[Senate Report 116-275]
[From the U.S. Government Publishing Office]


                                                    Calendar No. 568

116th Congress}                                           { Report
                                 SENATE
  2d Session  }                                           { 116-275

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

                        BRAND USA EXTENSION ACT

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 2203

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


                October 1, 2020.--Ordered to be printed
                
                
                                __________
                               

                    U.S. GOVERNMENT PUBLISHING OFFICE                    
                            WASHINGTON : 2020                     
          
--------------------------------------------------------------------------------------               
             
                
       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                     one hundred sixteenth congress
                             second session

                 ROGER F. WICKER, Mississippi, Chairman
JOHN THUNE, South Dakota             MARIA CANTWELL, Washington
ROY BLUNT, Missouri                  AMY KLOBUCHAR, Minnesota
TED CRUZ, Texas                      RICHARD BLUMENTHAL, Connecticut
DEB FISCHER, Nebraska                BRIAN SCHATZ, Hawaii
JERRY MORAN, Kansas                  EDWARD J. MARKEY, Massachusetts
DAN SULLIVAN, Alaska                 TOM UDALL, New Mexico
CORY GARDNER, Colorado               GARY C. PETERS, Michigan
MARSHA BLACKBURN, Tennessee          TAMMY BALDWIN, Wisconsin
SHELLEY MOORE CAPITO, West Virginia  TAMMY DUCKWORTH, Illinois
MIKE LEE, Utah                       JON TESTER, Montana
RON JOHNSON, Wisconsin               KYRSTEN SINEMA, Arizona
TODD C. YOUNG, Indiana               JACKY ROSEN, Nevada
RICK SCOTT, Florida
                       John Keast, Staff Director
               David Strickland, Minority Staff Director
               
               
               
                                                  Calendar No. 568

116th Congress}                                           { Report
                                 SENATE
  2d Session  }                                           { 116-275

======================================================================               
 
                        BRAND USA EXTENSION ACT

                                _______
                                

                October 1, 2020.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 2203]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 2203) to extend the transfer of 
Electronic Travel Authorization System fees from the Travel 
Promotion Fund to the Corporation for Travel Promotion (Brand 
USA) through fiscal year 2027, and for other purposes, having 
considered the same, reports favorably thereon with amendments 
and recommends that the bill (as amended) do pass.

                          Purpose of the Bill

    S. 2203 would extend the authorization to transfer 
Electronic Travel Authorization System fees from the Travel 
Promotion Fund to Brand USA through fiscal year 2027. These 
funds would enable Brand USA to promote the United States as a 
travel destination around the world to foster increased tourism 
and economic growth in the United States.

                          Background and Needs

    Brand USA is a public-private partnership formed under the 
bipartisan Travel Promotion Act of 2009, and charged with 
promoting the United States as a destination to global 
travelers.\1\ The program's marketing efforts--which operate at 
no cost to U.S. taxpayers--continue to bring in billions of 
dollars in visitor spending, strengthening the Nation's trade 
balance and supporting tens of thousands of jobs.\2\
---------------------------------------------------------------------------
    \1\Brand USA, ``Who We Are'' (https://www.thebrandusa.com/about/
whoweare) (accessed Jul. 27, 2020).
    \2\Oxford Economics, The Return on Investment of Brand USA 
Marketing, Fiscal Year 2018, U.S. Travel Association, Apr. 2019 
(https://www.thebrandusa.com/sites/default/files/Brand%20USA%20ROI%20-
%20FY2018%20(key%20findings)[1].pdf) (accessed Jul. 27, 2020).
---------------------------------------------------------------------------
    Brand USA's operations are supported by a combination of 
non-Federal contributions from destinations, travel brands, and 
private sector organizations.\3\ Its operations are also 
supported by matching funds collected by the U.S. Government 
through a fee on international visitors to the United States 
traveling under the Visa Waiver Program (VWP), known as the 
Electronic System for Travel Authorization (ESTA) fee.\4\ 
According to a return-on-investment study released earlier this 
year, Brand USA's marketing efforts over the past 6 years are 
estimated to have generated 6.6 million incremental 
international visitors to the United States, resulting in $22 
billion of additional visitor spending, and $47.7 billion in 
total economic impact.\5\ Brand USA's Federal funding was set 
to expire following a 2018 congressional budget caps agreement 
that diverted the proceeds from user fees away from the program 
to general revenue.\6\ However, absent a continued funding 
source, Brand USA may lose its ability to effectively compete 
for revenue generated by international tourism.\7\
---------------------------------------------------------------------------
    \3\Brand USA, ``Who We Are'' (https://www.thebrandusa.com/about/
whoweare) (accessed Jul. 27, 2020).
    \4\Travel Promotion Act of 2009; 22 U.S.C. 2131.
    \5\Oxford Economics, The Return on Investment of Brand USA 
Marketing, Fiscal Year 2018, U.S. Travel Association, Apr. 2019, pg. 33 
(https://www.thebrandusa.com/sites/default/files/Brand%20USA%20ROI%20-
%20FY2018%20(key%20findings)[1].pdf) (accessed Jul. 27, 2020).
    \6\Id.
    \7\``U.S. Travel Industry Urges Washington to Reauthorize Tourism 
Body Brand USA,'' Reuters, Sep. 19, 2019 (https://www.reuters.com/
article/us-usa-tourism-brand-usa/u-s-travel-industry-urges-washington-
to-reauthorize-tourism-body-brand-usa-idUSKBN1W40E9) (accessed Jul. 27, 
2020).
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                          Legislative History

