[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4312 Introduced in House (IH)]







                                    


104th CONGRESS
  2d Session
                                H. R. 4312

To revitalize the tourism industry and to provide airport security, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 28, 1996

 Mr. McCollum introduced the following bill; which was referred to the 
Committee on Transportation and Infrastructure, and in addition to the 
      Committees on Commerce, Ways and Means, the Judiciary, and 
International Relations, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To revitalize the tourism industry and to provide airport security, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tourism Revitalization and Airport 
Security Act of 1996''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Tourism is a vital industry to the United States, 
        providing employment and growth to all parts of the country.
            (2) Tourism promotes a greater appreciation of our Nation's 
        natural treasures.
            (3) International tourism promotes increased cultural 
        understanding among people of nations.
            (4) The United States is currently at a competitive 
        disadvantage in the international tourism market.
            (5) The Federal Government can play a prominent role in 
        ensuring the future growth of tourism.

                   TITLE I--ENSURING TRAVELER SAFETY

SEC. 101. INTERIM DEPLOYMENT OF COMMERCIALLY AVAILABLE EXPLOSIVE 
              DETECTION EQUIPMENT.

    Section 44913(a) of title 49, United States Code, is amended--
            (1) by redesignating paragraph (3) as paragraph (4); and
            (2) by inserting after paragraph (2) the following new 
        paragraph (3):
            ``(3) Until such time as the Administrator determines that 
        equipment certified under paragraph (1) of this subsection is 
        commercially available and has successfully completed 
        operational testing as provided in 49 United States Code 
        44913(a)(1), the Administrator shall facilitate the deployment 
        of commercially available explosive detection devices that the 
        Administrator approves and determines will enhance aviation 
        security significantly. The Administrator shall require that 
        equipment deployed under this paragraph be replaced by 
        equipment certified under paragraph (1) when equipment 
        certified under paragraph (1) becomes commercially 
        available.''.

SEC. 102. AUTHORITY FOR CRIMINAL HISTORY RECORDS CHECKS.

    Section 44936(a)(1) of title 49, United States Code. is amended--
            (1) by striking ``(1)'' and inserting ``(1)(A)'';
            (2) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), respectively; and
            (3) by adding at the end the following:
            ``(B) The Administrator shall require by regulation that an 
        employment investigation (including a criminal history record 
        check in cases in which the employment investigation reveals a 
        gap in employment of 12 months or more that the individual does 
        not satisfactorily account for) be conducted for individuals 
        who will be responsible for screening passengers or property 
        under this chapter and their supervisors.''.

SEC. 103. AUDIT OF PERFORMANCE OF BACKGROUND CHECKS FOR CERTAIN 
              PERSONNEL.

    Section 44936(a) of title 49, United States Code, is amended by 
adding at the end the following:
            ``(3) The Administrator shall provide for the periodic 
        audit of criminal history record checks conducted under 
        paragraph (1) of this subsection.''.

SEC. 104. PERFORMANCE STANDARDS FOR AIRPORT SECURITY PERSONNEL.

    Section 44935(a) of title 49, United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph (4); and
            (2) by adding at the end the following:
            ``(6) performance standards for airport and airline 
        security personnel, including counter personnel; and
            ``(7) guidelines for encouraging the retention of security 
        personnel responsible for passengers and cargo.''

SEC. 105. PASSENGER PROFILING.

    The Federal Aviation Administration, the Secretary of 
Transportation, the intelligence community, and the law enforcement 
community should continue to assist air carriers in developing 
computer-assisted passenger profiling programs.

SEC. 106. AUTHORITY TO USE CERTAIN FUNDS FOR AIRPORT SECURITY PROGRAMS 
              AND ACTIVITIES.

    (a) Authority To Use Funds.--Notwithstanding any other provision of 
law, funds referred to in subsection (b) may be used to expand and 
enhance air transportation security programs and other activities at 
airports (including the improvement of facilities and the purchase and 
deployment of equipment) to ensure the safety and security of 
passengers and other persons involved in air travel.
    (b) Covered Funds.--The following funds may be used under 
subsection (a):
            (1) Project grants made under subchapter 1 of chapter 471 
        of title 49, United States Code.
            (2) Passenger facility fees collected under section 40117 
        of title 49, United States Code.

