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. 
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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. 
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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 cargorelated 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. 
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(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—
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(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, 
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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.—
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‘‘(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: 
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‘‘(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. 
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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: 

‘‘§ 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. 
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‘‘(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’’. 
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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. 
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‘‘(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; 
H. R. 4954—13

(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 
H. R. 4954—14

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. 
H. R. 4954—15

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 
H. R. 4954—16

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 
H. R. 4954—17

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. 
H. R. 4954—18

(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; 
H. R. 4954—19

(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. 
H. R. 4954—20

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 
H. R. 4954—21

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 
H. R. 4954—22

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 
H. R. 4954—23

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—
H. R. 4954—24

(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 
H. R. 4954—25

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. 
H. R. 4954—26

(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 governmentprivate 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; 
H. R. 4954—27

(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 
H. R. 4954—28

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.—
H. R. 4954—29

(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—
H. R. 4954—30

(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 
H. R. 4954—31

(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 outcomebased 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. 
H. R. 4954—32

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 
H. R. 4954—33

(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 
H. R. 4954—34

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: 

‘‘§ 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 TERRI- TORIES.—

‘‘(1) IN GENERAL.—The Secretary, in consultation with the 

Secretary of Transportation, the Secretary of State, and the 
H. R. 4954—35

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 
H. R. 4954—36

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. 
H. R. 4954—37

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’’. 
H. R. 4954—38

(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’’), 
H. R. 4954—39

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 
H. R. 4954—40

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 
H. R. 4954—41

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, 
H. R. 4954—42

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 
H. R. 4954—43

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 
H. R. 4954—44

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 
H. R. 4954—45

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; 
H. R. 4954—46

‘‘(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 
H. R. 4954—47

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—
H. R. 4954—48

‘‘(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 inbond cargo; 
H. R. 4954—49

‘‘(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; 
H. R. 4954—50

‘‘(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 
H. R. 4954—51

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. 
H. R. 4954—52

‘‘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. 
H. R. 4954—53

(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 
H. R. 4954—54

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. 
H. R. 4954—55

(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 
H. R. 4954—56

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.—
H. R. 4954—57

(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 
H. R. 4954—58

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 
H. R. 4954—59

‘‘(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 
H. R. 4954—60

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: 
H. R. 4954—61

(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. 
H. R. 4954—62

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’’. 
H. R. 4954—63

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, 
H. R. 4954—64

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; 
H. R. 4954—65

(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 
H. R. 4954—66

(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 
H. R. 4954—67

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 
H. R. 4954—68

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; 
H. R. 4954—69

(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 

‘‘§ 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 
H. R. 4954—70

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. 

‘‘§ 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 
H. R. 4954—71

‘‘(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 realworld 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 
H. R. 4954—72

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; 
H. R. 4954—73

‘‘(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 PREEMP- TION.—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.—
H. R. 4954—74

‘‘(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). 

‘‘§ 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. 
H. R. 4954—75

‘‘§ 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 
H. R. 4954—76

‘‘(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). 

‘‘§ 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 
H. R. 4954—77

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 
H. R. 4954—78

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. 

‘‘§ 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. 

‘‘§ 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.’’.
H. R. 4954—79

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.