H.R. 2997 — what changed

changed “(1) $3,424,000,000 $3,597,000,000 for fiscal year 2018;

changed “(2) $3,499,000,000 $3,666,000,000 for fiscal year 2019;

changed “(3) $3,576,000,000 $3,746,000,000 for fiscal year 2020;

changed “(4) $3,655,000,000 $3,829,000,000 for fiscal year 2021;

changed “(5) $3,735,000,000 $3,912,000,000 for fiscal year 2022; and

changed “(6) $3,817,000,000 $3,998,000,000 for fiscal year 2023.”

added “(29) “lactation area” means a room or other location in a commercial service airport that—

removed “(10) “lactation area” means a room or other location in a commercial service airport that—

“(A) provides a location for members of the public to express breast milk that is shielded from view and free from intrusion from the public;

“(B) has a door that can be locked;

“(C) includes a place to sit, a table or other flat surface, and an electrical outlet;

“(D) is readily accessible to and usable by individuals with disabilities, including individuals who use wheelchairs; and

“(E) is not located in a restroom.”

“(22) with respect to a medium or large hub airport, the airport owner or operator will maintain a lactation area in each passenger terminal building of the airport in the sterile area (as defined in section 1540.5 of title 49, Code of Federal Regulations) of the building.”

“(3) Lactation areas—In addition to the projects described in paragraph (1), the Secretary may approve a project for terminal development for the construction or installation of a lactation area at a commercial service airport.”

“(i) for the 1-year period after such determination is made; or

changed “(ii) if an appeal of such determination is requested, for the 1-year period described in subsection (d)(4)(D).”(d)(4)(D)”

“(E) Funding—Amounts appropriated pursuant to section 106(k)(1) may be used to carry out this paragraph.”

“(B) Eligibility

“(i) Before date of transfer—Before the date of transfer (as defined in section 90101(a)), an airport sponsor shall be eligible for a grant under this paragraph only if—

“(I)

“(aa) the sponsor is a participant in the Federal Aviation Administration contract tower program established under subsection (a) and continued under paragraph (1) or the pilot program established under paragraph (3); or

“(bb) construction of a nonapproach control tower would qualify the sponsor to be eligible to participate in such program;

“(II) the sponsor certifies that it will pay not less than 10 percent of the cost of the activities for which the sponsor is receiving assistance under this paragraph;

“(III) the Secretary affirmatively accepts the proposed contract tower into a contract tower program under this section and certifies that the Secretary will seek future appropriations to pay the Federal Aviation Administration’s cost of the contract to operate the tower to be constructed under this paragraph;

“(IV) the sponsor certifies that it will pay its share of the cost of the contract to operate the tower to be constructed under this paragraph; and

“(V) in the case of a tower to be constructed under this paragraph from amounts made available under section 47114(d)(2) or 47114(d)(3)(B), the Secretary certifies that—

“(aa) the Federal Aviation Administration has consulted the State within the borders of which the tower is to be constructed and the State supports the construction of the tower as part of its State airport capital plan; and

“(bb) the selection of the tower for funding is based on objective criteria.

“(ii) On and after date of transfer—On and after the date of transfer (as defined in section 90101(a)), an airport sponsor shall be eligible for a grant under this paragraph only if—

“(I) the Secretary determines that the tower to be constructed at the sponsor’s airport using the amounts of the grant will be operated pursuant to an agreement entered into by the American Air Navigation Services Corporation and an entity pursuant to section 90302(c)(3);

“(II) the sponsor certifies that it will pay not less than 10 percent of the cost of the activities for which the sponsor is receiving assistance under this paragraph; and

“(III) in the case of a tower to be constructed under this paragraph from amounts made available under section 47114(d)(2) or 47114(d)(3)(B), the Secretary certifies that—

“(aa) the Federal Aviation Administration has consulted the State within the borders of which the tower is to be constructed and the State supports the construction of the tower as part of its State airport capital plan; and

“(bb) the selection of the tower for funding is based on objective criteria.”

“(G) Benefit-to-cost calculation—Not later than 90 days after receiving an application to the Contract Tower Program, the Secretary shall calculate a benefit-to-cost ratio (as described in subsection (d)) for the applicable air traffic control tower for purposes of selecting towers for participation in the Contract Tower Program.”

“(1) Before date of transfer—Before the date of transfer (as defined in section 90101(a)), the Secretary”

“(2) On and after date of transfer—On and after the date of transfer (as defined in section 90101(a)), oversight of air traffic control towers that receive funding under this section shall be carried out in accordance with performance-based regulations and minimum safety standards prescribed under section 90501.”

“(d) Criteria To evaluate participants

“(1) Timing of evaluations

“(A) Towers participating in cost-share program—In the case of an air traffic control tower that is operated under the program established under subsection (b)(3), the Secretary shall annually calculate a benefit-to-cost ratio with respect to the tower.

“(B) Towers participating in contract tower program—In the case of an air traffic control tower that is operated under the program established under subsection (a) and continued under subsection (b)(1), the Secretary shall not calculate a benefit-to-cost ratio after the date of enactment of this subsection with respect to the tower unless the Secretary determines that the annual aircraft traffic at the airport where the tower is located has decreased—

“(i) by more than 25 percent from the previous year; or

“(ii) by more than 60 percent cumulatively in the preceding 3-year period.

“(2) Costs to be considered—In establishing a benefit-to-cost ratio under this section with respect to an air traffic control tower, the Secretary shall consider only the following costs:

“(A) The Federal Aviation Administration’s actual cost of wages and benefits of personnel working at the tower.

“(B) The Federal Aviation Administration’s actual telecommunications costs directly associated with the tower.

“(C) The Federal Aviation Administration’s costs of purchasing and installing any air traffic control equipment that would not have been purchased or installed except for the operation of the tower.

“(D) The Federal Aviation Administration’s actual travel costs associated with maintaining air traffic control equipment that is owned by the Administration and would not be maintained except for the operation of the tower.

“(3) Other criteria to be considered—In establishing a benefit-to-cost ratio under this section with respect to an air traffic control tower, the Secretary shall add a 10 percentage point margin of error to the benefit-to-cost ratio determination to acknowledge and account for the direct and indirect economic and other benefits that are not included in the criteria the Secretary used in calculating that ratio.

“(4) Review of cost-benefit determinations—In issuing a benefit-to-cost ratio determination under this section with respect to an air traffic control tower located at an airport, the Secretary shall implement the following procedures:

“(A) The Secretary shall provide the airport (or the State or local government having jurisdiction over the airport) at least 90 days following the date of receipt of the determination to submit to the Secretary a request for an appeal of the determination, together with updated or additional data in support of the appeal.

“(B) Upon receipt of a request for an appeal submitted pursuant to subparagraph (A), the Secretary shall—

“(i) transmit to the Administrator of the Federal Aviation Administration any updated or additional data submitted in support of the appeal; and

“(ii) provide the Administrator not more than 90 days to review the data and provide a response to the Secretary based on the review.

“(C) After receiving a response from the Administrator pursuant to subparagraph (B), the Secretary shall—

“(i) provide the airport, State, or local government that requested the appeal at least 30 days to review the response; and

“(ii) withhold from taking further action in connection with the appeal during that 30-day period.

“(D) If, after completion of the appeal procedures with respect to the determination, the Secretary requires the tower to transition into the program established under subsection (b)(3), the Secretary shall not require a cost-share payment from the airport, State, or local government for 1 year following the last day of the 30-day period described in subparagraph (C).”

“XI American Air Navigation Services Corporation

“901 General Provisions

“90101. Definitions

“(a) In general—In this subtitle, the following definitions apply:

“(1) Administrator—The term “Administrator” means the Administrator of the FAA.

“(2) Air traffic services—The term “air traffic services” means services—

“(A) used for the monitoring, directing, control, and guidance of aircraft or flows of aircraft and for the safe conduct of flight, including communications, navigation, and surveillance services and provision of aeronautical information; and

“(B) provided directly, or contracted for, by the FAA before the date of transfer.

“(3) Air traffic services user—The term “air traffic services user” means any individual or entity using air traffic services provided by the Corporation within United States airspace or international airspace delegated to the United States.

“(4) Board—The term “Board” means the Board of Directors of the Corporation.

“(5) CEO—The term “CEO” means the Chief Executive Officer of the Corporation.

“(6) Charge; fee—The terms “charge” and “fee” mean any rate, charge, fee, or other service charge for the use of air traffic services.

“(7) Corporation—The term “Corporation” means the American Air Navigation Services Corporation established under this subtitle.

“(8) Date of transfer—The term “date of transfer” means the date on which the Corporation assumes operational control of air traffic services from the FAA pursuant to this subtitle, which shall be October 1, 2020.

“(9) Director—The term “Director” means a Director of the Board.

“(10) FAA—The term “FAA” means the Federal Aviation Administration.

“(11) Interim CEO—The term “Interim CEO” means the Interim Chief Executive Officer of the Corporation.

“(12) Regional air carrier—The term “regional air carrier” means an air carrier operating under part 121 of title 14, Code of Federal Regulations, that—

“(A) exclusively or primarily operates aircraft with a seating capacity of 76 seats or fewer; and

“(B) is not majority owned or controlled by any other air carrier or air carrier holding company.

“(13) Secretary—The term “Secretary” means the Secretary of Transportation.

“(b) Applicability of other definitions—Except with respect to the terms specifically defined in this subtitle, the definitions contained in section 40102(a) shall apply to the terms used in this subtitle.

“903 Establishment of Air Traffic Services Provider; Transfer of Air Traffic Services

“90301. Establishment of Corporation

“(a) Federal charter—There is established a federally chartered, not-for-profit corporation to be known as the “American Air Navigation Services Corporation”, which shall be incorporated in a State of its choosing.

“(b) Corporation name

“(1) In general—The Corporation may conduct its business and affairs, and otherwise hold itself out, as the “American Air Navigation Services Corporation” in any jurisdiction.

“(2) Exclusive right—The Corporation shall have the exclusive right to use the name “American Air Navigation Services Corporation”.

“(3) Alternative name—The Corporation may do business under a name other than the “American Air Navigation Services Corporation” at its choosing.

“90302. Transfer of air traffic services

“(a) In general—The Secretary shall transfer operational control over air traffic services within United States airspace and international airspace delegated to the United States to the Corporation on the date of transfer in a systematic and orderly manner that ensures continuity of safe air traffic services.

“(b) Management and operation of air traffic services—Subject to section 90501, including the performance-based regulations and minimum safety standards prescribed under that section, the Corporation may establish and carry out plans for the management and operation of air traffic services within United States airspace and international airspace delegated to the United States.

“(c) Entities authorized To provide air traffic services after date of transfer—After the date of transfer, no entity, other than the Corporation, is authorized or permitted to provide air traffic services within United States airspace or international airspace delegated to the United States, except for—

“(1) the Department of Defense, as authorized by chapter 909;

“(2) entities to which the United States has delegated certain air traffic services responsibilities;

“(3) entities with which the Corporation has contracted for the provision of air traffic services; and

“(4) entities authorized to operate an unmanned aircraft traffic management system or service pursuant to section 45506 or 45507.

“90303. Role of Secretary in transferring air traffic services to Corporation

“(a) In general—As appropriate, and except as otherwise provided, the Secretary shall manage and execute the transfer of operational control over air traffic services pursuant to section 90302(a) and any related transition processes and procedures.

“(b) Nondelegation—Except as otherwise provided, the Secretary may not delegate any of the authority or requirements under this subtitle to the Administrator.

“90304. Status and applicable laws

“(a) Non-Federal entity—The Corporation is not a department, agency, or instrumentality of the United States Government, and is not subject to title 31.

“(b) Liability—The United States Government shall not be liable for the actions or inactions of the Corporation.

“(c) Not-For-Profit corporation—The Corporation shall maintain its status as a not-for-profit corporation exempt from taxation under the Internal Revenue Code of 1986.

“(d) No Federal guarantee—Any debt assumed by the Corporation shall not have an implied or explicit Federal guarantee.

“90305. Nomination Panels for Board

“(a) In general—The Nomination Panels described in subsection (b) shall be responsible for nominating individuals to serve as Directors pursuant to section 90306.

“(b) Nomination Panels—The Nomination Panels shall be as follows:

“(1) Passenger Air Carrier Nomination Panel—A Passenger Air Carrier Nomination Panel composed of passenger air carrier representatives, with each air carrier with more than 30,000,000 annual passenger enplanements designating 1 representative to the Panel.

“(2) Cargo Air Carrier Nomination Panel—A Cargo Air Carrier Nomination Panel composed of cargo air carrier representatives, with each all-cargo air carrier with more than 1,000,000 total annual enplaned cargo revenue tons designating 1 representative to the Panel.

“(3) Regional Air Carrier Nomination Panel—A Regional Air Carrier Nomination Panel composed of regional air carrier representatives, with each of the 3 largest regional air carriers, as measured by annual passenger enplanements, designating 1 representative to the Panel.

“(4) General Aviation Nomination Panel—A General Aviation Nomination Panel composed of 6 representatives designated by the principal organization representing noncommercial owners and recreational operators of general aviation aircraft.

“(5) Business Aviation Nomination Panel—A Business Aviation Nomination Panel composed of—

“(A) 2 representatives designated by the principal organization representing owners, operators, and users of general aviation aircraft used exclusively in furtherance of business enterprises;

“(B) 2 representatives designated by the principal organization representing aviation-related businesses, including fixed-base operators; and

“(C) 2 representatives designated by the principal organization representing aerospace manufacturers of general aviation aircraft and equipment.

“(6) Air Traffic Controller Nomination Panel—An Air Traffic Controller Nomination Panel composed of 6 representatives designated by the largest organization engaged in collective bargaining on behalf of air traffic controllers employed by the Corporation.

“(7) Airport Nomination Panel—An Airport Nomination Panel composed of—

“(A) 3 representatives designated by the principal organization representing commercial service airports; and

“(B) 3 representatives designated by the principal organization representing airport executives.

“(8) Commercial Pilot Nomination Panel—A Commercial Pilot Nomination Panel composed of commercial pilot representatives, with each organization engaged in collective bargaining on behalf of air carrier pilots with more than 5,000 members designating 1 member to the Panel.

“(c) Determination of entities

“(1) Before date of transfer—Before the date of transfer, and not later than 30 days after the date of enactment of this subtitle, the Secretary shall determine the entities referred to in subsection (b).

“(2) After date of transfer—On and after the date of transfer, the Board shall determine the entities referred to in subsection (b), in accordance with the bylaws of the Corporation.

“(3) Statistics—In determining annual statistics for purposes of this subsection, the Secretary and the Board shall utilize data published by the Department of Transportation for the most recent calendar year.

“(4) Limitations

“(A) Single designation—No entity determined under this subsection may designate a representative to more than 1 Nomination Panel.

“(B) Carriers owned or controlled by same holding company—If 2 or more air carriers determined under this subsection are owned or controlled by the same holding company, only 1 of those air carriers may designate a representative to a Nomination Panel.

“(d) Terms—An individual on a Nomination Panel shall serve at the pleasure of the entity that the individual is representing.

“(e) Qualifications—Only an individual who is a citizen of the United States may be designated to a Nomination Panel.

“(f) Prohibitions—An individual may not serve on a Nomination Panel if the individual is—

“(1) an officer or employee of the Corporation;

“(2) a Member of Congress or an elected official serving in a State, local, or Tribal government; or

“(3) an officer or employee of the Federal Government or any State, local, or Tribal government.

“(g) Largest organization engaged in collective bargaining on behalf of air traffic controllers employed by the Corporation defined—Before the date of transfer, in this section, the term “largest organization engaged in collective bargaining on behalf of air traffic controllers employed by the Corporation” means the largest organization engaged in collective bargaining on behalf of air traffic controllers employed by the FAA.

“90306. Board of Directors

“(a) Authority—The powers of the Corporation shall be vested in a Board of Directors that governs the Corporation.

