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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4251 Referred in Senate (RFS)]

112th CONGRESS
  2d Session
                                H. R. 4251

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 29, 2012

    Received; read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 AN ACT

 
   To authorize, enhance, and reform certain port security programs 
  through increased efficiency and risk-based coordination within the 
        Department of Homeland Security, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Securing Maritime Activities through 
Risk-based Targeting for Port Security Act'' or the ``SMART Port 
Security Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is the following:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
    TITLE I--DEPARTMENT OF HOMELAND SECURITY PORT SECURITY PROGRAMS

Sec. 101. Updates of maritime operations coordination plan.
Sec. 102. U.S. Customs and Border Protection Office of Air and Marine 
                            Asset Deployment.
Sec. 103. Cost-benefit analysis of co-locating operational entities.
Sec. 104. Study of maritime security redundancies.
Sec. 105. Acquisition and strategic sourcing of marine and aviation 
                            assets.
Sec. 106. Port security grant program management.
Sec. 107. Port security grant funding for mandated security personnel.
Sec. 108. Interagency operational centers for port security.
Sec. 109. Report on DHS aviation assets.
Sec. 110. Small vessel threat analysis.
Sec. 111. U.S. Customs and Border Protection workforce plan.
Sec. 112. Integrated cross-border maritime operations between the 
                            United States and Canada.
Sec. 113. Training and certification of training for port security.
Sec. 114. Northern border unmanned aerial vehicle pilot project.
Sec. 115. Recognition of port security assessments conducted by other 
                            entities.
Sec. 116. Use of port security grant funds for replacement of security 
                            equipment or facilities.
                TITLE II--MARITIME SUPPLY CHAIN SECURITY

Sec. 201. Strategic plan to enhance the security of the international 
                            supply chain.
Sec. 202. Customs-Trade Partnership Against Terrorism.
Sec. 203. Recognition of other countries' trusted shipper programs.
Sec. 204. Pilot program for inclusion of non-asset based third party 
                            logistics providers in the Customs-Trade 
                            Partnership Against Terrorism.
Sec. 205. Transportation Worker Identification Credential process 
                            reform.
Sec. 206. Expiration of certain transportation worker identification 
                            credentials.
Sec. 207. Securing the Transportation Worker Identification Credential 
                            against use by unauthorized aliens.
Sec. 208. Report on Federal transportation security credentialing 
                            programs.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' has the meaning given 
        such term in section 2 of the Homeland Security Act of 2002 (6 
        U.S.C. 101).
            (2) Department.--The term ``Department'' means the 
        Department of Homeland Security.
            (3) Function.--The term ``function'' includes authorities, 
        powers, rights, privileges, immunities, programs, projects, 
        activities, duties, and responsibilities.
            (4) Local government.--The term ``local government'' 
        means--
                    (A) a county, municipality, city, town, township, 
                local public authority, school district, special 
                district, intrastate district, council of governments 
                (regardless of whether the council of governments is 
                incorporated as a nonprofit corporation under State 
                law), regional or interstate government entity, or 
                agency or instrumentality of a local government;
                    (B) an Indian tribe or authorized tribal 
                organization, or in Alaska a Native village or Alaska 
                Regional Native Corporation; and
                    (C) a rural community, unincorporated town or 
                village, or other public entity.
            (5) Personnel.--The term ``personnel'' means officers and 
        employees.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Homeland Security.
            (7) State.--The term ``State'' means any State of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the United States Virgin Islands, Guam, American 
        Samoa, the Commonwealth of the Northern Mariana Islands, and 
        any possession of the United States.
            (8) Terrorism.--The term ``terrorism'' has the meaning 
        given such term in section 2 of the Homeland Security Act of 
        2002 (6 U.S.C. 101).
            (9) United states.--The term ``United States'', when used 
        in a geographic sense, means any State of the United States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, any possession of the United States, 
        and any waters within the jurisdiction of the United States.

    TITLE I--DEPARTMENT OF HOMELAND SECURITY PORT SECURITY PROGRAMS

SEC. 101. UPDATES OF MARITIME OPERATIONS COORDINATION PLAN.

