PART A -- AIR COMMERCE AND SAFETY                         
                                                                               
                            SUBPART I -- GENERAL                               
                                                                               
                     CHAPTER 401 -- GENERAL PROVISIONS                         
                                                                               
      Sec.                                                                     
      40101.  Policy.                                                          
      40102.  Definitions.                                                     
      40103.  Sovereignty and use of airspace.                                 
      40104.  Promotion of civil aeronautics and air commerce.                 
      40105.  International negotiations, agreements, and                      
              obligations.                                                     
      40106.  Emergency powers.                                                
      40107.  Presidential transfers.                                          
      40108.  Training schools.                                                
      40109.  Authority to exempt.                                             
      40110.  General procurement authority.                                   
      40111.  Multiyear procurement contracts for services and                 
              related items.                                                   
      40112.  Multiyear procurement contracts for property.                    
      40113.  Administrative.                                                  
      40114.  Reports and records.                                             
      40115.  Withholding information.                                         
      40116.  State taxation.                                                  
      40117.  Passenger facility fees.                                         
      40118.  Government-financed air transportation.                          
      40119.  Security and research and development activities.                
      40120.  Relationship to other laws.                                      
                                                                               
      Sec. 40101.  Policy                                                      
            (a) Economic Regulation. -- In carrying out subpart II of          
      this part and those provisions of subpart IV applicable in               
      carrying out subpart II, the Secretary of Transportation shall           
      consider the following matters, among others, as being in the            
      public interest and consistent with public convenience and               
      necessity:                                                               
                (1) assigning and maintaining safety as the highest            
            priority in air commerce.                                          
                (2) before authorizing new air transportation services,        
            evaluating the safety implications of those services.              
                (3) preventing deterioration in established safety             
            procedures, recognizing the clear intent, encouragement,           
            and dedication of Congress to further the highest degree of        
            safety in air transportation and air commerce, and to              
            maintain the safety vigilance that has evolved in air              
            transportation and air commerce and has come to be expected        
            by the traveling and shipping public.                              
                (4) the availability of a variety of adequate,                 
            economic, efficient, and low-priced services without               
            unreasonable discrimination or unfair or deceptive                 
            practices.                                                         
                (5) coordinating transportation by, and improving              
            relations among, air carriers, and encouraging fair wages          
            and working conditions.                                            
                (6) placing maximum reliance on competitive market             
                forces and on actual and potential competition --              
                    (A) to provide the needed air transportation               
                system; and                                                    
                    (B) to encourage efficient and well-managed air            
                carriers to earn adequate profits and attract capital,         
                considering any material differences between interstate        
                air transportation and foreign air transportation.             
                (7) developing and maintaining a sound regulatory              
            system that is responsive to the needs of the public and in        
            which decisions are reached promptly to make it easier to          
            adapt the air transportation system to the present and             
            future needs of --                                                 
                    (A) the commerce of the United States;                     
                    (B) the United States Postal Service; and                  
                    (C) the national defense.                                  
                (8) encouraging air transportation at major urban areas        
            through secondary or satellite airports if consistent with         
            regional airport plans of regional and local authorities,          
            and if endorsed by appropriate State authorities --                
                    (A) encouraging the transportation by air carriers         
                that provide, in a specific market, transportation             
                exclusively at those airports; and                             
                    (B) fostering an environment that allows those             
                carriers to establish themselves and develop secondary         
                or satellite airport services.                                 
                (9) preventing unfair, deceptive, predatory, or                
            anticompetitive practices in air transportation.                   
                (10) avoiding unreasonable industry concentration,             
            excessive market domination, monopoly powers, and other            
            conditions that would tend to allow at least one air               
            carrier or foreign air carrier unreasonably to increase            
            prices, reduce services, or exclude competition in air             
            transportation.                                                    
                (11) maintaining a complete and convenient system of           
            continuous scheduled interstate air transportation for             
            small communities and isolated areas with direct financial         
            assistance from the United States Government when                  
            appropriate.                                                       
                (12) encouraging, developing, and maintaining an air           
            transportation system relying on actual and potential              
            competition --                                                     
                    (A) to provide efficiency, innovation, and low             
                prices; and                                                    
                    (B) to decide on the variety and quality of, and           
                determine prices for, air transportation services.             
                (13) encouraging entry into air transportation markets         
            by new and existing air carriers and the continued                 
            strengthening of small air carriers to ensure a more               
            effective and competitive airline industry.                        
                (14) promoting, encouraging, and developing civil              
            aeronautics and a viable, privately-owned United States air        
            transport industry.                                                
                (15) strengthening the competitive position of air             
            carriers to at least ensure equality with foreign air              
            carriers, including the attainment of the opportunity for          
            air carriers to maintain and increase their profitability          
            in foreign air transportation.                                     
            (b) All-Cargo Air Transportation Considerations. -- In             
      carrying out subpart II of this part and those provisions of             
      subpart IV applicable in carrying out subpart II, the Secretary          
      of Transportation shall consider the following matters, among            
      others and in addition to the matters referred to in subsection          
      (a) of this section, as being in the public interest for                 
      all-cargo air transportation:                                            
                (1) encouraging and developing an expedited all-cargo          
            air transportation system provided by private enterprise           
            and responsive to --                                               
                    (A) the present and future needs of shippers;              
                    (B) the commerce of the United States; and                 
                    (C) the national defense.                                  
                (2) encouraging and developing an integrated                   
            transportation system relying on competitive market forces         
            to decide the extent, variety, quality, and price of               
            services provided.                                                 
                (3) providing services without unreasonable                    
            discrimination, unfair or deceptive practices, or predatory        
            pricing.                                                           
            (c) General Safety Considerations. -- In carrying out              
      subpart III of this part and those provisions of subpart IV              
      applicable in carrying out subpart III, the Administrator of the         
      Federal Aviation Administration shall consider the following             
      matters:                                                                 
                (1) the requirements of national defense and commercial        
            and general aviation.                                              
                (2) the public right of freedom of transit through the         
            navigable airspace.                                                
            (d) Safety Considerations in Public Interest. -- In                
      carrying out subpart III of this part and those provisions of            
      subpart IV applicable in carrying out subpart III, the                   
      Administrator shall consider the following matters, among others,        
      as being in the public interest:                                         
                (1) regulating air commerce in a way that best promotes        
            its development and safety and fulfills national defense           
            requirements.                                                      
                (2) promoting, encouraging, and developing civil               
            aeronautics.                                                       
                (3) controlling the use of the navigable airspace and          
            regulating civil and military operations in that airspace          
            in the interest of the safety and efficiency of both of            
            those operations.                                                  
                (4) consolidating research and development for air             
            navigation facilities and the installation and operation of        
            those facilities.                                                  
                (5) developing and operating a common system of air            
            traffic control and navigation for military and civil              
            aircraft.                                                          
                (6) providing assistance to law enforcement agencies in        
            the enforcement of laws related to regulation of controlled        
            substances, to the extent consistent with aviation safety.         
            (e) International Air Transportation.--In formulating              
      United States international air transportation policy, the               
      Secretaries of State and Transportation shall develop a                  
      negotiating policy emphasizing the greatest degree of competition        
      compatible with a well-functioning international air                     
      transportation system, including the following:                          
                (1) strengthening the competitive position of air              
            carriers to ensure at least equality with foreign air              
            carriers, including the attainment of the opportunity for          
            air carriers to maintain and increase their profitability          
            in foreign air transportation.                                     
                (2) freedom of air carriers and foreign air carriers to        
            offer prices that correspond to consumer demand.                   
                (3) the fewest possible restrictions on charter air            
            transportation.                                                    
                (4) the maximum degree of multiple and permissive              
            international authority for air carriers so that they will         
            be able to respond quickly to a shift in market demand.            
                (5) eliminating operational and marketing restrictions         
            to the greatest extent possible.                                   
                (6) integrating domestic and international air                 
            transportation.                                                    
                (7) increasing the number of nonstop United States             
            gateway cities.                                                    
                (8) opportunities for carriers of foreign countries to         
            increase their access to places in the United States if            
            exchanged for benefits of similar magnitude for air                
            carriers or the traveling public with permanent                    
            linkage between rights granted and rights given away.              
                (9) eliminating discrimination and unfair competitive          
            practices faced by United States airlines in foreign air           
            transportation, including --                                       
                    (A) excessive landing and user fees;                       
                    (B) unreasonable ground handling requirements;             
                    (C) unreasonable restrictions on operations;               
                    (D) prohibitions against change of gauge; and              
                    (E) similar restrictive practices.                         
                (10) promoting, encouraging, and developing civil              
            aeronautics and a viable, privately-owned United States air        
            transport industry.                                                
            (f) Strengthening Competition. -- In selecting an air              
      carrier to provide foreign air transportation from among                 
      competing applicants, the Secretary of Transportation shall              
      consider, in addition to the matters specified in subsections (a)        
      and (b) of this section, the strengthening of competition among          
      air carriers operating in the United States to prevent                   
      unreasonable concentration in the air carrier industry.                  
                                                                               
