          (A) develop, alter, test, and evaluate systems, 
        procedures, facilities, and devices, and define their 
        performance characteristics, to meet the needs for safe 
        and efficient navigation and traffic control of civil 
        and military aviation, except for needs of the armed 
        forces that are peculiar to air warfare and primarily 
        of military concern; and
          (B) select systems, procedures, facilities, and 
        devices that will best serve those needs and promote 
        maximum coordination of air traffic control and air 
        defense systems.
  (2) The [Administrator] Administration may make contracts to 
carry out this subsection without regard to section 3324(a) and 
(b) of title 31.
  (3) When a substantial question exists under paragraph (1) of 
this subsection about whether a matter is of primary concern to 
the armed forces, the [Administrator] Administration shall 
decide whether the [Administrator] Administration or the 
Secretary of the appropriate military department has 
responsibility. The [Administrator] Administration shall be 
given technical information related to each research and 
development project of the armed forces that potentially 
applies to, or potentially conflicts with, the common system to 
ensure that potential application to the common system is 
considered properly and that potential conflicts with the 
system are eliminated.
  (b) Research on Human Factors and Simulation Models.--The 
[Administrator] Administration shall conduct or supervise 
research--
          (1) * * *
          * * * * * * *
  (c) Research on Developing and Maintaining a Safe and 
Efficient System.--The [Administrator] Administration shall 
conduct or supervise research on--
          (1) * * *
          * * * * * * *
  (d) Cooperative Agreements.--The [Administrator] 
Administration may enter into cooperative agreements on a cost-
shared basis with Federal and non-Federal entities that the 
[Administrator] Administration may select in order to conduct, 
encourage, and promote aviation research, engineering, and 
development, including the development of prototypes and 
demonstration models.

Sec. 44506. Air traffic controllers

  (a) Research on Effect of Automation on Performance.--To 
develop the means necessary to establish appropriate selection 
criteria and training methodologies for the next generation of 
air traffic controllers, the [Administrator of the] Federal 
Aviation Administration shall conduct research to study the 
effect of automation on the performance of the next generation 
of air traffic controllers and the air traffic control system. 
The research shall include investigating--
          (1) * * *
          * * * * * * *
  (b) Research on Human Factor Aspects of Automation.--The 
[Administrators of the Federal Aviation Administration and] 
Federal Aviation Administration and the Administrator of the 
National Aeronautics and Space Administration may make an 
agreement for the use of the National Aeronautics and Space 
Administration's unique human factor facilities and expertise 
in conducting research activities to study the human factor 
aspects of the highly automated environment for the next 
generation of air traffic controllers. The research activities 
shall include investigating--
          (1) human perceptual capabilities and the effect of 
        computer-aided decision making on the workload and 
        performance of air traffic controllers;
          (2) information management techniques for advanced 
        air traffic control display systems; and
          (3) air traffic controller workload and performance 
        measures, including the development of predictive 
        models.
  (c) Collegiate Training Initiative.--(1) The [Administrator 
of the] Federal Aviation Administration may maintain the 
Collegiate Training Initiative program by making new agreements 
and continuing existing agreements with institutions of higher 
education (as defined by the [Administrator] Administration) 
under which the institutions prepare students for the position 
of air traffic controller with the [Department of 
Transportation] Administration (as defined in section 2109 of 
title 5). The [Administrator] Administration may establish 
standards for the entry of institutions into the program and 
for their continued participation.
  (2)(A) The [Administrator of the] Federal Aviation 
Administration may appoint an individual who has successfully 
completed a course of training in a program described in 
paragraph (1) of this subsection to the position of air traffic 
controller noncompetitively in the excepted service (as defined 
in section 2103 of title 5). An individual appointed under this 
paragraph serves at the pleasure of the [Administrator] 
Administration, subject to section 7511 of title 5. However, an 
appointment under this paragraph may be converted from one in 
the excepted service to a career conditional or career 
appointment in the competitive civil service (as defined in 
section 2102 of title 5) when the individual achieves full 
performance level air traffic controller status, as decided by 
the [Administrator] Administration.
  (B) The authority under subparagraph (A) of this paragraph to 
make appointments in the excepted service expires on October 6, 
1997, except that the [Administrator of the] Federal Aviation 
Administration may extend the authority for one or more 
successive one-year periods.
  (d) Staffing Report.--The [Administrator of the] Federal 
Aviation Administration shall submit annually to the Committee 
on [Public Works and Transportation] Transportation and 
Infrastructure of the House of Representatives and the 
Committee on Commerce, Science, and Transportation of the 
Senate a report containing--
          (1) the staffing standards used to determine the 
        number of air traffic controllers needed to operate the 
        air traffic control system of the United States;
          (2) a 3-year projection of the number of controllers 
        needed to be employed to operate the system to meet the 
        standards; and
          (3) a detailed plan for employing the controllers, 
        including projected budget requests.

Sec. 44507. Civil aeromedical research

  The Civil Aeromedical Institute established by section 
[106(j)] 1317 of this title may--
          (1) * * *
          (2) make comments to the [Administrator of the] 
        Federal Aviation Administration on human factors 
        aspects of proposed air safety regulations;
          (3) make comments to [the Administrator] the Federal 
        Aviation Board on human factors aspects of proposed 
        training programs, equipment requirements, standards, 
        and procedures for aviation personnel;
          (4) advise, assist, and represent the Federal 
        Aviation Administration in the human factors aspects of 
        joint projects between the Administration and the 
        National Aeronautics and Space Administration, other 
        departments, agencies, and instrumentalities of the 
        United States Government, industry, and governments of 
        foreign countries; and
          (5) provide medical consultation services to the 
        [Administrator] Administration about medical 
        certification of airmen.

Sec. 44508. Research advisory committee

  (a) Establishment and Duties.--(1) There is a research 
advisory committee in the Federal Aviation Administration. The 
committee shall--
          (A) provide advice and recommendations to the 
        [Administrator of the] Federal Aviation Administration 
        about needs, objectives, plans, approaches, content, 
        and accomplishments of the aviation research program 
        carried out under sections 40119, 44504, 44505, 44507, 
        44511-44513, and 44912 of this title;
          (B) assist in ensuring that the research is 
        coordinated with similar research being conducted 
        outside the Administration; and
          (C) review the operations of the regional centers of 
        air transportation excellence established under section 
        44513 of this title.
  (2) The [Administrator] Administration may establish 
subordinate committees to provide advice on specific areas of 
research conducted under sections 40119, 44504, 44505, 44507, 
44511-44513, and 44912 of this title.
  (b) Members, Chairman, Pay, and Expenses.--(1) The committee 
is composed of not more than 30 members appointed by the 
[Administrator] Administration from among individuals who are 
not employees of the Administration and who are specially 
qualified to serve on the committee because of their education, 
training, or experience. In appointing members of the 
committee, the [Administrator] Administration shall ensure that 
the regional centers of air transportation excellence, 
universities, corporations, associations, consumers, and other 
departments, agencies, and instrumentalities of the United 
States Government are represented.
  (2) The [Administrator] Administration shall designate the 
chairman of the committee.
  (3) A member of the committee serves without pay. However, 
the [Administrator] Administration may allow a member, when 
attending meetings of the committee or a subordinate committee, 
expenses as authorized under section 5703 of title 5.
  (c) Support Staff, Information, and Services.--The 
[Administrator] Administration shall provide support staff for 
the committee. On request of the committee, the [Administrator] 
Administration shall provide information, administrative 
services, and supplies that the [Administrator] Administration 
considers necessary for the committee to carry out its duties 
and powers.
  (d) Nonapplication.--Section 14 of the Federal Advisory 
Committee Act (5 App. U.S.C.) does not apply to the committee.
  (e) Use and Limitation of Amounts.--(1) Not more than .1 
percent of the amounts made available to conduct research under 
sections 40119, 44504, 44505, 44507, 44511-44513, and 44912 of 
this title may be used by the [Administrator] Administration to 
carry out this section.
  (2) A limitation on amounts available for obligation by or 
for the committee does not apply to amounts made available to 
carry out this section.

Sec. 44509. Demonstration projects

  The [Secretary of Transportation] Federal Aviation 
Administration may carry out under this chapter demonstration 
projects that the [Secretary] Administration considers 
necessary for research and development activities under this 
chapter.

Sec. 44510. Airway science curriculum grants

  (a) General Authority.--The [Administrator of the] Federal 
Aviation Administration may make competitive grant agreements 
with institutions of higher education having airway science 
curricula for the United States Government's share of the 
allowable direct costs of the following categories of items to 
the extent that the items are in support of airway science 
curricula:
          (1) the construction, purchase, or lease with an 
        option to purchase, of buildings and associated 
        facilities.
          (2) instructional material and equipment.
  (b) Cost Guidelines.--The [Administrator] Administration 
shall establish guidelines to determine the direct costs 
allowable under a grant to be made under this section. The 
Government's share of the allowable cost of a project assisted 
by a grant under this section may not be more than 65 percent.

Sec. 44511. Aviation research grants

  (a) General Authority.--The [Administrator of the] Federal 
Aviation Administration may make grants to institutions of 
higher education and nonprofit research organizations to 
conduct aviation research in areas the [Administrator] 
Administration considers necessary for the long-term growth of 
civil aviation.
  (b) Applications.--An institution of higher education or 
nonprofit research organization interested in receiving a grant 
under this section may submit an application to the 
[Administrator] Administration. The application must be in the 
form and contain the information the [Administrator] 
Administration requires.
  (c) Solicitation, Review, and Evaluation Process.--The 
[Administrator] Administration shall establish a solicitation, 
review, and evaluation process that ensures--
          (1) providing grants under this section for proposals 
        having adequate merit and relevancy to the mission of 
        the Administration;
          (2) a fair geographical distribution of grants under 
        this section; and
          (3) the inclusion of historically black institutions 
        of higher education and other minority nonprofit 
        research organizations for grant consideration under 
        this section.
  (d) Records.--Each person receiving a grant under this 
section shall maintain records that the [Administrator] 
Administration requires as being necessary to facilitate an 
effective audit and evaluation of the use of money provided 
under the grant.
  (e) Annual Report.--The [Administrator] Administration shall 
submit an annual report to the Committee on Science, Space, and 
Technology of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate on carrying 
out this section.

Sec. 44512. Catastrophic failure prevention research grants

  (a) General Authority.--The [Administrator of the] Federal 
Aviation Administration may make grants to institutions of 
higher education and nonprofit research organizations--
          (1) to conduct aviation research related to the 
        development of technologies and methods to assess the 
        risk of, and prevent, defects, failures, and 
        malfunctions of products, parts, processes, and 
        articles manufactured for use in aircraft, aircraft 
        engines, propellers, and appliances that could result 
        in a catastrophic failure of an aircraft; and
          (2) to establish centers of excellence for continuing 
        the research.
  (b) Solicitation, Application, Review, and Evaluation 
Process.--The [Administrator] Administration shall establish a 
solicitation, application, review, and evaluation process that 
ensures providing grants under this section for proposals 
having adequate merit and relevancy to the research described 
in subsection (a) of this section.

Sec. 44513. Regional centers of air transportation excellence

  (a) General Authority.--The [Administrator of the] Federal 
Aviation Administration may make grants to institutions of 
higher education to establish and operate regional centers of 
air transportation excellence. The locations shall be 
distributed in a geographically fair way.
          * * * * * * *
  (c) Applications.--An institution of higher education 
interested in receiving a grant under this section may submit 
an application to the [Administrator] Administration. The 
application must be in the form and contain the information 
that the [Administrator] Administration requires by regulation.
  (d) Selection Criteria.--The [Administrator] Administration 
shall select recipients of grants under this section on the 
basis of the following criteria:
          (1) * * *
          * * * * * * *
  (e) Expenditure Agreements.--A grant may be made under this 
section in a fiscal year only if the recipient makes an 
agreement with the [Administrator] Administration that the 
[Administrator] Administration requires to ensure that the 
recipient will maintain its total expenditures from all other 
sources for establishing and operating the center and related 
research activities at a level at least equal to the average 
level of those expenditures in the 2 fiscal years of the 
recipient occurring immediately before November 5, 1990.
  (f) Government's Share of Costs.--The United States 
Government's share of a grant under this section is 50 percent 
of the costs of establishing and operating the center and 
related research activities that the grant recipient carries 
out.
  (g) Allocating Amounts.--The [Administrator] Administration 
shall allocate amounts made available to carry out this section 
in a geographically fair way.

Sec. 44514. Flight service stations

  (a) Hours of Operation.--(1) The [Secretary of 
Transportation] Federal Aviation Administration may close, or 
reduce the hours of operation of, a flight service station in 
an area only if the service provided in the area after the 
closing or during the hours the station is not in operation is 
provided by an automated flight service station with at least 
model 1 equipment.
  (2) The [Secretary] Administration shall reopen a flight 
service station closed after March 24, 1987, but before July 
15, 1987, as soon as practicable if the service in the area in 
which the station is located has not been provided since the 
closing by an automatic flight service station with at least 
model 1 equipment. The hours of operation for the reopened 
station shall be the same as were the hours of operation for 
the station on March 25, 1987. After reopening the station, the 
[Secretary] Administration may close, or reduce the hours of 
operation of, the station only as provided in paragraph (1) of 
this subsection.
  (b) Manned Auxiliary Stations.--The [Secretary and the 
Administrator of the] Federal Aviation Administration shall 
establish a system of manned auxiliary flight service stations. 
The manned auxiliary flight service stations shall supplement 
the services of the planned consolidation to 61 automated 
flight service stations under the flight service station 
modernization program. A manned auxiliary flight service 
station shall be located in an area of unique weather or 
operational conditions that are critical to the safety of 
flight.

Sec. 44515. Advanced training facilities for maintenance technicians 
                    for air carrier aircraft

  (a) General Authority.--The [Administrator of the] Federal 
Aviation Administration may make grants to not more than 4 
vocational technical educational institutions to acquire or 
construct facilities to be used for the advanced training of 
maintenance technicians for air carrier aircraft.
  (b) Eligibility.--The [Administrator] Administration may make 
a grant under this section to a vocational technical 
educational institution only if the institution has a training 
curriculum that prepares aircraft maintenance technicians who 
hold airframe and power plant certificates under subpart D of 
part 65 of title 14, Code of Federal Regulations, to maintain, 
without direct supervision, air carrier aircraft.
  (c) Limitation.--A vocational technical educational 
institution may not receive more than a total of $5,000,000 in 
grants under this section.

                     CHAPTER 447--SAFETY REGULATION

          * * * * * * *

Sec. 44701. General requirements

  (a) Promoting Safety.--The [Administrator of the] Federal 
Aviation Administration shall promote safe flight of civil 
aircraft in air commerce by prescribing--
          (1) * * *
          * * * * * * *
          (5) regulations and minimum standards for other 
        practices, methods, and procedure the [Administrator] 
        Administration finds necessary for safety in air 
        commerce and national security.
  (b) Prescribing Minimum Safety Standards.--The 
[Administrator] Administration may prescribe minimum safety 
standards for--
          (1) an air carrier to whom a certificate is issued 
        under section 44705 of this title; and
          (2) operating an airport serving any passenger 
        operation of air carrier aircraft designed for at least 
        31 passenger seats.
  (c) Reducing and Eliminating Accidents.--The [Administrator] 
Administration shall carry out this chapter in a way that best 
tends to reduce or eliminate the possibility or recurrence of 
accidents in air transportation. However, the [Administrator] 
Administration is not required to give preference either to air 
transportation or to other air commerce in carrying out this 
chapter.
  (d) Considerations and Classification of Regulations and 
Standards.--When prescribing a regulation or standard under 
subsection (a) or (b) of this section or any of sections 44702-
44716 of this title, the [Administrator] Administration shall--
          (1) consider--
                  (A) the duty of an air carrier to provide 
                service with the highest possible degree of 
                safety in the public interest; and
                  (B) differences between air transportation 
                and other air commerce; and
          (2) classify a regulation or standard appropriate to 
        the differences between air transportation and other 
        air commerce.
  (e) Exemptions.--The [Administrator] Administration may grant 
an exemption from a requirement of a regulation prescribed 
under subsection (a) or (b) of this section or any of sections 
44702-44716 of this title if the [Administrator] Administration 
finds the exemption is in the public interest.
  (f) Cost-Benefit Analysis.--
          (1) In general.--For any regulation or standard to be 
        issued under subsection (a) or (b) that is likely to 
        result in annualized compliance costs in excess of 
        $25,000,000, the Administration shall, in addition to 
        other requirements in law, identify and publish 
        together with such regulation or standard the 
        following:
                  (A) The benefits of the regulation or 
                standard, quantified where appropriate and 
                feasible, and otherwise qualitatively 
                described, including in appropriate cases, the 
                nature and number of deaths or injuries that 
                the regulation or standard is designed to 
                prevent.
                  (B) The approximate number of aircraft, 
                airports, airmen, or cabin crew affected by the 
                regulation or standard.
                  (C) The probable cost of fulfilling the 
                requirements of the regulation or standard, 
                quantified where appropriate and feasible, and 
                otherwise qualitatively described, including in 
                appropriate cases any adverse effects on 
                competition or disruption or dislocation of air 
                service or other commercial practices engaged 
                in by the entities affected by such 
                requirements.
                  (D) Alternative means of achieving the 
                objective of the regulation or standard while 
                minimizing the costs, adverse effects on 
                competition, and the disruption or dislocation 
                of air service or the commercial practices 
                affected by the regulation or standard and a 
                statement as to why the Administration chose 
                the regulation or standard adopted in 
                preference to the alternatives considered.
          (2) Emergency.--In the case of an emergency, the 
        Chief Executive Officer or the Board may suspend the 
        application of this subsection for the duration of the 
        emergency.
          (3) Nonapplicability to advisory circulars.--This 
        subsection shall not apply to advisory circulars.

Sec. 44702. Issuance of certificates

  (a) General Authority and Applications.--The [Administrator 
of the] Federal Aviation Administration may issue airman 
certificates, type certificates, production certificates, 
airworthiness certificates, air carrier operating certificates, 
airport operating certificates, air agency certificates, and 
air navigation facility certificates under this chapter. An 
application for a certificate must--
          (1) be under oath when the [Administrator] 
        Administration requires; and
          (2) be in the form, contain information, and be filed 
        and served in the way the [Administrator] 
        Administration prescribes.
  (b) Considerations.--When issuing a certificate under this 
chapter, the [Administrator] Administration shall--
          (1) consider--
                  (A) the duty of an air carrier to provide 
                service with the highest possible degree of 
                safety in the public interest; and
                  (B) differences between air transportation 
                and other air commerce; and
          (2) classify a certificate according to the 
        differences between air transportation and other air 
        commerce.
  (c) Prior Certification.--The [Administrator] Administration 
may authorize an aircraft, aircraft engine, propeller, or 
appliance for which a certificate has been issued authorizing 
the use of the aircraft, aircraft engine, propeller, or 
appliance in air transportation to be used in air commerce 
without another certificate being issued.
  (d) Delegation.--(1) Subject to regulations, supervision, and 
review the [Administrator] Administration may prescribe, the 
[Administrator] Administration may delegate to a qualified 
private person, or to an employee under the supervision of that 
person, a matter related to--
          (A) the examination, testing, and inspection 
        necessary to issue a certificate under this chapter; 
        and
          (B) issuing the certificate.
  (2) The [Administrator] Administration may rescind a 
delegation under this subsection at any time for any reason the 
[Administrator] Administration considers appropriate.
  (3) A person affected by an action of a private person under 
this subsection may apply for reconsideration of the action by 
the [Administrator] Administration. On the [Administrator's] 
Administration's own initiative, the [Administrator] 
Administration may reconsider the action of a private person at 
any time. If the [Administrator] Administration decides on 
reconsideration that the action is unreasonable or unwarranted, 
the [Administrator] Administration shall change, modify, or 
reverse the action. If the [Administrator] Administration 
decides the action is warranted, the [Administrator] 
Administration shall affirm the action.

Sec. 44703. Airman certificates

  (a) General.--The [Administrator of the] Federal Aviation 
Administration shall issue an airman certificate to an 
individual when the [Administrator] Administration finds, after 
investigation, that the individual is qualified for, and 
physically able to perform the duties related to, the position 
to be authorized by the certificate.
  (b) Contents.--(1) An airman certificate shall--
          (A) be numbered and recorded by the [Administrator of 
        the] Federal Aviation Administration;
          (B) contain the name, address, and description of the 
        individual to whom the certificate is issued;
          (C) contain terms the [Administrator] Administration 
        decides are necessary to ensure safety in air commerce, 
        including terms on the duration of the certificate, 
        periodic or special examinations, and tests of physical 
        fitness;
          (D) specify the capacity in which the holder of the 
        certificate may serve as an airman with respect to an 
        aircraft; and
          (E) designate the class the certificate covers.
  (2) A certificate issued to a pilot serving in scheduled air 
transportation shall have the designation ``airline transport 
pilot'' of the appropriate class.
  (c) Appeals.--(1) An individual whose application for the 
issuance or renewal of an airman certificate has been denied 
may appeal the denial to the National Transportation Safety 
Board, except if the individual holds a certificate that--
          (A) is suspended at the time of denial; or
          (B) was revoked within one year from the date of the 
        denial.
  (2) The Board shall conduct a hearing on the appeal at a 
place convenient to the place of residence or employment of the 
applicant. The Board is not bound by findings of fact of the 
[Administrator of the] Federal Aviation Administration but is 
bound by all validly adopted interpretations of laws and 
regulations the [Administrator] Administration carries out 
unless the Board finds an interpretation is arbitrary, 
capricious, or otherwise not according to law. At the end of 
the hearing, the Board shall decide whether the individual 
meets the applicable regulations and standards. The 
[Administrator] Administration is bound by that decision.
  (d) Restrictions and Prohibitions.--The [Administrator of 
the] Federal Aviation Administration may--
          (1) restrict or prohibit issuing an airman 
        certificate to an alien; or
          (2) make issuing the certificate to an alien 
        dependent on a reciprocal agreement with the government 
        of a foreign country.
  (e) Controlled Substance Violations.--The [Administrator of 
the] Federal Aviation Administration may not issue an airman 
certificate to an individual whose certificate is revoked under 
section 44710 of this title except--
          (1) when the [Administrator] Administration decides 
        that issuing the certificate will facilitate law 
        enforcement efforts; and
          (2) as provided in section 44710(e)(2) of this title.
  (f) Modifications in System.--(1) The [Administrator of the] 
Federal Aviation Administration shall make modifications in the 
system for issuing airman certificates necessary to make the 
system more effective in serving the needs of pilots and 
officials responsible for enforcing laws related to the 
regulation of controlled substances (as defined in section 102 
of the Comprehensive Drug Abuse Prevention and Control Act of 
1970 (21 U.S.C. 802)). The modifications shall ensure positive 
and verifiable identification of each individual applying for 
or holding a certificate and shall address at least each of the 
following deficiencies in, and abuses of, the existing system:
          (A) * * *
          * * * * * * *
  (2) The [Administrator of the] Federal Aviation 
Administration shall prescribe regulations to carry out 
paragraph (1) of this subsection and provide a written 
explanation of how the regulations address each of the 
deficiencies and abuses described in paragraph (1). In 
prescribing the regulations, the [Administrator of the] Federal 
Aviation Administration shall consult with the Administrator of 
Drug Enforcement, the Commissioner of Customs, other law 
enforcement officials of the United States Government, 
representatives of State and local law enforcement officials, 
representatives of the general aviation aircraft industry, 
representatives of users of general aviation aircraft, and 
other interested persons.

Sec. 44704. Type certificates, production certificates, and 
                    airworthiness certificates

  (a) Type Certificates.--(1) The [Administrator of the] 
Federal Aviation Administration shall issue a type certificate 
for an aircraft, aircraft engine, or propeller, or for an 
appliance specified under paragraph (2)(A) of this subsection 
when the [Administrator] Administration finds that the 
aircraft, aircraft engine, propeller, or appliance is properly 
designed and manufactured, performs properly, and meets the 
regulations and minimum standards prescribed under section 
44701(a) of this title. On receiving an application for a type 
certificate, the [Administrator] Administration shall 
investigate the application and may conduct a hearing. The 
[Administrator] Administration shall make, or require the 
applicant to make, tests the [Administrator] Administration 
considers necessary in the interest of safety.
  (2) The [Administrator] Administration may--
          (A) specify in regulations those appliances that 
        reasonably require a type certificate in the interest 
        of safety;
          (B) include in a type certificate terms required in 
        the interest of safety; and
          (C) record on the certificate a numerical 
        specification of the essential factors related to the 
        performance of the aircraft, aircraft engine, or 
        propeller for which the certificate is issued.
  (b) Production Certificates.--The [Administrator] 
Administration shall issue a production certificate authorizing 
the production of a duplicate of an aircraft, aircraft engine, 
propeller, or appliance for which a type certificate has been 
issued when the [Administrator] Administration finds the 
duplicate will conform to the certificate. On receiving an 
application, the [Administrator] Administration shall inspect, 
and may require testing of, a duplicate to ensure that it 
conforms to the requirements of the certificate. The 
[Administrator] Administration may include in a production 
certificate terms required in the interest of safety.
  (c) Airworthiness Certificates.--(1) The registered owner of 
an aircraft may apply to the [Administrator] Administration for 
an airworthiness certificate for the aircraft. The 
[Administrator] Administration shall issue an airworthiness 
certificate when the [Administrator] Administration finds that 
the aircraft conforms to its type certificate and, after 
inspection, is in condition for safe operation. The 
[Administrator] Administration shall register each 
airworthiness certificate and may include appropriate 
information in the certificate. The certificate number or other 
individual designation the [Administrator] Administration 
requires shall be displayed on the aircraft. The 
[Administrator] Administration may include in an airworthiness 
certificate terms required in the interest of safety.
  (2) A person applying for the issuance or renewal of an 
airworthiness certificate for an aircraft for which ownership 
has not been recorded under section 44107 or 44110 of this 
title must submit with the application information related to 
the ownership of the aircraft the [Administrator] 
Administration decides is necessary to identify each person 
having a property interest in the aircraft and the kind and 
extent of the interest.

Sec. 44705. Air carrier operating certificates

  The [Administrator of the] Federal Aviation Administration 
shall issue an air carrier operating certificate to a person 
desiring to operate as an air carrier when the [Administrator] 
Administration finds, after investigation, that the person 
properly and adequately is equipped and able to operate safely 
under this part and regulations and standards prescribed under 
this part. An air carrier operating certificate shall--
          (1) contain terms necessary to ensure safety in air 
        transportation; and
          (2) specify the places to and from which, and the 
        airways of the United States over which, a person may 
        operate as an air carrier.

Sec. 44706. Airport operating certificates

  (a) General.--The [Administrator of the] Federal Aviation 
Administration shall issue an airport operating certificate to 
a person desiring to operate an airport--
          (1) that serves an air carrier operating aircraft 
        designed for at least 31 passenger seats;
          (2) that the [Administrator] Administration requires 
        to have a certificate; and
          (3) when the [Administrator] Administration finds, 
        after investigation, that the person properly and 
        adequately is equipped and able to operate safely under 
        this part and regulations and standards prescribed 
        under this part.
  (b) Terms.--An airport operating certificate issued under 
this section shall contain terms necessary to ensure safety in 
air transportation. Unless the [Administrator] Administration 
decides that it is not in the public interest, the terms shall 
include conditions related to--
          (1) operating and maintaining adequate safety 
        equipment, including firefighting and rescue equipment 
        capable of rapid access to any part of the airport used 
        for landing, takeoff, or surface maneuvering of an 
        aircraft; and
          (2) friction treatment for primary and secondary 
        runways that the [Secretary of Transportation] Federal 
        Aviation Administration decides is necessary.
  (c) Exemptions.--The [Administrator] Administration may 
exempt from the requirements of this section, related to 
firefighting and rescue equipment, an operator of an airport 
described in subsection (a) of this section having less than 
.25 percent of the total number of passenger boardings each 
year at all airports described in subsection (a) when the 
[Administrator] Administration decides that the requirements 
are or would be unreasonably costly, burdensome, or 
impractical.

Sec. 44707. Examining and rating air agencies

  The [Administrator of the] Federal Aviation Administration 
may examine and rate the following air agencies:
          (1) civilian schools giving instruction in flying or 
        repairing, altering, and maintaining aircraft, aircraft 
        engines, propellers, and appliances, on the adequacy of 
        instruction, the suitability and airworthiness of 
        equipment, and the competency of instructors.
          (2) repair stations and shops that repair, alter, and 
        maintain aircraft, aircraft engines, propellers, and 
        appliances, on the adequacy and suitability of the 
        equipment, facilities, and materials for, and methods 
        of, repair and overhaul, and the competency of the 
        individuals doing the work or giving instruction in the 
        work.
          (3) other air agencies the [Administrator] 
        Administration decides are necessary in the public 
        interest.

Sec. 44708. Inspecting and rating air navigation facilities

  The [Administrator of the] Federal Aviation Administration 
may inspect, classify, and rate an air navigation facility 
available for the use of civil aircraft on the suitability of 
the facility for that use.

Sec. 44709. Amendments, modifications, suspensions, and revocations of 
                    certificates

  (a) Reinspection and Reexamination.--The [Administrator of 
the] Federal Aviation Administration may reinspect at any time 
a civil aircraft, aircraft engine, propeller, appliance, air 
navigation facility, or air agency, or reexamine an airman 
holding a certificate issued under section 44703 of this title.
  (b) Actions of the [Administrator] Administration.--The 
[Administrator] Administration may issue an order amending, 
modifying, suspending, or revoking--
          (1) any part of a certificate issued under this 
        chapter if--
                  (A) the [Administrator] Administration 
                decides after conducting a reinspection, 
                reexamination, or other investigation that 
                safety in air commerce or air transportation 
                and the public interest require that action; or
                  (B) the holder of the certificate has 
                violated an aircraft noise or sonic boom 
                standard or regulation prescribed under section 
                44715(a) of this title; and
          (2) an airman certificate when the holder of the 
        certificate is convicted of violating section 13(a) of 
        the Fish and Wildlife Act of 1956 (16 U.S.C. 742j-
        1(a)).
  (c) Advice to Certificate Holders and Opportunity To 
Answer.--Before acting under subsection (b) of this section, 
the [Administrator] Administration shall advise the holder of 
the certificate of the charges or other reasons on which the 
[Administrator] Administration relies for the proposed action. 
Except in an emergency, the [Administrator] Administration 
shall provide the holder an opportunity to answer the charges 
and be heard why the certificate should not be amended, 
modified, suspended, or revoked.
  (d) Appeals.--(1) A person adversely affected by an order of 
the [Administrator] Administration under this section may 
appeal the order to the National Transportation Safety Board. 
After notice and an opportunity for a hearing, the Board may 
amend, modify, or reverse the order when the Board finds--
          (A) if the order was issued under subsection 
        (b)(1)(A) of this section, that safety in air commerce 
        or air transportation and the public interest do not 
        require affirmation of the order; or
          (B) if the order was issued under subsection 
        (b)(1)(B) of this section--
                  (i) that control or abatement of aircraft 
                noise or sonic boom and the public health and 
                welfare do not require affirmation of the 
                order; or
                  (ii) the order, as it is related to a 
                violation of aircraft noise or sonic boom 
                standards and regulations, is not consistent 
                with safety in air commerce or air 
                transportation.
  (2) The Board may modify a suspension or revocation of a 
certificate to imposition of a civil penalty.
  (3) When conducting a hearing under this subsection, the 
Board is not bound by findings of fact of the [Administrator] 
Administration but is bound by all validly adopted 
interpretations of laws and regulations the [Administrator] 
Administration carries out and of written agency policy 
guidance available to the public related to sanctions to be 
imposed under this section unless the Board finds an 
interpretation is arbitrary, capricious, or otherwise not 
according to law.
  (e) Effectiveness of Orders Pending Appeal.--When a person 
files an appeal with the Board under subsection (d) of the 
section, the order of the [Administrator] Administration is 
stayed. However, if the [Administrator] Administration advises 
the Board that an emergency exists and safety in air commerce 
or air transportation requires the order to be effective 
immediately--
          (1) the order is effective; and
          (2) the Board shall make a final disposition of the 
        appeal not later than 60 days after the [Administrator] 
        Administration so advises the Board.
  (f) Judicial Review.--A person substantially affected by an 
order of the Board under this section, or the [Administrator] 
Administration when the [Administrator] Administration decides 
that an order of the Board under this section will have a 
significant adverse impact on carrying out this part, may 
obtain judicial review of the order under section 46110 of this 
title. The [Administrator] Administration shall be made a party 
to the judicial review proceedings. Findings of fact of the 
Board are conclusive if supported by substantial evidence.

Sec. 44710. Revocations of airman certificates for controlled substance 
                    violations

  (a) Definition.--In this section, ``controlled substance'' 
has the same meaning given that term in section 102 of the 
Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 
U.S.C. 802).
  (b) Revocation.--(1) The [Administrator of the] Federal 
Aviation Administration shall issue an order revoking an airman 
certificate issued an individual under section 44703 of this 
title after the individual is convicted, under a law of the 
United States or a State related to a controlled substance 
(except a law related to simple possession of a controlled 
substance), of an offense punishable by death or imprisonment 
for more than one year if the [Administrator] Administration 
finds that--
          (A) an aircraft was used to commit, or facilitate the 
        commission of, the offense; and
          (B) the individual served as an airman, or was on the 
        aircraft, in connection with committing, or 
        facilitating the commission of, the offense.
  (2) The [Administrator] Administration shall issue an order 
revoking an airman certificate issued an individual under 
section 44703 of this title if the [Administrator] 
Administration finds that--
          (A) the individual knowingly carried out an activity 
        punishable, under a law of the United States or a State 
        related to a controlled substance (except a law related 
        to simple possession of a controlled substance), by 
        death or imprisonment for more than one year;
          (B) an aircraft was used to carry out or facilitate 
        the activity; and
          (C) the individual served as an airman, or was on the 
        aircraft, in connection with carrying out, or 
        facilitating the carrying out of, the activity.
  (3) The [Administrator] Administration has no authority under 
paragraph (1) of this subsection to review whether an airman 
violated a law of the United States or a State related to a 
controlled substance.
  (c) Advice to Holders and Opportunity To Answer.--Before the 
[Administrator] Administration revokes a certificate under 
subsection (b) of this section, the [Administrator] 
Administration must--
          (1) advise the holder of the certificate of the 
        charges or reasons on which the [Administrator] 
        Administration relies for the proposed revocation; and
          (2) provide the holder of the certificate an 
        opportunity to answer the charges and be heard why the 
        certificate should not be revoked.
  (d) Appeals.--(1) An individual whose certificate is revoked 
by the [Administrator] Administration under subsection (b) of 
this section may appeal the revocation order to the National 
Transportation Safety Board. The Board shall affirm or reverse 
the order after providing notice and an opportunity for a 
hearing on the record. When conducting the hearing, the Board 
is not bound by findings of fact of the [Administrator] 
Administration but shall be bound by all validly adopted 
interpretations of laws and regulations the [Administrator] 
Administration carries out and of written agency policy 
guidance available to the public related to sanctions to be 
imposed under this section unless the Board finds an 
interpretation is arbitrary, capricious, or otherwise not 
according to law.
  (2) When an individual files an appeal with the Board under 
this subsection, the order of the [Administrator] 
Administration revoking the certificate is stayed. However, if 
the [Administrator] Administration advises the Board that 
safety in air transportation or air commerce requires the 
immediate effectiveness of the order--
          (A) the order remains effective; and
          (B) the Board shall make a final disposition of the 
        appeal not later than 60 days after the [Administrator] 
        Administration so advises the Board.
  (3) An individual substantially affected by an order of the 
Board under this subsection, or the [Administrator] 
Administration when the [Administrator] Administration decides 
that an order of the Board will have a significant adverse 
effect on carrying out this part, may obtain judicial review of 
the order under section 46110 of this title. The 
[Administrator] Administration shall be made a party to the 
judicial review proceedings. Findings of fact of the Board are 
conclusive if supported by substantial evidence.
  (e) Acquittal.--(1) The [Administrator] Administration may 
not revoke, and the Board may not affirm a revocation of, an 
airman certificate under subsection (b)(2) of this section on 
the basis of an activity described in subsection (b)(2)(A) if 
the holder of the certificate is acquitted of all charges 
related to a controlled substance in an indictment or 
information arising from the activity.
  (2) If the [Administrator] Administration has revoked an 
airman certificate under this section because of an activity 
described in subsection (b)(2)(A) of this section, the 
[Administrator] Administration shall reissue a certificate to 
the individual if--
          (A) the individual otherwise satisfies the 
        requirements for a certificate under section 44703 of 
        this title; and
          (B)(i) the individual subsequently is acquitted of 
        all charges related to a controlled substance in an 
        indictment or information arising from the activity; or
          (ii) the conviction on which a revocation under 
        subsection (b)(1) of this section is based is reversed.
  (f) Waivers.--The [Administrator] Administration may waive 
the requirement of subsection (b) of this section that an 
airman certificate of an individual be revoked if--
          (1) a law enforcement official of the United States 
        Government or of a State requests a waiver; and
          (2) the [Administrator] Administration decides that 
        the waiver will facilitate law enforcement efforts.

Sec. 44711. Prohibitions and exemption

  (a) * * *
  (b) Exemption.--On terms the [Administrator of the] Federal 
Aviation Administration prescribes as being in the public 
interest, the [Administrator] Administration may exempt a 
foreign aircraft and airmen serving on the aircraft from 
subsection (a) of this section. However, an exemption from 
observing air traffic regulations may not be granted.

Sec. 44712. Emergency locator transmitters

  (a) Installation.--An emergency locator transmitter must be 
installed on a fixed-wing powered civil aircraft for use in air 
commerce.
  (b) Nonapplication.--Subsection (a) of this section does not 
apply to--
          (1) turbojet-powered aircraft;
          (2) aircraft when used in scheduled flights by 
        scheduled air carriers holding certificates issued by 
        the Secretary of Transportation under subpart II of 
        this part;
          (3) aircraft when used in training operations 
        conducted entirely within a 50 mile radius of the 
        airport from which the training operations begin;
          (4) aircraft when used in flight operations related 
        to design and testing, the manufacture, preparation, 
        and delivery of the aircraft, or the aerial application 
        of a substance for an agricultural purpose;
          (5) aircraft holding certificates from the 
        [Administrator of the] Federal Aviation Administration 
        for research and development;
          (6) aircraft when used for showing compliance with 
        regulations, crew training, exhibition, air racing, or 
        market surveys; and
          (7) aircraft equipped to carry only one individual.
  (c) Removal.--The [Administrator] Administration shall 
prescribe regulations specifying the conditions under which an 
aircraft subject to subsection (a) of this section may operate 
when its emergency locator transmitter has been removed for 
inspection, repair, alteration, or replacement.

Sec. 44713. Inspection and maintenance

  (a) General Equipment Requirements.--An air carrier shall 
make, or cause to be made, any inspection, repair, or 
maintenance of equipment used in air transportation as required 
by this part or regulations prescribed or orders issued by the 
[Administrator of the] Federal Aviation Administration under 
this part. A person operating, inspecting, repairing, or 
maintaining the equipment shall comply with those requirements, 
regulations, and orders.
  (b) Duties of Inspectors.--The [Administrator of the] Federal 
Aviation Administration shall employ inspectors who shall--
          (1) inspect aircraft, aircraft engines, propellers, 
        and appliances designed for use in air transportation, 
        during manufacture and when in use by an air carrier in 
        air transportation, to enable the [Administrator] 
        Administration to decide whether the aircraft, aircraft 
        engines, propellers, or appliances are in safe 
        condition and maintained properly; and
          (2) advise and cooperate with the air carrier during 
        that inspection and maintenance.
  (c) Unsafe Aircraft, Engines, Propellers, and Appliances.--
When an inspector decides that an aircraft, aircraft engine, 
propeller, or appliance is not in condition for safe operation, 
the inspector shall notify the air carrier in the form and way 
prescribed by the [Administrator of the] Federal Aviation 
Administration. For 5 days after the carrier is notified, the 
aircraft, engine, propeller, or appliance may not be used in 
air transportation or in a way that endangers air 
transportation unless the [Administrator] Administration or the 
inspector decides the aircraft, engine, propeller, or appliance 
is in condition for safe operation.
  (d) Modifications in System.--(1) The [Administrator of the] 
Federal Aviation Administration shall make modifications in the 
system for processing forms for major repairs or alterations to 
fuel tanks and fuel systems of aircraft not used to provide air 
transportation that are necessary to make the system more 
effective in serving the needs of users of the system, 
including officials responsible for enforcing laws related to 
the regulation of controlled substances (as defined in section 
102 of the Comprehensive Drug Abuse Prevention and Control Act 
of 1970 (21 U.S.C. 802)). The modifications shall address at 
least each of the following deficiencies in, and abuses of, the 
existing system:
          (A) the lack of a special identification feature to 
        allow the forms to be distinguished easily from other 
        major repair and alteration forms.
          (B) the excessive period of time required to receive 
        the forms at the Airmen and Aircraft Registry of the 
        Administration.
          (C) the backlog of forms waiting for processing at 
        the Registry.
          (D) the lack of ready access by law enforcement 
        officials to information contained on the forms.
  (2) The [Administrator of the] Federal Aviation 
Administration shall prescribe regulations to carry out 
paragraph (1) of this subsection and provide a written 
explanation of how the regulations address each of the 
deficiencies and abuses described in paragraph (1). In 
prescribing the regulations, the [Administrator of the] Federal 
Aviation Administration shall consult with the Administrator of 
Drug Enforcement, the Commissioner of Customs, other law 
enforcement officials of the United States Government, 
representatives of State and local law enforcement officials, 
representatives of the general aviation aircraft industry, 
representatives of users of general aviation aircraft, and 
other interested persons.

