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[Senate Report 109-216]
[From the U.S. Government Publishing Office]

109th Congress                                                   Report
                                 SENATE
 2nd Session                                                    109-216
_______________________________________________________________________

                                     

                                                       Calendar No. 364
 
            TRANSPORTATION SECURITY IMPROVEMENT ACT OF 2005

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 1052

DATE deg.February 27, 2006.--Ordered to be printed

       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                       one hundred ninth congress
                             second session

                     TED STEVENS, Alaska, Chairman
                 DANIEL K. INOUYE, Hawaii, Co-Chairman
JOHN McCAIN, Arizona                 JOHN D. ROCKEFELLER IV, West 
CONRAD BURNS, Montana                    Virginia
TRENT LOTT, Mississippi              JOHN F. KERRY, Massachusetts
KAY BAILEY HUTCHISON, Texas          BYRON L. DORGAN, North Dakota
OLYMPIA J. SNOWE, Maine              BARBARA BOXER, California
GORDON H. SMITH, Oregon              BILL NELSON, Florida
JOHN ENSIGN, Nevada                  MARIA CANTWELL, Washington
GEORGE ALLEN, Virginia               FRANK LAUTENBERG, New Jersey
JOHN E. SUNUNU, New Hampshire        E. BENJAMIN NELSON, Nebraska
JIM DEMINT, South Carolina           MARK PRYOR, Arkansas
DAVID VITTER, Louisiana
                    Lisa Sutherland, Staff Director
             Christine Drager Kurth, Deputy Staff Director
                      Ken Nahigian, Chief Counsel
     Margaret Cummisky, Democratic Staff Director and Chief Counsel
 Samuel Whitehorn, Democratic Deputy Staff Director and General Counsel

                                                       Calendar No. 364
109th Congress                                                   Report
                                 SENATE
 2nd Session                                                    109-216

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

            TRANSPORTATION SECURITY IMPROVEMENT ACT OF 2005

                                _______
                                

               February 27, 2006.--Ordered to be printed

                                _______
                                

       Mr. Stevens, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 1052]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1052) to improve transportation 
security, and for other purposes, having considered the same, 
reports favorably thereon with an amendment and recommends that 
the bill (as amended) do pass.

                          Purpose of the Bill

  S. 1052 would set policy, provide agency guidance, authorize 
funding and create new programs addressing the security of all 
modes of transportation, including aviation, rail, maritime, 
pipeline, and the transportation of hazardous materials. The 
legislation also would require greater cooperation and 
coordination between the Departments of Transportation (DOT) 
and Homeland Security (DHS) to delineate and further clarify 
the federal roles and responsibilities with respect to 
transportation safety and security.

                          Background and Needs

  On November 16, 2001, Congress passed the Aviation and 
Transportation Security Act (ATSA) (P.L. 107-71) in response to 
the September 11, 2001, terrorist attacks. ATSA, which was 
signed into law on November 19, 2001, required a new regime for 
aviation security and created the Transportation Security 
Administration (TSA) within DOT to oversee security for all 
modes of transportation. On March 31, 2003, as mandated under 
the Homeland Security Act of 2002 (P.L. 107-296), the TSA was 
transferred from DOT to DHS where it remains a distinct entity 
within DHS.

AVIATION SECURITY

  Aviation security has been the major focus of transportation 
security policy since the terrorist attacks of September 11, 
2001, and was the primary emphasis of the previously cited ATSA 
legislation. ATSA, known in part for mandating a Federalized 
workforce of security screeners to inspect airline passengers 
and their baggage, set out an overarching regime to address 
aviation security needs. It gave the TSA broad authority to 
assess vulnerabilities in the system of aviation security and 
take steps to mitigate these risks. Aviation security policy 
since September 11, 2001 has consisted of two fundamental 
principles: transportation security is national security; and a 
multi-layered strategy will establish redundancies to most 
effectively thwart a potential terrorist attack.
  Upon the creation of TSA as a new Federal agency, it was 
required to meet various Congressional mandates and timelines 
set forth in ATSA to strengthen and coordinate the nation's 
transportation security regime. Additional directives for the 
TSA have been included in a number of appropriations bills, 
including on December 17, 2004, when President Bush signed the 
Intelligence Reform and Terrorism Prevention Act of 2004 
(Public Law 108-458), which added further mandates to bring 
transportation security in the United States in line with the 
recommendations of the National Commission on Terrorist Attacks 
Upon the United States (9/11 Commission). The TSA's progress on 
aviation security has been the subject of considerable 
oversight by Congress over the past four years and continues to 
receive scrutiny as the agency moves forward in fulfilling 
existing obligations and addressing new challenges. Pursuant 
with the recommendations of the 911 Commission, the TSA has 
moved towards a risked-based approach for allocating limited 
security resources to where such resources are most needed.
  Recognizing the significant commitment made to improve air 
transportation security in the United States since September 
11, 2001, S. 1052 focuses on a few primary aviation issues, 
including a provision to consider options for improving the 
collection of aviation passenger security fees, while ensuring 
Congressional review of security fee increase proposals. Other 
aviation security provisions in the legislation would require 
that TSA create a pilot program to establish screener workforce 
internship programs at airports, and prohibit the certification 
of foreign repair stations until TSA and FAA review, audit, and 
develop security regulations for such facilities.

RAILROAD SECURITY

  The terrorist attacks of September 11, 2001, the March 2004 
bombings of commuter trains in Madrid, Spain, and the July 2004 
transit bombings in London, England, heightened concerns about 
the susceptibility of the passenger and freight rail system in 
the United States to terrorist attack. While no similar attack 
has occurred to date against the rail system in the United 
States, the openness and vast size of our rail transportation 
network and the public reports that terrorists might be 
targeting U.S. rail assets \1\ has raised significant concerns 
regarding the various security efforts in place to defend and 
prepare the nation's railroads against a terrorist attack. As a 
result of this intelligence and the attacks overseas, the U.S. 
rail industry has increased its proactive security efforts in 
the face of public concern and potential threats. Similarly, 
DHS raised the national threat level for rail transportation 
systems, which triggered more stringent security requirements 
under homeland security directives aimed at mass transit and 
passenger rail. The change to the threat level also triggered 
modifications to some aspects of individual security plans 
voluntarily adopted by many in the industry.
---------------------------------------------------------------------------
    \1\ In 2002, and on several occasions since, the FBI has warned 
that al-Qaeda may directly target U.S. trains, key rail bridges, and 
sections of track to cause train accidents and derailments. Despite 
these vulnerabilities and the importance of the passenger and freight 
railroad industry to the nation, minimal Federal resources have gone 
towards improving rail security.
---------------------------------------------------------------------------
  The nation's freight railroads operate more than 140,000 
miles of track over which nearly 28 million carloads are 
transported annually and provide the primary transportation of 
essential commodities vital to the U.S. economy, including the 
majority of coal used in electricity generation, over nine 
million trailers and containers, and two million carloads of 
chemicals. \2\ The magnitude of rail operations preclude 
constant monitoring of all track and facilities and, like 
passenger rail systems, makes the freight rail system 
vulnerable to terrorist acts. There are seven Class railroads 
\3\ and more than 550 total freight railroads operating in the 
United States. This network transports an estimated 42 percent 
of all domestic intercity freight. Inter-modal freight rail 
traffic has more than tripled since 1980 from 3.1 million 
trailers and containers to 11 million in 2004. For the week of 
August 20, 2005, U.S. freight railroads originated more inter-
modal cargo containers (179,472) than in any previous week on 
record, which surpassed the previous high that was established 
three weeks earlier. DOT projects that freight traffic via rail 
will increase nearly 70 percent by 2020. The problem of 
securing such a vast system is compounded by the variety of 
freight hauled--as diverse as dry bulk (e.g., grain) and 
hazardous materials (e.g., chlorine).
---------------------------------------------------------------------------
    \2\Association of American Railroads, Railroad Facts, 2003 Edition.
    \3\U.S. Class I Railroads are line haul freight railroads with 
operating revenue in excess of $277.7 million. In 2004, the U.S. Class 
I railroads were: BNSF Railway, CSX Transportation, Canadian National's 
Grand Trunk Corporation, Kansas City Southern Railway, Norfolk Southern 
Combined Railroad Subsidiaries, Canadian Pacific's Soo Line Railroad, 
and Union Pacific Railroad.
---------------------------------------------------------------------------
  Similarly, the size and scope of the U.S. passenger rail 
network presents security challenges. In 2005, more than 25 
million passengers rode intercity passenger trains and 
approximately 3.5 billion passengers rode public transit and 
commuter rail services, such as Washington's Metrorail system, 
Chicago's Metra commuter system and Maryland's MARC service. 
Along with critical rail infrastructure and equipment, 
passenger rail facilities and stations, which often serve as 
central hubs for multiple public transportation services, 
represent tempting targets for terrorist attacks. The RAND 
Corporation estimated that there were a total of 181 terrorist 
attacks on trains and rail-related targets worldwide between 
1998 and 2003, an average of 30 per year. Brian Jenkins of the 
RAND Corporation has noted that, ``for terrorists determined to 
kill in quantity and willing to kill indiscriminately, public 
transportation is an ideal target. It offers terrorists ease of 
access and escape. Crowds of strangers guarantee anonymity. 
Contained environments enhance the effect of explosives. 
Attacks on public transport also cause disruption and alarm--
traditional terrorist goals.''
  Recognizing the security challenges facing the rail sector, 
the Committee has held numerous hearings and favorably reported 
several rail security enhancement proposals since 2001. The 
rail security provisions of S.1052, contained in title III, 
represent the latest iteration of this effort and incorporate 
updated versions of provisions contained within the Rail 
Security Act of 2004, which passed the Senate by unanimous 
consent in the 108th Congress, after being favorably 
reported by the Committee.

MARITIME SECURITY

  Port security in the United States is complex because of the 
varied nature and structure of the maritime industry and the 
geographic scope of our system of waterways. Unlike many 
nations, the United States has no national port authority: 
jurisdiction is shared by Federal, State, and local 
governments. Port authorities in the United States are 
instruments of State or local governments, established by State 
or local enactment. The U.S. Constitution does not grant 
regulation over seaports to the Federal government; however, 
the Constitution does explicitly vest the authority to regulate 
navigable waterways to the Federal government, a task largely 
delegated to the United States Army Corps of Engineers and the 
United States Coast Guard. In addition, the Federal government 
is delegated the right to regulate interstate and foreign 
commerce, and pursuant to this authority, has plenary powers to 
regulate port practices.
  The United States has more than 1,000 harbor channels and 
25,000 miles of inland, intra-coastal, and coastal waterways 
that serve over 360 ports. There are approximately 3,700 
terminals located at these ports that facilitate passenger and 
cargo movements. These waterways and ports link to 152,000 
miles of railways, 460,000 miles of underground pipelines, and 
45,000 miles of interstate highways. The U.S. marine 
transportation system moves more than 2 billion tons of 
domestic and international freight, imports 3.3 billion tons of 
oil, and services 134 million passengers by ferry. The system 
also hosts more than 6 million cruise ship passengers. The vast 
majority of ships entering U.S. ports are foreign owned and 
crewed, and, in 2001, roughly 5,400 commercial ships made over 
60,000 calls at U.S. ports.
  The U.S. maritime transportation system provides more than 
$742 billion to U.S. gross domestic product and creates 
employment for more than 13 million citizens. U.S. ports handle 
more than 95 percent of our nation's overseas trade, and the 
total volume of goods shipped to or from the United States is 
expected to double over the next 20 years. The top 50 U.S. 
ports handle approximately 90 percent of all cargo tonnage, and 
25 of those ports handle 98 percent of all container shipments. 
The maritime transportation system is vital to the continued 
operation of U.S. retailers who import much of the merchandise 
that they sell, and U.S. manufacturers who commonly rely on 
foreign components for their products.
  To establish a framework for maritime security standards, the 
Senate Committee on Commerce, Science, and Transportation 
developed legislation that Congress passed, the Maritime 
Transportation Security Act of 2002 (MTSA). MTSA requires 
Federal agencies, State and local authorities, and private 
sector stakeholders to work together to define critical 
portions of the U.S. maritime transportation system and 
determine how best to protect these assets against terrorist 
attacks.

OTHER SURFACE TRANSPORTATION SECURITY

  While much attention has been focused on the security needs 
of domestic commercial aviation, and to a lesser extent, the 
security needs of the U.S. maritime and rail industries, little 
has been done at the Federal level to address security 
vulnerabilities within the motor carrier, intercity bus, and 
pipeline industries.

MOTOR CARRIER SECURITY

  The motor carrier industry is the backbone of the nation's 
freight system, carrying 85 percent of domestic cargo by value 
and 70 percent by weight. Nearly everything American consumers 
utilize throughout a given day has been transported by a motor 
carrier. Even freight carried by other modes such as aviation, 
rail, and maritime often depends on trucking at some point 
through the supply chain. Trucks move cargo from airports, rail 
yards, and seaport terminals. In 2003, U.S. trucking hauled 9.1 
billions of freight and employed 5.6 million people in 
trucking-related fields \4\. Trucking is also an essential part 
of North American international trade hauling two-thirds (67 
percent) of the goods transported between the United States and 
Canada and over four-fifths (80 percent) of the goods 
transported between the United States and Mexico \5\.
---------------------------------------------------------------------------
    \4\ Ibid.
    \5\ Ibid.
---------------------------------------------------------------------------
  Truck security has become an important issue both because of 
the size and essential nature of the industry, and the 
potential ease of access to trucks. With two deadly domestic 
terrorist attacks at the World Trade Center in 1993 and on the 
Oklahoma City Federal Building in 1995, the United States had 
already faced truck-based terrorism before the attacks of 
September 11, 2001. Despite this, Federal involvement in truck 
security has been limited, with the bulk of security efforts 
being implemented on an ad-hoc basis by individual companies or 
by groups representing sectors of the motor carrier industry.
  Presently, there is only one motor carrier security program 
specifically mandated by statute. Acting out of concern for the 
security of the transportation of hazardous materials by truck, 
Congress authored legislation requiring the DHS to implement a 
program to ensure that commercial drivers that transport 
hazardous materials do not pose a security threat to the 
nation. \6\ Under the requirements of the statute, a driver 
must undergo a security background check as a prerequisite for 
hazardous materials endorsement on a commercial driver's 
license. The only other mandatory security program is a DOT 
security regulation requiring all shippers of hazardous 
materials to develop and implement security plans.
---------------------------------------------------------------------------
    \6\P.L. 107-56, title X, Sec. 1012(a)(1), 115 Stat. 396, October 
26, 2001, amended August 10, 2005, P.L. 109-59 (``Safe, Accountable, 
Flexible, Efficient Transportation Equity Act: A Legacy for Users'' or 
``SAFETEA-LU'').
---------------------------------------------------------------------------
  The Federal government has implemented a few voluntary 
security initiatives for this transportation sector. The most 
notable truck freight security initiatives are the U.S. Customs 
and Border Protection (CBP) program known as the ``Customs-
Trade Partnership Against Terrorism (C-TPAT)'' and the TSA 
partnership with American Trucking Associations (ATA) called 
``Highway Watch.'' To address increasing security checks at 
U.S. border-crossings with Mexico and Canada following the 
September 11 attacks, motor carriers agreed to participate in 
C-TPAT, a voluntary program for shipments between the United 
States and Canada, or the United States and Mexico. C-TPAT 
participants agree to follow a set of security guidelines 
outlined in written agreement in return for reduced delays at 
border-crossing from Customs inspections \7\. To gain 
additional expedited treatment at the U.S. borders, motor 
carriers may choose to participate in the Free and Secure Trade 
(FAST) program, which utilizes electronic transmission of 
shipping data and use of transponder technologies and barcode 
technology for verification. Participation in C-TPAT is a 
prerequisite to membership in the FAST program. While C-TPAT 
and FAST are focused on cross-border cargo clearance, Highway 
Watch focuses on security training for the drivers. Through 
Highway Watch, transportation professionals are trained to 
recognize and report potential safety and security threats. DHS 
provides the funding and ATA administers the program.
---------------------------------------------------------------------------
    \7\ U.S. Customs and Border Protection. Securing the Global Supply 
Chain: Customs-Trade Partnership Against Terrorism (C-TPAT) Strategic 
Plan. 2004. Available at http://www.cbp.gov/linkhandler/cgov/import/
commercial_enforcement/ctpat/ctpat--strategicplan.ctt/
ctpat_strategicplan.pdf. Accessed January 2006.
---------------------------------------------------------------------------
  These programs begin to address the security concerns of the 
85 percent of domestic cargo that moves by trucks. However, 
these modest steps highlight the need for more robust action. 
The motor carrier and truck security provisions contained in 
title IV of S.1052 takes the next steps by focusing on the key 
issues related to the secure transportation of hazardous 
materials, such as routing, tracking, training, and 
enforcement.

INTERCITY BUS SECURITY

  Along with automobile, air, and rail services, intercity bus 
service has long been one of the primary modes of 
transportation within the United States. The intercity bus 
industry serves more than 5,000 destinations in the United 
States. The industry comprises mostly small businesses. Sixty-
five percent of known carriers operate fewer than 10 buses, but 
those smallest of companies carry an estimated 97 million 
passengers. Over-the-road buses transport approximately 774 
million passengers annually and are the only viable means of 
transportation for many people throughout the country. Between 
fixed routes, intercity, community services, charter and tour, 
and airport shuttle services, the industry has a significant 
impact in the lives of many Americans. However, most important, 
they serve thousands of communities that have no other form of 
intercity public transportation, and provide the only 
affordable means of transportation for millions in urban areas.
  Since September 11, Congress has noted the importance of 
making intercity bus facilities secure, and have appropriated 
funding for security enhancement and training. $10 million was 
appropriated to the DHS for intercity bus security grants 
program in both fiscal years 2005 and 2006. \8\ Funds have been 
used for priority upgrades such as monitoring, tracking, and 
communication upgrades, including GPS tracking technology, 
cellular communications or identification materials, and 
security training. This funding, however, is not enough. 
Federal financial support is needed for system-wide 
improvements, such as passenger and baggage screening in 
terminals; implementation of a ticket identification system; 
emergency communications systems linked to police and emergency 
personnel; enhanced driver compartment security; increased 
security training; development and maintenance of information 
and communications systems with law enforcement; installation 
of cameras and video surveillance equipment; and other measures 
to make buses, terminals, and garages more secure. S. 1052 
would provide $50 million for these needed system-wide security 
improvements.
---------------------------------------------------------------------------
    \8\ Department of Homeland Security Appropriations, 2006, P.L. 109-
90, October 18, 2005; and P.L. 108-334, October 18, 2004.
---------------------------------------------------------------------------

PIPELINE SECURITY

  The U.S. liquid pipeline industry is large, diverse and vital 
to the economy. Comprised of approximately 200,000 miles of 
pipes in all of the fifty States, during 2001, liquid pipelines 
carried more than 40 million barrels per day, or 4 trillion 
barrel-miles, of crude oil and refined products. \9\ Because of 
the volume that must be transported, pipelines are the only 
feasible method for moving the enormous quantities of petroleum 
and other key products that America requires to keep going each 
day. It is projected that the liquid pipeline industry will 
grow significantly during the next 25 years.
---------------------------------------------------------------------------
    \9\ Richard Rabinow, The Liquid Pipleline Industry in the United 
States: Where It's Been, Where It's Going, Association of Oil Pipe 
Lines, April 2004.
---------------------------------------------------------------------------
  Pipeline operators have managed the integrity, safety, and 
security of their system for years. By April 1, 2003, operators 
of 95 percent of the oil pipeline infrastructure had certified 
with DOT their compliance with contingency planning guidelines. 
While pipeline operators have voluntarily conducted 
vulnerability assessments of critical pipeline facilities, 
there is no security requirement to do so, and thus, no 
enforcement. The pipeline security provisions of S.1052 would 
address this security gap by requiring the Federal government 
to develop a Pipeline Security and Incident Recovery Plan to 
provide for increased security support to the most critical 
transmission pipeline infrastructure and operations during 
periods of elevated threat, and ensure no disruption of 
commerce in the event of an incident. The bill also would 
require DHS to issue pipeline security regulations that include 
provisions for inspection of facilities and enforcement action.

