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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2279 Introduced in Senate (IS)]

108th CONGRESS
  2d Session
                                S. 2279

    To amend title 46, United States Code, with respect to maritime 
            transportation security, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 1, 2004

 Mr. Hollings (for himself, Mr. McCain, and Mr. Breaux) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL

 
    To amend title 46, United States Code, with respect to maritime 
            transportation security, 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 ``Maritime 
Transportation Security Act of 2004''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents
Sec. 2. In rem liability; enforcement; pier and wharf security costs.
Sec. 3. Maritime information.
Sec. 4. Intermodal cargo security plan.
Sec. 5. Joint operations center for port security.
Sec. 6. Maritime transportation security plan grants.
Sec. 7. Assistance for foreign ports.
Sec. 8. Federal and State commercial maritime transportation training.
Sec. 9. Port security research and development.
Sec. 10. Nuclear facilities in maritime areas.
Sec. 11. Transportation worker background investigation programs.
Sec. 12. Security service fee.
Sec. 13. Port security capital fund.

SEC. 2. IN REM LIABILITY; ENFORCEMENT; PIER AND WHARF SECURITY COSTS.

    (a) In General.--Chapter 701 of title 46, United States Code, is 
amended--
            (1) by redesignating section 70117 as 70120; and
            (2) by inserting after section 70116 the following:
``Sec.  70117. In rem liability for civil penalties and certain costs
    ``(a) In General.--Any vessel subject to the provisions of this 
chapter, which is used in violation of this chapter or any regulations 
issued hereunder shall be liable in rem for any civil penalty assessed 
pursuant to section 70120 and may be proceeded against in the United 
States district court for any district in which such vessel may be 
found.
    ``(b) Reimbursable Costs.--
            ``(1) In general.--Any vessel subject to the provisions of 
        this chapter shall be liable in rem for the reimbursable costs 
        incurred by any valid claimant related to implementation and 
        enforcement of this chapter with respect to the vessel, 
        including port authorities, facility or terminal operators, 
        shipping agents, Federal, State, or local government agencies, 
        and other persons to whom the management of the vessel at the 
        port of supply is entrusted, and any fine or penalty relating 
        to reporting requirements of the vessel or its cargo, crew, or 
        passengers, and may be proceeded against in the United States 
        district court for any district in which such vessel may be 
        found.
            ``(2) Reimbursable costs defined.--In this subsection the 
        term `reimbursable costs' means costs incurred by any service 
        provider, including port authorities, facility or terminal 
        operators, shipping agents, Federal, State, or local government 
        agencies, or other person to whom the management of the vessel 
        at the port of supply is entrusted, for--
                    ``(A) vessel crew on board, or in transit to or 
                from, the vessel under lawful order, including 
                accommodation, detention, transportation, and medical 
                expenses; and
                    ``(B) required handling under lawful order of cargo 
                or other items on board the vessel.
``Sec. 70118. Enforcement by injunction or withholding of clearance
    ``(a) Injunction.--The United States district courts shall have 
jurisdiction to restrain violations of this chapter or of regulations 
issued hereunder, for cause shown.
    ``(b) Withholding of Clearance.--
            ``(1) If any owner, agent, master, officer, or person in 
        charge of a vessel is liable for a penalty or fine under 
        section 70120, or if reasonable cause exists to believe that 
        the owner, agent, master, officer, or person in charge may be 
        subject to a penalty under section 70120, the Secretary may, 
        with respect to such vessel, refuse or revoke any clearance 
        required by section 4197 of the Revised Statutes of the United 
        States (46 U.S.C. App. 91).
            ``(2) Clearance refused or revoked under this subsection 
        may be granted upon filing of a bond or other surety 
        satisfactory to the Secretary.
``Sec. 70119. Security of piers and wharfs
    ``(a) In General.--Notwithstanding any provision of law, the 
Secretary shall require any uncleared, imported merchandise remaining 
on the wharf or pier onto which it was unladen for more than 5 calendar 
days to be removed from the wharf or pier and deposited in the public 
stores or a general order warehouse, where it shall be inspected for 
determination of contents, and thereafter a permit for its delivery may 
be granted.
    ``(b) Penalty.--The Secretary may impose an administrative penalty 
of $5,000 for each bill of lading for general order merchandise 
remaining on a wharf or pier in violation of subsection (a).''.
    (b) Conforming Amendment for In Rem Liability Provision in Chapter 
701.--Section 2 of the Act of June 15, 1917 (50 U.S.C. 192) is 
amended--
            (1) by striking ``Act,'' each place it appears and 
        inserting ``title,''; and
            (2) by adding at the end the following:
    ``(d) In Rem Liability.--Any vessel subject to the provisions of 
this title, which is used in violation of this title, or any 
regulations issued hereunder, shall be liable in rem for any civil 
penalty assessed pursuant to subsection (c) and may be proceeded 
against in the United States district court for any district in which 
such vessel may be found.
    ``(e) Injunction.--The United States district courts shall have 
jurisdiction to restrain violations of this title or of regulations 
issued hereunder, for cause shown.
    ``(f) Withholding of Clearance.--
            ``(1) If any owner, agent, master, officer, or person in 
        charge of a vessel is liable for a penalty or fine under 
        subsection (c), or if reasonable cause exists to believe that 
        the owner, agent, master, officer, or person in charge may be 
        subject to a penalty or fine under subsection (c), the 
        Secretary may, with respect to such vessel, refuse or revoke 
        any clearance required by section 4197 of the Revised Statutes 
        of the United States (46 U.S.C. App. 91).
            ``(2) Clearance refused or revoked under this subsection 
        may be granted upon filing of a bond or other surety 
        satisfactory to the Secretary of the Department in which the 
        Coast Guard is operating.''.
    (c) Empty Containers.--Within 90 days after the date of enactment 
of this Act, the Secretary of Homeland Security shall review United 
States ports and transmit to the Senate Committee on Commerce, Science, 
and Transportation and the House of Representatives Committee on 
Transportation and Infrastructure a report on the practices and 
policies in place to secure shipment of empty containers. The Secretary 
shall include in the report recommendations with respect to whether 
additional regulations or legislation is necessary to ensure the safe 
and secure delivery of cargo and to prevent potential acts of terrorism 
involving such containers.
    (d) Clerical Amendment.--The chapter analysis for chapter 701 of 
title 46, United States Code, is amended by striking the last item and 
inserting the following:

``70117. In rem liability for civil penalties and certain costs
``70118. Enforcement by injunction or withholding of clearance
``70119. Security of piers and wharfs
``70120. Civil penalty''.

SEC. 3. MARITIME INFORMATION.

    Within 90 days after the date of enactment of this Act, the 
Secretary of Homeland Security shall submit a report to the Senate 
Committee on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure that 
provides a preliminary plan for the implementation of section 70113 of 
title 46, United States Code. The plan shall--
            (1) provide the identification of Federal agencies with 
        maritime information relating to vessels, crew, passengers, 
        cargo, and cargo shippers;
            (2) establish a timeline for coordinating the efforts of 
        those Federal agencies in the collection of maritime 
        information;
            (3) establish a timeline for the incorporation of 
        information on vessel movements derived through the 
        implementation of sections 70114 and 70115 of title 46, United 
        States Code;
            (4) include recommendations on co-locating agency personnel 
        in order to maximize expertise, minimize cost, and avoid 
        redundancy;
            (5) include recommendations on how to leverage information 
        on commercial maritime information collected by the Department 
        of the Navy, and identify any legal impediments that would 
        prevent or reduce the utilization of such information outside 
        the Department of the Navy;
            (6) include recommendations on educating Federal officials 
        on commercial maritime operations in order to facilitate the 
        identification of security risks posed through commercial 
        maritime transportation operations;
            (7) include recommendations on how private sector resources 
        could be utilized to collect or analyze information, along with 
        a preliminary assessment of the availability and expertise of 
        private sector resources;
            (8) include recommendations on how to disseminate 
        information collected and analyzed through Federal maritime 
        security coordinator while considering the need for 
        nondisclosure of sensitive security information and the 
        maximizing of security through the utilization of State, local, 
        and private security personnel; and
            (9) include recommendations on how the Department could 
        help support a maritime information sharing and analysis center 
        for the purpose of collecting information from public and 
        private entities, along with recommendations on the appropriate 
        levels of funding to help disseminate maritime security 
        information to the private sector.

