[Senate Report 113-234]
[From the U.S. Government Publishing Office]
113th Congress
2d Session SENATE Report
113-234
_______________________________________________________________________
Calendar No. 520
TRAVEL PROMOTION, ENHANCEMENT, AND MODERNIZATION ACT OF 2014
__________
R E P O R T
of the
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 2250
July 31, 2014.--Ordered to be printed
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred thirteenth congress
second session
JOHN D. ROCKEFELLER IV, West Virginia, Chairman
BARBARA BOXER, California JOHN THUNE, South Dakota
BILL NELSON, Florida ROGER F. WICKER, Mississippi
MARIA CANTWELL, Washington ROY BLUNT, Missouri
MARK PRYOR, Arkansas MARCO RUBIO, Florida
CLAIRE McCASKILL, Missouri KELLY AYOTTE, New Hampshire
AMY KLOBUCHAR , Minnesota DEAN HELLER, Nevada
MARK BEGICH, Alaska DANIEL COATS, Indiana
RICHARD BLUMENTHAL, Connecticut TIM SCOTT, South Carolina
BRIAN SCHATZ, Hawaii TED CRUZ, Texas
ED MARKEY, Massachusetts DEB FISCHER, Nebraska
CORY BOOKER, New Jersey RON JOHNSON, Wisconsin
JOHN WALSH, Montana
Ellen Doneski, Staff Director
John Williams, General Counsel
David Schwietert, Republican Staff Director
Nick Rossi, Republican Deputy Staff Director
Rebecca Seidel, Republican General Counsel
Calendar No. 520
113th Congress Report
SENATE
2d Session 113-234
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TRAVEL PROMOTION, ENHANCEMENT, AND MODERNIZATION ACT OF 2014
_______
July 31, 2014.--Ordered to be printed
_______
Mr. Rockefeller, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 2250]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 2250) to extend the Travel
Promotion Act of 2009, and for other purposes, having
considered the same, reports favorably thereon with an
amendment (in the nature of a substitute) and recommends that
the bill (as amended) do pass.
Purpose of the Bill
The purpose of S. 2250, the Travel Promotion, Enhancement,
and Modernization Act of 2014, is to reauthorize through fiscal
year 2020 the Travel Promotion Act of 2009, which established
the public-private Corporation for Travel Promotion to
communicate U.S. entry policies and promote travel to the
United States. The Corporation for Travel Promotion was renamed
Brand USA in November of 2011.
Background and Needs
The U.S. travel and tourism industry is a major component
of the national economy, accounting for over a quarter of the
country's services exports, about 8 percent of exports overall,
and $57 billion in trade surplus.\1\ In 2013, the industry made
up 2.8 percent of gross domestic product, supported 8 million
jobs, tallied $1.51 trillion in total sales,\2\ and generated
$133.9 billion in local, State, and Federal tax revenue.\3\
While domestic travel and tourism make up the dominant share of
the overall industry, global trends and projections make clear
the economic opportunities and need in increasing the country's
international visitors. Globally, the number of international
tourist trips in 1950 was 25 million, rising to over 1 billion
in 2012 and projected to total 1.4 billion in 2020 and 1.8
billion in 2030.\4\ Between 2000 and 2009, total international
travel receipts worldwide grew more than 87 percent.\5\
Emerging economies, in particular, are driving the bulk of the
growth. In 2000, 10 million Chinese traveled internationally;
in 2012, that figure rose to 83 million. International trips
from India are expected to rise to 50 million in 2020 from 15
million in 2013, while Brazil is projected to see 8 percent
annual growth in outbound long-haul travel.\6\
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\1\U.S. Department of Commerce, ``U.S. Secretary of Commerce Penny
Pritzker Speaks at U.S. Travel Association Board of Directors
Meeting,'' February 28, 2014, at www.commerce.gov/news/secretary-
speeches/2014/02/28/us-secretary-commerce-penny-pritzker-speaks-us-
travel-association.
\2\International Trade Administration, National Travel and Tourism
Office, Fast Facts: United States Travel and Tourism Industry--2013,
April 2014.
\3\U.S. Travel Association, U.S. Travel Answer Sheet, March 2014,
at www.ustravel.org/sites/default/files/page/2009/09/
US_Travel_AnswerSheet_March_2014.pdf.
\4\Michaela D. Platzer, U.S. Travel and Tourism: Industry Trends
and Policy Issues for Congress, Congressional Research Service, April
2, 2014, at www.crs.gov/pages/Reports.aspx?PRODCODE=R43463.
\5\U.S. Travel Association and Oxford Economics, The Lost Decade:
The High Costs of America's Failure to Compete for International
Travel, February 2010, at www.oxfordeconomics.com/Media/Default/
economic-impact/capital-investments/LostDecade.pdf.
\6\Ibid, note 4.
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The rapid rise of international travel and tourism around
the world has also led to increasing competition among
destinations. North America and Europe, for instance, have seen
their share of the global tourism market decline, from 80
percent in 1980 to 60 percent in 2010, and it is projected to
further erode to 50 percent in 2030.\7\ Despite the large
growth in international travel receipts in the last decade, the
United States saw its share of the global pie fall, costing the
country an estimated 450,000 jobs, $509 billion in spending,
and $32 billion in tax revenue.\8\ And while the United States
has seen improved tourism growth in recent years--last year the
country saw a record 69.8 million international arrivals (up 5
percent from 2012)\9\ and $180.7 billion in international
spending (up 9 percent from 2012)\10\--the country has not
recovered to its 7.5 percent share of total international
arrivals in 2000, garnering 6.4 percent of the total last
year.\11\ The United States' share of long-haul international
arrivals sits at 12.4 percent in 2011 compared to 17 percent in
2000.\12\
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\7\United Nations World Tourism Organization, Tourism Towards 2030:
Global Overview, UNWTO General Assembly 19th Session, October 10, 2011.
\8\U.S. Travel Association and Oxford Economics, The Lost Decade.
\9\International Trade Administration, National Travel and Tourism
Office, Key Facts About International Travel And Tourism to the United
States, April 2014, at http://travel.trade.gov/outreachpages/
download_data_table/Key_Facts_2013.pdf.
