1564 
private industry and other transportation library and 
information centers, with the goal of developing a 
comprehensive 
transportation 
information 
and 
knowledge network that supports the activities de-
scribed in section 6302(b)(3)(B)(vi); and 
‘‘(9) engage in such other activities as the Di-
rector determines to be necessary and as the re-
sources of the Library permit. 
‘‘(b) ACCESS.—The Director shall publicize, facili-
tate, and promote access to the information products and 
services described in subsection (a), to improve the ability 
of the transportation community to share information and 
the ability of the Director to make statistics and other 
information readily accessible as required under section 
6302(b)(3)(B)(x). 
‘‘(c) AGREEMENTS.— 
‘‘(1) IN GENERAL.—To carry out this section, 
the Director may enter into agreements with, award 
grants to, and receive amounts from, any— 
‘‘(A) State or local government; 
‘‘(B) organization; 
‘‘(C) business; or 
‘‘(D) individual. 
‘‘(2) 
CONTRACTS, 
GRANTS, 
AND
AGREE-
MENTS.—The Library may initiate and support spe-
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cific information and data management, access, and 
exchange activities in connection with matters relat-
ing to the Department’s strategic goals, knowledge 
networking, and national and international coopera-
tion, by entering into contracts or other agreements 
or awarding grants for the conduct of such activi-
ties. 
‘‘(3) AMOUNTS.—Any amounts received by the 
Library as payment for library products and services 
or other activities shall be made available to the Di-
rector to carry out this section, deposited in the Re-
search and Innovative Technology Administration’s 
general fund account, and remain available until ex-
pended. 
‘‘§ 6305. Advisory council on transportation statistics 
‘‘(a) IN GENERAL.—The Director shall establish and 
consult with an advisory council on transportation statis-
tics. 
‘‘(b) FUNCTION.—The advisory council established 
under this section shall advise the Director on— 
‘‘(1) the quality, reliability, consistency, objec-
tivity, and relevance of transportation statistics and 
analyses collected, supported, or disseminated by the 
Bureau and the Department; and 
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‘‘(2) methods to encourage cooperation and 
interoperability of transportation data collected by 
the Bureau, the operating administrations of the De-
partment, States, local governments, metropolitan 
planning organizations, and private sector entities. 
‘‘(c) MEMBERSHIP.— 
‘‘(1) IN GENERAL.—The advisory council shall 
be composed of not fewer than 9 and not more than 
11 members appointed by the Director. 
‘‘(2) SELECTION.—In selecting members for the 
advisory council, the Director shall appoint individ-
uals who— 
‘‘(A) are not officers or employees of the 
United States; 
‘‘(B) possess expertise in— 
‘‘(i) transportation data collection, 
analysis, or application; 
‘‘(ii) economics; or 
‘‘(iii) transportation safety; and 
‘‘(C) represent a cross section of transpor-
tation stakeholders, to the greatest extent pos-
sible. 
‘‘(d) TERMS OF APPOINTMENT.— 
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‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), members of the advisory council shall be 
appointed to staggered terms not to exceed 3 years. 
‘‘(2) ADDITIONAL TERMS.—A member may be 
renominated for 1 additional 3-year term. 
‘‘(3) CURRENT MEMBERS.—A member serving 
on an advisory council on transportation statistics 
on the day before the date of enactment of the 
Transportation Research and Innovative Technology 
Act of 2012 shall serve until the end of the ap-
pointed term of the member. 
‘‘(e) APPLICABILITY OF FEDERAL ADVISORY COM-
MITTEE ACT.—The Federal Advisory Committee Act (5 
U.S.C. App.) shall apply to the advisory council estab-
lished under this section, except that section 14 of that 
Act shall not apply. 
‘‘§ 6306. Transportation statistical collection, anal-
ysis, and dissemination 
‘‘To ensure that all transportation statistical collec-
tion, analysis, and dissemination is carried out in a coordi-
nated manner, the Director may— 
‘‘(1) use the services, equipment, records, per-
sonnel, information, and facilities of other Federal 
agencies, or State, local, and private agencies and 
instrumentalities, subject to the conditions that the 
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applicable agency or instrumentality consents to that 
use and with or without reimbursement for such use; 
‘‘(2) enter into agreements with the agencies 
and instrumentalities described in paragraph (1) for 
purposes of data collection and analysis; 
‘‘(3) confer and cooperate with foreign govern-
ments, international organizations, and State, mu-
nicipal, and other local agencies; 
‘‘(4) request such information, data, and re-
ports from any Federal agency as the Director de-
termines necessary to carry out this chapter; 
‘‘(5) encourage replication, coordination, and 
sharing of information among transportation agen-
cies regarding information systems, information pol-
icy, and data; and 
‘‘(6) confer and cooperate with Federal statis-
tical agencies as the Director determines necessary 
to carry out this chapter, including by entering into 
cooperative data sharing agreements in conformity 
with all laws and regulations applicable to the disclo-
sure and use of data. 
‘‘§ 6307. Furnishing of information, data, or reports 
by Federal agencies 
‘‘(a) IN GENERAL.—Except as provided in subsection 
(b), a Federal agency requested to furnish information, 
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data, or reports by the Director under section 
6302(b)(3)(B) shall provide the information to the Direc-
tor. 
‘‘(b) PROHIBITION ON CERTAIN DISCLOSURES.— 
‘‘(1) IN
GENERAL.—An officer, employee, or 
contractor of the Bureau may not— 
‘‘(A) make any disclosure in which the 
data provided by an individual or organization 
under section 6302(b)(3)(B) can be identified; 
‘‘(B) use the information provided under 
section 6302(b)(3)(B) for a nonstatistical pur-
pose; or 
‘‘(C) permit anyone other than an indi-
vidual authorized by the Director to examine 
any individual report provided under section 
6302(b)(3)(B). 
‘‘(2) COPIES OF REPORTS.— 
‘‘(A) IN
GENERAL.—No department, bu-
reau, agency, officer, or employee of the United 
States (except the Director in carrying out this 
chapter) may require, for any reason, a copy of 
any report that has been filed under section 
6302(b)(3)(B) with the Bureau or retained by 
an individual respondent. 
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‘‘(B) LIMITATION
ON
JUDICIAL
PRO-
CEEDINGS.—A copy of a report described in 
subparagraph (A) that has been retained by an 
individual respondent or filed with the Bureau 
or any of the employees, contractors, or agents 
of the Bureau— 
‘‘(i) shall be immune from legal proc-
ess; and 
‘‘(ii) shall not, without the consent of 
the individual concerned, be admitted as 
evidence or used for any purpose in any 
action, suit, or other judicial or adminis-
trative proceedings. 
‘‘(C) 
APPLICABILITY.—This 
paragraph 
shall apply only to reports that permit informa-
tion concerning an individual or organization to 
be reasonably determined by direct or indirect 
means. 
‘‘(3) INFORMING
RESPONDENT
OF
USE
OF 
DATA.—If the Bureau is authorized by statute to 
collect data or information for a nonstatistical pur-
pose, the Director shall clearly distinguish the collec-
tion of the data or information, by rule and on the 
collection instrument, in a manner that informs the 
respondent who is requested or required to supply 
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the data or information of the nonstatistical pur-
pose. 
‘‘(c) TRANSPORTATION
AND TRANSPORTATION-RE-
LATED DATA ACCESS.—The Director shall be provided ac-
cess to any transportation and transportation-related in-
formation in the possession of any Federal agency, ex-
cept— 
‘‘(1) information that is expressly prohibited by 
law from being disclosed to another Federal agency; 
or 
‘‘(2) information that the agency possessing the 
information determines could not be disclosed with-
out significantly impairing the discharge of authori-
ties and responsibilities which have been delegated 
to, or vested by law, in such agency. 
‘‘§ 6308. Proceeds of data product sales 
‘‘Notwithstanding section 3302 of title 31, amounts 
received by the Bureau from the sale of data products for 
necessary expenses incurred may be credited to the High-
way Trust Fund (other than the Mass Transit Account) 
for the purpose of reimbursing the Bureau for those ex-
penses. 
‘‘§ 6309. Information collection 
‘‘As the head of an independent Federal statistical 
agency, the Director may consult directly with the Office 
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of Management and Budget concerning any survey, ques-
tionnaire, or interview that the Director considers nec-
essary to carry out the statistical responsibilities of this 
chapter. 
‘‘§ 6310. National transportation atlas database 
‘‘(a) IN GENERAL.—The Director shall develop and 
maintain a national transportation atlas database that is 
comprised of geospatial databases that depict— 
‘‘(1) transportation networks; 
‘‘(2) flows of people, goods, vehicles, and craft 
over the transportation networks; and 
‘‘(3) social, economic, and environmental condi-
tions that affect or are affected by the transpor-
tation networks. 
‘‘(b) INTERMODAL NETWORK ANALYSIS.—The data-
bases referred to in subsection (a) shall be capable of sup-
porting intermodal network analysis. 
‘‘§ 6311. Limitations on statutory construction 
‘‘Nothing in this chapter— 
‘‘(1) authorizes the Bureau to require any other 
Federal agency to collect data; or 
‘‘(2) alters or diminishes the authority of any 
other officer of the Department to collect and dis-
seminate data independently. 
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‘‘§ 6312. Research and development grants 
‘‘The Secretary may make grants to, or enter into 
cooperative agreements or contracts with, public and non-
profit private entities (including State transportation de-
partments, metropolitan planning organizations, and insti-
tutions of higher education) for— 
‘‘(1) investigation of the subjects described in 
section 6302(b)(3)(B)(vi); 
‘‘(2) research and development of new methods 
of data collection, standardization, management, in-
tegration, dissemination, interpretation, and anal-
ysis; 
‘‘(3) demonstration programs by States, local 
governments, and metropolitan planning organiza-
tions to coordinate data collection, reporting, man-
agement, storage, and archiving to simplify data 
comparisons across jurisdictions; 
‘‘(4) development of electronic clearinghouses of 
transportation data and related information, as part 
of the Library; and 
‘‘(5) development and improvement of methods 
for sharing geographic data, in support of the data-
base under section 6310 and the National Spatial 
Data Infrastructure developed under Executive 
Order 12906 (59 Fed. Reg. 17671) (or a successor 
Executive Order). 
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‘‘§ 6313. Transportation statistics annual report 
‘‘The Director shall submit to the President and Con-
gress a transportation statistics annual report, which shall 
include— 
‘‘(1) information on the progress of the Direc-
tor in carrying out the duties described in section 
6302(b)(3)(B); 
‘‘(2) documentation of the methods used to ob-
tain and ensure the quality of the statistics pre-
sented in the report; and 
‘‘(3) any recommendations of the Director for 
improving transportation statistical information. 
‘‘§ 6314. Mandatory response authority for freight 
data collection 
‘‘(a) FREIGHT DATA COLLECTION.— 
‘‘(1) IN GENERAL.—An owner, official, agent, 
person in charge, or assistant to the person in 
charge of a freight corporation, company, business, 
institution, establishment, or organization described 
in paragraph (2) shall be fined in accordance with 
subsection (b) if that individual neglects or refuses, 
when requested by the Director or other authorized 
officer, employee, or contractor of the Bureau to 
submit data under section 6302(b)(3)(B)— 
‘‘(A) to answer completely and correctly to 
the best knowledge of that individual all ques-
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tions relating to the corporation, company, busi-
ness, institution, establishment, or other organi-
zation; or 
‘‘(B) to make available records or statistics 
in the official custody of the individual. 
‘‘(2) DESCRIPTION
OF
ENTITIES.—A freight 
corporation, company, business, institution, estab-
lishment, or organization referred to in paragraph 
(1) is a corporation, company, business, institution, 
establishment, or organization that— 
‘‘(A) receives Federal funds relating to the 
freight program; and 
‘‘(B) has consented to be subject to a fine 
under this subsection on— 
‘‘(i) refusal to supply any data re-
quested; or 
‘‘(ii) failure to respond to a written 
request. 
‘‘(b) FINES.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
an individual described in subsection (a) shall be 
fined not more than $500. 
‘‘(2) WILLFUL ACTIONS.—If an individual will-
fully gives a false answer to a question described in 
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subsection (a)(1), the individual shall be fined not 
more than $10,000.’’. 
(b) RULES OF CONSTRUCTION.—If the provisions of 
section 111 of title 49, United States Code, are trans-
ferred to chapter 63 of that title, the following rules of 
construction apply: 
(1) For purposes of determining whether 1 pro-
vision of law supersedes another based on enactment 
later in time, a chapter 63 provision is deemed to 
have been enacted on the date of enactment of the 
corresponding section 111 provision. 
(2) A reference to a section 111 provision, in-
cluding a reference in a regulation, order, or other 
law, is deemed to refer to the corresponding chapter 
63 provision. 
(3) A regulation, order, or other administrative 
action in effect under a section 111 provision con-
tinues in effect under the corresponding chapter 63 
provision. 
(4) An action taken or an offense committed 
under a section 111 provision is deemed to have 
been taken or committed under the corresponding 
chapter 63 provision. 
(c) CONFORMING AMENDMENTS.— 
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(1) REPEAL.—Section 111 of title 49, United 
States Code, is repealed, and the item relating to 
section 111 in the analysis for chapter 1 of that title 
is deleted. 
(2) ANALYSIS FOR SUBTITLE III.—The analysis 
for subtitle III of title 49, United States Code, is 
amended by inserting after the items for chapter 61 
the following: 
‘‘Chapter 63. Bureau of Transportation Statistics.’’. 
