
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-181 Section 125(a)]
[Document affected by Public Law 106-181 Section 125(e)]
[CITE: 49USC47107]

 
                        TITLE 49--TRANSPORTATION
 
                     SUBTITLE VII--AVIATION PROGRAMS
 
                  PART B--AIRPORT DEVELOPMENT AND NOISE
 
                    CHAPTER 471--AIRPORT DEVELOPMENT
 
                    SUBCHAPTER I--AIRPORT IMPROVEMENT
 
Sec. 47107. Project grant application approval conditioned on 
        assurances about airport operations
        
    (a) General Written Assurances.--The Secretary of Transportation may 
approve a project grant application under this subchapter for an airport 
development project only if the Secretary receives written assurances, 
satisfactory to the Secretary, that--
        (1) the airport will be available for public use on reasonable 
    conditions and without unjust discrimination;
        (2) air carriers making similar use of the airport will be 
    subject to substantially comparable charges--
            (A) for facilities directly and substantially related to 
        providing air transportation; and
            (B) regulations and conditions, except for differences based 
        on reasonable classifications, such as between--
                (i) tenants and nontenants; and
                (ii) signatory and nonsignatory carriers;

        (3) the airport operator will not withhold unreasonably the 
    classification or status of tenant or signatory from an air carrier 
    that assumes obligations substantially similar to those already 
    imposed on air carriers of that classification or status;
        (4) a person providing, or intending to provide, aeronautical 
    services to the public will not be given an exclusive right to use 
    the airport, with a right given to only one fixed-base operator to 
    provide services at an airport deemed not to be an exclusive right 
    if--
            (A) the right would be unreasonably costly, burdensome, or 
        impractical for more than one fixed-base operator to provide the 
        services; and
            (B) allowing more than one fixed-base operator to provide 
        the services would require reducing the space leased under an 
        existing agreement between the one fixed-base operator and the 
        airport owner or operator;

        (5) fixed-base operators similarly using the airport will be 
    subject to the same charges;
        (6) an air carrier using the airport may service itself or use 
    any fixed-base operator allowed by the airport operator to service 
    any carrier at the airport;
        (7) the airport and facilities on or connected with the airport 
    will be operated and maintained suitably, with consideration given 
    to climatic and flood conditions;
        (8) a proposal to close the airport temporarily for a 
    nonaeronautical purpose must first be approved by the Secretary;
        (9) appropriate action will be taken to ensure that terminal 
    airspace required to protect instrument and visual operations to the 
    airport (including operations at established minimum flight 
    altitudes) will be cleared and protected by mitigating existing, and 
    preventing future, airport hazards;
        (10) appropriate action, including the adoption of zoning laws, 
    has been or will be taken to the extent reasonable to restrict the 
    use of land next to or near the airport to uses that are compatible 
    with normal airport operations;
        (11) each of the airport's facilities developed with financial 
    assistance from the United States Government and each of the 
    airport's facilities usable for the landing and taking off of 
    aircraft always will be available without charge for use by 
    Government aircraft in common with other aircraft, except that if 
    the use is substantial, the Government may be charged a reasonable 
    share, proportionate to the use, of the cost of operating and 
    maintaining the facility used;
        (12) the airport owner or operator will provide, without charge 
    to the Government, property interests of the sponsor in land or 
    water areas or buildings that the Secretary decides are desirable 
    for, and that will be used for, constructing at Government expense, 
    facilities for carrying out activities related to air traffic 
    control or navigation;
        (13) the airport owner or operator will maintain a schedule of 
    charges for use of facilities and services at the airport--
            (A) that will make the airport as self-sustaining as 
        possible under the circumstances existing at the airport, 
        including volume of traffic and economy of collection; and
            (B) without including in the rate base used for the charges 
        the Government's share of costs for any project for which a 
        grant is made under this subchapter or was made under the 
        Federal Airport Act or the Airport and Airway Development Act of 
        1970;

        (14) the project accounts and records will be kept using a 
    standard system of accounting that the Secretary, after consulting 
    with appropriate public agencies, prescribes;
        (15) the airport owner or operator will submit any annual or 
    special airport financial and operations reports to the Secretary 
    that the Secretary reasonably requests and make such reports 
    available to the public;
        (16) the airport owner or operator will maintain a current 
    layout plan of the airport that meets the following requirements:
            (A) the plan will be in a form the Secretary prescribes;
            (B) the Secretary will approve the plan and any revision or 
        modification before the plan, revision, or modification takes 
        effect;
            (C) the owner or operator will not make or allow any 
        alteration in the airport or any of its facilities if the 
        alteration does not comply with the plan the Secretary approves, 
        and the Secretary is of the opinion that the alteration may 
        affect adversely the safety, utility, or efficiency of the 
        airport; and
            (D) when an alteration in the airport or its facility is 
        made that does not conform to the approved plan and that the 
        Secretary decides adversely affects the safety, utility, or 
        efficiency of any property on or off the airport that is owned, 
        leased, or financed by the Government, the owner or operator, if 
        requested by the Secretary, will--
                (i) eliminate the adverse effect in a way the Secretary 
            approves; or
                (ii) bear all cost of relocating the property or its 
            replacement to a site acceptable to the Secretary and of 
            restoring the property or its replacement to the level of 
            safety, utility, efficiency, and cost of operation that 
            existed before the alteration was made;

        (17) each contract and subcontract for program management, 
    construction management, planning studies, feasibility studies, 
    architectural services, preliminary engineering, design, 
    engineering, surveying, mapping, and related services will be 
    awarded in the same way that a contract for architectural and 
    engineering services is negotiated under title IX of the Federal 
    Property and Administrative Services Act of 1949 (40 U.S.C. 541 et 
    seq.) or an equivalent qualifications-based requirement prescribed 
    for or by the sponsor;
        (18) the airport and each airport record will be available for 
    inspection by the Secretary on reasonable request, and a report of 
    the airport budget will be available to the public at reasonable 
    times and places;
        (19) the airport owner or operator will submit to the Secretary 
    and make available to the public an annual report listing in 
    detail--
            (A) all amounts paid by the airport to any other unit of 
        government and the purposes for which each such payment was 
        made; and
            (B) all services and property provided to other units of 
        government and the amount of compensation received for provision 
        of each such service and property; and

        (20) the airport owner or operator will permit, to the maximum 
    extent practicable, intercity buses or other modes of transportation 
    to have access to the airport, but the sponsor does not have any 
    obligation under this paragraph, or because of it, to fund special 
    facilities for intercity bus service or for other modes of 
    transportation.

    (b) Written Assurances on Use of Revenue.--(1) The Secretary of 
Transportation may approve a project grant application under this 
subchapter for an airport development project only if the Secretary 
receives written assurances, satisfactory to the Secretary, that local 
taxes on aviation fuel (except taxes in effect on December 30, 1987) and 
the revenues generated by a public airport will be expended for the 
capital or operating costs of--
        (A) the airport;
        (B) the local airport system; or
        (C) other local facilities owned or operated by the airport 
    owner or operator and directly and substantially related to the air 
    transportation of passengers or property.

