II 

110TH CONGRESS 

1ST SESSION S. 1661 

To communicate United States travel policies and improve marketing and 

other activities designed to increase travel in the United States from abroad. 

IN THE SENATE OF THE UNITED STATES 

JUNE 19, 2007 

Mr. DORGAN (for himself, Mr. STEVENS, and Mr. INOUYE) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation 

A BILL 

To communicate United States travel policies and improve 

marketing and other activities designed to increase travel 

in the United States from abroad. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) This Act may be cited as the ‘‘Travel Promotion 

5 Act of 2007’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. The Corporation for Travel Promotion. 

Sec. 3. Accountability measures. 

Sec. 4. Matching public and private funding. 


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Sec. 5. Travel promotion program funding. 

Sec. 6. Assessment authority. 

Sec. 7. Under Secretary of Commerce for Travel Promotion. 

Sec. 8. Research program. 

Sec. 9. Definitions. 

1 SEC. 2. THE CORPORATION FOR TRAVEL PROMOTION. 

2 (a) ESTABLISHMENT.—The Corporation for Travel 

3 Promotion is established as a nonprofit corporation. The 

4 Corporation shall not be an agency or establishment of 

5 the United States Government. The Corporation shall be 

6 subject to the provisions of the District of Columbia Non7 profit Corporation Act (D.C. Code, section 29–1001 et 

8 seq.), to the extent that such provisions are consistent 

9 with this section, and shall have the powers conferred 

10 upon a nonprofit corporation by that Act to carry out its 

11 purposes and activities. 

12 (b) BOARD OF DIRECTORS.— 

13 (1) IN GENERAL.—The Corporation shall have 

14 a board of directors of 14 members, appointed by 

15 the Secretary of Commerce, who are United States 

16 citizens with professional expertise and experience in 

17 the fields of travel, international travel promotion, 

18 and marketing and broadly represent various regions 

19 of the Nation, of whom— 

20 (A) 1 shall represent hotel accommodations 

21 providers; 

22 (B) 2 shall represent restaurant and retail 

23 businesses; 


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1 (C) 2 shall represent attractions and recre2 ation businesses; 

3 (D) 1 shall represent the passenger air 

4 transportation business; 

5 (E) 1 shall represent the car rental busi6 ness; 

7 (F) 3 shall represent State and local of8 fices from disparate regions of the country; 

9 (G) 1 shall be a Federal employee (as de10 fined in section 2105 of title 5, United States 

11 Code); 

12 (H) 1 shall represent the higher education 

13 community; and 

14 (I) 2 shall represent the small business 

15 community. 

16 (2) INCORPORATION.—The members of the ini17 tial board of directors shall serve as incorporators 

18 and shall take whatever actions are necessary to es19 tablish the Corporation under the District of Colum20 bia Nonprofit Corporation Act (D.C. Code, section 

21 29–1001 et seq.). 

22 (3) TERM OF OFFICE.—The term of office of 

23 each member of the board appointed by the Sec24 retary shall be 3 years, except that, of the members 

25 first appointed— 


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1 (A) 3 shall be appointed for terms of 1 

2 year; 

3 (B) 4 shall be appointed for terms of 2 

4 years; and 

5 (C) 4 shall be appointed for terms of 3 

6 years. 

7 (4) VACANCIES.—Any vacancy in the board 

8 shall not affect its power, but shall be filled in the 

9 manner required by this section. Any member whose 

10 term has expired may serve until the member’s suc11 cessor has taken office, or until the end of the cal12 endar year in which the member’s term has expired, 

13 whichever is earlier. Any member appointed to fill a 

14 vacancy occurring prior to the expiration of the term 

15 for which that member’s predecessor was appointed 

16 shall be appointed for the remainder of the prede17 cessor’s term. No member of the board shall be eligi18 ble to serve more than 2 consecutive full terms. 

