[United States Statutes at Large, Volume 120, 109th Congress, 2nd Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

120 STAT. 1884

Public Law 109-347
109th Congress

An Act


 
To improve maritime and cargo security through enhanced layered
defenses, and for other purposes. NOTE: Oct. 13, 2006 -  [H.R.
4954]

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, NOTE: Security and
Accountability For Every Port Act of 2006. 6 USC 901 note.
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.

[[Page 1885]]
120 STAT. 1885

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.

[[Page 1886]]
120 STAT. 1886

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. NOTE: 6 USC 901.  DEFINITIONS.

In this Act:
(1) Appropriate congressional committees.--Except as
otherwise provided, the term ``appropriate congressional
committees'' means--
(A) the Committee on Appropriations of the Senate;
(B) the Committee on Commerce, Science, and
Transportation of the Senate;
(C) the Committee on Finance of the Senate;
(D) the Committee on Homeland Security and
Governmental Affairs of the Senate;
(E) the Committee on Appropriations of the House of
Representatives;
(F) the Committee on Homeland Security of the House
of Representatives;
(G) the Committee on Transportation and
Infrastructure of the House of Representatives;
(H) the Committee on Ways and Means of the House of
Representatives; and
(I) other congressional committees, as appropriate.
(2)  Commercial operations advisory committee.--The term
``Commercial Operations Advisory Committee'' means the Advisory
Committee established pursuant to section 9503(c) of the Omnibus
Budget Reconciliation Act of 1987 (19 U.S.C. 2071 note) or any
successor committee.
(3) Commercial seaport personnel.--The term ``commercial
seaport personnel'' includes any person engaged in an activity
relating to the loading or unloading of cargo or passengers, the
movement or tracking of cargo, the maintenance and repair of
intermodal equipment, the operation of cargo-related equipment
(whether or not integral to the vessel), and the handling of
mooring lines on the dock when a vessel is made fast or let go
in the United States.
(4) Commissioner.--The term ``Commissioner'' means the
Commissioner responsible for the United States Customs and
Border Protection of the Department of Homeland Security.
(5) Container.--The term ``container'' has the meaning given
the term in the International Convention for Safe Containers,
with annexes, done at Geneva, December 2, 1972 (29 UST 3707).
(6) Container security device.--The term ``container
security device'' means a device, or system, designed, at a
minimum, to identify positively a container, to detect and
record the unauthorized intrusion of a container, and to secure
a container against tampering throughout the supply chain. Such
a device, or system, shall have a low false alarm rate as
determined by the Secretary.
(7) Department.--The term ``Department'' means the
Department of Homeland Security.

[[Page 1887]]
120 STAT. 1887

(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--

[[Page 1888]]
120 STAT. 1888

(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) NOTE: Citizenship. 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,

[[Page 1889]]
120 STAT. 1889

United States Code, and an application from that individual for a
transportation security card under this section.
``(h) Fees.--The Secretary shall ensure that the fees charged each
individual applying for a transportation security card under this
section who has passed a background check under section 5103a(d) of
title 49, United States Code, and who has a current hazardous materials
endorsement in accordance with section 1572 of title 49, Code of Federal
Regulations, and each individual with a current merchant mariners'
document who has passed a criminal background check under section
7302(d)--
``(1) are for costs associated with the issuance,
production, and management of the transportation security card,
as determined by the Secretary; and
``(2) do not include costs associated with performing a
background check for that individual, except for any incremental
costs in the event that the scope of such background checks
diverge.

``(i) Implementation Schedule.--In implementing the transportation
security card program under this section, the Secretary shall--
``(1) establish a priority for each United States port based
on risk, including vulnerabilities assessed under section 70102;
and
``(2) NOTE: Deadlines. 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.--

[[Page 1890]]
120 STAT. 1890

``(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.-- NOTE: Deadline. Notice. Public
comment. 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:

[[Page 1891]]
120 STAT. 1891

``(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) NOTE: 46 USC 70105 note. 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. NOTE: 46 USC 70105 note. 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) NOTE: 46 USC 70105 note. 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.

