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[House Report 110-687]
[From the U.S. Government Publishing Office]

110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-687

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

 
CATCHING OPERATIONAL VULNERABILITIES BY ENSURING RANDOM TESTING ACT OF 
                       2008 (COVERT ACT OF 2008)

                                _______
                                

  June 5, 2008.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Thompson of Mississippi, from the Committee on Homeland Security, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 5909]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Homeland Security, to whom was referred the 
bill (H.R. 5909) to amend the Aviation and Transportation 
Security Act to prohibit advance notice to certain individuals, 
including security screeners, of covert testing of security 
screening procedures for the purpose of enhancing 
transportation security at airports, and for other purposes, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     3
Background and Need for Legislation..............................     4
Hearings.........................................................     4
Committee Consideration..........................................     5
Committee Votes..................................................     5
Committee Oversight Findings.....................................     5
New Budget Authority, Entitlement Authority, and Tax Expenditures     6
Congressional Budget Office Estimate.............................     6
Statement of General Performance Goals and Objectives............     6
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     7
Federal Mandates Statement.......................................     7
Advisory Committee Statement.....................................     7
Constitutional Authority Statement...............................     7
Applicability to Legislative Branch..............................     7
Section-by-Section Analysis of the Legislation...................     8
Changes in Existing Law Made by the Bill, as Reported............     9

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Catching Operational Vulnerabilities 
by Ensuring Random Testing Act of 2008'' or the ``COVERT Act of 2008''.

SEC. 2. PROHIBITION OF ADVANCE NOTICE OF COVERT TESTING TO SECURITY 
                    SCREENERS.

  Section 111 of the Aviation and Transportation Security Act (Public 
Law 107-71; 49 U.S.C. 44935 note) is amended--
          (1) by striking the section enumerator and heading and 
        inserting the following:

``SEC. 111. TRAINING, EMPLOYMENT, AND TESTING OF SECURITY SCREENING 
                    PERSONNEL.''; AND

          (2) by adding at the end the following:
  ``(e) Prohibition of Advance Notice to Security Screeners of Covert 
Testing and Evaluation.--
          ``(1) In general.--The Secretary of Homeland Security shall 
        ensure that information concerning a covert test of a 
        transportation security system to be conducted by a covert 
        testing office, the Inspector General of the Department of 
        Homeland Security, or the Government Accountability Office is 
        not provided to any individual prior to the completion of the 
        test.
          ``(2) Exceptions.--Notwithstanding paragraph (1)--
                  ``(A) an individual may provide information 
                concerning a covert test of a transportation security 
                system to employees, officers, and contractors of the 
                Federal Government (including military personnel); 
                employees and officers of State and local governments; 
                and law enforcement officials, who are authorized to 
                receive or directed to be provided such information by 
                the Assistant Secretary of Homeland Security 
                (Transportation Security Administration), the Inspector 
                General of the Department of Homeland Security, or the 
                Comptroller General of the United States, as the case 
                may be; and
                  ``(B) for the purpose of ensuring the security of any 
                individual in the vicinity of a site where a covert 
                test of a transportation security system is being 
                conducted, an individual conducting the test may 
                disclose his or her status as an individual conducting 
                the test to any appropriate individual if a security 
                screener or other individual who is not a covered 
                employee identifies the individual conducting the test 
                as a potential threat.
          ``(3) Special rules for the transportation security 
        administration.--
                  ``(A) Monitoring and security of testing personnel.--
                The head of each covert testing office shall ensure 
                that a person or group of persons conducting a covert 
                test of a transportation security system for the covert 
                testing office is accompanied at the site of the test 
                by a cover team comprised of one or more employees of 
                the covert testing office for the purpose of monitoring 
                the test and confirming the identity of personnel 
                involved in the test under subparagraph (B).
                  ``(B) Responsibility of cover team.--Under this 
                paragraph, a cover team for a covert test of a 
                transportation security system shall--
                          ``(i) monitor the test; and
                          ``(ii) for the purpose of ensuring the 
                        security of any individual in the vicinity of a 
                        site where the test is being conducted, 
                        confirm, notwithstanding paragraph (1), the 
                        identity of any individual conducting the test 
                        to any appropriate individual if a security 
                        screener or other individual who is not a 
                        covered employee identifies the individual 
                        conducting the test as a potential threat.
                  ``(C) Aviation screening.--Notwithstanding 
                subparagraph (A), the Transportation Security 
                Administration is not required to have a cover team 
                present during a test of the screening of persons, 
                carry-on items, or checked baggage at an aviation 
                security checkpoint at or serving an airport if the 
                test--
                          ``(i) is approved by the Federal Security 
                        Director for such airport; and
                          ``(ii) is carried out under an aviation 
                        screening assessment program of the Department 
                        of Homeland Security.
                  ``(D) Use of other personnel.--The Transportation 
                Security Administration may use employees, officers, 
                and contractors of the Federal Government (including 
                military personnel) and employees and officers of State 
                and local governments to conduct covert tests.
          ``(4) Impact study and report on covert testing procedures.--
                  ``(A) Impact study.--The Secretary of Homeland 
                Security shall conduct a study of the impact of the 
                implementation of this subsection on the Department of 
                Homeland Security's efforts to improve transportation 
                security.
                  ``(B) Requirements.--The study under subparagraph (A) 
                shall include an assessment of--
                          ``(i) the impact of the implementation of 
                        this subsection on personnel of the Department 
                        of Homeland Security;
                          ``(ii) the impact of such implementation on 
                        information sharing within the Department;
                          ``(iii) best practices for integrating the 
                        topic of covert testing into existing training 
                        and testing programs for personnel of the 
                        Department; and
                          ``(iv) the effectiveness of covert testing as 
                        a method to improve security.
                  ``(C) Report.--Not later than 270 days after the date 
                of the enactment of this subsection, the Secretary 
                shall submit to the Committee on Homeland Security of 
                the House of Representatives and the Committee on 
                Homeland Security and Governmental Affairs of the 
                Senate a report that contains--
                          ``(i) the results of the study under 
                        subparagraph (A);
                          ``(ii) recommendations for changes to the 
                        training of personnel of the Department that 
                        are necessary to ensure compliance with the 
                        requirements of this subsection; and
                          ``(iii) recommendations to improve the 
                        effectiveness of the implementation of this 
                        subsection.
          ``(5) Definitions.--For purposes of this subsection, the 
        following definitions apply:
                  ``(A) Appropriate individual.--The term `appropriate 
                individual', as used with respect to a covert test of a 
                transportation security system, means any individual 
                that--
                          ``(i) the individual conducting the test 
                        determines needs to know his or her status as 
                        an individual conducting a test under paragraph 
                        (2)(B); or
                          ``(ii) the cover team monitoring the test 
                        under paragraph (3)(B)(i) determines needs to 
                        know the identity of an individual conducting 
                        the test.
                  ``(B) Covered employee.--The term `covered employee' 
                means any individual who receives notice of a covert 
                test before the completion of a test under paragraph 
                (2)(A).
                  ``(C) Covert test.--
                          ``(i) In general.--The term `covert test' 
                        means an exercise or activity conducted by a 
                        covert testing office, the Inspector General of 
                        the Department of Homeland Security, or the 
                        Government Accountability Office to 
                        intentionally test, compromise, or circumvent 
                        transportation security systems to identify 
                        vulnerabilities in such systems.
                          ``(ii) Limitation.--Notwithstanding clause 
                        (i), the term `covert test' does not mean an 
                        exercise or activity by an employee or 
                        contractor of the Transportation Security 
                        Administration to test or assess compliance 
                        with regulations under title 49 of the Code of 
                        Federal Regulations.
                  ``(D) Covert testing office.--The term `covert 
                testing office' means any office of the Transportation 
                Security Administration designated by the Assistant 
                Secretary of Homeland Security (Transportation Security 
                Administration) to conduct covert tests of 
                transportation security systems.
                  ``(E) Employee of a covert testing office.--The term 
                `employee of a covert testing office' means an 
                individual who is an employee of a covert testing 
                office or a contractor or an employee of a contractor 
                of a covert testing office.''.

                          Purpose and Summary

    The purpose of H.R. 5909 is to amend the Aviation and 
Transportation Security Act to prohibit advance notice to 
certain individuals, including security screeners, of covert 
testing of security screening procedures for the purpose of 
enhancing transportation security at airports, and for other 
purposes.