\10\Department of Commerce,``U.S. Travel and Tourism Industry Sets
New Export Record in 2013,'' press release, February 28, 2014, at
www.commerce.gov/news/press-releases/2014/02/28/us-travel-and-tourism-
industry-sets-new-export-record-2013.
\11\U.S. Travel Association, U.S. Travel Answer Sheet.
\12\Brand USA, FY14 Business Plan, November 18, 2013, at http://
thebrandusa.com/ /media/Files/Key%20Dox/2013/BrandUSA-
BusinessPlan_Public-LIVE.pdf.
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The decline of America's share of the global tourism market
at the start of the 21st century--what some in the industry
have deemed the ``Lost Decade''\13\--has renewed Federal
efforts to boost international visits and to facilitate travel.
The Travel Promotion Act of 2009, signed into law by President
Obama in March 2010, established the public-private Corporation
for Travel Promotion--which now does business as Brand USA--to
communicate U.S. entry policies and promote travel to the
United States.\14\ In January 2012, President Obama signed an
Executive Order to improve visa and foreign visitor processing
and travel promotion efforts, including the establishment of an
interagency task force to develop a national strategy.\15\ In
May 2012, this task force released the National Travel and
Tourism Strategy, which aims to coordinate an interagency
effort to attract 100 million international visitors annually
by the end of 2021.\16\ In April 2014, Senator Klobuchar and 24
other cosponsors (including Committee Members Senators Blunt,
Begich, Schatz, Wicker, Heller, Ayotte, Nelson, and Blumenthal)
introduced S. 2250, the Travel Promotion, Enhancement, and
Modernization Act of 2014, to reauthorize Brand USA beyond its
2015 expiration through fiscal year 2020.
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\13\U.S. Travel Association and Oxford Economics, The Lost Decade.
\14\P.L. 111-145.
\15\Executive Order 13597, ``Establishing Visa and Foreign Visitor
Processing Goals and the Task Force On Travel and Competitiveness,''
January 19, 2012, at www.gpo.gov/fdsys/pkg/FR-2012-01-24/pdf/2012-
1568.pdf.
\16\National Travel & Tourism Strategy, Task Force on Travel and
Competitiveness, May 10, 2012, at http://travel.trade.gov/pdf/national-
travel-and-tourism-strategy.pdf.
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These recent efforts have come after a period in which the
Federal Government lacked a sustained international travel-
promotion effort as well as the means to coordinate travel and
tourism policies and programs among various agencies. In 1996,
Congress abolished the U.S. Travel and Tourism Administration,
ending Federal involvement in tourism promotion that began in
1961.\17\ The United States National Tourism Organization Act
of 1996, which eliminated the U.S. Travel and Tourism
Administration, instead created the U.S. National Tourism
Organization to promote international travel to the United
States.\18\ However, plans for the new organization were soon
scrapped after it failed to develop and implement a long-term
financing plan.
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\17\The U.S. Travel and Tourism Administration was established by
the National Tourism Policy Act in 1981 and replaced the U.S. Travel
Service, which was created by the International Travel Act of 1961.
\18\P.L. 104-288.
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Brand USA is tasked with promoting international travel by,
among other things, developing advertising campaigns to promote
travel to the United States; providing information to
international travelers on required documents, fees, and
procedures; correcting misperceptions about U.S. entry
policies; and ensuring that the benefits of tourism are spread
among the States and between urban and rural areas. In the
112th Congress, the Commerce Committee held two hearings on
U.S. travel and tourism and the implementation of the Travel
Promotion Act of 2009 and Brand USA. The Committee has also
held two hearings on the state of the U.S. travel and tourism
industry and Brand USA in the 113th Congress on May 8, 2014,
and June 26, 2014.
The Department of Commerce (DOC) oversees the operations of
Brand USA. Brand USA is governed by an 11-member board of
directors who are appointed by the Secretary of Commerce and
must include representatives from States, cities, and various
sectors of the travel industry. In addition, upon passage of
the Travel Promotion Act of 2009, which created Brand USA, DOC
was given new responsibilities, including--
approving Brand USA's annual objectives,
including its marketing plan;
approving Brand USA's annual budget;
coordinating the efforts of the various
Federal agencies to disseminate information more
effectively to potential international visitors about
documentation and procedures for admission to the
United States and to improve the image of the United
States among potential travelers; and
expanding the research activities of DOC's
Office of Travel and Tourism Industries, including
expanding access to the official Mexican travel surveys
data, obtaining a greater sample of the number of
inbound air travelers for the Survey of International
Travelers, developing estimates of international travel
exports (expenditures) on a State-by-State basis, and
evaluating the success of Brand USA in achieving its
objectives.
In its first year, Brand USA was entitled to $10 million in
Federal funding, primarily for the costs of start-up and
planning. In subsequent years, Brand USA has been entitled to
up to $100 million in Federal funding with an obligation to
collect matching cash or in-kind contributions from private
industry. Federal funding comes from $10 fees collected from
foreign travelers under the Electronic System for Travel
Authorization (ESTA), which is implemented by the Department of
Homeland Security. This fee is charged to travelers from the
over three-dozen countries that are part of the Visa Waiver
Program, for which a visa for travel to the United States is
not required. DOC has entered into a memorandum of
understanding with the Department of Treasury and Brand USA
regarding matching payments from Treasury to Brand USA.\19\
Under the agreement, DOC is responsible for reviewing Brand
USA's requests for Federal matching funds and the associated
documentations of Brand USA's private-sector contributions,
including the fair market value of in-kind goods and services.
According to the memorandum of understanding, the Department of
Treasury maintains the fund that has been established for
payments to Brand USA, and it is responsible for disbursing
Federal matching funds to Brand USA upon direction from DOC
after DOC reviews and approves Brand USA's requests for
matching funds and its valuations of in-kind contributions.\20\
Since 2010, ESTA fees collected in excess of $100 million
annually are deposited in the U.S. Treasury for deficit
reduction purposes. For instance, beginning in FY 2012, ESTA
fees reduced the deficit by approximately $20 million, and in
FY 2013 by approximately $32 million.
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\19\Brand USA, Memorandum of Understanding among the U.S.
Department of the Treasury, the U.S. Department of Commerce, and the
Corporation for Travel Promotion, at www.thebrandusa.com/ /media/Files/
Key%20Dox/Signed%20MOU%20with%20Commerce%20and%20Treasury.pdf.
