US (United States) Code. Title 49. Subtitle VII. Part A. Subpart I. Chapter 401: General provissions

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Transportation. Aviation programs

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-CITE-

49 USC CHAPTER 401 - GENERAL PROVISIONS 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

CHAPTER 401 - GENERAL PROVISIONS

-MISC1-

Sec.

40101. Policy.

40102. Definitions.

40103. Sovereignty and use of airspace.

40104. Promotion of civil aeronautics and safety of air

commerce.

40105. International negotiations, agreements, and

obligations.

40106. Emergency powers.

40107. Presidential transfers.

40108. Training schools.

40109. Authority to exempt.

40110. General procurement authority.

40111. Multiyear procurement contracts for services and

related items.

40112. Multiyear procurement contracts for property.

40113. Administrative.

40114. Reports and records.

40115. Withholding information.

40116. State taxation.

40117. Passenger facility fees.

40118. Government-financed air transportation.

40119. Security and research and development activities.

40120. Relationship to other laws.

40121. Air traffic control modernization reviews.

40122. Federal Aviation Administration personnel management

system.

40123. Protection of voluntarily submitted information.

40124. Interstate agreements for airport facilities.

40125. Qualifications for public aircraft status.

40126. Severable services contracts for periods crossing

fiscal years.

40127. Prohibitions on discrimination.

40128. Overflights of national parks.

AMENDMENTS

2000 - Pub. L. 106-181, title VII, Secs. 702(b)(2), 705(b),

706(b), title VIII, Sec. 803(b), Apr. 5, 2000, 114 Stat. 156-158,

192, added items 40125 to 40128.

1997 - Pub. L. 105-102, Sec. 3(d)(1)(B), Nov. 20, 1997, 111 Stat.

2215, amended Pub. L. 104-287, Sec. 5(69)(B). See 1996 Amendment

note below.

1996 - Pub. L. 104-287, Sec. 5(69)(B), Oct. 11, 1996, 110 Stat.

3396, as amended by Pub. L. 105-102, Sec. 3(d)(1)(B), Nov. 20,

1997, 111 Stat. 2215, added item 40124.

Pub. L. 104-264, title II, Sec. 254, title IV, Secs. 401(b)(2),

402(b), Oct. 9, 1996, 110 Stat. 3238, 3255, 3256, inserted "safety

of" before "air commerce" in item 40104 and added item 40121 "Air

traffic control modernization reviews" and items 40122 and 40123.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 46301, 46316 of this

title.

-End-

-CITE-

49 USC Sec. 40101 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40101. Policy

-STATUTE-

(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 shall consider the

following matters, among others, as being in the public interest

and consistent with public convenience and necessity:

(1) assigning and maintaining safety as the highest priority in

air commerce.

(2) before authorizing new air transportation services,

evaluating the safety implications of those services.

(3) preventing deterioration in established safety procedures,

recognizing the clear intent, encouragement, and dedication of

Congress to further the highest degree of safety in air

transportation and air commerce, and to maintain the safety

vigilance that has evolved in air transportation and air commerce

and has come to be expected by the traveling and shipping public.

(4) the availability of a variety of adequate, economic,

efficient, and low-priced services without unreasonable

discrimination or unfair or deceptive practices.

(5) coordinating transportation by, and improving relations

among, air carriers, and encouraging fair wages and working

conditions.

(6) placing maximum reliance on competitive market forces and

on actual and potential competition -

(A) to provide the needed air transportation system; and

(B) to encourage efficient and well-managed air carriers to

earn adequate profits and attract capital, considering any

material differences between interstate air transportation and

foreign air transportation.

(7) developing and maintaining a sound regulatory system that

is responsive to the needs of the public and in which decisions

are reached promptly to make it easier to adapt the air

transportation system to the present and future needs of -

(A) the commerce of the United States;

(B) the United States Postal Service; and

(C) the national defense.

(8) encouraging air transportation at major urban areas through

secondary or satellite airports if consistent with regional

airport plans of regional and local authorities, and if endorsed

by appropriate State authorities -

(A) encouraging the transportation by air carriers that

provide, in a specific market, transportation exclusively at

those airports; and

(B) fostering an environment that allows those carriers to

establish themselves and develop secondary or satellite airport

services.

(9) preventing unfair, deceptive, predatory, or anticompetitive

practices in air transportation.

(10) avoiding unreasonable industry concentration, excessive

market domination, monopoly powers, and other conditions that

would tend to allow at least one air carrier or foreign air

carrier unreasonably to increase prices, reduce services, or

exclude competition in air transportation.

(11) maintaining a complete and convenient system of continuous

scheduled interstate air transportation for small communities and

isolated areas with direct financial assistance from the United

States Government when appropriate.

(12) encouraging, developing, and maintaining an air

transportation system relying on actual and potential competition

-

(A) to provide efficiency, innovation, and low prices; and

(B) to decide on the variety and quality of, and determine

prices for, air transportation services.

(13) encouraging entry into air transportation markets by new

and existing air carriers and the continued strengthening of

small air carriers to ensure a more effective and competitive

airline industry.

(14) promoting, encouraging, and developing civil aeronautics

and a viable, privately-owned United States air transport

industry.

(15) strengthening the competitive position of air carriers to

at least ensure equality with foreign air carriers, including the

attainment of the opportunity for air carriers to maintain and

increase their profitability in foreign air transportation.

(16) ensuring that consumers in all regions of the United

States, including those in small communities and rural and remote

areas, have access to affordable, regularly scheduled air

service.

(b) All-Cargo Air Transportation Considerations. - In carrying

out subpart II of this part and those provisions of subpart IV

applicable in carrying out subpart II, the Secretary of

Transportation shall consider the following matters, among others

and in addition to the matters referred to in subsection (a) of

this section, as being in the public interest for all-cargo air

transportation:

(1) encouraging and developing an expedited all-cargo air

transportation system provided by private enterprise and

responsive to -

(A) the present and future needs of shippers;

(B) the commerce of the United States; and

(C) the national defense.

(2) encouraging and developing an integrated transportation

system relying on competitive market forces to decide the extent,

variety, quality, and price of services provided.

(3) providing services without unreasonable discrimination,

unfair or deceptive practices, or predatory pricing.

(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 shall

consider the following matters, among others, as being in the

public interest:

(1) assigning, maintaining, and enhancing safety and security

as the highest priorities in air commerce.

(2) regulating air commerce in a way that best promotes safety

and fulfills national defense requirements.

(3) encouraging and developing civil aeronautics, including new

aviation technology.

(4) controlling the use of the navigable airspace and

regulating civil and military operations in that airspace in the

interest of the safety and efficiency of both of those

operations.

(5) consolidating research and development for air navigation

facilities and the installation and operation of those

facilities.

(6) developing and operating a common system of air traffic

control and navigation for military and civil aircraft.

(7) providing assistance to law enforcement agencies in the

enforcement of laws related to regulation of controlled

substances, to the extent consistent with aviation safety.

(e) International Air Transportation. - In formulating United

States international air transportation policy, the Secretaries of

State and Transportation shall develop a negotiating policy

emphasizing the greatest degree of competition compatible with a

well-functioning international air transportation system, including

the following:

(1) strengthening the competitive position of air carriers to

ensure at least equality with foreign air carriers, including the

attainment of the opportunity for air carriers to maintain and

increase their profitability in foreign air transportation.

(2) freedom of air carriers and foreign air carriers to offer

prices that correspond to consumer demand.

(3) the fewest possible restrictions on charter air

transportation.

(4) the maximum degree of multiple and permissive international

authority for air carriers so that they will be able to respond

quickly to a shift in market demand.

(5) eliminating operational and marketing restrictions to the

greatest extent possible.

(6) integrating domestic and international air transportation.

(7) increasing the number of nonstop United States gateway

cities.

(8) opportunities for carriers of foreign countries to increase

their access to places in the United States if exchanged for

benefits of similar magnitude for air carriers or the traveling

public with permanent linkage between rights granted and rights

given away.

(9) eliminating discrimination and unfair competitive practices

faced by United States airlines in foreign air transportation,

including -

(A) excessive landing and user fees;

(B) unreasonable ground handling requirements;

(C) unreasonable restrictions on operations;

(D) prohibitions against change of gauge; and

(E) similar restrictive practices.

(10) promoting, encouraging, and developing civil aeronautics

and a viable, privately-owned United States air transport

industry.

(f) Strengthening Competition. - In selecting an air carrier to

provide foreign air transportation from among competing applicants,

the Secretary of Transportation shall consider, in addition to the

matters specified in subsections (a) and (b) of this section, the

strengthening of competition among air carriers operating in the

United States to prevent unreasonable concentration in the air

carrier industry.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1094; Pub. L.

104-264, title IV, Sec. 401(a), Oct. 9, 1996, 110 Stat. 3255; Pub.

L. 106-181, title II, Sec. 201, Apr. 5, 2000, 114 Stat. 91.)

-MISC1-

HISTORICAL AND REVISION NOTES

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Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40101(a) 49 App.:1302(a). Aug. 23, 1958, Pub. L.

85-726, Sec. 102(a), 72

Stat. 740; Nov. 9, 1977,

Pub. L. 95-163, Sec.

16(b)(1), (2), 91 Stat.

1284; Oct. 24, 1978, Pub. L.

95-504, Sec. 3(a), 92 Stat.

1705; restated Feb. 15,

1980, Pub. L. 96-192, Sec.

2, 94 Stat. 35.

49 Aug. 23, 1958, Pub. L.

App.:1551(b)(1)(E). 85-726, 72 Stat. 731, Sec.

1601(b)(1)(E); added Oct. 4,

1984, Pub. L. 98-443, Sec.

3(e), 98 Stat. 1704.

40101(b) 49 App.:1302(b). Aug. 23, 1958, Pub. L.

85-726, 72 Stat. 731, Sec.

102(b); added Nov. 9, 1977,

Pub. L. 95-163, Sec.

16(b)(3), 91 Stat. 1284.

49

App.:1551(b)(1)(E).

40101(c) 49 App.:1347. Aug. 23, 1958, Pub. L.

85-726, Sec. 306, 72 Stat.

749.

49 App.:1655(c)(1). Oct. 15, 1966, Pub. L.

89-670, Sec. 6(c)(1), 80

Stat. 938; Jan. 12, 1983,

Pub. L. 97-449, Sec. 7(b),

96 Stat. 2444.

40101(d) 49 App.:1303. Aug. 23, 1958, Pub. L.

85-726, Sec. 103, 72 Stat.

740; Nov. 18, 1988, Pub. L.

100-690, Sec. 7202(b), 102

Stat. 4424.

49 App.:1655(c)(1).

40101(e) 49 App.:1502(b). Aug. 23, 1958, Pub. L.

85-726, 72 Stat. 731, Sec.

1102(b); added Feb. 15,

1980, Pub. L. 96-192, Sec.

17, 94 Stat. 42.

49

App.:1551(b)(1)(E).

40101(f) 49 App.:1302(c). Aug. 23, 1958, Pub. L.

85-726, 72 Stat. 731, Sec.

102(c); added Oct. 31, 1992,

Pub. L. 102-581, Sec. 205,

106 Stat. 4894.

--------------------------------------------------------------------

In this part, the words "overseas air commerce" and "overseas air

transportation" are omitted as obsolete because there no longer is

a distinction in economic or safety regulation between "interstate"

and "overseas" air commerce or air transportation.

In this section, the words "In carrying out . . . this part" are

substituted for "In the exercise and performance of its powers and

duties under this chapter" in 49 App.:1302(a), "In the exercise and

performance of his powers and duties under this chapter" in 49

App.:1303, and "In exercising the authority granted in, and

discharging the duties imposed by, this chapter" in 49 App.:1347

for consistency in the revised title and to eliminate unnecessary

words.

In subsections (a) and (b), the reference to subpart II is added

because the policy applies only to economic issues, and under the

Federal Aviation Act of 1958 (Public Law 85-726, 72 Stat. 731), the

Civil Aeronautics Board was given responsibility for economic

issues.

In subsection (a)(2), the word "full" is omitted as surplus. The

words "the recommendations of the Secretary of Transportation on"

are omitted as obsolete because the Secretary carries out 49

App.:1302(a). The words "and full evaluation of any report or

recommendation submitted under section 1307 of this Appendix" are

omitted as obsolete because the report and recommendations are no

longer required.

In subsection (a)(4), the words "by air carriers and foreign air

carriers" are omitted as surplus. The words "unreasonable

discrimination" are substituted for "unjust discriminations, undue

preferences or advantages" for consistency in the revised title and

to eliminate unnecessary words.

In subsection (a)(6)(B), the words "nevertheless", "on the one

hand", and "on the other" are omitted as surplus.

In subsection (a)(8), before subclause (A), the word

"authorities" is substituted for "entities" for consistency in the

revised title and with other titles of the Code. In subclause (A),

the words "sole responsibility" are omitted as unnecessary because

of the restatement.

In subsection (a)(15), the words "United States" are omitted as

surplus because of the definition of "air carrier" in section

40102(a) of the revised title.

In subsection (b)(3), the words "unreasonable discrimination" are

substituted for "unjust discriminations, undue preferences or

advantages" for consistency in the revised title and to eliminate

unnecessary words.

In subsections (c) and (d), the reference to subpart III is added

because the policies apply only to safety issues, and under the

Federal Aviation Act of 1958 (Public Law 85-726, 72 Stat. 731), the

Federal Aviation Administration was given responsibility for safety

issues.

In subsection (c), before clause (1), the word "Administrator" in

section 306 of the Federal Aviation Act of 1958 (Public Law 85-726,

72 Stat. 749) is retained on authority of 49:106(g). The words

"consider the following matters" are substituted for "give full

consideration to" for consistency in this section.

In subsection (d)(3), the word "both" in 49 App.:1303(c) is

omitted as surplus the first time it appears. The words "of the

United States" are omitted for consistency in the revised title and

because of the definition of "navigable airspace" in section

40102(a) of the revised title. The words "of those operations" are

added for clarity.

In subsection (d)(5), the word "both" in 49 App.:1303(e) is

omitted as surplus.

In subsection (e), before clause (1), the words "the Congress

intends that" are omitted as surplus. In clauses (1) and (4), the

words "United States" are omitted as surplus because of the

definition of "air carrier" in section 40102(a) of the revised

title. In clause (2), the word "prices" is substituted for "fares

and rates" because of the definition of "price" in section

40102(a). In clause (8), the words "places in the United States"

are substituted for "United States points" for consistency in this

chapter. The word "air" is added for clarity and consistency in

this subtitle. In clause (9)(C), the word "unreasonable" is

substituted for "undue" for consistency in the revised title and

with other titles of the United States Code.

AMENDMENTS

2000 - Subsec. (a)(16). Pub. L. 106-181 added par. (16).

1996 - Subsec. (d)(1). Pub. L. 104-264, Sec. 401(a)(1)(B), added

par. (1). Former par. (1) redesignated (2).

Subsec. (d)(2). Pub. L. 104-264, Sec. 401(a)(1)(A), (2)(A),

redesignated par. (1) as (2) and struck out "its development and"

after "best promotes". Former par. (2) redesignated (3).

Subsec. (d)(3). Pub. L. 104-264, Sec. 401(a)(1)(A), (2)(B),

redesignated par. (2) as (3) and substituted "encouraging and

developing civil aeronautics, including new aviation technology"

for "promoting, encouraging, and developing civil aeronautics".

Former par. (3) redesignated (4).

Subsec. (d)(4) to (7). Pub. L. 104-264, Sec. 401(a)(1)(A),

redesignated pars. (3) to (6) as (4) to (7), respectively.

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-181 applicable only to fiscal years

beginning after Sept. 30, 1999, see section 3 of Pub. L. 106-181,

set out as a note under section 106 of this title.

EFFECTIVE DATE OF 1996 AMENDMENT

Except as otherwise specifically provided, amendment by Pub. L.

104-264 applicable only to fiscal years beginning after Sept. 30,

1996, and not to be construed as affecting funds made available for

a fiscal year ending before Oct. 1, 1996, see section 3 of Pub. L.

104-264, set out as a note under section 106 of this title.

SHORT TITLE OF 2002 AMENDMENT

Pub. L. 107-296, title XIV, Sec. 1401, Nov. 25, 2002, 116 Stat.

2300, provided that: "This title [enacting section 44921 of this

title and section 513 of Title 6, Domestic Security, amending

sections 44903 and 44918 of this title, amending provisions set out

as a note under section 114 of this title, and repealing provisions

set out as a note under section 44903 of this title] may be cited

as the 'Arming Pilots Against Terrorism Act'."

SHORT TITLE OF 2001 AMENDMENT

Pub. L. 107-71, Sec. 1, Nov. 19, 2001, 115 Stat. 597, provided

that: "This Act [see Tables for classification] may be cited as the

'Aviation and Transportation Security Act'."

SHORT TITLE OF 2000 AMENDMENTS

Pub. L. 106-528, Sec. 1, Nov. 22, 2000, 114 Stat. 2517, provided

that: "This Act [amending sections 106, 41104, 44903, 44935, and

44936 of this title, enacting provisions set out as notes under

sections 106, 44903, and 44936 of this title, and amending

provisions set out as notes under sections 40128 and 47501 of this

title] may be cited as the 'Airport Security Improvement Act of

2000'."

Pub. L. 106-181, Sec. 1(a), Apr. 5, 2000, 114 Stat. 61, provided

that: "This Act [see Tables for classification] may be cited as the

'Wendell H. Ford Aviation Investment and Reform Act for the 21st

Century'."

SHORT TITLE OF 1999 AMENDMENT

Pub. L. 106-6, Sec. 1, Mar. 31, 1999, 113 Stat. 10, provided

that: "This Act [amending sections 106, 44310, 47104, 47115 to

47117, 48101, and 48103 of this title] may be cited as the 'Interim

Federal Aviation Administration Authorization Act'."

SHORT TITLE OF 1998 AMENDMENT

Pub. L. 105-155, Sec. 1, Feb. 11, 1998, 112 Stat. 5, provided

that: "This Act [amending section 48102 of this title and enacting

provisions set out as a note under section 48102 of this title] may

be cited as the 'FAA Research, Engineering, and Development

Authorization Act of 1998'."

SHORT TITLE OF 1997 AMENDMENT

Pub. L. 105-137, Sec. 1, Dec. 2, 1997, 111 Stat. 2640, provided

that: "This Act [amending sections 40102, 44302, 44305, 44306,

44308, and 44310 of this title and enacting provisions set out as a

note under section 44310 of this title] may be cited as the

'Aviation Insurance Reauthorization Act of 1997'."

SHORT TITLE OF 1996 AMENDMENT

Section 1(a) of Pub. L. 104-264 provided that: "This Act [see

Tables for classification] may be cited as the 'Federal Aviation

Reauthorization Act of 1996'."

Section 201 of title II of Pub. L. 104-264 provided that: "This

title [enacting sections 40121, 40122, 45301, 45303, 48111, and

48201 of this title, amending sections 106 and 41742 of this title,

renumbering section 45303 of this title as section 45304, repealing

former section 45301 of this title, and enacting provisions set out

as notes under this section and sections 106, 40110, and 41742 of

this title] may be cited as the 'Air Traffic Management System

Performance Improvement Act of 1996'."

Section 278(a) of Pub. L. 104-264 provided that: "This section

[amending section 41742 of this title and enacting provisions set

out as a note under section 41742 of this title] may be cited as

the 'Rural Air Service Survival Act'."

Section 501 of title V of Pub. L. 104-264 provided that: "This

title [amending sections 30305, 44936, and 46301 of this title and

enacting provisions set out as notes under sections 30305 and 44935

of this title] may be cited as the 'Pilot Records Improvement Act

of 1996'."

Section 601 of title VI of Pub. L. 104-264 provided that: "This

title [enacting section 44724 of this title] may be cited as the

'Child Pilot Safety Act'."

Section 701 of title VII of Pub. L. 104-264 provided that: "This

title [enacting sections 1136 and 41113 of this title and

provisions set out as notes under section 41113 of this title] may

be cited as the 'Aviation Disaster Family Assistance Act of 1996'."

Section 801 of title VIII of Pub. L. 104-264 provided that: "This

title [enacting section 47133 of this title, amending sections

46301 and 47107 of this title and section 9502 of Title 26,

Internal Revenue Code, and enacting provisions set out as notes

under section 47107 of this title] may be cited as the 'Airport

Revenue Protection Act of 1996'."

Section 1101 of title XI of Pub. L. 104-264 provided that: "This

title [amending sections 44501, 44508, and 48102 of this title] may

be cited as the 'FAA Research, Engineering, and Development

Management Reform Act of 1996'."

SHORT TITLE OF 1994 AMENDMENT

Pub. L. 103-305, Sec. 1(a), Aug. 23, 1994, 108 Stat. 1569,

provided that: "This Act [enacting sections 41311, 41714, 41715,

47129, 47130, and 47509 of this title, amending sections 106,

10521, 11501, 40102, 40113, 40116, 40117, 41713, 41734, 44502,

44505, 44938, 45301, 46301, 47101, 47102, 47104 to 47107, 47109 to

47111, 47115, 47117 to 47119, 47504, 48101 to 48104, and 48108 of

this title and section 9502 of Title 26, Internal Revenue Code,

renumbering former section 47129 of this title as section 47131 of

this title, enacting provisions set out as notes under this section

and sections 10521, 11501, 40102, 40105, 40117, 41311, 41715,

44502, 45102, 47101, 47107, 47124, and 49101 of this title, and

repealing provisions set out as a note under section 1348 of former

Title 49, Transportation] may be cited as the 'Federal Aviation

Administration Authorization Act of 1994'."

Pub. L. 103-305, title III, Sec. 301, Aug. 23, 1994, 108 Stat.

1589, provided that: "This title [enacting section 47509 of this

title, amending sections 44505 and 48102 of this title, and

enacting provisions set out as notes under this section and section

49101 of this title] may be cited as the 'Federal Aviation

Administration Research, Engineering, and Development Authorization

Act of 1994'."

MAIL AND FREIGHT WAIVERS

Pub. L. 107-71, title I, Sec. 127, Nov. 19, 2001, 115 Stat. 632,

provided that:

"(a) In General. - During a national emergency affecting air

transportation or intrastate air transportation, the Secretary of

Transportation, after consultation with the Transportation Security

Oversight Board, may grant a complete or partial waiver of any

restrictions on the carriage by aircraft of freight, mail,

emergency medical supplies, personnel, or patients on aircraft,

imposed by the Department of Transportation (or other Federal

agency or department) that would permit such carriage of freight,

mail, emergency medical supplies, personnel, or patients on

flights, to, from, or within a State if the Secretary determines

that -

"(1) extraordinary air transportation needs or concerns exist;

and

"(2) the waiver is in the public interest, taking into

consideration the isolation of and dependence on air

transportation of the State.

"(b) Limitations. - The Secretary may impose reasonable

limitations on any such waiver."

AIR CARRIERS REQUIRED TO HONOR TICKETS FOR SUSPENDED SERVICE

Pub. L. 107-71, title I, Sec. 145, Nov. 19, 2001, 115 Stat. 645,

provided that:

"(a) In General. - Each air carrier that provides scheduled air

transportation on a route shall provide, to the extent practicable,

air transportation to passengers ticketed for air transportation on

that route by any other air carrier that suspends, interrupts, or

discontinues air passenger service on the route by reason of

insolvency or bankruptcy of the other air carrier.

"(b) Passenger Obligation. - An air carrier is not required to

provide air transportation under subsection (a) to a passenger

unless that passenger makes alternative arrangements with the air

carrier for such transportation within 60 days after the date on

which that passenger's air transportation was suspended,

interrupted, or discontinued (without regard to the originally

scheduled travel date on the ticket).

"(c) Sunset. - This section does not apply to air transportation

the suspension, interruption, or discontinuance of which occurs

more than 18 months after the date of enactment of this Act [Nov.

19, 2001]."

RELATIONSHIP OF ELIGIBLE CRIME VICTIM COMPENSATION PROGRAMS TO

SEPTEMBER 11TH VICTIM COMPENSATION FUND

Pub. L. 107-56, title VI, Sec. 622(e)(2), Oct. 26, 2001, 115

Stat. 372, provided that: "With respect to any compensation payable

under title IV of Public Law 107-42 [set out as a note below], the

failure of a crime victim compensation program, after the effective

date of final regulations issued pursuant to section 407 of Public

Law 107-42, to provide compensation otherwise required pursuant to

section 1403 of the Victims of Crime Act of 1984 (42 U.S.C. 10602)

shall not render that program ineligible for future grants under

the Victims of Crime Act of 1984 [42 U.S.C. 10601 et seq.]."

AIR TRANSPORTATION SAFETY AND SYSTEM STABILIZATION

Pub. L. 107-42, Sept. 22, 2001, 115 Stat. 230, as amended by Pub.

L. 107-71, title I, Sec. 124(a), (c), (d), title II, Sec. 201, Nov.

19, 2001, 115 Stat. 631, 645; Pub. L. 107-134, title I, Sec.

114(a), Jan. 23, 2002, 115 Stat. 2435; Pub. L. 107-296, title VIII,

Sec. 890, title XII, Sec. 1201(2), Nov. 25, 2002, 116 Stat. 2251,

2286, provided that:

"SECTION 1. SHORT TITLE.

"This Act may be cited as the 'Air Transportation Safety and

System Stabilization Act'.

"TITLE I - AIRLINE STABILIZATION

"SEC. 101. AVIATION DISASTER RELIEF.

"(a) In General. - Notwithstanding any other provision of law,

the President shall take the following actions to compensate air

carriers for losses incurred by the air carriers as a result of the

terrorist attacks on the United States that occurred on September

11, 2001:

"(1) Subject to such terms and conditions as the President

deems necessary, issue Federal credit instruments to air carriers

that do not, in the aggregate, exceed $10,000,000,000 and provide

the subsidy amounts necessary for such instruments in accordance

with the provisions of the Federal Credit Reform Act of 1990 (2

U.S.C. 661 et seq.).

"(2) Compensate air carriers in an aggregate amount equal to

$5,000,000,000 for -

"(A) direct losses incurred beginning on September 11, 2001,

by air carriers as a result of any Federal ground stop order

issued by the Secretary of Transportation or any subsequent

order which continues or renews such a stoppage; and

"(B) the incremental losses incurred beginning September 11,

2001, and ending December 31, 2001, by air carriers as a direct

result of such attacks.

"(b) Emergency Designation. - Congress designates the amount of

new budget authority and outlays in all fiscal years resulting from

this title as an emergency requirement pursuant to section 252(e)

of the Balanced Budget and Emergency Deficit Control Act of 1985 (2

U.S.C. 901(e)). Such amount shall be available only to the extent

that a request, that includes designation of such amount as an

emergency requirement as defined in such Act [see Short Title note

set out under section 900 of Title 2, The Congress], is transmitted

by the President to Congress.

"SEC. 102. AIR TRANSPORTATION STABILIZATION BOARD.

"(a) Definitions. - In this section, the following definitions

apply:

"(1) Board. - The term 'Board' means the Air Transportation

Stabilization Board established under subsection (b).

"(2) Financial obligation. - The term 'financial obligation'

means any note, bond, debenture, or other debt obligation issued

by an obligor in connection with financing under this section and

section 101(a)(1).

"(3) Lender. - The term 'lender' means any non-Federal

qualified institutional buyer (as defined by section 230.144A(a)

of title 17, Code of Federal Regulations (or any successor

regulation) known as Rule 144A(a) of the Securities and Exchange

Commission and issued under the Security Act of 1933 [probably

should be Securities Act of 1933, 15 U.S.C. 77a et seq.][)],

including -

"(A) a qualified retirement plan (as defined in section

4974(c) of the Internal Revenue Code of 1986 (26 U.S.C.

4974(c))[)] that is a qualified institutional buyer; and

"(B) a governmental plan (as defined in section 414(d) of the

Internal Revenue Code of 1986 (26 U.S.C. 414(d))[)] that is a

qualified institutional buyer.

"(4) Obligor. - The term 'obligor' means a party primarily

liable for payment of the principal of or interest on a Federal

credit instrument, which party may be a corporation, partnership,

joint venture, trust, or governmental entity, agency, or

instrumentality.

"(b) Air Transportation Stabilization Board. -

"(1) Establishment. - There is established a board (to be known

as the 'Air Transportation Stabilization Board') to review and

decide on applications for Federal credit instruments under

section 101(a)(1).

"(2) Composition. - The Board shall consist of -

"(A) the Secretary of Transportation or the designee of the

Secretary;

"(B) the Chairman of the Board of Governors of the Federal

Reserve System, or the designee of the Chairman, who shall be

the Chair of the Board;

"(C) the Secretary of the Treasury or the designee of the

Secretary; and

"(D) the Comptroller General of the United States, or the

designee of the Comptroller General, as a nonvoting member of

the Board.

"(c) Federal Credit Instruments. -

"(1) In general. - The Board may enter into agreements with 1

or more obligors to issue Federal credit instruments under

section 101(a)(1) if the Board determines, in its discretion,

that -

"(A) the obligor is an air carrier for which credit is not

reasonably available at the time of the transaction;

"(B) the intended obligation by the obligor is prudently

incurred; and

"(C) such agreement is a necessary part of maintaining a

safe, efficient, and viable commercial aviation system in the

United States.

"(2) Terms and limitations. -

"(A) Forms; terms and conditions. - A Federal credit

instrument shall be issued under section 101(a)(1) in such form

and on such terms and conditions and contain such covenants,

representations, warranties, and requirements (including

requirements for audits) as the Board determines appropriate.

"(B) Procedures. - Not later than 14 days after the date of

enactment of this Act [Sept. 22, 2001], the Director of the

Office of Management and Budget shall issue regulations setting

forth procedures for application and minimum requirements,

which may be supplemented by the Board in its discretion, for

the issuance of Federal credit instruments under section

101(a)(1).

"(d) Financial Protection of Government. -

"(1) In general. - To the extent feasible and practicable, the

Board shall ensure that the Government is compensated for the

risk assumed in making guarantees under this title.

"(2) Government participation in gains. - To the extent to

which any participating corporation accepts financial assistance,

in the form of accepting the proceeds of any loans guaranteed by

the Government under this title, the Board is authorized to enter

into contracts under which the Government, contingent on the

financial success of the participating corporation, would

participate in the gains of the participating corporation or its

security holders through the use of such instruments as warrants,

stock options, common or preferred stock, or other appropriate

equity instruments.

"(3) Deposit in treasury. - All amounts collected by the

Secretary of the Treasury under this subsection shall be

deposited in the Treasury as miscellaneous receipts.

"SEC. 103. SPECIAL RULES FOR COMPENSATION.

"(a) Documentation. - Subject to subsection (b), the amount of

compensation payable to an air carrier under section 101(a)(2) may

not exceed the amount of losses described in section 101(a)(2) that

the air carrier demonstrates to the satisfaction of the President,

using sworn financial statements or other appropriate data, that

the air carrier incurred. The Secretary of Transportation and the

Comptroller General of the United States may audit such statements

and may request any information that the Secretary and the

Comptroller General deems necessary to conduct such audit.

"(b) Maximum Amount of Compensation Payable Per Air Carrier. -

The maximum total amount of compensation payable to an air carrier

under section 101(a)(2) may not exceed the lesser of -

"(1) the amount of such air carrier's direct and incremental

losses described in section 101(a)(2); or

"(2) in the case of -

"(A) flights involving passenger-only or combined passenger

and cargo transportation, the product of -

"(i) $4,500,000,000; and

"(ii) the ratio of -

"(I) the available seat miles of the air carrier for the month

of August 2001 as reported to the Secretary; to

"(II) the total available seat miles of all such air carriers

for such month as reported to the Secretary; and

"(B) flights involving cargo-only transportation, the product

of -

"(i) $500,000,000; and

"(ii) the ratio of -

"(I) the revenue ton miles or other auditable measure of the

air carrier for cargo for the latest quarter for which data

is available as reported to the Secretary; to

"(II) the total revenue ton miles or other auditable measure

of all such air carriers for cargo for such quarter as

reported to the Secretary.

"(c) Payments. - The President may provide compensation to air

carriers under section 101(a)(2) in 1 or more payments up to the

amount authorized by this title.

"(d) Compensation for Certain Air Carriers. -

"(1) Set-aside. - The President may set aside a portion of the

amount of compensation payable to air carriers under section

101(a)(2) to provide compensation to classes of air carriers,

such as air tour operators and air ambulances (including

hospitals operating air ambulances) for whom the application of a

distribution formula containing available seat miles as a factor

would inadequately reflect their share of direct and incremental

losses. The President shall reduce the $4,500,000,000 specified

in subsection (b)(2)(A)(i) by the amount set aside under this

subsection.

"(2) Distribution of amounts. - The President shall distribute

the amount set aside under this subsection proportionally among

such air carriers based on an appropriate auditable measure, as

determined by the President.

"SEC. 104. LIMITATION ON CERTAIN EMPLOYEE COMPENSATION.

"(a) In General. - The President may only issue a Federal credit

instrument under section 101(a)(1) to an air carrier after the air

carrier enters into a legally binding agreement with the President

that, during the 2-year period beginning September 11, 2001, and

ending September 11, 2003, no officer or employee of the air

carrier whose total compensation exceeded $300,000 in calendar year

2000 (other than an employee whose compensation is determined

through an existing collective bargaining agreement entered into

prior to September 11, 2001) -

"(1) will receive from the air carrier total compensation which

exceeds, during any 12 consecutive months of such 2-year period,

the total compensation received by the officer or employee from

the air carrier in calendar year 2000; and

"(2) will receive from the air carrier severance pay or other

benefits upon termination of employment with the air carrier

which exceeds twice the maximum total compensation received by

the officer or employee from the air carrier in calendar year

2000.

"(b) Total Compensation Defined. - In this section, the term

'total compensation' includes salary, bonuses, awards of stock, and

other financial benefits provided by an air carrier to an officer

or employee of the air carrier.

"SEC. 105. CONTINUATION OF CERTAIN AIR SERVICE.

"(a) Action of Secretary. - The Secretary of Transportation

should take appropriate action to ensure that all communities that

had scheduled air service before September 11, 2001, continue to

receive adequate air transportation service and that essential air

service to small communities continues without interruption.

"(b) Essential Air Service. - There is authorized to be

appropriated to the Secretary to carry out the essential air

service program under subchapter II of chapter 417 of title 49,

United States Code, $120,000,000 for fiscal year 2002.

"(c) Secretarial Oversight. -

"(1) In general. - Notwithstanding any other provision of law,

the Secretary is authorized to require an air carrier receiving

direct financial assistance under this Act to maintain scheduled

air service to any point served by that carrier before September

11, 2001.

"(2) Agreements. - In applying paragraph (1), the Secretary may

require air carriers receiving direct financial assistance under

this Act to enter into agreements which will ensure, to the

maximum extent practicable, that all communities that had

scheduled air service before September 11, 2001, continue to

receive adequate air transportation service.

"SEC. 106. REPORTS.

"(a) Report. - Not later than February 1, 2002, the President

shall transmit to the Committee on Transportation and

Infrastructure, the Committee on Appropriations, and the Committee

on the Budget of the House of Representatives and the Committee on

Commerce, Science, and Transportation, the Committee on

Appropriations, and the Committee on the Budget of the Senate a

report on the financial status of the air carrier industry and the

amounts of assistance provided under this title to each air

carrier.

"(b) Update. - Not later than the last day of the 7-month period

following the date of enactment of this Act [Sept. 22, 2001], the

President shall update and transmit the report to the Committees.

"SEC. 107. DEFINITIONS.

"In this title, the following definitions apply:

"(1) Air carrier. - The term 'air carrier' has the meaning such

term has under section 40102 of title 49, United States Code.

"(2) Federal credit instrument. - The term 'Federal credit

instrument' means any guarantee or other pledge by the Board

issued under section 101(a)(1) to pledge the full faith and

credit of the United States to pay all or part of any of the

principal of and interest on a loan or other debt obligation

issued by an obligor and funded by a lender.

"(3) Incremental loss. - The term 'incremental loss' does not

include any loss that the President determines would have been

incurred if the terrorist attacks on the United States that

occurred on September 11, 2001, had not occurred.

"TITLE II - AVIATION INSURANCE

"SEC. 201. DOMESTIC INSURANCE AND REIMBURSEMENT OF INSURANCE

COSTS.

"(a) In General. - [Amended section 44302 of this title.]

"(b) Coverage. -

"(1) In general. - [Amended section 44303 of this title.]

"(2) [Transferred to section 44303(b) of this title.]

"(c) Reinsurance. - [Amended section 44304 of this title.]

"(d) Premiums. - [Amended section 44306 of this title.]

"(e) Conforming Amendment. - [Amended section 44305(b) of this

title.]

"SEC. 202. EXTENSION OF PROVISIONS TO VENDORS, AGENTS, AND

SUBCONTRACTORS OF AIR CARRIERS.

"Notwithstanding any other provision of this title, the Secretary

may extend any provision of chapter 443 of title 49, United States

Code, as amended by this title, and the provisions of this title,

to vendors, agents, and subcontractors of air carriers. For the

180-day period beginning on the date of enactment of this Act

[Sept. 22, 2001], the Secretary may extend or amend any such

provisions so as to ensure that the entities referred to in the

preceding sentence are not responsible in cases of acts of

terrorism for losses suffered by third parties that exceed the

amount of such entities' liability coverage, as determined by the

Secretary.

"TITLE III - TAX PROVISIONS

"SEC. 301. EXTENSION OF DUE DATE FOR EXCISE TAX DEPOSITS;

TREATMENT OF LOSS COMPENSATION.

"(a) Extension of Due Date for Excise Tax Deposits. -

"(1) In general. - In the case of an eligible air carrier, any

airline-related deposit required under section 6302 of the

Internal Revenue Code of 1986 [26 U.S.C. 6302] to be made after

September 10, 2001, and before November 15, 2001, shall be

treated for purposes of such Code [26 U.S.C. 1 et seq.] as timely

made if such deposit is made on or before November 15, 2001. If

the Secretary of the Treasury so prescribes, the preceding

sentence shall be applied by substituting for 'November 15, 2001'

each place it appears -

"(A) 'January 15, 2002'; or

"(B) such earlier date after November 15, 2001, as such

Secretary may prescribe.

"(2) Eligible air carrier. - For purposes of this subsection,

the term 'eligible air carrier' means any domestic corporation

engaged in the trade or business of transporting (for hire)

persons by air if such transportation is available to the general

public.