                         Summary of Provisions

  The provisions of the proposed aviation security title in S. 
1052 would: preclude TSA from increasing the aviation security 
infrastructure fee without submitting the proposed rule to 
Congress; require TSA to study the feasibility of collecting 
the commercial aviation passenger security fee directly from 
passengers at, or before, they reach the airport through a 
system developed or approved by TSA, including the use of 
vending kiosks, other automated vending devices, the Internet, 
or other remote vending sites; require TSA to establish a pilot 
program at not more than three airports for training students 
as interns to perform screening of passengers and property in 
exchange for a commitment to become a screener post-graduation; 
and preclude the FAA from certifying foreign repair stations if 
DHS fails to issue repair station regulations within 90 days of 
the enactment of this Act.
  The major provisions of the rail security title of S. 1052 
would: create a new grant program within DHS to assist Amtrak, 
freight railroads, and other stakeholders in upgrading security 
across the railroad system; provide funding through DOT for 
security and safety enhancements to Amtrak railroad tunnels in 
New York, Washington, D.C., and Baltimore; create a rail 
security research and development program; encourage the 
deployment of rail car tracking equipment for high-hazard 
materials rail shipments; require railroads shipping high 
hazard materials to create threat mitigation plans; require DHS 
and DOT to clarify their roles for rail security and safety; 
issue guidance for a rail worker security training program; and 
provide for a whistleblower protection program for rail workers 
who report security concerns.
  The major provisions of the maritime security title of S. 
1052, augmenting MTSA, would: require the establishment of 
inter-agency operational centers for port security at all high 
priority ports; establish prioritization of vessels to resume 
trade following an incident; improve tracking data for cargo; 
and establish technical requirements for improved cargo 
inspection; and develop plans for enhanced random physical 
inspection of containers. The legislation also would serve to 
strengthen current DHS initiatives for cargo as well as secure 
systems of international inter-modal transportation.
  S. 1052 also addresses transportation security issues related 
to pipelines and pipeline facilities, motor carriers, the 
transport of hazardous materials by all modes, and over-the-
road buses. The major provisions of the proposed surface 
transportation title of S. 1052, in addition to those described 
for railroad security, would: strengthen hazardous material 
transportation security efforts; propose security guidelines 
for truck rental and leasing operations; require the 
development of pipeline security incident recovery plans; and 
provide grants for improving over-the-road bus and bus terminal 
security.

                          Legislative History

  Chairman Stevens and Co-Chairman Inouye introduced S. 1052, 
``The Transportation Security Improvement Act of 2005'' on May 
17, 2005. Senators Boxer, Dorgan, Lautenberg, Rockefeller, 
Snowe, Cantwell, and Pryor originally cosponsored the bill.
  During the 109th Congress, the Committee held multiple 
hearings on transportation security. On May 17, 2005, the 
Committee held a hearing chaired by Chairman Stevens on 
measures that have been taken since September 11, 2001, to 
secure U.S. ports. Those testifying before the Committee were 
members of Congress, representatives of CBP, U.S. Coast Guard, 
DHS, the General Accountability Office (GAO), and various trade 
associations.
  On October 20, 2005, the Committee held a hearing chaired by 
Chairman Stevens on the state of passenger and freight rail 
security, as well as relevant provisions of S. 1052. Those 
testifying before the Committee were representatives of TSA, 
the Federal Railroad Administration (FRA), GAO, Amtrak, and 
various business and labor associations.
  On November 17, 2005, the Committee met in Executive Session 
during which S. 1052 was considered. A substitute amendment 
that streamlined the provisions of S. 1052 was offered by 
Chairman Stevens and Co-Chairman Inouye, and approved by the 
Committee unanimously by voice vote. Several amendments filed 
by Senators Cantwell, Pryor, Kerry, Lautenberg and Dorgan also 
were offered and incorporated into S. 1052 via a manager's 
package.
  The amendments sponsored by Senator Cantwell would increase 
research and development for ferry security, increase security 
for car ferries entering U.S. waters from Canada, and ensure 
that the strategic plan for transportation research and 
development is aligned with interoperable communications 
research and development in Federal agency strategic plans. The 
amendments sponsored by Senator Pryor would require the DHS 
Secretary to transmit a preliminary report of security issues 
related to the trucking industry, require demonstration 
projects for alternative collection methods for passenger 
security fees, and require that pilot programs for employee 
retention internships be conducted at three airports of various 
size facilities. The amendment sponsored by Senators Kerry, 
Lautenberg and Dorgan would repeal TSA's exemption from Federal 
procurement laws under the Federal Acquisition Regulation 
(FAR).
  The substitute and manager's amendments were adopted by the 
Committee and amended to the bill; the Committee ordered the 
bill reported.

                            Estimated Costs

  In compliance with subsection (a)(3) of paragraph 11 of rule 
XXVI of the Standing Rules of the Senate, the Committee states 
that, in its opinion, it is necessary to dispense with the 
requirements of paragraphs (1) and (2) of that subsection in 
order to expedite the business of the Senate.
  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

      [Insert CBO letter, attached as pages 9-- through 9--] deg.

                      Regulatory Impact Statement

                       NUMBER OF PERSONS COVERED

  S. 1052 is intended to improve transportation security by 
making modifications to ATSA and MTSA. While S. 1052 affects 
DHS and DOT, it would be consistent with the number of 
individuals affected by ATSA and MTSA.

                            ECONOMIC IMPACT

  S. 1052 is not expected to have an adverse impact on the U.S. 
economy. It is anticipated that titles I-V would have positive 
economic impacts to their respective areas and should provide 
significant support to the corresponding transportation sector 
modes. The bill would authorize the necessary funding to 
establish a more secure system by requiring DHS, and in some 
cases DOT, as well as the corresponding industries to take 
steps to protect the system.

                                PRIVACY

  S. 1052 would have minimal effect on the privacy rights of 
individuals.

                               PAPERWORK

  The Committee anticipates a slight increase in paperwork 
burdens on requirements for private individuals or businesses. 
In those areas where the bill does require additional 
paperwork, it is aimed at improving the transportation security 
infrastructure.
  S. 1052 would require a range of plans, communications, 
budget analyses, agreements, and rulemakings. In certain 
sections, such as section 103, the Secretary of DHS would be 
required to promulgate strategic plans to Congress, or in the 
case of sections 310 and 403, the Secretaries of DHS and DOT 
would be required to develop and issue detailed guidance to the 
pertinent industry stakeholders, while section 507 would 
require that DHS develop a plan for random physical inspection 
of shipping containers. Two provisions of S. 1052, section 313 
and 408, would require that the Secretaries of DHS and DOT 
enter into an annex of a previously established Memorandum of 
Agreement to delineate roles and responsibilities. Section 315 
would require the DHS and DOT Secretaries to develop a national 
plan for improved public outreach, which would entail 
communication with citizens, although not necessarily in print 
format. Section 407 would require the DHS Secretary to 
promulgate regulations; section 506 would require initiation of 
a rulemaking; section 508 would require promulgation of 
standards and procedures for cargo screening and section 511 
would require the DHS Secretary to issue a final rule for 
transportation security cards.
  The paperwork burden on industry or private individuals 
concerns plans that would be developed and/or submitted for 
review to DHS and DOT: these plans would be used for strategic 
purposes or would be a pre-requisite for distributing grants. 
For example, in section 312, rail carriers would be required to 
develop and submit security threat mitigation plans which would 
be updated and resubmitted for review, while section 401 would 
require certain motor carriers to develop and maintain written 
route plans. Illustrations of grant requirements are found in 
section 304, where the DOT Secretary would have to approve 
plans submitted by Amtrak before distributing grants for fire 
and life-safety improvements; in section 307, where the DHS 
Secretary would be authorized to award grants; however, prior 
to award, applicants would have to follow qualification 
procedures, including a requirement that the applicant have a 
security plan; and in section 410, where the DHS Secretary 
would not be required to award grants until private bus 
operators submitted a plan for making security improvements.

                      Section-by-Section Analysis

                        TITLE I--AUTHORIZATIONS

Section 101. Transportation Security Administration authorization.
  This section would authorize sums to be appropriated to DHS 
for each of fiscal years 2007 through 2009 for aviation, 
surface transportation security, intelligence, research and 
development, and administration; $15.75 billion for aviation 
security; $723 million for surface transportation security; $96 
million for intelligence; and $1.6 billion for administration.
Section 102. Department of Transportation authorization.
  This section would authorize sums to be appropriated to DOT 
for each of fiscal years 2007 through 2009 to carry out title 
III and IV of this Act. The total sums authorized to be 
appropriated are $671 million over three years.
Section 103. Technology for transportation security.
  Subsection (a) of this section would amend section 
70107(i)(2)(B) of title 46, U.S.C. to insert ``not less than'' 
after Secretary.
  Subsection (b) of this section would require the Secretary to 
ensure that beginning after the date of enactment of this Act, 
not less than eight percent of amounts appropriated to TSA and 
the DHS Directorate of Science and Technology are used for 
research and development for maritime security projects or 
programs, including ferry systems, and not less than two 
percent of such amounts are used for rail security projects or 
programs.
  Subsection (c) of this section would require within 120 days 
of enactment of this Act the DHS Secretary to promulgate a 
strategic plan for transportation research and development, and 
update the plan not less than every two years. In promulgating 
the plan, the Secretary would be required to ensure the 
research needs of all major modes of transportation, identify 
goals and objectives, include an adequate amount of basic 
research, define the research and development roles of TSA and 
the DHS Directorate of Science and Technology, coordinate 
transportation research, including interoperable 
communications, with other Federal agencies, and base the plan 
on vulnerability and criticality assessments. This subsection 
also would require the Homeland Security Science and Technology 
Advisory Committee to evaluate the plan annually and recommend 
changes to the research program under the plan.
  The Secretary would be required to submit to Congress a copy 
of the strategic plan, as well as a copy of the annual 
evaluations and recommendations made by the Advisory Committee.
  Subsection (d) would authorize the DHS Secretary to transfer 
up to $15,000,000 to the National Institute of Science and 
Technology to be obligated and expended for a focused program 
in transportation security.
  Subsection (e) would amend title III of the Homeland Security 
Act of 2002 by adding a new section 314. This new section would 
require the DHS Secretary, acting through the Under Secretary 
for Science and Technology, to establish a competitive research 
program within the Directorate. A Director appointed by the 
Secretary would head the program. The Director would: establish 
a co-funding mechanism for States and academic facilities to 
support their security-related science and technology programs; 
provide for conferences and other assistance to researchers and 
academic institutions on topics related to science and 
technology expertise; monitor States' efforts to develop 
programs that support DHS's mission; implement a merit review 
program to ensure the quality of research conducted with 
program funding; and provide annual reports to the Secretary on 
the progress and achievements of the program.
  This subsection would require the Director to provide 
assistance under the program for research and development 
projects that are related to or qualify as homeland security 
research. Such assistance may take the form as grants, 
contracts, or cooperative agreements. For the first three 
fiscal years of the program, assistance would be limited to 
academic institutions located in States with academic 
institutions with a grant from, or contract or cooperative 
agreement with, the National Science Foundation.
Section 104. Reorganizations.
  This section would require the DHS Secretary to notify 
Congress in writing not less than 15 days before reorganizing 
or renaming offices, reorganizing programs or activities, or 
contracting out or privatizing any functions or activities 
presently performed by Federal employees.
  The Committee is concerned that reorganizations of DHS and 
TSA have been undertaken without sufficient notice or 
explanation to the Committee. While such reorganization may be 
necessary and appropriate from time to time, the undertaking 
without notice or explanation has complicated the Committee's 
efforts to oversee and analyze DHS's programs, staff, and 
policies within the Committee's jurisdiction. This section 
would require that the Committee be notified of substantial 
changes in DHS or TSA structure or policy before they occur to 
ensure that the Committee can perform its oversight function 
over areas within its jurisdiction.
Section 105. TSA acquisition management policy.
  This section would amend section 114 of title 49 U.S.C. by 
striking subsection (o), thus repealing TSA's exemption from 
Federal procurement laws under FAR. This section would take 
effect 180 days after the date of enactment of this Act.

                 TITLE II-- IMPROVED AVIATION SECURITY

Section 201. Post-fiscal year 2006 air carrier security fees.
  This section would amend section 44940(a)(2) of title 49, 
U.S.C., by precluding the Assistant Secretary of TSA from 
increasing the aviation security infrastructure fee after 
September 30, 2006, unless the fee or increase is imposed by 
rule, and the rule is submitted to Congress not less than 60 
days before its proposed effective date.
Section 202. Alternative collection methods for passenger security fee.
  This section would require the Assistant Secretary of TSA to 
study the feasibility of collecting the commercial aviation 
passenger security fee authorized by section 44940 of title 49, 
U.S.C., directly from passengers at, or before they reach, the 
airport through a system developed or approved by TSA, 
including the use of vending kiosks, other automated vending 
devices, the Internet, or other remote vending sites.
  Based on the study required by this section, the Secretary 
would be required to develop such alternative collection 
systems as the Assistant Secretary determines to be feasible. 
The Secretary would be required to report to Congress within 
six months the results of the study, along with recommendations 
the Secretary deems appropriate. If the Secretary determines 
that a system of direct collection from passengers is feasible, 
the Secretary would be required to conduct demonstration 
projects at no more than three airports within one year of 
submitting the report to Congress.
Section 203. Employee retention internship program.
  This section would require the Assistant Secretary of TSA to 
establish a pilot program at not more than three airports for 
training students to perform screening of passengers and 
property. The program would be an internship for pre-employment 
training of final-year students from public and private 
secondary schools. Students would be compensated and be 
required to agree, as a condition of participation in the 
program, to accept employment as a screener upon successful 
completion of the internship and upon graduation from the 
secondary school. The Assistant Secretary would be required to 
conduct these pilots at airports of various sizes, small, 
medium and large.
Section 204. Repair station security.
  Subsection (a) of this section would preclude the 
Administrator of the Federal Aviation Administration from 
certifying foreign repair stations under part 145 of title 14, 
Code of Federal Regulations (CFR), if the regulations required 
by section 44924(e) of title 49, U.S.C., are not issued within 
90 days of the enactment of this Act.
  Subsection (b) of this section amends section 44924 of title 
49, U.S.C., and would mandate a 6-month deadline for security 
review and audit, rather than 18 months.