[[Page 1892]]
120 STAT. 1892

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.-- NOTE: Deadline. 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.

[[Page 1893]]
120 STAT. 1893

``(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) NOTE: 46 USC 70107A note. 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.-- NOTE: Deadline. 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. NOTE: 33 USC 1223 note. NOTICE OF ARRIVAL FOR
FOREIGN VESSELS ON THE OUTER CONTINENTAL
SHELF.

(a) Notice of Arrival.-- NOTE: Deadline. Regulations. 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''.

[[Page 1894]]
120 STAT. 1894

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

SEC. 111. NOTE: 46 USC 70103 note. 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.

[[Page 1895]]
120 STAT. 1895

``(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. NOTE: 6 USC 911. 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;

[[Page 1896]]
120 STAT. 1896

(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. NOTE: 6 USC 912. 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

[[Page 1897]]
120 STAT. 1897

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. NOTE: 6 USC 913. 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.

[[Page 1898]]
120 STAT. 1898

Subtitle C--Port Operations

SEC. 121. NOTE: 6 USC 921. DOMESTIC RADIATION DETECTION AND
IMAGING.

(a) Scanning Containers.-- NOTE: Deadline. 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) NOTE: Deadline. 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.--
NOTE: Deadline. Reports. 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.-- NOTE: Publication. The Secretary, acting
through the Director for Domestic Nuclear Detection and in collaboration
with the

[[Page 1899]]
120 STAT. 1899

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) NOTE: Deadline. 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. NOTE: Deadline. 6 USC 922. 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. NOTE: Deadline. 6 USC 923. 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

[[Page 1900]]
120 STAT. 1900

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. NOTE: Deadline. 6 USC 924. 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. NOTE: 6 USC 925. 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. NOTE: 6 USC 926. 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.

[[Page 1901]]
120 STAT. 1901

(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. NOTE: 6 USC 941. 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;

[[Page 1902]]
120 STAT. 1902

(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.

[[Page 1903]]
120 STAT. 1903

SEC. 202. NOTE: 6 USC 942. 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

[[Page 1904]]
120 STAT. 1904

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. NOTE: 6 USC 943. 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

[[Page 1905]]
120 STAT. 1905

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. NOTE: 6 USC 944. CONTAINER SECURITY STANDARDS AND
PROCEDURES.

(a) Establishment.--
(1) In general.-- NOTE: Deadline. 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.-- NOTE: Deadline. 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

[[Page 1906]]
120 STAT. 1906

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. NOTE: 6 USC 945. 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--

[[Page 1907]]
120 STAT. 1907

(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

[[Page 1908]]
120 STAT. 1908

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.

[[Page 1909]]
120 STAT. 1909

(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. NOTE: 6 USC 961. ESTABLISHMENT.

(a) Establishment.--The Secretary, acting through the Commissioner,
is authorized to establish a voluntary government-private sector program
(to be known as the ``Customs-Trade Partnership Against Terrorism'' or
``C-TPAT'') to strengthen and improve the overall security of the
international supply chain and United States border security, and to
facilitate the movement of secure cargo through the international supply
chain, by providing benefits to participants meeting or exceeding the
program requirements. Participants in C-TPAT shall include Tier 1
participants, Tier 2 participants, and Tier 3 participants.
(b) Minimum Security Requirements.--The Secretary, acting through
the Commissioner, shall review the minimum security requirements of C-
TPAT at least once every year and update such requirements as necessary.
SEC. 212. NOTE: 6 USC 962. 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. NOTE: 6 USC 963. 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;

[[Page 1910]]
120 STAT. 1910

(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. NOTE: 6 USC 964. 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) NOTE: Deadline. 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. NOTE: 6 USC 965. 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.-- NOTE: Deadline. 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. NOTE: 6 USC 966. 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

