49–006 

109TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 109–711 

SAFE PORT ACT 

SEPTEMBER 29, 2006.—Ordered to be printed 

Mr. KING of New York, from the committee of conference, 

submitted the following 

CONFERENCE REPORT 

[To accompany H.R. 4954] 

The committee of conference on the disagreeing votes of the two 

Houses on the amendment of the Senate to the bill (H.R. 4954), to 

improve maritime and cargo security through enhanced layered defenses, and for other purposes, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows: 

That the House recede from its disagreement to the amendment 

of the Senate and agree to the same with an amendment as follows: 

In lieu of the matter proposed to be inserted by the Senate 

amendment, insert the following: 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Security and 

Accountability For Every Port Act of 2006’’ or the ‘‘SAFE Port Act’’. 

(b) TABLE OF CONTENTS.—The table of contents for this Act is 

as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

TITLE I—SECURITY OF UNITED STATES SEAPORTS 

Subtitle A—General Provisions 

Sec. 101. Area Maritime Transportation Security Plan to include salvage response 

plan. 

Sec. 102. Requirements relating to maritime facility security plans. 

Sec. 103. Unannounced inspections of maritime facilities. 

Sec. 104. Transportation security card. 

Sec. 105. Study to identify redundant background records checks. 

Sec. 106. Prohibition of issuance of transportation security cards to persons convicted of certain felonies. 

Sec. 107. Long-range vessel tracking. 

Sec. 108. Establishment of interagency operational centers for port security. 


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Sec. 109. Notice of arrival for foreign vessels on the Outer Continental Shelf. 

Sec. 110. Enhanced crewmember identification. 

Subtitle B—Port Security Grants; Training and Exercise Programs 

Sec. 111. Risk assessment tool. 

Sec. 112. Port security grants. 

Sec. 113. Port Security Training Program. 

Sec. 114. Port Security Exercise Program. 

Sec. 115. Facility exercise requirements. 

Subtitle C—Port Operations 

Sec. 121. Domestic radiation detection and imaging. 

Sec. 122. Inspection of car ferries entering from abroad. 

Sec. 123. Random searches of containers. 

Sec. 124. Work stoppages and employee-employer disputes. 

Sec. 125. Threat assessment screening of port truck drivers. 

Sec. 126. Border Patrol unit for United States Virgin Islands. 

Sec. 127. Report on arrival and departure manifests for certain commercial vessels 

in the United States Virgin Islands. 

Sec. 128. Center of Excellence for Maritime Domain Awareness. 

TITLE II—SECURITY OF THE INTERNATIONAL SUPPLY CHAIN 

Subtitle A—General Provisions 

Sec. 201. Strategic plan to enhance the security of the international supply chain. 

Sec. 202. Post-incident resumption of trade. 

Sec. 203. Automated Targeting System. 

Sec. 204. Container security standards and procedures. 

Sec. 205. Container Security Initiative. 

Subtitle B—Customs–Trade Partnership Against Terrorism 

Sec. 211. Establishment. 

Sec. 212. Eligible entities. 

Sec. 213. Minimum requirements. 

Sec. 214. Tier 1 participants in C–TPAT. 

Sec. 215. Tier 2 participants in C–TPAT. 

Sec. 216. Tier 3 participants in C–TPAT. 

Sec. 217. Consequences for lack of compliance. 

Sec. 218. Third party validations. 

Sec. 219. Revalidation. 

Sec. 220. Noncontainerized cargo. 

Sec. 221. C–TPAT program management. 

Sec. 222. Additional personnel. 

Sec. 223. Authorization of appropriations. 

Subtitle C—Miscellaneous Provisions 

Sec. 231. Pilot integrated scanning system. 

Sec. 232. Screening and scanning of cargo containers. 

Sec. 233. International cooperation and coordination. 

Sec. 234. Foreign port assessments. 

Sec. 235. Pilot program to improve the security of empty containers. 

Sec. 236. Information sharing relating to supply chain security cooperation. 

TITLE III—ADMINISTRATION 

Sec. 301. Office of Cargo Security Policy. 

Sec. 302. Reauthorization of Homeland Security Science and Technology Advisory 

Committee. 

Sec. 303. Research, development, test, and evaluation efforts in furtherance of maritime and cargo security. 

TITLE IV—AGENCY RESOURCES AND OVERSIGHT 

Sec. 401. Trade and customs revenue functions of the department. 

Sec. 402. Office of international trade; oversight. 

Sec. 403. Resources. 

Sec. 404. Negotiations. 

Sec. 405. International Trade Data System. 

Sec. 406. In-bond cargo. 

Sec. 407. Sense of the Senate. 


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TITLE V—DOMESTIC NUCLEAR DETECTION OFFICE 

Sec. 501. Establishment of Domestic Nuclear Detection Office. 

Sec. 502. Technology research and development investment strategy for nuclear and 

radiological detection. 

TITLE VI—COMMERCIAL MOBILE SERVICE ALERTS 

Sec. 601. Short title. 

Sec. 602. Federal Communications Commission duties. 

Sec. 603. Commercial Mobile Service Alert Advisory Committee. 

Sec. 604. Research and development. 

Sec. 605. Grant program for remote community alert systems. 

Sec. 606. Funding. 

Sec. 607. Essential services disaster assistance. 

Sec. 608. Community disaster loans. 

Sec. 609. Public facilities. 

Sec. 610. Expedited payments. 

Sec. 611. Use of local contracting. 

Sec. 612. FEMA programs. 

Sec. 613. Homeland security definition. 

TITLE VII—OTHER MATTERS 

Sec. 701. Security plan for essential air service and small community airports. 

Sec. 702. Disclosures regarding homeland security grants. 

Sec. 703. Trucking security. 

Sec. 704. Air and Marine Operations of the Northern Border Air Wing. 

Sec. 705. Phaseout of vessels supporting oil and gas development. 

Sec. 706. Coast Guard property in Portland, Maine. 

Sec. 707. Methamphetamine and methamphetamine precursor chemicals. 

Sec. 708. Aircraft charter customer and lessee prescreening program. 

Sec. 709. Protection of health and safety during disasters. 

TITLE VIII—UNLAWFUL INTERNET GAMBLING ENFORCEMENT 

Sec. 801. Short title. 

Sec. 802. Prohibition on acceptance of any payment instrument for unlawful Internet gambling. 

Sec. 803. Internet gambling in or through foreign jurisdictions. 

SEC. 2. DEFINITIONS. 

In this Act: 

(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—Except as 

otherwise provided, the term ‘‘appropriate congressional committees’’ means—

(A) the Committee on Appropriations of the Senate; 

(B) the Committee on Commerce, Science, and Transportation of the Senate; 

(C) the Committee on Finance of the Senate; 

(D) the Committee on Homeland Security and Governmental Affairs of the Senate; 

(E) the Committee on Appropriations of the House of 

Representatives; 

(F) the Committee on Homeland Security of the House 

of Representatives; 

(G) the Committee on Transportation and Infrastructure of the House of Representatives; 

(H) the Committee on Ways and Means of the House of 

Representatives; and 

(I) other congressional committees, as appropriate. 

(2) COMMERCIAL OPERATIONS ADVISORY COMMITTEE.—The 

term ‘‘Commercial Operations Advisory Committee’’ means the 

Advisory Committee established pursuant to section 9503(c) of 

the Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 2071 

note) or any successor committee. 


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(3) COMMERCIAL SEAPORT PERSONNEL.—The term ‘‘commercial seaport personnel’’ includes any person engaged in an activity relating to the loading or unloading of cargo or passengers, 

the movement or tracking of cargo, the maintenance and repair 

of intermodal equipment, the operation of cargo-related equipment (whether or not integral to the vessel), and the handling 

of mooring lines on the dock when a vessel is made fast or let 

go in the United States. 

(4) COMMISSIONER.—The term ‘‘Commissioner’’ means the 

Commissioner responsible for the United States Customs and 

Border Protection of the Department of Homeland Security. 

(5) CONTAINER.—The term ‘‘container’’ has the meaning 

given the term in the International Convention for Safe Containers, with annexes, done at Geneva, December 2, 1972 (29 

UST 3707). 

(6) CONTAINER SECURITY DEVICE.—The term ‘‘container security device’’ means a device, or system, designed, at a minimum, to identify positively a container, to detect and record the 

unauthorized intrusion of a container, and to secure a container 

against tampering throughout the supply chain. Such a device, 

or system, shall have a low false alarm rate as determined by 

the Secretary. 

(7) DEPARTMENT.—The term ‘‘Department’’ means the Department of Homeland Security. 

(8) EXAMINATION.—The term ‘‘examination’’ means an inspection of cargo to detect the presence of misdeclared, restricted, or prohibited items that utilizes nonintrusive imaging 

and detection technology. 

(9) INSPECTION.—The term ‘‘inspection’’ means the comprehensive process used by the United States Customs and Border Protection to assess goods entering the United States to appraise them for duty purposes, to detect the presence of restricted or prohibited items, and to ensure compliance with all 

applicable laws. The process may include screening, conducting 

an examination, or conducting a search. 

(10) INTERNATIONAL SUPPLY CHAIN.—The term ‘‘international supply chain’’ means the end-to-end process for shipping goods to or from the United States beginning at the point 

of origin (including manufacturer, supplier, or vendor) through 

a point of distribution to the destination. 

(11) RADIATION DETECTION EQUIPMENT.—The term ‘‘radiation detection equipment’’ means any technology that is capable of detecting or identifying nuclear and radiological material 

or nuclear and radiological explosive devices. 

(12) SCAN.—The term ‘‘scan’’ means utilizing nonintrusive 

imaging equipment, radiation detection equipment, or both, to 

capture data, including images of a container. 

(13) SCREENING.—The term ‘‘screening’’ means a visual or 

automated review of information about goods, including manifest or entry documentation accompanying a shipment being imported into the United States, to determine the presence of 

misdeclared, restricted, or prohibited items and assess the level 

of threat posed by such cargo. 

(14) SEARCH.—The term ‘‘search’’ means an intrusive examination in which a container is opened and its contents are 


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devanned and visually inspected for the presence of 

misdeclared, restricted, or prohibited items. 

(15) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Homeland Security. 

(16) TRANSPORTATION DISRUPTION.—The term ‘‘transportation disruption’’ means any significant delay, interruption, or 

stoppage in the flow of trade caused by a natural disaster, 

heightened threat level, an act of terrorism, or any transportation security incident (as defined in section 70101(6) of title 

46, United States Code). 

(17) TRANSPORTATION SECURITY INCIDENT.—The term ‘‘transportation security incident’’ has the meaning given the 

term in section 70101(6) of title 46, United States Code. 

TITLE I—SECURITY OF UNITED STATES SEAPORTS 

Subtitle A—General Provisions 

SEC. 101. AREA MARITIME TRANSPORTATION SECURITY PLAN TO INCLUDE SALVAGE RESPONSE PLAN. 

Section 70103(b)(2) of title 46, United States Code, is amended— (1) in subparagraph (E), by striking ‘‘and’’ after the semicolon; 

(2) by redesignating subparagraph (F) as subparagraph 

(G); and 

(3) by inserting after subparagraph (E) the following: 

‘‘(F) include a salvage response plan— ‘‘(i) to identify salvage equipment capable of restoring 

operational trade capacity; and ‘‘(ii) to ensure that the waterways are cleared and the 

flow of commerce through United States ports is reestablished as efficiently and quickly as possible after a maritime transportation security incident; and’’. 

SEC. 102. REQUIREMENTS RELATING TO MARITIME FACILITY SECURITY PLANS. 

Section 70103(c) of title 46, United States Code, is amended—

(1) in paragraph (3)—

(A) in subparagraph (C)(ii), by striking ‘‘facility’’ and 

inserting ‘‘facility, including access by persons engaged in 

the surface transportation of intermodal containers in or 

out of a port facility’’; 

(B) in subparagraph (F), by striking ‘‘and’’ at the end; 

(C) in subparagraph (G), by striking the period at the 

end and inserting ‘‘; and’’; and 

(D) by adding at the end the following: 

‘‘(H) in the case of a security plan for a facility, be resubmitted for approval of each change in the ownership or operator 

of the facility that may substantially affect the security of the 

facility.’’; and 

(2) by adding at the end the following: 

‘‘(8)(A) The Secretary shall require that the qualified individual 

having full authority to implement security actions for a facility described in paragraph (2) shall be a citizen of the United States. 

‘‘(B) The Secretary may waive the requirement of subparagraph 

(A) with respect to an individual if the Secretary determines that it 


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is appropriate to do so based on a complete background check of the 

individual and a review of all terrorist watch lists to ensure that 

the individual is not identified on any such terrorist watch list.’’. 

SEC. 103. UNANNOUNCED INSPECTIONS OF MARITIME FACILITIES. 

Section 70103(c)(4)(D) of title 46, United States Code, is amended to read as follows: 

‘‘(D) subject to the availability of appropriations, verify the 

effectiveness of each such facility security plan periodically, but 

not less than 2 times per year, at least 1 of which shall be an 

inspection of the facility that is conducted without notice to the 

facility.’’. 

SEC. 104. TRANSPORTATION SECURITY CARD. 

(a) IN GENERAL.—Section 70105 of title 46, United States Code, 

is amended by adding at the end the following: 

‘‘(g) APPLICATIONS FOR MERCHANT MARINERS’ DOCUMENTS.—

The Assistant Secretary of Homeland Security for the Transportation Security Administration and the Commandant of the Coast 

Guard shall concurrently process an application from an individual 

for merchant mariner’s documents under chapter 73 of title 46, 

United States Code, and an application from that individual for a 

transportation security card under this section. 

‘‘(h) FEES.—The Secretary shall ensure that the fees charged 

each individual applying for a transportation security card under 

this section who has passed a background check under section 

5103a(d) of title 49, United States Code, and who has a current 

hazardous materials endorsement in accordance with section 1572 

of title 49, Code of Federal Regulations, and each individual with 

a current merchant mariners’ document who has passed a criminal 

background check under section 7302(d)—

‘‘(1) are for costs associated with the issuance, production, 

and management of the transportation security card, as determined by the Secretary; and 

‘‘(2) do not include costs associated with performing a background check for that individual, except for any incremental 

costs in the event that the scope of such background checks diverge. 

‘‘(i) IMPLEMENTATION SCHEDULE.—In implementing the transportation security card program under this section, the Secretary 

shall—

‘‘(1) establish a priority for each United States port based 

on risk, including vulnerabilities assessed under section 70102; 

and 

‘‘(2) implement the program, based upon such risk and 

other factors as determined by the Secretary, at all facilities 

regulated under this chapter at—

‘‘(A) the 10 United States ports that the Secretary designates top priority not later than July 1, 2007; 

‘‘(B) the 40 United States ports that are next in order 

of priority to the ports described in subparagraph (A) not 

later than January 1, 2008; and 

‘‘(C) all other United States ports not later than January 1, 2009. 

‘‘(j) TRANSPORTATION SECURITY CARD PROCESSING DEADLINE.—

Not later than January 1, 2009, the Secretary shall process and 


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issue or deny each application for a transportation security card 

under this section for individuals with current and valid merchant 

mariners’ documents on the date of the enactment of the SAFE Port 

Act. ‘‘(k) DEPLOYMENT OF TRANSPORTATION SECURITY CARD READ- ERS.— ‘‘(1) PILOT PROGRAM.— ‘‘(A) IN GENERAL.—The Secretary shall conduct a pilot 

program to test the business processes, technology, and 

operational impacts required to deploy transportation security card readers at secure areas of the marine transportation system. ‘‘(B) GEOGRAPHIC LOCATIONS.—The pilot program shall 

take place at not fewer than 5 distinct geographic locations, 

to include vessels and facilities in a variety of environmental settings. 

‘‘(C) COMMENCEMENT.—The pilot program shall commence not later than 180 days after the date of the enactment of the SAFE Port Act. 

‘‘(2) CORRELATION WITH TRANSPORTATION SECURITY

CARDS.—

‘‘(A) IN GENERAL.—The pilot program described in 

paragraph (1) shall be conducted concurrently with the 

issuance of the transportation security cards described in 

subsection (b) to ensure card and card reader interoperability. ‘‘(B) FEE.—An individual charged a fee for a transportation security card issued under this section may not be 

charged an additional fee if the Secretary determines different transportation security cards are needed based on the 

results of the pilot program described in paragraph (1) or 

for other reasons related to the technology requirements for 

the transportation security card program. 

‘‘(3) REGULATIONS.—Not later than 2 years after the commencement of the pilot program under paragraph (1)(C), the 

Secretary, after a notice and comment period that includes at 

least 1 public hearing, shall promulgate final regulations that 

require the deployment of transportation security card readers 

that are consistent with the findings of the pilot program and 

build upon the regulations prescribed under subsection (a). 

‘‘(4) REPORT.—Not later than 120 days before the promulgation of regulations under paragraph (3), the Secretary shall 

submit a comprehensive report to the appropriate congressional 

committees (as defined in section 2(1) of SAFE Port Act) that 

includes—

‘‘(A) the findings of the pilot program with respect to 

technical and operational impacts of implementing a transportation security card reader system; 

‘‘(B) any actions that may be necessary to ensure that 

all vessels and facilities to which this section applies are 

able to comply with such regulations; and ‘‘(C) an analysis of the viability of equipment under the 

extreme weather conditions of the marine environment. ‘‘(l) PROGRESS REPORTS.—Not later than 6 months after the 

date of the enactment of the SAFE Port Act, and every 6 months 


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thereafter until the requirements under this section are fully implemented, the Secretary shall submit a report on progress being made 

in implementing such requirements to the appropriate congressional 

committees (as defined in section 2(1) of the SAFE Port Act). 

‘‘(m) LIMITATION.—The Secretary may not require the placement 

of an electronic reader for transportation security cards on a vessel 

unless—

‘‘(1) the vessel has more individuals on the crew that are required to have a transportation security card than the number 

the Secretary determines, by regulation issued under subsection 

(k)(3), warrants such a reader; or 

‘‘(2) the Secretary determines that the vessel is at risk of a 

severe transportation security incident.’’. 

(b) CLARIFICATION OF ELIGIBILITY FOR TRANSPORTATION SECURITY CARDS.—Section 70105 of title 46, United States Code, is 

amended—

(1) in subsection (b)(2)—

(A) in subparagraph (E), by striking ‘‘and’’ at the end; 

(B) in subparagraph (F), by striking the period at the 

end and inserting ‘‘; and’’; and 

(C) by adding at the end the following: 

‘‘(G) other individuals as determined appropriate by 

the Secretary including individuals employed at a port not 

otherwise covered by this subsection.’’; and 

(2) in subsection (c)(2), by inserting ‘‘subparagraph (A), (B), 

or (D)’’ before ‘‘paragraph (1)’’. 

(c) DEADLINE FOR SECTION 70105 REGULATIONS.—Not later 

than January 1, 2007, the Secretary shall promulgate final regulations implementing the requirements for issuing transportation security cards under section 70105 of title 46, United States Code. The 

regulations shall include a background check process to enable 

newly hired workers to begin working unless the Secretary makes 

an initial determination that the worker poses a security risk. Such 

process shall include a check against the consolidated and integrated terrorist watch list maintained by the Federal Government. 

SEC. 105. STUDY TO IDENTIFY REDUNDANT BACKGROUND RECORDS 

CHECKS. 

(a) STUDY.—The Comptroller General of the United States shall 

conduct a study of background records checks carried out for the 

Department that are similar to the background records check required under section 5103a of title 49, United States Code, to identify redundancies and inefficiencies in connection with such checks. 

(b) REPORT.—Not later than 6 months after the date of the enactment of this Act, the Comptroller General of the United States 

shall submit a report to Congress on the results of the study, including—

(1) an identification of redundancies and inefficiencies referred to in subsection (a); and 

(2) recommendations for eliminating such redundancies 

and inefficiencies. 

SEC. 106. PROHIBITION OF ISSUANCE OF TRANSPORTATION SECURITY 

CARDS TO PERSONS CONVICTED OF CERTAIN FELONIES. 

The Secretary, in issuing a final rule pursuant to section 70105 

of title 46, United States Code, shall provide for the disqualification 


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of individuals who have been found guilty or have been found not 

guilty by reason of insanity of a felony, involving—

(1) treason, or conspiracy to commit treason; 

(2) espionage, or conspiracy to commit espionage; 

(3) sedition, or conspiracy to commit sedition; or 

(4) a crime listed in chapter 113B of title 18, United States 

Code, a comparable State law, or conspiracy to commit such 

crime. 

SEC. 107. LONG-RANGE VESSEL TRACKING. 

(a) REGULATIONS.—Section 70115 of title 46, United States 

Code, is amended in the first sentence by striking ‘‘The Secretary’’

and inserting ‘‘Not later than April 1, 2007, the Secretary’’. 

(b) VOLUNTARY PROGRAM.—The Secretary may issue regulations 

to establish a voluntary long-range automated vessel tracking system for vessels described in section 70115 of title 46, United States 

Code, during the period before regulations are issued under such 

section. 

SEC. 108. ESTABLISHMENT OF INTERAGENCY OPERATIONAL CENTERS 

FOR PORT SECURITY. 

(a) IN GENERAL.—Chapter 701 of title 46, United States Code, 

is amended by inserting after section 70107 the following: 

‘‘§ 70107A. Interagency operational centers for port security 

‘‘(a) IN GENERAL.—The Secretary shall establish interagency 

operational centers for port security at all high-priority ports not 

later than 3 years after the date of the enactment of the SAFE Port 

Act. 

‘‘(b) CHARACTERISTICS.—The interagency operational centers established under this section shall—

‘‘(1) utilize, as appropriate, the compositional and operational characteristics of existing centers, including—

‘‘(A) the pilot project interagency operational centers for 

port security in Miami, Florida; Norfolk/Hampton Roads, 

Virginia; Charleston, South Carolina; and San Diego, California; and 

‘‘(B) the virtual operation center of the Port of New 

York and New Jersey; 

‘‘(2) be organized to fit the security needs, requirements, 

and resources of the individual port area at which each is operating; 

‘‘(3) in addition to the Coast Guard, provide, as the Secretary determines appropriate, for participation by representatives of the United States Customs and Border Protection, the 

United States Immigration and Customs Enforcement, the 

Transportation Security Administration, the Department of 

Justice, the Department of Defense, and other Federal agencies, 

State and local law enforcement or port security personnel, 

members of the Area Maritime Security Committee, and other 

public and private sector stakeholders adversely affected by a 

transportation security incident or transportation disruption; 

and 

‘‘(4) be incorporated in the implementation and administration of—


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‘‘(A) maritime transportation security plans developed 

under section 70103; 

‘‘(B) maritime intelligence activities under section 

70113 and information sharing activities consistent with 

section 1016 of the National Security Intelligence Reform 

Act of 2004 (6 U.S.C. 485) and the Homeland Security Information Sharing Act (6 U.S.C. 481 et seq.); 

‘‘(C) short- and long-range vessel tracking under sections 70114 and 70115; 

‘‘(D) protocols under section 201(b)(10) of the SAFE 

Port Act; 

‘‘(E) the transportation security incident response plans 

required by section 70104; and 

‘‘(F) other activities, as determined by the Secretary. 

‘‘(c) SECURITY CLEARANCES.—The Secretary shall sponsor and 

expedite individuals participating in interagency operational centers 

in gaining or maintaining their security clearances. Through the 

Captain of the Port, the Secretary may identify key individuals who 

should participate. The port or other entities may appeal to the Captain of the Port for sponsorship. 

‘‘(d) SECURITY INCIDENTS.—During a transportation security incident on or adjacent to waters subject to the jurisdiction of the 

United States, the Coast Guard Captain of the Port designated by 

the Commandant of the Coast Guard in a maritime security command center described in subsection (a) shall act as the incident 

commander, unless otherwise directed by the President. 

‘‘(e) RULE OF CONSTRUCTION.—Nothing in this section shall be 

construed to affect the normal command and control procedures for 

operational entities in the Department, unless so directed by the Secretary. 

‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated $60,000,000 for each of the fiscal years 2007 

through 2012 to carry out this section.’’. 

(b) REPORT REQUIREMENT.—Nothing in this section or the 

amendments made by this section relieves the Commandant of the 

Coast Guard from complying with the requirements of section 807 

of the Coast Guard and Maritime Transportation Act of 2004 (Public Law 108–293; 118 Stat. 1082). The Commandant shall utilize 

the information developed in making the report required by that section in carrying out the requirements of this section. 

(c) BUDGET AND COST-SHARING ANALYSIS.—Not later than 180 

days after the date of the enactment of this Act, the Secretary of the 

department in which the Coast Guard is operating shall submit to 

the appropriate congressional committees a proposed budget analysis for implementing section 70107A of title 46, United States 

Code, as added by subsection (a), including cost-sharing arrangements with other Federal departments and agencies involved in the 

interagency operation of the centers to be established under such 

section. 

(d) CLERICAL AMENDMENT.—The chapter analysis for chapter 

701 of title 46, United States Code, is amended by inserting after 

the item relating to section 70107 the following: 

‘‘70107A. Interagency operational centers for port security’’. 


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SEC. 109. NOTICE OF ARRIVAL FOR FOREIGN VESSELS ON THE OUTER 

CONTINENTAL SHELF. 

(a) NOTICE OF ARRIVAL.—Not later than 180 days after the date 

of the enactment of this Act, the Secretary of the department in 

which the Coast Guard is operating shall update and finalize the 

rulemaking on notice of arrival for foreign vessels on the Outer Continental Shelf. 

(b) CONTENT OF REGULATIONS.—The regulations promulgated 

pursuant to subsection (a) shall be consistent with information required under the Notice of Arrival under section 160.206 of title 33, 

Code of Federal Regulations, as in effect on the date of the enactment of this Act. 

SEC. 110. ENHANCED CREWMEMBER IDENTIFICATION. 

Section 70111 of title 46, United States Code, is amended—

(1) in subsection (a) by striking ‘‘The’’ and inserting ‘‘Not 

later than 1 year after the date of enactment of the SAFE Port 

Act, the’’; and 

(2) in subsection (b) by striking ‘‘The’’ and inserting ‘‘Not 

later than 1 year after the date of enactment of the SAFE Port 

Act, the’’. 

Subtitle B—Port Security Grants; Training and Exercise 

Programs 

SEC. 111. RISK ASSESSMENT TOOL. 

In updating Area Maritime Security Plans required under section 70103(b)(2)(F) of title 46, United States Code, and in applying 

for grants under section 70107 of such title, the Secretary of the Department in which the Coast Guard is operating shall make available, and Area Maritime Security Committees may use a risk assessment tool that uses standardized risk criteria, such as the Maritime Security Risk Assessment Tool used by the Coast Guard. 

SEC. 112. PORT SECURITY GRANTS. 

(a) BASIS FOR GRANTS.—Section 70107(a) of title 46, United 

States Code, is amended by striking ‘‘for making a fair and equitable allocation of funds’’ and inserting ‘‘for the allocation of funds 

based on risk’’. 

(b) ELIGIBLE USES.—Section 70107(b) of title 46, United States 

Code, is amended—

(1) in paragraph (2), by inserting after ‘‘crewmembers.’’ the 

following: ‘‘Grants awarded under this section may not be used 

to construct buildings or other physical facilities, except those 

which are constructed under terms and conditions consistent 

with the requirements under section 611(j)(8) of the Robert T. 

Stafford Disaster Relief and Emergency Assistance Act (42 

U.S.C. 5121(j)(8)), including those facilities in support of this 

paragraph, and specifically approved by the Secretary. Costs eligible for funding under this paragraph may not exceed the 

greater of—

‘‘(A) $1,000,000 per project; or 

‘‘(B) such greater amount as may be approved by the 

Secretary, which may not exceed 10 percent of the total 

amount of the grant.’’; and 

(2) by adding at the end the following: 


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‘‘(5) The cost of conducting exercises or training for prevention and detection of, preparedness for, response to, or recovery 

from terrorist attacks. ‘‘(6) The cost of establishing or enhancing mechanisms for 

sharing terrorism threat information and ensuring that the 

mechanisms are interoperable with Federal, State, and local 

agencies. ‘‘(7) The cost of equipment (including software) required to 

receive, transmit, handle, and store classified information.’’. (c) MULTIPLE-YEAR PROJECTS, ETC.—Section 70107 of title 46, 

United States Code, is amended— (1) by redesignating subsections (e), (f), (g), (h), and (i) as 

subsections (i), (j), (k), (l), and (m), respectively, and by inserting after subsection (d) the following: 

‘‘(e) MULTIPLE-YEAR PROJECTS.— ‘‘(1) LETTERS OF INTENT.—The Secretary may execute letters 

of intent to commit funding to such authorities, operators, and 

agencies. ‘‘(2) LIMITATION.—Not more than 20 percent of the grant 

funds awarded under this subsection in any fiscal year may be 

awarded for projects that span multiple years. 

‘‘(f) CONSISTENCY WITH PLANS.—The Secretary shall ensure 

that each grant awarded under subsection (e)— ‘‘(1) is used to supplement and support, in a consistent and 

coordinated manner, the applicable Area Maritime Transportation Security Plan; and ‘‘(2) is coordinated with any applicable State or Urban Area 

Homeland Security Plan. 

‘‘(g) APPLICATIONS.—Any entity subject to an Area Maritime 

Transportation Security Plan may submit an application for a 

grant under this section, at such time, in such form, and containing 

such information and assurances as the Secretary may require. ‘‘(h) REPORTS.—Not later than 180 days after the date of the enactment of the SAFE Port Act, the Secretary, acting through the 

Commandant of the Coast Guard, shall submit a report to Congress, in a secure format, describing the methodology used to allocate port security grant funds on the basis of risk.’’; and 

(2) in subsection (i)(1), as redesignated, by striking ‘‘program’’ and inserting ‘‘Secretary’’. (d) AUTHORIZATION OF APPROPRIATIONS.—Section 70107(l) of 

title 46, United States Code, as redesignated, is amended to read as 

follows: 

‘‘(l) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated $400,000,000 for each of the fiscal years 2007 

through 2011 to carry out this section.’’. 

(e) BASIS FOR GRANTS.—Section 70107(a) of title 46, United 

States Code, is amended by striking ‘‘national economic and strategic defense concerns’’ and inserting ‘‘national economic, energy, 

and strategic defense concerns based upon the most current risk assessments available’’. 

SEC. 113. PORT SECURITY TRAINING PROGRAM. 

(a) IN GENERAL.—The Secretary, acting through the Under Secretary for Preparedness and in coordination with the Commandant 

of the Coast Guard, shall establish a Port Security Training Program (referred to in this section as the ‘‘Training Program’’) for the 


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purpose of enhancing the capabilities of each facility required to 

submit a plan under section 70103(c) of title 46, United States 

Code, to prevent, prepare for, respond to, mitigate against, and recover from threatened or actual acts of terrorism, natural disasters, 

and other emergencies. 

(b) REQUIREMENTS.—The Training Program shall provide validated training that—

(1) reaches multiple disciplines, including Federal, State, 

and local government officials, commercial seaport personnel 

and management, and governmental and nongovernmental 

emergency response providers; 

(2) provides training at the awareness, performance, and 

management and planning levels; 

(3) utilizes multiple training mediums and methods; 

(4) addresses port security topics, including—

(A) facility security plans and procedures, including 

how security plans and procedures are adjusted when 

threat levels increase; 

(B) facility security force operations and management; 

(C) physical security and access control at facilities; 

(D) methods of security for preventing and countering 

cargo theft; 

(E) container security; 

(F) recognition and detection of weapons, dangerous 

substances, and devices; 

(G) operation and maintenance of security equipment 

and systems; 

(H) security threats and patterns; 

(I) security incident procedures, including procedures 

for communicating with governmental and nongovernmental emergency response providers; and 

(J) evacuation procedures; 

(5) is consistent with, and supports implementation of, the 

National Incident Management System, the National Response 

Plan, the National Infrastructure Protection Plan, the National 

Preparedness Guidance, the National Preparedness Goal, the 

National Maritime Transportation Security Plan, and other 

such national initiatives; 

(6) is evaluated against clear and consistent performance 

measures; 

(7) addresses security requirements under facility security 

plans; and 

(8) educates, trains, and involves individuals in neighborhoods around facilities required to submit a plan under section 

70103(c) of title 46, United States Code, on how to observe and 

report security risks. 

(c) VESSEL AND FACILITY SECURITY PLANS.—Section 70103(c)(3) 

of title 46, United States Code, is amended—

(1) by redesignating subparagraphs (F), (G), and (H) (as 

added by section 102(1)(D)) as subparagraphs (G), (H), and (I), 

respectively; and 

(2) by inserting after subparagraph (E) the following: 

‘‘(F) provide a strategy and timeline for conducting training 

and periodic unannounced drills;’’. 


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14 

(d) CONSULTATION.—The Secretary shall ensure that, in carrying out the Program, the Office of Grants and Training shall consult with commercial seaport personnel and management. 

(e) TRAINING PARTNERS.—In developing and delivering training 

under the Training Program, the Secretary, in coordination with the 

Maritime Administration of the Department of Transportation, and 

consistent with section 109 of the Maritime Transportation Security 

Act of 2002 (46 U.S.C. 70101 note), shall— (1) work with government training facilities, academic institutions, private organizations, employee organizations, and 

other entities that provide specialized, state-of-the-art training 

for governmental and nongovernmental emergency responder 

providers or commercial seaport personnel and management; 

and 

(2) utilize, as appropriate, government training facilities, 

courses provided by community colleges, public safety academies, State and private universities, and other facilities. 

SEC. 114. PORT SECURITY EXERCISE PROGRAM. 

