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116th Congress  }                                     {  Rept. 116-376
                        HOUSE OF REPRESENTATIVES
 2d Session     }                                     {         Part 1

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



 
                        BRAND USA EXTENSION ACT

                                _______
                                

January 13, 2020.--Committed to the Committee on the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 3851]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 3851) to extend funding for Brand USA through 
fiscal year 2027, 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
  I. Purpose and Summary..............................................2
 II. Background and Need for the Legislation..........................3
III. Committee Hearings...............................................4
 IV. Committee Consideration..........................................4
  V. Committee Votes..................................................4
 VI. Oversight Findings...............................................5
VII. New Budget Authority, Entitlement Authority, and Tax Expenditures5
VIII.Federal Mandates Statement.......................................5

 IX. Statement of General Performance Goals and Objectives............5
  X. Duplication of Federal Programs..................................5
 XI. Committee Cost Estimate..........................................5
XII. Earmarks, Limited Tax Benefits, and Limited Tariff Benefits......5
XIII.Advisory Committee Statement.....................................5

XIV. Applicability to Legislative Branch..............................6
 XV. Section-by-Section Analysis of the Legislation...................6
XVI. Changes in Existing Law Made by the Bill, as Reported............7

    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 ``Brand USA Extension Act''.

SEC. 2. THE CORPORATION FOR TRAVEL PROMOTION.

  Subsection (b) of the Travel Promotion Act of 2009 (22 U.S.C. 
2131(b)) is amended--
          (1) in paragraph (2)(A)--
                  (A) in clause (ii), by inserting ``or foodservice'' 
                after ``restaurant'';
                  (B) in clause (v), by inserting ``, such as outdoor 
                recreation'' before the semicolon at the end; and
                  (C) in clause (viii), by inserting ``commercial or 
                private'' before ``passenger air sector'';
          (2) in paragraph (5)(A)--
                  (A) in clause (iii), by inserting ``speaking 
                conventions, sales missions,'' after ``trade shows,'';
                  (B) in clause (iv), by striking ``and'' at the end;
                  (C) in clause (v), by striking the period at the end 
                and inserting ``; and''; and
                  (D) by adding at the end the following:
                          ``(vi) to promote tourism to the United 
                        States through digital media, online platforms, 
                        and other appropriate medium.''; and
          (3) in paragraph (7)(C), by striking ``3 days'' and inserting 
        ``5 days''.

SEC. 3. ACCOUNTABILITY MEASURES.

  Subsection (c) of the Travel Promotion Act of 2009 (22 U.S.C. 
2131(c)) is amended--
          (1) in paragraph (2), by striking ``$500,000'' and inserting 
        ``$450,000''; and
          (2) in paragraph (3)--
                  (A) by redesignating subparagraph (I) as subparagraph 
                (K);
                  (B) in subparagraph (H)(iii), by striking ``and'' at 
                the end; and
                  (C) by inserting after subparagraph (H)(iii) the 
                following:
                  ``(I) a list of countries the Corporation identifies 
                as emerging markets for tourism to the United States;
                  ``(J) a description of the efforts the Corporation 
                has made to promote tourism to rural areas of the 
                United States; and''.

SEC. 4. EXTENSION OF FUNDING FOR BRAND USA.

  Subsection (d) of the Travel Promotion Act of 2009 (22 U.S.C. 
2131(d)) is amended--
          (1) in paragraph (2)(B), by striking ``2020'' and inserting 
        ``2027'';
          (2) in paragraph (3)(B)(ii), by striking ``70 percent'' and 
        inserting ``50 percent''; and
          (3) in paragraph (4)(B), by striking ``2020'' and inserting 
        ``2027''.

SEC. 5. PERFORMANCE PLAN.

  Not later than 90 days after the date of the enactment of this Act, 
the Corporation for Travel Promotion shall make the performance metrics 
established pursuant to subsection (f)(1)(A) of the Travel Promotion 
Act of 2009 (22 U.S.C. 2131(f)(1)(A)) publicly available on the website 
of the Corporation.

SEC. 6. ELECTRONIC SYSTEM FOR TRAVEL AUTHORIZATION FEE INCREASE.

  Section 217(h)(3)(B)(i)(I) of the Immigration and Nationality Act (8 
U.S.C. 1187(h)(3)(B)(i)(I)) is amended by striking ``$10'' and 
inserting ``$17''.

                         I. Purpose and Summary

    H.R. 3851, the ``Brand USA Extension Act'', was introduced 
on July 18, 2019, by Reps. Welch (D-VT), Bilirakis (R-FL), 
Titus (D-NV), and Long (R-MO) and referred to the Committee on 
Energy and Commerce, and in addition, to the Committee on 
Homeland Security. H.R. 3851 would extend funding for Brand USA 
through fiscal year 2027 and increase the fee on foreign 
visitors used to partially fund the program. The legislation 
also reduces the percentage of in-kind contributions from the 
private sector that can count towards public matching funds; 
clarifies the qualifications for the members on the board of 
directors for Brand USA; clarifies additional methods by which 
Brand USA may carry out its duties; and adds additional 
transparency and accountability measures.

                II. Background and Need for Legislation

    The travel and tourism industry plays a significant role in 
the U.S. economy, supporting 15.7 million American jobs.\1\ 
International travel to the United States represents the single 
largest services-sector export and one of the largest U.S. 
export categories overall, accounting for 10 percent of all 
U.S. exports of goods and services.\2\ Compared to domestic 
tourists, overseas travelers to the U.S. generally spend more 
per traveler than their domestic counterparts, at an average of 
$4,200 spent per trip per person.\3\
---------------------------------------------------------------------------
    \1\U.S. Travel, U.S. Travel Answer Sheet (Mar. 2019) 
(www.ustravel.org/system/files/media_root/document/Research_Fact-
Sheet_US-Travel-Answer-Sheet.pdf).
    \2\International Trade Administration, Fast Facts: United States 
Travel and Tourism Industry 2018 (Oct. 2019) (travel.trade.gov/
outreachpages/download_data_table/Fast_Facts_2018.pdf).
    \3\See Note 1.
---------------------------------------------------------------------------
    The Travel Promotion Act of 2009 (TPA) established the 
public-private Corporation for Travel Promotion, later renamed 
Brand USA, as a national, coordinated marketing organization to 
promote international travel to the United States.\4\ Brand USA 
plans advertising programs and activities, along with several 
industry advisory groups. It also develops industry 
partnerships to help further that goal. Brand USA is governed 
by a board of directors whose members have knowledge of 
international travel promotion and marketing and are appointed 
by the Secretary of Commerce.
---------------------------------------------------------------------------
    \4\Pub. L. No. 111-145.
---------------------------------------------------------------------------
    Brand USA is financed by a combination of public and 
private funds. Private-sector funding may currently come from 
either cash or in-kind contributions, with in-kind 
contributions able to make up a maximum of 70 percent of the 
private sector's financial contribution to the organization.\5\ 
For fiscal year 2018, Brand USA received $108 million in 
contributions from private industry with 43 percent from cash 
contributions and 57 percent from in-kind contributions.\6\ 
Public matching funds are contributed from the Travel Promotion 
Fund, a U.S. Treasury fund sourced by a portion of the 
Electronic System for Travel Authorization (ESTA) fee, which is 
collected from foreign visitors to the United States by the 
Department of Homeland Security.\7\ TPA authorizes a maximum 
annual public contribution of $100 million at a private-sector 
matching ratio of one-to-one.\8\ No U.S. taxpayer dollars are 
used to fund Brand USA.
---------------------------------------------------------------------------
    \5\Pub. L. No. 113-235.
    \6\Brand USA, Annual Report: Fiscal Year 2018, October 1, 2017 to 
September 30, 2018 (www.thebrandusa.com/about/reports).
    \7\See Note 4.
    \8\Id.
---------------------------------------------------------------------------
    TPA assigns to the Department of Commerce most Brand USA 
oversight responsibilities, including approving the 
organization's annual goals; reviewing private-sector 
contributions, including assessing the fair market value of in-
kind goods and services; and directing Treasury to disburse 
federal matching funds after having approved Brand USA's 
requests and documentation. Brand USA also is required to make 
its budget and the result of an independently conducted annual 
financial audit available to Congress. TPA requires that Brand 
USA provide an explanation in its budget for any single 
expenditure that exceeds $500,000.\9\
---------------------------------------------------------------------------
    \9\See Note 5.
---------------------------------------------------------------------------
    In December 2014, as part of the Consolidated and Further 
Continuing Appropriations Act, 2015, Congress reauthorized TPA 
through September 30, 2020.\10\
---------------------------------------------------------------------------
    \10\Id.
---------------------------------------------------------------------------
    H.R. 3851 is needed to ensure continued funding for Brand 
USA and to protect and promote the U.S. tourism industry. This 
legislation provides a necessary awareness of the many points 
of interest beyond our gateway cities that do not have the 
resources to advertise their many benefits to a worldwide 
audience.