[[Page 1911]]
120 STAT. 1911

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. NOTE: 6 USC 967. 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.--

[[Page 1912]]
120 STAT. 1912

(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). NOTE: Deadlines. 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. NOTE: 6 USC 968. 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) NOTE: Deadline. Reports. 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) NOTE: Deadline. 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--

[[Page 1913]]
120 STAT. 1913

(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. NOTE: 6 USC 969. 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

[[Page 1914]]
120 STAT. 1914

(C) the number of participants that will be
revalidated during the following year.
SEC. 220. NOTE: 6 USC 970. 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. NOTE: 6 USC 971. 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 paricipant, including
certifications, validations, and revalidations.
(c) NOTE: Procedures. 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. NOTE: 6 USC 972. 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.

[[Page 1915]]
120 STAT. 1915

SEC. 223. NOTE: 6 USC 973. 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. NOTE: 6 USC 981. PILOT INTEGRATED SCANNING SYSTEM.

(a) Designations.-- NOTE: Deadline. 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 subsection,
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) NOTE: Deadline. 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

[[Page 1916]]
120 STAT. 1916

(6) may provide an automated notification of questionable or
high-risk cargo as a trigger for further inspection by
appropriately trained personnel.

(d) Report.--Not later than 180 days after achieving full-scale
implementation under subsection (c), the Secretary, in consultation with
the Secretary of State and, as appropriate, the Secretary of Energy,
shall submit a report to the appropriate congressional committees, that
includes--
(1) an evaluation of the lessons derived from the pilot
system implemented under this subsection;
(2) an analysis of the efficacy of the Automated Targeting
System or other relevant programs in utilizing the images
captured to examine high-risk containers;
(3) an evaluation of the effectiveness of the integrated
scanning system in detecting shielded and unshielded nuclear and
radiological material;
(4) an evaluation of software and other technologies that
are capable of automatically identifying potential anomalies in
scanned containers; and
(5) an analysis of the need and feasibility of expanding the
integrated scanning system to other container security
initiative ports, including--
(A) an analysis of the infrastructure requirements;
(B) a projection of the effect on current average
processing speed of containerized cargo;
(C) an evaluation of the scalability of the system
to meet both current and future forecasted trade flows;
(D) the ability of the system to automatically
maintain and catalog appropriate data for reference and
analysis in the event of a transportation disruption;
(E) an analysis of requirements, including costs, to
install and maintain an integrated scanning system;
(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. NOTE: 6 USC 982. 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

[[Page 1917]]
120 STAT. 1917

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. NOTE: 6 USC 983. 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

[[Page 1918]]
120 STAT. 1918

Secretary of Energy, shall identify assistance programs that
could facilitate implementation of port security antiterrorism
measures in foreign countries and territories of the United
States. The Secretary shall establish a program to utilize the
programs that are capable of implementing port security
antiterrorism measures at ports in foreign countries and
territories of the United States that the Secretary finds to
lack effective antiterrorism measures.
``(2) Caribbean basin.--The Secretary, in coordination with
the Secretary of State and in consultation with the Organization
of American States and the Commandant of the Coast Guard, shall
place particular emphasis on utilizing programs to facilitate
the implementation of port security antiterrorism measures at
the ports located in the Caribbean Basin, as such ports pose
unique security and safety threats to the United States due to--
``(A) the strategic location of such ports between
South America and the United States;
``(B) the relative openness of such ports; and
``(C) the significant number of shipments of
narcotics to the United States that are moved through
such ports.''.

