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[Senate Report 107-235]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 544
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-235
_______________________________________________________________________

                OVER-THE-ROAD BUS SECURITY GRANT PROGRAM

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                    on

                                S. 1739

                                     

                 August 1, 2002.--Ordered to be printed

                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
99-010                     WASHINGTON : 2002
______________________________________________________________________
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       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                      one hundred seventh congress
                             second session

              ERNEST F. HOLLINGS, South Carolina, Chairman
DANIEL K. INOUYE, Hawaii             JOHN McCAIN, Arizona
JOHN D. ROCKEFELLER IV, West         TED STEVENS, Alaska
    Virginia                         CONRAD BURNS, Montana
JOHN F. KERRY, Massachusetts         TRENT LOTT, Mississippi
JOHN B. BREAUX, Louisiana            KAY BAILEY HUTCHISON, Texas
BYRON L. DORGAN, North Dakota        OLYMPIA J. SNOWE, Maine
RON WYDEN, Oregon                    SAM BROWNBACK, Kansas
MAX CLELAND, Georgia                 GORDON SMITH, Oregon
BARBARA BOXER, California            PETER G. FITZGERALD, Illinois
JOHN EDWARDS, North Carolina         JOHN ENSIGN, Nevada
JEAN CARNAHAN, Missouri              GEORGE ALLEN, Virginia
BILL NELSON, Florida
                     Kevin D. Kayes, Staff Director
                       Moses Boyd, Chief Counsel
                      Gregg Elias, General Counsel
      Jeanne Bumpus, Republican Staff Director and General Counsel
             Ann Begeman, Republican Deputy Staff Director

                                                       Calendar No. 544
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-235

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

 
                OVER-THE-ROAD BUS SECURITY GRANT PROGRAM

                                _______
                                

                 August 1, 2002.--Ordered to be printed

                                _______
                                

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

                              R E P O R T

                         [To accompany S. 1739]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1739) to authorize grants to 
improve security on over-the-road buses, having considered the 
same, reports favorably thereon and recommends that the bill do 
pass.

                          Purpose of the Bill

  The purposes of this bill, as reported, are to establish a 
direct grant program to improve security of over-the-road 
buses, and to authorize the Secretary of Transportation to 
conduct a study to develop recommendations for improved 
security of over-the-road bus operations.

                          Background and Needs

  Over-the-road buses, or motorcoaches, operate in both 
commuter and intercity operations. The motorcoach industry, 
which includes regularly scheduled point-to-point service and 
chartered tour operations, carried more than 774 million 
passengers in the United States in 2000, 28 percent more 
passengers than carried by domestic commercial airlines and 33 
times more passengers than carried by Amtrak. The twelve Class 
I bus companies, defined by the Bureau of Transportation 
Statistics as having revenues of at least $10 million or more 
annually, carried approximately 33 million passengers in 2000. 
According to the Bureau of Transportation Statistics, the 
intercity bus transportation industry serves 5000 locations 
nationwide, many of which are rural communities that might not 
have other modes of intercity transportation available to the 
public. Intercity bus transportation poses difficult logistical 
security problems. Of the 4,000 bus companies, 90 percent 
operate fewer than 25 buses.
  There are worrisome precedents for security breaches on 
buses. For example, in the Middle East, terrorists have used 
buses to cause mass casualties in a number of crowded cities. 
In the United States, Greyhound drivers and passengers were the 
targets of at least 4 serious assaults last year, one killing 7 
passengers and another injuring 33 passengers, and at least 3 
other serious security breaches. No other major United States 
transportation mode had as many incidents of passenger attacks 
during that period. These incidents occurred in states 
throughout the country, including Tennessee, Arizona, Utah, 
Oklahoma, Pennsylvania, and Vermont.
  In one incident on October 3, 2001, in Manchester, Tennessee, 
a passenger aboard a Greyhound bus, on its way to Orlando, 
Florida, attacked the driver and reportedly slit the driver's 
throat. The assailant then grabbed the wheel and ultimately 
caused the bus to flip over. Six people died, including the 
assailant, and more than 30 suffered injuries. Remarkably, the 
driver survived, but the attack highlighted the lack of 
protection for bus drivers.
  In response to the incidents, Greyhound took a number of 
steps to enhance security. These steps include: random 
screening of passengers and baggage (through ``wanding'') at 
selected terminals; requiring ticket identification; providing 
cell phones to drivers as an interim emergency communications 
system; increasing security personnel in terminals; giving the 
driver the right to limit access to the first row of seats; and 
establishing information and communications systems to aid and 
coordinate with law enforcement.
  The bus industry believes that Federal support is needed to 
help improve bus security. These additional security measures 
include: wanding in all terminals; full implementation of a 
ticket identification system; a nationwide emergency 
communications system providing location, audio, and silent 
monitoring; enhanced driver compartment security; increased 
security training; development and maintenance of information 
and communication systems with law enforcement; and other 
measures to make buses, terminals, and garages more secure.
  On October 10, 2001, Senator Breaux chaired a hearing on 
truck and bus security and hazardous materials licensing. 
During the hearing, many issues were raised about the security 
of intercity buses, including driver, terminal, and equipment 
security. Many of the issues raised during the hearing are 
addressed in S. 1739.
  At the hearing, American Bus Association President Peter 
Pantuso outlined several areas where Federal support could help 
improve bus security, including development of a communication 
system for the driver to contact local law enforcement, 
installation of cameras on buses, and creation of a database of 
passengers and their itineraries.
  By virtue of the markets they serve, and competition with 
other modes of passenger transportation, bus passenger service 
operates with thin margins of profitability, and the bus 
industry claims that it may be impossible for it to pay for 
heightened scrutiny and security measures at current profit 
levels. In some years, profits for the entire industry have not 
reached $40 million. According to the United Motorcoach 
Association's testimony submitted for the October 2001 hearing, 
pleasure and business travel, which accounts for nearly 90 
percent of that industry's annual revenue, is 40 percent below 
what it was in previous years. Many of these bus companies are 
small businesses with less than 10 coaches. After the October 
3, 2001, incident near Manchester, TN, American Bus Association 
companies reported up to 80 percent cancellation rates, and 
Greyhound's passenger sales dropped 15 percent and remain below 
last year's levels.
  In H.R. 4775, the Supplemental Appropriation Act for Further 
Recovery From and Response to Terrorist Attacks on the United 
States for fiscal year 2002, $15 million was included for bus 
security measures intended to address the same type of 
security-related issues as identified in S. 1739.

