PROJECT SPONSORSHIP.

SEC. 109. PROJECT SPONSORSHIP. (a) Nondiscrimination Assurance.— Section 511(a)(1)(A) is amended— (1) by inserting “with respect to facilities directly and substantially related to providing air transportation” after “and other charges”; (2) by striking out “and combined passenger and cargo flights or all cargo flights,” and inserting in lieu thereof “and signatory carriers and nonsignatory carriers,”; (3) by inserting “or signatory” after “or status as tenant”; and (4) by striking out “on tenant air carriers,” and inserting in lieu thereof “on air carriers in such classification or status,”. (b) Approval of Nonaeronautical Closing of Airports.— Section 511(a)(3) is amended by inserting before the semicolon at the end thereof the following: “, and any proposal to temporarily close the airport for nonaeronautical purposes must first be approved by the Secretary”. (c) Terminal Airspace Assurance.— Section 511(a)(4) is amended to read as follows: “(4) appropriate action will be taken to assure that such terminal airspace as is required to protect instrument and visual operations to the airport (including established minimum flight altitudes) will be adequately cleared and protected by removing, lowering, relocating, marking, or lighting or otherwise mitigating existing airport hazards and by preventing the establishment or creation of future airport hazards;”. (d) Revenue Assurance.— Section 511(a)(12) is amended to read as follows: “(12) all revenues generated by the airport, if it is a public airport, and any local taxes on aviation fuel (other than taxes in effect on the date of the enactment of the Airport and Airway Safety and Capacity Expansion Act of 1987) will be expended for the capital or operating costs of the airport, the local airport system, or other local facilities which are owned or operated by the owner or operator of the airport and directly and substantially related to the actual air transportation of passengers or property; except that if covenants or assurances in debt obligations issued before September 3, 1982, by the owner or operator of the airport, or provisions enacted before September 3, 1982, in the governing statutes controlling the owner or operator’s financing, provide for the use of the revenues from any of the airport owner or operator’s facilities, including the airport, to support not only the airport but also the airport owner or operator’s general debt obligations or other facilities, then this limitation on the use of all other revenues generated by the airport (and, in the case of a public airport, local taxes on aviation fuel) shall not apply;”. (e) Disposal of Land Assurances.— Section 511(a) is amended by striking out paragraph (13) and inserting in lieu thereof the following new paragraphs: “(13) if the airport operator or owner receives a grant before, on, or after the date of the enactment of this paragraph for the purchase of land for airport noise compatibility purposes— “(A) the owner or operator will, when the land is no longer needed for such purposes, dispose of such land at fair market value at the earliest practicable time; 101 STAT. 1500 “(B) such disposition will be subject to the retention or reservation of any interest or right therein necessary to ensure that such land will only be used for purposes which are compatible with noise levels associated with the operation of the airport; and “(C) that portion of the proceeds of such disposition which is proportionate to the United States share of the cost of acquisition of such land will, at the discretion of the Secretary— “(i) be paid to the Secretary for deposit in the Trust Fund; or “(ii) be reinvested in an approved noise compatibility project as prescribed by the Secretary; “(14) if the airport operator or owner receives a grant before, on, or after the date of the enactment of this paragraph for the purchase of land for airport purposes (other than noise compatibility purposes)— “(A) the owner or operator will, when the land is no longer needed for airport purposes, dispose of such land at fair market value; “(B) such disposition will be subject to the retention or reservation of any interest or right therein necessary to ensure that such land will only be used for purposes which are compatible with noise levels associated with the operation of the airport; and “(C) that portion of the proceeds of such disposition which is proportionate to the United States share of the cost of acquisition of such land will be paid to the Secretary for deposit in the Trust Fund;”. (f) Airport Layout Plan Assurance.