[Senate Report 110-233]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 514

110th Congress                                                   Report
 1st Session                     SENATE                         110-233
_______________________________________________________________________

                      TRAVEL PROMOTION ACT OF 2007



                               __________



                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 1661




 November 27 legislative day, November 16, 2007.--
                         Ordered to be printed

 Filed, under authority of the order of the Senate of November 16, 2007



                              --------


                  U.S. GOVERNMENT PRINTING OFFICE

69-010                     WASHINGTON : 2007








       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                       one hundred tenth congress
                             first session

                   DANIEL K. INOUYE, Hawaii, Chairman
                   TED STEVENS, Alaska, Vice-Chairman
JOHN D. ROCKEFELLER IV, West         JOHN McCAIN, Arizona
    Virginia                         TRENT LOTT, Mississippi
JOHN F. KERRY, Massachusetts         KAY BAILEY HUTCHISON, Texas
BYRON L. DORGAN, North Dakota        OLYMPIA J. SNOWE, Maine
BARBARA BOXER, California            GORDON H. SMITH, Oregon
BILL NELSON, Florida                 JOHN ENSIGN, Nevada
MARIA CANTWELL, Washington           JOHN E. SUNUNU, New Hampshire
FRANK R. LAUTENBERG, New Jersey      JIM DeMINT, South Carolina
MARK PRYOR, Arkansas                 DAVID VITTER, Louisiana
THOMAS CARPER, Delaware              JOHN THUNE, South Dakota
CLAIRE McCASKILL, Missouri
AMY KLOBUCHAR, Minnesota
          Margaret Cummisky, Staff Director and Chief Counsel
         Lila Helms, Deputy Staff Director and Policy Director
       Jean Toal Eisen, Senior Advisor and Deputy Policy Director
     Christine Kurth, Republican Staff Director and General Counsel
                Paul J. Nagle, Republican Chief Counsel
             Mimi Braniff, Republican Deputy Chief Counsel






















                                                       Calendar No. 514
110th Congress                                                   Report
                                 SENATE
 1st Session                                                    110-233

======================================================================



 
                      TRAVEL PROMOTION ACT OF 2007

                                _______
                                

   November 27 (legislative day, November 16), 2007.--Ordered to be 
                                printed

 Filed, under authority of the order of the Senate of November 16, 2007

                                _______
                                

       Mr. Inouye, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 1661]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill joint resolution deg. (S. 
H.R. deg. 1661) TITLE deg. to communicate 
United States travel policies and improve marketing and other 
activities designed to increase travel in the United States 
from abroad, having considered the same, reports favorably 
thereon with amendments and recommends that the bill 
joint resolution deg. (as amended) do pass.

                          Purpose of the Bill

  The purpose of the Travel Promotion Act of 2007, as reported, 
is to increase international travel to all areas of the United 
States, communicate U.S. travel policies overseas, and make 
entry procedures into the United States more efficient and 
welcoming.

                          Background and Needs

  Travel and tourism generates approximately $1.3 trillion in 
economic activity in the United States every year. The U.S. 
travel and tourism industry is one of the Nation's largest 
employers with approximately 8.3 million direct travel-
generated jobs. According to the Department of Commerce (DOC), 
international travel receipts (travel-related tourism spending, 
including passenger fares) in the United States were $107.8 
billion in 2006, which surpassed the previous record of $103.1 
billion set in 2000. In 2006, foreign travelers spent $7.5 
billion more in the United States than U.S. travelers spent 
abroad. Travel and tourism exports accounted for seven percent 
of all U.S. exports and 26 percent of services exports. 
According to the Travel Industry Association of America (TIAA), 
an increase of one percent in international travel market share 
would produce a $3 billion increase in payroll receipts.
  While the tourism industry continues to be vital to the U.S. 
economy, the Nation's share of the world market of 
international tourism is in decline. According to the TIA, the 
global international travel market has increased by 20 percent 
since 2000. During this same period, however, overseas travel 
to the United States has declined by 17 percent and this 
decline has resulted in a loss of nearly 200,000 jobs, $94 
billion in visitor spending, and $16 billion in Federal, State 
and local tax receipts. In 1992, according to the DOC, the 
United States attracted 9.4 percent of all international 
tourist arrivals from around the world. In 2004, the United 
States attracted only 6 percent of total international 
arrivals. While the 2006 trade surplus related to tourism is 
$7.5 billion, the 1992 surplus was $22.2 billion. Trade and 
tourism officials and experts note two issues that have 
contributed to the decline and need to be addressed: (1) the 
lack of a coordinated international tourism advertising 
campaign; and (2) the increased difficulty for international 
visitors to gain entry to the United States.
  The Federal government recognizes the importance of travel to 
the U.S. economy. The DOC has taken an active role to promote 
international travel to the United States, but emphasis on 
specific promotions has fluctuated over time. In addition, 
following September 11, 2001, the U.S. government has increased 
border security, which has resulted in a significant decrease 
in the number of visitors to the United States. Recently, the 
State Department and the Department of Homeland Security (DHS) 
have recognized the need to make the visa and entry process 
more efficient and welcoming for foreign visitors, while 
maintaining border security. In 2006, Secretary of State 
Condoleeza Rice and Secretary of Homeland Security Michael 
Chertoff initiated a joint agreement, the Rice-Chertoff Joint 
Vision to Ensure Secure Borders and Open Doors, to utilize 
technology and eliminate inefficiencies to improve both 
international travelers' ability to participate in U.S. tourism 
and border security.
  Despite ongoing Federal efforts, business leaders across 
multiple industries note the continued loss of international 
travelers to other destinations. Two comprehensive reports 
recommended reforms needed to regain international arrivals. 
The United States Travel and Tourism Advisory Board (USTTAB) 
issued its report to the DOC on September 5, 2006. The Discover 
America Partnership (DAP), an organization comprised of a 
number of leaders from the travel and tourism industries, 
released its report on January 31, 2007.
  History of Federally Funded International Travel Promotion. 
Federal promotion of tourism in the United States dates back to 
the establishment of the United States Travel Bureau in 1937. 
However, only in the past 40 years has the DOC had an office or 
administration that promotes U.S. tourism to foreign citizens 
through coordinated advertising. Enacted in 1961, the 
International Travel Act required the Secretary of Commerce, 
through the establishment of the United States Travel Service 
(USTS), to carry out a program to encourage travel to the 
United States by persons from foreign countries. Appropriations 
directed to the USTS increased until 1977, when Congress and 
the White House began scaling back the government's role in 
advertising. Federal funding for advertising was eliminated in 
1996, when Congress abolished the United States Travel and 
Tourism Administration, the successor of the USTS.
  Between 2001 and 2003, total tourism receipts dropped almost 
12 percent, and tourism related industries lost approximately 
390,000 jobs. Congress decided to reinitiate Federal tourism 
advertising in 2003 in response to the downturn. The fiscal 
year (FY) 2003 Consolidated Appropriations Resolution (P.L. 
108-7, Sec. 210), authorized the Secretary of Commerce to 
``award grants and make direct lump sum payments in support of 
an international advertising and promotional campaign developed 
in consultation with the private sector to encourage 
individuals to travel to the United States consisting of radio, 
television, and print advertising and marketing programs.'' 
This law also established the USTTAB and provided a one-time 
$50 million appropriation.
  The USTTAB is comprised of 14 senior travel and tourism 
executives from across the United States. These members advise 
Secretary of Commerce Carlos Gutierrez on how to best increase 
the number of international visitors to the United States and 
ensure that the share of the country's international receipts 
continues to grow. In addition, the board advises the Secretary 
on the creation of a national tourism policy. The USTTAB 
planned an advertising campaign called ``Visit America.'' The 
DOC Office of Travel and Tourism Industries (OTTI) was 
responsible for overseeing this campaign.
  Initially, the OTTI planned to target five countries (Canada, 
Germany, Japan, Mexico, and the United Kingdom) with 
advertisements, but Congress rescinded $44 million in the FY 
2004 Consolidation Appropriations Act (P.L. 108-199). The OTTI 
used the remaining $6 million on an advertising campaign 
focused at the United Kingdom alone. In the fall of 2004, the 
FY 2005 Consolidation Appropriations Act (P.L. 108-447) gave an 
additional $10 million to the program, allowing the OTTI to 
expand the advertising campaign to Japan in 2005. In December 
2005, Congress appropriated another $4 million in the FY 2006 
Science, State, Justice, Commerce, and Related Agencies 
Appropriations Act (P.L. 109-108), providing a total of $20 
million for the campaign to date. On January 31, 2007, the DOC 
announced a $3.9 million cooperative agreement with the TIA to 
develop a destination website for the United States. TIA will 
create and market multi-language consumer-focused Web sites 
that will encourage leisure travel to the United States from a 
broad range of important markets.
  USTTAB Report. The USTTAB report, entitled ``Restoring 
America's Travel Brand: A National Strategy to Compete for 
International Visitors,'' recommended actions in four areas to 
help improve America's standing in the international travel 
market: (i) creating a stronger voice for travel in government; 
(ii) making the arrival experience of travelers more welcoming; 
(iii) removing unnecessary barriers to travel; and (iv) 
avoiding inappropriate taxes, fees, and regulations on 
travelers.
  The USTTAB report found that the countries that claim the 
largest share of the growth in the international travel market 
are those that have ministries of tourism or other governmental 
entities that help coordinate tourism policy decisions. The 
United States, by contrast, has no dedicated office of tourism 
or official to advocate at the highest policy levels. The 
USTTAB report recommended the creation of an office with the 
power to coordinate government policy to enhance the Nation's 
competitive standing in the global travel market. That Federal 
office would serve as an institutional home and voice for the 
industry; energize interagency communication regarding travel 
and tourism; identify existing private sector advisory 
committees and share their input across agencies, industry, and 
the public; and coordinate the roles of other government 
agencies to more effectively expand travel and tourism 
promotion, and address infrastructure needs and development.
  The report contained numerous suggestions on making the first 
arrival experiences of international travelers more welcoming. 
The USTTAB recommended fully staffing the Customs and Border 
Patrol (CBP) and the Transportation Security Administration 
(TSA) to reduce wait times at inspection points. Members of the 
USTTAB and other industry participants offered their expertise 
in managing waiting lines and staffing patterns to Federal 
agencies interfacing with travelers. The TIA entered 
discussions with the Under Secretary of State for Public 
Diplomacy and Public Affairs in that effort. The travel and 
tourism industry also has offered to advise Federal agencies on 
signage and the use of international symbols to direct and 
prepare travelers for the inspection process.
  The USTTAB report also recommended removing unnecessary 
barriers to travel. The USTTAB noted that the Nonimmigrant Visa 
Program is understaffed and cited a General Accountability 
Office report that found almost half of the Department of 
State's 211 visa-issuing posts reported maximum wait times for 
visa interviews of 30 days or more. The USTTAB was particularly 
concerned about the long waits in Brazil, China, India, Mexico, 
and Venezuela.
  Finally, the USTTAB report argued that Federal, State, local, 
special entity, and foreign-government imposed taxes and fees 
on rental cars, commercial aviation, hotels, and restaurant 
meals, among other services, increase the cost of travel and 
can dampen demand for inbound travel. In the report, the USTTAB 
asked the DOC to advocate against discriminatory taxing 
structures and to work within the interagency process to 
discourage travel taxes imposed by international authorities 
when the revenue raised has no clear benefit or connection to 
the travel and tourism industry.
  DAP Report. In 2006, the DAP was formed to examine the 
reasons for, and to develop policy recommendations to reverse, 
the decline in international travelers that started after 
September 11, 2001. On January 31, 2007, the DAP released a 
report entitled ``A Blueprint to Discover America.'' The report 
offers a three-point plan to increase foreign travel to the 
United States. Specifically, it calls for the creation of a 
marketing and communications program, modernization of U.S. 
ports of entry, and reform of the visa system.
  The DAP report recommended that the United States develop a 
robust and coordinated international traveler promotion 
campaign to compete with similar programs run by other 
countries. The report found that such a program should develop 
and implement a strategy that disseminates information about 
the improvements in the U.S. visa process and welcomes 
travelers to the United States; create a public-private 
partnership to help market and promote the United States 
abroad; and be based on a dependable funding source.
  The DAP also recommends establishing a model port of entry 
program at the 12 busiest airports. It suggests that such a 
program should be designed to decrease average processing time 
by hiring more CBP officers; expand the use of technology and 
improve CBP and TSA coordination; work with the private sector 
to improve customer service; and create a registered traveler 
program for trusted, low-risk foreigners.
  In addition, the DAP report focuses on delays in the visa 
application and processing system as a barrier to international 
travelers coming to the United States. The report recommends 
that the Federal government take steps to reduce visa applicant 
wait times to 30 days or less; strengthen security by both 
collecting traveler biometric information, including a full set 
of fingerprints, and creating a better exit tracking system; 
and increase the number of countries eligible for the visa 
waiver program.

