II 

Calendar No. 530 

108TH CONGRESS 

2D SESSION S. 2279 

[Report No. 108–274] 

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 

MAY 20, 2004 

Reported by Mr. MCCAIN, with an amendment in the nature of a substitute 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL 

To amend title 46, United States Code, with respect to 

maritime transportation security, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Maritime Transportation Security Act of 2004’’. 
2 

•S 2279 RS 

1 (b) TABLE OF CONTENTS.—The table of contents for 

2 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. 

3 SEC. 2. IN REM LIABILITY; ENFORCEMENT; PIER AND 

4 WHARF SECURITY COSTS. 

5 (a) IN GENERAL.—Chapter 701 of title 46, United 

6 States Code, is amended— 

7 (1) by redesignating section 70117 as 70120; 

8 and 

9 (2) by inserting after section 70116 the fol10 lowing: 

11 ‘‘§ 70117. In rem liability for civil penalties and cer12 tain costs 

13 ‘‘(a) IN GENERAL.—Any vessel subject to the provi14 sions of this chapter, which is used in violation of this 

15 chapter or any regulations issued hereunder shall be liable 

16 in rem for any civil penalty assessed pursuant to section 

17 70120 and may be proceeded against in the United States 

18 district court for any district in which such vessel may 

19 be found. 
3 

•S 2279 RS 

1 ‘‘(b) REIMBURSABLE COSTS.— 

2 ‘‘(1) IN GENERAL.—Any vessel subject to the 

3 provisions of this chapter shall be liable in rem for 

4 the reimbursable costs incurred by any valid claim5 ant related to implementation and enforcement of 

6 this chapter with respect to the vessel, including port 

7 authorities, facility or terminal operators, shipping 

8 agents, Federal, State, or local government agencies, 

9 and other persons to whom the management of the 

10 vessel at the port of supply is entrusted, and any 

11 fine or penalty relating to reporting requirements of 

12 the vessel or its cargo, crew, or passengers, and may 

13 be proceeded against in the United States district 

14 court for any district in which such vessel may be 

15 found. 

16 ‘‘(2) REIMBURSABLE COSTS DEFINED.—In this 

17 subsection the term ‘reimbursable costs’ means costs 

18 incurred by any service provider, including port au19 thorities, facility or terminal operators, shipping 

20 agents, Federal, State, or local government agencies, 

21 or other person to whom the management of the ves22 sel at the port of supply is entrusted, for— 

23 ‘‘(A) vessel crew on board, or in transit to 

24 or from, the vessel under lawful order, including 
4 

•S 2279 RS 

1 accommodation, detention, transportation, and 

2 medical expenses; and 

3 ‘‘(B) required handling under lawful order 

4 of cargo or other items on board the vessel. 

5 ‘‘§ 70118. Enforcement by injunction or withholding 

6 of clearance 

7 ‘‘(a) INJUNCTION.—The United States district courts 

8 shall have jurisdiction to restrain violations of this chapter 

9 or of regulations issued hereunder, for cause shown. 

10 ‘‘(b) WITHHOLDING OF CLEARANCE.— 

11 ‘‘(1) If any owner, agent, master, officer, or 

12 person in charge of a vessel is liable for a penalty 

13 or fine under section 70120, or if reasonable cause 

14 exists to believe that the owner, agent, master, offi15 cer, or person in charge may be subject to a penalty 

16 under section 70120, the Secretary may, with re17 spect to such vessel, refuse or revoke any clearance 

18 required by section 4197 of the Revised Statutes of 

19 the United States (46 U.S.C. App. 91). 

20 ‘‘(2) Clearance refused or revoked under this 

21 subsection may be granted upon filing of a bond or 

22 other surety satisfactory to the Secretary. 

23 ‘‘§ 70119. Security of piers and wharfs 

24 ‘‘(a) IN GENERAL.—Notwithstanding any provision 

25 of law, the Secretary shall require any uncleared, imported 
5 

•S 2279 RS 

1 merchandise remaining on the wharf or pier onto which 

2 it was unladen for more than 5 calendar days to be re3 moved from the wharf or pier and deposited in the public 

4 stores or a general order warehouse, where it shall be in5 spected for determination of contents, and thereafter a 

6 permit for its delivery may be granted. 

7 ‘‘(b) PENALTY.—The Secretary may impose an ad8 ministrative penalty of $5,000 for each bill of lading for 

9 general order merchandise remaining on a wharf or pier 

10 in violation of subsection (a).’’. 

11 (b) CONFORMING AMENDMENT FOR IN REM LIABIL12 ITY PROVISION IN CHAPTER 701.—Section 2 of the Act 

13 of June 15, 1917 (50 U.S.C. 192) is amended— 

14 (1) by striking ‘‘Act,’’ each place it appears and 

15 inserting ‘‘title,’’; and 

16 (2) by adding at the end the following: 

17 ‘‘(d) IN REM LIABILITY.—Any vessel subject to the 

18 provisions of this title, which is used in violation of this 

19 title, or any regulations issued hereunder, shall be liable 

20 in rem for any civil penalty assessed pursuant to sub21 section (c) and may be proceeded against in the United 

22 States district court for any district in which such vessel 

23 may be found. 
6 

•S 2279 RS 

1 ‘‘(e) INJUNCTION.—The United States district courts 

2 shall have jurisdiction to restrain violations of this title 

3 or of regulations issued hereunder, for cause shown. 

4 ‘‘(f) WITHHOLDING OF CLEARANCE.— 

5 ‘‘(1) If any owner, agent, master, officer, or 

6 person in charge of a vessel is liable for a penalty 

7 or fine under subsection (c), or if reasonable cause 

8 exists to believe that the owner, agent, master, offi9 cer, or person in charge may be subject to a penalty 

10 or fine under subsection (c), the Secretary may, with 

11 respect to such vessel, refuse or revoke any clearance 

12 required by section 4197 of the Revised Statutes of 

13 the United States (46 U.S.C. App. 91). 

14 ‘‘(2) Clearance refused or revoked under this 

15 subsection may be granted upon filing of a bond or 

16 other surety satisfactory to the Secretary of the De17 partment in which the Coast Guard is operating.’’. 

18 (c) EMPTY CONTAINERS.—Within 90 days after the 

19 date of enactment of this Act, the Secretary of Homeland 

20 Security shall review United States ports and transmit to 

21 the Senate Committee on Commerce, Science, and Trans22 portation and the House of Representatives Committee on 

23 Transportation and Infrastructure a report on the prac24 tices and policies in place to secure shipment of empty 

25 containers. The Secretary shall include in the report rec-
7 

•S 2279 RS 

1 ommendations with respect to whether additional regula2 tions or legislation is necessary to ensure the safe and se3 cure delivery of cargo and to prevent potential acts of ter4 rorism involving such containers. 

5 (d) CLERICAL AMENDMENT.—The chapter analysis 

6 for chapter 701 of title 46, United States Code, is amend7 ed 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’’. 

8 SEC. 3. MARITIME INFORMATION. 

9 Within 90 days after the date of enactment of this 

10 Act, the Secretary of Homeland Security shall submit a 

11 report to the Senate Committee on Commerce, Science, 

12 and Transportation and the House of Representatives 

13 Committee on Transportation and Infrastructure that pro14 vides a preliminary plan for the implementation of section 

15 70113 of title 46, United States Code. The plan shall— 

16 (1) provide the identification of Federal agen17 cies with maritime information relating to vessels, 

18 crew, passengers, cargo, and cargo shippers; 

19 (2) establish a timeline for coordinating the ef20 forts of those Federal agencies in the collection of 

21 maritime information; 

22 (3) establish a timeline for the incorporation of 

23 information on vessel movements derived through 
8 

•S 2279 RS 

1 the implementation of sections 70114 and 70115 of 

2 title 46, United States Code; 

3 (4) include recommendations on co-locating 

4 agency personnel in order to maximize expertise, 

5 minimize cost, and avoid redundancy; 

6 (5) include recommendations on how to leverage 

7 information on commercial maritime information col8 lected by the Department of the Navy, and identify 

9 any legal impediments that would prevent or reduce 

10 the utilization of such information outside the De11 partment of the Navy; 

12 (6) include recommendations on educating Fed13 eral officials on commercial maritime operations in 

14 order to facilitate the identification of security risks 

15 posed through commercial maritime transportation 

16 operations; 

17 (7) include recommendations on how private 

18 sector resources could be utilized to collect or ana19 lyze information, along with a preliminary assess20 ment of the availability and expertise of private sec21 tor resources; 

22 (8) include recommendations on how to dissemi23 nate information collected and analyzed through 

24 Federal maritime security coordinator while consid25 ering the need for nondisclosure of sensitive security 
9 

•S 2279 RS 

1 information and the maximizing of security through 

2 the utilization of State, local, and private security 

3 personnel; and 

4 (9) include recommendations on how the De5 partment could help support a maritime information 

6 sharing and analysis center for the purpose of col7 lecting information from public and private entities, 

8 along with recommendations on the appropriate lev9 els of funding to help disseminate maritime security 

10 information to the private sector. 

