SEC. 12. SECURITY EXERCISES. 
(a) IN GENERAL.—The Secretary, in consultation 
with the Secretary of Transportation, shall establish a pro-
gram for conducting security exercises for covered trans-
portation for the purpose of assessing and improving the 
capabilities of entities described in subsection (b) to pre-
vent, prepare for, mitigate against, respond to, and re-
cover from acts of terrorism involving covered transpor-
tation. 
(b) COVERED ENTITIES.—Entities to be tested and 
evaluated under the program shall include— 
(1) Federal, State, and local agencies and tribal 
governments; 
(2) employees and managers of providers of 
covered transportation; 
(3) governmental and nongovernmental emer-
gency response providers and law enforcement per-
sonnel, including railroad and transit police; and 
(4) any other organization or entity that the 
Secretary determines appropriate. 
(c) REQUIREMENTS.—The Secretary, in consultation 
with the Secretary of Transportation, shall ensure that the 
program— 
(1) consolidates all existing security exercises 
for covered transportation administered by the De-
partment and the Department of Transportation; 
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(2) requires, on a periodic basis at the facilities 
of a provider of covered transportation, exercises to 
be conducted that are— 
(A) scaled and tailored to the needs of the 
facilities; 
(B) live, in the case of the most at-risk fa-
cilities to a terrorist attack; 
(C) as realistic as practicable and based on 
current risk assessments, including credible 
threats, vulnerabilities, and consequences; and 
(D) consistent with the National Incident 
Management System, the National Response 
Plan, the National Infrastructure Protection 
Plan, the National Preparedness Guidance, the 
National Preparedness Goal, and other such na-
tional initiatives; 
(3) provides that exercises described in para-
graph (2) will be— 
(A) evaluated against clear and consistent 
performance measures; 
(B) assessed to learn best practices, which 
shall be shared with appropriate Federal, State, 
local, and tribal officials, governmental and 
nongovernmental emergency response providers, 
law enforcement personnel, including railroad 
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and transit police, and appropriate stake-
holders; and 
(C) followed by remedial action in response 
to lessons learned; 
(4) includes exercises involving covered trans-
portation at or near the international land borders 
of the United States and in coordination with inter-
national stakeholders; 
(5) 
involves 
individuals 
in 
neighborhoods 
around the infrastructure of a provider of covered 
transportation; and 
(6) assists State and local governments and 
providers of covered transportation in designing, im-
plementing, and evaluating exercises that conform to 
the requirements of paragraph (2). 
(d) REMEDIAL ACTION MANAGEMENT PROGRAM.— 
The Secretary shall utilize the remedial action manage-
ment program of the Federal Emergency Management 
Agency to— 
(1) identify and analyze each exercise conducted 
under the program for lessons learned and best 
practices; 
(2) disseminate lessons learned and best prac-
tices to participants in the program; 
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(3) monitor the implementation of lessons 
learned and best practices by participants in the 
program; and 
(4) conduct remedial action tracking and long- 
term trend analysis. 
(e) NATIONAL TRAINING PROGRAM.—The Secretary 
shall ensure that the training program developed under 
subsection (a) is a component of the National Training 
Program established under section 648 of the Department 
of Homeland Security Appropriations Act of 2007 (6 
U.S.C. 748). 
SEC. 13. SECURITY RESEARCH AND DEVELOPMENT. 
(a) ESTABLISHMENT OF RESEARCH AND DEVELOP-
MENT PROGRAM.—The Secretary shall carry out a re-
search and development program for the purpose of im-
proving the security of covered transportation. 
(b) ELIGIBLE PROJECTS.—The research and develop-
ment program may include projects— 
(1) to reduce the vulnerability of passenger 
trains, stations, and equipment to explosives and 
hazardous chemical, biological, and radioactive sub-
stances including the development of technology to 
screen passengers in large numbers at peak com-
muting times with minimal interference and disrup-
tion; 
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(2) to test new emergency response and recov-
ery techniques and technologies; 
(3) to develop improved freight railroad tech-
nologies, including— 
(A) technologies for sealing or modifying 
railroad tank cars; 
(B) automatic inspection of railroad cars; 
(C) communication-based train controls; 
(D) signal system integrity at switches; 
(E) emergency response training, including 
training in a tunnel environment; 
(F) security and redundancy for critical 
communications, electrical power, computer, 
and train control systems; and 
(G) technologies for securing bridges and 
tunnels; 
(4) to test wayside detectors that can detect 
tampering; 
(5) to support enhanced security for the trans-
portation of hazardous materials by railroad; 
(6) to mitigate damages in the event of a 
cyberattack; and 
(7) to address other vulnerabilities and risks 
identified by the Secretary. 