\20\U.S. Government Accountability Office, Travel Promotion: Brand
USA Needs Plans for Measuring Performance and Updated Policy on Private
Sector Contributions, GAO-13-705, August 26, 2013, at www.gao.gov/
products/GAO-13-705.
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In 2012, Brand USA launched its first consumer marketing
campaign, targeting Canada, Japan, and the United Kingdom.\21\
In 2013, the campaign was expanded to Australia, Brazil, China,
Germany, Hong Kong, Mexico, South Korea, and Taiwan. The 11
markets represent over 75 percent of inbound travel to the
United States. Brand USA has also opened offices in over a
dozen countries, with plans to open offices in five additional
major markets. In February 2014, Brand USA and Oxford Economics
released a study on the impact of Brand USA's marketing
campaigns. The report found that--between September 2012 and
September 2013--Brand USA's consumer, trade, and co-op
marketing campaigns in eight markets generated 1.1 million
additional international visitors and $3.4 billion in
additional spending, creating a total economic impact of $7.4
billion and supporting over 53,000 new jobs. For every $1 spent
by Brand USA, the report said that $47 was generated for U.S.
companies.\22\
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\21\Brand USA's first commercial for international markets featured
Roseanne Cash. See, ``Land of Dreams'' full length video, April 20,
2012, at www.youtube.com/watch?v=WWUA1CXIku8.
\22\Oxford Economics, The Return on Investment of Brand USA
Marketing: 2013 Fiscal Year Analysis, February 2014, at http://
thebrandusa.com/ /media/Files/Key%20Dox/2014/ROI%20Results/
Brand%20USA%20ROI%20FY2013%20Final.pdf.
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On July 25, 2013, the Government Accountability Office
(GAO) published a report addressing, among other things, Brand
USA's programs and activities and its efforts to measure
performance.\23\ GAO found that, although Brand USA had taken
steps to monitor and evaluate its program, it lacks a plan for
measuring its long-term impact on travel to the United States
and visitor spending.\24\ GAO also found that, while Brand USA
had established policies for in-kind contributions, consistent
with applicable Travel Promotion Act requirements, other
approaches may provide more accurate assessments.\25\ To
address these issues, in its report, GAO recommended that Brand
USA: (1) develop a performance plan; (2) competitively select
its media consultant for the development of valuation
methodologies; and (3) formalize procedures for revising the
in-kind contribution policy.\26\ Brand USA concurred with these
recommendations.\27\
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\23\U.S. Government Accountability Office, Brand USA Needs Plan for
Measuring Performance and Updated Policy on Private Sector
Contributions, GAO-13-705, 2013.
\24\Ibid, 15.
\25\Ibid, 20.
\26\Ibid, 36.
\27\Ibid, Appendix III.
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Summary of Provisions
S. 2250 would reauthorize Brand USA, a non-profit public-
private partnership established in 2010 by the Travel Promotion
Act of 2009 (P.L. 111-145) to promote increased international
travel to the United States. The bill would also reauthorize
the collection of ESTA fees from foreign travelers through
2020, which makes up half of Brand USA's budget--up to $100
million. The other half consists of private-sector cash and in-
kind contributions. Under the reauthorization proposal, ESTA
fees collected in excess of $100 million annually would
continue to be used for deficit reduction purposes. In
addition, the bill would require Brand USA to strengthen the
requirements for professional experience to be appointed to the
Board of Directors; include information on advertising methods
and target audiences in its annual report to Congress; reduce
the maximum percentage of in-kind contributions; establish
performance metrics and measure impact of advertising and
benefit to the U.S. economy; formalize procedures and review
process for its in-kind contribution policy; and establish and
follow a competitive bidding process.
Legislative History
Senator Klobuchar introduced S. 2250 on April 10, 2014,
with 24 original cosponsors: Senators Ayotte, Begich,
Blumenthal, Blunt, Boozman, Chambliss, Collins, Durbin, Graham,
Hatch, Heller, Hirono, Hoeven, Kirk, Mikulski, Murkowski,
Nelson, Reid, Schatz, Schumer, Shaheen, Vitter, Warner, and
Wicker. Additional cosponsors are Senators Barrasso, Bennet,
Booker, Enzi, Isakson, Landrieu, and Stabenow. The bill has
received support from numerous companies, associations, and
elected officials.
On May 8, 2014, the Subcommittee on Tourism,
Competitiveness, and Innovation held a hearing, ``The State of
U.S. Travel and Tourism: Industry Efforts to Attract 100
Million Visitors Annually,'' to assess, among other topics,
Brand USA and to hear industry's perspectives on the public-
private venture. On June 26, 2014, the subcommittee held a
second hearing, ``The State of the U.S. Travel and Tourism
Industry: Federal Efforts to Attract 100 Million Visitors
Annually,'' which also examined, among other issues, Brand
USA's accomplishments from the perspective of government
agencies. On July 23, 2014, in an open Executive Session, the
Senate Committee on Commerce, Science, and Transportation
considered the bill and reported S. 2250, as amended, favorably
by voice vote. The Committee adopted a substitute amendment
from Senators Klobuchar and Blunt, which incorporated
modifications from Ranking Member Thune. These changes ensured
that S. 2250, as modified, would be a true companion to H.R.
4450, which passed the House of Representatives on July 22,
2014, by a vote of 347-57.
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:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 30, 2014.
Hon. John D. Rockefeller IV,
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. 2250, the Travel
Promotion, Enhancement, and Modernization Act of 2014.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susan Willie.
Sincerely,
Peter H. Fontaine
(For Douglas W. Elmendorf, Director).
Enclosure.
S. 2250--Travel Promotion, Enhancement, and Modernization Act of 2014
Summary: S. 2250 would extend the provisions of the Travel
Promotion Act of 2009 (Public Law 111-145), which established
the Corporation for Travel Promotion (also known as Brand USA),
through September 30, 2020, and impose new performance and
procurement requirements on the corporation. The bill also
would extend the authority of U.S. Customs and Border
Protection (CBP) to collect travel promotion fees from certain
foreign individuals traveling to the United States. Those fees
are used to partially fund Brand USA.
CBO estimates that enacting S. 2250 would increase direct
spending by $467 million and revenues by $731 million over the
2015-2024 period, resulting in a net decrease in the deficit of
$264 million over the 10-year period. Pay-as-you-go procedures
apply because enacting the legislation would affect direct
spending and revenues.