    (2) Paragraph (1) of this subsection does not apply if a provision 
enacted not later than September 2, 1982, in a law controlling financing 
by the airport owner or operator, or a covenant or assurance in a debt 
obligation issued not later than September 2, 1982, by the owner or 
operator, provides that the revenues, including local taxes on aviation 
fuel at public airports, from any of the facilities of the owner or 
operator, including the airport, be used to support not only the airport 
but also the general debt obligations or other facilities of the owner 
or operator.
    (3) This subsection does not prevent the use of a State tax on 
aviation fuel to support a State aviation program or the use of airport 
revenue on or off the airport for a noise mitigation purpose.
    (c) Written Assurances on Acquiring Land.--(1) In this subsection, 
land is needed for an airport purpose (except a noise compatibility 
purpose) if--
        (A)(i) the land may be needed for an aeronautical purpose 
    (including runway protection zone) or serves as noise buffer land; 
    and
        (ii) revenue from interim uses of the land contributes to the 
    financial self-sufficiency of the airport; and
        (B) for land purchased with a grant the owner or operator 
    received not later than December 30, 1987, the Secretary of 
    Transportation or the department, agency, or instrumentality of the 
    Government that made the grant was notified by the owner or operator 
    of the use of the land and did not object to the use and the land is 
    still being used for that purpose.

    (2) The Secretary of Transportation may approve an application under 
this subchapter for an airport development project grant only if the 
Secretary receives written assurances, satisfactory to the Secretary, 
that if an airport owner or operator has received or will receive a 
grant for acquiring land and--
        (A) if the land was or will be acquired for a noise 
    compatibility purpose--
            (i) the owner or operator will dispose of the land at fair 
        market value at the earliest practicable time after the land no 
        longer is needed for a noise compatibility purpose;
            (ii) the disposition will be subject to retaining or 
        reserving an interest in the land necessary to ensure that the 
        land will be used in a way that is compatible with noise levels 
        associated with operating the airport; and
            (iii) the part of the proceeds from disposing of the land 
        that is proportional to the Government's share of the cost of 
        acquiring the land will be paid to the Secretary for deposit in 
        the Airport and Airway Trust Fund established under section 9502 
        of the Internal Revenue Code of 1986 (26 U.S.C. 9502) or, as the 
        Secretary prescribes, reinvested in an approved noise 
        compatibility project; or

        (B) if the land was or will be acquired for an airport purpose 
    (except a noise compatibility purpose)--
            (i) the owner or operator, when the land no longer is needed 
        for an airport purpose, will dispose of the land at fair market 
        value or make available to the Secretary an amount equal to the 
        Government's proportional share of the fair market value;
            (ii) the disposition will be subject to retaining or 
        reserving an interest in the land necessary to ensure that the 
        land will be used in a way that is compatible with noise levels 
        associated with operating the airport; and
            (iii) the part of the proceeds from disposing of the land 
        that is proportional to the Government's share of the cost of 
        acquiring the land will be reinvested, on application to the 
        Secretary, in another eligible airport development project the 
        Secretary approves under this subchapter or paid to the 
        Secretary for deposit in the Fund if another eligible project 
        does not exist.

    (3) Proceeds referred to in paragraph (2)(A)(iii) and (B)(iii) of 
this subsection and deposited in the Airport and Airway Trust Fund are 
available as provided in subsection (f) of this section.
    (d) Assurances of Continuation as Public-Use Airport.--The Secretary 
of Transportation may approve an application under this subchapter for 
an airport development project grant for a privately owned public-use 
airport only if the Secretary receives appropriate assurances that the 
airport will continue to function as a public-use airport during the 
economic life (that must be at least 10 years) of any facility at the 
airport that was developed with Government financial assistance under 
this subchapter.
    (e) Written Assurances of Opportunities for Small Business 
Concerns.--(1) The Secretary of Transportation may approve a project 
grant application under this subchapter for an airport development 
project only if the Secretary receives written assurances, satisfactory 
to the Secretary, that the airport owner or operator will take necessary 
action to ensure, to the maximum extent practicable, that at least 10 
percent of all businesses at the airport selling consumer products or 
providing consumer services to the public are small business concerns 
(as defined by regulations of the Secretary) owned and controlled by a 
socially and economically disadvantaged individual (as defined in 
section 47113(a) of this title) or qualified HUBZone small business 
concerns (as defined in section 3(p) of the Small Business Act).
    (2) An airport owner or operator may meet the percentage goal of 
paragraph (1) of this subsection by including any business operated 
through a management contract or subcontract. The dollar amount of a 
management contract or subcontract with a disadvantaged business 
enterprise shall be added to the total participation by disadvantaged 
business enterprises in airport concessions and to the base from which 
the airport's percentage goal is calculated. The dollar amount of a 
management contract or subcontract with a non-disadvantaged business 
enterprise and the gross revenue of business activities to which the 
management contract or subcontract pertains may not be added to this 
base.
    (3) Except as provided in paragraph (4) of this subsection, an 
airport owner or operator may meet the percentage goal of paragraph (1) 
of this subsection by including the purchase from disadvantaged business 
enterprises of goods and services used in businesses conducted at the 
airport, but the owner or operator and the businesses conducted at the 
airport shall make good faith efforts to explore all available options 
to achieve, to the maximum extent practicable, compliance with the goal 
through direct ownership arrangements, including joint ventures and 
franchises.
    (4)(A) In complying with paragraph (1) of this subsection, an 
airport owner or operator shall include the revenues of car rental firms 
at the airport in the base from which the percentage goal in paragraph 
(1) is calculated.
    (B) An airport owner or operator may require a car rental firm to 
meet a requirement under paragraph (1) of this subsection by purchasing 
or leasing goods or services from a disadvantaged business enterprise. 
If an owner or operator requires such a purchase or lease, a car rental 
firm shall be permitted to meet the requirement by including purchases 
or leases of vehicles from any vendor that qualifies as a small business 
concern owned and controlled by a socially and economically 
disadvantaged individual or as a qualified HUBZone small business 
concern (as defined in section 3(p) of the Small Business Act).
    (C) This subsection does not require a car rental firm to change its 
corporate structure to provide for direct ownership arrangements to meet 
the requirements of this subsection.
    (5) This subsection does not preempt--
        (A) a State or local law, regulation, or policy enacted by the 
    governing body of an airport owner or operator; or
        (B) the authority of a State or local government or airport 
    owner or operator to adopt or enforce a law, regulation, or policy 
    related to disadvantaged business enterprises.

    (6) An airport owner or operator may provide opportunities for a 
small business concern owned and controlled by a socially and 
economically disadvantaged individual or a qualified HUBZone small 
business concern (as defined in section 3(p) of the Small Business Act) 
to participate through direct contractual agreement with that concern.
    (7) An air carrier that provides passenger or property-carrying 
services or another business that conducts aeronautical activities at an 
airport may not be included in the percentage goal of paragraph (1) of 
this subsection for participation of small business concerns at the 
airport.
    (8) Not later than April 29, 1993, the Secretary of Transportation 
shall prescribe regulations to carry out this subsection.
    (f) Availability of Amounts.--An amount deposited in the Airport and 
Airway Trust Fund under--
        (1) subsection (c)(2)(A)(iii) of this section is available to 
    the Secretary of Transportation to make a grant for airport 
    development or airport planning under section 47104 of this title;
        (2) subsection (c)(2)(B)(iii) of this section is available to 
    the Secretary--
            (A) to make a grant for a purpose described in section 
        47115(b) of this title; and
            (B) for use under section 47114(d)(2) of this title at 
        another airport in the State in which the land was disposed of 
        under subsection (c)(2)(B)(ii) of this section; and

        (3) subsection (c)(2)(B)(iii) of this section is in addition to 
    an amount made available to the Secretary under section 48103 of 
    this title and not subject to apportionment under section 47114 of 
    this title.