(a) IN GENERAL.—The Secretary, acting through the Under Secretary for Preparedness and in coordination with the Commandant 

of the Coast Guard, shall establish a Port Security Exercise Program (referred to in this section as the ‘‘Exercise Program’’) for the 

purpose of testing and evaluating the capabilities of Federal, State, 

local, and foreign governments, commercial seaport personnel and 

management, governmental and nongovernmental emergency response providers, the private sector, or any other organization or entity, as the Secretary determines to be appropriate, to prevent, prepare for, mitigate against, respond to, and recover from acts of terrorism, natural disasters, and other emergencies at facilities required to submit a plan under section 70103(c) of title 46, United 

States Code. 

(b) REQUIREMENTS.—The Secretary shall ensure that the Exercise Program— (1) conducts, on a periodic basis, port security exercises at 

such facilities that are— (A) scaled and tailored to the needs of each facility; 

(B) live, in the case of the most at-risk facilities; 

(C) as realistic as practicable and based on current 

risk assessments, including credible threats, vulnerabilities, 

and consequences; 

(D) consistent with the National Incident Management 

System, the National Response Plan, the National Infrastructure Protection Plan, the National Preparedness Guidance, the National Preparedness Goal, the National Maritime Transportation Security Plan, and other such national 

initiatives; 

(E) evaluated against clear and consistent performance 

measures; 

(F) assessed to learn best practices, which shall be 

shared with appropriate Federal, State, and local officials, 

commercial seaport personnel and management, governmental and nongovernmental emergency response providers, and the private sector; and 

(G) followed by remedial action in response to lessons 

learned; and 


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(2) assists State and local governments and facilities in designing, implementing, and evaluating exercises that—

(A) conform to the requirements of paragraph (1); and 

(B) are consistent with any applicable Area Maritime 

Transportation Security Plan and State or Urban Area 

Homeland Security Plan. 

(c) IMPROVEMENT PLAN.—The Secretary shall establish a port 

security exercise improvement plan process to—

(1) identify and analyze each port security exercise for lessons learned and best practices; 

(2) disseminate lessons learned and best practices to participants in the Exercise Program; 

(3) monitor the implementation of lessons learned and best 

practices by participants in the Exercise Program; and 

(4) conduct remedial action tracking and long-term trend 

analysis. 

SEC. 115. FACILITY EXERCISE REQUIREMENTS. 

The Secretary of the Department in which the Coast Guard is 

operating shall require each high risk facility to conduct live or fullscale exercises described in section 105.220(c) of title 33, Code of 

Federal Regulations, not less frequently than once every 2 years, in 

accordance with the facility security plan required under section 

70103(c) of title 46, United States Code. 

Subtitle C—Port Operations 

SEC. 121. DOMESTIC RADIATION DETECTION AND IMAGING. 

(a) SCANNING CONTAINERS.—Subject to section 1318 of title 19, 

United States Code, not later than December 31, 2007, all containers entering the United States through the 22 ports through 

which the greatest volume of containers enter the United States by 

vessel shall be scanned for radiation. To the extent practicable, the 

Secretary shall deploy next generation radiation detection technology. 

(b) STRATEGY.—The Secretary shall develop a strategy for the 

deployment of radiation detection capabilities that includes—

(1) a risk-based prioritization of ports of entry at which radiation detection equipment will be deployed; 

(2) a proposed timeline of when radiation detection equipment will be deployed at each port of entry identified under 

paragraph (1); 

(3) the type of equipment to be used at each port of entry 

identified under paragraph (1), including the joint deployment 

and utilization of radiation detection equipment and nonintrusive imaging equipment; 

(4) standard operating procedures for examining containers 

with such equipment, including sensor alarming, networking, 

and communications and response protocols; 

(5) operator training plans; 

(6) an evaluation of the environmental health and safety 

impacts of nonintrusive imaging technology and a radiation 

risk reduction plan, in consultation with the Nuclear Regulatory Commission, the Occupational Safety and Health Administration, and the National Institute for Occupational Safety 


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16 

and Health, that seeks to minimize radiation exposure of workers and the public to levels as low as reasonably achievable; 

(7) the policy of the Department for using nonintrusive imaging equipment in tandem with radiation detection equipment; 

and 

(8) a classified annex that— (A) details plans for covert testing; and 

(B) outlines the risk-based prioritization of ports of 

entry identified under paragraph (1). 

(c) REPORT.—Not later than 90 days after the date of the enactment of this Act, the Secretary shall submit the strategy developed 

under subsection (b) to the appropriate congressional committees. 

(d) UPDATE.—Not later than 180 days after the date of the submission of the report under subsection (c), the Secretary shall provide a more complete evaluation under subsection (b)(6). 

(e) OTHER WEAPONS OF MASS DESTRUCTION THREATS.—Not 

later than 180 days after the date of the enactment of this Act, the 

Secretary shall submit to the appropriate congressional committees 

a report on the feasibility of, and a strategy for, the development of 

equipment to detect and prevent shielded nuclear and radiological 

threat material and chemical, biological, and other weapons of 

mass destruction from entering the United States. 

(f) STANDARDS.—The Secretary, acting through the Director for 

Domestic Nuclear Detection and in collaboration with the National 

Institute of Standards and Technology, shall publish technical capability standards and recommended standard operating procedures for the use of nonintrusive imaging and radiation detection 

equipment in the United States. Such standards and procedures— (1) should take into account relevant standards and procedures utilized by other Federal departments or agencies as well 

as those developed by international bodies; and 

(2) shall not be designed so as to endorse specific companies 

or create sovereignty conflicts with participating countries. 

(g) IMPLEMENTATION.—Not later than 3 years after the date of 

the enactment of this Act, the Secretary shall fully implement the 

strategy developed under subsection (b). 

(h) EXPANSION TO OTHER UNITED STATES PORTS OF ENTRY.— (1) IN GENERAL.—As soon as practicable after— (A) implementation of the program for the examination 

of containers for radiation at ports of entry described in 

subsection (a); and 

(B) submission of the strategy developed under subsection (b) (and updating, if any, of that strategy under 

subsection (c)), 

but not later than December 31, 2008, the Secretary shall expand the strategy developed under subsection (b), in a manner 

consistent with the requirements of subsection (b), to provide for 

the deployment of radiation detection capabilities at all other 

United States ports of entry not covered by the strategy developed under subsection (b). 

(2) RISK ASSESSMENT.—In expanding the strategy under 

paragraph (1), the Secretary shall identify and assess the risks 

to those other ports of entry in order to determine what equipment and practices will best mitigate the risks. 

(i) INTERMODAL RAIL RADIATION DETECTION TEST CENTER.—


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17 

(1) ESTABLISHMENT.—In accordance with subsection (b), 

and in order to comply with this section, the Secretary shall establish an Intermodal Rail Radiation Detection Test Center (referred to in this subsection as the ‘‘Test Center’’). 

(2) PROJECTS.—The Secretary shall conduct multiple, concurrent projects at the Test Center to rapidly identify and test 

concepts specific to the challenges posed by on-dock rail. 

(3) LOCATION.—The Test Center shall be located within a 

public port facility at which a majority of the containerized 

cargo is directly laden from (or unladen to) on-dock, intermodal 

rail. 

SEC. 122. INSPECTION OF CAR FERRIES ENTERING FROM ABROAD. 

Not later than 120 days after the date of the enactment of this 

Act, the Secretary, acting through the Commissioner, and in coordination with the Secretary of State and in cooperation with ferry operators and appropriate foreign government officials, shall seek to 

develop a plan for the inspection of passengers and vehicles before 

such passengers board, or such vehicles are loaded onto, a ferry 

bound for a United States facility required to submit a plan under 

section 70103(c) of title 46, United States Code. 

SEC. 123. RANDOM SEARCHES OF CONTAINERS. 

Not later than 1 year after the date of the enactment of this Act, 

the Secretary, acting through the Commissioner, shall develop and 

implement a plan, utilizing best practices for empirical scientific research design and random sampling, to conduct random searches of 

containers in addition to any targeted or preshipment inspection of 

such containers required by law or regulation or conducted under 

any other program conducted by the Secretary. Nothing in this section shall be construed to mean that implementation of the random 

sampling plan precludes additional searches of containers not inspected pursuant to the plan. 

SEC. 124. WORK STOPPAGES AND EMPLOYEE-EMPLOYER DISPUTES. 

Section 70101(6) of title 46, United States Code, is amended by 

adding at the end the following: ‘‘In this paragraph, the term ‘economic disruption’ does not include a work stoppage or other employee-related action not related to terrorism and resulting from an 

employee-employer dispute.’’. 

SEC. 125. THREAT ASSESSMENT SCREENING OF PORT TRUCK DRIVERS. 

Not later than 90 days after the date of the enactment of this 

Act, the Secretary shall implement a threat assessment screening, 

including name-based checks against terrorist watch lists and immigration status check, for all port truck drivers with access to secure areas of a port who have a commercial driver’s license but do 

not have a current and valid hazardous materials endorsement 

issued in accordance with section 1572 of title 49, Code of Federal 

Regulations, that is the same as the threat assessment screening required for facility employees and longshoremen by the Commandant 

of the Coast Guard under Coast Guard Notice USCG–2006–24189 

(Federal Register, Vol. 71, No. 82, Friday, April 28, 2006). 

SEC. 126. BORDER PATROL UNIT FOR UNITED STATES VIRGIN ISLANDS. 

(a) IN GENERAL.—The Secretary may establish at least 1 Border 

Patrol unit for the United States Virgin Islands. 


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(b) REPORT.—Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit a report to the appropriate congressional committees that includes the schedule, if any, 

for carrying out subsection (a). 

SEC. 127. REPORT ON ARRIVAL AND DEPARTURE MANIFESTS FOR CERTAIN COMMERCIAL VESSELS IN THE UNITED STATES VIRGIN ISLANDS. 

Not later than 90 days after the date of the enactment of this 

Act, the Secretary shall submit to the appropriate congressional 

committees a report on the impact of implementing the requirements 

of section 231 of the Immigration and Nationality Act (8 U.S.C. 

1221) (relating to providing United States border officers with arrival and departure manifests) with respect to commercial vessels 

that are fewer than 300 gross tons and operate exclusively between 

the territorial waters of the United States Virgin Islands and the 

territorial waters of the British Virgin Islands. 

SEC. 128. CENTER OF EXCELLENCE FOR MARITIME DOMAIN AWARENESS. 

(a) ESTABLISHMENT.—The Secretary shall establish a university-based Center for Excellence for Maritime Domain Awareness 

following the merit-review processes and procedures that have been 

established by the Secretary for selecting university program centers 

of excellence. 

(b) DUTIES.—The Center established under subsection (a) 

shall—

(1) prioritize its activities based on the ‘‘National Plan to 

Improve Maritime Domain Awareness’’ published by the Department in October 2005; 

(2) recognize the extensive previous and ongoing work and 

existing competence in the field of maritime domain awareness 

at numerous academic and research institutions, such as the 

Naval Postgraduate School; 

(3) leverage existing knowledge and continue development 

of a broad base of expertise within academia and industry in 

maritime domain awareness; and 

(4) provide educational, technical, and analytical assistance to Federal agencies with responsibilities for maritime domain awareness, including the Coast Guard, to focus on the 

need for interoperability, information sharing, and common information technology standards and architecture. 

TITLE II—SECURITY OF THE INTERNATIONAL SUPPLY 

CHAIN 

Subtitle A—General Provisions 

SEC. 201. STRATEGIC PLAN TO ENHANCE THE SECURITY OF THE 

INTERNATIONAL SUPPLY CHAIN. 

(a) STRATEGIC PLAN.—The Secretary, in consultation with appropriate Federal, State, local, and tribal government agencies and 

private sector stakeholders responsible for security matters that affect or relate to the movement of containers through the international supply chain, shall develop, implement, and update, as appropriate, a strategic plan to enhance the security of the international supply chain. 


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(b) REQUIREMENTS.—The strategic plan required under subsection (a) shall— (1) describe the roles, responsibilities, and authorities of 

Federal, State, local, and tribal government agencies and private-sector stakeholders that relate to the security of the movement of containers through the international supply chain; 

(2) identify and address gaps and unnecessary overlaps in 

the roles, responsibilities, or authorities described in paragraph 

(1); 

(3) identify and make recommendations regarding legislative, regulatory, and organizational changes necessary to improve coordination among the entities or to enhance the security 

of the international supply chain; 

(4) provide measurable goals, including objectives, mechanisms, and a schedule, for furthering the security of commercial 

operations from point of origin to point of destination; 

(5) build on available resources and consider costs and benefits; 

(6) provide incentives for additional voluntary measures to 

enhance cargo security, as recommended by the Commissioner; 

(7) consider the impact of supply chain security requirements on small- and medium-sized companies; 

(8) include a process for sharing intelligence and information with private-sector stakeholders to assist in their security 

efforts; 

(9) identify a framework for prudent and measured response in the event of a transportation security incident involving the international supply chain; 

(10) provide protocols for the expeditious resumption of the 

flow of trade in accordance with section 202; 

(11) consider the linkages between supply chain security 

and security programs within other systems of movement, including travel security and terrorism finance programs; and 

(12) expand upon and relate to existing strategies and 

plans, including the National Response Plan, the National 

Maritime Transportation Security Plan, the National Strategy 

for Maritime Security, and the 8 supporting plans of the Strategy, as required by Homeland Security Presidential Directive 

13. 

(c) CONSULTATION.—In developing protocols under subsection 

(b)(10), the Secretary shall consult with Federal, State, local, and 

private sector stakeholders, including the National Maritime Security Advisory Committee and the Commercial Operations Advisory 

Committee. 

(d) COMMUNICATION.—To the extent practicable, the strategic 

plan developed under subsection (a) shall provide for coordination 

with, and lines of communication among, appropriate Federal, 

State, local, and private-sector stakeholders on law enforcement actions, intermodal rerouting plans, and other strategic infrastructure 

issues resulting from a transportation security incident or transportation disruption. 

(e) UTILIZATION OF ADVISORY COMMITTEES.—As part of the consultations described in subsection (a), the Secretary shall, to the extent practicable, utilize the Homeland Security Advisory Committee, 

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mercial Operations Advisory Committee to review, as necessary, the 

draft strategic plan and any subsequent updates to the strategic 

plan. 

(f) INTERNATIONAL STANDARDS AND PRACTICES.—In furtherance 

of the strategic plan required under subsection (a), the Secretary is 

encouraged to consider proposed or established standards and practices of foreign governments and international organizations, including the International Maritime Organization, the World Customs Organization, the International Labor Organization, and the 

International Organization for Standardization, as appropriate, to 

establish standards and best practices for the security of containers 

moving through the international supply chain. 

(g) REPORT.—

(1) INITIAL REPORT.—Not later than 270 days after the date 

of the enactment of this Act, the Secretary shall submit to the 

appropriate congressional committees a report that contains the 

strategic plan required by subsection (a). 

(2) FINAL REPORT.—Not later than 3 years after the date on 

which the strategic plan is submitted under paragraph (1), the 

Secretary shall submit a report to the appropriate congressional 

committees that contains an update of the strategic plan. 

SEC. 202. POST-INCIDENT RESUMPTION OF TRADE. 

(a) IN GENERAL.—The Secretary shall develop and update, as 

necessary, protocols for the resumption of trade in accordance with 

section 201(b)(10) in the event of a transportation disruption or a 

transportation security incident. The protocols shall include—

(1) the identification of the appropriate initial incident 

commander, if the Commandant of the Coast Guard is not the 

appropriate person, and lead departments, agencies, or offices 

to execute such protocols; 

(2) a plan to redeploy resources and personnel, as necessary, to reestablish the flow of trade; 

(3) a plan to provide training for the periodic instruction 

of personnel of the United States Customs and Border Protection, the Coast Guard, and the Transportation Security Administration in trade resumption functions and responsibilities; 

and 

(4) appropriate factors for establishing prioritization of vessels and cargo determined by the President to be critical for response and recovery, including factors relating to public health, 

national security, and economic need. 

(b) VESSELS.—In determining the prioritization of vessels accessing facilities (as defined under section 70101 of title 46, United 

States Code), the Commandant of the Coast Guard may, to the extent practicable and consistent with the protocols and plans required under this section to ensure the safe and secure transit of 

vessels to ports in the United States after a transportation security 

incident, give priority to a vessel—

(1) that has an approved security plan under section 

70103(c) of title 46, United States Code, or a valid international 

ship security certificate, as provided under part 104 of title 33, 

Code of Federal Regulations; 

(2) that is manned by individuals who are described in section 70105(b)(2)(B) of title 46, United States Code; and 


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(3) that is operated by validated participants in the Customs-Trade Partnership Against Terrorism program. 

(c) CARGO.—In determining the prioritization of the resumption 

of the flow of cargo and consistent with the protocols established 

under this section, the Commissioner may give preference to cargo— (1) entering a port of entry directly from a foreign seaport 

designated under the Container Security Initiative; 

(2) from the supply chain of a validated C–TPAT participant and other private sector entities, as appropriate; or 

(3) that has undergone— (A) a nuclear or radiological detection scan; 

(B) an x-ray, density, or other imaging scan; and 

(C) a system to positively identify the container at the 

last port of departure prior to arrival in the United States, 

which data has been evaluated and analyzed by personnel 

of the United States Customs and Border Protection. 

(d) COORDINATION.—The Secretary shall ensure that there is 

appropriate coordination among the Commandant of the Coast 

Guard, the Commissioner, and other Federal officials following a 

maritime disruption or maritime transportation security incident in 

order to provide for the resumption of trade. 

(e) COMMUNICATION.—Consistent with section 201, the Commandant of the Coast Guard, Commissioner, and other appropriate 

Federal officials, shall promptly communicate any revised procedures or instructions intended for the private sector following a 

maritime disruption or maritime transportation security incident. 

SEC. 203. AUTOMATED TARGETING SYSTEM. 

(a) IN GENERAL.—The Secretary, acting through the Commissioner, shall— (1) identify and seek the submission of data related to the 

movement of a shipment of cargo through the international supply chain; and 

(2) analyze the data described in paragraph (1) to identify 

high-risk cargo for inspection. 

(b) REQUIREMENT.—The Secretary, acting through the Commissioner, shall require the electronic transmission to the Department 

of additional data elements for improved high-risk targeting, including appropriate security elements of entry data, as determined 

by the Secretary, to be provided as advanced information with respect to cargo destined for importation into the United States prior 

to loading of such cargo on vessels at foreign seaports. 

(c) CONSIDERATION.—The Secretary, acting through the Commissioner, shall—

(1) consider the cost, benefit, and feasibility of—

(A) requiring additional nonmanifest documentation; 

(B) reducing the time period allowed by law for revisions to a container cargo manifest; 

(C) reducing the time period allowed by law for submission of certain elements of entry data, for vessel or 

cargo; and 

(D) such other actions the Secretary considers beneficial for improving the information relied upon for the 

Automated Targeting System and any successor targeting 

system in furthering the security and integrity of the international supply chain; and 


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(2) consult with stakeholders, including the Commercial 

Operations Advisory Committee, and identify to them the need 

for such information, and the appropriate timing of its submission. 

(d) REGULATIONS.—The Secretary shall promulgate regulations 

to carry out this section. In promulgating such regulations, the Secretary shall adhere to the parameters applicable to the development 

of regulations under section 343(a) of the Trade Act of 2002 (19 

U.S.C. 2071 note), including provisions relating to consultation, 

technology, analysis, use of information, confidentiality, and timing 

requirements. 

(e) SYSTEM IMPROVEMENTS.—The Secretary, acting through the 

Commissioner, shall— (1) conduct, through an independent panel, a review of the 

effectiveness and capabilities of the Automated Targeting System; 

(2) consider future iterations of the Automated Targeting 

System, which would incorporate smart features, such as more 

complex algorithms and real-time intelligence, instead of relying solely on rule sets that are periodically updated; 

(3) ensure that the Automated Targeting System has the capability to electronically compare manifest and other available 

data for cargo entered into or bound for the United States to 

detect any significant anomalies between such data and facilitate the resolution of such anomalies; 

(4) ensure that the Automated Targeting System has the capability to electronically identify, compile, and compare select 

data elements for cargo entered into or bound for the United 

States following a maritime transportation security incident, in 

order to efficiently identify cargo for increased inspection or expeditious release; and 

(5) develop a schedule to address the recommendations of 

the Comptroller General of the United States, the Inspector 

General of the Department of the Treasury, and the Inspector 

General of the Department with respect to the operation of the 

Automated Targeting System. 

(f) SECURE TRANSMISSION OF CERTAIN INFORMATION.—All information required by the Department from supply chain partners 

shall be transmitted in a secure fashion, as determined by the Secretary, so as to protect the information from unauthorized access. 

(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to the United States Customs and Border Protection to carry out the Automated Targeting System for identifying 

high-risk oceanborne container cargo for inspection—

(1) $33,200,000 for fiscal year 2008; 

(2) $35,700,000 for fiscal year 2009; and 

(3) $37,485,000 for fiscal year 2010. 

SEC. 204. CONTAINER SECURITY STANDARDS AND PROCEDURES. 

(a) ESTABLISHMENT.—

(1) IN GENERAL.—Not later than 90 days after the date of 

the enactment of this Act, the Secretary shall initiate a rulemaking proceeding to establish minimum standards and procedures for securing containers in transit to the United States. 

(2) INTERIM RULE.—Not later than 180 days after the date 

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terim final rule pursuant to the proceeding described in paragraph (1). 

(3) MISSED DEADLINE.—If the Secretary is unable to meet 

the deadline established pursuant to paragraph (2), the Secretary shall submit a letter to the appropriate congressional 

committees explaining why the Secretary is unable to meet that 

deadline and describing what must be done before such minimum standards and procedures can be established. 

(4) DEADLINE FOR ENFORCEMENT.—Not later than 2 years 

after the date on which the standards and procedures are established pursuant to paragraph (1), all containers bound for ports 

of entry in the United States shall meet such standards and 

procedures. 

(b) REVIEW AND ENHANCEMENT.—The Secretary shall regularly 

review and enhance the standards and procedures established pursuant to subsection (a), as appropriate, based on tests of technologies as they become commercially available to detect container 

intrusion and the highest consequence threats, particularly weapons 

of mass destruction. 

(c) INTERNATIONAL CARGO SECURITY STANDARDS.—The Secretary, in consultation with the Secretary of State, the Secretary of 

Energy, and other Federal Government officials, as appropriate, 

and with the Commercial Operations Advisory Committee, the 

Homeland Security Advisory Committee, and the National Maritime 

Security Advisory Committee, is encouraged to promote and establish international standards for the security of containers moving 

through the international supply chain with foreign governments 

and international organizations, including the International Maritime Organization, the International Organization for Standardization, the International Labor Organization, and the World Customs 

Organization. 

(d) INTERNATIONAL TRADE AND OTHER OBLIGATIONS.—In carrying out this section, the Secretary shall consult with appropriate 

Federal departments and agencies and private sector stakeholders 

and ensure that actions under this section do not violate international trade obligations or other international obligations of the 

United States. 

SEC. 205. CONTAINER SECURITY INITIATIVE. 

(a) ESTABLISHMENT.—The Secretary, acting through the Commissioner, shall establish and implement a program (referred to in 

this section as the ‘‘Container Security Initiative’’ or ‘‘CSI’’) to identify and examine or search maritime containers that pose a security 

risk before loading such containers in a foreign port for shipment 

to the United States, either directly or through a foreign port. 

(b) ASSESSMENT.—The Secretary, acting through the Commissioner, may designate foreign seaports to participate in the Container Security Initiative after the Secretary has assessed the costs, 

benefits, and other factors associated with such designation, including—

(1) the level of risk for the potential compromise of containers by terrorists, or other threats as determined by the Secretary; 

(2) the volume of cargo being imported to the United States 

directly from, or being transshipped through, the foreign seaport; 


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(3) the results of the Coast Guard assessments conducted 

pursuant to section 70108 of title 46, United States Code; 

(4) the commitment of the government of the country in 

which the foreign seaport is located to cooperating with the Department in sharing critical data and risk management information and to maintain programs to ensure employee integrity; 

and 

(5) the potential for validation of security practices at the 

foreign seaport by the Department. 

(c) NOTIFICATION.—The Secretary shall notify the appropriate 

congressional committees of the designation of a foreign port under 

the Container Security Initiative or the revocation of such a designation before notifying the public of such designation or revocation. 

(d) NEGOTIATIONS.—The Secretary, in cooperation with the Secretary of State and in consultation with the United States Trade 

Representative, may enter into negotiations with the government of 

each foreign nation in which a seaport is designated under the Container Security Initiative to ensure full compliance with the requirements under the Container Security Initiative. 

(e) OVERSEAS INSPECTIONS.— (1) REQUIREMENTS AND PROCEDURES.—The Secretary 

shall— (A) establish minimum technical capability criteria 

and standard operating procedures for the use of nonintrusive inspection and nuclear and radiological detection systems in conjunction with CSI; 

(B) require each port designated under CSI to operate 

nonintrusive inspection and nuclear and radiological detection systems in accordance with the technical capability criteria and standard operating procedures established under 

subparagraph (A); 

(C) continually monitor the technologies, processes, and 

techniques used to inspect cargo at ports designated under 

CSI to ensure adherence to such criteria and the use of 

such procedures; and 

(D) consult with the Secretary of Energy in establishing 

the minimum technical capability criteria and standard operating procedures established under subparagraph (A) pertaining to radiation detection technologies to promote consistency in detection systems at foreign ports designated 

under CSI. 

(2) CONSTRAINTS.—The criteria and procedures established 

under paragraph (1)(A)—

(A) shall be consistent, as practicable, with relevant 

standards and procedures utilized by other Federal departments or agencies, or developed by international bodies if 

the United States consents to such standards and procedures; 

(B) shall not apply to activities conducted under the 

Megaports Initiative of the Department of Energy; and 

(C) shall not be designed to endorse the product or 

technology of any specific company or to conflict with the 

sovereignty of a country in which a foreign seaport designated under the Container Security Initiative is located. 


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25 

(f) SAVINGS PROVISION.—The authority of the Secretary under 

this section shall not affect any authority or duplicate any efforts or 

responsibilities of the Federal Government with respect to the deployment of radiation detection equipment outside of the United 

States. 

(g) COORDINATION.—The Secretary shall— (1) coordinate with the Secretary of Energy, as necessary, to 

provide radiation detection equipment required to support the 

Container Security Initiative through the Department of Energy’s Second Line of Defense Program and Megaports Initiative; 

or 

(2) work with the private sector or host governments, when 

possible, to obtain radiation detection equipment that meets the 

Department’s and the Department of Energy’s technical specifications for such equipment. 

(h) STAFFING.—The Secretary shall develop a human capital 

management plan to determine adequate staffing levels in the 

United States and in foreign seaports including, as appropriate, the 

remote location of personnel in countries in which foreign seaports 

are designated under the Container Security Initiative. 

(i) ANNUAL DISCUSSIONS.—The Secretary, in coordination with 

the appropriate Federal officials, shall hold annual discussions 

with foreign governments of countries in which foreign seaports designated under the Container Security Initiative are located regarding best practices, technical assistance, training needs, and technological developments that will assist in ensuring the efficient and secure movement of international cargo. 

(j) LESSER RISK PORT.—The Secretary, acting through the Commissioner, may treat cargo loaded in a foreign seaport designated 

under the Container Security Initiative as presenting a lesser risk 

than similar cargo loaded in a foreign seaport that is not designated under the Container Security Initiative, for the purpose of 

clearing such cargo into the United States. 

(k) PROHIBITION.—

(1) IN GENERAL.—The Secretary shall issue a ‘‘do not load’’ order, using existing authorities, to prevent the onload of any 

cargo loaded at a port designated under CSI that has been 

identified as high risk, including by the Automated Targeting 

System, unless the cargo is determined to no longer be high risk 

through—

(A) a scan of the cargo with nonintrusive imaging 

equipment and radiation detection equipment; 

(B) a search of the cargo; or 

(C) additional information received by the Department. 

(2) RULE OF CONSTRUCTION.—Nothing in this subsection 

shall be construed to interfere with the ability of the Secretary 

to deny entry of any cargo into the United States. 

(l) REPORT.—

(1) IN GENERAL.—Not later than September 30, 2007, the 

Secretary, acting through the Commissioner, shall, in consultation with other appropriate government officials and the Commercial Operations Advisory Committee, submit a report to the 

appropriate congressional committees on the effectiveness of, 

and the need for any improvements to, the Container Security 

Initiative. The report shall include—


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26 

(A) a description of the technical assistance delivered 

to, as well as needed at, each designated seaport; 

(B) a description of the human capital management 

plan at each designated seaport; 

(C) a summary of the requests made by the United 

States to foreign governments to conduct physical or nonintrusive inspections of cargo at designated seaports, and 

whether each such request was granted or denied by the 

foreign government; 

(D) an assessment of the effectiveness of screening, 

scanning, and inspection protocols and technologies utilized 

at designated seaports and the effect on the flow of commerce at such seaports, as well as any recommendations for 

improving the effectiveness of screening, scanning, and inspection protocols and technologies utilized at designated 

seaports; 

(E) a description and assessment of the outcome of any 

security incident involving a foreign seaport designated 

under the Container Security Initiative; 

(F) the rationale for the continuance of each port designated under CSI; 

(G) a description of the potential for remote targeting 

to decrease the number of personnel who are deployed at 

foreign ports under CSI; and 

(H) a summary and assessment of the aggregate number and extent of trade compliance lapses at each seaport 

designated under the Container Security Initiative. 

(2) UPDATED REPORT.—Not later than September 30, 2010, 

the Secretary, acting through the Commissioner, shall, in consultation with other appropriate government officials and the 

Commercial Operations Advisory Committee, submit an updated report to the appropriate congressional committees on the 

effectiveness of, and the need for any improvements to, the Container Security Initiative. The updated report shall address 

each of the elements required to be included in the report provided for under paragraph (1). 

(m) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated to the United States Customs and Border Protection to carry out the provisions of this section— (1) $144,000,000 for fiscal year 2008; 

(2) $146,000,000 for fiscal year 2009; and 

(3) $153,300,000 for fiscal year 2010. 

Subtitle B—Customs–Trade Partnership Against Terrorism 

SEC. 211. ESTABLISHMENT. 

(a) ESTABLISHMENT.—The Secretary, acting through the Commissioner, is authorized to establish a voluntary government-private 

sector program (to be known as the ‘‘Customs–Trade Partnership 

Against Terrorism’’ or ‘‘C–TPAT’’) to strengthen and improve the 

overall security of the international supply chain and United States 

border security, and to facilitate the movement of secure cargo 

through the international supply chain, by providing benefits to 

participants meeting or exceeding the program requirements. Participants in C–TPAT shall include Tier 1 participants, Tier 2 participants, and Tier 3 participants. 


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27 

(b) MINIMUM SECURITY REQUIREMENTS.—The Secretary, acting 

through the Commissioner, shall review the minimum security requirements of C–TPAT at least once every year and update such requirements as necessary. 

SEC. 212. ELIGIBLE ENTITIES. 

Importers, customs brokers, forwarders, air, sea, land carriers, 

contract logistics providers, and other entities in the international 

supply chain and intermodal transportation system are eligible to 

apply to voluntarily enter into partnerships with the Department 

under C–TPAT. 

SEC. 213. MINIMUM REQUIREMENTS. 

An applicant seeking to participate in C–TPAT shall—

(1) demonstrate a history of moving cargo in the international supply chain; 

(2) conduct an assessment of its supply chain based upon 

security criteria established by the Secretary, acting through the 

Commissioner, including—

(A) business partner requirements; 

(B) container security; 

(C) physical security and access controls; 

(D) personnel security; 

(E) procedural security; 

(F) security training and threat awareness; and 

(G) information technology security; 

(3) implement and maintain security measures and supply 

chain security practices meeting security criteria established by 

the Commissioner; and 

(4) meet all other requirements established by the Commissioner, in consultation with the Commercial Operations Advisory Committee. 

SEC. 214. TIER 1 PARTICIPANTS IN C–TPAT. 

(a) BENEFITS.—The Secretary, acting through the Commissioner, shall offer limited benefits to a Tier 1 participant who has 

been certified in accordance with the guidelines referred to in subsection (b). Such benefits may include a reduction in the score assigned pursuant to the Automated Targeting System of not greater 

than 20 percent of the high-risk threshold established by the Secretary. 

(b) GUIDELINES.—Not later than 180 days after the date of the 

enactment of this Act, the Secretary, acting through the Commissioner, shall update the guidelines for certifying a C–TPAT participant’s security measures and supply chain security practices under 

this section. Such guidelines shall include a background investigation and extensive documentation review. 

(c) TIMEFRAME.—To the extent practicable, the Secretary, acting 

through the Commissioner, shall complete the Tier 1 certification 

process within 90 days of receipt of an application for participation 

in C–TPAT. 

SEC. 215. TIER 2 PARTICIPANTS IN C–TPAT. 

(a) VALIDATION.—The Secretary, acting through the Commissioner, shall validate the security measures and supply chain security practices of a Tier 1 participant in accordance with the guidelines referred to in subsection (c). Such validation shall include onVerDate Aug 31 2005 03:37 Oct 04, 2006 Jkt 049006 PO 00000 Frm 00027 Fmt 6659 Sfmt 6603 E:\HR\OC\HR711.XXX HR711

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site assessments at appropriate foreign locations utilized by the Tier 

1 participant in its supply chain and shall, to the extent practicable, 

be completed not later than 1 year after certification as a Tier 1 participant. 

(b) BENEFITS.—The Secretary, acting through the Commissioner, shall extend benefits to each C–TPAT participant that has 

been validated as a Tier 2 participant under this section, which 

may include—

(1) reduced scores in the Automated Targeting System; 

(2) reduced examinations of cargo; and 

(3) priority searches of cargo. 