SEC. 4. INTERMODAL CARGO SECURITY PLAN.

    (a) In General.--In addition to the plan submitted under section 3, 
within 180 days after the date of enactment of this Act, the Secretary 
of Homeland Security shall submit a report to the Senate Committee on 
Commerce, Science, and Transportation and the House of Representatives 
Committee on Transportation and Infrastructure containing the 
following:
            (1) Secure systems of transportation (46 u.s.c. 70116).--A 
        plan, along with timelines, for the implementation of section 
        70116 of title 46, United States Code. The plan shall--
                    (A) provide an update on current efforts by the 
                Department of Homeland Security could be incorporated 
                into the certification process outlined in section 
                70116 to ensure the physical screening or inspection of 
                imported cargo;
                    (B) provide a preliminary assessment of resources 
                necessary to evaluate and certify ``Secure Systems of 
                Transportation'', and the resources necessary to 
                validate that ``Secure Systems of Transportation'' are 
                operating in compliance with the certification 
                requirements; and
                    (C) contain an analysis of the feasibility of 
                establishing a user fee in order to be able to 
                evaluate, certify, and validate ``Secure Systems of 
                Transportation''.
            (2) Radiation detectors.--A report on progress in the 
        installation of a system of radiation detection at all major 
        United States seaports, along with a timeline and expected 
        completion date for the system. In the report, the Secretary 
        shall include a preliminary analysis of any issues related to 
        the installation of the radiation detection equipment, as well 
        as a cost estimate for completing installation of the system.
            (3) Non-intrusive inspection at foreign ports.--A report--
                    (A) on whether and to what extent foreign seaports 
                have been willing to utilize screening equipment at 
their ports to screen cargo, including the number of cargo containers 
that have been screened at foreign seaports, and the ports where they 
were screened;
                    (B) indicating which foreign ports may be willing 
                to utilize their screening equipment for cargo exported 
                for import into the United States, and a recommendation 
                as to whether, and to what extent, United States cargo 
                screening equipment will be required to be purchased 
                and stationed at foreign seaports for inspection; and
                    (C) indicating to what extent additional resources 
                and program changes will be necessary to maximize 
                scrutiny of cargo in foreign seaports.
            (4) Compliance with security standard programs.--A plan to 
        establish, validate, and ensure compliance with security 
        standards that would require ports, terminals, vessel 
        operators, and shippers to adhere to security standards 
        established by or consistent with the National Transportation 
        System Security Plan. The plan shall indicate what resources 
        will be utilized, and how they would be utilized, to ensure 
        that companies operate in compliance with security standards.
    (b) Evaluation of Cargo Inspection Targeting System for 
International Intermodal Cargo Containers.--
            (1) In general.--Within 6 months after the date of 
        enactment of this Act, and annually thereafter, the Inspector 
        General of the Department of Homeland Security shall evaluate 
        the system used by the Department to target international 
        intermodal containers for inspection and report the results of 
        the evaluation to the Senate Committee on Commerce, Science, 
        and Transportation and the House of Representatives Committee 
        on Transportation and Infrastructure. In conducting the 
        evaluation, the Inspector General shall assess--
                    (A) the effectiveness of the current tracking 
                system to determine whether it is adequate to prevent 
                international intermodal containers from being used for 
                purposes of terrorism;
                    (B) the sources of information used by the system 
                to determine whether targeting information is collected 
                from the best and most credible sources and evaluate 
                data sources to determine information gaps and 
                weaknesses;
                    (C) the targeting system for reporting and 
                analyzing inspection statistics, as well as testing 
                effectiveness;
                    (D) the competence and training of employees 
                operating the system to determine whether they are 
                sufficiently capable to detect potential terrorist 
                threats; and
                    (E) whether the system is an effective system to 
                detect potential acts of terrorism and whether 
                additional steps need to be taken in order to remedy 
                deficiencies in targeting international intermodal 
                containers for inspection.
            (2) Increase in inspections.--If the Inspector General 
        determines in any of the reports required by paragraph (1) that 
        the targeting system is insufficiently effective as a means of 
        detecting potential acts of terrorism utilizing international 
        intermodal containers, then within 12 months after that report, 
        the Secretary of Homeland Security shall double the number of 
        containers subjected to intrusive or non-intrusive inspection 
        at United States ports or to be shipped to the United States at 
        foreign seaports.
    (c) Report and Plan Formats.--The Secretary and the Inspector 
General may submit any plan or report required by this section in both 
classified and redacted formats if the Secretary determines that it is 
appropriate or necessary.

