Report text available as:

  • TXT
  • PDF   (PDF provides a complete and accurate display of this text.) Tip ?

113th Congress                                            Rept. 113-542
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

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



 
      TRAVEL PROMOTION, ENHANCEMENT, AND MODERNIZATION ACT OF 2014

                                _______
                                

 July 22, 2014.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

         Mr. Upton, from the Committee on Energy and Commerce, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 4450]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 4450) to extend the Travel Promotion Act of 
2009, and for other purposes, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     3
Background and Need for Legislation..............................     3
Hearings.........................................................     4
Committee Consideration..........................................     5
Committee Votes..................................................     5
Committee Oversight Findings.....................................     5
Statement of General Performance Goals and Objectives............     6
New Budget Authority, Entitlement Authority, and Tax Expenditures     6
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......     6
Committee Cost Estimate..........................................     6
Congressional Budget Office Estimate.............................     6
Federal Mandates Statement.......................................     8
Duplication of Federal Programs..................................     8
Disclosure of Directed Rule Makings..............................     9
Advisory Committee Statement.....................................     9
Applicability to Legislative Branch..............................     9
Section-by-Section Analysis of the Legislation...................     9
Changes in Existing Law Made by the Bill, as Reported............    10
Exchange of Letters with Additional Committees of Referral.......    16

                               Amendment

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Travel Promotion, Enhancement, and 
Modernization Act of 2014''.

SEC. 2. BOARD OF DIRECTORS.

  Subsection (b)(2)(A) of the Travel Promotion Act of 2009 (22 U.S.C. 
2131(b)(2)(A)) is amended--
          (1) in the matter preceding clause (i)--
                  (A) in the first sentence, by striking ``promotion 
                and marketing'' and inserting ``promotion or 
                marketing''; and
                  (B) by inserting after the first sentence the 
                following: ``At least 5 members of the board shall have 
                experience working in United States multinational 
                entities with marketing budgets. At least 2 members of 
                the board shall be audit committee financial experts 
                (as defined by the Securities and Exchange Commission 
                in accordance with section 407 of Public Law 107-204 
                (15 U.S.C. 7265)). All members of the board shall be a 
                current or former chief executive officer, chief 
                financial officer, or chief marketing officer, or have 
                held an equivalent management position.''; and
          (2) in clause (x), by striking ``intercity passenger railroad 
        business'' and inserting ``land or sea passenger transportation 
        sector''.

SEC. 3. ANNUAL REPORT TO CONGRESS.

  Subsection (c)(3) of the Travel Promotion Act of 2009 (22 U.S.C. 
2131(c)(3)) is amended--
          (1) in subparagraph (F), by striking ``and'' at the end;
          (2) by redesignating subparagraph (G) as subparagraph (I); 
        and
          (3) by inserting after subparagraph (F) the following:
                  ``(G) a description of, and rationales for, the 
                Corporation's efforts to focus on specific countries 
                and populations;
                  ``(H)(i) a description of, and rationales for, the 
                Corporation's combination of media channels employed in 
                meeting the promotional objectives of its marketing 
                campaign;
                  ``(ii) the ratio in which such channels are used; and
                  ``(iii) a justification for the use and ratio of such 
                channels; and''.

SEC. 4. BIANNUAL REVIEW OF PROCEDURES TO DETERMINE FAIR MARKET VALUE OF 
                    GOODS AND SERVICES.

  Subsection (d)(3) of the Travel Promotion Act of 2009 (22 U.S.C. 
2131(d)(3)) is amended--
          (1) in subparagraph (B)(ii), by striking ``80 percent'' and 
        inserting ``70 percent''; and
          (2) by adding at the end the following:
                  ``(E) Maintenance of an in-kind contributions 
                policy.--The Corporation shall maintain an in-kind 
                contributions policy.
                  ``(F) Formalized procedures for in-kind contributions 
                policy.--Not later than 90 days after the date of 
                enactment of the Travel Promotion, Enhancement, and 
                Modernization Act of 2014, the Secretary of Commerce, 
                in coordination with the Corporation, shall establish 
                formal, publicly available procedures specifying time 
                frames and conditions for--
                          ``(i) making and agreeing to revisions of the 
                        Corporation's in-kind contributions policy; and
                          ``(ii) addressing and resolving disagreements 
                        between the Corporation and its partners, 
                        including the Secretary of Commerce, regarding 
                        the in-kind contributions policy.
                  ``(G) Biannual review of procedures to determine fair 
                market value of goods and services.--The Corporation 
                and the Secretary of Commerce (or their designees) 
                shall meet on a biannual basis to review the procedures 
                to determine the fair market value of goods and 
                services received from non-Federal sources by the 
                Corporation under subparagraph (B).''.

