U.S. GOVERNMENT PUBLISHING OFFICE

WASHINGTON : 

1 

59–010 

" ! SENATE 

114TH CONGRESS

2d Session 

REPORT

2016

114–303 

Calendar No. 559 

CROSS-BORDER TRADE ENHANCEMENT 

ACT OF 2015 

R E P O R T 

OF THE

COMMITTEE ON HOMELAND SECURITY AND 

GOVERNMENTAL AFFAIRS 

UNITED STATES SENATE 

TO ACCOMPANY

S. 461 

TO PROVIDE FOR ALTERNATIVE FINANCING ARRANGEMENTS FOR 

THE PROVISION OF CERTAIN SERVICES AND THE CONSTRUCTION 

AND MAINTENANCE OF INFRASTRUCTURE AT LAND BORDER 

PORTS OF ENTRY, AND FOR OTHER PURPOSES 

AUGUST 30, 2016.—Ordered to be printed 

Filed, under authority of the order of the Senate of July 14, 2016 


smartinez on DSK3GLQ082PROD with REPORTS-SENE:\SEALS\Congress.#13
(II) 

COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS 

RON JOHNSON, Wisconsin, Chairman 

JOHN MCCAIN, Arizona 

ROB PORTMAN, Ohio 

RAND PAUL, Kentucky 

JAMES LANKFORD, Oklahoma 

MICHAEL B. ENZI, Wyoming 

KELLY AYOTTE, New Hampshire 

JONI ERNST, Iowa 

BEN SASSE, Nebraska 

THOMAS R. CARPER, Delaware 

CLAIRE MCCASKILL, Missouri 

JON TESTER, Montana 

TAMMY BALDWIN, Wisconsin 

HEIDI HEITKAMP, North Dakota 

CORY A. BOOKER, New Jersey 

GARY C. PETERS, Michigan 

CHRISTOPHER R. HIXON, Staff Director 

GABRIELLE D’ADAMO SINGER, Chief Counsel 

COURTNEY J. ALLEN, Counsel 

GABRIELLE A. BATKIN, Minority Staff Director 

JOHN P. KILVINGTON, Minority Deputy Staff Director 

MARY BETH SCHULTZ, Minority Chief Counsel 

HOLLY A. IDELSON, Minority Senior Counsel 

LAURA W. KILBRIDE, Chief Clerk 


smartinez on DSK3GLQ082PROD with REPORTS-SEN
Calendar No. 559 

114TH CONGRESS REPORT " ! SENATE 2d Session 114–303 

CROSS-BORDER TRADE ENHANCEMENT ACT OF 2015 

AUGUST 30, 2016.—Ordered to be printed 

Filed, under authority of the order of the Senate of July 14, 2016 

Mr. JOHNSON, from the Committee on Homeland Security and 

Governmental Affairs, submitted the following 

R E P O R T 

[To accompany S. 461] 

The Committee on Homeland Security and Governmental Affairs, 

to which was referred the bill (S. 461) to provide for alternative financing arrangements for the provision of certain services and the 

construction and maintenance of infrastructure at land border 

ports of entry, and for other purposes, having considered the same, 

reports favorably thereon with an amendment and recommends 

that the bill, as amended, do pass. 

CONTENTS 

Page 

I. Purpose and Summary .................................................................................. 1 

II. Background and Need for the Legislation ................................................... 2 

III. Legislative History ......................................................................................... 4 

IV. Section-by-Section Analysis .......................................................................... 5 

V. Evaluation of Regulatory Impact .................................................................. 7 

VI. Congressional Budget Office Cost Estimate ................................................ 7 

VII. Changes in Existing Law Made by the Bill, as Reported ........................... 8 

I. PURPOSE AND SUMMARY

The purpose of S. 461, the Cross-Border Trade Enhancement Act 

of 2016, is to reauthorize and expand the pilot programs that permit United States Customs and Border Protection (CBP) to enter 

into agreements with private or state or local government entities 

for reimbursable services or property donations at CBP ports of 

entry. The authorization of public-private partnerships under this 


smartinez on DSK3GLQ082PROD with REPORTS-SEN
2 

1 U.S. Customs and Border Protection, Resource Optimization at Ports of Entry: Fiscal Year 

2015 Report to Congress 1 (2015), available at https://www.cbp.gov/sites/default/files/documents/ 

Resource%20-Optimization%20Model-%20FY%202015%20Public%2005-13-15.pdf [hereinafter FY 

2015 Report to Congress]. 2 U.S. Customs and Border Protection, About Us, https://www.cbp.gov/about. 3 U.S. Dep’t of Homeland Sec., Fiscal Year 2017 Budget-in-Brief 27 (2016), available at https:// 

www. dhs.gov/sites/default/files/publications/FY2017llBIB-MASTER.pdf. 4 Id. 

5FY 2015 Report to Congress at 1. 

6 U.S. Customs and Border Protection, Resource Optimization Strategy, https://www.cbp.gov/ 

border-security/ports-entry/resource-opt-strategy. 7 U.S. Dep’t of Homeland Sec., Fiscal Year 2014 Budget-in-Brief 115 (2013), available at 

https://www.dhs.gov/sites/default/files/publications/FY%202014%20BIB%20-%20FINAL%20- 

508%20Formatted%20%284% 29.pdf. 8 160 Cong. Rec H475, 929 (daily ed. Jan. 15, 2014) (statement of Rep. Rogers). See also Consolidated Appropriations Act, Pub. L. No. 113–76 (2014). 9Fiscal Year 2015 Budget Request: Hearing Before the Subcomm. on Homeland Sec. of the H. 

