```

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4954 Enrolled Bill (ENR)]

        H.R.4954

                       One Hundred Ninth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
             the third day of January, two thousand and six

                                 An Act

 
    To improve maritime and cargo security through enhanced layered 
                    defenses, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
    (a) Short Title.--This Act may be cited as the ``Security and 
Accountability For Every Port Act of 2006'' or the ``SAFE Port Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

               TITLE I--SECURITY OF UNITED STATES SEAPORTS

                     Subtitle A--General Provisions

Sec. 101. Area Maritime Transportation Security Plan to include salvage 
          response plan.
Sec. 102. Requirements relating to maritime facility security plans.
Sec. 103. Unannounced inspections of maritime facilities.
Sec. 104. Transportation security card.
Sec. 105. Study to identify redundant background records checks.
Sec. 106. Prohibition of issuance of transportation security cards to 
          persons convicted of certain felonies.
Sec. 107. Long-range vessel tracking.
Sec. 108. Establishment of interagency operational centers for port 
          security.
Sec. 109. Notice of arrival for foreign vessels on the Outer Continental 
          Shelf.
Sec. 110. Enhanced crewmember identification.

    Subtitle B--Port Security Grants; Training and Exercise Programs

Sec. 111. Risk assessment tool.
Sec. 112. Port security grants.
Sec. 113. Port Security Training Program.
Sec. 114. Port Security Exercise Program.
Sec. 115. Facility exercise requirements.

                       Subtitle C--Port Operations

Sec. 121. Domestic radiation detection and imaging.
Sec. 122. Inspection of car ferries entering from abroad.
Sec. 123. Random searches of containers.
Sec. 124. Work stoppages and employee-employer disputes.
Sec. 125. Threat assessment screening of port truck drivers.
Sec. 126. Border Patrol unit for United States Virgin Islands.
Sec. 127. Report on arrival and departure manifests for certain 
          commercial vessels in the United States Virgin Islands.
Sec. 128. Center of Excellence for Maritime Domain Awareness.

          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.
Sec. 202. Post-incident resumption of trade.
Sec. 203. Automated Targeting System.
Sec. 204. Container security standards and procedures.
Sec. 205. Container Security Initiative.

         Subtitle B--Customs-Trade Partnership Against Terrorism

Sec. 211. Establishment.
Sec. 212. Eligible entities.
Sec. 213. Minimum requirements.
Sec. 214. Tier 1 participants in C-TPAT.
Sec. 215. Tier 2 participants in C-TPAT.
Sec. 216. Tier 3 participants in C-TPAT.
Sec. 217. Consequences for lack of compliance.
Sec. 218. Third party validations.
Sec. 219. Revalidation.
Sec. 220. Noncontainerized cargo.
Sec. 221. C-TPAT program management.
Sec. 222. Additional personnel.
Sec. 223. Authorization of appropriations.

                  Subtitle C--Miscellaneous Provisions

Sec. 231. Pilot integrated scanning system.
Sec. 232. Screening and scanning of cargo containers.
Sec. 233. International cooperation and coordination.
Sec. 234. Foreign port assessments.
Sec. 235. Pilot program to improve the security of empty containers.
Sec. 236. Information sharing relating to supply chain security 
          cooperation.

                        TITLE III--ADMINISTRATION

Sec. 301. Office of Cargo Security Policy.
Sec. 302. Reauthorization of Homeland Security Science and Technology 
          Advisory Committee.
Sec. 303. Research, development, test, and evaluation efforts in 
          furtherance of maritime and cargo security.

                TITLE IV--AGENCY RESOURCES AND OVERSIGHT

Sec. 401. Trade and customs revenue functions of the department.
Sec. 402. Office of international trade; oversight.
Sec. 403. Resources.
Sec. 404. Negotiations.
Sec. 405. International Trade Data System.
Sec. 406. In-bond cargo.
Sec. 407. Sense of the Senate.

               TITLE V--DOMESTIC NUCLEAR DETECTION OFFICE

Sec. 501. Establishment of Domestic Nuclear Detection Office.
Sec. 502. Technology research and development investment strategy for 
          nuclear and radiological detection.

               TITLE VI--COMMERCIAL MOBILE SERVICE ALERTS

Sec. 601. Short title.
Sec. 602. Federal Communications Commission duties.
Sec. 603. Commercial Mobile Service Alert Advisory Committee.
Sec. 604. Research and development.
Sec. 605. Grant program for remote community alert systems.
Sec. 606. Funding.
Sec. 607. Essential services disaster assistance.
Sec. 608. Community disaster loans.
Sec. 609. Public facilities.
Sec. 610. Expedited payments.
Sec. 611. Use of local contracting.
Sec. 612. FEMA programs.
Sec. 613. Homeland security definition.

                        TITLE VII--OTHER MATTERS

Sec. 701. Security plan for essential air service and small community 
          airports.
Sec. 702. Disclosures regarding homeland security grants.
Sec. 703. Trucking security.
Sec. 704. Air and Marine Operations of the Northern Border Air Wing.
Sec. 705. Phaseout of vessels supporting oil and gas development.
Sec. 706. Coast Guard property in Portland, Maine.
Sec. 707. Methamphetamine and methamphetamine precursor chemicals.
Sec. 708. Aircraft charter customer and lessee prescreening program.
Sec. 709. Protection of health and safety during disasters.

           TITLE VIII--UNLAWFUL INTERNET GAMBLING ENFORCEMENT

Sec. 801. Short title.
Sec. 802. Prohibition on acceptance of any payment instrument for 
          unlawful Internet gambling.
Sec. 803. Internet gambling in or through foreign jurisdictions.

SEC. 2. DEFINITIONS.

    In this Act:
        (1) Appropriate congressional committees.--Except as otherwise 
    provided, the term ``appropriate congressional committees'' means--
            (A) the Committee on Appropriations of the Senate;
            (B) the Committee on Commerce, Science, and Transportation 
        of the Senate;
            (C) the Committee on Finance of the Senate;
            (D) the Committee on Homeland Security and Governmental 
        Affairs of the Senate;
            (E) the Committee on Appropriations of the House of 
        Representatives;
            (F) the Committee on Homeland Security of the House of 
        Representatives;
            (G) the Committee on Transportation and Infrastructure of 
        the House of Representatives;
            (H) the Committee on Ways and Means of the House of 
        Representatives; and
            (I) other congressional committees, as appropriate.
        (2)  Commercial operations advisory committee.--The term 
    ``Commercial Operations Advisory Committee'' means the Advisory 
    Committee established pursuant to section 9503(c) of the Omnibus 
    Budget Reconciliation Act of 1987 (19 U.S.C. 2071 note) or any 
    successor committee.
        (3) Commercial seaport personnel.--The term ``commercial 
    seaport personnel'' includes any person engaged in an activity 
    relating to the loading or unloading of cargo or passengers, the 
    movement or tracking of cargo, the maintenance and repair of 
    intermodal equipment, the operation of cargo-related equipment 
    (whether or not integral to the vessel), and the handling of 
    mooring lines on the dock when a vessel is made fast or let go in 
    the United States.
        (4) Commissioner.--The term ``Commissioner'' means the 
    Commissioner responsible for the United States Customs and Border 
    Protection of the Department of Homeland Security.
        (5) Container.--The term ``container'' has the meaning given 
    the term in the International Convention for Safe Containers, with 
    annexes, done at Geneva, December 2, 1972 (29 UST 3707).
        (6) Container security device.--The term ``container security 
    device'' means a device, or system, designed, at a minimum, to 
    identify positively a container, to detect and record the 
    unauthorized intrusion of a container, and to secure a container 
    against tampering throughout the supply chain. Such a device, or 
    system, shall have a low false alarm rate as determined by the 
    Secretary.
        (7) Department.--The term ``Department'' means the Department 
    of Homeland Security.
        (8) Examination.--The term ``examination'' means an inspection 
    of cargo to detect the presence of misdeclared, restricted, or 
    prohibited items that utilizes nonintrusive imaging and detection 
    technology.
        (9) Inspection.--The term ``inspection'' means the 
    comprehensive process used by the United States Customs and Border 
    Protection to assess goods entering the United States to appraise 
    them for duty purposes, to detect the presence of restricted or 
    prohibited items, and to ensure compliance with all applicable 
    laws. The process may include screening, conducting an examination, 
    or conducting a search.
        (10) International supply chain.--The term ``international 
    supply chain'' means the end-to-end process for shipping goods to 
    or from the United States beginning at the point of origin 
    (including manufacturer, supplier, or vendor) through a point of 
    distribution to the destination.
        (11) Radiation detection equipment.--The term ``radiation 
    detection equipment'' means any technology that is capable of 
    detecting or identifying nuclear and radiological material or 
    nuclear and radiological explosive devices.
        (12) Scan.--The term ``scan'' means utilizing nonintrusive 
    imaging equipment, radiation detection equipment, or both, to 
    capture data, including images of a container.
        (13) Screening.--The term ``screening'' means a visual or 
    automated review of information about goods, including manifest or 
    entry documentation accompanying a shipment being imported into the 
    United States, to determine the presence of misdeclared, 
    restricted, or prohibited items and assess the level of threat 
    posed by such cargo.
        (14) Search.--The term ``search'' means an intrusive 
    examination in which a container is opened and its contents are 
    devanned and visually inspected for the presence of misdeclared, 
    restricted, or prohibited items.
        (15) Secretary.--The term ``Secretary'' means the Secretary of 
    Homeland Security.
        (16) Transportation disruption.--The term ``transportation 
    disruption'' means any significant delay, interruption, or stoppage 
    in the flow of trade caused by a natural disaster, heightened 
    threat level, an act of terrorism, or any transportation security 
    incident (as defined in section 70101(6) of title 46, United States 
    Code).
        (17) Transportation security incident.--The term 
    ``transportation security incident'' has the meaning given the term 
    in section 70101(6) of title 46, United States Code.

              TITLE I--SECURITY OF UNITED STATES SEAPORTS
                     Subtitle A--General Provisions

    SEC. 101. AREA MARITIME TRANSPORTATION SECURITY PLAN TO INCLUDE 
      SALVAGE RESPONSE PLAN.
    Section 70103(b)(2) of title 46, United States Code, is amended--
        (1) in subparagraph (E), by striking ``and'' after the 
    semicolon;
        (2) by redesignating subparagraph (F) as subparagraph (G); and
        (3) by inserting after subparagraph (E) the following:
        ``(F) include a salvage response plan--
            ``(i) to identify salvage equipment capable of restoring 
        operational trade capacity; and
            ``(ii) to ensure that the waterways are cleared and the 
        flow of commerce through United States ports is reestablished 
        as efficiently and quickly as possible after a maritime 
        transportation security incident; and''.
    SEC. 102. REQUIREMENTS RELATING TO MARITIME FACILITY SECURITY 
      PLANS.
    Section 70103(c) of title 46, United States Code, is amended--
        (1) in paragraph (3)--
            (A) in subparagraph (C)(ii), by striking ``facility'' and 
        inserting ``facility, including access by persons engaged in 
        the surface transportation of intermodal containers in or out 
        of a port facility'';
            (B) in subparagraph (F), by striking ``and'' at the end;
            (C) in subparagraph (G), by striking the period at the end 
        and inserting ``; and''; and
            (D) by adding at the end the following:
        ``(H) in the case of a security plan for a facility, be 
    resubmitted for approval of each change in the ownership or 
    operator of the facility that may substantially affect the security 
    of the facility.''; and
        (2) by adding at the end the following:
    ``(8)(A) The Secretary shall require that the qualified individual 
having full authority to implement security actions for a facility 
described in paragraph (2) shall be a citizen of the United States.
    ``(B) The Secretary may waive the requirement of subparagraph (A) 
with respect to an individual if the Secretary determines that it is 
appropriate to do so based on a complete background check of the 
individual and a review of all terrorist watch lists to ensure that the 
individual is not identified on any such terrorist watch list.''.
    SEC. 103. UNANNOUNCED INSPECTIONS OF MARITIME FACILITIES.
    Section 70103(c)(4)(D) of title 46, United States Code, is amended 
to read as follows:
        ``(D) subject to the availability of appropriations, verify the 
    effectiveness of each such facility security plan periodically, but 
    not less than 2 times per year, at least 1 of which shall be an 
    inspection of the facility that is conducted without notice to the 
    facility.''.
    SEC. 104. TRANSPORTATION SECURITY CARD.
    (a) In General.--Section 70105 of title 46, United States Code, is 
amended by adding at the end the following:
    ``(g) Applications for Merchant Mariners' Documents.--The Assistant 
Secretary of Homeland Security for the Transportation Security 
Administration and the Commandant of the Coast Guard shall concurrently 
process an application from an individual for merchant mariner's 
documents under chapter 73 of title 46, United States Code, and an 
application from that individual for a transportation security card 
under this section.
    ``(h) Fees.--The Secretary shall ensure that the fees charged each 
individual applying for a transportation security card under this 
section who has passed a background check under section 5103a(d) of 
title 49, United States Code, and who has a current hazardous materials 
endorsement in accordance with section 1572 of title 49, Code of 
Federal Regulations, and each individual with a current merchant 
mariners' document who has passed a criminal background check under 
section 7302(d)--
        ``(1) are for costs associated with the issuance, production, 
    and management of the transportation security card, as determined 
    by the Secretary; and
        ``(2) do not include costs associated with performing a 
    background check for that individual, except for any incremental 
    costs in the event that the scope of such background checks 
    diverge.
    ``(i) Implementation Schedule.--In implementing the transportation 
security card program under this section, the Secretary shall--
        ``(1) establish a priority for each United States port based on 
    risk, including vulnerabilities assessed under section 70102; and
        ``(2) implement the program, based upon such risk and other 
    factors as determined by the Secretary, at all facilities regulated 
    under this chapter at--
            ``(A) the 10 United States ports that the Secretary 
        designates top priority not later than July 1, 2007;
            ``(B) the 40 United States ports that are next in order of 
        priority to the ports described in subparagraph (A) not later 
        than January 1, 2008; and
            ``(C) all other United States ports not later than January 
        1, 2009.
    ``(j) Transportation Security Card Processing Deadline.--Not later 
than January 1, 2009, the Secretary shall process and issue or deny 
each application for a transportation security card under this section 
for individuals with current and valid merchant mariners' documents on 
the date of the enactment of the SAFE Port Act.
    ``(k) Deployment of Transportation Security Card Readers.--
        ``(1) Pilot program.--
            ``(A) In general.--The Secretary shall conduct a pilot 
        program to test the business processes, technology, and 
        operational impacts required to deploy transportation security 
        card readers at secure areas of the marine transportation 
        system.
            ``(B) Geographic locations.--The pilot program shall take 
        place at not fewer than 5 distinct geographic locations, to 
        include vessels and facilities in a variety of environmental 
        settings.
            ``(C) Commencement.--The pilot program shall commence not 
        later than 180 days after the date of the enactment of the SAFE 
        Port Act.
        ``(2) Correlation with transportation security cards.--
            ``(A) In general.--The pilot program described in paragraph 
        (1) shall be conducted concurrently with the issuance of the 
        transportation security cards described in subsection (b) to 
        ensure card and card reader interoperability.
            ``(B) Fee.--An individual charged a fee for a 
        transportation security card issued under this section may not 
        be charged an additional fee if the Secretary determines 
        different transportation security cards are needed based on the 
        results of the pilot program described in paragraph (1) or for 
        other reasons related to the technology requirements for the 
        transportation security card program.
        ``(3) Regulations.--Not later than 2 years after the 
    commencement of the pilot program under paragraph (1)(C), the 
    Secretary, after a notice and comment period that includes at least 
    1 public hearing, shall promulgate final regulations that require 
    the deployment of transportation security card readers that are 
    consistent with the findings of the pilot program and build upon 
    the regulations prescribed under subsection (a).
        ``(4) Report.--Not later than 120 days before the promulgation 
    of regulations under paragraph (3), the Secretary shall submit a 
    comprehensive report to the appropriate congressional committees 
    (as defined in section 2(1) of SAFE Port Act) that includes--
            ``(A) the findings of the pilot program with respect to 
        technical and operational impacts of implementing a 
        transportation security card reader system;
            ``(B) any actions that may be necessary to ensure that all 
        vessels and facilities to which this section applies are able 
        to comply with such regulations; and
            ``(C) an analysis of the viability of equipment under the 
        extreme weather conditions of the marine environment.
    ``(l) Progress Reports.--Not later than 6 months after the date of 
the enactment of the SAFE Port Act, and every 6 months thereafter until 
the requirements under this section are fully implemented, the 
Secretary shall submit a report on progress being made in implementing 
such requirements to the appropriate congressional committees (as 
defined in section 2(1) of the SAFE Port Act).
    ``(m) Limitation.--The Secretary may not require the placement of 
an electronic reader for transportation security cards on a vessel 
unless--
        ``(1) the vessel has more individuals on the crew that are 
    required to have a transportation security card than the number the 
    Secretary determines, by regulation issued under subsection (k)(3), 
    warrants such a reader; or
        ``(2) the Secretary determines that the vessel is at risk of a 
    severe transportation security incident.''.
    (b) Clarification of Eligibility for Transportation Security 
Cards.--Section 70105 of title 46, United States Code, is amended--
        (1) in subsection (b)(2)--
            (A) in subparagraph (E), by striking ``and'' at the end;
            (B) in subparagraph (F), by striking the period at the end 
        and inserting ``; and''; and
            (C) by adding at the end the following:
            ``(G) other individuals as determined appropriate by the 
        Secretary including individuals employed at a port not 
        otherwise covered by this subsection.''; and
        (2) in subsection (c)(2), by inserting ``subparagraph (A), (B), 
    or (D)'' before ``paragraph (1)''.
    (c) Deadline for Section 70105 Regulations.--Not later than January 
1, 2007, the Secretary shall promulgate final regulations implementing 
the requirements for issuing transportation security cards under 
section 70105 of title 46, United States Code. The regulations shall 
include a background check process to enable newly hired workers to 
begin working unless the Secretary makes an initial determination that 
the worker poses a security risk. Such process shall include a check 
against the consolidated and integrated terrorist watch list maintained 
by the Federal Government.
    SEC. 105. STUDY TO IDENTIFY REDUNDANT BACKGROUND RECORDS CHECKS.
    (a) Study.--The Comptroller General of the United States shall 
conduct a study of background records checks carried out for the 
Department that are similar to the background records check required 
under section 5103a of title 49, United States Code, to identify 
redundancies and inefficiencies in connection with such checks.
    (b) Report.--Not later than 6 months after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit a report to Congress on the results of the study, 
including--
        (1) an identification of redundancies and inefficiencies 
    referred to in subsection (a); and
        (2) recommendations for eliminating such redundancies and 
    inefficiencies.
    SEC. 106. PROHIBITION OF ISSUANCE OF TRANSPORTATION SECURITY CARDS 
      TO PERSONS CONVICTED OF CERTAIN FELONIES.
    The Secretary, in issuing a final rule pursuant to section 70105 of 
title 46, United States Code, shall provide for the disqualification of 
individuals who have been found guilty or have been found not guilty by 
reason of insanity of a felony, involving--
        (1) treason, or conspiracy to commit treason;
        (2) espionage, or conspiracy to commit espionage;
        (3) sedition, or conspiracy to commit sedition; or
        (4) a crime listed in chapter 113B of title 18, United States 
    Code, a comparable State law, or conspiracy to commit such crime.
    SEC. 107. LONG-RANGE VESSEL TRACKING.
    (a) Regulations.--Section 70115 of title 46, United States Code, is 
amended in the first sentence by striking ``The Secretary'' and 
inserting ``Not later than April 1, 2007, the Secretary''.
    (b) Voluntary Program.--The Secretary may issue regulations to 
establish a voluntary long-range automated vessel tracking system for 
vessels described in section 70115 of title 46, United States Code, 
during the period before regulations are issued under such section.
    SEC. 108. ESTABLISHMENT OF INTERAGENCY OPERATIONAL CENTERS FOR PORT 
      SECURITY.
    (a) In General.--Chapter 701 of title 46, United States Code, is 
amended by inserting after section 70107 the following:

``Sec. 70107A. Interagency operational centers for port security

    ``(a) In General.--The Secretary shall establish interagency 
operational centers for port security at all high-priority ports not 
later than 3 years after the date of the enactment of the SAFE Port 
Act.
    ``(b) Characteristics.--The interagency operational centers 
established under this section shall--
        ``(1) utilize, as appropriate, the compositional and 
    operational characteristics of existing centers, including--
            ``(A) the pilot project interagency operational centers for 
        port security in Miami, Florida; Norfolk/Hampton Roads, 
        Virginia; Charleston, South Carolina; and San Diego, 
        California; and
            ``(B) the virtual operation center of the Port of New York 
        and New Jersey;
        ``(2) be organized to fit the security needs, requirements, and 
    resources of the individual port area at which each is operating;
        ``(3) in addition to the Coast Guard, provide, as the Secretary 
    determines appropriate, for participation by 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; and
        ``(4) be incorporated in the implementation and administration 
    of--
            ``(A) maritime transportation security plans developed 
        under section 70103;
            ``(B) maritime intelligence activities under section 70113 
        and information sharing activities consistent with section 1016 
        of the National Security Intelligence Reform Act of 2004 (6 
        U.S.C. 485) and the Homeland Security Information Sharing Act 
        (6 U.S.C. 481 et seq.);
            ``(C) short- and long-range vessel tracking under sections 
        70114 and 70115;
            ``(D) protocols under section 201(b)(10) of the SAFE Port 
        Act;
            ``(E) the transportation security incident response plans 
        required by section 70104; and
            ``(F) other activities, as determined by the Secretary.
    ``(c) Security Clearances.--The Secretary shall sponsor and 
expedite individuals participating in interagency operational centers 
in gaining or maintaining their security clearances. Through the 
Captain of the Port, the Secretary may identify key individuals who 
should participate. The port or other entities may appeal to the 
Captain of the Port for sponsorship.
    ``(d) Security Incidents.--During a transportation security 
incident on or adjacent to waters subject to the jurisdiction of the 
United States, the Coast Guard Captain of the Port designated by the 
Commandant of the Coast Guard in a maritime security command center 
described in subsection (a) shall act as the incident commander, unless 
otherwise directed by the President.
    ``(e) Rule of Construction.--Nothing in this section shall be 
construed to affect the normal command and control procedures for 
operational entities in the Department, unless so directed by the 
Secretary.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated $60,000,000 for each of the fiscal years 2007 through 2012 
to carry out this section.''.
    (b) Report Requirement.--Nothing in this section or the amendments 
made by this section relieves the Commandant of the Coast Guard from 
complying with the requirements of section 807 of the Coast Guard and 
Maritime Transportation Act of 2004 (Public Law 108-293; 118 Stat. 
1082). The Commandant shall utilize the information developed in making 
the report required by that section in carrying out the requirements of 
this section.
    (c) Budget and Cost-Sharing Analysis.--Not later than 180 days 
after the date of the enactment of this Act, the Secretary of the 
department in which the Coast Guard is operating shall submit to the 
appropriate congressional committees a proposed budget analysis for 
implementing section 70107A of title 46, United States Code, as added 
by subsection (a), including cost-sharing arrangements with other 
Federal departments and agencies involved in the interagency operation 
of the centers to be established under such section.
    (d) Clerical Amendment.--The chapter analysis for chapter 701 of 
title 46, United States Code, is amended by inserting after the item 
relating to section 70107 the following:

``70107A. Interagency operational centers for port security''.
    SEC. 109. NOTICE OF ARRIVAL FOR FOREIGN VESSELS ON THE OUTER 
      CONTINENTAL SHELF.