                          Legislative History

  Senator Cleland introduced S. 1739 on November 28, 2001. The 
bill is cosponsored by Senators Breaux and Wyden. On April 18, 
2002, the Committee on Commerce, Science, and Transportation 
ordered S. 1739 to be reported favorably. Although the bill was 
reported without amendment, the Committee agreed in principle 
to several technical amendments which update the fiscal years 
in which appropriations would be authorized, update an 
incorrect reference on page 5, line 20, require the Secretary 
of Transportation to make a preliminary report to Congress 
concerning the progress of developing security recommendations 
for the over-the-road bus industry, and recognize the 
coordination with port security measures where a port is the 
owner of a bus terminal. It is anticipated that when this bill 
is considered by the full Senate, an amendment will be offered 
to reflect these agreements.

                            Estimated Costs

  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:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 13, 2002.
Hon. Ernest F. Hollings,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1739, a bill to 
authorize grants to improve security on over-the-road buses.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Rachel 
Milberg.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

               Congressional Budget Office Cost Estimate

S. 1739--A bill to authorize grants to improve security on over-the-
        road buses

    Summary: S. 1739 would authorize the Secretary of 
Transportation to provide grants to operators of over-the-road 
buses for improving the security of their buses and bus 
terminals. For these grants, the bill would authorize the 
appropriation of $400 million over the 2003-2004 period.
    CBO estimates that implementing S. 1739 would cost $390 
million over the 2003-2007 period, and an additional $10 
million after 2007. S. 1739 would not affect direct spending or 
receipts; therefore, pay-as-you-go procedures would not apply.
    S. 1739 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated Cost to the Federal Government: The estimated 
budgetary impact of S. 1739 is shown in the following table. 
The costs of this legislation fall within budget function 400 
(transportation). For this estimate, CBO assumes that S. 1739 
will be enacted in fiscal year 2002, and that the authorized 
amounts will be appropriated for each year. Estimates of 
spending are based on information from the Federal Transit 
Administration and historical spending patterns of similar 
programs.

----------------------------------------------------------------------------------------------------------------
                                                                       By Fiscal Year, in Millions of Dollars--
                                                                    --------------------------------------------
                                                                       2003     2004     2005     2006     2007
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Authorization Level................................................      200      200        0        0        0
Estimated Outlays..................................................       10       80      130      110       60
----------------------------------------------------------------------------------------------------------------

    Pay-as-you-go considerations: None.
    Intergovernmental and private-sector impact: S. 1739 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal costs: Rachel Milberg; impact 
on state, local, and tribal governments: Susan Sieg Tompkins; 
impact on the private sector: Jean Talarico.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:
  S. 1739 would establish a direct grant program. The 
legislation would have no further effect on the number or types 
of individuals and businesses regulated, the economic impact of 
such regulation, or the paperwork required from such 
individuals and businesses.

                       NUMBER OF PERSONS COVERED

  S. 1739 is intended to improve the security of over-the-road 
bus transportation. The number of persons covered is 
anticipated to include bus riders and bus employees, as well as 
all drivers and passengers who share the road. In addition, 
security personnel, security consulting services, and 
industries that manufacture security equipment would be 
impacted.

