[Congressional Record (Bound Edition), Volume 150 (2004), Part 14]
[Senate]
[Pages 18768-18777]
[From the U.S. Government Publishing Office, www.gpo.gov]




              MARITIME TRANSPORTATION SECURITY ACT OF 2004

  Mr. McCONNELL. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 530, S. 2279.
  The PRESIDING OFFICER. The clerk will state the bill by title.
  The legislative clerk read as follows:

       A bill (S. 2279) to amend title 46, United States Code, 
     with respect to maritime transportation security, and for 
     other purposes.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Commerce, Science, and 
Transportation, with an amendment to strike all after the enacting 
clause and insert in lieu thereof the following:
  (Strike the part shown in black brackets and insert the part shown in 
italic.)

                                S. 2279

       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 ``Maritime 
     Transportation Security Act of 2004''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

[Sec. 1. Short title; table of contents
[Sec. 2. In rem liability; enforcement; pier and wharf security costs.
[Sec. 3. Maritime information.
[Sec. 4. Intermodal cargo security plan.
[Sec. 5. Joint operations center for port security.
[Sec. 6. Maritime transportation security plan grants.
[Sec. 7. Assistance for foreign ports.
[Sec. 8. Federal and State commercial maritime transportation training.
[Sec. 9. Port security research and development.
[Sec. 10. Nuclear facilities in maritime areas.
[Sec. 11. Transportation worker background investigation programs.
[Sec. 12. Security service fee.
[Sec. 13. Port security capital fund.

     [SEC. 2. IN REM LIABILITY; ENFORCEMENT; PIER AND WHARF 
                   SECURITY COSTS.

       [(a) In General.--Chapter 701 of title 46, United States 
     Code, is amended--
       [(1) by redesignating section 70117 as 70120; and
       [(2) by inserting after section 70116 the following:

     [``Sec.  70117. In rem liability for civil penalties and 
       certain costs

       [``(a) In General.--Any vessel subject to the provisions of 
     this chapter, which is used in violation of this chapter or 
     any regulations issued hereunder shall be liable in rem for 
     any civil penalty assessed pursuant to section 70120 and may 
     be proceeded against in the United States district court for 
     any district in which such vessel may be found.
       [``(b) Reimbursable Costs.--
       [``(1) In general.--Any vessel subject to the provisions of 
     this chapter shall be liable in rem for the reimbursable 
     costs incurred by any valid claimant related to 
     implementation and enforcement of this chapter with respect 
     to the vessel, including port authorities, facility or 
     terminal operators, shipping agents, Federal, State, or local 
     government agencies, and other persons to whom the management 
     of the vessel at the port of supply is entrusted, and any 
     fine or penalty relating to reporting requirements of the 
     vessel or its cargo, crew, or passengers, and may be 
     proceeded against in the United States district court for any 
     district in which such vessel may be found.

[[Page 18769]]

       [``(2) Reimbursable costs defined.--In this subsection the 
     term `reimbursable costs' means costs incurred by any service 
     provider, including port authorities, facility or terminal 
     operators, shipping agents, Federal, State, or local 
     government agencies, or other person to whom the management 
     of the vessel at the port of supply is entrusted, for--
       [``(A) vessel crew on board, or in transit to or from, the 
     vessel under lawful order, including accommodation, 
     detention, transportation, and medical expenses; and
       [``(B) required handling under lawful order of cargo or 
     other items on board the vessel.

     [``Sec. 70118. Enforcement by injunction or withholding of 
       clearance

       [``(a) Injunction.--The United States district courts shall 
     have jurisdiction to restrain violations of this chapter or 
     of regulations issued hereunder, for cause shown.
       [``(b) Withholding of Clearance.--
       [``(1) If any owner, agent, master, officer, or person in 
     charge of a vessel is liable for a penalty or fine under 
     section 70120, or if reasonable cause exists to believe that 
     the owner, agent, master, officer, or person in charge may be 
     subject to a penalty under section 70120, the Secretary may, 
     with respect to such vessel, refuse or revoke any clearance 
     required by section 4197 of the Revised Statutes of the 
     United States (46 U.S.C. App. 91).
       [``(2) Clearance refused or revoked under this subsection 
     may be granted upon filing of a bond or other surety 
     satisfactory to the Secretary.

     [``Sec. 70119. Security of piers and wharfs

       [``(a) In General.--Notwithstanding any provision of law, 
     the Secretary shall require any uncleared, imported 
     merchandise remaining on the wharf or pier onto which it was 
     unladen for more than 5 calendar days to be removed from the 
     wharf or pier and deposited in the public stores or a general 
     order warehouse, where it shall be inspected for 
     determination of contents, and thereafter a permit for its 
     delivery may be granted.
       [``(b) Penalty.--The Secretary may impose an administrative 
     penalty of $5,000 for each bill of lading for general order 
     merchandise remaining on a wharf or pier in violation of 
     subsection (a).''.
       [(b) Conforming Amendment for In Rem Liability Provision in 
     Chapter 701.--Section 2 of the Act of June 15, 1917 (50 
     U.S.C. 192) is amended--
       [(1) by striking ``Act,'' each place it appears and 
     inserting ``title,''; and
       [(2) by adding at the end the following:
       [``(d) In Rem Liability.--Any vessel subject to the 
     provisions of this title, which is used in violation of this 
     title, or any regulations issued hereunder, shall be liable 
     in rem for any civil penalty assessed pursuant to subsection 
     (c) and may be proceeded against in the United States 
     district court for any district in which such vessel may be 
     found.
       [``(e) Injunction.--The United States district courts shall 
     have jurisdiction to restrain violations of this title or of 
     regulations issued hereunder, for cause shown.
       [``(f) Withholding of Clearance.--
       [``(1) If any owner, agent, master, officer, or person in 
     charge of a vessel is liable for a penalty or fine under 
     subsection (c), or if reasonable cause exists to believe that 
     the owner, agent, master, officer, or person in charge may be 
     subject to a penalty or fine under subsection (c), the 
     Secretary may, with respect to such vessel, refuse or revoke 
     any clearance required by section 4197 of the Revised 
     Statutes of the United States (46 U.S.C. App. 91).
       [``(2) Clearance refused or revoked under this subsection 
     may be granted upon filing of a bond or other surety 
     satisfactory to the Secretary of the Department in which the 
     Coast Guard is operating.''.
       [(c) Empty Containers.--Within 90 days after the date of 
     enactment of this Act, the Secretary of Homeland Security 
     shall review United States ports and transmit to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Transportation and 
     Infrastructure a report on the practices and policies in 
     place to secure shipment of empty containers. The Secretary 
     shall include in the report recommendations with respect to 
     whether additional regulations or legislation is necessary to 
     ensure the safe and secure delivery of cargo and to prevent 
     potential acts of terrorism involving such containers.
       [(d) Clerical Amendment.--The chapter analysis for chapter 
     701 of title 46, United States Code, is amended by striking 
     the last item and inserting the following:

[``70117. In rem liability for civil penalties and certain costs
[``70118. Enforcement by injunction or withholding of clearance
[``70119. Security of piers and wharfs
[``70120. Civil penalty''.

     [SEC. 3. MARITIME INFORMATION.

       [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 the 
     implementation of section 70113 of title 46, United States 
     Code. The plan shall--
       [(1) provide the identification of Federal agencies with 
     maritime information relating to vessels, crew, passengers, 
     cargo, and cargo shippers;
       [(2) establish a timeline for coordinating the efforts of 
     those Federal agencies in the collection of maritime 
     information;
       [(3) establish a timeline for the incorporation of 
     information on vessel movements derived through the 
     implementation of sections 70114 and 70115 of title 46, 
     United States Code;
       [(4) include recommendations on co-locating agency 
     personnel in order to maximize expertise, minimize cost, and 
     avoid redundancy;
       [(5) include recommendations on how to leverage information 
     on commercial maritime information collected by the 
     Department of the Navy, and identify any legal impediments 
     that would prevent or reduce the utilization of such 
     information outside the Department of the Navy;
       [(6) include recommendations on educating Federal officials 
     on commercial maritime operations in order to facilitate the 
     identification of security risks posed through commercial 
     maritime transportation operations;
       [(7) include recommendations on how private sector 
     resources could be utilized to collect or analyze 
     information, along with a preliminary assessment of the 
     availability and expertise of private sector resources;
       [(8) include recommendations on how to disseminate 
     information collected and analyzed through Federal maritime 
     security coordinator while considering the need for 
     nondisclosure of sensitive security information and the 
     maximizing of security through the utilization of State, 
     local, and private security personnel; and
       [(9) include recommendations on how the Department could 
     help support a maritime information sharing and analysis 
     center for the purpose of collecting information from public 
     and private entities, along with recommendations on the 
     appropriate levels of funding to help disseminate maritime 
     security information to the private sector.

     [SEC. 4. INTERMODAL CARGO SECURITY PLAN.