11 SEC. 4. INTERMODAL CARGO SECURITY PLAN. 

12 (a) IN GENERAL.—In addition to the plan submitted 

13 under section 3, within 180 days after the date of enact14 ment of this Act, the Secretary of Homeland Security shall 

15 submit a report to the Senate Committee on Commerce, 

16 Science, and Transportation and the House of Represent17 atives Committee on Transportation and Infrastructure 

18 containing the following: 

19 (1) SECURE SYSTEMS OF TRANSPORTATION (46

20 U.S.C. 70116).—A plan, along with timelines, for the 

21 implementation of section 70116 of title 46, United 

22 States Code. The plan shall— 

23 (A) provide an update on current efforts 

24 by the Department of Homeland Security could 

25 be incorporated into the certification process 
10 

•S 2279 RS 

1 outlined in section 70116 to ensure the physical 

2 screening or inspection of imported cargo; 

3 (B) provide a preliminary assessment of 

4 resources necessary to evaluate and certify ‘‘Se5 cure Systems of Transportation’’, and the re6 sources necessary to validate that ‘‘Secure Sys7 tems of Transportation’’ are operating in com8 pliance with the certification requirements; and 

9 (C) contain an analysis of the feasibility of 

10 establishing a user fee in order to be able to 

11 evaluate, certify, and validate ‘‘Secure Systems 

12 of Transportation’’. 

13 (2) RADIATION DETECTORS.—A report on 

14 progress in the installation of a system of radiation 

15 detection at all major United States seaports, along 

16 with a timeline and expected completion date for the 

17 system. In the report, the Secretary shall include a 

18 preliminary analysis of any issues related to the in19 stallation of the radiation detection equipment, as 

20 well as a cost estimate for completing installation of 

21 the system. 

22 (3) NON-INTRUSIVE INSPECTION AT FOREIGN

23 PORTS.—A report— 

24 (A) on whether and to what extent foreign 

25 seaports have been willing to utilize screening 
11 

•S 2279 RS 

1 equipment at their ports to screen cargo, includ2 ing the number of cargo containers that have 

3 been screened at foreign seaports, and the ports 

4 where they were screened; 

5 (B) indicating which foreign ports may be 

6 willing to utilize their screening equipment for 

7 cargo exported for import into the United 

8 States, and a recommendation as to whether, 

9 and to what extent, United States cargo screen10 ing equipment will be required to be purchased 

11 and stationed at foreign seaports for inspection; 

12 and 

13 (C) indicating to what extent additional re14 sources and program changes will be necessary 

15 to maximize scrutiny of cargo in foreign sea16 ports. 

17 (4) COMPLIANCE WITH SECURITY STANDARD

18 PROGRAMS.—A plan to establish, validate, and en19 sure compliance with security standards that would 

20 require ports, terminals, vessel operators, and ship21 pers to adhere to security standards established by 

22 or consistent with the National Transportation Sys23 tem Security Plan. The plan shall indicate what re24 sources will be utilized, and how they would be uti-
12 

•S 2279 RS 

1 lized, to ensure that companies operate in compli2 ance with security standards. 

3 (b) EVALUATION OF CARGO INSPECTION TARGETING

4 SYSTEM FOR INTERNATIONAL INTERMODAL CARGO CON5 TAINERS.— 

6 (1) IN GENERAL.—Within 6 months after the 

7 date of enactment of this Act, and annually there8 after, the Inspector General of the Department of 

9 Homeland Security shall evaluate the system used 

10 by the Department to target international inter11 modal containers for inspection and report the re12 sults of the evaluation to the Senate Committee on 

13 Commerce, Science, and Transportation and the 

14 House of Representatives Committee on Transpor15 tation and Infrastructure. In conducting the evalua16 tion, the Inspector General shall assess— 

17 (A) the effectiveness of the current track18 ing system to determine whether it is adequate 

19 to prevent international intermodal containers 

20 from being used for purposes of terrorism; 

21 (B) the sources of information used by the 

22 system to determine whether targeting informa23 tion is collected from the best and most credible 

24 sources and evaluate data sources to determine 

25 information gaps and weaknesses; 
13 

•S 2279 RS 

1 (C) the targeting system for reporting and 

2 analyzing inspection statistics, as well as testing 

3 effectiveness; 

4 (D) the competence and training of em5 ployees operating the system to determine 

6 whether they are sufficiently capable to detect 

7 potential terrorist threats; and 

8 (E) whether the system is an effective sys9 tem to detect potential acts of terrorism and 

10 whether additional steps need to be taken in 

11 order to remedy deficiencies in targeting inter12 national intermodal containers for inspection. 

13 (2) INCREASE IN INSPECTIONS.—If the Inspec14 tor General determines in any of the reports re15 quired by paragraph (1) that the targeting system is 

16 insufficiently effective as a means of detecting poten17 tial acts of terrorism utilizing international inter18 modal containers, then within 12 months after that 

19 report, the Secretary of Homeland Security shall 

20 double the number of containers subjected to intru21 sive or non-intrusive inspection at United States 

22 ports or to be shipped to the United States at for23 eign seaports. 

24 (c) REPORT AND PLAN FORMATS.—The Secretary 

25 and the Inspector General may submit any plan or report 
14 

•S 2279 RS 

1 required by this section in both classified and redacted for2 mats if the Secretary determines that it is appropriate or 

3 necessary. 

4 SEC. 5. JOINT OPERATIONS CENTER FOR PORT SECURITY. 

5 The Commandant of the United States Coast Guard 

6 shall report to Congress, within 180 days after the date 

7 of enactment of this Act, on the potential benefits of estab8 lishing joint operational centers for port security at certain 

9 United States seaports. The report shall consider the 3 

10 Joint Operational Centers that have been established at 

11 Norfolk, Charleston, San Diego, and elsewhere and com12 pare and contrast their composition and operational char13 acteristics. The report shall consider— 

14 (1) whether it would be beneficial to establish 

15 linkages to Federal maritime information systems 

16 established pursuant to section 70113 of title 46, 

17 United States Code; 

18 (2) whether the operational centers could be 

19 beneficially utilized to track vessel movements under 

20 sections 70114 and 70115 of title 46, United States 

21 Code; 

22 (3) whether the operational centers could be 

23 beneficial in the facilitation of intermodal cargo se24 curity programs such as the ‘‘Secure Systems of 

25 Transportation Program’’; 
15 

•S 2279 RS 

1 (4) the extent to which such operational centers 

2 could be beneficial in the operation of maritime area 

3 security plans and maritime area contingency re4 sponse plans and in coordinating the port security 

5 activities of Federal, State, and local officials; and 

6 (5) include recommendations for the number of 

7 centers and their possible location, as well as pre8 liminary cost estimates for the operation of the cen9 ters. 

10 SEC. 6. MARITIME TRANSPORTATION SECURITY PLAN 

11 GRANTS. 

12 Section 70107(a) of title 46, United States Code, is 

13 amended to read as follows: 

14 ‘‘(a) IN GENERAL.—The Under Secretary of Home15 land Security for Border and Transportation Security 

16 shall establish a grant program for making a fair and eq17 uitable allocation of funds to implement Area Maritime 

18 Transportation Security Plans and to help fund compli19 ance with Federal security plans among port authorities, 

20 facility operators, and State and local agencies required 

21 to provide security services. Grants shall be made on the 

22 basis of the need to address vulnerabilities in security sub23 ject to review and comment by the appropriate Federal 

24 Maritime Security Coordinators and the Maritime Admin25 istration. The grant program shall take into account na-
16 

•S 2279 RS 

1 tional economic and strategic defense concerns and shall 

2 be coordinated with the Director of the Office of Domestic 

3 Preparedness to ensure that the grant process is con4 sistent with other Department of Homeland Security 

5 grant programs.’’. 

6 SEC. 7. ASSISTANCE FOR FOREIGN PORTS. 

7 Section 70109 of title 46, United States Code, is 

8 amended— 

9 (1) by striking ‘‘The Secretary’’ in subsection 

10 (b) and inserting ‘‘The Administrator of the Mari11 time Administration’’; and 

12 (2) by adding at the end the following: 

13 ‘‘(c) FOREIGN ASSISTANCE PROGRAMS.—The Ad14 ministrator of the Maritime Administration, in coordina15 tion with the Secretary of State, shall identify foreign as16 sistance programs that could facilitate implementation of 

17 port security antiterrorism measures in foreign countries. 

