SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purpose.
Sec. 3. Memorandum of understanding.
Sec. 4. Security assessments.
Sec. 5. Security assistance grants.
Sec. 6. Intelligence sharing.
Sec. 7. Research, development, and demonstration grants.
Sec. 8. Reporting requirements.
Sec. 9. Authorization of appropriations.
Sec. 10. Sunset provision.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) throughout the world, public transportation systems 
        have been a primary target of terrorist attacks, causing 
        countless death and injuries;
            (2) 6,000 public transportation agencies operate in the 
        United States;
            (3) 14,000,000 people in the United States ride public 
        transportation each work day;
            (4) safe and secure public transportation systems are 
        essential to the Nation's economy and for significant national 
        and international public events;
            (5) the Federal Transit Administration has invested 
        $68,700,000,000 since 1992 for construction and improvements to 
        the Nation's public transportation systems;
            (6) the Federal Government appropriately invested 
        $11,000,000,000 in fiscal years 2002 and 2003 to protect our 
        Nation's aviation system and its 1,800,000 daily passengers;
            (7) the Federal Government invested $115,000,000 in fiscal 
        years 2003 and 2004 to protect public transportation systems in 
        the United States;
            (8) the Federal Government has invested $9.16 in aviation 
        security improvements per passenger, but only $0.006 in public 
        transportation security improvements per passenger;
            (9) the General Accounting Office, the Mineta Institute for 
        Surface Transportation Policy Studies, the American Public 
        Transportation Association, and other experts have reported an 
        urgent need for significant investment in transit security 
        improvements; and
            (10) the Federal Government has a duty to deter and 
        mitigate, to the greatest extent practicable, threats against 
        the Nation's public transportation systems.

SEC. 3. MEMORANDUM OF UNDERSTANDING.

    (a) In General.--Not later than 45 days after the date of enactment 
of this Act, the Secretary of Transportation shall enter into a 
memorandum of understanding with the Secretary of Homeland Security to 
define and clarify the respective public transportation security roles 
and responsibilities of the Department of Transportation and the 
Department of Homeland Security.
    (b) Contents.--The memorandum of understanding described in 
subsection (a) shall--
            (1) establish a process to develop security standards for 
        public transportation agencies;
            (2) establish funding priorities for grants from the 
        Department of Homeland Security to public transportation 
        agencies;
            (3) create a method of direct coordination with public 
        transportation agencies on security matters;
            (4) address any other issues determined to be appropriate 
        by the Secretary of Transportation and the Secretary of 
        Homeland Security; and
            (5) include a formal and permanent mechanism to ensure 
        coordination and involvement by the Department of 
        Transportation, as appropriate, in public transportation 
        security.

SEC. 4. SECURITY ASSESSMENTS.

    (a) Public Transportation Security Assessments.--
            (1) Submission.--Not later than 30 days after the date of 
        enactment of this Act, the Federal Transit Administration of 
        the Department of Transportation shall submit all public 
        transportation security assessments and all other relevant 
        information to the Department of Homeland Security.
            (2) Review.--The Secretary of Homeland Security shall 
        review and augment the security assessments received under 
        paragraph (1).
            (3) Allocations.--The assessments described in paragraph 
        (1) shall be used as the basis for allocating grant funds under 
        section 5, unless the Secretary of Homeland Security determines 
        that an adjustment is necessary to respond to an urgent threat 
        or other significant factors, after notification to the 
        Committee on Banking, Housing, and Urban Affairs of the Senate.
            (4) Security improvement priorities.--The Secretary of 
        Homeland Security shall establish security improvement 
        priorities, in consultation with the management and employee 
        representatives of each public transportation system receiving 
        an assessment that will be used by public transportation 
        agencies for any funding provided under section 5.
            (5) Updates.--The Secretary of Homeland Security shall 
        annually update the assessments referred to in this subsection 
        and conduct assessments of all transit agencies considered to 
be at greatest risk of a terrorist attack.
    (b) Use of Assessment Information.--The Secretary of Homeland 
Security shall use the information collected under subsection (a)--
            (1) to establish the process for developing security 
        guidelines for public transportation security;
            (2) to design a security improvement strategy that 
        minimizes terrorist threats to public transportation systems; 
        and
            (3) to design a security improvement strategy that 
        maximizes the efforts of public transportation systems to 
        mitigate damage from terrorist attacks.
    (c) Bus Public Transportation Systems.--The Secretary of Homeland 
Security shall conduct assessments of local bus-only public 
transportation systems to determine the specific needs of this form of 
public transportation that are appropriate to the size and nature of 
the bus system.
    (d) Rural Public Transportation Systems.--The Secretary of Homeland 
Security shall conduct assessments of selected public transportation 
systems that receive funds under section 5311 of title 49, United 
States Code, to determine the specific needs of this form of public 
transportation that are appropriate to the size and nature of the 
system.

