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[House Report 115-605]
[From the U.S. Government Publishing Office]

115th Congress    }                                    {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                    {      115-605

======================================================================

 
               AIR CARGO SECURITY IMPROVEMENT ACT OF 2018

                                _______
                                

 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. 4176]

    The Committee on Homeland Security, to whom was referred 
the bill (H.R. 4176) to strengthen air cargo security, 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..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Oversight Findings.....................................     3
New Budget Authority, Entitlement Authority, and Tax Expenditures     3
Congressional Budget Office Estimate.............................     4
Statement of General Performance Goals and Objectives............     4
Duplicative Federal Programs.....................................     4
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     4
Federal Mandates Statement.......................................     4
Preemption Clarification.........................................     4
Disclosure of Directed Rule Makings..............................     5
Advisory Committee Statement.....................................     5
Applicability to Legislative Branch..............................     5
Section-by-Section Analysis of the Legislation...................     5
Changes in Existing Law Made by the Bill, as Reported............     6

    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 ``Strengthening Aviation Security Act of 
2017''.

SEC. 2. USE OF RISK-BASED STRATEGIES BY FEDERAL AIR MARSHAL SERVICE.

  (a) In General.--Subsection (a) of section 44917 of title 49, United 
States Code, is amended--
          (1) in paragraph (7), by striking ``and'' after the semicolon 
        at the end;
          (2) in paragraph (8), by striking the period at the end and 
        inserting a semicolon; and
          (3) by adding at the end the following new paragraphs:
          ``(9) shall require the Federal Air Marshal Service to 
        utilize a risk-based strategy when allocating resources between 
        international and domestic flight coverage, including when 
        initially setting its annual target numbers of average daily 
        international and domestic flights to cover;
          ``(10) shall require the Federal Air Marshal Service to 
        utilize a risk-based strategy to support domestic allocation 
        decisions;
          ``(11) shall require the Federal Air Marshal Service to 
        utilize a risk-based strategy to support international 
        allocation decisions; and
          ``(12) shall ensure that the seating arrangements of Federal 
        air marshals on aircraft are determined in a manner that is 
        risk-based and most capable of responding to current threats to 
        aviation security.''.
  (b) Report.--Not later than 270 days after the date of the enactment 
of this Act, the Administrator of the Transportation Security 
Administration shall submit to the Committee on Homeland Security of 
the House of Representatives and the Committee on Homeland Security and 
Governmental Affairs and the Committee on Commerce, Science, and 
Transportation of the Senate a report that describes the compliance of 
the Federal Air Marshal Service with the requirements specified in 
paragraphs (9) through (12) of subsection (a) of section 44917 of title 
49, United States Code, as added by this Act, and the documented 
methodology used by the Federal Air Marshal Service to conduct risk 
assessments in accordance with such paragraphs.
  (c) Effective Date.--The Transportation Security Administration shall 
begin carrying out the requirements specified in paragraphs (9) through 
(12) of subsection (a) of section 44917, United States Code, added by 
this Act, by not later than the date that is 180 days after the date of 
the enactment of this Act.

                          Purpose and Summary

    The purpose of H.R. 4176, the Air Cargo Security 
Improvement Act of 2018, is to prioritize and reform air cargo 
security at the Transportation Security Administration (TSA) by 
establishing the air cargo security division within the TSA to 
carry out all air cargo security policy and stakeholder 
engagement. Additionally, this bill requires the TSA 
Administrator to conduct a feasibility study--and subsequent 
pilot program--on expanding the use of computed tomography (CT) 
and other emerging technology for air cargo screening. Last, 
the bill requires a review of the Certified Cargo Screening 
Program and the Known Shipper Program.

                  Background and Need for Legislation

    The Implementing Recommendations of the 9/11 Commission Act 
of 2007 (Pub. L. 110-53) mandated TSA to screen and inspect 100 
percent of air cargo transported on passenger aircraft. 
However, the Act did not require TSA to screen 100 percent of 
air cargo on all-cargo aircraft, nor does it require TSA to 
personally screen all pieces of cargo. Therefore, TSA takes a 
risk-based approach to the screening of all-cargo flights and 
leverages trusted partners in the private sector to screen 
cargo on some passenger flights--via the Certified Cargo 
Screening Program and the Known Shipper Program.
    Even though the majority of TSA's resources focuses on 
screening travelers and securing passenger aircraft, air cargo 
security remains a major concern. The failed 2010 Yemen plot to 
detonate explosive devices in cargo packages--after transport 
on both cargo and passenger aircraft--highlights the threat 
posed to this sector.\1\ For years, aviation stakeholders have 
highlighted air cargo as an area of vulnerability that often 
gets neglected by TSA. Indeed, recent aviation threats indicate 
the need for a renewed focus on ensuring the security of air 
cargo. Therefore, throughout the 115th Congress, this Committee 
has sought to elevate air cargo security within TSA and address 
any necessary reforms, as evidenced by this bill and the 
Committee's House-passed H.R. 2825, the Department of Homeland 
Security Authorization Act.
---------------------------------------------------------------------------
    \1\  Leyne, Jon. ``Printer cartridge bomb plot planning revealed,'' 
BBC. November 22, 2010. http://www.bbc.com/news/world-middle-east-
11812874.
---------------------------------------------------------------------------