CBO estimates that implementing S. 2250 would not
significantly affect discretionary spending.
S. 2250 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary effect of S. 2250 is shown in the following table.
The costs of this legislation fall within budget function 370
(commerce and housing credit).
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By fiscal year, in millions of dollars--
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2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015-2019 2015-2024
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CHANGES IN DIRECT SPENDING
Estimated Budget Authority........................ 0 93 93 93 94 94 0 0 0 0 373 467
Estimated Outlays................................. 0 74 93 93 94 94 19 0 0 0 354 467
CHANGES IN REVENUES
Estimated Revenues................................ 0 138 142 146 150 155 0 0 0 0 576 731
NET INCREASE OR DECREASE (-) IN THE DEFICIT FROM CHANGES IN DIRECT SPENDING AND REVENUES
Effect on the Deficit............................. 0 -64 -49 -53 -56 -61 19 0 0 0 -222 -264
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Basis of estimate: Under current law, Brand USA may receive
federal funding, up to $100 million each year through the end
of fiscal year 2015, from fees collected from certain foreign
individuals traveling to the United States. For those funds to
be available, Brand USA must generate an equal amount of
matching contributions from private sources; at least 20
percent of those contributions must be in cash, the remainder
in goods or services. Based on information from Brand USA, CBO
expects that the entity will meet the matching requirements to
receive the full amount of funding available under current law.
CBO expects that the cash contributions received by Brand USA
would be recorded in the budget as offsetting receipts (a
credit against direct spending) and fully spent.
Direct spending
S. 2250 would extend the availability of federal funds to
support Brand USA's efforts to promote tourism in the United
States through September 30, 2020. The bill also would increase
the percentage of private contributions that must be in cash
rather than goods or services from 20 percent to 30 percent of
total contributions each year. Finally, S. 2250 would direct
Brand USA to develop performance measurements and establish a
competitive process for procuring goods and services.
Based on information from Brand USA, CBO estimates that
enacting S. 2250 would increase direct spending by $467 million
over the 2015-2019 period. This amount reflects the amount that
CBO estimates would be available to Brand USA after applying
automatic spending reductions (also known as sequestration)
each year. (Without sequestration, the amount available would
be $100 million each year.)
Revenues
Citizens of certain countries can travel to the United
States for short stays without a visa under the Visa Waiver
Program. Upon receiving approval, such travelers must pay a $10
travel promotion fee, which in part funds spending by Brand
USA. The fee is scheduled to expire under current law at the
end of fiscal year 2015. S. 2250 would extend the fee through
2020, which CBO estimates would raise revenues by $731 million
over the 2015-2024 period.
Spending subject to appropriation
S. 2250 would direct the Secretary of Commerce to establish
a procedure for revising the corporation's policy for private
contributions, and meet with Brand USA every two years to
review procedures used to determine the value of goods and
services received from private sources. CBO estimates that
implementing this provision would not have a significant effect
on discretionary spending over the 2015-2019 period.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays and revenues that are
subject to those pay-as-you-go procedures are shown in the
following table.
CEO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR S. 2250, AS ORDERED REPORTED BY THE SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ON JULY 23, 2014
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By fiscal year, in millions of dollars--
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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014-2019 2014-2024
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NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact.............. 0 0 -64 -49 -53 -56 -61 19 0 0 0 -222 -264
Memorandum:
Changes in Outlays...................... 0 0 74 93 93 94 94 19 0 0 0 354 467
Changes in Revenues..................... 0 0 138 142 146 150 155 0 0 0 0 576 731
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Intergovernmental and private-sector impact: S. 2250
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments.
Previous CBO estimate: On July 18, 2014, CBO transmitted a
cost estimate for H.R. 4450, the Travel Promotion, Enhancement,
and Modernization Act of 2014, as ordered reported by the House
Committee on Energy and Commerce on July 15, 2014. The two
pieces of legislation are similar; the CBO cost estimates
differ, however, because the first estimate did not account for
future automatic spending reductions (known as sequestration).
Our estimate of budget authority and outlays for H.R. 4450
($500 million over the 2015-2024 period) was overstated by $33
million, the amount that CBO estimates would be unavailable to
Brand USA as a result of sequestration. Our estimate of
revenues is the same for both pieces of legislation. Thus,
taking in account the update to the estimate for H.R. 4450, our
estimate of the net deficit effect, a reduction of $264 million
over the 2015-2024 period, is the same for both pieces of
legislation.
Estimate prepared by: Federal spending: Susan Willie;
Federal revenues: Mark Booth; Impact on state, local, and
tribal governments: Melissa Merrell; Impact on the private
sector: Amy Petz.
Estimate approved by: Peter H. Fontaine, Assistant Director
for Budget Analysis.
Regulatory Impact
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:
The bill, as reported, would require additional
accountability measures for the Corporation for Travel
Promotion by requiring the establishment of performance
metrics; a competitive procurement process; formalized
procedures and review process for its in-kind contributions
policy; additional reporting requirements in its annual report
to Congress and annual budget to the Secretary of Commerce; and
additional requirements for the makeup of the board of
directors. The bill would also reduce the maximum proportion of
in-kind contributions that is allowable for matching Federal
funds, and it would strike the Corporation's assessment
authority.
number of persons covered
The legislation would apply to Brand USA, as well as
industry stakeholders that are represented on Brand USA's Board
of Directors. The bill also would affect the Department of
Commerce.
economic impact
This legislation is expected to have a positive economic
impact on the Nation.
privacy
S. 2250 would not have a negative impact on the personal
privacy of individuals.
paperwork
S. 2250 would create new reporting requirements for the
Corporation for Travel Promotion and the DOC. The Corporation
would be required to include additional accountability
information in its annual report to Congress, report additional
information in its annual budget to the Secretary of Commerce,
and submit a report to Congress describing actions taken in
response to recommendations issued by a report from GAO not
later than 60 days after receipt.
Congressionally Directed Spending
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that no
provisions contained in the bill, as reported, meet the
definition of congressionally directed spending items under the
rule.
Section-by-Section Analysis
Section 1. Short title
This section would establish the short title as the
``Travel Promotion, Enhancement, and Modernization Act of
2014.''
