```

[House Report 112-521]
[From the U.S. Government Publishing Office]

112th Congress  }                                            {   Report
  2d Session    }        HOUSE OF REPRESENTATIVES            {  112-521
=======================================================================
 
  SECURING MARITIME ACTIVITIES THROUGH RISK-BASED TARGETING FOR PORT 
                              SECURITY ACT 

                                _______
                                

 June 12, 2012.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. King of New York, from the Committee on Homeland Security, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 4251]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security, to whom was referred 
the bill (H.R. 4251) to authorize, enhance, and reform certain 
port security programs through increased efficiency and risk-
based coordination within the Department of Homeland Security, 
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..............................................    12
Background and Need for Legislation..............................    12
Hearings.........................................................    12
Committee Consideration..........................................    13
Committee Votes..................................................    14
Committee Oversight Findings.....................................    14
New Budget Authority, Entitlement Authority, and Tax Expenditures    14
Congressional Budget Office Estimate.............................    14
Statement of General Performance Goals and Objectives............    17
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................    17
Federal Mandates Statement.......................................    17
Preemption Clarification.........................................    18
Advisory Committee Statement.....................................    18
Applicability to Legislative Branch..............................    18
Section-by-Section Analysis of the Legislation...................    18
Changes in Existing Law Made by the Bill, as Reported............    24
Additional Views.................................................    36

    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 ``Securing Maritime Activities through 
Risk-based Targeting for Port Security Act'' or the ``SMART Port 
Security Act''.

SEC. 2. TABLE OF CONTENTS.

  The table of contents for this Act is the following:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definitions.

    TITLE I--DEPARTMENT OF HOMELAND SECURITY PORT SECURITY PROGRAMS

Sec. 101. Updates of maritime operations coordination plan.
Sec. 102. U.S. Customs and Border Protection Office of Air and Marine 
Asset Deployment.
Sec. 103. Cost-benefit analysis of co-locating operational entities.
Sec. 104. Study of maritime security redundancies.
Sec. 105. Acquisition and strategic sourcing of marine and aviation 
assets.
Sec. 106. Port security grant program management.
Sec. 107. Port security grant funding for mandated security personnel.
Sec. 108. Interagency operational centers for port security.
Sec. 109. Report on DHS aviation assets.
Sec. 110. Small vessel threat analysis.
Sec. 111. U.S. Customs and Border Protection workforce plan.
Sec. 112. Integrated cross-border maritime operations between the 
United States and Canada.
Sec. 113. Training and certification of training for port security.
Sec. 114. Northern border unmanned aerial vehicle pilot project.
Sec. 115. Recognition of port security assessments conducted by other 
entities.
Sec. 116. Use of port security grant funds for replacement of security 
equipment or facilities.

                TITLE II--MARITIME SUPPLY CHAIN SECURITY

Sec. 201. Strategic plan to enhance the security of the international 
supply chain.
Sec. 202. Customs-Trade Partnership Against Terrorism.
Sec. 203. Recognition of other countries' trusted shipper programs.
Sec. 204. Pilot program for inclusion of non-asset based third party 
logistics providers in the Customs-Trade Partnership Against Terrorism.
Sec. 205. Transportation Worker Identification Credential process 
reform.
Sec. 206. Expiration of certain transportation worker identification 
credentials.
Sec. 207. Securing the Transportation Worker Identification Credential 
against use by unauthorized aliens.
Sec. 208. Report on Federal transportation security credentialing 
programs.

SEC. 3. DEFINITIONS.

  In this Act:
          (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' has the meaning given 
        such term in section 2 of the Homeland Security Act of 2002 (6 
        U.S.C. 101).
          (2) Department.--The term ``Department'' means the Department 
        of Homeland Security.
          (3) Function.--The term ``function'' includes authorities, 
        powers, rights, privileges, immunities, programs, projects, 
        activities, duties, and responsibilities.
          (4) Local government.--The term ``local government'' means--
                  (A) a county, municipality, city, town, township, 
                local public authority, school district, special 
                district, intrastate district, council of governments 
                (regardless of whether the council of governments is 
                incorporated as a nonprofit corporation under State 
                law), regional or interstate government entity, or 
                agency or instrumentality of a local government;
                  (B) an Indian tribe or authorized tribal 
                organization, or in Alaska a Native village or Alaska 
                Regional Native Corporation; and
                  (C) a rural community, unincorporated town or 
                village, or other public entity.
          (5) Personnel.--The term ``personnel'' means officers and 
        employees.
          (6) Secretary.--The term ``Secretary'' means the Secretary of 
        Homeland Security.
          (7) State.--The term ``State'' means any State of the United 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the United States Virgin Islands, Guam, American Samoa, 
        the Commonwealth of the Northern Mariana Islands, and any 
        possession of the United States.
          (8) Terrorism.--The term ``terrorism'' has the meaning given 
        such term in section 2 of the Homeland Security Act of 2002 (6 
        U.S.C. 101).
          (9) United states.--The term ``United States'', when used in 
        a geographic sense, means any State of the United States, the 
        District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, any possession of the United States, 
        and any waters within the jurisdiction of the United States.

    TITLE I--DEPARTMENT OF HOMELAND SECURITY PORT SECURITY PROGRAMS

SEC. 101. UPDATES OF MARITIME OPERATIONS COORDINATION PLAN.

  (a) In General.--Not later than July 1, 2014, the Secretary shall 
submit to the appropriate congressional committees a maritime 
operations coordination plan for the coordination and cooperation of 
maritime operations undertaken by the agencies within the Department. 
Such plan shall update the maritime operations coordination plan 
released by the Department in July 2011, and shall address the 
following:
          (1) Coordination of planning, integration of maritime 
        operations, and development of joint situational awareness of 
        any office or agency of the Department with responsibility for 
        maritime homeland security missions.
          (2) Maintaining effective information sharing and, as 
        appropriate, intelligence integration, with Federal, State, and 
        local officials and the private sector, regarding threats to 
        maritime security.
          (3) Leveraging existing departmental coordination mechanisms, 
        including the Interagency Operational Centers, as authorized 
        under section 70107A of title 46, United States Code, the U.S. 
        Customs and Border Protection Air and Marine Operations Center, 
        the U.S. Customs and Border Protection Operational Integration 
        Center, and other regional maritime operational command 
        centers.
          (4) Cooperation and coordination with other agencies of the 
        Federal Government, and State and local agencies, in the 
        maritime environment, in support of maritime homeland security 
        missions.
          (5) Work conducted within the context of other national and 
        Department maritime security strategic guidance.
  (b) Additional Updates.--Not later than July 1, 2019, the Secretary, 
acting through the Department's Office of Operations Coordination and 
Planning, shall submit to the appropriate congressional committees an 
additional update to the maritime operations coordination plan.

SEC. 102. U.S. CUSTOMS AND BORDER PROTECTION OFFICE OF AIR AND MARINE 
                    ASSET DEPLOYMENT.

  (a) In General.--Any new asset deployment by the U.S. Customs and 
Border Protection's Office of Air and Marine, following the date of the 
enactment of this Act, shall, to the greatest extent practicable, occur 
in accordance with a risk-based assessment that considers mission 
needs, performance results, threats, costs, and any other relevant 
factors identified by the Secretary. Specific factors to be included in 
such assessment shall include, at a minimum, the following:
          (1) Mission requirements that prioritize the operational 
        needs of field commanders to secure the United States border 
        and ports.
          (2) Other Department assets available to help address any 
        unmet border and port security mission needs.
          (3) Risk analysis showing positioning of the asset at issue 
        to respond to intelligence on emerging terrorist and other 
        threats.
          (4) Cost-benefit analysis showing the relative ability to use 
        the asset at issue in the most cost-effective way to reduce 
        risk and achieve mission success.
  (b) Considerations.--An assessment required under subsection (a) 
shall consider applicable Federal guidance, standards, and agency 
strategic and performance plans, including the following:
          (1) The most recent Departmental Quadrennial Homeland 
        Security Review, and any follow-up guidance related to such 
        Review.
          (2) The Department's Annual Performance Plans.
          (3) Department policy guiding use of integrated risk 
        management in resource allocation decisions.
          (4) Department and U.S. Customs and Border Protection 
        Strategic Plans and Resource Deployment Plans.
          (5) Applicable aviation guidance from the Department, 
        including the DHS Aviation Concept of Operations.
          (6) Other strategic and acquisition guidance promulgated by 
        the Federal Government as the Secretary determines appropriate.
  (c) Audit and Report.--The Inspector General of the Department shall 
biennially audit the deployment of new assets within U.S. Customs and 
Border Protection's Office of Air and Marine and submit to the 
appropriate congressional committees a report on the compliance of the 
Department with the requirements of this section.

SEC. 103. COST-BENEFIT ANALYSIS OF CO-LOCATING OPERATIONAL ENTITIES.

  (a) In General.--For all locations in which U.S. Customs and Border 
Protection's Office of Air and Marine operates that are within 25 miles 
of locations where any other Department agency also operates air and 
marine assets, the Secretary shall conduct a cost-benefit analysis to 
consider the potential cost of and savings derived from co-locating 
aviation and maritime operational assets of the different agencies of 
the Department. In analyzing the potential cost savings achieved by 
sharing aviation and maritime facilities, the study shall consider at a 
minimum the following factors:
          (1) Potential enhanced cooperation derived from Department 
        personnel being co-located.
          (2) Potential cost of, and savings derived through, shared 
        maintenance and logistics facilities and activities.
          (3) Joint use of base and facility infrastructure, such as 
        runways, hangars, control towers, operations centers, piers and 
        docks, boathouses, and fuel depots.
          (4) Short term moving costs required in order to co-locate 
        facilities.
          (5) Acquisition and infrastructure costs for enlarging 
        current facilities as needed.
  (b) Report.--Not later than one year after the date of the enactment 
of this Act, the Secretary shall submit to the appropriate 
congressional committees a report summarizing the results of the cost-
benefit analysis required under subsection (a) and any planned actions 
based upon such results.

SEC. 104. STUDY OF MARITIME SECURITY REDUNDANCIES.

  The Comptroller General of the United States shall by not later than 
1 year after the date of enactment of this Act--
          (1) conduct a review of port security and maritime law 
        enforcement operations within the Department to identify 
        initiatives and programs with duplicative, overlapping, or 
        redundant goals and activities, including the cost of such 
        duplication; and
          (2) submit to the appropriate congressional committees a 
        report on the findings of the study, including--
                  (A) recommendations for consolidation, elimination, 
                or increased cooperation to reduce unnecessary 
                duplication found in the study; and
                  (B) an analysis of personnel, maintenance, and 
                operational costs related to unnecessarily duplicative, 
                overlapping, or redundant goals and activities found in 
                the study.

SEC. 105. ACQUISITION AND STRATEGIC SOURCING OF MARINE AND AVIATION 
                    ASSETS.

  (a) In General.--Before initiating the acquisition of any new boat or 
aviation asset, the Secretary shall coordinate across the agencies of 
the Department, as appropriate, to--
          (1) identify common mission requirements before initiating a 
        new acquisition program; and
          (2) standardize, to the extent practicable, equipment 
        purchases, streamline the acquisition process, and conduct best 
        practices for strategic sourcing to improve control, reduce 
        cost, and facilitate oversight of asset purchases prior to 
        issuing a Request for Proposal.
  (b) Establishment of Aviation and Maritime Coordination Mechanism.--
Not later than 180 days after the date of the enactment of this Act, 
the Secretary shall establish a coordinating mechanism for aviation and 
maritime issues, including issues related to the acquisition, 
administration, operations, maintenance, and joint management across 
the Department, in order to decrease procurement and operational costs 
and increase efficiencies.
  (c) Special Rule.--For the purposes of this section, a boat shall be 
considered any vessel less than 65 feet in length.

SEC. 106. PORT SECURITY GRANT PROGRAM MANAGEMENT.