SEC. 5. JOINT OPERATIONS CENTER FOR PORT SECURITY.

    The Commandant of the United States Coast Guard shall report to 
Congress, within 180 days after the date of enactment of this Act, on 
the potential benefits of establishing joint operational centers for 
port security at certain United States seaports. The report shall 
consider the 3 Joint Operational Centers that have been established at 
Norfolk, Charleston, San Diego, and elsewhere and compare and contrast 
their composition and operational characteristics. The report shall 
consider--
            (1) whether it would be beneficial to establish linkages to 
        Federal maritime information systems established pursuant to 
        section 70113 of title 46, United States Code;
            (2) whether the operational centers could be beneficially 
        utilized to track vessel movements under sections 70114 and 
        70115 of title 46, United States Code;
            (3) whether the operational centers could be beneficial in 
        the facilitation of intermodal cargo security programs such as 
        the ``Secure Systems of Transportation Program'';
            (4) the extent to which such operational centers could be 
        beneficial in the operation of maritime area security plans and 
        maritime area contingency response plans and in coordinating 
        the port security activities of Federal, State, and local 
        officials; and
            (5) include recommendations for the number of centers and 
        their possible location, as well as preliminary cost estimates 
        for the operation of the centers.

SEC. 6. MARITIME TRANSPORTATION SECURITY PLAN GRANTS.

    Section 70107(a) of title 46, United States Code, is amended to 
read as follows:
    ``(a) In General.--The Under Secretary of Homeland Security for 
Border and Transportation Security shall establish a grant program for 
making a fair and equitable allocation of funds to implement Area 
Maritime Transportation Security Plans and to help fund compliance with 
Federal security plans among port authorities, facility operators, and 
State and local agencies required to provide security services. Grants 
shall be made on the basis of the need to address vulnerabilities in 
security subject to review and comment by the appropriate Federal 
Maritime Security Coordinators and the Maritime Administration. The 
grant program shall take into account national economic and strategic 
defense concerns and shall be coordinated with the Director of the 
Office of Domestic Preparedness to ensure that the grant process is 
consistent with other Department of Homeland Security grant 
programs.''.

SEC. 7. ASSISTANCE FOR FOREIGN PORTS.

    Section 70109 of title 46, United States Code, is amended--
            (1) by striking ``The Secretary'' in subsection (b) and 
        inserting ``The Administrator of the Maritime Administration''; 
        and
            (2) by adding at the end the following:
    ``(c) Foreign Assistance Programs.--The Administrator of the 
Maritime Administration, in coordination with the Secretary of State, 
shall identify foreign assistance programs that could facilitate 
implementation of port security antiterrorism measures in foreign 
countries. The Administrator and the Secretary shall establish a 
program to utilize those programs that are capable of implementing port 
security antiterrorism measures at ports in foreign countries that the 
Secretary finds, under section 70108, to lack effective antiterrorism 
measures.''.

SEC. 8. FEDERAL AND STATE COMMERCIAL MARITIME TRANSPORTATION TRAINING.

    Section 109 of the Maritime Transportation Security Act of 2002 (46 
U.S.C. 70101 note) is amended--
            (1) by redesignating subsections (c) through (f) as 
        subsections (d) through (g), respectively; and
            (2) by inserting after subsection (b) the following:
    ``(c) Federal and State Commercial Maritime Transportation 
Training.--The Secretary of Transportation shall establish a 
curriculum, to be incorporated into the curriculum developed under 
subsection (a)(1), to educate and instruct Federal and State officials 
on commercial maritime and intermodal transportation. The curriculum 
shall be designed to familiarize those officials with commercial 
maritime transportation in order to facilitate performance of their 
commercial maritime and intermodal transportation security 
responsibilities. In developing the standards for the curriculum, the 
Secretary shall consult with each agency in the Department of Homeland 
Security with maritime security responsibilities to determine areas of 
educational need. The Secretary shall also coordinate with the Federal 
Law Enforcement Training Center in the development of the curriculum 
and the provision of training opportunities for Federal and State law 
enforcement officials at appropriate law enforcement training 
facilities.

