[Congressional Record (Bound Edition), Volume 152 (2006), Part 16]
[House]
[Pages 21299-21330]
[From the U.S. Government Publishing Office, www.gpo.gov]


             CONFERENCE REPORT ON H.R. 4954, SAFE PORT ACT

  Mr. KING of New York submitted the following conference report and 
statement on the bill (H.R. 4954) to improve maritime and cargo 
security through enhanced layered defenses, and for other purposes:

                  Conference Report (H. Rept. 109-711)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     4954), to improve maritime and cargo security through 
     enhanced layered defenses, and for other purposes, having 
     met, after full and free conference, have agreed to recommend 
     and do recommend to their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Security 
     and Accountability For Every Port Act of 2006'' or the ``SAFE 
     Port Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

[[Page 21300]]

              TITLE I--SECURITY OF UNITED STATES SEAPORTS

                     Subtitle A--General Provisions

Sec. 101. Area Maritime Transportation Security Plan to include salvage 
              response plan.
Sec. 102. Requirements relating to maritime facility security plans.
Sec. 103. Unannounced inspections of maritime facilities.
Sec. 104. Transportation security card.
Sec. 105. Study to identify redundant background records checks.
Sec. 106. Prohibition of issuance of transportation security cards to 
              persons convicted of certain felonies.
Sec. 107. Long-range vessel tracking.
Sec. 108. Establishment of interagency operational centers for port 
              security.
Sec. 109. Notice of arrival for foreign vessels on the Outer 
              Continental Shelf.
Sec. 110. Enhanced crewmember identification.

    Subtitle B--Port Security Grants; Training and Exercise Programs

Sec. 111. Risk assessment tool.
Sec. 112. Port security grants.
Sec. 113. Port Security Training Program.
Sec. 114. Port Security Exercise Program.
Sec. 115. Facility exercise requirements.

                      Subtitle C--Port Operations

Sec. 121. Domestic radiation detection and imaging.
Sec. 122. Inspection of car ferries entering from abroad.
Sec. 123. Random searches of containers.
Sec. 124. Work stoppages and employee-employer disputes.
Sec. 125. Threat assessment screening of port truck drivers.
Sec. 126. Border Patrol unit for United States Virgin Islands.
Sec. 127. Report on arrival and departure manifests for certain 
              commercial vessels in the United States Virgin Islands.
Sec. 128. Center of Excellence for Maritime Domain Awareness.

          TITLE II--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN

                     Subtitle A--General Provisions

Sec. 201. Strategic plan to enhance the security of the international 
              supply chain.
Sec. 202. Post-incident resumption of trade.
Sec. 203. Automated Targeting System.
Sec. 204. Container security standards and procedures.
Sec. 205. Container Security Initiative.

        Subtitle B--Customs-Trade Partnership Against Terrorism

Sec. 211. Establishment.
Sec. 212. Eligible entities.
Sec. 213. Minimum requirements.
Sec. 214. Tier 1 participants in C-TPAT.
Sec. 215. Tier 2 participants in C-TPAT.
Sec. 216. Tier 3 participants in C-TPAT.
Sec. 217. Consequences for lack of compliance.
Sec. 218. Third party validations.
Sec. 219. Revalidation.
Sec. 220. Noncontainerized cargo.
Sec. 221. C-TPAT program management.
Sec. 222. Additional personnel.
Sec. 223. Authorization of appropriations.

                  Subtitle C--Miscellaneous Provisions

Sec. 231. Pilot integrated scanning system.
Sec. 232. Screening and scanning of cargo containers.
Sec. 233. International cooperation and coordination.
Sec. 234. Foreign port assessments.
Sec. 235. Pilot program to improve the security of empty containers.
Sec. 236. Information sharing relating to supply chain security 
              cooperation.

                       TITLE III--ADMINISTRATION

Sec. 301. Office of Cargo Security Policy.
Sec. 302. Reauthorization of Homeland Security Science and Technology 
              Advisory Committee.
Sec. 303. Research, development, test, and evaluation efforts in 
              furtherance of maritime and cargo security.

                TITLE IV--AGENCY RESOURCES AND OVERSIGHT

Sec. 401. Trade and customs revenue functions of the department.
Sec. 402. Office of international trade; oversight.
Sec. 403. Resources.
Sec. 404. Negotiations.
Sec. 405. International Trade Data System.
Sec. 406. In-bond cargo.
Sec. 407. Sense of the Senate.

               TITLE V--DOMESTIC NUCLEAR DETECTION OFFICE

Sec. 501. Establishment of Domestic Nuclear Detection Office.
Sec. 502. Technology research and development investment strategy for 
              nuclear and radiological detection.

               TITLE VI--COMMERCIAL MOBILE SERVICE ALERTS

Sec. 601. Short title.
Sec. 602. Federal Communications Commission duties.
Sec. 603. Commercial Mobile Service Alert Advisory Committee.
Sec. 604. Research and development.
Sec. 605. Grant program for remote community alert systems.
Sec. 606. Funding.
Sec. 607. Essential services disaster assistance.
Sec. 608. Community disaster loans.
Sec. 609. Public facilities.
Sec. 610. Expedited payments.
Sec. 611. Use of local contracting.
Sec. 612. FEMA programs.
Sec. 613. Homeland security definition.

                        TITLE VII--OTHER MATTERS

Sec. 701. Security plan for essential air service and small community 
              airports.
Sec. 702. Disclosures regarding homeland security grants.
Sec. 703. Trucking security.
Sec. 704. Air and Marine Operations of the Northern Border Air Wing.
Sec. 705. Phaseout of vessels supporting oil and gas development.
Sec. 706. Coast Guard property in Portland, Maine.
Sec. 707. Methamphetamine and methamphetamine precursor chemicals.
Sec. 708. Aircraft charter customer and lessee prescreening program.
Sec. 709. Protection of health and safety during disasters.

           TITLE VIII--UNLAWFUL INTERNET GAMBLING ENFORCEMENT

Sec. 801. Short title.
Sec. 802. Prohibition on acceptance of any payment instrument for 
              unlawful Internet gambling.
Sec. 803. Internet gambling in or through foreign jurisdictions.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Appropriate congressional committees.--Except as 
     otherwise provided, the term ``appropriate congressional 
     committees'' means--
       (A) the Committee on Appropriations of the Senate;
       (B) the Committee on Commerce, Science, and Transportation 
     of the Senate;
       (C) the Committee on Finance of the Senate;
       (D) the Committee on Homeland Security and Governmental 
     Affairs of the Senate;
       (E) the Committee on Appropriations of the House of 
     Representatives;
       (F) the Committee on Homeland Security of the House of 
     Representatives;
       (G) the Committee on Transportation and Infrastructure of 
     the House of Representatives;
       (H) the Committee on Ways and Means of the House of 
     Representatives; and
       (I) other congressional committees, as appropriate.
       (2)  Commercial operations advisory committee.--The term 
     ``Commercial Operations Advisory Committee'' means the 
     Advisory Committee established pursuant to section 9503(c) of 
     the Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 2071 
     note) or any successor committee.
       (3) Commercial seaport personnel.--The term ``commercial 
     seaport personnel'' includes any person engaged in an 
     activity relating to the loading or unloading of cargo or 
     passengers, the movement or tracking of cargo, the 
     maintenance and repair of intermodal equipment, the operation 
     of cargo-related equipment (whether or not integral to the 
     vessel), and the handling of mooring lines on the dock when a 
     vessel is made fast or let go in the United States.
       (4) Commissioner.--The term ``Commissioner'' means the 
     Commissioner responsible for the United States Customs and 
     Border Protection of the Department of Homeland Security.
       (5) Container.--The term ``container'' has the meaning 
     given the term in the International Convention for Safe 
     Containers, with annexes, done at Geneva, December 2, 1972 
     (29 UST 3707).
       (6) Container security device.--The term ``container 
     security device'' means a device, or system, designed, at a 
     minimum, to identify positively a container, to detect and 
     record the unauthorized intrusion of a container, and to 
     secure a container against tampering throughout the supply 
     chain. Such a device, or system, shall have a low false alarm 
     rate as determined by the Secretary.
       (7) Department.--The term ``Department'' means the 
     Department of Homeland Security.
       (8) Examination.--The term ``examination'' means an 
     inspection of cargo to detect the presence of misdeclared, 
     restricted, or prohibited items that utilizes nonintrusive 
     imaging and detection technology.
       (9) Inspection.--The term ``inspection'' means the 
     comprehensive process used by the United States Customs and 
     Border Protection to assess goods entering the United States 
     to appraise them for duty purposes, to detect the presence of 
     restricted or prohibited items, and to ensure compliance with 
     all applicable laws. The process may include screening, 
     conducting an examination, or conducting a search.
       (10) International supply chain.--The term ``international 
     supply chain'' means the end-to-end process for shipping 
     goods to or from the United States beginning at the point of 
     origin (including manufacturer, supplier, or vendor) through 
     a point of distribution to the destination.
       (11) Radiation detection equipment.--The term ``radiation 
     detection equipment'' means any technology that is capable of 
     detecting or identifying nuclear and radiological material or 
     nuclear and radiological explosive devices.
       (12) Scan.--The term ``scan'' means utilizing nonintrusive 
     imaging equipment, radiation detection equipment, or both, to 
     capture data, including images of a container.
       (13) Screening.--The term ``screening'' means a visual or 
     automated review of information about goods, including 
     manifest or entry documentation accompanying a shipment being 
     imported into the United States, to determine the presence of 
     misdeclared, restricted, or prohibited

[[Page 21301]]

     items and assess the level of threat posed by such cargo.
       (14) Search.--The term ``search'' means an intrusive 
     examination in which a container is opened and its contents 
     are devanned and visually inspected for the presence of 
     misdeclared, restricted, or prohibited items.
       (15) Secretary.--The term ``Secretary'' means the Secretary 
     of Homeland Security.
       (16) Transportation disruption.--The term ``transportation 
     disruption'' means any significant delay, interruption, or 
     stoppage in the flow of trade caused by a natural disaster, 
     heightened threat level, an act of terrorism, or any 
     transportation security incident (as defined in section 
     70101(6) of title 46, United States Code).
       (17) Transportation security incident.--The term 
     ``transportation security incident'' has the meaning given 
     the term in section 70101(6) of title 46, United States Code.

              TITLE I--SECURITY OF UNITED STATES SEAPORTS

                     Subtitle A--General Provisions

     SEC. 101. AREA MARITIME TRANSPORTATION SECURITY PLAN TO 
                   INCLUDE SALVAGE RESPONSE PLAN.

       Section 70103(b)(2) of title 46, United States Code, is 
     amended--
       (1) in subparagraph (E), by striking ``and'' after the 
     semicolon;
       (2) by redesignating subparagraph (F) as subparagraph (G); 
     and
       (3) by inserting after subparagraph (E) the following:
       ``(F) include a salvage response plan--
       ``(i) to identify salvage equipment capable of restoring 
     operational trade capacity; and
       ``(ii) to ensure that the waterways are cleared and the 
     flow of commerce through United States ports is reestablished 
     as efficiently and quickly as possible after a maritime 
     transportation security incident; and''.

     SEC. 102. REQUIREMENTS RELATING TO MARITIME FACILITY SECURITY 
                   PLANS.

       Section 70103(c) of title 46, United States Code, is 
     amended--
       (1) in paragraph (3)--
       (A) in subparagraph (C)(ii), by striking ``facility'' and 
     inserting ``facility, including access by persons engaged in 
     the surface transportation of intermodal containers in or out 
     of a port facility'';
       (B) in subparagraph (F), by striking ``and'' at the end;
       (C) in subparagraph (G), by striking the period at the end 
     and inserting ``; and''; and
       (D) by adding at the end the following:
       ``(H) in the case of a security plan for a facility, be 
     resubmitted for approval of each change in the ownership or 
     operator of the facility that may substantially affect the 
     security of the facility.''; and
       (2) by adding at the end the following:
       ``(8)(A) The Secretary shall require that the qualified 
     individual having full authority to implement security 
     actions for a facility described in paragraph (2) shall be a 
     citizen of the United States.
       ``(B) The Secretary may waive the requirement of 
     subparagraph (A) with respect to an individual if the 
     Secretary determines that it is appropriate to do so based on 
     a complete background check of the individual and a review of 
     all terrorist watch lists to ensure that the individual is 
     not identified on any such terrorist watch list.''.

     SEC. 103. UNANNOUNCED INSPECTIONS OF MARITIME FACILITIES.

       Section 70103(c)(4)(D) of title 46, United States Code, is 
     amended to read as follows:
       ``(D) subject to the availability of appropriations, verify 
     the effectiveness of each such facility security plan 
     periodically, but not less than 2 times per year, at least 1 
     of which shall be an inspection of the facility that is 
     conducted without notice to the facility.''.

     SEC. 104. TRANSPORTATION SECURITY CARD.

       (a) In General.--Section 70105 of title 46, United States 
     Code, is amended by adding at the end the following:
       ``(g) Applications for Merchant Mariners' Documents.--The 
     Assistant Secretary of Homeland Security for the 
     Transportation Security Administration and the Commandant of 
     the Coast Guard shall concurrently process an application 
     from an individual for merchant mariner's documents under 
     chapter 73 of title 46, United States Code, and an 
     application from that individual for a transportation 
     security card under this section.
       ``(h) Fees.--The Secretary shall ensure that the fees 
     charged each individual applying for a transportation 
     security card under this section who has passed a background 
     check under section 5103a(d) of title 49, United States Code, 
     and who has a current hazardous materials endorsement in 
     accordance with section 1572 of title 49, Code of Federal 
     Regulations, and each individual with a current merchant 
     mariners' document who has passed a criminal background check 
     under section 7302(d)--
       ``(1) are for costs associated with the issuance, 
     production, and management of the transportation security 
     card, as determined by the Secretary; and
       ``(2) do not include costs associated with performing a 
     background check for that individual, except for any 
     incremental costs in the event that the scope of such 
     background checks diverge.
       ``(i) Implementation Schedule.--In implementing the 
     transportation security card program under this section, the 
     Secretary shall--
       ``(1) establish a priority for each United States port 
     based on risk, including vulnerabilities assessed under 
     section 70102; and
       ``(2) implement the program, based upon such risk and other 
     factors as determined by the Secretary, at all facilities 
     regulated under this chapter at--
       ``(A) the 10 United States ports that the Secretary 
     designates top priority not later than July 1, 2007;
       ``(B) the 40 United States ports that are next in order of 
     priority to the ports described in subparagraph (A) not later 
     than January 1, 2008; and
       ``(C) all other United States ports not later than January 
     1, 2009.
       ``(j) Transportation Security Card Processing Deadline.--
     Not later than January 1, 2009, the Secretary shall process 
     and issue or deny each application for a transportation 
     security card under this section for individuals with current 
     and valid merchant mariners' documents on the date of the 
     enactment of the SAFE Port Act.
       ``(k) Deployment of Transportation Security Card Readers.--
       ``(1) Pilot program.--
       ``(A) In general.--The Secretary shall conduct a pilot 
     program to test the business processes, technology, and 
     operational impacts required to deploy transportation 
     security card readers at secure areas of the marine 
     transportation system.
       ``(B) Geographic locations.--The pilot program shall take 
     place at not fewer than 5 distinct geographic locations, to 
     include vessels and facilities in a variety of environmental 
     settings.
       ``(C) Commencement.--The pilot program shall commence not 
     later than 180 days after the date of the enactment of the 
     SAFE Port Act.
       ``(2) Correlation with transportation security cards.--
       ``(A) In general.--The pilot program described in paragraph 
     (1) shall be conducted concurrently with the issuance of the 
     transportation security cards described in subsection (b) to 
     ensure card and card reader interoperability.
       ``(B) Fee.--An individual charged a fee for a 
     transportation security card issued under this section may 
     not be charged an additional fee if the Secretary determines 
     different transportation security cards are needed based on 
     the results of the pilot program described in paragraph (1) 
     or for other reasons related to the technology requirements 
     for the transportation security card program.
       ``(3) Regulations.--Not later than 2 years after the 
     commencement of the pilot program under paragraph (1)(C), the 
     Secretary, after a notice and comment period that includes at 
     least 1 public hearing, shall promulgate final regulations 
     that require the deployment of transportation security card 
     readers that are consistent with the findings of the pilot 
     program and build upon the regulations prescribed under 
     subsection (a).
       ``(4) Report.--Not later than 120 days before the 
     promulgation of regulations under paragraph (3), the 
     Secretary shall submit a comprehensive report to the 
     appropriate congressional committees (as defined in section 
     2(1) of SAFE Port Act) that includes--
       ``(A) the findings of the pilot program with respect to 
     technical and operational impacts of implementing a 
     transportation security card reader system;
       ``(B) any actions that may be necessary to ensure that all 
     vessels and facilities to which this section applies are able 
     to comply with such regulations; and
       ``(C) an analysis of the viability of equipment under the 
     extreme weather conditions of the marine environment.
       ``(l) Progress Reports.--Not later than 6 months after the 
     date of the enactment of the SAFE Port Act, and every 6 
     months thereafter until the requirements under this section 
     are fully implemented, the Secretary shall submit a report on 
     progress being made in implementing such requirements to the 
     appropriate congressional committees (as defined in section 
     2(1) of the SAFE Port Act).
       ``(m) Limitation.--The Secretary may not require the 
     placement of an electronic reader for transportation security 
     cards on a vessel unless--
       ``(1) the vessel has more individuals on the crew that are 
     required to have a transportation security card than the 
     number the Secretary determines, by regulation issued under 
     subsection (k)(3), warrants such a reader; or
       ``(2) the Secretary determines that the vessel is at risk 
     of a severe transportation security incident.''.
       (b) Clarification of Eligibility for Transportation 
     Security Cards.--Section 70105 of title 46, United States 
     Code, is amended--
       (1) in subsection (b)(2)--
       (A) in subparagraph (E), by striking ``and'' at the end;
       (B) in subparagraph (F), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(G) other individuals as determined appropriate by the 
     Secretary including individuals employed at a port not 
     otherwise covered by this subsection.''; and
       (2) in subsection (c)(2), by inserting ``subparagraph (A), 
     (B), or (D)'' before ``paragraph (1)''.
       (c) Deadline for Section 70105 Regulations.--Not later than 
     January 1, 2007, the Secretary shall promulgate final 
     regulations implementing the requirements for issuing 
     transportation security cards under section 70105 of title 
     46, United States Code. The regulations shall include a 
     background check process to enable newly hired workers to 
     begin working unless the Secretary makes an initial 
     determination that

[[Page 21302]]

     the worker poses a security risk. Such process shall include 
     a check against the consolidated and integrated terrorist 
     watch list maintained by the Federal Government.

     SEC. 105. STUDY TO IDENTIFY REDUNDANT BACKGROUND RECORDS 
                   CHECKS.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study of background records checks carried 
     out for the Department that are similar to the background 
     records check required under section 5103a of title 49, 
     United States Code, to identify redundancies and 
     inefficiencies in connection with such checks.
       (b) Report.--Not later than 6 months after the date of the 
     enactment of this Act, the Comptroller General of the United 
     States shall submit a report to Congress on the results of 
     the study, including--
       (1) an identification of redundancies and inefficiencies 
     referred to in subsection (a); and
       (2) recommendations for eliminating such redundancies and 
     inefficiencies.

     SEC. 106. PROHIBITION OF ISSUANCE OF TRANSPORTATION SECURITY 
                   CARDS TO PERSONS CONVICTED OF CERTAIN FELONIES.

       The Secretary, in issuing a final rule pursuant to section 
     70105 of title 46, United States Code, shall provide for the 
     disqualification of individuals who have been found guilty or 
     have been found not guilty by reason of insanity of a felony, 
     involving--
       (1) treason, or conspiracy to commit treason;
       (2) espionage, or conspiracy to commit espionage;
       (3) sedition, or conspiracy to commit sedition; or
       (4) a crime listed in chapter 113B of title 18, United 
     States Code, a comparable State law, or conspiracy to commit 
     such crime.

     SEC. 107. LONG-RANGE VESSEL TRACKING.

       (a) Regulations.--Section 70115 of title 46, United States 
     Code, is amended in the first sentence by striking ``The 
     Secretary'' and inserting ``Not later than April 1, 2007, the 
     Secretary''.
       (b) Voluntary Program.--The Secretary may issue regulations 
     to establish a voluntary long-range automated vessel tracking 
     system for vessels described in section 70115 of title 46, 
     United States Code, during the period before regulations are 
     issued under such section.

     SEC. 108. ESTABLISHMENT OF INTERAGENCY OPERATIONAL CENTERS 
                   FOR PORT SECURITY.

       (a) In General.--Chapter 701 of title 46, United States 
     Code, is amended by inserting after section 70107 the 
     following:

     ``Sec. 70107A. Interagency operational centers for port 
       security

       ``(a) In General.--The Secretary shall establish 
     interagency operational centers for port security at all 
     high-priority ports not later than 3 years after the date of 
     the enactment of the SAFE Port Act.
       ``(b) Characteristics.--The interagency operational centers 
     established under this section shall--
       ``(1) utilize, as appropriate, the compositional and 
     operational characteristics of existing centers, including--
       ``(A) the pilot project interagency operational centers for 
     port security in Miami, Florida; Norfolk/Hampton Roads, 
     Virginia; Charleston, South Carolina; and San Diego, 
     California; and
       ``(B) the virtual operation center of the Port of New York 
     and New Jersey;
       ``(2) be organized to fit the security needs, requirements, 
     and resources of the individual port area at which each is 
     operating;
       ``(3) in addition to the Coast Guard, provide, as the 
     Secretary determines appropriate, for participation by 
     representatives of the United States Customs and Border 
     Protection, the United States Immigration and Customs 
     Enforcement, the Transportation Security Administration, the 
     Department of Justice, the Department of Defense, and other 
     Federal agencies, State and local law enforcement or port 
     security personnel, members of the Area Maritime Security 
     Committee, and other public and private sector stakeholders 
     adversely affected by a transportation security incident or 
     transportation disruption; and
       ``(4) be incorporated in the implementation and 
     administration of--
       ``(A) maritime transportation security plans developed 
     under section 70103;
       ``(B) maritime intelligence activities under section 70113 
     and information sharing activities consistent with section 
     1016 of the National Security Intelligence Reform Act of 2004 
     (6 U.S.C. 485) and the Homeland Security Information Sharing 
     Act (6 U.S.C. 481 et seq.);
       ``(C) short- and long-range vessel tracking under sections 
     70114 and 70115;
       ``(D) protocols under section 201(b)(10) of the SAFE Port 
     Act;
       ``(E) the transportation security incident response plans 
     required by section 70104; and
       ``(F) other activities, as determined by the Secretary.
       ``(c) Security Clearances.--The Secretary shall sponsor and 
     expedite individuals participating in interagency operational 
     centers in gaining or maintaining their security clearances. 
     Through the Captain of the Port, the Secretary may identify 
     key individuals who should participate. The port or other 
     entities may appeal to the Captain of the Port for 
     sponsorship.
       ``(d) Security Incidents.--During a transportation security 
     incident on or adjacent to waters subject to the jurisdiction 
     of the United States, the Coast Guard Captain of the Port 
     designated by the Commandant of the Coast Guard in a maritime 
     security command center described in subsection (a) shall act 
     as the incident commander, unless otherwise directed by the 
     President.
       ``(e) Rule of Construction.--Nothing in this section shall 
     be construed to affect the normal command and control 
     procedures for operational entities in the Department, unless 
     so directed by the Secretary.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated $60,000,000 for each of the 
     fiscal years 2007 through 2012 to carry out this section.''.
       (b) Report Requirement.--Nothing in this section or the 
     amendments made by this section relieves the Commandant of 
     the Coast Guard from complying with the requirements of 
     section 807 of the Coast Guard and Maritime Transportation 
     Act of 2004 (Public Law 108-293; 118 Stat. 1082). The 
     Commandant shall utilize the information developed in making 
     the report required by that section in carrying out the 
     requirements of this section.
       (c) Budget and Cost-Sharing Analysis.--Not later than 180 
     days after the date of the enactment of this Act, the 
     Secretary of the department in which the Coast Guard is 
     operating shall submit to the appropriate congressional 
     committees a proposed budget analysis for implementing 
     section 70107A of title 46, United States Code, as added by 
     subsection (a), including cost-sharing arrangements with 
     other Federal departments and agencies involved in the 
     interagency operation of the centers to be established under 
     such section.
       (d) Clerical Amendment.--The chapter analysis for chapter 
     701 of title 46, United States Code, is amended by inserting 
     after the item relating to section 70107 the following:

``70107A. Interagency operational centers for port security''.

     SEC. 109. NOTICE OF ARRIVAL FOR FOREIGN VESSELS ON THE OUTER 
                   CONTINENTAL SHELF.

       (a) Notice of Arrival.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of the 
     department in which the Coast Guard is operating shall update 
     and finalize the rulemaking on notice of arrival for foreign 
     vessels on the Outer Continental Shelf.
       (b) Content of Regulations.--The regulations promulgated 
     pursuant to subsection (a) shall be consistent with 
     information required under the Notice of Arrival under 
     section 160.206 of title 33, Code of Federal Regulations, as 
     in effect on the date of the enactment of this Act.

     SEC. 110. ENHANCED CREWMEMBER IDENTIFICATION.

       Section 70111 of title 46, United States Code, is amended--
       (1) in subsection (a) by striking ``The'' and inserting 
     ``Not later than 1 year after the date of enactment of the 
     SAFE Port Act, the''; and
       (2) in subsection (b) by striking ``The'' and inserting 
     ``Not later than 1 year after the date of enactment of the 
     SAFE Port Act, the''.

    Subtitle B--Port Security Grants; Training and Exercise Programs

     SEC. 111. RISK ASSESSMENT TOOL.

       In updating Area Maritime Security Plans required under 
     section 70103(b)(2)(F) of title 46, United States Code, and 
     in applying for grants under section 70107 of such title, the 
     Secretary of the Department in which the Coast Guard is 
     operating shall make available, and Area Maritime Security 
     Committees may use a risk assessment tool that uses 
     standardized risk criteria, such as the Maritime Security 
     Risk Assessment Tool used by the Coast Guard.

     SEC. 112. PORT SECURITY GRANTS.

       (a) Basis for Grants.--Section 70107(a) of title 46, United 
     States Code, is amended by striking ``for making a fair and 
     equitable allocation of funds'' and inserting ``for the 
     allocation of funds based on risk''.
       (b) Eligible Uses.--Section 70107(b) of title 46, United 
     States Code, is amended--
       (1) in paragraph (2), by inserting after ``crewmembers.'' 
     the following: ``Grants awarded under this section may not be 
     used to construct buildings or other physical facilities, 
     except those which are constructed under terms and conditions 
     consistent with the requirements under section 611(j)(8) of 
     the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (42 U.S.C. 5121(j)(8)), including those 
     facilities in support of this paragraph, and specifically 
     approved by the Secretary. Costs eligible for funding under 
     this paragraph may not exceed the greater of--
       ``(A) $1,000,000 per project; or
       ``(B) such greater amount as may be approved by the 
     Secretary, which may not exceed 10 percent of the total 
     amount of the grant.''; and
       (2) by adding at the end the following:
       ``(5) The cost of conducting exercises or training for 
     prevention and detection of, preparedness for, response to, 
     or recovery from terrorist attacks.
       ``(6) The cost of establishing or enhancing mechanisms for 
     sharing terrorism threat information and ensuring that the 
     mechanisms are interoperable with Federal, State, and local 
     agencies.
       ``(7) The cost of equipment (including software) required 
     to receive, transmit, handle, and store classified 
     information.''.
       (c) Multiple-Year Projects, etc.--Section 70107 of title 
     46, United States Code, is amended--
       (1) by redesignating subsections (e), (f), (g), (h), and 
     (i) as subsections (i), (j), (k), (l), and (m), respectively, 
     and by inserting after subsection (d) the following:
       ``(e) Multiple-Year Projects.--

[[Page 21303]]

       ``(1) Letters of intent.--The Secretary may execute letters 
     of intent to commit funding to such authorities, operators, 
     and agencies.
       ``(2) Limitation.--Not more than 20 percent of the grant 
     funds awarded under this subsection in any fiscal year may be 
     awarded for projects that span multiple years.
       ``(f) Consistency With Plans.--The Secretary shall ensure 
     that each grant awarded under subsection (e)--
       ``(1) is used to supplement and support, in a consistent 
     and coordinated manner, the applicable Area Maritime 
     Transportation Security Plan; and
       ``(2) is coordinated with any applicable State or Urban 
     Area Homeland Security Plan.
       ``(g) Applications.--Any entity subject to an Area Maritime 
     Transportation Security Plan may submit an application for a 
     grant under this section, at such time, in such form, and 
     containing such information and assurances as the Secretary 
     may require.
       ``(h) Reports.--Not later than 180 days after the date of 
     the enactment of the SAFE Port Act, the Secretary, acting 
     through the Commandant of the Coast Guard, shall submit a 
     report to Congress, in a secure format, describing the 
     methodology used to allocate port security grant funds on the 
     basis of risk.''; and
       (2) in subsection (i)(1), as redesignated, by striking 
     ``program'' and inserting ``Secretary''.
       (d) Authorization of Appropriations.--Section 70107(l) of 
     title 46, United States Code, as redesignated, is amended to 
     read as follows:
       ``(l) Authorization of Appropriations.--There are 
     authorized to be appropriated $400,000,000 for each of the 
     fiscal years 2007 through 2011 to carry out this section.''.
       (e) Basis for Grants.--Section 70107(a) of title 46, United 
     States Code, is amended by striking ``national economic and 
     strategic defense concerns'' and inserting ``national 
     economic, energy, and strategic defense concerns based upon 
     the most current risk assessments available''.

     SEC. 113. PORT SECURITY TRAINING PROGRAM.

       (a) In General.--The Secretary, acting through the Under 
     Secretary for Preparedness and in coordination with the 
     Commandant of the Coast Guard, shall establish a Port 
     Security Training Program (referred to in this section as the 
     ``Training Program'') for the purpose of enhancing the 
     capabilities of each facility required to submit a plan under 
     section 70103(c) of title 46, United States Code, to prevent, 
     prepare for, respond to, mitigate against, and recover from 
     threatened or actual acts of terrorism, natural disasters, 
     and other emergencies.
       (b) Requirements.--The Training Program shall provide 
     validated training that--
       (1) reaches multiple disciplines, including Federal, State, 
     and local government officials, commercial seaport personnel 
     and management, and governmental and nongovernmental 
     emergency response providers;
       (2) provides training at the awareness, performance, and 
     management and planning levels;
       (3) utilizes multiple training mediums and methods;
       (4) addresses port security topics, including--
       (A) facility security plans and procedures, including how 
     security plans and procedures are adjusted when threat levels 
     increase;
       (B) facility security force operations and management;
       (C) physical security and access control at facilities;
       (D) methods of security for preventing and countering cargo 
     theft;
       (E) container security;
       (F) recognition and detection of weapons, dangerous 
     substances, and devices;
       (G) operation and maintenance of security equipment and 
     systems;
       (H) security threats and patterns;
       (I) security incident procedures, including procedures for 
     communicating with governmental and nongovernmental emergency 
     response providers; and
       (J) evacuation procedures;
       (5) is consistent with, and supports implementation of, the 
     National Incident Management System, the National Response 
     Plan, the National Infrastructure Protection Plan, the 
     National Preparedness Guidance, the National Preparedness 
     Goal, the National Maritime Transportation Security Plan, and 
     other such national initiatives;
       (6) is evaluated against clear and consistent performance 
     measures;
       (7) addresses security requirements under facility security 
     plans; and
       (8) educates, trains, and involves individuals in 
     neighborhoods around facilities required to submit a plan 
     under section 70103(c) of title 46, United States Code, on 
     how to observe and report security risks.
       (c) Vessel and Facility Security Plans.--Section 
     70103(c)(3) of title 46, United States Code, is amended--
       (1) by redesignating subparagraphs (F), (G), and (H) (as 
     added by section 102(1)(D)) as subparagraphs (G), (H), and 
     (I), respectively; and
       (2) by inserting after subparagraph (E) the following:
       ``(F) provide a strategy and timeline for conducting 
     training and periodic unannounced drills;''.
       (d) Consultation.--The Secretary shall ensure that, in 
     carrying out the Program, the Office of Grants and Training 
     shall consult with commercial seaport personnel and 
     management.
       (e) Training Partners.--In developing and delivering 
     training under the Training Program, the Secretary, in 
     coordination with the Maritime Administration of the 
     Department of Transportation, and consistent with section 109 
     of the Maritime Transportation Security Act of 2002 (46 
     U.S.C. 70101 note), shall--
       (1) work with government training facilities, academic 
     institutions, private organizations, employee organizations, 
     and other entities that provide specialized, state-of-the-art 
     training for governmental and nongovernmental emergency 
     responder providers or commercial seaport personnel and 
     management; and
       (2) utilize, as appropriate, government training 
     facilities, courses provided by community colleges, public 
     safety academies, State and private universities, and other 
     facilities.

     SEC. 114. PORT SECURITY EXERCISE PROGRAM.

