HR 4954 PCS 
‘‘(B) the determination of the Secretary 
whether or not to expand the use of third party 
entities to conduct validations of C–TPAT par-
ticipants. 
‘‘SEC. 1819. REVALIDATION. 
‘‘The Secretary shall establish a process for revali-
dating C–TPAT participants under this subtitle. Such re-
validation shall occur not less frequently than once during 
every 3-year period following the initial validation. 
‘‘SEC. 1820. NON-CONTAINERIZED CARGO. 
‘‘The Secretary may consider the potential for par-
ticipation in C–TPAT by importers of non-containerized 
cargoes that otherwise meet the requirements under this 
subtitle. 
‘‘SEC. 1821. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There 
are 
authorized 
to 
be 
appropriated 
$75,000,000 for each of the fiscal years 2007 through 
2012 to carry out this subtitle. 
‘‘Subtitle C—Miscellaneous 
Provisions 
‘‘SEC. 1831. RESEARCH, DEVELOPMENT, TEST, AND EVALUA-
TION EFFORTS IN FURTHERANCE OF MARI-
TIME AND CARGO SECURITY. 
‘‘(a) IN GENERAL.—The Secretary shall— 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00074
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
‘‘(1) direct research, development, test, and 
evaluation efforts in furtherance of maritime and 
cargo security; 
‘‘(2) encourage the ingenuity of the private sec-
tor in developing and testing technologies and proc-
ess innovations in furtherance of these objectives; 
and 
‘‘(3) evaluate such technologies. 
‘‘(b) COORDINATION.—The Secretary, in coordina-
tion with the Undersecretary for Science and Technology, 
the Director of the Domestic Nuclear Detection Office of 
the Department, and the heads of other appropriate of-
fices or entities of the Department, shall ensure that— 
‘‘(1) research, development, test, and evaluation 
efforts funded by the Department in furtherance of 
maritime and cargo security are coordinated to avoid 
duplication of efforts; and 
‘‘(2) the results of such efforts are shared 
throughout the Department and other Federal, 
State, and local agencies, as appropriate. 
‘‘SEC. 1832. GRANTS UNDER OPERATION SAFE COMMERCE. 
‘‘(a) IN GENERAL.—The Secretary shall provide 
grants, as part of Operation Safe Commerce, to— 
‘‘(1) integrate nonintrusive imaging inspection 
and nuclear and radiological detection systems with 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00075
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
automatic identification methods for containers, ves-
sels, and vehicles; 
‘‘(2) test physical access control protocols and 
technologies to include continuous tracking devices 
that provide real-time monitoring and reporting; 
‘‘(3) create a data sharing network capable of 
transmitting data required by entities participating 
in the international supply chain from every inter-
modal transfer point to the National Targeting Cen-
ter of the Department; and 
‘‘(4) otherwise further maritime and cargo secu-
rity, as determined by the Secretary. 
‘‘(b) SUPPLY CHAIN SECURITY FOR SPECIAL CON-
TAINER AND NONCONTAINERIZED CARGO.—In providing 
grants under subsection (a), the Secretary shall establish 
demonstration projects that further the security of the 
international supply chain, including refrigerated con-
tainers, and noncontainerized cargo, including roll-on/roll- 
off, break-bulk, liquid, and dry bulk cargo, through real- 
time, continuous tracking technology for special or high- 
risk container cargo that poses unusual potential for 
human or environmental harm. 
‘‘(c) COMPETITIVE SELECTION PROCESS.—The Sec-
retary shall select recipients of grants under subsection 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00076
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
(a) through a competitive process on the basis of the fol-
lowing criteria: 
‘‘(1) The extent to which the applicant can 
demonstrate that personnel, laboratory, and organi-
zational resources will be available to the applicant 
to carry out the activities authorized under this sec-
tion. 
‘‘(2) The applicant’s capability to provide lead-
ership in making national and regional contributions 
to the solution of maritime and cargo security 
issues. 
‘‘(3) The extent to which the applicant’s pro-
grams, projects, and activities under the grant will 
address highest risk priorities as determined by the 
Secretary. 
‘‘(4) The extent to which the applicant has a 
strategic plan for carrying out the programs, 
projects, and activities under the grant. 
‘‘(5) Any other criteria the Secretary deter-
mines to be appropriate. 
‘‘(d) ADMINISTRATIVE PROVISIONS.— 
‘‘(1) PROHIBITION
ON
DUPLICATION
OF
EF-
FORT.—Before providing any grant under subsection 
(a), the Secretary shall coordinate with other Fed-
eral departments and agencies to ensure the grant 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00077
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
will not duplicate work already being carried out 
with Federal funding. 
‘‘(2) ACCOUNTING, REPORTING, AND
REVIEW 
PROCEDURES.—The Secretary shall establish ac-
counting, reporting, and review procedures to ensure 
that— 
‘‘(A) amounts made available under a 
grant provided under subsection (a)— 
‘‘(i) are used for the purpose for 
which such amounts were made available; 
and 
‘‘(ii) are properly accounted for; and 
‘‘(B) amounts not used for such purpose 
and amounts not expended are recovered. 