“(b) Composition of Board—The Board shall be composed of the following Directors:

“(1) The CEO.

“(2) 2 Directors appointed by the Secretary.

“(3) 1 Director nominated by the Passenger Air Carrier Nomination Panel.

“(4) 1 Director nominated by the Cargo Air Carrier Nomination Panel.

“(5) 1 Director nominated by the Regional Air Carrier Nomination Panel.

“(6) 1 Director nominated by the General Aviation Nomination Panel.

“(7) 1 Director nominated by the Business Aviation Nomination Panel.

“(8) 1 Director nominated by the Air Traffic Controller Nomination Panel.

“(9) 1 Director nominated by the Airport Nomination Panel.

“(10) 1 Director nominated by the Commercial Pilot Nomination Panel.

“(11) 2 Directors nominated and selected by the other Directors.

“(c) Nominations and appointments

“(1) Prior to date of transfer

“(A) Submission of nomination lists—Before the date of transfer, and not later than 60 days after the date of enactment of this subtitle, each Nomination Panel shall submit to the Secretary a list, chosen by consensus, of 4 individuals nominated to be Directors.

“(B) Appointment and selection—Not later than 30 days after the date on which the last nomination list is submitted under subparagraph (A), the Secretary shall—

“(i) appoint 2 individuals to be Directors under subsection (b)(2); and

“(ii) select, pursuant to subsection (b), the appropriate number of individuals to be Directors from each nomination list.

“(C) Resubmission—A Nomination Panel shall resubmit a list submitted under subparagraph (A), not later than 15 days after notification by the Secretary of the need to resubmit the list, if the Secretary determines that an individual on the list is—

“(i) not qualified to serve as a Director under section 90307; or

“(ii) otherwise not fit to serve as a Director.

“(D) At-large Directors—Not later than 30 days after the Secretary appoints and selects the Directors pursuant to subparagraph (B), the Board shall nominate and select the additional Directors under subsection (b)(11) by a two-thirds vote.

“(2) After date of transfer

“(A) Nomination—As appropriate, a Nomination Panel shall submit to the Board a list, chosen by consensus, of 4 individuals nominated to be Directors.

“(B) Selection—The Board shall select, pursuant to subsection (b), the appropriate number of individuals to be Directors from a list submitted by a Nomination Panel.

“(C) Resubmission—A Nomination Panel shall resubmit a list submitted under subparagraph (A), not later than 15 days after notification by the Board of the need to resubmit the list, if the Board determines that more than 1 individual on the list is—

“(i) not qualified to serve as a Director under section 90307; or

“(ii) otherwise not fit to serve as a Director.

“(D) At-large Directors—The Board shall nominate and select Directors under subsection (b)(11) in accordance with the bylaws of the Corporation.

“(E) Appointed Directors—None of the Directors appointed by the Secretary under subsection (b)(2) shall be subject to approval by the Board.

“(d) Chairperson—The Chairperson of the Board shall—

“(1) be selected from among the Directors (other than the CEO) by a majority vote of the Directors; and

“(2) subject to subsection (e), serve until replaced by a majority vote of the Directors.

“(e) Terms

“(1) Initial terms—The term of each Director appointed, or nominated and selected, before the date of transfer (other than the CEO) shall expire on the date that is 2 years after the date of transfer.

changed “(2) Subsequent terms—The term of each Director appointed, or nominated and selected, on or after the date of transfer (other than the CEO) shall be 5 4 years, except as provided by paragraph (3).

“(3) Staggering—The Board shall stagger the duration of the terms of the initial Directors appointed, or nominated and selected, after the date of transfer to promote the stability of the Board.

added “(4) Term limit—Except as provided by subsection (f)(3), a Director may not serve on the Board for more than 8 years.

“(f) Vacancies

“(1) Before date of transfer—Before the date of transfer, a vacancy on the Board shall be filled in the manner in which the original appointment or selection was made.

“(2) After date of transfer—After the date of transfer, a vacancy on the Board shall be filled in the manner in which the original appointment was made (in the case of Directors appointed under subsection (b)(2)) or in the manner described under subsection (c)(2) (in the case of Directors nominated by Nomination Panels or the Board).

“(3) Service until successor takes office—A Director may serve after the expiration of the Director’s term until a successor has been appointed or nominated and selected.

“(g) Meetings and quorum

“(1) Meetings

“(A) In general—The Board shall meet at the call of the Chairperson (or as otherwise provided in the bylaws) and, at a minimum, on a quarterly basis.

“(B) Initial meeting—Not later than 90 days after the date of enactment of this subtitle, the Board shall hold its initial meeting.

“(C) In-person meeting—At least 1 meeting of the Board each year shall be conducted in person.

“(2) Quorum—A quorum of the Board, consisting of a majority of the Directors then in office, shall be required to conduct any business of the Board.

“(3) Approval of Board actions—Except as otherwise provided, the threshold for approving Board actions shall be as set forth in the bylaws.

“(h) Removal of Directors—A Director may be removed in accordance with section 90307(c) and the bylaws of the Corporation.

“90307. Fiduciary duties and qualifications of Directors

“(a) Fiduciary duties—The fiduciary duties of a Director shall be solely and exclusively to the Corporation.

“(b) Qualifications

“(1) In general—Only a citizen of the United States may be appointed or nominated as a Director.

“(2) Prohibitions—An individual may not serve as a Director if the individual—

“(A) is an officer, agent, or employee of the Corporation (other than the CEO);

“(B) is, or has been within the preceding 2 years, a Member of Congress;

“(C) is an elected official serving in a State, local, or Tribal government;

“(D) is an officer or employee of the Federal Government or any State, local, or Tribal government;

“(E) is a director, officer, trustee, agent, or employee of—

“(i) a bargaining agent that represents employees of the Corporation;

“(ii) an entity that has a material interest as a supplier, client, or user of the Corporation’s services; or

“(iii) any of the entities determined under section 90305(c);

“(F) receives any form of compensation or material benefit from an entity that has a material interest as a supplier, client, or user of the Corporation’s services, excluding compensation from a defined benefit plan resulting from the individual’s past employment; or

“(G) has or holds any other fiduciary duty, legal obligation, office, employed position, or material interest that would prevent the individual from satisfying the requirements of subsection (a) under the applicable laws of the State in which the Corporation is incorporated.

“(3) Exception—Subparagraphs (C) and (D) of paragraph (2) shall not apply to an individual solely because the individual is an elected member of a school board or is employed by an institution of higher education (as defined in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001)).

“(c) Breach of fiduciary duty to Corporation

“(1) In general—The Board shall remove any Director who breaches a fiduciary duty to the Corporation—

“(A) pursuant to procedures to be established in the bylaws of the Corporation; and

“(B) not later than 30 days after determining that a breach has occurred.

“(2) Limited private right of action—The Corporation shall have the exclusive right to seek injunctive or monetary relief (or both) against a Director or former Director for a breach of a fiduciary duty to the Corporation.

“(d) Prohibition on indemnification and certain insurance—Notwithstanding section 90312 or any other provision of law, the Corporation shall neither indemnify nor procure insurance to indemnify any Director for liability relating to a breach of a fiduciary duty to the Corporation.

“90308. Bylaws and duties

“(a) In general—The Board shall adopt and amend the bylaws of the Corporation.

“(b) Bylaws—The bylaws of the Corporation shall include, at a minimum—

“(1) the duties and responsibilities of the Board (including those described in subsection (c)), officers, Advisory Board, and committees of the Corporation; and

“(2) the operational procedures of the Corporation.

“(c) Duties and responsibilities of Board—The Board shall be responsible for actions of the Corporation, including—

“(1) adoption of an annual budget;

“(2) approval of a strategic plan, including updates thereto, and other plans supporting the strategy laid out in the strategic plan;

removed “(3) authorization of any form or instrument of indebtedness, including loans and bond issues;

changed “(4) assessment, modification, and collection “(3) adoption of charges and fees for air traffic services in accordance with the standards described in section 90313;an annual action plan;

changed “(5) hiring and supervision “(4) authorization of the CEO;any form or instrument of indebtedness, including loans and bond issues;

changed “(6) establishment “(5) assessment, modification, and maintenance collection of an appropriately funded reserve fund;charges and fees for air traffic services in accordance with the standards described in section 90313;

changed “(7) adoption of a code of conduct and code of ethics for Directors, officers, agents, “(6) hiring and employees supervision of the Corporation;CEO;

changed “(8) “(7) establishment of a process for ensuring that the fiduciary duties of a Director are solely and exclusively to the Corporation;maintenance of an appropriately funded reserve fund;

changed “(9) establishment “(8) adoption of a process for the removal code of a Director, including the removal conduct and code of a Director ethics for breach Directors, officers, agents, and employees of a fiduciary duty to the Corporation; andCorporation;

changed “(10) adoption “(9) establishment of a process for filling vacancies on ensuring that the Board.fiduciary duties of a Director are solely and exclusively to the Corporation;

added “(10) establishment of a process for the removal of a Director, including the removal of a Director for breach of a fiduciary duty to the Corporation; and

added “(11) adoption of a process for filling vacancies on the Board.

“90309. Committees of Board; independent auditors

“(a) Committees of Board—The Board shall establish and maintain a Safety Committee, a Compensation Committee, a Technology Committee, and such other committees as the Board determines are necessary or appropriate to carry out the responsibilities of the Board effectively. Such committees shall be composed solely of Directors.

“(b) Independent auditors—The Board shall retain independent auditors to conduct annual audits of the Corporation’s financial statements and internal controls.

“90310. Advisory Board

“(a) Establishment—There shall be an Advisory Board of the Corporation.

“(b) Duties—The Advisory Board—

“(1) shall conduct such activities as the Board determines appropriate;

“(2) shall submit to the Board recommendations for Directors to be nominated and selected under section 90306(b)(11); and

“(3) may, on its own initiative, study, report, and make recommendations to the Board on matters relating to the Corporation’s provision of air traffic services and associated safety considerations.

“(c) Membership

“(1) Number—The Advisory Board shall consist of not more than 15 individuals, who are citizens of the United States, representing interested entities.

“(2) Representatives—The members of the Advisory Board shall include, at a minimum, representatives of the following:

“(A) Air carriers.

“(B) General aviation.

“(C) Business aviation.

“(D) Commercial service airports.

“(E) Operators and manufacturers of commercial unmanned aircraft systems.

“(F) Appropriate labor organizations.

“(G) The Department of Defense.

added “(H) Small communities, including at least 1 community primarily served by a nonhub airport.

removed “(H) Small communities.

“(d) Structure; terms—The membership and structure of the Advisory Board, including the duration that individuals may serve on the Advisory Board, shall be determined by the Board in accordance with the bylaws of the Corporation.

“90311. Officers and their responsibilities

“(a) Chief Executive Officer

“(1) Hiring

“(A) In general—The Corporation shall have a Chief Executive Officer, who shall be hired by the Board to manage the Corporation.

“(B) Qualifications—The CEO shall be an individual who—

“(i) is a citizen of the United States;

“(ii) satisfies the qualifications to serve as a Director under section 90307; and

“(iii) by reason of professional background and experience, is especially qualified to manage the Corporation.

“(2) Duties—The CEO shall—

“(A) be responsible for the management and direction of the Corporation, including its officers and employees, and for the exercise of all powers and responsibilities of the Corporation;

“(B) establish Corporation offices and define the responsibilities and duties of the offices, with full authority to organize the Corporation as required; and

“(C) designate an officer of the Corporation who is vested with the authority to act in the capacity of the CEO if the CEO is absent or incapacitated.

“(3) Scope of authority

“(A) In general—The CEO shall be subject to the policy guidance of the Board, report to the Board, and serve at the pleasure of the Board.

“(B) Authority of Board—The Board may modify or revoke actions of the CEO pursuant to procedures set forth in the bylaws of the Corporation.

“(b) Other officers and employees

“(1) In general—The CEO shall appoint such other officers and employees of the Corporation as the CEO determines appropriate.

“(2) Chief operating officer; chief financial officer—An appointment of an individual as chief operating officer or chief financial officer by the CEO shall be subject to the approval of the Board.

“(3) Delegation of functions—The CEO may delegate to the other officers and employees of the Corporation any of the functions of the Corporation.

“(4) Compensation—Compensation for the CEO, chief operating officer, and chief financial officer shall be set by the Board.

“(c) Interim CEO

“(1) Hiring—Not later than 60 days after the date of the Secretary’s appointment and selection of Directors under section 90306(c)(1)(B), the Board shall hire an Interim Chief Executive Officer who meets the qualifications specified in subsection (a)(1)(B).

“(2) Authority and term

“(A) Authority—The Interim CEO shall—

“(i) exercise the same authority as the CEO, including serving on the Board;

“(ii) carry out the same duties as the CEO; and

“(iii) be subject to the same prohibitions and limitations as the CEO.

“(B) Term—The Interim CEO shall serve until the Board hires a CEO.

“(3) Statutory construction—Nothing in this subsection may be construed to restrict the ability of the Board to hire the individual serving as the Interim CEO to be the CEO.

“90312. Authority of Corporation

“(a) General authority—Except as otherwise provided in this subtitle, the Corporation—

“(1) shall have perpetual succession in its corporate name unless dissolved by law;

“(2) may adopt and use a corporate seal;

“(3) may own, lease, use, improve, and dispose of such property as the Corporation considers necessary to carry out the purposes of the Corporation;

“(4) may contract with other parties;

“(5) may sue or be sued;

“(6) may be held liable under civil and criminal law;

“(7) may indemnify the Directors, including the Interim CEO or CEO, and other officers, agents, and employees of the Corporation; and

“(8) shall have such other corporate powers as are necessary or appropriate to carry out the purposes of this subtitle and of the Corporation.

“(b) Limitations

“(1) Business activities—The Corporation may only engage in business activities that are—

“(A) related to carrying out air traffic services; or

“(B) ancillary or incidental to carrying out such services.

“(2) Equity shares—The Corporation may not issue or sell equity shares in the Corporation.

“90313. Charges and fees for air traffic services

“(a) Assessment and collection of charges and fees—Beginning on the date of transfer, and subject to this section and section 90502, the Corporation may assess and collect charges and fees from air traffic services users for air traffic services provided by the Corporation in United States airspace or international airspace delegated to the United States.

“(b) Board approval of charges and fees—The Board shall—

“(1) approve a proposal for—

“(A) an initial schedule of charges and fees pursuant to subsection (g); and

“(B) any change in the charges or fees;

“(2) provide air traffic services users and other interested persons notice of a proposal approved under paragraph (1) in a manner and form prescribed by the Secretary; and

“(3) submit a proposal approved under paragraph (1) (other than a proposal to decrease a charge or fee) to the Secretary 90 days prior to the effective date of the proposal in a manner and form prescribed by the Secretary.

“(c) Secretarial review

“(1) Public comment—Upon receiving a proposal from the Corporation under subsection (b)(3), the Secretary shall solicit public comments on the proposal for a 30-day period.

“(2) Secretarial approval

“(A) In general—Not later than 15 days after the last day of the 30-day public comment period, the Secretary shall—

“(i) approve the proposal upon determining that the proposal complies with the standards in subsection (d); or

“(ii) disapprove the proposal upon determining that the proposal does not comply with the standards in subsection (d).

“(B) Effectiveness of proposal—If the Secretary does not issue a timely decision pursuant to subparagraph (A), the proposal shall be deemed approved.

“(d) Standards—The Secretary shall apply the following standards in reviewing a proposal from the Corporation under subsection (c):

“(1) The amount or type of charges and fees paid by an air traffic services user may not—

“(A) be determinant of the air traffic services provided to the user; or

“(B) adversely impact the ability of the user to use or access any part of the national airspace system.

“(2) Charges and fees shall be consistent with the document titled “ICAO’s Policies on Charges for Airports and Air Navigation Services”, Ninth Edition, 2012.