    S. 2203 was introduced on July 23, 2019, by Senator Blunt 
(for himself and Senators Klobuchar, Gardner, and Cortez Masto) 
and was referred to the Committee on Commerce, Science, and 
Transportation of the Senate. There are 43 additional 
cosponsors. On July 24, 2019, the Committee met in open 
Executive Session and, by voice vote, ordered S. 2203 reported 
favorably with amendments.
    A companion bill, H.R. 3851, the Brand USA Extension Act, 
was introduced on July 18, 2019, by Representative Welch in the 
House of Representatives. The Brand USA Extension Act was 
included as a provision in the Further Consolidated 
Appropriations Act, 2020, which was signed into law on December 
20, 2019.\8\
---------------------------------------------------------------------------
    \8\See Public Law 116-94, division I, title VIII.
---------------------------------------------------------------------------

                            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:

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    Bill summary: S. 2203 would extend the authority of the 
Corporation for Travel Promotion (commonly known as Brand USA) 
to receive fees from the VISA Waiver Program (VWP) through 
2027; under current law, that authority expires after 2020. The 
bill also would require Brand USA to implement a digital 
outreach strategy and to report on countries with emerging 
markets for U.S. tourism. Finally, among other provisions, S. 
2203 would increase the VWF base fee from $10 to $17.
    Estimated Federal cost: The estimated budgetary effect of 
S. 2250 is shown in Table 1. The costs of this legislation fall 
within budget function 370 (commerce and housing credit).
    Basis of estimate: CBO estimates that enacting S. 2203 
would increase direct spending by $665 million, increase 
revenues by $970 million, and decrease the federal deficit by 
$305 million over the 2019-2029 period.

                                                    TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF S. 2203
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 By fiscal year, millions of dollars--
                                             -----------------------------------------------------------------------------------------------------------
                                                                                                                                       2019-      2019-
                                               2019    2020     2021    2022    2023    2024    2025    2026    2027   2028   2029     2024       2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Increases in Direct Spending
 
 Estimated Budget Authority.................      0        0      95      95      95      95      95      95      95      0      0       380        665
 Estimated Outlays..........................      0        0      85      95      95      95      95      95      95     10      0       370        665
 
                                                                  Increases in Revenues
 
 Estimated Revenues.........................      0      110     110     120     120     120     130     130     130      0      0       580        970
 
                                 Net Increase or Decrease (-) In the Deficit From Changes in Direct Spending and Revenues
 
 Effect on the Deficit......................      0     -110     -25     -25     -25     -25     -35     -35     -35     10      0      -210       -305
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Under current law, U.S. Customs and Border Protection (CBP) 
collects VWP fees from certain foreign travelers to the United 
States. Each year, up to $100 million in such fees must be 
transferred into the Travel Promotion Fund under current law. 
That transfer amount is made available to Brand USA for 
expenditure if the corporation generates non-federal matching 
amounts. Fee amounts received may be spent without further 
appropriation. In 2018, Brand USA received and spent $93 
million in VWF fees. CBO estimates that under S. 2203, Brand 
USA would receive and spend about $95 million annually over the 
2021-2027 period on travel promotion activities, or $665 
million over ten years.
    Certain foreign travelers to the United States are charged 
a VWP base fee of $10; U.S. Customs and Border Protection (CBP) 
may collect that fee through 2027 under current law. In 2018, 
CBP collected $61 million in VWP fees. CBO expects that 
increasing the base fee to $17 under S. 2203 would increase 
revenues by $970 million over ten years.
    The CBO staff contacts for this estimate are David Hughes 
(federal costs) and Nate Frentz (revenues). The estimate was 
reviewed by Theresa A. Gullo, Assistant Director for Budget 
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 number of persons and businesses covered by S. 2203 
should be consistent with current levels already participating 
in or eligible for the Brand USA program and any foreign 
travelers already required to pay ESTA fees.