"(3) Airline-related deposit. - For purposes of this

subsection, the term 'airline-related deposit' means any deposit

of taxes imposed by subchapter C of chapter 33 of such Code [26

U.S.C. 4261 et seq.] (relating to transportation by air).

"(b) Treatment of Loss Compensation. - Nothing in any provision

of law shall be construed to exclude from gross income under the

Internal Revenue Code of 1986 any compensation received under

section 101(a)(2) of this Act.

"TITLE IV - VICTIM COMPENSATION

"SEC. 401. SHORT TITLE.

"This title may be cited as the 'September 11th Victim

Compensation Fund of 2001'.

"SEC. 402. DEFINITIONS.

"In this title, the following definitions apply:

"(1) Air carrier. - The term 'air carrier' means a citizen of

the United States undertaking by any means, directly or

indirectly, to provide air transportation and includes employees

and agents (including persons engaged in the business of

providing air transportation security and their affiliates) of

such citizen. For purposes of the preceding sentence, the term

'agent', as applied to persons engaged in the business of

providing air transportation security, shall only include persons

that have contracted directly with the Federal Aviation

Administration on or after and commenced services no later than

February 17, 2002, to provide such security, and had not been or

are not debarred for any period within 6 months from that date.

"(2) Air transportation. - The term 'air transportation' means

foreign air transportation, interstate air transportation, or the

transportation of mail by aircraft.

"(3) Aircraft manufacturer. - The term 'aircraft manufacturer'

means any entity that manufactured the aircraft or any parts or

components of the aircraft involved in the terrorist related

aircraft crashes of September 11, 2001, including employees and

agents of that entity.

"(4) Airport sponsor. - The term 'airport sponsor' means the

owner or operator of an airport (as defined in section 40102 of

title 49, United States Code).

"(5) Claimant. - The term 'claimant' means an individual filing

a claim for compensation under section 405(a)(1).

"(6) Collateral source. - The term 'collateral source' means

all collateral sources, including life insurance, pension funds,

death benefit programs, and payments by Federal, State, or local

governments related to the terrorist-related aircraft crashes of

September 11, 2001.

"(7) Economic loss. - The term 'economic loss' means any

pecuniary loss resulting from harm (including the loss of

earnings or other benefits related to employment, medical expense

loss, replacement services loss, loss due to death, burial costs,

and loss of business or employment opportunities) to the extent

recovery for such loss is allowed under applicable State law.

"(8) Eligible individual. - The term 'eligible individual'

means an individual determined to be eligible for compensation

under section 405(c).

"(9) Noneconomic losses. - The term 'noneconomic losses' means

losses for physical and emotional pain, suffering, inconvenience,

physical impairment, mental anguish, disfigurement, loss of

enjoyment of life, loss of society and companionship, loss of

consortium (other than loss of domestic service), hedonic

damages, injury to reputation, and all other nonpecuniary losses

of any kind or nature.

"(10) Special master. - The term 'Special Master' means the

Special Master appointed under section 404(a).

"SEC. 403. PURPOSE.

"It is the purpose of this title to provide compensation to any

individual (or relatives of a deceased individual) who was

physically injured or killed as a result of the terrorist-related

aircraft crashes of September 11, 2001.

"SEC. 404. ADMINISTRATION.

"(a) In General. - The Attorney General, acting through a Special

Master appointed by the Attorney General, shall -

"(1) administer the compensation program established under this

title;

"(2) promulgate all procedural and substantive rules for the

administration of this title; and

"(3) employ and supervise hearing officers and other

administrative personnel to perform the duties of the Special

Master under this title.

"(b) Authorization of Appropriations. - There are authorized to

be appropriated such sums as may be necessary to pay the

administrative and support costs for the Special Master in carrying

out this title.

"SEC. 405. DETERMINATION OF ELIGIBILITY FOR COMPENSATION.

"(a) Filing of Claim. -

"(1) In general. - A claimant may file a claim for compensation

under this title with the Special Master. The claim shall be on

the form developed under paragraph (2) and shall state the

factual basis for eligibility for compensation and the amount of

compensation sought.

"(2) Claim form. -

"(A) In general. - The Special Master shall develop a claim

form that claimants shall use when submitting claims under

paragraph (1). The Special Master shall ensure that such form

can be filed electronically, if determined to be practicable.

"(B) Contents. - The form developed under subparagraph (A)

shall request -

"(i) information from the claimant concerning the physical

harm that the claimant suffered, or in the case of a claim

filed on behalf of a decedent information confirming the

decedent's death, as a result of the terrorist-related

aircraft crashes of September 11, 2001;

"(ii) information from the claimant concerning any possible

economic and noneconomic losses that the claimant suffered as

a result of such crashes; and

"(iii) information regarding collateral sources of

compensation the claimant has received or is entitled to

receive as a result of such crashes.

"(3) Limitation. - No claim may be filed under paragraph (1)

after the date that is 2 years after the date on which

regulations are promulgated under section 407.

"(b) Review and Determination. -

"(1) Review. - The Special Master shall review a claim

submitted under subsection (a) and determine -

"(A) whether the claimant is an eligible individual under

subsection (c);

"(B) with respect to a claimant determined to be an eligible

individual -

"(i) the extent of the harm to the claimant, including any

economic and noneconomic losses; and

"(ii) the amount of compensation to which the claimant is

entitled based on the harm to the claimant, the facts of the

claim, and the individual circumstances of the claimant.

"(2) Negligence. - With respect to a claimant, the Special

Master shall not consider negligence or any other theory of

liability.

"(3) Determination. - Not later than 120 days after that date

on which a claim is filed under subsection (a), the Special

Master shall complete a review, make a determination, and provide

written notice to the claimant, with respect to the matters that

were the subject of the claim under review. Such a determination

shall be final and not subject to judicial review.

"(4) Rights of claimant. - A claimant in a review under

paragraph (1) shall have -

"(A) the right to be represented by an attorney;

"(B) the right to present evidence, including the

presentation of witnesses and documents; and

"(C) any other due process rights determined appropriate by

the Special Master.

"(5) No punitive damages. - The Special Master may not include

amounts for punitive damages in any compensation paid under a

claim under this title.

"(6) Collateral compensation. - The Special Master shall reduce

the amount of compensation determined under paragraph (1)(B)(ii)

by the amount of the collateral source compensation the claimant

has received or is entitled to receive as a result of the

terrorist-related aircraft crashes of September 11, 2001.

"(c) Eligibility. -

"(1) In general. - A claimant shall be determined to be an

eligible individual for purposes of this subsection if the

Special Master determines that such claimant -

"(A) is an individual described in paragraph (2); and

"(B) meets the requirements of paragraph (3).

"(2) Individuals. - A claimant is an individual described in

this paragraph if the claimant is -

"(A) an individual who -

"(i) was present at the World Trade Center, (New York, New

York), the Pentagon (Arlington, Virginia), or the site of the

aircraft crash at Shanksville, Pennsylvania at the time, or

in the immediate aftermath, of the terrorist-related aircraft

crashes of September 11, 2001; and

"(ii) suffered physical harm or death as a result of such

an air crash;

"(B) an individual who was a member of the flight crew or a

passenger on American Airlines flight 11 or 77 or United

Airlines flight 93 or 175, except that an individual identified

by the Attorney General to have been a participant or

conspirator in the terrorist-related aircraft crashes of

September 11, 2001, or a representative of such individual

shall not be eligible to receive compensation under this title;

or

"(C) in the case of a decedent who is an individual described

in subparagraph (A) or (B), the personal representative of the

decedent who files a claim on behalf of the decedent.

"(3) Requirements. -

"(A) Single claim. - Not more than one claim may be submitted

under this title by an individual or on behalf of a deceased

individual.

"(B) Limitation on civil action. -

"(i) In general. - Upon the submission of a claim under

this title, the claimant waives the right to file a civil

action (or to be a party to an action) in any Federal or

State court for damages sustained as a result of the

terrorist-related aircraft crashes of September 11, 2001. The

preceding sentence does not apply to a civil action to

recover collateral source obligations, or to a civil action

against any person who is a knowing participant in any

conspiracy to hijack any aircraft or commit any terrorist

act.

"(ii) Pending actions. - In the case of an individual who

is a party to a civil action described in clause (i), such

individual may not submit a claim under this title unless

such individual withdraws from such action by the date that

is 90 days after the date on which regulations are

promulgated under section 407.

"SEC. 406. PAYMENTS TO ELIGIBLE INDIVIDUALS.

"(a) In General. - Not later than 20 days after the date on which

a determination is made by the Special Master regarding the amount

of compensation due a claimant under this title, the Special Master

shall authorize payment to such claimant of the amount determined

with respect to the claimant.

"(b) Payment Authority. - This title constitutes budget authority

in advance of appropriations Acts and represents the obligation of

the Federal Government to provide for the payment of amounts for

compensation under this title.

"(c) Additional Funding. -

"(1) In general. - The Attorney General is authorized to accept

such amounts as may be contributed by individuals, business

concerns, or other entities to carry out this title, under such

terms and conditions as the Attorney General may impose.

"(2) Use of separate account. - In making payments under this

section, amounts contained in any account containing funds

provided under paragraph (1) shall be used prior to using

appropriated amounts.

"SEC. 407. REGULATIONS.

"Not later than 90 days after the date of enactment of this Act

[Sept. 22, 2001], the Attorney General, in consultation with the

Special Master, shall promulgate regulations to carry out this

title, including regulations with respect to -

"(1) forms to be used in submitting claims under this title;

"(2) the information to be included in such forms;

"(3) procedures for hearing and the presentation of evidence;

"(4) procedures to assist an individual in filing and pursuing

claims under this title; and

"(5) other matters determined appropriate by the Attorney

General.

"SEC. 408. LIMITATION ON LIABILITY.

"(a) In General. -

"(1) Liability limited to insurance coverage. - Notwithstanding

any other provision of law, liability for all claims, whether for

compensatory or punitive damages or for contribution or

indemnity, arising from the terrorist-related aircraft crashes of

September 11, 2001, against an air carrier, aircraft

manufacturer, airport sponsor, or person with a property interest

in the World Trade Center, on September 11, 2001, whether fee

simple, leasehold or easement, direct or indirect, or their

directors, officers, employees, or agents, shall not be in an

amount greater than the limits of liability insurance coverage

maintained by that air carrier, aircraft manufacturer, airport

sponsor, or person.

"(2) Willful defaults on rebuilding obligation. - Paragraph (1)

does not apply to any such person with a property interest in the

World Trade Center if the Attorney General determines, after

notice and an opportunity for a hearing on the record, that the

person has defaulted willfully on a contractual obligation to

rebuild, or assist in the rebuilding of, the World Trade Center.

"(3) Limitations on liability for New York City. - Liability

for all claims, whether for compensatory or punitive damages or

for contribution or indemnity arising from the terrorist-related

aircraft crashes of September 11, 2001, against the City of New

York shall not exceed the greater of the city's insurance

coverage or $350,000,000. If a claimant who is eligible to seek

compensation under section 405 of this Act, submits a claim under

section 405, the claimant waives the right to file a civil action

(or to be a party to an action) in any Federal or State court for

damages sustained as a result of the terrorist-related aircraft

crashes of September 11, 2001, including any such action against

the City of New York. The preceding sentence does not apply to a

civil action to recover collateral source obligations.

"(b) Federal Cause of Action. -

"(1) Availability of action. - There shall exist a Federal

cause of action for damages arising out of the hijacking and

subsequent crashes of American Airlines flights 11 and 77, and

United Airlines flights 93 and 175, on September 11, 2001.

Notwithstanding section 40120(c) of title 49, United States Code,

this cause of action shall be the exclusive remedy for damages

arising out of the hijacking and subsequent crashes of such

flights.

"(2) Substantive law. - The substantive law for decision in any

such suit shall be derived from the law, including choice of law

principles, of the State in which the crash occurred unless such

law is inconsistent with or preempted by Federal law.

"(3) Jurisdiction. - The United States District Court for the

Southern District of New York shall have original and exclusive

jurisdiction over all actions brought for any claim (including

any claim for loss of property, personal injury, or death)

resulting from or relating to the terrorist-related aircraft

crashes of September 11, 2001.

"(c) Exclusion. - Nothing in this section shall in any way limit

any liability of any person who is a knowing participant in any

conspiracy to hijack any aircraft or commit any terrorist act.

Subsections (a) and (b) do not apply to civil actions to recover

collateral source obligations.

"SEC. 409. RIGHT OF SUBROGATION.

"The United States shall have the right of subrogation with

respect to any claim paid by the United States under this title,

subject to the limitations described in section 408.

"TITLE V - AIR TRANSPORTATION SAFETY

"SEC. 501. INCREASED AIR TRANSPORTATION SAFETY.

"Congress affirms the President's decision to spend

$3,000,000,000 on airline safety and security in conjunction with

this Act in order to restore public confidence in the airline

industry.

"SEC. 502. CONGRESSIONAL COMMITMENT.

"Congress is committed to act expeditiously, in consultation with

the Secretary of Transportation, to strengthen airport security and

take further measures to enhance the security of air travel.

"TITLE VI - SEPARABILITY

"SEC. 601. SEPARABILITY.

"If any provision of this Act (including any amendment made by

this Act [amending sections 44302 to 44306 of this title]) or the

application thereof to any person or circumstance is held invalid,

the remainder of this Act (including any amendment made by this

Act) and the application thereof to other persons or circumstances

shall not be affected thereby."

[Pub. L. 107-134, title I, Sec. 114(b), Jan. 23, 2002, 115 Stat.

2436, provided that: "The amendment made by this section [amending

Pub. L. 107-42, set out above] shall take effect as if included in

section 301 of the Air Transportation Safety and System

Stabilization Act (Public Law 107-42)."]

[Memorandum of President of the United States, Sept. 25, 2001, 66

F.R. 49507, delegated to the Secretary of Transportation the

authority vested in the President under section 101(a)(2) of Pub.

L. 107-42, set out above, to compensate air carriers for direct and

incremental losses they incurred from the terrorist attacks of

Sept. 11, 2001, and any resulting ground stop order.]

INDEPENDENT STUDY OF FAA COSTS AND ALLOCATIONS

Pub. L. 106-181, title III, Sec. 309, Apr. 5, 2000, 114 Stat.

127, provided that:

"(a) Independent Assessment. -

"(1) In general. - The Inspector General of the Department of

Transportation shall conduct the assessments described in this

section. To conduct the assessments, the Inspector General may

use the staff and resources of the Inspector General or contract

with one or more independent entities.

"(2) Assessment of adequacy and accuracy of faa cost data and

attributions. -

"(A) In general. - The Inspector General shall conduct an

assessment to ensure that the method for calculating the

overall costs of the Federal Aviation Administration and

attributing such costs to specific users is appropriate,

reasonable, and understandable to the users.

"(B) Components. - In conducting the assessment under this

paragraph, the Inspector General shall assess the following:

"(i) The Administration's cost input data, including the

reliability of the Administration's source documents and the

integrity and reliability of the Administration's data

collection process.

"(ii) The Administration's system for tracking assets.

"(iii) The Administration's bases for establishing asset

values and depreciation rates.

"(iv) The Administration's system of internal controls for

ensuring the consistency and reliability of reported data.

"(v) The Administration's definition of the services to

which the Administration ultimately attributes its costs.

"(vi) The cost pools used by the Administration and the

rationale for and reliability of the bases which the

Administration proposes to use in allocating costs of

services to users.

"(C) Requirements for assessment of cost pools. - In carrying

out subparagraph (B)(vi), the Inspector General shall -

"(i) review costs that cannot reliably be attributed to

specific Administration services or activities (called

'common and fixed costs' in the Administration Cost

Allocation Study) and consider alternative methods for

allocating such costs; and

"(ii) perform appropriate tests to assess relationships

between costs in the various cost pools and activities and

services to which the costs are attributed by the

Administration.

"(3) Cost effectiveness. -

"(A) In general. - The Inspector General shall assess the

progress of the Administration in cost and performance

management, including use of internal and external benchmarking

in improving the performance and productivity of the

Administration.

"(B) Annual reports. - Not later than December 31, 2000, and

annually thereafter until December 31, 2004, the Inspector

General shall transmit to Congress an updated report containing

the results of the assessment conducted under this paragraph.

"(C) Information to be included in faa financial report. -

The Administrator [of the Federal Aviation Administration]

shall include in the annual financial report of the

Administration information on the performance of the

Administration sufficient to permit users and others to make an

informed evaluation of the progress of the Administration in

increasing productivity.

"(b) Funding. - There are authorized to be appropriated such sums

as may be necessary to carry out this section."

PASSENGER CABIN AIR QUALITY

Pub. L. 106-181, title VII, Sec. 725, Apr. 5, 2000, 114 Stat.

166, provided that:

"(a) Study of Air Quality in Passenger Cabins in Commercial

Aircraft. -

"(1) In general. - Not later than 60 days after the date of the

enactment of this Act [Apr. 5, 2000], the Administrator [of the

Federal Aviation Administration] shall arrange for and provide

necessary data to the National Academy of Sciences to conduct a

12-month, independent study of air quality in passenger cabins of

aircraft used in air transportation and foreign air

transportation, including the collection of new data, in

coordination with the Federal Aviation Administration, to

identify contaminants in the aircraft air and develop

recommendations for means of reducing such contaminants.

"(2) Alternative air supply. - The study should examine whether

contaminants would be reduced by the replacement of engine and

auxiliary power unit bleed air with an alternative supply of air

for the aircraft passengers and crew.

"(3) Scope. - The study shall include an assessment and

quantitative analysis of each of the following:

"(A) Contaminants of concern, as determined by the National

Academy of Sciences.

"(B) The systems of air supply on aircraft, including the

identification of means by which contaminants may enter such

systems.

"(C) The toxicological and health effects of the contaminants

of concern, their byproducts, and the products of their

degradation.

"(D) Any contaminant used in the maintenance, operation, or

treatment of aircraft, if a passenger or a member of the air

crew may be directly exposed to the contaminant.

"(E) Actual measurements of the contaminants of concern in

the air of passenger cabins during actual flights in air

transportation or foreign air transportation, along with

comparisons of such measurements to actual measurements taken

in public buildings.

"(4) Provision of Current Data. - The Administrator shall

collect all data of the Federal Aviation Administration that is

relevant to the study and make the data available to the National

Academy of Sciences in order to complete the study.

"(b) Collection of Aircraft Air Quality Data. -

"(1) In general. - The Administrator may consider the

feasibility of using the flight data recording system on aircraft

to monitor and record appropriate data related to air inflow

quality, including measurements of the exposure of persons aboard

the aircraft to contaminants during normal aircraft operation and

during incidents involving air quality problems.

"(2) Passenger cabins. - The Administrator may also consider

the feasibility of using the flight data recording system to

monitor and record data related to the air quality in passengers

cabins of aircraft."

OPERATIONS OF AIR TAXI INDUSTRY

Pub. L. 106-181, title VII, Sec. 735, Apr. 5, 2000, 114 Stat.

171, provided that:

"(a) Study. - The Administrator [of the Federal Aviation

Administration], in consultation with the National Transportation

Safety Board and other interested persons, shall conduct a study of

air taxi operators regulated under part 135 of title 14, Code of

Federal Regulations.

"(b) Contents. - The study shall include an analysis of the size

and type of the aircraft fleet, relevant aircraft equipment, hours

flown, utilization rates, safety record by various categories of

use and aircraft type, sales revenues, and airports served by the

air taxi fleet.

"(c) Report. - Not later than 1 year after the date of the

enactment of this Act [Apr. 5, 2000], the Administrator shall

transmit to Congress a report on the results of the study."

FINDINGS

Section 271 of Pub. L. 104-264 provided that: "Congress finds the

following:

"(1) The Administration [Federal Aviation Administration] is

recognized throughout the world as a leader in aviation safety.

"(2) The Administration certifies aircraft, engines,

propellers, and other manufactured parts.

"(3) The Administration certifies more than 650 training

schools for pilots and nonpilots, more than 4,858 repair

stations, and more than 193 maintenance schools.

"(4) The Administration certifies pilot examiners, who are then

qualified to determine if a person has the skills necessary to

become a pilot.

"(5) The Administration certifies more than 6,000 medical

examiners, each of whom is then qualified to medically certify

the qualifications of pilots and nonpilots.

"(6) The Administration certifies more than 470 airports, and

provides a limited certification for another 205 airports. Other

airports in the United States are also reviewed by the

Administration.

"(7) The Administration each year performs more than 355,000

inspections.

"(8) The Administration issues more than 655,000 pilot's

licenses and more than 560,000 nonpilot's licenses (including

mechanics).

"(9) The Administration's certification means that the product

meets world-wide recognized standards of safety and reliability.

"(10) The Administration's certification means aviation-related

equipment and services meet world-wide recognized standards.

"(11) The Administration's certification is recognized by

governments and businesses throughout the world and as such may

be a valuable element for any company desiring to sell

aviation-related products throughout the world.

"(12) The Administration's certification may constitute a

valuable license, franchise, privilege or benefits for the

holders.

"(13) The Administration also is a major purchaser of

computers, radars, and other systems needed to run the air

traffic control system. The Administration's design, acceptance,

commissioning, or certification of such equipment enables the

private sector to market those products around the world, and as

such confers a benefit on the manufacturer.

"(14) The Administration provides extensive services to public

use aircraft."

PURPOSES

Section 272 of title II of Pub. L. 104-264 provided that: "The

purposes of this subtitle [subtitle C (Secs. 271-278) of title II

of Pub. L. 104-264, enacting sections 45301, 45303, 48111, and

48201 of this title, amending section 41742 of this title,

renumbering section 45303 of this title as section 45304, repealing

former section 45301 of this title, and enacting provisions set out

as notes under this section and section 41742 of this title] are -

"(1) to provide a financial structure for the Administration

[Federal Aviation Administration] so that it will be able to

support the future growth in the national aviation and airport

system;

"(2) to review existing and alternative funding options,

including incentive-based fees for services, and establish a

program to improve air traffic management system performance and

to establish appropriate levels of cost accountability for air

traffic management services provided by the Administration;

"(3) to ensure that any funding will be dedicated solely for

the use of the Administration;

"(4) to authorize the Administration to recover the costs of

its services from those who benefit from, but do not contribute

to, the national aviation system and the services provided by the

Administration;

"(5) to consider a fee system based on the cost or value of the

services provided and other funding alternatives;

"(6) to develop funding options for Congress in order to

provide for the long-term efficient and cost-effective support of

the Administration and the aviation system; and

"(7) to achieve a more efficient and effective Administration

for the benefit of the aviation transportation industry."

INDEPENDENT ASSESSMENT OF FAA FINANCIAL REQUIREMENTS; ESTABLISHMENT

OF NATIONAL CIVIL AVIATION REVIEW COMMISSION

Section 274 of Pub. L. 104-264, as amended by Pub. L. 106-181,

title III, Sec. 307(c)(3), Apr. 5, 2000, 114 Stat. 126, provided

that:

"(a) Independent Assessment. -

"(1) Initiation. - Not later than 30 days after the date of the

enactment of this Act [Oct. 9, 1996], the Administrator [of the

Federal Aviation Administration] shall contract with an entity

independent of the Administration [Federal Aviation

Administration] and the Department of Transportation to conduct a

complete independent assessment of the financial requirements of

the Administration through the year 2002.

"(2) Assessment criteria. - The Administrator shall provide to

the independent entity estimates of the financial requirements of

the Administration for the period described in paragraph (1),

using as a base the fiscal year 1997 appropriation levels

established by Congress. The independent assessment shall be

based on an objective analysis of agency funding needs.

"(3) Certain factors to be taken into account. - The

independent assessment shall take into account all relevant

factors, including -

"(A) anticipated air traffic forecasts;

"(B) other workload measures;

"(C) estimated productivity gains, if any, which contribute

to budgetary requirements;

"(D) the need for programs; and

"(E) the need to provide for continued improvements in all

facets of aviation safety, along with operational improvements

in air traffic control.

"(4) Cost allocation. - The independent assessment shall also

assess the costs to the Administration occasioned by the

provision of services to each segment of the aviation system.

"(5) Deadline. - The independent assessment shall be completed

no later than 90 days after the contract is awarded, and shall be

submitted to the Commission established under subsection (b), the

Secretary [of Transportation], the Secretary of the Treasury, the

Committee on Commerce, Science, and Transportation and the

Committee on Finance of the Senate, and the Committee on

Transportation and Infrastructure and the Committee on Ways and

Means of the House of Representatives.

"(b) National Civil Aviation Review Commission. -

"(1) Establishment. - There is established a commission to be

known as the National Civil Aviation Review Commission

(hereinafter in this section referred to as the 'Commission').

"(2) Membership. - The Commission shall consist of 21 members

to be appointed as follows:

"(A) 13 members to be appointed by the Secretary, in

consultation with the Secretary of the Treasury, from among

individuals who have expertise in the aviation industry and who

are able, collectively, to represent a balanced view of the

issues important to general aviation, major air carriers, air

cargo carriers, regional air carriers, business aviation,

airports, aircraft manufacturers, the financial community,

aviation industry workers, and airline passengers. At least one

member appointed under this subparagraph shall have detailed

knowledge of the congressional budgetary process.

"(B) Two members appointed by the Speaker of the House of

Representatives.

"(C) Two members appointed by the minority leader of the

House of Representatives.

"(D) Two members appointed by the majority leader of the

Senate.

"(E) Two members appointed by the minority leader of the

Senate.

"(3) Task forces. - The Commission shall establish an aviation

funding task force and an aviation safety task force to carry out

the responsibilities of the Commission under this subsection.

"(4) First meeting. - The Commission may conduct its first

meeting as soon as a majority of the members of the Commission

are appointed.

"(5) Hearings and consultation. -

"(A) Hearings. - The Commission shall take such testimony and

solicit and receive such comments from the public and other

interested parties as it considers appropriate, shall conduct 2

public hearings after affording adequate notice to the public

thereof, and may conduct such additional hearings as may be

necessary.

"(B) Consultation. - The Commission shall consult on a

regular and frequent basis with the Secretary, the Secretary of

the Treasury, the Committee on Commerce, Science, and

Transportation and the Committee on Finance of the Senate, and

the Committee on Transportation and Infrastructure and the

Committee on Ways and Means of the House of Representatives.

"(C) FACA not to apply. - The Commission shall not be

considered an advisory committee for purposes of the Federal

Advisory Committee Act (5 U.S.C. App.).

"(6) Duties of aviation funding task force. -

"(A) Report to secretary. -

"(i) In general. - The aviation funding task force

established pursuant to paragraph (3) shall submit a report

setting forth a comprehensive analysis of the

Administration's budgetary requirements through fiscal year

2002, based upon the independent assessment under subsection

(a), that analyzes alternative financing and funding means

for meeting the needs of the aviation system through the year

2002. The task force shall submit a preliminary report of

that analysis to the Secretary not later than 6 months after

the independent assessment is completed under subsection (a).

The Secretary shall provide comments on the preliminary

report to the task force within 30 days after receiving the

report. The task force shall issue a final report of such

comprehensive analysis within 30 days after receiving the

Secretary's comments on its preliminary report.

"(ii) Contents. - The report submitted by the aviation

funding task force under clause (i) -

"(I) shall consider the independent assessment under

subsection (a);

"(II) shall consider estimated cost savings, if any, resulting

from the procurement and personnel reforms included in this

Act [see Tables for classification] or in sections 40110(d)

and 40122(g) of title 49, United States Code, and additional

financial initiatives;

"(III) shall include specific recommendations to Congress on

how the Administration can reduce costs, raise additional

revenue for the support of agency operations, and accelerate

modernization efforts; and

"(IV) shall include a draft bill containing the changes in law

necessary to implement its recommendations.

"(B) Recommendations. - The aviation funding task force shall

make such recommendations under subparagraph (A)(ii)(III) as

the task force deems appropriate. Those recommendations may

include -

"(i) proposals for off-budget treatment of the Airport and

Airway Trust Fund;

"(ii) alternative financing and funding proposals,

including linked financing proposals;

"(iii) modifications to existing levels of Airport and

Airways Trust Fund receipts and taxes for each type of tax;

"(iv) establishment of a cost-based user fee system based

on, but not limited to, criteria under subparagraph (F) and

methods to ensure that costs are borne by users on a fair and

equitable basis;

"(v) methods to ensure that funds collected from the

aviation community are able to meet the needs of the agency;

"(vi) methods to ensure that funds collected from the

aviation community and passengers are used to support the

aviation system;

"(vii) means of meeting the airport infrastructure needs

for large, medium, and small airports; and

"(viii) any other matter the task force deems appropriate

to address the funding and needs of the Administration and

the aviation system.

"(C) Additional recommendations. - The aviation funding task

force report may also make recommendations concerning -

"(i) means of improving productivity by expanding and

accelerating the use of automation and other technology;

"(ii) means of contracting out services consistent with

this Act, other applicable law, and safety and national

defense needs;

"(iii) methods to accelerate air traffic control

modernization and improvements in aviation safety and safety

services;

"(iv) the elimination of unneeded programs; and

"(v) a limited innovative program based on funding

mechanisms such as loan guarantees, financial partnerships

with for-profit private sector entities, government-sponsored

enterprises, and revolving loan funds, as a means of funding

specific facilities and equipment projects, and to provide

limited additional funding alternatives for airport capacity

development.

"(D) Impact assessment for recommendations. - For each

recommendation contained in the aviation funding task force's

report, the report shall include a full analysis and assessment

of the impact implementation of the recommendation would have

on -

"(i) safety;

"(ii) administrative costs;

"(iii) the congressional budget process;

"(iv) the economics of the industry (including the

proportionate share of all users);

"(v) the ability of the Administration to utilize the sums

collected; and

"(vi) the funding needs of the Administration.

"(E) Trust fund tax recommendations. - If the task force's

report includes a recommendation that the existing Airport and

Airways Trust Fund tax structure be modified, the report shall

-

"(i) state the specific rates for each group affected by

the proposed modifications;

"(ii) consider the impact such modifications shall have on

specific users and the public (including passengers); and

"(iii) state the basis for the recommendations.

"(F) Fee system recommendations. - If the task force's report

includes a recommendation that a fee system be established,

including an air traffic control performance-based user fee

system, the report shall consider -

"(i) the impact such a recommendation would have on

passengers, air fares (including low-fare, high frequency

service), service, and competition;

"(ii) existing contributions provided by individual air

carriers toward funding the Administration and the air

traffic control system through contributions to the Airport

and Airways Trust Fund;

"(iii) continuing the promotion of fair and competitive

practices;

"(iv) the unique circumstances associated with interisland

air carrier service in Hawaii and rural air service in

Alaska;

"(v) the impact such a recommendation would have on service

to small communities;

"(vi) the impact such a recommendation would have on

services provided by regional air carriers;

"(vii) alternative methodologies for calculating fees so as

to achieve a fair and reasonable distribution of costs of

service among users;

"(viii) the usefulness of phased-in approaches to

implementing such a financing system;

"(ix) means of assuring the provision of general fund

contributions, as appropriate, toward the support of the

Administration; and

"(x) the provision of incentives to encourage greater

efficiency in the provision of air traffic services by the

Administration and greater efficiency in the use of air

traffic services by aircraft operators.

"(7) Duties of aviation safety task force. -

"(A) Report to administrator. - Not later than 1 year after

the date of the enactment of this Act [Oct. 9, 1996], the

aviation safety task force established pursuant to paragraph

(3) shall submit to the Administrator a report setting forth a

comprehensive analysis of aviation safety in the United States

and emerging trends in the safety of particular sectors of the

aviation industry.

"(B) Contents. - The report to be submitted under

subparagraph (A) shall include an assessment of -

"(i) the adequacy of staffing and training resources for

safety personnel of the Administration, including safety

inspectors;

"(ii) the Administration's processes for ensuring the

public safety from fraudulent parts in civil aviation and the

extent to which use of suspected unapproved parts requires

additional oversight or enforcement action; and

"(iii) the ability of the Administration to anticipate

changes in the aviation industry and to develop policies and

actions to ensure the highest level of aviation safety in the

21st century.

"(8) Access to documents and staff. - The Administration may

give the Commission appropriate access to relevant documents and

personnel of the Administration, and the Administrator shall make

available, consistent with the authority to withhold commercial

and other proprietary information under section 552 of title 5,

United States Code (commonly known as the 'Freedom of Information

Act'), cost data associated with the acquisition and operation of

air traffic service systems. Any member of the Commission who

receives commercial or other proprietary data from the

Administrator shall be subject to the provisions of section 1905

of title 18, United States Code, pertaining to unauthorized

disclosure of such information.

"(9) Travel and per diem. - Each member of the Commission 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.

"(10) Detail of personnel from the administration. - The

Administrator shall make available to the Commission such staff,

information, and administrative services and assistance as may

reasonably be required to enable the Commission to carry out its

responsibilities under this subsection.

"(11) Authorization of appropriations. - There is authorized to

be appropriated such sums as may be necessary to carry out the

provisions of this subsection.

"(c) Reports to Congress. -

"(1) Report by the secretary based on final report of aviation

funding task force. -

"(A) Consideration of task force's preliminary report. - Not

later than 30 days after receiving the preliminary report of

the aviation funding task force, the Secretary, in consultation

with the Secretary of the Treasury, shall furnish comments on

the report to the task force.

"(B) Report to congress. - Not later than 30 days after

receiving the final report of the aviation funding task force,

and in no event more than 1 year after the date of the

enactment of this Act, the Secretary, after consulting the

Secretary of the Treasury, shall transmit a report to the

Committee on Commerce, Science, and Transportation and the

Committee on Finance of the Senate, and the Committee on

Transportation and Infrastructure and the Committee on Ways and

Means of the House of Representatives. Such report shall be

based upon the final report of the task force and shall contain

the Secretary's recommendations for funding the needs of the

aviation system through the year 2002.

"(C) Contents. - The Secretary shall include in the report to

Congress under subparagraph (B) -

"(i) a copy of the final report of the task force; and

"(ii) a draft bill containing the changes in law necessary

to implement the Secretary's recommendations.

"(D) Publication. - The Secretary shall cause a copy of the

report to be printed in the Federal Register upon its

transmittal to Congress under subparagraph (B).

"(2) Report by the administrator based on final report of

aviation safety task force. - Not later than 30 days after

receiving the report of the aviation safety task force, the

Administrator shall transmit the report to Congress, together

with the Administrator's recommendations for improving aviation

safety in the United States.

"(d) GAO Audit of Cost Allocation. - The Comptroller General

shall conduct an assessment of the manner in which costs for air

traffic control services are allocated between the Administration

and the Department of Defense. The Comptroller General shall report

the results of the assessment, together with any recommendations

the Comptroller General may have for reallocation of costs and for

opportunities to increase the efficiency of air traffic control

services provided by the Administration and by the Department of

Defense, to the Commission, the Administrator, the Secretary of

Defense, the Committee on Transportation and Infrastructure of the

House of Representatives, and the Committee on Commerce, Science,

and Transportation of the Senate not later than 180 days after the

date of the enactment of this Act.

"(e) GAO Assessment. - Not later than 180 days after the date of

the enactment of this Act, the Comptroller General shall transmit

to the Commission and Congress an independent assessment of airport

development needs."

JOINT AVIATION RESEARCH AND DEVELOPMENT PROGRAM

Pub. L. 103-305, title III, Sec. 303, Aug. 23, 1994, 108 Stat.

1590, provided that:

"(a) Establishment. - The Administrator [of the Federal Aviation

Administration], in consultation with the heads of other

appropriate Federal agencies, shall jointly establish a program to

conduct research on aviation technologies that enhance United

States competitiveness. The program shall include -

"(1) next-generation satellite communications, including global

positioning satellites;

"(2) advanced airport and airplane security;

"(3) environmentally compatible technologies, including

technologies that limit or reduce noise and air pollution;

"(4) advanced aviation safety programs; and

"(5) technologies and procedures to enhance and improve airport

and airway capacity.

"(b) Procedures for Contracts and Grants. - The Administrator and

the heads of the other appropriate Federal agencies shall

administer contracts and grants entered into under the program

established under subsection (a) in accordance with procedures

developed jointly by the Administrator and the heads of the other

appropriate Federal agencies. The procedures should include an

integrated acquisition policy for contract and grant requirements

and for technical data rights that are not an impediment to joint

programs among the Federal Aviation Administration, the other

Federal agencies involved, and industry.

"(c) Program Elements. - The program established under subsection

(a) shall include -

"(1) selected programs that jointly enhance public and private

aviation technology development;

"(2) an opportunity for private contractors to be involved in

such technology research and development; and

"(3) the transfer of Government-developed technologies to the

private sector to promote economic strength and competitiveness.

"(d) Authorization of Appropriations. - Of amounts authorized to

be appropriated for fiscal years 1995 and 1996 under section

48102(a) of title 49, United States Code, as amended by section 302

of this title, there are authorized to be appropriated for fiscal

years 1995 and 1996, respectively, such sums as may be necessary to

carry out this section."

AIRCRAFT CABIN AIR QUALITY RESEARCH PROGRAM

Pub. L. 103-305, title III, Sec. 304, Aug. 23, 1994, 108 Stat.

1591, provided that:

"(a) Establishment. - The Administrator [of the Federal Aviation

Administration], in consultation with the heads of other

appropriate Federal agencies, shall establish a research program to

determine -

"(1) what, if any, aircraft cabin air conditions, including

pressure altitude systems, on flights within the United States

are harmful to the health of airline passengers and crew, as

indicated by physical symptoms such as headaches, nausea,

fatigue, and lightheadedness; and

"(2) the risk of airline passengers and crew contracting

infectious diseases during flight.

"(b) Contract With Center for Disease Control. - In carrying out

the research program established under subsection (a), the

Administrator and the heads of the other appropriate Federal

agencies shall contract with the Center for Disease Control [now

Centers for Disease Control and Prevention] and other appropriate

agencies to carry out any studies necessary to meet the goals of

the program set forth in subsection (c).

"(c) Goals. - The goals of the research program established under

subsection (a) shall be -

"(1) to determine what, if any, cabin air conditions currently

exist on domestic aircraft used for flights within the United

States that could be harmful to the health of airline passengers

and crew, as indicated by physical symptoms such as headaches,

nausea, fatigue, and lightheadedness, and including the risk of

infection by bacteria and viruses;

"(2) to determine to what extent, changes in, cabin air

pressure, temperature, rate of cabin air circulation, the

quantity of fresh air per occupant, and humidity on current

domestic aircraft would reduce or eliminate the risk of illness

or discomfort to airline passengers and crew; and

"(3) to establish a long-term research program to examine

potential health problems to airline passengers and crew that may

arise in an airplane cabin on a flight within the United States

because of cabin air quality as a result of the conditions and

changes described in paragraphs (1) and (2).