Comm. on Appropriations, 113th Cong. (2014) (statement of R. Gil Kerlikowske, Commissioner, 

U.S. Customs and Border Protection). 10S. Rep. No. 114–116, at 12 (2015). 11 Keeping Pace with Trade, Travel, and Security: How Does CBP Prioritize and Improve Staffing and Infrastructure?: Hearing Before the Subcomm. on Border and Maritime Sec. of the H. 

Comm. on Homeland Sec., 114th Cong. (2016) (joint statement of Eugene Schied, Assistant Commissioner, Office of Admin., U.S. Customs and Border Protection, Linda Jacksta, Assistant Commissioner, Office of Human Resources Mgmt., U.S. Customs and Border Protection, and John 

Wagner, Deputy Assistant Commissioner, Office of Field Operations, U.S. Customs and Border 

Protection). 

bill will allow private sector and state and local government entities to fund improvements at CBP ports of entry that will increase 

trade and travel efficiencies at no cost to the taxpayer. 

II. BACKGROUND AND THE NEED FOR LEGISLATION

Travel and trade into the United States has been steadily increasing since 2008.1 CBP is the Federal law enforcement agency 

responsible for facilitating international travel and trade at our 

Nation’s ports of entry.2 In fiscal year (FY) 2015, CBP processed 

more than 382 million passengers at the Nation’s 328 land, sea, 

and air ports of entry.3 CBP processed over $2.4 trillion worth of 

goods at ports of entry during the same year, ‘‘while enforcing U.S. 

trade laws that protect the nation’s economy and the health and 

safety of the American public.’’ 4 CBP estimates that the magnitude 

of passengers and inbound trade in FY 2016 will exceed the previous year’s volume.5

Despite the growing volume, ‘‘CBP officer staffing levels have remained relatively the same.’’ 6 In its budget request for FY 2014, 

the Department of Homeland Security (DHS) stated that ‘‘[s]taffing 

needs . . . continue to increase as CBP takes on expanded mission 

requirements, capacity at [ports of entry] grows, and travel to the 

U.S. increases.’’ 7 In 2014, Congress authorized over $255 million in 

funding ‘‘to increase the [CBP officer] workforce by not fewer than 

2,000 new officers by the end of fiscal year 2015.’’ 8 According to 

CBP, these additional 2,000 CBP officers will result in 66,000 new 

jobs and a $4 billion increase in the United States’ Gross Domestic 

Product because of reduced wait times and expedited flow of trade 

and tourism at ports of entry.9

However, despite the significant funding for more CBP officers, 

CBP only realized a net gain of 818 officers as of June 2, 2015, due 

to attrition and the amount of time it takes to bring on new officers.10 CBP estimated it would need an additional 2,107 CBP officers through FY 2017 to meet optimal staffing.11 One reason CBP 

has been unable to meet its staffing goals is that many applicants 


smartinez on DSK3GLQ082PROD with REPORTS-SEN
3 

12 Id. 13 Id. 14 Id. (statement of Linda Jacksta, Assistant Commissioner, Office of Human Resources 

Mgmt., U.S. Customs and Border Protection). 15 Consolidated and Further Continuing Appropriations Act, Pub. L. No. 113–6, § 560, 127 

Stat. 198, 378–80 (2013). 16 Consolidated Appropriations Act, Pub. L. No. 113–76, 559, 128 Stat. 5, 279–285 (2014). 17 Id. 18 Id. See also Consolidated and Further Continuing Appropriations Act at § 560(a). 19 U.S. Customs and Border Protection, Program and Partners, https://www.cbp.gov/border-security/ports-entry/resource-opt-strategy/public-private-partnerships/reimbursable-services-program/program-and-partners. 20 Id. 21 Id. 22 Consolidated Appropriations Act, Pub. L. No. 114–113, § 550, 129 Stat. 2242, 2519 (2015). 23FY 2015 Report to Congress at 29. 24 Consolidated Appropriations Act, supra note 13. 

are unable to pass the requirements of the CBP hiring process.12

The hiring process for CBP frontline personnel is ‘‘intentionally rigorous,’’ requiring an entrance exam, qualifications review, interview, medical exam, drug screening, physical fitness test, polygraph examination, and a background investigation.13 CBP is the 

only Federal law enforcement agency with a statutory requirement 

that all frontline law enforcement applicants undergo a polygraph 

examination, which is serving as a deterrent for some applicants.14

To address the staffing and funding needs at ports of entry, Congress created pilot programs in 2013 and 2014 to provide alternative funding sources for CBP at ports of entry. Section 560 of the 

Consolidated and Further Continuing Appropriations Act of 2013 

authorized CBP to enter into agreements with private sector and 

state and local government entities that would reimburse CBP for 

customs-related personnel services at ports of entry.15 This allowed 

non-Federal entities that operate CBP ports of entry to pay for additional officers beyond what CBP normally would have allocated. 