       [(a) In General.--In addition to the plan submitted under 
     section 3, within 180 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 containing the following:
       [(1) Secure systems of transportation (46 u.s.c. 70116).--A 
     plan, along with timelines, for the implementation of section 
     70116 of title 46, United States Code. The plan shall--
       [(A) provide an update on current efforts by the Department 
     of Homeland Security could be incorporated into the 
     certification process outlined in section 70116 to ensure the 
     physical screening or inspection of imported cargo;
       [(B) provide a preliminary assessment of resources 
     necessary to evaluate and certify ``Secure Systems of 
     Transportation'', and the resources necessary to validate 
     that ``Secure Systems of Transportation'' are operating in 
     compliance with the certification requirements; and
       [(C) contain an analysis of the feasibility of establishing 
     a user fee in order to be able to evaluate, certify, and 
     validate ``Secure Systems of Transportation''.
       [(2) Radiation detectors.--A report on progress in the 
     installation of a system of radiation detection at all major 
     United States seaports, along with a timeline and expected 
     completion date for the system. In the report, the Secretary 
     shall include a preliminary analysis of any issues related to 
     the installation of the radiation detection equipment, as 
     well as a cost estimate for completing installation of the 
     system.
       [(3) Non-intrusive inspection at foreign ports.--A report--
       [(A) on whether and to what extent foreign seaports have 
     been willing to utilize screening equipment at their ports to 
     screen cargo, including the number of cargo containers that 
     have been screened at foreign seaports, and the ports where 
     they were screened;
       [(B) indicating which foreign ports may be willing to 
     utilize their screening equipment for cargo exported for 
     import into the United States, and a recommendation as to 
     whether, and to what extent, United States cargo screening 
     equipment will be required to be purchased and stationed at 
     foreign seaports for inspection; and
       [(C) indicating to what extent additional resources and 
     program changes will be necessary to maximize scrutiny of 
     cargo in foreign seaports.
       [(4) Compliance with security standard programs.--A plan to 
     establish, validate, and ensure compliance with security 
     standards that would require ports, terminals, vessel 
     operators, and shippers to adhere to security standards 
     established by or consistent with the National Transportation 
     System Security Plan. The plan shall indicate what resources 
     will be utilized, and how they would be utilized, to ensure 
     that companies operate in compliance with security standards.
       [(b) Evaluation of Cargo Inspection Targeting System for 
     International Intermodal Cargo Containers.--
       [(1) In general.--Within 6 months after the date of 
     enactment of this Act, and annually thereafter, the Inspector 
     General of the

[[Page 18770]]

     Department of Homeland Security shall evaluate the system 
     used by the Department to target international intermodal 
     containers for inspection and report the results of the 
     evaluation to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure. In conducting the 
     evaluation, the Inspector General shall assess--
       [(A) the effectiveness of the current tracking system to 
     determine whether it is adequate to prevent international 
     intermodal containers from being used for purposes of 
     terrorism;
       [(B) the sources of information used by the system to 
     determine whether targeting information is collected from the 
     best and most credible sources and evaluate data sources to 
     determine information gaps and weaknesses;
       [(C) the targeting system for reporting and analyzing 
     inspection statistics, as well as testing effectiveness;
       [(D) the competence and training of employees operating the 
     system to determine whether they are sufficiently capable to 
     detect potential terrorist threats; and
       [(E) whether the system is an effective system to detect 
     potential acts of terrorism and whether additional steps need 
     to be taken in order to remedy deficiencies in targeting 
     international intermodal containers for inspection.
       [(2) Increase in inspections.--If the Inspector General 
     determines in any of the reports required by paragraph (1) 
     that the targeting system is insufficiently effective as a 
     means of detecting potential acts of terrorism utilizing 
     international intermodal containers, then within 12 months 
     after that report, the Secretary of Homeland Security shall 
     double the number of containers subjected to intrusive or 
     non-intrusive inspection at United States ports or to be 
     shipped to the United States at foreign seaports.
       [(c) Report and Plan Formats.--The Secretary and the 
     Inspector General may submit any plan or report required by 
     this section in both classified and redacted formats if the 
     Secretary determines that it is appropriate or necessary.

     [SEC. 5. JOINT OPERATIONS CENTER FOR PORT SECURITY.

       [The Commandant of the United States Coast Guard shall 
     report to Congress, within 180 days after the date of 
     enactment of this Act, on the potential benefits of 
     establishing joint operational centers for port security at 
     certain United States seaports. The report shall consider the 
     3 Joint Operational Centers that have been established at 
     Norfolk, Charleston, San Diego, and elsewhere and compare and 
     contrast their composition and operational characteristics. 
     The report shall consider--
       [(1) whether it would be beneficial to establish linkages 
     to Federal maritime information systems established pursuant 
     to section 70113 of title 46, United States Code;
       [(2) whether the operational centers could be beneficially 
     utilized to track vessel movements under sections 70114 and 
     70115 of title 46, United States Code;
       [(3) whether the operational centers could be beneficial in 
     the facilitation of intermodal cargo security programs such 
     as the ``Secure Systems of Transportation Program'';
       [(4) the extent to which such operational centers could be 
     beneficial in the operation of maritime area security plans 
     and maritime area contingency response plans and in 
     coordinating the port security activities of Federal, State, 
     and local officials; and
       [(5) include recommendations for the number of centers and 
     their possible location, as well as preliminary cost 
     estimates for the operation of the centers.

     [SEC. 6. MARITIME TRANSPORTATION SECURITY PLAN GRANTS.

       [Section 70107(a) of title 46, United States Code, is 
     amended to read as follows:
       [``(a) In General.--The Under Secretary of Homeland 
     Security for Border and Transportation Security shall 
     establish a grant program for making a fair and equitable 
     allocation of funds to implement Area Maritime Transportation 
     Security Plans and to help fund compliance with Federal 
     security plans among port authorities, facility operators, 
     and State and local agencies required to provide security 
     services. Grants shall be made on the basis of the need to 
     address vulnerabilities in security subject to review and 
     comment by the appropriate Federal Maritime Security 
     Coordinators and the Maritime Administration. The grant 
     program shall take into account national economic and 
     strategic defense concerns and shall be coordinated with the 
     Director of the Office of Domestic Preparedness to ensure 
     that the grant process is consistent with other Department of 
     Homeland Security grant programs.''.

     [SEC. 7. ASSISTANCE FOR FOREIGN PORTS.

       [Section 70109 of title 46, United States Code, is 
     amended--
       [(1) by striking ``The Secretary'' in subsection (b) and 
     inserting ``The Administrator of the Maritime 
     Administration''; and
       [(2) by adding at the end the following:
       [``(c) Foreign Assistance Programs.--The Administrator of 
     the Maritime Administration, in coordination with the 
     Secretary of State, shall identify foreign assistance 
     programs that could facilitate implementation of port 
     security antiterrorism measures in foreign countries. The 
     Administrator and the Secretary shall establish a program to 
     utilize those programs that are capable of implementing port 
     security antiterrorism measures at ports in foreign countries 
     that the Secretary finds, under section 70108, to lack 
     effective antiterrorism measures.''.

     [SEC. 8. FEDERAL AND STATE COMMERCIAL MARITIME TRANSPORTATION 
                   TRAINING.

       [Section 109 of the Maritime Transportation Security Act of 
     2002 (46 U.S.C. 70101 note) is amended--
       [(1) by redesignating subsections (c) through (f) as 
     subsections (d) through (g), respectively; and
       [(2) by inserting after subsection (b) the following:
       [``(c) Federal and State Commercial Maritime Transportation 
     Training.--The Secretary of Transportation shall establish a 
     curriculum, to be incorporated into the curriculum developed 
     under subsection (a)(1), to educate and instruct Federal and 
     State officials on commercial maritime and intermodal 
     transportation. The curriculum shall be designed to 
     familiarize those officials with commercial maritime 
     transportation in order to facilitate performance of their 
     commercial maritime and intermodal transportation security 
     responsibilities. In developing the standards for the 
     curriculum, the Secretary shall consult with each agency in 
     the Department of Homeland Security with maritime security 
     responsibilities to determine areas of educational need. The 
     Secretary shall also coordinate with the Federal Law 
     Enforcement Training Center in the development of the 
     curriculum and the provision of training opportunities for 
     Federal and State law enforcement officials at appropriate 
     law enforcement training facilities.

     [SEC. 9. RESEARCH AND DEVELOPMENT.

       [(a) In General.--Section 70107 of title 46, United States 
     Code, is amended by striking subsection (i) and inserting the 
     following:
       [``(i) Research and Development.--
       [``(1) In general.--As part of the research and development 
     program within the Science and Technology directorate, the 
     Secretary of Homeland Security shall conduct investigations, 
     fund pilot programs, award grants, and otherwise conduct 
     research and development across the various portfolios 
     focused on making United States ports safer and more secure. 
     Research conducted under this subsection may include--
       [``(A) methods or programs to increase the ability to 
     target for inspection vessels, cargo, crewmembers, or 
     passengers that will arrive or have arrived at any port or 
     place in the United States;
       [``(B) equipment to detect accurately explosives, chemical, 
     or biological agents that could be used to commit terrorist 
     acts against the United States;
       [``(C) equipment to detect accurately nuclear or 
     radiological materials, including scintillation-based 
     detection equipment capable of signalling the presence of 
     nuclear or radiological materials;
       [``(D) improved tags and seal designed for use on shipping 
     containers to track the transportation of the merchandise in 
     such containers, including `smart sensors' that are able to 
     track a container throughout its entire supply chain, detect 
     hazardous and radioactive materials within that container, 
     and transmit that information to the appropriate law 
     enforcement authorities;
       [``(E) tools, including the use of satellite tracking 
     systems, to increase the awareness of maritime areas and to 
     identify potential terrorist threats that could have an 
     impact on facilities, vessels, and infrastructure on or 
     adjacent to navigable waterways, including underwater access;
       [``(F) tools to mitigate the consequences of a terrorist 
     act on, adjacent to, or under navigable waters of the United 
     States, including sensor equipment, and other tools to help 
     coordinate effective response to a terrorist action; and
       [``(G) applications to apply existing technologies from 
     other areas or industries to increase overall port security.
       [``(2) Implementation of technology.--
       [``(A) In general.--In conjunction with ongoing efforts to 
     improve security at United States ports, the Director of the 
     Science and Technology Directorate, in consultation with 
     other Department of Homeland Security agencies with 
     responsibility for port security, may conduct pilot projects 
     at United States ports to test the effectiveness and 
     applicability of new port security projects, including--
       [``(i) testing of new detection and screening technologies;
       [``(ii) projects to protect United States ports and 
     infrastructure on or adjacent to the navigable waters of the 
     United States, including underwater access; and
       [``(iii) tools for responding to a terrorist threat or 
     incident at United States ports and infrastructure on or 
     adjacent to the navigable waters of the United States, 
     including underwater access.
       [``(B) Authorization of appropriations.--There are 
     authorized to be appropriated to the Secretary of Homeland 
     Security $35,000,000 for each of fiscal years 2005 through 
     2009 to carry out pilot projects under subparagraph (A).
       [``(3) Administrative provisions.--