18 The Administrator and the Secretary shall establish a pro19 gram to utilize those programs that are capable of imple20 menting port security antiterrorism measures at ports in 

21 foreign countries that the Secretary finds, under section 

22 70108, to lack effective antiterrorism measures.’’. 
17 

•S 2279 RS 

1 SEC. 8. FEDERAL AND STATE COMMERCIAL MARITIME 

2 TRANSPORTATION TRAINING. 

3 Section 109 of the Maritime Transportation Security 

4 Act of 2002 (46 U.S.C. 70101 note) is amended— 

5 (1) by redesignating subsections (c) through (f) 

6 as subsections (d) through (g), respectively; and 

7 (2) by inserting after subsection (b) the fol8 lowing: 

9 ‘‘(c) FEDERAL AND STATE COMMERCIAL MARITIME

10 TRANSPORTATION TRAINING.—The Secretary of Trans11 portation shall establish a curriculum, to be incorporated 

12 into the curriculum developed under subsection (a)(1), to 

13 educate and instruct Federal and State officials on com14 mercial maritime and intermodal transportation. The cur15 riculum shall be designed to familiarize those officials with 

16 commercial maritime transportation in order to facilitate 

17 performance of their commercial maritime and intermodal 

18 transportation security responsibilities. In developing the 

19 standards for the curriculum, the Secretary shall consult 

20 with each agency in the Department of Homeland Security 

21 with maritime security responsibilities to determine areas 

22 of educational need. The Secretary shall also coordinate 

23 with the Federal Law Enforcement Training Center in the 

24 development of the curriculum and the provision of train25 ing opportunities for Federal and State law enforcement 

26 officials at appropriate law enforcement training facilities. 
18 

•S 2279 RS 

1 SEC. 9. RESEARCH AND DEVELOPMENT. 

2 (a) IN GENERAL.—Section 70107 of title 46, United 

3 States Code, is amended by striking subsection (i) and in4 serting the following: 

5 ‘‘(i) RESEARCH AND DEVELOPMENT.— 

6 ‘‘(1) IN GENERAL.—As part of the research and 

7 development program within the Science and Tech8 nology directorate, the Secretary of Homeland Secu9 rity shall conduct investigations, fund pilot pro10 grams, award grants, and otherwise conduct re11 search and development across the various portfolios 

12 focused on making United States ports safer and 

13 more secure. Research conducted under this sub14 section may include— 

15 ‘‘(A) methods or programs to increase the 

16 ability to target for inspection vessels, cargo, 

17 crewmembers, or passengers that will arrive or 

18 have arrived at any port or place in the United 

19 States; 

20 ‘‘(B) equipment to detect accurately explo21 sives, chemical, or biological agents that could 

22 be used to commit terrorist acts against the 

23 United States; 

24 ‘‘(C) equipment to detect accurately nu25 clear or radiological materials, including scin26 tillation-based detection equipment capable of 
19 

•S 2279 RS 

1 signalling the presence of nuclear or radio2 logical materials; 

3 ‘‘(D) improved tags and seal designed for 

4 use on shipping containers to track the trans5 portation of the merchandise in such con6 tainers, including ‘smart sensors’ that are able 

7 to track a container throughout its entire sup8 ply chain, detect hazardous and radioactive ma9 terials within that container, and transmit that 

10 information to the appropriate law enforcement 

11 authorities; 

12 ‘‘(E) tools, including the use of satellite 

13 tracking systems, to increase the awareness of 

14 maritime areas and to identify potential ter15 rorist threats that could have an impact on fa16 cilities, vessels, and infrastructure on or adja17 cent to navigable waterways, including under18 water access; 

19 ‘‘(F) tools to mitigate the consequences of 

20 a terrorist act on, adjacent to, or under navi21 gable waters of the United States, including 

22 sensor equipment, and other tools to help co23 ordinate effective response to a terrorist action; 

24 and 
20 

•S 2279 RS 

1 ‘‘(G) applications to apply existing tech2 nologies from other areas or industries to in3 crease overall port security. 

4 ‘‘(2) IMPLEMENTATION OF TECHNOLOGY.— 

5 ‘‘(A) IN GENERAL.—In conjunction with 

6 ongoing efforts to improve security at United 

7 States ports, the Director of the Science and 

8 Technology Directorate, in consultation with 

9 other Department of Homeland Security agen10 cies with responsibility for port security, may 

11 conduct pilot projects at United States ports to 

12 test the effectiveness and applicability of new 

13 port security projects, including— 

14 ‘‘(i) testing of new detection and 

15 screening technologies; 

16 ‘‘(ii) projects to protect United States 

17 ports and infrastructure on or adjacent to 

18 the navigable waters of the United States, 

19 including underwater access; and 

20 ‘‘(iii) tools for responding to a ter21 rorist threat or incident at United States 

22 ports and infrastructure on or adjacent to 

23 the navigable waters of the United States, 

24 including underwater access. 
21 

•S 2279 RS 

1 ‘‘(B) AUTHORIZATION OF APPROPRIA2 TIONS.—There are authorized to be appro3 priated to the Secretary of Homeland Security 

4 $35,000,000 for each of fiscal years 2005 

5 through 2009 to carry out pilot projects under 

6 subparagraph (A). 

7 ‘‘(3) ADMINISTRATIVE PROVISIONS.— 

8 ‘‘(A) NO DUPLICATION OF EFFORT.—Be9 fore making any grant, the Secretary of Home10 land Security shall coordinate with other Fed11 eral agencies to ensure the grant will not be 

12 used for research and development that is al13 ready being conducted with Federal funding. 

14 ‘‘(B) ACCOUNTING.—The Secretary of 

15 Homeland Security shall by regulation establish 

16 accounting, reporting, and review procedures to 

17 ensure that funds made available under para18 graph (1) are used for the purpose for which 

19 they were made available, that all expenditures 

20 are properly accounted for, and that amounts 

21 not used for such purposes and amounts not ex22 pended are recovered. 

23 ‘‘(C) RECORDKEEPING.—Recipients of 

24 grants shall keep all records related to expendi25 tures and obligations of funds provided under 
22 

•S 2279 RS 

1 paragraph (1) and make them available upon 

2 request to the Inspector General of the Depart3 ment of Homeland Security and the Secretary 

4 of Homeland Security for audit and examina5 tion.’’. 

6 (b) ANNUAL REPORT.—Within 30 days after the be7 ginning of each fiscal year from fiscal year 2005 through 

8 fiscal year 2009, the Director of the Science and Tech9 nology Directorate shall submit a report describing its re10 search that can be applied to port security to the Senate 

11 Committee on Commerce, Science, and Transportation, 

12 the House of Representatives Committee on Science, and 

13 the House of Representatives Select Committee on Home14 land Security. The report shall— 

15 (1) describe any port security-related research, 

16 including grants and pilot projects, that were con17 ducted in the preceding fiscal year; 

18 (2) describe the amount of Department of 

19 Homeland Security resources dedicated to research 

20 that can be applied to port security; 

21 (3) describe the steps taken to coordinate with 

22 other agencies within the Department to ensure that 

23 research efforts are coordinated with port security 

24 efforts; 
23 

•S 2279 RS 

1 (4) describe how the results of the Depart2 ment’s research, as well as port security related re3 search of the Department of Defense, will be imple4 mented in the field, including predicted timetables; 

5 (5) lay out the plans for research in the current 

6 fiscal year; and 

7 (6) include a description of the funding levels 

8 for the research in the preceding, current, and next 

9 fiscal years. 

10 SEC. 10. NUCLEAR FACILITIES IN MARITIME AREAS. 

11 (a) WATERWAYS.—Section 70103(b) is amended by 

12 adding at the end thereof the following: 

13 ‘‘(5) WATERWAYS LOCATED NEAR NUCLEAR FACILI14 TIES.— 

15 ‘‘(A) IDENTIFICATION AND SECURITY EVALUA16 TION.—The Secretary shall— 

17 ‘‘(i) identify all nuclear facilities on, adja18 cent to, or in close proximity to navigable wa19 terways that might be damaged by a transpor20 tation security incident; 

21 ‘‘(ii) in coordination with the Secretary of 

22 Energy, evaluate the security plans of each 

23 such nuclear facility for its adequacy to protect 

24 the facility from damage or disruption from a 

25 transportation security incident originating in 
24 

•S 2279 RS 

1 the navigable waterway, including threats posed 

2 by navigation, underwater access, and the intro3 duction of harmful substances into water cool4 ant systems. 

5 ‘‘(B) RECTIFICATION OF DEFICIENCIES.—The 

6 Secretary, in coordination with the Secretary of En7 ergy, shall take such steps as may be necessary or 

8 appropriate to correct any deficiencies in security 

9 identified in the evaluations conducted under sub10 paragraph (A). 

11 ‘‘(C) REPORT.—As soon as practicable after 

12 completion of the evaluation under subparagraph 

13 (A), the Secretary shall transmit a report, in both 

14 classified and redacted format, to the Senate Com15 mittee on Commerce, Science, and Transportation, 

16 the House of Representatives Committee on Trans17 portation and Infrastructure, and the House of Rep18 resentatives Select Committee on Homeland Secu19 rity— 

20 ‘‘(i) describing the results of the identifica21 tion and evaluation required by subparagraph 

22 (A); 

23 ‘‘(ii) describing the actions taken under 

24 subparagraph (B); and 
25 

•S 2279 RS 

1 ‘‘(iii) evaluating the technology utilized in 

2 the protection of nuclear facilities (including 

3 any such technology under development).’’. 

4 (b) VESSELS.—Section 70103(c)(3) of title 46, 

5 United States Code, is amended— 

6 (1) by striking ‘‘and’’ after the semicolon in 

7 subparagraph (F); 

8 (2) by striking ‘‘facility.’’ in subparagraph (G) 

9 and inserting ‘‘facility; and’’; and 

10 (3) by adding at the end the following: 

11 ‘‘(H) establish a requirement, coordinated with 

12 the Department of Energy, for criminal background 

13 checks of all United States and foreign seamen em14 ployed on vessels transporting nuclear materials in 

15 the navigable waters of the United States.’’. 