Sec. 44714. Aviation fuel standards

  The [Administrator of the] Federal Aviation Administration 
shall prescribe--
          (1) standards for the composition or chemical or 
        physical properties of an aircraft fuel or fuel 
        additive to control or eliminate aircraft emissions the 
        Administrator of the Environmental Protection Agency 
        decides under section 231 of the Clean Air Act (42 
        U.S.C. 7571) endanger the public health or welfare; and
          (2) regulations providing for carrying out and 
        enforcing those standards.

Sec. 44715. Controlling aircraft noise and sonic boom

  (a) Standards and Regulations.--(1) To relieve and protect 
the public health and welfare from aircraft noise and sonic 
boom, the [Administrator of the] Federal Aviation 
Administration shall prescribe--
          (A) standards to measure aircraft noise and sonic 
        boom; and
          (B) regulations to control and abate aircraft noise 
        and sonic boom.
  (2) The [Administrator of the] Federal Aviation 
Administration may prescribe standards and regulations under 
this subsection only after consulting with the Administrator of 
the Environmental Protection Agency. The standards and 
regulations shall be applied when issuing, amending, modifying, 
suspending, or revoking a certificate authorized under this 
chapter.
  (3) An original type certificate may be issued under section 
44704(a) of this title for an aircraft for which substantial 
noise abatement can be achieved only after the [Administrator 
of the] Federal Aviation Administration prescribes standards 
and regulations under this section that apply to that aircraft.
  (b) Considerations and Consultation.--When prescribing a 
standard or regulation under this section, the [Administrator 
of the] Federal Aviation Administration shall--
          (1) consider relevant information related to aircraft 
        noise and sonic boom;
          (2) consult with appropriate departments, agencies, 
        and instrumentalities of the United States Government 
        and State and interstate authorities;
          (3) consider whether the standard or regulation is 
        consistent with the highest degree of safety in air 
        transportation or air commerce in the public interest;
          (4) consider whether the standard or regulation is 
        economically reasonable, technologically practicable, 
        and appropriate for the applicable aircraft, aircraft 
        engine, appliance, or certificate; and
          (5) consider the extent to which the standard or 
        regulation will carry out the purposes of this section.
  (c) Proposed Regulations of Administrator of Environmental 
Protection Agency.--The Administrator of the Environmental 
Protection Agency shall submit to the [Administrator of the] 
Federal Aviation Administration proposed regulations to control 
and abate aircraft noise and sonic boom (including control and 
abatement through the use of the authority of the 
[Administrator of the] Federal Aviation Administration) that 
the Administrator of the Environmental Protection Agency 
considers necessary to protect the public health and welfare. 
The [Administrator of the] Federal Aviation Administration 
shall consider those proposed regulations and shall publish 
them in a notice of proposed regulations not later than 30 days 
after they are received. Not later than 60 days after 
publication, the [Administrator of the] Federal Aviation 
Administration shall begin a hearing at which interested 
persons are given an opportunity for oral and written 
presentations. Not later than 90 days after the hearing is 
completed and after consulting with the Administrator of the 
Environmental Protection Agency, the [Administrator of the] 
Federal Aviation Administration shall--
          (1) prescribe regulations as provided by this 
        section--
                  (A) substantially the same as the proposed 
                regulations submitted by the Administrator of 
                the Environmental Protection Agency; or
                  (B) that amend the proposed regulations; or
          (2) publish in the Federal Register--
                  (A) a notice that no regulation is being 
                prescribed in response to the proposed 
                regulations of the Administrator of the 
                Environmental Protection Agency;
                  (B) a detailed analysis of, and response to, 
                all information the Administrator of the 
                Environmental Protection Agency submitted with 
                the proposed regulations; and
                  (C) a detailed explanation of why no 
                regulation is being prescribed.
  (d) Consultation and Reports.--(1) If the Administrator of 
the Environmental Protection Agency believes that the action of 
the [Administrator of the] Federal Aviation Administration 
under subsection (c)(1)(B) or (2) of this section does not 
protect the public health and welfare from aircraft noise or 
sonic boom, consistent with the considerations in subsection 
(b) of this section, the Administrator of the Environmental 
Protection Agency shall consult with the [Administrator of the] 
Federal Aviation Administration and may request a report on the 
advisability of prescribing the regulation as originally 
proposed. The request, including a detailed statement of the 
information on which the request is based, shall be published 
in the Federal Register.
  (2) The [Administrator of the] Federal Aviation 
Administration shall report to the Administrator of the 
Environmental Protection Agency within the time, if any, 
specified in the request. However, the time specified must be 
at least 90 days after the date of the request. The report 
shall--
          (A) be accompanied by a detailed statement of the 
        findings of the [Administrator of the] Federal Aviation 
        Administration and the reasons for the findings;
          (B) identify any statement related to an action under 
        subsection (c) of this section filed under section 
        102(2)(C) of the National Environmental Policy Act of 
        1969 (42 U.S.C. 4332(2)(C));
          (C) specify whether and where that statement is 
        available for public inspection; and
          (D) be published in the Federal Register unless the 
        request proposes specific action by the [Administrator 
        of the] Federal Aviation Administration and the report 
        indicates that action will be taken.
  (e) Supplemental Reports.--The Administrator of the 
Environmental Protection Agency may request the [Administrator 
of the] Federal Aviation Administration to file a supplemental 
report if the report under subsection (d) of this section 
indicates that the proposed regulations under subsection (c) of 
this section, for which a statement under section 102(2)(C) of 
the Act (42 U.S.C. 4332(2)(C)) is not required, should not be 
prescribed. The supplemental report shall be published in the 
Federal Register within the time the Administrator of the 
Environmental Protection Agency specifies. However, the time 
specified must be at least 90 days after the date of the 
request. The supplemental report shall contain a comparison of 
the environmental effects, including those that cannot be 
avoided, of the action of the [Administrator of the] Federal 
Aviation Administration and the proposed regulations of the 
Administrator of the Environmental Protection Agency.
  (f) Exemptions.--An exemption from a standard or regulation 
prescribed under this section may be granted only if, before 
granting the exemption, the [Administrator of the] Federal 
Aviation Administration consults with the Administrator of the 
Environmental Protection Agency. However, if the [Administrator 
of the] Federal Aviation Administration finds that safety in 
air transportation or air commerce requires an exemption before 
the Administrator of the Environmental Protection Agency can be 
consulted, the exemption may be granted. The [Administrator of 
the] Federal Aviation Administration shall consult with the 
Administrator of the Environmental Protection Agency as soon as 
practicable after the exemption is granted.

Sec. 44716. Collision avoidance systems

  (a) Development and Certification.--The [Administrator of 
the] Federal Aviation Administration shall--
          (1) complete the development of the collision 
        avoidance system known as TCAS-II so that TCAS-II can 
        operate under visual and instrument flight rules and 
        can be upgraded to the performance standards applicable 
        to the collision avoidance system known as TCAS-III;
          (2) develop and carry out a schedule for developing 
        and certifying TCAS-II that will result in 
        certification not later than June 30, 1989; and
          (3) submit to Congress monthly reports on the 
        progress being made in developing and certifying TCAS-
        II.
  (b) Installation and Operation.--The [Administrator] 
Administration shall require by regulation that, not later than 
30 months after the date certification is made under subsection 
(a)(2) of this section, TCAS-II be installed and operated on 
each civil aircraft that has a maximum passenger capacity of at 
least 31 seats and is used to provide air transportation of 
passengers, including intrastate air transportation of 
passengers. The [Administrator] Administration may extend the 
deadline in this subsection for not more than 2 years if the 
[Administrator] Administration finds the extension is necessary 
to promote--
          (1) a safe and orderly transition to the operation of 
        a fleet of civil aircraft described in this subsection 
        equipped with TCAS-II; or
          (2) other safety objectives.
  (c) Operational Evaluation.--Not later than December 30, 
1990, the [Administrator] Administration shall establish a one-
year program to collect and assess safety and operational 
information from civil aircraft equipped with TCAS-II for the 
operational evaluation of TCAS-II. The [Administrator] 
Administration shall encourage foreign air carriers that 
operate civil aircraft equipped with TCAS-II to participate in 
the program.
  (d) Amending Schedule for Windshear Equipment.--The 
[Administrator] Administration shall consider the feasibility 
and desirability of amending the schedule for installing 
airborne low-altitude windshear equipment to make the schedule 
compatible with the schedule for installing TCAS-II.
  (e) Deadline for Development and Certification.--(1) The 
[Administrator] Administration shall complete developing and 
certifying TCAS-III as soon as possible.
  (2) Necessary amounts may be appropriated from the Airport 
and Airway Trust Fund established under section 9502 of the 
Internal Revenue Code of 1986 (26 U.S.C. 9502) to carry out 
this subsection.
  (f) Installing and Using Transponders.--The [Administrator] 
Administration shall prescribe regulations requiring that, not 
later than December 30, 1990, operating transponders with 
automatic altitude reporting capability be installed and used 
for aircraft operating in designated terminal airspace where 
radar service is provided for separation of aircraft. The 
[Administrator] Administration may provide for access to that 
airspace (except terminal control areas and airport radar 
service areas) by nonequipped aircraft if the [Administrator] 
Administration finds the access will not interfere with the 
normal traffic flow.

Sec. 44717. Aging aircraft

  (a) Inspections and Reviews.--The [Administrator of the] 
Federal Aviation Administration shall prescribe regulations 
that ensure the continuing airworthiness of aging aircraft. The 
regulations prescribed under subsection (a) of this section--
          (1) at least shall require the [Administrator] 
        Administration to make inspections, and review the 
        maintenance and other records, of each aircraft an air 
        carrier uses to provide air transportation that the 
        [Administrator] Administration decides may be necessary 
        to enable the [Administrator] Administration to decide 
        whether the aircraft is in safe condition and 
        maintained properly for operation in air 
        transportation;
          (2) at least shall require an air carrier to 
        demonstrate to the [Administrator] Administration, as 
        part of the inspection, that maintenance of the 
        aircraft's age-sensitive parts and components has been 
        adequate and timely enough to ensure the highest degree 
        of safety;
          (3) shall require the air carrier to make available 
        to the [Administrator] Administration the aircraft and 
        any records about the aircraft that the [Administrator] 
        Administration requires to carry out a review; and
          (4) shall establish procedures to be followed in 
        carrying out an inspection.
  (b) When and How Inspections and Reviews Shall Be Carried 
Out.--(1) Inspections and reviews required under subsection 
(a)(1) of this section shall be carried out as part of each 
heavy maintenance check of the aircraft conducted after the 
14th year in which the aircraft has been in service.
  (2) Inspections under subsection (a)(1) of this section shall 
be carried out as provided under section 44701(a)(2) (B) and 
(C) of this title.
  (c) Aircraft Maintenance Safety Programs.--The 
[Administrator] Administration shall establish--
          (1) a program to verify that air carriers are 
        maintaining their aircraft according to maintenance 
        programs approved by the [Administrator] 
        Administration;
          (2) a program--
                  (A) to provide inspectors and engineers of 
                the Administration with training necessary to 
                conduct auditing inspections of aircraft 
                operated by air carriers for corrosion and 
                metal fatigue; and
                  (B) to enhance participation of those 
                inspectors and engineers in those inspections; 
                and
          (3) a program to ensure that air carriers demonstrate 
        to the [Administrator] Administration their commitment 
        and technical competence to ensure the airworthiness of 
        aircraft that the carriers operate.
  (d) Foreign Air Transportation.--(1) The [Administrator] 
Administration shall take all possible steps to encourage 
governments of foreign countries and relevant international 
organizations to develop standards and requirements for 
inspections and reviews that--
          (A) will ensure the continuing airworthiness of aging 
        aircraft used by foreign air carriers to provide 
        foreign air transportation to and from the United 
        States; and
          (B) will provide passengers of those foreign air 
        carriers with the same level of safety that will be 
        provided passengers of air carriers by carrying out 
        this section.
  (2) Not later than September 30, 1994, the [Administrator] 
Administration shall report to Congress on carrying out this 
subsection.

Sec. 44718. Structures interfering with air commerce

  (a) Notice.--By regulation or by order when necessary, the 
[Secretary of Transportation] Federal Aviation Administration 
shall require a person to give adequate public notice, in the 
form and way the [Secretary] Administration prescribes, of the 
construction, alteration, establishment, or expansion, or the 
proposed construction, alteration, establishment, or expansion, 
of a structure or sanitary landfill when the notice will 
promote--
          (1) safety in air commerce; and
          (2) the efficient use and preservation of the 
        navigable airspace and of airport traffic capacity at 
        public-use airports.
  (b) Studies.--(1) Under regulations prescribed by the 
[Secretary] Administration, if the [Secretary] Administration 
decides that constructing or altering a structure may result in 
an obstruction of the navigable airspace or an interference 
with air navigation facilities and equipment or the navigable 
airspace, the [Secretary] Administration shall conduct an 
aeronautical study to decide the extent of any adverse impact 
on the safe and efficient use of the airspace, facilities, or 
equipment. In conducting the study, the [Secretary] 
Administration shall consider factors relevant to the efficient 
and effective use of the navigable airspace, including--
          (A) the impact on arrival, departure, and en route 
        procedures for aircraft operating under visual flight 
        rules;
          (B) the impact on arrival, departure, and en route 
        procedures for aircraft operating under instrument 
        flight rules;
          (C) the impact on existing public-use airports and 
        aeronautical facilities;
          (D) the impact on planned public-use airports and 
        aeronautical facilities; and
          (E) the cumulative impact resulting from the proposed 
        construction or alteration of a structure when combined 
        with the impact of other existing or proposed 
        structures.
  (2) On completing the study, the [Secretary] Administration 
shall issue a report disclosing completely the extent of the 
adverse impact on the safe and efficient use of the navigable 
airspace that the [Secretary] Administration finds will result 
from constructing or altering the structure.
  (c) Broadcast Applications and Tower Studies.--In carrying 
out laws related to a broadcast application and conducting an 
aeronautical study related to broadcast towers, the 
[Administrator of the] Federal Aviation Administration and the 
Federal Communications Commission shall take action necessary 
to coordinate efficiently--
          (1) the receipt and consideration of, and action on, 
        the application; and
          (2) the completion of any associated aeronautical 
        study.

Sec. 44719. Standards for navigational aids

  The [Secretary of Transportation] Federal Aviation 
Administration shall prescribe regulations on standards for 
installing navigational aids, including airport control towers. 
For each type of facility, the regulations shall consider at a 
minimum traffic density (number of aircraft operations without 
consideration of aircraft size), terrain and other obstacles to 
navigation, weather characteristics, passengers served, and 
potential aircraft operating efficiencies.

Sec. 44720. Meteorological services

  (a) Recommendations.--The [Administrator of the] Federal 
Aviation Administration shall make recommendations to the 
Secretary of Commerce on providing meteorological services 
necessary for the safe and efficient movement of aircraft in 
air commerce. In providing the services, the Secretary shall 
cooperate with the [Administrator] Administration and give 
complete consideration to those recommendations.
  (b) Promoting Safety and Efficiency.--To promote safety and 
efficiency in air navigation to the highest possible degree, 
the Secretary shall--
          (1) observe, measure, investigate, and study 
        atmospheric phenomena, and maintain meteorological 
        stations and offices, that are necessary or best suited 
        for finding out in advance information about probable 
        weather conditions;
          (2) provide reports to the [Administrator] Federal 
        Aviation Administration to persons engaged in civil 
        aeronautics that are designated by the [Administrator] 
        Federal Aviation Administration and to other persons 
        designated by the Secretary in a way and with a 
        frequency that best will result in safety in, and 
        facilitating, air navigation;
          * * * * * * *

Sec. 44721. Aeronautical maps and charts

  (a) Publication.--(1) The [Administrator of the] Federal 
Aviation Administration may arrange for the publication of 
aeronautical maps and charts necessary for the safe and 
efficient movement of aircraft in air navigation, using the 
facilities and assistance of departments, agencies, and 
instrumentalities of the United States Government as far as 
practicable.
  (2) In carrying out paragraph (1) of this subsection, the 
[Administrator] Administration shall update and arrange for the 
publication of clearly defined routes for navigating through a 
complex terminal airspace area and to and from an airport 
located in such an area, if the [Administrator] Administration 
decides that publication of the routes would promote safety in 
air navigation. The routes shall be developed in consultation 
with pilots and other users of affected airports and shall be 
for the optional use of pilots operating under visual flight 
rules.
  (b) Indemnification.--The Government shall make an agreement 
to indemnify any person that publishes a map or chart for use 
in aeronautics from any part of a claim arising out of the 
depiction by the person on the map or chart of a defective or 
deficient flight procedure or airway if the flight procedure or 
airway was--
          (1) prescribed by the [Administrator] Administration;
          (2) depicted accurately on the map or chart; and
          (3) not obviously defective or deficient.

Sec. 44722. Aircraft operations in winter conditions

  The [Administrator of the] Federal Aviation Administration 
shall prescribe regulations requiring procedures to improve 
safety of aircraft operations during winter conditions. In 
deciding on the procedures to be required, the [Administrator] 
Administration shall consider at least aircraft and air traffic 
control modifications, the availability of different types of 
deicing fluids (considering their efficacy and environmental 
limitations), the types of deicing equipment available, and the 
feasibility and desirability of establishing timeframes within 
which deicing must occur under certain types of inclement 
weather.

Sec. 44723. Annual report

  Not later than January 1 of each year, the [Secretary of 
Transportation] Federal Aviation Board shall submit to Congress 
a comprehensive report on the safety enforcement activities of 
the Federal Aviation Administration during the fiscal year 
ending the prior September 30th. The report shall include--
          (1) * * *
          * * * * * * *

                         CHAPTER 449--SECURITY

          * * * * * * *

               SUBCHAPTER II--ADMINISTRATION AND PERSONNEL

44931.  Director of Intelligence and Security.
[44932.  Assistant Administrator for Civil Aviation Security.]
44932.  Civil aviation security.
     * * * * * * *

                       SUBCHAPTER I--REQUIREMENTS

Sec. 44901. Screening passengers and property

  (a) General Requirements.--The [Administrator of the] Federal 
Aviation Administration shall prescribe regulations requiring 
screening of all passengers and property that will be carried 
in a cabin of an aircraft in air transportation or intrastate 
air transportation. The screening must take place before 
boarding and be carried out by a weapon-detecting facility or 
procedure used or operated by an employee or agent of an air 
carrier, intrastate air carrier, or foreign air carrier.
  (b) Amending Regulations.--Notwithstanding subsection (a) of 
this section, the [Administrator] Administration may amend a 
regulation prescribed under subsection (a) to require screening 
only to ensure security against criminal violence and aircraft 
piracy in air transportation and intrastate air transportation.
  (c) Exemptions and Advising Congress on Regulations.--The 
[Administrator] Administration--
          (1) may exempt from this section air transportation 
        operations, except scheduled passenger operations of an 
        air carrier providing air transportation under a 
        certificate issued under section 41102 of this title or 
        a permit issued under section 41302 of this title; and
          (2) shall advise Congress of a regulation to be 
        prescribed under this section at least 30 days before 
        the effective date of the regulation, unless the 
        [Administrator] Administration decides an emergency 
        exists requiring the regulation to become effective in 
        fewer than 30 days and notifies Congress of that 
        decision.

Sec. 44902. Refusal to transport passengers and property

  (a) Mandatory Refusal.--The [Administrator of the] Federal 
Aviation Administration shall prescribe regulations requiring 
an air carrier, intrastate air carrier, or foreign air carrier 
to refuse to transport--
          (1) a passenger who does not consent to a search 
        under section 44901(a) of this title establishing 
        whether the passenger is carrying unlawfully a 
        dangerous weapon, explosive, or other destructive 
        substance; or
          (2) property of a passenger who does not consent to a 
        search of the property establishing whether the 
        property unlawfully contains a dangerous weapon, 
        explosive, or other destructive substance.
  (b) Permissive Refusal.--Subject to regulations of the 
[Administrator] Administration, an air carrier, intrastate air 
carrier, or foreign air carrier may refuse to transport a 
passenger or property the carrier decides is, or might be, 
inimical to safety.
  (c) Agreeing to Consent to Search.--An agreement to carry 
passengers or property in air transportation or intrastate air 
transportation by an air carrier, intrastate air carrier, or 
foreign air carrier is deemed to include an agreement that the 
passenger or property will not be carried if consent to search 
the passenger or property for a purpose referred to in this 
section is not given.

Sec. 44903. Air transportation security

  (a) Definition.--In this section, ``law enforcement 
personnel'' means individuals--
          (1) authorized to carry and use firearms;
          (2) vested with the degree of the police power of 
        arrest the [Administrator of the] Federal Aviation 
        Administration considers necessary to carry out this 
        section; and
          (3) identifiable by appropriate indicia of authority.
  (b) Protection Against Violence and Piracy.--The 
[Administrator] Administration shall prescribe regulations to 
protect passengers and property on an aircraft operating in air 
transportation or intrastate air transportation against an act 
of criminal violence or aircraft piracy. When prescribing a 
regulation under this subsection, the [Administrator] 
Administration shall--
          (1) consult with the Secretary of Transportation, the 
        Attorney General, the heads of other departments, 
        agencies, and instrumentalities of the United States 
        Government, and State and local authorities;
          (2) consider whether a proposed regulation is 
        consistent with--
                  (A) protecting passengers; and
                  (B) the public interest in promoting air 
                transportation and intrastate air 
                transportation;
          (3) to the maximum extent practicable, require a 
        uniform procedure for searching and detaining 
        passengers and property to ensure--
                  (A) their safety; and
                  (B) courteous and efficient treatment by an 
                air carrier, an agent or employee of an air 
                carrier, and Government, State, and local law 
                enforcement personnel carrying out this 
                section; and
          (4) consider the extent to which a proposed 
        regulation will carry out this section.
  (c) Security Programs.--(1) The [Administrator] 
Administration shall prescribe regulations under subsection (b) 
of this section that require each operator of an airport 
regularly serving an air carrier holding a certificate issued 
by the [Secretary of Transportation] Federal Aviation 
Administration to establish an air transportation security 
program that provides a law enforcement presence and capability 
at each of those airports that is adequate to ensure the safety 
of passengers. The regulations shall authorize the operator to 
use the services of qualified State, local, and private law 
enforcement personnel. When the [Administrator] Administration 
decides, after being notified by an operator in the form the 
[Administrator] Administration prescribes, that not enough 
qualified State, local, and private law enforcement personnel 
are available to carry out subsection (b), the [Administrator] 
Administration may authorize the operator to use, on a 
reimbursable basis, personnel employed by the [Administrator] 
Administration, or by another department, agency, or 
instrumentality of the Government with the consent of the head 
of the department, agency, or instrumentality, to supplement 
State, local, and private law enforcement personnel. When 
deciding whether additional personnel are needed, the 
[Administrator] Administration shall consider the number of 
passengers boarded at the airport, the extent of anticipated 
risk of criminal violence or aircraft piracy at the airport or 
to the air carrier aircraft operations at the airport, and the 
availability of qualified State or local law enforcement 
personnel at the airport.
  (2)(A) The [Administrator] Administration may approve a 
security program of an airport operator, or an amendment in an 
existing program, that incorporates a security program of an 
airport tenant (except an air carrier separately complying with 
part 108 or 129 of title 14, Code of Federal Regulations) 
having access to a secured area of the airport, if the program 
or amendment incorporates--
          (i) the measures the tenant will use, within the 
        tenant's leased areas or areas designated for the 
        tenant's exclusive use under an agreement with the 
        airport operator, to carry out the security 
        requirements imposed by the [Administrator] 
        Administration on the airport operator under the access 
        control system requirements of section 107.14 of title 
        14, Code of Federal Regulations, or under other 
        requirements of part 107 of title 14; and
          (ii) the methods the airport operator will use to 
        monitor and audit the tenant's compliance with the 
        security requirements and provides that the tenant will 
        be required to pay monetary penalties to the airport 
        operator if the tenant fails to carry out a security 
        requirement under a contractual provision or 
        requirement imposed by the airport operator.
  (B) If the [Administrator] Administration approves a program 
or amendment described in subparagraph (A) of this paragraph, 
the airport operator may not be found to be in violation of a 
requirement of this subsection or subsection (b) of this 
section when the airport operator demonstrates that the tenant 
or an employee, permittee, or invitee of the tenant is 
responsible for the violation and that the airport operator has 
complied with all measures in its security program for securing 
compliance with its security program by the tenant.
  (d) Authorizing Individuals To Carry Firearms and Make 
Arrests.--With the approval of the Attorney General and the 
Secretary of State, the [Secretary of Transportation] Federal 
Aviation Administration may authorize an individual who carries 
out air transportation security duties--
          (1) to carry firearms; and
          (2) to make arrests without warrant for an offense 
        against the United States committed in the presence of 
        the individual or for a felony under the laws of the 
        United States, if the individual reasonably believes 
        the individual to be arrested has committed or is 
        committing a felony.
  (e) Exclusive Responsibility Over Passenger Safety.--The 
[Administrator] Administration has the exclusive responsibility 
to direct law enforcement activity related to the safety of 
passengers on an aircraft involved in an offense under section 
46502 of this title from the moment all external doors of the 
aircraft are closed following boarding until those doors are 
opened to allow passengers to leave the aircraft. When 
requested by the [Administrator] Administration, other 
departments, agencies, and instrumentalities of the Government 
shall provide assistance necessary to carry out this 
subsection.

Sec. 44904. Domestic air transportation system security

  (a) Assessing Threats.--The [Administrator of the] Federal 
Aviation Administration and the Director of the Federal Bureau 
of Investigation jointly shall assess current and potential 
threats to the domestic air transportation system. The 
assessment shall include consideration of the extent to which 
there are individuals with the capability and intent to carry 
out terrorist or related unlawful acts against that system and 
the ways in which those individuals might carry out those acts. 
The [Administrator] Administration and the Director jointly 
shall decide on and carry out the most effective method for 
continuous analysis and monitoring of security threats to that 
system.
  (b) Assessing Security.--In coordination with the Director, 
the [Administrator] Administration shall carry out periodic 
threat and vulnerability assessments on security at each 
airport that is part of the domestic air transportation system. 
Each assessment shall include consideration of--
          (1) the adequacy of security procedures related to 
        the handling and transportation of checked baggage and 
        cargo;
          (2) space requirements for security personnel and 
        equipment;
          (3) separation of screened and unscreened passengers, 
        baggage, and cargo;
          (4) separation of the controlled and uncontrolled 
        areas of airport facilities; and
          (5) coordination of the activities of security 
        personnel of the Administration, the United States 
        Customs Service, the Immigration and Naturalization 
        Service, and air carriers, and of other law enforcement 
        personnel.
  (c) Improving Security.--The [Administrator] Administration 
shall take necessary actions to improve domestic air 
transportation security by correcting any deficiencies in that 
security discovered in the assessments, analyses, and 
monitoring carried out under this section.

Sec. 44905. Information about threats to civil aviation

  (a) Providing Information.--Under guidelines the [Secretary 
of Transportation] Federal Aviation Administration prescribes, 
an air carrier, airport operator, ticket agent, or individual 
employed by an air carrier, airport operator, or ticket agent, 
receiving information (except a communication directed by the 
United States Government) about a threat to civil aviation 
shall provide the information promptly to the [Secretary] 
Administration.
  (b) Flight Cancellation.--If a decision is made that a 
particular threat cannot be addressed in a way adequate to 
ensure, to the extent feasible, the safety of passengers and 
crew of a particular flight or series of flights, the 
[Administrator of the] Federal Aviation Administration shall 
cancel the flight or series of flights.
  (c) Guidelines on Public Notice.--(1) * * *
  (2) The guidelines shall provide for consideration of--
          (A) the specificity of the threat;
          (B) the credibility of intelligence information 
        related to the threat;
          (C) the ability to counter the threat effectively;
          (D) the protection of intelligence information 
        sources and methods;
          (E) cancellation, by an air carrier or the 
        [Administrator] Administration, of a flight or series 
        of flights instead of public notice;
          (F) the ability of passengers and crew to take steps 
        to reduce the risk to their safety after receiving 
        public notice of a threat; and
          (G) other factors the [Administrator] Administration 
        considers appropriate.
  (d) Guidelines on Notice to Crews.--The [Administrator] 
Administration shall develop guidelines for ensuring that 
notice in appropriate cases of threats to the security of an 
air carrier flight is provided to the flight crew and cabin 
crew of that flight.
  (e) Limitation on Notice to Selective Travelers.--Notice of a 
threat to civil aviation may be provided to selective potential 
travelers only if the threat applies only to those travelers.
  (f) Restricting Access to Information.--In cooperation with 
the departments, agencies, and instrumentalities of the 
Government that collect, receive, and analyze intelligence 
information related to aviation security, the [Administrator] 
Administration shall develop procedures to minimize the number 
of individuals who have access to information about threats. 
However, a restriction on access to that information may be 
imposed only if the restriction does not diminish the ability 
of the Government to carry out its duties and powers related to 
aviation security effectively, including providing notice to 
the public and flight and cabin crews under this section.
  (g) Distribution of Guidelines.--The guidelines developed 
under this section shall be distributed for use by appropriate 
officials of the [Department of Transportation] Federal 
Aviation Administration, the Department of State, the 
Department of Justice, and air carriers.

Sec. 44906. Foreign air carrier security programs

  The [Administrator of the] Federal Aviation Administration 
shall continue in effect the requirement of section 129.25 of 
title 14, Code of Federal Regulations, that a foreign air 
carrier must adopt and use a security program approved by the 
[Administrator] Administration. The [Administrator] 
Administration may approve a security program of a foreign air 
carrier under section 129.25 only if the [Administrator] 
Administration decides the security program provides passengers 
of the foreign air carrier a level of protection similar to the 
level those passengers would receive under the security 
programs of air carriers serving the same airport. The 
[Administrator] Administration shall require a foreign air 
carrier to use procedures equivalent to those required of air 
carriers serving the same airport if the [Administrator] 
Administration decides that the procedures are necessary to 
provide a level of protection similar to that provided 
passengers of the air carriers serving the same airport. The 
[Administrator] Administration shall prescribe regulations to 
carry out this section.

Sec. 44907. Security standards at foreign airports

  (a) Assessment.--(1) At intervals the [Secretary of 
Transportation] Federal Aviation Administration considers 
necessary, the [Secretary] Administration shall assess the 
effectiveness of the security measures maintained at--
          (A) a foreign airport--
                  (i) served by an air carrier;
                  (ii) from which a foreign air carrier serves 
                the United States; or
                  (iii) that poses a high risk of introducing 
                danger to international air travel; and
          (B) other foreign airports the [Secretary] 
        Administration considers appropriate.
  (2) The [Secretary of Transportation] Federal Aviation 
Administration shall conduct an assessment under paragraph (1) 
of this subsection--
          (A) in consultation with appropriate aeronautic 
        authorities of the government of a foreign country 
        concerned and each air carrier serving the foreign 
        airport for which the [Secretary] Administration is 
        conducting the assessment;
          (B) to establish the extent to which a foreign 
        airport effectively maintains and carries out security 
        measures; and
          (C) by using a standard that will result in an 
        analysis of the security measures at the airport based 
        at least on the standards and appropriate recommended 
        practices contained in Annex 17 to the Convention on 
        International Civil Aviation in effect on the date of 
        the assessment.
  (3) Each report to Congress required under section 44938(b) 
of this title shall contain a summary of the assessments 
conducted under this subsection.
  (b) Consultation.--In carrying out subsection (a) of this 
section, the [Secretary of Transportation] Federal Aviation 
Administration shall consult with the Secretary of State--
          (1) on the terrorist threat that exists in each 
        country; and
          (2) to establish which foreign airports are not under 
        the de facto control of the government of the foreign 
        country in which they are located and pose a high risk 
        of introducing danger to international air travel.
  (c) Notifying Foreign Authorities.--When the [Secretary of 
Transportation] Federal Aviation Administration, after 
conducting an assessment under subsection (a) of this section, 
decides that an airport does not maintain and carry out 
effective security measures, the [Secretary of Transportation] 
Federal Aviation Administration, after advising the Secretary 
of State, shall notify the appropriate authorities of the 
government of the foreign country of the decision and recommend 
the steps necessary to bring the security measures in use at 
the airport up to the standard used by the [Secretary of 
Transportation] Federal Aviation Administration in making the 
assessment.
  (d) Actions When Airports Not Maintaining and Carrying Out 
Effective Security Measures.--(1) When the [Secretary of 
Transportation] Federal Aviation Administration decides under 
this section that an airport does not maintain and carry out 
effective security measures--
          (A) the [Secretary of Transportation] Federal 
        Aviation Administration shall--
                  (i) publish the identity of the airport in 
                the Federal Register;
                  (ii) have the identity of the airport posted 
                and displayed prominently at all United States 
                airports at which scheduled air carrier 
                operations are provided regularly; and
                  (iii) notify the news media of the identity 
                of the airport;
          (B) each air carrier and foreign air carrier 
        providing transportation between the United States and 
        the airport shall provide written notice of the 
        decision, on or with the ticket, to each passenger 
        buying a ticket for transportation between the United 
        States and the airport;
          (C) notwithstanding section 40105(b) of this title, 
        the Secretary of Transportation or Federal Aviation 
        Administration, after consulting with the appropriate 
        aeronautic authorities of the foreign country concerned 
        and each air carrier serving the airport and with the 
        approval of the Secretary of State, may withhold, 
        revoke, or prescribe conditions on the operating 
        authority of an air carrier or foreign air carrier that 
        uses that airport to provide foreign air 
        transportation; and
          (D) the President may prohibit an air carrier or 
        foreign air carrier from providing transportation 
        between the United States and any other foreign airport 
        that is served by aircraft flying to or from the 
        airport with respect to which a decision is made under 
        this section.
      (2)(A) Paragraph (1) of this subsection becomes 
effective--
          (i) 90 days after the government of a foreign country 
        is notified under subsection (c) of this section if the 
        [Secretary of Transportation] Federal Aviation 
        Administration finds that the government has not 
        brought the security measures at the airport up to the 
        standard the [Secretary] Administration used in making 
        an assessment under subsection (a) of this section; or
          (ii) immediately on the decision of the [Secretary of 
        Transportation] Federal Aviation Administration under 
        subsection (c) of this section if the [Secretary of 
        Transportation] Federal Aviation Administration 
        decides, after consulting with the Secretary of State, 
        that a condition exists that threatens the safety or 
        security of passengers, aircraft, or crew traveling to 
        or from the airport.
  (B) The [Secretary of Transportation] Federal Aviation 
Administration immediately shall notify the Secretary of State 
of a decision under subparagraph (A)(ii) of this paragraph so 
that the Secretary of State may issue a travel advisory 
required under section 44908(a) of this title.
  (3) The Secretary of Transportation or Federal Aviation 
Administration promptly shall submit to Congress a report (and 
classified annex if necessary) on action taken under paragraph 
(1) or (2) of this subsection, including information on 
attempts made to obtain the cooperation of the government of a 
foreign country in meeting the standard the Secretary or 
Administration used in assessing the airport under subsection 
(a) of this section.
  (4) An action required under paragraph (1) (A) and (B) of 
this subsection is no longer required only if the [Secretary of 
Transportation] Federal Aviation Administration, in 
consultation with the Secretary of State, decides that 
effective security measures are maintained and carried out at 
the airport. The [Secretary of Transportation] Federal Aviation 
Administration shall notify Congress when the action is no 
longer required to be taken.
  (e) Suspensions.--Notwithstanding sections 40105(b) and 
40106(b) of this title, the Secretary of Transportation or 
Federal Aviation Administration, with the approval of the 
Secretary of State and without notice or a hearing, shall 
suspend the right of an air carrier or foreign air carrier to 
provide foreign air transportation, and the right of a person 
to operate aircraft in foreign air commerce, to or from a 
foreign airport when the Secretary of Transportation or Federal 
Aviation Administration decides that--
          (1) a condition exists that threatens the safety or 
        security of passengers, aircraft, or crew traveling to 
        or from that airport; and
          (2) the public interest requires an immediate 
        suspension of transportation between the United States 
        and that airport.
  (f) Condition of Carrier Authority.--This section is a 
condition to authority the Secretary of Transportation or 
Federal Aviation Administration grants under this part to an 
air carrier or foreign air carrier.

Sec. 44908. Travel advisory and suspension of foreign assistance

  (a) Travel Advisories.--On being notified by the [Secretary 
of Transportation] Federal Aviation Administration that the 
[Secretary of Transportation] Federal Aviation Administration 
has decided under section 44907(d)(2)(A)(ii) of this title that 
a condition exists that threatens the safety or security of 
passengers, aircraft, or crew traveling to or from a foreign 
airport that the [Secretary of Transportation] Federal Aviation 
Administration has decided under section 44907 of this title 
does not maintain and carry out effective security measures, 
the Secretary of State--
          (1) immediately shall issue a travel advisory for 
        that airport;
          (2) shall publish the advisory in the Federal 
        Register; and
          (3) shall publicize the advisory widely.
  (b) Suspending Assistance.--The President shall suspend 
assistance provided under the Foreign Assistance Act of 1961 
(22 U.S.C. 2151 et seq.) or the Arms Export Control Act (22 
U.S.C. 2751 et seq.) to a country in which is located an 
airport with respect to which section 44907(d)(1) of this title 
becomes effective if the Secretary of State decides the country 
is a high terrorist threat country. The President may waive 
this subsection if the President decides, and reports to 
Congress, that the waiver is required because of national 
security interests or a humanitarian emergency.
  (c) Actions No Longer Required.--An action required under 
this section is no longer required only if the [Secretary of 
Transportation] Federal Aviation Administration has made a 
decision as provided under section 44907(d)(4) of this title. 
The [Secretary] Administration shall notify Congress when the 
action is no longer required to be taken.

Sec. 44909. Passenger manifests

  (a) Air Carrier Requirements.--(1) Not later than March 16, 
1991, the [Secretary of Transportation] Federal Aviation 
Administration shall require each air carrier to provide a 
passenger manifest for a flight to an appropriate 
representative of the Secretary of State--
          (A) not later than one hour after that carrier is 
        notified of an aviation disaster outside the United 
        States involving that flight; or
          (B) if it is not technologically feasible or 
        reasonable to comply with clause (A) of this paragraph, 
        then as expeditiously as possible, but not later than 3 
        hours after the carrier is so notified.
  (2) The passenger manifest shall include the following 
information:
          (A) the full name of each passenger.
          (B) the passport number of each passenger, if 
        required for travel.
          (C) the name and telephone number of a contact for 
        each passenger.
  (3) In carrying out this subsection, the [Secretary of 
Transportation] Federal Aviation Administration shall consider 
the necessity and feasibility of requiring air carriers to 
collect passenger manifest information as a condition for 
passengers boarding a flight of the carrier.
  (b) Foreign Air Carrier Requirements.--The [Secretary of 
Transportation] Federal Aviation Administration shall consider 
imposing a requirement on foreign air carriers comparable to 
that imposed on air carriers under subsection (a) (1) and (2) 
of this section.

Sec. 44911. Intelligence

  (a) * * *
  (b) Policies and Procedures on Report Availability.--The head 
of each unit in the intelligence community shall prescribe 
policies and procedures to ensure that intelligence reports 
about international terrorism are made available, as 
appropriate, to the heads of other units in the intelligence 
community, the Secretary of Transportation, and the 
[Administrator of the] Federal Aviation Administration.
          * * * * * * *
  (e) Written Working Agreements.--The heads of units in the 
intelligence community, the Secretary, and the [Administrator] 
Administration shall review and, as appropriate, revise written 
working agreements between the intelligence community and the 
[Administrator] Administration.