    (g) Ensuring Compliance.--(1) To ensure compliance with this 
section, the Secretary of Transportation--
        (A) shall prescribe requirements for sponsors that the Secretary 
    considers necessary; and
        (B) may make a contract with a public agency.

    (2) The Secretary of Transportation may approve an application for a 
project grant only if the Secretary is satisfied that the requirements 
prescribed under paragraph (1)(A) of this subsection have been or will 
be met.
    (h) Modifying Assurances and Requiring Compliance With Additional 
Assurances.--Before modifying an assurance required of a person 
receiving a grant under this subchapter and in effect after December 29, 
1987, or to require compliance with an additional assurance from the 
person, the Secretary of Transportation must--
        (1) publish notice of the proposed modification in the Federal 
    Register; and
        (2) provide an opportunity for comment on the proposal.

    (i) Relief From Obligation To Provide Free Space.--When a sponsor 
provides a property interest in a land or water area or a building that 
the Secretary of Transportation uses to construct a facility at 
Government expense, the Secretary may relieve the sponsor from an 
obligation in a contract made under this chapter, the Airport and Airway 
Development Act of 1970, or the Federal Airport Act to provide free 
space to the Government in an airport building, to the extent the 
Secretary finds that the free space no longer is needed to carry out 
activities related to air traffic control or navigation.
    (j) Use of Revenue in Hawaii.--(1) In this subsection--
        (A) ``duty-free merchandise'' and ``duty-free sales enterprise'' 
    have the same meanings given those terms in section 555(b)(8) of the 
    Tariff Act of 1930 (19 U.S.C. 1555(b)(8)).
        (B) ``highway'' and ``Federal-aid system'' have the same 
    meanings given those terms in section 101(a) of title 23.

    (2) Notwithstanding subsection (b)(1) of this section, Hawaii may 
use, for a project for construction or reconstruction of a highway on a 
Federal-aid system that is not more than 10 miles by road from an 
airport and that will facilitate access to the airport, revenue from the 
sales at off-airport locations in Hawaii of duty-free merchandise under 
a contract between Hawaii and a duty-free sales enterprise. However, the 
revenue resulting during a Hawaiian fiscal year may be used only if the 
amount of the revenue, plus amounts Hawaii receives in the fiscal year 
from all other sources for costs Hawaii incurs for operating all 
airports it operates and for debt service related to capital projects 
for the airports (including interest and amortization of principal 
costs), is more than 150 percent of the projected costs for the fiscal 
year.
    (3)(A) Revenue from sales referred to in paragraph (2) of this 
subsection in a Hawaiian fiscal year that Hawaii may use may not be more 
than the amount that is greater than 150 percent as determined under 
paragraph (2).
    (B) The maximum amount of revenue Hawaii may use under paragraph (2) 
of this subsection is $250,000,000.
    (4) If a fee imposed or collected for rent, landing, or service from 
an aircraft operator by an airport operated by Hawaii is increased 
during the period from May 4, 1990, through December 31, 1994, by more 
than the percentage change in the Consumer Price Index of All Urban 
Consumers for Honolulu, Hawaii, that the Secretary of Labor publishes 
during that period and if revenue derived from the fee increases because 
the fee increased, the amount under paragraph (3)(B) of this subsection 
shall be reduced by the amount of the projected revenue increase in the 
period less the part of the increase attributable to changes in the 
Index in the period.
    (5) Hawaii shall determine costs, revenue, and projected revenue 
increases referred to in this subsection and shall submit the 
determinations to the Secretary of Transportation. A determination is 
approved unless the Secretary disapproves it not later than 30 days 
after it is submitted.
    (6) Hawaii is not eligible for a grant under section 47115 of this 
title in a fiscal year in which Hawaii uses under paragraph (2) of this 
subsection revenue from sales referred to in paragraph (2). Hawaii shall 
repay amounts it receives in a fiscal year under a grant it is not 
eligible to receive because of this paragraph to the Secretary of 
Transportation for deposit in the discretionary fund established under 
section 47115.
    (7)(A) This subsection applies only to revenue from sales referred 
to in paragraph (2) of this subsection from May 5, 1990, through 
December 30, 1994, and to amounts in the Airport Revenue Fund of Hawaii 
that are attributable to revenue before May 4, 1990, on sales referred 
to in paragraph (2).
    (B) Revenue from sales referred to in paragraph (2) of this 
subsection from May 5, 1990, through December 30, 1994, may be used 
under paragraph (2) in any Hawaiian fiscal year, including a Hawaiian 
fiscal year beginning after December 31, 1994.
    (k) Annual Summaries of Financial Reports.--The Secretary shall 
provide to the Committee on Commerce, Science, and Transportation of the 
Senate and the Committee on Transportation and Infrastructure of the 
House of Representatives an annual summary of the reports submitted to 
the Secretary under subsection (a)(19) of this section and under section 
111(b) of the Federal Aviation Administration Authorization Act of 1994.
    (l) Policies and Procedures To Ensure Enforcement Against Illegal 
Diversion of Airport Revenue.--
        (1) In general.--Not later than 90 days after August 23, 1994, 
    the Secretary of Transportation shall establish policies and 
    procedures that will assure the prompt and effective enforcement of 
    subsections (a)(13) and (b) of this section and grant assurances 
    made under such subsections. Such policies and procedures shall 
    recognize the exemption provision in subsection (b)(2) of this 
    section and shall respond to the information contained in the 
    reports of the Inspector General of the Department of Transportation 
    on airport revenue diversion and such other relevant information as 
    the Secretary may by law consider.
        (2) Revenue diversion.--Policies and procedures to be 
    established pursuant to paragraph (1) of this subsection shall 
    prohibit, at a minimum, the diversion of airport revenues (except as 
    authorized under subsection (b) of this section) through--
            (A) direct payments or indirect payments, other than 
        payments reflecting the value of services and facilities 
        provided to the airport;
            (B) use of airport revenues for general economic 
        development, marketing, and promotional activities unrelated to 
        airports or airport systems;
            (C) payments in lieu of taxes or other assessments that 
        exceed the value of services provided; or
            (D) payments to compensate nonsponsoring governmental bodies 
        for lost tax revenues exceeding stated tax rates.

        (3) Efforts to be self-sustaining.--With respect to subsection 
    (a)(13) of this section, policies and procedures to be established 
    pursuant to paragraph (1) of this subsection shall take into 
    account, at a minimum, whether owners and operators of airports, 
    when entering into new or revised agreements or otherwise 
    establishing rates, charges, and fees, have undertaken reasonable 
    efforts to make their particular airports as self-sustaining as 
    possible under the circumstances existing at such airports.
        (4) Administrative safeguards.--Policies and procedures to be 
    established pursuant to paragraph (1) shall mandate internal 
    controls, auditing requirements, and increased levels of Department 
    of Transportation personnel sufficient to respond fully and promptly 
    to complaints received regarding possible violations of subsections 
    (a)(13) and (b) of this section and grant assurances made under such 
    subsections and to alert the Secretary to such possible violations.
        (5) Statute of limitations.--In addition to the statute of 
    limitations specified in subsection (n)(7), with respect to project 
    grants made under this chapter--
            (A) any request by a sponsor to any airport for additional 
        payments for services conducted off of the airport or for 
        reimbursement for capital contributions or operating expenses 
        shall be filed not later than 6 years after the date on which 
        the expense is incurred; and
            (B) any amount of airport funds that are used to make a 
        payment or reimbursement as described in subparagraph (A) after 
        the date specified in that subparagraph shall be considered to 
        be an illegal diversion of airport revenues that is subject to 
        subsection (n).

