[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4954 Engrossed in House (EH)]
109th CONGRESS
2d Session
H. R. 4954
_______________________________________________________________________
AN ACT
To improve maritime and cargo security through enhanced layered
defenses, and for other purposes.
109th CONGRESS
2d Session
H. R. 4954
_______________________________________________________________________
AN ACT
To improve maritime and cargo security through enhanced layered
defenses, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Security and
Accountability For Every Port Act'' or ``SAFE Port Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
TITLE I--SECURITY OF UNITED STATES SEAPORTS
Subtitle A--General Provisions
Sec. 101. Definition of transportation security incident.
Sec. 102. Protocols for resumption of trade.
Sec. 103. Requirements relating to maritime facility security plans.
Sec. 104. Unannounced inspections of maritime facilities.
Sec. 105. Verification of individuals with access to secure areas of
seaports.
Sec. 106. Clarification on eligibility for transportation security
cards.
Sec. 107. Enhanced crewmember identification.
Sec. 108. Long-range vessel tracking.
Sec. 109. Maritime security command centers.
Subtitle B--Grant and Training Programs
Sec. 111. Port security grant program.
Sec. 112. Port security training program.
Sec. 113. Port security exercise program.
Subtitle C--Miscellaneous Provisions
Sec. 121. Increase in port of entry inspection officers.
Sec. 123. Border Patrol unit for United States Virgin Islands.
Sec. 124. Report on ownership and operation of United States seaports.
Sec. 125. Report on security operations at certain United States
seaports.
Sec. 126. Report on arrival and departure manifests for certain
commercial vessels in the United States
Virgin Islands.
Sec. 127. Center of Excellence for Maritime Domain Awareness.
Sec. 128. Report on security and trade at United States land ports.
TITLE II--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN
Sec. 201. Security of the international supply chain.
Sec. 202. Next generation supply chain security technologies.
Sec. 203. International trade data system.
Sec. 204. Foreign port assessments.
Sec. 205. Pilot program to improve the security of empty containers.
Sec. 206. Study and report on advanced imagery pilot programs.
Sec. 207. Report on National Targeting Center.
Sec. 208. Integrated Container Inspection System Pilot Project.
TITLE III--DIRECTORATE FOR POLICY, PLANNING, AND INTERNATIONAL AFFAIRS
Sec. 301. Establishment of Directorate.
Sec. 302. Study and report on customs revenue functions.
TITLE IV--OFFICE OF DOMESTIC NUCLEAR DETECTION
Sec. 401. Establishment of Office.
Sec. 402. Nuclear and radiological detection systems.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Maritime vessels are the primary mode of transportation
for international trade and they carry over 80 percent of
international trade by volume.
(2) In 2004, maritime vessels carried approximately
9,700,000 shipping containers into United States seaports at an
average of 27,000 containers per day.
(3) The security of the international container supply
chain and the maritime transportation system is critical for
the prosperity and liberty of all countries.
(4) In its final report, the National Commission on
Terrorist Attacks Upon the United States noted, ``While
commercial aviation remains a possible target, terrorists may
turn their attention to other modes of transportation.
Opportunities to do harm are as great, or greater in maritime
or surface transportation.''.
(5) In May 2002, the Brookings Institution estimated that
costs associated with United States port closures from a
detonated terrorist weapon could add up to $1 trillion from the
resulting economic slump and changes in our Nation's inability
to trade. Anticipated port closures on the west coast of the
United States could cost the United States economy $1 billion
per day for the first five days after a terrorist attack.
(6) Significant steps have been taken since the terrorist
attacks against the United States that occurred on September
11, 2001:
(A) Congress passed the Maritime Transportation
Security Act of 2002 on November 14, 2002.
(B) The Coast Guard issued a comprehensive set of
port security regulations on October 22, 2003.
(C) The International Maritime Organization adopted
the International Ship and Port Facility (ISPS) Code in
December 2002.
(D) The White House issued Homeland Security
Presidential Directive-13 in September 2005 which lays
out requirements for a comprehensive maritime security
policy.
(7) Through both public and private projects, the private
sector in the United States and overseas has worked with the
Department of Homeland Security to improve the security of the
movement of cargo through the international supply chain.
(8) Despite these steps, security gaps in the maritime
transportation system remain, resulting in high-risk container
systems not being checked overseas or domestically and ports
that are vulnerable to terrorist attacks similar to the attack
on the U.S.S. Cole.
(9) Significant enhancements can be achieved by applying a
multi-layered approach to supply chain security, in a
coordinated fashion. Current supply chain programs within the
Federal Government have been independently operated, often
falling short of gains which could have been made if such
programs were operated in a coordinated manner with clear
system standards and a framework that creates incentives for
security investments.
(10) While it is impossible to completely remove the risk
of a terrorist attack, security measures in the supply chain
can add certainty and stability to the global economy, raise
investor confidence, and facilitate trade. Some
counterterrorism costs are integral to the price that must be
paid to protect society. However, counterterrorism measures
also present an opportunity to increase the efficiency of the
global trade system through international harmonization of such
measures. These efficiency gains are maximized when all
countries adopt such counterterrorism measures.
(11) Increasing transparency in the supply chain will
assist in mitigating the impact of a terrorist attack by
allowing for a targeted shutdown of the international supply
chain and expedited restoration of commercial traffic.
(12) International trade is vital to the Nation's economy
and the well-being and livelihood of United States citizens.
(13) The Department of Homeland Security's missions,
including those related to United States and international
borders, involve both building security for United States
citizens and facilitating legitimate trade that is critical to
the Nation.
(14) In creating the Department of Homeland Security,
Congress clearly mandated in section 412(b) of the Homeland
Security Act of 2002 (6 U.S.C. 212(b)) that the customs revenue
functions described in paragraph (2) of such section shall not
be diminished.
SEC. 3. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' has the meaning given
the term in section 2(2) of the Homeland Security Act of 2002
(6 U.S.C. 101(2)).
(2) Department.--The term ``Department'' means the
Department of Homeland Security.
(3) International supply chain.--The term ``international
supply chain'' means the end-to-end process for shipping goods
from a point of origin overseas to and from the United States.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Homeland Security.
TITLE I--SECURITY OF UNITED STATES SEAPORTS
Subtitle A--General Provisions
SEC. 101. DEFINITION OF TRANSPORTATION SECURITY INCIDENT.
Section 70101(6) of title 46, United States Code, is amended by
inserting after ``economic disruption'' the following ``(other than
economic disruption caused by acts that are unrelated to terrorism and
are committed during a labor strike, demonstration, or other type of
labor unrest)''.
SEC. 102. PROTOCOLS FOR RESUMPTION OF TRADE.
(a) In General.--Section 70103(a)(2)(J) of title 46, United States
Code, is amended--
(1) by striking ``(J)'' and inserting ``(J)(i)''; and
(2) by adding at the end the following new clause:
``(ii) The plan required by clause (i) shall include
protocols for the resumption of trade in the event of a
transportation security incident that necessitates the
suspension of trade through contingency and continuity planning
that ensures trade lanes are restored as quickly as possible.
The protocols shall be developed by the Secretary, in
consultation with appropriate Federal, State, and local
officials, including the Coast Guard Captain of the Port
involved in the transportation security incident, and
representatives of the maritime industry. The protocols shall
provide for--
``(I) coordination with appropriate Federal, State,
and local agencies, the private sector, and appropriate
overseas entities in developing such contingency and
continuity planning;
``(II) coordination with appropriate Federal,
State, and local agencies and the private sector on law
enforcement actions, inter-modal rerouting plans, and
identification and prioritization of goods that may
enter the United States; and
``(III) designation of appropriate Federal
officials to work with port authorities to reestablish
the flow of cargo by prioritizing shipments based on
appropriate factors, including factors relating to
public health, national security, and economic need.''.
(b) Effective Date.--The Secretary of Homeland Security shall
develop the protocols described in section 70103(a)(2)(J)(ii) of title
46, United States Code, as added by subsection (a), not later than 180
days after the date of the enactment of this Act.
SEC. 103. REQUIREMENTS RELATING TO MARITIME FACILITY SECURITY PLANS.
(a) Facility Security Plans.--Section 70103(c)(3) of title 46,
United States Code, is amended--
(1) in subparagraph (F), by striking ``and'' at the end;
(2) in subparagraph (G), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(H) in the case of a security plan for a facility, be
resubmitted for approval of each change in the ownership or
operator of the facility that may substantially affect the
security of the facility.''.
(b) Facility Security Officers.--Section 70103(c) of title 46,
United States Code, is amended by adding at the end the following:
``(8)(A) The Secretary shall require that the qualified individual
having full authority to implement security actions for a facility
described in paragraph (2) shall be a citizen of the United States.
``(B) The Secretary may waive the requirement of subparagraph (A)
with respect to an individual if the Secretary determines that it is
appropriate to do so based on a complete background check of the
individual and a review of all terrorist watchlists to ensure that the
individual is not identified on any such terrorist watchlist.''.
(c) Facility Security Access.--Section 70103(c)(3)(C)(ii) of title
46, United States Code, is amended by adding at the end before the
semicolon the following: ``, including access by individuals engaged in
the surface transportation of intermodal containers in or out of a port
facility''.
SEC. 104. UNANNOUNCED INSPECTIONS OF MARITIME FACILITIES.
Subparagraph (D) of section 70103(c)(4) of title 46, United States
Code, is amended to read as follows:
``(D) verify the effectiveness of each such facility
security plan periodically, but not less than twice annually,
at least one of which shall be an inspection of the facility
that is conducted without notice to the facility.''.
SEC. 105. VERIFICATION OF INDIVIDUALS WITH ACCESS TO SECURE AREAS OF
SEAPORTS.
(a) Implementation of Requirements.--Notwithstanding any other
provision of law, the Secretary of Homeland Security shall--
(1) not later than July 15, 2006, issue a notice of
proposed rulemaking for regulations required to implement
section 70105 of title 46, United States Code;
(2) not later than November 15, 2006, issue final
regulations required to implement that section; and
(3) begin issuing transportation security cards to
individuals at seaports facilities under subsection (b) of that
section in accordance with the schedule contained in subsection
(b)(2) of this section.
(b) Transportation Security Cards.--
(1) Management.--Final regulations issued under subsection
(a)(2) shall provide for Federal management of the system for
issuing transportation security cards.
(2) Schedule for issuing transportation security cards at
seaports.--
(A) Not later than May 15, 2007, the Secretary
shall begin issuing transportation security cards to
individuals at the first 25 seaport facilities listed
on the facility vulnerability assessment issued by the
Secretary under section 70102 of title 46, United
States Code.
(B) Not later than November 15, 2007, the Secretary
shall begin issuing transportation security cards to
individuals at the next 30 seaport facilities listed on
that assessment.
(C) Not later than November 15, 2008, the Secretary
shall issue transportation security cards to
individuals at all other seaport facilities.
(c) Interim Verification of Individuals.--
(1) Terrorist watch list comparison and immigration records
check.--Not later than 90 days after the date of enactment of
this Act, the Secretary shall--
(A) complete a comparison of each individual who
has unescorted access to a secure area of a seaport
facility (as designated in an approved facility
security plan in accordance with section 70103(c) of
title 46, United States Code) against terrorist watch
lists to determine if the individual poses a threat;
and
(B) determine whether each such individual may be
denied admission to the United States, or removed from
the United States, under the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.).
(2) Continuing requirement.--In the case of an individual
who is given unescorted access to a secure area of a seaport
facility after the date on which the Secretary completes the
requirements of paragraph (1) and before the date on which the
Secretary begins issuing transportation security cards at the
seaport facility, the Secretary shall conduct a comparison of
the individual against terrorist watch lists and determine
whether the individual is lawfully present in the United
States.
(3) Interim final regulations.--In order to carry out this
subsection, the Secretary shall issue interim final regulations
to require submission to the Secretary of information necessary
to carry out the requirements of paragraph (1).
(4) Privacy requirements.--Terrorist watch list comparisons
and immigration records checks under this subsection shall be
carried out in accordance with the requirements of section 552a
of title 5, United States Code.
(5) Restrictions on use and maintenance of information.--
(A) Restriction on disclosure.--Information
obtained by the Secretary in the course of comparing
the individual against terrorist watch lists under this
subsection may not be made available to the public,
including the individual's employer.
(B) Confidentiality; use.--Any information
constituting grounds for prohibiting the employment of
an individual in a position described in paragraph
(1)(A) shall be maintained confidentially by the
Secretary and may be used only for making
determinations under this section. The Secretary may
share any such information with appropriate Federal,
State, local, and tribal law enforcement agencies.
(6) Terrorist watch lists defined.--In this subsection, the
term ``terrorist watch lists'' means all available information
on known or suspected terrorists or terrorist threats.
(d) Reporting.--Not later than 120 days after the date of enactment
of this Act, the Secretary shall submit to the appropriate
congressional committees a report containing information on--
(1) the number of matches made in conducting terrorist
watch list comparisons, and the number of individuals found to
be unlawfully present in the United States, under subsection
(c);
(2) the corresponding seaport facilities at which the
matches and unlawfully present individuals were identified; and
(3) the actions taken as a result of the terrorist
watchlist comparisons and immigration records checks under
subsection (c).
(e) Treatment of Individuals Receiving Hazardous Materials
Endorsements.--
(1) In general.--To the extent the Secretary determines
that the background records check conducted under section 5103a
of title 49, United States Code, and the background records
check conducted under section 70105 of title 46, United States
Code, are equivalent, the Secretary shall determine that an
individual does not pose a risk warranting denial of a
transportation security card issued under section 70105 of
title 46, United States Code, if such individual--
(A) has successfully completed a background records
check under section 5103a of title 49, United States
Code; and
(B) possesses a current and valid hazardous
materials endorsement in accordance with section 1572
of title 49, Code of Federal Regulations.
(2) Limitations.--Notwithstanding paragraph (1), the
Secretary may deny an individual a transportation security card
under section 70105 of title 46, United States Code, if the
Secretary has substantial evidence that the individual poses a
risk to national security.
(3) Reduction in fees.--The Secretary shall reduce, to the
extent practicable, any fees associated with obtaining a
transportation security card under section 70105 of title 46,
United States Code, for any individual referred to in paragraph
(1).
(f) Authorization of Appropriations.--There is authorized to be
appropriated $20,000,000 for fiscal year 2007 to carry out this
section.