                            economic impact

    S. 2203, as reported, is not expected to have an adverse 
impact on the Nation's economy. Rather, the legislation is 
expected to promote growth in international tourism to cities 
and regions within the United States and to decrease the 
Federal deficit by $305 million over 10 years.

                                privacy

    S. 2203, as reported, is not expected to have an adverse 
impact on the personal privacy of individuals.

                               paperwork

    S. 2203, as reported, would not increase paperwork 
requirements for private individuals or businesses.

                   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 provide that the bill may be cited as 
the ``Brand USA Extension Act''.

Section 2. The Corporation for Travel Promotion.

    This section would clarify the requirements for certain 
industry sectors to be represented on the board of the 
Corporation for Travel Promotion (the Corporation). This 
section would also clarify the duties of the Corporation to 
include: outreach to speaking conventions and sales missions in 
addition to trade shows, and to promote tourism to the United 
States through digital media, online platforms, and other 
appropriate media. This section would also require that board 
members be given at least 5 days advance notice of a meeting at 
which a vote on approval of a major campaign is to be taken.

Section 3. Accountability Measures.

    This section would lower the threshold triggering an 
explanation of the expenditure in the Corporation's budget 
submission to the Secretary of Commerce from $500,000 to 
$450,000. This section would also require, in the Corporation's 
annual report to Congress, a list of countries the Corporation 
has identified as emerging markets for tourism to the United 
States and a description of the efforts the Corporation has 
made to promote tourism to rural areas of the United States.

Section 4. Extension of funding for Brand USA.

    This section would extend funding for the Brand USA program 
through fiscal year 2027, and clarify that the fair market 
value of goods and services contributed to the Corporation may 
not amount to more than 50 percent of the matching requirement.

Section 5. Performance plan.

    This section would require the Corporation to make the 
performance metrics established under the Travel Promotion Act 
of 2009 publicly available on the Corporation's website not 
later than 90 days after the date of enactment.

Section 6. Electronic System for Travel Authorization fee increase.

    This section would increase the Electronic System for 
Travel Authorization fee from $10 to $17.

                        Changes in Existing Law

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

TRAVEL PROMOTION ACT OF 2009

           *       *       *       *       *       *       *


                        [22 U.S.C. 2131(b)-(d)]

SEC. 9. TRAVEL PROMOTION ACT OF 2009.

  (a) * * *
  (b) The Corporation for Travel Promotion.--
          (1) * * *
          (2) Board of directors.--
                  (A) In general.--The Corporation shall have a 
                board of directors of 11 members with knowledge 
                of international travel 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 or foodservice 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, such 
                        as outdoor recreation or theme parks;
                          (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 
                        commercial or private 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 land or sea passenger 
                        transportation sector.
                  (B) * * *

           *       *       *       *       *       *       *

                  (H) * * *
          (3) * * *
          (4) * * *
          (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, speaking conventions, 
                        sales missions, and other appropriate 
                        promotional activities;
                          (iv) to ensure that international 
                        travel benefits 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[.]; and
                          (vi) to promote tourism to the United 
                        States through digital media, online 
                        platforms, and other appropriate 
                        medium.
                  (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) * * *
          (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] 5 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) * * *
  (c) Accountability Measures.--
          (1) * * *
          (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 [$500,000] $450,000 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) * * *

           *       *       *       *       *       *       *

                  (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]
                  (I) a list of countries the Corporation 
                identifies as emerging markets for tourism to 
                the United States;
                  (J) a description of the efforts the 
                Corporation has made to promote tourism to 
                rural areas of the United States; and
                  [(I)] (K) such recommendations as the 
                Corporation deems appropriate.
          (4) * * *
  (d) Matching Public and Private Funding.--
          (1) * * *
          (2) Funding.--
                  (A) * * *
                  (B) Subsequent years.--For each of fiscal 
                years 2012 through [2020] 2027, 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) * * *
                  (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 [70 percent] 50 percent of 
                        the matching requirement under 
                        subparagraph (A) for the Corporation in 
                        any fiscal year.
                  (C) * * *

           *       *       *       *       *       *       *

                  (G) * * *
          (4) Carryforward.--
          (A) * * *
          (B) Matching funds.--Any amount received by the 
        Corporation from non-Federal sources in each of the 
        fiscal years 2011 through [2020] 2027 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.

           *       *       *       *       *       *       *


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