Short title; table of contents

(a)

Short title

This Act may be cited as the

Travel Promotion Act of 2008

. (b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. The Corporation for Travel Promotion.

Sec. 3. Accountability measures.

Sec. 4. Matching public and private funding.

Sec. 5. Travel Promotion Fund fees.

Sec. 6. Investment of Funds.

Sec. 7. Prohibition on use of funds.

Sec. 8. Amendments to the International Travel Act of 1961.

Sec. 9. Definitions.

Sec. 10. G.A.O. study

The Corporation for Travel Promotion

(a)

Establishment

The Corporation for Travel Promotion is established as a nonprofit corporation. The Corporation shall not be an agency or establishment of the United States Government. The Corporation shall be subject to the provisions of the District of Columbia Nonprofit Corporation Act (sec. 29–301.01 et seq., D.C. Official Code), to the extent that such provisions are consistent with this section, and shall have the powers conferred upon a nonprofit corporation by that Act to carry out its purposes and activities. (b)

Board of Directors

(1)

In general

The Corporation shall have a board of directors of 15 members, appointed by the Secretary of Commerce, but not before consultation with the Secretaries of Homeland Security, State, and Education, as appropriate, each of whom is a United States citizen, and of whom— (A)one shall have appropriate expertise and experience in the hotel accommodations sector; (B)one shall have appropriate expertise and experience in the restaurant sector; (C)one shall have appropriate expertise and experience in the retail sector, or in associations representing that sector; (D)one shall have appropriate expertise and experience in the small business sector, or in associations representing that sector; (E)one shall have appropriate expertise and experience in the advertising sector; (F)one shall have appropriate expertise and experience in the attractions sector; (G)one shall have appropriate expertise and experience in the recreation sector; (H)one shall have appropriate expertise and experience in the research, development, or manufacturing sector; (I)one shall have appropriate expertise and experience in the financial services sector; (J)one shall have appropriate expertise and experience in the passenger air sector; (K)one shall have appropriate expertise and experience in the car rental sector; (L)one shall have appropriate expertise and experience as an official at the state and municipal level, or in associations of such officials; (M)one shall have appropriate expertise and experience in the higher education sector and in coordinating international scholarly conferences in the United States; (N)one shall have appropriate expertise and experience in immigration law and policy, including visa requirements and United States entry procedures; and (O)one shall have appropriate expertise in matters relating to homeland security policy, including border and travel security and facilitation programs. (2)

Incorporation

The members of the initial board of directors shall serve as incorporators and shall take whatever actions are necessary to establish the Corporation under the District of Columbia Nonprofit Corporation Act (sec. 29–301.01 et seq.). (3)

Term of office

The term of office of each member of the board appointed by the Secretary shall be 3 years, except that, of the members first appointed— (A)3 shall be appointed for terms of 1 year; (B)4 shall be appointed for terms of 2 years; and (C)4 shall be appointed for terms of 3 years. (4)

Vacancies

Any vacancy in the board shall not affect its power, but shall be filled in the manner required by this section. Any member whose term has expired may serve until the member’s successor has taken office, or until the end of the calendar year in which the member’s term has expired, whichever is earlier. Any member appointed to fill a vacancy occurring prior to the expiration of the term for which that member’s predecessor was appointed shall be appointed for the remainder of the predecessor’s term. No member of the board shall be eligible to serve more than 2 consecutive full terms. (5)

Election of chairman and vice chairman

Members of the board shall annually elect one of their members to be chairman and elect 1 or more of their members as a vice chairman or vice chairmen. (6)

Status as federal employees

Notwithstanding any provision of law to the contrary, no member of the board may be considered to be a Federal employee of the United States by virtue of his or her service as a member of the board. (7)

Compensation; expenses

No member of the board shall receive any compensation from the Federal Government or the Corporation by virtue of his or her service as a member of the board. Each member of the board shall be paid actual travel expenses and per diem in lieu of subsistence expenses when away from his or her usual place of residence, in accordance with section 5703 of title 5, United States Code. (c)

Officers and Employees

(1)

In general

The Corporation shall have a President, and such other officers as may be named and appointed by the board for terms and at rates of compensation fixed by the board. No individual other than a citizen of the United States may be an officer of the Corporation. The corporation may hire and fix the compensation of such employees as may be necessary to carry out its purposes. No officer or employee of the Corporation may receive any salary or other compensation (except for compensation for services on boards of directors of other organizations that do not receive funds from the Corporation, on committees of such boards, and in similar activities for such organizations) from any sources other than the Corporation for services rendered during the period of his or her employment by the Corporation. Service by any officer on boards of directors of other organizations, on committees of such boards, and in similar activities for such organizations shall be subject to annual advance approval by the board and subject to the provisions of the Corporation’s Statement of Ethical Conduct. All officers and employees shall serve at the pleasure of the board. (2)