  (a) Determination of Applications.--Section 70107(g) of title 46, 
United States Code, is amended
          (1) by striking ``Any entity'' and inserting the following:
          ``(1) In general.--Any entity''; and
          (2) by adding at the end the following:
          ``(2) Determination.--Notwithstanding any other provision of 
        law, the Secretary shall, not later than 60 days after the date 
        on which an applicant submits a complete application for a 
        grant under this section, either approve or disapprove the 
        application.''.
  (b) Administration of Cost Share Determinations.--Section 70107(c)(2) 
of title 46, United States Code, is amended--
          (1) by striking subparagraph (B) and inserting the following:
                  ``(B) Higher level of support required.--If the 
                Secretary or the Secretary's designee determines that a 
                proposed project merits support and cannot be 
                undertaken without a higher rate of Federal support, 
                then the Secretary or the Secretary's designee may 
                approve grants under this section for that project with 
                a matching requirement other than that specified in 
                paragraph (1).''; and
          (2) by inserting after subparagraph (C) the following:
                  ``(D) Cost share determinations.--Notwithstanding any 
                other provision of law, not later than 60 days after 
                the date on which an applicant submits a complete 
                application for a matching requirement waiver under 
                this paragraph the Secretary shall either approve or 
                disapprove the application.''.
  (c) Administration.--Section 70107(i) of title 46, United States 
Code, is amended by adding after paragraph (4) the following:
          ``(5) Release of funds.--To the maximum extent practicable, 
        the Secretary shall complete all necessary programmatic reviews 
        and release grant funds awarded under this section to the 
        appropriate entity not later than 180 days after the date on 
        which an applicant submits a complete application.
          ``(6) Performance period.--The Secretary shall utilize a 
        period of performance of not less than 3 years for expenditure 
        of grant funds awarded under this section.
          ``(7) Extension determinations.--Notwithstanding any other 
        provision of law, not later than 60 days after the date on 
        which an applicant submits a complete application for an 
        extension of the period of performance for a grant, the 
        Secretary shall either approve or disapprove the 
        application.''.

SEC. 107. PORT SECURITY GRANT FUNDING FOR MANDATED SECURITY PERSONNEL.

  Section 70107(b)(1) of title 46, United States Code, is amended by 
striking the period and inserting the following: ``, including overtime 
and backfill costs incurred in support of other expenditures authorized 
under this subsection, except that not more than 50 percent of amounts 
received by a grantee under this section for a fiscal year may be used 
under this paragraph.''.

SEC. 108. INTERAGENCY OPERATIONAL CENTERS FOR PORT SECURITY.

  (a) Participating Personnel.--Section 70107A(b)(1)(B) of title 46, 
United States Code, is amended--
          (1) by inserting ``, not less than part-time representation 
        from U. S. Customs and Border Protection and U.S. Immigration 
        and Customs Enforcement,''after ``the Coast Guard''; and
          (2) by striking ``the United States Customs and Border 
        Protection, the United States Immigration and Customs 
        Enforcement,''.
  (b) Assessment.--Not later than one year after the date of enactment 
of this Act the Secretary (as that term is used in that section) shall 
transmit to the appropriate congressional committees an assessment of--
          (1) interagency operational centers under such section and 
        the implementation of the amendments made by this section;
          (2) participation in such centers and by Federal agencies, 
        State and local law enforcement agencies, port security 
        agencies, and other public and private sector entities, 
        including joint daily operational coordination, training and 
        certifying of non-Federal law enforcement personnel, and joint 
        training exercises;
          (3) deployment of interoperable communications equipment 
        under subsection (e) of such section, including--
                  (A) an assessment of the cost-effectiveness and 
                utility of such equipment for Federal agencies, State 
                and local law enforcement agencies, port security 
                agencies, and other public and private sector entities;
                  (B) data showing which Federal agencies, State and 
                local law enforcement agencies, port security agencies, 
                and other public and private sector entities are 
                utilizing such equipment;
                  (C) an explanation of the process in place to obtain 
                and incorporate feedback from Federal agencies, State 
                and local law enforcement agencies, port security 
                agencies, and other public and private sector entities 
                that are utilizing such equipment in order to better 
                meet their needs; and
                  (D) an updated deployment schedule and life cycle 
                cost estimate for the deployment of such equipment; and
          (4) mission execution and mission support activities of such 
        centers, including daily coordination activities, information 
        sharing, intelligence integration, and operational planning.

SEC. 109. REPORT ON DHS AVIATION ASSETS.

  (a) In General.--Not later than one year after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to the appropriate congressional committees a report that 
analyzes and compares the costs, capabilities, and missions of 
different aviation assets, including unmanned aerial vehicles, utilized 
by the Department to assess the relative costs of unmanned aerial 
vehicles as compared to manned aerial vehicles, and any increased 
operational benefits offered by unmanned aerial vehicles as compared to 
manned aviation assets.
  (b) Required Data.--The report required under subsection (a) shall 
include a detailed assessment of costs for operating each type of asset 
described in such report, including--
          (1) fuel costs;
          (2) crew and staffing costs;
          (3) maintenance costs;
          (4) communication and satellite bandwidth costs;
          (5) costs associated with the acquisition of each type of 
        such asset; and
          (6) any other relevant costs necessary to provide a holistic 
        analysis and to identify potential cost savings.

SEC. 110. SMALL VESSEL THREAT ANALYSIS.

   Not later than 1 year after the date of enactment of this Act, the 
Secretary shall submit to the appropriate congressional committees a 
report analyzing the threat of, vulnerability to, and consequence of an 
act of terrorism using a small vessel to attack United States vessels, 
ports, or maritime interests.

SEC. 111. U.S. CUSTOMS AND BORDER PROTECTION WORKFORCE PLAN.

  (a) In General.--Not later than one year after the date of the 
enactment of this Act, the Secretary shall submit to the appropriate 
congressional committees a plan for optimizing staffing levels for U.S. 
Customs and Border Protection personnel to carry out the mission of the 
Department, including optimal levels of U.S. Customs and Border 
Protection staffing required to conduct all border security functions.
  (b) Consideration of Prior Staffing Resources.--The staffing plan 
required under subsection (a) shall consider previous staffing models 
prepared by the Department and assessments of threat and 
vulnerabilities.

SEC. 112. INTEGRATED CROSS-BORDER MARITIME OPERATIONS BETWEEN THE 
                    UNITED STATES AND CANADA.

  (a) In General.--Subtitle C of title IV of the Homeland Security Act 
of 2002 (6 U.S.C. 201 et seq.) is amended by adding at the end the 
following:

``SEC. 432. INTEGRATED CROSS-BORDER MARITIME OPERATIONS BETWEEN THE 
                    UNITED STATES AND CANADA.

  ``(a) Authorization.--The Secretary is authorized to establish an 
Integrated Cross-Border Maritime Operations Program to coordinate 
maritime security operations between the United States and Canada (in 
this section referred to as the `Program').
  ``(b) Purpose.--The Secretary, acting through the Commandant of the 
Coast Guard, shall administer the Program in a manner that results in a 
cooperative approach between the United States and Canada to strengthen 
border security and detect, prevent, suppress, investigate, and respond 
to terrorism and violations of law related to border security.
  ``(c) Training.--The Secretary, acting through the Commandant of the 
Coast Guard, in consultation with the Secretary of State, may--
          ``(1) establish, as an element of the Program, a training 
        program to create designated maritime law enforcement officers;
          ``(2) conduct training jointly with Canada, including 
        training--
                  ``(A) on the detection and apprehension of suspected 
                terrorists and individuals attempting to unlawfully 
                cross or unlawfully use the international maritime 
                border between the United States and Canada, to enhance 
                border security;
                  ``(B) on the integration, analysis, and dissemination 
                of port security information between the United States 
                and Canada;
                  ``(C) on the respective policy, regulatory, and legal 
                considerations related to the Program;
                  ``(D) on the use of force and maritime security;
                  ``(E) in operational procedures and protection of 
                information and other sensitive information; and
                  ``(F) on preparedness and response to maritime 
                terrorist incidents.
  ``(d) Coordination.--The Secretary, acting through the Commandant of 
the Coast Guard, shall coordinate the Program with other similar border 
security and antiterrorism programs within the Department.
  ``(e) Memoranda of Agreement.--The Secretary may enter into any 
memorandum of agreement necessary to carry out the Program.
  ``(f) Authorization of Appropriations.--To carry out this section 
there is authorized to be appropriated to the Secretary $2,000,000 for 
each of fiscal years 2013 and 2014.''.
  (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by adding at the end of the items relating to such 
subtitle the following new item:

``Sec. 432. Integrated cross-border maritime operations between the 
United States and Canada.''.

SEC. 113. TRAINING AND CERTIFICATION OF TRAINING FOR PORT SECURITY.

  (a) Use of Port Security Grant Funds.--Section 70107(b)(8) of title 
46, United States Code, is amended to read as follows:
          ``(8) The cost of training and certifying a law enforcement 
        officer employed by a law enforcement agency under section 
        70132 of this title.''.
  (b) Matching Requirement.--Section 70107(c)(2)(C) of such title is 
amended to read as follows:
                  ``(C) Training and certification.--There are no 
                matching requirements for grants under subsection (a) 
                to train and certify law enforcement personnel under 
                section 70132 of this title.''.
  (c) Credentialing Standards, Training, and Certification.--Section 
70132 of such title is amended as follows:
          (1) In the section heading, by striking ``for State and local 
        support for the enforcement of security zones for the 
        transportation of especially hazardous cargo'' and inserting 
        ``of maritime law enforcement personnel''.
          (2) By amending subsection (a) to read as follows:
  ``(a) Standards.--The Commandant of the Coast Guard shall establish 
standards for training, qualification, and certification of a law 
enforcement officer employed by a law enforcement agency, to conduct or 
execute, pursuant to a cooperative enforcement agreement, maritime 
security, maritime law enforcement, and maritime surge capacity 
activities.''.
          (3) In subsection (b)(1), by amending subparagraphs (A) and 
        (B) to read as follows:
                  ``(A) after notice and opportunity for public 
                comment, may develop and publish training curricula for 
                the standards established under subsection (a); and
                  ``(B) may--
                          ``(i) test and deliver training for which the 
                        curriculum is developed under subparagraph (A);
                          ``(ii) enter into an agreement under which 
                        any Federal, State, local, tribal, or private 
                        sector entity may test and deliver such 
                        training; and
                          ``(iii) accept the results of training 
                        conducted by any Federal, State, local, tribal, 
                        or private sector entity under such an 
                        agreement.''.
          (4) By striking subsection (b)(2) and inserting the 
        following:
          ``(2) Any training developed under paragraph (1) after the 
        date of enactment of the SMART Port Security Act shall be 
        developed in consultation with the Federal Law Enforcement 
        Training Center.''.
          (5) In subsection (b)(4)--
                  (A) by inserting after ``any moneys,'' the following: 
                ``other than an allocation made under the Dingell-
                Johnson Sport Fish Restoration Act (16 U.S.C. 777 et 
                seq.),''; and
                  (B) by striking ``training of personnel to assist in 
                the enforcement of security zones and limited access 
                areas'' and inserting ``training and certifying 
                personnel under this section''.
          (6) By striking subsection (c) and inserting the following:
  ``(c) Certification of Personnel.--The Commandant of the Coast Guard 
may issue a certificate to law enforcement officer employed by a law 
enforcement agency, who has successfully completed training that the 
Commandant has developed under this section.''.
          (7) By adding at the end the following:
  ``(d) Tactical Training for Law Enforcement Personnel.--The 
Commandant of the Coast Guard may make such training developed under 
this section available to law enforcement officers employed by a law 
enforcement agency, on either a reimbursable or a non-reimbursable 
basis, if the Commandant determines that--
          ``(1) a member of the Coast Guard is unable or unavailable to 
        undertake tactical training the authorization of which had been 
        previously approved, and no other member of the Coast Guard is 
        reasonably available to undertake such training;
          ``(2) the inability or unavailability of Coast Guard 
        personnel to undertake such training creates training capacity 
        within the training program; and
          ``(3) such training, if made available to such law 
        enforcement officers, would contribute to achievement of the 
        purposes of this section.''.
