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[House Report 113-528]
[From the U.S. Government Publishing Office]

113th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     113-528

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 ESSENTIAL TRANSPORTATION WORKER IDENTIFICATION CREDENTIAL ASSESSMENT 
                                  ACT

                                _______
                                

 July 17, 2014.--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. 3202]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security, to whom was referred 
the bill (H.R. 3202) to require the Secretary of Homeland 
Security to prepare a comprehensive security assessment of the 
transportation security card program, 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
Hearings.........................................................     4
Committee Consideration..........................................     4
Committee Votes..................................................     4
Committee Oversight Findings.....................................     4
New Budget Authority, Entitlement Authority, and Tax Expenditures     4
Congressional Budget Office Estimate.............................     5
Statement of General Performance Goals and Objectives............     6
Duplicative Federal Programs.....................................     6
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     6
Federal Mandates Statement.......................................     6
Preemption Clarification.........................................     6
Disclosure of Directed Rule Makings..............................     6
Advisory Committee Statement.....................................     6
Applicability to Legislative Branch..............................     6
Section-by-Section Analysis of the Legislation...................     7
Changes in Existing Law Made by the Bill, as Reported............     9
Committee Correspondence.........................................     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 ``Essential Transportation Worker 
Identification Credential Assessment Act''.

SEC. 2. COMPREHENSIVE SECURITY ASSESSMENT OF THE TRANSPORTATION 
                    SECURITY CARD PROGRAM.

  (a) In General.--Not later than one year after the date of enactment 
of this Act, the Secretary of Homeland Security shall submit to the 
Committee on Homeland Security of the House of Representatives, the 
Committee on Commerce, Science, and Transportation of the Senate, and 
the Comptroller General of the United States a comprehensive assessment 
of the effectiveness of the transportation security card program under 
section 70105 of title 46, United States Code, at enhancing security 
and reducing security risks for facilities and vessels regulated 
pursuant to section 102 of Public Law 107-295. Such assessment shall be 
conducted by a national laboratory that, to the extent practicable, is 
within the Department of Homeland Security laboratory network with 
expertise in maritime security or by a maritime security university-
based center within the Department of Homeland Security centers of 
excellence network.
  (b) Contents.--The comprehensive assessment shall include--
          (1) an evaluation of the extent to which the program, as 
        implemented, addresses known or likely security risks in the 
        maritime environment;
          (2) an evaluation of the extent to which deficiencies 
        identified by the Comptroller General have been addressed; and
          (3) a cost-benefit analysis of the program, as implemented.
  (c) Corrective Action Plan; Program Reforms.--Not later than 60 days 
after the Secretary submits the assessment under subsection (a), the 
Secretary shall submit a corrective action plan to the Committee on 
Homeland Security of the House of Representatives and the Committee on 
Commerce, Science, and Transportation of the Senate that responds to 
the assessment under subsection (b). The corrective action plan shall 
include an implementation plan with benchmarks, may include 
programmatic reforms, revisions to regulations, or proposals for 
legislation, and shall be considered in any rule making by the 
Department relating to the transportation security card program.
  (d) Comptroller General Review.--Not later than 120 days after the 
Secretary issues the corrective action plan under subsection (c), the 
Comptroller General shall--
          (1) review the extent to which such plan implements--
                  (A) recommendations issued by the national laboratory 
                or maritime security university-based center, as 
                applicable, in the assessment submitted under 
                subsection (a); and
                  (B) recommendations issued by the Comptroller General 
                before the enactment of this Act; and
          (2) inform the Committee on Homeland Security of the House of 
        Representatives and the Committee on Commerce, Science, and 
        Transportation of the Senate as to the responsiveness of such 
        plan to such recommendations.
  (e) Transportation Security Card Reader Rule.--
          (1) In general.--The Secretary of Homeland Security may not 
        issue a final rule requiring the use of transportation security 
        card readers until--
                  (A) the Comptroller General informs the Committees on 
                Homeland Security of the House of Representatives and 
                Commerce, Science and Transportation of the Senate that 
                the submission under subsection (a) is responsive to 
                the recommendations of the Comptroller General; and
                  (B) the Secretary issues an updated list of 
                transportation security card readers that are 
                compatible with active transportation security cards.
          (2) Limitation on application.--Paragraph (1) shall not apply 
        with respect to any final rule issued pursuant to the notice of 
        proposed rulemaking on Transportation Worker Identification 
        Credential (TWIC)-Reader Requirements published by the Coast 
        Guard on March 22, 2013 (78 Fed. Reg. 17781)
  (f) Comptroller General Oversight.--Not less than 18 months after the 
date of the issuance of the corrective action plan under subsection 
(c), and every six months thereafter during the 3-year period following 
the date of the issuance of the first report under this subsection, the 
Comptroller General shall report to the Committee on Homeland Security 
of the House of Representatives and the Committee on Commerce, Science, 
and Transportation of the Senate regarding implementation of the 
corrective action plan.