                        III. Committee Hearings

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress, the following hearings were used to develop or 
consider H.R. 3851:
    The Subcommittee on Consumer Protection and Commerce held a 
legislative hearing on October 24, 2019, on H.R. 3851, the 
``Brand USA Extension Act'' and one other bill. The hearing was 
entitled, ``Reauthorizing Brand USA and the U.S. SAFE WEB 
Act.'' The Subcommittee received testimony from the following 
witnesses:
           Christopher L. Thompson, President and CEO, 
        Brand USA;
           Tori Barnes, Executive Vice President, U.S. 
        Travel Association; and
           Aaron J. Burstein, Partner, Wilkinson Barker 
        Knauer LLP.

                      IV. Committee Consideration

    H.R. 3851, the ``Brand USA Extension Act'', was introduced 
on July 18, 2019 by Reps. Welch (D-VT), Bilirakis (R-FL), Titus 
(D-NV), and Long (R-MO) and referred to the Committee on Energy 
and Commerce, and in addition, to the Committee on Homeland 
Security. The bill was subsequently referred to the 
Subcommittee on Consumer Protection and Commerce on July 22, 
2019. On November 14, 2019, the Subcommittee met in open markup 
session, pursuant to notice, to consider H.R. 3851. During 
consideration of the bill, an amendment offered by Mr. Carter 
was adopted by voice vote. Subsequently, the Subcommittee on 
Consumer Protection and Commerce agreed to a motion by Ms. 
Schakowsky, Chair of the subcommittee, to favorably forward 
H.R. 3851, as amended, to the full Committee on Energy and 
Commerce by a voice vote.
    On November 20, 2019, the full Committee met in open markup 
session, pursuant to notice, to consider H.R. 3851. 
Subsequently, a motion by Mr. Pallone, Chairman of the 
committee, to order H.R. 3851 reported favorably to the House, 
as amended, was agreed to by a voice vote, a quorum being 
present.

                           V. Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list each record vote 
on the motion to report legislation and amendments thereto. The 
Committee advises that there were X record votes taken on H.R. 
3851.

                         VI. Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII and clause 2(b)(1) 
of rule X of the Rules of the House of Representatives, the 
oversight findings and recommendations of the Committee are 
reflected in the descriptive portion of the report.

 VII. New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to 3(c)(2) of rule XIII of the Rules of the House 
of Representatives, the Committee adopts as its own the 
estimate of new budget authority, entitlement authority, or tax 
expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974.
    The Committee has requested but not received from the 
Director of the Congressional Budget Office a statement as to 
whether this bill contains any new budget authority, credit 
authority, or an increase or decrease in revenues or tax 
expenditures.

                    VIII. 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.

       IX. Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to extend 
funding for Brand USA and bolster transparency and 
accountability measures in the Travel Promotion Act of 2009.

                   X. Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 3851 is known to be duplicative of another Federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

                      XI. Committee Cost Estimate

    Pursuant to clause 3(d)(1) of rule XIII, 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.

    XII. Earmarks, Limited Tax Benefits, and Limited Tariff Benefits

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 3851 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

                   XIII. Advisory Committee Statement

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

                XIV. 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.

           XV. Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 designates that the short title may be cited as 
the ``Brand USA Extension Act''.

Sec. 2. The corporation for travel promotion

    This section amends the TPA to clarify with respect to 
qualifications for members on the board of directors for Brand 
USA that: expertise and experience in the foodservice sector 
may substitute expertise and experience in the restaurant 
sector; expertise and experience in outdoor recreation 
qualifies as expertise and experience in the attractions or 
recreations sector; and expertise and experience in either 
commercial or private passenger air sector also qualifies for 
expertise and experience in the passenger air sector.
    This section further adds ``speaking conventions, sales 
missions'' to methods by which Brand USA can promote travel to 
the United States. It also adds that Brand USA should promote 
tourism through digital media, online platforms, and other 
appropriate medium. It also specifies that board members should 
be given at least five days advanced notice instead of three 
before voting on major campaigns.

Sec. 3. Accountability measures

    This section amends the TPA to reduce from $500,000 to 
$450,000 the dollar threshold for expenditures that require an 
explanation. It also adds two new reporting requirements to the 
annual report to Congress: a list of countries Brand USA 
identifies as emerging markets for tourism to the U.S. and a 
description of efforts to promote tourism to rural areas of the 
United States.

Sec. 4. Extension of funding for Brand USA

    This section amends the TPA to extend funding for Brand USA 
through fiscal year 2027. It also reduces from 70 to 50 the 
percentage of in-kind contributions from the private sector 
that can be used to meet the matching requirement for public 
funds.

Sec. 5. Performance plan

    This section requires Brand USA to make performance metrics 
publicly available on Brand USA's website.

Sec. 6. Electronic System for Travel Authorization fee increase

    This section amends the Immigration and Nationality Act to 
increase the Electronic System for Travel Authorization base 
fee from $10 to $17.