16 SEC. 11. TRANSPORTATION WORKER BACKGROUND INVES17 TIGATION PROGRAMS. 

18 Within 120 days after the date of enactment of this 

19 Act, the Secretary of Homeland Security, after consulta20 tion with the Secretary of Transportation, shall transmit 

21 a report to the Senate Committee on Commerce, Science, 

22 and Transportation and the House of Representatives 

23 Committee on Transportation and Infrastructure— 

24 (1) making recommendations (including legisla25 tive recommendations, if appropriate or necessary) 
26 

•S 2279 RS 

1 for harmonizing, combining, or coordinating require2 ments, procedures, and programs for conducting 

3 background checks under section 70105 of title 46, 

4 United States Code, section 5103a(c) of title 49, 

5 United States Code, section 44936 of title 49, 

6 United States Code, and other provisions of Federal 

7 law or regulations requiring background checks for 

8 individuals engaged in transportation or transpor9 tation-related activities; and 

10 (2) setting forth a detailed timeline for imple11 mentation of such harmonization, combination, or 

12 coordination. 

13 SEC. 12. SECURITY SERVICE FEE. 

14 (a) IN GENERAL.—Chapter 701 of title 46, United 

15 States Code, as amended by section 2, is further amended 

16 by adding at the end the following: 

17 ‘‘§ 70121. Security service fee 

18 ‘‘(a) IN GENERAL.— 

19 ‘‘(1) SECURITY FEE.—Within 90 days after the 

20 date of enactment of the Maritime Transportation 

21 Security Act of 2004, the Secretary of Homeland 

22 Security shall assess and collect an international 

23 port security service fee on commercial maritime 

24 transportation entities that benefit from a secure 

25 system of international maritime transportation to 
27 

•S 2279 RS 

1 pay for the costs of providing port security services. 

2 The amount of the fees assessed and collected under 

3 this paragraph and paragraph (2) shall, in the ag4 gregate, be sufficient to provide the services and lev5 els of funding described in section 70122(c). 

6 ‘‘(2) INTERNATIONAL TRANSSHIPMENT SECU7 RITY FEE.—The Secretary shall also assess and col8 lect an international maritime transshipment secu9 rity user fee for providing security services for ship10 ments of cargo and transportation of passengers en11 tering the United States as part of an international 

12 transportation movement by water through Cana13 dian or Mexican ports at the same rates as the fee 

14 imposed under paragraph (1). The fee authorized by 

15 this paragraph shall not be assessed or collected on 

16 transshipments from— 

17 (A) Canada after the date on which the 

18 Secretary determines that an agreement be19 tween the United States and Canada, or 

20 (B) Mexico after the date on which the 

21 Secretary determines that an agreement be22 tween the United States and Mexico, 

23 has entered into force that will provide equivalent se24 curity regimes and international maritime security 
28 

•S 2279 RS 

1 user fees of the United States and that country for 

2 transshipments between the countries. 

3 ‘‘(b) SCHEDULE OF FEES.—In imposing fees under 

4 subsection (a), the Secretary shall ensure that the fees are 

5 reasonably related to the costs of providing services ren6 dered and the value of the benefit derived from the con7 tinuation of secure international maritime transportation. 

8 ‘‘(c) IMPOSITION OF FEE.— 

9 ‘‘(1) IN GENERAL.—Notwithstanding section 

10 9701 of title 31 and the procedural requirements of 

11 section 553 of title 5, the Secretary shall impose the 

12 fees under subsection (a) through the publication of 

13 notice in the Federal Register and begin collection of 

14 the fee within 60 days of the date of enactment of 

15 the Maritime Transportation Security Act of 2004, 

16 or as soon as possible thereafter. No fee shall be as17 sessed more than once, and no fee shall be assessed 

18 for international ferry voyages. 

19 ‘‘(2) MEANS OF COLLECTION.—The Secretary 

20 shall prescribe procedures to collect fees under this 

21 section. The Secretary may use a department, agen22 cy, or instrumentality of the United States Govern23 ment or of a State or local government to collect the 

24 fee and may reimburse the department, agency, or 

25 instrumentality a reasonable amount for its services. 
29 

•S 2279 RS 

1 ‘‘(3) SUBSEQUENT MODIFICATION OF FEE.— 

2 After imposing a fee under subsection (a), the Sec3 retary may modify, from time to time through publi4 cation of notice in the Federal Register, the imposi5 tion or collection of such fee, or both. The Secretary 

6 shall evaluate the fee annually to determine whether 

7 it is necessary and appropriate to pay the cost of ac8 tivities and services, and shall adjust the amount of 

9 the fee accordingly. 

10 ‘‘(4) LIMITATION ON COLLECTION.—No fee 

11 may be collected under this section except to the ex12 tent that the expenditure of the fee to pay the costs 

13 of activities and services for which the fee is imposed 

14 is provided for in advance in an appropriations Act. 

15 ‘‘(d) ADMINISTRATION OF FEES.— 

16 ‘‘(1) FEES PAYABLE TO SECRETARY.—All fees 

17 imposed and amounts collected under this section 

18 are payable to the Secretary. 

19 ‘‘(2) INFORMATION.—The Secretary may re20 quire the provision of such information as the Sec21 retary decides is necessary to verify that fees have 

22 been collected and remitted at the proper times and 

23 in the proper amounts. 
30 

•S 2279 RS 

1 ‘‘(e) RECEIPTS CREDITED AS OFFSETTING COLLEC2 TIONS.—Notwithstanding section 3302 of title 31, any fee 

3 collected under this section— 

4 ‘‘(1) shall be credited as offsetting collections to 

5 the account that finances the activities and services 

6 for which the fee is imposed; 

7 ‘‘(2) shall be available for expenditure only to 

8 pay the costs of activities and services for which the 

9 fee is imposed; and 

10 ‘‘(3) shall remain available until expended. 

11 ‘‘(f) REFUNDS.—The Secretary may refund any fee 

12 paid by mistake or any amount paid in excess of that re13 quired. 

14 ‘‘(g) SUNSET.—The fees authorized by subsection (a) 

15 may not be assessed after September 31, 2009.’’. 

16 (b) CONFORMING AMENDMENT.—The chapter anal17 ysis for chapter 701 of title 46, United States Code, as 

18 amended by section 2, is amended by adding at the end 

19 the following: 

‘‘70121. Security service fee.’’. 

20 SEC. 13. PORT SECURITY CAPITAL FUND. 

21 (a) IN GENERAL.—Chapter 701 of title 46, United 

22 States Code, as amended by section 11, is further amend23 ed by adding at the end the following: 
31 

•S 2279 RS 

1 ‘‘§ 70122. Port security capital fund. 

2 ‘‘(a) IN GENERAL.—There is established within the 

3 Department of Homeland Security a fund to be known 

4 as the Port Security Capital Fund. There are appropriated 

5 to the Fund such sums as may be derived from the fees 

6 authorized by section 70121(a). 

7 ‘‘(b) PURPOSE.—Amounts in the Fund shall be avail8 able to the Secretary of Homeland Security— 

9 ‘‘(1) to provide financial assistance to port au10 thorities, facility operators, and State and local 

11 agencies required to provide security services to de12 fray capital investment in transportation security at 

13 port facilities in accordance with the provisions of 

14 this chapter; 

15 ‘‘(2) to provide financial assistance to those en16 tities required to provide security services to help en17 sure compliance with Federal area maritime security 

18 plans; and 

19 ‘‘(3) to help defray the costs of Federal port se20 curity programs. 

21 ‘‘(c) ALLOCATION OF FUNDS.— 

22 ‘‘(1) FUNDS DERIVED FROM SECURITY FEES.— 

23 From amounts in the Fund attributable to fees col24 lected under section 70121(a)(1) and (2)— 

25 ‘‘(A) no less than $400,000,000 (or such 

26 amount as may be appropriate to reflect any 
32 

•S 2279 RS 

1 modification of the fees under section 

2 70121(c)(3)) shall be made available each fiscal 

3 year for grants under section 70107 to help en4 sure compliance with facility security plans or 

5 to help implement Area Maritime Transpor6 tation Security Plans; 

7 ‘‘(B) funds shall be made available to the 

8 Coast Guard for the costs of implementing sec9 tions 70114 and 70115 fully by the end of fis10 cal year 2006; 

11 ‘‘(C) funds shall be made available to the 

12 Coast Guard for the costs of establishing com13 mand and control centers at United States 

14 ports to help coordinate port security law en15 forcement activities and implementing Area 

16 Maritime Security Plans, and may be trans17 ferred, as appropriate, to port authorities, facil18 ity operators, and State and local government 

19 agencies to help them defray costs associated 

20 with port security services; 

21 ‘‘(D) funds shall be made available to the 

22 Under Secretary of Homeland Security for Bor23 der and Transportation Security for the costs of 

24 implementing cargo security programs, includ-
33 

•S 2279 RS 

1 ing the costs of certifying secure systems of 

2 transportation under section 70116; 

3 ‘‘(E) funds shall be made available to the 

4 Under Secretary of Homeland Security for Bor5 der and Transportation Security for the costs of 

6 acquiring and operating nonintrusive screening 

7 equipment at United States ports; and 

8 ‘‘(F) funds shall be made available to the 

9 Transportation Security Administration for the 

10 costs of implementing of section 70113 and the 

11 collection of commercial maritime intelligence 

12 (including the collection of commercial maritime 

13 transportation information from the private sec14 tor), of which a portion shall be made available 

15 to the Coast Guard and the Customs Service 

16 only for the purpose of coordinating the system 

17 of collecting and analyzing information on ves18 sels, crew, passengers, cargo, and intermodal 

19 shipments. 