SEC. 5. EXTENSION OF TRAVEL PROMOTION ACT OF 2009.

  (a) In General.--The Travel Promotion Act of 2009 (22 U.S.C. 2131) is 
amended--
          (1) in subsection (b)(5)(A)(iv), by striking ``all States and 
        the District of Columbia'' and inserting ``all States and 
        territories of the United States and the District of 
        Columbia,''; and
          (2) in subsection (d)--
                  (A) in paragraph (2)(B), by striking ``2015'' and 
                inserting ``2020''; and
                  (B) in paragraph (4)(B), by striking ``fiscal year 
                2011, 2012, 2013, 2014, or 2015'' and inserting ``each 
                of the fiscal years 2011 through 2020''.
  (b) Sunset of Travel Promotion Fund Fee.--Section 217(h)(3)(B)(iii) 
of the Immigration and Nationality Act (8 U.S.C. 1187(h)(3)(B)(iii)) is 
amended by striking ``September 30, 2015'' and inserting ``September 
30, 2020''.

SEC. 6. ACCOUNTABILITY; PROCUREMENT REQUIREMENTS.

  The Travel Promotion Act of 2009 (22 U.S.C. 2131), as amended by this 
Act, is further amended--
          (1) by redesignating subsections (e), (f), (g), and (h) as 
        subsections (h), (e), (i), and (j), respectively; and
          (2) in paragraph (2) of subsection (c), by striking 
        ``$5,000,000'' and inserting ``$500,000'';
          (3) by inserting after subsection (e), as redesignated, the 
        following:
  ``(f) Accountability.--
          ``(1) Performance plans and measures.--Not later than 90 days 
        after the date of the enactment of the Travel Promotion, 
        Enhancement, and Modernization Act of 2014, the Corporation 
        shall--
                  ``(A) establish performance metrics including, time 
                frames, evaluation methodologies, and data sources for 
                measuring--
                          ``(i) the effectiveness of marketing efforts 
                        by the Corporation, including its progress in 
                        achieving the long-term goals of increased 
                        traveler visits to and spending in the United 
                        States;
                          ``(ii) whether increases in visitation and 
                        spending have occurred in response to external 
                        influences, such as economic conditions or 
                        exchange rates, rather than in response to the 
                        efforts of the Corporation; and
                          ``(iii) any cost or benefit to the economy of 
                        the United States; and
                  ``(B) conduct periodic program evaluations in 
                response to the data resulting from measurements under 
                subparagraph (A).
          ``(2) GAO accountability.--Not later than 60 days after the 
        date on which the Corporation receives a report from the 
        Government Accountability Office with recommendations for the 
        Corporation, the Corporation shall submit a report to Congress 
        that describes the actions taken by the Corporation in response 
        to the recommendations in such report.
  ``(g) Procurement Requirements.--The Corporation shall--
          ``(1) establish a competitive procurement process; and
          ``(2) certify in its annual report to Congress under 
        subsection (c)(3) that any contracts entered into were in 
        compliance with the established competitive procurement 
        process.''.

SEC. 7. REPEAL OF ASSESSMENT AUTHORITY.

  The Travel Promotion Act of 2009 (22 U.S.C. 2131), as amended by this 
Act, is further amended by striking subsection (e) (as redesignated by 
section 6(1) of this Act).

                          Purpose and Summary

    The purpose of H.R. 4450 is to reauthorize Brand USA, a 
public-private partnership originally created by the Travel 
Promotion Act of 2009 (``TPA''), through 2020. Specifically, 
H.R. 4450 will increase transparency and accountability metrics 
for Brand USA in executing its mission of encouraging increased 
international visitation to the United States and to grow 
America's share of the global travel market at no cost to 
taxpayers. The current program is funded through fiscal year 
(FY) 2015, and public contributions are capped at $100 million 
per year.