    (a) In General.--Not later than July 1, 2014, the Secretary shall 
submit to the appropriate congressional committees a maritime 
operations coordination plan for the coordination and cooperation of 
maritime operations undertaken by the agencies within the Department. 
Such plan shall update the maritime operations coordination plan 
released by the Department in July 2011, and shall address the 
following:
            (1) Coordination of planning, integration of maritime 
        operations, and development of joint situational awareness of 
        any office or agency of the Department with responsibility for 
        maritime homeland security missions.
            (2) Maintaining effective information sharing and, as 
        appropriate, intelligence integration, with Federal, State, and 
        local officials and the private sector, regarding threats to 
        maritime security.
            (3) Leveraging existing departmental coordination 
        mechanisms, including the Interagency Operational Centers, as 
        authorized under section 70107A of title 46, United States 
        Code, the U.S. Customs and Border Protection Air and Marine 
        Operations Center, the U.S. Customs and Border Protection 
        Operational Integration Center, and other regional maritime 
        operational command centers.
            (4) Cooperation and coordination with other agencies of the 
        Federal Government, and State and local agencies, in the 
        maritime environment, in support of maritime homeland security 
        missions.
            (5) Work conducted within the context of other national and 
        Department maritime security strategic guidance.
    (b) Additional Updates.--Not later than July 1, 2019, the 
Secretary, acting through the Department's Office of Operations 
Coordination and Planning, shall submit to the appropriate 
congressional committees an additional update to the maritime 
operations coordination plan.

SEC. 102. U.S. CUSTOMS AND BORDER PROTECTION OFFICE OF AIR AND MARINE 
              ASSET DEPLOYMENT.

    (a) In General.--Any new asset deployment by the U.S. Customs and 
Border Protection's Office of Air and Marine, following the date of the 
enactment of this Act, shall, to the greatest extent practicable, occur 
in accordance with a risk-based assessment that considers mission 
needs, performance results, threats, costs, and any other relevant 
factors identified by the Secretary. Specific factors to be included in 
such assessment shall include, at a minimum, the following:
            (1) Mission requirements that prioritize the operational 
        needs of field commanders to secure the United States border 
        and ports.
            (2) Other Department assets available to help address any 
        unmet border and port security mission needs.
            (3) Risk analysis showing positioning of the asset at issue 
        to respond to intelligence on emerging terrorist and other 
        threats.
            (4) Cost-benefit analysis showing the relative ability to 
        use the asset at issue in the most cost-effective way to reduce 
        risk and achieve mission success.
    (b) Considerations.--An assessment required under subsection (a) 
shall consider applicable Federal guidance, standards, and agency 
strategic and performance plans, including the following:
            (1) The most recent Departmental Quadrennial Homeland 
        Security Review, and any follow-up guidance related to such 
        Review.
            (2) The Department's Annual Performance Plans.
            (3) Department policy guiding use of integrated risk 
        management in resource allocation decisions.
            (4) Department and U.S. Customs and Border Protection 
        Strategic Plans and Resource Deployment Plans.
            (5) Applicable aviation guidance from the Department, 
        including the DHS Aviation Concept of Operations.
            (6) Other strategic and acquisition guidance promulgated by 
        the Federal Government as the Secretary determines appropriate.
    (c) Audit and Report.--The Inspector General of the Department 
shall biennially audit the deployment of new assets within U.S. Customs 
and Border Protection's Office of Air and Marine and submit to the 
appropriate congressional committees a report on the compliance of the 
Department with the requirements of this section.

SEC. 103. COST-BENEFIT ANALYSIS OF CO-LOCATING OPERATIONAL ENTITIES.

    (a) In General.--For all locations in which U.S. Customs and Border 
Protection's Office of Air and Marine operates that are within 25 miles 
of locations where any other Department agency also operates air and 
marine assets, the Secretary shall conduct a cost-benefit analysis to 
consider the potential cost of and savings derived from co-locating 
aviation and maritime operational assets of the different agencies of 
the Department. In analyzing the potential cost savings achieved by 
sharing aviation and maritime facilities, the study shall consider at a 
minimum the following factors:
            (1) Potential enhanced cooperation derived from Department 
        personnel being co-located.
            (2) Potential cost of, and savings derived through, shared 
        maintenance and logistics facilities and activities.
            (3) Joint use of base and facility infrastructure, such as 
        runways, hangars, control towers, operations centers, piers and 
        docks, boathouses, and fuel depots.
            (4) Short term moving costs required in order to co-locate 
        facilities.
            (5) Acquisition and infrastructure costs for enlarging 
        current facilities as needed.
    (b) Report.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to the appropriate 
congressional committees a report summarizing the results of the cost-
benefit analysis required under subsection (a) and any planned actions 
based upon such results.

SEC. 104. STUDY OF MARITIME SECURITY REDUNDANCIES.

    The Comptroller General of the United States shall by not later 
than 1 year after the date of enactment of this Act--
            (1) conduct a review of port security and maritime law 
        enforcement operations within the Department to identify 
        initiatives and programs with duplicative, overlapping, or 
        redundant goals and activities, including the cost of such 
        duplication; and
            (2) submit to the appropriate congressional committees a 
        report on the findings of the study, including--
                    (A) recommendations for consolidation, elimination, 
                or increased cooperation to reduce unnecessary 
                duplication found in the study; and
                    (B) an analysis of personnel, maintenance, and 
                operational costs related to unnecessarily duplicative, 
                overlapping, or redundant goals and activities found in 
                the study.