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(c) COORDINATION WITH OTHER RESEARCH INITIA-
TIVES.—The Secretary shall— 
(1) ensure that the research and development 
program is consistent with the National Strategy for 
Rail and Public Transportation Security developed 
under section 3; and 
(2) to the greatest extent practicable, coordi-
nate the research and development activities of the 
Department with other ongoing research and devel-
opment security related initiatives, including re-
search being conducted by— 
(A) the National Academy of Sciences; 
(B) the Department of Transportation, in-
cluding university transportation centers and 
other institutes, centers, and simulators funded 
by the Department of Transportation; 
(C) the Technical Support Working Group; 
(D) other Federal departments and agen-
cies; and 
(E) other Federal and private research lab-
oratories, research entities, and universities and 
institutions of higher education including, His-
torically Black Colleges or Universities, and 
Hispanic Serving Institution or Tribal Univer-
sity, with the capability to conduct both prac-
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tical and theoretical research and technical sys-
tems analysis on subjects that include bridge, 
tunnel, blast, and infrastructure protection; 
(3) carry out any research and development 
project authorized by this section through a reim-
bursable agreement with the appropriate agency or 
entity official, if the agency or entity— 
(A) is currently sponsoring a research and 
development project in a similar area; or 
(B) has a unique facility or capability that 
would be useful in carrying out the project; 
(4) award grants, cooperative agreements, con-
tracts, other transactions, or reimbursable agree-
ments to the entities described in paragraph (c)(2) 
and shall adopt necessary procedures, including au-
dits, to ensure that awards made under this section 
are expended in accordance with the purposes of this 
title and the priorities and other criteria developed 
by the Secretary; and 
(5) make reasonable efforts to enter into memo-
randa of understanding, contracts, grants, coopera-
tive agreements, or other transactions with owners 
and operators of freight and intercity passenger rail 
and over-the-road bus facilities willing to contribute 
both physical space and other resources. 
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(d) PRIVACY AND CIVIL RIGHTS AND CIVIL LIB-
ERTIES ISSUES.— 
(1) CONSULTATION.—In carrying out research 
and development projects under this section, the 
Secretary shall consult with the Chief Privacy Offi-
cer of the Department and the Officer for Civil 
Rights and Civil Liberties of the Department as ap-
propriate and in accordance with section 222 of the 
Homeland Security Act of 2002 (6 U.S.C. 142). 
(2) PRIVACY
IMPACT
ASSESSMENTS.—In ac-
cordance with sections 222 and 705 of the Home-
land Security Act of 2002 (6 U.S.C. 142; 345), the 
Chief Privacy Officer shall conduct privacy impact 
assessments and the Officer for Civil Rights and 
Civil Liberties shall conduct reviews, as appropriate, 
for research and development initiatives developed 
under this section. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary to carry 
out this section— 
(1) $50,000,000 for fiscal year 2008; 
(2) $50,000,000 for fiscal year 2009; and 
(3) $50,000,000 for fiscal year 2010. 
(4) $50,000,000 for fiscal year 2011. 
Such sums shall remain available until expended. 
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SEC. 14. WHISTLEBLOWER PROTECTIONS. 