‘‘(3) RECORDKEEPING.—The recipient of a 
grant under subsection (a) shall keep all records re-
lated to expenditures and obligations of amounts 
provided under the grant and make such records 
available upon request to the Secretary for audit and 
examination. 
‘‘(4) REVIEW.—The Secretary shall annually 
review the programs, projects, and activities carried 
out using amounts made available under grants pro-
vided under subsection (a) to ensure that obligations 
and expenditures of such amounts are consistent 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00078
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
with the purposes for which such amounts are made 
available. 
‘‘(e) ANNUAL REPORT.—Not later than March 1 of 
each year, the Secretary shall submit to the appropriate 
congressional committees a report detailing the results of 
Operation Safe Commerce. 
‘‘(f) DEFINITION.—In this section, the term ‘Oper-
ation Safe Commerce’ means the research, development, 
test, and evaluation grant program that brings together 
private sector shareholders, port officials, and Federal, 
State, and local representatives to analyze existing secu-
rity procedures for cargo and develop new security proto-
cols that have the potential to increase the security of 
cargo shipments by monitoring the movement and integ-
rity of cargo through the international supply chain. 
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
there are authorized to be appropriated $25,000,000 
for each of fiscal years 2007 through 2012 to carry 
out this section. 
‘‘(2) EFFECTIVE
DATE.—Paragraph (1) shall 
be effective beginning on the date on which the Sec-
retary submits to the appropriate congressional com-
mittees a report on the implementation and results 
of grants provided under Operation Safe Commerce 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00079
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
before the date of the enactment of the Security and 
Accountability For Every Port Act. 
‘‘SEC. 1833. DEFINITIONS. 
‘‘In this title, the following definitions apply: 
‘‘(1) AUTOMATED
TARGETING
SYSTEM.—The 
term ‘Automated Targeting System’ means the 
rules-based system incorporating intelligence mate-
rial and import transaction history, established by 
U.S. Customs and Border Protection to target high 
risk shipments of cargo. 
‘‘(2) EXAMINATION.—The term ‘examination’ 
means a physical inspection or the imaging and radi-
ation screening of a conveyance using non-intrusive 
inspection (NII) technology, for the presence of con-
traband. 
‘‘(3) 
INSPECTION.—The 
term 
‘inspection’ 
means the comprehensive process used by U.S. Cus-
toms and Border Protection for assessing goods en-
tering the United States to appraise them for duty 
purposes, to detect the presence of restricted or pro-
hibited items, and to ensure compliance with all ap-
plicable laws. This process may include screening, 
conducting an examination, or conducting a search. 
‘‘(4) INTERNATIONAL
SUPPLY
CHAIN.—The 
term ‘international supply chain’ means the end-to- 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00080
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
end process for shipping goods from a point of ori-
gin overseas to and from the United States. 
‘‘(5) NUCLEAR AND RADIOLOGICAL DETECTION 
SYSTEM.—The term ‘nuclear and radiological detec-
tion system’ means any technology that is capable of 
detecting or identifying nuclear and radiological ma-
terial or explosive devices. 
‘‘(6) SCREENING.—The term ‘screening’ means 
a visual or automated review of information about 
goods, including manifest or entry documentation 
accompanying a shipment being imported into the 
United States, to determine or assess the threat of 
such cargo. 
‘‘(7) SEARCH.—The term ‘search’ means an in-
trusive examination in which a container is opened 
and its contents are de-vanned and visually in-
spected for the presence of misdeclared, restricted, 
or prohibited items.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
in section 1(b) of the Homeland Security Act of 2002 (116 
Stat. 2135) is amended by adding at the end the following: 
‘‘TITLE XVIII—SECURITY OF THE INTERNATIONAL SUPPLY 
CHAIN 
‘‘Subtitle A—General Provisions 
‘‘Sec. 1801. Strategic plan to enhance the security of the international supply 
chain. 
‘‘Sec. 1802. Transmission of additional data elements for improved high risk 
targeting. 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00081
Fmt 6652
Sfmt 6211
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
‘‘Sec. 1803. Plan to improve the Automated Targeting System. 
‘‘Sec. 1804. Container standards and verification procedures. 
‘‘Sec. 1805. Container Security Initiative (CSI). 
‘‘Sec. 1806. Information sharing relating to supply chain security cooperation. 
‘‘Subtitle B—Customs-Trade Partnership Against Terrorism (C–TPAT) 
‘‘Sec. 1811. Establishment. 
‘‘Sec. 1812. Eligible entities. 
‘‘Sec. 1813. Minimum requirements. 
‘‘Sec. 1814. Tier one participants. 
‘‘Sec. 1815. Tier two participants. 
‘‘Sec. 1816. Tier three participants. 