    (a) Notice of Arrival.--Not later than 180 days after the date of 
the enactment of this Act, the Secretary of the department in which the 
Coast Guard is operating shall update and finalize the rulemaking on 
notice of arrival for foreign vessels on the Outer Continental Shelf.
    (b) Content of Regulations.--The regulations promulgated pursuant 
to subsection (a) shall be consistent with information required under 
the Notice of Arrival under section 160.206 of title 33, Code of 
Federal Regulations, as in effect on the date of the enactment of this 
Act.
    SEC. 110. ENHANCED CREWMEMBER IDENTIFICATION.
    Section 70111 of title 46, United States Code, is amended--
        (1) in subsection (a) by striking ``The'' and inserting ``Not 
    later than 1 year after the date of enactment of the SAFE Port Act, 
    the''; and
        (2) in subsection (b) by striking ``The'' and inserting ``Not 
    later than 1 year after the date of enactment of the SAFE Port Act, 
    the''.

    Subtitle B--Port Security Grants; Training and Exercise Programs

    SEC. 111. RISK ASSESSMENT TOOL.
    In updating Area Maritime Security Plans required under section 
70103(b)(2)(F) of title 46, United States Code, and in applying for 
grants under section 70107 of such title, the Secretary of the 
Department in which the Coast Guard is operating shall make available, 
and Area Maritime Security Committees may use a risk assessment tool 
that uses standardized risk criteria, such as the Maritime Security 
Risk Assessment Tool used by the Coast Guard.
    SEC. 112. PORT SECURITY GRANTS.
    (a) Basis for Grants.--Section 70107(a) of title 46, United States 
Code, is amended by striking ``for making a fair and equitable 
allocation of funds'' and inserting ``for the allocation of funds based 
on risk''.
    (b) Eligible Uses.--Section 70107(b) of title 46, United States 
Code, is amended--
        (1) in paragraph (2), by inserting after ``crewmembers.'' the 
    following: ``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) $1,000,000 per project; or
            ``(B) such greater amount as may be approved by the 
        Secretary, which may not exceed 10 percent of the total amount 
        of the grant.''; and
        (2) by adding at the end the following:
        ``(5) The cost of conducting exercises or training for 
    prevention and detection of, preparedness for, response to, or 
    recovery from terrorist attacks.
        ``(6) The cost of establishing or enhancing mechanisms for 
    sharing terrorism threat information and ensuring that the 
    mechanisms are interoperable with Federal, State, and local 
    agencies.
        ``(7) The cost of equipment (including software) required to 
    receive, transmit, handle, and store classified information.''.
    (c) Multiple-Year Projects, Etc.--Section 70107 of title 46, United 
States Code, is amended--
        (1) by redesignating subsections (e), (f), (g), (h), and (i) as 
    subsections (i), (j), (k), (l), and (m), respectively, and by 
    inserting after subsection (d) the following:
    ``(e) Multiple-Year Projects.--
        ``(1) Letters of intent.--The Secretary may execute letters of 
    intent to commit funding to such authorities, operators, and 
    agencies.
        ``(2) Limitation.--Not more than 20 percent of the grant funds 
    awarded under this subsection in any fiscal year may be awarded for 
    projects that span multiple years.
    ``(f) Consistency With Plans.--The Secretary shall ensure that each 
grant awarded under subsection (e)--
        ``(1) is used to supplement and support, in a consistent and 
    coordinated manner, the applicable Area Maritime Transportation 
    Security Plan; and
        ``(2) is coordinated with any applicable State or Urban Area 
    Homeland Security Plan.
    ``(g) Applications.--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.
    ``(h) Reports.--Not later than 180 days after the date of the 
enactment of the SAFE Port Act, the Secretary, acting through the 
Commandant of the Coast Guard, shall submit a report to Congress, in a 
secure format, describing the methodology used to allocate port 
security grant funds on the basis of risk.''; and
        (2) in subsection (i)(1), as redesignated, by striking 
    ``program'' and inserting ``Secretary''.
    (d) Authorization of Appropriations.--Section 70107(l) of title 46, 
United States Code, as redesignated, is amended to read as follows:
    ``(l) Authorization of Appropriations.--There are authorized to be 
appropriated $400,000,000 for each of the fiscal years 2007 through 
2011 to carry out this section.''.
    (e) Basis for Grants.--Section 70107(a) of title 46, United States 
Code, is amended by striking ``national economic and strategic defense 
concerns'' and inserting ``national economic, energy, and strategic 
defense concerns based upon the most current risk assessments 
available''.
    SEC. 113. PORT SECURITY TRAINING PROGRAM.
    (a) In General.--The Secretary, acting through the Under Secretary 
for Preparedness and in coordination with the Commandant of the Coast 
Guard, shall establish a Port Security Training Program (referred to in 
this section as the ``Training Program'') for the purpose of enhancing 
the capabilities of each facility required to submit a plan under 
section 70103(c) of title 46, United States Code, to prevent, prepare 
for, respond to, mitigate against, and recover from threatened or 
actual acts of terrorism, natural disasters, and other emergencies.
    (b) Requirements.--The Training Program shall provide validated 
training that--
        (1) reaches multiple disciplines, including Federal, State, and 
    local government officials, commercial seaport personnel and 
    management, and governmental and nongovernmental emergency response 
    providers;
        (2) provides training at the awareness, performance, and 
    management and planning levels;
        (3) utilizes multiple training mediums and methods;
        (4) addresses port security topics, including--
            (A) facility security plans and procedures, including how 
        security plans and procedures are adjusted when threat levels 
        increase;
            (B) facility security force operations and management;
            (C) physical security and access control at facilities;
            (D) methods of security for preventing and countering cargo 
        theft;
            (E) container security;
            (F) recognition and detection of weapons, dangerous 
        substances, and devices;
            (G) operation and maintenance of security equipment and 
        systems;
            (H) security threats and patterns;
            (I) security incident procedures, including procedures for 
        communicating with governmental and nongovernmental emergency 
        response providers; and
            (J) evacuation procedures;
        (5) is consistent with, and supports implementation of, the 
    National Incident Management System, the National Response Plan, 
    the National Infrastructure Protection Plan, the National 
    Preparedness Guidance, the National Preparedness Goal, the National 
    Maritime Transportation Security Plan, and other such national 
    initiatives;
        (6) is evaluated against clear and consistent performance 
    measures;
        (7) addresses security requirements under facility security 
    plans; and
        (8) educates, trains, and involves individuals in neighborhoods 
    around facilities required to submit a plan under section 70103(c) 
    of title 46, United States Code, on how to observe and report 
    security risks.
    (c) Vessel and Facility Security Plans.--Section 70103(c)(3) of 
title 46, United States Code, is amended--
        (1) by redesignating subparagraphs (F), (G), and (H) (as added 
    by section 102(1)(D)) as subparagraphs (G), (H), and (I), 
    respectively; and
        (2) by inserting after subparagraph (E) the following:
        ``(F) provide a strategy and timeline for conducting training 
    and periodic unannounced drills;''.
    (d) Consultation.--The Secretary shall ensure that, in carrying out 
the Program, the Office of Grants and Training shall consult with 
commercial seaport personnel and management.
    (e) Training Partners.--In developing and delivering training under 
the Training Program, the Secretary, in coordination with the Maritime 
Administration 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; and
        (2) utilize, as appropriate, government training facilities, 
    courses provided by community colleges, public safety academies, 
    State and private universities, and other facilities.
    SEC. 114. PORT SECURITY EXERCISE PROGRAM.
    (a) In General.--The Secretary, acting through the Under Secretary 
for Preparedness and in coordination with the Commandant of the Coast 
Guard, shall establish a Port Security Exercise Program (referred to in 
this section as the ``Exercise Program'') for the purpose of testing 
and evaluating the capabilities of Federal, State, local, and foreign 
governments, commercial seaport personnel and management, governmental 
and nongovernmental emergency response providers, the private sector, 
or any other organization or entity, as the Secretary determines to be 
appropriate, to prevent, prepare for, mitigate against, respond to, and 
recover from acts of terrorism, natural disasters, and other 
emergencies at facilities required to submit a plan under section 
70103(c) of title 46, United States Code.
    (b) Requirements.--The Secretary shall ensure that the Exercise 
Program--
        (1) conducts, on a periodic basis, port security exercises at 
    such facilities that are--
            (A) scaled and tailored to the needs of each facility;
            (B) live, in the case of the most at-risk facilities;
            (C) as realistic as practicable and based on current risk 
        assessments, including credible threats, vulnerabilities, and 
        consequences;
            (D) consistent with the National Incident Management 
        System, the National Response Plan, the National Infrastructure 
        Protection Plan, the National Preparedness Guidance, the 
        National Preparedness Goal, the National Maritime 
        Transportation Security Plan, and other such national 
        initiatives;
            (E) evaluated against clear and consistent performance 
        measures;
            (F) assessed to learn best practices, which shall be shared 
        with appropriate Federal, State, and local officials, 
        commercial seaport personnel and management, governmental and 
        nongovernmental emergency response providers, and the private 
        sector; and
            (G) followed by remedial action in response to lessons 
        learned; and
        (2) assists State and local governments and facilities in 
    designing, implementing, and evaluating exercises that--
            (A) conform to the requirements of paragraph (1); and
            (B) are consistent with any applicable Area Maritime 
        Transportation Security Plan and State or Urban Area Homeland 
        Security Plan.
    (c) Improvement Plan.--The Secretary shall establish a port 
security exercise improvement plan process to--
        (1) identify and analyze each port security exercise for 
    lessons learned and best practices;
        (2) disseminate lessons learned and best practices to 
    participants in the Exercise Program;
        (3) monitor the implementation of lessons learned and best 
    practices by participants in the Exercise Program; and
        (4) conduct remedial action tracking and long-term trend 
    analysis.
    SEC. 115. FACILITY EXERCISE REQUIREMENTS.
    The Secretary of the Department in which the Coast Guard is 
operating shall require each high risk facility to conduct live or 
full-scale exercises described in section 105.220(c) of title 33, Code 
of Federal Regulations, not less frequently than once every 2 years, in 
accordance with the facility security plan required under section 
70103(c) of title 46, United States Code.

                      Subtitle C--Port Operations

    SEC. 121. DOMESTIC RADIATION DETECTION AND IMAGING.
    (a) Scanning Containers.--Subject to section 1318 of title 19, 
United States Code, not later than December 31, 2007, all containers 
entering the United States through the 22 ports through which the 
greatest volume of containers enter the United States by vessel shall 
be scanned for radiation. To the extent practicable, the Secretary 
shall deploy next generation radiation detection technology.
    (b) Strategy.--The Secretary shall develop a strategy for the 
deployment of radiation detection capabilities that includes--
        (1) a risk-based prioritization of ports of entry at which 
    radiation detection equipment will be deployed;
        (2) a proposed timeline of when radiation detection equipment 
    will be deployed at each port of entry identified under paragraph 
    (1);
        (3) the type of equipment to be used at each port of entry 
    identified under paragraph (1), including the joint deployment and 
    utilization of radiation detection equipment and nonintrusive 
    imaging equipment;
        (4) standard operating procedures for examining containers with 
    such equipment, including sensor alarming, networking, and 
    communications and response protocols;
        (5) operator training plans;
        (6) an evaluation of the environmental health and safety 
    impacts of nonintrusive imaging technology and a radiation risk 
    reduction plan, in consultation with the Nuclear Regulatory 
    Commission, the Occupational Safety and Health Administration, and 
    the National Institute for Occupational Safety and Health, that 
    seeks to minimize radiation exposure of workers and the public to 
    levels as low as reasonably achievable;
        (7) the policy of the Department for using nonintrusive imaging 
    equipment in tandem with radiation detection equipment; and
        (8) a classified annex that--
            (A) details plans for covert testing; and
            (B) outlines the risk-based prioritization of ports of 
        entry identified under paragraph (1).
    (c) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary shall submit the strategy developed under 
subsection (b) to the appropriate congressional committees.
    (d) Update.--Not later than 180 days after the date of the 
submission of the report under subsection (c), the Secretary shall 
provide a more complete evaluation under subsection (b)(6).
    (e) Other Weapons of Mass Destruction Threats.--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 on the 
feasibility of, and a strategy for, the development of equipment to 
detect and prevent shielded nuclear and radiological threat material 
and chemical, biological, and other weapons of mass destruction from 
entering the United States.
    (f) Standards.--The Secretary, acting through the Director for 
Domestic Nuclear Detection and in collaboration with the National 
Institute of Standards and Technology, shall publish technical 
capability standards and recommended standard operating procedures for 
the use of nonintrusive imaging and radiation detection equipment in 
the United States. Such standards and procedures--
        (1) should take into account relevant standards and procedures 
    utilized by other Federal departments or agencies as well as those 
    developed by international bodies; and
        (2) shall not be designed so as to endorse specific companies 
    or create sovereignty conflicts with participating countries.
    (g) Implementation.--Not later than 3 years after the date of the 
enactment of this Act, the Secretary shall fully implement the strategy 
developed under subsection (b).
    (h) Expansion to Other United States Ports of Entry.--
        (1) In general.--As soon as practicable after--
            (A) implementation of the program for the examination of 
        containers for radiation at ports of entry described in 
        subsection (a); and
            (B) submission of the strategy developed under subsection 
        (b) (and updating, if any, of that strategy under subsection 
        (c)),
    but not later than December 31, 2008, the Secretary shall expand 
    the strategy developed under subsection (b), in a manner consistent 
    with the requirements of subsection (b), to provide for the 
    deployment of radiation detection capabilities at all other United 
    States ports of entry not covered by the strategy developed under 
    subsection (b).
        (2) Risk assessment.--In expanding the strategy under paragraph 
    (1), the Secretary shall identify and assess the risks to those 
    other ports of entry in order to determine what equipment and 
    practices will best mitigate the risks.
    (i) Intermodal Rail Radiation Detection Test Center.--
        (1) Establishment.--In accordance with subsection (b), and in 
    order to comply with this section, the Secretary shall establish an 
    Intermodal Rail Radiation Detection Test Center (referred to in 
    this subsection as the ``Test Center'').
        (2) Projects.--The Secretary shall conduct multiple, concurrent 
    projects at the Test Center to rapidly identify and test concepts 
    specific to the challenges posed by on-dock rail.
        (3) Location.--The Test Center shall be located within a public 
    port facility at which a majority of the containerized cargo is 
    directly laden from (or unladen to) on-dock, intermodal rail.
    SEC. 122. INSPECTION OF CAR FERRIES ENTERING FROM ABROAD.
    Not later than 120 days after the date of the enactment of this 
Act, the Secretary, acting through the Commissioner, and in 
coordination with the Secretary of State and in cooperation with ferry 
operators and appropriate foreign government officials, shall seek to 
develop a plan for the inspection of passengers and vehicles before 
such passengers board, or such vehicles are loaded onto, a ferry bound 
for a United States facility required to submit a plan under section 
70103(c) of title 46, United States Code.
    SEC. 123. RANDOM SEARCHES OF CONTAINERS.
    Not later than 1 year after the date of the enactment of this Act, 
the Secretary, acting through the Commissioner, shall develop and 
implement a plan, utilizing best practices for empirical scientific 
research design and random sampling, to conduct random searches of 
containers in addition to any targeted or preshipment inspection of 
such containers required by law or regulation or conducted under any 
other program conducted by the Secretary. Nothing in this section shall 
be construed to mean that implementation of the random sampling plan 
precludes additional searches of containers not inspected pursuant to 
the plan.
    SEC. 124. WORK STOPPAGES AND EMPLOYEE-EMPLOYER DISPUTES.
    Section 70101(6) of title 46, United States Code, is amended by 
adding at the end the following: ``In this paragraph, the term 
`economic disruption' does not include a work stoppage or other 
employee-related action not related to terrorism and resulting from an 
employee-employer dispute.''.
    SEC. 125. THREAT ASSESSMENT SCREENING OF PORT TRUCK DRIVERS.
    Not later than 90 days after the date of the enactment of this Act, 
the Secretary shall implement a threat assessment screening, including 
name-based checks against terrorist watch lists and immigration status 
check, for all port truck drivers with access to secure areas of a port 
who have a commercial driver's license but do not have a current and 
valid hazardous materials endorsement issued in accordance with section 
1572 of title 49, Code of Federal Regulations, that is the same as the 
threat assessment screening required for facility employees and 
longshoremen by the Commandant of the Coast Guard under Coast Guard 
Notice USCG-2006-24189 (Federal Register, Vol. 71, No. 82, Friday, 
April 28, 2006).
    SEC. 126. BORDER PATROL UNIT FOR UNITED STATES VIRGIN ISLANDS.
    (a) In General.--The Secretary may establish at least 1 Border 
Patrol unit for the United States Virgin Islands.
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall submit a report to the 
appropriate congressional committees that includes the schedule, if 
any, for carrying out subsection (a).
    SEC. 127. REPORT ON ARRIVAL AND DEPARTURE MANIFESTS FOR CERTAIN 
      COMMERCIAL VESSELS IN THE UNITED STATES VIRGIN ISLANDS.
    Not later than 90 days after the date of the enactment of this Act, 
the Secretary shall submit to the appropriate congressional committees 
a report on the impact of implementing the requirements of section 231 
of the Immigration and Nationality Act (8 U.S.C. 1221) (relating to 
providing United States border officers with arrival and departure 
manifests) with respect to commercial vessels that are fewer than 300 
gross tons and operate exclusively between the territorial waters of 
the United States Virgin Islands and the territorial waters of the 
British Virgin Islands.
    SEC. 128. CENTER OF EXCELLENCE FOR MARITIME DOMAIN AWARENESS.
    (a) Establishment.--The Secretary shall establish a university-
based Center for Excellence for Maritime Domain Awareness following the 
merit-review processes and procedures that have been established by the 
Secretary for selecting university program centers of excellence.
    (b) Duties.--The Center established under subsection (a) shall--
        (1) prioritize its activities based on the ``National Plan To 
    Improve Maritime Domain Awareness'' published by the Department in 
    October 2005;
        (2) recognize the extensive previous and ongoing work and 
    existing competence in the field of maritime domain awareness at 
    numerous academic and research institutions, such as the Naval 
    Postgraduate School;
        (3) leverage existing knowledge and continue development of a 
    broad base of expertise within academia and industry in maritime 
    domain awareness; and
        (4) provide educational, technical, and analytical assistance 
    to Federal agencies with responsibilities for maritime domain 
    awareness, including the Coast Guard, to focus on the need for 
    interoperability, information sharing, and common information 
    technology standards and architecture.

          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) Strategic Plan.--The Secretary, in consultation with 
appropriate Federal, State, local, and tribal government agencies and 
private sector stakeholders responsible for security matters that 
affect or relate to the movement of containers through the 
international supply chain, shall develop, implement, and update, as 
appropriate, a strategic plan to enhance the security of the 
international supply chain.
    (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.
    (c) Consultation.--In developing protocols under subsection 
(b)(10), the Secretary shall consult with Federal, State, local, and 
private sector stakeholders, including the National Maritime Security 
Advisory Committee and the Commercial Operations Advisory Committee.
    (d) Communication.--To the extent practicable, the strategic plan 
developed under subsection (a) shall provide for coordination with, and 
lines of communication among, appropriate Federal, State, local, and 
private-sector stakeholders on law enforcement actions, intermodal 
rerouting plans, and other strategic infrastructure issues resulting 
from a transportation security incident or transportation disruption.
    (e) Utilization of Advisory Committees.--As part of the 
consultations described in subsection (a), the Secretary shall, to the 
extent practicable, utilize the Homeland Security Advisory Committee, 
the National Maritime Security Advisory Committee, and the Commercial 
Operations Advisory Committee to review, as necessary, the draft 
strategic plan and any subsequent updates to the strategic plan.
    (f) International Standards and Practices.--In furtherance of the 
strategic plan required under subsection (a), the Secretary is 
encouraged to consider proposed or established standards and practices 
of foreign governments and international organizations, including the 
International Maritime Organization, the World Customs Organization, 
the International Labor Organization, and the International 
Organization for Standardization, as appropriate, to establish 
standards and best practices for the security of containers moving 
through the international supply chain.
    (g) Report.--
        (1) Initial report.--Not later than 270 days after the date of 
    the enactment of this Act, the Secretary shall submit to the 
    appropriate congressional committees a report that contains the 
    strategic plan required by subsection (a).
        (2) Final 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.
    SEC. 202. POST-INCIDENT RESUMPTION OF TRADE.
    (a) In General.--The Secretary shall develop and update, as 
necessary, protocols for the resumption of trade in accordance with 
section 201(b)(10) in the event of a transportation disruption or a 
transportation security incident. The protocols shall include--
        (1) the identification of the appropriate initial incident 
    commander, if the Commandant of the Coast Guard is not the 
    appropriate person, and lead departments, agencies, or offices to 
    execute such protocols;
        (2) a plan to redeploy resources and personnel, as necessary, 
    to reestablish the flow of trade;
        (3) a plan to provide training for the periodic instruction of 
    personnel of the United States Customs and Border Protection, the 
    Coast Guard, and the Transportation Security Administration in 
    trade resumption functions and responsibilities; and
        (4) appropriate factors for establishing prioritization of 
    vessels and cargo determined by the President to be critical for 
    response and recovery, including factors relating to public health, 
    national security, and economic need.
    (b) Vessels.--In determining the prioritization of vessels 
accessing facilities (as defined under section 70101 of title 46, 
United States Code), the Commandant of the Coast Guard may, to the 
extent practicable and consistent with the protocols and plans required 
under this section to ensure the safe and secure transit of vessels to 
ports in the United States after a transportation security incident, 
give priority to a vessel--
        (1) that has an approved security plan under section 70103(c) 
    of title 46, United States Code, or a valid international ship 
    security certificate, as provided under part 104 of title 33, Code 
    of Federal Regulations;
        (2) that is manned by individuals who are described in section 
    70105(b)(2)(B) of title 46, United States Code; and
        (3) that is operated by validated participants in the Customs-
    Trade Partnership Against Terrorism program.
    (c) Cargo.--In determining the prioritization of the resumption of 
the flow of cargo and consistent with the protocols established under 
this section, the Commissioner may give preference to cargo--
        (1) entering a port of entry directly from a foreign seaport 
    designated under the Container Security Initiative;
        (2) from the supply chain of a validated C-TPAT participant and 
    other private sector entities, as appropriate; or
        (3) that has undergone--
            (A) a nuclear or radiological detection scan;
            (B) an x-ray, density, or other imaging scan; and
            (C) a system to positively identify the container at the 
        last port of departure prior to arrival in the United States, 
        which data has been evaluated and analyzed by personnel of the 
        United States Customs and Border Protection.
    (d) Coordination.--The Secretary shall ensure that there is 
appropriate coordination among the Commandant of the Coast Guard, the 
Commissioner, and other Federal officials following a maritime 
disruption or maritime transportation security incident in order to 
provide for the resumption of trade.
    (e) Communication.--Consistent with section 201, the Commandant of 
the Coast Guard, Commissioner, and other appropriate Federal officials, 
shall promptly communicate any revised procedures or instructions 
intended for the private sector following a maritime disruption or 
maritime transportation security incident.
    SEC. 203. AUTOMATED TARGETING SYSTEM.
    (a) In General.--The Secretary, acting through the Commissioner, 
shall--
        (1) identify and seek the submission of data related to the 
    movement of a shipment of cargo through the international supply 
    chain; and
        (2) analyze the data described in paragraph (1) to identify 
    high-risk cargo for inspection.
    (b) Requirement.--The Secretary, acting through the Commissioner, 
shall require the electronic transmission to the Department of 
additional data elements for improved high-risk targeting, including 
appropriate security elements of entry data, as determined by the 
Secretary, to be provided as advanced information with respect to cargo 
destined for importation into the United States prior to loading of 
such cargo on vessels at foreign seaports.