      Sec. 40102. Definitions                                                  
            (a) General Definitions. -- In this part --                        
                (1) "aeronautics" means the science and art of flight.         
                (2) "air carrier" means a citizen of the United States         
            undertaking by any means, directly or indirectly, to               
            provide air transportation.                                        
                (3) "air commerce" means foreign air commerce,                 
            interstate air commerce, the transportation of mail by             
            aircraft, the operation of aircraft within the limits of a         
            Federal airway, or the operation of aircraft that directly         
            affects, or may endanger safety in, foreign or interstate          
            air commerce.                                                      
                (4) "air navigation facility" means a facility used,           
            available for use, or designed for use, in aid of air              
            navigation, including --                                           
                    (A) a landing area;                                        
                    (B) a light;                                               
                    (C) apparatus or equipment for distributing weather        
                information, signaling, radio-directional finding, or          
                radio or other electromagnetic communication; and              
                    (D) another structure or mechanism for guiding or          
                controlling flight in the air or the landing and               
                takeoff of aircraft.                                           
                (5) "air transportation" means foreign air                     
            transportation, interstate air transportation, or the              
            transportation of mail by aircraft.                                
                (6) "aircraft" means any contrivance invented, used, or        
            designed to navigate, or fly in, the air.                          
                (7) "aircraft engine" means an engine used, or intended        
            to be used, to propel an aircraft, including a part,               
            appurtenance, and accessory of the engine, except a                
            propeller.                                                         
                (8) "airman" means an individual --                            
                    (A) in command, or as pilot, mechanic, or member of        
                the crew, who navigates aircraft when under way;               
                    (B) except to the extent the Administrator of the          
                Federal Aviation Administration may provide otherwise          
                for individuals employed outside the United States, who        
                is directly in charge of inspecting, maintaining,              
                overhauling, or repairing aircraft, aircraft engines,          
                propellers, or appliances; or                                  
                    (C) who serves as an aircraft dispatcher or air            
                traffic control-tower operator.                                
                (9) "airport" means a landing area used regularly by           
            aircraft for receiving or discharging passengers or cargo.         
                (10) "all-cargo air transportation" means the                  
            transportation by aircraft in interstate air transportation        
            of only property or only mail, or both.                            
                (11) "appliance" means an instrument, equipment,               
            apparatus, a part, an appurtenance, or an accessory used,          
            capable of being used, or intended to be used, in operating        
            or controlling aircraft in flight, including a parachute,          
            communication equipment, and another mechanism installed in        
            or attached to aircraft during flight, and not a part of an        
            aircraft, aircraft engine, or propeller.                           
                (12) "cargo" means property, mail, or both.                    
                (13) "charter air carrier" means an air carrier holding        
            a certificate of public convenience and necessity that             
            authorizes it to provide charter air transportation.               
                (14) "charter air transportation" means charter trips          
            in air transportation authorized under this part.                  
                (15) "citizen of the United States" means --                   
                    (A) an individual who is a citizen of the United           
                States;                                                        
                    (B) a partnership each of whose partners is an             
                individual who is a citizen of the United States; or           
                    (C) a corporation or association organized under           
                the laws of the United States or a State, the District         
                of Columbia, or a territory or possession of the United        
                States, of which the president and at least two-thirds         
                of the board of directors and other managing officers          
                are citizens of the United States, and in which at             
                least 75 percent of the voting interest is owned or            
                controlled by persons that are citizens of the United          
                States.                                                        
                (16) "civil aircraft" means an aircraft except a public        
            aircraft.                                                          
                (17) "civil aircraft of the United States" means an            
            aircraft registered under chapter 441 of this title.               
                (18) "conditional sales contract" means a contract --          
                    (A) for the sale of an aircraft, aircraft engine,          
                propeller, appliance, or spare part, under which the           
                buyer takes possession of the property but title to the        
                property vests in the buyer at a later time on --              
                        (i) paying any part of the purchase price;             
                        (ii) performing another condition; or                  
                        (iii) the happening of a contingency; or               
                    (B) to bail or lease an aircraft, aircraft engine,         
                propeller, appliance, or spare part, under which the           
                bailee or lessee --                                            
                        (i) agrees to pay an amount substantially equal        
                    to the value of the property; and                          
                        (ii) is to become, or has the option of                
                    becoming, the owner of the property on complying           
                    with the contract.                                         
                (19) "conveyance" means an instrument, including a             
            conditional sales contract, affecting title to, or an              
            interest in, property.                                             
                (20) "Federal airway" means a part of the navigable            
            airspace that the Administrator designates as a Federal            
            airway.                                                            
                (21) "foreign air carrier" means a person, not a               
            citizen of the United States, undertaking by any means,            
            directly or indirectly, to provide foreign air                     
            transportation.                                                    
                (22) "foreign air commerce" means the transportation of        
            passengers or property by aircraft for compensation, the           
            transportation of mail by aircraft, or the operation of            
            aircraft in furthering a business or vocation, between a           
            place in the United States and a place outside the United          
            States when any part of the transportation or operation is         
            by aircraft.                                                       
                (23) "foreign air transportation" means the                    
            transportation of passengers or property by aircraft as a          
            common carrier for compensation, or the transportation of          
            mail by aircraft, between a place in the United States and         
            a place outside the United States when any part of the             
            transportation is by aircraft.                                     
                (24) "interstate air commerce" means the transportation        
            of passengers or property by aircraft for compensation, the        
            transportation of mail by aircraft, or the operation of            
            aircraft in furthering a business or vocation --                   
                    (A) between a place in --                                  
                        (i) a State, territory, or possession of the           
                    United States and a place in the District of               
                    Columbia or another State, territory, or possession        
                    of the United States;                                      
                        (ii) a State and another place in the same             
                    State through the airspace over a place outside the        
                    State;                                                     
                        (iii) the District of Columbia and another             
                    place in the District of Columbia; or                      
                        (iv) a territory or possession of the United           
                    States and another place in the same territory or          
                    possession; and                                            
                    (B) when any part of the transportation or                 
                operation is by aircraft.                                      
                (25) "interstate air transportation" means the                 
            transportation of passengers or property by aircraft as            
            a common carrier for compensation, or the                          
            transportation of mail by aircraft --                              
                    (A) between a place in --                                  
                        (i) a State, territory, or possession of the           
                    United States and a place in the District of               
                    Columbia or another State, territory, or possession        
                    of the United States;                                      
                        (ii) Hawaii and another place in Hawaii through        
                    the airspace over a place outside Hawaii;                  
                        (iii) the District of Columbia and another             
                    place in the District of Columbia; or                      
                        (iv) a territory or possession of the United           
                    States and another place in the same territory or          
                    possession; and                                            
                    (B) when any part of the transportation is by              
                aircraft.                                                      
                (26) "intrastate air carrier" means a citizen of the           
            United States undertaking by any means to provide only             
            intrastate air transportation.                                     
                (27) "intrastate air transportation" means the                 
            transportation by a common carrier of passengers or                
            property for compensation, entirely in the same State,             
            by turbojet-powered aircraft capable of carrying at                
            least 30 passengers.                                               
                (28) "landing area" means a place on land or water,            
            including an airport or intermediate landing field,                
            used, or intended to be used, for the takeoff and                  
            landing of aircraft, even when facilities are not                  
            provided for sheltering, servicing, or repairing                   
            aircraft, or for receiving or discharging passengers or            
            cargo.                                                             
                (29) "mail" means United States mail and foreign               
            transit mail.                                                      
                (30) "navigable airspace" means airspace above the             
            minimum altitudes of flight prescribed by regulations              
            under subparts I and III of this part, including                   
            airspace needed to ensure safety in the takeoff and                
            landing of aircraft.                                               
                (31) "navigate aircraft" and "navigation of aircraft"          
            include piloting aircraft.                                         
                (32) "operate aircraft" and "operation of aircraft"            
            mean using aircraft for the purposes of air navigation,            
            including --                                                       
                    (A) the navigation of aircraft; and                        
                    (B) causing or authorizing the operation of                
                aircraft with or without the right of legal control of         
                the aircraft.                                                  
                (33) "person", in addition to its meaning under section        
            1 of title 1, includes a governmental authority and a              
            trustee, receiver, assignee, and other similar                     
            representative.                                                    
                (34) "predatory" means a practice that violates the            
            antitrust laws as defined in the first section of the              
            Clayton Act (15 U.S.C. 12).                                        
                (35) "price" means a rate, fare, or charge for air             
            transportation.                                                    
                (36) "propeller" includes a part, appurtenance, and            
            accessory of a propeller.                                          
                (37) "public aircraft" --                                      
                    (A) means an aircraft --                                   
                        (i) used only for the United States Government;        
                    or                                                         
                        (ii) owned and operated (except for commercial         
                    purposes), or exclusively leased for at least 90           
                    continuous days, by a government (except the United        
                    States Government), including a State, the District        
                    of Columbia, or a territory or possession of the           
                    United States, or political subdivision of that            
                    government; but                                            
                    (B) does not include a government-owned aircraft           
                transporting passengers or property for commercial             
                purposes.                                                      
                (38) "spare part" means an accessory, appurtenance, or         
            part of an aircraft (except an aircraft engine or                  
            propeller), aircraft engine (except a propeller),                  
            propeller, or appliance, that is to be installed at                
            a later time in an aircraft, aircraft engine, propeller, or        
            appliance.                                                         
                (39) "State authority" means an authority of a State           
            designated under State law --                                      
                    (A) to receive notice required to be given a State         
                authority under subpart II of this part; or                    
                    (B) as the representative of the State before the          
                Secretary of Transportation in any matter about which          
                the Secretary is required to consult with or consider          
                the views of a State authority under subpart II of this        
                part.                                                          
                (40) "ticket agent" means a person (except an air              
            carrier, a foreign air carrier, or an employee of an air           
            carrier or foreign air carrier) that as a principal or             
            agent sells, offers for sale, negotiates for, or holds             
            itself out as selling, providing, or arranging for, air            
            transportation.                                                    
                (41) "United States" means the States of the United            
            States, the District of Columbia, and the territories and          
            possessions of the United States, including the territorial        
            sea and the overlying airspace.                                    
            (b) Limited Definition. -- In subpart II of this part,             
      "control" means control by any means.                                    
                                                                               