SEC. 52012. ADMINISTRATIVE AUTHORITY. 
Section 112 of title 49, United States Code, is 
amended by adding at the end the following: 
‘‘(f) PROMOTIONAL AUTHORITY.—Amounts author-
ized to be appropriated for the administration and oper-
ation of the Research and Innovative Technology Adminis-
tration may be used to purchase promotional items of 
nominal value for use by the Administrator of the Re-
search and Innovative Technology Administration in the 
recruitment of individuals and promotion of the programs 
of the Administration. 
‘‘(g) PROGRAM EVALUATION AND OVERSIGHT.—For 
each of fiscal years 2012 and 2013, the Administrator is 
authorized to expend not more than 1 1⁄2 percent of the 
amounts authorized to be appropriated for necessary ex-
penses for administration and operations of the Research 
and Innovative Technology Administration for the coordi-
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nation, evaluation, and oversight of the programs adminis-
tered by the Administration. 
‘‘(h) COLLABORATIVE RESEARCH
AND DEVELOP-
MENT.— 
‘‘(1) IN
GENERAL.—To encourage innovative 
solutions to multimodal transportation problems and 
stimulate the deployment of new technology, the Ad-
ministrator may carry out, on a cost-shared basis, 
collaborative research and development with— 
‘‘(A) non-Federal entities, including State 
and local governments, foreign governments, in-
stitutions of higher education, corporations, in-
stitutions, partnerships, sole proprietorships, 
and trade associations that are incorporated or 
established under the laws of any State; 
‘‘(B) Federal laboratories; and 
‘‘(C) other Federal agencies. 
‘‘(2) COOPERATION, GRANTS, CONTRACTS, AND 
AGREEMENTS.—Notwithstanding any other provision 
of law, the Administrator may directly initiate con-
tracts, grants, cooperative research and development 
agreements (as defined in section 12 of the Steven-
son-Wydler Technology Innovation Act of 1980 (15 
U.S.C. 3710a)), and other agreements to fund, and 
accept funds from, the Transportation Research 
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Board of the National Research Council of the Na-
tional Academy of Sciences, State departments of 
transportation, cities, counties, institutions of higher 
education, associations, and the agents of those enti-
ties to carry out joint transportation research and 
technology efforts. 
‘‘(3) FEDERAL SHARE.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), the Federal share of the cost of an 
activity carried out under paragraph (2) shall 
not exceed 50 percent. 
‘‘(B) EXCEPTION.—If the Secretary deter-
mines that the activity is of substantial public 
interest or benefit, the Secretary may approve 
a greater Federal share. 
‘‘(C) NON-FEDERAL SHARE.—All costs di-
rectly incurred by the non-Federal partners, in-
cluding personnel, travel, facility, and hardware 
development costs, shall be credited toward the 
non-Federal share of the cost of an activity de-
scribed in subparagraph (A). 
‘‘(4) USE OF TECHNOLOGY.—The research, de-
velopment, or use of a technology under a contract, 
grant, cooperative research and development agree-
ment, or other agreement entered into under this 
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subsection, including the terms under which the 
technology may be licensed and the resulting royal-
ties may be distributed, shall be subject to the Ste-
venson-Wydler Technology Innovation Act of 1980 
(15 U.S.C. 3701 et seq.). 
‘‘(5) 
WAIVER
OF
ADVERTISING
REQUIRE-
MENTS.—Section 6101 of title 41, United States 
Code shall not apply to a contract, grant, or other 
agreement entered into under this section.’’. 
SEC. 52013. TRANSPORTATION RESEARCH AND DEVELOP-
MENT STRATEGIC PLANNING. 
Section 508(a) of title 23, United States Code, is 
amended— 
(1) in paragraph (1), by striking ‘‘SAFETEA– 
LU’’ and inserting ‘‘Transportation Research and 
Innovative Technology Act of 2012’’; and 
(2) in paragraph (2), by striking subparagraph 
(A) and inserting the following: 
‘‘(A) describe the primary purposes of the 
transportation research and development pro-
gram, which shall include, at a minimum— 
‘‘(i) promoting safety; 
‘‘(ii) reducing congestion and improv-
ing mobility; 
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‘‘(iii) protecting and enhancing the 
environment; 
‘‘(iv) preserving the existing transpor-
tation system; 
‘‘(v) improving the durability and ex-
tending the life of transportation infra-
structure; and 
‘‘(vi) improving goods movement;’’. 
TITLE III—INTELLIGENT TRANS-
PORTATION 
SYSTEMS 
RE-
SEARCH 
SEC. 53001. USE OF FUNDS FOR ITS ACTIVITIES. 
Section 513 of title 23, United States Code, is 
amended to read as follows: 
‘‘§ 513. Use of funds for ITS activities 
‘‘(a) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means a State or local government, tribal gov-
ernment, transit agency, public toll authority, metro-
politan planning organization, other political subdivi-
sion of a State or local government, or a multistate 
or multijurisdictional group applying through a sin-
gle lead applicant. 
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‘‘(2) MULTIJURISDICTIONAL GROUP.—The term 
‘multijurisdictional group’ means a combination of 
State governments, local governments, metropolitan 
planning agencies, transit agencies, or other political 
subdivisions of a State that— 
‘‘(A) have signed a written agreement to 
implement an activity that meets the grant cri-
teria under this section; and 
‘‘(B) is comprised of at least 2 members, 
each of whom is an eligible entity. 
‘‘(b) PURPOSE.—The purpose of this section is to de-
velop, administer, communicate, and promote the use of 
products of research, technology, and technology transfer 
programs. 
‘‘(c) ITS DEPLOYMENT INCENTIVES.— 
‘‘(1) IN GENERAL.—The Secretary may— 
‘‘(A) develop and implement incentives to 
accelerate the deployment of ITS technologies 
and services within all funding programs au-
thorized by the Transportation Research and 
Innovative Technology Act of 2012; and 
‘‘(B) for each fiscal year, use amounts 
made available to the Secretary to carry out in-
telligent transportation systems outreach, in-
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cluding through the use of websites, public rela-
tions, displays, tours, and brochures. 
‘‘(2) COMPREHENSIVE
PLAN.—To carry out 
this section, the Secretary shall develop a detailed 
and comprehensive plan that addresses the manner 
in which incentives may be adopted, as appropriate, 
through the existing deployment activities carried 
out by surface transportation modal administrations. 
‘‘(d) SYSTEM OPERATIONS AND ITS DEPLOYMENT 
GRANT PROGRAM.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish a competitive grant program to accelerate the 
deployment, operation, systems management, inter-
modal integration, and interoperability of the ITS 
program and ITS-enabled operational strategies— 
‘‘(A) to measure and improve the perform-
ance of the surface transportation system; 
‘‘(B) to reduce traffic congestion and the 
economic and environmental impacts of traffic 
congestion; 
‘‘(C) to minimize fatalities and injuries; 
‘‘(D) to enhance mobility of people and 
goods; 
‘‘(E) to improve traveler information and 
services; and 
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‘‘(F) to optimize existing roadway capacity. 
‘‘(2) APPLICATION.—To be considered for a 
grant under this subsection, an eligible entity shall 
submit an application to the Secretary that in-
cludes— 
‘‘(A) a plan to deploy and provide for the 
long-term operation and maintenance of intel-
ligent transportation systems to improve safety, 
efficiency, system performance, and return on 
investment, such as— 
‘‘(i) real-time integrated traffic, tran-
sit, and multimodal transportation infor-
mation; 
‘‘(ii) advanced traffic, freight, park-
ing, and incident management systems; 
‘‘(iii) advanced technologies to im-
prove transit and commercial vehicle oper-
ations; 
‘‘(iv) 
synchronized, 
adaptive, 
and 
transit preferential traffic signals; 
‘‘(v) advanced infrastructure condition 
assessment technologies; and 
‘‘(vi) other technologies to improve 
system operations, including ITS applica-
tions necessary for multimodal systems in-
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tegration and for achieving performance 
goals; 
‘‘(B) quantifiable system performance im-
provements, including— 
‘‘(i) 
reductions 
in 
traffic-related 
crashes, congestion, and costs; 
‘‘(ii) optimization of system efficiency; 
and 
‘‘(iii) improvement of access to trans-
portation services; 
‘‘(C) quantifiable safety, mobility, and en-
vironmental benefit projections, including data 
driven estimates of the manner in which the 
project will improve the transportation system 
efficiency and reduce traffic congestion in the 
region; 
‘‘(D) a plan for partnering with the private 
sector, including telecommunications industries 
and public service utilities, public agencies (in-
cluding multimodal and multijurisdictional enti-
ties), research institutions, organizations rep-
resenting transportation and technology leaders, 
and other transportation stakeholders; 
‘‘(E) a plan to leverage and optimize exist-
ing local and regional ITS investments; and 
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‘‘(F) a plan to ensure interoperability of 
deployed technologies with other tolling, traffic 
management, and intelligent transportation sys-
tems. 
‘‘(3) SELECTION.— 
‘‘(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of the Transpor-
tation Research and Innovative Technology Act 
of 2012, the Secretary may provide grants to 
eligible entities under this section. 
‘‘(B) GEOGRAPHIC DIVERSITY.—In award-
ing a grant under this section, the Secretary 
shall ensure, to the maximum extent prac-
ticable, that grant recipients represent diverse 
geographical areas of the United States, includ-
ing urban, suburban, and rural areas. 
‘‘(C) NON-FEDERAL SHARE.—In awarding 
a grant under the section, the Secretary shall 
give priority to grant recipients that dem-
onstrate an ability to contribute a significant 
non-Federal share to the cost of carrying out 
the project for which the grant is received. 
‘‘(4) ELIGIBLE
USES.—Projects for which 
grants awarded under this section may be used in-
clude— 
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‘‘(C) the implementation of intelligent 
transportation systems and technologies that 
improve highway safety through information 
and communications systems linking vehicles, 
infrastructure, mobile devices, transportation 
users, and emergency responders; 
‘‘(D) the provision of services necessary to 
ensure the efficient operation and management 
of ITS infrastructure, including costs associated 
with communications, utilities, rent, hardware, 
software, labor, administrative costs, training, 
and technical services; 
‘‘(E) the provision of support for the es-
tablishment and maintenance of institutional 
relationships between transportation agencies, 
police, emergency medical services, private 
emergency operators, freight operators, ship-
pers, public service utilities, and telecommuni-
cations providers; 
‘‘(F) 
carrying 
out 
multimodal 
and 
crossjurisdictional planning and deployment of 
regional transportation systems operations and 
management approaches; and 
‘‘(G) performing project evaluations to de-
termine the costs, benefits, lessons learned, and 
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future deployment strategies associated with the 
deployment of intelligent transportation sys-
tems. 
‘‘(5) REPORT TO SECRETARY.—For each fiscal 
year that an eligible entity receives a grant under 
this section, not later than 1 year after receiving 
that grant, each recipient shall submit a report to 
the Secretary that describes how the project has met 
the expectations projected in the deployment plan 
submitted with the application, including— 
‘‘(A) data on how the program has helped 
reduce traffic crashes, congestion, costs, and 
other benefits of the deployed systems; 
‘‘(B) data on the effect of measuring and 
improving transportation system performance 
through the deployment of advanced tech-
nologies; 
‘‘(C) the effectiveness of providing real- 
time integrated traffic, transit, and multimodal 
transportation information to the public that al-
lows the public to make informed travel deci-
sions; and 
‘‘(D) lessons learned and recommendations 
for future deployment strategies to optimize 
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transportation efficiency and multimodal system 
performance. 
‘‘(6) REPORT TO CONGRESS.—Not later than 2 
years after date on which the first grant is awarded 
under this section and annually thereafter for each 
fiscal year for which grants are awarded under this 
section, the Secretary shall submit to Congress a re-
port that describes the effectiveness of the grant re-
cipients in meeting the projected deployment plan 
goals, including data on how the grant program 
has— 
‘‘(A) reduced traffic-related fatalities and 
injuries; 
‘‘(B) reduced traffic congestion and im-
proved travel time reliability; 
‘‘(C) reduced transportation-related emis-
sions; 
‘‘(D) optimized multimodal system per-
formance; 
‘‘(E) improved access to transportation al-
ternatives; 
‘‘(F) provided the public with access to 
real-time 
integrated 
traffic, 
transit, 
and 
multimodal transportation information to make 
informed travel decisions; 
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‘‘(G) provided cost savings to transpor-
tation agencies, businesses, and the traveling 
public; and 
‘‘(H) provided other benefits to transpor-
tation users and the general public. 
‘‘(7) ADDITIONAL
GRANTS.—If the Secretary 
determines, based on a report submitted under para-
graph (5), that a grant recipient is not complying 
with the established grant criteria, the Secretary 
may— 
‘‘(A) cease payment to the recipient of any 
remaining grant amounts; and 
‘‘(B) redistribute any remaining amounts 
to other eligible entities under this section. 
‘‘(8) 
NON-FEDERAL
SHARE.—The 
Federal 
share of a grant under this section shall not exceed 
50 percent of the cost of the project. 
‘‘(9) GRANT LIMITATION.—The Secretary may 
not award more than 10 percent of the amounts pro-
vided under this section to a single grant recipient 
in any fiscal year. 
‘‘(10) MULTIYEAR GRANTS.—Subject to avail-
ability of amounts, the Secretary may provide an eli-
gible entity with grant amounts for a period of mul-
tiple fiscal years. 