[[Page 18771]]

       [``(A) No duplication of effort.--Before making any grant, 
     the Secretary of Homeland Security shall coordinate with 
     other Federal agencies to ensure the grant will not be used 
     for research and development that is already being conducted 
     with Federal funding.
       [``(B) Accounting.--The Secretary of Homeland Security 
     shall by regulation establish accounting, reporting, and 
     review procedures to ensure that funds made available under 
     paragraph (1) are used for the purpose for which they were 
     made available, that all expenditures are properly accounted 
     for, and that amounts not used for such purposes and amounts 
     not expended are recovered.
       [``(C) Recordkeeping.--Recipients of grants shall keep all 
     records related to expenditures and obligations of funds 
     provided under paragraph (1) and make them available upon 
     request to the Inspector General of the Department of 
     Homeland Security and the Secretary of Homeland Security for 
     audit and examination.''.
       [(b) Annual Report.--Within 30 days after the beginning of 
     each fiscal year from fiscal year 2005 through fiscal year 
     2009, the Director of the Science and Technology Directorate 
     shall submit a report describing its research that can be 
     applied to port security to the Senate Committee on Commerce, 
     Science, and Transportation, the House of Representatives 
     Committee on Science, and the House of Representatives Select 
     Committee on Homeland Security. The report shall--
       [(1) describe any port security-related research, including 
     grants and pilot projects, that were conducted in the 
     preceding fiscal year;
       [(2) describe the amount of Department of Homeland Security 
     resources dedicated to research that can be applied to port 
     security;
       [(3) describe the steps taken to coordinate with other 
     agencies within the Department to ensure that research 
     efforts are coordinated with port security efforts;
       [(4) describe how the results of the Department's research, 
     as well as port security related research of the Department 
     of Defense, will be implemented in the field, including 
     predicted timetables;
       [(5) lay out the plans for research in the current fiscal 
     year; and
       [(6) include a description of the funding levels for the 
     research in the preceding, current, and next fiscal years.

     [SEC. 10. NUCLEAR FACILITIES IN MARITIME AREAS.

       [(a) Waterways.--Section 70103(b) is amended by adding at 
     the end thereof the following:
       [``(5) Waterways located near nuclear facilities.--
       [``(A) Identification and security evaluation.--The 
     Secretary shall--
       [``(i) identify all nuclear facilities on, adjacent to, or 
     in close proximity to navigable waterways that might be 
     damaged by a transportation security incident;
       [``(ii) in coordination with the Secretary of Energy, 
     evaluate the security plans of each such nuclear facility for 
     its adequacy to protect the facility from damage or 
     disruption from a transportation security incident 
     originating in the navigable waterway, including threats 
     posed by navigation, underwater access, and the introduction 
     of harmful substances into water coolant systems.
       [``(B) Rectification of deficiencies.--The Secretary, in 
     coordination with the Secretary of Energy, shall take such 
     steps as may be necessary or appropriate to correct any 
     deficiencies in security identified in the evaluations 
     conducted under subparagraph (A).
       [``(C) Report.--As soon as practicable after completion of 
     the evaluation under subparagraph (A), the Secretary shall 
     transmit a report, in both classified and redacted format, to 
     the Senate Committee on Commerce, Science, and 
     Transportation, the House of Representatives Committee on 
     Transportation and Infrastructure, and the House of 
     Representatives Select Committee on Homeland Security--
       [``(i) describing the results of the identification and 
     evaluation required by subparagraph (A);
       [``(ii) describing the actions taken under subparagraph 
     (B); and
       [``(iii) evaluating the technology utilized in the 
     protection of nuclear facilities (including any such 
     technology under development).''.
       [(b) Vessels.--Section 70103(c)(3) of title 46, United 
     States Code, is amended--
       [(1) by striking ``and'' after the semicolon in 
     subparagraph (F);
       [(2) by striking ``facility.'' in subparagraph (G) and 
     inserting ``facility; and''; and
       [(3) by adding at the end the following:
       [``(H) establish a requirement, coordinated with the 
     Department of Energy, for criminal background checks of all 
     United States and foreign seamen employed on vessels 
     transporting nuclear materials in the navigable waters of the 
     United States.''.

     [SEC. 11. TRANSPORTATION WORKER BACKGROUND INVESTIGATION 
                   PROGRAMS.

       [Within 120 days after the date of enactment of this Act, 
     the Secretary of Homeland Security, after consultation with 
     the Secretary of Transportation, shall transmit a report to 
     the Senate Committee on Commerce, Science, and Transportation 
     and the House of Representatives Committee on Transportation 
     and Infrastructure--
       [(1) making recommendations (including legislative 
     recommendations, if appropriate or necessary) for 
     harmonizing, combining, or coordinating requirements, 
     procedures, and programs for conducting background checks 
     under section 70105 of title 46, United States Code, section 
     5103a(c) of title 49, United States Code, section 44936 of 
     title 49, United States Code, and other provisions of Federal 
     law or regulations requiring background checks for 
     individuals engaged in transportation or transportation-
     related activities; and
       [(2) setting forth a detailed timeline for implementation 
     of such harmonization, combination, or coordination.

     [SEC. 12. SECURITY SERVICE FEE.

       [(a) In General.--Chapter 701 of title 46, United States 
     Code, as amended by section 2, is further amended by adding 
     at the end the following:

     ``Sec. 70121. Security service fee

       [``(a) In General.--
       [``(1) Security fee.--Within 90 days after the date of 
     enactment of the Maritime Transportation Security Act of 
     2004, the Secretary of Homeland Security shall assess and 
     collect an international port security service fee on 
     commercial maritime transportation entities that benefit from 
     a secure system of international maritime transportation to 
     pay for the costs of providing port security services. The 
     amount of the fees assessed and collected under this 
     paragraph and paragraph (2) shall, in the aggregate, be 
     sufficient to provide the services and levels of funding 
     described in section 70122(c).
       [``(2) International transshipment security fee.--The 
     Secretary shall also assess and collect an international 
     maritime transshipment security user fee for providing 
     security services for shipments of cargo and transportation 
     of passengers entering the United States as part of an 
     international transportation movement by water through 
     Canadian or Mexican ports at the same rates as the fee 
     imposed under paragraph (1). The fee authorized by this 
     paragraph shall not be assessed or collected on 
     transshipments from--
       [(A) Canada after the date on which the Secretary 
     determines that an agreement between the United States and 
     Canada, or
       [(B) Mexico after the date on which the Secretary 
     determines that an agreement between the United States and 
     Mexico,
     has entered into force that will provide equivalent security 
     regimes and international maritime security user fees of the 
     United States and that country for transshipments between the 
     countries.
       [``(b) Schedule of Fees.--In imposing fees under subsection 
     (a), the Secretary shall ensure that the fees are reasonably 
     related to the costs of providing services rendered and the 
     value of the benefit derived from the continuation of secure 
     international maritime transportation.
       [``(c) Imposition of Fee.--
       [``(1) In general.--Notwithstanding section 9701 of title 
     31 and the procedural requirements of section 553 of title 5, 
     the Secretary shall impose the fees under subsection (a) 
     through the publication of notice in the Federal Register and 
     begin collection of the fee within 60 days of the date of 
     enactment of the Maritime Transportation Security Act of 
     2004, or as soon as possible thereafter. No fee shall be 
     assessed more than once, and no fee shall be assessed for 
     international ferry voyages.
       [``(2) Means of collection.--The Secretary shall prescribe 
     procedures to collect fees under this section. The Secretary 
     may use a department, agency, or instrumentality of the 
     United States Government or of a State or local government to 
     collect the fee and may reimburse the department, agency, or 
     instrumentality a reasonable amount for its services.
       [``(3) Subsequent modification of fee.--After imposing a 
     fee under subsection (a), the Secretary may modify, from time 
     to time through publication of notice in the Federal 
     Register, the imposition or collection of such fee, or both. 
     The Secretary shall evaluate the fee annually to determine 
     whether it is necessary and appropriate to pay the cost of 
     activities and services, and shall adjust the amount of the 
     fee accordingly.
       [``(4) Limitation on collection.--No fee may be collected 
     under this section except to the extent that the expenditure 
     of the fee to pay the costs of activities and services for 
     which the fee is imposed is provided for in advance in an 
     appropriations Act.
       [``(d) Administration of Fees.--
       [``(1) Fees payable to secretary.--All fees imposed and 
     amounts collected under this section are payable to the 
     Secretary.
       [``(2) Information.--The Secretary may require the 
     provision of such information as the Secretary decides is 
     necessary to verify that fees have been collected and 
     remitted at the proper times and in the proper amounts.
       [``(e) Receipts Credited as Offsetting Collections.--
     Notwithstanding section 3302 of title 31, any fee collected 
     under this section--
       [``(1) shall be credited as offsetting collections to the 
     account that finances the activities and services for which 
     the fee is imposed;

[[Page 18772]]

       [``(2) shall be available for expenditure only to pay the 
     costs of activities and services for which the fee is 
     imposed; and
       [``(3) shall remain available until expended.
       [``(f) Refunds.--The Secretary may refund any fee paid by 
     mistake or any amount paid in excess of that required.
       [``(g) Sunset.--The fees authorized by subsection (a) may 
     not be assessed after September 31, 2009.''.
       [(b) Conforming Amendment.--The chapter analysis for 
     chapter 701 of title 46, United States Code, as amended by 
     section 2, is amended by adding at the end the following:

[``70121. Security service fee.''.