                  TITLE III -- IMPROVED RAIL SECURITY

Section 301. Short title.
  Section 301 would indicate that this title may be cited as 
the ``Rail Security Act of 2005.''
Section 302. Rail transportation security risk assessment.
  This section would require the DHS Secretary to establish a 
task force to complete a vulnerability and risk assessment of 
freight and passenger rail transportation. The Secretary would 
be required to take into account actions taken or planned by 
both public and private entities. Based on the findings of the 
task force, within 180 days of enactment of this Act, the 
Secretary would be required to develop and report to Congress 
prioritized recommendations for improving rail security, 
including any recommendations for: improving the security of 
tunnels, bridges, and other infrastructure; deploying explosive 
detection technologies and surveillance equipment; training 
railroad or railroad shipper employees; educating rail 
passengers; and identifying immediate and long-term costs 
associated with addressing risks. This report, containing 
prioritized recommendations, plans and cost estimates for the 
security of the domestic rail system, would be updated and 
submitted annually to Congress.
  The Secretary would be required to include in his 
recommendations a plan for the Federal government to provide 
increased security support at high threat levels of alert, a 
plan for coordinating existing and planned rail security 
initiatives undertaken by the public and private sectors, and a 
contingency plan developed in conjunction with the intercity 
and commuter passenger railroads to ensure the continued 
movement of freight and passengers in the event of an attack. 
This section would authorize to be appropriated $5,000,000 for 
fiscal year 2007 to carry out this section.
  The Committee has long awaited a comprehensive rail security 
risk assessment from DHS and TSA, and the enactment of this 
provision would be intended to hasten its development. 
Recognizing that, in addition to TSA's lead role, DOT, other 
DHS agencies, and other Federal agencies contribute towards 
Federal rail security efforts, this provision envisions the 
establishment of a task force led by the DHS Secretary to 
develop the assessment. The Committee also hopes that this 
process will help led to the further delineation of roles and 
responsibilities between the Federal entities involved.
Section 303. System-wide Amtrak security upgrades.
  This section would authorize the DHS Secretary to make grants 
to Amtrak to: secure major tunnel access points in New York, 
Baltimore, and Washington, D.C.; secure Amtrak trains and 
stations; obtain a watch list identification system and 
interoperable communication system; hire additional police and 
security officers; and expand emergency preparedness efforts. 
The Secretary would be authorized to distribute grants to 
Amtrak for projects contained in a system-wide security plan 
approved by the Secretary. The Secretary would be required to 
ensure that grants are distributed to areas outside of the 
Northeast Corridor, consistent with the risk assessment 
required under section 302 and in accordance with the highest 
security needs of the Amtrak system.
  This section would authorize to be appropriated $63,500,000 
for fiscal year 2007, and $30,000,000 for each of fiscal years 
2008 and 2009 for the DHS Secretary to carry out this section.
Section 304. Fire and life-safety improvements.
  This section would authorize the DOT Secretary to make grants 
to Amtrak for fire and life-safety improvements to Amtrak 
tunnels on the Northeast Corridor.
  This section would authorize $190,000,000 in funding for DOT 
for each of fiscal years 2007 through 2009 to make fire and 
life-safety improvements to the six New York tunnels; 
$19,000,000 for each of fiscal years 2007 through 2009 for 
improvements of the Baltimore & Potomac and Union tunnels in 
Baltimore, Maryland; and $13,333,000 for each of fiscal years 
2007 through 2009 for improvements of the Washington, D.C., 
Union Station tunnels. The DOT Secretary would be required to 
approve plans submitted by Amtrak before distributing grants. 
In addition, the Secretary may consider the feasibility of 
seeking a financial contribution from other rail carriers 
towards the cost of the project. This section also would 
authorize $3 million for the preliminary design of a new rail 
tunnel in downtown Baltimore, Maryland to provide redundancy 
and augment existing capacity.
  The amounts authorized by this section would allow Amtrak to 
complete ongoing safety and security improvements primarily 
focused on improving access and egress to and from Amtrak's 
major Northeast Corridor rail tunnels and better lighting and 
ventilation.
Section 305. Freight and passenger rail security upgrades.
  This section would authorize the DHS Secretary to make grants 
to freight railroads, the Alaska Railroad, hazardous materials 
shippers, owners of rail cars used to transport hazardous 
materials, institutions of higher education, State and local 
governments, and, through the DOT Secretary, Amtrak, for full 
or partial reimbursement of costs incurred to prevent or 
respond to acts of terrorism, sabotage, or other 
vulnerabilities or risks. The DHS Secretary would be required 
to adopt necessary procedures to ensure that grants made under 
this section are expended in accordance with the purposes of 
this Act. Eligible activities for funding under this program 
include: the development of secure and redundant communications 
and tracking systems; explosive detection and screening 
equipment; intercity passenger train and facility security; 
hazardous materials rail transportation security; employee 
security training; and canine teams and additional security 
personnel. Grants available to Amtrak through this program 
would be limited to no more than $45 million per year to ensure 
that adequate funding is available for other purposes and to 
other entities.
  This section would authorize to be appropriated (subject to 
certain limitations) $100,000,000 in funding for DHS for each 
of fiscal years 2007 through 2009 for the Secretary to carry 
out this section.
Section 306. Rail security research and development.
  This section would require the DHS Secretary, in conjunction 
with the DHS Under Secretary for Science and Technology and the 
Assistant Secretary for TSA, and in consultation with the DOT 
Secretary, to carry out a research and development program for 
the purpose of improving freight and intercity passenger rail 
security. In carrying out this section, the DHS Secretary would 
be required to coordinate with other research and development 
initiatives at DOT. This section would authorize to be 
appropriated $35,000,000 in funding for DHS for each of fiscal 
years 2007 through 2009 for the Secretary to carry out this 
section.
  The Committee believes that technology is an essential aspect 
of efforts to improve security of the nation's railroads and 
seeks to further the development of new, or the adaptation of 
existing, technology for rail security uses. The Committee 
expects this program to be a joint effort between DHS's Science 
and Technology Directorate and TSA, with each agency providing 
expertise and context to the endeavor.
Section 307. Oversight and grant procedures.
  This section would authorize the DHS Secretary to use up to 
.5 percent of amounts made available under the Rail Security 
Act of 2005 to enter into contracts for the review of proposed 
capital projects and related program management plans and to 
oversee construction of such projects. The Secretary would be 
required to prescribe procedures and schedules for the awarding 
of grants under this Act, including application and 
qualification procedures.
Section 308. Amtrak plan to assist families of passengers involved in 
        rail passenger accidents.
  This section would require, not later than six months after 
the date of enactment of this Act, Amtrak to submit to the 
Chairman of the National Transportation Safety Board (NTSB), 
the DOT Secretary and the DHS Secretary, a plan for addressing 
the needs of families of passengers involved in any rail 
passenger accident involving an Amtrak intercity train and 
resulting in loss of life. The NTSB and various passenger 
carriers currently offer assistance to the families of 
passengers involved in transportation accidents. This provision 
would require Amtrak, as well as enable NTSB, to offer similar 
services to those impacted by accidents involving Amtrak 
trains. This new section would authorize to be appropriated 
$500,000 in funding for fiscal year 2007 from this Act for the 
DOT Secretary to carry out this new section.
Section 309. Northern border rail passenger report.
  This section would require the DHS Secretary, in consultation 
with the DOT Secretary, heads of other appropriate Federal 
departments and agencies, and the National Railroad Passenger 
Corporation, within 180 days of enactment of this Act, to 
submit a report to Congress that contains: a description of the 
current system for screening passengers and baggage on rail 
service between the United States and Canada; an assessment of 
the current program to provide pre-clearance of airline 
passengers between the United States and Canada; an assessment 
of the current program to provide pre-clearance of freight 
railroad traffic between the United States and Canada; 
information on progress by the Federal government towards 
finalizing a bilateral protocol with Canada that would provide 
for pre-clearance of passengers on trains operating between the 
United States and Canada; a description of legislative, 
regulatory, budgetary, or policy barriers to providing pre-
screened passenger lists for such passengers; a description of 
the Canadian position with respect to pre-clearance; a draft of 
any changes to Federal law necessary to allow for pre-
screening; and a feasibility analysis of reinstating in-transit 
inspections onboard international Amtrak trains.
  The Committee is concerned that passenger and baggage 
screening procedures at rail lines on the northern border are 
seriously delaying Amtrak trains. The Committee understands 
that delays at the border in Michigan were so severe that 
Amtrak and its connecting Canadian rail carrier, VIA Canada, 
were forced to discontinue service between Chicago and Toronto. 
While the Committee supports robust border protection, the 
process used should not unduly impact Amtrak service when 
possible. The Committee expects the DHS Secretary to work with 
agencies within the Department to minimize delays affecting 
trans-national Amtrak passengers at the border.
Section 310. Rail worker security training program.
  This section would require the DHS and DOT Secretaries, 
within 180 days after the enactment of this Act, to work with 
law enforcement officials, and terrorism and rail experts, to 
develop and issue detailed guidance for a railroad worker 
security training program to prepare front-line workers for 
potential security threats. This section also would require 
railroad carriers to adopt a worker security training program 
in accordance with the guidance and submit it to the DHS 
Secretary for review and comment. Within one year after the 
Secretary reviews the rail carriers' training programs, the 
railroad carriers would be required to complete the training of 
front-line workers.
  The Committee is concerned that while many rail carriers may 
have developed security training program plans, that not all 
frontline rail workers have received training. Testimony before 
the Committee highlighted this issue as the plans have been 
developed, but those plans need to be implemented more 
robustly. Additionally, the Committee believes that labor 
organizations representing rail workers should play a stronger 
role providing security training and awareness to their 
members. The guidance developed by Secretaries through this 
section should reflect these concerns and also take into 
account the different security concerns, resources, and 
expertise associated with different types and sizes of rail 
carriers.
Section 311. Whistleblower protection program.
  This section would preclude rail carriers from discharging a 
railroad employee or otherwise discriminate against a railroad 
employee because the employee: provided, caused to be provided, 
or is about to provide, to the employer or the Federal 
government information relating to a reasonably perceived 
threat to security; provided, caused to be provided, or is 
about to provide testimony before a Federal or State 
proceeding; or refused to violate or assist in violation of any 
law or regulation related to rail security. This section also 
addresses dispute resolution, procedural requirements, election 
of remedies, and disclosure of identity of whistleblowers.
  The Committee believes that extending whistleblower 
protection to employees, patterned off existing protection in 
other transportation sectors, would help to ensure that 
employees can safely raise legitimate and reasonable security 
concerns to employees or others without fear of reprisal.
Section 312. High hazard material security threat mitigation plans.
  This section would direct the DHS and DOT Secretaries to 
require rail carriers transporting a high hazard material to 
develop security threat mitigation plans, including alternative 
routing and temporary shipments suspension options, and to 
address assessed risks to high-consequence targets. These 
threat mitigation plans would be implemented when the threat 
levels of the Homeland Security Advisory System are high or 
severe and specific intelligence of probable or imminent threat 
exists toward high-consequence rail targets or infrastructure. 
Route plans would be required to be submitted within 60 days of 
enactment of this Act; mitigation plans would be required to be 
submitted within 180 days upon notification of high consequence 
targets by the Secretary. The plan and related information 
submitted to the Secretary for review and comment would be 
protected as sensitive security information (SSI). Each rail 
carrier would be required to update and resubmit its plan for 
review not less than every 2 years.
  The Committee believes that the plans required under this 
section would help to ensure that high-consequence targets near 
rail lines(major government buildings, public gatherings; 
critical assets or infrastructure, etc.) are protected during 
elevated security threat levels. The DHS Secretary would 
designate the high-consequence targets on routes over which 
high-hazard materials are transported and rail carriers would 
develop plans to mitigate risks for those targets in accordance 
with threat levels and other intelligence.
Section 313. Memorandum of agreement.
  This section would require within one year of the date of 
enactment of this Act the DHS and DOT Secretaries to enter into 
an annex to their September 28, 2004 memorandum of agreement to 
delineate certain roles, resources, and commitments of DHS and 
DOT in addressing railroad transportation security matters, 
including the processes the departments will follow to promote 
communications, efficiency, and non-duplication of efforts.
Section 314. Rail security enhancements.
  This section would amend section 28101 of title 49, U.S.C., 
to expand the law enforcement authority of rail police officers 
to rail properties other than those owned or operated by a rail 
police officers' employer. This change enhances rail police 
officers' ability to respond to emergencies and pursue law 
enforcement actions in railroad terminal areas where several 
railroads operate in close proximity. This section would 
require that the DOT Secretary, in consultation with the DHS 
Secretary, review within one year after the date of enactment 
of this Act, the DOT's current rail regulations for the purpose 
of identifying possible revisions that would improve rail 
security.
Section 315. Public awareness.
  This section would require within 90 days of enactment of 
this Act the DHS Secretary, in consultation with the DOT 
Secretary, to develop a national plan for improved public 
outreach and awareness of measures that the general public, 
railroad passengers, and railroad employees can take to 
increase railroad system security. Not later than nine months 
after the date of enactment of this Act, the DHS Secretary 
would implement this plan.
Section 316. Railroad high hazard material tracking.
  This section would require the DHS Secretary to develop a 
program that will encourage the equipping of rail cars 
transporting high hazard materials with wireless terrestrial or 
satellite communications technology that provides information 
concerning car position, depressurization, and the release of 
hazardous materials. The Secretary of DHS would be required to 
consult with the Secretary of DOT to coordinate the program 
with any similar efforts for rail car tracking within DOT and 
with DHS hazardous material tank rail car tracking pilot 
programs. This section would authorize to be appropriated 
$3,000,000 in funding for each of fiscal years 2007 through 
2009 for the Secretary to carry out this section.
  The Committee understands that there are on-going rail car 
tracking pilot programs now underway and that some rail car 
owners are already deploying tracking and monitoring equipment 
for tank cars carrying hazardous materials. The Committee seeks 
to encourage further deployment and development of this 
technology for both security and safety reasons.

 TITLE IV--IMPROVED MOTOR CARRIER, BUS, AND HAZARDOUS MATERIAL SECURITY

Section 401. Written plans for hazardous materials highway routing.
  This section would require, within 180 days of enactment of 
this Act, the DOT Secretary to mandate that each motor carrier 
that is required to have a hazardous material safety permit 
under part 385 of title 49, CFR, maintain a written route plan 
that meets the components of section 397.101 of that title when 
transporting the type and quantity of hazardous materials 
described in section 385.403 of that title.
Section 402. Motor carrier high-hazard material tracking.
  This section would require the DHS Secretary, through TSA, 
and in consultation with the DOT Secretary, to develop a 
program to encourage the equipping of motor carriers 
transporting high-hazard materials in specified quantities with 
wireless communications technology that provides continuous 
communications, vehicle position and location and tracking 
capabilities, and an emergency broadcast capability. This 
section would make available $3,000,000 of the funds 
appropriated under section 114(u)(2) of title 49, U.S.C., to 
carry out this Act for each of fiscal years 2007 through 2009.
  The Committee's review of the Federal Motor Carrier Safety 
Administration's Field Operation Test of hazardous material 
truck tracking technology and current wide deployment of 
tracking and monitoring equipment for trucks carrying hazardous 
materials leads the Committee to seek to encourage further 
deployment and development of this technology for both security 
and safety reasons.
Section 403. Truck leasing security training guidelines.
  This section would require within 180 days of enactment of 
this Act the DHS Secretary, through TSA, and in consultation 
with the Federal Motor Carrier Safety Administration, to 
develop and make available security training guidelines for 
short-term truck leasing operations consistent with existing 
industry best practices as determined by the DHS Secretary. 
This section would make available $1,000,000 of the funds 
appropriated under section 114(u)(2) of title 49, U.S.C., to 
carry out this Act for fiscal year 2007.
  The Committee encourages the DHS Secretary to conduct 
outreach sessions and communicate proposed guidelines to 
industry.
Section 404. Hazardous materials security inspections and enforcement.
  This section would require the DHS Secretary to establish a 
program within TSA, in consultation with the DOT Secretary, for 
reviewing hazardous materials security plans as required under 
part 172, title 49, CFR, within 180 days of the enactment of 
this Act. Failure by any covered person under part 172 to 
comply with any applicable section of that part within 180 days 
after being notified by the DHS Secretary would be punishable 
by a civil penalty. In reviewing compliance with part 172, the 
Secretary would be required to utilize risk assessment 
methodologies to prioritize review and enforcement actions to 
the most vulnerable and critical hazardous materials 
transportation operations.
  This section also would require within one year of enactment 
of this Act the DOT Secretary, in conjunction with the DHS 
Secretary, to study to what extent the insurance, security, and 
safety costs borne by carriers of hazardous materials are 
reflected in the rates paid by shippers of such commodities, as 
compared to such costs and rates borne and paid, respectively, 
for the transportation of non-hazardous materials.
  This section would make available $2,000,000 of the funds 
appropriated under section 114(u)(2) of title 49, U.S.C., to 
carry out this Act for each of fiscal years 2007 through 2009.
Section 405. Truck security assessment.
  This section would require the DOT Secretary to transmit a 
report to Congress on trucking security issues. This report 
would be required to include an assessment of security related 
measures taken by both public and private entities; an 
assessment of economic impact on the trucking industry, 
including employees and independent owner-operators, of 
upgrading trucks, equipment and facilities; an assessment of 
current research and the need for additional research on truck 
security; and an assessment of industry best practices to 
enhance security.
Section 406. Pipeline security and incident recovery plan.
  This section would require the DHS Secretary, in consultation 
with the DOT Secretary and the Pipeline and Hazardous Materials 
Safety Administration, and in accordance with the Memorandum of 
Understanding Annex executed under section 407 of this Act, to 
develop a Pipeline Security and Incident Recovery Protocols 
Plan. The Plan would be required to include a plan for the 
Federal government to provide increased security support to the 
most critical natural gas and hazardous liquid transmission 
pipeline infrastructures and operations during periods of 
elevated threat levels, and when specific threat information 
relating to such pipeline infrastructure or operations exists. 
The plan would also be required to include an incident recovery 
protocol plan, developed in conjunction with industry, to 
ensure no disruption of commerce in the event of an incident. 
The plan would also include current or planned actions by 
public and private entities to address pipeline security issues 
and an evaluation of the plans' effective integration.
  This section also would require that within one year of 
enactment of this Act the DHS Secretary transmit to Congress a 
report containing the plan required in this section, along with 
an estimate of the private and public sector costs to implement 
any recommendations. This section would make available 
$1,000,000 of the funds appropriated under section 114(u)(2) of 
title 49, U.S.C., to carry out this Act for fiscal year 2007.
  The Committee understands that one of the most significant 
effects of a terrorist or other attack against pipelines assets 
would be disruption to the nation's energy supply. With this in 
mind, this section is designed to promote active planning and 
coordination between Federal entities and the pipeline 
industries to protect against pipeline disruptions and ensure 
that the recovery for any incident is swift and efficient in 
order to protect the integrity of the nation's energy supply.
Section 407. Pipeline security inspections and enforcement.
  This section would require within one year of enactment of 
this Act the DHS Secretary, in consultation with the DOT 
Secretary, to establish a program to review pipeline operators' 
adoption of recommendations in the September 5, 2002, DOT 
Research and Special Programs Administration Pipeline Security 
Information Circular. The DHS Secretary would be required to 
complete within nine months a review of pipeline security plan 
and inspection of the 100 most critical pipeline operators 
covered by the Circular, and where such facilities have not 
been inspected for security purposes by either DHS or DOT. In 
reviewing operator compliance, the DHS Secretary would be 
required to utilize risk assessment methodologies to prioritize 
vulnerabilities and focus enforcement actions.
  This section also would require within one year of enactment 
of this Act the DHS Secretary to promulgate regulations for 
securing natural gas and hazardous liquid pipelines and 
pipeline facilities and carry out necessary inspection and 
enforcement actions. This section would make available 
$2,000,000 of the funds appropriated under section 114(u)(2) of 
title 49, U.S.C., to carry out this Act for each of fiscal 
years 2007 and 2008.
  The Committee would encourage DHS to cooperate with DOT, 
specifically the Pipeline and Hazardous Materials Safety 
Administration, in the review of the pipeline plans as well as 
the inspection of critical infrastructure.
Section 408. Memorandum of agreement.
  This section would require within six months of enactment of 
this Act the DOT Secretary and the DHS Secretary to execute and 
develop an annex to the memorandum of agreement between the two 
departments signed on September 28, 2004, in addressing 
pipeline security and hazardous materials transportation 
security matters.
Section 409. National public sector response system.
  This section would require the DHS Secretary, in conjunction 
with the DOT Secretary, to develop a national public sector 
response system to receive security alerts, which can provide 
actionable information to appropriate first responder, law 
enforcement and public safety, and homeland security officials. 
The DHS Secretary would be required to consult with public and 
private stakeholders in developing this system. The system 
would be required to have certain capabilities and 
characteristics as described in this Act.
  This section would also require within 180 days of enactment 
of this Act the DHS Secretary to transmit to Congress a report 
on the estimated public and private costs to establish and 
annually operate the system.
  This section would make available $1,000,000 of the funds 
appropriated under section 114(u)(2) of title 49, U.S.C., to 
carry out this Act for each of fiscal years 2007 through 2009.
Section 410. Over-the-road bus security assistance.
  This section would require the DHS Secretary to establish 
within TSA a program for making grants to private operators of 
over-the-road buses (characterized by an elevated passenger 
deck located over a baggage compartment) or over-the-road bus 
terminals for system-wide security improvements to their 
operations. This section would require the Federal share of the 
cost for which any grant is made to be 80 percent. All grants 
made under this section would be subject to the terms and 
conditions that a grant is subject to under section 3038(f) of 
the Transportation Equity Act for the 21st Century (49 U.S.C. 
5310 note; 112 Stat. 393). No grant would be made under this 
section to a private bus operator until the operator has first 
submitted a plan for making security improvements to the DHS 
Secretary, along with any other information the DHS Secretary 
may require.
  This section would require within 180 days of enactment of 
this Act the DHS Secretary to submit to Congress a preliminary 
report containing an assessment of actions already taken by 
public and private entities, whether additional legislation is 
necessary, the economic impact of security upgrades on the bus 
industry, ongoing research on bus security, and best practices 
to enhance bus security.
  This section would make available $50,000,000 of the funds 
appropriated under section 114(u)(2) of title 49, U.S.C., to 
carry out this Act for each of fiscal years 2007 through 2009.