         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, and 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) Establishment.--The Corporation for Travel 
        Promotion is established as a nonprofit corporation. 
        The Corporation shall not be an agency or establishment 
        of the United States Government. The Corporation shall 
        be subject to the provisions of the District of 
        Columbia Nonprofit Corporation Act (D.C. Code, section 
        29-1001 et seq.), to the extent that such provisions 
        are consistent with this subsection, and shall have the 
        powers conferred upon a nonprofit corporation by that 
        Act to carry out its purposes and activities.
          (2) Board of directors.--
                  (A) In general.--The Corporation shall have a 
                board of directors of 11 members with knowledge 
                of international travel promotion or marketing, 
                broadly representing various regions of the 
                United States, who are United States citizens. 
                At least 5 members of the board shall have 
                experience working in United States 
                multinational entities with marketing budgets. 
                At least 2 members of the board shall be audit 
                committee financial experts (as defined by the 
                Securities and Exchange Commission in 
                accordance with section 407 of Public Law 107-
                204 (15 U.S.C. 7265)). All members of the board 
                shall be a current or former chief executive 
                officer, chief financial officer, or chief 
                marketing officer, or have held an equivalent 
                management position. Members of the board shall 
                be appointed by the Secretary of Commerce 
                (after consultation with the Secretary of 
                Homeland Security and the Secretary of State), 
                as follows:
                          (i) 1 shall have appropriate 
                        expertise and experience in the hotel 
                        accommodations sector;
                          (ii) 1 shall have appropriate 
                        expertise and experience in the 
                        restaurant or foodservice sector;
                          (iii) 1 shall have appropriate 
                        expertise and experience in the small 
                        business or retail sector or in 
                        associations representing that sector;
                          (iv) 1 shall have appropriate 
                        expertise and experience in the travel 
                        distribution services sector;
                          (v) 1 shall have appropriate 
                        expertise and experience in the 
                        attractions or recreations sector, such 
                        as outdoor recreation;
                          (vi) 1 shall have appropriate 
                        expertise and experience as officials 
                        of a city convention and visitors' 
                        bureau;
                          (vii) 2 shall have appropriate 
                        expertise and experience as officials 
                        of a State tourism office;
                          (viii) 1 shall have appropriate 
                        expertise and experience in the 
                        commercial or private passenger air 
                        sector;
                          (ix) 1 shall have appropriate 
                        expertise and experience in immigration 
                        law and policy, including visa 
                        requirements and United States entry 
                        procedures; and
                          (x) 1 shall have appropriate 
                        expertise in the land or sea passenger 
                        transportation sector.
                  (B) Incorporation.--The members of the 
                initial board of directors shall serve as 
                incorporators and shall take whatever actions 
                are necessary to establish the Corporation 
                under the District of Columbia Nonprofit 
                Corporation Act (D.C. Code, section 29-301.01 
                et seq.).
                  (C) Term of office.--The term of office of 
                each member of the board appointed by the 
                Secretary shall be 3 years, except that, of the 
                members first appointed--
                          (i) 3 shall be appointed for terms of 
                        1 year;
                          (ii) 4 shall be appointed for terms 
                        of 2 years; and
                          (iii) 4 shall be appointed for terms 
                        of 3 years.
                  (D) Removal for cause.--The Secretary of 
                Commerce may remove any member of the board for 
                good cause.
                  (E) Vacancies.--Any vacancy in the board 
                shall not affect its power, but shall be filled 
                in the manner required by this subsection. Any 
                member whose term has expired may serve until 
                the member's successor has taken office, or 
                until the end of the calendar year in which the 
                member's term has expired, whichever is 
                earlier. Any member appointed to fill a vacancy 
                occurring prior to the expiration of the term 
                for which that member's predecessor was 
                appointed shall be appointed for the remainder 
                of the predecessor's term. No member of the 
                board shall be eligible to serve more than 2 
                consecutive full 3-year terms.
                  (F) Election of chairman and vice chairman.--
                Members of the board shall annually elect one 
                of the members to be Chairman and elect 1 or 2 
                of the members as Vice Chairman or Vice 
                Chairmen.
                  (G) Status as federal employees.--
                Notwithstanding any provision of law to the 
                contrary, no member of the board may be 
                considered to be a Federal employee of the 
                United States by virtue of his or her service 
                as a member of the board.
                  (H) Compensation; expenses.--No member shall 
                receive any compensation from the Federal 
                government for serving on the Board. Each 
                member of the Board shall be paid actual travel 
                expenses and per diem in lieu of subsistence 
                expenses when away from his or her usual place 
                of residence, in accordance with section 5703 
                of title 5, United States Code.
          (3) Officers and employees.--
                  (A) In general.--The Corporation shall have 
                an executive director and such other officers 
                as may be named and appointed by the board for 
                terms and at rates of compensation fixed by the 
                board. No individual other than a citizen of 
                the United States may be an officer of the 
                Corporation. The Corporation may hire and fix 
                the compensation of such employees as may be 
                necessary to carry out its purposes. No officer 
                or employee of the Corporation may receive any 
                salary or other compensation (except for 
                compensation for services on boards of 
                directors of other organizations that do not 
                receive funds from the Corporation, on 
                committees of such boards, and in similar 
                activities for such organizations) from any 
                sources other than the Corporation for services 
                rendered during the period of his or her 
                employment by the Corporation. Service by any 
                officer on boards of directors of other 
                organizations, on committees of such boards, 
                and in similar activities for such 
                organizations shall be subject to annual 
                advance approval by the board and subject to 
                the provisions of the Corporation's Statement 
                of Ethical Conduct. All officers and employees 
                shall serve at the pleasure of the board.
                  (B) Nonpolitical nature of appointment.--No 
                political test or qualification shall be used 
                in selecting, appointing, promoting, or taking 
                other personnel actions with respect to 
                officers, agents, or employees of the 
                Corporation.
          (4) Nonprofit and nonpolitical nature of 
        corporation.--
                  (A) Stock.--The Corporation shall have no 
                power to issue any shares of stock, or to 
                declare or pay any dividends.
                  (B) Profit.--No part of the income or assets 
                of the Corporation shall inure to the benefit 
                of any director, officer, employee, or any 
                other individual except as salary or reasonable 
                compensation for services.
                  (C) Politics.--The Corporation may not 
                contribute to or otherwise support any 
                political party or candidate for elective 
                public office.
                  (D) Sense of congress regarding lobbying 
                activities.--It is the sense of Congress that 
                the Corporation should not engage in lobbying 
                activities (as defined in section 3(7) of the 
                Lobbying Disclosure Act of 1995 (5 U.S.C. 
                1602(7)).
          (5) Duties and powers.--
                  (A) In general.--The Corporation shall 
                develop and execute a plan--
                          (i) to provide useful information to 
                        foreign tourists, business people, 
                        students, scholars, scientists, and 
                        others interested in traveling to the 
                        United States, including the 
                        distribution of material provided by 
                        the Federal government concerning entry 
                        requirements, required documentation, 
                        fees, processes, and information 
                        concerning declared public health 
                        emergencies, to prospective travelers, 
                        travel agents, tour operators, meeting 
                        planners, foreign governments, travel 
                        media and other international 
                        stakeholders;
                          (ii) to identify, counter, and 
                        correct misperceptions regarding United 
                        States entry policies around the world;
                          (iii) to maximize the economic and 
                        diplomatic benefits of travel to the 
                        United States by promoting the United 
                        States of America to world travelers 
                        through the use of, but not limited to, 
                        all forms of advertising, outreach to 
                        trade shows, speaking conventions, 
                        sales missions, and other appropriate 
                        promotional activities;
                          (iv) to ensure that international 
                        travel benefits all States and 
                        territories of the United States and 
                        the District of Columbia, and to 
                        identify opportunities and strategies 
                        to promote tourism to rural and urban 
                        areas equally, including areas not 
                        traditionally visited by international 
                        travelers; [and]
                          (v) to give priority to the 
                        Corporation's efforts with respect to 
                        countries and populations most likely 
                        to travel to the United States[.]; and
                          (vi) to promote tourism to the United 
                        States through digital media, online 
                        platforms, and other appropriate 
                        medium.
                  (B) Specific powers.--In order to carry out 
                the purposes of this subsection, the 
                Corporation may--
                          (i) obtain grants from and make 
                        contracts with individuals and private 
                        companies, State, and Federal agencies, 
                        organizations, and institutions;
                          (ii) hire or accept the voluntary 
                        services of consultants, experts, 
                        advisory boards, and panels to aid the 
                        Corporation in carrying out its 
                        purposes; and
                          (iii) take such other actions as may 
                        be necessary to accomplish the purposes 
                        set forth in this subsection.
                  (C) Public outreach and information.--The 
                Corporation shall develop and maintain a 
                publicly accessible website.
          (6) Open meetings.--Meetings of the board of 
        directors of the Corporation, including any committee 
        of the board, shall be open to the public. The board 
        may, by majority vote, close any such meeting only for 
        the time necessary to preserve the confidentiality of 
        commercial or financial information that is privileged 
        or confidential, to discuss personnel matters, or to 
        discuss legal matters affecting the Corporation, 
        including pending or potential litigation.
          (7) Major campaigns.--The board may not authorize the 
        Corporation to obligate or expend more than $25,000,000 