      Sec. 40103. Sovereignty and use of airspace                              
            (a) Sovereignty and Public Right of Transit. -- (1) The            
      United States Government has exclusive sovereignty of airspace of        
      the United States.                                                       
            (2) A citizen of the United States has a public right of           
      transit through the navigable airspace.  To further that right,          
      the Secretary of Transportation shall consult with the                   
      Architectural and Transportation Barriers Compliance Board               
      established under section 502 of the Rehabilitation Act of 1973          
      (29 U.S.C. 792) before prescribing a regulation or issuing an            
      order or procedure that will have a significant impact on the            
      accessibility of commercial airports or commercial air                   
      transportation for handicapped individuals.                              
            (b) Use of Airspace. -- (1) The Administrator of the               
      Federal Aviation Administration shall develop plans and policy           
      for the use of the navigable airspace and assign by regulation or        
      order the use of the airspace necessary to ensure the safety of          
      aircraft and the efficient use of airspace.  The Administrator           
      may modify or revoke an assignment when required in the public           
      interest.                                                                
            (2) The Administrator shall prescribe air traffic                  
      regulations on the flight of aircraft (including regulations on          
      safe altitudes) for --                                                   
                (A) navigating, protecting, and identifying aircraft;          
                (B) protecting individuals and property on the ground;         
                (C) using the navigable airspace efficiently; and              
                (D) preventing collision between aircraft, between             
            aircraft and land or water vehicles, and between aircraft          
            and airborne objects.                                              
            (3) To establish security provisions that will encourage           
      and allow maximum use of the navigable airspace by civil aircraft        
      consistent with national security, the Administrator, in                 
      consultation with the Secretary of Defense, shall --                     
                (A) establish areas in the airspace the Administrator          
            decides are necessary in the interest of national defense;         
            and                                                                
                (B) by regulation or order, restrict or prohibit flight        
            of civil aircraft that the Administrator cannot identify,          
            locate, and control with available facilities in those             
            areas.                                                             
            (4) Notwithstanding the military exception in section              
      553(a)(1) of title 5, subchapter II of chapter 5 of title 5              
      applies to a regulation prescribed under this subsection.                
            (c) Foreign Aircraft. -- A foreign aircraft, not part of           
      the armed forces of a foreign country, may be navigated in the           
      United States as provided in section 41703 of this title.                
            (d) Aircraft of Armed Forces of Foreign Countries. --              
      Aircraft of the armed forces of a foreign country may be                 
      navigated in the United States only when authorized by the               
      Secretary of State.                                                      
            (e) No Exclusive Rights at Certain Facilities. -- A person         
      does not have an exclusive right to use an air navigation                
      facility on which Government money has been expended.  However,          
      providing services at an airport by only one  fixed-based                
      operator is not an exclusive right if --                                 
                (1) it is unreasonably costly, burdensome, or                  
            impractical for more than one fixed-based operator to              
            provide the services; and                                          
                (2) allowing more than one fixed-based operator to             
            provide the services requires a reduction in space leased          
            under an agreement existing on September 3, 1982, between          
            the operator and the airport.                                      
                                                                               
      Sec. 40104. Promotion of civil aeronautics and air commerce              
            The Administrator of the Federal Aviation Administration           
      shall encourage the development of civil aeronautics and air             
      commerce in and outside the United States.  In carrying out this         
      section, the Administrator shall take action that the                    
      Administrator considers necessary to establish, within available         
      resources, a program to distribute civil aviation information in         
      each region served by the Administration.  The program shall             
      provide, on request, informational material and expertise on             
      civil aviation to State and local school administrators, college         
      and university officials, and officers of other interested               
      organizations.                                                           
                                                                               
      Sec. 40105. International negotiations, agreements, and                  
      obligations                                                              
            (a) Advice and Consultation. -- The Secretary of State             
      shall advise the Administrator of the Federal Aviation                   
      Administration and the Secretaries of Transportation and                 
      Commerce, and consult with them as appropriate, about                    
      negotiations for an agreement with a government of a foreign             
      country to establish or develop air navigation, including air            
      routes and services.  The Secretary of Transportation shall              
      consult with the Secretary of State in carrying out this part to         
      the extent this part is related to foreign air transportation.           
            (b) Actions of Secretary and Administrator. -- (1) In              
      carrying out this part, the Secretary of Transportation and the          
      Administrator --                                                         
                (A) shall act consistently with obligations of the             
            United States Government under an international agreement;         
                (B) shall consider applicable laws and requirements of         
            a foreign country; and                                             
                (C) may not limit compliance by an air carrier with            
            obligations or liabilities imposed by the government of a          
            foreign country when the Secretary takes any action related        
            to a certificate of public convenience and necessity issued        
            under chapter 411.                                                 
            (2) This subsection does not apply to an agreement between         
      an air carrier or an officer or representative of an air carrier         
      and the government of a foreign country, if the Secretary of             
      Transportation disapproves the agreement because it is not in the        
      public interest.  Section 40106(b)(2) of this title applies to           
      this subsection.                                                         
            (c) Consultation on International Air Transportation               
      Policy. -- In carrying out section 40101(e) of this title, the           
      Secretaries of State and Transportation, to the maximum extent           
      practicable, shall consult on broad policy goals and individual          
      negotiations with --                                                     
                (1) the Secretaries of Commerce and Defense;                   
                (2) airport operators;                                         
                (3) scheduled air carriers;                                    
                (4) charter air carriers;                                      
                (5) airline labor;                                             
                (6) consumer interest groups;                                  
                (7) travel agents and tour organizers; and                     
                (8) other groups, institutions, and governmental               
            authorities affected by international aviation policy.             
            (d) Congressional Observers at International Aviation              
      Negotiations. -- The President shall grant to at least one               
      representative of each House of Congress the privilege of                
      attending international aviation negotiations as an observer if          
      the privilege is requested in advance in writing.                        
                                                                               