SEC. 106. CLARIFICATION ON ELIGIBILITY FOR TRANSPORTATION SECURITY
CARDS.
Section 70105(c)(2) of title 46, United States Code, is amended by
inserting ``subparagraph (A), (B), or (D) of'' before ``paragraph
(1)''.
SEC. 107. ENHANCED CREWMEMBER IDENTIFICATION.
Section 70111 of title 46, United States Code, is amended--
(1) in subsection (a) by striking ``The'' and inserting
``Not later than May 15, 2007, the''; and
(2) in subsection (b) by striking ``The'' and inserting
``Not later than May 15, 2007, the''.
SEC. 108. LONG-RANGE VESSEL TRACKING.
(a) Regulations.--Section 70115 of title 46, United States Code is
amended in the first sentence by striking ``The Secretary'' and
inserting ``Not later than April 1, 2007, the Secretary''.
(b) Voluntary Program.--The Secretary of Homeland Security may
issue regulations to establish a voluntary long-range automated vessel
tracking system for vessels described in section 70115 of title 46,
United States Code, during the period before regulations are issued
under subsection (a) of such section.
SEC. 109. MARITIME SECURITY COMMAND CENTERS.
(a) In General.--Chapter 701 of title 46, United States Code, is
amended by adding at the end the following new section:
``Sec. 70122. Maritime security command centers
``(a) Establishment.--The Secretary, in consultation with
appropriate Federal, State, and local officials, shall establish an
integrated network of virtual and physical maritime security command
centers at appropriate United States seaports and maritime regions, as
determined by the Secretary, to--
``(1) enhance information sharing;
``(2) facilitate day-to-day operational coordination; and
``(3) in the case of a transportation security incident,
facilitate incident management and response.
``(b) Characteristics.--Each maritime security command center
described in subsection (a) shall--
``(1) be regionally based and utilize where available the
compositional and operational characteristics, facilities and
information technology systems of current operational centers
for port and maritime security and other similar existing
facilities and systems;
``(2) be adapted to meet the security needs, requirements,
and resources of the seaport and maritime region the center
will cover; and
``(3) to the maximum extent practicable, not involve the
construction of new facilities, but shall utilize information
technology, virtual connectivity, and existing facilities to
create an integrated, real-time communication and information
sharing network.
``(c) Participation.--
``(1) Federal participation.--The following entities shall
participate in the integrated network of maritime security
command centers described in subsection (a):
``(A) The Coast Guard.
``(B) U.S. Customs and Border Protection.
``(C) U.S. Immigration and Customs Enforcement.
``(D) Other appropriate Federal agencies.
``(2) State and local participation.--Appropriate State and
local law enforcement agencies may participate in the
integrated network of maritime security command centers
described in subsection (a).
``(d) Responsibilities.--Each maritime security command center
described in subsection (a) shall--
``(1) assist, as appropriate, in the implementation of
maritime transportation security plans developed under section
70103;
``(2) implement the transportation security incident
response plans required under section 70104;
``(3) carry out information sharing activities consistent
with those activities required under section 1016 of the
National Security Intelligence Reform Act of 2004 (6 U.S.C.
485) and the Homeland Security Information Sharing Act (6
U.S.C. 481 et seq.);
``(4) conduct short- and long-range vessel tracking under
sections 70114 and 70115; and
``(5) carry out such other responsibilities as determined
by the Secretary.
``(e) Security Clearances.--The Secretary shall sponsor and
expedite individuals participating in a maritime security command
center described in subsection (a) in gaining or maintaining their
security clearances. Through the Captain of the Port, the Secretary may
identify key individuals who should participate. In addition, the port
or other entities may appeal to the Captain of the Port for
sponsorship.
``(f) Security Incidents.--During a transportation security
incident involving the port, the Coast Guard Captain of the Port
designated by the Commandant of the Coast Guard in a maritime security
command center described in subsection (a) shall act as the incident
commander, unless otherwise directed by the President.
``(g) Rule of Construction.--Nothing in this section shall be
construed to affect the normal command and control procedures for
operational entities in the Department, unless so directed by the
Secretary.
``(h) Authorization of Appropriations.--There are authorized to be
appropriated $60,000,000 for each of the fiscal years 2007 through 2012
to carry out this section and section 108(c) of the Security and
Accountability For Every Port Act.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 701 of title 46, United States Code, is amended by adding at
the end the following:
``70122. Maritime security command centers.''.
(c) Implementation Plan and Budget Analysis.--The Secretary of
Homeland Security shall submit to the appropriate congressional
committees a plan for the implementation of section 70122 of title 46,
United States Code, as added by subsection (a), and a budget analysis
for the implementation of such section, including additional cost-
sharing arrangements with other Federal departments and agencies and
other participants involved in the maritime security command centers
described in such section, not later than 180 days after the date of
the enactment of this Act.
Subtitle B--Grant and Training Programs
SEC. 111. PORT SECURITY GRANT PROGRAM.
(a) In General.--Title V of the Homeland Security Act of 2002 (6
U.S.C. 311 et seq.) is amended--
(1) by redesignating the second section 510 (as added by
section 7303(d) of Public Law 108-458 (118 Stat. 3844)) as
section 511; and
(2) by adding at the end the following new section:
``SEC. 512. PORT SECURITY GRANT PROGRAM.
``(a) Grants Authorized.--The Secretary shall establish a grant
program to allocate Federal financial assistance to United States
seaports on the basis of risk and need.
``(b) Prioritization Process.--In awarding grants under this
section, the Secretary shall conduct an assessment of United States
seaports to develop a prioritization for awarding grants authorized
under subsection (a) based upon--
``(1) the most current risk assessment available from the
Department;
``(2) the national economic and strategic defense
considerations of individual ports; and
``(3) any other factors that the Secretary determines to be
appropriate.
``(c) Application.--
``(1) In general.--Any entity or facility subject to an
Area Maritime Transportation Security Plan required under
subsection (b) or (c) of section 70103 of title 46, United
States Code, may submit an application for a grant under this
section, at such time, in such form, and containing such
information and assurances as the Secretary may require.
``(2) Minimum standards for payment or reimbursement.--Each
application submitted under paragraph (1) shall include--
``(A) a comprehensive description of--
``(i) the purpose of the project for which
the applicant seeks a grant under this section
and why the applicant needs the grant;
``(ii) the applicability of the project to
the Area Maritime Transportation Security Plan
and other homeland security plans;
``(iii) the methodology for coordinating
the project into the security of the greater
port area, as identified in the Area Maritime
Transportation Security Plan;
``(iv) any existing cooperation or mutual
aid agreements with other port facilities,
vessels, organizations, or State, territorial,
and local governments as such agreements relate
to port security; and
``(v) a capital budget showing how the
applicant intends to allocate and expend the
grant funds;
``(B) a determination by the Captain of the Port
that the project--
``(i) addresses or corrects port security
vulnerabilities; and
``(ii) helps to ensure compliance with the
Area Maritime Transportation Security Plan.
``(3) Procedural safeguards.--The Secretary, in
consultation with the Office of the Inspector General and the
Office of Grants and Training, shall issue guidelines to
establish appropriate accounting, reporting, and review
procedures to ensure that--
``(A) grant funds are used for the purposes for
which they were made available;
``(B) grantees have properly accounted for all
expenditures of grant funds; and
``(C) grant funds not used for such purposes and
amounts not obligated or expended are returned.
``(d) Use of Funds.--Grants awarded under this section may be
used--
``(1) to help implement Area Maritime Transportation
Security Plans required under section 70103(b) of title 46,
United States Code, or the vessel or facility security plans
required under section 70103(c) of title 46, United States
Code;
``(2) to remedy port security vulnerabilities identified
through vulnerability assessments approved by the Secretary;
``(3) for non-Federal projects contributing to the overall
security of a seaport or a system of United States seaports, as
determined by the Secretary;
``(4) for the salaries, benefits, overtime compensation,
and other costs of additional security personnel for State and
local agencies for activities required by the Area Maritime
Transportation Security Plan for a seaport area if the
Secretary--
``(A) increases the threat level under the Homeland
Security Advisory System to Code Orange or Code Red; or
``(B) raises the Maritime Security level to MARSEC
Level 2 or 3;
``(5) for the cost of acquisition, operation, and
maintenance of equipment that contributes to the overall
security of the port area, as identified in the Area Maritime
Transportation Security Plan, if the need is based upon
vulnerability assessments approved by the Secretary or
identified in the Area Maritime Security Plan;
``(6) to conduct vulnerability assessments approved by the
Secretary;
``(7) to purchase or upgrade equipment, including
communications equipment that is interoperable with Federal,
State, and local agencies and computer software, to enhance
terrorism preparedness;
``(8) to conduct exercises or training for prevention and
detection of, preparedness for, response to, or recovery from
terrorist attacks;
``(9) to establish or enhance mechanisms for sharing
terrorism threat information and to ensure that the mechanisms
are interoperable with Federal, State, and local agencies;
``(10) for the cost of equipment (including software)
required to receive, transmit, handle, and store classified
information;
``(11) for the protection of critical infrastructure
against potential attack by the addition of barriers, fences,
gates, and other such devices, except that the cost of such
measures may not exceed the greater of--
``(A) $1,000,000 per project; or
``(B) such greater amount as may be approved by the
Secretary, which may not exceed 10 percent of the total
amount of the grant;
``(12) to conduct port-wide exercises to strengthen
emergency preparedness of Federal, State, territorial, and
local officials responsible for port security, including law
enforcement personnel and firefighters and other first
responders, in support of the Area Maritime Security Plan; and
``(13) for the purpose of enhancing supply-chain security
at truck inspection stations in or near high volume seaports in
coordination with States and local government.
``(e) Reimbursement of Costs.--An applicant for a grant under this
section may petition the Secretary for the reimbursement of the cost of
any activity relating to prevention (including detection) of,
preparedness for, response to, or recovery from acts of terrorism that
is a Federal duty and usually performed by a Federal agency, and that
is being performed by a State or local government (or both) under
agreement with a Federal agency.
``(f) Prohibited Uses.--Grants awarded under this section may not
be used to--
``(1) supplant State or local funds for activities of the
type described in subsection (d);
``(2) construct buildings or other physical facilities;
``(3) acquire land; or
``(4) make any State or local government cost-sharing
contribution.
``(g) Matching Requirement.--
``(1) In general.--Except as provided in subparagraph (A)
or (B) of paragraph (2), Federal funds for any eligible project
under this section shall not exceed 75 percent of the total
cost of such project.
``(2) Exceptions.--
``(A) Small projects.--The requirement of paragraph
(1) shall not apply with respect to a project with a
total cost of not more than $25,000.
``(B) Higher level of federal support required.--
The requirement of paragraph (1) shall not apply with
respect to a project if the Secretary determines that
the project merits support and cannot be undertaken
without a higher rate of Federal support than the rate
described in paragraph (1).
``(3) In-kind contributions.--Each recipient of a grant
under this section may meet the requirement of paragraph (1) by
making in-kind contributions of goods or services that are
directly linked with the purpose for which the grant is made,
as determined by the Secretary, including any necessary
personnel expenses, contractor services, administrative costs,
equipment, fuel, or maintenance, and rental space.
``(h) Multiple Phase Projects.--
``(1) In general.--The Secretary may award grants under
this section for projects that span multiple years.
``(2) Funding limitation.--Not more than 20 percent of the
total grant funds awarded under this section in any fiscal year
may be awarded for projects that span multiple years.
``(i) Consistency With Plans.--The Secretary shall ensure that each
grant awarded under this section--
``(1) is used to supplement and support, in a consistent
and coordinated manner, the applicable Area Maritime
Transportation Security Plan; and
``(2) is coordinated with any applicable State or Urban
Area Homeland Security Plan.
``(j) Coordination and Cooperation.--The Secretary--
``(1) shall ensure that all projects that receive grant
funding under this section within any area defined in an Area
Maritime Transportation Security Plan are coordinated with
other projects in such area; and
``(2) may require cooperative agreements among users of the
seaport and seaport facilities with respect to projects funded
under this section.
``(k) Review and Audits.--The Secretary shall require all grantees
under this section to maintain such records as the Secretary may
require and make such records available for review and audit by the
Secretary, the Comptroller General of the United States, or the
Inspector General of the Department.
``(l) Quarterly Reports Required as a Condition of Homeland
Security Grants.--
``(1) Expenditure reports required.--As a condition of
receiving a grant under this section, the Secretary shall
require the grant recipient to submit quarterly reports to the
Secretary that describe each expenditure made by the recipient
using grant funds.
``(2) Deadline for reports.--Each report required under
paragraph (1) shall be submitted not later than 30 days after
the last day of a fiscal quarter and shall describe
expenditures made during that fiscal quarter.
``(3) Publication of expenditures.--
``(A) In general.--Not later than one week after
receiving a report under this subsection, the Secretary
shall publish and make publicly available on the
Internet website of the Department a description of
each expenditure described in the report.
``(B) Waiver.--The Secretary may waive the
requirement of subparagraph (A) if the Secretary
determines that it is in the national security
interests of the United States to do so.
``(m) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
$400,000,000 for each of fiscal years 2007 through 2012 to
carry out this section.
``(2) Source of funds.--Amounts authorized to be
appropriated under paragraph (1) shall originate from duties
collected by U.S. Customs and Border Protection.''.
(b) Clerical Amendment.--The table of contents in section 1(b) of
the Homeland Security Act of 2002 (116 Stat. 2135) is amended by
inserting after the item relating to section 509 the following:
``Sec. 510. Procurement of security countermeasures for strategic
national stockpile.
``Sec. 511. Urban and other high risk area communications capabilities.
``Sec. 512. Port security grant program.''.
(c) Repeal.--
(1) In general.--Section 70107 of title 46, United States
Code, is hereby repealed.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 701 of title 46, United States Code, is
amended by striking the item relating to section 70107.
SEC. 112. PORT SECURITY TRAINING PROGRAM.
(a) In General.--Subtitle A of title VIII of the Homeland Security
Act of 2002 (6 U.S.C. 361) is amended by adding at the end the
following new section:
``SEC. 802. PORT SECURITY TRAINING PROGRAM.