"(d) Participation. - In carrying out the research program

established under subsection (a), the Administrator shall encourage

participation in the program by representatives of aircraft

manufacturers, air carriers, aviation employee organizations,

airline passengers, and academia.

"(e) Report. - (1) Within six months after the date of enactment

of this Act [Aug. 23, 1994], the Administrator shall submit to the

Congress a plan for implementation of the research program

established under subsection (a).

"(2) The Administrator shall annually submit to the Congress a

report on the progress made during the year for which the report is

submitted toward meeting the goals set forth in subsection (c).

"(f) Authorization of Appropriations. - Of amounts authorized to

be appropriated for fiscal years 1995 and 1996 under section

48102(a) of title 49, United States Code, as amended by section 302

of this title, there are authorized to be appropriated for fiscal

years 1995 and 1996, respectively, such sums as may be necessary to

carry out this section."

INFORMATION ON DISINSECTION OF AIRCRAFT

Pub. L. 103-305, title V, Sec. 507, Aug. 23, 1994, 108 Stat.

1595, provided that:

"(a) Availability of Information. - In the interest of protecting

the health of air travelers, the Secretary shall publish a list of

the countries (as determined by the Secretary) that require

disinsection of aircraft landing in such countries while passengers

and crew are on board such aircraft.

"(b) Revision. - The Secretary shall revise the list required

under subsection (a) on a periodic basis.

"(c) Publication. - The Secretary shall publish the list required

under subsection (a) not later than 30 days after the date of the

enactment of this Act [Aug. 23, 1994]. The Secretary shall publish

a revision to the list not later than 30 days after completing the

revision under subsection (b)."

GENERAL AVIATION REVITALIZATION ACT OF 1994

Pub. L. 103-298, Aug. 17, 1994, 108 Stat. 1552, as amended by

Pub. L. 105-102, Sec. 3(e), Nov. 20, 1997, 111 Stat. 2215, provided

that:

"SECTION 1. SHORT TITLE.

"This Act may be cited as the 'General Aviation Revitalization

Act of 1994'.

"SEC. 2. TIME LIMITATIONS ON CIVIL ACTIONS AGAINST AIRCRAFT

MANUFACTURERS.

"(a) In General. - Except as provided in subsection (b), no civil

action for damages for death or injury to persons or damage to

property arising out of an accident involving a general aviation

aircraft may be brought against the manufacturer of the aircraft or

the manufacturer of any new component, system, subassembly, or

other part of the aircraft, in its capacity as a manufacturer if

the accident occurred -

"(1) after the applicable limitation period beginning on -

"(A) the date of delivery of the aircraft to its first

purchaser or lessee, if delivered directly from the

manufacturer; or

"(B) the date of first delivery of the aircraft to a person

engaged in the business of selling or leasing such aircraft; or

"(2) with respect to any new component, system, subassembly, or

other part which replaced another component, system, subassembly,

or other part originally in, or which was added to, the aircraft,

and which is alleged to have caused such death, injury, or

damage, after the applicable limitation period beginning on the

date of completion of the replacement or addition.

"(b) Exceptions. - Subsection (a) does not apply -

"(1) if the claimant pleads with specificity the facts

necessary to prove, and proves, that the manufacturer with

respect to a type certificate or airworthiness certificate for,

or obligations with respect to continuing airworthiness of, an

aircraft or a component, system, subassembly, or other part of an

aircraft knowingly misrepresented to the Federal Aviation

Administration, or concealed or withheld from the Federal

Aviation Administration, required information that is material

and relevant to the performance or the maintenance or operation

of such aircraft, or the component, system, subassembly, or other

part, that is causally related to the harm which the claimant

allegedly suffered;

"(2) if the person for whose injury or death the claim is being

made is a passenger for purposes of receiving treatment for a

medical or other emergency;

"(3) if the person for whose injury or death the claim is being

made was not aboard the aircraft at the time of the accident; or

"(4) to an action brought under a written warranty enforceable

under law but for the operation of this Act.

"(c) General Aviation Aircraft Defined. - For the purposes of

this Act, the term 'general aviation aircraft' means any aircraft

for which a type certificate or an airworthiness certificate has

been issued by the Administrator of the Federal Aviation

Administration, which, at the time such certificate was originally

issued, had a maximum seating capacity of fewer than 20 passengers,

and which was not, at the time of the accident, engaged in

scheduled passenger-carrying operations as defined under

regulations in effect under part A of subtitle VII of title 49,

United States Code, at the time of the accident.

"(d) Relationship to Other Laws. - This section supersedes any

State law to the extent that such law permits a civil action

described in subsection (a) to be brought after the applicable

limitation period for such civil action established by subsection

(a).

"SEC. 3. OTHER DEFINITIONS.

"For purposes of this Act -

"(1) the term 'aircraft' has the meaning given such term in

section 40102(a)(6) of title 49, United States Code;

"(2) the term 'airworthiness certificate' means an

airworthiness certificate issued under section 44704(c)(1) of

title 49, United States Code, or under any predecessor Federal

statute;

"(3) the term 'limitation period' means 18 years with respect

to general aviation aircraft and the components, systems,

subassemblies, and other parts of such aircraft; and

"(4) the term 'type certificate' means a type certificate

issued under section 44704(a) of title 49, United States Code, or

under any predecessor Federal statute.

"SEC. 4. EFFECTIVE DATE; APPLICATION OF ACT.

"(a) Effective Date. - Except as provided in subsection (b), this

Act shall take effect on the date of the enactment of this Act

[Aug. 17, 1994].

"(b) Application of Act. - This Act shall not apply with respect

to civil actions commenced before the date of the enactment of this

Act."

NATIONAL COMMISSION TO ENSURE A STRONG COMPETITIVE AIRLINE INDUSTRY

Pub. L. 102-581, title II, Sec. 204, Oct. 31, 1992, 106 Stat.

4891, as amended Pub. L. 103-13, Sec. 1, Apr. 7, 1993, 107 Stat.

43, provided for establishment of National Commission to Ensure a

Strong Competitive Airline Industry to make a complete

investigation and study of financial condition of the airline

industry, adequacy of competition in the airline industry, and

legal impediments to a financially strong and competitive airline

industry, to report to President and Congress not later than 90

days after the date on which initial appointments of members to the

Commission were completed, and to terminate on the 30th day

following transmission of report.

-CROSS-

DEFINITIONS OF TERMS IN PUB. L. 107-71

For definitions of terms used in sections 127 and 145 of Pub. L.

107-71, set out above, see section 133 of Pub. L. 107-71, set out

as a note under section 40102 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 106, 40105, 40118, 41109,

47101 of this title; title 39 section 5402.

-End-

-CITE-

49 USC Sec. 40102 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40102. Definitions

-STATUTE-

(a) General Definitions. - In this part -

(1) "aeronautics" means the science and art of flight.

(2) "air carrier" means a citizen of the United States

undertaking by any means, directly or indirectly, to provide air

transportation.

(3) "air commerce" means foreign air commerce, interstate air

commerce, the transportation of mail by aircraft, the operation

of aircraft within the limits of a Federal airway, or the

operation of aircraft that directly affects, or may endanger

safety in, foreign or interstate air commerce.

(4) "air navigation facility" means a facility used, available

for use, or designed for use, in aid of air navigation, including

-

(A) a landing area;

(B) a light;

(C) apparatus or equipment for distributing weather

information, signaling, radio-directional finding, or radio or

other electromagnetic communication; and

(D) another structure or mechanism for guiding or controlling

flight in the air or the landing and takeoff of aircraft.

(5) "air transportation" means foreign air transportation,

interstate air transportation, or the transportation of mail by

aircraft.

(6) "aircraft" means any contrivance invented, used, or

designed to navigate, or fly in, the air.

(7) "aircraft engine" means an engine used, or intended to be

used, to propel an aircraft, including a part, appurtenance, and

accessory of the engine, except a propeller.

(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

(C) who serves as an aircraft dispatcher or air traffic

control-tower operator.

(9) "airport" means a landing area used regularly by aircraft

for receiving or discharging passengers or cargo.

(10) "all-cargo air transportation" means the transportation by

aircraft in interstate air transportation of only property or

only mail, or both.

(11) "appliance" means an instrument, equipment, apparatus, a

part, an appurtenance, or an accessory used, capable of being

used, or intended to be used, in operating or controlling

aircraft in flight, including a parachute, communication

equipment, and another mechanism installed in or attached to

aircraft during flight, and not a part of an aircraft, aircraft

engine, or propeller.

(12) "cargo" means property, mail, or both.

(13) "charter air carrier" means an air carrier holding a

certificate of public convenience and necessity that authorizes

it to provide charter air transportation.

(14) "charter air transportation" means charter trips in air

transportation authorized under this part.

(15) "citizen of the United States" means -

(A) an individual who is a citizen of the United States;

(B) a partnership each of whose partners is an individual who

is a citizen of the United States; or

(C) a corporation or association organized under the laws of

the United States or a State, the District of Columbia, or a

territory or possession of the United States, of which the

president and at least two-thirds of the board of directors and

other managing officers are citizens of the United States, and

in which at least 75 percent of the voting interest is owned or

controlled by persons that are citizens of the United States.

(16) "civil aircraft" means an aircraft except a public

aircraft.

(17) "civil aircraft of the United States" means an aircraft

registered under chapter 441 of this title.

(18) "conditional sales contract" means a contract -

(A) for the sale of an aircraft, aircraft engine, propeller,

appliance, or spare part, under which the buyer takes

possession of the property but title to the property vests in

the buyer at a later time on -

(i) paying any part of the purchase price;

(ii) performing another condition; or

(iii) the happening of a contingency; or

(B) to bail or lease an aircraft, aircraft engine, propeller,

appliance, or spare part, under which the bailee or lessee -

(i) agrees to pay an amount substantially equal to the

value of the property; and

(ii) is to become, or has the option of becoming, the owner

of the property on complying with the contract.

(19) "conveyance" means an instrument, including a conditional

sales contract, affecting title to, or an interest in, property.

(20) "Federal airway" means a part of the navigable airspace

that the Administrator designates as a Federal airway.

(21) "foreign air carrier" means a person, not a citizen of the

United States, undertaking by any means, directly or indirectly,

to provide foreign air transportation.

(22) "foreign air commerce" means the transportation of

passengers or property by aircraft for compensation, the

transportation of mail by aircraft, or the operation of aircraft

in furthering a business or vocation, between a place in the

United States and a place outside the United States when any part

of the transportation or operation is by aircraft.

(23) "foreign air transportation" means the transportation of

passengers or property by aircraft as a common carrier for

compensation, or the transportation of mail by aircraft, between

a place in the United States and a place outside the United

States when any part of the transportation is by aircraft.

(24) "interstate air commerce" means the transportation of

passengers or property by aircraft for compensation, the

transportation of mail by aircraft, or the operation of aircraft

in furthering a business or vocation -

(A) between a place in -

(i) a State, territory, or possession of the United States

and a place in the District of Columbia or another State,

territory, or possession of the United States;

(ii) a State and another place in the same State through

the airspace over a place outside the State;

(iii) the District of Columbia and another place in the

District of Columbia; or

(iv) a territory or possession of the United States and

another place in the same territory or possession; and

(B) when any part of the transportation or operation is by

aircraft.

(25) "interstate air transportation" means the transportation

of passengers or property by aircraft as a common carrier for

compensation, or the transportation of mail by aircraft -

(A) between a place in -

(i) a State, territory, or possession of the United States

and a place in the District of Columbia or another State,

territory, or possession of the United States;

(ii) Hawaii and another place in Hawaii through the

airspace over a place outside Hawaii;

(iii) the District of Columbia and another place in the

District of Columbia; or

(iv) a territory or possession of the United States and

another place in the same territory or possession; and

(B) when any part of the transportation is by aircraft.

(26) "intrastate air carrier" means a citizen of the United

States undertaking by any means to provide only intrastate air

transportation.

(27) "intrastate air transportation" means the transportation

by a common carrier of passengers or property for compensation,

entirely in the same State, by turbojet-powered aircraft capable

of carrying at least 30 passengers.

(28) "landing area" means a place on land or water, including

an airport or intermediate landing field, used, or intended to be

used, for the takeoff and landing of aircraft, even when

facilities are not provided for sheltering, servicing, or

repairing aircraft, or for receiving or discharging passengers or

cargo.

(29) "mail" means United States mail and foreign transit mail.

(30) "navigable airspace" means airspace above the minimum

altitudes of flight prescribed by regulations under this subpart

and subpart III of this part, including airspace needed to ensure

safety in the takeoff and landing of aircraft.

(31) "navigate aircraft" and "navigation of aircraft" include

piloting aircraft.

(32) "operate aircraft" and "operation of aircraft" mean using

aircraft for the purposes of air navigation, including -

(A) the navigation of aircraft; and

(B) causing or authorizing the operation of aircraft with or

without the right of legal control of the aircraft.

(33) "person", in addition to its meaning under section 1 of

title 1, includes a governmental authority and a trustee,

receiver, assignee, and other similar representative.

(34) "predatory" means a practice that violates the antitrust

laws as defined in the first section of the Clayton Act (15

U.S.C. 12).

(35) "price" means a rate, fare, or charge.

(36) "propeller" includes a part, appurtenance, and accessory

of a propeller.

(37) "public aircraft" means any of the following:

(A) Except with respect to an aircraft described in

subparagraph (E), an aircraft used only for the United States

Government, except as provided in section 40125(b).

(B) An aircraft owned by the Government and operated by any

person for purposes related to crew training, equipment

development, or demonstration, except as provided in section

40125(b).

(C) An aircraft owned and operated by the government of a

State, the District of Columbia, or a territory or possession

of the United States or a political subdivision of one of these

governments, except as provided in section 40125(b).

(D) An aircraft exclusively leased for at least 90 continuous

days by the government of a State, the District of Columbia, or

a territory or possession of the United States or a political

subdivision of one of these governments, except as provided in

section 40125(b).

(E) An aircraft owned or operated by the armed forces or

chartered to provide transportation to the armed forces under

the conditions specified by section 40125(c).

(38) "spare part" means an accessory, appurtenance, or part of

an aircraft (except an aircraft engine or propeller), aircraft

engine (except a propeller), propeller, or appliance, that is to

be installed at a later time in an aircraft, aircraft engine,

propeller, or appliance.

(39) "State authority" means an authority of a State designated

under State law -

(A) to receive notice required to be given a State authority

under subpart II of this part; or

(B) as the representative of the State before the Secretary

of Transportation in any matter about which the Secretary is

required to consult with or consider the views of a State

authority under subpart II of this part.

(40) "ticket agent" means a person (except an air carrier, a

foreign air carrier, or an employee of an air carrier or foreign

air carrier) that as a principal or agent sells, offers for sale,

negotiates for, or holds itself out as selling, providing, or

arranging for, air transportation.

(41) "United States" means the States of the United States, the

District of Columbia, and the territories and possessions of the

United States, including the territorial sea and the overlying

airspace.

(42) "air traffic control system" means the combination of

elements used to safely and efficiently monitor, direct, control,

and guide aircraft in the United States and United

States-assigned airspace, including -

(A) allocated electromagnetic spectrum and physical, real,

personal, and intellectual property assets making up

facilities, equipment, and systems employed to detect, track,

and guide aircraft movement;

(B) laws, regulations, orders, directives, agreements, and

licenses;

(C) published procedures that explain required actions,

activities, and techniques used to ensure adequate aircraft

separation; and

(D) trained personnel with specific technical capabilities to

satisfy the operational, engineering, management, and planning

requirements for air traffic control.

(b) Limited Definition. - In subpart II of this part, "control"

means control by any means.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1097; Pub. L.

103-305, title VI, Sec. 601(b)(2)(B), Aug. 23, 1994, 108 Stat.

1606; Pub. L. 103-411, Sec. 3(a), Oct. 25, 1994, 108 Stat. 4236;

Pub. L. 103-429, Sec. 6(46), Oct. 31, 1994, 108 Stat. 4384; Pub. L.

105-137, Sec. 6, Dec. 2, 1997, 111 Stat. 2641; Pub. L. 106-181,

title III, Sec. 301, title VII, Sec. 702(a), Apr. 5, 2000, 114

Stat. 115, 155.)

-MISC1-

HISTORICAL AND REVISION NOTES

PUB. L. 103-272

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40102(a)(1) 49 App.:1301(2). Aug. 23, 1958, Pub. L.

85-726, Secs. 101(2), (3)

(less proviso), (5)-(10),

413, 72 Stat. 737, 770.

40102(a)(2) 49 App.:1301(3)

(less proviso).

40102(a)(3) 49 App.:1301(4). Aug. 23, 1958, Pub. L.

85-726, Sec. 101(4), 72

Stat. 737; Sept. 5, 1961,

Pub. L. 87-197, Sec. 3, 75

Stat. 467.

40102(a)(4) 49 App.:1301(8).

40102(a)(5) 49 App.:1301(10).

40102(a)( 49 App.:1301(5),

6), (7) (6).

40102(a)(8) 49 App.:1301(7).

49 App.:1655(c)(1). Oct. 15, 1966, Pub. L.

89-670, Sec. 6(c)(1), 80

Stat. 938; Jan. 12, 1983,

Pub. L. 97-449, Sec. 7(b),

96 Stat. 2444.

40102(a)(9) 49 App.:1301(9).

40102(a)( 49 App.:1301(11). Aug. 23, 1958, Pub. L.

10) 85-726, 72 Stat. 731, Sec.

101(11); added Nov. 9, 1977,

Pub. L. 95-163, Sec.

17(b)(2), 91 Stat. 1286;

restated Oct. 4, 1984, Pub.

L. 98-443, Sec. 9(a)(1), 98

Stat. 1706.

40102(a)( 49 App.:1301(12). Aug. 23, 1958, Pub. L.

11) 85-726, Sec. 101(12),

(16)-(34), (37), (40), (41),

72 Stat. 737, 739; July 10,

1962, Pub. L. 87-528, Sec.

1, 76 Stat. 143; Sept. 26,

1968, Pub. L. 90-514, Sec.

1, 82 Stat. 867; Oct. 14,

1970, Pub. L. 91-449, Sec.

1(2), 84 Stat. 921; Aug. 5,

1974, Pub. L. 93-366, Sec.

206, 88 Stat. 419; Nov. 9,

1977, Pub. L. 95-163, Sec.

17(b)(1), 91 Stat. 1286;

Oct. 24, 1978, Pub. L.

95-504, Sec. 2(a)(4), (b),

92 Stat. 1705.

40102(a)( (no source).

12)

40102(a)( 49 App.:1301(14) Aug. 23, 1958, Pub. L.

13) (less certificate). 85-726, 72 Stat. 731, Sec.

101(14) (less certificate),

(15); added Oct. 24, 1978,

Pub. L. 95-504, Sec.

2(a)(1), 92 Stat. 1705.

40102(a)( 49 App.:1301(15).

14)

49 Aug. 23, 1958, Pub. L.

App.:1551(b)(1)(E). 85-726, 72 Stat. 731, Sec.

1601(b)(1)(E); added Oct. 4,

1984, Pub. L. 98-443, Sec.

3(e), 98 Stat. 1704.

40102(a) 49

(15)-(18) App.:1301(16)-(19).

40102(a)( 49 App.:1301(20).

19)

40102(a)( 49 App.:1301(21).

20)

49 App.:1655(c)(1).

40102(a)( 49 App.:1301(22).

21)

40102(a)( 49 App.:1301(23)

22) (related to foreign

air commerce).

40102(a)( 49 App.:1301(24)

23) (related to foreign

air transportation).

40102(a)( 49 App.:1301(23)

24) (related to

interstate and

overseas air

commerce).

40102(a)( 49 App.:1301(24)

25) (related to

interstate and

overseas air

transportation).

49 App.:1305(b)(2), Aug. 23, 1958, Pub. L.

(d) (related to 85-726, 72 Stat. 731, Sec.

(b)(2)). 105(b)(2), (d) (related to

(b)(2)); added Oct. 24,

1978, Pub. L. 95-504, Sec.

4(a), 92 Stat. 1708.

40102(a) 49

(26)-(32) App.:1301(25)-(31).

40102(a)( 49 App.:1301(32).

33)

40102(a)( 49 App.:1301(35). Aug. 23, 1958, Pub. L.

34) 85-726, 72 Stat. 731, Sec.

101(35), (39); added Oct.

24, 1978, Pub. L. 95-504,

Sec. 2(a)(2), (3), (b), 92

Stat. 1705.

40102(a)( (no source).

35)

40102(a)( 49 App.:1301(33),

36) (34).

40102(a)( 49 App.:1301(36). Aug. 23, 1958, Pub. L.

37) 85-726, Sec. 101(36), 72

Stat. 739; Aug. 5, 1974,

Pub. L. 93-366, Sec. 206, 88

Stat. 419; Nov. 9, 1977,

Pub. L. 95-163, Sec.

17(b)(1), 91 Stat. 1286;

Oct. 24, 1978, Pub. L.

95-504, Sec. 2, 92 Stat.

1705; Dec. 30, 1987, Pub. L.

100-223, Sec. 207, 101 Stat.

1523.

40102(a)( 49 App.:1301(37).

38)

40102(a)( 49 App.:1301(39).

39)

40102(a)( 49 App.:1301(40).

40)

40102(a)( 49 App.:1301(41).

41)

40102(b) 49 App.:1383.

--------------------------------------------------------------------

In subsection (a)(2), the words "by any means" are substituted

for "whether . . . or by a lease or any other arrangement" to

eliminate unnecessary words. The word "provide" is substituted for

"engage in" for consistency in the revised title.

In subsection (a)(3), the words "or navigation" are omitted as

being included in the definition of "operation of aircraft" in this

subsection.

In subsection (a)(4)(D), the words "having a similar purpose" are

omitted as surplus.

In subsection (a)(6), the words "now known or hereafter" are

omitted as surplus.

In subsection (a)(7), the words "of the engine" are substituted

for "thereof" for clarity.

In subsection (a)(8)(A), the words "as the person" are omitted as

surplus.

In subsection (a)(10), the word "transportation" is substituted

for "carriage" for consistency in the revised title.

In subsection (a)(11), the words "of whatever description" are

omitted as surplus. The word "navigation" is omitted as being

included in the definition of "operate aircraft" in this

subsection. The words "or mechanisms" are omitted because of 1:1.

Subsection (a)(12) is added for clarity to distinguish between

cargo (which includes mail) and property (which does not include

mail).

In subsection (a)(13), the word "provide" is substituted for

"engage in" for consistency in the revised title.

In subsection (a)(14), the words "including inclusive tour

charter trips" are omitted as obsolete. The words "authorized under

this part" are substituted for "rendered pursuant to authority

conferred under this chapter under regulations prescribed by the

Board" to eliminate unnecessary words.

In subsection (a)(15)(A), the words "or of one of its

possessions" are omitted as being included in the definition of

"United States" in this subsection.

In subsection (a)(15)(C), the words "created or" are omitted as

being included in "organized".

In subsection (a)(17), the words "chapter 441 of this title" are

substituted for "this chapter" for clarity because aircraft are

registered only under chapter 441.

In subsection (a)(18), the text of 49 App.:1301(19) (last

sentence) is omitted as surplus.

In subsection (a)(18)(A), before subclause (i), the words "title

to" are added for clarity and consistency in this section.

In subsection (a)(18)(B)(i), the words "as compensation" are

omitted as surplus.

In subsection (a)(18)(B)(ii), the words "it is agreed that",

"bound", "full", and "the terms of" are omitted as surplus.

In subsection (a)(19), the words "bill of sale . . . mortgage,

assignment of mortgage, or other" are omitted as being included in

"instrument".

In subsection (a)(20), the words "of the United States" are

omitted for consistency in the revised title and because of the

definition of "navigable airspace" in this subsection.

In subsection (a)(21), the words "by any means" are substituted

for "whether . . . or by lease or any other arrangement" to

eliminate unnecessary words. The word "provide" is substituted for

"engage in" for consistency in the revised title.

In subsection (a)(22)-(25) and (27), the words "transportation"

and "passengers" are substituted for "carriage" and "persons",

respectively, for consistency in the revised title. The word

"compensation" is substituted for, and is coextensive with,

"compensation or hire".

In subsection (a)(22) and (24), the words "or navigation" are

omitted as being included in the definition of "operation of

aircraft" in this subsection. The words "the conduct or" and "in

commerce" are omitted as surplus. The words "when any part of the

transportation or operation is by aircraft" are substituted for 49

App.:1301(23) (words after last semicolon) to eliminate unnecessary

words.

In subsection (a)(23) and (25), the words "in commerce" are

omitted as surplus. The words "when any part of the transportation

is by aircraft" are substituted for 49 App.:1301(24) (words after

last semicolon) to eliminate unnecessary words.

In subsection (a)(24), (25), and (27), the words "of the United

States" are omitted as surplus.

In subsection (a)(24)(A)(i) and (25)(A)(i), the words "or the

District of Columbia" the first time they appear are omitted as

surplus.

In subsection (a)(25)(A)(ii), the text of 49 App.:1301(24)(a)

(words between semicolons) is omitted because 49 App.:1305(b)(2)

removes the subject matter of the text from the definition. See H.

Rept. No. 95-1211, 95th Cong., 2d Sess., p.16 (1978).

In subsection (a)(26), the words "by any means" are substituted

for "whether . . . or by a lease or any other arrangement" to

eliminate unnecessary words. The word "provide" is substituted for

"engage" for consistency in the revised title.

In subsection (a)(28), the word "place" is substituted for

"locality" for consistency in the revised title.

In subsection (a)(32)(B), the words "(in the capacity of owner,

lessee, or otherwise)" are omitted as surplus.

In subsection (a)(33), the words "in addition to its meaning

under section 1 of title 1" are substituted for "any individual,

firm, copartnership, corporation, company, association, joint stock

association" for clarity because 1:1 is applicable to all laws

unless otherwise provided. The words "governmental authority" are

substituted for "body politic" for consistency in the revised title

and with other titles of the United States Code.

Subsection (a)(35) is added to eliminate repetition of the words

"rates, fares, or charges" throughout this part.

In subsection (a)(36), the text of 49 App.:1301(34) (1st

sentence) is omitted as obsolete. Reference to the Canal Zone is

omitted because of the Panama Canal Treaty of 1977. The text of 49

App.:1301(34) (last sentence) is omitted because of 48:734.

Subsection (a)(37)(A)(i) is substituted for "used exclusively in

the service of any government" and "For purposes of this paragraph,

'used exclusively in the service of' means, for other than the

Federal Government" for clarity and to eliminate unnecessary words.

Subsection (a)(37)(A)(ii) is substituted for "used exclusively in

the service of any government or of any political subdivision

thereof, including the government of any State, Territory, or

possession of the United States, or the District of Columbia" and

"For purposes of this paragraph, 'used exclusively in the service

of' means, for other than the Federal Government, an aircraft which

is owned and operated by a governmental entity for other than

commercial purposes or which is exclusively leased by such

governmental entity for not less than 90 continuous days" for

clarity and to eliminate unnecessary words.

In subsection (a)(37)(B), the words "transporting passengers or

property" are substituted for "engaged in carrying persons or

property" for consistency in the revised title.

In subsection (a)(38), the words "that is to be installed at a

later time" are substituted for "maintained for installation or use

. . . but which at the time are not installed therein or attached

thereto" to eliminate unnecessary words.

In subsection (a)(39), the word "authority" is substituted for

"agency" and "entity" for consistency in the revised title. Before

subclause (A), the words "department, agency, officer, or other"

are omitted as being included in "authority".

In subsection (a)(40), the words "bona fide" and "by

solicitation, advertisement, or otherwise" are omitted as surplus.

The words "furnishes, contracts" are omitted as being included in

"providing, or arranging".

In subsection (a)(41), the words "States of the United States"

are substituted for "several States", and the word "sea" is

substituted for "waters", for consistency in the revised title and

with other titles of the Code.

Subsection (b) is substituted for 49 App.:1383 to eliminate

unnecessary words.

PUB. L. 103-429

This makes a conforming amendment for consistency with the style

of title 49.

AMENDMENTS

2000 - Subsec. (a)(37). Pub. L. 106-181, Sec. 702(a), amended

par. (37) generally, revising and restating provisions defining

"public aircraft" to include references to qualifications found in

section 40125(b) and (c).

Subsec. (a)(42). Pub. L. 106-181, Sec. 301, added par. (42).

1997 - Subsec. (a)(37)(A). Pub. L. 105-137 struck out "or" at end

of cl. (i), added cl. (ii), and redesignated former cl. (ii) as

(iii).

1994 - Subsec. (a)(30). Pub. L. 103-429 substituted "this subpart

and subpart III" for "subparts I and III".

Subsec. (a)(35). Pub. L. 103-305 struck out "for air

transportation" after "charge".

Subsec. (a)(37)(B). Pub. L. 103-411 added subpar. (B) and struck

out former subpar. (B) which read as follows: "does not include a

government-owned aircraft transporting passengers or property for

commercial purposes."

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-181 applicable only to fiscal years

beginning after Sept. 30, 1999, see section 3 of Pub. L. 106-181,

set out as a note under section 106 of this title.

EFFECTIVE DATE OF 1994 AMENDMENTS

Amendment by Pub. L. 103-429 effective July 5, 1994, see section

9 of Pub. L. 103-429, set out as a note under section 321 of this

title.

Amendment by Pub. L. 103-411 effective on the 180th day following

Oct. 25, 1994, see section 3(d) of Pub. L. 103-411, set out as a

note under section 1131 of this title.

Amendment by Pub. L. 103-305 effective Jan. 1, 1995, see section

601(d) of Pub. L. 103-305, set out as a note under section 10521 of

this title.

-EXEC-

TERRITORIAL SEA OF UNITED STATES

For extension of territorial sea of United States, see Proc. No.

5928, set out as a note under section 1331 of Title 43, Public

Lands.

-CROSS-

DEFINITIONS OF TERMS IN PUB. L. 107-71

Pub. L. 107-71, title I, Sec. 133, Nov. 19, 2001, 115 Stat. 636,

provided that: "Except as otherwise explicitly provided, any term

used in this title [see Tables for classification] that is defined

in section 40102 of title 49, United States Code, has the meaning

given that term in that section."

DEFINITIONS APPLICABLE TO PUB. L. 106-181

Pub. L. 106-181, Sec. 4, Apr. 5, 2000, 114 Stat. 64, provided

that: "Except as otherwise provided in this Act [see Tables for

classification], the following definitions apply:

"(1) Administrator. - The term 'Administrator' means the

Administrator of the Federal Aviation Administration.

"(2) Secretary. - The term 'Secretary' means the Secretary of

Transportation."

DEFINITIONS APPLICABLE TO PUB. L. 103-305

Section 2 of Pub. L. 103-305 provided that: "In this Act [see

Short Title of 1994 Amendment note set out under section 40101 of

this title], the following definitions apply:

"(1) Administrator. - The term 'Administrator' means the

Administrator of the Federal Aviation Administration.

"(2) Secretary. - The term 'Secretary' means the Secretary of

Transportation."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 106, 321, 1101, 1131,

5114, 40125, 47129, 47302, 47522 of this title; title 8 section

1184; title 10 sections 2640, 9511, 9783; title 11 sections 365,

1110; title 15 section 2052; title 18 sections 31, 229F, 553; title

19 sections 1627a, 1644a, 2492; title 22 sections 5605, 6701; title

29 section 1301; title 31 section 3726; title 39 sections 5005,

5007, 5402; title 42 sections 4902, 7574.

-End-

-CITE-

49 USC Sec. 40103 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40103. Sovereignty and use of airspace

-STATUTE-

(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 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 may modify or revoke

an assignment when required in the public interest.

(2) The Administrator 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, in

consultation with the Secretary of Defense, shall -

(A) establish areas in the airspace the Administrator 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 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.

(c) Foreign Aircraft. - A foreign aircraft, not part of the armed

forces of a foreign country, may be navigated in the United States

as provided in section 41703 of this title.

(d) Aircraft of Armed Forces of Foreign Countries. - Aircraft of

the armed forces of a foreign country may be navigated in the

United States only when authorized by the Secretary of State.

(e) No Exclusive Rights at Certain Facilities. - A person does

not have an exclusive right to use an air navigation facility on

which Government money has been expended. However, providing

services at an airport by only one fixed-based operator is not an

exclusive right if -

(1) it is unreasonably costly, burdensome, or impractical for

more than one fixed-based operator to provide the services; and

(2) allowing more than one fixed-based operator to provide the

services requires a reduction in space leased under an agreement

existing on September 3, 1982, between the operator and the

airport.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1101.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40103(a)(1) 49 App.:1508(a) Aug. 23, 1958, Pub. L.

(1st sentence). 85-726, Secs. 307(a), (c),

(d), 308(a) (3d sentence),

1108(a), 1201, 1202, 72

Stat. 749, 750, 751, 798,

800.

40103(a)(2) 49 App.:1304. Aug. 23, 1958, Pub. L.

85-726, Sec. 104, 72 Stat.

740; Oct. 4, 1984, Pub. L.

98-443, Sec. 14, 98 Stat.

1711.

49 Aug. 28, 1958, Pub. L.

App.:1551(b)(1)(E). 85-726, 72 Stat. 731, Sec.

1601(b)(1)(E); added Oct. 4,

1984, Pub. L. 98-443, Sec.

3(e), 98 Stat. 1704.

40103(b)(1) 49 App.:1348(a).

49 App.:1655(c)(1). Oct. 15, 1966, Pub. L.

89-670, Sec. 6(c)(1), 80

Stat. 938; Jan. 12, 1983,

Pub. L. 97-449, Sec. 7(b),

96 Stat. 2444.

40103(b)(2) 49 App.:1348(c).

49 App.:1655(c)(1).

40103(b)(3) 49 App.:1521.

49 App.:1522.

49 App.:1655(c)(1).

40103(b)(4) 49 App.:1348(d).

40103(c) (no source).

40103(d) 49 App.:1508(a)

(last sentence).

40103(e) 49 App.:1349(a) (3d

sentence).

49 App.:1349(a) Aug. 23, 1958, Pub. L.

(last sentence). 85-726, 72 Stat. 731, Sec.

308(a) (last sentence);

added Sept. 3, 1982, Pub. L.

97-248, Sec. 524(a)(1), 96

Stat. 695.

--------------------------------------------------------------------

In subsection (a)(1), the word "has" is substituted for "is

declared to possess and exercise complete and" to eliminate surplus

words. The word "national" is omitted as surplus. The text of 49

App.:1508(a) (1st sentence words after 1st comma) is omitted as

surplus.

In subsection (a)(2), the words "of the United States" are

omitted for consistency in the revised title and because of the

definition of "navigable airspace" in section 40102(a) of the

revised title. The words "or amending" are omitted as surplus.

In subsection (b), the word "Administrator" in section 307(a),

(c), and (d) of the Federal Aviation Act of 1958 (Public Law

85-726, 72 Stat. 749, 750) is retained on authority of 49:106(g).

In subsection (b)(1) and (3)(B), the word "rule" is omitted as

being synonymous with "regulation".

In subsection (b)(1), the words "under such terms, conditions,

and limitations as he may deem" are omitted as surplus. The words

"In the exercise of his authority under section 1348(a) of this

Appendix" in 49 App.:1522 are omitted as unnecessary because of the

restatement.

In subsection (b)(2), before clause (A), the word "shall" is

substituted for "is further authorized and directed" for

consistency in the revised title and to eliminate unnecessary

words.

In subsection (b)(3), before clause (A), the words "In the

exercise of his authority under section 1348(a) of this Appendix"

in 49 App.:1522 are omitted as surplus. The word "navigable" is

added for clarity and consistency. In clause (A), the words "such

zones or" are omitted as surplus.

In subsection (b)(4), the words "the military exception" are

substituted for "any exception relating to military or naval

functions" to eliminate unnecessary words and because "naval" is

included in "military". The words "applies to a regulation

prescribed under" are substituted for "In the exercise of the

rulemaking authority . . . the Secretary of Transportation shall be

subject to" to eliminate unnecessary words and because "rules" and

"regulations" are synonymous.

Subsection (c) is added for clarity.

In subsection (d), the words "including the Canal Zone" are

omitted because of the Panama Canal Treaty of 1977.

In subsection (e), before clause (1), the words "any landing

area" are omitted as being included in the definition of "air

navigation facility" in section 40102(a) of the revised title. The

word "only" is added for clarity. In clause (2), the words "on

September 3, 1982" are added for clarity.

REGULATIONS

Pub. L. 85-726, title VI, Sec. 613(a), (b), as added by Pub.

L.101-508, title IX, Sec. 9124, Nov. 5, 1990, 104 Stat. 1388-370,

provided that:

"(a) National Disaster Areas. - Before the 180th day following

the date of the enactment of this section [Nov. 5, 1990], the

Administrator, for safety and humanitarian reasons, shall issue

such regulations as may be necessary to prohibit or otherwise

restrict aircraft overflights of any inhabited area which has been

declared a national disaster area in the State of Hawaii.

"(b) Exceptions. - Regulations issued pursuant to subsection (a)

shall not be applicable in the case of aircraft overflights

involving an emergency or a ligitimate [sic] scientific purpose."

NATIONAL AIRSPACE REDESIGN

Pub. L. 106-181, title VII, Sec. 736, Apr. 5, 2000, 114 Stat.

171, provided that:

"(a) Findings. - Congress makes the following findings:

"(1) The national airspace, comprising more than 29 million

square miles, handles more than 55,000 flights per day.

"(2) Almost 2,000,000 passengers per day traverse the United

States through 20 major en route centers, including more than 700

different sectors.

"(3) Redesign and review of the national airspace may produce

benefits for the travelling public by increasing the efficiency

and capacity of the air traffic control system and reducing

delays.

"(4) Redesign of the national airspace should be a high

priority for the Federal Aviation Administration and the air

transportation industry.

"(b) Redesign. - The Administrator [of the Federal Aviation

Administration], with advice from the aviation industry and other

interested parties, shall conduct a comprehensive redesign of the

national airspace system.

"(c) Report. - Not later than December 31, 2000, the

Administrator shall transmit to the Committee on Commerce, Science,

and Transportation of the Senate and the Committee on

Transportation and Infrastructure of the House of Representatives a

report on the Administrator's comprehensive national airspace

redesign. The report shall include projected milestones for

completion of the redesign and shall also include a date for

completion.