(c) Report on Security at Ports in the Caribbean Basin.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the Comptroller General of the United
States shall submit a report to the appropriate congressional
committees on the security of ports in the Caribbean Basin.
(2) Contents.--The report submitted under paragraph (1)--
(A) shall include--
(i) an assessment of the effectiveness of the
measures employed to improve security at ports in
the Caribbean Basin and recommendations for any
additional measures to improve such security;
(ii) an estimate of the number of ports in the
Caribbean Basin that will not be secured by
January 1, 2007;
(iii) an estimate of the financial impact in
the United States of any action taken pursuant to
section 70110 of title 46, United States Code,
that affects trade between such ports and the
United States; and
(iv) an assessment of the additional resources
and program changes that are necessary to maximize
security at ports in the Caribbean Basin; and
(B) may be submitted in both classified and redacted
formats.

(d) Clerical Amendment.--The chapter analysis for chapter 701 of
title 46, United States Code, is amended by striking the item relating
to section 70110 and inserting the following:

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

SEC. 234. FOREIGN PORT ASSESSMENTS.

Section 70108 of title 46, United States Code, is amended by adding
at the end the following:
``(d) Periodic Reassessment.--The Secretary, acting through the
Commandant of the Coast Guard, shall reassess the effectiveness of
antiterrorism measures maintained at ports as described

[[Page 1919]]
120 STAT. 1919

under subsection (a) and of procedures described in subsection (b) not
less than once every 3 years.''.
SEC. 235. NOTE: 6 USC 984. 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. NOTE: 6 USC 985. INFORMATION SHARING RELATING TO
SUPPLY CHAIN SECURITY COOPERATION.

(a) Purposes.--The purposes of this section are--
(1) to establish continuing liaison and to provide for
supply chain security cooperation between Department and the
private sector; and
(2) to provide for regular and timely interchange of
information between the private sector and the Department
concerning developments and security risks in the supply chain
environment.

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

[[Page 1920]]
120 STAT. 1920

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. NOTE: 6 USC 239. 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) NOTE: 6 USC 1001. 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) NOTE: 6 USC 239 note. 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''.

[[Page 1921]]
120 STAT. 1921

(b) NOTE: 6 USC 191 note. 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) NOTE: 6 USC 1002. 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. NOTE: 6 USC 1003. RESEARCH, DEVELOPMENT, TEST, AND
EVALUATION EFFORTS IN FURTHERANCE OF
MARITIME AND CARGO SECURITY.

(a) In General.--The Secretary shall--
(1) direct research, development, testing, and evaluation
efforts in furtherance of maritime and cargo security;
(2) coordinate with public and private sector entities to
develop and test technologies, and process innovations in
furtherance of these objectives; and
(3) evaluate such technologies.

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

TITLE IV--AGENCY RESOURCES AND OVERSIGHT

SEC. 401. NOTE: 6 USC 115. 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''),

[[Page 1922]]
120 STAT. 1922

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) NOTE: Deadline. Maintenance of functions.--Not later
than September 30, 2007, the Secretary shall ensure that the
requirements of section 412(b) of the Homeland Security Act of
2002 (6 U.S.C. 212(b)) are fully satisfied and shall report to
the Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives regarding
implementation of this paragraph.
(5) Definition.--In this section, the term ``customs revenue
functions'' means the functions described in section 412(b)(2)
of the Homeland Security Act of 2002 (6 U.S.C. 212(b)(2)).

(c) Consultation on Trade and Customs Revenue Functions.--
(1) Business community consultations.--The Secretary shall
consult with representatives of the business community involved
in international trade, including seeking the advice and
recommendations of the Commercial Operations Advisory Committee,
on Department policies and actions that have a

[[Page 1923]]
120 STAT. 1923

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

[[Page 1924]]
120 STAT. 1924

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) NOTE: Abolished. Office of strategic
trade.--
``(i) NOTE: Deadline. 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) NOTE: Abolished. Office of regulations and
rulings.--
``(i) In general.-- NOTE: Deadline. 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). NOTE: Notification. 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,

[[Page 1925]]
120 STAT. 1925

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

[[Page 1926]]
120 STAT. 1926

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) NOTE: Deadlines. 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