                  Background and Need for Legislation

    Brand USA is responsible for executing the first global 
marketing effort to promote the U.S. as a premier travel 
destination and communicate U.S. entry and exit policies and 
procedures, and identify and correct misconceptions about those 
policies.\1\ As a public-private partnership, Brand USA is 
funded by a combination of fees paid by international travelers 
to the Department of Homeland Security's Electronic System for 
Travel Authorization (ESTA) program and, at a minimum, 100 
percent matching non-public funds contributed by travel-
industry partners.\2\ Brand USA's original five-year 
authorization expires in FY 2015. In addition to programmatic 
and governance changes to strengthen Brand USA, H.R. 4450 
reauthorizes the program through FY 2020.
---------------------------------------------------------------------------
    \1\Brand USA, Frequently Asked Questions, available at http://
www.thebrandusa.com/Help-FAQs#sthash.NBc82V6K.dpuf.
    \2\In 2013, 339 travel-industry partners contributed $139 million 
in services and cash to Brand USA. Michael Scaturro, ``Rebranding 
America: Can the U.S. Sell Itself to International Tourists?' The 
Atlantic, published January 14, 2014, 5:02 pm ET, available at http://
www.theatlantic.com/international/archive/2014/01/rebranding-america-
can-the-us-sell-itself-to-international-tourists/283061/.
---------------------------------------------------------------------------
    The travel industry is a major economic driver, and tourism 
is an integral part of the U.S. economy. Reauthorizing Brand 
USA will help market the United States as a world-class 
destination, and continue to attract visitors and economic 
growth to local communities.
    In 2013, one billion people traveled internationally.\3\ 
The international travel market is expected to reach 1.7 
billion by 2020.\4\ Brand USA allows the diverse destinations 
and attractions of the U.S. to coordinate marketing efforts in 
an efficient and effective program under one brand to reach 
this significant and growing market of international travelers.
---------------------------------------------------------------------------
    \3\UN World Tourism Organization. ``International Tourism Exceeds 
Expectations with Arrivals Up by 52 million in 2013,'' January 20, 
2014. Available at http://media.unwto.org/press-release/2014-01-20/
international-tourism-exceeds-expectations-arrivals-52-million-2013.
    \4\U.S Travel Association. ``Brand USA: Working for all of US,'' 
2014. Available at http://www.ustravel.org/sites/default/files/page/
2009/09/BUSA_Report_FINAL.pdf.
---------------------------------------------------------------------------
    In 2013, Brand USA's efforts attracted 1.1 million 
additional visitors to the United States.\5\ These additional 
visitors represent a 2.3 percent increase over expected tourism 
growth to the U.S., and they spent $3.4 billion.\6\ This 
increase in international visitor spending directly supported 
nearly 28,000 jobs, generated $7.9 billion in business sales, 
and contributed over $972 million in Federal, State, and local 
taxes. A recent analysis performed by the independent firm 
Oxford Economics reports Brand USA has achieved a marketing 
return on investment of 47:1.\7\
---------------------------------------------------------------------------
    \5\Id.
    \6\Oxford Economics. ``The Return on Investment of Brand USA 
Marketing: 2013 Fiscal Year Analysis,'' February 2014. Available at 
http://thebrandusa.com/ /media/Files/Key%20Dox/2014/ROI%20Results/
Brand%20USA%20ROI%20FY2013%20Final.pdf.
    \7\Id.
---------------------------------------------------------------------------
    Reauthorizing Brand USA will ensure that the U.S.: (1) 
remains competitive in the international tourism market; (2) 
continues to attract international travelers; and (3) tourism 
economy continues to grow and expand delivering its benefits 
and jobs across the country.

                                Hearings

    The Subcommittee on Commerce, Manufacturing, and Trade held 
a hearing on ``Vacation Nation: How Tourism Benefits our 
Economy'' on May 7, 2013. The Subcommittee received testimony 
from:
       Roger Dow, President and CEO, U.S. Travel 
Association;
        Kathleen Matthews, Executive Vice President and 
Chief Global Communications and Public Affairs Officer, 
Marriott International, Inc.;
        Brian Rothery, Assistant Vice President, 
Government Affairs, Enterprise Holdings;
        Lori Gaytan, Senior Vice President Americas HR 
and Global Reward, InterContinental Hotels Group;
        Hudson Riehle, Senior Vice President Research 
and Knowledge Group, National Restaurant Association;
        J. William Seccombe, President and CEO, Visit 
Florida;
        Sharon Zadra, Board Member, Reno-Sparks 
Convention and Visitors Authority, and Councilwoman, City of 
Reno, NV;
        Gina Speckman, Executive Director, Chicago's 
North Shore Convention and Visitors Bureau;
        Ralph Witsell, Executive Director, Discover 
Torrance Visitors Bureau; and
        Beverly Nicholson-Doty, Commissioner, U.S. 
Virgin Islands Department of Tourism.