                         Summary of Provisions

  S. 1661 would establish a nonprofit corporation (Corporation) 
to create and execute a nationally-coordinated travel promotion 
program. The purpose of the program would be to accurately 
communicate the Nation's travel policies, to encourage travel 
to the United States, and to provide international exposure for 
areas of the United States that do not have the resources to 
promote themselves overseas. The Corporation would be governed 
by a 15 member board of directors appointed by the Secretary of 
Commerce, which consists of representatives from States, the 
Federal government, higher education, and the travel industry. 
In the first year, the Corporation would be permitted to borrow 
start up funds from the Treasury, which would be paid back with 
interest over the course of five years. In subsequent years, 
the Corporation would be entitled to receive matching Federal 
funds from moneys collected from travelers under the Electronic 
Travel Authorization system to be established by the DHS. In 
order to be entitled to receive Federal funding, the 
Corporation would be required to raise non-Federal money and 
in-kind matching contributions at the rate of 50 percent in 
fiscal year 2009 and 100 percent in the subsequent years.
  In addition, the Travel Promotion Act would establish an 
office in the DOC known as the Office of Travel Promotion 
headed by the Under Secretary of Travel Promotion. The Under 
Secretary would serve as a liaison to the Corporation, work 
with the Secretaries of State and Homeland Security to ensure 
that international visitors are processed efficiently, and 
promote travel to the United States.
  Finally, S. 1661 would direct the Secretary of Homeland 
Security to establish a model ports-of-entry program for the 
purpose of providing a more efficient and welcoming 
international arrival process and to implement the program 
initially at the 20 U.S. international airports that have the 
highest number of foreign visitors arriving annually.

                          Legislative History

  The Commerce Committee held two hearings this session 
examining travel promotion. The first hearing was a full 
Committee hearing held on January 31, 2007, and chaired by 
Senator Byron Dorgan. The Committee heard testimony regarding 
the industry's perspective on the health of the travel industry 
and what legislative initiatives should be taken to strengthen 
the national economy without decreasing domestic security. The 
second hearing was held on March 20, 2007, in the Interstate 
Commerce, Trade, and Tourism Subcommittee. The Subcommittee 
heard testimony from representatives from the DOC, DHS, and 
State Department as well as representatives of State tourism 
agencies regarding their perspectives as to the state of the 
travel industry, difficulties that travelers face coming to the 
United States, and recommendations for encouraging 
international travel to America.
  On June 19, 2007, Senator Dorgan introduced S. 1661, the 
Travel Promotion Act of 2007, which was referred to the 
Committee on Commerce, Science, and Transportation. Chairman 
Inouye and Vice Chairman Stevens were original cosponsors of 
the measure. When S. 1661 was considered in executive session, 
Senators Smith, Kerry, Ensign, Pryor, Lautenberg, and Martinez 
were also cosponsors of the legislation. The bill has 27 
cosponsors in all as of the date on which this report was 
filed.
  On June 27, 2007, the Committee met in an open executive 
session to consider S. 1661. Chairman Inouye offered an 
amendment that made technical corrections to the legislation 
and clarified that the Corporation would be required to repay 
any borrowed startup funds from the Treasury with interest. An 
amendment by Vice Chairman Stevens was accepted to replace 
section 5 of the Act and insert language that would amend the 
Immigration and Nationality Act by authorizing the Secretary of 
Homeland Security to develop and implement a fully automated 
electronic travel authorization system to collect such basic 
biographical information as the Secretary of Homeland Security 
determines is necessary in advance of admitting a foreign 
traveler to enter the United States under the visa waiver 
program. The Stevens amendment would further authorize the 
Secretary of Homeland Security to charge users a fee to access 
the electronic travel authorization system. The fee would be 
used to cover the costs of administering the system and also 
would include an amount of no more than $10 per user that would 
be transferred to a fund in the Treasury that could be used to 
match industry contributions to the Corporation. Finally, the 
Stevens amendment would create a new section 9, which would 
direct the Secretary of Homeland Security to establish a model 
ports-of-entry program for the purpose of providing a more 
efficient and welcoming international arrival process and to 
implement the program initially at the 20 U.S. international 
airports that have the highest number of foreign visitors 
arriving annually and, subject to appropriations, to employ not 
fewer than an additional 200 CBP officers not later than the 
end of fiscal year 2008 for use at those airports. Senator 
Lautenberg offered an amendment to add one representative of 
the intercity passenger railroad business to the Corporation 
board. The Inouye, Stevens, and Lautenberg amendments were 
accepted en bloc.
  Senator Sununu offered an amendment to strike section 5 of 
the Act which, as amended by the manager's amendment, would 
authorize the Secretary of Homeland Security to develop and 
implement a fully automated electronic travel authorization 
system to collect basic biographical information from travelers 
under the visa waiver program and to impose a fee on each user 
of the system. The Sununu amendment was defeated by voice vote.
  Senator DeMint offered an amendment that would prohibit the 
imposition of a fee under section 5 of the Act unless the 
Secretary of State certifies in writing to the Secretary of 
Commerce that the time for processing visas has been 
significantly reduced so that travel is not discouraged and the 
Secretary of Homeland Security certifies to the Secretary of 
Commerce that significant improvements have been made in the 
processing of the arrival of international travelers. The 
DeMint amendment was defeated by voice vote.
  By voice vote, the bill, as amended, was ordered reported.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                                 November 16, 2007.
Hon. Daniel K. Inouye,
Chairman, Committee on Commerce, Science, and Transportation, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1661, the Travel 
Promotion Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susan Willie.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