Section 2. Board of directors
This section would strengthen the requirements of
professional experience necessary to be appointed to the Board,
including the requirement that at least two members have audit
committee financial expertise, at least five members have
experience working for multinational entities with marketing
budgets, and all board members have to be current or former
chief executive, chief financial, or chief marketing officers
or their equivalents. In addition, this section would broaden
the requirement that one member have expertise in the intercity
passenger railroad business and instead require one member with
expertise in the land or sea passenger transportation sector.
Section 3. Annual report to Congress
This section would clarify the requirements in Brand USA's
annual report to Congress to provide descriptions and
rationales for where the Corporation focuses its efforts and
what channels it uses for advertising.
Section 4. Biannual review of procedures to determine fair market value
of goods and services
This section would reduce the maximum percentage of in-kind
contributions from 80 percent to 70 percent. In addition,
section 4 would require that the Corporation maintain a policy
for in-kind contributions, establish formal procedures with the
DOC for revising the policy on in-kind contributions and for
addressing disagreements regarding the policy. The section
would also require the Corporation and DOC to meet twice a year
to review how the fair-market value of in-kind contributions to
the Corporation is determined.
Section 5. Extension of Travel Promotion Act of 2009
This section would reauthorize the Travel Promotion Act for
five years, through the end of fiscal year 2020.
Section 6. Accountability; procurement requirements
This section would require the Corporation to establish
performance metrics for measuring the impact of its marketing
efforts and for demonstrating the benefit to the U.S. economy;
to report to Congress a statement in response to any
recommendations from the GAO; to establish a competitive
procurement process and certify that contracts are in
compliance with its established competitive procurement
process; and to provide an explanation in its annual budget for
any expenditure over $500,000 instead of over $5,000,000.
Section 7. Repeal of assessment authority
This section would strike the Corporation's authority to
assess fees on U.S. members of the international travel and
tourism industry that are represented on the Board.
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 CAPITOL POLICE ADMINISTRATIVE TECHNICAL CORRECTIONS ACT
OF 2009
(124 Stat. 49)
SEC. 9. TRAVEL PROMOTION ACT OF 2009.
(22 U.S.C. 2131)
(a) Short Title.--This section may be cited as the ``Travel
Promotion Act of 2009''.
(b) The Corporation for Travel Promotion.--
(1) Establishment.--The Corporation for Travel
Promotion is established as a nonprofit corporation.
The Corporation shall not be an agency or establishment
of the United States Government. The Corporation shall
be subject to the provisions of the District of
Columbia Nonprofit Corporation Act (D.C. Code, section
29-1001 et seq.), to the extent that such provisions
are consistent with this subsection, and shall have the
powers conferred upon a nonprofit corporation by that
Act to carry out its purposes and activities.
(2) Board of directors.--
(A) In general.--The Corporation shall have a
board of directors of 11 members with knowledge
of international travel [promotion and
marketing] promotion or marketing, broadly
representing various regions of the United
States, who are United States citizens. At
least 5 members of the board shall have
experience working in United States
multinational entities with marketing budgets.
At least 2 members of the board shall be audit
committee financial experts (as defined by the
Securities and Exchange Commission in
accordance with section 407 of Public Law 107-
204 (15 U.S.C. 7265)). All members of the board
shall be a current or former chief executive
officer, chief financial officer, or chief
marketing officer, or have held an equivalent
management position. Members of the board shall
be appointed by the Secretary of Commerce
(after consultation with the Secretary of
Homeland Security and the Secretary of State),
as follows:
(i) 1 shall have appropriate
expertise and experience in the hotel
accommodations sector;
(ii) 1 shall have appropriate
expertise and experience in the
restaurant sector;
(iii) 1 shall have appropriate
expertise and experience in the small
business or retail sector or in
associations representing that sector;
(iv) 1 shall have appropriate
expertise and experience in the travel
distribution services sector;
(v) 1 shall have appropriate
expertise and experience in the
attractions or recreations sector;
(vi) 1 shall have appropriate
expertise and experience as officials
of a city convention and visitors'
bureau;
(vii) 2 shall have appropriate
expertise and experience as officials
of a State tourism office;
(viii) 1 shall have appropriate
expertise and experience in the
passenger air sector;
(ix) 1 shall have appropriate
expertise and experience in immigration
law and policy, including visa
requirements and United States entry
procedures; and
(x) 1 shall have appropriate
expertise in the [intercity passenger
railroad business] land or sea
passenger transportation sector.
(B) Incorporation.--The members of the
initial board of directors shall serve as
incorporators and shall take whatever actions
are necessary to establish the Corporation
under the District of Columbia Nonprofit
Corporation Act (D.C. Code, section 29-301.01
et seq.).
(C) Term of office.--The term of office of
each member of the board appointed by the
Secretary shall be 3 years, except that, of the
members first appointed--
(i) 3 shall be appointed for terms of
1 year;
(ii) 4 shall be appointed for terms
of 2 years; and
(iii) 4 shall be appointed for terms
of 3 years.
(D) Removal for cause.--The Secretary of
Commerce may remove any member of the board for
good cause.
(E) Vacancies.--Any vacancy in the board
shall not affect its power, but shall be filled
in the manner required by this subsection. Any
member whose term has expired may serve until
the member's successor has taken office, or
until the end of the calendar year in which the
member's term has expired, whichever is
earlier. Any member appointed to fill a vacancy
occurring prior to the expiration of the term
for which that member's predecessor was
appointed shall be appointed for the remainder
of the predecessor's term. No member of the
board shall be eligible to serve more than 2
consecutive full 3-year terms.
(F) Election of chairman and vice chairman.--
Members of the board shall annually elect one
of the members to be Chairman and elect 1 or 2
of the members as Vice Chairman or Vice
Chairmen.
(G) Status as federal employees.--
Notwithstanding any provision of law to the
contrary, no member of the board may be
considered to be a Federal employee of the
United States by virtue of his or her service
as a member of the board.
(H) Compensation; expenses.--No member shall
receive any compensation from the Federal
government for serving on the Board. Each
member of the Board shall be paid actual travel
expenses and per diem in lieu of subsistence
expenses when away from his or her usual place
of residence, in accordance with section 5703
of title 5, United States Code.