                  TITLE V--IMPROVED MARITIME SECURITY

Section 501. Establishment of additional interagency operational 
        centers for port security.
  This section would direct the Commandant of the Coast Guard 
to develop additional Joint Operations Command Centers with the 
appropriate Federal, State and local jurisdictions stationed at 
each port area to co-locate assets and resources to improve 
interagency cooperation and the sharing of intelligence 
information in the maritime domain. There are currently four 
pilot centers in Miami, Florida; Norfolk, Virginia; Charleston, 
South Carolina; and San Diego, California. Specifically, the 
subsections would do the following:
  Subsection (a) of this section would require the Secretary of 
Homeland Security, through the Commandant of the Coast Guard, 
to establish interagency operational centers for port security 
at all high priority ports.
  Subsection (b) of this section would set forth 
characteristics to be met by the interagency operational 
centers including: being based on the most appropriate 
compositional and operational characteristics of existing pilot 
centers; being adapted to meet the security needs, 
requirements, and resources of the individual port area at 
which the center operates; include participants from CPB, TSA, 
the Department of Defense, State and local law enforcement of 
port security agencies and personnel, and other appropriate 
Federal agencies; and being incorporated into plans developed 
pursuant to provisions of MTSA.
  Subsection (c) of this section would maintain the requirement 
that the Commandant issue a report pursuant to the Coast Guard 
and Maritime Transportation Act of 2005 and utilize the 
information derived from it to carry out this section.
  Subsection (d) of this section would require the DHS 
Secretary to transmit a proposed budget analysis for 
establishing the interagency operational centers, including 
cost-sharing arrangements with other Federal departments and 
agencies involved in the operation of the centers.
  It is the Committee's intent that creation of additional 
interagency operational centers will foster greater cooperation 
and communication among Federal, State and local stakeholders 
and thereby enhance security of port operations.
Section 502. Area maritime transportation security plan to include 
        salvage response plan.
  Pursuant to MTSA (P.L. 107-295),all port areas were required 
to conduct an Area Maritime Transportation Security Plan 
(AMTSP) to deter a transportation security incident in or near 
the area to the maximum extent possible. The plan is required 
to integrate facility and vessel vulnerability assessments to 
develop a unity of command in preparing, prevent, and 
responding to a transportation security incident. Additionally, 
the plans must identify critical assets in the region of 
special importance to national security and implement standards 
and procedures to protect such facilities. The plans are 
required to be updated every five years.
  Upon the next renewal of the AMTSP, the Coast Guard is 
required to identify salvage vessels and equipment in the 
region to ensure the flow of cargo through U.S. ports in re-
established as efficiently and quickly as possible should a 
transportation security incident occur.
  This section would amend section 70103(b)(2) of title 46, 
U.S.C., to include the requirement that the Federal Maritime 
Security Coordinator incorporate a salvage response plan in its 
existing AMTSPs.
Section 503. Priority to certain vessels in post-incident resumption of 
        trade.
  To facilitate the flow of maritime commerce as expeditiously 
as possible without compromising national security, this 
provision would direct the Coast Guard to allow vessels with 
Coast Guard approved vessel security plans, manned by Merchant 
Mariners who have undergone background checks or have a 
Transportation Worker Identification Credential (TWIC), and 
whose cargo has been screened through the Automated Targeting 
System (ATS), to enter into U.S. ports.
  This section would amend section 70103(a)(2)(J) of title 46, 
U.S.C., to extend preference to certain vessels after a 
transportation security incident. Specifically, the plan would, 
to the extent practicable, grant preference to vessels that 
have a security plan approved under 70103(c); vessels manned by 
individuals with a license, certificate of registry, or 
merchant mariners document and who have undergone a background 
records check or who hold a transportation worker 
identification card; and vessels on which all the cargo has 
undergone screening and inspection at foreign ports as required 
by section 70116(b)(2) of title 49, U.S.C.
Section 504. Assistance for foreign ports.
  Subsection (a) would strike the current title of section 
70109, rename it ``International cooperation and 
coordination,'' and would add a new subsection (c) requiring 
the DHS Secretary, in consultation with the Secretaries of 
Transportation, State, and Energy, and the Commandant of the 
Coast Guard, to identify foreign assistance programs that could 
facilitate implementation of port security antiterrorism 
measures at ports in foreign countries. The new subsection 
would also require such programs focus on assistance to the 
Caribbean Basin.
  Subsection (b) would require the Comptroller General to 
submit a report on the security of ports in the Caribbean Basin 
specifically assessing the effectiveness of the measures 
currently in place to improve security at those ports and make 
recommendations for any additional measures to improve such 
security. In addition, the Comptroller General would be 
required to estimate the number of ports in the Basin that will 
not be secured by January 1, 2007; estimate the financial 
impact in the United States of any action taken when foreign 
ports do not maintain effective antiterrorism measures as 
called for by section 70110 of title 49, U.S.C.; and assess 
what additional resources and program changes are necessary to 
maximize security at ports in the Basin.
  In an effort to improve international port security 
standards, the Committee placed emphasis in this section on the 
Caribbean Basin countries because they pose unique security and 
safety threats due to their strategic location between South 
America and the United States, the relative openness of their 
ports, and the significant numbers of transshipments of 
narcotics to the United States from that region. It is also the 
intent of the Committee to encourage ongoing efforts by DHS 
regarding programs such as the Container Security Initiative 
(CSI).
Section 505. Improved data used for targeted cargo searches.
  Under 46 U.S.C. 70116 and (b)(1) and section 108 of MTSA, 
P.L. 107-295, the Committee-led effort mandated the advanced 
notification of cargo entering the United States to the Customs 
Service prior to being loaded on a vessel bound for the United 
States for the screening and the evaluation of threats to our 
national security. Much of this information is based on 
manifest data being input electronically by the shipper to CBP 
for screening by ATS. Since the screening cargo shipment 
information means that in essence we are relying in the 
veracity of the entity shipping cargo, the manifest information 
is only as reliable as the entity inputting the information. 
While it may help identify anomalies based on historical 
shipping behavior and irregularities that could point to 
potential security breaches, someone with a degree of knowledge 
of shipping could avoid detection. CBP inspectors at ports 
visited by GAO ``characterized the ship's manifest as one of 
the least reliable or useful types of information for targeting 
purposes.'' (11, GAO-04-325T) Additionally, various types of 
shipments lend themselves to a cloaking of the real parties of 
interest, either by virtue of the change of title after goods 
have arrived in the United States, or by virtue of using a 
cargo consolidator.
  Therefore, this section would require importers also to file 
more complete entry data to CBP allowing CBP to compare the two 
data sets for consistency and potential discrepancy thereby 
improving the targeting of high-risk cargo by the ATS system. 
Entry data is widely recognized and the best and most 
comprehensive cargo information available.
  This section would require the DHS Secretary to require 
importers shipping goods to the United States via cargo 
container to supply entry data not later than 24 hours in 
advance of loading a container under the advance notification 
requirements of section 484(a)(2) of the Tariff Act of 1930 (19 
U.S.C. 1484(a)(2)). This section would apply to goods shipped 
after July 1, 2006.
  This section would authorize to be appropriated $30,700,000 
in funding to carry out this section for fiscal year 2007, 
$33,200,000 for fiscal year 2008, and $35,700,000 for fiscal 
year 2009. Such amounts would be in addition to any other 
amounts authorized to carry out that program.
  The term ``entry data'' may also be read as ``Advanced Trade 
Data.''
Section 506. Technical requirements for non-intrusive inspection 
        equipment.
  In a recent report (GAO-05-187SU), GAO found that DHS lacked 
minimum technical requirements for the non-intrusive inspection 
equipment used as part of CSI. Thereby, CBP has limited 
assurances that the equipment in use can successfully detect 
weapons of mass destruction. Concerns have been raised that the 
technology being used to screen high-risk cargo entering the 
United States is not sufficiently robust to carry out this 
critical mission. Therefore, this section requires CBP, in 
consultation with the National Institute of Science and 
Technology, to develop minimal technical requirements for the 
performance of non-intrusive inspection equipment.
  This section would require within two years of enactment of 
this Act the CBP Commissioner, in consultation with the 
National Institute of Science and Technology, to initiate a 
rulemaking to establish minimum technical requirements for the 
capabilities of non-intrusive inspection equipment that help 
ensure that all equipment used can detect risks and threats as 
determined appropriate by the DHS Secretary.
  The term ``non-intrusive inspection equipment'' may also be 
defined as a container security device (CSD), global 
positioning system (GPS), or other technological advancement 
that would be considered in this category. Such equipment would 
be used by ``trusted shippers'' who meet the applicable 
security criteria as defined by the DHS Secretary.
Section 507. Random inspection of containers.
  This section would require within one year of the enactment 
of this Act the CBP Commissioner to develop and implement a 
plan, utilizing best practices for empirical scientific 
research design and random sampling standards, for random 
physical inspection of shipping containers in addition to any 
targeted or pre-shipment inspection of such containers as 
required by law.
Section 508. Cargo security.
  This section would amend chapter 701 of title 46, U.S.C., by 
inserting a new section 70121. The new section 70121 would 
require the DHS Secretary to promulgate standards and 
procedures for evaluating and screening cargo documents prior 
to loading cargo in a foreign port for shipment to the United 
States, and the inspection of high-risk cargo in a foreign port 
intended for shipment to the United States. This section also 
would require the CBP Commissioner to execute inspection and 
screening protocols with authorities in foreign ports to ensure 
that the standards and procedures required by this section are 
implemented in an effective manner.
  This section would authorize the DHS Secretary to extend this 
container security initiative by designating additional foreign 
seaports under certain circumstances, including after making a 
determination that the Secretary of State has completed 
negotiations with representatives of the foreign country to 
ensure compliance with the initiative.
  This section would authorize to be appropriated $142,000,000 
in funding to carry out this section for fiscal year 2007, 
$144,000,000 for fiscal year 2008, and $146,000,000 for fiscal 
year 2009.
Section 509. Secure systems of international inter-modal 
        transportation.
  This section would amend section 70116 of title 46, U.S.C., 
by bolstering existing law to ensure more robust protection of 
goods entering the United States. The DHS Secretary would be 
required to establish a program to evaluate and certify secure 
systems of international inter-modal transportation to ensure 
the security and integrity of shipments of goods entering the 
United States from the time such goods are initially packed 
into a cargo container for international shipment until they 
arrive at the ultimate U.S. destination. The Secretary would be 
required to facilitate the movement of such goods through the 
entire supply chain through an expedited security and clearance 
process.
  This section also would require the DHS Secretary to 
establish standards and procedures to verify that cargo 
containers are: free of unauthorized hazardous chemical, 
biological, or nuclear materials and securely sealed; screened 
and evaluated prior to loading at the foreign ports and 
monitored while in transit; contained with authorized seals and 
locks; and in compliance as validated by the United States 
Government. Lastly, the Commissioner of Custom and Border 
Protection would be granted authority to provide expedited 
clearance of cargo as a benefit of compliance.
Section 510. Port security user fee study.
  This section would require the DHS Secretary to conduct a 
study of the feasibility of establishing a system of oceanborne 
and port-related inter-modal transportation user fees imposed 
and collected as a revenue source to provide necessary funding 
for the maintenance and enhancement of port security. The DHS 
Secretary would be required within one year of the enactment of 
this Act to submit a report to Congress containing the 
Secretary's findings and recommendations, including legislative 
proposals if necessary. The report to Congress also should 
include an assessment of the annual amount of custom fees and 
duties collected and percentage dedicated to security.
Section 511. Deadline for transportation security cards.
  This section would require that the DHS Secretary issue a 
final rule under 70105 of title 46, U.S.C., no later than 
January 1, 2007.
Section 512. Port security grants.
  This section would amend section 70107(a) of title 46, 
U.S.C., by ensuring that port security grants are allocated 
based on an analysis by the DHS Secretary of risk and 
vulnerability, and the purposes for which grants may be used. 
This section also would amend section 70107(e) by authorizing 
the DHS Secretary to execute a letter of intent to commit 
funding to port sponsors from the grant fund.
Section 513. Customs-Trade Partnership Against Terrorism (C-TPAT) 
        Security Validation Program.
  This section would further amend chapter 701 of title 46, 
U.S.C., as amended by section 508 of this Act, by creating a 
new section 70122. This new section would require the CBP 
Commissioner to: strengthen the process to validate the 
security programs of C-TPAT members; within six months after 
the enactment of this Act complete human capital plans 
describing how the program will recruit, train, and retain 
sufficient staff to carry out the program successfully; and 
implement a records management system that documents key 
decisions and significant operational events accurately and in 
a timely manner.
  This section would authorize to be appropriated $60,000,000 
in funding to carry out this Act for fiscal year 2007, 
$65,000,000 for fiscal year 2008, and $72,000,000 for fiscal 
year 2009.
Section 514. Work stoppages and employee-employer disputes.
  This section would amend section 70101(6) of title 46, 
U.S.C., by making clear that the definition of ``economic 
disruption'' does not include a work stoppage or other non-
violent employee-related action resulting from an employee-
employer dispute.
Section 515. Appeal of denial of waiver for transportation security 
        card.
  This section would amend section 70105(c)(3) of title 46, 
U.S.C., to afford those individuals denied a waiver by the DHS 
Secretary to receive a transportation security card the ability 
to appeal the decision.
Section 516. Inspection of car ferries entering from Canada.
  This section would require the DHS Secretary, within 120 days 
of enactment of this act, to develop a plan for the inspection 
of passengers and vehicles prior to any boarding of a ferry 
bound for a U.S. port. The DHS Secretary would coordinate this 
planning with the Secretary of State and with relevant Canadian 
counterparts.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                     HOMELAND SECURITY ACT OF 2002

   TITLE III--SCIENCE AND TECHNOLOGY IN SUPPORT OF HOMELAND SECURITY

SEC. 314. COMPETITIVE RESEARCH PROGRAM.

  (a) In General.--
          (1) Establishment.--The Secretary, acting through the 
        Under Secretary for Science and Technology, shall 
        establish a competitive research program within the 
        Directorate.
          (2) Director.--The program shall be headed by a 
        Director, who shall be appointed by the Secretary. The 
        Director shall report to the Under Secretary.
          (3) Duties of Director.--In the administration of the 
        program, the Director shall--
                  (A) establish a cofunding mechanism for 
                States with academic facilities that have not 
                fully developed security-related science and 
                technology to support burgeoning research 
                efforts by the faculty or link them to 
                established investigators;
                  (B) provide for conferences, workshops, 
                outreach, and technical assistance to 
                researchers and institutions of higher 
                education in States on topics related to 
                developing science and technology expertise in 
                areas of high interest and relevance to the 
                Department;
                  (C) monitor the efforts of States to develop 
                programs that support the Department's mission;
                  (D) implement a merit review program, 
                consistent with program objectives, to ensure 
                the quality of research conducted with Program 
                funding; and
                  (E) provide annual reports on the progress 
                and achievements of the Program to the 
                Secretary.
  (b) Assistance Under the Program.--
          (1) Scope.--The Director shall provide assistance 
        under the program for research and development projects 
        that are related to, or qualify as, homeland security 
        research (as defined in section 307(a)(2)) under the 
        program.
          (2) Form of assistance.--Assistance under the program 
        can take the form of grants, contracts, or cooperative 
        arrangements.
          (3) Applications.--Applicants shall submit proposals 
        or applications in such form, at such times, and 
        containing such information as the Director may 
        require.
  (c) Implementation.--
          (1) Start-up phases.--For the first 3 fiscal years 
        beginning after the date of enactment of the Border 
        Infrastructure and Technology Integration Act of 2004, 
        assistance under the program shall be limited to 
        institutions of higher education located in States in 
        which an institution of higher education with a grant 
        from, or a contract or cooperative agreement with, the 
        National Science Foundation under section 113 of the 
        National Science Foundation Act of 1988 (42 U.S.C. 
        1862) is located.
          (2) Subsequent fiscal years.--
                  (A) In general.--Beginning with the 4th 
                fiscal year after the date of enactment of this 
                Act, the Director shall rank order the States 
                (excluding any noncontiguous State (as defined 
                in section 2(14)) other than Alaska, Hawaii, 
                the Commonwealth of Puerto Rico, and the Virgin 
                Islands) in descending order in terms of the 
                average amount of funds received by 
                institutions of higher education (as that term 
                is defined in section 101(a) of the Higher 
                Education Act of 1965 (20 U.S.C. 1001(a)) in 
                each State that received financial assistance 
                in the form of grants, contracts, or 
                cooperative arrangements under this title 
                during each of the preceding 3 fiscal years.
                  (B) Allocation.--Beginning with the 4th 
                fiscal year after the date of enactment of this 
                Act, assistance under the program for any 
                fiscal year is limited to institutions of 
                higher education located in States in the 
                lowest third of those ranked under subparagraph 
                (A) for that fiscal year.
                  (C) Determination of location.--For purposes 
                of this paragraph, an institution of higher 
                education shall be considered to be located in 
                the State in which its home campus is located, 
                except that assistance provided under the 
                program to a division, institute, or other 
                facility located in another State for use in 
                that State shall be considered to have been 
                provided to an institution of higher education 
                located in that other State.
                  (D) Multiyear assistance.--For purposes of 
                this paragraph, assistance under the program 
                that is provided on a multi-year basis shall be 
                counted as provided in each such year in the 
                amount so provided for that year.
  (d) Funding.--The Secretary shall ensure that no less than 5 
percent of the amount appropriated for each fiscal year to the 
Acceleration Fund for Research and Development of Homeland 
Security Technologies established by section 307(c)(1) is 
allocated to the program established by subsection (a).

                      TITLE 46, UNITED STATES CODE

                       CHAPTER 701. PORT SECURITY

Sec. 70101. Definitions

  For the purpose of this chapter:
          (1) The term ``Area Maritime Transportation Security 
        Plan'' means an Area Maritime Transportation Security 
        Plan prepared under section 70103(b).
          (2) The term ``facility'' means any structure or 
        facility of any kind located in, on, under, or adjacent 
        to any waters subject to the jurisdiction of the United 
        States.
          (3) The term ``National Maritime Transportation 
        Security Plan'' means the National Maritime 
        Transportation Security Plan prepared and published 
        under section 70103(a).
          (4) The term ``owner or operator'' means--
                  (A) in the case of a vessel, any person 
                owning, operating, or chartering by demise, 
                such vessel; and
                  (B) in the case of a facility, any person 
                owning, leasing, or operating such facility.
          (5) The term ``Secretary'' means the Secretary of the 
        department in which the Coast Guard is operating.
          (6) The term ``transportation security incident'' 
        means a security incident resulting in a significant 
        loss of life, environmental damage, transportation 
        system disruption, or economic disruption in a 
        particular area. In this paragraph, the term `economic 
        disruption' does not include a work stoppage or other 
        nonviolent employee-related action resulting from an 
        employee-employer dispute.