Sec. 44912. Research and development

  (a) Program Requirement.--(1) The [Administrator of the] 
Federal Aviation Administration shall establish and carry out a 
program to accelerate and expand the research, development, and 
implementation of technologies and procedures to counteract 
terrorist acts against civil aviation. The program shall 
provide for developing and having in place, not later than 
November 16, 1993, new equipment and procedures necessary to 
meet the technological challenges presented by terrorism. The 
program shall include research on, and development of, 
technological improvements and ways to enhance human 
performance.
  (2) In designing and carrying out the program established 
under this subsection, the [Administrator] Administration 
shall--
          (A) consult and coordinate activities with other 
        departments, agencies, and instrumentalities of the 
        United States Government doing similar research;
          (B) identify departments, agencies, and 
        instrumentalities that would benefit from that 
        research; and
          (C) seek cost-sharing agreements with those 
        departments, agencies, and instrumentalities.
  (3) In carrying out the program established under this 
subsection, the [Administrator] Administration shall review and 
consider the annual reports the Secretary of Transportation 
submits to Congress on transportation security and 
intelligence.
  (4) The [Administrator] Administration may--
          (A) make grants to institutions of higher learning 
        and other appropriate research facilities with 
        demonstrated ability to carry out research described in 
        paragraph (1) of this subsection, and fix the amounts 
        and terms of the grants; and
          (B) make cooperative agreements with governmental 
        authorities the [Administrator] Administration decides 
        are appropriate.
  (b) Review of Threats.--(1) The [Administrator] 
Administration shall complete an intensive review of threats to 
civil aviation, with particular focus on--
          (A) * * *
          * * * * * * *
  (2) The [Administrator] Administration shall use the results 
of the review under this subsection to develop the focus and 
priorities of the program established under subsection (a) of 
this section.
  (c) Scientific Advisory Panel.--The [Administrator] 
Administration shall establish a scientific advisory panel, as 
a subcommittee of the Research, Engineering and Development 
Advisory Committee, to review, comment on, advise on the 
progress of, and recommend modifications in, the program 
established under subsection (a) of this section, including the 
need for long-range research programs to detect and prevent 
catastrophic damage to commercial aircraft by the next 
generation of terrorist weapons. The panel shall consist of 
individuals with scientific and technical expertise in--
          (1) the development and testing of effective 
        explosive detection systems;
          (2) aircraft structure and experimentation to decide 
        on the type and minimum weights of explosives that an 
        effective technology must be capable of detecting;
          (3) technologies involved in minimizing airframe 
        damage to aircraft from explosives; and
          (4) other scientific and technical areas the 
        [Administrator] Administration considers appropriate.

Sec. 44913. Explosive detection

  (a) Deployment and Purchase of Equipment.--(1) A deployment 
or purchase of explosive detection equipment under section 
108.7(b)(8) or 108.20 of title 14, Code of Federal Regulations, 
or similar regulation is required only if the [Administrator of 
the] Federal Aviation Administration certifies that the 
equipment alone, or as part of an integrated system, can detect 
under realistic air carrier operating conditions the amounts, 
configurations, and types of explosive material that would 
likely be used to cause catastrophic damage to commercial 
aircraft. The [Administrator] Administration shall base the 
certification on the results of tests conducted under protocols 
developed in consultation with expert scientists outside of the 
Administration. Those tests shall be completed not later than 
April 16, 1992.
  (2) Before completion of the tests described in paragraph (1) 
of this subsection, but not later than April 16, 1992, the 
[Administrator] Administration may require deployment of 
explosive detection equipment described in paragraph (1) if the 
[Administrator] Administration decides that deployment will 
enhance aviation security significantly. In making that 
decision, the [Administrator] Administration shall consider 
factors such as the ability of the equipment alone, or as part 
of an integrated system, to detect under realistic air carrier 
operating conditions the amounts, configurations, and types of 
explosive material that would likely be used to cause 
catastrophic damage to commercial aircraft. The [Administrator] 
Administration shall notify the Committee on Commerce, Science, 
and Transportation of the Senate and the Committee on Public 
Works and Transportation of the House of Representatives of a 
deployment decision made under this paragraph.
  (3) This subsection does not prohibit the [Administrator] 
Administration from purchasing or deploying explosive detection 
equipment described in paragraph (1) of this subsection.
  (b) Grants.--The [Secretary of Transportation] Federal 
Aviation Administration may provide grants to continue the 
Explosive Detection K-9 Team Training Program to detect 
explosives at airports and on aircraft.

Sec. 44914. Airport construction guidelines

  In consultation with air carriers, airport authorities, and 
others the [Administrator of the] Federal Aviation 
Administration considers appropriate, the [Administrator] 
Administration shall develop guidelines for airport design and 
construction to allow for maximum security enhancement. In 
developing the guidelines, the [Administrator] Administration 
shall consider the results of the assessment carried out under 
section 44904(a) of this title.

Sec. 44915. Exemptions

  The [Administrator of the] Federal Aviation Administration 
may exempt from sections 44901, 44903 (a)-(c) and (e), 44906, 
44935, and 44936 of this title airports in Alaska served only 
by air carriers that--
          (1) hold certificates issued under section 41102 of 
        this title;
          (2) operate aircraft with certificates for a maximum 
        gross takeoff weight of less than 12,500 pounds; and
          (3) board passengers, or load property intended to be 
        carried in an aircraft cabin, that will be screened 
        under section 44901 of this title at another airport in 
        Alaska before the passengers board, or the property is 
        loaded on, an aircraft for a place outside Alaska.

              SUBCHAPTER II--ADMINISTRATION AND PERSONNEL

          * * * * * * *

[Sec. 44932. Assistant Administrator for Civil Aviation Security

  [(a) Organization.--There is an Assistant Administrator for 
Civil Aviation Security. The Assistant Administrator reports 
directly to the Administrator of the Federal Aviation 
Administration and is subject to the authority of the 
Administrator.]

Sec. 44932. Civil aviation security

  [(b)] (a) Duties and Powers.--The [Assistant Administrator] 
officer designated by the Chief Executive Officer of the 
Federal Aviation Administration shall--
          (1) on a day-to-day basis, manage and provide 
        operational guidance to the field security resources of 
        the Administration, including Federal Security Managers 
        as provided by section 44933 of this title;
          (2) enforce security-related requirements;
          (3) identify the research and development 
        requirements of security-related activities;
          (4) inspect security systems;
          (5) report information to the Director of 
        Intelligence and Security that may be necessary to 
        allow the Director to carry out assigned duties and 
        powers;
          (6) assess threats to civil aviation; and
          (7) carry out other duties and powers the 
        [Administrator] Administration considers appropriate.
  [(c)] (b) Review and Development of Ways To Strengthen 
Security.--The [Assistant Administrator] Administration shall 
review and, as necessary, develop ways to strengthen air 
transportation security, including ways--
          (1) to strengthen controls over checked baggage in 
        air transportation, including ways to ensure baggage 
        reconciliation and inspection of items in passenger 
        baggage that could potentially contain explosive 
        devices;
          (2) to strengthen control over individuals having 
        access to aircraft;
          (3) to improve testing of security systems;
          (4) to ensure the use of the best available x-ray 
        equipment for air transportation security purposes; and
          (5) to strengthen preflight screening of passengers.

Sec. 44933. Federal Security Managers

  (a) Establishment, Designation, and Stationing.--The 
[Administrator of the] Federal Aviation Administration shall 
establish the position of Federal Security Manager at each 
airport in the United States at which the [Administrator] 
Administration decides a Manager is necessary for air 
transportation security. The [Administrator] Administration 
shall designate individuals as Managers for, and station those 
Managers at, those airports. The [Administrator] Administration 
may designate a current field employee of the Administration as 
a Manager. A Manager reports directly to the [Assistant 
Administrator for Civil Aviation Security] officer designated 
by the Chief Executive Officer of the Administration. The 
[Administrator] Administration shall station an individual as 
Manager at each airport in the United States that the 
[Secretary of Transportation] Federal Aviation Administration 
designates as a category X airport.
  (b) Duties and Powers.--The Manager at each airport shall--
          (1) * * *
          * * * * * * *
          (4) serve as the on-site coordinator of the 
        [Administrator's] Administration's response to 
        terrorist incidents and threats at the airport;
          (5) coordinate the day-to-day Government aviation 
        security activities at the airport;
          (6) coordinate efforts related to aviation security 
        with local law enforcement; and
          (7) coordinate activities with other Managers.
  (c) Limitation.--A Civil Aviation Security Field Officer may 
not be assigned security duties and powers at an airport having 
a Manager.

Sec. 44934. Foreign Security Liaison Officers

  (a) Establishment, Designation, and Stationing.--The 
[Administrator of the] Federal Aviation Administration shall 
establish the position of Foreign Security Liaison Officer for 
each airport outside the United States at which the 
[Administrator] Administration decides an Officer is necessary 
for air transportation security. In coordination with the 
Secretary of State, the [Administrator] Administration shall 
designate an Officer for each of those airports. In 
coordination with the Secretary, the [Administrator] 
Administration shall designate an Officer for each of those 
airports where extraordinary security measures are in place. 
The Secretary shall give high priority to stationing those 
Officers.
  (b) Duties and Powers.--An Officer reports directly to the 
[Assistant Administrator for Civil Aviation Security] officer 
designated by the Chief Executive Officer of the 
Administration. The Officer at each airport shall--
          (1) serve as the liaison of the [Assistant 
        Administrator] Administration to foreign security 
        authorities (including governments of foreign countries 
        and foreign airport authorities) in carrying out United 
        States Government security requirements at that 
        airport; and
          (2) to the extent practicable, carry out duties and 
        powers referred to in section 44933(b) of this title.
  (c) Coordination of Activities.--The activities of each 
Officer shall be coordinated with the chief of the diplomatic 
mission of the United States to which the Officer is assigned. 
Activities of an Officer under this section shall be consistent 
with the duties and powers of the Secretary and the chief of 
mission to a foreign country under section 103 of the Omnibus 
Diplomatic Security and Antiterrorism Act of 1986 (22 U.S.C. 
4802) and section 207 of the Foreign Service Act of 1980 (22 
U.S.C. 3927).

Sec. 44935. Employment standards and training

  (a) Employment Standards.--The [Administrator of the] Federal 
Aviation Administration shall prescribe standards for the 
employment and continued employment of, and contracting for, 
air carrier personnel and, as appropriate, airport security 
personnel. The standards shall include--
          (1) minimum training requirements for new employees;
          (2) retraining requirements;
          (3) minimum staffing levels;
          (4) minimum language skills; and
          (5) minimum education levels for employees, when 
        appropriate.
  (b) Review and Recommendations.--In coordination with air 
carriers, airport operators, and other interested persons, the 
[Administrator] Administration shall review issues related to 
human performance in the aviation security system to maximize 
that performance. When the review is completed, the 
[Administrator] Administration shall recommend guidelines and 
prescribe appropriate changes in existing procedures to improve 
that performance.
  (c) Security Program Training, Standards, and 
Qualifications.--(1) The [Administrator] Administration--
          (A) may train individuals employed to carry out a 
        security program under section 44903(c) of this title; 
        and
          (B) shall prescribe uniform training standards and 
        uniform minimum qualifications for individuals eligible 
        for that training.
  (2) The [Administrator] Administration may authorize 
reimbursement for travel, transportation, and subsistence 
expenses for security training of non-United States Government 
domestic and foreign individuals whose services will contribute 
significantly to carrying out civil aviation security programs. 
To the extent practicable, air travel reimbursed under this 
paragraph shall be on air carriers.
  (d) Education and Training Standards for Security 
Coordinators, Supervisory Personnel, and Pilots.--(1) The 
[Administrator] Administration shall prescribe standards for 
educating and training--
          (A) ground security coordinators;
          (B) security supervisory personnel; and
          (C) airline pilots as in-flight security 
        coordinators.
  (2) The standards shall include initial training, retraining, 
and continuing education requirements and methods. Those 
requirements and methods shall be used annually to measure the 
performance of ground security coordinators and security 
supervisory personnel.

Sec. 44936. Employment investigations and restrictions

  (a) Employment Investigation Requirement.--(1) The 
[Administrator of the] Federal Aviation Administration shall 
require by regulation that an employment investigation, 
including a criminal history record check, shall be conducted, 
as the [Administrator] Administration decides is necessary to 
ensure air transportation security, of each individual employed 
in, or applying for, a position in which the individual has 
unescorted access, or may permit other individuals to have 
unescorted access, to--
          (A) aircraft of an air carrier or foreign air 
        carrier; or
          (B) a secured area of an airport in the United States 
        the [Administrator] Administration designates that 
        serves an air carrier or foreign air carrier.
  (2) An air carrier, foreign air carrier, or airport operator 
that employs, or authorizes or makes a contract for the 
services of, an individual in a position described in paragraph 
(1) of this subsection shall ensure that the investigation the 
[Administrator] Administration requires is conducted.
  (b) Prohibited Employment.--(1) * * *
  (2) The [Administrator] Administration may specify other 
factors that are sufficient to prohibit the employment of an 
individual in a position described in subsection (a)(1) of this 
section.
  (3) An air carrier, foreign air carrier, or airport operator 
may employ, or authorize or contract for the services of, an 
individual in a position described in subsection (a)(1) of this 
section without carrying out the investigation required under 
this section, if the [Administrator] Administration approves a 
plan to employ the individual that provides alternate security 
arrangements.
  (c) Fingerprinting and Record Check Information.--(1) If the 
[Administrator] Administration requires an identification and 
criminal history record check, to be conducted by the Attorney 
General, as part of an investigation under this section, the 
[Administrator] Administration shall designate an individual to 
obtain fingerprints and submit those fingerprints to the 
Attorney General. The Attorney General may make the results of 
a check available to an individual the [Administrator] 
Administration designates. Before designating an individual to 
obtain and submit fingerprints or receive results of a check, 
the [Administrator] Administration shall consult with the 
Attorney General.
  (2) The [Administrator] Administration shall prescribe 
regulations on--
          (A) procedures for taking fingerprints; and
          (B) requirements for using information received from 
        the Attorney General under paragraph (1) of this 
        subsection--
                  (i) to limit the dissemination of the 
                information; and
                  (ii) to ensure that the information is used 
                only to carry out this section.
  (3) If an identification and criminal history record check is 
conducted as part of an investigation of an individual under 
this section, the individual--
          (A) shall receive a copy of any record received from 
        the Attorney General; and
          (B) may complete and correct the information 
        contained in the check before a final employment 
        decision is made based on the check.
  (d) Fees and Charges.--The [Administrator] Administration and 
the Attorney General shall establish reasonable fees and 
charges to pay expenses incurred in carrying out this section. 
The employer of the individual being investigated shall pay the 
costs of a record check of the individual. Money collected 
under this section shall be credited to the account in the 
Treasury from which the expenses were incurred and are 
available to the [Administrator] Administration and the 
Attorney General for those expenses.
  (e) When Investigation or Record Check Not Required.--This 
section does not require an investigation or record check when 
the investigation or record check is prohibited by a law of a 
foreign country.

Sec. 44937. Prohibition on transferring duties and powers

  Except as specifically provided by law, the [Administrator of 
the] Federal Aviation Administration may not transfer a duty or 
power under section 44903(a), (b), (c), or (e), 44906, 44912, 
44935, 44936, or 44938(b)(3) of this title to another 
department, agency, or instrumentality of the United States 
Government.

Sec. 44938. Reports

  (a) Transportation Security.--Not later than March 31 of each 
year, the Secretary of Transportation shall submit to Congress 
a report on transportation security with recommendations the 
Secretary considers appropriate. The report shall be prepared 
in conjunction with the annual report the [Administrator of 
the] Federal Aviation Administration submits under subsection 
(b) of this section, but may not duplicate the information 
submitted under subsection (b) or section 44907(a)(3) of this 
title. The Secretary may submit the report in classified and 
unclassified parts. The report shall include--
          (1) * * *
          * * * * * * *
          (9) an assessment of financial and staffing 
        requirements, and attainment of existing staffing 
        goals, for carrying out duties and powers of the 
        [Administrator] Administration related to security; and
          (10) appropriate legislative and regulatory 
        recommendations.
  (b) Screening and Foreign Air Carrier and Airport Security.--
The [Administrator] Administration shall submit annually to 
Congress a report--
          (1) on the effectiveness of procedures under section 
        44901 of this title;
          (2) that includes a summary of the assessments 
        conducted under section 44907(a)(1) and (2) of this 
        title; and
          (3) that includes an assessment of the steps being 
        taken, and the progress being made, in ensuring 
        compliance with section 44906 of this title for each 
        foreign air carrier security program at airports 
        outside the United States--
                  (A) at which the [Administrator] 
                Administration decides that Foreign Security 
                Liaison Officers are necessary for air 
                transportation security; and
                  (B) for which extraordinary security measures 
                are in place.
  (c) Domestic Air Transportation System Security.--The 
[Administrator] Administration shall submit to Congress an 
annual report for each of the calendar years 1991 and 1992 on 
the progress being made, and the problems occurring, in 
carrying out section 44904 of this title. The report shall 
include recommendations for improving domestic air 
transportation security.

         CHAPTER 451--ALCOHOL AND CONTROLLED SUBSTANCES TESTING

          * * * * * * *

Sec. 45101. Definition

  In this chapter, ``controlled substance'' means any substance 
under section 102 of the Comprehensive Drug Abuse Prevention 
and Control Act of 1970 (21 U.S.C. 802) specified by the 
[Administrator of the] Federal Aviation Administration.

Sec. 45102. Alcohol and controlled substances testing programs

  (a) Program for Employees of Air Carriers and Foreign Air 
Carriers.--(1) In the interest of aviation safety, the 
[Administrator of the] Federal Aviation Administration shall 
prescribe regulations not later than October 28, 1992, that 
establish a program requiring air carriers and foreign air 
carriers to conduct preemployment, reasonable suspicion, 
random, and post-accident testing of airmen, crewmembers, 
airport security screening contract personnel, and other air 
carrier employees responsible for safety-sensitive functions 
(as decided by the [Administrator] Administration) for the use 
of alcohol or a controlled substance in violation of law or a 
United States Government regulation.
  (2) When the [Administrator] Administration considers it 
appropriate in the interest of safety, the [Administrator] 
Administration may prescribe regulations for conducting 
periodic recurring testing of airmen, crewmembers, airport 
security screening contract personnel, and other air carrier 
employees responsible for safety-sensitive functions for the 
use of alcohol or a controlled substance in violation of law or 
a Government regulation.
  (b) Program for Employees of the Federal Aviation 
Administration.--(1) The [Administrator] Administration shall 
establish a program of preemployment, reasonable suspicion, 
random, and post-accident testing for the use of alcohol or a 
controlled substance in violation of law or a Government 
regulation for employees of the Administration whose duties 
include responsibility for safety-sensitive functions.
  (2) When the [Administrator] Administration considers it 
appropriate in the interest of safety, the [Administrator] 
Administration may prescribe regulations for conducting 
periodic recurring testing of employees of the Administration 
responsible for safety-sensitive functions for use of alcohol 
or a controlled substance in violation of law or a Government 
regulation.
  (c) Sanctions.--In prescribing regulations under the programs 
required by this section, the [Administrator] Administration 
shall require, as the [Administrator] Administration considers 
appropriate, the suspension or revocation of any certificate 
issued to an individual referred to in this section, or the 
disqualification or dismissal of the individual, under this 
chapter when a test conducted and confirmed under this chapter 
indicates the individual has used alcohol or a controlled 
substance in violation of law or a Government regulation.

Sec. 45103. Prohibited service

  (a) Use of Alcohol or a Controlled Substance.--An individual 
may not use alcohol or a controlled substance after October 28, 
1991, in violation of law or a United States Government 
regulation and serve as an airman, crewmember, airport security 
screening contract employee, air carrier employee responsible 
for safety-sensitive functions (as decided by the 
[Administrator of the] Federal Aviation Administration), or 
employee of the Administration with responsibility for safety-
sensitive functions.
  (b) Rehabilitation Required To Resume Service.--
Notwithstanding subsection (a) of this section, an individual 
found to have used alcohol or a controlled substance after 
October 28, 1991, in violation of law or a Government 
regulation may serve as an airman, crewmember, airport security 
screening contract employee, air carrier employee responsible 
for safety-sensitive functions (as decided by the 
[Administrator] Administration), or employee of the 
Administration with responsibility for safety-sensitive 
functions only if the individual completes a rehabilitation 
program described in section 45105 of this title.
  (c) Performance of Prior Duties Prohibited.--An individual 
who served as an airman, crewmember, airport security screening 
contract employee, air carrier employee responsible for safety-
sensitive functions (as decided by the [Administrator] 
Administration), or employee of the Administration with 
responsibility for safety-sensitive functions and who was found 
by the [Administrator] Administration to have used alcohol or a 
controlled substance after October 28, 1991, in violation of 
law or a Government regulation may not carry out the duties 
related to air transportation that the individual carried out 
before the finding of the [Administrator] Administration if the 
individual--
          (1) used the alcohol or controlled substance when on 
        duty;
          (2) began or completed a rehabilitation program 
        described in section 45105 of this title before using 
        the alcohol or controlled substance; or
          (3) refuses to begin or complete a rehabilitation 
        program described in section 45105 of this title after 
        a finding by the [Administrator] Administration under 
        this section.

Sec. 45104. Testing and laboratory requirements

  In carrying out section 45102 of this title, the 
[Administrator of the] Federal Aviation Administration shall 
develop requirements that--
          (1) * * *
          * * * * * * *

Sec. 45105. Rehabilitation

  (a) Program for Employees of Air Carriers and Foreign Air 
Carriers.--The [Administrator of the] Federal Aviation 
Administration shall prescribe regulations establishing 
requirements for rehabilitation programs that at least provide 
for the identification and opportunity for treatment of 
employees of air carriers and foreign air carriers referred to 
in section 45102(a)(1) of this title who need assistance in 
resolving problems with the use of alcohol or a controlled 
substance in violation of law or a United States Government 
regulation. Each air carrier and foreign air carrier is 
encouraged to make such a program available to all its 
employees in addition to the employees referred to in section 
45102(a)(1). The [Administrator] Administration shall decide on 
the circumstances under which employees shall be required to 
participate in a program. This subsection does not prevent an 
air carrier or foreign air carrier from establishing a program 
under this subsection in cooperation with another air carrier 
or foreign air carrier.
  (b) Program for Employees of the Federal Aviation 
Administration.--The [Administrator] Administration shall 
establish and maintain a rehabilitation program that at least 
provides for the identification and opportunity for treatment 
of employees of the Administration whose duties include 
responsibility for safety-sensitive functions who need 
assistance in resolving problems with the use of alcohol or a 
controlled substance.

Sec. 45106. Relationship to other laws, regulations, standards, and 
                    orders

  (a) Effect on State and Local Government Laws, Regulations, 
Standards, or Orders.--A State or local government may not 
prescribe, issue, or continue in effect a law, regulation, 
standard, or order that is inconsistent with regulations 
prescribed under this chapter. However, a regulation prescribed 
under this chapter does not preempt a State criminal law that 
imposes sanctions for reckless conduct leading to loss of life, 
injury, or damage to property.
  (b) International Obligations and Foreign Laws.--(1) In 
prescribing regulations under this chapter, the [Administrator 
of the] Federal Aviation Administration--
          (A) shall establish only requirements applicable to 
        foreign air carriers that are consistent with 
        international obligations of the United States; and
          (B) shall consider applicable laws and regulations of 
        foreign countries.
  (2) The Secretaries of State and Transportation jointly shall 
request the governments of foreign countries that are members 
of the International Civil Aviation Organization to strengthen 
and enforce existing standards to prohibit crewmembers in 
international civil aviation from using alcohol or a controlled 
substance in violation of law or a United States Government 
regulation.
  (c) Other Regulations Allowed.--This section does not prevent 
the [Administrator] Administration from continuing in effect, 
amending, or further supplementing a regulation prescribed 
before October 28, 1991, governing the use of alcohol or a 
controlled substance by airmen, crewmembers, airport security 
screening contract employees, air carrier employees responsible 
for safety-sensitive functions (as decided by the 
[Administrator] Administration), or employees of the 
Administration with responsibility for safety-sensitive 
functions.

                           CHAPTER 453--FEES

          * * * * * * *

Sec. 45301. Authority to impose fees

  (a) General Authority.--The Secretary of Transportation and 
the Federal Aviation Administration, as the case may be, may 
impose a fee for an approval, test, authorization, certificate, 
permit, registration, transfer, or rating related to aviation 
that has not been approved by Congress only when the fee--
          (1)(A) was in effect on January 1, 1973; and
          (B) is not more than the fee in effect on January 1, 
        1973, adjusted in proportion to changes in the Consumer 
        Price Index of All Urban Consumers published by the 
        Secretary of Labor between January 1, 1973, and the 
        date the fee is imposed; or
          (2) is imposed under section 45302 of this title.
  (b) Nonapplication.--Subsection (a) does not apply to a fee 
for a test, authorization, certificate, permit, or rating 
related to an airman or repair station administered or issued 
outside the United States.
  (c) Recovery of Cost of Foreign Aviation Services.--
          (1) Establishment of fees.--The [Administrator] 
        Administration may establish and collect fees for 
        providing or carrying out the following aviation 
        services outside the United States: any test, 
        authorization, certificate, permit, rating, evaluation, 
        approval, inspection, review.
          (2) Foreign repair station certification and 
        inspection fees.--The [Administrator] Administration 
        must establish and collect under this subsection fees 
        for certification and inspection of repair stations 
        outside of the United States.
          (3) Level of fees.--Fees shall be established under 
        this subsection as necessary to recover the additional 
        cost of providing or carrying out such services outside 
        the United States, as compared to the cost of providing 
        or carrying out such services within the United States; 
        except that the [Administrator] Administration may for 
        such services as the [Administrator] Administration 
        designates (and shall for certification and inspection 
        of repair stations outside the United States) establish 
        fees at a level necessary to recover the full cost of 
        providing such services.
          (4) Effect on other authority.--The provisions of 
        this subsection do not limit the [Administrator's] 
        Administration's authority to establish and collect 
        fees under subsection (a).
          (5) Crediting of preestablished fees.--Fees described 
        in paragraph (1) that were not established before the 
        date of the enactment of this subsection may be 
        credited in accordance with section 45302(d).

Sec. 45302. Fees involving aircraft not providing air transportation

  (a) Application.--This section applies only to aircraft not 
used to provide air transportation.
  (b) General Authority and Maximum Fees.--The [Administrator 
of the] Federal Aviation Administration may impose fees to pay 
for the costs of issuing airman certificates to pilots and 
certificates of registration of aircraft and processing forms 
for major repairs and alterations of fuel tanks and fuel 
systems of aircraft. The following fees may not be more than 
the amounts specified:
          (1) $12 for issuing an airman's certificate to a 
        pilot.
          (2) $25 for registering an aircraft after the 
        transfer of ownership.
          (3) $15 for renewing an aircraft registration.
          (4) $7.50 for processing a form for a major repair or 
        alteration of a fuel tank or fuel system of an 
        aircraft.
  (c) Adjustments.--The [Administrator] Administration shall 
adjust the maximum fees established by subsection (b) of this 
section for changes in the Consumer Price Index of All Urban 
Consumers published by the Secretary of Labor.
  (d) Credit to Account and Availability.--Money collected from 
fees imposed under this section shall be credited to the 
account in the Treasury from which the [Administrator] 
Administration incurs expenses in carrying out chapter 441 and 
sections 44701-44716 of this title (except sections 44701(c), 
44703(f)(2), and 44713(d)(2)). The money is available to the 
[Administrator] Administration to pay expenses for which the 
fees are collected.
  (e) Effective Date.--A fee may not be imposed under this 
section before the date on which the regulations prescribed 
under sections 44111(d), 44703(f)(2), and 44713(d)(2) of this 
title take effect.

Sec. 45303. Maximum fees for private person services

  The [Administrator of the] Federal Aviation Administration 
may establish maximum fees that private persons may charge for 
services performed under a delegation to the person under 
section 44702(d) of this title.

                 SUBPART IV--ENFORCEMENT AND PENALTIES

              CHAPTER 461--INVESTIGATIONS AND PROCEEDINGS

Sec.
46101.  Complaints and investigations.
     * * * * * * *
46106.  Enforcement by the Secretary of Transportation and 
          [Administrator of the] Federal Aviation Administration.
     * * * * * * *

Sec. 46101. Complaints and investigations

  (a) General.--(1) A person may file a complaint in writing 
with the Secretary of Transportation [(or the Administrator of] 
(or the Federal Aviation Administration with respect to 
aviation safety duties and powers designated to be carried out 
by the [Administrator)] Administration) about a person 
violating this part or a requirement prescribed under this 
part. Except as provided in subsection (b) of this section, the 
Secretary or [Administrator] Administration shall investigate 
the complaint if a reasonable ground appears to the Secretary 
or [Administrator] Administration for the investigation.
  (2) On the initiative of the Secretary of Transportation or 
the [Administrator] Administration, as appropriate, the 
Secretary or [Administrator] Administration may conduct an 
investigation, if a reasonable ground appears to the Secretary 
or [Administrator] Administration for the investigation, 
about--
          (A) a person violating this part or a requirement 
        prescribed under this part; or
          (B) any question that may arise under this part.
  (3) The Secretary of Transportation or [Administrator] 
Administration may dismiss a complaint without a hearing when 
the Secretary or [Administrator] Administration is of the 
opinion that the complaint does not state facts that warrant an 
investigation or action.
  (4) After notice and an opportunity for a hearing and subject 
to section 40105(b) of this title, the Secretary of 
Transportation or [Administrator] Administration shall issue an 
order to compel compliance with this part if the Secretary or 
[Administrator] Administration finds in an investigation under 
this subsection that a person is violating this part.
  (b) Complaints Against Members of Armed Forces.--The 
Secretary of Transportation or [Administrator] Administration 
shall refer a complaint against a member of the armed forces of 
the United States performing official duties to the Secretary 
of the department concerned for action. Not later than 90 days 
after receiving the complaint, the Secretary of that department 
shall inform the Secretary of Transportation or [Administrator] 
Administration of the action taken on the complaint, including 
any corrective or disciplinary action taken.

Sec. 46102. Proceedings

  (a) Conducting Proceedings.--Subject to subchapter II of 
chapter 5 of title 5, the Secretary of Transportation [(or the 
Administrator of] (or the Federal Aviation Administration with 
respect to aviation safety duties and powers designated to be 
carried out by the [Administrator)] Administration) may conduct 
proceedings in a way conducive to justice and the proper 
dispatch of business.
  (b) Appearance.--A person may appear and be heard before the 
Secretary and the [Administrator] Administration in person or 
by an attorney. The Secretary may appear and participate as an 
interested party in a proceeding the [Administrator] 
Administration conducts under section 40113(a) of this title.
  (c) Recording and Public Access.--Official action taken by 
the Secretary and [Administrator] Administration under this 
part shall be recorded. Proceedings before the Secretary and 
[Administrator] Administration shall be open to the public on 
the request of an interested party unless the Secretary or 
[Administrator] Administration decides that secrecy is required 
because of national defense.
  (d) Conflicts of Interest.--The Secretary, the 
[Administrator] Administration, or an officer or employee of 
the Administration may not participate in a proceeding referred 
to in subsection (a) of this section in which the individual 
has a pecuniary interest.

Sec. 46103. Service of notice, process, and actions

  (a) Designating Agents.--(1) Each air carrier and foreign air 
carrier shall designate an agent on whom service of notice and 
process in a proceeding before, and an action of, the Secretary 
of Transportation [(or the Administrator of] (or the Federal 
Aviation Administration with respect to aviation safety duties 
and powers designated to be carried out by the [Administrator)] 
Administration) may be made.
  (2) The designation--
          (A) shall be in writing and filed with the Secretary 
        or [Administrator] Administration; and
          (B) may be changed in the same way as originally 
        made.
  (b) Service.--(1) Service may be made--
          (A) by personal service;
          (B) on a designated agent; or
          (C) by certified or registered mail to the person to 
        be served or the designated agent of the person.
  (2) The date of service made by certified or registered mail 
is the date of mailing.
  (c) Serving Agents.--Service on an agent designated under 
this section shall be made at the office or usual place of 
residence of the agent. If an air carrier or foreign air 
carrier does not have a designated agent, service may be made 
by posting the notice, process, or action in the office of the 
Secretary or [Administrator] Administration.

Sec. 46104. Evidence

  (a) General.--In conducting a hearing or investigation under 
this part, the Secretary of Transportation [(or the 
Administrator of] (or the Federal Aviation Administration with 
respect to aviation safety duties and powers designated to be 
carried out by the [Administrator)] Administration) may--
          (1) subpena witnesses and records related to a matter 
        involved in the hearing or investigation from any place 
        in the United States to the designated place of the 
        hearing or investigation;
          (2) administer oaths;
          (3) examine witnesses; and
          (4) receive evidence at a place in the United States 
        the Secretary or [Administrator] Administration 
        designates.
  (b) Compliance With Subpenas.--If a person disobeys a 
subpena, the Secretary, the [Administrator] Administration, or 
a party to a proceeding before the Secretary or [Administrator] 
Administration may petition a court of the United States to 
enforce the subpena. A judicial proceeding to enforce a subpena 
under this section may be brought in the jurisdiction in which 
the proceeding or investigation is conducted. The court may 
punish a failure to obey an order of the court to comply with 
the subpena as a contempt of court.
  (c) Depositions.--(1) In a proceeding or investigation, the 
Secretary or [Administrator] Administration may order a person 
to give testimony by deposition and to produce records. If a 
person fails to be deposed or to produce records, the order may 
be enforced in the same way a subpena may be enforced under 
subsection (b) of this section.
  (2) A deposition may be taken before an individual designated 
by the Secretary or [Administrator] Administration and having 
the power to administer oaths.
  (3) Before taking a deposition, the party or the attorney of 
the party proposing to take the deposition must give reasonable 
notice in writing to the opposing party or the attorney of 
record of that party. The notice shall state the name of the 
witness and the time and place of taking the deposition.
  (4) The testimony of a person deposed under this subsection 
shall be under oath. The person taking the deposition shall 
prepare, or cause to be prepared, a transcript of the testimony 
taken. The transcript shall be subscribed by the deponent. Each 
deposition shall be filed promptly with the Secretary or 
[Administrator] Administration.
  (5) If the laws of a foreign country allow, the testimony of 
a witness in that country may be taken by deposition--
          (A) by a consular officer or an individual 
        commissioned by the Secretary or [Administrator] 
        Administration or agreed on by the parties by written 
        stipulation filed with the Secretary or [Administrator] 
        Administration; or
          (B) under letters rogatory issued by a court of 
        competent jurisdiction at the request of the Secretary 
        or [Administrator] Administration.
  (d) Witness Fees and Mileage and Certain Foreign Country 
Expenses.--A witness summoned before the Secretary or 
[Administrator] Administration or whose deposition is taken 
under this section and the individual taking the deposition are 
each entitled to the same fee and mileage that the witness and 
individual would have been paid for those services in a court 
of the United States. Under regulations of the Secretary or 
[Administrator] Administration, the Secretary or 
[Administrator] Administration shall pay the necessary expenses 
incident to executing, in another country, a commission or 
letter rogatory issued at the initiative of the Secretary or 
[Administrator] Administration.
  (e) Designating Employees To Conduct Hearings.--When 
designated by the Secretary or [Administrator] Administration, 
an employee appointed under section 3105 of title 5 may conduct 
a hearing, subpena witnesses, administer oaths, examine 
witnesses, and receive evidence at a place in the United States 
the Secretary or [Administrator] Administration designates. On 
request of a party, the Secretary or [Administrator] 
Administration shall hear or receive argument.

Sec. 46105. Regulations and orders

  (a) Effectiveness of Orders.--Except as provided in this 
part, a regulation prescribed or order issued by the Secretary 
of Transportation (or the [Administrator of the] Federal 
Aviation Administration with respect to aviation safety duties 
and powers designated to be carried out by the [Administrator)] 
Administration) takes effect within a reasonable time 
prescribed by the Secretary or [Administrator] Administration. 
The regulation or order remains in effect under its own terms 
or until superseded. Except as provided in this part, the 
Secretary or [Administrator] Administration may amend, modify, 
or suspend an order in the way, and by giving the notice, the 
Secretary or [Administrator] Administration decides.
  (b) Contents and Service of Orders.--An order of the 
Secretary or [Administrator] Administration shall include the 
findings of fact on which the order is based and shall be 
served on the parties to the proceeding and the persons 
affected by the order.
  (c) Emergencies.--When the [Administrator] Administration is 
of the opinion that an emergency exists related to safety in 
air commerce and requires immediate action, the [Administrator] 
Administration, on the initiative of the [Administrator] 
Administration or on complaint, may prescribe regulations and 
issue orders immediately to meet the emergency, with or without 
notice and without regard to this part and subchapter II of 
chapter 5 of title 5. The [Administrator] Administration shall 
begin a proceeding immediately about an emergency under this 
subsection and give preference, when practicable, to the 
proceeding.

Sec. 46106. Enforcement by the Secretary of Transportation and 
                    [Administrator of the] Federal Aviation 
                    Administration

  The Secretary of Transportation (or the [Administrator of 
the] Federal Aviation Administration with respect to aviation 
safety duties and powers designated to be carried out by the 
[Administrator)] Administration) may bring a civil action 
against a person in a district court of the United States to 
enforce this part or a requirement or regulation prescribed, or 
an order or any term of a certificate or permit issued, under 
this part. The action may be brought in the judicial district 
in which the person does business or the violation occurred.

Sec. 46107. Enforcement by the Attorney General

  (a) Civil Actions To Enforce Section 40106(b).--The Attorney 
General may bring a civil action in a district court of the 
United States against a person to enforce section 40106(b) of 
this title. The action may be brought in the judicial district 
in which the person does business or the violation occurred.
  (b) Civil Actions To Enforce This Part.--(1) On request of 
the Secretary of Transportation (or the [Administrator of the] 
Federal Aviation Administration with respect to aviation safety 
duties and powers designated to be carried out by the 
[Administrator)] Administration), the Attorney General may 
bring a civil action in an appropriate court--
          (A) to enforce this part or a requirement or 
        regulation prescribed, or an order or any term of a 
        certificate or permit issued, under this part; and
          (B) to prosecute a person violating this part or a 
        requirement or regulation prescribed, or an order or 
        any term of a certificate or permit issued, under this 
        part.
  (2) The costs and expenses of a civil action shall be paid 
out of the appropriations for the expenses of the courts of the 
United States.
  (c) Participation of Secretary or [Administrator] 
Administration.--On request of the Attorney General, the 
Secretary or [Administrator] Administration, as appropriate, 
may participate in a civil action under this part.

Sec. 46108. Enforcement of certificate requirements by interested 
                    persons

  An interested person may bring a civil action in a district 
court of the United States against a person to enforce section 
41101(a)(1) of this title. The action may be brought in the 
judicial district in which the defendant does business or the 
violation occurred.

Sec. 46109. Joinder and intervention

  A person interested in or affected by a matter under 
consideration in a proceeding before the Secretary of 
Transportation or the Federal Aviation Administration or civil 
action to enforce this part or a requirement or regulation 
prescribed, or an order or any term of a certificate or permit 
issued, under this part may be joined as a party or permitted 
to intervene in the proceeding or civil action.

Sec. 46110. Judicial review

  (a) Filing and Venue.--Except for an order related to a 
foreign air carrier subject to disapproval by the President 
under section 41307 or 41509(f) of this title, a person 
disclosing a substantial interest in an order issued by the 
Secretary of Transportation (or the [Administrator of the] 
Federal Aviation Administration with respect to aviation safety 
duties and powers designated to be carried out by the 
[Administrator)] Administration) under this part may apply for 
review of the order by filing a petition for review in the 
United States Court of Appeals for the District of Columbia 
Circuit or in the court of appeals of the United States for the 
circuit in which the person resides or has its principal place 
of business. The petition must be filed not later than 60 days 
after the order is issued. The court may allow the petition to 
be filed after the 60th day only if there are reasonable 
grounds for not filing by the 60th day.
  (b) Judicial Procedures.--When a petition is filed under 
subsection (a) of this section, the clerk of the court 
immediately shall send a copy of the petition to the Secretary 
or [Administrator] Administration, as appropriate. The 
Secretary or [Administrator] Administration shall file with the 
court a record of any proceeding in which the order was issued, 
as provided in section 2112 of title 28.
  (c) Authority of Court.--When the petition is sent to the 
Secretary or [Administrator] Administration, the court has 
exclusive jurisdiction to affirm, amend, modify, or set aside 
any part of the order and may order the Secretary or 
[Administrator] Administration to conduct further proceedings. 
After reasonable notice to the Secretary or [Administrator] 
Administration, the court may grant interim relief by staying 
the order or taking other appropriate action when good cause 
for its action exists. Findings of fact by the Secretary or 
[Administrator] Administration, if supported by substantial 
evidence, are conclusive.
  (d) Requirement for Prior Objection.--In reviewing an order 
under this section, the court may consider an objection to an 
order of the Secretary or [Administrator] Administration only 
if the objection was made in the proceeding conducted by the 
Secretary or [Administrator] Administration or if there was a 
reasonable ground for not making the objection in the 
proceeding.
  (e) Supreme Court Review.--A decision by a court under this 
section may be reviewed only by the Supreme Court under section 
1254 of title 28.

