[DOCID: f:sr233.110]
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Calendar No. 514
110th Congress Report
1st Session SENATE 110-233
_______________________________________________________________________
TRAVEL PROMOTION ACT OF 2007
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 1661
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>
November 27 legislative day, November 16, 2007.--
Ordered to be printed
Filed, under authority of the order of the Senate of November 16, 2007
--------
U.S. GOVERNMENT PRINTING OFFICE
69-010 WASHINGTON : 2007
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred tenth congress
first session
DANIEL K. INOUYE, Hawaii, Chairman
TED STEVENS, Alaska, Vice-Chairman
JOHN D. ROCKEFELLER IV, West JOHN McCAIN, Arizona
Virginia TRENT LOTT, Mississippi
JOHN F. KERRY, Massachusetts KAY BAILEY HUTCHISON, Texas
BYRON L. DORGAN, North Dakota OLYMPIA J. SNOWE, Maine
BARBARA BOXER, California GORDON H. SMITH, Oregon
BILL NELSON, Florida JOHN ENSIGN, Nevada
MARIA CANTWELL, Washington JOHN E. SUNUNU, New Hampshire
FRANK R. LAUTENBERG, New Jersey JIM DeMINT, South Carolina
MARK PRYOR, Arkansas DAVID VITTER, Louisiana
THOMAS CARPER, Delaware JOHN THUNE, South Dakota
CLAIRE McCASKILL, Missouri
AMY KLOBUCHAR, Minnesota
Margaret Cummisky, Staff Director and Chief Counsel
Lila Helms, Deputy Staff Director and Policy Director
Jean Toal Eisen, Senior Advisor and Deputy Policy Director
Christine Kurth, Republican Staff Director and General Counsel
Paul J. Nagle, Republican Chief Counsel
Mimi Braniff, Republican Deputy Chief Counsel
Calendar No. 514
110th Congress Report
SENATE
1st Session 110-233
======================================================================
TRAVEL PROMOTION ACT OF 2007
_______
November 27 (legislative day, November 16), 2007.--Ordered to be
printed
Filed, under authority of the order of the Senate of November 16, 2007
_______
Mr. Inouye, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 1661]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill <greek-l>joint resolution deg. (S.
<greek-l>H.R. deg. 1661) <greek-l>TITLE deg. to communicate
United States travel policies and improve marketing and other
activities designed to increase travel in the United States
from abroad, having considered the same, reports favorably
thereon with amendments and recommends that the bill
<greek-l>joint resolution deg. (as amended) do pass.
Purpose of the Bill
The purpose of the Travel Promotion Act of 2007, as reported,
is to increase international travel to all areas of the United
States, communicate U.S. travel policies overseas, and make
entry procedures into the United States more efficient and
welcoming.
Background and Needs
Travel and tourism generates approximately $1.3 trillion in
economic activity in the United States every year. The U.S.
travel and tourism industry is one of the Nation's largest
employers with approximately 8.3 million direct travel-
generated jobs. According to the Department of Commerce (DOC),
international travel receipts (travel-related tourism spending,
including passenger fares) in the United States were $107.8
billion in 2006, which surpassed the previous record of $103.1
billion set in 2000. In 2006, foreign travelers spent $7.5
billion more in the United States than U.S. travelers spent
abroad. Travel and tourism exports accounted for seven percent
of all U.S. exports and 26 percent of services exports.
According to the Travel Industry Association of America (TIAA),
an increase of one percent in international travel market share
would produce a $3 billion increase in payroll receipts.
While the tourism industry continues to be vital to the U.S.
economy, the Nation's share of the world market of
international tourism is in decline. According to the TIA, the
global international travel market has increased by 20 percent
since 2000. During this same period, however, overseas travel
to the United States has declined by 17 percent and this
decline has resulted in a loss of nearly 200,000 jobs, $94
billion in visitor spending, and $16 billion in Federal, State
and local tax receipts. In 1992, according to the DOC, the
United States attracted 9.4 percent of all international
tourist arrivals from around the world. In 2004, the United
States attracted only 6 percent of total international
arrivals. While the 2006 trade surplus related to tourism is
$7.5 billion, the 1992 surplus was $22.2 billion. Trade and
tourism officials and experts note two issues that have
contributed to the decline and need to be addressed: (1) the
lack of a coordinated international tourism advertising
campaign; and (2) the increased difficulty for international
visitors to gain entry to the United States.
The Federal government recognizes the importance of travel to
the U.S. economy. The DOC has taken an active role to promote
international travel to the United States, but emphasis on
specific promotions has fluctuated over time. In addition,
following September 11, 2001, the U.S. government has increased
border security, which has resulted in a significant decrease
in the number of visitors to the United States. Recently, the
State Department and the Department of Homeland Security (DHS)
have recognized the need to make the visa and entry process
more efficient and welcoming for foreign visitors, while
maintaining border security. In 2006, Secretary of State
Condoleeza Rice and Secretary of Homeland Security Michael
Chertoff initiated a joint agreement, the Rice-Chertoff Joint
Vision to Ensure Secure Borders and Open Doors, to utilize
technology and eliminate inefficiencies to improve both
international travelers' ability to participate in U.S. tourism
and border security.
Despite ongoing Federal efforts, business leaders across
multiple industries note the continued loss of international
travelers to other destinations. Two comprehensive reports
recommended reforms needed to regain international arrivals.
The United States Travel and Tourism Advisory Board (USTTAB)
issued its report to the DOC on September 5, 2006. The Discover
America Partnership (DAP), an organization comprised of a
number of leaders from the travel and tourism industries,
released its report on January 31, 2007.
History of Federally Funded International Travel Promotion.
Federal promotion of tourism in the United States dates back to
the establishment of the United States Travel Bureau in 1937.
However, only in the past 40 years has the DOC had an office or
administration that promotes U.S. tourism to foreign citizens
through coordinated advertising. Enacted in 1961, the
International Travel Act required the Secretary of Commerce,
through the establishment of the United States Travel Service
(USTS), to carry out a program to encourage travel to the
United States by persons from foreign countries. Appropriations
directed to the USTS increased until 1977, when Congress and
the White House began scaling back the government's role in
advertising. Federal funding for advertising was eliminated in
1996, when Congress abolished the United States Travel and
Tourism Administration, the successor of the USTS.
Between 2001 and 2003, total tourism receipts dropped almost
12 percent, and tourism related industries lost approximately
390,000 jobs. Congress decided to reinitiate Federal tourism
advertising in 2003 in response to the downturn. The fiscal
year (FY) 2003 Consolidated Appropriations Resolution (P.L.
108-7, Sec. 210), authorized the Secretary of Commerce to
``award grants and make direct lump sum payments in support of
an international advertising and promotional campaign developed
in consultation with the private sector to encourage
individuals to travel to the United States consisting of radio,
television, and print advertising and marketing programs.''
This law also established the USTTAB and provided a one-time
$50 million appropriation.
The USTTAB is comprised of 14 senior travel and tourism
executives from across the United States. These members advise
Secretary of Commerce Carlos Gutierrez on how to best increase
the number of international visitors to the United States and
ensure that the share of the country's international receipts
continues to grow. In addition, the board advises the Secretary
on the creation of a national tourism policy. The USTTAB
planned an advertising campaign called ``Visit America.'' The
DOC Office of Travel and Tourism Industries (OTTI) was
responsible for overseeing this campaign.
Initially, the OTTI planned to target five countries (Canada,
Germany, Japan, Mexico, and the United Kingdom) with
advertisements, but Congress rescinded $44 million in the FY
2004 Consolidation Appropriations Act (P.L. 108-199). The OTTI
used the remaining $6 million on an advertising campaign
focused at the United Kingdom alone. In the fall of 2004, the
FY 2005 Consolidation Appropriations Act (P.L. 108-447) gave an
additional $10 million to the program, allowing the OTTI to
expand the advertising campaign to Japan in 2005. In December
2005, Congress appropriated another $4 million in the FY 2006
Science, State, Justice, Commerce, and Related Agencies
Appropriations Act (P.L. 109-108), providing a total of $20
million for the campaign to date. On January 31, 2007, the DOC
announced a $3.9 million cooperative agreement with the TIA to
develop a destination website for the United States. TIA will
create and market multi-language consumer-focused Web sites
that will encourage leisure travel to the United States from a
broad range of important markets.
USTTAB Report. The USTTAB report, entitled ``Restoring
America's Travel Brand: A National Strategy to Compete for
International Visitors,'' recommended actions in four areas to
help improve America's standing in the international travel
market: (i) creating a stronger voice for travel in government;
(ii) making the arrival experience of travelers more welcoming;
(iii) removing unnecessary barriers to travel; and (iv)
avoiding inappropriate taxes, fees, and regulations on
travelers.