      Sec. 40106. Emergency powers                                             
            (a) Deviations From Regulations. -- Appropriate military           
      authority may authorize aircraft of the armed forces of the              
      United States to deviate from air traffic regulations prescribed         
      under section 40103(b)(1) and (2) of this title when the                 
      authority decides the deviation is essential to the national             
      defense because of a military emergency or urgent military               
      necessity.  The authority shall --                                       
                (1) give the Administrator of the Federal Aviation             
            Administration prior notice of the deviation at the                
            earliest practicable time; and                                     
                (2) to the extent time and circumstances allow, make           
            every reasonable effort to consult with the Administrator          
            and arrange for the deviation in advance on a mutually             
            agreeable basis.                                                   
            (b) Suspension of Authority. -- (1) When the President             
      decides that the government of a foreign country is acting               
      inconsistently with the Convention for the Suppression of                
      Unlawful Seizure of Aircraft or that the government of a foreign         
      country allows territory under its jurisdiction to be used as a          
      base of operations or training of, or as a sanctuary for, or             
      arms, aids, or abets, a terrorist organization that knowingly            
      uses the unlawful seizure, or the threat of an unlawful seizure,         
      of an aircraft as an instrument of policy, the President may             
      suspend the authority of --                                              
                (A) an air carrier or foreign air carrier to provide           
            foreign air transportation to and from that foreign                
            country;                                                           
                (B) a person to operate aircraft in foreign air                
            commerce to and from that foreign country;                         
                (C) a foreign air carrier to provide foreign air               
            transportation between the United States and another               
            country that maintains air service with the foreign                
            country; and                                                       
                (D) a foreign person to operate aircraft in foreign air        
            commerce between the United States and another country that        
            maintains air service with the foreign country.                    
            (2) The President may act under this subsection without            
      notice or a hearing.  The suspension remains in effect for as            
      long as the President decides is necessary to ensure the security        
      of aircraft against unlawful seizure.  Notwithstanding section           
      40105(b) of this title, the authority of the President to suspend        
      rights under this subsection is a condition to a certificate of          
      public convenience and necessity, air carrier operating                  
      certificate, foreign air carrier or foreign aircraft permit, or          
      foreign air carrier operating specification issued by the                
      Secretary of Transportation under this part.                             
            (3) An air carrier or foreign air carrier may not provide          
      foreign air transportation, and a person may not operate aircraft        
      in foreign air commerce, in violation of a suspension of                 
      authority under this subsection.                                         
                                                                               
      Sec. 40107. Presidential transfers                                       
            (a) General Authority. -- The President may transfer to the        
      Administrator of the Federal Aviation Administration a duty,             
      power, activity, or facility of a department, agency, or                 
      instrumentality of the executive branch of the United States             
      Government, or an officer or unit of a department, agency, or            
      instrumentality of the executive branch, related primarily to            
      selecting, developing, testing, evaluating, establishing,                
      operating, or maintaining a system, procedure, facility, or              
      device for safe and efficient air navigation and air traffic             
      control.  In making a transfer, the President may transfer               
      records and property and make officers and employees from the            
      department, agency, instrumentality, or unit available to the            
      Administrator.                                                           
            (b) During War. -- If war occurs, the President by                 
      executive order may transfer to the Secretary of Defense a duty,         
      power, activity, or facility of the Administrator.  In making the        
      transfer, the President may transfer records, property, officers,        
      and employees of the Administration to the Department of Defense.        
                                                                               
      Sec. 40108. Training schools                                             
            (a) Authority To Operate. -- The Administrator of the              
      Federal Aviation Administration may operate schools to train             
      officers and employees of the Administration to carry out duties,        
      powers, and activities of the Administrator.                             
            (b) Attendance. -- The Administrator may authorize officers        
      and employees of other departments, agencies, or                         
      instrumentalities of the United States Government, officers and          
      employees of governments of foreign countries, and individuals           
      from the aeronautics industry to attend those schools.  However,         
      if the attendance of any of those officers, employees, or                
      individuals increases the cost of operating the schools, the             
      Administrator may require the payment or transfer of amounts or          
      other consideration to offset the additional cost.  The amount           
      received may be credited to the appropriation current when the           
      expenditures are or were paid, the appropriation current                 
      when the amount is received, or both.                                    
                                                                               
      Sec. 40109. Authority to exempt                                          
            (a) Air Carriers and Foreign Air Carriers Not Engaged              
      Directly in Operating Aircraft. -- (1) The Secretary of                  
      Transportation may exempt from subpart II of this part --                
                (A) an air carrier not engaged directly in operating           
            aircraft in air transportation; or                                 
                (B) a foreign air carrier not engaged directly in              
            operating aircraft in foreign air transportation.                  
            (2) The exemption is effective to the extent and for               
      periods that the Secretary decides are in the public interest.           
            (b) Safety Regulation. -- The Administrator of the Federal         
      Aviation Administration may grant an exemption from a regulation         
      prescribed in carrying out sections 40103(b)(1) and (2), 40119,          
      44901, 44903, 44906, and 44935-44937 of this title when the              
      Administrator decides the exemption is in the public interest.           
            (c) Other Economic Regulation. -- Except as provided in            
      this section, the Secretary may exempt to the extent the                 
      Secretary considers necessary a person or class of persons from a        
      provision of chapter 411, sections 41301-41306, 41308-41310(a),          
      41501, 41503, 41504, 41506, 41510, 41511, 41701, 41702,                  
      41705-41709, 41711, 41712, and 41731-41742, chapter 419,                 
      subchapter II of chapter 421, and section 46301(b) of this title,        
      or a regulation or term prescribed under any of those provisions,        
      when the Secretary decides that the exemption is consistent with         
      the public interest.                                                     
            (d) Labor Requirements. -- The Secretary may not exempt an         
      air carrier from section 42112 of this title.  However, the              
      Secretary may exempt from section 42112(b)(1) and (2) an air             
      carrier not providing scheduled air transportation, and the              
      operations conducted during daylight hours by an air carrier             
      providing scheduled air transportation, when the Secretary               
      decides that --                                                          
                (1) because of the limited extent of, or unusual               
            circumstances affecting, the operation of the air carrier,         
            the enforcement of section 42112(b)(1) and (2) of this             
            title is or would be an unreasonable burden on the air             
            carrier that would obstruct its development and prevent it         
            from beginning or continuing operations; and                       
                (2) the exemption would not affect adversely the public        
            interest.                                                          
            (e) Maximum Flying Hours. -- The Secretary may not exempt          
      an air carrier under this section from a provision referred to in        
      subsection (c) of this section, or a regulation or term                  
      prescribed under any of those provisions, that sets maximum              
      flying hours for pilots or copilots.                                     
            (f) Smaller Aircraft. -- (1) An air carrier is exempt from         
      section 41101(a)(1) of this title, and the Secretary may exempt          
      an air carrier from another provision of subpart II of this part,        
      if the air carrier --                                                    
                (A)(i) provides passenger transportation only with             
            aircraft having a maximum capacity of 55 passengers; or            
                (ii) provides the transportation of cargo only with            
            aircraft having a maximum payload of less than 18,000              
            pounds; and                                                        
                (B) complies with liability insurance requirements and         
            other regulations the Secretary prescribes.                        
            (2) The Secretary may increase the passenger or payload            
      capacities when the public interest requires.                            
            (3)(A) An exemption under this subsection applies to an air        
      carrier providing air transportation between 2 places in Alaska,         
      or between Alaska and Canada, only if the carrier is authorized          
      by Alaska to provide the transportation.                                 
            (B) The Secretary may limit the number or location of              
      places that may be served by an air carrier providing                    
      transportation only in Alaska under an exemption from section            
      41101(a)(1) of this title, or the frequency with which the               
      transportation may be provided, only when the Secretary decides          
      that providing the transportation substantially impairs the              
      ability of an air carrier holding a certificate issued by the            
      Secretary to provide its authorized transportation, including the        
      minimum transportation requirement for Alaska specified under            
      section 41732(b)(1)(B) of this title.                                    
            (g) Emergency Air Transportation by Foreign Air Carriers.          
      -- (1) To the extent that the Secretary decides an exemption is          
      in the public interest, the Secretary may exempt by order a              
      foreign air carrier from the requirements and limitations of this        
      part for not more than 30 days to allow the foreign air                  
      carrier to carry passengers or cargo in interstate air                   
      transportation in certain markets if the Secretary finds that --         
                (A) because of an emergency created by unusual                 
            circumstances not arising in the normal course of business,        
            air carriers holding certificates under section 41102 of           
            this title cannot accommodate traffic in those markets;            
                (B) all possible efforts have been made to accommodate         
            the traffic by using the resources of the air carriers,            
            including the use of --                                            
                    (i) foreign aircraft, or sections of foreign               
                aircraft, under lease or charter to the air carriers;          
                and                                                            
                    (ii) the air carriers' reservations systems to the         
                extent practicable;                                            
                (C) the exemption is necessary to avoid unreasonable           
            hardship for the traffic in the markets that cannot be             
            accommodated by the air carriers; and                              
                (D) granting the exemption will not result in an               
            unreasonable advantage to any party in a labor dispute             
            where the inability to accommodate traffic in a market is a        
            result of the dispute.                                             
            (2) When the Secretary grants an exemption to a foreign air        
      carrier under this subsection, the Secretary shall --                    
                (A) ensure that air transportation that the foreign air        
            carrier provides under the exemption is made available on          
            reasonable terms;                                                  
                (B) monitor continuously the passenger load factor of          
            air carriers in the market that hold certificates under            
            section 41102 of this title; and                                   
                (C) review the exemption at least every 30 days to             
            ensure that the unusual circumstances that established the         
            need for the exemption still exist.                                
            (3) The Secretary may renew an exemption (including                
      renewals) under this subsection for not more than 30 days. An            
      exemption may continue for not more than 5 days after the unusual        
      circumstances that established the need for the exemption cease.         
            (h) Notice and Opportunity for Hearing. -- The Secretary           
      may act under subsections (d) and (f)(3)(B) of this section only         
      after giving the air carrier notice and an opportunity for a             
      hearing.                                                                 
                                                                               
