[Congressional Record Volume 151, Number 16 (Tuesday, February 15, 2005)]
[Senate]
[Pages S1415-S1417]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. HUTCHISON:
  S. 376. A bill to improve intermodal shipping container 
transportation security; to the Committee on Commerce, Science, and 
Transportation.
  Mrs. HUTCHISON. Mr. President, I rise to introduce a bill that will 
make much-needed improvements to our container security system. The 
Federal Government currently has no coordinated strategy which 
integrates the many aspects of inter-modal container shipping.
  We may not be able to physically screen every container on the move 
in our Nation's vast economy, but we should not leave vast shipments of 
cargo completely unchecked. My bill lays out a systematic plan to 
coordinate and expand existing methods of screening and securing 
materials using available technology.
  The cost to the U.S. economy of port closures on the West Coast due 
to a labor dispute last year was approximately $1 billion per day for 
the first five days, and rose sharply thereafter. These disruptions 
have become so costly because the container shipping system is designed 
for speed and efficiency; as a result, the U.S. and its global trading 
partners have in effect become hostages to a ``just-in-time'' 
distribution model where any disruption of the system has far reaching 
and immediate global impact.
  I am eager to prevent a similar situation from occurring, since in my 
home State the Port of Houston, a $15 billion petrochemical complex, is 
the second-largest port in the U.S. and first in international tonnage. 
Texas has 13 deepwater ports, many of which subsequently move freight 
by rail, a model typical nationwide.
  My bill will require the Department of Homeland Security to 
incorporate aviation, maritime, rail and highway security in a single 
plan. We need a coordinated strategy to make the most of federal, 
state, and local capabilities.
  The bill requires a ``smart box'' standard to reduce the cost of 
inspecting shipping containers and calls for all containers to meet 
this standard by 2009. It establishes penalties for commercial 
shippers, to hold them, and by extension their clients, responsible for 
properly documenting the contents of their shipments. Finally, it 
significantly increases U.S. Customs' presence overseas, because 
identifying a dirty bomb after it is unloaded onto U.S. soil may be too 
late.
  I urge my colleagues to support this legislation and I ask unanimous 
consent that the text of the bill be printed in the Record.
  There being no objection, the bill was  ordered to be printed in the 
Record, as follows: 

                                 S. 376

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Intermodal Shipping 
     Container Security Act''.

     SEC. 2. NATIONAL TRANSPORTATION SECURITY STRATEGY.

       In carrying out section 114(f) of title 49, United States 
     Code, the Under Secretary of Homeland Security for Border and 
     Transportation Security shall take into account the National 
     Maritime Transportation Security Plan prepared under section 
     70103 of title 46, United States Code, by the Secretary of 
     the department in which the Coast Guard is operating when the 
     plan is prepared in order to ensure that the strategy for 
     dealing with threats to transportation security developed 
     under section 114(f)(3) of title 49, United States Code, 
     incorporates relevant aspects of the National Maritime 
     Transportation Security Plan and addresses all modes of 
     commercial transportation to, from, and within the United 
     States.

     SEC. 3. COMPREHENSIVE STRATEGIC PLAN FOR INTERMODAL SHIPPING 
                   CONTAINER SECURITY.

       (a) Strategic Plan.--
       (1) In general.--Within 180 days after the date of 
     enactment of this Act, the Secretary of Homeland Security 
     shall submit to the Senate Committee on Commerce, Science, 
     and Transportation and the House of Representatives Committee 
     on Transportation and Infrastructure a strategic plan for 
     integrating security for all modes of transportation by which 
     intermodal shipping containers arrive, depart, or move in 
     interstate commerce in the United States that--
       (A) takes into account the security-related authorities and 
     missions of all Federal, State, and local law enforcement 
     agencies