        on any advertising campaign, promotion, or related 
        effort unless--
                  (A) the obligation or expenditure is approved 
                by an affirmative vote of at least 2/3 of the 
                members of the board present at the meeting;
                  (B) at least 6 members of the board are 
                present at the meeting at which it is approved; 
                and
                  (C) each member of the board has been given 
                at least [3 days] 5 days advance notice of the 
                meeting at which the vote is to be taken and 
                the matters to be voted upon at that meeting.
          (8) Fiscal accountability.--
                  (A) Fiscal year.--The Corporation shall 
                establish as its fiscal year the 12-month 
                period beginning on October 1.
                  (B) Budget.--The Corporation shall adopt a 
                budget for each fiscal year.
                  (C) Annual audits.--The Corporation shall 
                engage an independent accounting firm to 
                conduct an annual financial audit of the 
                Corporation's operations and shall publish the 
                results of the audit. The Comptroller General 
                of the United States may review any audit of a 
                financial statement conducted under this 
                paragraph by an independent accounting firm and 
                may audit the Corporation's operations at the 
                discretion of the Comptroller General. The 
                Comptroller General and the Congress shall have 
                full and complete access to the books and 
                records of the Corporation.
                  (D) Program audits.--Not later than 2 years 
                after the date of enactment of this section, 
                the Comptroller General shall conduct a review 
                of the programmatic activities of the 
                Corporation for Travel Promotion. This report 
                shall be provided to appropriate congressional 
                committees.
  (c) Accountability Measures.--
          (1) Objectives.--The Board shall establish annual 
        objectives for the Corporation for each fiscal year 
        subject to approval by the Secretary of Commerce (after 
        consultation with the Secretary of Homeland Security 
        and the Secretary of State). The Corporation shall 
        establish a marketing plan for each fiscal year not 
        less than 60 days before the beginning of that year and 
        provide a copy of the plan, and any revisions thereof, 
        to the Secretary.
          (2) Budget.--The board shall transmit a copy of the 
        Corporation's budget for the forthcoming fiscal year to 
        the Secretary not less than 60 days before the 
        beginning of each fiscal year, together with an 
        explanation of any expenditure provided for by the 
        budget in excess of [$500,000] $450,000 for the fiscal 
        year. The Corporation shall make a copy of the budget 
        and the explanation available to the public and shall 
        provide public access to the budget and explanation on 
        the Corporation's website.
          (3) Annual report to congress.--The Corporation shall 
        submit an annual report for the preceding fiscal year 
        to the Secretary of Commerce for transmittal to the 
        Congress on or before the 15th day of May of each year. 
        The report shall include--
                  (A) a comprehensive and detailed report of 
                the Corporation's operations, activities, 
                financial condition, and accomplishments under 
                this section;
                  (B) a comprehensive and detailed inventory of 
                amounts obligated or expended by the 
                Corporation during the preceding fiscal year;
                  (C) a detailed description of each in-kind 
                contribution, its fair market value, the 
                individual or organization responsible for 
                contributing, its specific use, and a 
                justification for its use within the context of 
                the Corporation's mission;
                  (D) an objective and quantifiable measurement 
                of its progress, on an objective-by-objective 
                basis, in meeting the objectives established by 
                the board;
                  (E) an explanation of the reason for any 
                failure to achieve an objective established by 
                the board and any revisions or alterations to 
                the Corporation's objectives under paragraph 
                (1);
                  (F) a comprehensive and detailed report of 
                the Corporation's operations and activities to 
                promote tourism in rural and urban areas;
                  (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]
                  (I) a list of countries the Corporation 
                identifies as emerging markets for tourism to 
                the United States;
                  (J) a description of the efforts the 
                Corporation has made to promote tourism to 
                rural areas of the United States; and
                  [(I)] (K) such recommendations as the 
                Corporation deems appropriate.
          (4) Limitation on use of funds.--Amounts deposited in 
        the Fund may not be used for any purpose inconsistent 
        with carrying out the objectives, budget, and report 
        described in this subsection.
  (d) Matching Public and Private Funding.--
          (1) Establishment of travel promotion fund.--There is 
        hereby established in the Treasury a fund which shall 
        be known as the Travel Promotion Fund.
          (2) Funding.--
                  (A) Start-up expenses.--The Secretary of the 
                Treasury shall make available to the 
                Corporation such sums as may be necessary, but 
                not to exceed $10,000,000, from amounts 
                deposited in the general fund of the Treasury 
                from fees under section 217(h)(3)(B)(i)(I) of 
                the Immigration and Nationality Act (8 U.S.C. 
                1187(h)(3)(B)(i)(I)) to cover the Corporation's 
                initial expenses and activities under this 
                section. Transfers shall be made at least 
                monthly, immediately following the collection 
                of fees under section 217(h)(3)(B)(i)(I) of the 
                Immigration and Nationality Act (8 U.S.C. 
                1187(h)(3)(B)(i)(I)), on the basis of estimates 
                by the Secretary, and proper adjustments shall 
                be made in amounts subsequently transferred to 
                the extent prior estimates were in excess or 
                less than the amounts required to be 
                transferred.
                  (B) Subsequent years.--For each of fiscal 
                years 2012 through [2020] 2027, from amounts 
                deposited in the general fund of the Treasury 
                during the preceding fiscal year from fees 
                under section 217(h)(3)(B)(i)(I) of the 
                Immigration and Nationality Act (8 U.S.C. 
                1187(h)(B)(i)(I)), the Secretary of the 
                Treasury shall transfer not more than 
                $100,000,000 to the Fund, which shall be made 
                available to the Corporation, subject to 
                paragraph (3) of this subsection, to carry out 
                its functions under this section. Transfers 
                shall be made at least quarterly on the basis 
                of estimates by the Secretary, and proper 
                adjustments shall be made in amounts 
                subsequently transferred to the extent prior 
                estimates were in excess or less than the 
                amounts required to be transferred.
          (3) Matching requirement.--
                  (A) In general.--No amounts may be made 
                available to the Corporation under this 
                subsection after fiscal year 2011, except to 
                the extent that--
                          (i) for fiscal year 2012, the 
                        Corporation provides matching amounts 
                        from non-Federal sources equal in the 
                        aggregate to 50 percent or more of the 
                        amount transferred to the Fund under 
                        paragraph (2); and
                          (ii) for any fiscal year after fiscal 
                        year 2012, the Corporation provides 
                        matching amounts from non-Federal 
                        sources equal in the aggregate to 100 
                        percent of the amount transferred to 
                        the Fund under paragraph (2) for the 
                        fiscal year.
                  (B) Goods and services.--For the purpose of 
                determining the amount received from non-
                Federal sources by the Corporation, other than 
                money--
                          (i) the fair market value of goods 
                        and services (including advertising) 
                        contributed to the Corporation for use 
                        under this section may be included in 
                        the determination; but
                          (ii) the fair market value of such 
                        goods and services may not account for 
                        more than [70 percent] 50 percent of 
                        the matching requirement under 
                        subparagraph (A) for the Corporation in 
                        any fiscal year.
                  (C) Right of refusal.--The Corporation may 
                decline to accept any contribution in-kind that 
                it determines to be inappropriate, not useful, 
                or commercially worthless.
                  (D) Limitation.--The Corporation may not 
                obligate or expend funds in excess of the total 
                amount received by the Corporation for a fiscal 
                year from Federal and non-Federal sources.
                  (E) Maintenance of an in-kind contributions 
                policy.--The Corporation shall maintain an in-
                kind contributions policy.
                  (F) Formalized procedures for in-kind 
                contributions policy.--Not later than 90 days 
                after the date of enactment of the Travel 
                Promotion, Enhancement, and Modernization Act 
                of 2014, the Secretary of Commerce, in 
                coordination with the Corporation, shall 
                establish formal, publicly available procedures 
                specifying time frames and conditions for--
                          (i) making and agreeing to revisions 
                        of the Corporation's in-kind 
                        contributions policy; and
                          (ii) addressing and resolving 
                        disagreements between the Corporation 
                        and its partners, including the 
                        Secretary of Commerce, regarding the 
                        in-kind contributions policy.
                  (G) Biannual review of procedures to 
                determine fair market value of goods and 
                services.--The Corporation and the Secretary of 
                Commerce (or their designees) shall meet on a 
                biannual basis to review the procedures to 
                determine the fair market value of goods and 
                services received from non-Federal sources by 
                the Corporation under subparagraph (B).
          (4) Carryforward.--
                  (A) Federal funds.--Amounts transferred to 
                the Fund under paragraph (2)(B) shall remain 
                available until expended.
                  (B) Matching funds.--Any amount received by 
                the Corporation from non-Federal sources in 
                each of the fiscal years 2011 through [2020] 
                2027 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.
  (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.
  (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) Fees.--
                          ``(i) In general.--No later than 6 
                        months after the date of enactment of 
                        the Travel Promotion Act of 2009, the 
                        Secretary of Homeland Security shall 
                        establish a fee for the use of the 
                        System and begin assessment and 
                        collection of that fee. The initial fee 
                        shall be the sum of--
                                  ``(I) $10 per travel 
                                authorization; and
                                  ``(II) an amount that will at 
                                least ensure recovery of the 
                                full costs of providing and 
                                administering the System, as 
                                determined by the Secretary.
                          ``(ii) Disposition of amounts 
                        collected.--Amounts collected under 
                        clause (i)(I) shall be credited to the 
                        Travel Promotion Fund established by 
                        subsection (d) of section 11 of the 
                        Travel Promotion Act of 2009. Amounts 
                        collected under clause (i)(II) shall be 
                        transferred to the general fund of the 
                        Treasury and made available to pay the 
                        costs incurred to administer the 
                        System.
                          ``(iii) Sunset of travel promotion 
                        fund fee.--The Secretary may not 
                        collect the fee authorized by clause 
                        (i)(I) for fiscal years beginning after 
                        September 30, 2014.''.
  (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:

``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) Director.--
          ``(1) Appointment.--The Office shall be headed by a 
        Director who shall be appointed by the Secretary.
          ``(2) Qualifications.--The Director shall be a 
        citizen of the United States and have experience in a 
        field directly related to the promotion of travel to 
        and within the United States.
          ``(3) Duties.--The Director shall be responsible for 
        ensuring the office is carrying out its functions 
        effectively and shall report to the Secretary.
  ``(c) Functions.--The Office shall--
          ``(1) serve as liaison to the Corporation for Travel 
        Promotion established by subsection (b) of section 11 
        of the Travel Promotion Act of 2009 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;
                  ``(B) to ensure that arriving international 
                visitors are generally welcomed with accurate 
                information and in an inviting manner;
                  ``(C) to collect accurate data on the total 
                number of international visitors that visit 
                each State; and
                  ``(D) enhance the entry and departure 
                experience for international visitors through 
                the use of advertising, signage, and customer 
                service; and
          ``(3) support State, regional, and private sector 
        initiatives to promote travel to and within the United 
        States.
  ``(d) Reports to Congress.--Within a year after the date of 
enactment of the Travel Promotion Act of 2009, and periodically 
thereafter as appropriate, the Secretary shall transmit a 
report to the Senate Committee on Commerce, Science, and 
Transportation, the Senate Committee on Homeland Security and 
Governmental Affairs, the Senate Committee on Foreign 
Relations, the House of Representatives Committee on Energy and 
Commerce, the House of Representatives Committee on Homeland 
Security, and the House of Representatives Committee on Foreign 
Affairs describing the Office's work with the Corporation, the 
Secretary of State and the Secretary of Homeland Security to 
carry out subsection (c)(2).''.
  (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:

           *       *       *       *       *       *       *

                              ----------                              


                    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) Establishment of Program.--The Secretary of 
Homeland Security 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 Secretary 
of Homeland Security, 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) Passport requirements.--The alien, at the time of 
        application for admission, is in possession of a valid 
        unexpired passport that satisfies the following:
                  (A) Machine readable.--The passport is a 
                machine-readable passport that is tamper-
                resistant, incorporates document authentication 
                identifiers, and otherwise satisfies the 
                internationally accepted standard for machine 
                readability.
                  (B) Electronic.--Beginning on April 1, 2016, 
                the passport is an electronic passport that is 
                fraud-resistant, contains relevant biographic 
                and biometric information (as determined by the 
                Secretary of Homeland Security), and otherwise 
                satisfies internationally accepted standards 
                for electronic passports.
          (4) Executes immigration forms.--The alien before the 
        time of such admission completes such immigration form 
        as the Secretary of Homeland Security 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 Secretary of Homeland Security 
        pursuant to subsection (e). The Secretary of Homeland 
        Security 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 Secretary of Homeland 
        Security 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 Secretary of Homeland 
        Security 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.
          (10) Electronic transmission of identification 
        information.--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 
        Secretary of Homeland Security 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.
          (11) Eligibility determination under the electronic 
        system for travel authorization.--Beginning on the date 
        on which the electronic system for travel authorization 
        developed under subsection (h)(3) is fully operational, 
        each alien traveling under the program shall, before 
        applying for admission to the United States, 
        electronically provide to the system biographical 
        information and such other information as the Secretary 
        of Homeland Security shall determine necessary to 
        determine the eligibility of, and whether there exists 
        a law enforcement or security risk in permitting, the 
        alien to travel to the United States. Upon review of 
        such biographical information, the Secretary of 
        Homeland Security shall determine whether the alien is 
        eligible to travel to the United States under the 
        program.
          (12) Not present in iraq, syria, or any other country 
        or area of concern.--
                  (A) In general.--Except as provided in 
                subparagraphs (B) and (C)--
                          (i) the alien has not been present, 
                        at any time on or after March 1, 2011--
                                  (I) in Iraq or Syria;
                                  (II) in a country that is 
                                designated by the Secretary of 
                                State under section 6(j) of the 
                                Export Administration Act of 
                                1979 (50 U.S.C. 2405) (as 
                                continued in effect under the 
                                International Emergency 
                                Economic Powers Act (50 U.S.C. 
                                1701 et seq.)), section 40 of 
                                the Arms Export Control Act (22 
                                U.S.C. 2780), section 620A of 
                                the Foreign Assistance Act of 
                                1961 (22 U.S.C. 2371), or any 
                                other provision of law, as a 
                                country, the government of 
                                which has repeatedly provided 
                                support of acts of 
                                international terrorism; or
                                  (III) in any other country or 
                                area of concern designated by 
                                the Secretary of Homeland 
                                Security under subparagraph 
                                (D); and
                          (ii) regardless of whether the alien 
                        is a national of a program country, the 
                        alien is not a national of--
                                  (I) Iraq or Syria;
                                  (II) a country that is 
                                designated, at the time the 
                                alien applies for admission, by 
                                the Secretary of State under 
                                section 6(j) of the Export 
                                Administration Act of 1979 (50 
                                U.S.C. 2405) (as continued in 
                                effect under the International 
                                Emergency Economic Powers Act 
                                (50 U.S.C. 1701 et seq.)), 
                                section 40 of the Arms Export 
                                Control Act (22 U.S.C. 2780), 
                                section 620A of the Foreign 
                                Assistance Act of 1961 (22 
                                U.S.C. 2371), or any other 
                                provision of law, as a country, 
                                the government of which has 
                                repeatedly provided support of 
                                acts of international 
                                terrorism; or
                                  (III) any other country that 
                                is designated, at the time the 
                                alien applies for admission, by 
                                the Secretary of Homeland 
                                Security under subparagraph 
                                (D).
                  (B) Certain military personnel and government 
                employees.--Subparagraph (A)(i) shall not apply 
                in the case of an alien if the Secretary of 
                Homeland Security determines that the alien was 
                present--
                          (i) in order to perform military 
                        service in the armed forces of a 
                        program country; or
                          (ii) in order to carry out official 
                        duties as a full time employee of the 
                        government of a program country.
                  (C) Waiver.--The Secretary of Homeland 
                Security may waive the application of 
                subparagraph (A) to an alien if the Secretary 
                determines that such a waiver is in the law 
                enforcement or national security interests of 
                the United States.
                  (D) Countries or areas of concern.--
                          (i) In general.--Not later than 60 
                        days after the date of the enactment of 
                        this paragraph, the Secretary of 
                        Homeland Security, in consultation with 
                        the Secretary of State and the Director 
                        of National Intelligence, shall 
                        determine whether the requirement under 
                        subparagraph (A) shall apply to any 
                        other country or area.
                          (ii) Criteria.--In making a 
                        determination under clause (i), the 
                        Secretary shall consider--
                                  (I) whether the presence of 
                                an alien in the country or area 
                                increases the likelihood that 
                                the alien is a credible threat 
                                to the national security of the 
                                United States;
                                  (II) whether a foreign 
                                terrorist organization has a 
                                significant presence in the 
                                country or area; and
                                  (III) whether the country or 
                                area is a safe haven for 
                                terrorists.
                          (iii) Annual review.--The Secretary 
                        shall conduct a review, on an annual 
                        basis, of any determination made under 
                        clause (i).
                  (E) Report.--Beginning not later than one 
                year after the date of the enactment of this 
                paragraph, and annually thereafter, the 
                Secretary of Homeland Security shall submit to 
                the Committee on Homeland Security, the 
                Committee on Foreign Affairs, the Permanent 
                Select Committee on Intelligence, and the 
                Committee on the Judiciary of the House of 
                Representatives, and the Committee on Homeland 
                Security and Governmental Affairs, the 
                Committee on Foreign Relations, the Select 
                Committee on Intelligence, and the Committee on 
                the Judiciary of the Senate a report on each 
                instance in which the Secretary exercised the 
                waiver authority under subparagraph (C) during 
                the previous year.
  (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 Secretary of Homeland Security, 
        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) Passport program.--
                          (i) Issuance of passports.--The 
                        government of the country certifies 
                        that it issues to its citizens 
                        passports described in subparagraph (A) 
                        of subsection (a)(3), and on or after 
                        April 1, 2016, passports described in 
                        subparagraph (B) of subsection (a)(3).
                          (ii) Validation of passports.--Not 
                        later than October 1, 2016, the 
                        government of the country certifies 
                        that it has in place mechanisms to 
                        validate passports described in 
                        subparagraphs (A) and (B) of subsection 
                        (a)(3) at each key port of entry into 
                        that country. This requirement shall 
                        not apply to travel between countries 
                        which fall within the Schengen Zone.
                  (C) Law enforcement and security interests.--
                The Secretary of Homeland Security, 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, the 
                        Committee on Foreign Affairs, and the 
                        Committee on Homeland Security of the 
                        House of Representatives and the 
                        Committee on the Judiciary, the 
                        Committee on Foreign Relations, and the 
                        Committee on Homeland Security and 
                        Governmental Affairs of the Senate 
                        regarding the country's qualification 
                        for designation that includes an 
                        explanation of such determination.
                  (D) Reporting lost and stolen passports.--The 
                government of the country enters into an 
                agreement with the United States to report, or 
                make available through Interpol or other means 
                as designated by the Secretary of Homeland 
                Security, to the United States Government 
                information about the theft or loss of 
                passports not later than 24 hours after 
                becoming aware of the theft or loss and in a 
                manner specified in the agreement.
                  (E) Repatriation of aliens.--The government 
                of the country accepts for repatriation any 
                citizen, former citizen, or national of the 
                country against whom a final executable order 
                of removal is issued not later than three weeks 
                after the issuance of the final order of 
                removal. Nothing in this subparagraph creates 
                any duty for the United States or any right for 
                any alien with respect to removal or release. 
                Nothing in this subparagraph gives rise to any 
                cause of action or claim under this paragraph 
                or any other law against any official of the 
                United States or of any State to compel the 
                release, removal, or consideration for release 
                or removal of any alien.
                  (F) Passenger information exchange.--The 
                government of the country enters into an 
                agreement with the United States to share 
                information regarding whether citizens and 
                nationals of that country traveling to the 
                United States represent a threat to the 
                security or welfare of the United States or its 
                citizens, and fully implements such agreement.
                  (G) Interpol screening.--Not later than 270 
                days after the date of the enactment of this 
                subparagraph, except in the case of a country 
                in which there is not an international airport, 
                the government of the country certifies to the 
                Secretary of Homeland Security that, to the 
                maximum extent allowed under the laws of the 
                country, it is screening, for unlawful 
                activity, each person who is not a citizen or 
                national of that country who is admitted to or 
                departs that country, by using relevant 
                databases and notices maintained by Interpol, 
                or other means designated by the Secretary of 
                Homeland Security. This requirement shall not 
                apply to travel between countries which fall 
                within the Schengen Zone.
          (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 Secretary of 
                        Homeland Security, 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);
                                  (III) shall submit a written 
                                report to the Committee on the 
                                Judiciary, the Committee on 
                                Foreign Affairs, the Permanent 
                                Select Committee on 
                                Intelligence, and the Committee 
                                on Homeland Security, of the 
                                House of Representatives and 
                                the Committee on the Judiciary, 
                                the Committee on Foreign 
                                Relations, the Select Committee 
                                on Intelligence and the 
                                Committee on Homeland Security 
                                and Governmental Affairs 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);
                                  (IV) shall submit to Congress 
                                a report regarding the 
                                implementation of the 
                                electronic system for travel 
                                authorization under subsection 
                                (h)(3) and the participation of 
                                new countries in the program 
                                through a waiver under 
                                paragraph (8); and
                                  (V) shall submit to the 
                                committees described in 
                                subclause (III), a report that 
                                includes an assessment of the 
                                threat to the national security 