  (d) Conforming Amendment.--Chapter 701 of such title is amended--
          (1) by striking the heading for subchapter II and inserting 
        the following:

    ``Subchapter II--Port Security Training and Certification''; and

          (2) in the table of sections at the beginning of the 
        chapter--
                  (A) by striking the item relating to the heading for 
                subchapter II and inserting the following:

    ``subchapter ii--port security training and certification''; and

                  (B) by striking the item relating to section 70132 
                and inserting the following:

``70132. Credentialing standards, training, and certification of 
maritime law enforcement personnel.''.

  (e) Technical Corrections.--Chapter 701 of such title is amended--
          (1) by moving sections 70122, 70123, 70124, and 70125 so as 
        to appear at the end of subchapter I of such chapter;
          (2) in the table of sections at the beginning of the chapter, 
        in the item relating to section 70107A, by adding at the end a 
        period; and
          (3) by striking the heading for section 70124 and inserting 
        the following:

``Sec. 70124. Regulations''.

SEC. 114. NORTHERN BORDER UNMANNED AERIAL VEHICLE PILOT PROJECT.

  (a) Research and Development.--The Secretary shall research and 
develop technologies to allow routine operation of medium-sized 
unmanned aerial vehicles, including autonomously piloted drones, within 
the national airspace for border and maritime security missions without 
any degradation of existing levels of security-related surveillance or 
of safety for all national airspace system users.
  (b) Pilot Project.--No later than 180 days after the date of 
enactment of this Act, the Secretary shall commence a pilot project in 
segregated airspace along the northern border to conduct experiments 
and collect data in order to accelerate the safe integration of medium-
sized unmanned aircraft systems into the national airspace system.

SEC. 115. RECOGNITION OF PORT SECURITY ASSESSMENTS CONDUCTED BY OTHER 
                    ENTITIES.

  Section 70108 of title 46, United States Code, is amended by adding 
at the end the following new subsection:
  ``(f) Recognition of Assessment Conducted by Other Entities.--
          ``(1) Certification and treatment of assessments.--For the 
        purposes of this section and section 70109, the Secretary may 
        treat an assessment conducted by a foreign government or 
        international organization as an assessment by the Secretary 
        required by subsection (a), if the Secretary certifies that the 
        assessment was conducted in accordance with subsection (b).
          ``(2) Authorization to enter into agreements or 
        arrangements.--The Secretary may enter into an agreement or 
        arrangement with a foreign government or international 
        organization, under which--
                  ``(A) such government or organization may, on behalf 
                of the Secretary, conduct an assessment required under 
                subsection (a), or share with the Secretary information 
                pertaining to such assessments; and
                  ``(B) the Secretary may, on behalf of such foreign 
                government or organization, conduct an assessment 
                described in subsection (a), or share with such foreign 
                government or organization information pertaining to 
                such assessments.
          ``(3) Limitations.--Nothing in this subsection--
                  ``(A) requires the Secretary to recognize an 
                assessment that a foreign government or an 
                international organization conducts pursuant to this 
                subsection; or
                  ``(B) limits the discretion or ability of the 
                Secretary to conduct an assessment under this section.
          ``(4) Notification.--Not later than 30 days before entering 
        into an agreement or arrangement with a foreign government 
        under paragraph (2), the Secretary shall notify the appropriate 
        congressional committees of the proposed terms of such 
        agreement or arrangement.''.

SEC. 116. USE OF PORT SECURITY GRANT FUNDS FOR REPLACEMENT OF SECURITY 
                    EQUIPMENT OR FACILITIES.

  Section 70107(b)(2) of title 46, United States Code, is amended by 
inserting ``(including replacement)'' after ``acquisition''.

                TITLE II--MARITIME SUPPLY CHAIN SECURITY

SEC. 201. STRATEGIC PLAN TO ENHANCE THE SECURITY OF THE INTERNATIONAL 
                    SUPPLY CHAIN.

  Section 201 of the SAFE Port Act (6 U.S.C. 941) is amended--
          (1) by amending subsection (b) to read as follows:
  ``(b) Requirements.--The strategic plan required under subsection 
(a), and any updates to the strategic plan required under subsection 
(g), shall--
          ``(1) identify and address gaps and unnecessary redundancies 
        or overlaps in the roles, responsibilities, or authorities of 
        the agencies responsible for securing the supply chain, 
        including--
                  ``(A) any unnecessary redundancies or overlaps in 
                Federal transportation security credentialing programs; 
                and
                  ``(B) any unnecessary redundancies or overlaps in 
                Federal trusted shipper or trusted trader programs;
          ``(2) review ongoing efforts to align activities throughout 
        the Federal Government to--
                  ``(A) improve coordination among the agencies 
                referred to in paragraph (1);
                  ``(B) facilitate the efficient flow of legitimate 
                commerce;
                  ``(C) enhance the security of the international 
                supply chain; or
                  ``(D) address any gaps or overlaps described in 
                paragraph (1);
          ``(3) identify further regulatory or organizational changes 
        necessary to --
                  ``(A) improve coordination among the agencies 
                referred to in paragraph (1);
                  ``(B) facilitate the efficient flow of legitimate 
                commerce;
                  ``(C) enhance the security of the international 
                supply chain; or
                  ``(D) address any gaps or overlaps described in 
                paragraph (1);
          ``(4) provide measurable goals, including objectives, 
        mechanisms, and a schedule, for furthering the security of 
        commercial operations from point of origin to point of 
        destination;
          ``(5) build on available resources and consider costs and 
        benefits;
          ``(6) recommend additional incentives for voluntary measures 
        taken by private sector entities to enhance supply chain 
        security, including additional incentives for such entities 
        participating in the Customs-Trade Partnership Against 
        Terrorism in accordance with sections 214, 215, and 216;
          ``(7) consider the impact of supply chain security 
        requirements on small- and medium- sized companies;
          ``(8) identify a framework for prudent and measured response 
        in the event of a transportation security incident involving 
        the international supply chain;
          ``(9) provide updated protocols for the expeditious 
        resumption of the flow of trade in accordance with section 202;
          ``(10) review and address implementation of lessons learned 
        from recent exercises conducted under sections 114 and 115, and 
        other international supply chain security, response, or 
        recovery exercises that the Department participates in, as 
        appropriate;
          ``(11) consider the linkages between supply chain security 
        and security programs within other systems of movement, 
        including travel security and terrorism finance programs;
          ``(12) be informed by technologies undergoing research, 
        development, testing, and evaluation by the Department; and
          ``(13) expand upon and relate to existing strategies and 
        plans for securing supply chains, including the National 
        Response Plan, the National Maritime Transportation Security 
        Plan, the National Strategy for Maritime Security, and the 
        eight supporting plans of such National Strategy for Maritime 
        Security, as required by Homeland Security Presidential 
        Directive 13.'';
          (2) in subsection (g)--
                  (A) in the heading for paragraph (2), by striking 
                ``Final'' and inserting ``Updated''; and
                  (B) by adding at the end the following new 
                paragraphs:
          ``(3) Final report.--Not later than two years after the date 
        on which the update of the strategic plan is submitted under 
        paragraph (2), the Secretary shall submit to the appropriate 
        congressional committees a report that contains a further 
        update of the strategic plan.
          ``(4) Implementation plan.--Not later than one year after the 
        date on which the final update of the strategic plan is 
        submitted under paragraph (3), the Secretary shall submit to 
        the appropriate congressional committees an implementation plan 
        for carrying out the strategic plan.''; and
          (3) by adding at the end the following new subsection:
  ``(h) Threat Assessment.--In developing the reports and 
implementation plan required under subsection (g), the Secretary shall 
take into account an assessment of the current threats to the global 
supply chain.''.

SEC. 202. CUSTOMS-TRADE PARTNERSHIP AGAINST TERRORISM.

  (a) Unannounced Inspections.--Section 217(a) of the SAFE Port Act (6 
U.S.C. 967(a)) is amended--
          (1) by striking ``If at any time'' and inserting the 
        following:
          ``(1) Failure to meet requirements.--If at any time''; and
          (2) by inserting after paragraph (1), as redesignated, the 
        following new paragraph:
          ``(2) Unannounced inspections.--The Secretary, acting through 
        the Commissioner, may conduct an unannounced inspection of a C-
        TPAT participant's security measures and supply chain security 
        practices if the Commissioner determines, based on previously 
        identified deficiencies in security measures and supply chain 
        security practices of the C-TPAT participant, that there is a 
        likelihood that such an inspection would assist in confirming 
        the security measures in place and further the validation 
        process.''.
  (b) Private Sector Information Sharing on Security and Terrorism 
Threats.--Subsection (d) of section 216 of the SAFE Port Act (6 U.S.C. 
966) is amended to read as follows:
  ``(d) Private Sector Information Sharing on Security and Terrorism 
Threats.--
          ``(1) In general.--The Secretary shall promote information 
        sharing, as appropriate, between and among the Department and 
        C-TPAT participants and other private entities regarding--
                  ``(A) potential vulnerabilities, attacks, and 
                exploitations of the international supply chain; and
                  ``(B) means and methods of preventing, responding to, 
                and mitigating consequences from the vulnerabilities, 
                attacks, and exploitations described in subparagraph 
                (A).
          ``(2) Contents.--The information sharing required under 
        paragraph (1) may include--
                  ``(A) the creation of classified and unclassified 
                means of accessing information that may be used by 
                appropriately cleared personnel and that will provide, 
                as appropriate, ongoing situational awareness of the 
                security of the international supply chain; and
                  ``(B) the creation of guidelines to establish a 
                mechanism by which owners and operators of 
                international supply chain infrastructure may report 
                actual or potential security breaches.''.

SEC. 203. RECOGNITION OF OTHER COUNTRIES' TRUSTED SHIPPER PROGRAMS.

  Section 218 of the SAFE Port Act (6 U.S.C. 968) is amended by adding 
at the end the following new subsection:
  ``(j) Recognition of Other Countries' Trusted Shipper Programs.--Not 
later than 30 days before signing an arrangement between the United 
States and a foreign government providing for mutual recognition of 
supply chain security practices which might result in the utilization 
of benefits described in section 214, 215, or 216, the Secretary 
shall--
          ``(1) notify the appropriate congressional committees of the 
        proposed terms of such arrangement; and
          ``(2) determine, in consultation with the Commissioner, that 
        the foreign government's supply chain security program provides 
        comparable security as that provided by C-TPAT.''.

SEC. 204. PILOT PROGRAM FOR INCLUSION OF NON-ASSET BASED THIRD PARTY 
                    LOGISTICS PROVIDERS IN THE CUSTOMS-TRADE 
                    PARTNERSHIP AGAINST TERRORISM.

  (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall develop a pilot program to 
determine whether allowing non-asset based third party logistics 
providers that arrange international transportation of freight to 
participate in the Customs-Trade Partnership Against Terrorism program, 
as described in section 211 of the SAFE Port Act (6 U.S.C. 961), would 
enhance port security, combat terrorism, prevent supply chain security 
breaches, or meet the goals of the Customs-Trade Partnership Against 
Terrorism established pursuant to section 211 of the SAFE Port Act (6 
U.S.C. 961).
  (b) Requirements.--
          (1) Voluntary participation.--Participation by non-asset 
        based third party logistics providers that arrange 
        international transportation of freight taking part in the 
        pilot program shall be voluntary.
          (2) Minimum number.--The Secretary shall ensure that not 
        fewer than five non-asset based third party logistics providers 
        that arrange international transportation of freight take part 
        in the pilot program.
          (3) Duration.--The pilot program shall be conducted for a 
        minimum duration of one year.