    (m) Audit Certification.--
        (1) In general.--The Secretary of Transportation, acting through 
    the Administrator of the Federal Aviation Administration, shall 
    promulgate regulations that require a recipient of a project grant 
    (or any other recipient of Federal financial assistance that is 
    provided for an airport) to include as part of an annual audit 
    conducted under sections 7501 through 7505 of title 31, a review and 
    opinion of the review concerning the funding activities with respect 
    to an airport that is the subject of the project grant (or other 
    Federal financial assistance) and the sponsors, owners, or operators 
    (or other recipients) involved.
        (2) Content of review.--A review conducted under paragraph (1) 
    shall provide reasonable assurances that funds paid or transferred 
    to sponsors are paid or transferred in a manner consistent with the 
    applicable requirements of this chapter and any other applicable 
    provision of law (including regulations promulgated by the Secretary 
    or the Administrator).
        (3) Requirements for audit report.--The report submitted to the 
    Secretary under this subsection shall include a specific 
    determination and opinion regarding the appropriateness of the 
    disposition of airport funds paid or transferred to a sponsor.

    (n) Recovery of Illegally Diverted Funds.--
        (1) In general.--Not later than 180 days after the issuance of 
    an audit or any other report that identifies an illegal diversion of 
    airport revenues (as determined under subsections (b) and (l) and 
    section 47133), the Secretary, acting through the Administrator, 
    shall--
            (A) review the audit or report;
            (B) perform appropriate factfinding; and
            (C) conduct a hearing and render a final determination 
        concerning whether the illegal diversion of airport revenues 
        asserted in the audit or report occurred.

        (2) Notification.--Upon making such a finding, the Secretary, 
    acting through the Administrator, shall provide written notification 
    to the sponsor and the airport of--
            (A) the finding; and
            (B) the obligations of the sponsor to reimburse the airport 
        involved under this paragraph.

        (3) Administrative action.--The Secretary may withhold any 
    amount from funds that would otherwise be made available to the 
    sponsor, including funds that would otherwise be made available to a 
    State, municipality, or political subdivision thereof (including any 
    multimodal transportation agency or transit authority of which the 
    sponsor is a member entity) as part of an apportionment or grant 
    made available pursuant to this title, if the sponsor--
            (A) receives notification that the sponsor is required to 
        reimburse an airport; and
            (B) has had an opportunity to reimburse the airport, but has 
        failed to do so.

        (4) Civil action.--If a sponsor fails to pay an amount specified 
    under paragraph (3) during the 180-day period beginning on the date 
    of notification and the Secretary is unable to withhold a sufficient 
    amount under paragraph (3), the Secretary, acting through the 
    Administrator, may initiate a civil action under which the sponsor 
    shall be liable for civil penalty in an amount equal to the illegal 
    diversion in question plus interest (as determined under subsection 
    (o)).
        (5) Disposition of penalties.--
            (A) Amounts withheld.--The Secretary or the Administrator 
        shall transfer any amounts withheld under paragraph (3) to the 
        Airport and Airway Trust Fund.
            (B) Civil penalties.--With respect to any amount collected 
        by a court in a civil action under paragraph (4), the court 
        shall cause to be transferred to the Airport and Airway Trust 
        Fund any amount collected as a civil penalty under paragraph 
        (4).

        (6) Reimbursement.--The Secretary, acting through the 
    Administrator, shall, as soon as practicable after any amount is 
    collected from a sponsor under paragraph (4), cause to be 
    transferred from the Airport and Airway Trust Fund to an airport 
    affected by a diversion that is the subject of a civil action under 
    paragraph (4), reimbursement in an amount equal to the amount that 
    has been collected from the sponsor under paragraph (4) (including 
    any amount of interest calculated under subsection (o)).
        (7) Statute of limitations.--No person may bring an action for 
    the recovery of funds illegally diverted in violation of this 
    section (as determined under subsections (b) and (l)) or section 
    47133 after the date that is 6 years after the date on which the 
    diversion occurred.

    (o) Interest.--
        (1) In general.--Except as provided in paragraph (2), the 
    Secretary, acting through the Administrator, shall charge a minimum 
    annual rate of interest on the amount of any illegal diversion of 
    revenues referred to in subsection (n) in an amount equal to the 
    average investment interest rate for tax and loan accounts of the 
    Department of the Treasury (as determined by the Secretary of the 
    Treasury) for the applicable calendar year, rounded to the nearest 
    whole percentage point.
        (2) Adjustment of interest rates.--If, with respect to a 
    calendar quarter, the average investment interest rate for tax and 
    loan accounts of the Department of the Treasury exceeds the average 
    investment interest rate for the immediately preceding calendar 
    quarter, rounded to the nearest whole percentage point, the 
    Secretary of the Treasury may adjust the interest rate charged under 
    this subsection in a manner that reflects that change.
        (3) Accrual.--Interest assessed under subsection (n) shall 
    accrue from the date of the actual illegal diversion of revenues 
    referred to in subsection (n).
        (4) Determination of applicable rate.--The applicable rate of 
    interest charged under paragraph (1) shall--
            (A) be the rate in effect on the date on which interest 
        begins to accrue under paragraph (3); and
            (B) remain at a rate fixed under subparagraph (A) during the 
        duration of the indebtedness.

    (p) Payment by Airport to Sponsor.--If, in the course of an audit or 
other review conducted under this section, the Secretary or the 
Administrator determines that an airport owes a sponsor funds as a 
result of activities conducted by the sponsor or expenditures by the 
sponsor for the benefit of the airport, interest on that amount shall be 
determined in the same manner as provided in paragraphs (1) through (4) 
of subsection (o), except that the amount of any interest assessed under 
this subsection shall be determined from the date on which the Secretary 
or the Administrator makes that determination.