(a) IN GENERAL.—No covered individual may be dis-
charged, demoted, suspended, threatened, harassed, rep-
rimanded, investigated, or in any other manner discrimi-
nated against (including by a denial, suspension, or rev-
ocation of a security clearance or by any other security 
access determination) if such discrimination is due, in 
whole or in part, to any lawful act done, perceived to have 
been done, or intended to be done by the covered indi-
vidual— 
(1) to provide information, cause information to 
be provided, or otherwise assist in an investigation 
regarding any conduct which the covered individual 
reasonably believes constitutes a violation of any 
law, rule, or regulation relating to rail, public trans-
portation, or over-the-road-bus security, which the 
covered individual reasonably believes constitutes a 
threat to rail, public transportation, or over-the- 
road-bus security, or which the covered individual 
reasonably believes constitutes fraud, waste, or mis-
management of Government funds intended to be 
used for rail, public transportation, or over-the-road- 
bus security, if the information or assistance is pro-
vided to or the investigation is conducted by— 
(A) by a Federal, State, or local regulatory 
or law enforcement agency (including an office 
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of the Inspector General under the Inspector 
General Act of 1978 (5 U.S.C. app.; Public 
Law 95–452); 
(B) any Member of Congress, any com-
mittee of Congress, or the Government Ac-
countability Office; or 
(C) a person with supervisory authority 
over the covered individual (or such other per-
son who has the authority to investigate, dis-
cover, or terminate misconduct); 
(2) to file, cause to be filed, testify, participate 
in, or otherwise assist in a proceeding or action filed 
or about to be filed relating to an alleged violation 
of any law, rule, or regulation relating to national or 
homeland security; or 
(3) to refuse to violate or assist in the violation 
of any law, rule, or regulation relating to national or 
homeland security. 
(b) ENFORCEMENT ACTION.— 
(1) IN GENERAL.—A covered individual who al-
leges discharge or other discrimination by any per-
son in violation of subsection (a) may seek relief 
under subsection (c)— 
(A) for covered individuals who are em-
ployees of the Department or the Department 
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of Transportation, by filing a complaint with 
the Merit Systems Protection Board; 
(B) for contractors or subcontractors of 
the Department or Department of Transpor-
tation, by filing a complaint with their respec-
tive Inspector General; 
(C) for all other covered individuals, by fil-
ing a complaint with the Secretary of Labor; 
and 
(D) if the Secretary of Labor, Merit Sys-
tem Protection Board, or the respective Inspec-
tor General has not issued a final decision not 
later than 180 days after the filing of the com-
plaint, or in the event that a final order or deci-
sion is issued by the Secretary of Labor, Merit 
System Protection Board, or the respective In-
spector General, whether within the 180-day pe-
riod or thereafter, when, not later than 90 days 
after such an order or decision is issued, bring-
ing an original action at law or equity for de 
novo review in the appropriate district court of 
the United States, which shall have jurisdiction 
over such an action without regard to the 
amount in controversy, and which shall, at the 
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request of either party to such action, be tried 
by the court with a jury. 
(2) PROCEDURE.— 
(A) IN GENERAL.—An action under para-
graph (1)(A) shall be governed under the rules 
and procedures set forth in section 42121(b) of 
title 49, United States Code. 
(B) EXCEPTION.—Notification made under 
section 42121(b)(1) of title 49, United States 
Code, shall be made to the person named in the 
complaint and to the person’s employer. 
(C) BURDENS
OF
PROOF.—An action 
brought under paragraph (1)(B) shall be gov-
erned by the legal burdens of proof set forth in 
section 42121(b) of title 49, United States 
Code. 
(D) STATUTE OF LIMITATIONS.—An action 
under paragraph (1) shall be commenced not 
later than 1 year after the date on which the 
violation occurs. 
(c) REMEDIES.— 
(1) IN
GENERAL.—A covered individual pre-
vailing in any action under subsection (b)(1) shall be 
entitled to all relief necessary to make the covered 
individual whole. 
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(2) DAMAGES.—Relief for any action under 
paragraph (1) shall include— 
(A) reinstatement with the same seniority 
status that the covered individual would have 
had, but for the discrimination; 
(B) the amount of any backpay, with inter-
est; 
(C) compensation for any special damages 
sustained as a result of the discrimination, in-
cluding litigation costs, expert witness fees, and 
reasonable attorney fees; and 
(D) punitive damages in an amount not to 
exceed the greater of 3 times the amount of any 
compensatory damages awarded under this sec-
tion or $5,000,000. 