                          PURPOSE AND SUMMARY

    The purpose of H.R. 3202 is to require the Secretary of 
Homeland Security to prepare a comprehensive security 
assessment of the transportation security card program, and for 
other purposes.

                  BACKGROUND AND NEED FOR LEGISLATION

    The Transportation Worker Identification Credential (TWIC) 
program was established by the Maritime Transportation Security 
Act of 2002 (MTSA) (Pub. L. 107-295) to ensure secure access 
control to port facilities and vessels by capturing biometric 
information of all transportation workers with unescorted 
access to secure areas. Currently, to obtain a TWIC card, an 
individual must pay $129.75, undergo a name-based security 
threat assessment, and submit his or her fingerprints for a 
criminal history records check. There are approximately 3 
million maritime workers with a TWIC.
    Section 104 of the Security and Accountability for Every 
Port Act of 2006 (SAFE Port Act) (Pub. L. 109-347) required the 
Secretary of Homeland Security to complete a TWIC card reader 
pilot and issue a final rule for the deployment of TWIC card 
readers by April 13, 2009. However, due to several delays, 
biometric readers are not in place and a final rule regarding 
the reader has not been published. The failure of the 
Department of Homeland Security to implement a biometric card 
reader rule has resulted in the TWIC card being little more 
than an expensive ``flash pass.''
    Over the past 10 years, the Government Accountability 
Office (GAO) has issued a number of reports on the development 
and implementation of the TWIC program and made several 
recommendations. In GAO's most recent report on the TWIC 
program and card reader pilot [GAO-13-198], GAO strongly 
questioned how, if at all, the TWIC program improves maritime 
security and recommended a security assessment of the TWIC 
program be conducted. GAO determined that the pilot data was 
incomplete, inaccurate, and unreliable to inform a final 
rulemaking, and recommended Congress halt the card reader rule 
until a comprehensive effectiveness assessment of the TWIC 
program was completed. The Committee remains concerned with the 
completeness, accuracy, and reliability of the pilot data to 
inform the final reader rule and agrees with GAO recommendation 
that an independent effectiveness assessment should be 
completed on the TWIC program and requires such an assessment 
through this legislation.
    It has been more than a decade since the legislation that 
established the TWIC program was enacted into law. GAO 
recommended that an independent effectiveness assessment of the 
program be carried out in May 2013; to date, no such assessment 
has been completed. The goal of this legislation is to finally 
answer the question: ``how, if at all, does the TWIC program 
improve maritime security?''
    The manner in which the TWIC program has been implemented 
to date does not give the Committee the confidence that the 
program is on a proper course. The issuance of the assessment, 
as required under H.R. 3202, will help inform Congress as it 
makes decisions with regard to the future of the program.

                                HEARINGS

    No hearings were held on H.R. 3202.