  (c) Report.--Not later than 180 days after the conclusion of the 
pilot program, the Secretary shall submit to the appropriate 
congressional committees a report on the findings and any 
recommendations of the pilot program concerning the participation in 
the Customs-Trade Partnership Against Terrorism of non-asset based 
third party logistics providers that arrange international 
transportation of freight to combat terrorism and prevent supply chain 
security breaches.

SEC. 205. TRANSPORTATION WORKER IDENTIFICATION CREDENTIAL PROCESS 
                    REFORM.

  (a) Sense of Congress.--To avoid further imposing unnecessary and 
costly regulatory burdens on United States workers and businesses, it 
is the sense of Congress that it is urgent that the Transportation 
Worker Identification Credential (in this section referred to as the 
``TWIC'') application process be reformed by not later than the end of 
2012, when hundreds of thousands of current TWIC holders will begin to 
face the requirement to renew their TWICs.
  (b) TWIC Application Reform.--Not later than 270 days after the date 
of the enactment of this Act, the Secretary shall reform the process 
for the enrollment, activation, issuance, and renewal of a TWIC to 
require, in total, not more than one in-person visit to a designated 
enrollment center except in cases in which there are extenuating 
circumstances, as determined by the Secretary, requiring more than one 
such in-person visit.

SEC. 206. EXPIRATION OF CERTAIN TRANSPORTATION WORKER IDENTIFICATION 
                    CREDENTIALS.

  (a) In General.--A valid Transportation Worker Identification 
Credential required under part 101.514 of title 33, Code of Federal 
Regulations, that was issued before the date of enactment of this Act 
shall not expire before the earlier of--
          (1) the deadline for full implementation of a final rule 
        issued by the Secretary for electronic readers designed to work 
        with Transportation Worker Identification Credentials as an 
        access control and security measure issued pursuant to the 
        advanced notice of proposed rulemaking published March 27, 2009 
        (74 Fed. Reg. 58), as established by the final rule; or
          (2) June 30, 2014.
  (b) Revocation Authority Not Affected.--This section shall not be 
construed to affect the authority of the Secretary to revoke a 
Transportation Worker Identification Credential--
          (1) based on information that the holder is not qualified to 
        hold such credential; or
          (2) if the credential is lost, damaged, or stolen.

SEC. 207. SECURING THE TRANSPORTATION WORKER IDENTIFICATION CREDENTIAL 
                    AGAINST USE BY UNAUTHORIZED ALIENS.

  (a) Process.--
          (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary shall establish a process 
        to ensure, to the maximum extent practicable, that an 
        individual who is not lawfully present in the United States 
        cannot obtain or continue to use a Transportation Worker 
        Identification Credential (in this section referred to as the 
        ``TWIC'').
          (2) Components.--In establishing the process under subsection 
        (a), the Secretary shall--
                  (A) publish a list of documents that will identify 
                non-United States citizen TWIC applicants and verify 
                their immigration statuses by requiring each such 
                applicants to produce a document or documents that 
                demonstrate--
                          (i) identity; and
                          (ii) proof of lawful presence in the United 
                        States; and
                  (B) establish training requirements to ensure that 
                trusted agents at TWIC enrollment centers receive 
                training to identify fraudulent documents.
  (b) Expiration of TWICs.--A TWIC expires on the date of its 
expiration, or in the date on which the individual to whom such a TWIC 
is issued is no longer lawfully present in the United States, whichever 
is earlier.

SEC. 208. REPORT ON FEDERAL TRANSPORTATION SECURITY CREDENTIALING 
                    PROGRAMS.

  Not later than 180 days after the date of the enactment of this Act, 
the Secretary shall submit to the appropriate congressional committees 
a report that identifies unnecessary redundancies or overlaps in 
Federal transportation security credentialing programs, including 
recommendations to reduce or eliminate such redundancies or overlaps.

                          Purpose and Summary

    The purpose of H.R. 4251 is to authorize, enhance, and 
reform certain port security programs through increased 
efficiency and risk-based coordination within the Department of 
Homeland Security, and for other purposes.

                  Background and Need for Legislation

    Securing our waterways is an essential component of a 
layered approach to security. A major disruption at one of the 
Nation's ports, especially a terrorist attack, is a high 
consequence event that has the potential to cripple the global 
supply chain and severely damage our economy and cost lives.
    Smart, cost-effective security choices based on legitimate 
risk have to be made in order to secure the Nation's ports and 
costal waterways.
    The SMART Port Security Act builds on the work of the 
Security and Accountability For Every Port Act of 2006 (the 
``SAFE Port Act'', Pub. L. 109-347) to enhance risk-based 
security measures overseas before the threat reaches our 
shores, emphasizing a stronger collaborative environment 
between and among the components of the Department of Homeland 
Security in sharing port security duties.
    Based on a series of oversight hearings, the Committee 
learned that cooperation and coordination between the U.S. 
Coast Guard and Customs and Border Protection, and other State 
and local partners, should be more fully developed. This will 
allow the Department to perform its maritime security mission, 
at a reduced cost.
    The SMART Port Act encourages the Department to coordinate 
within the components to effectively secure the maritime 
environment, recognizes that maritime security is not the 
province of the Federal Government alone, and emphasizes the 
importance of partnerships with the private sector and 
international partners.

                                Hearings

    No hearings were held on H.R. 4251; however, the Committee 
conducted several oversight hearings on port and maritime 
security.
    On June 14, 2011, the Subcommittee on Border and Maritime 
Security held a hearing on ``Securing the Nation's Ports and 
Maritime Border--A Review of the Coast Guard's Post--9/11 
Homeland Security Missions.'' The Subcommittee received 
testimony from Admiral Robert J. Papp, Jr., Commandant of the 
U.S. Coast Guard.
    On July 12, 2011, the Subcommittee on Border and Maritime 
Security held a hearing entitled ``Protecting the Maritime 
Borders--Leveraging Law Enforcement Cooperation to Enhance 
Security Along America's Coasts.'' The Subcommittee received 
testimony from Major General Michael C. Kostelnik (Ret.), 
Assistant Commissioner, Office of Customs and Border Protection 
Air and Marine, U.S. Customs and Border Protection, Department 
of Homeland Security; Rear Admiral Paul F. Zukunft, Assistant 
Commandant for Marine Safety, Security and Stewardship, United 
States Coast Guard, Department of Homeland Security; Sheriff 
Tim Donnellon, St. Clair County Sheriff's Office, Michigan; and 
Sheriff Adrian Garcia, Harris County Sheriff's Office, Texas.
    The Subcommittee on Border and Maritime Security held a 
hearing on February 7, 2012, entitled ``Balancing Maritime 
Security and Trade Facilitation: Protecting our Ports, 
Increasing Commerce and Securing the Supply Chain--Part I.'' 
The Subcommittee received testimony from Hon. Jerrold Nadler, a 
Representative in Congress from the 8th District of New York; 
Mr. David Heyman, Assistant Secretary, Office of Policy, 
Department of Homeland Security; Mr. Kevin McAleenan, Acting 
Assistant Commissioner, Office of Field Operations, U.S. 
Customs and Border Protection, Department of Homeland Security; 
Rear Admiral Paul Zukunft, Assistant Commandant for Marine 
Safety, Security and Stewardship, U.S. Coast Guard, Department 
of Homeland Security; and Mr. Stephen Caldwell, Director, 
Maritime and Coast Guard Issues, Homeland Security and Justice 
Team, Government Accountability Office.

                        Committee Consideration

    The Subcommittee on Border and Maritime Security met on 
March 27, 2012, to consider H.R. 4251, and reported the measure 
to the Full Committee for consideration, amended, by voice 
vote.
    The Subcommittee agreed to H.R. 4251, as amended, by voice 
vote.
      The following amendments were offered:

       An Amendment in the Nature of a Substitute to H.R. 4251 
offered by Mrs. Miller (#1); was AGREED TO, as amended, by 
voice vote.

       An amendment to the Amendment in the Nature of a 
Substitute to H.R. 4251 offered by Mr. Rigell (#1A); was AGREED 
TO by voice vote.

  Add at the end a new title entitled ``Title _--Miscellaneous 
Provisions. Sec. 01. Recognition of Port Security Assessments Conducted 
by Other Entities.''

       An amendment to the Amendment in the Nature of a 
Substitute to H.R. 4251 offered by Mr. McCaul (#1B); was AGREED 
TO by voice vote.

  Add at the end a new title entitled ``Title _--Miscellaneous 
Provisions. Sec. 01. Limitation on Delegation of Inspection, 
Certification, and Related Services.''

    The Committee met on June 6, 2012, to consider H.R. 4251, 
and ordered the measure to be reported to the House with a 
favorable recommendation, amended, by voice vote. The Committee 
took the following actions:
    The Committee adopted H.R. 4251, as amended, by voice vote.
      The following amendments were offered:

       An Amendment in the Nature of a Substitute offered by 
Mrs.Miller (#1); was AGREED TO by voice vote, as amended.

       An amendment to the Amendment in the Nature of a 
Substitute offered by Ms. Richardson (#1A); was AGREED TO, by 
unanimous consent.

  At the end of title I, add a new section entitled ``Sec. 1_. Use of 
Port Security Grant Funds for Replacement of Security Equipment or 
Facilities.''

       An amendment to the Amendment in the Nature of a 
Substitute offered by Mr. Cravaack (#1B); was AGREED TO, by 
unanimous consent.

  At the end of title II, add a new section entitled ``Sec. 2. Report 
on Federal Transportation Security Credentialing Programs.''

                            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 consideration of 
H.R. 4251.

                      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. 
4251, the Securing Maritime Activities through Risk-based 
Targeting for Port Security Act, 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.
    However, the Committee notes that the costs associated with 
H.R. 4251, the SMART Port Security Act, are consistent with 
Department of Homeland Security maritime security 
responsibilities and should be supported using existing funds.
    The authorization of appropriations for Integrated Cross-
Border Maritime Operations, commonly called Shiprider, is 
consistent with the U.S. Coast Guard's planned funding level 
once this program transitions from a pilot to a fully 
operational program. The committee's intent is to support the 
use of existing Coast Guard funds, at the level authorized by 
the bill.

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 11, 2012.
Hon. Peter T. King, 
Chairman, Committee on Homeland Security,
U.S. House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4251, the SMART 
Port Security Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Mark 
Grabowicz and Sarah Puro.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 4251--SMART Port Security Act

    Summary: H.R. 4251 would require the Department of Homeland 
Security (DHS) to carry out two pilot programs relating to 
border and port security and would direct DHS and the 
Government Accountability Office (GAO) to prepare several 
reports on improving port security. In addition, the 
legislation would authorize the appropriation of $4 million for 
a security program jointly operated by the United States Coast 
Guard (USCG) and the Canadian government. H.R. 4251 also would 
direct DHS to make changes to procedures for issuing 
Transportation Worker Identification Credentials (TWICs) to 
individuals who require unescorted access to secure areas of 
ports and certain other facilities.
    CBO estimates that implementing this legislation would cost 
$9 million over the next five years, assuming appropriation of 
the necessary amounts. Changes to the TWIC program could affect 
offsetting receipts and subsequent direct spending; therefore, 
pay-as-you-go procedures apply. CBO estimates, however, that 
the net impact of any such effects would not be significant in 
any year. Enacting H.R. 4251 would not affect revenues.
    H.R. 4251 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 4251 is shown in the following table. 
The cost of this legislation falls within budget functions 400 
(transportation), 450 (community and regional development), 750 
(administration of justice), and 800 (general government).

----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in millions of dollars--
                                                              --------------------------------------------------
                                                                2013    2014    2015    2016    2017   2013-2017
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Pilot Programs and Reports:
    Estimated Authorization Level............................       5       *       *       0       0         5
    Estimated Outlays........................................       5       *       *       0       0         5
Coast Guard Border Security Program:
    Authorization Level......................................       2       2       0       0       0         4
    Estimated Outlays........................................       1       2       1       0       0         4
    Total Changes:
        Estimated Authorization Level........................       7       2       *       0       0         9
        Estimated Outlays....................................       6       2       1       0       0        9
----------------------------------------------------------------------------------------------------------------
Note: * = less than $500,000.