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1256; Pub. L. 103-
305, title I, Secs. 111(a), (c), 112(a), Aug. 23, 1994, 108 Stat. 1573, 
1574; Pub. L. 104-264, title I, Sec. 143, title VIII, Sec. 805(a), 
(b)(2), Oct. 9, 1996, 110 Stat. 3221, 3271, 3274; Pub. L. 104-287, 
Sec. 5(9), (80), Oct. 11, 1996, 110 Stat. 3389, 3397; Pub. L. 105-135, 
title VI, Sec. 604(h)(1), Dec. 2, 1997, 111 Stat. 2634.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
           Revised  Section                    Source (U.S. Code)              
 Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
47107(a)..............................  49 App.:2202(a)(6).              Sept. 
3, 1982, Pub. L. 97-248, Secs.
                                                                          503(a
)(6), 505(b)(2), 509(b)(1)(E),
                                                                          511(a
)(1)(B), (C), (2), (5)-(10), (b),
                                                                          96 St
at. 673, 677, 683, 686, 687.
                                        49 App.:2208(b)(1)(E) (related
                                         to 49 App.:2210(a) (1)-(11),
                                         (15), (16)).
                                        49 App.:2210(a)(1)(A).           Sept. 
3, 1982, Pub. L. 97-248, Sec.
                                                                          511(a
)(1)(A), 96 Stat. 686; Dec. 30,
                                                                          1987,
 Pub. L. 100-223, Sec.  109(a),
                                                                          101 S
tat. 1499.
                                        49 App.:2210(a)(1)(B), (C),
                                         (2).
                                        49 App.:2210(a)(3).              Sept. 
3, 1982, Pub. L. 97-248, Sec.
                                                                          511(a
)(3), 96 Stat. 686; Dec. 30,
                                                                          1987,
 Pub. L. 100-223, Sec.  109(b),
                                                                          101 S
tat. 1499.
                                        49 App.:2210(a)(4).              Sept. 
3, 1982, Pub. L. 97-248, Sec.
                                                                          511(a
)(4), 96 Stat. 686; restated Dec.
                                                                          30, 1
987, Pub. L. 100-223, Sec.
                                                                          109(c
), 101 Stat. 1499.
                                        49 App.:2210(a) (5)-(10).
                                        49 App.:2210(a)(11).             Sept. 
3, 1982, Pub. L. 97-248, Sec.
                                                                          511(a
)(11), 96 Stat. 687; Oct. 31,
                                                                          1992,
 Pub. L. 102-581, Sec.  113(a),
                                                                          106 S
tat. 4881.
                                        49 App.:2210(a)(15).             Sept. 
3, 1982, Pub. L. 97-248, 96 Stat.
                                                                          324, 
Sec.  511(a)(15); added Dec. 30,
                                                                          1987,
 Pub. L. 100-223, Sec.  109(f),
                                                                          101 S
tat. 1500.
                                        49 App.:2210(a)(16).             Sept. 
3, 1982, Pub. L. 97-248, 96 Stat.
                                                                          324, 
Sec.  511(a)(16); added Dec. 30,
                                                                          1987,
 Pub. L. 100-223, Sec.  109(g),
                                                                          101 S
tat. 1501.
47107(b)(1), (2)......................  49 App.:2208(b)(1)(E) (related
                                         to 49 App.:2210(a)(12)).
                                        49 App.:2210(a)(12).             Sept. 
3, 1982, Pub. L. 97-248, Sec.
                                                                          511(a
)(12), 96 Stat. 687; restated
                                                                          Dec. 
30, 1987, Pub. L. 100-223, Sec.
                                                                          109(d
), 101 Stat. 1499.
47107(b)(3)...........................  49 App.:2210(d).                 Sept. 
3, 1982, Pub. L. 97-248, 96 Stat.
                                                                          324, 
Sec.  511(d); added Dec. 30,
                                                                          1987,
 Pub. L. 100-223, Sec.  109(i),
                                                                          101 S
tat. 1501.
47107(c)(1), (2)......................  49 App.:2202(a)(24).             Sept. 
3, 1982, Pub. L. 97-248, Sec.
                                                                          503(a
)(24), 96 Stat. 674; Dec. 30,
                                                                          1987,
 Pub. L. 100-223, Sec.
                                                                          103(c
)(1), 101 Stat. 1488.
                                        49 App.:2208(b)(1)(E) (related
                                         to 49 App.:2210(a)(13), (14)).
                                        49 App.:2210(a)(13).             Sept. 
3, 1982, Pub. L. 97-248, Sec.
                                                                          511(a
)(13), 96 Stat. 688; restated
                                                                          Dec. 
30, 1987, Pub. L. 100-223, Sec.
                                                                          109(e
), 101 Stat. 1499.
                                        49 App.:2210(a)(14).             Sept. 
3, 1982, Pub. L. 97-248, Sec.
                                                                          511(a
)(14), 96 Stat. 688; Dec. 30,
                                                                          1987,
 Pub. L. 100-223, Sec.  109(e),
                                                                          101 S
tat. 1499; restated Dec. 15,
                                                                          1989,
 Pub. L. 101-236, Sec.  4, 103
                                                                          Stat.
 2061.
47107(c)(3)...........................  (no source).
47107(d)..............................  49 App.:2204(b)(2).
                                        49 App.:2208(b)(1)(E) (related
                                         to 49 App.:2204(b)(2)).
47107(e)..............................  49 App.:2208(b)(1)(E) (related
                                         to 49 App.:2210(a)(17)).
                                        49 App.:2210(a)(17).             Sept. 
3, 1982, Pub. L. 97-248, 96 Stat.
                                                                          324, 
Sec.  511(a)(17); added Dec. 30,
                                                                          1987,
 Pub. L. 100-223, Sec.  109(h),
                                                                          101 S
tat. 1501; Oct. 31, 1992, Pub. L.
                                                                          102-5
81, Sec.  117(a), 106 Stat. 4882.
                                        49 App.:2210(h).                 Sept. 
3, 1982, Pub. L. 97-248, 96 Stat.
                                                                          324, 
Sec.  511(h); added Oct. 31,
                                                                          1992,
 Pub. L. 102-581, Sec.  117(b),
                                                                          106 S
tat. 4882.
                                        49 App.:2210 (note).             Oct. 3
1, 1992, Pub. L. 102-581, Sec.
                                                                          117(d
), 106 Stat. 4883.
47107(f)..............................  49 App.:2210(e).                 Sept. 
3, 1982, Pub. L. 97-248, 96 Stat.
                                                                          324, 
Sec.  511(e); added Dec. 30,
                                                                          1987,
 Pub. L. 100-223, Sec.  109(j),
                                                                          101 S
tat. 1501.
47107(g)(1)...........................  49 App.:2210(b) (1st, 2d
                                         sentences).
47107(g)(2)...........................  49 App.:2208(b)(1)(E) (related
                                         to 49 App.:2210(b)).
47107(h)..............................  49 App.:2210(f).                 Sept. 
3, 1982, Pub. L. 97-248, 96 Stat.
                                                                          324, 
Sec.  511(f); added Dec. 30,
                                                                          1987,
 Pub. L. 100-223, Sec.  109(k),
                                                                          101 S
tat. 1502.
47107(i)..............................  49 App.:2210(b) (last
                                         sentence).
47107(j)(1)...........................  49 App.:2210(g)(4)(B), (D).      Sept. 
3, 1982, Pub. L. 97-248, 96 Stat.
                                                                          324, 
Sec.  511(g); added May 4, 1990,
                                                                          Pub. 
L. 101-281, Sec.  2, 104 Stat.
                                                                          164.
47107(j)(2)...........................  49 App.:2210(g)(1), (2)(B),
                                         (4)(A), (C).
47107(j)(3)...........................  49 App.:2210(g)(2)(C), (D).
47107(j)(4)...........................  49 App.:2210(g)(2)(E).
47107(j)(5)...........................  49 App.:2210(g)(2)(F).
47107(j)(6)...........................  49 App.:2210(g)(2)(G).
47107(j) (7)(A).......................  49 App.:2210(g)(2)(A).
47107(j) (7)(B).......................  49 App.:2210(g)(3).
-------------------------------------------------------------------------------
---------------------------------