    (c) Consideration.--The Secretary, acting through the Commissioner, 
shall--
        (1) consider the cost, benefit, and feasibility of--
            (A) requiring additional nonmanifest documentation;
            (B) reducing the time period allowed by law for revisions 
        to a container cargo manifest;
            (C) reducing the time period allowed by law for submission 
        of certain elements of entry data, for vessel or cargo; and
            (D) such other actions the Secretary considers beneficial 
        for improving the information relied upon for the Automated 
        Targeting System and any successor targeting system in 
        furthering the security and integrity of the international 
        supply chain; and
        (2) consult with stakeholders, including the Commercial 
    Operations Advisory Committee, and identify to them the need for 
    such information, and the appropriate timing of its submission.
    (d) Regulations.--The Secretary shall promulgate regulations to 
carry out this section. In promulgating such regulations, the Secretary 
shall adhere to the parameters applicable to the development of 
regulations under section 343(a) of the Trade Act of 2002 (19 U.S.C. 
2071 note), including provisions relating to consultation, technology, 
analysis, use of information, confidentiality, and timing requirements.
    (e) System Improvements.--The Secretary, acting through the 
Commissioner, shall--
        (1) conduct, through an independent panel, a review of the 
    effectiveness and capabilities of the Automated Targeting System;
        (2) consider future iterations of the Automated Targeting 
    System, which would incorporate smart features, such as more 
    complex algorithms and real-time intelligence, instead of relying 
    solely on rule sets that are periodically updated;
        (3) ensure that the Automated Targeting System has the 
    capability to electronically compare manifest and other available 
    data for cargo entered into or bound for the United States to 
    detect any significant anomalies between such data and facilitate 
    the resolution of such anomalies;
        (4) ensure that the Automated Targeting System has the 
    capability to electronically identify, compile, and compare select 
    data elements for cargo entered into or bound for the United States 
    following a maritime transportation security incident, in order to 
    efficiently identify cargo for increased inspection or expeditious 
    release; and
        (5) develop a schedule to address the recommendations of the 
    Comptroller General of the United States, the Inspector General of 
    the Department of the Treasury, and the Inspector General of the 
    Department with respect to the operation of the Automated Targeting 
    System.
    (f) Secure Transmission of Certain Information.--All information 
required by the Department from supply chain partners shall be 
transmitted in a secure fashion, as determined by the Secretary, so as 
to protect the information from unauthorized access.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the United States Customs and Border Protection to 
carry out the Automated Targeting System for identifying high-risk 
oceanborne container cargo for inspection--
        (1) $33,200,000 for fiscal year 2008;
        (2) $35,700,000 for fiscal year 2009; and
        (3) $37,485,000 for fiscal year 2010.
    SEC. 204. CONTAINER SECURITY STANDARDS AND PROCEDURES.
    (a) Establishment.--
        (1) In general.--Not later than 90 days after the date of the 
    enactment of this Act, the Secretary shall initiate a rulemaking 
    proceeding to establish minimum standards and procedures for 
    securing containers in transit to the United States.
        (2) Interim rule.--Not later than 180 days after the date of 
    the enactment of this Act, the Secretary shall issue an interim 
    final rule pursuant to the proceeding described in paragraph (1).
        (3) Missed deadline.--If the Secretary is unable to meet the 
    deadline established pursuant to paragraph (2), the Secretary shall 
    submit a letter to the appropriate congressional committees 
    explaining why the Secretary is unable to meet that deadline and 
    describing what must be done before such minimum standards and 
    procedures can be established.
        (4) Deadline for enforcement.--Not later than 2 years after the 
    date on which the standards and procedures are established pursuant 
    to paragraph (1), all containers bound for ports of entry in the 
    United States shall meet such standards and procedures.
    (b) Review and Enhancement.--The Secretary shall regularly review 
and enhance the standards and procedures established pursuant to 
subsection (a), as appropriate, based on tests of technologies as they 
become commercially available to detect container intrusion and the 
highest consequence threats, particularly weapons of mass destruction.
    (c) International Cargo Security Standards.--The Secretary, in 
consultation with the Secretary of State, the Secretary of Energy, and 
other Federal Government officials, as appropriate, and with the 
Commercial Operations Advisory Committee, the Homeland Security 
Advisory Committee, and the National Maritime Security Advisory 
Committee, is encouraged to promote and establish international 
standards for the security of containers moving through the 
international supply chain with foreign governments and international 
organizations, including the International Maritime Organization, the 
International Organization for Standardization, the International Labor 
Organization, and the World Customs Organization.
    (d) International Trade and Other Obligations.--In carrying out 
this section, the Secretary shall consult with appropriate Federal 
departments and agencies and private sector stakeholders and ensure 
that actions under this section do not violate international trade 
obligations or other international obligations of the United States.
    SEC. 205. CONTAINER SECURITY INITIATIVE.
    (a) Establishment.--The Secretary, acting through the Commissioner, 
shall establish and implement a program (referred to in this section as 
the ``Container Security Initiative'' or ``CSI'') to identify and 
examine or search maritime containers that pose a security risk before 
loading such containers in a foreign port for shipment to the United 
States, either directly or through a foreign port.
    (b) Assessment.--The Secretary, acting through the Commissioner, 
may designate foreign seaports to participate in the Container Security 
Initiative after the Secretary has assessed the costs, benefits, and 
other factors associated with such designation, including--
        (1) the level of risk for the potential compromise of 
    containers by terrorists, or other threats as determined by the 
    Secretary;
        (2) the volume of cargo being imported to the United States 
    directly from, or being transshipped through, the foreign seaport;
        (3) the results of the Coast Guard assessments conducted 
    pursuant to section 70108 of title 46, United States Code;
        (4) the commitment of the government of the country in which 
    the foreign seaport is located to cooperating with the Department 
    in sharing critical data and risk management information and to 
    maintain programs to ensure employee integrity; and
        (5) the potential for validation of security practices at the 
    foreign seaport by the Department.
    (c) Notification.--The Secretary shall notify the appropriate 
congressional committees of the designation of a foreign port under the 
Container Security Initiative or the revocation of such a designation 
before notifying the public of such designation or revocation.
    (d) Negotiations.--The Secretary, in cooperation with the Secretary 
of State and in consultation with the United States Trade 
Representative, may enter into negotiations with the government of each 
foreign nation in which a seaport is designated under the Container 
Security Initiative to ensure full compliance with the requirements 
under the Container Security Initiative.
    (e) Overseas Inspections.--
        (1) Requirements and procedures.--The Secretary shall--
            (A) establish minimum technical capability criteria and 
        standard operating procedures for the use of nonintrusive 
        inspection and nuclear and radiological detection systems in 
        conjunction with CSI;
            (B) require each port designated under CSI to operate 
        nonintrusive inspection and nuclear and radiological detection 
        systems in accordance with the technical capability criteria 
        and standard operating procedures established under 
        subparagraph (A);
            (C) continually monitor the technologies, processes, and 
        techniques used to inspect cargo at ports designated under CSI 
        to ensure adherence to such criteria and the use of such 
        procedures; and
            (D) consult with the Secretary of Energy in establishing 
        the minimum technical capability criteria and standard 
        operating procedures established under subparagraph (A) 
        pertaining to radiation detection technologies to promote 
        consistency in detection systems at foreign ports designated 
        under CSI.
        (2) Constraints.--The criteria and procedures established under 
    paragraph (1)(A)--
            (A) shall be consistent, as practicable, with relevant 
        standards and procedures utilized by other Federal departments 
        or agencies, or developed by international bodies if the United 
        States consents to such standards and procedures;
            (B) shall not apply to activities conducted under the 
        Megaports Initiative of the Department of Energy; and
            (C) shall not be designed to endorse the product or 
        technology of any specific company or to conflict with the 
        sovereignty of a country in which a foreign seaport designated 
        under the Container Security Initiative is located.
    (f) Savings Provision.--The authority of the Secretary under this 
section shall not affect any authority or duplicate any efforts or 
responsibilities of the Federal Government with respect to the 
deployment of radiation detection equipment outside of the United 
States.
    (g) Coordination.--The Secretary shall--
        (1) coordinate with the Secretary of Energy, as necessary, to 
    provide radiation detection equipment required to support the 
    Container Security Initiative through the Department of Energy's 
    Second Line of Defense Program and Megaports Initiative; or
        (2) work with the private sector or host governments, when 
    possible, to obtain radiation detection equipment that meets the 
    Department's and the Department of Energy's technical 
    specifications for such equipment.
    (h) Staffing.--The Secretary shall develop a human capital 
management plan to determine adequate staffing levels in the United 
States and in foreign seaports including, as appropriate, the remote 
location of personnel in countries in which foreign seaports are 
designated under the Container Security Initiative.
    (i) Annual Discussions.--The Secretary, in coordination with the 
appropriate Federal officials, shall hold annual discussions with 
foreign governments of countries in which foreign seaports designated 
under the Container Security Initiative are located regarding best 
practices, technical assistance, training needs, and technological 
developments that will assist in ensuring the efficient and secure 
movement of international cargo.
    (j) Lesser Risk Port.--The Secretary, acting through the 
Commissioner, may treat cargo loaded in a foreign seaport designated 
under the Container Security Initiative as presenting a lesser risk 
than similar cargo loaded in a foreign seaport that is not designated 
under the Container Security Initiative, for the purpose of clearing 
such cargo into the United States.
    (k) Prohibition.--
        (1) In general.--The Secretary shall issue a ``do not load'' 
    order, using existing authorities, to prevent the onload of any 
    cargo loaded at a port designated under CSI that has been 
    identified as high risk, including by the Automated Targeting 
    System, unless the cargo is determined to no longer be high risk 
    through--
            (A) a scan of the cargo with nonintrusive imaging equipment 
        and radiation detection equipment;
            (B) a search of the cargo; or
            (C) additional information received by the Department.
        (2) Rule of construction.--Nothing in this subsection shall be 
    construed to interfere with the ability of the Secretary to deny 
    entry of any cargo into the United States.
    (l) Report.--
        (1) In general.--Not later than September 30, 2007, the 
    Secretary, acting through the Commissioner, shall, in consultation 
    with other appropriate government officials and the Commercial 
    Operations Advisory Committee, submit a report to the appropriate 
    congressional committees on the effectiveness of, and the need for 
    any improvements to, the Container Security Initiative. The report 
    shall include--
            (A) a description of the technical assistance delivered to, 
        as well as needed at, each designated seaport;
            (B) a description of the human capital management plan at 
        each designated seaport;
            (C) a summary of the requests made by the United States to 
        foreign governments to conduct physical or nonintrusive 
        inspections of cargo at designated seaports, and whether each 
        such request was granted or denied by the foreign government;
            (D) an assessment of the effectiveness of screening, 
        scanning, and inspection protocols and technologies utilized at 
        designated seaports and the effect on the flow of commerce at 
        such seaports, as well as any recommendations for improving the 
        effectiveness of screening, scanning, and inspection protocols 
        and technologies utilized at designated seaports;
            (E) a description and assessment of the outcome of any 
        security incident involving a foreign seaport designated under 
        the Container Security Initiative;
            (F) the rationale for the continuance of each port 
        designated under CSI;
            (G) a description of the potential for remote targeting to 
        decrease the number of personnel who are deployed at foreign 
        ports under CSI; and
            (H) a summary and assessment of the aggregate number and 
        extent of trade compliance lapses at each seaport designated 
        under the Container Security Initiative.
        (2) Updated report.--Not later than September 30, 2010, the 
    Secretary, acting through the Commissioner, shall, in consultation 
    with other appropriate government officials and the Commercial 
    Operations Advisory Committee, submit an updated report to the 
    appropriate congressional committees on the effectiveness of, and 
    the need for any improvements to, the Container Security 
    Initiative. The updated report shall address each of the elements 
    required to be included in the report provided for under paragraph 
    (1).
    (m) Authorization of Appropriations.--There are authorized to be 
appropriated to the United States Customs and Border Protection to 
carry out the provisions of this section--
        (1) $144,000,000 for fiscal year 2008;
        (2) $146,000,000 for fiscal year 2009; and
        (3) $153,300,000 for fiscal year 2010.

        Subtitle B--Customs-Trade Partnership Against Terrorism

    SEC. 211. ESTABLISHMENT.
    (a) Establishment.--The Secretary, acting through the Commissioner, 
is authorized to establish a voluntary government-private sector 
program (to be known as the ``Customs-Trade Partnership Against 
Terrorism'' or ``C-TPAT'') to strengthen and improve the overall 
security of the international supply chain and United States border 
security, and to facilitate the movement of secure cargo through the 
international supply chain, by providing benefits to participants 
meeting or exceeding the program requirements. Participants in C-TPAT 
shall include Tier 1 participants, Tier 2 participants, and Tier 3 
participants.
    (b) Minimum Security Requirements.--The Secretary, acting through 
the Commissioner, shall review the minimum security requirements of C-
TPAT at least once every year and update such requirements as 
necessary.
    SEC. 212. ELIGIBLE ENTITIES.
    Importers, customs brokers, forwarders, air, sea, land carriers, 
contract logistics providers, and other entities in the international 
supply chain and intermodal transportation system are eligible to apply 
to voluntarily enter into partnerships with the Department under C-
TPAT.
    SEC. 213. MINIMUM REQUIREMENTS.
    An applicant seeking to participate in C-TPAT shall--
        (1) demonstrate a history of moving cargo in the international 
    supply chain;
        (2) conduct an assessment of its supply chain based upon 
    security criteria established by the Secretary, acting through the 
    Commissioner, including--
            (A) business partner requirements;
            (B) container security;
            (C) physical security and access controls;
            (D) personnel security;
            (E) procedural security;
            (F) security training and threat awareness; and
            (G) information technology security;
        (3) implement and maintain security measures and supply chain 
    security practices meeting security criteria established by the 
    Commissioner; and
        (4) meet all other requirements established by the 
    Commissioner, in consultation with the Commercial Operations 
    Advisory Committee.
    SEC. 214. TIER 1 PARTICIPANTS IN C-TPAT.
    (a) Benefits.--The Secretary, acting through the Commissioner, 
shall offer limited benefits to a Tier 1 participant who has been 
certified in accordance with the guidelines referred to in subsection 
(b). Such benefits may include a reduction in the score assigned 
pursuant to the Automated Targeting System of not greater than 20 
percent of the high-risk threshold established by the Secretary.
    (b) Guidelines.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary, acting through the Commissioner, 
shall update the guidelines for certifying a C-TPAT participant's 
security measures and supply chain security practices under this 
section. Such guidelines shall include a background investigation and 
extensive documentation review.
    (c) Timeframe.--To the extent practicable, the Secretary, acting 
through the Commissioner, shall complete the Tier 1 certification 
process within 90 days of receipt of an application for participation 
in C-TPAT.
    SEC. 215. TIER 2 PARTICIPANTS IN C-TPAT.
    (a) Validation.--The Secretary, acting through the Commissioner, 
shall validate the security measures and supply chain security 
practices of a Tier 1 participant in accordance with the guidelines 
referred to in subsection (c). Such validation shall include on-site 
assessments at appropriate foreign locations utilized by the Tier 1 
participant in its supply chain and shall, to the extent practicable, 
be completed not later than 1 year after certification as a Tier 1 
participant.
    (b) Benefits.--The Secretary, acting through the Commissioner, 
shall extend benefits to each C-TPAT participant that has been 
validated as a Tier 2 participant under this section, which may 
include--
        (1) reduced scores in the Automated Targeting System;
        (2) reduced examinations of cargo; and
        (3) priority searches of cargo.
    (c) Guidelines.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary, acting through the Commissioner, 
shall develop a schedule and update the guidelines for validating a 
participant's security measures and supply chain security practices 
under this section.
    SEC. 216. TIER 3 PARTICIPANTS IN C-TPAT.
    (a) In General.--The Secretary, acting through the Commissioner, 
shall establish a third tier of C-TPAT participation that offers 
additional benefits to participants who demonstrate a sustained 
commitment to maintaining security measures and supply chain security 
practices that exceed the guidelines established for validation as a 
Tier 2 participant in C-TPAT under section 215.
    (b) Criteria.--The Secretary, acting through the Commissioner, 
shall designate criteria for validating a C-TPAT participant as a Tier 
3 participant under this section. Such criteria may include--
        (1) compliance with any additional guidelines established by 
    the Secretary that exceed the guidelines established pursuant to 
    section 215 of this Act for validating a C-TPAT participant as a 
    Tier 2 participant, particularly with respect to controls over 
    access to cargo throughout the supply chain;
        (2) submission of additional information regarding cargo prior 
    to loading, as determined by the Secretary;
        (3) utilization of container security devices, technologies, 
    policies, or practices that meet standards and criteria established 
    by the Secretary; and
        (4) compliance with any other cargo requirements established by 
    the Secretary.
    (c) Benefits.--The Secretary, acting through the Commissioner, in 
consultation with the Commercial Operations Advisory Committee and the 
National Maritime Security Advisory Committee, shall extend benefits to 
each C-TPAT participant that has been validated as a Tier 3 participant 
under this section, which may include--
        (1) the expedited release of a Tier 3 participant's cargo in 
    destination ports within the United States during all threat levels 
    designated by the Secretary;
        (2) further reduction in examinations of cargo;
        (3) priority for examinations of cargo; and
        (4) further reduction in the risk score assigned pursuant to 
    the Automated Targeting System; and
        (5) inclusion in joint incident management exercises, as 
    appropriate.
    (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).
    SEC. 217. CONSEQUENCES FOR LACK OF COMPLIANCE.
    (a) In General.--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.
    (b) False or Misleading Information.--If a C-TPAT participant 
knowingly provides false or misleading information to the Commissioner 
during the validation process provided for under this subtitle, the 
Commissioner shall suspend or expel the participant from C-TPAT for an 
appropriate period of time. The Commissioner, after the completion of 
the process under subsection (c), may publish in the Federal Register a 
list of participants who have been suspended or expelled from C-TPAT 
pursuant to this subsection, and may make such list available to C-TPAT 
participants.
    (c) Right of Appeal.--
        (1) In general.--A C-TPAT participant may appeal a decision of 
    the Commissioner pursuant to subsection (a). Such appeal shall be 
    filed with the Secretary not later than 90 days after the date of 
    the decision, and the Secretary shall issue a determination not 
    later than 180 days after the appeal is filed.
        (2) Appeals of other decisions.--A C-TPAT participant may 
    appeal a decision of the Commissioner pursuant to subsection (b). 
    Such appeal shall be filed with the Secretary not later than 30 
    days after the date of the decision, and the Secretary shall issue 
    a determination not later than 180 days after the appeal is filed.
    SEC. 218. THIRD PARTY VALIDATIONS.
    (a) Plan.--The Secretary, acting through the Commissioner, shall 
develop a plan to implement a 1-year voluntary pilot program to test 
and assess the feasibility, costs, and benefits of using third party 
entities to conduct validations of C-TPAT participants.
    (b) Consultations.--Not later than 120 days after the date of the 
enactment of this Act, after consulting with private sector 
stakeholders, including the Commercial Operations Advisory Committee, 
the Secretary shall submit a report to the appropriate congressional 
committees on the plan described in subsection (a).
    (c) Pilot Program.--
        (1) In general.--Not later than 1 year after the consultations 
    described in subsection (b), the Secretary shall carry out the 1-
    year pilot program to conduct validations of C-TPAT participants 
    using third party entities described in subsection (a).
        (2) Authority of the secretary.--The decision to validate a C-
    TPAT participant is solely within the discretion of the Secretary, 
    or the Secretary's designee.
    (d) Certification of Third Party Entities.--The Secretary shall 
certify a third party entity to conduct validations under subsection 
(c) if the entity--
        (1) demonstrates to the satisfaction of the Secretary that the 
    entity has the ability to perform validations in accordance with 
    standard operating procedures and requirements designated by the 
    Secretary; and
        (2) agrees--
            (A) to perform validations in accordance with such standard 
        operating procedures and requirements (and updates to such 
        procedures and requirements); and
            (B) to maintain liability insurance coverage at policy 
        limits and in accordance with conditions to be established by 
        the Secretary; and
        (3) signs an agreement to protect all proprietary information 
    of C-TPAT participants with respect to which the entity will 
    conduct validations.
    (e) Information for Establishing Limits of Liability Insurance.--A 
third party entity seeking a certificate under subsection (d) shall 
submit to the Secretary necessary information for establishing the 
limits of liability insurance required to be maintained by the entity 
under this Act.
    (f) Additional Requirements.--The Secretary shall ensure that--
        (1) any third party entity certified under this section does 
    not have--
            (A) any beneficial interest in or any direct or indirect 
        control over the C-TPAT participant for which the validation 
        services are performed; or
            (B) any other conflict of interest with respect to the C-
        TPAT participant; and
        (2) the C-TPAT participant has entered into a contract with the 
    third party entity under which the C-TPAT participant agrees to pay 
    all costs associated with the validation.
    (g) Monitoring.--
        (1) In general.--The Secretary shall regularly monitor and 
    inspect the operations of a third party entity conducting 
    validations under subsection (c) to ensure that the entity is 
    meeting the minimum standard operating procedures and requirements 
    for the validation of C-TPAT participants established by the 
    Secretary and all other applicable requirements for validation 
    services.
        (2) Revocation.--If the Secretary determines that a third party 
    entity is not meeting the minimum standard operating procedures and 
    requirements designated by the Secretary under subsection (d)(1), 
    the Secretary shall--
            (A) revoke the entity's certificate of conformance issued 
        under subsection (d)(1); and
            (B) review any validations conducted by the entity.
    (h) Limitation on Authority.--The Secretary may only grant a C-TPAT 
validation by a third party entity pursuant to subsection (c) if the C-
TPAT participant voluntarily submits to validation by such third party 
entity.
    (i) Report.--Not later than 30 days after the completion of the 
pilot program conducted pursuant to subsection (c), the Secretary shall 
submit a report to the appropriate congressional committees that 
contains--
        (1) the results of the pilot program, including the extent to 
    which the pilot program ensured sufficient protection for 
    proprietary commercial information;
        (2) the cost and efficiency associated with validations under 
    the pilot program;
        (3) the impact of the pilot program on the rate of validations 
    conducted under C-TPAT;
        (4) any impact on national security of the pilot program; and
        (5) any recommendations by the Secretary based upon the results 
    of the pilot program.
    SEC. 219. REVALIDATION.
    The Secretary, acting through the Commissioner, shall develop and 
implement--
        (1) a revalidation process for Tier 2 and Tier 3 participants;
        (2) a framework based upon objective criteria for identifying 
    participants for periodic revalidation not less frequently than 
    once during each 4-year period following the initial validation; 
    and
        (3) an annual plan for revalidation that includes--
            (A) performance measures;
            (B) an assessment of the personnel needed to perform the 
        revalidations; and
            (C) the number of participants that will be revalidated 
        during the following year.
    SEC. 220. NONCONTAINERIZED CARGO.
    The Secretary, acting through the Commissioner, shall consider the 
potential for participation in C-TPAT by importers of noncontainerized 
cargoes that otherwise meet the requirements under this subtitle.
    SEC. 221. C-TPAT PROGRAM MANAGEMENT.
    (a) In General.--The Secretary, acting through the Commissioner, 
shall establish sufficient internal quality controls and record 
management to support the management systems of C-TPAT. In managing the 
program, the Secretary shall ensure that the program includes:
        (1) Strategic plan.--A 5-year plan to identify outcome-based 
    goals and performance measures of the program.
        (2) Annual plan.--An annual plan for each fiscal year designed 
    to match available resources to the projected workload.