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‘‘(11) FUNDING.—Of the funds authorized to 
be appropriated to carry out the intelligent transpor-
tation system program under sections 512 through 
518, not less than 50 percent of such funds shall be 
used to carry out this subsection.’’. 
SEC. 53002. GOALS AND PURPOSES. 
(a) IN GENERAL.—Chapter 5 of title 23, United 
States Code, is amended by adding after section 513 the 
following: 
‘‘§ 514. Goals and purposes 
‘‘(a) GOALS.—The goals of the intelligent transpor-
tation system program include— 
‘‘(1) enhancement of surface transportation ef-
ficiency and facilitation of intermodalism and inter-
national trade to enable existing facilities to meet a 
significant portion of future transportation needs, 
including public access to employment, goods, and 
services and to reduce regulatory, financial, and 
other transaction costs to public agencies and sys-
tem users; 
‘‘(2) achievement of national transportation 
safety goals, including enhancement of safe oper-
ation of motor vehicles and nonmotorized vehicles 
and improved emergency response to collisions, with 
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particular emphasis on decreasing the number and 
severity of collisions; 
‘‘(3) protection and enhancement of the natural 
environment and communities affected by surface 
transportation, with particular emphasis on assisting 
State and local governments to achieve national en-
vironmental goals; 
‘‘(4) accommodation of the needs of all users of 
surface transportation systems, including operators 
of commercial motor vehicles, passenger motor vehi-
cles, motorcycles, bicycles, and pedestrians (includ-
ing individuals with disabilities); and 
‘‘(5) enhancement of national defense mobility 
and improvement of the ability of the United States 
to respond to security-related or other manmade 
emergencies and natural disasters. 
‘‘(b) PURPOSES.—The Secretary shall implement ac-
tivities under the intelligent transportation system pro-
gram, at a minimum— 
‘‘(1) to expedite, in both metropolitan and rural 
areas, deployment and integration of intelligent 
transportation systems for consumers of passenger 
and freight transportation; 
‘‘(2) to ensure that Federal, State, and local 
transportation officials have adequate knowledge of 
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intelligent transportation systems for consideration 
in the transportation planning process; 
‘‘(3) to improve regional cooperation and oper-
ations planning for effective intelligent transpor-
tation system deployment; 
‘‘(4) to promote the innovative use of private 
resources in support of intelligent transportation 
system development; 
‘‘(5) to facilitate, in cooperation with the motor 
vehicle industry, the introduction of vehicle-based 
safety enhancing systems; 
‘‘(6) to support the application of intelligent 
transportation systems that increase the safety and 
efficiency of commercial motor vehicle operations; 
‘‘(7) to develop a workforce capable of devel-
oping, operating, and maintaining intelligent trans-
portation systems; 
‘‘(8) to provide continuing support for oper-
ations and maintenance of intelligent transportation 
systems; and 
‘‘(9) to ensure a systems approach that includes 
cooperation among vehicles, infrastructure, and 
users.’’. 
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(b) CONFORMING AMENDMENT.—The analysis for 
chapter 5 of title 23, United States Code, is amended by 
adding after the item relating to section 513 the following: 
‘‘514. Goals and purposes.’’. 
SEC. 53003. GENERAL AUTHORITIES AND REQUIREMENTS. 
(a) IN GENERAL.—Chapter 5 of title 23, United 
States Code, is amended by adding after section 514 (as 
added by section 53002) the following: 
‘‘§ 515. General authorities and requirements 
‘‘(a) SCOPE.—Subject to the provisions of this chap-
ter, the Secretary shall conduct an ongoing intelligent 
transportation system program— 
‘‘(1) to research, develop, and operationally test 
intelligent transportation systems; and 
‘‘(2) to provide technical assistance in the na-
tionwide application of those systems as a compo-
nent of the surface transportation systems of the 
United States. 
‘‘(b) POLICY.—Intelligent transportation system re-
search projects and operational tests funded pursuant to 
this chapter shall encourage and not displace public-pri-
vate partnerships or private sector investment in those 
tests and projects. 
‘‘(c) COOPERATION WITH GOVERNMENTAL, PRI-
VATE, AND EDUCATIONAL ENTITIES.—The Secretary 
shall carry out the intelligent transportation system pro-
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gram in cooperation with State and local governments and 
other public entities, the private sector firms of the United 
States, the Federal laboratories, and institutions of higher 
education, including historically Black colleges and univer-
sities and other minority institutions of higher education. 
‘‘(d) CONSULTATION WITH FEDERAL OFFICIALS.— 
In carrying out the intelligent transportation system pro-
gram, the Secretary shall consult with the heads of other 
Federal agencies, as appropriate. 
‘‘(e) TECHNICAL ASSISTANCE, TRAINING, AND IN-
FORMATION.—The Secretary may provide technical assist-
ance, training, and information to State and local govern-
ments seeking to implement, operate, maintain, or evalu-
ate intelligent transportation system technologies and 
services. 
‘‘(f) TRANSPORTATION PLANNING.—The Secretary 
may provide funding to support adequate consideration of 
transportation systems management and operations, in-
cluding intelligent transportation systems, within metro-
politan and statewide transportation planning processes. 
‘‘(g) INFORMATION CLEARINGHOUSE.— 
‘‘(1) IN GENERAL.—The Secretary shall— 
‘‘(A) maintain a repository for technical 
and safety data collected as a result of federally 
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sponsored projects carried out under this chap-
ter; and 
‘‘(B) make, on request, that information 
(except for proprietary information and data) 
readily available to all users of the repository at 
an appropriate cost. 
‘‘(2) AGREEMENT.— 
‘‘(A) IN
GENERAL.—The Secretary may 
enter into an agreement with a third party for 
the maintenance of the repository for technical 
and safety data under paragraph (1)(A). 
‘‘(B) FEDERAL FINANCIAL ASSISTANCE.— 
If the Secretary enters into an agreement with 
an entity for the maintenance of the repository, 
the entity shall be eligible for Federal financial 
assistance under this section. 
‘‘(3) AVAILABILITY
OF
INFORMATION.—Infor-
mation in the repository shall not be subject to sec-
tions 552 and 555 of title 5, United States Code. 
‘‘(h) ADVISORY COMMITTEE.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish an Advisory Committee to advise the Secretary 
on carrying out this chapter. 
‘‘(2) MEMBERSHIP.—The Advisory Committee 
shall have no more than 20 members, be balanced 
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between metropolitan and rural interests, and in-
clude, at a minimum— 
‘‘(A) a representative from a State high-
way department; 
‘‘(B) a representative from a local highway 
department who is not from a metropolitan 
planning organization; 
‘‘(C) a representative from a State, local, 
or regional transit agency; 
‘‘(D) a representative from a metropolitan 
planning organization; 
‘‘(E) a private sector user of intelligent 
transportation system technologies; 
‘‘(F) an academic researcher with expertise 
in computer science or another information 
science field related to intelligent transportation 
systems, and who is not an expert on transpor-
tation issues; 
‘‘(G) an academic researcher who is a civil 
engineer; 
‘‘(H) an academic researcher who is a so-
cial scientist with expertise in transportation 
issues; 
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‘‘(I) a representative from a nonprofit 
group representing the intelligent transpor-
tation system industry; 
‘‘(J) a representative from a public interest 
group concerned with safety; 
‘‘(K) a representative from a public inter-
est group concerned with the impact of the 
transportation system on land use and residen-
tial patterns; and 
‘‘(L) members with expertise in planning, 
safety, telecommunications, utilities, and oper-
ations. 
‘‘(3) DUTIES.—The Advisory Committee shall, 
at a minimum, perform the following duties: 
‘‘(A) Provide input into the development of 
the intelligent transportation system aspects of 
the strategic plan under section 508. 
‘‘(B) Review, at least annually, areas of in-
telligent transportation systems research being 
considered for funding by the Department, to 
determine— 
‘‘(i) whether these activities are likely 
to advance either the state-of-the-practice 
or state-of-the-art in intelligent transpor-
tation systems; 
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‘‘(ii) whether the intelligent transpor-
tation system technologies are likely to be 
deployed by users, and if not, to determine 
the barriers to deployment; and 
‘‘(iii) the appropriate roles for govern-
ment and the private sector in investing in 
the research and technologies being consid-
ered. 
‘‘(4) REPORT.—Not later than February 1 of 
each year after the date of enactment of the Trans-
portation Research and Innovative Technology Act 
of 2012, the Secretary shall submit to Congress a 
report that includes— 
‘‘(A) all recommendations made by the Ad-
visory Committee during the preceding calendar 
year; 
‘‘(B) an explanation of the manner in 
which the Secretary has implemented those rec-
ommendations; and 
‘‘(C) for recommendations not imple-
mented, the reasons for rejecting the rec-
ommendations. 
‘‘(5) APPLICABILITY
OF
FEDERAL
ADVISORY 
COMMITTEE ACT.—The Advisory Committee shall be 
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subject to the Federal Advisory Committee Act (5 
U.S.C. App.). 
‘‘(i) REPORTING.— 
‘‘(1) GUIDELINES AND REQUIREMENTS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
issue guidelines and requirements for the re-
porting and evaluation of operational tests and 
deployment projects carried out under this 
chapter. 
‘‘(B) OBJECTIVITY AND INDEPENDENCE.— 
The guidelines and requirements issued under 
subparagraph (A) shall include provisions to en-
sure the objectivity and independence of the re-
porting entity so as to avoid any real or appar-
ent conflict of interest or potential influence on 
the outcome by parties to any such test or de-
ployment project or by any other formal evalua-
tion carried out under this chapter. 
‘‘(C) FUNDING.—The guidelines and re-
quirements issued under subparagraph (A) shall 
establish reporting funding levels based on the 
size and scope of each test or project that en-
sure adequate reporting of the results of the 
test or project. 
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‘‘(2) SPECIAL
RULE.—Any survey, question-
naire, or interview that the Secretary considers nec-
essary to carry out the reporting of any test, deploy-
ment project, or program assessment activity under 
this chapter shall not be subject to chapter 35 of 
title 44, United States Code.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 5 of title 23, United States Code, is amended by 
adding after the item relating to section 514 (as added 
by section 53002) the following: 
‘‘515. General authorities and requirements.’’. 
SEC. 53004. RESEARCH AND DEVELOPMENT. 
(a) IN GENERAL.—Chapter 5 of title 23, United 
States Code, is amended by adding after section 515 (as 
added by section 53003) the following: 
‘‘§ 516. Research and development 
‘‘(a) IN GENERAL.—The Secretary shall carry out a 
comprehensive program of intelligent transportation sys-
tem research and development, and operational tests of 
intelligent vehicles, intelligent infrastructure systems, and 
other similar activities that are necessary to carry out this 
chapter. 
‘‘(b) PRIORITY AREAS.—Under the program, the Sec-
retary shall give higher priority to funding projects that— 
‘‘(1) enhance mobility and productivity through 
improved traffic management, incident management, 
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transit management, freight management, road 
weather management, toll collection, traveler infor-
mation, or highway operations systems and remote 
sensing products; 
‘‘(2) use interdisciplinary approaches to develop 
traffic management strategies and tools to address 
multiple impacts of congestion concurrently; 
‘‘(3) address traffic management, incident man-
agement, transit management, toll collection traveler 
information, or highway operations systems; 
‘‘(4) incorporate research on the impact of envi-
ronmental, weather, and natural conditions on intel-
ligent transportation systems, including the effects 
of cold climates; 
‘‘(5) enhance intermodal use of intelligent 
transportation systems for diverse groups, including 
for emergency and health-related services; 
‘‘(6) enhance safety through improved crash 
avoidance and protection, crash and other notifica-
tion, commercial motor vehicle operations, and infra-
structure-based or cooperative safety systems; or 
‘‘(7) facilitate the integration of intelligent in-
frastructure, vehicle, and control technologies. 
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‘‘(c) FEDERAL SHARE.—The Federal share payable 
on account of any project or activity carried out under 
subsection (a) shall not exceed 80 percent.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 5 of title 23, United States Code, is amended by 
adding after the item relating to section 515 (as added 
by section 53004) the following: 
‘‘516. Research and development.’’. 
SEC. 53005. NATIONAL ARCHITECTURE AND STANDARDS. 
(a) IN GENERAL.—Chapter 5 of title 23, United 
States Code, is amended by adding after section 516 (as 
added by section 53004) the following: 
‘‘§ 517. National architecture and standards 
‘‘(a) IN GENERAL.— 
‘‘(1) DEVELOPMENT, IMPLEMENTATION, AND 
MAINTENANCE.—In accordance with section 12(d) of 
the National Technology Transfer and Advancement 
Act of 1995 (15 U.S.C. 272 note; 110 Stat. 783; 
115 Stat. 1241), the Secretary shall develop and 
maintain a national ITS architecture and supporting 
ITS standards and protocols to promote the use of 
systems engineering methods in the widespread de-
ployment and evaluation of intelligent transportation 
systems as a component of the surface transpor-
tation systems of the United States. 
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‘‘(2) INTEROPERABILITY AND EFFICIENCY.—To 
the maximum extent practicable, the national ITS 
architecture and supporting ITS standards and pro-
tocols shall promote interoperability among, and effi-
ciency of, intelligent transportation systems and 
technologies implemented throughout the United 
States. 
‘‘(3) USE OF STANDARDS DEVELOPMENT ORGA-
NIZATIONS.—In carrying out this section, the Sec-
retary shall support the development and mainte-
nance of standards and protocols using the services 
of such standards development organizations as the 
Secretary determines to be necessary and whose 
memberships are comprised of, and represent, the 
surface transportation and intelligent transportation 
systems industries. 