(c) GUIDELINES.—Not later than 180 days after the date of the 

enactment of this Act, the Secretary, acting through the Commissioner, shall develop a schedule and update the guidelines for validating a participant’s security measures and supply chain security 

practices under this section. 

SEC. 216. TIER 3 PARTICIPANTS IN C–TPAT. 

(a) IN GENERAL.—The Secretary, acting through the Commissioner, shall establish a third tier of C–TPAT participation that offers additional benefits to participants who demonstrate a sustained 

commitment to maintaining security measures and supply chain security practices that exceed the guidelines established for validation 

as a Tier 2 participant in C–TPAT under section 215. 

(b) CRITERIA.—The Secretary, acting through the Commissioner, shall designate criteria for validating a C–TPAT participant 

as a Tier 3 participant under this section. Such criteria may include—

(1) compliance with any additional guidelines established 

by the Secretary that exceed the guidelines established pursuant 

to section 215 of this Act for validating a C–TPAT participant 

as a Tier 2 participant, particularly with respect to controls 

over access to cargo throughout the supply chain; 

(2) submission of additional information regarding cargo 

prior to loading, as determined by the Secretary; 

(3) utilization of container security devices, technologies, 

policies, or practices that meet standards and criteria established by the Secretary; and 

(4) compliance with any other cargo requirements established by the Secretary. 

(c) BENEFITS.—The Secretary, acting through the Commissioner, in consultation with the Commercial Operations Advisory 

Committee and the National Maritime Security Advisory Committee, shall extend benefits to each C–TPAT participant that has 

been validated as a Tier 3 participant under this section, which 

may include—

(1) the expedited release of a Tier 3 participant’s cargo in 

destination ports within the United States during all threat levels designated by the Secretary; 

(2) further reduction in examinations of cargo; 

(3) priority for examinations of cargo; and 

(4) further reduction in the risk score assigned pursuant to 

the Automated Targeting System; and 

(5) inclusion in joint incident management exercises, as appropriate. 


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(d) DEADLINE.—Not later than 2 years after the date of the enactment of this Act, the Secretary, acting through the Commissioner, 

shall designate appropriate criteria pursuant to subsection (b) and 

provide benefits to validated Tier 3 participants pursuant to subsection (c). 

SEC. 217. CONSEQUENCES FOR LACK OF COMPLIANCE. 

(a) IN GENERAL.—If at any time a C–TPAT participant’s security measures and supply chain security practices fail to meet any 

of the requirements under this subtitle, the Commissioner may deny 

the participant benefits otherwise available under this subtitle, in 

whole or in part. The Commissioner shall develop procedures that 

provide appropriate protections to C–TPAT participants before benefits are revoked. Such procedures may not limit the ability of the 

Commissioner to take actions to protect the national security of the 

United States. 

(b) FALSE OR MISLEADING INFORMATION.—If a C–TPAT participant knowingly provides false or misleading information to the 

Commissioner during the validation process provided for under this 

subtitle, the Commissioner shall suspend or expel the participant 

from C–TPAT for an appropriate period of time. The Commissioner, 

after the completion of the process under subsection (c), may publish 

in the Federal Register a list of participants who have been suspended or expelled from C–TPAT pursuant to this subsection, and 

may make such list available to C–TPAT participants. 

(c) RIGHT OF APPEAL.—

(1) IN GENERAL.—A C–TPAT participant may appeal a decision of the Commissioner pursuant to subsection (a). Such appeal shall be filed with the Secretary not later than 90 days 

after the date of the decision, and the Secretary shall issue a 

determination not later than 180 days after the appeal is filed. 

(2) APPEALS OF OTHER DECISIONS.—A C–TPAT participant 

may appeal a decision of the Commissioner pursuant to subsection (b). Such appeal shall be filed with the Secretary not 

later than 30 days after the date of the decision, and the Secretary shall issue a determination not later than 180 days after 

the appeal is filed. 

SEC. 218. THIRD PARTY VALIDATIONS. 

(a) PLAN.—The Secretary, acting through the Commissioner, 

shall develop a plan to implement a 1-year voluntary pilot program 

to test and assess the feasibility, costs, and benefits of using third 

party entities to conduct validations of C–TPAT participants. 

(b) CONSULTATIONS.—Not later than 120 days after the date of 

the enactment of this Act, after consulting with private sector stakeholders, including the Commercial Operations Advisory Committee, 

the Secretary shall submit a report to the appropriate congressional 

committees on the plan described in subsection (a). 

(c) PILOT PROGRAM.—

(1) IN GENERAL.—Not later than 1 year after the consultations described in subsection (b), the Secretary shall carry out 

the 1-year pilot program to conduct validations of C–TPAT participants using third party entities described in subsection (a). 

(2) AUTHORITY OF THE SECRETARY.—The decision to validate a C–TPAT participant is solely within the discretion of the 

Secretary, or the Secretary’s designee. 


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30 

(d) CERTIFICATION OF THIRD PARTY ENTITIES.—The Secretary 

shall certify a third party entity to conduct validations under subsection (c) if the entity— (1) demonstrates to the satisfaction of the Secretary that the 

entity has the ability to perform validations in accordance with 

standard operating procedures and requirements designated by 

the Secretary; and 

(2) agrees— (A) to perform validations in accordance with such 

standard operating procedures and requirements (and updates to such procedures and requirements); and 

(B) to maintain liability insurance coverage at policy 

limits and in accordance with conditions to be established 

by the Secretary; and 

(3) signs an agreement to protect all proprietary information of C–TPAT participants with respect to which the entity 

will conduct validations. 

(e) INFORMATION FOR ESTABLISHING LIMITS OF LIABILITY INSURANCE.—A third party entity seeking a certificate under subsection (d) shall submit to the Secretary necessary information for 

establishing the limits of liability insurance required to be maintained by the entity under this Act. 

(f) ADDITIONAL REQUIREMENTS.—The Secretary shall ensure 

that— (1) any third party entity certified under this section does 

not have—

(A) any beneficial interest in or any direct or indirect 

control over the C–TPAT participant for which the validation services are performed; or 

(B) any other conflict of interest with respect to the C– TPAT participant; and 

(2) the C–TPAT participant has entered into a contract 

with the third party entity under which the C–TPAT participant agrees to pay all costs associated with the validation. 

(g) MONITORING.— (1) IN GENERAL.—The Secretary shall regularly monitor 

and inspect the operations of a third party entity conducting 

validations under subsection (c) to ensure that the entity is 

meeting the minimum standard operating procedures and requirements for the validation of C–TPAT participants established by the Secretary and all other applicable requirements 

for validation services. 

(2) REVOCATION.—If the Secretary determines that a third 

party entity is not meeting the minimum standard operating 

procedures and requirements designated by the Secretary under 

subsection (d)(1), the Secretary shall—

(A) revoke the entity’s certificate of conformance issued 

under subsection (d)(1); and 

(B) review any validations conducted by the entity. 

(h) LIMITATION ON AUTHORITY.—The Secretary may only grant 

a C–TPAT validation by a third party entity pursuant to subsection 

(c) if the C–TPAT participant voluntarily submits to validation by 

such third party entity. 

(i) REPORT.—Not later than 30 days after the completion of the 

pilot program conducted pursuant to subsection (c), the Secretary 


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shall submit a report to the appropriate congressional committees 

that contains— (1) the results of the pilot program, including the extent to 

which the pilot program ensured sufficient protection for proprietary commercial information; 

(2) the cost and efficiency associated with validations under 

the pilot program; 

(3) the impact of the pilot program on the rate of validations conducted under C–TPAT; 

(4) any impact on national security of the pilot program; 

and 

(5) any recommendations by the Secretary based upon the 

results of the pilot program. 

SEC. 219. REVALIDATION. 

The Secretary, acting through the Commissioner, shall develop 

and implement— (1) a revalidation process for Tier 2 and Tier 3 participants; 

(2) a framework based upon objective criteria for identifying participants for periodic revalidation not less frequently 

than once during each 4-year period following the initial validation; and 

(3) an annual plan for revalidation that includes—

(A) performance measures; 

(B) an assessment of the personnel needed to perform 

the revalidations; and 

(C) the number of participants that will be revalidated 

during the following year. 

SEC. 220. NONCONTAINERIZED CARGO. 

The Secretary, acting through the Commissioner, shall consider 

the potential for participation in C–TPAT by importers of noncontainerized cargoes that otherwise meet the requirements under 

this subtitle. 

SEC. 221. C–TPAT PROGRAM MANAGEMENT. 

(a) IN GENERAL.—The Secretary, acting through the Commissioner, shall establish sufficient internal quality controls and record 

management to support the management systems of C–TPAT. In 

managing the program, the Secretary shall ensure that the program 

includes: 

(1) STRATEGIC PLAN.—A 5-year plan to identify outcomebased goals and performance measures of the program. 

(2) ANNUAL PLAN.—An annual plan for each fiscal year designed to match available resources to the projected workload. 

(3) STANDARDIZED WORK PROGRAM.—A standardized work 

program to be used by agency personnel to carry out the certifications, validations, and revalidations of participants. The Secretary shall keep records and monitor staff hours associated 

with the completion of each such review. 

(b) DOCUMENTATION OF REVIEWS.—The Secretary, acting 

through the Commissioner, shall maintain a record management 

system to document determinations on the reviews of each C–TPAT 

participant, including certifications, validations, and revalidations. 

(c) CONFIDENTIAL INFORMATION SAFEGUARDS.—In consultation 

with the Commercial Operations Advisory Committee, the Secretary, 


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acting through the Commissioner, shall develop and implement procedures to ensure the protection of confidential data collected, 

stored, or shared with government agencies or as part of the application, certification, validation, and revalidation processes. 

(d) RESOURCE MANAGEMENT STAFFING PLAN.—The Secretary, 

acting through the Commissioner, shall— (1) develop a staffing plan to recruit and train staff (including a formalized training program) to meet the objectives 

identified in the strategic plan of the C–TPAT program; and 

(2) provide cross-training in postincident trade resumption 

for personnel who administer the C–TPAT program. 

(e) REPORT TO CONGRESS.—In connection with the President’s 

annual budget submission for the Department, the Secretary shall 

report to the appropriate congressional committees on the progress 

made by the Commissioner to certify, validate, and revalidate C– TPAT participants. Such report shall be due on the same date that 

the President’s budget is submitted to the Congress. 

SEC. 222. ADDITIONAL PERSONNEL. 

For fiscal years 2008 and 2009, the Commissioner shall increase by not less than 50 the number of full-time personnel engaged 

in the validation and revalidation of C–TPAT participants (over the 

number of such personnel on the last day of the previous fiscal 

year), and shall provide appropriate training and support to such 

additional personnel. 

SEC. 223. AUTHORIZATION OF APPROPRIATIONS. 

(a) C–TPAT.—There are authorized to be appropriated to the 

United States Customs and Border Protection to carry out the provisions of sections 211 through 221 to remain available until expended—

(1) $65,000,000 for fiscal year 2008; 

(2) $72,000,000 for fiscal year 2009; and 

(3) $75,600,000 for fiscal year 2010. 

(b) ADDITIONAL PERSONNEL.—In addition to any amounts otherwise appropriated to the United States Customs and Border Protection, there are authorized to be appropriated for the purpose of 

meeting the staffing requirement provided for in section 222, to remain available until expended—

(1) $8,500,000 for fiscal year 2008; 

(2) $17,600,000 for fiscal year 2009; 

(3) $19,000,000 for fiscal year 2010; 

(4) $20,000,000 for fiscal year 2011; and 

(5) $21,000,000 for fiscal year 2012. 

Subtitle C—Miscellaneous Provisions 

SEC. 231. PILOT INTEGRATED SCANNING SYSTEM. 

(a) DESIGNATIONS.—Not later than 90 days after the date of the 

enactment of this Act, the Secretary shall designate 3 foreign seaports through which containers pass or are transshipped to the 

United States for the establishment of pilot integrated scanning systems that couple nonintrusive imaging equipment and radiation detection equipment. In making the designations under this paragraph, the Secretary shall consider 3 distinct ports with unique features and differing levels of trade volume. 

(b) COORDINATION.—The Secretary shall—


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(1) coordinate with the Secretary of Energy, as necessary, to 

provide radiation detection equipment through the Department 

of Energy’s Second Line of Defense and Megaports programs; or 

(2) work with the private sector or, when possible, host governments to obtain radiation detection equipment that meets 

both the Department’s and the Department of Energy’s technical 

specifications for such equipment. 

(c) PILOT SYSTEM IMPLEMENTATION.—Not later than 1 year 

after the date of the enactment of this Act, the Secretary shall 

achieve a full-scale implementation of the pilot integrated scanning 

system at the ports designated under subsection (a), which— (1) shall scan all containers destined for the United States 

that are loaded in such ports; 

(2) shall electronically transmit the images and information to appropriate United States Government personnel in the 

country in which the port is located or in the United States for 

evaluation and analysis; 

(3) shall resolve every radiation alarm according to established Department procedures; 

(4) shall utilize the information collected to enhance the 

Automated Targeting System or other relevant programs; 

(5) shall store the information for later retrieval and analysis; and 

(6) may provide an automated notification of questionable 

or high-risk cargo as a trigger for further inspection by appropriately trained personnel. 

(d) REPORT.—Not later than 180 days after achieving full-scale 

implementation under subsection (c), the Secretary, in consultation 

with the Secretary of State and, as appropriate, the Secretary of Energy, shall submit a report to the appropriate congressional committees, that includes— (1) an evaluation of the lessons derived from the pilot system implemented under this subsection; 

(2) an analysis of the efficacy of the Automated Targeting 

System or other relevant programs in utilizing the images captured to examine high-risk containers; 

(3) an evaluation of the effectiveness of the integrated scanning system in detecting shielded and unshielded nuclear and 

radiological material; 

(4) an evaluation of software and other technologies that 

are capable of automatically identifying potential anomalies in 

scanned containers; and 

(5) an analysis of the need and feasibility of expanding the 

integrated scanning system to other container security initiative 

ports, including—

(A) an analysis of the infrastructure requirements; 

(B) a projection of the effect on current average processing speed of containerized cargo; 

(C) an evaluation of the scalability of the system to 

meet both current and future forecasted trade flows; 

(D) the ability of the system to automatically maintain 

and catalog appropriate data for reference and analysis in 

the event of a transportation disruption; 

(E) an analysis of requirements, including costs, to install and maintain an integrated scanning system; 


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(F) the ability of administering personnel to efficiently 

manage and utilize the data produced by a nonintrusive 

scanning system; 

(G) the ability to safeguard commercial data generated 

by, or submitted to, a nonintrusive scanning system; and 

(H) an assessment of the reliability of currently available technology to implement an integrated scanning system. 

SEC. 232. SCREENING AND SCANNING OF CARGO CONTAINERS. 

(a) ONE HUNDRED PERCENT SCREENING OF CARGO CONTAINERS

AND 100 PERCENT SCANNING OF HIGH-RISK CONTAINERS.—

(1) SCREENING OF CARGO CONTAINERS.—The Secretary 

shall ensure that 100 percent of the cargo containers originating 

outside the United States and unloaded at a United States seaport undergo a screening to identify high-risk containers. 

(2) SCANNING OF HIGH-RISK CONTAINERS.—The Secretary 

shall ensure that 100 percent of the containers that have been 

identified as high-risk under paragraph (1), or through other 

means, are scanned or searched before such containers leave a 

United States seaport facility. 

(b) FULL-SCALE IMPLEMENTATION.—The Secretary, in coordination with the Secretary of Energy and foreign partners, as appropriate, shall ensure integrated scanning systems are fully deployed 

to scan, using nonintrusive imaging equipment and radiation detection equipment, all containers entering the United States before 

such containers arrive in the United States as soon as possible, but 

not before the Secretary determines that the integrated scanning system—

(1) meets the requirements set forth in section 231(c); 

(2) has a sufficiently low false alarm rate for use in the 

supply chain; 

(3) is capable of being deployed and operated at ports overseas; 

(4) is capable of integrating, as necessary, with existing systems; 

(5) does not significantly impact trade capacity and flow of 

cargo at foreign or United States ports; and 

(6) provides an automated notification of questionable or 

high-risk cargo as a trigger for further inspection by appropriately trained personnel. 

(c) REPORT.—Not later than 6 months after the submission of 

a report under section 231(d), and every 6 months thereafter, the 

Secretary shall submit a report to the appropriate congressional 

committees describing the status of full-scale deployment under subsection (b) and the cost of deploying the system at each foreign port 

at which the integrated scanning systems are deployed. 

SEC. 233. INTERNATIONAL COOPERATION AND COORDINATION. 

(a) INSPECTION TECHNOLOGY AND TRAINING.— (1) IN GENERAL.—The Secretary, in coordination with the 

Secretary of State, the Secretary of Energy, and appropriate 

representatives of other Federal agencies, may provide technical 

assistance, equipment, and training to facilitate the implementation of supply chain security measures at ports designated 

under the Container Security Initiative. 


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(2) ACQUISITION AND TRAINING.—Unless otherwise prohibited by law, the Secretary may— (A) lease, loan, provide, or otherwise assist in the deployment of nonintrusive inspection and radiation detection 

equipment at foreign land and sea ports under such terms 

and conditions as the Secretary prescribes, including nonreimbursable loans or the transfer of ownership of equipment; and 

(B) provide training and technical assistance for domestic or foreign personnel responsible for operating or 

maintaining such equipment. 

(b) ACTIONS AND ASSISTANCE FOR FOREIGN PORTS AND UNITED

STATES TERRITORIES.—Section 70110 of title 46, United States 

Code, is amended—

(1) by striking the section header and inserting the following: 

‘‘§ 70110. Actions and assistance for foreign ports and United 

States territories’’; and 

(2) by adding at the end the following: 

‘‘(e) ASSISTANCE FOR FOREIGN PORTS AND UNITED STATES TER- RITORIES.—

‘‘(1) IN GENERAL.—The Secretary, in consultation with the 

Secretary of Transportation, the Secretary of State, and the Secretary of Energy, shall identify assistance programs that could 

facilitate implementation of port security antiterrorism measures in foreign countries and territories of the United States. 

The Secretary shall establish a program to utilize the programs 

that are capable of implementing port security antiterrorism 

measures at ports in foreign countries and territories of the 

United States that the Secretary finds to lack effective 

antiterrorism measures. ‘‘(2) CARIBBEAN BASIN.—The Secretary, in coordination 

with the Secretary of State and in consultation with the Organization of American States and the Commandant of the Coast 

Guard, shall place particular emphasis on utilizing programs 

to facilitate the implementation of port security antiterrorism 

measures at the ports located in the Caribbean Basin, as such 

ports pose unique security and safety threats to the United 

States due to— ‘‘(A) the strategic location of such ports between South 

America and the United States; ‘‘(B) the relative openness of such ports; and 

‘‘(C) the significant number of shipments of narcotics to 

the United States that are moved through such ports.’’. (c) REPORT ON SECURITY AT PORTS IN THE CARIBBEAN BASIN.—

(1) IN GENERAL.—Not later than 180 days after the date of 

the enactment of this Act, the Comptroller General of the United 

States shall submit a report to the appropriate congressional 

committees on the security of ports in the Caribbean Basin. 

(2) CONTENTS.—The report submitted under paragraph 

(1)— (A) shall include— (i) an assessment of the effectiveness of the measures employed to improve security at ports in the CarVerDate Aug 31 2005 03:37 Oct 04, 2006 Jkt 049006 PO 00000 Frm 00035 Fmt 6659 Sfmt 6603 E:\HR\OC\HR711.XXX HR711

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ibbean Basin and recommendations for any additional 

measures to improve such security; 

(ii) an estimate of the number of ports in the Caribbean Basin that will not be secured by January 1, 

2007; 

(iii) an estimate of the financial impact in the 

United States of any action taken pursuant to section 

70110 of title 46, United States Code, that affects trade 

between such ports and the United States; and 

(iv) an assessment of the additional resources and 

program changes that are necessary to maximize security at ports in the Caribbean Basin; and 

(B) may be submitted in both classified and redacted 

formats. 

(d) CLERICAL AMENDMENT.—The chapter analysis for chapter 

701 of title 46, United States Code, is amended by striking the item 

relating to section 70110 and inserting the following: 

‘‘70110. Actions and assistance for foreign ports and United States territories.’’. 

SEC. 234. FOREIGN PORT ASSESSMENTS. 

Section 70108 of title 46, United States Code, is amended by 

adding at the end the following: 

‘‘(d) PERIODIC REASSESSMENT.—The Secretary, acting through 

the Commandant of the Coast Guard, shall reassess the effectiveness of antiterrorism measures maintained at ports as described 

under subsection (a) and of procedures described in subsection (b) 

not less than once every 3 years.’’. 

SEC. 235. PILOT PROGRAM TO IMPROVE THE SECURITY OF EMPTY 

CONTAINERS. 

(a) IN GENERAL.—The Secretary shall conduct a 1-year pilot 

program to assess the risk posed by and improve the security of 

empty containers at United States seaports to ensure the safe and 

secure delivery of cargo and to prevent potential acts of terrorism involving such containers. The pilot program shall include the use of 

visual searches of empty containers at United States seaports. 

(b) REPORT.—Not later than 90 days after the completion of the 

pilot program under paragraph (1), the Secretary shall prepare and 

submit to the appropriate congressional committees a report that 

contains—

(1) the results of the pilot program; and 

(2) the determination of the Secretary on whether to expand 

the pilot program. 

SEC. 236. INFORMATION SHARING RELATING TO SUPPLY CHAIN SECURITY COOPERATION. 

(a) PURPOSES.—The purposes of this section are—

(1) to establish continuing liaison and to provide for supply 

chain security cooperation between Department and the private 

sector; and 

(2) to provide for regular and timely interchange of information between the private sector and the Department concerning developments and security risks in the supply chain environment. 

(b) SYSTEM.—The Secretary shall develop a system to collect 

from and share appropriate risk information related to the supply 


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37 

chain with the private sector entities determined appropriate by the 

Secretary. 

(c) CONSULTATION.—In developing the system under subsection 

(b), the Secretary shall consult with the Commercial Operations Advisory Committee and a broad range of public and private sector entities likely to utilize the system, including importers, exporters, carriers, customs brokers, and freight forwarders, among other parties. 

(d) INDEPENDENTLY OBTAINED INFORMATION.—Nothing in this 

section shall be construed to limit or otherwise affect the ability of 

a Federal, State, or local government entity, under applicable law, 

to obtain supply chain security information, including any information lawfully and properly disclosed generally or broadly to the public and to use such information in any manner permitted by law. 

(e) AUTHORITY TO ISSUE WARNINGS.—The Secretary may provide advisories, alerts, and warnings to relevant companies, targeted sectors, other governmental entities, or the general public regarding potential risks to the supply chain as appropriate. In 

issuing a warning, the Secretary shall take appropriate actions to 

protect from disclosure—

(1) the source of any voluntarily submitted supply chain security information that forms the basis for the warning; and 

(2) information that is proprietary, business sensitive, relates specifically to the submitting person or entity, or is otherwise not appropriately in the public domain. 

TITLE III—ADMINISTRATION 

SEC. 301. OFFICE OF CARGO SECURITY POLICY. 

(a) ESTABLISHMENT.—Subtitle C of title IV of the Homeland Security Act of 2002 (6 U.S.C. 231 et seq.) is amended by adding at 

the end the following: 

‘‘SEC. 431. OFFICE OF CARGO SECURITY POLICY. 

‘‘(a) ESTABLISHMENT.—There is established within the Department an Office of Cargo Security Policy (referred to in this section 

as the ‘Office’). 

‘‘(b) PURPOSE.—The Office shall—

‘‘(1) coordinate all Department policies relating to cargo security; and 

‘‘(2) consult with stakeholders and coordinate with other 

Federal agencies in the establishment of standards and regulations and to promote best practices. 

‘‘(c) DIRECTOR.— ‘‘(1) APPOINTMENT.—The Office shall be headed by a Director, who shall— ‘‘(A) be appointed by the Secretary; and 

‘‘(B) report to the Assistant Secretary for Policy. 

‘‘(2) RESPONSIBILITIES.—The Director shall—

‘‘(A) advise the Assistant Secretary for Policy in the development of Department-wide policies regarding cargo security; 

‘‘(B) coordinate all policies relating to cargo security 

among the agencies and offices within the Department relating to cargo security; and 

‘‘(C) coordinate the cargo security policies of the Department with the policies of other executive agencies.’’. 


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38 

(b) DESIGNATION OF LIAISON OFFICE OF DEPARTMENT OF

STATE.—The Secretary of State shall designate a liaison office within the Department of State to assist the Secretary, as appropriate, 

in negotiating cargo security-related international agreements. 

(c) RULE OF CONSTRUCTION.—Nothing in this section shall be 

construed to affect—

(1) the authorities, functions, or capabilities of the Coast 

Guard to perform its missions; or 

(2) the requirement under section 888 of the Homeland Security Act (6 U.S.C. 468) that those authorities, functions, and 

capabilities be maintained intact. 

(d) CLERICAL AMENDMENT.—The table of contents of the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended by inserting after the item relating to section 430 the following: 

‘‘Sec. 431. Office of Cargo Security Policy’’. 

SEC. 302. REAUTHORIZATION OF HOMELAND SECURITY SCIENCE AND 

TECHNOLOGY ADVISORY COMMITTEE. 

(a) IN GENERAL.—Section 311(j) of the Homeland Security Act 

of 2002 (6 U.S.C. 191(j)) is amended by striking ‘‘3 years after the 

effective date of this Act’’ and inserting ‘‘on December 31, 2008’’. 

(b) EFFECTIVE DATE.—The amendment made by subsection (a) 

shall be effective as if enacted on the date of the enactment of the 

Homeland Security Act of 2002 (6 U.S.C. 101 et seq.). 

(c) ADVISORY COMMITTEE.—The Under Secretary for Science 

and Technology shall utilize the Homeland Security Science and 

Technology Advisory Committee, as appropriate, to provide outside 

expertise in advancing cargo security technology. 

SEC. 303. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION EFFORTS IN FURTHERANCE OF MARITIME AND CARGO SECURITY. 

(a) IN GENERAL.—The Secretary shall—

(1) direct research, development, testing, and evaluation efforts in furtherance of maritime and cargo security; 

(2) coordinate with public and private sector entities to develop and test technologies, and process innovations in furtherance of these objectives; and 

(3) evaluate such technologies. 

(b) COORDINATION.—The Secretary, in coordination with the 

Under Secretary for Science and Technology, the Assistant Secretary 

for Policy, the Commandant of the Coast Guard, the Director for 

Domestic Nuclear Detection, the Chief Financial Officer, and the 

heads of other appropriate offices or entities of the Department, 

shall ensure that—

(1) research, development, testing, and evaluation efforts 

funded by the Department in furtherance of maritime and cargo 

security are coordinated within the Department and with other 

appropriate Federal agencies to avoid duplication of efforts; and 

(2) the results of such efforts are shared throughout the Department and with other Federal, State, and local agencies, as 

appropriate. 


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TITLE IV—AGENCY RESOURCES AND OVERSIGHT 

SEC. 401. TRADE AND CUSTOMS REVENUE FUNCTIONS OF THE DEPARTMENT. 

(a) TRADE AND CUSTOMS REVENUE FUNCTIONS.—

(1) DESIGNATION OF APPROPRIATE OFFICIAL.—The Secretary 

shall designate an appropriate senior official in the office of the 

Secretary who shall—

(A) ensure that the trade and customs revenue functions of the Department are coordinated within the Department and with other Federal departments and agencies, 

and that the impact on legitimate trade is taken into account in any action impacting the functions; and 

(B) monitor and report to Congress on the Department’s mandate to ensure that the trade and customs revenue functions of the Department are not diminished, including how spending, operations, and personnel related to 

these functions have kept pace with the level of trade entering the United States. 

(2) DIRECTOR OF TRADE POLICY.—There shall be a Director 

of Trade Policy (in this subsection referred to as the ‘‘Director’’), 

who shall be subject to the direction and control of the official 

designated pursuant to paragraph (1). The Director shall—

(A) advise the official designated pursuant to paragraph (1) regarding all aspects of Department policies relating to the trade and customs revenue functions of the Department; 

(B) coordinate the development of Department-wide 

policies regarding trade and customs revenue functions and 

trade facilitation; and 

(C) coordinate the trade and customs revenue-related 

policies of the Department with the policies of other Federal 

departments and agencies. 

(b) STUDY; REPORT.—

(1) IN GENERAL.—The Comptroller General of the United 

States shall conduct a study evaluating the extent to which the 

Department of Homeland Security is meeting its obligations 

under section 412(b) of the Homeland Security Act of 2002 (6 

U.S.C. 212(b)) with respect to the maintenance of customs revenue functions. 

(2) ANALYSIS.—The study shall include an analysis of—

(A) the extent to which the customs revenue functions 

carried out by the former United States Customs Service 

have been consolidated with other functions of the Department (including the assignment of noncustoms revenue 

functions to personnel responsible for customs revenue collection), discontinued, or diminished following the transfer 

of the United States Customs Service to the Department; 

(B) the extent to which staffing levels or resources attributable to customs revenue functions have decreased 

since the transfer of the United States Customs Service to 

the Department; and 

(C) the extent to which the management structure created by the Department ensures effective trade facilitation 

and customs revenue collection. 


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(3) REPORT.—Not later than 180 days after the date of the 

enactment of this Act, the Comptroller General shall submit to 

the appropriate congressional committees a report on the results 

of the study conducted under subsection (a). 

(4) MAINTENANCE OF FUNCTIONS.—Not later than September 30, 2007, the Secretary shall ensure that the requirements of section 412(b) of the Homeland Security Act of 2002 

(6 U.S.C. 212(b)) are fully satisfied and shall report to the Committee on Finance of the Senate and the Committee on Ways 

and Means of the House of Representatives regarding implementation of this paragraph. 

(5) DEFINITION.—In this section, the term ‘‘customs revenue 

functions’’ means the functions described in section 412(b)(2) of 

the Homeland Security Act of 2002 (6 U.S.C. 212(b)(2)). 

(c) CONSULTATION ON TRADE AND CUSTOMS REVENUE FUNCTIONS.—

(1) BUSINESS COMMUNITY CONSULTATIONS.—The Secretary 

shall consult with representatives of the business community involved in international trade, including seeking the advice and 

recommendations of the Commercial Operations Advisory Committee, on Department policies and actions that have a significant impact on international trade and customs revenue functions. 

(2) CONGRESSIONAL CONSULTATION AND NOTIFICATION.— (A) IN GENERAL.—Subject to subparagraph (B), the 

Secretary shall notify the appropriate congressional committees not later than 30 days prior to the finalization of 

any Department policies, initiatives, or actions that will 

have a major impact on trade and customs revenue functions. Such notifications shall include a description of the 

proposed policies, initiatives or actions and any comments 

or recommendations provided by the Commercial Operations Advisory Committee and other relevant groups regarding the proposed policies, initiatives or actions. 

(B) EXCEPTION.—If the Secretary determines that it is 

important to the national security interest of the United 

States to finalize any Department policies, initiatives, or actions prior to the consultation described in subparagraph 

(A), the Secretary shall— (i) notify and provide any recommendations of the 

Commercial Operations Advisory Committee received to 

the appropriate congressional committees not later 

than 45 days after the date on which the policies, initiatives, or actions are finalized; and 

(ii) to the extent appropriate, modify the policies, 

initiatives, or actions based upon the consultations 

with the appropriate congressional committees. 

(d) NOTIFICATION OF REORGANIZATION OF CUSTOMS REVENUE

FUNCTIONS.— (1) IN GENERAL.—Not less than 45 days prior to any change 

in the organization of any of the customs revenue functions of 

the Department, the Secretary shall notify the Committee on 

Appropriations, the Committee on Finance, and the Committee 

on Homeland Security and Governmental Affairs of the Senate, 

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land Security, and the Committee on Ways and Means of the 

House of Representatives of the specific assets, functions, or personnel to be transferred as part of such reorganization, and the 

reason for such transfer. The notification shall also include— (A) an explanation of how trade enforcement functions 

will be impacted by the reorganization; 

(B) an explanation of how the reorganization meets the 

requirements of section 412(b) of the Homeland Security 

Act of 2002 (6 U.S.C. 212(b)) that the Department not diminish the customs revenue and trade facilitation functions 

formerly performed by the United States Customs Service; 

and 

(C) any comments or recommendations provided by the 

Commercial Operations Advisory Committee regarding 

such reorganization. 

(2) ANALYSIS.—Any congressional committee referred to in 

paragraph (1) may request that the Commercial Operations Advisory Committee provide a report to the committee analyzing 

the impact of the reorganization and providing any recommendations for modifying the reorganization. 

(3) REPORT.—Not later than 1 year after any reorganization 

referred to in paragraph (1) takes place, the Secretary, in consultation with the Commercial Operations Advisory Committee, 

shall submit a report to the Committee on Finance of the Senate 

and the Committee on Ways and Means of the House of Representatives. Such report shall include an assessment of the impact of, and any suggested modifications to, such reorganization. 

SEC. 402. OFFICE OF INTERNATIONAL TRADE; OVERSIGHT. 

Section 2 of the Act of March 3, 1927 (44 Stat. 1381, chapter 

348; 19 U.S.C. 2072), is amended by adding at the end the following: ‘‘(d) OFFICE OF INTERNATIONAL TRADE.— ‘‘(1) ESTABLISHMENT.—There is established within the 

United States Customs and Border Protection an Office of 

International Trade that shall be headed by an Assistant Commissioner. ‘‘(2) TRANSFER OF ASSETS, FUNCTIONS, AND PERSONNEL; 

ELIMINATION OF OFFICES.— ‘‘(A) OFFICE OF STRATEGIC TRADE.— ‘‘(i) IN GENERAL.—Not later than 90 days after the 

date of the enactment of the SAFE Port Act, the Commissioner shall transfer the assets, functions, and personnel of the Office of Strategic Trade to the Office of 

International Trade established pursuant to paragraph 

(1) and the Office of Strategic Trade shall be abolished. 