Section 559 of the Consolidated Appropriations Act of 2014 authorized an additional five agreements per year with air ports of entry, 

for a total cap of 10 per year.16 Section 559 also expanded the applicable services for reimbursable service agreements to include 

border security services and agricultural processing.17 Both pilot 

programs were authorized for five years.18

Since 2013, CBP has entered into reimbursable service agreements with 29 stakeholders at land, sea, and air ports of entry.19

These agreements have contributed to more than 125,000 additional processing hours to meet stakeholder demand during which 

3 million travelers and almost 460,000 vehicles were processed.20

These agreements with air ports of entry contributed to decreased 

wait times by an average of nearly 30 percent at ports where they 

were implemented.21 CBP may have been able to approve more of 

these agreements had the agency not been limited in statute to 

executing only 10 agreements per year at air ports of entry.22 CBP 

identified expanding its Section 559 program public-private partnership authority as a way ‘‘to fund enhanced CBP services and 

implement new funding streams for current programs.’’ 23

Section 559 of the Consolidated Appropriations Act of 2014 also 

expanded this public-private partnership authority to allow CBP, 

in consultation with the General Services Administration (GSA), to 

enter into agreements to receive donations of property or non-personal services at ports of entry.24 GSA manages 124 of the 167 

land ports of entry along United States borders, and the Federal 


smartinez on DSK3GLQ082PROD with REPORTS-SEN
4 

25 A New Approach to Increase Trade and Security: An Examination of CBP’s Public Private 

Partnerships: Hearing Before the Subcomm. on Border and Maritime Security of the H. Comm. 

on Homeland Sec., 114th Cong. (2015) (statement of Michael Gelber, Deputy Commissioner, 

Public Buildings Service, U.S. Gen. Serv. Administration). 26 Id. 27 Id. 28 Id. 29 Id. 

Government owns or partially owns 102.25 For the past five years, Congress appropriated $300 million less than what GSA requested 

from the Federal Buildings Fund to make upgrades and modernizations at land ports of entry.26 These projects would serve to enhance border security and improve the flow of commerce.27 As a result, GSA is receiving ‘‘intense interest’’ in alternative funding 

sources for these projects at land ports of entry.28 Under Section 

559, GSA and CBP developed Donation Acceptance Procedures 

Framework to evaluate received proposals. CBP, with agreement 

from GSA, selected three proposals of which CBP, GSA, and the 

project sponsor are collaboratively planning and developing to realize CBP’s operational needs at an appropriate cost, schedule, and 

risk.29

The Cross-Border Trade Enhancement Act of 2016 will expand 

the CBP’s public-private partnership authority by removing the 

limitations for reimbursable service agreements at air ports of 

entry and by improving the application process to be more efficient 

and practical for private sector and state and local government entities submitting proposals. The bill will remove the limit on the 

number of reimbursable service agreements CBP may enter into 

with air ports of entry and allow air ports of entry to reimburse 

CBP for the salaries and expenses of up to five officers per agreement, not just overtime costs as currently allowed. This will permit 

more United States airports to enter into these public-private partnerships, including smaller regional airports with a limited number 

of CBP personnel. CBP will be required to develop procedures to 

institute year-round review of proposals for agreements for donations to ports of entry. The bill would also set a deadline for CBP 

to decide on proposals and require it to provide a reason for denials. The bill would also allow CBP to accept advance payments 

from these agreements. This bill authorizes CBP to enter into these 

public-private partnerships for 10 years. 

This bill also works to alleviate challenges in the hiring process 

of CBP law enforcement officers by allowing CBP to waive the polygraph requirement for certain eligible veterans of the Armed 

Forces. 

III. LEGISLATIVE HISTORY

S. 461, the Cross-Border Trade Enhancement Act of 2016, was 

introduced on February 11, 2015, by Senators John Cornyn and 

Amy Klobuchar. Senators Ron Johnson and Dean Heller joined as 

co-sponsors on May 18, 2016, and May 19, 2016, respectively. The 

bill was referred to the Committee on Homeland Security and Governmental Affairs. 

The Committee considered S. 461 at a business meeting on May 

25, 2016. During the business meeting, Chairman Johnson and 

Ranking Member Tom Carper offered a modified substitute amendment that made several changes to the base bill, including lifting 


smartinez on DSK3GLQ082PROD with REPORTS-SEN
5 

the cap on the number of reimbursable service agreements allowed 

at air ports of entry and allowing reimbursable service agreements 

to compensate for the salaries and expenses of up to five CBP officers, as well as overtime expenses. 

Ranking Member Carper also offered an amendment that would 

permit CBP to waive the polygraph requirement for Armed Forces 

veterans that meet certain requirements. 

Both amendments were adopted en bloc by voice vote, and the 

legislation, as modified by the two amendments, was then passed 

by voice vote with Senators Johnson, Portman, Paul, Lankford, 

Ayotte, Ernst, Sasse, Carper, McCaskill, Tester, Baldwin, 

Heitkamp, Booker, and Peters present. 

IV. SECTION-BY-SECTION ANALYSIS OF THE BILL, AS REPORTED

Section 1. Short title 

This section establishes the short title of the bill as the ‘‘CrossBorder Trade Enhancement Act of 2016.’’ 

Section 2. Repeal and transition provision 

This section repeals the pilot programs established under section 

560 of the Department of Homeland Security Appropriations Act of 

2013 and section 559 of the Department of Homeland Security Appropriations Act of 2014. It specifies that the repeal has no effect 

on any agreements entered into or accepted for consideration by 

CBP or the General Services Administration (GSA) under these 

pilot programs. 

Section 3. Definitions 

This section defines key terms in the bill. 

Section 4. Authority to enter into fee agreements for the provision 

of certain services of U.S. Customs and Border Protection 

Subsection (a) allows CBP to enter into an agreement with a private or government entity for the services of CBP personnel at 

CBP-serviced ports of entry or facilities. There is no limit on the 

number of these agreements for which CBP may enter into, but the 

Commissioner is provided the authority to impose such a limit 

should these agreements cause resource or allocation constraints. 

Under this section, CBP is authorized to enter into an agreement 

for the reimbursement of the salaries and expenses for up to five 

full-time equivalent CBP officers at an applicant air port of entry. 