[[Page 1927]]
120 STAT. 1927

and projected trade volumes, and
trends. NOTE: Applicability. 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) NOTE: Deadline. Reports. 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) NOTE: Deadline. 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 the port
director of the service port that services such port of
entry certifies to the Commissioner that an additional
Officer is not needed at such port of entry.
``(D) Report.--Not later than 60 days after the
beginning of each of the fiscal years 2008 through 2012,
the Commissioner shall submit a report to the Committee
on Finance of the Senate, the Committee on Homeland
Security and Governmental Affairs of the Senate, the
Committee on Homeland Security of the House of
Representatives, and the Committee on Ways and Means of
the House of Representatives, that describes how the
additional Officers authorized under subparagraph (B)
will be allocated

[[Page 1928]]
120 STAT. 1928

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) NOTE: Deadline. 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;

[[Page 1929]]
120 STAT. 1929

``(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). NOTE: Deadline.  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

[[Page 1930]]
120 STAT. 1930

a single portal system, operated by the United States
Customs and Border Protection, for the collection and
distribution of standard electronic import and export
data required by all participating Federal agencies.
``(C) Participation.--
``(i) In general.--All Federal agencies that
require documentation for clearing or licensing
the importation and exportation of cargo shall
participate in the ITDS.
``(ii) Waiver.--The Director of the Office of
Management and Budget may waive, in whole or in
part, the requirement for participation for any
Federal agency based on the vital national
interest of the United States.
``(D) Consultation.--The Secretary shall consult
with and assist the United States Customs and Border
Protection and other agencies in the transition from
paper to electronic format for the submission, issuance,
and storage of documents relating to data required to
enter cargo into the United States. In so doing, the
Secretary shall also consult with private sector
stakeholders, including the Commercial Operations
Advisory Committee, in developing uniform data
submission requirements, procedures, and schedules, for
the ITDS.
``(E) Coordination.--The Secretary shall be
responsible for coordinating the operation of the ITDS
among the participating agencies and the office within
the United States Customs and Border Protection that is
responsible for maintaining the ITDS.
``(2) Data elements.--
``(A) In general.--The Interagency Steering
Committee (established under paragraph (3)) shall, in
consultation with the agencies participating in the
ITDS, define the standard set of data elements to be
collected, stored, and shared in the ITDS, consistent
with laws applicable to the collection and protection of
import and export information. The Interagency Steering
Committee shall periodically review the data elements in
order to update the standard set of data elements, as
necessary.
``(B) Commitments and obligations.--The Interagency
Steering Committee shall ensure that the ITDS data
requirements are compatible with the commitments and
obligations of the United States as a member of the
World Customs Organization (WCO) and the World Trade
Organization (WTO) for the entry and movement of cargo.
``(3) NOTE: Estabishment. 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) NOTE: President. 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--

[[Page 1931]]
120 STAT. 1931

``(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. NOTE: 19 USC 1553-1. 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;

[[Page 1932]]
120 STAT. 1932

``(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. NOTE: 6 USC 591. 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) NOTE: President. Director.--The Office shall be headed by
a Director for Domestic Nuclear Detection, who shall be appointed by the
President.
``SEC. 1802. NOTE: 6 USC 592. 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;

[[Page 1933]]
120 STAT. 1933

``(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

[[Page 1934]]
120 STAT. 1934

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. NOTE: 6 USC 593. 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. NOTE: 6 USC 594. 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. NOTE: 6 USC 595. 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.

[[Page 1935]]
120 STAT. 1935

``SEC. 1806. NOTE: 6 USC 596. 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. NOTE: 6 USC 592a. TECHNOLOGY RESEARCH AND
DEVELOPMENT INVESTMENT STRATEGY FOR
NUCLEAR AND RADIOLOGICAL DETECTION.

(a) NOTE: Deadline. 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.