S. 1661--Travel Promotion Act of 2007

    Summary: S. 1661 would establish a new organization, the 
Corporation for Travel Promotion (the Corporation), to promote 
international tourism in the United States. The Corporation 
would be funded through amounts borrowed from the Treasury, 
assessments on private firms operating in the travel industry, 
and new fees charged to users of the visa waiver program.
    Under S. 1661, all amounts available to the Corporation 
would be recorded as deposits into a new fund in the Treasury, 
and the Corporation would be authorized to spend amounts in 
that fund. CBO estimates that assessments imposed by the 
Corporation would increase revenues by an estimated $62 million 
over the 2009-2012 period and $145 million over the 2008-2017 
period, net of income and payroll tax offsets. CBO also 
estimates that enacting S. 1661 would increase direct spending 
by $3 million in 2008, $65 million over the 2008-2012 period, 
and $180 million over the 2008-2017 period.
    The bill also would establish the Office of Travel 
Promotion in the Department of Commerce (DoC) to develop 
programs to increase the number of international travelers 
coming to the United States and authorize the Office of Travel 
and Tourism Industries to expand its research activities. 
Finally, S. 1661 would authorize DHS to develop a program to 
improve the arrival process for international travelers in U.S. 
airports and to employ more customs officers at certain 
airports.
    Based on information from DoC and DHS, CBO estimates that 
implementing S. 1661 would increase discretionary spending by 
about $38 million in 2008 and $282 million over the 2008-2012 
period, assuming appropriation of the necessary amounts.
    S. 1661 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would impose no 
cost on state, local, or tribal governments.
    In the event that the Corporation imposes an assessment on 
firms in the travel industry, S. 1661 would impose a private-
sector mandate, as defined in UMRA, on the members of the 
industry who would be required to pay such an assessment. The 
Corporation could compel the payment of any assessments through 
the federal courts. Based on information from industry sources, 
CBO estimates that the cost to comply with the mandate would 
fall well below the annual threshold for private-sector 
mandates established by UMRA ($131 million in 2007, adjusted 
annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 1661 is shown in the following table. 
The costs of this legislation fall within budget function 370 
(commerce and housing credit) and 750 (administration of 
justice).
    Basis of estimate: CBO expects that the cash flows related 
to the Corporation would appear on the budget as governmental 
receipts and direct spending because S. 1661 specifies that the 
Corporation's finances would operate through the U.S. Treasury, 
and its assessments would stem from an exercise of the 
sovereign power of the federal government.
    For this estimate, CBO assumes that the bill would be 
enacted early in fiscal year 2008 and that the necessary 
amounts would be appropriated at the start of each fiscal year.

Revenues

    S. 1661 would authorize the Corporation to impose an annual 
assessment on certain sectors of the travel industry, pending 
approval in a referendum by members of the travel industry. The 
Corporation also would be authorized to accept voluntary 
contributions from private sources either in cash or, with 
limitations, in goods and services. Such assessments and any 
voluntary contributions would be recorded on the federal budget 
as additional revenues.
    CBO assumes that the annual assessment on the travel and 
tourism industry would total $20 million in 2009 as authorized 
by the bill. In subsequent years, CBO assumes that industry 
assessments would increase at the rate of inflation. We do not 
expect that the industry would make voluntary contributions 
that would substantially raise the Corporation's revenues above 
$20 million per year.

             TABLE 1.--ESTIMATED BUDGETARY IMPACT OF S. 1661
------------------------------------------------------------------------
                                      By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2008    2009    2010    2011    2012
------------------------------------------------------------------------
                         CHANGES IN REVENUES \1\

Estimated Revenues..............       0      15      15      16      16

                    CHANGES IN DIRECT SPENDING \1\

Estimated Budget Authority......      10      20      20      21      11
Estimated Outlays...............       3      14      14      19      15

              CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Department of Commerce:
    Office of Travel Promotion:
        Estimated Authorization        4       6       6       6       6
         Level..................
        Estimated Outlays.......       3       5       5       6       6
    Office of Travel and Tourism
     Industries:
        Estimated Authorization        5       9      14      15      17
         Level..................
        Estimated Outlays.......       4       8      13      14      16
Department of Homeland Security:
    Additional CBP Officers:
        Estimated Authorization       14      22      23      23      24
         Level..................
        Estimated Outlays.......      13      21      23      23      24
    Improved Airport
     Inspections:
        Estimated Authorization       20      20      20      20      20
         Level..................
        Estimated Outlays.......      18      20      20      20      20
    Total Changes
        Estimated Authorization       43      57      63      64      67
         Level..................
        Estimated Outlays.......      38      54      61      63     66
------------------------------------------------------------------------
\1\ See Table 2 for changes in direct spending and revenues over the
  2008-2017 period.

    Gross assessments of about $20 million annually would be 
partially offset by a loss of receipts from income and payroll 
taxes of 25 percent. Because excise taxes and other indirect 
business taxes reduce the tax base of income and payroll taxes, 
higher amounts of those taxes would lead to reductions in 
income and payroll tax revenues. As a result, CBO estimates 
that enacting S. 1661 would increase net revenues by $62 
million over the 2008-2012 period and $145 million over the 
2008-2017 period.

Direct spending

    CBO assumes that the Corporation would exercise its 
borrowing authority in fiscal year 2008 to cover about $10 
million in start-up and operating expenses. We assume that the 
Corporation would begin collecting assessments in 2009 and that 
it would spend the income from fees and assessments mostly in 
the year they are collected. CBO estimates that enacting S. 
1661 would increase direct spending by $3 million in 2008, $65 
million over the 2008-2012 period, and $180 million over the 
2008-2017 period.

                                             TABLE 2.--CHANGES IN DIRECT SPENDING AND REVENUES UNDER S. 1661
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                             By fiscal year, in millions of dollars--
                                         ---------------------------------------------------------------------------------------------------------------
                                            2008     2009     2010     2011     2012     2013     2014     2015     2016     2017   2008-2012  2008-2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   CHANGES IN REVENUES

Changes in Revenues.....................        0       15       15       16       16       16       16       17       17       17        62        145

                                                               CHANGES IN DIRECT SPENDING

Gross Changes in Direct Spending:
    Estimated Budget Authority..........       10       30       40       42       32       21       22       22       23       23       154        265
    Estimated Outlays...................        3       24       34       40       36       27       23       22       22       21       137        252
Offsetting Receipts (DHS Visa Waiver
 Fees):
    Estimated Budget Authority..........        0      -10      -20      -21      -21        0        0        0        0        0       -72        -72
    Estimated Outlays...................        0      -10      -20      -21      -21        0        0        0        0        0       -72        -72
Net Changes in Direct Spending:
    Estimated Budget Authority..........       10       20       20       21       11       21       22       22       23       23        82        193
    Estimated Outlays...................        3       14       14       19       15       27       23       22       22       21        65        180
--------------------------------------------------------------------------------------------------------------------------------------------------------

    For fiscal years 2009 through 2012, funds collected through 
an industry assessment (and any voluntary contributions) would 
be available to the Corporation to spend on its authorized 
activities and would be matched by a new fee that the 
Department of Homeland Security (DHS) would collect from users 
of the visa waiver program. Those fees would be available to 
the Corporation only to the extent that the Corporation 
provides matching funds from its assessments on industry 
participants and voluntary contributions. In 2009, fees could 
total up to 50 percent of private funds; in subsequent years, 
fees would have to be matched dollar-for-dollar with private 
funds. Based on its estimate that assessments would total $82 
million over the 2009-2012 period, CBO estimates that the new 
DHS fees would bring in $72 million during that period. Fees 
collected under the visa waiver program are classified as 
offsetting receipts (a credit against direct spending). CBO 
assumes that the additional fees authorized by S. 1661 would 
receive the same budgetary treatment.

Spending subject to appropriation

    Section 7 of S. 1661 would create the Office of Travel 
Promotion (OTP) to, among other things, serve as a liaison to 
the Corporation for Travel Promotion and to produce and 
distribute information about admission procedures for 
international travelers. Based on information from DoC, CBO 
estimates that the agency would hire 25 additional full-time 
employees to set up the OTP and undertake the duties outlined 
in the bill. CBO estimates that creating the OTP would cost $3 
million in 2008 and $25 million over the 2008-2012 period, 
assuming appropriation of the necessary amounts.
    Section 8 would broaden the research activities of the 
Office of Travel and Tourism Industries (OTTI) in the 
Department of Commerce. The bill would require OTTI to expand 
access to certain data, revise a survey of international travel 
patterns, and develop state-by-state estimates of foreign 
travel expenditures. Based on information from DoC, CBO 
estimates that the new requirements would cost $4 million in 
2008 and $55 million over the 2008-2012 period, assuming 
appropriation of the necessary amounts.
    Section 9 would direct DHS to hire an additional 200 
Customs and Border Protection (CBP) officers during fiscal year 
2008. Based on information from CBP, CBO estimates that the 
increase in staff would cost about $22 million annually, 
beginning in fiscal year 2009, including salaries, benefits, 
training, equipment, and support costs.
    Section 9 also would direct DHS to establish a program to 
improve the inspection procedures and the treatment of 
passengers arriving at U.S. airports from overseas. The program 
would be implemented at the 20 airports with the highest number 
of foreign visitors. Based on information from DHS, CBO 
estimates that the program would cost $20 million annually 
(about $1 million for each airport).
    Estimated Impact on State, Local, and Tribal Governments: 
S. 1661 contains no intergovernmental mandates as defined in 
UMRA and would impose no costs on state, local, or tribal 
governments.
    Estimated Impact on the Private Sector: The bill would 
authorize the Corporation to impose an annual assessment on 
certain U.S. members of the travel and tourism industry, 
provided industry members approve the assessment in a 
referendum. In the event that such an assessment is approved, 
S. 1661 would impose a private-sector mandate on the members of 
the international travel and tourist industry who would be 
required to pay the assessment. Based on information from 
sources in the travel industry, CBO estimates that payments of 
such assessments would total about $20 million per year, well 
below the annual threshold for private-sector mandates 
established by UMRA ($131 million in 2007, adjusted annually 
for inflation).
    Estimate prepared by: Federal Costs: Susan Willie and Mark 
Grabowicz; Federal Revenues: Mark Booth; Impact on State, 
Local, and Tribal Governments: Elizabeth Cove; Impact on the 
Private Sector: Paige Piper/Bach.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis; G. Thomas Woodward, Assistant 
Director for Tax Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                       NUMBER OF PERSONS COVERED

  The formation of the Corporation would require 
representatives of various sectors of the travel industry to 
participate on its board of directors. The general travel and 
tourism industry will not be impacted by S. 1661 directly, 
unless the Corporation chose to initiate a referendum under 
Section 6. At that point, impacted members of the travel and 
tourism industry would participate in a referendum and, if an 
assessment is approved, pay the assessment. Fees would be 
assessed on users of the electronic travel authorization system 
who are not U.S. citizens.