     [SEC. 13. PORT SECURITY CAPITAL FUND.

       [(a) In General.--Chapter 701 of title 46, United States 
     Code, as amended by section 11, is further amended by adding 
     at the end the following:

     [``Sec. 70122. Port security capital fund.

       [``(a) In General.--There is established within the 
     Department of Homeland Security a fund to be known as the 
     Port Security Capital Fund. There are appropriated to the 
     Fund such sums as may be derived from the fees authorized by 
     section 70121(a).
       [``(b) Purpose.--Amounts in the Fund shall be available to 
     the Secretary of Homeland Security--
       [``(1) to provide financial assistance to port authorities, 
     facility operators, and State and local agencies required to 
     provide security services to defray capital investment in 
     transportation security at port facilities in accordance with 
     the provisions of this chapter;
       [``(2) to provide financial assistance to those entities 
     required to provide security services to help ensure 
     compliance with Federal area maritime security plans; and
       [``(3) to help defray the costs of Federal port security 
     programs.
       [``(c) Allocation of Funds.--
       [``(1) Funds derived from security fees.--From amounts in 
     the Fund attributable to fees collected under section 
     70121(a)(1) and (2)--
       [``(A) no less than $400,000,000 (or such amount as may be 
     appropriate to reflect any modification of the fees under 
     section 70121(c)(3)) shall be made available each fiscal year 
     for grants under section 70107 to help ensure compliance with 
     facility security plans or to help implement Area Maritime 
     Transportation Security Plans;
       [``(B) funds shall be made available to the Coast Guard for 
     the costs of implementing sections 70114 and 70115 fully by 
     the end of fiscal year 2006;
       [``(C) funds shall be made available to the Coast Guard for 
     the costs of establishing command and control centers at 
     United States ports to help coordinate port security law 
     enforcement activities and implementing Area Maritime 
     Security Plans, and may be transferred, as appropriate, to 
     port authorities, facility operators, and State and local 
     government agencies to help them defray costs associated with 
     port security services;
       [``(D) funds shall be made available to the Under Secretary 
     of Homeland Security for Border and Transportation Security 
     for the costs of implementing cargo security programs, 
     including the costs of certifying secure systems of 
     transportation under section 70116;
       [``(E) funds shall be made available to the Under Secretary 
     of Homeland Security for Border and Transportation Security 
     for the costs of acquiring and operating nonintrusive 
     screening equipment at United States ports; and
       [``(F) funds shall be made available to the Transportation 
     Security Administration for the costs of implementing of 
     section 70113 and the collection of commercial maritime 
     intelligence (including the collection of commercial maritime 
     transportation information from the private sector), of which 
     a portion shall be made available to the Coast Guard and the 
     Customs Service only for the purpose of coordinating the 
     system of collecting and analyzing information on vessels, 
     crew, passengers, cargo, and intermodal shipments.
       [``(2) Transshipment fees.--Amounts in the Fund 
     attributable to fees collected under section 70121(a)(3), 
     shall be made available to the Secretary to defray the costs 
     of providing international maritime transshipment security at 
     the United States borders with Canada and Mexico.
       [``(d) Utilization Reports.--The Commandant of the Coast 
     Guard and the Secretary of Homeland Security shall report 
     annually to the Senate Committee on Commerce, Science, and 
     Transportation and the House of Representatives Committee on 
     Transportation and Infrastructure on utilization of amounts 
     received from the Fund.
       [``(e) Letters of Intent.--The Secretary of Homeland 
     Security, or his delegate, may execute letters of intent to 
     commit funding to port sponsors from the Fund.''.
       [(f) Conforming Amendment.--The chapter analysis for 
     chapter 701 of title 46, United States Code, as amended by 
     section 11, is amended by adding at the end the following:

[``70122. Port security capital fund.''.]

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Maritime 
     Transportation Security Act of 2004''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents
Sec. 2. In rem liability; enforcement; pier and wharf security costs.
Sec. 3. Maritime information.
Sec. 4. Intermodal cargo security plan.
Sec. 5. Joint operations center for port security.
Sec. 6. Maritime transportation security plan grants.
Sec. 7. Assistance for foreign ports.
Sec. 8. Federal and State commercial maritime transportation training.
Sec. 9. Port security research and development.
Sec. 10. Nuclear facilities in maritime areas.
Sec. 11. Transportation worker background investigation programs.
Sec. 12. Report on cruise ship security.
Sec. 13. Report on design of maritime security grant programs.

     SEC. 2. IN REM LIABILITY; ENFORCEMENT; PIER AND WHARF 
                   SECURITY COSTS.

       (a) In General.--Chapter 701 of title 46, United States 
     Code, is amended--
       (1) by redesignating section 70117 as 70120; and
       (2) by inserting after section 70116 the following:

     ``Sec.  70117. In rem liability for civil penalties and 
       certain costs

       ``(a) In General.--Any vessel subject to the provisions of 
     this chapter, which is used in violation of this chapter or 
     any regulations issued hereunder shall be liable in rem for 
     any civil penalty assessed pursuant to section 70120 and may 
     be proceeded against in the United States district court for 
     any district in which such vessel may be found.
       ``(b) Reimbursable Costs.--
       ``(1) In general.--Any vessel subject to the provisions of 
     this chapter shall be liable in rem for the reimbursable 
     costs incurred by any valid claimant related to 
     implementation and enforcement of this chapter with respect 
     to the vessel, including port authorities, facility or 
     terminal operators, shipping agents, Federal, State, or local 
     government agencies, and other persons to whom the management 
     of the vessel at the port of supply is entrusted, and any 
     fine or penalty relating to reporting requirements of the 
     vessel or its cargo, crew, or passengers, and may be 
     proceeded against in the United States district court for any 
     district in which such vessel may be found.
       ``(2) Reimbursable costs defined.--In this subsection the 
     term `reimbursable costs' means costs incurred by any service 
     provider, including port authorities, facility or terminal 
     operators, shipping agents, Federal, State, or local 
     government agencies, or other person to whom the management 
     of the vessel at the port of supply is entrusted, for--
       ``(A) vessel crew on board, or in transit to or from, the 
     vessel under lawful order, including accommodation, 
     detention, transportation, and medical expenses; and
       ``(B) required handling under lawful order of cargo or 
     other items on board the vessel.

     ``Sec. 70118. Enforcement by injunction or withholding of 
       clearance

       ``(a) Injunction.--The United States district courts shall 
     have jurisdiction to restrain violations of this chapter or 
     of regulations issued hereunder, for cause shown.
       ``(b) Withholding of Clearance.--
       ``(1) If any owner, agent, master, officer, or person in 
     charge of a vessel is liable for a penalty or fine under 
     section 70120, or if reasonable cause exists to believe that 
     the owner, agent, master, officer, or person in charge may be 
     subject to a penalty under section 70120, the Secretary may, 
     with respect to such vessel, refuse or revoke any clearance 
     required by section 4197 of the Revised Statutes of the 
     United States (46 U.S.C. App. 91).
       ``(2) Clearance refused or revoked under this subsection 
     may be granted upon filing of a bond or other surety 
     satisfactory to the Secretary.