‘‘(ii) LIMITATION ON FUNDS.—No funds appropriated to the United States Customs and Border Protection may be used to transfer the assets, functions, or 

personnel of the Office of Strategic Trade, to an office 

other than the office established pursuant to paragraph 

(1) of this subsection. 

‘‘(B) OFFICE OF REGULATIONS AND RULINGS.—

‘‘(i) IN GENERAL.—Not later than 90 days after the 

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missioner shall transfer the assets, functions, and personnel of the Office of Regulations and Rulings to the 

Office of International Trade established pursuant to 

paragraph (1) and the Office of Regulations and Rulings shall be abolished. ‘‘(ii) LIMITATION ON FUNDS.—No funds appropriated to the United States Customs and Border Protection may be used to transfer the assets, functions, or 

personnel of the Office of Regulations and Rulings, to 

an office other than the office established pursuant to 

paragraph (1) of this subsection. 

‘‘(C) OTHER TRANSFERS.—The Commissioner is authorized to transfer any other assets, functions, or personnel 

within the United States Customs and Border Protection to 

the Office of International Trade established pursuant to 

paragraph (1). Not less than 45 days prior to each such 

transfer, the Commissioner shall notify the Committee on 

Appropriations, the Committee on Finance, and the Committee on Homeland Security and Governmental Affairs of 

the Senate and the Committee on Appropriations, the Committee on Homeland Security, and the Committee on Ways 

and Means of the House of Representatives of the specific 

assets, functions, or personnel to be transferred, and the 

reason for such transfer. Such notification shall also include—

‘‘(i) an explanation of how trade enforcement functions will be impacted by the reorganization; 

‘‘(ii) an explanation of how the reorganization 

meets the requirements of section 412(b) of the Homeland Security Act of 2002 (6 U.S.C. 212(b)) that the Department of Homeland Security not diminish the customs revenue and trade facilitation functions formerly 

performed by the United States Customs Service; and 

‘‘(iii) any comments or recommendations provided 

by the Commercial Operations Advisory Committee regarding such reorganization. 

‘‘(D) REPORT.—Not later than 1 year after any reorganization pursuant to subparagraph (C) takes place, the 

Commissioner, in consultation with the Commercial Operations Advisory Committee, shall report to the Committee 

on Finance of the Senate and the Committee on Ways and 

Means of the House of Representatives. Such report shall 

include an assessment of the impact of, and any suggested 

modifications to, such reorganization. ‘‘(E) LIMITATION ON AUTHORITY.—Notwithstanding any 

other provision of law, the Commissioner shall not transfer 

any assets, functions, or personnel from United States ports 

of entry, associated with the enforcement of laws relating to 

trade in textiles and apparel, to the Office of International 

Trade established pursuant to paragraph (1), until the following conditions are met: ‘‘(i) The Commissioner submits the initial Resource 

Allocation Model required by section 301(h) of the Customs and Procedural Reform and Simplification Act of 

1978 (19 U.S.C. 2075) and includes in such Resource 


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Allocation Model a section addressing the allocation of 

assets, functions, and personnel associated with the enforcement of laws relating to trade in textiles and apparel. ‘‘(ii) The Commissioner consults with the Committee on Finance of the Senate and the Committee on 

Ways and Means of the House of Representatives regarding any subsequent transfer of assets, functions, or 

personnel associated with the enforcement of laws relating to trade in textiles and apparel, not less than 45 

days prior to such transfer. 

‘‘(F) LIMITATION ON APPROPRIATIONS.—No funds appropriated to the United States Customs and Border Protection 

may be used to transfer the assets, functions, or personnel 

associated with the enforcement of laws relating to trade in 

textiles and apparel, before the Commissioner consults with 

the congressional committees pursuant to subparagraph 

(E)(ii). 

‘‘(e) INTERNATIONAL TRADE COMMITTEE.—

‘‘(1) ESTABLISHMENT.—The Commissioner shall establish 

an International Trade Committee, to be chaired by the Commissioner, and to include the Deputy Commissioner, the Assistant Commissioner in the Office of Field Operations, the Assistant Commissioner in the Office of Finance, the Assistant Commissioner in the Office of International Affairs, the Assistant 

Commissioner in the Office of International Trade, the Director 

of the Office of Trade Relations, and any other official determined by the Commissioner to be important to the work of the 

Committee. 

‘‘(2) RESPONSIBILITIES.—The International Trade Committee shall—

‘‘(A) be responsible for advising the Commissioner with 

respect to the commercial customs and trade facilitation 

functions of the United States Customs and Border Protection; ‘‘(B) assist the Commissioner in coordinating with the 

Secretary regarding commercial customs and trade facilitation functions; and ‘‘(C) oversee the operation of all programs and systems 

that are involved in the assessment and collection of duties, 

bonds, and other charges or penalties associated with the 

entry of cargo into the United States, or the export of cargo 

from the United States, including the administration of 

duty drawback and the collection of antidumping and 

countervailing duties. 

‘‘(3) ANNUAL REPORT.—Not later than 30 days after the end 

of each fiscal year, the International Trade Committee shall 

submit a report to the Committee on Finance of the Senate and 

the Committee on Ways and Means of the House of Representatives. The report shall— ‘‘(A) detail the activities of the International Trade 

Committee during the preceding fiscal year; and ‘‘(B) identify the priorities of the International Trade 

Committee for the fiscal year in which the report is filed. ‘‘(f) DEFINITION.—In this section: 


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‘‘(1) COMMISSIONER.—The term ‘Commissioner’ means the 

Commissioner responsible for the United States Customs and 

Border Protection in the Department of Homeland Security. 

‘‘(2) COMMERCIAL OPERATIONS ADVISORY COMMITTEE.—The 

term ‘Commercial Operations Advisory Committee’ means the 

Advisory Committee established pursuant to section 9503(c) of 

the Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 2071 

note) or any successor committee.’’. 

SEC. 403. RESOURCES. 

Section 301 of the Customs Procedural Reform and Simplification Act of 1978 (19 U.S.C. 2075) is amended by adding at the end 

the following: 

‘‘(h) RESOURCE ALLOCATION MODEL.—

‘‘(1) RESOURCE ALLOCATION MODEL.—Not later than June 

30, 2007, and every 2 years thereafter, the Commissioner shall 

prepare and submit to the Committee on Finance of the Senate 

and the Committee on Ways and Means of the House of Representatives a Resource Allocation Model to determine the optimal staffing levels required to carry out the commercial operations of United States Customs and Border Protection, including commercial inspection and release of cargo and the revenue 

functions described in section 412(b)(2) of the Homeland Security Act of 2002 (6 U.S.C. 212(b)(2)). The Model shall comply 

with the requirements of section 412(b)(1) of such Act and shall 

take into account previous staffing models, historic and projected trade volumes, and trends. The Resource Allocation 

Model shall apply both risk-based and random sampling approaches for determining adequate staffing needs for priority 

trade functions, including—

‘‘(A) performing revenue functions; 

‘‘(B) enforcing antidumping and countervailing duty 

laws; 

‘‘(C) protecting intellectual property rights; 

‘‘(D) enforcing provisions of law relating to trade in textiles and apparel; 

‘‘(E) conducting agricultural inspections; 

‘‘(F) enforcing fines, penalties, and forfeitures; and 

‘‘(G) facilitating trade. 

‘‘(2) PERSONNEL.—

‘‘(A) IN GENERAL.—Not later than September 30, 2007, 

the Commissioner shall ensure that the requirements of section 412(b) of the Homeland Security Act of 2002 (6 U.S.C. 

212(b)) are fully satisfied and shall report to the Committee 

on Finance of the Senate and the Committee on Ways and 

Means of the House of Representatives regarding the implementation of this subparagraph. 

‘‘(B) CUSTOMS AND BORDER PROTECTION OFFICERS.—

The initial Resource Allocation Model required pursuant to 

paragraph (1) shall provide for the hiring of a minimum 

of 200 additional Customs and Border Protection Officers 

per year for each of the fiscal years 2008 through 2012. The 

Commissioner shall hire such additional Officers subject to 

the appropriation of funds to pay for the salaries and expenses of such Officers. In assigning the 1,000 additional 


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Officers authorized by this subparagraph, the Commissioner shall— ‘‘(i) consider the volume of trade and the incidence 

of nonvoluntarily disclosed customs and trade law violations in addition to security priorities among United 

States ports of entry; and ‘‘(ii) before October 1, 2010, assign at least 10 additional Officers among each service port and the ports 

of entry serviced by such service port, except as provided in subparagraph (C). 

‘‘(C) ASSIGNMENT.—In assigning such Officers pursuant to subparagraph (B), the Commissioner shall consult 

with the port directors of each service port and the other 

ports of entry serviced by such service port. The Commissioner shall not assign an Officer to a port of entry pursuant to subparagraph (B)(ii) if the port director of the service 

port that services such port of entry certifies to the Commissioner that an additional Officer is not needed at such port 

of entry. ‘‘(D) REPORT.—Not later than 60 days after the beginning of each of the fiscal years 2008 through 2012, the 

Commissioner shall submit a report to the Committee on 

Finance of the Senate, the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee 

on Homeland Security of the House of Representatives, and 

the Committee on Ways and Means of the House of Representatives, that describes how the additional Officers authorized under subparagraph (B) will be allocated among 

the ports of entry in the United States in accordance with 

subparagraph (C). 

‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—In addition to 

any monies hereafter appropriated to United States Customs 

and Border Protection in the Department of Homeland Security, 

there are authorized to be appropriated for the purpose of meeting the requirements of paragraph (2)(B), to remain available 

until expended—

‘‘(A) $36,000,000 for fiscal year 2008; 

‘‘(B) $75,000,000 for fiscal year 2009; 

‘‘(C) $118,000,000 for fiscal year 2010; 

‘‘(D) $165,000,000 for fiscal year 2011; and 

‘‘(E) $217,000,000 for fiscal year 2012. 

‘‘(4) REPORT.—Not later than 30 days after the end of each 

fiscal year, the Commissioner shall report to the Committee on 

Finance of the Senate and the Committee on Ways and Means 

of the House of Representatives on the resources directed to commercial and trade facilitation functions within the Office of 

Field Operations for the preceding fiscal year. Such information 

shall be reported for each category of personnel within the Office of Field Operations. ‘‘(5) REGULATIONS TO IMPLEMENT TRADE AGREEMENTS.— Not later than 30 days after the date of the enactment of the 

SAFE Port Act, the Commissioner shall designate and maintain not less than 5 attorneys within the Office of International 

Trade established pursuant to section 2 of the Act of March 3, 

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sibility for the prompt development and promulgation of regulations necessary to implement any trade agreement entered into 

by the United States, in addition to any other responsibilities 

assigned by the Commissioner. ‘‘(6) DEFINITION.—In this subsection, the term ‘Commissioner’ means the Commissioner responsible for United States 

Customs and Border Protection in the Department of Homeland 

Security.’’. 

SEC. 404. NEGOTIATIONS. 

Section 629 of the Tariff Act of 1930 (19 U.S.C. 1629) is amended by adding at the end the following: ‘‘(h) CUSTOMS PROCEDURES AND COMMITMENTS.— ‘‘(1) IN GENERAL.—The Secretary of Homeland Security, the 

United States Trade Representative, and other appropriate Federal officials shall work through appropriate international organizations including the World Customs Organization (WCO), 

the World Trade Organization (WTO), the International Maritime Organization, and the Asia-Pacific Economic Cooperation, 

to align, to the extent practicable, customs procedures, standards, requirements, and commitments in order to facilitate the 

efficient flow of international trade. ‘‘(2) UNITED STATES TRADE REPRESENTATIVE.— ‘‘(A) IN GENERAL.—The United States Trade Representative shall seek commitments in negotiations in the WTO 

regarding the articles of GATT 1994 that are described in 

subparagraph (B) that make progress in achieving— ‘‘(i) harmonization of import and export data collected by WTO members for customs purposes, to the 

extent practicable; ‘‘(ii) enhanced procedural fairness and transparency with respect to the regulation of imports and 

exports by WTO members; ‘‘(iii) transparent standards for the efficient release 

of cargo by WTO members, to the extent practicable; 

and ‘‘(iv) the protection of confidential commercial 

data. 

‘‘(B) ARTICLES DESCRIBED.—The articles of the GATT 

1994 described in this subparagraph are the following: ‘‘(i) Article V (relating to transit). 

‘‘(ii) Article VIII (relating to fees and formalities 

associated with importation and exportation). 

‘‘(iii) Article X (relating to publication and administration of trade regulations). 

‘‘(C) GATT 1994.—The term ‘GATT 1994’ means the 

General Agreement on Tariff and Trade annexed to the 

WTO Agreement. 

‘‘(3) CUSTOMS.—The Secretary of Homeland Security, acting through the Commissioner and in consultation with the 

United States Trade Representative, shall work with the WCO 

to facilitate the efficient flow of international trade, taking into 

account existing international agreements and the negotiating 

objectives of the WTO. The Commissioner shall work to—

‘‘(A) harmonize, to the extent practicable, import data 

collected by WCO members for customs purposes; 


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47 

‘‘(B) automate and harmonize, to the extent practicable, 

the collection and storage of commercial data by WCO 

members; 

‘‘(C) develop, to the extent practicable, transparent 

standards for the release of cargo by WCO members; 

‘‘(D) develop and harmonize, to the extent practicable, 

standards, technologies, and protocols for physical or nonintrusive examinations that will facilitate the efficient flow 

of international trade; and 

‘‘(E) ensure the protection of confidential commercial 

data. 

‘‘(4) DEFINITION.—In this subsection, the term ‘Commissioner’ means the Commissioner responsible for the United 

States Customs and Border Protection in the Department of 

Homeland Security.’’. 

SEC. 405. INTERNATIONAL TRADE DATA SYSTEM. 

Section 411 of the Tariff Act of 1930 (19 U.S.C. 1411) is amended by adding at the end the following: 

‘‘(d) INTERNATIONAL TRADE DATA SYSTEM.—

‘‘(1) ESTABLISHMENT.—

‘‘(A) IN GENERAL.—The Secretary of the Treasury (in 

this subsection, referred to as the ‘Secretary’) shall oversee 

the establishment of an electronic trade data interchange 

system to be known as the ‘International Trade Data System’ (ITDS). The ITDS shall be implemented not later than 

the date that the Automated Commercial Environment 

(commonly referred to as ‘ACE’) is fully implemented. 

‘‘(B) PURPOSE.—The purpose of the ITDS is to eliminate redundant information requirements, to efficiently regulate the flow of commerce, and to effectively enforce laws 

and regulations relating to international trade, by establishing a single portal system, operated by the United 

States Customs and Border Protection, for the collection 

and distribution of standard electronic import and export 

data required by all participating Federal agencies. 

‘‘(C) PARTICIPATION.—

‘‘(i) IN GENERAL.—All Federal agencies that require 

documentation for clearing or licensing the importation 

and exportation of cargo shall participate in the ITDS. 

‘‘(ii) WAIVER.—The Director of the Office of Management and Budget may waive, in whole or in part, 

the requirement for participation for any Federal agency based on the vital national interest of the United 

States. 

‘‘(D) CONSULTATION.—The Secretary shall consult with 

and assist the United States Customs and Border Protection and other agencies in the transition from paper to electronic format for the submission, issuance, and storage of 

documents relating to data required to enter cargo into the 

United States. In so doing, the Secretary shall also consult 

with private sector stakeholders, including the Commercial 

Operations Advisory Committee, in developing uniform 

data submission requirements, procedures, and schedules, 

for the ITDS. 


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‘‘(E) COORDINATION.—The Secretary shall be responsible for coordinating the operation of the ITDS among the 

participating agencies and the office within the United 

States Customs and Border Protection that is responsible 

for maintaining the ITDS. 

‘‘(2) DATA ELEMENTS.— ‘‘(A) IN GENERAL.—The Interagency Steering Committee 

(established under paragraph (3)) shall, in consultation 

with the agencies participating in the ITDS, define the 

standard set of data elements to be collected, stored, and 

shared in the ITDS, consistent with laws applicable to the 

collection and protection of import and export information. 

The Interagency Steering Committee shall periodically review the data elements in order to update the standard set 

of data elements, as necessary. ‘‘(B) COMMITMENTS AND OBLIGATIONS.—The Interagency Steering Committee shall ensure that the ITDS data 

requirements are compatible with the commitments and obligations of the United States as a member of the World 

Customs Organization (WCO) and the World Trade Organization (WTO) for the entry and movement of cargo. 

‘‘(3) INTERAGENCY STEERING COMMITTEE.—There is established an Interagency Steering Committee (in this section, referred to as the ‘Committee’). The members of the Committee 

shall include the Secretary (who shall serve as the chairperson 

of the Committee), the Director of the Office of Management and 

Budget, and the head of each agency participating in the ITDS. 

The Committee shall assist the Secretary in overseeing the implementation of, and participation in, the ITDS. ‘‘(4) REPORT.—The President shall submit a report before 

the end of each fiscal year to the Committee on Finance of the 

Senate and the Committee on Ways and Means of the House of 

Representatives. Each report shall include information on— ‘‘(A) the status of the ITDS implementation; 

‘‘(B) the extent of participation in the ITDS by Federal 

agencies; ‘‘(C) the remaining barriers to any agency’s participation; ‘‘(D) the consistency of the ITDS with applicable standards established by the World Customs Organization and 

the World Trade Organization; ‘‘(E) recommendations for technological and other improvements to the ITDS; and ‘‘(F) the status of the development, implementation, and 

management of the Automated Commercial Environment 

within the United States Customs and Border Protection. 

‘‘(5) SENSE OF CONGRESS.—It is the sense of Congress that 

agency participation in the ITDS is an important priority of the 

Federal Government and that the Secretary shall coordinate the 

operation of the ITDS closely among the participating agencies 

and the office within the United States Customs and Border 

Protection that is responsible for maintaining the ITDS. ‘‘(6) CONSTRUCTION.—Nothing in this section shall be construed as amending or modifying subsection (g) of section 301 

of title 13, United States Code. 


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49 

‘‘(7) DEFINITION.—The term ‘Commercial Operations Advisory Committee’ means the Advisory Committee established pursuant to section 9503(c) of the Omnibus Budget Reconciliation 

Act of 1987 (19 U.S.C. 2071 note) or any successor committee.’’. 

SEC. 406. IN-BOND CARGO. 

Title IV of the Tariff Act of 1930 is amended by inserting after 

section 553 the following: 

‘‘SEC. 553A. REPORT ON IN-BOND CARGO. 

‘‘(a) REPORT.—Not later than June 30, 2007, the Commissioner 

shall submit a report to the Committee on Commerce, Science, and 

Transportation of the Senate, the Committee on Finance of the Senate, the Committee on Homeland Security and Governmental Affairs 

of the Senate, the Committee on Homeland Security of the House of 

Representatives, the Committee on Transportation and Infrastructure of the House of Representatives, and the Committee on Ways 

and Means of the House of Representatives that includes—

‘‘(1) a plan for closing in-bond entries at the port of arrival; 

‘‘(2) an assessment of the personnel required to ensure 100 

percent reconciliation of in-bond entries between the port of arrival and the port of destination or exportation; 

‘‘(3) an assessment of the status of investigations of overdue 

in-bond shipments and an evaluation of the resources required 

to ensure adequate investigation of overdue in-bond shipments; 

‘‘(4) a plan for tracking in-bond cargo within the Automated Commercial Environment (ACE); 

‘‘(5) an assessment of whether any particular technologies 

should be required in the transport of in-bond cargo; 

‘‘(6) an assessment of whether ports of arrival should require any additional information regarding shipments of inbond cargo; 

‘‘(7) an evaluation of the criteria for targeting and examining in-bond cargo; and 

‘‘(8) an assessment of the feasibility of reducing the transit 

time for in-bond shipments, including an assessment of the impact of such a change on domestic and international trade. 

‘‘(b) DEFINITION.—In this section, the term ‘Commissioner’

means the Commissioner responsible for the United States Customs 

and Border Protection in the Department of Homeland Security.’’. 

SEC. 407. SENSE OF THE SENATE. 

It is the sense of the Senate that nothing in sections 111 

through 114, 121, and 201 through 236, or the amendments made 

by such sections, shall be construed to affect the jurisdiction of any 

Standing Committee of the Senate. 

TITLE V—DOMESTIC NUCLEAR DETECTION OFFICE 

SEC. 501. ESTABLISHMENT OF DOMESTIC NUCLEAR DETECTION OFFICE. 

(a) ESTABLISHMENT OF OFFICE.—The Homeland Security Act of 

2002 (6 U.S.C. 101 et seq.) is amended by adding at the end the following: 


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‘‘TITLE XVIII—DOMESTIC NUCLEAR DETECTION OFFICE 

‘‘SEC. 1801. DOMESTIC NUCLEAR DETECTION OFFICE. 

‘‘(a) ESTABLISHMENT.—There shall be established in the Department a Domestic Nuclear Detection Office (referred to in this title 

as the ‘Office’). The Secretary may request that the Secretary of Defense, the Secretary of Energy, the Secretary of State, the Attorney 

General, the Nuclear Regulatory Commission, and the directors of 

other Federal agencies, including elements of the Intelligence Community, provide for the reimbursable detail of personnel with relevant expertise to the Office. ‘‘(b) DIRECTOR.—The Office shall be headed by a Director for 

Domestic Nuclear Detection, who shall be appointed by the President. 

‘‘SEC. 1802. MISSION OF OFFICE. 

‘‘(a) MISSION.—The Office shall be responsible for coordinating 

Federal efforts to detect and protect against the unauthorized importation, possession, storage, transportation, development, or use of 

a nuclear explosive device, fissile material, or radiological material 

in the United States, and to protect against attack using such devices or materials against the people, territory, or interests of the 

United States and, to this end, shall— ‘‘(1) serve as the primary entity of the United States Government to further develop, acquire, and support the deployment of an enhanced domestic system to detect and report on 

attempts to import, possess, store, transport, develop, or use an 

unauthorized nuclear explosive device, fissile material, or radiological material in the United States, and improve that system 

over time; ‘‘(2) enhance and coordinate the nuclear detection efforts of 

Federal, State, local, and tribal governments and the private 

sector to ensure a managed, coordinated response; ‘‘(3) establish, with the approval of the Secretary and in coordination with the Attorney General, the Secretary of Defense, 

and the Secretary of Energy, additional protocols and procedures for use within the United States to ensure that the detection of unauthorized nuclear explosive devices, fissile material, 

or radiological material is promptly reported to the Attorney 

General, the Secretary, the Secretary of Defense, the Secretary 

of Energy, and other appropriate officials or their respective 

designees for appropriate action by law enforcement, military, 

emergency response, or other authorities; 

‘‘(4) develop, with the approval of the Secretary and in coordination with the Attorney General, the Secretary of State, the 

Secretary of Defense, and the Secretary of Energy, an enhanced 

global nuclear detection architecture with implementation 

under which—

‘‘(A) the Office will be responsible for the implementation of the domestic portion of the global architecture; 

‘‘(B) the Secretary of Defense will retain responsibility 

for implementation of Department of Defense requirements 

within and outside the United States; and 

‘‘(C) the Secretary of State, the Secretary of Defense, 

and the Secretary of Energy will maintain their respective 

responsibilities for policy guidance and implementation of 


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51 

the portion of the global architecture outside the United 

States, which will be implemented consistent with applicable law and relevant international arrangements; 

‘‘(5) ensure that the expertise necessary to accurately interpret detection data is made available in a timely manner for all 

technology deployed by the Office to implement the global nuclear detection architecture; 

‘‘(6) conduct, support, coordinate, and encourage an aggressive, expedited, evolutionary, and transformational program of 

research and development to generate and improve technologies 

to detect and prevent the illicit entry, transport, assembly, or 

potential use within the United States of a nuclear explosive device or fissile or radiological material, and coordinate with the 

Under Secretary for Science and Technology on basic and advanced or transformational research and development efforts 

relevant to the mission of both organizations; 

‘‘(7) carry out a program to test and evaluate technology for 

detecting a nuclear explosive device and fissile or radiological 

material, in coordination with the Secretary of Defense and the 

Secretary of Energy, as appropriate, and establish performance 

metrics for evaluating the effectiveness of individual detectors 

and detection systems in detecting such devices or material— ‘‘(A) under realistic operational and environmental conditions; and 

‘‘(B) against realistic adversary tactics and countermeasures; 

‘‘(8) support and enhance the effective sharing and use of 

appropriate information generated by the intelligence community, law enforcement agencies, counterterrorism community, 

other government agencies, and foreign governments, as well as 

provide appropriate information to such entities; 

‘‘(9) further enhance and maintain continuous awareness 

by analyzing information from all Office mission-related detection systems; and 

‘‘(10) perform other duties as assigned by the Secretary. 

‘‘SEC. 1803. HIRING AUTHORITY. 

‘‘In hiring personnel for the Office, the Secretary shall have the 

hiring and management authorities provided in section 1101 of the 

Strom Thurmond National Defense Authorization Act for Fiscal 

Year 1999 (5 U.S.C. 3104 note). The term of appointments for employees under subsection (c)(1) of such section may not exceed 5 

years before granting any extension under subsection (c)(2) of such 

section. 

‘‘SEC. 1804. TESTING AUTHORITY. 

‘‘(a) IN GENERAL.—The Director shall coordinate with the responsible Federal agency or other entity to facilitate the use by the 

Office, by its contractors, or by other persons or entities, of existing 

Government laboratories, centers, ranges, or other testing facilities 

for the testing of materials, equipment, models, computer software, 

and other items as may be related to the missions identified in section 1802. Any such use of Government facilities shall be carried out 

in accordance with all applicable laws, regulations, and contractual 

provisions, including those governing security, safety, and environmental protection, including, when applicable, the provisions of secVerDate Aug 31 2005 03:37 Oct 04, 2006 Jkt 049006 PO 00000 Frm 00051 Fmt 6659 Sfmt 6603 E:\HR\OC\HR711.XXX HR711

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52 

tion 309. The Office may direct that private sector entities utilizing 

Government facilities in accordance with this section pay an appropriate fee to the agency that owns or operates those facilities to defray additional costs to the Government resulting from such use. 

‘‘(b) CONFIDENTIALITY OF TEST RESULTS.—The results of tests 

performed with services made available shall be confidential and 

shall not be disclosed outside the Federal Government without the 

consent of the persons for whom the tests are performed. 

‘‘(c) FEES.—Fees for services made available under this section 

shall not exceed the amount necessary to recoup the direct and indirect costs involved, such as direct costs of utilities, contractor support, and salaries of personnel that are incurred by the United 

States to provide for the testing. 

‘‘(d) USE OF FEES.—Fees received for services made available 

under this section may be credited to the appropriation from which 

funds were expended to provide such services. 

‘‘SEC. 1805. RELATIONSHIP TO OTHER DEPARTMENT ENTITIES AND 

FEDERAL AGENCIES. 

‘‘The authority of the Director under this title shall not affect 

the authorities or responsibilities of any officer of the Department or 

of any officer of any other department or agency of the United States 

with respect to the command, control, or direction of the functions, 

personnel, funds, assets, and liabilities of any entity within the Department or any Federal department or agency. 

‘‘SEC. 1806. CONTRACTING AND GRANT MAKING AUTHORITIES. 

‘‘The Secretary, acting through the Director for Domestic Nuclear Detection, in carrying out the responsibilities under paragraphs (6) and (7) of section 1802(a), shall—

‘‘(1) operate extramural and intramural programs and distribute funds through grants, cooperative agreements, and other 

transactions and contracts; 

‘‘(2) ensure that activities under paragraphs (6) and (7) of 

section 1802(a) include investigations of radiation detection 

equipment in configurations suitable for deployment at seaports, which may include underwater or water surface detection 

equipment and detection equipment that can be mounted on 

cranes and straddle cars used to move shipping containers; and 

‘‘(3) have the authority to establish or contract with 1 or 

more federally funded research and development centers to provide independent analysis of homeland security issues and 

carry out other responsibilities under this title.’’. 

(b) TECHNICAL AND CONFORMING AMENDMENTS.—The Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended—

(1) in section 103(d) (6 U.S.C. 113(d)), by adding at the end 

the following: 

‘‘(5) A Director for Domestic Nuclear Detection.’’; 

(2) in section 302 (6 U.S.C. 182)—

(A) in paragraph (2), by striking ‘‘radiological, nuclear’’; and 

(B) in paragraph (5)(A), by striking ‘‘radiological, nuclear’’; and 

(3) in the table of contents, by adding at the end the following: 


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53 

‘‘TITLE XVIII—DOMESTIC NUCLEAR DETECTION OFFICE 

‘‘Sec. 1801. Domestic Nuclear Detection Office. 

‘‘Sec. 1802. Mission of Office. 

‘‘Sec. 1803. Hiring authority. 

‘‘Sec. 1804. Testing authority. 

‘‘Sec. 1805. Relationship to other Department entities and Federal agencies. 

‘‘Sec. 1806. Contracting and grant making authorities.’’. 

SEC. 502. TECHNOLOGY RESEARCH AND DEVELOPMENT INVESTMENT 

STRATEGY FOR NUCLEAR AND RADIOLOGICAL DETECTION. 

(a) IN GENERAL.—Not later than 1 year after the date of the enactment of this Act, the Secretary, the Secretary of Energy, the Secretary of Defense, and the Director of National Intelligence shall 

submit to Congress a research and development investment strategy 

for nuclear and radiological detection. 

(b) CONTENTS.—The strategy under subsection (a) shall include—

(1) a long term technology roadmap for nuclear and radiological detection applicable to the mission needs of the Department, the Department of Energy, the Department of Defense, 

and the Office of the Director of National Intelligence; 

(2) budget requirements necessary to meet the roadmap; 

and 

(3) documentation of how the Department, the Department 

of Energy, the Department of Defense, and the Office of the Director of National Intelligence will execute this strategy. 

(c) INITIAL REPORT.—Not later than 1 year after the date of the 

enactment of this Act, the Secretary shall submit a report to the appropriate congressional committees on—

(1) the impact of this title, and the amendments made by 

this title, on the responsibilities under section 302 of the Homeland Security Act of 2002 (6 U.S.C. 182); and 

(2) the efforts of the Department to coordinate, integrate, 

and establish priorities for conducting all basic and applied research, development, testing, and evaluation of technology and 

systems to detect, prevent, protect, and respond to chemical, biological, radiological, and nuclear terrorist attacks. 

(d) ANNUAL REPORT.—The Director for Domestic Nuclear Detection and the Under Secretary for Science and Technology shall 

jointly and annually notify Congress that the strategy and technology roadmap for nuclear and radiological detection developed 

under subsections (a) and (b) is consistent with the national policy 

and strategic plan for identifying priorities, goals, objectives, and 

policies for coordinating the Federal Government’s civilian efforts to 

identify and develop countermeasures to terrorist threats from weapons of mass destruction that are required under section 302(2) of the 

Homeland Security Act of 2002 (6 U.S.C. 182(2)). 

TITLE VI—COMMERCIAL MOBILE SERVICE ALERTS 

SEC. 601. SHORT TITLE. 

This title may be cited as the ‘‘Warning, Alert, and Response 

Network Act’’. 

SEC. 602. FEDERAL COMMUNICATIONS COMMISSION DUTIES. 

(a) COMMERCIAL MOBILE SERVICE ALERT REGULATIONS.—Within 180 days after the date on which the Commercial Mobile Service 


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54 

Alert Advisory Committee, established pursuant to section 603(a), 

transmits recommendations to the Federal Communications Commission, the Commission shall complete a proceeding to adopt relevant technical standards, protocols, procedures, and other technical 

requirements based on the recommendations of such Advisory Committee necessary to enable commercial mobile service alerting capability for commercial mobile service providers that voluntarily elect 

to transmit emergency alerts. The Commission shall consult with 

the National Institute of Standards and Technology regarding the 

adoption of technical standards under this subsection. 

(b) COMMERCIAL MOBILE SERVICE ELECTION.— (1) AMENDMENT OF COMMERCIAL MOBILE SERVICE LICENSE.—Within 120 days after the date on which the Federal 

Communications Commission adopts relevant technical standards and other technical requirements pursuant to subsection 

(a), the Commission shall complete a proceeding—

(A) to allow any licensee providing commercial mobile 

service (as defined in section 332(d)(1) of the Communications Act of 1934 (47 U.S.C. 332(d)(1))) to transmit emergency alerts to subscribers to, or users of, the commercial 

mobile service provided by such licensee; 

(B) to require any licensee providing commercial mobile service that elects, in whole or in part, under paragraph (2) not to transmit emergency alerts to provide clear 

and conspicuous notice at the point of sale of any devices 

with which its commercial mobile service is included, that 

it will not transmit such alerts via the service it provides 

for the device; and 

(C) to require any licensee providing commercial mobile service that elects under paragraph (2) not to transmit 

emergency alerts to notify its existing subscribers of its election. 

(2) ELECTION.— (A) IN GENERAL.—Within 30 days after the Commission 

issues its order under paragraph (1), each licensee providing commercial mobile service shall file an election with 

the Commission with respect to whether or not it intends to 

transmit emergency alerts. 

(B) TRANSMISSION STANDARDS; NOTIFICATION.—If a licensee providing commercial mobile service elects to transmit emergency alerts via its commercial mobile service, the 

licensee shall— (i) notify the Commission of its election; and 

(ii) agree to transmit such alerts in a manner consistent with the technical standards, protocols, procedures, and other technical requirements implemented 

by the Commission. 