SEC. 107. ASSESSMENT OF CARGO.

    (a) In General.--The Administrator of the Federal Aviation 
Administration shall, in consultation with the appropriate Federal 
agencies, review--
            (1) the oversight by the Federal Aviation Administration of 
        inspections of shipments of mail and cargo by domestic and 
        foreign air carriers;
            (2) the need for additional security measures with respect 
        to such inspections; and
            (3) the adequacy of inspection and screening of cargo on 
        passenger air carriers.
    (b) Legislative Proposals.--The President shall submit relevant 
legislative proposals to Congress, as may be required.

SEC. 108. ASSIGNMENT OF FBI AGENTS TO HIGH-RISK AIRPORTS.

    Section 44904 of title 49, United States Code, is amended by adding 
at the end the following:
    ``(d) Responsibility of FBI Agents to Areas of High-Risk 
Airports.--The Director of the Federal Bureau of Investigation shall 
assure that agents of the Federal Bureau of Investigation who are 
assigned to an area where there are airports that are determined to be 
high-risk airports shall, jointly with the Federal Aviation 
Administration, carry out periodic threat and vulnerability assessments 
of security every 3 years, or more frequently, as necessary, at such 
airports.''.

SEC. 109. SUPPLEMENTAL SCREENING.

    Section 44903(c) of title 49, United States Code, is amended by 
adding at the end of the following new paragraph:
            ``(3) Use of dogs in screening.--
                    ``(A) In general.--The law enforcement presence and 
                capability required under paragraph (1) shall include a 
                requirement that the operator of each major airport use 
                dogs or other appropriate animals to supplement 
                existing equipment used for screening passengers and 
                cargo for plastic explosives and other devices or 
                materials which may be used in aircraft piracy. If the 
                Administrator determines that the requirements of the 
                preceding sentence will not significantly enhance the 
                safety and security of passengers and other persons 
                involved in air travel, the Administrator may modify 
                such requirements as appropriate. At the discretion of 
                the Administrator, the use of dogs at an airport may be 
                deemed as compliance with section 449913(a)(3) of this 
                title.
                    ``(B) Major airport defined.--In this paragraph, 
                the term `major airport' means an airport that is one 
                of the largest 50 airports in the United States, as 
                determined by the number of passenger enplanements in 
                calendar year 1995.''.

SEC. 110. SUPPLEMENTAL EXPLOSIVE DETECTION.

    Section 44913(b) of title 49, United States Code, is amended to 
read as follows:
    ``(b) Supplemental Explosive Detection.--
            ``(1) Grants.--The Secretary shall make grants for expenses 
        of training and evaluation of dogs for the explosive detection 
        K-9 team training program for the purpose of detecting 
        explosives at airports and aboard aircraft. Not later than 180 
        days after the date of the enactment of the Aviation Security 
        Improvement Act of 1996, the Secretary shall extend such 
        program to the largest 50 airports in the United States, as 
        determined by the number of passenger enplanements in calendar 
        year 1995.
            ``(2) Funding.--There is authorized to be appropriated from 
        the Trust Fund for carrying out paragraph (1) such sums as may 
        be necessary for fiscal years beginning after September 30, 
        1996. Such funds shall remain available until expended.''.

SEC. 111. ENHANCED SECURITY FOR SMALL AIRPLANES

    Not later than 60 days after the date of the enactment of this Act, 
the Administrator shall initiate a rulemaking to revise section 108.5 
and 108.7 of 14 C.F.R. with respect to airplanes having a passenger 
seating configuration of less than 61 to enhance the safety and 
security of air travel in such airplanes.

SEC. 112. CIVIL AVIATION SECURITY REVIEW COMMISSION.

