[House Report 109-711]
[From the U.S. Government Publishing Office]



109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-711

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



 
                             SAFE PORT ACT

                                _______
                                

               September 29, 2006.--Ordered to be printed

                                _______
                                

 Mr. King of New York, from the committee of conference, submitted the 
                               following

                           CONFERENCE REPORT

                        [To accompany H.R. 4954]

    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.

               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 InternationalConvention 
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 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 materialsendorsement 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 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.--
            ``(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 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 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 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;
            (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 programrequirements. 
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 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 forreference and analysis in the event of 
a transportation disruption;
                    (E) an analysis of requirements, including 
                costs, to install and maintain an integrated 
                scanning system;
                    (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 atports 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 chainsecurity 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').
    ``(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 theCoast 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 havea 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.
            (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 pursuant to subparagraph 
                (B)(ii) if theport 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 WorldTrade 
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 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;
            ``(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 roadmap 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 signaltransmitter 
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 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--
            ``(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 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 
                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
                                    ``(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 
whichthe 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
            ``(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 injunctionagainst 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 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, 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.

       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.
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 thathave 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 States 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 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 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, and $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.
      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 (ATS) 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 C-TPAT 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.
      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 requires 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 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 new Sections 2001 through 2015, 
which establish the Domestic Nuclear Detection Office (DNDO) in 
the Department of Homeland Security.
      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 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 rulesfor 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.
      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 (P.L. 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.
      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 Committee 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 States 
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 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, 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.

                                  
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