                            ECONOMIC IMPACT

  S. 1661 is not expected to have an adverse impact on the 
Nation's economy. Rather, promoting international travel to the 
United States through the creation of the Corporation, 
establishing an Under Secretary of Travel Promotion within the 
DOC, and establishing a model port of entry program should 
increase the number of international travelers to America, 
which will result in economic growth in the travel industry.

                                PRIVACY

  S. 1661 would have no anticipated impact on the privacy 
rights of individuals.

                               PAPERWORK

  In general, there will not be an increase in paper work for 
members of the travel and tourism industry. If the Corporation 
initiates a referendum and assessment under Section 6, then 
affected companies would need to submit associated paperwork.

                      Section-by-Section Analysis


Section 1. Short Title; Table of Contents.

  The section would cite the short title of the bill as the as 
the ``Travel Promotion Act of 2007'' and provide a table of 
contents.

Section 2. The Corporation for Travel Promotion.

  The section would establish the Corporation for Travel 
Promotion as a nonprofit corporation governed by a 15 member 
board of directors appointed by the Secretary of Commerce. The 
members would represent State and local interests; the Federal 
government; the higher education community; the small business 
community; hotels, restaurants, and retail businesses; 
passenger air transportation; attractions and recreational 
businesses; the intercity passenger railroad business; and car 
rental businesses. The members of the board would be required 
to have professional expertise in travel and international 
travel promotion and marketing, and to broadly represent all 
regions of the United States. No member of the board would be 
considered a Federal employee by virtue of his or her service 
on the board.
  The board would appoint a President and other officers. No 
political test or qualification shall be used in personnel 
actions with respect to officers or employees of the 
Corporation. The Corporation would be prohibited from 
contributing to or otherwise supporting any political party or 
candidate for elective public office.
  The Committee further intends that the Corporation not engage 
in activities to directly or indirectly influence funding 
legislation.
  The Corporation would be required to develop and implement a 
plan to: (1) provide information to travelers, tour operators, 
and other international travel stakeholders, including 
materials provided by the Federal government concerning entry 
requirements and other information that would allow travelers 
to better navigate the process of entering the United States; 
(2) counter and correct international misperceptions regarding 
U.S. travel policy; (3) maximize the economic and diplomatic 
benefits of travel to America through promotional activities; 
(4) ensure that international travel benefits all 50 states and 
the District of Columbia, including areas not traditionally 
visited by international travelers; and (5) prioritize the use 
of Corporation resources towards countries and potential 
travelers that are most likely to travel to America. In order 
to carry out its mission, the Corporation would be empowered to 
contract with public and private entities, hire or accept 
voluntary services of consultants and experts, and to take such 
other actions as may be necessary. Promotional expenditures of 
more than $25,000,000 would need to be authorized by a vote of 
at least two-thirds of the board at a meeting at which eight of 
more members are present.
  Meetings of the board would have to be open to the public 
with the limited exception that portions of a meeting may be 
closed for the period of time necessary to preserve the 
confidentiality of commercial or financial information, to 
discuss personnel matters, or to discuss legal matters. An 
independent accounting firm would have to conduct an annual 
audit of the Corporation's operations, and the Corporation 
would be required to provide the Comptroller General full and 
complete access to its books and records.

Section 3. Accountability Measures.

  The section would require the Corporation's board to 
establish annual objectives for the Corporation subject to 
approval by the Secretary of Commerce and establish a marketing 
plan for each fiscal year. It also would be required to submit 
an annual budget to the Secretary with an explanation of any 
expenditure in excess of $5 million, which would be made 
available to the public. The Corporation would submit an annual 
report to the Secretary of Commerce for transmittal to Congress 
detailing its operations, activities, financial conditions, and 
accomplishments as well as an objective and quantifiable 
measurement of the Corporation's progress on an objective-by-
objective basis and an explanation of the reason for any 
failure to achieve an objective established by the board and 
making appropriate recommendations.

Section 4. Matching Public and Private Funding.

  The section would establish a fund in the Treasury known as 
the Travel Promotion Fund (Fund). For FY 2008, the Corporation 
would be permitted to borrow from the Treasury beginning on 
October 1, 2007, up to $10 million to cover its initial 
expenses and activities under the Act. The borrowed funds would 
have to be repaid with interest by the Corporation before 
October 1, 2012. Subsequently, the Secretary of Treasury would 
transfer not more than $100,000,000 in fees collected pursuant 
to section 5 of the Act to the Fund. Based on the amount of 
private industry contributions raised by the Corporation, the 
Secretary of the Treasury could distribute to the Corporation 
matching moneys from the Fund. At least 20 percent of the 
private-sector contributions would have to be in cash and 
remaining contributions may be in-kind contributions such as 
television advertising time, advertisement space, or services 
calculated at the fair market value of such goods or services. 
The Corporation would have the right to refuse any contribution 
that is not useful or is inappropriate. For FY 2009, the 
Corporation would provide matching funds from non-Federal 
sources equal to 50 percent of the amount received from the 
government. After FY 2009, the Corporation would provide 
matching funds from non-Federal sources equal to 100 percent of 
the amount received from the government. To the extent that 
industry contributions entitle the Corporation to more matching 
money than is available in the Fund in a given year, the value 
of contributions would be carried forward for matching purposes 
in subsequent years.

Section 5. Electronic Travel Authorization System.

  The section would amend the Immigration and Nationality Act 
to authorize the Secretary of Homeland Security, in 
consultation with the Secretary of State, to develop and 
implement a fully automated electronic travel authorization 
system to collect such basic biographical information as the 
Secretary of Homeland Security deems necessary to determine in 
advance the eligibility of a foreign traveler to enter the 
United States under the visa waiver program. The section 
further would authorize the Secretary of Homeland Security to 
charge users a fee to use the electronic travel authorization 
system. The fee would be used to cover the costs of 
administering the system and also include an assessment of no 
more than $10 per user that would be transferred to the Fund. 
The Secretary of Homeland Security, in consultation with the 
Secretary of State, would prescribe regulations that provide 
the period, not to exceed three years, during which a 
determination of eligibility under the program would be valid. 
The section would prohibit any judicial review of eligibility 
determinations and require a report to Congress regarding the 
implementation of the system. The section would also authorize 
the appropriation of funds necessary to establish the 
electronic travel authorization system.

Section 6. Assessment Authority.

  The section would authorize the Corporation to impose an 
annual assessment under specific conditions on certain sectors 
of the private travel industry in the United States, other than 
higher education, passenger air transportation business, and 
small businesses. The initial assessment would be capped, in 
the aggregate, at $20 million. Prior to initiating an 
assessment, the Corporation would submit the proposed 
assessment to the members of the industry impacted by the 
referendum, and the assessment would have to be approved by a 
majority of those members. In conducting the referendum, the 
Corporation would be required to provide written or electronic 
notice not less than 60 days before the date of the referendum, 
describe the assessment, and determine the results of the 
referendum based on a voting structure weighted according to 
each business entity's relative share of the aggregate annual 
U.S. international travel and tourism revenue per business 
entity, treating all related entities as a single entity. The 
Committee intends that the Corporation work with the DOC to 
designate discrete sectors of the travel and tourism industry 
as ``business entities'' for purpose of the referendum and to 
use Federal government revenue estimates to assess the 
aggregate annual U.S. international travel and tourism revenue 
for each business entity. The intent of the weighted voting 
structure is to allow businesses to influence the referendum in 
a manner directly proportionate to the percent that they would 
contribute to the related assessment. Business sectors with 
greater international travel and tourism revenues would receive 
greater weight in voting in proportion to the greater financial 
burden they would contribute. The Committee further intends 
that the Corporation would be responsible for organizing and 
managing the process for notifying and polling the industry 
members subject to an assessment. Only those industry members 
who have been contacted and afforded the opportunity to 
participate in the referendum would be subject to the 
assessment. The Corporation would establish a means of 
collecting the assessment and would be authorized to bring suit 
in Federal court to compel compliance with a properly 
authorized assessment. Pending disbursement of the funds 
assessed, the Corporation would be allowed to invest the funds 
in an interest-bearing account.