SEC. 105. ACQUISITION AND STRATEGIC SOURCING OF MARINE AND AVIATION 
              ASSETS.

    (a) In General.--Before initiating the acquisition of any new boat 
or aviation asset, the Secretary shall coordinate across the agencies 
of the Department, as appropriate, to--
            (1) identify common mission requirements before initiating 
        a new acquisition program; and
            (2) standardize, to the extent practicable, equipment 
        purchases, streamline the acquisition process, and conduct best 
        practices for strategic sourcing to improve control, reduce 
        cost, and facilitate oversight of asset purchases prior to 
        issuing a Request for Proposal.
    (b) Establishment of Aviation and Maritime Coordination 
Mechanism.--Not later than 180 days after the date of the enactment of 
this Act, the Secretary shall establish a coordinating mechanism for 
aviation and maritime issues, including issues related to the 
acquisition, administration, operations, maintenance, and joint 
management across the Department, in order to decrease procurement and 
operational costs and increase efficiencies.
    (c) Special Rule.--For the purposes of this section, a boat shall 
be considered any vessel less than 65 feet in length.

SEC. 106. PORT SECURITY GRANT PROGRAM MANAGEMENT.

    (a) Determination of Applications.--Section 70107(g) of title 46, 
United States Code, is amended--
            (1) by striking ``Any entity'' and inserting the following:
            ``(1) In general.--Any entity''; and
            (2) by adding at the end the following:
            ``(2) Determination.--Notwithstanding any other provision 
        of law, the Secretary shall, not later than 60 days after the 
        date on which an applicant submits a complete application for a 
        grant under this section, either approve or disapprove the 
        application.''.
    (b) Administration of Cost Share Determinations.--Section 
70107(c)(2) of title 46, United States Code, is amended--
            (1) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) Higher level of support required.--If the 
                Secretary or the Secretary's designee determines that a 
                proposed project merits support and cannot be 
                undertaken without a higher rate of Federal support, 
                then the Secretary or the Secretary's designee may 
                approve grants under this section for that project with 
                a matching requirement other than that specified in 
                paragraph (1).''; and
            (2) by inserting after subparagraph (C) the following:
                    ``(D) Cost share determinations.--Notwithstanding 
                any other provision of law, not later than 60 days 
                after the date on which an applicant submits a complete 
                application for a matching requirement waiver under 
                this paragraph the Secretary shall either approve or 
                disapprove the application.''.
    (c) Administration.--Section 70107(i) of title 46, United States 
Code, is amended by adding after paragraph (4) the following:
            ``(5) Release of funds.--To the maximum extent practicable, 
        the Secretary shall complete all necessary programmatic reviews 
        and release grant funds awarded under this section to the 
        appropriate entity not later than 180 days after the date on 
        which an applicant submits a complete application.
            ``(6) Performance period.--The Secretary shall utilize a 
        period of performance of not less than 3 years for expenditure 
        of grant funds awarded under this section.
            ``(7) Extension determinations.--Notwithstanding any other 
        provision of law, not later than 60 days after the date on 
        which an applicant submits a complete application for an 
        extension of the period of performance for a grant, the 
        Secretary shall either approve or disapprove the 
        application.''.

SEC. 107. PORT SECURITY GRANT FUNDING FOR MANDATED SECURITY PERSONNEL.

    Section 70107(b)(1) of title 46, United States Code, is amended by 
striking the period and inserting the following: ``, including overtime 
and backfill costs incurred in support of other expenditures authorized 
under this subsection, except that not more than 50 percent of amounts 
received by a grantee under this section for a fiscal year may be used 
under this paragraph.''.

SEC. 108. INTERAGENCY OPERATIONAL CENTERS FOR PORT SECURITY.

    (a) Participating Personnel.--Section 70107A(b)(1)(B) of title 46, 
United States Code, is amended--
            (1) by inserting ``, not less than part-time representation 
        from U. S. Customs and Border Protection and U.S. Immigration 
        and Customs Enforcement,''after ``the Coast Guard''; and
            (2) by striking ``the United States Customs and Border 
        Protection, the United States Immigration and Customs 
        Enforcement,''.
    (b) Assessment.--Not later than one year after the date of 
enactment of this Act the Secretary (as that term is used in that 
section) shall transmit to the appropriate congressional committees an 
assessment of--
            (1) interagency operational centers under such section and 
        the implementation of the amendments made by this section;
            (2) participation in such centers and by Federal agencies, 
        State and local law enforcement agencies, port security 
        agencies, and other public and private sector entities, 
        including joint daily operational coordination, training and 
        certifying of non-Federal law enforcement personnel, and joint 
        training exercises;
            (3) deployment of interoperable communications equipment 
        under subsection (e) of such section, including--
                    (A) an assessment of the cost-effectiveness and 
                utility of such equipment for Federal agencies, State 
                and local law enforcement agencies, port security 
                agencies, and other public and private sector entities;
                    (B) data showing which Federal agencies, State and 
                local law enforcement agencies, port security agencies, 
                and other public and private sector entities are 
                utilizing such equipment;
                    (C) an explanation of the process in place to 
                obtain and incorporate feedback from Federal agencies, 
                State and local law enforcement agencies, port security 
                agencies, and other public and private sector entities 
                that are utilizing such equipment in order to better 
                meet their needs; and
                    (D) an updated deployment schedule and life cycle 
                cost estimate for the deployment of such equipment; and
            (4) mission execution and mission support activities of 
        such centers, including daily coordination activities, 
        information sharing, intelligence integration, and operational 
        planning.