(C) NO FEE FOR SERVICE.—A commercial mobile service 

licensee that elects to transmit emergency alerts may not 

impose a separate or additional charge for such transmission or capability. 

(D) WITHDRAWAL; LATE ELECTION.—The Commission 

shall establish a procedure— (i) for a commercial mobile service licensee that 

has elected to transmit emergency alerts to withdraw 


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55 

its election without regulatory penalty or forfeiture 

upon advance written notification of the withdrawal to 

its affected subscribers; 

(ii) for a commercial mobile service licensee to elect 

to transmit emergency alerts at a date later than provided in subparagraph (A); and 

(iii) under which a subscriber may terminate a 

subscription to service provided by a commercial mobile service licensee that withdraws its election without 

penalty or early termination fee. 

(E) CONSUMER CHOICE TECHNOLOGY.—Any commercial 

mobile service licensee electing to transmit emergency alerts 

may offer subscribers the capability of preventing the subscriber’s device from receiving such alerts, or classes of such 

alerts, other than an alert issued by the President. Within 

2 years after the Commission completes the proceeding 

under paragraph (1), the Commission shall examine the 

issue of whether a commercial mobile service provider 

should continue to be permitted to offer its subscribers such 

capability. The Commission shall submit a report with its 

recommendations to the Committee on Commerce, Science, 

and Transportation of the Senate and the Committee on 

Energy and Commerce of the House of Representatives. 

(c) DIGITAL TELEVISION TRANSMISSION TOWERS RETRANS- MISSION CAPABILITY.—Within 90 days after the date on which the 

Commission adopts relevant technical standards based on recommendations of the Commercial Mobile Service Alert Advisory 

Committee, established pursuant to section 603(a), the Commission 

shall complete a proceeding to require licensees and permittees of 

noncommercial educational broadcast stations or public broadcast 

stations (as those terms are defined in section 397(6) of the Communications Act of 1934 (47 U.S.C. 397(6))) to install necessary equipment and technologies on, or as part of, any broadcast television 

digital signal transmitter to enable the distribution of geographically targeted alerts by commercial mobile service providers that 

have elected to transmit emergency alerts under this section. 

(d) FCC REGULATION OF COMPLIANCE.—The Federal Communications Commission may enforce compliance with this title but 

shall have no rulemaking authority under this title, except as provided in subsections (a), (b), (c), and (f). 

(e) LIMITATION OF LIABILITY.—

(1) IN GENERAL.—Any commercial mobile service provider 

(including its officers, directors, employees, vendors, and 

agents) that transmits emergency alerts and meets its obligations under this title shall not be liable to any subscriber to, or 

user of, such person’s service or equipment for—

(A) any act or omission related to or any harm resulting from the transmission of, or failure to transmit, an 

emergency alert; or 

(B) the release to a government agency or entity, public 

safety, fire service, law enforcement official, emergency 

medical service, or emergency facility of subscriber information used in connection with delivering such an alert. 

(2) ELECTION NOT TO TRANSMIT ALERTS.—The election by a 

commercial mobile service provider under subsection (b)(2)(A) 


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56 

not to transmit emergency alerts, or to withdraw its election to 

transmit such alerts under subsection (b)(2)(D) shall not, by 

itself, provide a basis for liability against the provider (including its officers, directors, employees, vendors, and agents). 

(f) TESTING.—The Commission shall require by regulation technical testing for commercial mobile service providers that elect to 

transmit emergency alerts and for the devices and equipment used 

by such providers for transmitting such alerts. 

SEC. 603. COMMERCIAL MOBILE SERVICE ALERT ADVISORY COMMITTEE. 

(a) ESTABLISHMENT.—Not later than 60 days after the date of 

enactment of this Act, the chairman of the Federal Communications 

Commission shall establish an advisory committee, to be known as 

the Commercial Mobile Service Alert Advisory Committee (referred 

to in this section as the ‘‘Advisory Committee’’). 

(b) MEMBERSHIP.—The chairman of the Federal Communications Commission shall appoint the members of the Advisory Committee, as soon as practicable after the date of enactment of this Act, 

from the following groups: 

(1) STATE AND LOCAL GOVERNMENT REPRESENTATIVES.—

Representatives of State and local governments and representatives of emergency response providers, selected from among individuals nominated by national organizations representing 

such governments and personnel. 

(2) TRIBAL GOVERNMENTS.—Representatives from Federally 

recognized Indian tribes and National Indian organizations. 

(3) SUBJECT MATTER EXPERTS.—Individuals who have the 

requisite technical knowledge and expertise to serve on the Advisory Committee in the fulfillment of its duties, including representatives of—

(A) communications service providers; 

(B) vendors, developers, and manufacturers of systems, 

facilities, equipment, and capabilities for the provision of 

communications services; 

(C) third-party service bureaus; 

(D) technical experts from the broadcasting industry; 

(E) the national organization representing the licensees 

and permittees of noncommercial broadcast television stations; 

(F) national organizations representing individuals 

with special needs, including individuals with disabilities 

and the elderly; and 

(G) other individuals with relevant technical expertise. 

(4) QUALIFIED REPRESENTATIVES OF OTHER STAKEHOLDERS

AND INTERESTED PARTIES.—Qualified representatives of such 

other stakeholders and interested and affected parties as the 

chairman deems appropriate. 

(c) DEVELOPMENT OF SYSTEM-CRITICAL RECOMMENDATIONS.—

Within 1 year after the date of enactment of this Act, the Advisory 

Committee shall develop and submit to the Federal Communications Commission recommendations—

(1) for protocols, technical capabilities, and technical procedures through which electing commercial mobile service providers receive, verify, and transmit alerts to subscribers; 


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57 

(2) for the establishment of technical standards for priority 

transmission of alerts by electing commercial mobile service 

providers to subscribers; 

(3) for relevant technical standards for devices and equipment and technologies used by electing commercial mobile service providers to transmit emergency alerts to subscribers; 

(4) for the technical capability to transmit emergency alerts 

by electing commercial mobile providers to subscribers in languages in addition to English, to the extent practicable and feasible; 

(5) under which electing commercial mobile service providers may offer subscribers the capability of preventing the 

subscriber’s device from receiving emergency alerts, or classes of 

such alerts, (other than an alert issued by the President), consistent with section 602(b)(2)(E); 

(6) for a process under which commercial mobile service 

providers can elect to transmit emergency alerts if— (A) not all of the devices or equipment used by such 

provider are capable of receiving such alerts; or 

(B) the provider cannot offer such alerts throughout the 

entirety of its service area; and 

(7) as otherwise necessary to enable electing commercial 

mobile service providers to transmit emergency alerts to subscribers. 

(d) MEETINGS.— (1) INITIAL MEETING.—The initial meeting of the Advisory 

Committee shall take place not later than 60 days after the date 

of the enactment of this Act. 

(2) OTHER MEETINGS.—After the initial meeting, the Advisory Committee shall meet at the call of the chair. 

(3) NOTICE; OPEN MEETINGS.—Any meetings held by the 

Advisory Committee shall be duly noticed at least 14 days in 

advance and shall be open to the public. 

(e) RULES.— (1) QUORUM.—One-third of the members of the Advisory 

Committee shall constitute a quorum for conducting business of 

the Advisory Committee. 

(2) SUBCOMMITTEES.—To assist the Advisory Committee in 

carrying out its functions, the chair may establish appropriate 

subcommittees composed of members of the Advisory Committee 

and other subject matter experts as deemed necessary. 

(3) ADDITIONAL RULES.—The Advisory Committee may 

adopt other rules as needed. 

(f) FEDERAL ADVISORY COMMITTEE ACT.—Neither the Federal 

Advisory Committee Act (5 U.S.C. App.) nor any rule, order, or regulation promulgated under that Act shall apply to the Advisory 

Committee. 

(g) CONSULTATION WITH NIST.—The Advisory Committee shall 

consult with the National Institute of Standards and Technology in 

its work on developing recommendations under paragraphs (2) and 

(3) of subsection (c). 

SEC. 604. RESEARCH AND DEVELOPMENT. 

(a) IN GENERAL.—The Under Secretary of Homeland Security 

for Science and Technology, in consultation with the director of the 

National Institute of Standards and Technology and the chairman 


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58 

of the Federal Communications Commission, shall establish a research, development, testing, and evaluation program based on the 

recommendations of the Commercial Mobile Service Alert Advisory 

Committee, established pursuant to section 603(a), to support the 

development of technologies to increase the number of commercial 

mobile service devices that can receive emergency alerts. 

(b) FUNCTIONS.—The program established under subsection (a) 

shall—

(1) fund research, development, testing, and evaluation at 

academic institutions, private sector entities, government laboratories, and other appropriate entities; and 

(2) ensure that the program addresses, at a minimum—

(A) developing innovative technologies that will transmit geographically targeted emergency alerts to the public; 

and 

(B) research on understanding and improving public 

response to warnings. 

SEC. 605. GRANT PROGRAM FOR REMOTE COMMUNITY ALERT SYSTEMS. 

(a) GRANT PROGRAM.—The Under Secretary of Commerce for 

Oceans and Atmosphere, in consultation with the Secretary of 

Homeland Security, shall establish a program under which grants 

may be made to provide for outdoor alerting technologies in remote 

communities effectively unserved by commercial mobile service (as 

determined by the Federal Communications Commission within 180 

days after the date of enactment of this Act) for the purpose of enabling residents of those communities to receive emergency alerts. 

(b) APPLICATIONS AND CONDITIONS.—In conducting the program, the Under Secretary—

(1) shall establish a notification and application procedure; 

and 

(2) may establish such conditions, and require such assurances, as may be appropriate to ensure the efficiency and integrity of the grant program. 

(c) SUNSET.—The Under Secretary may not make grants under 

subsection (a) more than 5 years after the date of enactment of this 

Act. 

(d) LIMITATION.—The sum of the amounts awarded for all fiscal 

years as grants under this section may not exceed $10,000,000. 

SEC. 606. FUNDING. 

(a) IN GENERAL.—In addition to any amounts provided by appropriation Acts, funding for this title shall be provided from the 

Digital Transition and Public Safety Fund in accordance with section 3010 of the Digital Television Transition and Public Safety Act 

of 2005 (47 U.S.C. 309 note). 

(b) COMPENSATION.—The Assistant Secretary of Commerce for 

Communications and Information shall compensate any such 

broadcast station licensee or permittee for reasonable costs incurred 

in complying with the requirements imposed pursuant to section 

602(c) from funds made available under this section. The Assistant 

Secretary shall ensure that sufficient funds are made available to 

effectuate geographically targeted alerts. 

(c) CREDIT.—The Assistant Secretary of Commerce for Communications and Information, in consultation with the Under Secretary 


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of Homeland Security for Science and Technology and the Under 

Secretary of Commerce for Oceans and Atmosphere, may borrow 

from the Treasury beginning on October 1, 2006, such sums as may 

be necessary, but not to exceed $106,000,000, to implement this title. 

The Assistant Secretary of Commerce for Communications and Information shall ensure that the Under Secretary of Homeland Security for Science and Technology and the Under Secretary of Commerce for Oceans and Atmosphere are provided adequate funds to 

carry out their responsibilities under sections 604 and 605 of this 

title. The Treasury shall be reimbursed, without interest, from 

amounts in the Digital Television Transition and Public Safety 

Fund as funds are deposited into the Fund. 

SEC. 607. ESSENTIAL SERVICES DISASTER ASSISTANCE. 

Title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170 et seq.) is amended by adding 

at the end the following: 

‘‘SEC. 425. ESSENTIAL SERVICE PROVIDERS. 

‘‘(a) DEFINITION.—In this section, the term ‘essential service provider’ means an entity that— ‘‘(1) provides— ‘‘(A) telecommunications service; 

‘‘(B) electrical power; 

‘‘(C) natural gas; 

‘‘(D) water and sewer services; or 

‘‘(E) any other essential service, as determined by the 

President; 

‘‘(2) is—

‘‘(A) a municipal entity; 

‘‘(B) a nonprofit entity; or 

‘‘(C) a private, for profit entity; and 

‘‘(3) is contributing to efforts to respond to an emergency or 

major disaster. 

‘‘(b) AUTHORIZATION FOR ACCESSIBILITY.—Unless exceptional 

circumstances apply, in an emergency or major disaster, the head 

of a Federal agency, to the greatest extent practicable, shall not—

‘‘(1) deny or impede access to the disaster site to an essential service provider whose access is necessary to restore and repair an essential service; or 

‘‘(2) impede the restoration or repair of the services described in subsection (a)(1). 

‘‘(c) IMPLEMENTATION.—In implementing this section, the head 

of a Federal agency shall follow all applicable Federal laws, regulations, and policies.’’. 

SEC. 608. COMMUNITY DISASTER LOANS. 

Section 417(b) of the Robert T. Stafford Disaster Relief and 

Emergency Assistance Act (42 U.S.C. 5184(b)) is amended—

(1) by striking ‘‘exceed 25 per centum’’ and inserting the following: ‘‘exceed—

‘‘(1) 25 percent’’; and 

(2) by striking the period at the end and inserting the following: ‘‘; or 

‘‘(2) if the loss of tax and other revenues of the local government as a result of the major disaster is at least 75 percent of 

the annual operating budget of that local government for the 


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fiscal year in which the major disaster occurs, 50 percent of the 

annual operating budget of that local government for the fiscal 

year in which the major disaster occurs, and shall not exceed 

$5,000,000.’’. 

SEC. 609. PUBLIC FACILITIES. 

Section 406(c)(1) of the Robert T. Stafford Disaster Relief and 

Emergency Assistance Act (42 U.S.C. 5172(c)(1)) is amended—

(1) in subparagraph (A), by striking ‘‘75’’ and inserting 

‘‘90’’; 

(2) by striking subparagraph (B); and 

(3) by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively. 

SEC. 610. EXPEDITED PAYMENTS. 

Section 407 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5173) is amended by adding at the 

end the following: 

‘‘(e) EXPEDITED PAYMENTS.—

‘‘(1) GRANT ASSISTANCE.—In making a grant under subsection (a)(2), the President shall provide not less than 50 percent of the President’s initial estimate of the Federal share of 

assistance as an initial payment in accordance with paragraph 

(2). 

‘‘(2) DATE OF PAYMENT.—Not later than 60 days after the 

date of the estimate described in paragraph (1) and not later 

than 90 days after the date on which the State or local government or owner or operator of a private nonprofit facility applies 

for assistance under this section, an initial payment described 

in paragraph (1) shall be paid.’’. 

SEC. 611. USE OF LOCAL CONTRACTING. 

Section 307(b) of the Robert T. Stafford Disaster Relief and 

Emergency Assistance Act (42 U.S.C. 5150), as amended by the 

Post-Katrina Emergency Management Reform Act of 2006, is 

amended by adding at the end the following: 

‘‘(3) FORMULATION OF REQUIREMENTS.—The head of a Federal agency, as feasible and practicable, shall formulate appropriate requirements to facilitate compliance with this section.’’. 

SEC. 612. FEMA PROGRAMS. 

Notwithstanding any other provision of Federal law, as of April 

1, 2007, the Director of the Federal Emergency Management Agency 

shall be responsible for the radiological emergency preparedness 

program and the chemical stockpile emergency preparedness program. 

SEC. 613. HOMELAND SECURITY DEFINITION. 

Section 2(6) of the Homeland Security Act of 2002 (6 U.S.C. 

101(6)) is amended by inserting ‘‘governmental and nongovernmental’’ after ‘‘local’’. 

TITLE VII—OTHER MATTERS 

SEC. 701. SECURITY PLAN FOR ESSENTIAL AIR SERVICE AND SMALL 

COMMUNITY AIRPORTS. 

(a) IN GENERAL.—Not later than 60 days after the date of the 

enactment of this Act, the Assistant Secretary for the Transportation 


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Security Administration shall submit to Congress a security plan 

for—

(1) Essential Air Service airports in the United States; and 

(2) airports whose community or consortia of communities 

receive assistance under the Small Community Air Service Development Program authorized under section 41743 of title 49, 

United States Code, and maintain, resume, or obtain scheduled 

passenger air carrier service with assistance from that program 

in the United States. 

(b) ELEMENTS OF PLAN.—The security plans required under 

subsection (a) shall include the following: 

(1) Recommendations for improved security measures at 

such airports. 

(2) Recommendations for proper passenger and cargo security screening procedures at such airports. 

(3) A timeline for implementation of recommended security 

measures or procedures at such airports. 

(4) Cost analysis for implementation of recommended security measures or procedures at such airports. 

SEC. 702. DISCLOSURES REGARDING HOMELAND SECURITY GRANTS. 

(a) DEFINITIONS.—In this section: 

(1) HOMELAND SECURITY GRANT.—The term ‘‘homeland security grant’’ means any grant made or administered by the Department, including—

(A) the State Homeland Security Grant Program; 

(B) the Urban Area Security Initiative Grant Program; 

(C) the Law Enforcement Terrorism Prevention Program; 

(D) the Citizen Corps; and 

(E) the Metropolitan Medical Response System. 

(2) LOCAL GOVERNMENT.—The term ‘‘local government’’ has 

the meaning given the term in section 2 of the Homeland Security Act of 2002 (6 U.S.C. 101). 

(b) REQUIRED DISCLOSURES.—Each State or local government 

that receives a homeland security grant shall, not later than 12 

months after the later of the date of the enactment of this Act and 

the date of receipt of such grant, and every 12 months thereafter 

until all funds provided under such grant are expended, submit a 

report to the Secretary that contains a list of all expenditures made 

by such State or local government using funds from such grant. 

SEC. 703. TRUCKING SECURITY. 

(a) LEGAL STATUS VERIFICATION FOR LICENSED UNITED STATES

COMMERCIAL DRIVERS.—Not later than 18 months after the date of 

the enactment of this Act, the Secretary of Transportation, in cooperation with the Secretary, shall issue regulations to implement 

the recommendations contained in the memorandum of the Inspector General of the Department of Transportation issued on June 4, 

2004 (Control No. 2004–054). 

(b) COMMERCIAL DRIVER’S LICENSE ANTIFRAUD PROGRAMS.—

Not later than 18 months after the date of the enactment of this Act, 

the Secretary of Transportation, in cooperation with the Secretary, 

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tion Oversight of the Commercial Driver’s License Program (MH– 2006–037). 

(c) VERIFICATION OF COMMERCIAL MOTOR VEHICLE TRAFFIC.— (1) GUIDELINES.—Not later than 18 months after the date 

of the enactment of this Act, the Secretary, in consultation with 

the Secretary of Transportation, shall draft guidelines for Federal, State, and local law enforcement officials, including motor 

carrier safety enforcement personnel, on how to identify noncompliance with Federal laws uniquely applicable to commercial motor vehicles and commercial motor vehicle operators engaged in cross-border traffic and communicate such noncompliance to the appropriate Federal authorities. Such guidelines 

shall be coordinated with the training and outreach activities 

of the Federal Motor Carrier Safety Administration under section 4139 of SAFETEA–LU (Public Law 109–59). 

(2) VERIFICATION.—Not later than 18 months after the date 

of the enactment of this Act, the Administrator of the Federal 

Motor Carrier Safety Administration shall modify the final rule 

regarding the enforcement of operating authority (Docket No. 

FMCSA–2002–13015) to establish a system or process by which 

a carrier’s operating authority can be verified during a roadside 

inspection. 

SEC. 704. AIR AND MARINE OPERATIONS OF THE NORTHERN BORDER 

AIR WING. 

In addition to any other amounts authorized to be appropriated 

for Air and Marine Operations of United States Customs and Border Protection for fiscal year 2008, there are authorized to be appropriated such sums as may be necessary for operation expenses and 

aviation assets, for primary and secondary sites, of the Northern 

Border Air Wing Branch in Great Falls, Montana. 

SEC. 705. PHASEOUT OF VESSELS SUPPORTING OIL AND GAS DEVELOPMENT. 

(a) IN GENERAL.—Notwithstanding section 12105(c) of title 46, 

United States Code, a foreign-flag vessel may be chartered by, or on 

behalf of, a lessee to be employed for the setting, relocation, or recovery of anchors or other mooring equipment of a mobile offshore 

drilling unit that is located over the Outer Continental Shelf (as defined in section 2(a) of the Outer Continental Shelf Lands Act (43 

U.S.C. 1331(a)) for operations in support of exploration, or flow-testing and stimulation of wells, for offshore mineral or energy resources in the Beaufort Sea or the Chukchi Sea adjacent to Alaska— (1) until December 31, 2009, if the Secretary of Transportation determines after publishing notice in the Federal Register, that insufficient vessels documented under section 

12105(c) of title 46, United States Code, are reasonably available and suitable for these support operations and all such reasonably available and suitable vessels are employed in support 

of such operations; and 

(2) for an additional 2-year period beginning January 1, 

2010, if the Secretary of Transportation determines — (A) as of December 31, 2009, the lessee has entered into 

a binding agreement to employ an eligible vessel or vessels 

to be documented under section 12105(c) of title 46, United 

States Code, in sufficient numbers and with sufficient suitVerDate Aug 31 2005 03:37 Oct 04, 2006 Jkt 049006 PO 00000 Frm 00062 Fmt 6659 Sfmt 6603 E:\HR\OC\HR711.XXX HR711

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ability to replace any vessel or vessels operating under this 

section; and 

(B) after publishing notice in the Federal Register, that 

insufficient vessels documented under section 12105(c) of 

title 46, United States Code, are reasonably available and 

suitable for these support operations and all such reasonably available and suitable vessels are employed in support 

of such operations. 

(b) LESSEE DEFINED.—In this section, the term ‘‘lessee’’ means 

the holder of a lease (as defined in section 1331(c) of title 43, United 

States Code). 

(c) SAVINGS PROVISION.—Nothing in subsection (a) may be construed to authorize the employment in the coastwise trade of a vessel 

that does not meet the requirements of section 12106 of title 46, 

United States Code. 

SEC. 706. COAST GUARD PROPERTY IN PORTLAND, MAINE. 

Section 347(c) of the Maritime Transportation Security Act of 

2002 (Public Law 107–295; 116 Stat. 2109) is amended by striking 

‘‘within 30 months from the date of conveyance’’ and inserting ‘‘by 

December 31, 2009’’. 

SEC. 707. METHAMPHETAMINE AND METHAMPHETAMINE PRECURSOR 

CHEMICALS. 

(a) COMPLIANCE WITH PERFORMANCE PLAN REQUIREMENTS.—

As part of the annual performance plan required in the budget submission of the United States Customs and Border Protection under 

section 1115 of title 31, United States Code, the Commissioner shall 

establish performance indicators relating to the seizure of methamphetamine and methamphetamine precursor chemicals in order 

to evaluate the performance goals of the United States Customs and 

Border Protection with respect to the interdiction of illegal drugs entering the United States. 

(b) STUDY AND REPORT RELATING TO METHAMPHETAMINE AND

METHAMPHETAMINE PRECURSOR CHEMICALS.—

(1) ANALYSIS.—The Commissioner shall, on an ongoing 

basis, analyze the movement of methamphetamine and methamphetamine precursor chemicals into the United States. In 

conducting the analysis, the Commissioner shall—

(A) consider the entry of methamphetamine and methamphetamine precursor chemicals through ports of entry, 

between ports of entry, through international mails, and 

through international courier services; 

(B) examine the export procedures of each foreign country where the shipments of methamphetamine and methamphetamine precursor chemicals originate and determine 

if changes in the country’s customs over time provisions 

would alleviate the export of methamphetamine and methamphetamine precursor chemicals; and 

(C) identify emerging trends in smuggling techniques 

and strategies. 

(2) REPORT.—Not later than September 30, 2007, and each 

2-year period thereafter, the Commissioner, in the consultation 

with the Attorney General, United States Immigration and Customs Enforcement, the United States Drug Enforcement Administration, and the United States Department of State, shall subVerDate Aug 31 2005 03:37 Oct 04, 2006 Jkt 049006 PO 00000 Frm 00063 Fmt 6659 Sfmt 6603 E:\HR\OC\HR711.XXX HR711

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mit a report to the Committee on Finance of the Senate, the 

Committee on Foreign Relations of the Senate, the Committee 

on the Judiciary of the Senate, the Committee on Ways and 

Means of the House of Representatives, the Committee on International Relations of the House of Representatives, and the 

Committee on the Judiciary of the House of Representatives, 

that includes—

(A) a comprehensive summary of the analysis described 

in paragraph (1); and 

(B) a description of how the Untied States Customs 

and Border Protection utilized the analysis described in 

paragraph (1) to target shipments presenting a high risk 

for smuggling or circumvention of the Combat Methamphetamine Epidemic Act of 2005 (Public Law 109–177). 

(3) AVAILABILITY OF ANALYSIS.—The Commissioner shall 

ensure that the analysis described in paragraph (1) is made 

available in a timely manner to the Secretary of State to facilitate the Secretary in fulfilling the Secretary’s reporting requirements in section 722 of the Combat Methamphetamine Epidemic Act of 2005. 

(c) DEFINITION.—In this section, the term ‘‘methamphetamine 

precursor chemicals’’ means the chemicals ephedrine, 

pseudoephedrine, or phenylpropanolamine, including each of the 

salts, optical isomers, and salts of optical isomers of such chemicals. 

SEC. 708. AIRCRAFT CHARTER CUSTOMER AND LESSEE 

PRESCREENING PROGRAM. 

(a) IMPLEMENTATION STATUS.—Not later than 270 days after 

the implementation of the Department’s aircraft charter customer 

and lessee prescreening process required under section 44903(j)(2) of 

title 49, United States Code, the Comptroller General of the United 

States shall—

(1) assess the status and implementation of the program 

and the use of the program by the general aviation charter and 

rental community; and 

(2) submit a report containing the findings, conclusions, 

and recommendations, if any, of such assessment to—

(A) the Committee on Commerce, Science, and Transportation of the Senate; 

(B) the Committee on Homeland Security of the House 

of Representatives; and 

(C) the Committee on Transportation and Infrastructure of the House of Representatives. 

SEC. 709. PROTECTION OF HEALTH AND SAFETY DURING DISASTERS. 

(a) DEFINITIONS.—In this section: 

(1) CERTIFIED MONITORING PROGRAM.—The term ‘‘certified 

monitoring program’’ means a medical monitoring program—

(A) in which a participating responder is a participant 

as a condition of the employment of such participating responder; and 

(B) that the Secretary of Health and Human Services 

certifies includes an adequate baseline medical screening. 

(2) DISASTER AREA.—The term ‘‘disaster area’’ means an 

area in which the President has declared a major disaster (as 

that term is defined in section 102 of the Robert T. Stafford 


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Disaster Relief and Emergency Assistance Act (42 U.S.C. 

5122)), during the period of such declaration. 

(3) HIGH EXPOSURE LEVEL.—The term ‘‘high exposure level’’

means a level of exposure to a substance of concern that is for 

such a duration, or of such a magnitude, that adverse effects 

on human health can be reasonably expected to occur, as determined by the President, acting through the Secretary of Health 

and Human Services, in accordance with human monitoring or 

environmental or other appropriate indicators. 

(4) INDIVIDUAL.—The term ‘‘individual’’ includes—

(A) a worker or volunteer who responds to a disaster, 

either natural or manmade, involving any mode of transportation in the United States or disrupting the transportation system of the United States, including—

(i) a police officer; 

(ii) a firefighter; 

(iii) an emergency medical technician; 

(iv) any participating member of an urban search 

and rescue team; and 

(v) any other relief or rescue worker or volunteer 

that the President, acting through the Secretary of 

Health and Human Services, determines to be appropriate; 

(B) a worker who responds to a disaster, either natural 

or manmade, involving any mode of transportation in the 

United States or disrupting the transportation system of 

the United States, by assisting in the cleanup or restoration 

of critical infrastructure in and around a disaster area; 

(C) a person whose place of residence is in a disaster 

area, caused by either a natural or manmade disaster involving any mode of transportation in the United States or 

disrupting the transportation system of the United States; 

(D) a person who is employed in or attends school, 

child care, or adult day care in a building located in a disaster area, caused by either a natural or manmade disaster 

involving any mode of transportation in the United States 

or disrupting the transportation system of the United 

States, of the United States; and 

(E) any other person that the President, acting through 

the Secretary of Health and Human Services, determines to 

be appropriate. 

(5) PARTICIPATING RESPONDER.—The term ‘‘participating 

responder’’ means an individual described in paragraph (4)(A). 

(6) PROGRAM.—The term ‘‘program’’ means a program described in subsection (b) that is carried out for a disaster area. 

(7) SUBSTANCE OF CONCERN.—The term ‘‘substance of concern’’ means a chemical or other substance that is associated 

with potential acute or chronic human health effects, the risk 

of exposure to which could potentially be increased as the result 

of a disaster, as determined by the President, acting through 

the Secretary of Health and Human Services, and in coordination with the Agency for Toxic Substances and Disease Registry, 

the Environmental Protection Agency, the Centers for Disease 

Control and Prevention, the National Institutes of Health, the 


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Federal Emergency Management Agency, the Occupational 

Health and Safety Administration, and other agencies. 

(b) PROGRAM.—

(1) IN GENERAL.—If the President, acting through the Secretary of Health and Human Services, determines that 1 or 

more substances of concern are being, or have been, released in 

an area declared to be a disaster area and disrupts the transportation system of the United States, the President, acting 

through the Secretary of Health and Human Services, may 

carry out a program for the coordination, protection, assessment, monitoring, and study of the health and safety of individuals with high exposure levels to ensure that—

(A) the individuals are adequately informed about and 

protected against potential health impacts of any substance 

of concern in a timely manner; 

(B) the individuals are monitored and studied over 

time, including through baseline and followup clinical 

health examinations, for—

(i) any short- and long-term health impacts of any 

substance of concern; and 

(ii) any mental health impacts; 

(C) the individuals receive health care referrals as 

needed and appropriate; and 

(D) information from any such monitoring and studies 

is used to prevent or protect against similar health impacts 

from future disasters. 

(2) ACTIVITIES.—A program under paragraph (1) may include such activities as—

(A) collecting and analyzing environmental exposure 

data; 

(B) developing and disseminating information and 

educational materials; 

(C) performing baseline and followup clinical health 

and mental health examinations and taking biological 

samples; 

(D) establishing and maintaining an exposure registry; 

(E) studying the short- and long-term human health 

impacts of any exposures through epidemiological and 

other health studies; and 

(F) providing assistance to individuals in determining 

eligibility for health coverage and identifying appropriate 

health services. 

(3) TIMING.—To the maximum extent practicable, activities 

under any program carried out under paragraph (1) (including 

baseline health examinations) shall be commenced in a timely 

manner that will ensure the highest level of public health protection and effective monitoring. 

(4) PARTICIPATION IN REGISTRIES AND STUDIES.—

(A) IN GENERAL.—Participation in any registry or 

study that is part of a program carried out under paragraph (1) shall be voluntary. 

(B) PROTECTION OF PRIVACY.—The President, acting 

through the Secretary of Health and Human Services, shall 

take appropriate measures to protect the privacy of any parVerDate Aug 31 2005 03:37 Oct 04, 2006 Jkt 049006 PO 00000 Frm 00066 Fmt 6659 Sfmt 6603 E:\HR\OC\HR711.XXX HR711

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ticipant in a registry or study described in subparagraph 

(A). 

(C) PRIORITY.—

(i) IN GENERAL.—Except as provided in clause (ii), 

the President, acting through the Secretary of Health 

and Human Services, shall give priority in any registry 

or study described in subparagraph (A) to the protection, monitoring and study of the health and safety of 

individuals with the highest level of exposure to a substance of concern. 

(ii) MODIFICATIONS.—Notwithstanding clause (i), 

the President, acting through the Secretary of Health 

and Human Services, may modify the priority of a registry or study described in subparagraph (A), if the 

President, acting through the Secretary of Health and 

Human Services, determines such modification to be 

appropriate. 

(5) COOPERATIVE AGREEMENTS.—

(A) IN GENERAL.—The President, acting through the 

Secretary of Health and Human Services, may carry out a 

program under paragraph (1) through a cooperative agreement with a medical institution, including a local health 

department, or a consortium of medical institutions. 

(B) SELECTION CRITERIA.—To the maximum extent 

practicable, the President, acting through the Secretary of 

Health and Human Services, shall select, to carry out a 

program under paragraph (1), a medical institution or a 

consortium of medical institutions that—

(i) is located near—

(I) the disaster area with respect to which the 

program is carried out; and 

(II) any other area in which there reside 

groups of individuals that worked or volunteered 

in response to the disaster; and 

(ii) has appropriate experience in the areas of environmental or occupational health, toxicology, and safety, including experience in—

(I) developing clinical protocols and conducting clinical health examinations, including 

mental health assessments; 

(II) conducting long-term health monitoring 

and epidemiological studies; 

(III) conducting long-term mental health studies; and 

(IV) establishing and maintaining medical 

surveillance programs and environmental exposure 

or disease registries. 

(6) INVOLVEMENT.—

(A) IN GENERAL.—In carrying out a program under 

paragraph (1), the President, acting through the Secretary 

of Health and Human Services, shall involve interested and 

affected parties, as appropriate, including representatives 

of—

(i) Federal, State, and local government agencies; 


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(ii) groups of individuals that worked or volunteered in response to the disaster in the disaster area; 

(iii) local residents, businesses, and schools (including parents and teachers); 

(iv) health care providers; 

(v) faith based organizations; and 

(vi) other organizations and persons. 

(B) COMMITTEES.—Involvement under subparagraph 

(A) may be provided through the establishment of an advisory or oversight committee or board. 

(7) PRIVACY.—The President, acting through the Secretary 

of Health and Human Services, shall carry out each program 

under paragraph (1) in accordance with regulations relating to 

privacy promulgated under section 264(c) of the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. 

1320d–2 note; Public Law 104–191). 