``(a) In General.--The Secretary, acting through the Assistant
Secretary for Grants and Training and in coordination with components
of the Department with maritime security expertise, including the Coast
Guard, the Transportation Security Administration, and U.S. Customs and
Border Protection, shall establish a Port Security Training Program
(hereinafter in this section referred to as the `Program') for the
purpose of enhancing the capabilities of each of the Nation's
commercial seaports to prevent, prepare for, respond to, mitigate
against, and recover from threatened or actual acts of terrorism,
natural disasters, and other emergencies.
``(b) Requirements.--The Program shall provide validated training
that--
``(1) reaches multiple disciplines, including Federal,
State, and local government officials, commercial seaport
personnel and management, and governmental and nongovernmental
emergency response providers;
``(2) provides training at the awareness, performance, and
management and planning levels;
``(3) utilizes multiple training mediums and methods,
including--
``(A) direct delivery;
``(B) train-the-trainer;
``(C) computer-based training;
``(D) web-based training; and
``(E) video teleconferencing;
``(4) addresses port security topics, including--
``(A) seaport security plans and procedures,
including how security plans and procedures are
adjusted when threat levels increase;
``(B) seaport security force operations and
management;
``(C) physical security and access control at
seaports;
``(D) methods of security for preventing and
countering cargo theft;
``(E) container security;
``(F) recognition and detection of weapons,
dangerous substances, and devices;
``(G) operation and maintenance of security
equipment and systems;
``(H) security threats and patterns;
``(I) security incident procedures, including
procedures for communicating with governmental and
nongovernmental emergency response providers; and
``(J) evacuation procedures;
``(5) is consistent with, and supports implementation of,
the National Incident Management System, the National Response
Plan, the National Infrastructure Protection Plan, the National
Preparedness Guidance, the National Preparedness Goal, and
other such national initiatives;
``(6) is evaluated against clear and consistent performance
measures;
``(7) addresses security requirements under facility
security plans; and
``(8) educates, trains, and involves populations of at-risk
neighborhoods around ports, including training on an annual
basis for neighborhoods to learn what to be watchful for in
order to be a `citizen corps', if necessary.
``(c) National Voluntary Consensus Standards.--The Secretary
shall--
``(1) support the development, promulgation, and regular
updating as necessary of national voluntary consensus standards
for port security training; and
``(2) ensure that the training provided under this section
is consistent with such standards.
``(d) Training Partners.--In developing and delivering training
under the Program, the Secretary shall--
``(1) work with government training facilities, academic
institutions, private organizations, employee organizations,
and other entities that provide specialized, state-of-the-art
training for governmental and nongovernmental emergency
responder providers or commercial seaport personnel and
management; and
``(2) utilize, as appropriate, training courses provided by
community colleges, public safety academies, State and private
universities, and other facilities.
``(e) Consultation.--The Secretary shall ensure that, in carrying
out the Program, the Office of Grants and Training shall consult with--
``(1) a geographic and substantive cross section of
governmental and nongovernmental emergency response providers;
and
``(2) commercial seaport personnel and management.
``(f) Commercial Seaport Personnel Defined.--For purposes of this
section, the term `commercial seaport personnel' means any person
engaged in an activity relating to the loading or unloading of cargo,
the movement or tracking of cargo, the maintenance and repair of
intermodal equipment, the operation of cargo-related equipment (whether
or not integral to the vessel), and the handling of mooring lines on
the dock when a vessel is made fast or let go, in the United States or
the coastal waters thereof.''.
(b) Clerical Amendment.--The table of contents in section 1(b) of
the Homeland Security Act of 2002 (116 Stat. 2135) is amended by
inserting after the item relating to section 801 the following:
``Sec. 802. Port security training program.''.
(c) Vessel and Facility Security Plans.--Section 70103(c)(3) of
title 46, United States Code, is amended--
(1) in subparagraph (E), by striking ``the training,
periodic unannounced drills, and'';
(2) by redesignating subparagraphs (F) and (G) as
subparagraphs (G) and (H), respectively; and
(3) by inserting after subparagraph (E) the following new
subparagraph:
``(F) provide a strategy and timeline for conducting
training and periodic unannounced drills for persons on the
vessel or at the facility to be carried out under the plan to
deter, to the maximum extent practicable, a transportation
security incident or a substantial threat of such a
transportation security incident;''.
SEC. 113. PORT SECURITY EXERCISE PROGRAM.
(a) In General.--Subtitle A of title VIII of the Homeland Security
Act of 2002 (6 U.S.C. 361), as amended by section 112, is further
amended by adding at the end the following new section:
``SEC. 803. PORT SECURITY EXERCISE PROGRAM.
``(a) In General.--The Secretary, acting through the Assistant
Secretary for Grants and Training, shall establish a Port Security
Exercise Program (hereinafter in this section referred to as the
`Program') for the purpose of testing and evaluating the capabilities
of Federal, State, local, and foreign governments, commercial seaport
personnel and management, governmental and nongovernmental emergency
response providers, the private sector, or any other organization or
entity, as the Secretary determines to be appropriate, to prevent,
prepare for, mitigate against, respond to, and recover from acts of
terrorism, natural disasters, and other emergencies at commercial
seaports.
``(b) Requirements.--The Secretary, acting through the Assistant
Secretary for Grants and Training and in coordination with components
of the Department with maritime security expertise, including the Coast
Guard, the Transportation Security Administration, and U.S. Customs and
Border Protection, shall ensure that the Program--
``(1) consolidates all existing port security exercise
programs administered by the Department;
``(2) conducts, on a periodic basis, port security
exercises at commercial seaports that are--
``(A) scaled and tailored to the needs of each
port;
``(B) live in the case of the most at-risk ports;
``(C) as realistic as practicable and based on
current risk assessments, including credible threats,
vulnerabilities, and consequences;
``(D) consistent with the National Incident
Management System, the National Response Plan, the
National Infrastructure Protection Plan, the National
Preparedness Guidance, the National Preparedness Goal,
and other such national initiatives;
``(E) evaluated against clear and consistent
performance measures;
``(F) assessed to learn best practices, which shall
be shared with appropriate Federal, State, and local
officials, seaport personnel and management;
governmental and nongovernmental emergency response
providers, and the private sector; and
``(G) followed by remedial action in response to
lessons learned; and
``(3) assists State and local governments and commercial
seaports in designing, implementing, and evaluating exercises
that--
``(A) conform to the requirements of paragraph (2);
and
``(B) are consistent with any applicable Area
Maritime Transportation Security Plan and State or
Urban Area Homeland Security Plan.
``(c) Remedial Action Management System.--The Secretary, acting
through the Assistant Secretary for Grants and Training, shall
establish a Remedial Action Management System to--
``(1) identify and analyze each port security exercise for
lessons learned and best practices;
``(2) disseminate lessons learned and best practices to
participants in the Program;
``(3) monitor the implementation of lessons learned and
best practices by participants in the Program; and
``(4) conduct remedial action tracking and long-term trend
analysis.
``(d) Grant Program Factor.--In evaluating and prioritizing
applications for Federal financial assistance under section 512, the
Secretary shall give additional consideration to those applicants that
have conducted port security exercises under this section.
``(e) Consultation.--The Secretary shall ensure that, in carrying
out the Program, the Office of Grants and Training shall consult with--
``(1) a geographic and substantive cross section of
governmental and nongovernmental emergency response providers;
and
``(2) commercial seaport personnel and management.
``(f) Commercial Seaport Personnel Defined.--For purposes of this
section, the term `commercial seaport personnel' means any person
engaged in an activity relating to the loading or unloading of cargo,
the movement or tracking of cargo, the maintenance and repair of
intermodal equipment, the operation of cargo-related equipment (whether
or not integral to the vessel), and the handling of mooring lines on
the dock when a vessel is made fast or let go, in the United States or
the coastal waters thereof.''.
(b) Clerical Amendment.--The table of contents in section 1(b) of
the Homeland Security Act of 2002 (116 Stat. 2135), as amended by
section 112, is further amended by inserting after the item relating to
section 802 the following:
``Sec. 803. Port security exercise program.''.
Subtitle C--Miscellaneous Provisions
SEC. 121. INCREASE IN PORT OF ENTRY INSPECTION OFFICERS.
(a) In General.--The Secretary of Homeland Security shall increase
by not less than 200 the number of positions for full-time active duty
port of entry inspection officers of the Department of Homeland
Security for each of the fiscal years 2007 through 2012.
(b) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out subsection (a) the following
amounts for the following fiscal years:
(1) $20,000,000 for fiscal year 2007.
(2) $40,000,000 for fiscal year 2008.
(3) $60,000,000 for fiscal year 2009.
(4) $80,000,000 for fiscal year 2010.
(5) $100,000,000 for fiscal year 2011.
(6) $120,000,000 for fiscal year 2012.
SEC. 123. BORDER PATROL UNIT FOR UNITED STATES VIRGIN ISLANDS.
Not later than 180 days after the date of the enactment of this
Act, the Secretary of Homeland Security shall establish at least one
Border Patrol unit for the Virgin Islands of the United States.
SEC. 124. REPORT ON OWNERSHIP AND OPERATION OF UNITED STATES SEAPORTS.
Not later than 180 days after the date of the enactment of this
Act, the Secretary of Homeland Security shall submit to the appropriate
congressional committees a report that contains--
(1) the name of each individual or entity that leases,
operates, manages, or owns real property or facilities at each
United States seaport; and
(2) any other information that the Secretary determines to
be appropriate.
SEC. 125. REPORT ON SECURITY OPERATIONS AT CERTAIN UNITED STATES
SEAPORTS.
(a) Study.--The Secretary of Homeland Security shall conduct a
study on the adequacy of security operations at the ten United States
seaports that load and unload the largest amount of containers.
(b) Report.--Not later than 270 days after the date of the
enactment of this Act, the Secretary shall submit to the appropriate
congressional committees a report on the results of the study required
by subsection (a).
SEC. 126. REPORT ON ARRIVAL AND DEPARTURE MANIFESTS FOR CERTAIN
COMMERCIAL VESSELS IN THE UNITED STATES VIRGIN ISLANDS.
Not later than 90 days after the date of the enactment of this Act,
the Secretary of Homeland Security shall submit to the appropriate
congressional committees a report on the impact of implementing the
requirements of section 231 of the Immigration and Nationality Act (8
U.S.C. 1221) (relating to providing United States border officers with
arrival and departure manifests) with respect to commercial vessels
that are fewer than 300 gross tons and operate exclusively between the
territorial waters of the United States Virgin Islands and the
territorial waters of the British Virgin Islands.
SEC. 127. CENTER OF EXCELLENCE FOR MARITIME DOMAIN AWARENESS.
(a) Establishment.--The Secretary of the Homeland Security shall
establish a university-based Center for Excellence for Maritime Domain
Awareness following the merit-review processes and procedures that have
been established by the Secretary for selecting university program
centers of excellence.
(b) Duties.--The Center shall--
(1) prioritize its activities based on the ``National Plan
to Improve Maritime Domain Awareness'' published by the
Department of Homeland Security in October 2005;
(2) recognize the extensive previous and ongoing work and
existing competence in the field of maritime domain awareness
at numerous academic and research institutions, such as the
Naval Postgraduate School;
(3) leverage existing knowledge and continue development of
a broad base of expertise within academia and industry in
maritime domain awareness; and
(4) provide educational, technical, and analytical
assistance to Federal agencies with responsibilities for
maritime domain awareness, including the Coast Guard, to focus
on the need for interoperability, information sharing, and
common information technology standards and architecture.
SEC. 128. REPORT ON SECURITY AND TRADE AT UNITED STATES LAND PORTS.
(a) Study.--The Secretary of Homeland Security shall conduct a
study on the challenges to balance the need for greater security while
maintaining the efficient flow of trade at United States land ports.
(b) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall submit to the appropriate
congressional committees a report on the results of the study required
by subsection (a).
TITLE II--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN
SEC. 201. SECURITY OF THE INTERNATIONAL SUPPLY CHAIN.
(a) In General.--The Homeland Security Act of 2002 (6 U.S.C. 101 et
seq.) is amended by adding at the end the following new title:
``TITLE XVIII--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN
``Subtitle A--General Provisions
``SEC. 1801. STRATEGIC PLAN TO ENHANCE THE SECURITY OF THE
INTERNATIONAL SUPPLY CHAIN.
``(a) Strategic Plan.--The Secretary, in consultation with
appropriate Federal, State, local, and tribal government agencies and
private sector stakeholders responsible for security matters that
affect or relate to the movement of containers through the
international supply chain, shall develop and implement, and update as
appropriate, a strategic plan to enhance the security of the
international supply chain.
``(b) Requirements.--The strategic plan required under subsection
(a) shall--
``(1) describe the roles, responsibilities, and authorities
of Federal, State, local, and tribal government agencies and
private sector stakeholders that relate to the security of the
movement of containers through the international supply chain;
``(2) identify and address gaps and unnecessary overlaps in
the roles, responsibilities, or authorities described in
paragraph (1);
``(3) identify and make recommendations regarding
legislative, regulatory, and organizational changes necessary
to improve coordination among the entities or to enhance the
security of the international supply chain;
``(4) provide measurable goals, including objectives,
mechanisms, and a schedule, for furthering the security of
commercial operations from point of origin to point of
destination;
``(5) build on available resources and consider costs and
benefits;
``(6) provide incentives for additional voluntary measures
to enhance cargo security, as determined by the Secretary;
``(7) consider the impact of supply chain security
requirements on small and medium size companies;
``(8) include a process for sharing intelligence and
information with private sector stakeholders to assist in their
security efforts;
``(9) identify a framework for prudent and measured
response in the event of a transportation security incident
involving the international supply chain;
``(10) provide a plan for the expeditious resumption of the
flow of legitimate trade in accordance with section
70103(a)(2)(J)(ii) of title 46, United States Code;
``(11) consider the linkages between supply chain security
and security programs within other systems of movement,
including travel security and terrorism finance programs; and
``(12) expand upon and relate to existing strategies and
plans, including the National Strategy for Maritime Security
and the eight supporting plans of the Strategy, as required by
Homeland Security Presidential Directive-13 (September 2005).
``(c) Utilization of Advisory Committees.--As part of the
consultations described in subsection (a), the Secretary shall, to the
extent practicable, utilize the Homeland Security Advisory Committee,
the National Maritime Security Advisory Committee, and the Commercial
Operations Advisory Committee to review, as necessary, the draft
strategic plan and any subsequent updates to the strategic plan.
