ADDITIONAL ENFORCEMENT AGAINST ILLEGAL DIVERSION OF AIRPORT REVENUE.

SEC. 112. ADDITIONAL ENFORCEMENT AGAINST ILLEGAL DIVERSION OF AIRPORT REVENUE. (a) New Policies and Procedures.— Section 47107 is further amended by adding at the end the following: “(1) Policies and Procedures to Ensure Enforcement Against Illegal Diversion of Airport Revenue.— “(1) In general.— Not later than 90 days after the date of he enactment of this subsection, 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; 108 STAT. 1575 “(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.”. (b) Withholding of Approval of Applications for Grants or Passenger Facility Charges; Judicial Enforcement.— Section 47111 is amended by adding at the end the following: “(e) Action on Grant Assurances Concerning Airport Revenues.— If, after notice and opportunity for a hearing, the Secretary finds a violation of section 47107(b) of this title, as further defined by the Secretary under section 47107(1) of this title, or a violation of an assurance made under section 47107(b) of this title, and the Secretary has provided an opportunity for the airport sponsor to take corrective action to cure such violation, and such corrective action has not been taken within the period of time set by the Secretary, the Secretary shall withhold approval of any new grant application for funds under this chapter, or any proposed modification to an existing grant that would increase the amount of funds made available under this chapter to the airport sponsor, and withhold approval of any new application to impose a fee under section 40117 of this title. Such applications may thereafter be approved only upon a finding by the Secretary that such corrective action as the Secretary requires has been taken to address the violation and that the violation no longer exists. “(f) Judicial Enforcement.— For any violation of this chapter or any grant assurance made under this chapter, the Secretary may apply to the district court of the United States for any district in which the violation occurred for enforcement. Such court shall have jurisdiction to enforce obedience thereto by a writ of injunction or other process, mandatory or otherwise, restraining any person from further violation.”. (c) Civil Penalties.— (1) General penalty.— Section 46301(a) is amended— (A) in paragraph (1) by striking “or 46303” and inserting “46303, 47107(b) (including any assurance made under such section)”; and (B) by adding at the end the following: 108 STAT. 1576 “(5) In the case of a violation of section 47107(b) of this title, the maximum civil penalty for a continuing violation shall not exceed $50,000.”. (2) Administrative penalty.— Section 46301(d)(2) is amended by striking “or 46303” and inserting “46303, or 47107(b) (as further defined by the Secretary under section 47107(1) and including any assurance made under section 47107(b))”. (3) Procedures.— Section 46301(d)(7) is amended by adding at the end the following: “(D) In the case of a violation of section 47107(b) of this title or any assurance made under such section— “(i) a civil penalty shall not be assessed against an individual; “(ii) a civil penalty may be compromised as provided under subsection (f); and “(iii) judicial review of any order assessing a civil penalty may be obtained only pursuant to section 46110 of this title.”. (d) Consideration of Diversion of Revenues in Awarding Discretionary Grants.— Section 47115 is amended by adding at the end the following new subsection: “(f) Consideration of Diversion of Revenues in Awarding Discretionary Grants.— “(1) General rule.— Subject to paragraph (2), in deciding whether or not to distribute funds to an airport from the discretionary funds established by subsection (a) of this section and section 47116 of this title, the Secretary shall consider as a factor militating against the distribution of such funds to the airport the fact that the airport is using revenues generated by the airport or by local taxes on aviation fuel for purposes other than capital or operating costs of the airport or the local airports 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. “(2) Required finding.— Paragraph (1) shall apply only when the Secretary finds that the amount of revenues used by the airport for purposes other than capital or operating costs in the airport’s fiscal year preceding the date of the application for discretionary funds exceeds the amount of such revenues in the airport’s first fiscal year ending after the date of the enactment of this subsection, adjusted by the Secretary for changes in the Consumer Price Index of All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.”. (e) Unreasonable Burden on Interstate Commerce.— Section 40116(d)(2)(A) is amended by adding at the end the following: “(iv) Levy or collect a tax, fee, or charge, first taking effect after the date of the enactment of this clause, exclusively upon any business located at a commercial service airport or operating as a permittee of such an airport other than a tax, fee, or charge wholly utilized for airport or aeronautical purposes.”.