[[Page S1416]]

     that relate to the movement of intermodal shipping containers 
     via air, rail, maritime, or highway transportation in the 
     United States; and
       (B) establishes as a goal the creation of a comprehensive, 
     integrated strategy for intermodal shipping container 
     security that encompasses the authorities and missions of all 
     those agencies and sets forth specific objectives, 
     mechanisms, and a schedule for achieving that goal.
       (2) Updates.--The Secretary shall revise the plan from time 
     to time
       (c) Identification of Problem Areas.--In developing the 
     strategic plan required by subsection (a), the Secretary 
     shall consult with all Federal, State, and local government 
     agencies responsible for security matters that affect or 
     relate to the movement of intermodal shipping containers via 
     air, rail, maritime, or highway transportation in the United 
     States in order to--
       (1) identify changes, including legislative, regulatory, 
     jurisdictional, and organizational changes, necessary to 
     improve coordination among those agencies;
       (2) reduce overlapping capabilities and responsibilities; 
     and
       (3) streamline efforts to improve the security of such 
     intermodal shipping containers.
       (d) Establishment of Steering Group.--The Secretary shall 
     establish, organize, and provide support for an advisory 
     committee, to be known as the Senior Steering Group, of 
     senior representatives of the agencies described in 
     subsection (c). The Group shall meet from time to time, at 
     the call of the Secretary or upon its own motion, for the 
     purpose of developing solutions to jurisdictional and other 
     conflicts among the represented agencies with respect to the 
     security of intermodal shipping containers, improving 
     coordination and information-sharing among the represented 
     agencies, and addressing such other, related matters, as the 
     Secretary may request.
       (e) Annual Report.--The Secretary, after consulting the 
     Senior Steering Group, shall submit an annual report to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Transportation and 
     Infrastructure describing the activities of the Senior 
     Steering Group and the Secretary under this section, 
     describing the progress made during the year toward achieving 
     the objectives of the plan, and including any 
     recommendations, including legislative recommendations, if 
     appropriate for further improvements in dealing with 
     security-issues related to intermodal shipping containers and 
     related transportation security issues.
       (f) Biennial Expert Critique.--
       (1) Expert Panel.--A panel of experts shall be convened 
     once every 2 years by the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure to review 
     plans submitted by the Secretary under subsection (a).
       (2) Membership.--The panel shall consist of--
       (A) 4 individuals selected by the chairman and ranking 
     member of the Senate Committee on Commerce, Science, and 
     Transportation and by the chairman and ranking member of the 
     House of Representatives Committee on Transportation and 
     Infrastructure, respectively; and
       (B) 1 individual selected by the 4 individuals selected 
     under subparagraph (A).
       (3) Qualifications.--Individuals selected under paragraph 
     (2) shall be chosen from among individuals with professional 
     expertise and experience in security-related issues involving 
     shipping or transportation and without regard to political 
     affiliation.
       (4) Compensation and expenses.--An individual serving as a 
     member of the panel shall not receive any compensation or 
     other benefits from the Federal Government for serving on the 
     panel or be considered a Federal employee as a result of such 
     service. Panel members shall be reimbursed by the Committees 
     for expenses, including travel and lodging, they incur while 
     actively engaged in carrying out the functions of the panel.
       (5) Function.--The panel shall review plans submitted by 
     the Secretary under subsection (a), evaluate the strategy set 
     forth in the plan, and make such recommendations to the 
     Secretary for modifying or otherwise improving the strategy 
     as may be appropriate.

     SEC. 4. SHIPPING CONTAINER INTEGRITY INITIATIVE.

       (a) In General.--Chapter 701 of title 46, United States 
     Code, is amended--
       (1) by redesignating section 70117 as section 70118; and
       (2) by inserting after section 70116 the following:

     ``Sec. 70117. ENHANCED CONTAINER-RELATED SECURITY MEASURES.