Section 7. Under Secretary of Commerce for Travel Promotion.

  The section would establish the Office of Travel Promotion in 
the Department of Commerce headed by the Under Secretary of 
Travel Promotion. The Under Secretary would be a citizen of the 
United States and have experience in a field directly related 
to the promotion of travel in the United States. The Under 
Secretary would serve as liaison to the Corporation, support 
and develop programs to increase the number of international 
visitors to the United States, work with the Corporation and 
the Secretaries of State and Homeland Security to ensure that 
international visitors are processed efficiently and in a 
respectful manner, supervise activities of the OTTI, support 
State, regional, and private sector initiatives to promote 
travel to and within the United States, and work to enhance the 
entry and departure experience for international visitors. 
Within a year after the date of enactment, the Under Secretary 
would transmit a report to Congress describing the Under 
Secretary's work with the State Department and DHS to ensure 
that international visitors are processed efficiently.

Section 8. Research Program.

  The section would amend the International Travel Act of 1916 
and require OTTI to expand its research and development 
activities in support of promoting international travel to the 
United States, including expanding access to official Mexican 
travel surveys data, revising the Commerce Department's Survey 
of International Travelers, developing estimates of 
international travel exports on a State-by-State basis, and 
evaluating the success of the Corporation in achieving the 
objective set forth in the Act. It would also authorize such 
sums as would be necessary to carry out this section.

Section 9. Model Ports-of-Entry.

  The section would direct the Secretary of Homeland Security 
to establish a model ports-of-entry program for the purpose of 
providing a more efficient and welcoming international arrival 
process and to implement the program initially at the 20 U.S. 
international airports that have the highest number of foreign 
visitors arriving annually as determined by the most recent 
data collected by the CBP available on date of enactment. The 
program would include enhanced queue management, assistance for 
foreign visitors once they have been admitted to the United 
States, and instructional videos. The section would further 
direct the Secretary of Homeland Security, subject to 
appropriations, to employ not fewer than an additional 200 CBP 
officers not later than the end of FY 2008. The officers would 
be used to address staff shortages at the 20 U.S. international 
airports that have the highest number of foreign visitors 
arriving annually.

Section 10. Definitions.

  The section would define the terms ``Board'', 
``Corporation'', ``fund'', and ``Secretary'' as used in the 
Act.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                           UNITED STATES CODE

                                TITLE 5

                          PART III--EMPLOYEES

                     SUBPART D. PAY AND ALLOWANCES

                   CHAPTER 53. PAY RATES AND SYSTEMS

Sec. 5313. Positions at level II

  Level II of the Executive Schedule applies to the following 
positions, for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Deputy Secretary of Defense.
          Deputy Secretary of State.
          Deputy Secretary of State for Management and 
        Resources.
          Administrator, Agency for International Development.
          Administrator of the National Aeronautics and Space 
        Administration.
          Deputy Secretary of Veterans Affairs.
          Deputy Secretary of Homeland Security.
          Deputy Secretary of the Treasury.
          Deputy Secretary of Transportation.
          Chairman, Nuclear Regulatory Commission.
          Chairman, Council of Economic Advisers.
          Director of the Office of Science and Technology.
          Director of Central Intelligence.
          Secretary of the Air Force.
          Secretary of the Army.
          Secretary of the Navy.
          Administrator, Federal Aviation Administration.
          Director of the National Science Foundation.
          Deputy Attorney General.
          Deputy Secretary of Energy.
          Deputy Secretary of Agriculture.
          Director of the Office of Personnel Management.
          Administrator, Federal Highway Administration.
          Administrator of the Environmental Protection Agency.
          Under Secretary of Defense for Acquisition, 
        Technology, and Logistics.
          Deputy Secretary of Labor.
          Deputy Director of the Office of Management and 
        Budget.
          Independent Members, Thrift Depositor Protection 
        Oversight Board.
          Deputy Secretary of Health and Human Services.
          Deputy Secretary of the Interior.
          Deputy Secretary of Education.
          Deputy Secretary of Housing and Urban Development.
          Deputy Director for Management, Office of Management 
        and Budget.
          Director of the Office of Federal Housing Enterprise 
        Oversight, Department of Housing and Urban Development.
          Deputy Commissioner of Social Security, Social 
        Security Administration.
          Administrator of the Community Development Financial 
        Institutions Fund.
          Deputy Director of National Drug Control Policy.
          Members, Board of Governors of the Federal Reserve 
        System.
          The Under Secretary of Transportation for Security.
          Under Secretary of Transportation for Policy.
          Chief Executive Officer, Millennium Challenge 
        Corporation.
          Principal Deputy Director of National Intelligence.
          Director of the National Counterterrorism Center.
          Director of the National Counter Proliferation 
        Center.
          Administrator of the Federal Emergency Management 
        Agency.
          The Under Secretary of Commerce for Travel Promotion.

                    Immigration and Nationality Act

                            [8 U.S.C. 1187]

