II

Calendar No. 161

107TH CONGRESS

1ST SESSION S. 1214

[Report No. 107–64]

To amend the Merchant Marine Act, 1936, to establish a program to ensure

greater security for United States seaports, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JULY 20, 2001

Mr. HOLLINGS (for himself and Mr. GRAHAM) introduced the following bill;

which was read twice and referred to the Committee on Commerce,

Science, and Transportation

SEPTEMBER 14, 2001

Reported by Mr. Hollings, without amendment

A BILL

To amend the Merchant Marine Act, 1936, to establish a

program to ensure greater security for United States

seaports, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Port and Maritime

5 Security Act of 2001’’.
2

•S 1214 RS

1 SEC. 2. FINDINGS.

2 The Congress makes the following findings:

3 (1) There are 361 public seaports in the United

4 States which have a broad range of characteristics,

5 and all of which are an integral part of our Nation’s

6 commerce.

7 (2) United States seaports conduct over 95 per8 cent of United States overseas trade. Over the next

9 20 years, the total volume of imported and exported

10 goods at seaports is expected to more than double.

11 (3) The variety of trade and commerce that are

12 carried out at seaports has greatly expanded. Bulk

13 cargo, containerized cargo, passenger cargo and

14 tourism, intermodal transportation systems, and

15 complex domestic and international trade relation16 ships have significantly changed the nature, conduct,

17 and complexity of seaport commerce.

18 (4) The top 50 seaports in the United States

19 account for about 90 percent of all the cargo ton20 nage. Twenty-five United States seaports account

21 for 98 percent of all container shipments. Cruise

22 ships visiting foreign destinations embark from 16

23 seaports.

24 (5) In the larger seaports, the activities can

25 stretch along a coast for many miles, including pub26 lic roads within their geographic boundaries. The fa-
3

•S 1214 RS

1 cilities used to support arriving and departing cargo

2 are sometimes miles from the coast.

3 (6) Seaports often are a major locus of Federal

4 crime, including drug trafficking, cargo theft, and

5 smuggling of contraband and aliens. The criminal

6 conspiracies often associated with these crimes can

7 pose threats to the people and critical infrastruc8 tures of seaport cities. Seaports that accept inter9 national cargo have a higher risk of international

10 crimes like drug and alien smuggling and trade

11 fraud.

12 (7) Seaports are often very open and exposed

13 and, by the very nature of their role in promoting

14 the free flow of commerce, are susceptible to large

15 scale terrorism that could pose a threat to coastal,

16 Great Lake, or riverain populations. Seaport ter17 rorism could pose a significant threat to the ability

18 of the United States to pursue its national security

19 objectives.

20 (8) United States seaports are international

21 boundaries, however, unlike United States airports

22 and land borders, United States seaports receive no

23 Federal funds for security infrastructure.

24 (9) Current inspection levels of containerized

25 cargo are insufficient to counter potential security
4

•S 1214 RS

1 risks. Technology is currently not adequately de2 ployed to allow for the non-intrusive inspection of

3 containerized cargo. Additional promising technology

4 is in the process of being developed that could in5 spect cargo in a non-intrusive and timely fashion.

6 (10) The burgeoning cruise ship industry poses

7 a special risk from a security perspective. The large

8 number of United States citizens sailing on inter9 national cruises provides an attractive target to ter10 rorists seeking to cause mass casualties. Approxi11 mately 80 percent of cruise line passengers are

12 United States citizens and 20 percent are aliens. Ap13 proximately 92 percent of crewmembers are aliens.

14 (11) Effective physical security and access con15 trol in seaports is fundamental to deterring and pre16 venting potential threats to seaport operations, cargo

17 shipments for smuggling or theft or other cargo

18 crimes.

19 (12) Securing entry points, open storage areas,

20 and warehouses throughout the seaport, controlling

21 the movements of trucks transporting cargo through

22 the seaport, and examining or inspecting containers,

23 warehouses, and ships at berth or in the harbor are

24 all important requirements that should be imple25 mented.
5

•S 1214 RS

1 (13) Identification procedures for arriving

2 workers and deterring and preventing internal con3 spiracies are increasingly important.

4 (14) On April 27, 1999, the President estab5 lished the Interagency Commission on Crime and

6 Security in United States Seaports to undertake a

7 comprehensive study of the nature and extent of the

8 problem of crime in our seaports, as well as the ways

9 in which governments at all levels are responding.

10 (15) The Commission has issued findings that

11 indicate the following:

12 (A) Frequent crimes in seaports include

13 drug smuggling, illegal car exports, fraud (in14 cluding Intellectual Property Rights and other

15 trade violations), and cargo theft.

16 (B) Data about crime in seaports have

17 been very difficult to collect.

18 (C) Internal conspiracies are an issue at

19 many seaports, and contribute to Federal

20 crime.

21 (D) Intelligence and information sharing

22 among law enforcement agencies needs to be

23 improved and coordinated at many seaports.

24 (E) Many seaports do not have any idea

25 about the threats they face from crime, ter-
6

•S 1214 RS

1 rorism, and other security-related activities be2 cause of a lack of credible threat information.

3 (F) A lack of minimum physical, proce4 dural, and personnel security standards at sea5 ports and at terminals, warehouses, trucking

6 firms, and related facilities leaves many sea7 ports and seaport users vulnerable to theft, pil8 ferage, and unauthorized access by criminals.

9 (G) Access to seaports and operations

10 within seaports is often uncontrolled.

11 (H) Coordination and cooperation between

12 law enforcement agencies in the field is often

13 fragmented.

14 (I) Meetings between law enforcement per15 sonnel, carriers, and seaport authorities regard16 ing security are not being held routinely in the

17 seaports. These meetings could increase coordi18 nation and cooperation at the local level.

19 (J) Security-related equipment such as

20 small boats, cameras, and vessel tracking de21 vices is lacking at many seaports.