(d) USE OF STATE SECRETS PRIVILEGE.—If the 
Government, in a court of competent jurisdiction, asserts 
as a defense the privilege commonly referred to as the 
‘‘state secrets privilege’’ then— 
(1) the parties will move expeditiously to settle 
the case and the court shall grant the parties 60 
days by which to reach settlement of the pending 
matter to avoid disclosure of any sensitive govern-
ment information, including classified or sensitive in-
telligence information. The parties may certify to the 
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court that settlement cannot be reached before the 
end of the 60-day period; 
(2) if the parties cannot settle the matter and 
the parties continue to litigate the matter, the par-
ties and court shall apply special procedures in order 
to protect classified or secret information in a man-
ner consistent with sections 1 through 10 of the 
Classified Information and Procedures Act, and shall 
adhere to the Classified Information Procedures Act 
(18 U.S.C. App.; Public Law 96–456; 4 Stat. 2025); 
and 
(3) if, in any action brought under subsection 
(b)(1)(B), the Government asserts the state secrets 
privilege and the assertion of such privilege either is 
without merit or is asserted and causes undue delay 
or hardship to the plaintiff, or prevents the plaintiff 
from establishing a prima facie case in support of 
the plaintiff’s claim or from rebutting an affirmative 
defense, then the court shall enter judgment for the 
plaintiff and shall determine the relief to be granted. 
(e) CRIMINAL PENALTIES.— 
(1) IN GENERAL.—It shall be unlawful for any 
person employing a covered individual to commit an 
act prohibited by subsection (a). Any person who 
willfully violates this section by terminating or retali-
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ating against any covered individual who makes a 
claim under this section shall be fined under title 18, 
United States Code, imprisoned not more than 1 
year, or both. 
(2) REPORTING REQUIREMENT.— 
(A) IN GENERAL.—The Attorney General 
shall submit to the appropriate congressional 
committees an annual report on the enforce-
ment of paragraph (1). 
(B) CONTENTS.—Each such report shall— 
(i) identify each case in which formal 
charges under paragraph (1) were brought; 
(ii) describe the status or disposition 
of each such case; and 
(iii) in any actions under subsection 
(b)(1)(B) in which the covered individual 
was the prevailing party or the substan-
tially prevailing party, indicate whether or 
not any formal charges under paragraph 
(1) have been brought and, if not, the rea-
sons therefor. 
(f) NO PREEMPTION.—Nothing in this section pre-
empts or diminishes any other safeguards against dis-
crimination, demotion, discharge, suspension, threats, har-
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assment, reprimand, retaliation, or any other manner of 
discrimination provided by Federal or State law. 
(g) RIGHTS RETAINED BY COVERED INDIVIDUAL.— 
Nothing in this section shall be deemed to diminish the 
rights, privileges, or remedies of any covered individual 
under any Federal or State law or under any collective 
bargaining agreement. The rights and remedies in this 
section may not be waived by any agreement, policy, form, 
or condition of employment. 
(h) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) COVERED INDIVIDUAL.—The term ‘‘covered 
individual’’ means an employee of— 
(A) the Department; 
(B) the Department of Transportation; 
(C) a contractor or subcontractor; and 
(D) an employer within the meaning of 
section 701(b) of the Civil Rights Act of 1964 
(42 U.S.C. 2000e(b)) and who is a provider of 
covered transportation. 
(2) LAWFUL.—The term ‘‘lawful’’ means not 
specifically prohibited by law, except that, in the 
case of any information the disclosure of which is 
specifically prohibited by law or specifically required 
by Executive order to be kept secret in the interest 
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of national defense or the conduct of foreign affairs, 
any disclosure of such information to any Member of 
Congress, committee of Congress, or other recipient 
authorized to receive such information, shall be 
deemed lawful. 
(3) 
CONTRACTOR.—The 
term 
‘‘contractor’’ 
means a person who has entered into a contract with 
the Department, the Department of Transportation, 
or a provider of covered transportation. 
(4) 
EMPLOYEE.—The 
term 
‘‘employee’’ 
means— 
(A) with respect to an employer referred to 
in paragraph (1)(A) or (1)(B), an employee as 
defined by section 2105 of title 5, United States 
Code; and 
(B) with respect to an employer referred to 
in paragraph (1)(A) or (1)(B), any officer, 
partner, employee, or agent. 