       (a) In General.--The Secretary, acting through the Under 
     Secretary for Preparedness and in coordination with the 
     Commandant of the Coast Guard, shall establish a Port 
     Security Exercise Program (referred to in this section as the 
     ``Exercise Program'') for the purpose of testing and 
     evaluating the capabilities of Federal, State, local, and 
     foreign governments, commercial seaport personnel and 
     management, governmental and nongovernmental emergency 
     response providers, the private sector, or any other 
     organization or entity, as the Secretary determines to be 
     appropriate, to prevent, prepare for, mitigate against, 
     respond to, and recover from acts of terrorism, natural 
     disasters, and other emergencies at facilities required to 
     submit a plan under section 70103(c) of title 46, United 
     States Code.
       (b) Requirements.--The Secretary shall ensure that the 
     Exercise Program--
       (1) conducts, on a periodic basis, port security exercises 
     at such facilities that are--
       (A) scaled and tailored to the needs of each facility;
       (B) live, in the case of the most at-risk facilities;
       (C) as realistic as practicable and based on current risk 
     assessments, including credible threats, vulnerabilities, and 
     consequences;
       (D) consistent with the National Incident Management 
     System, the National Response Plan, the National 
     Infrastructure Protection Plan, the National Preparedness 
     Guidance, the National Preparedness Goal, the National 
     Maritime Transportation Security Plan, and other such 
     national initiatives;
       (E) evaluated against clear and consistent performance 
     measures;
       (F) assessed to learn best practices, which shall be shared 
     with appropriate Federal, State, and local officials, 
     commercial seaport personnel and management, governmental and 
     nongovernmental emergency response providers, and the private 
     sector; and
       (G) followed by remedial action in response to lessons 
     learned; and
       (2) assists State and local governments and facilities in 
     designing, implementing, and evaluating exercises that--
       (A) conform to the requirements of paragraph (1); and
       (B) are consistent with any applicable Area Maritime 
     Transportation Security Plan and State or Urban Area Homeland 
     Security Plan.
       (c) Improvement Plan.--The Secretary shall establish a port 
     security exercise improvement plan process to--
       (1) identify and analyze each port security exercise for 
     lessons learned and best practices;
       (2) disseminate lessons learned and best practices to 
     participants in the Exercise Program;
       (3) monitor the implementation of lessons learned and best 
     practices by participants in the Exercise Program; and
       (4) conduct remedial action tracking and long-term trend 
     analysis.

     SEC. 115. FACILITY EXERCISE REQUIREMENTS.

       The Secretary of the Department in which the Coast Guard is 
     operating shall require each high risk facility to conduct 
     live or full-scale exercises described in section 105.220(c) 
     of title 33, Code of Federal Regulations, not less frequently 
     than once every 2 years, in accordance with the facility 
     security plan required under section 70103(c) of title 46, 
     United States Code.

                      Subtitle C--Port Operations

     SEC. 121. DOMESTIC RADIATION DETECTION AND IMAGING.

       (a) Scanning Containers.--Subject to section 1318 of title 
     19, United States Code, not later than December 31, 2007, all 
     containers entering the United States through the 22 ports 
     through which the greatest volume of containers enter the 
     United States by vessel shall be scanned for radiation. To 
     the extent practicable, the Secretary shall deploy next 
     generation radiation detection technology.
       (b) Strategy.--The Secretary shall develop a strategy for 
     the deployment of radiation detection capabilities that 
     includes--
       (1) a risk-based prioritization of ports of entry at which 
     radiation detection equipment will be deployed;
       (2) a proposed timeline of when radiation detection 
     equipment will be deployed at each port of entry identified 
     under paragraph (1);
       (3) the type of equipment to be used at each port of entry 
     identified under paragraph (1), including the joint 
     deployment and utilization of radiation detection equipment 
     and nonintrusive imaging equipment;
       (4) standard operating procedures for examining containers 
     with such equipment, including sensor alarming, networking, 
     and communications and response protocols;
       (5) operator training plans;
       (6) an evaluation of the environmental health and safety 
     impacts of nonintrusive imaging technology and a radiation 
     risk reduction plan, in consultation with the Nuclear 
     Regulatory Commission, the Occupational Safety and Health 
     Administration, and the National Institute for Occupational 
     Safety and Health, that

[[Page 21304]]

     seeks to minimize radiation exposure of workers and the 
     public to levels as low as reasonably achievable;
       (7) the policy of the Department for using nonintrusive 
     imaging equipment in tandem with radiation detection 
     equipment; and
       (8) a classified annex that--
       (A) details plans for covert testing; and
       (B) outlines the risk-based prioritization of ports of 
     entry identified under paragraph (1).
       (c) Report.--Not later than 90 days after the date of the 
     enactment of this Act, the Secretary shall submit the 
     strategy developed under subsection (b) to the appropriate 
     congressional committees.
       (d) Update.--Not later than 180 days after the date of the 
     submission of the report under subsection (c), the Secretary 
     shall provide a more complete evaluation under subsection 
     (b)(6).
       (e) Other Weapons of Mass Destruction Threats.--Not later 
     than 180 days after the date of the enactment of this Act, 
     the Secretary shall submit to the appropriate congressional 
     committees a report on the feasibility of, and a strategy 
     for, the development of equipment to detect and prevent 
     shielded nuclear and radiological threat material and 
     chemical, biological, and other weapons of mass destruction 
     from entering the United States.
       (f) Standards.--The Secretary, acting through the Director 
     for Domestic Nuclear Detection and in collaboration with the 
     National Institute of Standards and Technology, shall publish 
     technical capability standards and recommended standard 
     operating procedures for the use of nonintrusive imaging and 
     radiation detection equipment in the United States. Such 
     standards and procedures--
       (1) should take into account relevant standards and 
     procedures utilized by other Federal departments or agencies 
     as well as those developed by international bodies; and
       (2) shall not be designed so as to endorse specific 
     companies or create sovereignty conflicts with participating 
     countries.
       (g) Implementation.--Not later than 3 years after the date 
     of the enactment of this Act, the Secretary shall fully 
     implement the strategy developed under subsection (b).
       (h) Expansion To Other United States Ports of Entry.--
       (1) In general.--As soon as practicable after--
       (A) implementation of the program for the examination of 
     containers for radiation at ports of entry described in 
     subsection (a); and
       (B) submission of the strategy developed under subsection 
     (b) (and updating, if any, of that strategy under subsection 
     (c)),

     but not later than December 31, 2008, the Secretary shall 
     expand the strategy developed under subsection (b), in a 
     manner consistent with the requirements of subsection (b), to 
     provide for the deployment of radiation detection 
     capabilities at all other United States ports of entry not 
     covered by the strategy developed under subsection (b).
       (2) Risk assessment.--In expanding the strategy under 
     paragraph (1), the Secretary shall identify and assess the 
     risks to those other ports of entry in order to determine 
     what equipment and practices will best mitigate the risks.
       (i) Intermodal Rail Radiation Detection Test Center.--
       (1) Establishment.--In accordance with subsection (b), and 
     in order to comply with this section, the Secretary shall 
     establish an Intermodal Rail Radiation Detection Test Center 
     (referred to in this subsection as the ``Test Center'').
       (2) Projects.--The Secretary shall conduct multiple, 
     concurrent projects at the Test Center to rapidly identify 
     and test concepts specific to the challenges posed by on-dock 
     rail.
       (3) Location.--The Test Center shall be located within a 
     public port facility at which a majority of the containerized 
     cargo is directly laden from (or unladen to) on-dock, 
     intermodal rail.

     SEC. 122. INSPECTION OF CAR FERRIES ENTERING FROM ABROAD.

       Not later than 120 days after the date of the enactment of 
     this Act, the Secretary, acting through the Commissioner, and 
     in coordination with the Secretary of State and in 
     cooperation with ferry operators and appropriate foreign 
     government officials, shall seek to develop a plan for the 
     inspection of passengers and vehicles before such passengers 
     board, or such vehicles are loaded onto, a ferry bound for a 
     United States facility required to submit a plan under 
     section 70103(c) of title 46, United States Code.

     SEC. 123. RANDOM SEARCHES OF CONTAINERS.

       Not later than 1 year after the date of the enactment of 
     this Act, the Secretary, acting through the Commissioner, 
     shall develop and implement a plan, utilizing best practices 
     for empirical scientific research design and random sampling, 
     to conduct random searches of containers in addition to any 
     targeted or preshipment inspection of such containers 
     required by law or regulation or conducted under any other 
     program conducted by the Secretary. Nothing in this section 
     shall be construed to mean that implementation of the random 
     sampling plan precludes additional searches of containers not 
     inspected pursuant to the plan.

     SEC. 124. WORK STOPPAGES AND EMPLOYEE-EMPLOYER DISPUTES.

       Section 70101(6) of title 46, United States Code, is 
     amended by adding at the end the following: ``In this 
     paragraph, the term `economic disruption' does not include a 
     work stoppage or other employee-related action not related to 
     terrorism and resulting from an employee-employer dispute.''.

     SEC. 125. THREAT ASSESSMENT SCREENING OF PORT TRUCK DRIVERS.

       Not later than 90 days after the date of the enactment of 
     this Act, the Secretary shall implement a threat assessment 
     screening, including name-based checks against terrorist 
     watch lists and immigration status check, for all port truck 
     drivers with access to secure areas of a port who have a 
     commercial driver's license but do not have a current and 
     valid hazardous materials endorsement issued in accordance 
     with section 1572 of title 49, Code of Federal Regulations, 
     that is the same as the threat assessment screening required 
     for facility employees and longshoremen by the Commandant of 
     the Coast Guard under Coast Guard Notice USCG-2006-24189 
     (Federal Register, Vol. 71, No. 82, Friday, April 28, 2006).

     SEC. 126. BORDER PATROL UNIT FOR UNITED STATES VIRGIN 
                   ISLANDS.

       (a) In General.--The Secretary may establish at least 1 
     Border Patrol unit for the United States Virgin Islands.
       (b) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary shall submit a report to 
     the appropriate congressional committees that includes the 
     schedule, if any, for carrying out subsection (a).

     SEC. 127. REPORT ON ARRIVAL AND DEPARTURE MANIFESTS FOR 
                   CERTAIN COMMERCIAL VESSELS IN THE UNITED STATES 
                   VIRGIN ISLANDS.

       Not later than 90 days after the date of the enactment of 
     this Act, the Secretary shall submit to the appropriate 
     congressional committees a report on the impact of 
     implementing the requirements of section 231 of the 
     Immigration and Nationality Act (8 U.S.C. 1221) (relating to 
     providing United States border officers with arrival and 
     departure manifests) with respect to commercial vessels that 
     are fewer than 300 gross tons and operate exclusively between 
     the territorial waters of the United States Virgin Islands 
     and the territorial waters of the British Virgin Islands.

     SEC. 128. CENTER OF EXCELLENCE FOR MARITIME DOMAIN AWARENESS.

       (a) Establishment.--The Secretary shall establish a 
     university-based Center for Excellence for Maritime Domain 
     Awareness following the merit-review processes and procedures 
     that have been established by the Secretary for selecting 
     university program centers of excellence.
       (b) Duties.--The Center established under subsection (a) 
     shall--
       (1) prioritize its activities based on the ``National Plan 
     to Improve Maritime Domain Awareness'' published by the 
     Department in October 2005;
       (2) recognize the extensive previous and ongoing work and 
     existing competence in the field of maritime domain awareness 
     at numerous academic and research institutions, such as the 
     Naval Postgraduate School;
       (3) leverage existing knowledge and continue development of 
     a broad base of expertise within academia and industry in 
     maritime domain awareness; and
       (4) provide educational, technical, and analytical 
     assistance to Federal agencies with responsibilities for 
     maritime domain awareness, including the Coast Guard, to 
     focus on the need for interoperability, information sharing, 
     and common information technology standards and architecture.

          TITLE II--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN

                     Subtitle A--General Provisions

     SEC. 201. STRATEGIC PLAN TO ENHANCE THE SECURITY OF THE 
                   INTERNATIONAL SUPPLY CHAIN.

       (a) Strategic Plan.--The Secretary, in consultation with 
     appropriate Federal, State, local, and tribal government 
     agencies and private sector stakeholders responsible for 
     security matters that affect or relate to the movement of 
     containers through the international supply chain, shall 
     develop, implement, and update, as appropriate, a strategic 
     plan to enhance the security of the international supply 
     chain.
       (b) Requirements.--The strategic plan required under 
     subsection (a) shall--
       (1) describe the roles, responsibilities, and authorities 
     of Federal, State, local, and tribal government agencies and 
     private-sector stakeholders that relate to the security of 
     the movement of containers through the international supply 
     chain;
       (2) identify and address gaps and unnecessary overlaps in 
     the roles, responsibilities, or authorities described in 
     paragraph (1);
       (3) identify and make recommendations regarding 
     legislative, regulatory, and organizational changes necessary 
     to improve coordination among the entities or to enhance the 
     security of the international supply chain;
       (4) provide measurable goals, including objectives, 
     mechanisms, and a schedule, for furthering the security of 
     commercial operations from point of origin to point of 
     destination;
       (5) build on available resources and consider costs and 
     benefits;
       (6) provide incentives for additional voluntary measures to 
     enhance cargo security, as recommended by the Commissioner;
       (7) consider the impact of supply chain security 
     requirements on small- and medium-sized companies;
       (8) include a process for sharing intelligence and 
     information with private-sector stakeholders to assist in 
     their security efforts;
       (9) identify a framework for prudent and measured response 
     in the event of a transportation security incident involving 
     the international supply chain;
       (10) provide protocols for the expeditious resumption of 
     the flow of trade in accordance with section 202;
       (11) consider the linkages between supply chain security 
     and security programs within

[[Page 21305]]

     other systems of movement, including travel security and 
     terrorism finance programs; and
       (12) expand upon and relate to existing strategies and 
     plans, including the National Response Plan, the National 
     Maritime Transportation Security Plan, the National Strategy 
     for Maritime Security, and the 8 supporting plans of the 
     Strategy, as required by Homeland Security Presidential 
     Directive 13.
       (c) Consultation.--In developing protocols under subsection 
     (b)(10), the Secretary shall consult with Federal, State, 
     local, and private sector stakeholders, including the 
     National Maritime Security Advisory Committee and the 
     Commercial Operations Advisory Committee.
       (d) Communication.--To the extent practicable, the 
     strategic plan developed under subsection (a) shall provide 
     for coordination with, and lines of communication among, 
     appropriate Federal, State, local, and private-sector 
     stakeholders on law enforcement actions, intermodal rerouting 
     plans, and other strategic infrastructure issues resulting 
     from a transportation security incident or transportation 
     disruption.
       (e) Utilization of Advisory Committees.--As part of the 
     consultations described in subsection (a), the Secretary 
     shall, to the extent practicable, utilize the Homeland 
     Security Advisory Committee, the National Maritime Security 
     Advisory Committee, and the Commercial Operations Advisory 
     Committee to review, as necessary, the draft strategic plan 
     and any subsequent updates to the strategic plan.
       (f) International Standards and Practices.--In furtherance 
     of the strategic plan required under subsection (a), the 
     Secretary is encouraged to consider proposed or established 
     standards and practices of foreign governments and 
     international organizations, including the International 
     Maritime Organization, the World Customs Organization, the 
     International Labor Organization, and the International 
     Organization for Standardization, as appropriate, to 
     establish standards and best practices for the security of 
     containers moving through the international supply chain.
       (g) Report.--
       (1) Initial report.--Not later than 270 days after the date 
     of the enactment of this Act, the Secretary shall submit to 
     the appropriate congressional committees a report that 
     contains the strategic plan required by subsection (a).
       (2) Final report.--Not later than 3 years after the date on 
     which the strategic plan is submitted under paragraph (1), 
     the Secretary shall submit a report to the appropriate 
     congressional committees that contains an update of the 
     strategic plan.

     SEC. 202. POST-INCIDENT RESUMPTION OF TRADE.

       (a) In General.--The Secretary shall develop and update, as 
     necessary, protocols for the resumption of trade in 
     accordance with section 201(b)(10) in the event of a 
     transportation disruption or a transportation security 
     incident. The protocols shall include--
       (1) the identification of the appropriate initial incident 
     commander, if the Commandant of the Coast Guard is not the 
     appropriate person, and lead departments, agencies, or 
     offices to execute such protocols;
       (2) a plan to redeploy resources and personnel, as 
     necessary, to reestablish the flow of trade;
       (3) a plan to provide training for the periodic instruction 
     of personnel of the United States Customs and Border 
     Protection, the Coast Guard, and the Transportation Security 
     Administration in trade resumption functions and 
     responsibilities; and
       (4) appropriate factors for establishing prioritization of 
     vessels and cargo determined by the President to be critical 
     for response and recovery, including factors relating to 
     public health, national security, and economic need.
       (b) Vessels.--In determining the prioritization of vessels 
     accessing facilities (as defined under section 70101 of title 
     46, United States Code), the Commandant of the Coast Guard 
     may, to the extent practicable and consistent with the 
     protocols and plans required under this section to ensure the 
     safe and secure transit of vessels to ports in the United 
     States after a transportation security incident, give 
     priority to a vessel--
       (1) that has an approved security plan under section 
     70103(c) of title 46, United States Code, or a valid 
     international ship security certificate, as provided under 
     part 104 of title 33, Code of Federal Regulations;
       (2) that is manned by individuals who are described in 
     section 70105(b)(2)(B) of title 46, United States Code; and
       (3) that is operated by validated participants in the 
     Customs-Trade Partnership Against Terrorism program.
       (c) Cargo.--In determining the prioritization of the 
     resumption of the flow of cargo and consistent with the 
     protocols established under this section, the Commissioner 
     may give preference to cargo--
       (1) entering a port of entry directly from a foreign 
     seaport designated under the Container Security Initiative;
       (2) from the supply chain of a validated C-TPAT participant 
     and other private sector entities, as appropriate; or
       (3) that has undergone--
       (A) a nuclear or radiological detection scan;
       (B) an x-ray, density, or other imaging scan; and
       (C) a system to positively identify the container at the 
     last port of departure prior to arrival in the United States, 
     which data has been evaluated and analyzed by personnel of 
     the United States Customs and Border Protection.
       (d) Coordination.--The Secretary shall ensure that there is 
     appropriate coordination among the Commandant of the Coast 
     Guard, the Commissioner, and other Federal officials 
     following a maritime disruption or maritime transportation 
     security incident in order to provide for the resumption of 
     trade.
       (e) Communication.--Consistent with section 201, the 
     Commandant of the Coast Guard, Commissioner, and other 
     appropriate Federal officials, shall promptly communicate any 
     revised procedures or instructions intended for the private 
     sector following a maritime disruption or maritime 
     transportation security incident.

     SEC. 203. AUTOMATED TARGETING SYSTEM.

       (a) In General.--The Secretary, acting through the 
     Commissioner, shall--
       (1) identify and seek the submission of data related to the 
     movement of a shipment of cargo through the international 
     supply chain; and
       (2) analyze the data described in paragraph (1) to identify 
     high-risk cargo for inspection.
       (b) Requirement.--The Secretary, acting through the 
     Commissioner, shall require the electronic transmission to 
     the Department of additional data elements for improved high-
     risk targeting, including appropriate security elements of 
     entry data, as determined by the Secretary, to be provided as 
     advanced information with respect to cargo destined for 
     importation into the United States prior to loading of such 
     cargo on vessels at foreign seaports.
       (c) Consideration.--The Secretary, acting through the 
     Commissioner, shall--
       (1) consider the cost, benefit, and feasibility of--
       (A) requiring additional nonmanifest documentation;
       (B) reducing the time period allowed by law for revisions 
     to a container cargo manifest;
       (C) reducing the time period allowed by law for submission 
     of certain elements of entry data, for vessel or cargo; and
       (D) such other actions the Secretary considers beneficial 
     for improving the information relied upon for the Automated 
     Targeting System and any successor targeting system in 
     furthering the security and integrity of the international 
     supply chain; and
       (2) consult with stakeholders, including the Commercial 
     Operations Advisory Committee, and identify to them the need 
     for such information, and the appropriate timing of its 
     submission.
       (d) Regulations.--The Secretary shall promulgate 
     regulations to carry out this section. In promulgating such 
     regulations, the Secretary shall adhere to the parameters 
     applicable to the development of regulations under section 
     343(a) of the Trade Act of 2002 (19 U.S.C. 2071 note), 
     including provisions relating to consultation, technology, 
     analysis, use of information, confidentiality, and timing 
     requirements.
       (e) System Improvements.--The Secretary, acting through the 
     Commissioner, shall--
       (1) conduct, through an independent panel, a review of the 
     effectiveness and capabilities of the Automated Targeting 
     System;
       (2) consider future iterations of the Automated Targeting 
     System, which would incorporate smart features, such as more 
     complex algorithms and real-time intelligence, instead of 
     relying solely on rule sets that are periodically updated;
       (3) ensure that the Automated Targeting System has the 
     capability to electronically compare manifest and other 
     available data for cargo entered into or bound for the United 
     States to detect any significant anomalies between such data 
     and facilitate the resolution of such anomalies;
       (4) ensure that the Automated Targeting System has the 
     capability to electronically identify, compile, and compare 
     select data elements for cargo entered into or bound for the 
     United States following a maritime transportation security 
     incident, in order to efficiently identify cargo for 
     increased inspection or expeditious release; and
       (5) develop a schedule to address the recommendations of 
     the Comptroller General of the United States, the Inspector 
     General of the Department of the Treasury, and the Inspector 
     General of the Department with respect to the operation of 
     the Automated Targeting System.
       (f) Secure Transmission of Certain Information.--All 
     information required by the Department from supply chain 
     partners shall be transmitted in a secure fashion, as 
     determined by the Secretary, so as to protect the information 
     from unauthorized access.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated to the United States Customs and Border 
     Protection to carry out the Automated Targeting System for 
     identifying high-risk oceanborne container cargo for 
     inspection--
       (1) $33,200,000 for fiscal year 2008;
       (2) $35,700,000 for fiscal year 2009; and
       (3) $37,485,000 for fiscal year 2010.

     SEC. 204. CONTAINER SECURITY STANDARDS AND PROCEDURES.

       (a) Establishment.--
       (1) In general.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary shall initiate a 
     rulemaking proceeding to establish minimum standards and 
     procedures for securing containers in transit to the United 
     States.
       (2) Interim rule.--Not later than 180 days after the date 
     of the enactment of this Act, the Secretary shall issue an 
     interim final rule pursuant to the proceeding described in 
     paragraph (1).
       (3) Missed deadline.--If the Secretary is unable to meet 
     the deadline established pursuant to paragraph (2), the 
     Secretary shall submit a letter to the appropriate 
     congressional committees explaining why the Secretary is 
     unable to

[[Page 21306]]

     meet that deadline and describing what must be done before 
     such minimum standards and procedures can be established.
       (4) Deadline for enforcement.--Not later than 2 years after 
     the date on which the standards and procedures are 
     established pursuant to paragraph (1), all containers bound 
     for ports of entry in the United States shall meet such 
     standards and procedures.
       (b) Review and Enhancement.--The Secretary shall regularly 
     review and enhance the standards and procedures established 
     pursuant to subsection (a), as appropriate, based on tests of 
     technologies as they become commercially available to detect 
     container intrusion and the highest consequence threats, 
     particularly weapons of mass destruction.
       (c) International Cargo Security Standards.--The Secretary, 
     in consultation with the Secretary of State, the Secretary of 
     Energy, and other Federal Government officials, as 
     appropriate, and with the Commercial Operations Advisory 
     Committee, the Homeland Security Advisory Committee, and the 
     National Maritime Security Advisory Committee, is encouraged 
     to promote and establish international standards for the 
     security of containers moving through the international 
     supply chain with foreign governments and international 
     organizations, including the International Maritime 
     Organization, the International Organization for 
     Standardization, the International Labor Organization, and 
     the World Customs Organization.
       (d) International Trade and Other Obligations.--In carrying 
     out this section, the Secretary shall consult with 
     appropriate Federal departments and agencies and private 
     sector stakeholders and ensure that actions under this 
     section do not violate international trade obligations or 
     other international obligations of the United States.

     SEC. 205. CONTAINER SECURITY INITIATIVE.

       (a) Establishment.--The Secretary, acting through the 
     Commissioner, shall establish and implement a program 
     (referred to in this section as the ``Container Security 
     Initiative'' or ``CSI'') to identify and examine or search 
     maritime containers that pose a security risk before loading 
     such containers in a foreign port for shipment to the United 
     States, either directly or through a foreign port.
       (b) Assessment.--The Secretary, acting through the 
     Commissioner, may designate foreign seaports to participate 
     in the Container Security Initiative after the Secretary has 
     assessed the costs, benefits, and other factors associated 
     with such designation, including--
       (1) the level of risk for the potential compromise of 
     containers by terrorists, or other threats as determined by 
     the Secretary;
       (2) the volume of cargo being imported to the United States 
     directly from, or being transshipped through, the foreign 
     seaport;
       (3) the results of the Coast Guard assessments conducted 
     pursuant to section 70108 of title 46, United States Code;
       (4) the commitment of the government of the country in 
     which the foreign seaport is located to cooperating with the 
     Department in sharing critical data and risk management 
     information and to maintain programs to ensure employee 
     integrity; and
       (5) the potential for validation of security practices at 
     the foreign seaport by the Department.
       (c) Notification.--The Secretary shall notify the 
     appropriate congressional committees of the designation of a 
     foreign port under the Container Security Initiative or the 
     revocation of such a designation before notifying the public 
     of such designation or revocation.
       (d) Negotiations.--The Secretary, in cooperation with the 
     Secretary of State and in consultation with the United States 
     Trade Representative, may enter into negotiations with the 
     government of each foreign nation in which a seaport is 
     designated under the Container Security Initiative to ensure 
     full compliance with the requirements under the Container 
     Security Initiative.
       (e) Overseas Inspections.--
       (1) Requirements and procedures.--The Secretary shall--
       (A) establish minimum technical capability criteria and 
     standard operating procedures for the use of nonintrusive 
     inspection and nuclear and radiological detection systems in 
     conjunction with CSI;
       (B) require each port designated under CSI to operate 
     nonintrusive inspection and nuclear and radiological 
     detection systems in accordance with the technical capability 
     criteria and standard operating procedures established under 
     subparagraph (A);
       (C) continually monitor the technologies, processes, and 
     techniques used to inspect cargo at ports designated under 
     CSI to ensure adherence to such criteria and the use of such 
     procedures; and
       (D) consult with the Secretary of Energy in establishing 
     the minimum technical capability criteria and standard 
     operating procedures established under subparagraph (A) 
     pertaining to radiation detection technologies to promote 
     consistency in detection systems at foreign ports designated 
     under CSI.
       (2) Constraints.--The criteria and procedures established 
     under paragraph (1)(A)--
       (A) shall be consistent, as practicable, with relevant 
     standards and procedures utilized by other Federal 
     departments or agencies, or developed by international bodies 
     if the United States consents to such standards and 
     procedures;
       (B) shall not apply to activities conducted under the 
     Megaports Initiative of the Department of Energy; and
       (C) shall not be designed to endorse the product or 
     technology of any specific company or to conflict with the 
     sovereignty of a country in which a foreign seaport 
     designated under the Container Security Initiative is 
     located.
       (f) Savings Provision.--The authority of the Secretary 
     under this section shall not affect any authority or 
     duplicate any efforts or responsibilities of the Federal 
     Government with respect to the deployment of radiation 
     detection equipment outside of the United States.
       (g) Coordination.--The Secretary shall--
       (1) coordinate with the Secretary of Energy, as necessary, 
     to provide radiation detection equipment required to support 
     the Container Security Initiative through the Department of 
     Energy's Second Line of Defense Program and Megaports 
     Initiative; or
       (2) work with the private sector or host governments, when 
     possible, to obtain radiation detection equipment that meets 
     the Department's and the Department of Energy's technical 
     specifications for such equipment.
       (h) Staffing.--The Secretary shall develop a human capital 
     management plan to determine adequate staffing levels in the 
     United States and in foreign seaports including, as 
     appropriate, the remote location of personnel in countries in 
     which foreign seaports are designated under the Container 
     Security Initiative.
       (i) Annual Discussions.--The Secretary, in coordination 
     with the appropriate Federal officials, shall hold annual 
     discussions with foreign governments of countries in which 
     foreign seaports designated under the Container Security 
     Initiative are located regarding best practices, technical 
     assistance, training needs, and technological developments 
     that will assist in ensuring the efficient and secure 
     movement of international cargo.
       (j) Lesser Risk Port.--The Secretary, acting through the 
     Commissioner, may treat cargo loaded in a foreign seaport 
     designated under the Container Security Initiative as 
     presenting a lesser risk than similar cargo loaded in a 
     foreign seaport that is not designated under the Container 
     Security Initiative, for the purpose of clearing such cargo 
     into the United States.
       (k) Prohibition.--
       (1) In general.--The Secretary shall issue a ``do not 
     load'' order, using existing authorities, to prevent the 
     onload of any cargo loaded at a port designated under CSI 
     that has been identified as high risk, including by the 
     Automated Targeting System, unless the cargo is determined to 
     no longer be high risk through--
       (A) a scan of the cargo with nonintrusive imaging equipment 
     and radiation detection equipment;
       (B) a search of the cargo; or
       (C) additional information received by the Department.
       (2) Rule of construction.--Nothing in this subsection shall 
     be construed to interfere with the ability of the Secretary 
     to deny entry of any cargo into the United States.
       (l) Report.--
       (1) In general.--Not later than September 30, 2007, the 
     Secretary, acting through the Commissioner, shall, in 
     consultation with other appropriate government officials and 
     the Commercial Operations Advisory Committee, submit a report 
     to the appropriate congressional committees on the 
     effectiveness of, and the need for any improvements to, the 
     Container Security Initiative. The report shall include--
       (A) a description of the technical assistance delivered to, 
     as well as needed at, each designated seaport;
       (B) a description of the human capital management plan at 
     each designated seaport;
       (C) a summary of the requests made by the United States to 
     foreign governments to conduct physical or nonintrusive 
     inspections of cargo at designated seaports, and whether each 
     such request was granted or denied by the foreign government;
       (D) an assessment of the effectiveness of screening, 
     scanning, and inspection protocols and technologies utilized 
     at designated seaports and the effect on the flow of commerce 
     at such seaports, as well as any recommendations for 
     improving the effectiveness of screening, scanning, and 
     inspection protocols and technologies utilized at designated 
     seaports;
       (E) a description and assessment of the outcome of any 
     security incident involving a foreign seaport designated 
     under the Container Security Initiative;
       (F) the rationale for the continuance of each port 
     designated under CSI;
       (G) a description of the potential for remote targeting to 
     decrease the number of personnel who are deployed at foreign 
     ports under CSI; and
       (H) a summary and assessment of the aggregate number and 
     extent of trade compliance lapses at each seaport designated 
     under the Container Security Initiative.
       (2) Updated report.--Not later than September 30, 2010, the 
     Secretary, acting through the Commissioner, shall, in 
     consultation with other appropriate government officials and 
     the Commercial Operations Advisory Committee, submit an 
     updated report to the appropriate congressional committees on 
     the effectiveness of, and the need for any improvements to, 
     the Container Security Initiative. The updated report shall 
     address each of the elements required to be included in the 
     report provided for under paragraph (1).
       (m) Authorization of Appropriations.--There are authorized 
     to be appropriated to the United States Customs and Border 
     Protection to carry out the provisions of this section--
       (1) $144,000,000 for fiscal year 2008;

[[Page 21307]]

       (2) $146,000,000 for fiscal year 2009; and
       (3) $153,300,000 for fiscal year 2010.

        Subtitle B--Customs-Trade Partnership Against Terrorism

     SEC. 211. ESTABLISHMENT.

       (a) Establishment.--The Secretary, acting through the 
     Commissioner, is authorized to establish a voluntary 
     government-private sector program (to be known as the 
     ``Customs-Trade Partnership Against Terrorism'' or ``C-
     TPAT'') to strengthen and improve the overall security of the 
     international supply chain and United States border security, 
     and to facilitate the movement of secure cargo through the 
     international supply chain, by providing benefits to 
     participants meeting or exceeding the program requirements. 
     Participants in C-TPAT shall include Tier 1 participants, 
     Tier 2 participants, and Tier 3 participants.
       (b) Minimum Security Requirements.--The Secretary, acting 
     through the Commissioner, shall review the minimum security 
     requirements of C-TPAT at least once every year and update 
     such requirements as necessary.

     SEC. 212. ELIGIBLE ENTITIES.

       Importers, customs brokers, forwarders, air, sea, land 
     carriers, contract logistics providers, and other entities in 
     the international supply chain and intermodal transportation 
     system are eligible to apply to voluntarily enter into 
     partnerships with the Department under C-TPAT.

     SEC. 213. MINIMUM REQUIREMENTS.

       An applicant seeking to participate in C-TPAT shall--
       (1) demonstrate a history of moving cargo in the 
     international supply chain;
       (2) conduct an assessment of its supply chain based upon 
     security criteria established by the Secretary, acting 
     through the Commissioner, including--
       (A) business partner requirements;
       (B) container security;
       (C) physical security and access controls;
       (D) personnel security;
       (E) procedural security;
       (F) security training and threat awareness; and
       (G) information technology security;
       (3) implement and maintain security measures and supply 
     chain security practices meeting security criteria 
     established by the Commissioner; and
       (4) meet all other requirements established by the 
     Commissioner, in consultation with the Commercial Operations 
     Advisory Committee.

     SEC. 214. TIER 1 PARTICIPANTS IN C-TPAT.

       (a) Benefits.--The Secretary, acting through the 
     Commissioner, shall offer limited benefits to a Tier 1 
     participant who has been certified in accordance with the 
     guidelines referred to in subsection (b). Such benefits may 
     include a reduction in the score assigned pursuant to the 
     Automated Targeting System of not greater than 20 percent of 
     the high-risk threshold established by the Secretary.
       (b) Guidelines.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary, acting through the 
     Commissioner, shall update the guidelines for certifying a C-
     TPAT participant's security measures and supply chain 
     security practices under this section. Such guidelines shall 
     include a background investigation and extensive 
     documentation review.
       (c) Timeframe.--To the extent practicable, the Secretary, 
     acting through the Commissioner, shall complete the Tier 1 
     certification process within 90 days of receipt of an 
     application for participation in C-TPAT.

     SEC. 215. TIER 2 PARTICIPANTS IN C-TPAT.

       (a) Validation.--The Secretary, acting through the 
     Commissioner, shall validate the security measures and supply 
     chain security practices of a Tier 1 participant in 
     accordance with the guidelines referred to in subsection (c). 
     Such validation shall include on-site assessments at 
     appropriate foreign locations utilized by the Tier 1 
     participant in its supply chain and shall, to the extent 
     practicable, be completed not later than 1 year after 
     certification as a Tier 1 participant.
       (b) Benefits.--The Secretary, acting through the 
     Commissioner, shall extend benefits to each C-TPAT 
     participant that has been validated as a Tier 2 participant 
     under this section, which may include--
       (1) reduced scores in the Automated Targeting System;
       (2) reduced examinations of cargo; and
       (3) priority searches of cargo.
       (c) Guidelines.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary, acting through the 
     Commissioner, shall develop a schedule and update the 
     guidelines for validating a participant's security measures 
     and supply chain security practices under this section.

     SEC. 216. TIER 3 PARTICIPANTS IN C-TPAT.