CBP is required to provide equal consideration to all sizes of ports 

of entry applicants and must provide a reason to the applicant for 

any denied fee agreement proposal. 

Subsection (b) delineates the fee payments under the agreements 

entered into under this section and the parties’ rights to terminate 

the agreements. 

Subsection (c) requires CBP to provide an annual report to Congress on each fee agreement entered into during the previous year. 

Subsection (d) adds the program created by this section to the 

list of programs with required reporting requirements to Congress 

under the Trade Facilitation and Trade Enforcement Act of 2015. 


smartinez on DSK3GLQ082PROD with REPORTS-SEN
6 

Section 5. Authority to enter into agreements to accept donations for 

ports of entry 

Subsection (a) authorizes CBP, in collaboration with GSA, to 

enter into agreements for CBP to receive donations of property or 

non-personal services at CBP-serviced ports of entry. If GSA has 

custody or control of the port of entry in the agreement, GSA may 

enter into the agreement, in collaboration with CBP. 

Subsection (b) describes the acceptable uses of a donation under 

an agreement authorized by this section. 

Subsection (c) prohibits CBP from using any monetary donations 

to pay for the salaries of CBP employees. 

Subsection (d) allows the term of an agreement under this section to be as long as required to meet the terms of the agreement. 

Subsection (e) outlines the role of GSA for donation agreements. 

Subsection (f) requires CBP, in consultation with GSA, to issue 

procedures for CBP to evaluate proposals for donation agreements 

on a year-round basis. The procedures will also evaluate the possibility of engaging in cost-sharing or reimbursement agreements 

and whether such agreements would improve facility conditions 

and services provided at CBP ports of entry. 

Under subsection (g), CBP, or, in some cases, GSA, is required 

to notify an applicant for a donation agreement if the submitted 

proposal is complete or incomplete. If the proposal is deemed incomplete, CBP will provide a detailed description of all specific information needed for a complete proposal. The applicant will then 

be permitted to resubmit the proposal for a donation agreement 

with the additional information for a complete proposal. After reviewing a complete and final proposal for a donation agreement, 

CBP will make a determination of denial or approval within 180 

days and notify the applicant of the determination. This section 

also lists factors for CBP and GSA to consider in its determination 

of a proposal for a donation agreement. 

Subsection (h) allows CBP to use supplemental funding for property donated pursuant to an agreement under this section, including appropriated funds made available for the same purpose of the 

donation. 

Subsection (i) requires CBP or GSA to return any unused property or services donated pursuant to an agreement under this section. 

Subsection (j) prohibits CBP or GSA from owing any interest for 

any donation returned under subsection (i). 

Subsection (k) prohibits CBP or GSA from making expenditures 

for the receipt of a donation pursuant to an agreement under this 

section that would be an amount exceeding the value of the donation. This section does not prohibit CBP or GSA from using appropriated funds to utilize the donation during the course of its lifetime. 

Subsection (l) requires CBP, in collaboration with GSA, to report 

annually to Congress on each donation agreement entered into during the previous year. 

Subsection (m) clarifies that nothing in this section affects the responsibilities, duties, or authorities of CBP or GSA, nor does it create any rights or liabilities of the parties entering into agreements 

under this section. 


smartinez on DSK3GLQ082PROD with REPORTS-SEN
7 

Section 6 

This section authorizes the Commissioner of CBP to waive the 

polygraph requirement for applicants for CBP law enforcement positions provided that the applicants are veterans, have been 

deemed suitable for employment, hold a current security clearance 

that was granted without any waivers, and has a current Single 

Scope Background investigation. 

Section 7 

This section authorizes CBP to enter into reimbursable service or 

donation acceptance agreements for ten years. 

V. EVALUATION OF REGULATORY IMPACT

Pursuant to the requirements of paragraph 11(b) of rule XXVI of 

the Standing Rules of the Senate, the Committee has considered 

the regulatory impact of this bill and determined that the bill will 

have no regulatory impact within the meaning of the rules. The 

Committee agrees with the Congressional Budget Office’s statement that the bill contains no intergovernmental or private-sector 

mandates as defined in the Unfunded Mandates Reform Act 

(UMRA) and would impose no costs on state, local, or tribal governments. 

VI. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, July 12, 2016. 

Hon. RON JOHNSON, Chairman, 

Committee on Homeland Security and Governmental Affairs, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 461, the Cross-Border Trade 

Enhancement Act of 2016. 

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. 

Enclosure. 

S. 461—Cross-Border Trade Enhancement Act of 2016 

S. 461 would extend the current authority for Customs and Border Protection (CBP) to accept donations of real and personal property, including monetary donations, from federal or nonfederal entities to establish or improve CBP facilities at ports of entry. The bill 

also would extend the current authority for CBP to enter into 

agreements to provide customs, agricultural processing, border security, or inspection-related immigration services for a fee that 

would cover the agency’s costs. The authority to accept donations 

and enter into fee agreements expires in 2019 under current law; 

S. 461 would extend those authorities for 10 years after the date 

of enactment. 

Enacting S. 461 could affect direct spending by increasing offsetting receipts from donations and fee agreements as well as the asVerDate Sep 11 2014 02:53 Sep 01, 2016 Jkt 059010 PO 00000 Frm 00009 Fmt 6659 Sfmt 6602 E:\HR\OC\SR303.XXX SR303

smartinez on DSK3GLQ082PROD with REPORTS-SEN
8 

sociated direct spending of those funds; therefore, pay-as-you-go 

procedures apply. However, CBO estimates that the net effect on 

direct spending would be insignificant. Enacting the bill would not 

affect revenues. 

CBO estimates that enacting the legislation would not increase 

net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2027. 