‘‘Sec. 1817. Consequences for lack of compliance. 
‘‘Sec. 1818. Validations by third party entities. 
‘‘Sec. 1819. Revalidation. 
‘‘Sec. 1820. Non-containerized cargo. 
‘‘Sec. 1821. Authorization of appropriations. 
‘‘Subtitle C—Miscellaneous Provisions 
‘‘Sec. 1831. Research, development, test, and evaluation efforts in furtherance 
of maritime and cargo security. 
‘‘Sec. 1832. Grants under Operation Safe Commerce. 
‘‘Sec. 1833. Definitions.’’. 
(c) EFFECTIVE DATES.—The Secretary of Homeland 
Security shall— 
(1) submit to the appropriate congressional 
committees the report required by section 1801(e)(1) 
of the Homeland Security Act of 2002, as added by 
subsection (a), not later than 180 days after the 
date of enactment of this Act; 
(2) 
promulgate 
regulations 
under 
section 
1802(b) of the Homeland Security Act of 2002, as 
added by subsection (a), not later than one year 
after the date of the enactment of this Act; 
(3) develop and implement the plan to improve 
the Automated Targeting System under section 
1803(a) of the Homeland Security Act of 2002, as 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00082
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
added by subsection (a), not later than 180 days 
after the date of the enactment of this Act; 
(4) develop the standards and verification pro-
cedures described in section 1804(a)(1) of the 
Homeland Security Act of 2002, as added by sub-
section (a), not later than 180 days after the date 
of the enactment of this Act; 
(5) begin exercising authority to issue a ‘‘do not 
load’’ order to each port designated under CSI pur-
suant to section 1805(e) of the Homeland Security 
Act of 2002, as added by subsection (a), not later 
than 180 days after the date of the enactment of 
this Act; 
(6) develop the secure electronic data inter-
change system under section 1806(b) of the Home-
land Security Act of 2002, as added by subsection 
(a), not later than one year after the date of the en-
actment of this Act; 
(7) update guidelines for certifying a C–TPAT 
participant’s security measures and supply chain se-
curity practices under section 1814(b) of the Home-
land Security Act of 2002, as added by subsection 
(a), not later than 180 days after the date of the en-
actment of this Act; 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00083
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
(8) develop a schedule and update guidelines for 
validating a C–TPAT participant’s security meas-
ures and supply chain security practices under sec-
tion 1815 of the Homeland Security Act of 2002, as 
added by subsection (a), not later than 180 days 
after the date of enactment of this Act; 
(9) provide appropriate benefits described in 
subsection (d) of section 1816 of the Homeland Se-
curity Act of 2002, as added by subsection (a), to 
C–TPAT participants under section 1816 of such 
Act beginning not later than two years after the 
date of the enactment of this Act; and 
(10) carry out the pilot program described in 
section 1818(f) of the Homeland Security Act of 
2002, as added by subsection (a), beginning not 
later than one year after the date of the enactment 
of this Act for a duration of not less than a one-year 
period. 
SEC. 202. NEXT GENERATION SUPPLY CHAIN SECURITY 
TECHNOLOGIES. 
(a) EVALUATION OF EMERGING TECHNOLOGIES.— 
While maintaining the current layered, risk-based ap-
proach to screening, scanning, and inspecting cargo at for-
eign ports bound for the United States in accordance with 
existing statutory provisions, the Secretary of Homeland 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00084
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
Security shall evaluate the development of nuclear and ra-
diological detection systems and other inspection tech-
nologies for use at foreign seaports to increase the volume 
of containers scanned prior to loading on vessels bound 
for the United States. In carrying out this section, the 
Secretary’s evaluation shall include an analysis of battery 
powered portable neutron and gamma-ray detection de-
vices that can be inexpensively mass produced. 
(b) EMERGING TECHNOLOGY.—Not later than one 
year after the date of the enactment of this Act, the Sec-
retary shall, having evaluated emerging technologies under 
subsection (a), determine if more capable, commercially 
available technology exists, and whether such technology— 
(1) has a sufficiently low false alarm rate for 
use in the supply chain; 
(2) is capable of being deployed and operated at 
ports overseas; 
(3) is capable of integrating, where necessary, 
with existing systems; 
(4) does not significantly impact trade capacity 
and flow of cargo at foreign or United States ports; 
and 
(5) provides an automated notification of ques-
tionable or high-risk cargo as a trigger for further 
inspection by appropriately trained personnel. 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00085
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
(c) CONTINGENT IMPLEMENTATION.—If the Sec-
retary determines the available technology meets the cri-
teria outlined in subsection (b), the Secretary, in coopera-
tion with the Secretary of State, shall within 180 days 
of such determination, seek to secure the cooperation of 
foreign governments to initiate and maximize the use of 
such technology at foreign ports to scan all cargo possible. 