(3) Officers and employees.--
(A) In general.--The Corporation shall have
an executive director and such other officers
as may be named and appointed by the board for
terms and at rates of compensation fixed by the
board. No individual other than a citizen of
the United States may be an officer of the
Corporation. The Corporation may hire and fix
the compensation of such employees as may be
necessary to carry out its purposes. No officer
or employee of the Corporation may receive any
salary or other compensation (except for
compensation for services on boards of
directors of other organizations that do not
receive funds from the Corporation, on
committees of such boards, and in similar
activities for such organizations) from any
sources other than the Corporation for services
rendered during the period of his or her
employment by the Corporation. Service by any
officer on boards of directors of other
organizations, on committees of such boards,
and in similar activities for such
organizations shall be subject to annual
advance approval by the board and subject to
the provisions of the Corporation's Statement
of Ethical Conduct. All officers and employees
shall serve at the pleasure of the board.
(B) Nonpolitical nature of appointment.--No
political test or qualification shall be used
in selecting, appointing, promoting, or taking
other personnel actions with respect to
officers, agents, or employees of the
Corporation.
(4) Nonprofit and nonpolitical nature of
corporation.--
(A) Stock.--The Corporation shall have no
power to issue any shares of stock, or to
declare or pay any dividends.
(B) Profit.--No part of the income or assets
of the Corporation shall inure to the benefit
of any director, officer, employee, or any
other individual except as salary or reasonable
compensation for services.
(C) Politics.--The Corporation may not
contribute to or otherwise support any
political party or candidate for elective
public office.
(D) Sense of congress regarding lobbying
activities.--It is the sense of Congress that
the Corporation should not engage in lobbying
activities (as defined in section 3(7) of the
Lobbying Disclosure Act of 1995 (5 U.S.C.
1602(7)).
(5) Duties and powers.--
(A) In general.--The Corporation shall
develop and execute a plan--
(i) to provide useful information to
foreign tourists, business people,
students, scholars, scientists, and
others interested in traveling to the
United States, including the
distribution of material provided by
the Federal government concerning entry
requirements, required documentation,
fees, processes, and information
concerning declared public health
emergencies, to prospective travelers,
travel agents, tour operators, meeting
planners, foreign governments, travel
media and other international
stakeholders;
(ii) to identify, counter, and
correct misperceptions regarding United
States entry policies around the world;
(iii) to maximize the economic and
diplomatic benefits of travel to the
United States by promoting the United
States of America to world travelers
through the use of, but not limited to,
all forms of advertising, outreach to
trade shows, and other appropriate
promotional activities;
(iv) to ensure that international
travel benefits [all States and the
District of Columbia] all States and
territories of the United States and
the District of Columbia, and to
identify opportunities and strategies
to promote tourism to rural and urban
areas equally, including areas not
traditionally visited by international
travelers; and
(v) to give priority to the
Corporation's efforts with respect to
countries and populations most likely
to travel to the United States.
(B) Specific powers.--In order to carry out
the purposes of this subsection, the
Corporation may--
(i) obtain grants from and make
contracts with individuals and private
companies, State, and Federal agencies,
organizations, and institutions;
(ii) hire or accept the voluntary
services of consultants, experts,
advisory boards, and panels to aid the
Corporation in carrying out its
purposes; and
(iii) take such other actions as may
be necessary to accomplish the purposes
set forth in this subsection.
(C) Public outreach and information.--The
Corporation shall develop and maintain a
publicly accessible website.
(6) Open meetings.--Meetings of the board of
directors of the Corporation, including any committee
of the board, shall be open to the public. The board
may, by majority vote, close any such meeting only for
the time necessary to preserve the confidentiality of
commercial or financial information that is privileged
or confidential, to discuss personnel matters, or to
discuss legal matters affecting the Corporation,
including pending or potential litigation.
(7) Major campaigns.--The board may not authorize the
Corporation to obligate or expend more than $25,000,000
on any advertising campaign, promotion, or related
effort unless--
(A) the obligation or expenditure is approved
by an affirmative vote of at least 2/3 of the
members of the board present at the meeting;
(B) at least 6 members of the board are
present at the meeting at which it is approved;
and
(C) each member of the board has been given
at least 3 days advance notice of the meeting
at which the vote is to be taken and the
matters to be voted upon at that meeting.
(8) Fiscal accountability.--
(A) Fiscal year.--The Corporation shall
establish as its fiscal year the 12-month
period beginning on October 1.
(B) Budget.--The Corporation shall adopt a
budget for each fiscal year.
(C) Annual audits.--The Corporation shall
engage an independent accounting firm to
conduct an annual financial audit of the
Corporation's operations and shall publish the
results of the audit. The Comptroller General
of the United States may review any audit of a
financial statement conducted under this
paragraph by an independent accounting firm and
may audit the Corporation's operations at the
discretion of the Comptroller General. The
Comptroller General and the Congress shall have
full and complete access to the books and
records of the Corporation.
(D) Program audits.--Not later than 2 years
after the date of enactment of this section,
the Comptroller General shall conduct a review
of the programmatic activities of the
Corporation for Travel Promotion. This report
shall be provided to appropriate congressional
committees.
(c) Accountability Measures.--
(1) Objectives.--The Board shall establish annual
objectives for the Corporation for each fiscal year
subject to approval by the Secretary of Commerce (after
consultation with the Secretary of Homeland Security
and the Secretary of State). The Corporation shall
establish a marketing plan for each fiscal year not
less than 60 days before the beginning of that year and
provide a copy of the plan, and any revisions thereof,
to the Secretary.
(2) Budget.--The board shall transmit a copy of the
Corporation's budget for the forthcoming fiscal year to
the Secretary not less than 60 days before the
beginning of each fiscal year, together with an
explanation of any expenditure provided for by the
budget in excess of [$5,000,000] $500,000 for the
fiscal year. The Corporation shall make a copy of the
budget and the explanation available to the public and
shall provide public access to the budget and
explanation on the Corporation's website.
(3) Annual report to congress.--The Corporation shall
submit an annual report for the preceding fiscal year
to the Secretary of Commerce for transmittal to the
Congress on or before the 15th day of May of each year.