"(d) Authorization. - There is authorized to be appropriated to

the Administrator to carry out this section $12,000,000 for each of

fiscal years 2000, 2001, and 2002."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 106, 40106, 40109, 44101,

44502, 46301, 46307, 46316 of this title.

-End-

-CITE-

49 USC Sec. 40104 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40104. Promotion of civil aeronautics and safety of air

commerce

-STATUTE-

(a) Developing Civil Aeronautics and Safety of Air Commerce. -

The Administrator of the Federal Aviation Administration shall

encourage the development of civil aeronautics and safety of air

commerce in and outside the United States. In carrying out this

subsection, the Administrator shall take action that the

Administrator 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 may develop and construct a civil

supersonic aircraft.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1102; Pub. L.

103-429, Sec. 6(47), Oct. 31, 1994, 108 Stat. 4384; Pub. L.

104-264, title IV, Sec. 401(b)(1), Oct. 9, 1996, 110 Stat. 3255.)

-MISC1-

HISTORICAL AND REVISION NOTES

PUB. L. 103-272

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40104 49 App.:1346. Aug. 23, 1958, Pub. L.

85-726, Sec. 305, 72 Stat.

749.

49 App.:1346a. July 12, 1976, Pub. L.

94-353, Sec. 21, 90 Stat.

884.

49 App.:1655(c)(1). Oct. 15, 1966, Pub. L.

89-670, Sec. 6(c)(1), 80

Stat. 938; Jan. 12, 1983,

Pub. L. 97-449, Sec. 7(b),

96 Stat. 2444.

--------------------------------------------------------------------

The words "and foster" in 49 App.:1346 are omitted as surplus.

The words "In carrying out this section" are substituted for "In

furtherance of his mandate to promote civil aviation" in 49

App.:1346a because of the restatement. The word "Administrator" is

substituted for "Secretary of Transportation acting through the

Administrator of the Federal Aviation Administration" for

consistency with the source provisions restated in this section.

The words "be designed so as to", "various aspects of", and "civil

and" are omitted as surplus.

PUB. L. 103-429, SEC. 6(47)(A), (B)

This makes conforming amendments to 49:40104, as enacted by

section 1 of the Act of July 5, 1994 (Public Law 103-272, 108 Stat.

1102), because of the restatement of 49 App.:1655(c)(1) (words

after last comma) as 49:40104(b) by section 6(47)(C) of the bill.

PUB. L. 103-429, SEC. 6(47)(C)

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40104(b) 49 App.:1655(c)(1) Oct. 15, 1966, Pub. L.

(words after last 89-670, Sec. 6(c)(1) (words

comma). after last comma), 80 Stat.

938; Jan. 12, 1983, Pub. L.

97-449, Sec. 7(b), 96 Stat.

2444.

--------------------------------------------------------------------

AMENDMENTS

1996 - Pub. L. 104-264, Sec. 401(b)(1)(A), inserted "safety of"

before "air commerce" in section catchline.

Subsec. (a). Pub. L. 104-264, Sec. 401(b)(1)(B), (C), inserted

"Safety of" before "Air Commerce" in heading and "safety of" before

"air commerce" in text.

1994 - Pub. L. 103-429 designated existing provisions as subsec.

(a), inserted heading, substituted "carrying out this subsection"

for "carrying out this section", and added subsec. (b).

EFFECTIVE DATE OF 1996 AMENDMENT

Except as otherwise specifically provided, amendment by Pub. L.

104-264 applicable only to fiscal years beginning after Sept. 30,

1996, and not to be construed as affecting funds made available for

a fiscal year ending before Oct. 1, 1996, see section 3 of Pub. L.

104-264, set out as a note under section 106 of this title.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-429 effective July 5, 1994, see section

9 of Pub. L. 103-429, set out as a note under section 321 of this

title.

-End-

-CITE-

49 USC Sec. 40105 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40105. International negotiations, agreements, and obligations

-STATUTE-

(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. - (1) In carrying out

this part, the Secretary of Transportation and the Administrator -

(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.

(2) This subsection does not apply to an agreement between an air

carrier or an officer or representative of an air carrier and the

government of a foreign country, if the Secretary of Transportation

disapproves the agreement because it is not in the public interest.

Section 40106(b)(2) of this title applies to this subsection.

(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;

(2) airport operators;

(3) scheduled air carriers;

(4) charter air carriers;

(5) airline labor;

(6) consumer interest groups;

(7) travel agents and tour organizers; and

(8) other groups, institutions, and governmental authorities

affected by international aviation policy.

(d) Congressional Observers at International Aviation

Negotiations. - The President shall grant to at least one

representative of each House of Congress the privilege of attending

international aviation negotiations as an observer if the privilege

is requested in advance in writing.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1102.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40105(a) 49 App.:1462. Aug. 23, 1958, Pub. L.

85-726, Sec. 802, 72 Stat.

783.

49 Aug. 23, 1958, Pub. L.

App.:1551(b)(1)(B). 85-726, 72 Stat. 731, Sec.

1601(b)(1)(B); added Oct.

24, 1978, Pub. L. 95-504,

Sec. 40(a), 92 Stat. 1745.

49 App.:1655(c)(1). Oct. 15, 1966, Pub. L.

89-670, Sec. 6(c)(1), 80

Stat. 938; Jan. 12, 1983,

Pub. L. 97-449, Sec. 7(b),

96 Stat 2444.

40105(b) 49 App.:1502(a). Aug. 23, 1958, Pub. L.

85-726, Sec. 1102(a), 72

Stat. 797; Feb. 15, 1980,

Pub. L. 96-192, Sec. 17, 94

Stat. 42.

49 Aug. 23, 1958, Pub. L.

App.:1551(b)(1)(E). 85-726, 72 Stat. 731, Sec.

1601(b) (1)(E); added Oct.

4, 1984, Pub. L. 98-443,

Sec. 3(e), 98 Stat. 1704.

49 App.:1655(c)(1).

40105(c) 49 App.:1502(c). Aug. 23, 1958, Pub. L.

85-726, 72 Stat. 731, Sec.

1102(c), (d); added Feb. 15,

1980, Pub. L. 96-192, Sec.

17, 94 Stat. 43.

49

App.:1551(b)(1)(E).

40105(d) 49 App.:1502(d).

--------------------------------------------------------------------

In subsection (a), the words "government of a foreign country"

are substituted for "foreign governments" in 49 App.:1462 and

"foreign country" in 49 App.:1502(a) for consistency in the revised

title and with other titles of the United States Code. The words

"Secretary of Transportation" are substituted for "Department of

Transportation" in 49 App.:1551(b)(1)(B) because of 49:102(b). The

words "Secretary of State" are substituted for "Department of

State" because of 22:2651.

In subsection (b)(1), before clause (A), the words "carrying out"

are substituted for "exercising and performing . . . powers and

duties" for consistency in the revised title and with other titles

of the Code. In clause (A), the words "an international agreement"

are substituted for "any treaty, convention, or agreement that may

be in force between the United States and any foreign country or

foreign countries" for consistency and to eliminate unnecessary

words. In clause (C), the word "public" is added for consistency in

this part.

In subsection (b)(2), the words "obligation, duty, or liability

arising out of a contract or other" and "heretofore or hereafter"

are omitted as surplus. The words "government of a foreign country"

are substituted for "foreign country" for consistency in the

revised title and with other titles of the Code. The last sentence

is inserted to inform the reader that section 40106(b)(2) of the

revised title qualifies this subsection.

In subsection (c), before clause (1), the words "To assist" are

omitted as surplus. The words "carrying out" are substituted for

"developing and implementing" for consistency in the revised title

and with other titles of the Code. The word "both" is omitted as

surplus. In clause (8), the word "authorities" is substituted for

"agencies" for consistency in the revised title and with other

titles of the Code.

REPORT ON CERTAIN BILATERAL NEGOTIATIONS

Pub. L. 103-305, title V, Sec. 519, Aug. 23, 1994, 108 Stat.

1600, provided that: "The Secretary shall report every other month

to the Committee on Public Works and Transportation [now Committee

on Transportation and Infrastructure] of the House of

Representatives and the Committee on Commerce, Science, and

Transportation of the Senate on the status of all active aviation

bilateral and multilateral negotiations and informal

government-to-government consultations with United States aviation

trade partners."

WARSAW CONVENTION

49 STAT. 3000; TS 876

CONVENTION FOR THE UNIFICATION OF CERTAIN RULES RELATING TO

INTERNATIONAL TRANSPORTATION BY AIR

The President of the German Reich, the Federal President of the

Republic of Austria, His Majesty the King of the Belgians, the

President of the United States of Brazil, His Majesty the King of

the Bulgarians, the President of the Nationalist Government of

China, His Majesty the King of Denmark and Iceland, His Majesty the

King of Egypt, His Majesty the King of Spain, the Chief of State of

the Republic of Estonia, the President of the Republic of Finland,

the President of the French Republic, His Majesty the King of Great

Britain, Ireland, and the British Dominions Beyond the Seas,

Emperor of India, the President of the Hellenic Republic, His Most

Serene Highness the Regent of the Kingdom of Hungary, His Majesty

the King of Italy, His Majesty the Emperor of Japan, the President

of the Republic of Latvia, Her Royal Highness the Grand Duchess of

Luxemburg, the President of the United Mexican States, His Majesty

the King of Norway, Her Majesty the Queen of the Netherlands, the

President of the Republic of Poland, His Majesty the King of

Rumania, His Majesty the King of Sweden, the Swiss Federal Council,

the President of the Czechoslovak Republic, the Central Executive

Committee of the Union of Soviet Socialist Republics, the President

of the United States of Venezuela, His Majesty the King of

Yugoslavia:

Having recognized the advantage of regulating in a uniform manner

the conditions of international transportation by air in respect of

the documents used for such transportation and of the liability of

the carrier,

Have nominated to this end their respective Plenipotentiaries,

who being thereto duly authorized, have concluded and signed the

following convention:

CHAPTER I - SCOPE - DEFINITIONS

ARTICLE 1

(1) This convention shall apply to all international

transportation of persons, baggage, or goods performed by aircraft

for hire. It shall apply equally to gratuitous transportation by

aircraft performed by an air transportation enterprise.

(2) For the purpose of this convention the expression

"international transportation" shall mean any transportation in

which, according to the contract made by the parties, the place of

departure and the place of destination, whether or not there be a

break in the transportation or a transshipment, are situated either

within the territories of two High Contracting Parties, or within

the territory of a single High Contracting Party, if there is an

agreed stopping place within a territory subject to the

sovereignty, suzerainty, mandate or authority of another power,

even though that power is not a party to this convention.

Transportation without such an agreed stopping place between

territories subject to the sovereignty, suzerainty, mandate, or

authority of the same High Contracting Party shall not be deemed to

be international for the purposes of this convention.

(3) Transportation to be performed by several successive air

carriers shall be deemed, for the purposes of this convention, to

be one undivided transportation, if it has been regarded by the

parties as a single operation, whether it has been agreed upon

under the form of a single contract or of a series of contracts,

and it shall not lose its international character merely because

one contract or series of contracts is to be performed entirely

within a territory subject to the sovereignty, suzerainty, mandate,

or authority of the same High Contracting Party.

ARTICLE 2

(1) This convention shall apply to transportation performed by

the state or by legal entities constituted under public law

provided it falls within the conditions laid down in article 1.

(2) This convention shall not apply to transportation performed

under the terms of any international postal convention.

CHAPTER II - TRANSPORTATION DOCUMENTS

SECTION I - PASSENGER TICKET

ARTICLE 3

(1) For the transportation of passengers the carrier must deliver

a passenger ticket which shall contain the following particulars:

(a) The place and date of issue;

(b) The place of departure and of destination;

(c) The agreed stopping places, provided that the carrier may

reserve the right to alter the stopping places in case of

necessity, and that if he exercises that right, the alteration

shall not have the effect of depriving the transportation of its

international character;

(d) The name and address of the carrier or carriers;

(e) A statement that the transportation is subject to the rules

relating to liability established by this convention.

(2) The absence, irregularity, or loss of the passenger ticket

shall not affect the existence or the validity of the contract of

transportation, which shall none the less be subject to the rules

of this convention. Nevertheless, if the carrier accepts a

passenger without a passenger ticket having been delivered he shall

not be entitled to avail himself of those provisions of this

convention which exclude or limit his liability.

SECTION II - BAGGAGE CHECK

ARTICLE 4

(1) For the transportation of baggage, other than small personal

objects of which the passenger takes charge himself, the carrier

must deliver a baggage check.

(2) The baggage check shall be made out in duplicate, one part

for the passenger and the other part for the carrier.

(3) The baggage check shall contain the following particulars:

(a) The place and date of issue;

(b) The place of departure and of destination;

(c) The name and address of the carrier or carriers;

(d) The number of the passenger ticket;

(e) A statement that delivery of the baggage will be made to the

bearer of the baggage check;

(f) The number and weight of the packages;

(g) The amount of the value declared in accordance with article

22(2);

(h) A statement that the transportation is subject to the rules

relating to liability established by this convention.

(4) The absence, irregularity, or loss of the baggage check shall

not affect the existence or the validity of the contract of

transportation which shall none the less be subject to the rules of

this convention. Nevertheless, if the carrier accepts baggage

without a baggage check having been delivered, or if the baggage

check does not contain the particulars set out at (d), (f), and (h)

above, the carrier shall not be entitled to avail himself of those

provisions of the convention which exclude or limit his liability.

SECTION III - AIR WAYBILL

ARTICLE 5

(1) Every carrier of goods has the right to require the consignor

to make out and hand over to him a document called an "air

waybill": every consignor has the right to require the carrier to

accept this document.

(2) The absence, irregularity, or loss of this document shall not

affect the existence or the validity of the contract of

transportation which shall, subject to the provisions of article 9,

be none the less governed by the rules of this convention.

ARTICLE 6

(1) The air waybill shall be made out by the consignor in three

original parts and be handed over with the goods.

(2) The first part shall be marked "for the carrier", and shall

be signed by the consignor. The second part shall be marked "for

the consignee"; it shall be signed by the consignor and by the

carrier and shall accompany the goods. The third part shall be

signed by the carrier and handed by him to the consignor after the

goods have been accepted.

(3) The carrier shall sign on acceptance of the goods.

(4) The signature of the carrier may be stamped; that of the

consignor may be printed or stamped.

(5) If, at the request of the consignor, the carrier makes out

the air waybill, he shall be deemed, subject to proof to the

contrary, to have done so on behalf of the consignor.

ARTICLE 7

The carrier of goods has the right to require the consignor to

make out separate waybills when there is more than package.

ARTICLE 8

The air waybill shall contain the following particulars:

(a) The place and date of its execution;

(b) The place of departure and of destination;

(c) The agreed stopping places, provided that the carrier may

reserve the right to alter the stopping places in case of

necessity, and that if he exercises that right the alteration shall

not have the effect of depriving the transportation of its

international character;

(d) The name and address of the consignor;

(e) The name and address of the first carrier;

(f) The name and address of the consignee, if the case so

requires;

(g) The nature of the goods;

(h) The number of packages, the method of packing, and the

particular marks or numbers upon them;

(i) The weight, the quantity, the volume, or dimensions of the

goods;

(j) The apparent condition of the goods and of the packing;

(k) The freight, if it has been agreed upon, the date and place

of payment, and the person who is to pay it;

(l) If the goods are sent for payment on delivery, the price of

the goods, and, if the case so requires, the amount of the expenses

incurred;

(m) The amount of the value declared in accordance with article

22(2);

(n) The number of parts of the air waybill;

(o) The documents handed to the carrier to accompany the air

waybill;

(p) The time fixed for the completion of the transportation and a

brief note of the route to be followed, of these matters have been

agreed upon;

(q) A statement that the transportation is subject to the rules

relating to liability established by this convention.

ARTICLE 9

If the carrier accepts goods without an air waybill having been

made out, or if the air waybill does not contain all the

particulars set out in article 8(a) to (i), inclusive, and (q), the

carrier shall not be entitled to avail himself of the provisions of

this convention which exclude or limit his liability.

ARTICLE 10

(1) The consignor shall be responsible for the correctness of the

particulars and statements relating to the goods which he inserts

in the air waybill.

(2) The consignor shall be liable for all damages suffered by the

carrier or any other person by reason of the irregularity,

incorrectness or incompleteness of the said particulars and

statements.

ARTICLE 11

(1) The air waybill shall be prima facie evidence of the

conclusion of the contract, of the receipt of the goods and of the

conditions of transportation.

(2) The statements in the air waybill relating to the weight,

dimensions, and packing of the goods, as well as those relating to

the number of packages, shall be prima facie evidence of the facts

stated; those relating to the quantity, volume, and condition of

the goods shall not constitute evidence against the carrier except

so far as they both have been, and are stated in the air waybill to

have been, checked by him in the presence of the consignor, or

relate to the apparent condition of the goods.

ARTICLE 12

(1) Subject to his liability to carry out all his obligations

under the contract of transportation, the consignor shall have the

right to dispose of the goods by withdrawing them at the airport of

departure or destination, or by stopping them in the course of the

journey on any landing, or by calling for them to be delivered at

the place of destination, or in the course of the journey to a

person other than the consignee named in the air waybill, or by

requiring them to be returned to the airport of departure. He must

not exercise this right of disposition in such a way as to

prejudice the carrier or other consignors, and he must repay any

expenses occasioned by the exercise of this right.

(2) If it is impossible to carry out the orders of the consignor

the carrier must so inform him forthwith.

(3) If the carrier obeys the orders of the consignor for the

disposition of the goods without requiring the production of the

part of the air waybill delivered to the latter, he will be liable,

without prejudice to his right of recovery from the consignor, for

any damage which may be caused thereby to any person who is

lawfully in possession of that part of the air waybill.

(4) The right conferred on the consignor shall cease at the

moment when that of the consignee begins in accordance with article

13, below. Nevertheless, if the consignee declines to accept the

waybill or the goods, or if he cannot be communicated with, the

consignor shall resume his right of disposition.

ARTICLE 13

(1) Except in the circumstances set out in the preceding article,

the consignee shall be entitled, on arrival of the goods at the

place of destination, to require the carrier to hand over to him

the air waybill and to deliver the goods to him, on payment of the

charges due and on complying with the conditions of transportation

set out in the air waybill.

(2) Unless it is otherwise agreed, it shall be the duty of the

carrier to give notice to the consignee as soon as the goods

arrive.

(3) If the carrier admits the loss of the goods, or if the goods

have not arrived at the expiration of seven days after the date on

which they ought to have arrived, the consignee shall be entitled

to put into force against the carrier the rights which flow from

the contract of transportation.

ARTICLE 14

The consignor and the consignee can respectively enforce all the

rights given them by articles 12 and 13, each in his own name,

whether he is acting in his own interest or in the interest of

another, provided that he carries out the obligations imposed by

the contract.

ARTICLE 15

(1) Articles 12, 13, and 14 shall not affect either the relations

of the consignor and the consignee with each other or the relations

of third parties whose rights are derived either from the consignor

or from the consignee.

(2) The provisions of articles 12, 13, and 14 can only be varied

by express provision in the air waybill.

ARTICLE 16

(1) The consignor must furnish such information and attach to the

air waybill such documents as are necessary to meet the formalities

of customs, octroi, or police before the goods can be delivered to

the consignee. The consignor shall be liable to the carrier for any

damage occasioned by the absence, insufficiency, or irregularity of

any such information or documents, unless the damage is due to the

fault of the carrier or his agents.

(2) The carrier is under no obligation to enquire into the

correctness or sufficiency of such information or documents.

CHAPTER III - LIABILITY OF THE CARRIER

ARTICLE 17

The carrier shall be liable for damage sustained in the event of

the death or wounding of a passenger or any other bodily injury

suffered by a passenger, if the accident which caused the damage so

sustained took place on board the aircraft or in the course of any

of the operations of embarking or disembarking.

ARTICLE 18

(1) The carrier shall be liable for damage sustained in the event

of the destruction or loss of, or of damage to, any checked baggage

or any goods, if the occurrence which caused the damage so

sustained took place during the transportation by air.

(2) The transportation by air within the meaning of the preceding

paragraph shall comprise the period during which the baggage or

goods are in charge of the carrier, whether in an airport or on

board an aircraft, or in the case of a landing outside an airport,

in any place whatsoever.

(3) The period of the transportation by air shall not extend to

any transportation by land, by sea, or by river performed outside

an airport. If, however, such transportation takes place in the

performance of a contract for transportation by air, for the

purpose of loading, delivery or transshipment, any damage is

presumed, subject to proof to the contrary, to have been the result

of an event which took place during the transportation by air.

ARTICLE 19

The carrier shall be liable for damage occasioned by delay in the

transportation by air of passengers, baggage, or goods.

ARTICLE 20

(1) The carrier shall not be liable if he proves that he and his

agents have taken all necessary measures to avoid the damage or

that it was impossible for him or them to take such measures.

(2) In the transportation of goods and baggage the carrier shall

not be liable if he proves that the damage was occasioned by an

error in piloting, in the handling of the aircraft, or in

navigation and that, in all other respects, he and his agents have

taken all necessary measures to avoid the damage.

ARTICLE 21

If the carrier proves that the damage was caused by or

contributed to by the negligence of the injured person the court

may, in accordance with the provisions of its own law, exonerate

the carrier wholly or partly from his liability.

ARTICLE 22

(1) In the transportation of passengers the liability of the

carrier for each passenger shall be limited to the sum of 125,000

francs. Where, in accordance with the law of the court to which the

case is submitted, damages may be awarded in the form of periodical

payments, the equivalent capital value of the said payments shall

not exceed 125,000 francs. Nevertheless, by special contract, the

carrier and the passenger may agree to a higher limit of liability.

(2) In the transportation of checked baggage and of goods, the

liability of the carrier shall be limited to a sum of 250 francs

per kilogram, unless the consignor has made, at the time when the

package was handed over to the carrier, a special declaration of

the value at delivery and has paid a supplementary sum if the case

so requires. In that case the carrier will be liable to pay a sum

not exceeding the declared sum, unless he proves that that sum is

greater than the actual value to the consignor at delivery.

(3) As regards objects of which the passenger takes charge

himself the liability of the carrier shall be limited to 5,000

francs per passenger.

(4) The sums mentioned above shall be deemed to refer to the

French franc consisting of 65 1/2 milligrams of gold at the

standard of fineness of nine hundred thousandths. These sums may be

converted into any national currency in round figures.

ARTICLE 23

Any provision tending to relieve the carrier of liability or to

fix a lower limit than that which is laid down in this convention

shall be null and void, but the nullity of any such provision shall

not involve the nullity of the whole contract, which shall remain

subject to the provisions of this convention.

ARTICLE 24

(1) In the cases covered by articles 18 and 19 any action for

damages, however founded, can only be brought subject to the

conditions and limits set out in this convention.

(2) In the cases covered by article 17 the provisions of the

preceding paragraph shall also apply, without prejudice to the

questions as to who are the persons who have the right to bring

suit and what are their respective rights.

ARTICLE 25

(1) The carrier shall not be entitled to avail himself of the

provisions of this convention which exclude or limit his liability,

if the damage is caused by his willful misconduct or by such

default on his part as, in accordance with the law of the court to

which the case is submitted, is considered to be equivalent to

wilful misconduct.

(2) Similarly the carrier shall not be entitled to avail himself

of the said provisions, if the damage is caused under the same

circumstances by any agent of the carrier acting within the scope

of his employment.

ARTICLE 26

(1) Receipt by the person entitled to the delivery of baggage or

goods without complaint shall be prima facie evidence that the same

have been delivered in good condition and in accordance with the

document of transportation.

(2) In case of damage, the person entitled to delivery must

complain to the carrier forthwith after the discovery of the

damage, and, at the latest, within 3 days from the date of receipt

in the case of baggage and 7 days from the date of receipt in the

case of goods. In case of delay the complaint must be made at the

latest within 14 days from the date on which the baggage or goods

have been placed at his disposal.

(3) Every complaint must be made in writing upon the document of

transportation or by separate notice in writing dispatched within

the times aforesaid.

(4) Failing complaint within the times aforesaid, no action shall

lie against the carrier, save in the case of fraud on his part.

ARTICLE 27

In the case of the death of the person liable, an action for

damages lies in accordance with the terms of this convention

against those legally representing his estate.

ARTICLE 28

(1) An action for damages must be brought, at the option of the

plaintiff, in the territory of one of the High Contracting Parties,

either before the court of the domicile of the carrier or of his

principal place of business, or where he has a place of business

through which the contract has been made, or before the court at

the place of destination.

(2) Questions of procedure shall be governed by the law of the

court to which the case in submitted.

ARTICLE 29

(1) The right to damages shall be extinguished if an action is

not brought within 2 years, reckoned from the date of arrival at

the destination, or from the date on which the aircraft ought to

have arrived, or from the date on which the transportation stopped.

(2) The method of calculating the period of limitation shall be

determined by the law of the court to which the case is submitted.

ARTICLE 30

(1) In the case of transportation to be performed by various

successive carriers and falling within the definition set out in

the third paragraph of article 1, each carrier who accepts

passengers, baggage or goods shall be subject to the rules set out

in this convention, and shall be deemed to be one of the

contracting parties to the contract of transportation insofar as

the contract deals with that part of the transportation which is

performed under his supervision.

(2) In the case of transportation of this nature, the passenger

or his representative can take action only against the carrier who

performed the transportation during which the accident or the delay

occurred, save in the case where, by express agreement, the first

carrier has assumed liability for the whole journey.

(3) As regards baggage or goods, the passenger or consignor shall

have a right of action against the first carrier, and the passenger

or consignee who is entitled to delivery shall have a right of

action against the last carrier, and further, each may take action

against the carrier who performed the transportation during which

the destruction, loss, damage, or delay took place. These carriers

shall be jointly and severally liable to the passenger or to the

consignor or consignee.

CHAPTER IV - PROVISIONS RELATING TO COMBINED TRANSPORTATION

ARTICLE 31

(1) In the case of combined transportation performed partly by

air and partly by any other mode of transportation, the provisions

of this convention shall apply only to the transportation by air,

provided that the transportation by air falls within the terms of

article 1.

(2) Nothing in this convention shall prevent the parties in the

case of combined transportation from inserting in the document of

air transportation conditions relating to other modes of

transportation, provided that the provisions of this convention are

observed as regards the transportation by air.

CHAPTER V - GENERAL AND FINAL PROVISIONS

ARTICLE 32

Any clause contained in the contract and all special agreements

entered into before the damage occurred by which the parties

purport to infringe the rules laid down by this convention, whether

by deciding the law to be applied, or by altering the rules as to

jurisdiction, shall be null and void. Nevertheless for the

transportation of goods arbitration clauses shall be allowed,

subject to this convention, if the arbitration is to take place

within one of the jurisdictions referred to in the first paragraph

of article 28.

ARTICLE 33

Nothing contained in this convention shall prevent the carrier

either from refusing to enter into any contract of transportation

or from making regulations which do not conflict with the

provisions of this convention.

ARTICLE 34

This convention shall not apply to international transportation

by air performed by way of experimental trial by air navigation

enterprises with the view to the establishment of regular lines of

air navigation, nor shall it apply to transportation performed in

extraordinary circumstances outside the normal scope of an air

carrier's business.

ARTICLE 35

The expression "days" when used in this convention means current

days, not working days.

ARTICLE 36

This convention is drawn up in French in a single copy which

shall remain deposited in the archives of the Ministry for Foreign

Affairs of Poland and of which one duly certified copy shall be

sent by the Polish Government to the Government of each of the High

Contracting Parties.

ARTICLE 37

(1) This convention shall be ratified. The instruments of

ratification shall be deposited in the archives of the Ministry for

Foreign Affairs of Poland, which shall give notice of the deposit

to the Government of each of the High Contracting Parties.

(2) As soon as this convention shall have been ratified by five

of the High Contracting Parties it shall come into force as between

them on the nineteenth day after the deposit of the fifth

ratification. Thereafter it shall come into force between the High

Contracting Parties which shall have ratified and the High

Contracting Party which deposits its instrument of ratification on

the ninetieth day after the deposit.

(3) It shall be the duty of the Government of the Republic of

Poland to notify the Government of each of the High Contracting

Parties of the date on which this convention comes into force as

well as the date of the deposit of each ratification.

ARTICLE 38

(1) This convention shall, after it has come into force, remain

open for adherence by any state.

(2) The adherence shall be effected by a notification addressed

to the Government of the Republic of Poland, which shall inform the

Government of each of the High Contracting Parties thereof.

(3) The adherence shall take effect as from the ninetieth day

after the notification made to the Government of the Republic of

Poland.

ARTICLE 39

(1) Any one of the High Contracting Parties may denounce this

convention by a notification addressed to the Government of the

Republic of Poland, which shall at once inform the Government of

each of the High Contracting Parties.

(2) Denunciation shall take effect six months after the

notification of denunciation, and shall operate only as regards the

party which shall have proceeded to denunciation.

ARTICLE 40

(1) Any High Contracting Party may, at the time of signature or

of deposit of ratification or of adherence, declare that the

acceptance which it gives to this convention does not apply to all

or any of its colonies, protectorates, territories under mandate,

or any other territory subject to its sovereignty or its authority,

or any other territory under its suzerainty.

(2) Accordingly any High Contracting Party may subsequently

adhere separately in the name of all or any of its colonies,

protectorates, territories under mandate, or any other territory

subject to its sovereignty or to its authority or any other

territory under its suzerainty which have been thus excluded by its

original declaration.

(3) Any High Contracting Party may denounce this convention, in

accordance with its provisions, separately or for all or any of its

colonies, protectorates, territories under mandate, or any other

territory subject to its sovereignty or to its authority, or any

other territory under its suzerainty.

ARTICLE 41

Any High Contracting Party shall be entitled not earlier than two

years after the coming into force of this convention to call for

the assembling of a new international conference in order to

consider any improvements which may be made in this convention. To

this end it will communicate with the Government of the French

Republic which will take the necessary measures to make

preparations for such conference.

This convention, done at Warsaw on October 12, 1929, shall remain

open for signature until January 31, 1930.

ORDER OF CIVIL AERONAUTICS BOARD APPROVING INCREASES IN LIABILITY

LIMITATIONS OF WARSAW CONVENTION AND HAGUE PROTOCOL

Adopted by the Civil Aeronautics Board at its office in

Washington, D.C., on the 13th day of May 1966.

The Convention for the Unification of Certain Rules Relating to

International Transportation by Air, generally known as the Warsaw

Convention, creates a uniform body of law with respect to the

rights and responsibilities of passengers, shippers, and air

carriers in international air transportation. The United States

became a party to the Convention in 1934, and eventually over 90

countries likewise became parties to the Convention.(!1) On

November 15, 1965, the U.S. Government gave notice of denunciation

of the Convention, emphasizing that such action was solely because

of the Convention's low limits of liability for personal injury or

death to passengers. Pursuant to Article 39 of the Convention this

notice would become effective upon 6 months' notice, in this case,

May 15, 1966. Subsequently, the International Air Transport

Association (IATA) made efforts to effect an arrangement among air

carriers, foreign air carriers, and other carriers (including

carriers not members of IATA) providing the major portions of

international air carriage to and from the United States to

increase the limitations of liability now applicable to claims for

personal injury and death under the Convention and the Protocol.

The purpose of such action is to provide a basis upon which the

United States could withdrawn its notice of denunciation.

The arrangement proposed has been embodied in an agreement

(Agreement CAB 18900) between various air carriers, foreign air

carriers, and other carriers which has been filed with the Board

pursuant to section 412(a) of the Federal Aviation Act of 1958 and

Part 261 of the Board's economic regulations and assigned the

abovedesignated CAB number.

By this agreement, the parties thereto bind themselves to include

in their tariffs, effective May 16, 1966, a special contract in

accordance with Article 22(1) of the Convention or the Protocol

providing for a limit of liability for each passenger for death,

wounding, or other bodily injury of $75,000 inclusive of legal

fees, and, in case of a claim brought in a State where provision is

made for separate award of legal fees and costs, a limit of $58,000

exclusive of legal fees and costs. These limitations shall be

applicable to international transportation by the carrier as

defined in the Convention or Protocol which includes a point in the

United States as a point of origin, point of destination, or agreed

stopping place. The parties further agree to provide in their

tariffs that the Carrier shall not, with respect to any claim

arising out of the death, wounding, or other bodily injury of a

passenger, avail itself of any defense under Article 20(1) of the

Convention or the Convention as amended by the Protocol. The tariff

provisions would stipulate, however, that nothing therein shall be

deemed to affect the rights and liabilities of the Carrier with

regard to any claim brought by, on behalf of, or in respect of any

person who has willfully caused damage which results in death,

wounding, or other bodily injury of a passenger.

The carriers by the agreement further stipulate that they will,

at time of delivery of the tickets, furnish to each passenger

governed by the Convention or the Protocol and by the special

contract described above, a notice in 10 point type advising

international passengers of the limitations of liability

established by the Convention or the Protocol, or the higher

liability agreed to by the special contracts pursuant to the

Convention or Protocol as described above. The agreement is to

become effective upon arrival by this Board, and any carrier may

become a party to it by signing a counterpart thereof and

depositing it with the Board. Withdrawal from the agreement may be

effected by giving 12 months' written notice to the Board and the

other Carrier parties thereto.

As indicated, the decision of the U.S. Government to serve notice

to denounce the Convention was predicated upon the low liability

limits therein for personal injury and death. The Government

announced, however, that it would be prepared to withdraw the

Notice of Denunciation if, prior to its effective date, there is a

reasonable prospect for international agreement on limits of

liability for international transportation in the area of $100,000

per passenger or on uniform rules without any limit of liability,

and if pending such international agreement there is a provisional

arrangement among the principal international air carriers

providing for liability up to $75,000 per passenger.

Steps, have been taken by the signing carriers to have tariffs

become effective May 16, 1966, upon approval of this agreement,

which will increase by special contract their liability for

personal injury or death as described herein. The signatory

carriers provide by far the greater portion of international

transportation to, from, and within the United States. The

agreement will result in a salutory increase in the protection

given to passengers from the increased liability amounts and the

waiver of defenses under Article 20(1) of the Convention or

Protocol. The U.S. Government has concluded that such arrangements

warrant withdrawal of the Notice of Denunciation of the Warsaw

Convention. Implementation of the agreement will permit continued

adherence to the Convention with the benefits to be derived

therefrom, but without the imposition of the low liability limits

therein contained upon most international travel involving travel

to or from the United States. The stipulation that no tariff

provision shall be deemed to affect the rights and liabilities of

the carrier with regard to any claim brought by, on behalf of, or

in respect of any person who has willfully caused damage which

results in death, wounding or other bodily injury of a passenger

operates to diminish any incentive for sabotage.

Upon consideration of the agreement, and of matters relating

thereto of which the Board takes notice, the Board does not find

that the agreement is adverse to the public interest or in

violation of the Act and it will be approved.

Accordingly, pursuant to the provisions of the Federal Aviation

Act of 1958, and particularly sections 102, 204(a), and 412

thereof:

It is ordered, That: 1. Agreement CAB 18900 is approved.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 40106, 41705, 44907,

46101, 46301, 46316 of this title.

-FOOTNOTE-

(!1) The Convention was amended by the Protocol signed at Hague in

1955 which has never been ratified by the United States. The

Convention (subject to certain provisions) limits carriers'

liability for death or injury to passengers in international

transportation to 125,000 gold francs, or approximately

$8,300. The Protocol, subject to certain provisions, provides

for liability limitations of approximately $16,600.

-End-

-CITE-

49 USC Sec. 40106 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40106. Emergency powers

-STATUTE-

(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 and arrange

for the deviation in advance on a mutually agreeable basis.

(b) Suspension of Authority. - (1) When the President decides

that the government of a foreign country is acting inconsistently

with the Convention for the Suppression of Unlawful Seizure of

Aircraft or that the government of a foreign country allows

territory under its jurisdiction to be used as a base of operations

or training of, or as a sanctuary for, or arms, aids, or abets, a

terrorist organization that knowingly uses the unlawful seizure, or

the threat of an unlawful seizure, of an aircraft as an instrument

of policy, the President may suspend the authority of -

(A) an air carrier or foreign air carrier to provide foreign

air transportation to and from that foreign country;

(B) a person to operate aircraft in foreign air commerce to and

from that foreign country;

(C) a foreign air carrier to provide foreign air transportation

between the United States and another country that maintains air

service with the foreign country; and

(D) a foreign person to operate aircraft in foreign air

commerce between the United States and another country that

maintains air service with the foreign country.

(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

under this part.

(3) An air carrier or foreign air carrier may not provide foreign

air transportation, and a person may not operate aircraft in

foreign air commerce, in violation of a suspension of authority

under this subsection.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1103.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40106(a) 49 App.:1348(f). Aug. 23, 1958, Pub. L.

85-726, Sec. 307(f), 72

Stat. 750.

49 App.:1655(c)(1). Oct. 15, 1966, Pub. L.

89-670, Sec. 6(c)(1), 80

Stat. 938; Jan. 12, 1983,

Pub. L. 97-449, Sec. 7(b),

96 Stat. 2444.

40106(b) 49 App.:1514. Aug. 23, 1958, Pub. L.

85-726, 72 Stat. 731, Sec.

1114; added Aug. 5, 1974,

Pub. L. 93-366, Sec. 106, 88

Stat. 413.

49 Aug. 23, 1958, Pub. L.

App.:1551(b)(1)(E). 85-726, 72 Stat. 731, Sec.

1601(b)(1)(E); added Oct. 4,

1984, Pub. L. 98-443, Sec.

3(e), 98 Stat. 1704.

49 App.:1655(c)(1).

--------------------------------------------------------------------

In subsection (a), before clause (1), the words "armed forces"

are substituted for "national defense forces" because of 10:101.

The words "section 40103(b)(1) and (2) of this title" are

substituted for "this subchapter" as being more precise. In clauses

(1) and (2), the word "Administrator" in section 307(f) of the

Federal Aviation Act of 1958 (Public Law 85-726, 72 Stat. 750) is

retained on authority of 49:106(g). In clause (2), the words

"fully" and "required" are omitted as surplus.

In subsection (b)(1), the words "government of a foreign country"

are substituted for "foreign nation" for consistency in the revised

title and with other titles of the Code. Before clause (A), the

words "in a manner" and "in any way" are omitted as surplus. The

word "authority" is substituted for "right" as being more precise

and for consistency in the revised title.

In subsection (b)(2), the words "deemed to be" are omitted

because a legal conclusion is being stated.

In subsection (b)(3), the words "by the President" are omitted as

surplus.