                  Background and Need for Legislation

    There have been a number of incidents reported where it 
appears that covert tests of transportation security systems 
may have been compromised by individuals providing advance 
notice of the covert tests to transportation security officers. 
Specifically, the Department of Homeland's Office of Inspector 
General (DHS OIG) found that between August 2003 and May 2004, 
Transportation Security Administration (TSA) officials at San 
Francisco International Airport compromised DHS OIG covert 
testing efforts by tracking testers throughout the airport via 
surveillance cameras and notifying screening personnel in 
advance of the testers arriving at security checkpoints. Then 
Transportation Security Officers at the Jackson-Evers 
International Airport in Jackson, MS reported that they 
received advance notice of covert tests conducted by TSA's 
Office of Inspection on February 12, 2004. In addition, the 
Committee on Homeland Security conducted an investigation into 
these matters and discovered a third incident involving an 
April 2006 e-mail from TSA's Office of Security Operations to 
all Federal Security Directors and other TSA airport officials 
informing them of testing at airports throughout the country.
    Additionally, the Committee on Homeland Security held a 
hearing entitled ``Cover Blown--Did TSA Tip-Off Airport 
Screeners about Covert Testing?'' on November 14, 2007.
    This bill was introduced to legally prohibit individuals 
from providing advance notice of covert tests to security 
screeners or any other individuals without approval from the 
Assistant Secretary of Homeland Security (Transportation 
Security Administration), the Inspector General of the 
Department of Homeland Security, or the Comptroller General of 
the United States.

                                Hearings

    On April 19, 2007, the Subcommittee on Transportation 
Security and Infrastructure Protection held a hearing entitled 
``Airport Security: The Necessary Improvements to Secure 
America's Airports.'' The Subcommittee received testimony from 
Hon. Edmund ``Kip'' Hawley, Assistant Secretary, Transportation 
Security Administration, Department of Homeland Security; Ms. 
Lauren Stover, Assistant Aviation Director for Security and 
Communications, Miami-Dade Aviation Department; Mr. Greg 
Principato, President, Airports Council International--North 
America; and Mr. William E. Holden, Senior Vice President of 
Operations, Covenant Homeland Security Solutions.
    On October 16, 2007, the Subcommittee on Transportation 
Security and Infrastructure Protection held a hearing entitled 
``Aviation Security: Are We Truly Protected?'' The Subcommittee 
received testimony from Ms. Cathleen A. Berrick, Director, 
Homeland Security and Justice Issues, Government Accountability 
Office; Hon. Edmund ``Kip'' Hawley, Assistant Secretary, 
Transportation Security Administration, Department of Homeland 
Security; and Mr. Franklin Hatfield, Director, System 
Operations Security Office, Federal Aviation Administration, 
Department of Transportation.
    On November 1, 2007, the Subcommittee on Transportation 
Security and Infrastructure Protection held a hearing entitled 
``Aviation Security Part II: A Frontline Perspective on the 
Need for Enhanced Human Resources and Equipment.'' The 
Subcommittee received testimony from Mr. John Gage, National 
President, American Federation of Government Employees, AFL-
CIO; Ms. Patricia A. Friend, International President, 
Association of Flight Attendants--CWA, AFL-CIO; and Mr. Robert 
Hesselbein, Chairman, National Security Committee, Air Line 
Pilots Association, International.
    On November 14, 2007, the Committee held a hearing entitled 
``Cover Blown--Did TSA Tip Off Airport Screeners about Covert 
Testing?'' The Committee received testimony from Hon. Edmund 
``Kip'' Hawley, Assistant Secretary, Transportation Security 
Administration, Department of Homeland Security; Mr. Gregory 
Kutz, Managing Director, Office of Forensic Audits and Special 
Investigations, Government Accountability Office; Hon. Clark 
Kent Ervin, Director, Homeland Security Program, The Aspen 
Institute.