                                of the United States of the 
                                designation of each country 
                                designated as a program 
                                country, including the 
                                compliance of the government of 
                                each such country with the 
                                requirements under 
                                subparagraphs (D) and (F) of 
                                paragraph (2), as well as each 
                                such government's capacity to 
                                comply with such requirements.
                          (ii) Effective date.--A termination 
                        of the designation of a country under 
                        this subparagraph shall take effect on 
                        the date determined by the Secretary of 
                        Homeland Security, in consultation with 
                        the Secretary of State.
                          (iii) Redesignation.--In the case of 
                        a termination under this subparagraph, 
                        the Secretary of Homeland Security 
                        shall redesignate the country as a 
                        program country, without regard to 
                        subsection (f) or paragraph (2) or (3), 
                        when the Secretary of Homeland 
                        Security, 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 Secretary of Homeland 
                        Security, 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 Secretary of Homeland 
                        Security 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 Secretary 
                        of Homeland Security may redesignate 
                        the country as a program country, 
                        without regard to subsection (f) or 
                        paragraph (2) or (3), when the 
                        Secretary of Homeland Security, 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.
                          (iv) Program suspension authority.--
                        The Director of National Intelligence 
                        shall immediately inform the Secretary 
                        of Homeland Security of any current and 
                        credible threat which poses an imminent 
                        danger to the United States or its 
                        citizens and originates from a country 
                        participating in the visa waiver 
                        program. Upon receiving such 
                        notification, the Secretary, in 
                        consultation with the Secretary of 
                        State--
                                  (I) may suspend a country 
                                from the visa waiver program 
                                without prior notice;
                                  (II) shall notify any country 
                                suspended under subclause (I) 
                                and, to the extent practicable 
                                without disclosing sensitive 
                                intelligence sources and 
                                methods, provide justification 
                                for the suspension; and
                                  (III) shall restore the 
                                suspended country's 
                                participation in the visa 
                                waiver program upon a 
                                determination that the threat 
                                no longer poses an imminent 
                                danger to the United States or 
                                its citizens.
                  (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 Secretary of 
        Homeland Security, 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 
                Secretary of Homeland Security 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 Secretary of 
                Homeland Security.
                  (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.
          (8) Nonimmigrant visa refusal rate flexibility.--
                  (A) Certification.--
                          (i) In general.--On the date on which 
                        an air exit system is in place that can 
                        verify the departure of not less than 
                        97 percent of foreign nationals who 
                        exit through airports of the United 
                        States and the electronic system for 
                        travel authorization required under 
                        subsection (h)(3) is fully operational, 
                        the Secretary of Homeland Security 
                        shall certify to Congress that such air 
                        exit system and electronic system for 
                        travel authorization are in place.
                          (ii) Notification to congress.--The 
                        Secretary shall notify Congress in 
                        writing of the date on which the air 
                        exit system under clause (i) fully 
                        satisfies the biometric requirements 
                        specified in subsection (i).
                          (iii) Temporary suspension of waiver 
                        authority.--Notwithstanding any 
                        certification made under clause (i), if 
                        the Secretary has not notified Congress 
                        in accordance with clause (ii) by June 
                        30, 2009, the Secretary's waiver 
                        authority under subparagraph (B) shall 
                        be suspended beginning on July 1, 2009, 
                        until such time as the Secretary makes 
                        such notification.
                          (iv) Rule of construction.--Nothing 
                        in this paragraph shall be construed as 
                        in any way abrogating the reporting 
                        requirements under subsection (i)(3).
                  (B) Waiver.--After certification by the 
                Secretary under subparagraph (A), the 
                Secretary, in consultation with the Secretary 
                of State, may waive the application of 
                paragraph (2)(A) for a country if--
                          (i) the country meets all security 
                        requirements of this section;
                          (ii) the Secretary of Homeland 
                        Security determines that the totality 
                        of the country's security risk 
                        mitigation measures provide assurance 
                        that the country's participation in the 
                        program would not compromise the law 
                        enforcement, security interests, or 
                        enforcement of the immigration laws of 
                        the United States;
                          (iii) there has been a sustained 
                        reduction in the rate of refusals for 
                        nonimmigrant visas for nationals of the 
                        country and conditions exist to 
                        continue such reduction;
                          (iv) the country cooperated with the 
                        Government of the United States on 
                        counterterrorism initiatives, 
                        information sharing, and preventing 
                        terrorist travel before the date of its 
                        designation as a program country, and 
                        the Secretary of Homeland Security and 
                        the Secretary of State determine that 
                        such cooperation will continue; and
                          (v)(I) the rate of refusals for 
                        nonimmigrant visitor visas for 
                        nationals of the country during the 
                        previous full fiscal year was not more 
                        than ten percent; or
                          (II) the visa overstay rate for the 
                        country for the previous full fiscal 
                        year does not exceed the maximum visa 
                        overstay rate, once such rate is 
                        established under subparagraph (C).
                  (C) Maximum visa overstay rate.--
                          (i) Requirement to establish.--After 
                        certification by the Secretary under 
                        subparagraph (A), the Secretary and the 
                        Secretary of State jointly shall use 
                        information from the air exit system 
                        referred to in such subparagraph to 
                        establish a maximum visa overstay rate 
                        for countries participating in the 
                        program pursuant to a waiver under 
                        subparagraph (B). The Secretary of 
                        Homeland Security shall certify to 
                        Congress that such rate would not 
                        compromise the law enforcement, 
                        security interests, or enforcement of 
                        the immigration laws of the United 
                        States.
                          (ii) Visa overstay rate defined.--In 
                        this paragraph the term ``visa overstay 
                        rate'' means, with respect to a 
                        country, the ratio of--
                                  (I) the total number of 
                                nationals of that country who 
                                were admitted to the United 
                                States on the basis of a 
                                nonimmigrant visa whose periods 
                                of authorized stays ended 
                                during a fiscal year but who 
                                remained unlawfully in the 
                                United States beyond such 
                                periods; to
                                  (II) the total number of 
                                nationals of that country who 
                                were admitted to the United 
                                States on the basis of a 
                                nonimmigrant visa during that 
                                fiscal year.
                          (iii) Report and publication.--The 
                        Secretary of Homeland Security shall on 
                        the same date submit to Congress and 
                        publish in the Federal Register 
                        information relating to the maximum 
                        visa overstay rate established under 
                        clause (i). Not later than 60 days 
                        after such date, the Secretary shall 
                        issue a final maximum visa overstay 
                        rate above which a country may not 
                        participate in the program.
          (9) Discretionary security-related considerations.--
        In determining whether to waive the application of 
        paragraph (2)(A) for a country, pursuant to paragraph 
        (8), the Secretary of Homeland Security, in 
        consultation with the Secretary of State, shall take 
        into consideration other factors affecting the security 
        of the United States, including--
                  (A) airport security standards in the 
                country;
                  (B) whether the country assists in the 
                operation of an effective air marshal program;
                  (C) the standards of passports and travel 
                documents issued by the country; and
                  (D) other security-related factors, including 
                the country's cooperation with the United 
                States' initiatives toward combating terrorism 
                and the country's cooperation with the United 
                States intelligence community in sharing 
                information regarding terrorist threats.
          (10) Technical assistance.--The Secretary of Homeland 
        Security, in consultation with the Secretary of State, 
        shall provide technical assistance to program countries 
        to assist those countries in meeting the requirements 
        under this section. The Secretary of Homeland Security 
        shall ensure that the program office within the 
        Department of Homeland Security is adequately staffed 
        and has resources to be able to provide such technical 
        assistance, in addition to its duties to effectively 
        monitor compliance of the countries participating in 
        the program with all the requirements of the program.
          (11) Independent review.--
                  (A) In general.--Prior to the admission of a 
                new country into the program under this 
                section, and in conjunction with the periodic 
                evaluations required under subsection 
                (c)(5)(A), the Director of National 
                Intelligence shall conduct an independent 
                intelligence assessment of a nominated country 
                and member of the program.
                  (B) Reporting requirement.--The Director 
                shall provide to the Secretary of Homeland 
                Security, the Secretary of State, and the 
                Attorney General the independent intelligence 
                assessment required under subparagraph (A).
                  (C) Contents.--The independent intelligence 
                assessment conducted by the Director shall 
                include--
                          (i) a review of all current, credible 
                        terrorist threats of the subject 
                        country;
                          (ii) an evaluation of the subject 
                        country's counterterrorism efforts;
                          (iii) an evaluation as to the extent 
                        of the country's sharing of information 
                        beneficial to suppressing terrorist 
                        movements, financing, or actions;
                          (iv) an assessment of the risks 
                        associated with including the subject 
                        country in the program; and
                          (v) recommendations to mitigate the 
                        risks identified in clause (iv).
          (12) Designation of high risk program countries.--
                  (A) In general.--The Secretary of Homeland 
                Security, in consultation with the Director of 
                National Intelligence and the Secretary of 
                State, shall evaluate program countries on an 
                annual basis based on the criteria described in 
                subparagraph (B) and shall identify any program 
                country, the admission of nationals from which 
                under the visa waiver program under this 
                section, the Secretary determines presents a 
                high risk to the national security of the 
                United States.
                  (B) Criteria.--In evaluating program 
                countries under subparagraph (A), the Secretary 
                of Homeland Security, in consultation with the 
                Director of National Intelligence and the 
                Secretary of State, shall consider the 
                following criteria:
                          (i) The number of nationals of the 
                        country determined to be ineligible to 
                        travel to the United States under the 
                        program during the previous year.
                          (ii) The number of nationals of the 
                        country who were identified in United 
                        States Government databases related to 
                        the identities of known or suspected 
                        terrorists during the previous year.
                          (iii) The estimated number of 
                        nationals of the country who have 
                        traveled to Iraq or Syria at any time 
                        on or after March 1, 2011 to engage in 
                        terrorism.
                          (iv) The capacity of the country to 
                        combat passport fraud.
                          (v) The level of cooperation of the 
                        country with the counter-terrorism 