(8) EXISTING PROGRAMS.—In carrying out a program under 

paragraph (1), the President, acting through the Secretary of 

Health and Human Services, may—

(A) include the baseline clinical health examination of 

a participating responder under a certified monitoring programs; and 

(B) substitute the baseline clinical health examination 

of a participating responder under a certified monitoring 

program for a baseline clinical health examination under 

paragraph (1). 

(c) REPORTS.—Not later than 1 year after the establishment of 

a program under subsection (b)(1), and every 5 years thereafter, the 

President, acting through the Secretary of Health and Human Services, or the medical institution or consortium of such institutions 

having entered into a cooperative agreement under subsection (b)(5), 

may submit a report to the Secretary of Homeland Security, the Secretary of Labor, the Administrator of the Environmental Protection 

Agency, and appropriate committees of Congress describing the programs and studies carried out under the program. 

(d) NATIONAL ACADEMY OF SCIENCES REPORT ON DISASTER

AREA HEALTH AND ENVIRONMENTAL PROTECTION AND MONI- TORING.—

(1) IN GENERAL.—The Secretary of Health and Human 

Services, the Secretary of Homeland Security, and the Administrator of the Environmental Protection Agency shall jointly 

enter into a contract with the National Academy of Sciences to 

conduct a study and prepare a report on disaster area health 

and environmental protection and monitoring. 

(2) PARTICIPATION OF EXPERTS.—The report under paragraph (1) shall be prepared with the participation of individuals who have expertise in—

(A) environmental health, safety, and medicine; 

(B) occupational health, safety, and medicine; 

(C) clinical medicine, including pediatrics; 

(D) environmental toxicology; 

(E) epidemiology; 

(F) mental health; 

(G) medical monitoring and surveillance; 

(H) environmental monitoring and surveillance; 


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69 

(I) environmental and industrial hygiene; 

(J) emergency planning and preparedness; 

(K) public outreach and education; 

(L) State and local health departments; 

(M) State and local environmental protection departments; 

(N) functions of workers that respond to disasters, including first responders; 

(O) public health; and 

(P) family services, such as counseling and other disaster-related services provided to families. 

(3) CONTENTS.—The report under paragraph (1) shall provide advice and recommendations regarding protecting and 

monitoring the health and safety of individuals potentially exposed to any chemical or other substance associated with potential acute or chronic human health effects as the result of a disaster, including advice and recommendations regarding—

(A) the establishment of protocols for monitoring and 

responding to chemical or substance releases in a disaster 

area to protect public health and safety, including—

(i) chemicals or other substances for which samples 

should be collected in the event of a disaster, including 

a terrorist attack; 

(ii) chemical- or substance-specific methods of sample collection, including sampling methodologies and 

locations; 

(iii) chemical- or substance-specific methods of 

sample analysis; 

(iv) health-based threshold levels to be used and 

response actions to be taken in the event that thresholds are exceeded for individual chemicals or other 

substances; 

(v) procedures for providing monitoring results 

to—

(I) appropriate Federal, State, and local government agencies; 

(II) appropriate response personnel; and 

(III) the public; 

(vi) responsibilities of Federal, State, and local 

agencies for—

(I) collecting and analyzing samples; 

(II) reporting results; and 

(III) taking appropriate response actions; and 

(vii) capabilities and capacity within the Federal 

Government to conduct appropriate environmental 

monitoring and response in the event of a disaster, including a terrorist attack; and 

(B) other issues specified by the Secretary of Health 

and Human Services, the Secretary of Homeland Security, 

and the Administrator of the Environmental Protection 

Agency. 

(4) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums as are necessary to carry out 

this subsection. 


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TITLE VIII—UNLAWFUL INTERNET GAMBLING 

ENFORCEMENT 

SEC. 801. SHORT TITLE. 

This title may be cited as the ‘‘Unlawful Internet Gambling Enforcement Act of 2006’’. 

SEC. 802. PROHIBITION ON ACCEPTANCE OF ANY PAYMENT INSTRUMENT FOR UNLAWFUL INTERNET GAMBLING. 

(a) IN GENERAL.—Chapter 53 of title 31, United States Code, is 

amended by adding at the end the following: 

‘‘SUBCHAPTER IV—PROHIBITION ON FUNDING OF 

UNLAWFUL INTERNET GAMBLING 

‘‘§ 5361. Congressional findings and purpose 

‘‘(a) FINDINGS.—Congress finds the following: 

‘‘(1) Internet gambling is primarily funded through personal use of payment system instruments, credit cards, and 

wire transfers. 

‘‘(2) The National Gambling Impact Study Commission in 

1999 recommended the passage of legislation to prohibit wire 

transfers to Internet gambling sites or the banks which represent such sites. 

‘‘(3) Internet gambling is a growing cause of debt collection 

problems for insured depository institutions and the consumer 

credit industry. 

‘‘(4) New mechanisms for enforcing gambling laws on the 

Internet are necessary because traditional law enforcement 

mechanisms are often inadequate for enforcing gambling prohibitions or regulations on the Internet, especially where such 

gambling crosses State or national borders. 

‘‘(b) RULE OF CONSTRUCTION.—No provision of this subchapter 

shall be construed as altering, limiting, or extending any Federal or 

State law or Tribal-State compact prohibiting, permitting, or regulating gambling within the United States. 

‘‘§ 5362. Definitions 

‘‘In this subchapter: ‘‘(1) BET OR WAGER.—The term ‘bet or wager’—

‘‘(A) means the staking or risking by any person of 

something of value upon the outcome of a contest of others, 

a sporting event, or a game subject to chance, upon an 

agreement or understanding that the person or another person will receive something of value in the event of a certain 

outcome; 

‘‘(B) includes the purchase of a chance or opportunity 

to win a lottery or other prize (which opportunity to win is 

predominantly subject to chance); 

‘‘(C) includes any scheme of a type described in section 

3702 of title 28; 

‘‘(D) includes any instructions or information pertaining to the establishment or movement of funds by the 

bettor or customer in, to, or from an account with the business of betting or wagering; and 

‘‘(E) does not include—


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‘‘(i) any activity governed by the securities laws (as 

that term is defined in section 3(a)(47) of the Securities 

Exchange Act of 1934 for the purchase or sale of securities (as that term is defined in section 3(a)(10) of that 

Act); 

‘‘(ii) any transaction conducted on or subject to the 

rules of a registered entity or exempt board of trade 

under the Commodity Exchange Act; 

‘‘(iii) any over-the-counter derivative instrument; 

‘‘(iv) any other transaction that—

‘‘(I) is excluded or exempt from regulation 

under the Commodity Exchange Act; or 

‘‘(II) is exempt from State gaming or bucket 

shop laws under section 12(e) of the Commodity 

Exchange Act or section 28(a) of the Securities Exchange Act of 1934; 

‘‘(v) any contract of indemnity or guarantee; 

‘‘(vi) any contract for insurance; 

‘‘(vii) any deposit or other transaction with an insured depository institution; 

‘‘(viii) participation in any game or contest in 

which participants do not stake or risk anything of 

value other than—

‘‘(I) personal efforts of the participants in playing the game or contest or obtaining access to the 

Internet; or 

‘‘(II) points or credits that the sponsor of the 

game or contest provides to participants free of 

charge and that can be used or redeemed only for 

participation in games or contests offered by the 

sponsor; or 

‘‘(ix) participation in any fantasy or simulation 

sports game or educational game or contest in which (if 

the game or contest involves a team or teams) no fantasy or simulation sports team is based on the current 

membership of an actual team that is a member of an 

amateur or professional sports organization (as those 

terms are defined in section 3701 of title 28) and that 

meets the following conditions: 

‘‘(I) All prizes and awards offered to winning 

participants are established and made known to 

the participants in advance of the game or contest 

and their value is not determined by the number 

of participants or the amount of any fees paid by 

those participants. 

‘‘(II) All winning outcomes reflect the relative 

knowledge and skill of the participants and are determined predominantly by accumulated statistical 

results of the performance of individuals (athletes 

in the case of sports events) in multiple real-world 

sporting or other events. 

‘‘(III) No winning outcome is based—

‘‘(aa) on the score, point-spread, or any 

performance or performances of any single 


jcorcoran on PRODPC62 with REPORTS
72 

real-world team or any combination of such 

teams; or ‘‘(bb) solely on any single performance of 

an individual athlete in any single real-world 

sporting or other event. ‘‘(2) BUSINESS OF BETTING OR WAGERING.—The term ‘business of betting or wagering’ does not include the activities of a 

financial transaction provider, or any interactive computer service or telecommunications service. ‘‘(3) DESIGNATED PAYMENT SYSTEM.—The term ‘designated 

payment system’ means any system utilized by a financial 

transaction provider that the Secretary and the Board of Governors of the Federal Reserve System, in consultation with the 

Attorney General, jointly determine, by regulation or order, 

could be utilized in connection with, or to facilitate, any restricted transaction. ‘‘(4) FINANCIAL TRANSACTION PROVIDER.—The term ‘financial transaction provider’ means a creditor, credit card issuer, 

financial institution, operator of a terminal at which an electronic fund transfer may be initiated, money transmitting business, or international, national, regional, or local payment network utilized to effect a credit transaction, electronic fund 

transfer, stored value product transaction, or money transmitting service, or a participant in such network, or other participant in a designated payment system. 

‘‘(5) INTERNET.—The term ‘Internet’ means the international computer network of interoperable packet switched 

data networks. ‘‘(6) INTERACTIVE COMPUTER SERVICE.—The term ‘interactive computer service’ has the meaning given the term in section 230(f) of the Communications Act of 1934 (47 U.S.C. 

230(f)). 

‘‘(7) RESTRICTED TRANSACTION.—The term ‘restricted transaction’ means any transaction or transmittal involving any 

credit, funds, instrument, or proceeds described in any paragraph of section 5363 which the recipient is prohibited from accepting under section 5363. ‘‘(8) SECRETARY.—The term ‘Secretary’ means the Secretary 

of the Treasury. ‘‘(9) STATE.—The term ‘State’ means any State of the 

United States, the District of Columbia, or any commonwealth, 

territory, or other possession of the United States. 

‘‘(10) UNLAWFUL INTERNET GAMBLING.—

‘‘(A) IN GENERAL.—The term ‘unlawful Internet gambling’ means to place, receive, or otherwise knowingly 

transmit a bet or wager by any means which involves the 

use, at least in part, of the Internet where such bet or wager 

is unlawful under any applicable Federal or State law in 

the State or Tribal lands in which the bet or wager is initiated, received, or otherwise made. ‘‘(B) INTRASTATE TRANSACTIONS.—The term ‘unlawful 

Internet gambling’ does not include placing, receiving, or 

otherwise transmitting a bet or wager where— ‘‘(i) the bet or wager is initiated and received or 

otherwise made exclusively within a single State; 


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73 

‘‘(ii) the bet or wager and the method by which the 

bet or wager is initiated and received or otherwise 

made is expressly authorized by and placed in accordance with the laws of such State, and the State law or 

regulations include— ‘‘(I) age and location verification requirements 

reasonably designed to block access to minors and 

persons located out of such State; and ‘‘(II) appropriate data security standards to 

prevent unauthorized access by any person whose 

age and current location has not been verified in 

accordance with such State’s law or regulations; 

and 

‘‘(iii) the bet or wager does not violate any provision of—

‘‘(I) the Interstate Horseracing Act of 1978 (15 

U.S.C. 3001 et seq.); ‘‘(II) chapter 178 of title 28 (commonly known 

as the ‘Professional and Amateur Sports Protection 

Act’); 

‘‘(III) the Gambling Devices Transportation 

Act (15 U.S.C. 1171 et seq.); or ‘‘(IV) the Indian Gaming Regulatory Act (25 

U.S.C. 2701 et seq.). ‘‘(C) INTRATRIBAL TRANSACTIONS.—The term ‘unlawful 

Internet gambling’ does not include placing, receiving, or 

otherwise transmitting a bet or wager where— ‘‘(i) the bet or wager is initiated and received or 

otherwise made exclusively— ‘‘(I) within the Indian lands of a single Indian 

tribe (as such terms are defined under the Indian 

Gaming Regulatory Act; or ‘‘(II) between the Indian lands of 2 or more Indian tribes to the extent that intertribal gaming is 

authorized by the Indian Gaming Regulatory Act; 

‘‘(ii) the bet or wager and the method by which the 

bet or wager is initiated and received or otherwise 

made is expressly authorized by and complies with the 

requirements of—

‘‘(I) the applicable tribal ordinance or resolution approved by the Chairman of the National Indian Gaming Commission; and 

‘‘(II) with respect to class III gaming, the applicable Tribal-State Compact; 

‘‘(iii) the applicable tribal ordinance or resolution 

or Tribal-State compact includes—

‘‘(I) age and location verification requirements 

reasonably designed to block access to minors and 

persons located out of the applicable Tribal lands; 

and 

‘‘(II) appropriate data security standards to 

prevent unauthorized access by any person whose 

age and current location has not been verified in 

accordance with the applicable tribal ordinance or 

resolution or Tribal-State Compact; and 


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‘‘(iv) the bet or wager does not violate any provision of—

‘‘(I) the Interstate Horseracing Act of 1978 (15 

U.S.C. 3001 et seq.); 

‘‘(II) chapter 178 of title 28 (commonly known 

as the ‘Professional and Amateur Sports Protection 

Act’); 

‘‘(III) the Gambling Devices Transportation 

Act (15 U.S.C. 1171 et seq.); or 

‘‘(IV) the Indian Gaming Regulatory Act (25 

U.S.C. 2701 et seq.). 

‘‘(D) INTERSTATE HORSERACING.—

‘‘(i) IN GENERAL.—The term ‘unlawful Internet 

gambling’ shall not include any activity that is allowed 

under the Interstate Horseracing Act of 1978 (15 

U.S.C. 3001 et seq.). 

‘‘(ii) RULE OF CONSTRUCTION REGARDING PREEMPTION.—Nothing in this subchapter may be construed to 

preempt any State law prohibiting gambling. 

‘‘(iii) SENSE OF CONGRESS.—It is the sense of Congress that this subchapter shall not change which activities related to horse racing may or may not be allowed under Federal law. This subparagraph is intended to address concerns that this subchapter could 

have the effect of changing the existing relationship between the Interstate Horseracing Act and other Federal 

statutes in effect on the date of the enactment of this 

subchapter. This subchapter is not intended to change 

that relationship. This subchapter is not intended to 

resolve any existing disagreements over how to interpret the relationship between the Interstate Horseracing Act and other Federal statutes. 

‘‘(E) INTERMEDIATE ROUTING.—The intermediate routing of electronic data shall not determine the location or locations in which a bet or wager is initiated, received, or 

otherwise made. 

‘‘(11) OTHER TERMS.—

‘‘(A) CREDIT; CREDITOR; CREDIT CARD; AND CARD

ISSUER.—The terms ‘credit’, ‘creditor’, ‘credit card’, and 

‘card issuer’ have the meanings given the terms in section 

103 of the Truth in Lending Act (15 U.S.C. 1602). 

‘‘(B) ELECTRONIC FUND TRANSFER.—The term ‘electronic fund transfer’—

‘‘(i) has the meaning given the term in section 903 

of the Electronic Fund Transfer Act (15 U.S.C. 1693a), 

except that the term includes transfers that would otherwise be excluded under section 903(6)(E) of that Act; 

and 

‘‘(ii) includes any fund transfer covered by Article 

4A of the Uniform Commercial Code, as in effect in any 

State. 

‘‘(C) FINANCIAL INSTITUTION.—The term ‘financial institution’ has the meaning given the term in section 903 of 

the Electronic Fund Transfer Act, except that such term 


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does not include a casino, sports book, or other business at 

or through which bets or wagers may be placed or received. ‘‘(D) INSURED DEPOSITORY INSTITUTION.—The term ‘insured depository institution’— ‘‘(i) has the meaning given the term in section 3(c) 

of the Federal Deposit Insurance Act (12 U.S.C. 

1813(c)); and ‘‘(ii) includes an insured credit union (as defined 

in section 101 of the Federal Credit Union Act). 

‘‘(E) MONEY TRANSMITTING BUSINESS AND MONEY

TRANSMITTING SERVICE.—The terms ‘money transmitting 

business’ and ‘money transmitting service’ have the meanings given the terms in section 5330(d) (determined without 

regard to any regulations prescribed by the Secretary thereunder). 

‘‘§ 5363. Prohibition on acceptance of any financial instrument for unlawful Internet gambling 

‘‘No person engaged in the business of betting or wagering may 

knowingly accept, in connection with the participation of another 

person in unlawful Internet gambling— ‘‘(1) credit, or the proceeds of credit, extended to or on behalf of such other person (including credit extended through the 

use of a credit card); ‘‘(2) an electronic fund transfer, or funds transmitted by or 

through a money transmitting business, or the proceeds of an 

electronic fund transfer or money transmitting service, from or 

on behalf of such other person; ‘‘(3) any check, draft, or similar instrument which is drawn 

by or on behalf of such other person and is drawn on or payable 

at or through any financial institution; or ‘‘(4) the proceeds of any other form of financial transaction, 

as the Secretary and the Board of Governors of the Federal Reserve System may jointly prescribe by regulation, which involves a financial institution as a payor or financial intermediary on behalf of or for the benefit of such other person. 

‘‘§ 5364. Policies and procedures to identify and prevent restricted transactions 

‘‘(a) REGULATIONS.—Before the end of the 270-day period beginning on the date of the enactment of this subchapter, the Secretary 

and the Board of Governors of the Federal Reserve System, in consultation with the Attorney General, shall prescribe regulations 

(which the Secretary and the Board jointly determine to be appropriate) requiring each designated payment system, and all participants therein, to identify and block or otherwise prevent or prohibit 

restricted transactions through the establishment of policies and 

procedures reasonably designed to identify and block or otherwise 

prevent or prohibit the acceptance of restricted transactions in any 

of the following ways: ‘‘(1) The establishment of policies and procedures that— ‘‘(A) allow the payment system and any person involved 

in the payment system to identify restricted transactions by 

means of codes in authorization messages or by other 

means; and 


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‘‘(B) block restricted transactions identified as a result 

of the policies and procedures developed pursuant to subparagraph (A). 

‘‘(2) The establishment of policies and procedures that prevent or prohibit the acceptance of the products or services of the 

payment system in connection with a restricted transaction. 

‘‘(b) REQUIREMENTS FOR POLICIES AND PROCEDURES.—In prescribing regulations under subsection (a), the Secretary and the 

Board of Governors of the Federal Reserve System shall— ‘‘(1) identify types of policies and procedures, including 

nonexclusive examples, which would be deemed, as applicable, 

to be reasonably designed to identify and block or otherwise 

prevent or prohibit the acceptance of the products or services 

with respect to each type of restricted transaction; ‘‘(2) to the extent practical, permit any participant in a payment system to choose among alternative means of identifying 

and blocking, or otherwise preventing or prohibiting the acceptance of the products or services of the payment system or participant in connection with, restricted transactions; ‘‘(3) exempt certain restricted transactions or designated 

payment systems from any requirement imposed under such 

regulations, if the Secretary and the Board jointly find that it 

is not reasonably practical to identify and block, or otherwise 

prevent or prohibit the acceptance of, such transactions; and ‘‘(4) ensure that transactions in connection with any activity 

excluded from the definition of unlawful internet gambling in 

subparagraphs (B), (C), or (D)(i) of section 5362(10) are not 

blocked or otherwise prevented or prohibited by the prescribed 

regulations. 

‘‘(c) COMPLIANCE WITH PAYMENT SYSTEM POLICIES AND PROCE- DURES.—A financial transaction provider shall be considered to be 

in compliance with the regulations prescribed under subsection (a) 

if— ‘‘(1) such person relies on and complies with the policies 

and procedures of a designated payment system of which it is 

a member or participant to—

‘‘(A) identify and block restricted transactions; or 

‘‘(B) otherwise prevent or prohibit the acceptance of the 

products or services of the payment system, member, or participant in connection with restricted transactions; and 

‘‘(2) such policies and procedures of the designated payment 

system comply with the requirements of regulations prescribed 

under subsection (a). 

‘‘(d) NO LIABILITY FOR BLOCKING OR REFUSING TO HONOR RESTRICTED TRANSACTIONS.—A person that identifies and blocks a 

transaction, prevents or prohibits the acceptance of its products or 

services in connection with a transaction, or otherwise refuses to 

honor a transaction—

‘‘(1) that is a restricted transaction; 

‘‘(2) that such person reasonably believes to be a restricted 

transaction; or ‘‘(3) as a designated payment system or a member of a designated payment system in reliance on the policies and procedures of the payment system, in an effort to comply with regulations prescribed under subsection (a), 


jcorcoran on PRODPC62 with REPORTS
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shall not be liable to any party for such action. 

‘‘(e) REGULATORY ENFORCEMENT.—The requirements under this 

section shall be enforced exclusively by—

‘‘(1) the Federal functional regulators, with respect to the 

designated payment systems and financial transaction providers subject to the respective jurisdiction of such regulators 

under section 505(a) of the Gramm-Leach-Bliley Act and section 

5g of the Commodities Exchange Act; and 

‘‘(2) the Federal Trade Commission, with respect to designated payment systems and financial transaction providers 

not otherwise subject to the jurisdiction of any Federal functional regulators (including the Commission) as described in 

paragraph (1). 

‘‘§ 5365. Civil remedies 

‘‘(a) JURISDICTION.—In addition to any other remedy under current law, the district courts of the United States shall have original 

and exclusive jurisdiction to prevent and restrain restricted transactions by issuing appropriate orders in accordance with this section, regardless of whether a prosecution has been initiated under 

this subchapter. 

‘‘(b) PROCEEDINGS.—

‘‘(1) INSTITUTION BY FEDERAL GOVERNMENT.—

‘‘(A) IN GENERAL.—The United States, acting through 

the Attorney General, may institute proceedings under this 

section to prevent or restrain a restricted transaction. 

‘‘(B) RELIEF.—Upon application of the United States 

under this paragraph, the district court may enter a temporary restraining order, a preliminary injunction, or an 

injunction against any person to prevent or restrain a restricted transaction, in accordance with rule 65 of the Federal Rules of Civil Procedure. 

‘‘(2) INSTITUTION BY STATE ATTORNEY GENERAL.—

‘‘(A) IN GENERAL.—The attorney general (or other appropriate State official) of a State in which a restricted 

transaction allegedly has been or will be initiated, received, 

or otherwise made may institute proceedings under this section to prevent or restrain the violation or threatened violation. 

‘‘(B) RELIEF.—Upon application of the attorney general 

(or other appropriate State official) of an affected State 

under this paragraph, the district court may enter a temporary restraining order, a preliminary injunction, or an 

injunction against any person to prevent or restrain a restricted transaction, in accordance with rule 65 of the Federal Rules of Civil Procedure. 

‘‘(3) INDIAN LANDS.—

‘‘(A) IN GENERAL.—Notwithstanding paragraphs (1) 

and (2), for a restricted transaction that allegedly has been 

or will be initiated, received, or otherwise made on Indian 

lands (as that term is defined in section 4 of the Indian 

Gaming Regulatory Act)—

‘‘(i) the United States shall have the enforcement 

authority provided under paragraph (1); and 


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‘‘(ii) the enforcement authorities specified in an applicable Tribal-State compact negotiated under section 

11 of the Indian Gaming Regulatory Act (25 U.S.C. 

2710) shall be carried out in accordance with that compact. 

‘‘(B) RULE OF CONSTRUCTION.—No provision of this section shall be construed as altering, superseding, or otherwise affecting the application of the Indian Gaming Regulatory Act. 

‘‘(c) LIMITATION RELATING TO INTERACTIVE COMPUTER SERVICES.—

‘‘(1) IN GENERAL.—Relief granted under this section against 

an interactive computer service shall—

‘‘(A) be limited to the removal of, or disabling of access 

to, an online site violating section 5363, or a hypertext link 

to an online site violating such section, that resides on a 

computer server that such service controls or operates, except that the limitation in this subparagraph shall not 

apply if the service is subject to liability under this section 

under section 5367; 

‘‘(B) be available only after notice to the interactive 

computer service and an opportunity for the service to appear are provided; 

‘‘(C) not impose any obligation on an interactive computer service to monitor its service or to affirmatively seek 

facts indicating activity violating this subchapter; 

‘‘(D) specify the interactive computer service to which it 

applies; and 

‘‘(E) specifically identify the location of the online site 

or hypertext link to be removed or access to which is to be 

disabled. 

‘‘(2) COORDINATION WITH OTHER LAW.—An interactive computer service that does not violate this subchapter shall not be 

liable under section 1084(d) of title 18, except that the limitation in this paragraph shall not apply if an interactive computer service has actual knowledge and control of bets and wagers and—

‘‘(A) operates, manages, supervises, or directs an Internet website at which unlawful bets or wagers may be 

placed, received, or otherwise made or at which unlawful 

bets or wagers are offered to be placed, received, or otherwise made; or 

‘‘(B) owns or controls, or is owned or controlled by, any 

person who operates, manages, supervises, or directs an 

Internet website at which unlawful bets or wagers may be 

placed, received, or otherwise made, or at which unlawful 

bets or wagers are offered to be placed, received, or otherwise made. 

‘‘(d) LIMITATION ON INJUNCTIONS AGAINST REGULATED PERSONS.—Notwithstanding any other provision of this section, and 

subject to section 5367, no provision of this subchapter shall be construed as authorizing the Attorney General of the United States, or 

the attorney general (or other appropriate State official) of any State 

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action against any financial transaction provider, to the extent that 

the person is acting as a financial transaction provider. 

‘‘§ 5366. Criminal penalties 

‘‘(a) IN GENERAL.—Any person who violates section 5363 shall 

be fined under title 18, imprisoned for not more than 5 years, or 

both. 

‘‘(b) PERMANENT INJUNCTION.—Upon conviction of a person 

under this section, the court may enter a permanent injunction enjoining such person from placing, receiving, or otherwise making 

bets or wagers or sending, receiving, or inviting information assisting in the placing of bets or wagers. 

‘‘§ 5367. Circumventions prohibited 

‘‘Notwithstanding section 5362(2), a financial transaction provider, or any interactive computer service or telecommunications 

service, may be liable under this subchapter if such person has actual knowledge and control of bets and wagers, and—

‘‘(1) operates, manages, supervises, or directs an Internet 

website at which unlawful bets or wagers may be placed, received, or otherwise made, or at which unlawful bets or wagers 

are offered to be placed, received, or otherwise made; or 

‘‘(2) owns or controls, or is owned or controlled by, any person who operates, manages, supervises, or directs an Internet 

website at which unlawful bets or wagers may be placed, received, or otherwise made, or at which unlawful bets or wagers 

are offered to be placed, received, or otherwise made.’’. 

(b) TECHNICAL AND CONFORMING AMENDMENT.—The table of 

sections for chapter 53 of title 31, United States Code, is amended 

by adding at the end the following: 

‘‘SUBCHAPTER IV—PROHIBITION ON FUNDING OF UNLAWFUL INTERNET GAMBLING

‘‘5361. Congressional findings and purpose 

‘‘5362. Definitions 

‘‘5363. Prohibition on acceptance of any financial instrument for unlawful Internet 

gambling 

‘‘5364. Policies and procedures to identify and prevent restricted transactions 

‘‘5365. Civil remedies 

‘‘5366. Criminal penalties 

‘‘5367. Circumventions prohibited’’. 

SEC. 803. INTERNET GAMBLING IN OR THROUGH FOREIGN JURISDICTIONS. 

(a) IN GENERAL.—In deliberations between the United States 

Government and any foreign country on money laundering, corruption, and crime issues, the United States Government should—

(1) encourage cooperation by foreign governments and relevant international fora in identifying whether Internet gambling operations are being used for money laundering, corruption, or other crimes; 

(2) advance policies that promote the cooperation of foreign 

governments, through information sharing or other measures, 

in the enforcement of this Act; and 

(3) encourage the Financial Action Task Force on Money 

Laundering, in its annual report on money laundering 

typologies, to study the extent to which Internet gambling operations are being used for money laundering purposes. 


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(b) REPORT REQUIRED.—The Secretary of the Treasury shall 

submit an annual report to the Congress on any deliberations between the United States and other countries on issues relating to 

Internet gambling. 

And the Senate agree to the same. 

From the Committee on Homeland Security: 

PETER KING, 

DANIEL E. LUNGREN, 

JOHN LINDER, 

ROB SIMMONS, 

DAVID REICHERT, 

MICHAEL T. MCCAUL, 

DON YOUNG, 

BENNIE G. THOMPSON, 

LORETTA SANCHEZ, 

JANE HARMAN, 

BILL PASCRELL, Jr., 

From the Committee on Energy and Commerce: 

JOE BARTON, 

FRED UPTON, 

From the Committee on Transportation and Infrastructure: 

BILL SHUSTER, 

From the Committee on Science: 

SHERWOOD BOEHLERT, 

MIKE SODREL, 

CHARLIE MELANCON, 

From the Committee on Ways and Means: 

WM. THOMAS, 

E. CLAY SHAW, Jr., 

Managers on the Part of the House. 

From the Committee on Homeland Security and Governmental Affairs: 

SUSAN COLLINS, NORM COLEMAN, R.F. BENNETT, From the Committee on Commerce, Science, and Transportation: 

TED STEVENS, 

TRENT LOTT, 

KAY BAILEY HUTCHISON, 

From the Committee on Finance: 

CHUCK GRASSLEY, 

ORRIN HATCH, 

MAX BAUCUS, 

From the Committee on Banking, Housing, and Urban Affairs: 

RICHARD SHELBY, Managers on the Part of the Senate. 


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(81) 

JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF 

CONFERENCE 

The managers on the part of the House and the Senate at the 

Conference on the disagreeing votes of the two Houses on the 

amendment of the Senate to the bill (H.R. 4954), the ‘‘Security and 

Accountability for Every Port Act’’ or ‘‘SAFE Port Act,’’ to improve 

maritime and cargo security through enhanced layered defenses, 

and for other purposes, submit the following joint statement to the 

House and the Senate in explanation of the effect of the action 

agreed upon by the managers and recommended in the accompanying Conference report: 

The Senate amendment struck all of the House bill after the 

enacting clause and inserted a substitute text. 

The House recedes from its disagreement to the amendment of 

the Senate with an amendment that is a substitute for the House 

bill and the Senate amendment The differences between the House 

bill, the Senate amendment, and the substitute agreed to in Conference are noted below, except for clerical corrections, conforming 

changes made necessary by agreements reached by the Conferees, 

and minor drafting and clarifying changes. 

Section 1. Short title 

Section 1 of the House bill states that the Act may be cited as 

the ‘‘Security and Accountability for Every Port Act’’ or ‘‘SAFE Port 

Act.’’

Section 1 of the Senate amendment states that the Act may be 

cited as the ‘‘Port Security Improvement Act of 2006.’’

The Conference Report adopts the House provision so that the 

Act may be referred to as the ‘‘Security and Accountability for 

Every Port Act’’ or ‘‘SAFE Port Act.’’

Section 2. Definitions 

House Section 3 defines several terms that are used in this bill 

and are relevant to maritime and cargo security. ‘‘Appropriate Congressional Committees,’’ ‘‘Department,’’ ‘‘International Supply 

Chain,’’ and ‘‘Secretary’’ are defined. 

Senate Section 2 is used to define the following relevant terms: 

‘‘Appropriate Congressional Committees,’’ ‘‘Commercial Seaport 

Personnel,’’ ‘‘Commissioner,’’ ‘‘Container,’’ ‘‘Container Security Device,’’ ‘‘Department,’’ ‘‘Examination,’’ ‘‘Inspection,’’ ‘‘International 

Supply Chain,’’ ‘‘Radiation Detection Equipment,’’ ‘‘Scan,’’ ‘‘Screening,’’ ‘‘Search,’’ ‘‘Secretary,’’ ‘‘Transportation Disruption,’’ and 

‘‘Transportation Security Incident.’’

The Conference Report adopts the Senate provision with modifications to the definition of commercial seaport personnel. 


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82 

TITLE I—SECURITY OF UNITED STATES 

SEAPORTS 

Subtitle A—General Provisions 

Section 101. Area maritime transportation security plan to include 

salvage response plan 

Senate Section 101 amends the Maritime Transportation Security Act of 2002, (P.L. 107–295), to include a salvage response plan 

to identify equipment capable of restoring operational trade capacity and to ensure that waterways are cleared after a maritime 

transportation security incident. 

The House bill does not contain a comparable provision. 

The Conference Report adopts the Senate provision. 

Section 102. Requirements relating to maritime facility security 

plans 

Section 103 of the House bill amends the Maritime Transportation Security Act of 2002 (P.L. 107–295), by setting requirements 

for Facility Security Officers, including the requirement of citizenship for an individual having full authority to implement security 

actions at United States seaports. This section also authorizes the 

Secretary of the department in which the Coast Guard is operating 

to waive the citizenship requirement based on a complete background check of the individual and a review of all terrorist watch 

lists. 

Senate section 102 is a comparable provision. 

The Conference Report adopts the Senate provision. 

The Conferees agreed to clarify that facility security plans required under the Maritime Transportation Security Act of 2002 

(P.L. 107–295) must include provisions establishing and controlling 

access to secure areas of a vessel or facility by ‘‘persons’’ engaged 

in the surface transportation of intermodal containers in or out of 

a port facility. The Conferees intend for ‘‘persons’’ to include 

drayage companies. 

Section 103. Unannounced inspections of maritime facilities 

House Section 104 amends the Maritime Transportation Security Act of 2002 (P.L. 107–295) to authorize the Secretary of the department in which the Coast Guard is operating to verify the effectiveness of Area Maritime Security Plans by conducting at least 

two inspections of a facility per year, one of which shall be conducted without prior notice to the facility. 