       ``(a) Tracking Intermodal Container Shipments in the United 
     States.--The Secretary, in cooperation with the Under 
     Secretary of Border and Transportation Security, shall 
     develop a system to increase the number of intermodal 
     shipping containers physically inspected (including non 
     instrusive inspection by scanning technology), monitored, and 
     tracked within the United States.
       ``(b) Smart Box Technology.--Under regulations to be 
     prescribed by the Secretary, beginning with calendar year 
     2007 no less than 50 percent of all ocean-borne shipping 
     containers entering the United States during any calendar 
     year shall incorporate `Smart Box' or equivalent technology 
     developed, approved, or certified by the Under Secretary of 
     Homeland Security for Border and Transportation Security.
       ``(c) Development of International Standard for Smart 
     Containers.--The Secretary shall--
       ``(1) develop, and seek international acceptance of, a 
     standard for `smart' maritime shipping containers that 
     incorporate technology for tracking the location and 
     assessing the integrity of those containers as they move 
     through the intermodal transportation system; and
       ``(2) implement an integrated tracking and technology 
     system for such containers.
       ``(d) Report.--Within 1 year after the date of enactment of 
     the Intermodal Shipping Container Security Act, the Secretary 
     shall transmit to the Senate Committee on Commerce, Science, 
     and Transportation and the House of Representatives Committee 
     on Transportation and Infrastructure a report that contains--
       ``(1) a cost analysis for implementing this section; and
       ``(2) a strategy for implementing the system described in 
     subsection (c)(3).''.
       (b) Conforming Amendment.--The chapter analysis for chapter 
     701 of title 46, United States Code, is amended by striking 
     the item relating to section 70117 and inserting the 
     following:
``70117. Enhanced container-related security measures.

``70118. Civil penalties.''.

     SEC. 5. ADDITIONAL RECOMMENDATIONS.

       Within 180 days after the date of enactment of this Act, 
     the Secretary of Homeland Security shall submit to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Transportation and 
     Infrastructure a report that contains the following:
       (1) Recommendations about what analysis must be performed 
     and the cost to develop and field a cargo container tracking 
     and monitoring system within the United States which tracks 
     all aviation, rail, maritime, and highway cargo containers 
     equipped with smart container technology.
       (2) Recommendations on how the Department of Homeland 
     Security could help support the deployment of such a system.
       (3) Recommendations as to how current efforts by the 
     Department of Homeland Security and other Federal agencies 
     could be incorporated into the physical screening or 
     inspection of aviation, rail, maritime, and highway cargo 
     containers within the United States.
       (4) Recommendations about operating systems and standards 
     for those operating systems, to support the tracking of 
     aviation, rail, maritime, and highway cargo containers within 
     the United States that would include the location of 
     regional, State, and local operations centers.
       (5) A description of what contingency actions, measures, 
     and mechanisms should be incorporated in the deployment of a 
     nationwide aviation, rail, maritime, and highway cargo 
     containers tracking and monitoring system which would allow 
     the United States maximum flexibility in responding quickly 
     and appropriately to increased terrorist threat levels at the 
     local, State, or regional level.
       (6) A description of what contingency actions, measures, 
     and mechanisms must be incorporated in the deployment of such 
     a system which would allow for the quick reconstitution of 
     the system in the event of a catastrophic terrorist attack 
     which affected part of the system.
       (7) Recommendations on how to leverage existing information 
     and operating systems within State or Federal agencies to 
     assist in the fielding of the system.
       (8) Recommendations on co-locating local, State, and 
     Federal agency personnel to streamline personnel 
     requirements, minimize costs, and avoid redundancy.
       (9) An initial assessment of the availability of private 
     sector resources which could be utilized, and incentive 
     systems developed, to support the fielding of the system, and 
     the maintenance and improvement as technology or terrorist 
     threat dictate.
       (10) Recommendations on how this system that is focused on 
     the continental United States would be integrated into any 
     existing or planned system, or process, which is designed to 
     monitor the movement of cargo containers outside the 
     continental United States.

     SEC. 6. IMPROVEMENTS TO CONTAINER TARGETING SYSTEMS.