‘‘(b) STANDARDS FOR NATIONAL POLICY IMPLEMEN-
TATION.—If the Secretary finds that a standard is nec-
essary for implementation of a nationwide policy relating 
to user fee collection or other capability requiring nation-
wide uniformity, the Secretary, after consultation with 
stakeholders, may establish and require the use of that 
standard. 
‘‘(c) PROVISIONAL STANDARDS.— 
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‘‘(1) IN GENERAL.—If the Secretary finds that 
the development or balloting of an intelligent trans-
portation system standard jeopardizes the timely 
achievement of the objectives described in subsection 
(a), the Secretary may establish a provisional stand-
ard, after consultation with affected parties, using, 
to the maximum extent practicable, the work prod-
uct of appropriate standards development organiza-
tions. 
‘‘(2) PERIOD
OF
EFFECTIVENESS.—A provi-
sional standard established under paragraph (1) 
shall be published in the Federal Register and re-
main in effect until the appropriate standards devel-
opment organization adopts and publishes a stand-
ard. 
‘‘(d) CONFORMITY
WITH
NATIONAL
ARCHITEC-
TURE.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary shall ensure that intelligent 
transportation system projects carried out using 
amounts made available from the Highway Trust 
Fund, including amounts made available to deploy 
intelligent transportation systems, conform to the 
appropriate regional ITS architecture, applicable 
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standards, and protocols developed under subsection 
(a) or (c). 
‘‘(2) DISCRETION
OF
THE
SECRETARY.—The 
Secretary, at the discretion of the Secretary, may 
offer an exemption from paragraph (1) for projects 
designed to achieve specific research objectives out-
lined in the national intelligent transportation sys-
tem program plan or the surface transportation re-
search and development strategic plan developed 
under section 508.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 5 of title 23, United States Code, is amended by 
adding after the item relating to section 516 (as added 
by section 53004) the following: 
‘‘517. National architecture and standards.’’. 
SEC. 53006. VEHICLE-TO-VEHICLE AND VEHICLE-TO-INFRA-
STRUCTURE COMMUNICATIONS SYSTEMS DE-
PLOYMENT. 
(a) IN GENERAL.—Chapter 5 of title 23, United 
States Code, is amended by adding after section 517 (as 
added by section 53005) the following: 
‘‘§ 518. Vehicle-to-vehicle and vehicle-to-infrastruc-
ture communications systems deployment 
‘‘(a) IN GENERAL.—Not later than 3 years after the 
date of enactment of this section, the Secretary shall sub-
mit a report to the Committee on Commerce, Science, and 
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Transportation of the Senate, the Committee on Environ-
ment and Public Works of the Senate, the Committee on 
Transportation and Infrastructure of the House of Rep-
resentatives, and the Committee on Energy and Commerce 
of the House of Representatives that— 
‘‘(1) defines a recommended implementation 
path for dedicated short-range communications tech-
nology and applications; 
‘‘(2) includes guidance on the relationship of 
the proposed deployment of dedicated short-range 
communications to the National ITS Architecture 
and ITS Standards; and 
‘‘(3) ensures competition by not preferencing 
the use of any particular frequency for vehicle to in-
frastructure operations. 
‘‘(b) REPORT REVIEW.—The Secretary shall enter 
into agreements with the National Research Council and 
an independent third party with subject matter expertise 
for the review of the report described in subsection (a).’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 5 of title 23, United States Code, is amended by 
adding after section 517 (as added by section 53005) the 
following: 
‘‘518. Vehicle-to-vehicle and vehicle-to-infrastructure communications systems 
deployment.’’. 
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DIVISION F—MISCELLANEOUS 
TITLE I—REAUTHORIZATION OF 
CERTAIN PROGRAMS 
Subtitle A—Secure Rural Schools 
and Community Self-determina-
tion Program 
SEC. 100101. SECURE RURAL SCHOOLS AND COMMUNITY 
SELF-DETERMINATION PROGRAM. 
(a) AMENDMENTS.—The Secure Rural Schools and 
Community Self-Determination Act of 2000 (16 U.S.C. 
7101 et seq.) is amended— 
(1) in section 3(11)— 
(A) in subparagraph (A), by striking 
‘‘and’’ after the semicolon at the end; 
(B) in subparagraph (B)— 
(i) by striking ‘‘fiscal year 2009 and 
each fiscal year thereafter’’ and inserting 
‘‘each of fiscal years 2009 through 2011’’; 
and 
(ii) by striking the period at the end 
and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(C) for fiscal year 2012 and each fiscal 
year thereafter, the amount that is equal to 95 
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percent of the full funding amount for the pre-
ceding fiscal year.’’; 
(2) in sections 101, 102, 203, 207, 208, 304, 
and 402, by striking ‘‘2011’’ each place it appears 
and inserting ‘‘2012’’; 
(3) in section 102— 
(A) by striking ‘‘2008’’ each place it ap-
pears and inserting ‘‘2012’’; 
(B) in subsection (b)(2)(B), by inserting 
‘‘in 2012’’ before ‘‘, the election’’; and 
(C) in subsection (d)— 
(i) in paragraph (1)(A), by striking 
‘‘paragraph (3)(B)’’ and inserting ‘‘sub-
paragraph (D)’’; and 
(ii) in paragraph (3)— 
(I) by striking subparagraph (A) 
and inserting the following: 
‘‘(A) NOTIFICATION.—The Governor of 
each eligible State shall notify the Secretary 
concerned of an election by an eligible county 
under this subsection not later than September 
30, 2012, and each September 30 thereafter for 
each succeeding fiscal year.’’; 
(II) by redesignating subpara-
graph (B) as subparagraph (D) and 
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moving the subparagraph so as to ap-
pear at the end of paragraph (1) of 
subsection (d); and 
(III) by inserting after subpara-
graph (A) the following: 
‘‘(B) FAILURE
TO
ELECT.—If the Gov-
ernor of an eligible State fails to notify the Sec-
retary concerned of the election for an eligible 
county by the date specified in subparagraph 
(A)— 
‘‘(i) the eligible county shall be consid-
ered to have elected to expend 80 percent 
of the funds in accordance with paragraph 
(1)(A); and 
‘‘(ii) the remainder shall be available 
to the Secretary concerned to carry out 
projects in the eligible county to further 
the purpose described in section 202(b).’’; 
(4) in section 103(d)(2), by striking ‘‘fiscal year 
2011’’ and inserting ‘‘each of fiscal years 2011 and 
2012’’; 
(5) in section 202, by adding at the end the fol-
lowing: 
‘‘(c) ADMINISTRATIVE EXPENSES.—A resource advi-
sory committee may, in accordance with section 203, pro-
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pose to use not more than 10 percent of the project funds 
of an eligible county for any fiscal year for administrative 
expenses associated with operating the resource advisory 
committee under this title.’’; 
(6) in section 204(e)(3)(B)(iii), by striking 
‘‘and 2011’’ and inserting ‘‘through 2012’’; 
(7) in section 205(a)(4), by striking ‘‘2006’’ 
each place it appears and inserting ‘‘2011’’; 
(8) in section 208(b), by striking ‘‘2012’’ and 
inserting ‘‘2013’’; 
(9) in section 302(a)(2)(A), by inserting ‘‘and’’ 
after the semicolon; and 
(10) in section 304(b), by striking ‘‘2012’’ and 
inserting ‘‘2013’’. 
(b) FAILURE TO MAKE ELECTION.—For each county 
that failed to make an election for fiscal year 2011 in ac-
cordance with section 102(d)(3)(A) of the Secure Rural 
Schools and Community Self-Determination Act of 2000 
(16 U.S.C. 7112(d)(3)(A)), there shall be available to the 
Secretary of Agriculture to carry out projects to further 
the purpose described in section 202(b) of that Act (16 
U.S.C. 7122(b)), from amounts in the Treasury not other-
wise appropriated, the amount that is equal to 15 percent 
of the total share of the State payment that otherwise 
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would have been made to the county under that Act for 
fiscal year 2011. 
Subtitle B—Payment in Lieu of 
Taxes Program 
SEC. 100111. PAYMENTS IN LIEU OF TAXES. 
Section 6906 of title 31, United States Code, is 
amended by striking ‘‘2012’’ and inserting ‘‘2013’’. 
Subtitle C—Offsets 
SEC. 100112. TAX REPORTING FOR LIFE SETTLEMENT 
TRANSACTIONS. 
(a) IN GENERAL.—Subpart B of part III of sub-
chapter A of chapter 61 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 6050X. RETURNS RELATING TO CERTAIN LIFE INSUR-
ANCE CONTRACT TRANSACTIONS. 
‘‘(a) REQUIREMENT
OF REPORTING
OF CERTAIN 
PAYMENTS.— 
‘‘(1) IN GENERAL.—Every person who acquires 
a life insurance contract or any interest in a life in-
surance contract in a reportable policy sale during 
any taxable year shall make a return for such tax-
able year (at such time and in such manner as the 
Secretary shall prescribe) setting forth— 
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‘‘(A) the name, address, and TIN of such 
person, 
‘‘(B) the name, address, and TIN of each 
recipient of payment in the reportable policy 
sale, 
‘‘(C) the date of such sale, 
‘‘(D) the name of the issuer of the life in-
surance contract sold and the policy number of 
such contract, and 
‘‘(E) the amount of each payment. 
‘‘(2) STATEMENT TO BE FURNISHED TO PER-
SONS WITH RESPECT TO WHOM INFORMATION IS RE-
QUIRED.—Every person required to make a return 
under this subsection shall furnish to each person 
whose name is required to be set forth in such re-
turn a written statement showing— 
‘‘(A) the name, address, and phone num-
ber of the information contact of the person re-
quired to make such return, and 
‘‘(B) the information required to be shown 
on such return with respect to such person, ex-
cept that in the case of an issuer of a life insur-
ance contract, such statement is not required to 
include the information specified in paragraph 
(1)(E). 
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‘‘(b) REQUIREMENT OF REPORTING OF SELLER’S 
BASIS IN LIFE INSURANCE CONTRACTS.— 
‘‘(1) IN GENERAL.—Upon receipt of the state-
ment required under subsection (a)(2) or upon no-
tice of a transfer of a life insurance contract to a 
foreign person, each issuer of a life insurance con-
tract shall make a return (at such time and in such 
manner as the Secretary shall prescribe) setting 
forth— 
‘‘(A) the name, address, and TIN of the 
seller who transfers any interest in such con-
tract in such sale, 
‘‘(B) the investment in the contract (as de-
fined in section 72(e)(6)) with respect to such 
seller, and 
‘‘(C) the policy number of such contract. 
‘‘(2) STATEMENT TO BE FURNISHED TO PER-
SONS WITH RESPECT TO WHOM INFORMATION IS RE-
QUIRED.—Every person required to make a return 
under this subsection shall furnish to each person 
whose name is required to be set forth in such re-
turn a written statement showing— 
‘‘(A) the name, address, and phone num-
ber of the information contact of the person re-
quired to make such return, and 
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‘‘(B) the information required to be shown 
on such return with respect to each seller whose 
name is required to be set forth in such return. 
‘‘(c) REQUIREMENT OF REPORTING WITH RESPECT 
TO REPORTABLE DEATH BENEFITS.— 
‘‘(1) IN GENERAL.—Every person who makes a 
payment of reportable death benefits during any tax-
able year shall make a return for such taxable year 
(at such time and in such manner as the Secretary 
shall prescribe) setting forth— 
‘‘(A) the name, address, and TIN of the 
person making such payment, 
‘‘(B) the name, address, and TIN of each 
recipient of such payment, 
‘‘(C) the date of each such payment, and 
‘‘(D) the amount of each such payment. 
‘‘(2) STATEMENT TO BE FURNISHED TO PER-
SONS WITH RESPECT TO WHOM INFORMATION IS RE-
QUIRED.—Every person required to make a return 
under this subsection shall furnish to each person 
whose name is required to be set forth in such re-
turn a written statement showing— 
‘‘(A) the name, address, and phone num-
ber of the information contact of the person re-
quired to make such return, and 
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‘‘(B) the information required to be shown 
on such return with respect to each recipient of 
payment whose name is required to be set forth 
in such return. 
‘‘(d) DEFINITIONS.—For purposes of this section: 
‘‘(1) PAYMENT.—The term ‘payment’ means 
the amount of cash and the fair market value of any 
consideration transferred in a reportable policy sale. 
‘‘(2) REPORTABLE
POLICY
SALE.—The term 
‘reportable policy sale’ has the meaning given such 
term in section 101(a)(3)(B). 
‘‘(3) ISSUER.—The term ‘issuer’ means any life 
insurance company that bears the risk with respect 
to a life insurance contract on the date any return 
or statement is required to be made under this sec-
tion. 
