To provide funding for port security enhancements, and for other purposes.

Summary: Port Security Improvements Act of 2003 - Makes available to the Secretary of Homeland Security for security enhancements at each port over each of the next five fiscal years 30 percent of the difference between the amount of duties collected at each port and the port's security costs.

 Requires the Secretary of the department in which the Coast Guard is operating to issue: (1) final regulations governing biometric transportation security cards within one year; and (2) regulations that establish a national minimum set of standard security requirements for each port in the United States, each facility in a port in the United States, and each vessel entering a U.S. port.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Port Security Improvements Act of 
2003''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) After the tragic terrorist events of September 11, 
        2001, the Congress initially focused on improving aviation 
        security and, in November 2001, passed the Aviation and 
        Transportation Security Act (Public Law 107-71). That Act 
        provided deadlines for specific enhancements in aviation 
        security, including for issuance of certain rules governing the 
        conduct of non-Federal parties.
            (2) The Congress then turned its focus to improving port 
        security and, in November 2002, passed the Maritime 
        Transportation Security Act of 2002 (Public Law 107-295). That 
        Act did not establish deadlines for specific enhancements in 
        port security. For example, there are no statutory deadlines 
        for interim final rules on facility and vessel security and on 
        civil penalties, nor for the rules on transportation security 
        cards.
            (3) The United States maritime transportation system 
        includes more than 300 ports with more than 3,700 cargo and 
        passenger terminals. The top 25 ports account for 98 percent of 
        the more than 6,000,000 container shipments entering United 
        States ports yearly.
            (4) The vast maritime transportation system is particularly 
        susceptible to terrorist attempts to smuggle personnel, weapons 
        of mass destruction, or other dangerous materials into the 
        United States. A large-scale terrorist attack at a United 
        States port could not only cause widespread damage but also 
        seriously affect the United States economy.
            (5) The General Accounting Office found that, during fiscal 
        years 1999, 2000, and 2001, expenditures by 13 Federal agencies 
        for the maritime transportation system averaged about 
        $3,900,000,000 per year. Three agencies accounted for 93 
        percent of these expenditures: the Corps of Engineers, the 
        Coast Guard, and the Customs Service. The cost of Customs 
        Service operations for fiscal years 1999, 2000, and 2001 was 
        $484,200,000, $538,400,000, and $577,200,000, respectively.
            (6) During that same period, 11 Federal agencies collected 
        approximately $1,000,000,000 each year from maritime 
        transportation system users. In addition, customs duties levied 
        on commodities imported through the maritime transportation 
        system averaged approximately $15,200,000,000 each year. In 
        comparison, custom duties levied on commodities imported 
        through the aviation transportation system and highway 
        transportation system averaged approximately $3,700,000,000 and 
        $900,000,000 each year, respectively.
            (7) Many of the needed maritime transportation security 
        improvements will require costly outlays for infrastructure, 
        technology, and personnel. Before September 11, 2001, the 
        Interagency Commission on Crime and Security in United States 
        Seaports estimated that the cost of upgrading security 
        infrastructure at United States ports ranged from $10,000,000 
        to $50,000,000 per port. These estimates could increase 
        dramatically due to new post-September 11 security 
        requirements. For example, for the first $93,300,000 of Federal 
        grant funds for port security made available in a supplemental 
        appropriations Act, the Federal Government received grant 
        applications for almost $700,000,000. For the second round of 
        an expected $105,000,000 of Federal grants with funds made 
        available in such Act, the Federal Government received 
        applications for $997,000,000.
            (8) In December 2002, the Coast Guard published its ``Cost 
        analysis report for vessel, facility, and port security'' 
        (Appendix C to the notice published December 30, 2002 (67 Fed. 
        Reg. 79742), which included its estimates of first-year costs 
        for maritime transportation security improvements of 
        $1,300,000,000, and 10-year costs for such improvements of 
        $6,000,000,000.

SEC. 3. FINANCING PORT SECURITY ENHANCEMENTS.

    (a) Portion of Duties Collected at Ports.--For each fiscal year, 
there shall be available to the Secretary of Homeland Security for port 
security enhancements at each port through which articles transported 
by vessel are unladen for purposes of entering the customs territory of 
the United States, 30 percent of the amount by which duties collected 
during the preceding fiscal year on such articles that so entered 
through that port exceed port security costs incurred at that port 
during the preceding fiscal year.
    (b) Definitions.--In this section--
            (1) the term ``port security enhancements'' means--
                    (A) administrative processing and associated 
                services for increasing port security, including 
                administering the transportation security cards (also 
                known as the Transportation Worker Identification 
                Credential) issued under section 70105 of title 46, 
                United States Code, including background checks and 
                training;
                    (B) physical services (including inspections of 
                cruise passengers, cargo, and empty containers) and 
                certifications;
                    (C) construction and maintenance, including 
                upgrades to security infrastructure; and
                    (D) miscellaneous services;
            (2) the term ``port security costs'' means costs incurred 
        by the Federal Government for the maritime transportation 
        system, including--
                    (A) administrative processing and associated 
                services;
                    (B) physical services, including inspections and 
                certifications;
                    (C) construction and maintenance; and
                    (D) miscellaneous services; and
            (3) the term ``vessel'' has the meaning given that term in 
        section 401 of the Tariff Act of 1930 (19 U.S.C. 1401).
    (c) Period of Application.--Amounts shall be available under 
subsection (a) only for the first five fiscal years beginning after the 
date of the enactment of this Act.

SEC. 4. DEADLINE FOR TRANSPORTATION SECURITY CARD REGULATIONS.

    Notwithstanding section 102 of the Maritime Transportation Security 
Act of 2002 (Public Law 107-295; 116 Stat. 2085; 46 U.S.C. 70101 note), 
the Secretary of the department in which the Coast Guard is operating--
            (1) shall issue interim final regulations under section 
        70105 of title 46, United States Code, by not later than 6 
        months after the date of the enactment of this Act; and
            (2) shall issue final regulations under that section by not 
        later than 12 months after the date of the enactment of this 
        Act.

SEC. 5. STANDARDIZATION OF SECURITY REQUIREMENTS FOR PORTS, VESSELS AND 
              FACILITIES.

    The Secretary of the department in which the Coast Guard is 
operating shall issue regulations under section 70103 of title 46, 
United States Code, that establish a national minimum set of standard 
security requirements for--
            (1) each port in the United States;
            (2) each facility in a port in the United States; and
            (3) each vessel entering a United States port.