SEC. 5. SECURITY ASSISTANCE GRANTS.

    (a) Capital Security Assistance Program.--
            (1) In general.--The Secretary of Homeland Security shall 
        award grants directly to public transportation agencies for 
        allowable capital security improvements based on the priorities 
        established under section 4(a)(4).
            (2) Allowable use of funds.--Grants awarded under paragraph 
        (1) may be used for--
                    (A) tunnel protection systems;
                    (B) perimeter protection systems;
                    (C) redundant critical operations control systems;
                    (D) chemical, biological, radiological, or 
                explosive detection systems;
                    (E) surveillance equipment;
                    (F) communications equipment;
                    (G) emergency response equipment;
                    (H) fire suppression and decontamination equipment;
                    (I) global positioning or automated vehicle locator 
                type system equipment;
                    (J) evacuation improvements; and
                    (K) other capital security improvements.
    (b) Operational Security Assistance Program.--
            (1) In general.--The Secretary of Homeland Security shall 
        award grants directly to public transportation agencies for 
        allowable operational security improvements based on the 
        priorities established under section 4(a)(4).
            (2) Allowable use of funds.--Grants awarded under paragraph 
        (1) may be used for--
                    (A) security training for transit employees, 
                including bus and rail operators, mechanics, customer 
                service, maintenance employees, transit police, and 
                security personnel;
                    (B) live or simulated drills;
                    (C) public awareness campaigns for enhanced public 
                transportation security;
                    (D) canine patrols for chemical, biological, or 
                explosives detection;
                    (E) overtime reimbursement for enhanced security 
                personnel during significant national and international 
                public events, consistent with the priorities 
                established under section 4(a)(4); and
                    (F) other appropriate security improvements 
                identified under section 4(a)(4), excluding routine, 
                ongoing personnel costs.
    (c) Congressional Notification.--Not later than 3 days before any 
grant is awarded under this section, the Secretary of Homeland Security 
shall notify the Committee on Banking, Housing, and Urban Affairs of 
the Senate of the intent to award such grant.
    (d) Transit Agency Responsibilities.--Each public transportation 
agency that receives a grant under this section shall--
            (1) identify a security coordinator to coordinate security 
        improvements;
            (2) develop a comprehensive plan that demonstrates the 
        agency's capacity for operating and maintaining the equipment 
        purchased under this subsection; and
            (3) report annually to the Department of Homeland Security 
        on the use of grant funds received under this section.
    (e) Return of Misspent Grant Funds.--If the Secretary of Homeland 
Security determines that a grantee used any portion of the grant funds 
received under this section for a purpose other than the allowable uses 
specified for that grant under this section, the grantee shall return 
any amount so used to the Treasury of the United States.

SEC. 6. INTELLIGENCE SHARING.

    (a) Intelligence Sharing.--The Secretary of Homeland Security shall 
ensure that the Department of Transportation receives appropriate and 
timely notification of all credible terrorist threats against public 
transportation assets in the United States.
    (b) Information Sharing Analysis Center.--
            (1) Establishment.--The Department of Homeland Security 
        shall fund the reasonable costs of the Information Sharing and 
        Analysis Center for Public Transportation (referred to in this 
        subsection as the ``ISAC'') established pursuant to 
        Presidential Directive 63 to protect critical infrastructure.
            (2) Public transportation agency participation.--The 
        Secretary of Homeland Security--
                    (A) shall require those public transportation 
                agencies that the Secretary determines to be at 
                significant risk of terrorist attack to participate in 
                the ISAC;
                    (B) shall encourage all other public transportation 
                agencies to participate in the ISAC; and
                    (C) shall not charge any public transportation 
                agency a fee for participation in the ISAC.

SEC. 7. RESEARCH, DEVELOPMENT, AND DEMONSTRATION GRANTS.