[[Page 1936]]
120 STAT. 1936

(c) Initial Report.--Not later than 1 year after the date of the
enactment of this Act, the Secretary shall submit a report to the
appropriate congressional committees on--
(1) the impact of this title, and the amendments made by
this title, on the responsibilities under section 302 of the
Homeland Security Act of 2002 (6 U.S.C. 182); and
(2) the efforts of the Department to coordinate, integrate,
and establish priorities for conducting all basic and applied
research, development, testing, and evaluation of technology and
systems to detect, prevent, protect, and respond to chemical,
biological, radiological, and nuclear terrorist attacks.

(d) Annual Report.--The Director for Domestic Nuclear Detection and
the Under Secretary for Science and Technology shall jointly and
annually notify Congress that the strategy and technology road map for
nuclear and radiological detection developed under subsections (a) and
(b) is consistent with the national policy and strategic plan for
identifying priorities, goals, objectives, and policies for coordinating
the Federal Government's civilian efforts to identify and develop
countermeasures to terrorist threats from weapons of mass destruction
that are required under section 302(2) of the Homeland Security Act of
2002 (6 U.S.C. 182(2)).

TITLE VI-- NOTE: Warning, Alert, and Response Network
Act. COMMERCIAL MOBILE SERVICE ALERTS
SEC. 601. NOTE: 42 USC 1201 note. SHORT TITLE.

This title may be cited as the ``Warning, Alert, and Response
Network Act''.
SEC. 602. NOTE: 42 USC 1201. FEDERAL COMMUNICATIONS COMMISSION
DUTIES.

(a) NOTE: Deadline. 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.--
NOTE: Deadline. 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

[[Page 1937]]
120 STAT. 1937

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.-- NOTE: Deadline. 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) NOTE: Procedures. 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 NOTE: Deadline. 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 NOTE: Reports. 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.

[[Page 1938]]
120 STAT. 1938

(c) Digital Television Transmission Towers Retransmission
Capability.--Within NOTE: Deadline. 90 days after the date on which
the Commission adopts relevant technical standards based on
recommendations of the Commercial Mobile Service Alert Advisory
Committee, established pursuant to section 603(a), the Commission shall
complete a proceeding to require licensees and permittees of
noncommercial educational broadcast stations or public broadcast
stations (as those terms are defined in section 397(6) of the
Communications Act of 1934 (47 U.S.C. 397(6))) to install necessary
equipment and technologies on, or as part of, any broadcast television
digital signal transmitter to enable the distribution of geographically
targeted alerts by commercial mobile service providers that have elected
to transmit emergency alerts under this section.

(d) FCC Regulation of Compliance.--The Federal Communications
Commission may enforce compliance with this title but shall have no
rulemaking authority under this title, except as provided in subsections
(a), (b), (c), and (f).
(e) Limitation of Liability.--
(1) In general.--Any commercial mobile service provider
(including its officers, directors, employees, vendors, and
agents) that transmits emergency alerts and meets its
obligations under this title shall not be liable to any
subscriber to, or user of, such person's service or equipment
for--
(A) any act or omission related to or any harm
resulting from the transmission of, or failure to
transmit, an emergency alert; or
(B) the release to a government agency or entity,
public safety, fire service, law enforcement official,
emergency medical service, or emergency facility of
subscriber information used in connection with
delivering such an alert.
(2) Election not to transmit alerts.--The election by a
commercial mobile service provider under subsection (b)(2)(A)
not to transmit emergency alerts, or to withdraw its election to
transmit such alerts under subsection (b)(2)(D) shall not, by
itself, provide a basis for liability against the provider
(including its officers, directors, employees, vendors, and
agents).

(f) NOTE: Regulations. 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. NOTE: 47 USC 1202. COMMERCIAL MOBILE SERVICE ALERT
ADVISORY COMMITTEE.