``(d) International Standards and Practices.--In furtherance of the
strategic plan required under subsection (a), the Secretary is
encouraged to consider proposed or established standards and practices
of foreign governments and international organizations, including the
International Maritime Organization, the World Customs Organization,
the International Labor Organization, and the International
Organization for Standardization, as appropriate, to establish
standards and best practices for the security of containers moving
through the international supply chain.
``(e) Report.--
``(1) Initial report.--The Secretary shall submit to the
appropriate congressional committees a report that contains the
strategic plan required by subsection (a).
``(2) Final report.--Not later than three years after the
date on which the strategic plan is submitted under paragraph
(1), the Secretary shall submit to the appropriate
congressional committees a report that contains an update of
the strategic plan.
``(f) Definition.--In this section, the term `transportation
security incident' has the meaning given the term in section 70101(6)
of title 46, United States Code.
``SEC. 1802. TRANSMISSION OF ADDITIONAL DATA ELEMENTS FOR IMPROVED HIGH
RISK TARGETING.
``(a) Requirement.--The Secretary shall require transmission to the
Department, through an electronic data interchange system, of
additional data elements for improved high risk targeting, including
appropriate security elements of entry data, as determined by the
Secretary, to be provided as advanced information with respect to cargo
destined for importation into the United States prior to loading of
such cargo on vessels at foreign seaports.
``(b) Regulations.--The Secretary shall promulgate regulations to
carry out this section. In promulgating such regulations, the Secretary
shall adhere to the parameters applicable to the development of
regulations under section 343(a) of the Trade Act of 2002 (19 U.S.C.
2071 note), including provisions relating to consultation, technology,
analysis, use of information, confidentiality, and timing requirements.
``SEC. 1803. PLAN TO IMPROVE THE AUTOMATED TARGETING SYSTEM.
``(a) Plan.--The Secretary shall develop and implement a plan to
improve the Automated Targeting System for the identification of high-
risk containers moving through the international supply chain.
``(b) Contents.--
``(1) Treatment of recommendations.--The Secretary shall
include in the plan required under subsection (a) a schedule to
address the recommendations of the Comptroller General of the
United States, the Inspector General of the Department of the
Treasury, and the Inspector General of the Department of
Homeland Security with respect to the operation of the
Automated Targeting System.
``(2) Information submissions.--In developing the plan
required under subsection (a), the Secretary shall consider the
cost, benefit, and feasibility of--
``(A) requiring additional nonmanifest
documentation for each container;
``(B) adjusting the time period allowed by law for
revisions to a container cargo manifest;
``(C) adjusting the time period allowed by law for
submission of entry data for vessel or cargo; and
``(D) such other actions the Secretary considers
beneficial for improving the information relied upon
for the Automated Targeting System and any other
targeting systems in furthering the security and
integrity of the international supply chain.
``(3) Outside review.--The Secretary shall conduct, through
an independent panel, a review of the Automated Targeting
System. The results of this review shall be included in the
plan required under subsection (a).
``(4) Smart system.--The Secretary shall consider future
iterations of the Automated Targeting System, which would
incorporate smart features, such as more complex algorithms and
real-time intelligence, instead of relying solely on rule sets
that are periodically updated. The Secretary shall also
consider how the Automated Targeting System could be improved
through linkages with targeting systems in existence on the
date of the enactment of the Security and Accountability For
Every Port Act for travel security and terrorism finance
programs.
``(c) New or Expanded Information Submissions.--In considering any
new or expanded information submission requirements, the Secretary
shall consult with stakeholders and identify the need for such
information, provide safeguards that ensure confidentiality with
respect to such information, and identify appropriate timing of the
submission of such information, in the plan required under subsection
(a).
``(d) Secure Transmission of Certain Information.--All information
required by the Department from supply chain partners shall be
transmitted in a secure fashion, as determined by the Secretary, so as
to protect the information from unauthorized access.
``(e) Authorization of Appropriations.--There are authorized to be
appropriated $5,000,000 for each of the fiscal years 2007 through 2012
to carry out this section.
``SEC. 1804. CONTAINER STANDARDS AND VERIFICATION PROCEDURES.
``(a) Establishment.--
``(1) In general.--The Secretary shall establish minimum
standards and verification procedures for securing containers
in transit to the United States relating to the sealing of
containers.
``(2) Deadline for enforcement.--Not later than two years
after the date on which the standards and procedures are
established pursuant to paragraph (1), all containers bound for
ports of entry in the United States shall meet such standards
and procedures.
``(b) Review and Enhancement.--The Secretary shall regularly--
``(1) review the standards and procedures established
pursuant to subsection (a); and
``(2) enhance the security standards and procedures, as
appropriate, based on tests of technologies as they become
commercially available to detect container intrusion and the
highest consequence threats, particularly weapons of mass
destruction.
``(c) International Cargo Security Standards.--The Secretary, in
consultation with the Secretary of State, is encouraged to promote and
establish international standards for the security of containers moving
through the international supply chain with foreign governments and
international organizations, including the International Maritime
Organization and the World Customs Organization.
``(d) International Trade and Other Obligations.--In carrying out
this section, the Secretary shall consult with appropriate Federal
departments and agencies and private sector stakeholders and ensure
that actions under this section do not violate international trade
obligations or other international obligations of the United States.
``SEC. 1805. CONTAINER SECURITY INITIATIVE (CSI).
``(a) Authorization.--The Secretary is authorized to establish and
implement a program (to be known as the `Container Security Initiative'
or `CSI') to identify and examine maritime containers that pose a risk
for terrorism at foreign ports before the containers are shipped to the
United States.
``(b) Assessment.--Before the Secretary designates any foreign port
under CSI, the Secretary, in consultation with other Federal officials,
as appropriate, shall conduct an assessment of the port, including--
``(1) the level of risk for the potential compromise of
containers by terrorists or terrorist weapons;
``(2) the volume of regular container traffic to United
States ports;
``(3) the results of the Coast Guard assessments conducted
pursuant to section 70108 of title 46, United States Code;
``(4) the commitment of the host nation to cooperating with
the Department in sharing critical data and risk management
information and to maintain programs to ensure employee
integrity; and
``(5) the potential for validation of security practices by
the Department.
``(c) Notification.--The Secretary shall notify the appropriate
congressional committees prior to notifying the public of the
designation of a foreign port under CSI.
``(d) Inspections.--
``(1) Requirements and procedures.--The Secretary shall--
``(A) establish technical capability criteria and
standard operating procedures for the use of
nonintrusive inspection and nuclear and radiological
detection systems in conjunction with CSI;
``(B) require each port designated under CSI to
operate nonintrusive inspection and nuclear and
radiological detection systems in accordance with the
technical capability criteria and standard operating
procedures established under subparagraph (A); and
``(C) continually monitor the technologies,
processes, and techniques used to inspect cargo at
ports designated under CSI.
``(2) Consistency of standards and procedures.--The
Secretary shall ensure that the technical capability criteria
and standard operating procedures established under paragraph
(1)(A) are consistent with such standards and procedures of any
other department or agency of the Federal government with
respect to deployment of nuclear and radiological detection
systems outside the United States.
``(3) Foreign assistance.--
``(A) In general.--The Secretary, in consultation
with the Secretary of State, the Secretary of Energy,
and the heads of other Federal agencies, shall identify
foreign assistance programs that could facilitate the
implementation of cargo security antiterrorism measures
at ports designated under CSI and foreign ports not
designated under CSI that lack effective antiterrorism
measures.
``(B) Acquisition.--The Secretary is authorized to
loan or otherwise assist in the deployment of
nonintrusive inspection or nuclear and radiological
detection systems for cargo containers at each
designated CSI port under such terms and conditions as
the Secretary determines to be appropriate and to
provide training for foreign personnel involved in CSI.
``(e) Prohibition.--
``(1) In general.--The Secretary shall issue a `do not
load' order to each port designated under CSI to prevent the
onload of any cargo that has been identified as higher risk by
the Automated Targeting System unless the cargo--
``(A) is scanned with a non intrusive imagery
device and nuclear or radiological detection equipment;
``(B) is devanned and inspected with nuclear or
radiological detection equipment; or
``(C) is determined to be of lower risk following
additional inquiries by appropriate personnel of U.S.
Customs and Border Protection.
``(2) Rule of construction.--Nothing in this subsection
shall be construed to interfere with the ability of the
Secretary to deny entry of any cargo into the United States.
``(f) Report.--The Secretary shall submit to the appropriate
congressional committees not later than March 1 of each year a report
on the status of CSI, including--
``(1) a description of the security improvements gained
through CSI;
``(2) the rationale for the continuance of each port
designated under CSI;
``(3) an assessment of the personnel needs at each port
designated under CSI; and
``(4) a description of the potential for remote targeting
to decrease the number of personnel who are deployed at foreign
ports under CSI.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated $196,000,000 for each of the fiscal years 2007 through
2012 to carry out this section.
``SEC. 1806. INFORMATION SHARING RELATING TO SUPPLY CHAIN SECURITY
COOPERATION.
``(a) Purposes.--The purposes of this section are--
``(1) to establish continuing liaison and to provide for
supply chain security cooperation between Department and the
private sector; and
``(2) to provide for regular and timely interchange of
information between the private sector and the Department
concerning developments and security risks in the supply chain
environment.
``(b) Secure System.--The Secretary shall develop a secure
electronic data interchange system to collect from and share
appropriate risk information related to securing the supply chain with
the private sector entities determined appropriate by the Secretary.
``(c) Consultation.--In developing the system under subsection (b),
the Secretary shall consult with the Commercial Operations Advisory
Committee and a broad range of public and private sector entities
likely to utilize the system, including importers, exporters, carriers,
customs brokers, and freight forwarders, among other parties.
``(d) Procedures.--The Secretary shall establish uniform procedures
for the receipt, care, and storage of supply chain security information
that is voluntarily submitted to the Department through the system
developed under subsection (b).
``(e) Limitations.--The voluntary information collected through the
system developed under subsection (b) shall be used exclusively for
ensuring security and shall not be used for determining entry or for
any other commercial enforcement purpose. The voluntary information
submitted to the Department through the system developed under
subsection (b) shall not be construed to constitute compliance with any
requirement to submit such information to a Federal agency under any
other provision of law.
``(f) Participants.--The Secretary shall develop protocols for
determining appropriate private sector personnel who shall have access
to the system developed under subsection (b). Such personnel shall
include designated security officers within companies that are
determined to be low risk through participation in the Customs-Trade
Partnership Against Terrorism program established pursuant to subtitle
B of this title.
``(g) Confidentiality.--Notwithstanding any other provision of law,
information that is voluntarily submitted by the private sector to the
Department through the system developed under subsection (b)--
``(1) shall be exempt from disclosure under section 552 of
title 5, United States Code (commonly referred to as the
Freedom of Information Act);
``(2) shall not, without the written consent of the person
or entity submitting such information, be used directly by the
Department or a third party, in any civil action arising under
Federal or State law if such information is submitted in good
faith; and
``(3) shall not, without the written consent of the person
or entity submitting such information, be used or disclosed by
any officer or employee of the United States for purposes other
than the purposes of this section, except--
``(A) in furtherance of an investigation or other
prosecution of a criminal act; or
``(B) when disclosure of the information would be--
``(i) to either House of Congress, or to
the extent of matter within its jurisdiction,
any committee or subcommittee thereof, any
joint committee thereof or subcommittee of any
such joint committee; or
``(ii) to the Comptroller General, or any
authorized representative of the Comptroller
General, in the course of the performance of
the duties of the Comptroller General.
``(h) Independently Obtained Information.--Nothing in this section
shall be construed to limit or otherwise affect the ability of a
Federal, State, or local, government entity, under applicable law, to
obtain supply chain security information, including any information
lawfully and properly disclosed generally or broadly to the public and
to use such information in any manner permitted by law.
``(i) Penalties.--Whoever, being an officer or employee of the
United States or of any department or agency thereof, knowingly
publishes, divulges, discloses, or makes known in any manner or to any
extent not authorized by law, any supply chain security information
protected in this section from disclosure, shall be fined under title
18, United States Code, imprisoned not more than 1 year, or both, and
shall be removed from office or employment.
``(j) Authority to Issue Warnings.--The Secretary may provide
advisories, alerts, and warnings to relevant companies, targeted
sectors, other governmental entities, or the general public regarding
potential risks to the supply chain as appropriate. In issuing a
warning, the Secretary shall take appropriate actions to protect from
disclosure--
``(1) the source of any voluntarily submitted supply chain
security information that forms the basis for the warning; and
``(2) information that is proprietary, business sensitive,
relates specifically to the submitting person or entity, or is
otherwise not appropriately in the public domain.
``Subtitle B--Customs-Trade Partnership Against Terrorism (C-TPAT)
``SEC. 1811. ESTABLISHMENT.
``(a) Establishment.--The Secretary is authorized to establish a
voluntary program (to be known as the `Customs-Trade Partnership
Against Terrorism' or `C-TPAT') to strengthen and improve the overall
security of the international supply chain and United States border
security.
``(b) Minimum Security Requirements.--The Secretary shall review
the minimum security requirements of C-TPAT at least once every year
and update such requirements as necessary.
``SEC. 1812. ELIGIBLE ENTITIES.
``Importers, brokers, forwarders, air, sea, land carriers, contract
logistics providers, and other entities in the international supply
chain and intermodal transportation system are eligible to apply to
voluntarily enter into partnerships with the Department under C-TPAT.
``SEC. 1813. MINIMUM REQUIREMENTS.
``An applicant seeking to participate in C-TPAT shall--
``(1) demonstrate a history of moving commerce in the
international supply chain;
``(2) conduct an assessment of its supply chains based upon
security criteria established by the Secretary, including--
``(A) business partner requirements;
``(B) container security;
``(C) physical security and access controls;
``(D) personnel security;
``(E) procedural security;
``(F) security training and threat awareness; and
``(G) information technology security;
``(3) implement and maintain security measures and supply
chain security practices meeting security criteria; and
``(4) meet all other requirements established by the
Secretary.
``SEC. 1814. TIER ONE PARTICIPANTS.
``(a) Benefits.--The Secretary may offer limited benefits to C-TPAT
participants whose security measures and supply chain security
practices have been certified in accordance with the guidelines
established pursuant to subsection (b).
``(b) Guidelines.--The Secretary shall update guidelines for
certifying a C-TPAT participant's security measures and supply chain
security practices under this section.