SEC. 109. REPORT ON DHS AVIATION ASSETS.

    (a) In General.--Not later than one year after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to the appropriate congressional committees a report that 
analyzes and compares the costs, capabilities, and missions of 
different aviation assets, including unmanned aerial vehicles, utilized 
by the Department to assess the relative costs of unmanned aerial 
vehicles as compared to manned aerial vehicles, and any increased 
operational benefits offered by unmanned aerial vehicles as compared to 
manned aviation assets.
    (b) Required Data.--The report required under subsection (a) shall 
include a detailed assessment of costs for operating each type of asset 
described in such report, including--
            (1) fuel costs;
            (2) crew and staffing costs;
            (3) maintenance costs;
            (4) communication and satellite bandwidth costs;
            (5) costs associated with the acquisition of each type of 
        such asset; and
            (6) any other relevant costs necessary to provide a 
        holistic analysis and to identify potential cost savings.

SEC. 110. SMALL VESSEL THREAT ANALYSIS.

    Not later than 1 year after the date of enactment of this Act, the 
Secretary shall submit to the appropriate congressional committees a 
report analyzing the threat of, vulnerability to, and consequence of an 
act of terrorism using a small vessel to attack United States vessels, 
ports, or maritime interests.

SEC. 111. U.S. CUSTOMS AND BORDER PROTECTION WORKFORCE PLAN.

    (a) In General.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to the appropriate 
congressional committees a plan for optimizing staffing levels for U.S. 
Customs and Border Protection personnel to carry out the mission of the 
Department, including optimal levels of U.S. Customs and Border 
Protection staffing required to conduct all border security functions.
    (b) Consideration of Prior Staffing Resources.--The staffing plan 
required under subsection (a) shall consider previous staffing models 
prepared by the Department and assessments of threat and 
vulnerabilities.

SEC. 112. INTEGRATED CROSS-BORDER MARITIME OPERATIONS BETWEEN THE 
              UNITED STATES AND CANADA.

    (a) In General.--Subtitle C of title IV of the Homeland Security 
Act of 2002 (6 U.S.C. 201 et seq.) is amended by adding at the end the 
following:

``SEC. 432. INTEGRATED CROSS-BORDER MARITIME OPERATIONS BETWEEN THE 
              UNITED STATES AND CANADA.

    ``(a) Authorization.--The Secretary is authorized to establish an 
Integrated Cross-Border Maritime Operations Program to coordinate 
maritime security operations between the United States and Canada (in 
this section referred to as the `Program').
    ``(b) Purpose.--The Secretary, acting through the Commandant of the 
Coast Guard, shall administer the Program in a manner that results in a 
cooperative approach between the United States and Canada to strengthen 
border security and detect, prevent, suppress, investigate, and respond 
to terrorism and violations of law related to border security.
    ``(c) Training.--The Secretary, acting through the Commandant of 
the Coast Guard, in consultation with the Secretary of State, may--
            ``(1) establish, as an element of the Program, a training 
        program to create designated maritime law enforcement officers;
            ``(2) conduct training jointly with Canada, including 
        training--
                    ``(A) on the detection and apprehension of 
                suspected terrorists and individuals attempting to 
                unlawfully cross or unlawfully use the international 
                maritime border between the United States and Canada, 
                to enhance border security;
                    ``(B) on the integration, analysis, and 
                dissemination of port security information between the 
                United States and Canada;
                    ``(C) on the respective policy, regulatory, and 
                legal considerations related to the Program;
                    ``(D) on the use of force and maritime security;
                    ``(E) in operational procedures and protection of 
                information and other sensitive information; and
                    ``(F) on preparedness and response to maritime 
                terrorist incidents.
    ``(d) Coordination.--The Secretary, acting through the Commandant 
of the Coast Guard, shall coordinate the Program with other similar 
border security and antiterrorism programs within the Department.
    ``(e) Memoranda of Agreement.--The Secretary may enter into any 
memorandum of agreement necessary to carry out the Program.
    ``(f) Authorization of Appropriations.--To carry out this section 
there is authorized to be appropriated to the Secretary $2,000,000 for 
each of fiscal years 2013 and 2014.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by adding at the end of the items relating to such 
subtitle the following new item:

``Sec. 432. Integrated cross-border maritime operations between the 
                            United States and Canada.''.