(5) 
SUBCONTRACTOR.—The 
term 
‘‘subcon-
tractor’’— 
(A) means any person, other than the con-
tractor, who offers to furnish or furnishes any 
supplies, materials, equipment, or services of 
any kind under a contract with the Depart-
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ment, the Department of Transportation, or a 
provider of covered transportation; and 
(B) includes any person who offers to fur-
nish or furnishes general supplies to the Fed-
eral contractor or a higher tier subcontractor. 
(6) PERSON.—The term ‘‘person’’ means a cor-
poration, partnership, State entity, business associa-
tion of any kind, trust, joint-stock company, or indi-
vidual. 
SEC. 15. INCREASE IN SURFACE TRANSPORTATION SECU-
RITY INSPECTORS. 
(a) IN GENERAL.—The Secretary shall increase the 
total number of positions for full-time surface transpor-
tation security inspectors of the Department so that by 
December 31, 2010, the total number of such positions 
is at least 600. 
(b) QUALIFICATIONS.—Surface transportation secu-
rity inspectors hired by the Secretary shall have at least 
3 years experience in conducting inspections and investiga-
tions and engaging in testing security systems and any 
other qualifications that the Secretary determines appro-
priate. 
(c) ROLES AND RESPONSIBILITIES.—The Secretary, 
in consultation with the Secretary of Transportation, shall 
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develop a standard operating procedure clearly defining 
the relationship between— 
(1) surface transportation security inspectors of 
the Department; 
(2) safety and security inspectors of the De-
partment of Transportation; 
(3) State and local law enforcement officers; 
and 
(4) other law enforcement personnel, including 
railroad and transit police. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
out subsection (a) such sums as may be necessary. Such 
sums shall remain available until expended. 
SEC. 16. NATIONAL DOMESTIC PREPAREDNESS CONSOR-
TIUM. 
(a) IN GENERAL.—There is in the Department of 
Homeland Security a National Domestic Preparedness 
Consortium. 
(b) MEMBERS.—The National Domestic Prepared-
ness Consortium that identifies, develops, tests, and deliv-
ers training to State, local, and tribal emergency response 
providers, provides onsite and mobile training at the per-
formance and management and planning levels, and facili-
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tates the delivery of awareness level training by the train-
ing partners of the Department shall consist of— 
(1) the Center for Domestic Preparedness; 
(2) the National Energetic Materials Research 
and Testing Center, New Mexico Institute of Mining 
and Technology; 
(3) the National Center for Biomedical Re-
search and Training, Louisiana State University; 
(4) the National Emergency Response and Res-
cue Training Center, Texas A&M University; 
(5) the National Exercise, Test, and Training 
Center, Nevada Test Site; and 
(6) the Transportation Technology Center in 
Pueblo, Colorado. 
SEC. 17. AUTHORIZATION OF VISIBLE INTERMODAL PRO-
TECTION RESPONSE TEAMS. 
The Secretary, acting through the Administrator of 
the Transportation Security Administration, is authorized 
to develop Visible Intermodal Protection Response (re-
ferred to in this section as ‘‘VIPR’’) teams designed to 
augment security for any mode of transportation at any 
location within the United States. In forming a VIPR 
team, the Secretary— 
(1) may use any asset of the Department, in-
cluding Federal air marshals, surface transportation 
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security inspectors, canine detection teams, and ad-
vanced screening technology; 
(2) has the discretion to determine, consistent 
with ongoing security threats, when a VIPR should 
be deployed, as well as the duration of the deploy-
ment in coordination with local security and law en-
forcement officials; and 
(3) prior to deployments, shall consult with 
local security and law enforcement officials in the ju-
risdiction where the VIPR Team is planned to de-
ploy, to develop and agree upon the appropriate op-
erating protocols and in order to educate those offi-
cials regarding the mission of the VIPR teams. 
SEC. 18. NATIONAL TRANSPORTATION SECURITY CENTER 
OF EXCELLENCE. 
(a) ESTABLISHMENT.—The Secretary shall establish 
a National Transportation Security Center of Excellence 
at an institution of higher education to conduct research 
and education activities, and to develop or provide profes-
sional security training, including the training of rail and 
public transportation employees and rail and public trans-
portation-related professionals, with emphasis on utiliza-
tion of intelligent transportation systems, technologies, 
and architectures. 