19 (5) ELECTION OF CHAIRMAN AND VICE CHAIR20 MAN.—Members of the board shall annually elect 

21 one of their members to be Chairman and elect 1 or 

22 more of their members as a Vice Chairman or Vice 

23 Chairmen. 

24 (6) STATUS AS FEDERAL EMPLOYEES.—Not25 withstanding any provision of law to the contrary, 


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1 no member of the board may be considered to be a 

2 Federal employee of the United States by virtue of 

3 his or her service as a member of the board. 

4 (7) COMPENSATION; EXPENSES.—No member 

5 shall receive any compensation from the Federal 

6 government for serving on the Council. Each mem7 ber of the Council shall be paid actual travel ex8 penses and per diem in lieu of subsistence expenses 

9 when away from his or her usual place of residence, 

10 in accordance with section 5703 of title 5, United 

11 States Code. 

12 (c) OFFICERS AND EMPLOYEES.— 

13 (1) IN GENERAL.—The Corporation shall have 

14 a President, and such other officers as may be 

15 named and appointed by the board for terms and at 

16 rates of compensation fixed by the board. No indi17 vidual other than a citizen of the United States may 

18 be an officer of the Corporation. The corporation 

19 may hire and fix the compensation of such employ20 ees as may be necessary to carry out its purposes. 

21 No officer or employee of the Corporation may re22 ceive any salary or other compensation (except for 

23 compensation for services on boards of directors of 

24 other organizations that do not receive funds from 

25 the Corporation, on committees of such boards, and 


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1 in similar activities for such organizations) from any 

2 sources other than the Corporation for services ren3 dered during the period of his or her employment by 

4 the Corporation. Service by any officer on boards of 

5 directors of other organizations, on committees of 

6 such boards, and in similar activities for such orga7 nizations shall be subject to annual advance ap8 proval by the board and subject to the provisions of 

9 the Corporation’s Statement of Ethical Conduct. All 

10 officers and employees shall serve at the pleasure of 

11 the board. 

12 (2) NONPOLITICAL NATURE OF APPOINT13 MENT.—No political test or qualification shall be 

14 used in selecting, appointing, promoting, or taking 

15 other personnel actions with respect to officers, 

16 agents, or employees of the Corporation. 

17 (d) NONPROFIT AND NONPOLITICAL NATURE OF

18 CORPORATION.— 

19 (1) STOCK.—The Corporation shall have no 

20 power to issue any shares of stock, or to declare or 

21 pay any dividends. 

22 (2) PROFIT.—No part of the income or assets 

23 of the Corporation shall inure to the benefit of any 

24 director, officer, employee, or any other individual 


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1 except as salary or reasonable compensation for 

2 services. 

3 (3) POLITICS.—The Corporation may not con4 tribute to or otherwise support any political party or 

5 candidate for elective public office. 

6 (e) DUTIES AND POWERS.— 

7 (1) IN GENERAL.—The Corporation shall de8 velop and execute a plan— 

9 (A) to provide useful information to for10 eign tourists and others interested in travelling 

11 to the United States, including the distribution 

12 of material provided by the Federal Government 

13 concerning entry requirements, required docu14 mentation, fees, and processes, to prospective 

15 travelers, travel agents, tour operators, meeting 

16 planners, foreign governments, travel media and 

17 other international stakeholders; 

18 (B) to counter and correct misperceptions 

19 regarding United States travel policy around 

20 the world; 

21 (C) to maximize the economic and diplo22 matic benefits of travel to the United States by 

23 promoting the United States of America to 

24 world travelers through the use of, but not lim25 ited to, all forms of advertising, outreach to 


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1 trade shows, and other appropriate promotional 

2 activities; 

3 (D) to ensure that international travel ben4 efits all States and the District of Columbia, in5 cluding areas not traditionally visited by inter6 national travelers; and 

7 (E) to give priority to the Corporation’s ef8 forts in terms of countries and populations 

9 most likely to travel to the United States. 

10 (2) SPECIFIC POWERS.—In order to carry out 

11 the purposes of this section, the Corporation may— 

12 (A) obtain grants from and make contracts 

13 with individuals and private companies, State, 

14 and Federal agencies, organizations, and insti15 tutions; 

16 (B) hire or accept the voluntary services of 

17 consultants, experts, advisory boards, and pan18 els to aid the Corporation in carrying out its 

19 purposes; and 

20 (C) take such other actions as may be nec21 essary to accomplish the purposes set forth in 

22 this section. 