Sec. 70103. Maritime transportation security plans

  (a) National Maritime Transportation Security Plan.--
          (1) Not later than April 1, 2005, the Secretary shall 
        prepare a National Maritime Transportation Security 
        Plan for deterring and responding to a transportation 
        security incident.
          (2) The National Maritime Transportation Security 
        Plan shall provide for efficient, coordinated, and 
        effective action to deter and minimize damage from a 
        transportation security incident, and shall include the 
        following:
                  (A) Assignment of duties and responsibilities 
                among Federal departments and agencies and 
                coordination with State and local governmental 
                agencies.
                  (B) Identification of security resources.
                  (C) Procedures and techniques to be employed 
                in deterring a national transportation security 
                incident.
                  (D) Establishment of procedures for the 
                coordination of activities of--
                          (i) Coast Guard maritime security 
                        teams established under this chapter; 
                        and
                          (ii) Federal Maritime Security 
                        Coordinators required under this 
                        chapter.
                  (E) A system of surveillance and notice 
                designed to safeguard against as well as ensure 
                earliest possible notice of a transportation 
                security incident and imminent threats of such 
                a security incident to the appropriate State 
                and Federal agencies.
                  (F) Establishment of criteria and procedures 
                to ensure immediate and effective Federal 
                identification of a transportation security 
                incident, or the substantial threat of such a 
                security incident.
                  (G) Designation of--
                          (i) areas for which Area Maritime 
                        Transportation Security Plans are 
                        required to be prepared under 
                        subsection (b); and
                          (ii) a Coast Guard official who shall 
                        be the Federal Maritime Security 
                        Coordinator for each such area.
                  (H) A risk-based system for evaluating the 
                potential for violations of security zones 
                designated by the Secretary on the waters 
                subject to the jurisdiction of the United 
                States.
                  (I) A recognition of certified systems of 
                intermodal transportation.
                  (J) A plan for ensuring that the flow of 
                cargo through United States ports is 
                reestablished as efficiently and quickly as 
                possible after a transportation security 
                incident. The plan shall provide, to the extent 
                practicable, preference in the reestablishment 
                of the flow of cargo through United States 
                ports after a transportation security incident 
                to--
                  (i) vessels that have a vessel security plan 
                approved under subsection (c);
                  (ii) vessels manned by individuals who are 
                described in section 70105(b)(2)(B) and who 
                have undergone a background records check under 
                section 70105(d) or who hold transportation 
                security cards issued under section 70105; and
                  (iii) vessels on which all the cargo has 
                undergone screening and inspection under 
                standards and procedures established under 
                section 70116(b)(2) of this title.
          (3) The Secretary shall, as the Secretary considers 
        advisable, revise or otherwise amend the National 
        Maritime Transportation Security Plan.
          (4) Actions by Federal agencies to deter and minimize 
        damage from a transportation security incident shall, 
        to the greatest extent possible, be in accordance with 
        the National Maritime Transportation Security Plan.
          (5) The Secretary shall inform vessel and facility 
        owners or operators of the provisions in the National 
        Transportation Security Plan that the Secretary 
        considers necessary for security purposes.
  (b) Area Maritime Transportation Security Plans.--
          (1) The Federal Maritime Security Coordinator 
        designated under subsection (a)(2)(G) for an area 
        shall--
                  (A) submit to the Secretary an Area Maritime 
                Transportation Security Plan for the area; and
                  (B) solicit advice from the Area Security 
                Advisory Committee required under this chapter, 
                for the area to assure preplanning of joint 
                deterrence efforts, including appropriate 
                procedures for deterrence of a transportation 
                security incident.
          (2) The Area Maritime Transportation Security Plan 
        for an area shall--
                  (A) when implemented in conjunction with the 
                National Maritime Transportation Security Plan, 
                be adequate to deter a transportation security 
                incident in or near the area to the maximum 
                extent practicable;
                  (B) describe the area and infrastructure 
                covered by the plan, including the areas of 
                population or special economic, environmental, 
                or national security importance that might be 
                damaged by a transportation security incident;
                  (C) describe in detail how the plan is 
                integrated with other Area Maritime 
                Transportation Security Plans, and with 
                facility security plans and vessel security 
                plans under this section;
                  (D) include consultation and coordination 
                with the Department of Defense on matters 
                relating to Department of Defense facilities 
                and vessels;
                  (E) include any other information the 
                Secretary requires; [and]
                  (F) include a salvage response plan--
                          (i) to identify salvage equipment 
                        capable of restoring operational trade 
                        capacity; and
                          (ii) to ensure that the flow of cargo 
                        through United States ports is re-
                        established as efficiently and quickly 
                        as possible after a transportation 
                        security incident; and
                  [(F)] (G) be updated at least every 5 years 
                by the Federal Maritime Security Coordinator.
          (3) The Secretary shall--
                  (A) review and approve Area Maritime 
                Transportation Security Plans under this 
                subsection; and
                  (B) periodically review previously approved 
                Area Maritime Transportation Security Plans.
          (4) In security zones designated by the Secretary in 
        each Area Maritime Transportation Security Plan, the 
        Secretary shall consider--
                  (A) the use of public/private partnerships to 
                enforce security within the security zones, 
                shoreside protection alternatives, and the 
                environmental, public safety, and relative 
                effectiveness of such alternatives; and
                  (B) technological means of enhancing the 
                security zones of port, territorial waters, and 
                waterways of the United States.
  (c) Vessel and facility security plans.--
          (1) Within 6 months after the prescription of interim 
        final regulations on vessel and facility security 
        plans, an owner or operator of a vessel or facility 
        described in paragraph (2) shall prepare and submit to 
        the Secretary a security plan for the vessel or 
        facility, for deterring a transportation security 
        incident to the maximum extent practicable.
          (2) The vessels and facilities referred to in 
        paragraph (1)--
                  (A) except as provided in subparagraph (B), 
                are vessels and facilities that the Secretary 
                believes may be involved in a transportation 
                security incident; and
                  (B) do not include any vessel or facility 
                owned or operated by the Department of Defense.
          (3) A security plan required under this subsection 
        shall--
                  (A) be consistent with the requirements of 
                the National Maritime Transportation Security 
                Plan and Area Maritime Transportation Security 
                Plans;
                  (B) identify the qualified individual having 
                full authority to implement security actions, 
                and require immediate communications between 
                that individual and the appropriate Federal 
                official and the persons providing personnel 
                and equipment pursuant to subparagraph (C);
                  (C) include provisions for--
                          (i) establishing and maintaining 
                        physical security, passenger and cargo 
                        security, and personnel security;
                          (ii) establishing and controlling 
                        access to secure areas of the vessel or 
                        facility;
                          (iii) procedural security policies;
                          (iv) communications systems; and
                          (v) other security systems;
                  (D) identify, and ensure by contract or other 
                means approved by the Secretary, the 
                availability of security measures necessary to 
                deter to the maximum extent practicable a 
                transportation security incident or a 
                substantial threat of such a security incident;
                  (E) describe the training, periodic 
                unannounced drills, and security actions of 
                persons on the vessel or at the facility, to be 
                carried out under the plan to deter to the 
                maximum extent practicable a transportation 
                security incident, or a substantial threat of 
                such a security incident;
                  (F) be updated at least every 5 years; and
                  (G) be resubmitted for approval of each 
                change to the vessel or facility that may 
                substantially affect the security of the vessel 
                or facility.
          (4) The Secretary shall--
                  (A) promptly review each such plan;
                  (B) require amendments to any plan that does 
                not meet the requirements of this subsection;
                  (C) approve any plan that meets the 
                requirements of this subsection; and
                  (D) review each plan periodically thereafter.
          (5) A vessel or facility for which a plan is required 
        to be submitted under this subsection may not operate 
        after the end of the 12-month period beginning on the 
        date of the prescription of interim final regulations 
        on vessel and facility security plans, unless--
                  (A) the plan has been approved by the 
                Secretary; and
                  (B) the vessel or facility is operating in 
                compliance with the plan.
          (6) Notwithstanding paragraph (5), the Secretary may 
        authorize a vessel or facility to operate without a 
        security plan approved under this subsection, until not 
        later than 1 year after the date of the submission to 
        the Secretary of a plan for the vessel or facility, if 
        the owner or operator of the vessel or facility 
        certifies that the owner or operator has ensured by 
        contract or other means approved by the Secretary to 
        deter to the maximum extent practicable a 
        transportation security incident or a substantial 
        threat of such a security incident.
          (7) The Secretary shall require each owner or 
        operator of a vessel or facility located within or 
        adjacent to waters subject to the jurisdiction of the 
        United States to implement any necessary interim 
        security measures, including cargo security programs, 
        to deter to the maximum extent practicable a 
        transportation security incident until the security 
        plan for that vessel or facility operator is approved.
  (d) Nondisclosure of information.--Notwithstanding any other 
provision of law, information developed under this chapter is 
not required to be disclosed to the public, including--
          (1) facility security plans, vessel security plans, 
        and port vulnerability assessments; and
          (2) other information related to security plans, 
        procedures, or programs for vessels or facilities 
        authorized under this chapter.

Sec. 70105. Transportation security cards

  (a) Prohibition.--
          (1) The Secretary shall prescribe regulations to 
        prevent an individual from entering an area of a vessel 
        or facility that is designated as a secure area by the 
        Secretary for purposes of a security plan for the 
        vessel or facility that is approved by the Secretary 
        under section 70103 of this title unless the 
        individual--
                  (A) holds a transportation security card 
                issued under this section and is authorized to 
                be in the area in accordance with the plan; or
                  (B) is accompanied by another individual who 
                holds a transportation security card issued 
                under this section and is authorized to be in 
                the area in accordance with the plan.
          (2) A person shall not admit an individual into such 
        a secure area unless the entry of the individual into 
        the area is in compliance with paragraph (1).
  (b) Issuance of cards.--
          (1) The Secretary shall issue a biometric 
        transportation security card to an individual specified 
        in paragraph (2), unless the Secretary decides that the 
        individual poses a security risk under subsection (c) 
        warranting denial of the card.
          (2) This subsection applies to--
                  (A) an individual allowed unescorted access 
                to a secure area designated in a vessel or 
                facility security plan approved under section 
                70103 of this title;
                  (B) an individual issued a license, 
                certificate of registry, or merchant mariners 
                document under part E of subtitle II of this 
                title;
                  (C) a vessel pilot;
                  (D) an individual engaged on a towing vessel 
                that pushes, pulls, or hauls alongside a tank 
                vessel;
                  (E) an individual with access to security 
                sensitive information as determined by the 
                Secretary; and
                  (F) other individuals engaged in port 
                security activities as determined by the 
                Secretary.
  (c) Determination of terrorism security risk.--
          (1) An individual may not be denied a transportation 
        security card under subsection (b) unless the Secretary 
        determines that individual--
                  (A) has been convicted within the preceding 
                7-year period of a felony or found not guilty 
                by reason of insanity of a felony--
                          (i) that the Secretary believes could 
                        cause the individual to be a terrorism 
                        security risk to the United States; or
                          (ii) for causing a severe 
                        transportation security incident;
                  (B) has been released from incarceration 
                within the preceding 5-year period for 
                committing a felony described in subparagraph 
                (A);
                  (C) may be denied admission to the United 
                States or removed from the United States under 
                the Immigration and Nationality Act (8 U.S.C. 
                1101 et seq.); or
                  (D) otherwise poses a terrorism security risk 
                to the United States.
          (2) The Secretary shall prescribe regulations that 
        establish a waiver process for issuing a transportation 
        security card to an individual found to be otherwise 
        ineligible for such a card under paragraph (1). In 
        deciding to issue a card to such an individual, the 
        Secretary shall--
                  (A) give consideration to the circumstances 
                of any disqualifying act or offense, 
                restitution made by the individual, Federal and 
                State mitigation remedies, and other factors 
                from which it may be concluded that the 
                individual does not pose a terrorism risk 
                warranting denial of the card; and
                  (B) issue a waiver to an individual without 
                regard to whether that individual would 
                otherwise be disqualified if the individual's 
                employer establishes alternate security 
                arrangements acceptable to the Secretary.
          (3) The Secretary shall establish an appeals process 
        under this section for individuals found to be 
        ineligible for a transportation security card or a 
        waiver under paragraph (2) that includes notice and an 
        opportunity for a hearing.
          (4) Upon application, the Secretary may issue a 
        transportation security card to an individual if the 
        Secretary has previously determined, under section 
        5103a of title 49, that the individual does not pose a 
        security risk.
  (d) Background records check.--
          (1) On request of the Secretary, the Attorney General 
        shall--
                  (A) conduct a background records check 
                regarding the individual; and
                  (B) upon completing the background records 
                check, notify the Secretary of the completion 
                and results of the background records check.
          (2) A background records check regarding an 
        individual under this subsection shall consist of the 
        following:
                  (A) A check of the relevant criminal history 
                databases.
                  (B) In the case of an alien, a check of the 
                relevant databases to determine the status of 
                the alien under the immigration laws of the 
                United States.
                  (C) As appropriate, a check of the relevant 
                international databases or other appropriate 
                means.
                  (D) Review of any other national security-
                related information or database identified by 
                the Attorney General for purposes of such a 
                background records check.
  (e) Restrictions on use and maintenance of information.--
          (1) Information obtained by the Attorney General or 
        the Secretary under this section may not be made 
        available to the public, including the individual's 
        employer.
          (2) Any information constituting grounds for denial 
        of a transportation security card under this section 
        shall be maintained confidentially by the Secretary and 
        may be used only for making determinations under this 
        section. The Secretary may share any such information 
        with other Federal law enforcement agencies. An 
        individual's employer may only be informed of whether 
        or not the individual has been issued the card under 
        this section.
  (f) Definition.--In this section, the term ``alien'' has the 
meaning given the term in section 101(a)(3) of the Immigration 
and Nationality Act (8 U.S.C. 1101(a)(3)).