    (a) Establishment.--There is established a commission to be known 
as the Civil Aviation Security Review Commission (hereinafter in this 
section referred to as the ``Commission'').
    (b) Functions.--The Commission shall conduct a comprehensive review 
of aviation security. Matters to be studied by the Commission shall 
include the following:
            (1) A review of the advisability of transferring 
        responsibilities of air carriers under Federal law for security 
        activities conducted on-site at airports to airport operators 
        or to appropriate entities independent of air carriers.
            (2) A review of whether baggage match requirements should 
        be imposed on air carriers providing interstate air 
        transportation and how baggage match can be accomplished to 
        enhance the safety and security of domestic air travel.
            (3) A review of the cost and advisability of requiring 
        hardened cargo containers as a way to enhance aviation security 
        and reduce the required sensitivity of bomb detection 
        equipment.
    (c) Membership.--The Commission shall be composed of 13 members, 
appointed from persons knowledgeable about civil aviation in the United 
States and who are specifically qualified by training and experience to 
perform the duties of the Commission, as follows:
            (1) 3 members appointed by the Secretary of Transportation, 
        in consultation with the Secretary of the Treasury.
            (2) 10 members appointed by Congress as follows:
                    (A) 1 member appointed by each of the chairman and 
                ranking minority member of the Committee on 
                Transportation and Infrastructure of the House of 
                Representatives.
                    (B) 1 member appointed by each of the chairman and 
                ranking minority member of the Committee on 
                Appropriations of the House of Representatives.
                    (C) 1 member appointed by each of the chairman and 
                ranking minority member of the Committee on Commerce, 
                Science, and Transportation of the Senate.
                    (D) 1 member appointed by each of the chairman and 
                ranking minority member of the Committee on 
                Appropriations of the Senate.
                    (E) 1 member appointed by each of the chairman and 
                ranking minority member of the Committee on Ways and 
                Means of the House of Representatives.
    (d) Restriction on Appointment of Current Aviation Employees.--A 
member appointed under subsection (c)(1) may not be an employee of an 
airline, airport, aviation union, or aviation trade association at the 
time of appointment or while serving on the Commission.
    (e) Timing of Appointments.--The appointing authorities shall make 
their appointments to the Commission not later than 30 days after the 
date of the enactment of this Act.
    (f) Chairman.--In consultation with the Secretary of 
Transportation, the Speaker of the House of Representatives and the 
majority leader of the Senate shall designate a chairman and vice 
chairman from among the members of the Commission not later than 30 
days after appointment of the last member to the Commission.
    (g) Period of Appointment and Vacancies.--Members shall be 
appointed for the life of the Commission, and any vacancy on the 
Commission shall not affect its powers but shall be filled in the same 
manner, and by the same appointing authority, as the original 
appointment.
    (h) Quorum.--A majority of the members of the Commission shall 
constitute a quorum to conduct business, but the Commission may 
establish a lesser number for conducting hearings scheduled by the 
Commission.
    (i) Powers of the Commission.--
            (1) Hearings.--The Commission may hold such hearings, sit 
        and act at such times and places, administer such oaths, take 
        such testimony, and receive such evidence as the Commission 
        considers advisable to carry out its duties.
            (2) Information from federal agencies.--The Commission may 
        secure directly from any Federal department or agency such 
        information or documents as the Commission considers necessary 
        to carry out its duties, unless the head of such department or 
        agency advises the chairman of the Commission, in writing, that 
        such information is confidential and that its release to the 
        Commission would jeopardize aviation safety, the national 
        security, or pending criminal investigations.
            (3) Detail of government employees.--Any Federal Government 
        employee may be detailed to the Commission without 
        reimbursement, and such detail shall be without interruption or 
        loss of civil service status or privilege.
            (4) Travel and per diem.--Members and staff of the 
        Commission shall be paid travel expenses, including per diem in 
        lieu of subsistence, when away from his or her usual place of 
        residence, in accordance with section 5703 of title 5, United 
        States Code.
    (j) Final Report.--Not later than 1 year after the date of the 
appointment of the last member to the Commission under subsection (c), 
the Commission shall submit to Congress and the Administrator a final 
report on the findings of the Commission with corresponding 
recommendations. Included with this report shall be the independent 
audit required under subsection (j).
    (k) Authorization of Appropriations.--There is hereby authorized to 
be appropriated $2,400,000 for activities of the Commission to remain 
available until expended.