— Section 511(a) is further amended by adding at the end thereof the following new paragraph: “(15) the airport owner or operator will keep up to date at all times a layout plan of the airport which meets the following requirements: “(A) the plan will be in a form prescribed by the Secretary; “(B) before the plan and an amendment, revision, or modification thereof may take effect, the plan, amendment, revision, or modification will be submitted to, and receive approval of, the Secretary; “(C) the owner or operator will not make or permit any changes or alterations in the airport or in any of its facilities which are not in conformity with the airport layout plan as approved by the Secretary and which might, in the opinion of the Secretary, adversely affect the safety, utility, or efficiency of the airport; “(D) if a change or alteration in the airport or its facilities is made which the Secretary determines adversely affects the safety, utility, or efficiency of any federally owned, leased, or funded property on or off the airport and which is not in conformity with the airport layout plan as approved by the Secretary, the owner or operator will, if requested by the Secretary— “(i) eliminate such adverse effect in a manner approved by the Secretary; or “(ii) bear all costs of relocating such property (or replacement thereof) to a site acceptable to the Sec-101 STAT. 1501retary and all costs of restoring such property (or replacement thereof) to the level of safety, utility, efficiency, and cost of operation existing before the unapproved change in the airport or its facilities;”. (g) Assurance Relating to Contracting for Engineering and Design Services.— Section 511(a) is further amended by adding at the end thereof the following new paragraph: “(16) each contract or subcontract for program management, construction management, planning studies, feasibility studies, architectural services, preliminary engineering, design, engineering, surveying, mapping, or related services with respect to the project will be awarded in the same manner as a contract for architectural and engineering services is negotiated under title IX of the Federal Property Administrative Services Act of 1949 or an equivalent qualifications-based requirement prescribed for or by the sponsor of the airport; and”. (h) Assurance Relating to Disadvantaged Business Enterprises.— Section 511(a) is further amended by adding at the end thereof the following new paragraph: “(17) the airport owner or operator will take such action as may be necessary to ensure that, to the maximum extent practicable, at least 10 percent of all businesses at the airport which sell food, beverages, printed materials, or other consumer products to the public are small business concerns (as defined by the Secretary by regulation) owned and controlled by socially and economically disadvantaged individuals (as defined under section 505(d)(2)(B)).”. (i) Use of State Taxes on Aviation Fuel.— Section 511 is further amended by adding at the end thereof the following new subsection: “(d) Use of State Taxes on Aviation Fuel.— Nothing in subsection (a)(12) of this section shall preclude the use of State taxes on aviation fuel to support a State aviation program or preclude use of airport revenue on or off the airport for noise mitigation purposes.”. (j) Use of Land Disposal Funds — Section 511 is further amended by adding at the end thereof the following new subsection: “(e) Use of Land Disposal Funds.— “(1) Airport noise compatibility lands.— Amounts deposited in the Trust Fund in accordance with subsection (a)(13) of this section shall be available to the Secretary for making grants for airport development and airport planning under section 505(a). Such amounts shall be in addition to amounts made available to the Secretary under section 505 and not subject to the apportionment provisions of sections 507(a) and 507(b)(5). “(2) Other airport lands.— Amounts deposited in the Trust Fund in accordance with subsection (a)(14) of this section— “(A) shall be available to the Secretary for making grants at the discretion of the Secretary for the purposes described in section 507(c)(2) at primary airports and reliever airports; and “(B) shall be available to the Secretary for use in accordance with section 507(a)(3) at other airports in the State in which the land disposition occurred under subsection (a)(14). Such amounts shall be in addition to amounts made available to the Secretary under section 505 and not subject to the apportionment provisions of sections 507(a) and 507(b)(5).”. 101 STAT. 1502 (k) Procedures for Modifying Assurances.— Section 511 is further amended by adding at the end thereof the following new subsection: “(f) Procedures for Modifying Assurances.— If the Secretary proposes to modify any assurance required of a person receiving a grant under this Act and in effect on or after the date of the enactment of this subsection or proposes to require compliance with any additional assurance from such person, the Secretary shall first— “(1) publish notice of such proposal in the Federal Register, and “(2) provide an opportunity for comment on such proposal.”.