(d) INTERNATIONAL COOPERATION.—If the Sec-
retary determines that a proposed technology meets the 
requirements of subsection (b), but cannot be implemented 
as a result of a foreign government’s refusal to cooperate 
in the phased deployment, the Secretary may refuse to ac-
cept containerized cargo from that port. 
(e) REPORT.—The Secretary shall submit to the ap-
propriate congressional committees on an annual basis a 
report on the evaluation performed under subsections (a) 
and (b), the status of any implementation initiated in ac-
cordance with subsection (c), and a detailed assessment 
of the level of cooperation of foreign governments, as well 
as any actions taken by the Secretary under subsection 
(d). 
(f) DEFINITION.—In this section, the term ‘‘nuclear 
and radiological detection system’’ means any technology 
that is capable of detecting or identifying nuclear and ra-
diological material or explosive devices. 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00086
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
SEC. 203. INTERNATIONAL TRADE DATA SYSTEM. 
(a) ESTABLISHMENT.—The President shall establish 
and implement the International Trade Data System, a 
single, uniform data system for the electronic collection, 
dissemination, and sharing of import and export informa-
tion, to increase the efficiency of data submission and the 
security of such data related to border security, trade, and 
public health and safety of international cargoes. 
(b) PRIVATE SECTOR CONSULTATION.—The Presi-
dent shall consult with private sector stakeholders in de-
veloping uniform data submission requirements, proce-
dures, and schedules under the system established pursu-
ant to subsection (a). 
(c) REPORT.—Not later than 120 days after the date 
of the enactment of this Act, the President shall transmit 
to the appropriate congressional committees a report on 
the schedule for full implementation of the system estab-
lished pursuant to subsection (a). 
(d) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to prevent any Federal department 
or agency from collecting import and export information 
under any other provision of law. 
SEC. 204. FOREIGN PORT ASSESSMENTS. 
Section 70108 of title 46, United States Code, is 
amended by adding at the end the following: 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00087
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
‘‘(d) PERIODIC REASSESSMENT.—The Secretary, act-
ing through the Commandant of the Coast Guard, shall 
reassess the effectiveness of antiterrorism measures main-
tained at ports as described under subsection (a) and of 
procedures described in subsection (b) not less than every 
3 years.’’. 
SEC. 205. PILOT PROGRAM TO IMPROVE THE SECURITY OF 
EMPTY CONTAINERS. 
(a) IN GENERAL.—The Secretary of Homeland Secu-
rity shall conduct a one-year pilot program to evaluate and 
improve the security of empty containers at United States 
seaports to ensure the safe and secure delivery of cargo 
and to prevent potential acts of terrorism involving such 
containers. The pilot program shall include the use of vis-
ual searches of empty containers at United States sea-
ports. 
(b) REPORT.—Not later than 90 days after the com-
pletion of the pilot program under paragraph (1), the Sec-
retary shall prepare and submit to the appropriate con-
gressional committees a report that contains— 
(1) the results of pilot program; and 
(2) the determination of the Secretary whether 
or not to expand the pilot program. 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00088
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
SEC. 206. STUDY AND REPORT ON ADVANCED IMAGERY 
PILOT PROGRAMS. 
(a) STUDY.— 
(1) IN GENERAL.—The Secretary of Homeland 
Security, in consultation with the Commissioner of 
U.S. Customs and Border Protection, shall conduct 
a study of the merits of current container inspection 
pilot programs which include nuclear or radiological 
detection, non-intrusive imagery, and density scan-
ning capabilities. 
(2) 
REQUIREMENTS.—The 
study 
required 
under paragraph (1) shall include, at a minimum— 
(A) an evaluation of the cost, personnel, 
and infrastructure required to operate the pilot 
programs, as well as the cost, personnel, and 
infrastructure required to move the pilot pro-
grams into full-scale deployment to screen all 
cargo imported from foreign ports; 
(B) an evaluation of the cost, personnel, 
and infrastructure required by U.S. Customs 
and Border Protection to validate the data gen-
erated from the pilot programs; 
(C) a summary of best practices and tech-
nological advances of the pilot programs that 
could be integrated into the Container Security 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00089
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
Initiative and other container security pro-
grams; and 
(D) an assessment of the impact of tech-
nology or processes utilized in the pilot pro-
grams on improving cargo operations and secu-
rity. 
(b) REPORT.—Not later than 60 days after the date 
of the enactment of this Act, the Secretary shall submit 
to the appropriate congressional committees a report that 
contains— 
(1) the results of the study required under sub-
section (a); and 
(2) recommendations to improve container secu-
rity programs within the Department of Homeland 
Security. 
SEC. 207. REPORT ON NATIONAL TARGETING CENTER. 
(a) STUDY.—The Secretary of Homeland Security 
shall conduct a study to assess the activities of U.S. Cus-
toms and Border Protection’s National Targeting Center 
(NTC). 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary shall submit 
to the appropriate congressional committees a report that 
contains— 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00090
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
(1) the results of the study conducted under 
subsection (a); and 
(2) recommendations to improve and strengthen 
the activities of NTC. 