‘‘(4) REPORTABLE
DEATH
BENEFITS.—The 
term ‘reportable death benefits’ means amounts paid 
by reason of the death of the insured under a life 
insurance contract that has been transferred in a re-
portable policy sale.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part III of subchapter A of chapter 61 
of the Internal Revenue Code of 1986 is amended by in-
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1618 
serting after the item relating to section 6050W the fol-
lowing new item: 
‘‘Sec. 6050X. Returns relating to certain life insurance contract transactions.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Subsection (d) of section 6724 of the Inter-
nal Revenue Code of 1986 is amended— 
(A) by striking ‘‘or’’ at the end of clause 
(xxiv) of paragraph (1)(B), by striking ‘‘and’’ 
at the end of clause (xxv) of such paragraph 
and inserting ‘‘or’’, and by inserting after such 
clause (xxv) the following new clause: 
‘‘(xxvi) section 6050X (relating to re-
turns relating to certain life insurance con-
tract transactions), and’’, and 
(B) by striking ‘‘or’’ at the end of subpara-
graph (GG) of paragraph (2), by striking the 
period at the end of subparagraph (HH) of 
such paragraph and inserting ‘‘, or’’, and by in-
serting after such subparagraph (HH) the fol-
lowing new subparagraph: 
‘‘(II) subsection (a)(2), (b)(2), or (c)(2) of 
section 6050X (relating to returns relating to 
certain life insurance contract transactions).’’. 
(2) Section 6047 of such Code is amended— 
(A) by redesignating subsection (g) as sub-
section (h), 
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1619 
(B) by inserting after subsection (f) the 
following new subsection: 
‘‘(g) INFORMATION RELATING TO LIFE INSURANCE 
CONTRACT TRANSACTIONS.—This section shall not apply 
to any information which is required to be reported under 
section 6050X.’’, and 
(C) by adding at the end of subsection (h), 
as so redesignated, the following new para-
graph: 
‘‘(4) For provisions requiring reporting of infor-
mation relating to certain life insurance contract 
transactions, see section 6050X.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to— 
(1) reportable policy sales after December 31, 
2012, and 
(2) reportable death benefits paid after Decem-
ber 31, 2012. 
SEC. 100113. CLARIFICATION OF TAX BASIS OF LIFE INSUR-
ANCE CONTRACTS. 
(a) CLARIFICATION WITH RESPECT
TO ADJUST-
MENTS.—Paragraph (1) of section 1016(a) of the Internal 
Revenue Code of 1986 is amended by striking subpara-
graph (A) and all that follows and inserting the following: 
‘‘(A) for— 
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1620 
‘‘(i) taxes or other carrying charges 
described in section 266; or 
‘‘(ii) expenditures described in section 
173 (relating to circulation expenditures), 
for which deductions have been taken by the 
taxpayer in determining taxable income for the 
taxable year or prior taxable years; or 
‘‘(B) for mortality, expense, or other rea-
sonable charges incurred under an annuity or 
life insurance contract;’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to transactions entered into after 
August 25, 2009. 
SEC. 100114. EXCEPTION TO TRANSFER FOR VALUABLE 
CONSIDERATION RULES. 
(a) IN GENERAL.—Subsection (a) of section 101 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(3) EXCEPTION TO VALUABLE CONSIDERATION 
RULES FOR COMMERCIAL TRANSFERS.— 
‘‘(A) IN GENERAL.—The second sentence 
of paragraph (2) shall not apply in the case of 
a transfer of a life insurance contract, or any 
interest therein, which is a reportable policy 
sale. 
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1621 
‘‘(B) REPORTABLE
POLICY
SALE.—For 
purposes of this paragraph, the term ‘reportable 
policy sale’ means the acquisition of an interest 
in a life insurance contract, directly or indi-
rectly, if the acquirer has no substantial family, 
business, or financial relationship with the in-
sured apart from the acquirer’s interest in such 
life insurance contract. For purposes of the pre-
ceding sentence, the term ‘indirectly’ applies to 
the acquisition of an interest in a partnership, 
trust, or other entity that holds an interest in 
the life insurance contract.’’. 
(b) CONFORMING AMENDMENT.—Paragraph (1) of 
section 101(a) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘paragraph (2)’’ and inserting ‘‘para-
graphs (2) and (3)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transfers after December 31, 
2012. 
SEC. 100115. PHASED RETIREMENT AUTHORITY. 
(a) CSRS.—Chapter 83 of title 5, United States 
Code, is amended— 
(1) in section 8331— 
(A) in paragraph (30) by striking ‘‘and’’ at 
the end; 
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(B) in paragraph (31) by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(32) ‘Director’ means the Director of the Of-
fice of Personnel Management.’’; 
(2) by inserting after section 8336 the fol-
lowing: 
‘‘§ 8336a. Phased retirement 
‘‘(a) For the purposes of this section— 
‘‘(1) the term ‘composite retirement annuity’ 
means the annuity computed when a phased retiree 
attains full retirement status; 
‘‘(2) the term ‘full retirement status’ means 
that a phased retiree has ceased employment and is 
entitled, upon application, to a composite retirement 
annuity; 
‘‘(3) the term ‘phased employment’ means the 
less-than-full-time employment of a phased retiree; 
‘‘(4) the term ‘phased retiree’ means a retire-
ment-eligible employee who— 
‘‘(A) makes an election under subsection 
(b); and 
‘‘(B) has not entered full retirement sta-
tus; 
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meet the requirements for retirement 
under subsection (c), (e), (m), or (n) of 
section 8336; or 
‘‘(ii) a law enforcement officer, fire-
fighter, nuclear materials courier, air traf-
fic controller, customs and border protec-
tion officer, or member of the Capitol Po-
lice or Supreme Court Police; and 
‘‘(10) the term ‘working percentage’ means the 
percentage of full-time employment equal the 
quotient obtained by dividing— 
‘‘(A) the number of hours per pay period 
to be worked by a phased retiree as scheduled 
in accordance with subsection (b)(2); by 
‘‘(B) the number of hours per pay period 
to be worked by an employee serving in a com-
parable position on a full-time basis. 
‘‘(b)(1) With the concurrence of the head of the em-
ploying agency, and under regulations promulgated by the 
Director, a retirement-eligible employee who has been em-
ployed on a full time basis for not less than the 3-year 
period ending on the date on which the retirement-eligible 
employee makes an election under this subsection may 
elect to enter phased retirement status. 
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‘‘(2)(A) Subject to subparagraph (B), at the time of 
entering phased retirement status, a phased retiree shall 
be appointed to a position for which the working percent-
age is 50 percent. 
‘‘(B) The Director may, by regulation, provide for 
working percentages different from the percentage speci-
fied under subparagraph (A), which shall be not less than 
20 percent and not more than 80 percent. 
‘‘(C) The working percentage for a phased retiree 
may not be changed during the phased retiree’s phased 
retirement period. 
‘‘(D)(i) Not less than 20 percent of the hours to be 
worked by a phased retiree shall consist of mentoring. 
‘‘(ii) The Director may, by regulation, provide for ex-
ceptions to the requirement under clause (i). 
‘‘(3) A phased retiree— 
‘‘(A) may not be employed in more than one po-
sition at any time; and 
‘‘(B) may transfer to another position in the 
same or a different agency, if the transfer does not 
result in a change in the working percentage. 
‘‘(4) A retirement-eligible employee may make only 
one election under this subsection during the retirement- 
eligible employee’s lifetime. 
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‘‘(5) A retirement-eligible employee who makes an 
election under this subsection may not make an election 
under section 8343a. 
‘‘(c)(1) Except as otherwise provided under this sub-
section, the phased retirement annuity for a phased retiree 
is the product obtained by multiplying— 
‘‘(A) the amount of an annuity computed under 
section 8339 that would have been payable to the 
phased retiree if, on the date on which the phased 
retiree enters phased retirement status, the phased 
retiree had separated from service and retired under 
section 8336(a) or (b); by 
‘‘(B) the phased retirement percentage for the 
phased retiree. 
‘‘(2) A phased retirement annuity shall be paid in ad-
dition to the basic pay for the position to which a phased 
retiree is appointed during phased employment. 
‘‘(3) A phased retirement annuity shall be adjusted 
in accordance with section 8340. 
‘‘(4)(A) A phased retirement annuity shall not be 
subject to reduction for any form of survivor annuity, shall 
not serve as the basis of the computation of any survivor 
annuity, and shall not be subject to any court order requir-
ing a survivor annuity to be provided to any individual. 
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‘‘(B) A phased retirement annuity shall be subject to 
a court order providing for division, allotment, assign-
ment, execution, levy, attachment, garnishment, or other 
legal process on the same basis as other annuities. 
‘‘(5) Any reduction of a phased retirement annuity 
based on an election under section 8334(d)(2) shall be ap-
plied to the phased retirement annuity after computation 
under paragraph (1). 
‘‘(6)(A) Any deposit, or election of an actuarial annu-
ity reduction in lieu of a deposit, for military service or 
for creditable civilian service for which retirement deduc-
tions were not made or refunded shall be made by a retire-
ment-eligible employee at or before the time the retire-
ment-eligible employee enters phased retirement status. 
No such deposit may be made, or actuarial adjustment 
in lieu thereof elected, at the time a phased retiree enters 
full retirement status. 
‘‘(B) Notwithstanding subparagraph (A), if a phased 
retiree does not make such a deposit and dies in service 
as a phased retiree, a survivor of the phased retiree shall 
have the same right to make such deposit as would have 
been available had the employee not entered phased retire-
ment status and died in service. 
‘‘(C) If a phased retiree makes an election for an ac-
tuarial annuity reduction under section 8334(d)(2) and 
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dies in service as a phased retiree, the amount of any de-
posit upon which such actuarial reduction shall have been 
based shall be deemed to have been fully paid. 
‘‘(7) A phased retirement annuity shall commence on 
the date on which a phased retiree enters phased employ-
ment. 
‘‘(8) No unused sick leave credit may be used in the 
computation of the phased retirement annuity. 
‘‘(d) All basic pay not in excess of the full-time rate 
of pay for the position to which a phased retiree is ap-
pointed shall be deemed to be basic pay for purposes of 
section 8334. 
‘‘(e) Under such procedures as the Director may pre-
scribe, a phased retiree may elect to enter full retirement 
status at any time. Upon making such an election, a 
phased retiree shall be entitled to a composite retirement 
annuity. 
‘‘(f)(1) Except as provided otherwise under this sub-
section, a composite retirement annuity is a single annuity 
computed under regulations prescribed by the Director, 
equal to the sum of— 
‘‘(A) the amount of the phased retirement an-
nuity as of the date of full retirement, before any re-
duction 
based 
on 
an 
election 
under 
section 
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8334(d)(2), and including any adjustments made 
under section 8340; and 
‘‘(B) the product obtained by multiplying— 
‘‘(i) the amount of an annuity computed 
under section 8339 that would have been pay-
able at the time of full retirement if the indi-
vidual had not elected a phased retirement and 
as if the individual was employed on a full-time 
basis in the position occupied during the phased 
retirement period and before any reduction for 
survivor annuity or reduction based on an elec-
tion under section 8334(d)(2); by 
‘‘(ii) the working percentage. 
‘‘(2) After computing a composite retirement annuity 
under paragraph (1), the Director shall adjust the amount 
of the annuity for any applicable reductions for a survivor 
annuity and any previously elected actuarial reduction 
under section 8334(d)(2). 
‘‘(3) A composite retirement annuity shall be ad-
justed in accordance with section 8340, except that sub-
section (c)(1) of that section shall not apply. 
‘‘(4) In computing a composite retirement annuity 
under paragraph (1)(B)(i), the unused sick leave to the 
credit of a phased retiree at the time of entry into full 
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retirement status shall be adjusted by dividing the number 
of hours of unused sick leave by the working percentage. 
‘‘(g)(1) Under such procedures and conditions as the 
Director may provide, and with the concurrence of the 
head of the employing agency, a phased retiree may elect 
to terminate phased retirement status and return to a full- 
time work schedule. 
‘‘(2) Upon entering a full-time work schedule based 
upon an election under paragraph (1), the phased retire-
ment annuity of a phased retiree shall terminate. 
‘‘(3) After the termination of a phased retirement an-
nuity under this subsection, the individual’s rights under 
this subchapter shall be determined based on the law in 
effect at the time of any subsequent separation from serv-
ice. For purposes of this subchapter or chapter 84, at time 
of the subsequent separation from service, the phased re-
tirement period shall be treated as if it had been a period 
of part-time employment with the work schedule described 
in subsection (b)(2). 
‘‘(h) For purposes of section 8341— 
‘‘(1) the death of a phased retiree shall be 
deemed to be the death in service of an employee; 
and 
‘‘(2) the phased retirement period shall be 
deemed to have been a period of part-time employ-
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‘‘(10) the term ‘working percentage’ means the 
percentage of full-time employment equal to the 
quotient obtained by dividing— 
‘‘(A) the number of hours per pay period 
to be worked by a phased retiree as scheduled 
in accordance with subsection (b)(2); by 
‘‘(B) the number of hours per pay period 
to be worked by an employee serving in a com-
parable position on a full-time basis. 
‘‘(b)(1) With the concurrence of the head of the em-
ploying agency, and under regulations promulgated by the 
Director, a retirement-eligible employee who has been em-
ployed on a full time basis for not less than the 3-year 
period ending on the date on which the retirement-eligible 
employee makes an election under this subsection may 
elect to enter phased retirement status. 
‘‘(2)(A) Subject to subparagraph (B), at the time of 
entering phased retirement status, a phased retiree shall 
be appointed to a position for which the working percent-
age is 50 percent. 
‘‘(B) The Director may, by regulation, provide for 
working percentages different from the percentage speci-
fied under subparagraph (A), which shall be not less than 
20 percent and not more than 80 percent. 
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‘‘(C) The working percentage for a phased retiree 
may not be changed during the phased retiree’s phased 
retirement period. 
‘‘(D)(i) Not less than 20 percent of the hours to be 
worked by a phased retiree shall consist of mentoring. 
