To reauthorize Federal Aviation Administration Programs for the period beginning on October 1, 2003, and ending on March 31, 2004, and for other purposes.

September 16, 2003

Mr. ROCKEFELLER (for himself, Mr. HOLLINGS, Mr. LAUTENBERG, and Mr. NELSON of Florida) introduced the following bill; which was read the first time

September 17, 2003

Read the second time and placed on the calendar

To reauthorize Federal Aviation Administration Programs for the period beginning on October 1, 2003, and ending on March 31, 2004, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the `Temporary Federal Aviation Administration Reauthorization Act of 2003'.

(b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Amendments to title 49, United States Code.

Sec. 3. Applicability.

TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS

Subtitle A--Funding of FAA Programs

Sec. 101. Airport planning and development and noise compatibility planning and programs.

Sec. 102. Air navigation facilities and equipment.

Sec. 103. Federal Aviation Administration operations.

Sec. 104. Funding for aviation programs.

Sec. 105. Agreements for operation of airport facilities.

Sec. 106. Flexible funding for nonprimary airport apportionments.

Subtitle B--AIP Modifications

Sec. 121. Apportionments to primary airports.

Sec. 122. Temporary increase in government share of certain aip project costs.

Subtitle C--Miscellaneous

Sec. 141. Midway Island airport.

Sec. 142. Marshall Islands, Micronesia, and Palau.

Title II--AIRLINE SERVICE IMPROVEMENTS

Sec. 201. Essential air service authorization.

Sec. 202. Small community air service.

Sec. 203. Hold harmless provision for essential air service.

Title III--AVIATION SECURITY

Sec. 301. Crew training.

Sec. 302. CAPPS2.

Sec. 303. Report on passenger prescreening program.

Sec. 304. Flight training.

Sec. 305. Prohibition on air traffic control privatization.

Title IV--AVIATION RESEARCH

Sec. 401. Authorization of appropriations.

Title V--EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURE AUTHORITY

Sec. 501. Extension of expenditure authority.

Sec. 502. Technical correction to flight segment..AEMD23AF

SEC. 2. AMENDMENTS TO TITLE 49, UNITED STATES CODE.

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

SEC. 3. APPLICABILITY.

Except as otherwise specifically provided, this Act and the amendments made by this Act shall apply only to fiscal years beginning after September 30, 2003.

TITLE I--AIRPORT AND AIRWAY IMPROVEMENTS

Subtitle A--Funding of FAA Programs

SEC. 101. AIRPORT PLANNING AND DEVELOPMENT AND NOISE COMPATIBILITY PLANNING AND PROGRAMS.

(a) AUTHORIZATION- Section 48103 is amended--

(1) by striking `September 30, 1998,' and inserting `September 30, 2003,'; and

(2) by striking `shall be--' and all that follows through `Such' and inserting `$1,700,000,000 for the period beginning on October 1, 2003, and ending on March 31, 2004. Such'.

(b) OBLIGATIONAL AUTHORITY- Section 47104(c) is amended by striking `September 30, 2003,' and inserting `September 30, 2004,'.

SEC. 102. AIR NAVIGATION FACILITIES AND EQUIPMENT.

Section 48101 is amended--

(1) in subsection (a) by striking `title:' and all that follows and inserting `title $1,569,000,000 for the period beginning on October 1, 2003, and ending on March 31, 2004,.'; and

(2) by striking subsections (b), (d), and (e) and redesignating subsection (c) as subsection (b).

SEC. 103. FEDERAL AVIATION ADMINISTRATION OPERATIONS.

(a) IN GENERAL- Section 106(k)(1) is amended to read as follows:

`(1) SALARIES, OPERATIONS, AND MAINTENANCE- There is authorized to be appropriated to the Secretary of Transportation for salaries, operations, and maintenance of the Administration $3,795,500,000 for the period beginning on October 1, 2003, and ending on March 31, 2004. Such sums shall remain available until expended.'.