                        efforts of the United States.
                          (vi) The adequacy of the border and 
                        immigration control of the country.
                          (vii) Any other criteria the 
                        Secretary of Homeland Security 
                        determines to be appropriate.
                  (C) Suspension of designation.--The Secretary 
                of Homeland Security, in consultation with the 
                Secretary of State, may suspend the designation 
                of a program country based on a determination 
                that the country presents a high risk to the 
                national security of the United States under 
                subparagraph (A) until such time as the 
                Secretary determines that the country no longer 
                presents such a risk.
                  (D) Report.--Not later than 60 days after the 
                date of the enactment of this paragraph, and 
                annually thereafter, the Secretary of Homeland 
                Security, in consultation with the Director of 
                National Intelligence and the Secretary of 
                State, shall submit to the Committee on 
                Homeland Security, the Committee on Foreign 
                Affairs, the Permanent Select Committee on 
                Intelligence, and the Committee on the 
                Judiciary of the House of Representatives, and 
                the Committee on Homeland Security and 
                Governmental Affairs, the Committee on Foreign 
                Relations, the Select Committee on 
                Intelligence, and the Committee on the 
                Judiciary of the Senate a report, which 
                includes an evaluation and threat assessment of 
                each country determined to present a high risk 
                to the national security of the United States 
                under subparagraph (A).
  (d) Authority.--Notwithstanding any other provision of this 
section, the Secretary of Homeland Security, 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. The 
Secretary of Homeland Security may not waive any eligibility 
requirement under this section unless the Secretary notifies, 
with respect to the House of Representatives, the Committee on 
Homeland Security, the Committee on the Judiciary, the 
Committee on Foreign Affairs, and the Committee on 
Appropriations, and with respect to the Senate, the Committee 
on Homeland Security and Governmental Affairs, the Committee on 
the Judiciary, the Committee on Foreign Relations, and the 
Committee on Appropriations not later than 30 days before the 
effective date of such waiver.
  (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 Secretary of Homeland Security 
        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 Secretary of Homeland 
                Security, and
                  (D) to collect, provide, and share passenger 
                data as required under subsection (h)(1)(B).
          (2) Termination of agreements.--The Secretary of 
        Homeland Security 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 Secretary of Homeland 
                Security shall prescribe by regulation the 
                provision of such information as the Secretary 
                of Homeland Security 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 Secretary of 
                Homeland Security 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 Secretary of Homeland Security that a 
                program country's disqualification rate is 2 
                percent or more, the Secretary of Homeland 
                Security 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 
                Secretary of Homeland Security 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 Secretary of Homeland Security 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 Secretary of Homeland 
                Security 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 Secretary of Homeland Security shall 
                terminate the designation of the country as a 
                program country. If the Secretary of Homeland 
                Security determines that the program country 
                has developed a machine-readable passport 
                program and has a disqualification rate of less 
                than 2 percent, the Secretary of Homeland 
                Security 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 
        Secretary of Homeland Security and the Secretary of 
        State jointly determine that the program country is not 
        reporting the theft or loss of passports, as required 
        by subsection (c)(2)(D), the Secretary of Homeland 
        Security shall terminate the designation of the country 
        as a program country.
          (6) Failure to share information.--
                  (A) In general.--If the Secretary of Homeland 
                Security and the Secretary of State jointly 
                determine that the program country is not 
                sharing information, as required by subsection 
                (c)(2)(F), the Secretary of Homeland Security 
                shall terminate the designation of the country 
                as a program country.
                  (B) Redesignation.--In the case of a 
                termination under this paragraph, the Secretary 
                of Homeland Security shall redesignate the 
                country as a program country, without regard to 
                paragraph (2) or (3) of subsection (c) or 
                paragraphs (1) through (4), when the Secretary 
                of Homeland Security, in consultation with the 
                Secretary of State, determines that the country 
                is sharing information, as required by 
                subsection (c)(2)(F).
          (7) Failure to screen.--
                  (A) In general.--Beginning on the date that 
                is 270 days after the date of the enactment of 
                this paragraph, if the Secretary of Homeland 
                Security and the Secretary of State jointly 
                determine that the program country is not 
                conducting the screening required by subsection 
                (c)(2)(G), the Secretary of Homeland Security 
                shall terminate the designation of the country 
                as a program country.
                  (B) Redesignation.--In the case of a 
                termination under this paragraph, the Secretary 
                of Homeland Security shall redesignate the 
                country as a program country, without regard to 
                paragraph (2) or (3) of subsection (c) or 
                paragraphs (1) through (4), when the Secretary 
                of Homeland Security, in consultation with the 
                Secretary of State, determines that the country 
                is conducting the screening required by 
                subsection (c)(2)(G).
  (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 Secretary of Homeland Security 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 
                        Secretary of Homeland Security to be 
                        sufficient to permit the Secretary of 
                        Homeland Security to carry out this 
                        paragraph.
                          (iii) Calculation.--The system shall 
                        contain sufficient data to permit the 
                        Secretary of Homeland Security 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 
                        Secretary of Homeland Security 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 Secretary 
                        of Homeland Security 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 
                                Secretary of Homeland Security 
                                regarding the effectiveness of 
                                the automated entry and exit 
                                control system to be developed 
                                and implemented under this 
                                paragraph.
                                  (II) The recommendations of 
                                the Secretary of Homeland 
                                Security 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 Secretary of Homeland 
                Security 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 Secretary of Homeland 
                        Security 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 system for travel authorization.--
                  (A) System.--The Secretary of Homeland 
                Security, in consultation with the Secretary of 
                State, shall develop and implement a fully 
                automated electronic system for travel 
                authorization (referred to in this paragraph as 
                the ``System'') to collect such biographical 
                and other information as the Secretary of 
                Homeland Security determines necessary to 
                determine, in advance of travel, the 
                eligibility of, and whether there exists a law 
                enforcement or security risk in permitting, the 
                alien to travel to the United States.
                  (B) Fees.--
                          (i) In general.--No later than 6 
                        months after the date of enactment of 
                        the Travel Promotion Act of 2009, the 
                        Secretary of Homeland Security shall 
                        establish a fee for the use of the 
                        System and begin assessment and 
                        collection of that fee. The initial fee 
                        shall be the sum of--
                                  (I) [$10] $17 per travel 
                                authorization; and
                                  (II) an amount that will at 
                                least ensure recovery of the 
                                full costs of providing and 
                                administering the System, as 
                                determined by the Secretary.
                          (ii) Disposition of amounts 
                        collected.--Amounts collected under 
                        clause (i)(I) shall be credited to the 
                        Travel Promotion Fund established by 
                        subsection (d) of the Travel Promotion 
                        Act of 2009 (22 U.S.C. 2131(d)). 
                        Amounts collected under clause (i)(II) 
                        shall be transferred to the general 
                        fund of the Treasury and made available 
                        to pay the costs incurred to administer 
                        the System.
                          (iii) Sunset of travel promotion fund 
                        fee.--The Secretary may not collect the 
                        fee authorized by clause (i)(I) for 
                        fiscal years beginning after September 
                        30, 2027.
                  (C) Validity.--
                          (i) Period.--The Secretary of 
                        Homeland Security, in consultation with 
                        the Secretary of State, shall prescribe 
                        regulations that provide for a period, 
                        not to exceed three years, during which 
                        a determination of eligibility to 
                        travel under the program will be valid. 
                        Notwithstanding any other provision 
                        under this section, the Secretary of 
                        Homeland Security may revoke any such 
                        determination or shorten the period of 
                        eligibility under any such 
                        determination at any time and for any 
                        reason.
                          (ii) Limitation.--A determination by 
                        the Secretary of Homeland Security that 
                        an alien is eligible to travel to the 
                        United States under the program is not 
                        a determination that the alien is 
                        admissible to the United States.
                          (iii) Not a determination of visa 
                        eligibility.--A determination by the 
                        Secretary of Homeland Security that an 
                        alien who applied for authorization to 
                        travel to the United States through the 
                        System is not eligible to travel under 
                        the program is not a determination of 
                        eligibility for a visa to travel to the 
                        United States and shall not preclude 
                        the alien from applying for a visa.
                          (iv) Judicial review.--
                        Notwithstanding any other provision of 
                        law, no court shall have jurisdiction 
                        to review an eligibility determination 
                        under the System.
                  (D) Fraud detection.--The Secretary of 
                Homeland Security shall research opportunities 
                to incorporate into the System technology that 
                will detect and prevent fraud and deception in 
                the System.
                  (E) Additional and previous countries of 
                citizenship.--The Secretary of Homeland 
                Security shall collect from an applicant for 
                admission pursuant to this section information 
                on any additional or previous countries of 
                citizenship of that applicant. The Secretary 
                shall take any information so collected into 
                account when making determinations as to the 
                eligibility of the alien for admission pursuant 
                to this section.
                  (F) Report on certain limitations on 
                travel.--Not later than 30 days after the date 
                of the enactment of this subparagraph and 
                annually thereafter, the Secretary of Homeland 
                Security, in consultation with the Secretary of 
                State, shall submit to the Committee on 
                Homeland Security, the Committee on the 
                Judiciary, and the Committee on Foreign Affairs 
                of the House of Representatives, and the 
                Committee on Homeland Security and Governmental 
                Affairs, the Committee on the Judiciary, and 
                the Committee on Foreign Relations of the 
                Senate a report on the number of individuals 
                who were denied eligibility to travel under the 
                program, or whose eligibility for such travel 
                was revoked during the previous year, and the 
                number of such individuals determined, in 
                accordance with subsection (a)(6), to represent 
                a threat to the national security of the United 
                States, and shall include the country or 
                countries of citizenship of each such 
                individual.
  (i) Exit System.--
          (1) In general.--Not later than one year after the 
        date of the enactment of this subsection, the Secretary 
        of Homeland Security shall establish an exit system 
        that records the departure on a flight leaving the 
        United States of every alien participating in the visa 
        waiver program established under this section.
          (2) System requirements.--The system established 
        under paragraph (1) shall--
                  (A) match biometric information of the alien 
                against relevant watch lists and immigration 
                information; and
                  (B) compare such biometric information 
                against manifest information collected by air 
                carriers on passengers departing the United 
                States to confirm such aliens have departed the 
                United States.
          (3) Report.--Not later than 180 days after the date 
        of the enactment of this subsection, the Secretary 
        shall submit to Congress a report that describes--
                  (A) the progress made in developing and 
                deploying the exit system established under 
                this subsection; and
                  (B) the procedures by which the Secretary 
                shall improve the method of calculating the 
                rates of nonimmigrants who overstay their 
                authorized period of stay in the United States.

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