(a) Establishment.-- NOTE: Deadline. 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

[[Page 1939]]
120 STAT. 1939

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 NOTE: Deadline. 1after 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.--

[[Page 1940]]
120 STAT. 1940

(1) Initial meeting.-- NOTE: Deadline. 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. NOTE: 47 USC 1203. 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. NOTE: 47 USC 1204. GRANT PROGRAM FOR REMOTE
COMMUNITY ALERT SYSTEMS.

(a) Grant Program.-- NOTE: Deadline. 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

[[Page 1941]]
120 STAT. 1941

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) NOTE: Procedures. 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. NOTE: 47 USC 1205. 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
for7Communications 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.-- NOTE: Effective date. 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. NOTE: Reimbursement. 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. NOTE: 42 USC 5189e. 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

[[Page 1942]]
120 STAT. 1942

``(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) NOTE: President. 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.-- NOTE: Deadlines. Not later than
60 days after the date of the estimate described in paragraph
(1) and not later

[[Page 1943]]
120 STAT. 1943

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. NOTE: 6 USC 314a. FEMA PROGRAMS.

NOTE: Effective date. 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.-- NOTE: Deadline. 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. NOTE: 6 USC 470. DISCLOSURES REGARDING HOMELAND
SECURITY GRANTS.

(a) Definitions.--In this section:

[[Page 1944]]
120 STAT. 1944

(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.-- NOTE: Deadlines. Reports. 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. NOTE: Deadlines Regulations. 49 USC 31100
note. 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.

[[Page 1945]]
120 STAT. 1945

SEC. 704. NOTE: Appropriation authorization. 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. NOTE: Alaska. 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) NOTE: Deadline. Federal Register, publication. 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) NOTE: Extension date. 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) NOTE: Federal Register, publication. 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''.

[[Page 1946]]
120 STAT. 1946

SEC. 707. NOTE: 6 USC 220. 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,

[[Page 1947]]
120 STAT. 1947

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.-- NOTE: Deadline. 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) NOTE: Reports. 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. NOTE: 42 USC 300hh-14. 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;

[[Page 1948]]
120 STAT. 1948

(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) NOTE: President. 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

[[Page 1949]]
120 STAT. 1949

(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

[[Page 1950]]
120 STAT. 1950

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

[[Page 1951]]
120 STAT. 1951

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) NOTE: Contracts. Reports. 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;

[[Page 1952]]
120 STAT. 1952

(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-- NOTE: Unlawful Internet Gambling Enforcement Act of
2006. UNLAWFUL INTERNET GAMBLING ENFORCEMENT
SEC. 801. NOTE: 31 USC 5301 note. 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

[[Page 1953]]
120 STAT. 1953

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

[[Page 1954]]
120 STAT. 1954

``(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

[[Page 1955]]
120 STAT. 1955

credit, funds, instrument, or proceeds described in any
paragraph of section 5363 which the recipient is prohibited from
accepting under section 5363.
``(8) Secretary.--The term `Secretary' means the Secretary
of the Treasury.
``(9) State.--The term `State' means any State of the United
States, the District of Columbia, or any commonwealth,
territory, or other possession of the United States.
``(10) Unlawful internet gambling.--
``(A) In general.--The term `unlawful Internet
gambling' means to place, receive, or otherwise
knowingly transmit a bet or wager by any means which
involves the use, at least in part, of the Internet
where such bet or wager is unlawful under any applicable
Federal or State law in the State or Tribal lands in
which the bet or wager is initiated, received, or
otherwise made.
``(B) Intrastate transactions.--The term `unlawful
Internet gambling' does not include placing, receiving,
or otherwise transmitting a bet or wager where--
``(i) the bet or wager is initiated and
received or otherwise made exclusively within a
single State;
``(ii) the bet or wager and the method by
which the bet or wager is initiated and received
or otherwise made is expressly authorized by and
placed in accordance with the laws of such State,
and the State law or regulations include--
``(I) age and location verification
requirements reasonably designed to
block access to minors and persons
located out of such State; and
``(II) appropriate data security
standards to prevent unauthorized access
by any person whose age and current
location has not been verified in
accordance with such State's law or
regulations; and
``(iii) the bet or wager does not violate any
provision of--
``(I) the Interstate Horseracing Act
of 1978 (15 U.S.C. 3001 et seq.);
``(II) chapter 178 of title 28
(commonly known as the `Professional and
Amateur Sports Protection Act');
``(III) the Gambling Devices
Transportation Act (15 U.S.C. 1171 et
seq.); or
``(IV) the Indian Gaming Regulatory
Act (25 U.S.C. 2701 et seq.).
``(C) Intratribal transactions.--The term `unlawful
Internet gambling' does not include placing, receiving,
or otherwise transmitting a bet or wager where--
``(i) the bet or wager is initiated and
received or otherwise made exclusively--
``(I) within the Indian lands of a
single Indian tribe (as such terms are
defined under the Indian Gaming
Regulatory Act); or
``(II) between the Indian lands of 2
or more Indian tribes to the extent that
intertribal gaming is authorized by the
Indian Gaming Regulatory Act;