Sec. 70107. Grants

  (a) In general.--The Secretary shall establish a grant 
program [for making a fair and equitable allocation of funds] 
based on risk and vulnerability to implement Area Maritime 
Transportation Security Plans and facility security plans among 
port authorities, facility operators, and State and local 
government agencies required to provide port security services. 
Before awarding a grant under the program, the Secretary shall 
provide for review and comment by the appropriate Federal 
Maritime Security Coordinators and the Maritime Administrator. 
In administering the grant program, the Secretary shall take 
into account national economic and strategic defense concerns.
  (b) Eligible costs.--The following costs of funding the 
correction of Coast Guard identified vulnerabilities in port 
security and ensuring compliance with Area Maritime 
Transportation Security Plans and facility security plans are 
eligible to be funded:
          [(1) Salary, benefits, overtime compensation, 
        retirement contributions, and other costs of additional 
        Coast Guard mandated security personnel.]
          [(2)] (1) The cost of acquisition, operation, and 
        maintenance of security equipment or facilities to be 
        used for security monitoring and recording, security 
        gates and fencing, marine barriers for designated 
        security zones, security-related lighting systems, 
        remote surveillance, concealed video systems, security 
        vessels, and other security-related infrastructure or 
        equipment that contributes to the overall security of 
        passengers, cargo, or crewmembers.
          [(3)] (2) The cost of screening equipment, including 
        equipment that detects weapons of mass destruction and 
        conventional explosives, and of testing and evaluating 
        such equipment, to certify secure systems of 
        transportation.
          [(4)] (3) The cost of conducting vulnerability 
        assessments to evaluate and make recommendations with 
        respect to security.
  (c) Matching requirements.--
          (1) 75-percent federal funding.--Except as provided 
        in paragraph (2), Federal funds for any eligible 
        project under this section shall not exceed 75 percent 
        of the total cost of such project.
          (2) Exceptions.--
                  (A) Small projects.--There are no matching 
                requirements for grants under subsection (a) 
                for projects costing not more than $25,000.
                  (B) Higher level of support required.--If the 
                Secretary determines that a proposed project 
                merits support and cannot be undertaken without 
                a higher rate of Federal support, then the 
                Secretary may approve grants under this section 
                with a matching requirement other than that 
                specified in paragraph (1).
  (d) Coordination and cooperation agreements.--The Secretary 
shall ensure that projects paid for, or the costs of which are 
reimbursed, under this section within any area or port are 
coordinated with other projects, and may require cooperative 
agreements among users of the port and port facilities with 
respect to projects funded under this section.
  (e) Administration.--
          (1) In general.--The program shall require eligible 
        port authorities, facility operators, and State and 
        local agencies required to provide security services, 
        to submit an application, at such time, in such form, 
        and containing such information and assurances as the 
        Secretary may require, and shall include appropriate 
        application, review, and delivery mechanisms.
          (2) Minimum standards for payment or reimbursement.--
        Each application for payment or reimbursement of 
        eligible costs shall include, at a minimum, the 
        following:
                  (A) A copy of the applicable Area Maritime 
                Transportation Security Plan or facility 
                security plan.
                  (B) A comprehensive description of the need 
                for the project, and a statement of the 
                project's relationship to the applicable Area 
                Maritime Transportation Security Plan or 
                facility security plan.
                  (C) A determination by the Captain of the 
                Port that the security project addresses or 
                corrects Coast Guard identified vulnerabilities 
                in security and ensures compliance with Area 
                Maritime Transportation Security Plans and 
                facility security plans.
          (3) Procedural safeguards.--The Secretary shall by 
        regulation establish appropriate accounting, reporting, 
        and review procedures to ensure that amounts paid or 
        reimbursed under this section are used for the purposes 
        for which they were made available, all expenditures 
        are properly accounted for, and amounts not used for 
        such purposes and amounts not obligated or expended are 
        recovered.
          (4) Project approval required.--The Secretary may 
        approve an application for the payment or reimbursement 
        of costs under this section only if the Secretary is 
        satisfied that--
                  (A) the project is consistent with Coast 
                Guard vulnerability assessments and ensures 
                compliance with Area Maritime Transportation 
                Security Plans and facility security plans;
                  (B) enough money is available to pay the 
                project costs that will not be reimbursed by 
                the United States Government under this 
                section;
                  (C) the project will be completed without 
                unreasonable delay; and
                  (D) the recipient has authority to carry out 
                the project as proposed.
          (5) Letters of intent.--The Secretary may execute 
        letters of intent to commit funding to port sponsors 
        from the Fund.
  (f) Audits and examinations.--A recipient of amounts made 
available under this section shall keep such records as the 
Secretary may require, and make them available for review and 
audit by the Secretary, the Comptroller General of the United 
States, or the Inspector General of the department in which the 
Coast Guard is operating.
  (g) Reports on security funding and compliance.--
          (1) Initial report.--Within 6 months after the date 
        of enactment of this Act, the Secretary shall transmit 
        an unclassified report to the Senate Committee on 
        Commerce, Science, and Transportation and the House of 
        Representatives Committee on Transportation and 
        Infrastructure, that--
                  (A) includes a funding proposal and rationale 
                to fund the correction of Coast Guard 
                identified vulnerabilities in port security and 
                to help ensure compliance with Area Maritime 
                Transportation Security Plans and facility 
                security plans for fiscal years 2003 through 
                2008; and
                  (B) includes projected funding proposals for 
                fiscal years 2003 through 2008 for the 
                following security programs:
                          (i) The Sea Marshall program.
                          (ii) The Automated Identification 
                        System and a system of polling vessels 
                        on entry into United States waters.
                          (iii) The maritime intelligence 
                        requirements in this Act.
                          (iv) The issuance of transportation 
                        security cards required by section 
                        70105.
                          (v) The program of certifying secure 
                        systems of transportation.
          (2) Other expenditures.--The Secretary shall, as part 
        of the report required by paragraph (1) report, in 
        coordination with the Commissioner of Customs, on 
        projected expenditures of screening and detection 
        equipment and on cargo security programs over fiscal 
        years 2003 through 2008.
          (3) Annual reports.--Annually, beginning 1 year after 
        transmittal of the report required by paragraph (1) 
        until October 1, 2009, the Secretary shall transmit an 
        unclassified annual report to the Senate Committee on 
        Commerce, Science, and Transportation and the House of 
        Representatives Committee on Transportation and 
        Infrastructure, on progress in achieving compliance 
        with the correction of Coast Guard identified 
        vulnerabilities in port security and compliance with 
        Area Maritime Transportation Security Plans and 
        facility security plans that--
                  (A) identifies any modifications necessary in 
                funding to ensure the correction of Coast Guard 
                identified vulnerabilities and ensure 
                compliance with Area Maritime Transportation 
                Security Plans and facility security plans;
                  (B) includes an assessment of progress in 
                implementing the grant program established by 
                subsection (a);
                  (C) includes any recommendations the 
                Secretary may make to improve these programs; 
                and
                  (D) with respect to a port selected by the 
                Secretary, describes progress and enhancements 
                of applicable Area Maritime Transportation 
                Security Plans and facility security plans and 
                how the Maritime Transportation Security Act of 
                2002 has improved security at that port.
  (h) Authorization of appropriations.--There are authorized to 
be appropriated to the Secretary for each of fiscal years 2003 
through 2008 such sums as are necessary to carry out 
subsections (a) through (g).
                          (i) Investigations.--
          (1) In general.--The Secretary shall conduct 
        investigations, fund pilot programs, and award grants, 
        to examine or develop--
                  (A) methods or programs to increase the 
                ability to target for inspection vessels, 
                cargo, crewmembers, or passengers that will 
                arrive or have arrived at any port or place in 
                the United States;
                  (B) equipment to detect accurately 
                explosives, chemical, or biological agents that 
                could be used in a transportation security 
                incident against the United States;
                  (C) equipment to detect accurately nuclear or 
                radiological materials, including 
                scintillation-based detection equipment capable 
                of signalling the presence of nuclear or 
                radiological materials;
                  (D) improved tags and seals designed for use 
                on shipping containers to track the 
                transportation of the merchandise in such 
                containers, including sensors that are able to 
                track a container throughout its entire supply 
                chain, detect hazardous and radioactive 
                materials within that container, and transmit 
                that information to the appropriate law 
                enforcement authorities;
                  (E) tools, including the use of satellite 
                tracking systems, to increase the awareness of 
                maritime areas and to identify potential 
                transportation security incidents that could 
                have an impact on facilities, vessels, and 
                infrastructure on or adjacent to navigable 
                waterways, including underwater access;
                  (F) tools to mitigate the consequences of a 
                transportation security incident on, adjacent 
                to, or under navigable waters of the United 
                States, including sensor equipment, and other 
                tools to help coordinate effective response to 
                a transportation security incident;
                  (G) applications to apply existing 
                technologies from other areas or industries to 
                increase overall port security;
                  (H) improved container design, including 
                blast-resistant containers; and
                  (I) methods to improve security and 
                sustainability of port facilities in the event 
                of a maritime transportation security incident, 
                including specialized inspection facilities.
          (2) Implementation of technology.--
                  (A) In general.--In conjunction with ongoing 
                efforts to improve security at United States 
                ports, the Secretary may conduct pilot projects 
                at United States ports to test the 
                effectiveness and applicability of new port 
                security projects, including--
                          (i) testing of new detection and 
                        screening technologies;
                          (ii) projects to protect United 
                        States ports and infrastructure on or 
                        adjacent to the navigable waters of the 
                        United States, including underwater 
                        access; and
                          (iii) tools for responding to a 
                        transportation security incident at 
                        United States ports and infrastructure 
                        on or adjacent to the navigable waters 
                        of the United States, including 
                        underwater access.
                  (B) Authorization of appropriations.--There 
                is authorized to be appropriated to the 
                Secretary not less than $35,000,000 for each of 
                fiscal years 2005 through 2009 to carry out 
                this subsection.
          (3) National Port Security Centers.--
                  (A) In general.--The Secretary may make 
                grants or enter into cooperative agreements 
                with eligible nonprofit institutions of higher 
                learning to conduct investigations in 
                collaboration with ports and the maritime 
                transportation industry focused on enhancing 
                security of the Nation's ports in accordance 
                with this subsection through National Port 
                Security Centers.
                  (B) Applications.--To be eligible to receive 
                a grant under this paragraph, a nonprofit 
                institution of higher learning, or a consortium 
                of such institutions, shall submit an 
                application to the Secretary in such form and 
                containing such information as the Secretary 
                may require.
                  (C) Competitive selection process.--The 
                Secretary shall select grant recipients under 
                this paragraph through a competitive process on 
                the basis of the following criteria:
                          (i) Whether the applicant can 
                        demonstrate that personnel, laboratory, 
                        and organizational resources will be 
                        available to the applicant to carry out 
                        the investigations authorized in this 
                        paragraph.
                          (ii) The applicant's capability to 
                        provide leadership in making national 
                        and regional contributions to the 
                        solution of immediate and long-range 
                        port and maritime transportation 
                        security and risk mitigation problems.
                          (iii) Whether the applicant can 
                        demonstrate that is has an established, 
                        nationally recognized program in 
                        disciplines that contribute directly to 
                        maritime transportation safety and 
                        education.
                          (iv) Whether the applicant's 
                        investigations will involve major 
                        United States ports on the East Coast, 
                        the Gulf Coast, and the West Coast, and 
                        Federal agencies and other entities 
                        with expertise in port and maritime 
                        transportation.
                          (v) Whether the applicant has a 
                        strategic plan for carrying out the 
                        proposed investigations under the 
                        grant.
          (4) Administrative provisions.--
                  (A) No duplication of effort.--Before making 
                any grant, the Secretary shall coordinate with 
                other Federal agencies to ensure the grant will 
                not duplicate work already being conducted with 
                Federal funding.
                  (B) Accounting.--The Secretary shall by 
                regulation establish accounting, reporting, and 
                review procedures to ensure that funds made 
                available under paragraph (1) are used for the 
                purpose for which they were made available, 
                that all expenditures are properly accounted 
                for, and that amounts not used for such 
                purposes and amounts not expended are 
                recovered.
                  (C) Recordkeeping.--Recipients of grants 
                shall keep all records related to expenditures 
                and obligations of funds provided under 
                paragraph (1) and make them available upon 
                request to the Inspector General of the 
                department in which the Coast Guard is 
                operating and the Secretary for audit and 
                examination.
          (5) Annual review and report.--The Inspector General 
        of the department in which the Coast Guard is operating 
        shall annually review the programs established under 
        this subsection to ensure that the expenditures and 
        obligations of funds are consistent with the purposes 
        for which they are provided, and report the findings to 
        the Committee on Commerce, Science, and Transportation 
        of the Senate and the Committee on Transportation and 
        Infrastructure of the House of Representatives.

[Sec. 70109. Notifying foreign authorities]

Sec. 70109. International cooperation and coordination

  (a) In general.--If the Secretary, after conducting an 
assessment under section 70108, finds that a port in a foreign 
country does not maintain effective antiterrorism measures, the 
Secretary shall notify the appropriate authorities of the 
government of the foreign country of the finding and recommend 
the steps necessary to improve the antiterrorism measures in 
use at the port.
  (b) Training program.--The Secretary, in cooperation with the 
Secretary of State, shall operate a port security training 
program for ports in foreign countries that are found under 
section 70108 to lack effective antiterrorism measures.
  (c) Foreign Assistance Programs.--
          (1) In general.--The Secretary, in consultation with 
        the Secretary of Transportation, the Secretary of 
        State, the Secretary of Energy, and the Commandant of 
        the United States Coast Guard, shall identify foreign 
        assistance programs that could facilitate 
        implementation of port security antiterrorism measures 
        in foreign countries. The Secretary shall establish a 
        program to utilize those programs that are capable of 
        implementing port security antiterrorism measures at 
        ports in foreign countries that the Secretary finds, 
        under section 70108, 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 United States 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 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.
  (d) International Cargo Security Standards.--The Secretary of 
State, in consultation with the Secretary acting through the 
Commissioner of Customs and Border Protection, shall enter into 
negotiations with foreign governments and international 
organizations, including the International Maritime 
Organization, the World Customs Organization, the International 
Labor Organization, and the International Standards 
Organization, as appropriate--
          (1) to promote standards for the security of 
        containers and other cargo moving within the 
        international supply chain;
          (2) to encourage compliance with minimum technical 
        requirements for the capabilities of nonintrusive 
        inspection equipment, including imaging and radiation 
        detection devices, established under section 506 of the 
        Transportation Security Improvement Act of 2005;
          (3) to implement the requirements of the container 
        security initiative under section 70121; and
          (4) to implement standards and procedures established 
        under section 70116.

Sec. 70116. Secure systems of transportation

  (a) In general.--The Secretary, in consultation with the 
Transportation Security Oversight Board, shall establish a 
program to evaluate and certify secure systems of international 
intermodal [transportation.] transportation--
          (1) to ensure the security and integrity of shipments 
        of goods to the United States from the point at which 
        such goods are initially packed or loaded into a cargo 
        container for international shipment until they reach 
        their ultimate destination; and
          (2) to facilitate the movement of such goods through 
        the entire supply chain through an expedited security 
        and clearance program.
  [(b) Elements of program.--The program shall include--
          [(1) establishing standards and procedures for 
        screening and evaluating cargo prior to loading in a 
        foreign port for shipment to the United States either 
        directly or via a foreign port;
          [(2) establishing standards and procedures for 
        securing cargo and monitoring that security while in 
        transit;
          [(3) developing performance standards to enhance the 
        physical security of shipping containers, including 
        standards for seals and locks;
          [(4) establishing standards and procedures for 
        allowing the United States Government to ensure and 
        validate compliance with this program; and
          [(5) any other measures the Secretary considers 
        necessary to ensure the security and integrity of 
        international intermodal transport movements.]
  (b) Program Elements.--In establishing and conducting the 
program under subsection (a) the Secretary, acting through the 
Commissioner of Customs and Border Protection, shall--
          (1) establish standards and procedures for verifying, 
        at the point at which goods are placed in a cargo 
        container for shipping, that the container is free of 
        unauthorized hazardous chemical, biological, or nuclear 
        material and for securely sealing such containers after 
        the contents are so verified;
          (2) establish standards and procedures for screening 
        and evaluating cargo prior to loading in a foreign port 
        for shipment to the United States either directly or 
        via a foreign port;
          (3) establish standards and procedures for securing 
        cargo and monitoring that security while in transit;
          (4) develop performance standards to enhance the 
        physical security of shipping containers, including 
        performance standards for seals and locks;
        (5) establish standards and procedures for allowing the 
        United States Government to ensure and validate 
        compliance with this program; and
        (6) incorporate any other measures the Secretary 
        considers necessary to ensure the security and 
        integrity of international intermodal transport 
        movements.
  (c) Benefits from Participation.--The Commissioner of Customs 
and Border Protection may provide expedited clearance of cargo 
to an entity that--
          (1) meets or exceeds the standards established under 
        subsection (b); and
          (2) certifies the security of its supply chain not 
        less often than once every 2 years to the Secretary.

Sec. 70117. In rem liability for civil penalties and certain costs

  (a) Civil penalties.--Any vessel operated in violation of 
this chapter or any regulations prescribed under this chapter 
shall be liable in rem for any civil penalty assessed pursuant 
to [section 70120] section 70123 for such violation, and may be 
proceeded against for such liability in the United States 
district court for any district in which the vessel may be 
found.
  (b) Reimbursable Costs of Service Providers.--A vessel shall 
be liable in rem for the reimbursable costs incurred by any 
service provider related to implementation and enforcement of 
this chapter and arising from a violation by the operator of 
the vessel of this chapter or any regulations prescribed under 
this chapter, and may be proceeded against for such liability 
in the United States district court for any district in which 
such vessel may be found.
  (c) Definitions.--In this subsection--
          (1) the term ``reimbursable costs'' means costs 
        incurred by any service provider acting in conformity 
        with a lawful order of the Federal government or in 
        conformity with the instructions of the vessel 
        operator; and
          (2) the term ``service provider'' means any port 
        authority, facility or terminal operator, shipping 
        agent, Federal, State, or local government agency, or 
        other person to whom the management of the vessel at 
        the port of supply is entrusted, for--
                  (A) services rendered to or in relation to 
                vessel crew on board the vessel, or in transit 
                to or from the vessel, including accommodation, 
                detention, transportation, and medical 
                expenses; and
                  (B) required handling of cargo or other items 
                on board the vessel.

[Sec. 70118. Withholding of clearance]

Sec. 70119. Withholding of clearance

  (a) Refusal or revocation of clearance.--If any owner, agent, 
master, officer, or person in charge of a vessel is liable for 
a penalty [under section 70119,] under section 70123, or if 
reasonable cause exists to believe that the owner, agent, 
master, officer, or person in charge may be subject to a 
penalty [under section 70120,] under that section, the 
Secretary may, with respect to such vessel, refuse or revoke 
any clearance required by section 4197 of the Revised Statutes 
of the United States (46 U.S.C. App. 91).
  (b) Clearance upon filing of bond or other surety.--The 
Secretary may require the filing of a bond or other surety as a 
condition of granting clearance refused or revoked under this 
subsection. [

Sec. 70119. Enforcement by State and local officers]

Sec. 70120. Enforcement by State and local officers

  (a) In General.--Any State or local government law 
enforcement officer who has authority to enforce State criminal 
laws may make an arrest for violation of a security zone 
regulation prescribed under section 1 of title II of the Act of 
June 15, 1917 (chapter 30; 50 U.S.C. 191) or security or safety 
zone regulation under section 7(b) of the Ports and Waterways 
Safety Act (33 U.S.C. 1226(b)) or a safety zone regulation 
prescribed under section 10(d) of the Deepwater Port Act of 
1974 (33 U.S.C. 1509(d)) by a Coast Guard official authorized 
by law to prescribe such regulations, if--
          (1) such violation is a felony; and
          (2) the officer has reasonable grounds to believe 
        that the person to be arrested has committed or is 
        committing such violation.
  (b) Other Powers Not Affected.--The provisions of this 
section are in addition to any power conferred by law to such 
officers. This section shall not be construed as a limitation 
of any power conferred by law to such officers, or any other 
officer of the United States or any State. This section does 
not grant to such officers any powers not authorized by the law 
of the State in which those officers are employed.

Sec. 70121. Container security initiative

  (a) In General.--Pursuant to the standards established under 
subsection (b)(1) of section 70116--
          (1) the Secretary, through the Commissioner of 
        Customs and Border Protection, shall issue regulations 
        to--
                  (A) evaluate and screen cargo documents prior 
                to loading in a foreign port for shipment to 
                the United States, either directly or via a 
                foreign port; and
                  (B) inspect high-risk cargo in a foreign port 
                intended for shipment to the United States by 
                physical examination or nonintrusive 
                examination by technological means; and
          (2) the Commissioner of Customs and Border Protection 
        shall execute inspection and screening protocols with 
        authorities in foreign ports to ensure that the 
        standards and procedures promulgated under paragraph 
        (1) are implemented in an effective manner.
  (b) Extension of Container Security Initiative to Other 
Ports.--The Secretary, through the Commissioner of Customs and 
Border Protection, may designate foreign seaports under this 
section if, with respect to any such seaport, the Secretary 
determines that--
          (1) the seaport--
                  (A) presents a significant level of risk;
                  (B) is a significant port or origin or 
                transshipment, in terms of volume or value, for 
                cargo being imported to the United States; and
                  (C) is potentially capable of validating a 
                secure system of transportation pursuant to 
                section 70116; and
          (2) the Department of State and representatives of 
        the country with jurisdiction over the port have 
        completed negotiations to ensure compliance with the 
        requirements of the container security initiative.
  (c) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary to carry out this section--
          (1) $142,000,000 for fiscal year 2007;
          (2) $144,000,000 for fiscal year 2008; and
          (3) $146,000,000 for fiscal year 2009.

Sec. 70122. Customs-Trade Partnership Against Terrorism validation 
                    program.

  (a) Validation; Records Management.--The Secretary of 
Homeland Security, through the Commissioner of Customs and 
Border Protection, shall issue regulations--
          (1) to strengthen the validation process to verify 
        that security programs of members of the Customs-Trade 
        Partnership Against Terrorism have been implemented and 
        that the program benefits should continue by providing 
        appropriate guidance to specialists conducting such 
        validations, including establishing what level of 
        review is adequate to determine whether member security 
        practices are reliable, accurate, and effective; and
          (2) to implement a records management system that 
        documents key decisions and significant operational 
        events accurately and in a timely manner, including a 
        reliable system for--
                  (A) documenting and maintaining records of 
                all decisions in the application through 
                validation processes, including documentation 
                of the objectives, scope, methodologies, and 
                limitations of validations; and
                  (B) tracking member status.
  (b) Human Capital Plan.--Within 6 months after the date of 
enactment of the Transportation Security Improvement Act of 
2005, the Secretary shall complete a human capital plan, that 
clearly describes how the Customs-Trade Partnership Against 
Terrorism program will recruit, train, and retain sufficient 
staff to conduct the work of the program successfully, 
including reviewing security profiles, vetting, and conducting 
validations to mitigate program risk.

[Sec. 70119. Civil penalty]

Sec. 70123. Civil penalty

  Any person that violates this chapter or any regulation under 
this chapter shall be liable to the United States for a civil 
penalty of not more than $25,000 for each violation.