“(3) Charges and fees may not be discriminatory.

“(4) Charges and fees shall be consistent with United States international obligations.

“(5) Certain categories of air traffic services users may be charged on a flat fee basis so long as the charge or fee is otherwise consistent with this subsection.

“(6) Charges and fees may not be imposed for air traffic services provided with respect to operations of aircraft that qualify as public aircraft under sections 40102(a) and 40125.

“(7) Charges and fees may not be imposed for air traffic services provided with respect to aircraft operations conducted pursuant to part 91, 133, 135, 136, or 137 of title 14, Code of Federal Regulations.

“(8) Charges and fees may not be structured such that air traffic services users have incentives to operate in ways that diminish safety to avoid the charges and fees.

“(9) Charges and fees, based on reasonable and financially sound projections, may not generate revenues exceeding the Corporation’s current and anticipated financial requirements in relation to the provision of air traffic services.

“(e) Corporation’s financial requirements—In determining whether a proposal received from the Corporation under subsection (b) would generate revenues in compliance with subsection (d)(9), the Secretary shall consider costs and other liabilities of the Corporation, including—

“(1) costs incurred before the date of transfer;

“(2) operations and maintenance costs;

“(3) management and administrative costs;

“(4) depreciation costs;

“(5) interest costs and other expenses related to debt servicing;

“(6) cash reserves or other requirements needed to maintain credit ratings or comply with debt covenants; and

“(7) any tax liability.

“(f) Payment of charges and fees

“(1) In general—An air traffic services user shall pay a charge or fee assessed by the Corporation under subsection (a) for services rendered and any interest and penalties assessed under paragraph (2).

“(2) Late payment or nonpayment—The Corporation may assess and collect interest and penalties for late payment or nonpayment of a charge or fee assessed by the Corporation under subsection (a).

“(3) Private right of action—The Corporation may file suit in any district court of the United States having jurisdiction over the parties, without respect to the amount in controversy and without regard to the citizenship of the parties, to enforce this subsection not later than 2 years after the date on which a claim accrues. A claim accrues, under this paragraph, upon the rendering of the relevant air traffic services by the Corporation.

“(g) Initial schedule—Notwithstanding subsection (b)(3), the Corporation shall propose an initial schedule of charges and fees at least 180 days before the date of transfer.

“(h) Aircraft operation defined—In this section, the term “aircraft operation” means the movement of an aircraft beginning with the take-off of the aircraft and ending with the landing of the aircraft.

“90314. Preemption of authority over air traffic services

“(a) State defined—In this section, the term “State” means a State, the District of Columbia, and a territory or possession of the United States.

“(b) Preemption—A State, political subdivision of a State, or political authority of at least 2 States may not enact or enforce a law, regulation, or other provision having the force and effect of law related to air traffic services.

“(c) Airport owner or operator—Subsection (b) may not be construed to limit a State, political subdivision of a State, or political authority of at least 2 States that owns or operates a landing area from carrying out its proprietary powers and rights over the landing area.

“90315. Actions by and against Corporation

“(a) Jurisdiction for legal actions generally

“(1) Jurisdiction of United States district courts—The United States district courts shall have original jurisdiction over all actions brought by or against the Corporation, except as otherwise provided in this subtitle.

“(2) Removal of actions in State courts—Any action brought in a State court to which the Corporation is a party shall be removed to the appropriate United States district court under the provisions of chapter 89 of title 28.

“(b) Testimony of Corporation employees

“(1) In general—Except with the consent of the chief legal officer of the Corporation, employees of the Corporation may not provide expert opinion or expert testimony in civil litigation related to the Corporation.

“(2) Exceptions—The Corporation may prescribe the circumstances, if any, under which employees of the Corporation may provide expert opinion or expert testimony in civil litigation related to the Corporation.

“90316. Transfer of Federal personnel to Corporation

“(a) Transfer of FAA employees to Corporation

“(1) Process—Not later than 180 days after the date of enactment of this subtitle, the Secretary, after meeting and conferring with the CEO and representatives of the labor organizations recognized under section 7111 of title 5 as exclusive representatives of FAA employees, shall commence a process to determine, consistent with the purposes of this subtitle, which activities and employees, or categories of employees, of the FAA shall be transferred to the Corporation on or before the date of transfer.

“(2) Determination; transfer—The Secretary shall—

“(A) not later than 180 days prior to the date of transfer, complete the determination of which activities, employees, or categories of employees shall be transferred to the Corporation under paragraph (1);

“(B) upon completing the determination, notify the CEO, the labor organizations recognized under section 7111 of title 5 as exclusive representatives of FAA employees, and all affected employees of such determination; and

“(C) on or before the date of transfer, transfer such activities, employees, or categories of employees.

“(b) Subsequent transfer of employees

“(1) In general

“(A) Transfers from FAA to Corporation—During the 180-day period beginning on the date of transfer, the Secretary, after meeting and conferring with the CEO and representatives of the certified labor organizations recognized under section 91105 and labor organizations recognized under section 7111 of title 5 as exclusive representatives of FAA employees, may transfer an employee from the FAA to the Corporation if the Secretary, after meeting and conferring with the CEO and the representatives, finds that the determination with respect to the employee under subsection (a) was inconsistent with the purposes of this subtitle.

“(B) Transfers from Corporation to FAA—During the 180-day period beginning on the date of transfer, the Secretary, after meeting and conferring with the CEO and representatives of the certified labor organizations recognized under section 91105 and labor organizations recognized under section 7111 of title 5 as exclusive representatives of FAA employees, may transfer an employee from the Corporation to the FAA if the Secretary, after the consultation with the CEO and the representatives, finds that the determination with respect to the employee under subsection (a) was inconsistent with the purposes of this subtitle.

“(2) Reemployment of Federal employees—An employee transferred from the Corporation to the FAA under this subsection shall be entitled to the same rights and benefits, and reemployment, in the same manner as if covered by section 3582 of title 5 notwithstanding section 8347(o), 8713, or 8914 of such title.

“(3) Election of benefits for employees subject to delayed transfer to Corporation—In the case of an employee of the FAA transferred to the Corporation under this subsection, such employee shall be afforded the opportunity to make the election provided under section 91102(b) with respect to benefits.

“(c) Corporation employee benefits—At least 180 days before the date of transfer, the Corporation shall establish a compensation and benefits program for—

“(1) employees hired by the Corporation after the date of transfer; and

“(2) employees that make the election under section 91102(b)(1)(A)(ii).

“(d) Protections for employees not transferred to Corporation—For those employees of the FAA directly involved in the operation of air traffic services who are not transferred to the Corporation pursuant to subsection (a) or who transferred back to the FAA pursuant to subsection (b), the Secretary shall provide to such employees compensation and benefits consistent with the applicable collective-bargaining agreement that are not less than the level of compensation and benefits provided to such FAA employees prior to the date of transfer unless mutually agreed to by the FAA and representatives of the certified labor organization.

“(e) Suitability, clearances, and medical qualifications—All federally issued or federally required credentials, certificates, clearances, medical qualifications, access rights, substance testing results, and any other Federal permissions or approvals held by any employee of the FAA in the operation of air traffic services that are valid and effective on the day prior to the date of transfer shall remain valid and effective after the date of transfer—

“(1) unless revoked for cause; or

“(2) until equivalent or substantially equivalent credentials, certificates, clearances, medical qualifications, access rights, substance testing results, and any other Federal permissions or approvals have been issued to the employee on or after the date of transfer.

“(f) Transition agreements

“(1) Bipartite agreement

“(A) Meetings—At least 180 days before the date of transfer, the Corporation shall meet with the labor organizations recognized under section 7111 of title 5 as exclusive representatives of FAA employees to resolve employment-related transition matters that affect employees represented by those labor organizations and that are not otherwise covered under this section.

“(B) Duty to bargain in good faith—The Corporation and the labor organizations described in subparagraph (A) (in this subsection referred to as the “parties”) shall be subject to the duty to bargain in good faith under chapter 911 in any meetings pursuant to this paragraph.

“(C) Dispute resolution procedures—If the parties fail to reach an agreement over the initial or subsequent employment-related transition issues not otherwise covered under this section, the matters shall be subject to the dispute resolution procedures established under subsections (a), (b), and (e) of section 91107.

“(2) Tripartite agreement

“(A) Meetings—At least 1 year before the date of transfer, the Corporation and the FAA shall meet with the labor organizations recognized under section 7111 of title 5 as exclusive representatives of FAA employees to resolve transition matters related to the separation of air traffic services from the FAA pursuant to this subtitle that affect employees represented by those labor organizations and that are not otherwise covered under this section.

“(B) Duty to bargain in good faith—To the extent applicable, the Corporation and the labor organizations described in subparagraph (A) shall be subject to the duty to bargain in good faith under chapter 911 in any meetings pursuant to this paragraph.

“(C) Dispute resolution procedures—If the Corporation and the certified labor organizations described in subparagraph (A) fail to reach an agreement over the initial or subsequent transition issues related to the separation of air traffic services from the FAA, not otherwise covered under this section, the matters shall be subject to the dispute resolution procedures established under subsections (a), (b), and (e) of section 91107.

“90317. Transfer of facilities to Corporation

“(a) Inventory of FAA property and facilities—At least 1 year before the date of transfer, the Secretary, in consultation with the CEO, shall identify the licenses, patents, software rights, and real and personal property, including air navigation facilities (as defined in section 40102(a)) of the United States under FAA jurisdiction, that are necessary and appropriate for the Corporation to carry out the air traffic services transferred to the Corporation under this subtitle.

“(b) Transfer of Federal property

“(1) Conveyance of property to Corporation—On the date of transfer, the Secretary shall convey, without charge, all right, title, and interest of the United States in, and the use, possession, and control of, properties identified under subsection (a).

“(2) Sale of property by Corporation after date of transfer—If the Corporation sells any of the property conveyed to the Corporation under paragraph (1), the Corporation shall use the proceeds received from the sale of such property for the acquisition or improvement of air navigation facilities or other capital assets.

“(3) Reversionary interest—Any conveyance of real property under this section located at an FAA technical facility shall be subject to the condition that all right, title, and interest in the real property shall revert to the United States and be placed under the administrative control of the Secretary if—

“(A) the Corporation determines the real property is no longer necessary to carry out the air traffic services transferred to the Corporation under this subtitle; and

“(B) the Secretary determines the reversion is necessary to protect the interests of the United States.

“(4) Safety air traffic services equipment in remote locations

“(A) Maintenance by Corporation—Any equipment identified pursuant to subsection (a) and conveyed to the Corporation pursuant to paragraph (1) that is located in a noncontiguous State of the United States and is critical to the safe provision of air traffic services in that State may not be sold and shall be maintained and, as determined necessary by the Corporation, upgraded by the Corporation.

“(B) Equipment critical to safe provision of air traffic services—For purposes of this paragraph, equipment critical to the safe provision of air traffic services includes GPS receivers, data link transceivers, ADS–B, multi-function displays, flight information services, moving map displays, terrain databases, airport lighting, and mountain pass cameras.

“(c) Consolidation and realignment of transferred services and facilities

“(1) In general—At least 180 days before the date of transfer, and subject to section 91107, the Corporation, in consultation with representatives of labor organizations representing operations and maintenance employees of the air traffic control system, shall establish a process for the realignment and consolidation of services and facilities to be transferred to the Corporation from the FAA.

“(2) Moratorium—Except as otherwise provided, there shall be a moratorium on any effort by the Administrator or the Corporation to consolidate or realign air traffic services or facilities until the process required by paragraph (1) is established.

“90318. Approval of transferred air navigation facilities and other equipment

“On the date of transfer, the Corporation is authorized to operate all air navigation facilities and other equipment conveyed pursuant to section 90317 without additional approval or certification by the Secretary.

“90319. Use of spectrum systems and data

“Beginning on the date of transfer, the Secretary shall provide the Corporation with such access to the spectrum systems used by the FAA before the date of transfer to provide air traffic services, and any successor spectrum systems, and to the data from such systems, as is necessary to enable the Corporation to provide air traffic services under this subtitle.

“90320. Transition plan

“(a) Transition team—Not later than 120 days after the date of enactment of this subtitle, the Secretary, after meeting and conferring with the CEO or Interim CEO, shall establish a transition team to develop, consistent with this subtitle, a transition plan to be reviewed by the Secretary and, if approved, utilized by the Department of Transportation during the period in which air traffic services are transferred from the FAA to the Corporation.

“(b) Membership—The transition team shall consist of 12 individuals, who are citizens of the United States, as follows:

“(1) 5 representatives appointed by the Secretary, including—

“(A) the Deputy Administrator of the FAA;

“(B) the Director of the FAA Mike Monroney Aeronautical Center;

“(C) the Director of the FAA William J. Hughes Technical Center; and

“(D) 2 representatives from the Office of Management and Budget, appointed with the concurrence of the Director of the Office of Management and Budget.

“(2) 1 representative appointed by the exclusive bargaining representative of air traffic controllers certified under section 7111 of title 5.

“(3) 1 representative appointed by the exclusive bargaining representative for airway transportation systems specialists in the Air Traffic Organization technical operations services certified under section 7111 of title 5.

“(4) 5 representatives appointed by the CEO.

“(c) Transition plan

“(1) In general—Not later than 45 days after the establishment of the transition team, the transition team shall develop and submit to the Secretary an executable transition plan.

“(2) Contents—The transition plan shall set forth a plan for the Secretary, in consultation with the CEO or Interim CEO, to—

“(A) identify property, facilities, equipment, and obligations, contractual or otherwise, related to the provision of air traffic services; and

“(B) safely and efficiently transfer Federal personnel, property, facilities, equipment, and obligations, contractual and otherwise, related to the provision of air traffic services to the Corporation on or before the date of transfer.

“(d) Secretarial review

“(1) In general—Not later than 30 days after receipt of the transition plan, the Secretary shall review and, if appropriate, approve the plan.

“(2) Disapproval—If the Secretary does not approve a submitted transition plan, the transition team shall revise the plan and resubmit it to the Secretary not later than 30 days after receiving notice of the disapproval by the Secretary.

“(e) Termination—The transition team shall terminate upon approval of a transition plan by the Secretary.

“905 Regulation of Air Traffic Services Provider

“90501. Safety oversight and regulation of Corporation

“(a) Performance-Based regulations and minimum safety standards—After consultation with the Corporation and the FAA’s certified bargaining representatives and before the date of transfer, the Secretary shall—

“(1) prescribe performance-based regulations and minimum safety standards for the operation of air traffic services by the Corporation;

“(2) prescribe performance-based regulations and minimum safety standards for the certification and operation of air navigation facilities (other than facilities that may be operated without additional approval or certification pursuant to section 90318); and

“(3) identify policies and other administrative materials of the FAA in effect before the date of transfer for providing air traffic services that will apply to the Corporation.

“(b) Safety management system

“(1) In general—The regulations and standards prescribed pursuant to subsection (a) shall include a safety management system for air traffic services provided by the Corporation.

“(2) Foundation—The safety management system shall be based on the safety management system used by the Air Traffic Organization of the FAA before the date of transfer.

“(3) Use by Corporation—Beginning on the date of transfer, the Corporation shall use the safety management system, including any changes thereto, when assessing and managing risks in all procedures, processes, and practices necessary to provide air traffic services.

“(4) FAA oversight—To the maximum extent practicable, for at least 2 years after the date of transfer, the Air Traffic Safety Oversight Service of the FAA shall employ the same oversight processes and procedures in use before the date of transfer.

“(c) Proposals To modify air traffic management procedures, assignments, and classifications of airspace

“(1) Submission of proposals to Secretary—The Corporation or another interested party may submit to the Secretary a proposal to modify—

“(A) air traffic management procedures, assignments, classifications of airspace, or other actions affecting airspace access that are developed pursuant to the safety management system; and

“(B) FAA policies and other administrative materials identified under subsection (a)(2).