                        Committee Consideration

    H.R. 5909 was introduced in the House on April 24, 2008, by 
Mrs. Lowey and referred solely to the Committee on Homeland 
Security. Within the Committee, H.R. 5909 was referred to the 
Subcommittee on Transportation Security and Infrastructure 
Protection.
    The Subcommittee on Transportation Security and 
Infrastructure Protection met on Thursday, May 1, 2008, to 
consider H.R. 5909 and adopted H.R. 5909, as amended, by voice 
vote.
    The following amendment was offered:
    An Amendment in the Nature of a Substitute offered by Ms. 
Jackson-Lee (#1); was AGREED TO by voice vote.
    The Chairman discharged the Subcommittee on Transportation 
Security and Infrastructure Protection from further 
consideration of H.R. 5909 on May 20, 2008.
    The Committee on Homeland Security considered H.R. 5909 on 
May 20, 2008, and ordered the measure reported to the House 
with a favorable recommendation, as amended, by unanimous 
consent.
    The following amendment was offered:
    An Amendment in the Nature of a Substitute offered by Mrs. 
Lowey (#1); was AGREED TO by unanimous consent.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto.
    No recorded votes were requested during Committee 
consideration.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has held oversight 
hearings and made findings that are reflected in this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
5909, would result in no new or increased budget authority, 
entitlement authority, or tax expenditures or revenues.

                  Congressional Budget Office Estimate

     The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                                                      June 3, 2008.
Hon. Bennie G. Thompson,
Chairman, Committee on Homeland Security,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5909, the Catching 
Operational Vulnerabilities by Ensuring Random Testing Act of 
2008.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                                   Peter R. Orszag.
    Enclosure.

H.R. 5909--Catching Operational Vulnerabilities by Ensuring Random 
        Testing Act of 2008

    H.R. 5909 would specify certain procedures for the 
Transportation Security Administration (TSA) to follow when 
conducting covert tests of transportation systems and require 
the agency to report on the effect that those procedures have 
on the agency's efforts to improve transportation security.
    Based on information from TSA, CBO estimates that 
implementing H.R. 5909 would have no significant impact on the 
federal budget. According to TSA, enacting H.R. 5909 would not 
significantly affect the agency's costs to conduct covert 
tests, and CBO estimates that the cost of meeting the bill's 
reporting requirements would be negligible. Any such costs 
would be subject to the availability of appropriated funds. 
H.R. 5909 would not affect direct spending or receipts.
    H.R. 5909 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Megan Carroll. 
This estimate was approved by Peter H. Fontaine, Assistant 
Director for Budget Analysis.

         Statement of General Performance Goals and Objectives

     Pursuant to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, H.R. 5909 contains the following 
general performance goals, and objectives, including outcome 
related goals and objectives authorized.
    The Catching Operational Vulnerabilities by Ensuring Random 
Testing Act of 2008 prohibits the advance notice of covert 
tests of transportation security systems to ensure that covert 
tests of these systems are not compromised. This bill 
establishes a procedure by which the Transportation Security 
Administration (TSA), the Department of Homeland Security's 
Inspector General, and the Comptroller of the United States can 
provide limited advance notice of covert tests to certain 
personnel before the tests occur. This established procedure 
will add increased integrity, uniformity, and accountability to 
covert testing without hampering this vital and important 
function in protecting America's transportation systems. 
Further, by creating a flexible process by which the Assistant 
Secretary for the Transportation Security Administration and 
those within the TSA can continue to conduct localized tests of 
security screeners and transportation security systems, this 
bill will not reduce or diminish the efforts of TSA's Federal 
Security Directors with respect to their individual areas and 
facilities of responsibility. Finally, by preparing and 
providing an Impact Study and Report to Congress on the impact 
of training and best practices to train the workforce, Congress 
can conduct adequate oversight on this issue.

   Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

     In compliance with rule XXI of the Rules of the House of 
Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 1, which grants Congress the power 
to provide for the common Defense of the United States.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

Section 1. Short title

    This section designates the short title of H.R. 5909 as the 
``Catching Operational Vulnerabilities by Ensuring Random 
Testing Act of 2008'' or the ``COVERT Act of 2008''.