SEC. 113. TRAINING AND CERTIFICATION OF TRAINING FOR PORT SECURITY.

    (a) Use of Port Security Grant Funds.--Section 70107(b)(8) of title 
46, United States Code, is amended to read as follows:
            ``(8) The cost of training and certifying a law enforcement 
        officer employed by a law enforcement agency under section 
        70132 of this title.''.
    (b) Matching Requirement.--Section 70107(c)(2)(C) of such title is 
amended to read as follows:
                    ``(C) Training and certification.--There are no 
                matching requirements for grants under subsection (a) 
                to train and certify law enforcement personnel under 
                section 70132 of this title.''.
    (c) Credentialing Standards, Training, and Certification.--Section 
70132 of such title is amended as follows:
            (1) In the section heading, by striking ``for State and 
        local support for the enforcement of security zones for the 
        transportation of especially hazardous cargo'' and inserting 
        ``of maritime law enforcement personnel''.
            (2) By amending subsection (a) to read as follows:
    ``(a) Standards.--The Commandant of the Coast Guard shall establish 
standards for training, qualification, and certification of a law 
enforcement officer employed by a law enforcement agency, to conduct or 
execute, pursuant to a cooperative enforcement agreement, maritime 
security, maritime law enforcement, and maritime surge capacity 
activities.''.
            (3) In subsection (b)(1), by amending subparagraphs (A) and 
        (B) to read as follows:
                    ``(A) after notice and opportunity for public 
                comment, may develop and publish training curricula for 
                the standards established under subsection (a); and
                    ``(B) may--
                            ``(i) test and deliver training for which 
                        the curriculum is developed under subparagraph 
                        (A);
                            ``(ii) enter into an agreement under which 
                        any Federal, State, local, tribal, or private 
                        sector entity may test and deliver such 
                        training; and
                            ``(iii) accept the results of training 
                        conducted by any Federal, State, local, tribal, 
                        or private sector entity under such an 
                        agreement.''.
            (4) By striking subsection (b)(2) and inserting the 
        following:
            ``(2) Any training developed under paragraph (1) after the 
        date of enactment of the SMART Port Security Act shall be 
        developed in consultation with the Federal Law Enforcement 
        Training Center.''.
            (5) In subsection (b)(4)--
                    (A) by inserting after ``any moneys,'' the 
                following: ``other than an allocation made under the 
                Dingell-Johnson Sport Fish Restoration Act (16 U.S.C. 
                777 et seq.),''; and
                    (B) by striking ``training of personnel to assist 
                in the enforcement of security zones and limited access 
                areas'' and inserting ``training and certifying 
                personnel under this section''.
            (6) By striking subsection (c) and inserting the following:
    ``(c) Certification of Personnel.--The Commandant of the Coast 
Guard may issue a certificate to law enforcement officer employed by a 
law enforcement agency, who has successfully completed training that 
the Commandant has developed under this section.''.
            (7) By adding at the end the following:
    ``(d) Tactical Training for Law Enforcement Personnel.--The 
Commandant of the Coast Guard may make such training developed under 
this section available to law enforcement officers employed by a law 
enforcement agency, on either a reimbursable or a non-reimbursable 
basis, if the Commandant determines that--
            ``(1) a member of the Coast Guard is unable or unavailable 
        to undertake tactical training the authorization of which had 
        been previously approved, and no other member of the Coast 
        Guard is reasonably available to undertake such training;
            ``(2) the inability or unavailability of Coast Guard 
        personnel to undertake such training creates training capacity 
        within the training program; and
            ``(3) such training, if made available to such law 
        enforcement officers, would contribute to achievement of the 
        purposes of this section.''.
    (d) Conforming Amendment.--Chapter 701 of such title is amended--
            (1) by striking the heading for subchapter II and inserting 
        the following:

      ``Subchapter II--Port Security Training and Certification'';

                    
        and
            (2) in the table of sections at the beginning of the 
        chapter--
                    (A) by striking the item relating to the heading 
                for subchapter II and inserting the following:

      ``subchapter ii--port security training and certification'';

                and
                    (B) by striking the item relating to section 70132 
                and inserting the following:

``70132. Credentialing standards, training, and certification of 
                            maritime law enforcement personnel.''.
    (e) Technical Corrections.--Chapter 701 of such title is amended--
            (1) by moving sections 70122, 70123, 70124, and 70125 so as 
        to appear at the end of subchapter I of such chapter;
            (2) in the table of sections at the beginning of the 
        chapter, in the item relating to section 70107A, by adding at 
        the end a period; and
            (3) by striking the heading for section 70124 and inserting 
        the following:
``Sec. 70124. Regulations''.