“(2) Review and approval of proposals—The regulations and standards prescribed under subsection (a)(1) shall include a process for expedited review and approval of a proposal received under paragraph (1).

“(3) Standard for approval—The Secretary shall approve a proposal received under paragraph (1) if the Secretary determines that the proposal complies with the regulations and standards prescribed under subsection (a)(1) and is otherwise consistent with the public interest, including that the proposal would not materially reduce access to a public-use airport.

“(4) Approvals and disapprovals

“(A) In general—During the 45-day period beginning on the date of receipt of a proposal under paragraph (1), the Secretary shall approve or disapprove the proposal.

“(B) Written explanation—If the Secretary disapproves the proposal, the Secretary shall provide—

“(i) a written explanation of the Secretary’s decision, including—

“(I) any instances of inconsistency with the regulations and standards prescribed under subsection (a)(1); and

“(II) any other information that formed the basis for the Secretary’s decision; and

“(ii) a description of any modifications to the proposal that are necessary to obtain approval.

“(5) Failure to act—If the Secretary fails to act on a proposal received under paragraph (1) during the 45-day period described in paragraph (4)(A), the Corporation or other party making the proposal shall be entitled to a writ of mandamus in a Federal district court with venue.

“(d) Judicial review

“(1) In general—Any decision made by the Secretary to approve or disapprove a proposal received under subsection (c)(1) shall be subject to judicial review pursuant to subsections (a), (b), (d), and (e) of section 46110.

“(2) Standard of review

“(A) Disapprovals—In the case of a petition filed under section 46110(a) to review a decision of the Secretary that disapproves a proposal received from the Corporation under subsection (c)(1), the court shall, without deference to the Secretary’s determination, review de novo the record to determine if the Secretary’s determination is consistent with the regulations and standards prescribed under subsection (a)(1).

“(B) Approvals—In the case of a petition filed under section 46110(a) to review a decision of the Secretary that approves a proposal received from the Corporation under subsection (c)(1), the court may overturn the approval only upon a finding of clear error or an abuse of discretion.

“(e) Compilation

“(1) Establishment—The Corporation shall establish and maintain a compilation of the policies and other materials identified under subsection (a)(2).

“(2) Updates—The Corporation shall update the compilation each time a proposal described in subsection (c)(1)(B) is approved.

“(3) Publication—The Corporation shall make the compilation available to the public.

“(f) Special rules for proposals affecting certain airspace—The regulations and standards prescribed under subsection (a)(1) shall include procedures (including advance submission of necessary supporting data, analysis, and documentation) for the Secretary to evaluate, at least 180 days before its submission under subsection (c)(1), a proposal for an airspace change that would affect airspace that is—

“(1) within an area designated as a “Metroplex” by the FAA as of March 30, 2017;

“(2) within an area subject to a major, large-scale airspace redesign project; or

“(3) adjacent to or containing special use airspace.

“(g) Exempted airspace actions—The requirements of this section shall not apply to—

“(1) temporary airspace actions directed by the Administrator or Secretary;

“(2) airspace actions as described in section 90904; or

“(3) certain emergency circumstances, as defined by the Secretary by regulation.

“(h) Delegation—Notwithstanding section 90303(b), and except for the process and procedures required by section 90703(b), the Secretary may delegate safety oversight functions to the Administrator.

“90502. Resolution of disputes concerning air traffic services charges and fees

“(a) Authority To request Secretary’s determination

“(1) In general—The Secretary shall issue a determination as to whether a charge or fee assessed by the Corporation for the use of air traffic services in United States airspace or international airspace delegated to the United States is correct if a written complaint for such determination is filed with the Secretary by an air traffic services user not later than 60 days after the air traffic services user receives an assessment or invoice from the Corporation.

“(2) Treatment of interest and penalties—In this section, the terms “charge” and “fee” include any interest and penalty relating thereto.

“(b) Procedural regulations—At least 270 days before the date of transfer, the Secretary shall publish in the Federal Register final regulations, policy statements, or guidelines establishing the procedures for acting upon written complaints filed under subsection (a)(1) and requests of the Corporation pursuant to subsection (e)(3).

“(c) Determination of correctness—In determining under subsection (a)(1) whether a charge or fee is correct, the Secretary shall determine only if the charge or fee is consistent with approved charges or fees pursuant to section 90313.

“(d) Decisions by Secretary—The final regulations, policy statements, or guidelines required in subsection (b) shall provide for the following:

“(1) Not later than 90 days after an air traffic services user files with the Secretary a written complaint relating to an assessed or invoiced air traffic services charge or fee, the Secretary shall issue a final order determining whether the charge or fee is correct.

“(2) Not later than 30 days after such complaint is filed with the Secretary, the Secretary shall dismiss the complaint if no significant dispute exists or shall assign the matter to an administrative law judge. Thereafter, the matter shall be handled in accordance with part 302 of title 14, Code of Federal Regulations, or as modified by the Secretary, to ensure an orderly disposition of the matter within the 90-day period referred to in paragraph (1) and any specifically applicable provisions of this section.

“(3) The administrative law judge shall issue a recommended decision not later than 45 days after the complaint is assigned or within such shorter period as the Secretary may specify.

“(4) If the Secretary, upon the expiration of 90 days after the filing of the complaint, has not issued a final order, the decision of the administrative law judge shall be deemed to be the final order of the Secretary.

“(5) Any party to the dispute may seek review of a final order of the Secretary under this subsection in the Circuit Court of Appeals for the District of Columbia Circuit or the court of appeals in the circuit with venue.

“(6) Any findings of fact in a final order of the Secretary under this subsection, if supported by substantial evidence, shall be conclusive if challenged in a court pursuant to this subsection. No objection to such a final order may be considered by the court unless objection was urged before an administrative law judge or the Secretary at a proceeding under this subsection or, if not so urged, unless there were reasonable grounds for failure to do so.

“(e) Payment under protest; guarantee of air traffic services user access

“(1) Payment under protest

“(A) In general—Any charge or fee that is the subject of a complaint that is not dismissed by the Secretary shall be paid by the complainant air traffic services user to the Corporation under protest.

“(B) Referral or credit—Any amounts paid under this subsection by a complainant air traffic services user to the Corporation under protest shall be subject to refund or credit to the air traffic services user in accordance with directions in the final order of the Secretary within 30 days of such order.

“(C) Timely repayment—In order to ensure the timely repayment, with interest, of amounts in dispute determined not to be correct by the Secretary, the Corporation shall obtain a letter of credit, or surety bond, or other suitable credit facility, equal to the amount in dispute that is due during the 90-day period referred to in subsection (d)(1), plus interest, unless the Corporation and the air traffic services user agree otherwise.

“(D) Deadline—The letter of credit, or surety bond, or other suitable credit facility shall be provided to the Secretary not later than 20 days after the filing of the complaint and shall remain in effect for 30 days after the issuance of a timely final order by the Secretary determining whether such charge or fee is correct.

“(2) Guarantee of air traffic services user access—Contingent upon an air traffic services user’s compliance with the requirements of paragraph (1) and pending the issuance of a final order by the Secretary determining the correctness of a charge or fee that is the subject of a complaint filed under subsection (a)(1), the Corporation may not withhold air traffic services as a means of enforcing the charge or fee.

“(3) Noncompliance—Prior to the issuance of a final order by the Secretary determining the correctness of a charge or fee that is the subject of a complaint filed under subsection (a)(1), if an air traffic services user does not comply with the requirements of paragraph (1), the Corporation shall withhold air traffic services from the user if the Corporation requests and receives approval from the Secretary to withhold air traffic services.

“90503. International agreements and activities

“(a) Consistency with international obligations and laws of other countries—The Corporation shall provide air traffic services under this subtitle in a manner that is consistent with any obligation assumed by the United States in a treaty, convention, or agreement that may be in force between the United States and a foreign country or foreign countries or between the United States and an international organization, and shall take into consideration any applicable laws and requirements of foreign countries.

“(b) Prohibition—The Corporation may not negotiate on behalf of or otherwise represent the United States before any foreign government or international organization.

“90504. Availability of safety information

“(a) Safety information—The Corporation shall make available to air traffic services users and the public—

“(1) the same type of safety information made available by the FAA before the date of transfer;

“(2) any additional safety information needed by air traffic services users to operate safely; and

“(3) any updates or revisions to the safety information referred to in paragraphs (1) and (2).

“(b) Meteorological services; aeronautical charts—The Corporation may provide for the dissemination of available aviation-related meteorological information and aeronautical charts to air traffic services users.

“90505. Reporting of safety violations to FAA

“(a) In general—In a manner, form, and process prescribed by the Administrator, the Corporation shall report to the Administrator complaints or instances of—

“(1) noncompliance with or deviations from air traffic control clearances or instructions;

“(2) noncompliant operations in controlled airspace or special use airspace; and

“(3) any other observed activities endangering persons or property in the air or on the ground.

“(b) Assistance in enforcement actions—The Corporation shall provide necessary assistance in any enforcement action taken by the Administrator resulting from a report of the Corporation or another person or entity.

“(c) Statutory construction—This section may not be construed to limit the authority of the Administrator to undertake enforcement actions upon the Administrator's initiative.

“90506. Insurance requirements

“The Corporation shall maintain adequate liability insurance policies and coverages, as determined by the Secretary, including complete indemnification of employees of the Corporation for acts within the scope of employment.

“907 General Rights of Access to Airspace, Airports, and Air Traffic Services Vital for Ensuring Safe Operations for All Users

“90701. Access to airspace

“The Secretary shall take such actions as are necessary to ensure that an air traffic services user is not denied access to airspace or air traffic services on the basis that the user is exempt from charges and fees under section 90313.

“90702. Access to airports

“In carrying out section 90501(c)(3), the Secretary shall determine whether a proposal would materially reduce access to a public-use airport, including a general aviation or rural airport.

“90703. Contract tower service after date of transfer

“(a) Transfer of contract tower agreements to Corporation—In carrying out section 91302(e), the Secretary shall take such actions as are necessary to ensure that the Corporation assumes the contract and other obligations associated with the operation of an air traffic control tower that, prior to the date of transfer, was operated under a contract pursuant to section 47124.

“(b) Special rules for proposals relating to operation of contract towers

“(1) In general—The regulations and standards prescribed under section 90501(a)(1) shall include procedures for the Secretary to evaluate, under section 90501(c), a proposal for an airspace change, including an airspace reclassification, that results from the proposed closure of a tower that is operating under a contract with the Corporation and that, prior to the date of transfer, was operated under a contract with the Secretary pursuant to section 47124.

“(2) Procedures—The procedures required pursuant to paragraph (1) shall include—

“(A) the advance submission by the Corporation of necessary supporting data, analysis, and documentation related to—

“(i) the safety risk management assessment of the proposed contract tower closure;

“(ii) an assessment of the impact of the proposed closure on the operation of the national airspace system;

“(iii) an assessment of the impact of the proposed closure on local communities, including with respect to air service;

“(iv) an assessment, in consultation with the Secretary of Defense and the Secretary of Homeland Security, as appropriate, of any impact of the proposed closure on military aviation readiness and training, homeland security aviation operations, emergency management and disaster aviation operations, and law enforcement aviation operations; and

“(v) any other safety or operational information the Secretary determines to be necessary to understand the safety impact of the proposed closure; and

“(B) a process to receive input from the public, impacted air traffic services users, local communities, and the airport operator of the airport where the contract tower proposed to be closed is located.

“90704. Availability of safety information to general aviation operators

“In carrying out section 90504, the Corporation shall ensure that the safety information referenced in that section is made available to general aviation operators.

“90705. Special rules and appeals process for air traffic management procedures, assignments, and classifications of airspace

“(a) In general—If the Corporation proposes to modify, reduce, decommission, or eliminate an air traffic service or air navigation facility that would result in the loss of or material reduction in access to a public-use airport or adjacent airspace for any class, category, or type of aircraft or aircraft operation, as determined by the Secretary, the Secretary shall designate an officer to issue a notice in the Federal Register and establish a docket that includes—

“(1) a copy of the Corporation’s proposal;

“(2) available data on the usage of the affected air traffic service or air navigation facility;

“(3) an assessment of the designated officer on the effects of the proposal; and

“(4) an assessment of the designated officer on any proposed action to mitigate the loss of or material reduction in access to the public-use airport or adjacent airspace.

“(b) Proceeding—The designated officer shall provide an opportunity for public comment on the proposal for a period of at least 60 days.

“(c) Decision—Not later than 30 days after the last day of the public comment period, the designated officer shall—

“(1) determine whether the proposal is in the public interest, including whether any material reduction in access to a public-use airport or adjacent airspace has been mitigated to the maximum extent practicable; and

“(2) approve or disapprove the proposal on that basis.

“(d) Relationship to other requirements—Notwithstanding section 90501(c), a proposal described in subsection (a)—

“(1) shall be subject to the process established in this section; and

“(2) may not be implemented unless approved under this section.

“(e) Appeals and secretarial review

“(1) Written petition for review—A petition for an appeal of a decision of the designated officer under subsection (c) shall be submitted in writing to the Secretary not later than 30 days after the date of the decision.

“(2) Secretarial review—The Secretary shall review and make a determination with respect to a timely filed petition under paragraph (1) not later than 30 days after the date of receipt of the petition.

“(f) Decisional standards—In making a determination under this section, neither the Secretary nor the designated officer may consider any factor not directly germane to—

“(1) the safe operation or navigation of an aircraft; or

“(2) the sufficiency of mitigation efforts related to a material reduction in access to a public-use airport or adjacent airspace.

“(g) Judicial review

“(1) In general—Any determination made by the Secretary under subsection (e)(2) shall be subject to judicial review pursuant to subsections (a), (b), (d), and (e) of section 46110.

“(2) Standard of review

“(A) Disapprovals—In the case of a petition filed under section 46110(a) to review a determination of the Secretary that disapproves a proposal, the court shall, without deference to the Secretary’s determination, review de novo the record to determine if the Secretary’s determination is in the public interest.

“(B) Approvals—In the case of a petition filed under section 46110(a) to review a determination of the Secretary that approves a proposal, the court may overturn the approval only upon a finding of clear error or an abuse of discretion.

“90706. Definitions

“In this chapter, the following definitions apply:

“(1) Material reduction—The term “material reduction” means, with respect to access to a public-use airport, including a general aviation or rural airport, a materially diminished ability to safely operate or navigate to or from the airport or adjacent airspace during a time of day, weather condition, or season of the year.

“(2) Rural airport—The term “rural airport” means a public-use airport located in a rural area (as that term is defined in section 520 of the Housing Act of 1949 (42 U.S.C. 1490)).

“909 Continuity of Air Traffic Services to Department of Defense and Other Public Agencies

“90901. Continuity of air traffic services provided by Department of Defense

“After the date of transfer, the Department of Defense, as directed by the President, is authorized and permitted to provide air traffic services within United States airspace and international airspace delegated to the United States.

“90902. Military and other public aircraft exempt from user fees

“The Corporation may not impose charges or fees for operations of aircraft owned or operated by the Armed Forces or other aircraft that qualify as public aircraft under sections 40102(a) and 40125.

“90903. Air traffic services for Federal agencies

“Before the date of transfer, the Secretary shall establish processes, requirements, procedures, and regulations and take any other measure necessary, consistent with the purposes of this subtitle, to ensure that all United States Government activities supported by the FAA’s operation of air traffic services as of the date of transfer receive support from the Corporation after the date of transfer and on an ongoing basis.

“90904. Emergency powers of Armed Forces

“The requirements of section 90501 shall not apply to airspace actions necessitated by an exercise of authority under section 40106.

“90905. Adherence to international agreements related to operations of Armed Forces

“In carrying out section 90503, the Corporation shall ensure that the obligations described in that section include obligations related to operations of the Armed Forces.