23 (f) OPEN MEETINGS.—Meetings of the board of di24 rectors of the Corporation, including any committee of the 

25 board, shall be open to the public. The board may, by maVerDate Aug 31 2005 03:32 Jun 22, 2007 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1661.IS S1661

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1 jority vote, close any such meeting only for the time nec2 essary to preserve the confidentiality of commercial or fi3 nancial information that is privileged or confidential, to 

4 discuss personnel matters, or to discuss legal matters af5 fecting the Corporation, including pending or potential liti6 gation. 

7 (g) MAJOR CAMPAIGNS.—The board may not author8 ize the Corporation to obligate or expend more than 

9 $25,000,000 on any advertising campaign, promotion, or 

10 related effort unless— 

11 (1) the obligation or expenditure is approved by 

an affirmative vote of at least 2 12 ⁄3 of the members of 

13 the board present at the meeting; 

14 (2) at least 8 members of the board are present 

15 at the meeting at which it is approved; and 

16 (3) each member of the board has been given 

17 at least 3 days advance notice of the meeting at 

18 which the vote is to be taken and the matters to be 

19 voted upon at that meeting. 

20 (h) FISCAL ACCOUNTABILITY.— 

21 (1) FISCAL YEAR.—The Corporation shall es22 tablish as its fiscal year the 12-month period begin23 ning on October 1. 

24 (2) BUDGET.—The Corporation shall adopt a 

25 budget for each fiscal year. 


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1 (3) ANNUAL AUDITS.—The Corporation shall 

2 engage an independent accounting firm to conduct 

3 an annual financial audit of the Corporation’s oper4 ations and shall publish the results of the audit. The 

5 Comptroller General shall have full and complete ac6 cess to the books and records of the Corporation. 

7 SEC. 3. ACCOUNTABILITY MEASURES. 

8 (a) OBJECTIVES.—The Board shall establish annual 

9 objectives for the Corporation for each fiscal year subject 

10 to approval by the Secretary. The Corporation shall estab11 lish a marketing plan for each fiscal year not less than 

12 60 days before the beginning of that year and provide a 

13 copy of the plan, and any revisions thereof, to the Sec14 retary. 

15 (b) BUDGET.—The board shall transmit a copy of the 

16 Corporation’s budget for the forthcoming fiscal year to the 

17 Secretary no later than August 16 immediately preceding 

18 that fiscal year, together with an explanation of any ex19 penditure provided for by the budget in excess of 

20 $5,000,000 for the fiscal year. The Corporation shall 

21 make a copy of the budget and the explanation available 

22 to the public and shall provide public access to the budget 

23 and explanation on the Corporation’s website. 

24 (c) ANNUAL REPORT TO CONGRESS.—The Corpora25 tion shall submit an annual report for the preceding fiscal 


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1 year to the Secretary of Commerce for transmittal to the 

2 Congress on or before the 15th day of May of each year. 

3 The report shall include— 

4 (1) a comprehensive and detailed report of the 

5 Corporation’s operations, activities, financial condi6 tion, and accomplishments under this Act; 

7 (2) a comprehensive and detailed inventory of 

8 amounts obligated or expended by the Corporation 

9 during the preceding fiscal year; 

10 (3) an objective and quantifiable measurement 

11 of its progress, on an objective-by-objective basis, in 

12 meeting the objectives established by the board; 

13 (4) an explanation of the reason for any failure 

14 to achieve an objective established by the board; and 

15 (5) such recommendations as the Corporation 

16 deems appropriate. 

17 SEC. 4. MATCHING PUBLIC AND PRIVATE FUNDING. 

18 (a) ESTABLISHMENT OF TRAVEL PROMOTION

19 FUND.—There is hereby established in the Treasury a 

20 fund which shall be known as the Travel Promotion Fund. 

