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[House Report 115-610]
[From the U.S. Government Publishing Office]

115th Congress }                                          { REPORT
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                          { 115-610

======================================================================
 
         ENHANCING SUSPICIOUS ACTIVITY REPORTING INITIATIVE ACT

                                _______
                                

 March 19, 2018.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. McCaul, from the Committee on Homeland Security, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 5094]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security, to whom was referred 
the bill (H.R. 5094) to direct the Secretary of Homeland 
Security to improve suspicious activity reporting to prevent 
acts of terrorism, and for other purposes, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     3
Background and Need for Legislation..............................     3
Committee Consideration..........................................     5
Committee Votes..................................................     5
Committee Oversight Findings.....................................     5
New Budget Authority, Entitlement Authority, and Tax Expenditures     5
Congressional Budget Office Estimate.............................     6
Statement of General Performance Goals and Objectives............     6
Duplicative Federal Programs.....................................     7
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     7
Federal Mandates Statement.......................................     7
Preemption Clarification.........................................     7
Disclosure of Directed Rule Makings..............................     7
Advisory Committee Statement.....................................     7
Applicability to Legislative Branch..............................     7
Section-by-Section Analysis of the Legislation...................     7
Changes in Existing Law Made by the Bill, as Reported............     9
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Enhancing Suspicious Activity 
Reporting Initiative Act''.

SEC. 2. ENHANCING DEPARTMENT OF HOMELAND SECURITY SUSPICIOUS ACTIVITY 
                    REPORTING OPERATIONS.

  (a) Strategy Required.--Not later than one year after the date of the 
enactment of this Act, the Secretary of Homeland Security, in 
consultation with other appropriate Federal officials, shall develop a 
strategy to improve the operations and activities of the Department of 
Homeland Security related to training, outreach, and information 
sharing for suspicious activity reporting to prevent acts of terrorism.
  (b) Contents of Strategy.--The strategy required under subsection (a) 
shall include the following:
          (1) A description and examples of the types of information 
        that would meet the definition of critical information for the 
        purpose of suspicious activity reporting as well as 
        information, including information associated with racial, 
        religious or national origin, that would not meet the 
        definition of critical information.
          (2) Training for appropriate personnel of State and major 
        urban area fusion centers, emergency response providers, and, 
        as appropriate, the private sector on--
                  (A) methods for identifying, analyzing, and 
                disseminating critical information, including the 
                indicators of terrorism;
                  (B) methods to protect privacy and civil liberties, 
                including preventing racial, religious, or national 
                origin discrimination; and
                  (C) response protocols for submitting suspicious 
                activity reports.
          (3) Methods to improve outreach to appropriate State and 
        major urban area fusion centers, emergency response providers, 
        and the private sector related to suspicious activity reporting 
        to prevent acts of terrorism.
          (4) A plan to ensure that critical information is shared in a 
        timely manner with State and major urban area fusion centers, 
        emergency response providers, and the private sector, as 
        appropriate, including nationwide trend analysis and other 
        information related to terrorist threats.
          (5) Methods to measure the effectiveness of the activities 
        conducted under the strategy with respect to improving the 
        operations and activities of the Department related to 
        training, outreach, and information sharing to prevent acts of 
        terrorism that have been validated through peer-reviewed 
        empirical studies to the extent practicable.
  (c) Working Group Recommendations.--In developing the strategy 
required under subsection (a) the Secretary shall take into 
consideration the recommendations of the working group established 
under section 3.
  (d) Congressional Notification.--Not less than 30 days before the 
release of the strategy required pursuant to subsection (a), the 
Secretary shall provide to the Committee on Homeland Security of the 
House of Representatives and the Committee on Homeland Security and 
Governmental Affairs of the Senate a notification of the release of the 
strategy and a copy of the strategy. Such notification shall include 
the recommendations provided by the working group established under 
section 3 and how such recommendations were incorporated into the 
strategy.

SEC. 3. SUSPICIOUS ACTIVITY REPORTING WORKING GROUP.