SEC. 208. INTEGRATED CONTAINER INSPECTION SYSTEM 
PILOT PROJECT. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Homeland Security shall 
conduct a pilot project at an overseas port similar to the 
Integrated Container Inspection System being tested at 
the port in Hong Kong. 
TITLE 
III—DIRECTORATE 
FOR 
POLICY, 
PLANNING, 
AND 
INTERNATIONAL AFFAIRS 
SEC. 301. ESTABLISHMENT OF DIRECTORATE. 
(a) ESTABLISHMENT.—The Homeland Security Act 
of 2002 (6 U.S.C. 101 et seq.) is amended— 
(1) by redesignating title VI as title XIX, and 
moving such title so as to appear after title XVIII, 
as added by section 201; 
(2) by striking the heading for such title and 
inserting the following: 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00091
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
‘‘TITLE XIX—MISCELLANEOUS 
PROVISIONS’’. 
(3) by redesignating section 601 as section 
1901; and 
(4) by inserting after title V the following new 
title: 
‘‘TITLE VI—POLICY, PLANNING, 
AND INTERNATIONAL AFFAIRS 
‘‘SEC. 601. DIRECTORATE FOR POLICY, PLANNING, AND 
INTERNATIONAL AFFAIRS. 
‘‘(a) ESTABLISHMENT.—There shall be in the De-
partment a Directorate for Policy, Planning, and Inter-
national Affairs. 
‘‘(b) UNDER SECRETARY FOR POLICY.— 
‘‘(1) IN
GENERAL.—The head of the Direc-
torate shall be the Under Secretary for Policy, who 
shall be appointed by the President. 
‘‘(2) QUALIFICATIONS.—No individual shall be 
appointed Under Secretary for Policy under para-
graph (1) unless the individual has, by education 
and experience, demonstrated knowledge, ability, 
and skill in the fields of policy and strategic plan-
ning. 
‘‘(c) RESPONSIBILITIES OF UNDER SECRETARY.— 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00092
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
‘‘(1) POLICY
RESPONSIBILITIES.—Subject to 
the direction and control of the Secretary, the policy 
responsibilities of the Under Secretary for Policy 
shall be as follows: 
‘‘(A) To serve as the principal policy advi-
sor to the Secretary. 
‘‘(B) To provide overall direction and su-
pervision of policy development for the pro-
grams, offices, and activities of the Depart-
ment. 
‘‘(C) To establish and implement a formal 
policymaking process for the Department. 
‘‘(D) To analyze, evaluate, and review the 
completed, ongoing, and proposed programs of 
the Department to ensure they are compatible 
with the statutory and regulatory responsibil-
ities of the Department and with the Sec-
retary’s priorities, strategic plans, and policies. 
‘‘(E) To ensure that the budget of the De-
partment (including the development of future 
year budgets and interaction with the Office of 
Management and Budget and with Congress) is 
compatible with the statutory and regulatory re-
sponsibilities of the Department and with the 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00093
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
Secretary’s priorities, strategic plans, and poli-
cies. 
‘‘(F) To represent the Department in any 
development of policy that requires the Depart-
ment to consult with another Federal agency, 
the Office of the President, a foreign govern-
ment, or any other governmental or private sec-
tor entity. 
‘‘(G) To supervise and oversee policy devel-
opment undertaken by the component agencies 
and offices of the Department. 
‘‘(H) To provide for the coordination and 
maintenance of the trade and customs revenue 
functions of the Department. 
‘‘(2) 
STRATEGIC
PLANNING
RESPONSIBIL-
ITIES.—Subject to the direction and control of the 
Secretary, the strategic planning responsibilities of 
the Under Secretary for Policy shall be as follows: 
‘‘(A) To conduct long-range, strategic 
planning for the Department. 
‘‘(B) To prepare national and Department 
strategies, as appropriate. 
‘‘(C) To conduct net assessments of issues 
facing the Department. 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00094
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
‘‘(3) INTERNATIONAL RESPONSIBILITIES.—Sub-
ject to the direction and control of the Secretary, the 
international responsibilities of the Under Secretary 
for Policy shall be as follows: 
‘‘(A) To promote the exchange of informa-
tion and the sharing of best practices and tech-
nology relating to homeland security with na-
tions friendly to the United States, including— 
‘‘(i) the exchange of information on 
research and development on homeland se-
curity technologies; 
‘‘(ii) joint training exercises of first 
responders in coordination with the Assist-
ant Secretary for Grants and Training; 
and 
‘‘(iii) exchanging expertise and infor-
mation on terrorism prevention, response, 
and crisis management. 
‘‘(B) To identify any homeland security-re-
lated area in which the United States and other 
nations and appropriate international organiza-
tions could collaborate to improve capabilities 
and to encourage the exchange of information 
or sharing of best practices and technology re-
lating to that area. 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00095
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
‘‘(C) To plan and participate in inter-
national conferences, exchange programs (in-
cluding the exchange of scientists, engineers, 
and other experts), and other training activities 
with friendly nations. 