21 (b) FUNDING.— 

22 (1) FIRST YEAR.—For fiscal year 2008, the 

23 Corporation may borrow from the Treasury begin24 ning on October 1, 2007, such sums as may be nec25 essary, but not to exceed $10,000,000, to cover its 


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1 initial expenses and activities under this Act. Before 

2 October 1, 2012, the Corporation shall reimburse 

3 the Treasury, without interest, for any such 

4 amounts borrowed from the Treasury, using funds 

5 deposited in the Fund from non-Federal sources. 

6 Amounts reimbursed to the Treasury shall be treat7 ed as matching funds from non-Federal sources for 

8 purposes of subsection (c) in the fiscal year in which 

9 such reimbursements are made. 

10 (2) SUBSEQUENT YEARS.—For each of fiscal 

11 years 2009 through 2012, from amounts deposited 

12 in the general fund of the Treasury during the pre13 ceding fiscal year from fees under section 5 of this 

14 Act, the Secretary of the Treasury shall transfer not 

15 more than $100,000,000 to the Fund, which shall be 

16 made available to the Corporation, subject to sub17 section (c) of this section, to carry out its functions 

18 under this Act. Transfers shall be made at least 

19 quarterly on the basis of estimates by the Secretary, 

20 and proper adjustments shall be made in amounts 

21 subsequently transferred to the extent prior esti22 mates were in excess or less than the amounts re23 quired to be transferred. 

24 (c) MATCHING REQUIREMENT.— 


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1 (1) IN GENERAL.—No amounts may be made 

2 available to the Corporation under this section after 

3 fiscal year 2008, except to the extent that— 

4 (A) for fiscal year 2009, the Corporation 

5 provides matching funds from non-Federal 

6 sources equal in the aggregate to 50 percent or 

7 more of the amount transferred to the Fund 

8 under subsection (b); and 

9 (B) for any fiscal year after fiscal year 

10 2009, the Corporation provides matching funds 

11 from non-Federal sources equal in the aggre12 gate to 100 percent of the amount transferred 

13 to the Fund under subsection (b) for the fiscal 

14 year. 

15 (2) GOODS AND SERVICES.—For the purpose of 

16 determining the amount of matching funds, other 

17 than money, available to the Corporation— 

18 (A) the fair market value of goods and 

19 services (including advertising) contributed to 

20 the Corporation for use under this Act may be 

21 included in the determination; but 

22 (B) the fair market value of such goods 

23 and services may not account for more than 80 

24 percent of the matching requirement for the 

25 Corporation in any fiscal year. 


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1 (3) RIGHT OF REFUSAL.—The Corporation may 

2 decline to accept any contribution in kind that it de3 termines to be inappropriate, not useful, or commer4 cially worthless. 

5 (4) CARRYFORWARD.—The amount of any 

6 matching funds received by the Corporation in fiscal 

7 year 2009, 2010, or 2011 that cannot be used as 

8 matching funds in the fiscal year in which received 

9 may be carried forward and treated as having been 

10 received in the succeeding fiscal year for purposes of 

11 meeting the matching requirement of paragraph (1) 

12 in such succeeding fiscal year. 

13 SEC. 5. TRAVEL PROMOTION FUND FEES. 

14 If a fully automated electronic traveler authorization 

15 system to collect basic biographical information in order 

16 to determine, in advance of travel, the eligibility of an 

17 alien to travel to the United States is implemented, the 

18 United States Government may charge a fee to an appli19 cant for the use of the system. The amount of any such 

20 fee initially shall be at least $10, plus such amounts as 

21 may be necessary to cover the cost of operating such a 

22 system, but may be reduced thereafter if that amount is 

23 not necessary to ensure that the Corporation is fully fund24 ed. 


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1 SEC. 6. ASSESSMENT AUTHORITY. 

2 (a) IN GENERAL.—Except as otherwise provided in 

3 this section, the Corporation may impose an annual as4 sessment on United States members of the international 

5 travel and tourism industry (other than those described 

6 in section 2(b)(1)(D), (H), or (I)) represented on the 

7 Board in proportion to their share of the aggregate inter8 national travel and tourism revenue of the industry. 

9 (b) INITIAL ASSESSMENT LIMITED.—The Corpora10 tion may establish the initial assessment after the date 

11 of enactment of the Travel and Tourism Promotion Act 

12 at no greater, in the aggregate, than $20,000,000. 