                        Committee Consideration

    On July 10, 2013, the Subcommittee on Commerce, 
Manufacturing, and Trade met in open markup session and 
forwarded H.R. 4450, as amended, to the full Committee, by a 
recorded vote of 22 yeas and 0 nays. The Subcommittee adopted 
two amendments by voice vote. The first amendment, offered by 
Rep. Bilirakis and Rep. Welch, repealed the assessment 
authority codified at 22 U.S.C. 2131(f) of current law. The 
second amendment, offered by Rep. Schakowsky, added governance 
procedures to the Travel Promotion Act, including performance 
metrics and changes to the reporting threshold regarding Brand 
USA expenditures.
    On July 14, 2014 and June 15, 2014, the Committee on Energy 
and Commerce met in open markup session. During the markup, an 
amendment offered by Rep. Bilirakis and Rep. Schakowsky to 
decrease the percentage of in-kind contributions private 
industry can make to meet the matching funding requirement to 
70 percent was adopted by a voice vote. A motion by Mr. Upton 
to order H.R. 4450, reported to the House, as amended, was 
agreed to by a voice.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. 
There were no record votes taken in connection with ordering 
H.R. 4450 reported. A motion by Mr. Upton to order H.R. 4450 
reported to the House, as amended, was agreed to by a voice 
vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a hearing and made 
findings that are reflected in this report.

         Statement of General Performance Goals and Objectives

    The goal of the legislation is to reauthorize the Brand USA 
travel promotion program to promote the United States as a 
tourism destination and attract international visitors.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
4450 would result in no new or increased budget authority, 
entitlement authority, or tax expenditures or revenues.

       Earmark, Limited Tax Benefits, and Limited Tariff Benefits

    In compliance with clause 9(e), 9(f), and 9(g) of rule XXI 
of the Rules of the House of Representatives, the Committee 
finds that H.R. 4450 contains no earmarks, limited tax 
benefits, or limited tariff benefits.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 18, 2014.
Hon. Fred Upton,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4450, the Travel 
Promotion, Enhancement, and Modernization Act of 2014.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Susan Willie.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 4450--Travel Promotion, Enhancement, and Modernization Act of 2014

    Summary: H.R. 4450 would extend the provisions of the 
Travel Promotion Act of 2009 (Public Law 111-145), which 
established the Corporation for Travel Promotion (also known as 
Brand USA), through September 30, 2020, and impose new 
performance and procurement requirements on the corporation. 
The bill also would extend the authority of U.S. Customs and 
Border Protection (CBP) to collect travel promotion fees from 
certain foreign individuals traveling to the United States. 
Those fees are used to partially fund Brand USA.
    CBO estimates that enacting H.R. 4450 would increase direct 
spending by $500 million and revenues by $731 million over the 
2015-2024 period, resulting in a net decrease in the deficit of 
$231 million over the 10-year period. Pay-as-you-go procedures 
apply because enacting the legislation would affect direct 
spending and revenues. CBO estimates that implementing H.R. 
4450 would not significantly affect discretionary spending.
    H.R. 4450 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary effect of H.R. 4450 is shown in the following table. 
The costs of this legislation fall within budget function 370 
(commerce and housing credit).

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

Estimated Budget Authority........................      0      100      100      100      100      100      0      0      0      0       400        500

Estimated Outlays.................................      0       80      100      100      100      100     20      0      0      0       380        500
                                                                   CHANGES IN REVENUES

Estimated Revenues................................      0      138      142      146      150      155      0      0      0      0       576        731

                                NET INCREASE OR DECREASE (-) IN THE DEFICIT FROM CHANGES IN DIRECT SPENDING AND REVENUES

Effect on the Deficit.............................      0      -58      -42      -46      -50      -55     20      0      0      0      -196       -231
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Basis of estimate: Under current law, Brand USA may receive 
federal funding, up to $100 million each year through the end 
of fiscal year 2015, from fees collected from certain foreign 
individuals traveling to the United States. For those funds to 
be available, Brand USA must generate an equal amount of 
matching contributions from private sources; at least 20 
percent of those contributions must be in cash, the remainder 
in goods or services. Based on information from Brand USA, CBO 
expects that the entity will meet the matching requirements to 
receive the full amount of funding available under current law. 
CBO expects that the cash contributions received by Brand USA 
would be recorded in the budget as offsetting receipts (a 
credit against direct spending) and fully spent.

