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H.R. 4441, Aviation Innovation, Reform, and Reauthorization Act of 2016 1 (March 9, 2016)

handle is hein.congrec/cbo2806 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE COST ESTIMATE March 9, 2016 H.R. 4441 Aviation Innovation, Reform, and Reauthorization Act of 2016 As ordered reported by the House Committee on Transportation and Infrastructure on February 11, 2016 SUMMARY H.R. 4441 would establish a federally chartered, not-for-profit corporation (known as the ATC Corporation) to assume responsibility for operating the U.S. air traffic control system, a function currently performed by the Federal Aviation Administration (FAA). The proposed corporation would be governed by a 13-member board of directors composed of individuals representing certain aviation stakeholder groups. To finance the costs of providing air traffic services, the bill would authorize the corporation to charge fees to users of such services and to issue debt. The Secretary of Transportation would manage and oversee the transition of operational control over air traffic services to the proposed corporation, which would occur on October 1, 2019. Until that time, the bill would authorize appropriations for the FAA to continue to operate, maintain, and modernize the air traffic control system and carry out the agency's other traditional responsibilities related to civil aviation. After the proposed transition of all air traffic control-related personnel and programs to the ATC Corporation, the bill would authorize additional appropriations for FAA and the Department of Transportation (DOT) to continue to meet traditional aviation-related responsibilities, such as performing certain regulatory and safety-related activities, making grants to airports to support capital projects, and subsidizing air service to certain rural communities. Although the proposed corporation would be independent and autonomous, in CBO's view it would effectively act as an agent of the federal government in carrying out a regulatory function. Hence, in keeping with guidance specified by the 1967 President's Commission on Budget Concepts, the proposed corporation's cash flows should be recorded in the federal budget. More specifically, fees charged by the proposed corporation should be recorded as federal revenues, and its expenditures should be classified as federal direct spending.