‘‘(ii) The Director may, by regulation, provide for ex-
ceptions to the requirement under clause (i). 
‘‘(3) A phased retiree— 
‘‘(A) may not be employed in more than one po-
sition at any time; and 
‘‘(B) may transfer to another position in the 
same or a different agency, if the transfer does not 
result in a change in the working percentage. 
‘‘(4) A retirement-eligible employee may make only 
one election under this subsection during the retirement- 
eligible employee’s lifetime. 
‘‘(5) A retirement-eligible employee who makes an 
election under this subsection may not make an election 
under section 8420a. 
‘‘(c)(1) Except as otherwise provided under this sub-
section, the phased retirement annuity for a phased retiree 
is the product obtained by multiplying— 
‘‘(A) the amount of an annuity computed under 
section 8415 that would have been payable to the 
phased retiree if, on the date on which the phased 
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retiree enters phased retirement status, the phased 
retiree had separated from service and retired under 
section 8412 (a) or (b); by 
‘‘(B) the phased retirement percentage for the 
phased retiree. 
‘‘(2) A phased retirement annuity shall be paid in ad-
dition to the basic pay for the position to which a phased 
retiree is appointed during the phased employment. 
‘‘(3) A phased retirement annuity shall be adjusted 
in accordance with section 8462. 
‘‘(4)(A) A phased retirement annuity shall not be 
subject to reduction for any form of survivor annuity, shall 
not serve as the basis of the computation of any survivor 
annuity, and shall not be subject to any court order requir-
ing a survivor annuity to be provided to any individual. 
‘‘(B) A phased retirement annuity shall be subject to 
a court order providing for division, allotment, assign-
ment, execution, levy, attachment, garnishment, or other 
legal process on the same basis as other annuities. 
‘‘(5)(A) Any deposit, or election of an actuarial annu-
ity reduction in lieu of a deposit, for military service or 
for creditable civilian service for which retirement deduc-
tions were not made or refunded, shall be made by a re-
tirement-eligible employee at or before the time the retire-
ment-eligible employee enters phased retirement status. 
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No such deposit may be made, or actuarial adjustment 
in lieu thereof elected, at the time a phased retiree enters 
full retirement status. 
‘‘(B) Notwithstanding subparagraph (A), if a phased 
retiree does not make such a deposit and dies in service 
as a phased retiree, a survivor of the phased retiree shall 
have the same right to make such deposit as would have 
been available had the employee not entered phased retire-
ment status and died in service. 
‘‘(6) A phased retirement annuity shall commence on 
the date on which a phased retiree enters phased employ-
ment. 
‘‘(7) No unused sick leave credit may be used in the 
computation of the phased retirement annuity. 
‘‘(d) All basic pay not in excess of the full-time rate 
of pay for the position to which a phased retiree is ap-
pointed shall be deemed to be basic pay for purposes of 
section 8422 and 8423. 
‘‘(e) Under such procedures as the Director may pre-
scribe, a phased retiree may elect to enter full retirement 
status at any time. Upon making such an election, a 
phased retiree shall be entitled to a composite retirement 
annuity. 
‘‘(f)(1) Except as provided otherwise under this sub-
section, a composite retirement annuity is a single annuity 
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computed under regulations prescribed by the Director, 
equal to the sum of— 
‘‘(A) the amount of the phased retirement an-
nuity as of the date of full retirement, including any 
adjustments made under section 8462; and 
‘‘(B) the product obtained by multiplying— 
‘‘(i) the amount of an annuity computed 
under section 8412 that would have been pay-
able at the time of full retirement if the indi-
vidual had not elected a phased retirement and 
as if the individual was employed on a full-time 
basis in the position occupied during the phased 
retirement period and before any adjustment to 
provide for a survivor annuity; by 
‘‘(ii) the working percentage; 
‘‘(2) After computing a composite retirement annuity 
under paragraph (1), the Director shall adjust the amount 
of the annuity for any applicable reductions for a survivor 
annuity. 
‘‘(3) A composite retirement annuity shall be ad-
justed in accordance with section 8462, except that sub-
section (c)(1) of that section shall not apply. 
‘‘(4) In computing a composite retirement annuity 
under paragraph (1)(B)(i), the unused sick leave to the 
credit of a phased retiree at the time of entry into full 
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retirement status shall be adjusted by dividing the number 
of hours of unused sick leave by the working percentage. 
‘‘(g)(1) Under such procedures and conditions as the 
Director may provide, and with the concurrence of the 
head of employing agency, a phased retiree may elect to 
terminate phased retirement status and return to a full- 
time work schedule. 
‘‘(2) Upon entering a full-time work schedule based 
on an election under paragraph (1), the phased retirement 
annuity of a phased retiree shall terminate. 
‘‘(3) After termination of the phased retirement an-
nuity under this subsection, the individual’s rights under 
this chapter shall be determined based on the law in effect 
at the time of any subsequent separation from service. For 
purposes of this chapter, at the time of the subsequent 
separation from service, the phased retirement period shall 
be treated as if it had been a period of part-time employ-
ment with the work schedule described in subsection 
(b)(2). 
‘‘(h) For purposes of subchapter IV— 
‘‘(1) the death of a phased retiree shall be 
deemed to be the death in service of an employee; 
‘‘(2) 
except 
for 
purposes 
of 
section 
8442(b)(1)(A)(i), the phased retirement period shall 
be deemed to have been a period of part-time em-
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ployment with the work schedule described in sub-
section (b)(2) of this section; and 
‘‘(3) for purposes of section 8442(b)(1)(A)(i), 
the phased retiree shall be deemed to have been at 
the full-time rate of pay for the position occupied. 
‘‘(i) Employment of a phased retiree shall not be 
deemed to be part-time career employment, as defined in 
section 3401(2). 
‘‘(j) A phased retiree is not eligible to receive an an-
nuity supplement under section 8421. 
‘‘(k) For purposes of subchapter III, a phased retiree 
shall be deemed to be an employee. 
‘‘(l) For purposes of section 8445(d), retirement shall 
be deemed to occur on the date on which a phased retiree 
enters into full retirement status. 
‘‘(m) A phased retiree is not eligible to apply for an 
annuity under subchapter V. 
‘‘(n) A phased retiree is not subject to section 8468. 
‘‘(o) For purposes of chapter 87, a phased retiree 
shall be deemed to be receiving basic pay at the rate of 
a full-time employee in the position to which the phased 
retiree is appointed.’’; and 
(2) in the table of sections by inserting after 
the item relating to section 8412 the following: 
‘‘8412a. Phased retirement.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the effective date of the 
implementing regulations issued by the Director of the Of-
fice of Personnel Management. 
SEC. 100116. ROLL-YOUR-OWN CIGARETTE MACHINES. 
(a) IN GENERAL.—Subsection (d) of section 5702 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new flush sentence: 
‘‘Such term shall include any person who for commercial 
purposes makes available for consumer use (including 
such consumer’s personal consumption or use under para-
graph (1)) a machine capable of making cigarettes, cigars, 
or other tobacco products. A person making such a ma-
chine available for consumer use shall be deemed the per-
son making the removal as defined by subsection (j) with 
respect to any tobacco products manufactured by such ma-
chine.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to articles removed after the date 
of the enactment of this Act. 
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TITLE II—STOP TAX HAVEN 
ABUSE 
SEC. 100201. AUTHORIZING SPECIAL MEASURES AGAINST 
FOREIGN JURISDICTIONS, FINANCIAL INSTI-
TUTIONS, AND OTHERS THAT SIGNIFICANTLY 
IMPEDE UNITED STATES TAX ENFORCEMENT. 
Section 5318A of title 31, United States Code, is 
amended— 
(1) by striking the section heading and insert-
ing the following: 
‘‘§ 5318A. Special measures for jurisdictions, financial 
institutions, or international transactions 
that are of primary money laundering 
concern or significantly impede United 
States tax enforcement’’; 
(2) in subsection (a), by striking the subsection 
heading and inserting the following: 
‘‘(a) SPECIAL MEASURES TO COUNTER MONEY 
LAUNDERING AND EFFORTS TO SIGNIFICANTLY IMPEDE 
UNITED STATES TAX ENFORCEMENT.—’’; 
(3) in subsection (c)— 
(A) by striking the subsection heading and 
inserting the following: 
‘‘(c) CONSULTATIONS
AND INFORMATION TO BE 
CONSIDERED IN FINDING JURISDICTIONS, INSTITUTIONS, 
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TYPES OF ACCOUNTS, OR TRANSACTIONS TO BE OF PRI-
MARY MONEY LAUNDERING CONCERN OR TO BE SIGNIFI-
CANTLY
IMPEDING
UNITED
STATES
TAX
ENFORCE-
MENT.—’’; and 
(B) by inserting at the end of paragraph 
(2) thereof the following new subparagraph: 
‘‘(C) OTHER CONSIDERATIONS.—The fact 
that a jurisdiction or financial institution is co-
operating with the United States on imple-
menting the requirements specified in chapter 4 
of the Internal Revenue Code of 1986 may be 
favorably considered in evaluating whether such 
jurisdiction or financial institution is signifi-
cantly impeding United States tax enforce-
ment.’’; 
(4) in subsection (a)(1), by inserting ‘‘or is sig-
nificantly impeding United States tax enforcement’’ 
after ‘‘primary money laundering concern’’; 
(5) in subsection (a)(4)— 
(A) in subparagraph (A)— 
(i) by inserting ‘‘in matters involving 
money laundering,’’ before ‘‘shall consult’’; 
and 
(ii) by striking ‘‘and’’ at the end; 
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(B) by redesignating subparagraph (B) as 
subparagraph (C); and 
(C) by inserting after subparagraph (A) 
the following: 
‘‘(B) in matters involving United States 
tax enforcement, shall consult with the Commis-
sioner of the Internal Revenue, the Secretary of 
State, the Attorney General of the United 
States, and in the sole discretion of the Sec-
retary, such other agencies and interested par-
ties as the Secretary may find to be appro-
priate; and’’; 
(6) in each of paragraphs (1)(A), (2), (3), and 
(4) of subsection (b), by inserting ‘‘or to be signifi-
cantly impeding United States tax enforcement’’ 
after ‘‘primary money laundering concern’’ each 
place that term appears; 
(7) in subsection (b), by striking paragraph (5) 
and inserting the following: 
‘‘(5) PROHIBITIONS OR CONDITIONS ON OPEN-
ING OR MAINTAINING CERTAIN CORRESPONDENT OR 
PAYABLE-THROUGH
ACCOUNTS
OR
AUTHORIZING 
CERTAIN PAYMENT CARDS.—If the Secretary finds a 
jurisdiction outside of the United States, 1 or more 
financial institutions operating outside of the United 
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States, or 1 or more classes of transactions within 
or involving a jurisdiction outside of the United 
States to be of primary money laundering concern or 
to be significantly impeding United States tax en-
forcement, the Secretary, in consultation with the 
Secretary of State, the Attorney General of the 
United States, and the Chairman of the Board of 
Governors of the Federal Reserve System, may pro-
hibit, or impose conditions upon— 
‘‘(A) the opening or maintaining in the 
United States of a correspondent account or 
payable-through account; or 
‘‘(B) the authorization, approval, or use in 
the United States of a credit card, charge card, 
debit card, or similar credit or debit financial 
instrument by any domestic financial institu-
tion, financial agency, or credit card company 
or association, for or on behalf of a foreign 
banking institution, if such correspondent ac-
count, payable-through account, credit card, 
charge card, debit card, or similar credit or 
debit financial instrument, involves any such ju-
risdiction or institution, or if any such trans-
action may be conducted through such cor-
respondent account, payable-through account, 
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credit card, charge card, debit card, or similar 
credit or debit financial instrument.’’; and 
(8) in subsection (c)(1), by inserting ‘‘or is sig-
nificantly impeding United States tax enforcement’’ 
after ‘‘primary money laundering concern’’; 
(9) in subsection (c)(2)(A)— 
(A) in clause (ii), by striking ‘‘bank secrecy 
or special regulatory advantages’’ and inserting 
‘‘bank, tax, corporate, trust, or financial secrecy 
or regulatory advantages’’; 
(B) in clause (iii), by striking ‘‘supervisory 
and counter-money’’ and inserting ‘‘supervisory, 
international tax enforcement, and counter- 
money’’; 
(C) in clause (v), by striking ‘‘banking or 
secrecy’’ and inserting ‘‘banking, tax, or se-
crecy’’; and 
(D) in clause (vi), by inserting ‘‘, tax trea-
ty, or tax information exchange agreement’’ 
after ‘‘treaty’’; 
(10) in subsection (c)(2)(B)— 
(A) in clause (i), by inserting ‘‘or tax eva-
sion’’ after ‘‘money laundering’’; and 
(B) in clause (iii), by inserting ‘‘, tax eva-
sion,’’ after ‘‘money laundering’’; and 
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(11) in subsection (d), by inserting ‘‘involving 
money laundering, and shall notify, in writing, the 
Committee on Finance of the Senate and the Com-
mittee on Ways and Means of the House of Rep-
resentatives of any such action involving United 
States tax enforcement’’ after ‘‘such action’’. 
DIVISION G—AIR 
TRANSPORTATION 
SEC. 100301. TECHNICAL CORRECTIONS RELATING TO 
OVERFLIGHTS OF NATIONAL PARKS. 