“90906. Primacy of Armed Forces in times of war

“The President may make temporary transfers to the Secretary of Defense pursuant to section 40107(b).

“90907. Cooperation with Department of Defense and other Federal agencies after date of transfer

“At least 1 year prior to the date of transfer, the Corporation, the Department of Transportation, and each Federal department or agency supported by the FAA’s operation of air traffic services, including the Armed Forces, shall enter into a tripartite agreement to—

“(1) ensure cooperation between the Corporation and the department or agency on the delivery of air traffic services;

“(2) facilitate the safe provision of air traffic services to the department or agency; and

“(3) address how the Corporation and the department or agency will coordinate and communicate on the day-to-day operations of the national airspace system.

“911 Employee Management

“91101. Definitions

“In this chapter, the following definitions apply:

“(1) Agency—The term “Agency” means, as the context requires, the Department of Transportation or the FAA.

“(2) Air traffic controller

“(A) In general—The term “air traffic controller” means an employee of the Corporation who, in an air traffic control facility or flight service station facility—

“(i) is actively engaged—

“(I) in the separation and control of air traffic; or

“(II) in providing preflight, inflight, or airport advisory service to aircraft operators; or

“(ii) is the immediate supervisor of any employee described in clause (i).

“(B) Limitation—Notwithstanding subparagraph (A), the definition of “air traffic controller” for purposes of section 8336(e) of chapter 83 of title 5 and section 8412(e) of chapter 84 of such title shall mean only employees actively engaged in the separation of air traffic and the immediate supervisors of such employees, as set forth in section 8331(30) of such title, and section 8401(35) of such title.

“(3) Authority—The term “Authority” means the Federal Labor Relations Authority, as described in section 7104(a) of title 5.

“(4) Service—The term “Service” means the Federal Mediation and Conciliation Service established by section 202 of the Labor Management Relations Act, 1947 (29 U.S.C. 172).

“91102. Employee management and benefits election

“(a) Authority of CEO

“(1) In general—Except as otherwise provided by law, the CEO shall classify and fix the compensation and benefits of employees in the Corporation.

“(2) Negotiations—In developing, making changes to, and implementing wages, hours, and other terms and conditions of employment, including when establishing the compensation and benefits program under section 90316(c), the Corporation shall negotiate with exclusive representatives recognized under section 91105.

“(3) Before date of transfer—For purposes of paragraph (2), before the date of transfer, the term “exclusive representatives recognized under section 91105” shall refer to labor organizations recognized under section 7111 of title 5 as exclusive representatives of FAA employees.

“(b) Former Federal employees

“(1) Federal retirement benefits

“(A) Election of retirement benefits—At least 90 days before the date of transfer, an employee transferring to the Corporation who will be subject to either the Civil Service Retirement System under chapter 83 of title 5 (in this section referred to as “CSRS”) or the Federal Employees Retirement System under chapter 84 of title 5 (in this section referred to as “FERS”) on the day immediately preceding the date of transfer shall elect either to—

“(i) retain the employee’s coverage under either CSRS or FERS, as applicable, in lieu of coverage by the Corporation’s employee benefits system established under section 90316(c); or

“(ii) receive a deferred annuity, lump-sum benefit, or any other benefit available to the employee under CSRS or FERS, in the same manner that would have been available to the employee if the employee had voluntarily separated from Federal employment on the day before the date of transfer.

“(B) Thrift Savings Plan accounts—An employee who makes the election under subparagraph (A)(ii) shall have the option to transfer the balance in the employee’s Thrift Savings Plan account to the plan under the Corporation’s retirement system, consistent with applicable law and the terms of the Corporation’s plan.

“(C) Periodic election—The Corporation shall provide for periodic election seasons during which an employee who transferred to the Corporation on the date of transfer may become eligible for retirement benefits under the Corporation’s employee benefits system established under section 90316(c) by making an election under subparagraph (A)(ii).

“(D) Continuity of annuitant benefits—Notwithstanding any other provision of law, any individual who is receiving an annuity under chapter 83 or chapter 84 of title 5 may continue to receive such annuity while employed by the Corporation.

“(E) High-3 determination—With respect to any employee who retains CSRS or FERS coverage pursuant to subparagraph (A), such employee’s basic pay while with the Corporation shall be included in any determination of such employee’s average pay under section 8331(4) or 8401(3), as the case may be, of title 5 when calculating the annuity (if any) of such employee. For purposes of this section, an employee’s basic pay shall be defined as such employee’s total annual salary or wages from the Corporation, including any location-based adjustment.

“(2) Payments to Civil Service Retirement and Disability Fund—For employees of the Corporation who elect to retain their coverage under either CSRS or FERS pursuant to paragraph (1), the Corporation shall only be required to pay to the Civil Service Retirement and Disability Fund—

“(A) such employee deductions and agency contributions as are required by sections 8334, 8422, and 8423 of title 5; and

“(B) such additional amounts, not to exceed 2 percent of the amounts under subparagraph (A), as are determined necessary by the Office of Personnel Management to pay the cost of administering retirement benefits for employees who retire from the Corporation after the date of transfer under either CSRS or FERS, for their survivors, and for survivors of employees of the Corporation who die after the date of transfer (which amounts shall be available to the Office of Personnel Management as provided in section 8348(a)(1)(B) of title 5).

“(3) Thrift Savings Fund—The Corporation shall pay to the Thrift Savings Fund such employee and agency contributions as are required by section 8432 of title 5 for employees who elect to retain their coverage under FERS pursuant to paragraph (1).

“(4) Health benefits plan election—Any employee of the Corporation who was subject to the Federal Employees Health Benefits Program under chapter 89 of title 5 (in this section referred to as “FEHBP”) on the day immediately preceding the date of transfer shall have the option to receive health benefits from a health benefit plan established by the Corporation under section 90316(c) or to continue coverage under FEHBP without interruption.

“(5) Payments to Employees Health Benefits Fund—For employees of the Corporation who elect to retain their coverage under FEHBP pursuant to paragraph (4), the Corporation shall pay to the Employees Health Benefits Fund—

“(A) such employee deductions and agency contributions as are required by subsections (a) through (f) of section 8906 of title 5; and

“(B) such amounts as are determined necessary by the Office of Personnel Management under paragraph (6) to reimburse the Office of Personnel Management for contributions under section 8906(g)(1) of title 5.

“(6) Reimbursement amounts—The amounts required to be paid by the Corporation under paragraph (5)(B) shall be equal to the amount of Government contributions for retired employees who retire from the Corporation after the date of transfer under either CSRS or FERS, for survivors of such retired employees, and for survivors of employees of the Corporation who die after the date of transfer, with said amounts prorated to reflect only that portion of the total service of such employees and retired persons that was performed for the Corporation after the date of transfer.

“(7) Additional benefits—Subject to the provisions of this chapter, any employee of the Corporation who was subject to the provisions of subchapter I of chapter 85 (concerning unemployment compensation) and chapters 87 (concerning life insurance), 89A (concerning enhanced dental benefits), and 89B (concerning enhanced vision benefits) of title 5 shall have the option to continue coverage under such provisions without interruption in lieu of applicable coverage by the Corporation’s employee benefits system established under section 90316(c). The Corporation shall withhold from pay, and shall make contributions, under the provisions of title 5 referred to in this subsection at the same rates applicable to agencies of the Federal Government for such employees.

“(8) Workers compensation—Officers and employees of the Corporation shall be covered by, and shall be considered employees for purposes of, subchapter I of chapter 81 of title 5 (concerning compensation for work injuries). The Corporation shall make contributions to the Employees’ Compensation Fund under the provisions of section 8147 of title 5 at the same rates applicable to agencies of the Federal Government.

“(9) Non-Foreign area—To the extent consistent with law, the Non-Foreign Area Retirement Equity Assurance Act of 2009 shall apply to officers and employees of the Corporation transferred under section 90316.

“(10) Transfer of leave—Sick and annual leave, credit hours, and compensatory time of officers and employees of the Corporation, whether accrued before or after the date of transfer, shall be obligations of the Corporation under the provisions of this chapter.

“(11) Whistleblower protection—Neither the Corporation, nor any officer or employee of the Corporation, may take any action described in subsection (b)(8), (b)(9), or (b)(13), or the final paragraph of subsection (b), of section 2302 of title 5 (relating to whistleblower protection).

“91103. Labor and employment policy

“(a) Application of chapter 71 of title 5—To the extent not inconsistent with this chapter, labor-management relations shall be subject to the provisions of chapter 71 of title 5, provided that the obligation of the Corporation and an exclusive bargaining representative recognized under section 91105 to bargain collectively in good faith over conditions of employment shall mean to bargain over the same wages, hours, and other terms and conditions of employment as are negotiable under section 8(d) of the Act of July 5, 1935, as amended (29 U.S.C. 158(d)), and without application of section 7103(a)(14) of title 5 and section 7117 of title 5, which shall not apply.

“(b) Applicability—To the limited extent necessary for the implementation of this chapter, the Corporation shall have the rights and obligations of an agency under chapter 71 of title 5.

“(c) Application of Fair Labor Standards Act—The provisions of the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) shall apply to the Corporation and to its officers and employees.

“(d) Reporting and disclosure—The provisions of the Labor-Management Reporting and Disclosure Act of 1959 (29 U.S.C. 401 et seq.) shall be applicable to labor organizations that have or are seeking to attain recognition under section 91105, and to such organizations’ officers, agents, shop stewards, other representatives, and members.

“(e) Right To collectively bargain—Each employee of the Corporation shall have the right, freely and without fear of penalty or reprisal, to form, join, and assist a labor organization or to refrain from any such activity, and each employee shall be protected in the exercise of this right. Such right shall include the right to engage in collective bargaining with respect to the same wages, hours, and other terms and conditions of employment as are negotiable under section 8(d) of the Act of July 5, 1935, as amended (29 U.S.C. 158(d)).

“91104. Bargaining units

“(a) In general—Pursuant to section 7112 of title 5 and subject to the requirements of this chapter, the Authority shall decide in each case the unit appropriate for collective bargaining with the Corporation.

“(b) Previously certified units—Notwithstanding subsection (a), the Authority may not adopt, certify, or decide upon bargaining units that include employees in bargaining units previously certified by the Authority that are smaller in geographic scope than such previously certified bargaining units, unless the Authority finds by compelling evidence that such previously certified units would not, absent modification, remain units appropriate for collective bargaining with the Corporation.

“(c) Other units

“(1) Previous certifications—Notwithstanding subsection (a) or (b), the Authority shall not recognize or certify any bargaining unit different than the bargaining units previously certified by the Authority prior to the date described in section 91105(g).

“(2) Supervisors and management officials—Notwithstanding section 7135(a)(2) of title 5, a bargaining unit may not include, or be modified to include, any supervisor or management official, as those terms are defined in section 7103(a) of title 5.

“91105. Recognition of labor organizations

“(a) Application of chapter 71 of title 5—To the extent not inconsistent with this chapter, section 7111 of title 5 shall apply to the recognition and certification of labor organizations for the employees of the Corporation and the Corporation shall accord exclusive recognition to and bargain collectively with a labor organization when the organization has been selected by a majority of the employees in an appropriate unit as their representative.

“(b) Recognition of exclusive representative—Notwithstanding subsection (a), each labor organization that, immediately before the date of transfer, was recognized as the exclusive representative for a bargaining unit of employees of the Agency shall be deemed to be recognized on the date of transfer or thereafter as the exclusive representative for those employees of the Corporation in the same or similar bargaining unit unless another representative for a bargaining unit of employees is certified pursuant to section 7111 of title 5 and this section.

“(c) Expiration of term—Every collective-bargaining agreement or arbitration award that applies to an employee of the Agency and that is in force immediately before the date of transfer continues in force until its term expires. To the extent that the Corporation assumes the functions and responsibilities that, prior to the date of transfer, were conducted by the Agency, agreements and supplements (including any arbitration award, as applicable) covering employees of the Agency that are in effect on the date of transfer shall continue to be recognized by and binding on the Corporation, the bargaining representative, and all covered employees until altered or amended pursuant to law. Any agreement, supplement, or arbitration award continued by this section is deemed to be an agreement, supplement, or arbitration award binding on the Corporation, the bargaining representative, and all covered employees for purposes of this chapter and title 5.

“(d) Limitation on application—Notwithstanding section 91103, sections 7106 and 7113 of title 5 shall not apply to this chapter.

“(e) Continuation of bargaining—If an exclusive representative and the Agency are engaged in bargaining (whether concerning a collective-bargaining agreement, issues related to the transfer of functions and responsibilities from the Agency to the Corporation, or otherwise) prior to the date of transfer, such bargaining shall continue between the exclusive representative and the Corporation, and the Corporation shall be bound by any commitments made during bargaining by the Agency.

“(f) Statutory construction—Nothing in this section may be construed to prohibit the waiving of hearings by stipulation for the purpose of a consent election in conformity with regulations and rules of decision of the Authority.

“(g) Limitation—Notwithstanding any other provision of this chapter or any provision of title 5, no bargaining unit or part of a bargaining unit consisting of employees of the Corporation represented by a labor organization pursuant to subsection (b) may be reviewed, rescinded, amended, altered, or varied, other than—

“(1) to include in the unit any employees who are not represented by a labor organization, or

“(2) to merge bargaining units that are represented by the same labor organization,

“(h) Deduction

“(1) In general—Notwithstanding section 91103, section 7115 of title 5 shall not apply to this chapter.

“(2) Dues—When a labor organization holds exclusive recognition, the Corporation shall deduct the regular and periodic dues, initiation fees, and assessments (not including fines and penalties) of the organization from the pay of all members of the organization in the unit of recognition if the Corporation (or, before the date of transfer, the Agency) has received from each employee, on whose account such deductions are made, a written assignment which shall be irrevocable for a period of not more than 1 year.

“(3) Continuation—Any agreement described in subsection (c) that provides for deduction by the Agency of the regular and periodic dues, initiation fees, and assessments (not including fines and penalties) of the labor organization from the pay of its members shall continue in full force and effect and the obligation for such deductions shall be assumed by the Corporation. No such deduction may be made from the pay of any employee except on the employee’s written assignment, which shall be irrevocable for a period of not more than 1 year.

“91106. Collective-bargaining agreements

“(a) In general—Except as provided under section 91105(c), collective-bargaining agreements between the Corporation and bargaining representatives shall be effective for not less than 2 years.

“(b) Procedures—Collective-bargaining agreements between the Corporation and bargaining representatives recognized under section 91105 may include procedures for resolution by the parties of grievances and adverse actions arising under the agreement, including procedures culminating in binding third-party arbitration, or the parties may adopt such procedures by mutual agreement in the event of a dispute. Such procedures shall be applicable to disputes arising under section 91109.

“(c) Limitation on application—Notwithstanding section 91103, section 7121(c) of title 5 shall not apply to this chapter.

“(d) Dispute resolution procedures—The Corporation and bargaining representatives recognized under section 91105 may by mutual agreement adopt procedures for the resolution of disputes or impasses arising in the negotiation of a collective-bargaining agreement.

“91107. Collective-bargaining dispute resolution

“(a) Resolution of disputes

“(1) In general—If, prior to 90 days after the expiration of the term collective-bargaining agreement or 90 days after the parties begin mid-term negotiations, the Corporation and the exclusive bargaining representative of the employees of the Corporation (in this section referred to collectively as the “parties”) do not reach an agreement under sections 7114(a)(1), 7114(a)(4), and 7114(b) of title 5 (as such sections apply to the Corporation under this chapter), or section 91106(d) of this chapter, the Corporation and the bargaining representative shall use the mediation services of the Service to attempt to reach such agreement in accordance with part 1425 of title 29, Code of Federal Regulations (as in effect on the date of enactment of this subtitle).

“(2) Mediation period—The mediation period under paragraph (1) may not exceed 60 days unless extended by written agreement of the parties.