S. 461 contains no intergovernmental or private-sector mandates 

as defined in the Unfunded Mandates Reform Act. Any costs to 

state, local, and tribal governments from engaging CBP to provide 

certain services would result from voluntary agreements. 

The CBO staff contact for this estimate is Mark Grabowicz. The 

estimate was approved by H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with paragraph 12 of rule XXVI of the Standing 

Rules of the Senate, changes in existing law made by the bill, as 

reported, are shown as follows: (existing law proposed to be omitted 

is enclosed in brackets, new matter is printed in italic, and existing 

law in which no change is proposed is shown in roman): 

UNITED STATES CODE 

* * * * * * * 

TITLE 6—DOMESTIC SECURITY 

* * * * * * * 

CHAPTER 1—HOMELAND SECURITY ORGANIZATION 

* * * * * * * 

Subchapter IV—Border, Maritime, and Transportation 

Security 

* * * * * * * 

PART B—U.S. CUSTOMS AND BORDER PROTECTION 

* * * * * * * 

SEC. 221. REQUIREMENTS WITH RESPECT TO ADMINISTERING POLYGRAPH EXAMINATIONS TO LAW ENFORCEMENT PERSONNEL OF U.S. CUSTOMS AND BORDER PROTECTION 

(a) IN GENERAL.—The Secretary øThe Secretary¿ of Homeland 

Security shall ensure that— 

(1) by not later than 2 years after January 4, 2011, all applicants for law enforcement positions with U.S. Customs and 

Border Protection (except as provided in subsection (b)) receive 

polygraph examinations before being hired for such a position; 

and 

(2) * * * 

(b) WAIVER.—The Commissioner of U.S. Customs and Border Protection may waive the polygraph examination requirement under 

subsection (a)(1) for any applicant who— 


smartinez on DSK3GLQ082PROD with REPORTS-SEN
9 

(1) is deemed suitable for employment; 

(2) holds a current, active Top Secret/Sensitive Compartmented Information Clearance; 

(3) has a current Single Scope Background Investigation; 

(4) was not granted any waivers to obtain his or her clearance; and 

(5) is a veteran (as such term is defined in section 2108 or 

2109(a) of title 5, United States Code). 

* * * * * * * 

CONSOLIDATED APPROPRIATIONS ACT, 2013 

* * * * * * * 

DIVISION D—DEPARTMENT OF HOMELAND 

SECURITY APPROPRIATIONS, 2013 

* * * * * * * 

TITLE V—GENERAL PROVISIONS 

[SEC. 560. 

ø(a) Notwithstanding sections 58c(e) and 1451 of title 19, United 

States Code, upon the request of any persons, the Commissioner of 

U.S. Customs and Border Protection may enter into reimbursable 

fee agreements for a period of up to 5 years with such persons for 

the provision of U.S. Customs and Border Protection services and 

any other costs incurred by U.S. Customs and Border Protection relating to such services. Such requests may include additional U.S. 

Customs and Border Protection services at existing U.S. Customs 

and Border Protection-serviced facilities (including but not limited 

to payment for overtime), the provision of U.S. Customs and Border 

Protection services at new facilities, and expanded U.S. Customs 

and Border Protection services at land border facilities. 

ø(1) By December 31, 2013, the Commissioner may enter 

into not more than 5 agreements under this section. 

ø(2) The Commissioner shall not enter into such an agreement if it would unduly and permanently impact services funded in this or any other appropriations Acts, or provided from 

any accounts in the Treasury of the United States derived by 

the collection of fees. 

ø(b) Funds collected pursuant to any agreement entered into 

under this section shall be deposited in a newly established account 

as offsetting collections and remain available until expended, without fiscal year limitation, and shall directly reimburse each appropriation for the amount paid out of that appropriation for any expenses incurred by U.S. Customs and Border Protection in providing U.S. Customs and Border Protection services and any other 

costs incurred by U.S. Customs and Border Protection relating to 

such services. 

ø(c) The amount of the fee to be charged pursuant to an agreement authorized under subsection (a) of this section shall be paid 

by each person requesting U.S. Customs and Border Protection 

services and shall include, but shall not be limited to, the salaries 


smartinez on DSK3GLQ082PROD with REPORTS-SEN
10 

and expenses of individuals employed by U.S. Customs and Border 

Protection to provide such U.S. Customs and Border Protection 

services and other costs incurred by U.S. Customs and Border Protection relating to those services, such as temporary placement or 

permanent relocation of those individuals. 

ø(d) U.S. Customs and Border Protection shall terminate the provision of services pursuant to an agreement entered into under 

subsection (a) with a person that, after receiving notice from the 

Commissioner that a fee imposed under subsection (a) is due, fails 

to pay the fee in a timely manner. In the event of such termination, 

all costs incurred by U.S. Customs and Border Protection, which 

have not been reimbursed, will become immediately due and payable. Interest on unpaid fees will accrue based on current U.S. 

Treasury borrowing rates. Additionally, any person who, after notice and demand for payment of any fee charged under subsection 

(a) of this section, fails to pay such fee in a timely manner shall 

be liable for a penalty or liquidated damage equal to two times the 

amount of the fee. Any amount collected pursuant to any agreement entered into under this subsection shall be deposited into the 

account specified under subsection (b) of this section and shall be 

available as described therein. 

ø(e) Each facility at which such U.S. Customs and Border Protection services are performed shall provide, maintain, and equip, 

without cost to the Government, facilities in accordance with U.S. 

Customs and Border Protection specifications. 

ø(f) The authority found in this section may not be used to enter 

into agreements to expand or begin to provide U.S. Customs and 

Border Protection services outside of the United States. 