Sec. 1187. Visa waiver program for certain visitors

  (a) Establishment of Program.--The Attorney General and the 
Secretary of State are authorized to establish a program 
(hereinafter in this section referred to as the ``program'') 
under which the requirement of paragraph (7)(B)(i)(II) of 
section 212(a) may be waived by the Attorney General, in 
consultation with the Secretary of State and in accordance with 
this section, in the case of an alien who meets the following 
requirements:
          (1) Seeking entry as tourist for 90 days or less.--
        The alien is applying for admission during the program 
        as a nonimmigrant visitor (described in section 
        101(a)(15)(B)) for a period not exceeding 90 days.
          (2) National of program country.--The alien is a 
        national of, and presents a passport issued by, a 
        country which--
                  (A) extends (or agrees to extend), either on 
                its own or in conjunction with one or more 
                other countries that are described in 
                subparagraph (B) and that have established with 
                it a common area for immigration admissions, 
                reciprocal privileges to citizens and nationals 
                of the United States, and
                  (B) is designated as a [pilot] program 
                country under subsection (c).
          (3) Machine readable passport.--
                  (A) In general. Except as provided in 
                subparagraph (B), on or after October 1, 2003, 
                the alien at the time of application for 
                admission is in possession of a valid unexpired 
                machine-readable passport that satisfies the 
                internationally accepted standard for machine 
                readability.
                  (B) Limited waiver authority. For the period 
                beginning October 1, 2003, and ending September 
                30, 2007, the Secretary of State may waive the 
                requirement of subparagraph (A) with respect to 
                nationals of a program country (as designated 
                under subsection (c)), if the Secretary of 
                State finds that the program country--
                          (i) is making progress toward 
                        ensuring that passports meeting the 
                        requirement of subparagraph (A) are 
                        generally available to its nationals; 
                        and
                          (ii) has taken appropriate measures 
                        to protect against misuse of passports 
                        the country has issued that do not meet 
                        the requirement of subparagraph (A).
          (4) Executes immigration forms.--The alien before the 
        time of such admission completes such immigration form 
        as the Attorney General shall establish.
          (5) Entry into the united states.--If arriving by sea 
        or air, the alien arrives at the port of entry into the 
        United States on a carrier, including any carrier 
        conducting operations under part 135 of title 14, Code 
        of Federal Regulations, or a noncommercial aircraft 
        that is owned or operated by a domestic corporation 
        conducting operations under part 91 of title 14, Code 
        of Federal Regulations which has entered into an 
        agreement with the Attorney General pursuant to 
        subsection (e). The Attorney General is authorized to 
        require a carrier conducting operations under part 135 
        of title 14, Code of Federal Regulations, or a domestic 
        corporation conducting operations under part 91 of that 
        title, to give suitable and proper bond, in such 
        reasonable amount and containing such conditions as the 
        Attorney General may deem sufficient to ensure 
        compliance with the indemnification requirements of 
        this section, as a term of such an agreement.
          (6) Not a safety threat.--The alien has been 
        determined not to represent a threat to the welfare, 
        health, safety, or security of the United States.
          (7) No previous violation.--If the alien previously 
        was admitted without a visa under this section, the 
        alien must not have failed to comply with the 
        conditions of any previous admission as such a 
        nonimmigrant.
          (8) Round-trip ticket.--The alien is in possession of 
        a round-trip transportation ticket (unless this 
        requirement is waived by the Attorney General under 
        regulations or the alien is arriving at the port of 
        entry on an aircraft operated under part 135 of title 
        14, Code of Federal Regulations, or a noncommercial 
        aircraft that is owned or operated by a domestic 
        corporation conducting operations under part 91 of 
        title 14, Code of Federal Regulations).
          (9) Automated system check.--The identity of the 
        alien has been checked using an automated electronic 
        database containing information about the 
        inadmissibility of aliens to uncover any grounds on 
        which the alien may be inadmissible to the United 
        States, and no such ground has been found.
  Operators of aircraft under part 135 of title 14, Code of 
Federal Regulations, or operators of noncommercial aircraft 
that are owned or operated by a domestic corporation conducting 
operations under part 91 of title 14, Code of Federal 
Regulations, carrying any alien passenger who will apply for 
admission under this section shall furnish such information as 
the Attorney General by regulation shall prescribe as necessary 
for the identification of any alien passenger being transported 
and for the enforcement of the immigration laws. Such 
information shall be electronically transmitted not less than 
one hour prior to arrival at the port of entry for purposes of 
checking for inadmissibility using the automated electronic 
database.
  (b) Waiver of rights.--An alien may not be provided a waiver 
under the program unless the alien has waived any right--
          (1) to review or appeal under this Act of an 
        immigration officer's determination as to the 
        admissibility of the alien at the port of entry into 
        the United States, or
          (2) to contest, other than on the basis of an 
        application for asylum, any action for removal of the 
        alien.
  (c) Designation of Program Countries.--
          (1) In general.--The Attorney General, in 
        consultation with the Secretary of State, ``may 
        designate'' any country as a program country if it 
        meets the requirements of paragraph (2).
          (2) Qualifications.--Except as provided in subsection 
        (f), a country may not be designated as a program 
        country unless the following requirements are met:
                  (A) Low nonimmigrant visa refusal rate.--
                Either--
                          (i) the average number of refusals of 
                        nonimmigrant visitor visas for 
                        nationals of that country during--
                                  (I) the two previous full 
                                fiscal years was less than 2.0 
                                percent of the total number of 
                                nonimmigrant visitor visas for 
                                nationals of that country which 
                                were granted or refused during 
                                those years; and
                                  (II) either of such two 
                                previous full fiscal years was 
                                less than 2.5 percent of the 
                                total number of nonimmigrant 
                                visitor visas for nationals of 
                                that country which were granted 
                                or refused during that year; or
                          (ii) such refusal rate for nationals 
                        of that country during the previous 
                        full fiscal year was less than 3.0 
                        percent.
                  (B) Machine readable passport program.--
                          (i) In general.--Subject to clause 
                        (ii), the government of the country 
                        certifies that it issues to its 
                        citizens machine-readable passports 
                        that satisfy the internationally 
                        accepted standard for machine 
                        readability.
                          (ii) Deadline for compliance for 
                        certain countries.--In the case of a 
                        country designated as a program country 
                        under this subsection prior to May 1, 
                        2000, as a condition on the 
                        continuation of that designation, the 
                        country--
                                  (I) shall certify, not later 
                                than October 1, 2000, that it 
                                has a program to issue machine-
                                readable passports to its 
                                citizens not later than October 
                                1, 2003; and
                                  (II) shall satisfy the 
                                requirement of clause (i) not 
                                later than October 1, 2003.
                  (C) Law enforcement and security interests.--
                The Attorney General, in consultation with the 
                Secretary of State--
                          (i) evaluates the effect that the 
                        country's designation would have on the 
                        law enforcement and security interests 
                        of the United States (including the 
                        interest in enforcement of the 
                        immigration laws of the United States 
                        and the existence and effectiveness of 
                        its agreements and procedures for 
                        extraditing to the United States 
                        individuals, including its own 
                        nationals, who commit crimes that 
                        violate United States law);
                          (ii) determines that such interests 
                        would not be compromised by the 
                        designation of the country; and
                          (iii) submits a written report to the 
                        Committee on the Judiciary and the 
                        Committee on International Relations of 
                        the House of Representatives and the 
                        Committee on the Judiciary and the 
                        Committee on Foreign Relations of the 
                        Senate regarding the country's 
                        qualification for designation that 
                        includes an explanation of such 
                        determination.
                  (D) Reporting passport thefts.--The 
                government of the country certifies that it 
                reports to the United States Government on a 
                timely basis the theft of blank passports 
                issued by that country.
          (3) Continuing and subsequent qualifications.--For 
        each fiscal year after the initial period--
                  (A) Continuing qualification.--In the case of 
                a country which was a program country in the 
                previous fiscal year, a country may not be 
                designated as a program country unless the sum 
                of--
                          (i) the total of the number of 
                        nationals of that country who were 
                        denied admission at the time of arrival 
                        or withdrew their application for 
                        admission during such previous fiscal 
                        year as a nonimmigrant visitor, and
                          (ii) the total number of nationals of 
                        that country who were admitted as 
                        nonimmigrant visitors during such 
                        previous fiscal year and who violated 
                        the terms of such admission, was less 
                        than 2 percent of the total number of 
                        nationals of that country who applied 
                        for admission as nonimmigrant visitors 
                        during such previous fiscal year.
                  (B) New countries.--In the case of another 
                country, the country may not be designated as a 
                program country unless the following 
                requirements are met:
                          (i) Low nonimmigrant visa refusal 
                        rate in previous 2-year period.--The 
                        average number of refusals of 
                        nonimmigrant visitor visas for 
                        nationals of that country during the 
                        two previous full fiscal years was less 
                        than 2 percent of the total number of 
                        nonimmigrant visitor visas for 
                        nationals of that country which were 
                        granted or refused during those years.
                          (ii) Low nonimmigrant visa refusal 
                        rate in each of the 2 previous years.--
                        The average number of refusals of 
                        nonimmigrant visitor visas for 
                        nationals of that country during either 
                        of such two previous full fiscal years 
                        was less than 2.5 percent of the total 
                        number of nonimmigrant visitor visas 
                        for nationals of that country which 
                        were granted or refused during that 
                        year.
          (4) Initial period. For purposes of paragraphs (2) 
        and (3), the term ``initial period'' means the period 
        beginning at the end of the 30-day period described in 
        subsection (b)(1) and ending on the last day of the 
        first fiscal year which begins after such 30-day 
        period.
          (5) Written reports on continuing qualification; 
        designation terminations.--
                  (A) Periodic evaluations.--
                          (i) In general.--The Attorney 
                        General, in consultation with the 
                        Secretary of State, periodically (but 
                        not less than once every 2 years)--
                                  (I) shall evaluate the effect 
                                of each program country's 
                                continued designation on the 
                                law enforcement and security 
                                interests of the United States 
                                (including the interest in 
                                enforcement of the immigration 
                                laws of the United States and 
                                the existence and effectiveness 
                                of its agreements and 
                                procedures for extraditing to 
                                the United States individuals, 
                                including its own nationals, 
                                who commit crimes that violate 
                                United States law);
                                  (II) shall determine, based 
                                upon the evaluation in 
                                subclause (I), whether any such 
                                designation ought to be 
                                continued or terminated under 
                                subsection (d); and
                                  (III) shall submit a written 
                                report to the Committee on the 
                                Judiciary and the Committee on 
                                International Relations of the 
                                House of Representatives and 
                                the Committee on the Judiciary 
                                and the Committee on Foreign 
                                Relations of the Senate 
                                regarding the continuation or 
                                termination of the country's 
                                designation that includes an 
                                explanation of such 
                                determination and the effects 
                                described in subclause (I).
                          (ii) Effective date.--A termination 
                        of the designation of a country under 
                        this subparagraph shall take effect on 
                        the date determined by the Attorney 
                        General, in consultation with the 
                        Secretary of State.
                          (iii) Redesignation.--In the case of 
                        a termination under this subparagraph, 
                        the Attorney General shall redesignate 
                        the country as a program country, 
                        without regard to subsection (f) or 
                        paragraph (2) or (3), when the Attorney 
                        General, in consultation with the 
                        Secretary of State, determines that all 
                        causes of the termination have been 
                        eliminated.
                  (B) Emergency termination.--
                          (i) In general.--In the case of a 
                        program country in which an emergency 
                        occurs that the Attorney General, in 
                        consultation with the Secretary of 
                        State, determines threatens the law 
                        enforcement or security interests of 
                        the United States (including the 
                        interest in enforcement of the 
                        immigration laws of the United States), 
                        the Attorney General shall immediately 
                        terminate the designation of the 
                        country as a program country.
                          (ii) Definition.--For purposes of 
                        clause (i), the term ``emergency'' 
                        means--
                                  (I) the overthrow of a 
                                democratically elected 
                                government;
                                  (II) war (including 
                                undeclared war, civil war, or 
                                other military activity) on the 
                                territory of the program 
                                country;
                                  (III) a severe breakdown in 
                                law and order affecting a 
                                significant portion of the 
                                program country's territory;
                                  (IV) a severe economic 
                                collapse in the program 
                                country; or
                                  (V) any other extraordinary 
                                event in the program country 
                                that threatens the law 
                                enforcement or security 
                                interests of the United States 
                                (including the interest in 
                                enforcement of the immigration 
                                laws of the United States) and 
                                where the country's 
                                participation in the program 
                                could contribute to that 
                                threat.
                          (iii) Redesignation.--The Attorney 
                        General may redesignate the country as 
                        a program country, without regard to 
                        subsection (f) or paragraph (2) or (3), 
                        when the Attorney General, in 
                        consultation with the Secretary of 
                        State, determines that--
                                  (I) at least 6 months have 
                                elapsed since the effective 
                                date of the termination;
                                  (II) the emergency that 
                                caused the termination has 
                                ended; and
                                  (III) the average number of 
                                refusals of nonimmigrant 
                                visitor visas for nationals of 
                                that country during the period 
                                of termination under this 
                                subparagraph was less than 3.0 
                                percent of the total number of 
                                nonimmigrant visitor visas for 
                                nationals of that country which 
                                were granted or refused during 
                                such period.
                  (C) Treatment of nationals after 
                termination.--For purposes of this paragraph--
                          (i) nationals of a country whose 
                        designation is terminated under 
                        subparagraph (A) or (B) shall remain 
                        eligible for a waiver under subsection 
                        (a) until the effective date of such 
                        termination; and
                          (ii) a waiver under this section that 
                        is provided to such a national for a 
                        period described in subsection (a)(1) 
                        shall not, by such termination, be 
                        deemed to have been rescinded or 