                         CHAPTER 463--PENALTIES

          * * * * * * *

Sec. 46301. Civil penalties

  (a) * * *
          * * * * * * *
  (c) Procedural Requirements.--(1) The Secretary of 
Transportation may impose a civil penalty for the following 
violations only after notice and an opportunity for a hearing:
          (A) * * *
          * * * * * * *
          (D) a violation under subsection (a)(1) of this 
        section related to the transportation by other than air 
        of hazardous material.
          (2) FAA notice and hearing.--The Federal Aviation 
        Administration may impose a civil penalty for 
        violations under subsection (a)(1) of this section 
        related to the transportation by air of hazardous 
        material only after notice and an opportunity for a 
        hearing.
  [(2)] (3) The Secretary or Administration, as appropriate, 
shall give written notice of the finding of a violation and the 
civil penalty under [paragraph (1) of] this subsection.
  (d) Administrative Imposition of Penalties.--(1) * * *
  (2) The [Administrator of the] Federal Aviation 
Administration may impose a civil penalty for a violation of 
chapter 401 (except sections 40103 (a) and (d), 40105, 
40106(b), 40116, and 40117), chapter 441 (except section 
44109), or any of sections 44701 (a) or (b), 44702-44716, 
44901, 44903 (b) or (c), 44905, 44906, 44907(d)(1)(B), 44912-
44915, 44932-44938, 46302, 46303, or 47107(b) (as further 
defined by the [Secretary] Administration under section 
47107(l) and including any assurance made under section 
47107(b)) of this title or a regulation prescribed or order 
issued under any of those provisions. The [Administrator] 
Administration shall give written notice of the finding of a 
violation and the penalty.
  (3) In a civil action to collect a civil penalty imposed by 
the [Administrator] Administration under this subsection, the 
issues of liability and the amount of the penalty may not be 
reexamined.
  (4) Notwithstanding paragraph (2) of this subsection, the 
district courts of the United States have exclusive 
jurisdiction of a civil action involving a penalty the 
[Administrator] Administration initiates if--
          (A) the amount in controversy is more than $50,000;
          (B) the action is in rem or another action in rem 
        based on the same violation has been brought;
          (C) the action involves an aircraft subject to a lien 
        that has been seized by the Government; or
          (D) another action has been brought for an injunction 
        based on the same violation.
  (5)(A) The [Administrator] Administration may issue an order 
imposing a penalty under this subsection against an individual 
acting as a pilot, flight engineer, mechanic, or repairman only 
after advising the individual of the charges or any reason the 
[Administrator] Administration relied on for the proposed 
penalty and providing the individual an opportunity to answer 
the charges and be heard about why the order shall not be 
issued.
  (B) An individual acting as a pilot, flight engineer, 
mechanic, or repairman may appeal an order imposing a penalty 
under this subsection to the National Transportation Safety 
Board. After notice and an opportunity for a hearing on the 
record, the Board shall affirm, modify, or reverse the order. 
The Board may modify a civil penalty imposed to a suspension or 
revocation of a certificate.
  (C) When conducting a hearing under this paragraph, the Board 
is not bound by findings of fact of the [Administrator] 
Administration but is bound by all validly adopted 
interpretations of laws and regulations the [Administrator] 
Administration carries out and of written agency policy 
guidance available to the public related to sanctions to be 
imposed under this section unless the Board finds an 
interpretation is arbitrary, capricious, or otherwise not 
according to law.
  (D) When an individual files an appeal with the Board under 
this paragraph, the order of the [Administrator] Administration 
is stayed.
  (6) An individual substantially affected by an order of the 
Board under paragraph (5) of this subsection, or the 
[Administrator] Administration when the [Administrator] 
Administration decides that an order of the Board under 
paragraph (5) will have a significant adverse impact on 
carrying out this part, may obtain judicial review of the order 
under section 46110 of this title. The [Administrator] 
Administration shall be made a party to the judicial review 
proceedings. Findings of fact of the Board are conclusive if 
supported by substantial evidence.
  (7)(A) The [Administrator] Administration may impose a 
penalty on an individual (except an individual acting as a 
pilot, flight engineer, mechanic, or repairman) only after 
notice and an opportunity for a hearing on the record.
  (B) In an appeal from a decision of an administrative law 
judge as the result of a hearing under subparagraph (A) of this 
paragraph, the [Administrator] Administration shall consider 
only whether--
          (i) each finding of fact is supported by a 
        preponderance of reliable, probative, and substantial 
        evidence;
          (ii) each conclusion of law is made according to 
        applicable law, precedent, and public policy; and
          (iii) the judge committed a prejudicial error that 
        supports the appeal.
  (C) Except for good cause, a civil action involving a penalty 
under this paragraph may not be initiated later than 2 years 
after the violation occurs.
  (D) In the case of a violation of section 47107(b) of this 
title or any assurance made under such section--
          (i) a civil penalty shall not be assessed against an 
        individual;
          (ii) a civil penalty may be compromised as provided 
        under subsection (f); and
          (iii) judicial review of any order assessing a civil 
        penalty may be obtained only pursuant to section 46110 
        of this title.
  (8) The maximum civil penalty the [Administrator] 
Administration or Board may impose under this subsection is 
$50,000.
  (9) This subsection applies only to a violation occurring 
after August 25, 1992.
  (e) Penalty Considerations.--In determining the amount of a 
civil penalty under subsection (a)(3) of this section related 
to transportation of hazardous material, the [Secretary] 
Administration shall consider--
          (1) the nature, circumstances, extent, and gravity of 
        the violation;
          (2) with respect to the violator, the degree of 
        culpability, any history of prior violations, the 
        ability to pay, and any effect on the ability to 
        continue doing business; and
          (3) other matters that justice requires.
  (f) Compromise and Setoff.--(1)(A) The Secretary or 
Administration, as the case may be, may compromise the amount 
of a civil penalty imposed for violating--
          (i) chapter 401 (except sections 40103 (a) and (d), 
        40105, 40116, and 40117), chapter 441 (except section 
        44109), or any of sections 44701 (a) or (b), 44702-
        44716, 44901, 44903 (b) or (c), 44905, 44906, 
        44907(d)(1)(B), 44912-44915, or 44932-44938 of this 
        title; or
          (ii) a regulation prescribed or order issued under 
        any provision to which clause (i) of this subparagraph 
        applies.
  (B) The Postal Service may compromise the amount of a civil 
penalty imposed under subsection (a)(1)(D) of this section.
  (2) The Government may deduct the amount of a civil penalty 
imposed or compromised under this subsection from amounts it 
owes the person liable for the penalty.
  (g) Judicial Review.--An order of the Secretary and an order 
of the Administration imposing a civil penalty may be reviewed 
judicially only under section 46110 of this title.
  (h) Nonapplication.--(1) * * *
  (2) The appropriate military authority is responsible for 
taking necessary disciplinary action and submitting to the 
Secretary [(or the Administrator with respect to aviation 
safety duties and powers designated to be carried out by the 
Administrator)] or Administration, as appropriate, a timely 
report on action taken.

Sec. 46302. False information

  (a) * * *
  (b) Compromise and Setoff.--(1) The [Secretary of 
Transportation] Federal Aviation Administration may compromise 
the amount of a civil penalty imposed under subsection (a) of 
this section.
  (2) The Government may deduct the amount of a civil penalty 
imposed or compromised under this section from amounts it owes 
the person liable for the penalty.

Sec. 46303. Carrying a weapon

  (a) Civil Penalty.--An individual who, when on, or attempting 
to board, an aircraft in, or intended for operation in, air 
transportation or intrastate air transportation, has on or 
about the individual or the property of the individual a 
concealed dangerous weapon that is or would be accessible to 
the individual in flight is liable to the United States 
Government for a civil penalty of not more than $10,000 for 
each violation.
  (b) Compromise and Setoff.--(1) The [Secretary of 
Transportation] Federal Aviation Administration may compromise 
the amount of a civil penalty imposed under subsection (a) of 
this section.
  (2) The Government may deduct the amount of a civil penalty 
imposed or compromised under this section from amounts it owes 
the individual liable for the penalty.
  (c) Nonapplication.--This section does not apply to--
          (1) a law enforcement officer of a State or political 
        subdivision of a State, or an officer or employee of 
        the Government, authorized to carry arms in an official 
        capacity; or
          (2) another individual the [Administrator of the] 
        Federal Aviation Administration by regulation 
        authorizes to carry arms in an official capacity.

Sec. 46304. Liens on aircraft

  (a) Aircraft Subject to Liens.--When an aircraft is involved 
in a violation referred to in section 46301(a)(1)(A)-(C), (2), 
or (3) of this title and the violation is by the owner of, or 
individual commanding, the aircraft, the aircraft is subject to 
a lien for the civil penalty.
  (b) Seizure.--An aircraft subject to a lien under this 
section may be seized summarily and placed in the custody of a 
person authorized to take custody of it under regulations of 
the Secretary of Transportation (or the [Administrator of the] 
Federal Aviation Administration with respect to aviation safety 
duties and powers designated to be carried out by the 
[Administrator] Administration). A report on the seizure shall 
be submitted to the Attorney General. The Attorney General 
promptly shall bring a civil action in rem to enforce the lien 
or notify the Secretary or [Administrator] Administration that 
the action will not be brought.
  (c) Release.--An aircraft seized under subsection (b) of this 
section shall be released from custody when--
          (1) the civil penalty is paid;
          (2) a compromise amount agreed on is paid;
          (3) the aircraft is seized under a civil action in 
        rem to enforce the lien;
          (4) the Attorney General gives notice that a civil 
        action will not be brought under subsection (b) of this 
        section; or
          (5) a bond (in an amount and with a surety the 
        Secretary or [Administrator] Administration 
        prescribes), conditioned on payment of the penalty or 
        compromise, is deposited with the Secretary or 
        [Administrator] Administration.
          * * * * * * *

Sec. 46306. Registration violations involving aircraft not providing 
                    air transportation

  (a) Application.--This section applies only to aircraft not 
used to provide air transportation.
  (b) General Criminal Penalty.--Except as provided by 
subsection (c) of this section, a person shall be fined under 
title 18, imprisoned for not more than 3 years, or both, if the 
person--
          (1) * * *
          * * * * * * *
          (9) operates an aircraft with a fuel tank or fuel 
        system that has been installed or modified knowing that 
        the tank, system, installation, or modification does 
        not comply with regulations and requirements of the 
        [Administrator of the] Federal Aviation Administration.
          * * * * * * *
  (d) Seizure and Forfeiture.--(1) The Administrator of Drug 
Enforcement or the Commissioner of Customs may seize and 
forfeit under the customs laws an aircraft whose use is related 
to a violation of subsection (b) of this section, or to aid or 
facilitate a violation, regardless of whether a person is 
charged with the violation.
  (2) An aircraft's use is presumed to have been related to a 
violation of, or to aid or facilitate a violation of--
          (A) subsection (b)(1) of this section if the aircraft 
        certificate of registration has been forged or altered;
          (B) subsection (b)(3) of this section if there is an 
        external display of false or misleading registration 
        numbers or country of registration;
          (C) subsection (b)(4) of this section if--
                  (i) the aircraft is registered to a false or 
                fictitious person; or
                  (ii) the application form used to obtain the 
                aircraft certificate of registration contains a 
                material false statement;
          (D) subsection (b)(5) of this section if the aircraft 
        was operated when it was not registered under section 
        44103 of this title; or
          (E) subsection (b)(9) of this section if the aircraft 
        has a fuel tank or fuel system that was installed or 
        altered--
                  (i) in violation of a regulation or 
                requirement of the [Administrator of the] 
                Federal Aviation Administration; or
                  (ii) if a certificate required to be issued 
                for the installation or alteration is not 
                carried on the aircraft.
  (3) The [Administrator of the] Federal Aviation 
Administration, the Administrator of Drug Enforcement, and the 
Commissioner shall agree to a memorandum of understanding to 
establish procedures to carry out this subsection.
  (e) Relationship to State Laws.--This part does not prevent a 
State from establishing a criminal penalty, including providing 
for forfeiture and seizure of aircraft, for a person that--
          (1) knowingly and willfully forges or alters an 
        aircraft certificate of registration;
          (2) knowingly sells, uses, attempts to use, or 
        possesses with the intent to use, a fraudulent aircraft 
        certificate of registration;
          (3) knowingly and willfully displays or causes to be 
        displayed on an aircraft a mark that is false or 
        misleading about the nationality or registration of the 
        aircraft; or
          (4) obtains an aircraft certificate of registration 
        from the [Administrator of the] Federal Aviation 
        Administration by--
                  (A) knowingly and willfully falsifying or 
                concealing a material fact;
                  (B) making a false, fictitious, or fraudulent 
                statement; or
                  (C) making or using a false document knowing 
                it contains a false, fictitious, or fraudulent 
                statement or entry.
          * * * * * * *

Sec. 46308. Interference with air navigation

  A person shall be fined under title 18, imprisoned for not 
more than 5 years, or both, if the person--
          (1) * * *
          (2) after a warning from the [Administrator of the] 
        Federal Aviation Administration, continues to maintain 
        a misleading light or signal; or
          * * * * * * *

Sec. 46311. Unlawful disclosure of information

   (a) Criminal Penalty.--The Secretary of Transportation, the 
[Administrator of the] Federal Aviation Administration with 
respect to aviation safety duties and powers designated to be 
carried out by the [Administrator] Administration, or an 
officer or employee of the Secretary or [Administrator] 
Administration shall be fined under title 18, imprisoned for 
not more than 2 years, or both, if the Secretary, 
[Administrator] Administration, officer, or employee knowingly 
and willfully discloses information that--
          (1) the Secretary, [Administrator] Administration, 
        officer, or employee acquires when inspecting the 
        records of an air carrier; or
          (2) is withheld from public disclosure under section 
        40115 of this title.
  (b) Nonapplication.--Subsection (a) of this section does not 
apply if--
          (1) the officer or employee is directed by the 
        Secretary or [Administrator] Administration to disclose 
        information that the Secretary or [Administrator] 
        Administration had ordered withheld; or
          (2) the Secretary, [Administrator] Administration, 
        officer, or employee is directed by a court of 
        competent jurisdiction to disclose the information.
  (c) Withholding Information From Congress.--This section does 
not authorize the Secretary or [Administrator] Administration 
to withhold information from a committee of Congress authorized 
to have the information.
          * * * * * * *

Sec. 46313. Refusing to appear or produce records

  A person not obeying a subpena or requirement of the 
Secretary of Transportation (or the [Administrator of the] 
Federal Aviation Administration with respect to aviation safety 
duties and powers designated to be carried out by the 
[Administrator] Administration) to appear and testify or 
produce records shall be fined under title 18, imprisoned for 
not more than one year, or both.
          * * * * * * *

Sec. 46315. Lighting violations involving transporting controlled 
                    substances by aircraft not providing air 
                    transportation

  (a) * * *
  (b) Criminal Penalty.--A person shall be fined under title 
18, imprisoned for not more than 5 years, or both, if--
          (1) the person knowingly and willfully operates an 
        aircraft in violation of a regulation or requirement of 
        the [Administrator of the] Federal Aviation 
        Administration related to the display of navigation or 
        anticollision lights;
          * * * * * * *

Sec. 46316. General criminal penalty when specific penalty not provided

  (a) Criminal Penalty.--Except as provided by subsection (b) 
of this section, when another criminal penalty is not provided 
under this chapter, a person that knowingly and willfully 
violates this part, a regulation prescribed or order issued by 
the Secretary of Transportation (or the [Administrator of the] 
Federal Aviation Administration with respect to aviation safety 
duties and powers designated to be carried out by the 
[Administrator] Administration) under this part, or any term of 
a certificate or permit issued under section 41102, 41103, or 
41302 of this title shall be fined under title 18. A separate 
violation occurs for each day the violation continues.
          * * * * * * *

    CHAPTER 465--SPECIAL AIRCRAFT JURISDICTION OF THE UNITED STATES

          * * * * * * *

Sec. 46505. Carrying a weapon or explosive on an aircraft

  (a) * * *
          * * * * * * *
  (d) Nonapplication.--Subsection (b)(1) of this section does 
not apply to--
          (1) a law enforcement officer of a State or political 
        subdivision of a State, or an officer or employee of 
        the United States Government, authorized to carry arms 
        in an official capacity;
          (2) another individual the [Administrator of the] 
        Federal Aviation Administration by regulation 
        authorizes to carry a dangerous weapon in air 
        transportation or intrastate air transportation; or
          * * * * * * *

                 PART B--AIRPORT DEVELOPMENT AND NOISE

                    CHAPTER 471--AIRPORT DEVELOPMENT

          * * * * * * *

                   SUBCHAPTER I--AIRPORT IMPROVEMENT

Sec. 47101. Policies

  (a) * * *
          * * * * * * *
  (e) Adequacy of Navigation Aids and Airport Facilities.--This 
subchapter should be carried out to provide adequate navigation 
aids and airport facilities for places at which scheduled 
commercial air service is provided. The facilities provided may 
include--
          (1) reliever airports; and
          (2) heliports designated by the [Secretary of 
        Transportation] Federal Aviation Administration to 
        relieve congestion at commercial service airports by 
        diverting aircraft passengers from fixed-wing aircraft 
        to helicopter carriers.
          * * * * * * *
  (g) Cooperation.--To carry out the policy of subsection 
(a)(5) of this section, the [Secretary of Transportation] 
Federal Aviation Administration shall cooperate with State and 
local officials in developing airport plans and programs that 
are based on overall transportation needs. The airport plans 
and programs shall be developed in coordination with other 
transportation planning and considering comprehensive long-
range land-use plans and overall social, economic, 
environmental, system performance, and energy conservation 
objectives. The process of developing airport plans and 
programs shall be continuing, cooperative, and comprehensive to 
the degree appropriate to the complexity of the transportation 
problems.
  (h) Consultation.--To carry out the policy of subsection 
(a)(6) of this section, the [Secretary of Transportation] 
Federal Aviation Administration shall consult with the 
Secretary of the Interior and the Administrator of the 
Environmental Protection Agency about any project included in a 
project grant application involving the location of an airport 
or runway, or a major runway extension, that may have a 
significant effect on--
          (1) natural resources, including fish and wildlife;
          (2) natural, scenic, and recreation assets;
          (3) water and air quality; or
          (4) another factor affecting the environment.

Sec. 47102. Definitions

  In this subchapter--
          (1) * * *
          * * * * * * *
          (3) ``airport development'' means the following 
        activities, if undertaken by the sponsor, owner, or 
        operator of a public-use airport:
                  (A) constructing, repairing, or improving a 
                public-use airport, including--
                          (i) removing, lowering, relocating, 
                        marking, and lighting an airport 
                        hazard; and
                          (ii) preparing a plan or 
                        specification, including carrying out a 
                        field investigation.
                  (B) acquiring for, or installing at, a 
                public-use airport--
                          (i) a navigation aid or another aid 
                        (including a precision approach system) 
                        used by aircraft for landing at or 
                        taking off from the airport, including 
                        preparing the site as required by the 
                        acquisition or installation;
                          (ii) safety or security equipment, 
                        including explosive detection devices 
                        and universal access systems, the 
                        [Secretary] Administration requires by 
                        regulation for, or approves as 
                        contributing significantly to, the 
                        safety or security of individuals and 
                        property at the airport;
          * * * * * * *
                  (D) acquiring land for, or constructing, a 
                burn area training structure on or off the 
                airport to provide live fire drill training for 
                aircraft rescue and firefighting personnel 
                required to receive the training under 
                regulations the [Secretary] Administration 
                prescribes, including basic equipment and 
                minimum structures to support the training 
                under standards the Administrator of the 
                Federal Aviation Administration prescribes.
                  (E) relocating after December 31, 1991, an 
                air traffic control tower and any navigational 
                aid (including radar) if the relocation is 
                necessary to carry out a project approved by 
                the [Secretary] Administration under this 
                subchapter.
          * * * * * * *
          (5) ``airport planning'' means planning as defined by 
        regulations the [Secretary] Administration prescribes 
        and includes integrated airport system planning.
          (6) ``amount made available under section 48103 of 
        this title'' means the amount authorized for grants 
        under section 48103 of this title as reduced by any law 
        enacted after September 3, 1982.
          (7) ``commercial service airport'' means a public 
        airport in a State that the [Secretary] Administration 
        determines has at least 2,500 passenger boardings each 
        year and is receiving scheduled passenger aircraft 
        service.
          * * * * * * *
          (9) ``landed weight'' means the weight of aircraft 
        transporting only cargo in intrastate, interstate, and 
        foreign air transportation, as the [Secretary] 
        Administration determines under regulations the 
        [Secretary] Administration prescribes.
          (10) ``passenger boardings''--
                  (A) means revenue passenger boardings on an 
                aircraft in service in air commerce as the 
                [Secretary] Administration determines under 
                regulations the [Secretary] Administration 
                prescribes; and
                  (B) includes passengers who continue on an 
                aircraft in international flight that stops at 
                an airport in the 48 contiguous States, Alaska, 
                or Hawaii for a nontraffic purpose.
          (11) ``primary airport'' means a commercial service 
        airport the [Secretary] Administration determines to 
        have more than 10,000 passenger boardings each year.
          (12) ``project'' means a project, separate projects 
        included in one project grant application, or all 
        projects to be undertaken at an airport in a fiscal 
        year, to achieve airport development or airport 
        planning.
          (13) ``project cost'' means a cost involved in 
        carrying out a project.
          (14) ``project grant'' means a grant of money the 
        [Secretary] Administration makes to a sponsor to carry 
        out at least one project.
          (17) ``public-use airport'' means--
                  (A) a public airport; or
                  (B) a privately-owned airport used or 
                intended to be used for public purposes that 
                is--
                          (i) a reliever airport; or
                          (ii) determined by the [Secretary] 
                        Administration to have at least 2,500 
                        passenger boardings each year and to 
                        receive scheduled passenger aircraft 
                        service.
          (18) ``reliever airport'' means an airport the 
        [Secretary] Administration designates to relieve 
        congestion at a commercial service airport and to 
        provide more general aviation access to the overall 
        community.
          (19) ``sponsor'' means--
                  (A) a public agency that submits to the 
                [Secretary] Administration under this 
                subchapter an application for financial 
                assistance; and
                  (B) a private owner of a public-use airport 
                that submits to the [Secretary] Administration 
                under this subchapter an application for 
                financial assistance for the airport.
          (20) ``State'' means a State of the United States, 
        the District of Columbia, Puerto Rico, the Virgin 
        Islands, American Samoa, the Northern Mariana Islands, 
        the Trust Territory of the Pacific Islands, and Guam.

Sec. 47103. National plan of integrated airport systems

  (a) General Requirements and Considerations.--The [Secretary 
of Transportation] Federal Aviation Administration shall 
maintain the plan for developing public-use airports in the 
United States, named ``the national plan of integrated airport 
systems''. The plan shall include the kind and estimated cost 
of eligible airport development the [Secretary of 
Transportation] Federal Aviation Administration considers 
necessary to provide a safe, efficient, and integrated system 
of public-use airports adequate to anticipate and meet the 
needs of civil aeronautics, to meet the national defense 
requirements of the Secretary of Defense, and to meet 
identified needs of the United States Postal Service. Airport 
development included in the plan may not be limited to meeting 
the needs of any particular classes or categories of public-use 
airports. In maintaining the plan, the [Secretary of 
Transportation] Federal Aviation Administration shall consider 
the needs of each segment of civil aviation and the 
relationship of each airport to--
          (1) the rest of the transportation system in the 
        particular area;
          (2) forecasted technological developments in 
        aeronautics; and
          (3) forecasted developments in other modes of 
        intercity transportation.
  (b) Specific Requirements.--In maintaining the plan, the 
[Secretary of Transportation] Federal Aviation Administration 
shall--
          (1) to the extent possible and as appropriate, 
        consult with departments, agencies, and 
        instrumentalities of the United States Government, with 
        public agencies, and with the aviation community;
          (2) consider tall structures that reduce safety or 
        airport capacity; and
          (3) make every reasonable effort to address the needs 
        of air cargo operations, Short Takeoff and Landing/Very 
        Short Takeoff and Landing aircraft operations, and 
        rotary wing aircraft operations.
  (c) Availability of Domestic Military Airports and Airport 
Facilities.--To the extent possible, the Secretary of Defense 
shall make domestic military airports and airport facilities 
available for civil use. In advising the [Secretary of 
Transportation] Federal Aviation Administration under 
subsection (a) of this section, the Secretary of Defense shall 
indicate the extent to which domestic military airports and 
airport facilities are available for civil use.
  (d) Publication.--The [Secretary of Transportation] Federal 
Aviation Administration shall publish the status of the plan 
every 2 years.

Sec. 47104. Project grant authority

  (a) General Authority.--To maintain a safe and efficient 
nationwide system of public-use airports that meets the present 
and future needs of civil aeronautics, the [Secretary of 
Transportation] Federal Aviation Administration may make 
project grants under this subchapter from the Airport and 
Airway Trust Fund.
  (b) Incurring Obligations.--The [Secretary] Administration 
may incur obligations to make grants from amounts made 
available under section 48103 of this title as soon as the 
amounts are apportioned under section 47114(c) and (d)(2) of 
this title.
  (c) Expiration of Authority.--After September 30, 1996, the 
[Secretary] Administration may not incur obligations under 
subsection (b) of this section, except for obligations of 
amounts--
          (1) remaining available after that date under section 
        47117(b) of this title; or
          (2) recovered by the United States Government from 
        grants made under this chapter if the amounts are 
        obligated only for increases under section 47108(b)(2) 
        and (3) of this title in the maximum amount of 
        obligations of the Government for any other grant made 
        under this title.

Sec. 47105. Project grant applications

  (a) Submission and Consultation.--(1) An application for a 
project grant under this subchapter may be submitted to the 
[Secretary of Transportation] Federal Aviation Administration 
by--
          (A) a sponsor; or
          (B) a State, as the only sponsor, for an airport 
        development project benefitting 1 or more airports in 
        the State or for airport planning for projects for 1 or 
        more airports in the State if--
                  (i) the sponsor of each airport gives written 
                consent that the State be the applicant;
                  (ii) the [Secretary] Administration is 
                satisfied there is administrative merit and 
                aeronautical benefit in the State being the 
                sponsor; and
                  (iii) an acceptable agreement exists that 
                ensures that the State will comply with 
                appropriate grant conditions and other 
                assurances the [Secretary] Administration 
                requires.
  (2) Before deciding to undertake an airport development 
project at an airport under this subchapter, a sponsor shall 
consult with the airport users that will be affected by the 
project.
  (3) This subsection does not authorize a public agency that 
is subject to the laws of a State to apply for a project grant 
in violation of a law of the State.
  (b) Contents and Form.--An application for a project grant 
under this subchapter--
          (1) shall describe the project proposed to be 
        undertaken;
          (2) may propose a project only for a public-use 
        airport included in the current national plan of 
        integrated airport systems;
          (3) may propose airport development only if the 
        development complies with standards the [Secretary] 
        Administration prescribes or approves, including 
        standards for site location, airport layout, site 
        preparation, paving, lighting, and safety of 
        approaches; and
          (4) shall be in the form and contain other 
        information the [Secretary] Administration prescribes.
  (c) State Standards for Airport Development.--The [Secretary] 
Administration may approve standards (except standards for 
safety of approaches) that a State prescribes for airport 
development at nonprimary public-use airports in the State. On 
approval under this subsection, a State's standards apply to 
the nonprimary public-use airports in the State instead of the 
comparable standards prescribed by the [Secretary] 
Administration under subsection (b)(3) of this section. The 
[Secretary] Administration, or the State with the approval of 
the [Secretary] Administration, may revise standards approved 
under this subsection.
  (d) Certification of Compliance.--The [Secretary] 
Administration may require a sponsor to certify that the 
sponsor will comply with this subchapter in carrying out the 
project. The [Secretary] Administration may rescind the 
acceptance of a certification at any time. This subsection does 
not affect an obligation or responsibility of the [Secretary] 
Administration under another law of the United States.
  (e) Preventive Maintenance.--After January 1, 1995, the 
[Secretary] Administration may approve an application under 
this subchapter for the replacement or reconstruction of 
pavement at an airport only if the sponsor has provided such 
assurances or certifications as the [Secretary] Administration 
may determine appropriate that such airport has implemented an 
effective airport pavement maintenance-management program. The 
[Secretary] Administration may require such reports on pavement 
condition and pavement management programs as the [Secretary] 
Administration determines may be useful.
  (f) Notification.--The sponsor of an airport for which an 
amount is apportioned under section 47114(c) of this title 
shall notify the [Secretary] Administration of the fiscal year 
in which the sponsor intends to submit a project grant 
application for the apportioned amount. The notification shall 
be given by the time and contain the information the 
[Secretary] Administration prescribes.

Sec. 47106. Project grant application approval conditioned on 
                    satisfaction of project requirements

  (a) Project Grant Application Approval.--The [Secretary of 
Transportation] Federal Aviation Administration may approve an 
application under this subchapter for a project grant only if 
the [Secretary] Administration is satisfied that--
          (1) the project is consistent with plans (existing at 
        the time the project is approved) of public agencies 
        authorized by the State in which the airport is located 
        to plan for the development of the area surrounding the 
        airport;
          (2) the project will contribute to carrying out this 
        subchapter;
          (3) enough money is available to pay the project 
        costs that will not be paid by the United States 
        Government under this subchapter;
          (4) the project will be completed without 
        unreasonable delay; and
          (5) the sponsor has authority to carry out the 
        project as proposed.
  (b) Airport Development Project Grant Application Approval.--
The [Secretary] Administration may approve an application under 
this subchapter for an airport development project grant for an 
airport only if the [Secretary] Administration is satisfied 
that--
          (1) the sponsor, a public agency, or the Government 
        holds good title to the areas of the airport used or 
        intended to be used for the landing, taking off, or 
        surface maneuvering of aircraft, or that good title 
        will be acquired;
          (2) the interests of the community in or near which 
        the project may be located have been given fair 
        consideration; and
          (3) the application provides touchdown zone and 
        centerline runway lighting, high intensity runway 
        lighting, or land necessary for installing approach 
        light systems that the [Secretary] Administration, 
        considering the category of the airport and the kind 
        and volume of traffic using it, decides is necessary 
        for safe and efficient use of the airport by aircraft.
  (c) Environmental Requirements.--(1) The [Secretary] 
Administration may approve an application under this subchapter 
for an airport development project involving the location of an 
airport or runway or a major runway extension--
          (A) only if the sponsor certifies to the [Secretary] 
        Administration that--
                  (i) an opportunity for a public hearing was 
                given to consider the economic, social, and 
                environmental effects of the location and the 
                location's consistency with the objectives of 
                any planning that the community has carried 
                out; and
                  (ii) the airport management board has voting 
                representation from the communities in which 
                the project is located or has advised the 
                communities that they have the right to 
                petition the [Secretary] Administration about a 
                proposed project;
          (B) only if the chief executive officer of the State 
        in which the project will be located certifies in 
        writing to the [Secretary] Administration that there is 
        reasonable assurance that the project will be located, 
        designed, constructed, and operated in compliance with 
        applicable air and water quality standards, except that 
        the Administrator of the Environmental Protection 
        Agency shall make the certification instead of the 
        chief executive officer if--
                  (i) the State has not approved any applicable 
                State or local standards; and
                  (ii) the Administrator of the Environmental 
                Protection Agency has prescribed applicable 
                standards; and
          (C) if the application is found to have a significant 
        adverse effect on natural resources, including fish and 
        wildlife, natural, scenic, and recreation assets, water 
        and air quality, or another factor affecting the 
        environment, only after finding that no possible and 
        prudent alternative to the project exists and that 
        every reasonable step has been taken to minimize the 
        adverse effect.
  (2) The [Secretary] Federal Aviation Administration may 
approve an application under this subchapter for an airport 
development project that does not involve the location of an 
airport or runway, or a major runway extension, at an existing 
airport without requiring an environmental impact statement 
related to noise for the project if--
          (A) completing the project would allow operations at 
        the airport involving aircraft complying with the noise 
        standards prescribed for ``stage 2'' aircraft in 
        section 36.1 of title 14, Code of Federal Regulations, 
        to replace existing operations involving aircraft that 
        do not comply with those standards; and
          (B) the project meets the other requirements under 
        this subchapter.
  (3) At the [Secretary's] Administration's request, the 
sponsor shall give the [Secretary] Administration a copy of the 
transcript of any hearing held under paragraph (1)(A) of this 
subsection.
  (4)(A) Notice of certification or of refusal to certify under 
paragraph (1)(B) of this subsection shall be provided to the 
[Secretary] Administration not later than 60 days after the 
[Secretary] Administration receives the application.
  (B) The [Secretary] Administration shall condition approval 
of the application on compliance with the applicable standards 
during construction and operation.
  (5) The [Secretary] Administration may make a finding under 
paragraph (1)(C) of this subsection only after completely 
reviewing the matter. The review and finding must be a matter 
of public record.
  (d) Withholding Approval.--(1) The [Secretary] Administration 
may withhold approval of an application under this subchapter 
for amounts apportioned under section 47114 (c) and (e) of this 
title for violating an assurance or requirement of this 
subchapter only if--
          (A) the [Secretary] Administration provides the 
        sponsor an opportunity for a hearing; and
          (B) not later than 180 days after the later of the 
        date of the application or the date the [Secretary] 
        Administration discovers the noncompliance, the 
        [Secretary] Administration finds that a violation has 
        occurred.
  (2) The 180-day period may be extended by--
          (A) agreement between the [Secretary] Administration 
        and the sponsor; or
          (B) the hearing officer if the officer decides an 
        extension is necessary because the sponsor did not 
        follow the schedule the officer established.
  (3) A person adversely affected by an order of the 
[Secretary] Administration withholding approval may obtain 
review of the order by filing a petition in the United States 
Court of Appeals for the District of Columbia Circuit or in the 
court of appeals of the United States for the circuit in which 
the project is located. The action must be brought not later 
than 60 days after the order is served on the petitioner.
  (e) Reports Relating to Construction of Certain New Hub 
Airports.--At least 90 days prior to the approval under this 
subchapter of a project grant application for construction of a 
new hub airport that is expected to have 0.25 percent or more 
of the total annual enplanements in the United States, the 
[Secretary] Administration shall submit to Congress a report 
analyzing the anticipated impact of such proposed new airport 
on--
          (1) the fees charged to air carriers (including 
        landing fees), and other costs that will be incurred by 
        air carriers, for using the proposed airport;
          (2) air transportation that will be provided in the 
        geographic region of the proposed airport; and
          (3) the availability and cost of providing air 
        transportation to rural areas in such geographic 
        region.