The USTTAB report found that the countries that claim the
largest share of the growth in the international travel market
are those that have ministries of tourism or other governmental
entities that help coordinate tourism policy decisions. The
United States, by contrast, has no dedicated office of tourism
or official to advocate at the highest policy levels. The
USTTAB report recommended the creation of an office with the
power to coordinate government policy to enhance the Nation's
competitive standing in the global travel market. That Federal
office would serve as an institutional home and voice for the
industry; energize interagency communication regarding travel
and tourism; identify existing private sector advisory
committees and share their input across agencies, industry, and
the public; and coordinate the roles of other government
agencies to more effectively expand travel and tourism
promotion, and address infrastructure needs and development.
The report contained numerous suggestions on making the first
arrival experiences of international travelers more welcoming.
The USTTAB recommended fully staffing the Customs and Border
Patrol (CBP) and the Transportation Security Administration
(TSA) to reduce wait times at inspection points. Members of the
USTTAB and other industry participants offered their expertise
in managing waiting lines and staffing patterns to Federal
agencies interfacing with travelers. The TIA entered
discussions with the Under Secretary of State for Public
Diplomacy and Public Affairs in that effort. The travel and
tourism industry also has offered to advise Federal agencies on
signage and the use of international symbols to direct and
prepare travelers for the inspection process.
The USTTAB report also recommended removing unnecessary
barriers to travel. The USTTAB noted that the Nonimmigrant Visa
Program is understaffed and cited a General Accountability
Office report that found almost half of the Department of
State's 211 visa-issuing posts reported maximum wait times for
visa interviews of 30 days or more. The USTTAB was particularly
concerned about the long waits in Brazil, China, India, Mexico,
and Venezuela.
Finally, the USTTAB report argued that Federal, State, local,
special entity, and foreign-government imposed taxes and fees
on rental cars, commercial aviation, hotels, and restaurant
meals, among other services, increase the cost of travel and
can dampen demand for inbound travel. In the report, the USTTAB
asked the DOC to advocate against discriminatory taxing
structures and to work within the interagency process to
discourage travel taxes imposed by international authorities
when the revenue raised has no clear benefit or connection to
the travel and tourism industry.
DAP Report. In 2006, the DAP was formed to examine the
reasons for, and to develop policy recommendations to reverse,
the decline in international travelers that started after
September 11, 2001. On January 31, 2007, the DAP released a
report entitled ``A Blueprint to Discover America.'' The report
offers a three-point plan to increase foreign travel to the
United States. Specifically, it calls for the creation of a
marketing and communications program, modernization of U.S.
ports of entry, and reform of the visa system.
The DAP report recommended that the United States develop a
robust and coordinated international traveler promotion
campaign to compete with similar programs run by other
countries. The report found that such a program should develop
and implement a strategy that disseminates information about
the improvements in the U.S. visa process and welcomes
travelers to the United States; create a public-private
partnership to help market and promote the United States
abroad; and be based on a dependable funding source.
The DAP also recommends establishing a model port of entry
program at the 12 busiest airports. It suggests that such a
program should be designed to decrease average processing time
by hiring more CBP officers; expand the use of technology and
improve CBP and TSA coordination; work with the private sector
to improve customer service; and create a registered traveler
program for trusted, low-risk foreigners.
In addition, the DAP report focuses on delays in the visa
application and processing system as a barrier to international
travelers coming to the United States. The report recommends
that the Federal government take steps to reduce visa applicant
wait times to 30 days or less; strengthen security by both
collecting traveler biometric information, including a full set
of fingerprints, and creating a better exit tracking system;
and increase the number of countries eligible for the visa
waiver program.
Summary of Provisions
S. 1661 would establish a nonprofit corporation (Corporation)
to create and execute a nationally-coordinated travel promotion
program. The purpose of the program would be to accurately
communicate the Nation's travel policies, to encourage travel
to the United States, and to provide international exposure for
areas of the United States that do not have the resources to
promote themselves overseas. The Corporation would be governed
by a 15 member board of directors appointed by the Secretary of
Commerce, which consists of representatives from States, the
Federal government, higher education, and the travel industry.
In the first year, the Corporation would be permitted to borrow
start up funds from the Treasury, which would be paid back with
interest over the course of five years. In subsequent years,
the Corporation would be entitled to receive matching Federal
funds from moneys collected from travelers under the Electronic
Travel Authorization system to be established by the DHS. In
order to be entitled to receive Federal funding, the
Corporation would be required to raise non-Federal money and
in-kind matching contributions at the rate of 50 percent in
fiscal year 2009 and 100 percent in the subsequent years.
In addition, the Travel Promotion Act would establish an
office in the DOC known as the Office of Travel Promotion
headed by the Under Secretary of Travel Promotion. The Under
Secretary would serve as a liaison to the Corporation, work
with the Secretaries of State and Homeland Security to ensure
that international visitors are processed efficiently, and
promote travel to the United States.
Finally, S. 1661 would direct the Secretary of Homeland
Security to establish a model ports-of-entry program for the
purpose of providing a more efficient and welcoming
international arrival process and to implement the program
initially at the 20 U.S. international airports that have the
highest number of foreign visitors arriving annually.
Legislative History
The Commerce Committee held two hearings this session
examining travel promotion. The first hearing was a full
Committee hearing held on January 31, 2007, and chaired by
Senator Byron Dorgan. The Committee heard testimony regarding
the industry's perspective on the health of the travel industry
and what legislative initiatives should be taken to strengthen
the national economy without decreasing domestic security. The
second hearing was held on March 20, 2007, in the Interstate
Commerce, Trade, and Tourism Subcommittee. The Subcommittee
heard testimony from representatives from the DOC, DHS, and
State Department as well as representatives of State tourism
agencies regarding their perspectives as to the state of the
travel industry, difficulties that travelers face coming to the
United States, and recommendations for encouraging
international travel to America.
On June 19, 2007, Senator Dorgan introduced S. 1661, the
Travel Promotion Act of 2007, which was referred to the
Committee on Commerce, Science, and Transportation. Chairman
Inouye and Vice Chairman Stevens were original cosponsors of
the measure. When S. 1661 was considered in executive session,
Senators Smith, Kerry, Ensign, Pryor, Lautenberg, and Martinez
were also cosponsors of the legislation. The bill has 27
cosponsors in all as of the date on which this report was
filed.
On June 27, 2007, the Committee met in an open executive
session to consider S. 1661. Chairman Inouye offered an
amendment that made technical corrections to the legislation
and clarified that the Corporation would be required to repay
any borrowed startup funds from the Treasury with interest. An
amendment by Vice Chairman Stevens was accepted to replace
section 5 of the Act and insert language that would amend the
Immigration and Nationality Act by authorizing the Secretary of
Homeland Security to develop and implement a fully automated
electronic travel authorization system to collect such basic
biographical information as the Secretary of Homeland Security
determines is necessary in advance of admitting a foreign
traveler to enter the United States under the visa waiver
program. The Stevens amendment would further authorize the
Secretary of Homeland Security to charge users a fee to access
the electronic travel authorization system. The fee would be
used to cover the costs of administering the system and also
would include an amount of no more than $10 per user that would
be transferred to a fund in the Treasury that could be used to
match industry contributions to the Corporation. Finally, the
Stevens amendment would create a new section 9, which would
direct the Secretary of Homeland Security to establish a model
ports-of-entry program for the purpose of providing a more
efficient and welcoming international arrival process and to
implement the program initially at the 20 U.S. international
airports that have the highest number of foreign visitors
arriving annually and, subject to appropriations, to employ not
fewer than an additional 200 CBP officers not later than the
end of fiscal year 2008 for use at those airports. Senator
Lautenberg offered an amendment to add one representative of
the intercity passenger railroad business to the Corporation
board. The Inouye, Stevens, and Lautenberg amendments were
accepted en bloc.
Senator Sununu offered an amendment to strike section 5 of
the Act which, as amended by the manager's amendment, would
authorize the Secretary of Homeland Security to develop and
implement a fully automated electronic travel authorization
system to collect basic biographical information from travelers
under the visa waiver program and to impose a fee on each user
of the system. The Sununu amendment was defeated by voice vote.
Senator DeMint offered an amendment that would prohibit the
imposition of a fee under section 5 of the Act unless the
Secretary of State certifies in writing to the Secretary of
Commerce that the time for processing visas has been
significantly reduced so that travel is not discouraged and the
Secretary of Homeland Security certifies to the Secretary of
Commerce that significant improvements have been made in the
processing of the arrival of international travelers. The
DeMint amendment was defeated by voice vote.
By voice vote, the bill, as amended, was ordered reported.