13 (c) REFERENDA.— 

14 (1) IN GENERAL.—The Corporation may not 

15 impose an annual assessment unless— 

16 (A) the Corporation submits the proposed 

17 annual assessment to members of the industry 

18 in a referendum; and 

19 (B) the assessment is approved by a ma20 jority of those voting in the referendum. 

21 (2) PROCEDURAL REQUIREMENTS.—In con22 ducting a referendum under this subsection, the Cor23 poration shall— 

24 (A) provide written or electronic notice not 

25 less than 60 days before the date of the ref26 erendum; 


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1 (B) describe the proposed assessment or 

2 increase and explain the reasons for the ref3 erendum in the notice; and 

4 (C) determine the results of the ref5 erendum on the basis of weighted voting appor6 tioned according to each business entity’s rel7 ative share of the aggregate annual United 

8 States international travel and tourism revenue 

9 for the industry per business entity, treating all 

10 related entities as a single entity. 

11 (d) COLLECTION.— 

12 (1) IN GENERAL.—The Corporation shall estab13 lish a means of collecting the assessment that it 

14 finds to be efficient and effective. The Corporation 

15 may establish a late payment charge and rate of in16 terest to be imposed on any person who fails to 

17 remit or pay to the Corporation any amount as18 sessed by the Corporation under this Act. 

19 (2) ENFORCEMENT.—The Corporation may 

20 bring suit in Federal court to compel compliance 

21 with an assessment levied by the Corporation under 

22 this Act. 

23 (e) INVESTMENT OF FUNDS.—Pending disbursement 

24 pursuant to a program, plan, or project, the Corporation 

25 may invest funds collected through assessments, and any 


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1 other funds received by the Corporation, only in obliga2 tions of the United States or any agency thereof, in gen3 eral obligations of any State or any political subdivision 

4 thereof, in any interest-bearing account or certificate of 

5 deposit of a bank that is a member of the Federal Reserve 

6 System, or in obligations fully guaranteed as to principal 

7 and interest by the United States. 

8 SEC. 7. UNDER SECRETARY OF COMMERCE FOR TRAVEL 

9 PROMOTION. 

10 (a) IN GENERAL.—Title II of the International Trav11 el Act of 1961 (22 U.S.C. 2121 et seq.) is amended by 

12 inserting after section 201 the following: 

13 ‘‘SEC. 202. OFFICE OF TRAVEL PROMOTION. 

14 ‘‘(a) OFFICE ESTABLISHED.—There is established 

15 within the Department of Commerce an office to be known 

16 as the Office of Travel Promotion. 

17 ‘‘(b) UNDER SECRETARY FOR TRAVEL PRO18 MOTION.— 

19 ‘‘(1) IN GENERAL.—The head of the Office 

20 shall be the Under Secretary of Commerce for Trav21 el Promotion. The Under Secretary shall be ap22 pointed by the President, by and with the advice and 

23 consent of the Senate. 

24 ‘‘(2) QUALIFICATIONS.—The Under Secretary 

25 shall— 


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1 ‘‘(A) be a citizen of the United States; and 

2 ‘‘(B) have experience in a field directly re3 lated to the promotion of travel in the United 

4 States. 

5 ‘‘(3) LIMITATION ON INVESTMENTS.—The 

6 Under Secretary may not own stock in, or have a di7 rect or indirect beneficial interest in, a corporation 

8 or other enterprise engaged in the travel, transpor9 tation, or hospitality business or in a corporation or 

10 other enterprise that owns or operates theme park 

11 or other entertainment facility. 