Nonpolitical nature of appointment

No political test or qualification shall be used in selecting, appointing, promoting, or taking other personnel actions with respect to officers, agents, or employees of the Corporation. (d)

Nonprofit and Nonpolitical Nature of Corporation

(1)

Stock

The Corporation shall have no power to issue any shares of stock, or to declare or pay any dividends. (2)

Profit

No part of the income or assets of the Corporation shall inure to the benefit of any director, officer, employee, or any other individual except as salary or reasonable compensation for services. (3)

Politics

The Corporation may not contribute to or otherwise support any political party or candidate for elective public office. (4)

Sense of Congress regarding lobbying activities

It is the sense of Congress that the Corporation established under this Act should not engage in any lobbying activities with any employee or branch of the Federal Government in favor of or in opposition to any political issue. (e)

Duties and Powers

(1)

In general

The Corporation shall develop and execute a plan to— (A)provide useful information to foreign tourists, business people, students, scholars, scientists and others interested in traveling to the United States, including the distribution of material provided by the Federal Government concerning entry requirements, required documentation, fees, and processes, to prospective travelers, travel agents, tour operators, meeting planners, foreign governments, travel media and other international stakeholders; (B)identify and address perceptions in other countries regarding United States entry policies that tend to limit attempts to travel to the United States; (C)maximize the economic and diplomatic benefits of travel to the United States by promoting the United States of America to world travelers through the use of, but not limited to, all forms of advertising, outreach to trade shows, and other appropriate promotional activities; and (D)identify opportunities and strategies to promote tourism to rural and urban areas equally. (2)

Specific powers

In order to carry out the purposes of this section, the Corporation may— (A)obtain grants from and make contracts with individuals and private companies, State, and Federal agencies, organizations, and institutions; (B)hire or accept the voluntary services of consultants, experts, advisory boards, and panels to aid the Corporation in carrying out its purposes; and (C)take such other actions as may be necessary to accomplish the purposes set forth in this section. (f)

Open Meetings

Meetings of the board of directors of the Corporation, including any committee of the board, shall be open to the public. The board may, by majority vote, close any such meeting only for the time necessary to preserve the confidentiality of commercial or financial information that is privileged or confidential, to discuss personnel matters, or to discuss legal matters affecting the Corporation, including pending or potential litigation. (g)

Major campaigns

The board may not authorize the Corporation to obligate or expend more than $25,000,000 on any advertising campaign, promotion, or related effort unless— (1)the obligation or expenditure is approved by an affirmative vote of at least 2/3 of the members of the board present at the meeting; (2)at least 8 members of the board are present at the meeting at which it is approved; and (3)each member of the board has been given at least 3 days advance notice of the meeting at which the vote is to be taken and the matters to be voted upon at that meeting. (h)

Fiscal accountability

(1)

Fiscal year

The Corporation shall establish as its fiscal year the 12-month period beginning on October 1. (2)

Budget

The Corporation shall adopt a budget for each fiscal year. (3)

Annual audits

The Corporation shall engage an independent accounting firm to conduct an annual financial audit of the Corporation’s operations and shall publish the results of the audit.

Accountability measures

(a)

Objectives

The Board shall establish annual objectives for the Corporation for each fiscal year subject to approval by the Secretary, in consultation with the Secretary of Homeland Security and the Secretary of State. The Corporation shall establish a marketing plan for each fiscal year not less than 60 days before the beginning of that year and provide a copy of the plan, and any revisions thereof, to the Secretary. (b)

Budget

The board shall transmit a copy of the Corporation’s budget for the forthcoming fiscal year to the Secretary not less than 60 days before the beginning of each fiscal year, together with an explanation of any expenditure provided for by the budget in excess of $5,000,000 for the fiscal year. The Corporation shall make a copy of the budget and the explanation available to the public and shall provide public access to the budget and explanation on the Corporation’s website. (c)

Annual Report to Congress

The Corporation shall submit an annual report for the preceding fiscal year to the Secretary of Commerce and the Secretary of Homeland Security for transmittal to Congress on or before the 15th day of May of each year. The report shall include— (1)a comprehensive and detailed report of the Corporation’s operations, activities, financial condition, and accomplishments under this Act; (2)a comprehensive and detailed inventory of amounts obligated or expended by the Corporation during the preceding fiscal year; (3)a detailed description of each in-kind contribution, its fair market value, the individual or organization responsible for contributing, its specific use, and a justification for its use within the context of the Corporation's mission; (4)an objective and quantifiable measurement of its progress, on an objective-by-objective basis, in meeting the objectives established by the board; (5)an explanation of the reason for any failure to achieve an objective established by the board, and any revisions or alterations to the Corporation’s objectives under subsection (a); (6)a comprehensive and detailed report of the Corporation’s operations and activities to promote tourism in rural and urban areas; and (7)such recommendations as the Corporation deems appropriate.