‘‘(D) To manage international activities 
within the Department in coordination with 
other Federal officials with responsibility for 
counterterrorism matters. 
‘‘(E) To oversee the activities of Depart-
ment personnel operating in other countries or 
traveling to other countries. 
‘‘(F) To represent the Department in 
international negotiations, working groups, and 
standards-setting bodies. 
‘‘(4) PRIVATE SECTOR.— 
‘‘(A) To create and foster strategic com-
munications with the private sector to enhance 
the primary mission of the Department to pro-
tect the United States. 
‘‘(B) To advise the Secretary on the im-
pact on the private sector of the policies, regu-
lations, processes, and actions of the Depart-
ment. 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00096
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
‘‘(C) To create and manage private sector 
advisory councils composed of representatives of 
industries and associations designated by the 
Secretary— 
‘‘(i) to advise the Secretary on private 
sector products, applications, and solutions 
as they relate to homeland security chal-
lenges; and 
‘‘(ii) to advise the Secretary on home-
land security policies, regulations, proc-
esses, and actions that affect the partici-
pating industries and associations. 
‘‘(D) To promote existing public-private 
partnerships and develop new public-private 
partnerships to provide for collaboration and 
mutual support to address homeland security 
challenges. 
‘‘(E) To identify private sector resources 
and capabilities that could be effective in 
supplementing functions of the Department and 
State and local governments to prevent or re-
spond to acts of terrorism. 
‘‘(F) To coordinate among the Depart-
ment’s operating entities and with the Assistant 
Secretary for Trade Development of the De-
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00097
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
partment of Commerce on issues related to the 
travel and tourism industries. 
‘‘(5) TRADE
AND
CUSTOMS
REVENUE
FUNC-
TIONS.—The Under Secretary for Policy shall— 
‘‘(A) ensure that the trade and customs 
revenue functions of the Department are coordi-
nated within the Department and with other 
Federal departments and agencies, and that the 
impact on legitimate trade is taken into account 
in any action impacting these functions; and 
‘‘(B) monitor and report to Congress on 
the Department’s mandate to ensure that the 
trade and customs revenue functions of the De-
partment are not diminished, including how 
spending, operations, and personnel related to 
these functions have kept pace with the level of 
trade entering the United States. 
‘‘SEC. 602. OFFICE OF INTERNATIONAL AFFAIRS. 
‘‘(a) ESTABLISHMENT.—There is established within 
the Directorate of Policy, Planning, and International Af-
fairs an Office of International Affairs. The Office shall 
be headed by an Assistant Secretary, who shall be ap-
pointed by the Secretary. 
‘‘(b) DUTIES OF THE ASSISTANT SECRETARY.—The 
Assistant Secretary shall have the following duties: 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00098
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
HR 4954 PCS 
‘‘(1) To promote information and education ex-
change with nations friendly to the United States in 
order to promote sharing of best practices and tech-
nologies relating to homeland security. Such ex-
change shall include the following: 
‘‘(A) Exchange of information on research 
and development on homeland security tech-
nologies. 
‘‘(B) Joint training exercises of first re-
sponders. 
‘‘(C) Exchange of expertise on terrorism 
prevention, response, and crisis management. 
‘‘(2) To identify areas for homeland security in-
formation and training exchange where the United 
States has a demonstrated weakness and another 
friendly nation or nations have a demonstrated ex-
pertise. 
‘‘(3) To plan and undertake international con-
ferences, exchange programs, and training activities. 
‘‘(4) To manage international activities within 
the Department in coordination with other Federal 
officials with responsibility for counter-terrorism 
matters. 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00099
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
100 
HR 4954 PCS 
‘‘SEC. 603. OTHER OFFICES AND OFFICIALS. 
‘‘(a) IN GENERAL.—The Under Secretary for Policy 
shall establish the following offices in the Directorate for 
Policy, Planning, and International Affairs: 
‘‘(1) The Office of Policy, which shall be admin-
istered by an Assistant Secretary for Policy. 
‘‘(2) The Office of Strategic Plans, which shall 
be administered by an Assistant Secretary for Stra-
tegic Plans and which shall include— 
‘‘(A) a Secure Border Initiative Program 
Office; and 
‘‘(B) a Screening Coordination and Oper-
ations Office. 
‘‘(3) The Office of the Private Sector, which 
shall be administered by an Assistant Secretary for 
the Private Sector. 
‘‘(4) The Victim Assistance Officer. 
‘‘(5) The Tribal Security Officer. 
‘‘(6) Such other offices as considered necessary 
by the Under Secretary for Policy. 
‘‘(b) DIRECTOR OF CARGO SECURITY POLICY.— 
‘‘(1) IN GENERAL.—There shall be in the Di-
rectorate for Policy, Planning, and International Af-
fairs a Director of Cargo Security Policy (herein-
after in this subsection referred to as the ‘Director’), 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00100
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
101 
HR 4954 PCS 
who shall be subject to the direction and control of 
the Under Secretary for Policy. 