The report shall include--
(A) a comprehensive and detailed report of
the Corporation's operations, activities,
financial condition, and accomplishments under
this section;
(B) a comprehensive and detailed inventory of
amounts obligated or expended by the
Corporation during the preceding fiscal year;
(C) a detailed description of each in-kind
contribution, its fair market value, the
individual or organization responsible for
contributing, its specific use, and a
justification for its use within the context of
the Corporation's mission;
(D) an objective and quantifiable measurement
of its progress, on an objective-by-objective
basis, in meeting the objectives established by
the board;
(E) an explanation of the reason for any
failure to achieve an objective established by
the board and any revisions or alterations to
the Corporation's objectives under paragraph
(1);
(F) a comprehensive and detailed report of
the Corporation's operations and activities to
promote tourism in rural and urban areas; [and]
(G) a description of, and rationales for, the
Corporation's efforts to focus on specific
countries and populations;
(H)(i) a description of, and rationales for,
the Corporation's combination of media channels
employed in meeting the promotional objectives
of its marketing campaign;
(ii) the ratio in which such channels are
used; and
(iii) a justification for the use and ratio
of such channels; and
[(G)](I) such recommendations as the
Corporation deems appropriate.
(4) Limitation on use of funds.--Amounts deposited in
the Fund may not be used for any purpose inconsistent
with carrying out the objectives, budget, and report
described in this subsection.
(d) Matching Public and Private Funding.--
(1) Establishment of travel promotion fund.--There is
hereby established in the Treasury a fund which shall
be known as the Travel Promotion Fund.
(2) Funding.--
(A) Start-up expenses.--The Secretary of the
Treasury shall make available to the
Corporation such sums as may be necessary, but
not to exceed $10,000,000, from amounts
deposited in the general fund of the Treasury
from fees under section 217(h)(3)(B)(i)(I) of
the Immigration and Nationality Act (8 U.S.C.
1187(h)(3)(B)(i)(I)) to cover the Corporation's
initial expenses and activities under this
section. Transfers shall be made at least
monthly, immediately following the collection
of fees under section 217(h)(3)(B)(i)(I) of the
Immigration and Nationality Act (8 U.S.C.
1187(h)(3)(B)(i)(I)), on the basis of estimates
by the Secretary, and proper adjustments shall
be made in amounts subsequently transferred to
the extent prior estimates were in excess or
less than the amounts required to be
transferred.
(B) Subsequent years.--For each of fiscal
years 2012 through [2015] 2020, from amounts
deposited in the general fund of the Treasury
during the preceding fiscal year from fees
under section 217(h)(3)(B)(i)(I) of the
Immigration and Nationality Act (8 U.S.C.
1187(h)(B)(i)(I)), the Secretary of the
Treasury shall transfer not more than
$100,000,000 to the Fund, which shall be made
available to the Corporation, subject to
paragraph (3) of this subsection, to carry out
its functions under this section. Transfers
shall be made at least quarterly on the basis
of estimates by the Secretary, and proper
adjustments shall be made in amounts
subsequently transferred to the extent prior
estimates were in excess or less than the
amounts required to be transferred.
(3) Matching requirement.--
(A) In general.--No amounts may be made
available to the Corporation under this
subsection after fiscal year 2011, except to
the extent that--
(i) for fiscal year 2012, the
Corporation provides matching amounts
from non-Federal sources equal in the
aggregate to 50 percent or more of the
amount transferred to the Fund under
paragraph (2); and
(ii) for any fiscal year after fiscal
year 2012, the Corporation provides
matching amounts from non-Federal
sources equal in the aggregate to 100
percent of the amount transferred to
the Fund under paragraph (2) for the
fiscal year.
(B) Goods and services.--For the purpose of
determining the amount received from non-
Federal sources by the Corporation, other than
money--
(i) the fair market value of goods
and services (including advertising)
contributed to the Corporation for use
under this section may be included in
the determination; but
(ii) the fair market value of such
goods and services may not account for
more than [80 percent] 70 percent of
the matching requirement under
subparagraph (A) for the Corporation in
any fiscal year.
(C) Right of refusal.--The Corporation may
decline to accept any contribution in-kind that
it determines to be inappropriate, not useful,
or commercially worthless.
(D) Limitation.--The Corporation may not
obligate or expend funds in excess of the total
amount received by the Corporation for a fiscal
year from Federal and non-Federal sources.
(E) Maintenance of an in-kind contributions
policy.--The Corporation shall maintain an in-
kind contributions policy.
(F) Formalized procedures for in-kind
contributions policy.--Not later than 90 days
after the date of enactment of the Travel
Promotion, Enhancement, and Modernization Act
of 2014, the Secretary of Commerce, in
coordination with the Corporation, shall
establish formal, publicly available procedures
specifying time frames and conditions for--
(i) making and agreeing to revisions
of the Corporation's in-kind
contributions policy; and
(ii) addressing and resolving
disagreements between the Corporation
and its partners, including the
Secretary of Commerce, regarding the
in-kind contributions policy.
(G) Biannual review of procedures to
determine fair market value of goods and
services.--The Corporation and the Secretary of
Commerce (or their designees) shall meet on a
biannual basis to review the procedures to
determine the fair market value of goods and
services received from non-Federal sources by
the Corporation under subparagraph (B).
(4) Carryforward.--
(A) Federal funds.--Amounts transferred to
the Fund under paragraph (2)(B) shall remain
available until expended.
(B) Matching funds.--Any amount received by
the Corporation from non-Federal sources in
[fiscal year 2011, 2012, 2013, 2014, or 2015]
each of the fiscal years 2011 through 2020 that
cannot be used to meet the matching requirement
under paragraph (3)(A) for the fiscal year in
which amount was collected may be carried
forward and treated as having been received in
the succeeding fiscal year for purposes of
meeting the matching requirement of paragraph
(3)(A) in such succeeding fiscal year.
[(e)](h) [Omitted]\1\
---------------------------------------------------------------------------
\1\This subsection amended section 217(h)(3)(B) of the Immigration
and Nationality Act (8 U.S.C. 1187(h)(3)(B)).
---------------------------------------------------------------------------
(f) Accountability.--
(1) Performance plans and measures.--Not later than
90 days after the date of the enactment of the Travel
Promotion, Enhancement, and Modernization Act of 2014,
the Corporation shall--
(A) establish performance metrics, including
time frames, evaluation methodologies, and data
sources for measuring--
(i) the effectiveness of marketing
efforts by the Corporation, including
its progress in achieving the long-term
goals of increased traveler visits to
and spending in the United States;
(ii) whether increases in visitation
and spending have occurred in response
to external influences, such as
economic conditions or exchange rates,
rather than in response to the efforts
of the Corporation; and
(iii) any cost or benefit to the
economy of the United States; and
(B) conduct periodic program evaluations in
response to the data resulting from
measurements under subparagraph (A).