(a) IN GENERAL.—Section 40128 of title 49, United 
States Code, is amended to read as follows: 
‘‘§ 40128. Overflights of national parks 
‘‘(a) IN GENERAL.— 
‘‘(1) GENERAL DELINEATION OF RESPONSIBIL-
ITIES.— 
‘‘(A) AUTHORITY OF DIRECTOR.—The Di-
rector has the authority to establish air tour 
management plans, issue air tour permits for 
commercial air tour operations conducted in ac-
cordance with an air tour management plan, 
enter into a voluntary agreement with a com-
mercial air tour operator, and issue interim op-
erating permits under subsection (c). 
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‘‘(B) AUTHORITY
OF
ADMINISTRATOR.— 
The Administrator has the authority to ensure 
that any action taken under this section does 
not adversely affect aviation safety or the man-
agement of the national airspace system. 
‘‘(2) GENERAL REQUIREMENTS.—A commercial 
air tour operator may not conduct commercial air 
tour operations over a national park or tribal lands, 
as defined by this section, except— 
‘‘(A) in accordance with this section; 
‘‘(B) in accordance with conditions and 
limitations prescribed for that operator; and 
‘‘(C) in accordance with any applicable air 
tour management plan or voluntary agreement 
developed under subsection (b) for the park or 
tribal lands. 
‘‘(3) APPLICATION
FOR
OPERATING
AUTHOR-
ITY.— 
‘‘(A) 
APPLICATION
REQUIRED.—Before 
commencing commercial air tour operations 
over a national park or tribal lands, a commer-
cial air tour operator shall apply to the Director 
for authority to conduct the operations over the 
park or tribal lands. 
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‘‘(B) NUMBER OF OPERATIONS AUTHOR-
IZED.—In determining the number of author-
izations to issue to provide commercial air tour 
operations over a national park, the Director 
shall take into consideration the provisions of 
the air tour management plan, the number of 
existing commercial air tour operators and cur-
rent level of service and equipment provided by 
any such operators, and the financial viability 
of each commercial air tour operation. 
‘‘(C) CONSULTATION
WITH
FAA.—Before 
granting an application under this paragraph, 
the Director, in consultation with the Adminis-
trator, shall develop an air tour management 
plan in accordance with subsection (b) and im-
plement such plan. 
‘‘(D) TIME LIMIT ON RESPONSE TO ATMP 
APPLICATIONS.—The Director shall make every 
effort to act on any application under this para-
graph and issue a decision on the application 
not later than 24 months after it is received or 
amended. 
‘‘(E) PRIORITY.—In acting on applications 
under this paragraph to provide commercial air 
tour operations over a national park, the Direc-
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tor shall give priority to an application under 
this paragraph in any case in which a new en-
trant commercial air tour operator is seeking 
operating authority with respect to that na-
tional park. 
‘‘(4) EXCEPTION.—Notwithstanding paragraph 
(2), commercial air tour operators may conduct com-
mercial air tour operations over a national park 
under part 91 of the title 14, Code of Federal Regu-
lations, if— 
‘‘(A) such activity is permitted under part 
119 of such title; 
‘‘(B) the total number of operations under 
this exception is limited to not more than five 
flights in any 30-day period over a particular 
park; and 
‘‘(C) the operator complies with the condi-
tions under which the operations will be con-
ducted as established by the Director, in con-
sultation with the Administrator. 
‘‘(5) SPECIAL
RULE
FOR
SAFETY
REQUIRE-
MENTS.—Before receiving a permit issued under this 
section, a commercial air tour operator shall have 
obtained the appropriate operating authority as re-
quired by the Administrator under part 119, 121, or 
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135 of title 14, Code of Federal Regulations, to con-
duct operations under this section. 
‘‘(6) EXEMPTION FOR NATIONAL PARKS WITH 
50 OR FEWER FLIGHTS EACH YEAR.— 
‘‘(A) IN GENERAL.—A national park that 
has 50 or fewer commercial air tour operations 
over the park each year shall be exempt from 
the requirements of this section, except as pro-
vided in subparagraph (B). 
‘‘(B) WITHDRAWAL
OF
EXEMPTION.—If 
the Director determines that an air tour man-
agement plan or voluntary agreement is nec-
essary to protect park resources and values or 
park visitor use and enjoyment, the Director 
shall withdraw the exemption of a park under 
subparagraph (A). 
‘‘(C) LIST OF PARKS.—The Director shall 
maintain a list each year of national parks that 
are covered by the exemption provided under 
this paragraph. 
‘‘(b) AIR TOUR MANAGEMENT PLANS.— 
‘‘(1) ESTABLISHMENT.— 
‘‘(A) IN GENERAL.—The Director, in con-
sultation with the Administrator, shall establish 
an air tour management plan for any national 
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1652 
park or tribal land for which such a plan is not 
in effect whenever a person applies for author-
ity to conduct a commercial air tour operation 
over the park. The air tour management plan 
shall be developed by means of a public process 
in accordance with paragraph (4). 
‘‘(B) OBJECTIVE.—The objective of any 
air tour management plan shall be to develop 
acceptable and effective measures to mitigate or 
prevent the significant adverse impacts, if any, 
of commercial air tour operations upon the nat-
ural and cultural resources, visitor experiences, 
and tribal lands. 
‘‘(C) EXCEPTION.—An application to begin 
commercial air tour operations at Crater Lake 
National Park may be denied without the estab-
lishment of an air tour management plan by the 
Director of the National Park Service if the Di-
rector determines that such operations would 
adversely affect park resources or visitor experi-
ences. 
‘‘(2) ENVIRONMENTAL
DETERMINATION.—In 
establishing an air tour management plan and 
issuing a permit for a commercial air tour operator 
under this section, the Director shall comply with 
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the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.). Any environmental thresholds, 
analyses, impact determinations, and conditions pre-
pared or used by the Director to establish an air 
tour management plan or issue a permit under this 
section shall have no broader application or be given 
deference beyond this section. 
‘‘(3) CONTENTS.—An air tour management 
plan for a national park— 
‘‘(A) may prohibit commercial air tour op-
erations over a national park in whole or in 
part; 
‘‘(B) may establish conditions for the con-
duct of commercial air tour operations over a 
national park, including commercial air tour 
routes, maximum or minimum altitudes, time- 
of-day restrictions, restrictions for particular 
events, maximum number of flights per unit of 
time, intrusions on privacy on tribal lands, and 
mitigation of noise, visual, or other impacts; 
‘‘(C) shall apply to all commercial air tour 
operations over a national park that are also 
within 1⁄2 mile outside the boundary of a na-
tional park; 
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‘‘(D) shall include incentives (such as pre-
ferred commercial air tour routes and altitudes, 
relief from caps and curfews) for the adoption 
of quiet aircraft technology by commercial air 
tour operators conducting commercial air tour 
operations over a national park when prac-
ticable; 
‘‘(E) shall provide for the initial allocation 
of opportunities to conduct commercial air tour 
operations over a national park if the plan in-
cludes a limitation on the number of commer-
cial air tour operations for any time period; 
‘‘(F) may not have been found to have ad-
verse effects on aviation safety or the manage-
ment of the national airspace system by the Ad-
ministrator; and 
‘‘(G) shall justify and document the need 
for measures taken pursuant to subparagraphs 
(A) through (F). 
‘‘(4) PROCEDURE.—In establishing an air tour 
management plan for a national park or tribal lands, 
the Director shall— 
‘‘(A) hold at least one public meeting with 
interested parties to develop the air tour man-
agement plan; 
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‘‘(B) publish a notice of availability of the 
proposed plan in the Federal Register for notice 
and comment and make copies of the proposed 
plan available to the public; 
‘‘(C) comply with the regulations set forth 
in parts 1500 through 1508 of title 40, Code of 
Federal Regulations; 
‘‘(D) solicit the participation of any Indian 
tribe whose tribal lands are, or may be, 
overflown by aircraft involved in a commercial 
air tour operation over the park or tribal lands 
to which the plan applies, as a cooperating 
agency under the regulations referred to in sub-
paragraph (C); and 
‘‘(E) consult with the Administrator with 
respect to effects on aviation safety and the 
management of the national airspace system. 
‘‘(5) JUDICIAL REVIEW.—An air tour manage-
ment plan developed under this subsection shall be 
subject to judicial review pursuant to chapter 7 of 
title 5, United States Code. 
‘‘(6) AMENDMENTS
AND
REVOCATIONS.—The 
Director may make amendments to an air tour man-
agement plan and any permits issued pursuant to an 
air tour management plan, and may revoke permits. 
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The Director shall consult with the Administrator to 
ensure that any such amendments or revocations will 
not adversely affect aviation safety or the manage-
ment of the national airspace system. Any such 
amendments and revocations shall be published in 
the Federal Register for notice and comment. A re-
quest for amendment of an air tour management 
plan or permit shall be made in such form and man-
ner as the Director may prescribe. 
‘‘(7) VOLUNTARY AGREEMENTS.— 
‘‘(A) IN GENERAL.—As an alternative to 
an air tour management plan, the Director may 
enter into a voluntary agreement with a com-
mercial air tour operator (including a new en-
trant commercial air tour operator and an oper-
ator that has an interim operating permit) that 
has applied to conduct commercial air tour op-
erations over a national park to manage com-
mercial air tour operations over such national 
park. 
‘‘(B) PARK
PROTECTION.—A voluntary 
agreement entered into under subparagraph (A) 
shall protect the national park resources, val-
ues, and visitor experience without compro-
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mising aviation safety or the management of 
the national airspace system and may— 
‘‘(i) include provisions such as those 
included in the content of an air tour man-
agement plan; 
‘‘(ii) include provisions to ensure the 
stability of, and compliance with, the vol-
untary agreement; and 
‘‘(iii) provide for fees for such oper-
ations. 
‘‘(C) PUBLIC REVIEW.—The Director shall 
provide an opportunity for public review of a 
proposed voluntary agreement under this para-
graph and shall consult with any Indian tribe 
whose tribal lands are, or may be, flown over by 
a commercial air tour operator under a vol-
untary agreement under this paragraph. After 
such opportunity for public review and consulta-
tion, the voluntary agreement may be imple-
mented without further administrative or envi-
ronmental process beyond that described in this 
subsection. 
‘‘(D) TERMINATION.— 
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‘‘(i) IN GENERAL.—A voluntary agree-
ment under this paragraph may be termi-
nated at any time at the discretion of— 
‘‘(I) the Director, if the Director 
determines that the agreement is not 
adequately protecting park resources 
or visitor experiences; or 
‘‘(II) the Administrator, if the 
Administrator determines that the 
agreement is adversely affecting avia-
tion safety or the national airspace 
system. 
‘‘(ii) EFFECT OF TERMINATION.—If a 
voluntary agreement with respect to a na-
tional park is terminated under this sub-
paragraph, the operators shall conform to 
the requirements for an interim operating 
permit under subsection (c) until an air 
tour management plan for the park is in 
effect. 
‘‘(c) INTERIM OPERATING AUTHORITY.— 
‘‘(1) IN GENERAL.—Interim operating authority 
granted by the Administrator under this subsection, 
as in effect on the day before the date of the enact-
ment of the Moving Ahead for Progress in the 21st 
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Century Act, shall, on and after such date of enact-
ment, be known as an interim operating permit and 
be administered by the Director in accordance with 
the conditions of this subsection. 
‘‘(2) REQUIREMENTS
AND
LIMITATIONS.—An 
interim operating permit— 
‘‘(A) shall maintain the same annual au-
thorizations as provided for interim operating 
authority under this subsection, as in effect on 
the day before the date of the enactment of the 
Moving Ahead for Progress in the 21st Century 
Act; and 
‘‘(B) may not provide for an increase in 
the number of commercial air tour operations 
over a national park conducted during any time 
period by the commercial air tour operator 
above the number that the air tour operator 
was granted unless such an increase is ap-
proved by the Director in consultation with the 
Administrator; 
‘‘(C) may be revoked by the Director for 
cause; 
‘‘(D) shall terminate 180 days after the 
date on which an air tour management plan is 
established for the park or tribal lands; 
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‘‘(E) shall promote protection of national 
park resources, visitor experiences, and tribal 
lands; 
‘‘(F) shall promote safe commercial air 
tour operations; 
‘‘(G) shall promote the adoption of quiet 
technology, as appropriate; and 
‘‘(H) may allow for modifications of the in-
terim operating permit without further environ-
mental review beyond that described in this 
subsection, if— 
‘‘(i) adequate information regarding 
the existing and proposed operations of the 
operator under the interim operating per-
mit is provided to the Director; 
‘‘(ii) the Director agrees with the 
modification, based on the professional ex-
pertise of the Director regarding the pro-
tection of the resources, values, and visitor 
use and enjoyment of the park; and 
‘‘(iii) the Director receives advice in 
writing from the Administrator that there 
would be no adverse impact on aviation 
safety or the national airspace system. 
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‘‘(3) MODIFICATIONS AND REVOCATIONS.—Any 
modification or revocation of an interim operating 
permit shall be published in the Federal Register to 
provide notice and opportunity for comment. 
‘‘(4) NEW ENTRANT AIR TOUR OPERATORS.— 
‘‘(A) IN GENERAL.—The Director, in con-
sultation with the Administrator, may grant an 
interim operating permit under this paragraph 
to an air tour operator for a national park or 
tribal lands for which that operator is a new en-
trant air tour operator without further environ-
mental process beyond that described in this 
paragraph, if— 
‘‘(i) adequate information on the pro-
posed operations of the operator is pro-
vided to the Director by the operator mak-
ing the request; 
‘‘(ii) the Director agrees, based on the 
Director’s professional expertise regarding 
the protection of park resources and values 
and visitor use and enjoyment; and 
‘‘(iii) the Director receives advice in 
writing from the Administrator that there 
would be no adverse impact on aviation 
safety or the national airspace system. 