“(b) Binding arbitration for term bargaining

“(1) Three member private arbitration board—If the mediation services of the Service under subsection (a)(1) do not lead to the resolution of issues in controversy arising from the negotiation of a term collective-bargaining agreement, the parties shall submit their issues in controversy to a private arbitration board consisting of 3 members.

“(2) Appointment of arbitration board

“(A) Preparation of list of arbitrators—The Director of the Service shall provide for the appointment of the 3 members of an arbitration board by—

“(i) preparing a list of not fewer than 15 names of arbitrators of nationwide reputation and professional stature with at least 20 years of experience in labor-management arbitration and considerable experience in interest arbitration in major industries; and

“(ii) providing the list to the parties.

“(B) Selection of arbitrators by parties—Not later than 10 days after receiving a list of names under subparagraph (A), the parties shall each select one arbitrator. The arbitrators selected by the parties do not need to be arbitrators whose names appear on the list.

“(C) Selection of third arbitrator—Not later than 7 days after the date on which the 2 arbitrators are selected by the parties under subparagraph (B), the 2 arbitrators, acting jointly, shall select a third person from the list prepared under subparagraph (A).

“(D) Failure to act—If either of the parties fails to select a person or if the 2 arbitrators are unable to agree on the third person in 7 days, the parties shall make the selection by alternately striking names on the list prepared under subparagraph (A), beginning with the party chosen on a random basis, until one arbitrator remains.

“(3) Framing issues in controversy—If the parties do not agree on the framing of the issues to be submitted for arbitration, the arbitration board shall frame the issues.

“(4) Hearings—The arbitration board shall give the parties a full and fair hearing, including an opportunity to present evidence and witnesses in support of their claims and an opportunity to present their case in person, by counsel, or by other representative as they may elect.

“(5) Decisions—The arbitration board shall render its written decision not later than 90 days after the date of its appointment. Decisions of the arbitration board shall be conclusive and binding upon the parties.

“(6) Evidence—The arbitration board shall consider and afford the proper weight to all of the evidence presented by the parties.

“(7) Costs—The parties shall share costs of the arbitration equally.

“(c) Ratification of agreements—Upon reaching a voluntary agreement or at the conclusion of the binding arbitration under subsection (b), the final agreement, except for those matters decided by a private arbitration board, shall be—

“(1) subject to ratification by the exclusive bargaining representative of the employees, if so requested by the bargaining representative; and

“(2) subject to approval by the head of the Corporation in accordance with section 7114(c) of title 5.

“(d) Mid-Term bargaining

“(1) Preparation of list of arbitrators—If the mediation services of the Service under subsection (a) do not lead to the resolution of issues in controversy arising from the negotiation of a mid-term collective-bargaining agreement, the Director shall provide the parties a list of not fewer than 10 names of arbitrators of nationwide reputation and professional stature with at least 20 years of experience in labor-management arbitration and considerable experience in interest arbitration in major industries.

“(2) Selection of arbitrator—The parties shall alternately strike names on the list, beginning with the party chosen on a random basis, until one arbitrator remains.

“(3) Decision—The arbitrator shall hold a hearing, and not later than 90 days after date of the appointment of the arbitrator, issue a written decision resolving the issues in controversy. The decision shall be conclusive and binding upon the parties.

“(e) Enforcement—To enforce this section, either party may bring suit in the United States District Court for the District of Columbia, which shall hear and resolve the enforcement action on an expedited basis.

“(f) Application—Notwithstanding section 91103(a), section 7119 of title 5 shall not apply to this chapter.

“91108. Potential and pending grievances, arbitrations, and settlements

“(a) In general—The Corporation is deemed to be the employer referred to in any agreement or supplement referred to in section 91105(c) for the purpose of any arbitration proceeding or arbitration award. Any agreement concerning any employee that resolves a potential or filed grievance that is binding on the Agency shall, to the extent that the employee becomes an employee of the Corporation, become binding on the Corporation.

“(b) Existing binding agreements—Any agreement or supplement referred to in section 91105(c) is binding on—

“(1) the Corporation as if it were the employer referred to in such agreement or supplement;

“(2) the bargaining representative that is a party to the agreement or supplement; and

“(3) the employees of the Corporation in the bargaining unit with respect to whom that bargaining representative has been certified.

“(c) Jurisdiction—Subject to section 91103, the Authority shall retain jurisdiction over all matters arising before the date of transfer in relation to the interpretation and application of any agreement or supplement referred to in section 91105(c), whether or not such agreement or supplement has expired.

“(d) Existing grievances or arbitrations—Grievances or arbitrations that were filed or commenced before the date of transfer with respect to any agreement or supplement referred to in section 91105(c) shall be continued as though the Corporation were the employer referred to in the agreement or supplement.

“(e) Proceedings after date of transfer—Where events giving rise to a grievance under any agreement or supplement referred to in section 91105(c) occurred before the date of transfer but the proceedings had not commenced before that date, the proceedings may be commenced on or after the date of transfer in accordance with such agreement or supplement as though the Corporation were the employer referred to in such agreement or supplement.

“(f) Actions deemed To be by Corporation—For the purposes of subsections (c), (d), and (e), anything done, or not done, by the Agency is deemed to have been done, or to have not been done, as the case may be, by the Corporation.

“(g) Exceptions to arbitral awards

“(1) In general—Notwithstanding section 91103, section 7122 of title 5 shall not apply to this chapter.

“(2) Actions to vacate—Either party to grievance arbitration under this chapter may file an action pursuant to section 91110(a) to enforce the arbitration process or to vacate or enforce an arbitration award. An arbitration award may only be vacated on the grounds, and pursuant to the standards, that would be applicable to an action to vacate an arbitration award brought in the Federal courts under section 301 of the Labor Management Relations Act, 1947 (29 U.S.C. 185).

“91109. Prohibition on striking and other activities

“(a) In general—Employees of the Corporation are prohibited from—

“(1) participating in a strike, work stoppage, or slowdown against the Corporation; or

“(2) picketing the Corporation in a labor-management dispute if such picketing interferes with the Corporation’s operations.

“(b) Termination—An employee who participates in an activity described in subsection (a) shall be terminated from employment with the Corporation.

“91110. Legal action

“(a) In general—Consistent with the requirements of section 90315, actions to enforce the arbitration process or vacate or enforce an arbitral award under section 91108(g)(2) between the Corporation and a labor organization representing Corporation employees, or between any such labor organizations, may be brought in any district court of the United States having jurisdiction of the parties, without respect to the amount in controversy.

“(b) Authorized acts—A labor organization recognized under section 91105 and the Corporation shall be bound by the authorized acts of their agents. Any labor organization may sue or be sued as an entity and on behalf of the employees whom it represents in the courts of the United States. Any money judgment against a labor organization in a district court of the United States shall be enforceable only against the organization as an entity and against its assets, and shall not be enforceable against any individual member or his assets.

“(c) Jurisdiction—Under this subtitle, for the purposes of actions and proceedings by or against labor organizations in the district courts of the United States, district courts shall be deemed to have jurisdiction of a labor organization—

“(1) in the district in which such organization maintains its principal offices; or

“(2) in any district in which its duly authorized officers or agents are engaged in representing or acting for employee members.

“(d) Summons or subpoena—The service of summons, subpoena, or other legal process of any court of the United States upon an officer or agent of a labor organization, in his capacity as such, shall constitute service upon the labor organization.

“913 Other Matters

“91301. Termination of Government functions

“Except as otherwise provided in this subtitle, whenever any function vested by law in the Secretary, Administrator, Department of Transportation, or FAA has been transferred to the Corporation pursuant to this subtitle, it shall no longer be a function of the Government.

“91302. Savings provisions

“(a) Completed Administrative Actions

“(1) In general—Completed administrative actions of the Department of Transportation or the FAA shall not be affected by the enactment of this subtitle, but shall continue in effect according to their terms until amended, modified, superseded, terminated, set aside, or revoked in accordance with law.

“(2) Completed administrative action defined—In paragraph (1), the term “completed administrative action” includes orders, determinations, rules, regulations, personnel actions, permits, agreements, grants, contracts, certificates, licenses, registrations, and privileges.

“(b) Continued effectiveness of pending actions

“(1) Pending actions and proceedings—The provisions of this subtitle shall not affect any proceedings of the Department of Transportation or the FAA pending on the date of transfer, including—

“(A) notices of proposed rulemaking related to activities of the FAA, without regard to whether the activities are transferred to the Corporation; and

“(B) an application for a license, a permit, a certificate, or financial assistance pending on the date of transfer before the Department of Transportation or the FAA, or any officer thereof, with respect to activities of the Department or the FAA, without regard to whether the activities are transferred to the Corporation.

“(2) Effect of orders—Orders issued in any proceedings referred to in paragraph (1) shall continue in effect until modified, terminated, superseded, or revoked in accordance with law. Nothing in this subsection prohibits the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this subtitle had not been enacted.

“(c) Continued effectiveness of administrative and judicial actions—No causes of action or actions by or against the Department of Transportation or the FAA arising from acts or omissions occurring before the date of transfer shall abate by reason of the enactment of this subtitle.

“(d) Substitution or addition of parties to judicial actions—Except as provided by subsection (e)(2), if, on the date of transfer, the Department of Transportation or the FAA, or any officer thereof in the officer’s capacity, is a party to an action and, under this subtitle, the performance of that activity of the Department, FAA, or officer is transferred to the Corporation, such action shall be continued with the CEO substituted or added as a party.

“(e) Air traffic services liabilities and obligations

“(1) Assumption of obligations—Except as provided in paragraph (2), the Corporation shall assume—

“(A) all obligations (tangible and incorporeal, present, and executory) associated with the air traffic services transferred under this subtitle on the date of transfer, including leases, permits, licenses, contracts, agreements, accounts receivable, and accounts payable; and

“(B) all claims and liabilities associated with the air traffic services transferred under this subtitle pending on the date of transfer.

“(2) Claims and actions that remain liabilities of United States

“(A) Claims and actions arising in tort—All claims and actions arising in tort pending on the date of transfer and arising out of the alleged acts or omissions of employees of the FAA who transfer to the Corporation shall remain liabilities of the United States.

“(B) Contingent liabilities—All contingent liabilities existing on the date of transfer shall remain with the United States, including (without limitation) environmental and intellectual property infringement claims.

“(C) Other claims and liabilities—All other claims and liabilities arising out of the alleged acts or omissions of the United States before the date of transfer (including those arising under an agreement referred to in section 91105(c)) whose remedy is financial or monetary in nature shall remain liabilities of the United States.

“(D) Access of Federal representatives to employees and records—The Secretary shall ensure that, before the date of transfer, the Corporation has agreed to allow representatives of the Secretary and the Attorney General such access as they may require to employees and records of the Corporation for all purposes relating to the handling of such claims under this paragraph.

“915 Congressional Oversight of Air Traffic Services Provider

“91501. Inspector General reports to Congress on transition

“(a) In general—Before the date of transfer, the Inspector General of the Department of Transportation shall submit regular reports to Congress on the progress of the preparation of the Department of Transportation and of the Corporation for the transfer of operational control of air traffic services under this subtitle.

“(b) Timing—The reports described in subsection (a) shall be submitted, at a minimum, on a quarterly basis until the date of transfer.

“(c) Sunset—This section shall expire on the date of transfer.

“(d) Statutory construction—Nothing in this section may be construed to limit the authority of the Inspector General of the Department of Transportation to conduct oversight of the Department of Transportation’s interactions with the Corporation after the date of transfer.

“91502. State of air traffic services

added “(a) Report—Not later than 2 years after the date of transfer, and on or before March 31 of every second year beginning thereafter—

removed “(a) Report—Not later than 2 years after the date of transfer, and every 2 years thereafter—

“(1) the Corporation shall submit to the Secretary a report on the state of air traffic services; and

“(2) the Secretary shall submit the report to Congress.

“(b) Contents—The report shall include, as appropriate, information on—

“(1) access to airports and services for all users, including access with respect to rural areas;

“(2) charges and fees, safety, and areas in which the Corporation has identified efficiencies in the system, including staffing and facilities realignment or consolidation;

“(3) the safe, fair, and timely provision of air traffic services by the Corporation;

“(4) the sound operation of the Corporation and the impact of any activities of the Corporation on United States airspace;

“(5) the cooperation and interaction of the Corporation with the Department of Defense, the Department of Transportation, the FAA, and other Federal departments and agencies, including any agreements between the Corporation and those departments and agencies;

“(6) compliance of the Corporation with United States obligations under international treaties and agreements;

“(7) compliance of the Corporation with Federal safety, environmental, corporate, and tax laws and regulations;

“(8) compliance of the Corporation with Federal laws related to employees of the Corporation;

“(9) follow-up on Inspector General and Government Accountability Office audits, investigations, and reports involving the Corporation, including any recommendations included in such reports;

“(10) compliance of the Corporation with other Federal requirements, including requirements relating to public disclosure, publication of fees, annual reporting, and establishment of the Advisory Board and other committees;

“(11) actions and activities of the CEO and Board and their adherence to their duties and responsibilities;

“(12) compliance of the Corporation with requirements related to rural, remote, and small community air traffic services;

“(13) compliance of the Corporation with requirements related to claims of incorrect fees and resolution of fee disputes;

“(14) compliance of the Corporation with requirements to report safety violations to the FAA, cooperate with FAA investigations, and assist in FAA enforcement actions;

added “(15) actions in times of emergencies and times of war;

added “(16) progress made by the Corporation in implementing system modernization efforts and ongoing capital investments, plans of the Corporation for next steps in implementing such efforts and investments, current efficiencies and benefits of previously implemented systems improvements, and current needs for improvement; and

added “(17) such other matters as the Secretary, in consultation with the Administrator, determines appropriate.

removed “(15) actions in times of emergencies and times of war; and

removed “(16) such other matters as the Secretary, in consultation with the Administrator, determines appropriate.

“91503. Submission of annual financial report

“(a) Annual financial report

“(1) In general—Not later than 1 year after the date of transfer, and annually thereafter, the Corporation shall publish a report on the activities of the Corporation during the prior year.

“(2) Contents; availability—The annual report shall contain financial and operational performance information regarding the Corporation, as well as information on the compensation (including bonuses and other financial incentives) of each Director, the CEO, and officers of the Corporation, and shall be made publicly available.

“(3) Propriety information—The Corporation shall ensure that any propriety information that may be contained in the annual report is not made public.

“(b) Submission—Each year, on the date the annual report required pursuant to subsection (a) is published—

“(1) the Corporation shall submit the report to the Secretary; and

“(2) the Secretary shall submit the report to Congress.

“91504. Submission of strategic plan

“(a) Submission of strategic plan—Not later than 15 days after the initial strategic plan is approved by the Board pursuant to section 90308(c)—

“(1) the Corporation shall submit the strategic plan to the Secretary; and

“(2) the Secretary shall submit the strategic plan to Congress.