Matching public and private funding

(a)

Establishment of Travel Promotion Fund

There is hereby established in the Treasury a fund which shall be known as the Travel Promotion Fund. (b)

Funding

(1)

First year

For fiscal year 2009, the Secretary of the Treasury, not earlier than October 1, 2008, and not before the Secretary has appointed all members of the Corporation’s board of directors, may transfer to the Corporation such sums as may be necessary, but not to exceed $10,000,000, subject to the availability of appropriations to carry out this section to cover its initial expenses and activities under this Act. At the earliest practicable date, the Corporation shall reimburse the Treasury any such amounts borrowed from the Treasury, with at least 50 percent reimbursed before October 1, 2011, and the remainder reimbursed before October 1, 2013. Reimbursement shall include interest at a rate determined by the Treasury taking into consideration current market yields on outstanding Treasury securities of comparable maturities and including any additional charges determined by the Secretary of the Treasury to cover any probable losses and reasonable administrative costs. The Secretary of the Treasury shall determine and assess penalties to be applied for late payments of principal or interest and other Federal credit terms designed to minimize Federal exposure to loss, consistent with the Federal Credit Reform Act and other applicable Federal credit policies. (2)

Subsequent years

For each of fiscal years 2010 through 2013, from amounts deposited in the general fund of the Treasury during the preceding fiscal year from fees under section 5, the Secretary of the Treasury shall transfer not more than $100,000,000 to the Fund, which shall be made available to the Corporation, subject to subsections (c), (d), and (e), to carry out its functions under this Act. Transfers shall be made by the Secretary of the Treasury at least quarterly on the basis of estimates by the Secretary of the Treasury, determined in consultation with the Board, of contributions made to the Corporation by non-Federal sources, and proper adjustments shall be made in amounts subsequently transferred to the extent prior estimates were in excess or less than actual contributions from non-Federal sources. (c)

Matching Requirement

(1)

In general

The Secretary of the Treasury shall make available to the Corporation from amounts available in the Travel Promotion Fund— (A)for fiscal year 2010, twice the amount that will be collected from non-Federal sources by the Corporation pursuant to section 4(b)(2) of this Act and not to exceed $100,000,000; and (B)for subsequent fiscal years, an amount equal to the amount that will be collected from non-Federal sources by the Corporation pursuant to section 4(b)(2) of this Act and not to exceed $100,000,000. (2)

Goods and services

For the purpose of determining the amount of matching funds, other than money, available to the Corporation— (A)the fair market value, as determined by the Corporation, of goods and services (including advertising) contributed to the Corporation for use under this Act may be included in the determination; but (B)the fair market value of such goods and services may not account for more than 65 percent of the matching requirement for the Corporation in any fiscal year. (3)

Right of refusal

The Corporation may decline to accept any contribution in kind that it determines to be inappropriate, not useful, or commercially worthless. (d)

Grant offset

For a given fiscal year, the Secretary of the Treasury shall reduce the total amount of funding to be transferred to the Corporation from the Travel Promotion Fund by the amount of grants received by the Corporation pursuant to section 2(e)(2)(A) to be used during that fiscal year. (e)

Limitation

The Corporation shall not expend funds or obligate to expend funds that will exceed total amounts received by the Corporation for a given fiscal year.

Travel Promotion Fund fees

Section 217(h)(3)(B) of the Immigration and Nationality Act (8 U.S.C. 1187(h)(3)(B)) is amended— (1)in clause (i), by striking ; and and inserting a semicolon; (2)in clause (ii), by striking the period and inserting ; and; and (3)by adding at the end the following:

(iii)set for an amount that includes an additional amount of not less than $10 above the amount set under clause (i).

The additional amount required under clause (iii) shall be transferred to the Treasury for the purpose of offsetting appropriations made to the Corporation for Travel Promotion established in section 2 of the Travel Promotion Act of 2008, according to the requirements of section 4 of such Act. Such additional amount may be reduced if the secretary of the Treasury determines that the additional amount is not necessary to ensure that the Corporation is fully funded.