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‘‘(B) SAFETY LIMITATION.—The Director 
may not grant an interim operating permit 
under subparagraph (A) if the Administrator 
determines that it would create a safety prob-
lem at the park or on the tribal lands, or the 
Director determines that it would create a noise 
problem at the park or on the tribal lands. 
‘‘(d) COMMERCIAL
AIR
TOUR
OPERATOR
RE-
PORTS.— 
‘‘(1) REPORT.—Each commercial air tour oper-
ator conducting a commercial air tour operation over 
a national park under an interim operating permit 
granted under subsection (c) or in accordance with 
an air tour management plan or voluntary agree-
ment under subsection (b) shall submit to the Direc-
tor a report regarding the number of commercial air 
tour operations over each national park that are con-
ducted by the operator and such other information 
as the Director may request in order to facilitate ad-
ministering the provisions of this section. 
‘‘(2) REPORT SUBMISSION.—The Director shall 
issue a request for reports under this subsection. 
The reports shall be submitted to the Director with 
a frequency and in a format prescribed by the Direc-
tor. 
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‘‘(e) COLLECTION OF FEES FROM AIR TOUR OPER-
ATIONS.— 
‘‘(1) IN GENERAL.—The Director shall deter-
mine and assess a fee under paragraph (2) on a 
commercial air tour operator conducting commercial 
air tour operations over a national park, including 
the Grand Canyon National Park. 
‘‘(2) AMOUNT
OF
FEE.—In determining the 
amount of the fee assessed under paragraph (1), the 
Director shall collect sufficient revenue, in the ag-
gregate, to pay for the expenses incurred by the 
Federal Government to develop and enforce air tour 
management plans for national parks. 
‘‘(3) EFFECT OF FAILURE TO PAY FEE.—The 
Director may assess a civil penalty against or revoke 
the interim operating permit or air tour permit, 
whichever is applicable, of a commercial air tour op-
erator conducting commercial air tour operations 
over any national park, including the Grand Canyon 
National Park, that has not paid the fee assessed by 
the Director under paragraph (1) by the date that 
is 180 days after the date on which the Director de-
termines the fee shall be paid. 
‘‘(4) FUNDING
FOR
AIR
TOUR
MANAGEMENT 
PLANS.—The Director shall use the amounts col-
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lected to develop and enforce air tour management 
plans for the national parks the Director determines 
would most benefit from such a plan. 
‘‘(f) CIVIL PENALTIES.— 
‘‘(1) IN
GENERAL.—Any person who violates 
any provision of this section or any regulation or 
permit issued under this section may be assessed a 
civil penalty by the Director of not more than 
$25,000 for each such violation. 
‘‘(2) KNOWING VIOLATIONS.—Any person who 
knowingly violates any provision of this section or 
any regulation or permit issued under this section 
may be assessed a civil penalty by the Director of 
not more than $50,000 for each violation. 
‘‘(3) PROCEDURES.—A penalty may not be as-
sessed under this subsection on a person unless the 
person is given notice and opportunity for a hearing 
with respect to the violation for which the penalty is 
assessed. Each violation of this section or a regula-
tion or permit issued under this section shall be a 
separate offense. Any civil penalty assessed under 
this subsection may be remitted or mitigated by the 
Director. Upon any failure by a person to pay a pen-
alty assessed under this subsection, the Director 
may request the Attorney General to institute a civil 
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action in a district court of the United States for 
any district in which the person is found, resides, or 
transacts business to collect the penalty and such 
court shall have jurisdiction to hear and decide any 
such action. The court shall hear such action on the 
record made before the Director and shall sustain 
his action if it is supported by substantial evidence 
on the record considered as a whole. 
‘‘(4) ADMINISTRATIVE
PROCEEDINGS.—Hear-
ings held during proceedings for the assessment of 
civil penalties under this subsection shall be con-
ducted in accordance with section 554 of title 5, 
United States Code. The Director may issue sub-
poenas for the attendance and testimony of wit-
nesses and the production of relevant papers, books, 
and documents, and administer oaths. Witnesses 
summoned shall be paid the same fees and mileage 
that are paid to witnesses in the courts of the 
United States. In case of contumacy or refusal to 
obey a subpoena served upon any person pursuant to 
this paragraph, the district court of the United 
States for any district in which such person is found 
or resides or transacts business, upon application by 
the United States and after notice to the person, 
shall have jurisdiction to issue an order requiring 
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the person to appear and give testimony before the 
Director or to appear and produce documents before 
the Director, or both, and any failure to obey the 
order of the court may be punished by such court as 
a contempt thereof. 
‘‘(g) ENFORCEMENT.—The provisions of this section 
and any regulations or permits issued under this section 
may be enforced by the Director or the Administrator, as 
appropriate. The Director may utilize by agreement, with 
or without reimbursement, the personnel, services, and fa-
cilities of any other Federal agency or any State agency 
for purposes of enforcing this section. The decisions of the 
Director under this subsection shall not have broader ap-
plication or be given deference beyond this section. The 
Administrator shall retain enforcement authority over 
matters involving the safety and efficiency of the national 
airspace system. 
‘‘(h) EXEMPTIONS.—This section shall not apply to— 
‘‘(1) the Grand Canyon National Park; or 
‘‘(2) tribal lands within or abutting the Grand 
Canyon National Park. 
‘‘(i) LAKE MEAD.—This section shall not apply to 
any air tour operator while flying over or near the Lake 
Mead National Recreation Area, solely as a transportation 
route, to conduct an air tour over the Grand Canyon Na-
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tional Park. For purposes of this subsection, an air tour 
operator flying over the Hoover Dam in the Lake Mead 
National Recreation Area en route to the Grand Canyon 
National Park shall be deemed to be flying solely as a 
transportation route. 
‘‘(j) SEVERABLE SERVICES CONTRACTS FOR PERI-
ODS CROSSING FISCAL YEARS.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the Director may enter into a contract for pro-
curement of severable services for a period that be-
gins during one fiscal year and ends in the next fis-
cal year if (without regard to any option to extend 
the period of the contract) the period of the contract 
does not exceed 1 year. 
‘‘(2) OBLIGATION
OF
FUNDS.—Funds made 
available for a fiscal year may be obligated for the 
total amount of a contract entered into under the 
authority of paragraph (1). 
‘‘(k) RESPONSIBILITIES AND AUTHORITIES OF AD-
MINISTRATOR.— 
‘‘(1) IN
GENERAL.—The Administrator shall 
advise the Director in writing of any adverse effects 
on aviation safety and or management of the na-
tional airspace system for any proposed action taken 
under this section. 
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‘‘(2) AMENDMENTS
TO
AUTHORIZATION
FOR 
COMMERCIAL AIR TOUR OPERATORS.—The Adminis-
trator, in consultation with the Director, may amend 
any authorization for a commercial air tour operator 
to include conditions set forth in any permit issued 
under this section or to address any adverse effect 
on aviation safety. 
‘‘(3) RULE
OF
CONSTRUCTION.—Nothing in 
this section shall be construed to limit or abrogate 
the Administrator’s authority to ensure the safety 
and efficiency of the national airspace system. 
‘‘(l) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) COMMERCIAL AIR TOUR OPERATOR.—The 
term ‘commercial air tour operator’ means any per-
son who conducts a commercial air tour operation 
over a national park. 
‘‘(2) EXISTING COMMERCIAL AIR TOUR OPER-
ATOR.—The term ‘existing commercial air tour oper-
ator’ means a commercial air tour operator that was 
actively engaged in the business of providing com-
mercial air tour operations over a national park at 
any time during the 12-month period ending on the 
date of the enactment of this section. 
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‘‘(3) NEW
ENTRANT
COMMERCIAL
AIR
TOUR 
OPERATOR.—The term ‘new entrant commercial air 
tour operator’ means a commercial air tour operator 
that— 
‘‘(A) applies for an interim operating per-
mit or air tour permit as a commercial air tour 
operator for a national park or tribal lands; and 
‘‘(B) has not engaged in the business of 
providing commercial air tour operations over 
the national park or tribal lands in the 12- 
month period preceding the application. 
‘‘(4) COMMERCIAL AIR TOUR OPERATION OVER 
A NATIONAL PARK.— 
‘‘(A) IN GENERAL.—The term ‘commercial 
air tour operation over a national park’ means 
any flight, conducted for compensation or hire 
in a powered aircraft where a purpose of the 
flight is sightseeing over a national park, within 
1⁄2 mile outside the boundary of any national 
park (except the Grand Canyon National Park), 
or over tribal lands (except those within or 
abutting the Grand Canyon National Park), 
during which the aircraft flies— 
‘‘(i) below a minimum altitude, deter-
mined by the Administrator in cooperation 
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with the Director, above ground level (ex-
cept solely for purposes of takeoff or land-
ing, or necessary for safe operation of an 
aircraft as determined under the rules and 
regulations of the Federal Aviation Admin-
istration requiring the pilot-in-command to 
take action to ensure the safe operation of 
the aircraft); or 
‘‘(ii) less than 1 mile laterally from 
any geographic feature within the park 
(unless more than 1⁄2 mile outside the 
boundary). 
‘‘(B) FACTORS TO CONSIDER.—In making 
a determination of whether a flight is a com-
mercial air tour operation over a national park 
for purposes of this section, the Administrator 
may consider— 
‘‘(i) whether there was a holding out 
to the public of willingness to conduct a 
sightseeing flight for compensation or hire; 
‘‘(ii) whether a narrative that referred 
to areas or points of interest on the sur-
face below the route of the flight was pro-
vided by the person offering the flight; 
‘‘(iii) the area of operation; 
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‘‘(iv) the frequency of flights con-
ducted by the person offering the flight; 
‘‘(v) the route of flight; 
‘‘(vi) the inclusion of sightseeing 
flights as part of any travel arrangement 
package offered by the person offering the 
flight; 
‘‘(vii) whether the flight would have 
been canceled based on poor visibility of 
the surface below the route of the flight; 
and 
‘‘(viii) any other factors that the Ad-
ministrator and the Director consider ap-
propriate. 
‘‘(5) NATIONAL
PARK.—The term ‘national 
park’ means any unit of the National Park System. 
‘‘(6) TRIBAL LANDS.— 
‘‘(A) IN
GENERAL.—The term ‘tribal 
lands’ means Indian country (as that term is 
defined in section 1151 of title 18) that is with-
in or abutting a national park. 
‘‘(B) ABUTTING.—For purposes of sub-
paragraph (A), the term ‘abutting’ means lands 
within 1⁄2 mile outside the boundary of a na-
tional park. 
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‘‘(7) ADMINISTRATOR.—The term ‘Adminis-
trator’ means the Administrator of the Federal Avia-
tion Administration. 
‘‘(8) DIRECTOR.—The term ‘Director’ means 
the Director of the National Park Service. 
‘‘(9) AIR TOUR PERMIT.—The term ‘air tour 
permit’ means a permit issued by the Director, in 
accordance with this section, to a commercial oper-
ator to conduct commercial air tour operations over 
a national park or tribal lands.’’. 
(b) AMENDMENTS TO NATIONAL PARKS AIR TOUR 
MANAGEMENT ACT OF 2000.— 
(1) ADVISORY GROUP.—Section 805 of the Na-
tional Parks Air Tour Management Act of 2000 (49 
U.S.C. 40128 note) is amended— 
(A) by striking subsection (a) and insert-
ing the following: 
‘‘(a) IN GENERAL.—The Director of the National 
Park Service may retain the advisory group established 
pursuant to this section, as in effect on the day before 
the date of the enactment of the Moving Ahead for 
Progress in the 21st Century Act, to provide continuing 
advice and counsel with respect to commercial air tour op-
erations over and near national parks.’’; 
(B) in subsection (b)— 
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(i) in paragraph (1)(A)(iv), by insert-
ing ‘‘or Native Hawaiians’’ after ‘‘Indian 
tribes’’; and 
(ii) by striking paragraph (3) and in-
serting the following: 
‘‘(3) CHAIRPERSON.—The representative of the 
National Park Service shall serve as chairperson of 
the advisory group.’’; and 
(C) in subsection (d)(2), by striking ‘‘The 
Federal Aviation Administration and the Na-
tional Park Service shall jointly’’ and inserting 
‘‘The National Park Service shall’’. 
(2) REPORTS.—Section 807 of the National 
Parks Air Tour Management Act of 2000 (49 
U.S.C. 40128 note) is repealed. 
(3) METHODOLOGIES
USED
TO
ASSESS
AIR 
TOUR NOISE.—Section 808 of the National Parks 
Air Tour Management Act of 2000 (49 U.S.C. 
40128 note) is amended by striking ‘‘a Federal 
agency’’ and inserting ‘‘the Director of the National 
Park Service’’. 
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DIVISION H—BUDGETARY 
EFFECTS 
SEC. 100401. BUDGETARY EFFECTS. 
(a) PAYGO SCORECARD.—The budgetary effects of 
this Act shall not be entered on either PAYGO scorecard 
maintained pursuant to section 4(d) of the Statutory Pay- 
As-You-Go Act of 2010. 
(b) SENATE PAYGO SCORECARD.—The budgetary 
effects of this Act shall not be recorded on any PAYGO 
scorecard maintained for purposes of section 201 of S. 
Con. Res. 21 (110th Congress). 
Æ 
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