SEC. 113. TEST OF IGRIS SYSTEMS FOR EXPLOSIVE DETECTION.

    (a) In General.--The Administrator of the Federal Aviation 
Administration shall conduct a test under section 44913(a) of title 49, 
United States Code, to assess the performance of inelastic gamma ray 
imaging and spectroscopy systems in the detection of explosive 
materials.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated for fiscal years beginning after September 30, 1996, 
$6,000,000 to carry out subsection (a).

SEC. 114. STUDY OF BOMB CONTAINMENT TECHNOLOGIES.

    (a) In General.--The Secretary of Transportation shall conduct a 
study of the effectiveness of bomb blast containment technologies in 
aircraft luggage and cargo holds.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated for fiscal years beginning after September 30, 1996, 
$20,000,000 to carry out subsection (a).

SEC. 115. SENSE OF CONGRESS CONCERNING BAG MATCH SYSTEMS.

    It is the sense of Congress that, although airport security is a 
top priority, thorough studies of the bag match system of security for 
flights in air transportation need to be conducted before 
implementation of the system on any widespread basis. Such studies 
should include an assessment of the need for the system, the 
effectiveness of the system, the projected impact of the system on air 
passenger volume, the projected impact of the system on the number of 
delays in aircraft arrivals and departures, and the projected impact of 
the system on the number of ticketed air passengers who miss flights.

                      TITLE II--TOURISM PROMOTION

SEC. 201. NATIONAL TOURISM BOARD.

    (a) Establishment.--There is established the National Tourism Board 
to--
            (1) utilize a private-public partnership for travel and 
        tourism policymaking;
            (2) develop a national travel and tourism strategy for 
        increasing travel and tourism to and within the United States;
            (3) advise the President, the Congress, and the travel and 
        tourism industry on the implementation of such national 
        strategy and on other matters affecting travel and tourism; and
            (4) provide guidance to the National Tourism Organization 
        established under section 202.
    (b) Composition.--The Board shall consist of 36 members appointed 
by the President as follows--
            (1) 27 members shall be appointed from individuals who 
        represent all the ranges of the travel and tourism industry;
            (2) 6 members shall be appointed from State, regional, and 
        Federal agencies related to travel and tourism;
            (3) 1 member shall be appointed from the Senate and 1 
        member shall be appointed from the House of Representatives; 
        and
            (4) a chairman shall be appointed by and with the advice of 
        the Senate.
In making appointments to the Board, the President shall take into 
account recommendations made by organizations representing the travel 
and tourism industry. The chairman shall be accountable to the 
President and the Congress for the operations of the Board.
    (c) Terms.--The members and chairman of the Board shall be 
appointed for terms of 3 years, except that of the members first 
appointed--
            (1) 12 members shall be appointed for a term of 1 year;
            (2) 12 members shall be appointed for a term of 2 years; 
        and
            (3) 11 members and the chairman shall be appointed for a 
        term of 3 years,
as determined by the President as of the date of the first 
appointments. A member may be reappointed to serve on the Board.
    (d) Authority.--
            (1) Non-federal status.--The Board is not a Federal agency 
        and is not subject to any Federal law, including the Federal 
        Advisory Commission Act and personnel and budget laws.
            (2) Executive director.--The chairman of the Board may 
        appoint an executive director and establish the compensation 
        and the duties of the executive director.
            (3) Meetings.--The Board shall meet at least semi-annually. 
        The meetings shall be open to the public and appropriate notice 
        shall be given for the meeting dates.
            (4) Compensation and expenses.--The chairman and members of 
        the Board shall serve without compensation but may be 
        compensated for expenses incurred in carrying out the duties of 
        the Board.
            (5) Testimony, reports, and support.--The Board may present 
        testimony to the Congress and to legislatures of the States and 
        issue reports on its findings and recommendations.
            (6) Contributions.--The Board may accept financial 
        contributions from the private sector to cover the expenses of 
        the Board.