  (a) Establishment.--
          (1) In general.--The Secretary of Homeland Security shall 
        establish a working group on suspicious activity reporting.
          (2) Department liaisons.--The Secretary shall appoint as 
        liaisons to the working group--
                  (A) the Chief Privacy Officer of the Department of 
                Homeland Security;
                  (B) the Officer for Civil Rights and Civil Liberties 
                of the Department; and
                  (C) such other officials of the Department as the 
                Secretary determines appropriate.
  (b) Responsibilities.--The working group established under subsection 
(a) shall carry out the following responsibilities:
          (1) Provide advice to the Secretary regarding improvements to 
        the operations and activities related to suspicious activity 
        reporting to prevent acts of terrorism.
          (2) At the request of the Secretary, for purposes of section 
        2(c), develop recommendations to improve suspicious activity 
        reporting to prevent acts of terrorism with respect to--
                  (A) outreach to relevant stakeholders;
                  (B) information sharing;
                  (C) protecting personally identifiable information;
                  (D) protecting the privacy, civil rights, and civil 
                liberties of individuals who report suspicious activity 
                and individuals who are the subjects of such reports;
                  (E) preventing racial, religious, or national origin 
                discrimination;
                  (F) training for emergency response providers and the 
                private sector; and
                  (G) other matters, as determined by the Secretary.
  (c) Working Group Membership.--Not later than 180 days after the date 
of the enactment of this Act, the Secretary shall seek the voluntary 
participation of not more than 20 individuals representing at least 12 
diverse regions of the United States to serve as members of the working 
group. Members of the working group shall serve without pay. The 
Secretary shall seek to ensure that the working group includes members 
who are representatives from each of the following:
          (1) State and major urban area fusion centers.
          (2) State, local, tribal and territorial law enforcement 
        agencies.
          (3) Firefighters.
          (4) Emergency medical services.
          (5) Private sector security professionals.
          (6) Nongovernmental privacy and civil liberty organizations.
          (7) Any other group the Secretary determines appropriate.
  (d) Congressional Briefing.--Upon request, the Secretary shall 
provide to the Committee on Homeland Security of the House of 
Representatives and the Committee on Homeland Security and Governmental 
Affairs of the Senate a briefing on the operations and activities of 
the Department of Homeland Security related to training, outreach, and 
information sharing for suspicious activity reporting to prevent acts 
of terrorism, including copies of materials developed under this 
section.
  (e) Termination.--The working group under this section shall 
terminate on the date that is two years after the date of the enactment 
of this Act, except that the Secretary may extend such working group if 
the Secretary determines necessary.
  (f) Nonapplicability of FACA.--The Federal Advisory Committee Act (5 
U.S.C. App.) shall not apply to the working group established under 
this section.

                          Purpose and Summary

    H.R. 5094, the Enhancing Suspicious Activity Reporting 
Initiative Act, directs the Secretary of Homeland Security to 
develop a strategy for improving the Department of Homeland 
Security operations and activities related to training, 
outreach, and information sharing for suspicious activity 
reporting to prevent acts of terrorism, as well as to establish 
a suspicious activity reporting working group to develop 
recommendations for improvement that will be utilized to 
develop this strategy.