``SEC. 1815. TIER TWO PARTICIPANTS.
``(a) In General.--Not later than one year after a C-TPAT
participant has been certified under section 1814, the Secretary shall
validate, directly or through third party entities certified in
accordance with section 1817, the security measures and supply chain
security practices of that participant. Such validation shall include
assessments at appropriate foreign locations utilized by the
participant as part of the supply chain.
``(b) Consequences for Failed Validation.--If a C-TPAT
participant's security measures and supply chain security practices
fail to meet the validation requirements under this section, the
Commissioner of U.S. Customs and Border Protection may--
``(1) deny the participant benefits under C-TPAT on a
temporary or permanent basis; or
``(2) suspend or expel the participant from C-TPAT.
``(c) Right of Appeal.--A C-TPAT participant described in
subsection (b) may file an appeal with the Secretary of the
Commissioner's decision under subsection (b)(1) to deny benefits under
C-TPAT or under subsection (b)(2) to suspend or expel the participant
from C-TPAT.
``(d) Benefits.--The Secretary shall extend benefits to each C-TPAT
participant that has been validated under this section, which may
include--
``(1) reduced examinations; and
``(2) priority processing for searches.
``SEC. 1816. TIER THREE PARTICIPANTS.
``(a) In General.--The Secretary shall establish a third tier of C-
TPAT that offers additional benefits to C-TPAT participants that
demonstrate a sustained commitment beyond the minimum criteria for
participation in C-TPAT.
``(b) Additional Criteria.--The Secretary shall designate criteria
for C-TPAT participants under this section that may include criteria to
ensure--
``(1) cargo is loaded on a vessel with a vessel security
plan approved under section 70103(c) of title 46, United States
Code, or on a vessel with a valid International Ship Security
Certificate as provided for under part 104 of title 33, Code of
Federal Regulations;
``(2) container security devices, policies, or practices
that exceed the standards and procedures established by the
Secretary are utilized; and
``(3) cargo complies with any other requirements determined
by the Secretary.
``(c) Benefits.--The Secretary, in consultation with the Commercial
Operations Advisory Committee and the National Maritime Security
Advisory Committee, may provide benefits to C-TPAT participants under
this section, which may include--
``(1) the expedited release of tier three cargo into
destination ports within the United States during all threat
levels designated by the Secretary;
``(2) reduced or streamlined bonding requirements that are
consistent with obligations under other applicable provisions
of law;
``(3) preference to vessels;
``(4) further reduced examinations;
``(5) priority processing for examinations;
``(6) further reduced scores in the Automated Targeting
System; and
``(7) streamlined billing of any customs duties or fees.
``(d) Definition.--In this section, the term `container security
device' means a mechanical or electronic device designed to, at a
minimum, positively identify containers and detect and record
unauthorized intrusion of containers. Such devices shall have false
alarm rates that have been demonstrated to be below one percent.
``SEC. 1817. CONSEQUENCES FOR LACK OF COMPLIANCE.
``(a) In General.--If a C-TPAT participant's security measures and
supply chain security practices fail to meet any of the requirements
under this subtitle, the Secretary may deny the participant benefits in
whole or in part under this subtitle.
``(b) False or Misleading Information.--If a C-TPAT participant
intentionally provides false or misleading information to the Secretary
or a third party entity during the validation process of the
participant under this subtitle, the Commissioner of U.S. Customs and
Border Protection shall suspend or expel the participant from C-TPAT
for a period of not less than five years.
``(c) Right of Appeal.--A C-TPAT participant described in
subsection (a) may file an appeal with the Secretary of the Secretary's
decision under subsection (a) to deny benefits under this subtitle. A
C-TPAT participant described in subsection (b) may file an appeal with
the Secretary of the Commissioner's decision under subsection (b) to
suspend or expel the participant from C-TPAT.
``SEC. 1818. VALIDATIONS BY THIRD PARTY ENTITIES.
``(a) In General.--In conducting the pilot program under subsection
(f), and if the Secretary determines to expand the use of third party
entities to conduct validations of C-TPAT participants upon completion
of the pilot program under subsection (f), the Secretary shall--
``(1) develop, document, and update, as necessary, minimum
standard operating procedures and requirements applicable to
such entities for the conduct of such validations; and
``(2) meet all requirements under subtitle G of the title
VIII of this Act to review and designate such minimum standard
operating procedures as a qualified anti-terrorism technology
for purposes of such subtitle.
``(b) Certification of Third Party Entities.--
``(1) Issuance of certificate of conformance.--In
accordance with section 863(d)(3) of this Act, the Secretary
shall issue a certificate of conformance to a third party
entity to conduct validations under this subtitle if the
entity--
``(A) demonstrates to the satisfaction of the
Secretary the ability to perform validations in
accordance with standard operating procedures and
requirements (or updates thereto) designated as a
qualified anti-terrorism technology by the Secretary
under subsection (a); and
``(B) agrees--
``(I) to perform validations in accordance
with such standard operating procedures and
requirements (or updates thereto); and
``(ii) to maintain liability insurance
coverage at policy limits and in accordance
with conditions to be established by the
Secretary pursuant to section 864 of this Act;
and
``(C) signs an agreement to protect all proprietary
information of C-TPAT participants with respect to
which the entity will conduct validations.
``(2) Litigation and risk management protections.--A third
party entity that maintains liability insurance coverage at
policy limits and in accordance with conditions to be
established by the Secretary pursuant to section 864 of this
Act and receives a certificate of conformance under paragraph
(1) shall receive all applicable litigation and risk management
protections under sections 863 and 864 of this Act.
``(3) Reciprocal waiver of claims.--A reciprocal waiver of
claims shall be deemed to have been entered into between a
third party entity that receives a certificate of conformance
under paragraph (1) and its contractors, subcontractors,
suppliers, vendors, customers, and contractors and
subcontractors of customers involved in the use or operation of
the validation services of the third party entity.
``(c) Information for Establishing Limits of Liability Insurance.--
A third party entity seeking a certificate of conformance under
subsection (b)(1) shall provide to the Secretary necessary information
for establishing the limits of liability insurance required to be
maintained by the entity under section 864(a) of this Act.
``(d) Additional Requirements.--The Secretary shall ensure that--
``(1) any third party entity under this section--
``(A) has no beneficial interest in or any direct
or indirect control over the C-TPAT participant that is
contracting for the validation services; and
``(B) has no other conflict of interest with
respect to the C-TPAT participant; and
``(2) the C-TPAT participant has entered into a contract
with the third party entity under which the C-TPAT participant
agrees to pay all costs associated with the validation.
``(e) Monitoring.--
``(1) In general.--The Secretary shall regularly monitor
and inspect the operations of a third party entity conducting
validations under this subtitle to ensure that the entity is
meeting the minimum standard operating procedures and
requirements for the validation of C-TPAT participants
established under subsection (a) and all other applicable
requirements for validation services under this subtitle.
``(2) Revocation.--If the Secretary finds that a third
party entity is not meeting the minimum standard operating
procedures and requirements, the Secretary shall--
``(A) revoke the entity's certificate of
conformance issued under subsection (b)(1); and
``(B) review any validations conducted by the
entity.
``(f) Pilot Program.--
``(1) In general.--The Secretary shall carry out a pilot
program to test the feasibility, costs, and benefits of
utilizing third party entities to conduct validations of C-TPAT
participants. In conducting the pilot program, the Secretary
shall comply with all applicable requirements of this section
with respect to eligibility of third party entities to conduct
validations of C-TPAT participants.
``(2) Report.--Not later than 30 days after the completion
of the pilot program conducted pursuant to paragraph (1), the
Secretary shall submit to the appropriate congressional
committees a report that contains--
``(A) the results of the pilot program; and
``(B) the determination of the Secretary whether or
not to expand the use of third party entities to
conduct validations of C-TPAT participants.
``SEC. 1819. REVALIDATION.
``The Secretary shall establish a process for revalidating C-TPAT
participants under this subtitle. Such revalidation shall occur not
less frequently than once during every 3-year period following the
initial validation.
``SEC. 1820. NON-CONTAINERIZED CARGO.
``The Secretary may consider the potential for participation in C-
TPAT by importers of non-containerized cargoes that otherwise meet the
requirements under this subtitle.
``SEC. 1821. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated $75,000,000 for each of
the fiscal years 2007 through 2012 to carry out this subtitle.
``Subtitle C--Miscellaneous Provisions
``SEC. 1831. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION EFFORTS IN
FURTHERANCE OF MARITIME AND CARGO SECURITY.
``(a) In General.--The Secretary shall--
``(1) direct research, development, test, and evaluation
efforts in furtherance of maritime and cargo security;
``(2) encourage the ingenuity of the private sector in
developing and testing technologies and process innovations in
furtherance of these objectives; and
``(3) evaluate such technologies.
``(b) Coordination.--The Secretary, in coordination with the
Undersecretary for Science and Technology, the Director of the Domestic
Nuclear Detection Office of the Department, and the heads of other
appropriate offices or entities of the Department, shall ensure that--
``(1) research, development, test, and evaluation efforts
funded by the Department in furtherance of maritime and cargo
security are coordinated to avoid duplication of efforts; and
``(2) the results of such efforts are shared throughout the
Department and other Federal, State, and local agencies, as
appropriate.
``SEC. 1832. GRANTS UNDER OPERATION SAFE COMMERCE.
``(a) In General.--The Secretary shall provide grants, as part of
Operation Safe Commerce, to--
``(1) integrate nonintrusive imaging inspection and nuclear
and radiological detection systems with automatic
identification methods for containers, vessels, and vehicles;
``(2) test physical access control protocols and
technologies to include continuous tracking devices that
provide real-time monitoring and reporting;
``(3) create a data sharing network capable of transmitting
data required by entities participating in the international
supply chain from every intermodal transfer point to the
National Targeting Center of the Department; and
``(4) otherwise further maritime and cargo security, as
determined by the Secretary.
``(b) Supply Chain Security for Special Container and
Noncontainerized Cargo.--In providing grants under subsection (a), the
Secretary shall establish demonstration projects that further the
security of the international supply chain, including refrigerated
containers, and noncontainerized cargo, including roll-on/roll-off,
break-bulk, liquid, and dry bulk cargo, through real-time, continuous
tracking technology for special or high-risk container cargo that poses
unusual potential for human or environmental harm.
``(c) Competitive Selection Process.--The Secretary shall select
recipients of grants under subsection (a) through a competitive process
on the basis of the following criteria:
``(1) The extent to which the applicant can demonstrate
that personnel, laboratory, and organizational resources will
be available to the applicant to carry out the activities
authorized under this section.
``(2) The applicant's capability to provide leadership in
making national and regional contributions to the solution of
maritime and cargo security issues.
``(3) The extent to which the applicant's programs,
projects, and activities under the grant will address highest
risk priorities as determined by the Secretary.
``(4) The extent to which the applicant has a strategic
plan for carrying out the programs, projects, and activities
under the grant.
``(5) Any other criteria the Secretary determines to be
appropriate.
``(d) Administrative Provisions.--
``(1) Prohibition on duplication of effort.--Before
providing any grant under subsection (a), the Secretary shall
coordinate with other Federal departments and agencies to
ensure the grant will not duplicate work already being carried
out with Federal funding.
``(2) Accounting, reporting, and review procedures.--The
Secretary shall establish accounting, reporting, and review
procedures to ensure that--
``(A) amounts made available under a grant provided
under subsection (a)--
``(i) are used for the purpose for which
such amounts were made available; and
``(ii) are properly accounted for; and
``(B) amounts not used for such purpose and amounts
not expended are recovered.
``(3) Recordkeeping.--The recipient of a grant under
subsection (a) shall keep all records related to expenditures
and obligations of amounts provided under the grant and make
such records available upon request to the Secretary for audit
and examination.
``(4) Review.--The Secretary shall annually review the
programs, projects, and activities carried out using amounts
made available under grants provided under subsection (a) to
ensure that obligations and expenditures of such amounts are
consistent with the purposes for which such amounts are made
available.
``(e) Annual Report.--Not later than March 1 of each year, the
Secretary shall submit to the appropriate congressional committees a
report detailing the results of Operation Safe Commerce.
``(f) Definition.--In this section, the term `Operation Safe
Commerce' means the research, development, test, and evaluation grant
program that brings together private sector shareholders, port
officials, and Federal, State, and local representatives to analyze
existing security procedures for cargo and develop new security
protocols that have the potential to increase the security of cargo
shipments by monitoring the movement and integrity of cargo through the
international supply chain.
``(g) Authorization of Appropriations.--
``(1) In general.--Subject to paragraph (2), there are
authorized to be appropriated $25,000,000 for each of fiscal
years 2007 through 2012 to carry out this section.
``(2) Effective date.--Paragraph (1) shall be effective
beginning on the date on which the Secretary submits to the
appropriate congressional committees a report on the
implementation and results of grants provided under Operation
Safe Commerce before the date of the enactment of the Security
and Accountability For Every Port Act.
``SEC. 1833. DEFINITIONS.
``In this title, the following definitions apply:
``(1) Automated targeting system.--The term `Automated
Targeting System' means the rules-based system incorporating
intelligence material and import transaction history,
established by U.S. Customs and Border Protection to target
high risk shipments of cargo.
``(2) Examination.--The term `examination' means a physical
inspection or the imaging and radiation screening of a
conveyance using non-intrusive inspection (NII) technology, for
the presence of contraband.
``(3) Inspection.--The term `inspection' means the
comprehensive process used by U.S. Customs and Border
Protection for assessing goods entering the United States to
appraise them for duty purposes, to detect the presence of
restricted or prohibited items, and to ensure compliance with
all applicable laws. This process may include screening,
conducting an examination, or conducting a search.
``(4) International supply chain.--The term `international
supply chain' means the end-to-end process for shipping goods
from a point of origin overseas to and from the United States.
``(5) Nuclear and radiological detection system.--The term
`nuclear and radiological detection system' means any
technology that is capable of detecting or identifying nuclear
and radiological material or explosive devices.
``(6) Screening.--The term `screening' means a visual or
automated review of information about goods, including manifest
or entry documentation accompanying a shipment being imported
into the United States, to determine or assess the threat of
such cargo.
``(7) Search.--The term `search' means an intrusive
examination in which a container is opened and its contents are
de-vanned and visually inspected for the presence of
misdeclared, restricted, or prohibited items.''.