    In subsection (a), before clause (1), the words ``may approve a 
project grant application under this subchapter for an airport 
development project only if'' are substituted for 49 App.:2208(b)(1)(E) 
(related to 49 App.:2210(a)) and the words ``As a condition precedent to 
approval of an airport development project contained in a project grant 
application submitted under this chapter . . . shall'' in 49 
App.:2210(a) for clarity and to eliminate unnecessary words. In clause 
(1), the words ``to which the project relates'' and ``fair and'' are 
omitted as surplus. In clause (2), before subclause (A), the words 
``including the requirement that'' are omitted as unnecessary because of 
the restatement. The words ``air carriers making similar use of the 
airport'' are substituted for ``each air carrier using such airport 
(whether as a tenant, nontenant, or subtenant of another air carrier 
tenant) . . . all such air carriers which make similar use of such 
airport'' to eliminate unnecessary words. The words ``and which utilize 
similar facilities'' are omitted because of the definition of 
``airport'' in section 47102 of the revised title. The words 
``nondiscriminatory and'' and ``rates, fees, rentals, and other'' are 
omitted as surplus. In subclause (B), before subclause (i), the words 
``except for differences based on'' are substituted for ``subject to'' 
for clarity. In clause (3), the words ``airport operator'' are 
substituted for ``airport'' for clarity and consistency in this chapter. 
In clause (4), before subclause (A), the words ``a right given to only 
one fixed-base operator to provide services at an airport'' are 
substituted for ``the providing of services at an airport by a single 
fixed-based operator'' for clarity. In subclause (B), the words ``the 
airport operator or owner'' are substituted for ``such airport'' for 
clarity and consistency in this subchapter. Clause (5) is substituted 
for 49 App.:2210(a)(1)(B) for consistency and to eliminate unnecessary 
words. In clause (6), the words ``allowed by the airport operator'' are 
substituted for ``authorized by the airport or permitted by the 
airport'' for clarity and consistency in this chapter and to eliminate 
unnecessary words. In clause (9), the words ``operations at'' are added 
for clarity. The words ``adequately'', ``removing, lowering, relocating, 
marking, or lighting or otherwise'', and ``the establishment or creation 
of'' are omitted as surplus. In clause (10), the word ``near'' is 
substituted for ``in the immediate vicinity of'', and the word ``uses'' 
is substituted for ``activities and purposes'', to eliminate unnecessary 
words. The words ``including landing and takeoff of aircraft'' are 
omitted as surplus. In clause (12), the words ``property interests of 
the sponsor in land or water areas or buildings'' are substituted for 
``any areas of land or water, or estate therein, or rights in buildings 
of the sponsor'' for consistency in the revised title and to eliminate 
unnecessary words. The words ``necessary or'' are omitted as surplus. 
The words ``for, and that will be used for, constructing . . . 
facilities for carrying out activities related to air traffic control or 
navigation'' are substituted for ``for use in connection with any air 
traffic control or navigation activities, or weather-reporting and 
communication activities related to air traffic control . . . for 
construction . . . of space or facilities for such purposes'' to 
eliminate unnecessary words. In clause (13), before subclause (A), the 
words ``schedule of charges'' are substituted for ``fee and rental 
structure'' for clarity and consistency in this chapter. In subclause 
(A), the word ``particular'' is omitted as surplus. The word 
``including'' is substituted for ``taking into account such factors as'' 
to eliminate unnecessary words. In subclause (B), the words ``fees, 
rates, and'' are omitted as surplus. The words ``airport development or 
airport planning'' are omitted because of the definition of ``project'' 
in section 47102 of the revised title. In clause (16), before subclause 
(A), the words ``maintain . . . current'' are substituted for ``keep up 
to date at all times'' to eliminate unnecessary words. In subclause (B), 
the words ``be submitted to, and'' and ``amendment'' are omitted as 
surplus. In subclauses (C) and (D), the words ``changes or'' and 
``change or'', respectively, are omitted as surplus. In subclause 
(D)(ii), the words ``was made'' are added for clarity. In clause (17), 
the words ``with respect to the project'' are omitted as surplus. In 
clause (18), the words ``duly authorized agent of'' are omitted because 
of 49:322(b).
    In subsection (b)(1), before clause (A), the words ``may approve a 
project grant application under this subchapter for an airport 
development project only if'' are substituted for 49 App.:2208(b)(1)(E) 
(related to 49 App.:2210(a)(12)) and ``As a condition precedent to 
approval of an airport development project contained in a project grant 
application submitted under this chapter . . . shall'' in 49 
App.:2210(a) for clarity and to eliminate unnecessary words. In clause 
(C) the word ``actual'' is omitted as surplus.
    In subsection (b)(2), the words ``Paragraph (1) of this subsection 
does not apply'' are substituted for ``except that . . . then this 
limitation on the use of all other revenues generated by the airport . . 
. shall not apply'' to eliminate unnecessary words. The word ``law'' is 
substituted for ``provisions . . . in governing statutes'' for 
consistency in the revised title and to eliminate unnecessary words.
    In subsection (c)(1), before clause (A), the words ``considered to 
be'' are omitted as surplus. In clause (B), the words ``department, 
agency, or instrumentality of the Government'' are substituted for 
``Federal agency'' for consistency in the revised title and with other 
titles of the United States Code.
    In subsection (c)(2), before clause (A), the words ``may approve an 
application under this subchapter for an airport development project 
grant only if'' are substituted for 49 App.:2208(b)(1)(E) (related to 49 
App.:2210(a)(13), (14)) and ``As a condition precedent to approval of an 
airport development project contained in a project grant application 
submitted under this chapter'' in 49 App.:2210(a) for clarity and to 
eliminate unnecessary words. The words ``has received or will receive'' 
are substituted for ``before, on, or after December 30, 1987'' and 
``before, on, or after December 31, 1987'' because of the restatement. 
In clauses (A)(ii) and (B)(ii), the words ``or right'' and ``only'' are 
omitted as surplus. In clause (A)(iii), the words ``at the discretion of 
the Secretary'' in 49 App.:2210(a)(13)(C) are omitted as surplus. In 
clause (B)(iii), the words ``under this subchapter'' are substituted for 
``at that airport or within the national airport system'' for clarity 
and to eliminate unnecessary words.
    Subsection (c)(3) is added for clarity.
    In subsection (d), the words ``may approve an application under this 
subchapter for an airport development project grant . . . only if'' are 
substituted for 49 App.:2208(b)(1)(E) (related to 49 App.:2204(b)(2)) 
and ``No obligation shall be incurred by the Secretary for airport 
development . . . unless'' in 49 App.:2204(b) for clarity and to 
eliminate unnecessary words.
    In subsection (e)(1), the words ``may approve a project grant 
application under this subchapter for an airport development project 
only if'' are substituted for 49 App.:2208(b)(1)(E) (related to 49 
App.:2210(a)(17)) and ``As a condition precedent to approval of an 
airport development project contained in a project grant application 
submitted under this chapter . . . shall'' for clarity and to eliminate 
unnecessary words. The words ``food, beverages, printed materials, or 
other'' and ``ground transportation, baggage carts, automobile rentals, 
or other'' are omitted as surplus.
    In subsection (e)(2)-(5), the words ``disadvantaged business 
enterprise'' are substituted for ``DBE'' for clarity.
    In subsection (e)(4), the words ``(as defined by the Secretary by 
regulation)'' and ``(as defined under section 2204(d)(2)(B) of this 
title)'' are omitted as unnecessary because of paragraph (1) of this 
subsection.
    In subsection (f)(2)(A), the words ``at the discretion of the 
Secretary'' are omitted as surplus. The words ``at primary airports and 
reliever airports'' are omitted as surplus because 49 App.:2206(c)(2), 
restated in section 47115(c) of the revised title, involves only primary 
and reliever airports.
    In subsection (g)(1)(A), the words ``consistent with the terms of 
this chapter'' are omitted as surplus.
    In subsection (g)(1)(B), the words ``Among other steps to insure 
such compliance'' and ``on behalf of the United States'' are omitted as 
surplus.
    In subsection (g)(2), the words ``by or . . . the authority of'' are 
omitted as surplus.
    In subsection (h), before clause (1), the words ``proposes to'' are 
omitted as surplus. The word ``subchapter'' is substituted for ``Act'' 
in section 511(f) of the Airport and Airway Improvement Act of 1982, as 
added by section 109(k) of the Airport and Airway Safety and Capacity 
Expansion Act of 1987 (Public Law 100-223, 101 Stat. 1502), to correct a 
mistake.
    In subsection (i), the words ``a property interest in a land or 
water area or a building that the Secretary of Transportation uses to 
construct a facility'' are substituted for ``any area of land or water, 
or estate therein, or rights in buildings of the sponsor and constructs 
space or facilities thereon'' for consistency in this section.
    In subsection (j)(2), the words ``the limitation on the use of 
revenues generated by airports contained in'', ``located'', ``of 
funds'', and ``(including revenues generated by such airports from other 
sources, unrestricted cash on hand, and Federal funds made available 
under this chapter for expenditure at such airports)'' are omitted as 
surplus.
    In subsection (j)(3)(A), the words ``amount that is greater than 150 
percent as determined'' are substituted for ``amount of the excess 
determined'' for clarity.
    In subsection (j)(3)(B), the words ``in the aggregate'' are omitted 
as surplus.
    In subsection (j)(4), the word ``imposed'' is substituted for 
``levied'' for consistency in the revised title and with other titles of 
the Code. The words ``for the use of airport facilities'' and ``a 
percentage which is'' are omitted as surplus. The words ``Secretary of 
Labor'' are substituted for ``Bureau of Labor Statistics of the 
Department of Labor'' because of 29:551 and 557.
    In subsection (j)(5), the words ``from fee increases'' and ``for 
approval'' are omitted as surplus.