                  Background and Need for Legislation

    The Committee on Homeland Security has conducted 
significant oversight over the purpose and programs related to 
suspicious activity reporting and efforts to engage state and 
local agencies, as well as the private sector and individual 
citizens, to be alert for possible indicators of terrorism and 
other threats to public safety. The Committee Majority staff 
has released multiple reports highlighting the importance of 
suspicious activity reporting (SARs) and the See Something Say 
Something campaign and held an oversight hearing in September 
2017.
    In 2015, the Committee on Homeland Security of the House of 
Representatives released a follow-up Majority staff report 
entitled ``Preventing Another Boston Marathon Bombing: 
Reviewing the Lessons Learned from the 2013 Terror Attack.'' 
This report identified seven recommendations to help strengthen 
the Federal Government's counterterrorism efforts.\1\ The sixth 
recommendation emphasized that efforts to educate the public on 
terrorist threats, efforts that include the Nationwide 
Suspicious Activity Reporting (SAR) Initiative (NSI), need to 
be refined and evaluated.\2\ As the report noted, the public 
plays a crucial role in identifying and reporting potential 
terrorist activity to law enforcement, and therefore law 
enforcement must work with community groups and the public to 
gain their trust. As articulated by current Boston Police 
Commissioner William B. Evans in testimony provided before the 
Committee on Homeland Security of the House of Representatives, 
``only through continued and persistent engagement with our 
community can police build trust, leading to increased 
cooperation from the community.''\3\
---------------------------------------------------------------------------
    \1\Preventing Another Boston Marathon Bombing: Reviewing Lessons 
Learned from the 2013 Terror Attack, The House Homeland Security 
Committee, April 2015, at 13. https://homeland.house.gov/files/
documents/041415-Boston-Marathon-Bombing-Report.pdf
    \2\Id at 13-16.
    \3\United States House of Representatives Committee on Homeland 
Security, Sixteen Years After 9/11: Assessing Suspicious Activity 
Reporting Efforts, September 13, 2017, 115th Congress, testimony 
provided by Boston Police Commissioner William B. Evans.
---------------------------------------------------------------------------
    In December 2016, the Committee released a Majority staff 
report on the Department of Homeland Security Intelligence 
Enterprise (DHS IE), which included a review of the 
Department's role in the Nationwide SARS Initiative (NSI). The 
report recommended that DHS advocate on behalf of fusion 
centers to ensure they have direct access to federal databases 
with SAR information.\4\
---------------------------------------------------------------------------
    \4\Reviewing the Department of Homeland Security's Intelligence 
Enterprise, The House Homeland Security Committee, December 2016, at 
45. https://homeland.house.gov/wp-content/uploads/2017/01/reviewing-
dhs-intelligence-enterprise-report.pdf
---------------------------------------------------------------------------
    Nearly a year later, the Committee released a Majority 
staff report on the Department's support to the National 
Network of Fusion Centers.\5\ Two of the 24 recommendations in 
the report directly related to NSI and SARs. The Committee 
recommended that conduct an assessment of NSI and provide 
additional training and assistance to address program gaps. 
Additionally, DHS and other agencies should implement 
procedures to provide feedback to fusion centers on the 
investigative value or SARs.\6\
---------------------------------------------------------------------------
    \5\Advancing the Homeland Security Information Sharing Environment: 
A Review of the National Network of Fusion Centers, House Homeland 
Security Committee, November 2017. https://homeland.house.gov/wp-
content/uploads/2017/11/Committee-on-Homeland-Security-Fusion-Center-
Report.pdf
    \6\Id at 6.
---------------------------------------------------------------------------
    Most recently, on September 13, 2017, the Subcommittee on 
Counterterrorism and Intelligence held a hearing entitled, 
``Sixteen Years After 9/11: Assessing Suspicious Activity 
Reporting Efforts.'' The Committee Members received testimony 
from DHS, which does not administer the nation-wide SAR 
Initiative, but works as a partner with FBI, which is the lead 
agency in charge, as well as State and local law enforcement on 
the NSI process and value of promoting awareness on suspicious 
activity. During the hearing, a representative from DHS 
testified that since 2010, more than 100,000 SARs have been 
submitted, of which 1,200 initiated a new FBI investigation or 
enhanced an existing one.\7\ Additionally, over 1,000 SARs 
during the same time period led to terrorism watchlist 
enhancements.\8\ Witnesses also testified regarding how the 
program has matured and initiatives for further development, 
including greater private sector outreach.\9\
---------------------------------------------------------------------------
    \7\Remarks of Mr. Robin Taylor, Acting Deputy Secretary for 
Intelligence Operations in the Office of Intelligence and Analysis at 
the Department of Homeland Security, during a Subcommittee on 
Counterterrorism and Intelligence hearing, ``Sixteen Years After 9/11: 
Assessing Suspicious Activity Reporting,'' September 13, 2017. https://
homeland.house.gov/hearing/sixteen-years-after-911-assessing-
suspicious-activity-reporting-efforts/
    \8\Id.
    \9\Id.
---------------------------------------------------------------------------
    H.R. 5094 adds new responsibilities to the Secretary of 
Homeland Security to enable the Department to continue to 
foster community participation and engagement by strengthening 
existing training and outreach programs. Under this new 
legislation, the Secretary is required to develop a strategy 
designed to improve the operations and activities related to 
suspicious activity reporting as they pertain to training, 
outreach, and information sharing with key partners, including 
appropriate law enforcement officers, the State and major urban 
area fusion centers, emergency response providers, and the 
private sector.
    The bill also empowers the Secretary to establish a 
stakeholder working group to develop recommendations to improve 
SARs activities. The bill includes important privacy and civil 
liberty safeguards. Additionally, the reporting requirement 
ensures that the Secretary will provide this strategy and an 
evaluation of its effectiveness, as well as a description of 
the recommendations provided by the working group and how these 
recommendations were incorporated into the strategy, with the 
Congress.

                        Committee Consideration

    The Committee met on March 7, 2018, to consider H.R. 5094, 
and ordered the measure to be reported to the House with a 
favorable recommendation, as amended, by unanimous consent. The 
Committee took the following actions:
    The following amendment was offered:

 An amendment offered by Mr. King of New York (#1); was AGREED 
TO by unanimous consent.

                            Committee Votes

    Clause 3(b) of Rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto.
    No recorded votes were requested during consideration of 
H.R. 5094.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of Rule XIII of the Rules of the 
House of Representatives, the Committee has held oversight 
hearings and made findings that are reflected in this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of Rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
5094, the Enhancing Suspicious Activity Reporting Initiative 
Act, would result in no new or increased budget authority, 
entitlement authority, or tax expenditures or revenues.