      Sec. 40110. General procurement authority                                
            (a) General. -- In carrying out this part, the                     
      Administrator of the Federal Aviation Administration may --              
                (1) acquire, to the extent that amounts are available          
            for obligation, services or an interest in property,               
            including an interest in airspace immediately adjacent to          
            and needed for airports and other air navigation                   
            facilities owned by the United States Government and               
            operated by the Administrator;                                     
                (2) dispose of an interest in property for adequate            
            compensation; and                                                  
                (3) construct and improve laboratories and other test          
            facilities.                                                        
            (b) Duties and Powers. -- When carrying out subsection (a)         
      of this section, the Administrator of the Federal Aviation               
      Administration --                                                        
                (1) is the senior procurement executive referred to in         
            section 16(3) of the Office of Federal Procurement Policy          
            Act (41 U.S.C. 414(3)) for approving the justification for         
            using procedures other than competitive procedures, as             
            required under section 303(f)(1)(B)(iii) of the Federal            
            Property and Administrative Services Act of 1949 (41 U.S.C.        
            253(f)(1)(B)(iii)); and                                            
                (2) may --                                                     
                    (A) lease an interest in property for not more than        
                20 years;                                                      
                    (B) consider the reasonable probable future use of         
                the underlying land in making an award for                     
                a condemnation of an interest in airspace;                     
                    (C) construct, or acquire an interest in, a public         
                building (as defined in section 13 of the Public               
                Buildings Act of 1959 (40 U.S.C. 612)) only under a            
                delegation of authority from the Administrator of              
                General Services;                                              
                    (D) use procedures other than competitive                  
                procedures, as provided under section 303(c) of the            
                Federal Property and Administrative Services Act of            
                1949 (41 U.S.C. 253(c));                                       
                    (E) use procedures other than competitive                  
                procedures only when the property or services needed by        
                the Administrator of the Federal Aviation                      
                Administration are available from only one responsible         
                source or only from a limited number of responsible            
                sources and no other type of property or services will         
                satisfy the needs of the Administrator; and                    
                    (F) dispose of property under subsection (a)(2) of         
                this section, except for airport and airway property           
                and technical equipment used for the special purposes          
                of the Administration, only under title II of the              
                Federal Property and Administrative Services Act of            
                1949 (40 U.S.C. 481 et seq.).                                  
                                                                               
      Sec. 40111. Multiyear procurement contracts for services and             
      related items                                                            
            (a) General Authority. -- Notwithstanding section                  
      1341(a)(1)(B) of title 31, the Administrator of the Federal              
      Aviation Administration may make a contract of not more than 5           
      years for the following types of services and items of supply            
      related to those services for which amounts otherwise would              
      be available for obligation only in the fiscal year for which            
      appropriated:                                                            
                (1) operation, maintenance, and support of facilities          
            and installations.                                                 
                (2) operation, maintenance, and modification of                
            aircraft, vehicles, and other highly complex equipment.            
                (3) specialized training requiring high quality                
            instructor skills, including training of pilots and aircrew        
            members and foreign language training.                             
                (4) base services, including ground maintenance,               
            aircraft refueling, bus transportation, and refuse                 
            collection and disposal.                                           
            (b) Required Findings. -- The Administrator may make a             
      contract under this section only if the Administrator finds              
      that --                                                                  
                (1) there will be a continuing requirement for the             
            service consistent with current plans for the proposed             
            contract period;                                                   
                (2) providing the service will require a substantial           
            initial investment in plant or equipment, or will incur a          
            substantial contingent liability for assembling, training,         
            or transporting a specialized workforce; and                       
                (3) the contract will promote the best interests of the        
            United States by encouraging effective competition and             
            promoting economies in operation.                                  
            (c) Considerations. -- When making a contract under this           
      section, the Administrator shall be guided by the following:             
                (1) The part of the cost of a plant or equipment               
            amortized as a cost of contract performance may not be more        
            than the ratio between the period of contract performance          
            and the anticipated useful commercial life (instead of             
            physical life) of the plant or equipment, considering the          
            location and specialized nature of the plant or equipment,         
            obsolescence, and other similar factors.                           
                (2) The Administrator shall consider the desirability          
            of --                                                              
                    (A) obtaining an option to renew the contract for a        
                reasonable period of not more than 3 years, at a price         
                that does not include charges for nonrecurring costs           
                already amortized; and                                         
                    (B) reserving in the Administrator the right, on           
                payment of the unamortized part of the cost of the             
                plant or equipment, to take title to the plant or              
                equipment under appropriate circumstances.                     
            (d) Ending Contracts. -- A contract made under this section        
      shall be ended if amounts are not made available to continue the         
      contract into a subsequent fiscal year.  The cost of ending the          
      contract may be paid from --                                             
                (1) an appropriation originally available for carrying         
            out the contract;                                                  
                (2) an appropriation currently available for procuring         
            the type of service concerned and not otherwise obligated;         
            or                                                                 
                (3) amounts appropriated for payments to end the               
            contract.                                                          
                                                                               