    Basis of estimate: For this estimate, CBO assumes that the 
legislation will be enacted near the end of 2012 and that 
amounts specified and estimated to be necessary will be 
appropriated for each year.

Spending subject to appropriation

    Pilot Programs and Reports. H.R. 4251 would direct DHS to 
carry out pilot programs relating to the use of unmanned 
aircraft to patrol the United States border with Canada and the 
expansion of a trade security program.
    The legislation also would require DHS and GAO to prepare 
several reports, most within one year of the bill's enactment. 
Those reports would address issues that include the following: 
Updating the Maritime Operations Coordination Plan, identifying 
duplicative programs and goals, assessing the deployment of 
personnel and equipment within interagency operational centers, 
and analyzing the threats and consequences of attacks by small 
vessels on U.S. ports or maritime interests. Based on the costs 
of similar activities, CBO estimates that the pilot programs 
and reports required by H.R. 4251 would cost about $5 million 
over the 2013-2015 period.
    Coast Guard Border Security Program. H.R. 4251 would 
authorize the appropriation of $4 million over the next two 
years for the USCG to continue working with the Canadian 
government to coordinate maritime security operations and to 
conduct joint training. CBO estimates that implementing this 
provision would cost $4 million over the 2013-2015 period, 
assuming appropriation of the specified amounts.

Direct spending

    The Maritime Transportation Security Act (Public Law 107-
295) directs the Secretary of Homeland Security to prohibit 
unauthorized individuals from accessing secure areas of ports, 
vessels, facilities on the outer continental shelf, and all 
credentialed merchant mariners. To meet that requirement, the 
Transportation Security Administration (TSA) issues credentials 
with biometric information, known as TWICs, to workers who 
require unescorted access to such areas. Under current 
administrative procedures, obtaining a TWIC requires at least 
two in-person visits to a TWIC enrollment center. H.R. 4251 
would direct the Secretary of Homeland Security to reform those 
procedures to ensure that individuals seeking a TWIC would need 
to make one such in-person visit. The bill also would extend, 
through June 30, 2014, the expiration date of TWICs for 
individuals whose credentials would otherwise expire sooner.
    The costs of implementing reformed TWIC procedures under 
H.R. 4251 are uncertain and would depend on specific changes 
that TSA would make. Current law directs TSA to collect and 
spend cost-based fees from TWIC applicants to administer the 
program. For this estimate, CBO assumes that TSA would revise 
fees to offset any change in TSA's costs to administer the TWIC 
program under H.R. 4251. Any such changes to offsetting 
receipts from such fees and subsequent spending would be 
considered direct spending; therefore, pay-as-you-go procedures 
apply. CBO estimates, however, that any resulting net changes 
in direct spending under H.R. 4251 would not be significant in 
any year.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. CBO estimates that the legislation would have an 
insignificant impact on direct spending.
    Intergovernmental and private-sector impact: H.R. 4251 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Previous CBO estimate: On June 8, 2012, CBO transmitted a 
cost estimate for H.R. 3173, a bill to direct the Secretary of 
Homeland Security to reform the process for the enrollment, 
activation, issuance, and renewal of a Transportation Worker 
Identification Credential (TWIC) to require, in total, not more 
than one in-person visit to a designated enrollment center, as 
ordered reported by the House Committee on Homeland Security on 
May 9, 2012. Provisions of H.R. 3173 and H.R. 4251 that would 
require DHS to modify procedures related to the TWIC program 
are substantively similar, and our cost estimates are the same.
    Estimate prepared by: Federal Costs: Mark Grabowicz (DHS), 
Sarah Puro (Coast Guard), Megan Carroll (TSA), Daniel Hoople 
(FEMA); Impact on state, local, and tribal governments: Melissa 
Merrell; Impact on the private sector: Paige Piper/Bach.
    Estimate approved by: Theresa Gullo, Deputy 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. 4251 contains the following 
general performance goals, and objectives, including outcome 
related goals and objectives authorized.
    The primary purpose of H.R. 4251 is to foster and promote 
greater coordination and cooperation among the components of 
the Department of Homeland Security in the execution of their 
maritime security mission. The Committee has identified several 
inefficiencies within the Department that are addressed in H.R. 
4251. The bill realizes greater cost efficiencies through 
strategic sourcing and collocating assets, increases 
collaboration among the Department's components, expands 
partnerships with our international allies, promotes fairness 
in the Transportation Worker Identification Credential (TWIC) 
process, and requires a clear, robust Global Supply Chain 
Security Strategy. H.R. 4251 builds on the strong security 
provisions of the SAFE Port Act of 2006 by identifying and 
eliminating waste and redundancies that will enable the 
Department to more efficiently carry out its duty to protect 
our Nation.

   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(e), 9(f), or 9(g) 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.

                        Preemption Clarification

    In compliance with section 423 of the Congressional Budget 
Act of 1974, requiring the report of any Committee on a bill or 
joint resolution to include a statement on the extent to which 
the bill or joint resolution is intended to preempt State, 
local, or Tribal law, the Committee finds that H.R. 4251 does 
not preempt any State, local, or Tribal law.

                      Advisory Committee Statement

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

                  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 Act may be cited as the ``Securing Maritime Activities 
through Risk-based Targeting for Port Security Act'' or the 
``SMART Port Security Act''.

Sec. 2. Table of Contents.

    This section details the contents of H.R. 4251.

Sec. 3. Definitions.

    This section defines the terms used in H.R. 4251.

    TITLE I--DEPARTMENT OF HOMELAND SECURITY PORT SECURITY PROGRAMS.

Sec. 101. Updates of Maritime Operations Coordination Plan.

    This section requires the Department of Homeland Security 
to update the Department's Maritime Operations Coordination 
Plan (MOC-P), which was first released in July 2011. Although 
long overdue, the Committee believes that this plan was an 
important first step towards establishing a National framework 
for interagency cooperation.
    This section requires the updated versions of the MOC-P be 
provided to Congress by July 1, 2014, and again on July 1, 
2019. However, the Committee intends the MOC-P to be updated on 
a periodic basis and expects that the next iteration of the 
MOC-P will include mechanisms to share best practices among and 
between the Regional Coordinating Mechanisms (ReCoMs); a 
process for feedback to filter up, down, and between the 
Department and the ReCoMs; a method to measure the 
effectiveness of ReCoMs; and a process for local and State law 
enforcement agencies and other port stakeholders to provide 
feedback to the ReCoMs and the Department.

Sec. 102.  U.S. Customs and Border Protection Office of Air and Marine 
        Asset Deployment.

    This section requires the Department to ensure that any new 
asset deployments by the U.S. Customs and Border Protection 
(CBP) Office of Air and Marine (OAM) are determined using a 
risk-based analysis. The Committee is concerned that a recent 
report from the Government Accountability Office (GAO) titled 
``Opportunities Exist to Ensure More Effective Use of DHS's Air 
and Marine Assets,'' identified weaknesses in CBP's 
documentation to clearly link deployment decisions with its 
goals.
    To ensure that future deployments are based on risk and the 
needs of mission commanders, the Committee's goal is to ensure 
implementation of the GAO's recommendation from the report, 
requiring CBP OAM to document decision making analysis on asset 
mix and placement. Moreover, the Committee strongly encourages 
CBP to use a documented, repeatable, and systematic method of 
asset deployment based on risk for any future asset deployment.

Sec. 103.  Cost-Benefit Analysis of Co-locating Operational Entities.

    This section requires the Department to examine locations 
where CBP OAM and the U.S. Coast Guard both have maritime or 
aviation assets deployed, and to determine the potential for 
cost savings through co-location. The Committee strongly 
believes that it is in the Nation's interest to reduce the 
footprint and associated logistics trail of components within 
the Department, to the degree practicable, in order to maximize 
limited resources and increase operational efficiencies.

Sec. 104. Study of Maritime Security Redundancies.

    This section requires GAO to review the Department's port 
security and maritime law enforcement operations within one 
year of enactment to identify duplicative, overlapping, or 
redundant activities, including the cost of such duplication. 
The GAO would be required to submit a report to the appropriate 
congressional committees on its findings, and provide 
recommendations for consolidation, elimination, or increased 
cooperation to reduce unnecessary duplication.
    While the Committee appreciates and supports the need for a 
layered security approach, given the budgetary climate it is 
important to ensure any unnecessary duplication, overlap, or 
redundant activity that exists be minimized to the degree 
practicable.

Sec. 105.  Acquisition and Strategic Sourcing of Marine and Aviation 
        Assets.

    This section requires the Department to use best practices 
of strategic sourcing to streamline the acquisition process and 
reduce costs prior to acquiring new boats or aviation assets 
for the Department. Examples of best practices of strategic 
sourcing include identifying common mission requirements and 
standardizing equipment purchases to reduce cost. To achieve 
this, the Secretary is required to establish a coordinating 
mechanism for aviation and maritime issues.
    The Committee is cognizant of the fact that the 
Department's components have different missions, but strongly 
believes component coordination of large-scale purchases can 
lead to significant cost-savings.

Sec. 106. Port Security Grant Program Management.

    This section sets timelines for the responses the 
Department and the Federal Emergency Management Agency (FEMA) 
must provide in regards to Port Security Grant applications. 
This provision is necessary, as numerous port authorities and 
State and local law enforcement agencies have voiced concern to 
the Committee about delays to grant applications responses. 
This section requires the Department and FEMA to respond to 
grant applicants no later than 180 days from the date their 
grant application was submitted.

Sec. 107.  Port Security Grant Funding for Mandated Security Personnel.

    This section allows the use of Port Security Grant Program 
funds to pay limited overtime and backfill costs. Other grant 
programs within the Department of Homeland Security allow for 
grant funds to be used to finance overtime and backfill costs 
and this provision will align the Port Security Grant Program 
with other departmental grants.

Sec. 108. Interagency Operational Centers of Port Security.

    This section requires CBP and the U.S. Immigration and 
Customs Enforcement (ICE) to ensure they appoint at least one 
part-time liaison to each Interagency Operation Center (IOC). 
The Committee is concerned that IOCs are not being fully 
utilized because DHS components are not willing to fund the 
personnel needed to ensure effective cooperation.
    To that end, the Committee expects the Secretary to report 
on participation in joint daily operations, training and 
certifying of non-Federal law enforcement personnel and joint 
training exercises; the deployment of interoperable 
communications equipment; and mission execution and support to 
inform the future of IOCs.

Sec. 109. Report on DHS Aviation Assets.

    This section requires the GAO to submit a report to the 
Congress that analyzes the costs, capabilities, and missions 
associated with both unmanned aerial vehicles (UAVs) and manned 
aircraft used by the Department. The Department has maintained 
that UAVs are significantly less expensive than manned 
aircraft, but the Committee is concerned about the reliability 
of CBP's cost estimates, as they do not include the cost of 
pilots, maintenance, or satellite communications.
    This provision is intended to provide the Committee with an 
accurate comparison of aviation asset costs.

Sec. 110. Small Vessel Threat Analysis.

    This section requires the Department to conduct a risk 
assessment of a small vessel terrorist attack occurring in U.S. 
ports or against U.S. maritime interests. While DHS published 
the Small Vessel Security Strategy Implementation Plan in 
January 2011, in order to coordinate actions to mitigate the 
small boat threat, the Committee expects the Department to 
incorporate small vessel threat analysis into existing risk 
assessment requirements on an on-going basis.

Sec. 111. U.S. Customs and Border Protection Workforce Plan.

    This section requires CBP to submit to Congress a plan for 
optimizing staffing levels for CBP to carry out the mission of 
the Department, including all border and port security 
functions. The staffing plan should consider previous staffing 
models by the Department and assessments of the threat and 
vulnerability.