Section 2. Prohibition of advance notice of covert testing to security 
        screeners

    This section amends section 111 of the Aviation and 
Transportation Security Act (Pub. L. 107-71), to prohibit 
advance notice to individuals, including security screeners, of 
covert testing of transportation security screening procedures.
    Section 111 prohibits any individual participating in 
covert testing to provide advance notice or information 
concerning covert tests, prior to the test's completion, to any 
individual. Additionally, this section provides the Assistant 
Secretary of the Department of Homeland Security 
(Transportation Security Administration), the Inspector General 
of the Department of Homeland Security, and Comptroller General 
of the United States the authority to provide advance notice of 
covert tests to Federal Officers and Law Enforcement Officials. 
This section also allows individuals conducting covert tests to 
inform others they are conducting a covert test in instances 
where they are identified as a potential threat for purposes of 
ensuring the security of individuals in the vicinity.
    Additionally, this section establishes a cover team to 
monitor testing personnel for the purpose of ensuring the 
security of transportation security screeners, the traveling 
public, individuals conducting the test, or any others within 
the vicinity of the test. Each head of a covert testing office 
shall ensure that a cover team, comprised of one or more 
individuals, is present during a covert test in order to 
monitor testing and confirm the identity of those conducting 
the test. The Transportation Security Administration (TSA) is 
not required to provide a cover team during tests to screen 
persons, carry-on items, or checked baggage at an aviation 
security checkpoint, or a checkpoint that is serving an 
airport, if the test is approved by a Federal Security Director 
and carried out under an aviation screening assessment program 
of the Department of Homeland Security. The Committee does not 
intend the cover team requirement to apply to TSA's locally 
based aviation covert testing program managed by Federal 
Security Directors at their respective airports. In addition, 
due to the limited availability of testing personnel for TSA's 
locally based aviation covert testing program, this section 
allows the TSA to use employees, officers, and contractors of 
the Federal Government, including military personnel, and 
employees and officers of state and local governments to 
conduct covert tests.
    Further, this section requires the Secretary to conduct an 
impact study. Specifically, the study shall include a summary 
of best practices on how to best integrate covert testing into 
other training and testing programs; recommendations on the 
implementation and execution of this section; and an assessment 
on the results of covert testing for improving security. A 
report on the study and its results, including recommendations 
required for personnel training, is due to the named committees 
of jurisdiction.
    This section also establishes the definition of terms used 
within this bill.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, 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 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

      SECTION 111 OF THE AVIATION AND TRANSPORTATION SECURITY ACT

[SEC. 111. TRAINING AND EMPLOYMENT OF SECURITY SCREENING PERSONNEL.]