(b) AUTHORIZED EXPENDITURES- Section 106(k)(2) is amended--

(1) by striking subparagraphs (A) and (B) and subparagraphs (F) through (I);

(2) by redesignating subparagraphs (C), (D), and (E) as subparagraphs (A), (B), and (C), respectively;

(3) in subparagraphs (A), (B), and (C) (as so redesignated) by striking `fiscal years 2000 through 2003' and inserting `the period beginning on October 1, 2003, and ending on March 31, 2004,'; and

(c) AIRLINE DATA AND ANALYSIS- There is authorized to be appropriated to the Secretary of Transportation, out of the Airport and Airway Trust Fund established by section 9502 of the Internal Revenue Code of 1986 (26 U.S.C. 9502), $1,895,500 for the period beginning on October 1, 2003, and ending on March 31, 2004, to gather aviation data and conduct analyses of such data in the Bureau of Transportation Statistics of the Department of Transportation.

SEC. 104. FUNDING FOR AVIATION PROGRAMS.

(a) IN GENERAL- Chapter 481 is amended by adding at the end the following:

`Sec. 48114. Funding for aviation programs

`(a) AUTHORIZATION OF APPROPRIATIONS-

`(1) AIRPORT AND AIRWAY TRUST FUND GUARANTEE-

`(A) IN GENERAL- The total budget resources made available from the Airport and Airway Trust Fund for the period beginning on October 1, 2003, and ending on March 31, 2004, pursuant to sections 48101, 48102, 48103, and 106(k) of title 49, United States Code, shall be equal to the level of receipts plus interest credited to the Airport and Airway Trust Fund for that fiscal year. Such amounts may be used only for aviation investment programs listed in subsection (b).

`(B) GUARANTEE- No funds may be appropriated or limited for aviation investment programs listed in subsection (b) unless the amount described in subparagraph (A) has been provided.

`(2) ADDITIONAL AUTHORIZATIONS OF APPROPRIATIONS FROM THE GENERAL FUND- In the period beginning on October 1, 2003, and ending on March 31, 2004, if the amount described in paragraph (1) is appropriated, there is further authorized to be appropriated from the general fund of the Treasury such sums as may be necessary for the Federal Aviation Administration Operations account.

`(b) DEFINITIONS- In this section:

`(1) TOTAL BUDGET RESOURCES- The term `total budget resources' means the total amount made available from the Airport and Airway Trust Fund for the sum of obligation limitations and budget authority made available for a fiscal year for the following budget accounts that are subject to the obligation limitation on contract authority provided in this Act and for which appropriations are provided pursuant to authorizations contained in this Act:

`(A) 69-8106-0-7-402 (Grants in Aid for Airports).

`(B) 69-8107-0-7-402 (Facilities and Equipment).

`(C) 69-8108-0-7-402 (Research and Development).

`(D) 69-8104-0-7-402 (Trust Fund Share of Operations).

`(2) LEVEL OF RECEIPTS PLUS INTEREST- The term `level of receipts plus interest' means the level of excise taxes and interest credited to the Airport and Airway Trust Fund under section 9502 of the Internal Revenue Code of 1986 for a fiscal year as set forth in the President's budget baseline projection as defined in section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99-177) (Treasury identification code 20-8103-0-7-402) for that fiscal year submitted pursuant to section 1105 of title 31, United States Code.

`(c) ENFORCEMENT OF GUARANTEES-

`(1) TOTAL AIRPORT AND AIRWAY TRUST FUND FUNDING- It shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, amendment, motion, or conference report that would cause total budget resources in a fiscal year for aviation investment programs described in subsection (b) to be less than the amount required by subsection (a)(1)(A) for such fiscal year.

`(2) CAPITAL PRIORITY- It shall not be in order in the House of Representatives or the Senate to consider any bill, joint resolution, amendment, motion, or conference report that provides an appropriation (or any amendment thereto) for fiscal year 2004 for Research and Development or Operations if the sum of the obligation limitation for Grants-in-Aid for Airports and the appropriation for Facilities and Equipment for such fiscal year is below the sum of the authorized levels for Grants-in-Aid for Airports and for Facilities and Equipment for such fiscal year.'.

(b) CONFORMING AMENDMENT- The analysis for chapter 481 is amended by adding at the end the following:

`48114. Funding for aviation programs.'.

(c) REPEAL- Section 106 of the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (49 U.S.C. 48101 note) is repealed.