Senate Section 103 is a comparable provision. 

The Conference Report adopts the Senate provision. 

Section 104. Transportation security card 

House Section 105 provides a timeline for implementation of 

the Transportation Worker Identification Credential (TWIC) Program and requires the interim name-based screening of individuals. 

Senate Section 104 is a comparable provision, which requires 

the Secretary of the department in which the Coast Guard is operating to ensure that individuals who have undergone the HazVerDate Aug 31 2005 03:37 Oct 04, 2006 Jkt 049006 PO 00000 Frm 00082 Fmt 6601 Sfmt 6601 E:\HR\OC\HR711.XXX HR711

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ardous Materials Endorsement (HME) or Merchant Mariner Document (MMD) background check are not required to pay additional 

fees related to a similar background check for a TWIC card. Additionally, the Senate provision provides for concurrent processing of 

an applicant for TWIC and MMD, a pilot program for vessel and 

facility card readers, and other clarifying edits. 

The Conference Report adopts the Senate provision, as modified. 

Section 105. Study to identify redundant background records checks 

Section 105 is based upon Senate Section 1113, which requires 

a study by the Comptroller General to identify redundancies in connection with Federal background checks. 

The House bill does not include a comparable provision. 

The Conference Report adopts the Senate provision, as modified to limit the scope of redundant background checks to those 

conducted by the Department of Homeland Security. 

Section 106. Prohibition of issuance of transportation security cards 

to persons convicted of certain felonies 

Section 105 of the Senate bill amends 46 U.S.C. 70105 to insert 

a list of permanent and interim disqualifying crimes for individuals 

applying for a Transportation Worker Identification Credential. 

The House bill does not include a comparable provision. 

The Conference Report adopts the Senate provision, as amended, which requires the Secretary of the department in which the 

Coast Guard is operating to permanently disqualify an individual 

applying for a transportation worker identification credential that 

have been found guilty, or not guilty by reason of insanity, of treason, espionage, sedition, or a crime listed in 18 U.S.C. 1138, or conspiracy to commit one of those crimes. 

Section 107. Long-Range vessel tracking 

House Section 108 establishes a deadline of April 1, 2007, for 

the Secretary of the department in which the Coast Guard is operating to develop and implement a long-range automated vessel 

tracking system for all vessels in United States territorial waters 

that are equipped with the Global Maritime Distress and Safety 

System or equivalent satellite technology. This section also authorizes the Secretary of Homeland Security to issue regulations to establish a voluntary long-range automated vessel tracking system 

for certain vessels. 

Senate Section 106 is a comparable provision. 

The Conference Report adopts the Senate provision. 

Section 108. Establishment of interagency operational centers for 

port security 

House Section 109, ‘‘Maritime Command Centers,’’ directs the 

Secretary of the department in which the Coast Guard is operating 

to consult with Federal, State, and local officials to establish an integrated network of virtual and physical maritime security command centers at appropriate United States seaports and maritime 

regions. These centers serve to enhance information sharing, facilitate operational coordination, and facilitate incident management 


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84 

and response. The provision further designates the Coast Guard 

Captain of the Port as the initial incident commander in the event 

of a transportation disruption. 

Senate Section 107, ‘‘Establishment of Interagency Operational 

Centers for Port Security,’’ is similar to House Section 109 and directs the Secretary of the Department in which the Coast Guard 

is operating to establish additional Interagency Operational Centers at all high priority ports within three years. These centers 

would serve to enhance information sharing, facilitate operational 

coordination, and facilitate incident management and response. 

The Conference Report adopts the Senate provision, as modified to include the House language, which designates the Coast 

Guard Captain of the Port as the initial incident commander in the 

event of a transportation security incident in the maritime domain. 

The Conferees would like to clarify that in determining what 

constitutes a ‘‘high-priority’’ port, the Secretary shall consider the 

following: the quantity of cargo that passes through the port annually, the port’s proximity to military or other national security assets, and the economic impact to the United States resulting from 

a catastrophic loss of that port. 

Section 109. Notice of arrival for foreign vessels on the outer continental shelf 

Section 108 of the Senate bill directs the Secretary of the department in which the Coast Guard is operating to update and finalize its rulemaking on Notice of Arrival for foreign vessels on the 

Outer Continental Shelf not later than 180 days after the date of 

the enactment of this Act. 

The House bill does not include a comparable provision. 

The Conference Report adopts the Senate provision. 

Section 110. Enhanced crewmember identification 

Section 107 of the House bill sets a deadline of May 15, 2007 

for the Secretary of the department in which the Coast Guard is 

operating, in consultation with the Attorney General of the United 

States and the Secretary of State, to require crewmembers on vessels calling at United States ports to carry and present on demand 

any identification that the Secretary deems necessary. This section 

also sets a deadline of May 15, 2007 for the Secretary of Homeland 

Security, in consultation with the Attorney General and the Secretary of State, to establish the proper forms and process to be 

used for identification and verification of crewmembers. 

The Senate bill contains no comparable provision. 

The Conference Report adopts the House provision, with a 

compromise to strike May 15, 2007, and extend the deadline to one 

year after the date of enactment. 

Subtitle B—Port Security Grants; Training and Exercise Programs 

Section 111. Risk assessment tool 

Section 111 was developed out of the Senate passed Section 

111, ‘‘Port Security Grants,’’ to require each Area Maritime Security Committee, under the direction of the Commandant of the 

Coast Guard, to develop a Port Wide Risk Management Plan that 


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includes security goals and objectives, a management selection 

process, and active monitoring to measure effectiveness. This section also requires the Secretary to make available a risk assessment tool that uses standardized risk criteria, such as the Maritime Security Risk Assessment Tool used by the Coast Guard, to 

develop the Port Wide Risk Management Plan. 

The House bill contains no comparable section. 

The Conference substitute adopts the Senate provision. 

Section 111 of the Conference agreement is based on Senate 

Section 111(b), and requires the Coast Guard to make available a 

risk assessment tool that uses standardized risk criteria, such as 

the Maritime Security Risk Assessment Tool used by the Coast 

Guard, to Area Maritime Security Committees for the purposes of 

updating Area Maritime Security Plans and in applying for grants 

under the port security grant program authorized pursuant to 46 

U.S.C. 70107. 

Section 112. Port security grants 

Section 111 of the House bill amends the Homeland Security 

Act of 2002 (P.L. 107–296) to authorize the Secretary to establish 

a port security grant program to allocate Federal financial assistance to United States seaports on the basis of risk and need. Grant 

funds under this section may be used for activities to implement 

Area Maritime Security Plans, remedy port security vulnerabilities, 

conduct exercises or training for the prevention and detection of, 

preparedness for, response to, or recovery from terrorist attacks, 

protect critical infrastructure against potential attack, and establish or enhance mechanisms for sharing terrorism threat information. Section 111 also authorizes $400 million for each of the Fiscal 

Years 2007 through 2012. 

Senate Section 111 amends 46 U.S.C. 70107 to require the Secretary of the Department in which the Coast Guard is operating to 

allocate grants based on risk, allow for letters of intent to be issued 

for multiple-year projects, and amends the authorized level of funding to $400 million for each of Fiscal Years 2007 through 2011. 

Further, the Senate bill modifies 46 U.S.C. 701017(i) to specifically 

authorize the research and development of container scanning technology on straddle cars and cranes at $70 million for each of Fiscal 

Years 2008 through 2009. 

The Conference Report adopts the Senate provision, as modified to strike the specific container scanning technology authorization, allow for the additional eligible costs of conducting training 

and exercises, and the cost of establishing mechanisms for sharing 

terrorism threat information. The Conference Report requires 

grants under this section to be awarded on the basis of risk. 

The Conferees note that ‘‘energy’’ was specifically included in 

language to take into consideration current and future ports with 

critical energy infrastructure, such as Port Fourchon and the Louisiana Offshore Oil Platform (LOOP). 

Section 113. Port security training program 

House Section 112 amends the Homeland Security Act of 2002 

(P.L. 107–296) to allow for the establishment of a training program 

to enhance the capabilities of United States commercial seaports to 


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prevent, prepare for, respond to, mitigate against, and recover from 

threatened or actual acts of terrorism, natural disasters, and other 

emergencies. The section also addresses requirements for the Program and the Secretary’s role in supporting the development, promulgation, and regular updating of national voluntary consensus 

standards for port security training. 

Senate Section 112 is a comparable provision. 

The Conference Report adopts the Senate provision. 

Section 114. Port security exercise program 

House Section 113 authorizes the Secretary, acting through the 

Under Secretary for Preparedness, and in coordination with the 

Commandant of the Coast Guard, to establish an exercise program 

to test and evaluate the capabilities of Federal, State, local and 

other relevant stakeholders to coordinate appropriate response and 

recovery from threats at commercial seaports. 

Senate Section 113 is a comparable provision. 

The Conference Report adopts the Senate provision. 

Section 115. Facility exercise requirements 

The Senate bill contains no comparable provision. 

The House bill contains no comparable provision. 

Section 115 of the Conference Report directs the Secretary of 

the department in which the Coast Guard is operating to require 

each high risk facility to conduct live or full scale exercises not less 

than once every two years in accordance with the facility security 

plan. 

Subtitle C—Port Operations. 

Section 121. Domestic radiation detection and imaging 

House Section 402 requires the Secretary to deploy nuclear 

and radiological detection systems at the 22 busiest United States 

seaports not later than September 30, 2007, and to utilize advanced technology tested in a pilot program also established in this 

section. Within 90 days, the Secretary must submit a strategy on 

the deployment of nuclear and radiological detection systems at all 

remaining maritime ports of entry including a risk-based deployment schedule, description of equipment to be used, standard operating procedures for examining containers, and evaluation of the 

health effects of using radiation equipment. Lastly, the provision 

requires the Director of the Domestic Nuclear Detection Office 

(DNDO) to coordinate with other appropriate Federal agencies to 

deploy nuclear and radiological detection systems at foreign ports. 

Senate Section 121 is comparable to House Section 402, and requires the Secretary of Homeland Security to develop a strategy for 

deployment of radiation detection capabilities and ensures that by 

December 31, 2007, all containers entering the United States, 

through the busiest 22 seaports, are scanned for radiation. Section 

121 also requires the Department of Homeland Security to submit 

a separate report on the feasibility of, and plan for, the development of equipment to detect other weapons of mass destruction including chemical and biological threats at all United States ports 

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curity to establish an Intermodal Rail Radiation Detection Test 

Center to identify and test concepts specific to the challenges posed 

by on-dock intermodal rail. 

The Conference Report adopts House Section 402, with modification. The Conferees agree that ‘‘shielded nuclear and radiological threat material’’ be inserted into subsection (e) as it relates 

to weapons of mass destruction threats. 

The Conferees note the progress made by the Department of 

Homeland Security in developing next general portal monitors with 

spectroscopic capabilities and have removed the requirement for a 

House pilot project, accordingly. Instead, the appropriate use of 

such technology is encouraged. This does not represent a requirement to scan all containers at the seaports using such technology. 

In primary screening, such technology can reduce nuisance alarms, 

which is of great importance at very high volume ports. In secondary screening, such technology can speed effective alarm resolution. It is the targeted use of this technology that the House and 

Senate support. The Conferees also note that nothing in this section shall be interpreted to limit the Secretary’s authority under 19 

U.S.C. 1318 concerning the entry of containers into United States 

ports under certain circumstances. 

Section 122. Inspection of car ferries entering from abroad 

Senate Section 123 requires the Department of Homeland Security, in coordination with Department of State, to develop a plan 

for the inspection of passengers and vehicles prior to loading onto 

ferries bound for a United States port. 

There is no comparable provision in the House bill. 

The Conference Report adopts the Senate provision. 

Section 123. Random searches of containers 

Senate Section 124 requires the Department of Homeland Security to develop and implement a plan, within one year after enactment, for random physical inspection of shipping containers. 

The random searches prescribed in this section do not preclude additional container searches. 

There is no comparable provision in the House bill. 

The Conference Report adopts the Senate provision. 

Section 124. Work stoppages and employee-employer disputes 

House Section 101 amends the definition of a transportation 

security incident, defined in 46 U.S.C. 70101(6), to clarify that a 

‘‘transportation security incident’’ does not include labor strikes or 

other related events. 

Senate Section 125 also amends the definition of a transportation security incident to note that the term economic disruption 

does not include a work stoppage or nonviolent employee-related 

action, not related to terrorism, and resulting from an employeeemployer dispute. 

The Conference Report adopts the Senate provision, with an 

agreement to strike the word ‘‘nonviolent’’ from the definition of the 

term. 


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Section 125. Threat assessment screening of port truck drivers 

Senate Section 126 requires the Department of Homeland Security to implement a threat assessment screening for all truck 

drivers accessing ports that is the same screening required for facility employees and longshoremen. The section also requires, subject to the availability of appropriations, this screening to begin 

within 90 days of enactment. 

House Section 106 contains a similar requirement that all individuals who have unescorted access to a secure area of a seaport 

facility be checked against terrorist watch lists to determine if the 

individual poses a threat. 

The Conference Report adopts the Senate provision, modified 

to strike the phrase ‘‘subject to the availability of appropriations.’’

Section 126. Border patrol unit for United States Virgin Islands 

House Section 123 requires the Secretary of Homeland Security to establish a Border Patrol unit for the United States Virgin 

Islands not later than 180 days after the date of the enactment of 

this Act. 

There is no comparable provision in the Senate bill. 

The Conference Report adopts the House provision, but the 

Conferees agree to change the word ‘‘shall’’ to ‘‘may.’’ Under this 

agreement, the Secretary will not be required to establish a Border 

Patrol unit for the United States Virgin Islands, but he is authorized to do so if it is deemed necessary. The Conference agreement 

also requires the Secretary of Homeland Security to submit a report to the appropriate congressional committees, within 180 days 

of enactment, that includes the schedule, if any, for establishing a 

Border Patrol unit in the United States Virgin Islands. The Conferees included this provision out of recognition of the increasing 

border security risks in the United States Virgin Islands, including 

human smuggling and drug trafficking. 

Section 127. Report on arrival and departure manifests for certain 

commercial vessels in the United States Virgin Islands 

House Section 126 requires the Secretary of Homeland Security to submit, to the appropriate congressional committees, a report on the impact of implementing the requirements of the Immigration and Nationality Act (8 U.S.C. 1221) with respect to commercial vessels that are fewer than 300 gross tons and only operate 

between the territorial waters of the United States Virgin Islands 

and the territorial waters of the British Virgin Islands. 

There is no comparable provision in the Senate bill. 

The Conference Report adopts the House provision. 

Section 128. Center of Excellence for Maritime Domain Awareness 

House Section 127 requires the Secretary of Homeland Security to establish a university-based Center of Excellence for Maritime Domain Awareness following appropriate merit-review processes and procedures that have been established by the Secretary. 

There is no comparable provision in the Senate bill. 

The Conference Report adopts the House provision. 


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TITLE II—SECURITY OF THE INTERNATIONAL 

SUPPLY CHAIN 

Subtitle A—General Provisions. 

Section 201. Strategic plan to enhance the security of the international supply chain 

House Section 201 amends the Homeland Security Act of 2002 

(P.L. 107–296) to require the Secretary of Homeland Security to 

create a strategy for improving security of containers within the 

international supply chain. The strategy must describe the roles 

and responsibilities of Federal, State, and local governments, identify security goals and minimum requirements, provide a process 

for enhanced intelligence sharing with the private sector, streamline initiatives, and recommend legislative and regulatory changes. 

Senate Section 201 requires the Department of Homeland Security to develop, implement and update a strategic plan to improve the security of the international cargo supply chain. This section requires the plan to identify and address gaps; provide improvements and goals; establish protocols for the resumptions of 

trade including identification of the initial incident commander; 

consider international standards for container security; and allow 

for communication with stakeholders. 

The Conference Report adopts the Senate provision, with modifications. In Senate Section 201 subparagraph (6), the word ‘‘determined’’ is replaced by ‘‘recommended,’’ as it relates to the Commissioner’s role in providing incentives for additional voluntary measures to enhance cargo security. The Conferees agree to extend the 

deadline from 180 days to 270 days after the date of the enactment 

for the Secretary to submit a report to the appropriate congressional committees that contains the strategic plan required under 

this section. The requirements listed for protocols for the resumption of trade required in subparagraph (10) are moved to Section 

202. The Conferees note that the consultation recommendations in 

Senate Sections 201(c) and 201(e) are not mutually exclusive. 

Section 202. Post-Incident resumption of trade 

Senate Section 202 requires the initial incident commander 

and lead department or agency carry out the protocols of the international supply chain strategic plan following a maritime transportation security incident. This section also requires the United 

States Coast Guard to ensure the safe and secure transit of vessels 

to United States ports, and recommends preference be given to vessels and cargo involved in the Container Security Initiative (CSI) 

or Customs–Trade Partnership Against Terrorism (C–TPAT) for 

the resumption of trade. Section 202 requires the Secretary to ensure that there is appropriate coordination among Federal officials 

and communication of revised procedures, not inconsistent with security interests, to the private sector to provide for the resumption 

of trade. 

House Section 102 is a comparable provision. 

The Conference Report adopts the Senate provision, as modified to clarify that resumption of trade benefits may be provided. 


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Section 203. Automated targeting system 

House Section 201 amends the Homeland Security Act of 2002, 

and inserts a new Section 1802, ‘‘Transmission of Additional Data 

Elements for Improved High Risk Targeting,’’ and Section 1803, 

‘‘Plan to Improve the Automated Targeting System.’’ House Sections 1802 requires the Secretary to issue regulations within one 

year of enactment to collect additional advanced data, including appropriate elements of entry data prior to loading containers overseas. House Section 1803 requires the Secretary of Homeland Security, within 180 days of enactment, to develop a plan to improve 

the Automated Targeting System (ATS) in order to enhance capabilities to detect high-risk containers. Section 1803 authorizes $5 

million for each of the fiscal years 2007 through 2012. 

Senate Section 203 requires the Department of Homeland Security to request and identify additional data (non-manifest and 

entry data elements) of container cargo moving through the international supply chain. Data would be analyzed to identify high-risk 

cargo for inspection. This section includes an authorization of appropriations to fund the Automated Targeting System for Fiscal 

Years 2008 through 2010 ($33 million, $35 million, $37 million respectively). 

The Conference Report adopts the House provision on the 

Automated Targeting System, as modified, including the Senate’s 

provision generally authorizing the Automated Targeting System. 

Section 204. Container security standards and procedures 

House Section 201 amends the Homeland Security Act of 2002, 

and inserts a new Section 1804, ‘‘Container Standards and 

Verification Procedures.’’ This section requires the Secretary of 

Homeland Security to establish minimum standards and 

verification procedures for securing containers in transit to the 

United States. This section also requires all containers bound for 

United States ports of entry meet these standards within two 

years. In addition, Section 1804 requires the Secretary to regularly 

review and enhance these security standards. 

Senate Section 204 requires the Secretary of Homeland Security to promulgate a rule to establish minimum standards and procedures for securing containers in transit to the United States. If 

the rulemaking deadline is not met, the Secretary is required to 

provide a letter to the Congress explaining the reason for the Department’s failure to meet the deadline. This section also encourages the Department of Homeland Security and other Federal 

agencies to promote international cargo security standards. 

The Conference Report adopts the Senate provision, as modified. An agreement has been reached to extend the deadline from 

60 days to 90 days after the date of enactment of this Act for the 

Secretary to initiate a rulemaking proceeding to establish minimum standards and procedures for securing containers in transit 

to the United States. 

In developing standards for container security devices, the 

Conferees direct the Secretary of Homeland Security to ensure that 

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zation for Standardization, the International Maritime Organization, and the World Customs Organization. 

Section 205. Container security initiative 

House Section 201 amends the Homeland Security Act of 2002, 

and inserts a new Section 1805, ‘‘Container Security Initiative 

(CSI).’’ This section authorizes the CSI Program and requires the 

Secretary of Homeland Security is required to conduct a thorough 

security assessment at each port prior to designating them as CSI 

ports, including an assessment of the level of risk for compromise 

by terrorists as well as a Coast Guard foreign port assessment. The 

section also requires the Secretary of Homeland Security to notify 

Congress prior to announcing a CSI port. In addition, the section 

requires the Secretary of Homeland Security to set standards for 

inspecting containers abroad and using inspection technology. Section 1805 also requires the Secretary of Homeland Security to 

evaluate options for providing foreign assistance to facilitate implementation of cargo security measures at foreign ports and may loan 

inspection technology for use at a CSI port. The section also requires the Secretary of Homeland Security to report annually on 

March 1 on the status of the CSI program and an assessment of 

the necessary personnel deployed overseas through the program. 

Finally, Section 1805 authorizes $196 million for each of the fiscal 

years 2007 through 2012. 

Senate Section 205 authorizes the Container Security Initiative 

(CSI) program to identify, examine, or search maritime containers 

before cargo bound for the United States is loaded in a foreign port. 

This section authorizes the Secretary of Homeland Security to designate foreign ports as part of the CSI program based upon criteria 

including risk, trade volume and value of cargo, United States 

Coast Guard assessments, and the commitment of the host nation 

to comply with data sharing requirements. This section also requires the Secretary of Homeland Security to establish standards 

for the use of nonintrusive imaging and radiation detection equipment at CSI ports. In addition, the Secretary of Homeland Security 

is required to develop a plan to ensure adequate staffing at CSI 

ports. Section 205 also requires the Secretary of Homeland Security 

to submit a report to Congress on the effectiveness of, and need for, 

improvements to CSI. This section authorizes appropriations for 

fiscal years 2008 through 2010 ($144 million, $146 million, and 

$153 million, respectively). 

The Conference Report adopts the Senate provision, with several modifications. The Senate recedes to the House request to 

strike ‘‘an importer in’’ in Senate Section 205 subsection (1). The 

Senate also recedes to the striking of the words ‘‘and value’’ in subsection (2) as it relates to cargo being imported into the United 

States. In addition, the Senate recedes to the House in requiring 

the Secretary of Homeland Security consult with appropriate Federal departments and agencies and private sector stakeholders to 

ensure that no international trade obligations are violated under 

this section. 

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spect to overseas deployment of radiation detection equipment. The 

Conferees encourage the Secretary of Homeland Security to coordinate the CSI program with the Department of Energy’s Megaports 

program. 

Subtitle B—Customs–Trade Partnership Against Terrorism 

Section 211. Establishment 

House Section 201 amends the Homeland Security Act of 2002 

and inserts a new Section 1811, which authorizes the Secretary of 

Homeland Security to establish a voluntary program (the Customs–

Trade Partnership Against Terrorism) to strengthen international 

supply chain and border security, facilitate the movement of secure 

cargo, and provide benefits to eligible participants. 

Senate Section 211 is a comparable provision. 

The Conference Report adopts the House provision, but does 

not amend the Homeland Security Act of 2002. 

Section 212. Eligible entities 

House Section 201 amends the Homeland Security Act of 2002 

and inserts a new Section 1812, which allows importers, customs 

brokers, forwarders, air- sea- and landcarriers, contract logistics 

providers, and other entities in the international supply chain and 

intermodal transportation system to apply for membership in this 

program. 

Senate Section 212 is a comparable provision. 

The Conference Report adopts the Senate provision. 

Section 213. Minimum requirements 

House Section 201 amends the Homeland Security Act of 2002 

and inserts a new Section 1813, which establishes minimum security and other requirements that applicants must meet to be eligible to participate in the Customs–Trade Partnership Against Terrorism (C–TPAT). 

Senate Section 213 is a comparable provision. 

The Conference Report adopts the Senate provision. 

The Conferees note that the requirement in Section 213(1) that 

a company demonstrate a history of moving cargo in the international supply chain should not prevent start-up companies or 

other newly created business entities from participating in C–

TPAT if they are able to demonstrate adequate compliance with 

relevant security requirements. 

Section 214. Tier 1 participants in C–TPAT 

House Section 201 amends the Homeland Security Act of 2002 

to insert a new Section 1814, that allows for limited benefits for 

Customs–Trade Partnership Against Terrorism (C–TPAT) participants. 

Senate Section 214 allows for limited benefits for Customs–

Trade Partnership Against Terrorism (C–TPAT) participants. 

These benefits may include a reduction of the Automated Targeting 

System risk score for those C–TPAT participants that meet the 

minimum guidelines established. This section also requires, to the 


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extent practicable, the Secretary to complete the Tier 1 certification 

process within 90 days of receipt of a candidate’s application. 

The Conference Report adopts the Senate provision. 

Senate Section 214 included a provision, which the Conferees 

accept, clarifying that the benefits to Tier 1 C–TPAT benefits may 

include a reduction in scores assigned pursuant to the Automated 

Targeting System (ATS) of not greater than 20 percent of the high 

risk threshold established by the Secretary. This provision ensures 

that a C–TPAT participant’s container or cargo will not be classified as low-risk under the ATS simply because the participant is 

certified for Tier 1 of C–TPAT. 

Section 215. Tier 2 participants in C–TPAT 

Senate Section 215 allows for additional benefits in the form 

of reduced cargo examinations and priority processing to those participants who meet a higher level of Customs–Trade Partnership 

Against Terrorism (C–TPAT) security requirements. Section 215 

also requires the Secretary of Homeland Security to validate the 

security measures and supply chain practices of C–TPAT participants, including on-site assessments, within one year of certification. 

House Section 1815 is a comparable provision. 

The Conference Report adopts the Senate provision. 

Section 216. Tier 3 participants in C–TPAT 

House Section 201 amends the Homeland Security Act of 2002 

to insert a new Section 1816, which establishes a third tier of the 

Customs–Trade Partnership Against Terrorism (C–TPAT) program, 

offering increased benefits to participants that demonstrate a sustained commitment to security based on certain criteria. Benefits 

may include, among others, expedited release of cargo, further reduced examinations, and reduced bonding requirements. 

Senate Section 216 is similar to the House provision. Section 

216 authorizes the submission of additional information, and notification of specific alerts. 

The Conference Report adopts the Senate provision, as modified to remove the notification of specific alerts and post-incident 

procedures provisions. 

Section 217. Consequences for lack of compliance 

House Section 201 amends the Homeland Security Act of 2002 

to insert a new Section 1817, which allows the Secretary of Homeland Security to deny benefits, in whole or in part, including suspension or elimination for at least five years, of any participant 

that fails to meet Customs–Trade Partnership Against Terrorism 

(C–TPAT) requirements, or knowingly provides false or misleading 

information. 

Senate Section 217 is similar to the House provision. Section 

217 establishes an appeals process for C-TPAT participants suspended or eliminated for lack of compliance. 

The Conference Report adopts the Senate provision, as modified to require the Commissioner of United States Customs and 

Border Protection to establish procedural protections to safeguard 

against improper revocation of benefits. These procedures shall not 


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be interpreted to impede the Secretary of Homeland Security’s ability to take action to protect the national security of the United 

States. 

Section 218. Third-party validations 

House Section 201 amends the Homeland Security Act of 2002 

to insert a new Section 1818, which requires the Secretary of 

Homeland Security to establish a pilot program to utilize thirdparty entities to conduct validations of Customs–Trade Partnership 

Against Terrorism (C–TPAT) participants. The pilot program, and 

any extension of the use of third party validators, shall apply for 

Safety Act certification under Section 864 of the Homeland Security 

Act of 2002 (P.L. 107–296), to enter into contractual agreements directly with the C–TPAT members, and shall meet all standards for 

validating C–TPAT participants. This section also requires the Secretary of Homeland Security to report to Congress 30 days after 

the conclusion of the year-long pilot program. 

There is no comparable Senate provision in the bill. 

Section 218 of the Conference agreement is similar to House 

Section 1818 and requires the Secretary of Homeland Security, acting through the Commissioner of United States Customs and Border Protection of the Department of Homeland Security, to establish a plan to implement a one-year voluntary pilot program to test 

and assess the feasibility, costs, and benefits of utilizing thirdparty entities to conduct validations of C–TPAT participants. The 

Conference Report also requires the Secretary of Homeland Security to provide a report to the appropriate congressional committees 

regarding the plan within 120 days of enactment. The agreement 

provides for the certification of third-party entities and requires the 

Secretary of Homeland Security to monitor and inspect the operations of the entities conducting validations to ensure that they are 

meeting the minimum procedures and requirements for the validation of C–TPAT participants. If the Secretary of Homeland Security 

determines that a validator is not meeting the minimum procedures and requirements, the Secretary of Homeland Security is required to revoke the validator’s certificate and review any validations conducted by the entity. The agreement also requires the Secretary of Homeland Security to submit a report to the appropriate 

congressional committees detailing the results of the pilot program. 

Section 219. Revalidation 

House Section 201 amends the Homeland Security Act of 2002 

to insert a new Section 1819. This section requires revalidation of 

Customs–Trade Partnership Against Terrorism (C–TPAT) participants not less frequently than once during a three-year period. 

Senate Section 218 establishes a process for revalidating C–

TPAT participants in tiers 2 and 3 and requires an annual plan for 

revalidation, detailing performance measures and necessary personnel requirements. The Senate language requires revalidation of 

C–TPAT participants not less frequently than once during a fiveyear period. 

The Conference Report adopts the Senate provision, as modified to require revalidation not less frequently than once during a 

four-year period. 


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Section 220. Noncontainerized cargo 

House Section 201 amends the Homeland Security Act of 2002 

to insert a new Section 1820, which requires the Secretary of 

Homeland Security to consider including importers of non-containerized cargo as participants in the Customs–Trade Partnership 

Against Terrorism (C–TPAT), provided program requirements are 

met. 

Senate Section 219 is a comparable provision. 

The Conference Report adopts the Senate provision 

Section 221. C–TPAT program management 

Senate Section 220 requires the Secretary of Homeland Security to establish sufficient internal quality controls and record management of the Customs–Trade Partnership Against Terrorism (C–

TPAT) program including development of a strategic plan to identify goals; annual plans to match resources with workload; a standardized work program to monitor progress; a record management 

system; and a data protection program. 

There is no comparable language in the House bill. 

The Conference Report adopts the Senate provision, with an 

agreement to merge this section with Senate-passed 221, ‘‘Resource 

Management Staffing,’’ and Senate-passed Section 224, ‘‘Report to 

Congress.’’

The Conferees do not intend for section 221(c), which deals 

with confidential information safeguards, to create a new exemption to information otherwise required to be disclosed under the 

Freedom of Information Act (5 U.S.C. 552). 

Section 222. Additional personnel 

Senate Section 222 requires the Secretary of Homeland Security to increase, by at least 50 positions annually for fiscal years 

2007 through 2009, the number of personnel to validate and revalidate Customs–Trade Partnership Against Terrorism (C–TPAT) participants. 

There is no comparable provision in the House bill. 

The Conference Report adopts the Senate provision, as modified to authorize the hiring of 50 validation personnel for each of 

fiscal years 2008 and 2009. 

Section 223. Authorization of appropriations 

Senate Section 223 authorizes appropriations to United States 

Customs and Border Protection in the Department of Homeland 

Security to carry out the Customs–Trade Partnership Against Terrorism (C–TPAT) provisions of Sections 211 through 221. The section authorizes $65 million for fiscal year 2008; $72 million for fiscal year 2009; and $75.6 million for fiscal year 2010. In addition 

to any monies appropriated to Customs and Border Protection, this 

section authorizes funds to be appropriated funds for the purpose 

of meeting the staffing requirement provided in Section 222. This 

section authorizes $8.5 million for fiscal year 2007; $17.6 million 

for fiscal year 2008; $27.3 million for fiscal year 2009; $28.3 million 

for fiscal year 2010; $29.2 million for fiscal year 2011. 


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House Section 1821 is a comparable provision. House Section 

1821 authorizes $75 million for each Fiscal Year 2007 through 

2012 for this subtitle. 

The Conference Report adopts the Senate provision, as modified to reflect the changes in Conference Report Section 222. As a 

result, this section authorizes $8.5 million for Fiscal Year 2008 and 

$17.6 million for Fiscal Year 2009 for the staffing requirement in 

Section 222. 

Subtitle C—Miscellaneous Provisions 

Section 231. Pilot integrated scanning system 

House Section 208, ‘‘Integrated Container Inspection System 

Pilot Project,’’ is similar in content and purpose to Senate Section 

231, ‘‘Pilot Integrated Scanning System.’’

Senate Section 231 authorizes the development of a pilot program in three foreign seaports, each with unique features and 

varying levels of trade volume to test integrated scanning systems 

using nonintrusive inspection and radiation detection equipment. 

This section requires full-scale pilot program implementation within one year of enactment. An evaluation report is required to be 

submitted to Congress 90 days after full implementation of the 

pilot as full implementation is required as soon as practicable and 

possible. 

The Conference Report adopts the Senate provision, with a 

modification to subsection (b) ‘‘Coordination’’ to reflect similar intent in the provision for the Container Security Initiative (CSI). 

The Conference Report also modifies the reporting requirement 

from 90 to 180 days. The Conference Report also removes the implementation requirement in Senate Section 231. The Conferees 

note that nothing in this Subtitle should be read as to promote or 

support any particular company’s technology. 

Section 232. Screening and scanning of cargo containers 

House Section 202 requires an evaluation of detection systems 

available to scan containers at foreign seaports. If the Secretary determines the technology meets specific performance criteria, including the ability to automatically identify high-risk cargo such as a 

shielded nuclear device, the Secretary must seek the cooperation of 

foreign governments to scan all cargo possible. An annual report on 

the status of implementation and foreign cooperation is required. 

Senate Section 232 requires the Secretary of Homeland Security to ensure that 100 percent of cargo containers entering the 

United States through a seaport undergo screening to identify 

high-risk containers. This section also requires the Secretary of 

Homeland Security to ensure that 100 percent of the aforementioned high-risk containers be scanned for radiation before such 

containers arrive in the United States seaport facility. In addition, 

this directs the Secretary of Homeland Security to ensure all containers entering the United States are scanned when effective 

screening equipment becomes available and other criteria are met. 