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:
November 16, 2007.
Hon. Daniel K. Inouye,
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. 1661, the Travel
Promotion Act of 2007.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susan Willie.
Sincerely,
Peter R. Orszag.
Enclosure.
S. 1661--Travel Promotion Act of 2007
Summary: S. 1661 would establish a new organization, the
Corporation for Travel Promotion (the Corporation), to promote
international tourism in the United States. The Corporation
would be funded through amounts borrowed from the Treasury,
assessments on private firms operating in the travel industry,
and new fees charged to users of the visa waiver program.
Under S. 1661, all amounts available to the Corporation
would be recorded as deposits into a new fund in the Treasury,
and the Corporation would be authorized to spend amounts in
that fund. CBO estimates that assessments imposed by the
Corporation would increase revenues by an estimated $62 million
over the 2009-2012 period and $145 million over the 2008-2017
period, net of income and payroll tax offsets. CBO also
estimates that enacting S. 1661 would increase direct spending
by $3 million in 2008, $65 million over the 2008-2012 period,
and $180 million over the 2008-2017 period.
The bill also would establish the Office of Travel
Promotion in the Department of Commerce (DoC) to develop
programs to increase the number of international travelers
coming to the United States and authorize the Office of Travel
and Tourism Industries to expand its research activities.
Finally, S. 1661 would authorize DHS to develop a program to
improve the arrival process for international travelers in U.S.
airports and to employ more customs officers at certain
airports.
Based on information from DoC and DHS, CBO estimates that
implementing S. 1661 would increase discretionary spending by
about $38 million in 2008 and $282 million over the 2008-2012
period, assuming appropriation of the necessary amounts.
S. 1661 contains no intergovernmental mandates as defined
in the Unfunded Mandates Reform Act (UMRA) and would impose no
cost on state, local, or tribal governments.
In the event that the Corporation imposes an assessment on
firms in the travel industry, S. 1661 would impose a private-
sector mandate, as defined in UMRA, on the members of the
industry who would be required to pay such an assessment. The
Corporation could compel the payment of any assessments through
the federal courts. Based on information from industry sources,
CBO estimates that the cost to comply with the mandate would
fall well below the annual threshold for private-sector
mandates established by UMRA ($131 million in 2007, adjusted
annually for inflation).
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 1661 is shown in the following table.
The costs of this legislation fall within budget function 370
(commerce and housing credit) and 750 (administration of
justice).
Basis of estimate: CBO expects that the cash flows related
to the Corporation would appear on the budget as governmental
receipts and direct spending because S. 1661 specifies that the
Corporation's finances would operate through the U.S. Treasury,
and its assessments would stem from an exercise of the
sovereign power of the federal government.
For this estimate, CBO assumes that the bill would be
enacted early in fiscal year 2008 and that the necessary
amounts would be appropriated at the start of each fiscal year.
Revenues
S. 1661 would authorize the Corporation to impose an annual
assessment on certain sectors of the travel industry, pending
approval in a referendum by members of the travel industry. The
Corporation also would be authorized to accept voluntary
contributions from private sources either in cash or, with
limitations, in goods and services. Such assessments and any
voluntary contributions would be recorded on the federal budget
as additional revenues.
CBO assumes that the annual assessment on the travel and
tourism industry would total $20 million in 2009 as authorized
by the bill. In subsequent years, CBO assumes that industry
assessments would increase at the rate of inflation. We do not
expect that the industry would make voluntary contributions
that would substantially raise the Corporation's revenues above
$20 million per year.
TABLE 1.--ESTIMATED BUDGETARY IMPACT OF S. 1661
------------------------------------------------------------------------
By fiscal year, in millions of
dollars--
---------------------------------------
2008 2009 2010 2011 2012
------------------------------------------------------------------------
CHANGES IN REVENUES \1\
Estimated Revenues.............. 0 15 15 16 16
CHANGES IN DIRECT SPENDING \1\
Estimated Budget Authority...... 10 20 20 21 11
Estimated Outlays............... 3 14 14 19 15
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Department of Commerce:
Office of Travel Promotion:
Estimated Authorization 4 6 6 6 6
Level..................
Estimated Outlays....... 3 5 5 6 6
Office of Travel and Tourism
Industries:
Estimated Authorization 5 9 14 15 17
Level..................
Estimated Outlays....... 4 8 13 14 16
Department of Homeland Security:
Additional CBP Officers:
Estimated Authorization 14 22 23 23 24
Level..................
Estimated Outlays....... 13 21 23 23 24
Improved Airport
Inspections:
Estimated Authorization 20 20 20 20 20
Level..................
Estimated Outlays....... 18 20 20 20 20
Total Changes
Estimated Authorization 43 57 63 64 67
Level..................
Estimated Outlays....... 38 54 61 63 66
------------------------------------------------------------------------
\1\ See Table 2 for changes in direct spending and revenues over the
2008-2017 period.
Gross assessments of about $20 million annually would be
partially offset by a loss of receipts from income and payroll
taxes of 25 percent. Because excise taxes and other indirect
business taxes reduce the tax base of income and payroll taxes,
higher amounts of those taxes would lead to reductions in
income and payroll tax revenues. As a result, CBO estimates
that enacting S. 1661 would increase net revenues by $62
million over the 2008-2012 period and $145 million over the
2008-2017 period.
Direct spending
CBO assumes that the Corporation would exercise its
borrowing authority in fiscal year 2008 to cover about $10
million in start-up and operating expenses. We assume that the
Corporation would begin collecting assessments in 2009 and that
it would spend the income from fees and assessments mostly in
the year they are collected. CBO estimates that enacting S.
1661 would increase direct spending by $3 million in 2008, $65
million over the 2008-2012 period, and $180 million over the
2008-2017 period.
TABLE 2.--CHANGES IN DIRECT SPENDING AND REVENUES UNDER S. 1661
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------------------------------------------------------------------------
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008-2012 2008-2017
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN REVENUES
Changes in Revenues..................... 0 15 15 16 16 16 16 17 17 17 62 145
CHANGES IN DIRECT SPENDING
Gross Changes in Direct Spending:
Estimated Budget Authority.......... 10 30 40 42 32 21 22 22 23 23 154 265
Estimated Outlays................... 3 24 34 40 36 27 23 22 22 21 137 252
Offsetting Receipts (DHS Visa Waiver
Fees):
Estimated Budget Authority.......... 0 -10 -20 -21 -21 0 0 0 0 0 -72 -72
Estimated Outlays................... 0 -10 -20 -21 -21 0 0 0 0 0 -72 -72
Net Changes in Direct Spending:
Estimated Budget Authority.......... 10 20 20 21 11 21 22 22 23 23 82 193
Estimated Outlays................... 3 14 14 19 15 27 23 22 22 21 65 180
--------------------------------------------------------------------------------------------------------------------------------------------------------
For fiscal years 2009 through 2012, funds collected through
an industry assessment (and any voluntary contributions) would
be available to the Corporation to spend on its authorized
activities and would be matched by a new fee that the
Department of Homeland Security (DHS) would collect from users
of the visa waiver program. Those fees would be available to
the Corporation only to the extent that the Corporation
provides matching funds from its assessments on industry
participants and voluntary contributions. In 2009, fees could
total up to 50 percent of private funds; in subsequent years,
fees would have to be matched dollar-for-dollar with private
funds. Based on its estimate that assessments would total $82
million over the 2009-2012 period, CBO estimates that the new
DHS fees would bring in $72 million during that period. Fees
collected under the visa waiver program are classified as
offsetting receipts (a credit against direct spending). CBO
assumes that the additional fees authorized by S. 1661 would
receive the same budgetary treatment.
Spending subject to appropriation
Section 7 of S. 1661 would create the Office of Travel
Promotion (OTP) to, among other things, serve as a liaison to
the Corporation for Travel Promotion and to produce and
distribute information about admission procedures for
international travelers. Based on information from DoC, CBO
estimates that the agency would hire 25 additional full-time
employees to set up the OTP and undertake the duties outlined
in the bill. CBO estimates that creating the OTP would cost $3
million in 2008 and $25 million over the 2008-2012 period,
assuming appropriation of the necessary amounts.
Section 8 would broaden the research activities of the
Office of Travel and Tourism Industries (OTTI) in the
Department of Commerce. The bill would require OTTI to expand
access to certain data, revise a survey of international travel
patterns, and develop state-by-state estimates of foreign
travel expenditures. Based on information from DoC, CBO
estimates that the new requirements would cost $4 million in
2008 and $55 million over the 2008-2012 period, assuming
appropriation of the necessary amounts.