     ``Sec. 70119. Security of piers and wharfs

       ``(a) In General.--Notwithstanding any other provision of 
     law, the Secretary shall require any uncleared, imported 
     merchandise remaining on the wharf or pier onto which it was 
     unladen for more than 5 calendar days to be removed from the 
     wharf or pier and deposited in the public stores or a general 
     order warehouse, where it shall be inspected for 
     determination of contents, and thereafter a permit for its 
     delivery may be granted.
       ``(b) Penalty.--The Secretary may impose an administrative 
     penalty of $5,000 for each bill of lading for general order 
     merchandise remaining on a wharf or pier in violation of 
     subsection (a).''.
       (b) Conforming Amendment for In Rem Liability Provision in 
     Chapter 701.--Section 2 of the Act of June 15, 1917 (50 
     U.S.C. 192) is amended--
       (1) by striking ``Act,'' each place it appears in 
     subsection (c) and inserting ``title,''; and
       (2) by adding at the end the following:
       ``(d) In rem liability.--Any vessel subject to the 
     provisions of this title that is used in violation of this 
     title, or any regulations issued hereunder, shall be liable 
     in rem for any civil penalty assessed pursuant to subsection 
     (c) and may be proceeded against in the United States 
     district court for any district in which such vessel may be 
     found.
       ``(e) Injunction.--The United States district courts shall 
     have jurisdiction to restrain violations of this title or of 
     regulations issued hereunder, for cause shown.
       ``(f) Withholding of clearance.--

[[Page 18773]]

       ``(1) If any owner, agent, master, officer, or person in 
     charge of a vessel is liable for a penalty or fine under 
     subsection (c), or if reasonable cause exists to believe that 
     the owner, agent, master, officer, or person in charge may be 
     subject to a penalty or fine under subsection (c), the 
     Secretary may, with respect to such vessel, refuse or revoke 
     any clearance required by section 4197 of the Revised 
     Statutes of the United States (46 U.S.C. App. 91).
       ``(2) Clearance refused or revoked under this subsection 
     may be granted upon filing of a bond or other surety 
     satisfactory to the Secretary of the Department in which the 
     Coast Guard is operating.''.
       (c) Empty Containers.--Within 90 days after the date of 
     enactment of this Act, the Secretary of Homeland Security 
     shall review United States ports and transmit to the Senate 
     Committee on Commerce, Science, and Transportation and the 
     House of Representatives Committee on Transportation and 
     Infrastructure a report on the practices and policies in 
     place to secure shipment of empty containers. The Secretary 
     shall include in the report recommendations with respect to 
     whether additional regulations or legislation is necessary to 
     ensure the safe and secure delivery of cargo and to prevent 
     potential acts of terrorism involving such containers.
       (d) Clerical amendment.--The chapter analysis for chapter 
     701 of title 46, United States Code, is amended by striking 
     the last item and inserting the following:

``70117. In rem liability for civil penalties and certain costs
``70118. Enforcement by injunction or withholding of clearance
``70119. Security of piers and wharfs
``70120. Civil penalty''.

     SEC. 3. MARITIME INFORMATION.

       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 the 
     implementation of section 70113 of title 46, United States 
     Code. The plan shall--
       (1) identify Federal agencies with maritime information 
     relating to vessels, crew, passengers, cargo, and cargo 
     shippers, those agencies' maritime information collection and 
     analysis activities, and the resources devoted to those 
     activities;
       (2) establish a lead agency within the Department of 
     Homeland Security to coordinate the efforts of other 
     Department agencies in the collection of maritime information 
     and to identify and avoid unwanted redundancy in those 
     efforts;
       (3) establish a timeline for coordinating the efforts of 
     those Federal agencies in the collection of maritime 
     information;
       (4) include recommendations on co-locating agency personnel 
     in order to maximize expertise, minimize costs, and avoid 
     redundancy in both the collection and analysis of maritime 
     information;
       (5) establish a timeline for the incorporation of 
     information on vessel movements derived through the 
     implementation of sections 70114 and 70115 of title 46, 
     United States Code;
       (6) include recommendations on how to leverage information 
     on commercial maritime information collected by the 
     Department of the Navy, and identify any legal impediments 
     that would prevent or reduce the utilization of such 
     information outside the Department of the Navy;
       (7) include recommendations on educating Federal officials 
     on commercial maritime operations in order to facilitate the 
     identification of security risks posed through commercial 
     maritime transportation operations;
       (8) include recommendations on how private sector resources 
     could be utilized to collect or analyze information, along 
     with a preliminary assessment of the availability and 
     expertise of private sector resources;
       (9) include recommendations on how to disseminate 
     information collected and analyzed through Federal maritime 
     security coordinator while considering the need for 
     nondisclosure of sensitive security information and the 
     maximizing of security through the utilization of State, 
     local, and private security personnel; and
       (10) include recommendations on the need for and how the 
     Department could help support a maritime information sharing 
     and analysis center for the purpose of collecting and 
     disseminating real-time or near real-time information to and 
     from public and private entities, along with recommendations 
     on the appropriate levels of funding to help disseminate 
     maritime security information to the private sector.

     SEC. 4. INTERMODAL CARGO SECURITY PLAN.

       (a) In General.--In addition to the plan submitted under 
     section 3, within 180 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 containing the following:
       (1) Secure systems of transportation.--A plan, along with 
     timelines, for the implementation of section 70116 of title 
     46, United States Code. The plan shall--
       (A) provide an update on current efforts by the Department 
     of Homeland Security to ensure the physical screening or 
     inspection of imported cargo;
       (B) provide a preliminary assessment of resources necessary 
     to evaluate and certify secure systems of transportation, and 
     the resources necessary to validate that the secure systems 
     of transportation are operating in compliance with the 
     certification requirements;
       (C) contain an analysis of the feasibility of establishing 
     a user fee in order to be able to evaluate, certify, and 
     validate secure systems of transportation;
       (D) contain an analysis of the need and feasibility of 
     establishing a system to inspect, monitor, and track 
     intermodal shipping containers within the United States; and
       (E) contain an analysis of the need and feasibility for 
     developing international standards for secure systems of 
     transportation, including recommendations, that includes an 
     examination of working with appropriate international 
     organizations to develop standards to enhance the physical 
     security of shipping containers consistent with the 
     provisions of section 70116 of title 46, United States Code.
       (2) Radiation detectors.--A report on progress in the 
     installation of a system of radiation detection at all major 
     United States seaports, along with a timeline and expected 
     completion date for the system. In the report, the Secretary 
     shall include a preliminary analysis of any issues related to 
     the installation or efficacy of the radiation detection 
     equipment, as well as a cost estimate for completing 
     installation of the system.
       (3) Non-intrusive inspection at foreign ports.--A report--
       (A) on whether and to what extent foreign seaports have 
     been willing to utilize screening equipment at their ports to 
     screen cargo, including the number of cargo containers that 
     have been screened at foreign seaports, and the ports where 
     they were screened;
       (B) indicating which foreign ports may be willing to 
     utilize their screening equipment for cargo exported for 
     import into the United States, and a recommendation as to 
     whether, and to what extent, United States cargo screening 
     equipment will be required to be purchased and stationed at 
     foreign seaports for inspection; and
       (C) indicating ways to increase the effectiveness of the 
     targeting and screening activities of United States Customs 
     Service inspectors who are stationed outside the United 
     States and to what extent additional resources and program 
     changes will be necessary to maximize scrutiny of cargo in 
     foreign seaports that is destined for the United States.
       (4) Compliance with Security Standard Programs.--A plan to 
     establish, validate, and ensure compliance with security 
     standards that would require ports, terminals, vessel 
     operators, and shippers to adhere to security standards 
     established by or consistent with the National Transportation 
     System Security Plan. The plan shall indicate what resources 
     will be utilized, and how they would be utilized, to ensure 
     that companies operate in compliance with security standards.
       (b) Inspector General Implementation Report.--One year 
     after the date on which the plan described in subsection 
     (a)(1) is submitted to the Committees, the Inspector General 
     of the Department of Homeland Security shall transmit a 
     report to those Committees evaluating the progress made by 
     the Department in implementing the plan.
       (c) Evaluation of Cargo Inspection Targeting System for 
     International Intermodal Cargo Containers.--
       (1) In general.--Within 6 months after the date of 
     enactment of this Act, and annually thereafter, the Inspector 
     General of the Department of Homeland Security shall evaluate 
     the system used by the Department to target international 
     intermodal containers for inspection and report the results 
     of the evaluation to the Senate Committee on Commerce, 
     Science, and Transportation and the House of Representatives 
     Committee on Transportation and Infrastructure. In conducting 
     the evaluation, the Inspector General shall assess--
       (A) the effectiveness of the current tracking system to 
     determine whether it is adequate to prevent international 
     intermodal containers from being used for purposes of 
     terrorism;
       (B) the sources of information, and the quality of the 
     information at the time of reporting, used by the system to 
     determine whether targeting information is collected from the 
     best and most credible sources and evaluate data sources to 
     determine information gaps and weaknesses;
       (C) the targeting system for reporting and analyzing 
     inspection statistics, as well as testing effectiveness;
       (D) the competence and training of employees operating the 
     system to determine whether they are sufficiently capable to 
     detect potential terrorist threats; and
       (E) whether the system is an effective system to detect 
     potential acts of terrorism and whether additional steps need 
     to be taken in order to remedy deficiencies in targeting 
     international intermodal containers for inspection.
       (2) Increase in inspections.--If the Inspector General 
     determines in any of the reports required by paragraph (1) 
     that the targeting system is insufficiently effective as a 
     means of detecting potential acts of terrorism utilizing 
     international intermodal containers, then within 12 months 
     after that report, the Secretary of Homeland Security shall 
     double the number of containers subjected to intrusive or 
     non-intrusive inspection at United States ports or to be 
     shipped to the United States at foreign seaports.
       (d) Report and Plan Formats.--The Secretary and the 
     Inspector General may submit any plan or report required by 
     this section in both classified and redacted formats if the 
     Secretary determines that it is appropriate or necessary.

     SEC. 5. JOINT OPERATIONS CENTER FOR PORT SECURITY.