The section requires the equipment to include both nonintrusive 

imaging and radiation detection features, as well as a means to 


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positively identify each container so that recorded data can be 

tagged appropriately. 

The Conference Report adopts the Senate provision, as modified. This section describes the minimum performance requirements that must be met by a scanning system before wide scale deployment. Of particular significance is the requirement for an automated alarm when dangerous material is found in a container, including a shielded nuclear device. The Conference Report also requires the Secretary of Homeland Security to provide periodic reports to Congress on the status of full-scale deployment. The Conferees note that full-scale implementation should only occur after 

the successful completion of the three port pilot projects. 

Section 233. International cooperation and coordination 

Senate Section 232 allows the Secretary of Homeland Security 

to provide assistance, equipment, and training to facilitate the implementation of supply chain security measures at ports designated 

by the Container Security Initiative (CSI). This section also requires the Secretary of Homeland Security to identify assistance 

programs to encourage implementation of port security 

antiterrorism measures in foreign nations and United States territories, including the United States Virgin Islands, with particular 

emphasis on ports in the Caribbean Basin. In addition, this section 

requires Government Accountability Office to submit a report on 

the security of Caribbean ports within 180 days. 

There is no comparable provision in the House bill. 

The Conference Report adopts the Senate provision. 

Section 234. Foreign port assessments 

House Section 204 requires the Secretary of the department in 

which the Coast Guard is operating, acting through the Commandant of the Coast Guard, to reassess security measures at foreign ports every three years. 

Senate Section 234 requires the Commandant of the Coast 

Guard to dedicate resources to complete inspections of foreign ports 

through which trade moves destined for the United States and to 

reinspect such ports every two years. 

The Conference Report adopts the House provision. 

Section 235. Pilot program to improve the security of empty containers 

House Section 205 requires the Department of Homeland Security to conduct a one-year pilot program to assess the risk posed 

by, and improve the security of, empty containers at United States 

seaports. This section requires the Secretary of Homeland Security 

to prepare and submit a report to the appropriate congressional 

committees, not later than 90 days after the completion of the pilot 

program, the results of the program and a determination of whether to expand this program. 

The Senate bill does not contain a comparable provision. 

The Conference Report adopts the House provision, with an 

agreement to replace the word ‘‘evaluate’’ in subsection (a) with the 

words ‘‘assess the risk posed by.’’


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Section 236. Information sharing relating to supply chain security 

cooperation 

House Section 201 amends the Homeland Security Act of 2002 

to insert a new Section 1806, which establishes continuing liaison 

and provides for supply chain security cooperation between the Department of Homeland Security and the private sector. The section 

also provides for information sharing between the private sector 

and the Department of Homeland Security as it relates to developments and security risks in the supply chain environment. 

The Senate does not contain a comparable provision. 

The Conference adopts the House provision. 

The Conferees do not intend this section to be interpreted to 

impede or supersede existing programs such as the International 

Trade Data System (ITDS) or the Automated Commercial Environment (ACE). 

TITLE III—ADMINISTRATION 

Section 301. Office of Cargo Security Policy 

House Section 603 establishes a Director of Cargo Security Policy within the Directorate for Policy, Planning, and International 

Affairs of the Department of Homeland Security (established in 

House Section 601). The section requires the Director of the Office 

of Cargo Security Policy to advise the Assistant Secretary for Policy 

regarding all aspects of Department programs related to cargo security, coordinate Department-wide policies regarding cargo security, and coordinate the cargo security policies of the Department 

with other Federal departments and agencies. 

Senate Section 301 establishes the Office of Cargo Security 

Policy in the Department of Homeland Security, headed by a Director, to coordinate all Department of Homeland Security policies relating to cargo security and consult with other Federal agencies in 

the establishment of standards and regulations and to promote best 

practices. This section also requires the Secretary of State to designate a liaison office with the Department of State to assist, as appropriate, in negotiating cargo security-related international agreements. 

The Conference Report adopts the Senate provision. 

The Conferees note that the creation of this new office does not 

affect the Coast Guard’s direct control over its missions, assets, and 

personnel and the Coast Guard is not required to seek the approval, permission, or clearance of this office in performing any 

Coast Guard mission. 

Section 302. Reauthorization of Homeland Security Science and 

Technology Advisory Committee 

Senate Section 302 reauthorizes the Homeland Security 

Science and Technology Advisory Committee and requires the Assistant Secretary for Science and Technology of the Department of 

Homeland Security to utilize the Committee to provide outside expertise in advancing cargo security technology. 

There is no comparable section in the House bill. 

The Conference Report adopts the Senate provision. 


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Section 303. Research, development, test, and evaluation efforts in 

furtherance of maritime and cargo security 

Senate Section 303 assures coordination within the Department of Homeland Security and with other public and private sector entities for research and development of maritime and cargo security innovations. 

House Section 201 amends the Homeland Security Act of 2002 

to insert a new Section 1831, which is comparable to Senate Section 303. 

The Conference Report adopts the Senate provision. 

TITLE IV—AGENCY RESOURCES AND OVERSIGHT 

Section 401. Trade and Customs Revenue Functions of the Department. 

House Sections 301 and 302, among other things, establish the 

Director of Trade policy in the Department of Homeland Security. 

The Senate bill contains no comparable provision. 

The Conference Report adopts the House provision, as modified 

to require the Secretary of Homeland Security to designate a senior 

official in the Office of the Secretary to ensure that the trade and 

customs revenue functions of the Department of Homeland Security are coordinated within the Department of Homeland Security 

and other Federal departments and agencies and to monitor and 

report to the Congress on the Department’s mandate ensuring that 

trade and customs revenue functions are not diminished. This section also establishes a Director of Trade Policy to advise on all aspects of Department of Homeland Security policies relating to the 

trade and customs revenue functions. Section 401 requires the 

Comptroller General of the United States to conduct a study evaluating the Department of Homeland Security’s compliance with section 412(b) of the Homeland Security Act of 2002 (P.L. 107–296) 

and report the findings to the Congress. In addition, this section 

requires the Secretary to ensure that the requirements of section 

412(b) of the Homeland Security Act of 2002 (P.L. 107–296) are 

fully satisfied and submit a report to the Committee on Ways and 

Means of the House of Representatives and the Committee on Finance of the Senate by September 30, 2007. Section 401 further requires the Secretary of Homeland Security to consult with representatives of the business community on Department of Homeland Security policies that have a significant impact on trade. Finally, section 401 requires the Secretary of Homeland Security to 

notify the appropriate congressional committees not later than 30 

days prior to the finalization of any Department of Homeland Security policies, initiatives, or actions that will have a major impact 

on trade and customs revenue functions, with certain exceptions if 

the Secretary of Homeland Security determines that it is important 

to the national security of the United States. The notification must 

include a description of the proposed policy initiatives or actions 

and any comments or recommendations provided by the Commercial Operations Advisory Committee (COAC) and other relevant 

groups. 


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The Conferees intend the senior official in section 401(a)(1) to 

be the current Assistant Secretary for Policy under the Department 

of Homeland Security’s current organizational structure, or the 

Under Secretary for Policy if one is created. The Conferees oppose 

the designation of the Commissioner of United States Customs and 

Border Protection, or another officer outside of the Office of the 

Secretary of Homeland Security, who does not have authority for 

Department-wide functions or oversight. It is the intent of Conference that the business community consultations and relevant 

groups referred to in Section 401(c) shall include a wide cross section of the interested parties including representatives of domestic 

industry sectors, particularly those affected by enforcement actions; 

customs brokers and other trade facilitators; and small businesses. 

In addition, the COAC should strive to represent the wide range 

of commercial interests impacted by the operations of the Department of Homeland Security. 

Section 402. Office of International Trade; Oversight 

Senate Section 401 establishes an International Trade Policy 

Committee and an International Trade Finance Committee. This 

section requires both the International Trade Policy Committee 

and the International Trade Finance Committee to submit a report 

to the Committee on Finance of the Senate and the Committee on 

Ways and Means of the House of Representatives within 30 days 

of the end of each fiscal year detailing their activities and identifying their future priorities. 

The House bill does not include a comparable provision. 

The Conference Report adopts the Senate provision as modified. It establishes the Office of International Trade, headed by an 

Assistant Commissioner of United States Customs and Border Protection of the Department of Homeland Security. This section requires the transfer of the assets, functions, and personnel of the Office of Strategic Trade and the Office of Regulations and Rulings 

to the Office of International Trade within 90 days of the date of 

enactment. In addition, this section authorizes the Commissioner of 

United States Customs and Border Protection to transfer any other 

assets, functions, or personnel to the Office of International Trade, 

provided that the Commissioner notifies the Congress of a planned 

transfer 45 days prior to such transfer. However, certain exceptions 

apply with respect to resources from United States ports of entry 

associated with the enforcement of textile and apparel laws. This 

section also requires the Commissioner of United States Customs 

and Border Protection to establish an International Trade Policy 

Committee to advise the Commissioner with respect to the commercial customs and trade facilitation functions of United States Customs and Border Protection. 

Section 403. Resources 

Senate Section 402 requires United States Customs and Border Protection to complete a resource allocation model by June 30, 

2007, and every two years thereafter, to determine optimal staffing 

for commercial and revenue functions. The section requires submission of these models to the Congress. Section 402 authorizes appropriations to increase the number of United States Customs and 


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Border Protection personnel to perform commercial operations and 

customs revenue functions, based on the resource allocation models 

required by this section. The section also authorizes the hiring of 

an additional 1000 Customs and Border Protection Officers 

(CBPOs). 

The House bill does not contain a comparable provision, although House Section 121 provides for 200 additional CBPOs for 

each of the Fiscal Years 2007 through 2012. 

The Conference Report adopts Senate Section 402, as modified. 

The Conferees agree to include language requiring the initial resource allocation model to provide for the hiring of a minimum of 

200 CBPOs for each of the Fiscal Years 2008 through 2012. The 

Conference agreement requires the Commissioner of United States 

Customs and Border Protection, in assigning the additional personnel, to consider the volume of trade, the incidence of non-voluntarily disclosed customs and trade law violations, and security priorities at the United States ports of entry. The Commissioner of 

United States Customs and Border Protection shall assign at least 

10 additional CBPOs at each service port and the ports of entry 

serviced by such service port no later than October 2010. However, 

the Commissioner shall not assign an additional CBPO to a port 

of entry that does not need such an additional CBPO. The agreement also requires the Commissioner of Customs and Border Protection to consult with the port directors of each service port prior 

to assigning CBPOs to determine where to assign such additional 

CBPOs. 

The Conferees expect that the Commissioner of United States 

Customs and Border Protection will use the resources of Section 

403 to accelerate the development and promulgation of regulations 

to implement trade agreements because the pace has been too slow. 

Section 404. Negotiations 

The Conference agreement is identical to Senate Section 403, 

which requires the Department of Homeland Security to work with 

appropriate Federal officials and international organizations to 

harmonize customs procedures, standards, requirements, and commitments to facilitate the efficient flow of international trade. 

The House bill does not contain a comparable provision. 

The Conference substitute adopts the Senate provision. 

Section 405. International Trade Data System 

House Section 203 requires the President to establish and implement the International Trade Data System (ITDS), a single, uniform data system for the electronic collection, dissemination, and 

sharing of import and export information, to increase the efficiency 

of data submission and the security of such data related to border 

security, trade, and public health and safety of international cargoes. The section requires the President to consult with private sector stakeholders in developing uniform data submission requirements, procedures, and schedules. Section 203 also requires the 

President to provide a report to the appropriate congressional committees on the schedule for full implementation of ITDS. 

Senate Section 404 requires the Secretary of the Treasury to: 

oversee the establishment of an electronic trade data interchange 


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system; eliminate redundant information requirements; efficiently 

regulate the flow of commerce; and enforce regulations relating to 

international trade. This section also requires all Federal agencies 

that require documentation for clearing or licensing the importation and exportation of cargo to participate in the International 

Trade Data System (ITDS). This section allows the Office of Management and Budget (OMB) to waive the participation requirement 

if it is in the interest of National security. In addition, this section 

establishes an Interagency Steering Committee to define the standard set of data elements to be collected, stored and shared in the 

ITDS and requires the Committee to submit a report to the Congress before the end of each fiscal year. 

The Conference Report adopts the Senate provision as modified. 

Section 406. In-Bond cargo 

Senate Section 405 requires the Commissioner of United States 

Customs and Border Protection to submit a report regarding inbond cargo to the Committees on Commerce, Science, and Transportation; Homeland Security and Government Affairs; and Finance of the Senate and the Committees on Homeland Security; 

Transportation and Infrastructure; and Ways and Means of the 

House of Representatives not later than June 30, 2007. The report 

must include: a plan for closing in-bond entries at the port of arrival; an assessment of whether ports of arrival should require any 

additional information regarding shipments of in-bond cargo; and 

an evaluation of criteria for targeting and examining in-bond cargo. 

The House bill does not contain a comparable provision. 

The Conference Report adopts the Senate provision. 

Section 407. Sense of the Senate 

Senate Section 406 expresses the sense of the Senate that 

nothing in Sections 2, 106, 111 through 113, and 201 through 232 

of the bill shall be construed to affect the jurisdiction of any standing committee of the Senate. 

The House bill does not include a comparable provision. 

The Conference Report adopts the Senate provision. 

TITLE V—DOMESTIC NUCLEAR DETECTION 

OFFICE 

Section 501. Establishment of Domestic Nuclear Detection Office 

House Section 401 amends the Homeland Security Act of 2002 

(P.L. 107–296) to add new Sections 2001 through 2015, which establish the Domestic Nuclear Detection Office (DNDO) in the Department of Homeland Security. 

Senate Section 801 also establishes DNDO, and is similar to 

Section 401 of the House bill. 

The Conference Report adopts the Senate provision, as modified, amending the Homeland Security Act as noted below. 


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Section 1801. Domestic Nuclear Detection Office 

Section 1801 of the Conference Report establishes the Domestic 

Nuclear Detection Office (DNDO) in the Department of Homeland 

Security, to be headed by a Director appointed by the President. 

This section allows the Secretary of Homeland Security to request 

that the heads of various Federal agencies provide for the reimbursable detail of personnel with relevant expertise to the DNDO. 

Section 1802. Mission of office 

Section 1802 of the Conference Report defines the mission of 

the Domestic Nuclear Detection Office (DNDO) and the responsibilities of the Director of DNDO. In fulfilling its mission to coordinate 

Federal efforts to detect and prevent acts of nuclear or radiological 

terrorism against the United States, DNDO will be responsible for: 

developing the global nuclear detection architecture (a blueprint for 

an international and domestic network of nuclear and radiological 

detectors), implementing the domestic portion of this architecture, 

and continually maintaining situational awareness throughout the 

global architecture; enabling effective information and intelligence 

sharing with and reporting to appropriate officials including the intelligence community, law enforcement agencies, the emergency response community, and other appropriate authorities; and, developing, coordinating and executing a research and development program focused on achieving dramatically improved nuclear detection 

capabilities. 

The Conference Report adopts the provision in Senate Section 

801. The Senate recedes to House language which clarifies DNDO’s 

responsibilities to include technical reachback. This ensures technical experts are available for interpreting detector data. This provision is critical to the success of the implementation of the global 

nuclear detection architecture. The Senate also recedes to House 

language requiring DNDO to conduct rigorous testing and evaluation of detectors and detection systems to ensure that desired performance capabilities are known and can be attained under realistic operating conditions prior to large scale acquisition and deployment. 

Section 1803. Hiring authority 

Section 1803 of the Conference Report gives the Secretary of 

Homeland Security flexible hiring authority designed to attract 

qualified technical personnel needed in the Domestic Nuclear Detection Office to successfully fulfill its mission. 

Section 1804. Testing authority 

Section 1804 provides the Director of the Domestic Nuclear Detection Office (DNDO) with the authority to use Federal facilities 

to test equipment and any other items related to the mission of 

DNDO. This section ensures that test results remain confidential, 

unless consent is provided. The House and Senate confidentiality 

provisions are identical. Section 1804 also establishes a fee structure that allows for private sector companies to use Federal facilities to test mission-related equipment. While the provision for testing services in the House bill is similar to the Senate version, the 

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vide greater clarity on fees incurred by the Government for providing services to the private sector. 

Section 1805. Relationship to other department entities and Federal 

agencies 

House Section 2001(d) and 2003(c) are similar in content and 

purpose to Senate Section 1805, but the Senate provision has a 

more extensive savings clause. 

Senate Section 1805 clarifies that the authorities and responsibilities of the Director created in this Act will not affect those of 

other Department entities, nor those of other Federal Departments 

or agencies. 

The Conference Report adopts the Senate provision. 

Section 1806. Contracting and grant making authorities 

The House Section 401 contains conforming language enabling 

the Director of DNDO to carry out research, development, testing, 

and evaluation of nuclear and radiological detection technologies 

through extramural and intramural programs using grants, contracts, cooperative agreements and other transactions. Additionally, 

the House bill allows the Director to establish or contract with a 

Federally Funded Research and Development Center to assist in 

carrying out mission-related responsibilities. These authorities are 

vested in the Director by amending Title III of the Homeland Security Act of 2002 (P.L. 107–296), and thus these authorities are 

given by the Secretary to the Director, in conjunction with the 

Under Secretary for Science and Technology. 

Senate Section 802 is a comparable provision. 

The Conference Report creates authorities for the Director, not 

through amending Title III of the Homeland Security Act of 2002, 

but by establishing these authorities, independent of the Under 

Secretary for Science and Technology, directly within Title XVIII— Domestic Nuclear Detection Office of the Homeland Security Act of 

2002, as amended by this Act. Section 1806 of the Conference Report also includes language from a Senate amendment directing 

DNDO to investigate radiation detection equipment in configurations suitable for deployment at seaports. 

Section 502. Technology research and development investment strategy for nuclear and radiological detection 

Senate Section 802 requires the development of a long-term, 

interagency road map to guide research and development on nuclear and radiological detection systems. A report on the impact of 

this title on the Department of Homeland Security’s research and 

development efforts is also required. The Director of DNDO and the 

Under Secretary for Science and Technology are required to report 

annually on their efforts to provide a cohesive, integrated research 

and development strategy. 

House Section 401 amended the Homeland Security Act to insert a new Section 2011. The report provision included in this section, in contrast to the requirement above, is an internal DNDO activity requiring the Director to inform Congress of its global detection strategy, status, and schedule. 

The Conference Report adopts the Senate provision. 


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TITLE VI—COMMERCIAL MOBILE SERVICE 

ALERTS 

Section 601. Short title 

Senate Section 601 states that this title may be cited as the 

‘‘Warning Alert and Response Network Act.’’

The House bill contains no comparable provision. 

The Conference Report adopts the Senate provision. 

Section 602. Federal Communications Commission duties 

The Senate bill contains no comparable section. 

The House bill contains no comparable section. 

The Conference Report adopts the Senate provision, as modified. This section sets forth certain duties of the Federal Communications Commission (FCC) in connection with this title necessary 

to create a process through which commercial mobile service providers (as such term is defined by Section 332(d)(1) of the Communications Act of 1934) can voluntarily elect to transmit emergency 

alerts. The FCC must complete a proceeding adopting relevant 

technical standards, protocols, procedures and other technical requirements based on the recommendations of the Commercial Mobile Service Alert Advisory Committee established in this title to 

enable the transmission of emergency alerts by commercial mobile 

service providers who elect to transmit such alerts. This section 

also provides the FCC with authority necessary to implement this 

title and provides liability protection to commercial mobile service 

providers, including the vendors for such providers, electing to 

transmit emergency alerts. 

Section 603. Commercial Mobile Service Alert Advisory Committee 

Senate Section 606 establishes a Working Group to provide 

guidance on the development of the National Alert System. 

The House bill contains no comparable section. 

The Conference Report adopts the Senate provision, as modified. This section directs the Chairman of the FCC to establish a 

Commercial Mobile Service Alert Advisory Committee (Advisory 

Committee) that is required to develop recommendations critical to 

enable the transmission of emergency alerts by commercial mobile 

service providers that elect to transmit such alerts. Such recommendations must be submitted by the Advisory Committee to 

the FCC within one year of enactment, and include protocols, technical capabilities, and technical procedures through which participating providers may receive, verify and transmit alerts to subscribers. This section also requires the Advisory Committee to 

make recommendations concerning the transmission of alerts in 

languages other than English, to the extent practicable and feasible. The membership of the Advisory Committee includes representatives of State, local and tribal governments, industry experts and such other stakeholders as the FCC Chairman deems appropriate. This section provides rules for the Advisory Committee, 

exempts it from the requirements of the Federal Advisory Committee Act, and requires its meetings to be public and announced 

in advance. 


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Section 604. Research and development 

Senate Section 607 requires the Undersecretary of Homeland 

Security for Science and Technology and the Director of the National Alert Office to establish a research and development program to help facilitate future communication devices to effectively 

participate in the system. 

The House bill contains no comparable section. 

The Conference Report adopts the Senate provision, as modified. This provision directs the Department of Homeland Security’s 

Under Secretary for Science and Technology to establish a research, development, testing, and evaluation program to facilitate 

the transmission of emergency alerts by commercial mobile service 

providers, including the transmission of geographically targeted 

alerts. 

Section 605. Grant program for remote community alert systems 

Senate Section 608 instructs the Administrator of National 

Oceanic and Atmospheric Administration (NOAA) to establish a 

grant program to provide for the installation of technologies in remote communities to ensure they are effectively alerted. This grant 

program sunsets after five years. 

The House bill contains no comparable section. 

The Conference Report adopts the Senate provision, as modified. This provision directs the Administrator of the National Oceanic and Atmospheric Administration (NOAA), in consultation with 

the Secretary of Homeland Security, to establish a grant program 

for outdoor alerting technologies for remote communities that are 

effectively unserved by commercial mobile service. The grant program sunsets after five years and is capped at $10 million. 

Section 606. Funding 

Senate Section 613 authorizes $106 million through the Digital 

Transition and Public Safety Fund in accordance with section 3010 

of the Digital Television Transition and Public Safety Act of 2005. 

The House bill does not contain a comparable provision. 

The Conference Report adopts the Senate provision, as modified. This provision establishes the funding mechanisms for this 

title and provides borrowing authority to accelerate implementation 

of this title. It emphasizes that priority should be given to the provisioning of backbone capability by public broadcast stations to ensure sufficient funding for such capability. 

Section 607. Essential services disaster assistance 

The House bill does not contain a comparable provision. 

The Senate bill does not contain a comparable provision. 

The Conference Report adopts this provision, which prohibits 

Federal agencies, to the greatest extent practicable, from denying 

or impeding essential service provider access to a disaster site for 

the purpose of restoring essential services or impeding the repair 

or restoration of essential services by such providers, unless exceptional circumstances apply. This provision does not waive any Federal laws, regulations or policies. 


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Section 608. Community disaster loans 

The House bill does not contain a comparable provision. 

The Senate bill does not contain a comparable provision. 

The Conference Report adopts this provision, which increases 

the community disaster loan percentage to 50 percent of local government’s annual operating income if local government loses 75 

percent of its tax and other revenue due to a major disaster, but 

retains the $5 million cap. This would primarily help small local 

governments with annual budgets of under $10 million. 

Section 609. Public facilities 

The House bill does not contain a comparable provision. 

The Senate bill does not contain a comparable provision. 

The Conference Report adopts this provision, which authorizes 

a 90 percent reimbursement for relocating a public building that 

was destroyed by disaster in all cases, regardless of whether there 

is soil instability. 

The Conferees note that this approach may be more efficient 

than having the Federal Emergency Management Agency pay the 

extra cost of raising the elevation of a rebuilt public building when 

flood zones change, as is the case under current law. Current law 

allows, as an alternative to rebuilding in place a public building destroyed by a major disaster, the option of taking a grant to replace 

that capability in another location. The Federal contribution 75 

percent of the Federal cost share, unless the reason for relocating 

is soil instability, in which case the Federal contribution is 90 percent of the Federal cost share. 

Section 610. Expedited payments 

The House bill does not contain a comparable provision. 

The Senate bill does not contain a comparable provision. 

The Conference Report adopts this provision, which requires 

the Federal Emergency Management Agency to make a down-payment of at least 50 percent of the Federal estimated cost of the reimbursement to a local government for debris removal within 60 

days of developing the estimate, but not later than 90 days after 

the filing of the claim. 

Section 611. Use of local contracting 

The House bill does not contain a comparable provision. 

The Senate bill does not contain a comparable provision. 

The Conference Report adopts this provision, which instructs 

Federal agency contracting officers, when practicable and feasible, 

to break disaster response and recovery work requirements into 

smaller packages to facilitate participation by local contractors. 

The Conferees note that in response to Hurricane Katrina, 

Federal agencies tended to hire large contractors to perform broad 

responsibilities over the entire disaster area, which made it difficult for smaller, local firms to compete. 

Section 612. Federal emergency management agency programs 

The House bill does not contain a comparable provision. 

The Senate bill does not contain a comparable provision. 


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The Conference Report adopts this provision, which requires 

the Federal Emergency Management Agency to be responsible for 

the radiological emergency preparedness program and the chemical 

stockpile emergency preparedness program. 

Section 613. Homeland Security definition 

The House bill does not contain a comparable provision. 

The Senate bill does not contain a comparable provision. 

The Conference Report adopts this provision, which amends 

the Homeland Security Act of 2002 (P.L. 107–296) to insert ‘‘governmental and non-governmental’’ after ‘‘local.’’

TITLE VII—OTHER MATTERS 

Section 701. Security plan for essential air service and small community airports 

Senate Section 1106 requires the Assistant Secretary of Homeland Security for Transportation Security, not later than 60 days 

after the date of enactment, to submit a security plan to Congress 

for Essential Air Service airports in the United States. The section 

requires the plan to include recommendations for improved security 

measures and passenger and cargo screening procedures, and a 

timeline and cost analysis for the implementation of the recommended security measures and screening procedures. 

The House bill does not contain a comparable provision. 

The Conference Report adopts the Senate provision, as modified to require a security plan for Essential Air Service Airports in 

the United States and airports whose community or consortia of 

communities receive assistance under the Small Community Air 

Service Development Program and maintain, resume, or obtain 

scheduled passenger air carrier service with assistance from that 

program. 

Section 702. Disclosures regarding homeland security grants 

Senate Section 1107 requires each State or local government 

that receives a grant from the Department of Homeland Security 

to provide a report to the Secretary of Homeland Security listing 

all expenditures using such funds. 

The House bill does not contain a comparable provision. 

The Conference Report adopts the Senate provision. 

Section 703. Trucking security 

Senate Section 1109 requires the Secretary of Transportation, 

in cooperation with the Secretary of Homeland Security, not later 

than 12 months after the date of enactment, to issue regulations 

to implement the recommendations of the Department of Transportation Inspector General’s memorandum issued on June 4, 2004. In 

addition, this section requires the Secretary of Transportation, in 

conjunction with the Secretary of Homeland Security, to issue a 

regulation to implement the recommendations contained in the Report on Federal Motor Carrier Safety Administration Oversight of 

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actment, to draft guidelines for Federal, State, and local law enforcement officials to improve compliance with Federal immigration 

and customs laws. In addition, this section requires the Administrator of the Federal Motor Carrier Safety Administration, within 

12 months of enactment, to modify the final rule regarding the enforcement of operating authority to establish a system or process 

by which a carrier’s operating authority can be verified during a 

roadside inspection. 

The House bill does not contain a comparable provision. 

The Conference Report adopts the Senate provision, as modified to require the Secretary of Transportation to work in cooperation with the Secretary of Homeland Security in issuing regulations 

to implement the recommendations in the Report on Federal Motor 

Carrier Safety Administration Oversight of the Commercial Driver’s License Program. In addition, the Conference agreement 

changes the time frame for completion of the various tasks in this 

section from 12 months to 18 months. 

Section 704. Air and marine operations of the northern border air 

wing 

Senate Section 1112 authorizes $40 million, in addition to any 

other amounts authorized for United States Customs and Border 

Protection, for each of fiscal years 2007 and 2008 for the operating 

expenses of the Northern Border Air Wing in Great Falls, Montana. 

The House bill does not contain a comparable provision. 

The Conference Report adopts the Senate provision, as modified. This section authorizes such sums as are appropriate in fiscal 

year 2008, in addition to any other amounts authorized for United 

States Customs and Border Protection, for the Northern Border Air 

Wing Branch in Great Falls, Montana. 

Section 705. Phase-out of vessels supporting oil and gas development 

Senate Section 1114 allows foreign-flag vessels to be employed 

for the movement or transportation of anchors in the Beaufort Sea. 

The House bill does not contain a comparable provision. 

The Conference Report adopts the Senate provision. 

Section 706. Coast Guard property in Portland, Maine 

Senate Section 1115 changes the conveyance date for United 

States Coast Guard Property in Portland, Maine. 

The House bill does not contain a comparable provision. 

The Conference Report adopts the Senate provision. 

Section 707. Methamphetamine and methamphetamine precursor 

chemicals 

Senate Section 1116 requires the Commissioner of the United 

States Customs and Border Protection to conduct a study and submit a report on matters relating to Methamphetamine and Methamphetamine Precursor Chemicals. 

The House bill does not contain a comparable provision. 

The Conference Report adopts the Senate provision, as modified to specify that the Commissioner consult with the Attorney 


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General of the United States in addition to the United States Immigration and Customs Enforcement, the United States Drug Enforcement Administration, and the United States Department of 

State. The House also requested that the Committee on the Judiciary in the House of Representatives receive a copy of the report 

and that the word ‘‘international’’ be inserted before the word 

‘‘mails.’’

Section 708. Aircraft charter customer and lessee prescreening program 

Senate Section 1117 requires the Comptroller General to assess and report on the status, implementation, and use of the Department of Homeland Security’s aircraft charter customer and lessee pre-screening process. This section requires the report to be 

submitted to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Homeland Security of 

the House of Representatives within 180 days of the date of enactment. 

The House bill does not contain a comparable provision. 

The Conference Report adopts the Senate provision, as modified to require the Comptroller to submit the report within 270 

days of the implementation of the Department of Homeland Security’s aircraft charter customer and lessee prescreening process. 

Section 709. Protection of health and safety during disasters 

Senate Section 1104 authorizes the Department of Health and 

Human Services to establish a coordinated protection, assessment, 

and monitoring program for individuals that suffer from a high exposure level to a substance of concern in disaster areas. The program informs these individuals of the health hazards associated 

with such releases, and monitors the short and long-term health affects of such a release. It allows for the voluntary registry in any 

such program. The section requires the National Academy of 

Sciences to gather a series of subject matter experts and provide 

a report on disaster area health and environmental monitoring and 

provide for recommendations to improve monitoring and response 

activities at the Federal, State, and local level. 

The House has no comparable provision. 

The Conference Report adopts the Senate language. The Conference clarifies that the intent of this provision is to provide for 

the protection, assessment, and monitoring of all responders, 

whether uniformed or volunteer, and those individuals living, 

working, or attending school within the disaster area involving any 

mode of transportation that suffer from a high exposure level to a 

substance of concern in the disaster area. 

COMPLIANCE WITH HOUSE RESOLUTION 1000 

In compliance with H. Res. 1000 (109th Congress), the following provisions have been included in H.R. 4954: 

The bill contains language requiring disclosure under House 

Resolution 1000 on page 46, lines 16 through page 47, line 10. This 

section requires the establishment of an intermodal rail radiation 

detection test center to be located at a port with the majority of its 


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111 

cargo leaving the facility using on-dock, intermodal rail. The language is from an amendment offered by Senator Cantwell. 

The bill also contains language requiring disclosure on page 

50, lines 1 through 10. This section requires the establishment of 

a Border Patrol unit in the United States Virgin Islands. The language is from an amendment offered by Delegate Christensen. 

The bill also contains language requiring disclosure on page 

190, line 16 through page 191, line 3. This section authorizes such 

sums as may be necessary for the Northern Border Air Wing 

Branch located in Great Falls, Montana. The language is from an 

amendment offered by Senator Baucus. 

The bill also contains language requiring disclosure on page 

193, lines 8 through 12. This section amends the conveyance date 

for United States Coast Guard Property in Portland, Maine. The 

language is from an amendment offered by Senator Collins. 

From the Committee on Homeland Security: 

PETER KING, 

DANIEL E. LUNGREN, 

JOHN LINDER, 

ROB SIMMONS, 

DAVID REICHERT, 

MICHAEL T. MCCAUL, 

DON YOUNG, 

BENNIE G. THOMPSON, 

LORETTA SANCHEZ, 

JANE HARMAN, 

BILL PASCRELL, Jr., 

From the Committee on Energy and Commerce: 

JOE BARTON, 

FRED UPTON, 

From the Committee on Transportation and Infrastructure: 

BILL SHUSTER, 

From the Committee on Science: 

SHERWOOD BOEHLERT, 

MIKE SODREL, 

CHARLIE MELANCON, 

From the Committee on Ways and Means: 

WM. THOMAS, 

E. CLAY SHAW, Jr., 

Managers on the Part of the House. 

From the Committee on Homeland Security and Governmental Affairs: 

SUSAN COLLINS, 

NORM COLEMAN, 

R.F. BENNETT, 

From the Committee on Commerce, Science, and Transportation: 

TED STEVENS, TRENT LOTT, KAY BAILEY HUTCHISON, From the Committee on Finance: 

CHUCK GRASSLEY, 


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112 

ORRIN HATCH, MAX BAUCUS, From the Committee on Banking, Housing, and Urban Affairs: 

RICHARD SHELBY, Managers on the Part of the Senate. 

Æ 


jcorcoran on PRODPC62 with REPORTS