      Sec. 40112. Multiyear procurement contracts for property                 
            (a) General Authority. -- Notwithstanding section                  
      1341(a)(1)(B) of title 31 and to the extent that amounts                 
      otherwise are available for obligation, the Administrator of the         
      Federal Aviation Administration may make a contract of more than         
      one but not more than 5 fiscal years to purchase property, except        
      a contract to construct, alter, or make a major repair or                
      improvement to real property or a contract to purchase property          
      to which section 111 of the Federal Property and Administrative          
      Services Act of 1949 (40 U.S.C. 759) applies.                            
            (b) Required Findings. -- The Administrator may make a             
      contract under this section if the Administrator finds that --           
                (1) the contract will promote the safety or efficiency         
            of the national airspace system and will result in reduced         
            total contract costs;                                              
                (2) the minimum need for the property to be purchased          
            is expected to remain substantially unchanged during the           
            proposed contract period in terms of production rate,              
            procurement rate, and total quantities;                            
                (3) there is a reasonable expectation that throughout          
            the proposed contract period the Administrator will request        
            appropriations for the contract at the level required to           
            avoid cancellation;                                                
                (4) there is a stable design for the property to be            
            acquired and the technical risks associated with the               
            property are not excessive; and                                    
                (5) the estimates of the contract costs and the                
            anticipated savings from the contract are realistic.               
            (c) Regulations. -- The Administrator shall prescribe              
      regulations for acquiring property under this section to promote         
      the use of contracts under this section in a way that will allow         
      the most efficient use of those contracts.  The regulations may          
      provide for a cancellation provision in the  contract to the             
      extent the provision is necessary and in the best interest of            
      the United States.  The provision may include consideration of           
      recurring and nonrecurring costs of the contractor associated            
      with producing the item to be delivered under the contract.  The         
      regulations shall provide that, to the extent practicable --             
                (1) to broaden the aviation industrial base --                 
                    (A) a contract under this section shall be used to         
                seek, retain, and promote the use under that contract          
                of subcontractors, vendors, or suppliers; and                  
                    (B) on accrual of a payment or other benefit               
                accruing on a contract under this section to a                 
                subcontractor, vendor, or supplier participating in the        
                contract, the payment or benefit shall be delivered in         
                the most expeditious way practicable; and                      
                (2) this section and regulations prescribed under this         
            section may not be carried out in a way that precludes or          
            curtails the existing ability of the Administrator to              
            provide for --                                                     
                    (A) competition in producing items to be delivered         
                under a contract under this section; or                        
                    (B) ending a prime contract when performance is            
                deficient with respect to cost, quality, or schedule.          
            (d) Contract Provisions. -- (1) A contract under this              
      section may --                                                           
                (A) be used for the advance procurement of components,         
            parts, and material necessary to manufacture equipment to          
            be used in the national airspace system;                           
                (B) provide that performance under the contract after          
            the first year is subject to amounts being appropriated;           
            and                                                                
                (C) contain a negotiated priced option for varying the         
            number of end items to be procured over the period of the          
            contract.                                                          
            (2) If feasible and practicable, an advance procurement            
      contract may be made to achieve economic-lot purchases and more          
      efficient production rates.                                              
            (e) Cancellation Payment and Notice of Cancellation                
      Ceiling. -- (1) If a contract under this section provides that           
      performance is subject to an appropriation being made, it also           
      may provide for a cancellation payment to be made to the                 
      contractor if the appropriation is not made.                             
            (2) Before awarding a contract under this section                  
      containing a cancellation ceiling of more than $100,000,000, the         
      Administrator shall give written notice of the proposed contract         
      and cancellation ceiling to the Committee on Commerce, Science,          
      and Transportation of the Senate and the Committee on Public             
      Works and Transportation of the House of Representatives.  The           
      contract may not be awarded until the end of the 30-day period           
      beginning on the date of the notice.                                     
            (f) Ending Contracts. -- A contract made under this section        
      shall be ended if amounts are not made available to continue the         
      contract into a subsequent fiscal year.  The cost of ending the          
      contract may be paid from --                                             
                (1) an appropriation originally available for carrying         
            out the contract;                                                  
                (2) an appropriation currently available for procuring         
            the type of property concerned and not otherwise obligated;        
            or                                                                 
                (3) amounts appropriated for payments to end the               
            contract.                                                          
                                                                               
      Sec. 40113. Administrative                                               
            (a) General Authority. -- The Secretary of Transportation          
      (or the Administrator of the Federal Aviation Administration with        
      respect to aviation safety duties and powers designated to be            
      carried out by the Administrator) may take action the Secretary          
      or Administrator, as appropriate, considers necessary to carry           
      out this part, including conducting investigations, prescribing          
      regulations, standards, and procedures, and issuing orders.              
            (b) Hazardous Material. -- In carrying out this part, the          
      Secretary has the  same authority to regulate the transportation         
      of hazardous material by air  that the Secretary has under               
      section 5103 of this title.  However, this subsection does not           
      prohibit or regulate the transportation of a firearm (as                 
      defined in section 232 of title 18) or ammunition for a firearm,         
      when transported by an individual for personal use.                      
            (c) Governmental Assistance. -- The Secretary (or the              
      Administrator of the Federal Aviation Administration with respect        
      to aviation safety duties and powers designated to be carried out        
      by the Administrator) may use the assistance of the Administrator        
      of the National Aeronautics and Space Administration and any             
      research or technical department, agency, or instrumentality of          
      the United States Government on matters related to aircraft fuel         
      and oil, and to the design, material, workmanship, construction,         
      performance, maintenance, and operation of aircraft, aircraft            
      engines, propellers, appliances, and air navigation facilities.          
      Each department, agency, and instrumentality may conduct                 
      scientific and technical research, investigations, and tests             
      necessary to assist the Secretary or Administrator of the Federal        
      Aviation Administration in carrying out this part.  This part            
      does not authorize duplicating laboratory research activities            
      of a department, agency, or instrumentality.                             
            (d) Indemnification. -- The Administrator of the Federal           
      Aviation Administration may indemnify an officer or employee of          
      the Administration against a claim or judgment arising out of an         
      act that the Administrator decides was committed within the scope        
      of the official duties of the officer or employee.                       
                                                                               
      Sec. 40114. Reports and records                                          
            (a) Written Reports. -- (1) Except as provided in this             
      part, the Secretary of Transportation (or the Administrator of           
      the Federal Aviation Administration with respect to aviation             
      safety duties and powers designated to be carried out by the             
      Administrator) shall make a written report of each proceeding and        
      investigation under this part in which a formal hearing was              
      held and shall provide a copy to each party to the proceeding or         
      investigation. The report shall include the decision,                    
      conclusions, order, and requirements of the Secretary or                 
      Administrator as appropriate.                                            
            (2) The Secretary (or the Administrator with respect to            
      aviation safety duties and powers designated to be carried out by        
      the Administrator) shall have all reports, orders, decisions, and        
      regulations the Secretary or Administrator, as appropriate,              
      issues or prescribes published in the form and way best adapted          
      for public use.  A publication of the Secretary or Administrator         
      is competent evidence of its contents.                                   
            (b) Public Records. -- Except as provided in subpart II of         
      this part, copies of tariffs and arrangements filed with the             
      Secretary under subpart II, and the statistics, tables, and              
      figures contained in reports made to the Secretary under subpart         
      II, are public records.  The Secretary is the custodian of those         
      records.  A public record, or a copy or extract of it, certified         
      by the Secretary under the seal of the Department of                     
      Transportation is competent evidence in an investigation by the          
      Secretary and in a judicial proceeding.                                  
                                                                               
      Sec. 40115. Withholding information                                      
            (a) Objections to Disclosure. -- (1) A person may object to        
      the public disclosure of information --                                  
                (A) in a record filed under this part; or                      
                (B) obtained under this part by the Secretary of               
            Transportation or State or the United States Postal                
            Service.                                                           
            (2) An objection must be in writing and must state the             
      reasons for the objection.  The Secretary of Transportation or           
      State or the Postal Service shall order the information withheld         
      from public disclosure when the appropriate Secretary or the             
      Postal Service decides that disclosure of the information                
      would --                                                                 
                (A) prejudice the United States Government in preparing        
            and presenting its position in international negotiations;         
            or                                                                 
                (B) have an adverse effect on the competitive position         
            of an air carrier in foreign air transportation.                   
            (b) Withholding Information From Congress. -- This section         
      does not authorize information to be withheld from a committee of        
      Congress authorized to have the information.                             
                                                                               