SEC. 9. RESEARCH AND DEVELOPMENT.

    (a) In General.--Section 70107 of title 46, United States Code, is 
amended by striking subsection (i) and inserting the following:
    ``(i) Research and Development.--
            ``(1) In general.--As part of the research and development 
        program within the Science and Technology directorate, the 
        Secretary of Homeland Security shall conduct investigations, 
        fund pilot programs, award grants, and otherwise conduct 
        research and development across the various portfolios focused 
        on making United States ports safer and more secure. Research 
        conducted under this subsection may include--
                    ``(A) methods or programs to increase the ability 
                to target for inspection vessels, cargo, crewmembers, 
                or passengers that will arrive or have arrived at any 
                port or place in the United States;
                    ``(B) equipment to detect accurately explosives, 
                chemical, or biological agents that could be used to 
                commit terrorist acts against the United States;
                    ``(C) equipment to detect accurately nuclear or 
                radiological materials, including scintillation-based 
                detection equipment capable of signalling the presence 
                of nuclear or radiological materials;
                    ``(D) improved tags and seal designed for use on 
                shipping containers to track the transportation of the 
                merchandise in such containers, including `smart 
                sensors' that are able to track a container throughout 
                its entire supply chain, detect hazardous and 
                radioactive materials within that container, and 
                transmit that information to the appropriate law 
                enforcement authorities;
                    ``(E) tools, including the use of satellite 
                tracking systems, to increase the awareness of maritime 
                areas and to identify potential terrorist threats that 
                could have an impact on facilities, vessels, and 
                infrastructure on or adjacent to navigable waterways, 
                including underwater access;
                    ``(F) tools to mitigate the consequences of a 
                terrorist act on, adjacent to, or under navigable 
                waters of the United States, including sensor 
                equipment, and other tools to help coordinate effective 
                response to a terrorist action; and
                    ``(G) applications to apply existing technologies 
                from other areas or industries to increase overall port 
                security.
            ``(2) Implementation of technology.--
                    ``(A) In general.--In conjunction with ongoing 
                efforts to improve security at United States ports, the 
                Director of the Science and Technology Directorate, in 
                consultation with other Department of Homeland Security 
                agencies with responsibility for port security, may 
                conduct pilot projects at United States ports to test 
                the effectiveness and applicability of new port 
                security projects, including--
                            ``(i) testing of new detection and 
                        screening technologies;
                            ``(ii) projects to protect United States 
                        ports and infrastructure on or adjacent to the 
                        navigable waters of the United States, 
                        including underwater access; and
                            ``(iii) tools for responding to a terrorist 
                        threat or incident at United States ports and 
                        infrastructure on or adjacent to the navigable 
                        waters of the United States, including 
                        underwater access.
                    ``(B) Authorization of appropriations.--There are 
                authorized to be appropriated to the Secretary of 
                Homeland Security $35,000,000 for each of fiscal years 
                2005 through 2009 to carry out pilot projects under 
                subparagraph (A).
            ``(3) Administrative provisions.--
                    ``(A) No duplication of effort.--Before making any 
                grant, the Secretary of Homeland Security shall 
                coordinate with other Federal agencies to ensure the 
                grant will not be used for research and development 
                that is already being conducted with Federal funding.
                    ``(B) Accounting.--The Secretary of Homeland 
                Security shall by regulation establish accounting, 
                reporting, and review procedures to ensure that funds 
                made available under paragraph (1) are used for the 
                purpose for which they were made available, that all 
                expenditures are properly accounted for, and that 
                amounts not used for such purposes and amounts not 
                expended are recovered.
                    ``(C) Recordkeeping.--Recipients of grants shall 
                keep all records related to expenditures and 
                obligations of funds provided under paragraph (1) and 
                make them available upon request to the Inspector 
                General of the Department of Homeland Security and the 
                Secretary of Homeland Security for audit and 
                examination.''.
    (b) Annual Report.--Within 30 days after the beginning of each 
fiscal year from fiscal year 2005 through fiscal year 2009, the 
Director of the Science and Technology Directorate shall submit a 
report describing its research that can be applied to port security to 
the Senate Committee on Commerce, Science, and Transportation, the 
House of Representatives Committee on Science, and the House of 
Representatives Select Committee on Homeland Security. The report 
shall--
            (1) describe any port security-related research, including 
        grants and pilot projects, that were conducted in the preceding 
        fiscal year;
            (2) describe the amount of Department of Homeland Security 
        resources dedicated to research that can be applied to port 
        security;
            (3) describe the steps taken to coordinate with other 
        agencies within the Department to ensure that research efforts 
        are coordinated with port security efforts;
            (4) describe how the results of the Department's research, 
        as well as port security related research of the Department of 
        Defense, will be implemented in the field, including predicted 
        timetables;
            (5) lay out the plans for research in the current fiscal 
        year; and
            (6) include a description of the funding levels for the 
        research in the preceding, current, and next fiscal years.