                  Congressional Budget Office Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 14, 2018.
Hon. Michael McCaul,
Chairman, Committee on Homeland Security,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5094, the 
Enhancing Suspicious Activity Reporting Initiative Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 5094--Enhancing Suspicious Activity Reporting Initiative Act

    H.R. 5094 would require the Department of Homeland Security 
(DHS) to develop a strategy to improve its handling of tips or 
information relating to possible terrorist activity. The bill 
also would direct DHS to form a working group (including 
participants from nongovernmental entities) to further enhance 
its response to such reports. Because the department is 
currently carrying out activities similar to those required by 
the bill, CBO estimates that implementing H.R. 5094 would not 
have a significant effect on spending by DHS.
    Enacting the bill would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    CBO estimates that enacting H.R. 5094 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2028.
    H.R. 5094 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act.
    The CBO staff contact for this estimate is Mark Grabowicz. 
The estimate was approved by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of Rule XIII of the Rules of the 
House of Representatives, H.R. 5094 contains the following 
general performance goals and objectives, including outcome 
related goals and objectives authorized.
    The bill also establishes a working group to develop 
recommendations for improvements to suspicious activity 
reporting that will be used to develop such strategy.

                      Duplicative Federal Programs

    Pursuant to clause 3(c) of Rule XIII, the Committee finds 
that H.R. 5094 does not contain any provision that establishes 
or reauthorizes a program known to be duplicative of another 
Federal program.

   Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    In compliance with Rule XXI of the Rules of the House of 
Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the Rule 
XXI.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                        Preemption Clarification

    In compliance with section 423 of the Congressional Budget 
Act of 1974, requiring the report of any Committee on a bill or 
joint resolution to include a statement on the extent to which 
the bill or joint resolution is intended to preempt State, 
local, or Tribal law, the Committee finds that H.R. 5094 does 
not preempt any State, local, or Tribal law.

                  Disclosure of Directed Rule Makings

    The Committee estimates that H.R. 5094 would require no 
directed rule makings.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

Section 1.   Short Title.

    This section provides that this bill may be cited as the 
``Enhancing Suspicious Activity Reporting Initiative Act''.

Sec. 2.   Enhancing Department of Homeland Security Suspicious Activity 
        Reporting Operations.

    This section requires the Secretary of Homeland Security to 
develop a strategy within one year to improve the operations 
and activities related to training, outreach, and information 
sharing for suspicious activity reporting to prevent acts of 
terrorism. This strategy shall include plans for: (1) providing 
training for State and major urban area fusion centers, 
emergency response providers, and the private sector on 
identifying, analyzing, and disseminating critical information, 
including the indicators of terrorism, as well as training on 
privacy and civil liberty protections; (2) conducting outreach 
to appropriate State and major urban area fusion centers, 
emergency response providers, and the private sector; (3) 
ensuring that critical information is shared in a timely manner 
with State and major urban area fusion centers, emergency 
response providers, and the private sector, as appropriate, 
including nationwide trend analysis and other information 
related to terrorist threats; and (4) measuring the 
effectiveness of the activities conducted under the strategy.
    In developing this strategy, the Secretary shall take into 
consideration the recommendations of the working group 
established under Section 3 of this Act. Not later than one 
year after the date of the enactment, the Secretary shall 
submit to the Committee on Homeland Security of the House of 
Representatives and the Committee on Homeland Security and 
Governmental Affairs of the Senate a report on this strategy.
    The Committee acknowledges that while the Department does 
not administer the National SARs Initiative, it is an important 
facilitator for representatives of the Nation Network of Fusion 
Centers and others to report suspicious activity to the FBI. 
Importantly, the bill requires the Secretary to provide 
guidance and examples on what types of information would be and 
would not be considered critical information.

Sec. 3.   Suspicious Activity Reporting Working Group.

    This section requires the Secretary to establish a 
suspicious activity reporting working group. This working group 
will be responsible for providing advice to the Secretary 
regarding the suspicious activity reporting operations and 
developing recommendations for outreach, information sharing, 
protecting personally identifiable information, protecting 
privacy and civil rights, training for emergency response 
providers and the private sector; and other matters, as 
determined by the Secretary to improve suspicious activity 
reporting to prevent acts of terrorism.
    This section also requires the Secretary to appoint 
liaisons from the Department to the Working Group, including 
the Chief Privacy Officer, the Officer for Civil Rights and 
Civil Liberties and other appropriate individuals.
    The Secretary shall seek the voluntary participation of not 
more than 20 individuals representing at least 12 diverse 
regions of the United States to serve as members of the working 
group. The Secretary shall seek representatives from each of 
the following: (1) State and major urban area fusion centers; 
(2) State, local, tribal and territorial law enforcement 
agencies; (3) Firefighters; (4) Emergency medical services; (5) 
Private sector security professionals; and (6) Any other group 
the Secretary determines appropriate. Upon request, the 
Secretary shall provide a briefing to the Committee on Homeland 
Security of the House of Representatives and the Committee on 
Homeland Security and Governmental Affairs of the Senate on the 
information and recommendations provided by the working group. 
The working group shall terminate after two years unless the 
Secretary extends the term. The Federal Advisory Committee Act 
does not apply to the working group.

         Changes in Existing Law Made by the Bill, as Reported

    As reported, H.R. 5094 makes no changes to existing law.

                                  [all]
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