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[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

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

      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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------
    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\
---------------------------------------------------------------------------
    \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.
---------------------------------------------------------------------------

                         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).

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  By fiscal year, in millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2015    2016    2017    2018    2019    2020    2021    2022    2023    2024   2015-2019  2015-2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               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
--------------------------------------------------------------------------------------------------------------------------------------------------------

    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
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                               By fiscal year, in millions of dollars--
                                             -----------------------------------------------------------------------------------------------------------
                                               2014   2015   2016    2017    2018    2019    2020    2021   2022   2023   2024   2014-2019    2014-2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       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
--------------------------------------------------------------------------------------------------------------------------------------------------------

    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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