SEC. 10. NUCLEAR FACILITIES IN MARITIME AREAS.

    (a) Waterways.--Section 70103(b) is amended by adding at the end 
thereof the following:
    ``(5) Waterways located near nuclear facilities.--
            ``(A) Identification and security evaluation.--The 
        Secretary shall--
                    ``(i) identify all nuclear facilities on, adjacent 
                to, or in close proximity to navigable waterways that 
                might be damaged by a transportation security incident;
                    ``(ii) in coordination with the Secretary of 
                Energy, evaluate the security plans of each such 
                nuclear facility for its adequacy to protect the 
                facility from damage or disruption from a 
                transportation security incident originating in the 
                navigable waterway, including threats posed by 
                navigation, underwater access, and the introduction of 
                harmful substances into water coolant systems.
            ``(B) Rectification of deficiencies.--The Secretary, in 
        coordination with the Secretary of Energy, shall take such 
        steps as may be necessary or appropriate to correct any 
        deficiencies in security identified in the evaluations 
        conducted under subparagraph (A).
            ``(C) Report.--As soon as practicable after completion of 
        the evaluation under subparagraph (A), the Secretary shall 
        transmit a report, in both classified and redacted format, to 
        the Senate Committee on Commerce, Science, and Transportation, 
        the House of Representatives Committee on Transportation and 
        Infrastructure, and the House of Representatives Select 
        Committee on Homeland Security--
                    ``(i) describing the results of the identification 
                and evaluation required by subparagraph (A);
                    ``(ii) describing the actions taken under 
                subparagraph (B); and
                    ``(iii) evaluating the technology utilized in the 
                protection of nuclear facilities (including any such 
                technology under development).''.
    (b) Vessels.--Section 70103(c)(3) of title 46, United States Code, 
is amended--
            (1) by striking ``and'' after the semicolon in subparagraph 
        (F);
            (2) by striking ``facility.'' in subparagraph (G) and 
        inserting ``facility; and''; and
            (3) by adding at the end the following:
            ``(H) establish a requirement, coordinated with the 
        Department of Energy, for criminal background checks of all 
        United States and foreign seamen employed on vessels 
        transporting nuclear materials in the navigable waters of the 
        United States.''.

SEC. 11. TRANSPORTATION WORKER BACKGROUND INVESTIGATION PROGRAMS.

    Within 120 days after the date of enactment of this Act, the 
Secretary of Homeland Security, after consultation with the Secretary 
of Transportation, shall transmit a report to the Senate Committee on 
Commerce, Science, and Transportation and the House of Representatives 
Committee on Transportation and Infrastructure--
            (1) making recommendations (including legislative 
        recommendations, if appropriate or necessary) for harmonizing, 
        combining, or coordinating requirements, procedures, and 
        programs for conducting background checks under section 70105 
        of title 46, United States Code, section 5103a(c) of title 49, 
        United States Code, section 44936 of title 49, United States 
        Code, and other provisions of Federal law or regulations 
        requiring background checks for individuals engaged in 
        transportation or transportation-related activities; and
            (2) setting forth a detailed timeline for implementation of 
        such harmonization, combination, or coordination.