AIRCRAFT PIRACY

The United States is a party to the Convention for the

Suppression of Unlawful Seizure of Aircraft, signed at The Hague,

Dec. 16, 1970, entered into force as to the United States, Oct. 14,

1971, 22 UST 1641.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 106, 40105, 44907, 46107,

46301 of this title.

-End-

-CITE-

49 USC Sec. 40107 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40107. Presidential transfers

-STATUTE-

(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.

(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. In making the transfer, the

President may transfer records, property, officers, and employees

of the Administration to the Department of Defense.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1104.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40107(a) 49 App.:1345. Aug. 23, 1958, Pub. L.

85-726, Secs. 302(e), 304,

72 Stat. 746, 749.

49 App.:1655(c)(1). Oct. 15, 1966, Pub. L.

89-670, Sec. 6(c)(1), 80

Stat. 938; Jan. 12, 1983,

Pub. L. 97-449, Sec. 7(b),

96 Stat. 2444.

40107(b) 49 App.:1343(c).

49 App.:1655(c)(1).

--------------------------------------------------------------------

In this section, the words "functions (including . . . parts of

functions)" are omitted as included in "duty, power, activity, or

facility".

In subsection (a), the words "of a department, agency, or

instrumentality of the executive branch of the United States

Government" are substituted for "the executive departments or

agencies of the Government" for consistency in the revised title

and with other titles of the United States Code. The word "unit" is

substituted for "organizational entity" for clarity. The words

"appropriate" and "civilian and military" are omitted as surplus.

The words "officers and employees" are substituted for "personnel"

for consistency in the revised title and with other titles of the

Code. The words "to the Administrator" are added for clarity.

In subsection (b), the text of 49 App.:1343(c) (words before

proviso) is omitted as obsolete. The words "Secretary of Defense"

are substituted for "Department of Defense" because of 10:133(a).

The words "prior to enactment of such proposed legislation" are

omitted as obsolete because the legislation was not enacted. The

word "appropriate" is omitted as surplus. The words "of the

Administration to the Department of Defense" are added for clarity.

-EXEC-

EX. ORD. NO. 10786. TRANSFER OF FUNCTIONS OF THE AIRWAYS

MODERNIZATION BOARD TO THE ADMINISTRATOR

Ex. Ord. No. 10786, Nov. 1, 1958, 23 F.R. 8573, provided:

Section 1. All functions (including powers, duties, activities,

and parts of functions) of the Airways Modernization Board,

including those of the Chairman thereof, are hereby transferred to

the Administrator of the Federal Aviation Agency; and all records,

property, facilities, employees, and unexpended balances of

appropriations, allocations, and other funds of the Airways

Modernization Board, are hereby transferred to the Federal Aviation

Agency [now Federal Aviation Administration].

Sec. 2. Such further measures and dispositions, if any, as the

Director of the Bureau of the Budget [now the Office of Management

and Budget] shall determine to be necessary in connection with the

transfers provided for hereinabove in respect of records, property,

facilities, employees, and balances shall be carried out in such

manner as he shall direct and by such agencies as he shall

designate.

Sec. 3. The provisions of this order shall become effective

concurrently with the entering upon office as Administrator of the

Federal Aviation Agency [now Federal Aviation Administration] of

the first person appointed as Administrator. The functions

transferred by section 1 hereof may be performed by the

Administrator until the effective date of the repeal [Aug. 23,

1958] of the Airways Modernization Act of 1957 [former 49 U.S.C.

1211 et seq.] effected by section 1401(d) of the Federal Aviation

Act of 1958 [Pub. L. 85-726].

Dwight D. Eisenhower.

EX. ORD. NO. 10797. DELEGATION OF AUTHORITY TO THE DIRECTOR OF THE

OFFICE OF MANAGEMENT AND BUDGET

Ex. Ord. No. 10797, Dec. 24, 1958, 23 F.R. 10391, provided:

Section 1. There is hereby delegated to the Director of the

Bureau of the Budget [now the Office of Management and Budget] all

authority vested in the President by the last sentence of section

304 [see 49 U.S.C. 40107(a)], and by sections 1502(a) and 1502(b),

of the Federal Aviation Act of 1958 (72 Stat. 749, 810) [Pub. L.

85-726, former 49 U.S.C. 1341 note], relating, respectively, (1) to

providing in connection with transfers of functions made under

other provisions of section 304, (i) for appropriate transfers of

records and property, and (ii) for necessary civilian and military

personnel to be made available from any office, department, or

other agency from which transfers of functions are so made; (2) to

determining the employees and property (including office equipment

and official equipment and official records) employed by the Civil

Aeronautics Board in the exercise and performance of those powers

and duties which are vested in and imposed upon it by the Civil

Aeronautics Act of 1938, as amended [former 49 U.S.C. 401 et seq.],

and which are vested by the Federal Aviation Act of 1958 [see 49

U.S.C. 40101 et seq.] in the Federal Aviation Agency, and to

specifying the date or dates upon which the transfers of officers,

employees, and property (including office equipment and official

records) under section 1502(a) shall occur; and (3) specifying the

date or dates upon which transfers of unexpended balances of

appropriations under section 1502(b) shall occur. Such further

measures and dispositions as the Director of the Bureau of the

Budget [now the Office of Management and Budget] shall determine to

be necessary in connection with the exercise of the authority

delegated to him by this section shall be carried out in such

manner as he shall direct and by such agencies as he shall

designate.

Sec. 2. Executive Order No. 10731 of October 10, 1957, delegating

to the Director of the Bureau of the Budget [now the Office of

Management and Budget] the authority vested in the President by a

certain provision of the Airways Modernization Act of 1957 [former

49 U.S.C. 1211 et seq.], is hereby revoked, such revocation to

become effective on the date the repeal of that act takes effect

under sections 1401(d) [repealing former 49 U.S.C. 1211-1215] and

1505(2) [former 49 U.S.C. 1301 note] of the Federal Aviation Act of

1958 (72 Stat. 806, 811).

Sec. 3. Except as otherwise provided in section 2 hereof, the

provisions of this order shall become effective immediately.

Dwight D. Eisenhower.

EX. ORD. NO. 11047. DELEGATION OF AUTHORITY TO SECRETARY OF DEFENSE

AND ADMINISTRATOR

Ex. Ord. No. 11047, Aug. 28, 1962, 27 F.R. 8665, as amended by

Ex. Ord. No. 12608, Sept. 9, 1987, 52 F.R. 34617, provided:

By the virtue of the authority vested in me by section 301 of

title 3 of the United States Code, and as President of the United

States, it is ordered as follows:

Section 1. The Secretary of Defense and the Administrator of the

Federal Aviation Administration are hereby designated and empowered

to exercise jointly, without the approval, ratification, or other

action of the President, the authority vested in the President by

the first sentence of section 304 of the Federal Aviation Act of

1958 (72 Stat. 749; 49 U.S.C. 1345 (first sentence)) [see 49 U.S.C.

40107(a)] to transfer functions (including, as used in this order,

powers, duties, activities, facilities, and parts of functions) as

described in that sentence to the extent that the said authority is

in respect of transfers from the Department of Defense or any

officer or organizational entity thereof to the Administrator of

the Federal Aviation Administration of functions relating to flight

inspection of air navigation facilities.

Sec. 2. The Administrator and the Secretary shall exercise the

authority hereinabove delegated to them only as they shall deem

such exercise to be necessary or desirable in the interest of

promoting, in respect of either civil or military aviation or both,

safe and efficient air navigation and air traffic control.

Sec. 3. (a) To the extent necessitated by transfers of functions

effected under the provisions of Section 1 of this order:

(1) Transfers of balances of appropriations available and

necessary to finance and discharge the transferred functions shall

be made under the authority of Section 202(b) of the Budget and

Accounting Procedures Act of 1950 (31 U.S.C. 581c(b) [see 31 U.S.C.

1531]) as affected by the provisions of section 1(k) of Executive

Order No. 10530 of May 10, 1954 [set out as a note under section

301 of Title 3, The President].

(2) Provisions for appropriate transfers of records and property

shall be made under the authority of the last sentence of Section

304 of the Federal Aviation Act of 1958 [see 49 U.S.C. 40107(a)] as

affected by the provisions of Section 1 of Executive Order No.

10797 of December 24, 1958 [set out above].

(b) Neither this order nor the said Executive Order No. 10797

shall be deemed to require or authorize the transfer of any

civilian or military personnel from the Department of Defense to

the Federal Aviation Administration, under authority of the said

Section 304 [see 49 U.S.C. 40107(a)], in connection with transfers

of functions effected under the provisions of Section 1 of this

order.

Sec. 4. (a) In order to facilitate the orderly and timely

accomplishment of the transfers and other arrangements mentioned in

Section 3(a) of this order, the Secretary of Defense and the

Administrator of the Federal Aviation Administration shall transmit

to the Director of the Office of Management and Budget, not less

than 30 days prior to the execution by them of any order or other

transfer instrument in pursuance of the provisions of Section 1 of

this order, all appropriate information in respect to any transfers

or other arrangements proposed to be made in connection therewith

under the provisions of Section 3 hereof, together with copy of the

order or other transfer instrument proposed to be executed by them.

(b) In connection with any particular action or actions under

Section 1 of this order, the Director of the Office of Management

and Budget may either waive the requirements of Section 4(a),

above, or reduce the 30 day period there prescribed.

EX. ORD. NO. 11161. TRANSFER OF FEDERAL AVIATION AGENCY TO DEFENSE

DEPARTMENT IN EVENT OF WAR

Ex. Ord. No. 11161, eff. July 7, 1964, 29 F.R. 9317, as amended

by Ex. Ord. No. 11382, eff. Nov. 28, 1967, 32 F.R. 16247, provided:

WHEREAS Section 302(e) of the Federal Aviation Act of 1958 [see

49 U.S.C. 40107(b)] provides, in part, that in the event of war the

President by Executive order may transfer to the Department of

Defense any functions (including powers, duties, activities,

facilities, and parts of functions) of the Federal Aviation

Administration; and

WHEREAS it appears that the defense of the United States would

require the transfer of the Federal Aviation Administration to the

Department of Defense in the event of war; and

WHEREAS if any such transfer were to be made it would be

essential to the defense of the United States that the transition

be accomplished promptly and with maximum ease and effectiveness;

and

WHEREAS these objectives require that the relationships that

would obtain in the event of such a transfer as between the Federal

Aviation Administration and the Department of Defense be understood

in advance by the two agencies concerned and be developed in

necessary detail by them in advance of transfer:

NOW, THEREFORE, by virtue of the authority vested in me by

Section 302(e) (72 Stat. 746; 49 U.S.C. 1343(c)) [see 49 U.S.C.

40107(b)], and as President of the United States and Commander in

Chief of the Armed Forces of the United States, it is hereby

ordered as follows:

Section 1. The Secretary of Defense and the Secretary of

Transportation are hereby directed to prepare and develop plans,

procedures, policies, programs, and courses of action in

anticipation of the probable transfer of the Federal Aviation

Administration to the Department of Defense in the event of war.

Those plans, policies, procedures, programs, and courses of action

shall be prepared and developed in conformity with the

following-described standards and conditions -

(A) The Federal Aviation Administration will function as an

adjunct of the Department of Defense with the Federal Aviation

Administrator being responsible directly to the Secretary of

Defense and subject to his authority, direction, and control to the

extent deemed by the Secretary to be necessary for the discharge of

his responsibilities as Secretary of Defense.

(B) To the extent deemed by the Secretary of Defense to be

necessary for the accomplishment of the military mission, he will

be empowered to direct the Administrator to place operational

elements of the Federal Aviation Administration under the direct

operational control of appropriate military commanders.

(C) While functioning as an adjunct of the Department of Defense,

the Federal Aviation Administration will remain organizationally

intact and the Administrator thereof will retain responsibility for

administration of his statutory functions, subject to the

authority, direction, and control of the Secretary of Defense to

the extent deemed by the Secretary to be necessary for the

discharge of his responsibilities as Secretary of Defense.

Sec. 2. In furtherance of the objectives of the foregoing

provisions of this order, the Secretary of Defense and the

Secretary of Transportation shall, to the extent permitted by law,

make such arrangements and take such actions as they deem necessary

to assure -

(A) That the functions of the Federal Aviation Administration are

performed during any period of national emergency short of war in a

manner that will assure that essential national defense

requirements will be satisfied during any such period of national

emergency.

(B) Consistent with the provisions of paragraphs (A), (B), and

(C) of Section 1 of this order, that any transfer of the Federal

Aviation Administration to the Department of Defense, in the event

of war, will be accomplished smoothly and rapidly and effective

operation of the agencies and functions affected by the transfer

will be achieved after the transfer.

Lyndon B. Johnson.

-End-

-CITE-

49 USC Sec. 40108 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40108. Training schools

-STATUTE-

(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.

(b) Attendance. - The Administrator 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 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.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1104.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40108(a) 49 App.:1354(d) Aug. 23, 1958, Pub. L.

(1st sentence). 85-726, Sec. 313(d), 72

Stat. 753.

49 App.:1655(c)(1). Oct. 15, 1966, Pub. L.

89-670, Sec. 6(c)(1), 80

Stat. 938; Jan. 12, 1983,

Pub. L. 97-449, Sec. 7(b),

96 Stat. 2444.

40108(b) 49 App.:1354(d)

(2d-last sentences).

49 App.:1655(c)(1).

--------------------------------------------------------------------

In this section, the word "Administrator" in section 313(d) of

the Federal Aviation Act of 1958 (Public Law 85-726, 72 Stat. 753)

is retained on authority of 49:106(g). The words "school or" are

omitted because of 1:1.

In subsection (a), the words "officers and" are added for clarity

and consistency in the revised title and with other titles of the

United States Code. The words "to carry out duties, powers, and

activities of the Administrator" are substituted for "in those

subjects necessary for the proper performance of all authorized

functions of the Administration" for clarity and consistency in the

revised title.

In subsection (b), the words "officers and employees" are

substituted for "personnel", the words "departments, agencies, or

instrumentalities of the United States Government" are substituted

for "governmental", and the words "governments of foreign

countries" are substituted for "foreign governments", for

consistency in the revised title and with other titles of the Code.

The words "courses given in", "sufficient", and "appropriate" are

omitted as surplus. The text of 49 App.:1354(d) (3d sentence) is

omitted as unnecessary because chapter 41 of title 5, United States

Code, applies to all training of employees. The words "or both" are

substituted for "(3) in part as provided under clause (1) and in

part as provided under clause (2)" to eliminate unnecessary words.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 106 of this title.

-End-

-CITE-

49 USC Sec. 40109 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40109. Authority to exempt

-STATUTE-

(a) Air Carriers and Foreign Air Carriers Not Engaged Directly in

Operating Aircraft. - (1) The Secretary of Transportation may

exempt from subpart II of this part -

(A) an air carrier not engaged directly in operating aircraft

in air transportation; or

(B) a foreign air carrier not engaged directly in operating

aircraft in foreign air transportation.

(2) The exemption is effective to the extent and for periods that

the Secretary decides are in the public interest.

(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 decides the exemption is in the public interest.

(c) Other Economic Regulation. - Except as provided in this

section, the Secretary may exempt to the extent the Secretary

considers necessary a person or class of persons from a provision

of chapter 411, chapter 413 (except sections 41307 and

41310(b)-(f)), chapter 415 (except sections 41502, 41505, and

41507-41509), chapter 417 (except sections 41703, 41704, 41710,

41713, and 41714), chapter 419, subchapter II of chapter 421, and

sections 44909 and 46301(b) of this title, or a regulation or term

prescribed under any of those provisions, when the Secretary

decides that the exemption is consistent with the public interest.

(d) Labor Requirements. - The Secretary may not exempt an air

carrier from section 42112 of this title. However, the Secretary

may exempt from section 42112(b)(1) and (2) an air carrier not

providing scheduled air transportation, and the operations

conducted during daylight hours by an air carrier providing

scheduled air transportation, when the Secretary decides that -

(1) because of the limited extent of, or unusual circumstances

affecting, the operation of the air carrier, the enforcement of

section 42112(b)(1) and (2) of this title is or would be an

unreasonable burden on the air carrier that would obstruct its

development and prevent it from beginning or continuing

operations; and

(2) the exemption would not affect adversely the public

interest.

(e) Maximum Flying Hours. - The Secretary may not exempt an air

carrier under this section from a provision referred to in

subsection (c) of this section, or a regulation or term prescribed

under any of those provisions, that sets maximum flying hours for

pilots or copilots.

(f) Smaller Aircraft. - (1) An air carrier is exempt from section

41101(a)(1) of this title, and the Secretary may exempt an air

carrier from another provision of subpart II of this part, if the

air carrier -

(A)(i) provides passenger transportation only with aircraft

having a maximum capacity of 55 passengers; or

(ii) provides the transportation of cargo only with aircraft

having a maximum payload of less than 18,000 pounds; and

(B) complies with liability insurance requirements and other

regulations the Secretary prescribes.

(2) The Secretary may increase the passenger or payload

capacities when the public interest requires.

(3)(A) An exemption under this subsection applies to an air

carrier providing air transportation between 2 places in Alaska, or

between Alaska and Canada, only if the carrier is authorized by

Alaska to provide the transportation.

(B) The Secretary may limit the number or location of places that

may be served by an air carrier providing transportation only in

Alaska under an exemption from section 41101(a)(1) of this title,

or the frequency with which the transportation may be provided,

only when the Secretary decides that providing the transportation

substantially impairs the ability of an air carrier holding a

certificate issued by the Secretary to provide its authorized

transportation, including the minimum transportation requirement

for Alaska specified under section 41732(b)(1)(B) of this title.

(g) Emergency Air Transportation by Foreign Air Carriers. - (1)

To the extent that the Secretary decides an exemption is in the

public interest, the Secretary may exempt by order a foreign air

carrier from the requirements and limitations of this part for not

more than 30 days to allow the foreign air carrier to carry

passengers or cargo in interstate air transportation in certain

markets if the Secretary finds that -

(A) because of an emergency created by unusual circumstances

not arising in the normal course of business, air carriers

holding certificates under section 41102 of this title cannot

accommodate traffic in those markets;

(B) all possible efforts have been made to accommodate the

traffic by using the resources of the air carriers, including the

use of -

(i) foreign aircraft, or sections of foreign aircraft, under

lease or charter to the air carriers; and

(ii) the air carriers' reservations systems to the extent

practicable;

(C) the exemption is necessary to avoid unreasonable hardship

for the traffic in the markets that cannot be accommodated by the

air carriers; and

(D) granting the exemption will not result in an unreasonable

advantage to any party in a labor dispute where the inability to

accommodate traffic in a market is a result of the dispute.

(2) When the Secretary grants an exemption to a foreign air

carrier under this subsection, the Secretary shall -

(A) ensure that air transportation that the foreign air carrier

provides under the exemption is made available on reasonable

terms;

(B) monitor continuously the passenger load factor of air

carriers in the market that hold certificates under section 41102

of this title; and

(C) review the exemption at least every 30 days to ensure that

the unusual circumstances that established the need for the

exemption still exist.

(3) The Secretary may renew an exemption (including renewals)

under this subsection for not more than 30 days. An exemption may

continue for not more than 5 days after the unusual circumstances

that established the need for the exemption cease.

(h) Notice and Opportunity for Hearing. - The Secretary may act

under subsections (d) and (f)(3)(B) of this section only after

giving the air carrier notice and an opportunity for a hearing.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1104; Pub. L.

104-287, Sec. 5(65), Oct. 11, 1996, 110 Stat. 3395.)

-MISC1-

HISTORICAL AND REVISION NOTES

PUB. L. 103-272

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40109(a) 49 App.:1301(3) Aug. 23, 1958, Pub. L.

(proviso). 85-726, Secs. 101(3)

(proviso), 307(e),

416(b)(2), 72 Stat. 737,

750, 771.

49 App.:1386(b)(3). Aug. 23, 1958, Pub. L.

85-726, 72 Stat. 731, Sec.

416(b)(3)-(6); added Oct.

24, 1978, Pub. L. 95-504,

Secs. 31(b), 32, 92 Stat.

1732.

49 Aug. 23, 1958, Pub. L.

App.:1551(b)(1)(E). 85-726, 72 Stat. 731, Sec.

1601(b)(1)(E); added Oct. 4,

1984, Pub. L. 98-443, Sec.

3(e), 98 Stat. 1704.

40109(b) 49 App.:1348(e).

49

App.:1551(b)(1)(E).

49 App.:1655(c)(1). Oct. 15, 1966, Pub. L.

89-670, Sec. 6(c)(1), 80

Stat. 938; Jan. 12, 1983,

Pub. L. 97-449, Sec. 7(b),

96 Stat. 2444.

40109(c) 49 App.:1386(b)(1). Aug. 23, 1958, Pub. L.

85-726, Sec. 416(b)(1), 72

Stat. 771; restated Oct. 24,

1978, Pub. L. 95-504, Sec.

31(a), 92 Stat. 1731.

49

App.:1551(b)(1)(E).

40109(d) 49 App.:1386(b)(2)

(less words between

6th and 7th commas,

proviso).

49

App.:1551(b)(1)(E).

40109(e) 49 App.:1386(b)(2)

(proviso).

49

App.:1551(b)(1)(E).

40109(f) 49 App.:1386(b)(4),

(5), (6) (less

words between 5th

and 6th commas).

49

App.:1551(b)(1)(E).

40109(g) 49 App.:1386(b)(7). Aug. 23, 1958, Pub. L.

85-726, 72 Stat. 731, Sec.

416(b)(7); added Feb. 15,

1980, Pub. L. 96-192, Sec.

13, 94 Stat. 39.

49

App.:1551(b)(1)(E).

40109(h) 49 App.:1386(b)(2)

(words between 6th

and 7th commas),

(6) (words between

5th and 6th commas).

49

App.:1551(b)(1)(E).

--------------------------------------------------------------------

In this section, the words "requirements of", "term", and "or

limitation" are omitted as surplus. The word "rule" is omitted as

being synonymous with "regulation". The word "unreasonable" is

substituted for "undue" for consistency in the revised title and

with other titles of the United States Code.

In subsection (a)(1), before clause (A), the words "by order" are

omitted as unnecessary because of 5:ch. 5, subch. II. The word

"exempt" is substituted for "relieve" for consistency in this

section.

In subsection (a)(2), the words "that the Secretary decides" are

added for clarity.

In subsections (b), (c), and (f)(1)(B), the words "from time to

time" are omitted as unnecessary.

In subsection (b), the word "Administrator" in section 307(e) of

the Federal Aviation Act of 1958 (Public Law 85-726, 72 Stat. 750)

is retained on authority of 49:106(g).

In subsection (d), before clause (1), the words "to the extent"

are omitted as surplus.

In subsection (f)(1), before clause (A), the words "Subject to

paragraph (5) of this subsection" and "in air transportation" are

omitted as surplus. The words "the Secretary may exempt" are

substituted for "as may be prescribed in regulations promulgated by

the Board" for clarity and to eliminate unnecessary words. In

clause (A)(ii), the word "capacity" is omitted as surplus. In

clause (B), the word "reasonable" is omitted as surplus. The word

"prescribes" is substituted for "adopt" for consistency in the

revised title and with other titles of the Code. The words "in the

public interest" are omitted as surplus.

In subsection (f)(2), the words "by regulation" are omitted as

surplus. The word "payload" is substituted for "property" for

consistency in this subsection. The words "specified in this

paragraph" are omitted as surplus.

In subsection (f)(3), the words "the State of" are omitted as

surplus.

In subsection (f)(3)(A), the words "under this subsection" are

substituted for "from section 1371 of this title or any other

requirement of this chapter", the words "2 places" are substituted

for "points both of which are", and the word "between" is

substituted for "one of which is in . . . and the other in", to

eliminate unnecessary words.

In subsection (f)(3)(B), the word "only" is added for clarity.

The words "promulgated by the Board", "by such air carrier to

points within such State", and "but not limited to" are omitted as

surplus. The word "Alaska" is substituted for "such State" for

clarity. The cross-reference is to section 41732(b)(1)(B) to

correct an error in the source provisions. The cross-reference in

49 App.:1386(b)(6) to 49 App.:1389(c)(2) should have been to 49

App.:1389(f)(2). This error was not corrected when 49 App.:1389 was

restated by section 202(b) of the Airport and Airway Safety and

Capacity Expansion Act of 1987 (Public Law 100-223, 101 Stat.

1508). The comparable provision is 49 App.:1389(k)(1)(A)(ii),

restated as section 41732(b)(1)(B).

In subsection (g), the word "exemption" is substituted for

"authorization" and "authority" for clarity and consistency.

In subsection (g)(1), before clause (A), the words "required", "a

period", and "to the extent necessary" are omitted as surplus. The

word "mail" is omitted as being included in "cargo". In clause (B),

before subclause (i), the words "for example" are omitted as

surplus.

In subsection (g)(3), the words "a period" are omitted as

surplus.

In subsection (h), the words "The Secretary may act under

subsections (d) and (f)(3)(B) of this section" are added because of

the restatement. The word "notice" does not appear in 49

App.:1386(b)(6) (words between 5th and 6th commas) but is made

applicable to both of the restated source provisions for

consistency with subchapter II of chapter 5 of title 5, United

States Code. The words "opportunity for a" are added for

consistency in the revised title.

PUB. L. 104-287

This amends 49:40109(c) to correct an error in the codification

enacted by section 1 of the Act of July 5, 1994 (Public Law

103-272, 108 Stat. 1105), to include in the cross-reference

sections enacted after the cutoff date for the codification of

title 49 as enacted by section 1 of the Act (Public Law 103-272,

108 Stat. 745), and to make it easier to include future sections in

the cross-reference by restating it in terms of chapters.

AMENDMENTS

1996 - Subsec. (c). Pub. L. 104-287, Sec. 5(65)(B), substituted

"sections 44909 and 46301(b)" for "section 46301(b)".

Pub. L. 104-287, Sec. 5(65)(A), substituted "chapter 413 (except

sections 41307 and 41310(b)-(f)), chapter 415 (except sections

41502, 41505, and 41507-41509), chapter 417 (except sections 41703,

41704, 41710, 41713, and 41714)," for "sections 41301-41306,

41308-41310(a), 41501, 41503, 41504, 41506, 41510, 41511, 41701,

41702, 41705-41709, 41711, 41712, and 41731-41742,".

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-287 effective July 5, 1994, see section

8(1) of Pub. L. 104-287, set out as a note under section 5303 of

this title.

AUTHORITY TO GRANT EXEMPTIONS TO GOVERNMENT AIRCRAFT

Pub. L. 103-411, Sec. 3(b), Oct. 25, 1994, 108 Stat. 4237,

provided that:

"(1) In general. - The Administrator of the Federal Aviation

Administration may grant an exemption to any unit of Federal,

State, or local government from any requirement of part A of

subtitle VII of title 49, United States Code, that would otherwise

be applicable to current or future aircraft of such unit of

government as a result of the amendment made by subsection (a) of

this section [amending section 40102 of this title].

"(2) Requirements. - The Administrator may grant an exemption

under paragraph (1) only if -

"(A) the Administrator finds that granting the exemption is

necessary to prevent an undue economic burden on the unit of

government; and

"(B) the Administrator certifies that the aviation safety

program of the unit of government is effective and appropriate to

ensure safe operations of the type of aircraft operated by the

unit of government."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 106, 41505, 41703, 41710,

41733, 41738 of this title; title 39 section 5402.

-End-

-CITE-

49 USC Sec. 40110 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40110. General procurement authority

-STATUTE-

(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;

(2) may dispose of an interest in property for adequate

compensation; and

(3) may construct and improve laboratories and other test

facilities.

(b) Purchase of Housing Units. -

(1) Authority. - In carrying out this part, the Administrator

may purchase a housing unit (including a condominium or a housing

unit in a building owned by a cooperative) that is located

outside the contiguous United States if the cost of the unit is

$300,000 or less.

(2) Adjustments for inflation. - For fiscal years beginning

after September 30, 1997, the Administrator may adjust the dollar

amount specified in paragraph (1) to take into account increases

in local housing costs.

(3) Continuing obligations. - Notwithstanding section 1341 of

title 31, the Administrator may purchase a housing unit under

paragraph (1) even if there is an obligation thereafter to pay

necessary and reasonable fees duly assessed upon such unit,

including fees related to operation, maintenance, taxes, and

insurance.

(4) Certification to congress. - The Administrator may purchase

a housing unit under paragraph (1) only if, at least 30 days

before completing the purchase, the Administrator transmits to

the Committee on Transportation and Infrastructure of the House

of Representatives and the Committee on Commerce, Science, and

Transportation of the Senate a report containing -

(A) a description of the housing unit and its price;

(B) a certification that the price does not exceed the median

price of housing units in the area; and

(C) a certification that purchasing the housing unit is the

most cost-beneficial means of providing necessary

accommodations in carrying out this part.

(5) Payment of fees. - The Administrator may pay, when due,

fees resulting from the purchase of a housing unit under this

subsection from any amounts made available to the Administrator.

(c) Duties and Powers. - When carrying out subsection (a) of this

section, the Administrator of the Federal Aviation Administration -

(1) is the senior procurement executive referred to in section

16(3) of the Office of Federal Procurement Policy Act (41 U.S.C.

414(3)) for approving the justification for using procedures

other than competitive procedures, as required under section

303(f)(1)(B)(iii) of the Federal Property and Administrative

Services Act of 1949 (41 U.S.C. 253(f)(1)(B)(iii)); and

(2) may -

(A) notwithstanding section 1341(a)(1) of title 31, lease an

interest in property for not more than 20 years;

(B) consider the reasonable probable future use of the

underlying land in making an award for a condemnation of an

interest in airspace;

(C) construct, or acquire an interest in, a public building

(as defined in section 3301(a) of title 40) only under a

delegation of authority from the Administrator of General

Services;

(D) use procedures other than competitive procedures, as

provided under section 303(c) of the Federal Property and

Administrative Services Act of 1949 (41 U.S.C. 253(c));

(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; and

(F) dispose of property under subsection (a)(2) of this

section, except for airport and airway property and technical

equipment used for the special purposes of the Administration,

only under sections 121, 123, and 126 and chapter 5 of title

40.

(d) Acquisition Management System. -

(1) In general. - In consultation with such non-governmental

experts in acquisition management systems as the Administrator

may employ, and notwithstanding provisions of Federal acquisition

law, the Administrator shall develop and implement, not later

than January 1, 1996, an acquisition management system for the

Administration that addresses the unique needs of the agency and,

at a minimum, provides for more timely and cost-effective

acquisitions of equipment and materials.

(2) Applicability of federal acquisition law. - The following

provisions of Federal acquisition law shall not apply to the new

acquisition management system developed and implemented pursuant

to paragraph (1):

(A) Title III of the Federal Property and Administrative

Services Act of 1949 (41 U.S.C. 252-266).

(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 all reasonable opportunities to be awarded contracts shall

be provided to small business concerns and small business

concerns owned and controlled by socially and economically

disadvantaged individuals.

(E) The Competition in Contracting Act.

(F) Subchapter V of chapter 35 of title 31, relating to the

procurement protest system.

(G) The Brooks Automatic Data Processing Act (40 U.S.C.

759).(!1)

(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.

(3) Certain provisions of the office of federal procurement

policy act. - Notwithstanding paragraph (2)(B), section 27 of the

Office of Federal Procurement Policy Act (41 U.S.C. 423) shall

apply to the new acquisition management system developed and

implemented under paragraph (1) with the following modifications:

(A) Subsections (f) and (g) shall not apply.

(B) Within 90 days after the date of the enactment of the

Wendell H. Ford Aviation Investment and Reform Act for the 21st

Century, the Administrator shall adopt definitions for the

acquisition management system that are consistent with the

purpose and intent of the Office of Federal Procurement Policy

Act.

(C) After the adoption of those definitions, the criminal,

civil, and administrative remedies provided under the Office of

Federal Procurement Policy Act apply to the acquisition

management system.

(D) In the administration of the acquisition management

system, the Administrator may take adverse personnel action

under section 27(e)(3)(A)(iv) of the Office of Federal

Procurement Policy Act in accordance with the procedures

contained in the Administration's personnel management system.

(4) Effective date. - This subsection shall take effect on

April 1, 1996.

(e) Prohibition on Release of Offeror Proposals. -

(1) General rule. - Except as provided in paragraph (2), a

proposal in the possession or control of the Administrator may

not be made available to any person under section 552 of title 5.

(2) Exception. - Paragraph (1) shall not apply to any portion

of a proposal of an offeror the disclosure of which is authorized

by the Administrator pursuant to procedures published in the

Federal Register. The Administrator shall provide an opportunity

for public comment on the procedures for a period of not less

than 30 days beginning on the date of such publication in order

to receive and consider the views of all interested parties on

the procedures. The procedures shall not take effect before the

60th day following the date of such publication.

(3) Proposal defined. - In this subsection, the term "proposal"

means information contained in or originating from any proposal,

including a technical, management, or cost proposal, submitted by

an offeror in response to the requirements of a solicitation for

a competitive proposal.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1106; Pub. L.

103-429, Sec. 6(48), (80), Oct. 31, 1994, 108 Stat. 4384, 4388;

Pub. L. 104-264, title XII, Sec. 1201, Oct. 9, 1996, 110 Stat.

3279; Pub. L. 106-181, title III, Sec. 307(b), title VII, Sec. 703,

Apr. 5, 2000, 114 Stat. 125, 156; Pub. L. 107-217, Sec. 3(n)(5),

Aug. 21, 2002, 116 Stat. 1302.)

-MISC1-

HISTORICAL AND REVISION NOTES

PUB. L. 103-272

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40110(a) 49 App.:1344(a)(1) Aug. 23, 1958, Pub. L.

(less term of 85-726, Sec. 303(a)-(d), 72

lease), (2) (words Stat. 747; May 21, 1970,

before 1st Pub. L. 91-258, Sec.

semicolon), (3). 51(a)(1), 84 Stat. 234; July

12, 1976, Pub. L. 94-353,

Sec. 16, 90 Stat. 882; Oct.

19, 1980, Pub. L. 96-470,

Sec. 112(e), 94 Stat. 2240;

Jan. 12, 1983, Pub. L.

97-449, Sec. 7(b), 96 Stat.

2444; restated Nov. 5, 1990,

Pub. L. 101-508, Sec.

9118(a), 104 Stat. 1388-365.

40110(b)(1) 49 App.:1344(d).

40110(b) 49 App.:1344(a)(1)

(2)(A) (related to term of

lease).

40110(b) 49 App.:1344(b)(1).

(2)(B)

40110(b) 49 App.:1344(b)(2).

(2)(C)

40110(b) 49 App.:1344(c).

(2)(D)

40110(b) 49 App.:1344(g). Aug. 23, 1958, Pub. L.

(2)(E) 85-726, 72 Stat. 747, Sec.

303(g); added Oct. 31, 1992,

Pub. L. 102-581, Sec.

201(a), 106 Stat. 4890.

40110(b) 49 App.:1344(a)(2)

(2)(F) (words after 1st

semicolon).

--------------------------------------------------------------------

In this section, the word "Administrator" in section 303(a)-(d)

of the Federal Aviation Act of 1958 (Public Law 85-726, 72 Stat.

747) is retained on authority of 49:106(g).

In subsection (a), before clause (1), the words "In carrying out

this part" are added for clarity. The words "on behalf of the

United States . . . where appropriate" are omitted as surplus. In

clause (1), the words "made by the Congress", "by purchase,

condemnation . . . or otherwise", and "easements through or other"

are omitted as surplus. In clause (2), the words "by sale, lease,

or otherwise" and "real or personal" are omitted as surplus. In

clause (3), the word "renovate" is omitted as surplus. The words

"and to purchase or otherwise acquire real property required

therefor" are omitted as surplus because of the authority of the

Administrator to acquire real property under clause (1) of this

subsection.

In subsection (b)(1), the words "procedures other than

competitive procedures" are substituted for "noncompetitive

procedures" for consistency with subsection (b)(2)(D) of this

section and 41:253(f).

In subsection (b)(2)(B), the text of 49 App.:1344(b)(1) (words

before semicolon) and the words "easements through or other" are

omitted as surplus.

In subsection (b)(2)(C), the words "by purchase, condemnation, or

lease" are omitted as surplus.

Subsection (b)(2)(E) is substituted for 49 App.:1344(g) to

eliminate the cross-references to other laws and for clarity and is

based on the text of 10:2304(c)(1).

PUB. L. 103-429

This amends 49:40110(a) to clarify the restatement of 49

App.:1344(a)(1)-(3) by section 1 of the Act of July 5, 1994 (Public

Law 103-272, 108 Stat. 1106).

-REFTEXT-

REFERENCES IN TEXT

The Federal Property and Administrative Services Act of 1949,

referred to in subsec. (d)(2)(A), is act June 30, 1949, ch. 288, 63

Stat. 377, as amended. Title III of the Act is classified generally

to subchapter IV (Sec. 251 et seq.) of chapter 4 of Title 41,

Public Contracts. For complete classification of this Act to the

Code, see Tables.

The Office of Federal Procurement Policy Act, referred to in

subsec. (d)(2)(B), (3)(B), (C), is Pub. L. 93-400, Aug. 30, 1974,

88 Stat. 796, as amended, which is classified principally to

chapter 7 (Sec. 401 et seq.) of Title 41, Public Contracts. For

complete classification of this Act to the Code, see Short Title

note set out under section 401 of Title 41 and Tables.

The Federal Acquisition Streamlining Act of 1994, referred to in

subsec. (d)(2)(C), is Pub. L. 103-355, Oct. 13, 1994, 108 Stat.

3243. For complete classification of this Act to the Code, see

Short Title of 1994 Amendment note set out under section 251 of

Title 41, Public Contracts, and Tables.

The Small Business Act, referred to in subsec. (d)(2)(D), is Pub.

L. 85-536, July 18, 1958, 72 Stat. 384, as amended, which is

classified generally to chapter 14A (Sec. 631 et seq.) of Title 15,

Commerce and Trade. For complete classification of this Act to the

Code, see Short Title note set out under section 631 of Title 15

and Tables.

The Competition in Contracting Act, referred to in subsec.

(d)(2)(E), probably means the Competition in Contracting Act of

1984, which is title VII of Pub. L. 98-369, div. B, July 18, 1984,

98 Stat. 1175. For complete classification of this Act to the Code,

see Short Title of 1984 Amendments note set out under section 251

of Title 41, Public Contracts, and Tables.

The Brooks Automatic Data Processing Act, referred to in subsec.

