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To amend title 49, United States Code, to ensure funding for the essential air service program and rural air safety programs, and for other purposes.

November 7, 1995

Mr. DORGAN (for himself, Mr. EXON, Mr. ROCKEFELLER, Mr. KERREY, and Mr. CONRAD) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation

To amend title 49, United States Code, to ensure funding for the essential air service program and rural air safety programs, and for other purposes.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the `Rural Air Service Survival Act'.

SEC. 2. FINDINGS.

The Congress finds that--

(1) air service in rural areas is essential to a national transportation network;

(2) the rural air service infrastructure supports the safe operation of all air travel;

(3) rural air service creates economic benefits for all air carriers by making the national aviation system available to passengers from rural areas;

(4) rural air service has suffered since deregulation;

(5) the essential air service program under the Department of Transportation--

(A) provides essential airline access to rural and isolated rural communities throughout the Nation;

(B) is necessary for the economic growth and development of rural communities;

(C) is a critical component of the national transportation system of the United States; and

(D) has endured serious funding cuts in recent years; and

(6) a reliable source of funding must be established to maintain air service in rural areas and the essential air service program.

SEC. 3. FUNDING FOR SMALL COMMUNITY AIR SERVICE.

Section 40117 of title 49, United States Code, is amended by adding at the end thereof the following:

`(j) Additional Fee-

`(1) IMPOSITION OF FEE- Each eligible agency that may impose a passenger facility fee under this section shall impose a 10-cent fee under this subsection for each enplanement to provide funds to support a national aviation system, rural airspace safety, and rural air service.

`(2) FEE TO BE SEPARATELY ACCOUNTED FOR- The proceeds of fees imposed under this subsection shall be accounted for separately from the proceeds of any fee imposed under subsection (b).

`(3) Fees to be used for small community air service-

`(A) IN GENERAL- Fees collected under this subsection shall be immediately made available to the Secretary for use in carrying out the essential air service program under subchapter II of chapter 417 of this title.

`(B) DISPOSITION OF EXCESS FUNDS- Any funds that are not obligated or expended at the end of the fund's fiscal year for the purpose of funding the essential air service program under such subchapter shall be made available to the Federal Aviation Administration for use in improving rural air safety under subchapter I of chapter 417 of this title and shall be used exclusively for projects at rural airports under subchapter II of chapter 417 of this title.

`(C) COMPENSATION OF AIR CARRIERS FOR ACTING AS COLLECTION AGENTS- The Secretary shall prescribe regulations under which any air carrier or its agent required to collect fees imposed under this section is permitted to retain, out of the amounts collected, an amount equal to the necessary and reasonable expenses (reduced by any interest earned on the deposit of such amounts during the period between collection and remittance) incurred in collecting and handling the fees.'.

SEC. 4. SECRETARY MAY REQUIRE MATCHING LOCAL FUNDS.

Section 41737 of title 49, United State Code, is amended by adding at the end thereof the following:

`(f) MATCHING FUNDS- No earlier than 2 years after the date of enactment of the Rural Air Service Survival Act, the Secretary may require an eligible agency, as defined in section 40117(a)(2) of this title, to provide matching funds of up to 10 percent for any payments it receives under this subchapter.'.

SEC. 5. EFFECTIVE DATE.

The amendments made by this section shall take effect on the first day of October next occurring after the date of enactment of this Act.

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