Direct spending

    H.R. 4450 would extend the availability of federal funds to 
support Brand USA's efforts to promote tourism in the United 
States through September 30, 2020. The bill also would increase 
the percentage of private contributions that must be in cash 
rather than goods or services from 20 percent to 30 percent of 
total contributions each year. Finally, H.R. 4450 would direct 
Brand USA to develop performance measurements and establish a 
competitive process for procuring goods and services.
    Based on information from Brand USA, CBO estimates that 
enacting H.R. 4450 would increase direct spending by $500 
million over the 2015-2019 period.

Revenues

    Citizens of certain countries can travel to the United 
States for short stays without a visa under the Visa Waiver 
Program. Upon receiving approval, such travelers must pay a $10 
travel promotion fee, which in part funds spending by Brand 
USA. The fee is scheduled to expire under current law at the 
end of fiscal year 2015. H.R. 4450 would extend the fee through 
2020, which CBO estimates would raise revenues by $731 million 
over the 2015-2024 period.

Spending subject to appropriation

    H.R. 4450 would direct the Secretary of Commerce to 
establish a procedure for revising the corporation's policy for 
private contributions, and meet with Brand USA every two years 
to review procedures used to determine the value of goods and 
services received from private sources. CBO estimates that 
implementing this provision would not have a significant effect 
on discretionary spending over the 2015-2019 period.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays and revenues that are 
subject to those pay-as-you-go procedures are shown in the 
following table.

         CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4450, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON ENERGY AND COMMERCE ON JULY 15, 2014
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                By fiscal year, in millions of dollars----
                                                 -------------------------------------------------------------------------------------------------------
                                                   2014   2015   2016   2017    2018    2019    2020    2021    2022   2023   2024  2014-2019  2014-2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                       NET INCREASE OR DECREASE (-) IN THE DEFICIT

Statutory Pay-As-You-Go Impact..................      0      0     58     -42     -46     -50     -55      20      0      0      0      -196       -231
Memorandum:
    Changes in Outlays..........................      0      0     80     100     100     100     100      20      0      0      0       380        500
    Changes in Revenues.........................      0      0    138     142     146     150     155       0      0      0      0       576        731
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Intergovernmental and private-sector impact: H.R. 4450 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal Spending: Susan Willie; 
Federal Revenues: Mark Booth; Impact on State, Local, and 
Tribal Governments: Melissa Merrell; Impact on the Private 
Sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                    Duplication of Federal Programs

    No provision of H.R. 4450 establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The Committee estimates that enacting H.R. 4450 does not 
direct the completion of a rule making within the meaning of 5 
U.S.C. 551.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 provides that the Act may be cited as the 
``Travel Promotion, Enhancement, and Modernization Act of 
2014.''

Section 2. Board of Directors

    Section 2 amends the requirements for the Board of 
Directors of Brand USA to expand the list of potential 
candidates to individuals with promotion or marketing 
experience, and requires that the Board must be comprised of 
individuals with a particular expertise and experience.

Section 3. Annual report to Congress

    Section 3 requires the annual marketing campaign report to 
include a description and rational for focusing on specific 
countries, populations, media channels, and usage ratios in the 
campaign.

Section 4. Biannual review of procedures to determine fair market value 
        of goods and services

    Section 4 creates a new biannual review of the procedures 
used to determine the fair market value of goods and services 
received from non-Federal sources tracked for matching 
purposes. Additionally, this section requires that the fair 
market value of goods and services provided by non-public 
funding may only account for 70 percent of the matching 
requirement in any fiscal year. Brand USA must develop and 
maintain a formal and publically available in-kind 
contributions policy.

Section 5. Extension of Travel Promotion Act of 2009

    Section 5 extends the scope of Brand USA to include all 50 
States and territories of the United States, including the 
District of Columbia, and reauthorizes 100 percent matched 
public funding of the Travel Promotion Fund through FY 2020. 
The Travel Promotion Fund Fee is extended through FY 2020 by an 
amendment to the Immigration and Nationality Act (8 U.S.C. 
Sec. 1187(h) et seq.).