SEC. 114. NORTHERN BORDER UNMANNED AERIAL VEHICLE PILOT PROJECT.

    (a) Research and Development.--The Secretary shall research and 
develop technologies to allow routine operation of medium-sized 
unmanned aerial vehicles, including autonomously piloted drones, within 
the national airspace for border and maritime security missions without 
any degradation of existing levels of security-related surveillance or 
of safety for all national airspace system users.
    (b) Pilot Project.--No later than 180 days after the date of 
enactment of this Act, the Secretary shall commence a pilot project in 
segregated airspace along the northern border to conduct experiments 
and collect data in order to accelerate the safe integration of medium-
sized unmanned aircraft systems into the national airspace system.

SEC. 115. RECOGNITION OF PORT SECURITY ASSESSMENTS CONDUCTED BY OTHER 
              ENTITIES.

    Section 70108 of title 46, United States Code, is amended by adding 
at the end the following new subsection:
    ``(f) Recognition of Assessment Conducted by Other Entities.--
            ``(1) Certification and treatment of assessments.--For the 
        purposes of this section and section 70109, the Secretary may 
        treat an assessment conducted by a foreign government or 
        international organization as an assessment by the Secretary 
        required by subsection (a), if the Secretary certifies that the 
        assessment was conducted in accordance with subsection (b).
            ``(2) Authorization to enter into agreements or 
        arrangements.--The Secretary may enter into an agreement or 
        arrangement with a foreign government or international 
        organization, under which--
                    ``(A) such government or organization may, on 
                behalf of the Secretary, conduct an assessment required 
                under subsection (a), or share with the Secretary 
                information pertaining to such assessments; and
                    ``(B) the Secretary may, on behalf of such foreign 
                government or organization, conduct an assessment 
                described in subsection (a), or share with such foreign 
                government or organization information pertaining to 
                such assessments.
            ``(3) Limitations.--Nothing in this subsection--
                    ``(A) requires the Secretary to recognize an 
                assessment that a foreign government or an 
                international organization conducts pursuant to this 
                subsection; or
                    ``(B) limits the discretion or ability of the 
                Secretary to conduct an assessment under this section.
            ``(4) Notification.--Not later than 30 days before entering 
        into an agreement or arrangement with a foreign government 
        under paragraph (2), the Secretary shall notify the appropriate 
        congressional committees of the proposed terms of such 
        agreement or arrangement.''.

SEC. 116. USE OF PORT SECURITY GRANT FUNDS FOR REPLACEMENT OF SECURITY 
              EQUIPMENT OR FACILITIES.

    Section 70107(b)(2) of title 46, United States Code, is amended by 
inserting ``(including replacement)'' after ``acquisition''.

                TITLE II--MARITIME SUPPLY CHAIN SECURITY

SEC. 201. STRATEGIC PLAN TO ENHANCE THE SECURITY OF THE INTERNATIONAL 
              SUPPLY CHAIN.

    Section 201 of the SAFE Port Act (6 U.S.C. 941) is amended--
            (1) by amending subsection (b) to read as follows:
    ``(b) Requirements.--The strategic plan required under subsection 
(a), and any updates to the strategic plan required under subsection 
(g), shall--
            ``(1) identify and address gaps and unnecessary 
        redundancies or overlaps in the roles, responsibilities, or 
        authorities of the agencies responsible for securing the supply 
        chain, including--
                    ``(A) any unnecessary redundancies or overlaps in 
                Federal transportation security credentialing programs; 
                and
                    ``(B) any unnecessary redundancies or overlaps in 
                Federal trusted shipper or trusted trader programs;
            ``(2) review ongoing efforts to align activities throughout 
        the Federal Government to--
                    ``(A) improve coordination among the agencies 
                referred to in paragraph (1);
                    ``(B) facilitate the efficient flow of legitimate 
                commerce;
                    ``(C) enhance the security of the international 
                supply chain; or
                    ``(D) address any gaps or overlaps described in 
                paragraph (1);
            ``(3) identify further regulatory or organizational changes 
        necessary to--
                    ``(A) improve coordination among the agencies 
                referred to in paragraph (1);
                    ``(B) facilitate the efficient flow of legitimate 
                commerce;
                    ``(C) enhance the security of the international 
                supply chain; or
                    ``(D) address any gaps or overlaps described in 
                paragraph (1);
            ``(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) recommend additional incentives for voluntary 
        measures taken by private sector entities to enhance supply 
        chain security, including additional incentives for such 
        entities participating in the Customs-Trade Partnership Against 
        Terrorism in accordance with sections 214, 215, and 216;
            ``(7) consider the impact of supply chain security 
        requirements on small- and medium- sized companies;
            ``(8) identify a framework for prudent and measured 
        response in the event of a transportation security incident 
        involving the international supply chain;
            ``(9) provide updated protocols for the expeditious 
        resumption of the flow of trade in accordance with section 202;
            ``(10) review and address implementation of lessons learned 
        from recent exercises conducted under sections 114 and 115, and 
        other international supply chain security, response, or 
        recovery exercises that the Department participates in, as 
        appropriate;
            ``(11) consider the linkages between supply chain security 
        and security programs within other systems of movement, 
        including travel security and terrorism finance programs;
            ``(12) be informed by technologies undergoing research, 
        development, testing, and evaluation by the Department; and
            ``(13) expand upon and relate to existing strategies and 
        plans for securing supply chains, including the National 
        Response Plan, the National Maritime Transportation Security 
        Plan, the National Strategy for Maritime Security, and the 
        eight supporting plans of such National Strategy for Maritime 
        Security, as required by Homeland Security Presidential 
        Directive 13.'';
            (2) in subsection (g)--
                    (A) in the heading for paragraph (2), by striking 
                ``Final'' and inserting ``Updated''; and
                    (B) by adding at the end the following new 
                paragraphs:
            ``(3) Final report.--Not later than two years after the 
        date on which the update of the strategic plan is submitted 
        under paragraph (2), the Secretary shall submit to the 
        appropriate congressional committees a report that contains a 
        further update of the strategic plan.
            ``(4) Implementation plan.--Not later than one year after 
        the date on which the final update of the strategic plan is 
        submitted under paragraph (3), the Secretary shall submit to 
        the appropriate congressional committees an implementation plan 
        for carrying out the strategic plan.''; and
            (3) by adding at the end the following new subsection:
    ``(h) Threat Assessment.--In developing the reports and 
implementation plan required under subsection (g), the Secretary shall 
take into account an assessment of the current threats to the global 
supply chain.''.