                      TITLE 49, UNITED STATES CODE

                SUBTITLE I--DEPARTMENT OF TRANSPORTATION

                        CHAPTER 1. ORGANIZATION

Sec. 114. Transportation Security Administration

  (a) In general.--The Transportation Security Administration 
shall be an administration of the Department of Transportation.
  (b) Under Secretary.--
          (1) Appointment.--The head of the Administration 
        shall be the Under Secretary of Transportation for 
        Security. The Under Secretary shall be appointed by the 
        President, by and with the advice and consent of the 
        Senate.
          (2) Qualifications.--The Under Secretary must--
                  (A) be a citizen of the United States; and
                  (B) have experience in a field directly 
                related to transportation or security.
          (3) Term.--The term of office of an individual 
        appointed as the Under Secretary shall be 5 years.
  (c) Limitation on ownership of stocks and bonds.--The Under 
Secretary may not own stock in or bonds of a transportation or 
security enterprise or an enterprise that makes equipment that 
could be used for security purposes.
  (d) Functions.--The Under Secretary shall be responsible for 
security in all modes of transportation, including--
          (1) carrying out chapter 449, relating to civil 
        aviation security, and related research and development 
        activities; and
          (2) security responsibilities over other modes of 
        transportation that are exercised by the Department of 
        Transportation.
  (e) Screening operations.--The Under Secretary shall--
          (1) be responsible for day-to-day Federal security 
        screening operations for passenger air transportation 
        and intrastate air transportation under sections 44901 
        and 44935;
          (2) develop standards for the hiring and retention of 
        security screening personnel;
          (3) train and test security screening personnel; and
          (4) be responsible for hiring and training personnel 
        to provide security screening at all airports in the 
        United States where screening is required under section 
        44901, in consultation with the Secretary of 
        Transportation and the heads of other appropriate 
        Federal agencies and departments.
  (f) Additional duties and powers.--In addition to carrying 
out the functions specified in subsections (d) and (e), the 
Under Secretary shall--
          (1) receive, assess, and distribute intelligence 
        information related to transportation security;
          (2) assess threats to transportation;
          (3) develop policies, strategies, and plans for 
        dealing with threats to transportation security;
          (4) make other plans related to transportation 
        security, including coordinating countermeasures with 
        appropriate departments, agencies, and 
        instrumentalities of the United States Government;
          (5) serve as the primary liaison for transportation 
        security to the intelligence and law enforcement 
        communities;
          (6) on a day-to-day basis, manage and provide 
        operational guidance to the field security resources of 
        the Administration, including Federal Security Managers 
        as provided by section 44933;
          (7) enforce security-related regulations and 
        requirements;
          (8) identify and undertake research and development 
        activities necessary to enhance transportation 
        security;
          (9) inspect, maintain, and test security facilities, 
        equipment, and systems;
          (10) ensure the adequacy of security measures for the 
        transportation of cargo;
          (11) oversee the implementation, and ensure the 
        adequacy, of security measures at airports and other 
        transportation facilities;
          (12) require background checks for airport security 
        screening personnel, individuals with access to secure 
        areas of airports, and other transportation security 
        personnel;
          (13) work in conjunction with the Administrator of 
        the Federal Aviation Administration with respect to any 
        actions or activities that may affect aviation safety 
        or air carrier operations;
          (14) work with the International Civil Aviation 
        Organization and appropriate aeronautic authorities of 
        foreign governments under section 44907 to address 
        security concerns on passenger flights by foreign air 
        carriers in foreign air transportation; and
          (15) carry out such other duties, and exercise such 
        other powers, relating to transportation security as 
        the Under Secretary considers appropriate, to the 
        extent authorized by law.
  (g) National emergency responsibilities.--
          (1) In general.--Subject to the direction and control 
        of the Secretary, the Under Secretary, during a 
        national emergency, shall have the following 
        responsibilities:
                  (A) To coordinate domestic transportation, 
                including aviation, rail, and other surface 
                transportation, and maritime transportation 
                (including port security).
                  (B) To coordinate and oversee the 
                transportation-related responsibilities of 
                other departments and agencies of the Federal 
                Government other than the Department of Defense 
                and the military departments.
                  (C) To coordinate and provide notice to other 
                departments and agencies of the Federal 
                Government, and appropriate agencies of State 
                and local governments, including departments 
                and agencies for transportation, law 
                enforcement, and border control, about threats 
                to transportation.
                  (D) To carry out such other duties, and 
                exercise such other powers, relating to 
                transportation during a national emergency as 
                the Secretary shall prescribe.
          (2) Authority of other departments and agencies.--The 
        authority of the Under Secretary under this subsection 
        shall not supersede the authority of any other 
        department or agency of the Federal Government under 
        law with respect to transportation or transportation-
        related matters, whether or not during a national 
        emergency.
          (3) Circumstances.--The Secretary shall prescribe the 
        circumstances constituting a national emergency for 
        purposes of this subsection.
  (h) Management of security information.--In consultation with 
the Transportation Security Oversight Board, the Under 
Secretary shall--
          (1) enter into memoranda of understanding with 
        Federal agencies or other entities to share or 
        otherwise cross-check as necessary data on individuals 
        identified on Federal agency databases who may pose a 
        risk to transportation or national security;
          (2) establish procedures for notifying the 
        Administrator of the Federal Aviation Administration, 
        appropriate State and local law enforcement officials, 
        and airport or airline security officers of the 
        identity of individuals known to pose, or suspected of 
        posing, a risk of air piracy or terrorism or a threat 
        to airline or passenger safety;
          (3) in consultation with other appropriate Federal 
        agencies and air carriers, establish policies and 
        procedures requiring air carriers--
                  (A) to use information from government 
                agencies to identify individuals on passenger 
                lists who may be a threat to civil aviation or 
                national security; and
                  (B) if such an individual is identified, 
                notify appropriate law enforcement agencies, 
                prevent the individual from boarding an 
                aircraft, or take other appropriate action with 
                respect to that individual; and
          (4) consider requiring passenger air carriers to 
        share passenger lists with appropriate Federal agencies 
        for the purpose of identifying individuals who may pose 
        a threat to aviation safety or national security.
  (i) View of NTSB.--In taking any action under this section 
that could affect safety, the Under Secretary shall give great 
weight to the timely views of the National Transportation 
Safety Board.
  (j) Acquisitions.--
          (1) In general.--The Under Secretary is authorized--
                  (A) to acquire (by purchase, lease, 
                condemnation, or otherwise) such real property, 
                or any interest therein, within and outside the 
                continental United States, as the Under 
                Secretary considers necessary;
                  (B) to acquire (by purchase, lease, 
                condemnation, or otherwise) and to construct, 
                repair, operate, and maintain such personal 
                property (including office space and patents), 
                or any interest therein, within and outside the 
                continental United States, as the Under 
                Secretary considers necessary;
                  (C) to lease to others such real and personal 
                property and to provide by contract or 
                otherwise for necessary facilities for the 
                welfare of its employees and to acquire, 
                maintain, and operate equipment for these 
                facilities;
                  (D) to acquire services, including such 
                personal services as the Secretary determines 
                necessary, and to acquire (by purchase, lease, 
                condemnation, or otherwise) and to construct, 
                repair, operate, and maintain research and 
                testing sites and facilities; and
                  (E) in cooperation with the Administrator of 
                the Federal Aviation Administration, to utilize 
                the research and development facilities of the 
                Federal Aviation Administration.
          (2) Title.--Title to any property or interest therein 
        acquired pursuant to this subsection shall be held by 
        the Government of the United States.
  (k) Transfers of funds.--The Under Secretary is authorized to 
accept transfers of unobligated balances and unexpended 
balances of funds appropriated to other Federal agencies (as 
such term is defined in section 551(1) of title 5) to carry out 
functions transferred, on or after the date of enactment of the 
Aviation and Transportation Security Act, by law to the Under 
Secretary.
  (l) Regulations.--
          (1) In general.--The Under Secretary is authorized to 
        issue, rescind, and revise such regulations as are 
        necessary to carry out the functions of the 
        Administration.
          (2) Emergency procedures.--
                  (A) In general.--Notwithstanding any other 
                provision of law or executive order (including 
                an executive order requiring a cost-benefit 
                analysis), if the Under Secretary determines 
                that a regulation or security directive must be 
                issued immediately in order to protect 
                transportation security, the Under Secretary 
                shall issue the regulation or security 
                directive without providing notice or an 
                opportunity for comment and without prior 
                approval of the Secretary.
                  (B) Review by Transportation Security 
                Oversight Board.--Any regulation or security 
                directive issued under this paragraph shall be 
                subject to review by the Transportation 
                Security Oversight Board established under 
                section 115. Any regulation or security 
                directive issued under this paragraph shall 
                remain effective for a period not to exceed 90 
                days unless ratified or disapproved by the 
                Board or rescinded by the Under Secretary.
          (3) Factors to consider.--In determining whether to 
        issue, rescind, or revise a regulation under this 
        section, the Under Secretary shall consider, as a 
        factor in the final determination, whether the costs of 
        the regulation are excessive in relation to the 
        enhancement of security the regulation will provide. 
        The Under Secretary may waive requirements for an 
        analysis that estimates the number of lives that will 
        be saved by the regulation and the monetary value of 
        such lives if the Under Secretary determines that it is 
        not feasible to make such an estimate.
          (4) Airworthiness objections by FAA.--
                  (A) In general.--The Under Secretary shall 
                not take an aviation security action under this 
                title if the Administrator of the Federal 
                Aviation Administration notifies the Under 
                Secretary that the action could adversely 
                affect the airworthiness of an aircraft.
                  (B) Review by Secretary.--Notwithstanding 
                subparagraph (A), the Under Secretary may take 
                such an action, after receiving a notification 
                concerning the action from the Administrator 
                under subparagraph (A), if the Secretary of 
                Transportation subsequently approves the 
                action.
  (m) Personnel and services; cooperation by Under Secretary.--
          (1) Authority of under secretary.--In carrying out 
        the functions of the Administration, the Under 
        Secretary shall have the same authority as is provided 
        to the Administrator of the Federal Aviation 
        Administration under subsections (l) and (m) of section 
        106.
          (2) Authority of agency heads.--The head of a Federal 
        agency shall have the same authority to provide 
        services, supplies, equipment, personnel, and 
        facilities to the Under Secretary as the head has to 
        provide services, supplies, equipment, personnel, and 
        facilities to the Administrator of the Federal Aviation 
        Administration under section 106(m).
  (n) Personnel management system.--The personnel management 
system established by the Administrator of the Federal Aviation 
Administration under section 40122 shall apply to employees of 
the Transportation Security Administration, or, subject to the 
requirements of such section, the Under Secretary may make such 
modifications to the personnel management system with respect 
to such employees as the Under Secretary considers appropriate, 
such as adopting aspects of other personnel systems of the 
Department of Transportation.
  [(o) Acquisition management system.--The acquisition 
management system established by the Administrator of the 
Federal Aviation Administration under section 40110 shall apply 
to acquisitions of equipment, supplies, and materials by the 
Transportation Security Administration, or, subject to the 
requirements of such section, the Under Secretary may make such 
modifications to the acquisition management system with respect 
to such acquisitions of equipment, supplies, and materials as 
the Under Secretary considers appropriate, such as adopting 
aspects of other acquisition management systems of the 
Department of Transportation.]
  [(p)] (o) Authority of Inspector General.--The Transportation 
Security Administration shall be subject to the Inspector 
General Act of 1978 (5 U.S.C. App.) and other laws relating to 
the authority of the Inspector General of the Department of 
Transportation.
  [(q)] (p) Law enforcement powers.--
          (1) In general.--The Under Secretary may designate an 
        employee of the Transportation Security Administration 
        or other Federal agency to serve as a law enforcement 
        officer.
          (2) Powers.--While engaged in official duties of the 
        Administration as required to fulfill the 
        responsibilities under this section, a law enforcement 
        officer designated under paragraph (1) may--
                  (A) carry a firearm;
                  (B) make an arrest without a warrant for any 
                offense against the United States committed in 
                the presence of the officer, or for any felony 
                cognizable under the laws of the United States 
                if the officer has probable cause to believe 
                that the person to be arrested has committed or 
                is committing the felony; and
                  (C) seek and execute warrants for arrest or 
                seizure of evidence issued under the authority 
                of the United States upon probable cause that a 
                violation has been committed.
          (3) Guidelines on exercise of authority.--The 
        authority provided by this subsection shall be 
        exercised in accordance with guidelines prescribed by 
        the Under Secretary, in consultation with the Attorney 
        General of the United States, and shall include 
        adherence to the Attorney General's policy on use of 
        deadly force.
          (4) Revocation or suspension of authority.--The 
        powers authorized by this subsection may be rescinded 
        or suspended should the Attorney General determine that 
        the Under Secretary has not complied with the 
        guidelines prescribed in paragraph (3) and conveys the 
        determination in writing to the Secretary of 
        Transportation and the Under Secretary.
  [(r)] (q) Authority to exempt.--The Under Secretary may grant 
an exemption from a regulation prescribed in carrying out this 
section if the Under Secretary determines that the exemption is 
in the public interest.
  [(s)] (r) Nondisclosure of security activities.--
          (1) In general.--Notwithstanding section 552 of title 
        5, the Under Secretary shall prescribe regulations 
        prohibiting the disclosure of information obtained or 
        developed in carrying out security under authority of 
        the Aviation and Transportation Security Act (Public 
        Law 107-71) or under chapter 449 of this title if the 
        Under Secretary decides that disclosing the information 
        would--
                  (A) be an unwarranted invasion of personal 
                privacy;
                  (B) reveal a trade secret or privileged or 
                confidential commercial or financial 
                information; or
                  (C) be detrimental to the security of 
                transportation.
          (2) Availability of information to Congress.--
        Paragraph (1) does not authorize information to be 
        withheld from a committee of Congress authorized to 
        have the information.
          (3) Limitation on transferability of duties.--Except 
        as otherwise provided by law, the Under Secretary may 
        not transfer a duty or power under this subsection to 
        another department, agency, or instrumentality of the 
        United States.
  [(t)] (s) Transportation security strategic planning.--
          (1) In general.--The Secretary of Homeland Security 
        shall develop, prepare, implement, and update, as 
        needed--
                  (A) a National Strategy for Transportation 
                Security; and
                  (B) transportation modal security plans.
          (2) Role of Secretary of Transportation.--The 
        Secretary of Homeland Security shall work jointly with 
        the Secretary of Transportation in developing, 
        revising, and updating the documents required by 
        paragraph (1).
          (3) Contents of National Strategy for Transportation 
        Security.--The National Strategy for Transportation 
        Security shall include the following:
                  (A) An identification and evaluation of the 
                transportation assets in the United States 
                that, in the interests of national security and 
                commerce, must be protected from attack or 
                disruption by terrorist or other hostile 
                forces, including modal security plans for 
                aviation, bridge and tunnel, commuter rail and 
                ferry, highway, maritime, pipeline, rail, mass 
                transit, over-the-road bus, and other public 
                transportation infrastructure assets that could 
                be at risk of such an attack or disruption.
                  (B) The development of risk-based priorities 
                across all transportation modes and realistic 
                deadlines for addressing security needs 
                associated with those assets referred to in 
                subparagraph (A).
                  (C) The most appropriate, practical, and 
                cost-effective means of defending those assets 
                against threats to their security.
                  (D) A forward-looking strategic plan that 
                sets forth the agreed upon roles and missions 
                of Federal, State, regional, and local 
                authorities and establishes mechanisms for 
                encouraging private sector cooperation and 
                participation in the implementation of such 
                plan.
                  (E) A comprehensive delineation of response 
                and recovery responsibilities and issues 
                regarding threatened and executed acts of 
                terrorism within the United States.
                  (F) A prioritization of research and 
                development objectives that support 
                transportation security needs, giving a higher 
                priority to research and development directed 
                toward protecting vital transportation assets.
          (4) Submissions of plans to Congress.--
                  (A) Initial strategy.--The Secretary of 
                Homeland Security shall submit the National 
                Strategy for Transportation Security, including 
                the transportation modal security plans, 
                developed under this subsection to the 
                appropriate congressional committees not later 
                than April 1, 2005.
                  (B) Subsequent versions.--After December 31, 
                2005, the Secretary of Homeland Security shall 
                submit the National Strategy for Transportation 
                Security, including the transportation modal 
                security plans and any revisions to the 
                National Strategy for Transportation Security 
                and the transportation modal security plans, to 
                appropriate congressional committees not less 
                frequently than April 1 of each even-numbered 
                year.
                  (C) Periodic progress report.--
                          (i) Requirement for report.--Each 
                        year, in conjunction with the 
                        submission of the budget to Congress 
                        under section 1105(a) of title 31, 
                        United States Code, the Secretary of 
                        Homeland Security shall submit to the 
                        appropriate congressional committees an 
                        assessment of the progress made on 
                        implementing the National Strategy for 
                        Transportation Security.
                          (ii) Content.--Each progress report 
                        under this subparagraph shall include, 
                        at a minimum, recommendations for 
                        improving and implementing the National 
                        Strategy for Transportation Security 
                        and the transportation modal security 
                        plans that the Secretary, in 
                        consultation with the Secretary of 
                        Transportation, considers appropriate.
                  (D) Classified material.--Any part of the 
                National Strategy for Transportation Security 
                or the transportation modal security plans that 
                involve information that is properly classified 
                under criteria established by Executive order 
                shall be submitted to the appropriate 
                congressional committees separately in a 
                classified format.
                  (E) Appropriate congressional committees 
                defined.--In this subsection, the term 
                ``appropriate congressional committees'' means 
                the Committee on Transportation and 
                Infrastructure and the Select Committee on 
                Homeland Security of the House of 
                Representatives and the Committee on Commerce, 
                Science, and Transportation and the Committee 
                on Homeland Security and Governmental Affairs 
                of the Senate.
          (5) Priority status.--
                  (A) In general.--The National Strategy for 
                Transportation Security shall be the governing 
                document for Federal transportation security 
                efforts.
                  (B) Other plans and reports.--The National 
                Strategy for Transportation Security shall 
                include, as an integral part or as an 
                appendix--
                          (i) the current National Maritime 
                        Transportation Security Plan under 
                        section 70103 of title 46;
                          (ii) the report required by section 
                        44938 of this title;
                          (iii) transportation modal security 
                        plans required under this section; and
                          (iv) any other transportation 
                        security plan or report that the 
                        Secretary of Homeland Security 
                        determines appropriate for inclusion.
  (u) Authorization of Appropriations.--There are authorized to 
be appropriated to the Secretary of Homeland Security--
          (1) for Aviation Security--
                  (A) $5,000,000,000 for fiscal year 2007;
                  (B) $5,250,000,000 for fiscal year 2008; and
                  (C) $5,500,000,000 for fiscal year 2009;
          (2) for Surface Transportation Security--
                  (A) $265,000,000 for fiscal year 2007;
                  (B) $228,000,000 for fiscal year 2008; and
                  (C) $230,000,000 for fiscal year 2009;
          (3) for Intelligence--
                  (A) $30,000,000 for fiscal year 2007;
                  (B) $32,000,000 for fiscal year 2008; and
                  (C) $34,000,000 for fiscal year 2009;
          (4) for Research and Development--
                  (A) $65,000,000 for fiscal year 2007;
                  (B) $67,000,000 for fiscal year 2008; and
                  (C) $69,000,000 for fiscal year 2009; and
          (5) for Administration--
                  (A) $530,000,000 for fiscal year 2007;
                  (B) $535,000,000 for fiscal year 2008; andI24  
                (C) $540,000,000 for fiscal year 2009.

                       SUBTITLE V--RAIL PROGRAMS

                             PART A--SAFETY

                          CHAPTER 201. GENERAL

                         SUBCHAPTER I. GENERAL

Sec. 20103. General authority

  (a) Regulations and orders.--The Secretary of Transportation, 
as necessary, shall prescribe regulations and issue orders for 
every area of railroad [safety] safety, including security, 
supplementing laws and regulations in effect on October 16, 
1970. When prescribing a security regulation or issuing a 
security order that affects the safety of railroad operations, 
the Secretary of Homeland Security shall consult with the 
Secretary.
  (b) Regulations of practice for proceedings.--The Secretary 
shall prescribe regulations of practice applicable to each 
proceeding under this chapter. The regulations shall reflect 
the varying nature of the proceedings and include time limits 
for disposition of the proceedings. The time limit for 
disposition of a proceeding may not be more than 12 months 
after the date it begins.
  (c) Consideration of information and standards.--In 
prescribing regulations and issuing orders under this section, 
the Secretary shall consider existing relevant safety 
information and standards.
  (d) Waivers. The Secretary may waive compliance with any part 
of a regulation prescribed or order issued under this chapter 
if the waiver is in the public interest and consistent with 
railroad safety. The Secretary shall make public the reasons 
for granting the waiver.
  (e) Hearings.--The Secretary shall conduct a hearing as 
provided by section 553 of title 5 when prescribing a 
regulation or issuing an order under this chapter, including a 
regulation or order establishing, amending, or waiving 
compliance with a railroad safety regulation prescribed or 
order issued under this chapter. An opportunity for an oral 
presentation shall be provided.
  (f) Tourist railroad carriers.--In prescribing regulations 
that pertain to railroad safety that affect tourist, historic, 
scenic, or excursion railroad carriers, the Secretary of 
Transportation shall take into consideration any financial, 
operational, or other factors that may be unique to such 
railroad carriers. The Secretary shall submit a report to 
Congress not later than September 30, 1995, on actions taken 
under this subsection.