(d)(2)(G), is act June 30, 1949, ch. 288, title I, Sec. 111, as

added Oct. 30, 1965, Pub. L. 89-306, 79 Stat. 1127, as amended,

which was classified to section 759 of former Title 40, Public

Buildings, Property, and Works, prior to repeal by Pub. L. 104-106,

div. E, title LI, Sec. 5101, Feb. 10, 1996, 110 Stat. 680.

The date of the enactment of the Wendell H. Ford Aviation

Investment and Reform Act for the 21st Century, referred to in

subsec. (d)(3)(B), is the date of enactment of Pub. L. 106-181,

which was approved Apr. 5, 2000.

-MISC2-

AMENDMENTS

2002 - Subsec. (c)(2)(C). Pub. L. 107-217, Sec. 3(n)(5)(A),

substituted "(as defined in section 3301(a) of title 40)" for "(as

defined in section 13 of the Public Buildings Act of 1959 (40

U.S.C. 612))".

Subsec. (c)(2)(F). Pub. L. 107-217, Sec. 3(n)(5)(B), substituted

"sections 121, 123, and 126 and chapter 5 of title 40" for "title

II of the Federal Property and Administrative Services Act of 1949

(40 U.S.C. 481 et seq.)".

2000 - Subsecs. (d), (e). Pub. L. 106-181 added subsecs. (d) and

(e).

1996 - Subsecs. (b), (c). Pub. L. 104-264 added subsec. (b) and

redesignated former subsec. (b) as (c).

1994 - Subsec. (a). Pub. L. 103-429, Sec. 6(48), in introductory

provisions, struck out "may" after "Administration", in par. (1),

struck out "acquire," before "to the extent" and substituted "may

acquire services or, by condemnation or otherwise," for "services

or", and in pars. (2) and (3), inserted "may" after par.

designation.

Subsec. (b)(2)(A). Pub. L. 103-429, Sec. 6(80), inserted

"notwithstanding section 1341(a)(1) of title 31," before "lease".

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-181 applicable only to fiscal years

beginning after Sept. 30, 1999, see section 3 of Pub. L. 106-181,

set out as a note under section 106 of this title.

EFFECTIVE DATE OF 1996 AMENDMENT

Except as otherwise specifically provided, amendment by Pub. L.

104-264 applicable only to fiscal years beginning after Sept. 30,

1996, and not to be construed as affecting funds made available for

a fiscal year ending before Oct. 1, 1996, see section 3 of Pub. L.

104-264, set out as a note under section 106 of this title.

EFFECTIVE DATE OF 1994 AMENDMENT

Amendment by Pub. L. 103-429 effective July 5, 1994, see section

9 of Pub. L. 103-429, set out as a note under section 321 of this

title.

FAA EVALUATION OF LONG-TERM CAPITAL LEASING

Pub. L. 106-181, title VII, Sec. 704, Apr. 5, 2000, 114 Stat.

157, provided that:

"(a) In General. - The Administrator [of the Federal Aviation

Administration] may carry out a pilot program in fiscal years 2001

through 2003 to test and evaluate the benefits of long-term

contracts for the leasing of aviation equipment and facilities.

"(b) Period of Contracts. - Notwithstanding any other provision

of law, the Administrator may enter into a contract under the

program to lease aviation equipment or facilities for a period of

greater than 5 years.

"(c) Number of Contracts. - The Administrator may not enter into

more that [than] 10 contracts under the program.

"(d) Types of Contracts. - The contracts to be evaluated under

the program may include contracts for telecommunication services

that are provided through the use of a satellite, requirements

related to oceanic and air traffic control, air-to-ground radio

communications, and air traffic control tower construction."

ASSESSMENT OF ACQUISITION MANAGEMENT SYSTEM

Section 251 of Pub. L. 104-264 provided that: "Not later than

April 1, 1999, the Administrator [of the Federal Aviation

Administration] shall employ outside experts to provide an

independent evaluation of the effectiveness of the Administration's

[Federal Aviation Administration] acquisition management system

within 3 months after such date. The Administrator shall transmit a

copy of the evaluation to the Committee on Commerce, Science, and

Transportation of the Senate and the Committee on Transportation

and Infrastructure of the House of Representatives."

Pub. L. 104-205, title III, Sec. 351, Sept. 30, 1996, 110 Stat.

2979, provided that: "Not later than December 31, 1997, the

Administrator of the Federal Aviation Administration shall -

"(a) take such action as may be necessary to provide for an

independent assessment of the acquisition management system of

the Federal Aviation Administration that includes a review of any

efforts of the Administrator in promoting and encouraging the use

of full and open competition as the preferred method of

procurement with respect to any contract that involves an amount

greater than $50,000,000; and

"(b) submit to the Congress a report on the findings of that

independent assessment: Provided, That for purposes of this

section, the term 'full and open competition' has the meaning

provided that term in section 4(6) of the Office of Federal

Procurement Policy Act (41 U.S.C. 403(6))."

ACQUISITION MANAGEMENT SYSTEM FOR FEDERAL AVIATION ADMINISTRATION

Pub. L. 104-50, title III, Sec. 348, Nov. 15, 1995, 109 Stat.

460, required the Administrator of the Federal Aviation

Administration to develop and implement, not later than Jan. 1,

1996, an acquisition management system, exempt from specified

federal procurement and acquisition laws, to provide for more

timely and cost-effective acquisitions of equipment and materials,

prior to repeal by Pub. L. 106-181, title III, Sec. 307(d), Apr. 5,

2000, 114 Stat. 126.

ALTERNATIVE PROCUREMENT AND ACQUISITION PILOT PROGRAM

Pub. L. 103-355, title V, Sec. 5063, Oct. 13, 1994, 108 Stat.

3356, provided that:

"(a) Authority. - The Secretary of Transportation may conduct a

test of alternative and innovative procurement procedures in

carrying out acquisitions for one of the modernization programs

under the Airway Capital Investment Plan prepared pursuant to

section 44501(b) of title 49, United States Code. In conducting

such test, the Secretary shall consult with the Administrator for

Federal Procurement Policy.

"(b) Pilot Program Implementation. - (1) The Secretary of

Transportation should prescribe policies and procedures for the

interaction of the program manager and the end user executive

responsible for the requirement for the equipment acquired. Such

policies and procedures should include provisions for enabling the

end user executive to participate in acceptance testing.

"(2) Not later than 45 days after the date of enactment of this

Act [Oct. 13, 1994], the Secretary of Transportation shall identify

for the pilot program quantitative measures and goals for reducing

acquisition management costs.

"(3) The Secretary of Transportation shall establish for the

pilot program a review process that provides senior acquisition

officials with reports on the minimum necessary data items required

to ensure the appropriate expenditure of funds appropriated for the

program and that -

"(A) contain essential information on program results at

appropriate intervals, including the criteria to be used in

measuring the success of the program; and

"(B) reduce data requirements from the current program review

reporting requirements.

"(c) Special Authorities. - The authority provided by subsection

(a) shall include authority for the Secretary of Transportation -

"(1) to apply any amendment or repeal of a provision of law

made in this Act [see Short Title of 1994 Amendment note set out

under section 251 of Title 41, Public Contracts] to the pilot

program before the effective date of such amendment or repeal;

and

"(2) to apply to a procurement of items other than commercial

items under such program -

"(A) any authority provided in this Act (or in an amendment

made by a provision of this Act) to waive a provision of law in

the case of commercial items, and

"(B) any exception applicable under this Act (or an amendment

made by a provision of this Act) in the case of commercial

items,

before the effective date of such provision (or amendment) to the

extent that the Secretary determines necessary to test the

application of such waiver or exception to procurements of items

other than commercial items.

"(d) Applicability. - Subsection (c) applies with respect to -

"(1) a contract that is awarded or modified after the date

occurring 45 days after the date of the enactment of this Act

[Oct. 13, 1994]; and

"(2) a contract that is awarded before such date and is to be

performed (or may be performed), in whole or in part, after such

date.

"(e) Procedures Authorized. - The test conducted under this

section may include any of the following procedures:

"(1) Restriction of competitions to sources determined capable

in a precompetition screening process, provided that the

screening process affords all interested sources a fair

opportunity to be considered.

"(2) Restriction of competitions to sources of preevaluated

products, provided that the preevaluation process affords all

interested sources a fair opportunity to be considered.

"(3) Alternative notice and publication requirements.

"(4) A process in which -

"(A) the competitive process is initiated by publication in

the Commerce Business Daily, or by dissemination through

FACNET, of a notice that -

"(i) contains a synopsis of the functional and performance

needs of the executive agency conducting the test, and, for

purposes of guidance only, other specifications; and

"(ii) invites any interested source to submit information

or samples showing the suitability of its product for meeting

those needs, together with a price quotation, or, if

appropriate, showing the source's technical capability, past

performance, product supportability, or other qualifications

(including, as appropriate, information regarding rates and

other cost-related factors);

"(B) contracting officials develop a request for proposals

(including appropriate specifications and evaluation criteria)

after reviewing the submissions of interested sources and, if

the officials determine necessary, after consultation with

those sources; and

"(C) a contract is awarded after a streamlined competition

that is limited to all sources that timely provided product

information in response to the notice or, if appropriate, to

those sources determined most capable based on the

qualification-based factors included in an invitation to submit

information pursuant to subparagraph (A).

"(f) Waiver of Procurement Regulations. - (1) In conducting the

test under this section, the Secretary of Transportation, with the

approval of the Administrator for Federal Procurement Policy, may

waive -

"(A) any provision of the Federal Acquisition Regulation that

is not required by statute; and

"(B) any provision of the Federal Acquisition Regulation that

is required by a provision of law described in paragraph (2), the

waiver of which the Administrator determines in writing to be

necessary to test procedures authorized by subsection (e).

"(2) The provisions of law referred to in paragraph (1) are as

follows:

"(A) Subsections (e), (f), and (g) of section 8 of the Small

Business Act (15 U.S.C. 637).

"(B) The following provisions of the Federal Property and

Administrative Services Act of 1949:

"(i) Section 303 (41 U.S.C. 253).

"(ii) Section 303A (41 U.S.C. 253a).

"(iii) Section 303B (41 U.S.C. 253b).

"(iv) Section 303C (41 U.S.C. 253c).

"(C) The following provisions of the Office of Federal

Procurement Policy Act:

"(i) Section 4(6) (41 U.S.C. 403(6)).

"(ii) Section 18 (41 U.S.C. 416).

"(g) Definition. - In this section, the term 'commercial item'

has the meaning provided that term in section 4(12) of the Office

of Federal Procurement Policy Act [41 U.S.C. 403(12)].

"(h) Expiration of Authority. - The authority to conduct the test

under subsection (a) and to award contracts under such test shall

expire 4 years after the date of the enactment of this Act.

Contracts entered into before such authority expires shall remain

in effect, notwithstanding the expiration of the authority to

conduct the test under this section.

"(i) Rule of Construction. - Nothing in this section shall be

construed as authorizing the appropriation or obligation of funds

for the test conducted pursuant to subsection (a)."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 114, 40121 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

49 USC Sec. 40111 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40111. Multiyear procurement contracts for services and

related items

-STATUTE-

(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) operation, maintenance, and support of facilities and

installations.

(2) operation, maintenance, and modification of aircraft,

vehicles, and other highly complex equipment.

(3) specialized training requiring high quality instructor

skills, including training of pilots and aircrew members and

foreign language training.

(4) base services, including ground maintenance, aircraft

refueling, bus transportation, and refuse collection and

disposal.

(b) Required Findings. - The Administrator may make a contract

under this section only if the Administrator 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 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 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 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.

(d) Ending Contracts. - A contract made under this section shall

be ended if amounts are not made available to continue the contract

into a subsequent fiscal year. The cost of ending the contract may

be paid from -

(1) an appropriation originally available for carrying out the

contract;

(2) an appropriation currently available for procuring the type

of service concerned and not otherwise obligated; or

(3) amounts appropriated for payments to end the contract.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1107.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40111(a) 49 App.:1344(e)(1). Aug. 23, 1958, Pub. L.

85-726, Sec. 303(e), 72

Stat. 747; May 21, 1970,

Pub. L. 91-258, Sec.

51(a)(1), 84 Stat. 234; July

12, 1976, Pub. L. 94-353,

Sec. 16, 90 Stat. 882; Oct.

19, 1980, Pub. L. 96-470,

Sec. 112(e), 94 Stat. 2240;

Jan. 12, 1983, Pub. L.

97-449, Sec. 7(b), 96 Stat.

2444; restated Nov. 5, 1990,

Pub. L. 101-508, Sec.

9118(a), 104 Stat. 1388-366.

40111(b) 49 App.:1344(e)(2).

40111(c) 49 App.:1344(e)(3).

40111(d) 49 App.:1344(e)(4).

--------------------------------------------------------------------

In this section, the word "Administrator" in section 303(e) of

the Federal Aviation Act of 1958 (Public Law 85-726, 72 Stat. 747)

is retained on authority of 49:106(g).

In subsection (a), before clause (1), the words "periods of" are

omitted as surplus. In clause (3), the words "training of" are

added for clarity. In clause (4), the word "aircraft" is

substituted for "in-plane" for clarity.

In subsection (c)(2)(A), the words "plant, equipment, and other"

are omitted as surplus.

In subsection (d), the words "canceled or" and "cancellation or"

are omitted as being included in "ended" and "ending",

respectively.

-End-

-CITE-

49 USC Sec. 40112 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40112. Multiyear procurement contracts for property

-STATUTE-

(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.

(b) Required Findings. - The Administrator may make a contract

under this section if the Administrator 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 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 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) a contract under this section shall be used to seek,

retain, and promote the use under that contract of

subcontractors, vendors, or suppliers; and

(B) on accrual of a payment or other benefit accruing on a

contract under this section to a subcontractor, vendor, or

supplier participating in the contract, the payment or benefit

shall be delivered in the most expeditious way practicable; and

(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 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.

(d) Contract Provisions. - (1) A contract under this section may

-

(A) be used for the advance procurement of components, parts,

and material necessary to manufacture equipment to be used in the

national airspace system;

(B) provide that performance under the contract after the first

year is subject to amounts being appropriated; and

(C) contain a negotiated priced option for varying the number

of end items to be procured over the period of the contract.

(2) If feasible and practicable, an advance procurement contract

may be made to achieve economic-lot purchases and more efficient

production rates.

(e) Cancellation Payment and Notice of Cancellation Ceiling. -

(1) If a contract under this section provides that performance is

subject to an appropriation being made, it also may provide for a

cancellation payment to be made to the contractor if the

appropriation is not made.

(2) Before awarding a contract under this section containing a

cancellation ceiling of more than $100,000,000, the Administrator

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 Transportation and

Infrastructure 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.

(f) Ending Contracts. - A contract made under this section shall

be ended if amounts are not made available to continue the contract

into a subsequent fiscal year. The cost of ending the contract may

be paid from -

(1) an appropriation originally available for carrying out the

contract;

(2) an appropriation currently available for procuring the type

of property concerned and not otherwise obligated; or

(3) amounts appropriated for payments to end the contract.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1108; Pub. L.

104-106, div. E, title LVI, Sec. 5606, Feb. 10, 1996, 110 Stat.

700; Pub. L. 104-287, Sec. 5(9), Oct. 11, 1996, 110 Stat. 3389.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40112(a) 49 App.:1344(f)(1) Aug. 23, 1958, Pub. L.

(words before 4th 85-726, Sec. 303(f), 72

comma), (6), (7) Stat. 747; May 21, 1970,

(1st sentence). Pub. L. 91-258, Sec.

51(a)(1), 84 Stat. 234; July

12, 1976, Pub. L. 94-353,

Sec. 16, 90 Stat. 882; Oct.

19, 1980, Pub. L. 96-470,

Sec. 112(e), 94 Stat. 2240;

Jan. 12, 1983, Pub. L.

97-449, Sec. 7(b), 96 Stat.

2444; restated Nov. 5, 1990,

Pub. L. 101-508, Sec.

9118(a), 104 Stat. 1388-367.

40112(b) 49 App.:1344(f)(1)

(words after 4th

comma).

40112(c) 49 App.:1344(f)(2).

40112(d) 49 App.:1344(f)(4)

(1)(A) (words before 3d

comma).

40112(d) 49 App.:1344(f)(7)

(1)(B) (last sentence

words before "and

(if").

40112(d) 49 App.:1344(f)(8).

(1)(C)

40112(d)(2) 49 App.:1344(f)(4)

(words after 3d

comma).

40112(e)(1) 49 App.:1344(f)(7)

(last sentence

words after "of

funds").

40112(e)(2) 49 App.:1344(f)(3).

40112(f) 49 App.:1344(f)(5).

--------------------------------------------------------------------

In this section, the word "Administrator" in section 303(f) of

the Federal Aviation Act of 1958 (Public Law 85-726, 72 Stat. 747)

is retained on authority of 49:106(g).

In subsection (a), the reference in 49 App.:1344(f)(7) to a

contract for the purchase of services is omitted as surplus because

49 App.:1344(f)(1) states that the subsection is concerned only

with contracts for the purchase of property.

In subsection (b)(5), the word "savings" is substituted for "cost

avoidance" for clarity.

In subsection (c), before clause (1), the word "both" is omitted

as surplus. In clause (1)(A), the words "in such a manner as" and

"companies that are" are omitted as surplus. In clause (1)(B), the

words "accruing on" are substituted for "under" for clarity. The

words "subcontractor" and "contract" are substituted for

"subcontract" and "contractor", respectively, to correct errors in

the source provisions being restated.

In subsection (d)(1)(B), the words "after the first year" are

substituted for "during the second and subsequent years of the

contract" to eliminate unnecessary words.

In subsection (e)(2), the words "a clause setting forth" are

omitted as surplus.

In subsection (f), the words "canceled or" and "cancellation or"

are omitted as being included in "ended" and "ending",

respectively.

AMENDMENTS

1996 - Subsec. (a). Pub. L. 104-106 struck out "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" after

"improvement to real property".

Subsec. (e)(2). Pub. L. 104-287 substituted "Transportation and

Infrastructure" for "Public Works and Transportation".

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-106 effective 180 days after Feb. 10,

1996, see section 5701 of Pub. L. 104-106, Feb. 10, 1996, 110 Stat.

702.

-End-

-CITE-

49 USC Sec. 40113 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40113. Administrative

-STATUTE-

(a) General Authority. - The Secretary of Transportation (or the

Under Secretary of Transportation for Security with respect to

security duties and powers designated to be carried out by the

Under 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) may take action

the Secretary, Under Secretary, or Administrator, 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 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) 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 Under Secretary of Transportation for

Security or the Administrator of the Federal Aviation

Administration may indemnify an officer or employee of the

Transportation Security Administration or Federal Aviation

Administration, as the case may be, against a claim or judgment

arising out of an act that the Under Secretary or Administrator, as

the case may be, 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 may provide safety-related training and operational

services to foreign aviation authorities with or without

reimbursement, if the Administrator 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 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 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 shall transmit to Congress a list

of the foreign aviation authorities to which the Administrator

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) Application of Certain Regulations to Alaska. - In amending

title 14, Code of Federal Regulations, in a manner affecting

intrastate aviation in Alaska, the Administrator of the Federal

Aviation Administration shall consider the extent to which Alaska

is not served by transportation modes other than aviation, and

shall establish such regulatory distinctions as the Administrator

considers appropriate.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1110; Pub. L.

103-305, title II, Sec. 202, Aug. 23, 1994, 108 Stat. 1582; Pub. L.

106-181, title I, Sec. 156(a), Apr. 5, 2000, 114 Stat. 89; Pub. L.

107-71, title I, Sec. 140(c), Nov. 19, 2001, 115 Stat. 641.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40113(a) 49 App.:1324(a). Aug. 23, 1958, Pub. L.

85-726, Secs. 204(a),

313(a), 72 Stat. 743, 752.

49 App.:1354(a).

49 Aug. 23, 1958, Pub. L.

App.:1551(b)(1)(E). 85-726, 72 Stat. 731, Sec.

1601(b)(1)(E); added Oct. 4,

1984, Pub. L. 98-443, Sec.

3(e), 98 Stat. 1704.

49 App.:1655(c)(1). Oct. 15, 1966, Pub. L.

89-670, Sec. 6(c)(1), 80

Stat. 938; Jan. 12, 1983,

Pub. L. 97-449, Sec. 7(b),

96 Stat. 2444.

40113(b) 49 App.:1472(h)(1), Aug. 23, 1958, Pub. L.

(3). 85-726, Sec. 902(h)(1), (3),

72 Stat. 785; restated Jan.

3, 1975, Pub. L. 93-633,

Sec. 113(c), 88 Stat. 2162,

2163.

40113(c) 49 App.:1505. Aug. 23, 1958, Pub. L.

85-726, Sec. 1105, 72 Stat.

798; Oct. 15, 1962, Pub. L.

87-810, Sec. 3, 76 Stat. 921.

49 App.:1655(c)(1).

40113(d) 49 App.:1354(e). Aug. 23, 1958, Pub. L.

85-726, 72 Stat. 731, Sec.

313(e); added Dec. 30, 1987,

Pub. L. 100-223, Sec. 205,

101 Stat. 1521.

--------------------------------------------------------------------

In subsections (a), (c), and (d), the word "Administrator" in

sections 313(a) and (e) and 1105 of the Federal Aviation Act of

1958 (Public Law 85-726, 72 Stat. 752, 798) is retained on

authority of 49:106(g).

Subsection (a) is substituted for 49 App.:1324(a) and 1354(a) to

eliminate unnecessary words. The word "standards" is added for

consistency.

In subsection (b), the words "his responsibilities under" and

"safe" are omitted as surplus.

In subsection (c), the words "department, agency, and

instrumentality" are substituted for "agency" and "governmental

agency" for consistency in the revised title and with other titles

of the United States Code. The text of 49 App.:1505 (2d, 3d

sentences) is omitted as superseded by 49 App.:1903(b), restated in

sections 1105, 1110, and 1111 of the revised title. The word

"existing" is omitted as surplus.

In subsection (d), the text of 49 App.:1354(e) (last sentence) is

omitted because of 49:322(a).

AMENDMENTS

2001 - Subsec. (a). Pub. L. 107-71, Sec. 140(c)(1), inserted "the

Under Secretary of Transportation for Security with respect to

security duties and powers designated to be carried out by the

Under Secretary or" before "the Administrator of the Federal

Aviation Administration" and substituted ", Under Secretary, or

Administrator" for "or Administrator".

Subsec. (d). Pub. L. 107-71, Sec. 140(c)(2), inserted "Under

Secretary of Transportation for Security or the" after "The" and

substituted "employee of the Transportation Security Administration

or Federal Aviation Administration, as the case may be," for

"employee of the Administration" and "the Under Secretary or

Administrator, as the case may be, decides" for "the Administrator

decides".

2000 - Subsec. (f). Pub. L. 106-181 added subsec. (f).

1994 - Subsec. (e). Pub. L. 103-305 added subsec. (e).

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-181 applicable only to fiscal years

beginning after Sept. 30, 1999, see section 3 of Pub. L. 106-181,

set out as a note under section 106 of this title.

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of functions, personnel, assets, and liabilities of

the Transportation Security Administration of the Department of

Transportation, including the functions of the Secretary of

Transportation, and of the Under Secretary of Transportation for

Security, relating thereto, to the Secretary of Homeland Security,

and for treatment of related references, see sections 203(2),

551(d), 552(d), and 557 of Title 6, Domestic Security, and the

Department of Homeland Security Reorganization Plan of November 25,

2002, as modified, set out as a note under section 542 of Title 6.

-MISC2-

ADMINISTRATIVE SERVICES FRANCHISE FUND

Pub. L. 104-205, title I, Sept. 30, 1996, 110 Stat. 2957,

provided in part that: "There is hereby established in the Treasury

a fund, to be available without fiscal year limitation, for the

costs of capitalizing and operating such administrative services as

the FAA Administrator determines may be performed more

advantageously as centralized services, including accounting,

international training, payroll, travel, duplicating, multimedia

and information technology services: Provided, That any

inventories, equipment, and other assets pertaining to the services

to be provided by such fund, either on hand or on order, less the

related liabilities or unpaid obligations, and any appropriations

made prior to the current year for the purpose of providing capital

shall be used to capitalize such fund: Provided further, That such

fund shall be paid in advance from funds available to the FAA and

other Federal agencies for which such centralized services are

performed, at rates which will return in full all expenses of

operation, including accrued leave, depreciation of fund plant and

equipment, amortization of Automated Data Processing (ADP) software

and systems (either required or donated), and an amount necessary

to maintain a reasonable operating reserve, as determined by the

FAA Administrator: Provided further, That such fund shall provide

services on a competitive basis: Provided further, That an amount

not to exceed four percent of the total annual income to such fund

may be retained in the fund for fiscal year 1997 and each year

thereafter, to remain available until expended, to be used for the

acquisition of capital equipment and for the improvement and

implementation of FAA financial management, ADP, and support

systems: Provided further, That no later than thirty days after the

end of each fiscal year, amounts in excess of this reserve

limitation shall be transferred to miscellaneous receipts in the

Treasury."

AIRCRAFT PURCHASE LOAN GUARANTEE PROGRAM

Pub. L. 106-69, title III, Sec. 337, Oct. 9, 1999, 113 Stat.

1022, which provided that none of the funds in Pub. L. 106-69 were

to be available for activities under the Aircraft Purchase Loan

Guarantee Program during fiscal year 2000, was from the Department

of Transportation and Related Agencies Appropriations Act, 2000,

and was not repeated in subsequent appropriations acts. Similar

provisions were contained in the following prior appropriation

acts:

Pub. L. 105-277, div. A, Sec. 101(g) [title I], Oct. 21, 1998,

112 Stat. 2681-439, 2681-446.

Pub. L. 105-66, title I, Oct. 27, 1997, 111 Stat. 1431.

Pub. L. 104-205, title I, Sept. 30, 1996, 110 Stat. 2957.

Pub. L. 104-50, title I, Nov. 15, 1995, 109 Stat. 442.

Pub. L. 103-331, title I, Sept. 30, 1994, 108 Stat. 2476.

Pub. L. 103-122, title I, Oct. 27, 1993, 107 Stat. 1205.

Pub. L. 102-388, title I, Oct. 6, 1992, 106 Stat. 1527.

Pub. L. 102-143, title I, Oct. 28, 1991, 105 Stat. 924.

Pub. L. 101-516, title I, Nov. 5, 1990, 104 Stat. 2161.

Pub. L. 101-164, title I, Nov. 21, 1989, 103 Stat. 1076.

Pub. L. 100-457, title I, Sept. 30, 1988, 102 Stat. 2131.

Pub. L. 100-202, Sec. 101(l) [title I], Dec. 22, 1987, 101 Stat.

1329-358, 1329-363.

Pub. L. 99-500, Sec. 101(l) [H.R. 5205, title I], Oct. 18, 1986,

100 Stat. 1783-308, and Pub. L. 99-591, Sec. 101(l) [H.R. 5205,

title I], Oct. 30, 1986, 100 Stat. 3341-308.

Pub. L. 99-190, Sec. 101(e) [title I], Dec. 19, 1985, 99 Stat.

1267, 1273.

Pub. L. 98-473, title I, Sec. 3101(i) [title I], Oct. 12, 1984,

98 Stat. 1944, 1950.

Pub. L. 98-78, title I, Aug. 15, 1983, 97 Stat. 458.

Pub. L. 98-63, title I, July 30, 1983, 97 Stat. 339.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 106, 46102 of this title.

-End-

-CITE-

49 USC Sec. 40114 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40114. Reports and records

-STATUTE-

(a) Written Reports. - (1) Except as provided in this part, 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) 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 as appropriate.

(2) The Secretary (or the Administrator with respect to aviation

safety duties and powers designated to be carried out by the

Administrator) shall have all reports, orders, decisions, and

regulations the Secretary or Administrator, as appropriate, issues

or prescribes published in the form and way best adapted for public

use. A publication of the Secretary or Administrator is competent

evidence of its contents.

(b) Public Records. - Except as provided in subpart II of this

part, copies of tariffs and arrangements filed with the Secretary

under subpart II, and the statistics, tables, and figures contained

in reports made to the Secretary under subpart II, are public

records. The Secretary is the custodian of those records. A public

record, or a copy or extract of it, certified by the Secretary

under the seal of the Department of Transportation is competent

evidence in an investigation by the Secretary and in a judicial

proceeding.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1110.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40114(a)(1) 49 App.:1324(d) Aug. 23, 1958, Pub. L.

(1st, 2d sentences). 85-726, Secs. 204(d),

313(b), 1103, 72 Stat. 743,

753, 797.

49 App.:1354(b)

(1st, 2d sentences).

49 Aug. 23, 1958, Pub. L.

App.:1551(b)(1)(E). 85-726, 72 Stat. 731, Sec.

1601(b)(1)(E); added Oct. 4,

1984, Pub. L. 98-443, Sec.

3(e), 98 Stat. 1704.

49 App.:1655(c)(1). Oct. 15, 1966, Pub. L.

89-670, Sec. 6(c)(1), 80

Stat. 938; Jan. 12, 1983,

Pub. L. 97-449, Sec. 7(b),

96 Stat. 2444.

40114(a)(2) 49 App.:1324(d)

(3d, last

sentences).

49 App.:1354(b)

(3d, last

sentences).

49

App.:1551(b)(1)(E).

49 App.:1655(c)(1).

40114(b) 49 App.:1503.

49

App.:1551(b)(1)(E).

--------------------------------------------------------------------

In subsection (a), the word "Administrator" in section 313(b) of

the Federal Aviation Act of 1958 (Public Law 85-726, 72 Stat. 753)

is retained on authority of 49:106(g).

In subsection (a)(1), the words "otherwise", "requirement in the

premises", and "shall be entered of record" are omitted as surplus.

In subsection (a)(2), the word "rules" is omitted as being

synonymous with "regulations". The word "prescribes" is added for

consistency in the revised title and with other titles of the

United States Code. The words "under this chapter" and "information

and" are omitted as surplus. The words "A publication of the

Secretary or Administrator is competent evidence of its contents"

is substituted for 49 App.:1324(d) (last sentence) to eliminate

unnecessary words and for consistency.

In subsection (b), the words "otherwise", "all contracts,

agreements, understandings, and", "annual or other", "of air

carriers and other persons", and "preserved as" are omitted as

surplus. The last sentence is substituted for 49 App.:1503 (words

after 7th comma) to eliminate unnecessary words and for

consistency.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 106 of this title.

-End-

-CITE-

49 USC Sec. 40115 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40115. Withholding information

-STATUTE-

(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 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 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.

(b) Withholding Information From Congress. - This section does

not authorize information to be withheld from a committee of

Congress authorized to have the information.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1111.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40115 49 App.:1504. Aug. 23, 1958, Pub. L.

85-726, Sec. 1104, 72 Stat.

797; restated Oct. 24, 1978,

Pub. L. 95-504, Sec. 39, 92

Stat. 1743; Feb. 15, 1980,

Pub. L. 96-192, Sec. 19, 94

Stat. 43.

--------------------------------------------------------------------

In subsection (a)(1)(B), the words "the Secretary of

Transportation or State or the United States Postal Service" are

substituted for "the Board, the Secretary of State, or the

Secretary of Transportation" because under 49 App.:1551 the duties

of the Civil Aeronautics Board were transferred to the Secretary of

Transportation and the Postal Service.

In subsection (a)(2), the words "shall order the information

withheld from public disclosure when the appropriate Secretary or

the Postal Service decides that disclosure of the information" are

substituted for "shall be withheld from public disclosure by the

Board, the Secretary of State or the Secretary of Transportation"

for clarity and because of the restatement.

In subsection (b), the words "The Board, the Secretary of State,

or the Secretary of Transportation, as the case may be, shall be

responsible for classified information in accordance with

appropriate law" are omitted as surplus.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 46311 of this title.

-End-

-CITE-

49 USC Sec. 40116 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40116. State taxation

-STATUTE-

(a) Definition. - In this section, "State" includes the District

of Columbia, a territory or possession of the United States, and a

political authority of at least 2 States.

(b) Prohibitions. - Except as provided in subsection (c) of this

section and section 40117 of this title, a State, a political

subdivision of a State, and any person that has purchased or leased

an airport under section 47134 of this title may not levy or

collect a tax, fee, head charge, or other charge on -

(1) an individual traveling in air commerce;

(2) the transportation of an individual traveling in air

commerce;

(3) the sale of air transportation; or

(4) the gross receipts from that air commerce or

transportation.

(c) Aircraft Taking Off or Landing in State. - A State or

political subdivision of a State may levy or collect a tax on or

related to a flight of a commercial aircraft or an activity or

service on the aircraft only if the aircraft takes off or lands in

the State or political subdivision as part of the flight.

(d) Unreasonable Burdens and Discrimination Against Interstate

Commerce. - (1) In this subsection -

(A) "air carrier transportation property" means property (as

defined by the Secretary of Transportation) that an air carrier

providing air transportation owns or uses.

(B) "assessment" means valuation for a property tax levied by a

taxing district.

(C) "assessment jurisdiction" means a geographical area in a

State used in determining the assessed value of property for ad

valorem taxation.

(D) "commercial and industrial property" means property (except

transportation property and land used primarily for agriculture

or timber growing) devoted to a commercial or industrial use and

subject to a property tax levy.

(2)(A) A State, political subdivision of a State, or authority

acting for a State or political subdivision may not do any of the

following acts because those acts unreasonably burden and

discriminate against interstate commerce:

(i) assess air carrier transportation property at a value that

has a higher ratio to the true market value of the property than

the ratio that the assessed value of other commercial and

industrial property of the same type in the same assessment

jurisdiction has to the true market value of the other commercial

and industrial property.

(ii) levy or collect a tax on an assessment that may not be

made under clause (i) of this subparagraph.

(iii) levy or collect an ad valorem property tax on air carrier

transportation property at a tax rate greater than the tax rate

applicable to commercial and industrial property in the same

assessment jurisdiction.

(iv) levy or collect a tax, fee, or charge, first taking effect

after August 23, 1994, exclusively upon any business located at a

commercial service airport or operating as a permittee of such an

airport other than a tax, fee, or charge wholly utilized for

airport or aeronautical purposes.

(B) Subparagraph (A) of this paragraph does not apply to an in

lieu tax completely used for airport and aeronautical purposes.

(e) Other Allowable Taxes and Charges. - Except as provided in

subsection (d) of this section, a State or political subdivision of

a State may levy or collect -

(1) taxes (except those taxes enumerated in subsection (b) of

this section), including property taxes, net income taxes,

franchise taxes, and sales or use taxes on the sale of goods or

services; and

(2) reasonable rental charges, landing fees, and other service

charges from aircraft operators for using airport facilities of

an airport owned or operated by that State or subdivision.

(f) Pay of Air Carrier Employees. - (1) In this subsection -

(A) "pay" means money received by an employee for services.

(B) "State" means a State of the United States, the District of

Columbia, and a territory or possession of the United States.

(C) an employee is deemed to have earned 50 percent of the

employee's pay in a State or political subdivision of a State in

which the scheduled flight time of the employee in the State or

subdivision is more than 50 percent of the total scheduled flight

time of the employee when employed during the calendar year.

(2) The pay of an employee of an air carrier having regularly

assigned duties on aircraft in at least 2 States is subject to the

income tax laws of only the following:

(A) the State or political subdivision of the State that is the

residence of the employee.

(B) the State or political subdivision of the State in which

the employee earns more than 50 percent of the pay received by

the employee from the carrier.

(3) Compensation paid by an air carrier to an employee described

in subsection (a) in connection with such employee's authorized

leave or other authorized absence from regular duties on the

carrier's aircraft in order to perform services on behalf of the

employee's airline union shall be subject to the income tax laws of

only the following:

(A) The State or political subdivision of the State that is the

residence of the employee.

(B) The State or political subdivision of the State in which

the employee's scheduled flight time would have been more than 50

percent of the employee's total scheduled flight time for the

calendar year had the employee been engaged full time in the

performance of regularly assigned duties on the carrier's

aircraft.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1111; Pub. L.

103-305, title I, Sec. 112(e), title II, Sec. 208, Aug. 23, 1994,

108 Stat. 1576, 1588; Pub. L. 104-264, title I, Sec. 149(b), Oct.

9, 1996, 110 Stat. 3226; Pub. L. 104-287, Sec. 5(66), Oct. 11,

1996, 110 Stat. 3395.)

-MISC1-

HISTORICAL AND REVISION NOTES

PUB. L. 103-272

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40116(a) 49 Aug. 23, 1958, Pub. L.

App.:1513(d)(2)(E). 85-726, 72 Stat. 731, Sec.

1113(d); added Sept. 3,

1982, Pub. L. 97-248, Sec.

532(b), 96 Stat. 701.

49 App.:1513(f) Aug. 23, 1958, Pub. L.

(words in 85-726, 72 Stat. 731, Sec.

parentheses). 1113(f); added Nov. 5, 1990,

Pub. L. 101-508, Sec. 9125,

104 Stat. 1388-370.

40116(b) 49 App.:1513(a). Aug. 23, 1958, Pub. L.

85-726, 72 Stat. 731, Sec.

1113(a); added June 18,

1973, Pub. L. 93-44, Sec.

7(a), 87 Stat. 90; Nov. 5,

1990, Pub. L. 101-508, Sec.

9110(1), 104 Stat. 1388-357.

40116(c) 49 App.:1513(f)

(less words in

parentheses).

40116(d) 49 App.:1513(d)(1),

(2)(A)-(D), (3).

40116(e) 49 App.:1513(b). Aug. 23, 1958, Pub. L.

85-726, 72 Stat. 731, Sec.

1113(b); added June 18,

1973, Pub. L. 93-44, Sec.

7(a), 87 Stat. 90; Sept. 3,

1982, Pub. L. 97-248, Sec.

532(a), 96 Stat. 701.

40116(f) 49 App.:1512(c). Aug. 23, 1958, Pub. L.

(1)(A), (B) 85-726, 72 Stat. 731, Sec.

1112; added Dec. 23, 1970,

Pub. L. 91-569, Sec. 4(a),

84 Stat. 1502; restated Feb.

18, 1980, Pub. L. 96-193,

Sec. 402, 94 Stat. 57.

40116(f) 49 App.:1512(b).

(1)(C)

40116(f)(2) 49 App.:1512(a).

--------------------------------------------------------------------

Subsection (a) is made applicable to subsections (b) and (e) of

this section to avoid having to repeat the term being defined. In

subsection (a), the words "Commonwealth of Puerto Rico, the Virgin

Islands, Guam" are omitted as surplus because of the definition of

"territory or possession of the United States" in section 40102(a)

of the revised title. The word "authority" is substituted for

"agencies" for consistency in the revised title and with other

titles of the United States Code.