Sec. 47107. Project grant application approval conditioned on 
                    assurances about airport operations

  (a) General Written Assurances.--The [Secretary of 
Transportation] Federal Aviation Administration may approve a 
project grant application under this subchapter for an airport 
development project only if the [Secretary] Administration 
receives written assurances, satisfactory to the [Secretary] 
Administration, that--
          (1) * * *
          * * * * * * *
          (8) a proposal to close the airport temporarily for a 
        nonaeronautical purpose must first be approved by the 
        [Secretary] Administration;
          * * * * * * *
          (12) the airport owner or operator will provide, 
        without charge to the Government, property interests of 
        the sponsor in land or water areas or buildings that 
        the [Secretary] Administration decides are desirable 
        for, and that will be used for, constructing at 
        Government expense, facilities for carrying out 
        activities related to air traffic control or 
        navigation;
          (13) the airport owner or operator will maintain a 
        schedule of charges for use of facilities and services 
        at the airport--
                  (A) that will make the airport as self-
                sustaining as possible under the circumstances 
                existing at the airport, including volume of 
                traffic and economy of collection; and
                  (B) without including in the rate base used 
                for the charges the Government's share of costs 
                for any project for which a grant is made under 
                this subchapter or was made under the Federal 
                Airport Act or the Airport and Airway 
                Development Act of 1970;
          (14) the project accounts and records will be kept 
        using a standard system of accounting that the 
        [Secretary] Administration, after consulting with 
        appropriate public agencies, prescribes;
          (15) the airport owner or operator will submit any 
        annual or special airport financial and operations 
        reports to the [Secretary] Administration that the 
        [Secretary] Administration reasonably requests and make 
        such reports available to the public;
          (16) the airport owner or operator will maintain a 
        current layout plan of the airport that meets the 
        following requirements:
                  (A) the plan will be in a form the 
                [Secretary] Administration prescribes;
                  (B) the [Secretary] Administration will 
                approve the plan and any revision or 
                modification before the plan, revision, or 
                modification takes effect;
                  (C) the owner or operator will not make or 
                allow any alteration in the airport or any of 
                its facilities if the alteration does not 
                comply with the plan the [Secretary] 
                Administration approves, and the [Secretary] 
                Administration is of the opinion that the 
                alteration may affect adversely the safety, 
                utility, or efficiency of the airport; and
                  (D) when an alteration in the airport or its 
                facility is made that does not conform to the 
                approved plan and that the [Secretary] 
                Administration decides adversely affects the 
                safety, utility, or efficiency of any property 
                on or off the airport that is owned, leased, or 
                financed by the Government, the owner or 
                operator, if requested by the [Secretary] 
                Administration, will--
                          (i) eliminate the adverse effect in a 
                        way the [Secretary] Administration 
                        approves; or
                          (ii) bear all cost of relocating the 
                        property or its replacement to a site 
                        acceptable to the [Secretary] 
                        Administration and of restoring the 
                        property or its replacement to the 
                        level of safety, utility, efficiency, 
                        and cost of operation that existed 
                        before the alteration was made;
          (17) each contract and subcontract for program 
        management, construction management, planning studies, 
        feasibility studies, architectural services, 
        preliminary engineering, design, engineering, 
        surveying, mapping, and related services will be 
        awarded in the same way that a contract for 
        architectural and engineering services is negotiated 
        under title IX of the Federal Property and 
        Administrative Services Act of 1949 (40 U.S.C. 541 et 
        seq.) or an equivalent qualifications-based requirement 
        prescribed for or by the sponsor;
          (18) the airport and each airport record will be 
        available for inspection by the [Secretary] 
        Administration on reasonable request, and a report of 
        the airport budget will be available to the public at 
        reasonable times and places; and
          (19) the airport owner or operator will submit to the 
        [Secretary] Administration and make available to the 
        public an annual report listing in detail--
                  (A) all amounts paid by the airport to any 
                other unit of government and the purposes for 
                which each such payment was made; and
                  (B) all services and property provided to 
                other units of government and the amount of 
                compensation received for provision of each 
                such service and property.
  (b) Written Assurances on Use of Revenue.--(1) The [Secretary 
of Transportation] Federal Aviation Administration may approve 
a project grant application under this subchapter for an 
airport development project only if the [Secretary] 
Administration receives written assurances, satisfactory to the 
[Secretary] Administration, that local taxes on aviation fuel 
(except taxes in effect on December 30, 1987) and the revenues 
generated by a public airport will be expended for the capital 
or operating costs of--
          (A) the airport;
          (B) the local airport system; or
          (C) other local facilities owned or operated by the 
        airport owner or operator and directly and 
        substantially related to the air transportation of 
        passengers or property.
          * * * * * * *
  (c) Written Assurances on Acquiring Land.--(1) In this 
subsection, land is needed for an airport purpose (except a 
noise compatibility purpose) if--
          (A)(i) the land may be needed for an aeronautical 
        purpose (including runway protection zone) or serves as 
        noise buffer land; and
          (ii) revenue from interim uses of the land 
        contributes to the financial self-sufficiency of the 
        airport; and
          (B) for land purchased with a grant the owner or 
        operator received not later than December 30, 1987, the 
        [Secretary of Transportation] Federal Aviation 
        Administration or the department, agency, or 
        instrumentality of the Government that made the grant 
        was notified by the owner or operator of the use of the 
        land and did not object to the use and the land is 
        still being used for that purpose.
  (2) The [Secretary of Transportation] Federal Aviation 
Administration may approve an application under this subchapter 
for an airport development project grant only if the 
[Secretary] Administration receives written assurances, 
satisfactory to the [Secretary] Administration, that if an 
airport owner or operator has received or will receive a grant 
for acquiring land and--
          (A) if the land was or will be acquired for a noise 
        compatibility purpose--
                  (i) the owner or operator will dispose of the 
                land at fair market value at the earliest 
                practicable time after the land no longer is 
                needed for a noise compatibility purpose;
                  (ii) the disposition will be subject to 
                retaining or reserving an interest in the land 
                necessary to ensure that the land will be used 
                in a way that is compatible with noise levels 
                associated with operating the airport; and
                  (iii) the part of the proceeds from disposing 
                of the land that is proportional to the 
                Government's share of the cost of acquiring the 
                land will be paid to the [Secretary] 
                Administration for deposit in the Airport and 
                Airway Trust Fund established under section 
                9502 of the Internal Revenue Code of 1986 (26 
                U.S.C. 9502) or, as the [Secretary] 
                Administration prescribes, reinvested in an 
                approved noise compatibility project; or
          (B) if the land was or will be acquired for an 
        airport purpose (except a noise compatibility 
        purpose)--
                  (i) the owner or operator, when the land no 
                longer is needed for an airport purpose, will 
                dispose of the land at fair market value or 
                make available to the [Secretary] 
                Administration an amount equal to the 
                Government's proportional share of the fair 
                market value;
                  (ii) the disposition will be subject to 
                retaining or reserving an interest in the land 
                necessary to ensure that the land will be used 
                in a way that is compatible with noise levels 
                associated with operating the airport; and
                  (iii) the part of the proceeds from disposing 
                of the land that is proportional to the 
                Government's share of the cost of acquiring the 
                land will be reinvested, on application to the 
                [Secretary] Administration, in another eligible 
                airport development project the [Secretary] 
                Administration approves under this subchapter 
                or paid to the [Secretary] Administration for 
                deposit in the Fund if another eligible project 
                does not exist.
  (3) Proceeds referred to in paragraphs (2) (A)(iii) and 
(B)(iii) of this subsection and deposited in the Airport and 
Airway Trust Fund are available as provided in subsection (f) 
of this section.
  (d) Assurances of Continuation as Public-Use Airport.--The 
[Secretary of Transportation] Federal Aviation Administration 
may approve an application under this subchapter for an airport 
development project grant for a privately owned public-use 
airport only if the [Secretary] Administration receives 
appropriate assurances that the airport will continue to 
function as a public-use airport during the economic life (that 
must be at least 10 years) of any facility at the airport that 
was developed with Government financial assistance under this 
subchapter.
  (e) Written Assurances of Opportunities for Small Business 
Concerns.--(1) The [Secretary of Transportation] Federal 
Aviation Administration may approve a project grant application 
under this subchapter for an airport development project only 
if the [Secretary] Administration receives written assurances, 
satisfactory to the [Secretary] Administration, that the 
airport owner or operator will take necessary action to ensure, 
to the maximum extent practicable, that at least 10 percent of 
all businesses at the airport selling consumer products or 
providing consumer services to the public are small business 
concerns (as defined by regulations of the [Secretary] 
Administration) owned and controlled by a socially and 
economically disadvantaged individual (as defined in section 
47113(a) of this title).
          * * * * * * *
  (8) Not later than April 29, 1993, the [Secretary of 
Transportation] Federal Aviation Administration shall prescribe 
regulations to carry out this subsection.
  (f) Availability of Amounts.--An amount deposited in the 
Airport and Airway Trust Fund under--
          (1) subsection (c)(2)(A)(iii) of this section is 
        available to the [Secretary of Transportation] Federal 
        Aviation Administration to make a grant for airport 
        development or airport planning under section 47104 of 
        this title;
          (2) subsection (c)(2)(B)(iii) of this section is 
        available to the [Secretary] Administration--
                  (A) to make a grant for a purpose described 
                in section 47115(b) of this title; and
                  (B) for use under section 47114(d)(2) of this 
                title at another airport in the State in which 
                the land was disposed of under subsection 
                (c)(2)(B)(ii) of this section; and
          (3) subsection (c)(2)(B)(iii) of this section is in 
        addition to an amount made available to the [Secretary] 
        Administration under section 48103 of this title and 
        not subject to apportionment under section 47114 of 
        this title.
  (g) Ensuring Compliance.--(1) To ensure compliance with this 
section, the [Secretary of Transportation] Federal Aviation 
Administration--
          (A) shall prescribe requirements for sponsors that 
        the [Secretary] Administration considers necessary; and
          (B) may make a contract with a public agency.
  (2) The [Secretary of Transportation] Federal Aviation 
Administration may approve an application for a project grant 
only if the [Secretary] Administration is satisfied that the 
requirements prescribed under paragraph (1)(A) of this 
subsection have been or will be met.
  (h) Modifying Assurances and Requiring Compliance With 
Additional Assurances.--Before modifying an assurance required 
of a person receiving a grant under this subchapter and in 
effect after December 29, 1987, or to require compliance with 
an additional assurance from the person, the [Secretary of 
Transportation] Federal Aviation Administration must--
          (1) publish notice of the proposed modification in 
        the Federal Register; and
          (2) provide an opportunity for comment on the 
        proposal.
  (i) Relief From Obligation To Provide Free Space.--When a 
sponsor provides a property interest in a land or water area or 
a building that the [Secretary of Transportation] Federal 
Aviation Administration uses to construct a facility at 
Government expense, the [Secretary] Administration may relieve 
the sponsor from an obligation in a contract made under this 
chapter, the Airport and Airway Development Act of 1970, or the 
Federal Airport Act to provide free space to the Government in 
an airport building, to the extent the [Secretary] 
Administration finds that the free space no longer is needed to 
carry out activities related to air traffic control or 
navigation.
  (j) Use of Revenue in Hawaii.--(1) * * *
          * * * * * * *
  (5) Hawaii shall determine costs, revenue, and projected 
revenue increases referred to in this subsection and shall 
submit the determinations to the [Secretary of Transportation] 
Federal Aviation Administration. A determination is approved 
unless the [Secretary] Administration disapproves it not later 
than 30 days after it is submitted.
  (6) Hawaii is not eligible for a grant under section 47115 of 
this title in a fiscal year in which Hawaii uses under 
paragraph (2) of this subsection revenue from sales referred to 
in paragraph (2). Hawaii shall repay amounts it receives in a 
fiscal year under a grant it is not eligible to receive because 
of this paragraph to the [Secretary of Transportation] Federal 
Aviation Administration for deposit in the discretionary fund 
established under section 47115.
  (7)(A) This subsection applies only to revenue from sales 
referred to in paragraph (2) of this subsection from May 5, 
1990, through December 30, 1994, and to amounts in the Airport 
Revenue Fund of Hawaii that are attributable to revenue before 
May 4, 1990, on sales referred to in paragraph (2).
  (B) Revenue from sales referred to in paragraph (2) of this 
subsection from May 5, 1990, through December 30, 1994, may be 
used under paragraph (2) in any Hawaiian fiscal year, including 
a Hawaiian fiscal year beginning after December 31, 1994.
  (k) Annual Summaries of Financial Reports.--The [Secretary] 
Administration shall provide to the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on 
[Public Works and Transportation] Transportation and 
Infrastructure of the House of Representatives an annual 
summary of the reports submitted to the [Secretary] 
Administration under subsection (a)(19) of this section and 
under section 111(b) of the Federal Aviation Administration 
Authorization Act of 1994.
  (l) Policies and Procedures To Ensure Enforcement Against 
Illegal Diversion of Airport Revenue.--
          (1) In general.--Not later than 90 days after the 
        date of the enactment of this subsection, the 
        [Secretary of Transportation] Federal Aviation 
        Administration shall establish policies and procedures 
        that will assure the prompt and effective enforcement 
        of subsections (a)(13) and (b) of this section and 
        grant assurances made under such subsections. Such 
        policies and procedures shall recognize the exemption 
        provision in subsection (b)(2) of this section and 
        shall respond to the information contained in the 
        reports of the Inspector General of the Department of 
        Transportation on airport revenue diversion and such 
        other relevant information as the [Secretary] 
        Administration may by law consider.
          * * * * * * *
          (4) Administrative safeguards.--Policies and 
        procedures to be established pursuant to paragraph (1) 
        shall mandate internal controls, auditing requirements, 
        and increased levels of Department of Transportation 
        personnel sufficient to respond fully and promptly to 
        complaints received regarding possible violations of 
        subsections (a)(13) and (b) of this section and grant 
        assurances made under such subsections and to alert the 
        [Secretary] Administration to such possible violations.

Sec. 47108. Project grant agreements

  (a) Offer and Acceptance.--On approving a project grant 
application under this subchapter, the [Secretary of 
Transportation] Federal Aviation Administration shall offer the 
sponsor a grant to pay the United States Government's share of 
the project costs allowable under section 47110 of this title. 
The [Secretary] Administration may impose terms on the offer 
that the [Secretary] Administration considers necessary to 
carry out this subchapter and regulations prescribed under this 
subchapter. An offer shall state the obligations to be assumed 
by the sponsor and the maximum amount the Government will pay 
for the project from the amounts authorized under chapter 481 
of this title (except sections 48102(e), 48106, 48107, and 
48110). At the request of the sponsor, an offer of a grant for 
a project that will not be completed in one fiscal year shall 
provide for the obligation of amounts apportioned or to be 
apportioned to a sponsor under section 47114(c) of this title 
for the fiscal years necessary to pay the Government's share of 
the cost of the project. An offer that is accepted in writing 
by the sponsor is an agreement binding on the Government and 
the sponsor. The Government may pay or be obligated to pay a 
project cost only after a grant agreement for the project is 
signed.
          * * * * * * *
  (d) Changing Workscope.--With the consent of the sponsor, the 
[Secretary] Administration may amend a grant agreement made 
under this subchapter to change the workscope of a project 
financed under the grant if the amendment does not result in an 
increase in the maximum amount the Government may pay under 
subsection (b) of this section.
          * * * * * * *

Sec. 47110. Allowable project costs

  (a) General Authority.--Except as provided in section 47111 
of this title, the United States Government may pay or be 
obligated to pay, from amounts appropriated to carry out this 
subchapter, a cost incurred in carrying out a project under 
this subchapter only if the [Secretary of Transportation] 
Federal Aviation Administration decides the cost is allowable.
  (b) Allowable Cost Standards.--A project cost is allowable--
          (1) if the cost necessarily is incurred in carrying 
        out the project in compliance with the grant agreement 
        made for the project under this subchapter, including 
        any cost a sponsor incurs related to an audit the 
        [Secretary] Administration requires under section 
        47121(b) or (d) of this title;
          (2)(A) if the cost is incurred after the grant 
        agreement is executed and is for airport development or 
        airport planning carried out after the grant agreement 
        is executed;
          (B) if the cost is incurred after June 1, 1989, by 
        the airport operator (regardless of when the grant 
        agreement is executed) as part of a Government-approved 
        noise compatability program (including project 
        formulation costs) and is consistent with all 
        applicable statutory and administrative requirements; 
        or
          (C) if the Government's share is paid only with 
        amounts apportioned under section 47114(c)(1)(A) and 
        (2) of this title and if the cost is incurred--
                  (i) during the fiscal year ending September 
                30, 1994;
                  (ii) before a grant agreement is executed for 
                the project but according to an airport layout 
                plan the [Secretary] Administration approves 
                before the cost is incurred and all applicable 
                statutory and administrative requirements that 
                would apply to the project if the agreement had 
                been executed; and
                  (iii) for work related to a project for which 
                a grant agreement previously was executed 
                during the fiscal year ending September 30, 
                1994;
          (3) to the extent the cost is reasonable in amount;
          (4) if the cost is not incurred in a project for 
        airport development or airport planning for which other 
        Government assistance has been granted; and
          (5) if the total costs allowed for the project are 
        not more than the amount stated in the grant agreement 
        as the maximum the Government will pay (except as 
        provided in section 47108(b) of this title).
  (c) Certain Prior Costs as Allowable Costs.--The [Secretary] 
Administration may decide that a project cost under subsection 
(b)(2)(A) of this section incurred after May 13, 1946, and 
before the date the grant agreement is executed is allowable if 
it is--
          (1) necessarily incurred in formulating an airport 
        development project, including costs incurred for field 
        surveys, plans and specifications, property interests 
        in land or airspace, and administration or other 
        incidental items that would not have been incurred 
        except for the project; or
          (2) necessarily and directly incurred in developing 
        the work scope of an airport planning project.
  (d) Terminal Development Costs.--(1) The [Secretary] 
Administration may decide that the cost of terminal development 
(including multi-modal terminal development) in a nonrevenue-
producing public-use area of a commercial service airport is 
allowable for an airport development project at the airport--
          (A) if the sponsor certifies that the airport, on the 
        date the grant application is submitted to the 
        [Secretary] Administration, has--
                  (i) all the safety equipment required for 
                certification of the airport under section 
                44706 of this title;
                  (ii) all the security equipment required by 
                regulation; and
                  (iii) provided for access, to the area of the 
                airport for passengers for boarding or exiting 
                aircraft, to those passengers boarding or 
                exiting aircraft, except air carrier aircraft;
          (B) if the cost is directly related to moving 
        passengers and baggage in air commerce within the 
        airport, including vehicles for moving passengers 
        between terminal facilities and between terminal 
        facilities and aircraft; and
          (C) under terms necessary to protect the interests of 
        the Government.
  (2) In making a decision under paragraph (1) of this 
subsection, the [Secretary] Administration may approve as 
allowable costs the expenses of terminal development in a 
revenue-producing area and construction, reconstruction, 
repair, and improvement in a nonrevenue-producing parking lot 
if--
          (A) the airport does not have more than .05 percent 
        of the total annual passenger boardings in the United 
        States; and
          (B) the sponsor certifies that any needed airport 
        development project affecting safety, security, or 
        capacity will not be deferred because of the 
        [Secretary's] Administration's approval.
  (e) Letters of Intent.--(1) The [Secretary] Federal Aviation 
Board may issue a letter of intent to the sponsor stating an 
intention to obligate from future budget authority an amount, 
not more than the Government's share of allowable project 
costs, for an airport development project (including costs of 
formulating the project) at a primary or reliever airport. The 
letter shall establish a schedule under which the [Secretary] 
Federal Aviation Administration will reimburse the sponsor for 
the Government's share of allowable project costs, as amounts 
become available, if the sponsor, after the [Secretary] Federal 
Aviation Board issues the letter, carries out the project 
without receiving amounts under this subchapter.
  (2) Paragraph (1) of this subsection applies to a project--
          (A) about which the sponsor notifies the [Secretary] 
        Federal Aviation Board, before the project begins, of 
        the sponsor's intent to carry out the project;
          (B) that will comply with all statutory and 
        administrative requirements that would apply to the 
        project if it were carried out with amounts made 
        available under this subchapter; and
          (C) the [Secretary] Federal Aviation Board decides 
        will enhance system-wide airport capacity significantly 
        and meets the criteria of section 47115(d) of this 
        title.
  (3) A letter of intent issued under paragraph (1) of this 
subsection is not an obligation of the Government under section 
1501 of title 31, and the letter is not deemed to be an 
administrative commitment for financing. An obligation or 
administrative commitment may be made only as amounts are 
provided in authorization and appropriation laws.
  (4) The total estimated amount of future Government 
obligations covered by all outstanding letters of intent under 
paragraph (1) of this subsection may not be more than the 
amount authorized to carry out section 48103 of this title, 
less an amount reasonably estimated by the [Secretary] Federal 
Aviation Administration to be needed for grants under section 
48103 that are not covered by a letter.
  (5) A letter of intent issued under paragraph (1) of this 
subsection may not condition the obligation of amounts on the 
imposition of a passenger facility fee.
          (6) Limitation on statutory construction.--Nothing in 
        this section shall be construed to prohibit the 
        obligation of amounts pursuant to a letter of intent 
        under this subsection in the same fiscal year as the 
        letter of intent is issued.
  (f) Nonallowable Costs.--Except as provided in subsection (d) 
of this section and section 47118(f) of this title, a cost is 
not an allowable airport development project cost if it is 
for--
          (1) constructing a public parking facility for 
        passenger automobiles;
          (2) constructing, altering, or repairing part of an 
        airport building, except to the extent the building 
        will be used for facilities or activities directly 
        related to the safety of individuals at the airport;
          (3) decorative landscaping; or
          (4) providing or installing sculpture or art works.

Sec. 47111. Payments under project grant agreements

  (a) General Authority.--After making a project grant 
agreement under this subchapter and consulting with the 
sponsor, the [Secretary of Transportation] Federal Aviation 
Administration may decide when and in what amounts payments 
under the agreement will be made. Payments totaling not more 
than 90 percent of the United States Government's share of the 
project's estimated allowable costs may be made before the 
project is completed if the sponsor certifies to the 
[Secretary] Administration that the total amount expended from 
the advance payments at any time will not be more than the cost 
of the airport development work completed on the project at 
that time.
  (b) Recovering Payments.--If the [Secretary] Administration 
determines that the total amount of payments made under a grant 
agreement under this subchapter is more than the Government's 
share of the total allowable project costs, the Government may 
recover the excess amount. If the [Secretary] Administration 
finds that a project for which an advance payment was made has 
not been completed within a reasonable time, the Government may 
recover any part of the advance payment for which the 
Government received no benefit.
  (c) Payment Deposits.--A payment under a project grant 
agreement under this subchapter may be made only to an official 
or depository designated by the sponsor and authorized by law 
to receive public money.
  (d) Withholding Payments.--(1) The [Secretary] Administration 
may withhold a payment under a grant agreement under this 
subchapter for more than 180 days after the payment is due only 
if the [Secretary] Administration--
          (A) notifies the sponsor and provides an opportunity 
        for a hearing; and
          (B) finds that the sponsor has violated the 
        agreement.
  (2) The 180-day period may be extended by--
          (A) agreement of the [Secretary] Administration and 
        the sponsor; or
          (B) the hearing officer if the officer decides an 
        extension is necessary because the sponsor did not 
        follow the schedule the officer established.
  (3) A person adversely affected by an order of the 
[Secretary] Administration withholding a payment may apply for 
review of the order by filing a petition in the United States 
Court of Appeals for the District of Columbia Circuit or in the 
court of appeals of the United States for the circuit in which 
the project is located. The petition must be filed not later 
than 60 days after the order is served on the petitioner.
  (e) Action on Grant Assurances Concerning Airport Revenues.--
If, after notice and opportunity for a hearing, the [Secretary] 
Administration finds a violation of section 47107(b) of this 
title, as further defined by the [Secretary] Administration 
under section 47107(l) of this title, or a violation of an 
assurance made under section 47107(b) of this title, and the 
[Secretary] Administration has provided an opportunity for the 
airport sponsor to take corrective action to cure such 
violation, and such corrective action has not been taken within 
the period of time set by the [Secretary] Administration, the 
[Secretary] Administration shall withhold approval of any new 
grant application for funds under this chapter, or any proposed 
modification to an existing grant that would increase the 
amount of funds made available under this chapter to the 
airport sponsor, and withhold approval of any new application 
to impose a fee under section 40117 of this title. Such 
applications may thereafter be approved only upon a finding by 
the [Secretary] Administration that such corrective action as 
the [Secretary] Administration requires has been taken to 
address the violation and that the violation no longer exists.
  (f) Judicial Enforcement.--For any violation of this chapter 
or any grant assurance made under this chapter, the [Secretary] 
Administration may apply to the district court of the United 
States for any district in which the violation occurred for 
enforcement. Such court shall have jurisdiction to enforce 
obedience thereto by a writ of injunction or other process, 
mandatory or otherwise, restraining any person from further 
violation.

Sec. 47112. Carrying out airport development projects

  (a) Construction Work.--The [Secretary of Transportation] 
Federal Aviation Administration may inspect and approve 
construction work for an airport development project carried 
out under a grant agreement under this subchapter. The 
construction work must be carried out in compliance with 
regulations the [Secretary] Administration prescribes. The 
regulations shall require the sponsor to make necessary cost 
and progress reports on the project. The regulations may amend 
or modify a contract related to the project only if the 
contract was made with actual notice of the regulations.
          * * * * * * *

Sec. 47113. Minority and disadvantaged business participation

  (a) Definitions.--In this section--
          (1) ``small business concern''--
                  (A) has the same meaning given that term in 
                section 3 of the Small Business Act (15 U.S.C. 
                632); but
                  (B) does not include a concern, or group of 
                concerns controlled by the same socially and 
                economically disadvantaged individual, that has 
                average annual gross receipts over the prior 3 
                fiscal years of more than $16,015,000, as 
                adjusted by the [Secretary of Transportation] 
                Federal Aviation Administration for inflation.
          (2) ``socially and economically disadvantaged 
        individual'' has the same meaning given that term in 
        section 8(d) of the Act (15 U.S.C. 637(d)) and relevant 
        subcontracting regulations prescribed under section 
        8(d), except that women are presumed to be socially and 
        economically disadvantaged.
  (b) General Requirement.--Except to the extent the 
[Secretary] Administration decides otherwise, at least 10 
percent of amounts available in a fiscal year under section 
48103 of this title shall be expended with small business 
concerns owned and controlled by socially and economically 
disadvantaged individuals.
  (c) Uniform Criteria.--The [Secretary] Administration shall 
establish minimum uniform criteria for State governments and 
airport sponsors to use in certifying whether a small business 
concern qualifies under this section. The criteria shall 
include on-site visits, personal interviews, licenses, analyses 
of stock ownership and bonding capacity, listings of equipment 
and work completed, resumes of principal owners, financial 
capacity, and type of work preferred.
  (d) Surveys and Lists.--Each State or airport sponsor 
annually shall survey and compile a list of small business 
concerns referred to in subsection (b) of this section and the 
location of each concern in the State.

Sec. 47114. Apportionments

  (a) Definition.--In this section, ``amount subject to 
apportionment'' means the amount newly made available under 
section 48103 of this title for a fiscal year.
  (b) Apportionment Date.--On the first day of each fiscal 
year, the [Secretary of Transportation] Federal Aviation 
Administration shall apportion the amount subject to 
apportionment for that fiscal year as provided in this section.
  (c) Amounts Apportioned to Sponsors.--(1)(A) The [Secretary] 
Administration shall apportion to the sponsor of each primary 
airport for each fiscal year an amount equal to--
          (i) $7.80 for each of the first 50,000 passenger 
        boardings at the airport during the prior calendar 
        year;
          (ii) $5.20 for each of the next 50,000 passenger 
        boardings at the airport during the prior calendar 
        year;
          (iii) $2.60 for each of the next 400,000 passenger 
        boardings at the airport during the prior calendar 
        year; and
          (iv) $.65 for each additional passenger boarding at 
        the airport during the prior calendar year.
  (B) Not less than $500,000 nor more than $22,000,000 may be 
apportioned under subparagraph (A) of this paragraph to an 
airport sponsor for a primary airport for each fiscal year.
  (2)(A) The [Secretary] Administration shall apportion to the 
sponsors of airports served by aircraft providing air 
transportation of only cargo with a total annual landed weight 
of more than 100,000,000 pounds for each fiscal year an amount 
equal to 3.5 percent of the amount subject to apportionment 
each year, allocated among those airports in the proportion 
that the total annual landed weight of those aircraft landing 
at each of those airports bears to the total annual landed 
weight of those aircraft landing at all those airports. 
However, not more than 8 percent of the amount apportioned 
under this paragraph may be apportioned for any one airport.
  (B) Landed weight under subparagraph (A) of this paragraph is 
the landed weight of aircraft landing at each of those airports 
and all those airports during the prior calendar year.
  (3)(A) Except as provided in subparagraph (B) of this 
paragraph, the total of all amounts apportioned under 
paragraphs (1) and (2) of this subsection may not be more than 
49.5 percent of the amount subject to apportionment for a 
fiscal year. If this subparagraph requires reduction of an 
amount that otherwise would be apportioned under this 
subsection, the [Secretary] Administration shall reduce 
proportionately the amount apportioned to each sponsor of an 
airport under paragraphs (1) and (2) until the 49.5 percent 
limit is achieved.
  (B) If a law limits the amount subject to apportionment to 
less than $1,900,000,000 for a fiscal year, the total of all 
amounts apportioned under paragraphs (1) and (2) of this 
subsection may not be more than 44 percent of the amount 
subject to apportionment for that fiscal year. If this 
subparagraph requires reduction of an amount that otherwise 
would be apportioned under this subsection, the [Secretary] 
Administration shall reduce proportionately the amount 
apportioned to each sponsor of an airport under paragraphs (1) 
and (2) until the 44 percent limit is achieved.
  (d) Amounts Apportioned to States.--(1) In this subsection--
          (A) ``area'' includes land and water.
          (B) ``population'' means the population stated in the 
        latest decennial census of the United States.
  (2) The [Secretary] Administration shall apportion to the 
States 12 percent of the amount subject to apportionment for 
each fiscal year as follows:
          (A) one percent of the apportioned amount to Guam, 
        American Samoa, the Northern Mariana Islands, the Trust 
        Territory of the Pacific Islands, and the Virgin 
        Islands.
          (B) except as provided in paragraph (3) of this 
        subsection, 49.5 percent of the apportioned amount for 
        airports, except primary airports and airports 
        described in section 47117(e)(1)(C) of this title, in 
        States not named in clause (A) of this paragraph in the 
        proportion that the population of each of those States 
        bears to the total population of all of those States.
          (C) except as provided in paragraph (3) of this 
        subsection, 49.5 percent of the apportioned amount for 
        airports, except primary airports and airports 
        described in section 47117(e)(1)(C) of this title, in 
        States not named in clause (A) of this paragraph in the 
        proportion that the area of each of those States bears 
        to the total area of all of those States.
  (3) An amount apportioned under paragraph (2) of this 
subsection for an airport in--
          (A) Alaska may be made available by the [Secretary] 
        Administration for a public airport described in 
        section 47117(e)(1)(C)(ii) of this title to which 
        section 15(a)(3)(A)(II) of the Airport and Airway 
        Development Act of 1970 applied during the fiscal year 
        that ended September 30, 1981; and
          (B) Puerto Rico may be made available by the 
        [Secretary] Administration for a primary airport and an 
        airport described in section 47117(e)(1)(C) of this 
        title.
  (e) Alternative Apportionment for Alaska.--(1) Instead of 
apportioning amounts for airports in Alaska under subsections 
(c) and (d) of this section, the [Secretary] Administration may 
apportion amounts for those airports in the way in which 
amounts were apportioned in the fiscal year ending September 
30, 1980, under section 15(a) of the Act. However, in 
apportioning amounts for a fiscal year under this subsection, 
the [Secretary] Administration shall apportion--
          (A) for each primary airport at least as much as 
        would be apportioned for the airport under subsection 
        (c)(1) of this section; and
          (B) a total amount at least equal to the minimum 
        amount required to be apportioned to airports in Alaska 
        in the fiscal year ending September 30, 1980, under 
        section 15(a)(3)(A) of the Act.
  (2) This subsection does not prohibit the [Secretary] 
Administration from making project grants for airports in 
Alaska from the discretionary fund under section 47115 of this 
title.
  (3) Airports referred to in this subsection include those 
public airports that received scheduled service as of September 
3, 1982, but were not apportioned amounts in the fiscal year 
ending September 30, 1980, under section 15(a) of the Act 
because the airports were not under the control of a State or 
local public agency.
  (f) Reducing Apportionments.--An amount that would be 
apportioned under this section (except subsection (c)(2)) in a 
fiscal year to the sponsor of an airport having at least .25 
percent of the total number of boardings each year in the 
United States and for which a fee is imposed in the fiscal year 
under section 40117 of this title shall be reduced by an amount 
equal to 50 percent of the projected revenues from the fee in 
the fiscal year but not by more than 50 percent of the amount 
that otherwise would be apportioned under this section.

Sec. 47115. Discretionary fund

  (a) Existence and Amounts in Fund.--The [Secretary of 
Transportation] Federal Aviation Administration has a 
discretionary fund. The fund consists of--
          (1) amounts subject to apportionment for a fiscal 
        year that are not apportioned under section 47114(c)-
        (e) of this title; and
          (2) 25 percent of amounts not apportioned under 
        section 47114 of this title because of section 
        47114(f).
  (b) Availability of Amounts.--Subject to subsection (c) of 
this section and section 47117(e) of this title, the fund is 
available for making grants for any purpose for which amounts 
are made available under section 48103 of this title that the 
[Secretary] Administration considers most appropriate to carry 
out this subchapter. However, 50 percent of amounts not 
apportioned under section 47114 of this title because of 
section 47114(f) and added to the fund is available for making 
grants for projects at small hub airports (as defined in 
section 41731 of this title).
  (c) Minimum Percentage for Primary and Reliever Airports.--At 
least 75 percent of the amount in the fund and distributed by 
the [Secretary] Administration in a fiscal year shall be used 
for making grants--
          (1) to preserve and enhance capacity, safety, and 
        security at primary and reliever airports; and
          (2) to carry out airport noise compatibility planning 
        and programs at primary and reliever airports.
  (d) Considerations.--In selecting a project for a grant to 
preserve and enhance capacity as described in subsection (c)(1) 
of this section, the [Secretary] Administration shall 
consider--
          (1) the effect the project will have on the overall 
        national air transportation system capacity;
          (2) the project benefit and cost; and
          (3) the financial commitment from non-United States 
        Government sources to preserve or enhance airport 
        capacity.
  (e) Waiving Percentage Requirement.--If the [Secretary] 
Administration decides the [Secretary] Administration cannot 
comply with the percentage requirement of subsection (c) of 
this section in a fiscal year because there are insufficient 
qualified grant applications to meet that percentage, the 
amount the [Secretary] Administration determines will not be 
distributed as required by subsection (c) is available for 
obligation during the fiscal year without regard to the 
requirement.
  (f) Consideration of Diversion of Revenues in Awarding 
Discretionary Grants.--
          (1) General rule.--Subject to paragraph (2), in 
        deciding whether or not to distribute funds to an 
        airport from the discretionary funds established by 
        subsection (a) of this section and section 47116 of 
        this title, the [Secretary] Administration shall 
        consider as a factor militating against the 
        distribution of such funds to the airport the fact that 
        the airport is using revenues generated by the airport 
        or by local taxes on aviation fuel for purposes other 
        than capital or operating costs of the airport or the 
        local airports system or other local facilities which 
        are owned or operated by the owner or operator of the 
        airport and directly and substantially related to the 
        actual air transportation of passengers or property.
          (2) Required finding.--Paragraph (1) shall apply only 
        when the [Secretary] Administration finds that the 
        amount of revenues used by the airport for purposes 
        other than capital or operating costs in the airport's 
        fiscal year preceding the date of the application for 
        discretionary funds exceeds the amount of such revenues 
        in the airport's first fiscal year ending after the 
        date of the enactment of this subsection, adjusted by 
        the [Secretary] Administration for changes in the 
        Consumer Price Index of All Urban Consumers published 
        by the Bureau of Labor Statistics of the Department of 
        Labor.
          * * * * * * *

Sec. 47116. Small airport fund

  (a) Existence and Amounts in Fund.--The [Secretary of 
Transportation] Federal Aviation Administration has a small 
airport fund. The fund consists of 75 percent of amounts not 
apportioned under section 47114 of this title because of 
section 47114(f).
  (b) Distribution of Amounts.--The [Secretary] Administration 
may distribute amounts in the fund in each fiscal year for any 
purpose for which amounts are made available under section 
48103 of this title as follows:
          (1) one-third for grants to sponsors of public-use 
        airports (except commercial service airports).
          (2) two-thirds for grants to sponsors of each 
        commercial service airport that each year has less than 
        .05 percent of the total boardings in the United States 
        in that year.
  (c) Authority To Receive Grant Not Dependent on Participation 
in Block Grant Pilot Program.--An airport in a State 
participating in the State block grant pilot program under 
section 47128 of this title may receive a grant under this 
section to the same extent the airport may receive a grant if 
the State were not participating in the program.

Sec. 47117. Use of apportioned amounts

  (a) Grant Purpose.--Except as provided in this section, an 
amount apportioned under section 47114 (c)(1) or (d)(2) of this 
title is available for making grants for any purpose for which 
amounts are made available under section 48103 of this title.
  (b) Period of Availability.--An amount apportioned under 
section 47114 of this title is available to be obligated for 
grants under the apportionment only during the fiscal year for 
which the amount was apportioned and the 2 fiscal years 
immediately after that year. If the amount is not obligated 
under the apportionment within that time, it shall be added to 
the discretionary fund.
  (c) Primary Airports.--(1) An amount apportioned to a sponsor 
of a primary airport under section 47114(c)(1) of this title is 
available for grants for any public-use airport of the sponsor 
included in the national plan of integrated airport systems.
  (2) A sponsor of a primary airport may make an agreement with 
the [Secretary of Transportation] Federal Aviation 
Administration waiving any part of the amount apportioned for 
the airport under section 47114(c)(1) of this title if the 
[Secretary] Administration makes the waived amount available 
for a grant for another public-use airport in the same State or 
geographical area as the primary airport.
  (d) State Use.--An amount apportioned to a State under--
          (1) section 47114(d)(2)(A) of this title is available 
        for grants for airports located in the State; and
          (2) section 47114(d)(2) (B) or (C) of this title is 
        available for grants for airports described in section 
        47114(d)(2) (B) or (C) and located in the State.
  (e) Special Apportionment Categories.--(1) The [Secretary] 
Administration shall use amounts made available under section 
48103 of this title for each fiscal year as follows:
          (A) at least 5 percent for grants for reliever 
        airports.
          (B) at least 12.5 percent for grants for airport 
        noise compatibility planning under section 47505(a)(2) 
        of this title and for carrying out noise compatibility 
        programs under section 47504(c)(1) of this title.
          (C) at least 1.5 percent for grants for--
                  (i) nonprimary commercial service airports; 
                and
                  (ii) public airports (except commercial 
                service airports) that were eligible for United 
                States Government assistance from amounts 
                apportioned under section 15(a)(3) of the 
                Airport and Airway Development Act of 1970, and 
                to which section 15(a)(3)(A) (I) or (II) of the 
                Act applied during the fiscal year that ended 
                September 30, 1981.
          (D) at least .75 percent for integrated airport 
        system planning grants to planning agencies designated 
        by the [Secretary] Administration and authorized by the 
        laws of a State or political subdivision of a State to 
        do planning for an area of the State or subdivision in 
        which a grant under this chapter is to be used.
          (E) at least 2.25 percent for the fiscal year ending 
        September 30, 1993, and at least 2.5 percent for each 
        of the fiscal years ending September 30, 1994, 1995, 
        and 1996, to sponsors of current or former military 
        airports designated by the [Secretary] Administration 
        under section 47118(a) of this title for grants for 
        developing current and former military airports to 
        improve the capacity of the national air transportation 
        system.
  (2) A grant from the amount apportioned under section 
47114(e) of this title may not be included as part of the 1.5 
percent required to be used for grants under paragraph (1)(C) 
of this subsection.
  (3) If the [Secretary] Administration decides that an amount 
required to be used for grants under paragraph (1) of this 
subsection cannot be used for a fiscal year because there are 
insufficient qualified grant applications, the amount the 
[Secretary] Administration determines cannot be used is 
available during the fiscal year for grants for other airports 
or for other purposes for which amounts are authorized for 
grants under section 48103 of this title.
  (f) Limitation for Commercial Service Airport in Alaska.--The 
[Secretary] Administration may not make a grant for a 
commercial service airport in Alaska of more than 110 percent 
of the amount apportioned for the airport for a fiscal year 
under section 47114(e) of this title.
  (g) Discretionary Use of Apportionments.--(1) Subject to 
paragraph (2) of this subsection, if the [Secretary] 
Administration finds, based on the notices the [Secretary] 
Administration receives under section 47105(e) of this title or 
otherwise, that an amount apportioned under section 47114 of 
this title will not be used for grants during a fiscal year, 
the [Secretary] Administration may use an equal amount for 
grants during that fiscal year for any of the purposes for 
which amounts are authorized for grants under section 48103 of 
this title.
  (2) The [Secretary] Administration may make a grant under 
paragraph (1) of this subsection only if the [Secretary] 
Administration decides that--
          (A) the total amount used for grants for the fiscal 
        year under section 48103 of this title will not be more 
        than the amount made available under section 48103 for 
        that fiscal year; and
          (B) the amounts authorized for grants under section 
        48103 of this title for later fiscal years are 
        sufficient for grants of the apportioned amounts that 
        were not used for grants under the apportionment during 
        the fiscal year and that remain available under 
        subsection (b) of this section.
  (h) Limiting Authority of [Secretary] Administration.--The 
authority of the [Secretary] Administration to make grants 
during a fiscal year from amounts that were apportioned for a 
prior fiscal year and remain available for approved airport 
development project grants under subsection (b) of this section 
may be impaired only by a law enacted after September 3, 1982, 
that expressly limits that authority.

Sec. 47118. Designating current and former military airports

  (a) General Requirements.--The [Secretary of Transportation] 
Federal Aviation Administration shall designate not more than 
15 current or former military airports for which grants may be 
made under section 47117(e)(1)(E) of this title. The 
[Secretary] Administration may only designate an airport for 
such grants (other than an airport designated for such grants 
on or before the date of the enactment of this sentence) if the 
[Secretary] Administration finds that grants under such section 
for projects at such airport would reduce delays at an airport 
with more than 20,000 hours of annual delays in commercial 
passenger aircraft takeoffs and landings.
  (b) Survey.--Not later than September 30, 1991, the 
[Secretary] Administration shall complete a survey of current 
and former military airports to identify which airports have 
the greatest potential to improve the capacity of the national 
air transportation system. The survey shall identify the 
capital development needs of those airports to make them part 
of the system and which of those qualify for grants under 
section 47104 of this title.
  (c) Considerations.--In carrying out this section, the 
[Secretary] Administration shall consider only current or 
former military airports that, when at least partly converted 
to civilian commercial or reliever airports as part of the 
national air transportation system, will enhance airport and 
air traffic control system capacity in major metropolitan areas 
and reduce current and projected flight delays.
  (d) Grants.--Grants under section 47117(e)(1)(E) of this 
title may be made for an airport designated under subsection 
(a) of this section for the 5 fiscal years following the 
designation.
  (e) Terminal Building Facilities.--Notwithstanding section 
47109(c) of this title, not more than $5,000,000 for each 
airport from amounts the [Secretary] Administration distributes 
under section 47115 of this title for a fiscal year is 
available to the sponsor of a current or former military 
airport the [Secretary] Administration designates under this 
section to construct, improve, or repair a terminal building 
facility, including terminal gates used for revenue passengers 
getting on or off aircraft. A gate constructed, improved, or 
repaired under this subsection--
          (1) may not be leased for more than 10 years; and
          (2) is not subject to majority in interest clauses.
  (f) Parking Lots, Fuel Farms, and Utilities.--Not more than a 
total of $4,000,000 for each airport from amounts the 
[Secretary] Administration distributes under section 47115 of 
this title for the fiscal years ending September 30, 1993-1996, 
is available to the sponsor of a current or former military 
airport the [Secretary] Administration designates under this 
section to construct, improve, or repair airport surface 
parking lots, fuel farms, and utilities.

Sec. 47119. Terminal development costs

  (a) Repaying Borrowed Money.--An amount apportioned under 
section 47114 of this title and made available to the sponsor 
of an air carrier airport at which terminal development was 
carried out after June 30, 1970, and before July 12, 1976, or, 
in the case of a commercial service airport which annually had 
less than 0.05 percent of the total enplanements in the United 
States, between January 1, 1992, and October 31, 1992, is 
available to repay immediately money borrowed and used to pay 
the costs for terminal development at the airport, if those 
costs would be allowable project costs under section 47110(d) 
of this title if they had been incurred after September 3, 
1982. An amount is available for a grant under this 
subsection--
          (1) only if--
                  (A) the sponsor submits the certification 
                required under section 47110(d) of this title;
                  (B) the [Secretary of Transportation] Federal 
                Aviation Administration decides that using the 
                amount to repay the borrowed money will not 
                defer an airport development project outside 
                the terminal area at that airport; and
                  (C) amounts available for airport development 
                under this subchapter will not be used for 
                additional terminal development projects at the 
                airport for at least 3 years beginning on the 
                date the grant is used to repay the borrowed 
                money; and
          (2) subject to the limitations in subsections (b) (1) 
        and (2) of this section.
  (b) Availability of Amounts.--In a fiscal year, the 
[Secretary] Administration may make available--
          (1) to a sponsor of a primary airport, any part of 
        amounts apportioned to the sponsor for the fiscal year 
        under section 47114(c)(1) of this title to pay project 
        costs allowable under section 47110(d) of this title;
          (2) on approval of the [Secretary] Administration, 
        not more than $200,000 of the amount that may be 
        distributed for the fiscal year from the discretionary 
        fund established under section 47115 of this title--
                  (A) to a sponsor of a nonprimary commercial 
                service airport to pay project costs allowable 
                under section 47110(d) of this title; and
                  (B) to a sponsor of a reliever airport for 
                the types of project costs allowable under 
                section 47110(d), including project costs 
                allowable for a commercial service airport that 
                each year does not have more than .05 percent 
                of the total boardings in the United States;
          (3) for use by a primary airport that each year does 
        not have more than .05 percent of the total boardings 
        in the United States, any part of amounts that may be 
        distributed for the fiscal year from the discretionary 
        fund and small airport fund to pay project costs 
        allowable under section 47110(d) of this title; or
          (4) not more than $25,000,000 to pay project costs 
        allowable for the fiscal year under section 47110(d) of 
        this title for projects at commercial service airports 
        that were not eligible for assistance for terminal 
        development during the fiscal year ending September 30, 
        1980, under section 20(b) of the Airport and Airway 
        Development Act of 1970.
  (c) Nonhub Airports.--With respect to a project at a 
commercial service airport which annually has less than 0.05 
percent of the total enplanements in the United States, the 
[Secretary] Administration may approve the use of the amounts 
described in subsection (a) notwithstanding the requirements of 
sections 47107(a)(17), 47112, and 47113.