(b) Clerical Amendment.--The table of contents in section 1(b) of
the Homeland Security Act of 2002 (116 Stat. 2135) is amended by adding
at the end the following:
``TITLE XVIII--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN
``Subtitle A--General Provisions
``Sec. 1801. Strategic plan to enhance the security of the
international supply chain.
``Sec. 1802. Transmission of additional data elements for improved high
risk targeting.
``Sec. 1803. Plan to improve the Automated Targeting System.
``Sec. 1804. Container standards and verification procedures.
``Sec. 1805. Container Security Initiative (CSI).
``Sec. 1806. Information sharing relating to supply chain security
cooperation.
``Subtitle B--Customs-Trade Partnership Against Terrorism (C-TPAT)
``Sec. 1811. Establishment.
``Sec. 1812. Eligible entities.
``Sec. 1813. Minimum requirements.
``Sec. 1814. Tier one participants.
``Sec. 1815. Tier two participants.
``Sec. 1816. Tier three participants.
``Sec. 1817. Consequences for lack of compliance.
``Sec. 1818. Validations by third party entities.
``Sec. 1819. Revalidation.
``Sec. 1820. Non-containerized cargo.
``Sec. 1821. Authorization of appropriations.
``Subtitle C--Miscellaneous Provisions
``Sec. 1831. Research, development, test, and evaluation efforts in
furtherance of maritime and cargo security.
``Sec. 1832. Grants under Operation Safe Commerce.
``Sec. 1833. Definitions.''.
(c) Effective Dates.--The Secretary of Homeland Security shall--
(1) submit to the appropriate congressional committees the
report required by section 1801(e)(1) of the Homeland Security
Act of 2002, as added by subsection (a), not later than 180
days after the date of enactment of this Act;
(2) promulgate regulations under section 1802(b) of the
Homeland Security Act of 2002, as added by subsection (a), not
later than one year after the date of the enactment of this
Act;
(3) develop and implement the plan to improve the Automated
Targeting System under section 1803(a) of the Homeland Security
Act of 2002, as added by subsection (a), not later than 180
days after the date of the enactment of this Act;
(4) develop the standards and verification procedures
described in section 1804(a)(1) of the Homeland Security Act of
2002, as added by subsection (a), not later than 180 days after
the date of the enactment of this Act;
(5) begin exercising authority to issue a ``do not load''
order to each port designated under CSI pursuant to section
1805(e) of the Homeland Security Act of 2002, as added by
subsection (a), not later than 180 days after the date of the
enactment of this Act;
(6) develop the secure electronic data interchange system
under section 1806(b) of the Homeland Security Act of 2002, as
added by subsection (a), not later than one year after the date
of the enactment of this Act;
(7) update guidelines for certifying a C-TPAT participant's
security measures and supply chain security practices under
section 1814(b) of the Homeland Security Act of 2002, as added
by subsection (a), not later than 180 days after the date of
the enactment of this Act;
(8) develop a schedule and update guidelines for validating
a C-TPAT participant's security measures and supply chain
security practices under section 1815 of the Homeland Security
Act of 2002, as added by subsection (a), not later than 180
days after the date of enactment of this Act;
(9) provide appropriate benefits described in subsection
(d) of section 1816 of the Homeland Security Act of 2002, as
added by subsection (a), to C-TPAT participants under section
1816 of such Act beginning not later than two years after the
date of the enactment of this Act; and
(10) carry out the pilot program described in section
1818(f) of the Homeland Security Act of 2002, as added by
subsection (a), beginning not later than one year after the
date of the enactment of this Act for a duration of not less
than a one-year period.
SEC. 202. NEXT GENERATION SUPPLY CHAIN SECURITY TECHNOLOGIES.
(a) Evaluation of Emerging Technologies.--While maintaining the
current layered, risk-based approach to screening, scanning, and
inspecting cargo at foreign ports bound for the United States in
accordance with existing statutory provisions, the Secretary of
Homeland Security shall evaluate the development of nuclear and
radiological detection systems and other inspection technologies for
use at foreign seaports to increase the volume of containers scanned
prior to loading on vessels bound for the United States. In carrying
out this section, the Secretary's evaluation shall include an analysis
of battery powered portable neutron and gamma-ray detection devices
that can be inexpensively mass produced.
(b) Emerging Technology.--Not later than one year after the date of
the enactment of this Act, the Secretary shall, having evaluated
emerging technologies under subsection (a), determine if more capable,
commercially available technology exists, and whether such technology--
(1) has a sufficiently low false alarm rate for use in the
supply chain;
(2) is capable of being deployed and operated at ports
overseas;
(3) is capable of integrating, where necessary, with
existing systems;
(4) does not significantly impact trade capacity and flow
of cargo at foreign or United States ports; and
(5) provides an automated notification of questionable or
high-risk cargo as a trigger for further inspection by
appropriately trained personnel.
(c) Contingent Implementation.--If the Secretary determines the
available technology meets the criteria outlined in subsection (b), the
Secretary, in cooperation with the Secretary of State, shall within 180
days of such determination, seek to secure the cooperation of foreign
governments to initiate and maximize the use of such technology at
foreign ports to scan all cargo possible.
(d) International Cooperation.--If the Secretary determines that a
proposed technology meets the requirements of subsection (b), but
cannot be implemented as a result of a foreign government's refusal to
cooperate in the phased deployment, the Secretary may refuse to accept
containerized cargo from that port.
(e) Report.--The Secretary shall submit to the appropriate
congressional committees on an annual basis a report on the evaluation
performed under subsections (a) and (b), the status of any
implementation initiated in accordance with subsection (c), and a
detailed assessment of the level of cooperation of foreign governments,
as well as any actions taken by the Secretary under subsection (d).
(f) Definition.--In this section, the term ``nuclear and
radiological detection system'' means any technology that is capable of
detecting or identifying nuclear and radiological material or explosive
devices.
SEC. 203. INTERNATIONAL TRADE DATA SYSTEM.
(a) Establishment.--The President shall establish and implement the
International Trade Data System, a single, uniform data system for the
electronic collection, dissemination, and sharing of import and export
information, to increase the efficiency of data submission and the
security of such data related to border security, trade, and public
health and safety of international cargoes.
(b) Private Sector Consultation.--The President shall consult with
private sector stakeholders in developing uniform data submission
requirements, procedures, and schedules under the system established
pursuant to subsection (a).
(c) Report.--Not later than 120 days after the date of the
enactment of this Act, the President shall transmit to the appropriate
congressional committees a report on the schedule for full
implementation of the system established pursuant to subsection (a).
(d) Rule of Construction.--Nothing in this section shall be
construed to prevent any Federal department or agency from collecting
import and export information under any other provision of law.
SEC. 204. FOREIGN PORT ASSESSMENTS.
Section 70108 of title 46, United States Code, is amended by adding
at the end the following:
``(d) Periodic Reassessment.--The Secretary, acting through the
Commandant of the Coast Guard, shall reassess the effectiveness of
antiterrorism measures maintained at ports as described under
subsection (a) and of procedures described in subsection (b) not less
than every 3 years.''.
SEC. 205. PILOT PROGRAM TO IMPROVE THE SECURITY OF EMPTY CONTAINERS.
(a) In General.--The Secretary of Homeland Security shall conduct a
one-year pilot program to evaluate and improve the security of empty
containers at United States seaports to ensure the safe and secure
delivery of cargo and to prevent potential acts of terrorism involving
such containers. The pilot program shall include the use of visual
searches of empty containers at United States seaports.
(b) Report.--Not later than 90 days after the completion of the
pilot program under paragraph (1), the Secretary shall prepare and
submit to the appropriate congressional committees a report that
contains--
(1) the results of pilot program; and
(2) the determination of the Secretary whether or not to
expand the pilot program.
SEC. 206. STUDY AND REPORT ON ADVANCED IMAGERY PILOT PROGRAMS.
(a) Study.--
(1) In general.--The Secretary of Homeland Security, in
consultation with the Commissioner of U.S. Customs and Border
Protection, shall conduct a study of the merits of current
container inspection pilot programs which include nuclear or
radiological detection, non-intrusive imagery, and density
scanning capabilities.
(2) Requirements.--The study required under paragraph (1)
shall include, at a minimum--
(A) an evaluation of the cost, personnel, and
infrastructure required to operate the pilot programs,
as well as the cost, personnel, and infrastructure
required to move the pilot programs into full-scale
deployment to screen all cargo imported from foreign
ports;
(B) an evaluation of the cost, personnel, and
infrastructure required by U.S. Customs and Border
Protection to validate the data generated from the
pilot programs;
(C) a summary of best practices and technological
advances of the pilot programs that could be integrated
into the Container Security Initiative and other
container security programs; and
(D) an assessment of the impact of technology or
processes utilized in the pilot programs on improving
cargo operations and security.
(b) Report.--Not later than 60 days after the date of the enactment
of this Act, the Secretary shall submit to the appropriate
congressional committees a report that contains--
(1) the results of the study required under subsection (a);
and
(2) recommendations to improve container security programs
within the Department of Homeland Security.
SEC. 207. REPORT ON NATIONAL TARGETING CENTER.
(a) Study.--The Secretary of Homeland Security shall conduct a
study to assess the activities of U.S. Customs and Border Protection's
National Targeting Center (NTC).
(b) Report.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall submit to the appropriate
congressional committees a report that contains--
(1) the results of the study conducted under subsection
(a); and
(2) recommendations to improve and strengthen the
activities of NTC.
SEC. 208. INTEGRATED CONTAINER INSPECTION SYSTEM PILOT PROJECT.
Not later than 180 days after the date of the enactment of this
Act, the Secretary of Homeland Security shall conduct a pilot project
at an overseas port similar to the Integrated Container Inspection
System being tested at the port in Hong Kong.
TITLE III--DIRECTORATE FOR POLICY, PLANNING, AND INTERNATIONAL AFFAIRS
SEC. 301. ESTABLISHMENT OF DIRECTORATE.
(a) Establishment.--The Homeland Security Act of 2002 (6 U.S.C. 101
et seq.) is amended--
(1) by redesignating title VI as title XIX, and moving such
title so as to appear after title XVIII, as added by section
201;
(2) by striking the heading for such title and inserting
the following:
``TITLE XIX--MISCELLANEOUS PROVISIONS''.
(3) by redesignating section 601 as section 1901; and
(4) by inserting after title V the following new title:
``TITLE VI--POLICY, PLANNING, AND INTERNATIONAL AFFAIRS
``SEC. 601. DIRECTORATE FOR POLICY, PLANNING, AND INTERNATIONAL
AFFAIRS.
``(a) Establishment.--There shall be in the Department a
Directorate for Policy, Planning, and International Affairs.
``(b) Under Secretary for Policy.--
``(1) In general.--The head of the Directorate shall be the
Under Secretary for Policy, who shall be appointed by the
President.
``(2) Qualifications.--No individual shall be appointed
Under Secretary for Policy under paragraph (1) unless the
individual has, by education and experience, demonstrated
knowledge, ability, and skill in the fields of policy and
strategic planning.
``(c) Responsibilities of Under Secretary.--
``(1) Policy responsibilities.--Subject to the direction
and control of the Secretary, the policy responsibilities of
the Under Secretary for Policy shall be as follows:
``(A) To serve as the principal policy advisor to
the Secretary.
``(B) To provide overall direction and supervision
of policy development for the programs, offices, and
activities of the Department.
``(C) To establish and implement a formal
policymaking process for the Department.
``(D) To analyze, evaluate, and review the
completed, ongoing, and proposed programs of the
Department to ensure they are compatible with the
statutory and regulatory responsibilities of the
Department and with the Secretary's priorities,
strategic plans, and policies.
``(E) To ensure that the budget of the Department
(including the development of future year budgets and
interaction with the Office of Management and Budget
and with Congress) is compatible with the statutory and
regulatory responsibilities of the Department and with
the Secretary's priorities, strategic plans, and
policies.
``(F) To represent the Department in any
development of policy that requires the Department to
consult with another Federal agency, the Office of the
President, a foreign government, or any other
governmental or private sector entity.
``(G) To supervise and oversee policy development
undertaken by the component agencies and offices of the
Department.
``(H) To provide for the coordination and
maintenance of the trade and customs revenue functions
of the Department.
``(2) Strategic planning responsibilities.--Subject to the
direction and control of the Secretary, the strategic planning
responsibilities of the Under Secretary for Policy shall be as
follows:
``(A) To conduct long-range, strategic planning for
the Department.
``(B) To prepare national and Department
strategies, as appropriate.
``(C) To conduct net assessments of issues facing
the Department.
``(3) International responsibilities.--Subject to the
direction and control of the Secretary, the international
responsibilities of the Under Secretary for Policy shall be as
follows:
``(A) To promote the exchange of information and
the sharing of best practices and technology relating
to homeland security with nations friendly to the
United States, including--
``(i) the exchange of information on
research and development on homeland security
technologies;
``(ii) joint training exercises of first
responders in coordination with the Assistant
Secretary for Grants and Training; and
``(iii) exchanging expertise and
information on terrorism prevention, response,
and crisis management.
``(B) To identify any homeland security-related
area in which the United States and other nations and
appropriate international organizations could
collaborate to improve capabilities and to encourage
the exchange of information or sharing of best
practices and technology relating to that area.
``(C) To plan and participate in international
conferences, exchange programs (including the exchange
of scientists, engineers, and other experts), and other
training activities with friendly nations.
``(D) To manage international activities within the
Department in coordination with other Federal officials
with responsibility for counterterrorism matters.
``(E) To oversee the activities of Department
personnel operating in other countries or traveling to
other countries.
``(F) To represent the Department in international
negotiations, working groups, and standards-setting
bodies.
``(4) Private sector.--
``(A) To create and foster strategic communications
with the private sector to enhance the primary mission
of the Department to protect the United States.
``(B) To advise the Secretary on the impact on the
private sector of the policies, regulations, processes,
and actions of the Department.
``(C) To create and manage private sector advisory
councils composed of representatives of industries and
associations designated by the Secretary--
``(i) to advise the Secretary on private
sector products, applications, and solutions as
they relate to homeland security challenges;
and
``(ii) to advise the Secretary on homeland
security policies, regulations, processes, and
actions that affect the participating
industries and associations.
``(D) To promote existing public-private
partnerships and develop new public-private
partnerships to provide for collaboration and mutual
support to address homeland security challenges.