                        otherwise rendered invalid, if the 
                        waiver is granted prior to such 
                        termination.
          (6) Computation of visa refusal rates.--For purposes 
        of determining the eligibility of a country to be 
        designated as a program country, the calculation of 
        visa refusal rates shall not include any visa refusals 
        which incorporate any procedures based on, or are 
        otherwise based on, race, sex, or disability, unless 
        otherwise specifically authorized by law or regulation. 
        No court shall have jurisdiction under this paragraph 
        to review any visa refusal, the denial of admission to 
        the United States of any alien by the Attorney General, 
        the Secretary's computation of the visa refusal rate, 
        or the designation or nondesignation of any country.
          (7) Visa waiver information.--
                  (A) In general.--In refusing the application 
                of nationals of a program country for United 
                States visas, or the applications of nationals 
                of a country seeking entry into the visa waiver 
                program, a consular officer shall not knowingly 
                or intentionally classify the refusal of the 
                visa under a category that is not included in 
                the calculation of the visa refusal rate only 
                so that the percentage of that country's visa 
                refusals is less than the percentage limitation 
                applicable to qualification for participation 
                in the visa waiver program.
                  (B) Reporting requirement.--On May 1 of each 
                year, for each country under consideration for 
                inclusion in the visa waiver program, the 
                Secretary of State shall provide to the 
                appropriate congressional committees--
                          (i) the total number of nationals of 
                        that country that applied for United 
                        States visas in that country during the 
                        previous calendar year;
                          (ii) the total number of such 
                        nationals who received United States 
                        visas during the previous calendar 
                        year;
                          (iii) the total number of such 
                        nationals who were refused United 
                        States visas during the previous 
                        calendar year;
                          (iv) the total number of such 
                        nationals who were refused United 
                        States visas during the previous 
                        calendar year under each provision of 
                        this Act under which the visas were 
                        refused; and
                          (v) the number of such nationals that 
                        were refused under section 214(b) as a 
                        percentage of the visas that were 
                        issued to such nationals.
                  (C) Certification.--Not later than May 1 of 
                each year, the United States chief of mission, 
                acting or permanent, to each country under 
                consideration for inclusion in the visa waiver 
                program shall certify to the appropriate 
                congressional committees that the information 
                described in subparagraph (B) is accurate and 
                provide a copy of that certification to those 
                committees.
                  (D) Consideration of countries in the visa 
                waiver program.--Upon notification to the 
                Attorney General that a country is under 
                consideration for inclusion in the visa waiver 
                program, the Secretary of State shall provide 
                all of the information described in 
                subparagraph (B) to the Attorney General.
                  (E) Definition.--In this paragraph, the term 
                ``appropriate congressional committees'' means 
                the Committee on the Judiciary and the 
                Committee on Foreign Relations of the Senate 
                and the Committee on the Judiciary and the 
                Committee on International Relations of the 
                House of Representatives.
  (d) Authority.--Notwithstanding any other provision of this 
section, the Attorney General, in consultation with the 
Secretary of State, may for any reason (including national 
security) refrain from waiving the visa requirement in respect 
to nationals of any country which may otherwise qualify for 
designation or may, at any time, rescind any waiver or 
designation previously granted under this section.
  (e) Carrier Agreements.--
          (1) In general.--The agreement referred to in 
        subsection (a)(4) is an agreement between a carrier 
        (including any carrier conducting operations under part 
        135 of title 14, Code of Federal Regulations) or a 
        domestic corporation conducting operations under part 
        91 of that title and the Attorney General under which 
        the carrier (including any carrier conducting 
        operations under part 135 of title 14, Code of Federal 
        Regulations) or a domestic corporation conducting 
        operations under part 91 of that title agrees, in 
        consideration of the waiver of the visa requirement 
        with respect to a nonimmigrant visitor under the 
        program--
                  (A) to indemnify the United States against 
                any costs for the transportation of the alien 
                from the United States if the visitor is 
                refused admission to the United States or 
                remains in the United States unlawfully after 
                the 90-day period described in subsection 
                (a)(1)(A);
                  (B) to submit daily to immigration officers 
                any immigration forms received with respect to 
                nonimmigrant visitors provided a waiver under 
                the program;
                  (C) to be subject to the imposition of fines 
                resulting from the transporting into the United 
                States of a national of a designated country 
                without a passport pursuant to regulations 
                promulgated by the Attorney General; and
                  (D) to collect, provide, and share passenger 
                data as required under subsection (h)(1)(B).
          (2) Termination of agreements.--The Attorney General 
        may terminate an agreement under paragraph (1) with 
        five days' notice to the carrier (including any carrier 
        conducting operations under part 135 of title 14, Code 
        of Federal Regulations) or a domestic corporation 
        conducting operations under part 91 of that title for 
        the failure by a carrier (including any carrier 
        conducting operations under part 135 of title 14, Code 
        of Federal Regulations) or a domestic corporation 
        conducting operations under part 91 of that title to 
        meet the terms of such agreement.
          (3) Business aircraft requirements.--
                  (A) In general.--For purposes of this 
                section, a domestic corporation conducting 
                operations under part 91 of title 14, Code of 
                Federal Regulations that owns or operates a 
                noncommercial aircraft is a corporation that is 
                organized under the laws of any of the States 
                of the United States or the District of 
                Columbia and is accredited by or a member of a 
                national organization that sets business 
                aviation standards. The Attorney General shall 
                prescribe by regulation the provision of such 
                information as the Attorney General deems 
                necessary to identify the domestic corporation, 
                its officers, employees, shareholders, its 
                place of business, and its business activities.
                  (B) Collections.--In addition to any other 
                fee authorized by law, the Attorney General is 
                authorized to charge and collect, on a periodic 
                basis, an amount from each domestic corporation 
                conducting operations under part 91 of title 
                14, Code of Federal Regulations, for 
                nonimmigrant visa waiver admissions on 
                noncommercial aircraft owned or operated by 
                such domestic corporation equal to the total 
                amount of fees assessed for issuance of 
                nonimmigrant visa waiver arrival/departure 
                forms at land border ports of entry. All fees 
                collected under this paragraph shall be 
                deposited into the Immigration User Fee Account 
                established under section 286(h).
  (f) Duration and Termination of Designation.--
          (1) In general.--
                  (A) Determination and notification of 
                disqualification rate.--Upon determination by 
                the Attorney General that a 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 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 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 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 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 
                program country who were--
                          (i) denied admission at the time of 
                        arrival 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.
          (5) Failure to report passport thefts.--If the 
        Attorney General and the Secretary of State jointly 
        determine that the program country is not reporting the 
        theft of blank passports, as required by subsection 
        (c)(2)(D), the Attorney General shall terminate the 
        designation of the country as a program country.
  (g) Visa Application Sole Method To Dispute Denial of Waiver 
Based on a Ground of Inadmissibility.--In the case of an alien 
denied a waiver under the program by reason of a ground of 
inadmissibility described in section 212(a) that is discovered 
at the time of the alien's application for the waiver or 
through the use of an automated electronic database required 
under subsection (a)(9), the alien may apply for a visa at an 
appropriate consular office outside the United States. There 
shall be no other means of administrative or judicial review of 
such a denial, and no court or person otherwise shall have 
jurisdiction to consider any claim attacking the validity of 
such a denial.
  (h) Use of Information Technology Systems.--
          (1) Automated entry-exit control system.--
                  (A) System.--Not later than October 1, 2001, 
                the Attorney General shall develop and 
                implement a fully automated entry and exit 
                control system that will collect a record of 
                arrival and departure for every alien who 
                arrives and departs by sea or air at a port of 
                entry into the United States and is provided a 
                waiver under the program.
                  (B) Requirements.--The system under 
                subparagraph (A) shall satisfy the following 
                requirements:
                          (i) Data collection by carriers.--Not 
                        later than October 1, 2001, the records 
                        of arrival and departure described in 
                        subparagraph (A) shall be based, to the 
                        maximum extent practicable, on 
                        passenger data collected and 
                        electronically transmitted to the 
                        automated entry and exit control system 
                        by each carrier that has an agreement 
                        under subsection (a)(4).
                          (ii) Data provision by carriers.--Not 
                        later than October 1, 2002, no waiver 
                        may be provided under this section to 
                        an alien arriving by sea or air at a 
                        port of entry into the United States on 
                        a carrier unless the carrier is 
                        electronically transmitting to the 
                        automated entry and exit control system 
                        passenger data determined by the 
                        Attorney General to be sufficient to 
                        permit the Attorney General to carry 
                        out this paragraph.
                          (iii) Calculation.--The system shall 
                        contain sufficient data to permit the 
                        Attorney General to calculate, for each 
                        program country and each fiscal year, 
                        the portion of nationals of that 
                        country who are described in 
                        subparagraph (A) and for whom no record 
                        of departure exists, expressed as a 
                        percentage of the total number of such 
                        nationals who are so described.
                  (C) Reporting.--
                          (i) Percentage of nationals lacking 
                        departure record.--As part of the 
                        annual report required to be submitted 
                        under section 110(e)(1) of the Illegal 
                        Immigration Reform and Immigrant 
                        Responsibility Act of 1996, the 
                        Attorney General shall include a 
                        section containing the calculation 
                        described in subparagraph (B)(iii) for 
                        each program country for the previous 
                        fiscal year, together with an analysis 
                        of that information.
                          (ii) System effectiveness.--Not later 
                        than December 31, 2004, the Attorney 
                        General shall submit a written report 
                        to the Committee on the Judiciary of 
                        the United States House of 
                        Representatives and of the Senate 
                        containing the following:
                                  (I) The conclusions of the 
                                Attorney General regarding the 
                                effectiveness of the automated 
                                entry and exit control system 
                                to be developed and implemented 
                                under this paragraph.
                                  (II) The recommendations of 
                                the Attorney General regarding 
                                the use of the calculation 
                                described in subparagraph 
                                (B)(iii) as a basis for 
                                evaluating whether to terminate 
                                or continue the designation of 
                                a country as a program country. 
                                The report required by this 
                                clause may be combined with the 
                                annual report required to be 
                                submitted on that date under 
                                section 110(e)(1) of the 
                                Illegal Immigration Reform and 
                                Immigrant Responsibility Act of 
                                1996.
          (2) Automated data sharing system.--
                  (A) System.--The Attorney General and the 
                Secretary of State shall develop and implement 
                an automated data sharing system that will 
                permit them to share data in electronic form 
                from their respective records systems regarding 
                the admissibility of aliens who are nationals 
                of a program country.
                  (B) Requirements.--The system under 
                subparagraph (A) shall satisfy the following 
                requirements:
                          (i) Supplying information to 
                        immigration officers conducting 
                        inspections at ports of entry.--Not 
                        later than October 1, 2002, the system 
                        shall enable immigration officers 
                        conducting inspections at ports of 
                        entry under section 235 to obtain from 
                        the system, with respect to aliens 
                        seeking a waiver under the program--
                                  (I) any photograph of the 
                                alien that may be contained in 
                                the records of the Department 
                                of State or the Service; and
                                  (II) information on whether 
                                the alien has ever been 
                                determined to be ineligible to 
                                receive a visa or ineligible to 
                                be admitted to the United 
                                States.
                          (ii) Supplying photographs of 
                        inadmissible aliens.--The system shall 
                        permit the Attorney General 
                        electronically to obtain any photograph 
                        contained in the records of the 
                        Secretary of State pertaining to an 
                        alien who is a national of a program 
                        country and has been determined to be 
                        ineligible to receive a visa.
                          (iii) Maintaining records on 
                        applications for admission.--The system 
                        shall maintain, for a minimum of 10 
                        years, information about each 
                        application for admission made by an 
                        alien seeking a waiver under the 
                        program, including the following:
                                  (I) The name or Service 
                                identification number of each 
                                immigration officer conducting 
                                the inspection of the alien at 
                                the port of entry.
                                  (II) Any information 
                                described in clause (i) that is 
                                obtained from the system by any 
                                such officer.
                                  (III) The results of the 
                                application.
          (3) Electronic travel authorization system.--
                  (A) System.--The Secretary of Homeland 
                Security, in consultation with the Secretary of 
                State, is authorized to develop and implement a 
                fully automated electronic travel authorization 
                system to collect such basic biographical 
                information as the Secretary of Homeland 
                Security determines to be necessary to 
                determine, in advance of travel, the 
                eligibility of an alien to travel to the United 
                States under the visa waiver program.
                  (B) Fees.--The Secretary of Homeland Security 
                may charge a fee for the use of the system, 
                which shall be--
                          (i) set at a level that will ensure 
                        recovery of the full costs of providing 
                        and administering the system;
                          (ii) available to pay the costs 
                        incurred to administer the system; and
                          (iii) include an amount, initially 
                        not more than $10, for transfer to the 
                        Travel Promotion Fund established by 
                        section 4 of the Travel Promotion Act 
                        of 2007 necessary to ensure that the 
                        Corporation for Travel Promotion 
                        established by section 2 of that Act is 
                        fully funded.
                  (C) Validity.--
                          (i) Period.--The Secretary of 
                        Homeland Security, in consultation with 
                        the Secretary of State shall prescribe 
                        regulations that provide for a period, 
                        not to exceed 3 years, during which a 
                        determination of eligibility to travel 
                        under the program will be valid. 
                        Notwithstanding any other provision 
                        under this section, the Secretary of 
                        Homeland Security may revoke any such 
                        determination at any time and for any 
                        reason.
                          (ii) Limitation.--A determination 
                        that an alien is eligible to travel to 
                        the United States under the visa waiver 
                        program is not a determination that the 
                        alien is admissible to the United 
                        States.
                          (iii) Judicial review.--
                        Notwithstanding any other provision of 
                        law, no court shall have jurisdiction 
                        to review an eligibility determination 
                        under the system.
                  (D) Report.--Not later than 60 days before 
                publishing notice regarding the implementation 
                of the system in the Federal Register, the 
                Secretary of Homeland Security shall submit a 
                report regarding the implementation of the 
                system to the Congress.