Section 6. Accountability; procurement requirements

    Section 6, as amended, requires Brand USA to explain any 
expenditure in excess of $500,000 in the Corporation's annual 
budget to the Secretary of Commerce. This section also requires 
Brand USA, within 90 days of final passage, to establish 
performance metrics to measure the impact of its marketing 
efforts and to demonstrate the effectiveness of Brand USA's 
marketing efforts, whether external forces have impacted 
increases in visitation and spending rather than Brand USA's 
efforts, and any cost or benefit to the economy of the United 
States. Additionally, this section requires that, not later 
than 60 days after receiving a report from the General 
Accountability Office (GAO) with recommendations for Brand USA, 
the Corporation shall issue a report to Congress detailing the 
actions taken in response to such GAO report. Finally, section 
6 requires the establishment of a competitive procurement 
process and certification in its annual report to Congress that 
any contracts entered into are in compliance with that 
procurement process.

Section 7. Repeal of assessment authority

    Section 7 repeals Brand USA's assessment authority.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, 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 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                      TRAVEL PROMOTION ACT OF 2009


SEC. 9. TRAVEL PROMOTION ACT OF 2009.

  (a) Short Title.--This section may be cited as the ``Travel 
Promotion Act of 2009''.
  (b) The Corporation for Travel Promotion.--
          (1) * * *
          (2) Board of directors.--
                  (A) In general.--The Corporation shall have a 
                board of directors of 11 members with knowledge 
                of international travel [promotion and 
                marketing] promotion or marketing, broadly 
                representing various regions of the United 
                States, who are United States citizens. At 
                least 5 members of the board shall have 
                experience working in United States 
                multinational entities with marketing budgets. 
                At least 2 members of the board shall be audit 
                committee financial experts (as defined by the 
                Securities and Exchange Commission in 
                accordance with section 407 of Public Law 107-
                204 (15 U.S.C. 7265)). All members of the board 
                shall be a current or former chief executive 
                officer, chief financial officer, or chief 
                marketing officer, or have held an equivalent 
                management position. Members of the board shall 
                be appointed by the Secretary of Commerce 
                (after consultation with the Secretary of 
                Homeland Security and the Secretary of State), 
                as follows:
                          (i) * * *

           *       *       *       *       *       *       *

                          (x) 1 shall have appropriate 
                        expertise in the [intercity passenger 
                        railroad business] land or sea 
                        passenger transportation sector.

           *       *       *       *       *       *       *

          (5) Duties and powers.--
                  (A) In general.--The Corporation shall 
                develop and execute a plan--
                          (i) * * *

           *       *       *       *       *       *       *

                          (iv) to ensure that international 
                        travel benefits [all States and the 
                        District of Columbia] all States and 
                        territories of the United States and 
                        the District of Columbia, and to 
                        identify opportunities and strategies 
                        to promote tourism to rural and urban 
                        areas equally, including areas not 
                        traditionally visited by international 
                        travelers; and

           *       *       *       *       *       *       *

  (c) Accountability Measures.--
          (1) * * *
          (2) Budget.--The board shall transmit a copy of the 
        Corporation's budget for the forthcoming fiscal year to 
        the Secretary not less than 60 days before the 
        beginning of each fiscal year, together with an 
        explanation of any expenditure provided for by the 
        budget in excess of [$5,000,000] $500,000 for the 
        fiscal year. The Corporation shall make a copy of the 
        budget and the explanation available to the public and 
        shall provide public access to the budget and 
        explanation on the Corporation's website.
          (3) Annual report to congress.--The Corporation shall 
        submit an annual report for the preceding fiscal year 
        to the Secretary of Commerce for transmittal to the 
        Congress on or before the 15th day of May of each year. 
        The report shall include--
                  (A) * * *

           *       *       *       *       *       *       *

                  (F) a comprehensive and detailed report of 
                the Corporation's operations and activities to 
                promote tourism in rural and urban areas; [and]
                  (G) a description of, and rationales for, the 
                Corporation's efforts to focus on specific 
                countries and populations;
                  (H)(i) a description of, and rationales for, 
                the Corporation's combination of media channels 
                employed in meeting the promotional objectives 
                of its marketing campaign;
                  (ii) the ratio in which such channels are 
                used; and
                  (iii) a justification for the use and ratio 
                of such channels; and
                  [(G)] (I) such recommendations as the 
                Corporation deems appropriate.