ø(g) The authority found in this section may not be used at existing U.S. Customs and Border Protection-serviced air facilities to 

enter into agreements for costs other than payment of overtime. 

ø(h) The Commissioner shall notify the appropriate Committees 

of Congress 15 days prior to entering into any agreement under the 

authority of this section and shall provide a copy of the agreement 

to the appropriate Committees of Congress. 

ø(i) For purposes of this section the terms: 

ø(1) U.S. Customs and Border Protection ‘‘services’’ means 

any activities of any employee or contractor of U.S. Customs 

and Border Protection pertaining to customs and immigration 

inspection-related matters. 

ø(2) ‘‘Person’’ means any natural person or any corporation, 

partnership, trust, association, or any other public or private 

entity, or any officer, employee, or agent thereof. 

ø(3) ‘‘Appropriate Committees of Congress’’ means the Committees on Appropriations; Finance; Judiciary; and Homeland 

Security and Governmental Affairs of the Senate and the Committees on Appropriations; Judiciary; Ways and Means; and 

Homeland Security of the House of Representatives.¿ 

* * * * * * * 

CONSOLIDATED APPROPRIATIONS ACT, 2014 

* * * * * * * 


smartinez on DSK3GLQ082PROD with REPORTS-SEN
11 

DIVISION F—DEPARTMENT OF HOMELAND 

SECURITY APPROPRIATIONS ACT, 2014 

* * * * * * * 

TITLE V—GENERAL PROVISIONS 

øSEC. 559. 

ø(a) IN GENERAL.—In addition to existing authorities, the Commissioner of U.S. Customs and Border Protection, in collaboration 

with the Administrator of General Services, is authorized to conduct a pilot program in accordance with this section to permit U.S. 

Customs and Border Protection to enter into partnerships with private sector and government entities at ports of entry for certain 

services and to accept certain donations. 

ø(b) RULE OF CONSTRUCTION.—Except as otherwise provided in 

this section, nothing in this section may be construed as affecting 

in any manner the responsibilities, duties, or authorities of U.S. 

Customs and Border Protection or the General Services Administration. 

ø(c) DURATION.—The pilot program described in subsection (a) 

shall be for five years. A partnership entered into during such pilot 

program may last as long as required to meet the terms of such 

partnership. At the end of such five year period, the Commissioner 

may request that such pilot program be made permanent. 

ø(d) COORDINATION.— ø(1) IN GENERAL.—The Commissioner, in consultation with 

participating private sector and government entities in a partnership under subsection (a), shall provide the Administrator 

with information relating to U.S. Customs and Border Protection’s requirements for new facilities or upgrades to existing facilities at land ports of entry. 

ø(2) CRITERIA.—The Commissioner and the Administrator 

shall establish criteria for entering into a partnership under 

subsection (a) that include the following: 

ø(A) Selection and evaluation of potential partners. 

ø(B) Identification and documentation of roles and responsibilities between U.S. Customs and Border Protection, General Services Administration, and private and 

government partners. 

ø(C) Identification, allocation, and management of explicit and implicit risks of partnering between U.S. Customs and Border Protection, General Services Administration, and private and government partners. 

ø(D) Decision-making and dispute resolution processes 

in partnering arrangements. 

ø(E) Criteria and processes for U.S. Customs and Border 

Protection and General Services Administration to terminate agreements if private or government partners are not 

meeting the terms of such a partnership, including the security standards established by U.S. Customs and Border 

Protection. 

ø(3) EVALUATION PLAN.—The Commissioner, in collaboration 

with the Administrator, shall submit to the Committee on 


smartinez on DSK3GLQ082PROD with REPORTS-SEN
12 

Homeland Security, the Committee on Transportation and Infrastructure, and the Committee on Appropriations of the 

House of Representatives and the Committee on Homeland Security and Governmental Affairs, the Committee on Environment and Public Works, and the Committee on Appropriations 

of the Senate, an evaluation plan for the pilot program described in subsection (a) that includes the following: 

ø(A) Well-defined, clear, and measurable objectives. 

ø(B) Performance criteria or standards for determining 

the performance of such pilot program. 

ø(C) Clearly articulated evaluation methodology, including— 

ø(i) sound sampling methods; 

ø(ii) a determination of appropriate sample size for 

the evaluation design; 

ø(iii) a strategy for tracking such pilot program’s 

performance; and 

ø(iv) an evaluation of the final results. 

ø(D) A plan detailing the type and source of data necessary to evaluate such pilot program, methods for data 

collection, and the timing and frequency of data collection. 

ø(e) AUTHORITY TO ENTER INTO AGREEMENTS FOR THE PROVISION

OF CERTAIN SERVICES AT PORTS OF ENTRY.— ø(1) IN GENERAL.—Notwithstanding section 13031(e) of the 

Consolidated Omnibus Budget Reconciliation Act of 1985 (19 

U.S.C. 58c(e)) and section 451 of the Tariff Act of 1930 (19 

U.S.C. 1451), the Commissioner may, during the pilot program 

described in subsection (a) and upon the request of a private 

sector or government entity with which U.S. Customs and Border Protection has entered into a partnership, enter into a reimbursable fee agreement with such entity under which— 

ø(A) U.S. Customs and Border Protection will provide 

services described in paragraph (2) at a port of entry; 

ø(B) such entity will pay a fee imposed under paragraph 

(4) to reimburse U.S. Customs and Border Protection for 

the costs incurred in providing such services; and 

ø(C) each facility at which U.S. Customs and Border 

Protection services are performed shall be provided, maintained, and equipped by such entity, without cost to the 

Federal Government, in accordance with U.S. Customs and 

Border Protection specifications. 