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(b) CRITERIA.—The Secretary shall designate the 
Center according to the following selection criteria: 
(1) The demonstrated commitment of the insti-
tution to transportation security issues. 
(2) The use of and experience with partnerships 
with other institutions of higher education, Federal 
laboratories, or other nonprofit laboratories. 
(3) Capability to conduct both practical and 
theoretical research and technical systems analysis. 
(4) Utilization of intelligent transportation sys-
tem technologies and architectures. 
(5) Ability to develop professional security 
training programs. 
(6) Capability and willingness to conduct edu-
cation of transportation security professionals. 
(7) Such other criteria as the Secretary may 
designate. 
(c) CONSORTIUM.— 
(1) EXPERIENCE.—The Consortium shall in-
clude universities and institutions of higher edu-
cation that have existing transportation programs. 
(2) CERTAIN INCLUSIONS.—At least two of the 
consortium colleges and universities associated with 
the National Transportation Security Center of Ex-
cellence shall be an Historically Black College or 
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University, an Hispanic Serving Institution, or Trib-
al University, even if the primary institution is one 
of the aforementioned institutions of higher edu-
cation. 
(d) TRAINING.—If the consortium does include the 
National Transit Institute, the Consortium shall work 
with the National Transit Institute on training programs. 
(e) FUNDING.—The Secretary shall provide such 
funding as is necessary to the National Transportation Se-
curity Center of Excellence established under subsection 
(a) to carry out this section. 
SEC. 19. TSA PERSONNEL LIMITATIONS. 
Any statutory limitation on the number of employees 
in the Transportation Security Administration does not 
apply to employees carrying out this Act. 
SEC. 20. HOMELAND SECURITY GRANTS. 
Notwithstanding any provision of this Act, all grants 
distributed for security-related purposes pursuant to this 
Act, shall be administered on the basis of risk by the Sec-
retary as the lead Federal official on transportation secu-
rity. 
SEC. 21. THREAT ASSESSMENT SCREENING. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary shall implement a threat 
assessment screening program, including name-based 
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checks against terrorist watch lists and immigration sta-
tus check, for all employees of covered transportation, that 
is the same as the threat assessment screening program 
required for facility employees and longshoremen by the 
Commandant of the Coast Guard under Coast Guard No-
tice USCG–2006–24189 (71 Fed. Reg. 25066 (Friday, 
April 28, 2006)). 
SEC. 22. BACKGROUND CHECKS FOR COVERED INDIVID-
UALS. 
(a) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) BACKGROUND CHECKS.—The term ‘‘back-
ground check’’ means a check of the following: 
(A) Relevant criminal history databases. 
(B) In the case of an alien (as defined in 
the Immigration and Nationality Act (8 U.S.C. 
1101(a)(3)), the relevant databases to deter-
mine the status of the alien under the immigra-
tion laws of the United States. 
(2) COVERED
INDIVIDUALS.—The term ‘‘cov-
ered individual’’ means an employee of— 
(A) an employer, within the meaning of 
section 701(b) of the Civil Rights Act of 1964 
(42 U.S.C. 2000e(b)), who is a provider of cov-
ered transportation; or 
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(B) a contractor or subcontractor of such 
an employer. 
(b) REDRESS PROCESS.—If a provider of covered 
transportation conducts background checks in order to 
satisfy any rules, regulations, directives, or other guidance 
issued by the Secretary to protect covered transportation 
from the threat of terrorism, the provider of covered trans-
portation shall provide an adequate redress process. 
(c) STANDARDS FOR REDRESS PROCESS.— 
(1) IN GENERAL.—The Secretary shall ensure 
that each provider of covered transportation imple-
ments a redress process in accordance with sub-
section (b) for covered individuals adversely im-
pacted by a background check described in sub-
section (b). 
(2) STANDARDS.—The redress process shall be 
modeled after the appeals and waiver process estab-
lished for hazmat drivers and transportation workers 
at ports, as required by section 1515 of title 49, 
Code of Federal Regulations. 
(3) COMPONENTS.—The redress process shall 
include the following: 
(A) A waiver process that will allow a cov-
ered individual to demonstrate, through reha-
bilitation, or facts surrounding the conviction or 
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other mitigating factors, that the individual is 
not a security risk. 