        (3) Standardized work program.--A standardized work program to 
    be used by agency personnel to carry out the certifications, 
    validations, and revalidations of participants. The Secretary shall 
    keep records and monitor staff hours associated with the completion 
    of each such review.
    (b) Documentation of Reviews.--The Secretary, acting through the 
Commissioner, shall maintain a record management system to document 
determinations on the reviews of each C-TPAT participant, including 
certifications, validations, and revalidations.
    (c) Confidential Information Safeguards.--In consultation with the 
Commercial Operations Advisory Committee, the Secretary, acting through 
the Commissioner, shall develop and implement procedures to ensure the 
protection of confidential data collected, stored, or shared with 
government agencies or as part of the application, certification, 
validation, and revalidation processes.
    (d) Resource Management Staffing Plan.--The Secretary, acting 
through the Commissioner, shall--
        (1) develop a staffing plan to recruit and train staff 
    (including a formalized training program) to meet the objectives 
    identified in the strategic plan of the C-TPAT program; and
        (2) provide cross-training in postincident trade resumption for 
    personnel who administer the C-TPAT program.
    (e) Report to Congress.--In connection with the President's annual 
budget submission for the Department, the Secretary shall report to the 
appropriate congressional committees on the progress made by the 
Commissioner to certify, validate, and revalidate C-TPAT participants. 
Such report shall be due on the same date that the President's budget 
is submitted to the Congress.
    SEC. 222. ADDITIONAL PERSONNEL.
    For fiscal years 2008 and 2009, the Commissioner shall increase by 
not less than 50 the number of full-time personnel engaged in the 
validation and revalidation of C-TPAT participants (over the number of 
such personnel on the last day of the previous fiscal year), and shall 
provide appropriate training and support to such additional personnel.
    SEC. 223. AUTHORIZATION OF APPROPRIATIONS.
    (a) C-TPAT.--There are authorized to be appropriated to the United 
States Customs and Border Protection to carry out the provisions of 
sections 211 through 221 to remain available until expended--
        (1) $65,000,000 for fiscal year 2008;
        (2) $72,000,000 for fiscal year 2009; and
        (3) $75,600,000 for fiscal year 2010.
    (b) Additional Personnel.--In addition to any amounts otherwise 
appropriated to the United States Customs and Border Protection, there 
are authorized to be appropriated for the purpose of meeting the 
staffing requirement provided for in section 222, to remain available 
until expended--
        (1) $8,500,000 for fiscal year 2008;
        (2) $17,600,000 for fiscal year 2009;
        (3) $19,000,000 for fiscal year 2010;
        (4) $20,000,000 for fiscal year 2011; and
        (5) $21,000,000 for fiscal year 2012.

                  Subtitle C--Miscellaneous Provisions

    SEC. 231. PILOT INTEGRATED SCANNING SYSTEM.
    (a) Designations.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary shall designate 3 foreign seaports 
through which containers pass or are transshipped to the United States 
for the establishment of pilot integrated scanning systems that couple 
nonintrusive imaging equipment and radiation detection equipment. In 
making the designations under this subsection, the Secretary shall 
consider 3 distinct ports with unique features and differing levels of 
trade volume.
    (b) Coordination.--The Secretary shall--
        (1) coordinate with the Secretary of Energy, as necessary, to 
    provide radiation detection equipment through the Department of 
    Energy's Second Line of Defense and Megaports programs; or
        (2) work with the private sector or, when possible, host 
    governments to obtain radiation detection equipment that meets both 
    the Department's and the Department of Energy's technical 
    specifications for such equipment.
    (c) Pilot System Implementation.--Not later than 1 year after the 
date of the enactment of this Act, the Secretary shall achieve a full-
scale implementation of the pilot integrated scanning system at the 
ports designated under subsection (a), which--
        (1) shall scan all containers destined for the United States 
    that are loaded in such ports;
        (2) shall electronically transmit the images and information to 
    appropriate United States Government personnel in the country in 
    which the port is located or in the United States for evaluation 
    and analysis;
        (3) shall resolve every radiation alarm according to 
    established Department procedures;
        (4) shall utilize the information collected to enhance the 
    Automated Targeting System or other relevant programs;
        (5) shall store the information for later retrieval and 
    analysis; and
        (6) may provide an automated notification of questionable or 
    high-risk cargo as a trigger for further inspection by 
    appropriately trained personnel.
    (d) Report.--Not later than 180 days after achieving full-scale 
implementation under subsection (c), the Secretary, in consultation 
with the Secretary of State and, as appropriate, the Secretary of 
Energy, shall submit a report to the appropriate congressional 
committees, that includes--
        (1) an evaluation of the lessons derived from the pilot system 
    implemented under this subsection;
        (2) an analysis of the efficacy of the Automated Targeting 
    System or other relevant programs in utilizing the images captured 
    to examine high-risk containers;
        (3) an evaluation of the effectiveness of the integrated 
    scanning system in detecting shielded and unshielded nuclear and 
    radiological material;
        (4) an evaluation of software and other technologies that are 
    capable of automatically identifying potential anomalies in scanned 
    containers; and
        (5) an analysis of the need and feasibility of expanding the 
    integrated scanning system to other container security initiative 
    ports, including--
            (A) an analysis of the infrastructure requirements;
            (B) a projection of the effect on current average 
        processing speed of containerized cargo;
            (C) an evaluation of the scalability of the system to meet 
        both current and future forecasted trade flows;
            (D) the ability of the system to automatically maintain and 
        catalog appropriate data for reference and analysis in the 
        event of a transportation disruption;
            (E) an analysis of requirements, including costs, to 
        install and maintain an integrated scanning system;
            (F) the ability of administering personnel to efficiently 
        manage and utilize the data produced by a nonintrusive scanning 
        system;
            (G) the ability to safeguard commercial data generated by, 
        or submitted to, a nonintrusive scanning system; and
            (H) an assessment of the reliability of currently available 
        technology to implement an integrated scanning system.
    SEC. 232. SCREENING AND SCANNING OF CARGO CONTAINERS.
    (a) One Hundred Percent Screening of Cargo Containers and 100 
Percent Scanning of High-Risk Containers.--
        (1) Screening of cargo containers.--The Secretary shall ensure 
    that 100 percent of the cargo containers originating outside the 
    United States and unloaded at a United States seaport undergo a 
    screening to identify high-risk containers.
        (2) Scanning of high-risk containers.--The Secretary shall 
    ensure that 100 percent of the containers that have been identified 
    as high-risk under paragraph (1), or through other means, are 
    scanned or searched before such containers leave a United States 
    seaport facility.
    (b) Full-Scale Implementation.--The Secretary, in coordination with 
the Secretary of Energy and foreign partners, as appropriate, shall 
ensure integrated scanning systems are fully deployed to scan, using 
nonintrusive imaging equipment and radiation detection equipment, all 
containers entering the United States before such containers arrive in 
the United States as soon as possible, but not before the Secretary 
determines that the integrated scanning system--
        (1) meets the requirements set forth in section 231(c);
        (2) has a sufficiently low false alarm rate for use in the 
    supply chain;
        (3) is capable of being deployed and operated at ports 
    overseas;
        (4) is capable of integrating, as necessary, with existing 
    systems;
        (5) does not significantly impact trade capacity and flow of 
    cargo at foreign or United States ports; and
        (6) provides an automated notification of questionable or high-
    risk cargo as a trigger for further inspection by appropriately 
    trained personnel.
    (c) Report.--Not later than 6 months after the submission of a 
report under section 231(d), and every 6 months thereafter, the 
Secretary shall submit a report to the appropriate congressional 
committees describing the status of full-scale deployment under 
subsection (b) and the cost of deploying the system at each foreign 
port at which the integrated scanning systems are deployed.

SEC. 233. INTERNATIONAL COOPERATION AND COORDINATION.

    (a) Inspection Technology and Training.--
        (1) In general.--The Secretary, in coordination with the 
    Secretary of State, the Secretary of Energy, and appropriate 
    representatives of other Federal agencies, may provide technical 
    assistance, equipment, and training to facilitate the 
    implementation of supply chain security measures at ports 
    designated under the Container Security Initiative.
        (2) Acquisition and training.--Unless otherwise prohibited by 
    law, the Secretary may--
            (A) lease, loan, provide, or otherwise assist in the 
        deployment of nonintrusive inspection and radiation detection 
        equipment at foreign land and sea ports under such terms and 
        conditions as the Secretary prescribes, including 
        nonreimbursable loans or the transfer of ownership of 
        equipment; and
            (B) provide training and technical assistance for domestic 
        or foreign personnel responsible for operating or maintaining 
        such equipment.
    (b) Actions and Assistance for Foreign Ports and United States 
Territories.--Section 70110 of title 46, United States Code, is 
amended--
        (1) by striking the section header and inserting the following:

``Sec. 70110. Actions and assistance for foreign ports and United 
            States territories'';

    and
        (2) by adding at the end the following:
    ``(e) Assistance for Foreign Ports and United States Territories.--
        ``(1) In general.--The Secretary, in consultation with the 
    Secretary of Transportation, the Secretary of State, and the 
    Secretary of Energy, shall identify assistance programs that could 
    facilitate implementation of port security antiterrorism measures 
    in foreign countries and territories of the United States. The 
    Secretary shall establish a program to utilize the programs that 
    are capable of implementing port security antiterrorism measures at 
    ports in foreign countries and territories of the United States 
    that the Secretary finds to lack effective antiterrorism measures.
        ``(2) Caribbean basin.--The Secretary, in coordination with the 
    Secretary of State and in consultation with the Organization of 
    American States and the Commandant of the Coast Guard, shall place 
    particular emphasis on utilizing programs to facilitate the 
    implementation of port security antiterrorism measures at the ports 
    located in the Caribbean Basin, as such ports pose unique security 
    and safety threats to the United States due to--
            ``(A) the strategic location of such ports between South 
        America and the United States;
            ``(B) the relative openness of such ports; and
            ``(C) the significant number of shipments of narcotics to 
        the United States that are moved through such ports.''.
    (c) Report on Security at Ports in the Caribbean Basin.--
        (1) In general.--Not later than 180 days after the date of the 
    enactment of this Act, the Comptroller General of the United States 
    shall submit a report to the appropriate congressional committees 
    on the security of ports in the Caribbean Basin.
        (2) Contents.--The report submitted under paragraph (1)--
            (A) shall include--
                (i) an assessment of the effectiveness of the measures 
            employed to improve security at ports in the Caribbean 
            Basin and recommendations for any additional measures to 
            improve such security;
                (ii) an estimate of the number of ports in the 
            Caribbean Basin that will not be secured by January 1, 
            2007;
                (iii) an estimate of the financial impact in the United 
            States of any action taken pursuant to section 70110 of 
            title 46, United States Code, that affects trade between 
            such ports and the United States; and
                (iv) an assessment of the additional resources and 
            program changes that are necessary to maximize security at 
            ports in the Caribbean Basin; and
            (B) may be submitted in both classified and redacted 
        formats.
    (d) Clerical Amendment.--The chapter analysis for chapter 701 of 
title 46, United States Code, is amended by striking the item relating 
to section 70110 and inserting the following:

``70110. Actions and assistance for foreign ports and United States 
          territories.''.

SEC. 234. FOREIGN PORT ASSESSMENTS.

    Section 70108 of title 46, United States Code, is amended by adding 
at the end the following:
    ``(d) Periodic Reassessment.--The Secretary, acting through the 
Commandant of the Coast Guard, shall reassess the effectiveness of 
antiterrorism measures maintained at ports as described under 
subsection (a) and of procedures described in subsection (b) not less 
than once every 3 years.''.
    SEC. 235. PILOT PROGRAM TO IMPROVE THE SECURITY OF EMPTY 
      CONTAINERS.
    (a) In General.--The Secretary shall conduct a 1-year pilot program 
to assess the risk posed by and improve the security of empty 
containers at United States seaports to ensure the safe and secure 
delivery of cargo and to prevent potential acts of terrorism involving 
such containers. The pilot program shall include the use of visual 
searches of empty containers at United States seaports.
    (b) Report.--Not later than 90 days after the completion of the 
pilot program under paragraph (1), the Secretary shall prepare and 
submit to the appropriate congressional committees a report that 
contains--
        (1) the results of the pilot program; and
        (2) the determination of the Secretary on whether to expand the 
    pilot program.
    SEC. 236. INFORMATION SHARING RELATING TO SUPPLY CHAIN SECURITY 
      COOPERATION.
    (a) Purposes.--The purposes of this section are--
        (1) to establish continuing liaison and to provide for supply 
    chain security cooperation between Department and the private 
    sector; and
        (2) to provide for regular and timely interchange of 
    information between the private sector and the Department 
    concerning developments and security risks in the supply chain 
    environment.
    (b) System.--The Secretary shall develop a system to collect from 
and share appropriate risk information related to the supply chain with 
the private sector entities determined appropriate by the Secretary.
    (c) Consultation.--In developing the system under subsection (b), 
the Secretary shall consult with the Commercial Operations Advisory 
Committee and a broad range of public and private sector entities 
likely to utilize the system, including importers, exporters, carriers, 
customs brokers, and freight forwarders, among other parties.
    (d) Independently Obtained Information.--Nothing in this section 
shall be construed to limit or otherwise affect the ability of a 
Federal, State, or local government entity, under applicable law, to 
obtain supply chain security information, including any information 
lawfully and properly disclosed generally or broadly to the public and 
to use such information in any manner permitted by law.
    (e) Authority To Issue Warnings.--The Secretary may provide 
advisories, alerts, and warnings to relevant companies, targeted 
sectors, other governmental entities, or the general public regarding 
potential risks to the supply chain as appropriate. In issuing a 
warning, the Secretary shall take appropriate actions to protect from 
disclosure--
        (1) the source of any voluntarily submitted supply chain 
    security information that forms the basis for the warning; and
        (2) information that is proprietary, business sensitive, 
    relates specifically to the submitting person or entity, or is 
    otherwise not appropriately in the public domain.

                       TITLE III--ADMINISTRATION

    SEC. 301. OFFICE OF CARGO SECURITY POLICY.
    (a) Establishment.--Subtitle C of title IV of the Homeland Security 
Act of 2002 (6 U.S.C. 231 et seq.) is amended by adding at the end the 
following:
    ``SEC. 431. OFFICE OF CARGO SECURITY POLICY.
    ``(a) Establishment.--There is established within the Department an 
Office of Cargo Security Policy (referred to in this section as the 
`Office').
    ``(b) Purpose.--The Office shall--
        ``(1) coordinate all Department policies relating to cargo 
    security; and
        ``(2) consult with stakeholders and coordinate with other 
    Federal agencies in the establishment of standards and regulations 
    and to promote best practices.
    ``(c) Director.--
        ``(1) Appointment.--The Office shall be headed by a Director, 
    who shall--
            ``(A) be appointed by the Secretary; and
            ``(B) report to the Assistant Secretary for Policy.
        ``(2) Responsibilities.--The Director shall--
            ``(A) advise the Assistant Secretary for Policy in the 
        development of Department-wide policies regarding cargo 
        security;
            ``(B) coordinate all policies relating to cargo security 
        among the agencies and offices within the Department relating 
        to cargo security; and
            ``(C) coordinate the cargo security policies of the 
        Department with the policies of other executive agencies.''.
    (b) Designation of Liaison Office of Department of State.--The 
Secretary of State shall designate a liaison office within the 
Department of State to assist the Secretary, as appropriate, in 
negotiating cargo security-related international agreements.
    (c) Rule of Construction.--Nothing in this section shall be 
construed to affect--
        (1) the authorities, functions, or capabilities of the Coast 
    Guard to perform its missions; or
        (2) the requirement under section 888 of the Homeland Security 
    Act (6 U.S.C. 468) that those authorities, functions, and 
    capabilities be maintained intact.
    (d) Clerical Amendment.--The table of contents of the Homeland 
Security Act of 2002 (6 U.S.C. 101 et seq.) is amended by inserting 
after the item relating to section 430 the following:

``Sec. 431. Office of Cargo Security Policy.''.
    SEC. 302. REAUTHORIZATION OF HOMELAND SECURITY SCIENCE AND 
      TECHNOLOGY ADVISORY COMMITTEE.
    (a) In General.--Section 311(j) of the Homeland Security Act of 
2002 (6 U.S.C. 191(j)) is amended by striking ``3 years after the 
effective date of this Act'' and inserting ``on December 31, 2008''.
    (b) Effective Date.--The amendment made by subsection (a) shall be 
effective as if enacted on the date of the enactment of the Homeland 
Security Act of 2002 (6 U.S.C. 101 et seq.).
    (c) Advisory Committee.--The Under Secretary for Science and 
Technology shall utilize the Homeland Security Science and Technology 
Advisory Committee, as appropriate, to provide outside expertise in 
advancing cargo security technology.
    SEC. 303. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION EFFORTS IN 
      FURTHERANCE OF MARITIME AND CARGO SECURITY.
    (a) In General.--The Secretary shall--
        (1) direct research, development, testing, and evaluation 
    efforts in furtherance of maritime and cargo security;
        (2) coordinate with public and private sector entities to 
    develop and test technologies, and process innovations in 
    furtherance of these objectives; and
        (3) evaluate such technologies.
    (b) Coordination.--The Secretary, in coordination with the Under 
Secretary for Science and Technology, the Assistant Secretary for 
Policy, the Commandant of the Coast Guard, the Director for Domestic 
Nuclear Detection, the Chief Financial Officer, and the heads of other 
appropriate offices or entities of the Department, shall ensure that--
        (1) research, development, testing, and evaluation efforts 
    funded by the Department in furtherance of maritime and cargo 
    security are coordinated within the Department and with other 
    appropriate Federal agencies to avoid duplication of efforts; and
        (2) the results of such efforts are shared throughout the 
    Department and with other Federal, State, and local agencies, as 
    appropriate.

                TITLE IV--AGENCY RESOURCES AND OVERSIGHT

    SEC. 401. TRADE AND CUSTOMS REVENUE FUNCTIONS OF THE DEPARTMENT.
    (a) Trade and Customs Revenue Functions.--
        (1) Designation of appropriate official.--The Secretary shall 
    designate an appropriate senior official in the office of the 
    Secretary who shall--
            (A) ensure that the trade and customs revenue functions of 
        the Department are coordinated within the Department and with 
        other Federal departments and agencies, and that the impact on 
        legitimate trade is taken into account in any action impacting 
        the functions; and
            (B) monitor and report to Congress on the Department's 
        mandate to ensure that the trade and customs revenue functions 
        of the Department are not diminished, including how spending, 
        operations, and personnel related to these functions have kept 
        pace with the level of trade entering the United States.
        (2) Director of trade policy.--There shall be a Director of 
    Trade Policy (in this subsection referred to as the ``Director''), 
    who shall be subject to the direction and control of the official 
    designated pursuant to paragraph (1). The Director shall--
            (A) advise the official designated pursuant to paragraph 
        (1) regarding all aspects of Department policies relating to 
        the trade and customs revenue functions of the Department;
            (B) coordinate the development of Department-wide policies 
        regarding trade and customs revenue functions and trade 
        facilitation; and
            (C) coordinate the trade and customs revenue-related 
        policies of the Department with the policies of other Federal 
        departments and agencies.
    (b) Study; Report.--
        (1) In general.--The Comptroller General of the United States 
    shall conduct a study evaluating the extent to which the Department 
    of Homeland Security is meeting its obligations under section 
    412(b) of the Homeland Security Act of 2002 (6 U.S.C. 212(b)) with 
    respect to the maintenance of customs revenue functions.
        (2) Analysis.--The study shall include an analysis of--
            (A) the extent to which the customs revenue functions 
        carried out by the former United States Customs Service have 
        been consolidated with other functions of the Department 
        (including the assignment of noncustoms revenue functions to 
        personnel responsible for customs revenue collection), 
        discontinued, or diminished following the transfer of the 
        United States Customs Service to the Department;
            (B) the extent to which staffing levels or resources 
        attributable to customs revenue functions have decreased since 
        the transfer of the United States Customs Service to the 
        Department; and
            (C) the extent to which the management structure created by 
        the Department ensures effective trade facilitation and customs 
        revenue collection.
        (3) Report.--Not later than 180 days after the date of the 
    enactment of this Act, the Comptroller General shall submit to the 
    appropriate congressional committees a report on the results of the 
    study conducted under subsection (a).
        (4) Maintenance of functions.--Not later than September 30, 
    2007, the Secretary shall ensure that the requirements of section 
    412(b) of the Homeland Security Act of 2002 (6 U.S.C. 212(b)) are 
    fully satisfied and shall report to the Committee on Finance of the 
    Senate and the Committee on Ways and Means of the House of 
    Representatives regarding implementation of this paragraph.
        (5) Definition.--In this section, the term ``customs revenue 
    functions'' means the functions described in section 412(b)(2) of 
    the Homeland Security Act of 2002 (6 U.S.C. 212(b)(2)).
    (c) Consultation on Trade and Customs Revenue Functions.--
        (1) Business community consultations.--The Secretary shall 
    consult with representatives of the business community involved in 
    international trade, including seeking the advice and 
    recommendations of the Commercial Operations Advisory Committee, on 
    Department policies and actions that have a significant impact on 
    international trade and customs revenue functions.
        (2) Congressional consultation and notification.--
            (A) In general.--Subject to subparagraph (B), the Secretary 
        shall notify the appropriate congressional committees not later 
        than 30 days prior to the finalization of any Department 
        policies, initiatives, or actions that will have a major impact 
        on trade and customs revenue functions. Such notifications 
        shall include a description of the proposed policies, 
        initiatives, or actions and any comments or recommendations 
        provided by the Commercial Operations Advisory Committee and 
        other relevant groups regarding the proposed policies, 
        initiatives, or actions.
            (B) Exception.--If the Secretary determines that it is 
        important to the national security interest of the United 
        States to finalize any Department policies, initiatives, or 
        actions prior to the consultation described in subparagraph 
        (A), the Secretary shall--
                (i) notify and provide any recommendations of the 
            Commercial Operations Advisory Committee received to the 
            appropriate congressional committees not later than 45 days 
            after the date on which the policies, initiatives, or 
            actions are finalized; and
                (ii) to the extent appropriate, modify the policies, 
            initiatives, or actions based upon the consultations with 
            the appropriate congressional committees.
    (d) Notification of Reorganization of Customs Revenue Functions.--
        (1) In general.--Not less than 45 days prior to any change in 
    the organization of any of the customs revenue functions of the 
    Department, the Secretary shall notify the Committee on 
    Appropriations, the Committee on Finance, and the Committee on 
    Homeland Security and Governmental Affairs of the Senate, and the 
    Committee on Appropriations, the Committee on Homeland Security, 
    and the Committee on Ways and Means of the House of Representatives 
    of the specific assets, functions, or personnel to be transferred 
    as part of such reorganization, and the reason for such transfer. 
    The notification shall also include--
            (A) an explanation of how trade enforcement functions will 
        be impacted by the reorganization;
            (B) an explanation of how the reorganization meets the 
        requirements of section 412(b) of the Homeland Security Act of 
        2002 (6 U.S.C. 212(b)) that the Department not diminish the 
        customs revenue and trade facilitation functions formerly 
        performed by the United States Customs Service; and
            (C) any comments or recommendations provided by the 
        Commercial Operations Advisory Committee regarding such 
        reorganization.
        (2) Analysis.--Any congressional committee referred to in 
    paragraph (1) may request that the Commercial Operations Advisory 
    Committee provide a report to the committee analyzing the impact of 
    the reorganization and providing any recommendations for modifying 
    the reorganization.
        (3) Report.--Not later than 1 year after any reorganization 
    referred to in paragraph (1) takes place, the Secretary, in 
    consultation with the Commercial Operations Advisory Committee, 
    shall submit a report to the Committee on Finance of the Senate and 
    the Committee on Ways and Means of the House of Representatives. 