       (a) In General.--The Secretary, acting through the 
     Commissioner, shall establish a third tier of C-TPAT 
     participation that offers additional benefits to participants 
     who demonstrate a sustained commitment to maintaining 
     security measures and supply chain security practices that 
     exceed the guidelines established for validation as a Tier 2 
     participant in C-TPAT under section 215.
       (b) Criteria.--The Secretary, acting through the 
     Commissioner, shall designate criteria for validating a C-
     TPAT participant as a Tier 3 participant under this section. 
     Such criteria may include--
       (1) compliance with any additional guidelines established 
     by the Secretary that exceed the guidelines established 
     pursuant to section 215 of this Act for validating a C-TPAT 
     participant as a Tier 2 participant, particularly with 
     respect to controls over access to cargo throughout the 
     supply chain;
       (2) submission of additional information regarding cargo 
     prior to loading, as determined by the Secretary;
       (3) utilization of container security devices, 
     technologies, policies, or practices that meet standards and 
     criteria established by the Secretary; and
       (4) compliance with any other cargo requirements 
     established by the Secretary.
       (c) Benefits.--The Secretary, acting through the 
     Commissioner, in consultation with the Commercial Operations 
     Advisory Committee and the National Maritime Security 
     Advisory Committee, shall extend benefits to each C-TPAT 
     participant that has been validated as a Tier 3 participant 
     under this section, which may include--
       (1) the expedited release of a Tier 3 participant's cargo 
     in destination ports within the United States during all 
     threat levels designated by the Secretary;
       (2) further reduction in examinations of cargo;
       (3) priority for examinations of cargo; and
       (4) further reduction in the risk score assigned pursuant 
     to the Automated Targeting System; and
       (5) inclusion in joint incident management exercises, as 
     appropriate.
       (d) Deadline.--Not later than 2 years after the date of the 
     enactment of this Act, the Secretary, acting through the 
     Commissioner, shall designate appropriate criteria pursuant 
     to subsection (b) and provide benefits to validated Tier 3 
     participants pursuant to subsection (c).

     SEC. 217. CONSEQUENCES FOR LACK OF COMPLIANCE.

       (a) In General.--If at any time a C-TPAT participant's 
     security measures and supply chain security practices fail to 
     meet any of the requirements under this subtitle, the 
     Commissioner may deny the participant benefits otherwise 
     available under this subtitle, in whole or in part. The 
     Commissioner shall develop procedures that provide 
     appropriate protections to C-TPAT participants before 
     benefits are revoked. Such procedures may not limit the 
     ability of the Commissioner to take actions to protect the 
     national security of the United States.
       (b) False or Misleading Information.--If a C-TPAT 
     participant knowingly provides false or misleading 
     information to the Commissioner during the validation process 
     provided for under this subtitle, the Commissioner shall 
     suspend or expel the participant from C-TPAT for an 
     appropriate period of time. The Commissioner, after the 
     completion of the process under subsection (c), may publish 
     in the Federal Register a list of participants who have been 
     suspended or expelled from C-TPAT pursuant to this 
     subsection, and may make such list available to C-TPAT 
     participants.
       (c) Right of Appeal.--
       (1) In general.--A C-TPAT participant may appeal a decision 
     of the Commissioner pursuant to subsection (a). Such appeal 
     shall be filed with the Secretary not later than 90 days 
     after the date of the decision, and the Secretary shall issue 
     a determination not later than 180 days after the appeal is 
     filed.
       (2) Appeals of other decisions.--A C-TPAT participant may 
     appeal a decision of the Commissioner pursuant to subsection 
     (b). Such appeal shall be filed with the Secretary not later 
     than 30 days after the date of the decision, and the 
     Secretary shall issue a determination not later than 180 days 
     after the appeal is filed.

     SEC. 218. THIRD PARTY VALIDATIONS.

       (a) Plan.--The Secretary, acting through the Commissioner, 
     shall develop a plan to implement a 1-year voluntary pilot 
     program to test and assess the feasibility, costs, and 
     benefits of using third party entities to conduct validations 
     of C-TPAT participants.
       (b) Consultations.--Not later than 120 days after the date 
     of the enactment of this Act, after consulting with private 
     sector stakeholders, including the Commercial Operations 
     Advisory Committee, the Secretary shall submit a report to 
     the appropriate congressional committees on the plan 
     described in subsection (a).
       (c) Pilot Program.--
       (1) In general.--Not later than 1 year after the 
     consultations described in subsection (b), the Secretary 
     shall carry out the 1-year pilot program to conduct 
     validations of C-TPAT participants using third party entities 
     described in subsection (a).
       (2) Authority of the secretary.--The decision to validate a 
     C-TPAT participant is solely within the discretion of the 
     Secretary, or the Secretary's designee.
       (d) Certification of Third Party Entities.--The Secretary 
     shall certify a third party entity to conduct validations 
     under subsection (c) if the entity--
       (1) demonstrates to the satisfaction of the Secretary that 
     the entity has the ability to perform validations in 
     accordance with standard operating procedures and 
     requirements designated by the Secretary; and
       (2) agrees--
       (A) to perform validations in accordance with such standard 
     operating procedures and requirements (and updates to such 
     procedures and requirements); and
       (B) to maintain liability insurance coverage at policy 
     limits and in accordance with conditions to be established by 
     the Secretary; and
       (3) signs an agreement to protect all proprietary 
     information of C-TPAT participants with respect to which the 
     entity will conduct validations.
       (e) Information for Establishing Limits of Liability 
     Insurance.--A third party entity

[[Page 21308]]

     seeking a certificate under subsection (d) shall submit to 
     the Secretary necessary information for establishing the 
     limits of liability insurance required to be maintained by 
     the entity under this Act.
       (f) Additional Requirements.--The Secretary shall ensure 
     that--
       (1) any third party entity certified under this section 
     does not have--
       (A) any beneficial interest in or any direct or indirect 
     control over the C-TPAT participant for which the validation 
     services are performed; or
       (B) any other conflict of interest with respect to the C-
     TPAT participant; and
       (2) the C-TPAT participant has entered into a contract with 
     the third party entity under which the C-TPAT participant 
     agrees to pay all costs associated with the validation.
       (g) Monitoring.--
       (1) In general.--The Secretary shall regularly monitor and 
     inspect the operations of a third party entity conducting 
     validations under subsection (c) to ensure that the entity is 
     meeting the minimum standard operating procedures and 
     requirements for the validation of C-TPAT participants 
     established by the Secretary and all other applicable 
     requirements for validation services.
       (2) Revocation.--If the Secretary determines that a third 
     party entity is not meeting the minimum standard operating 
     procedures and requirements designated by the Secretary under 
     subsection (d)(1), the Secretary shall--
       (A) revoke the entity's certificate of conformance issued 
     under subsection (d)(1); and
       (B) review any validations conducted by the entity.
       (h) Limitation on Authority.--The Secretary may only grant 
     a C-TPAT validation by a third party entity pursuant to 
     subsection (c) if the C-TPAT participant voluntarily submits 
     to validation by such third party entity.
       (i) Report.--Not later than 30 days after the completion of 
     the pilot program conducted pursuant to subsection (c), the 
     Secretary shall submit a report to the appropriate 
     congressional committees that contains--
       (1) the results of the pilot program, including the extent 
     to which the pilot program ensured sufficient protection for 
     proprietary commercial information;
       (2) the cost and efficiency associated with validations 
     under the pilot program;
       (3) the impact of the pilot program on the rate of 
     validations conducted under C-TPAT;
       (4) any impact on national security of the pilot program; 
     and
       (5) any recommendations by the Secretary based upon the 
     results of the pilot program.

     SEC. 219. REVALIDATION.

       The Secretary, acting through the Commissioner, shall 
     develop and implement--
       (1) a revalidation process for Tier 2 and Tier 3 
     participants;
       (2) a framework based upon objective criteria for 
     identifying participants for periodic revalidation not less 
     frequently than once during each 4-year period following the 
     initial validation; and
       (3) an annual plan for revalidation that includes--
       (A) performance measures;
       (B) an assessment of the personnel needed to perform the 
     revalidations; and
       (C) the number of participants that will be revalidated 
     during the following year.

     SEC. 220. NONCONTAINERIZED CARGO.

       The Secretary, acting through the Commissioner, shall 
     consider the potential for participation in C-TPAT by 
     importers of noncontainerized cargoes that otherwise meet the 
     requirements under this subtitle.

     SEC. 221. C-TPAT PROGRAM MANAGEMENT.

       (a) In General.--The Secretary, acting through the 
     Commissioner, shall establish sufficient internal quality 
     controls and record management to support the management 
     systems of C-TPAT. In managing the program, the Secretary 
     shall ensure that the program includes:
       (1) Strategic plan.--A 5-year plan to identify outcome-
     based goals and performance measures of the program.
       (2) Annual plan.--An annual plan for each fiscal year 
     designed to match available resources to the projected 
     workload.
       (3) Standardized work program.--A standardized work program 
     to be used by agency personnel to carry out the 
     certifications, validations, and revalidations of 
     participants. The Secretary shall keep records and monitor 
     staff hours associated with the completion of each such 
     review.
       (b) Documentation of Reviews.--The Secretary, acting 
     through the Commissioner, shall maintain a record management 
     system to document determinations on the reviews of each C-
     TPAT participant, including certifications, validations, and 
     revalidations.
       (c) Confidential Information Safeguards.--In consultation 
     with the Commercial Operations Advisory Committee, the 
     Secretary, acting through the Commissioner, shall develop and 
     implement procedures to ensure the protection of confidential 
     data collected, stored, or shared with government agencies or 
     as part of the application, certification, validation, and 
     revalidation processes.
       (d) Resource Management Staffing Plan.--The Secretary, 
     acting through the Commissioner, shall--
       (1) develop a staffing plan to recruit and train staff 
     (including a formalized training program) to meet the 
     objectives identified in the strategic plan of the C-TPAT 
     program; and
       (2) provide cross-training in postincident trade resumption 
     for personnel who administer the C-TPAT program.
       (e) Report to Congress.--In connection with the President's 
     annual budget submission for the Department, the Secretary 
     shall report to the appropriate congressional committees on 
     the progress made by the Commissioner to certify, validate, 
     and revalidate C-TPAT participants. Such report shall be due 
     on the same date that the President's budget is submitted to 
     the Congress.

     SEC. 222. ADDITIONAL PERSONNEL.

       For fiscal years 2008 and 2009, the Commissioner shall 
     increase by not less than 50 the number of full-time 
     personnel engaged in the validation and revalidation of C-
     TPAT participants (over the number of such personnel on the 
     last day of the previous fiscal year), and shall provide 
     appropriate training and support to such additional 
     personnel.

     SEC. 223. AUTHORIZATION OF APPROPRIATIONS.

       (a) C-TPAT.--There are authorized to be appropriated to the 
     United States Customs and Border Protection to carry out the 
     provisions of sections 211 through 221 to remain available 
     until expended--
       (1) $65,000,000 for fiscal year 2008;
       (2) $72,000,000 for fiscal year 2009; and
       (3) $75,600,000 for fiscal year 2010.
       (b) Additional Personnel.--In addition to any amounts 
     otherwise appropriated to the United States Customs and 
     Border Protection, there are authorized to be appropriated 
     for the purpose of meeting the staffing requirement provided 
     for in section 222, to remain available until expended--
       (1) $8,500,000 for fiscal year 2008;
       (2) $17,600,000 for fiscal year 2009;
       (3) $19,000,000 for fiscal year 2010;
       (4) $20,000,000 for fiscal year 2011; and
       (5) $21,000,000 for fiscal year 2012.

                  Subtitle C--Miscellaneous Provisions

     SEC. 231. PILOT INTEGRATED SCANNING SYSTEM.

       (a) Designations.--Not later than 90 days after the date of 
     the enactment of this Act, the Secretary shall designate 3 
     foreign seaports through which containers pass or are 
     transshipped to the United States for the establishment of 
     pilot integrated scanning systems that couple nonintrusive 
     imaging equipment and radiation detection equipment. In 
     making the designations under this paragraph, the Secretary 
     shall consider 3 distinct ports with unique features and 
     differing levels of trade volume.
       (b) Coordination.--The Secretary shall--
       (1) coordinate with the Secretary of Energy, as necessary, 
     to provide radiation detection equipment through the 
     Department of Energy's Second Line of Defense and Megaports 
     programs; or
       (2) work with the private sector or, when possible, host 
     governments to obtain radiation detection equipment that 
     meets both the Department's and the Department of Energy's 
     technical specifications for such equipment.
       (c) Pilot System Implementation.--Not later than 1 year 
     after the date of the enactment of this Act, the Secretary 
     shall achieve a full-scale implementation of the pilot 
     integrated scanning system at the ports designated under 
     subsection (a), which--
       (1) shall scan all containers destined for the United 
     States that are loaded in such ports;
       (2) shall electronically transmit the images and 
     information to appropriate United States Government personnel 
     in the country in which the port is located or in the United 
     States for evaluation and analysis;
       (3) shall resolve every radiation alarm according to 
     established Department procedures;
       (4) shall utilize the information collected to enhance the 
     Automated Targeting System or other relevant programs;
       (5) shall store the information for later retrieval and 
     analysis; and
       (6) may provide an automated notification of questionable 
     or high-risk cargo as a trigger for further inspection by 
     appropriately trained personnel.
       (d) Report.--Not later than 180 days after achieving full-
     scale implementation under subsection (c), the Secretary, in 
     consultation with the Secretary of State and, as appropriate, 
     the Secretary of Energy, shall submit a report to the 
     appropriate congressional committees, that includes--
       (1) an evaluation of the lessons derived from the pilot 
     system implemented under this subsection;
       (2) an analysis of the efficacy of the Automated Targeting 
     System or other relevant programs in utilizing the images 
     captured to examine high-risk containers;
       (3) an evaluation of the effectiveness of the integrated 
     scanning system in detecting shielded and unshielded nuclear 
     and radiological material;
       (4) an evaluation of software and other technologies that 
     are capable of automatically identifying potential anomalies 
     in scanned containers; and
       (5) an analysis of the need and feasibility of expanding 
     the integrated scanning system to other container security 
     initiative ports, including--
       (A) an analysis of the infrastructure requirements;
       (B) a projection of the effect on current average 
     processing speed of containerized cargo;
       (C) an evaluation of the scalability of the system to meet 
     both current and future forecasted trade flows;
       (D) the ability of the system to automatically maintain and 
     catalog appropriate data for reference and analysis in the 
     event of a transportation disruption;
       (E) an analysis of requirements, including costs, to 
     install and maintain an integrated scanning system;

[[Page 21309]]

       (F) the ability of administering personnel to efficiently 
     manage and utilize the data produced by a nonintrusive 
     scanning system;
       (G) the ability to safeguard commercial data generated by, 
     or submitted to, a nonintrusive scanning system; and
       (H) an assessment of the reliability of currently available 
     technology to implement an integrated scanning system.

     SEC. 232. SCREENING AND SCANNING OF CARGO CONTAINERS.

       (a) One Hundred Percent Screening of Cargo Containers and 
     100 Percent Scanning of High-Risk Containers.--
       (1) Screening of cargo containers.--The Secretary shall 
     ensure that 100 percent of the cargo containers originating 
     outside the United States and unloaded at a United States 
     seaport undergo a screening to identify high-risk containers.
       (2) Scanning of high-risk containers.--The Secretary shall 
     ensure that 100 percent of the containers that have been 
     identified as high-risk under paragraph (1), or through other 
     means, are scanned or searched before such containers leave a 
     United States seaport facility.
       (b) Full-Scale Implementation.--The Secretary, in 
     coordination with the Secretary of Energy and foreign 
     partners, as appropriate, shall ensure integrated scanning 
     systems are fully deployed to scan, using nonintrusive 
     imaging equipment and radiation detection equipment, all 
     containers entering the United States before such containers 
     arrive in the United States as soon as possible, but not 
     before the Secretary determines that the integrated scanning 
     system--
       (1) meets the requirements set forth in section 231(c);
       (2) has a sufficiently low false alarm rate for use in the 
     supply chain;
       (3) is capable of being deployed and operated at ports 
     overseas;
       (4) is capable of integrating, as necessary, with existing 
     systems;
       (5) does not significantly impact trade capacity and flow 
     of cargo at foreign or United States ports; and
       (6) provides an automated notification of questionable or 
     high-risk cargo as a trigger for further inspection by 
     appropriately trained personnel.
       (c) Report.--Not later than 6 months after the submission 
     of a report under section 231(d), and every 6 months 
     thereafter, the Secretary shall submit a report to the 
     appropriate congressional committees describing the status of 
     full-scale deployment under subsection (b) and the cost of 
     deploying the system at each foreign port at which the 
     integrated scanning systems are deployed.

     SEC. 233. INTERNATIONAL COOPERATION AND COORDINATION.

       (a) Inspection Technology and Training.--
       (1) In general.--The Secretary, in coordination with the 
     Secretary of State, the Secretary of Energy, and appropriate 
     representatives of other Federal agencies, may provide 
     technical assistance, equipment, and training to facilitate 
     the implementation of supply chain security measures at ports 
     designated under the Container Security Initiative.
       (2) Acquisition and training.--Unless otherwise prohibited 
     by law, the Secretary may--
       (A) lease, loan, provide, or otherwise assist in the 
     deployment of nonintrusive inspection and radiation detection 
     equipment at foreign land and sea ports under such terms and 
     conditions as the Secretary prescribes, including 
     nonreimbursable loans or the transfer of ownership of 
     equipment; and
       (B) provide training and technical assistance for domestic 
     or foreign personnel responsible for operating or maintaining 
     such equipment.
       (b) Actions and Assistance for Foreign Ports and United 
     States Territories.--Section 70110 of title 46, United States 
     Code, is amended--
       (1) by striking the section header and inserting the 
     following:

     ``Sec. 70110. Actions and assistance for foreign ports and 
       United States territories''; and

       (2) by adding at the end the following:
       ``(e) Assistance for Foreign Ports and United States 
     Territories.--
       ``(1) In general.--The Secretary, in consultation with the 
     Secretary of Transportation, the Secretary of State, and the 
     Secretary of Energy, shall identify assistance programs that 
     could facilitate implementation of port security 
     antiterrorism measures in foreign countries and territories 
     of the United States. The Secretary shall establish a program 
     to utilize the programs that are capable of implementing port 
     security antiterrorism measures at ports in foreign countries 
     and territories of the United States that the Secretary finds 
     to lack effective antiterrorism measures.
       ``(2) Caribbean basin.--The Secretary, in coordination with 
     the Secretary of State and in consultation with the 
     Organization of American States and the Commandant of the 
     Coast Guard, shall place particular emphasis on utilizing 
     programs to facilitate the implementation of port security 
     antiterrorism measures at the ports located in the Caribbean 
     Basin, as such ports pose unique security and safety threats 
     to the United States due to--
       ``(A) the strategic location of such ports between South 
     America and the United States;
       ``(B) the relative openness of such ports; and
       ``(C) the significant number of shipments of narcotics to 
     the United States that are moved through such ports.''.
       (c) Report on Security at Ports in the Caribbean Basin.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act, the Comptroller General of the 
     United States shall submit a report to the appropriate 
     congressional committees on the security of ports in the 
     Caribbean Basin.
       (2) Contents.--The report submitted under paragraph (1)--
       (A) shall include--
       (i) 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;
       (ii) an estimate of the number of ports in the Caribbean 
     Basin that will not be secured by January 1, 2007;
       (iii) 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; and
       (iv) an assessment of the additional resources and program 
     changes that are necessary to maximize security at ports in 
     the Caribbean Basin; and
       (B) may be submitted in both classified and redacted 
     formats.
       (d) Clerical Amendment.--The chapter analysis for chapter 
     701 of title 46, United States Code, is amended by striking 
     the item relating to section 70110 and inserting the 
     following:

``70110. Actions and assistance for foreign ports and United States 
              territories.''.

     SEC. 234. FOREIGN PORT ASSESSMENTS.

       Section 70108 of title 46, United States Code, is amended 
     by adding at the end the following:
       ``(d) Periodic Reassessment.--The Secretary, acting through 
     the Commandant of the Coast Guard, shall reassess the 
     effectiveness of antiterrorism measures maintained at ports 
     as described under subsection (a) and of procedures described 
     in subsection (b) not less than once every 3 years.''.

     SEC. 235. PILOT PROGRAM TO IMPROVE THE SECURITY OF EMPTY 
                   CONTAINERS.

       (a) In General.--The Secretary shall conduct a 1-year pilot 
     program to assess the risk posed by and improve the security 
     of empty containers at United States seaports to ensure the 
     safe and secure delivery of cargo and to prevent potential 
     acts of terrorism involving such containers. The pilot 
     program shall include the use of visual searches of empty 
     containers at United States seaports.
       (b) Report.--Not later than 90 days after the completion of 
     the pilot program under paragraph (1), the Secretary shall 
     prepare and submit to the appropriate congressional 
     committees a report that contains--
       (1) the results of the pilot program; and
       (2) the determination of the Secretary on whether to expand 
     the pilot program.

     SEC. 236. INFORMATION SHARING RELATING TO SUPPLY CHAIN 
                   SECURITY COOPERATION.

       (a) Purposes.--The purposes of this section are--
       (1) to establish continuing liaison and to provide for 
     supply chain security cooperation between Department and the 
     private sector; and
       (2) to provide for regular and timely interchange of 
     information between the private sector and the Department 
     concerning developments and security risks in the supply 
     chain environment.
       (b) System.--The Secretary shall develop a system to 
     collect from and share appropriate risk information related 
     to the supply chain with the private sector entities 
     determined appropriate by the Secretary.
       (c) Consultation.--In developing the system under 
     subsection (b), the Secretary shall consult with the 
     Commercial Operations Advisory Committee and a broad range of 
     public and private sector entities likely to utilize the 
     system, including importers, exporters, carriers, customs 
     brokers, and freight forwarders, among other parties.
       (d) Independently Obtained Information.--Nothing in this 
     section shall be construed to limit or otherwise affect the 
     ability of a Federal, State, or local government entity, 
     under applicable law, to obtain supply chain security 
     information, including any information lawfully and properly 
     disclosed generally or broadly to the public and to use such 
     information in any manner permitted by law.
       (e) Authority to Issue Warnings.--The Secretary may provide 
     advisories, alerts, and warnings to relevant companies, 
     targeted sectors, other governmental entities, or the general 
     public regarding potential risks to the supply chain as 
     appropriate. In issuing a warning, the Secretary shall take 
     appropriate actions to protect from disclosure--
       (1) the source of any voluntarily submitted supply chain 
     security information that forms the basis for the warning; 
     and
       (2) information that is proprietary, business sensitive, 
     relates specifically to the submitting person or entity, or 
     is otherwise not appropriately in the public domain.

                       TITLE III--ADMINISTRATION

     SEC. 301. OFFICE OF CARGO SECURITY POLICY.

       (a) Establishment.--Subtitle C of title IV of the Homeland 
     Security Act of 2002 (6 U.S.C. 231 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 431. OFFICE OF CARGO SECURITY POLICY.

       ``(a) Establishment.--There is established within the 
     Department an Office of Cargo Security Policy (referred to in 
     this section as the `Office').

[[Page 21310]]

       ``(b) Purpose.--The Office shall--
       ``(1) coordinate all Department policies relating to cargo 
     security; and
       ``(2) consult with stakeholders and coordinate with other 
     Federal agencies in the establishment of standards and 
     regulations and to promote best practices.
       ``(c) Director.--
       ``(1) Appointment.--The Office shall be headed by a 
     Director, who shall--
       ``(A) be appointed by the Secretary; and
       ``(B) report to the Assistant Secretary for Policy.
       ``(2) Responsibilities.--The Director shall--
       ``(A) advise the Assistant Secretary for Policy in the 
     development of Department-wide policies regarding cargo 
     security;
       ``(B) coordinate all policies relating to cargo security 
     among the agencies and offices within the Department relating 
     to cargo security; and
       ``(C) coordinate the cargo security policies of the 
     Department with the policies of other executive agencies.''.
       (b) Designation of Liaison Office of Department of State.--
     The Secretary of State shall designate a liaison office 
     within the Department of State to assist the Secretary, as 
     appropriate, in negotiating cargo security-related 
     international agreements.
       (c) Rule of Construction.--Nothing in this section shall be 
     construed to affect--
       (1) the authorities, functions, or capabilities of the 
     Coast Guard to perform its missions; or
       (2) the requirement under section 888 of the Homeland 
     Security Act (6 U.S.C. 468) that those authorities, 
     functions, and capabilities be maintained intact.
       (d) Clerical Amendment.--The table of contents of the 
     Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is 
     amended by inserting after the item relating to section 430 
     the following:

``Sec. 431. Office of Cargo Security Policy''.

     SEC. 302. REAUTHORIZATION OF HOMELAND SECURITY SCIENCE AND 
                   TECHNOLOGY ADVISORY COMMITTEE.

       (a) In General.--Section 311(j) of the Homeland Security 
     Act of 2002 (6 U.S.C. 191(j)) is amended by striking ``3 
     years after the effective date of this Act'' and inserting 
     ``on December 31, 2008''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall be effective as if enacted on the date of the enactment 
     of the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.).
       (c) Advisory Committee.--The Under Secretary for Science 
     and Technology shall utilize the Homeland Security Science 
     and Technology Advisory Committee, as appropriate, to provide 
     outside expertise in advancing cargo security technology.

     SEC. 303. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION EFFORTS 
                   IN FURTHERANCE OF MARITIME AND CARGO SECURITY.

       (a) In General.--The Secretary shall--
       (1) direct research, development, testing, and evaluation 
     efforts in furtherance of maritime and cargo security;
       (2) coordinate with public and private sector entities to 
     develop and test technologies, and process innovations in 
     furtherance of these objectives; and
       (3) evaluate such technologies.
       (b) Coordination.--The Secretary, in coordination with the 
     Under Secretary for Science and Technology, the Assistant 
     Secretary for Policy, the Commandant of the Coast Guard, the 
     Director for Domestic Nuclear Detection, the Chief Financial 
     Officer, and the heads of other appropriate offices or 
     entities of the Department, shall ensure that--
       (1) research, development, testing, and evaluation efforts 
     funded by the Department in furtherance of maritime and cargo 
     security are coordinated within the Department and with other 
     appropriate Federal agencies to avoid duplication of efforts; 
     and
       (2) the results of such efforts are shared throughout the 
     Department and with other Federal, State, and local agencies, 
     as appropriate.

                TITLE IV--AGENCY RESOURCES AND OVERSIGHT

     SEC. 401. TRADE AND CUSTOMS REVENUE FUNCTIONS OF THE 
                   DEPARTMENT.

       (a) Trade and Customs Revenue Functions.--
       (1) Designation of appropriate official.--The Secretary 
     shall designate an appropriate senior official in the office 
     of the Secretary who shall--
       (A) ensure that the trade and customs revenue functions of 
     the Department are coordinated within the Department and with 
     other Federal departments and agencies, and that the impact 
     on legitimate trade is taken into account in any action 
     impacting the functions; and
       (B) monitor and report to Congress on the Department's 
     mandate to ensure that the trade and customs revenue 
     functions of the Department are not diminished, including how 
     spending, operations, and personnel related to these 
     functions have kept pace with the level of trade entering the 
     United States.
       (2) Director of trade policy.--There shall be a Director of 
     Trade Policy (in this subsection referred to as the 
     ``Director''), who shall be subject to the direction and 
     control of the official designated pursuant to paragraph (1). 
     The Director shall--
       (A) advise the official designated pursuant to paragraph 
     (1) regarding all aspects of Department policies relating to 
     the trade and customs revenue functions of the Department;
       (B) coordinate the development of Department-wide policies 
     regarding trade and customs revenue functions and trade 
     facilitation; and
       (C) coordinate the trade and customs revenue-related 
     policies of the Department with the policies of other Federal 
     departments and agencies.
       (b) Study; Report.--
       (1) In general.--The Comptroller General of the United 
     States shall conduct a study evaluating the extent to which 
     the Department of Homeland Security is meeting its 
     obligations under section 412(b) of the Homeland Security Act 
     of 2002 (6 U.S.C. 212(b)) with respect to the maintenance of 
     customs revenue functions.
       (2) Analysis.--The study shall include an analysis of--
       (A) the extent to which the customs revenue functions 
     carried out by the former United States Customs Service have 
     been consolidated with other functions of the Department 
     (including the assignment of noncustoms revenue functions to 
     personnel responsible for customs revenue collection), 
     discontinued, or diminished following the transfer of the 
     United States Customs Service to the Department;
       (B) the extent to which staffing levels or resources 
     attributable to customs revenue functions have decreased 
     since the transfer of the United States Customs Service to 
     the Department; and
       (C) the extent to which the management structure created by 
     the Department ensures effective trade facilitation and 
     customs revenue collection.
       (3) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to the appropriate congressional committees a report on the 
     results of the study conducted under subsection (a).
       (4) Maintenance of functions.--Not later than September 30, 
     2007, the Secretary shall ensure that the requirements of 
     section 412(b) of the Homeland Security Act of 2002 (6 U.S.C. 
     212(b)) are fully satisfied and shall report to the Committee 
     on Finance of the Senate and the Committee on Ways and Means 
     of the House of Representatives regarding implementation of 
     this paragraph.
       (5) Definition.--In this section, the term ``customs 
     revenue functions'' means the functions described in section 
     412(b)(2) of the Homeland Security Act of 2002 (6 U.S.C. 
     212(b)(2)).
       (c) Consultation on Trade and Customs Revenue Functions.--
       (1) Business community consultations.--The Secretary shall 
     consult with representatives of the business community 
     involved in international trade, including seeking the advice 
     and recommendations of the Commercial Operations Advisory 
     Committee, on Department policies and actions that have a 
     significant impact on international trade and customs revenue 
     functions.
       (2) Congressional consultation and notification.--
       (A) In general.--Subject to subparagraph (B), the Secretary 
     shall notify the appropriate congressional committees not 
     later than 30 days prior to the finalization of any 
     Department policies, initiatives, or actions that will have a 
     major impact on trade and customs revenue functions. Such 
     notifications shall include a description of the proposed 
     policies, initiatives or actions and any comments or 
     recommendations provided by the Commercial Operations 
     Advisory Committee and other relevant groups regarding the 
     proposed policies, initiatives or actions.
       (B) Exception.--If the Secretary determines that it is 
     important to the national security interest of the United 
     States to finalize any Department policies, initiatives, or 
     actions prior to the consultation described in subparagraph 
     (A), the Secretary shall--
       (i) notify and provide any recommendations of the 
     Commercial Operations Advisory Committee received to the 
     appropriate congressional committees not later than 45 days 
     after the date on which the policies, initiatives, or actions 
     are finalized; and
       (ii) to the extent appropriate, modify the policies, 
     initiatives, or actions based upon the consultations with the 
     appropriate congressional committees.
       (d) Notification of Reorganization of Customs Revenue 
     Functions.--
       (1) In general.--Not less than 45 days prior to any change 
     in the organization of any of the customs revenue functions 
     of the Department, the Secretary shall notify the Committee 
     on Appropriations, the Committee on Finance, and the 
     Committee on Homeland Security and Governmental Affairs of 
     the Senate, and the Committee on Appropriations, the 
     Committee on Homeland Security, and the Committee on Ways and 
     Means of the House of Representatives of the specific assets, 
     functions, or personnel to be transferred as part of such 
     reorganization, and the reason for such transfer. The 
     notification shall also include--
       (A) an explanation of how trade enforcement functions will 
     be impacted by the reorganization;
       (B) an explanation of how the reorganization meets the 
     requirements of section 412(b) of the Homeland Security Act 
     of 2002 (6 U.S.C. 212(b)) that the Department not diminish 
     the customs revenue and trade facilitation functions formerly 
     performed by the United States Customs Service; and
       (C) any comments or recommendations provided by the 
     Commercial Operations Advisory Committee regarding such 
     reorganization.
       (2) Analysis.--Any congressional committee referred to in 
     paragraph (1) may request that the Commercial Operations 
     Advisory Committee provide a report to the committee 
     analyzing the impact of the reorganization and providing any 
     recommendations for modifying the reorganization.

[[Page 21311]]

       (3) Report.--Not later than 1 year after any reorganization 
     referred to in paragraph (1) takes place, the Secretary, in 
     consultation with the Commercial Operations Advisory 
     Committee, shall submit a report to the Committee on Finance 
     of the Senate and the Committee on Ways and Means of the 
     House of Representatives. Such report shall include an 
     assessment of the impact of, and any suggested modifications 
     to, such reorganization.

     SEC. 402. OFFICE OF INTERNATIONAL TRADE; OVERSIGHT.