Investment of Funds

Pending disbursement pursuant to a program, plan, or project, the Corporation may invest funds received by the Corporation only in obligations of the United States or any agency thereof, in general obligations of any State or any political subdivision thereof, in any interest-bearing account or certificate of deposit of a bank that is a member of the Federal Reserve System, or in obligations fully guaranteed as to principal and interest by the United States. The Secretary of the Treasury shall reduce the total amount of funding for a given fiscal year to be transferred from the Travel Promotion Fund to the Corporation by the amount of interest earned by the Corporation as a result of its investments pursuant to this section for the preceding fiscal year.

Prohibition on use of funds

No funds raised by the Treasury Department’s Travel Promotion Fund or the Corporation for Travel Promotion may be used to directly promote or advertise a specific corporation.

Amendments to the International Travel Act of 1961

(a)

Powers and duties of Secretary of Commerce

Section 201 of the International Travel Act of 1961 (22 U.S.C. 2122) is amended— (1)in the first sentence of the matter preceding paragraph (1)— (A)by striking and by the United States National Tourism Organization Act of 1996; and (B)by striking United States National Tourism Organization and inserting Corporation for Travel Promotion (established by section 3 of the Travel Promotion Act of 2008); (2)in paragraph (4), by striking United States National Tourism Organization and inserting Corporation for Travel Promotion; and (3)by adding at the end the following:

Such plan may not include a comprehensive international advertising campaign relating to critical tourism functions.

(b)

Tourism Policy Council

(1)

Membership

Subsection (b) of section 301 of the International Travel Act of 1961 (22 U.S.C. 2124) is amended— (A)by striking paragraphs (8) through (10); (B)by redesignating paragraph (11) as paragraph (13); (C)by inserting after paragraph (7) the following new paragraphs:

(8)The Secretary of Homeland Security. (9)The Commissioner of U.S. Customs and Border Protection of the Department of Homeland Security. (10)The Assistant Secretary of U.S. Customs and Immigration Enforcement of the Department of Homeland Security. (11)The Secretary of Education.

; and

(D)in paragraph (13) (as redesignated by subparagraph (B) of this paragraph), by inserting , in consultation with other members of the Council at the end before the period. (2)

Meetings

Subsection (d) of such section is amended to read as follows:

(d)The Council shall meet not less than 2 times a year. For the purposes of conducting business, each member of the Council may appoint a designee to represent such member during one or more meetings of the Council.

(3)

Involvement of Federal agencies and departments

Subsection (e) of such section is amended by adding at the end the following new paragraph:

(4)Members of the Council shall provide the Corporation for Travel Promotion with timely information regarding documentation and procedures required for admission to the United States and regarding strategies planned by any Federal department or agency to promote travel to the United States for tourism, business, study, scholarship, scientific exchange, or other purposes, so that the Corporation for Travel Promotion may better conduct its communications and promotion activities.

(4)

Annual report

Subsection (g)(3) of such section is amended by striking United States National Tourism Organization and inserting Corporation for Travel Promotion. (5)

Applicability of Federal Advisory Committee Act

Subsection (h) of such section is amended by striking President of the United States National Tourism Organization and inserting President of the Corporation for Travel Promotion. (c)

Repeal of authorities relating to the United States Travel and Tourism Promotion Advisory Board

Section 210 of the Department of Commerce and Related Agencies Appropriations Act, 2003 (contained in title II of division B of Public Law 108–7; 117 Stat. 78–79; 22 U.S.C. 2122 note) is amended— (1)by striking subsections (b) through (d); and (2)by redesignating subsection (e) as subsection (b).

Definitions

In this Act, the following definitions apply: (1)

Board

The term Board means the board of directors of the Corporation. (2)

Corporation

The term Corporation means the Corporation for Travel Promotion established by section 2. (3)

Fund

The term Fund means the Travel Promotion Fund established by section 4. (4)

Secretary

Except as otherwise expressly provided, the term Secretary means the Secretary of Commerce.

10.

G.A.O. study

(a)

In General

Not later than 90 days after the date of enactment of this Act, the Government Accountability Office shall initiate a study to assess barriers to entry into the United States by foreign travelers. The GAO shall consult with the Department of Homeland Security, including U.S. Immigration and Customs Enforcement and Customs and Border Protection, the Department of Commerce, and the Department of the Treasury, as necessary. (b)

Report

Not later than 1 year after the date of enactment of this Act, the GAO shall report the findings to the appropriate Congressional committees. The report shall include— (1)the GAO’s findings on specific barriers to entry into the United States by foreign travelers; and (2)recommendations for initiatives that may reduce those barriers.