      Sec. 40116. State taxation                                               
            (a) Definition. -- In this section, "State" includes the           
      District of Columbia, a territory or possession of the United            
      States, and a political authority of at least 2 States.                  
            (b) Prohibitions. -- Except as provided in subsection (c)          
      of this section and section 40117 of this title, a State or              
      political subdivision of a State may not levy or collect a tax,          
      fee, head charge, or other charge on --                                  
                (1) an individual traveling in air commerce;                   
                (2) the transportation of an individual traveling in           
            air commerce;                                                      
                (3) the sale of air transportation; or                         
                (4) the gross receipts from that air commerce or               
            transportation.                                                    
            (c) Aircraft Taking Off or Landing in State. -- A State or         
      political subdivision of a State may levy or collect a tax on or         
      related to a flight of a commercial aircraft or an activity or           
      service on the aircraft only if the aircraft takes off or lands          
      in the State or political subdivision as part of the flight.             
            (d) Unreasonable Burdens and Discrimination Against                
      Interstate Commerce. -- (1) In this subsection --                        
                (A) "air carrier transportation property" means                
            property (as defined by the Secretary of Transportation)           
            that an air carrier providing air transportation owns or           
            uses.                                                              
                (B) "assessment" means valuation for a property tax            
            levied by a taxing district.                                       
                (C) "assessment jurisdiction" means a geographical area        
            in a State used in determining the assessed value of               
            property for ad valorem taxation.                                  
                (D) "commercial and industrial property" means property        
            (except transportation property and land used primarily for        
            agriculture or timber growing) devoted to a commercial or          
            industrial use and subject to a property tax levy.                 
            (2)(A) A State, political subdivision of a State, or               
      authority acting for a State or political subdivision may not do         
      any of the following acts because those acts unreasonably burden         
      and discriminate against interstate commerce:                            
                (i) assess air carrier transportation property at a            
            value that has a higher ratio to the true market value of          
            the property than the ratio that the assessed value of             
            other commercial and industrial property of the                    
            same type in the same assessment jurisdiction has to the           
            true market value of the other commercial and industrial           
            property.                                                          
                (ii) levy or collect a tax on an assessment that may           
            not be made under clause (i) of this subparagraph.                 
                (iii) levy or collect an ad valorem property tax on air        
            carrier transportation property at a tax rate greater than         
            the tax rate applicable to commercial and industrial               
            property in the same assessment jurisdiction.                      
            (B) Subparagraph (A) of this paragraph does not apply to an        
      in lieu tax completely used for airport and aeronautical                 
      purposes.                                                                
            (e) Other Allowable Taxes and Charges. -- Except as                
      provided in subsection (d) of this section, a State or political         
      subdivision of a State may levy or collect --                            
                (1) taxes (except those taxes enumerated in subsection         
            (b) of this section), including property taxes, net income         
            taxes, franchise taxes, and sales or use taxes on the sale         
            of goods or services; and                                          
                (2) reasonable rental charges, landing fees, and other         
            service charges from aircraft operators for using airport          
            facilities of an airport owned or operated by that State or        
            subdivision.                                                       
            (f) Pay of Air Carrier Employees. -- (1) In this                   
      subsection --                                                            
                (A) "pay" means money received by an employee for              
            services.                                                          
                (B) "State" means a State of the United States, the            
            District of Columbia, and a territory or possession of the         
            United States.                                                     
                (C) an employee is deemed to have earned 50 percent of         
            the employee's pay in a State or political subdivision of a        
            State in which the scheduled flight time of the employee in        
            the State or subdivision is more than 50 percent of the            
            total scheduled flight time of the employee when employed          
            during the calendar year.                                          
            (2) The pay of an employee of an air carrier having                
      regularly assigned duties on aircraft in at least 2 States is            
      subject to the income tax laws of only the following:                    
                (A) the State or political subdivision of the State            
            that is the residence of the employee.                             
                (B) the State or political subdivision of the State in         
            which the employee earns more than 50 percent of the pay           
            received by the employee from the carrier.                         
                                                                               
      Sec. 40117. Passenger facility fees                                      
            (a) Definitions. -- In this section --                             
                (1) "airport", "commercial service airport", and               
            "public agency" have the same meanings given those terms in        
            section 47102 of this title.                                       
                (2) "eligible agency" means a public agency that               
            controls a commercial service airport.                             
                (3) "eligible airport-related project" means a                 
            project --                                                         
                    (A) for airport development or airport planning            
                under subchapter I of chapter 471 of this title;               
                    (B) for terminal development described in section          
                47110(d) of this title;                                        
                    (C) for airport noise capability planning under            
                section 47505 of this title;                                   
                    (D) to carry out noise compatibility measures              
                eligible for assistance under section 47504 of this            
                title, whether or not a program for those measures has         
                been approved under section 47504; and                         
                    (E) for constructing gates and related areas at            
                which passengers board or exit aircraft.                       
                (4) "passenger facility fee" means a fee imposed under         
            this section.                                                      
                (5) "passenger facility revenue" means revenue derived         
            from a passenger facility fee.                                     
            (b) General Authority. -- (1) The Secretary of                     
      Transportation may authorize under this section an eligible              
      agency to impose a passenger facility fee of $1, $2, or $3 on            
      each paying passenger of an air carrier or foreign air carrier           
      boarding an aircraft at an airport the agency controls to finance        
      an eligible airport-related project, including making payments           
      for debt service on indebtedness incurred to carry out the               
      project, to be carried out in connection with the airport or any         
      other airport the agency controls.                                       
            (2) A State, political subdivision of a State, or authority        
      of a State or political subdivision that is not the eligible             
      agency may not regulate or prohibit the imposition or collection         
      of a passenger facility fee or the use of the passenger facility         
      revenue.                                                                 
            (3) A passenger facility fee may be imposed on a passenger         
      of an air carrier or foreign air carrier originating or                  
      connecting at the commercial service airport that the agency             
      controls.                                                                
            (c) Applications. -- (1) An eligible agency must submit to         
      the Secretary an application for authority to impose a passenger         
      facility fee.  The application shall contain information and be          
      in the form that the Secretary may require by regulation.                
            (2) Before submitting an application, the eligible agency          
      must provide reasonable notice to, and an opportunity for                
      consultation with, air carriers and foreign air carriers                 
      operating at the airport.  The Secretary shall prescribe                 
      regulations that define reasonable notice and contain at least           
      the following requirements:                                              
                (A) The agency must provide written notice of                  
            individual projects being considered for financing by a            
            passenger facility fee and the date and location of a              
            meeting to present the projects to air carriers and                
            foreign air carriers operating at the airport.                     
                (B) Not later than 30 days after written notice is             
            provided under subparagraph (A) of this paragraph, each air        
            carrier and foreign air carrier operating at the airport           
            must provide to the agency written notice of receipt of the        
            notice.  Failure of a carrier to provide the notice may be         
            deemed certification of agreement with the project by the          
            carrier under subparagraph (D) of this paragraph.                  
                (C) Not later than 45 days after written notice is             
            provided under subparagraph (A) of this paragraph, the             
            agency must conduct a meeting to provide air carriers and          
            foreign air carriers with descriptions of projects and             
            justifications and a detailed financial plan for projects.         
                (D) Not later than 30 days after the meeting, each air         
            carrier and foreign air carrier must provide to the agency         
            certification of agreement or disagreement with projects           
            (or total plan for the projects).  Failure to provide the          
            certification is deemed certification of agreement with            
            the project by the carrier.  A certification of                    
            disagreement is void if it does not contain the reasons for        
            the disagreement.                                                  
            (3) After receiving an application, the Secretary shall            
      provide notice and an opportunity to air carriers, foreign air           
      carriers, and other interested persons to comment on the                 
      application.  The Secretary shall make a final decision on the           
      application not later than 120 days after receiving it.                  
            (d) Limitations on Approving Applications. -- The Secretary        
      may approve an application that an eligible agency has submitted         
      under subsection (c) of this section to finance a specific               
      project only if the Secretary finds, based on the application,           
      that --                                                                  
                (1) the amount and duration of the proposed passenger          
            facility fee will result in revenue (including interest and        
            other returns on the revenue) that is not more than the            
            amountnecessary to finance the specific project; and               
                (2) each project is an eligible airport-related project        
            that will --                                                       
                    (A) preserve or enhance capacity, safety, or               
                security of the national air transportation system;            
                    (B) reduce noise resulting from an airport that is         
                part of the system; or                                         
                    (C) provide an opportunity for enhanced competition        
                between or among air carriers and foreign air carriers.        
            (e) Limitations on Imposing Fees. -- (1) An eligible agency        
      may impose a passenger facility fee only --                              
                (A) if the Secretary approves an application that the          
            agency has submitted under subsection (c) of this section;         
            and                                                                
                (B) subject to terms the Secretary may prescribe to            
            carry out the objectives of this section.                          
            (2) A passenger facility fee may not be collected from a           
      passenger --                                                             
                (A) for more than 2 boardings on a one-way trip or a           
            trip in each direction of a round trip;                            
                (B) for the boarding to an eligible place under                
            subchapter II of chapter 417 of this title for which               
            essential air service compensation is paid under subchapter        
            II; and                                                            
                (C) for a project the Secretary does not approve under         
            this section before October 1, 1993, if, during the fiscal         
            year ending September 30, 1993, the amount available for           
            obligation under subchapter II of chapter 417 of this title        
            is less than $38,600,000, except that this clause --               
                    (i) does not apply if the amount available for             
                obligation under subchapter II of chapter 417 of this          
                title is less than $38,600,000 because of sequestration        
                or other general appropriations reductions applied             
                proportionately to appropriations accounts throughout          
                an appropriation law; and                                      
                    (ii) does not affect the authority of the Secretary        
                to approve the imposition of a fee or the use of               
                revenues, derived from a fee imposed under an approval         
                made under this section, by a public agency that has           
                received an approval to impose a fee under this section        
                before September 30, 1993, regardless of whether the           
                fee is being imposed on September 30, 1993.                    
            (f) Limitations on Contracts, Leases, and Use                      
      Agreements. -- (1) A contract between an air carrier or foreign          
      air carrier and an eligible agency made at any time may not              
      impair the authority of the agency to impose a passenger facility        
      fee or to use the passenger facility revenue as provided in this         
      section.                                                                 
            (2) A project financed with a passenger facility fee may           
      not be subject to an exclusive long-term lease or use agreement          
      of an air carrier or foreign air carrier, as defined by                  
      regulations of the Secretary.                                            
            (3) A lease or use agreement of an air carrier or foreign          
      air carrier related to a project whose construction or expansion         
      was financed with a passenger facility fee may not restrict the          
      eligible agency from financing, developing, or assigning new             
      capacity at the airport with passenger facility revenue.                 
            (g) Treatment of Revenue. -- (1) Passenger facility revenue        
      is not airport revenue for purposes of establishing a price under        
      a contract between an eligible agency and an air carrier or              
      foreign air carrier.                                                     
            (2) An eligible agency may not include in its price base           
      the part of the capital costs of a project paid for by using             
      passenger facility revenue to establish a price under a contract         
      between the agency and an air carrier or foreign air carrier.            
            (3) For a project for terminal development, gates and              
      related areas, or a facility occupied or used by at least one air        
      carrier or foreign air carrier on an exclusive or preferential           
      basis, a price payable by an air carrier or foreign air carrier          
      using the facilities must at least equal the price paid                  
      by an air carrier or foreign air carrier using a similar facility        
      at the airport that was not financed with passenger facility             
      revenue.                                                                 
            (h) Compliance. -- (1) As necessary to ensure compliance           
      with this section, the Secretary shall prescribe regulations             
      requiring recordkeeping and auditing of accounts maintained by an        
      air carrier or foreign air carrier and its agent collecting a            
      passenger facility fee and by the eligible agency imposing the           
      fee.                                                                     
            (2) The Secretary periodically shall audit and review the          
      use by an eligible agency of passenger facility revenue.  After          
      review and a public hearing, the Secretary may end any part of           
      the authority of the agency to impose a passenger facility fee to        
      the extent the Secretary decides that the revenue is not being           
      used as provided in this section.                                        
            (3) The Secretary may set off amounts necessary to ensure          
      compliance with this section against amounts otherwise payable to        
      an eligible agency under subchapter I of chapter 471 of this             
      title if the Secretary decides a passenger facility fee is               
      excessive or that passenger facility revenue is not being used as        
      provided in this section.                                                
            (i) Regulations. -- The Secretary shall prescribe                  
      regulations necessary to carry out this section.  The                    
      regulations --                                                           
                (1) may prescribe the time and form by which a                 
            passenger facility fee takes effect; and                           
                (2) shall --                                                   
                    (A) require an air carrier or foreign air carrier          
                and its agent to collect a passenger facility fee that         
                an eligible agency imposes under this section;                 
                    (B) establish procedures for handling and remitting        
                money collected;                                               
                    (C) ensure that the money, less a uniform amount           
                the Secretary determines reflects the average necessary        
                and reasonable expenses (net of interest accruing to           
                the carrier and agent after collection and before              
                remittance) incurred in collecting and handling the            
                fee, is paid promptly to the eligible agency for which         
                they are collected; and                                        
                    (D) require that the amount collected for any air          
                transportation be noted on the ticket for that air             
                transportation.                                                
                                                                               