SEC. 202. NATIONAL TOURISM ORGANIZATION.

    (a) Establishment.--There is established with a Federal charter the 
National Tourism Organization. The Organization shall be a not-for-
profit organization. The Organization is not a Federal agency and shall 
not be subject to any Federal law.
    (b) Duties.--The Organization shall--
            (1) seek to, and work for, an increase in the share of the 
        United States in the global tourism market;
            (2) implement the national travel and tourism strategy 
        developed by the National Tourism Board under section 
        201(a)(2);
            (3) operate travel and tourism promotion programs outside 
        the United States in partnership with the travel and tourism 
        industry in the United States;
            (4) conduct market research necessary for effective 
        promotion of the travel and tourism market;
            (5) establish a Travel-Tourism Data Bank, collect 
        international market data for the Bank, and disseminate such 
        data to the travel and tourism industry in the United States; 
        and
            (6) promote United States travel and tourism at 
        international trade shows.
    (c) Board of Directors.--The Organization shall be governed by a 
Board of Directors (hereinafter in this section ``Board''), which shall 
have 45 members. The Board shall be accountable to the National Tourism 
Board for the operations of the Organization. The President shall 
appoint the initial members of the Board, taking into account 
recommendations made by organizations representing the travel and 
tourism industry so that all the ranges of the travel and tourism 
industry are represented on the Board. By majority vote, members of the 
Board shall select one member to be chairman and shall adopt bylaws, 
policies, and procedures to govern the duties of the chairman, the term 
of service of members of the Board, the functioning of the Board, and 
the operations of the Organization. The Board shall appoint new members 
to fill any vacancy on the Board.
    (d) Staff.--The Board shall appoint a president of the Organization 
and such other staff as the Board determines is necessary. The Board 
shall establish the duties of the staff and set the compensation of the 
staff. The president of the Organization shall serve as a member of the 
Trade Promotion Coordinating Committee.
    (e) Funding.--The Organization may accept financial contributions. 
Within one year of the date of the enactment of this Act, the Board 
shall develop a plan for long-term financing and, if necessary, make 
recommendations to the Congress and the President for legislation.

SEC. 203. UNITED STATES GOVERNMENT COOPERATION.

    (a) Secretary of State.--The Secretary of State shall--
            (1) place a priority on implementing recommendations by the 
        National Tourism Board; and
            (2) cooperate with the National Tourism Organization in 
        carrying out its duties.
    (b) Director of the United States Information Agency.--The Director 
of the United States Information Agency shall--
            (1) place a priority on implementing recommendations by the 
        National Tourism Board; and
            (2) cooperate with the National Tourism Organization in 
        carrying out its duties.

SEC. 204. TRANSITION FROM THE UNITED STATES TRAVEL AND TOURISM 
              ADMINISTRATION.

    (a) Staff.--The President may transfer up to 25 members of the 
staff of the United States Travel and Tourism Administration 
established under section 301 of the International Travel Act of 1961 
(22 U.S.C. 2124) to the Foreign Service or the Commercial Service for 2 
years. Such staff members shall assist the Organization in its start-up 
activities.
    (b) Files and Other Resources.--The files and other nonfinancial 
resources of the United States Travel and Tourism Administration are 
transferred to the United States Foreign and Commercial Service.

SEC. 205. TRADE PROMOTION COORDINATING COMMITTEE.

    Section 2312 of the Export Enhancement Act of 1988 (15 U.S.C. 4727) 
is amended--
            (1) in subsection (c) by adding at the end thereof:
            ``(6) reflect recommendations by the National Tourism 
        Board.''; and
            (2) in paragraph (d)(1) by striking ``and'' in ``(L)'', by 
        redesignating ``(M)'' as ``(N)'', and by inserting the 
        following:
                    ``(M) the President of the National Tourism 
                Organization; and''.

SEC. 206. DEFINITIONS.

    For purposes of this title, the term ``Organization'' means the 
National Tourism Organization established under section 202.