22 (K) Detection equipment such as large23 scale x-ray machines is lacking at many high24 risk seaports.
7

•S 1214 RS

1 (L) A lack of timely, accurate, and com2 plete manifest (including in-bond) and trade

3 (entry, importer, etc.) data negatively impacts

4 law enforcement’s ability to function effectively.

5 (M) Criminal organizations are exploiting

6 weak security in seaports and related inter7 modal connections to commit a wide range of

8 cargo crimes. Levels of containerized cargo vol9 umes are forecasted to increase significantly,

10 which will create more opportunities for crime

11 while lowering the statistical risk of detection

12 and interdiction.

13 (16) United States seaports are international

14 boundaries that—

15 (A) are particularly vulnerable to threats

16 of drug smuggling, illegal alien smuggling,

17 cargo theft, illegal entry of cargo and contra18 band;

19 (B) may present weaknesses in the ability

20 of the United States to realize its national secu21 rity objectives; and

22 (C) may serve as a vector for terrorist at23 tacks aimed at the population of the United

24 States.
8

•S 1214 RS

1 (17) It is in the best interests of the United

2 States—

3 (A) to be mindful that United States sea4 ports are international ports of entry and that

5 the primary obligation for the security of inter6 national ports of entry lies with the Federal

7 government;

8 (B) to be mindful of the need for the free

9 flow of interstate and foreign commerce and the

10 need to ensure the efficient movement of cargo

11 in interstate and foreign commerce;

12 (C) to increase United States seaport secu13 rity by establishing a better method of commu14 nication amongst law enforcement officials re15 sponsible for seaport boundary, security, and

16 trade issues;

17 (D) to formulate guidance for the review of

18 physical seaport security, recognizing the dif19 ferent character and nature of United States

20 seaports;

21 (E) to provide financial incentives to help

22 the States and private sector to increase phys23 ical security of United States seaports;

24 (F) to invest in long-term technology to fa25 cilitate the private sector development of tech-
9

•S 1214 RS

1 nology that will assist in the non-intrusive time2 ly detection of crime or potential crime;

3 (G) to harmonize data collection on sea4 port-related and other cargo theft, in order to

5 address areas of potential threat to safety and

6 security;

7 (H) to create shared inspection facilities to

8 help facilitate the timely and efficient inspection

9 of people and cargo in United States seaports;

10 and

11 (I) to improve Customs reporting proce12 dures to enhance the potential detection of

13 crime in advance of arrival or departure of car14 goes.

15 SEC. 3. PORT SECURITY TASK FORCE.

16 (a) ESTABLISHMENT.—The Secretary shall establish

17 a Port Security Task Force—

18 (1) to help implement the provisions of this Act;

19 (2) to help coordinate programs to enhance the

20 security and safety of United States seaports;

21 (3) to help provide long-term solutions for sea22 port security issues;

23 (4) to help coordinate the security operations of

24 local seaport security committees;
10

•S 1214 RS

1 (5) to help ensure that the public and local sea2 port security committees are kept informed about

3 seaport security enhancement developments;

4 (6) to help provide guidance for the conditions

5 under which loan guarantees and grants are made;

6 and

7 (7) to consult with the Coast Guard and the

8 Maritime Administration in establishing port secu9 rity program guidance.

10 (b) MEMBERSHIP.—

11 (1) IN GENERAL.—The Task Force shall in12 clude representatives of the Coast Guard and the

13 Maritime Administration.

14 (2) OTHER AGENCIES.—The Secretary shall

15 consult with the Secretary of the Treasury to invite

16 the participation of the United States Customs Serv17 ice, and may invite the participation of other depart18 ments and agencies of the United States with an in19 terest in port security, port security-related matters,

20 and border protection issues.

21 (3) REQUIRED PRIVATE SECTOR REPRESENTA22 TIVES.—The Task Force shall include representa23 tives, appointed by the Secretary of—

24 (A) port authorities;

25 (B) coastwise management units;
11

•S 1214 RS

1 (C) longshore labor organizations;

2 (D) ocean shipping companies;

3 (E) trucking companies;

4 (F) railroad companies;

5 (G) transportation workers;

6 (H) ocean shippers;

7 (I) freight forwarding companies; and

8 (J) other representatives whose participa9 tion the Secretary deems beneficial.

10 (c) SUBCOMMITTEES.—The Task Force may estab11 lish subcommittees to facilitate consideration of specific

12 issues, including port security border protection and mari13 time domain awareness issues.

14 (d) LAW ENFORCEMENT SUBCOMMITTEE.—The

15 Task Force shall establish a subcommittee comprised of

16 Federal, State, and local government law enforcement

17 agencies to address port security issues, including resource

18 commitments and law enforcement sensitive matters.

19 (e) EXEMPTION FROM FACA.—The Federal Advi20 sory Committee Act (5 U.S.C. App.) does not apply to the

21 Task Force.

22 (f) ACCEPTANCE OF CONTRIBUTIONS; JOINT VEN23 TURE ARRANGEMENTS.—In carrying out its responsibil24 ities under this Act, the Task Force, or a member organi25 zation or representative acting with the Task Force’s con-
12

•S 1214 RS

1 sent, may accept contributions of funds, material, services,

2 and the use of personnel and facilities from public and

3 private entities by contract or other arrangement if the

4 confidentiality of security-sensitive information is main5 tained and access to such information is limited appro6 priately.

7 (g) FUNDING.—Of the amounts made available under

8 section 17(b) there shall be made available to the Sec9 retary of Transportation for activities of the Task Force

10 $1,000,000 for each of fiscal years 2003 through 2006

11 without further appropriation.