Section 9 would direct DHS to hire an additional 200
Customs and Border Protection (CBP) officers during fiscal year
2008. Based on information from CBP, CBO estimates that the
increase in staff would cost about $22 million annually,
beginning in fiscal year 2009, including salaries, benefits,
training, equipment, and support costs.
Section 9 also would direct DHS to establish a program to
improve the inspection procedures and the treatment of
passengers arriving at U.S. airports from overseas. The program
would be implemented at the 20 airports with the highest number
of foreign visitors. Based on information from DHS, CBO
estimates that the program would cost $20 million annually
(about $1 million for each airport).
Estimated Impact on State, Local, and Tribal Governments:
S. 1661 contains no intergovernmental mandates as defined in
UMRA and would impose no costs on state, local, or tribal
governments.
Estimated Impact on the Private Sector: The bill would
authorize the Corporation to impose an annual assessment on
certain U.S. members of the travel and tourism industry,
provided industry members approve the assessment in a
referendum. In the event that such an assessment is approved,
S. 1661 would impose a private-sector mandate on the members of
the international travel and tourist industry who would be
required to pay the assessment. Based on information from
sources in the travel industry, CBO estimates that payments of
such assessments would total about $20 million per year, well
below the annual threshold for private-sector mandates
established by UMRA ($131 million in 2007, adjusted annually
for inflation).
Estimate prepared by: Federal Costs: Susan Willie and Mark
Grabowicz; Federal Revenues: Mark Booth; Impact on State,
Local, and Tribal Governments: Elizabeth Cove; Impact on the
Private Sector: Paige Piper/Bach.
Estimate approved by: Theresa Gullo, Deputy Assistant
Director for Budget Analysis; G. Thomas Woodward, Assistant
Director for Tax Analysis.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
NUMBER OF PERSONS COVERED
The formation of the Corporation would require
representatives of various sectors of the travel industry to
participate on its board of directors. The general travel and
tourism industry will not be impacted by S. 1661 directly,
unless the Corporation chose to initiate a referendum under
Section 6. At that point, impacted members of the travel and
tourism industry would participate in a referendum and, if an
assessment is approved, pay the assessment. Fees would be
assessed on users of the electronic travel authorization system
who are not U.S. citizens.
ECONOMIC IMPACT
S. 1661 is not expected to have an adverse impact on the
Nation's economy. Rather, promoting international travel to the
United States through the creation of the Corporation,
establishing an Under Secretary of Travel Promotion within the
DOC, and establishing a model port of entry program should
increase the number of international travelers to America,
which will result in economic growth in the travel industry.
PRIVACY
S. 1661 would have no anticipated impact on the privacy
rights of individuals.
PAPERWORK
In general, there will not be an increase in paper work for
members of the travel and tourism industry. If the Corporation
initiates a referendum and assessment under Section 6, then
affected companies would need to submit associated paperwork.
Section-by-Section Analysis
Section 1. Short Title; Table of Contents.
The section would cite the short title of the bill as the as
the ``Travel Promotion Act of 2007'' and provide a table of
contents.
Section 2. The Corporation for Travel Promotion.
The section would establish the Corporation for Travel
Promotion as a nonprofit corporation governed by a 15 member
board of directors appointed by the Secretary of Commerce. The
members would represent State and local interests; the Federal
government; the higher education community; the small business
community; hotels, restaurants, and retail businesses;
passenger air transportation; attractions and recreational
businesses; the intercity passenger railroad business; and car
rental businesses. The members of the board would be required
to have professional expertise in travel and international
travel promotion and marketing, and to broadly represent all
regions of the United States. No member of the board would be
considered a Federal employee by virtue of his or her service
on the board.
The board would appoint a President and other officers. No
political test or qualification shall be used in personnel
actions with respect to officers or employees of the
Corporation. The Corporation would be prohibited from
contributing to or otherwise supporting any political party or
candidate for elective public office.
The Committee further intends that the Corporation not engage
in activities to directly or indirectly influence funding
legislation.
The Corporation would be required to develop and implement a
plan to: (1) provide information to travelers, tour operators,
and other international travel stakeholders, including
materials provided by the Federal government concerning entry
requirements and other information that would allow travelers
to better navigate the process of entering the United States;
(2) counter and correct international misperceptions regarding
U.S. travel policy; (3) maximize the economic and diplomatic
benefits of travel to America through promotional activities;
(4) ensure that international travel benefits all 50 states and
the District of Columbia, including areas not traditionally
visited by international travelers; and (5) prioritize the use
of Corporation resources towards countries and potential
travelers that are most likely to travel to America. In order
to carry out its mission, the Corporation would be empowered to
contract with public and private entities, hire or accept
voluntary services of consultants and experts, and to take such
other actions as may be necessary. Promotional expenditures of
more than $25,000,000 would need to be authorized by a vote of
at least two-thirds of the board at a meeting at which eight of
more members are present.
Meetings of the board would have to be open to the public
with the limited exception that portions of a meeting may be
closed for the period of time necessary to preserve the
confidentiality of commercial or financial information, to
discuss personnel matters, or to discuss legal matters. An
independent accounting firm would have to conduct an annual
audit of the Corporation's operations, and the Corporation
would be required to provide the Comptroller General full and
complete access to its books and records.
Section 3. Accountability Measures.
The section would require the Corporation's board to
establish annual objectives for the Corporation subject to
approval by the Secretary of Commerce and establish a marketing
plan for each fiscal year. It also would be required to submit
an annual budget to the Secretary with an explanation of any
expenditure in excess of $5 million, which would be made
available to the public. The Corporation would submit an annual
report to the Secretary of Commerce for transmittal to Congress
detailing its operations, activities, financial conditions, and
accomplishments as well as an objective and quantifiable
measurement of the Corporation's progress on an objective-by-
objective basis and an explanation of the reason for any
failure to achieve an objective established by the board and
making appropriate recommendations.
Section 4. Matching Public and Private Funding.
The section would establish a fund in the Treasury known as
the Travel Promotion Fund (Fund). For FY 2008, the Corporation
would be permitted to borrow from the Treasury beginning on
October 1, 2007, up to $10 million to cover its initial
expenses and activities under the Act. The borrowed funds would
have to be repaid with interest by the Corporation before
October 1, 2012. Subsequently, the Secretary of Treasury would
transfer not more than $100,000,000 in fees collected pursuant
to section 5 of the Act to the Fund. Based on the amount of
private industry contributions raised by the Corporation, the
Secretary of the Treasury could distribute to the Corporation
matching moneys from the Fund. At least 20 percent of the
private-sector contributions would have to be in cash and
remaining contributions may be in-kind contributions such as
television advertising time, advertisement space, or services
calculated at the fair market value of such goods or services.
The Corporation would have the right to refuse any contribution
that is not useful or is inappropriate. For FY 2009, the
Corporation would provide matching funds from non-Federal
sources equal to 50 percent of the amount received from the
government. After FY 2009, the Corporation would provide
matching funds from non-Federal sources equal to 100 percent of
the amount received from the government. To the extent that
industry contributions entitle the Corporation to more matching
money than is available in the Fund in a given year, the value
of contributions would be carried forward for matching purposes
in subsequent years.
Section 5. Electronic Travel Authorization System.
The section would amend the Immigration and Nationality Act
to authorize the Secretary of Homeland Security, in
consultation with the Secretary of State, to develop and
implement a fully automated electronic travel authorization
system to collect such basic biographical information as the
Secretary of Homeland Security deems necessary to determine in
advance the eligibility of a foreign traveler to enter the
United States under the visa waiver program. The section
further would authorize the Secretary of Homeland Security to
charge users a fee to use the electronic travel authorization
system. The fee would be used to cover the costs of
administering the system and also include an assessment of no
more than $10 per user that would be transferred to the Fund.
The Secretary of Homeland Security, in consultation with the
Secretary of State, would prescribe regulations that provide
the period, not to exceed three years, during which a
determination of eligibility under the program would be valid.
The section would prohibit any judicial review of eligibility
determinations and require a report to Congress regarding the
implementation of the system. The section would also authorize
the appropriation of funds necessary to establish the
electronic travel authorization system.
Section 6. Assessment Authority.