20 ‘‘(2) TRANSSHIPMENT FEES.—Amounts in the 

21 Fund attributable to fees collected under section 

22 70121(a)(3), shall be made available to the Sec23 retary to defray the costs of providing international 

24 maritime transshipment security at the United 

25 States borders with Canada and Mexico. 
34 

•S 2279 RS 

1 ‘‘(d) UTILIZATION REPORTS.—The Commandant of 

2 the Coast Guard and the Secretary of Homeland Security 

3 shall report annually to the Senate Committee on Com4 merce, Science, and Transportation and the House of Rep5 resentatives Committee on Transportation and Infrastruc6 ture on utilization of amounts received from the Fund. 

7 ‘‘(e) LETTERS OF INTENT.—The Secretary of Home8 land Security, or his delegate, may execute letters of intent 

9 to commit funding to port sponsors from the Fund.’’. 

10 (f) CONFORMING AMENDMENT.—The chapter anal11 ysis for chapter 701 of title 46, United States Code, as 

12 amended by section 11, is amended by adding at the end 

13 the following: 

‘‘70122. Port security capital fund.’’. 

14 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

15 (a) SHORT TITLE.—This Act may be cited as the 

16 ‘‘Maritime Transportation Security Act of 2004’’. 

17 (b) TABLE OF CONTENTS.—The table of contents for 

18 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. Report on cruise ship security. 

Sec. 13. Report on design of maritime security grant programs. 
35 

•S 2279 RS 

1 SEC. 2. IN REM LIABILITY; ENFORCEMENT; PIER AND 

2 WHARF SECURITY COSTS. 

3 (a) IN GENERAL.—Chapter 701 of title 46, United 

4 States Code, is amended— 

5 (1) by redesignating section 70117 as 70120; and 

6 (2) by inserting after section 70116 the fol7 lowing: 

8 ‘‘§ 70117. In rem liability for civil penalties and cer9 tain costs 

10 ‘‘(a) IN GENERAL.—Any vessel subject to the provi11 sions of this chapter, which is used in violation of this chap12 ter or any regulations issued hereunder shall be liable in 

13 rem for any civil penalty assessed pursuant to section 

14 70120 and may be proceeded against in the United States 

15 district court for any district in which such vessel may be 

16 found. 

17 ‘‘(b) REIMBURSABLE COSTS.— 

18 ‘‘(1) IN GENERAL.—Any vessel subject to the pro19 visions of this chapter shall be liable in rem for the 

20 reimbursable costs incurred by any valid claimant re21 lated to implementation and enforcement of this chap22 ter with respect to the vessel, including port authori23 ties, facility or terminal operators, shipping agents, 

24 Federal, State, or local government agencies, and 

25 other persons to whom the management of the vessel 

26 at the port of supply is entrusted, and any fine or 
36 

•S 2279 RS 

1 penalty relating to reporting requirements of the ves2 sel or its cargo, crew, or passengers, and may be pro3 ceeded against in the United States district court for 

4 any district in which such vessel may be found. 

5 ‘‘(2) REIMBURSABLE COSTS DEFINED.—In this 

6 subsection the term ‘reimbursable costs’ means costs 

7 incurred by any service provider, including port au8 thorities, facility or terminal operators, shipping 

9 agents, Federal, State, or local government agencies, 

10 or other person to whom the management of the vessel 

11 at the port of supply is entrusted, for— 

12 ‘‘(A) vessel crew on board, or in transit to 

13 or from, the vessel under lawful order, including 

14 accommodation, detention, transportation, and 

15 medical expenses; and 

16 ‘‘(B) required handling under lawful order 

17 of cargo or other items on board the vessel. 

18 ‘‘§ 70118. Enforcement by injunction or withholding of 

19 clearance 

20 ‘‘(a) INJUNCTION.—The United States district courts 

21 shall have jurisdiction to restrain violations of this chapter 

22 or of regulations issued hereunder, for cause shown. 

23 ‘‘(b) WITHHOLDING OF CLEARANCE.— 

24 ‘‘(1) If any owner, agent, master, officer, or per25 son in charge of a vessel is liable for a penalty or fine 
37 

•S 2279 RS 

1 under section 70120, or if reasonable cause exists to 

2 believe that the owner, agent, master, officer, or per3 son in charge may be subject to a penalty under sec4 tion 70120, the Secretary may, with respect to such 

5 vessel, refuse or revoke any clearance required by sec6 tion 4197 of the Revised Statutes of the United States 

7 (46 U.S.C. App. 91). 

8 ‘‘(2) Clearance refused or revoked under this sub9 section may be granted upon filing of a bond or other 

10 surety satisfactory to the Secretary. 

11 ‘‘§ 70119. Security of piers and wharfs 

12 ‘‘(a) IN GENERAL.—Notwithstanding any other provi13 sion of law, the Secretary shall require any uncleared, im14 ported merchandise remaining on the wharf or pier onto 

15 which it was unladen for more than 5 calendar days to 

16 be removed from the wharf or pier and deposited in the 

17 public stores or a general order warehouse, where it shall 

18 be inspected for determination of contents, and thereafter 

19 a permit for its delivery may be granted. 

20 ‘‘(b) PENALTY.—The Secretary may impose an admin21 istrative penalty of $5,000 for each bill of lading for general 

22 order merchandise remaining on a wharf or pier in viola23 tion of subsection (a).’’. 
38 

•S 2279 RS 

1 (b) CONFORMING AMENDMENT FOR IN REM LIABILITY

2 PROVISION IN CHAPTER 701.—Section 2 of the Act of June 

3 15, 1917 (50 U.S.C. 192) is amended— 

4 (1) by striking ‘‘Act,’’ each place it appears in 

5 subsection (c) and inserting ‘‘title,’’; and 

6 (2) by adding at the end the following: 

7 ‘‘(d) IN REM LIABILITY.—Any vessel subject to the pro8 visions of this title that is used in violation of this title, 

9 or any regulations issued hereunder, shall be liable in rem 

10 for any civil penalty assessed pursuant to subsection (c) 

11 and may be proceeded against in the United States district 

12 court for any district in which such vessel may be found. 

13 ‘‘(e) INJUNCTION.—The United States district courts 

14 shall have jurisdiction to restrain violations of this title or 

15 of regulations issued hereunder, for cause shown. 

16 ‘‘(f) WITHHOLDING OF CLEARANCE.— 

17 ‘‘(1) If any owner, agent, master, officer, or per18 son in charge of a vessel is liable for a penalty or fine 

19 under subsection (c), or if reasonable cause exists to 

20 believe that the owner, agent, master, officer, or per21 son in charge may be subject to a penalty or fine 

22 under subsection (c), the Secretary may, with respect 

23 to such vessel, refuse or revoke any clearance required 

24 by section 4197 of the Revised Statutes of the United 

25 States (46 U.S.C. App. 91). 
39 

•S 2279 RS 

1 ‘‘(2) Clearance refused or revoked under this sub2 section may be granted upon filing of a bond or other 

3 surety satisfactory to the Secretary of the Department 

4 in which the Coast Guard is operating.’’. 

5 (c) EMPTY CONTAINERS.—Within 90 days after the 

6 date of enactment of this Act, the Secretary of Homeland 

7 Security shall review United States ports and transmit to 

8 the Senate Committee on Commerce, Science, and Trans9 portation and the House of Representatives Committee on 

10 Transportation and Infrastructure a report on the practices 

11 and policies in place to secure shipment of empty con12 tainers. The Secretary shall include in the report rec13 ommendations with respect to whether additional regula14 tions or legislation is necessary to ensure the safe and secure 

15 delivery of cargo and to prevent potential acts of terrorism 

16 involving such containers. 

17 (d) CLERICAL AMENDMENT.—The chapter analysis for 

18 chapter 701 of title 46, United States Code, is amended by 

19 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’’. 