12 SEC. 4. ESTABLISHMENT OF LOCAL PORT SECURITY COM13 MITTEES.

14 (a) IN GENERAL.—The United States Coast Guard

15 shall establish seaport security committees—

16 (1) to utilize the information made available

17 under this Act;

18 (2) to define the physical boundaries within

19 which to conduct vulnerability assessments in rec20 ognition of the unique characteristics of each port;

21 (3) to review port security vulnerability assess22 ments promulgated under section 5;

23 (4) to implement the guidance promulgated

24 under section 7;
13

•S 1214 RS

1 (5) to help coordinate planning and other nec2 essary security activities by conducting meetings no

3 less frequently than 4 times each year, to dissemi4 nate information that will facilitate law enforcement

5 activities; and

6 (6) to conduct an exercise at least once every

7 3 years to verify the effectiveness of each port au8 thority and marine terminal security plan.

9 (b) MEMBERSHIP.—In establishing those committees,

10 the United States Coast Guard may utilize or augment

11 any existing harbor safety committee or seaport readiness

12 committee, but the membership of the seaport security

13 committee shall include representatives of—

14 (1) the port authority;

15 (2) Federal, State and local government;

16 (3) Federal, State, and local government law

17 enforcement agencies;

18 (4) labor organizations and transportation

19 workers;

20 (5) local management organizations; and

21 (6) private sector representatives whose inclu22 sion is deemed beneficial by the Captain-of-the-Port.

23 (c) CHAIRMAN.—The local seaport security com24 mittee shall be chaired by the Captain-of-the-Port.
14

•S 1214 RS

1 (d) EXEMPTION FROM FACA.—The Federal Advi2 sory Committee Act (5 U.S.C. App.) does not apply to a

3 local seaport security committee.

4 (e) ACCEPTANCE OF CONTRIBUTIONS; JOINT VEN5 TURE ARRANGEMENTS.—In carrying out its responsibil6 ities under this Act, a local seaport security committee,

7 or a member organization or representative acting with

8 the committee’s consent, may accept contributions of

9 funds, material, services, and the use of personnel and fa10 cilities from public and private entities by contract or

11 other arrangement if the confidentiality of security-sen12 sitive information is maintained and access to such infor13 mation is limited appropriately.

14 (f) FUNDING.—Of the amounts made available under

15 section 17(b) there shall be made available to the Com16 mandant $3,000,000 for each of fiscal years 2003 through

17 2006 without further appropriation to carry out this sec18 tion, such sums to remain available until expended.

19 SEC. 5. COAST GUARD PORT SECURITY VULNERABILITY AS20 SESSMENTS.

21 (a) IN GENERAL.—The Commandant of the Coast

22 Guard, in consultation with the Defense Threat Reduction

23 Agency, the Center for Civil Force Protection, and other

24 appropriate public and private sector organizations, shall
15

•S 1214 RS

1 develop standards and procedures for conducting seaport

2 security vulnerability assessments.

3 (b) INITIAL SCHEDULE.—The Coast Guard, in co4 operation with local port authority committee officials with

5 proper security clearances, shall complete no fewer than

6 10 seaport security vulnerability assessments annually,

7 until it has completed such assessments for the 50 ports

8 determined by the Commandant to be the most strategic

9 or economically strategic ports in the United States. If a

10 seaport security vulnerability assessment has been con11 ducted within 5 years by or on behalf of a port authority

12 or marine terminal authority, and the Commandant deter13 mines that it was conducted in a manner that is generally

14 consistent with the standards and procedures developed

15 under subsection (a), the Commandant may accept that

16 assessment rather than conducting another seaport secu17 rity vulnerability assessment for that port.

18 (c) REVIEW BY PORT AUTHORITY.—The Com19 mandant shall make the seaport security vulnerability as20 sessment for a seaport available for review and comment

21 by officials of the port authority with proper security

22 clearances or marine terminal operator representatives

23 with proper security clearances.

24 (d) MAPS AND CHARTS.—
16

•S 1214 RS

1 (1) COLLECTION AND DISTRIBUTION.—The

2 Commandant and the Administrator shall, working

3 through local seaport security committees where

4 appropriate—

5 (A) collect, store securely, and maintain

6 maps and charts of all United States seaports

7 that clearly indicate the location of infrastruc8 ture and overt-security equipment;

9 (B) make those maps and charts available

10 upon request, on a secure and confidential

11 basis, to—

12 (i) the Maritime Administration;

13 (ii) the United States Coast Guard;

14 (iii) the United States Customs Serv15 ice;

16 (iv) the Department of Defense;

17 (v) the Federal Bureau of Investiga18 tion; and

19 (vi) the Immigration and Naturaliza20 tion Service.

21 (2) OTHER AGENCIES.—The Coast Guard and

22 the Maritime Administration shall establish a proc23 ess for providing relevant maps and charts collected

24 under paragraph (1), and other relevant material,

25 available, on a secure and confidential basis, to ap-
17

•S 1214 RS

1 propriate Federal, State, and local government agen2 cies, and seaport authorities, for the purpose of ob3 taining the comments of those agencies before com4 pleting a seaport vulnerability assessment for each

5 such seaport.

6 (3) SECURE STORAGE AND LIMITED ACCESS.—

7 The Coast Guard and the Maritime Administration

8 shall establish procedures that ensure that maps,

9 charts, and other material made available to Fed10 eral, State, and local government agencies, seaport

11 authorities, and local seaport security committees

12 are maintained in a secure and confidential manner

13 and that access thereto is limited appropriately.

14 (e) ANNUAL STATUS REPORT TO CONGRESS.—Not15 withstanding section 7(c) of the Ports and Waterways

16 Safety Act (33 U.S.C. 1226(c)), the Coast Guard and the

17 Maritime Administration shall report annually to the Sen18 ate Committee on Commerce, Science, and Transportation

19 and the House of Representatives Committee on Trans20 portation and Infrastructure on the status of seaport secu21 rity in a form that does not compromise, or present a

22 threat to the disclosure of security-sensitive information

23 about, the seaport security vulnerability assessments con24 ducted under this Act. The report may include rec25 ommendations for further improvements in seaport secu-
18

•S 1214 RS

1 rity measures and for any additional enforcement meas2 ures necessary to ensure compliance with the seaport secu3 rity plan requirements of this Act.