                     TITLE III--FACILITATING TRAVEL

SEC. 301. GENERAL REVENUE PORTION OF MOTOR FUEL EXCISE TAX REVENUES TO 
              BE DEPOSITED INTO APPROPRIATE TRUST FUND.

    (a) Increased Highway Trust Fund Deposits.--
            (1) Paragraph (4) of section 9503(b) of the Internal 
        Revenue Code of 1986 (relating to certain additional taxes not 
        transferred to Highway Trust Fund) is amended to read as 
        follows:
            ``(4) Certain taxes not transferred to highway trust 
        fund.--For purposes of paragraphs (1) and (2), there shall not 
        be taken into account the taxes imposed by--
                    ``(A) section 4041(d),
                    ``(B) section 4081 to the extent attributable to 
                the rate specified in section 4081(a)(2)(B), or
                    ``(C) section 4041 or 4081 to the extent 
                attributable to fuel used in a train.''
            (2) Subparagraph (B) of section 40(e)(1) of such Code is 
        amended by striking ``during which the Highway Trust Fund 
        financing rate under section 4081(a)(2) is not in effect'' and 
        inserting ``during which the rates of tax specified in section 
        4081(a)(2)(A) are not in effect''.
            (3) The last sentence of subparagraph (A) of section 
        9503(c)(2) of such Code is amended by striking ``by taking into 
        account only the Highway Trust Fund financing rate applicable 
        to any fuel'' and inserting ``by taking into account only the 
        portion of the taxes which are deposited into the Highway Trust 
        Fund''.
            (4) Section 9503 of such Code is amended by striking 
        subsection (f).
    (b) Increased Airport and Airway Trust Fund Deposits.--
            (1) Subsection (b) of section 9502 of such Code is 
        amended--
                    (A) by striking ``(to the extent of 15 cents per 
                gallon)'' in paragraph (2), and
                    (B) by striking ``(to the extent attributable to 
                the Airport and Airway Trust Fund financing rate)'' in 
                paragraph (3) and inserting ``(other than to the extent 
                attributable to the Leaking Underground Storage Tank 
                Trust Fund financing rate)''.
            (2) Section 9502 of such Code is amended by striking 
        subsection (f).
    (c) Increased Inland Waterways Trust Fund Deposits.--Paragraph (2) 
of section 4042(b) of such Code is amended by striking subparagraph (C) 
and by striking subparagraph (A) and inserting the following new 
subparagraph:
                    ``(A) The Inland Waterways Trust Fund financing 
                rate is 24.3 cents per gallon.''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxes imposed after the date of the enactment of this Act.

SEC. 302. REPEAL OF SCHEDULED INCREASE IN TAX ON FUEL USED IN 
              COMMERCIAL AVIATION.

    (a) In General.--The first sentence of section 4092(b) of the 
Internal Revenue Code of 1986 (relating to exemptions) is amended by 
striking ``is attributable to--'' and all that follows and inserting 
``is attributable to the Leaking Underground Storage Tank Trust Fund 
financing rate imposed by such section.''
    (b) Conforming Amendments.--
            (1) Paragraph (4) of section 6427(l) of such Code is 
        amended by striking ``is attributable to--'' and all that 
        follows and inserting ``is attributable to the Leaking 
        Underground Storage Tank Trust Fund financing rate imposed by 
        such section.''
            (2) Section 13245 of the Omnibus Budget Reconciliation Act 
        of 1993 is hereby repealed.
    (c) Effective Date.--The amendments made by this section shall take 
effect on September 30, 1995.

SEC. 303. RESTORATION OF DEDUCTION FOR BUSINESS MEALS AND ENTERTAINMENT 
              AND FOR TRAVEL EXPENSES OF SPOUSES AND OTHERS 
              ACCOMPANYING THE TAXPAYER ON BUSINESS.