    The Committee is disappointed that in spite of numerous 
bipartisan requests, CBP is unwilling to provide the Committee 
with proper documentation explaining its staffing plan. The 
Committee expects that the manpower data requested under this 
provision be provided on a yearly basis.

Sec. 112.  Integrated Cross-Border Maritime Operations Between the 
        United States and Canada.

    This section provides Congressional authorization for the 
U.S. Coast Guard and the Royal Canadian Mounted Police maritime 
Shiprider program. The authorization includes funding of $2 
million per year, which is the current level of funding for the 
program.
    Nothing in this section should be construed to undermine 
the existing Integrated Cross-Border Maritime Operations 
agreement. The Committee's intent is to affirm the importance 
of the program.

Sec. 113. Training and Certification of Training for Port Security.

    This section expands upon a provision from the Coast Guard 
Authorization Act of 2010 (Pub. L. 111-281) that allowed grant 
funds provided under the Port Security Grant Program (PSGP) to 
be used to pay for training of State and local law enforcement 
officers in enforcing maritime security zones. This section 
allows PSGP grants to be used for other types of maritime 
security training and certification, and ensures that training 
programs will be developed in consultation with the Federal Law 
Enforcement Training Center (FLETC). The Committee believes 
State and local law enforcement are a key element of a layered 
approach to maritime security, and provide maritime law 
enforcement benefits beyond simply enforcement within a 
security zone, and thus should be eligible to receive port 
security grant funding for other maritime law enforcement 
training.

Sec. 114. Northern Border Unmanned Aerial Vehicle Pilot Project.

    This section authorizes the Department to establish a pilot 
project to facilitate the safe integration of medium-sized UAVs 
into the National airspace in order to carry out border and 
maritime security missions. This pilot would specifically test 
UAVs along the Northern Border. CBP currently maintains a 
certificate of operation from the Federal Aviation 
Administration (FAA) to operate two unmanned aerial vehicles 
along the Northern Border. This provision would ensure that 
UAVs are properly tested for integration into the National 
Airspace as required by the FAA Authorization Act (Pub. L. 112-
95), within the unique environment of the Northern Border.

Sec. 115.  Recognition of Port Security Assessments Conducted by Other 
        Entities.

    This section would allow the U.S. Coast Guard (USCG) to 
recognize port security threat assessments conducted by a 
foreign nation or international organization, such as the 
European Union, provided that the assessment is equivalent to a 
USCG inspection. The Committee believes this section is 
necessary to avoid the duplicative efforts of our trusted 
allies.

Sec. 116.  Use of Port Security Grant Funds for Replacement of Security 
        Equipment or Facilities.

    This section allows Port Security Grant Program funds to be 
used to purchase the replacement of old equipment or 
facilities. Under current law and regulations, port security 
grant recipients may only use grant funds for acquisition, 
operation, and maintenance of current port security equipment.

                TITLE II--MARITIME SUPPLY CHAIN SECURITY

Sec. 201.  Strategic Plan to Enhance the Security of the International 
        Supply Chain.

    This section requires the Department to provide a detailed 
strategy focused on reducing unnecessary redundancies, building 
resiliency, and utilizing existing resources, technology, and 
concepts. The strategy should also consider providing 
incentives for the private sector to improve global supply 
chain security and should include measurable goals and metrics 
to measure success of the strategy.
    The Committee is dismayed by the brief National Strategy 
for Global Supply Chain Security issued in January and is 
concerned that the document did not comply with the statutory 
requirements of the SAFE Port Act of 2006. The Committee 
believes that this provision will correct that deficiency by 
requiring the Department to publish an in-depth strategy that 
more fully comports with the original Congressional intent.

Sec. 202. Customs-Trade Partnership Against Terrorism.

    This section authorizes CBP to conduct unannounced 
inspections for a Customs-Trade Partnership Against Terrorism 
(C-TPAT) member company, if the company has a history of 
violations. Additionally, this section allows CBP to share 
sensitive information regarding threats to the private sector 
between and among C-TPAT participants providing recognizable 
benefits for voluntary participation in the program.

Sec. 203.  Recognition of Other Countries' Trusted Shipper Programs.

    This section authorizes CBP to provide mutual recognition 
of another country's trusted shipper program, provided the 
country reciprocates to C-TPAT member companies, and the other 
country's program provides an equivalent level of security to 
C-TPAT. The Committee believes that by recognizing trusted 
shipper programs from other countries, the Department will save 
money and increase the efficiency of the international supply 
chain.

Sec. 204.  Pilot Program for Inclusion of Non-Asset Based Third-Party 
        Logistics Providers in the Customs-Trade Partnership Against 
        Terrorism.

    This section requires CBP to create a pilot program to test 
the security value and efficacy of allowing third-party 
logistics (3PL) companies into the C-TPAT program. 3PLs are 
non-asset based companies, working with outside companies to 
arrange the international transportation of freight.
    Despite clear statutory language in the ``SAFE Port Act of 
2006,'' CBP has not permitted the participation of 3PLs in the 
C-TPAT program. The Committee believes this pilot is an 
important first step to determine the security value of 
allowing 3PLs to participate in the C-TPAT program.

Sec. 205.  Transportation Worker Identification Credential Process 
        Reform.

    This section directs the Secretary to reform the process 
for the enrollment, activation, issuance and renewal of the 
Transportation Worker Identification Credential (TWIC) program. 
Specifically, this section allows TWIC applicants to conduct 
only one in-person visit to a TWIC enrollment center to process 
their application. Under current law and regulations, TWIC 
applicants must visit TWIC enrollment centers at least twice to 
complete the process.
    The Committee believes that the current requirement to 
visit a TWIC enrollment center multiple times is an onerous, 
unnecessary, burden for workers in the maritime industry, such 
as merchant vessel operators and truck drivers, who rely on 
obtaining the credential for employment.

Sec. 206.  Expiration of Certain Transportation Worker Identification 
        Credentials.

    This section exempts current TWIC holders from the 
requirement to renew their credentials until the Department 
issues a final rule regarding electronic TWIC readers or June 
30, 2014, whichever is earlier.
    As a result of the Department's delay in issuing this rule 
and the lack of readers in our Nation's ports, the TWIC's 
security value as a biometric credential has not been realized. 
The Committee believes transportation workers who must obtain a 
TWIC should not have to bear the burden of renewing their TWICs 
until the Government fulfills its obligation to issue the rule.
    This provision is intended to provide the Department 
motivation to issue the rule at the earliest possible date and 
ensure that the full security benefit of the TWIC program is 
realized.

Sec. 207.  Securing the Transportation Worker Identification Credential 
        Against Use by Unauthorized Aliens.

    This section prevents unauthorized aliens from being able 
to acquire a TWIC by directing the Secretary to modify the 
enrollment and distribution process to require an applicant to 
present proof of U.S. citizenship or authorization to work in 
the United States when applying. Furthermore, the Secretary 
must modify the TWIC enrollment process so that a TWIC will 
expire upon the same date that a TWIC holder's work 
authorization or visa will expire; whichever comes sooner.
    The Committee believes that this section is necessary to 
ensure all TWIC holders are authorized to work and are lawfully 
present in the U.S.

Sec. 208.  Report on Federal Transportation Security Credentialing 
        Programs.

    This section requires the Secretary to submit a report to 
Congress within 180 days identifying unnecessary redundancies 
or overlaps in Federal transportation security credentialing 
programs, including recommendations to reduce or eliminate such 
redundancies or overlaps. Although the Committee understands 
the Department is planning to address redundancy and 
duplication in the transportation security credentialing 
process by harmonizing security threat assessments through the 
Transportation Security Administration's Universal Rule, the 
Committee notes that the publication of the Rule continues to 
be delayed. The Committee believes the Department should issue 
the Universal Rule as soon as possible, in order to reduce the 
unnecessary cost and duplicative regulatory burden on 
transportation workers.

         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):

TITLE 46, UNITED STATES CODE

           *       *       *       *       *       *       *

Subtitle VII--Security and Drug Enforcement

           *       *       *       *       *       *       *

                       CHAPTER 701--PORT SECURITY

Sec.
Subchapter I--General
70101. Definitions.
     * * * * * * *
70107A. Interagency operational centers for port security.
     * * * * * * *

                  [subchapter ii--port security zones]

         subchapter ii--port security training and certification

     * * * * * * *
[70132. Credentialing standards, training, and certification for State 
          and local support for the enforcement of security zones for 
          the transportation of especially hazardous cargo.]
70132. Credentialing standards, training, and certification of maritime 
          law enforcement personnel.
     * * * * * * *

Subchapter I--General

           *       *       *       *       *       *       *

Sec. 70107. Grants

  (a) * * *
  (b) Eligible Costs.--The following costs of funding the 
correction of Coast Guard identified vulnerabilities in port 
security and ensuring compliance with Area Maritime 
Transportation Security Plans and facility security plans are 
eligible to be funded:
          (1) Salary, benefits, overtime compensation, 
        retirement contributions, and other costs of additional 
        Coast Guard mandated security personnel[.], including 
        overtime and backfill costs incurred in support of 
        other expenditures authorized under this subsection, 
        except that not more than 50 percent of amounts 
        received by a grantee under this section for a fiscal 
        year may be used under this paragraph.
          (2) The cost of acquisition (including replacement), 
        operation, and maintenance of security equipment or 
        facilities to be used for security monitoring and 
        recording, security gates and fencing, marine barriers 
        for designated security zones, security-related 
        lighting systems, remote surveillance, concealed video 
        systems, security vessels, and other security-related 
        infrastructure or equipment that contributes to the 
        overall security of passengers, cargo, or crewmembers. 
        Grants awarded under this section may not be used to 
        construct buildings or other physical facilities, 
        except those which are constructed under terms and 
        conditions consistent with the requirements under 
        section 611(j)(8) of the Robert T. Stafford Disaster 
        Relief and Emergency Assistance Act (42 U.S.C. 
        5121(j)(8)), including those facilities in support of 
        this paragraph, and specifically approved by the 
        Secretary. Costs eligible for funding under this 
        paragraph may not exceed the greater of--
                  (A) * * *

           *       *       *       *       *       *       *

          [(8) The cost of training law enforcement personnel--
                  [(A) to enforce a security zone under section 
                70132 of this title; or
                  [(B) assist in the enforcement of a security 
                zone.]
          (8) The cost of training and certifying a law 
        enforcement officer employed by a law enforcement 
        agency under section 70132 of this title.
  (c) Matching Requirements.--
          (1) * * *
          (2) Exceptions.--
                  (A) * * *
                  [(B) Higher level of support required.--If 
                the Secretary determines that a proposed 
                project merits support and cannot be undertaken 
                without a higher rate of Federal support, then 
                the Secretary may approve grants under this 
                section with a matching requirement other than 
                that specified in paragraph (1).
                  [(C) Training.--There are no matching 
                requirements for grants under subsection (a) to 
                train law enforcement agency personnel in the 
                enforcement of security zones under section 
                70132 of this title or in assisting in the 
                enforcement of such security zones.]
                  (B) Higher level of support required.--If the 
                Secretary or the Secretary's designee 
                determines that a proposed project merits 
                support and cannot be undertaken without a 
                higher rate of Federal support, then the 
                Secretary or the Secretary's designee may 
                approve grants under this section for that 
                project with a matching requirement other than 
                that specified in paragraph (1).
                  (C) Training and certification.--There are no 
                matching requirements for grants under 
                subsection (a) to train and certify law 
                enforcement personnel under section 70132 of 
                this title.
                  (D) Cost share determinations.--
                Notwithstanding any other provision of law, not 
                later than 60 days after the date on which an 
                applicant submits a complete application for a 
                matching requirement waiver under this 
                paragraph the Secretary shall either approve or 
                disapprove the application.