12 ‘‘(c) FUNCTION.—The Under Secretary shall— 

13 ‘‘(1) serve as liaison to the Corporation for 

14 Travel Promotion established by section 2 of the 

15 Travel Promotion Act of 2007 and support and en16 courage the development of programs to increase the 

17 number of international visitors to the United States 

18 for business, leisure, educational, medical, exchange, 

19 and other purposes; 

20 ‘‘(2) work with the Corporation, the Secretary 

21 of State, and the Secretary of Homeland Security— 

22 ‘‘(A) to disseminate information more ef23 fectively to potential international visitors about 

24 documentation and procedures required for ad25 mission to the United States as a visitor; and 


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1 ‘‘(B) to ensure that arriving international 

2 visitors are processed efficiently and in a wel3 coming and respectful manner; 

4 ‘‘(3) support State, regional, and private sector 

5 initiatives to promote travel to and within the 

6 United States; 

7 ‘‘(4) supervise the operations of the Office of 

8 Travel and Tourism Industries; and 

9 ‘‘(5) enhance the entry and departure experi10 ence for international visitors. 

11 ‘‘(d) REPORTS TO CONGRESS.—Within a year after 

12 the date of enactment of the Travel Promotion Act of 

13 2007, and periodically thereafter as appropriate, the 

14 Under Secretary shall transmit a report to the Senate 

15 Committee on Commerce, Science, and Transportation 

16 and the House of Representatives Committee on Energy 

17 and Commerce describing the Under Secretary’s work 

18 with the Corporation, the Secretary of State, and the Sec19 retary of Homeland Security to carry out subsection 

20 (c)(2).’’. 

21 (b) CONFORMING AMENDMENTS.— 

22 (1) Section 5313 of title 5, United States Code, 

23 is amended by adding at the end the following: 

24 ‘‘The Under Secretary of Commerce for Travel 

25 Promotion.’’. 


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1 (2) The International Travel Act of 1961 (22 

2 U.S.C. 2121 et seq.) is amended by striking ‘‘Com3 merce (hereafter in this Act referred to as the ‘Sec4 retary’)’’ in section 201 (22 U.S.C. 2122) and in5 serting ‘‘Commerce, acting through the Under Sec6 retary for Travel Promotion,’’. 

7 SEC. 8. RESEARCH PROGRAM. 

8 Title II of the International Travel Act of 1961 (22 

9 U.S.C. 2121 et seq.), as amended by section 6, is further 

10 amended by inserting after section 202 the following: 

11 ‘‘SEC. 203. RESEARCH PROGRAM. 

12 ‘‘The Office of Travel and Tourism Industries shall 

13 expand and continue its research and development activi14 ties in connection with the promotion of international trav15 el to the United States, including— 

16 ‘‘(1) expanding access to the official Mexican 

17 travel surveys data to provide the States with trav18 eler characteristics and visitation estimates for tar19 geted marketing programs; 

20 ‘‘(2) revising the Commerce Department’s Sur21 vey of International Travelers questionnaire and re22 port formats to accommodate a new survey instru23 ment, expanding the respondent base, improving re24 sponse rates, and improving market coverage; 


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1 ‘‘(3) developing estimates of international travel 

2 exports (expenditures) on a State-by-State basis to 

3 enable each State to compare its comparative posi4 tion to national totals and other States; 

5 ‘‘(4) evaluate the success of the Corporation in 

6 achieving its objectives and carrying out the pur7 poses of the Travel Promotion Act of 2007; and 

8 ‘‘(5) research to support the annual report re9 quired by section 202(d) of this Act.’’. 

10 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 

11 are authorized to be appropriated to the Secretary of Com12 merce for fiscal years 2008 through 2012 such sums as 

13 may be necessary to carry out this section.’’. 

14 SEC. 9. DEFINITIONS. 

15 In this Act: 

16 (1) BOARD.—The term ‘‘Board’’ means the 

17 board of directors of the Corporation. 

18 (2) CORPORATION.—The term ‘‘Corporation’’ 

19 means the Corporation for Travel Promotion estab20 lished by section 2. 

21 (3) FUND.—The term ‘‘Fund’’ means the Trav22 el Promotion Fund established by section 4. 


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1 (4) SECRETARY.—Except as otherwise expressly 

2 provided, the term ‘‘Secretary’’ means the Secretary 

3 of Commerce. 

Æ 


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