``(E) To identify private sector resources and
capabilities that could be effective in supplementing
functions of the Department and State and local
governments to prevent or respond to acts of terrorism.
``(F) To coordinate among the Department's
operating entities and with the Assistant Secretary for
Trade Development of the Department of Commerce on
issues related to the travel and tourism industries.
``(5) Trade and customs revenue functions.--The Under
Secretary for Policy shall--
``(A) ensure that the trade and customs revenue
functions of the Department are coordinated within the
Department and with other Federal departments and
agencies, and that the impact on legitimate trade is
taken into account in any action impacting these
functions; and
``(B) monitor and report to Congress on the
Department's mandate to ensure that the trade and
customs revenue functions of the Department are not
diminished, including how spending, operations, and
personnel related to these functions have kept pace
with the level of trade entering the United States.
``SEC. 602. OFFICE OF INTERNATIONAL AFFAIRS.
``(a) Establishment.--There is established within the Directorate
of Policy, Planning, and International Affairs an Office of
International Affairs. The Office shall be headed by an Assistant
Secretary, who shall be appointed by the Secretary.
``(b) Duties of the Assistant Secretary.--The Assistant Secretary
shall have the following duties:
``(1) To promote information and education exchange with
nations friendly to the United States in order to promote
sharing of best practices and technologies relating to homeland
security. Such exchange shall include the following:
``(A) Exchange of information on research and
development on homeland security technologies.
``(B) Joint training exercises of first responders.
``(C) Exchange of expertise on terrorism
prevention, response, and crisis management.
``(2) To identify areas for homeland security information
and training exchange where the United States has a
demonstrated weakness and another friendly nation or nations
have a demonstrated expertise.
``(3) To plan and undertake international conferences,
exchange programs, and training activities.
``(4) To manage international activities within the
Department in coordination with other Federal officials with
responsibility for counter-terrorism matters.
``SEC. 603. OTHER OFFICES AND OFFICIALS.
``(a) In General.--The Under Secretary for Policy shall establish
the following offices in the Directorate for Policy, Planning, and
International Affairs:
``(1) The Office of Policy, which shall be administered by
an Assistant Secretary for Policy.
``(2) The Office of Strategic Plans, which shall be
administered by an Assistant Secretary for Strategic Plans and
which shall include--
``(A) a Secure Border Initiative Program Office;
and
``(B) a Screening Coordination and Operations
Office.
``(3) The Office of the Private Sector, which shall be
administered by an Assistant Secretary for the Private Sector.
``(4) The Victim Assistance Officer.
``(5) The Tribal Security Officer.
``(6) Such other offices as considered necessary by the
Under Secretary for Policy.
``(b) Director of Cargo Security Policy.--
``(1) In general.--There shall be in the Directorate for
Policy, Planning, and International Affairs a Director of Cargo
Security Policy (hereinafter in this subsection referred to as
the `Director'), who shall be subject to the direction and
control of the Under Secretary for Policy.
``(2) Responsibilities.--The Director shall--
``(A) advise the Assistant Secretary for Policy
regarding all aspects of Department programs relating
to cargo security;
``(B) develop Department-wide policies regarding
cargo security; and
``(C) coordinate the cargo security policies and
programs of the Department with other Federal
departments and agencies, including by working with
officials of the Department of Energy and the
Department of State, as appropriate, in negotiating
international agreements relating to cargo security.
``(c) Director of Trade Policy.--
``(1) In general.--There shall be in the Directorate for
Policy, Planning, and International Affairs a Director of Trade
Policy (hereinafter in this subsection referred to as the
`Director'), who shall be subject to the direction and control
of the Under Secretary for Policy.
``(2) Responsibilities.--The Director shall--
``(A) advise the Assistant Secretary for Policy
regarding all aspects of Department programs relating
to the trade and customs revenue functions of the
Department;
``(B) develop Department-wide policies regarding
trade and customs revenue functions and trade
facilitation; and
``(C) coordinate the trade and customs revenue-
related programs of the Department with other Federal
departments and agencies.
``SEC. 604. CONSULTATION ON TRADE AND CUSTOMS REVENUE FUNCTIONS.
``(a) In General.--The Secretary and the Under Secretary for Policy
shall consult with representatives of the business community involved
in international trade, including seeking the advice and
recommendations of the Commercial Operations Advisory Committee (COAC),
on Department policies and actions that have a significant impact on
international trade and customs revenue functions.
``(b) COAC Consultation and Notification.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall seek the advice and recommendations of COAC on any
proposed Department policies, initiatives, actions, or
organizational reforms that will have a major impact on trade
and customs revenue functions not later than 45 days prior to
the finalization of the policies, initiatives, actions, or
organizational reforms.
``(2) Exception.--If the Secretary determines that it is
important to the national security interest of the United
States to finalize any proposed Department policies,
initiatives, actions, or organizational reforms prior to the
provision of advice and recommendations described in paragraph
(1), the Secretary shall--
``(A) seek the advice and recommendations of COAC
on the policies, initiatives, actions, or
organizational reforms not later than 30 days after the
date on which the policies, initiatives, actions, or
organizational reforms are finalized; and
``(B) to the extent appropriate, modify the
policies, initiatives, actions, or organizational
reforms based upon the advice and recommendations of
COAC.
``(c) Congressional Consultation and Notification.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall consult with and provide any recommendations of COAC
received under subsection (b) to the appropriate congressional
committees not later than 30 days prior to the finalization of
any Department policies, initiatives, actions or organizational
reforms that will have a major impact on trade and customs
revenue functions.
``(2) Exception.--If the Secretary determines that it is
important to the national security interest of the United
States to finalize any Department policies, initiatives,
actions, or organizational reforms prior to the consultation
described in paragraph (1), the Secretary shall--
``(A) consult with and provide any recommendations
of COAC received under subsection (b) to the
appropriate congressional committees not later than 45
days after the date on which the policies, initiative,
actions, or organizational reforms are finalized; and
``(B) to the extent appropriate, modify the
policies, initiatives, actions, or organizational
reforms based upon the consultations with the
appropriate congressional committees.''.
(b) Conforming Amendments.--Section 879 of the Homeland Security
Act of 2002 (6 U.S.C. 459) is repealed.
(c) Clerical Amendments.--The table of contents in section 1(b) of
such Act is amended--
(1) by striking the item relating to section 879;
(2) by striking the items relating to title VI and
inserting the following:
``TITLE VI--POLICY, PLANNING, AND INTERNATIONAL AFFAIRS
``Sec. 601. Directorate for Policy, Planning, and International
Affairs.
``Sec. 602. Office of International Affairs.
``Sec. 603. Other offices and officials.'';
and
(3) by inserting after the items relating to title XVIII
the following:
``TITLE XIX--MISCELLANEOUS PROVISIONS
``Sec. 1901. Treatment of charitable trusts for members of the armed
forces of the United States and other
governmental organizations.''.
SEC. 302. STUDY AND REPORT ON CUSTOMS REVENUE FUNCTIONS.
(a) Study.--
(1) In general.--The Comptroller General shall conduct a
study evaluating the extent to which the Department of Homeland
Security is meeting its obligations under section 412(b) of the
Homeland Security Act of 2002 (6 U.S.C. 212(b)) with respect to
the maintenance of customs revenue functions.
(2) Analysis.--The study shall include an analysis of--
(A) the extent to which the customs revenue
functions carried out by the former U.S. Customs
Service have been consolidated with other functions of
the Department (including the assignment of non-customs
revenue functions to personnel responsible for customs
revenue collection), discontinued, or diminished
following the transfer of the U.S. Customs Service to
the Department;
(B) the extent to which staffing levels or
resources attributable to customs revenue functions
have decreased since the transfer of the U.S. Customs
Service to the Department; and
(C) the extent to which the management structure
created by the Department ensures effective trade
facilitation and customs revenue collection.
(b) Report.--Not later than 180 days after the date of the
enactment of this Act, the Comptroller General shall submit to the
appropriate congressional committees a report on the results of study
conducted under subsection (a).
(c) Definition.--In this section, the term ``customs revenue
functions'' means the functions described in section 412(b)(2) of the
Homeland Security Act of 2002 (6 U.S.C. 212(b)(2)).
TITLE IV--OFFICE OF DOMESTIC NUCLEAR DETECTION
SEC. 401. ESTABLISHMENT OF OFFICE.
(a) Establishment.--The Homeland Security Act of 2002 (6 U.S.C. 101
et seq.) is amended by adding at the end the following new title:
``TITLE XX--OFFICE OF DOMESTIC NUCLEAR DETECTION
``SEC. 2001. DOMESTIC NUCLEAR DETECTION OFFICE.
``(a) In General.--There shall be in the Department of Homeland
Security a Domestic Nuclear Detection Office.
``(b) Purpose.--The purpose of the Office shall be to protect
against the unauthorized importation, possession, storage,
transportation, development, or use of a nuclear explosive device,
fissile material, or radiological material against the United States.
``(c) Director.--The Office shall be headed by a Director of
Domestic Nuclear Detection, who shall be appointed by the President
from among individuals nominated by the Secretary.
``(d) Limitation.--This title shall not be construed to affect the
performance, by directorates and agencies of the Department other than
the Office, of functions that are not related to detection and
prevention of nuclear and radiological terrorism.
``SEC. 2002. FUNCTIONS OF DIRECTOR OF THE DOMESTIC NUCLEAR DETECTION
OFFICE, GENERALLY.
``(a) In General.--The Secretary shall vest in the Director the
primary responsibility in the Department for--
``(1) administering all nuclear and radiological detection
and prevention functions and assets of the Department,
including those functions vested in the Department before the
enactment of the Security and Accountability For Every Port
Act; and
``(2) for coordinating such administration with nuclear and
radiological detection and prevention activities of other
Federal departments and agencies.
``(b) Transfer of Functions.--The Secretary shall transfer to the
Director the authority to administer, or supervise the administration
of, all functions, personnel, assets, and liabilities of all Department
programs and projects relating to nuclear and radiological detection
research, development, testing, and evaluation, and nuclear and
radiological detection system acquisition and deployment, including
with respect to functions and assets transferred by section 303(1)(B),
(C), and (E) and functions, assets, and personnel transferred pursuant
to section 2010(c).
``SEC. 2003. GLOBAL NUCLEAR DETECTION ARCHITECTURE.
``(a) In General.--The Director shall coordinate the Federal
Government's implementation of a global nuclear detection architecture.
``(b) Functions of Director.--The Director shall, under subsection
(a)--
``(1) design a strategy that will guide deployment of the
global nuclear detection architecture;
``(2) implement Department components of the strategy in
the United States; and
``(3) coordinate Department and Federal interagency efforts
to deploy the elements of the global nuclear detection
architecture outside the United States.
``(c) Relationship to Other Departments and Agencies.--The
authority of the Director under this section shall not affect an
authority or responsibility of any other department or agency of the
Federal Government with respect to the deployment of nuclear and
radiological detection systems under any program administered by that
department or agency.
``SEC. 2004. RESEARCH AND DEVELOPMENT.
``(a) In General.--The Director shall carry out a research and
development program to achieve transformational and evolutionary
improvements in detection capabilities for shielded and unshielded
nuclear explosive devices and radiological dispersion devices.
``(b) High-Risk Projects.--The program shall include funding for
transformational research and development projects that may have a high
risk of failure but have the potential to provide significant benefits.
``(c) Long-Term Projects.--In order to reflect a long-term
commitment to the development of more effective detection technologies,
the program shall include the provision of funding for projects having
a duration of more than 3 years, as appropriate.
``(d) Coordination With Other Federal Programs.--The Director shall
coordinate implementation of the program with other Federal agencies
performing similar research and development in order to accelerate the
development of effective technologies, promote technology sharing, and
to avoid duplication, including through the use of the interagency
coordination council established under section 2013.
``SEC. 2005. SYSTEM ASSESSMENTS.
``(a) In General.--The Director shall carry out a program to test
and evaluate technology for detecting nuclear explosive devices and
fissile or radiological material.
``(b) Performance Metrics.--The Director shall establish
performance metrics for evaluating the effectiveness of individual
detectors and detection systems in detecting nuclear explosive devices
or fissile or radiological material--
``(1) under realistic operational and environmental
conditions; and
``(2) against realistic adversary tactics and
countermeasures.
``(c) Provision of Testing Services.--
``(1) In general.--The Director may, under the program,
make available testing services to developers of detection
technologies. The results of the tests performed with services
made available under this subsection shall be confidential and
may not be disclosed to individuals or entities outside of the
Federal Government without the consent of the developer for
whom the tests are performed.
``(2) Fees.--The Director may charge fees, as appropriate,
for performance of services under this subsection.
``(d) System Assessments.--
``(1) In general.--The Director shall periodically perform
system-wide assessments of the global nuclear detection
architecture to identify vulnerabilities and to gauge overall
system performance against nuclear and radiological threats.
``(2) Included activities.--The assessments shall include--
``(A) red teaming activities to identify
vulnerabilities and possible modes of attack and
concealment methods; and
``(B) net assessments to determine architecture
performance against adversary tactics and concealment
methods.
``(3) Use.--The Director shall use the assessments to guide
deployment of the global nuclear detection architecture and the
research and development activities of the Office.
``SEC. 2006. TECHNOLOGY ACQUISITION, DEPLOYMENT, SUPPORT, AND TRAINING.
``(a) Acquisition Strategy.--
``(1) In general.--The Director shall develop and, subject
to the availability of appropriations, execute a strategy for
the acquisition and deployment of detection systems in order to
implement the Department components of the global nuclear
detection architecture developed under section 2003.
``(2) Use of available contracting procedures.--The
Director shall make use of all contracting procedures available
to the Secretary to implement the acquisition strategy.
``(3) Determination of qualified anti-terrorism
technology.--The Director shall make recommendations based on
the criteria included in section 862(b) as to whether the
detection systems acquired pursuant to this subsection shall be
designated by the Secretary as anti-terrorism technologies that
qualify for protection under the system of risk management set
forth in subtitle G of title VIII. The Undersecretary for
Science and Technology shall consider the Director's
recommendations and expedite the process of determining whether
such detection systems shall be designated as anti-terrorism
technologies that qualify for such protection.
``(b) Deployment.--The Director shall deploy detection systems for
use by Department operational units and other end-users in implementing
the global nuclear detection architecture.