The section would authorize the Corporation to impose an
annual assessment under specific conditions on certain sectors
of the private travel industry in the United States, other than
higher education, passenger air transportation business, and
small businesses. The initial assessment would be capped, in
the aggregate, at $20 million. Prior to initiating an
assessment, the Corporation would submit the proposed
assessment to the members of the industry impacted by the
referendum, and the assessment would have to be approved by a
majority of those members. In conducting the referendum, the
Corporation would be required to provide written or electronic
notice not less than 60 days before the date of the referendum,
describe the assessment, and determine the results of the
referendum based on a voting structure weighted according to
each business entity's relative share of the aggregate annual
U.S. international travel and tourism revenue per business
entity, treating all related entities as a single entity. The
Committee intends that the Corporation work with the DOC to
designate discrete sectors of the travel and tourism industry
as ``business entities'' for purpose of the referendum and to
use Federal government revenue estimates to assess the
aggregate annual U.S. international travel and tourism revenue
for each business entity. The intent of the weighted voting
structure is to allow businesses to influence the referendum in
a manner directly proportionate to the percent that they would
contribute to the related assessment. Business sectors with
greater international travel and tourism revenues would receive
greater weight in voting in proportion to the greater financial
burden they would contribute. The Committee further intends
that the Corporation would be responsible for organizing and
managing the process for notifying and polling the industry
members subject to an assessment. Only those industry members
who have been contacted and afforded the opportunity to
participate in the referendum would be subject to the
assessment. The Corporation would establish a means of
collecting the assessment and would be authorized to bring suit
in Federal court to compel compliance with a properly
authorized assessment. Pending disbursement of the funds
assessed, the Corporation would be allowed to invest the funds
in an interest-bearing account.
Section 7. Under Secretary of Commerce for Travel Promotion.
The section would establish the Office of Travel Promotion in
the Department of Commerce headed by the Under Secretary of
Travel Promotion. The Under Secretary would be a citizen of the
United States and have experience in a field directly related
to the promotion of travel in the United States. The Under
Secretary would serve as liaison to the Corporation, support
and develop programs to increase the number of international
visitors to the United States, work with the Corporation and
the Secretaries of State and Homeland Security to ensure that
international visitors are processed efficiently and in a
respectful manner, supervise activities of the OTTI, support
State, regional, and private sector initiatives to promote
travel to and within the United States, and work to enhance the
entry and departure experience for international visitors.
Within a year after the date of enactment, the Under Secretary
would transmit a report to Congress describing the Under
Secretary's work with the State Department and DHS to ensure
that international visitors are processed efficiently.
Section 8. Research Program.
The section would amend the International Travel Act of 1916
and require OTTI to expand its research and development
activities in support of promoting international travel to the
United States, including expanding access to official Mexican
travel surveys data, revising the Commerce Department's Survey
of International Travelers, developing estimates of
international travel exports on a State-by-State basis, and
evaluating the success of the Corporation in achieving the
objective set forth in the Act. It would also authorize such
sums as would be necessary to carry out this section.
Section 9. Model Ports-of-Entry.
The section would direct the Secretary of Homeland Security
to establish a model ports-of-entry program for the purpose of
providing a more efficient and welcoming international arrival
process and to implement the program initially at the 20 U.S.
international airports that have the highest number of foreign
visitors arriving annually as determined by the most recent
data collected by the CBP available on date of enactment. The
program would include enhanced queue management, assistance for
foreign visitors once they have been admitted to the United
States, and instructional videos. The section would further
direct the Secretary of Homeland Security, subject to
appropriations, to employ not fewer than an additional 200 CBP
officers not later than the end of FY 2008. The officers would
be used to address staff shortages at the 20 U.S. international
airports that have the highest number of foreign visitors
arriving annually.
Section 10. Definitions.
The section would define the terms ``Board'',
``Corporation'', ``fund'', and ``Secretary'' as used in the
Act.
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 CODE
TITLE 5
PART III--EMPLOYEES
SUBPART D. PAY AND ALLOWANCES
CHAPTER 53. PAY RATES AND SYSTEMS
Sec. 5313. Positions at level II
Level II of the Executive Schedule applies to the following
positions, for which the annual rate of basic pay shall be the
rate determined with respect to such level under chapter 11 of
title 2, as adjusted by section 5318 of this title:
Deputy Secretary of Defense.
Deputy Secretary of State.
Deputy Secretary of State for Management and
Resources.
Administrator, Agency for International Development.
Administrator of the National Aeronautics and Space
Administration.
Deputy Secretary of Veterans Affairs.
Deputy Secretary of Homeland Security.
Deputy Secretary of the Treasury.
Deputy Secretary of Transportation.
Chairman, Nuclear Regulatory Commission.
Chairman, Council of Economic Advisers.
Director of the Office of Science and Technology.
Director of Central Intelligence.
Secretary of the Air Force.
Secretary of the Army.
Secretary of the Navy.
Administrator, Federal Aviation Administration.
Director of the National Science Foundation.
Deputy Attorney General.
Deputy Secretary of Energy.
Deputy Secretary of Agriculture.
Director of the Office of Personnel Management.
Administrator, Federal Highway Administration.
Administrator of the Environmental Protection Agency.
Under Secretary of Defense for Acquisition,
Technology, and Logistics.
Deputy Secretary of Labor.
Deputy Director of the Office of Management and
Budget.
Independent Members, Thrift Depositor Protection
Oversight Board.
Deputy Secretary of Health and Human Services.
Deputy Secretary of the Interior.
Deputy Secretary of Education.
Deputy Secretary of Housing and Urban Development.
Deputy Director for Management, Office of Management
and Budget.
Director of the Office of Federal Housing Enterprise
Oversight, Department of Housing and Urban Development.
Deputy Commissioner of Social Security, Social
Security Administration.
Administrator of the Community Development Financial
Institutions Fund.
Deputy Director of National Drug Control Policy.
Members, Board of Governors of the Federal Reserve
System.
The Under Secretary of Transportation for Security.
Under Secretary of Transportation for Policy.
Chief Executive Officer, Millennium Challenge
Corporation.
Principal Deputy Director of National Intelligence.
Director of the National Counterterrorism Center.
Director of the National Counter Proliferation
Center.
Administrator of the Federal Emergency Management
Agency.
The Under Secretary of Commerce for Travel Promotion.
Immigration and Nationality Act
[8 U.S.C. 1187]
Sec. 1187. Visa waiver program for certain visitors
(a) Establishment of Program.--The Attorney General and the
Secretary of State are authorized to establish a program
(hereinafter in this section referred to as the ``program'')
under which the requirement of paragraph (7)(B)(i)(II) of
section 212(a) may be waived by the Attorney General, in
consultation with the Secretary of State and in accordance with
this section, in the case of an alien who meets the following
requirements:
(1) Seeking entry as tourist for 90 days or less.--
The alien is applying for admission during the program
as a nonimmigrant visitor (described in section
101(a)(15)(B)) for a period not exceeding 90 days.
(2) National of program country.--The alien is a
national of, and presents a passport issued by, a
country which--
(A) extends (or agrees to extend), either on
its own or in conjunction with one or more
other countries that are described in
subparagraph (B) and that have established with
it a common area for immigration admissions,
reciprocal privileges to citizens and nationals
of the United States, and
(B) is designated as a [pilot] program
country under subsection (c).
(3) Machine readable passport.--
(A) In general. Except as provided in
subparagraph (B), on or after October 1, 2003,
the alien at the time of application for
admission is in possession of a valid unexpired
machine-readable passport that satisfies the
internationally accepted standard for machine
readability.
(B) Limited waiver authority. For the period
beginning October 1, 2003, and ending September
30, 2007, the Secretary of State may waive the
requirement of subparagraph (A) with respect to
nationals of a program country (as designated
under subsection (c)), if the Secretary of
State finds that the program country--
(i) is making progress toward
ensuring that passports meeting the
requirement of subparagraph (A) are
generally available to its nationals;
and
(ii) has taken appropriate measures
to protect against misuse of passports
the country has issued that do not meet
the requirement of subparagraph (A).
(4) Executes immigration forms.--The alien before the
time of such admission completes such immigration form
as the Attorney General shall establish.
(5) Entry into the united states.--If arriving by sea
or air, the alien arrives at the port of entry into the
United States on a carrier, including any carrier
conducting operations under part 135 of title 14, Code
of Federal Regulations, or a noncommercial aircraft
that is owned or operated by a domestic corporation
conducting operations under part 91 of title 14, Code
of Federal Regulations which has entered into an
agreement with the Attorney General pursuant to
subsection (e). The Attorney General is authorized to
require a carrier conducting operations under part 135
of title 14, Code of Federal Regulations, or a domestic
corporation conducting operations under part 91 of that
title, to give suitable and proper bond, in such
reasonable amount and containing such conditions as the
Attorney General may deem sufficient to ensure
compliance with the indemnification requirements of
this section, as a term of such an agreement.
(6) Not a safety threat.--The alien has been
determined not to represent a threat to the welfare,
health, safety, or security of the United States.
(7) No previous violation.--If the alien previously
was admitted without a visa under this section, the
alien must not have failed to comply with the
conditions of any previous admission as such a
nonimmigrant.