ø(2) SERVICES DESCRIBED.—Services described in this paragraph are any activities of any employee or contractor of U.S. 

Customs and Border Protection pertaining to customs, agricultural processing, border security, and immigration inspectionrelated matters at ports of entry. 

ø(3) LIMITATIONS.— 

ø(A) IMPACTS OF SERVICES.—The Commissioner may not 

enter into a reimbursable fee agreement under this subsection if such agreement would unduly and permanently 

impact services funded in this or any other appropriations 

Act, or provided from any account in the Treasury of the 

United States derived by the collection of fees. 

ø(B) FOR CERTAIN COSTS.—The authority found in this 

subsection may not be used at U.S. Customs and Border 


smartinez on DSK3GLQ082PROD with REPORTS-SEN
13 

Protection-serviced air ports of entry to enter into reimbursable fee agreements for costs other than payment of 

overtime. 

ø(C) The authority found in this subsection may not be 

used to enter into new preclearance agreements or begin 

to provide U.S. Customs and Border Protection services 

outside of the United States. 

ø(D) The authority found in this subsection shall be limited with respect to U.S. Customs and Border Protectionserviced air ports of entry to five pilots per year. 

ø(4) FEE.— ø(A) IN GENERAL.—The amount of the fee to be charged 

pursuant to an agreement authorized under paragraph (1) 

shall be paid by each private sector and government entity 

requesting U.S. Customs and Border Protection services, 

and shall include the salaries and expenses of individuals 

employed by U.S. Customs and Border Protection to provide such services and other costs incurred by U.S. Customs and Border Protection relating to such services, such 

as temporary placement or permanent relocation of such 

individuals. 

ø(B) OVERSIGHT OF FEES.—The Commissioner shall develop a process to oversee the activities reimbursed by the 

fees charged pursuant to an agreement authorized under 

paragraph (1) that includes the following: 

ø(i) A determination and report on the full costs of 

providing services, including direct and indirect costs, 

including a process for increasing such fees as necessary. 

ø(ii) Establishment of a monthly remittance schedule to reimburse appropriations. 

ø(iii) Identification of overtime costs to be reimbursed by such fees. 

ø(5) DEPOSIT OF FUNDS.—Funds collected pursuant to any 

agreement entered into under paragraph (1) shall be deposited 

as offsetting collections and remain available until expended, 

without fiscal year limitation, and shall directly reimburse 

each appropriation for the amount paid out of that appropriation for any expenses incurred by U.S. Customs and Border 

Protection in providing U.S. Customs and Border Protection 

services and any other costs incurred by U.S. Customs and 

Border Protection relating to such services. 

ø(6) TERMINATION.—The Commissioner shall terminate the 

provision of services pursuant to an agreement entered into 

under paragraph (1) with a private sector or government entity 

that, after receiving notice from the Commissioner that a fee 

imposed under paragraph (4) is due, fails to pay such fee in a 

timely manner. In the event of such termination, all costs incurred by U.S. Customs and Border Protection, which have not 

been reimbursed, will become immediately due and payable. 

Interest on unpaid fees will accrue based on current Treasury 

borrowing rates. Additionally, any private sector or government entity that, after notice and demand for payment of any 

fee charged under paragraph (4), fails to pay such fee in a 

timely manner shall be liable for a penalty or liquidated damVerDate Sep 11 2014 02:53 Sep 01, 2016 Jkt 059010 PO 00000 Frm 00015 Fmt 6659 Sfmt 6602 E:\HR\OC\SR303.XXX SR303

smartinez on DSK3GLQ082PROD with REPORTS-SEN
14 

age equal to two times the amount of such fee. Any amount 

collected pursuant to any agreement entered into under paragraph (1) shall be deposited into the account specified under 

paragraph (5) and shall be available as described therein. 

ø(7) NOTIFICATION.—The Commissioner shall notify the Congress 15 days prior to entering into any agreement under paragraph (1) and shall provide a copy of such agreement. 

ø(f) DONATIONS.— 

(1) IN GENERAL.—Subject to paragraph (2), the Commissioner 

and the Administrator may, during the pilot program described 

in subsection (a), accept a donation of real or personal property 

(including monetary donations) or nonpersonal services from 

any private sector or government entity with which U.S. Customs and Border Protection has entered into a partnership. 

ø(2) ALLOWABLE USES OF DONATIONS.—The Commissioner 

and the Administrator, with respect to any donation provided 

pursuant to paragraph (1), may— 

ø(A) use such donation for necessary activities related to 

the construction, alteration, operation, or maintenance of 

an existing port of entry facility under the jurisdiction, 

custody, and control of the Commissioner, including expenses related to— 

ø(i) land acquisition, design, construction, repair and 

alteration; 

ø(ii) furniture, fixtures, and equipment; 

ø(iii) the deployment of technology and equipment; 

and 

ø(iv) operations and maintenance; or 

ø(B) transfer such property or services to the Administrator for necessary activities described in subparagraph 

(A) related to a new or existing port of entry under the jurisdiction, custody, and control of the Administrator, subject to chapter 33 of title 40, United States Code. 