                       References in Text

    The Federal Airport Act, referred to in subsecs. (a)(13)(B) and (i), 
is act May 13, 1946, ch. 251, 60 Stat. 170, as amended, which was 
classified to chapter 14 (Sec. 1101 et seq.) of former Title 49, 
Transportation, prior to repeal by Pub. L. 91-258, title I, Sec. 52(a), 
May 21, 1970, 84 Stat. 235.
    The Airport and Airway Development Act of 1970, referred to in 
subsecs. (a)(13)(B) and (i), is title I of Pub. L. 91-258, May 21, 1970, 
84 Stat. 219, as amended, which was classified principally to chapter 25 
(Sec. 1701 et seq.) of former Title 49, Transportation. Sections 1 
through 30 of title I of Pub. L. 91-258, which enacted sections 1701 to 
1703, 1711 to 1713, and 1714 to 1730 of former Title 49, and a provision 
set out as a note under section 1701 of former Title 49, were repealed 
by Pub. L. 97-248, title V, Sec. 523(a), Sept. 3, 1982, 96 Stat. 695. 
Sections 31, 51, 52(a), (b)(4), (6), (c), (d), and 53 of title I of Pub. 
L. 91-258 were repealed by Pub. L. 103-272, Sec. 7(b), July 5, 1994, 108 
Stat. 1379, the first section of which enacted subtitles II, III, and V 
to X of Title 49, Transportation. For complete classification of this 
Act tot he Code, see Tables. For disposition of sections of former Title 
49, see table at the beginning of Title 49.
    The Federal Property and Administrative Services Act of 1949, 
referred to in subsec. (a)(17), is act June 30, 1949, ch. 288, 63 Stat. 
377, as amended. Title IX of the Act is classified generally to 
subchapter VI (Sec. 541 et seq.) of chapter 10 of Title 40, Public 
Buildings, Property, and Works. For complete classification of this Act 
to the Code, see Short Title note set out under section 471 of Title 40 
and Tables.
    Section 3(p) of the Small Business Act, referred to in subsec. 
(e)(1), (4)(B), (6), is classified to section 632(p) of Title 15, 
Commerce and Trade.
    Section 111(b) of the Federal Aviation Administration Authorization 
Act of 1994, referred to in subsec. (k), is section 111(b) of Pub. L. 
103-305, which is set out below.


                               Amendments

    1997--Subsec. (e)(1). Pub. L. 105-135, Sec. 604(h)(1)(A), inserted 
before period at end ``or qualified HUBZone small business concerns (as 
defined in section 3(p) of the Small Business Act)''.
    Subsec. (e)(4)(B). Pub. L. 105-135, Sec. 604(h)(1)(B), which 
directed the amendment of subpar. (B) by inserting before the period 
``or as a qualified HUBZone small business concern (as defined in 
section 3(p) of the Small Business Act)'', was executed by inserting the 
material before period at end of last sentence to reflect the probable 
intent of Congress.
    Subsec. (e)(6). Pub. L. 105-135, Sec. 604(h)(1)(C), inserted ``or a 
qualified HUBZone small business concern (as defined in section 3(p) of 
the Small Business Act)'' after ``disadvantaged individual''.
    1996--Subsec. (a)(20). Pub. L. 104-264, Sec. 143, added par. (20).
    Subsec. (k). Pub. L. 104-287, Sec. 5(9), substituted 
``Transportation and Infrastructure'' for ``Public Works and 
Transportation''.
    Subsec. (l)(1). Pub. L. 104-287, Sec. 5(80), substituted ``August 
23, 1994'' for ``the date of the enactment of this subsection''.
    Subsec. (l)(5). Pub. L. 104-264, Sec. 805(b)(2), added par. (5).
    Subsecs. (m) to (p). Pub. L. 104-264, Sec. 805(a), added subsecs. 
(m) to (p).
    1994--Subsec. (a)(15). Pub. L. 103-305, Sec. 111(a)(1), inserted 
before semicolon at end ``and make such reports available to the 
public''.
    Subsec. (a)(19). Pub. L. 103-305, Sec. 111(a)(2)-(4), added par. 
(19).
    Subsec. (k). Pub. L. 103-305, Sec. 111(c), added subsec. (k).
    Subsec. (l). Pub. L. 103-305, Sec. 112(a), added subsec. (l).


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-135 effective Oct. 1, 1997, see section 3 
of Pub. L. 105-135, set out as a note under section 631 of Title 15, 
Commerce and Trade.


                    Effective Date of 1996 Amendment

    Except as otherwise specifically provided, amendment by Pub. L. 104-
264 applicable only to fiscal years beginning after Sept. 30, 1996, and 
not to be construed as affecting funds made available for a fiscal year 
ending before Oct. 1, 1996, see section 3 of Pub. L. 104-264, set out as 
a note under section 106 of this title.