(8) Round-trip ticket.--The alien is in possession of
a round-trip transportation ticket (unless this
requirement is waived by the Attorney General under
regulations or the alien is arriving at the port of
entry on an aircraft operated under part 135 of title
14, Code of Federal Regulations, or a noncommercial
aircraft that is owned or operated by a domestic
corporation conducting operations under part 91 of
title 14, Code of Federal Regulations).
(9) Automated system check.--The identity of the
alien has been checked using an automated electronic
database containing information about the
inadmissibility of aliens to uncover any grounds on
which the alien may be inadmissible to the United
States, and no such ground has been found.
Operators of aircraft under part 135 of title 14, Code of
Federal Regulations, or operators of noncommercial aircraft
that are owned or operated by a domestic corporation conducting
operations under part 91 of title 14, Code of Federal
Regulations, carrying any alien passenger who will apply for
admission under this section shall furnish such information as
the Attorney General by regulation shall prescribe as necessary
for the identification of any alien passenger being transported
and for the enforcement of the immigration laws. Such
information shall be electronically transmitted not less than
one hour prior to arrival at the port of entry for purposes of
checking for inadmissibility using the automated electronic
database.
(b) Waiver of rights.--An alien may not be provided a waiver
under the program unless the alien has waived any right--
(1) to review or appeal under this Act of an
immigration officer's determination as to the
admissibility of the alien at the port of entry into
the United States, or
(2) to contest, other than on the basis of an
application for asylum, any action for removal of the
alien.
(c) Designation of Program Countries.--
(1) In general.--The Attorney General, in
consultation with the Secretary of State, ``may
designate'' any country as a program country if it
meets the requirements of paragraph (2).
(2) Qualifications.--Except as provided in subsection
(f), a country may not be designated as a program
country unless the following requirements are met:
(A) Low nonimmigrant visa refusal rate.--
Either--
(i) the average number of refusals of
nonimmigrant visitor visas for
nationals of that country during--
(I) the two previous full
fiscal years was less than 2.0
percent of the total number of
nonimmigrant visitor visas for
nationals of that country which
were granted or refused during
those years; and
(II) either of such two
previous full fiscal years was
less than 2.5 percent of the
total number of nonimmigrant
visitor visas for nationals of
that country which were granted
or refused during that year; or
(ii) such refusal rate for nationals
of that country during the previous
full fiscal year was less than 3.0
percent.
(B) Machine readable passport program.--
(i) In general.--Subject to clause
(ii), the government of the country
certifies that it issues to its
citizens machine-readable passports
that satisfy the internationally
accepted standard for machine
readability.
(ii) Deadline for compliance for
certain countries.--In the case of a
country designated as a program country
under this subsection prior to May 1,
2000, as a condition on the
continuation of that designation, the
country--
(I) shall certify, not later
than October 1, 2000, that it
has a program to issue machine-
readable passports to its
citizens not later than October
1, 2003; and
(II) shall satisfy the
requirement of clause (i) not
later than October 1, 2003.
(C) Law enforcement and security interests.--
The Attorney General, in consultation with the
Secretary of State--
(i) evaluates the effect that the
country's designation would have on the
law enforcement and security interests
of the United States (including the
interest in enforcement of the
immigration laws of the United States
and the existence and effectiveness of
its agreements and procedures for
extraditing to the United States
individuals, including its own
nationals, who commit crimes that
violate United States law);
(ii) determines that such interests
would not be compromised by the
designation of the country; and
(iii) submits a written report to the
Committee on the Judiciary and the
Committee on International Relations of
the House of Representatives and the
Committee on the Judiciary and the
Committee on Foreign Relations of the
Senate regarding the country's
qualification for designation that
includes an explanation of such
determination.
(D) Reporting passport thefts.--The
government of the country certifies that it
reports to the United States Government on a
timely basis the theft of blank passports
issued by that country.
(3) Continuing and subsequent qualifications.--For
each fiscal year after the initial period--
(A) Continuing qualification.--In the case of
a country which was a program country in the
previous fiscal year, a country may not be
designated as a program country unless the sum
of--
(i) the total of the number of
nationals of that country who were
denied admission at the time of arrival
or withdrew their application for
admission during such previous fiscal
year as a nonimmigrant visitor, and
(ii) the total number of nationals of
that country who were admitted as
nonimmigrant visitors during such
previous fiscal year and who violated
the terms of such admission, was less
than 2 percent of the total number of
nationals of that country who applied
for admission as nonimmigrant visitors
during such previous fiscal year.
(B) New countries.--In the case of another
country, the country may not be designated as a
program country unless the following
requirements are met:
(i) Low nonimmigrant visa refusal
rate in previous 2-year period.--The
average number of refusals of
nonimmigrant visitor visas for
nationals of that country during the
two previous full fiscal years was less
than 2 percent of the total number of
nonimmigrant visitor visas for
nationals of that country which were
granted or refused during those years.
(ii) Low nonimmigrant visa refusal
rate in each of the 2 previous years.--
The average number of refusals of
nonimmigrant visitor visas for
nationals of that country during either
of such two previous full fiscal years
was less than 2.5 percent of the total
number of nonimmigrant visitor visas
for nationals of that country which
were granted or refused during that
year.
(4) Initial period. For purposes of paragraphs (2)
and (3), the term ``initial period'' means the period
beginning at the end of the 30-day period described in
subsection (b)(1) and ending on the last day of the
first fiscal year which begins after such 30-day
period.
(5) Written reports on continuing qualification;
designation terminations.--
(A) Periodic evaluations.--
(i) In general.--The Attorney
General, in consultation with the
Secretary of State, periodically (but
not less than once every 2 years)--
(I) shall evaluate the effect
of each program country's
continued designation on the
law enforcement and security
interests of the United States
(including the interest in
enforcement of the immigration
laws of the United States and
the existence and effectiveness
of its agreements and
procedures for extraditing to
the United States individuals,
including its own nationals,
who commit crimes that violate
United States law);
(II) shall determine, based
upon the evaluation in
subclause (I), whether any such
designation ought to be
continued or terminated under
subsection (d); and
(III) shall submit a written
report to the Committee on the
Judiciary and the Committee on
International Relations of the
House of Representatives and
the Committee on the Judiciary
and the Committee on Foreign
Relations of the Senate
regarding the continuation or
termination of the country's
designation that includes an
explanation of such
determination and the effects
described in subclause (I).
(ii) Effective date.--A termination
of the designation of a country under
this subparagraph shall take effect on
the date determined by the Attorney
General, in consultation with the
Secretary of State.
(iii) Redesignation.--In the case of
a termination under this subparagraph,
the Attorney General shall redesignate
the country as a program country,
without regard to subsection (f) or
paragraph (2) or (3), when the Attorney
General, in consultation with the
Secretary of State, determines that all
causes of the termination have been
eliminated.
(B) Emergency termination.--
(i) In general.--In the case of a
program country in which an emergency
occurs that the Attorney General, in
consultation with the Secretary of
State, determines threatens the law
enforcement or security interests of
the United States (including the
interest in enforcement of the
immigration laws of the United States),
the Attorney General shall immediately
terminate the designation of the
country as a program country.
(ii) Definition.--For purposes of
clause (i), the term ``emergency''
means--
(I) the overthrow of a
democratically elected
government;
(II) war (including
undeclared war, civil war, or
other military activity) on the
territory of the program
country;
(III) a severe breakdown in
law and order affecting a
significant portion of the
program country's territory;
(IV) a severe economic
collapse in the program
country; or
(V) any other extraordinary
event in the program country
that threatens the law
enforcement or security
interests of the United States
(including the interest in
enforcement of the immigration
laws of the United States) and
where the country's
participation in the program
could contribute to that
threat.
(iii) Redesignation.--The Attorney
General may redesignate the country as
a program country, without regard to
subsection (f) or paragraph (2) or (3),
when the Attorney General, in
consultation with the Secretary of
State, determines that--
(I) at least 6 months have
elapsed since the effective
date of the termination;
(II) the emergency that
caused the termination has
ended; and
(III) the average number of
refusals of nonimmigrant
visitor visas for nationals of
that country during the period
of termination under this
subparagraph was less than 3.0
percent of the total number of
nonimmigrant visitor visas for
nationals of that country which
were granted or refused during
such period.
(C) Treatment of nationals after
termination.--For purposes of this paragraph--
(i) nationals of a country whose
designation is terminated under
subparagraph (A) or (B) shall remain
eligible for a waiver under subsection
(a) until the effective date of such
termination; and
(ii) a waiver under this section that
is provided to such a national for a
period described in subsection (a)(1)
shall not, by such termination, be
deemed to have been rescinded or
otherwise rendered invalid, if the
waiver is granted prior to such
termination.