                                Hearings

    The Committee did not hold any legislative hearings on H.R. 
1309 in the 115th Congress. However, this legislation was 
informed by a Subcommittee on Transportation and Protective 
Security Subcommittee hearing on July 25, 2017 entitled 
``Securing Air Cargo: Industry Perspectives.'' The Subcommittee 
received testimony from Mr. Stephen A. Alterman, President, 
Cargo Airline Association; Mr. Brandon Fried, Executive 
Director, Airforwarders Association; Mr. Michael C. Mullen, 
Executive Director, Express Association of America; and Mr. 
Bart Elias, Specialist in Aviation Policy, Resources, Science 
and Industry Division, Congressional Research Service, Library 
of Congress.

                        Committee Consideration

    The Committee met on March 7, 2018, to consider H.R. 4176, 
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 in the Nature of a Substitute offered by Mr. 
Thompson of Mississippi (#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. 4176.

                      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. 
4176, the Air Cargo Security Improvement Act of 2017, would 
result in no new or increased budget authority, entitlement 
authority, or tax expenditures or revenues.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of Rule XIII of the Rules of the 
House of Representatives, a cost estimate provided by the 
Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974 was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

         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. 4176 contains the following 
general performance goals and objectives, including outcome 
related goals and objectives authorized.
    This legislation seeks to prioritize and reform air cargo 
security at TSA by: establishing the air cargo security 
division, requiring a feasibility study and pilot program on 
the use of certain security technologies for air cargo 
screening, and reviewing the effectiveness of the Certified 
Cargo Screening Program and the Known Shipper Program.

                      Duplicative Federal Programs

    Pursuant to clause 3(c) of Rule XIII, the Committee finds 
that H.R. 4176 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

    An estimate of Federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

                        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. 4176 does 
not preempt any State, local, or Tribal law.

                  Disclosure of Directed Rule Makings

    The Committee estimates that H.R. 4176 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 
``Air Cargo Security Improvement Act of 2017''.

Sec. 2.   Establishment of Air Cargo Security Division.

    This section establishes an air cargo security division 
within TSA that shall carry out all policy and engagement with 
stakeholders. This division must be headed by an individual in 
the executive service of TSA with at least four full-time 
equivalents, which will ensure that TSA prioritizes air cargo 
security. Additionally, the Committee does not intend for the 
establishment of this division to increase TSA's budget or 
operating costs, therefore the division must be comprised of 
existing TSA staff.
    The Committee intends for the creation of an air cargo 
security division to provide stakeholders with a central entry-
point for engaging TSA on matters related to air cargo security 
and to align air cargo security responsibilities within TSA's 
organizational structure in a manner similar to existing 
aviation and surface transportation security divisions.

Sec. 3.   Feasibility Study and Pilot Program for Emerging 
        Technologies.

    This section requires TSA to conduct a feasibility study on 
expanding the use of computed tomography technology for 
screening air cargo on passenger aircraft. Additionally, it 
identifies that the study should consider: opportunities to 
leverage CT systems used for screening passengers and baggage, 
costs and benefits of using CT for air cargo screening, an 
analysis of emerging CT systems that may have potential to 
enhance air cargo screening, and an analysis of other emerging 
screening technologies that may enhance air cargo screening.
    This section also requires TSA to initiate a 2-year pilot 
program-and subsequent updates to Congress-following the 
submission of the feasibility study for the purpose of using 
the new or emerging screening technology to enhance air cargo 
security screening.

Sec. 4.   Air Cargo Regulation Review.

    This section requires TSA to submit a report regarding 
efforts to improve the Certified Cargo Screening Program 
established in 2009. The report shall review the Program's 
effectiveness at addressing threats to air cargo as well as the 
Program's vulnerabilities and effectiveness of information 
sharing with stakeholders. The report shall also include 
information on actions taken in response to the review 
findings.

Sec. 5.   Comptroller General Review.

    This section requires the Comptroller General to: (1) 
review DHS's pre-screening procedures for air cargo; (2) review 
TSA's pilot program pursuant to section 3; (3) assess the 
effectiveness of DHS's risk-based strategy for examining air 
cargo; and (4) review DHS's information sharing procedures with 
stakeholders regarding air cargo related threats.

Sec. 6.   Known Shipper Program Review.