       The Commandant of the United States Coast Guard shall 
     report to Congress, within 180 days

[[Page 18774]]

     after the date of enactment of this Act, on the potential 
     benefits of establishing joint operational centers for port 
     security at certain United States seaports. The report shall 
     consider the 3 Joint Operational Centers that have been 
     established at Norfolk, Charleston, San Diego, and elsewhere 
     and compare and contrast their composition and operational 
     characteristics. The report shall consider--
       (1) whether it would be beneficial to establish linkages to 
     Federal maritime information systems established pursuant to 
     section 70113 of title 46, United States Code;
       (2) whether the operational centers could be beneficially 
     utilized to track vessel movements under sections 70114 and 
     70115 of title 46, United States Code;
       (3) whether the operational centers could be beneficial in 
     the facilitation of intermodal cargo security programs such 
     as the secure systems of transportation program;
       (4) the extent to which such operational centers could be 
     beneficial in the operation of maritime area security plans 
     and maritime area contingency response plans and in 
     coordinating the port security activities of Federal, State, 
     and local officials; and
       (5) include recommendations for the number of centers and 
     their possible location, as well as preliminary cost 
     estimates for the operation of the centers.

     SEC. 6. MARITIME TRANSPORTATION SECURITY PLAN GRANTS.

       Section 70107(a) of title 46, United States Code, is 
     amended to read as follows:
       ``(a) In General.--The Under Secretary of Homeland Security 
     for Border and Transportation Security shall establish a 
     grant program for making a fair and equitable allocation of 
     funds to implement Area Maritime Transportation Security 
     Plans and to help fund compliance with Federal security plans 
     among port authorities, facility operators, and State and 
     local agencies required to provide security services. Grants 
     shall be made on the basis of the need to address 
     vulnerabilities in security subject to review and comment by 
     the appropriate Federal Maritime Security Coordinators and 
     the Maritime Administration. The grant program shall take 
     into account national economic and strategic defense concerns 
     and shall be coordinated with the Director of the Office of 
     Domestic Preparedness to ensure that the grant process is 
     consistent with other Department of Homeland Security grant 
     programs.''.

     SEC. 7. ASSISTANCE FOR FOREIGN PORTS.

       (a) In General.--Section 70109 of title 46, United States 
     Code, is amended--
       (1) by striking ``The Secretary,'' in subsection (b) and 
     inserting ``The Administrator of the Maritime 
     Administration,''; and
       (2) by adding at the end the following:
       ``(c) Foreign Assistance Programs.--The Administrator of 
     the Maritime Administration, in coordination with the 
     Secretary of State, shall identify foreign assistance 
     programs that could facilitate implementation of port 
     security antiterrorism measures in foreign countries. The 
     Administrator and the Secretary shall establish a program to 
     utilize those programs that are capable of implementing port 
     security antiterrorism measures at ports in foreign countries 
     that the Secretary finds, under section 70108, to lack 
     effective antiterrorism measures.''.
       (b) Report on Security at Ports in the Caribbean Basin.--
     Not later than 60 days after the date of enactment of this 
     Act, the Secretary of Homeland Security shall submit to the 
     Committee on Commerce, Science, and Transportation of the 
     Senate and Committee on Transportation and Infrastructure of 
     the House of Representatives a report on the security of 
     ports in the Caribbean Basin. The report shall include the 
     following:
       (1) An assessment of the effectiveness of the measures 
     employed to improve security at ports in the Caribbean Basin 
     and recommendations for any additional measures to improve 
     such security.
       (2) An estimate of the number of ports in the Caribbean 
     Basin that will not be secured by July 2004, and an estimate 
     of the financial impact in the United States of any action 
     taken pursuant to section 70110 of title 46, United States 
     Code, that affects trade between such ports and the United 
     States.
       (3) An assessment of the additional resources and program 
     changes that are necessary to maximize security at ports in 
     the Caribbean Basin.

     SEC. 8. FEDERAL AND STATE COMMERCIAL MARITIME TRANSPORTATION 
                   TRAINING.

       Section 109 of the Maritime Transportation Security Act of 
     2002 (46 U.S.C. 70101 note) is amended--
       (1) by redesignating subsections (c) through (f) as 
     subsections (d) through (g), respectively; and
       (2) by inserting after subsection (b) the following:
       ``(c) Federal and State Commercial Maritime Transportation 
     Training.--The Secretary of Transportation shall establish a 
     curriculum, to be incorporated into the curriculum developed 
     under subsection (a)(1), to educate and instruct Federal and 
     State officials on commercial maritime and intermodal 
     transportation. The curriculum shall be designed to 
     familiarize those officials with commercial maritime 
     transportation in order to facilitate performance of their 
     commercial maritime and intermodal transportation security 
     responsibilities. In developing the standards for the 
     curriculum, the Secretary shall consult with each agency in 
     the Department of Homeland Security with maritime security 
     responsibilities to determine areas of educational need. The 
     Secretary shall also coordinate with the Federal Law 
     Enforcement Training Center in the development of the 
     curriculum and the provision of training opportunities for 
     Federal and State law enforcement officials at appropriate 
     law enforcement training facilities.''.

     SEC. 9. RESEARCH AND DEVELOPMENT.

       (a) In General.--Section 70107 of title 46, United States 
     Code, is amended by striking subsection (i) and inserting the 
     following:
       ``(i) Research and Development.--
       ``(1) In general.--As part of the research and development 
     program within the Science and Technology directorate, the 
     Secretary of Homeland Security shall conduct investigations, 
     fund pilot programs, award grants, and otherwise conduct 
     research and development across the various portfolios 
     focused on making United States ports safer and more secure. 
     Research conducted under this subsection may include--
       ``(A) methods or programs to increase the ability to target 
     for inspection vessels, cargo, crewmembers, or passengers 
     that will arrive or have arrived at any port or place in the 
     United States;
       ``(B) equipment to detect accurately explosives, chemical, 
     or biological agents that could be used to commit terrorist 
     acts against the United States;
       ``(C) equipment to detect accurately nuclear or 
     radiological materials, including scintillation-based 
     detection equipment capable of signalling the presence of 
     nuclear or radiological materials;
       ``(D) improved tags and seals designed for use on shipping 
     containers to track the transportation of the merchandise in 
     such containers, including `smart sensors' that are able to 
     track a container throughout its entire supply chain, detect 
     hazardous and radioactive materials within that container, 
     and transmit that information to the appropriate law 
     enforcement authorities;
       ``(E) tools, including the use of satellite tracking 
     systems, to increase the awareness of maritime areas and to 
     identify potential terrorist threats that could have an 
     impact on facilities, vessels, and infrastructure on or 
     adjacent to navigable waterways, including underwater access;
       ``(F) tools to mitigate the consequences of a terrorist act 
     on, adjacent to, or under navigable waters of the United 
     States, including sensor equipment, and other tools to help 
     coordinate effective response to a terrorist action;
       ``(G) applications to apply existing technologies from 
     other areas or industries to increase overall port security; 
     and
       ``(H) improved container design, including blast-resistant 
     containers.
       ``(2) Implementation of technology.--
       ``(A) In general.--In conjunction with ongoing efforts to 
     improve security at United States ports, the Director of the 
     Science and Technology Directorate, in consultation with 
     other Department of Homeland Security agencies with 
     responsibility for port security, may conduct pilot projects 
     at United States ports to test the effectiveness and 
     applicability of new port security projects, including--
       ``(i) testing of new detection and screening technologies;
       ``(ii) projects to protect United States ports and 
     infrastructure on or adjacent to the navigable waters of the 
     United States, including underwater access; and
       ``(iii) tools for responding to a terrorist threat or 
     incident at United States ports and infrastructure on or 
     adjacent to the navigable waters of the United States, 
     including underwater access.
       ``(B) Authorization of appropriations.--There are 
     authorized to be appropriated to the Secretary of Homeland 
     Security $35,000,000 for each of fiscal years 2005 through 
     2009 to carry out pilot projects under subparagraph (A).
       ``(3) Administrative provisions.--
       ``(A) No duplication of effort.--Before making any grant, 
     the Secretary of Homeland Security shall coordinate with 
     other Federal agencies to ensure the grant will not be used 
     for research and development that is already being conducted 
     with Federal funding.
       ``(B) Accounting.--The Secretary of Homeland Security shall 
     by regulation establish accounting, reporting, and review 
     procedures to ensure that funds made available under 
     paragraph (1) are used for the purpose for which they were 
     made available, that all expenditures are properly accounted 
     for, and that amounts not used for such purposes and amounts 
     not expended are recovered.
       ``(C) Recordkeeping.--Recipients of grants shall keep all 
     records related to expenditures and obligations of funds 
     provided under paragraph (1) and make them available upon 
     request to the Inspector General of the Department of 
     Homeland Security and the Secretary of Homeland Security for 
     audit and examination.''.
       (b) Annual Report.--Within 30 days after the beginning of 
     each fiscal year from fiscal year 2005 through fiscal year 
     2009, the Director of the Science and Technology Directorate 
     shall submit a report describing its research that can be 
     applied to port security to the Senate Committee on Commerce, 
     Science, and Transportation, the House of Representatives 
     Committee on Science, and the House of Representatives Select 
     Committee on Homeland Security. The report shall--
       (1) describe any port security-related research, including 
     grants and pilot projects, that were conducted in the 
     preceding fiscal year;
       (2) describe the amount of Department of Homeland Security 
     resources dedicated to research that can be applied to port 
     security;

[[Page 18775]]

       (3) describe the steps taken to coordinate with other 
     agencies within the Department to ensure that research 
     efforts are coordinated with port security efforts;
       (4) describe how the results of the Department's research, 
     as well as port security related research of the Department 
     of Defense, will be implemented in the field, including 
     predicted timetables;
       (5) lay out the plans for research in the current fiscal 
     year; and
       (6) include a description of the funding levels for the 
     research in the preceding, current, and next fiscal years.