SEC. 111. TRAINING, EMPLOYMENT, AND TESTING OF SECURITY SCREENING 
                    PERSONNEL.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Prohibition of Advance Notice to Security Screeners of 
Covert Testing and Evaluation.--
          (1) In general.--The Secretary of Homeland Security 
        shall ensure that information concerning a covert test 
        of a transportation security system to be conducted by 
        a covert testing office, the Inspector General of the 
        Department of Homeland Security, or the Government 
        Accountability Office is not provided to any individual 
        prior to the completion of the test.
          (2) Exceptions.--Notwithstanding paragraph (1)--
                  (A) an individual may provide information 
                concerning a covert test of a transportation 
                security system to employees, officers, and 
                contractors of the Federal Government 
                (including military personnel); employees and 
                officers of State and local governments; and 
                law enforcement officials, who are authorized 
                to receive or directed to be provided such 
                information by the Assistant Secretary of 
                Homeland Security (Transportation Security 
                Administration), the Inspector General of the 
                Department of Homeland Security, or the 
                Comptroller General of the United States, as 
                the case may be; and
                  (B) for the purpose of ensuring the security 
                of any individual in the vicinity of a site 
                where a covert test of a transportation 
                security system is being conducted, an 
                individual conducting the test may disclose his 
                or her status as an individual conducting the 
                test to any appropriate individual if a 
                security screener or other individual who is 
                not a covered employee identifies the 
                individual conducting the test as a potential 
                threat.
          (3) Special rules for the transportation security 
        administration.--
                  (A) Monitoring and security of testing 
                personnel.--The head of each covert testing 
                office shall ensure that a person or group of 
                persons conducting a covert test of a 
                transportation security system for the covert 
                testing office is accompanied at the site of 
                the test by a cover team comprised of one or 
                more employees of the covert testing office for 
                the purpose of monitoring the test and 
                confirming the identity of personnel involved 
                in the test under subparagraph (B).
                  (B) Responsibility of cover team.--Under this 
                paragraph, a cover team for a covert test of a 
                transportation security system shall--
                          (i) monitor the test; and
                          (ii) for the purpose of ensuring the 
                        security of any individual in the 
                        vicinity of a site where the test is 
                        being conducted, confirm, 
                        notwithstanding paragraph (1), the 
                        identity of any individual conducting 
                        the test to any appropriate individual 
                        if a security screener or other 
                        individual who is not a covered 
                        employee identifies the individual 
                        conducting the test as a potential 
                        threat.
                  (C) Aviation screening.--Notwithstanding 
                subparagraph (A), the Transportation Security 
                Administration is not required to have a cover 
                team present during a test of the screening of 
                persons, carry-on items, or checked baggage at 
                an aviation security checkpoint at or serving 
                an airport if the test--
                          (i) is approved by the Federal 
                        Security Director for such airport; and
                          (ii) is carried out under an aviation 
                        screening assessment program of the 
                        Department of Homeland Security.
                  (D) Use of other personnel.--The 
                Transportation Security Administration may use 
                employees, officers, and contractors of the 
                Federal Government (including military 
                personnel) and employees and officers of State 
                and local governments to conduct covert tests.
          (4) Impact study and report on covert testing 
        procedures.--
                  (A) Impact study.--The Secretary of Homeland 
                Security shall conduct a study of the impact of 
                the implementation of this subsection on the 
                Department of Homeland Security's efforts to 
                improve transportation security.
                  (B) Requirements.--The study under 
                subparagraph (A) shall include an assessment 
                of--
                          (i) the impact of the implementation 
                        of this subsection on personnel of the 
                        Department of Homeland Security;
                          (ii) the impact of such 
                        implementation on information sharing 
                        within the Department;
                          (iii) best practices for integrating 
                        the topic of covert testing into 
                        existing training and testing programs 
                        for personnel of the Department; and
                          (iv) the effectiveness of covert 
                        testing as a method to improve 
                        security.
                  (C) Report.--Not later than 270 days after 
                the date of the enactment of this subsection, 
                the Secretary shall submit to the Committee on 
                Homeland Security of the House of 
                Representatives and the Committee on Homeland 
                Security and Governmental Affairs of the Senate 
                a report that contains--
                          (i) the results of the study under 
                        subparagraph (A);
                          (ii) recommendations for changes to 
                        the training of personnel of the 
                        Department that are necessary to ensure 
                        compliance with the requirements of 
                        this subsection; and
                          (iii) recommendations to improve the 
                        effectiveness of the implementation of 
                        this subsection.
          (5) Definitions.--For purposes of this subsection, 
        the following definitions apply:
                  (A) Appropriate individual.--The term 
                ``appropriate individual'', as used with 
                respect to a covert test of a transportation 
                security system, means any individual that--
                          (i) the individual conducting the 
                        test determines needs to know his or 
                        her status as an individual conducting 
                        a test under paragraph (2)(B); or
                          (ii) the cover team monitoring the 
                        test under paragraph (3)(B)(i) 
                        determines needs to know the identity 
                        of an individual conducting the test.
                  (B) Covered employee.--The term ``covered 
                employee'' means any individual who receives 
                notice of a covert test before the completion 
                of a test under paragraph (2)(A).
                  (C) Covert test.--
                          (i) In general.--The term ``covert 
                        test'' means an exercise or activity 
                        conducted by a covert testing office, 
                        the Inspector General of the Department 
                        of Homeland Security, or the Government 
                        Accountability Office to intentionally 
                        test, compromise, or circumvent 
                        transportation security systems to 
                        identify vulnerabilities in such 
                        systems.
                          (ii) Limitation.--Notwithstanding 
                        clause (i), the term ``covert test'' 
                        does not mean an exercise or activity 
                        by an employee or contractor of the 
                        Transportation Security Administration 
                        to test or assess compliance with 
                        regulations under title 49 of the Code 
                        of Federal Regulations.
                  (D) Covert testing office.--The term ``covert 
                testing office'' means any office of the 
                Transportation Security Administration 
                designated by the Assistant Secretary of 
                Homeland Security (Transportation Security 
                Administration) to conduct covert tests of 
                transportation security systems.
                  (E) Employee of a covert testing office.--The 
                term ``employee of a covert testing office'' 
                means an individual who is an employee of a 
                covert testing office or a contractor or an 
                employee of a contractor of a covert testing 
                office.

                                  
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