 Diversion of Airport Revenues for Claims Related to Certain Ceded Lands

    Pub. L. 105-66, title III, Sec. 340, Oct. 27, 1997, 111 Stat. 1448, 
provided that:
    ``(a) Findings.--The Congress finds that--
        ``(1) Congress has the authority under article I, section 8 of 
    the Constitution to regulate the air commerce of the United States;
        ``(2) section 47107 of title 49, United States Code, prohibits 
    the diversion of certain revenue generated by a public airport as a 
    condition of receiving a project grant;
        ``(3) a grant recipient that uses airport revenues for purposes 
    that are not airport-related in a manner inconsistent with chapter 
    471 of title 49, United States Code, illegally diverts airport 
    revenues;
        ``(4) illegal diversion of airport revenues undermines the 
    interest of the United States in promoting a strong national air 
    transportation system;
        ``(5) the policy of the United States that airports should be as 
    self-sustaining as possible and that revenues generated at airports 
    should not be diverted from airport purposes was stated by Congress 
    in 1982 and reaffirmed and strengthened in 1987, 1994, and 1996;
        ``(6) certain airports are constructed on lands that may have 
    belonged, at one time, to Native Americans, Native Hawaiians, or 
    Alaska Natives;
        ``(7) contrary to the prohibition against diverting airport 
    revenues from airport purposes under section 47107 of title 49, 
    United States Code, certain payments from airport revenues may have 
    been made for the betterment of Native Americans, Native Hawaiians, 
    or Alaska Natives based upon the claims related to lands ceded to 
    the United States;
        ``(8) Federal law prohibits diversions of airport revenues 
    obtained from any source whatsoever to occur in the future whether 
    related to claims for periods of time prior to or after the date of 
    enactment of this Act [Oct. 27, 1997]; and
        ``(9) because of the special circumstances surrounding such past 
    diversions of airport revenues for the betterment of Native 
    Americans, Native Hawaiians, or Alaska Natives, it is in the 
    national interest that amounts from airport revenues previously 
    received by any entity for the betterment of Native Americans, 
    Native Hawaiians, or Alaska Natives, as specified in subsection (b) 
    of this section, should not be subject to repayment.
    ``(b) Termination of Repayment Responsibility.--Notwithstanding the 
provisions of [section] 47107 of title 49, United States Code, or any 
other provision of law, monies paid for claims related to ceded lands 
and diverted from airport revenues and received prior to April 1, 1996, 
by any entity for the betterment of Native Americans, Native Hawaiians, 
or Alaska Natives, shall not be subject to repayment.
    ``(c) Prohibition on Further Diversion.--There shall be no further 
payment of airport revenues for claims related to ceded lands, whether 
characterized as operating expenses, rent, or otherwise, and whether 
related to claims for periods of time prior to or after the date of 
enactment of this Act [Oct. 27, 1997].
    ``(d) Clarification.--Nothing in this Act [see Tables for 
classification] shall be construed to affect any existing Federal 
statutes, enactments, or trust obligations created thereunder, or any 
statute of the several States that define the obligations of such States 
to Native Americans, Native Hawaiians, or Alaska Natives in connection 
with ceded lands, except to make clear that airport revenues may not be 
used to satisfy such obligations.''


                          Findings and Purpose

    Section 802 of title VIII of Pub. L. 104-264 provided that:
    ``(a) In General.--Congress finds that--
        ``(1) section 47107 of title 49, United States Code, prohibits 
    the diversion of certain revenue generated by a public airport as a 
    condition of receiving a project grant;
        ``(2) a grant recipient that uses airport revenue for purposes 
    that are not airport related in a manner inconsistent with chapter 
    471 of title 49, United States Code, illegally diverts airport 
    revenues;
        ``(3) any diversion of airport revenues in violation of the 
    condition referred to in paragraph (1) undermines the interest of 
    the United States in promoting a strong national air transportation 
    system that is responsive to the needs of airport users;
        ``(4) the Secretary and the Administrator have not enforced 
    airport revenue diversion rules adequately and must have additional 
    regulatory tools to increase enforcement efforts; and
        ``(5) sponsors who have been found to have illegally diverted 
    airport revenues--
            ``(A) have not reimbursed or made restitution to airports in 
        a timely manner; and
            ``(B) must be encouraged to do so.
    ``(b) Purpose.--The purpose of this title [see Short Title of 1996 
Amendment note set out under section 40101 of this title] is to ensure 
that airport users are not burdened with hidden taxation for unrelated 
municipal services and activities by--
        ``(1) eliminating the ability of any State or political 
    subdivision thereof that is a recipient of a project grant to divert 
    airport revenues for purposes that are not related to an airport, in 
    violation of section 47107 of title 49, United States Code;
        ``(2) imposing financial reporting requirements that are 
    designed to identify instances of illegal diversions referred to in 
    paragraph (1);
        ``(3) establishing a statute of limitations for airport revenue 
    diversion actions;
        ``(4) clarifying limitations on revenue diversion that are 
    permitted under chapter 471 of title 49, United States Code; and
        ``(5) establishing clear penalties and enforcement mechanisms 
    for identifying and prosecuting airport revenue diversion.''


                               Definitions

    Section 803 of title VIII of Pub. L. 104-264 provided that: ``For 
purposes of this title [see Short Title of 1996 Amendment note set out 
under section 40101 of this title], the following definitions apply:
        ``(1) Administrator.--The term `Administrator' means the 
    Administrator of the Federal Aviation Administration.
        ``(2) Airport.--The term `airport' has the meaning provided that 
    term in section 47102(2) of title 49, United States Code.
        ``(3) Project grant.--The term `project grant' has the meaning 
    provided that term in section 47102(14) of title 49, United States 
    Code.
        ``(4) Secretary.--The term `Secretary' means the Secretary of 
    Transportation.
        ``(5) Sponsor.--The term `sponsor' has the meaning provided that 
    term in section 47102(19) of title 49, United States Code.''


             Revision of Policies and Procedures; Deadlines

    Section 805(b)(1) of title VIII of Pub. L. 104-264 provided that: 
``Not later than 90 days after the date of the enactment of this Act 
[Oct. 9, 1996], the Secretary, acting through the Administrator, shall 
revise the policies and procedures established under section 47107(l) of 
title 49, United States Code, to take into account the amendments made 
to that section by this title.''


                          Format for Reporting

    Section 111(b) of Pub. L. 103-305 provided that: ``Within 180 days 
after the date of the enactment of this Act [Aug. 23, 1994], the 
Secretary [of Transportation] shall prescribe a uniform simplified 
format for reporting that is applicable to airports. Such format shall 
be designed to enable the public to understand readily how funds are 
collected and spent at airports, and to provide sufficient information 
relating to total revenues, operating expenditures, capital 
expenditures, debt service payments, contributions to restricted funds, 
accounts, or reserves required by financing agreements or covenants or 
airport lease or use agreements or covenants. Such format shall require 
each commercial service airport to report the amount of any revenue 
surplus, the amount of concession-generated revenue, and other 
information as required by the Secretary.''

                  Section Referred to in Other Sections

    This section is referred to in sections 46301, 47101, 47111, 47119, 
47134, 49104 of this title; title 26 section 9502.