‘‘(2) RESPONSIBILITIES.—The Director shall— 
‘‘(A) advise the Assistant Secretary for 
Policy regarding all aspects of Department pro-
grams relating to cargo security; 
‘‘(B) develop Department-wide policies re-
garding cargo security; and 
‘‘(C) coordinate the cargo security policies 
and programs of the Department with other 
Federal departments and agencies, including by 
working with officials of the Department of En-
ergy and the Department of State, as appro-
priate, in negotiating international agreements 
relating to cargo security. 
‘‘(c) DIRECTOR OF TRADE POLICY.— 
‘‘(1) IN GENERAL.—There shall be in the Di-
rectorate for Policy, Planning, and International Af-
fairs a Director of Trade Policy (hereinafter in this 
subsection referred to as the ‘Director’), who shall 
be subject to the direction and control of the Under 
Secretary for Policy. 
‘‘(2) RESPONSIBILITIES.—The Director shall— 
‘‘(A) advise the Assistant Secretary for 
Policy regarding all aspects of Department pro-
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00101
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
102 
HR 4954 PCS 
grams relating to the trade and customs rev-
enue functions of the Department; 
‘‘(B) develop Department-wide policies re-
garding trade and customs revenue functions 
and trade facilitation; and 
‘‘(C) coordinate the trade and customs rev-
enue-related programs of the Department with 
other Federal departments and agencies. 
‘‘SEC. 604. CONSULTATION ON TRADE AND CUSTOMS REV-
ENUE FUNCTIONS. 
‘‘(a) IN GENERAL.—The Secretary and the Under 
Secretary for Policy shall consult with representatives of 
the business community involved in international trade, in-
cluding seeking the advice and recommendations of the 
Commercial Operations Advisory Committee (COAC), on 
Department policies and actions that have a significant 
impact on international trade and customs revenue func-
tions. 
‘‘(b) COAC CONSULTATION AND NOTIFICATION.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary shall seek the advice and recommenda-
tions of COAC on any proposed Department policies, 
initiatives, actions, or organizational reforms that 
will have a major impact on trade and customs rev-
enue functions not later than 45 days prior to the 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00102
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
103 
HR 4954 PCS 
finalization of the policies, initiatives, actions, or or-
ganizational reforms. 
‘‘(2) EXCEPTION.—If the Secretary determines 
that it is important to the national security interest 
of the United States to finalize any proposed De-
partment policies, initiatives, actions, or organiza-
tional reforms prior to the provision of advice and 
recommendations described in paragraph (1), the 
Secretary shall— 
‘‘(A) seek the advice and recommendations 
of COAC on the policies, initiatives, actions, or 
organizational reforms not later than 30 days 
after the date on which the policies, initiatives, 
actions, or organizational reforms are finalized; 
and 
‘‘(B) to the extent appropriate, modify the 
policies, initiatives, actions, or organizational 
reforms based upon the advice and rec-
ommendations of COAC. 
‘‘(c) CONGRESSIONAL CONSULTATION AND NOTIFI-
CATION.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary shall consult with and provide any rec-
ommendations of COAC received under subsection 
(b) to the appropriate congressional committees not 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00103
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
104 
HR 4954 PCS 
later than 30 days prior to the finalization of any 
Department policies, initiatives, actions or organiza-
tional reforms that will have a major impact on 
trade and customs revenue functions. 
‘‘(2) EXCEPTION.—If the Secretary determines 
that it is important to the national security interest 
of the United States to finalize any Department 
policies, initiatives, actions, or organizational re-
forms prior to the consultation described in para-
graph (1), the Secretary shall— 
‘‘(A) consult with and provide any rec-
ommendations of COAC received under sub-
section (b) to the appropriate congressional 
committees not later than 45 days after the 
date on which the policies, initiative, actions, or 
organizational reforms are finalized; and 
‘‘(B) to the extent appropriate, modify the 
policies, initiatives, actions, or organizational 
reforms based upon the consultations with the 
appropriate congressional committees.’’. 
(b) CONFORMING AMENDMENTS.—Section 879 of the 
Homeland Security Act of 2002 (6 U.S.C. 459) is re-
pealed. 
(c) CLERICAL AMENDMENTS.—The table of contents 
in section 1(b) of such Act is amended— 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00104
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
105 
HR 4954 PCS 
(1) by striking the item relating to section 879; 
(2) by striking the items relating to title VI and 
inserting the following: 
‘‘TITLE VI—POLICY, PLANNING, AND INTERNATIONAL AFFAIRS 
‘‘Sec. 601. Directorate for Policy, Planning, and International Affairs. 
‘‘Sec. 602. Office of International Affairs. 
