AGREEMENTS FOR OPERATION OF AIRPORT FACILITIES.

SEC. 105. AGREEMENTS FOR OPERATION OF AIRPORT FACILITIES. Section 47124 is amended—(1) by striking subsection (a) and inserting the following:“(a) Government Relief From Liability.—The Secretary of Transportation shall ensure that an agreement under this subchapter with a qualified entity (as determined by the Secretary), State, or a political subdivision of a State to allow the entity, State, or subdivision to operate an airport facility relieves the United States Government from any liability arising out of, or related to, acts or omissions of employees of the entity, State, or subdivision in operating the airport facility.”;(2) by striking subsection (b)(2) and inserting the following:“(2) The Secretary may make a contract with a qualified entity (as determined by the Secretary) or, on a sole source basis, with a State or a political subdivision of a State to allow the entity, State, or subdivision to operate an airport traffic control tower classified as a level I (Visual Flight Rules) tower if the Secretary decides that the entity, State, or subdivision has the capability to comply with the requirements of this paragraph. The contract shall require that the entity, State, or subdivision comply with applicable safety regulations in operating the facility and with applicable competition requirements in making a subcontract to perform work to carry out the contract.”; (3) in subsection (b)(3)—(A) in the paragraph heading by striking “pilot”;(B) by striking “pilot” each place it appears; and(C) in subparagraph (E) by striking “$6,000,000 per fiscal year” and inserting “$6,500,000 for fiscal 2004, $7,000,000 for fiscal year 2005, $7,500,000 for fiscal year 2006, and $8,000,000 for fiscal year 2007”; and (4) in subsection (b)(4)(C) by striking “$1,100,000.” and inserting “$1,500,000.”.