    Such report shall include an assessment of the impact of, and any 
    suggested modifications to, such reorganization.
    SEC. 402. OFFICE OF INTERNATIONAL TRADE; OVERSIGHT.
    Section 2 of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 
19 U.S.C. 2072), is amended by adding at the end the following:
    ``(d) Office of International Trade.--
        ``(1) Establishment.--There is established within the United 
    States Customs and Border Protection an Office of International 
    Trade that shall be headed by an Assistant Commissioner.
        ``(2) Transfer of assets, functions, and personnel; elimination 
    of offices.--
            ``(A) Office of strategic trade.--
                ``(i) In general.--Not later than 90 days after the 
            date of the enactment of the SAFE Port Act, the 
            Commissioner shall transfer the assets, functions, and 
            personnel of the Office of Strategic Trade to the Office of 
            International Trade established pursuant to paragraph (1) 
            and the Office of Strategic Trade shall be abolished.
                ``(ii) Limitation on funds.--No funds appropriated to 
            the United States Customs and Border Protection may be used 
            to transfer the assets, functions, or personnel of the 
            Office of Strategic Trade, to an office other than the 
            office established pursuant to paragraph (1) of this 
            subsection.
            ``(B) Office of regulations and rulings.--
                ``(i) In general.--Not later than 90 days after the 
            date of the enactment of the SAFE Port Act, the 
            Commissioner shall transfer the assets, functions, and 
            personnel of the Office of Regulations and Rulings to the 
            Office of International Trade established pursuant to 
            paragraph (1) and the Office of Regulations and Rulings 
            shall be abolished.
                ``(ii) Limitation on funds.--No funds appropriated to 
            the United States Customs and Border Protection may be used 
            to transfer the assets, functions, or personnel of the 
            Office of Regulations and Rulings, to an office other than 
            the office established pursuant to paragraph (1) of this 
            subsection.
            ``(C) Other transfers.--The Commissioner is authorized to 
        transfer any other assets, functions, or personnel within the 
        United States Customs and Border Protection to the Office of 
        International Trade established pursuant to paragraph (1). Not 
        less than 45 days prior to each such transfer, the Commissioner 
        shall notify the Committee on Appropriations, the Committee on 
        Finance, and the Committee on Homeland Security and 
        Governmental Affairs of the Senate and the Committee on 
        Appropriations, the Committee on Homeland Security, and the 
        Committee on Ways and Means of the House of Representatives of 
        the specific assets, functions, or personnel to be transferred, 
        and the reason for such transfer. Such notification shall also 
        include--
                ``(i) an explanation of how trade enforcement functions 
            will be impacted by the reorganization;
                ``(ii) an explanation of how the reorganization meets 
            the requirements of section 412(b) of the Homeland Security 
            Act of 2002 (6 U.S.C. 212(b)) that the Department of 
            Homeland Security not diminish the customs revenue and 
            trade facilitation functions formerly performed by the 
            United States Customs Service; and
                ``(iii) any comments or recommendations provided by the 
            Commercial Operations Advisory Committee regarding such 
            reorganization.
            ``(D) Report.--Not later than 1 year after any 
        reorganization pursuant to subparagraph (C) takes place, the 
        Commissioner, in consultation with the Commercial Operations 
        Advisory Committee, shall report to the Committee on Finance of 
        the Senate and the Committee on Ways and Means of the House of 
        Representatives. Such report shall include an assessment of the 
        impact of, and any suggested modifications to, such 
        reorganization.
            ``(E) Limitation on authority.--Notwithstanding any other 
        provision of law, the Commissioner shall not transfer any 
        assets, functions, or personnel from United States ports of 
        entry, associated with the enforcement of laws relating to 
        trade in textiles and apparel, to the Office of International 
        Trade established pursuant to paragraph (1), until the 
        following conditions are met:
                ``(i) The Commissioner submits the initial Resource 
            Allocation Model required by section 301(h) of the Customs 
            and Procedural Reform and Simplification Act of 1978 (19 
            U.S.C. 2075) and includes in such Resource Allocation Model 
            a section addressing the allocation of assets, functions, 
            and personnel associated with the enforcement of laws 
            relating to trade in textiles and apparel.
                ``(ii) The Commissioner consults with the Committee on 
            Finance of the Senate and the Committee on Ways and Means 
            of the House of Representatives regarding any subsequent 
            transfer of assets, functions, or personnel associated with 
            the enforcement of laws relating to trade in textiles and 
            apparel, not less than 45 days prior to such transfer.
            ``(F) Limitation on appropriations.--No funds appropriated 
        to the United States Customs and Border Protection may be used 
        to transfer the assets, functions, or personnel associated with 
        the enforcement of laws relating to trade in textiles and 
        apparel, before the Commissioner consults with the 
        congressional committees pursuant to subparagraph (E)(ii).
    ``(e) International Trade Committee.--
        ``(1) Establishment.--The Commissioner shall establish an 
    International Trade Committee, to be chaired by the Commissioner, 
    and to include the Deputy Commissioner, the Assistant Commissioner 
    in the Office of Field Operations, the Assistant Commissioner in 
    the Office of Finance, the Assistant Commissioner in the Office of 
    International Affairs, the Assistant Commissioner in the Office of 
    International Trade, the Director of the Office of Trade Relations, 
    and any other official determined by the Commissioner to be 
    important to the work of the Committee.
        ``(2) Responsibilities.--The International Trade Committee 
    shall--
            ``(A) be responsible for advising the Commissioner with 
        respect to the commercial customs and trade facilitation 
        functions of the United States Customs and Border Protection;
            ``(B) assist the Commissioner in coordinating with the 
        Secretary regarding commercial customs and trade facilitation 
        functions; and
            ``(C) oversee the operation of all programs and systems 
        that are involved in the assessment and collection of duties, 
        bonds, and other charges or penalties associated with the entry 
        of cargo into the United States, or the export of cargo from 
        the United States, including the administration of duty 
        drawback and the collection of antidumping and countervailing 
        duties.
        ``(3) Annual report.--Not later than 30 days after the end of 
    each fiscal year, the International Trade Committee shall submit a 
    report to the Committee on Finance of the Senate and the Committee 
    on Ways and Means of the House of Representatives. The report 
    shall--
            ``(A) detail the activities of the International Trade 
        Committee during the preceding fiscal year; and
            ``(B) identify the priorities of the International Trade 
        Committee for the fiscal year in which the report is filed.
    ``(f) Definition.--In this section:
        ``(1) Commissioner.--The term `Commissioner' means the 
    Commissioner responsible for the United States Customs and Border 
    Protection in the Department of Homeland Security.
        ``(2) Commercial operations advisory committee.--The term 
    `Commercial Operations Advisory Committee' means the Advisory 
    Committee established pursuant to section 9503(c) of the Omnibus 
    Budget Reconciliation Act of 1987 (19 U.S.C. 2071 note) or any 
    successor committee.''.
    SEC. 403. RESOURCES.
    Section 301 of the Customs Procedural Reform and Simplification Act 
of 1978 (19 U.S.C. 2075) is amended by adding at the end the following:
    ``(h) Resource Allocation Model.--
        ``(1) Resource allocation model.--Not later than June 30, 2007, 
    and every 2 years thereafter, the Commissioner shall prepare and 
    submit to the Committee on Finance of the Senate and the Committee 
    on Ways and Means of the House of Representatives a Resource 
    Allocation Model to determine the optimal staffing levels required 
    to carry out the commercial operations of United States Customs and 
    Border Protection, including commercial inspection and release of 
    cargo and the revenue functions described in section 412(b)(2) of 
    the Homeland Security Act of 2002 (6 U.S.C. 212(b)(2)). The Model 
    shall comply with the requirements of section 412(b)(1) of such Act 
    and shall take into account previous staffing models, historic and 
    projected trade volumes, and trends. The Resource Allocation Model 
    shall apply both risk-based and random sampling approaches for 
    determining adequate staffing needs for priority trade functions, 
    including--
            ``(A) performing revenue functions;
            ``(B) enforcing antidumping and countervailing duty laws;
            ``(C) protecting intellectual property rights;
            ``(D) enforcing provisions of law relating to trade in 
        textiles and apparel;
            ``(E) conducting agricultural inspections;
            ``(F) enforcing fines, penalties, and forfeitures; and
            ``(G) facilitating trade.
        ``(2) Personnel.--
            ``(A) In general.--Not later than September 30, 2007, the 
        Commissioner shall ensure that the requirements of section 
        412(b) of the Homeland Security Act of 2002 (6 U.S.C. 212(b)) 
        are fully satisfied and shall report to the Committee on 
        Finance of the Senate and the Committee on Ways and Means of 
        the House of Representatives regarding the implementation of 
        this subparagraph.
            ``(B) Customs and border protection officers.--The initial 
        Resource Allocation Model required pursuant to paragraph (1) 
        shall provide for the hiring of a minimum of 200 additional 
        Customs and Border Protection Officers per year for each of the 
        fiscal years 2008 through 2012. The Commissioner shall hire 
        such additional Officers subject to the appropriation of funds 
        to pay for the salaries and expenses of such Officers. In 
        assigning the 1,000 additional Officers authorized by this 
        subparagraph, the Commissioner shall--
                ``(i) consider the volume of trade and the incidence of 
            nonvoluntarily disclosed customs and trade law violations 
            in addition to security priorities among United States 
            ports of entry; and
                ``(ii) before October 1, 2010, assign at least 10 
            additional Officers among each service port and the ports 
            of entry serviced by such service port, except as provided 
            in subparagraph (C).
            ``(C) Assignment.--In assigning such Officers pursuant to 
        subparagraph (B), the Commissioner shall consult with the port 
        directors of each service port and the other ports of entry 
        serviced by such service port. The Commissioner shall not 
        assign an Officer to a port of entry pursuant to subparagraph 
        (B)(ii) if the port director of the service port that services 
        such port of entry certifies to the Commissioner that an 
        additional Officer is not needed at such port of entry.
            ``(D) Report.--Not later than 60 days after the beginning 
        of each of the fiscal years 2008 through 2012, the Commissioner 
        shall submit a report to the Committee on Finance of the 
        Senate, the Committee on Homeland Security and Governmental 
        Affairs of the Senate, the Committee on Homeland Security of 
        the House of Representatives, and the Committee on Ways and 
        Means of the House of Representatives, that describes how the 
        additional Officers authorized under subparagraph (B) will be 
        allocated among the ports of entry in the United States in 
        accordance with subparagraph (C).
        ``(3) Authorization of appropriations.--In addition to any 
    monies hereafter appropriated to United States Customs and Border 
    Protection in the Department of Homeland Security, there are 
    authorized to be appropriated for the purpose of meeting the 
    requirements of paragraph (2)(B), to remain available until 
    expended--
            ``(A) $36,000,000 for fiscal year 2008;
            ``(B) $75,000,000 for fiscal year 2009;
            ``(C) $118,000,000 for fiscal year 2010;
            ``(D) $165,000,000 for fiscal year 2011; and
            ``(E) $217,000,000 for fiscal year 2012.
        ``(4) Report.--Not later than 30 days after the end of each 
    fiscal year, the Commissioner shall report to the Committee on 
    Finance of the Senate and the Committee on Ways and Means of the 
    House of Representatives on the resources directed to commercial 
    and trade facilitation functions within the Office of Field 
    Operations for the preceding fiscal year. Such information shall be 
    reported for each category of personnel within the Office of Field 
    Operations.
        ``(5) Regulations to implement trade agreements.--Not later 
    than 30 days after the date of the enactment of the SAFE Port Act, 
    the Commissioner shall designate and maintain not less than 5 
    attorneys within the Office of International Trade established 
    pursuant to section 2 of the Act of March 3, 1927 (44 Stat. 1381, 
    chapter 348; 19 U.S.C. 2072), with responsibility for the prompt 
    development and promulgation of regulations necessary to implement 
    any trade agreement entered into by the United States, in addition 
    to any other responsibilities assigned by the Commissioner.
        ``(6) Definition.--In this subsection, the term `Commissioner' 
    means the Commissioner responsible for United States Customs and 
    Border Protection in the Department of Homeland Security.''.
    SEC. 404. NEGOTIATIONS.
    Section 629 of the Tariff Act of 1930 (19 U.S.C. 1629) is amended 
by adding at the end the following:
    ``(h) Customs Procedures and Commitments.--
        ``(1) In general.--The Secretary of Homeland Security, the 
    United States Trade Representative, and other appropriate Federal 
    officials shall work through appropriate international 
    organizations including the World Customs Organization (WCO), the 
    World Trade Organization (WTO), the International Maritime 
    Organization, and the Asia-Pacific Economic Cooperation, to align, 
    to the extent practicable, customs procedures, standards, 
    requirements, and commitments in order to facilitate the efficient 
    flow of international trade.
        ``(2) United states trade representative.--
            ``(A) In general.--The United States Trade Representative 
        shall seek commitments in negotiations in the WTO regarding the 
        articles of GATT 1994 that are described in subparagraph (B) 
        that make progress in achieving--
                ``(i) harmonization of import and export data collected 
            by WTO members for customs purposes, to the extent 
            practicable;
                ``(ii) enhanced procedural fairness and transparency 
            with respect to the regulation of imports and exports by 
            WTO members;
                ``(iii) transparent standards for the efficient release 
            of cargo by WTO members, to the extent practicable; and
                ``(iv) the protection of confidential commercial data.
            ``(B) Articles described.--The articles of the GATT 1994 
        described in this subparagraph are the following:
                ``(i) Article V (relating to transit).
                ``(ii) Article VIII (relating to fees and formalities 
            associated with importation and exportation).
                ``(iii) Article X (relating to publication and 
            administration of trade regulations).
            ``(C) GATT 1994.--The term `GATT 1994' means the General 
        Agreement on Tariff and Trade annexed to the WTO Agreement.
        ``(3) Customs.--The Secretary of Homeland Security, acting 
    through the Commissioner and in consultation with the United States 
    Trade Representative, shall work with the WCO to facilitate the 
    efficient flow of international trade, taking into account existing 
    international agreements and the negotiating objectives of the WTO. 
    The Commissioner shall work to--
            ``(A) harmonize, to the extent practicable, import data 
        collected by WCO members for customs purposes;
            ``(B) automate and harmonize, to the extent practicable, 
        the collection and storage of commercial data by WCO members;
            ``(C) develop, to the extent practicable, transparent 
        standards for the release of cargo by WCO members;
            ``(D) develop and harmonize, to the extent practicable, 
        standards, technologies, and protocols for physical or 
        nonintrusive examinations that will facilitate the efficient 
        flow of international trade; and
            ``(E) ensure the protection of confidential commercial 
        data.
        ``(4) Definition.--In this subsection, the term `Commissioner' 
    means the Commissioner responsible for the United States Customs 
    and Border Protection in the Department of Homeland Security.''.
    SEC. 405. INTERNATIONAL TRADE DATA SYSTEM.
    Section 411 of the Tariff Act of 1930 (19 U.S.C. 1411) is amended 
by adding at the end the following:
    ``(d) International Trade Data System.--
        ``(1) Establishment.--
            ``(A) In general.--The Secretary of the Treasury (in this 
        subsection, referred to as the `Secretary') shall oversee the 
        establishment of an electronic trade data interchange system to 
        be known as the `International Trade Data System' (ITDS). The 
        ITDS shall be implemented not later than the date that the 
        Automated Commercial Environment (commonly referred to as 
        `ACE') is fully implemented.
            ``(B) Purpose.--The purpose of the ITDS is to eliminate 
        redundant information requirements, to efficiently regulate the 
        flow of commerce, and to effectively enforce laws and 
        regulations relating to international trade, by establishing a 
        single portal system, operated by the United States Customs and 
        Border Protection, for the collection and distribution of 
        standard electronic import and export data required by all 
        participating Federal agencies.
            ``(C) Participation.--
                ``(i) In general.--All Federal agencies that require 
            documentation for clearing or licensing the importation and 
            exportation of cargo shall participate in the ITDS.
                ``(ii) Waiver.--The Director of the Office of 
            Management and Budget may waive, in whole or in part, the 
            requirement for participation for any Federal agency based 
            on the vital national interest of the United States.
            ``(D) Consultation.--The Secretary shall consult with and 
        assist the United States Customs and Border Protection and 
        other agencies in the transition from paper to electronic 
        format for the submission, issuance, and storage of documents 
        relating to data required to enter cargo into the United 
        States. In so doing, the Secretary shall also consult with 
        private sector stakeholders, including the Commercial 
        Operations Advisory Committee, in developing uniform data 
        submission requirements, procedures, and schedules, for the 
        ITDS.
            ``(E) Coordination.--The Secretary shall be responsible for 
        coordinating the operation of the ITDS among the participating 
        agencies and the office within the United States Customs and 
        Border Protection that is responsible for maintaining the ITDS.
        ``(2) Data elements.--
            ``(A) In general.--The Interagency Steering Committee 
        (established under paragraph (3)) shall, in consultation with 
        the agencies participating in the ITDS, define the standard set 
        of data elements to be collected, stored, and shared in the 
        ITDS, consistent with laws applicable to the collection and 
        protection of import and export information. The Interagency 
        Steering Committee shall periodically review the data elements 
        in order to update the standard set of data elements, as 
        necessary.
            ``(B) Commitments and obligations.--The Interagency 
        Steering Committee shall ensure that the ITDS data requirements 
        are compatible with the commitments and obligations of the 
        United States as a member of the World Customs Organization 
        (WCO) and the World Trade Organization (WTO) for the entry and 
        movement of cargo.
        ``(3) Interagency steering committee.--There is established an 
    Interagency Steering Committee (in this section, referred to as the 
    `Committee'). The members of the Committee shall include the 
    Secretary (who shall serve as the chairperson of the Committee), 
    the Director of the Office of Management and Budget, and the head 
    of each agency participating in the ITDS. The Committee shall 
    assist the Secretary in overseeing the implementation of, and 
    participation in, the ITDS.
        ``(4) Report.--The President shall submit a report before the 
    end of each fiscal year to the Committee on Finance of the Senate 
    and the Committee on Ways and Means of the House of 
    Representatives. Each report shall include information on--
            ``(A) the status of the ITDS implementation;
            ``(B) the extent of participation in the ITDS by Federal 
        agencies;
            ``(C) the remaining barriers to any agency's participation;
            ``(D) the consistency of the ITDS with applicable standards 
        established by the World Customs Organization and the World 
        Trade Organization;
            ``(E) recommendations for technological and other 
        improvements to the ITDS; and
            ``(F) the status of the development, implementation, and 
        management of the Automated Commercial Environment within the 
        United States Customs and Border Protection.
        ``(5) Sense of congress.--It is the sense of Congress that 
    agency participation in the ITDS is an important priority of the 
    Federal Government and that the Secretary shall coordinate the 
    operation of the ITDS closely among the participating agencies and 
    the office within the United States Customs and Border Protection 
    that is responsible for maintaining the ITDS.
        ``(6) Construction.--Nothing in this section shall be construed 
    as amending or modifying subsection (g) of section 301 of title 13, 
    United States Code.
        ``(7) Definition.--The term `Commercial Operations Advisory 
    Committee' means the Advisory Committee established pursuant to 
    section 9503(c) of the Omnibus Budget Reconciliation Act of 1987 
    (19 U.S.C. 2071 note) or any successor committee.''.
    SEC. 406. IN-BOND CARGO.
    Title IV of the Tariff Act of 1930 is amended by inserting after 
section 553 the following:
    ``SEC. 553A. REPORT ON IN-BOND CARGO.
    ``(a) Report.--Not later than June 30, 2007, the Commissioner shall 
submit a report to the Committee on Commerce, Science, and 
Transportation of the Senate, the Committee on Finance of the Senate, 
the Committee on Homeland Security and Governmental Affairs of the 
Senate, the Committee on Homeland Security of the House of 
Representatives, the Committee on Transportation and Infrastructure of 
the House of Representatives, and the Committee on Ways and Means of 
the House of Representatives that includes--
        ``(1) a plan for closing in-bond entries at the port of 
    arrival;
        ``(2) an assessment of the personnel required to ensure 100 
    percent reconciliation of in-bond entries between the port of 
    arrival and the port of destination or exportation;
        ``(3) an assessment of the status of investigations of overdue 
    in-bond shipments and an evaluation of the resources required to 
    ensure adequate investigation of overdue in-bond shipments;
        ``(4) a plan for tracking in-bond cargo within the Automated 
    Commercial Environment (ACE);
        ``(5) an assessment of whether any particular technologies 
    should be required in the transport of in-bond cargo;
        ``(6) an assessment of whether ports of arrival should require 
    any additional information regarding shipments of in-bond cargo;
        ``(7) an evaluation of the criteria for targeting and examining 
    in-bond cargo; and
        ``(8) an assessment of the feasibility of reducing the transit 
    time for in-bond shipments, including an assessment of the impact 
    of such a change on domestic and international trade.
    ``(b) Definition.--In this section, the term `Commissioner' means 
the Commissioner responsible for the United States Customs and Border 
Protection in the Department of Homeland Security.''.
    SEC. 407. SENSE OF THE SENATE.
    It is the sense of the Senate that nothing in sections 111 through 
114, 121, and 201 through 236, or the amendments made by such sections, 
shall be construed to affect the jurisdiction of any Standing Committee 
of the Senate.

               TITLE V--DOMESTIC NUCLEAR DETECTION OFFICE

    SEC. 501. ESTABLISHMENT OF DOMESTIC NUCLEAR DETECTION OFFICE.
    (a) Establishment of Office.--The Homeland Security Act of 2002 (6 
U.S.C. 101 et seq.) is amended by adding at the end the following:

            ``TITLE XVIII--DOMESTIC NUCLEAR DETECTION OFFICE

    ``SEC. 1801. DOMESTIC NUCLEAR DETECTION OFFICE.
    ``(a) Establishment.--There shall be established in the Department 
a Domestic Nuclear Detection Office (referred to in this title as the 
`Office'). The Secretary may request that the Secretary of Defense, the 
Secretary of Energy, the Secretary of State, the Attorney General, the 
Nuclear Regulatory Commission, and the directors of other Federal 
agencies, including elements of the Intelligence Community, provide for 
the reimbursable detail of personnel with relevant expertise to the 
Office.
    ``(b) Director.--The Office shall be headed by a Director for 
Domestic Nuclear Detection, who shall be appointed by the President.
    ``SEC. 1802. MISSION OF OFFICE.