SEC. 105. AGREEMENTS FOR OPERATION OF AIRPORT FACILITIES.

Section 47124 is amended--

(1) in (b)(3) by--

(A) in the paragraph heading by striking `PILOT';

(B) by striking `pilot' each place it appears; and

(C) in subparagraph (E) by striking `$6,000,000 per fiscal year' and inserting `$3,250,000 for the period beginning on October 1, 2003, and ending on March 31, 2004,'; and

(2) in subsection (b)(4)(C) by striking `$1,100,000.' and inserting `$1,500,000.'.

SEC. 106. FLEXIBLE FUNDING FOR NONPRIMARY AIRPORT APPORTIONMENTS.

(a) PROJECT GRANT AGREEMENTS- Section 47108(a) is amended by inserting `or 47114(d)(3)(A)' after `under section 47114(c)'.

(b) ALLOWABLE PROJECT COSTS- Section 47110 is amended--

(1) in subsection (b)(2)(C) by striking `of this title' and inserting `or section 47114(d)(3)(A)';

(2) in subsection (g)--

(A) by inserting `or section 47114(d)(3)(A)' after `of section 47114(c)'; and

(B) by striking `of project' and inserting `of the project'; and

(3) by adding at the end the following:

`(h) NONPRIMARY AIRPORTS- The Secretary may decide that the costs of revenue producing aeronautical support facilities, including fuel farms and hangars, are allowable for an airport development project at a nonprimary airport if the Government's share of such costs is paid only with funds apportioned to the airport sponsor under section 47114(d)(3)(A) and if the Secretary determines that the sponsor has made adequate provision for financing airside needs of the airport.'.

(c) WAIVER- Section 47117(c)(2) is amended to read as follows:

`(2) WAIVER- A sponsor of an airport may make an agreement with the Secretary of Transportation waiving the sponsor's claim to any part of the amount apportioned for the airport under sections 47114(c) and 47114(d)(3)(A) if the Secretary agrees to make the waived amount available for a grant for another public-use airport in the same State or geographical area as the airport, as determined by the Secretary.'.

(d) TERMINAL DEVELOPMENT COSTS- Section 47119(b) is amended--

(1) by striking `or' at the end of paragraph (3);

(2) by striking the period at the end of paragraph (4) and inserting `; or'; and

(3) by adding at the end the following:

`(5) to a sponsor of a nonprimary airport, any part of amounts apportioned to the sponsor for the fiscal year under section 47114(d)(3)(A) for project costs allowable under section 47110(d).'.

Subtitle B--AIP Modifications

SEC. 121. APPORTIONMENTS TO PRIMARY AIRPORTS.

(a) IN GENERAL- Section 47114(c)(1) is amended by adding at the end the following:

`(F) Special rule for fiscal year 2004- Notwithstanding subparagraph (A) and the absence of scheduled passenger aircraft service at an airport, the Secretary may apportion in the period beginning on October 1, 2003, and ending on March 31, 2004, to the sponsor of the airport an amount equal to the amount apportioned to that sponsor in fiscal year 2002 or 2003, whichever amount is greater, if the Secretary finds that--

`(i) the passenger boardings at the airport were below 10,000 in calendar year 2002 or 2003;

`(ii) the airport had at least 10,000 passenger boardings and scheduled passenger aircraft service in either calendar year 2000 or 2001; and

`(iii) the reason that passenger boardings described in clause (i) were below 10,000 was the decrease in passengers following the terrorist attacks of September 11, 2001.'.

(b) SPECIAL RULE FOR TRANSITIONING AIRPORTS- Section 47114(f)(3) is amended--

(1) in the paragraph heading by striking `AIRORTS' and inserting `AIRPORTS'; and

(2) in subparagraph (B) by striking `fiscal years 2000 through 2003' and inserting `fiscal year 2004'.

SEC. 122. TEMPORARY INCREASE IN GOVERNMENT SHARE OF CERTAIN AIP PROJECT COSTS.

Notwithstanding section 47109(a) of title 49, United States Code, the Government's share of allowable project costs for a grant made in the period beginning on October 1, 2003, and ending on March 31, 2004, under chapter 471 of that title for a project described in paragraph (2) or (3) of that section shall be 95 percent.