Sec. 47120. Grant priority

  In making a grant under this subchapter, the [Secretary of 
Transportation] Federal Aviation Administration may give 
priority to a project that is consistent with an integrated 
airport system plan.

Sec. 47121. Records and audits

  (a) Records.--A sponsor shall keep the records the [Secretary 
of Transportation] Federal Aviation Administration requires. 
The [Secretary] Administration may require records--
          (1) that disclose--
                  (A) the amount and disposition by the sponsor 
                of the proceeds of the grant;
                  (B) the total cost of the plan or program for 
                which the grant is given or used; and
                  (C) the amounts and kinds of costs of the 
                plan or program provided by other sources; and
          (2) that make it easier to carry out an audit.
  (b) Audits and Examinations.--The [Secretary] Administration 
and the Comptroller General may audit and examine records of a 
sponsor that are related to a grant made under this subchapter.
  (c) Authority of Comptroller General.--When an independent 
audit is made of the accounts of a sponsor under this 
subchapter related to the disposition of the proceeds of the 
grant or related to the plan or program for which the grant was 
given or used, the sponsor shall submit a certified copy of the 
audit to the Comptroller General not more than 6 months after 
the end of the fiscal year for which the audit was made. Not 
later than April 15 of each year, the Comptroller General shall 
report to Congress describing the results of each audit 
conducted or reviewed by the Comptroller General under this 
section during the prior fiscal year. The Comptroller General 
shall prescribe regulations necessary to carry out this 
subsection.
  (d) Audit Requirement.--The [Secretary] Administration may 
require a sponsor to conduct an appropriate audit as a 
condition for receiving a grant under this subchapter.
  (e) Annual Review.--The [Secretary] Administration shall 
review annually the recordkeeping and reporting requirements 
under this subchapter to ensure that they are the minimum 
necessary to carry out this subchapter.
  (f) Withholding Information From Congress.--This section does 
not authorize the [Secretary] Administration or the Comptroller 
General to withhold information from a committee of Congress 
authorized to have the information.

Sec. 47122. Administrative

  (a) General.--The [Secretary of Transportation] Federal 
Aviation Administration may take action the [Secretary] 
Administration considers necessary to carry out this 
subchapter, including conducting investigations and public 
hearings, prescribing regulations and procedures, and issuing 
orders.
  (b) Conducting Investigations and Public Hearings.--In 
conducting an investigation or public hearing under this 
subchapter, the [Secretary] Administration has the same 
authority the [Secretary] Administration has under section 
46104 of this title. An action of the [Secretary] 
Administration in exercising that authority is governed by the 
procedures specified in section 46104 and shall be enforced as 
provided in section 46104.

Sec. 47123. Nondiscrimination

  The [Secretary of Transportation] Federal Aviation 
Administration shall take affirmative action to ensure that an 
individual is not excluded because of race, creed, color, 
national origin, or sex from participating in an activity 
carried out with money received under a grant under this 
subchapter. The [Secretary] Administration shall prescribe 
regulations necessary to carry out this section. The 
regulations shall be similar to those in effect under title VI 
of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.). This 
section is in addition to title VI of the Act.

Sec. 47124. Agreements for State and local operation of airport 
                    facilities

  (a) Government Relief From Liability.--The [Secretary of 
Transportation] Federal Aviation Administration shall ensure 
that an agreement under this subchapter with a State or a 
political subdivision of a State to allow the State or 
subdivision to operate an airport facility in the State or 
subdivision relieves the United States Government from any 
liability arising out of, or related to, acts or omissions of 
employees of the State or subdivision in operating the airport 
facility.
  (b) Air Traffic Control Contract Program.--(1) The 
[Secretary] Administration shall continue the low activity 
(Visual Flight Rules) level I air traffic control tower 
contract program established under subsection (a) of this 
section for towers existing on December 30, 1987, and extend 
the program to other towers as practicable.
  (2) The [Secretary] Administration may make a contract, on a 
sole source basis, with a State or a political subdivision of a 
State to allow the State or subdivision to operate an airport 
traffic control tower classified as a level I (Visual Flight 
Rules) tower if the [Secretary] Administration decides that the 
State or subdivision has the capability to comply with the 
requirements of this paragraph. The contract shall require that 
the State or subdivision comply with applicable safety 
regulations in operating the facility and with applicable 
competition requirements in making a subcontract to perform 
work to carry out the contract.

Sec. 47125. Conveyances of United States Government land

  (a) Conveyances to Public Agencies.--Except as provided in 
subsection (b) of this section, the [Secretary of 
Transportation] Federal Aviation Administration shall request 
the head of the department, agency, or instrumentality of the 
United States Government owning or controlling land or airspace 
to convey a property interest in the land or airspace to the 
public agency sponsoring the project or owning or controlling 
the airport when necessary to carry out a project under this 
subchapter at a public airport, to operate a public airport, or 
for the future development of an airport under the national 
plan of integrated airport systems. The head of the department, 
agency, or instrumentality shall decide whether the requested 
conveyance is consistent with the needs of the department, 
agency, or instrumentality and shall notify the [Secretary] 
Administration of that decision not later than 4 months after 
receiving the request. If the head of the department, agency, 
or instrumentality decides that the requested conveyance is 
consistent with its needs, the head of the department, agency, 
or instrumentality, with the approval of the Attorney General 
and without cost to the Government, shall make the conveyance. 
A conveyance may be made only on the condition that the 
property interest conveyed reverts to the Government, at the 
option of the [Secretary] Administration, to the extent it is 
not developed for an airport purpose or used consistently with 
the conveyance.
  (b) Nonapplication.--Except as specifically provided by law, 
subsection (a) of this section does not apply to land or 
airspace owned or controlled by the Government within--
          (1) a national park, national monument, national 
        recreation area, or similar area under the 
        administration of the National Park Service;
          (2) a unit of the National Wildlife Refuge System or 
        similar area under the jurisdiction of the United 
        States Fish and Wildlife Service; or
          (3) a national forest or Indian reservation.

Sec. 47126. Criminal penalties for false statements

  A person (including an officer, agent, or employee of the 
United States Government or a public agency) shall be fined 
under title 18, imprisoned for not more than 5 years, or both, 
if the person, with intent to defraud the Government, knowingly 
makes--
          (1) a false statement about the kind, quantity, 
        quality, or cost of the material used or to be used, or 
        the quantity, quality, or cost of work performed or to 
        be performed, in connection with the submission of a 
        plan, map, specification, contract, or estimate of 
        project cost for a project included in a grant 
        application submitted to the [Secretary of 
        Transportation] Federal Aviation Administration for 
        approval under this subchapter;
          (2) a false statement or claim for work or material 
        for a project included in a grant application approved 
        by the [Secretary] Administration under this 
        subchapter; or
          (3) a false statement in a report or certification 
        required under this subchapter.

Sec. 47127. Ground transportation demonstration projects

  (a) General Authority.--To improve the airport and airway 
system of the United States consistent with regional airport 
system plans financed under section 13(b) of the Airport and 
Airway Development Act of 1970, the [Secretary of 
Transportation] Federal Aviation Administration may carry out 
ground transportation demonstration projects to improve ground 
access to air carrier airport terminals. The [Secretary] 
Administration may carry out a demonstration project 
independently or by grant or contract, including an agreement 
with another department, agency, or instrumentality of the 
United States Government.
  (b) Priority.--In carrying out this section, the [Secretary] 
Administration shall give priority to a demonstration project 
that--
          (1) affects an airport in an area with an operating 
        regional rapid transit system with existing facilities 
        reasonably near the airport;
          (2) includes connection of the airport terminal to 
        that system;
          (3) is consistent with and supports a regional 
        airport system plan adopted by the planning agency for 
        the region and submitted to the [Secretary] 
        Administration; and
          (4) improves access to air transportation for 
        individuals residing or working in the region by 
        encouraging the optimal balance of use of airports in 
        the region.

Sec. 47128. State block grant pilot program

  (a) General Requirements.--The [Secretary of Transportation] 
Federal Aviation Administration shall prescribe regulations to 
carry out a State block grant pilot program. The regulations 
shall provide that the [Secretary] Administration may designate 
not more than 7 qualified States to assume administrative 
responsibility for all airport grant amounts available under 
this subchapter, except for amounts designated for use at 
primary airports.
  (b) Applications and Selection.--(1) A State wishing to 
participate in the program must submit an application to the 
[Secretary] Administration. The [Secretary] Administration 
shall select a State on the basis of its application only 
after--
          (A) deciding the State has an organization capable of 
        effectively administering a block grant made under this 
        section;
          (B) deciding the State uses a satisfactory airport 
        system planning process;
          (C) deciding the State uses a programming process 
        acceptable to the [Secretary] Administration;
          (D) finding that the State has agreed to comply with 
        United States Government standard requirements for 
        administering the block grant; and
          (E) finding that the State has agreed to provide the 
        [Secretary] Administration with program information the 
        [Secretary] Administration requires.
  (2) For the fiscal years ending September 30, 1993-1996, the 
States selected shall include Illinois, Missouri, and North 
Carolina.
  (c) Safety and Security Needs and Needs of System.--Before 
deciding whether a planning process is satisfactory or a 
programming process is acceptable under subsection (b)(1)(B) or 
(C) of this section, the [Secretary] Administration shall 
ensure that the process provides for meeting critical safety 
and security needs and that the programming process ensures 
that the needs of the national airport system will be addressed 
in deciding which projects will receive money from the 
Government.
  (d) Ending Effective Date and Report.--This section is 
effective only through September 30, 1996.

Sec. 47129. Resolution of airport-air carrier disputes concerning 
                    airport fees

  (a) Authority To Request [Secretary's] Administration's 
Determination.--
          (1) In general.--The [Secretary of Transportation] 
        Federal Aviation Administration shall issue a 
        determination as to whether a fee imposed upon one or 
        more air carriers (as defined in section 40102 of this 
        subtitle) by the owner or operator of an airport is 
        reasonable if--
                  (A) a written request for such determination 
                is filed with the [Secretary] Administration by 
                such owner or operator; or
                  (B) a written complaint requesting such 
                determination is filed with the [Secretary] 
                Administration by an affected air carrier 
                within 60 days after such carrier receives 
                written notice of the establishment or increase 
                of such fee.
          (2) Calculation of fee.--A fee subject to a 
        determination of reasonableness under this section may 
        be calculated pursuant to either a compensatory or 
        residual fee methodology or any combination thereof.
          (3) [Secretary] Administration not to set fee.--In 
        determining whether a fee is reasonable under this 
        section, the [Secretary] Administration may only 
        determine whether the fee is reasonable or unreasonable 
        and shall not set the level of the fee.
  (b) Procedural Regulations.--Not later than 90 days after the 
date of the enactment of this section, the [Secretary] 
Administration shall publish in the Federal Register final 
regulations, policy statements, or guidelines establishing--
          (1) the procedures for acting upon any written 
        request or complaint filed under subsection (a)(1); and
          (2) the standards or guidelines that shall be used by 
        the [Secretary] Administration in determining under 
        this section whether an airport fee is reasonable.
  (c) Decisions By [Secretary] Administration.--The final 
regulations, policy statements, or guidelines required in 
subsection (b) shall provide the following:
          (1) Not more than 120 days after an air carrier files 
        with the [Secretary] Administration a written complaint 
        relating to an airport fee, the [Secretary] 
        Administration shall issue a final order determining 
        whether such fee is reasonable.
          (2) Within 30 days after such complaint is filed with 
        the [Secretary] Administration, the [Secretary] 
        Administration shall dismiss the complaint if no 
        significant dispute exists or shall assign the matter 
        to an administrative law judge; and thereafter the 
        matter shall be handled in accordance with part 302 of 
        title 14, Code of Federal Regulations, or as modified 
        by the [Secretary] Administration to ensure an orderly 
        disposition of the matter within the 120-day period and 
        any specifically applicable provisions of this section.
          (3) The administrative law judge shall issue a 
        recommended decision within 60 days after the complaint 
        is assigned or within such shorter period as the 
        [Secretary] Administration may specify.
          (4) If the [Secretary] Administration, upon the 
        expiration of 120 days after the filing of the 
        complaint, has not issued a final order, the decision 
        of the administrative law judge shall be deemed to be 
        the final order of the [Secretary] Administration.
          (5) Any party to the dispute may seek review of a 
        final order of the [Secretary] Administration under 
        this subsection in the Circuit Court of Appeals for the 
        District of Columbia Circuit or the court of appeals in 
        the circuit where the airport which gives rise to the 
        written complaint is located.
          (6) Any findings of fact in a final order of the 
        [Secretary] Administration under this subsection, if 
        supported by substantial evidence, shall be conclusive 
        if challenged in a court pursuant to this subsection. 
        No objection to such a final order shall be considered 
        by the court unless objection was urged before an 
        administrative law judge or the [Secretary] 
        Administration at a proceeding under this subsection 
        or, if not so urged, unless there were reasonable 
        grounds for failure to do so.
  (d) Payment Under Protest; Guarantee of Air Carrier Access.--
          (1) Payment under protest.--
                  (A) In general.--Any fee increase or newly 
                established fee which is the subject of a 
                complaint that is not dismissed by the 
                [Secretary] Administration shall be paid by the 
                complainant air carrier to the airport under 
                protest.
                  (B) Referral or credit.--Any amounts paid 
                under this subsection by a complainant air 
                carrier to the airport under protest shall be 
                subject to refund or credit to the air carrier 
                in accordance with directions in the final 
                order of the [Secretary] Administration within 
                30 days of such order.
                  (C) Assurance of timely repayment.--In order 
                to assure the timely repayment, with interest, 
                of amounts in dispute determined not to be 
                reasonable by the [Secretary] Administration, 
                the airport shall obtain a letter of credit, or 
                surety bond, or other suitable credit facility, 
                equal to the amount in dispute that is due 
                during the 120-day period established by this 
                section, plus interest, unless the airport and 
                the complainant air carrier agree otherwise.
                  (D) Deadline.--The letter of credit, or 
                surety bond, or other suitable credit facility 
                shall be provided to the [Secretary] 
                Administration within 20 days of the filing of 
                the complaint and shall remain in effect for 30 
                days after the earlier of 120 days or the 
                issuance of a timely final order by the 
                [Secretary] Administration determining whether 
                such fee is reasonable.
          (2) Guarantee of air carrier access.--Contingent upon 
        an air carrier's compliance with the requirements of 
        paragraph (1) and pending the issuance of a final order 
        by the [Secretary] Administration determining the 
        reasonableness of a fee that is the subject of a 
        complaint filed under subsection (a)(1)(B), an owner or 
        operator of an airport may not deny an air carrier 
        currently providing air service at the airport 
        reasonable access to airport facilities or service, or 
        otherwise interfere with an air carrier's prices, 
        routes, or services, as a means of enforcing the fee.
          * * * * * * *

Sec. 47130. Airport safety data collection

  Notwithstanding any other provision of law, the 
[Administrator of the] Federal Aviation Administration may 
contract, using sole source or limited source authority, for 
the collection of airport safety data.

Sec. 47131. Annual report

  Not later than April 1 of each year, the [Secretary of 
Transportation] Federal Aviation Administration shall submit to 
Congress a report on activities carried out under this 
subchapter during the prior fiscal year. The report shall 
include--
          (1) a detailed statement of airport development 
        completed;
          (2) the status of each project undertaken;
          (3) the allocation of appropriations; and
          (4) an itemized statement of expenditures and 
        receipts.

          SUBCHAPTER II--SURPLUS PROPERTY FOR PUBLIC AIRPORTS

Sec. 47151. Authority to transfer an interest in surplus property

  (a) General Authority.--Subject to sections 47152 and 47153 
of this title, a department, agency, or instrumentality of the 
executive branch of the United States Government or a wholly 
owned Government corporation may give a State, political 
subdivision of a State, or tax-supported organization any 
interest in surplus property--
          (1) that the [Secretary of Transportation] Federal 
        Aviation Administration decides is--
                  (A) desirable for developing, improving, 
                operating, or maintaining a public airport (as 
                defined in section 47102 of this title);
                  (B) reasonably necessary to fulfill the 
                immediate and foreseeable future requirements 
                for developing, improving, operating, or 
                maintaining a public airport; or
                  (C) needed for developing sources of revenue 
                from nonaviation businesses at a public 
                airport; and
          (2) if the Administrator of General Services approves 
        the gift and decides the interest is not best suited 
        for industrial use.
  (b) Ensuring Compliance.--Only the [Secretary] Administration 
may ensure compliance with an instrument giving an interest in 
surplus property under this subchapter. The [Secretary] 
Administration may amend the instrument to correct the 
instrument or to make the gift comply with law.
  (c) Disposing of Interests Not Given Under This Subchapter.--
An interest in surplus property that could be used at a public 
airport but that is not given under this subchapter shall be 
disposed of under other applicable law.

Sec. 47152. Terms of gifts

  Except as provided in section 47153 of this title, the 
following terms apply to a gift of an interest in surplus 
property under this subchapter:
          (1) A State, political subdivision of a State, or 
        tax-supported organization receiving the interest may 
        use, lease, salvage, or dispose of the interest for 
        other than airport purposes only after the [Secretary 
        of Transportation] Federal Aviation Administration 
        gives written consent that the interest can be used, 
        leased, salvaged, or disposed of without materially and 
        adversely affecting the development, improvement, 
        operation, or maintenance of the airport at which the 
        property is located.
          * * * * * * *
          (6) The Government is entitled to the nonexclusive 
        use, without charge, of the landing area of an airport 
        at which the property is located. The [Secretary] 
        Administration may limit the use of the landing area if 
        necessary to prevent unreasonable interference with use 
        by other authorized aircraft. However, the Government 
        shall--
                  (A) contribute a reasonable share, consistent 
                with the Government's use, of the cost of 
                maintaining and operating the landing area; and
                  (B) pay for damages caused by its use of the 
                landing area if its use of the landing area is 
                substantial.
          * * * * * * *

Sec. 47153. Waiving and adding terms

  (a) General Authority.--(1) The [Secretary of Transportation] 
Federal Aviation Administration may waive, without charge, a 
term of a gift of an interest in property under this subchapter 
if the [Secretary] Administration decides that--
          (A) the property no longer serves the purpose for 
        which it was given; or
          (B) the waiver will not prevent carrying out the 
        purpose for which the gift was made and is necessary to 
        advance the civil aviation interests of the United 
        States.
  (2) The [Secretary of Transportation] Federal Aviation 
Administration shall waive a term under paragraph (1) of this 
subsection on terms the Secretary considers necessary to 
protect or advance the civil aviation interests of the United 
States.
  (b) Waivers and Inclusion of Additional Terms on Request.--On 
request of the [Secretary of Transportation] Federal Aviation 
Administration or the Secretary of a military department, a 
department, agency, or instrumentality of the executive branch 
of the United States Government or a wholly owned Government 
corporation may waive a term required by section 47152 of this 
title or add another term if the appropriate Secretary decides 
it is necessary to protect or advance the interests of the 
United States in civil aviation or for national defense.

             CHAPTER 473--INTERNATIONAL AIRPORT FACILITIES

          * * * * * * *

Sec. 47302. Providing airport and airway property in foreign 
                    territories

  (a) General Authority.--Subject to the concurrence of the 
Secretary of State and the consideration of objectives of the 
International Civil Aviation Organization--
          (1) the [Secretary of Transportation] Federal 
        Aviation Administration may acquire, establish, and 
        construct airport property and airway property (except 
        meteorological facilities) in foreign territory; and
          * * * * * * *
  (c) Accepting Foreign Payments.--The [Secretary of 
Transportation or] Federal Aviation Administration or the 
Secretary of Commerce, as appropriate, may accept payment from 
a government of a foreign country or international organization 
for facilities or services sold or provided the government or 
organization under this chapter. The amount received may be 
credited to the appropriation current when the expenditures are 
or were paid, the appropriation current when the amount is 
received, or both.

Sec. 47303. Training foreign citizens

  Subject to the concurrence of the Secretary of State, the 
[Secretary of Transportation or] Federal Aviation 
Administration or the Secretary of Commerce, as appropriate, 
may train a foreign citizen in a subject related to aeronautics 
and essential to the orderly and safe operation of civil 
aircraft. The training may be provided--
          (1) directly by the appropriate [Secretary] agency 
        head or jointly with another department, agency, or 
        instrumentality of the United States Government;
          (2) through a public or private agency of the United 
        States (including a State or municipal educational 
        institution); or
          (3) through an international organization.

Sec. 47304. Transfer of airport and airway property

  (a) General Authority.--When requested by the government of a 
foreign country or an international organization, the 
[Secretary of Transportation or] Federal Aviation 
Administration or the Secretary of Commerce, as appropriate, 
may transfer to the government or organization airport property 
and airway property operated and maintained under this chapter 
by the appropriate [Secretary] agency heads in foreign 
territory. The transfer shall be on terms the appropriate 
[Secretary] agency head considers proper, including 
consideration agreed on through negotiations with the 
government or organization.
  (b) Property Installed or Controlled by Military.--Subject to 
terms to which the parties agree, the Secretary of a military 
department may transfer without charge to the [Secretary of 
Transportation] Federal Aviation Administration airport 
property and airway property (except meteorological 
facilities), and to the Secretary of Commerce meteorological 
facilities, that the Secretary of the military department 
installed or controls in territory outside the continental 
United States. The transfer may be made if consistent with the 
needs of national defense and--
          (1) the Secretary of the military department finds 
        that the property or facility is no longer required 
        exclusively for military purposes; and
          (2) the [Secretary of Transportation or] Chief 
        Executive Officer of the Federal Aviation 
        Administration or the Secretary of Commerce, as 
        appropriate, decides that the transfer is or may be 
        necessary to carry out this chapter.
  (c) Republic of Panama.--(1) The [Secretary of 
Transportation] Federal Aviation Administration may provide, 
operate, and maintain facilities and services for air 
navigation, airway communications, and air traffic control in 
the Republic of Panama subject to--
          (A) the approval of the Secretary of Defense; and
          (B) each obligation assumed by the United States 
        Government under an agreement between the Government 
        and the Republic of Panama.
  (2) The Secretary of a military department may transfer 
without charge to the [Secretary of Transportation] Federal 
Aviation Administration property located in the Republic of 
Panama when the [Secretary of Transportation] Federal Aviation 
Administration decides that the transfer may be useful in 
carrying out this chapter.
  (3) Subsection (b) of this section (related to the [Secretary 
of Transportation] Federal Aviation Administration) and section 
47302(a) and (b) of this title do not apply in carrying out 
this subsection.
  (d) Retaking Property for Military Requirement.--(1) * * *
  (2) On the recommendation of the [Secretary of Transportation 
or] Chief Executive Officer of the Federal Aviation 
Administration or the Secretary of Commerce, as appropriate, 
the Secretary of a military department may decide not to act 
under paragraph (1) of this subsection.

Sec. 47305. Administrative

  (a) General Authority.--The [Secretary of Transportation] 
Federal Aviation Administration shall consolidate, operate, 
protect, maintain, and improve airport property and airway 
property (except meteorological facilities), and the Secretary 
of Commerce may consolidate, operate, protect, maintain, and 
improve meteorological facilities, that the appropriate 
[Secretary] agency head has acquired and that are located in 
territory outside the continental United States. In carrying 
out this section, the appropriate [Secretary] agency head may--
          (1) adapt the property or facility to the needs of 
        civil aeronautics;
          (2) lease the property or facility for not more than 
        20 years;
          (3) make a contract, or provide directly, for 
        facilities and services;
          (4) make reasonable charges for aeronautical 
        services; and
          (5) acquire an interest in property.
  (b) Crediting Appropriations.--Money received from the direct 
sale or charge that the [Secretary of Transportation or] Chief 
Executive Officer of the Federal Aviation Administration or the 
Secretary of Commerce, as appropriate, decides is equivalent to 
the cost of facilities and services sold or provided under 
subsection (a)(3) and (4) of this section is credited to the 
appropriation from which the cost was paid. The balance shall 
be deposited in the Treasury as miscellaneous receipts.
          * * * * * * *

Sec. 47306. Criminal penalty

  A person that knowingly and willfully violates a regulation 
prescribed by the [Secretary of Transportation] Federal 
Aviation Administration to carry out this chapter shall be 
fined under title 18, imprisoned for not more than 6 months, or 
both.

                           CHAPTER 475--NOISE

          * * * * * * *

                     SUBCHAPTER I--NOISE ABATEMENT

Sec. 47501. Definitions

  In this subchapter--
          (1) ``airport'' means a public-use airport as defined 
        in section 47102 of this title.
          (2) ``airport operator'' means--
                  (A) for an airport serving air carriers that 
                have certificates from the [Secretary of 
                Transportation] Federal Aviation 
                Administration, any person holding an airport 
                operating certificate issued under section 
                44706 of this title; and
                  (B) for any other airport, the person 
                operating the airport.

Sec. 47502. Noise measurement and exposure systems and identifying land 
                    use compatible with noise exposure

  After consultation with the Administrator of the 
Environmental Protection Agency and United States Government, 
State, and interstate agencies that the [Secretary of 
Transportation] Federal Aviation Administration considers 
appropriate, the [Secretary] Administration shall by 
regulation--
          (1) establish a single system of measuring noise 
        that--
                  (A) has a highly reliable relationship 
                between projected noise exposure and surveyed 
                reactions of individuals to noise; and
                  (B) is applied uniformly in measuring noise 
                at airports and the surrounding area;
          (2) establish a single system for determining the 
        exposure of individuals to noise resulting from airport 
        operations, including noise intensity, duration, 
        frequency, and time of occurrence; and
          (3) identify land uses normally compatible with 
        various exposures of individuals to noise.

Sec. 47503. Noise exposure maps

  (a) Submission and Preparation.--An airport operator may 
submit to the [Secretary of Transportation] Federal Aviation 
Administration a noise exposure map showing the noncompatible 
uses in each area of the map on the date the map is submitted, 
a description of estimated aircraft operations during 1985, and 
how those operations will affect the map. The map shall--
          (1) be prepared in consultation with public agencies 
        and planning authorities in the area surrounding the 
        airport; and
          (2) comply with regulations prescribed under section 
        47502 of this title.
  (b) Revised Maps.--If a change in the operation of an airport 
will establish a substantial new noncompatible use in an area 
surrounding the airport, the airport operator shall submit a 
revised noise exposure map to the [Secretary] Administration 
showing the new noncompatible use.

Sec. 47504. Noise compatibility programs

  (a) Submissions.--(1) An airport operator that submitted a 
noise exposure map and related information under section 
47503(a) of this title may submit a noise compatibility program 
to the [Secretary of Transportation] Federal Aviation 
Administration after--
          (A) consulting with public agencies and planning 
        authorities in the area surrounding the airport, United 
        States Government officials having local responsibility 
        for the airport, and air carriers using the airport; 
        and
          (B) notice and an opportunity for a public hearing.
  (2) A program submitted under paragraph (1) of this 
subsection shall state the measures the operator has taken or 
proposes to take to reduce existing noncompatible uses and 
prevent introducing additional noncompatible uses in the area 
covered by the map. The measures may include--
          (A) establishing a preferential runway system;
          (B) restricting the use of the airport by a type or 
        class of aircraft because of the noise characteristics 
        of the aircraft;
          (C) constructing barriers and acoustical shielding 
        and soundproofing public buildings;
          (D) using flight procedures to control the operation 
        of aircraft to reduce exposure of individuals to noise 
        in the area surrounding the airport; and
          (E) acquiring land, air rights, easements, 
        development rights, and other interests to ensure that 
        the property will be used in ways compatible with 
        airport operations.
  (b) Approvals.--(1) The [Secretary] Administration shall 
approve or disapprove a program submitted under subsection (a) 
of this section (except as the program is related to flight 
procedures referred to in subsection (a)(2)(D) of this section) 
not later than 180 days after receiving it. The [Secretary] 
Administration shall approve the program (except as the program 
is related to flight procedures referred to in subsection 
(a)(2)(D)) if the program--
          (A) does not place an unreasonable burden on 
        interstate or foreign commerce;
          (B) is reasonably consistent with achieving the goal 
        of reducing noncompatible uses and preventing the 
        introduction of additional noncompatible uses; and
          (C) provides for necessary revisions because of a 
        revised map submitted under section 47503(b) of this 
        title.
  (2) A program (except as the program is related to flight 
procedures referred to in subsection (a)(2)(D) of this section) 
is deemed to be approved if the [Secretary] Administration does 
not act within the 180-day period.
  (3) The [Secretary] Administration shall submit any part of a 
program related to flight procedures referred to in subsection 
(a)(2)(D) of this section to the [Administrator of the] Federal 
Aviation Administration. The [Administrator] Administration 
shall approve or disapprove that part of the program.
  (c) Grants.--(1) The [Secretary] Administration may incur 
obligations to make grants from amounts available under section 
48103 of this title to carry out a project under a part of a 
noise compatibility program approved under subsection (b) of 
this section. A grant may be made to--
          (A) an airport operator submitting the program; and
          (B) a unit of local government in the area 
        surrounding the airport, if the [Secretary] 
        Administration decides the unit is able to carry out 
        the project.
          (2) Soundproofing and acquisition of certain 
        residential buildings and properties.--The [Secretary] 
        Administration may incur obligations to make grants 
        from amounts made available under section 48103 of this 
        title--
                  (A) for projects to soundproof residential 
                buildings--
                          (i) if the airport operator received 
                        approval for a grant for a project to 
                        soundproof residential buildings 
                        pursuant to section 301(d)(4)(B) of the 
                        Airport and Airway Safety and Capacity 
                        Expansion Act of 1987;
                          (ii) if the airport operator submits 
                        updated noise exposure contours, as 
                        required by the [Secretary] 
                        Administration; and
                          (iii) if the [Secretary] 
                        Administration determines that the 
                        proposed projects are compatible with 
                        the purposes of this chapter;
                  (B) to an airport operator and unit of local 
                government referred to in paragraph (1)(A) or 
                (1)(B) of this subsection to soundproof 
                residential buildings located on residential 
                properties, and to acquire residential 
                properties, at which noise levels are not 
                compatible with normal operations of an 
                airport--
                          (i) if the airport operator amended 
                        an existing local aircraft noise 
                        regulation during calendar year 1993 to 
                        increase the maximum permitted noise 
                        levels for scheduled air carrier 
                        aircraft as a direct result of 
                        implementation of revised aircraft 
                        noise departure procedures mandated for 
                        aircraft safety purposes by the 
                        [Administrator of the] Federal Aviation 
                        Administration for standardized 
                        application at airports served by 
                        scheduled air carriers;
                          (ii) if the airport operator submits 
                        updated noise exposure contours, as 
                        required by the [Secretary] 
                        Administration; and
                          (iii) if the [Secretary] 
                        Administration determines that the 
                        proposed projects are compatible with 
                        the purposes of this chapter;
          (C) to an airport operator and unit of local 
        government referred to in paragraph (1)(A) or (1)(B) of 
        this subsection to carry out any part of a program 
        developed before February 18, 1980, or before 
        implementing regulations were prescribed, if the 
        [Secretary] Administration decides the program is 
        substantially consistent with reducing existing 
        noncompatible uses and preventing the introduction of 
        additional noncompatible uses and the purposes of this 
        chapter will be furthered by promptly carrying out the 
        program; and
          (D) to an airport operator and unit of local 
        government referred to in paragraph (1)(A) or (1)(B) of 
        this subsection to soundproof a building in the noise 
        impact area surrounding the airport that is used 
        primarily for educational or medical purposes and that 
        the [Secretary] Administration decides is adversely 
        affected by airport noise.
  (3) An airport operator may agree to make a grant made under 
paragraph (1)(A) of this subsection available to a public 
agency in the area surrounding the airport if the [Secretary] 
Administration decides the agency is able to carry out the 
project.
  (4) The Government's share of a project for which a grant is 
made under this subsection is the greater of--
          (A) 80 percent of the cost of the project; or
          (B) the Government's share that would apply if the 
        amounts available for the project were made available 
        under subchapter I of chapter 471 of this title for a 
        project at the airport.
  (5) The provisions of subchapter I of chapter 471 of this 
title related to grants apply to a grant made under this 
chapter, except--
          (A) section 47109(a) and (b) of this title; and
          (B) any provision that the [Secretary] Administration 
        decides is inconsistent with, or unnecessary to carry 
        out, this chapter.
  (d) Government Relief From Liability.--The Government is not 
liable for damages from aviation noise because of action taken 
under this section.

Sec. 47505. Airport noise compatibility planning grants

  (a) General Authority.--The [Secretary of Transportation] 
Federal Aviation Administration may make a grant to a sponsor 
of an airport to develop, for planning purposes, information 
necessary to prepare and submit--
          (1) a noise exposure map and related information 
        under section 47503 of this title, including the cost 
        of obtaining the information; or
          (2) a noise compatibility program under section 47504 
        of this title.
          * * * * * * *

Sec. 47507. Nonadmissibility of noise exposure map and related 
                    information as evidence

  No part of a noise exposure map or related information 
described in section 47503 of this title that is submitted to, 
or prepared by, the [Secretary of Transportation] Federal 
Aviation Administration and no part of a list of land uses the 
[Secretary] Administration identifies as normally compatible 
with various exposures of individuals to noise may be admitted 
into evidence or used for any other purpose in a civil action 
asking for relief for noise resulting from the operation of an 
airport.

Sec. 47508. Noise standards for air carriers and foreign air carriers 
                    providing foreign air transportation

  (a) General Requirements.--The [Secretary of Transportation] 
Federal Aviation Administration shall require each air carrier 
and foreign air carrier providing foreign air transportation to 
comply with noise standards--
          (1) the [Secretary] Administration prescribed for new 
        subsonic aircraft in regulations of the [Secretary] 
        Administration in effect on January 1, 1977; or
          (2) of the International Civil Aviation Organization 
        that are substantially compatible with standards of the 
        [Secretary] Administration for new subsonic aircraft in 
        regulations of the [Secretary] Administration at parts 
        36 and 91 of title 14, Code of Federal Regulations, 
        prescribed between January 2, 1977, and January 1, 
        1982.
  (b) Compliance at Phased Rate.--The [Secretary] 
Administration shall require each air carrier and foreign air 
carrier providing foreign air transportation to comply with the 
noise standards at a phased rate similar to the rate for 
aircraft registered in the United States.
  (c) Nondiscrimination.--The requirement for air carriers 
providing foreign air transportation may not be more stringent 
than the requirement for foreign air carriers.

Sec. 47509. Research program on quiet aircraft technology for propeller 
                    and rotor driven aircraft

  (a) Establishment.--The [Administrator of the] Federal 
Aviation Administration and the Administrator of the National 
Aeronautics and Space Administration shall conduct a study to 
identify technologies for noise reduction of propeller driven 
aircraft and rotorcraft.
  (b) Goal.--The goal of the study conducted under subsection 
(a) is to determine the status of research and development now 
underway in the area of quiet technology for propeller driven 
aircraft and rotorcraft, including technology that is cost 
beneficial, and to determine whether a research program to 
supplement existing research activities is necessary.
  (c) Participation.--In conducting the study required under 
subsection (a), the [Administrator of the] Federal Aviation 
Administration and the Administrator of the National 
Aeronautics and Space Administration shall encourage the 
participation of the Department of Defense, the Department of 
the Interior, the airtour industry, the aviation industry, 
academia and other appropriate groups.
  (d) Report.--Not less than 280 days after the date of the 
enactment of this section, the [Administrator of the] Federal 
Aviation Administration and the Administrator of the National 
Aeronautics and Space Administration shall transmit to Congress 
a report on the results of the study required under subsection 
(a).
  (e) Research and Development Program.--If the [Administrator 
of the] Federal Aviation Administration and the Administrator 
of the National Aeronautics and Space Administration determine 
that additional research and development is necessary and would 
substantially contribute to the development of quiet aircraft 
technology, then the agencies shall conduct an appropriate 
research program in consultation with the entities listed in 
subsection (c) to develop safe, effective, and economical noise 
reduction technology (including technology that can be applied 
to existing propeller driven aircraft and rotorcraft) that 
would result in aircraft that operate at substantially reduced 
levels of noise to reduce the impact of such aircraft and 
rotorcraft on the resources of national parks and other areas.

Sec. 47510. Tradeoff allowance

  Notwithstanding another law or a regulation prescribed or 
order issued under that law, the tradeoff provisions contained 
in appendix C of part 36 of title 14, Code of Federal 
Regulations, apply in deciding whether an aircraft complies 
with subpart I of part 91 of title 14.

             SUBCHAPTER II--NATIONAL AVIATION NOISE POLICY

Sec. 47521. Findings

  Congress finds that--
          (1) * * *
          * * * * * * *
          (8) a precondition to the establishment and 
        collection of a passenger facility fee is the 
        prescribing by the [Secretary of Transportation] 
        Federal Aviation Administration of a regulation 
        establishing procedures for reviewing airport noise and 
        access restrictions on operations of stage 2 and stage 
        3 aircraft.

Sec. 47522. Definitions

  In this subchapter--
          (1) ``air carrier'', ``air transportation'', and 
        ``United States'' have the same meanings given those 
        terms in section 40102(a) of this title;
          (2) ``stage 3 noise levels'' means the stage 3 noise 
        levels in part 36 of title 14, Code of Federal 
        Regulations, in effect on November 5, 1990.

Sec. 47523. National aviation noise policy

  (a) General Requirements.--Not later than July 1, 1991, the 
[Secretary of Transportation] Federal Aviation Administration 
shall establish by regulation a national aviation noise policy 
that considers this subchapter, including the phaseout and 
nonaddition of stage 2 aircraft as provided in this subchapter 
and dates for carrying out that policy and reporting 
requirements consistent with this subchapter and law existing 
as of November 5, 1990.
          * * * * * * *

Sec. 47524. Airport noise and access restriction review program

  (a) * * *
          * * * * * * *
  (c) Stage 3 Aircraft.--(1) Except as provided in subsection 
(d) of this section, an airport noise or access restriction on 
the operation of stage 3 aircraft not in effect on October 1, 
1990, may become effective only if the restriction has been 
agreed to by the airport proprietor and all aircraft operators 
or has been submitted to and approved by the [Secretary of 
Transportation] Federal Aviation Administration after an 
airport or aircraft operator's request for approval as provided 
by the program established under this section. Restrictions to 
which this paragraph applies include--
          (A) a restriction on noise levels generated on either 
        a single event or cumulative basis;
          (B) a restriction on the total number of stage 3 
        aircraft operations;
          (C) a noise budget or noise allocation program that 
        would include stage 3 aircraft;
          (D) a restriction on hours of operations; and
          (E) any other restriction on stage 3 aircraft.
  (2) Not later than 180 days after the [Secretary] 
Administration receives an airport or aircraft operator's 
request for approval of an airport noise or access restriction 
on the operation of a stage 3 aircraft, the [Secretary] 
Administration shall approve or disapprove the restriction. The 
[Secretary] Administration may approve the restriction only if 
the [Secretary] Administration finds on the basis of 
substantial evidence that--
          (A) the restriction is reasonable, nonarbitrary, and 
        nondiscriminatory;
          (B) the restriction does not create an unreasonable 
        burden on interstate or foreign commerce;
          (C) the restriction is not inconsistent with 
        maintaining the safe and efficient use of the navigable 
        airspace;
          (D) the restriction does not conflict with a law or 
        regulation of the United States;
          (E) an adequate opportunity has been provided for 
        public comment on the restriction; and
          (F) the restriction does not create an unreasonable 
        burden on the national aviation system.
  (3) Paragraphs (1) and (2) of this subsection do not apply if 
the [Administrator of the] Federal Aviation Administration, 
before November 5, 1990, has formed a working group (outside 
the process established by part 150 of title 14, Code of 
Federal Regulations) with a local airport operator to examine 
the noise impact of air traffic control procedure changes at 
the airport. However, if an agreement on noise reductions at 
that airport is made between the airport proprietor and one or 
more air carriers or foreign air carriers that constitute a 
majority of the carrier use of the airport, this paragraph 
applies only to a local action to enforce the agreement.
  (4) The [Secretary] Administration may reevaluate an airport 
noise or access restriction previously agreed to or approved 
under this subsection on request of an aircraft operator able 
to demonstrate to the satisfaction of the [Secretary] 
Administration that there has been a change in the noise 
environment of the affected airport that justifies a 
reevaluation. The [Secretary] Administration shall establish by 
regulation procedures for conducting a reevaluation. A 
reevaluation--
          (A) shall be based on the criteria in paragraph (2) 
        of this subsection; and
          (B) may be conducted only after 2 years after a 
        decision under paragraph (2) of this subsection has 
        been made.
          * * * * * * *
  (e) Grant Limitations.--Beginning on the 91st day after the 
[Secretary] Administration prescribes a regulation under 
subsection (a) of this section, a sponsor of a facility 
operating under an airport noise or access restriction on the 
operation of stage 3 aircraft that first became effective after 
October 1, 1990, is eligible for a grant under section 47104 of 
this title and is eligible to impose a passenger facility fee 
under section 40117 of this title only if the restriction has 
been--
          (1) agreed to by the airport proprietor and aircraft 
        operators;
          (2) approved by the [Secretary] Administration as 
        required by subsection (c)(1) of this section; or
          (3) rescinded.