4 (f) FUNDING.—Of the amounts made available under

5 section 17(b) there shall be made available to the Com6 mandant $10,000,000 for each of fiscal years 2003

7 through 2006 without further appropriation to carry out

8 this section, such sums to remain available until expended.

9 SEC. 6. MARITIME TRANSPORTATION SECURITY PRO10 GRAMS.

11 (a) IN GENERAL.—The Commandant and the Ad12 ministrator shall jointly initiate a rulemaking proceeding

13 to prescribe regulations to protect the public from threats

14 originating from vessels in maritime transportation origi15 nating or terminating in a United States seaport against

16 an act of crime or terrorism. In prescribing a regulation

17 under this subsection, the Commandant and the Adminis18 trator shall—

19 (1) consult with the Secretary of the Treasury,

20 the Attorney General, the heads of other depart21 ments, agencies, and instrumentalities of the United

22 States Government, State and local authorities, and

23 the Task Force; and

24 (2) consider whether a proposed regulation is

25 consistent with—
19

•S 1214 RS

1 (A) protecting the public; and

2 (B) the public interest in promoting mari3 time transportation and commerce.

4 (b) SECURITY PROGRAMS.—

5 (1) PROGRAM TO BE ESTABLISHED.—Each port

6 authority and marine terminal authority for an area

7 designated under section 4(a)(2) at which a port se8 curity vulnerability assessment has been conducted

9 under this Act shall establish a maritime transpor10 tation security program within 1 year after the as11 sessment is completed.

12 (2) GENERAL REQUIREMENTS.—A security pro13 gram established under paragraph (1) shall provide

14 a law enforcement program and capability at that

15 seaport that is adequate to ensure the safety of the

16 public from threats of crime and terrorism.

17 (3) SPECIFIC REQUIREMENTS.—A security pro18 gram established under paragraph (1) shall be

19 linked to the Captain-of-the-Port authorities for

20 maritime trade and shall include—

21 (A) provisions for establishing and main22 taining physical security for seaport areas and

23 approaches;

24 (B) provisions for establishing and main25 taining procedural security for processing pas-
20

•S 1214 RS

1 sengers, cargo, and crewmembers, and per2 sonnel security for the employment of individ3 uals and service providers;

4 (C) a credentialing process to limit access

5 to sensitive areas;

6 (D) a process to restrict vehicular access

7 to seaport areas and facilities;

8 (E) restrictions on carrying firearms and

9 other prohibited weapons; and

10 (F) a private security officer certification

11 program, or provisions for using the services of

12 qualified State, local, and private law enforce13 ment personnel.

14 (c) INCORPORATION OF MARINE TERMINAL OPERA15 TOR’S PROGRAM.—Notwithstanding the requirements of

16 subsection (b)(3), the Captain-of-the-Port may approve a

17 security program of a port authority, or an amendment

18 to an existing program, that incorporates a security pro19 gram of a marine terminal operator tenant with access to

20 a secured area of the seaport, if the program or amend21 ment incorporates—

22 (1) the measures the tenant will use, within the

23 tenant’s leased areas or areas designated for the ten24 ant’s exclusive use under an agreement with the port

25 authority, to carry out the security requirements im-
21

•S 1214 RS

1 posed by the Commandant and the Administration

2 on the port authority; and

3 (2) the methods the port authority will use to

4 monitor and audit the tenant’s compliance with the

5 security requirements.

6 (d) INCORPORATION OF OTHER SECURITY PRO7 GRAMS AND LAWS.—Notwithstanding the requirements of

8 subsection (b)(3), the Captain-of-the-Port may approve a

9 security program of a port authority, or an existing pro10 gram, that incorporates a State or local security program,

11 policy, or law. In reviewing any such program, the Cap12 tain-of-the-Port shall—

13 (1) endeavor to avoid duplication and to recog14 nize the State or local security program or policy;

15 and

16 (2) ensure that no security program established

17 under subsection (b)(3) conflicts with any applicable

18 provision of State or local law.

19 (e) REVIEW AND APPROVAL OF SECURITY PRO20 GRAMS.—

21 (1) IN GENERAL.—The Captain-of-the-Port

22 shall review and approve or disapprove each security

23 program established under subsection (b). If the

24 Captain-of-the-Port disapproves a security program,

25 then—
22

•S 1214 RS

1 (A) the Captain-of-the-Port shall notify the

2 port authority or marine terminal authority in

3 writing of the reasons for the disapproval; and

4 (B) the port authority or marine terminal

5 authority shall submit a revised security plan

6 within 6 months after receiving the notification

7 of disapproval.

8 (f) 5-YEAR REVIEWS.—Whenever appropriate, but in

9 no event less frequently than once every 5 years, each port

10 authority or marine terminal operator required to develop

11 a security program under this section shall review its pro12 gram, make such revisions to the program as are nec13 essary or appropriate, and submit the results of its review

14 and the revised program to the Captain-of-the-Port.

15 (g) NO EROSION OF OTHER AUTHORITY.—Nothing

16 in this section precludes any agency, instrumentality, or

17 department of the United States from exercising, or limits

18 its authority to exercise, any other statutory or regulatory

19 authority to initiate or enforce seaport security standards.

20 SEC. 7. SECURITY PROGRAM GUIDANCE.

21 (a) IN GENERAL.—The Commandant and the Ad22 ministrator, in consultation with the Task Force, shall de23 velop voluntary security guidance that will serve as a

24 benchmark for the review of security plans that—
23

•S 1214 RS

1 (1) are linked to the Captain-of-the-Port au2 thorities for maritime trade;

3 (2) include a set of recommended ‘‘best prac4 tices’’ guidelines for the use of maritime terminal

5 operators; and

6 (3) take into account the different nature and

7 characteristics of United States seaports and the

8 need to promote commerce.

9 (b) REVISION.—The Commandant and the Maritime

10 Administrator shall review the guidelines developed under

11 subsection (a) not less frequently than every 5 years and

12 revise them as necessary.