    ``(a) Mission.--The Office shall be responsible for coordinating 
Federal efforts to detect and protect against the unauthorized 
importation, possession, storage, transportation, development, or use 
of a nuclear explosive device, fissile material, or radiological 
material in the United States, and to protect against attack using such 
devices or materials against the people, territory, or interests of the 
United States and, to this end, shall--
        ``(1) serve as the primary entity of the United States 
    Government to further develop, acquire, and support the deployment 
    of an enhanced domestic system to detect and report on attempts to 
    import, possess, store, transport, develop, or use an unauthorized 
    nuclear explosive device, fissile material, or radiological 
    material in the United States, and improve that system over time;
        ``(2) enhance and coordinate the nuclear detection efforts of 
    Federal, State, local, and tribal governments and the private 
    sector to ensure a managed, coordinated response;
        ``(3) establish, with the approval of the Secretary and in 
    coordination with the Attorney General, the Secretary of Defense, 
    and the Secretary of Energy, additional protocols and procedures 
    for use within the United States to ensure that the detection of 
    unauthorized nuclear explosive devices, fissile material, or 
    radiological material is promptly reported to the Attorney General, 
    the Secretary, the Secretary of Defense, the Secretary of Energy, 
    and other appropriate officials or their respective designees for 
    appropriate action by law enforcement, military, emergency 
    response, or other authorities;
        ``(4) develop, with the approval of the Secretary and in 
    coordination with the Attorney General, the Secretary of State, the 
    Secretary of Defense, and the Secretary of Energy, an enhanced 
    global nuclear detection architecture with implementation under 
    which--
            ``(A) the Office will be responsible for the implementation 
        of the domestic portion of the global architecture;
            ``(B) the Secretary of Defense will retain responsibility 
        for implementation of Department of Defense requirements within 
        and outside the United States; and
            ``(C) the Secretary of State, the Secretary of Defense, and 
        the Secretary of Energy will maintain their respective 
        responsibilities for policy guidance and implementation of the 
        portion of the global architecture outside the United States, 
        which will be implemented consistent with applicable law and 
        relevant international arrangements;
        ``(5) ensure that the expertise necessary to accurately 
    interpret detection data is made available in a timely manner for 
    all technology deployed by the Office to implement the global 
    nuclear detection architecture;
        ``(6) conduct, support, coordinate, and encourage an 
    aggressive, expedited, evolutionary, and transformational program 
    of research and development to generate and improve technologies to 
    detect and prevent the illicit entry, transport, assembly, or 
    potential use within the United States of a nuclear explosive 
    device or fissile or radiological material, and coordinate with the 
    Under Secretary for Science and Technology on basic and advanced or 
    transformational research and development efforts relevant to the 
    mission of both organizations;
        ``(7) carry out a program to test and evaluate technology for 
    detecting a nuclear explosive device and fissile or radiological 
    material, in coordination with the Secretary of Defense and the 
    Secretary of Energy, as appropriate, and establish performance 
    metrics for evaluating the effectiveness of individual detectors 
    and detection systems in detecting such devices or material--
            ``(A) under realistic operational and environmental 
        conditions; and
            ``(B) against realistic adversary tactics and 
        countermeasures;
        ``(8) support and enhance the effective sharing and use of 
    appropriate information generated by the intelligence community, 
    law enforcement agencies, counterterrorism community, other 
    government agencies, and foreign governments, as well as provide 
    appropriate information to such entities;
        ``(9) further enhance and maintain continuous awareness by 
    analyzing information from all Office mission-related detection 
    systems; and
        ``(10) perform other duties as assigned by the Secretary.
    ``SEC. 1803. HIRING AUTHORITY.
    ``In hiring personnel for the Office, the Secretary shall have the 
hiring and management authorities provided in section 1101 of the Strom 
Thurmond National Defense Authorization Act for Fiscal Year 1999 (5 
U.S.C. 3104 note). The term of appointments for employees under 
subsection (c)(1) of such section may not exceed 5 years before 
granting any extension under subsection (c)(2) of such section.
    ``SEC. 1804. TESTING AUTHORITY.
    ``(a) In General.--The Director shall coordinate with the 
responsible Federal agency or other entity to facilitate the use by the 
Office, by its contractors, or by other persons or entities, of 
existing Government laboratories, centers, ranges, or other testing 
facilities for the testing of materials, equipment, models, computer 
software, and other items as may be related to the missions identified 
in section 1802. Any such use of Government facilities shall be carried 
out in accordance with all applicable laws, regulations, and 
contractual provisions, including those governing security, safety, and 
environmental protection, including, when applicable, the provisions of 
section 309. The Office may direct that private sector entities 
utilizing Government facilities in accordance with this section pay an 
appropriate fee to the agency that owns or operates those facilities to 
defray additional costs to the Government resulting from such use.
    ``(b) Confidentiality of Test Results.--The results of tests 
performed with services made available shall be confidential and shall 
not be disclosed outside the Federal Government without the consent of 
the persons for whom the tests are performed.
    ``(c) Fees.--Fees for services made available under this section 
shall not exceed the amount necessary to recoup the direct and indirect 
costs involved, such as direct costs of utilities, contractor support, 
and salaries of personnel that are incurred by the United States to 
provide for the testing.
    ``(d) Use of Fees.--Fees received for services made available under 
this section may be credited to the appropriation from which funds were 
expended to provide such services.
    ``SEC. 1805. RELATIONSHIP TO OTHER DEPARTMENT ENTITIES AND FEDERAL 
      AGENCIES.
    ``The authority of the Director under this title shall not affect 
the authorities or responsibilities of any officer of the Department or 
of any officer of any other department or agency of the United States 
with respect to the command, control, or direction of the functions, 
personnel, funds, assets, and liabilities of any entity within the 
Department or any Federal department or agency.
    ``SEC. 1806. CONTRACTING AND GRANT MAKING AUTHORITIES.
    ``The Secretary, acting through the Director for Domestic Nuclear 
Detection, in carrying out the responsibilities under paragraphs (6) 
and (7) of section 1802(a), shall--
        ``(1) operate extramural and intramural programs and distribute 
    funds through grants, cooperative agreements, and other 
    transactions and contracts;
        ``(2) ensure that activities under paragraphs (6) and (7) of 
    section 1802(a) include investigations of radiation detection 
    equipment in configurations suitable for deployment at seaports, 
    which may include underwater or water surface detection equipment 
    and detection equipment that can be mounted on cranes and straddle 
    cars used to move shipping containers; and
        ``(3) have the authority to establish or contract with 1 or 
    more federally funded research and development centers to provide 
    independent analysis of homeland security issues and carry out 
    other responsibilities under this title.''.
    (b) Technical and Conforming Amendments.--The Homeland Security Act 
of 2002 (6 U.S.C. 101 et seq.) is amended--
        (1) in section 103(d) (6 U.S.C. 113(d)), by adding at the end 
    the following:
        ``(5) A Director for Domestic Nuclear Detection.'';
        (2) in section 302 (6 U.S.C. 182)--
            (A) in paragraph (2), by striking ``radiological, 
        nuclear''; and
            (B) in paragraph (5)(A), by striking ``radiological, 
        nuclear''; and
        (3) in the table of contents, by adding at the end the 
    following:

            ``TITLE XVIII--DOMESTIC NUCLEAR DETECTION OFFICE

``Sec. 1801. Domestic Nuclear Detection Office.
``Sec. 1802. Mission of Office.
``Sec. 1803. Hiring authority.
``Sec. 1804. Testing authority.
``Sec. 1805. Relationship to other Department entities and Federal 
          agencies.
``Sec. 1806. Contracting and grant making authorities.''.
    SEC. 502. TECHNOLOGY RESEARCH AND DEVELOPMENT INVESTMENT STRATEGY 
      FOR NUCLEAR AND RADIOLOGICAL DETECTION.
    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary, the Secretary of Energy, the 
Secretary of Defense, and the Director of National Intelligence shall 
submit to Congress a research and development investment strategy for 
nuclear and radiological detection.
    (b) Contents.--The strategy under subsection (a) shall include--
        (1) a long term technology roadmap for nuclear and radiological 
    detection applicable to the mission needs of the Department, the 
    Department of Energy, the Department of Defense, and the Office of 
    the Director of National Intelligence;
        (2) budget requirements necessary to meet the roadmap; and
        (3) documentation of how the Department, the Department of 
    Energy, the Department of Defense, and the Office of the Director 
    of National Intelligence will execute this strategy.
    (c) Initial Report.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary shall submit a report to the 
appropriate congressional committees on--
        (1) the impact of this title, and the amendments made by this 
    title, on the responsibilities under section 302 of the Homeland 
    Security Act of 2002 (6 U.S.C. 182); and
        (2) the efforts of the Department to coordinate, integrate, and 
    establish priorities for conducting all basic and applied research, 
    development, testing, and evaluation of technology and systems to 
    detect, prevent, protect, and respond to chemical, biological, 
    radiological, and nuclear terrorist attacks.
    (d) Annual Report.--The Director for Domestic Nuclear Detection and 
the Under Secretary for Science and Technology shall jointly and 
annually notify Congress that the strategy and technology road map for 
nuclear and radiological detection developed under subsections (a) and 
(b) is consistent with the national policy and strategic plan for 
identifying priorities, goals, objectives, and policies for 
coordinating the Federal Government's civilian efforts to identify and 
develop countermeasures to terrorist threats from weapons of mass 
destruction that are required under section 302(2) of the Homeland 
Security Act of 2002 (6 U.S.C. 182(2)).

               TITLE VI--COMMERCIAL MOBILE SERVICE ALERTS

    SEC. 601. SHORT TITLE.
    This title may be cited as the ``Warning, Alert, and Response 
Network Act''.
    SEC. 602. FEDERAL COMMUNICATIONS COMMISSION DUTIES.
    (a) Commercial Mobile Service Alert Regulations.--Within 180 days 
after the date on which the Commercial Mobile Service Alert Advisory 
Committee, established pursuant to section 603(a), transmits 
recommendations to the Federal Communications Commission, the 
Commission shall complete a proceeding to adopt relevant technical 
standards, protocols, procedures, and other technical requirements 
based on the recommendations of such Advisory Committee necessary to 
enable commercial mobile service alerting capability for commercial 
mobile service providers that voluntarily elect to transmit emergency 
alerts. The Commission shall consult with the National Institute of 
Standards and Technology regarding the adoption of technical standards 
under this subsection.
    (b) Commercial Mobile Service Election.--
        (1) Amendment of commercial mobile service license.--Within 120 
    days after the date on which the Federal Communications Commission 
    adopts relevant technical standards and other technical 
    requirements pursuant to subsection (a), the Commission shall 
    complete a proceeding--
            (A) to allow any licensee providing commercial mobile 
        service (as defined in section 332(d)(1) of the Communications 
        Act of 1934 (47 U.S.C. 332(d)(1))) to transmit emergency alerts 
        to subscribers to, or users of, the commercial mobile service 
        provided by such licensee;
            (B) to require any licensee providing commercial mobile 
        service that elects, in whole or in part, under paragraph (2) 
        not to transmit emergency alerts to provide clear and 
        conspicuous notice at the point of sale of any devices with 
        which its commercial mobile service is included, that it will 
        not transmit such alerts via the service it provides for the 
        device; and
            (C) to require any licensee providing commercial mobile 
        service that elects under paragraph (2) not to transmit 
        emergency alerts to notify its existing subscribers of its 
        election.
        (2) Election.--
            (A) In general.--Within 30 days after the Commission issues 
        its order under paragraph (1), each licensee providing 
        commercial mobile service shall file an election with the 
        Commission with respect to whether or not it intends to 
        transmit emergency alerts.
            (B) Transmission standards; notification.--If a licensee 
        providing commercial mobile service elects to transmit 
        emergency alerts via its commercial mobile service, the 
        licensee shall--
                (i) notify the Commission of its election; and
                (ii) agree to transmit such alerts in a manner 
            consistent with the technical standards, protocols, 
            procedures, and other technical requirements implemented by 
            the Commission.
            (C) No fee for service.--A commercial mobile service 
        licensee that elects to transmit emergency alerts may not 
        impose a separate or additional charge for such transmission or 
        capability.
            (D) Withdrawal; late election.--The Commission shall 
        establish a procedure--
                (i) for a commercial mobile service licensee that has 
            elected to transmit emergency alerts to withdraw its 
            election without regulatory penalty or forfeiture upon 
            advance written notification of the withdrawal to its 
            affected subscribers;
                (ii) for a commercial mobile service licensee to elect 
            to transmit emergency alerts at a date later than provided 
            in subparagraph (A); and
                (iii) under which a subscriber may terminate a 
            subscription to service provided by a commercial mobile 
            service licensee that withdraws its election without 
            penalty or early termination fee.
            (E) Consumer choice technology.--Any commercial mobile 
        service licensee electing to transmit emergency alerts may 
        offer subscribers the capability of preventing the subscriber's 
        device from receiving such alerts, or classes of such alerts, 
        other than an alert issued by the President. Within 2 years 
        after the Commission completes the proceeding under paragraph 
        (1), the Commission shall examine the issue of whether a 
        commercial mobile service provider should continue to be 
        permitted to offer its subscribers such capability. The 
        Commission shall submit a report with its recommendations to 
        the Committee on Commerce, Science, and Transportation of the 
        Senate and the Committee on Energy and Commerce of the House of 
        Representatives.
    (c) Digital Television Transmission Towers Retransmission 
Capability.--Within 90 days after the date on which the Commission 
adopts relevant technical standards based on recommendations of the 
Commercial Mobile Service Alert Advisory Committee, established 
pursuant to section 603(a), the Commission shall complete a proceeding 
to require licensees and permittees of noncommercial educational 
broadcast stations or public broadcast stations (as those terms are 
defined in section 397(6) of the Communications Act of 1934 (47 U.S.C. 
397(6))) to install necessary equipment and technologies on, or as part 
of, any broadcast television digital signal transmitter to enable the 
distribution of geographically targeted alerts by commercial mobile 
service providers that have elected to transmit emergency alerts under 
this section.
    (d) FCC Regulation of Compliance.--The Federal Communications 
Commission may enforce compliance with this title but shall have no 
rulemaking authority under this title, except as provided in 
subsections (a), (b), (c), and (f).
    (e) Limitation of Liability.--
        (1) In general.--Any commercial mobile service provider 
    (including its officers, directors, employees, vendors, and agents) 
    that transmits emergency alerts and meets its obligations under 
    this title shall not be liable to any subscriber to, or user of, 
    such person's service or equipment for--
            (A) any act or omission related to or any harm resulting 
        from the transmission of, or failure to transmit, an emergency 
        alert; or
            (B) the release to a government agency or entity, public 
        safety, fire service, law enforcement official, emergency 
        medical service, or emergency facility of subscriber 
        information used in connection with delivering such an alert.
        (2) Election not to transmit alerts.--The election by a 
    commercial mobile service provider under subsection (b)(2)(A) not 
    to transmit emergency alerts, or to withdraw its election to 
    transmit such alerts under subsection (b)(2)(D) shall not, by 
    itself, provide a basis for liability against the provider 
    (including its officers, directors, employees, vendors, and 
    agents).
    (f) Testing.--The Commission shall require by regulation technical 
testing for commercial mobile service providers that elect to transmit 
emergency alerts and for the devices and equipment used by such 
providers for transmitting such alerts.
    SEC. 603. COMMERCIAL MOBILE SERVICE ALERT ADVISORY COMMITTEE.
    (a) Establishment.--Not later than 60 days after the date of 
enactment of this Act, the chairman of the Federal Communications 
Commission shall establish an advisory committee, to be known as the 
Commercial Mobile Service Alert Advisory Committee (referred to in this 
section as the ``Advisory Committee'').
    (b) Membership.--The chairman of the Federal Communications 
Commission shall appoint the members of the Advisory Committee, as soon 
as practicable after the date of enactment of this Act, from the 
following groups:
        (1) State and local government representatives.--
    Representatives of State and local governments and representatives 
    of emergency response providers, selected from among individuals 
    nominated by national organizations representing such governments 
    and personnel.
        (2) Tribal governments.--Representatives from Federally 
    recognized Indian tribes and National Indian organizations.
        (3) Subject matter experts.--Individuals who have the requisite 
    technical knowledge and expertise to serve on the Advisory 
    Committee in the fulfillment of its duties, including 
    representatives of--
            (A) communications service providers;
            (B) vendors, developers, and manufacturers of systems, 
        facilities, equipment, and capabilities for the provision of 
        communications services;
            (C) third-party service bureaus;
            (D) technical experts from the broadcasting industry;
            (E) the national organization representing the licensees 
        and permittees of noncommercial broadcast television stations;
            (F) national organizations representing individuals with 
        special needs, including individuals with disabilities and the 
        elderly; and
            (G) other individuals with relevant technical expertise.
        (4) Qualified representatives of other stakeholders and 
    interested parties.--Qualified representatives of such other 
    stakeholders and interested and affected parties as the chairman 
    deems appropriate.
    (c) Development of System-Critical Recommendations.--Within 1 year 
after the date of enactment of this Act, the Advisory Committee shall 
develop and submit to the Federal Communications Commission 
recommendations--
        (1) for protocols, technical capabilities, and technical 
    procedures through which electing commercial mobile service 
    providers receive, verify, and transmit alerts to subscribers;
        (2) for the establishment of technical standards for priority 
    transmission of alerts by electing commercial mobile service 
    providers to subscribers;
        (3) for relevant technical standards for devices and equipment 
    and technologies used by electing commercial mobile service 
    providers to transmit emergency alerts to subscribers;
        (4) for the technical capability to transmit emergency alerts 
    by electing commercial mobile providers to subscribers in languages 
    in addition to English, to the extent practicable and feasible;
        (5) under which electing commercial mobile service providers 
    may offer subscribers the capability of preventing the subscriber's 
    device from receiving emergency alerts, or classes of such alerts, 
    (other than an alert issued by the President), consistent with 
    section 602(b)(2)(E);
        (6) for a process under which commercial mobile service 
    providers can elect to transmit emergency alerts if--
            (A) not all of the devices or equipment used by such 
        provider are capable of receiving such alerts; or
            (B) the provider cannot offer such alerts throughout the 
        entirety of its service area; and
        (7) as otherwise necessary to enable electing commercial mobile 
    service providers to transmit emergency alerts to subscribers.
    (d) Meetings.--
        (1) Initial meeting.--The initial meeting of the Advisory 
    Committee shall take place not later than 60 days after the date of 
    the enactment of this Act.
        (2) Other meetings.--After the initial meeting, the Advisory 
    Committee shall meet at the call of the chair.
        (3) Notice; open meetings.--Any meetings held by the Advisory 
    Committee shall be duly noticed at least 14 days in advance and 
    shall be open to the public.
    (e) Rules.--
        (1) Quorum.--One-third of the members of the Advisory Committee 
    shall constitute a quorum for conducting business of the Advisory 
    Committee.
        (2) Subcommittees.--To assist the Advisory Committee in 
    carrying out its functions, the chair may establish appropriate 
    subcommittees composed of members of the Advisory Committee and 
    other subject matter experts as deemed necessary.
        (3) Additional rules.--The Advisory Committee may adopt other 
    rules as needed.
    (f) Federal Advisory Committee Act.--Neither the Federal Advisory 
Committee Act (5 U.S.C. App.) nor any rule, order, or regulation 
promulgated under that Act shall apply to the Advisory Committee.
    (g) Consultation With NIST.--The Advisory Committee shall consult 
with the National Institute of Standards and Technology in its work on 
developing recommendations under paragraphs (2) and (3) of subsection 
(c).
    SEC. 604. RESEARCH AND DEVELOPMENT.
    (a) In General.--The Under Secretary of Homeland Security for 
Science and Technology, in consultation with the director of the 
National Institute of Standards and Technology and the chairman of the 
Federal Communications Commission, shall establish a research, 
development, testing, and evaluation program based on the 
recommendations of the Commercial Mobile Service Alert Advisory 
Committee, established pursuant to section 603(a), to support the 
development of technologies to increase the number of commercial mobile 
service devices that can receive emergency alerts.
    (b) Functions.--The program established under subsection (a) 
shall--
        (1) fund research, development, testing, and evaluation at 
    academic institutions, private sector entities, government 
    laboratories, and other appropriate entities; and
        (2) ensure that the program addresses, at a minimum--
            (A) developing innovative technologies that will transmit 
        geographically targeted emergency alerts to the public; and
            (B) research on understanding and improving public response 
        to warnings.
    SEC. 605. GRANT PROGRAM FOR REMOTE COMMUNITY ALERT SYSTEMS.
    (a) Grant Program.--The Under Secretary of Commerce for Oceans and 
Atmosphere, in consultation with the Secretary of Homeland Security, 
shall establish a program under which grants may be made to provide for 
outdoor alerting technologies in remote communities effectively 
unserved by commercial mobile service (as determined by the Federal 
Communications Commission within 180 days after the date of enactment 
of this Act) for the purpose of enabling residents of those communities 
to receive emergency alerts.
    (b) Applications and Conditions.--In conducting the program, the 
Under Secretary--
        (1) shall establish a notification and application procedure; 
    and
        (2) may establish such conditions, and require such assurances, 
    as may be appropriate to ensure the efficiency and integrity of the 
    grant program.
    (c) Sunset.--The Under Secretary may not make grants under 
subsection (a) more than 5 years after the date of enactment of this 
Act.
    (d) Limitation.--The sum of the amounts awarded for all fiscal 
years as grants under this section may not exceed $10,000,000.
    SEC. 606. FUNDING.
    (a) In General.--In addition to any amounts provided by 
appropriation Acts, funding for this title shall be provided from the 
Digital Transition and Public Safety Fund in accordance with section 
3010 of the Digital Television Transition and Public Safety Act of 2005 
(47 U.S.C. 309 note).
    (b) Compensation.--The Assistant Secretary of Commerce for 
Communications and Information shall compensate any such broadcast 
station licensee or permittee for reasonable costs incurred in 
complying with the requirements imposed pursuant to section 602(c) from 
funds made available under this section. The Assistant Secretary shall 
ensure that sufficient funds are made available to effectuate 
geographically targeted alerts.
    (c) Credit.--The Assistant Secretary of Commerce for Communications 
and Information, in consultation with the Under Secretary of Homeland 
Security for Science and Technology and the Under Secretary of Commerce 
for Oceans and Atmosphere, may borrow from the Treasury beginning on 
October 1, 2006, such sums as may be necessary, but not to exceed 
$106,000,000, to implement this title. The Assistant Secretary of 
Commerce for Communications and Information shall ensure that the Under 
Secretary of Homeland Security for Science and Technology and the Under 
Secretary of Commerce for Oceans and Atmosphere are provided adequate 
funds to carry out their responsibilities under sections 604 and 605 of 
this title. The Treasury shall be reimbursed, without interest, from 
amounts in the Digital Television Transition and Public Safety Fund as 
funds are deposited into the Fund.
    SEC. 607. ESSENTIAL SERVICES DISASTER ASSISTANCE.
    Title IV of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170 et seq.) is amended by adding at the end 
the following:
    ``SEC. 425. ESSENTIAL SERVICE PROVIDERS.
    ``(a) Definition.--In this section, the term `essential service 
provider' means an entity that--
        ``(1) provides--
            ``(A) telecommunications service;
            ``(B) electrical power;
            ``(C) natural gas;
            ``(D) water and sewer services; or
            ``(E) any other essential service, as determined by the 
        President;
        ``(2) is--
            ``(A) a municipal entity;
            ``(B) a nonprofit entity; or
            ``(C) a private, for profit entity; and
        ``(3) is contributing to efforts to respond to an emergency or 
    major disaster.
    ``(b) Authorization for Accessibility.--Unless exceptional 
circumstances apply, in an emergency or major disaster, the head of a 
Federal agency, to the greatest extent practicable, shall not--
        ``(1) deny or impede access to the disaster site to an 
    essential service provider whose access is necessary to restore and 
    repair an essential service; or
        ``(2) impede the restoration or repair of the services 
    described in subsection (a)(1).
    ``(c) Implementation.--In implementing this section, the head of a 
Federal agency shall follow all applicable Federal laws, regulations, 
and policies.''.
    SEC. 608. COMMUNITY DISASTER LOANS.
    Section 417(b) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5184(b)) is amended--
        (1) by striking ``exceed 25 per centum'' and inserting the 
    following: ``exceed--
        ``(1) 25 percent''; and
        (2) by striking the period at the end and inserting the 
    following: ``; or
        ``(2) if the loss of tax and other revenues of the local 
    government as a result of the major disaster is at least 75 percent 
    of the annual operating budget of that local government for the 
    fiscal year in which the major disaster occurs, 50 percent of the 
    annual operating budget of that local government for the fiscal 
    year in which the major disaster occurs, and shall not exceed 
    $5,000,000.''.
    SEC. 609. PUBLIC FACILITIES.