           *       *       *       *       *       *       *

Sec. 20118. Whistleblower protection for rail security matters

  (a) Discrimination Against Employee.--No rail carrier engaged 
in interstate or foreign commerce may discharge a railroad 
employee or otherwise discriminate against a railroad employee 
because the employee (or any person acting pursuant to a 
request of the employee)--
          (1) provided, caused to be provided, or is about to 
        provide or cause to be provided, to the employer or the 
        Federal Government information relating to a reasonably 
        perceived threat, in good faith, to security; or
          (2) provided, caused to be provided, or is about to 
        provide or cause to be provided, testimony before 
        Congress or at any Federal or State proceeding 
        regarding a reasonably perceived threat, in good faith, 
        to security; or
          (3) refused to violate or assist in the violation of 
        any law, rule or regulation related to rail security.
  (b) Dispute Resolution.--A dispute, grievance, or claim 
arising under this section is subject to resolution under 
section 3 of the Railway Labor Act (45 U.S.C. 153). In a 
proceeding by the National Railroad Adjustment Board, a 
division or delegate of the Board, or another board of 
adjustment established under section 3 to resolve the dispute, 
grievance, or claim the proceeding shall be expedited and the 
dispute, grievance, or claim shall be resolved not later than 
180 days after it is filed. If the violation is a form of 
discrimination that does not involve discharge, suspension, or 
another action affecting pay, and no other remedy is available 
under this subsection, the Board, division, delegate, or other 
board of adjustment may award the employee reasonable damages, 
including punitive damages, of not more than $20,000.
  (c) Procedural Requirements.--Except as provided in 
subsection (b), the procedure set forth in section 
42121(b)(2)(B) of this title, including the burdens of proof, 
applies to any complaint brought under this section.
  (d) Election of Remedies.--An employee of a railroad carrier 
may not seek protection under both this section and another 
provision of law for the same allegedly unlawful act of the 
carrier.
  (e) Disclosure of Identity.--
          (1) Except as provided in paragraph (2) of this 
        subsection, or with the written consent of the 
        employee, the Secretary of Transportation may not 
        disclose the name of an employee of a railroad carrier 
        who has provided information about an alleged violation 
        of this section.
          (2) The Secretary shall disclose to the Attorney 
        General the name of an employee described in paragraph 
        (1) of this subsection if the matter is referred to the 
        Attorney General for enforcement.

                    PART C--PASSENGER TRANSPORTATION

                          CHAPTER 243. AMTRAK

Sec. 24316. Plans to address needs of families of passengers involved 
                    in rail passenger accidents

  (a) Submission of Plan.--Not later than 6 months after the 
date of the enactment of the Rail Security Act of 2005, Amtrak 
shall submit to the Chairman of the National Transportation 
Safety Board, the Secretary of Transportation, and the 
Secretary of Homeland Security a plan for addressing the needs 
of the families of passengers involved in any rail passenger 
accident involving an Amtrak intercity train and resulting in a 
loss of life.
  (b) Contents of Plans.--The plan to be submitted by Amtrak 
under subsection (a) shall include, at a minimum, the 
following:
          (1) A process by which Amtrak will maintain and 
        provide to the National Transportation Safety Board and 
        the Secretary of Transportation, immediately upon 
        request, a list (which is based on the best available 
        information at the time of the request) of the names of 
        the passengers aboard the train (whether or not such 
        names have been verified), and will periodically update 
        the list. The plan shall include a procedure, with 
        respect to unreserved trains and passengers not holding 
        reservations on other trains, for Amtrak to use 
        reasonable efforts to ascertain the number and names of 
        passengers aboard a train involved in an accident.
          (2) A plan for creating and publicizing a reliable, 
        toll-free telephone number within 4 hours after such an 
        accident occurs, and for providing staff, to handle 
        calls from the families of the passengers.
          (3) A process for notifying the families of the 
        passengers, before providing any public notice of the 
        names of the passengers, by suitably trained 
        individuals.
          (4) A process for providing the notice described in 
        paragraph (2) to the family of a passenger as soon as 
        Amtrak has verified that the passenger was aboard the 
        train (whether or not the names of all of the 
        passengers have been verified).
          (5) A process by which the family of each passenger 
        will be consulted about the disposition of all remains 
        and personal effects of the passenger within Amtrak's 
        control; that any possession of the passenger within 
        Amtrak's control will be returned to the family unless 
        the possession is needed for the accident investigation 
        or any criminal investigation; and that any unclaimed 
        possession of a passenger within Amtrak's control will 
        be retained by the rail passenger carrier for at least 
        18 months.
          (6) A process by which the treatment of the families 
        of nonrevenue passengers will be the same as the 
        treatment of the families of revenue passengers.
          (7) An assurance that Amtrak will provide adequate 
        training to its employees and agents to meet the needs 
        of survivors and family members following an accident.
  (c) Use of Information.--The National Transportation Safety 
Board, the Secretary of Transportation, and Amtrak may not 
release any personal information on a list obtained under 
subsection (b)(1) but may provide information on the list about 
a passenger to the family of the passenger to the extent that 
the Board or Amtrak considers appropriate.
  (d) Limitation on Liability.--Amtrak shall not be liable for 
damages in any action brought in a Federal or State court 
arising out of the performance of Amtrak in preparing or 
providing a passenger list, or in providing information 
concerning a train reservation, pursuant to a plan submitted by 
Amtrak under subsection (b), unless such liability was caused 
by Amtrak's conduct.
  (e) Limitation on Statutory Construction.--Nothing in this 
section may be construed as limiting the actions that Amtrak 
may take, or the obligations that Amtrak may have, in providing 
assistance to the families of passengers involved in a rail 
passenger accident.
  (f) Funding.--Out of funds appropriated pursuant to section 
102 of the Rail Security Act of 2005, there shall be made 
available to the Secretary of Transportation for the use of 
Amtrak $500,000 for fiscal year 2007 to carry out this section. 
Amounts made available pursuant to this subsection shall remain 
available until expended.

                         PART E--MISCELLANEOUS

                      CHAPTER 281. LAW ENFORCEMENT

Sec. 28101. Rail police officers

  (a) In General._Under regulations prescribed by the Secretary 
of Transportation, a rail police officer who is employed by a 
rail carrier and certified or commissioned as a police officer 
under the laws of a State may enforce the laws of any 
jurisdiction in which [the rail carrier] any rail carrier owns 
property, to the extent of the authority of a police officer 
certified or commissioned under the laws of that jurisdiction, 
to protect--
          (1) employees, passengers, or patrons of [the rail 
        carrier] any rail carrier;
          (2) property, equipment, and facilities owned, 
        leased, operated, or maintained by the rail carrier;
          (3) property moving in interstate or foreign commerce 
        in the possession of the rail carrier; and
          (4) personnel, equipment, and material moving by rail 
        that are vital to the national defense.

                    SUBTITLE VII. AVIATION PROGRAMS

                          SUBPART III. SAFETY

                         CHAPTER 449. SECURITY

                       SUBCHAPTER I. REQUIREMENTS

Sec. 44924. Repair station security

  (a) Security review and audit.--To ensure the security of 
maintenance and repair work conducted on air carrier aircraft 
and components at foreign repair stations, the Under Secretary 
for Border and Transportation Security of the Department of 
Homeland Security, in consultation with the Administrator of 
the Federal Aviation Administration, shall complete a security 
review and audit of foreign repair stations that are certified 
by the Administrator under part 145 of title 14, Code of 
Federal Regulations, and that work on air carrier aircraft and 
components. The review shall be completed not later than [18 
months] 6 months after the date on which the Under Secretary 
issues regulations under subsection (f).
  (b) Addressing security concerns.--The Under Secretary shall 
require a foreign repair station to address the security issues 
and vulnerabilities identified in a security audit conducted 
under subsection (a) within 90 days of providing notice to the 
repair station of the security issues and vulnerabilities so 
identified and shall notify the Administrator that a deficiency 
was identified in the security audit.
  (c) Suspensions and revocations of certificates.--
          (1) Failure to carry out effective security 
        measures.--If, after the 90th day on which a notice is 
        provided to a foreign repair station under subsection 
        (b), the Under Secretary determines that the foreign 
        repair station does not maintain and carry out 
        effective security measures, the Under Secretary shall 
        notify the Administrator of the determination. Upon 
        receipt of the determination, the Administrator shall 
        suspend the certification of the repair station until 
        such time as the Under Secretary determines that the 
        repair station maintains and carries out effective 
        security measures and transmits the determination to 
        the Administrator.
          (2) Immediate security risk.--If the Under Secretary 
        determines that a foreign repair station poses an 
        immediate security risk, the Under Secretary shall 
        notify the Administrator of the determination. Upon 
        receipt of the determination, the Administrator shall 
        revoke the certification of the repair station.
          (3) Procedures for appeals.--The Under Secretary, in 
        consultation with the Administrator, shall establish 
        procedures for appealing a revocation of a certificate 
        under this subsection.
  (d) Failure to meet audit deadline.--If the security audits 
required by subsection (a) are not completed on or before the 
date that is [18 months] 6 months after the date on which the 
Under Secretary issues regulations under subsection (f), the 
Administrator shall be barred from certifying any foreign 
repair station until such audits are completed for existing 
stations.
  (e) Priority for audits.--In conducting the audits described 
in subsection (a), the Under Secretary and the Administrator 
shall give priority to foreign repair stations located in 
countries identified by the Government as posing the most 
significant security risks.
  (f) Regulations.--Not later than 240 days after the date of 
enactment of this section, the Under Secretary, in consultation 
with the Administrator, shall issue final regulations to ensure 
the security of foreign and domestic aircraft repair stations.
  (g) Report to Congress.--If the Under Secretary does not 
issue final regulations before the deadline specified in 
subsection (f), the Under Secretary shall transmit to the 
Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a report containing an explanation 
as to why the deadline was not met and a schedule for issuing 
the final regulations.

              SUBCHAPTER II. ADMINISTRATION AND PERSONNEL

Sec. 44940. Security service fees

  (a) General Authority.--
          (1) Passenger fees.--The Under Secretary of 
        Transportation for Security shall impose a uniform fee, 
        on passengers of air carriers and foreign air carriers 
        in air transportation and intrastate air transportation 
        originating at airports in the United States, to pay 
        for the following costs of providing civil aviation 
        security services:
                  (A) Salary, benefits, overtime, retirement 
                and other costs of screening personnel, their 
                supervisors and managers, and Federal law 
                enforcement personnel deployed at airport 
                security screening locations under section 
                44901.
                  (B) The costs of training personnel described 
                in subparagraph (A), and the acquisition, 
                operation, and maintenance of equipment used by 
                such personnel.
                  (C) The costs of performing background 
                investigations of personnel described in 
                subparagraphs (A), (D), (F), and (G).
                  (D) The costs of the Federal air marshals 
                program.
                  (E) The costs of performing civil aviation 
                security research and development under this 
                title.
                  (F) The costs of Federal Security Managers 
                under section 44903.
                  (G) The costs of deploying Federal law 
                enforcement personnel pursuant to section 
                44903(h). The amount of such costs shall be 
                determined by the Under Secretary and shall not 
                be subject to judicial review. For purposes of 
                subparagraph (A), the term ``Federal law 
                enforcement personnel'' includes State and 
                local law enforcement officers who are 
                deputized under section 44922.
                  (H) The costs of security-related capital 
                improvements at airports.
                  (I) The costs of training pilots and flight 
                attendants under sections 44918 and 44921.
          (2) Air carrier fees.--
                  (A) Authority.--In addition to the fee 
                imposed pursuant to paragraph (1), and only to 
                the extent that the Under Secretary estimates 
                that such fee will be insufficient to pay for 
                the costs of providing civil aviation security 
                services described in paragraph (1), the Under 
                Secretary may impose a fee on air carriers and 
                foreign air carriers engaged in air 
                transportation and intrastate air 
                transportation to pay for the difference 
                between any such costs and the amount collected 
                from such fee, as estimated by the Under 
                Secretary at the beginning of each fiscal year. 
                The estimates of the Under Secretary under this 
                subparagraph are not subject to judicial 
                review.
                  (B) Limitations.--
                          (i) Overall limit.--The amounts of 
                        fees collected under this paragraph for 
                        each fiscal year may not exceed, in the 
                        aggregate, the amounts paid in calendar 
                        year 2000 by carriers described in 
                        subparagraph (A) for screening 
                        passengers and property, as determined 
                        by the Under Secretary.
                          (ii) Per-carrier limit.--The amount 
                        of fees collected under this paragraph 
                        from an air carrier described in 
                        subparagraph (A) for each of fiscal 
                        years 2002, 2003, and 2004 may not 
                        exceed the amount paid in calendar year 
                        2000 by that carrier for screening 
                        passengers and property, as determined 
                        by the Under Secretary.
                          (iii) Adjustment of per-carrier 
                        limit.--For fiscal year 2005 and 
                        subsequent fiscal years, the per-
                        carrier limitation under clause (ii) 
                        may be determined by the Under 
                        Secretary on the basis of market share 
                        or any other appropriate measure in 
                        lieu of actual screening costs in 
                        calendar year 2000.
                          (iv) Finality of determinations.--
                        Determinations of the Under Secretary 
                        under this subparagraph are not subject 
                        to judicial review.
                  (C) Special rule for fiscal year 2002.--The 
                amount of fees collected under this paragraph 
                from any carrier for fiscal year 2002 may not 
                exceed the amounts paid by that carrier for 
                screening passengers and property for a period 
                of time in calendar year 2000 proportionate to 
                the period of time in fiscal year 2002 during 
                which fees are collected under this paragraph.
                  (D) Fiscal years 2007 and later.--The 
                Assistant Secretary may not increase the 
                aviation security infrastructure fee authorized 
                by subparagraph (A), or impose any additional 
                fees under that subparagraph, after September 
                30, 2006, unless--
                          (i) the fee or increase is imposed by 
                        rule promulgated by the Assistant 
                        Secretary; and
                          (ii) not less than 60 days before its 
                        proposed effective date, the Assistant 
                        Secretary submits the rule to--
                                  (I) the Senate Committee on 
                                Commerce, Science, and 
                                Transportation;
                                  (II) the Senate Committee on 
                                Appropriations;
                                  (III) the House of 
                                Representatives Committee on 
                                Transportation and 
                                Infrastructure;
                                  (IV) the House of 
                                Representatives Committee on 
                                Homeland Security; and
                                  (V) the House of 
                                Representatives Committee on 
                                Appropriations .
                  (E) Application of chapter 8 of title 5.--
                Chapter 8 of title 5 applies to any rule 
                promulgated by the Assistant Secretary imposing 
                a fee or increasing fees under subparagraph (A) 
                after September 30, 2006.
  (b) Schedule of Fees.--In imposing fees under subsection (a), 
the Under Secretary shall ensure that the fees are reasonably 
related to the Transportation Security Administration's costs 
of providing services rendered.
  (c) Limitation on Fee.--Fees imposed under subsection (a)(1) 
may not exceed $2.50 per enplanement in air transportation or 
intrastate air transportation that originates at an airport in 
the United States, except that the total amount of such fees 
may not exceed $5.00 per one-way trip.
  (d) Imposition of Fee.--
          (1) In general.--Notwithstanding section 9701 of 
        title 31 and the procedural requirements of section 553 
        of title 5, the Under Secretary shall impose the fee 
        under subsection (a)(1), and may impose a fee under 
        subsection (a)(2), through the publication of notice of 
        such fee in the Federal Register and begin collection 
        of the fee within 60 days of the date of enactment of 
        this Act, or as soon as possible thereafter.
          (2) Special rules passenger fees.--A fee imposed 
        under subsection (a)(1) through the procedures under 
        subsection (d) shall apply only to tickets sold after 
        the date on which such fee is imposed. If a fee imposed 
        under subsection (a)(1) through the procedures under 
        subsection (d) on transportation of a passenger of a 
        carrier described in subsection (a)(1) is not collected 
        from the passenger, the amount of the fee shall be paid 
        by the carrier.
          (3) Subsequent modification of fee.--After imposing a 
        fee in accordance with paragraph (1), the Under 
        Secretary may modify, from time to time through 
        publication of notice in the Federal Register, the 
        imposition or collection of such fee, or both.
          (4) Limitation on collection.--No fee may be 
        collected under this section except to the extent that 
        the expenditure of the fee to pay the costs of 
        activities and services for which the fee is imposed is 
        provided for in advance in an appropriations Act or in 
        section 44923.
  (e) Administration of Fees.--
          (1) Fees payable to Under Secretary.--All fees 
        imposed and amounts collected under this section are 
        payable to the Under Secretary.
          (2) Fees collected by air carrier.--A fee imposed 
        under subsection (a)(1) shall be collected by the air 
        carrier or foreign air carrier that sells a ticket for 
        transportation described in subsection (a)(1).
          (3) Due date for remittance.--A fee collected under 
        this section shall be remitted on the last day of each 
        calendar month by the carrier collecting the fee. The 
        amount to be remitted shall be for the calendar month 
        preceding the calendar month in which the remittance is 
        made.
          (4) Information.--The Under Secretary may require the 
        provision of such information as the Under Secretary 
        decides is necessary to verify that fees have been 
        collected and remitted at the proper times and in the 
        proper amounts.
          (5) Fee not subject to tax.--For purposes of section 
        4261 of the Internal Revenue Code of 1986 (26 U.S.C. 
        4261), a fee imposed under this section shall not be 
        considered to be part of the amount paid for taxable 
        transportation.
          (6) Cost of collecting fee.--No portion of the fee 
        collected under this section may be retained by the air 
        carrier or foreign air carrier for the costs of 
        collecting, handling, or remitting the fee except for 
        interest accruing to the carrier after collection and 
        before remittance.
  (f) Receipts Credited as Offsetting Collections.--
Notwithstanding section 3302 of title 31, any fee collected 
under this section--
          (1) shall be credited as offsetting collections to 
        the account that finances the activities and services 
        for which the fee is imposed;
          (2) shall be available for expenditure only to pay 
        the costs of activities and services for which the fee 
        is imposed; and
          (3) shall remain available until expended.
  (g) Refunds.--The Under Secretary may refund any fee paid by 
mistake or any amount paid in excess of that required.
  (h) Exemptions.--The Under Secretary may exempt from the 
passenger fee imposed under subsection (a)(1) any passenger 
enplaning at an airport in the United States that does not 
receive screening services under section 44901 for that segment 
of the trip for which the passenger does not receive screening.

              MARITIME TRANSPORTATION SECURITY ACT OF 2002

[SEC. 111. PERFORMANCE STANDARDS.

  [  Not later than January 1, 2004, the Secretary of the 
department in which the Coast Guard is operating, in 
consultation with the Transportation Security Oversight Board, 
shall--
          [  (1) develop and maintain an antiterrorism cargo 
        identification, tracking, and screening system for 
        containerized cargo shipped to and from the United 
        States either directly or via a foreign port; and
          [  (2) develop performance standards to enhance the 
        physical security of shipping containers, including 
        standards for seals and locks.]

                                  
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