SEC. 12. SECURITY SERVICE FEE.

    (a) In General.--Chapter 701 of title 46, United States Code, as 
amended by section 2, is further amended by adding at the end the 
following:
``Sec. 70121. Security service fee
    ``(a) In General.--
            ``(1) Security fee.--Within 90 days after the date of 
        enactment of the Maritime Transportation Security Act of 2004, 
        the Secretary of Homeland Security shall assess and collect an 
        international port security service fee on commercial maritime 
        transportation entities that benefit from a secure system of 
        international maritime transportation to pay for the costs of 
        providing port security services. The amount of the fees 
        assessed and collected under this paragraph and paragraph (2) 
        shall, in the aggregate, be sufficient to provide the services 
        and levels of funding described in section 70122(c).
            ``(2) International transshipment security fee.--The 
        Secretary shall also assess and collect an international 
        maritime transshipment security user fee for providing security 
        services for shipments of cargo and transportation of 
        passengers entering the United States as part of an 
        international transportation movement by water through Canadian 
        or Mexican ports at the same rates as the fee imposed under 
        paragraph (1). The fee authorized by this paragraph shall not 
        be assessed or collected on transshipments from--
                    (A) Canada after the date on which the Secretary 
                determines that an agreement between the United States 
                and Canada, or
                    (B) Mexico after the date on which the Secretary 
                determines that an agreement between the United States 
                and Mexico,
        has entered into force that will provide equivalent security 
        regimes and international maritime security user fees of the 
        United States and that country for transshipments between the 
        countries.
    ``(b) Schedule of Fees.--In imposing fees under subsection (a), the 
Secretary shall ensure that the fees are reasonably related to the 
costs of providing services rendered and the value of the benefit 
derived from the continuation of secure international maritime 
transportation.
    ``(c) Imposition of Fee.--
            ``(1) In general.--Notwithstanding section 9701 of title 31 
        and the procedural requirements of section 553 of title 5, the 
        Secretary shall impose the fees under subsection (a) through 
        the publication of notice in the Federal Register and begin 
        collection of the fee within 60 days of the date of enactment 
        of the Maritime Transportation Security Act of 2004, or as soon 
        as possible thereafter. No fee shall be assessed more than 
        once, and no fee shall be assessed for international ferry 
        voyages.
            ``(2) Means of collection.--The Secretary shall prescribe 
        procedures to collect fees under this section. The Secretary 
        may use a department, agency, or instrumentality of the United 
        States Government or of a State or local government to collect 
        the fee and may reimburse the department, agency, or 
        instrumentality a reasonable amount for its services.
            ``(3) Subsequent modification of fee.--After imposing a fee 
        under subsection (a), the Secretary may modify, from time to 
        time through publication of notice in the Federal Register, the 
        imposition or collection of such fee, or both. The Secretary 
        shall evaluate the fee annually to determine whether it is 
        necessary and appropriate to pay the cost of activities and 
        services, and shall adjust the amount of the fee accordingly.
            ``(4) Limitation on collection.--No fee may be collected 
        under this section except to the extent that the expenditure of 
        the fee to pay the costs of activities and services for which 
        the fee is imposed is provided for in advance in an 
        appropriations Act.
    ``(d) Administration of Fees.--
            ``(1) Fees payable to secretary.--All fees imposed and 
        amounts collected under this section are payable to the 
        Secretary.
            ``(2) Information.--The Secretary may require the provision 
        of such information as the Secretary decides is necessary to 
        verify that fees have been collected and remitted at the proper 
        times and in the proper amounts.
    ``(e) Receipts Credited as Offsetting Collections.--Notwithstanding 
section 3302 of title 31, any fee collected under this section--
            ``(1) shall be credited as offsetting collections to the 
        account that finances the activities and services for which the 
        fee is imposed;
            ``(2) shall be available for expenditure only to pay the 
        costs of activities and services for which the fee is imposed; 
        and
            ``(3) shall remain available until expended.
    ``(f) Refunds.--The Secretary may refund any fee paid by mistake or 
any amount paid in excess of that required.
    ``(g) Sunset.--The fees authorized by subsection (a) may not be 
assessed after September 31, 2009.''.
    (b) Conforming Amendment.--The chapter analysis for chapter 701 of 
title 46, United States Code, as amended by section 2, is amended by 
adding at the end the following:

``70121. Security service fee.''.