13 (c) AREAS COVERED.—The guidance developed under

14 subsection (a) shall include the following areas:

15 (1) GENERAL SECURITY.—The establishment of

16 practices for physical security of seaport areas and

17 approaches, procedural security for processing pas18 sengers, cargo, and crewmembers, and personnel se19 curity for employment of individuals and service pro20 viders.

21 (2) ACCESS TO SENSITIVE AREAS.—The use of

22 a credentials process, administered by public or pri23 vate sector security services, to limit access to sen24 sitive areas.
24

•S 1214 RS

1 (3) VEHICULAR ACCESS.—The use of restric2 tions on vehicular access to seaport areas and facili3 ties, including requirements that seaport authorities

4 and primary users of seaports implement procedures

5 that achieve appropriate levels of control of vehicular

6 access and accountability for enforcement of con7 trolled access by vehicles.

8 (4) FIREARMS.—Restrictions on carrying fire9 arms.

10 (5) CERTIFICATION OF PRIVATE SECURITY OF11 FICERS.—A private security officer certification pro12 gram to improve the professionalism of seaport secu13 rity officers.

14 SEC. 8. INTERNATIONAL SEAPORT SECURITY.

15 (a) COAST GUARD; INTERNATIONAL APPLICATION.—

16 The Commandant shall make every effort to have the

17 guidance developed under section 7(a) adopted by appro18 priate international organizations as an international

19 standard and shall, acting through appropriate officers of

20 the United States Government, seek to encourage the de21 velopment and adoption of seaport security standards

22 under international agreements in other countries where

23 adoption of the same or similar standards might be appro24 priate.
25

•S 1214 RS

1 (b) MARITIME ADMINISTRATION; PORT ACCREDITA2 TION PROGRAM.—The Administrator shall make every ef3 fort to have the guidance developed under section 7(a)

4 adopted by appropriate organizations as security stand5 ards and shall encourage the establishment of a program

6 for the private sector accreditation of seaports that imple7 ment security standards that are consistent with the guid8 ance.

9 (c) INTERNATIONAL PORT SECURITY IMPROVEMENT

10 ACTIVITIES.—

11 (1) IN GENERAL.—The Administrator shall es12 tablish a program to assist foreign seaport operators

13 in identifying port security risks, conducting port se14 curity vulnerability assessments, and implementing

15 port security standards.

16 (2) IDENTIFICATION OF STRATEGIC FOREIGN

17 PORTS.—The Administrator shall work with the Sec18 retary of Defense and the Attorney General to iden19 tify those foreign seaports where inadequate security

20 or a high level of port security vulnerability poses a

21 strategic threat to United States defense interests or

22 may be implicated in criminal activity in the United

23 States.

24 (3) DISSEMINATION OF INFORMATION

25 ABROAD.—The Administrator shall work with the
26

•S 1214 RS

1 Secretary of State to facilitate the dissemination of

2 seaport security program information to port au3 thorities and marine terminal operators in other

4 countries.

5 (d) FUNDING.—Of the amounts made available under

6 section 17(b) there shall be made available to the Adminis7 trator $500,000 for each of fiscal years 2003 through

8 2006 without further appropriation to carry out this sec9 tion, such sums to remain available until expended.

10 SEC. 9. MARITIME SECURITY PROFESSIONAL TRAINING.

11 (a) IN GENERAL.—The Secretary shall establish a

12 program, in consultation with the Federal Law Enforce13 ment Center, the United States Merchant Marine Acad14 emy’s Global Maritime and Transportation School, and

15 the Maritime Security Council, and the International As16 sociation of Airport and Seaport Police, to develop stand17 ards and procedures for training and certification of mari18 time security professionals.

19 (b) ESTABLISHMENT OF SECURITY INSTITUTE.—The

20 Secretary shall establish the Maritime Security Institute

21 at the United States Merchant Marine Academy’s Global

22 Maritime and Transportation School to train and certify

23 maritime security professionals in accordance with inter24 nationally recognized law enforcement standards. Institute

25 instructors shall be knowledgeable about Federal and
27

•S 1214 RS

1 international law enforcement, maritime security, and port

2 and maritime operations.

3 (c) TRAINING AND CERTIFICATION.—The following

4 individuals shall be eligible for training at the Institute:

5 (1) Individuals who are employed, whether in

6 the public or private sector, in maritime law enforce7 ment or security activities.

8 (2) Individuals who are employed, whether in

9 the public or private sector, in planning, executing,

10 or managing security operations—

11 (A) at United States ports;

12 (B) on passenger or cargo vessels with

13 United States citizens as passengers or crew14 members;

15 (C) in foreign ports used by United States16 flagged vessels or by foreign-flagged vessels

17 with United States citizens as passengers or

18 crewmembers.

19 (d) PROGRAM ELEMENTS.—The program established

20 by the Secretary under subsection (a) shall include the fol21 lowing elements:

22 (1) The development of standards and proce23 dures for certifying maritime security professionals.

24 (2) The training and certification of maritime

25 security professionals in accordance with inter-
28

•S 1214 RS

1 nationally accepted law enforcement and security

2 guidelines, policies, and procedures.

3 (3) The training of students and instructors in

4 all aspects of prevention, detection, investigation,

5 and reporting of criminal activities in the inter6 national maritime environment.

7 (4) The provision of offsite training and certifi8 cation courses and certified personnel at United

9 States and foreign ports used by United States10 flagged vessels, or by foreign-flagged vessels with

11 United States citizens as passengers or crew12 members, to develop and enhance security awareness

13 and practices.

14 (e) ANNUAL REPORT.—The Institute shall transmit

15 an annual report to the Senate Committee on Commerce,

16 Science, and Transportation and the House of Represent17 atives Committee on Transportation and Infrastructure on

18 the expenditure of appropriated funds and the training

19 and other activities of the Institute.