``(c) Operational Support and Protocols.--
``(1) Operational support.--The Director shall provide
operational support for all systems acquired to implement the
acquisition strategy developed under subsection (a).
``(2) Operational protocols.--The Director shall develop
operational protocols for detection technology acquired and
deployed to implement the acquisition strategy, including
procedures for alarm resolution and notification of appropriate
response agencies in the event that illicit nuclear,
radioactive, or fissile materials are detected by such a
product or service.
``(3) Technical reachback.--The Director will ensure that
the expertise necessary to accurately interpret detection data
is made available in a timely manner for all technology
deployed to implement the global nuclear detection
architecture.
``(d) Training.--The Director shall develop and distribute training
materials and provide training to all end-users of technology acquired
by the Director under the acquisition strategy.
``(e) Solicitation of End-User Input.--In developing requirements
for the research and development program of section 2004 and
requirements for the acquisition of detection systems to implement the
strategy in subsection (a), the Director shall solicit input from end-
users of such systems.
``(f) State and Local Support.--Upon request, the Director shall
provide guidance regarding radiation detection technology acquisitions
to be made by State, territorial, tribal and local governments and
emergency response providers.
``SEC. 2007. SITUATIONAL AWARENESS.
``(a) Detection Information.--The Director--
``(1) shall continuously monitor detection information
received from foreign and domestic detection systems to
maintain for the Department a situational awareness of all
nuclear threats;
``(2) shall gather and archive--
``(A) detection data measurements taken of benign
activities in the normal flows of commerce; and
``(B) alarm data, including false alarms and
nuisance alarms.
``(b) Information Sharing.--The Director shall coordinate with
other governmental agencies to ensure that the detection of
unauthorized nuclear explosive devices, fissile material, or
radiological material is promptly reported to all appropriate Federal
response agencies including the Attorney General, the Director of the
Federal Bureau of Investigation, the Secretary of Defense, and the
Secretary of Energy.
``(c) Incident Resolution.--The Director shall assess nuclear
threats communicated by Federal, State, tribal, or local officials and
provide adequate technical reachback capability for swift and effective
incident resolution.
``(d) Security.--The Director shall--
``(1) develop and implement security standards and
protocols for the control and protection of all classified or
sensitive information in possession of the Office; and
``(2) ensure that relevant personnel of the Office have the
required security clearances to properly handle such
information.
``SEC. 2008. FORENSIC ANALYSIS.
``The Director shall perform all research, development, and
acquisition activities of the Department pertaining to forensic
analysis and attribution of nuclear and radiological attacks.
``SEC. 2009. THREAT INFORMATION.
``(a) Threat Assessments.--The Director shall utilize classified
and unclassified nuclear and radiological threat assessments in
designing the global nuclear detection architecture under section 2003,
prioritizing detection system deployments, and testing and optimizing
system performance of that architecture, including assessments of--
``(1) smuggling routes;
``(2) locations of relevant nuclear and radiological
material throughout the world;
``(3) relevant terrorist tradecraft and concealment
methods;
``(4) relevant nuclear and radiological threat objects in
terms of possible detection signatures.
``(b) Access to Information.--The Secretary shall provide the
Director access to all information relating to nuclear and radiological
threats, including reports, assessments, analyses, and unevaluated
intelligence, that is necessary to successfully design, deploy, and
support the operation of an effective global detection architecture
under section 1903.
``(c) Analytical Support.--The Director shall request that the
Secretary provide to the Director, pursuant to section 201(d)(18), the
requisite intelligence and information analysis support necessary to
effectively discharge the Director's responsibilities.
``(d) Analytical Expertise.--For the purposes of performing any of
the assessments required under subsection (a), the Director, subject to
the availability of appropriations, may hire professional personnel who
are analysts with experience in performing nuclear and radiological
threat assessments.
``(e) Collection Requests.--The Director shall recommend to the
Secretary consultation that should occur pursuant to section 201(d)(10)
regarding intelligence collection to design, deploy, and support the
operation of the global detection architecture under section 2003.
``SEC. 2010. ADMINISTRATIVE AUTHORITIES.
``(a) Hiring.--In hiring personnel for the Office, the Secretary
shall have hiring and management authorities described in section 1101
of the Strom Thurmond National Defense Authorization Act for Fiscal
Year 1999 (5 U.S.C. 3104 note; Public Law 105-261). The term of
appointments for employees under subsection (c)(1) of that section may
not exceed 5 years before granting any extension under subsection
(c)(2) of that section.
``(b) Detail of Personnel.--In order to assist the Director in
discharging the Director's responsibilities, personnel of other Federal
agencies may be detailed to the Office for the performance of analytic
functions and related duties.
``(c) Transfer of Science and Technology Functions, Personnel, and
Assets.--
``(1) Transfer required.--Except as provided in paragraph
(2), the Secretary shall transfer to the Director the
functions, assets, and personnel of the Department relating to
radiological and nuclear countermeasures, including forensics
of contaminated evidence and attack attribution.
``(2) Exceptions.--The Secretary shall not transfer under
paragraph (1) functions, assets, and personnel relating to
consequence management and recovery.
``(3) Elimination of duplication of effort.--The Secretary
shall ensure that to the extent there are complementary
functions vested in the Directorate of Science and Technology
and the Office with respect to radiological and nuclear
countermeasures, the Under Secretary for Science and Technology
and the Director coordinate the programs they administer to
eliminate duplication and increase integration opportunities,
particularly with respect to technology development and test
and evaluation.
``SEC. 2011. REPORT REQUIREMENT.
``The Director shall submit to the appropriate congressional
committees an annual report on the following:
``(1) The global detection strategy developed under section
2003.
``(2) The status of implementation of such architecture.
``(3) The schedule for future detection system deployments
under such architecture.
``(4) The research and development program of the Office.
``(5) A summary of actions taken by the Office during the
reporting period to counter nuclear and radiological threats.
``SEC. 2012. ADVISORY COUNCIL ON NUCLEAR DETECTION.
``(a) Establishment.--Pursuant to section 871 of this Act, the
Secretary shall establish within the Office an Advisory Council on
Nuclear Detection, which shall report to the Director (in this section
referred to as the `Advisory Council').
``(b) Functions.--The Advisory Council shall, at the request of the
Director--
``(1) advise the Director on recommendations for the global
nuclear detection architecture developed under section 2003(a);
``(2) identify research areas for development of next-
generation and transformational nuclear and radiological
detection technologies; and
``(3) and have such additional responsibilities as the
Director may assign in furtherance of the Department's homeland
security mission with respect to enhancing domestic and
international nuclear and radiological detection capabilities.
``(c) Membership.--The Advisory Council shall consist of 5 members
appointed by the Director, who shall--
``(1) be individuals who have an eminent knowledge and
technical expertise related to nuclear and radiological
detection research and development and radiation detection;
``(2) be selected solely on the basis of their established
record of distinguished service; and
``(3) not be employees of the Federal Government, other
than employees of National Laboratories.
``(d) Conflict of Interest Rules.--The Advisory Council shall
establish rules for determining when one of its members has a conflict
of interest in a matter being considered by the Advisory Council, and
the appropriate course of action to address such conflicts of interest.
``SEC. 2013. INTERAGENCY COORDINATION COUNCIL.
``The President--
``(1) shall establish an interagency coordination council
to facilitate interagency cooperation for purposes of
implementing this title;
``(2) shall appoint the Secretary to chair the interagency
coordination council; and
``(3) may appoint the Attorney General, the Secretary of
Energy, the Secretary of State, the Secretary of Defense, and
the heads of other appropriate Federal agencies to designate
members to serve on such council.
``SEC. 2014. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this title--
``(1) $536,000,000 for fiscal year 2007; and
``(2) such sums as may be necessary for each subsequent
fiscal year.
``SEC. 2015. DEFINITIONS.
``In this title:
``(1) The term `Director' means the Director of the
Domestic Nuclear Detection Office.
``(2) The term `fissile materials' means materials capable
of sustaining a nuclear chain reaction.
``(3) The term `global nuclear detection architecture'
means a multi-layered system of detectors deployed
internationally and domestically to detect and interdict
nuclear and radiological materials intended for illicit use.
``(4) The term `nuclear and radiological detection system'
means any technology that is capable of detecting or
identifying nuclear and radiological material or explosive
devices.
``(5) The term `Office' means the Domestic Nuclear
Detection Office.
``(6) The term `radiological material' means material that
emits nuclear radiation.
``(7) The term `nuclear explosive device' means an
explosive device capable of producing a nuclear yield.
``(8) The term `technical reachback' means technical expert
support provided to operational end users for data
interpretation and alarm resolution.
``(9) The term `transformational' means that, if
successful, will produce dramatic technological improvements
over existing capabilities in the areas of performance, cost,
or ease of use.''.
(b) Conforming Amendments.--
(1) Section 103(d) of the Homeland Security Act of 2002 (6
U.S.C. 113(d)) is amended by adding at the end the following:
``(5) A Director of the Domestic Nuclear Detection
Office.''.
(2) Section 302 of such Act (6 U.S.C. 182) is amended--
(A) in paragraph (2) by striking ``radiological,
nuclear,''; and
(B) in paragraph (5)(A) by striking ``radiological,
nuclear,''.
(3) Section 305 of such Act (6 U.S.C. 185) is amended by
inserting ``and the Director of the Domestic Nuclear Detection
Office'' after ``Technology''.
(4) Section 308 of such Act (6 U.S.C. 188) is amended in
each of subsections (a) and (b)(1) by inserting ``and the
Director of the Domestic Nuclear Detection Office'' after
``Technology''.
(c) Clerical Amendment.--The table of contents in section 1(b) of
the Homeland Security Act of 2002 (116 Stat. 2135) is amended by adding
at the end the following:
``TITLE XX--OFFICE OF DOMESTIC NUCLEAR DETECTION
``Sec. 2001. Domestic Nuclear Detection Office.
``Sec. 2002. Functions of Director of the Domestic Nuclear Detection
Office, generally.
``Sec. 2003. Global nuclear detection architecture.
``Sec. 2004. Research and development.
``Sec. 2005. System assessments.
``Sec. 2006. Technology acquisition, deployment, support, and training.
``Sec. 2007. Situational awareness.
``Sec. 2008. Forensic analysis.
``Sec. 2009. Threat information.
``Sec. 2010. Administrative authorities.
``Sec. 2011. Report requirement.
``Sec. 2012. Advisory Council on Nuclear Detection.
``Sec. 2013. Interagency coordination council.
``Sec. 2014. Authorization of appropriations.
``Sec. 2015. Definitions.''.
SEC. 402. NUCLEAR AND RADIOLOGICAL DETECTION SYSTEMS.
(a) Deployment.--Not later than September 30, 2007, the Secretary
of Homeland Security shall deploy nuclear and radiological detection
systems at 22 United States seaports. To the extent feasible, the
Secretary shall deploy the next-generation radiation portal monitors
tested in the pilot program under subsection (d) at such United States
seaports.
(b) Strategy.--Not later than 90 days after the date of the
enactment of this Act, the Secretary, acting through the Director of
the Domestic Nuclear Detection Office of the Department, shall submit
to the appropriate congressional committees a strategy for the
deployment of nuclear and radiological detection systems at all
remaining United States seaports.
(c) Contents.--The strategy submitted under subsection (b) shall
include--
(1) a risk-based prioritization of United States seaports
at which nuclear and radiological detection systems will
deployed;
(2) a proposed timeline of when nuclear and radiological
detection systems will be deployed at each of the seaports
identified under paragraph (1);
(3) the type of systems to be used at each of the seaports
identified under paragraph (1);
(4) standard operating procedures for examining containers
with such systems;
(5) the Department policy for using nuclear and
radiological detection systems;
(6) a classified annex that details plans for covert
testing; and
(7) a classified annex that outlines the risk-based
prioritization of seaports used under paragraph (1).
(d) Safety Plan.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall submit to the appropriate
congressional committees a plan that--
(1) details the health and safety impacts of nuclear and
radiological detection systems; and
(2) describes the policy of U.S. Customs and Border
Protection for using nuclear and radiological detection
systems.
(e) Pilot Program.--
(1) In general.--Not later than January 1, 2007, the
Secretary, acting through the Director of the Domestic Nuclear
Detection Office of the Department, shall initiate a pilot
program to deploy and test the operational performance of next-
generation radiation portal monitors at one or more United
States seaports with a high-volume of containerized cargo.
(2) Report.--Not later than March 31, 2007, the Secretary
shall submit to the appropriate congressional committees a
report that contains--
(A) a description of the next-generation radiation
portal monitors deployed at United States seaports
under the pilot program;
(B) a description of the operational
characteristics of the pilot program at selected United
States seaports; and
(C) an evaluation of the operational performance of
the next-generation radiation portal monitors,
including nuisance alarm rates, and a description of
the standards used in such evaluation.
(f) Deployment of Next-Generation Radiation Portal Monitors.--
(1) In general.--If the Secretary, acting through the
Director of the Domestic Nuclear Detection Office of the
Department, determines that the operational performance of the
next-generation radiation portal monitors under the pilot
program carried out under subsection (e) has met the standards
described subsection (e)(2)(C), the Secretary shall deploy
next-generation radiation portal monitors, in fixed or other
configurations, at all United States seaports with a high-
volume of containerized cargo to improve cargo screening
capabilities at such seaports not later than September 30,
2007.
(2) Congressional notification.--If any deployment of next-
generation radiation portal monitors is deemed by the Secretary
to be operationally infeasible or would result in ineffective,
inefficient, or otherwise wasteful use of resources, the
Secretary shall notify the appropriate congressional committees
and recommend alternative actions.
(g) Enhancing Overseas Detection Capabilities.--The Secretary,
acting through the Director of the Domestic Nuclear Detection Office of
the Department, shall work with appropriate Federal departments and
agencies to coordinate the installation of nuclear and radiological
detection systems at foreign seaports.
(h) Definitions.--In this section:
(1) Next-generation radiation portal monitors.--The term
``next-generation radiation portal monitors'' means non-
intrusive, containerized cargo examination technologies that
possess radionuclide isotope identification capabilities.
(2) Nuclear and radiological detection system.--The term
``nuclear and radiological detection system'' means any
technology that is capable of detecting or identifying nuclear
and radiological material or explosive devices.
Passed the House of Representatives May 4, 2006.
Attest:
Clerk.