20 SEC. 3. MARITIME INFORMATION. 

21 Within 90 days after the date of enactment of this Act, 

22 the Secretary of Homeland Security shall submit a report 

23 to the Senate Committee on Commerce, Science, and Trans-
40 

•S 2279 RS 

1 portation and the House of Representatives Committee on 

2 Transportation and Infrastructure that provides a prelimi3 nary plan for the implementation of section 70113 of title 

4 46, United States Code. The plan shall— 

5 (1) identify Federal agencies with maritime in6 formation relating to vessels, crew, passengers, cargo, 

7 and cargo shippers, those agencies’ maritime informa8 tion collection and analysis activities, and the re9 sources devoted to those activities; 

10 (2) establish a lead agency within the Depart11 ment of Homeland Security to coordinate the efforts 

12 of other Department agencies in the collection of mar13 itime information and to identify and avoid un14 wanted redundancy in those efforts; 

15 (3) establish a timeline for coordinating the ef16 forts of those Federal agencies in the collection of 

17 maritime information; 

18 (4) include recommendations on co-locating 

19 agency personnel in order to maximize expertise, 

20 minimize costs, and avoid redundancy in both the 

21 collection and analysis of maritime information; 

22 (5) establish a timeline for the incorporation of 

23 information on vessel movements derived through the 

24 implementation of sections 70114 and 70115 of title 

25 46, United States Code; 
41 

•S 2279 RS 

1 (6) include recommendations on how to leverage 

2 information on commercial maritime information col3 lected by the Department of the Navy, and identify 

4 any legal impediments that would prevent or reduce 

5 the utilization of such information outside the De6 partment of the Navy; 

7 (7) include recommendations on educating Fed8 eral officials on commercial maritime operations in 

9 order to facilitate the identification of security risks 

10 posed through commercial maritime transportation 

11 operations; 

12 (8) include recommendations on how private sec13 tor resources could be utilized to collect or analyze in14 formation, along with a preliminary assessment of the 

15 availability and expertise of private sector resources; 

16 (9) include recommendations on how to dissemi17 nate information collected and analyzed through Fed18 eral maritime security coordinator while considering 

19 the need for nondisclosure of sensitive security infor20 mation and the maximizing of security through the 

21 utilization of State, local, and private security per22 sonnel; and 

23 (10) include recommendations on the need for 

24 and how the Department could help support a mari25 time information sharing and analysis center for the 
42 

•S 2279 RS 

1 purpose of collecting and disseminating real-time or 

2 near real-time information to and from public and 

3 private entities, along with recommendations on the 

4 appropriate levels of funding to help disseminate 

5 maritime security information to the private sector. 

6 SEC. 4. INTERMODAL CARGO SECURITY PLAN. 

7 (a) IN GENERAL.—In addition to the plan submitted 

8 under section 3, within 180 days after the date of enactment 

9 of this Act, the Secretary of Homeland Security shall sub10 mit a report to the Senate Committee on Commerce, 

11 Science, and Transportation and the House of Representa12 tives Committee on Transportation and Infrastructure con13 taining the following: 

14 (1) SECURE SYSTEMS OF TRANSPORTATION.—A 

15 plan, along with timelines, for the implementation of 

16 section 70116 of title 46, United States Code. The 

17 plan shall— 

18 (A) provide an update on current efforts by 

19 the Department of Homeland Security to ensure 

20 the physical screening or inspection of imported 

21 cargo; 

22 (B) provide a preliminary assessment of re23 sources necessary to evaluate and certify secure 

24 systems of transportation, and the resources nec25 essary to validate that the secure systems of 
43 

•S 2279 RS 

1 transportation are operating in compliance with 

2 the certification requirements; 

3 (C) contain an analysis of the feasibility of 

4 establishing a user fee in order to be able to 

5 evaluate, certify, and validate secure systems of 

6 transportation; 

7 (D) contain an analysis of the need and 

8 feasibility of establishing a system to inspect, 

9 monitor, and track intermodal shipping con10 tainers within the United States; and 

11 (E) contain an analysis of the need and fea12 sibility for developing international standards 

13 for secure systems of transportation, including 

14 recommendations, that includes an examination 

15 of working with appropriate international orga16 nizations to develop standards to enhance the 

17 physical security of shipping containers con18 sistent with the provisions of section 70116 of 

19 title 46, United States Code. 

20 (2) RADIATION DETECTORS.—A report on 

21 progress in the installation of a system of radiation 

22 detection at all major United States seaports, along 

23 with a timeline and expected completion date for the 

24 system. In the report, the Secretary shall include a 

25 preliminary analysis of any issues related to the in-
44 

•S 2279 RS 

1 stallation or efficacy of the radiation detection equip2 ment, as well as a cost estimate for completing instal3 lation of the system. 

4 (3) NON-INTRUSIVE INSPECTION AT FOREIGN

5 PORTS.—A report— 

6 (A) on whether and to what extent foreign 

7 seaports have been willing to utilize screening 

8 equipment at their ports to screen cargo, includ9 ing the number of cargo containers that have 

10 been screened at foreign seaports, and the ports 

11 where they were screened; 

12 (B) indicating which foreign ports may be 

13 willing to utilize their screening equipment for 

14 cargo exported for import into the United States, 

15 and a recommendation as to whether, and to 

16 what extent, United States cargo screening 

17 equipment will be required to be purchased and 

18 stationed at foreign seaports for inspection; and 

19 (C) indicating ways to increase the effec20 tiveness of the targeting and screening activities 

21 of United States Customs Service inspectors who 

22 are stationed outside the United States and to 

23 what extent additional resources and program 

24 changes will be necessary to maximize scrutiny 
45 

•S 2279 RS 

1 of cargo in foreign seaports that is destined for 

2 the United States. 

3 (4) COMPLIANCE WITH SECURITY STANDARD

4 PROGRAMS.—A plan to establish, validate, and ensure 

5 compliance with security standards that would re6 quire ports, terminals, vessel operators, and shippers 

7 to adhere to security standards established by or con8 sistent with the National Transportation System Se9 curity Plan. The plan shall indicate what resources 

10 will be utilized, and how they would be utilized, to 

11 ensure that companies operate in compliance with se12 curity standards. 

13 (b) INSPECTOR GENERAL IMPLEMENTATION RE14 PORT.—One year after the date on which the plan described 

15 in subsection (a)(1) is submitted to the Committees, the In16 spector General of the Department of Homeland Security 

17 shall transmit a report to those Committees evaluating the 

18 progress made by the Department in implementing the 

19 plan. 

20 (c) EVALUATION OF CARGO INSPECTION TARGETING

21 SYSTEM FOR INTERNATIONAL INTERMODAL CARGO CON22 TAINERS.— 

23 (1) IN GENERAL.—Within 6 months after the 

24 date of enactment of this Act, and annually there25 after, the Inspector General of the Department of 
46 

•S 2279 RS 

1 Homeland Security shall evaluate the system used by 

2 the Department to target international intermodal 

3 containers for inspection and report the results of the 

4 evaluation to the Senate Committee on Commerce, 

5 Science, and Transportation and the House of Rep6 resentatives Committee on Transportation and Infra7 structure. In conducting the evaluation, the Inspector 

8 General shall assess— 

9 (A) the effectiveness of the current tracking 

10 system to determine whether it is adequate to 

11 prevent international intermodal containers 

12 from being used for purposes of terrorism; 

13 (B) the sources of information, and the 

14 quality of the information at the time of report15 ing, used by the system to determine whether tar16 geting information is collected from the best and 

17 most credible sources and evaluate data sources 

18 to determine information gaps and weaknesses; 

19 (C) the targeting system for reporting and 

20 analyzing inspection statistics, as well as testing 

21 effectiveness; 

22 (D) the competence and training of employ23 ees operating the system to determine whether 

24 they are sufficiently capable to detect potential 

25 terrorist threats; and 
47 

•S 2279 RS 

1 (E) whether the system is an effective sys2 tem to detect potential acts of terrorism and 

3 whether additional steps need to be taken in 

4 order to remedy deficiencies in targeting inter5 national intermodal containers for inspection. 

6 (2) INCREASE IN INSPECTIONS.—If the Inspector 

7 General determines in any of the reports required by 

8 paragraph (1) that the targeting system is insuffi9 ciently effective as a means of detecting potential acts 

10 of terrorism utilizing international intermodal con11 tainers, then within 12 months after that report, the 

12 Secretary of Homeland Security shall double the 

13 number of containers subjected to intrusive or non-in14 trusive inspection at United States ports or to be 

15 shipped to the United States at foreign seaports. 

16 (d) REPORT AND PLAN FORMATS.—The Secretary and 

17 the Inspector General may submit any plan or report re18 quired by this section in both classified and redacted for19 mats if the Secretary determines that it is appropriate or 

20 necessary. 

21 SEC. 5. JOINT OPERATIONS CENTER FOR PORT SECURITY. 

22 The Commandant of the United States Coast Guard 

23 shall report to Congress, within 180 days after the date of 

24 enactment of this Act, on the potential benefits of estab25 lishing joint operational centers for port security at certain 
48 

•S 2279 RS 

1 United States seaports. The report shall consider the 3 Joint 

2 Operational Centers that have been established at Norfolk, 

3 Charleston, San Diego, and elsewhere and compare and 

4 contrast their composition and operational characteristics. 