20 (f) FUNDING.—Of the amounts made available under

21 section 17(b), there shall be made available to the Sec22 retary, without further appropriation, to carry out this

23 section—

24 (1) $2,500,000 for each of fiscal years 2003

25 and 2004, and
29

•S 1214 RS

1 (2) $1,000,000 for each of fiscal years 2005

2 and 2006,

3 such amounts to remain available until expended.

4 SEC. 10. PORT SECURITY INFRASTRUCTURE IMPROVE5 MENT.

6 (a) IN GENERAL.—Title XI of the Merchant Marine

7 Act, 1936 (46 U.S.C. App. 1271 et seq.) is amended by

8 adding at the end thereof the following:

9 ‘‘SEC. 1113. LOAN GUARANTEES FOR PORT SECURITY IN10 FRASTRUCTURE IMPROVEMENTS.

11 ‘‘(a) IN GENERAL.—The Secretary, under section

12 1103(a) and subject to the terms the Secretary shall pre13 scribe and after consultation with the United States Coast

14 Guard, the United States Customs Service, and the Port

15 Security Task Force established under section 3 of the

16 Port and Maritime Security Act of 2001, may guarantee

17 or make a commitment to guarantee the payment of the

18 principal of, and the interest on, an obligation for seaport

19 security infrastructure improvements for an eligible

20 project at any United States seaport involved in inter21 national trade.

22 ‘‘(b) LIMITATIONS.—Guarantees or commitments to

23 guarantee under this section are subject to the extent ap24 plicable to all the laws, requirements, regulations, and pro-
30

•S 1214 RS

1 cedures that apply to guarantees or commitments to guar2 antee made under this title.

3 ‘‘(c) TRANSFER OF FUNDS.—The Secretary may ac4 cept the transfer of funds from any other department,

5 agency, or instrumentality of the United States Govern6 ment and may use those funds to cover the cost (as de7 fined in section 502 of the Federal Credit Reform Act of

8 1990 (2 U.S.C. 61a)) of making guarantees or commit9 ments to guarantee loans entered into under this section.

10 ‘‘(d) ELIGIBLE PROJECTS.—A project is eligible for

11 a loan guarantee or commitment under subsection (a) if

12 it is for the construction or acquisition of—

13 ‘‘(1) equipment or facilities to be used for sea14 port security monitoring and recording;

15 ‘‘(2) security gates and fencing;

16 ‘‘(3) security-related lighting systems;

17 ‘‘(4) remote surveillance systems;

18 ‘‘(5) concealed video systems; or

19 ‘‘(6) other security infrastructure or equipment

20 that contributes to the overall security of passengers,

21 cargo, or crewmembers.

22 ‘‘SEC. 1114. GRANTS.

23 ‘‘(a) FINANCIAL ASSISTANCE.—The Secretary may

24 provide financial assistance for eligible projects (within the

25 meaning of section 1113(d)).
31

•S 1214 RS

1 ‘‘(b) MATCHING REQUIREMENTS.—

2 ‘‘(1) 75-PERCENT FEDERAL FUNDING.—Except

3 as provided in paragraph (2), Federal funds for any

4 eligible project under this section shall not exceed 75

5 percent of the total cost of such project. In calcu6 lating that percentage, the non-Federal share of

7 project costs may be provided by in-kind contribu8 tions and other noncash support.

9 ‘‘(2) EXCEPTIONS.—

10 ‘‘(A) SMALL PROJECTS.—There are no

11 matching requirements for grants under sub12 section (a) for projects costing not more than

13 $25,000.

14 ‘‘(B) HIGHER LEVEL OF SUPPORT RE15 QUIRED.—If the Secretary determines that a

16 proposed project merits support and cannot be

17 undertaken without a higher rate of Federal

18 support, then the Secretary may approve grants

19 under this section with a matching requirement

20 other than that specified in paragraph (1).

21 ‘‘(c) ALLOCATION.—The Secretary shall ensure that

22 financial assistance provided under subsection (a) during

23 a fiscal year is distributed so that funds are awarded for

24 eligible projects that address emerging priorities or threats
32

•S 1214 RS

1 identified by the Task Force under section 5 of the Port

2 and Maritime Security Act of 2001.

3 ‘‘(d) PROJECT PROPOSALS.—Each proposal for a

4 grant under this section shall include the following:

5 ‘‘(1) The name of the individual or entity re6 sponsible for conducting the project.

7 ‘‘(2) A succinct statement of the purposes of

8 the project.

9 ‘‘(3) A description of the qualifications of the

10 individuals who will conduct the project.

11 ‘‘(4) An estimate of the funds and time re12 quired to complete the project.

13 ‘‘(5) Evidence of support of the project by ap14 propriate representatives of States or territories of

15 the United States or other government jurisdictions

16 in which the project will be conducted.

17 ‘‘(6) Information regarding the source and

18 amount of matching funding available to the appli19 cant, as appropriate.

20 ‘‘(7) Any other information the Secretary con21 siders to be necessary for evaluating the eligibility of

22 the project for funding under this title.’’.

23 (b) ANNUAL ACCOUNTING.—The Secretary of Trans24 portation shall submit an annual summary of loan guaran25 tees and commitments to make loan guarantees under sec-
33

•S 1214 RS

1 tion 1113 of the Merchant Marine Act, 1936, and grants

2 made under section 1114 of that Act, to the Task Force.

3 The Task Force shall make that information available to

4 the public and to local seaport security committees

5 through appropriate media of communication, including

6 the Internet.

7 (c) FUNDING.—Of amounts made available under

8 section 17(b), there shall be made available to the Sec9 retary of Transportation without further appropriation—

10 (1) $8,000,000 for each of the fiscal years

11 2003, 2004, 2005, and 2006 as guaranteed loan

12 costs (as defined in section 502(5) of the Federal

13 Credit Reform Act of 1990; 2 U.S.C. 661a(5)),

14 (2) $10,000,000 for each of such fiscal years

15 for grants under section 1114 of the Merchant Ma16 rine Act, 1936, and

17 (3) $2,000,000 for each such fiscal year to

18 cover administrative expenses related to loan guar19 antees and grants,

20 such amounts to remain available until expended.