Subtitle C--Miscellaneous

SEC. 141. MIDWAY ISLAND AIRPORT.

(a) FUNDING TO SECRETARY OF THE INTERIOR FOR MIDWAY ISLAND AIRPORT- The Secretary of Transportation may enter into a reimbursable agreement with the Secretary of the Interior for the purpose of funding airport development, as defined in section 47102(3) of title 49, United States Code, at Midway Island Airport for the period beginning on October 1, 2003, and ending on March 31, 2004, from amounts available in the discretionary fund established by section 47115 of such title. The maximum obligation under the agreement for any such fiscal year shall be $2,500,000.

SEC. 142. MARSHALL ISLANDS, MICRONESIA, AND PALAU.

Section 47115 is amended by adding at the end the following:

`(j) MARSHALL ISLANDS, MICRONESIA, AND PALAU- For the period beginning on October 1, 2003, and ending on March 31, 2004, the sponsors of airports located in the Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau shall be eligible for grants under this section and section 47116.'.

TITLE II--AIRLINE SERVICE IMPROVEMENTS

SEC. 201. ESSENTIAL AIR SERVICE AUTHORIZATION.

Section 41742 is amended--

(1) in subsection (a)(2)--

(A) by striking `$15,000,000 for each fiscal year' and inserting `$38,500,000 for the period beginning on October 1, 2003, and ending on March 31, 2004,'; and

(B) by inserting before the period at the end `of which not more than $6,000,000 may be used for the marketing incentive program for communities and for State marketing assistance';

(2) by adding at the end of subsection (a) the following:

`(3) AUTHORIZATION FOR ADDITIONAL EMPLOYEES- In addition to amounts authorized under paragraphs (1) and (2), there are authorized to be appropriated such sums as may be necessary for the Secretary of Transportation to hire and employ 4

additional employees for the office responsible for carrying out the essential air service program.'; and

(3) by striking subsection (c) and redesignating subsection (d) as subsection (c).

SEC. 202. SMALL COMMUNITY AIR SERVICE.

Section 41743 is amended by inserting after `2003' the following `, and $17,500,000 for the period beginning on October 1, 2003, and ending on March 31, 2004,'; and

(5) in subsection (f) by striking `pilot'.

SEC. 203. HOLD HARMLESS PROVISION FOR ESSENTIAL AIR SERVICE.

(a) IN GENERAL- Where a determination of highway mileage affects eligibility for essential air service subsidies under title 49, United States Code, the Secretary of Transportation shall consider all commonly traveled highway routes. Where the choice of a route can affect eligibility, the Secretary shall use the route that preserves the subsidy in making that determination.

(b) APPLICATION TO CERTAIN TERMINATIONS- Subsection (a) applies to--

(1) any determination made after the date of enactment of this Act; and

(2) any determination made with respect to any formerly eligible place terminated from the essential air service program in the 2-year period prior to that date.

TITLE III--AVIATION SECURITY

SEC. 301. CAPPS2.

(a) IN GENERAL- The Under Secretary for Border and Transportation Security of the Department of Homeland Security shall not implement, on other than a test basis, the computer assisted passenger prescreening system (commonly known as and in this section referred to as `CAPPS2') until the Under Secretary provides to Congress a certification that--

(1) a procedure is established enabling airline passengers, who are delayed or prohibited from boarding a flight because CAPPS2 determined that they might pose a security threat, to appeal such determination and correct information contained in CAPPS2;

(2) the error rate of the Government and private data bases that will be used to both establish identity and assign a risk level to a passenger under CAPPS2 will not produce a large number of false positives that will result in a significant number of passengers being mistaken as a security threat;

(3) the Under Secretary has demonstrated the efficacy and accuracy of all search tools in CAPPS2 and has demonstrated that CAPPS2 can make an accurate predictive assessment of those passengers who would constitute a security threat;

(4) the Secretary of Homeland Security has established an internal oversight board to oversee and monitor the manner in which CAPPS2 is being implemented;

(5) the Under Secretary has built in sufficient operational safeguards to reduce the opportunities for abuse;

(6) substantial security measures are in place to protect CAPPS2 from unauthorized access by hackers or other intruders;

(7) the Under Secretary has adopted policies establishing effective oversight of the use and operation of the system; and

(8) there are no specific privacy concerns with the technological architecture of the system.