           *       *       *       *       *       *       *

  (g) Applications.--[Any entity]
          (1) In general.--Any entity subject to an Area 
        Maritime Transportation Security Plan may submit an 
        application for a grant under this section, at such 
        time, in such form, and containing such information and 
        assurances as the Secretary may require.
          (2) Determination.--Notwithstanding any other 
        provision of law, the Secretary shall, not later than 
        60 days after the date on which an applicant submits a 
        complete application for a grant under this section, 
        either approve or disapprove the application.

           *       *       *       *       *       *       *

  (i) Administration.--
          (1) * * *

           *       *       *       *       *       *       *

          (5) Release of funds.--To the maximum extent 
        practicable, the Secretary shall complete all necessary 
        programmatic reviews and release grant funds awarded 
        under this section to the appropriate entity not later 
        than 180 days after the date on which an applicant 
        submits a complete application.
          (6) Performance period.--The Secretary shall utilize 
        a period of performance of not less than 3 years for 
        expenditure of grant funds awarded under this section.
          (7) Extension determinations.--Notwithstanding any 
        other provision of law, not later than 60 days after 
        the date on which an applicant submits a complete 
        application for an extension of the period of 
        performance for a grant, the Secretary shall either 
        approve or disapprove the application.

           *       *       *       *       *       *       *

Sec. 70107A. Interagency operational centers for port security

  (a) * * *
  (b) Characteristics.--The interagency operational centers 
established under this section shall--
          (1)(A) * * *
          (B) where practicable, provide for the physical co-
        location of the Coast Guard, not less than part-time 
        representation from U. S. Customs and Border Protection 
        and U.S. Immigration and Customs Enforcement, and, as 
        the Secretary determines appropriate, representatives 
        of [the United States Customs and Border Protection, 
        the United States Immigration and Customs Enforcement,] 
        the Transportation Security Administration, the 
        Department of Justice, the Department of Defense, and 
        other Federal agencies, State and local law enforcement 
        or port security personnel, members of the Area 
        Maritime Security Committee, and other public and 
        private sector stakeholders adversely affected by a 
        transportation security incident or transportation 
        disruption;

           *       *       *       *       *       *       *

Sec. 70108. Foreign port assessment

  (a) * * *

           *       *       *       *       *       *       *

  (f) Recognition of Assessment Conducted by Other Entities.--
          (1) Certification and treatment of assessments.--For 
        the purposes of this section and section 70109, the 
        Secretary may treat an assessment conducted by a 
        foreign government or international organization as an 
        assessment by the Secretary required by subsection (a), 
        if the Secretary certifies that the assessment was 
        conducted in accordance with subsection (b).
          (2) Authorization to enter into agreements or 
        arrangements.--The Secretary may enter into an 
        agreement or arrangement with a foreign government or 
        international organization, under which--
                  (A) such government or organization may, on 
                behalf of the Secretary, conduct an assessment 
                required under subsection (a), or share with 
                the Secretary information pertaining to such 
                assessments; and
                  (B) the Secretary may, on behalf of such 
                foreign government or organization, conduct an 
                assessment described in subsection (a), or 
                share with such foreign government or 
                organization information pertaining to such 
                assessments.
          (3) Limitations.--Nothing in this subsection--
                  (A) requires the Secretary to recognize an 
                assessment that a foreign government or an 
                international organization conducts pursuant to 
                this subsection; or
                  (B) limits the discretion or ability of the 
                Secretary to conduct an assessment under this 
                section.
          (4) Notification.--Not later than 30 days before 
        entering into an agreement or arrangement with a 
        foreign government under paragraph (2), the Secretary 
        shall notify the appropriate congressional committees 
        of the proposed terms of such agreement or arrangement.

           *       *       *       *       *       *       *

Sec. 70122. Waterway watch program

  (a) * * *

           *       *       *       *       *       *       *

Sec. 70123. Mobile biometric identification

  (a) * * *

           *       *       *       *       *       *       *

[SEC. 70124. REGULATIONS.]

Sec. 70124. Regulations

  Unless otherwise provided, the Secretary may issue 
regulations necessary to implement this chapter.

Sec. 70125. Port security training for facility security officers

  (a) * * *

           *       *       *       *       *       *       *

                  [Subchapter II--Port Security Zones]

Subchapter II--Port Security Training and Certification

           *       *       *       *       *       *       *

Sec. 70132. Credentialing standards, training, and certification [for 
                    State and local support for the enforcement of 
                    security zones for the transportation of especially 
                    hazardous cargo] of maritime law enforcement 
                    personnel

  [(a) Standard.--The Commandant of the Coast Guard shall 
establish, by regulation, national standards for training and 
credentialing of law enforcement personnel--
          [(1) to enforce a security zone; or
          [(2) to assist in the enforcement of a security 
        zone.]
  (a) Standards.--The Commandant of the Coast Guard shall 
establish standards for training, qualification, and 
certification of a law enforcement officer employed by a law 
enforcement agency, to conduct or execute, pursuant to a 
cooperative enforcement agreement, maritime security, maritime 
law enforcement, and maritime surge capacity activities.
  (b) Training.--
          (1) The Commandant of the Coast Guard--
                  [(A) shall develop and publish a training 
                curriculum for--
                          [(i) law enforcement personnel to 
                        enforce a security zone;
                          [(ii) law enforcement personnel to 
                        enforce or assist in the enforcement of 
                        a security zone; and
                          [(iii) personnel who are employed or 
                        retained by a facility or vessel owner 
                        to assist in the enforcement of a 
                        security zone; and
                  [(B) may--
                          [(i) test and deliver such training, 
                        the curriculum for which is developed 
                        pursuant to subparagraph (A);
                          [(ii) enter into an agreement under 
                        which a public entity (including a 
                        Federal agency) or private entity may 
                        test and deliver such training, the 
                        curriculum for which has been developed 
                        pursuant to subparagraph (A); and
                          [(iii) may accept a program, 
                        conducted by a public entity (including 
                        a Federal agency) or private entity, 
                        through which such training is 
                        delivered the curriculum for which is 
                        developed pursuant to subparagraph 
                        (A).]
                  (A) after notice and opportunity for public 
                comment, may develop and publish training 
                curricula for the standards established under 
                subsection (a); and
                  (B) may--
                          (i) test and deliver training for 
                        which the curriculum is developed under 
                        subparagraph (A);
                          (ii) enter into an agreement under 
                        which any Federal, State, local, 
                        tribal, or private sector entity may 
                        test and deliver such training; and
                          (iii) accept the results of training 
                        conducted by any Federal, State, local, 
                        tribal, or private sector entity under 
                        such an agreement.
          [(2) Any Federal agency that provides such training, 
        and any public or private entity that receives moneys, 
        pursuant to section 70107(b)(8) of this title, to 
        provide such training, shall provide such training--
                  [(A) to law enforcement personnel who enforce 
                or assist in the enforcement of a security 
                zone; and
                  [(B) on an availability basis to--
                          [(i) law enforcement personnel who 
                        assist in the enforcement of a security 
                        zone; and
                          [(ii) personnel who are employed or 
                        retained by a facility or vessel owner 
                        or operator to assist in the 
                        enforcement of a security zone.]
          (2) Any training developed under paragraph (1) after 
        the date of enactment of the SMART Port Security Act 
        shall be developed in consultation with the Federal Law 
        Enforcement Training Center.

           *       *       *       *       *       *       *

          (4) Notwithstanding any other provision of law, any 
        moneys, other than an allocation made under the 
        Dingell-Johnson Sport Fish Restoration Act (16 U.S.C. 
        777 et seq.), awarded by the Department of Homeland 
        Security in the form of awards or grants, may be used 
        by the recipient to pay for [training of personnel to 
        assist in the enforcement of security zones and limited 
        access areas] training and certifying personnel under 
        this section.
  [(c) Certification; Training Partners.--In developing and 
delivering training under the training program, the Secretary, 
in coordination with the Maritime Administrator of the 
Department of Transportation, and consistent with section 109 
of the Maritime Transportation Security Act of 2002 (46 U.S.C. 
70101 note), shall--
          [(1) work with government training facilities, 
        academic institutions, private organizations, employee 
        organizations, and other entities that provide 
        specialized, state-of-the-art training for governmental 
        and nongovernmental emergency responder providers or 
        commercial seaport personnel and management;
          [(2) utilize, as appropriate, government training 
        facilities, courses provided by community colleges, 
        public safety academies, State and private 
        universities, and other facilities; and
          [(3) certify organizations that offer the curriculum 
        for training and certification.]
  (c) Certification of Personnel.--The Commandant of the Coast 
Guard may issue a certificate to law enforcement officer 
employed by a law enforcement agency, who has successfully 
completed training that the Commandant has developed under this 
section.
  (d) Tactical Training for Law Enforcement Personnel.--The 
Commandant of the Coast Guard may make such training developed 
under this section available to law enforcement officers 
employed by a law enforcement agency, on either a reimbursable 
or a non-reimbursable basis, if the Commandant determines 
that--
          (1) a member of the Coast Guard is unable or 
        unavailable to undertake tactical training the 
        authorization of which had been previously approved, 
        and no other member of the Coast Guard is reasonably 
        available to undertake such training;
          (2) the inability or unavailability of Coast Guard 
        personnel to undertake such training creates training 
        capacity within the training program; and
          (3) such training, if made available to such law 
        enforcement officers, would contribute to achievement 
        of the purposes of this section.

           *       *       *       *       *       *       *

                              ----------                              

                     HOMELAND SECURITY ACT OF 2002

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) * * *
  (b) Table of Contents.--The table of contents for this Act is 
as follows:
     * * * * * * *

       TITLE IV--DIRECTORATE OF BORDER AND TRANSPORTATION SECURITY

     * * * * * * *

                  Subtitle C--Miscellaneous Provisions

     * * * * * * *
Sec. 432. Integrated cross-border maritime operations between the United 
          States and Canada.

           *       *       *       *       *       *       *

TITLE IV--DIRECTORATE OF BORDER AND TRANSPORTATION SECURITY

           *       *       *       *       *       *       *

Subtitle C--Miscellaneous Provisions

           *       *       *       *       *       *       *

SEC. 432. INTEGRATED CROSS-BORDER MARITIME OPERATIONS BETWEEN THE 
                    UNITED STATES AND CANADA.

  (a) Authorization.--The Secretary is authorized to establish 
an Integrated Cross-Border Maritime Operations Program to 
coordinate maritime security operations between the United 
States and Canada (in this section referred to as the 
``Program'').
  (b) Purpose.--The Secretary, acting through the Commandant of 
the Coast Guard, shall administer the Program in a manner that 
results in a cooperative approach between the United States and 
Canada to strengthen border security and detect, prevent, 
suppress, investigate, and respond to terrorism and violations 
of law related to border security.
  (c) Training.--The Secretary, acting through the Commandant 
of the Coast Guard, in consultation with the Secretary of 
State, may--
          (1) establish, as an element of the Program, a 
        training program to create designated maritime law 
        enforcement officers;
          (2) conduct training jointly with Canada, including 
        training--
                  (A) on the detection and apprehension of 
                suspected terrorists and individuals attempting 
                to unlawfully cross or unlawfully use the 
                international maritime border between the 
                United States and Canada, to enhance border 
                security;
                  (B) on the integration, analysis, and 
                dissemination of port security information 
                between the United States and Canada;
                  (C) on the respective policy, regulatory, and 
                legal considerations related to the Program;
                  (D) on the use of force and maritime 
                security;
                  (E) in operational procedures and protection 
                of information and other sensitive information; 
                and
                  (F) on preparedness and response to maritime 
                terrorist incidents.
  (d) Coordination.--The Secretary, acting through the 
Commandant of the Coast Guard, shall coordinate the Program 
with other similar border security and antiterrorism programs 
within the Department.