SEC. 202. CUSTOMS-TRADE PARTNERSHIP AGAINST TERRORISM.

    (a) Unannounced Inspections.--Section 217(a) of the SAFE Port Act 
(6 U.S.C. 967(a)) is amended--
            (1) by striking ``If at any time'' and inserting the 
        following:
            ``(1) Failure to meet requirements.--If at any time''; and
            (2) by inserting after paragraph (1), as redesignated, the 
        following new paragraph:
            ``(2) Unannounced inspections.--The Secretary, acting 
        through the Commissioner, may conduct an unannounced inspection 
        of a C-TPAT participant's security measures and supply chain 
        security practices if the Commissioner determines, based on 
        previously identified deficiencies in security measures and 
        supply chain security practices of the C-TPAT participant, that 
        there is a likelihood that such an inspection would assist in 
        confirming the security measures in place and further the 
        validation process.''.
    (b) Private Sector Information Sharing on Security and Terrorism 
Threats.--Subsection (d) of section 216 of the SAFE Port Act (6 U.S.C. 
966) is amended to read as follows:
    ``(d) Private Sector Information Sharing on Security and Terrorism 
Threats.--
            ``(1) In general.--The Secretary shall promote information 
        sharing, as appropriate, between and among the Department and 
        C-TPAT participants and other private entities regarding--
                    ``(A) potential vulnerabilities, attacks, and 
                exploitations of the international supply chain; and
                    ``(B) means and methods of preventing, responding 
                to, and mitigating consequences from the 
                vulnerabilities, attacks, and exploitations described 
                in subparagraph (A).
            ``(2) Contents.--The information sharing required under 
        paragraph (1) may include--
                    ``(A) the creation of classified and unclassified 
                means of accessing information that may be used by 
                appropriately cleared personnel and that will provide, 
                as appropriate, ongoing situational awareness of the 
                security of the international supply chain; and
                    ``(B) the creation of guidelines to establish a 
                mechanism by which owners and operators of 
                international supply chain infrastructure may report 
                actual or potential security breaches.''.

SEC. 203. RECOGNITION OF OTHER COUNTRIES' TRUSTED SHIPPER PROGRAMS.

    Section 218 of the SAFE Port Act (6 U.S.C. 968) is amended by 
adding at the end the following new subsection:
    ``(j) Recognition of Other Countries' Trusted Shipper Programs.--
Not later than 30 days before signing an arrangement between the United 
States and a foreign government providing for mutual recognition of 
supply chain security practices which might result in the utilization 
of benefits described in section 214, 215, or 216, the Secretary 
shall--
            ``(1) notify the appropriate congressional committees of 
        the proposed terms of such arrangement; and
            ``(2) determine, in consultation with the Commissioner, 
        that the foreign government's supply chain security program 
        provides comparable security as that provided by C-TPAT.''.