       Section 2 of the Act of March 3, 1927 (44 Stat. 1381, 
     chapter 348; 19 U.S.C. 2072), is amended by adding at the end 
     the following:
       ``(d) Office of International Trade.--
       ``(1) Establishment.--There is established within the 
     United States Customs and Border Protection an Office of 
     International Trade that shall be headed by an Assistant 
     Commissioner.
       ``(2) Transfer of assets, functions, and personnel; 
     elimination of offices.--
       ``(A) Office of strategic trade.--
       ``(i) In general.--Not later than 90 days after the date of 
     the enactment of the SAFE Port Act, the Commissioner shall 
     transfer the assets, functions, and personnel of the Office 
     of Strategic Trade to the Office of International Trade 
     established pursuant to paragraph (1) and the Office of 
     Strategic Trade shall be abolished.
       ``(ii) Limitation on funds.--No funds appropriated to the 
     United States Customs and Border Protection may be used to 
     transfer the assets, functions, or personnel of the Office of 
     Strategic Trade, to an office other than the office 
     established pursuant to paragraph (1) of this subsection.
       ``(B) Office of regulations and rulings.--
       ``(i) In general.--Not later than 90 days after the date of 
     the enactment of the SAFE Port Act, the Commissioner shall 
     transfer the assets, functions, and personnel of the Office 
     of Regulations and Rulings to the Office of International 
     Trade established pursuant to paragraph (1) and the Office of 
     Regulations and Rulings shall be abolished.
       ``(ii) Limitation on funds.--No funds appropriated to the 
     United States Customs and Border Protection may be used to 
     transfer the assets, functions, or personnel of the Office of 
     Regulations and Rulings, to an office other than the office 
     established pursuant to paragraph (1) of this subsection.
       ``(C) Other transfers.--The Commissioner is authorized to 
     transfer any other assets, functions, or personnel within the 
     United States Customs and Border Protection to the Office of 
     International Trade established pursuant to paragraph (1). 
     Not less than 45 days prior to each such transfer, the 
     Commissioner shall notify the Committee on Appropriations, 
     the Committee on Finance, and the Committee on Homeland 
     Security and Governmental Affairs of the Senate and the 
     Committee on Appropriations, the Committee on Homeland 
     Security, and the Committee on Ways and Means of the House of 
     Representatives of the specific assets, functions, or 
     personnel to be transferred, and the reason for such 
     transfer. Such notification shall also include--
       ``(i) an explanation of how trade enforcement functions 
     will be impacted by the reorganization;
       ``(ii) an explanation of how the reorganization meets the 
     requirements of section 412(b) of the Homeland Security Act 
     of 2002 (6 U.S.C. 212(b)) that the Department of Homeland 
     Security not diminish the customs revenue and trade 
     facilitation functions formerly performed by the United 
     States Customs Service; and
       ``(iii) any comments or recommendations provided by the 
     Commercial Operations Advisory Committee regarding such 
     reorganization.
       ``(D) Report.--Not later than 1 year after any 
     reorganization pursuant to subparagraph (C) takes place, the 
     Commissioner, in consultation with the Commercial Operations 
     Advisory Committee, shall report to the Committee on Finance 
     of the Senate and the Committee on Ways and Means of the 
     House of Representatives. Such report shall include an 
     assessment of the impact of, and any suggested modifications 
     to, such reorganization.
       ``(E) Limitation on authority.--Notwithstanding any other 
     provision of law, the Commissioner shall not transfer any 
     assets, functions, or personnel from United States ports of 
     entry, associated with the enforcement of laws relating to 
     trade in textiles and apparel, to the Office of International 
     Trade established pursuant to paragraph (1), until the 
     following conditions are met:
       ``(i) The Commissioner submits the initial Resource 
     Allocation Model required by section 301(h) of the Customs 
     and Procedural Reform and Simplification Act of 1978 (19 
     U.S.C. 2075) and includes in such Resource Allocation Model a 
     section addressing the allocation of assets, functions, and 
     personnel associated with the enforcement of laws relating to 
     trade in textiles and apparel.
       ``(ii) The Commissioner consults with the Committee on 
     Finance of the Senate and the Committee on Ways and Means of 
     the House of Representatives regarding any subsequent 
     transfer of assets, functions, or personnel associated with 
     the enforcement of laws relating to trade in textiles and 
     apparel, not less than 45 days prior to such transfer.
       ``(F) Limitation on appropriations.--No funds appropriated 
     to the United States Customs and Border Protection may be 
     used to transfer the assets, functions, or personnel 
     associated with the enforcement of laws relating to trade in 
     textiles and apparel, before the Commissioner consults with 
     the congressional committees pursuant to subparagraph 
     (E)(ii).
       ``(e) International Trade Committee.--
       ``(1) Establishment.--The Commissioner shall establish an 
     International Trade Committee, to be chaired by the 
     Commissioner, and to include the Deputy Commissioner, the 
     Assistant Commissioner in the Office of Field Operations, the 
     Assistant Commissioner in the Office of Finance, the 
     Assistant Commissioner in the Office of International 
     Affairs, the Assistant Commissioner in the Office of 
     International Trade, the Director of the Office of Trade 
     Relations, and any other official determined by the 
     Commissioner to be important to the work of the Committee.
       ``(2) Responsibilities.--The International Trade Committee 
     shall--
       ``(A) be responsible for advising the Commissioner with 
     respect to the commercial customs and trade facilitation 
     functions of the United States Customs and Border Protection;
       ``(B) assist the Commissioner in coordinating with the 
     Secretary regarding commercial customs and trade facilitation 
     functions; and
       ``(C) oversee the operation of all programs and systems 
     that are involved in the assessment and collection of duties, 
     bonds, and other charges or penalties associated with the 
     entry of cargo into the United States, or the export of cargo 
     from the United States, including the administration of duty 
     drawback and the collection of antidumping and countervailing 
     duties.
       ``(3) Annual report.--Not later than 30 days after the end 
     of each fiscal year, the International Trade Committee shall 
     submit a report to the Committee on Finance of the Senate and 
     the Committee on Ways and Means of the House of 
     Representatives. The report shall--
       ``(A) detail the activities of the International Trade 
     Committee during the preceding fiscal year; and
       ``(B) identify the priorities of the International Trade 
     Committee for the fiscal year in which the report is filed.
       ``(f) Definition.--In this section:
       ``(1) Commissioner.--The term `Commissioner' means the 
     Commissioner responsible for the United States Customs and 
     Border Protection in the Department of Homeland Security.
       ``(2) Commercial operations advisory committee.--The term 
     `Commercial Operations Advisory Committee' means the Advisory 
     Committee established pursuant to section 9503(c) of the 
     Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 2071 
     note) or any successor committee.''.

     SEC. 403. RESOURCES.

       Section 301 of the Customs Procedural Reform and 
     Simplification Act of 1978 (19 U.S.C. 2075) is amended by 
     adding at the end the following:
       ``(h) Resource Allocation Model.--
       ``(1) Resource allocation model.--Not later than June 30, 
     2007, and every 2 years thereafter, the Commissioner shall 
     prepare and submit to the Committee on Finance of the Senate 
     and the Committee on Ways and Means of the House of 
     Representatives a Resource Allocation Model to determine the 
     optimal staffing levels required to carry out the commercial 
     operations of United States Customs and Border Protection, 
     including commercial inspection and release of cargo and the 
     revenue functions described in section 412(b)(2) of the 
     Homeland Security Act of 2002 (6 U.S.C. 212(b)(2)). The Model 
     shall comply with the requirements of section 412(b)(1) of 
     such Act and shall take into account previous staffing 
     models, historic and projected trade volumes, and trends. The 
     Resource Allocation Model shall apply both risk-based and 
     random sampling approaches for determining adequate staffing 
     needs for priority trade functions, including--
       ``(A) performing revenue functions;
       ``(B) enforcing antidumping and countervailing duty laws;
       ``(C) protecting intellectual property rights;
       ``(D) enforcing provisions of law relating to trade in 
     textiles and apparel;
       ``(E) conducting agricultural inspections;
       ``(F) enforcing fines, penalties, and forfeitures; and
       ``(G) facilitating trade.
       ``(2) Personnel.--
       ``(A) In general.--Not later than September 30, 2007, the 
     Commissioner shall ensure that the requirements of section 
     412(b) of the Homeland Security Act of 2002 (6 U.S.C. 212(b)) 
     are fully satisfied and shall report to the Committee on 
     Finance of the Senate and the Committee on Ways and Means of 
     the House of Representatives regarding the implementation of 
     this subparagraph.
       ``(B) Customs and border protection officers.--The initial 
     Resource Allocation Model required pursuant to paragraph (1) 
     shall provide for the hiring of a minimum of 200 additional 
     Customs and Border Protection Officers per year for each of 
     the fiscal years 2008 through 2012. The Commissioner shall 
     hire such additional Officers subject to the appropriation of 
     funds to pay for the salaries and expenses of such Officers. 
     In assigning the 1,000 additional Officers authorized by this 
     subparagraph, the Commissioner shall--
       ``(i) consider the volume of trade and the incidence of 
     nonvoluntarily disclosed customs and trade law violations in 
     addition to security priorities among United States ports of 
     entry; and
       ``(ii) before October 1, 2010, assign at least 10 
     additional Officers among each service port and the ports of 
     entry serviced by such service port, except as provided in 
     subparagraph (C).
       ``(C) Assignment.--In assigning such Officers pursuant to 
     subparagraph (B), the Commissioner shall consult with the 
     port directors of each service port and the other ports of 
     entry serviced by such service port. The Commissioner shall 
     not assign an Officer to a port of entry

[[Page 21312]]

     pursuant to subparagraph (B)(ii) if the port director of the 
     service port that services such port of entry certifies to 
     the Commissioner that an additional Officer is not needed at 
     such port of entry.
       ``(D) Report.--Not later than 60 days after the beginning 
     of each of the fiscal years 2008 through 2012, the 
     Commissioner shall submit a report to the Committee on 
     Finance of the Senate, the Committee on Homeland Security and 
     Governmental Affairs of the Senate, the Committee on Homeland 
     Security of the House of Representatives, and the Committee 
     on Ways and Means of the House of Representatives, that 
     describes how the additional Officers authorized under 
     subparagraph (B) will be allocated among the ports of entry 
     in the United States in accordance with subparagraph (C).
       ``(3) Authorization of appropriations.--In addition to any 
     monies hereafter appropriated to United States Customs and 
     Border Protection in the Department of Homeland Security, 
     there are authorized to be appropriated for the purpose of 
     meeting the requirements of paragraph (2)(B), to remain 
     available until expended--
       ``(A) $36,000,000 for fiscal year 2008;
       ``(B) $75,000,000 for fiscal year 2009;
       ``(C) $118,000,000 for fiscal year 2010;
       ``(D) $165,000,000 for fiscal year 2011; and
       ``(E) $217,000,000 for fiscal year 2012.
       ``(4) Report.--Not later than 30 days after the end of each 
     fiscal year, the Commissioner shall report to the Committee 
     on Finance of the Senate and the Committee on Ways and Means 
     of the House of Representatives on the resources directed to 
     commercial and trade facilitation functions within the Office 
     of Field Operations for the preceding fiscal year. Such 
     information shall be reported for each category of personnel 
     within the Office of Field Operations.
       ``(5) Regulations to implement trade agreements.--Not later 
     than 30 days after the date of the enactment of the SAFE Port 
     Act, the Commissioner shall designate and maintain not less 
     than 5 attorneys within the Office of International Trade 
     established pursuant to section 2 of the Act of March 3, 1927 
     (44 Stat. 1381, chapter 348; 19 U.S.C. 2072), with 
     responsibility for the prompt development and promulgation of 
     regulations necessary to implement any trade agreement 
     entered into by the United States, in addition to any other 
     responsibilities assigned by the Commissioner.
       ``(6) Definition.--In this subsection, the term 
     `Commissioner' means the Commissioner responsible for United 
     States Customs and Border Protection in the Department of 
     Homeland Security.''.

     SEC. 404. NEGOTIATIONS.

       Section 629 of the Tariff Act of 1930 (19 U.S.C. 1629) is 
     amended by adding at the end the following:
       ``(h) Customs Procedures and Commitments.--
       ``(1) In general.--The Secretary of Homeland Security, the 
     United States Trade Representative, and other appropriate 
     Federal officials shall work through appropriate 
     international organizations including the World Customs 
     Organization (WCO), the World Trade Organization (WTO), the 
     International Maritime Organization, and the Asia-Pacific 
     Economic Cooperation, to align, to the extent practicable, 
     customs procedures, standards, requirements, and commitments 
     in order to facilitate the efficient flow of international 
     trade.
       ``(2) United states trade representative.--
       ``(A) In general.--The United States Trade Representative 
     shall seek commitments in negotiations in the WTO regarding 
     the articles of GATT 1994 that are described in subparagraph 
     (B) that make progress in achieving--
       ``(i) harmonization of import and export data collected by 
     WTO members for customs purposes, to the extent practicable;
       ``(ii) enhanced procedural fairness and transparency with 
     respect to the regulation of imports and exports by WTO 
     members;
       ``(iii) transparent standards for the efficient release of 
     cargo by WTO members, to the extent practicable; and
       ``(iv) the protection of confidential commercial data.
       ``(B) Articles described.--The articles of the GATT 1994 
     described in this subparagraph are the following:
       ``(i) Article V (relating to transit).
       ``(ii) Article VIII (relating to fees and formalities 
     associated with importation and exportation).
       ``(iii) Article X (relating to publication and 
     administration of trade regulations).
       ``(C) GATT 1994.--The term `GATT 1994' means the General 
     Agreement on Tariff and Trade annexed to the WTO Agreement.
       ``(3) Customs.--The Secretary of Homeland Security, acting 
     through the Commissioner and in consultation with the United 
     States Trade Representative, shall work with the WCO to 
     facilitate the efficient flow of international trade, taking 
     into account existing international agreements and the 
     negotiating objectives of the WTO. The Commissioner shall 
     work to--
       ``(A) harmonize, to the extent practicable, import data 
     collected by WCO members for customs purposes;
       ``(B) automate and harmonize, to the extent practicable, 
     the collection and storage of commercial data by WCO members;
       ``(C) develop, to the extent practicable, transparent 
     standards for the release of cargo by WCO members;
       ``(D) develop and harmonize, to the extent practicable, 
     standards, technologies, and protocols for physical or 
     nonintrusive examinations that will facilitate the efficient 
     flow of international trade; and
       ``(E) ensure the protection of confidential commercial 
     data.
       ``(4) Definition.--In this subsection, the term 
     `Commissioner' means the Commissioner responsible for the 
     United States Customs and Border Protection in the Department 
     of Homeland Security.''.

     SEC. 405. INTERNATIONAL TRADE DATA SYSTEM.

       Section 411 of the Tariff Act of 1930 (19 U.S.C. 1411) is 
     amended by adding at the end the following:
       ``(d) International Trade Data System.--
       ``(1) Establishment.--
       ``(A) In general.--The Secretary of the Treasury (in this 
     subsection, referred to as the `Secretary') shall oversee the 
     establishment of an electronic trade data interchange system 
     to be known as the `International Trade Data System' (ITDS). 
     The ITDS shall be implemented not later than the date that 
     the Automated Commercial Environment (commonly referred to as 
     `ACE') is fully implemented.
       ``(B) Purpose.--The purpose of the ITDS is to eliminate 
     redundant information requirements, to efficiently regulate 
     the flow of commerce, and to effectively enforce laws and 
     regulations relating to international trade, by establishing 
     a single portal system, operated by the United States Customs 
     and Border Protection, for the collection and distribution of 
     standard electronic import and export data required by all 
     participating Federal agencies.
       ``(C) Participation.--
       ``(i) In general.--All Federal agencies that require 
     documentation for clearing or licensing the importation and 
     exportation of cargo shall participate in the ITDS.
       ``(ii) Waiver.--The Director of the Office of Management 
     and Budget may waive, in whole or in part, the requirement 
     for participation for any Federal agency based on the vital 
     national interest of the United States.
       ``(D) Consultation.--The Secretary shall consult with and 
     assist the United States Customs and Border Protection and 
     other agencies in the transition from paper to electronic 
     format for the submission, issuance, and storage of documents 
     relating to data required to enter cargo into the United 
     States. In so doing, the Secretary shall also consult with 
     private sector stakeholders, including the Commercial 
     Operations Advisory Committee, in developing uniform data 
     submission requirements, procedures, and schedules, for the 
     ITDS.
       ``(E) Coordination.--The Secretary shall be responsible for 
     coordinating the operation of the ITDS among the 
     participating agencies and the office within the United 
     States Customs and Border Protection that is responsible for 
     maintaining the ITDS.
       ``(2) Data elements.--
       ``(A) In general.--The Interagency Steering Committee 
     (established under paragraph (3)) shall, in consultation with 
     the agencies participating in the ITDS, define the standard 
     set of data elements to be collected, stored, and shared in 
     the ITDS, consistent with laws applicable to the collection 
     and protection of import and export information. The 
     Interagency Steering Committee shall periodically review the 
     data elements in order to update the standard set of data 
     elements, as necessary.
       ``(B) Commitments and obligations.--The Interagency 
     Steering Committee shall ensure that the ITDS data 
     requirements are compatible with the commitments and 
     obligations of the United States as a member of the World 
     Customs Organization (WCO) and the World Trade Organization 
     (WTO) for the entry and movement of cargo.
       ``(3) Interagency steering committee.--There is established 
     an Interagency Steering Committee (in this section, referred 
     to as the `Committee'). The members of the Committee shall 
     include the Secretary (who shall serve as the chairperson of 
     the Committee), the Director of the Office of Management and 
     Budget, and the head of each agency participating in the 
     ITDS. The Committee shall assist the Secretary in overseeing 
     the implementation of, and participation in, the ITDS.
       ``(4) Report.--The President shall submit a report before 
     the end of each fiscal year to the Committee on Finance of 
     the Senate and the Committee on Ways and Means of the House 
     of Representatives. Each report shall include information 
     on--
       ``(A) the status of the ITDS implementation;
       ``(B) the extent of participation in the ITDS by Federal 
     agencies;
       ``(C) the remaining barriers to any agency's participation;
       ``(D) the consistency of the ITDS with applicable standards 
     established by the World Customs Organization and the World 
     Trade Organization;
       ``(E) recommendations for technological and other 
     improvements to the ITDS; and
       ``(F) the status of the development, implementation, and 
     management of the Automated Commercial Environment within the 
     United States Customs and Border Protection.
       ``(5) Sense of congress.--It is the sense of Congress that 
     agency participation in the ITDS is an important priority of 
     the Federal Government and that the Secretary shall 
     coordinate the operation of the ITDS closely among the 
     participating agencies and the office within the United 
     States Customs and Border Protection that is responsible for 
     maintaining the ITDS.
       ``(6) Construction.--Nothing in this section shall be 
     construed as amending or modifying subsection (g) of section 
     301 of title 13, United States Code.
       ``(7) Definition.--The term `Commercial Operations Advisory 
     Committee' means the Advisory Committee established pursuant 
     to section

[[Page 21313]]

     9503(c) of the Omnibus Budget Reconciliation Act of 1987 (19 
     U.S.C. 2071 note) or any successor committee.''.

     SEC. 406. IN-BOND CARGO.

       Title IV of the Tariff Act of 1930 is amended by inserting 
     after section 553 the following:

     ``SEC. 553A. REPORT ON IN-BOND CARGO.

       ``(a) Report.--Not later than June 30, 2007, the 
     Commissioner shall submit a report to the Committee on 
     Commerce, Science, and Transportation of the Senate, the 
     Committee on Finance of the Senate, the Committee on Homeland 
     Security and Governmental Affairs of the Senate, the 
     Committee on Homeland Security of the House of 
     Representatives, the Committee on Transportation and 
     Infrastructure of the House of Representatives, and the 
     Committee on Ways and Means of the House of Representatives 
     that includes--
       ``(1) a plan for closing in-bond entries at the port of 
     arrival;
       ``(2) an assessment of the personnel required to ensure 100 
     percent reconciliation of in-bond entries between the port of 
     arrival and the port of destination or exportation;
       ``(3) an assessment of the status of investigations of 
     overdue in-bond shipments and an evaluation of the resources 
     required to ensure adequate investigation of overdue in-bond 
     shipments;
       ``(4) a plan for tracking in-bond cargo within the 
     Automated Commercial Environment (ACE);
       ``(5) an assessment of whether any particular technologies 
     should be required in the transport of in-bond cargo;
       ``(6) an assessment of whether ports of arrival should 
     require any additional information regarding shipments of in-
     bond cargo;
       ``(7) an evaluation of the criteria for targeting and 
     examining in-bond cargo; and
       ``(8) an assessment of the feasibility of reducing the 
     transit time for in-bond shipments, including an assessment 
     of the impact of such a change on domestic and international 
     trade.
       ``(b) Definition.--In this section, the term `Commissioner' 
     means the Commissioner responsible for the United States 
     Customs and Border Protection in the Department of Homeland 
     Security.''.

     SEC. 407. SENSE OF THE SENATE.

       It is the sense of the Senate that nothing in sections 111 
     through 114, 121, and 201 through 236, or the amendments made 
     by such sections, shall be construed to affect the 
     jurisdiction of any Standing Committee of the Senate.

               TITLE V--DOMESTIC NUCLEAR DETECTION OFFICE

     SEC. 501. ESTABLISHMENT OF DOMESTIC NUCLEAR DETECTION OFFICE.

       (a) Establishment of Office.--The Homeland Security Act of 
     2002 (6 U.S.C. 101 et seq.) is amended by adding at the end 
     the following:

            ``TITLE XVIII--DOMESTIC NUCLEAR DETECTION OFFICE

     ``SEC. 1801. DOMESTIC NUCLEAR DETECTION OFFICE.

       ``(a) Establishment.--There shall be established in the 
     Department a Domestic Nuclear Detection Office (referred to 
     in this title as the `Office'). The Secretary may request 
     that the Secretary of Defense, the Secretary of Energy, the 
     Secretary of State, the Attorney General, the Nuclear 
     Regulatory Commission, and the directors of other Federal 
     agencies, including elements of the Intelligence Community, 
     provide for the reimbursable detail of personnel with 
     relevant expertise to the Office.
       ``(b) Director.--The Office shall be headed by a Director 
     for Domestic Nuclear Detection, who shall be appointed by the 
     President.

     ``SEC. 1802. MISSION OF OFFICE.

       ``(a) Mission.--The Office shall be responsible for 
     coordinating Federal efforts to detect and protect against 
     the unauthorized importation, possession, storage, 
     transportation, development, or use of a nuclear explosive 
     device, fissile material, or radiological material in the 
     United States, and to protect against attack using such 
     devices or materials against the people, territory, or 
     interests of the United States and, to this end, shall--
       ``(1) serve as the primary entity of the United States 
     Government to further develop, acquire, and support the 
     deployment of an enhanced domestic system to detect and 
     report on attempts to import, possess, store, transport, 
     develop, or use an unauthorized nuclear explosive device, 
     fissile material, or radiological material in the United 
     States, and improve that system over time;
       ``(2) enhance and coordinate the nuclear detection efforts 
     of Federal, State, local, and tribal governments and the 
     private sector to ensure a managed, coordinated response;
       ``(3) establish, with the approval of the Secretary and in 
     coordination with the Attorney General, the Secretary of 
     Defense, and the Secretary of Energy, additional protocols 
     and procedures for use within the United States to ensure 
     that the detection of unauthorized nuclear explosive devices, 
     fissile material, or radiological material is promptly 
     reported to the Attorney General, the Secretary, the 
     Secretary of Defense, the Secretary of Energy, and other 
     appropriate officials or their respective designees for 
     appropriate action by law enforcement, military, emergency 
     response, or other authorities;
       ``(4) develop, with the approval of the Secretary and in 
     coordination with the Attorney General, the Secretary of 
     State, the Secretary of Defense, and the Secretary of Energy, 
     an enhanced global nuclear detection architecture with 
     implementation under which--
       ``(A) the Office will be responsible for the implementation 
     of the domestic portion of the global architecture;
       ``(B) the Secretary of Defense will retain responsibility 
     for implementation of Department of Defense requirements 
     within and outside the United States; and
       ``(C) the Secretary of State, the Secretary of Defense, and 
     the Secretary of Energy will maintain their respective 
     responsibilities for policy guidance and implementation of 
     the portion of the global architecture outside the United 
     States, which will be implemented consistent with applicable 
     law and relevant international arrangements;
       ``(5) ensure that the expertise necessary to accurately 
     interpret detection data is made available in a timely manner 
     for all technology deployed by the Office to implement the 
     global nuclear detection architecture;
       ``(6) conduct, support, coordinate, and encourage an 
     aggressive, expedited, evolutionary, and transformational 
     program of research and development to generate and improve 
     technologies to detect and prevent the illicit entry, 
     transport, assembly, or potential use within the United 
     States of a nuclear explosive device or fissile or 
     radiological material, and coordinate with the Under 
     Secretary for Science and Technology on basic and advanced or 
     transformational research and development efforts relevant to 
     the mission of both organizations;
       ``(7) carry out a program to test and evaluate technology 
     for detecting a nuclear explosive device and fissile or 
     radiological material, in coordination with the Secretary of 
     Defense and the Secretary of Energy, as appropriate, and 
     establish performance metrics for evaluating the 
     effectiveness of individual detectors and detection systems 
     in detecting such devices or material--
       ``(A) under realistic operational and environmental 
     conditions; and
       ``(B) against realistic adversary tactics and 
     countermeasures;
       ``(8) support and enhance the effective sharing and use of 
     appropriate information generated by the intelligence 
     community, law enforcement agencies, counterterrorism 
     community, other government agencies, and foreign 
     governments, as well as provide appropriate information to 
     such entities;
       ``(9) further enhance and maintain continuous awareness by 
     analyzing information from all Office mission-related 
     detection systems; and
       ``(10) perform other duties as assigned by the Secretary.

     ``SEC. 1803. HIRING AUTHORITY.

       ``In hiring personnel for the Office, the Secretary shall 
     have the hiring and management authorities provided in 
     section 1101 of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (5 U.S.C. 3104 note). 
     The term of appointments for employees under subsection 
     (c)(1) of such section may not exceed 5 years before granting 
     any extension under subsection (c)(2) of such section.

     ``SEC. 1804. TESTING AUTHORITY.

       ``(a) In General.--The Director shall coordinate with the 
     responsible Federal agency or other entity to facilitate the 
     use by the Office, by its contractors, or by other persons or 
     entities, of existing Government laboratories, centers, 
     ranges, or other testing facilities for the testing of 
     materials, equipment, models, computer software, and other 
     items as may be related to the missions identified in section 
     1802. Any such use of Government facilities shall be carried 
     out in accordance with all applicable laws, regulations, and 
     contractual provisions, including those governing security, 
     safety, and environmental protection, including, when 
     applicable, the provisions of section 309. The Office may 
     direct that private sector entities utilizing Government 
     facilities in accordance with this section pay an appropriate 
     fee to the agency that owns or operates those facilities to 
     defray additional costs to the Government resulting from such 
     use.
       ``(b) Confidentiality of Test Results.--The results of 
     tests performed with services made available shall be 
     confidential and shall not be disclosed outside the Federal 
     Government without the consent of the persons for whom the 
     tests are performed.
       ``(c) Fees.--Fees for services made available under this 
     section shall not exceed the amount necessary to recoup the 
     direct and indirect costs involved, such as direct costs of 
     utilities, contractor support, and salaries of personnel that 
     are incurred by the United States to provide for the testing.
       ``(d) Use of Fees.--Fees received for services made 
     available under this section may be credited to the 
     appropriation from which funds were expended to provide such 
     services.

     ``SEC. 1805. RELATIONSHIP TO OTHER DEPARTMENT ENTITIES AND 
                   FEDERAL AGENCIES.

       ``The authority of the Director under this title shall not 
     affect the authorities or responsibilities of any officer of 
     the Department or of any officer of any other department or 
     agency of the United States with respect to the command, 
     control, or direction of the functions, personnel, funds, 
     assets, and liabilities of any entity within the Department 
     or any Federal department or agency.

     ``SEC. 1806. CONTRACTING AND GRANT MAKING AUTHORITIES.

       ``The Secretary, acting through the Director for Domestic 
     Nuclear Detection, in carrying out the responsibilities under 
     paragraphs (6) and (7) of section 1802(a), shall--
       ``(1) operate extramural and intramural programs and 
     distribute funds through grants, cooperative agreements, and 
     other transactions and contracts;

[[Page 21314]]

       ``(2) ensure that activities under paragraphs (6) and (7) 
     of section 1802(a) include investigations of radiation 
     detection equipment in configurations suitable for deployment 
     at seaports, which may include underwater or water surface 
     detection equipment and detection equipment that can be 
     mounted on cranes and straddle cars used to move shipping 
     containers; and
       ``(3) have the authority to establish or contract with 1 or 
     more federally funded research and development centers to 
     provide independent analysis of homeland security issues and 
     carry out other responsibilities under this title.''.
       (b) Technical and Conforming Amendments.--The Homeland 
     Security Act of 2002 (6 U.S.C. 101 et seq.) is amended--
       (1) in section 103(d) (6 U.S.C. 113(d)), by adding at the 
     end the following:
       ``(5) A Director for Domestic Nuclear Detection.'';
       (2) in section 302 (6 U.S.C. 182)--
       (A) in paragraph (2), by striking ``radiological, 
     nuclear''; and
       (B) in paragraph (5)(A), by striking ``radiological, 
     nuclear''; and
       (3) in the table of contents, by adding at the end the 
     following:

            ``TITLE XVIII--DOMESTIC NUCLEAR DETECTION OFFICE

``Sec. 1801. Domestic Nuclear Detection Office.
``Sec. 1802. Mission of Office.
``Sec. 1803. Hiring authority.
``Sec. 1804. Testing authority.
``Sec. 1805. Relationship to other Department entities and Federal 
              agencies.
``Sec. 1806. Contracting and grant making authorities.''.

     SEC. 502. TECHNOLOGY RESEARCH AND DEVELOPMENT INVESTMENT 
                   STRATEGY FOR NUCLEAR AND RADIOLOGICAL 
                   DETECTION.

       (a) In General.--Not later than 1 year after the date of 
     the enactment of this Act, the Secretary, the Secretary of 
     Energy, the Secretary of Defense, and the Director of 
     National Intelligence shall submit to Congress a research and 
     development investment strategy for nuclear and radiological 
     detection.
       (b) Contents.--The strategy under subsection (a) shall 
     include--
       (1) a long term technology roadmap for nuclear and 
     radiological detection applicable to the mission needs of the 
     Department, the Department of Energy, the Department of 
     Defense, and the Office of the Director of National 
     Intelligence;
       (2) budget requirements necessary to meet the roadmap; and
       (3) documentation of how the Department, the Department of 
     Energy, the Department of Defense, and the Office of the 
     Director of National Intelligence will execute this strategy.
       (c) Initial Report.--Not later than 1 year after the date 
     of the enactment of this Act, the Secretary shall submit a 
     report to the appropriate congressional committees on--
       (1) the impact of this title, and the amendments made by 
     this title, on the responsibilities under section 302 of the 
     Homeland Security Act of 2002 (6 U.S.C. 182); and
       (2) the efforts of the Department to coordinate, integrate, 
     and establish priorities for conducting all basic and applied 
     research, development, testing, and evaluation of technology 
     and systems to detect, prevent, protect, and respond to 
     chemical, biological, radiological, and nuclear terrorist 
     attacks.
       (d) Annual Report.--The Director for Domestic Nuclear 
     Detection and the Under Secretary for Science and Technology 
     shall jointly and annually notify Congress that the strategy 
     and technology road map for nuclear and radiological 
     detection developed under subsections (a) and (b) is 
     consistent with the national policy and strategic plan for 
     identifying priorities, goals, objectives, and policies for 
     coordinating the Federal Government's civilian efforts to 
     identify and develop countermeasures to terrorist threats 
     from weapons of mass destruction that are required under 
     section 302(2) of the Homeland Security Act of 2002 (6 U.S.C. 
     182(2)).

               TITLE VI--COMMERCIAL MOBILE SERVICE ALERTS

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``Warning, Alert, and 
     Response Network Act''.

     SEC. 602. FEDERAL COMMUNICATIONS COMMISSION DUTIES.

       (a) Commercial Mobile Service Alert Regulations.--Within 
     180 days after the date on which the Commercial Mobile 
     Service Alert Advisory Committee, established pursuant to 
     section 603(a), transmits recommendations to the Federal 
     Communications Commission, the Commission shall complete a 
     proceeding to adopt relevant technical standards, protocols, 
     procedures, and other technical requirements based on the 
     recommendations of such Advisory Committee necessary to 
     enable commercial mobile service alerting capability for 
     commercial mobile service providers that voluntarily elect to 
     transmit emergency alerts. The Commission shall consult with 
     the National Institute of Standards and Technology regarding 
     the adoption of technical standards under this subsection.
       (b) Commercial Mobile Service Election.--
       (1) Amendment of commercial mobile service license.--Within 
     120 days after the date on which the Federal Communications 
     Commission adopts relevant technical standards and other 
     technical requirements pursuant to subsection (a), the 
     Commission shall complete a proceeding--
       (A) to allow any licensee providing commercial mobile 
     service (as defined in section 332(d)(1) of the 
     Communications Act of 1934 (47 U.S.C. 332(d)(1))) to transmit 
     emergency alerts to subscribers to, or users of, the 
     commercial mobile service provided by such licensee;
       (B) to require any licensee providing commercial mobile 
     service that elects, in whole or in part, under paragraph (2) 
     not to transmit emergency alerts to provide clear and 
     conspicuous notice at the point of sale of any devices with 
     which its commercial mobile service is included, that it will 
     not transmit such alerts via the service it provides for the 
     device; and
       (C) to require any licensee providing commercial mobile 
     service that elects under paragraph (2) not to transmit 
     emergency alerts to notify its existing subscribers of its 
     election.
       (2) Election.--
       (A) In general.--Within 30 days after the Commission issues 
     its order under paragraph (1), each licensee providing 
     commercial mobile service shall file an election with the 
     Commission with respect to whether or not it intends to 
     transmit emergency alerts.
       (B) Transmission standards; notification.--If a licensee 
     providing commercial mobile service elects to transmit 
     emergency alerts via its commercial mobile service, the 
     licensee shall--
       (i) notify the Commission of its election; and
       (ii) agree to transmit such alerts in a manner consistent 
     with the technical standards, protocols, procedures, and 
     other technical requirements implemented by the Commission.
       (C) No fee for service.--A commercial mobile service 
     licensee that elects to transmit emergency alerts may not 
     impose a separate or additional charge for such transmission 
     or capability.
       (D) Withdrawal; late election.--The Commission shall 
     establish a procedure--
       (i) for a commercial mobile service licensee that has 
     elected to transmit emergency alerts to withdraw its election 
     without regulatory penalty or forfeiture upon advance written 
     notification of the withdrawal to its affected subscribers;
       (ii) for a commercial mobile service licensee to elect to 
     transmit emergency alerts at a date later than provided in 
     subparagraph (A); and
       (iii) under which a subscriber may terminate a subscription 
     to service provided by a commercial mobile service licensee 
     that withdraws its election without penalty or early 
     termination fee.
       (E) Consumer choice technology.--Any commercial mobile 
     service licensee electing to transmit emergency alerts may 
     offer subscribers the capability of preventing the 
     subscriber's device from receiving such alerts, or classes of 
     such alerts, other than an alert issued by the President. 
     Within 2 years after the Commission completes the proceeding 
     under paragraph (1), the Commission shall examine the issue 
     of whether a commercial mobile service provider should 
     continue to be permitted to offer its subscribers such 
     capability. The Commission shall submit a report with its 
     recommendations to the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on Energy and 
     Commerce of the House of Representatives.
       (c) Digital Television Transmission Towers Retransmission 
     Capability.--Within 90 days after the date on which the 
     Commission adopts relevant technical standards based on 
     recommendations of the Commercial Mobile Service Alert 
     Advisory Committee, established pursuant to section 603(a), 
     the Commission shall complete a proceeding to require 
     licensees and permittees of noncommercial educational 
     broadcast stations or public broadcast stations (as those 
     terms are defined in section 397(6) of the Communications Act 
     of 1934 (47 U.S.C. 397(6))) to install necessary equipment 
     and technologies on, or as part of, any broadcast television 
     digital signal transmitter to enable the distribution of 
     geographically targeted alerts by commercial mobile service 
     providers that have elected to transmit emergency alerts 
     under this section.
       (d) FCC Regulation of Compliance.--The Federal 
     Communications Commission may enforce compliance with this 
     title but shall have no rulemaking authority under this 
     title, except as provided in subsections (a), (b), (c), and 
     (f).
       (e) Limitation of Liability.--
       (1) In general.--Any commercial mobile service provider 
     (including its officers, directors, employees, vendors, and 
     agents) that transmits emergency alerts and meets its 
     obligations under this title shall not be liable to any 
     subscriber to, or user of, such person's service or equipment 
     for--
       (A) any act or omission related to or any harm resulting 
     from the transmission of, or failure to transmit, an 
     emergency alert; or
       (B) the release to a government agency or entity, public 
     safety, fire service, law enforcement official, emergency 
     medical service, or emergency facility of subscriber 
     information used in connection with delivering such an alert.
       (2) Election not to transmit alerts.--The election by a 
     commercial mobile service provider under subsection (b)(2)(A) 
     not to transmit emergency alerts, or to withdraw its election 
     to transmit such alerts under subsection (b)(2)(D) shall not, 
     by itself, provide a basis for liability against the provider 
     (including its officers, directors, employees, vendors, and 
     agents).
       (f) Testing.--The Commission shall require by regulation 
     technical testing for commercial mobile service providers 
     that elect to transmit emergency alerts and for the devices 
     and equipment used by such providers for transmitting such 
     alerts.