                        COMMITTEE CONSIDERATION

    The Committee met on June 11, 2014, to consider H.R. 3202, 
and ordered the measure to be reported to the House with a 
favorable recommendation, amended, by voice vote. Prior to 
consideration, the Chair discharged the Subcommittee on 
Transportation Security from further consideration of H.R. 
3202. The Committee took the following actions:

    The following amendments were offered:
An Amendment in the Nature of a Substitute offered by Ms. 
Jackson Lee (#1); was AGREED TO, amended, by voice vote.

An en bloc amendment to the Amendment in the Nature of a 
Substitute to H.R. 3202 offered by Mrs. Miller of Michigan 
(#1A); was AGREED TO by voice vote.

    Consisting of the following amendments:
    An amendment:
    In section 2(e), strike paragraph (2) and insert a new paragraph 
entitled ``(2) Limitation on Application.''

    An amendment:
    Page 2, line 24, strike ``and'' and insert a comma.
    Page 3, line 2, before the period insert ``, and shall be 
considered in any rule making by the Department relating to the 
transportation security card program''.

    The Subcommittee on Border and Maritime Security met on May 
20, 2014, to consider H.R. 3202, and ordered the measure to be 
forwarded to the Full Committee with a favorable 
recommendation, amended, by voice vote. The Committee took the 
following actions:
    The following amendments were offered:

An Amendment in the Nature of a Substitute offered by Ms. 
Jackson Lee (#1); was AGREED TO by voice vote.

                            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. 3202.

                      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. 
3202, the Essential Transportation Worker Identification 
Credential Assessment 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, July 10, 2014.
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. 3202, the 
Essential Transportation Worker Identification Credential 
Assessment Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 3202--Essential Transportation Worker Identification Credential 
        Assessment Act

    H.R. 3202 would direct the Secretary of Homeland Security 
to assess the effectiveness of the Transportation Worker 
Identification Credential (TWIC) program. That program was 
established under the Maritime Transportation Security Act 
(MTSA), which requires the Secretary of Homeland Security to 
provide a biometric security credential for personnel who 
require unescorted access to secure areas of MTSA-regulated 
facilities and vessels and to all mariners who hold credentials 
issued by the U.S. Coast Guard. Based on the findings of the 
proposed assessment, H.R. 3202 would direct the Secretary to 
identify and implement corrective actions necessary to improve 
the effectiveness of the TWIC program and require the 
Government Accountability Office (GAO) to report to the 
Congress on the status of those efforts. Finally, H.R. 3202 
would specify conditions that would pertain to certain 
rulemakings related to the TWIC program.
    Based on information from the Coast Guard and GAO, CBO 
estimates that implementing H.R. 3202 would cost about $1.5 
million in 2015, assuming appropriation of the necessary 
amounts. That estimate is based on the historical cost of 
studies and analyses undertaken by those agencies that are 
similar in scope to those envisioned under the bill. Enacting 
H.R. 3202 would not affect direct spending or revenues; 
therefore, pay-as-you-go procedures do not apply.
    H.R. 3202 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.
    The CBO staff contact for this estimate is Megan Carroll. 
The estimate was approved by Theresa Gullo, 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. 3202 contains the following 
general performance goals and objectives, including outcome 
related goals and objectives authorized.
    The performance goals and objectives of H.R. 3202 are the 
independent comprehensive assessment and corrective action plan 
required to determine the security value of the Transportation 
Worker Identification Credential (TWIC) program. The Committee 
believes that these objectives are essential so that Congress 
may be better informed as we determine the proper path forward 
for the TWIC program.

                      DUPLICATIVE FEDERAL PROGRAMS

    The Committee finds that H.R. 3202 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. 3202 does 
not preempt any State, local, or Tribal law.

                  DISCLOSURE OF DIRECTED RULE MAKINGS

    The Committee estimates that H.R. 3202 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 bill may be cited as the 
``Essential Transportation Worker Identification Credential 
Assessment Act''.