           *       *       *       *       *       *       *

  (d) Matching Public and Private Funding.--
          (1) * * *
          (2) Funding.--
                  (A) * * *
                  (B) Subsequent years.--For each of fiscal 
                years 2012 through [2015] 2020, from amounts 
                deposited in the general fund of the Treasury 
                during the preceding fiscal year from fees 
                under section 217(h)(3)(B)(i)(I) of the 
                Immigration and Nationality Act (8 U.S.C. 
                1187(h)(B)(i)(I)), the Secretary of the 
                Treasury shall transfer not more than 
                $100,000,000 to the Fund, which shall be made 
                available to the Corporation, subject to 
                paragraph (3) of this subsection, to carry out 
                its functions under this section. Transfers 
                shall be made at least quarterly on the basis 
                of estimates by the Secretary, and proper 
                adjustments shall be made in amounts 
                subsequently transferred to the extent prior 
                estimates were in excess or less than the 
                amounts required to be transferred.
          (3) Matching requirement.--
                  (A) * * *
                  (B) Goods and services.--For the purpose of 
                determining the amount received from non-
                Federal sources by the Corporation, other than 
                money--
                          (i) * * *
                          (ii) the fair market value of such 
                        goods and services may not account for 
                        more than [80 percent] 70 percent of 
                        the matching requirement under 
                        subparagraph (A) for the Corporation in 
                        any fiscal year.