(B) An appeal process during which a cov-
ered individual will have an opportunity to dem-
onstrate that the individual does not have a dis-
qualifying conviction either by— 
(i) correcting outdated underlying 
court records; 
(ii) proving mistaken identity; or 
(iii) establishing that the conviction 
cannot serve as the basis for an adverse 
employment decision in accordance with 
the limitations contained in subsection (d). 
(C) A proceeding providing an independent 
review. 
(D) A process to ensure compliance with 
the requirements of this section. 
(4) 
PROCEEDINGS
PROVIDING
AN
INDE-
PENDENT
REVIEW.—A covered individual who re-
quests a proceeding under paragraph (3)(C) shall 
have the right to have waiver and appeal decisions 
heard by an independent decisionmaker with the 
ability to order reinstatement expeditiously or pro-
vide other remedy. 
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(5) PREVIOUS BACKGROUND CHECKS.—A cov-
ered individual subjected to and adversely affected 
by a background check conducted by a provider of 
covered transportation (or a contractor or subcon-
tractor of such a provider), in the period beginning 
on June 23, 2006, and ending on the date of enact-
ment of this Act, to satisfy any rules, regulations, 
directives, or other guidance issued by the Secretary 
to protect covered transportation from the threat of 
terrorism shall have an immediate right to a pro-
ceeding with an independent decisionmaker to deter-
mine if the adverse action was in compliance with 
this section and shall have a right to immediate rein-
statement or other remedy if the background check 
fails to comply with this section. 
(d) LIMITATIONS.— 
(1) IN GENERAL.—Subject to paragraph (2), 
any rule, regulation, directive, or other guidance 
issued by the Secretary regarding background checks 
of covered individuals shall prohibit an employer 
from making an adverse employment decision, in-
cluding removal or suspension, with respect to a cov-
ered individual based on— 
(A) a felony conviction that occurred 7 or 
more years ago; 
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(B) a conviction of any offense for which 
the individual was released from incarceration 5 
or more years ago; or 
(C) any felony not listed in section 
1572.103(b) of title 49, Code of Federal Regu-
lations. 
(2) EXCEPTIONS.—The limitations contained in 
paragraph (1) shall not apply to a covered individual 
who has been convicted of any of the following: 
(A) Treason (or conspiracy to commit trea-
son). 
(B) Espionage (or conspiracy to commit 
espionage). 
(C) Sedition (or conspiracy to commit sedi-
tion). 
(D) Any crime listed in section 2331 of 
title 18, United States Code (or conspiracy to 
commit such a crime). 
(e) STATUTORY CONSTRUCTION.—Nothing in this 
section shall be construed to affect the process for review 
established under section 70105(c) of title 46, United 
States Code, including regulations issued pursuant to such 
section. 
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SEC. 23. PENALTIES. 
(a) REGULATIONS
AND
ORDERS
OF
THE
SEC-
RETARY.—Section 114 of title 49, United States Code, is 
amended by adding at the end the following: 
‘‘(u) GENERAL CIVIL PENALTIES
AND ENFORCE-
MENT
OF REGULATIONS
AND ORDERS
OF
THE SEC-
RETARY OF HOMELAND SECURITY.— 
‘‘(1) APPLICATION.—This subsection applies to 
the enforcement of regulations prescribed, and or-
ders issued, by the Secretary of Homeland Security 
under a provision of chapter 701 of title 46 and this 
title (other than chapter 449) (in this subsection re-
ferred to as an ‘applicable provision of this title’). 
Penalties for violation of regulations prescribed, and 
orders issued, by the Secretary of Homeland Secu-
rity under a provision of chapter 449 are provided 
under chapter 463. 
‘‘(2) GENERAL CIVIL PENALTIES.— 
‘‘(A) MAXIMUM CIVIL PENALTIES.—A per-
son is liable to the United States Government 
for a civil penalty of not more than $10,000 for 
a violation of a regulation prescribed, or order 
issued, by the Secretary of Homeland Security 
under an applicable provision of this title. 
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‘‘(B) SEPARATE VIOLATIONS.—A separate 
violation occurs under this paragraph for each 
day the violation continues. 