Sec. 47525. Decision about airport noise and access restrictions on 
                    certain stage 2 aircraft

  The [Secretary of Transportation] Federal Aviation 
Administration shall conduct a study and decide on the 
application of section 47524(a)-(d) of this title to airport 
noise and access restrictions on the operation of stage 2 
aircraft with a maximum weight of not more than 75,000 pounds. 
In making the decision, the [Secretary] Administration shall 
consider--
          (1) noise levels produced by those aircraft relative 
        to other aircraft;
          (2) the benefits to general aviation and the need for 
        efficiency in the national air transportation system;
          (3) the differences in the nature of operations at 
        airports and the areas immediately surrounding the 
        airports;
          (4) international standards and agreements on 
        aircraft noise; and
          (5) other factors the [Secretary] Administration 
        considers necessary.

Sec. 47526. Limitations for noncomplying airport noise and access 
                    restrictions

  Unless the [Secretary of Transportation] Federal Aviation 
Administration is satisfied that an airport is not imposing an 
airport noise or access restriction not in compliance with this 
subchapter, the airport may not--
          (1) receive money under subchapter I of chapter 471 
        of this title; or
          (2) impose a passenger facility fee under section 
        40117 of this title.

Sec. 47527. Liability of the United States Government for noise damages

  When a proposed airport noise or access restriction is 
disapproved under this subchapter, the United States Government 
shall assume liability for noise damages only to the extent 
that a taking has occurred as a direct result of the 
disapproval. The United States Court of Federal Claims has 
exclusive jurisdiction of a civil action under this section.

Sec. 47528. Prohibition on operating certain aircraft not complying 
                    with stage 3 noise levels

  (a) Prohibition.--Except as provided in subsection (b) of 
this section and section 47530 of this title, a person may 
operate after December 31, 1999, a civil subsonic turbojet with 
a maximum weight of more than 75,000 pounds to or from an 
airport in the United States only if the [Secretary of 
Transportation] Federal Aviation Administration finds that the 
aircraft complies with the stage 3 noise levels.
  (b) Waivers.--(1) If, not later than July 1, 1999, at least 
85 percent of the aircraft used by an air carrier to provide 
air transportation comply with the stage 3 noise levels, the 
carrier may apply for a waiver of subsection (a) of this 
section for the remaining aircraft used by the carrier to 
provide air transportation. The application must be filed with 
the [Secretary] Administration not later than January 1, 1999, 
and must include a plan with firm orders for making all 
aircraft used by the carrier to provide air transportation 
comply with the noise levels not later than December 31, 2003.
  (2) The [Secretary] Administration may grant a waiver under 
this subsection if the [Secretary] Administration finds it 
would be in the public interest. In making the finding, the 
[Secretary] Administration shall consider the effect of 
granting the waiver on competition in the air carrier industry 
and on small community air service.
  (3) A waiver granted under this subsection may not permit the 
operation of stage 2 aircraft in the United States after 
December 31, 2003.
  (c) Schedule for Phased-In Compliance.--The [Secretary] 
Administration shall establish by regulation a schedule for 
phased-in compliance with subsection (a) of this section. The 
phase-in period shall begin on November 5, 1990, and end before 
December 31, 1999. The regulations shall establish interim 
compliance dates. The schedule for phased-in compliance shall 
be based on--
          (1) a detailed economic analysis of the impact of the 
        phaseout date for stage 2 aircraft on competition in 
        the airline industry, including--
                  (A) the ability of air carriers to achieve 
                capacity growth consistent with the projected 
                rate of growth for the airline industry;
                  (B) the impact of competition in the airline 
                and air cargo industries;
                  (C) the impact on nonhub and small community 
                air service; and
                  (D) the impact on new entry into the airline 
                industry; and
          (2) an analysis of the impact of aircraft noise on 
        individuals residing near airports.
  (d) Annual Report.--Beginning with calendar year 1992--
          (1) each air carrier shall submit to the [Secretary] 
        Administration an annual report on the progress the 
        carrier is making toward complying with the 
        requirements of this section and regulations prescribed 
        under this section; and
          (2) the [Secretary] Administration shall submit to 
        Congress an annual report on the progress being made 
        toward that compliance.
          * * * * * * *

Sec. 47529. Nonaddition rule

  (a) * * *
  (b) Exemptions.--The [Secretary of Transportation] Federal 
Aviation Administration may provide an exemption from 
subsection (a) of this section to permit a person to obtain 
modifications to an aircraft to meet the stage 3 noise levels.
          * * * * * * *

Sec. 47532. Judicial review

  An action taken by the [Secretary of Transportation] Federal 
Aviation Administration under any of sections 47528-47531 of 
this title is subject to judicial review as provided under 
section 46110 of this title.

Sec. 47533. Relationship to other laws

  Except as provided by section 47524 of this title, this 
subchapter does not affect--
          (1) law in effect on November 5, 1990, on airport 
        noise or access restrictions by local authorities;
          (2) any proposed airport noise or access restriction 
        at a general aviation airport if the airport proprietor 
        has formally initiated a regulatory or legislative 
        process before October 2, 1990; or
          (3) the authority of the [Secretary of 
        Transportation] Federal Aviation Administration to seek 
        and obtain legal remedies the [Secretary] 
        Administration considers appropriate, including 
        injunctive relief.

                           PART C--FINANCING

       CHAPTER 481--AIRPORT AND AIRWAY TRUST FUND AUTHORIZATIONS

Sec.
48101.  Air navigation facilities.
     * * * * * * *
[48109.  Submission of budget information and legislative 
          recommendations and comments.]
48109.  Budget information and legislative recommendations and comments.
48110.  Facilities for advanced training of maintenance technicians for 
          air carrier aircraft.
48111.  Budgetary treatment of Airport and Airway Trust Fund.
48112.  Safeguards against deficit spending.

Sec. 48101. Air navigation facilities

  (a) General Authorization of Appropriations.--Not more than a 
total of the following amounts may be appropriated to the 
[Secretary of Transportation] Federal Aviation Administration 
out of the Airport and Airway Trust Fund established under 
section 9502 of the Internal Revenue Code of 1986 (26 U.S.C. 
9502) to acquire, establish, and improve air navigation 
facilities under section 44502(a)(1)(A) of this title:
          (1) For the fiscal years ending September 30, 1991-
        1993, $8,200,000,000.
          (2) For the fiscal years ending September 30, 1991-
        1994, $10,724,000,000.
          (3) For the fiscal years ending September 30, 1991-
        1995, $13,394,000,000.
          (4) For the fiscal years ending September 30, 1991-
        1996, $16,129,000,000.
  (b) Major Airway Capital Investment Plan Changes.--If the 
[Secretary] Administration decides that it is necessary to 
augment or substantially modify elements of the Airway Capital 
Investment Plan referred to in section 44501(b) of this title 
(including a decision that it is necessary to establish more 
than 23 area control facilities), not more than $100,000,000 
may be appropriated to the [Secretary] Administration out of 
the Fund for the fiscal year ending September 30, 1994, to 
carry out the augmentation or modification.
  (c) Availability of Amounts.--Amounts appropriated under this 
section remain available until expended.

Sec. 48102. Research and development

  (a) Authorization of Appropriations.--Not more than the 
following amounts may be appropriated to the [Secretary of 
Transportation] Federal Aviation Administration out of the 
Airport and Airway Trust Fund established under section 9502 of 
the Internal Revenue Code of 1986 (26 U.S.C. 9502) to carry out 
sections 44504, 44505, 44507, 44509, and 44511-44513 of this 
title:
          (1) * * *
          * * * * * * *
  (b) Availability for Research.--(1) At least 15 percent of 
the amount appropriated under subsection (a) of this section 
shall be for long-term research projects.
  (2) At least 3 percent of the amount appropriated under 
subsection (a) of this section shall be available to the 
[Administrator of the] Federal Aviation Administration to make 
grants under section 44511 of this title.
  (c) Transfers Between Categories.--(1) Not more than 10 
percent of the net amount authorized for a category of projects 
and activities in a fiscal year under subsection (a) of this 
section may be transferred to or from that category in that 
fiscal year.
  (2) The [Secretary] Administration may transfer more than 10 
percent of an authorized amount to or from a category only 
after--
          (A) submitting a written explanation of the proposed 
        transfer to the Committees on Science, Space, and 
        Technology and Appropriations of the House of 
        Representatives and the Committees on Commerce, 
        Science, and Transportation and Appropriations of the 
        Senate; and
          (B) 30 days have passed after the explanation is 
        submitted or each Committee notifies the [Secretary] 
        Administration in writing that it does not object to 
        the proposed transfer.
  (d) Airport Capacity Research and Development.--(1) Of the 
amounts made available under subsection (a) of this section, at 
least $25,000,000 may be appropriated each fiscal year for 
research and development under section 44505 (a) and (c) of 
this title on preserving and enhancing airport capacity, 
including research and development on improvements to airport 
design standards, maintenance, safety, operations, and 
environmental concerns.
  (2) The [Administrator] Administration shall submit to the 
Committees on Science, Space, and Technology and [Public Works 
and Transportation] Transportation and Infrastructure of the 
House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report on 
expenditures made under paragraph (1) of this subsection for 
each fiscal year. The report shall be submitted not later than 
60 days after the end of the fiscal year.
  (e) Air Traffic Controller Performance Research.--Necessary 
amounts may be appropriated to the [Secretary] Administration 
out of amounts in the Fund available for research and 
development to conduct research under section 44506 (a) and (b) 
of this title.
  (f) Availability of Amounts.--Amounts appropriated under 
subsection (a) of this section remain available until expended.

Sec. 48103. Airport planning and development and noise compatibility 
                    planning and programs

  The total amounts which shall be available after September 
30, 1981, to the [Secretary of Transportation] Federal Aviation 
Administration out of the Airport and Airway Trust Fund 
established under section 9502 of the Internal Revenue Code of 
1986 (26 U.S.C. 9502) to make grants for airport planning and 
airport development under section 47104 of this title, airport 
noise compatibility planning under section 47505(a)(2) of this 
title, and carrying out noise compatibility programs under 
section 47504(c) of this title shall be $17,583,500,000 for 
fiscal years ending before October 1, 1994, $19,744,500,000 for 
fiscal years ending before October 1, 1995, and $21,958,500,000 
for fiscal years ending before October 1, 1996.

Sec. 48104. Certain direct costs and joint air navigation services

  (a) Authorization of Appropriations.--Except as provided in 
this section, the balance of the money available in the Airport 
and Airway Trust Fund established under section 9502 of the 
Internal Revenue Code of 1986 (26 U.S.C. 9502) may be 
appropriated to the [Secretary of Transportation] Federal 
Aviation Administration out of the Fund for--
          (1) direct costs the [Secretary] Administration 
        incurs to flight check, operate, and maintain air 
        navigation facilities referred to in section 
        44502(a)(1)(A) of this title safely and efficiently; 
        and
          (2) the costs of services provided under 
        international agreements related to the joint financing 
        of air navigation services assessed against the United 
        States Government.
          * * * * * * *

Sec. 48105. Weather reporting services

  To reimburse the Secretary of Commerce for the cost incurred 
by the National Oceanic and Atmospheric Administration of 
providing weather reporting services to the Federal Aviation 
Administration, the [Secretary of Transportation] Federal 
Aviation Administration may expend from amounts available under 
section 48104 of this title not more than the following 
amounts:
          (1) for the fiscal year ending September 30, 1993, 
        $35,596,000.
          (2) for the fiscal year ending September 30, 1994, 
        $37,800,000.
          (3) for the fiscal year ending September 30, 1995, 
        $39,000,000.

Sec. 48106. Airway science curriculum grants

  Amounts are available from the Airport and Airway Trust Fund 
established under section 9502 of the Internal Revenue Code of 
1986 (26 U.S.C. 9502) to carry out section 44510 of this title. 
The amounts remain available until expended.

Sec. 48107. Civil aviation security research and development

  After the review under section 44912(b) of this title is 
completed, necessary amounts may be appropriated to the 
[Secretary of Transportation] Federal Aviation Administration 
out of the Airport and Airway Trust Fund established under 
section 9502 of the Internal Revenue Code of 1986 (26 U.S.C. 
9502) to make grants under section 44912(a)(4)(A).

Sec. 48108. Availability and uses of amounts

  (a) Availability of Amounts.--Amounts equal to the amounts 
authorized under sections 48101-48105 of this title remain in 
the Airport and Airway Trust Fund established under section 
9502 of the Internal Revenue Code of 1986 (26 U.S.C. 9502) 
until appropriated for the purposes of sections 48101-48105.
  (b) Limitations on Uses.--(1) Amounts in the Fund may be 
appropriated only to carry out a program or activity referred 
to in this chapter.
  (2) Amounts in the Fund may be appropriated for 
administrative expenses of the [Department of Transportation] 
Federal Aviation Administration or a component of the 
Department only to the extent authorized by section 48104 of 
this title.
  (c) Limitation on Obligating or Expending Amounts.--In a 
fiscal year beginning after September 30, 1996, the [Secretary 
of Transportation] Federal Aviation Administration may obligate 
or expend an amount appropriated out of the Fund under section 
48104 of this title only if a law expressly amends section 
48104.

[Sec. 48109. Submission of budget information and legislative 
                    recommendations and comments

  [When the Administrator of the Federal Aviation 
Administration submits to the Secretary of Transportation, the 
President, or the Director of the Office of Management and 
Budget any budget information, legislative recommendation, or 
comment on legislation about amounts authorized in section 
48101 or 48102 of this title, the Administrator concurrently 
shall submit a copy of the information, recommendation, or 
comment to the Speaker of the House of Representatives, the 
Committees on Public Works and Transportation and 
Appropriations of the House, the President of the Senate, and 
the Committees on Commerce, Science, and Transportation and 
Appropriations of the Senate.]

Sec. 48109. Budget information and legislative recommendations and 
                    comments

  (a) Preparation.--Subject to approval of the Federal Aviation 
Board, the Chief Executive Officer shall prepare an annual 
budget for the Administration.
  (b) Submission of Budget to DOT.--
          (1) In general.--At the same time that agencies of 
        the Department of Transportation having jurisdiction 
        over other modes of transportation are required to 
        submit their budgets to the Secretary of 
        Transportation, the Administration shall submit to the 
        Secretary the budget prepared by the Administration and 
        approved by the Board. The Secretary shall review the 
        budget and may recommend to the Administration 
        modifications in the budget necessary to ensure that 
        the budget is consistent with the needs of the national 
        transportation system and the Secretary's aviation 
        responsibilities. The Administration may modify the 
        budget to adopt any recommendation made by the 
        Secretary.
          (2) Opportunity for comment.--At least 30 days before 
        submitting a budget to the Secretary under paragraph 
        (1), the Administration shall submit a draft of the 
        budget to the Management Advisory Committee established 
        by section 1315 for comment.
  (c) Submission of Budget to Congress.--
          (1) In general.--When the Board submits to the 
        President or the Director of the Office of Management 
        and Budget any budget information, legislative 
        recommendation, or comment on legislation about amounts 
        authorized in section 48101 or section 48102, the Board 
        concurrently shall submit a copy of the information, 
        recommendation, or comment to the Speaker of the House 
        of Representatives, the Committees on Transportation 
        and Infrastructure and Appropriations of the House of 
        Representatives, the President of the Senate, and the 
        Committees on Commerce, Science, and Transportation and 
        Appropriations of the Senate.
          (2) Special rule with respect to annual budgets.--The 
        annual budget of the Administration submitted to 
        Congress shall include--
                  (A) budget requests and Airport and Airway 
                Trust Fund estimates for the ensuing 4 fiscal 
                years;
                  (B) a numerical ranking, by degree of 
                importance to the national airspace system, of 
                the Administration's requests for funding of 
                air traffic control modernization projects 
                under section 48101;
                  (C) the total number of man-years of direct 
                effort the Administration estimates it will use 
                under support service contracts (including 
                professional, technical, engineering, site 
                preparation, and installation and other 
                services comparable to those performed by 
                Government employees, but not including 
                maintenance as part of a supply contract, 
                janitorial, research and development, or 
                construction services or services incidental to 
                supply contracts) during the fiscal year for 
                which the budget is being submitted;
                  (D) any modifications made by the 
                Administration under subsection (b) with 
                respect to the budget; and
                  (E) if the Administration does not adopt a 
                recommendation made by the Secretary under 
                subsection (b), a description of the 
                recommendation and the reasons for not adopting 
                the recommendation.
        Subparagraph (C) shall take effect with the budget 
        submission for fiscal year 1997. The estimate under 
        subparagraph (C) for such budget submission shall 
        include for comparison the estimated total number of 
        man-years of direct effort the Administration used 
        under such support service contracts in each of fiscal 
        years 1992 and 1995.

Sec. 48110. Facilities for advanced training of maintenance technicians 
                    for air carrier aircraft

  For the fiscal years ending September 30, 1993-1995, amounts 
necessary to carry out section 44515 of this title may be 
appropriated to the [Secretary of Transportation] Federal 
Aviation Administration out of the Airport and Airway Trust 
Fund established under section 9502 of the Internal Revenue 
Code of 1986 (26 U.S.C. 9502). The amounts remain available 
until expended.

Sec. 48111. Budgetary treatment of Airport and Airway Trust Fund

  The receipts and disbursements of the Airport and Airway 
Trust Fund established by section 9502 of the Internal Revenue 
Code of 1986 (26 U.S.C. 9502)--
          (1) shall not be included in the totals of--
                  (A) the budget of the United States 
                Government as submitted by the President, or
                  (B) the congressional budget (including 
                allocations of budget authority and outlays 
                provided therein),
          (2) shall be exempt from any general budget 
        limitation imposed by statute on expenditures and net 
        lending (budget outlays) of the United States 
        Government, and
          (3) shall be exempt from any order issued under part 
        C of the Balanced Budget and Emergency Deficit Control 
        Act of 1985.

Sec. 48112. Safeguards against deficit spending

  (a) Estimates of Unfunded Aviation Authorizations and Net 
Aviation Receipts.--Not later than March 31 of each year, the 
Federal Aviation Administration, in consultation with the 
Secretary of the Treasury, shall estimate--
          (1) the amount which would (but for this section) be 
        the unfunded aviation authorizations at the close of 
        the first fiscal year that begins after that March 31, 
        and
          (2) the net aviation receipts at the close of such 
        fiscal year.
  (b) Procedure of Excess Unfunded Aviation Authorizations.--If 
the Administration determines for any fiscal year that the 
amount described in subsection (a)(1) exceeds the amount 
described in subsection (a)(2), the Board shall determine the 
amount of such excess.
  (c) Adjustment of Authorizations if Unfunded Authorizations 
Exceed Receipts.--
          (1) Determination of percentage.--If the 
        Administration determines that there is an excess 
        referred to in subsection (b) for a fiscal year, the 
        Administration shall determine the percentage which--
                  (A) such excess, is of
                  (B) the total of the amounts authorized to be 
                appropriated from the Airport and Airway Trust 
                Fund established by section 9502 of the 
                Internal Revenue Code of 1986 (26 U.S.C. 9502) 
                for the next fiscal year.
          (2) Adjustment of authorizations.--If the 
        Administration determines a percentage under paragraph 
        (1), each amount authorized to be appropriated from the 
        Airport and Airway Trust Fund for the next fiscal year 
        shall be reduced by such percentage.
  (d) Availability of Amounts Previously Withheld.--
          (1) Adjustment of authorizations.--If, after a 
        reduction has been made under subsection (c)(2), the 
        Administration determines that the amount described in 
        subsection (a)(1) does not exceed the amount described 
        in subsection (a)(2) or that the excess referred to in 
        subsection (b) is less than the amount previously 
        determined, each amount authorized to be appropriated 
        that was reduced under subsection (c)(2) shall be 
        increased, by an equal percentage, to the extent the 
        Administration determines that it may be so increased 
        without causing the amount described in subsection 
        (a)(1) to exceed the amount described in subsection 
        (a)(2) (but not by more than the amount of the 
        reduction).
          (2) Apportionment.--The Administration shall 
        apportion amounts made available for apportionment by 
        paragraph (1).
          (3) Period of availability.--Any funds apportioned 
        under paragraph (2) shall remain available for the 
        period for which they would be available if such 
        apportionment took effect with the fiscal year in which 
        they are apportioned under paragraph (2).
  (e) Reports.--Any estimate under subsection (a) and any 
determination under subsection (b), (c), or (d) shall be 
reported by the Administration to Congress.
  (f) Definitions.--In this section, the following definitions 
apply:
          (1) Net aviation receipts.--The term ``net aviation 
        receipts'' means, with respect to any period, the 
        excess of--
                  (A) the receipts (including interest) of the 
                Airport and Airway Trust Fund during such 
                period, over
                  (B) the amounts to be transferred during such 
                period from the Airport and Airway Trust Fund 
                under section 9502(d) of the Internal Revenue 
                Code of 1986 (other than paragraph (1) 
                thereof).
          (2) Unfunded aviation authorizations.--The term 
        ``unfunded aviation authorization'' means, at any time, 
        the excess (if any) of--
                  (A) the total amount authorized to be 
                appropriated from the Airport and Airway Trust 
                Fund which has not been appropriated, over
                  (B) the amount available in the Airport and 
                Airway Trust Fund at such time to make such 
                appropriation (after all other unliquidated 
                obligations at such time which are payable from 
                the Airport and Airway Trust Fund have been 
                liquidated).

                         PART D--MISCELLANEOUS

                 CHAPTER 491--BUY-AMERICAN PREFERENCES

          * * * * * * *

Sec. 49101. Buying goods produced in the United States

  (a) Preference.--The [Secretary of Transportation] Federal 
Aviation Administration may obligate an amount that may be 
appropriated to carry out section 106(k), 44502(a)(2), or 
44509, subchapter I of chapter 471 (except sections 47106(d) 
and 47127), or chapter 481 (except sections 48102(e), 48106, 
48107, and 48110) of this title for a project only if steel and 
manufactured goods used in the project are produced in the 
United States.
  (b) Waiver.--The [Secretary] Administration may waive 
subsection (a) of this section if the [Secretary] 
Administration finds that--
          (1) * * *
          * * * * * * *

Sec. 49103. Contract preference for domestic firms

  (a) Definitions.--In this section--
          (1) ``domestic firm'' means a business entity 
        incorporated, and conducting business, in the United 
        States.
          (2) ``foreign firm'' means a business entity not 
        described in clause (1) of this subsection.
  (b) Preference.--Subject to subsections (c) and (d) of this 
section, the [Administrator of the] Federal Aviation 
Administration may make, with a domestic firm, a contract 
related to a grant made under section 44511, 44512, or 44513 of 
this title that, under competitive procedures, would be made 
with a foreign firm, if--
          (1) the [Administrator] Administration decides, and 
        the Secretary of Commerce and the United States Trade 
        Representative concur, that the public interest 
        requires making the contract with the domestic firm, 
        considering United States international obligations and 
        trade relations;
          (2) the difference between the bids submitted by the 
        foreign firm and the domestic firm is not more than 6 
        percent;
          (3) the final product of the domestic firm will be 
        assembled completely in the United States; and
          (4) at least 51 percent of the final product of the 
        domestic firm will be produced in the United States.
  (c) Nonapplication.--Subsection (b) of this section does not 
apply if--
          (1) compelling national security considerations 
        require that subsection (b) of this section not apply; 
        or
          (2) the Trade Representative decides that making the 
        contract would violate the General Agreement on Tariffs 
        and Trade or an international agreement to which the 
        United States is a party.
  (d) Application to Certain Grants.--This section applies only 
to a contract related to a grant made under section 44511, 
44512, or 44513 of this title for which--
          (1) an amount is authorized by section 48102(a), (b), 
        or (d) of this title to be made available for the 
        fiscal years ending September 30, 1991, and September 
        30, 1992; and
          (2) a solicitation for bid is issued after November 
        5, 1990.
  (e) Report.--The [Administrator] Administration shall submit 
a report to Congress on--
          (1) contracts to which this section applies that are 
        made with foreign firms in the fiscal years ending 
        September 30, 1991, and September 30, 1992;
          (2) the number of contracts that meet the 
        requirements of subsection (b) of this section, but 
        that the Trade Representative decides would violate the 
        General Agreement on Tariffs and Trade or an 
        international agreement to which the United States is a 
        party; and
          (3) the number of contracts made under this section.

Sec. 49104. Restriction on airport projects using products or services 
                    of foreign countries denying fair market 
                    opportunities

  (a) * * *
  (b) Limitation on Use of Available Amounts.--(1) * * *
  (2) Paragraph (1) of this subsection does not apply when the 
[Secretary of Transportation] Federal Aviation Administration 
decides that--
          (A) applying paragraph (1) to the product, service, 
        or project is not in the public interest;
          (B) a product or service of the same class or type 
        and of satisfactory quality is not produced or offered 
        in the United States, or in a foreign country not 
        listed under subsection (d)(1) of this section, in a 
        sufficient and reasonably available amount; and
          (C) the project cost will increase by more than 20 
        percent if the product or service is excluded.
          * * * * * * *

Sec. 49105. Fraudulent use of ``Made in America'' label

  If the [Secretary of Transportation] Federal Aviation 
Administration decides that a person intentionally affixed a 
``Made in America'' label to goods sold in or shipped to the 
United States that are not made in the United States, the 
[Secretary] Administration shall declare the person ineligible, 
for not less than 3 nor more than 5 years, to receive a 
contract or grant from the United States Government related to 
a contract made under section 106(k), 44502(a)(2), or 44509, 
subchapter I of chapter 471 (except sections 47106(d) and 
47127), or chapter 481 (except sections 48102(e), 48106, 48107, 
and 48110) of this title or subtitle B of title IX of the 
Omnibus Budget Reconciliation Act of 1990 (Public Law 101-508, 
104 Stat. 1388-353). The [Secretary] Administration may bring a 
civil action to enforce this section in any district court of 
the United States.
          * * * * * * *

              SUBTITLE IX--COMMERCIAL SPACE TRANSPORTATION

          * * * * * * *

            CHAPTER 701--COMMERCIAL SPACE LAUNCH ACTIVITIES

          * * * * * * *

Sec. 70101. Findings and purposes

  (a) * * *
  (b) Purposes.--The purposes of this chapter are--
          (1) to promote economic growth and entrepreneurial 
        activity through use of the space environment for 
        peaceful purposes;
          (2) to encourage the United States private sector to 
        provide launch vehicles and associated services by--
                  (A) simplifying and expediting the issuance 
                and transfer of commercial launch licenses; and
                  (B) facilitating and encouraging the use of 
                Government-developed space technology;
          (3) to provide that the [Secretary of Transportation] 
        Federal Aviation Administration is to oversee and 
        coordinate the conduct of commercial launch operations, 
        issue and transfer commercial launch licenses 
        authorizing those operations, and protect the public 
        health and safety, safety of property, and national 
        security and foreign policy interests of the United 
        States; and
          (4) to facilitate the strengthening and expansion of 
        the United States space transportation infrastructure, 
        including the enhancement of United States launch sites 
        and launch-site support facilities, with Government, 
        State, and private sector involvement, to support the 
        full range of United States space-related activities.

Sec. 70102. Definitions

  In this chapter--
          (1) ``citizen of the United States'' means--
                  (A) an individual who is a citizen of the 
                United States;
                  (B) an entity organized or existing under the 
                laws of the United States or a State; or
                  (C) an entity organized or existing under the 
                laws of a foreign country if the controlling 
                interest (as defined by the [Secretary of 
                Transportation] Federal Aviation 
                Administration) is held by an individual or 
                entity described in subclause (A) or (B) of 
                this clause.
          * * * * * * *
          (6) ``launch site'' means the location on Earth from 
        which a launch takes place (as defined in a license the 
        [Secretary] Administration issues or transfers under 
        this chapter) and necessary facilities.
          * * * * * * *

Sec. 70103. General authority

  (a) General.--The [Secretary of Transportation] Federal 
Aviation Administration shall carry out this chapter.
  (b) Facilitating Commercial Launches.--In carrying out this 
chapter, the [Secretary] Administration shall--
          (1) encourage, facilitate, and promote commercial 
        space launches by the private sector; and
          (2) take actions to facilitate private sector 
        involvement in commercial space transportation 
        activity, and to promote public-private partnerships 
        involving the United States Government, State 
        governments, and the private sector to build, expand, 
        modernize, or operate a space launch infrastructure.
  (c) Executive Agency Assistance.--When necessary, the head of 
an executive agency shall assist the [Secretary] Administration 
in carrying out this chapter.

Sec. 70104. Restrictions on launches and operations

  (a) * * *
          * * * * * * *
  (c) Preventing Launches.--The [Secretary of Transportation] 
Federal Aviation Administration shall establish whether all 
required licenses, authorizations, and permits required for a 
payload have been obtained. If no license, authorization, or 
permit is required, the [Secretary] Administration may prevent 
the launch if the [Secretary] Administration decides the launch 
would jeopardize the public health and safety, safety of 
property, or national security or foreign policy interest of 
the United States.

Sec. 70105. License applications and requirements

  (a) Applications.--A person may apply to the [Secretary of 
Transportation] Federal Aviation Administration for a license 
or transfer of a license under this chapter in the form and way 
the [Secretary] Administration prescribes. Consistent with the 
public health and safety, safety of property, and national 
security and foreign policy interests of the United States, the 
[Secretary] Administration, not later than 180 days after 
receiving an application, shall issue or transfer a license if 
the [Secretary] Administration decides in writing that the 
applicant complies, and will continue to comply, with this 
chapter and regulations prescribed under this chapter. The 
[Secretary] Administration shall inform the applicant of any 
pending issue and action required to resolve the issue if the 
[Secretary] Administration has not made a decision not later 
than 120 days after receiving an application.
  (b) Requirements.--(1) Except as provided in this subsection, 
all requirements of the laws of the United States applicable to 
the launch of a launch vehicle or the operation of a launch 
site are requirements for a license under this chapter.
  (2) The [Secretary] Administration may prescribe--
          (A) any term necessary to ensure compliance with this 
        chapter, including on-site verification that a launch 
        or operation complies with representations stated in 
        the application;
          (B) an additional requirement necessary to protect 
        the public health and safety, safety of property, 
        national security interests, and foreign policy 
        interests of the United States; and
          (C) by regulation that a requirement of a law of the 
        United States not be a requirement for a license if the 
        [Secretary] Administration, after consulting with the 
        head of the appropriate executive agency, decides that 
        the requirement is not necessary to protect the public 
        health and safety, safety of property, and national 
        security and foreign policy interests of the United 
        States.
  (3) The [Secretary] Administration may waive a requirement 
for an individual applicant if the [Secretary] Administration 
decides that the waiver is in the public interest and will not 
jeopardize the public health and safety, safety of property, 
and national security and foreign policy interests of the 
United States.
  (c) Procedures and Timetables.--The [Secretary] 
Administration shall establish procedures and timetables that 
expedite review of a license application and reduce the 
regulatory burden for an applicant.

Sec. 70106. Monitoring activities

  (a) General Requirements.--A licensee under this chapter must 
allow the [Secretary of Transportation] Federal Aviation 
Administration to place an officer or employee of the United 
States Government or another individual as an observer at a 
launch site the licensee uses, at a production facility or 
assembly site a contractor of the licensee uses to produce or 
assemble a launch vehicle, or at a site at which a payload is 
integrated with a launch vehicle. The observer will monitor the 
activity of the licensee or contractor at the time and to the 
extent the [Secretary] Administration considers reasonable to 
ensure compliance with the license or to carry out the duties 
of the [Secretary] Administration under section 70104(c) of 
this title. A licensee must cooperate with an observer carrying 
out this subsection.
  (b) Contracts.--To the extent provided in advance in an 
appropriation law, the [Secretary] Administration may make a 
contract with a person to carry out subsection (a) of this 
section.

Sec. 70107. Effective periods, and modifications, suspensions, and 
                    revocations, of licenses

  (a) Effective Periods of Licenses.--The [Secretary of 
Transportation] Federal Aviation Administration shall specify 
the period for which a license issued or transferred under this 
chapter is in effect.
  (b) Modifications.--On the initiative of the [Secretary] 
Administration or on application of the licensee, the 
[Secretary] Administration may modify a license issued or 
transferred under this chapter if the [Secretary] 
Administration decides the modification will comply with this 
chapter.
  (c) Suspensions and Revocations.--The [Secretary] 
Administration may suspend or revoke a license if the 
[Secretary] Administration decides that--
          (1) the licensee has not complied substantially with 
        a requirement of this chapter or a regulation 
        prescribed under this chapter; or
          (2) the suspension or revocation is necessary to 
        protect the public health and safety, the safety of 
        property, or a national security or foreign policy 
        interest of the United States.
  (d) Effective Periods of Modifications, Suspensions, and 
Revocations.--Unless the [Secretary] Administration specifies 
otherwise, a modification, suspension, or revocation under this 
section takes effect immediately and remains in effect during a 
review under section 70110 of this title.
  (e) Notification.--The [Secretary] Administration shall 
notify the licensee in writing of the decision of the 
[Secretary] Administration under this section and any action 
the [Secretary] Administration takes or proposes to take based 
on the decision.

Sec. 70108. Prohibition, suspension, and end of launches and operation 
                    of launch sites

  (a) General Authority.--The [Secretary of Transportation] 
Federal Aviation Administration may prohibit, suspend, or end 
immediately the launch of a launch vehicle or the operation of 
a launch site licensed under this chapter if the [Secretary] 
Administration decides the launch or operation is detrimental 
to the public health and safety, the safety of property, or a 
national security or foreign policy interest of the United 
States.
  (b) Effective Periods of Orders.--An order under this section 
takes effect immediately and remains in effect during a review 
under section 70110 of this title.

Sec. 70109. Preemption of scheduled launches

  (a) General.--With the cooperation of the Secretary of 
Defense and the Administrator of the National Aeronautics and 
Space Administration, the [Secretary of Transportation] Federal 
Aviation Administration shall act to ensure that a launch of a 
payload is not preempted from access to a United States 
Government launch site or launch property, except for 
imperative national need, when a launch date commitment from 
the Government has been obtained for a launch licensed under 
this chapter. A licensee or transferee preempted from access to 
a launch site or launch property does not have to pay the 
Government any amount for launch services attributable only to 
the scheduled launch prevented by the preemption.
  (b) Imperative National Need Decisions.--In consultation with 
the [Secretary of Transportation] Federal Aviation 
Administration, the Secretary of Defense or the Administrator 
shall decide when an imperative national need requires 
preemption under subsection (a) of this section. That decision 
may not be delegated.
  (c) Reports.--In cooperation with the [Secretary of 
Transportation] Federal Aviation Administration, the Secretary 
of Defense or the Administrator, as appropriate, shall submit 
to Congress not later than 7 days after a decision to preempt 
under subsection (a) of this section, a report that includes an 
explanation of the circumstances justifying the decision and a 
schedule for ensuring the prompt launching of a preempted 
payload.

Sec. 70110. Administrative hearings and judicial review

  (a) Administrative Hearings.--The [Secretary of 
Transportation] Federal Aviation Administration shall provide 
an opportunity for a hearing on the record to--
          (1) an applicant under this chapter, for a decision 
        of the [Secretary] Administration under section 
        70105(a) of this title to issue or transfer a license 
        with terms or deny the issuance or transfer of a 
        license;
          (2) an owner or operator of a payload under this 
        chapter, for a decision of the [Secretary] 
        Administration under section 70104(c) of this title to 
        prevent the launch of the payload; and
          (3) a licensee under this chapter, for a decision of 
        the [Secretary] Administration under--
                  (A) section 70107 (b) or (c) of this title to 
                modify, suspend, or revoke a license; or
                  (B) section 70108(a) of this title to 
                prohibit, suspend, or end a launch or operation 
                of a launch site licensed by the [Secretary] 
                Administration.
  (b) Judicial Review.--A final action of the [Secretary] 
Administration under this chapter is subject to judicial review 
as provided in chapter 7 of title 5.

Sec. 70111. Acquiring United States Government property and services

  (a) General Requirements and Considerations.--(1) The 
[Secretary of Transportation] Federal Aviation Administration 
shall facilitate and encourage the acquisition by the private 
sector and State governments of--
          (A) launch property of the United States Government 
        that is excess or otherwise is not needed for public 
        use; and
          (B) launch services, including utilities, of the 
        Government otherwise not needed for public use.
  (2) In acting under paragraph (1) of this subsection, the 
[Secretary] Administration shall consider the commercial 
availability on reasonable terms of substantially equivalent 
launch property or launch services from a domestic source.
  (b) Price.--(1) In this subsection, ``direct costs'' means 
the actual costs that--
          (A) can be associated unambiguously with a commercial 
        launch effort; and
          (B) the Government would not incur if there were no 
        commercial launch effort.
  (2) In consultation with the [Secretary] Administration, the 
head of the executive agency providing the property or service 
under subsection (a) of this section shall establish the price 
for the property or service. The price for--
          (A) acquiring launch property by sale or transaction 
        instead of sale is the fair market value;
          (B) acquiring launch property (except by sale or 
        transaction instead of sale) is an amount equal to the 
        direct costs, including specific wear and tear and 
        property damage, the Government incurred because of 
        acquisition of the property; and
          (C) launch services is an amount equal to the direct 
        costs, including the basic pay of Government civilian 
        and contractor personnel, the Government incurred 
        because of acquisition of the services.
  (c) Collection by [Secretary] Administration.--The 
[Secretary] Administration may collect a payment under this 
section with the consent of the head of the executive agency 
establishing the price. Amounts collected under this subsection 
shall be deposited in the Treasury. Amounts (except for excess 
launch property) shall be credited to the appropriation from 
which the cost of providing the property or services was paid.
  (d) Collection by Other Governmental Heads.--The head of a 
department, agency, or instrumentality of the Government may 
collect a payment for an activity involved in producing a 
launch vehicle or its payload for launch if the activity was 
agreed to by the owner or manufacturer of the launch vehicle or 
payload.