5 The report shall consider— 

6 (1) whether it would be beneficial to establish 

7 linkages to Federal maritime information systems es8 tablished pursuant to section 70113 of title 46, United 

9 States Code; 

10 (2) whether the operational centers could be bene11 ficially utilized to track vessel movements under sec12 tions 70114 and 70115 of title 46, United States 

13 Code; 

14 (3) whether the operational centers could be bene15 ficial in the facilitation of intermodal cargo security 

16 programs such as the secure systems of transportation 

17 program; 

18 (4) the extent to which such operational centers 

19 could be beneficial in the operation of maritime area 

20 security plans and maritime area contingency re21 sponse plans and in coordinating the port security 

22 activities of Federal, State, and local officials; and 

23 (5) include recommendations for the number of 

24 centers and their possible location, as well as prelimi25 nary cost estimates for the operation of the centers. 
49 

•S 2279 RS 

1 SEC. 6. MARITIME TRANSPORTATION SECURITY PLAN 

2 GRANTS. 

3 Section 70107(a) of title 46, United States Code, is 

4 amended to read as follows: 

5 ‘‘(a) IN GENERAL.—The Under Secretary of Homeland 

6 Security for Border and Transportation Security shall es7 tablish a grant program for making a fair and equitable 

8 allocation of funds to implement Area Maritime Transpor9 tation Security Plans and to help fund compliance with 

10 Federal security plans among port authorities, facility op11 erators, and State and local agencies required to provide 

12 security services. Grants shall be made on the basis of the 

13 need to address vulnerabilities in security subject to review 

14 and comment by the appropriate Federal Maritime Secu15 rity Coordinators and the Maritime Administration. The 

16 grant program shall take into account national economic 

17 and strategic defense concerns and shall be coordinated with 

18 the Director of the Office of Domestic Preparedness to en19 sure that the grant process is consistent with other Depart20 ment of Homeland Security grant programs.’’. 

21 SEC. 7. ASSISTANCE FOR FOREIGN PORTS. 

22 (a) IN GENERAL.—Section 70109 of title 46, United 

23 States Code, is amended— 

24 (1) by striking ‘‘The Secretary,’’ in subsection 

25 (b) and inserting ‘‘The Administrator of the Maritime 

26 Administration,’’; and 
50 

•S 2279 RS 

1 (2) by adding at the end the following: 

2 ‘‘(c) FOREIGN ASSISTANCE PROGRAMS.—The Admin3 istrator of the Maritime Administration, in coordination 

4 with the Secretary of State, shall identify foreign assistance 

5 programs that could facilitate implementation of port secu6 rity antiterrorism measures in foreign countries. The Ad7 ministrator and the Secretary shall establish a program to 

8 utilize those programs that are capable of implementing 

9 port security antiterrorism measures at ports in foreign 

10 countries that the Secretary finds, under section 70108, to 

11 lack effective antiterrorism measures.’’. 

12 (b) REPORT ON SECURITY AT PORTS IN THE CARIB13 BEAN BASIN.—Not later than 60 days after the date of en14 actment of this Act, the Secretary of Homeland Security 

15 shall submit to the Committee on Commerce, Science, and 

16 Transportation of the Senate and Committee on Transpor17 tation and Infrastructure of the House of Representatives 

18 a report on the security of ports in the Caribbean Basin. 

19 The report shall include the following: 

20 (1) An assessment of the effectiveness of the meas21 ures employed to improve security at ports in the 

22 Caribbean Basin and recommendations for any addi23 tional measures to improve such security. 

24 (2) An estimate of the number of ports in the 

25 Caribbean Basin that will not be secured by July 
51 

•S 2279 RS 

1 2004, and an estimate of the financial impact in the 

2 United States of any action taken pursuant to section 

3 70110 of title 46, United States Code, that affects 

4 trade between such ports and the United States. 

5 (3) An assessment of the additional resources 

6 and program changes that are necessary to maximize 

7 security at ports in the Caribbean Basin. 

8 SEC. 8. FEDERAL AND STATE COMMERCIAL MARITIME 

9 TRANSPORTATION TRAINING. 

10 Section 109 of the Maritime Transportation Security 

11 Act of 2002 (46 U.S.C. 70101 note) is amended— 

12 (1) by redesignating subsections (c) through (f) 

13 as subsections (d) through (g), respectively; and 

14 (2) by inserting after subsection (b) the fol15 lowing: 

16 ‘‘(c) FEDERAL AND STATE COMMERCIAL MARITIME

17 TRANSPORTATION TRAINING.—The Secretary of Transpor18 tation shall establish a curriculum, to be incorporated into 

19 the curriculum developed under subsection (a)(1), to educate 

20 and instruct Federal and State officials on commercial 

21 maritime and intermodal transportation. The curriculum 

22 shall be designed to familiarize those officials with commer23 cial maritime transportation in order to facilitate perform24 ance of their commercial maritime and intermodal trans25 portation security responsibilities. In developing the stand-
52 

•S 2279 RS 

1 ards for the curriculum, the Secretary shall consult with 

2 each agency in the Department of Homeland Security with 

3 maritime security responsibilities to determine areas of 

4 educational need. The Secretary shall also coordinate with 

5 the Federal Law Enforcement Training Center in the devel6 opment of the curriculum and the provision of training op7 portunities for Federal and State law enforcement officials 

8 at appropriate law enforcement training facilities.’’. 

9 SEC. 9. RESEARCH AND DEVELOPMENT. 

10 (a) IN GENERAL.—Section 70107 of title 46, United 

11 States Code, is amended by striking subsection (i) and in12 serting the following: 

13 ‘‘(i) RESEARCH AND DEVELOPMENT.— 

14 ‘‘(1) IN GENERAL.—As part of the research and 

15 development program within the Science and Tech16 nology directorate, the Secretary of Homeland Secu17 rity shall conduct investigations, fund pilot programs, 

18 award grants, and otherwise conduct research and de19 velopment across the various portfolios focused on 

20 making United States ports safer and more secure. 

21 Research conducted under this subsection may in22 clude— 

23 ‘‘(A) methods or programs to increase the 

24 ability to target for inspection vessels, cargo, 

25 crewmembers, or passengers that will arrive or 
53 

•S 2279 RS 

1 have arrived at any port or place in the United 

2 States; 

3 ‘‘(B) equipment to detect accurately explo4 sives, chemical, or biological agents that could be 

5 used to commit terrorist acts against the United 

6 States; 

7 ‘‘(C) equipment to detect accurately nuclear 

8 or radiological materials, including scintillation9 based detection equipment capable of signalling 

10 the presence of nuclear or radiological materials; 

11 ‘‘(D) improved tags and seals designed for 

12 use on shipping containers to track the transpor13 tation of the merchandise in such containers, in14 cluding ‘smart sensors’ that are able to track a 

15 container throughout its entire supply chain, de16 tect hazardous and radioactive materials within 

17 that container, and transmit that information to 

18 the appropriate law enforcement authorities; 

19 ‘‘(E) tools, including the use of satellite 

20 tracking systems, to increase the awareness of 

21 maritime areas and to identify potential ter22 rorist threats that could have an impact on fa23 cilities, vessels, and infrastructure on or adjacent 

24 to navigable waterways, including underwater 

25 access; 
54 

•S 2279 RS 

1 ‘‘(F) tools to mitigate the consequences of a 

2 terrorist act on, adjacent to, or under navigable 

3 waters of the United States, including sensor 

4 equipment, and other tools to help coordinate ef5 fective response to a terrorist action; 

6 ‘‘(G) applications to apply existing tech7 nologies from other areas or industries to in8 crease overall port security; and 

9 ‘‘(H) improved container design, including 

10 blast-resistant containers. 

11 ‘‘(2) IMPLEMENTATION OF TECHNOLOGY.— 

12 ‘‘(A) IN GENERAL.—In conjunction with on13 going efforts to improve security at United 

14 States ports, the Director of the Science and 

15 Technology Directorate, in consultation with 

16 other Department of Homeland Security agencies 

17 with responsibility for port security, may con18 duct pilot projects at United States ports to test 

19 the effectiveness and applicability of new port se20 curity projects, including— 

21 ‘‘(i) testing of new detection and 

22 screening technologies; 

23 ‘‘(ii) projects to protect United States 

24 ports and infrastructure on or adjacent to 
55 

•S 2279 RS 

1 the navigable waters of the United States, 

2 including underwater access; and 

3 ‘‘(iii) tools for responding to a terrorist 

4 threat or incident at United States ports 

5 and infrastructure on or adjacent to the 

6 navigable waters of the United States, in7 cluding underwater access. 

8 ‘‘(B) AUTHORIZATION OF APPROPRIA9 TIONS.—There are authorized to be appropriated 

10 to the Secretary of Homeland Security 

11 $35,000,000 for each of fiscal years 2005 through 

12 2009 to carry out pilot projects under subpara13 graph (A). 

14 ‘‘(3) ADMINISTRATIVE PROVISIONS.— 

15 ‘‘(A) NO DUPLICATION OF EFFORT.—Before 

16 making any grant, the Secretary of Homeland 

17 Security shall coordinate with other Federal 

18 agencies to ensure the grant will not be used for 

19 research and development that is already being 

20 conducted with Federal funding. 

21 ‘‘(B) ACCOUNTING.—The Secretary of 

22 Homeland Security shall by regulation establish 

23 accounting, reporting, and review procedures to 

24 ensure that funds made available under para25 graph (1) are used for the purpose for which they 
56 

•S 2279 RS 

1 were made available, that all expenditures are 

2 properly accounted for, and that amounts not 

3 used for such purposes and amounts not ex4 pended are recovered. 