In subsection (b), before clause (1), reference to 49

App.:1513(f), restated as subsection (c) of this section, is added

for clarity. The words "directly or indirectly" are omitted as

surplus. The text of 49 App.:1513(a) (words after "subsection (e)

and") is omitted as surplus.

In subsections (d)(2)(A), before clause (i), and (f)(1)(C) and

(2), the word "political" is added for consistency in the revised

title and with other titles of the Code.

In subsection (f)(1)(A), the word "pay" is substituted for

"compensation" for consistency in the revised title and with

chapter 55 of title 5, United States Code. The words "rendered by

the employee in the performance of his duties and shall include

wages and salary" are omitted as surplus.

In subsection (f)(1)(B), the words "means a State of the United

States" are substituted for "also means" for clarity.

In subsection (f)(1)(C), the words "of a State" are added for

clarity.

In subsection (f)(2), before clause (A), the words "as such an

employee" are omitted as surplus.

PUB. L. 104-287

This amends 49:40116(d)(2)(A)(iv) to conform to the style of

title 49 and to set out the effective date for this clause.

AMENDMENTS

1996 - Subsec. (b). Pub. L. 104-264, in introductory provisions,

substituted "a State, a" for "a State or" and inserted ", and any

person that has purchased or leased an airport under section 47134

of this title" after "of a State".

Subsec. (d)(2)(A)(iv). Pub. L. 104-287, which directed

substitution of "August 23, 1994" for "the date of enactment of

this clause", was executed by making the substitution for "the date

of the enactment of this clause" to reflect the probable intent of

Congress.

Pub. L. 104-287 substituted "levy" for "Levy".

1994 - Subsec. (d)(2)(A)(iv). Pub. L. 103-305, Sec. 112(e), added

cl. (iv).

Subsec. (f)(3). Pub. L. 103-305, Sec. 208, added par. (3).

EFFECTIVE DATE OF 1996 AMENDMENT

Except as otherwise specifically provided, amendment by Pub. L.

104-264 applicable only to fiscal years beginning after Sept. 30,

1996, and not to be construed as affecting funds made available for

a fiscal year ending before Oct. 1, 1996, see section 3 of Pub. L.

104-264, set out as a note under section 106 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 46301, 46316, 47134 of

this title.

-End-

-CITE-

49 USC Sec. 40117 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40117. Passenger facility fees

-STATUTE-

(a) Definitions. - In this section, the following definitions

apply:

(1) Airport, commercial service airport, and public agency. -

The terms "airport", "commercial service airport", and "public

agency" have the meaning those terms have under section 47102.

(2) Eligible agency. - The term "eligible agency" means a

public agency that controls a commercial service airport.

(3) Eligible airport-related project. - The term "eligible

airport-related project" means any of the following projects:

(A) A project for airport development or airport planning

under subchapter I of chapter 471.

(B) A project for terminal development described in section

47110(d).

(C) for (!1) costs of terminal development referred to in

subparagraph (B) incurred after August 1, 1986, at an airport

that did not have more than .25 percent of the total annual

passenger boardings in the United States in the most recent

calendar year for which data is available and at which total

passenger boardings declined by at least 16 percent between

calendar year 1989 and calendar year 1997; (!2)

(D) A project for airport noise capability planning under

section 47505.

(E) A project to carry out noise compatibility measures

eligible for assistance under section 47504, whether or not a

program for those measures has been approved under section

47504.

(F) A project for constructing gates and related areas at

which passengers board or exit aircraft. In the case of a

project required to enable additional air service by an air

carrier with less than 50 percent of the annual passenger

boardings at an airport, the project for constructing gates and

related areas may include structural foundations and floor

systems, exterior building walls and load-bearing interior

columns or walls, windows, door and roof systems, building

utilities (including heating, air conditioning, ventilation,

plumbing, and electrical service), and aircraft fueling

facilities adjacent to the gate.

(4) Passenger facility fee. - The term "passenger facility fee"

means a fee imposed under this section.

(5) Passenger facility revenue. - The term "passenger facility

revenue" means revenue derived from a passenger facility fee.

(b) General Authority. - (1) The Secretary of Transportation 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.

(2) A State, political subdivision of a State, or authority of a

State or political subdivision that is not the eligible agency may

not regulate or prohibit the imposition or collection of a

passenger facility fee or the use of the passenger facility

revenue.

(3) A passenger facility fee may be imposed on a passenger of an

air carrier or foreign air carrier originating or connecting at the

commercial service airport that the agency controls.

(4) In lieu of authorizing a fee under paragraph (1), the

Secretary may authorize under this section an eligible agency to

impose a passenger facility fee of $4.00 or $4.50 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, if the Secretary

finds -

(A) in the case of an airport that has more than .25 percent of

the total number of annual boardings in the United States, that

the project will make a significant contribution to improving air

safety and security, increasing competition among air carriers,

reducing current or anticipated congestion, or reducing the

impact of aviation noise on people living near the airport; and

(B) that the project cannot be paid for from funds reasonably

expected to be available for the programs referred to in section

48103.

(c) Applications. - (1) An eligible agency must submit to the

Secretary an application for authority to impose a passenger

facility fee. The application shall contain information and be in

the form that the Secretary 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 shall prescribe regulations that define

reasonable notice and contain at least the following requirements:

(A) The agency must provide written notice of individual

projects being considered for financing by a passenger facility

fee and the date and location of a meeting to present the

projects to air carriers and foreign air carriers operating at

the airport.

(B) Not later than 30 days after written notice is provided

under subparagraph (A) of this paragraph, each air carrier and

foreign air carrier operating at the airport must provide to the

agency written notice of receipt of the notice. Failure of a

carrier to provide the notice may be deemed certification of

agreement with the project by the carrier under subparagraph (D)

of this paragraph.

(C) Not later than 45 days after written notice is provided

under subparagraph (A) of this paragraph, the agency must conduct

a meeting to provide air carriers and foreign air carriers with

descriptions of projects and justifications and a detailed

financial plan for projects.

(D) Not later than 30 days after the meeting, each air carrier

and foreign air carrier must provide to the agency certification

of agreement or disagreement with projects (or total plan for the

projects). Failure to provide the certification is deemed

certification of agreement with the project by the carrier. A

certification of disagreement is void if it does not contain the

reasons for the disagreement.

(3) After receiving an application, the Secretary shall provide

notice and an opportunity to air carriers, foreign air carriers,

and other interested persons to comment on the application. The

Secretary shall make a final decision on the application not later

than 120 days after receiving it.

(d) Limitations on Approving Applications. - The Secretary 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 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;

(3) the application includes adequate justification for each of

the specific projects; and

(4) in the case of an application to impose a fee of more than

$3.00 for an eligible surface transportation or terminal project,

the agency has made adequate provision for financing the airside

needs of the airport, including runways, taxiways, aprons, and

aircraft gates.

(e) Limitations on Imposing Fees. - (1) An eligible agency may

impose a passenger facility fee only -

(A) if the Secretary approves an application that the agency

has submitted under subsection (c) of this section; and

(B) subject to terms the Secretary 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) 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.(!3)

(D) on flights, including flight segments, between 2 or more

points in Hawaii; and

(E) in Alaska aboard an aircraft having a seating capacity of

less than 60 passengers.

(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.

(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.

(g) Treatment of Revenue. - (1) Passenger facility revenue is not

airport revenue for purposes of establishing a price under a

contract between an eligible agency and an air carrier or foreign

air carrier.

(2) An eligible agency may not include in its price base the part

of the capital costs of a project paid for by using passenger

facility revenue to establish a price under a contract between the

agency and an air carrier or foreign air carrier.

(3) For a project for terminal development, gates and related

areas, or a facility occupied or used by at least one air carrier

or foreign air carrier on an exclusive or preferential basis, a

price payable by an air carrier or foreign air carrier using the

facilities must at least equal the price paid by an air carrier or

foreign air carrier using a similar facility at the airport that

was not financed with passenger facility revenue.

(4) Passenger facility revenues that are held by an air carrier

or an agent of the carrier after collection of a passenger facility

fee constitute a trust fund that is held by the air carrier or

agent for the beneficial interest of the eligible agency imposing

the fee. Such carrier or agent holds neither legal nor equitable

interest in the passenger facility revenues except for any handling

fee or retention of interest collected on unremitted proceeds as

may be allowed by the Secretary.

(h) Compliance. - (1) As necessary to ensure compliance with this

section, the Secretary 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 periodically shall audit and review the use by

an eligible agency of passenger facility revenue. After review and

a public hearing, the Secretary may end any part of the authority

of the agency to impose a passenger facility fee to the extent the

Secretary decides that the revenue is not being used as provided in

this section.

(3) The Secretary 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 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 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;

(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 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; and

(3) may permit an eligible agency to request that collection of

a passenger facility fee be waived for -

(A) passengers enplaned by any class of air carrier or

foreign air carrier if the number of passengers enplaned by the

carriers in the class constitutes not more than one percent of

the total number of passengers enplaned annually at the airport

at which the fee is imposed; or

(B) passengers enplaned on a flight to an airport -

(i) that has fewer than 2,500 passenger boardings each year

and receives scheduled passenger service; or

(ii) in a community which has a population of less than

10,000 and is not connected by a land highway or vehicular

way to the land-connected National Highway System within a

State.

(j) Limitation on Certain Actions. - A State, political

subdivision of a State, or authority of a State or political

subdivision that is not the eligible agency may not tax, regulate,

or prohibit or otherwise attempt to control in any manner, the

imposition or collection of a passenger facility fee or the use of

the revenue from the passenger facility fee.

(k) Competition Plans. -

(1) In general. - Beginning in fiscal year 2001, no eligible

agency may impose a passenger facility fee under this section

with respect to a covered airport (as such term is defined in

section 47106(f)) unless the agency has submitted to the

Secretary a written competition plan in accordance with such

section. This subsection does not apply to passenger facility

fees in effect before the date of the enactment of this

subsection.

(2) Secretary shall ensure implementation and compliance. - The

Secretary shall review any plan submitted under paragraph (1) to

ensure that it meets the requirements of this section, and shall

review its implementation from time-to-time to ensure that each

covered airport successfully implements its plan.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1113; Pub. L.

103-305, title II, Secs. 203, 204(a)(1), (b), Aug. 23, 1994, 108

Stat. 1582, 1583; Pub. L. 104-264, title I, Sec. 142(b)(2), title

XII, Sec. 1202, Oct. 9, 1996, 110 Stat. 3221, 3280; Pub. L.

104-287, Sec. 5(67), Oct. 11, 1996, 110 Stat. 3395; Pub. L.

106-181, title I, Secs. 105(a), (b), 135(a), (b), 151, 152(a),

155(c), Apr. 5, 2000, 114 Stat. 71, 83, 86-88.)

-MISC1-

HISTORICAL AND REVISION NOTES

PUB. L. 103-272

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40117(a)(1) 49 App.:1513(e) Aug. 23, 1958, Pub. L.

(15)(A), (B), (D). 85-726, 72 Stat. 731, Sec.

1113(e)(1)-(3), (5)-(15);

added Nov. 5, 1990, Pub. L.

101-508, Sec. 9110(2), 104

Stat. 1388-357.

40117(a)(2) (no source).

40117(a)(3) 49 App.:1513(e)

(15)(C).

40117(a)( (no source).

4), (5)

40117(b)(1) 49 App.:1513(e)(1).

40117(b)(2) 49 App.:1513(e)(8)

(1st sentence).

40117(b)(3) 49 App.:1513(e)(6)

(1st sentence).

40117(c)( 49 App.:1513(e)

1), (2) (11)(A)-(C).

40117(c)(3) 49 App.:1513(e)

(11)(D), (E) (last

sentence).

40117(d) 49 App.:1513(e)(2),

(5).

40117(e) 49 App.:1513(e)

(1)(A) (11)(E) (1st

sentence).

40117(e) 49 App.:1513(e)(13).

(1)(B)

40117(e) 49 App.:1513(e)(6)

(2)(A) (last sentence).

40117(e) 49 App.:1513(e)(3).

(2)(B)

40117(e) 49 App.:1513(e)(4). Aug. 23, 1958, Pub. L.

(2)(C) 85-726, 72 Stat. 731, Sec.

1113(e)(4); added Nov. 5,

1990, Pub. L. 101-508, Sec.

9110(2), 104 Stat. 1388-357;

Oct. 31, 1992, Pub. L.

102-581, Sec. 105, 106 Stat.

4877.

40117(f)(1) 49 App.:1513(e)(8)

(last sentence).

40117(f)( 49 App.:1513(e)(9).

2), (3)

40117(g) 49 App.:1513(e)(7).

40117(h) 49 App.:1513(e)(12).

40117(i) 49

App.:1513(e)(10),

(14).

--------------------------------------------------------------------

In subsection (a), before clause (1), the text of 49

App.:1513(e)(15)(A) is omitted for clarity and because the terms

"air carrier" and "foreign air carrier" are used the first time

they appear in each subsection. The text of 49 App.:1513(e)(15)(D)

is omitted because the complete name of the Secretary of

Transportation is used the first time the term appears in this

section. Clauses (2), (4), and (5) are added to avoid repeating the

source provisions throughout this section. In clause (3)(D), the

words "without regard to" are omitted as surplus.

In subsection (b)(1), the words "bonds and other" are omitted as

surplus.

In subsection (b)(2), the word "limit" is omitted as being

included in "regulate".

In subsection (d), before clause (1), the text of 49

App.:1513(e)(5) is omitted as executed. The words "approve an

application that an eligible agency has submitted under subsection

(c) of this section" are substituted for "grant a public agency

which controls a commercial service airport authority to impose a

fee under this subsection" for clarity.

In subsection (e)(1)(B), the words "and conditions" are omitted

as being included in "terms".

Subsection (e)(2)(A) is substituted for 49 App.:1513(e)(6) (last

sentence) to eliminate unnecessary words.

In subsection (e)(2)(B), the words "a public agency which

controls any other airport", "If a passenger of an air carrier is

being provided air service", and "with respect to such air service"

are omitted as surplus.

In subsection (f)(3), the words "financed with" are substituted

for "carried out through the use of" for consistency in this

section and to eliminate unnecessary words.

In subsection (g), the word "price" is substituted for "rate,

fee, or charge" and "rates, fees, and charges" to eliminate

unnecessary words.

In subsection (g)(2), the words "Except as provided by

subparagraph (C)" and "by means of depreciation, amortization, or

any other method" are omitted as surplus.

In subsection (h)(1), the word "agent" is substituted for

"agency" to correct an error in the source provisions.

In subsection (i), before clause (1), the words "Not later than

May 4, 1991" are omitted as obsolete.

PUB. L. 104-287

This repeals 49:40117(e)(2)(C) to eliminate an executed provision

and makes conforming amendments.

-REFTEXT-

REFERENCES IN TEXT

The date of the enactment of this subsection, referred to in

subsec. (k)(1), is the date of enactment of Pub. L. 106-181, which

was approved Apr. 5, 2000.

-MISC2-

AMENDMENTS

2000 - Subsec. (a). Pub. L. 106-181, Sec. 151, amended heading

and text of subsec. (a) generally. Prior to amendment, text read as

follows: "In this section -

"(1) 'airport', 'commercial service airport', and 'public

agency' have the same meanings given those terms in section 47102

of this title.

"(2) 'eligible agency' means a public agency that controls a

commercial service airport.

"(3)'eligible airport-related project' means a project -

"(A) for airport development or airport planning under

subchapter I of chapter 471 of this title;

"(B) for terminal development described in section 47110(d)

of this title;

"(C) for airport noise capability planning under section

47505 of this title;

"(D) to carry out noise compatibility measures eligible for

assistance under section 47504 of this title, whether or not a

program for those measures has been approved under section

47504; and

"(E) for constructing gates and related areas at which

passengers board or exit aircraft.

"(4) 'passenger facility fee' means a fee imposed under this

section.

"(5) 'passenger facility revenue' means revenue derived from a

passenger facility fee."

Subsec. (a)(3)(C) to (F). Pub. L. 106-181, Sec. 152(a), added

subpar. (C) and redesignated former subpars. (C) to (E) as (D) to

(F), respectively.

Subsec. (b)(4). Pub. L. 106-181, Sec. 105(a), added par. (4).

Subsec. (d)(4). Pub. L. 106-181, Sec. 105(b), added par. (4).

Subsec. (e)(2)(D), (E). Pub. L. 106-181, Sec. 135(a), added

subpars. (D) and (E).

Subsec. (i)(3). Pub. L. 106-181, Sec. 135(b)(1)-(3), added par.

(3).

Subsec. (j). Pub. L. 106-181, Sec. 135(b)(4), added subsec. (j).

Subsec. (k). Pub. L. 106-181, Sec. 155(c), added subsec. (k).

1996 - Subsec. (a)(3)(D) to (F). Pub. L. 104-264, Sec. 142(b)(2),

inserted "and" at end of subpar. (D), substituted a period for ";

and" at end of subpar. (E), and struck out subpar. (F) which read

as follows: "in addition to projects eligible under subparagraph

(A), the construction, reconstruction, repair, or improvement of

areas of an airport used for the operation of aircraft or actions

to mitigate the environmental effects of such construction,

reconstruction, repair, or improvement when the construction,

reconstruction, repair, improvement, or action is necessary for

compliance with the responsibilities of the operator or owner of

the airport under the Americans with Disabilities Act of 1990, the

Clean Air Act, or the Federal Water Pollution Control Act with

respect to the airport."

Subsec. (e)(2)(B) to (D). Pub. L. 104-287 inserted "and" at end

of subpar. (B), redesignated subpar. (D) as (C), and struck out

former subpar. (C) which read as follows: "for a project the

Secretary 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 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".

Subsec. (g)(4). Pub. L. 104-264, Sec. 1202, added par. (4).

1994 - Subsec. (a)(3)(F). Pub. L. 103-305, Sec. 203, added

subpar. (F).

Subsec. (d)(3). Pub. L. 103-305, Sec. 204(b), added par. (3).

Subsec. (e)(2)(D). Pub. L. 103-305, Sec. 204(a)(1), added subpar.

(D).

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-181 applicable only to fiscal years

beginning after Sept. 30, 1999, see section 3 of Pub. L. 106-181,

set out as a note under section 106 of this title.

EFFECTIVE DATE OF 1996 AMENDMENT

Except as otherwise specifically provided, amendment by Pub. L.

104-264 applicable only to fiscal years beginning after Sept. 30,

1996, and not to be construed as affecting funds made available for

a fiscal year ending before Oct. 1, 1996, see section 3 of Pub. L.

104-264, set out as a note under section 106 of this title.

COMPETITION PLANS

Pub. L. 106-181, title I, Sec. 155(a), Apr. 5, 2000, 114 Stat.

88, provided that: "The Congress makes the following findings:

"(1) Major airports must be available on a reasonable basis to

all air carriers wishing to serve those airports.

"(2) 15 large hub airports today are each dominated by one air

carrier, with each such carrier controlling more than 50 percent

of the traffic at the hub.

"(3) The General Accounting Office has found that such levels

of concentration lead to higher air fares.

"(4) The United States Government must take every step

necessary to reduce those levels of concentration.

"(5) Consistent with air safety, spending at these airports

must be directed at providing opportunities for carriers wishing

to serve such facilities on a commercially viable basis."

LIMITATION ON STATUTORY CONSTRUCTION OF SUBSECTION (E)(2)(D)

Section 204(a)(2) of Pub. L. 103-305 provided that: "The

amendment made by paragraph (1) [amending this section] shall not

be construed as requiring any person to refund any fee paid before

the date of the enactment of this Act [Aug. 23, 1994]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 40116, 46301, 46316,

47102, 47106, 47110, 47111, 47114, 47134, 47524, 47526, 49108 of

this title.

-FOOTNOTE-

(!1) So in original. Probably should be capitalized.

(!2) So in original. The semicolon probably should be a period.

(!3) So in original. The period probably should be a semicolon.

-End-

-CITE-

49 USC Sec. 40118 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40118. Government-financed air transportation

-STATUTE-

(a) Transportation by Air Carriers Holding Certificates. - A

department, agency, or instrumentality of the United States

Government shall take necessary steps to ensure that the

transportation of passengers and property by air is provided by an

air carrier holding a certificate under section 41102 of this title

if -

(1) the department, agency, or instrumentality -

(A) obtains the transportation for itself or in carrying out

an arrangement under which payment is made by the Government or

payment is made from amounts provided for the use of the

Government; or

(B) provides the transportation to or for a foreign country

or international or other organization without reimbursement;

(2) the transportation is authorized by the certificate or by

regulation or exemption of the Secretary of Transportation; and

(3) the air carrier is -

(A) available, if the transportation is between a place in

the United States and a place outside the United States; or

(B) reasonably available, if the transportation is between 2

places outside the United States.

(b) Transportation by Foreign Air Carriers. - This section does

not preclude the transportation of passengers and property by a

foreign air carrier if the transportation is provided under a

bilateral or multilateral air transportation agreement to which the

Government and the government of a foreign country are parties if

the agreement -

(1) is consistent with the goals for international aviation

policy of section 40101(e) of this title; and

(2) provides for the exchange of rights or benefits of similar

magnitude.

(c) Proof. - The Administrator of General Services shall

prescribe regulations under which agencies may allow the

expenditure of an appropriation for transportation in violation of

this section only when satisfactory proof is presented showing the

necessity for the transportation.

(d) Certain Transportation by Air Outside the United States. -

Notwithstanding subsections (a) and (c) of this section, any amount

appropriated to the Secretary of State or the Administrator of the

Agency for International Development may be used to pay for the

transportation of an officer or employee of the Department of State

or one of those agencies, a dependent of the officer or employee,

and accompanying baggage, by a foreign air carrier when the

transportation is between 2 places outside the United States.

(e) Relationship to Other Laws. - This section does not affect

the application of the antidiscrimination provisions of this part.

(f) Prohibition of Certification or Contract Clause. - (1) No

certification by a contractor, and no contract clause, may be

required in the case of a contract for the transportation of

commercial items in order to implement a requirement in this

section.

(2) In paragraph (1), the term "commercial item" has the meaning

given such term in section 4(12) of the Office of Federal

Procurement Policy Act (41 U.S.C. 403(12)).

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1116; Pub. L.

103-355, title VIII, Sec. 8301(h), Oct. 13, 1994, 108 Stat. 3398;

Pub. L. 104-287, Sec. 5(68), Oct. 11, 1996, 110 Stat. 3395; Pub. L.

104-316, title I, Sec. 127(d), Oct. 19, 1996, 110 Stat. 3840; Pub.

L. 105-277, div. G, subdiv. A, title XII, Sec. 1225(h), title XIII,

Sec. 1335(p), title XIV, Sec. 1422(b)(6), Oct. 21, 1998, 112 Stat.

2681-775, 2681-789, 2681-793.)

-MISC1-

HISTORICAL AND REVISION NOTES

PUB. L. 103-272

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40118(a) 49 App.:1517(a), Aug. 23, 1958, Pub. L.

(b). 85-726, 72 Stat. 731, Sec.

1117; added Jan. 3, 1975,

Pub. L. 93-623, Sec. 5(a),

88 Stat. 2104; restated Feb.

15, 1980, Pub. L. 96-192,

Sec. 21, 94 Stat. 43.

49 Aug. 23, 1958, Pub. L.

App.:1551(b)(1)(E). 85-726, 72 Stat. 731, Sec.

1601(b)(1)(E); added Oct. 4,

1984, Pub. L. 98-443, Sec.

3(e), 98 Stat. 1704.

40118(b) 49 App.:1517(c).

40118(c) 49 App.:1517(d)

(1st sentence).

40118(d) 49 App.:1518. Oct. 7, 1978, Pub. L.

95-426, Sec. 706, 92 Stat.

992.

40118(e) 49 App.:1517(d)

(last sentence).

--------------------------------------------------------------------

In this section, the word "passengers" is substituted for

"persons" for consistency in the revised title. The words "(and

their personal effects)" are omitted as being included in

"property".

In subsection (a), before clause (1), the words "Except as

provided in subsection (c) of this section" are omitted as surplus.

The words "department, agency, or instrumentality" are substituted

for "agency" for consistency in the revised title and with other

titles of the United States Code. The words "or agencies" are

omitted because of 1:1. In clause (1), before subclause (A), the

words "executive" and "other" are omitted as surplus. In subclause

(A), the words "procure, contract for, or otherwise" are omitted as

surplus. The words "for itself or in carrying out an arrangement

under which payment is made by the Government or payment is made

from amounts provided for the use of the Government" are

substituted for "in furtherance of the purposes or pursuant to the

terms of any contract, agreement, or other special arrangement made

or entered into under which payment is made by the United States or

payment is made from funds appropriated, owned, controlled,

granted, or conditionally granted or utilized by or otherwise" for

clarity and to eliminate unnecessary words. In subclause (B), the

word "country" is substituted for "nation" for consistency in the

revised title and with other titles of the Code. The words

"international or other organization" are substituted for

"international agency, or other organization, of whatever

nationality" to eliminate unnecessary words. The words "provisions

for" are omitted as surplus.

In subsection (b), before clause (1), the words "government of a

foreign country" are substituted for "foreign government" for

consistency in the revised title and with other titles of the Code.

The words "or governments" are omitted because of 1:1.

In subsection (c), the words "for payment for personnel or cargo

transportation" are omitted as surplus.

In subsection (d), the words "the limitations established by" are

omitted as surplus. The words "after October 7, 1978" are omitted

as executed. The words "Secretary of State" are substituted for

"Department of State" because of 22:2651. The words "Director of

the United States Information Agency" are substituted for

"International Communication Agency" in section 706 of the Act of

October 7, 1978 (Public Law 95-426, 92 Stat. 992), because of

section 2 of Reorganization Plan No. 2 of 1977 (eff. July 1, 1978,

91 Stat. 1636) and section 303(b) of the United States Information

Agency Authorization Act, Fiscals Year 1982 and 1983 (Public Law

97-241, 96 Stat. 291). The words "Director of the United States

International Development Cooperation Agency" are substituted for

"Agency for International Development (or any successor agency)" in

section 706 because of section 6(a)(3) of Reorganization Plan No. 2

of 1979 (eff. October 1, 1979, 93 Stat. 1379). The words "a foreign

air carrier" are substituted for "air carriers which do not hold

certificates under section 1371 of this Appendix" for clarity. See

H. Conf. Rept. No. 95-1535, 95th Cong., 2d Sess., p. 45 (1978).

In subsection (e), the word "affect" is substituted for "prevent"

for clarity. The words "to such traffic" are omitted as surplus.

PUB. L. 104-287, SEC. 5(68)(A)

This amends the catchline for 49:40118(d) to make a clarifying

amendment.

PUB. L. 104-287, SEC. 5(68)(B)

This amends 49:40118(f)(1) to make a clarifying amendment.

AMENDMENTS

1998 - Subsec. (d). Pub. L. 105-277, Sec. 1422(b)(6), substituted

"or the Administrator of the Agency for International Development"

for "the Director of the United States International Development

Cooperation Agency".

Pub. L. 105-277, Sec. 1335(p), struck out ", the Director of the

United States Information Agency," after "Secretary of State".

Pub. L. 105-277, Sec. 1225(h), struck out ", or the Director of

the Arms Control and Disarmament Agency" before "may be used to

pay".

1996 - Subsec. (c). Pub. L. 104-316 substituted "Administrator of

General Services shall prescribe regulations under which agencies

may" for "Comptroller General shall".

Subsec. (d). Pub. L. 104-287, Sec. 5(68)(A), substituted "Certain

Transportation by Air Outside the United States" for

"Transportation by Foreign Air Carriers" in heading.

Subsec. (f). Pub. L. 104-287, Sec. 5(68)(B), inserted heading.

1994 - Subsec. (f). Pub. L. 103-355 added subsec. (f).

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by section 1225(h) of Pub. L. 105-277 effective on

earlier of Apr. 1, 1999, or date of abolition of the United States

Arms Control and Disarmament Agency pursuant to reorganization plan

described in section 6601 of Title 22, Foreign Relations and

Intercourse, see section 1201 of Pub. L. 105-277, set out as an

Effective Date note under section 6511 of Title 22.

Amendment by section 1335(p) of Pub. L. 105-277 effective on

earlier of Oct. 1, 1999, or date of abolition of the United States

Information Agency pursuant to reorganization plan described in

section 6601 of Title 22, Foreign Relations and Intercourse, see

section 1301 of Pub. L. 105-277, set out as an Effective Date note

under section 6531 of Title 22.

Amendment by section 1422(b)(6) of Pub. L. 105-277 effective on

earlier of Apr. 1, 1999, or date of abolition of the United States

International Development Cooperation Agency pursuant to

reorganization plan described in section 6601 of Title 22, Foreign

Relations and Intercourse, see section 1401 of Pub. L. 105-277, set

out as an Effective Date note under section 6561 of Title 22.

EFFECTIVE DATE OF 1994 AMENDMENT

For effective date and applicability of amendment by Pub. L.

103-355, see section 10001 of Pub. L. 103-355, set out as a note

under section 251 of Title 41, Public Contracts.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 22 section 2514.

-End-

-CITE-

49 USC Sec. 40119 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40119. Security and research and development activities

-STATUTE-

(a) General Requirements. - The Under Secretary of Transportation

for Security and the Administrator of the Federal Aviation

Administration each 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, aircraft piracy, and terrorism and to ensure security.

(b) Disclosure. - (1) Notwithstanding section 552 of title 5 and

the establishment of a Department of Homeland Security, the

Secretary of Transportation shall prescribe regulations prohibiting

disclosure of information obtained or developed in ensuring

security under this title if the Secretary of Transportation

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 transportation safety.

(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 Under Secretary may not transfer a

duty or power under this section to another department, agency, or

instrumentality of the United States Government.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1117; Pub. L.

107-71, title I, Sec. 101(e), Nov. 19, 2001, 115 Stat. 603; Pub. L.

107-296, title XVI, Sec. 1601(a), Nov. 25, 2002, 116 Stat. 2312.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40119(a) 49 App.:1357(d)(1). Aug. 23, 1958, Pub. L.

85-726, 72 Stat. 731, Sec.

316(d)(1), (e)(1); added

Aug. 5, 1974, Pub. L.

93-366, Sec. 202, 88 Stat.

417.

40119(b) 49 App.:1357(d)(2). Aug. 23, 1958, Pub. L.

85-726, 72 Stat. 731, Sec.

316(d)(2); added Aug. 5,

1974, Pub. L. 93-366, Sec.

202, 88 Stat. 417; Nov. 5,

1990, Pub. L. 101-508, Sec.

9121, 104 Stat. 1388-370.

40119(c) 49 App.:1357(e)(1).

--------------------------------------------------------------------

In this section, the word "Administrator" in section 316(d) and

(e) of the Federal Aviation Act of 1958 (Public Law 85-726, 72

Stat. 731) is retained on authority of 49:106(g).

In subsection (a), the words "as he may deem" and "aboard

aircraft in air transportation or intrastate air transportation"

are omitted as surplus.

In subsection (b)(1), before clause (A), the words "relating to

freedom of information", "as he may deem necessary", and "in the

conduct of research and development activities" are omitted as

surplus. In clause (A), the words "(including, but not limited to,

information contained in any personnel, medical, or similar file)"

are omitted as surplus. In clause (B), the words "obtained from any

person" are omitted as surplus. In clause (C), the word "traveling"

is omitted as surplus.

In subsection (b)(2), the word "duly" is omitted as surplus. The

words "to have the information" are added for clarity.

AMENDMENTS

2002 - Subsec. (a). Pub. L. 107-296, Sec. 1601(a)(1), inserted

"and the Administrator of the Federal Aviation Administration each"

after "for Security" and substituted "criminal violence, aircraft

piracy, and terrorism and to ensure security" for "criminal

violence and aircraft piracy".

Subsec. (b)(1). Pub. L. 107-296, Sec. 1601(a)(2)(A), (B), in

introductory provisions, substituted "and the establishment of a

Department of Homeland Security, the Secretary of Transportation"

for ", the Under Secretary" and "ensuring security under this title

if the Secretary of Transportation" for "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 Under

Secretary".

Subsec. (b)(1)(C). Pub. L. 107-296, Sec. 1601(a)(2)(C),

substituted "transportation safety" for "the safety of passengers

in transportation".

2001 - Subsec. (a). Pub. L. 107-71, Sec. 101(e)(1), substituted

"Under Secretary of Transportation for Security" for "Administrator

of the Federal Aviation Administration".

Subsec. (b). Pub. L. 107-71, Sec. 101(e)(2), substituted "Under

Secretary" for "Administrator" in two places in introductory

provisions.

Subsec. (b)(1)(C). Pub. L. 107-71, Sec. 101(e)(3), struck out

"air" before "transportation".

Subsec. (c). Pub. L. 107-71, Sec. 101(e)(2), substituted "Under

Secretary" for "Administrator".

EFFECTIVE DATE OF 2002 AMENDMENT

Amendment by Pub. L. 107-296 effective 60 days after Nov. 25,

2002, see section 4 of Pub. L. 107-296, set out as an Effective

Date note under section 101 of Title 6, Domestic Security.

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of functions, personnel, assets, and liabilities of

the Transportation Security Administration of the Department of

Transportation, including the functions of the Secretary of

Transportation, and of the Under Secretary of Transportation for

Security, relating thereto, to the Secretary of Homeland Security,

and for treatment of related references, see sections 203(2),

551(d), 552(d), and 557 of Title 6, Domestic Security, and the

Department of Homeland Security Reorganization Plan of November 25,

2002, as modified, set out as a note under section 542 of Title 6.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 106, 115, 40109, 44501,

44508, 44921 of this title.

-End-

-CITE-

49 USC Sec. 40120 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40120. Relationship to other laws

-STATUTE-

(a) Nonapplication. - Except as provided in the International

Navigational Rules Act of 1977 (33 U.S.C. 1601 et seq.), the

navigation and shipping laws of the United States and the rules for

the prevention of collisions do not apply to aircraft or to the

navigation of vessels related to those aircraft.

(b) Extending Application Outside United States. - The President

may extend (in the way and for periods the President considers

necessary) the application of this part to outside the United

States when -

(1) an international arrangement gives the United States

Government authority to make the extension; and

(2) the President decides the extension is in the national

interest.

(c) Additional Remedies. - A remedy under this part is in

addition to any other remedies provided by law.

-SOURCE-

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1117.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

40120(a) 49 App.:1509(a). Aug. 23, 1958, Pub. L.

85-726, Secs. 1106, 1109(a),

1110, 72 Stat. 798, 799, 800.

40120(b) 49 App.:1510.

40120(c) 49 App.:1506.

--------------------------------------------------------------------

In subsection (a), the words "International Navigational Rules

Act of 1977 (33 U.S.C. 1601 et seq.)" are substituted for "sections

143 to 147d of title 33" because those sections were repealed by

section 3 of the Act of September 24, 1963 (Public Law 88-131, 77

Stat. 194), and replaced by 33:ch. 21. Chapter 21 was repealed by

section 10 of the International Navigational Rules Act of 1977

(Public Law 95-75, 91 Stat. 311) and replaced by 33:1601-1608. The

words "including any definition of 'vessel' or 'vehicle' found

therein" and "be construed to" are omitted as surplus.

In subsection (b), before clause (1), the words "to the extent",

"of time", and "any areas of land or water" are omitted as surplus.

The words "and the overlying airspace thereof" are omitted as being

included in "outside the United States". In clause (1), the words

"treaty, agreement or other lawful" and "necessary legal" are

omitted as surplus.

Subsection (c) is substituted for 49 App.:1506 to eliminate

unnecessary words and for clarity and consistency in the revised

title and with other titles of the United States Code.

-REFTEXT-

REFERENCES IN TEXT

The International Navigational Rules Act of 1977, referred to in

subsec. (a), is Pub. L. 95-75, July 27, 1977, 91 Stat. 308, as

amended, which is classified principally to chapter 30 (Sec. 1601

et seq.) of Title 33, Navigation and Navigable Waters. For complete

classification of this Act to the Code, see Short Title note set

out under section 1601 of Title 33 and Tables.

-EXEC-

EX. ORD. NO. 10854. EXTENSION OF APPLICATION

Ex. Ord. No. 10854, Nov. 27, 1959, 24 F.R. 9565, as amended by

Ex. Ord. No. 11382, Nov. 28, 1967, 32 F.R. 16247, provided:

The application of the Federal Aviation Act of 1958 (72 Stat.

731; 49 U.S.C.A. Sec. 1301 et seq. [see 49 U.S.C. 40101 et seq.]),

to the extent necessary to permit the Secretary of Transportation

to accomplish the purposes and objectives of Titles III [former 49

U.S.C. 1341 et seq., see Disposition Table at beginning of this

title] and XII [see 49 U.S.C. 40103(b)(3), 46307] thereof, is

hereby extended to those areas of land or water outside the United

States and the overlying airspace thereof over or in which the

Federal Government of the United States, under international

treaty, agreement or other lawful arrangement, has appropriate

jurisdiction or control: Provided, That the Secretary of

Transportation, prior to taking any action under the authority

hereby conferred, shall first consult with the Secretary of State

on matters affecting foreign relations, and with the Secretary of

Defense on matters affecting national-defense interests, and shall

not take any action which the Secretary of State determines to be

in conflict with any international treaty or agreement to which the

United States is a party, or to be inconsistent with the successful

conduct of the foreign relations of the United States, or which the

Secretary of Defense determines to be inconsistent with the

requirements of national defense.

-End-

-CITE-

49 USC Sec. 40121 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40121. Air traffic control modernization reviews

-STATUTE-

(a) Required Terminations of Acquisitions. - The Administrator of

the Federal Aviation Administration shall terminate any acquisition

program initiated after the date of the enactment of the Air

Traffic Management System Performance Improvement Act of 1996 and

funded under the Facilities and Equipment account that -

(1) is more than 50 percent over the cost goal established for

the program;

(2) fails to achieve at least 50 percent of the performance

goals established for the program; or

(3) is more than 50 percent behind schedule as determined in

accordance with the schedule goal established for the program.

(b) Authorized Termination of Acquisition Programs. - The

Administrator shall consider terminating, under the authority of

subsection (a), any substantial acquisition program that -

(1) is more than 10 percent over the cost goal established for

the program;

(2) fails to achieve at least 90 percent of the performance

goals established for the program; or

(3) is more than 10 percent behind schedule as determined in

accordance with the schedule goal established for the program.