(6) Computation of visa refusal rates.--For purposes
of determining the eligibility of a country to be
designated as a program country, the calculation of
visa refusal rates shall not include any visa refusals
which incorporate any procedures based on, or are
otherwise based on, race, sex, or disability, unless
otherwise specifically authorized by law or regulation.
No court shall have jurisdiction under this paragraph
to review any visa refusal, the denial of admission to
the United States of any alien by the Attorney General,
the Secretary's computation of the visa refusal rate,
or the designation or nondesignation of any country.
(7) Visa waiver information.--
(A) In general.--In refusing the application
of nationals of a program country for United
States visas, or the applications of nationals
of a country seeking entry into the visa waiver
program, a consular officer shall not knowingly
or intentionally classify the refusal of the
visa under a category that is not included in
the calculation of the visa refusal rate only
so that the percentage of that country's visa
refusals is less than the percentage limitation
applicable to qualification for participation
in the visa waiver program.
(B) Reporting requirement.--On May 1 of each
year, for each country under consideration for
inclusion in the visa waiver program, the
Secretary of State shall provide to the
appropriate congressional committees--
(i) the total number of nationals of
that country that applied for United
States visas in that country during the
previous calendar year;
(ii) the total number of such
nationals who received United States
visas during the previous calendar
year;
(iii) the total number of such
nationals who were refused United
States visas during the previous
calendar year;
(iv) the total number of such
nationals who were refused United
States visas during the previous
calendar year under each provision of
this Act under which the visas were
refused; and
(v) the number of such nationals that
were refused under section 214(b) as a
percentage of the visas that were
issued to such nationals.
(C) Certification.--Not later than May 1 of
each year, the United States chief of mission,
acting or permanent, to each country under
consideration for inclusion in the visa waiver
program shall certify to the appropriate
congressional committees that the information
described in subparagraph (B) is accurate and
provide a copy of that certification to those
committees.
(D) Consideration of countries in the visa
waiver program.--Upon notification to the
Attorney General that a country is under
consideration for inclusion in the visa waiver
program, the Secretary of State shall provide
all of the information described in
subparagraph (B) to the Attorney General.
(E) Definition.--In this paragraph, the term
``appropriate congressional committees'' means
the Committee on the Judiciary and the
Committee on Foreign Relations of the Senate
and the Committee on the Judiciary and the
Committee on International Relations of the
House of Representatives.
(d) Authority.--Notwithstanding any other provision of this
section, the Attorney General, in consultation with the
Secretary of State, may for any reason (including national
security) refrain from waiving the visa requirement in respect
to nationals of any country which may otherwise qualify for
designation or may, at any time, rescind any waiver or
designation previously granted under this section.
(e) Carrier Agreements.--
(1) In general.--The agreement referred to in
subsection (a)(4) is an agreement between a carrier
(including any carrier conducting operations under part
135 of title 14, Code of Federal Regulations) or a
domestic corporation conducting operations under part
91 of that title and the Attorney General under which
the carrier (including any carrier conducting
operations under part 135 of title 14, Code of Federal
Regulations) or a domestic corporation conducting
operations under part 91 of that title agrees, in
consideration of the waiver of the visa requirement
with respect to a nonimmigrant visitor under the
program--
(A) to indemnify the United States against
any costs for the transportation of the alien
from the United States if the visitor is
refused admission to the United States or
remains in the United States unlawfully after
the 90-day period described in subsection
(a)(1)(A);
(B) to submit daily to immigration officers
any immigration forms received with respect to
nonimmigrant visitors provided a waiver under
the program;
(C) to be subject to the imposition of fines
resulting from the transporting into the United
States of a national of a designated country
without a passport pursuant to regulations
promulgated by the Attorney General; and
(D) to collect, provide, and share passenger
data as required under subsection (h)(1)(B).
(2) Termination of agreements.--The Attorney General
may terminate an agreement under paragraph (1) with
five days' notice to the carrier (including any carrier
conducting operations under part 135 of title 14, Code
of Federal Regulations) or a domestic corporation
conducting operations under part 91 of that title for
the failure by a carrier (including any carrier
conducting operations under part 135 of title 14, Code
of Federal Regulations) or a domestic corporation
conducting operations under part 91 of that title to
meet the terms of such agreement.
(3) Business aircraft requirements.--
(A) In general.--For purposes of this
section, a domestic corporation conducting
operations under part 91 of title 14, Code of
Federal Regulations that owns or operates a
noncommercial aircraft is a corporation that is
organized under the laws of any of the States
of the United States or the District of
Columbia and is accredited by or a member of a
national organization that sets business
aviation standards. The Attorney General shall
prescribe by regulation the provision of such
information as the Attorney General deems
necessary to identify the domestic corporation,
its officers, employees, shareholders, its
place of business, and its business activities.
(B) Collections.--In addition to any other
fee authorized by law, the Attorney General is
authorized to charge and collect, on a periodic
basis, an amount from each domestic corporation
conducting operations under part 91 of title
14, Code of Federal Regulations, for
nonimmigrant visa waiver admissions on
noncommercial aircraft owned or operated by
such domestic corporation equal to the total
amount of fees assessed for issuance of
nonimmigrant visa waiver arrival/departure
forms at land border ports of entry. All fees
collected under this paragraph shall be
deposited into the Immigration User Fee Account
established under section 286(h).
(f) Duration and Termination of Designation.--
(1) In general.--
(A) Determination and notification of
disqualification rate.--Upon determination by
the Attorney General that a program country's
disqualification rate is 2 percent or more, the
Attorney General shall notify the Secretary of
State.
(B) Probationary status.--If the program
country's disqualification rate is greater than
2 percent but less than 3.5 percent, the
Attorney General shall place the program
country in probationary status for a period not
to exceed 2 full fiscal years following the
year in which the determination under
subparagraph (A) is made.
(C) Termination of designation.--Subject to
paragraph (3), if the program country's
disqualification rate is 3.5 percent or more,
the Attorney General shall terminate the
country's designation as a program country
effective at the beginning of the second fiscal
year following the fiscal year in which the
determination under subparagraph (A) is made.
(2) Termination of probationary status.--
(A) In general.--If the Attorney General
determines at the end of the probationary
period described in paragraph (1)(B) that the
program country placed in probationary status
under such paragraph has failed to develop a
machine-readable passport program as required
by section (c)(2)(C), or has a disqualification
rate of 2 percent or more, the Attorney General
shall terminate the designation of the country
as a program country. If the Attorney General
determines that the program country has
developed a machine-readable passport program
and has a disqualification rate of less than 2
percent, the Attorney General shall redesignate
the country as a program country.
(B) Effective date.--A termination of the
designation of a country under subparagraph (A)
shall take effect on the first day of the first
fiscal year following the fiscal year in which
the determination under such subparagraph is
made. Until such date, nationals of the country
shall remain eligible for a waiver under
subsection (a).
(3) Nonapplicability of certain provisions.--
Paragraph (1)(C) shall not apply unless the total
number of nationals of a program country described in
paragraph (4)(A) exceeds 100.
(4) Definition.--For purposes of this subsection, the
term ``disqualification rate'' means the percentage
which--
(A) the total number of nationals of the
program country who were--
(i) denied admission at the time of
arrival or withdrew their application
for admission during the most recent
fiscal year for which data are
available; and
(ii) admitted as nonimmigrant
visitors during such fiscal year and
who violated the terms of such
admission; bears to
(B) the total number of nationals of such
country who applied for admission as
nonimmigrant visitors during such fiscal year.
(5) Failure to report passport thefts.--If the
Attorney General and the Secretary of State jointly
determine that the program country is not reporting the
theft of blank passports, as required by subsection
(c)(2)(D), the Attorney General shall terminate the
designation of the country as a program country.
(g) Visa Application Sole Method To Dispute Denial of Waiver
Based on a Ground of Inadmissibility.--In the case of an alien
denied a waiver under the program by reason of a ground of
inadmissibility described in section 212(a) that is discovered
at the time of the alien's application for the waiver or
through the use of an automated electronic database required
under subsection (a)(9), the alien may apply for a visa at an
appropriate consular office outside the United States. There
shall be no other means of administrative or judicial review of
such a denial, and no court or person otherwise shall have
jurisdiction to consider any claim attacking the validity of
such a denial.
(h) Use of Information Technology Systems.--
(1) Automated entry-exit control system.--
(A) System.--Not later than October 1, 2001,
the Attorney General shall develop and
implement a fully automated entry and exit
control system that will collect a record of
arrival and departure for every alien who
arrives and departs by sea or air at a port of
entry into the United States and is provided a
waiver under the program.