       (a) In General.--Within 90 days after the date of enactment 
     of this Act, the Secretary of Homeland Security shall submit 
     a report to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure that provides a preliminary 
     plan for strengthening the Bureau of Customs and Border 
     Protection's container targeting system. The plan shall 
     identify the cost and feasibility of requiring additional 
     non-manifest documentation for each container, including 
     purchase orders, shipper's letters of instruction, commercial 
     invoices, letters of credit, or certificates of origin.
       (b) Reduction of Manifest Revision Window.--Within 60 days 
     after the date of enactment of this Act, the Secretary of 
     Homeland Security shall issue regulations under which the 
     time period for revisions to a container cargo manifest 
     submitted to the Bureau of Customs and Border Protection 
     shall be reduced from 60 days to 45 days after arrival at a 
     United States port.
       (c) Supply Chain Information.--Within 180 days after the 
     date of enactment of this Act,

[[Page S1417]]

     the Secretary of Homeland Security shall develop a system to 
     share threat and vulnerability information with all of the 
     industries in the supply chain that will allow ports, 
     carriers, and shippers to report on security lapses in the 
     supply chain and have access to unclassified maritime threat 
     and security information such as piracy incidents.

     SEC. 7. INCREASE IN NUMBER OF CUSTOMS INSPECTORS ASSIGNED 
                   OVERSEAS.

       (a) In General.--The Secretary of Homeland Security shall 
     substantially increase the number of United States Customs 
     Service inspectors assigned to duty outside the United States 
     under the Container Security Initiative of the United States 
     Customs Service with responsibility for inspecting intermodal 
     shipping containers being shipped to the United States.
       (b) Staffing Criteria.--In carrying out subsection (a) the 
     Secretary of Homeland Security shall determine the 
     appropriate level for assignment and density of customs 
     inspectors at selected international port facilities by a 
     threat, vulnerability, and risk analysis which, at a minimum, 
     considers--
       (1) the volume of containers shipped;
       (2) the ability of the host government to assist in both 
     manning and providing equipment and resources;
       (3) terrorist intelligence known of importer vendors, 
     suppliers or manufacturers; and
       (4) other criteria as determined in consult with experts in 
     the shipping industry, terrorism, and shipping container 
     security.
       (c) Minimum Number.--The total number of customs inspectors 
     assigned to international port facilities shall not be less 
     than the number determined as a result of the threat, 
     vulnerability, and risk assessment analysis which is 
     validated by the Administrator of the Transportation Security 
     Administration within 180 days after the date of enactment of 
     this Act.
       (d) Plan.--The Secretary shall submit a plan to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Transportation and 
     Infrastructure, with timelines, for phasing inspectors into 
     selected port facilities within 180 days after the enactment 
     of this Act.

     SEC. 8. RANDOM INSPECTION OF CONTAINERS.

       (a) In General.--The Under Secretary of Homeland Security 
     for Border and Transportation Security shall develop and 
     implement a plan for random inspection of shipping containers 
     in addition to any targeted or preshipment inspection of such 
     containers required by law or regulation or conducted under 
     any other program conducted by the Under Secretary.
       (b) Civil Penalty for Erroneous Manifest.--
       (1) In general.--Except as provided in paragraph (2), if 
     the Under Secretary determines on the basis of an inspection 
     conducted under subsection (a) that there is a discrepancy 
     between the contents of a shipping container and the manifest 
     for that container, the Under Secretary may impose a civil 
     penalty of not more than $1,000 for the discrepancy.
       (2) Manifest discrepancy reporting.--The Under Secretary 
     may not impose a civil penalty under paragraph (1) if a 
     manifest discrepancy report is filed with respect to the 
     discrepancy within the time limits established by Customs 
     Directive No. 3240-067A (or any subsequently issued directive 
     governing the matters therein) for filing a manifest 
     discrepancy report.
                                 ______