U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

39–010 

" ! SENATE 113TH CONGRESS

2d Session 

REPORT

2014

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 


tjames on DSK5VPTVN1PROD with REPORTSE:\Seals\Congress.#13
(II) 

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 


tjames on DSK5VPTVN1PROD with REPORTS
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. 

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 trilVerDate Mar 15 2010 02:32 Aug 06, 2014 Jkt 039010 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\SR234.XXX SR234

tjames on DSK5VPTVN1PROD with REPORTS
2 

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/USlTravellAnswerSheetlMarchl2014.pdf. 4Michaela 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. 

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/downloadldataltable/KeylFactsl2013.pdf. 10Department 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-BusinessPlanlPublic-LIVE.pdf. 13 U.S. Travel Association and Oxford Economics, The Lost Decade. 

lion 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

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

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— 


tjames on DSK5VPTVN1PROD with REPORTS
3 

14P.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/FR2012-01-24/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. 17The 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. 18P.L. 104–288. 

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. 

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. 

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; 


tjames on DSK5VPTVN1PROD with REPORTS
4 

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. 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. 

• 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. 

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. 


tjames on DSK5VPTVN1PROD with REPORTS
5 

22Oxford 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. 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. 

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

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 longterm 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

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. 


tjames on DSK5VPTVN1PROD with REPORTS
6 

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), 


tjames on DSK5VPTVN1PROD with REPORTS
7 

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 deVerDate Mar 15 2010 02:32 Aug 06, 2014 Jkt 039010 PO 00000 Frm 00009 Fmt 6659 Sfmt 6602 E:\HR\OC\SR234.XXX SR234

tjames on DSK5VPTVN1PROD with REPORTS
8 

velop 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-asyou-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 PayAs-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, howVerDate Mar 15 2010 02:32 Aug 06, 2014 Jkt 039010 PO 00000 Frm 00010 Fmt 6659 Sfmt 6602 E:\HR\OC\SR234.XXX SR234

tjames on DSK5VPTVN1PROD with REPORTS
9 

ever, 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. 


tjames on DSK5VPTVN1PROD with REPORTS
10 

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 anVerDate Mar 15 2010 02:32 Aug 06, 2014 Jkt 039010 PO 00000 Frm 00012 Fmt 6659 Sfmt 6602 E:\HR\OC\SR234.XXX SR234

tjames on DSK5VPTVN1PROD with REPORTS
11 

nual 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 øpromotion 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; 


tjames on DSK5VPTVN1PROD with REPORTS
12 

(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 øintercity 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 


tjames on DSK5VPTVN1PROD with REPORTS
13 

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 


tjames on DSK5VPTVN1PROD with REPORTS
14 

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 øall 

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 


tjames on DSK5VPTVN1PROD with REPORTS
15 

(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 ø$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; 


tjames on DSK5VPTVN1PROD with REPORTS
16 

(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; øand¿ 

(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 

ø(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 ø2015¿ 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 


tjames on DSK5VPTVN1PROD with REPORTS
17 

$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 ø80 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. 


tjames on DSK5VPTVN1PROD with REPORTS
18 

1This subsection amended section 217(h)(3)(B) of the Immigration and Nationality Act (8 

U.S.C. 1187(h)(3)(B)). 

(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 øfiscal 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. 

ø(e)¿(h) [Omitted]1

(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 longterm 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 


tjames on DSK5VPTVN1PROD with REPORTS
19 

(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. 

ø(f)¿(e) øASSESSMENT AUTHORITY¿.— ø(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. 

ø(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. 

ø(3) REFERENDA.— 

ø(A) IN GENERAL.—The Corporation may not impose an 

annual assessment unless— 

ø(i) the Corporation submits the proposed annual 

assessment to members of the industry in a referendum; and 

ø(ii) the assessment is approved by a majority of 

those voting in the referendum. 

ø(B) PROCEDURAL REQUIREMENTS.—In conducting a referendum under this paragraph, the Corporation shall— 

ø(i) provide written or electronic notice not less than 

60 days before the date of the referendum; 

ø(ii) describe the proposed assessment or increase 

and explain the reasons for the referendum in the notice; and 

ø(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. 

ø(4) COLLECTION.— ø(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. 

ø(B) ENFORCEMENT.—The Corporation may bring suit in 

Federal court to compel compliance with an assessment 

levied by the Corporation under this section. 

ø(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 


tjames on DSK5VPTVN1PROD with REPORTS
20 

2This subsection enacted section 202 of the International Travel Act of 1961 (22 U.S.C. 2123) 

relating to the Office of Travel Promotion. 3This 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. 

System, or in obligations fully guaranteed as to principal 

and interest by the United States.¿ 

ø(g)¿(i) [Omitted]2

ø(h)¿(j) [Omitted]3

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 


tjames on DSK5VPTVN1PROD with REPORTS
21 

(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: 


tjames on DSK5VPTVN1PROD with REPORTS
22 

(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 øSeptember 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 


tjames on DSK5VPTVN1PROD with REPORTS
23 

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. 

* * * * * * * 

Æ 


tjames on DSK5VPTVN1PROD with REPORTS