    This section requires the Air Cargo Subcommittee of the 
Aviation Security Advisory Committee to conduct a review and 
security assessment of the known shipper program. The 
Subcommittee is then required to recommend whether the program 
should be modified or eliminated.
    Additionally, this section requires the Subcommittee to 
report these findings to the TSA.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 49, UNITED STATES CODE

           *       *       *       *       *       *       *
SUBTITLE VII--AVIATION PROGRAMS

           *       *       *       *       *       *       *

PART A--AIR COMMERCE AND SAFETY

           *       *       *       *       *       *       *

SUBPART III--SAFETY

           *       *       *       *       *       *       *

CHAPTER 449--SECURITY

           *       *       *       *       *       *       *

SUBCHAPTER I--REQUIREMENTS

           *       *       *       *       *       *       *

Sec. 44917. Deployment of Federal air marshals

  (a) In General.--The Under Secretary of Transportation for 
Security under the authority provided by section 44903(d)--
          (1) may provide for deployment of Federal air 
        marshals on every passenger flight of air carriers in 
        air transportation or intrastate air transportation;
          (2) shall provide for deployment of Federal air 
        marshals on every such flight determined by the 
        Secretary to present high security risks;
          (3) shall provide for appropriate training, 
        supervision, and equipment of Federal air marshals;
          (4) shall require air carriers providing flights 
        described in paragraph (1) to provide seating for a 
        Federal air marshal on any such flight without regard 
        to the availability of seats on the flight and at no 
        cost to the United States Government or the marshal;
          (5) may require air carriers to provide, on a space-
        available basis, to an off-duty Federal air marshal a 
        seat on a flight to the airport nearest the marshal's 
        home at no cost to the marshal or the United States 
        Government if the marshal is traveling to that airport 
        after completing his or her security duties;
          (6) may enter into agreements with Federal, State, 
        and local agencies under which appropriately-trained 
        law enforcement personnel from such agencies, when 
        traveling on a flight of an air carrier, will carry a 
        firearm and be prepared to assist Federal air marshals;
          (7) shall establish procedures to ensure that Federal 
        air marshals are made aware of any armed or unarmed law 
        enforcement personnel on board an aircraft; [and]
          (8) may appoint--
                  (A) an individual who is a retired law 
                enforcement officer;
                  (B) an individual who is a retired member of 
                the Armed Forces; and
                  (C) an individual who has been furloughed 
                from an air carrier crew position in the 1-year 
                period beginning on September 11, 2001;
        as a Federal air marshal, regardless of age, if the 
        individual otherwise meets the background and fitness 
        qualifications required for Federal air marshals[.];
          (9) shall require the Federal Air Marshal Service to 
        utilize a risk-based strategy when allocating resources 
        between international and domestic flight coverage, 
        including when initially setting its annual target 
        numbers of average daily international and domestic 
        flights to cover;
          (10) shall require the Federal Air Marshal Service to 
        utilize a risk-based strategy to support domestic 
        allocation decisions;
          (11) shall require the Federal Air Marshal Service to 
        utilize a risk-based strategy to support international 
        allocation decisions; and
          (12) shall ensure that the seating arrangements of 
        Federal air marshals on aircraft are determined in a 
        manner that is risk-based and most capable of 
        responding to current threats to aviation security.
  (b) Long Distance Flights.--In making the determination under 
subsection (a)(2), nonstop, long distance flights, such as 
those targeted on September 11, 2001, should be a priority.
  (c) Interim Measures.--Until the Under Secretary completes 
implementation of subsection (a), the Under Secretary may use, 
after consultation with and concurrence of the heads of other 
Federal agencies and departments, personnel from those agencies 
and departments, on a nonreimbursable basis, to provide air 
marshal service.
  (d) Training for Foreign Law Enforcement Personnel.--
          (1) In general.--The Assistant Secretary for 
        Immigration and Customs Enforcement of the Department 
        of Homeland Security, after consultation with the 
        Secretary of State, may direct the Federal Air Marshal 
        Service to provide appropriate air marshal training to 
        law enforcement personnel of foreign countries.
          (2) Watchlist screening.--The Federal Air Marshal 
        Service may only provide appropriate air marshal 
        training to law enforcement personnel of foreign 
        countries after comparing the identifying information 
        and records of law enforcement personnel of foreign 
        countries against all appropriate records in the 
        consolidated and integrated terrorist watchlists 
        maintained by the Federal Government.
          (3) Fees.--The Assistant Secretary shall establish 
        reasonable fees and charges to pay expenses incurred in 
        carrying out this subsection. Funds collected under 
        this subsection shall be credited to the account in the 
        Treasury from which the expenses were incurred and 
        shall be available to the Assistant Secretary for 
        purposes for which amounts in such account are 
        available.

           *       *       *       *       *       *       *

                                  [all]
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