     SEC. 603. COMMERCIAL MOBILE SERVICE ALERT ADVISORY COMMITTEE.

       (a) Establishment.--Not later than 60 days after the date 
     of enactment of this Act, the chairman of the Federal 
     Communications Commission shall establish an advisory 
     committee, to

[[Page 21315]]

     be known as the Commercial Mobile Service Alert Advisory 
     Committee (referred to in this section as the ``Advisory 
     Committee'').
       (b) Membership.--The chairman of the Federal Communications 
     Commission shall appoint the members of the Advisory 
     Committee, as soon as practicable after the date of enactment 
     of this Act, from the following groups:
       (1) State and local government representatives.--
     Representatives of State and local governments and 
     representatives of emergency response providers, selected 
     from among individuals nominated by national organizations 
     representing such governments and personnel.
       (2) Tribal governments.--Representatives from Federally 
     recognized Indian tribes and National Indian organizations.
       (3) Subject matter experts.--Individuals who have the 
     requisite technical knowledge and expertise to serve on the 
     Advisory Committee in the fulfillment of its duties, 
     including representatives of--
       (A) communications service providers;
       (B) vendors, developers, and manufacturers of systems, 
     facilities, equipment, and capabilities for the provision of 
     communications services;
       (C) third-party service bureaus;
       (D) technical experts from the broadcasting industry;
       (E) the national organization representing the licensees 
     and permittees of noncommercial broadcast television 
     stations;
       (F) national organizations representing individuals with 
     special needs, including individuals with disabilities and 
     the elderly; and
       (G) other individuals with relevant technical expertise.
       (4) Qualified representatives of other stakeholders and 
     interested parties.--Qualified representatives of such other 
     stakeholders and interested and affected parties as the 
     chairman deems appropriate.
       (c) Development of System-Critical Recommendations.--Within 
     1 year after the date of enactment of this Act, the Advisory 
     Committee shall develop and submit to the Federal 
     Communications Commission recommendations--
       (1) for protocols, technical capabilities, and technical 
     procedures through which electing commercial mobile service 
     providers receive, verify, and transmit alerts to 
     subscribers;
       (2) for the establishment of technical standards for 
     priority transmission of alerts by electing commercial mobile 
     service providers to subscribers;
       (3) for relevant technical standards for devices and 
     equipment and technologies used by electing commercial mobile 
     service providers to transmit emergency alerts to 
     subscribers;
       (4) for the technical capability to transmit emergency 
     alerts by electing commercial mobile providers to subscribers 
     in languages in addition to English, to the extent 
     practicable and feasible;
       (5) under which electing commercial mobile service 
     providers may offer subscribers the capability of preventing 
     the subscriber's device from receiving emergency alerts, or 
     classes of such alerts, (other than an alert issued by the 
     President), consistent with section 602(b)(2)(E);
       (6) for a process under which commercial mobile service 
     providers can elect to transmit emergency alerts if--
       (A) not all of the devices or equipment used by such 
     provider are capable of receiving such alerts; or
       (B) the provider cannot offer such alerts throughout the 
     entirety of its service area; and
       (7) as otherwise necessary to enable electing commercial 
     mobile service providers to transmit emergency alerts to 
     subscribers.
       (d) Meetings.--
       (1) Initial meeting.--The initial meeting of the Advisory 
     Committee shall take place not later than 60 days after the 
     date of the enactment of this Act.
       (2) Other meetings.--After the initial meeting, the 
     Advisory Committee shall meet at the call of the chair.
       (3) Notice; open meetings.--Any meetings held by the 
     Advisory Committee shall be duly noticed at least 14 days in 
     advance and shall be open to the public.
       (e) Rules.--
       (1) Quorum.--One-third of the members of the Advisory 
     Committee shall constitute a quorum for conducting business 
     of the Advisory Committee.
       (2) Subcommittees.--To assist the Advisory Committee in 
     carrying out its functions, the chair may establish 
     appropriate subcommittees composed of members of the Advisory 
     Committee and other subject matter experts as deemed 
     necessary.
       (3) Additional rules.--The Advisory Committee may adopt 
     other rules as needed.
       (f) Federal Advisory Committee Act.--Neither the Federal 
     Advisory Committee Act (5 U.S.C. App.) nor any rule, order, 
     or regulation promulgated under that Act shall apply to the 
     Advisory Committee.
       (g) Consultation With NIST.--The Advisory Committee shall 
     consult with the National Institute of Standards and 
     Technology in its work on developing recommendations under 
     paragraphs (2) and (3) of subsection (c).

     SEC. 604. RESEARCH AND DEVELOPMENT.

       (a) In General.--The Under Secretary of Homeland Security 
     for Science and Technology, in consultation with the director 
     of the National Institute of Standards and Technology and the 
     chairman of the Federal Communications Commission, shall 
     establish a research, development, testing, and evaluation 
     program based on the recommendations of the Commercial Mobile 
     Service Alert Advisory Committee, established pursuant to 
     section 603(a), to support the development of technologies to 
     increase the number of commercial mobile service devices that 
     can receive emergency alerts.
       (b) Functions.--The program established under subsection 
     (a) shall--
       (1) fund research, development, testing, and evaluation at 
     academic institutions, private sector entities, government 
     laboratories, and other appropriate entities; and
       (2) ensure that the program addresses, at a minimum--
       (A) developing innovative technologies that will transmit 
     geographically targeted emergency alerts to the public; and
       (B) research on understanding and improving public response 
     to warnings.

     SEC. 605. GRANT PROGRAM FOR REMOTE COMMUNITY ALERT SYSTEMS.

       (a) Grant Program.--The Under Secretary of Commerce for 
     Oceans and Atmosphere, in consultation with the Secretary of 
     Homeland Security, shall establish a program under which 
     grants may be made to provide for outdoor alerting 
     technologies in remote communities effectively unserved by 
     commercial mobile service (as determined by the Federal 
     Communications Commission within 180 days after the date of 
     enactment of this Act) for the purpose of enabling residents 
     of those communities to receive emergency alerts.
       (b) Applications and Conditions.--In conducting the 
     program, the Under Secretary--
       (1) shall establish a notification and application 
     procedure; and
       (2) may establish such conditions, and require such 
     assurances, as may be appropriate to ensure the efficiency 
     and integrity of the grant program.
       (c) Sunset.--The Under Secretary may not make grants under 
     subsection (a) more than 5 years after the date of enactment 
     of this Act.
       (d) Limitation.--The sum of the amounts awarded for all 
     fiscal years as grants under this section may not exceed 
     $10,000,000.

     SEC. 606. FUNDING.

       (a) In General.--In addition to any amounts provided by 
     appropriation Acts, funding for this title shall be provided 
     from the Digital Transition and Public Safety Fund in 
     accordance with section 3010 of the Digital Television 
     Transition and Public Safety Act of 2005 (47 U.S.C. 309 
     note).
       (b) Compensation.--The Assistant Secretary of Commerce for 
     Communications and Information shall compensate any such 
     broadcast station licensee or permittee for reasonable costs 
     incurred in complying with the requirements imposed pursuant 
     to section 602(c) from funds made available under this 
     section. The Assistant Secretary shall ensure that sufficient 
     funds are made available to effectuate geographically 
     targeted alerts.
       (c) Credit.--The Assistant Secretary of Commerce for 
     Communications and Information, in consultation with the 
     Under Secretary of Homeland Security for Science and 
     Technology and the Under Secretary of Commerce for Oceans and 
     Atmosphere, may borrow from the Treasury beginning on October 
     1, 2006, such sums as may be necessary, but not to exceed 
     $106,000,000, to implement this title. The Assistant 
     Secretary of Commerce for Communications and Information 
     shall ensure that the Under Secretary of Homeland Security 
     for Science and Technology and the Under Secretary of 
     Commerce for Oceans and Atmosphere are provided adequate 
     funds to carry out their responsibilities under sections 604 
     and 605 of this title. The Treasury shall be reimbursed, 
     without interest, from amounts in the Digital Television 
     Transition and Public Safety Fund as funds are deposited into 
     the Fund.

     SEC. 607. ESSENTIAL SERVICES DISASTER ASSISTANCE.

       Title IV of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5170 et seq.) is amended 
     by adding at the end the following:

     ``SEC. 425. ESSENTIAL SERVICE PROVIDERS.

       ``(a) Definition.--In this section, the term `essential 
     service provider' means an entity that--
       ``(1) provides--
       ``(A) telecommunications service;
       ``(B) electrical power;
       ``(C) natural gas;
       ``(D) water and sewer services; or
       ``(E) any other essential service, as determined by the 
     President;
       ``(2) is--
       ``(A) a municipal entity;
       ``(B) a nonprofit entity; or
       ``(C) a private, for profit entity; and
       ``(3) is contributing to efforts to respond to an emergency 
     or major disaster.
       ``(b) Authorization for Accessibility.--Unless exceptional 
     circumstances apply, in an emergency or major disaster, the 
     head of a Federal agency, to the greatest extent practicable, 
     shall not--
       ``(1) deny or impede access to the disaster site to an 
     essential service provider whose access is necessary to 
     restore and repair an essential service; or
       ``(2) impede the restoration or repair of the services 
     described in subsection (a)(1).
       ``(c) Implementation.--In implementing this section, the 
     head of a Federal agency shall follow all applicable Federal 
     laws, regulations, and policies.''.

     SEC. 608. COMMUNITY DISASTER LOANS.

       Section 417(b) of the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5184(b)) is amended--
       (1) by striking ``exceed 25 per centum'' and inserting the 
     following: ``exceed--

[[Page 21316]]

       ``(1) 25 percent''; and
       (2) by striking the period at the end and inserting the 
     following: ``; or
       ``(2) if the loss of tax and other revenues of the local 
     government as a result of the major disaster is at least 75 
     percent of the annual operating budget of that local 
     government for the fiscal year in which the major disaster 
     occurs, 50 percent of the annual operating budget of that 
     local government for the fiscal year in which the major 
     disaster occurs, and shall not exceed $5,000,000.''.

     SEC. 609. PUBLIC FACILITIES.

       Section 406(c)(1) of the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5172(c)(1)) is 
     amended--
       (1) in subparagraph (A), by striking ``75'' and inserting 
     ``90'';
       (2) by striking subparagraph (B); and
       (3) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (B) and (C), respectively.

     SEC. 610. EXPEDITED PAYMENTS.

       Section 407 of the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act (42 U.S.C. 5173) is amended by 
     adding at the end the following:
       ``(e) Expedited Payments.--
       ``(1) Grant assistance.--In making a grant under subsection 
     (a)(2), the President shall provide not less than 50 percent 
     of the President's initial estimate of the Federal share of 
     assistance as an initial payment in accordance with paragraph 
     (2).
       ``(2) Date of payment.--Not later than 60 days after the 
     date of the estimate described in paragraph (1) and not later 
     than 90 days after the date on which the State or local 
     government or owner or operator of a private nonprofit 
     facility applies for assistance under this section, an 
     initial payment described in paragraph (1) shall be paid.''.

     SEC. 611. USE OF LOCAL CONTRACTING.

       Section 307(b) of the Robert T. Stafford Disaster Relief 
     and Emergency Assistance Act (42 U.S.C. 5150), as amended by 
     the Post-Katrina Emergency Management Reform Act of 2006, is 
     amended by adding at the end the following:
       ``(3) Formulation of requirements.--The head of a Federal 
     agency, as feasible and practicable, shall formulate 
     appropriate requirements to facilitate compliance with this 
     section.''.

     SEC. 612. FEMA PROGRAMS.

       Notwithstanding any other provision of Federal law, as of 
     April 1, 2007, the Director of the Federal Emergency 
     Management Agency shall be responsible for the radiological 
     emergency preparedness program and the chemical stockpile 
     emergency preparedness program.

     SEC. 613. HOMELAND SECURITY DEFINITION.

       Section 2(6) of the Homeland Security Act of 2002 (6 U.S.C. 
     101(6)) is amended by inserting ``governmental and 
     nongovernmental'' after ``local''.

                        TITLE VII--OTHER MATTERS

     SEC. 701. SECURITY PLAN FOR ESSENTIAL AIR SERVICE AND SMALL 
                   COMMUNITY AIRPORTS.

       (a) In General.--Not later than 60 days after the date of 
     the enactment of this Act, the Assistant Secretary for the 
     Transportation Security Administration shall submit to 
     Congress a security plan for--
       (1) Essential Air Service airports in the United States; 
     and
       (2) airports whose community or consortia of communities 
     receive assistance under the Small Community Air Service 
     Development Program authorized under section 41743 of title 
     49, United States Code, and maintain, resume, or obtain 
     scheduled passenger air carrier service with assistance from 
     that program in the United States.
       (b) Elements of Plan.--The security plans required under 
     subsection (a) shall include the following:
       (1) Recommendations for improved security measures at such 
     airports.
       (2) Recommendations for proper passenger and cargo security 
     screening procedures at such airports.
       (3) A timeline for implementation of recommended security 
     measures or procedures at such airports.
       (4) Cost analysis for implementation of recommended 
     security measures or procedures at such airports.

     SEC. 702. DISCLOSURES REGARDING HOMELAND SECURITY GRANTS.

       (a) Definitions.--In this section:
       (1) Homeland security grant.--The term ``homeland security 
     grant'' means any grant made or administered by the 
     Department, including--
       (A) the State Homeland Security Grant Program;
       (B) the Urban Area Security Initiative Grant Program;
       (C) the Law Enforcement Terrorism Prevention Program;
       (D) the Citizen Corps; and
       (E) the Metropolitan Medical Response System.
       (2) Local government.--The term ``local government'' has 
     the meaning given the term in section 2 of the Homeland 
     Security Act of 2002 (6 U.S.C. 101).
       (b) Required Disclosures.--Each State or local government 
     that receives a homeland security grant shall, not later than 
     12 months after the later of the date of the enactment of 
     this Act and the date of receipt of such grant, and every 12 
     months thereafter until all funds provided under such grant 
     are expended, submit a report to the Secretary that contains 
     a list of all expenditures made by such State or local 
     government using funds from such grant.

     SEC. 703. TRUCKING SECURITY.

       (a) Legal Status Verification for Licensed United States 
     Commercial Drivers.--Not later than 18 months after the date 
     of the enactment of this Act, the Secretary of 
     Transportation, in cooperation with the Secretary, shall 
     issue regulations to implement the recommendations contained 
     in the memorandum of the Inspector General of the Department 
     of Transportation issued on June 4, 2004 (Control No. 2004-
     054).
       (b) Commercial Driver's License Antifraud Programs.--Not 
     later than 18 months after the date of the enactment of this 
     Act, the Secretary of Transportation, in cooperation with the 
     Secretary, shall issue a regulation to implement the 
     recommendations contained in the Report on Federal Motor 
     Carrier Safety Administration Oversight of the Commercial 
     Driver's License Program (MH-2006-037).
       (c) Verification of Commercial Motor Vehicle Traffic.--
       (1) Guidelines.--Not later than 18 months after the date of 
     the enactment of this Act, the Secretary, in consultation 
     with the Secretary of Transportation, shall draft guidelines 
     for Federal, State, and local law enforcement officials, 
     including motor carrier safety enforcement personnel, on how 
     to identify noncompliance with Federal laws uniquely 
     applicable to commercial motor vehicles and commercial motor 
     vehicle operators engaged in cross-border traffic and 
     communicate such noncompliance to the appropriate Federal 
     authorities. Such guidelines shall be coordinated with the 
     training and outreach activities of the Federal Motor Carrier 
     Safety Administration under section 4139 of SAFETEA-LU 
     (Public Law 109-59).
       (2) Verification.--Not later than 18 months after the date 
     of the enactment of this Act, the Administrator of the 
     Federal Motor Carrier Safety Administration shall modify the 
     final rule regarding the enforcement of operating authority 
     (Docket No. FMCSA-2002-13015) to establish a system or 
     process by which a carrier's operating authority can be 
     verified during a roadside inspection.

     SEC. 704. AIR AND MARINE OPERATIONS OF THE NORTHERN BORDER 
                   AIR WING.

       In addition to any other amounts authorized to be 
     appropriated for Air and Marine Operations of United States 
     Customs and Border Protection for fiscal year 2008, there are 
     authorized to be appropriated such sums as may be necessary 
     for operation expenses and aviation assets, for primary and 
     secondary sites, of the Northern Border Air Wing Branch in 
     Great Falls, Montana.

     SEC. 705. PHASEOUT OF VESSELS SUPPORTING OIL AND GAS 
                   DEVELOPMENT.

       (a) In General.--Notwithstanding section 12105(c) of title 
     46, United States Code, a foreign-flag vessel may be 
     chartered by, or on behalf of, a lessee to be employed for 
     the setting, relocation, or recovery of anchors or other 
     mooring equipment of a mobile offshore drilling unit that is 
     located over the Outer Continental Shelf (as defined in 
     section 2(a) of the Outer Continental Shelf Lands Act (43 
     U.S.C. 1331(a)) for operations in support of exploration, or 
     flow-testing and stimulation of wells, for offshore mineral 
     or energy resources in the Beaufort Sea or the Chukchi Sea 
     adjacent to Alaska--
       (1) until December 31, 2009, if the Secretary of 
     Transportation determines after publishing notice in the 
     Federal Register, that insufficient vessels documented under 
     section 12105(c) of title 46, United States Code, are 
     reasonably available and suitable for these support 
     operations and all such reasonably available and suitable 
     vessels are employed in support of such operations; and
       (2) for an additional 2-year period beginning January 1, 
     2010, if the Secretary of Transportation determines --
       (A) as of December 31, 2009, the lessee has entered into a 
     binding agreement to employ an eligible vessel or vessels to 
     be documented under section 12105(c) of title 46, United 
     States Code, in sufficient numbers and with sufficient 
     suitability to replace any vessel or vessels operating under 
     this section; and
       (B) after publishing notice in the Federal Register, that 
     insufficient vessels documented under section 12105(c) of 
     title 46, United States Code, are reasonably available and 
     suitable for these support operations and all such reasonably 
     available and suitable vessels are employed in support of 
     such operations.
       (b) Lessee Defined.--In this section, the term ``lessee'' 
     means the holder of a lease (as defined in section 1331(c) of 
     title 43, United States Code).
       (c) Savings Provision.--Nothing in subsection (a) may be 
     construed to authorize the employment in the coastwise trade 
     of a vessel that does not meet the requirements of section 
     12106 of title 46, United States Code.

     SEC. 706. COAST GUARD PROPERTY IN PORTLAND, MAINE.

       Section 347(c) of the Maritime Transportation Security Act 
     of 2002 (Public Law 107-295; 116 Stat. 2109) is amended by 
     striking ``within 30 months from the date of conveyance'' and 
     inserting ``by December 31, 2009''.

     SEC. 707. METHAMPHETAMINE AND METHAMPHETAMINE PRECURSOR 
                   CHEMICALS.

       (a) Compliance With Performance Plan Requirements.--As part 
     of the annual performance plan required in the budget 
     submission of the United States Customs and Border Protection 
     under section 1115 of title 31, United States Code, the 
     Commissioner shall establish performance indicators relating 
     to the seizure of methamphetamine and methamphetamine 
     precursor chemicals in order to evaluate the performance

[[Page 21317]]

     goals of the United States Customs and Border Protection with 
     respect to the interdiction of illegal drugs entering the 
     United States.
       (b) Study and Report Relating to Methamphetamine and 
     Methamphetamine Precursor Chemicals.--
       (1) Analysis.--The Commissioner shall, on an ongoing basis, 
     analyze the movement of methamphetamine and methamphetamine 
     precursor chemicals into the United States. In conducting the 
     analysis, the Commissioner shall--
       (A) consider the entry of methamphetamine and 
     methamphetamine precursor chemicals through ports of entry, 
     between ports of entry, through international mails, and 
     through international courier services;
       (B) examine the export procedures of each foreign country 
     where the shipments of methamphetamine and methamphetamine 
     precursor chemicals originate and determine if changes in the 
     country's customs over time provisions would alleviate the 
     export of methamphetamine and methamphetamine precursor 
     chemicals; and
       (C) identify emerging trends in smuggling techniques and 
     strategies.
       (2) Report.--Not later than September 30, 2007, and each 2-
     year period thereafter, the Commissioner, in the consultation 
     with the Attorney General, United States Immigration and 
     Customs Enforcement, the United States Drug Enforcement 
     Administration, and the United States Department of State, 
     shall submit a report to the Committee on Finance of the 
     Senate, the Committee on Foreign Relations of the Senate, the 
     Committee on the Judiciary of the Senate, the Committee on 
     Ways and Means of the House of Representatives, the Committee 
     on International Relations of the House of Representatives, 
     and the Committee on the Judiciary of the House of 
     Representatives, that includes--
       (A) a comprehensive summary of the analysis described in 
     paragraph (1); and
       (B) a description of how the Untied States Customs and 
     Border Protection utilized the analysis described in 
     paragraph (1) to target shipments presenting a high risk for 
     smuggling or circumvention of the Combat Methamphetamine 
     Epidemic Act of 2005 (Public Law 109-177).
       (3) Availability of analysis.--The Commissioner shall 
     ensure that the analysis described in paragraph (1) is made 
     available in a timely manner to the Secretary of State to 
     facilitate the Secretary in fulfilling the Secretary's 
     reporting requirements in section 722 of the Combat 
     Methamphetamine Epidemic Act of 2005.
       (c) Definition.--In this section, the term 
     ``methamphetamine precursor chemicals'' means the chemicals 
     ephedrine, pseudoephedrine, or phenylpropanolamine, including 
     each of the salts, optical isomers, and salts of optical 
     isomers of such chemicals.

     SEC. 708. AIRCRAFT CHARTER CUSTOMER AND LESSEE PRESCREENING 
                   PROGRAM.

       (a) Implementation Status.--Not later than 270 days after 
     the implementation of the Department's aircraft charter 
     customer and lessee prescreening process required under 
     section 44903(j)(2) of title 49, United States Code, the 
     Comptroller General of the United States shall--
       (1) assess the status and implementation of the program and 
     the use of the program by the general aviation charter and 
     rental community; and
       (2) submit a report containing the findings, conclusions, 
     and recommendations, if any, of such assessment to--
       (A) the Committee on Commerce, Science, and Transportation 
     of the Senate;
       (B) the Committee on Homeland Security of the House of 
     Representatives; and
       (C) the Committee on Transportation and Infrastructure of 
     the House of Representatives.

     SEC. 709. PROTECTION OF HEALTH AND SAFETY DURING DISASTERS.

       (a) Definitions.--In this section:
       (1) Certified monitoring program.--The term ``certified 
     monitoring program'' means a medical monitoring program--
       (A) in which a participating responder is a participant as 
     a condition of the employment of such participating 
     responder; and
       (B) that the Secretary of Health and Human Services 
     certifies includes an adequate baseline medical screening.
       (2) Disaster area.--The term ``disaster area'' means an 
     area in which the President has declared a major disaster (as 
     that term is defined in section 102 of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (42 U.S.C. 
     5122)), during the period of such declaration.
       (3) High exposure level.--The term ``high exposure level'' 
     means a level of exposure to a substance of concern that is 
     for such a duration, or of such a magnitude, that adverse 
     effects on human health can be reasonably expected to occur, 
     as determined by the President, acting through the Secretary 
     of Health and Human Services, in accordance with human 
     monitoring or environmental or other appropriate indicators.
       (4) Individual.--The term ``individual'' includes--
       (A) a worker or volunteer who responds to a disaster, 
     either natural or manmade, involving any mode of 
     transportation in the United States or disrupting the 
     transportation system of the United States, including--
       (i) a police officer;
       (ii) a firefighter;
       (iii) an emergency medical technician;
       (iv) any participating member of an urban search and rescue 
     team; and
       (v) any other relief or rescue worker or volunteer that the 
     President, acting through the Secretary of Health and Human 
     Services, determines to be appropriate;
       (B) a worker who responds to a disaster, either natural or 
     manmade, involving any mode of transportation in the United 
     States or disrupting the transportation system of the United 
     States, by assisting in the cleanup or restoration of 
     critical infrastructure in and around a disaster area;
       (C) a person whose place of residence is in a disaster 
     area, caused by either a natural or manmade disaster 
     involving any mode of transportation in the United States or 
     disrupting the transportation system of the United States;
       (D) a person who is employed in or attends school, child 
     care, or adult day care in a building located in a disaster 
     area, caused by either a natural or manmade disaster 
     involving any mode of transportation in the United States or 
     disrupting the transportation system of the United States, of 
     the United States; and
       (E) any other person that the President, acting through the 
     Secretary of Health and Human Services, determines to be 
     appropriate.
       (5) Participating responder.--The term ``participating 
     responder'' means an individual described in paragraph 
     (4)(A).
       (6) Program.--The term ``program'' means a program 
     described in subsection (b) that is carried out for a 
     disaster area.
       (7) Substance of concern.--The term ``substance of 
     concern'' means a chemical or other substance that is 
     associated with potential acute or chronic human health 
     effects, the risk of exposure to which could potentially be 
     increased as the result of a disaster, as determined by the 
     President, acting through the Secretary of Health and Human 
     Services, and in coordination with the Agency for Toxic 
     Substances and Disease Registry, the Environmental Protection 
     Agency, the Centers for Disease Control and Prevention, the 
     National Institutes of Health, the Federal Emergency 
     Management Agency, the Occupational Health and Safety 
     Administration, and other agencies.
       (b) Program.--
       (1) In general.--If the President, acting through the 
     Secretary of Health and Human Services, determines that 1 or 
     more substances of concern are being, or have been, released 
     in an area declared to be a disaster area and disrupts the 
     transportation system of the United States, the President, 
     acting through the Secretary of Health and Human Services, 
     may carry out a program for the coordination, protection, 
     assessment, monitoring, and study of the health and safety of 
     individuals with high exposure levels to ensure that--
       (A) the individuals are adequately informed about and 
     protected against potential health impacts of any substance 
     of concern in a timely manner;
       (B) the individuals are monitored and studied over time, 
     including through baseline and followup clinical health 
     examinations, for--
       (i) any short- and long-term health impacts of any 
     substance of concern; and
       (ii) any mental health impacts;
       (C) the individuals receive health care referrals as needed 
     and appropriate; and
       (D) information from any such monitoring and studies is 
     used to prevent or protect against similar health impacts 
     from future disasters.
       (2) Activities.--A program under paragraph (1) may include 
     such activities as--
       (A) collecting and analyzing environmental exposure data;
       (B) developing and disseminating information and 
     educational materials;
       (C) performing baseline and followup clinical health and 
     mental health examinations and taking biological samples;
       (D) establishing and maintaining an exposure registry;
       (E) studying the short- and long-term human health impacts 
     of any exposures through epidemiological and other health 
     studies; and
       (F) providing assistance to individuals in determining 
     eligibility for health coverage and identifying appropriate 
     health services.
       (3) Timing.--To the maximum extent practicable, activities 
     under any program carried out under paragraph (1) (including 
     baseline health examinations) shall be commenced in a timely 
     manner that will ensure the highest level of public health 
     protection and effective monitoring.
       (4) Participation in registries and studies.--
       (A) In general.--Participation in any registry or study 
     that is part of a program carried out under paragraph (1) 
     shall be voluntary.
       (B) Protection of privacy.--The President, acting through 
     the Secretary of Health and Human Services, shall take 
     appropriate measures to protect the privacy of any 
     participant in a registry or study described in subparagraph 
     (A).
       (C) Priority.--
       (i) In general.--Except as provided in clause (ii), the 
     President, acting through the Secretary of Health and Human 
     Services, shall give priority in any registry or study 
     described in subparagraph (A) to the protection, monitoring 
     and study of the health and safety of individuals with the 
     highest level of exposure to a substance of concern.
       (ii) Modifications.--Notwithstanding clause (i), the 
     President, acting through the Secretary of Health and Human 
     Services, may modify the priority of a registry or study 
     described in subparagraph (A), if the President, acting 
     through the Secretary of Health and Human Services, 
     determines such modification to be appropriate.
       (5) Cooperative agreements.--
       (A) In general.--The President, acting through the 
     Secretary of Health and Human

[[Page 21318]]

     Services, may carry out a program under paragraph (1) through 
     a cooperative agreement with a medical institution, including 
     a local health department, or a consortium of medical 
     institutions.
       (B) Selection criteria.--To the maximum extent practicable, 
     the President, acting through the Secretary of Health and 
     Human Services, shall select, to carry out a program under 
     paragraph (1), a medical institution or a consortium of 
     medical institutions that--
       (i) is located near--

       (I) the disaster area with respect to which the program is 
     carried out; and
       (II) any other area in which there reside groups of 
     individuals that worked or volunteered in response to the 
     disaster; and

       (ii) has appropriate experience in the areas of 
     environmental or occupational health, toxicology, and safety, 
     including experience in--

       (I) developing clinical protocols and conducting clinical 
     health examinations, including mental health assessments;
       (II) conducting long-term health monitoring and 
     epidemiological studies;
       (III) conducting long-term mental health studies; and

       (IV) establishing and maintaining medical surveillance 
     programs and environmental exposure or disease registries.

       (6) Involvement.--
       (A) In general.--In carrying out a program under paragraph 
     (1), the President, acting through the Secretary of Health 
     and Human Services, shall involve interested and affected 
     parties, as appropriate, including representatives of--
       (i) Federal, State, and local government agencies;
       (ii) groups of individuals that worked or volunteered in 
     response to the disaster in the disaster area;
       (iii) local residents, businesses, and schools (including 
     parents and teachers);
       (iv) health care providers;
       (v) faith based organizations; and
       (vi) other organizations and persons.
       (B) Committees.--Involvement under subparagraph (A) may be 
     provided through the establishment of an advisory or 
     oversight committee or board.
       (7) Privacy.--The President, acting through the Secretary 
     of Health and Human Services, shall carry out each program 
     under paragraph (1) in accordance with regulations relating 
     to privacy promulgated under section 264(c) of the Health 
     Insurance Portability and Accountability Act of 1996 (42 
     U.S.C. 1320d-2 note; Public Law 104-191).
       (8) Existing programs.--In carrying out a program under 
     paragraph (1), the President, acting through the Secretary of 
     Health and Human Services, may--
       (A) include the baseline clinical health examination of a 
     participating responder under a certified monitoring 
     programs; and
       (B) substitute the baseline clinical health examination of 
     a participating responder under a certified monitoring 
     program for a baseline clinical health examination under 
     paragraph (1).
       (c) Reports.--Not later than 1 year after the establishment 
     of a program under subsection (b)(1), and every 5 years 
     thereafter, the President, acting through the Secretary of 
     Health and Human Services, or the medical institution or 
     consortium of such institutions having entered into a 
     cooperative agreement under subsection (b)(5), may submit a 
     report to the Secretary of Homeland Security, the Secretary 
     of Labor, the Administrator of the Environmental Protection 
     Agency, and appropriate committees of Congress describing the 
     programs and studies carried out under the program.
       (d) National Academy of Sciences Report on Disaster Area 
     Health and Environmental Protection and Monitoring.--
       (1) In general.--The Secretary of Health and Human 
     Services, the Secretary of Homeland Security, and the 
     Administrator of the Environmental Protection Agency shall 
     jointly enter into a contract with the National Academy of 
     Sciences to conduct a study and prepare a report on disaster 
     area health and environmental protection and monitoring.
       (2) Participation of experts.--The report under paragraph 
     (1) shall be prepared with the participation of individuals 
     who have expertise in--
       (A) environmental health, safety, and medicine;
       (B) occupational health, safety, and medicine;
       (C) clinical medicine, including pediatrics;
       (D) environmental toxicology;
       (E) epidemiology;
       (F) mental health;
       (G) medical monitoring and surveillance;
       (H) environmental monitoring and surveillance;
       (I) environmental and industrial hygiene;
       (J) emergency planning and preparedness;
       (K) public outreach and education;
       (L) State and local health departments;
       (M) State and local environmental protection departments;
       (N) functions of workers that respond to disasters, 
     including first responders;
       (O) public health; and
       (P) family services, such as counseling and other disaster-
     related services provided to families.
       (3) Contents.--The report under paragraph (1) shall provide 
     advice and recommendations regarding protecting and 
     monitoring the health and safety of individuals potentially 
     exposed to any chemical or other substance associated with 
     potential acute or chronic human health effects as the result 
     of a disaster, including advice and recommendations 
     regarding--
       (A) the establishment of protocols for monitoring and 
     responding to chemical or substance releases in a disaster 
     area to protect public health and safety, including--
       (i) chemicals or other substances for which samples should 
     be collected in the event of a disaster, including a 
     terrorist attack;
       (ii) chemical- or substance-specific methods of sample 
     collection, including sampling methodologies and locations;
       (iii) chemical- or substance-specific methods of sample 
     analysis;
       (iv) health-based threshold levels to be used and response 
     actions to be taken in the event that thresholds are exceeded 
     for individual chemicals or other substances;
       (v) procedures for providing monitoring results to--

       (I) appropriate Federal, State, and local government 
     agencies;
       (II) appropriate response personnel; and
       (III) the public;

       (vi) responsibilities of Federal, State, and local agencies 
     for--

       (I) collecting and analyzing samples;
       (II) reporting results; and
       (III) taking appropriate response actions; and

       (vii) capabilities and capacity within the Federal 
     Government to conduct appropriate environmental monitoring 
     and response in the event of a disaster, including a 
     terrorist attack; and
       (B) other issues specified by the Secretary of Health and 
     Human Services, the Secretary of Homeland Security, and the 
     Administrator of the Environmental Protection Agency.
       (4) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as are necessary to carry out 
     this subsection.