Sec. 2. Comprehensive security assessment of the Transportation 
        Security Card Program

(a) In General.--
    This subsection requires the Secretary of Homeland Security 
to submit a comprehensive assessment of the effectiveness of 
the Transportation Worker Identification Credential (TWIC) 
Program. Specifically, the assessment must address how 
effective the TWIC program is at enhancing security and 
reducing security risk for facilities and vessels regulated by 
the Maritime Transportation Security Act (MTSA) (Pub. L. 107-
295). Finally, H.R. 3202 requires that the assessment be 
conducted by a national laboratory within the DHS laboratory 
network or university based center in the DHS center of 
excellence network.
    The requirements of this subsection are consistent with the 
recommendations made by the Government Accountability Office 
report ``Transportation Worker Identification Credential: Card 
Reader Pilot Results Are Unreliable; Security Benefits Need to 
Be Reassessed'' [GAO-13-198].
    The Committee strongly believes it is appropriate for a 
third party that specializes in maritime security--such as a 
National Laboratory or a DHS Center of Excellence--to conduct 
this assessment. The Committee believes it is important that 
Congress receives an independent assessment of the 
effectiveness of the TWIC program to inform the future of the 
program.
(b) Contents.--
    This subsection identifies the primary components required 
under the comprehensive assessment. These include: an 
evaluation of the extent to which the program currently 
addresses known or likely security threats in the maritime 
environment and the extent to which the deficiencies in the 
program identified by the GAO have been addressed. This section 
also requires a cost benefit analysis of the program as 
implemented. This assessment must address how, if at all, the 
TWIC program, as currently implemented, meets its stated 
mission, and should consider whether the Department's 
assumptions about security vulnerability, which the TWIC was 
intended to mitigate, are valid. It is the Committee's 
expectation that this effectiveness assessment will provide 
Congress and the Department a level of analysis necessary to 
make decisions about reforming the program to bolster the 
security of MTSA-regulated facilities and vessels.
    The TWIC program, as originally envisioned by Congress, was 
to provide a tamper resistant biometric credential to be 
verified by a card reader with biometric capabilities for 
maritime workers who require unescorted access to MTSA-
regulated secure areas of facilities and vessels. Twelve years 
after MTSA required a biometric enabled maritime worker 
identification card, the TWIC program still lacks the 
capability to provide real-time biometric verification of 
cardholders through use readers. Utilizing the TWIC card as a 
``flash pass'' to grant unescorted access to a port or vessel 
introduces a certain amount of risk. Should the final reader 
rule mandate the installation at less than all MTSA-regulated 
facilities and vessels, as was proposed in the Coast Guard's 
Notice of Proposed Rulemaking, the Committee expects the 
Department to engage Congress on proposed changes to the scope 
of workers that would be required to have a biometric card. The 
Committee also urges the Department, on an ongoing basis, to 
seek ways for the TWIC program to be made more affordable, 
particularly with respect to the costs incurred by 
transportation workers.
(c) Corrective Action Plan: Program Reforms.--
    This subsection requires the Secretary of Homeland Security 
to submit a corrective action plan based on the results of the 
security assessment required under subsection (a). This plan 
shall include benchmarks for TWIC implementation and suggested 
program reforms, revisions to regulations, and proposals for 
legislation.
    The Committee directs DHS to ensure the corrective action 
plan to address all recommendations made in the comprehensive 
assessment and also respond to all recommendations made by the 
GAO in previous reports about the TWIC program.
(d) Comptroller General Review.--
    This subsection requires the GAO to review the corrective 
action plan and report to the appropriate Congressional 
Committees the extent the plan addresses the third party 
security assessment recommendations and previous GAO 
recommendations.
    The Committee believes it is important for this additional 
layer of GAO review as this assessment comes at the behest of a 
significant GAO recommendation.
(e) Transportation Security Card Reader Rule.--
    This subsection prohibits the Department from beginning any 
new rulemaking requiring transportation security card readers 
beyond the currently proposed rule, until the GAO reports to 
the appropriate Congressional Committees that the corrective 
action plan was responsive to the third party security 
assessment recommendations, and the Secretary issues updated 
list of card readers that are compatible with transportation 
security cards.
    The Committee has been critical of the Department's delay 
in issuing a final rule for the use of card readers at MTSA 
regulated vessels and facilities and, at this time, the 
Committee believes that the current card reader rule should 
move forward. The Committee directs DHS to incorporate the 
results of this comprehensive assessment into any additional 
rule making or changes to existing rules.
(f) Comptroller General Oversight.--
    This subsection would require the GAO to conduct a review 
of the corrective action plan every six months for a period of 
three years.
    The GAO first issued a report raising concerns about the 
TWIC program in December 2004. Since then, the GAO has issued 
at least seven reports identifying flaws in the program and a 
number of recommendations to address those flaws. The Committee 
feels strongly that continued GAO review of the TWIC program 
will compliment Congressional oversight of this program going 
forward. The effectiveness assessment, coupled with continued 
reports from the GAO, will better inform the Committee on the 
need for the TWIC program and provide the background necessary 
to make future changes to this troubled program.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    As reported, H.R. 3202 makes no changes to existing law.