“(b) Updates to strategic plan—Not later than 15 days after an update to the strategic plan is approved by the Board pursuant to section 90308(c)—

“(1) the Corporation shall submit the updated strategic plan to the Secretary; and

added “(2) the Secretary shall submit the updated strategic plan to Congress.

added “91505. Submission of annual action plan

added “(a) In general—The Corporation shall develop an annual report on the goals of the Corporation for the following year.

added “(b) Contents—The report shall contain goals for the Corporation to meet that are specific, tangible, and actionable, in order to expedite improvements to, and maintain the integrity of, air traffic services provided by the Corporation.

added “(c) Submission—Not later than 1 year after the date of transfer, and annually thereafter—

added “(1) the Corporation shall submit the report to the Secretary; and

added “(2) the Secretary shall submit the report to Congress.

added “(d) Public availability—The Corporation shall publish, and make available to the public, each report submitted to the Secretary under subsection (c).

added “(e) Proprietary information—In carrying out this section, the Corporation may take necessary actions to prevent the public disclosure of proprietary information.”

removed “(2) the Secretary shall submit the updated strategic plan to Congress.”

changed Section 2110(d)(1)(A)(ii) 2110 of the FAA Extension, Safety, and Security Act of 2016 (49 U.S.C. 44718 note) is amended—

added “(a) Application

added “(1) In general—Except as provided by paragraph (2), not later than 1 year after the date of enactment of the 21st Century AIRR Act or the availability of the database developed by the Administrator of the Federal Aviation Administration pursuant to subsection (c), whichever is later, all covered towers shall be either—

added “(A) clearly marked consistent with applicable guidance in the advisory circular of the Federal Aviation Administration issued December 4, 2015 (AC 70/7460–IL); or

added “(B) included in the database described in subsection (c).

added “(2) Meteorological evaluation tower—A covered tower that is a meteorological evaluation tower shall be subject to the requirements of paragraphs (1)(A) and (1)(B).”

added “(VI) is located within the right-of-way of a rail carrier, including within the boundaries of a rail yard, and is used for a railroad purpose;

added “(VII) is determined by the Administrator to pose no hazard to air navigation; or

added “(VIII) has already mitigated any hazard to aviation safety in accordance with Federal Aviation Administration guidance or as otherwise approved by the Administrator.”

added “(1) develop a database that contains the location and height of each covered tower that, pursuant to subsection (a), the owner or operator of such tower elects not to mark, except that meteorological evaluation towers shall be marked and contained in the database;”

added “(5) ensure that the tower information in the database is de-identified and that the information only includes the location and height of covered towers; and

added “(6) make the database available for use not later than 1 year after the date of enactment of the 21st Century AIRR Act.”

removed “(VI) is located within the right-of-way of a rail carrier, including within the boundaries of a rail yard, and is used for a railroad purpose.”

“455 Unmanned Aircraft Systems

“45501. Definitions

“In this chapter, the following definitions apply:

“(1) Aerial data collection—The term “aerial data collection” means the gathering of data by a device aboard an unmanned aircraft during flight, including imagery, sensing, and measurement by such device.

“(2) Arctic—The term “Arctic” means the United States zone of the Chukchi Sea, Beaufort Sea, and Bering Sea north of the Aleutian chain.

“(3) Certificate of waiver; certificate of authorization—The terms “certificate of waiver” and “certificate of authorization” mean a Federal Aviation Administration grant of approval for a specific flight operation.

“(4) CNS—The term “CNS” means a communication, navigation, or surveillance system or service.

“(5) Model Aircraft—the term “model aircraft” means an unmanned aircraft that is—

“(A) capable of sustained flight in the atmosphere;

“(B) flown within visual line of sight of the person operating the aircraft; and

“(C) flown for hobby or recreational purposes.

“(6) Permanent areas—The term “permanent areas” means areas on land or water that provide for launch, recovery, and operation of small unmanned aircraft.

“(7) Public unmanned aircraft system—The term “public unmanned aircraft system” means an unmanned aircraft system that meets the qualifications and conditions required for operation of a public aircraft (as defined in section 40102(a)).

“(8) Sense-and-avoid capability—The term “sense-and-avoid capability” means the capability of an unmanned aircraft to remain a safe distance from and to avoid collisions with other airborne aircraft.

“(9) Small unmanned aircraft—The term “small unmanned aircraft” means an unmanned aircraft weighing less than 55 pounds, including everything that is on board the aircraft.

“(10) Unmanned aircraft—The term “unmanned aircraft” means an aircraft that is operated without the possibility of direct human intervention from within or on the aircraft.

“(11) Unmanned aircraft system—The term “unmanned aircraft system” means an unmanned aircraft and associated elements (including communication links and the components that control the unmanned aircraft) that are required for the pilot in command to operate safely and efficiently in the national airspace system.

“(12) UTM—The term “UTM” means an unmanned aircraft traffic management system or service.

“45502. Integration of civil unmanned aircraft systems into national airspace system

“(a) Required Planning for Integration

“(1) Comprehensive plan—Not later than November 10, 2012, the Secretary of Transportation, in consultation with representatives of the aviation industry, Federal agencies that employ unmanned aircraft systems technology in the national airspace system, and the unmanned aircraft systems industry, shall develop a comprehensive plan to safely accelerate the integration of civil unmanned aircraft systems into the national airspace system.

“(2) Contents of plan—The plan required under paragraph (1) shall contain, at a minimum, recommendations or projections on—

“(A) the rulemaking to be conducted under subsection (b), with specific recommendations on how the rulemaking will—

“(i) define the acceptable standards for operation and certification of civil unmanned aircraft systems;

“(ii) ensure that any civil unmanned aircraft system includes a sense-and-avoid capability; and

“(iii) establish standards and requirements for the operator and pilot of a civil unmanned aircraft system, including standards and requirements for registration and licensing;

“(B) the best methods to enhance the technologies and subsystems necessary to achieve the safe and routine operation of civil unmanned aircraft systems in the national airspace system;

“(C) a phased-in approach to the integration of civil unmanned aircraft systems into the national airspace system;

“(D) a timeline for the phased-in approach described under subparagraph (C);

“(E) creation of a safe airspace designation for cooperative manned and unmanned flight operations in the national airspace system;

“(F) establishment of a process to develop certification, flight standards, and air traffic requirements for civil unmanned aircraft systems at test ranges where such systems are subject to testing;

“(G) the best methods to ensure the safe operation of civil unmanned aircraft systems and public unmanned aircraft systems simultaneously in the national airspace system; and

“(H) incorporation of the plan into the annual NextGen Implementation Plan document (or any successor document) of the Federal Aviation Administration.

“(3) Deadline—The plan required under paragraph (1) shall provide for the safe integration of civil unmanned aircraft systems into the national airspace system as soon as practicable, but not later than September 30, 2015.

“(4) Report to congress—Not later than February 14, 2013, the Secretary shall submit to Congress a copy of the plan required under paragraph (1).

“(5) Roadmap—Not later than February 14, 2013, the Secretary shall approve and make available in print and on the Administration’s internet website a 5-year roadmap for the introduction of civil unmanned aircraft systems into the national airspace system, as coordinated by the Unmanned Aircraft Program Office of the Administration. The Secretary shall update the roadmap annually.

“(b) Rulemaking—Not later than 18 months after the date on which the plan required under subsection (a)(1) is submitted to Congress under subsection (a)(4), the Secretary shall publish in the Federal Register—

“(1) a final rule on small unmanned aircraft systems that will allow for civil operation of such systems in the national airspace system, to the extent the systems do not meet the requirements for expedited operational authorization under section 45508;

“(2) a notice of proposed rulemaking to implement the recommendations of the plan required under subsection (a)(1), with the final rule to be published not later than 16 months after the date of publication of the notice; and

“(3) an update to the Administration’s most recent policy statement on unmanned aircraft systems, contained in Docket No. FAA–2006–25714.

“(c) Expanding Use of Unmanned Aircraft Systems in Arctic

“(1) In general—Not later than August 12, 2012, the Secretary shall develop a plan and initiate a process to work with relevant Federal agencies and national and international communities to designate permanent areas in the Arctic where small unmanned aircraft may operate 24 hours per day for research and commercial purposes. The plan for operations in these permanent areas shall include the development of processes to facilitate the safe operation of unmanned aircraft beyond line of sight. Such areas shall enable over-water flights from the surface to at least 2,000 feet in altitude, with ingress and egress routes from selected coastal launch sites.

“(2) Agreements—To implement the plan under paragraph (1), the Secretary may enter into an agreement with relevant national and international communities.

“(3) Aircraft approval—Not later than 1 year after the entry into force of an agreement necessary to effectuate the purposes of this subsection, the Secretary shall work with relevant national and international communities to establish and implement a process, or may apply an applicable process already established, for approving the use of unmanned aircraft in the designated permanent areas in the Arctic without regard to whether an unmanned aircraft is used as a public aircraft, a civil aircraft, or a model aircraft.

“45503. Risk-based permitting of unmanned aircraft systems

“(a) In general—Not later than 120 days after the date of enactment of this section, the Administrator of the Federal Aviation Administration shall establish procedures for issuing permits under this section with respect to certain unmanned aircraft systems and operations thereof.

“(b) Permitting standards—Upon the submission of an application in accordance with subsection (d), the Administrator shall issue a permit with respect to the proposed operation of an unmanned aircraft system if the Administrator determines that the unmanned aircraft system and the proposed operation achieve a level of safety that is equivalent to—

“(1) other unmanned aircraft systems and operations permitted under regulation, exemption, or other authority granted by the Administrator; or

“(2) any other aircraft operation approved by the Administrator with similar risk characteristics or profiles.

“(c) Safety criteria for consideration—In determining whether a proposed operation meets the standards described in subsection (b), the Administrator shall consider the following safety criteria:

“(1) The kinetic energy of the unmanned aircraft system.

“(2) The location of the proposed operation, including the proximity to—

“(A) structures;

“(B) congested areas;

“(C) special-use airspace; and

“(D) persons on the ground.

“(3) The nature of the operation, including any proposed risk mitigation.

“(4) Any known hazard of the proposed operation and the severity and likelihood of such hazard.

“(5) Any known failure modes of the unmanned aircraft system, failure mode effects and criticality, and any mitigating features or capabilities.

“(6) The operational history of relevant technologies, if available.

“(7) Any history of civil penalties or certificate actions by the Administrator against the applicant seeking the permit.

“(8) Any other safety criteria the Administrator considers appropriate.

“(d) Application—An application under this section shall include evidence that the unmanned aircraft system and the proposed operation thereof meet the standards described in subsection (b) based on the criteria described in subsection (c).

“(e) Scope of permit—A permit issued under this section shall—

“(1) be valid for 5 years;

“(2) constitute approval of both the airworthiness of the unmanned aircraft system and the proposed operation of such system;

“(3) be renewable for additional 5-year periods; and

“(4) contain any terms necessary to ensure aviation safety.

“(f) Notice—Not later than 120 days after the Administrator receives a complete application under subsection (d), the Administrator shall provide the applicant written notice of a decision to approve or disapprove of the application or to request a modification of the application that is necessary for approval of the application.

“(g) Permitting process—The Administrator shall issue a permit under this section without regard to subsections (b) through (d) of section 553 of title 5 and chapter 35 of title 44 if the Administrator determines that the operation permitted will not occur near a congested area.

“(h) Exemption from certain requirements—To the extent consistent with aviation safety, the Administrator may exempt applicants under this section from paragraphs (1) through (3) of section 44711(a).

“(i) Withdrawal—The Administrator may, at any time, modify or withdraw a permit issued under this section.

“(j) Applicability—This section shall not apply to small unmanned aircraft systems and operations authorized by the final rule on small unmanned aircraft systems issued pursuant to section 45502(b)(1).

“(k) Expedited review—The Administrator shall review and act upon applications under this section on an expedited basis for unmanned aircraft systems and operations thereof to be used primarily in, or primarily in direct support of, emergency preparedness, emergency response, or disaster recovery efforts, including efforts in connection with natural disasters and severe weather events.

“45504. Public unmanned aircraft systems

“(a) Guidance—Not later than November 10, 2012, the Secretary of Transportation shall issue guidance regarding the operation of public unmanned aircraft systems to—

“(1) expedite the issuance of a certificate of authorization process;

“(2) provide for a collaborative process with public agencies to allow for an incremental expansion of access to the national airspace system as technology matures and the necessary safety analysis and data become available, and until standards are completed and technology issues are resolved;

“(3) facilitate the capability of public agencies to develop and use test ranges, subject to operating restrictions required by the Federal Aviation Administration, to test and operate unmanned aircraft systems; and

“(4) provide guidance on a public entity’s responsibility when operating an unmanned aircraft without a civil airworthiness certificate issued by the Administration.

“(b) Standards for Operation and Certification—Not later than December 31, 2015, the Administrator shall develop and implement operational and certification requirements for the operation of public unmanned aircraft systems in the national airspace system.

“(c) Agreements With Government Agencies

“(1) In general—Not later than May 14, 2012, the Secretary shall enter into agreements with appropriate government agencies to simplify the process for issuing certificates of waiver or authorization with respect to applications seeking authorization to operate public unmanned aircraft systems in the national airspace system.

“(2) Contents—The agreements shall—

“(A) with respect to an application described in paragraph (1)—

“(i) provide for an expedited review of the application;

“(ii) require a decision by the Administrator on approval or disapproval within 60 business days of the date of submission of the application; and

“(iii) allow for an expedited appeal if the application is disapproved;

“(B) allow for a one-time approval of similar operations carried out during a fixed period of time; and

“(C) allow a government public safety agency to operate unmanned aircraft weighing 4.4 pounds or less, if operated—

“(i) within the line of sight of the operator;

“(ii) less than 400 feet above the ground;

“(iii) during daylight conditions;

“(iv) within Class G airspace; and

“(v) outside of 5 statute miles from any airport, heliport, seaplane base, spaceport, or other location with aviation activities.

“45505. Special rules for certain unmanned aircraft systems

“(a) In General—Notwithstanding any other requirement of this subtitle, and not later than August 12, 2012, the Secretary of Transportation shall determine if certain unmanned aircraft systems may operate safely in the national airspace system before completion of the plan and rulemaking required by section 45502 or the guidance required under section 45504.

“(b) Assessment of Unmanned Aircraft Systems—In making the determination under subsection (a), the Secretary shall determine, at a minimum—

“(1) which types of unmanned aircraft systems, if any, as a result of their size, weight, speed, operational capability, proximity to airports and populated areas, and operation within visual line of sight do not create a hazard to users of the national airspace system or the public or pose a threat to national security; and

“(2) whether a certificate of waiver, certificate of authorization, or airworthiness certification under section 44704 is required for the operation of unmanned aircraft systems identified under paragraph (1).

“(c) Requirements for Safe Operation—If the Secretary determines under this section that certain unmanned aircraft systems may operate safely in the national airspace system, the Secretary shall establish requirements for the safe operation of such aircraft systems in the national airspace system.

“45506. Certification of new air navigation facilities for unmanned aircraft and other aircraft

“(a) In general—Not later than 18 months after the date of enactment of this section, and notwithstanding section 2208 of the FAA Extension, Safety, and Security Act of 2016 (49 U.S.C. 40101 note), the Administrator of the Federal Aviation Administration shall initiate a rulemaking to establish procedures for issuing air navigation facility certificates pursuant to section 44702 to operators of—

“(1) UTM for unmanned aircraft operations that occur primarily or exclusively in airspace 400 feet above ground level and below; and

“(2) low-altitude CNS for aircraft operations that occur primarily or exclusively in airspace 400 feet above ground level and below.

“(b) Minimum requirements—In issuing a final rule pursuant to subsection (a), the Administrator, at a minimum, shall provide for the following:

“(1) Certification standards—The Administrator shall issue an air navigation facility certificate under the final rule if the Administrator determines that a UTM or low-altitude CNS facilitates or improves the safety of unmanned aircraft or other aircraft operations that occur primarily or exclusively in airspace 400 feet above ground level and below, including operations conducted under a waiver issued pursuant to subpart D of part 107 of title 14, Code of Federal Regulations.

“(2) Criteria for consideration—In determining whether a UTM or low-altitude CNS meets the standard described in paragraph (1), the Administrator shall, as appropriate, consider—

“(A) protection of persons and property on the ground;

“(B) remote identification of aircraft;

“(C) collision avoidance with respect to obstacles and aircraft;

“(D) deconfliction of aircraft trajectories;

“(E) safe and reliable interoperability or noninterference with air traffic control and other systems operated in the national airspace system;

“(F) detection of noncooperative aircraft;

“(G) geographic and local factors;

“(H) aircraft equipage; and

“(I) qualifications, if any, necessary to operate the UTM or low-altitude CNS.