     SEC. 10. NUCLEAR FACILITIES IN MARITIME AREAS.

       (a) Waterways.--Section 70103(b) is amended by adding at 
     the end thereof the following:
       ``(5) Waterways located near nuclear facilities.--
       ``(A) Identification and security evaluation.--The 
     Secretary shall--
       ``(i) identify all nuclear facilities on, adjacent to, or 
     in close proximity to navigable waterways that might be 
     damaged by a transportation security incident; and
       ``(ii) in coordination with the Secretary of Energy, 
     evaluate the security plans of each such nuclear facility for 
     its adequacy to protect the facility from damage or 
     disruption from a transportation security incident 
     originating in the navigable waterway, including threats 
     posed by navigation, underwater access, and the introduction 
     of harmful substances into water coolant systems.
       ``(B) Rectification of deficiencies.--The Secretary, in 
     coordination with the Secretary of Energy, shall take such 
     steps as may be necessary or appropriate to correct any 
     deficiencies in security identified in the evaluations 
     conducted under subparagraph (A).
       ``(C) Report.--As soon as practicable after completion of 
     the evaluation under subparagraph (A), the Secretary shall 
     transmit a report, in both classified and redacted format, to 
     the Senate Committee on Commerce, Science, and 
     Transportation, the House of Representatives Committee on 
     Transportation and Infrastructure, and the House of 
     Representatives Select Committee on Homeland Security--
       ``(i) describing the results of the identification and 
     evaluation required by subparagraph (A);
       ``(ii) describing the actions taken under subparagraph (B); 
     and
       ``(iii) evaluating the technology utilized in the 
     protection of nuclear facilities (including any such 
     technology under development).''.
       (b) Vessels.--Section 70103(c)(3) of title 46, United 
     States Code, is amended--
       (1) by striking ``and'' after the semicolon in subparagraph 
     (F);
       (2) by striking ``facility.'' in subparagraph (G) and 
     inserting ``facility; and''; and
       (3) by adding at the end the following:
       ``(H) establish a requirement, coordinated with the 
     Department of Energy, for criminal background checks of all 
     United States and foreign seamen employed on vessels 
     transporting nuclear materials in the navigable waters of the 
     United States.''.

     SEC. 11. TRANSPORTATION WORKER BACKGROUND INVESTIGATION 
                   PROGRAMS.

       Within 120 days after the date of enactment of this Act, 
     the Secretary of Homeland Security, after consultation with 
     the Secretary of Transportation, shall transmit a report to 
     the Senate Committee on Commerce, Science, and Transportation 
     and the House of Representatives Committee on Transportation 
     and Infrastructure--
       (1) making recommendations (including legislative 
     recommendations, if appropriate or necessary) for 
     harmonizing, combining, or coordinating requirements, 
     procedures, and programs for conducting background checks 
     under section 70105 of title 46, United States Code, section 
     5103a(c) of title 49, United States Code, section 44936 of 
     title 49, United States Code, and other provisions of Federal 
     law or regulations requiring background checks for 
     individuals engaged in transportation or transportation-
     related activities;
       (2) setting forth a detailed timeline for implementation of 
     such harmonization, combination, or coordination;
       (3) setting forth a plan with a detailed timeline for the 
     implementation of the Transportation Worker Identification 
     Credential in seaports;
       (4) making recommendations for a waiver and appeals process 
     for issuing a transportation security card to an individual 
     found otherwise ineligible for such a card under section 
     70105(c)(2) and (3) of title 46, United States Code, along 
     with recommendations on the appropriate level of funding for 
     such a process; and
       (5) making recommendations for how information collected 
     through the Transportation Worker Identification Credential 
     program may be shared with port officials, terminal 
     operators, and other officials responsible for maintaining 
     access control while also protecting workers' privacy.

     SEC. 12. REPORT ON CRUISE SHIP SECURITY.

       (a) In General.--Not later than 120 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 on the security 
     of ships and facilities used in the cruise line industry.
       (b) Content.--The report required by subsection (a) shall 
     include an assessment of security measures employed by the 
     cruise line industry, including the following:
       (1) An assessment of the security of cruise ships that 
     originate at ports in foreign countries.
       (2) An assessment of the security of ports utilized for 
     cruise ship docking.
       (3) The costs incurred by the cruise line industry to carry 
     out the measures required by the Maritime Transportation 
     Security Act of 2002 (Public Law 107-295; 116 Stat. 2064) and 
     the amendments made by that Act.
       (4) The costs of employing canine units and hand-held 
     explosive detection wands at ports, including the costs of 
     screening passengers and baggage with such methods.
       (5) An assessment of security measures taken by the 
     Secretary of Homeland Security to increase the security of 
     the cruise line industry and the costs incurred to carry out 
     such security measures.
       (6) A description of the need for and the feasibility of 
     deploying explosive detection systems and canine units at 
     ports used by cruise ships and an assessment of the cost of 
     such deployment.
       (7) A summary of the fees paid by passengers of cruise 
     ships that are used for inspections and the feasibility of 
     creating a dedicated passenger vessel security fund from such 
     fees.
       (8) The recommendations of the Secretary, if any, for 
     measures that should be carried out to improve security of 
     cruise ships that originate at ports in foreign countries.
       (9) The recommendations of the Secretary, if any, on the 
     deployment of further measures to improve the security of 
     cruise ships, including explosive detection systems, canine 
     units, and the use of technology to improve baggage 
     screening, and an assessment of the cost of implementing such 
     measures.

     SEC. 13. REPORT ON DESIGN OF MARITIME SECURITY GRANT 
                   PROGRAMS.

       Within 90 days after the date of enactment of this Act, the 
     Secretary of Homeland Security shall transmit a report to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Transportation and 
     Infrastructure on the design of maritime security grant 
     programs that includes recommendations on--
       (1) whether the grant programs should be discretionary or 
     formula based and why;
       (2) requirements for ensuring that Federal funds will not 
     be substituted for grantee funds;
       (3) targeting requirements to ensure that funding is 
     directed in a manner that reflects a national, risk-based 
     perspective on priority needs, the fiscal capacity of 
     recipients to fund the improvements without grant funds, and 
     an explicit analysis of the impact of minimum funding to 
     small ports that could affect funding available for the most 
     strategic or economically important ports; and
       (4) matching requirements to ensure that Federal funds 
     provide an incentive to grantees for the investment of their 
     own funds in the improvements financed in part by Federal 
     funds.

  Mr. McCONNELL. Mr. President, I ask unanimous consent that the 
Hollings amendment at the desk be agreed to, the Committee-reported 
substitute, as amended, be agreed to, the bill, as amended, be read the 
third time and passed, the motion to reconsider be laid upon the table, 
and any statements be printed in the Record as if read.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 3669) was agreed to.
  (The amendment is printed in today's Record under ``Text of 
Amendments.'')
  The committee amendment in the nature of a substitute, as amended, 
was agreed to.
  The bill (S. 2279), as amended, was read the third time and passed, 
as follows:

                                S. 2279

       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 ``Maritime 
     Transportation Security Act of 2004''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents
Sec. 2. Enforcement; pier and wharf security costs.
Sec. 3. Security at foreign ports.
Sec. 4. Federal and State commercial maritime transportation training.
Sec. 5. Transportation worker background investigation programs.
Sec. 6. Report on cruise ship security.
Sec. 7. Maritime transportation security plan grants.
Sec. 8. Report on design of maritime security grant programs.

     SEC. 2. ENFORCEMENT; PIER AND WHARF SECURITY COSTS.

       (a) In General.--Chapter 701 of title 46, United States 
     Code, is amended--
       (1) by redesignating the second section 70118 (relating to 
     firearms, arrests, and seizure of property), as added by 
     section 801(a) of the Coast Guard and Maritime Transportation 
     Act of 2004, as section 70119;
       (2) by redesignating the first section 70119 (relating to 
     enforcement by State and local officers), as added by section 
     801(a) of the

[[Page 18776]]

     Coast Guard and Maritime Transportation Act of 2004, as 
     section 70120;
       (3) by redesignating the second section 70119 (relating to 
     civil penalty), as redesignated by section 802(a)(1) of the 
     Coast Guard and Maritime Transportation Act of 2004, as 
     section 70123; and
       (4) by inserting after section 70120 the following:

     ``Sec. 70121. Enforcement by injunction or withholding of 
       clearance

       ``(a) Injunction.--The United States district courts shall 
     have jurisdiction to restrain violations of this chapter or 
     of regulations issued hereunder, for cause shown.
       ``(b) Withholding of Clearance.--
       ``(1) If any owner, agent, master, officer, or person in 
     charge of a vessel is liable for a penalty or fine under 
     section 70119, or if reasonable cause exists to believe that 
     the owner, agent, master, officer, or person in charge may be 
     subject to a penalty under section 70119, the Secretary may, 
     with respect to such vessel, refuse or revoke any clearance 
     required by section 4197 of the Revised Statutes of the 
     United States (46 U.S.C. App. 91).
       ``(2) Clearance refused or revoked under this subsection 
     may be granted upon filing of a bond or other surety 
     satisfactory to the Secretary.