                            ECONOMIC IMPACT

  S. 1739 is intended to improve security of over-the-road 
buses. It should not have a detrimental impact on the economy 
of the United States.

                                PRIVACY

  S. 1739 would have an impact on privacy to some extent, 
consistent with other transportation security programs, 
including personal privacy of passengers traveling on motor 
coaches operated by carriers receiving grants under the grant 
program established in section 1.

                               PAPERWORK

  S. 1739 does not create any new reporting requirements, and 
any impact on paperwork would be dependent on application 
procedures established by the Secretary of Transportation.

                      Section-by-Section Analysis

Section 1. Emergency over-the-road bus security assistance

  This section would establish an over-the-road bus security 
grant program to be administered by the Secretary of 
Transportation. It would authorize $200 million each year for 
fiscal years 2002 and 2003 to provide grants for system-wide 
security upgrades and improvements, such as establishing 
emergency communications systems linked to law enforcement and 
emergency response personnel. The section provides grants for 
driver protection; passenger screening and upgrading or 
installing systems to collect or exchange information on 
passengers and drivers with governmental agencies; training 
employees on emergency response techniques; hiring security 
personnel; obtaining passenger manifests; installing 
surveillance equipment; and conducting employee background 
checks.
  The Secretary may not make a grant until the applicant has 
submitted, and the Secretary has approved, a plan for the 
project. Davis-Bacon wage standards would apply to all 
projects.

Section 2. Bus security recommendations

  This section would authorize the use of between $3 and $5 
million of the grant funds by the Secretary to provide for the 
development and dissemination of best practices, a review of 
security and safety measures already taken, and the usefulness 
of certain technology and isolating the driver from passengers. 
The Department of Transportation would be directed to consult 
with appropriate groups, including industry, labor, public 
safety, law enforcement, and the National Academy of Sciences, 
to develop, implement and carry out the grant program.

                        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):

Sec.  31109. Over-the-road bus security grant program

  (a) In General.--
          (1) Fund established.--The Secretary of the Treasury 
        shall establish an Over-the-road Bus Security Fund 
        account in the Treasury into which the Secretary of the 
        Transportation shall deposit amounts appropriated under 
        paragraph (2).
          (2) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary of 
        Transportation $200,000,000 for fiscal year 2002, and 
        $200,000,000 for fiscal year 2003, for deposit into the 
        account established under paragraph (1). Amounts 
        deposited into the account shall remain available until 
        expended.
  (b) Grant Program.--Without further appropriation, amounts in 
the Over-the-road Bus Security Fund account are available to 
the Secretary of Transportation for direct grants to persons 
engaged in the business of providing over-the-road bus 
transportation for system-wide security upgrades, including the 
reimbursement of extraordinary security-related costs 
determined by the Secretary to have been incurred by such 
operators since September 11, 2001, including--
          (1) establishing an emergency communications and 
        notification system linked to law enforcement or 
        emergency response personnel;
          (2) protecting or isolating the driver;
          (3) implementing and operating passenger screening 
        programs at terminals and on over-the-road buses (as 
        defined in section 3038(a)(3) of the Transportation 
        Equity Act for the 21st Century (49 U.S.C. 5310 nt));
          (4) acquiring, upgrading, installing, or operating 
        equipment, software, or accessorial services for 
        collection, storage, or exchange of passenger and 
        driver information through ticketing systems or 
        otherwise, and information links with government 
        agencies;
          (5) constructing or modifying terminals, garages, 
        facilities, or over-the-road buses to assure their 
        security;
          (6) training employees in recognizing and responding 
        to terrorist threats, evacuation procedures, passenger 
        screening procedures, and baggage inspection;
          (7) hiring and training security officers;
          (8) installing cameras and video surveillance 
        equipment on over-the-road buses and at terminals, 
        garages and over-the-road bus facilities; and
          (9) creating a program for employee identification 
        and background investigation.
  (c) Applications.--To receive a grant under subsection (b), 
an applicant shall submit an application, at such time, in such 
manner, in such form, and containing such information, as the 
Secretary may require, and a plan that meets the requirements 
of subsection (c) for the project to be funded, in whole or in 
part, by the grant.
  (d) Plan Required.--The Secretary may not make a grant under 
subsection (b) for a system-wide security upgrade project until 
the applicant has submitted to the Secretary, and the Secretary 
has approved, a plan for the project, and the applicant has 
submitted to the Secretary such additional information as the 
Secretary may require in order to ensure full accountability 
for the obligation or expenditure of grant amounts.
  (e) Federal Standards.--Section 5333 of this title applies to 
any work financed with a grant under this section to the same 
extent as if it were financed with a grant under chapter 53 of 
this title. The application of that section does not affect or 
discharge any other responsibility of the Secretary under this 
title with respect to work financed by a grant under this 
section.

                                  
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