5 ‘‘(C) RECORDKEEPING.—Recipients of 

6 grants shall keep all records related to expendi7 tures and obligations of funds provided under 

8 paragraph (1) and make them available upon re9 quest to the Inspector General of the Department 

10 of Homeland Security and the Secretary of 

11 Homeland Security for audit and examination.’’. 

12 (b) ANNUAL REPORT.—Within 30 days after the begin13 ning of each fiscal year from fiscal year 2005 through fiscal 

14 year 2009, the Director of the Science and Technology Di15 rectorate shall submit a report describing its research that 

16 can be applied to port security to the Senate Committee 

17 on Commerce, Science, and Transportation, the House of 

18 Representatives Committee on Science, and the House of 

19 Representatives Select Committee on Homeland Security. 

20 The report shall— 

21 (1) describe any port security-related research, 

22 including grants and pilot projects, that were con23 ducted in the preceding fiscal year; 
57 

•S 2279 RS 

1 (2) describe the amount of Department of Home2 land Security resources dedicated to research that can 

3 be applied to port security; 

4 (3) describe the steps taken to coordinate with 

5 other agencies within the Department to ensure that 

6 research efforts are coordinated with port security ef7 forts; 

8 (4) describe how the results of the Department’s 

9 research, as well as port security related research of 

10 the Department of Defense, will be implemented in 

11 the field, including predicted timetables; 

12 (5) lay out the plans for research in the current 

13 fiscal year; and 

14 (6) include a description of the funding levels for 

15 the research in the preceding, current, and next fiscal 

16 years. 

17 SEC. 10. NUCLEAR FACILITIES IN MARITIME AREAS. 

18 (a) WATERWAYS.—Section 70103(b) is amended by 

19 adding at the end thereof the following: 

20 ‘‘(5) WATERWAYS LOCATED NEAR NUCLEAR FACILI21 TIES.— 

22 ‘‘(A) IDENTIFICATION AND SECURITY EVALUA23 TION.—The Secretary shall— 

24 ‘‘(i) identify all nuclear facilities on, adja25 cent to, or in close proximity to navigable water-
58 

•S 2279 RS 

1 ways that might be damaged by a transportation 

2 security incident; and 

3 ‘‘(ii) in coordination with the Secretary of 

4 Energy, evaluate the security plans of each such 

5 nuclear facility for its adequacy to protect the 

6 facility from damage or disruption from a trans7 portation security incident originating in the 

8 navigable waterway, including threats posed by 

9 navigation, underwater access, and the introduc10 tion of harmful substances into water coolant 

11 systems. 

12 ‘‘(B) RECTIFICATION OF DEFICIENCIES.—The 

13 Secretary, in coordination with the Secretary of En14 ergy, shall take such steps as may be necessary or ap15 propriate to correct any deficiencies in security iden16 tified in the evaluations conducted under subpara17 graph (A). 

18 ‘‘(C) REPORT.—As soon as practicable after 

19 completion of the evaluation under subparagraph (A), 

20 the Secretary shall transmit a report, in both classi21 fied and redacted format, to the Senate Committee on 

22 Commerce, Science, and Transportation, the House of 

23 Representatives Committee on Transportation and 

24 Infrastructure, and the House of Representatives Se25 lect Committee on Homeland Security— 
59 

•S 2279 RS 

1 ‘‘(i) describing the results of the identifica2 tion and evaluation required by subparagraph 

3 (A); 

4 ‘‘(ii) describing the actions taken under sub5 paragraph (B); and 

6 ‘‘(iii) evaluating the technology utilized in 

7 the protection of nuclear facilities (including any 

8 such technology under development).’’. 

9 (b) VESSELS.—Section 70103(c)(3) of title 46, United 

10 States Code, is amended— 

11 (1) by striking ‘‘and’’ after the semicolon in sub12 paragraph (F); 

13 (2) by striking ‘‘facility.’’ in subparagraph (G) 

14 and inserting ‘‘facility; and’’; and 

15 (3) by adding at the end the following: 

16 ‘‘(H) establish a requirement, coordinated with 

17 the Department of Energy, for criminal background 

18 checks of all United States and foreign seamen em19 ployed on vessels transporting nuclear materials in 

20 the navigable waters of the United States.’’. 

21 SEC. 11. TRANSPORTATION WORKER BACKGROUND INVES22 TIGATION PROGRAMS. 

23 Within 120 days after the date of enactment of this 

24 Act, the Secretary of Homeland Security, after consultation 

25 with the Secretary of Transportation, shall transmit a re-
60 

•S 2279 RS 

1 port to the Senate Committee on Commerce, Science, and 

2 Transportation and the House of Representatives Com3 mittee on Transportation and Infrastructure— 

4 (1) making recommendations (including legisla5 tive recommendations, if appropriate or necessary) 

6 for harmonizing, combining, or coordinating require7 ments, procedures, and programs for conducting back8 ground checks under section 70105 of title 46, United 

9 States Code, section 5103a(c) of title 49, United 

10 States Code, section 44936 of title 49, United States 

11 Code, and other provisions of Federal law or regula12 tions requiring background checks for individuals en13 gaged in transportation or transportation-related ac14 tivities; 

15 (2) setting forth a detailed timeline for imple16 mentation of such harmonization, combination, or co17 ordination; 

18 (3) setting forth a plan with a detailed timeline 

19 for the implementation of the Transportation Worker 

20 Identification Credential in seaports; 

21 (4) making recommendations for a waiver and 

22 appeals process for issuing a transportation security 

23 card to an individual found otherwise ineligible for 

24 such a card under section 70105(c)(2) and (3) of title 

25 46, United States Code, along with recommendations 
61 

•S 2279 RS 

1 on the appropriate level of funding for such a process; 

2 and 

3 (5) making recommendations for how informa4 tion collected through the Transportation Worker 

5 Identification Credential program may be shared 

6 with port officials, terminal operators, and other offi7 cials responsible for maintaining access control while 

8 also protecting workers’ privacy. 

9 SEC. 12. REPORT ON CRUISE SHIP SECURITY. 

10 (a) IN GENERAL.—Not later than 120 days after the 

11 date of enactment of this Act, the Secretary of Homeland 

12 Security shall submit to the Senate Committee on Com13 merce, Science, and Transportation and the House of Rep14 resentatives Committee on Transportation and Infrastruc15 ture a report on the security of ships and facilities used 

16 in the cruise line industry. 

17 (b) CONTENT.—The report required by subsection (a) 

18 shall include an assessment of security measures employed 

19 by the cruise line industry, including the following: 

20 (1) An assessment of the security of cruise ships 

21 that originate at ports in foreign countries. 

22 (2) An assessment of the security of ports utilized 

23 for cruise ship docking. 

24 (3) The costs incurred by the cruise line industry 

25 to carry out the measures required by the Maritime 
62 

•S 2279 RS 

1 Transportation Security Act of 2002 (Public Law 

2 107–295; 116 Stat. 2064) and the amendments made 

3 by that Act. 

4 (4) The costs of employing canine units and 

5 hand-held explosive detection wands at ports, includ6 ing the costs of screening passengers and baggage with 

7 such methods. 

8 (5) An assessment of security measures taken by 

9 the Secretary of Homeland Security to increase the 

10 security of the cruise line industry and the costs in11 curred to carry out such security measures. 

12 (6) A description of the need for and the feasi13 bility of deploying explosive detection systems and ca14 nine units at ports used by cruise ships and an as15 sessment of the cost of such deployment. 

16 (7) A summary of the fees paid by passengers of 

17 cruise ships that are used for inspections and the fea18 sibility of creating a dedicated passenger vessel secu19 rity fund from such fees. 

20 (8) The recommendations of the Secretary, if 

21 any, for measures that should be carried out to im22 prove security of cruise ships that originate at ports 

23 in foreign countries. 

24 (9) The recommendations of the Secretary, if 

25 any, on the deployment of further measures to im-
63 

•S 2279 RS 

1 prove the security of cruise ships, including explosive 

2 detection systems, canine units, and the use of tech3 nology to improve baggage screening, and an assess4 ment of the cost of implementing such measures. 

5 SEC. 13. REPORT ON DESIGN OF MARITIME SECURITY 

6 GRANT PROGRAMS. 

7 Within 90 days after the date of enactment of this Act, 

8 the Secretary of Homeland Security shall transmit a report 

9 to the Senate Committee on Commerce, Science, and Trans10 portation and the House of Representatives Committee on 

11 Transportation and Infrastructure on the design of mari12 time security grant programs that includes recommenda13 tions on— 

14 (1) whether the grant programs should be discre15 tionary or formula based and why; 

16 (2) requirements for ensuring that Federal funds 

17 will not be substituted for grantee funds; 

18 (3) targeting requirements to ensure that funding 

19 is directed in a manner that reflects a national, risk20 based perspective on priority needs, the fiscal capac21 ity of recipients to fund the improvements without 

22 grant funds, and an explicit analysis of the impact 

23 of minimum funding to small ports that could affect 

24 funding available for the most strategic or economi25 cally important ports; and 
64 

•S 2279 RS 

1 (4) matching requirements to ensure that Federal 

2 funds provide an incentive to grantees for the invest3 ment of their own funds in the improvements fi4 nanced in part by Federal funds. 

Calendar No. 530 

108TH CONGRESS 

2D SESSION S. 2279 

[Report No. 108–274] 

A BILL 

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

MAY 20, 2004 

Reported with an amendment in the nature of a 

substitute