    (a) Restoration of Deduction for Business Meals and 
Entertainment.--
            (1) General rule.--Paragraph (1) of section 274(n) of the 
        Internal Revenue Code of 1986 (relating to only 50 percent of 
        meal and entertainment expenses allowed as deduction) is 
        amended by striking ``50 percent'' and inserting ``100 
        percent''.
            (2) Conforming amendment.--The subsection heading for 
        section 274(n) of such Code is amended by striking ``50'' and 
        inserting ``100''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 1995.
    (b) Repeal of Special Limitation on Deduction for Travel Expenses 
of Spouses, Etc.--
            (1) In general.--Subsection (m) of section 274 of such Code 
        is amended by striking paragraph (3).
            (2) Effective date.--The amendment made by this subsection 
        shall apply to amounts paid or incurred after December 31, 
        1995.

SEC. 304. DEDUCTION FOR PROMOTION OF TOURISM IN THE UNITED STATES.

    (a) In General.--Section 162 of the Internal Revenue Code of 1986 
(relating to trade or business expenses) is amended by redesignating 
subsection (o) as subsection (p) and by inserting after subsection (n) 
the following new subsection:
    ``(o) Expenses Promoting Tourism in the United States.--In the case 
of a taxpayer engaged in a trade or business, there shall be allowed as 
a deduction under this section any amount paid or incurred to promote 
tourism to the United States by individuals who are not residents of 
the United States. The preceding sentence shall apply only to amounts 
which are not otherwise allowable as a deduction under this chapter.''
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred after the date of the enactment of this 
Act.

SEC. 305. DEDUCTION ALLOWED FOR CONVENTIONS ON FOREIGN-FLAGGED CRUISE 
              SHIPS.

    (a) In General.--The first sentence of paragraph (2) of section 
274(h) of the Internal Revenue Code of 1986 (relating to attendance at 
conventions, etc.) is amended by striking ``business and that--'' and 
all that follows and inserting ``business.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to cruises beginning after the date of the enactment of this Act.

SEC. 306. REAUTHORIZATION OF THE AIRLINE TICKET TAX.

    (a) In General.--Sections 4261(g) and 4271(d) of the Internal 
Revenue Code of 1986 are each amended by striking ``January 1, 1997'' 
and inserting ``January 1, 2002''.
    (b) Transfers to Airport and Airway Trust Fund.--Section 9502 of 
such Code is amended--
            (1) in subsection (b), by striking ``January 1, 1997'' each 
        place it appears and inserting ``January 1, 2002''; and
            (2) in subsection (f), by striking ``December 31, 1996'' 
        and inserting ``December 31, 2001''.

SEC. 307. SENSE OF CONGRESS RELATING TO AIRLINE ACCESSIBILITY TO JAPAN.

    It is the sense of Congress that the Secretary of the Department of 
Transportation, in conjunction with the United States Trade 
Representative, should work to amend the 1952 bilateral agreement 
involving airline accessibility to and from Japan. The new agreement 
should include increased access by airlines based in the United States.

          TITLE IV--IMPROVEMENT OF VISA PROGRAMS AND ISSUANCE

SEC. 401. VISA WAIVER PROGRAM.