‘‘(3) ADMINISTRATIVE
IMPOSITION
OF
CIVIL 
PENALTIES.— 
‘‘(A) IN
GENERAL.—The Secretary of 
Homeland Security may impose a civil penalty 
for a violation of a regulation prescribed, or 
order issued, under an applicable provision of 
this title. The Secretary of Homeland Security 
shall give written notice of the finding of a vio-
lation and the penalty. 
‘‘(B) CIVIL
ACTIONS
TO
COLLECT
PEN-
ALTIES.—In a civil action to collect a civil pen-
alty imposed by the Secretary under this para-
graph, the issues of liability and the amount of 
the penalty may not be reexamined. 
‘‘(C) EXCLUSIVE
JURISDICTION
OF
DIS-
TRICT
COURTS.—Notwithstanding 
subpara-
graph (A) of this paragraph, the district courts 
of the United States have exclusive jurisdiction 
of a civil action involving a penalty that the 
Secretary initiates if— 
‘‘(i) the amount in controversy is 
more than— 
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‘‘(I) $400,000 if the violation 
was committed by a person other than 
an individual or small business con-
cern; or 
‘‘(II) $50,000 if the violation was 
committed by an individual or small 
business concern; 
‘‘(ii) the action is in rem or another 
action in rem based on the same violation 
has been brought; or 
‘‘(iii) another action has been brought 
for an injunction based on the same viola-
tion. 
‘‘(D) MAXIMUM CIVIL PENALTIES IMPOSED 
BY THE SECRETARY.—The maximum civil pen-
alty the Secretary may impose under this para-
graph is— 
‘‘(i) $400,000 if the violation was 
committed by a person other than an indi-
vidual or small business concern; or 
‘‘(ii) $50,000 if the violation was com-
mitted by an individual or small business 
concern. 
‘‘(E) NOTICE AND OPPORTUNITY TO RE-
QUEST HEARING.—Before imposing a penalty 
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under this section the Secretary shall provide to 
the person against whom the penalty is to be 
imposed— 
‘‘(i) written notice of the proposed 
penalty; and 
‘‘(ii) the opportunity to request, not 
later than 30 days after the date on which 
the person receives the notice, a hearing on 
the proposed penalty. 
‘‘(4) COMPROMISE AND SETOFF.— 
‘‘(A) COMPROMISE.—The Secretary may 
compromise the amount of a civil penalty im-
posed under this subsection. 
‘‘(B) SETOFF.—The Government may de-
duct the amount of a civil penalty imposed or 
compromised 
under 
this 
subsection 
from 
amounts it owes the person liable for the pen-
alty. 
‘‘(5) INVESTIGATIONS AND PROCEEDINGS.—The 
provisions set forth in chapter 461 shall be applica-
ble to investigations and proceedings brought under 
this subsection to the same extent that they are ap-
plicable to investigations and proceedings brought 
with respect to aviation security duties designated to 
be carried out by the Secretary. 
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‘‘(6) NONAPPLICATION.— 
‘‘(A) PERSONS
SUBJECT
TO
PENALTIES 
DETERMINED
BY
THE
SECRETARY
OF
DE-
FENSE.—Paragraphs (1) through (4) of this 
subsection do not apply to the following per-
sons, who shall be subject to penalties as deter-
mined by the Secretary of Defense or the Sec-
retary’s designee: 
‘‘(i) The transportation of personnel 
or shipments of materials by contractors 
where the Department of Defense has as-
sumed control and responsibility. 
‘‘(ii) A member of the Armed Forces 
of the United States when performing offi-
cial duties. 
‘‘(iii) A civilian employee of the De-
partment of Defense when performing offi-
cial duties. 
‘‘(B) POSTAL SERVICE; DEPARTMENT OF 
DEFENSE.—In this subsection, the term ‘per-
son’ does not include— 
‘‘(i) the United States Postal Service; 
or 
‘‘(ii) the Department of Defense. 
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‘‘(7) SMALL
BUSINESS
CONCERN
DEFINED.— 
The term ‘small business concern’ has the meaning 
given that term in section 3 of the Small Business 
Act (15 U.S.C. 632).’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
46301(a)(4) of title 49, United States Code, is amended 
by striking ‘‘or another requirement under this title ad-
ministered by the Under Secretary of Transportation for 
Security’’. 
Æ 
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