SEC. 13. PORT SECURITY CAPITAL FUND.

    (a) In General.--Chapter 701 of title 46, United States Code, as 
amended by section 11, is further amended by adding at the end the 
following:
``Sec. 70122. Port security capital fund.
    ``(a) In General.--There is established within the Department of 
Homeland Security a fund to be known as the Port Security Capital Fund. 
There are appropriated to the Fund such sums as may be derived from the 
fees authorized by section 70121(a).
    ``(b) Purpose.--Amounts in the Fund shall be available to the 
Secretary of Homeland Security--
            ``(1) to provide financial assistance to port authorities, 
        facility operators, and State and local agencies required to 
        provide security services to defray capital investment in 
        transportation security at port facilities in accordance with 
        the provisions of this chapter;
            ``(2) to provide financial assistance to those entities 
        required to provide security services to help ensure compliance 
        with Federal area maritime security plans; and
            ``(3) to help defray the costs of Federal port security 
        programs.
    ``(c) Allocation of Funds.--
            ``(1) Funds derived from security fees.--From amounts in 
        the Fund attributable to fees collected under section 
        70121(a)(1) and (2)--
                    ``(A) no less than $400,000,000 (or such amount as 
                may be appropriate to reflect any modification of the 
                fees under section 70121(c)(3)) shall be made available 
                each fiscal year for grants under section 70107 to help 
                ensure compliance with facility security plans or to 
                help implement Area Maritime Transportation Security 
                Plans;
                    ``(B) funds shall be made available to the Coast 
                Guard for the costs of implementing sections 70114 and 
                70115 fully by the end of fiscal year 2006;
                    ``(C) funds shall be made available to the Coast 
                Guard for the costs of establishing command and control 
                centers at United States ports to help coordinate port 
                security law enforcement activities and implementing 
                Area Maritime Security Plans, and may be transferred, 
                as appropriate, to port authorities, facility 
                operators, and State and local government agencies to 
                help them defray costs associated with port security 
                services;
                    ``(D) funds shall be made available to the Under 
                Secretary of Homeland Security for Border and 
                Transportation Security for the costs of implementing 
                cargo security programs, including the costs of 
                certifying secure systems of transportation under 
                section 70116;
                    ``(E) funds shall be made available to the Under 
                Secretary of Homeland Security for Border and 
                Transportation Security for the costs of acquiring and 
                operating nonintrusive screening equipment at United 
                States ports; and
                    ``(F) funds shall be made available to the 
                Transportation Security Administration for the costs of 
                implementing of section 70113 and the collection of 
                commercial maritime intelligence (including the 
                collection of commercial maritime transportation 
                information from the private sector), of which a 
                portion shall be made available to the Coast Guard and 
                the Customs Service only for the purpose of 
                coordinating the system of collecting and analyzing 
                information on vessels, crew, passengers, cargo, and 
                intermodal shipments.
            ``(2) Transshipment fees.--Amounts in the Fund attributable 
        to fees collected under section 70121(a)(3), shall be made 
        available to the Secretary to defray the costs of providing 
        international maritime transshipment security at the United 
        States borders with Canada and Mexico.
    ``(d) Utilization Reports.--The Commandant of the Coast Guard and 
the Secretary of Homeland Security shall report annually to the Senate 
Committee on Commerce, Science, and Transportation and the House of 
Representatives Committee on Transportation and Infrastructure on 
utilization of amounts received from the Fund.
    ``(e) Letters of Intent.--The Secretary of Homeland Security, or 
his delegate, may execute letters of intent to commit funding to port 
sponsors from the Fund.''.
    (f) Conforming Amendment.--The chapter analysis for chapter 701 of 
title 46, United States Code, as amended by section 11, is amended by 
adding at the end the following:

``70122. Port security capital fund.''.
                                 <all>
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