           TITLE VIII--UNLAWFUL INTERNET GAMBLING ENFORCEMENT

     SEC. 801. SHORT TITLE.

       This title may be cited as the ``Unlawful Internet Gambling 
     Enforcement Act of 2006''.

     SEC. 802. PROHIBITION ON ACCEPTANCE OF ANY PAYMENT INSTRUMENT 
                   FOR UNLAWFUL INTERNET GAMBLING.

       (a) In General.--Chapter 53 of title 31, United States 
     Code, is amended by adding at the end the following:

 ``SUBCHAPTER IV--PROHIBITION ON FUNDING OF UNLAWFUL INTERNET GAMBLING

     ``Sec. 5361. Congressional findings and purpose

       ``(a) Findings.--Congress finds the following:
       ``(1) Internet gambling is primarily funded through 
     personal use of payment system instruments, credit cards, and 
     wire transfers.
       ``(2) The National Gambling Impact Study Commission in 1999 
     recommended the passage of legislation to prohibit wire 
     transfers to Internet gambling sites or the banks which 
     represent such sites.
       ``(3) Internet gambling is a growing cause of debt 
     collection problems for insured depository institutions and 
     the consumer credit industry.
       ``(4) New mechanisms for enforcing gambling laws on the 
     Internet are necessary because traditional law enforcement 
     mechanisms are often inadequate for enforcing gambling 
     prohibitions or regulations on the Internet, especially where 
     such gambling crosses State or national borders.
       ``(b) Rule of Construction.--No provision of this 
     subchapter shall be construed as altering, limiting, or 
     extending any Federal or State law or Tribal-State compact 
     prohibiting, permitting, or regulating gambling within the 
     United States.

     ``Sec. 5362. Definitions

       ``In this subchapter:
       ``(1) Bet or wager.--The term `bet or wager'--
       ``(A) means the staking or risking by any person of 
     something of value upon the outcome of a contest of others, a 
     sporting event, or a game subject to chance, upon an 
     agreement or understanding that the person or another person 
     will receive something of value in the event of a certain 
     outcome;
       ``(B) includes the purchase of a chance or opportunity to 
     win a lottery or other prize (which opportunity to win is 
     predominantly subject to chance);
       ``(C) includes any scheme of a type described in section 
     3702 of title 28;
       ``(D) includes any instructions or information pertaining 
     to the establishment or movement of funds by the bettor or 
     customer in, to, or from an account with the business of 
     betting or wagering; and
       ``(E) does not include--
       ``(i) any activity governed by the securities laws (as that 
     term is defined in section 3(a)(47) of the Securities 
     Exchange Act of 1934 for the purchase or sale of securities 
     (as that term is defined in section 3(a)(10) of that Act);
       ``(ii) any transaction conducted on or subject to the rules 
     of a registered entity or exempt board of trade under the 
     Commodity Exchange Act;
       ``(iii) any over-the-counter derivative instrument;
       ``(iv) any other transaction that--

       ``(I) is excluded or exempt from regulation under the 
     Commodity Exchange Act; or
       ``(II) is exempt from State gaming or bucket shop laws 
     under section 12(e) of the Commodity Exchange Act or section 
     28(a) of the Securities Exchange Act of 1934;

       ``(v) any contract of indemnity or guarantee;
       ``(vi) any contract for insurance;
       ``(vii) any deposit or other transaction with an insured 
     depository institution;
       ``(viii) participation in any game or contest in which 
     participants do not stake or risk anything of value other 
     than--

       ``(I) personal efforts of the participants in playing the 
     game or contest or obtaining access to the Internet; or

[[Page 21319]]

       ``(II) points or credits that the sponsor of the game or 
     contest provides to participants free of charge and that can 
     be used or redeemed only for participation in games or 
     contests offered by the sponsor; or

       ``(ix) participation in any fantasy or simulation sports 
     game or educational game or contest in which (if the game or 
     contest involves a team or teams) no fantasy or simulation 
     sports team is based on the current membership of an actual 
     team that is a member of an amateur or professional sports 
     organization (as those terms are defined in section 3701 of 
     title 28) and that meets the following conditions:

       ``(I) All prizes and awards offered to winning participants 
     are established and made known to the participants in advance 
     of the game or contest and their value is not determined by 
     the number of participants or the amount of any fees paid by 
     those participants.
       ``(II) All winning outcomes reflect the relative knowledge 
     and skill of the participants and are determined 
     predominantly by accumulated statistical results of the 
     performance of individuals (athletes in the case of sports 
     events) in multiple real-world sporting or other events.
       ``(III) No winning outcome is based--

       ``(aa) on the score, point-spread, or any performance or 
     performances of any single real-world team or any combination 
     of such teams; or
       ``(bb) solely on any single performance of an individual 
     athlete in any single real-world sporting or other event.
       ``(2) Business of betting or wagering.--The term `business 
     of betting or wagering' does not include the activities of a 
     financial transaction provider, or any interactive computer 
     service or telecommunications service.
       ``(3) Designated payment system.--The term `designated 
     payment system' means any system utilized by a financial 
     transaction provider that the Secretary and the Board of 
     Governors of the Federal Reserve System, in consultation with 
     the Attorney General, jointly determine, by regulation or 
     order, could be utilized in connection with, or to 
     facilitate, any restricted transaction.
       ``(4) Financial transaction provider.--The term `financial 
     transaction provider' means a creditor, credit card issuer, 
     financial institution, operator of a terminal at which an 
     electronic fund transfer may be initiated, money transmitting 
     business, or international, national, regional, or local 
     payment network utilized to effect a credit transaction, 
     electronic fund transfer, stored value product transaction, 
     or money transmitting service, or a participant in such 
     network, or other participant in a designated payment system.
       ``(5) Internet.--The term `Internet' means the 
     international computer network of interoperable packet 
     switched data networks.
       ``(6) Interactive computer service.--The term `interactive 
     computer service' has the meaning given the term in section 
     230(f) of the Communications Act of 1934 (47 U.S.C. 230(f)).
       ``(7) Restricted transaction.--The term `restricted 
     transaction' means any transaction or transmittal involving 
     any credit, funds, instrument, or proceeds described in any 
     paragraph of section 5363 which the recipient is prohibited 
     from accepting under section 5363.
       ``(8) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(9) State.--The term `State' means any State of the 
     United States, the District of Columbia, or any commonwealth, 
     territory, or other possession of the United States.
       ``(10) Unlawful internet gambling.--
       ``(A) In general.--The term `unlawful Internet gambling' 
     means to place, receive, or otherwise knowingly transmit a 
     bet or wager by any means which involves the use, at least in 
     part, of the Internet where such bet or wager is unlawful 
     under any applicable Federal or State law in the State or 
     Tribal lands in which the bet or wager is initiated, 
     received, or otherwise made.
       ``(B) Intrastate transactions.--The term `unlawful Internet 
     gambling' does not include placing, receiving, or otherwise 
     transmitting a bet or wager where--
       ``(i) the bet or wager is initiated and received or 
     otherwise made exclusively within a single State;
       ``(ii) the bet or wager and the method by which the bet or 
     wager is initiated and received or otherwise made is 
     expressly authorized by and placed in accordance with the 
     laws of such State, and the State law or regulations 
     include--

       ``(I) age and location verification requirements reasonably 
     designed to block access to minors and persons located out of 
     such State; and
       ``(II) appropriate data security standards to prevent 
     unauthorized access by any person whose age and current 
     location has not been verified in accordance with such 
     State's law or regulations; and

       ``(iii) the bet or wager does not violate any provision 
     of--

       ``(I) the Interstate Horseracing Act of 1978 (15 U.S.C. 
     3001 et seq.);
       ``(II) chapter 178 of title 28 (commonly known as the 
     `Professional and Amateur Sports Protection Act');
       ``(III) the Gambling Devices Transportation Act (15 U.S.C. 
     1171 et seq.); or
       ``(IV) the Indian Gaming Regulatory Act (25 U.S.C. 2701 et 
     seq.).

       ``(C) Intratribal transactions.--The term `unlawful 
     Internet gambling' does not include placing, receiving, or 
     otherwise transmitting a bet or wager where--
       ``(i) the bet or wager is initiated and received or 
     otherwise made exclusively--

       ``(I) within the Indian lands of a single Indian tribe (as 
     such terms are defined under the Indian Gaming Regulatory 
     Act; or
       ``(II) between the Indian lands of 2 or more Indian tribes 
     to the extent that intertribal gaming is authorized by the 
     Indian Gaming Regulatory Act;

       ``(ii) the bet or wager and the method by which the bet or 
     wager is initiated and received or otherwise made is 
     expressly authorized by and complies with the requirements 
     of--

       ``(I) the applicable tribal ordinance or resolution 
     approved by the Chairman of the National Indian Gaming 
     Commission; and
       ``(II) with respect to class III gaming, the applicable 
     Tribal-State Compact;

       ``(iii) the applicable tribal ordinance or resolution or 
     Tribal-State compact includes--

       ``(I) age and location verification requirements reasonably 
     designed to block access to minors and persons located out of 
     the applicable Tribal lands; and
       ``(II) appropriate data security standards to prevent 
     unauthorized access by any person whose age and current 
     location has not been verified in accordance with the 
     applicable tribal ordinance or resolution or Tribal-State 
     Compact; and

       ``(iv) the bet or wager does not violate any provision of--

       ``(I) the Interstate Horseracing Act of 1978 (15 U.S.C. 
     3001 et seq.);
       ``(II) chapter 178 of title 28 (commonly known as the 
     `Professional and Amateur Sports Protection Act');
       ``(III) the Gambling Devices Transportation Act (15 U.S.C. 
     1171 et seq.); or
       ``(IV) the Indian Gaming Regulatory Act (25 U.S.C. 2701 et 
     seq.).

       ``(D) Interstate horseracing.--
       ``(i) In general.--The term `unlawful Internet gambling' 
     shall not include any activity that is allowed under the 
     Interstate Horseracing Act of 1978 (15 U.S.C. 3001 et seq.).
       ``(ii) Rule of construction regarding preemption.--Nothing 
     in this subchapter may be construed to preempt any State law 
     prohibiting gambling.
       ``(iii) Sense of congress.--It is the sense of Congress 
     that this subchapter shall not change which activities 
     related to horse racing may or may not be allowed under 
     Federal law. This subparagraph is intended to address 
     concerns that this subchapter could have the effect of 
     changing the existing relationship between the Interstate 
     Horseracing Act and other Federal statutes in effect on the 
     date of the enactment of this subchapter. This subchapter is 
     not intended to change that relationship. This subchapter is 
     not intended to resolve any existing disagreements over how 
     to interpret the relationship between the Interstate 
     Horseracing Act and other Federal statutes.
       ``(E) Intermediate routing.--The intermediate routing of 
     electronic data shall not determine the location or locations 
     in which a bet or wager is initiated, received, or otherwise 
     made.
       ``(11) Other terms.--
       ``(A) Credit; creditor; credit card; and card issuer.--The 
     terms `credit', `creditor', `credit card', and `card issuer' 
     have the meanings given the terms in section 103 of the Truth 
     in Lending Act (15 U.S.C. 1602).
       ``(B) Electronic fund transfer.--The term `electronic fund 
     transfer'--
       ``(i) has the meaning given the term in section 903 of the 
     Electronic Fund Transfer Act (15 U.S.C. 1693a), except that 
     the term includes transfers that would otherwise be excluded 
     under section 903(6)(E) of that Act; and
       ``(ii) includes any fund transfer covered by Article 4A of 
     the Uniform Commercial Code, as in effect in any State.
       ``(C) Financial institution.--The term `financial 
     institution' has the meaning given the term in section 903 of 
     the Electronic Fund Transfer Act, except that such term does 
     not include a casino, sports book, or other business at or 
     through which bets or wagers may be placed or received.
       ``(D) Insured depository institution.--The term `insured 
     depository institution'--
       ``(i) has the meaning given the term in section 3(c) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1813(c)); and
       ``(ii) includes an insured credit union (as defined in 
     section 101 of the Federal Credit Union Act).
       ``(E) Money transmitting business and money transmitting 
     service.--The terms `money transmitting business' and `money 
     transmitting service' have the meanings given the terms in 
     section 5330(d) (determined without regard to any regulations 
     prescribed by the Secretary thereunder).

     ``Sec. 5363. Prohibition on acceptance of any financial 
       instrument for unlawful Internet gambling

       ``No person engaged in the business of betting or wagering 
     may knowingly accept, in connection with the participation of 
     another person in unlawful Internet gambling--
       ``(1) credit, or the proceeds of credit, extended to or on 
     behalf of such other person (including credit extended 
     through the use of a credit card);
       ``(2) an electronic fund transfer, or funds transmitted by 
     or through a money transmitting business, or the proceeds of 
     an electronic fund transfer or money transmitting service, 
     from or on behalf of such other person;
       ``(3) any check, draft, or similar instrument which is 
     drawn by or on behalf of such other person and is drawn on or 
     payable at or through any financial institution; or

[[Page 21320]]

       ``(4) the proceeds of any other form of financial 
     transaction, as the Secretary and the Board of Governors of 
     the Federal Reserve System may jointly prescribe by 
     regulation, which involves a financial institution as a payor 
     or financial intermediary on behalf of or for the benefit of 
     such other person.

     ``Sec. 5364. Policies and procedures to identify and prevent 
       restricted transactions

       ``(a) Regulations.--Before the end of the 270-day period 
     beginning on the date of the enactment of this subchapter, 
     the Secretary and the Board of Governors of the Federal 
     Reserve System, in consultation with the Attorney General, 
     shall prescribe regulations (which the Secretary and the 
     Board jointly determine to be appropriate) requiring each 
     designated payment system, and all participants therein, to 
     identify and block or otherwise prevent or prohibit 
     restricted transactions through the establishment of policies 
     and procedures reasonably designed to identify and block or 
     otherwise prevent or prohibit the acceptance of restricted 
     transactions in any of the following ways:
       ``(1) The establishment of policies and procedures that--
       ``(A) allow the payment system and any person involved in 
     the payment system to identify restricted transactions by 
     means of codes in authorization messages or by other means; 
     and
       ``(B) block restricted transactions identified as a result 
     of the policies and procedures developed pursuant to 
     subparagraph (A).
       ``(2) The establishment of policies and procedures that 
     prevent or prohibit the acceptance of the products or 
     services of the payment system in connection with a 
     restricted transaction.
       ``(b) Requirements for Policies and Procedures.--In 
     prescribing regulations under subsection (a), the Secretary 
     and the Board of Governors of the Federal Reserve System 
     shall--
       ``(1) identify types of policies and procedures, including 
     nonexclusive examples, which would be deemed, as applicable, 
     to be reasonably designed to identify and block or otherwise 
     prevent or prohibit the acceptance of the products or 
     services with respect to each type of restricted transaction;
       ``(2) to the extent practical, permit any participant in a 
     payment system to choose among alternative means of 
     identifying and blocking, or otherwise preventing or 
     prohibiting the acceptance of the products or services of the 
     payment system or participant in connection with, restricted 
     transactions;
       ``(3) exempt certain restricted transactions or designated 
     payment systems from any requirement imposed under such 
     regulations, if the Secretary and the Board jointly find that 
     it is not reasonably practical to identify and block, or 
     otherwise prevent or prohibit the acceptance of, such 
     transactions; and
       ``(4) ensure that transactions in connection with any 
     activity excluded from the definition of unlawful internet 
     gambling in subparagraphs (B), (C), or (D)(i) of section 
     5362(10) are not blocked or otherwise prevented or prohibited 
     by the prescribed regulations.
       ``(c) Compliance With Payment System Policies and 
     Procedures.--A financial transaction provider shall be 
     considered to be in compliance with the regulations 
     prescribed under subsection (a) if--
       ``(1) such person relies on and complies with the policies 
     and procedures of a designated payment system of which it is 
     a member or participant to--
       ``(A) identify and block restricted transactions; or
       ``(B) otherwise prevent or prohibit the acceptance of the 
     products or services of the payment system, member, or 
     participant in connection with restricted transactions; and
       ``(2) such policies and procedures of the designated 
     payment system comply with the requirements of regulations 
     prescribed under subsection (a).
       ``(d) No Liability for Blocking or Refusing to Honor 
     Restricted Transactions.--A person that identifies and blocks 
     a transaction, prevents or prohibits the acceptance of its 
     products or services in connection with a transaction, or 
     otherwise refuses to honor a transaction--
       ``(1) that is a restricted transaction;
       ``(2) that such person reasonably believes to be a 
     restricted transaction; or
       ``(3) as a designated payment system or a member of a 
     designated payment system in reliance on the policies and 
     procedures of the payment system, in an effort to comply with 
     regulations prescribed under subsection (a),

     shall not be liable to any party for such action.
       ``(e) Regulatory Enforcement.--The requirements under this 
     section shall be enforced exclusively by--
       ``(1) the Federal functional regulators, with respect to 
     the designated payment systems and financial transaction 
     providers subject to the respective jurisdiction of such 
     regulators under section 505(a) of the Gramm-Leach-Bliley Act 
     and section 5g of the Commodities Exchange Act; and
       ``(2) the Federal Trade Commission, with respect to 
     designated payment systems and financial transaction 
     providers not otherwise subject to the jurisdiction of any 
     Federal functional regulators (including the Commission) as 
     described in paragraph (1).

     ``Sec. 5365. Civil remedies

       ``(a) Jurisdiction.--In addition to any other remedy under 
     current law, the district courts of the United States shall 
     have original and exclusive jurisdiction to prevent and 
     restrain restricted transactions by issuing appropriate 
     orders in accordance with this section, regardless of whether 
     a prosecution has been initiated under this subchapter.
       ``(b) Proceedings.--
       ``(1) Institution by federal government.--
       ``(A) In general.--The United States, acting through the 
     Attorney General, may institute proceedings under this 
     section to prevent or restrain a restricted transaction.
       ``(B) Relief.--Upon application of the United States under 
     this paragraph, the district court may enter a temporary 
     restraining order, a preliminary injunction, or an injunction 
     against any person to prevent or restrain a restricted 
     transaction, in accordance with rule 65 of the Federal Rules 
     of Civil Procedure.
       ``(2) Institution by state attorney general.--
       ``(A) In general.--The attorney general (or other 
     appropriate State official) of a State in which a restricted 
     transaction allegedly has been or will be initiated, 
     received, or otherwise made may institute proceedings under 
     this section to prevent or restrain the violation or 
     threatened violation.
       ``(B) Relief.--Upon application of the attorney general (or 
     other appropriate State official) of an affected State under 
     this paragraph, the district court may enter a temporary 
     restraining order, a preliminary injunction, or an injunction 
     against any person to prevent or restrain a restricted 
     transaction, in accordance with rule 65 of the Federal Rules 
     of Civil Procedure.
       ``(3) Indian lands.--
       ``(A) In general.--Notwithstanding paragraphs (1) and (2), 
     for a restricted transaction that allegedly has been or will 
     be initiated, received, or otherwise made on Indian lands (as 
     that term is defined in section 4 of the Indian Gaming 
     Regulatory Act)--
       ``(i) the United States shall have the enforcement 
     authority provided under paragraph (1); and
       ``(ii) the enforcement authorities specified in an 
     applicable Tribal-State compact negotiated under section 11 
     of the Indian Gaming Regulatory Act (25 U.S.C. 2710) shall be 
     carried out in accordance with that compact.
       ``(B) Rule of construction.--No provision of this section 
     shall be construed as altering, superseding, or otherwise 
     affecting the application of the Indian Gaming Regulatory 
     Act.
       ``(c) Limitation Relating to Interactive Computer 
     Services.--
       ``(1) In general.--Relief granted under this section 
     against an interactive computer service shall--
       ``(A) be limited to the removal of, or disabling of access 
     to, an online site violating section 5363, or a hypertext 
     link to an online site violating such section, that resides 
     on a computer server that such service controls or operates, 
     except that the limitation in this subparagraph shall not 
     apply if the service is subject to liability under this 
     section under section 5367;
       ``(B) be available only after notice to the interactive 
     computer service and an opportunity for the service to appear 
     are provided;
       ``(C) not impose any obligation on an interactive computer 
     service to monitor its service or to affirmatively seek facts 
     indicating activity violating this subchapter;
       ``(D) specify the interactive computer service to which it 
     applies; and
       ``(E) specifically identify the location of the online site 
     or hypertext link to be removed or access to which is to be 
     disabled.
       ``(2) Coordination with other law.--An interactive computer 
     service that does not violate this subchapter shall not be 
     liable under section 1084(d) of title 18, except that the 
     limitation in this paragraph shall not apply if an 
     interactive computer service has actual knowledge and control 
     of bets and wagers and--
       ``(A) operates, manages, supervises, or directs an Internet 
     website at which unlawful bets or wagers may be placed, 
     received, or otherwise made or at which unlawful bets or 
     wagers are offered to be placed, received, or otherwise made; 
     or
       ``(B) owns or controls, or is owned or controlled by, any 
     person who operates, manages, supervises, or directs an 
     Internet website at which unlawful bets or wagers may be 
     placed, received, or otherwise made, or at which unlawful 
     bets or wagers are offered to be placed, received, or 
     otherwise made.
       ``(d) Limitation on Injunctions Against Regulated 
     Persons.--Notwithstanding any other provision of this 
     section, and subject to section 5367, no provision of this 
     subchapter shall be construed as authorizing the Attorney 
     General of the United States, or the attorney general (or 
     other appropriate State official) of any State to institute 
     proceedings to prevent or restrain a restricted transaction 
     against any financial transaction provider, to the extent 
     that the person is acting as a financial transaction 
     provider.

     ``Sec. 5366. Criminal penalties

       ``(a) In General.--Any person who violates section 5363 
     shall be fined under title 18, imprisoned for not more than 5 
     years, or both.
       ``(b) Permanent Injunction.--Upon conviction of a person 
     under this section, the court may enter a permanent 
     injunction enjoining such person from placing, receiving, or 
     otherwise making bets or wagers or sending, receiving, or 
     inviting information assisting in the placing of bets or 
     wagers.

     ``Sec. 5367. Circumventions prohibited

       ``Notwithstanding section 5362(2), a financial transaction 
     provider, or any interactive computer service or 
     telecommunications service, may be liable under this 
     subchapter if such person has actual knowledge and control of 
     bets and wagers, and--
       ``(1) operates, manages, supervises, or directs an Internet 
     website at which unlawful bets or

[[Page 21321]]

     wagers may be placed, received, or otherwise made, or at 
     which unlawful bets or wagers are offered to be placed, 
     received, or otherwise made; or
       ``(2) owns or controls, or is owned or controlled by, any 
     person who operates, manages, supervises, or directs an 
     Internet website at which unlawful bets or wagers may be 
     placed, received, or otherwise made, or at which unlawful 
     bets or wagers are offered to be placed, received, or 
     otherwise made.''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 53 of title 31, United States Code, is 
     amended by adding at the end the following:


  ``Subchapter IV--Prohibition on Funding of Unlawful Internet Gambling

``5361. Congressional findings and purpose
``5362. Definitions
``5363. Prohibition on acceptance of any financial instrument for 
              unlawful Internet gambling
``5364. Policies and procedures to identify and prevent restricted 
              transactions
``5365. Civil remedies
``5366. Criminal penalties
``5367. Circumventions prohibited''.

     SEC. 803. INTERNET GAMBLING IN OR THROUGH FOREIGN 
                   JURISDICTIONS.

       (a) In General.--In deliberations between the United States 
     Government and any foreign country on money laundering, 
     corruption, and crime issues, the United States Government 
     should--
       (1) encourage cooperation by foreign governments and 
     relevant international fora in identifying whether Internet 
     gambling operations are being used for money laundering, 
     corruption, or other crimes;
       (2) advance policies that promote the cooperation of 
     foreign governments, through information sharing or other 
     measures, in the enforcement of this Act; and
       (3) encourage the Financial Action Task Force on Money 
     Laundering, in its annual report on money laundering 
     typologies, to study the extent to which Internet gambling 
     operations are being used for money laundering purposes.
       (b) Report Required.--The Secretary of the Treasury shall 
     submit an annual report to the Congress on any deliberations 
     between the United States and other countries on issues 
     relating to Internet gambling.
       And the Senate agree to the same.

     From the Committee on Homeland Security:
     Peter King,
     Daniel E. Lungren,
     John Linder,
     Rob Simmons,
     David Reichert,
     Michael T. McCaul,
     Don Young,
     Bennie G. Thompson,
     Loretta Sanchez,
     Jane Harman,
     Bill Pascrell, Jr.,
     From the Committee on Energy and Commerce:
     Joe Barton,
     Fred Upton,
     From the Committee on Transportation and Infrastructure:
     Bill Shuster,
     From the Committee on Science:
     Sherwood Boehlert,
     Mike Sodrel,
     Charlie Melancon,
     From the Committee on Ways and Means:
     Wm. Thomas,
     E. Clay Shaw, Jr.,
                                Managers on the Part of the House.

     From the Committee on Homeland Security and Governmental 
     Affairs:
     Susan Collins,
     Norm Coleman,
     R.F. Bennett,
     From the Committee on Commerce, and Science, and 
     Transportation:
     Ted Stevens,
     Trent Lott,
     Kay Bailey Hutchison,
     From the Committee on Finance:
     Chuck Grassley,
     Orrin Hatch,
     Max Baucus,
     From the Committee on Banking and Housing, and Urban Affairs:
     Richard Shelby,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     Conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 4954), the 
     ``Security and Accountability for Every Port Act'' or ``SAFE 
     Port Act,'' to improve maritime and cargo security through 
     enhanced layered defenses, and for other purposes, submit the 
     following joint statement to the House and the Senate in 
     explanation of the effect of the action agreed upon by the 
     managers and recommended in the accompanying Conference 
     report:
       The Senate amendment struck all of the House bill after the 
     enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment that is a substitute for the 
     House bill and the Senate amendment The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in Conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the Conferees, and minor drafting and clarifying 
     changes.
     Section 1. Short title
       Section 1 of the House bill states that the Act may be 
     cited as the ``Security and Accountability for Every Port 
     Act'' or ``SAFE Port Act.''
       Section 1 of the Senate amendment states that the Act may 
     be cited as the ``Port Security Improvement Act of 2006.''
       The Conference Report adopts the House provision so that 
     the Act may be referred to as the ``Security and 
     Accountability for Every Port Act'' or ``SAFE Port Act.''
     Section 2. Definitions
       House Section 3 defines several terms that are used in this 
     bill and are relevant to maritime and cargo security. 
     ``Appropriate Congressional Committees,'' ``Department,'' 
     ``International Supply Chain,'' and ``Secretary'' are 
     defined.
       Senate Section 2 is used to define the following relevant 
     terms: ``Appropriate Congressional Committees,'' ``Commercial 
     Seaport Personnel,'' ``Commissioner,'' ``Container,'' 
     ``Container Security Device,'' ``Department,'' 
     ``Examination,'' ``Inspection,'' ``International Supply 
     Chain,'' ``Radiation Detection Equipment,'' ``Scan,'' 
     ``Screening,'' ``Search,'' ``Secretary,'' ``Transportation 
     Disruption,'' and ``Transportation Security Incident.''
       The Conference Report adopts the Senate provision with 
     modifications to the definition of commercial seaport 
     personnel.

              TITLE I--SECURITY OF UNITED STATES SEAPORTS

                     Subtitle A--General Provisions

     Section 101. Area maritime transportation security plan to 
         include salvage response plan
       Senate Section 101 amends the Maritime Transportation 
     Security Act of 2002, (P.L. 107-295), to include a salvage 
     response plan to identify equipment capable of restoring 
     operational trade capacity and to ensure that waterways are 
     cleared after a maritime transportation security incident.
       The House bill does not contain a comparable provision.
       The Conference Report adopts the Senate provision.
     Section 102. Requirements relating to maritime facility 
         security plans
       Section 103 of the House bill amends the Maritime 
     Transportation Security Act of 2002 (P.L. 107-295), by 
     setting requirements for Facility Security Officers, 
     including the requirement of citizenship for an individual 
     having full authority to implement security actions at United 
     States seaports. This section also authorizes the Secretary 
     of the department in which the Coast Guard is operating to 
     waive the citizenship requirement based on a complete 
     background check of the individual and a review of all 
     terrorist watch lists.
       Senate section 102 is a comparable provision.
       The Conference Report adopts the Senate provision.
       The Conferees agreed to clarify that facility security 
     plans required under the Maritime Transportation Security Act 
     of 2002 (P.L. 107-295) must include provisions establishing 
     and controlling access to secure areas of a vessel or 
     facility by ``persons'' engaged in the surface transportation 
     of intermodal containers in or out of a port facility. The 
     Conferees intend for ``persons'' to include drayage 
     companies.
     Section 103. Unannounced inspections of maritime facilities
       House Section 104 amends the Maritime Transportation 
     Security Act of 2002 (P.L. 107-295) to authorize the 
     Secretary of the department in which the Coast Guard is 
     operating to verify the effectiveness of Area Maritime 
     Security Plans by conducting at least two inspections of a 
     facility per year, one of which shall be conducted without 
     prior notice to the facility.
       Senate Section 103 is a comparable provision.
       The Conference Report adopts the Senate provision.
     Section 104. Transportation security card
       House Section 105 provides a timeline for implementation of 
     the Transportation Worker Identification Credential (TWIC) 
     Program and requires the interim name-based screening of 
     individuals.
       Senate Section 104 is a comparable provision, which 
     requires the Secretary of the department in which the Coast 
     Guard is operating to ensure that individuals who have 
     undergone the Hazardous Materials Endorsement (HME) or 
     Merchant Mariner Document (MMD) background check are not 
     required to pay additional fees related to a similar 
     background check for a TWIC card. Additionally, the Senate 
     provision provides for concurrent processing of an applicant 
     for TWIC and MMD, a pilot program for vessel and facility 
     card readers, and other clarifying edits.
       The Conference Report adopts the Senate provision, as 
     modified.

[[Page 21322]]


     Section 105. Study to identify redundant background records 
         checks
       Section 105 is based upon Senate Section 1113, which 
     requires a study by the Comptroller General to identify 
     redundancies in connection with Federal background checks.
       The House bill does not include a comparable provision.
       The Conference Report adopts the Senate provision, as 
     modified to limit the scope of redundant background checks to 
     those conducted by the Department of Homeland Security.
     Section 106. Prohibition of issuance of transportation 
         security cards to persons convicted of certain felonies
       Section 105 of the Senate bill amends 46 U.S.C. 70105 to 
     insert a list of permanent and interim disqualifying crimes 
     for individuals applying for a Transportation Worker 
     Identification Credential.
       The House bill does not include a comparable provision.
       The Conference Report adopts the Senate provision, as 
     amended, which requires the Secretary of the department in 
     which the Coast Guard is operating to permanently disqualify 
     an individual applying for a transportation worker 
     identification credential that have been found guilty, or not 
     guilty by reason of insanity, of treason, espionage, 
     sedition, or a crime listed in 18 U.S.C. 1138, or conspiracy 
     to commit one of those crimes.
     Section 107. Long-Range vessel tracking
       House Section 108 establishes a deadline of April 1, 2007, 
     for the Secretary of the department in which the Coast Guard 
     is operating to develop and implement a long-range automated 
     vessel tracking system for all vessels in United States 
     territorial waters that are equipped with the Global Maritime 
     Distress and Safety System or equivalent satellite 
     technology. This section also authorizes the Secretary of 
     Homeland Security to issue regulations to establish a 
     voluntary long-range automated vessel tracking system for 
     certain vessels.
       Senate Section 106 is a comparable provision.
       The Conference Report adopts the Senate provision.
     Section 108. Establishment of interagency operational centers 
         for port security
       House Section 109, ``Maritime Command Centers,'' directs 
     the Secretary of the department in which the Coast Guard is 
     operating to consult with Federal, State, and local officials 
     to establish an integrated network of virtual and physical 
     maritime security command centers at appropriate United 
     States seaports and maritime regions. These centers serve to 
     enhance information sharing, facilitate operational 
     coordination, and facilitate incident management and 
     response. The provision further designates the Coast Guard 
     Captain of the Port as the initial incident commander in the 
     event of a transportation disruption.
       Senate Section 107, ``Establishment of Interagency 
     Operational Centers for Port Security,'' is similar to House 
     Section 109 and directs the Secretary of the Department in 
     which the Coast Guard is operating to establish additional 
     Interagency Operational Centers at all high priority ports 
     within three years. These centers would serve to enhance 
     information sharing, facilitate operational coordination, and 
     facilitate incident management and response.
       The Conference Report adopts the Senate provision, as 
     modified to include the House language, which designates the 
     Coast Guard Captain of the Port as the initial incident 
     commander in the event of a transportation security incident 
     in the maritime domain.
       The Conferees would like to clarify that in determining 
     what constitutes a ``high-priority'' port, the Secretary 
     shall consider the following: the quantity of cargo that 
     passes through the port annually, the port's proximity to 
     military or other national security assets, and the economic 
     impact to the United States resulting from a catastrophic 
     loss of that port.
     Section 109. Notice of arrival for foreign vessels on the 
         outer continental shelf
       Section 108 of the Senate bill directs the Secretary of the 
     department in which the Coast Guard is operating to update 
     and finalize its rulemaking on Notice of Arrival for foreign 
     vessels on the Outer Continental Shelf not later than 180 
     days after the date of the enactment of this Act.
       The House bill does not include a comparable provision.
       The Conference Report adopts the Senate provision.
     Section 110. Enhanced crewmember identification
       Section 107 of the House bill sets a deadline of May 15, 
     2007 for the Secretary of the department in which the Coast 
     Guard is operating, in consultation with the Attorney General 
     of the United States and the Secretary of State, to require 
     crewmembers on vessels calling at United States ports to 
     carry and present on demand any identification that the 
     Secretary deems necessary. This section also sets a deadline 
     of May 15, 2007 for the Secretary of Homeland Security, in 
     consultation with the Attorney General and the Secretary of 
     State, to establish the proper forms and process to be used 
     for identification and verification of crewmembers.
       The Senate bill contains no comparable provision.
       The Conference Report adopts the House provision, with a 
     compromise to strike May 15, 2007, and extend the deadline to 
     one year after the date of enactment.