ø(3) CONSULTATION AND BUDGET.— 

ø(A) WITH THE PRIVATE SECTOR OR GOVERNMENT ENTITY.—To accept a donation described in paragraph (1), the 

Commissioner and the Administrator shall— 

ø(i) consult with the appropriate stakeholders and 

the private sector or government entity that is providing the donation and provide such entity with a description of the intended use of such donation; and 

ø(ii) submit to the Committee on Appropriations, the 

Committee on Homeland Security, and the Committee 

on Transportation and Infrastructure of the House of 

Representatives and the Committee on Appropriations, the Committee on Homeland Security and Governmental Affairs, and the Committee on Environment and Public Works of the Senate a report not 

later than one year after the date of enactment of this 

Act, and annually thereafter, that describes— 

ø(I) the accepted donations received under this 

subsection; 

ø(II) the ports of entry that received such donations; and 


smartinez on DSK3GLQ082PROD with REPORTS-SEN
15 

ø(III) how each donation helped facilitate the 

construction, alternation, operation, or maintenance of a new or existing land port of entry. 

ø(B) SAVINGS PROVISION.—Nothing in this paragraph 

may be construed to— 

ø(i) create any right or liability of the parties referred to in subparagraph (A); or 

ø(ii) affect any consultation requirement under any 

other law. 

ø(4) EVALUATION PROCEDURES.—Not later than 180 days 

after the date of the enactment of this Act, the Commissioner, 

in consultation with the Administrator, shall establish procedures for evaluating a proposal submitted by a private sector 

or government entity to make a donation of real or personal 

property (including monetary donations) or nonpersonal services under paragraph (1) relating to a port of entry under the 

jurisdiction, custody and control of the Commissioner or the 

Administrator and make any such evaluation criteria publicly 

available. 

ø(5) CONSIDERATIONS.—In determining whether or not to approve a proposal referred to in paragraph (4), the Commissioner or the Administrator shall consider— 

ø(A) the impact of such proposal on the port of entry at 

issue and other ports of entry on the same border; 

ø(B) the potential of such proposal to increase trade and 

travel efficiency through added capacity; 

ø(C) the potential of such proposal to enhance the security of the port of entry at issue; 

ø(D) the funding available to complete the intended use 

of a donation under this subsection, if such donation is 

real property; 

ø(E) the costs of maintaining and operating such donation; 

ø(F) whether such donation, if real property, satisfies 

the requirements of such proposal, or whether additional 

real property would be required; 

ø(G) an explanation of how such donation, if real property, was secured, including if eminent domain was used; 

ø(H) the impact of such proposal on staffing requirements; and 

ø(I) other factors that the Commissioner or Administrator determines to be relevant. 

ø(6) UNCONDITIONAL MONETARY DONATIONS.—A monetary donation shall be made unconditionally, although the donor may 

specify— 

ø(A) the port of entry facility or facilities to be benefitted 

from such donation; and 

ø(B) the timeframe during which such donation shall be 

used. 

ø(7) SUPPLEMENTAL FUNDING.—Real or personal property (including monetary donations) or nonpersonal services donated 

pursuant to paragraph (1) may be used in addition to any 

other funding (including appropriated funds), property, or services made available for the same purpose. 


smartinez on DSK3GLQ082PROD with REPORTS-SEN
16 

ø(8) RETURN OF DONATIONS.—If the Commissioner or the Administrator does not use the real property or monetary donation donated pursuant to paragraph (1) for the specific port of 

entry facility or facilities designated by the donor or within the 

timeframe specified by the donor, such donated real property 

or money may be returned to the donor. No interest shall be 

owed to the donor with respect to any donation of funding provided under such paragraph (1) that is returned pursuant to 

this paragraph. 

ø(9) SAVINGS PROVISIONS.—Nothing in this subsection may 

be construed to affect or alter the existing authority of the 

Commissioner or the Administrator to construct, alter, operate, 

and maintain port of entry facilities. 

ø(g) ANNUAL REPORTS.—The Commissioner, in collaboration with 

the Administrator, shall annually submit to the Committee on 

Homeland Security and the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on 

Homeland Security and Governmental Affairs and the Committee 

on Environment and Public Works of the Senate a report on the 

pilot program and activities undertaken pursuant thereto in accordance with this Act. 

ø(h) DEFINITIONS.—In this section— 

ø(1) the term ‘‘private sector entity’’ means any corporation, 

partnership, trust, association, or any other private entity, or 

any officer, employee, or agent thereof; 

ø(2) the term ‘‘Commissioner’’ means the Commissioner of 

U.S. Customs and Border Protection; and (3) the term ‘‘Administrator’’ means the Administrator of General Services. 

ø(i) ROLE OF GENERAL SERVICES ADMINISTRATION.—Under this 

section, collaboration with the Administrator of General Services is 

required only with respect to partnerships at land ports of entry.¿ 

* * * * * * * 

TRADE FACILITATION AND TRADE 

ENFORCEMENT ACT OF 2015 

* * * * * * * 

TITLE IX—MISCELLANEOUS PROVISIONS 

* * * * * * * 

SEC. 907. REPORT ON CERTAIN U.S. CUSTOMS AND BORDER PROTECTION AGREEMENTS. 

(a) * * * 

(b) 

(1) * * * 

(2) * * * 

(3) the program under which U.S. Customs and Border Protection collects a fee for the use of customs services at designated facilities under section 236 of the Trade and Tariff Act 

of 1984 (19 U.S.C. 58b); øor¿ 

(4) the program established by subtitle B of title VIII of this 

Act authorizing U.S. Customs and Border Protection to establish preclearance operations in foreign countriesø.¿; or 


smartinez on DSK3GLQ082PROD with REPORTS-SEN
17 

(5) the program for entering into reimbursable fee agreements 

for the provision of U.S. Customs and Border Protection services established by the Cross-Border Trade Enhancement Act of 

2016. 

* * * * * * * 

Æ 


smartinez on DSK3GLQ082PROD with REPORTS-SEN