    Section 406(c)(1) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5172(c)(1)) is amended--
        (1) in subparagraph (A), by striking ``75'' and inserting 
    ``90'';
        (2) by striking subparagraph (B); and
        (3) by redesignating subparagraphs (C) and (D) as subparagraphs 
    (B) and (C), respectively.
    SEC. 610. EXPEDITED PAYMENTS.
    Section 407 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5173) is amended by adding at the end the 
following:
    ``(e) Expedited Payments.--
        ``(1) Grant assistance.--In making a grant under subsection 
    (a)(2), the President shall provide not less than 50 percent of the 
    President's initial estimate of the Federal share of assistance as 
    an initial payment in accordance with paragraph (2).
        ``(2) Date of payment.--Not later than 60 days after the date 
    of the estimate described in paragraph (1) and not later than 90 
    days after the date on which the State or local government or owner 
    or operator of a private nonprofit facility applies for assistance 
    under this section, an initial payment described in paragraph (1) 
    shall be paid.''.
    SEC. 611. USE OF LOCAL CONTRACTING.
    Section 307(b) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5150), as amended by the Post-
Katrina Emergency Management Reform Act of 2006, is amended by adding 
at the end the following:
        ``(3) Formulation of requirements.--The head of a Federal 
    agency, as feasible and practicable, shall formulate appropriate 
    requirements to facilitate compliance with this section.''.
    SEC. 612. FEMA PROGRAMS.
    Notwithstanding any other provision of Federal law, as of April 1, 
2007, the Director of the Federal Emergency Management Agency shall be 
responsible for the radiological emergency preparedness program and the 
chemical stockpile emergency preparedness program.
    SEC. 613. HOMELAND SECURITY DEFINITION.
    Section 2(6) of the Homeland Security Act of 2002 (6 U.S.C. 101(6)) 
is amended by inserting ``governmental and nongovernmental'' after 
``local''.

                        TITLE VII--OTHER MATTERS

    SEC. 701. SECURITY PLAN FOR ESSENTIAL AIR SERVICE AND SMALL 
      COMMUNITY AIRPORTS.
    (a) In General.--Not later than 60 days after the date of the 
enactment of this Act, the Assistant Secretary for the Transportation 
Security Administration shall submit to Congress a security plan for--
        (1) Essential Air Service airports in the United States; and
        (2) airports whose community or consortia of communities 
    receive assistance under the Small Community Air Service 
    Development Program authorized under section 41743 of title 49, 
    United States Code, and maintain, resume, or obtain scheduled 
    passenger air carrier service with assistance from that program in 
    the United States.
    (b) Elements of Plan.--The security plans required under subsection 
(a) shall include the following:
        (1) Recommendations for improved security measures at such 
    airports.
        (2) Recommendations for proper passenger and cargo security 
    screening procedures at such airports.
        (3) A timeline for implementation of recommended security 
    measures or procedures at such airports.
        (4) Cost analysis for implementation of recommended security 
    measures or procedures at such airports.
    SEC. 702. DISCLOSURES REGARDING HOMELAND SECURITY GRANTS.
    (a) Definitions.--In this section:
        (1) Homeland security grant.--The term ``homeland security 
    grant'' means any grant made or administered by the Department, 
    including--
            (A) the State Homeland Security Grant Program;
            (B) the Urban Area Security Initiative Grant Program;
            (C) the Law Enforcement Terrorism Prevention Program;
            (D) the Citizen Corps; and
            (E) the Metropolitan Medical Response System.
        (2) Local government.--The term ``local government'' has the 
    meaning given the term in section 2 of the Homeland Security Act of 
    2002 (6 U.S.C. 101).
    (b) Required Disclosures.--Each State or local government that 
receives a homeland security grant shall, not later than 12 months 
after the later of the date of the enactment of this Act and the date 
of receipt of such grant, and every 12 months thereafter until all 
funds provided under such grant are expended, submit a report to the 
Secretary that contains a list of all expenditures made by such State 
or local government using funds from such grant.
    SEC. 703. TRUCKING SECURITY.
    (a) Legal Status Verification for Licensed United States Commercial 
Drivers.--Not later than 18 months after the date of the enactment of 
this Act, the Secretary of Transportation, in cooperation with the 
Secretary, shall issue regulations to implement the recommendations 
contained in the memorandum of the Inspector General of the Department 
of Transportation issued on June 4, 2004 (Control No. 2004-054).
    (b) Commercial Driver's License Antifraud Programs.--Not later than 
18 months after the date of the enactment of this Act, the Secretary of 
Transportation, in cooperation with the Secretary, shall issue a 
regulation to implement the recommendations contained in the Report on 
Federal Motor Carrier Safety Administration Oversight of the Commercial 
Driver's License Program (MH-2006-037).
    (c) Verification of Commercial Motor Vehicle Traffic.--
        (1) Guidelines.--Not later than 18 months after the date of the 
    enactment of this Act, the Secretary, in consultation with the 
    Secretary of Transportation, shall draft guidelines for Federal, 
    State, and local law enforcement officials, including motor carrier 
    safety enforcement personnel, on how to identify noncompliance with 
    Federal laws uniquely applicable to commercial motor vehicles and 
    commercial motor vehicle operators engaged in cross-border traffic 
    and communicate such noncompliance to the appropriate Federal 
    authorities. Such guidelines shall be coordinated with the training 
    and outreach activities of the Federal Motor Carrier Safety 
    Administration under section 4139 of SAFETEA-LU (Public Law 109-
    59).
        (2) Verification.--Not later than 18 months after the date of 
    the enactment of this Act, the Administrator of the Federal Motor 
    Carrier Safety Administration shall modify the final rule regarding 
    the enforcement of operating authority (Docket No. FMCSA-2002-
    13015) to establish a system or process by which a carrier's 
    operating authority can be verified during a roadside inspection.
    SEC. 704. AIR AND MARINE OPERATIONS OF THE NORTHERN BORDER AIR 
      WING.
    In addition to any other amounts authorized to be appropriated for 
Air and Marine Operations of United States Customs and Border 
Protection for fiscal year 2008, there are authorized to be 
appropriated such sums as may be necessary for operation expenses and 
aviation assets, for primary and secondary sites, of the Northern 
Border Air Wing Branch in Great Falls, Montana.
    SEC. 705. PHASEOUT OF VESSELS SUPPORTING OIL AND GAS DEVELOPMENT.
    (a) In General.--Notwithstanding section 12105(c) of title 46, 
United States Code, a foreign-flag vessel may be chartered by, or on 
behalf of, a lessee to be employed for the setting, relocation, or 
recovery of anchors or other mooring equipment of a mobile offshore 
drilling unit that is located over the Outer Continental Shelf (as 
defined in section 2(a) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1331(a)) for operations in support of exploration, or flow-
testing and stimulation of wells, for offshore mineral or energy 
resources in the Beaufort Sea or the Chukchi Sea adjacent to Alaska--
        (1) until December 31, 2009, if the Secretary of Transportation 
    determines after publishing notice in the Federal Register, that 
    insufficient vessels documented under section 12105(c) of title 46, 
    United States Code, are reasonably available and suitable for these 
    support operations and all such reasonably available and suitable 
    vessels are employed in support of such operations; and
        (2) for an additional 2-year period beginning January 1, 2010, 
    if the Secretary of Transportation determines --
            (A) as of December 31, 2009, the lessee has entered into a 
        binding agreement to employ an eligible vessel or vessels to be 
        documented under section 12105(c) of title 46, United States 
        Code, in sufficient numbers and with sufficient suitability to 
        replace any vessel or vessels operating under this section; and
            (B) after publishing notice in the Federal Register, that 
        insufficient vessels documented under section 12105(c) of title 
        46, United States Code, are reasonably available and suitable 
        for these support operations and all such reasonably available 
        and suitable vessels are employed in support of such 
        operations.
    (b) Lessee Defined.--In this section, the term ``lessee'' means the 
holder of a lease (as defined in section 1331(c) of title 43, United 
States Code).
    (c) Savings Provision.--Nothing in subsection (a) may be construed 
to authorize the employment in the coastwise trade of a vessel that 
does not meet the requirements of section 12106 of title 46, United 
States Code.
    SEC. 706. COAST GUARD PROPERTY IN PORTLAND, MAINE.
    Section 347(c) of the Maritime Transportation Security Act of 2002 
(Public Law 107-295; 116 Stat. 2109) is amended by striking ``within 30 
months from the date of conveyance'' and inserting ``by December 31, 
2009''.
    SEC. 707. METHAMPHETAMINE AND METHAMPHETAMINE PRECURSOR CHEMICALS.
    (a) Compliance With Performance Plan Requirements.--As part of the 
annual performance plan required in the budget submission of the United 
States Customs and Border Protection under section 1115 of title 31, 
United States Code, the Commissioner shall establish performance 
indicators relating to the seizure of methamphetamine and 
methamphetamine precursor chemicals in order to evaluate the 
performance goals of the United States Customs and Border Protection 
with respect to the interdiction of illegal drugs entering the United 
States.
    (b) Study and Report Relating to Methamphetamine and 
Methamphetamine Precursor Chemicals.--
        (1) Analysis.--The Commissioner shall, on an ongoing basis, 
    analyze the movement of methamphetamine and methamphetamine 
    precursor chemicals into the United States. In conducting the 
    analysis, the Commissioner shall--
            (A) consider the entry of methamphetamine and 
        methamphetamine precursor chemicals through ports of entry, 
        between ports of entry, through international mails, and 
        through international courier services;
            (B) examine the export procedures of each foreign country 
        where the shipments of methamphetamine and methamphetamine 
        precursor chemicals originate and determine if changes in the 
        country's customs over time provisions would alleviate the 
        export of methamphetamine and methamphetamine precursor 
        chemicals; and
            (C) identify emerging trends in smuggling techniques and 
        strategies.
        (2) Report.--Not later than September 30, 2007, and each 2-year 
    period thereafter, the Commissioner, in the consultation with the 
    Attorney General, United States Immigration and Customs 
    Enforcement, the United States Drug Enforcement Administration, and 
    the United States Department of State, shall submit a report to the 
    Committee on Finance of the Senate, the Committee on Foreign 
    Relations of the Senate, the Committee on the Judiciary of the 
    Senate, the Committee on Ways and Means of the House of 
    Representatives, the Committee on International Relations of the 
    House of Representatives, and the Committee on the Judiciary of the 
    House of Representatives, that includes--
            (A) a comprehensive summary of the analysis described in 
        paragraph (1); and
            (B) a description of how the Untied States Customs and 
        Border Protection utilized the analysis described in paragraph 
        (1) to target shipments presenting a high risk for smuggling or 
        circumvention of the Combat Methamphetamine Epidemic Act of 
        2005 (Public Law 109-177).
        (3) Availability of analysis.--The Commissioner shall ensure 
    that the analysis described in paragraph (1) is made available in a 
    timely manner to the Secretary of State to facilitate the Secretary 
    in fulfilling the Secretary's reporting requirements in section 722 
    of the Combat Methamphetamine Epidemic Act of 2005.
    (c) Definition.--In this section, the term ``methamphetamine 
precursor chemicals'' means the chemicals ephedrine, pseudoephedrine, 
or phenylpropanolamine, including each of the salts, optical isomers, 
and salts of optical isomers of such chemicals.
    SEC. 708. AIRCRAFT CHARTER CUSTOMER AND LESSEE PRESCREENING 
      PROGRAM.
    (a) Implementation Status.--Not later than 270 days after the 
implementation of the Department's aircraft charter customer and lessee 
prescreening process required under section 44903(j)(2) of title 49, 
United States Code, the Comptroller General of the United States 
shall--
        (1) assess the status and implementation of the program and the 
    use of the program by the general aviation charter and rental 
    community; and
        (2) submit a report containing the findings, conclusions, and 
    recommendations, if any, of such assessment to--
            (A) the Committee on Commerce, Science, and Transportation 
        of the Senate;
            (B) the Committee on Homeland Security of the House of 
        Representatives; and
            (C) the Committee on Transportation and Infrastructure of 
        the House of Representatives.
    SEC. 709. PROTECTION OF HEALTH AND SAFETY DURING DISASTERS.
    (a) Definitions.--In this section:
        (1) Certified monitoring program.--The term ``certified 
    monitoring program'' means a medical monitoring program--
            (A) in which a participating responder is a participant as 
        a condition of the employment of such participating responder; 
        and
            (B) that the Secretary of Health and Human Services 
        certifies includes an adequate baseline medical screening.
        (2) Disaster area.--The term ``disaster area'' means an area in 
    which the President has declared a major disaster (as that term is 
    defined in section 102 of the Robert T. Stafford Disaster Relief 
    and Emergency Assistance Act (42 U.S.C. 5122)), during the period 
    of such declaration.
        (3) High exposure level.--The term ``high exposure level'' 
    means a level of exposure to a substance of concern that is for 
    such a duration, or of such a magnitude, that adverse effects on 
    human health can be reasonably expected to occur, as determined by 
    the President, acting through the Secretary of Health and Human 
    Services, in accordance with human monitoring or environmental or 
    other appropriate indicators.
        (4) Individual.--The term ``individual'' includes--
            (A) a worker or volunteer who responds to a disaster, 
        either natural or manmade, involving any mode of transportation 
        in the United States or disrupting the transportation system of 
        the United States, including--
                (i) a police officer;
                (ii) a firefighter;
                (iii) an emergency medical technician;
                (iv) any participating member of an urban search and 
            rescue team; and
                (v) any other relief or rescue worker or volunteer that 
            the President, acting through the Secretary of Health and 
            Human Services, determines to be appropriate;
            (B) a worker who responds to a disaster, either natural or 
        manmade, involving any mode of transportation in the United 
        States or disrupting the transportation system of the United 
        States, by assisting in the cleanup or restoration of critical 
        infrastructure in and around a disaster area;
            (C) a person whose place of residence is in a disaster 
        area, caused by either a natural or manmade disaster involving 
        any mode of transportation in the United States or disrupting 
        the transportation system of the United States;
            (D) a person who is employed in or attends school, child 
        care, or adult day care in a building located in a disaster 
        area, caused by either a natural or manmade disaster involving 
        any mode of transportation in the United States or disrupting 
        the transportation system of the United States, of the United 
        States; and
            (E) any other person that the President, acting through the 
        Secretary of Health and Human Services, determines to be 
        appropriate.
        (5) Participating responder.--The term ``participating 
    responder'' means an individual described in paragraph (4)(A).
        (6) Program.--The term ``program'' means a program described in 
    subsection (b) that is carried out for a disaster area.
        (7) Substance of concern.--The term ``substance of concern'' 
    means a chemical or other substance that is associated with 
    potential acute or chronic human health effects, the risk of 
    exposure to which could potentially be increased as the result of a 
    disaster, as determined by the President, acting through the 
    Secretary of Health and Human Services, and in coordination with 
    the Agency for Toxic Substances and Disease Registry, the 
    Environmental Protection Agency, the Centers for Disease Control 
    and Prevention, the National Institutes of Health, the Federal 
    Emergency Management Agency, the Occupational Health and Safety 
    Administration, and other agencies.
    (b) Program.--
        (1) In general.--If the President, acting through the Secretary 
    of Health and Human Services, determines that 1 or more substances 
    of concern are being, or have been, released in an area declared to 
    be a disaster area and disrupts the transportation system of the 
    United States, the President, acting through the Secretary of 
    Health and Human Services, may carry out a program for the 
    coordination, protection, assessment, monitoring, and study of the 
    health and safety of individuals with high exposure levels to 
    ensure that--
            (A) the individuals are adequately informed about and 
        protected against potential health impacts of any substance of 
        concern in a timely manner;
            (B) the individuals are monitored and studied over time, 
        including through baseline and followup clinical health 
        examinations, for--
                (i) any short- and long-term health impacts of any 
            substance of concern; and
                (ii) any mental health impacts;
            (C) the individuals receive health care referrals as needed 
        and appropriate; and
            (D) information from any such monitoring and studies is 
        used to prevent or protect against similar health impacts from 
        future disasters.
        (2) Activities.--A program under paragraph (1) may include such 
    activities as--
            (A) collecting and analyzing environmental exposure data;
            (B) developing and disseminating information and 
        educational materials;
            (C) performing baseline and followup clinical health and 
        mental health examinations and taking biological samples;
            (D) establishing and maintaining an exposure registry;
            (E) studying the short- and long-term human health impacts 
        of any exposures through epidemiological and other health 
        studies; and
            (F) providing assistance to individuals in determining 
        eligibility for health coverage and identifying appropriate 
        health services.
        (3) Timing.--To the maximum extent practicable, activities 
    under any program carried out under paragraph (1) (including 
    baseline health examinations) shall be commenced in a timely manner 
    that will ensure the highest level of public health protection and 
    effective monitoring.
        (4) Participation in registries and studies.--
            (A) In general.--Participation in any registry or study 
        that is part of a program carried out under paragraph (1) shall 
        be voluntary.
            (B) Protection of privacy.--The President, acting through 
        the Secretary of Health and Human Services, shall take 
        appropriate measures to protect the privacy of any participant 
        in a registry or study described in subparagraph (A).
            (C) Priority.--
                (i) In general.--Except as provided in clause (ii), the 
            President, acting through the Secretary of Health and Human 
            Services, shall give priority in any registry or study 
            described in subparagraph (A) to the protection, monitoring 
            and study of the health and safety of individuals with the 
            highest level of exposure to a substance of concern.
                (ii) Modifications.--Notwithstanding clause (i), the 
            President, acting through the Secretary of Health and Human 
            Services, may modify the priority of a registry or study 
            described in subparagraph (A), if the President, acting 
            through the Secretary of Health and Human Services, 
            determines such modification to be appropriate.
        (5) Cooperative agreements.--
            (A) In general.--The President, acting through the 
        Secretary of Health and Human Services, may carry out a program 
        under paragraph (1) through a cooperative agreement with a 
        medical institution, including a local health department, or a 
        consortium of medical institutions.
            (B) Selection criteria.--To the maximum extent practicable, 
        the President, acting through the Secretary of Health and Human 
        Services, shall select, to carry out a program under paragraph 
        (1), a medical institution or a consortium of medical 
        institutions that--
                (i) is located near--

                    (I) the disaster area with respect to which the 
                program is carried out; and
                    (II) any other area in which there reside groups of 
                individuals that worked or volunteered in response to 
                the disaster; and

                (ii) has appropriate experience in the areas of 
            environmental or occupational health, toxicology, and 
            safety, including experience in--

                    (I) developing clinical protocols and conducting 
                clinical health examinations, including mental health 
                assessments;
                    (II) conducting long-term health monitoring and 
                epidemiological studies;
                    (III) conducting long-term mental health studies; 
                and
                    (IV) establishing and maintaining medical 
                surveillance programs and environmental exposure or 
                disease registries.

        (6) Involvement.--
            (A) In general.--In carrying out a program under paragraph 
        (1), the President, acting through the Secretary of Health and 
        Human Services, shall involve interested and affected parties, 
        as appropriate, including representatives of--
                (i) Federal, State, and local government agencies;
                (ii) groups of individuals that worked or volunteered 
            in response to the disaster in the disaster area;
                (iii) local residents, businesses, and schools 
            (including parents and teachers);
                (iv) health care providers;
                (v) faith based organizations; and
                (vi) other organizations and persons.
            (B) Committees.--Involvement under subparagraph (A) may be 
        provided through the establishment of an advisory or oversight 
        committee or board.
        (7) Privacy.--The President, acting through the Secretary of 
    Health and Human Services, shall carry out each program under 
    paragraph (1) in accordance with regulations relating to privacy 
    promulgated under section 264(c) of the Health Insurance 
    Portability and Accountability Act of 1996 (42 U.S.C. 1320d-2 note; 
    Public Law 104-191).
        (8) Existing programs.--In carrying out a program under 
    paragraph (1), the President, acting through the Secretary of 
    Health and Human Services, may--
            (A) include the baseline clinical health examination of a 
        participating responder under a certified monitoring programs; 
        and
            (B) substitute the baseline clinical health examination of 
        a participating responder under a certified monitoring program 
        for a baseline clinical health examination under paragraph (1).
    (c) Reports.--Not later than 1 year after the establishment of a 
program under subsection (b)(1), and every 5 years thereafter, the 
President, acting through the Secretary of Health and Human Services, 
or the medical institution or consortium of such institutions having 
entered into a cooperative agreement under subsection (b)(5), may 
submit a report to the Secretary of Homeland Security, the Secretary of 
Labor, the Administrator of the Environmental Protection Agency, and 
appropriate committees of Congress describing the programs and studies 
carried out under the program.
    (d) National Academy of Sciences Report on Disaster Area Health and 
Environmental Protection and Monitoring.--
        (1) In general.--The Secretary of Health and Human Services, 
    the Secretary of Homeland Security, and the Administrator of the 
    Environmental Protection Agency shall jointly enter into a contract 
    with the National Academy of Sciences to conduct a study and 
    prepare a report on disaster area health and environmental 
    protection and monitoring.
        (2) Participation of experts.--The report under paragraph (1) 
    shall be prepared with the participation of individuals who have 
    expertise in--
            (A) environmental health, safety, and medicine;
            (B) occupational health, safety, and medicine;
            (C) clinical medicine, including pediatrics;
            (D) environmental toxicology;
            (E) epidemiology;
            (F) mental health;
            (G) medical monitoring and surveillance;
            (H) environmental monitoring and surveillance;
            (I) environmental and industrial hygiene;
            (J) emergency planning and preparedness;
            (K) public outreach and education;
            (L) State and local health departments;
            (M) State and local environmental protection departments;
            (N) functions of workers that respond to disasters, 
        including first responders;
            (O) public health; and
            (P) family services, such as counseling and other disaster-
        related services provided to families.
        (3) Contents.--The report under paragraph (1) shall provide 
    advice and recommendations regarding protecting and monitoring the 
    health and safety of individuals potentially exposed to any 
    chemical or other substance associated with potential acute or 
    chronic human health effects as the result of a disaster, including 
    advice and recommendations regarding--
            (A) the establishment of protocols for monitoring and 
        responding to chemical or substance releases in a disaster area 
        to protect public health and safety, including--
                (i) chemicals or other substances for which samples 
            should be collected in the event of a disaster, including a 
            terrorist attack;
                (ii) chemical- or substance-specific methods of sample 
            collection, including sampling methodologies and locations;
                (iii) chemical- or substance-specific methods of sample 
            analysis;
                (iv) health-based threshold levels to be used and 
            response actions to be taken in the event that thresholds 
            are exceeded for individual chemicals or other substances;
                (v) procedures for providing monitoring results to--

                    (I) appropriate Federal, State, and local 
                government agencies;
                    (II) appropriate response personnel; and
                    (III) the public;

                (vi) responsibilities of Federal, State, and local 
            agencies for--

                    (I) collecting and analyzing samples;
                    (II) reporting results; and
                    (III) taking appropriate response actions; and

                (vii) capabilities and capacity within the Federal 
            Government to conduct appropriate environmental monitoring 
            and response in the event of a disaster, including a 
            terrorist attack; and
            (B) other issues specified by the Secretary of Health and 
        Human Services, the Secretary of Homeland Security, and the 
        Administrator of the Environmental Protection Agency.
        (4) Authorization of appropriations.--There are authorized to 
    be appropriated such sums as are necessary to carry out this 
    subsection.

           TITLE VIII--UNLAWFUL INTERNET GAMBLING ENFORCEMENT

    SEC. 801. SHORT TITLE.
    This title may be cited as the ``Unlawful Internet Gambling 
Enforcement Act of 2006''.
    SEC. 802. PROHIBITION ON ACCEPTANCE OF ANY PAYMENT INSTRUMENT FOR 
      UNLAWFUL INTERNET GAMBLING.