SEC. 204. PILOT PROGRAM FOR INCLUSION OF NON-ASSET BASED THIRD PARTY 
              LOGISTICS PROVIDERS IN THE CUSTOMS-TRADE PARTNERSHIP 
              AGAINST TERRORISM.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall develop a pilot program to 
determine whether allowing non-asset based third party logistics 
providers that arrange international transportation of freight to 
participate in the Customs-Trade Partnership Against Terrorism program, 
as described in section 211 of the SAFE Port Act (6 U.S.C. 961), would 
enhance port security, combat terrorism, prevent supply chain security 
breaches, or meet the goals of the Customs-Trade Partnership Against 
Terrorism established pursuant to section 211 of the SAFE Port Act (6 
U.S.C. 961).
    (b) Requirements.--
            (1) Voluntary participation.--Participation by non-asset 
        based third party logistics providers that arrange 
        international transportation of freight taking part in the 
        pilot program shall be voluntary.
            (2) Minimum number.--The Secretary shall ensure that not 
        fewer than five non-asset based third party logistics providers 
        that arrange international transportation of freight take part 
        in the pilot program.
            (3) Duration.--The pilot program shall be conducted for a 
        minimum duration of one year.
    (c) Report.--Not later than 180 days after the conclusion of the 
pilot program, the Secretary shall submit to the appropriate 
congressional committees a report on the findings and any 
recommendations of the pilot program concerning the participation in 
the Customs-Trade Partnership Against Terrorism of non-asset based 
third party logistics providers that arrange international 
transportation of freight to combat terrorism and prevent supply chain 
security breaches.

SEC. 205. TRANSPORTATION WORKER IDENTIFICATION CREDENTIAL PROCESS 
              REFORM.

    (a) Sense of Congress.--To avoid further imposing unnecessary and 
costly regulatory burdens on United States workers and businesses, it 
is the sense of Congress that it is urgent that the Transportation 
Worker Identification Credential (in this section referred to as the 
``TWIC'') application process be reformed by not later than the end of 
2012, when hundreds of thousands of current TWIC holders will begin to 
face the requirement to renew their TWICs.
    (b) TWIC Application Reform.--Not later than 270 days after the 
date of the enactment of this Act, the Secretary shall reform the 
process for the enrollment, activation, issuance, and renewal of a TWIC 
to require, in total, not more than one in-person visit to a designated 
enrollment center except in cases in which there are extenuating 
circumstances, as determined by the Secretary, requiring more than one 
such in-person visit.

SEC. 206. EXPIRATION OF CERTAIN TRANSPORTATION WORKER IDENTIFICATION 
              CREDENTIALS.

    (a) In General.--A valid Transportation Worker Identification 
Credential required under part 101.514 of title 33, Code of Federal 
Regulations, that was issued before the date of enactment of this Act 
shall not expire before the earlier of--
            (1) the deadline for full implementation of a final rule 
        issued by the Secretary for electronic readers designed to work 
        with Transportation Worker Identification Credentials as an 
        access control and security measure issued pursuant to the 
        advanced notice of proposed rulemaking published March 27, 2009 
        (74 Fed. Reg. 58), as established by the final rule; or
            (2) June 30, 2014.
    (b) Revocation Authority Not Affected.--This section shall not be 
construed to affect the authority of the Secretary to revoke a 
Transportation Worker Identification Credential--
            (1) based on information that the holder is not qualified 
        to hold such credential; or
            (2) if the credential is lost, damaged, or stolen.

SEC. 207. SECURING THE TRANSPORTATION WORKER IDENTIFICATION CREDENTIAL 
              AGAINST USE BY UNAUTHORIZED ALIENS.

    (a) Process.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall establish a process 
        to ensure, to the maximum extent practicable, that an 
        individual who is not lawfully present in the United States 
        cannot obtain or continue to use a Transportation Worker 
        Identification Credential (in this section referred to as the 
        ``TWIC'').
            (2) Components.--In establishing the process under 
        subsection (a), the Secretary shall--
                    (A) publish a list of documents that will identify 
                non-United States citizen TWIC applicants and verify 
                their immigration statuses by requiring each such 
                applicants to produce a document or documents that 
                demonstrate--
                            (i) identity; and
                            (ii) proof of lawful presence in the United 
                        States; and
                    (B) establish training requirements to ensure that 
                trusted agents at TWIC enrollment centers receive 
                training to identify fraudulent documents.
    (b) Expiration of TWICs.--A TWIC expires on the date of its 
expiration, or in the date on which the individual to whom such a TWIC 
is issued is no longer lawfully present in the United States, whichever 
is earlier.

SEC. 208. REPORT ON FEDERAL TRANSPORTATION SECURITY CREDENTIALING 
              PROGRAMS.

    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 that identifies unnecessary redundancies or 
overlaps in Federal transportation security credentialing programs, 
including recommendations to reduce or eliminate such redundancies or 
overlaps.

            Passed the House of Representatives June 28, 2012.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.
```