    (a) Elimination of Joint Action Requirement.--Section 217 of the 
Immigration and Nationality Act (8 U.S.C. 1187) is amended--
            (1) in subsection (a), by striking ``Attorney General and 
        the Secretary of State, acting jointly'' and inserting 
        ``Attorney General, in consultation with the Secretary of 
        State'';
            (2) in subsection (c)(1), by striking ``Attorney General 
        and the Secretary of State acting jointly'' and inserting 
        ``Attorney General, in consultation with the Secretary of 
        State,''; and
            (3) in subsection (d), by striking ``Attorney General and 
        the Secretary of State, acting jointly,'' and inserting 
        ``Attorney General, in consultation with the Secretary of 
        State,''.
    (b) Extension of Program.--Section 217(f) of the Immigration and 
Nationality Act (8 U.S.C. 1187(f)) is amended by striking ``1996'' and 
inserting ``2002.''.
    (c) Duration and Termination of Designation of Pilot Program 
Countries.--
            (1) In general.--Section 217(g) of the Immigration and 
        Nationality Act (8 U.S.C. 1187(g)) is amended to read as 
        follows:
    ``(g) Duration and Termination of Designation.--
            ``(1) In general.--
                    ``(A) Determination and notification of 
                disqualification rate.--Upon determination by the 
                Attorney General that a pilot program country's 
                disqualification rate is 2 percent or more, the 
                Attorney General shall notify the Secretary of State.
                    ``(B) Probationary status.--If the program 
                country's disqualification rate is greater than 2 
                percent but less than 3.5 percent, the Attorney General 
                shall place the program country in probationary status 
                for a period not to exceed 2 full fiscal years 
                following the year in which the determination under 
                subparagraph (A) is made.
                    ``(C) Termination of designation.--Subject to 
                paragraph (3), if the program country's 
                disqualification rate is 3.5 percent or more, the 
                Attorney General shall terminate the country's 
                designation as a pilot program country effective at the 
                beginning of the second fiscal year following the 
                fiscal year in which the determination under 
                subparagraph (A) is made.
            ``(2) Termination of probationary status.--
                    ``(A) In general.--If the Attorney General 
                determines at the end of the probationary period 
                described in paragraph (1)(B) that the program country 
                placed in probationary status under such paragraph has 
                failed to develop a machine-readable passport program 
                as required by section (c)(2)(C), or has a 
                disqualification rate of 2 percent or more, the 
                Attorney General shall terminate the designation of the 
                country as a pilot program country. If the Attorney 
                General determines that the program country has 
                developed a machine-readable passport program and has a 
                disqualification rate of less than 2 percent, the 
                Attorney General shall redesignate the country as a 
                pilot program country.
                    ``(B) Effective date.--A termination of the 
                designation of a country under subparagraph (A) shall 
                take effect on the first day of the first fiscal year 
                following the fiscal year in which the determination 
                under such subparagraph is made. Until such date, 
                nationals of the country shall remain eligible for a 
                waiver under subsection (a).
            ``(3) Nonapplicability of certain provisions.--Paragraph 
        (1)(C) shall not apply unless the total number of nationals of 
        a pilot program country described in paragraph (4)(A) exceeds 
        100.
            ``(4) Definition.--For purposes of this subsection, the 
        term `disqualification rate' means the percentage which--
                    ``(A) the total number of nationals of the pilot 
                program country who were--
                            ``(i) excluded from admission or withdrew 
                        their application for admission during the most 
                        recent fiscal year for which data are 
                        available; and
                            ``(ii) admitted as nonimmigrant visitors 
                        during such fiscal year and who violated the 
                        terms of such admission; bears to
                    ``(B) the total number of nationals of such country 
                who applied for admission as nonimmigrant visitors 
                during such fiscal year.''.
            (2) Transition.--A country designated as a pilot program 
        country with probationary status under section 217(g) of the 
        Immigration and Nationality Act (as in effect on the day before 
        the date of the enactment of this Act) shall be considered to 
        be designated as a pilot program country on and after such 
        date, subject to placement in probationary status or 
        termination of such designation under such section (as amended 
        by paragraph (1)).
            (3) Conforming amendment.--Section 217(a)(2)(B) of the 
        Immigration and Nationality Act (8 U.S.C. 1187(a)(2)(B)) is 
        amended by striking ``or is'' through ``subsection (g).'' and 
        inserting a period.

SEC. 402. INCREASE IN VISA PROCESSING CONSULAR PERSONNEL.

    At consular posts in Seoul, South Korea, Caracus, Venezuela, 
Brasilia, Rio de Janeiro, and Sao Paulo, Brazil, and at the American 
Institute in Taiwan in Taipei, the Secretary of State shall increase 
the number of consular personnel assigned at such locations as of 
October 1, 1997, by 25 percent above the number of consular personnel 
as of September 30, 1996, and shall maintain such increase until 
September 30, 2001. The Secretary of State shall ensure, to the maximum 
extent practicable, that the increased consular personnel shall be 
deployed to expedite the processing of nonimmigrant visa applications.
                                 <all>