    (a) In General.--Chapter 53 of title 31, United States Code, is 
amended by adding at the end the following:

 ``SUBCHAPTER IV--PROHIBITION ON FUNDING OF UNLAWFUL INTERNET GAMBLING

``Sec. 5361. Congressional findings and purpose

    ``(a) Findings.--Congress finds the following:
        ``(1) Internet gambling is primarily funded through personal 
    use of payment system instruments, credit cards, and wire 
    transfers.
        ``(2) The National Gambling Impact Study Commission in 1999 
    recommended the passage of legislation to prohibit wire transfers 
    to Internet gambling sites or the banks which represent such sites.
        ``(3) Internet gambling is a growing cause of debt collection 
    problems for insured depository institutions and the consumer 
    credit industry.
        ``(4) New mechanisms for enforcing gambling laws on the 
    Internet are necessary because traditional law enforcement 
    mechanisms are often inadequate for enforcing gambling prohibitions 
    or regulations on the Internet, especially where such gambling 
    crosses State or national borders.
    ``(b) Rule of Construction.--No provision of this subchapter shall 
be construed as altering, limiting, or extending any Federal or State 
law or Tribal-State compact prohibiting, permitting, or regulating 
gambling within the United States.

``Sec. 5362. Definitions

    ``In this subchapter:
        ``(1) Bet or wager.--The term `bet or wager'--
            ``(A) means the staking or risking by any person of 
        something of value upon the outcome of a contest of others, a 
        sporting event, or a game subject to chance, upon an agreement 
        or understanding that the person or another person will receive 
        something of value in the event of a certain outcome;
            ``(B) includes the purchase of a chance or opportunity to 
        win a lottery or other prize (which opportunity to win is 
        predominantly subject to chance);
            ``(C) includes any scheme of a type described in section 
        3702 of title 28;
            ``(D) includes any instructions or information pertaining 
        to the establishment or movement of funds by the bettor or 
        customer in, to, or from an account with the business of 
        betting or wagering; and
            ``(E) does not include--
                ``(i) any activity governed by the securities laws (as 
            that term is defined in section 3(a)(47) of the Securities 
            Exchange Act of 1934 for the purchase or sale of securities 
            (as that term is defined in section 3(a)(10) of that Act);
                ``(ii) any transaction conducted on or subject to the 
            rules of a registered entity or exempt board of trade under 
            the Commodity Exchange Act;
                ``(iii) any over-the-counter derivative instrument;
                ``(iv) any other transaction that--

                    ``(I) is excluded or exempt from regulation under 
                the Commodity Exchange Act; or
                    ``(II) is exempt from State gaming or bucket shop 
                laws under section 12(e) of the Commodity Exchange Act 
                or section 28(a) of the Securities Exchange Act of 
                1934;

                ``(v) any contract of indemnity or guarantee;
                ``(vi) any contract for insurance;
                ``(vii) any deposit or other transaction with an 
            insured depository institution;
                ``(viii) participation in any game or contest in which 
            participants do not stake or risk anything of value other 
            than--

                    ``(I) personal efforts of the participants in 
                playing the game or contest or obtaining access to the 
                Internet; or
                    ``(II) points or credits that the sponsor of the 
                game or contest provides to participants free of charge 
                and that can be used or redeemed only for participation 
                in games or contests offered by the sponsor; or

                ``(ix) participation in any fantasy or simulation 
            sports game or educational game or contest in which (if the 
            game or contest involves a team or teams) no fantasy or 
            simulation sports team is based on the current membership 
            of an actual team that is a member of an amateur or 
            professional sports organization (as those terms are 
            defined in section 3701 of title 28) and that meets the 
            following conditions:

                    ``(I) All prizes and awards offered to winning 
                participants are established and made known to the 
                participants in advance of the game or contest and 
                their value is not determined by the number of 
                participants or the amount of any fees paid by those 
                participants.
                    ``(II) All winning outcomes reflect the relative 
                knowledge and skill of the participants and are 
                determined predominantly by accumulated statistical 
                results of the performance of individuals (athletes in 
                the case of sports events) in multiple real-world 
                sporting or other events.
                    ``(III) No winning outcome is based--

                        ``(aa) on the score, point-spread, or any 
                    performance or performances of any single real-
                    world team or any combination of such teams; or
                        ``(bb) solely on any single performance of an 
                    individual athlete in any single real-world 
                    sporting or other event.
        ``(2) Business of betting or wagering.--The term `business of 
    betting or wagering' does not include the activities of a financial 
    transaction provider, or any interactive computer service or 
    telecommunications service.
        ``(3) Designated payment system.--The term `designated payment 
    system' means any system utilized by a financial transaction 
    provider that the Secretary and the Board of Governors of the 
    Federal Reserve System, in consultation with the Attorney General, 
    jointly determine, by regulation or order, could be utilized in 
    connection with, or to facilitate, any restricted transaction.
        ``(4) Financial transaction provider.--The term `financial 
    transaction provider' means a creditor, credit card issuer, 
    financial institution, operator of a terminal at which an 
    electronic fund transfer may be initiated, money transmitting 
    business, or international, national, regional, or local payment 
    network utilized to effect a credit transaction, electronic fund 
    transfer, stored value product transaction, or money transmitting 
    service, or a participant in such network, or other participant in 
    a designated payment system.
        ``(5) Internet.--The term `Internet' means the international 
    computer network of interoperable packet switched data networks.
        ``(6) Interactive computer service.--The term `interactive 
    computer service' has the meaning given the term in section 230(f) 
    of the Communications Act of 1934 (47 U.S.C. 230(f)).
        ``(7) Restricted transaction.--The term `restricted 
    transaction' means any transaction or transmittal involving any 
    credit, funds, instrument, or proceeds described in any paragraph 
    of section 5363 which the recipient is prohibited from accepting 
    under section 5363.
        ``(8) Secretary.--The term `Secretary' means the Secretary of 
    the Treasury.
        ``(9) State.--The term `State' means any State of the United 
    States, the District of Columbia, or any commonwealth, territory, 
    or other possession of the United States.
        ``(10) Unlawful internet gambling.--
            ``(A) In general.--The term `unlawful Internet gambling' 
        means to place, receive, or otherwise knowingly transmit a bet 
        or wager by any means which involves the use, at least in part, 
        of the Internet where such bet or wager is unlawful under any 
        applicable Federal or State law in the State or Tribal lands in 
        which the bet or wager is initiated, received, or otherwise 
        made.
            ``(B) Intrastate transactions.--The term `unlawful Internet 
        gambling' does not include placing, receiving, or otherwise 
        transmitting a bet or wager where--
                ``(i) the bet or wager is initiated and received or 
            otherwise made exclusively within a single State;
                ``(ii) the bet or wager and the method by which the bet 
            or wager is initiated and received or otherwise made is 
            expressly authorized by and placed in accordance with the 
            laws of such State, and the State law or regulations 
            include--

                    ``(I) age and location verification requirements 
                reasonably designed to block access to minors and 
                persons located out of such State; and
                    ``(II) appropriate data security standards to 
                prevent unauthorized access by any person whose age and 
                current location has not been verified in accordance 
                with such State's law or regulations; and

                ``(iii) the bet or wager does not violate any provision 
            of--

                    ``(I) the Interstate Horseracing Act of 1978 (15 
                U.S.C. 3001 et seq.);
                    ``(II) chapter 178 of title 28 (commonly known as 
                the `Professional and Amateur Sports Protection Act');
                    ``(III) the Gambling Devices Transportation Act (15 
                U.S.C. 1171 et seq.); or
                    ``(IV) the Indian Gaming Regulatory Act (25 U.S.C. 
                2701 et seq.).

            ``(C) Intratribal transactions.--The term `unlawful 
        Internet gambling' does not include placing, receiving, or 
        otherwise transmitting a bet or wager where--
                ``(i) the bet or wager is initiated and received or 
            otherwise made exclusively--

                    ``(I) within the Indian lands of a single Indian 
                tribe (as such terms are defined under the Indian 
                Gaming Regulatory Act); or
                    ``(II) between the Indian lands of 2 or more Indian 
                tribes to the extent that intertribal gaming is 
                authorized by the Indian Gaming Regulatory Act;

                ``(ii) the bet or wager and the method by which the bet 
            or wager is initiated and received or otherwise made is 
            expressly authorized by and complies with the requirements 
            of--

                    ``(I) the applicable tribal ordinance or resolution 
                approved by the Chairman of the National Indian Gaming 
                Commission; and
                    ``(II) with respect to class III gaming, the 
                applicable Tribal-State Compact;

                ``(iii) the applicable tribal ordinance or resolution 
            or Tribal-State Compact includes--

                    ``(I) age and location verification requirements 
                reasonably designed to block access to minors and 
                persons located out of the applicable Tribal lands; and
                    ``(II) appropriate data security standards to 
                prevent unauthorized access by any person whose age and 
                current location has not been verified in accordance 
                with the applicable tribal ordinance or resolution or 
                Tribal-State Compact; and

                ``(iv) the bet or wager does not violate any provision 
            of--

                    ``(I) the Interstate Horseracing Act of 1978 (15 
                U.S.C. 3001 et seq.);
                    ``(II) chapter 178 of title 28 (commonly known as 
                the `Professional and Amateur Sports Protection Act');
                    ``(III) the Gambling Devices Transportation Act (15 
                U.S.C. 1171 et seq.); or
                    ``(IV) the Indian Gaming Regulatory Act (25 U.S.C. 
                2701 et seq.).

            ``(D) Interstate horseracing.--
                ``(i) In general.--The term `unlawful Internet 
            gambling' shall not include any activity that is allowed 
            under the Interstate Horseracing Act of 1978 (15 U.S.C. 
            3001 et seq.).
                ``(ii) Rule of construction regarding preemption.--
            Nothing in this subchapter may be construed to preempt any 
            State law prohibiting gambling.
                ``(iii) Sense of congress.--It is the sense of Congress 
            that this subchapter shall not change which activities 
            related to horse racing may or may not be allowed under 
            Federal law. This subparagraph is intended to address 
            concerns that this subchapter could have the effect of 
            changing the existing relationship between the Interstate 
            Horseracing Act and other Federal statutes in effect on the 
            date of the enactment of this subchapter. This subchapter 
            is not intended to change that relationship. This 
            subchapter is not intended to resolve any existing 
            disagreements over how to interpret the relationship 
            between the Interstate Horseracing Act and other Federal 
            statutes.
            ``(E) Intermediate routing.--The intermediate routing of 
        electronic data shall not determine the location or locations 
        in which a bet or wager is initiated, received, or otherwise 
        made.
        ``(11) Other terms.--
            ``(A) Credit; creditor; credit card; and card issuer.--The 
        terms `credit', `creditor', `credit card', and `card issuer' 
        have the meanings given the terms in section 103 of the Truth 
        in Lending Act (15 U.S.C. 1602).
            ``(B) Electronic fund transfer.--The term `electronic fund 
        transfer'--
                ``(i) has the meaning given the term in section 903 of 
            the Electronic Fund Transfer Act (15 U.S.C. 1693a), except 
            that the term includes transfers that would otherwise be 
            excluded under section 903(6)(E) of that Act; and
                ``(ii) includes any fund transfer covered by Article 4A 
            of the Uniform Commercial Code, as in effect in any State.
            ``(C) Financial institution.--The term `financial 
        institution' has the meaning given the term in section 903 of 
        the Electronic Fund Transfer Act, except that such term does 
        not include a casino, sports book, or other business at or 
        through which bets or wagers may be placed or received.
            ``(D) Insured depository institution.--The term `insured 
        depository institution'--
                ``(i) has the meaning given the term in section 3(c) of 
            the Federal Deposit Insurance Act (12 U.S.C. 1813(c)); and
                ``(ii) includes an insured credit union (as defined in 
            section 101 of the Federal Credit Union Act).
            ``(E) Money transmitting business and money transmitting 
        service.--The terms `money transmitting business' and `money 
        transmitting service' have the meanings given the terms in 
        section 5330(d) (determined without regard to any regulations 
        prescribed by the Secretary thereunder).

``Sec. 5363. Prohibition on acceptance of any financial instrument for 
            unlawful Internet gambling

    ``No person engaged in the business of betting or wagering may 
knowingly accept, in connection with the participation of another 
person in unlawful Internet gambling--
        ``(1) credit, or the proceeds of credit, extended to or on 
    behalf of such other person (including credit extended through the 
    use of a credit card);
        ``(2) an electronic fund transfer, or funds transmitted by or 
    through a money transmitting business, or the proceeds of an 
    electronic fund transfer or money transmitting service, from or on 
    behalf of such other person;
        ``(3) any check, draft, or similar instrument which is drawn by 
    or on behalf of such other person and is drawn on or payable at or 
    through any financial institution; or
        ``(4) the proceeds of any other form of financial transaction, 
    as the Secretary and the Board of Governors of the Federal Reserve 
    System may jointly prescribe by regulation, which involves a 
    financial institution as a payor or financial intermediary on 
    behalf of or for the benefit of such other person.

``Sec. 5364. Policies and procedures to identify and prevent restricted 
            transactions

    ``(a) Regulations.--Before the end of the 270-day period beginning 
on the date of the enactment of this subchapter, the Secretary and the 
Board of Governors of the Federal Reserve System, in consultation with 
the Attorney General, shall prescribe regulations (which the Secretary 
and the Board jointly determine to be appropriate) requiring each 
designated payment system, and all participants therein, to identify 
and block or otherwise prevent or prohibit restricted transactions 
through the establishment of policies and procedures reasonably 
designed to identify and block or otherwise prevent or prohibit the 
acceptance of restricted transactions in any of the following ways:
        ``(1) The establishment of policies and procedures that--
            ``(A) allow the payment system and any person involved in 
        the payment system to identify restricted transactions by means 
        of codes in authorization messages or by other means; and
            ``(B) block restricted transactions identified as a result 
        of the policies and procedures developed pursuant to 
        subparagraph (A).
        ``(2) The establishment of policies and procedures that prevent 
    or prohibit the acceptance of the products or services of the 
    payment system in connection with a restricted transaction.
    ``(b) Requirements for Policies and Procedures.--In prescribing 
regulations under subsection (a), the Secretary and the Board of 
Governors of the Federal Reserve System shall--
        ``(1) identify types of policies and procedures, including 
    nonexclusive examples, which would be deemed, as applicable, to be 
    reasonably designed to identify and block or otherwise prevent or 
    prohibit the acceptance of the products or services with respect to 
    each type of restricted transaction;
        ``(2) to the extent practical, permit any participant in a 
    payment system to choose among alternative means of identifying and 
    blocking, or otherwise preventing or prohibiting the acceptance of 
    the products or services of the payment system or participant in 
    connection with, restricted transactions;
        ``(3) exempt certain restricted transactions or designated 
    payment systems from any requirement imposed under such 
    regulations, if the Secretary and the Board jointly find that it is 
    not reasonably practical to identify and block, or otherwise 
    prevent or prohibit the acceptance of, such transactions; and
        ``(4) ensure that transactions in connection with any activity 
    excluded from the definition of unlawful internet gambling in 
    subparagraph (B), (C), or (D)(i) of section 5362(10) are not 
    blocked or otherwise prevented or prohibited by the prescribed 
    regulations.
    ``(c) Compliance With Payment System Policies and Procedures.--A 
financial transaction provider shall be considered to be in compliance 
with the regulations prescribed under subsection (a) if--
        ``(1) such person relies on and complies with the policies and 
    procedures of a designated payment system of which it is a member 
    or participant to--
            ``(A) identify and block restricted transactions; or
            ``(B) otherwise prevent or prohibit the acceptance of the 
        products or services of the payment system, member, or 
        participant in connection with restricted transactions; and
        ``(2) such policies and procedures of the designated payment 
    system comply with the requirements of regulations prescribed under 
    subsection (a).
    ``(d) No Liability for Blocking or Refusing To Honor Restricted 
Transactions.--A person that identifies and blocks a transaction, 
prevents or prohibits the acceptance of its products or services in 
connection with a transaction, or otherwise refuses to honor a 
transaction--
        ``(1) that is a restricted transaction;
        ``(2) that such person reasonably believes to be a restricted 
    transaction; or
        ``(3) as a designated payment system or a member of a 
    designated payment system in reliance on the policies and 
    procedures of the payment system, in an effort to comply with 
    regulations prescribed under subsection (a),
shall not be liable to any party for such action.
    ``(e) Regulatory Enforcement.--The requirements under this section 
shall be enforced exclusively by--
        ``(1) the Federal functional regulators, with respect to the 
    designated payment systems and financial transaction providers 
    subject to the respective jurisdiction of such regulators under 
    section 505(a) of the Gramm-Leach-Bliley Act and section 5g of the 
    Commodities Exchange Act; and
        ``(2) the Federal Trade Commission, with respect to designated 
    payment systems and financial transaction providers not otherwise 
    subject to the jurisdiction of any Federal functional regulators 
    (including the Commission) as described in paragraph (1).

``Sec. 5365. Civil remedies

    ``(a) Jurisdiction.--In addition to any other remedy under current 
law, the district courts of the United States shall have original and 
exclusive jurisdiction to prevent and restrain restricted transactions 
by issuing appropriate orders in accordance with this section, 
regardless of whether a prosecution has been initiated under this 
subchapter.
    ``(b) Proceedings.--
        ``(1) Institution by federal government.--
            ``(A) In general.--The United States, acting through the 
        Attorney General, may institute proceedings under this section 
        to prevent or restrain a restricted transaction.
            ``(B) Relief.--Upon application of the United States under 
        this paragraph, the district court may enter a temporary 
        restraining order, a preliminary injunction, or an injunction 
        against any person to prevent or restrain a restricted 
        transaction, in accordance with rule 65 of the Federal Rules of 
        Civil Procedure.
        ``(2) Institution by state attorney general.--
            ``(A) In general.--The attorney general (or other 
        appropriate State official) of a State in which a restricted 
        transaction allegedly has been or will be initiated, received, 
        or otherwise made may institute proceedings under this section 
        to prevent or restrain the violation or threatened violation.
            ``(B) Relief.--Upon application of the attorney general (or 
        other appropriate State official) of an affected State under 
        this paragraph, the district court may enter a temporary 
        restraining order, a preliminary injunction, or an injunction 
        against any person to prevent or restrain a restricted 
        transaction, in accordance with rule 65 of the Federal Rules of 
        Civil Procedure.
        ``(3) Indian lands.--
            ``(A) In general.--Notwithstanding paragraphs (1) and (2), 
        for a restricted transaction that allegedly has been or will be 
        initiated, received, or otherwise made on Indian lands (as that 
        term is defined in section 4 of the Indian Gaming Regulatory 
        Act)--
                ``(i) the United States shall have the enforcement 
            authority provided under paragraph (1); and
                ``(ii) the enforcement authorities specified in an 
            applicable Tribal-State Compact negotiated under section 11 
            of the Indian Gaming Regulatory Act (25 U.S.C. 2710) shall 
            be carried out in accordance with that compact.
            ``(B) Rule of construction.--No provision of this section 
        shall be construed as altering, superseding, or otherwise 
        affecting the application of the Indian Gaming Regulatory Act.
    ``(c) Limitation Relating to Interactive Computer Services.--
        ``(1) In general.--Relief granted under this section against an 
    interactive computer service shall--
            ``(A) be limited to the removal of, or disabling of access 
        to, an online site violating section 5363, or a hypertext link 
        to an online site violating such section, that resides on a 
        computer server that such service controls or operates, except 
        that the limitation in this subparagraph shall not apply if the 
        service is subject to liability under this section under 
        section 5367;
            ``(B) be available only after notice to the interactive 
        computer service and an opportunity for the service to appear 
        are provided;
            ``(C) not impose any obligation on an interactive computer 
        service to monitor its service or to affirmatively seek facts 
        indicating activity violating this subchapter;
            ``(D) specify the interactive computer service to which it 
        applies; and
            ``(E) specifically identify the location of the online site 
        or hypertext link to be removed or access to which is to be 
        disabled.
        ``(2) Coordination with other law.--An interactive computer 
    service that does not violate this subchapter shall not be liable 
    under section 1084(d) of title 18, except that the limitation in 
    this paragraph shall not apply if an interactive computer service 
    has actual knowledge and control of bets and wagers and--
            ``(A) operates, manages, supervises, or directs an Internet 
        website at which unlawful bets or wagers may be placed, 
        received, or otherwise made or at which unlawful bets or wagers 
        are offered to be placed, received, or otherwise made; or
            ``(B) owns or controls, or is owned or controlled by, any 
        person who operates, manages, supervises, or directs an 
        Internet website at which unlawful bets or wagers may be 
        placed, received, or otherwise made, or at which unlawful bets 
        or wagers are offered to be placed, received, or otherwise 
        made.
    ``(d) Limitation on Injunctions Against Regulated Persons.--
Notwithstanding any other provision of this section, and subject to 
section 5367, no provision of this subchapter shall be construed as 
authorizing the Attorney General of the United States, or the attorney 
general (or other appropriate State official) of any State to institute 
proceedings to prevent or restrain a restricted transaction against any 
financial transaction provider, to the extent that the person is acting 
as a financial transaction provider.

``Sec. 5366. Criminal penalties

    ``(a) In General.--Any person who violates section 5363 shall be 
fined under title 18, imprisoned for not more than 5 years, or both.
    ``(b) Permanent Injunction.--Upon conviction of a person under this 
section, the court may enter a permanent injunction enjoining such 
person from placing, receiving, or otherwise making bets or wagers or 
sending, receiving, or inviting information assisting in the placing of 
bets or wagers.

``Sec. 5367. Circumventions prohibited

    ``Notwithstanding section 5362(2), a financial transaction 
provider, or any interactive computer service or telecommunications 
service, may be liable under this subchapter if such person has actual 
knowledge and control of bets and wagers, and--
        ``(1) operates, manages, supervises, or directs an Internet 
    website at which unlawful bets or wagers may be placed, received, 
    or otherwise made, or at which unlawful bets or wagers are offered 
    to be placed, received, or otherwise made; or
        ``(2) owns or controls, or is owned or controlled by, any 
    person who operates, manages, supervises, or directs an Internet 
    website at which unlawful bets or wagers may be placed, received, 
    or otherwise made, or at which unlawful bets or wagers are offered 
    to be placed, received, or otherwise made.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 53 of title 31, United States Code, is amended by adding at the 
end the following:

   ``Subchapter IV--Prohibition on Funding of Unlawful Internet Gambling

``5361. Congressional findings and purpose.
``5362. Definitions.
``5363. Prohibition on acceptance of any financial instrument for 
          unlawful Internet gambling.
``5364. Policies and procedures to identify and prevent restricted 
          transactions.
``5365. Civil remedies.
``5366. Criminal penalties.
``5367. Circumventions prohibited.''.
    SEC. 803. INTERNET GAMBLING IN OR THROUGH FOREIGN JURISDICTIONS.
    (a) In General.--In deliberations between the United States 
Government and any foreign country on money laundering, corruption, and 
crime issues, the United States Government should--
        (1) encourage cooperation by foreign governments and relevant 
    international fora in identifying whether Internet gambling 
    operations are being used for money laundering, corruption, or 
    other crimes;
        (2) advance policies that promote the cooperation of foreign 
    governments, through information sharing or other measures, in the 
    enforcement of this Act; and
        (3) encourage the Financial Action Task Force on Money 
    Laundering, in its annual report on money laundering typologies, to 
    study the extent to which Internet gambling operations are being 
    used for money laundering purposes.
    (b) Report Required.--The Secretary of the Treasury shall submit an 
annual report to the Congress on any deliberations between the United 
States and other countries on issues relating to Internet gambling.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
```