21 (d) AUTHORIZATION OF APPROPRIATIONS.—In addi22 tion to the amounts made available under subsection

23 (c)(2), there are authorized to be appropriated to the Sec24 retary of Transportation for grants under section 1114
34

•S 1214 RS

1 of the Merchant Marine Act, 1936, $10,000,000 for each

2 of the fiscal years 2003, 2004, 2005, and 2006.

3 SEC. 11. SCREENING AND DETECTION EQUIPMENT.

4 (a) FUNDING.—Of amounts made available under

5 section 17(b), there shall be made available to the Com6 missioner of Customs without further appropriation for

7 the purchase of non-intrusive screening and detection

8 equipment for use at United States seaports—

9 (1) $15,000,000 for fiscal year 2003,

10 (2) $16,000,000 for fiscal year 2004,

11 (3) $18,000,000 for fiscal year 2005, and

12 (4) $19,000,000 for fiscal year 2006,

13 such sums to remain available until expended.

14 (b) ACCOUNTING.—The Commissioner shall submit a

15 report for each such fiscal year to the Senate Committee

16 on Commerce, Science, and Transportation and the House

17 of Representatives Committee on Transportation and In18 frastructure on the expenditure of funds appropriated pur19 suant to this section.

20 SEC. 12. ANNUAL REPORT ON MARITIME SECURITY AND

21 TERRORISM.

22 Section 905 of the International Maritime and Port

23 Security Act (46 U.S.C. App. 1802) is amended by adding

24 at the end thereof the following: ‘‘Beginning with the first

25 report submitted under this section after the date of en-
35

•S 1214 RS

1 actment of the Port and Maritime Security Act of 2001,

2 the Secretary shall include a description of activities un3 dertaken under that Act and an analysis of the effect of

4 those activities on seaport security against acts of ter5 rorism.’’.

6 SEC. 13. REVISION OF PORT SECURITY PLANNING GUIDE.

7 The Secretary of Transportation, acting through the

8 Maritime Administration and after consultation with the

9 Task Force and the United States Coast Guard, shall pub10 lish a revised version of the document entitled ‘‘Port Secu11 rity: A National Planning Guide’’, incorporating the guid12 ance promulgated under section 7, within 3 years after

13 the date of enactment of this Act, and make that docu14 ment available on the Internet.

15 SEC. 14. SECRETARY OF TRANSPORTATION TO COORDI16 NATE PORT-RELATED CRIME DATA COLLEC17 TION.

18 (a) IN GENERAL.—The Secretary of Transportation

19 shall—

20 (1) require, to the extent feasible, United States

21 government agencies with significant regulatory or

22 law enforcement responsibilities at United States

23 seaports to modify their information databases to

24 ensure the collection and retrievability of data relat25 ing to crime at or affecting such seaports;
36

•S 1214 RS

1 (2) evaluate the feasibility of capturing data on

2 cargo theft offenses (including such offenses occur3 ring outside such seaports) that would indicate the

4 port of entry, the port where the shipment origi5 nated, where the theft occurred, and maintaining the

6 confidentiality of shipper and carrier unless volun7 tarily disclosed, and, if feasible, implement its cap8 ture;

9 (3) if feasible, and in conjunction with the Task

10 Force, establish an outreach program to work with

11 State law enforcement officials to harmonize the re12 porting of data on cargo theft among the States and

13 with the United States government’s reports;

14 (4) if the harmonization of the reporting of

15 such data among the States is not feasible, evaluate

16 the feasibility of using private data bases on cargo

17 theft and disseminating confidential cargo theft in18 formation to local port security committees for fur19 ther dissemination to appropriate law enforcement

20 officials; and

21 (5) in conjunction with the Task Force, estab22 lish an outreach program to work with local port se23 curity committees to disseminate cargo theft infor24 mation to appropriate law enforcement officials.
37

•S 1214 RS

1 (b) REPORT ON FEASIBILITY.—The Secretary of

2 Transportation shall report to the Senate Committee on

3 Commerce, Science, and Transportation and the House of

4 Representatives Committee on Transportation and Infra5 structure within 1 year after the date of enactment of this

6 Act on the feasibility of each activity authorized by sub7 section (a).

8 (c) INTERSTATE OR FOREIGN SHIPMENTS BY CAR9 RIER.—

10 (1) IN GENERAL.—Section 659 of title 18,

11 United States Code, is amended—

12 (A) by striking ‘‘with intent to convert to

13 his own use’’ each place it appears;

14 (B) by inserting ‘‘trailer,’’ after

15 ‘‘motortruck,’’ in the first undesignated para16 graph;

17 (C) by inserting ‘‘air cargo container,’’

18 after ‘‘aircraft,’’ in the first undesignated para19 graph;

20 (D) by inserting a comma and ‘‘or from

21 any intermodal container, trailer, container

22 freight station, warehouse, or freight consolida23 tion facility,’’ after ‘‘air navigation facility’’ in

24 the first undesignated paragraph;
38

•S 1214 RS

1 (E) by striking ‘‘one year’’ and inserting

2 ‘‘3 years’’ in the fifth undesignated paragraph;

3 (F) by adding at the end of the fifth un4 designated paragraph the following: ‘‘Notwith5 standing the preceding sentence, the court may,

6 upon motion of the Attorney General, reduce

7 any penalty imposed under this paragraph with

8 respect to any defendant who provides informa9 tion leading to the arrest and conviction of any

10 dealer or wholesaler of stolen goods or chattels

11 moving as or which are a part of or which con12 stitute an interstate or foreign shipment.’’;

13 (G) by inserting after the first sentence in

14 the penultimate undesignated paragraph the

15 following: ‘‘For purposes of this section, goods

16 and chattel shall be construed to be moving as

17 an interstate or foreign shipment at all points

18 between the point of origin and the final des19 tination (as evidenced by the waybill or other

20 shipping document of the shipment), regardless

21 of any temporary stop while awaiting trans22 shipment or otherwise.’’; and

23 (H) by adding at the end the following:

24 ‘‘It shall be an affirmative defense (on which the de25 fendant bears the burden of persuasion by a preponder-
39

•S 1214 RS

1 ance of the evidence) to an offense under this section that

2 the defendant bought, received, or possessed the goods,

3 chattels, money, or baggage at issue with the sole intent

4 to report the matter to an appropriate law enforcement

5 officer or to the owner of the goods, chattels, money, or

6 baggage.’’.