(2) GAO accountability.--Not later than 60 days after
the date on which the Corporation receives a report
from the Government Accountability Office with
recommendations for the Corporation, the Corporation
shall submit a report to Congress that describes the
actions taken by the Corporation in response to the
recommendations in such report.
(g) Procurement Requirements.--The Corporation shall--
(1) establish a competitive procurement process; and
(2) certify in its annual report to Congress under
subsection (c)(3) that any contracts entered into were
in compliance with the established competitive
procurement process.
[(f)](e) [Assessment Authority].--
[(1) In general.--Except as otherwise provided in
this subsection, the Corporation may impose an annual
assessment on United States members of the
international travel and tourism industry (other than
those described in subsection (b)(2)(A)(iii) or (H))
represented on the Board in proportion to their share
of the aggregate international travel and tourism
revenue of the industry. The Corporation shall be
responsible for verifying, implementing, and collecting
the assessment authorized by this subsection.
[(2) Initial assessment limited.--The Corporation may
establish the initial assessment after the date of
enactment of this section at no greater, in the
aggregate, than $20,000,000.
[(3) Referenda.--
[(A) In general.--The Corporation may not
impose an annual assessment unless--
[(i) the Corporation submits the
proposed annual assessment to members
of the industry in a referendum; and
[(ii) the assessment is approved by a
majority of those voting in the
referendum.
[(B) Procedural requirements.--In conducting
a referendum under this paragraph, the
Corporation shall--
[(i) provide written or electronic
notice not less than 60 days before the
date of the referendum;
[(ii) describe the proposed
assessment or increase and explain the
reasons for the referendum in the
notice; and
[(iii) determine the results of the
referendum on the basis of weighted
voting apportioned according to each
business entity's relative share of the
aggregate annual United States
international travel and tourism
revenue for the industry per business
entity, treating all related entities
as a single entity.
[(4) Collection.--
[(A) In general.--The Corporation shall
establish a means of collecting the assessment
that it finds to be efficient and effective.
The Corporation may establish a late payment
charge and rate of interest to be imposed on
any person who fails to remit or pay to the
Corporation any amount assessed by the
Corporation under this section.
[(B) Enforcement.--The Corporation may bring
suit in Federal court to compel compliance with
an assessment levied by the Corporation under
this section.
[(C) Investment of funds.--Pending
disbursement pursuant to a program, plan, or
project, the Corporation may invest funds
collected through assessments, and any other
funds received by the Corporation, only in
obligations of the United States or any agency
thereof, in general obligations of any State or
any political subdivision thereof, in any
interest-bearing account or certificate of
deposit of a bank that is a member of the
Federal Reserve System, or in obligations fully
guaranteed as to principal and interest by the
United States.]
[(g)](i) [Omitted]\2\
---------------------------------------------------------------------------
\2\This subsection enacted section 202 of the International Travel
Act of 1961 (22 U.S.C. 2123) relating to the Office of Travel
Promotion.
---------------------------------------------------------------------------
[(h)](j) [Omitted]\3\
---------------------------------------------------------------------------
\3\This subsection enacted section 203 of the International Travel
Act of 1961 (22 U.S.C. 2123a) relating to research and development
activities in connection with the promotion of international travel to
the United States.
---------------------------------------------------------------------------
IMMIGRATION AND NATIONALITY ACT
(8 U.S.C. 1101 et seq.)
SEC. 217. VISA WAIVER PROGRAM FOR CERTAIN VISITORS.
(8 U.S.C. 1187)
* * * * * * *
(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, shall develop and implement a fully
automated electronic travel authorization
system (referred to in this paragraph as the
"System") to collect such biographical and
other information as the Secretary of Homeland
Security determines necessary to determine, in
advance of travel, the eligibility of, and
whether there exists a law enforcement or
security risk in permitting, the alien to
travel to the United States.
(B) Fees.--
(i) In general.--No later than 6
months after the date of enactment of
the Travel Promotion Act of 2009, the
Secretary of Homeland Security shall
establish a fee for the use of the
System and begin assessment and
collection of that fee. The initial fee
shall be the sum of--
(I) $10 per travel
authorization; and
(II) an amount that will at
least ensure recovery of the
full costs of providing and
administering the System, as
determined by the Secretary.
(ii) Disposition of amounts
collected.--Amounts collected under
clause (i)(I) shall be credited to the
Travel Promotion Fund established by
subsection (d) of the Travel Promotion
Act of 2009 (22 U.S.C. 2131(d)).
Amounts collected under clause (i)(II)
shall be transferred to the general
fund of the Treasury and made available
to pay the costs incurred to administer
the System.
(iii) Sunset of travel promotion fund
fee.--The Secretary may not collect the
fee authorized by clause (i)(I) for
fiscal years beginning after [September
30, 2015] September 30, 2020.
(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 three 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 by
the Secretary of Homeland Security that
an alien is eligible to travel to the
United States under the program is not
a determination that the alien is
admissible to the United States.
(iii) Not a determination of visa
eligibility.--A determination by the
Secretary of Homeland Security that an
alien who applied for authorization to
travel to the United States through the
System is not eligible to travel under
the program is not a determination of
eligibility for a visa to travel to the
United States and shall not preclude
the alien from applying for a visa.
(iv) 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--
(i) the Committee on Homeland
Security of the House of
Representatives;
(ii) the Committee on the Judiciary
of the House of Representatives;
(iii) the Committee on Foreign
Affairs of the House of
Representatives;
(iv) the Permanent Select Committee
on Intelligence of the House of
Representatives;
(v) the Committee on Appropriations
of the House of Representatives;
(vi) the Committee on Homeland
Security and Governmental Affairs of
the Senate;
(vii) the Committee on the Judiciary
of the Senate;
(viii) the Committee on Foreign
Relations of the Senate;
(ix) the Select Committee on
Intelligence of the Senate; and
(x) the Committee on Appropriations
of the Senate.
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