(B) Requirements.--The system under
subparagraph (A) shall satisfy the following
requirements:
(i) Data collection by carriers.--Not
later than October 1, 2001, the records
of arrival and departure described in
subparagraph (A) shall be based, to the
maximum extent practicable, on
passenger data collected and
electronically transmitted to the
automated entry and exit control system
by each carrier that has an agreement
under subsection (a)(4).
(ii) Data provision by carriers.--Not
later than October 1, 2002, no waiver
may be provided under this section to
an alien arriving by sea or air at a
port of entry into the United States on
a carrier unless the carrier is
electronically transmitting to the
automated entry and exit control system
passenger data determined by the
Attorney General to be sufficient to
permit the Attorney General to carry
out this paragraph.
(iii) Calculation.--The system shall
contain sufficient data to permit the
Attorney General to calculate, for each
program country and each fiscal year,
the portion of nationals of that
country who are described in
subparagraph (A) and for whom no record
of departure exists, expressed as a
percentage of the total number of such
nationals who are so described.
(C) Reporting.--
(i) Percentage of nationals lacking
departure record.--As part of the
annual report required to be submitted
under section 110(e)(1) of the Illegal
Immigration Reform and Immigrant
Responsibility Act of 1996, the
Attorney General shall include a
section containing the calculation
described in subparagraph (B)(iii) for
each program country for the previous
fiscal year, together with an analysis
of that information.
(ii) System effectiveness.--Not later
than December 31, 2004, the Attorney
General shall submit a written report
to the Committee on the Judiciary of
the United States House of
Representatives and of the Senate
containing the following:
(I) The conclusions of the
Attorney General regarding the
effectiveness of the automated
entry and exit control system
to be developed and implemented
under this paragraph.
(II) The recommendations of
the Attorney General regarding
the use of the calculation
described in subparagraph
(B)(iii) as a basis for
evaluating whether to terminate
or continue the designation of
a country as a program country.
The report required by this
clause may be combined with the
annual report required to be
submitted on that date under
section 110(e)(1) of the
Illegal Immigration Reform and
Immigrant Responsibility Act of
1996.
(2) Automated data sharing system.--
(A) System.--The Attorney General and the
Secretary of State shall develop and implement
an automated data sharing system that will
permit them to share data in electronic form
from their respective records systems regarding
the admissibility of aliens who are nationals
of a program country.
(B) Requirements.--The system under
subparagraph (A) shall satisfy the following
requirements:
(i) Supplying information to
immigration officers conducting
inspections at ports of entry.--Not
later than October 1, 2002, the system
shall enable immigration officers
conducting inspections at ports of
entry under section 235 to obtain from
the system, with respect to aliens
seeking a waiver under the program--
(I) any photograph of the
alien that may be contained in
the records of the Department
of State or the Service; and
(II) information on whether
the alien has ever been
determined to be ineligible to
receive a visa or ineligible to
be admitted to the United
States.
(ii) Supplying photographs of
inadmissible aliens.--The system shall
permit the Attorney General
electronically to obtain any photograph
contained in the records of the
Secretary of State pertaining to an
alien who is a national of a program
country and has been determined to be
ineligible to receive a visa.
(iii) Maintaining records on
applications for admission.--The system
shall maintain, for a minimum of 10
years, information about each
application for admission made by an
alien seeking a waiver under the
program, including the following:
(I) The name or Service
identification number of each
immigration officer conducting
the inspection of the alien at
the port of entry.
(II) Any information
described in clause (i) that is
obtained from the system by any
such officer.
(III) The results of the
application.
(3) Electronic travel authorization system.--
(A) System.--The Secretary of Homeland
Security, in consultation with the Secretary of
State, is authorized to develop and implement a
fully automated electronic travel authorization
system to collect such basic biographical
information as the Secretary of Homeland
Security determines to be necessary to
determine, in advance of travel, the
eligibility of an alien to travel to the United
States under the visa waiver program.
(B) Fees.--The Secretary of Homeland Security
may charge a fee for the use of the system,
which shall be--
(i) set at a level that will ensure
recovery of the full costs of providing
and administering the system;
(ii) available to pay the costs
incurred to administer the system; and
(iii) include an amount, initially
not more than $10, for transfer to the
Travel Promotion Fund established by
section 4 of the Travel Promotion Act
of 2007 necessary to ensure that the
Corporation for Travel Promotion
established by section 2 of that Act is
fully funded.
(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 3 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
that an alien is eligible to travel to
the United States under the visa waiver
program is not a determination that the
alien is admissible to the United
States.
(iii) 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 the Congress.
International Travel Act of 1961
TITLE II--DUTIES
SEC. 201. POWERS AND DUTIES OF SECRETARY OF COMMERCE
[22 U.S.C. 2122]
In order to carry out the national tourism policy established
in section 101(b) and by the United States National Tourism
Organization Act of 1996, the Secretary of [Commerce (hereafter
in this Act referred to as the ``Secretary'')] Commerce, acting
through the Under Secretary for Travel Promotion, shall develop
and implement a comprehensive plan to perform critical tourism
functions which, in the determination of the Secretary, are not
being carried out by the United States National Tourism
Organization or other private sector entities or State
governments. Such plan may include programs to--
(1) collect and publish comprehensive international
travel and tourism statistics and other marketing
information;
(2) design, implement, and publish international
travel and tourism forecasting models;
(3) facilitate the reduction or elimination of
barriers to international travel and tourism; and
(4) work with the United States National Tourism
Organization, the Tourism Policy Council, State tourism
agencies, and Federal agencies in--
(A) coordinating the Federal implementation
of a national travel and tourism policy;
(B) representing the United States'
international travel and tourism interests to
foreign governments; and
(C) maintaining United States participation
in international travel and tourism trade shows
and fairs until such activities can be
transferred to such Organization and other
private sector entities.
SEC. 202. OFFICE OF TRAVEL PROMOTION.
(a) Office Established.--There is established within the
Department of Commerce an office to be known as the Office of
Travel Promotion.
(b) Under Secretary for Travel Promotion.--
(1) In general.--The head of the Office shall be the
Under Secretary of Commerce for Travel Promotion. The
Under Secretary shall be appointed by the President, by
and with the advice and consent of the Senate.
(2) Qualifications.--The Under Secretary shall--
(A) be a citizen of the United States; and
(B) have experience in a field directly
related to the promotion of travel in the
United States.
(3) Limitation on investments.--The Under Secretary
may not own stock in, or have a direct or indirect
beneficial interest in, a corporation or other
enterprise engaged in the travel, transportation, or
hospitality business or in a corporation or other
enterprise that owns or operates theme park or other
entertainment facility.
(c) Function.--The Under Secretary shall--
(1) serve as liaison to the Corporation for Travel
Promotion established by section 2 of the Travel
Promotion Act of 2007 and support and encourage the
development of programs to increase the number of
international visitors to the United States for
business, leisure, educational, medical, exchange, and
other purposes;
(2) work with the Corporation, the Secretary of
State, and the Secretary of Homeland Security--
(A) to disseminate information more
effectively to potential international visitors
about documentation and procedures required for
admission to the United States as a visitor;
and
(B) to ensure that arriving international
visitors are processed efficiently and in a
welcoming and respectful manner;
(3) support State, regional, and private sector
initiatives to promote travel to and within the United
States;
(4) supervise the operations of the Office of Travel
and Tourism Industries; and
(5) enhance the entry and departure experience for
international visitors.
(d) Reports to Congress.--Within a year after the date of
enactment of the Travel Promotion Act of 2007, and periodically
thereafter as appropriate, the Under Secretary shall transmit a
report to the Senate Committee on Commerce, Science, and
Transportation and the House of Representatives Committee on
Energy and Commerce describing the Under Secretary's work with
the Corporation, the Secretary of State, and the Secretary of
Homeland Security to carry out subsection (c)(2).
SEC. 203. RESEARCH PROGRAM.
(a) In General.--The Office of Travel and Tourism Industries
shall expand and continue its research and development
activities in connection with the promotion of international
travel to the United States, including--
(1) expanding access to the official Mexican travel
surveys data to provide the States with traveler
characteristics and visitation estimates for targeted
marketing programs;
(2) revising the Commerce Department's Survey of
International Travelers questionnaire and report
formats to accommodate a new survey instrument,
expanding the respondent base, improving response
rates, and improving market coverage;
(3) developing estimates of international travel
exports (expenditures) on a State-by-State basis to
enable each State to compare its comparative position
to national totals and other States;
(4) evaluate the success of the Corporation in
achieving its objectives and carrying out the purposes
of the Travel Promotion Act of 2007; and
(5) research to support the annual report required by
section 202(d) of this Act.
(b) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary of Commerce for fiscal years
2008 through 2012 such sums as may be necessary to carry out
this section.
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