           *       *       *       *       *       *       *

                  (E) Maintenance of an in-kind contributions 
                policy.--The Corporation shall maintain an in-
                kind contributions policy.
                  (F) Formalized procedures for in-kind 
                contributions policy.--Not later than 90 days 
                after the date of enactment of the Travel 
                Promotion, Enhancement, and Modernization Act 
                of 2014, the Secretary of Commerce, in 
                coordination with the Corporation, shall 
                establish formal, publicly available procedures 
                specifying time frames and conditions for--
                          (i) making and agreeing to revisions 
                        of the Corporation's in-kind 
                        contributions policy; and
                          (ii) addressing and resolving 
                        disagreements between the Corporation 
                        and its partners, including the 
                        Secretary of Commerce, regarding the 
                        in-kind contributions policy.
                  (G) Biannual review of procedures to 
                determine fair market value of goods and 
                services.--The Corporation and the Secretary of 
                Commerce (or their designees) shall meet on a 
                biannual basis to review the procedures to 
                determine the fair market value of goods and 
                services received from non-Federal sources by 
                the Corporation under subparagraph (B).
          (4) Carryforward.--
                  (A) * * *
                  (B) Matching funds.--Any amount received by 
                the Corporation from non-Federal sources in 
                [fiscal year 2011, 2012, 2013, 2014, or 2015] 
                each of the fiscal years 2011 through 2020 that 
                cannot be used to meet the matching requirement 
                under paragraph (3)(A) for the fiscal year in 
                which amount was collected may be carried 
                forward and treated as having been received in 
                the succeeding fiscal year for purposes of 
                meeting the matching requirement of paragraph 
                (3)(A) in such succeeding fiscal year.
  [(e)] (h) Travel Promotion Fund Fees.--Section 217(h)(3)(B) 
of the Immigration and Nationality Act (8 U.S.C. 1187(h)(3)(B)) 
is amended to read as follows:
                  ``(B) * * *''.
  [(f) Assessment Authority.--
          [(1) In general.--Except as otherwise provided in 
        this subsection, the Corporation may impose an annual 
        assessment on United States members of the 
        international travel and tourism industry (other than 
        those described in subsection (b)(2)(A)(iii) or (H)) 
        represented on the Board in proportion to their share 
        of the aggregate international travel and tourism 
        revenue of the industry. The Corporation shall be 
        responsible for verifying, implementing, and collecting 
        the assessment authorized by this subsection.
          [(2) Initial assessment limited.--The Corporation may 
        establish the initial assessment after the date of 
        enactment of this section at no greater, in the 
        aggregate, than $20,000,000.
          [(3) Referenda.--
                  [(A) In general.--The Corporation may not 
                impose an annual assessment unless--
                          [(i) the Corporation submits the 
                        proposed annual assessment to members 
                        of the industry in a referendum; and
                          [(ii) the assessment is approved by a 
                        majority of those voting in the 
                        referendum.
                  [(B) Procedural requirements.--In conducting 
                a referendum under this paragraph, the 
                Corporation shall--
                          [(i) provide written or electronic 
                        notice not less than 60 days before the 
                        date of the referendum;
                          [(ii) describe the proposed 
                        assessment or increase and explain the 
                        reasons for the referendum in the 
                        notice; and
                          [(iii) determine the results of the 
                        referendum on the basis of weighted 
                        voting apportioned according to each 
                        business entity's relative share of the 
                        aggregate annual United States 
                        international travel and tourism 
                        revenue for the industry per business 
                        entity, treating all related entities 
                        as a single entity.
          [(4) Collection.--
                  [(A) In general.--The Corporation shall 
                establish a means of collecting the assessment 
                that it finds to be efficient and effective. 
                The Corporation may establish a late payment 
                charge and rate of interest to be imposed on 
                any person who fails to remit or pay to the 
                Corporation any amount assessed by the 
                Corporation under this section.
                  [(B) Enforcement.--The Corporation may bring 
                suit in Federal court to compel compliance with 
                an assessment levied by the Corporation under 
                this section.
          [(5) Investment of funds.--Pending disbursement 
        pursuant to a program, plan, or project, the 
        Corporation may invest funds collected through 
        assessments, and any other funds received by the 
        Corporation, only in obligations of the United States 
        or any agency thereof, in general obligations of any 
        State or any political subdivision thereof, in any 
        interest-bearing account or certificate of deposit of a 
        bank that is a member of the Federal Reserve System, or 
        in obligations fully guaranteed as to principal and 
        interest by the United States.]
  (f) Accountability.--
          (1) Performance plans and measures.--Not later than 
        90 days after the date of the enactment of the Travel 
        Promotion, Enhancement, and Modernization Act of 2014, 
        the Corporation shall--
                  (A) establish performance metrics including, 
                time frames, evaluation methodologies, and data 
                sources for measuring--
                          (i) the effectiveness of marketing 
                        efforts by the Corporation, including 
                        its progress in achieving the long-term 
                        goals of increased traveler visits to 
                        and spending in the United States;
                          (ii) whether increases in visitation 
                        and spending have occurred in response 
                        to external influences, such as 
                        economic conditions or exchange rates, 
                        rather than in response to the efforts 
                        of the Corporation; and
                          (iii) any cost or benefit to the 
                        economy of the United States; and
                  (B) conduct periodic program evaluations in 
                response to the data resulting from 
                measurements under subparagraph (A).
          (2) GAO accountability.--Not later than 60 days after 
        the date on which the Corporation receives a report 
        from the Government Accountability Office with 
        recommendations for the Corporation, the Corporation 
        shall submit a report to Congress that describes the 
        actions taken by the Corporation in response to the 
        recommendations in such report.
  [(g)] (i) Office of Travel Promotion.--Title II of the 
International Travel Act of 1961 (22 U.S.C. 2121 et seq.) is 
amended by inserting after section 201 the following:''.
  [(h)] (j) Research Program.--Title II of the International 
Travel Act of 1961 (22 U.S.C. 2121 et seq.), as amended by 
subsection (g), is further amended by inserting after section 
202 the following:

``SEC. 203. RESEARCH PROGRAM

  ``(a) * * *''.

           *       *       *       *       *       *       *

  (g) Procurement Requirements.--The Corporation shall--
          (1) establish a competitive procurement process; and
          (2) certify in its annual report to Congress under 
        subsection (c)(3) that any contracts entered into were 
        in compliance with the established competitive 
        procurement process.
                              ----------                              


IMMIGRATION AND NATIONALITY ACT

           *       *       *       *       *       *       *


TITLE II--IMMIGRATION

           *       *       *       *       *       *       *


 Chapter 2--Qualifications for Admission of Aliens; Travel Control of 
Citizens and Aliens

           *       *       *       *       *       *       *


                visa waiver program for certain visitors

  Sec. 217. (a) * * *

           *       *       *       *       *       *       *

  (h) Use of Information Technology Systems.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Electronic travel authorization system.--
                  (A) * * *
                  (B) Fees.--
                          (i) * * *

           *       *       *       *       *       *       *

                          (iii) Sunset of travel promotion fund 
                        fee.--The Secretary may not collect the 
                        fee authorized by clause (i)(I) for 
                        fiscal years beginning after [September 
                        30, 2015] September 30, 2020.

           *       *       *       *       *       *       *