                    International Travel Act of 1961

                            TITLE II--DUTIES

SEC. 201. POWERS AND DUTIES OF SECRETARY OF COMMERCE

                            [22 U.S.C. 2122]

  In order to carry out the national tourism policy established 
in section 101(b) and by the United States National Tourism 
Organization Act of 1996, the Secretary of [Commerce (hereafter 
in this Act referred to as the ``Secretary'')] Commerce, acting 
through the Under Secretary for Travel Promotion, shall develop 
and implement a comprehensive plan to perform critical tourism 
functions which, in the determination of the Secretary, are not 
being carried out by the United States National Tourism 
Organization or other private sector entities or State 
governments. Such plan may include programs to--
          (1) collect and publish comprehensive international 
        travel and tourism statistics and other marketing 
        information;
          (2) design, implement, and publish international 
        travel and tourism forecasting models;
          (3) facilitate the reduction or elimination of 
        barriers to international travel and tourism; and
          (4) work with the United States National Tourism 
        Organization, the Tourism Policy Council, State tourism 
        agencies, and Federal agencies in--
                  (A) coordinating the Federal implementation 
                of a national travel and tourism policy;
                  (B) representing the United States' 
                international travel and tourism interests to 
                foreign governments; and
                  (C) maintaining United States participation 
                in international travel and tourism trade shows 
                and fairs until such activities can be 
                transferred to such Organization and other 
                private sector entities.

SEC. 202. OFFICE OF TRAVEL PROMOTION.

  (a) Office Established.--There is established within the 
Department of Commerce an office to be known as the Office of 
Travel Promotion.
  (b) Under Secretary for Travel Promotion.--
          (1) In general.--The head of the Office shall be the 
        Under Secretary of Commerce for Travel Promotion. The 
        Under Secretary shall be appointed by the President, by 
        and with the advice and consent of the Senate.
          (2) Qualifications.--The Under Secretary shall--
                  (A) be a citizen of the United States; and
                  (B) have experience in a field directly 
                related to the promotion of travel in the 
                United States.
          (3) Limitation on investments.--The Under Secretary 
        may not own stock in, or have a direct or indirect 
        beneficial interest in, a corporation or other 
        enterprise engaged in the travel, transportation, or 
        hospitality business or in a corporation or other 
        enterprise that owns or operates theme park or other 
        entertainment facility.
  (c) Function.--The Under Secretary shall--
          (1) serve as liaison to the Corporation for Travel 
        Promotion established by section 2 of the Travel 
        Promotion Act of 2007 and support and encourage the 
        development of programs to increase the number of 
        international visitors to the United States for 
        business, leisure, educational, medical, exchange, and 
        other purposes;
          (2) work with the Corporation, the Secretary of 
        State, and the Secretary of Homeland Security--
                  (A) to disseminate information more 
                effectively to potential international visitors 
                about documentation and procedures required for 
                admission to the United States as a visitor; 
                and
                  (B) to ensure that arriving international 
                visitors are processed efficiently and in a 
                welcoming and respectful manner;
          (3) support State, regional, and private sector 
        initiatives to promote travel to and within the United 
        States;
          (4) supervise the operations of the Office of Travel 
        and Tourism Industries; and
          (5) enhance the entry and departure experience for 
        international visitors.
  (d) Reports to Congress.--Within a year after the date of 
enactment of the Travel Promotion Act of 2007, and periodically 
thereafter as appropriate, the Under Secretary shall transmit a 
report to the Senate Committee on Commerce, Science, and 
Transportation and the House of Representatives Committee on 
Energy and Commerce describing the Under Secretary's work with 
the Corporation, the Secretary of State, and the Secretary of 
Homeland Security to carry out subsection (c)(2).

SEC. 203. RESEARCH PROGRAM.

  (a) In General.--The Office of Travel and Tourism Industries 
shall expand and continue its research and development 
activities in connection with the promotion of international 
travel to the United States, including--
          (1) expanding access to the official Mexican travel 
        surveys data to provide the States with traveler 
        characteristics and visitation estimates for targeted 
        marketing programs;
          (2) revising the Commerce Department's Survey of 
        International Travelers questionnaire and report 
        formats to accommodate a new survey instrument, 
        expanding the respondent base, improving response 
        rates, and improving market coverage;
          (3) developing estimates of international travel 
        exports (expenditures) on a State-by-State basis to 
        enable each State to compare its comparative position 
        to national totals and other States;
          (4) evaluate the success of the Corporation in 
        achieving its objectives and carrying out the purposes 
        of the Travel Promotion Act of 2007; and
          (5) research to support the annual report required by 
        section 202(d) of this Act.
  (b) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary of Commerce for fiscal years 
2008 through 2012 such sums as may be necessary to carry out 
this section.