      Sec. 40118. Government-financed air transportation                       
            (a) Transportation by Air Carriers Holding Certificates. --        
      A department, agency, or instrumentality of the United States            
      Government shall take necessary steps to ensure that the                 
      transportation of passengers and property by air is provided by          
      an air carrier holding a certificate under section 41102 of this         
      title if --                                                              
                (1) the department, agency, or instrumentality --              
                    (A) obtains the transportation for itself or in            
                carrying out an arrangement under which payment is made        
                by the Government or payment is made from amounts              
                provided for the use of the Government; or                     
                    (B) provides the transportation to or for a foreign        
                country or international or other organization without         
                reimbursement;                                                 
                (2) the transportation is authorized by the certificate        
            or by regulation or exemption of the Secretary of                  
            Transportation; and                                                
                (3) the air carrier is --                                      
                    (A) available, if the transportation is between a          
                place in the United States and a place outside the             
                United States; or                                              
                    (B) reasonably available, if the transportation is         
                between 2 places outside the United States.                    
            (b) Transportation by Foreign Air Carriers. -- This section        
      does not preclude the transportation of passengers and property          
      by a foreign air carrier if the transportation is provided under         
      a bilateral or multilateral air transportation agreement to which        
      the Government and the government of a foreign country are               
      parties if the agreement --                                              
                (1) is consistent with the goals for international             
            aviation policy of section 40101(e) of this title; and             
                (2) provides for the exchange of rights or benefits of         
            similar magnitude.                                                 
            (c) Proof. -- The Comptroller General shall allow the              
      expenditure of an appropriation for transportation in violation          
      of this section only when satisfactory proof is presented showing        
      the necessity for the transportation.                                    
            (d) Transportation by Foreign Air Carriers. --                     
      Notwithstanding subsections (a) and (c) of this section, any             
      amount appropriated to the Secretary of State, the Director of           
      the United States Information Agency, the Director of the United         
      States International Development Cooperation Agency, or the              
      Director of the Arms Control and Disarmament Agency may be used          
      to pay for the transportation of an officer or employee of the           
      Department of State or one of those agencies, a dependent of the         
      officer or employee, and accompanying baggage, by a foreign air          
      carrier when the transportation is between 2 places outside the          
      United States.                                                           
            (e) Relationship to Other Laws. -- This section does not           
      affect the application of the antidiscrimination provisions of           
      this part.                                                               
                                                                               
      Sec. 40119. Security and research and development activities             
            (a) General Requirements. -- The Administrator of the              
      Federal Aviation Administration shall conduct research (including        
      behavioral research) and development activities appropriate to           
      develop, modify, test, and evaluate a system, procedure,                 
      facility, or device to protect passengers and property against           
      acts of criminal violence and aircraft piracy.                           
            (b) Disclosure. -- (1) Notwithstanding section 552 of title        
      5, the Administrator shall prescribe regulations prohibiting             
      disclosure of information obtained or developed in carrying out          
      security or research and development activities under section            
      44501(a) or (c), 44502(a)(1) or (3), (b), or (c), 44504, 44505,          
      44507, 44508, 44511, 44512, 44513, 44901, 44903(a), (b), (c), or         
      (e), 44905, 44912, 44935, 44936, or 44938(a) or (b) of this title        
      if the Administrator decides disclosing the information would --         
                (A) be an unwarranted invasion of personal privacy;            
                (B) reveal a trade secret or privileged or confidential        
            commercial or financial information; or                            
                (C) be detrimental to the safety of passengers in air          
            transportation.                                                    
            (2) Paragraph (1) of this subsection does not authorize            
      information to be withheld from a committee of Congress                  
      authorized to have the information.                                      
            (c) Transfers of Duties and Powers Prohibited. -- Except as        
      otherwise provided by law, the Administrator may not transfer a          
      duty or power under this section to another department, agency,          
      or instrumentality of the United States Government.                      
                                                                               
      Sec. 40120. Relationship to other laws                                   
            (a) Nonapplication. -- Except as provided in the                   
      International Navigational Rules Act of 1977 (33 U.S.C. 1601 et          
      seq.), the navigation and shipping laws of the United States and         
      the rules for the prevention of collisions do not apply to               
      aircraft or to the navigation of vessels related to those                
      aircraft.                                                                
            (b) Extending Application Outside United States. -- The            
      President may extend (in the way and for periods the President           
      considers necessary) the application of this part to outside the         
      United States when --                                                    
                (1) an international arrangement gives the United              
            States Government authority to make the extension; and             
                (2) the President decides the extension is in the              
            national interest.                                                 
            (c) Additional Remedies. -- A remedy under this part is in         
      addition to any other remedies provided by law.