    Subtitle B--Port Security Grants; Training and Exercise Programs

     Section 111. Risk assessment tool
       Section 111 was developed out of the Senate passed Section 
     111, ``Port Security Grants,'' to require each Area Maritime 
     Security Committee, under the direction of the Commandant of 
     the Coast Guard, to develop a Port Wide Risk Management Plan 
     that includes security goals and objectives, a management 
     selection process, and active monitoring to measure 
     effectiveness. This section also requires the Secretary to 
     make available a risk assessment tool that uses standardized 
     risk criteria, such as the Maritime Security Risk Assessment 
     Tool used by the Coast Guard, to develop the Port Wide Risk 
     Management Plan.
       The House bill contains no comparable section.
       The Conference substitute adopts the Senate provision.
       Section 111 of the Conference agreement is based on Senate 
     Section 111(b), and requires the Coast Guard to make 
     available a risk assessment tool that uses standardized risk 
     criteria, such as the Maritime Security Risk Assessment Tool 
     used by the Coast Guard, to Area Maritime Security Committees 
     for the purposes of updating Area Maritime Security Plans and 
     in applying for grants under the port security grant program 
     authorized pursuant to 46 U.S.C. 70107.
     Section 112. Port security grants
       Section 111 of the House bill amends the Homeland Security 
     Act of 2002 (P.L. 107-296) to authorize the Secretary to 
     establish a port security grant program to allocate Federal 
     financial assistance to United State seaports on the basis of 
     risk and need. Grant funds under this section may be used for 
     activities to implement Area Maritime Security Plans, remedy 
     port security vulnerabilities, conduct exercises or training 
     for the prevention and detection of, preparedness for, 
     response to, or recovery from terrorist attacks, protect 
     critical infrastructure against potential attack, and 
     establish or enhance mechanisms for sharing terrorism threat 
     information. Section 111 also authorizes $400 million for 
     each of the Fiscal Years 2007 through 2012.
       Senate Section 111 amends 46 U.S.C. 70107 to require the 
     Secretary of the Department in which the Coast Guard is 
     operating to allocate grants based on risk, allow for letters 
     of intent to be issued for multiple-year projects, and amends 
     the authorized level of funding to $400 million for each of 
     Fiscal Years 2007 through 2011. Further, the Senate bill 
     modifies 46 U.S.C. 701017(i) to specifically authorize the 
     research and development of container scanning technology on 
     straddle cars and cranes at $70 million for each of Fiscal 
     Years 2008 through 2009.
       The Conference Report adopts the Senate provision, as 
     modified to strike the specific container scanning technology 
     authorization, allow for the additional eligible costs of 
     conducting training and exercises, and the cost of 
     establishing mechanisms for sharing terrorism threat 
     information. The Conference Report requires grants under this 
     section to be awarded on the basis of risk.
       The Conferees note that ``energy'' was specifically 
     included in language to take into consideration current and 
     future ports with critical energy infrastructure, such as 
     Port Fourchon and the Louisiana Offshore Oil Platform (LOOP).
     Section 113. Port security training program
       House Section 112 amends the Homeland Security Act of 2002 
     (P.L. 107-296) to allow for the establishment of a training 
     program to enhance the capabilities of United States 
     commercial seaports to prevent, prepare for, respond to, 
     mitigate against, and recover from threatened or actual acts 
     of terrorism, natural disasters, and other emergencies. The 
     section also addresses requirements for the Program and the 
     Secretary's role in supporting the development, promulgation, 
     and regular updating of national voluntary consensus 
     standards for port security training.
       Senate Section 112 is a comparable provision.
       The Conference Report adopts the Senate provision.
     Section 114. Port security exercise program
       House Section 113 authorizes the Secretary, acting through 
     the Under Secretary for Preparedness, and in coordination 
     with the Commandant of the Coast Guard, to establish an 
     exercise program to test and evaluate the capabilities of 
     Federal, State, local and other relevant stakeholders to 
     coordinate appropriate response and recovery from threats at 
     commercial seaports.
       Senate Section 113 is a comparable provision.
       The Conference Report adopts the Senate provision.
     Section 115. Facility exercise requirements
       The Senate bill contains no comparable provision.
       The House bill contains no comparable provision.
       Section 115 of the Conference Report directs the Secretary 
     of the department in

[[Page 21323]]

     which the Coast Guard is operating to require each high risk 
     facility to conduct live or full scale exercises not less 
     than once every two years in accordance with the facility 
     security plan.

                      Subtitle C--Port Operations.

     Section 121. Domestic radiation detection and imaging
       House Section 402 requires the Secretary to deploy nuclear 
     and radiological detection systems at the 22 busiest United 
     States seaports not later than September 30, 2007, and to 
     utilize advanced technology tested in a pilot program also 
     established in this section. Within 90 days, the Secretary 
     must submit a strategy on the deployment of nuclear and 
     radiological detection systems at all remaining maritime 
     ports of entry including a risk-based deployment schedule, 
     description of equipment to be used, standard operating 
     procedures for examining containers, and evaluation of the 
     health effects of using radiation equipment. Lastly, the 
     provision requires the Director of the Domestic Nuclear 
     Detection Office (DNDO) to coordinate with other appropriate 
     Federal agencies to deploy nuclear and radiological detection 
     systems at foreign ports.
       Senate Section 121 is comparable to House Section 402, and 
     requires the Secretary of Homeland Security to develop a 
     strategy for deployment of radiation detection capabilities 
     and ensures that by December 31, 2007, all containers 
     entering the United States, through the busiest 22 seaports, 
     are scanned for radiation. Section 121 also requires the 
     Department of Homeland Security to submit a separate report 
     on the feasibility of, and plan for, the development of 
     equipment to detect other weapons of mass destruction 
     including chemical and biological threats at all United 
     States ports of entry. The section also requires the 
     Department of Homeland Security to establish an Intermodal 
     Rail Radiation Detection Test Center to identify and test 
     concepts specific to the challenges posed by on-dock 
     intermodal rail.
       The Conference Report adopts House Section 402, with 
     modification. The Conferees agree that ``shielded nuclear and 
     radiological threat material'' be inserted into subsection 
     (e) as it relates to weapons of mass destruction threats.
       The Conferees note the progress made by the Department of 
     Homeland Security in developing next general portal monitors 
     with spectroscopic capabilities and have removed the 
     requirement for a House pilot project, accordingly. Instead, 
     the appropriate use of such technology is encouraged. This 
     does not represent a requirement to scan all containers at 
     the seaports using such technology. In primary screening, 
     such technology can reduce nuisance alarms, which is of great 
     importance at very high volume ports. In secondary screening, 
     such technology can speed effective alarm resolution. It is 
     the targeted use of this technology that the House and Senate 
     support. The Conferees also note that nothing in this section 
     shall be interpreted to limit the Secretary's authority under 
     19 U.S.C. 1318 concerning the entry of containers into United 
     States ports under certain circumstances.
     Section 122. Inspection of car ferries entering from abroad
       Senate Section 123 requires the Department of Homeland 
     Security, in coordination with Department of State, to 
     develop a plan for the inspection of passengers and vehicles 
     prior to loading onto ferries bound for a United States port.
       There is no comparable provision in the House bill.
       The Conference Report adopts the Senate provision.
     Section 123. Random searches of containers
       Senate Section 124 requires the Department of Homeland 
     Security to develop and implement a plan, within one year 
     after enactment, for random physical inspection of shipping 
     containers. The random searches prescribed in this section do 
     not preclude additional container searches.
       There is no comparable provision in the House bill.
       The Conference Report adopts the Senate provision.
     Section 124. Work stoppages and employee-employer disputes
       House Section 101 amends the definition of a transportation 
     security incident, defined in 46 U.S.C. 70101(6), to clarify 
     that a ``transportation security incident'' does not include 
     labor strikes or other related events.
       Senate Section 125 also amends the definition of a 
     transportation security incident to note that the term 
     economic disruption does not include a work stoppage or 
     nonviolent employee-related action, not related to terrorism, 
     and resulting from an employee-employer' dispute.
       The Conference Report adopts the Senate provision, with an 
     agreement to strike the word ``nonviolent'' from the 
     definition of the term.
     Section 125. Threat assessment screening of port truck 
         drivers
       Senate Section 126 requires the Department of Homeland 
     Security to implement a threat assessment screening for all 
     truck drivers accessing ports that is the same screening 
     required for facility employees and longshoremen. The section 
     also requires, subject to the availability of appropriations, 
     this screening to begin within 90 days of enactment.
       House section 106 contains a similar requirement that all 
     individuals who have unescorted access to a secure area of a 
     seaport facility be checked against terrorist watch lists to 
     determine if the individual poses a threat.
       The Conference Report adopts the Senate provision, modified 
     to strike the phrase ``subject to the availability of 
     appropriations.''
     Section 126. Border patrol unit for United States Virgin 
         Islands
       House Section 123 requires the Secretary of Homeland 
     Security to establish a Border Patrol unit for the United 
     States Virgin Islands not later than 180 days after the date 
     of the enactment of this Act.
       There is no comparable provision in the Senate bill.
       The Conference Report adopts the House provision, but the 
     Conferees agree to change the word ``shall'' to ``may.'' 
     Under this agreement, the Secretary will not be required to 
     establish a Border Patrol unit for the United States Virgin 
     Islands, but he is authorized to do so if it is deemed 
     necessary. The Conference agreement also requires the 
     Secretary of Homeland Security to submit a report to the 
     appropriate congressional committees, within 180 days of 
     enactment, that includes the schedule, if any, for 
     establishing a Border Patrol unit in the United States Virgin 
     Islands. The Conferees included this provision out of 
     recognition of the increasing border security risks in the 
     United States Virgin Islands, including human smuggling and 
     drug trafficking.
     Section 127. Report on arrival and departure manifests for 
         certain commercial vessels in the United States Virgin 
         Islands
       House Section 126 requires the Secretary of Homeland 
     Security to submit, to the appropriate congressional 
     committees, a report on the impact of implementing the 
     requirements of the Immigration and Nationality Act (8 U.S.C. 
     1221) with respect to commercial vessels that are fewer than 
     300 gross tons and only operate between the territorial 
     waters of the United States Virgin Islands and the 
     territorial waters of the British Virgin Islands.
       There is no comparable provision in the Senate bill.
       The Conference Report adopts the House provision.
     Section 128. Center of excellence for maritime domain 
         awareness
       House Section 127 requires the Secretary of Homeland 
     Security to establish a university-based Center of Excellence 
     for Maritime Domain Awareness following appropriate merit-
     review processes and procedures that have been established by 
     the Secretary.
       There is no comparable provision in the Senate bill.
       The Conference Report adopts the House provision.

          Title II--Security of the International Supply Chain

                    Subtitle A--General Provisions.

     Section 201. Strategic plan to enhance the security of the 
         international supply chain
       House Section 201 amends the Homeland Security Act of 2002 
     (P.L. 107-296) to require the Secretary of Homeland Security 
     to create a strategy for improving security of containers 
     within the international supply chain. The strategy must 
     describe the roles and responsibilities of Federal, State, 
     and local governments, identify security goals and minimum 
     requirements, provide a process for enhanced intelligence 
     sharing with the private sector, streamline initiatives, and 
     recommend legislative and regulatory changes.
       Senate Section 201 requires the Department of Homeland 
     Security to develop, implement and update a strategic plan to 
     improve the security of the international cargo supply chain. 
     This section requires the plan to identify and address gaps; 
     provide improvements and goals; establish protocols for the 
     resumptions of trade including identification of the initial 
     incident commander; consider international standards for 
     container security; and allow for communication with 
     stakeholders.
       The Conference Report adopts the Senate provision, with 
     modifications. In Senate Section 201 subparagraph (6), the 
     word ``determined'' is replaced by ``recommended,'' as it 
     relates to the Commissioner's role in providing incentives 
     for additional voluntary measures to enhance cargo security. 
     The Conferees agree to extend the deadline from 180 days to 
     270 days after the date of the enactment for the Secretary to 
     submit a report to the appropriate congressional committees 
     that contains the strategic plan required under this section. 
     The requirements listed for protocols for the resumption of 
     trade required in subparagraph (10) are moved to Section 202. 
     The Conferees note that the consultation recommendations in 
     Senate Sections 201(c) and 201(e) are not mutually exclusive.
     Section 202. Post-Incident resumption of trade
       Senate Section 202 requires the initial incident commander 
     and lead department or

[[Page 21324]]

     agency carry out the protocols of the international supply 
     chain strategic plan following a maritime transportation 
     security incident. This section also requires the United 
     States Coast Guard to ensure the safe and secure transit of 
     vessels to United States ports, and recommends preference be 
     given to vessels and cargo involved in the Container Security 
     Initiative (CSI) or Customs-Trade Partnership Against 
     Terrorism (C-TPAT) for the resumption of trade. Section 202 
     requires the Secretary to ensure that there is appropriate 
     coordination among Federal officials and communication of 
     revised procedures, not inconsistent with security interests, 
     to the private sector to provide for the resumption of trade.
       House Section 102 is a comparable provision.
       The Conference Report adopts the Senate provision, as 
     modified to clarify that resumption of trade benefits may be 
     provided.
     Section 203. Automated targeting system
       House Section 201 amends the Homeland Security Act of 2002, 
     and inserts a new Section 1802, ``Transmission of Additional 
     Data Elements for Improved High Risk Targeting,'' and Section 
     1803, ``Plan to Improve the Automated Targeting System.'' 
     House Sections 1802 requires the Secretary to issue 
     regulations within one year of enactment to collect 
     additional advanced data, including appropriate elements of 
     entry data prior to loading containers overseas. House 
     Section 1803 requires the Secretary of Homeland Security, 
     within 180 days of enactment, to develop a plan to improve 
     the Automated Targeting System (ATS) in order to enhance 
     capabilities to detect high-risk containers. Section 1803 
     authorizes $5 million for each of the fiscal years 2007 
     through 2012.
       Senate Section 203 requires the Department of Homeland 
     Security to request and identify additional data (non-
     manifest and entry data elements) of container cargo moving 
     through the international supply chain. Data would be 
     analyzed to identify high-risk cargo for inspection. This 
     section includes an authorization of appropriations to fund 
     the Automated Targeting System for Fiscal Years 2008 through 
     2010 ($33 million, $35 million, $37 million respectively).
       The Conference Report adopts the House provision on the 
     Automated Targeting System, as modified, including the 
     Senate's provision generally authorizing the Automated 
     Targeting System.
     Section 204. Container security standards and procedures
       House Section 201 amends the Homeland Security Act of 2002, 
     and inserts a new Section 1804, ``Container Standards and 
     Verification Procedures.'' This section requires the 
     Secretary of Homeland Security to establish minimum standards 
     and verification procedures for securing containers in 
     transit to the United States. This section also requires all 
     containers bound for United States ports of entry meet these 
     standards within two years. In addition, Section 1804 
     requires the Secretary to regularly review and enhance these 
     security standards.
       Senate Section 204 requires the Secretary of Homeland 
     Security to promulgate a rule to establish minimum standards 
     and procedures for securing containers in transit to the 
     United States. If the rulemaking deadline is not met, the 
     Secretary is required to provide a letter to the Congress 
     explaining the reason for the Department's failure to meet 
     the deadline. This section also encourages the Department of 
     Homeland Security and other Federal agencies to promote 
     international cargo security standards.
       The Conference Report adopts the Senate provision, as 
     modified. An agreement has been reached to extend the 
     deadline from 60 days to 90 days after the date of enactment 
     of this Act for the Secretary to initiate a rulemaking 
     proceeding to establish minimum standards and procedures for 
     securing containers in transit to the United States.
       In developing standards for container security devices, the 
     Conferees direct the Secretary of Homeland Security to ensure 
     that the standards are consistent with standards promulgated 
     by international standards organizations, such as the 
     International Organization for Standardization, the 
     International Maritime Organization, and the World Customs 
     Organization.
     Section 205. Container security initiative
       House Section 201 amends the Homeland Security Act of 2002, 
     and inserts a new Section 1805, ``Container Security 
     Initiative (CSI).'' This section authorizes the CSI Program 
     and requires the Secretary of Homeland Security is required 
     to conduct a thorough security assessment at each port prior 
     to designating them as CSI ports, including an assessment of 
     the level of risk for compromise by terrorists as well as a 
     Coast Guard foreign port assessment. The section also 
     requires the Secretary of Homeland Security to notify 
     Congress prior to announcing a CSI port. In addition, the 
     section requires the Secretary of Homeland Security to set 
     standards for inspecting containers abroad and using 
     inspection technology. Section 1805 also requires the 
     Secretary of Homeland Security to evaluate options for 
     providing foreign assistance to facilitate implementation of 
     cargo security measures at foreign ports and may loan 
     inspection technology for use at a CSI port. The section also 
     requires the Secretary of Homeland Security to report 
     annually on March 1 on the status of the CSI program and an 
     assessment of the necessary personnel deployed overseas 
     through the program. Finally, Section 1805 authorizes $196 
     million for each of the fiscal years 2007 through 2012.
       Senate Section 205 authorizes the Container Security 
     Initiative (CSI) program to identify, examine, or search 
     maritime containers before cargo bound for the United States 
     is loaded in a foreign port. This section authorizes the 
     Secretary of Homeland Security to designate foreign ports as 
     part of the CSI program based upon criteria including risk, 
     trade volume and value of cargo, United States Coast Guard 
     assessments, and the commitment of the host nation to comply 
     with data sharing requirements. This section also requires 
     the Secretary of Homeland Security to establish standards for 
     the use of nonintrusive imaging and radiation detection 
     equipment at CSI ports. In addition, the Secretary of 
     Homeland Security is required to develop a plan to ensure 
     adequate staffing at CSI ports. Section 205 also requires the 
     Secretary of Homeland Security to submit a report to Congress 
     on the effectiveness of, and need for, improvements to CSI. 
     This section authorizes appropriations for fiscal years 2008 
     through 2010 ($144 million, $146 million, $153 million 
     respectively).
       The Conference Report adopts the Senate provision, with 
     several modifications. The Senate recedes to the House 
     request to strike ``an importer in'' in Senate Section 205 
     subsection (1). The Senate also recedes to the striking of 
     the words ``and value'' in subsection (2) as it relates to 
     cargo being imported into the United States. In addition, the 
     Senate recedes to the House in requiring the Secretary of 
     Homeland Security consult with appropriate Federal 
     departments and agencies and private sector stakeholders to 
     ensure that no international trade obligations are violated 
     under this section.
       It is important to note that authorities granted to the 
     Secretary of Homeland Security in this section will not 
     affect the authorities or responsibilities of any other 
     Federal agency with respect to overseas deployment of 
     radiation detection equipment. The Conferees encourage the 
     Secretary of Homeland Security to coordinate the CSI program 
     with the Department of Energy's Megaports program.

        Subtitle B--Customs-Trade Partnership Against Terrorism

     Section 211. Establishment
       House Section 201 amends the Homeland Security Act of 2002 
     and inserts a new Section 1811, which authorizes the 
     Secretary of Homeland Security to establish a voluntary 
     program (the Customs-Trade Partnership Against Terrorism) to 
     strengthen international supply chain and border security, 
     facilitate the movement of secure cargo, and provide benefits 
     to eligible participants.
       Senate Section 211 is a comparable provision.
       The Conference Report adopts the House provision, but does 
     not amend the Homeland Security Act of 2002.
     Section 212. Eligible entities
       House Section 201 amends the Homeland Security Act of 2002 
     and inserts a new Section 1812, which allows importers, 
     customs brokers, forwarders, air-sea-and landcarriers, 
     contract logistics providers, and other entities in the 
     international supply chain and intermodal transportation 
     system to apply for membership in this program.
       Senate Section 212 is a comparable provision.
       The Conference Report adopts the Senate provision.
     Section 213. Minimum requirements
       House Section 201 amends the Homeland Security Act of 2002 
     and inserts a new Section 1813, which establishes minimum 
     security and other requirements that applicants must meet to 
     be eligible to participate in the Customs-Trade Partnership 
     Against Terrorism (C-TPAT).
       Senate Section 213 is a comparable provision.
       The Conference Report adopts the Senate provision.
       The Conferees note that the requirement in Section 213(1) 
     that a company demonstrate a history of moving cargo in the 
     international supply chain should not prevent start-up 
     companies or other newly-created business entities from 
     participating in C-TPAT if they are able to demonstrate 
     adequate compliance with relevant security requirements.
     Section 214. Tier 1 participants in C-TPAT
       House Section 201 amends the Homeland Security Act of 2002 
     to insert a new Section 1814, that allows for limited 
     benefits for Customs-Trade Partnership Against Terrorism (C-
     TPAT) participants.
       Senate Section 214 allows for limited benefits for Customs-
     Trade Partnership Against Terrorism (C-TPAT) participants. 
     These benefits may include a reduction of the Automated 
     Targeting System risk score for those C-TPAT participants 
     that meet the minimum guidelines established. This section 
     also requires, to the extent practicable, the Secretary to 
     complete the Tier 1 certification process within 90 days of 
     receipt of a candidate's application.
       The Conference Report adopts the Senate provision.

[[Page 21325]]

       Senate Section 214 included a provision, which the 
     Conferees accept, clarifying that the benefits to Tier 1 C-
     TPAT benefits may include a reduction in scores assigned 
     pursuant to the Automated Targeting System (A TS) of not 
     greater than 20 percent of the high risk threshold 
     established by the Secretary. This provision ensures that a 
     C-TPAT participant's container or cargo will not be 
     classified as low-risk under the ATS simply because the 
     participant is certified for Tier 1 of C-TPAT.
     Section 215. Tier 2 participants in C-TPAT
       Senate Section 215 allows for additional benefits in the 
     form of reduced cargo examinations and priority processing to 
     those participants who meet a higher level of Customs-Trade 
     Partnership Against Terrorism (C-TPAT) security requirements. 
     Section 215 also requires the Secretary of Homeland Security 
     to validate the security measures and supply chain practices 
     of C-TPAT participants, including on-site assessments, within 
     one year of certification.
       House Section 1815 is a comparable provision.
       The Conference Report adopts the Senate provision.
     Section 216. Tier 3 participants in C-TPAT
       House Section 201 amends the Homeland Security Act of 2002 
     to insert a new Section 1816, which establishes a third tier 
     of the Customs-Trade Partnership Against Terrorism (C-TPAT) 
     program, offering increased benefits to participants that 
     demonstrate a sustained commitment to security based on 
     certain criteria. Benefits may include, among others, 
     expedited release of cargo, further reduced examinations, and 
     reduced bonding requirements.
       Senate Section 216 is similar to the House provision. 
     Section 216 authorizes the submission of additional 
     information, and notification of specific alerts.
       The Conference Report adopts the Senate provision, as 
     modified to remove the notification of specific alerts and 
     post-incident procedures provisions.
     Section 217. Consequences for lack of compliance
       House Section 201 amends the Homeland Security Act of 2002 
     to insert a new Section 1817, which allows the Secretary of 
     Homeland Security to deny benefits, in whole or in part, 
     including suspension or elimination for at least five years, 
     of any participant that fails to meet Customs-Trade 
     Partnership Against Terrorism (C-TPAT) requirements, or 
     knowingly provides false or misleading information.
       Senate Section 217 is similar to the House provision. 
     Section 217 establishes an appeals process for C-TPAT 
     participants suspended or eliminated for lack of compliance.
       The Conference Report adopts the Senate provision, as 
     modified to require the Commissioner of United States Customs 
     and Border Protection to establish procedural protections to 
     safeguard against improper revocation of benefits. These 
     procedures shall not be interpreted to impede the Secretary 
     of Homeland Security's ability to take action to protect the 
     national security of the United States.
     Section 218. Third party validations
       House Section 201 amends the Homeland Security Act of 2002 
     to insert a new Section 1818, which requires the Secretary of 
     Homeland Security to establish a pilot program to utilize 
     third party entities to conduct validations of Customs-Trade 
     Partnership Against Terrorism (C-TPAT) participants. The 
     pilot program, and any extension of the use of third party 
     validators, shall apply for Safety Act certification under 
     Section 864 of the Homeland Security Act of 2002 (P.L. 107-
     296), to enter into contractual agreements directly with the 
     C-TPAT members, and shall meet all standards for validating 
     C-TPAT participants. This section also requires the Secretary 
     of Homeland Security to report to Congress 30 days after the 
     conclusion of the year-long pilot program.
       There is no comparable Senate provision in the bill.
       Section 218 of the Conference agreement is similar to House 
     Section 1818 and requires the Secretary of Homeland Security, 
     acting through the Commissioner of United States Customs and 
     Border Protection of the Department of Homeland Security, to 
     establish a plan to implement a one year voluntary pilot 
     program to test and assess the feasibility, costs, and 
     benefits of utilizing third party entities to conduct 
     validations of CTPAT participants. The Conference Report also 
     requires the Secretary of Homeland Security to provide a 
     report to the appropriate congressional committees regarding 
     the plan within 120 days of enactment. The agreement provides 
     for the certification of third party entities and requires 
     the Secretary of Homeland Security to monitor and inspect the 
     operations of the entities conducting validations to ensure 
     that they are meeting the minimum procedures and requirements 
     for the validation of C-TPAT participants. If the Secretary 
     of Homeland Security determines that a validator is not 
     meeting the minimum procedures and requirements, the 
     Secretary of Homeland Security is required to revoke the 
     validator's certificate and review any validations conducted 
     by the entity. The agreement also requires the Secretary of 
     Homeland Security to submit a report to the appropriate 
     congressional committees detailing the results of the pilot 
     program.
     Section 219. Revalidation
       House Section 201 amends the Homeland Security Act of 2002 
     to insert a new Section 1819. This section requires 
     revalidation of Customs-Trade Partnership Against Terrorism 
     (C-TPAT) participants not less frequently than once during a 
     three-year period.
       Senate Section 218 establishes a process for revalidating 
     C-TPAT participants in tiers 2 and 3 and requires an annual 
     plan for revalidation, detailing performance measures and 
     necessary personnel requirements. The Senate language 
     requires revalidation of C-TPAT participants not less 
     frequently than once during a five-year period.
       The Conference Report adopts the Senate provision, as 
     modified to require revalidation not less frequently than 
     once during a four-year period.
     Section 220. Noncontainerized cargo
       House Section 201 amends the Homeland Security Act of 2002 
     to insert a new Section 1820, which requires the Secretary of 
     Homeland Security to consider including importers of non-
     containerized cargo as participants in the Customs-Trade 
     Partnership Against Terrorism (C-TPAT), provided program 
     requirements are met.
       Senate Section 219 is a comparable provision.
       The Conference Report adopts the Senate provision
     Section 221. C-TPAT program management
       Senate Section 220 requires the Secretary of Homeland 
     Security to establish sufficient internal quality controls 
     and record management of the Customs-Trade Partnership 
     Against Terrorism (C-TPAT) program including development of a 
     strategic plan to identify goals; annual plans to match 
     resources with workload; a standardized work program to 
     monitor progress; a record management system; and a data 
     protection program.
       There is no comparable language in the House bill.
       The Conference Report adopts the Senate provision, with an 
     agreement to merge this section with Senate-passed 221, 
     ``Resource Management Staffing,'' and Senate-passed Section 
     224, ``Report to Congress.''
       The Conferees do not intend for section 221 (c), which 
     deals with confidential information safeguards, to create a 
     new exemption to information otherwise required to be 
     disclosed under the Freedom of Information Act (5 U.S.C. 
     552).
     Section 222. Additional personnel
       Senate Section 222 requires the Secretary of Homeland 
     Security to increase, by at least 50 positions annually for 
     fiscal years 2007 through 2009, the number of personnel to 
     validate and revalidate Customs-Trade Partnership Against 
     Terrorism (C-TPAT) participants.
       There is no comparable provision in the House bill.
       The Conference Report adopts the Senate provision, as 
     modified to authorize the hiring of 50 validation personnel 
     for each of fiscal years 2008 and 2009.
     Section 223. Authorization of appropriations
       Senate Section 223 authorizes appropriations to United 
     States Customs and Border Protection in the Department of 
     Homeland Security to carry out the Customs-Trade Partnership 
     Against Terrorism (C-TPAT) provisions of Sections 211 through 
     221. The section authorizes $65 million for fiscal year 2008; 
     $72 million for fiscal year 2009; and $75.6 million for 
     fiscal year 2010. In addition to any monies appropriated to 
     Customs and Border Protection, this section authorizes funds 
     to be appropriated funds for the purpose of meeting the 
     staffing requirement provided in Section 222. This section 
     authorizes $8.5 million for fiscal year 2007; $17.6 million 
     for fiscal year 2008; $27.3 million for fiscal year 2009; 
     $28.3 million for fiscal year 2010; $29.2 million for fiscal 
     year 2011.
       House Section 1821 is a comparable provision. House Section 
     1821 authorizes $75 million for each Fiscal Year 2007 through 
     2012 for this subtitle.
       The Conference Report adopts the Senate provision, as 
     modified to reflect the changes in Conference Report Section 
     222. As a result, this section authorizes $8.5 million for 
     Fiscal Year 2008 and $17.6 million for Fiscal Year 2009 for 
     the staffing requirement in Section 222.

                  Subtitle C--Miscellaneous Provisions

     Section 231. Pilot integrated scanning system
       House Section 208, ``Integrated Container Inspection System 
     Pilot Project,'' is similar in content and purpose to Senate 
     Section 231, ``Pilot Integrated Scanning System.''
       Senate Section 231 authorizes the development of a pilot 
     program in three foreign seaports, each with unique features 
     and varying levels of trade volume to test integrated 
     scanning systems using nonintrusive inspection and radiation 
     detection equipment. This section requires full-scale pilot 
     program implementation within one year of enactment. An 
     evaluation report is required to be submitted to Congress 90 
     days after full implementation of the pilot as full 
     implementation is required as soon as practicable and 
     possible.

[[Page 21326]]

       The Conference Report adopts the Senate provision, with a 
     modification to subsection (b) ``Coordination'' to reflect 
     similar intent in the provision for the Container Security 
     Initiative (CSI). The Conference Report also modifies the 
     reporting requirement from 90 to 180 days. The Conference 
     Report also removes the implementation requirement in Senate 
     Section 231. The Conferees note that nothing in this Subtitle 
     should be read as to promote or support any particular 
     company's technology.
     Section 232. Screening and scanning of cargo containers
       House Section 202 requires an evaluation of detection 
     systems available to scan containers at foreign seaports. If 
     the Secretary determines the technology meets specific 
     performance criteria, including the ability to automatically 
     identify high-risk cargo such as a shielded nuclear device, 
     the Secretary must seek the cooperation of foreign 
     governments to scan all cargo possible. An annual report on 
     the status of implementation and foreign cooperation is 
     required.
       Senate Section 232 requires the Secretary of Homeland 
     Security to ensure that 100 percent of cargo containers 
     entering the United States through a seaport undergo 
     screening to identify high-risk containers. This section also 
     requires the Secretary of Homeland Security to ensure that 
     100 percent of the aforementioned high-risk containers be 
     scanned for radiation before such containers arrive in the 
     United States seaport facility. In addition, this directs the 
     Secretary of Homeland Security to ensure all containers 
     entering the United States are scanned when effective 
     screening equipment becomes available and other criteria are 
     met. The section requires the equipment to include both 
     nonintrusive imaging and radiation detection features, as 
     well as a means to positively identify each container so that 
     recorded data can be tagged appropriately.
       The Conference Report adopts the Senate provision, as 
     modified. This section describes the minimum performance 
     requirements that must be met by a scanning system before 
     wide scale deployment. Of particular significance is the 
     requirement for an automated alarm when dangerous material is 
     found in a container, including a shielded nuclear device. 
     The Conference Report also require the Secretary of Homeland 
     Security to provide periodic reports to Congress on the 
     status of full scale deployment. The Conferees note that full 
     scale implementation should only occur after the successful 
     completion of the three port pilot projects.
     Section 233. International cooperation and coordination
       Senate Section 232 allows the Secretary of Homeland 
     Security to provide assistance, equipment, and training to 
     facilitate the implementation of supply chain security 
     measures at ports designated by the Container Security 
     Initiative (CSI). This section also requires the Secretary of 
     Homeland Security to identify assistance programs to 
     encourage implementation of port security antiterrorism 
     measures in foreign nations and United States territories, 
     including the United States Virgin Islands, with particular 
     emphasis on ports in the Caribbean Basin. In addition, this 
     section requires Government Accountability Office to submit a 
     report on the security of Caribbean ports within 180 days.
       There is no comparable provision in the House bill.
       The Conference Report adopts the Senate provision.
     Section 234. Foreign port assessments
       House Section 204 requires the Secretary of the department 
     in which the Coast Guard is operating, acting through the 
     Commandant of the Coast Guard, to reassess security measures 
     at foreign ports every three years.
       Senate Section 234 requires the Commandant of the Coast 
     Guard to dedicate resources to complete inspections of 
     foreign ports through which trade moves destined for the 
     United States and to reinspect such ports every two years.
       The Conference Report adopts the House provision.
     Section 235. Pilot program to improve the security of empty 
         containers
       House Section 205 requires the Department of Homeland 
     Security to conduct a one-year pilot program to assess the 
     risk posed by, and improve the security of, empty containers 
     at United States seaports. This section requires the 
     Secretary of Homeland Security to prepare and submit a report 
     to the appropriate congressional committees, not later than 
     90 days after the completion of the pilot program, the 
     results of the program and a determination of whether to 
     expand this program.
       The Senate bill does not contain a comparable provision.
       The Conference Report adopts the House provision, with an 
     agreement to replace the word ``evaluate'' in subsection (a) 
     with the words ``assess the risk posed by.''
     Section 236. Information sharing relating to supply chain 
         security cooperation
       House Section 201 amends the Homeland Security Act of 2002 
     to insert a new Section 1806, which establishes continuing 
     liaison and provides for supply chain security cooperation 
     between the Department of Homeland Security and the private 
     sector. The section also provides for information sharing 
     between the private sector and the Department of Homeland 
     Security as it relates to developments and security risks in 
     the supply chain environment.
       The Senate does not contain a comparable provision.
       The Conference adopts the House provision.
       The Conferees do not intend this section to be interpreted 
     to impede or supersede existing programs such as the 
     International Trade Data System (ITDS) or the Automated 
     Commercial Environment (ACE).