“(3) Application—An application for an air navigation facility certificate under the final rule shall include evidence that the UTM or low-altitude CNS meets the standard described in paragraph (1) based on the criteria described in paragraph (2).

“(4) Scope of certificate—The Administrator shall ensure that an air navigation facility certificate issued under the final rule—

“(A) constitutes approval of the UTM or low-altitude CNS for the duration of the term of the certificate;

“(B) constitutes authorization to operate the UTM or low-altitude CNS for the duration of the term of the certificate; and

“(C) contains such limitations and conditions as may be necessary to ensure aviation safety.

“(5) Notice—Not later than 120 days after the Administrator receives a complete application under the final rule, the Administrator shall provide the applicant with a written approval, disapproval, or request to modify the application.

“(6) Low risk areas—Under the final rule, the Administrator shall establish expedited procedures for approval of UTM or low-altitude CNS operated in—

“(A) airspace away from congested areas; or

“(B) other airspace above areas in which operations of unmanned aircraft pose very low risk.

“(7) Exemption from certain requirements—To the extent consistent with aviation safety, the Administrator may exempt applicants under the final rule from requirements under sections 44702, 44703, and 44711.

“(8) Certificate modifications and revocations—A certificate issued under the final rule may, at any time, be modified or revoked by the Administrator.

“(c) Consultation—In carrying out this section, the Administrator shall consult with other Federal agencies, as appropriate.

“45507. Special rules for certain UTM and low-altitude CNS

“(a) In general—Notwithstanding any other requirement of this chapter, and not later than 120 days after the date of enactment of this section, the Secretary of Transportation shall determine if certain UTM and low-altitude CNS may operate safely in the national airspace system before completion of the rulemaking required by section 45506.

“(b) Assessment of UTM and low-Altitude CNS—In making the determination under subsection (a), the Secretary shall determine, at a minimum, which types of UTM and low-altitude CNS, if any, as a result of their operational capabilities, reliability, intended use, and areas of operation, and the characteristics of the aircraft involved, do not create a hazard to users of the national airspace system or the public.

“(c) Requirements for safe operation—If the Secretary determines that certain UTM and low-altitude CNS may operate safely in the national airspace system, the Secretary shall establish requirements for their safe operation in the national airspace system.

“(d) Expedited procedures—The Secretary shall provide expedited procedures for reviewing and approving UTM or low-altitude CNS operated to monitor or control aircraft operated primarily or exclusively in airspace above—

“(1) croplands;

“(2) areas other than congested areas; and

“(3) other areas in which the operation of unmanned aircraft poses very low risk.

“(e) Consultation—In carrying out this section, the Administrator shall consult with other Federal agencies, as appropriate.

“45508. Operation of small unmanned aircraft

“(a) Exemption and certificate of waiver or authorization for certain operations—Not later than 270 days after the date of enactment of this section, the Administrator of the Federal Aviation Administration shall establish a procedure for granting an exemption and issuing a certificate of waiver or authorization for the operation of a small unmanned aircraft system in United States airspace for the purposes described in section 45501(1).

“(b) Operation of exemption and certificate of waiver or authorization

“(1) Exemption—An exemption granted under this section shall—

“(A) exempt the operator of a small unmanned aircraft from the provisions of title 14, Code of Federal Regulations, that are exempted in Exemption No. 11687, issued on May 26, 2015, Regulatory Docket Number FAA–2015–0117, or in a subsequent exemption; and

“(B) contain conditions and limitations described in paragraphs 3 through 31 of such Exemption No. 11687, or conditions and limitations of a subsequent exemption.

“(2) Certificate of waiver or authorization—A certificate of waiver or authorization issued under this section shall allow the operation of small unmanned aircraft according to—

“(A) the standard provisions and air traffic control special provisions of the certificate of waiver or authorization FAA Form 7711–1 (7–74); or

“(B) the standard and special provisions of a subsequent certificate of waiver or authorization.

“(c) Notice to Administrator—Before operating a small unmanned aircraft pursuant to a certificate of waiver or authorization granted under this section, the operator shall provide written notice to the Administrator, in a form and manner specified by the Administrator, that contains such information and assurances as the Administrator determines necessary in the interest of aviation safety and the efficiency of the national airspace system, including a certification that the operator has read, understands, and will comply with all terms, conditions, and limitations of the certificate of waiver or authorization.

“(d) Waiver of airworthiness certificate—Notwithstanding section 44711(a)(1), the holder of a certificate of waiver or authorization granted under this section may operate a small unmanned aircraft under the terms, conditions, and limitations of such certificate without an airworthiness certificate.

“(e) Procedure—The granting of an exemption or the issuance of a certificate of waiver or authorization, or any other action authorized by this section, shall be made without regard to—

“(1) section 553 of title 5; or

“(2) chapter 35 of title 44.

“(f) Statutory construction—Nothing in this section may be construed to—

“(1) affect the issuance of a rule by or any other activity of the Secretary of Transportation or the Administrator under any other provision of law; or

“(2) invalidate an exemption or certificate of waiver or authorization issued by the Administrator before the date of enactment of this section.

“(g) Effective periods—An exemption or certificate of waiver or authorization issued under this section, or an amendment of such exemption or certificate, shall cease to be valid on the effective date of a final rule on small unmanned aircraft systems issued under section 45502(b)(1).

“45509. Special rules for model aircraft

“(a) In General—Notwithstanding any other provision of law relating to the incorporation of unmanned aircraft systems into Federal Aviation Administration plans and policies, including this subtitle, the Administrator of the Federal Aviation Administration may not promulgate any rule or regulation regarding a model aircraft or an aircraft being developed as a model aircraft (other than the registration of certain model aircraft pursuant to section 44103), if—

“(1) the aircraft is flown strictly for hobby or recreational use;

“(2) the aircraft is operated in accordance with a community-based set of safety guidelines and within the programming of a community-based organization;

“(3) the aircraft is limited to not more than 55 pounds unless otherwise certified through a design, construction, inspection, flight test, and operational safety program administered by a community-based organization;

“(4) the aircraft is operated in a manner that does not interfere with and gives way to any manned aircraft;

“(5) the aircraft is not operated over or within the property of a fixed site facility that operates amusement rides available for use by the general public or the property extending 500 lateral feet beyond the perimeter of such facility unless the operation is authorized by the owner of the amusement facility; and

“(6) when flown within 5 miles of an airport, the operator of the aircraft provides the airport operator and the airport air traffic control tower (when an air traffic facility is located at the airport) with prior notice of the operation (model aircraft operators flying from a permanent location within 5 miles of an airport should establish a mutually agreed upon operating procedure with the airport operator and the airport air traffic control tower (when an air traffic facility is located at the airport)).

“(b) Commercial operation for instructional or educational purposes—A flight of an unmanned aircraft shall be treated as a flight of a model aircraft for purposes of subsection (a) (regardless of any compensation, reimbursement, or other consideration exchanged or incidental economic benefit gained in the course of planning, operating, or supervising the flight), if the flight is—

“(1) conducted for instructional or educational purposes; and

“(2) operated or supervised by a member of a community-based organization recognized pursuant to subsection (e).

“(c) Statutory construction—Nothing in this section may be construed to limit the authority of the Administrator to pursue enforcement action against persons operating model aircraft who endanger the safety of the national airspace system.

“(d) Community-Based organization defined—In this section, the term “community-based organization” means an entity that—

“(1) is described in section 501(c)(3) of the Internal Revenue Code of 1986;

“(2) is exempt from tax under section 501(a) of the Internal Revenue Code of 1986;

“(3) the mission of which is demonstrably the furtherance of model aviation;

“(4) provides a comprehensive set of safety guidelines for all aspects of model aviation addressing the assembly and operation of model aircraft and that emphasize safe aeromodeling operations within the national airspace system and the protection and safety of individuals and property on the ground;

“(5) provides programming and support for any local charter organizations, affiliates, or clubs; and

“(6) provides assistance and support in the development and operation of locally designated model aircraft flying sites.

“(e) Recognition of community-Based organizations—Not later than 180 days after the date of enactment of this section, the Administrator shall establish, and make available to the public, a process for recognizing community-based organizations that meet the eligibility criteria under subsection (d).

“45510. Carriage of property for compensation or hire

“(a) In general—Not later than 1 year after the date of enactment of this section, the Secretary of Transportation shall issue a final rule authorizing the carriage of property by operators of small unmanned aircraft systems for compensation or hire within the United States.

“(b) Contents—The final rule required under subsection (a) shall provide for the following:

“(1) Small UAS air carrier certificate—The Administrator of the Federal Aviation Administration, at the direction of the Secretary, shall establish a small UAS air carrier certificate for persons that undertake directly, or by lease or other arrangement, the operation of small unmanned aircraft systems to carry property in air transportation, including commercial fleet operations with highly automated unmanned aircraft systems. The requirements to obtain a small UAS air carrier certificate shall—

“(A) account for the unique characteristics of highly automated small unmanned aircraft systems; and

“(B) include only those obligations necessary for the safe operation of small unmanned aircraft systems.

“(2) Small UAS air carrier certification process—The Administrator, at the direction of the Secretary, shall establish a process for the issuance of a small UAS air carrier certificate described in paragraph (1) that is streamlined, simple, performance-based, and risk-based. Such certification process shall consider—

“(A) safety and the mitigation of operational risks from highly automated small unmanned aircraft systems to the safety of other aircraft, and persons and property on the ground;

“(B) the safety and reliability of highly automated small unmanned aircraft system design, including technological capabilities and operational limitations to mitigate such risks; and

“(C) the competencies and compliance programs of manufacturers, operators, and companies that both manufacture and operate small unmanned aircraft systems and components.

“(3) Small UAS air carrier classification—The Secretary shall develop a classification system for small unmanned aircraft systems air carriers to establish economic authority for the carriage of property by small unmanned aircraft systems for compensation or hire. Such classification shall only require—

“(A) registration with the Department of Transportation; and

changed “(B) a valid small UAS air carrier certificate as described in paragraph (1).”(1).

added “45511. Micro UAS operations

added “(a) In general—Not later than 60 days after the date of enactment of this section, the Administrator of the Federal Aviation Administration shall charter an aviation rulemaking advisory committee to develop recommendations for regulations under which any person may operate a micro unmanned aircraft system, the aircraft component of which weighs 4.4 pounds or less, including payload, without the person operating the system being required to pass any airman certification requirement, including any requirements under section 44703, part 61 of title 14, Code of Federal Regulations, or any other rule or regulation relating to airman certification.

added “(b) Considerations—In developing recommendations for the operation of micro unmanned aircraft systems under subsection (a), the members of the aviation rulemaking advisory committee shall consider rules for operation of such systems—

added “(1) at an altitude of less than 400 feet above ground level;

added “(2) with an airspeed of not greater than 40 knots;

added “(3) within the visual line of sight of the operator;

added “(4) during the hours between sunrise and sunset;

added “(5) by an operator who has passed an aeronautical knowledge and safety test administered by the Federal Aviation Administration online specifically for the operation of micro unmanned aircraft systems, with such test being of a length and difficulty that acknowledges the reduced operational complexity and low risk of micro unmanned aircraft systems;

added “(6) not over unprotected persons uninvolved in its operation; and

added “(7) at least 5 statute miles from the geographic center of a tower-controlled airport or airport denoted on a current Federal Aviation Administration-published aeronautical chart, except that a micro unmanned aircraft system may be operated closer than 5 statute miles to the airport if the operator—

added “(A) provides prior notice to the airport operator; and

added “(B) receives, for a tower-controlled airport, prior approval from the air traffic control facility located at the airport.

added “(c) Consultation

added “(1) In general—In developing recommendations for recommended regulations under subsection (a), the aviation rulemaking advisory committee shall consult with—

added “(A) unmanned aircraft systems stakeholders, including manufacturers of micro unmanned aircraft systems;

added “(B) community-based aviation organizations;

added “(C) the Center of Excellence for Unmanned Aircraft Systems; and

added “(D) appropriate Federal agencies.

added “(2) FACA—The Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to an aviation rulemaking advisory committee chartered under this section.

added “(d) Rulemaking—Not later than 180 days after the date of receipt of the recommendations under subsection (a), the Administrator shall issue regulations incorporating recommendations of the aviation rulemaking advisory committee that provide for the operation of micro unmanned aircraft systems in the United States—

added “(1) without an airman certificate; and

added “(2) without an airworthiness certificate for the associated unmanned aircraft.

added “(e) Scope of regulations

added “(1) In general—In determining whether a person may operate an unmanned aircraft system under 1 or more of the circumstances described under paragraphs (1) through (3) of subsection (b), the Administrator shall use a risk-based approach and consider, at a minimum, the physical and functional characteristics of the unmanned aircraft system.

added “(2) Limitation—The Administrator may only issue regulations under this section for unmanned aircraft systems that the Administrator determines may be operated safely in the national airspace system pursuant to those regulations.

added “(f) Rules of construction—Nothing in this section may be construed—

added “(1) to prohibit a person from operating an unmanned aircraft system under a circumstance described under paragraphs (1) through (3) of subsection (b) if—

added “(A) the circumstance is allowed by regulations issued under this section; and

added “(B) the person operates the unmanned aircraft system in a manner prescribed by the regulations; or

added “(2) to limit or affect in any way the Administrator’s authority to conduct a rulemaking, make a determination, or carry out any activity related to unmanned aircraft or unmanned aircraft systems under any other provision of law.”

“(1) Size—On the date of submission of the relevant application under subsection (b), the airport serving the community or consortium—

“(A) is not larger than a small hub airport, as determined using the Department of Transportation’s most recently published classification; and

“(B) has—

“(i) insufficient air carrier service; or

“(ii) unreasonably high air fares.”

“(E) the assistance will be used to help restore scheduled passenger air service that has been terminated;”

changed “(2) Authorization of appropriations—There is authorized to be appropriated to the Secretary $6,000,000 $10,000,000 for each of fiscal years 2018 through 2023 to carry out this section, of which $4,800,000 per fiscal year shall be used to carry out the pilot program established under subsection (i). Such sums shall remain available until expended.”

“(i) Regional air transportation pilot program

“(1) Establishment—The Secretary shall establish a regional air transportation pilot program to provide operating assistance to air carriers in order to provide air service to communities not receiving sufficient air carrier service.

“(2) Grants—The Secretary shall provide grants under the program to encourage and maintain air service at reasonable airfares between communities that have experienced, as determined by the Secretary, significant declines in air service.

“(3) Application required—In order to participate in the program, a State, local government, economic development authority, or other public entity shall submit to the Secretary an application, in a manner that the Secretary prescribes, that contains—

“(A) an identification of an air carrier that has provided a written agreement to provide the air service in partnership with the applicant;

“(B) assurances that the applicant will provide the non-Federal share and that the non-Federal share is not derived from airport revenue;

“(C) a proposed route structure serving not more than 8 communities; and

“(D) a timeline for commencing the air service to the communities within the proposed route structure.

“(4) Criteria for participation—The Secretary may approve up to 3 applications each fiscal year, subject to the availability of funds, if the Secretary determines that—

“(A) the proposal of the applicant can reasonably be expected to encourage and improve levels of air service between the relevant communities;

“(B) the applicant has adequate financial resources to ensure the commitment to the communities;

“(C) the airports serving the communities are nonhub, small hub, or medium hub airports, as determined using the Department of Transportation’s most recently published classifications; and

“(D) the air carrier commits to serving the communities for at least 2 years.

“(5) Priorities—The Secretary shall prioritize applications that—

“(A) would initiate new or reestablish air service in communities where air fares are higher than the average air fares for all communities;

“(B) are more likely to result in self-sustaining air service at the end of the program;

“(C) request a Federal share lower than 50 percent; and

“(D) propose to use grant funds in a timely fashion.

“(6) Federal share—The Federal share of the cost of operating assistance provided under the program may not exceed 50 percent.

“(7) Sunset—This subsection shall cease to be effective on October 1, 2023.”