7 (2) FEDERAL SENTENCING GUIDELINES.—Pur8 suant to section 994 of title 28, United States Code,

9 the United States Sentencing Commission shall

10 amend the Federal sentencing guidelines to provide

11 a sentencing enhancement of not less than 2 levels

12 for any offense under section 659 of title 18, United

13 States Code, as amended by this section.

14 (3) REPORT TO CONGRESS.—The Attorney

15 General shall annually submit to Congress a report,

16 which shall include an evaluation of law enforcement

17 activities relating to the investigation and prosecu18 tion of offenses under section 659 of title 18, United

19 States Code.

20 (d) FUNDING.—Out of amounts made available under

21 section 17(b), there shall be made available to the Sec22 retary of Transportation, without further appropriation,

23 $1,000,000 for each of fiscal years 2003, 2004, 2005, and

24 2006, to modify existing data bases to capture data on

25 cargo theft offenses and to make grants to States to har-
40

•S 1214 RS

1 monize data on cargo theft, such sums to remain available

2 until expended.

3 SEC. 15. SHARED DOCKSIDE INSPECTION FACILITIES.

4 (a) IN GENERAL.—The Secretary of the Treasury,

5 the Secretary of Agriculture, the Secretary of Transpor6 tation, and the Attorney General shall work with each

7 other, the Task Force, and the States to establish shared

8 dockside inspection facilities at United States seaports for

9 Federal and State agencies.

10 (b) FUNDING.—Of the amounts made available under

11 section 17(b), there shall be made available to the Sec12 retary of the Transportation, without further appropria13 tion, $1,000,000 for each of fiscal years 2003, 2004,

14 2005, and 2006, such sums to remain available until ex15 pended, to establish shared dockside inspection facilities

16 at United States seaports in consultation with the Sec17 retary of the Treasury, the Secretary of Agriculture, and

18 the Attorney General.

19 SEC. 16. IMPROVED CUSTOMS REPORTING PROCEDURES.

20 In an manner that is consistent with the promulga21 tion of the manifesting and in-bond regulations and with

22 the phased-in implementation of those regulations in the

23 development of the Automated Commercial Environment

24 Project, the United States Customs Service shall improve

25 reporting of imports at United States seaports—
41

•S 1214 RS

1 (1) by promulgating regulations to require, not2 withstanding the second sentence of section 411(b)

3 of the Tariff Act of 1930 (19 U.S.C. 1411(b)), all

4 ocean manifests to be transmitted in electronic form

5 to the Service in sufficient time for the information

6 to be used effectively by the Service;

7 (2) by promulgating regulations to require, not8 withstanding sections 552, 553, and 1641 of such

9 Act (19 U.S.C. 1552, 1553, and 1641), all entries

10 of goods, including in-bond entries, to provide the

11 same information required for entries of goods re12 leased into the commerce of the United States to the

13 Service before the goods are released for shipment

14 from the seaport of first arrival; and

15 (3) by distributing the information described in

16 paragraphs (1) and (2) on a real-time basis to any

17 Federal, State, or local government agency that has

18 a regulatory or law-enforcement interest in the

19 goods.

20 SEC. 17. 4-YEAR REAUTHORIZATION OF TONNAGE DUTIES.

21 (a) IN GENERAL.—

22 (1) EXTENSION OF DUTIES.—Section 36 of the

23 Act of August 5, 1909 (36 Stat. 111; 46 U.S.C.

24 App. 121) is amended by striking ‘‘through 2002,’’

25 each place it appears and inserting ‘‘through 2006,’’.
42

•S 1214 RS

1 (2) CONFORMING AMENDMENT.—The Act enti2 tled ‘‘An Act concerning tonnage duties on vessels

3 entering otherwise than by sea’’, approved March 8,

4 1910 (36 Stat 234; 46 U.S.C. App. 132) is amended

5 by striking ‘‘through 2002,’’ and inserting ‘‘through

6 2006,’’.

7 (b) AVAILABILITY OF FUNDS.—Amounts deposited in

8 the general fund of the Treasury as receipts of tonnage

9 charges collected as a result of the amendments made by

10 subsection (a) shall be made available in each of fiscal

11 years 2003 through 2006 to carry out this Act, as pro12 vided in sections 3(g), 4(f), 5(f), 8(d), 9(f), 10(c), 11(a),

13 14(d), and 15(b).

14 SEC. 18. DEFINITIONS.

15 In this Act:

16 (1) ADMINISTRATOR.—The term ‘‘Adminis17 trator’’ means the Administrator of the Maritime

18 Administration.

19 (2) CAPTAIN-OF-THE-PORT.—The term ‘‘Cap20 tain-of-the-Port’’ means the United States Coast

21 Guard’s Captain-of-the-Port.

22 (3) COMMANDANT.—The term ‘‘Commandant’’

23 means the Commandant of the United States Coast

24 Guard.
43

•S 1214 RS

1 (4) SECRETARY.—Except as otherwise provided,

2 the term ‘‘Secretary’’ means the Secretary of Trans3 portation.

4 (5) TASK FORCE.—The term ‘‘Task Force’’

5 means the Port Security Task Force established

6 under section 3.
Calendar No. 161

107TH CONGRESS

1ST SESSION S. 1214

[Report No. 107–64]

A BILL

To amend the Merchant Marine Act, 1936, to establish a program to ensure greater security for

United States seaports, and for other purposes.

SEPTEMBER 14, 2001

Reported without amendment