(c) Exceptions and Report. -

(1) Continuance of program, etc. - Notwithstanding subsection

(a), the Administrator may continue an acquisitions program

required to be terminated under subsection (a) if the

Administrator determines that termination would be inconsistent

with the development or operation of the national air

transportation system in a safe and efficient manner.

(2) Department of defense. - The Department of Defense shall

have the same exemptions from acquisition laws as are waived by

the Administrator under section 40110(d)(2) of this title when

engaged in joint actions to improve or replenish the national air

traffic control system. The Administration may acquire real

property, goods, and services through the Department of Defense,

or other appropriate agencies, but is bound by the acquisition

laws and regulations governing those cases.

(3) Report. - If the Administrator makes a determination under

paragraph (1), the Administrator shall transmit a copy of the

determination, together with a statement of the basis for the

determination, to the Committees on Appropriations of the Senate

and the House of Representatives, the Committee on Commerce,

Science, and Transportation of the Senate, and the Committee on

Transportation and Infrastructure of the House of

Representatives.

-SOURCE-

(Added Pub. L. 104-264, title II, Sec. 252, Oct. 9, 1996, 110 Stat.

3236; amended Pub. L. 106-181, title III, Sec. 307(c)(2), Apr. 5,

2000, 114 Stat. 126.)

-REFTEXT-

REFERENCES IN TEXT

The date of the enactment of the Air Traffic Management System

Performance Improvement Act of 1996, referred to in subsec. (a), is

the date of enactment of Pub. L. 104-264, which was approved Oct.

9, 1996.

-COD-

CODIFICATION

Another section 40121 was renumbered section 40124 of this title.

-MISC1-

AMENDMENTS

2000 - Subsec. (c)(2). Pub. L. 106-181 substituted "section

40110(d)(2) of this title" for "section 348(b) of Public Law

104-50".

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-181 applicable only to fiscal years

beginning after Sept. 30, 1999, see section 3 of Pub. L. 106-181,

set out as a note under section 106 of this title.

EFFECTIVE DATE

Section effective on date that is 30 days after Oct. 9, 1996, see

section 203 of Pub. L. 104-264, set out as an Effective Date of

1996 Amendment note under section 106 of this title.

Except as otherwise specifically provided, section applicable

only to fiscal years beginning after Sept. 30, 1996, and not to be

construed as affecting funds made available for a fiscal year

ending before Oct. 1, 1996, see section 3 of Pub. L. 104-264, set

out as an Effective Date of 1996 Amendment note under section 106

of this title.

-End-

-CITE-

49 USC Sec. 40122 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40122. Federal Aviation Administration personnel management

system

-STATUTE-

(a) In General. -

(1) Consultation and negotiation. - In developing and making

changes to the personnel management system initially implemented

by the Administrator of the Federal Aviation Administration on

April 1, 1996, the Administrator shall negotiate with the

exclusive bargaining representatives of employees of the

Administration certified under section 7111 of title 5 and

consult with other employees of the Administration.

(2) Mediation. - If the Administrator does not reach an

agreement under paragraph (1) with the exclusive bargaining

representatives, the services of the Federal Mediation and

Conciliation Service shall be used to attempt to reach such

agreement. If the services of the Federal Mediation and

Conciliation Service do not lead to an agreement, the

Administrator's proposed change to the personnel management

system shall not take effect until 60 days have elapsed after the

Administrator has transmitted the proposed change, along with the

objections of the exclusive bargaining representatives to the

change, and the reasons for such objections, to Congress. The

60-day period shall not include any period during which Congress

has adjourned sine die.

(3) Cost savings and productivity goals. - The Administration

and the exclusive bargaining representatives of the employees

shall use every reasonable effort to find cost savings and to

increase productivity within each of the affected bargaining

units.

(4) Annual budget discussions. - The Administration and the

exclusive bargaining representatives of the employees shall meet

annually for the purpose of finding additional cost savings

within the Administration's annual budget as it applies to each

of the affected bargaining units and throughout the agency.

(b) Expert Evaluation. - On the date that is 3 years after the

personnel management system is implemented, the Administration

shall employ outside experts to provide an independent evaluation

of the effectiveness of the system within 3 months after such date.

For this purpose, the Administrator may utilize the services of

experts and consultants under section 3109 of title 5 without

regard to the limitation imposed by the last sentence of section

3109(b) of such title, and may contract on a sole source basis,

notwithstanding any other provision of law to the contrary.

(c) Pay Restriction. - No officer or employee of the

Administration may receive an annual rate of basic pay in excess of

the annual rate of basic pay payable to the Administrator.

(d) Ethics. - The Administration shall be subject to Executive

Order No. 12674 and regulations and opinions promulgated by the

Office of Government Ethics, including those set forth in section

2635 of title 5 of the Code of Federal Regulations.

(e) Employee Protections. - Until July 1, 1999, basic wages

(including locality pay) and operational differential pay provided

employees of the Administration shall not be involuntarily

adversely affected by reason of the enactment of this section,

except for unacceptable performance or by reason of a reduction in

force or reorganization or by agreement between the Administration

and the affected employees' exclusive bargaining representative.

(f) Labor-Management Agreements. - Except as otherwise provided

by this title, all labor-management agreements covering employees

of the Administration that are in effect on the effective date of

the Air Traffic Management System Performance Improvement Act of

1996 shall remain in effect until their normal expiration date,

unless the Administrator and the exclusive bargaining

representative agree to the contrary.

(g) Personnel Management System. -

(1) In general. - In consultation with the employees of the

Administration and such non-governmental experts in personnel

management systems as he may employ, and notwithstanding the

provisions of title 5 and other Federal personnel laws, the

Administrator shall develop and implement, not later than January

1, 1996, a personnel management system for the Administration

that addresses the unique demands on the agency's workforce. Such

a new system shall, at a minimum, provide for greater flexibility

in the hiring, training, compensation, and location of personnel.

(2) Applicability of title 5. - The provisions of title 5 shall

not apply to the new personnel management system developed and

implemented pursuant to paragraph (1), with the exception of -

(A) section 2302(b), relating to whistleblower protection,

including the provisions for investigation and enforcement as

provided in chapter 12 of title 5;

(B) sections 3308-3320, relating to veterans' preference;

(C) chapter 71, relating to labor-management relations;

(D) section 7204, relating to antidiscrimination;

(E) chapter 73, relating to suitability, security, and

conduct;

(F) chapter 81, relating to compensation for work injury;

(G) chapters 83-85, 87, and 89, relating to retirement,

unemployment compensation, and insurance coverage; and

(H) sections 1204, 1211-1218, 1221, and 7701-7703, relating

to the Merit Systems Protection Board.

(3) Appeals to merit systems protection board. - Under the new

personnel management system developed and implemented under

paragraph (1), an employee of the Administration may submit an

appeal to the Merit Systems Protection Board and may seek

judicial review of any resulting final orders or decisions of the

Board from any action that was appealable to the Board under any

law, rule, or regulation as of March 31, 1996.

(4) Effective date. - This subsection shall take effect on

April 1, 1996.

(h) Right To Contest Adverse Personnel Actions. - An employee of

the Federal Aviation Administration who is the subject of a major

adverse personnel action may contest the action either through any

contractual grievance procedure that is applicable to the employee

as a member of the collective bargaining unit or through the

Administration's internal process relating to review of major

adverse personnel actions of the Administration, known as

Guaranteed Fair Treatment, or under section 40122(g)(3).

(i) Election of Forum. - Where a major adverse personnel action

may be contested through more than one of the indicated forums

(such as the contractual grievance procedure, the Federal Aviation

Administration's internal process, or that of the Merit Systems

Protection Board), an employee must elect the forum through which

the matter will be contested. Nothing in this section is intended

to allow an employee to contest an action through more than one

forum unless otherwise allowed by law.

(j) Definition. - In this section, the term "major adverse

personnel action" means a suspension of more than 14 days, a

reduction in pay or grade, a removal for conduct or performance, a

nondisciplinary removal, a furlough of 30 days or less (but not

including placement in a nonpay status as the result of a lapse of

appropriations or an enactment by Congress), or a reduction in

force action.

-SOURCE-

(Added Pub. L. 104-264, title II, Sec. 253, Oct. 9, 1996, 110 Stat.

3237; amended Pub. L. 106-181, title III, Secs. 307(a), 308, Apr.

5, 2000, 114 Stat. 124, 126.)

-REFTEXT-

REFERENCES IN TEXT

Executive Order No. 12674, referred to in subsec. (d), is set out

as a note under section 7301 of Title 5, Government Organization

and Employees.

The effective date of the Air Traffic Management System

Performance Improvement Act of 1996, referred to in subsec. (f), is

the date that is 30 days after Oct. 9, 1996. See section 203 of

Pub. L. 104-264, set out as an Effective Date of 1996 Amendment

note under section 106 of this title.

-MISC1-

AMENDMENTS

2000 - Subsec. (a)(2). Pub. L. 106-181, Sec. 308(a), inserted at

end "The 60-day period shall not include any period during which

Congress has adjourned sine die."

Subsec. (g). Pub. L. 106-181, Sec. 307(a), added subsec. (g).

Subsecs. (h) to (j). Pub. L. 106-181, Sec. 308(b), added subsecs.

(h) to (j).

EFFECTIVE DATE OF 2000 AMENDMENT

Amendment by Pub. L. 106-181 applicable only to fiscal years

beginning after Sept. 30, 1999, see section 3 of Pub. L. 106-181,

set out as a note under section 106 of this title.

EFFECTIVE DATE

Section effective on date that is 30 days after Oct. 9, 1996, see

section 203 of Pub. L. 104-264, set out as an Effective Date of

1996 Amendment note under section 106 of this title.

Except as otherwise specifically provided, section applicable

only to fiscal years beginning after Sept. 30, 1996, and not to be

construed as affecting funds made available for a fiscal year

ending before Oct. 1, 1996, see section 3 of Pub. L. 104-264, set

out as an Effective Date of 1996 Amendment note under section 106

of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 106, 114 of this title.

-End-

-CITE-

49 USC Sec. 40123 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40123. Protection of voluntarily submitted information

-STATUTE-

(a) In General. - Notwithstanding any other provision of law,

neither the Administrator of the Federal Aviation Administration,

nor any agency receiving information from the Administrator, shall

disclose voluntarily-provided safety or security related

information if the Administrator finds that -

(1) the disclosure of the information would inhibit the

voluntary provision of that type of information and that the

receipt of that type of information aids in fulfilling the

Administrator's safety and security responsibilities; and

(2) withholding such information from disclosure would be

consistent with the Administrator's safety and security

responsibilities.

(b) Regulations. - The Administrator shall issue regulations to

carry out this section.

-SOURCE-

(Added Pub. L. 104-264, title IV, Sec. 402(a), Oct. 9, 1996, 110

Stat. 3255.)

-MISC1-

EFFECTIVE DATE

Except as otherwise specifically provided, section applicable

only to fiscal years beginning after Sept. 30, 1996, and not to be

construed as affecting funds made available for a fiscal year

ending before Oct. 1, 1996, see section 3 of Pub. L. 104-264, set

out as an Effective Date of 1996 Amendment note under section 106

of this title.

-End-

-CITE-

49 USC Sec. 40124 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40124. Interstate agreements for airport facilities

-STATUTE-

Congress consents to a State making an agreement, not in conflict

with a law of the United States, with another State to develop or

operate an airport facility.

-SOURCE-

(Added Pub. L. 104-287, Sec. 5(69)(A), Oct. 11, 1996, 110 Stat.

3395, Sec. 40121; renumbered Sec. 40124, Pub. L. 105-102, Sec.

3(d)(1)(B), Nov. 20, 1997, 111 Stat. 2215.)

-MISC1-

HISTORICAL AND REVISION NOTES

This restates 49:44502(e) as 49:40121 [now 40124] to provide a

more appropriate place in title 49.

AMENDMENTS

1997 - Pub. L. 105-102 amended Pub. L. 104-287, renumbering

section 40121 of this title as this section.

EFFECTIVE DATE OF 1997 AMENDMENT

Pub. L. 105-102, Sec. 3(d), Nov. 20, 1997, 111 Stat. 2215,

provided that the amendment made by section 3(d)(1)(B) is effective

Oct. 11, 1996.

Amendment by Pub. L. 105-102 effective as if included in the

provisions of the Act to which the amendment relates, see section

3(f) of Pub. L. 105-102, set out as a note under section 106 of

this title.

-End-

-CITE-

49 USC Sec. 40125 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40125. Qualifications for public aircraft status

-STATUTE-

(a) Definitions. - In this section, the following definitions

apply:

(1) Commercial purposes. - The term "commercial purposes" means

the transportation of persons or property for compensation or

hire, but does not include the operation of an aircraft by the

armed forces for reimbursement when that reimbursement is

required by any Federal statute, regulation, or directive, in

effect on November 1, 1999, or by one government on behalf of

another government under a cost reimbursement agreement if the

government on whose behalf the operation is conducted certifies

to the Administrator of the Federal Aviation Administration that

the operation is necessary to respond to a significant and

imminent threat to life or property (including natural resources)

and that no service by a private operator is reasonably available

to meet the threat.

(2) Governmental function. - The term "governmental function"

means an activity undertaken by a government, such as national

defense, intelligence missions, firefighting, search and rescue,

law enforcement (including transport of prisoners, detainees, and

illegal aliens), aeronautical research, or biological or

geological resource management.

(3) Qualified non-crewmember. - The term "qualified

non-crewmember" means an individual, other than a member of the

crew, aboard an aircraft -

(A) operated by the armed forces or an intelligence agency of

the United States Government; or

(B) whose presence is required to perform, or is associated

with the performance of, a governmental function.

(4) Armed forces. - The term "armed forces" has the meaning

given such term by section 101 of title 10.

(b) Aircraft Owned by Governments. - An aircraft described in

subparagraph (A), (B), (C), or (D) of section 40102(a)(37) does not

qualify as a public aircraft under such section when the aircraft

is used for commercial purposes or to carry an individual other

than a crewmember or a qualified non-crewmember.

(c) Aircraft Owned or Operated by the Armed Forces. -

(1) In general. - Subject to paragraph (2), an aircraft

described in section 40102(a)(37)(E) qualifies as a public

aircraft if -

(A) the aircraft is operated in accordance with title 10;

(B) the aircraft is operated in the performance of a

governmental function under title 14, 31, 32, or 50 and the

aircraft is not used for commercial purposes; or

(C) the aircraft is chartered to provide transportation to

the armed forces and the Secretary of Defense (or the Secretary

of the department in which the Coast Guard is operating)

designates the operation of the aircraft as being required in

the national interest.

(2) Limitation. - An aircraft that meets the criteria set forth

in paragraph (1) and that is owned or operated by the National

Guard of a State, the District of Columbia, or any territory or

possession of the United States, qualifies as a public aircraft

only to the extent that it is operated under the direct control

of the Department of Defense.

-SOURCE-

(Added Pub. L. 106-181, title VII, Sec. 702(b)(1), Apr. 5, 2000,

114 Stat. 155.)

-MISC1-

EFFECTIVE DATE

Section applicable only to fiscal years beginning after Sept. 30,

1999, see section 3 of Pub. L. 106-181, set out as an Effective

Date of 2000 Amendments note under section 106 of this title.

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of authorities, functions, personnel, and assets of

the Coast Guard, including the authorities and functions of the

Secretary of Transportation relating thereto, to the Department of

Homeland Security, and for treatment of related references, see

sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic

Security, and the Department of Homeland Security Reorganization

Plan of November 25, 2002, as modified, set out as a note under

section 542 of Title 6.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 40102 of this title.

-End-

-CITE-

49 USC Sec. 40126 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40126. Severable services contracts for periods crossing

fiscal years

-STATUTE-

(a) In General. - The Administrator of the Federal Aviation

Administration may enter into a contract for procurement of

severable services for a period that begins in 1 fiscal year and

ends in the next fiscal year if (without regard to any option to

extend the period of the contract) the contract period does not

exceed 1 year.

(b) Obligation of Funds. - Funds made available for a fiscal year

may be obligated for the total amount of a contract entered into

under the authority of subsection (a).

-SOURCE-

(Added Pub. L. 106-181, title VII, Sec. 705(a), Apr. 5, 2000, 114

Stat. 157.)

-MISC1-

EFFECTIVE DATE

Section applicable only to fiscal years beginning after Sept. 30,

1999, see section 3 of Pub. L. 106-181, set out as an Effective

Date of 2000 Amendments note under section 106 of this title.

-End-

-CITE-

49 USC Sec. 40127 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40127. Prohibitions on discrimination

-STATUTE-

(a) Persons in Air Transportation. - An air carrier or foreign

air carrier may not subject a person in air transportation to

discrimination on the basis of race, color, national origin,

religion, sex, or ancestry.

(b) Use of Private Airports. - Notwithstanding any other

provision of law, no State or local government may prohibit the use

or full enjoyment of a private airport within its jurisdiction by

any person on the basis of that person's race, color, national

origin, religion, sex, or ancestry.

-SOURCE-

(Added Pub. L. 106-181, title VII, Sec. 706(a), Apr. 5, 2000, 114

Stat. 157.)

-MISC1-

EFFECTIVE DATE

Section applicable only to fiscal years beginning after Sept. 30,

1999, see section 3 of Pub. L. 106-181, set out as an Effective

Date of 2000 Amendments note under section 106 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 46301 of this title.

-End-

-CITE-

49 USC Sec. 40128 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart i - general

CHAPTER 401 - GENERAL PROVISIONS

-HEAD-

Sec. 40128. Overflights of national parks

-STATUTE-

(a) In General. -

(1) General requirements. - A commercial air tour operator may

not conduct commercial air tour operations over a national park

or tribal lands except -

(A) in accordance with this section;

(B) in accordance with conditions and limitations prescribed

for that operator by the Administrator; and

(C) in accordance with any applicable air tour management

plan for the park or tribal lands.

(2) Application for operating authority. -

(A) Application required. - Before commencing commercial air

tour operations over a national park or tribal lands, a

commercial air tour operator shall apply to the Administrator

for authority to conduct the operations over the park or tribal

lands.

(B) Competitive bidding for limited capacity parks. -

Whenever an air tour management plan limits the number of

commercial air tour operations over a national park during a

specified time frame, the Administrator, in cooperation with

the Director, shall issue operation specifications to

commercial air tour operators that conduct such operations. The

operation specifications shall include such terms and

conditions as the Administrator and the Director find necessary

for management of commercial air tour operations over the park.

The Administrator, in cooperation with the Director, shall

develop an open competitive process for evaluating proposals

from persons interested in providing commercial air tour

operations over the park. In making a selection from among

various proposals submitted, the Administrator, in cooperation

with the Director, shall consider relevant factors, including -

(i) the safety record of the person submitting the proposal

or pilots employed by the person;

(ii) any quiet aircraft technology proposed to be used by

the person submitting the proposal;

(iii) the experience of the person submitting the proposal

with commercial air tour operations over other national parks

or scenic areas;

(iv) the financial capability of the person submitting the

proposal;

(v) any training programs for pilots provided by the person

submitting the proposal; and

(vi) responsiveness of the person submitting the proposal

to any relevant criteria developed by the National Park

Service for the affected park.

(C) Number of operations authorized. - In determining the

number of authorizations to issue to provide commercial air

tour operations over a national park, the Administrator, in

cooperation with the Director, shall take into consideration

the provisions of the air tour management plan, the number of

existing commercial air tour operators and current level of

service and equipment provided by any such operators, and the

financial viability of each commercial air tour operation.

(D) Cooperation with nps. - Before granting an application

under this paragraph, the Administrator, in cooperation with

the Director, shall develop an air tour management plan in

accordance with subsection (b) and implement such plan.

(E) Time limit on response to atmp applications. - The

Administrator shall make every effort to act on any application

under this paragraph and issue a decision on the application

not later than 24 months after it is received or amended.

(F) Priority. - In acting on applications under this

paragraph to provide commercial air tour operations over a

national park, the Administrator shall give priority to an

application under this paragraph in any case in which a new

entrant commercial air tour operator is seeking operating

authority with respect to that national park.

(3) Exception. - Notwithstanding paragraph (1), commercial air

tour operators may conduct commercial air tour operations over a

national park under part 91 of the title 14, Code of Federal

Regulations if -

(A) such activity is permitted under part 119 of such title;

(B) the operator secures a letter of agreement from the

Administrator and the national park superintendent for that

national park describing the conditions under which the

operations will be conducted; and

(C) the total number of operations under this exception is

limited to not more than five flights in any 30-day period over

a particular park.

(4) Special rule for safety requirements. - Notwithstanding

subsection (c), an existing commercial air tour operator shall

apply, not later than 90 days after the date of the enactment of

this section, for operating authority under part 119, 121, or 135

of title 14, Code of Federal Regulations. A new entrant

commercial air tour operator shall apply for such authority

before conducting commercial air tour operations over a national

park or tribal lands. The Administrator shall make every effort

to act on any such application for a new entrant and issue a

decision on the application not later than 24 months after it is

received or amended.

(b) Air Tour Management Plans. -

(1) Establishment. -

(A) In general. - The Administrator, in cooperation with the

Director, shall establish an air tour management plan for any

national park or tribal land for which such a plan is not in

effect whenever a person applies for authority to conduct a

commercial air tour operation over the park. The air tour

management plan shall be developed by means of a public process

in accordance with paragraph (4).

(B) Objective. - The objective of any air tour management

plan shall be to develop acceptable and effective measures to

mitigate or prevent the significant adverse impacts, if any, of

commercial air tour operations upon the natural and cultural

resources, visitor experiences, and tribal lands.

(2) Environmental determination. - In establishing an air tour

management plan under this subsection, the Administrator and the

Director shall each sign the environmental decision document

required by section 102 of the National Environmental Policy Act

of 1969 (42 U.S.C. 4332) which may include a finding of no

significant impact, an environmental assessment, or an

environmental impact statement and the record of decision for the

air tour management plan.

(3) Contents. - An air tour management plan for a national park

-

(A) may prohibit commercial air tour operations in whole or

in part;

(B) may establish conditions for the conduct of commercial

air tour operations, including commercial air tour routes,

maximum or minimum altitudes, time-of-day restrictions,

restrictions for particular events, maximum number of flights

per unit of time, intrusions on privacy on tribal lands, and

mitigation of noise, visual, or other impacts;

(C) shall apply to all commercial air tour operations within

1/2 mile outside the boundary of a national park;

(D) shall include incentives (such as preferred commercial

air tour routes and altitudes, relief from caps and curfews)

for the adoption of quiet aircraft technology by commercial air

tour operators conducting commercial air tour operations at the

park;

(E) shall provide for the initial allocation of opportunities

to conduct commercial air tour operations if the plan includes

a limitation on the number of commercial air tour operations

for any time period; and

(F) shall justify and document the need for measures taken

pursuant to subparagraphs (A) through (E) and include such

justifications in the record of decision.

(4) Procedure. - In establishing an air tour management plan

for a national park or tribal lands, the Administrator and the

Director shall -

(A) hold at least one public meeting with interested parties

to develop the air tour management plan;

(B) publish the proposed plan in the Federal Register for

notice and comment and make copies of the proposed plan

available to the public;

(C) comply with the regulations set forth in sections 1501.3

and 1501.5 through 1501.8 of title 40, Code of Federal

Regulations (for purposes of complying with the regulations,

the Federal Aviation Administration shall be the lead agency

and the National Park Service is a cooperating agency); and

(D) solicit the participation of any Indian tribe whose

tribal lands are, or may be, overflown by aircraft involved in

a commercial air tour operation over the park or tribal lands

to which the plan applies, as a cooperating agency under the

regulations referred to in subparagraph (C).

(5) Judicial review. - An air tour management plan developed

under this subsection shall be subject to judicial review.

(6) Amendments. - The Administrator, in cooperation with the

Director, may make amendments to an air tour management plan. Any

such amendments shall be published in the Federal Register for

notice and comment. A request for amendment of an air tour

management plan shall be made in such form and manner as the

Administrator may prescribe.

(c) Interim Operating Authority. -

(1) In general. - Upon application for operating authority, the

Administrator shall grant interim operating authority under this

subsection to a commercial air tour operator for commercial air

tour operations over a national park or tribal lands for which

the operator is an existing commercial air tour operator.

(2) Requirements and limitations. - Interim operating authority

granted under this subsection -

(A) shall provide annual authorization only for the greater

of -

(i) the number of flights used by the operator to provide

the commercial air tour operations within the 12-month period

prior to the date of the enactment of this section; or

(ii) the average number of flights per 12-month period used

by the operator to provide such operations within the

36-month period prior to such date of enactment, and, for

seasonal operations, the number of flights so used during the

season or seasons covered by that 12-month period;

(B) may not provide for an increase in the number of

commercial air tour operations conducted during any time period

by the commercial air tour operator above the number that the

air tour operator was originally granted unless such an

increase is agreed to by the Administrator and the Director;

(C) shall be published in the Federal Register to provide

notice and opportunity for comment;

(D) may be revoked by the Administrator for cause;

(E) shall terminate 180 days after the date on which an air

tour management plan is established for the park or tribal

lands;

(F) shall promote protection of national park resources,

visitor experiences, and tribal lands;

(G) shall promote safe commercial air tour operations;

(H) shall promote the adoption of quiet technology, as

appropriate; and

(I) shall allow for modifications of the interim operating

authority based on experience if the modification improves

protection of national park resources and values and of tribal

lands.

(3) New entrant air tour operators. -

(A) In general. - The Administrator, in cooperation with the

Director, may grant interim operating authority under this

paragraph to an air tour operator for a national park or tribal

lands for which that operator is a new entrant air tour

operator if the Administrator determines the authority is

necessary to ensure competition in the provision of commercial

air tour operations over the park or tribal lands.

(B) Safety limitation. - The Administrator may not grant

interim operating authority under subparagraph (A) if the

Administrator determines that it would create a safety problem

at the park or on the tribal lands, or the Director determines

that it would create a noise problem at the park or on the

tribal lands.

(C) ATMP limitation. - The Administrator may grant interim

operating authority under subparagraph (A) of this paragraph

only if the air tour management plan for the park or tribal

lands to which the application relates has not been developed

within 24 months after the date of the enactment of this

section.

(d) Exemptions. - This section shall not apply to -

(1) the Grand Canyon National Park; or

(2) tribal lands within or abutting the Grand Canyon National

Park.

(e) Lake Mead. - This section shall not apply to any air tour

operator while flying over or near the Lake Mead National

Recreation Area, solely as a transportation route, to conduct an

air tour over the Grand Canyon National Park.

(f) Definitions. - In this section, the following definitions

apply:

(1) Commercial air tour operator. - The term "commercial air

tour operator" means any person who conducts a commercial air

tour operation.

(2) Existing commercial air tour operator. - The term "existing

commercial air tour operator" means a commercial air tour

operator that was actively engaged in the business of providing

commercial air tour operations over a national park at any time

during the 12-month period ending on the date of the enactment of

this section.

(3) New entrant commercial air tour operator. - The term "new

entrant commercial air tour operator" means a commercial air tour

operator that -

(A) applies for operating authority as a commercial air tour

operator for a national park or tribal lands; and

(B) has not engaged in the business of providing commercial

air tour operations over the national park or tribal lands in

the 12-month period preceding the application.

(4) Commercial air tour operation. -

(A) In general. - The term "commercial air tour operation"

means any flight, conducted for compensation or hire in a

powered aircraft where a purpose of the flight is sightseeing

over a national park, within 1/2 mile outside the boundary of

any national park, or over tribal lands, during which the

aircraft flies -

(i) below a minimum altitude, determined by the

Administrator in cooperation with the Director, above ground

level (except solely for purposes of takeoff or landing, or

necessary for safe operation of an aircraft as determined

under the rules and regulations of the Federal Aviation

Administration requiring the pilot-in-command to take action

to ensure the safe operation of the aircraft); or

(ii) less than 1 mile laterally from any geographic feature

within the park (unless more than 1/2 mile outside the

boundary).

(B) Factors to consider. - In making a determination of

whether a flight is a commercial air tour operation for

purposes of this section, the Administrator may consider -

(i) whether there was a holding out to the public of

willingness to conduct a sightseeing flight for compensation

or hire;

(ii) whether a narrative that referred to areas or points

of interest on the surface below the route of the flight was

provided by the person offering the flight;

(iii) the area of operation;

(iv) the frequency of flights conducted by the person

offering the flight;

(v) the route of flight;

(vi) the inclusion of sightseeing flights as part of any

travel arrangement package offered by the person offering the

flight;

(vii) whether the flight would have been canceled based on

poor visibility of the surface below the route of the flight;

and

(viii) any other factors that the Administrator and the

Director consider appropriate.

(5) National park. - The term "national park" means any unit of

the National Park System.

(6) Tribal lands. - The term "tribal lands" means Indian

country (as that term is defined in section 1151 of title 18)

that is within or abutting a national park.

(7) Administrator. - The term "Administrator" means the

Administrator of the Federal Aviation Administration.

(8) Director. - The term "Director" means the Director of the

National Park Service.

-SOURCE-

(Added Pub. L. 106-181, title VIII, Sec. 803(a), Apr. 5, 2000, 114

Stat. 186.)

-REFTEXT-

REFERENCES IN TEXT

The date of the enactment of this section, referred to in

subsecs. (a)(4), (c)(2)(A), (3)(C), and (f)(2), is the date of

enactment of Pub. L. 106-181, which was approved Apr. 5, 2000.

-MISC1-

EFFECTIVE DATE

Section applicable only to fiscal years beginning after Sept. 30,

1999, see section 3 of Pub. L. 106-181, set out as an Effective

Date of 2000 Amendments note under section 106 of this title.

NATIONAL PARKS AIR TOUR MANAGEMENT

Pub. L. 106-181, title VIII, Apr. 5, 2000, 114 Stat. 185, as

amended by Pub. L. 106-528, Sec. 8(b), Nov. 22, 2000, 114 Stat.

2522, provided that:

"SEC. 801. SHORT TITLE.

"This title may be cited as the 'National Parks Air Tour

Management Act of 2000'.

"SEC. 802. FINDINGS.

"Congress finds that -

"(1) the Federal Aviation Administration has sole authority to

control airspace over the United States;

"(2) the Federal Aviation Administration has the authority to

preserve, protect, and enhance the environment by minimizing,

mitigating, or preventing the adverse effects of aircraft

overflights on public and tribal lands;

"(3) the National Park Service has the responsibility of

conserving the scenery and natural and historic objects and

wildlife in national parks and of providing for the enjoyment of

the national parks in ways that leave the national parks

unimpaired for future generations;

"(4) the protection of tribal lands from aircraft overflights

is consistent with protecting the public health and welfare and

is essential to the maintenance of the natural and cultural

resources of Indian tribes;

"(5) the National Parks Overflights Working Group, composed of

general aviation, commercial air tour, environmental, and Native

American representatives, recommended that the Congress enact

legislation based on the Group's consensus work product; and

"(6) this title reflects the recommendations made by that

Group.

"SEC. 803. AIR TOUR MANAGEMENT PLANS FOR NATIONAL PARKS.

"(a) In General. - [Enacted this section.]

"(b) Conforming Amendment. - [Amended analysis for chapter 401 of

this title.]

"(c) Compliance With Other Regulations. - For purposes of section

40128 of title 49, United States Code -

"(1) regulations issued by the Secretary of Transportation and

the Administrator [of the Federal Aviation Administration] under

section 3 of Public Law 100-91 (16 U.S.C. 1a-1 note); and

"(2) commercial air tour operations carried out in compliance

with the requirements of those regulations,

shall be deemed to meet the requirements of such section 40128.

"SEC. 804. QUIET AIRCRAFT TECHNOLOGY FOR GRAND CANYON.

"(a) Quiet Technology Requirements. - Within 12 months after the

date of the enactment of this Act [Apr. 5, 2000], the Administrator

shall designate reasonably achievable requirements for fixed-wing

and helicopter aircraft necessary for such aircraft to be

considered as employing quiet aircraft technology for purposes of

this section. If the Administrator determines that the

Administrator will not be able to make such designation before the

last day of such 12-month period, the Administrator shall transmit

to Congress a report on the reasons for not meeting such time

period and the expected date of such designation.

"(b) Routes or Corridors. - In consultation with the Director and

the advisory group established under section 805, the Administrator

shall establish, by rule, routes or corridors for commercial air

tour operations (as defined in section 40128(f) of title 49, United

States Code) by fixed-wing and helicopter aircraft that employ

quiet aircraft technology for -

"(1) tours of the Grand Canyon originating in Clark County,

Nevada; and

"(2) 'local loop' tours originating at the Grand Canyon

National Park Airport, in Tusayan, Arizona,

provided that such routes or corridors can be located in areas that

will not negatively impact the substantial restoration of natural

quiet, tribal lands, or safety.

"(c) Operational Caps. - Commercial air tour operations by any

fixed-wing or helicopter aircraft that employs quiet aircraft

technology and that replaces an existing aircraft shall not be

subject to the operational flight allocations that apply to other

commercial air tour operations of the Grand Canyon, provided that

the cumulative impact of such operations does not increase noise at

the Grand Canyon.

"(d) Modification of Existing Aircraft To Meet Standards. - A

commercial air tour operation by a fixed-wing or helicopter

aircraft in a commercial air tour operator's fleet on the date of

the enactment of this Act [Apr. 5, 2000] that meets the

requirements designated under subsection (a), or is subsequently

modified to meet the requirements designated under subsection (a),

may be used for commercial air tour operations under the same terms

and conditions as a replacement aircraft under subsection (c)

without regard to whether it replaces an existing aircraft.

"(e) Mandate To Restore Natural Quiet. - Nothing in this Act

[should be "this title"] shall be construed to relieve or diminish

-

"(1) the statutory mandate imposed upon the Secretary of the

Interior and the Administrator of the Federal Aviation

Administration under Public Law 100-91 (16 U.S.C. 1a-1 note) to

achieve the substantial restoration of the natural quiet and

experience at the Grand Canyon National Park; and

"(2) the obligations of the Secretary and the Administrator to

promulgate forthwith regulations to achieve the substantial

restoration of the natural quiet and experience at the Grand

Canyon National Park.

"SEC. 805. ADVISORY GROUP.

"(a) Establishment. - Not later than 1 year after the date of the

enactment of this Act [Apr. 5, 2000], the Administrator [of the

Federal Aviation Administration] and the Director of the National

Park Service shall jointly establish an advisory group to provide

continuing advice and counsel with respect to commercial air tour

operations over and near national parks.

"(b) Membership. -

"(1) In general. - The advisory group shall be composed of -

"(A) a balanced group of -

"(i) representatives of general aviation;

"(ii) representatives of commercial air tour operators;

"(iii) representatives of environmental concerns; and

"(iv) representatives of Indian tribes;

"(B) a representative of the Federal Aviation Administration;

and

"(C) a representative of the National Park Service.

"(2) Ex officio members. - The Administrator (or the designee

of the Administrator) and the Director (or the designee of the

Director) shall serve as ex officio members.

"(3) Chairperson. - The representative of the Federal Aviation

Administration and the representative of the National Park

Service shall serve alternating 1-year terms as chairman of the

advisory group, with the representative of the Federal Aviation

Administration serving initially until the end of the calendar

year following the year in which the advisory group is first

appointed.

"(c) Duties. - The advisory group shall provide advice,

information, and recommendations to the Administrator and the

Director -

"(1) on the implementation of this title and the amendments

made by this title;

"(2) on commonly accepted quiet aircraft technology for use in

commercial air tour operations over a national park or tribal

lands, which will receive preferential treatment in a given air

tour management plan;

"(3) on other measures that might be taken to accommodate the

interests of visitors to national parks; and

"(4) at the request of the Administrator and the Director,

safety, environmental, and other issues related to commercial air

tour operations over a national park or tribal lands.

"(d) Compensation; Support; FACA. -

"(1) Compensation and travel. - Members of the advisory group

who are not officers or employees of the United States, while

attending conferences or meetings of the group or otherwise

engaged in its business, or while serving away from their homes

or regular places of business, may be allowed travel expenses,

including per diem in lieu of subsistence, as authorized by

section 5703 of title 5, United States Code, for persons in the

Government service employed intermittently.

"(2) Administrative support. - The Federal Aviation

Administration and the National Park Service shall jointly

furnish to the advisory group clerical and other assistance.

"(3) Nonapplication of faca. - Section 14 of the Federal

Advisory Committee Act (5 U.S.C. App.) does not apply to the

advisory group.

"SEC. 806. PROHIBITION OF COMMERCIAL AIR TOUR OPERATIONS OVER THE

ROCKY MOUNTAIN NATIONAL PARK.

"Effective beginning on the date of the enactment of this Act

[Apr. 5, 2000], no commercial air tour operation may be conducted

in the airspace over the Rocky Mountain National Park

notwithstanding any other provision of this Act or section 40128 of

title 49, United States Code.

"SEC. 807. REPORTS.

"(a) Overflight Fee Report. - Not later than 180 days after the

date of the enactment of this Act [Apr. 5, 2000], the Administrator

[of the Federal Aviation Administration] shall transmit to Congress

a report on the effects overflight fees are likely to have on the

commercial air tour operation industry. The report shall include,

but shall not be limited to -

"(1) the viability of a tax credit for the commercial air tour

operators equal to the amount of any overflight fees charged by

the National Park Service; and

"(2) the financial effects proposed offsets are likely to have

on Federal Aviation Administration budgets and appropriations.

"(b) Quiet Aircraft Technology Report. - Not later than 2 years

after the date of the enactment of this Act, the Administrator and

the Director of the National Park Service shall jointly transmit a

report to Congress on the effectiveness of this title in providing

incentives for the development and use of quiet aircraft

technology.

"SEC. 808. METHODOLOGIES USED TO ASSESS AIR TOUR NOISE.

"Any methodology adopted by a Federal agency to assess air tour

noise in any unit of the national park system (including the Grand

Canyon and Alaska) shall be based on reasonable scientific methods.

"SEC. 809. ALASKA EXEMPTION.

"The provisions of this title and section 40128 of title 49,

United States Code, as added by section 803(a), do not apply to any

land or waters located in Alaska."

-End-

-CITE-

49 USC subpart ii - economic regulation 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE VII - AVIATION PROGRAMS

PART A - AIR COMMERCE AND SAFETY

subpart ii - economic regulation

-HEAD-

SUBPART II - ECONOMIC REGULATION

-SECREF-

SUBPART REFERRED TO IN OTHER SECTIONS

This subpart is referred to in sections 40101, 40102, 40109,

40114, 44712 of this title; title 2 section 451.

-End-