To improve air cargo security.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Air Cargo Security Act''.

SEC. 2. INSPECTION OF CARGO CARRIED ABOARD PASSENGER AIRCRAFT.

    Section 44901(f) of title 49, United States Code, is amended to 
read as follows:
    ``(f) Cargo.--
            ``(1) In general.--The Under Secretary of Transportation 
        for Security shall establish systems to screen, inspect, or 
        otherwise ensure the security of all cargo that is to be 
        transported in--
                    ``(A) passenger aircraft operated by an air carrier 
                or foreign air carrier in air transportation or 
                intrastate air transportation; or
                    ``(B) all-cargo aircraft in air transportation and 
                intrastate air transportation.
            ``(2) Strategic plan.--The Under Secretary shall develop a 
        strategic plan to carry out paragraph (1).''.

SEC. 3. AIR CARGO SHIPPING.

    (a) In General.--Subchapter I of chapter 449 of title 49, United 
States Code, is amended by adding at the end the following:
``Sec. 44922. Regular inspections of air cargo shipping facilities
    ``The Under Secretary of Transportation for Security shall 
establish a system for the regular inspection of shipping facilities 
for shipments of cargo transported in air transportation or intrastate 
air transportation to ensure that appropriate security controls, 
systems, and protocols are observed, and shall enter into arrangements 
with the civil aviation authorities, or other appropriate officials, of 
foreign countries to ensure that inspections are conducted on a regular 
basis at shipping facilities for cargo transported in air 
transportation to the United States.''.
    (b) Additional Inspectors.--The Under Secretary for Transportation 
Security may increase the number of inspectors as necessary to 
implement the requirements of title 49, United States Code, as amended 
by this subtitle.
    (c) Conforming Amendment.--The chapter analysis for chapter 449 of 
title 49, United States Code, is amended by adding at the end the 
following:

``44922. Regular inspections of air cargo shipping facilities.''.

SEC. 4. CARGO CARRIED ABOARD PASSENGER AIRCRAFT.

    (a) In General.--Subchapter I of chapter 449 of title 49, United 
States Code, is further amended by adding at the end the following:
``Sec.  44923. Air cargo security
    ``(a) Database.--The Under Secretary of Transportation for Security 
shall establish an industry-wide pilot program database of known 
shippers of cargo that is to be transported in passenger aircraft 
operated by an air carrier or foreign air carrier in air transportation 
or intrastate air transportation. The Under Secretary shall use the 
results of the pilot program to improve the known shipper program.
    ``(b) Indirect Air Carriers.--
            ``(1) Random inspections.--The Under Secretary shall 
        conduct random audits, investigations, and inspections of 
        indirect air carrier facilities to determine if the indirect 
        air carriers are meeting the security requirements of this 
        title.
            ``(2) Ensuring compliance.--The Under Secretary may take 
        such actions as may be appropriate to promote and ensure 
        compliance with the security standards established under this 
        title.
            ``(3) Notice of failures.--The Under Secretary shall notify 
        the Secretary of Transportation of any indirect air carrier 
        that fails to meet security standards established under this 
        title.
            ``(4) Suspension or revocation of certificate.--The 
        Secretary, as appropriate, shall suspend or revoke any 
        certificate or authority issued under chapter 411 to an 
        indirect air carrier immediately upon the recommendation of the 
        Under Secretary. Any indirect air carrier whose certificate is 
        suspended or revoked under this subparagraph may appeal the 
        suspension or revocation in accordance with procedures 
established under this title for the appeal of suspensions and 
revocations.
            ``(5) Indirect air carrier.--In this subsection, the term 
        `indirect air carrier' has the meaning given that term in part 
        1548 of title 49, Code of Federal Regulations.
    ``(c) Consideration of Community Needs.--In implementing air cargo 
security requirements under this title, the Under Secretary may take 
into consideration the extraordinary air transportation needs of small 
or isolated communities and unique operational characteristics of 
carriers that serve those communities.''.
    (b) Assessment of Indirect Air Carrier Program.--The Under 
Secretary of Transportation for Security shall assess the security 
aspects of the indirect air carrier program under part 1548 of title 
49, Code of Federal Regulations, and report the result of the 
assessment, together with any recommendations for necessary 
modifications of the program to the Committee on Commerce, Science, and 
Transportation of the Senate and the Committee on Transportation and 
Infrastructure of the House of Representatives within 45 days after the 
date of enactment of this Act. The Under Secretary may submit the 
report and recommendations in classified form.
    (c) Report to Congress on Random Audits.--The Under Secretary shall 
report to the Committee on Commerce, Science, and Transportation of the 
Senate and the Committee on Transportation and Infrastructure of the 
House of Representatives on random screening, audits, and 
investigations of air cargo security programs based on threat 
assessments and other relevant information. The report may be submitted 
in classified form.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Transportation such sums as may be 
necessary to carry out this section.
    (e) Conforming Amendment.--The chapter analysis for chapter 449 of 
title 49, United States Code, is further amended by adding at the end 
the following:

``44923. Air cargo security.''.

SEC. 5. TRAINING PROGRAM FOR CARGO HANDLERS.

    The Under Secretary of Transportation for Security shall establish 
a training program for any persons that handle air cargo to ensure that 
the cargo is properly handled and safeguarded from security breaches.

SEC. 6. CARGO CARRIED ABOARD ALL-CARGO AIRCRAFT.

    (a) In General.--The Under Secretary of Transportation for Security 
shall establish a program requiring that air carriers operating all-
cargo aircraft have an approved plan for the security of their air 
operations area, the cargo placed aboard such aircraft, and persons 
having access to their aircraft on the ground or in flight.
    (b) Plan Requirements.--The plan shall include provisions for--
            (1) security of each carrier's air operations areas and 
        cargo acceptance areas at the airports served;
            (2) background security checks for all employees with 
        access to the air operations area;
            (3) appropriate training for all employees and contractors 
        with security responsibilities;
            (4) appropriate screening of all flight crews and persons 
        transported aboard all-cargo aircraft;
            (5) security procedures for cargo placed on all-cargo 
        aircraft as provided in section 44901(f)(1)(B) of title 49, 
        United States Code; and
            (6) additional measures deemed necessary and appropriate by 
        the Under Secretary.
    (c) Confidential Industry Review and Comment.--
            (1) Circulation of proposed program.--The Under Secretary 
        shall--
                    (A) propose a program under subsection (a) within 
                90 days after the date of enactment of this Act; and
                    (B) distribute the proposed program, on a 
                confidential basis, to those air carriers and other 
                employers to which the program will apply.
            (2) Comment period.--Any person to which the proposed 
        program is distributed under paragraph (1) may provide comments 
        on the proposed program to the Under Secretary not more than 60 
        days after the date on which the proposed program is so 
        distributed.
            (3) Final program.--The Under Secretary shall issue a final 
        program under subsection (a) not later than 45 days after the 
        last date on which comments may be provided under paragraph 
        (2). The final program shall contain time frames for the plans 
        to be implemented by each air carrier or employer to which it 
        applies.
            (4) Suspension of procedural norms.--Neither chapter 5 of 
        title 5, United States Code, nor the Federal Advisory Committee 
        Act (5 U.S.C. App.) shall apply to the program required by this 
        section.

Summary: Air Cargo Security Act - Amends Federal aviation law to require the screening of cargo that is to be transported in passenger aircraft operated by domestic and foreign air carriers in interstate and intrastate air transportation . Directs the Under Secretary of Transportation for Security under the Transportation Security Administration to develop a strategic plan to carry out such screening. Sets forth certain measures to increase the safety and security of air cargo, including the establishment of systems that: (1) provide for the regular inspection of shipping facilities for cargo shipments. (2) provide an industry-wide pilot program database of known cargo shippers. (3) train persons that handle air cargo to ensure that such cargo is properly handled and safe-guarded from security breaches. And (4) require air carriers operating all-cargo aircraft to have an approved plan for the security of their air operations area, the cargo placed aboard the aircraft, and persons having access to their aircraft on the ground or in flight. Directs the Under Secretary to conduct random audits, investigations, and inspections of indirect air carrier facilities to determine if the indirect air carriers are meeting the security requirements of this Act.