(b) GAO REPORT- Not later than 90 days after the date on which certification is provided under subsection (a), the Comptroller General shall submit a report to the Committees on Appropriations of the House of Representatives and the Senate, the Committee on Transportation and Infrastructure of the House of Representatives, and the Committee on Commerce, Science and Transportation of the Senate that assesses the impact of CAPPS2 on the issues listed in subsection (a) and on privacy and civil liberties. The report shall include any recommendations for practices, procedures, regulations, or legislation to eliminate or minimize adverse effect of CAPPS2 on privacy, discrimination, and other civil liberties.

SEC. 303. REPORT ON PASSENGER PRESCREENING PROGRAM.

(a) IN GENERAL- Within 90 days after the date of enactment of this Act, the Secretary of Homeland Security, after consultation with the Attorney General, shall submit a report in writing to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure on the potential impact of the Transportation Security Administration's proposed Computer Assisted Passenger Prescreening system, commonly known as CAPPS2, on the privacy and civil liberties of United States citizens.

(b) SPECIFIC ISSUES TO BE ADDRESSED- The report shall address the following:

(1) Whether and for what period of time data gathered on individual travelers will be retained, who will have access to such data, and who will make decisions concerning access to such data.

(2) How the Transportation Security Administration will treat the scores assigned to individual travelers to measure the likelihood they may pose a security threat, including how long such scores will be retained and whether and under what circumstances they may be shared with other governmental, nongovernmental, or commercial entities.

(3) The role airlines and outside vendors or contractors will have in implementing and operating the system, and to what extent will they have access, or the means to obtain access, to data, scores, or other information generated by the system.

(4) The safeguards that will be implemented to ensure that data, scores, or other information generated by the system will be used only as officially intended.

(5) The procedures that will be implemented to mitigate the effect of any errors, and what procedural recourse will be available to passengers who believe the system has wrongly barred them from taking flights.

(6) The oversight procedures that will be implemented to ensure that, on an ongoing basis, privacy and civil liberties issues will continue to be considered and addressed with high priority as the system is installed, operated, and updated.

SEC. 304. FLIGHT TRAINING.

(a) IN GENERAL- Section 44939 is amended to read as follows:

`Sec. 44939. Training to operate certain aircraft

`(a) WAITING PERIOD- A person operating as a flight instructor, pilot school, or aviation training center or subject to regulation under this part may provide training in the operation of any aircraft having a maximum certificated takeoff weight of more than 12,500 pounds to an alien (as defined in section 101(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(3))) or to any other individual specified by the Secretary of Homeland Security only if--

`(1) that person has first notified the Secretary that the alien or individual has requested such training and submitted to the Secretary, in such form as the Secretary may prescribe, the following information about the alien or individual:

`(A) full name, including any aliases used by the applicant or variations in spelling of the applicant's name;

`(B) passport and visa information;

`(C) country of citizenship;

`(D) date of birth;

`(E) dates of training; and

`(F) fingerprints collected by, or under the supervision of, a Federal, State, or local law enforcement agency or by another entity approved by the Federal Bureau of Investigation or the Secretary of Homeland Security, including fingerprints taken by United States Government personnel at a United States embassy or consulate; and

`(2) the Secretary has not directed, within 30 days after being notified under paragraph (1), that person not to provide the requested training because the Secretary has determined that the individual presents a risk to aviation or national security.

`(b) INTERRUPTION OF TRAINING- If the Secretary of Homeland Security, more than 30 days after receiving notification under subsection (a) from a person providing training described in subsection (a), determines that the individual presents a risk to aviation or national security, the Secretary shall immediately notify the person providing the training of the determination and that person shall immediately terminate the training.

`(c) NOTIFICATION- A person operating as a flight instructor, pilot school, or aviation training center or subject to regulation under this part may provide training in the operation of any aircraft having a maximum certificated takeoff weight of 12,500 pounds or less to an alien (as defined in section 101(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(3))) or to any other individual specified by the Secretary of Homeland Security only if that person has notified the Secretary that the individual has requested such training and furnished the Secretary with that individual's identification in such form as the Secretary may require.