                       Title III--Administration

     Section 301. Office of cargo security policy
       House Section 603 establishes a Director of Cargo Security 
     Policy within the Directorate for Policy, Planning, and 
     International Affairs of the Department of Homeland Security 
     (established in House Section 601). The section requires the 
     Director of the Office of Cargo Security Policy to advise the 
     Assistant Secretary for Policy regarding all aspects of 
     Department programs related to cargo security, coordinate 
     Department-wide policies regarding cargo security, and 
     coordinate the cargo security policies of the Department with 
     other Federal departments and agencies.
       Senate Section 301 establishes the Office of Cargo Security 
     Policy in the Department of Homeland Security, headed by a 
     Director, to coordinate all Department of Homeland Security 
     policies relating to cargo security and consult with other 
     Federal agencies in the establishment of standards and 
     regulations and to promote best practices. This section also 
     requires the Secretary of State to designate a liaison office 
     with the Department of State to assist, as appropriate, in 
     negotiating cargo security-related international agreements.
       The Conference Report adopts the Senate provision.
       The Conferees note that the creation of this new office 
     does not affect the Coast Guard's direct control over its 
     missions, assets, and personnel and the Coast Guard is not 
     required to seek the approval, permission, or clearance of 
     this office in performing any Coast Guard mission.
     Section 302. Reauthorization of Homeland Security Science and 
         Technology Advisory Committee
       Senate Section 302 reauthorizes the Homeland Security 
     Science and Technology Advisory Committee and requires the 
     Assistant Secretary for Science and Technology of the 
     Department of Homeland Security to utilize the Committee to 
     provide outside expertise in advancing cargo security 
     technology.
       There is no comparable section in the House bill.
       The Conference Report adopts the Senate provision.
     Section 303. Research, development, test, and evaluation 
         efforts in furtherance of maritime and cargo security
       Senate Section 303 assures coordination within the 
     Department of Homeland Security and with other public and 
     private sector entities for research and development of 
     maritime and cargo security innovations.
       House Section 201 amends the Homeland Security Act of 2002 
     to insert a new Section 1831, which is comparable to Senate 
     Section 303.
       The Conference Report adopts the Senate provision.

                TITLE IV--AGENCY RESOURCES AND OVERSIGHT

     Section 401. Trade and Customs Revenue Functions of the 
         Department.
       House Sections 301 and 302, among other things, establish 
     the Director of Trade policy in the Department of Homeland 
     Security.
       The Senate bill contains no comparable provision.
       The Conference Report adopts the House provision, as 
     modified to require the Secretary of Homeland Security to 
     designate a senior official in the Office of the Secretary to 
     ensure that the trade and customs revenue functions of the 
     Department of Homeland Security are coordinated within the 
     Department of Homeland Security and other Federal departments 
     and agencies and to monitor and report to the Congress on the 
     Department's mandate ensuring that trade and customs revenue 
     functions are not diminished. This section also establishes a 
     Director of Trade Policy to advise on all aspects of 
     Department of Homeland Security policies relating to the 
     trade and customs revenue functions. Section 401 requires the 
     Comptroller General of the United States to conduct a study 
     evaluating the Department of Homeland Security's compliance 
     with section 412(b) of the Homeland Security Act of 2002 
     (P.L. 107-296) and report the findings to the Congress. In 
     addition, this section requires the Secretary to ensure that 
     the requirements of section 412(b) of the Homeland Security 
     Act of 2002 (P.L. 107-296) are fully satisfied and submit a 
     report to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate by 
     September 30, 2007. Section 401 further requires the 
     Secretary of Homeland Security to consult with 
     representatives of the business community on Department of 
     Homeland Security policies

[[Page 21327]]

     that have a significant impact on trade. Finally, section 401 
     requires the Secretary of Homeland Security to notify the 
     appropriate congressional committees not later than 30 days 
     prior to the finalization of any Department of Homeland 
     Security policies, initiatives, or actions that will have a 
     major impact on trade and customs revenue functions, with 
     certain exceptions if the Secretary of Homeland Security 
     determines that it is important to the national security of 
     the United States. The notification must include a 
     description of the proposed policy initiatives or actions and 
     any comments or recommendations provided by the Commercial 
     Operations Advisory Committee (COAC) and other relevant 
     groups.
       The Conferees intend the senior official in section 
     401(a)(1) to be the current Assistant Secretary for Policy 
     under the Department of Homeland Security's current 
     organizational structure, or the Under Secretary for Policy 
     if one is created. The Conferees oppose the designation of 
     the Commissioner of United States Customs and Border 
     Protection, or another officer outside of the Office of the 
     Secretary of Homeland Security, who does not have authority 
     for Department-wide functions or oversight. It is the intent 
     of Conference that the business community consultations and 
     relevant groups referred to in Section 401(c) shall include a 
     wide cross section of the interested parties including 
     representatives of domestic industry sectors, particularly 
     those affected by enforcement actions; customs brokers and 
     other trade facilitators; and small businesses. In addition, 
     the COAC should strive to represent the wide range of 
     commercial interests impacted by the operations of the 
     Department of Homeland Security.
     Section 402. Office of International Trade; Oversight
       Senate Section 401 establishes an International Trade 
     Policy Committee and an International Trade Finance 
     Committee. This section requires both the International Trade 
     Policy Committee and the International Trade Finance 
     Committee to submit a report to the Committee on Finance of 
     the Senate and the Committee on Ways and Means of the House 
     of Representatives within 30 days of the end of each fiscal 
     year detailing their activities and identifying their future 
     priorities.
       The House bill does not include a comparable provision.
       The Conference Report adopts the Senate provision as 
     modified. It establishes the Office of International Trade, 
     headed by an Assistant Commissioner of United States Customs 
     and Border Protection of the Department of Homeland Security. 
     This section requires the transfer of the assets, functions, 
     and personnel of the Office of Strategic Trade and the Office 
     of Regulations and Rulings to the Office of International 
     Trade within 90 days of the date of enactment. In addition, 
     this section authorizes the Commissioner of United States 
     Customs and Border Protection to transfer any other assets, 
     functions, or personnel to the Office of International Trade, 
     provided that the Commissioner notifies the Congress of a 
     planned transfer 45 days prior to such transfer. However, 
     certain exceptions apply with respect to resources from 
     United States ports of entry associated with the enforcement 
     of textile and apparel laws. This section also requires the 
     Commissioner of United States Customs and Border Protection 
     to establish an International Trade Policy Committee to 
     advise the Commissioner with respect to the commercial 
     customs and trade facilitation functions of United States 
     Customs and Border Protection.
     Section 403. Resources
       Senate Section 402 requires United States Customs and 
     Border Protection to complete a resource allocation model by 
     June 30, 2007, and every two years thereafter, to determine 
     optimal staffing for commercial and revenue functions. The 
     section requires submission of these models to the Congress. 
     Section 402 authorizes appropriations to increase the number 
     of United States Customs and Border Protection personnel to 
     perform commercial operations and customs revenue functions, 
     based on the resource allocation models required by this 
     section. The section also authorizes the hiring of an 
     additional 1000 Customs and Border Protection Officers 
     (CBPOs).
       The House bill does not contain a comparable provision, 
     although House Section 121 provides for 200 additional CBPOs 
     for each of the Fiscal Years 2007 through 2012.
       The Conference Report adopts Senate Section 402, as 
     modified. The Conferees agree to include language requiring 
     the initial resource allocation model to provide for the 
     hiring of a minimum of 200 CBPOs for each of the Fiscal Years 
     2008 through 2012. The Conference agreement requires the 
     Commissioner of United States Customs and Border Protection, 
     in assigning the additional personnel, to consider the volume 
     of trade, the incidence of non-voluntarily disclosed customs 
     and trade law violations, and security priorities at the 
     United States ports of entry. The Commissioner of United 
     States Customs and Border Protection shall assign at least 10 
     additional CBPOs at each service port and the ports of entry 
     serviced by such service port no later than October 2010. 
     However, the Commissioner shall not assign an additional CBPO 
     to a port of entry that does not need such an additional 
     CBPO. The agreement also requires the Commissioner of Customs 
     and Border Protection to consult with the port directors of 
     each service port prior to assigning CBPOs to determine where 
     to assign such additional CBPOs.
       The Conferees expect that the Commissioner of United States 
     Customs and Border Protection will use the resources of 
     Section 403 to accelerate the development and promulgation of 
     regulations to implement trade agreements because the pace 
     has been too slow.
       Section 404. Negotiations
       The Conference agreement is identical to Senate Section 
     403, which requires the Department of Homeland Security to 
     work with appropriate Federal officials and international 
     organizations to harmonize customs procedures, standards, 
     requirements, and commitments to facilitate the efficient 
     flow of international trade.
       The House bill does not contain a comparable provision.
       The Conference substitute adopts the Senate provision.
     Section 405. International trade data system
       House Section 203 requires the President to establish and 
     implement the International Trade Data System (ITDS), a 
     single, uniform data system for the electronic collection, 
     dissemination, and sharing of import and export information, 
     to increase the efficiency of data submission and the 
     security of such data related to border security, trade, and 
     public health and safety of international cargoes. The 
     section requires the President to consult with private sector 
     stakeholders in developing uniform data submission 
     requirements, procedures, and schedules. Section 203 also 
     requires the President to provide a report to the appropriate 
     congressional committees on the schedule for full 
     implementation of ITDS.
       Senate Section 404 requires the Secretary of the Treasury 
     to: oversee the establishment of an electronic trade data 
     interchange system; eliminate redundant information 
     requirements; efficiently regulate the flow of commerce; and 
     enforce regulations relating to international trade. This 
     section also requires all Federal agencies that require 
     documentation for clearing or licensing the importation and 
     exportation of cargo to participate in the International 
     Trade Data System (ITDS). This section allows the Office of 
     Management and Budget (OMB) to waive the participation 
     requirement if it is in the interest of National security. In 
     addition, this section establishes an Interagency Steering 
     Committee to define the standard set of data elements to be 
     collected, stored and shared in the ITDS and requires the 
     Committee to submit a report to the Congress before the end 
     of each fiscal year.
       The Conference Report adopts the Senate provision as 
     modified.
     Section 406. In-Bond cargo
       Senate Section 405 requires the Commissioner of United 
     States Customs and Border Protection to submit a report 
     regarding in-bond cargo to the Committees on Commerce, 
     Science, and Transportation; Homeland Security and Government 
     Affairs; and Finance of the Senate and the Committees on 
     Homeland Security; Transportation and Infrastructure; and 
     Ways and Means of the House of Representatives not later than 
     June 30, 2007. The report must include: a plan for closing 
     in-bond entries at the port of arrival; an assessment of 
     whether ports of arrival should require any additional 
     information regarding shipments of in-bond cargo; and an 
     evaluation of criteria for targeting and examining in-bond 
     cargo.
       The House bill does not contain a comparable provision.
       The Conference Report adopts the Senate provision.
     Section 407. Sense of the Senate
       Senate Section 406 expresses the sense of the Senate that 
     nothing in Sections 2, 106, 111 through 113, and 201 through 
     232 of the bill shall be construed to affect the jurisdiction 
     of any standing committee of the Senate.
       The House bill does not include a comparable provision.
       The Conference Report adopts the Senate provision.

               TITLE V--DOMESTIC NUCLEAR DETECTION OFFICE

     Section 501. Establishment of Domestic Nuclear Detection 
         Office
       House Section 401 amends the Homeland Security Act of 2002 
     (P.L. 107-296) to add a new Sections 2001 through 2015, which 
     establish the Domestic Nuclear Detection Office (DNDO) in the 
     Department of Homeland Security.
       The Senate Section 801 also establishes DNDO, and is 
     similar to section 401 of the House bill.
       The Conference Report adopts the Senate provision, as 
     modified, amending the Homeland Security Act as noted below.
     Section 1801. Domestic Nuclear Detection Office
       Section 1801 of the Conference Report establishes the 
     Domestic Nuclear Detection Office (DNDO) in the Department of 
     Homeland Security, to be headed by a Director appointed by 
     the President. This section allows

[[Page 21328]]

     the Secretary of Homeland Security to request that the heads 
     of various Federal agencies provide for the reimbursable 
     detail of personnel with relevant expertise to the DNDO.
     Section 1802. Mission of office
       Section 1802 of the Conference Report defines the mission 
     of the Domestic Nuclear Detection Office (DNDO) and the 
     responsibilities of the Director of DNDO. In fulfilling its 
     mission to coordinate Federal efforts to detect and prevent 
     acts of nuclear or radiological terrorism against the United 
     States, DNDO will be responsible for: developing the global 
     nuclear detection architecture (a blueprint for an 
     international and domestic network of nuclear and 
     radiological detectors), implementing the domestic portion of 
     this architecture, and continually maintaining situational 
     awareness throughout the global architecture; enabling 
     effective information and intelligence sharing with and 
     reporting to appropriate officials including the intelligence 
     community, law enforcement agencies, the emergency response 
     community, and other appropriate authorities; and, 
     developing, coordinating and executing a research and 
     development program focused on achieving dramatically 
     improved nuclear detection capabilities.
       The Conference Report adopts the provision in Senate 
     Section 801. The Senate recedes to House language which 
     clarifies DNDO's responsibilities to include technical 
     reachback. This ensures technical experts are available for 
     interpreting detector data. This provision is critical to the 
     success of the implementation of the global nuclear detection 
     architecture. The Senate also recedes to House language 
     requiring DNDO to conduct rigorous testing and evaluation of 
     detectors and detection systems to ensure that desired 
     performance capabilities are known and can be attained under 
     realistic operating conditions prior to large scale 
     acquisition and deployment.
     Section 1803. Hiring authority
       Section 1803 of the Conference Report gives the Secretary 
     of Homeland Security flexible hiring authority designed to 
     attract qualified technical personnel needed in the Domestic 
     Nuclear Detection Office to successfully fulfill its mission.
     Section 1804. Testing authority
       Section 1804 provides the Director of the Domestic Nuclear 
     Detection Office (DNDO) with the authority to use Federal 
     facilities to test equipment and any other items related to 
     the mission of DNDO. This section ensures that test results 
     remain confidential, unless consent is provided. The House 
     and Senate confidentiality provisions are identical. Section 
     1804 also establishes a fee structure that allows for private 
     sector companies to use Federal facilities to test mission-
     related equipment. While the provision for testing services 
     in the House bill is similar to the Senate version, the 
     Conference Report adopts the Senate amendment in order to 
     provide greater clarity on fees incurred by the Government 
     for providing services to the private sector.
     Section 1805. Relationship to other department entities and 
         Federal agencies
       House Section 2001(d) and 2003(c) are similar in content 
     and purpose to Senate Section 1805, but the Senate provision 
     has a more extensive savings clause.
       Senate Section 1805 clarifies that the authorities and 
     responsibilities of the Director created in this Act will not 
     affect those of other Department entities, nor those of other 
     Federal Departments or agencies.
       The Conference Report adopts the Senate provision.
       Section 1806. Contracting and grant making authorities
       The House Section 401 contains conforming language enabling 
     the Director of DNDO to carry out research, development, 
     testing, and evaluation of nuclear and radiological detection 
     technologies through extramural and intramural programs using 
     grants, contracts, cooperative agreements and other 
     transactions. Additionally, the House bill allows the 
     Director to establish or contract with a Federally Funded 
     Research and Development Center to assist in carrying out 
     mission-related responsibilities. These authorities are 
     vested in the Director by amending Title III of the Homeland 
     Security Act of 2002 (P.L. 107-296), and thus these 
     authorities are given by the Secretary to the Director, in 
     conjunction with the Under Secretary for Science and 
     Technology.
       Senate section 802 is a comparable provision.
       The Conference Report creates authorities for the Director, 
     not through amending Title III of the Homeland Security Act 
     of 2002, but by establishing these authorities, independent 
     of the Under Secretary for Science and Technology, directly 
     within Title XVIII-Domestic Nuclear Detection Office of the 
     Homeland Security Act of 2002, as amended by this Act. 
     Section 1806 of the Conference Report also includes language 
     from a Senate amendment directing DNDO to investigate 
     radiation detection equipment in configurations suitable for 
     deployment at seaports.
     Section 502. Technology research and development investment 
         strategy for nuclear and radiological detection
       Senate Section 802 requires the development of a long-term, 
     interagency road map to guide research and development on 
     nuclear and radiological detection systems. A report on the 
     impact of this title on the Department of Homeland Security's 
     research and development efforts is also required. The 
     Director of DNDO and the Under Secretary for Science and 
     Technology are required to report annually on their efforts 
     to provide a cohesive, integrated research and development 
     strategy.
       House Section 401 amended the Homeland Security Act to 
     insert a new Section 2011. The report provision included in 
     this section, in contrast to the requirement above, is an 
     internal DNDO activity requiring the Director to inform 
     Congress of its global detection strategy, status, and 
     schedule.
       The Conference Report adopts the Senate provision.

               TITLE VI--COMMERCIAL MOBILE SERVICE ALERTS

     Section 601. Short title
       Senate Section 601 states that this title may be cited as 
     the ``Warning Alert and Response Network Act.''
       The House bill contains no comparable provision.
       The Conference Report adopts the Senate provision.
     Section 602. Federal Communications Commission duties
       The Senate bill contains no comparable section.
       The House bill contains no comparable section.
       The Conference Report adopts the Senate provision, as 
     modified. This section sets forth certain duties of the 
     Federal Communications Commission (FCC) in connection with 
     this title necessary to create a process through which 
     commercial mobile service providers (as such term is defined 
     by Section 332(d)(1) of the Communications Act of 1934) can 
     voluntarily elect to transmit emergency alerts. The FCC must 
     complete a proceeding adopting relevant technical standards, 
     protocols, procedures and other technical requirements based 
     on the recommendations of the Commercial Mobile Service Alert 
     Advisory Committee established in this title to enable the 
     transmission of emergency alerts by commercial mobile service 
     providers who elect to transmit such alerts. This section 
     also provides the FCC with authority necessary to implement 
     this title and provides liability protection to commercial 
     mobile service providers, including the vendors for such 
     providers, electing to transmit emergency alerts.
     Section 603. Commercial Mobile Service Alert Advisory 
         Committee
       Senate Section 606 establishes a Working Group to provide 
     guidance on the development of the National Alert System.
       The House bill contains no comparable section.
       The Conference Report adopts the Senate provision, as 
     modified. This section directs the Chairman of the FCC to 
     establish a Commercial Mobile Service Alert Advisory 
     Committee (Advisory Committee) that is required to develop 
     recommendations critical to enable the transmission of 
     emergency alerts by commercial mobile service providers that 
     elect to transmit such alerts. Such recommendations must be 
     submitted by the Advisory Committee to the FCC within one 
     year of enactment, and include protocols, technical 
     capabilities, and technical procedures through which 
     participating providers may receive, verify and transmit 
     alerts to subscribers. This section also requires the 
     Advisory Committee to make recommendations concerning the 
     transmission of alerts in languages other than English, to 
     the extent practicable and feasible. The membership of the 
     Advisory Committee includes representatives of State, local 
     and tribal governments, industry experts and such other 
     stakeholders as the FCC Chairman deems appropriate. This 
     section provides rules for the Advisory Committee, exempts it 
     from the requirements of the Federal Advisory Committee Act, 
     and requires its meetings to be public and announced in 
     advance.
     Section 604. Research and development
       Senate Section 607 requires the Undersecretary of Homeland 
     Security for Science and Technology and the Director of the 
     National Alert Office to establish a research and. 
     development program to help facilitate future communication 
     devices to effectively participate in the system.
       The House bill contains no comparable section.
       The Conference Report adopts the Senate provision, as 
     modified. This provision directs the Department of Homeland 
     Security's Under Secretary for Science and Technology to 
     establish a research, development, testing, and evaluation 
     program to facilitate the transmission of emergency alerts by 
     commercial mobile service providers, including the 
     transmission of geographically targeted alerts.
     Section 605. Grant program for remote community alert systems
       Senate Section 608 instructs the Administrator of National 
     Oceanic and Atmospheric Administration (NOAA) to establish a 
     grant program to provide for the installation of technologies 
     in remote communities to ensure they are effectively alerted. 
     This grant program sunsets after five years.

[[Page 21329]]

       The House bill contains no comparable section.
       The Conference Report adopts the Senate provision, as 
     modified. This provision directs the Administrator of the 
     National Oceanic and Atmospheric Administration (NOAA), in 
     consultation with the Secretary of Homeland Security, to 
     establish a grant program for outdoor alerting technologies 
     for remote communities that are effectively unserved by 
     commercial mobile service. The grant program sunsets after 
     five years and is capped at $10 million.
     Section 606. Funding
       Senate Section 613 authorizes $106 million through the 
     Digital Transition and Public Safety Fund in accordance with 
     section 3010 of the Digital Television Transition and Public 
     Safety Act of 2005
       The House bill does not contain a comparable provision.
       The Conference Report adopts the Senate provision, as 
     modified. This provision establishes the funding mechanisms 
     for this title and provides borrowing authority to accelerate 
     implementation of this title. It emphasizes that priority 
     should be given to the provisioning of backbone capability by 
     public broadcast stations to ensure sufficient funding for 
     such capability.
     Section 607. Essential services disaster assistance
       The House bill does not contain a comparable provision.
       The Senate bill does not contain a comparable provision.
       The Conference Report adopts this provision, which 
     prohibits Federal agencies, to the greatest extent 
     practicable, from denying or impeding essential service 
     provider access to a disaster site for the purpose of 
     restoring essential services or impeding the repair or 
     restoration of essential services by such providers, unless 
     exceptional circumstances apply. This provision does not 
     waive any Federal laws, regulations or policies.
     Section 608. Community disaster loans
       The House bill does not contain a comparable provision.
       The Senate bill does not contain a comparable provision.
       The Conference Report adopts this provision, which 
     increases the community disaster loan percentage to 50 
     percent of local government's annual operating income if 
     local government loses 75 percent of its tax and other 
     revenue due to a major disaster, but retains the $5 million 
     cap. This would primarily help small local governments with 
     annual budgets of under $10 million.
     Section 609. Public facilities
       The House bill does not contain a comparable provision.
       The Senate bill does not contain a comparable provision.
       The Conference Report adopts this provision, which 
     authorizes a 90 percent reimbursement for relocating a public 
     building that was destroyed by disaster in all cases, 
     regardless of whether there is soil instability.
       The Conferees note that this approach may be more efficient 
     than having the Federal Emergency Management Agency pay the 
     extra cost of raising the elevation of a rebuilt public 
     building when flood zones change, as is the case under 
     current law. Current law allows, as an alternative to 
     rebuilding in place a public building destroyed by a major 
     disaster, the option of taking a grant to replace that 
     capability in another location. The Federal contribution 75 
     percent of the Federal cost share, unless the reason for 
     relocating is soil instability, in which case the Federal 
     contribution is 90 percent of the Federal cost share.
     Section 610. Expedited payments
       The House bill does not contain a comparable provision.
       The Senate bill does not contain a comparable provision.
       The Conference Report adopts this provision, which requires 
     the Federal Emergency Management Agency to make a down-
     payment of at least 50 percent of the Federal estimated cost 
     of the reimbursement to a local government for debris removal 
     within 60 days of developing the estimate, but not later than 
     90 days after the filing of the claim.
     Section 611. Use of local contracting
       The House bill does not contain a comparable provision.
       The Senate bill does not contain a comparable provision.
       The Conference Report adopts this provision, which 
     instructs Federal agency contracting officers, when 
     practicable and feasible, to break disaster response and 
     recovery work requirements into smaller packages to 
     facilitate participation by local contractors.
       The Conferees note that in response to Hurricane Katrina, 
     Federal agencies tended to hire large contractors to perform 
     broad responsibilities over the entire disaster area, which 
     made it difficult for smaller, local firms to compete.
     Section 612. Federal emergency management agency programs
       The House bill does not contain a comparable provision.
       The Senate bill does not contain a comparable provision.
       The Conference Report adopts this provision, which requires 
     the Federal Emergency Management Agency to be responsible for 
     the radiological emergency preparedness program and the 
     chemical stockpile emergency preparedness program.
     Section 613. Homeland security definition
       The House bill does not contain a comparable provision.
       The Senate bill does not contain a comparable provision.
       The Conference Report adopts this provision, which amends 
     the Homeland Security Act of 2002 (107-296) to insert 
     ``governmental and non-governmental'' after ``local.''

                        TITLE VII--OTHER MATTERS

     Section 701. Security plan for essential air service and 
         small community airports
       Senate Section 1106 requires the Assistant Secretary of 
     Homeland Security for Transportation Security, not later than 
     60 days after the date of enactment, to submit a security 
     plan to Congress for Essential Air Service airports in the 
     United States. The section requires the plan to include 
     recommendations for improved security measures and passenger 
     and cargo screening procedures, and a timeline and cost 
     analysis for the implementation of the recommended security 
     measures and screening procedures.
       The House bill does not contain a comparable provision.
       The Conference Report adopts the Senate provision, as 
     modified to require a security plan for Essential Air Service 
     Airports in the United States and airports whose community or 
     consortia of communities receive assistance under the Small 
     Community Air Service Development Program and maintain, 
     resume, or obtain scheduled passenger air carrier service 
     with assistance from that program.
     Section 702. Disclosures regarding homeland security grants
       Senate Section 1107 requires each State or local government 
     that receives a grant from the Department of Homeland 
     Security to provide a report to the Secretary of Homeland 
     security listing all expenditures using such funds.
       The House bill does not contain a comparable provision.
       The Conference Report adopts the Senate provision.
     Section 703. Trucking security
       Senate Section 1109 requires the Secretary of 
     Transportation, in cooperation with the Secretary of Homeland 
     Security, not later than 12 months after the date of 
     enactment, to issue regulations to implement the 
     recommendations of the Department of Transportation Inspector 
     General's memorandum issued on June 4, 2004. In addition, 
     this section requires the Secretary of Transportation, in 
     conjunction with the Secretary of Homeland Security, to issue 
     a regulation to implement the recommendations contained in 
     the Report on Federal Motor Carrier Safety Administration 
     Oversight of the Commercial Driver's License Program. This 
     section also requires the Secretary of Homeland Security, 
     within 12 months of enactment, to draft guidelines for 
     Federal, State, and local law enforcement officials to 
     improve compliance with Federal immigration and customs laws. 
     In addition, this section requires the Administrator of the 
     Federal Motor Carrier Safety Administration, within 12 months 
     of enactment, to modify the final rule regarding the 
     enforcement of operating authority to establish a system or 
     process by which a carrier's operating authority can be 
     verified during a roadside inspection.
       The House bill does not contain a comparable provision.
       The Conference Report adopts the Senate provision, as 
     modified to require the Secretary of Transportation to work 
     in cooperation with the Secretary of Homeland Security in 
     issuing regulations to implement the recommendations in the 
     Report on Federal Motor Carrier Safety Administration 
     Oversight of the Commercial Driver's License Program. In 
     addition, the Conference agreement changes the time frame for 
     completion of the various tasks in this section from 12 
     months to 18 months.
     Section 704. Air and marine operations of the northern border 
         air wing
       Senate Section 1112 authorizes $40 million, in addition to 
     any other amounts authorized for United States Customs and 
     Border Protection, for each of fiscal years 2007 and 2008 for 
     the operating expenses of the Northern Border Air Wing in 
     Great Falls, Montana.
       The House bill does not contain a comparable provision.
       The Conference Report adopts the Senate provision, as 
     modified. This section authorizes such sums as are 
     appropriate in fiscal year 2008, in addition to any other 
     amounts authorized for United States Customs and Border 
     Protection, for the Northern Border Air Wing Branch in Great 
     Falls, Montana.
     Section 705. Phase-out of vessels supporting oil and gas 
         development
       Senate Section 1114 allows foreign-flag vessels to be 
     employed for the movement or transportation of anchors in the 
     Beaufort Sea.
       The House bill does not contain a comparable provision.

[[Page 21330]]

       The Conference Report adopts the Senate provision.
     Section 706. Coast Guard property in Portland, Maine
       Senate Section 1115 changes the conveyance date for United 
     States Coast Guard Property in Portland, Maine.
       The House bill does not contain a comparable provision.
       The Conference Report adopts the Senate provision.
     Section 707. Methamphetamine and methamphetamine precursor 
         chemicals
       Senate Section 1116 requires the Commissioner of the United 
     States Customs and Border Protection to conduct a study and 
     submit a report on matters relating to Methamphetamine and 
     Methamphetamine Precursor Chemicals.
       The House bill does not contain a comparable provision.
       The Conference Report adopts the Senate provision, as 
     modified to specify that the Commissioner consult with the 
     Attorney General of the United States in addition to the 
     United States Immigration and Customs Enforcement, the United 
     States Drug Enforcement Administration, and the United States 
     Department of State. The House also requested that the 
     Committee on the Judiciary in the House of Representatives 
     receive a copy of the report and that the word 
     ``international'' be inserted before the word ``mails.''
     Section 708. Aircraft charter customer and lessee 
         prescreening program
       Senate Section 1117 requires the Comptroller General to 
     assess and report on the status, implementation, and use of 
     the Department of Homeland Security's aircraft charter 
     customer and lessee pre-screening process. This section 
     requires the report to be submitted to the Committees on 
     Commerce, Science, and Transportation of the Senate and the 
     Committee on Homeland Security of the House of 
     Representatives within 180 days of the date of enactment.
       The House bill does not contain a comparable provision.
       The Conference Report adopts the Senate provision, as 
     modified to require the Comptroller to submit the report 
     within 270 days of the implementation of the Department of 
     Homeland Security's aircraft charter customer and lessee 
     prescreening process.
     Section 709. Protection of health and safety during disasters
       Senate Section 1104 authorizes the Department of Health and 
     Human Services to establish a coordinated protection, 
     assessment, and monitoring program for individuals that 
     suffer from a high exposure level to a substance of concern 
     in disaster areas. The program informs these individuals of 
     the health hazards associated with such releases, and 
     monitors the short and long-term health affects of such a 
     release. It allows for the voluntary registry in any such 
     program. The section requires the National Academy of 
     Sciences to gather a series of subject matter experts and 
     provide a report on disaster area health and environmental 
     monitoring and provide for recommendations to improve 
     monitoring and response activities at the Federal, State, and 
     local level.
       The House has no comparable provision.
       The Conference Report adopts the Senate language. The 
     Conference clarifies that the intent of this provision is to 
     provide for the protection, assessment, and monitoring of all 
     responders, whether uniformed or volunteer, and those 
     individuals living, working, or attending school within the 
     disaster area involving any mode of transportation that 
     suffer from a high exposure level to a substance of concern 
     in the disaster area.

                 Compliance With House Resolution 1000

       In compliance with H. Res. 1000, (109th Congress), the 
     following provisions have been included in H.R. 4954:
       The bill contains language requiring disclosure under House 
     Resolution 1000 on page 46, lines 16 through page 47, line 
     10. This section requires the establishment of an intermodal 
     rail radiation detection test center to be located at a port 
     with the majority of its cargo leaving the facility using on-
     dock, intermodal rail. The language is from an amendment 
     offered by Senator Cantwell.
       The bill also contains language requiring disclosure on 
     page 50, lines 1 through 10. This section requires the 
     establishment of a Border Patrol unit in the United State 
     Virgin Islands. The language is from an amendment offered by 
     Delegate Christensen.
       The bill also contains language requiring disclosure on 
     page 190, line 16 through page 191, line 3. This section 
     authorizes such sums as may be necessary for the Northern 
     Border Air Wing Branch located in Great Falls, Montana. The 
     language is from an amendment offered by Senator Baucus.
       The bill also contains language requiring disclosure on 
     page 193, lines 8 through 12. This section amends the 
     conveyance date for United States Coast Guard Property in 
     Portland, Maine. The language is from an amendment offered by 
     Senator Collins.

     From the Committee on Homeland Security:
     Peter King,
     Daniel E. Lungren,
     John Linder,
     Rob Simmons,
     David Reichert,
     Michael T. McCaul,
     Don Young,
     Bennie G. Thompson,
     Loretta Sanchez,
     Jane Harman,
     Bill Pascrell, Jr.,
     From the Committee on Energy and Commerce:
     Joe Barton,
     Fred Upton,
     From the Committee on Transportation and Infrastructure:
     Bill Shuster,
     From the Committee on Science:
     Sherwood Boehlert,
     Mike Sodrel,
     Charlie Melanon,
     From the Committee on Ways and Means:
     Wm. Thomas,
     E. Clay Shaw, Jr.,
                                Managers on the Part of the House.

     From the Committee on Homeland Security and Governmental 
     Affairs:
     Susan Collins,
     Norm Coleman,
     R.F. Bennett,
     From the Committee on Commerce, Science, and Transportation:
     Ted Stevens,
     Trent Lott,
     Kay Bailey Hutchison,
     From the Committee on Finance:
     Chuck Grassley,
     Orrin Hatch,
     Max Baucus,
     From the Committee on Banking, Housing, and Urban Affairs:
     Richard Shelby,
     Managers on the Part of the Senate.

                          ____________________