     ``Sec. 70122. Security of piers and wharfs

       ``(a) In General.--Notwithstanding any other provision of 
     law, the Secretary shall require any uncleared, imported 
     merchandise remaining on the wharf or pier onto which it was 
     unladen for more than 7 calendar days, not including any time 
     the imported merchandise was held in federal custody, to be 
     removed from the wharf or pier and deposited in the public 
     stores or a general order warehouse, where it shall be 
     inspected for determination of contents, and thereafter a 
     permit for its delivery may be granted.
       ``(b) Penalty.--The Secretary may impose an administrative 
     penalty of $5,000 on the consignee for each bill of lading 
     for general order merchandise remaining on a wharf or pier in 
     violation of subsection (a), except that no penalty shall be 
     imposed if the violation was a result of force majeure.''.
       (b) Conforming Amendments.--
       (1) The chapter analysis for chapter 701 of title 46, 
     United States Code, is amended by striking the items 
     following the item relating to section 70116 and inserting 
     the following:

``70117. In rem liability for civil penalties and certain costs
``70118. Withholding of clearance
``70119. Firearms, arrests, and seizure of property
``70120. Enforcement by State and local officers
``70121. Enforcement by injunction or withholding of clearance
``70122. Security of piers and wharfs
``70123. Civil penalty''.
       (2) Section 70117(a) of title 46, United States Code, is 
     amended by striking ``section 70120'' and inserting ``section 
     70123''.
       (3) Section 70118(a) of such title is amended by striking 
     ``under section 70120,'' and inserting ``under that 
     section,''.

     SEC. 3. SECURITY AT FOREIGN PORTS.

       (a) In General.--Section 70109 of title 46, United States 
     Code, is amended--
       (1) by striking ``The Secretary,'' in subsection (b) and 
     inserting ``The Administrator of the Maritime 
     Administration,''; and
       (2) by adding at the end the following:
       ``(c) Foreign Assistance Programs.--The Administrator of 
     the Maritime Administration, in coordination with the 
     Secretary of State, shall identify foreign assistance 
     programs that could facilitate implementation of port 
     security antiterrorism measures in foreign countries. The 
     Administrator and the Secretary shall establish a program to 
     utilize those programs that are capable of implementing port 
     security antiterrorism measures at ports in foreign countries 
     that the Secretary finds, under section 70108, to lack 
     effective antiterrorism measures.''.
       (b) Report on Security at Ports in the Caribbean Basin.--
     Not later than 60 days after the date of enactment of this 
     Act, the Secretary of Homeland Security shall submit to the 
     Committee on Commerce, Science, and Transportation of the 
     Senate and Committee on Transportation and Infrastructure of 
     the House of Representatives a report on the security of 
     ports in the Caribbean Basin. The report shall include the 
     following:
       (1) An assessment of the effectiveness of the measures 
     employed to improve security at ports in the Caribbean Basin 
     and recommendations for any additional measures to improve 
     such security.
       (2) An estimate of the number of ports in the Caribbean 
     Basin that will not be secured by July 2004, and an estimate 
     of the financial impact in the United States of any action 
     taken pursuant to section 70110 of title 46, United States 
     Code, that affects trade between such ports and the United 
     States.
       (3) An assessment of the additional resources and program 
     changes that are necessary to maximize security at ports in 
     the Caribbean Basin.

     SEC. 4. FEDERAL AND STATE COMMERCIAL MARITIME TRANSPORTATION 
                   TRAINING.

       Section 109 of the Maritime Transportation Security Act of 
     2002 (46 U.S.C. 70101 note) is amended--
       (1) by redesignating subsections (c) through (f) as 
     subsections (d) through (g), respectively; and
       (2) by inserting after subsection (b) the following:
       ``(c) Federal and State Commercial Maritime Transportation 
     Training.--The Secretary of Transportation shall establish a 
     curriculum, to be incorporated into the curriculum developed 
     under subsection (a)(1), to educate and instruct Federal and 
     State officials on commercial maritime and intermodal 
     transportation. The curriculum shall be designed to 
     familiarize those officials with commercial maritime 
     transportation in order to facilitate performance of their 
     commercial maritime and intermodal transportation security 
     responsibilities. In developing the standards for the 
     curriculum, the Secretary shall consult with each agency in 
     the Department of Homeland Security with maritime security 
     responsibilities to determine areas of educational need. The 
     Secretary shall also coordinate with the Federal Law 
     Enforcement Training Center in the development of the 
     curriculum and the provision of training opportunities for 
     Federal and State law enforcement officials at appropriate 
     law enforcement training facilities.''.

     SEC. 5. TRANSPORTATION WORKER BACKGROUND INVESTIGATION 
                   PROGRAMS.

       Within 120 days after the date of enactment of this Act, 
     the Secretary of Homeland Security, after consultation with 
     the Secretary of Transportation, shall transmit a report to 
     the Senate Committee on Commerce, Science, and Transportation 
     and the House of Representatives Committee on Transportation 
     and Infrastructure--
       (1) making recommendations (including legislative 
     recommendations, if appropriate or necessary) for 
     harmonizing, combining, or coordinating requirements, 
     procedures, and programs for conducting background checks 
     under section 70105 of title 46, United States Code, section 
     5103a(c) of title 49, United States Code, section 44936 of 
     title 49, United States Code, and other provisions of Federal 
     law or regulations requiring background checks for 
     individuals engaged in transportation or transportation-
     related activities;
       (2) setting forth a detailed timeline for implementation of 
     such harmonization, combination, or coordination;
       (3) setting forth a plan with a detailed timeline for the 
     implementation of the Transportation Worker Identification 
     Credential in seaports;
       (4) making recommendations for a waiver and appeals process 
     for issuing a transportation security card to an individual 
     found otherwise ineligible for such a card under section 
     70105(c)(2) and (3) of title 46, United States Code, along 
     with recommendations on the appropriate level of funding for 
     such a process; and
       (5) making recommendations for how information collected 
     through the Transportation Worker Identification Credential 
     program may be shared with port officials, terminal 
     operators, and other officials responsible for maintaining 
     access control while also protecting workers' privacy.

     SEC. 6. REPORT ON CRUISE SHIP SECURITY.

       (a) In General.--Not later than 120 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 on the security 
     of ships and facilities used in the cruise line industry.
       (b) Content.--The report required by subsection (a) shall 
     include an assessment of security measures employed by the 
     cruise line industry, including the following:
       (1) An assessment of the security of cruise ships that 
     originate at ports in foreign countries.
       (2) An assessment of the security of ports utilized for 
     cruise ship docking.
       (3) The costs incurred by the cruise line industry to carry 
     out the measures required by the Maritime Transportation 
     Security Act of 2002 (Public Law 107-295; 116 Stat. 2064) and 
     the amendments made by that Act.
       (4) The costs of employing canine units and hand-held 
     explosive detection wands at ports, including the costs of 
     screening passengers and baggage with such methods.
       (5) An assessment of security measures taken by the 
     Secretary of Homeland Security to increase the security of 
     the cruise line industry and the costs incurred to carry out 
     such security measures.
       (6) A description of the need for and the feasibility of 
     deploying explosive detection systems and canine units at 
     ports used by cruise ships and an assessment of the cost of 
     such deployment.
       (7) A summary of the fees paid by passengers of cruise 
     ships that are used for inspections and the feasibility of 
     creating a dedicated passenger vessel security fund from such 
     fees.
       (8) The recommendations of the Secretary, if any, for 
     measures that should be carried out to improve security of 
     cruise ships that originate at ports in foreign countries.
       (9) The recommendations of the Secretary, if any, on the 
     deployment of further measures to improve the security of 
     cruise ships,

[[Page 18777]]

     including explosive detection systems, canine units, and the 
     use of technology to improve baggage screening, and an 
     assessment of the cost of implementing such measures.

     SEC. 7. MARITIME TRANSPORTATION SECURITY PLAN GRANTS.

       Section 70107(a) of title 46, United States Code, is 
     amended to read as follows:
       ``(a) In General.--The Under Secretary of Homeland Security 
     for Border and Transportation Security shall establish a 
     grant program for making a fair and equitable allocation of 
     funds to implement Area Maritime Transportation Security 
     Plans and to help fund compliance with Federal security plans 
     among port authorities, facility operators, and State and 
     local agencies required to provide security services. Grants 
     shall be made on the basis of threat-based risk assessments 
     subject to review and comment by the appropriate Federal 
     Maritime Security Coordinators and the Maritime 
     Administration. The grant program shall take into account 
     national security priorities, national economic, and 
     strategic defense concerns and shall be coordinated with the 
     Director of the Office of Domestic Preparedness to ensure 
     that the grant process is consistent with other Department of 
     Homeland Security grant programs.''.

     SEC. 8. REPORT ON DESIGN OF MARITIME SECURITY GRANT PROGRAMS.

       Within 90 days after the date of enactment of this Act, the 
     Secretary of Homeland Security shall transmit a report to the 
     Senate Committee on Commerce, Science, and Transportation and 
     the House of Representatives Committee on Transportation and 
     Infrastructure on the design of maritime security grant 
     programs that includes recommendations on--
       (1) whether the grant programs should be discretionary or 
     formula based and why;
       (2) requirements for ensuring that Federal funds will not 
     be substituted for grantee funds;
       (3) targeting requirements to ensure that funding is 
     directed in a manner that reflects a national, risk-based 
     perspective on priority needs, the fiscal capacity of 
     recipients to fund the improvements without grant funds, and 
     an explicit analysis of the impact of minimum funding to 
     small ports that could affect funding available for the most 
     strategic or economically important ports; and
       (4) matching requirements to ensure that Federal funds 
     provide an incentive to grantees for the investment of their 
     own funds in the improvements financed in part by Federal 
     funds.

                          ____________________