`(d) EXPEDITED PROCESSING- Not later than 60 days after the date of enactment of this section, the Secretary shall establish a process to ensure that the waiting period under subsection (a) shall not exceed 5 days for an alien (as defined in section 101(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(3))) who--

`(1) holds an airman's certification of a foreign country that is recognized by an agency of the United States, including a military agency, that permits an individual to operate a multi-engine aircraft that has a certificated takeoff weight of more than 12,500 pounds;

`(2) is employed by a foreign air carrier that is certified under part 129 of title 14, Code of Federal Regulations, and that has a security program approved under section 1546 of title 49, Code of Federal Regulations;

`(3) is an individual that has unescorted access to a secured area of an airport designated under section 44936(a)(1)(A)(ii); or

`(4) is an individual that is part of a class of individuals that the Secretary has determined that providing aviation training to presents minimal risk to aviation or national security because of the aviation training already possessed by such class of individuals.

`(e) TRAINING- In subsection (a), the term `training' means training received from an instructor in an aircraft or aircraft simulator and does not include recurrent training, ground training, or demonstration flights for marketing purposes.

`(f) NONAPPLICABILITY TO CERTAIN FOREIGN MILITARY PILOTS- The procedures and processes required by subsections (a) through (d) shall not apply to a foreign military pilot endorsed by the Department of Defense for flight training in the United States and seeking training described in subsection (e) in the United States.

`(g) FEE-

`(1) IN GENERAL- The Secretary of Homeland Security may assess a fee for an investigation under

this section, which may not exceed $100 per individual (exclusive of the cost of transmitting fingerprints collected at overseas facilities) during fiscal years 2003 and 2004. For fiscal year 2005 and thereafter, the Secretary may adjust the maximum amount of the fee to reflect the costs of such an investigation.

`(2) OFFSET- Notwithstanding section 3302 of title 31, any fee collected under this section--

`(A) shall be credited to the account in the Treasury from which the expenses were incurred and shall be available to the Secretary for those expenses; and

`(B) shall remain available until expended.

`(h) INTERAGENCY COOPERATION- The Attorney General, the Director of Central Intelligence, and the Administrator of the Federal Aviation Administration shall cooperate with the Secretary in implementing this section.

`(i) SECURITY AWARENESS TRAINING FOR EMPLOYEES- The Secretary shall require flight schools to conduct a security awareness program for flight school employees to increase their awareness of suspicious circumstances and activities of individuals enrolling in or attending flight school.'.

(b) PROCEDURES-

(1) IN GENERAL- Not later than 60 days after the date of enactment of this Act, the Secretary of Homeland Security shall promulgate an interim final rule to implement section 44939 of title 49, United States Code, as amended by subsection (a).

(2) USE OF OVERSEAS FACILITIES- In order to implement section 44939 of title 49, United States Code, as amended by subsection (a), United States Embassies and Consulates that possess appropriate fingerprint collection equipment and personnel certified to capture fingerprints shall provide fingerprint services to aliens covered by that section if the Secretary requires fingerprints in the administration of that section, and shall transmit the fingerprints to the Secretary or other agency designated by the Secretary. The Attorney General and the Secretary of State shall cooperate with the Secretary of Homeland Security in carrying out this paragraph.

(3) USE OF UNITED STATES FACILITIES- If the Secretary of Homeland Security requires fingerprinting in the administration of section 44939 of title 49, United States Code, the Secretary may designate locations within the United States that will provide fingerprinting services to individuals covered by that section.

(c) EFFECTIVE DATE- The amendment made by subsection (a) takes effect on the effective date of the interim final rule required by subsection (b)(1).

(d) REPORT- Not later than 1 year after the date of enactment of this Act, the Secretary of Homeland Security shall submit to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure a report on the effectiveness of the activities carried out under section 44939 of title 49, United States Code, in reducing risks to aviation security and national security.

SEC. 305. PROHIBITION ON AIR TRAFFIC CONTROL PRIVATIZATION.