    (a) Grants Authorized.--The Secretary of Homeland Security, in 
consultation with the Federal Transit Administration, shall award 
grants to public or private entities to conduct research into, and 
demonstration of, technologies and methods to reduce and deter 
terrorist threats or mitigate damages resulting from terrorist attacks 
against public transportation systems.
    (b) Use of Funds.--Grants awarded under subsection (a) may be used 
for--
            (1) researching chemical, biological, radiological, or 
        explosive detection systems that do not significantly impede 
        passenger access;
            (2) researching imaging technologies;
            (3) conducting product evaluations and testing; and
            (4) researching other technologies or methods for reducing 
        or deterring terrorist attacks against public transportation 
        systems, or mitigating damage from such attacks.
    (c) Reporting Requirement.--Each entity that receives a grant under 
this section shall report annually to the Department of Homeland 
Security on the use of grant funds received under this section.
    (d) Return of Misspent Grant Funds.--If the Secretary of Homeland 
Security determines that a grantee used any portion of the grant funds 
received under this section for a purpose other than the allowable uses 
specified under subsection (b), the grantee shall return any amount so 
used to the Treasury of the United States.

SEC. 8. REPORTING REQUIREMENTS.

    (a) Annual Report to Congress.--Not later than March 31 of each 
year, the Secretary of Homeland Security shall submit a report, which 
describes the implementation of section 4 through 7, and the state of 
public transportation security in the United States, to--
            (1) the Committee on Banking, Housing, and Urban Affairs of 
        the Senate;
            (2) the Committee on Governmental Affairs of the Senate; 
        and
            (3) the Committee on Appropriations of the Senate.
    (b) Annual Report to Governors.--Not later than March 31 of each 
year, the Secretary of Homeland Security shall submit a report to the 
governor of each State in which a transit agency that has received a 
grant under this Act is operating that specifies the amount of grant 
funds distributed to each such transit agency and the use of such grant 
funds.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    (a) Capital Security Assistance Program.--There are authorized to 
be appropriated $3,500,000,000 for fiscal year 2005 to carry out the 
provisions of section 5(a), which shall remain available until 
expended.
    (b) Operational Security Assistance Program.--There are authorized 
to be appropriated to carry out the provisions of section 5(b)--
            (1) $800,000,000 for fiscal year 2005;
            (2) $500,000,000 for fiscal year 2006; and
            (3) $200,000,000 for fiscal year 2007.
    (c) Intelligence.--There are authorized to be appropriated such 
sums as may be necessary to carry out the provisions of section 6.
    (d) Research.--There are authorized to be appropriated $200,000,000 
for fiscal year 2005 to carry out the provisions of section 7, which 
shall remain available until expended.

SEC. 10. SUNSET PROVISION.

    This Act is repealed on October 1, 2007.
Public Transportation Terrorism Prevention Act of 2004 - (Sec. 3) Directs the Secretary of Transportation to enter into a memorandum of understanding (MOU) with the Secretary of Homeland Security (Secretary) to define and clarify the respective public transportation security roles and responsibilities of the Department of Transportation (DOT) and the Department of Homeland Security (DHS). Requires DOT's Federal Transit Administration to submit all public transportation security assessments to DHS and the Secretary of Homeland Security to review and augment such assessments.

(Sec. 4) Requires the Secretary to: (1) establish security improvement priorities and to update them annually; (2) conduct assessments of all transit agencies considered to be at greatest risk of a terrorist attack, of local bus-only public transportation systems, and of selected rural transportation systems; and (3) use information collected to establish the process for developing security guidelines.

(Sec. 5) Directs the Secretary to award grants directly to public transportation agencies for allowable capital security improvements (including tunnel and perimeter protection systems, and surveillance and communications equipment); and (2) operational security improvements (including security training for transit employees, drills, public awareness campaigns, and canine patrols for chemical, biological, or explosives detection). Requires grantees that have used grant funds for purposes other than for grant purposes to return any amount so used to the Treasury.

(Sec. 6) Directs the Secretary to: (1) ensure that DOT receives appropriate and timely notification of all credible terrorist threats against U.S. public transportation assets; and (2) award grants for research, development, and demonstration of technologies and methods to reduce and deter terrorist threats or mitigate damages resulting from such attacks. Requires DHS to fund the reasonable costs of an Information Sharing and Analysis Center for Public Transportation. Directs the Secretary to require public transportation agencies that have been determined to be at significant risk of terrorist attack to participate in the ISAC. Encourages other public transportation agencies to participate in the ISAC, without charge of a fee.

(Sec. 8) Directs the Secretary to report: (1) to specified congressional committees on the implementation of this Act and on the state of public transportation security in the United States; and (2) to the governor of each State in which a transit agency that has received a grant is operating on the amount of the grant and its use.

(Sec. 9) Authorizes appropriations for FY 2005 for: (1) the Capital Security Assistance Program; (2) the Operational Security Assistance Program; (3) intelligence; and (4) research.
An original bill to authorize the Secretary of Homeland Security to award grants to public transportation agencies to improve security, and for other purposes.