  (e) Memoranda of Agreement.--The Secretary may enter into any 
memorandum of agreement necessary to carry out the Program.
  (f) Authorization of Appropriations.--To carry out this 
section there is authorized to be appropriated to the Secretary 
$2,000,000 for each of fiscal years 2013 and 2014.

           *       *       *       *       *       *       *

                              ----------                              

SAFE PORT ACT

           *       *       *       *       *       *       *

          TITLE II--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN

                     Subtitle A--General Provisions

SEC. 201. STRATEGIC PLAN TO ENHANCE THE SECURITY OF THE INTERNATIONAL 
                    SUPPLY CHAIN.

  (a) * * *
  [(b) Requirements.--The strategic plan required under 
subsection (a) shall--
          [(1) describe the roles, responsibilities, and 
        authorities of Federal, State, local, and tribal 
        government agencies and private-sector stakeholders 
        that relate to the security of the movement of 
        containers through the international supply chain;
          [(2) identify and address gaps and unnecessary 
        overlaps in the roles, responsibilities, or authorities 
        described in paragraph (1);
          [(3) identify and make recommendations regarding 
        legislative, regulatory, and organizational changes 
        necessary to improve coordination among the entities or 
        to enhance the security of the international supply 
        chain;
          [(4) provide measurable goals, including objectives, 
        mechanisms, and a schedule, for furthering the security 
        of commercial operations from point of origin to point 
        of destination;
          [(5) build on available resources and consider costs 
        and benefits;
          [(6) provide incentives for additional voluntary 
        measures to enhance cargo security, as recommended by 
        the Commissioner;
          [(7) consider the impact of supply chain security 
        requirements on small- and medium-sized companies;
          [(8) include a process for sharing intelligence and 
        information with private-sector stakeholders to assist 
        in their security efforts;
          [(9) identify a framework for prudent and measured 
        response in the event of a transportation security 
        incident involving the international supply chain;
          [(10) provide protocols for the expeditious 
        resumption of the flow of trade in accordance with 
        section 202;
          [(11) consider the linkages between supply chain 
        security and security programs within other systems of 
        movement, including travel security and terrorism 
        finance programs; and
          [(12) expand upon and relate to existing strategies 
        and plans, including the National Response Plan, the 
        National Maritime Transportation Security Plan, the 
        National Strategy for Maritime Security, and the 8 
        supporting plans of the Strategy, as required by 
        Homeland Security Presidential Directive 13.]
  (b) Requirements.--The strategic plan required under 
subsection (a), and any updates to the strategic plan required 
under subsection (g), shall--
          (1) identify and address gaps and unnecessary 
        redundancies or overlaps in the roles, 
        responsibilities, or authorities of the agencies 
        responsible for securing the supply chain, including--
                  (A) any unnecessary redundancies or overlaps 
                in Federal transportation security 
                credentialing programs; and
                  (B) any unnecessary redundancies or overlaps 
                in Federal trusted shipper or trusted trader 
                programs;
          (2) review ongoing efforts to align activities 
        throughout the Federal Government to--
                  (A) improve coordination among the agencies 
                referred to in paragraph (1);
                  (B) facilitate the efficient flow of 
                legitimate commerce;
                  (C) enhance the security of the international 
                supply chain; or
                  (D) address any gaps or overlaps described in 
                paragraph (1);
          (3) identify further regulatory or organizational 
        changes necessary to --
                  (A) improve coordination among the agencies 
                referred to in paragraph (1);
                  (B) facilitate the efficient flow of 
                legitimate commerce;
                  (C) enhance the security of the international 
                supply chain; or
                  (D) address any gaps or overlaps described in 
                paragraph (1);
          (4) provide measurable goals, including objectives, 
        mechanisms, and a schedule, for furthering the security 
        of commercial operations from point of origin to point 
        of destination;
          (5) build on available resources and consider costs 
        and benefits;
          (6) recommend additional incentives for voluntary 
        measures taken by private sector entities to enhance 
        supply chain security, including additional incentives 
        for such entities participating in the Customs-Trade 
        Partnership Against Terrorism in accordance with 
        sections 214, 215, and 216;
          (7) consider the impact of supply chain security 
        requirements on small- and medium-sized companies;
          (8) identify a framework for prudent and measured 
        response in the event of a transportation security 
        incident involving the international supply chain;
          (9) provide updated protocols for the expeditious 
        resumption of the flow of trade in accordance with 
        section 202;
          (10) review and address implementation of lessons 
        learned from recent exercises conducted under sections 
        114 and 115, and other international supply chain 
        security, response, or recovery exercises that the 
        Department participates in, as appropriate;
          (11) consider the linkages between supply chain 
        security and security programs within other systems of 
        movement, including travel security and terrorism 
        finance programs;
          (12) be informed by technologies undergoing research, 
        development, testing, and evaluation by the Department; 
        and
          (13) expand upon and relate to existing strategies 
        and plans for securing supply chains, including the 
        National Response Plan, the National Maritime 
        Transportation Security Plan, the National Strategy for 
        Maritime Security, and the eight supporting plans of 
        such National Strategy for Maritime Security, as 
        required by Homeland Security Presidential Directive 
        13.

           *       *       *       *       *       *       *

  (g) Report.--
          (1) * * *
          (2) [Final] Updated report.--Not later than 3 years 
        after the date on which the strategic plan is submitted 
        under paragraph (1), the Secretary shall submit a 
        report to the appropriate congressional committees that 
        contains an update of the strategic plan.
          (3) Final report.--Not later than two years after the 
        date on which the update of the strategic plan is 
        submitted under paragraph (2), the Secretary shall 
        submit to the appropriate congressional committees a 
        report that contains a further update of the strategic 
        plan.
          (4) Implementation plan.--Not later than one year 
        after the date on which the final update of the 
        strategic plan is submitted under paragraph (3), the 
        Secretary shall submit to the appropriate congressional 
        committees an implementation plan for carrying out the 
        strategic plan.
  (h) Threat Assessment.--In developing the reports and 
implementation plan required under subsection (g), the 
Secretary shall take into account an assessment of the current 
threats to the global supply chain.

           *       *       *       *       *       *       *

Subtitle B--Customs-Trade Partnership Against Terrorism

           *       *       *       *       *       *       *

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

  (a) * * *

           *       *       *       *       *       *       *

  [(d) Deadline.--Not later than 2 years after the date of the 
enactment of this Act, the Secretary, acting through the 
Commissioner, shall designate appropriate criteria pursuant to 
subsection (b) and provide benefits to validated Tier 3 
participants pursuant to subsection (c).]
  (d) Private Sector Information Sharing on Security and 
Terrorism Threats.--
          (1) In general.--The Secretary shall promote 
        information sharing, as appropriate, between and among 
        the Department and C-TPAT participants and other 
        private entities regarding--
                  (A) potential vulnerabilities, attacks, and 
                exploitations of the international supply 
                chain; and
                  (B) means and methods of preventing, 
                responding to, and mitigating consequences from 
                the vulnerabilities, attacks, and exploitations 
                described in subparagraph (A).
          (2) Contents.--The information sharing required under 
        paragraph (1) may include--
                  (A) the creation of classified and 
                unclassified means of accessing information 
                that may be used by appropriately cleared 
                personnel and that will provide, as 
                appropriate, ongoing situational awareness of 
                the security of the international supply chain; 
                and
                  (B) the creation of guidelines to establish a 
                mechanism by which owners and operators of 
                international supply chain infrastructure may 
                report actual or potential security breaches.

SEC. 217. CONSEQUENCES FOR LACK OF COMPLIANCE.

  (a) In General.--[If at any time]
          (1) Failure to meet requirements.--If at any time a 
        C-TPAT participant's security measures and supply chain 
        security practices fail to meet any of the requirements 
        under this subtitle, the Commissioner may deny the 
        participant benefits otherwise available under this 
        subtitle, in whole or in part. The Commissioner shall 
        develop procedures that provide appropriate protections 
        to C-TPAT participants before benefits are revoked. 
        Such procedures may not limit the ability of the 
        Commissioner to take actions to protect the national 
        security of the United States.
          (2) Unannounced inspections.--The Secretary, acting 
        through the Commissioner, may conduct an unannounced 
        inspection of a C-TPAT participant's security measures 
        and supply chain security practices if the Commissioner 
        determines, based on previously identified deficiencies 
        in security measures and supply chain security 
        practices of the C-TPAT participant, that there is a 
        likelihood that such an inspection would assist in 
        confirming the security measures in place and further 
        the validation process.

           *       *       *       *       *       *       *

SEC. 218. THIRD PARTY VALIDATIONS.

  (a) * * *

           *       *       *       *       *       *       *

  (j) Recognition of Other Countries' Trusted Shipper 
Programs.--Not later than 30 days before signing an arrangement 
between the United States and a foreign government providing 
for mutual recognition of supply chain security practices which 
might result in the utilization of benefits described in 
section 214, 215, or 216, the Secretary shall--
          (1) notify the appropriate congressional committees 
        of the proposed terms of such arrangement; and
          (2) determine, in consultation with the Commissioner, 
        that the foreign government's supply chain security 
        program provides comparable security as that provided 
        by C-TPAT.

           *       *       *       *       *       *       *

                            ADDITIONAL VIEWS

    Democratic Members of the Committee on Homeland Security 
remain committed to strengthening the security of America's 
ports and waterways and ensuring the Department of Homeland 
Security's maritime security efforts are as effective and 
efficient as practicable. To that end, Democratic Members were 
pleased to author several provisions included H.R. 4251, as 
reported by the Committee.
    Sec. 107. Port Security Grant Funding for Mandated Security 
Personnel, is based on H.R. 5803, the Port Security Boots on 
the Ground Act, introduced by Representative Laura Richardson. 
This section provides for the use of Port Security Grant 
Program funds to pay certain overtime costs for mandated 
security personnel, as is permitted under other similar 
Department grant programs.
    Sec. 110. Small Vessel Threat Analysis, is based on a 
legislative proposal authored by Representative Loretta Sanchez 
to require the Department to conduct a risk assessment of a 
small vessel terrorist attack occurring in U.S. ports or 
against U.S. maritime interests.
    Sec. 114. Northern Border Unmanned Aerial Vehicle Pilot 
Project, is based on a legislative proposal authored by 
Representative Hansen Clarke to authorize the Department to 
establish a pilot project to facilitate the safe integration of 
medium-sized UAVs into the National airspace along the northern 
border.
    Sec. 116. Use of Port Security Grant Funds for Replacement 
of Security Equipment or Facilities, is based on H.R. 5802, the 
Port Security Equipment Improvement Act of 2012, introduced by 
Representative Laura Richardson. This section provides for the 
use of Port Security Grant Program funds for the replacement of 
old equipment or facilities.
    Sec. 206. Expiration of Certain Transportation Worker 
Identification Credentials, is based on H.R. 1105, the 
Transitioning With an Improved Credential (TWIC) Program Act, 
introduced by Ranking Member Bennie G. Thompson. This section 
exempts current TWIC holders from the requirement to renew 
their credentials until the Department issues a final rule 
regarding electronic TWIC readers or June 30, 2014, whichever 
is earlier.
    Sec. 207. Securing the Transportation Worker Identification 
Credential Against Use by Unauthorized Aliens, is based on a 
legislative proposal authored by Representative Loretta 
Sanchez. A May 2011 Government Accountability Office report 
entitled ``Transportation Worker Identification Credential: 
Internal Control Weaknesses Need to Be Corrected to Help 
Achieve Security Objectives (GA0-11-657)'' identified 
weaknesses in the TWIC application process that could allow 
aliens not authorized to work in the U.S. to obtain a TWIC. 
This section addresses those deficiencies by directing the 
Secretary to modify the TWIC enrollment and distribution 
process to help ensure that only those authorized to work in 
the U.S. are able to obtain and use a TWIC.

                                                Bennie G. Thompson,
                                                    Ranking Member.

                                  
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