                        COMMITTEE CORRESPONDENCE

        Committee on Transportation and Infrastructure, 
            House of Representatives,
                                      Washington, DC, July 8, 2014.
Hon. Michael T. McCaul,
Chairman, Committee on Homeland Security,
Washington, DC.
    Dear Mr. Chairman: I write concerning H.R. 3202, the 
Essential Transportation Worker Identification Credential 
Assessment Act, as ordered reported, with amendment, by the 
Committee on Homeland Security on June 11, 2014. This 
legislation includes matters that fall within the Rule X 
jurisdiction of the Committee on Transportation and 
Infrastructure.
    In order to expedite floor consideration of H.R. 3202, the 
Committee on Transportation and Infrastructure will forgo 
action on this bill. However, this is conditional on our mutual 
understanding that forgoing consideration of the bill does not 
prejudice the Committee with respect to the appointment of 
conferees or to any future jurisdictional claim over the 
subject matters contained in the bill or similar legislation 
that fall within the Committee's Rule X jurisdiction. I request 
you urge the Speaker to name members of the Committee to any 
conference committee named to consider such provisions.
    Please place a copy of this letter and your response 
acknowledging our jurisdictional interest into the committee 
report on H.R. 3202 and into the Congressional Record during 
consideration of the measure on the House floor.
            Sincerely,
                                              Bill Shuster,
                                                          Chairman.
                              ----------                              

                          House of Representatives,
                            Committee on Homeland Security,
                                      Washington, DC, July 8, 2014.
Hon. Bill Shuster,
Chairman, Committee on Transportation and Infrastructure,
Washington, DC.
    Dear Chairman Shuster: Thank you for your letter regarding 
the Committee on Transportation and Infrastructure's 
jurisdictional interest in H.R. 3202, the ``Essential 
Transportation Worker Identification Credential Assessment 
Act.''
    I agree that the Committee on Transportation and 
Infrastructure has a jurisdictional interest in the United 
States Coast Guard, and that the Committee's jurisdiction will 
not be adversely affected by your decision to forego 
consideration of H.R. 3202. Additionally, I will support your 
request for an appropriate appointment of outside conferees 
from your Committee in the event of a House-Senate conference 
on this or similar legislation, should such a conference be 
convened.
    Finally, I will include a copy of your letter and this 
response in the report accompanying H.R. 3202 and in the 
Congressional Record during consideration of this bill on the 
Floor. Thank you again for your cooperation.
            Sincerely,
                                         Michael T. McCaul,
                                                          Chairman.

                                  
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