[[Page 1956]]
120 STAT. 1956

``(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.--

[[Page 1957]]
120 STAT. 1957

``(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.

[[Page 1958]]
120 STAT. 1958

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

``(a) Regulations.-- NOTE: Deadline. 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 subparagraph (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

[[Page 1959]]
120 STAT. 1959

``(B) otherwise prevent or prohibit the acceptance
of the products or services of the payment system,
member, or participant in connection with restricted
transactions; and
``(2) such policies and procedures of the designated payment
system comply with the requirements of regulations prescribed
under subsection (a).

``(d) No Liability for Blocking or Refusing To Honor Restricted
Transactions.--A person that identifies and blocks a transaction,
prevents or prohibits the acceptance of its products or services in
connection with a transaction, or otherwise refuses to honor a
transaction--
``(1) that is a restricted transaction;
``(2) that such person reasonably believes to be a
restricted transaction; or
``(3) as a designated payment system or a member of a
designated payment system in reliance on the policies and
procedures of the payment system, in an effort to comply with
regulations prescribed under subsection (a),

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

``Sec. 5365. Civil remedies

``(a) Jurisdiction.--In addition to any other remedy under current
law, the district courts of the United States shall have original and
exclusive jurisdiction to prevent and restrain restricted transactions
by issuing appropriate orders in accordance with this section,
regardless of whether a prosecution has been initiated under this
subchapter.
``(b) Proceedings.--
``(1) Institution by federal government.--
``(A) In general.--The United States, acting through
the Attorney General, may institute proceedings under
this section to prevent or restrain a restricted
transaction.
``(B) Relief.--Upon application of the United States
under this paragraph, the district court may enter a
temporary restraining order, a preliminary injunction,
or an injunction against any person to prevent or
restrain a restricted transaction, in accordance with
rule 65 of the Federal Rules of Civil Procedure.
``(2) Institution by state attorney general.--
``(A) In general.--The attorney general (or other
appropriate State official) of a State in which a
restricted transaction allegedly has been or will be
initiated, received, or otherwise made may institute
proceedings under this

[[Page 1960]]
120 STAT. 1960

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

[[Page 1961]]
120 STAT. 1961

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.''.

[[Page 1962]]
120 STAT. 1962

SEC. 803. NOTE: 31 USC 5361 note. 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.

Approved October 13, 2006.

LEGISLATIVE HISTORY--H.R. 4954 (S. 2008) (S. 2459):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 109-447, Pt. 1 (Comm. on Homeland Security) and 109-
711 (Comm. of Conference).
CONGRESSIONAL RECORD, Vol. 152 (2006):
May 4, considered and passed House.
Sept. 7, 8, 11-14, considered and passed Senate, amended.
Sept. 29, House and Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 42 (2006):
Oct. 13, Presidential remarks and statement.