Sec. 70112. Liability insurance and financial responsibility 
                    requirements

  (a) General Requirements.--(1) When a license is issued or 
transferred under this chapter, the licensee or transferee 
shall obtain liability insurance or demonstrate financial 
responsibility in amounts to compensate for the maximum 
probable loss from claims by--
          (A) a third party for death, bodily injury, or 
        property damage or loss resulting from an activity 
        carried out under the license; and
          (B) the United States Government against a person for 
        damage or loss to Government property resulting from an 
        activity carried out under the license.
  (2) The [Secretary of Transportation] Federal Aviation 
Administration shall determine the amounts required under 
paragraph (1)(A) and (B) of this subsection, after consulting 
with the Administrator of the National Aeronautics and Space 
Administration, the Secretary of the Air Force, and the heads 
of other appropriate executive agencies.
          * * * * * * *
  (b) Reciprocal Waiver of Claims.--(1) A license issued or 
transferred under this chapter shall contain a provision 
requiring the licensee or transferee to make a reciprocal 
waiver of claims with its contractors, subcontractors, and 
customers, and contractors and subcontractors of the customers, 
involved in launch services under which each party to the 
waiver agrees to be responsible for property damage or loss it 
sustains, or for personal injury to, death of, or property 
damage or loss sustained by its own employees resulting from an 
activity carried out under the license.
  (2) The [Secretary of Transportation] Federal Aviation 
Administration shall make, for the Government, executive 
agencies of the Government involved in launch services, and 
contractors and subcontractors involved in launch services, a 
reciprocal waiver of claims with the licensee or transferee, 
contractors, subcontractors, and customers of the licensee or 
transferee, and contractors and subcontractors of the 
customers, involved in launch services under which each party 
to the waiver agrees to be responsible for property damage or 
loss it sustains, or for personal injury to, death of, or 
property damage or loss sustained by its own employees 
resulting from an activity carried out under the license. The 
waiver applies only to the extent that claims are more than the 
amount of insurance or demonstration of financial 
responsibility required under subsection (a)(1)(B) of this 
section. After consulting with the Administrator and the 
Secretary of the Air Force, the [Secretary of Transportation] 
Federal Aviation Administration may waive, for the Government 
and a department, agency, and instrumentality of the 
Government, the right to recover damages for damage or loss to 
Government property to the extent insurance is not available 
because of a policy exclusion the [Secretary of Transportation] 
Federal Aviation Administration decides is usual for the type 
of insurance involved.
  (c) Determination of Maximum Probable Losses.--The [Secretary 
of Transportation] Federal Aviation Administration shall 
determine the maximum probable losses under subsection 
(a)(1)(A) and (B) of this section associated with an activity 
under a license not later than 90 days after a licensee or 
transferee requires a determination and submits all information 
the [Secretary] Administration requires. The [Secretary] 
Administration shall amend the determination as warranted by 
new information.
  (d) Annual Report.--(1) Not later than November 15 of each 
year, the [Secretary of Transportation] Federal Aviation 
Administration shall submit to the Committee on Commerce, 
Science, and Transportation of the Senate and the Committee on 
Science, Space, and Technology of the House of Representatives 
a report on current determinations made under subsection (c) of 
this section related to all issued licenses and the reasons for 
the determinations.
  (2) Not later than May 15 of each year, the [Secretary of 
Transportation] Federal Aviation Administration shall review 
the amounts specified in subsection (a)(3)(A) of this section 
and submit a report to Congress that contains proposed 
adjustments in the amounts to conform with changed liability 
expectations and availability of insurance on the world market. 
The proposed adjustment takes effect 30 days after a report is 
submitted.
  (e) Launches Involving Government Facilities and Personnel.--
The [Secretary of Transportation] Federal Aviation 
Administration shall establish requirements consistent with 
this chapter for proof of financial responsibility and other 
assurances necessary to protect the Government and its 
executive agencies and personnel from liability, death, bodily 
injury, or property damage or loss as a result of a launch or 
operation of a launch site involving a facility or personnel of 
the Government. The [Secretary] Administration may not relieve 
the Government of liability under this subsection for death, 
bodily injury, or property damage or loss resulting from the 
willful misconduct of the Government or its agents.
  (f) Collection and Crediting Payments.--The head of a 
department, agency, or instrumentality of the Government shall 
collect a payment owed for damage or loss to Government 
property under its jurisdiction or control resulting from an 
activity carried out under a license issued or transferred 
under this chapter. The payment shall be credited to the 
current applicable appropriation, fund, or account of the 
department, agency, or instrumentality.

Sec. 70113. Paying claims exceeding liability insurance and financial 
                    responsibility requirements

  (a) General Requirements.--(1) To the extent provided in 
advance in an appropriation law or to the extent additional 
legislative authority is enacted providing for paying claims in 
a compensation plan submitted under subsection (d) of this 
section, the [Secretary of Transportation] Federal Aviation 
Administration shall provide for the payment by the United 
States Government of a successful claim (including reasonable 
litigation or settlement expenses) of a third party against a 
licensee or transferee under this chapter, a contractor, 
subcontractor, or customer of the licensee or transferee, or a 
contractor or subcontractor of a customer, resulting from an 
activity carried out under the license issued or transferred 
under this chapter for death, bodily injury, or property damage 
or loss resulting from an activity carried out under the 
license. However, claims may be paid under this section only to 
the extent the total amount of successful claims related to one 
launch--
          (A) is more than the amount of insurance or 
        demonstration of financial responsibility required 
        under section 70112(a)(1)(A) of this title; and
          (B) is not more than $1,500,000,000 (plus additional 
        amounts necessary to reflect inflation occurring after 
        January 1, 1989) above that insurance or financial 
        responsibility amount.
  (2) The [Secretary] Administration may not provide for paying 
a part of a claim for which death, bodily injury, or property 
damage or loss results from willful misconduct by the licensee 
or transferee. To the extent insurance required under section 
70112(a)(1)(A) of this title is not available to cover a 
successful third party liability claim because of an insurance 
policy exclusion the [Secretary] Administration decides is 
usual for the type of insurance involved, the [Secretary] 
Administration may provide for paying the excluded claims 
without regard to the limitation contained in section 
70112(a)(1).
  (b) Notice, Participation, and Approval.--Before a payment 
under subsection (a) of this section is made--
          (1) notice must be given to the Government of a 
        claim, or a civil action related to the claim, against 
        a party described in subsection (a)(1) of this section 
        for death, bodily injury, or property damage or loss;
          (2) the Government must be given an opportunity to 
        participate or assist in the defense of the claim or 
        action; and
          (3) the [Secretary] Administration must approve any 
        part of a settlement to be paid out of appropriations 
        of the Government.
  (c) Withholding Payments.--The [Secretary] Administration may 
withhold a payment under subsection (a) of this section if the 
[Secretary] Administration certifies that the amount is not 
reasonable. However, the [Secretary] Administration shall deem 
to be reasonable the amount of a claim finally decided by a 
court of competent jurisdiction.
  (d) Surveys, Reports, and Compensation Plans.--(1) If as a 
result of an activity carried out under a license issued or 
transferred under this chapter the total of claims related to 
one launch is likely to be more than the amount of required 
insurance or demonstration of financial responsibility, the 
[Secretary] Administration shall--
          (A) survey the causes and extent of damage; and
          (B) submit expeditiously to Congress a report on the 
        results of the survey.
  (2) Not later than 90 days after a court determination 
indicates that the liability for the total of claims related to 
one launch may be more than the required amount of insurance or 
demonstration of financial responsibility, the President, on 
the recommendation of the [Secretary] Administration, shall 
submit to Congress a compensation plan that--
          (A) outlines the total dollar value of the claims;
          (B) recommends sources of amounts to pay for the 
        claims;
          (C) includes legislative language required to carry 
        out the plan if additional legislative authority is 
        required; and
          (D) for a single event or incident, may not be for 
        more than $1,500,000,000.
          * * * * * * *
  (f) Application.--This section applies to a license issued or 
transferred under this chapter for which the [Secretary] 
Administration receives a complete and valid application not 
later than December 31, 1999.

Sec. 70114. Disclosing information

  The [Secretary of Transportation] Federal Aviation 
Administration, an officer or employee of the United States 
Government, or a person making a contract with the [Secretary] 
Administration under section 70106(b) of this title may 
disclose information under this chapter that qualifies for an 
exemption under section 552(b)(4) of title 5 or is designated 
as confidential by the person or head of the executive agency 
providing the information only if the [Secretary] 
Administration decides withholding the information is contrary 
to the public or national interest.

Sec. 70115. Enforcement and penalty

  (a) Prohibitions.--A person may not violate this chapter, a 
regulation prescribed under this chapter, or any term of a 
license issued or transferred under this chapter.
  (b) General Authority.--(1) In carrying out this chapter, the 
[Secretary of Transportation] Federal Aviation Administration 
may--
          (A) conduct investigations and inquiries;
          (B) administer oaths;
          (C) take affidavits; and
          (D) under lawful process--
                  (i) enter at a reasonable time a launch site, 
                production facility, assembly site of a launch 
                vehicle, or site at which a payload is 
                integrated with a launch vehicle to inspect an 
                object to which this chapter applies or a 
                record or report the [Secretary] Administration 
                requires be made or kept under this chapter; 
                and
                  (ii) seize the object, record, or report when 
                there is probable cause to believe the object, 
                record, or report was used, is being used, or 
                likely will be used in violation of this 
                chapter.
  (2) The [Secretary] Administration may delegate a duty or 
power under this chapter related to enforcement to an officer 
or employee of another executive agency with the consent of the 
head of the agency.
  (c) Civil Penalty.--(1) After notice and an opportunity for a 
hearing on the record, a person the [Secretary] Administration 
finds to have violated subsection (a) of this section is liable 
to the United States Government for a civil penalty of not more 
than $100,000. A separate violation occurs for each day the 
violation continues.
  (2) In conducting a hearing under paragraph (1) of this 
subsection, the [Secretary] Administration may--
          (A) subpena witnesses and records; and
          (B) enforce a subpena in an appropriate district 
        court of the United States.
  (3) The [Secretary] Administration shall impose the civil 
penalty by written notice. The [Secretary] Administration may 
compromise or remit a penalty imposed, or that may be imposed, 
under this section.
  (4) The [Secretary] Administration shall recover a civil 
penalty not paid after the penalty is final or after a court 
enters a final judgment for the [Secretary] Administration.

Sec. 70116. Consultation

  (a) Matters Affecting National Security.--The [Secretary of 
Transportation] Federal Aviation Administration shall consult 
with the Secretary of Defense on a matter under this chapter 
affecting national security. The Secretary of Defense shall 
identify and notify the [Secretary of Transportation] Federal 
Aviation Administration of a national security interest 
relevant to an activity under this chapter.
  (b) Matters Affecting Foreign Policy.--The [Secretary of 
Transportation] Federal Aviation Administration shall consult 
with the Secretary of State on a matter under this chapter 
affecting foreign policy. The Secretary of State shall identify 
and notify the [Secretary of Transportation] Federal Aviation 
Administration of a foreign policy interest or obligation 
relevant to an activity under this chapter.
  (c) Other Matters.--In carrying out this chapter, the 
[Secretary of Transportation] Federal Aviation Administration 
shall consult with the head of another executive agency--
          (1) to provide consistent application of licensing 
        requirements under this chapter;
          (2) to ensure fair treatment for all license 
        applicants; and
          (3) when appropriate.

Sec. 70117. Relationship to other executive agencies, laws, and 
                    international obligations

  (a) * * *
          * * * * * * *
  (d) Consultation.--The [Secretary of Transportation] Federal 
Aviation Administration is encouraged to consult with a State 
to simplify and expedite the approval of a space launch 
activity.
  (e) Foreign Countries.--The [Secretary of Transportation] 
Federal Aviation Administration shall--
          (1) carry out this chapter consistent with an 
        obligation the United States Government assumes in a 
        treaty, convention, or agreement in force between the 
        Government and the government of a foreign country; and
          (2) consider applicable laws and requirements of a 
        foreign country when carrying out this chapter.
  (f) Launch Not an Export.--A launch vehicle or payload that 
is launched is not, because of the launch, an export for 
purposes of a law controlling exports.
  (g) Nonapplication.--This chapter does not apply to--
          (1) a launch, operation of a launch vehicle or launch 
        site, or other space activity the Government carries 
        out for the Government; or
          (2) planning or policies related to the launch, 
        operation, or activity.

Sec. 70118. User fees

  The [Secretary of Transportation] Federal Aviation 
Administration may collect a user fee for a regulatory or other 
service conducted under this chapter only if specifically 
authorized by this chapter.

Sec. 70119. Authorization of appropriations

  The following amounts may be appropriated to the [Secretary 
of Transportation] Federal Aviation Administration for the 
fiscal year ending September 30, 1993:
          (1) $4,900,000 to carry out this chapter.
          (2) $20,000,000 for a program to ensure the 
        resiliency of the space launch infrastructure of the 
        United States if a law is enacted to establish that 
        program in the Department of Transportation.

    CHAPTER 703--SPACE TRANSPORTATION INFRASTRUCTURE MATCHING GRANTS

          * * * * * * *

Sec. 70301. Definitions

  In this chapter--
          (1) the definitions in section 502 of the National 
        Aeronautics and Space Administration Authorization Act, 
        Fiscal Year 1993 (15 U.S.C. 5802) apply.
          (2) ``commercial space transportation infrastructure 
        development'' includes--
                  (A) construction, improvement, design, and 
                engineering of space transportation 
                infrastructure in the United States; and
                  (B) technical studies to define how new or 
                enhanced space transportation infrastructure 
                can best meet the needs of the United States 
                commercial space transportation industry.
          (3) ``project'' means a project (or separate projects 
        submitted together) to carry out commercial space 
        transportation infrastructure development, including 
        the combined submission of all projects to be 
        undertaken at a particular site in a fiscal year.
          (4) ``project grant'' means a grant of an amount by 
        the [Secretary of Transportation] Federal Aviation 
        Administration to a sponsor for one or more projects.
          (5) ``public agency'' means a State or an agency of a 
        State, a political subdivision of a State, or a tax-
        supported organization.
          (6) ``sponsor'' means a public agency that, 
        individually or jointly with one or more other public 
        agencies, submits to the [Secretary] Administration 
        under this chapter an application for a project grant.

Sec. 70302. Grant authority

  (a) General Authority.--To ensure the resiliency of the space 
transportation infrastructure of the United States, the 
[Secretary of Transportation] Federal Aviation Administration 
may make project grants to sponsors as provided in this 
chapter.
  (b) Limitations.--The [Secretary] Administration may make a 
project grant under this chapter only if--
          (1) at least 10 percent of the total cost of the 
        project will be paid by the private sector; and
          (2) the grant will not be for more than 50 percent of 
        the total cost of the project.

Sec. 70303. Grant applications

  (a) General.--A sponsor may submit to the [Secretary of 
Transportation] Federal Aviation Administration an application 
for a project grant. The application must state the project to 
be undertaken and be in the form and contain the information 
the [Secretary] Administration requires.
  (b) Considerations and Consultation.--(1) In selecting 
proposed projects for grants under this section, the [Secretary 
of Transportation] Federal Aviation Administration shall 
consider--
          (A) the contribution of the project to industry 
        capabilities that serve the United States Government's 
        space transportation needs;
          (B) the extent of industry's financial contribution 
        to the project;
          (C) the extent of industry's participation in the 
        project;
          (D) the positive impact of the project on the 
        international competitiveness of the United States 
        space transportation industry;
          (E) the extent of State contributions to the project; 
        and
          (F) the impact of the project on launch operations 
        and other activities at Government launch ranges.
  (2) The [Secretary of Transportation] Federal Aviation 
Administration shall consult with the Secretary of Defense, the 
Administrator of the National Space and Aeronautics 
Administration, and the heads of other appropriate agencies of 
the Government about paragraphs (1) (A) and (F) of this 
subsection.
  (c) Requirements.--The [Secretary of Transportation] Federal 
Aviation Administration may approve an application only if the 
[Secretary] Administration is satisfied that--
          (1) the project will contribute to the purposes of 
        this chapter;
          (2) the project is reasonably consistent with plans 
        (existing at the time of approval of the project) of 
        public agencies that are--
                  (A) authorized by the State in which the 
                project is located; and
                  (B) responsible for the development of the 
                area surrounding the project site;
          (3) if the application proposes to use Government 
        property, the specific consent of the head of the 
        appropriate agency has been obtained;
          (4) the project will be completed without 
        unreasonable delay;
          (5) the sponsor submitting the application has the 
        legal authority to engage in the project; and
          (6) any additional requirements prescribed by the 
        [Secretary] Administration have been met.
  (d) Preference for Industry Contributions.--The [Secretary of 
Transportation] Federal Aviation Administration shall give 
preference to applications for projects for which there will be 
greater industry financial contributions, all other factors 
being equal.

Sec. 70304. Environmental requirements

  (a) Policy.--It is the policy of the United States that 
projects selected under this chapter shall provide for the 
protection and enhancement of the natural resources and the 
quality of the environment of the United States. In carrying 
out this policy, the [Secretary of Transportation] Federal 
Aviation Administration shall consult with the Secretary of the 
Interior and the Administrator of the Environmental Protection 
Agency about a project that may have a significant effect on 
natural resources, including fish and wildlife, natural, 
scenic, and recreational assets, water and air quality, and 
other factors affecting the environment. If the [Secretary of 
Transportation] Federal Aviation Administration finds that a 
project will have a significant adverse effect, the [Secretary] 
Administration may approve the application for the project only 
if, after a complete review that is a matter of public record, 
the [Secretary] Administration makes a written finding that no 
feasible and prudent alternative to the project exists and that 
all reasonable steps have been taken to minimize the adverse 
effect.
  (b) Public Hearing Requirement.--The [Secretary of 
Transportation] Federal Aviation Administration may approve an 
application only if the sponsor of the project certifies to the 
[Secretary] Administration that an opportunity for a public 
hearing has been provided to consider the economic, social, and 
environmental effects of the project and its consistency with 
the goals of any planning carried out by the community. When a 
hearing is held under this paragraph, the sponsor shall submit 
a copy of the transcript of the hearing to the [Secretary] 
Administration.
  (c) Compliance With Air and Water Quality Standards.--(1) The 
[Secretary of Transportation] Federal Aviation Administration 
may approve an application only if the chief executive officer 
of the State in which the project is located certifies in 
writing to the [Secretary] Administration that there is 
reasonable assurance that the project will be located, 
designed, constructed, and operated to comply with applicable 
air and water quality standards. If the Administrator has not 
prescribed those standards, certification shall be obtained 
from the Administrator. Notice of certification or refusal to 
certify shall be provided not later than 60 days after the 
[Secretary] Administration receives the application.
  (2) The [Secretary of Transportation] Federal Aviation 
Administration shall condition the approval of an application 
on compliance with applicable air and water quality standards 
during construction and operation.
  (d) Compliance With Laws and Regulations.--The [Secretary of 
Transportation] Federal Aviation Administration may require a 
certification from a sponsor that the sponsor will comply with 
all applicable laws and regulations. The [Secretary] 
Administration may rescind at any time acceptance of a 
certification from a sponsor under this subsection. This 
subsection does not affect any responsibility of the 
[Secretary] Administration under another law, including--
          (1) section 303 of this title;
          (2) title VI of the Civil Rights Act of 1964 (42 
        U.S.C. 2000d et seq.);
          (3) title VIII of the Act of April 11, 1968 (42 
        U.S.C. 3601 et seq.);
          (4) the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.); and
          (5) the Uniform Relocation Assistance and Real 
        Property Acquisition Policies Act of 1970 (42 U.S.C. 
        4601 et seq.).

Sec. 70305. Authorization of appropriations

  Not more than $10,000,000 may be appropriated to the 
[Secretary of Transportation] Federal Aviation Administration 
to make grants under this chapter. Amounts appropriated under 
this section remain available until expended.
          * * * * * * *
                              ----------                              


            SECTION 11 OF THE INSPECTOR GENERAL ACT OF 1978

                              definitions

  Sec. 11. As used in this Act--
          (1) the term ``head of the establishment'' means the 
        Secretary of Agriculture, Commerce, Defense, Education, 
        Energy, Health and Human Services, Housing and Urban 
        Development, the Interior, Labor, State, 
        Transportation, or the Treasury; the Attorney General; 
        the Administrator of the Agency for International 
        Development, Environmental Protection, General 
        Services, National Aeronautics and Space, or Small 
        Business, or Veterans' Affairs; the Director of the 
        Federal Emergency Management Agency, the Office of 
        Personnel Management or the United States Information 
        Agency; the Chairman of the Nuclear Regulatory 
        Commission or the Railroad Retirement Board; the 
        Chairperson of the Thrift Depositor Protection 
        Oversight Board; the Chief Executive Officer of the 
        Corporation for National and Community Service or 
        Federal Aviation Administration; the Administrator of 
        the Community Development Financial Institutions Fund; 
        and the chief officer of the Resolution Trust 
        Corporation; or the Commissioner of Social Security, 
        Social Security Administration; as the case may be;
          (2) the term ``establishment'' means the Department 
        of Agriculture, Commerce, Defense, Education, Energy, 
        Health and Human Services, Housing and Urban 
        Development, the Interior, Justice, Labor, State, 
        Transportation, or the Treasury; the Agency for 
        International Development, the Community Development 
        Financial Institutions Fund, the Environmental 
        Protection Agency, the Federal Emergency Management 
        Agency, the General Services Administration, the 
        National Aeronautics and Space Administration, the 
        Nuclear Regulatory Commission, the Office of Personnel 
        Management, the Railroad Retirement Board, the 
        Resolution Trust Corporation, the Federal Deposit 
        Insurance Corporation, the Small Business 
        Administration, the United States Information Agency, 
        the Federal Aviation Administration, the Corporation 
        for National and Community Service,, or the Veterans' 
        Administration, or the Social Security Administration; 
        as the case may be;
          * * * * * * *
                              ----------                              


                      TITLE 5, UNITED STATES CODE

          * * * * * * *

                          PART III--EMPLOYEES

          * * * * * * *

                     Subpart A--General Provisions

                        CHAPTER 21--DEFINITIONS

          * * * * * * *

Sec. 2109. Air traffic controller; Secretary

  For the purpose of this title--
          (1) ``air traffic controller'' or ``controller'' 
        means a civilian employee of the [Department of 
        Transportation] Federal Aviation Administration or the 
        Department of Defense who, in an air traffic control 
        facility or flight service station facility--
                  (A) is actively engaged--
                          (i) in the separation and control of 
                        air traffic; or
                          (ii) in providing preflight, 
                        inflight, or airport advisory service 
                        to aircraft operators; or
                  (B) is the immediate supervisor of any 
                employee described in subparagraph (A); and
          (2) ``Secretary'', when used in connection with ``air 
        traffic controller'' or ``controller'', means the 
        [Secretary of Transportation] Chief Executive Officer 
        of the Federal Aviation Administration with respect to 
        controllers in the [Department of Transportation] 
        Federal Aviation Administration, and the Secretary of 
        Defense with respect to controllers in the Department 
        of Defense.
          * * * * * * *

                    Subpart C--Employee Performance

                          CHAPTER 41--TRAINING

          * * * * * * *

Sec. 4109. Expenses of training

  (a) * * *
          * * * * * * *
  (c) Notwithstanding subsection (a)(1) of this section, the 
[Administrator, Federal Aviation Administration,] Federal 
Aviation Administration may pay an individual training to be an 
air traffic controller of such Administration, and the 
Secretary of Defense may pay an individual training to be an 
air traffic controller of the Department of Defense, during the 
period of such training, at the applicable rate of basic pay 
for the hours of training officially ordered or approved in 
excess of forty hours in an administrative workweek.
          * * * * * * *

                     Subpart D--Pay and Allowances

          * * * * * * *

                   CHAPTER 53--PAY RATES AND SYSTEMS

          * * * * * * *

              SUBCHAPTER II--EXECUTIVE SCHEDULE PAY RATES

          * * * * * * *

Sec. 5313. Positions at level II

  Level II of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Deputy Secretary of Defense.
          * * * * * * *
          [Administrator, Federal Aviation Administration.]
          * * * * * * *

Sec. 5315. Positions at level IV

  Level IV of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Deputy Administrator of General Services.
          Associate Administrator of the National Aeronautics 
        and Space Administration.
          * * * * * * *
          [Deputy Administrator, Federal Aviation 
        Administration.]
          * * * * * * *

                     CHAPTER 55--PAY ADMINISTRATION

                    SUBCHAPTER I--GENERAL PROVISIONS

Sec.
5501.  Disposition of money accruing from lapsed salaries or unused 
          appropriations for salaries.
     * * * * * * *

                        SUBCHAPTER V--PREMIUM PAY

5541.  Definitions.
     * * * * * * *
5546a.   Differential pay for certain employees of [the Federal Aviation 
          Administration and] the Department of Defense.
     * * * * * * *

              SUBCHAPTER IV--DUAL PAY AND DUAL EMPLOYMENT

          * * * * * * *

Sec. 5532. Employment of retired members of the uniformed services; 
                    reduction in retired or retainer pay

  (a) * * *
          * * * * * * *
  [(f)(1) Notwithstanding any other provision of law, the 
retired or retainer pay of a former member of a uniformed 
service shall not be reduced while such former member is 
temporarily employed, during the period described in paragraph 
(2) or any portion thereof, under the administrative authority 
of the Administrator, Federal Aviation Administration, or the 
Secretary of Defense to perform duties in the operation of the 
air traffic control system or to train others to perform such 
duties.
  [(2) The provisions of paragraph (1) of this subsection shall 
be in effect for any period ending not later than December 31, 
1989, during which the Administrator, Federal Aviation 
Administration, or the Secretary of Defense determines that 
there is an unusual shortage of air traffic controllers 
performing duties under the administrative authority of such 
Administrator or such Secretary, respectively.]
          * * * * * * *

                       SUBCHAPTER V--PREMIUM PAY

          * * * * * * *

Sec. 5546a. Differential pay for certain employees of [the Federal 
                    Aviation Administration and] the Department of 
                    Defense

  (a) The [Administrator of the Federal Aviation Administration 
(hereafter in this section referred to as the 
``Administrator'') and the] Secretary of Defense (hereinafter 
referred to in this section as the ``Secretary'') may pay 
premium pay at the rate of 5 per centum of the applicable rate 
of basic pay to--
          (1) any employee of [the Federal Aviation 
        Administration or] the Department of Defense who is--
                  (A) occupying a position in the air traffic 
                controller series classified not lower than GS-
                9 and located in an air traffic control center 
                or terminal or in a flight service station;
                  (B) assigned to a position classified not 
                lower than GS-09 or WG-10 located in an airway 
                facilities sector; or
                  (C) assigned to a flight inspection crew-
                member position classified not lower than GS-11 
                located in a flight inspection field office,
        the duties of whose position are determined by the 
        [Administrator or the] Secretary to be directly 
        involved in or responsible for the operation and 
        maintenance of the air traffic control system; and
          (2) any employee of [the Federal Aviation 
        Administration or] the Department of Defense who is 
        assigned to a flight test pilot position classified not 
        lower than GS-12 located in a region or center, the 
        duties of whose position are determined by the 
        [Administrator or the] Secretary to be unusually 
        taxing, physically or mentally, and to be critical to 
        the advancement of aviation safety[; and].
          [(3) any employee of the Federal Aviation 
        Administration who occupies a position at the Federal 
        Aviation Administration Academy, Oklahoma City, 
        Oklahoma, the duties of which are determined by the 
        Administrator to require the individual to be actively 
        engaged in or directly responsible for training 
        employees to perform the duties of a position described 
        in subparagraph (a); (b); or (c) or paragraph (1) of 
        this subsection, and who, immediately prior to assuming 
        such position at such Academy, occupied a position 
        referred to in subparagraph (a), (b), or (c) of 
        paragraph (1) of this subsection.]
  (b) The premium pay payable under any subsection of this 
section is in addition to basic pay and to premium pay payable 
under any other subsection of this section and any other 
provision of this subchapter.
  (c)(1) The [Administrator or the] Secretary may pay premium 
pay to any employee of [the Federal Aviation Administration or] 
the Department of Defense who--
          (A) is an air traffic controller located in an air 
        traffic control center or terminal;
          (B) is not required as a condition of employment to 
        be certified by the Administrator or the Secretary as 
        proficient and medically qualified to perform duties 
        including the separation and control of air traffic; 
        and
          (C) is so certified.
  (2) Premium pay paid under paragraph (1) of this subsection 
shall be paid at the rate of 1.6 per centum of the applicable 
rate of basic pay for so long as such employee is so certified.
  (d)(1) The [Administrator or the] Secretary may pay premium 
pay to any air traffic controller of [the Federal Aviation 
Administration or] the Department of Defense who is assigned by 
the [Administrator or the] Secretary to provide on-the-job 
training to another air traffic controller while such other air 
traffic controller is directly involved in the separation and 
control of live air traffic.
  (2) Premium pay paid under paragraph (1) of this subsection 
shall be paid at the rate of 10 per centum of the applicable 
hourly rate of basic pay times the number of hours and portion 
of an hour during which the air traffic controller of [the 
Federal Aviation Administration or] the Department of Defense 
provides on-the-job training.
  (e)(1) The [Administrator or the] Secretary may pay premium 
pay to any air traffic controller or flight service station 
specialist of [the Federal Aviation Administration or] the 
Department of Defense who, while working a regularly scheduled 
eight-hour period of service, is required by his supervisor to 
work during the fourth through sixth hour of such period 
without a break of thirty minutes for a meal.
  (2) Premium pay paid under paragraph (1) of this subsection 
shall be paid at the rate of 50 per centum of one-half of the 
applicable hourly rate of basic pay.
  (f)[(1)] The [Administrator or the] Secretary shall prescribe 
standards for determining which air traffic controllers and 
other employees of [the Federal Aviation Administration or] the 
Department of Defense are to be paid premium pay under this 
section.
  [(2) The Administrator may prescribe such rules as he 
determines are necessary to carry out the provisions of this 
section.]
          * * * * * * *
                              ----------                              


               CHAPTER 5 OF TITLE 14, UNITED STATES CODE

                    CHAPTER 5--FUNCTIONS AND POWERS

Sec.
81.  Aids to navigation authorized.
82.  Cooperation with [Administrator of] the Federal Aviation 
          Administration.
     * * * * * * *

Sec. 81. Aids to navigation authorized

  In order to aid navigation and to prevent disasters, 
collisions, and wrecks of vessels and aircraft, the Coast Guard 
may establish, maintain, and operate:
          (1) * * *
          * * * * * * *
          (3) electronic aids to navigation systems (a) 
        required to serve the needs of the armed forces of the 
        United States peculiar to warfare and primarily of 
        military concern as determined by the Secretary of 
        Defense or any department within the Department of 
        Defense; or (b) required to serve the needs of the 
        maritime commerce of the United States; or (c) required 
        to serve the needs of the air commerce of the United 
        States as requested by [the Administrator of] the 
        Federal Aviation Administration.
These aids to navigation other than electronic aids to 
navigation systems shall be established and operated only 
within the United States, the waters above the Continental 
Shelf, the territories and possessions of the United States, 
the Trust Territory of the Pacific Islands, and beyond the 
territorial jurisdiction of the United States at places where 
naval or military bases of the United States are or may be 
located. The Coast Guard may establish, maintain, and operate 
aids to maritime navigation under paragraph (1) of this section 
by contract with any person, public body, or instrumentality.

Sec. 82. Cooperation with [Administrator of] the Federal Aviation 
                    Administration

  The Coast Guard, in establishing, maintaining, or operating 
any aids to air navigation herein provided, shall solicit the 
cooperation of [the Administrator of] the Federal Aviation 
Administration to the end that the personnel and facilities of 
the Federal Aviation Administration will be utilized to the 
fullest possible advantage. Before locating and operating any 
such aid on military or naval bases or regions, the consent of 
the Secretary of the Army, the Secretary of the Navy, or the 
Secretary of the Air Force, as the case may be, shall first be 
obtained. No such aid shall be located within the territorial 
jurisdiction of any foreign country without the consent of the 
government thereof. Nothing in this title shall be deemed to 
limit the authority granted by chapter 167 of title 10 or part 
A of subtitle VII of title 49.
          * * * * * * *

Sec. 90. Ocean stations

  (a) * * *
  (b) The Coast Guard is authorized, subject to approval by 
[the Administrator of] the Federal Aviation Administration, to 
operate, on floating ocean stations authorized herein, such air 
navigation facilities as the [Administrator] Administration may 
find necessary or desirable for the safe and efficient 
protection and control of air traffic. The Coast Guard, in 
establishing, maintaining, or operating such air navigation 
facilities shall request the cooperation of [the Administrator 
of] the Federal Aviation Administration to the end that the 
personnel and facilities of the Federal Aviation Administration 
will be utilized to the fullest possible advantage.
          * * * * * * *
                              ----------                              


                        WOLF TRAP FARM PARK ACT

          * * * * * * *
  Sec. 4. (a) * * *
          * * * * * * *
  (e) No grants or loans may be made under this section unless 
the Secretary has received what the Secretary deems to be 
adequate written assurance from the [Administrator of the] 
Federal Aviation Administration that any easement granted to 
the Commonwealth of Virginia by the [Administrator] 
Administration for construction of the Dulles Toll Road will 
contain noise standards (``A'' weighted energy average sound 
level of 52 to 54 dB) and other standards set forth in the 
Final Environmental Impact Statement for the Dulles Airport 
Access Road Outer Parallel Toll Roads, prepared by the Federal 
Aviation Administration and issued in May of 1982, legally 
enforceable by the [Administrator] Administration and by the 
Secretary which are adequate to protect the center from undue 
noise pollution and other environmental degradation 
attributable to such toll road both during and after its 
construction, and will also contain legally enforceable 
assurances that the Commonwealth of Virginia will promptly take 
measures to achieve the noise levels specified in the easement. 
Such measures may include a partial or total ban on truck 
traffic on the toll road or other mitigation recommended by the 
Secretary and the [Administrator] Administration.
          * * * * * * *
  Sec. 8. (a) * * *
  (b) The Secretary shall monitor noise pollution which is 
associated with the Dulles road corridor (including the airport 
access and toll roads) and shall notify the Federal Aviation 
Administration, the Commonwealth of Virginia, and the 
appropriate committees of Congress if, after conferring with 
the [Administrator of the] Federal Aviation Administration, the 
Secretary finds that such noise pollution is exceeding the 
standards set forth in section 4(e). Within sixty days after 
any such notification, the [Administrator of the] Federal 
Aviation Administration shall take steps to reduce noise 
pollution so as to conform to such standards. The Secretary or 
the Foundation may bring an action in the United States 
District Court for the District of Columbia to enjoin any 
violation by the Commonwealth of Virginia of the easement 
referred to in section 4(e).
          * * * * * * *
                              ----------                              


              SECTION 922 OF TITLE 18, UNITED STATES CODE

Sec. 922. Unlawful acts

  (a) * * *
          * * * * * * *
  (p)(1) * * *
          * * * * * * *
  (5) This subsection shall not apply to any firearm which--
          (A) has been certified by the Secretary of Defense or 
        the Director of Central Intelligence, after 
        consultation with the Secretary and [the Administrator 
        of] the Federal Aviation Administration, as necessary 
        for military or intelligence applications; and
          * * * * * * *
                              ----------                              


                         ACT OF AUGUST 12, 1946

   AN ACT To establish a national air museum, and for other purposes.

  Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That (a) 
There is hereby established under the Smithsonian Institution a 
bureau to be known as a National Air and Space Museum, which 
shall be administered by the Smithsonian Institution with the 
advice of a board to be composed of the Chief of Staff of the 
Air Force, or his designee, the Chief of Naval Operations, or 
his designee, the Chief of Staff of the Army, or his designee, 
the Commandant of the Marine Corps, or his designee, the 
Commandant of the Coast Guard, or his designee, the 
Administrator of the National Aeronautics and Space 
Administration, or his designee, the [Administrator of the 
Federal Aviation Agency,] Chief Executive Officer of the 
Federal Aviation Administration, or his designee, the Secretary 
of the Smithsonian Institution, and three citizens of the 
United States appointed by the President from civilian life who 
shall serve at the pleasure of the President. The members of 
the board shall serve as such members without compensation but 
shall be reimbursed for travel, subsistence, and other 
necessary expenses incurred by them in the performance of their 
duties as members of the board.
          * * * * * * *
                              ----------                              


SECTION 602 OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 
                                  1949

SEC. 602. REPEAL AND SAVING PROVISIONS.

  (a) * * *
          * * * * * * *
  (d) Nothing in this Act shall impair or affect any authority 
of--
          (1) * * *
          * * * * * * *
          (14) the [Administrator of the Federal Aviation 
        Agency or] Federal Aviation Administration or the Chief 
        of the Weather Bureau with respect to the disposal of 
        airport property and airway property for use as such 
        property. For the purpose of this paragraph the terms 
        ``airport property'' and ``airway property'' shall have 
        the respective meanings ascribed to them in the 
        International Aviation Facilities Postal Service;
          * * * * * * *
                              ----------                              


                       NOISE CONTROL ACT OF 1972

          * * * * * * *

                             citizen suits

    Sec. 12. (a) Except as provided in subsection (b), any 
person (other than the United States) may commence a civil 
action on his own behalf--
          (1) * * *
          (2) against--
                  (A) * * *
                  (B) the [Administrator of the] Federal 
                Aviation Administration where there is alleged 
                a failure of such [Administrator] 
                Administration to perform any act or duty under 
                section [611 of the Federal Aviation Act of 
                1958] 44709(b)(1)(B) or 44715 of title 49, 
                United States Code, which is not discretionary 
                with such [Administrator] Administration.
The district courts of the United States shall have 
jurisdiction, without regard to the amount in controversy, to 
restrain such person from violating such noise control 
requirement or to order [such Administrator] the agency to 
perform such act or duty, as the case may be.
    (b) No action may be commenced--
          (1) under subsection (a)(1)--
                  (A) prior to sixty days after the plaintiff 
                has given notice of the violation (i) to the 
                Administrator of the Environmental Protection 
                Agency (and to the Federal Aviation 
                [Administrator] Administration in the case of a 
                violation of a noise control requirement under 
                such section 611) and (ii) to any alleged 
                violator of such requirement, or
                  (B) if an [Administrator] agency has 
                commenced and is diligently prosecuting a civil 
                action to require compliance with the noise 
                control requirement, but in any such action in 
                a court of the United States any person may 
                intervene as a matter of right, or
    (c) In an action under this section, the Administrator of 
the Environmental Protection Agency, if not a party, may 
intervene as a matter of right. In an action under this section 
respecting a noise control requirement under section [611 of 
the Federal Aviation Act of 1958,] 44715 of title 49, United 
States Code, the [Administrator of the] Federal Aviation 
Administration, if not a party, may also intervene as a matter 
of right.
          * * * * * * *
    (e) Nothing in this section shall restrict any right which 
any person (or class of persons) may have under any statute or 
common law to seek enforcement of any noise control requirement 
or to seek any other relief (including relief against an 
[Administrator] agency).
          * * * * * * *

                       judicial review; witnesses

    Sec. 16. (a) A petition for review of action of the 
Administrator of the Environmental Protection Agency in 
promulgating any standard or regulation under section 6, 17, or 
18 of this Act or any labeling regulation under section 8 of 
this Act may be filed only in the United States Court of 
Appeals for the District of Columbia Circuit, and a petition 
for review of action of the [Administrator of the] Federal 
Aviation Administration in promulgating any standard or 
regulation under section [611 of the Federal Aviation Act of 
1958] 44715 of title 49, United States Code, may be filed only 
in such court. Any such petition shall be filed within ninety 
days from the date of such promulgation, or after such date if 
such petition is based solely on grounds arising after such 
ninetieth day. Action of either [Administrator] agency with 
respect to which review could have been obtained under this 
subsection shall not be subject to judicial review in civil or 
criminal proceedings for enforcement.
    (b) If a party seeking review under this Act applies to the 
court for leave to adduce additional evidence, and shows to the 
satisfaction of the court that the information is material and 
was not available at the time of the proceeding before the 
Administrator of such Agency or the Federal Aviation 
Administration (as the case may be), the court may order such 
additional evidence (and evidence in rebuttal thereof) to be 
taken before such [Administrator] agency, and to be adduced 
upon the hearing, in such manner and upon such terms and 
conditions as the court may deem proper. Such [Administrator] 
agency may modify his findings as to the facts, or make new 
findings, by reason of the additional evidence so taken, and he 
shall file with the court such modified or new findings, and 
his recommendation, if any, for the modification or setting 
aside of his original order, with the return of such additional 
evidence.
    (c) With respect to relief pending review of an action by 
either [Administrator] agency, no stay of an agency action may 
be granted unless the reviewing court determines that the party 
seeking such stay is (1) likely to prevail on the merits in the 
review proceeding and (2) will suffer irreparable harm pending 
such proceeding.
          * * * * * * *
                              ----------                              


                    SECTION 604 OF THE CLEAN AIR ACT

SEC. 604. PHASE-OUT OF PRODUCTION AND CONSUMPTION OF CLASS I 
                    SUBSTANCES.

  (a) * * *
          * * * * * * *
  (d) Exceptions for Essential Uses of Methyl Chloroform, 
Medical Devices, and Aviation Safety.--
          (1) * * *
          * * * * * * *
          (3) Aviation safety.--(A) Notwithstanding the 
        termination of production required by subsection (b), 
        the Administrator, after notice and opportunity for 
        public comment, may, to the extent such action is 
        consistent with the Montreal Protocol, authorize the 
        production of limited quantities of halon-1211 
        (bromochlorodifluoromethane), halon-1301 
        (bromotrifluoromethane), and halon-2402 
        (dibromotetrafluoroethane) solely for purposes of 
        aviation safety if the [Administrator of the] Federal 
        Aviation Administration, in consultation with the 
        Administrator, determines that no safe and effective 
        substitute has been developed and that such 
        authorization is necessary for aviation safety 
        purposes.
          (B) The [Administrator of the] Federal Aviation 
        Administration shall, in consultation with the 
        Administrator, examine whether safe and effective 
        substitutes for methyl chloroform or alternative 
        techniques will be available for nondestructive testing 
        for metal fatigue and corrosion of existing airplane 
        engines and airplane parts susceptible to metal fatigue 
        and whether an exception for such uses of methyl 
        chloroform under this paragraph will be necessary for 
        purposes of airline safety after January 1, 2005 and 
        provide a report to Congress in 1998.
          * * * * * * *