(a) IN GENERAL- The Secretary of Transportation may not authorize the transfer to a private entity or to a public entity other than the United States Government of--

(1) the air traffic separation and control functions operated by the Federal Aviation Administration on the date of enactment of this Act; or

(2) the functions related to certification of national airspace systems and services operated by the Federal Aviation Administration on the date of enactment of this Act

(b) Limitations-

(1) CONTRACT TOWERS- Subsection (a) shall not apply to a Federal Aviation Administration air traffic control tower operated under the contract tower program on the date of enactment of this Act or to any expansion of that program under section 47124(b)(3) or 47124(b)(4) of title 49, United States Code.

(2) SOFTWARE- Subsection (a)(2) shall not apply to the development or modification of software.

(c) Flight Service Stations-

(1) IN GENERAL- Within 1 year after the date of enactment of this Act, the Secretary shall transmit to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure a report on the Federal Aviation Administration's plan to revamp the flight service station program. The report shall include--

(A) an analysis of the impact of the plan on costs, effectiveness, and the need for redundancies in the program;

(B) a comparison of the existing costs of the program with alternatives;

(C) workforce needs (including any necessary transition period); and

(D) space needs.

(2) LIMITATION- The Secretary of Transportation may not authorize the transfer to a private entity or to a public entity other than the United States Government of the flight service station program or any component thereof until the report required by paragraph (1) has been transmitted to the Congress and the Congress has authorized any such proposed transfer.

TITLE IV--AVIATION RESEARCH

SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

Section 48102(a) of title 49, United States Code, is amended--

(1) by striking `to carry out sections 44504' and inserting `for conducting civil aviation research and development under sections 44504';

(2) by striking `and' at the end of paragraph (7);

(3) by striking the period at the end of paragraph (8) and inserting a semicolon; and

(4) by adding at the end the following:

`(9) for the period beginning on October 1, 2003, and ending on March 31, 2004, $173,158,500, including--

`(A) $32,500,000 for Improving Aviation Safety;

`(B) $12,000,000 for Weather Safety Research;

`(C) $13,750,000 for Human Factors and Aeromedical Research;

`(D) $15,000,000 for Environmental Research and Development, of which $10,000,000 shall be for research activities related to reducing community exposure to civilian aircraft noise or emissions;

`(E) $3,500,000 for Research Mission Support;

`(F) $750,000 for carrying out subsection (h) of this section;

`(G) $21,400,000 for Advanced Technology Development and Prototyping;

`(H) $15,150,000 for Safe Flight 21;

`(I) $45,400,000 for the Center for Advanced Aviation System Development;

`(J) $4,833,500 for Airports Technology-Safety; and

`(K) $3,875,000 for Airports Technology-Efficiency.'.

TITLE V--EXTENSION OF AIRPORT AND AIRWAY TRUST FUND EXPENDITURE AUTHORITY

SEC. 501. EXTENSION OF EXPENDITURE AUTHORITY.

(a) IN GENERAL- Paragraph (1) of section 9502(d) of the Internal Revenue Code of 1986 (relating to expenditures from Airport and Airway Trust Fund) is amended--

(1) by striking `October 1, 2003,' and inserting `October 1, 2004,', and

(2) by inserting before the semicolon at the end of subparagraph (A) the following: `or the Federal Aviation Administration Reauthorization Act of 2003'.

(b) CONFORMING AMENDMENT- Paragraph (2) of section 9502(f) of the Internal Revenue Code of 1986 is amended by striking `October 1, 2003' and inserting `October 1, 2004'.

SEC. 502. TECHNICAL CORRECTION TO FLIGHT SEGMENT.

(a) SPECIAL RULE- Section 4261(e)(4) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

`(D) SPECIAL RULE FOR AMOUNTS PAID FOR DOMESTIC SEGMENTS BEGINNING AFTER 2002- If an amount is paid during a calendar year for a domestic segment beginning in a later calendar year, then the rate of tax under subsection (b) on such amount shall be the rate in effect for the calendar year in which such amount is paid.'.

(b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect as if included in the provisions of the Taxpayer Relief Act of 1997 to which they relate..AEMD23AF

Calendar No. 282

To reauthorize Federal Aviation Administration Programs for the period beginning on October 1, 2003, and ending on March 31, 2004, and for other purposes.

September 17, 2003

END