‘‘Sec. 603. Other offices and officials.’’; 
and 
(3) by inserting after the items relating to title 
XVIII the following: 
‘‘TITLE XIX—MISCELLANEOUS PROVISIONS 
‘‘Sec. 1901. Treatment of charitable trusts for members of the armed forces of 
the United States and other governmental organizations.’’. 
SEC. 302. STUDY AND REPORT ON CUSTOMS REVENUE 
FUNCTIONS. 
(a) STUDY.— 
(1) IN
GENERAL.—The Comptroller General 
shall conduct a study evaluating the extent to which 
the Department of Homeland Security is meeting its 
obligations under section 412(b) of the Homeland 
Security Act of 2002 (6 U.S.C. 212(b)) with respect 
to the maintenance of customs revenue functions. 
(2) ANALYSIS.—The study shall include an 
analysis of— 
(A) the extent to which the customs rev-
enue functions carried out by the former U.S. 
Customs Service have been consolidated with 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00105
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
106 
HR 4954 PCS 
other functions of the Department (including 
the assignment of non-customs revenue func-
tions to personnel responsible for customs rev-
enue collection), discontinued, or diminished fol-
lowing the transfer of the U.S. Customs Service 
to the Department; 
(B) the extent to which staffing levels or 
resources attributable to customs revenue func-
tions have decreased since the transfer of the 
U.S. Customs Service to the Department; and 
(C) the extent to which the management 
structure created by the Department ensures 
effective trade facilitation and customs revenue 
collection. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Comptroller General shall 
submit to the appropriate congressional committees a re-
port on the results of study conducted under subsection 
(a). 
(c) DEFINITION.—In this section, the term ‘‘customs 
revenue functions’’ means the functions described in sec-
tion 412(b)(2) of the Homeland Security Act of 2002 (6 
U.S.C. 212(b)(2)). 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00106
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
107 
HR 4954 PCS 
TITLE IV—OFFICE OF DOMESTIC 
NUCLEAR DETECTION 
SEC. 401. ESTABLISHMENT OF OFFICE. 
(a) ESTABLISHMENT.—The Homeland Security Act 
of 2002 (6 U.S.C. 101 et seq.) is amended by adding at 
the end the following new title: 
‘‘TITLE XX—OFFICE OF DOMES-
TIC NUCLEAR DETECTION 
‘‘SEC. 2001. DOMESTIC NUCLEAR DETECTION OFFICE. 
‘‘(a) IN GENERAL.—There shall be in the Depart-
ment of Homeland Security a Domestic Nuclear Detection 
Office. 
‘‘(b) PURPOSE.—The purpose of the Office shall be 
to protect against the unauthorized importation, posses-
sion, storage, transportation, development, or use of a nu-
clear explosive device, fissile material, or radiological ma-
terial against the United States. 
‘‘(c) DIRECTOR.—The Office shall be headed by a Di-
rector of Domestic Nuclear Detection, who shall be ap-
pointed by the President from among individuals nomi-
nated by the Secretary. 
‘‘(d) LIMITATION.—This title shall not be construed 
to affect the performance, by directorates and agencies of 
the Department other than the Office, of functions that 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00107
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
108 
HR 4954 PCS 
are not related to detection and prevention of nuclear and 
radiological terrorism. 
‘‘SEC. 2002. FUNCTIONS OF DIRECTOR OF THE DOMESTIC 
NUCLEAR DETECTION OFFICE, GENERALLY. 
‘‘(a) IN GENERAL.—The Secretary shall vest in the 
Director the primary responsibility in the Department 
for— 
‘‘(1) administering all nuclear and radiological 
detection and prevention functions and assets of the 
Department, including those functions vested in the 
Department before the enactment of the Security 
and Accountability For Every Port Act; and 
‘‘(2) for coordinating such administration with 
nuclear and radiological detection and prevention ac-
tivities of other Federal departments and agencies. 
‘‘(b) TRANSFER
OF FUNCTIONS.—The Secretary 
shall transfer to the Director the authority to administer, 
or supervise the administration of, all functions, per-
sonnel, assets, and liabilities of all Department programs 
and projects relating to nuclear and radiological detection 
research, development, testing, and evaluation, and nu-
clear and radiological detection system acquisition and de-
ployment, including with respect to functions and assets 
transferred by section 303(1)(B), (C), and (E) and func-
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00108
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS
109 
HR 4954 PCS 
tions, assets, and personnel transferred pursuant to sec-
tion 2010(c). 
‘‘SEC. 2003. GLOBAL NUCLEAR DETECTION ARCHITECTURE. 
‘‘(a) IN GENERAL.—The Director shall coordinate 
the Federal Government’s implementation of a global nu-
clear detection architecture. 
‘‘(b) FUNCTIONS OF DIRECTOR.—The Director shall, 
under subsection (a)— 
‘‘(1) design a strategy that will guide deploy-
ment of the global nuclear detection architecture; 
‘‘(2) implement Department components of the 
strategy in the United States; and 
‘‘(3) coordinate Department and Federal inter-
agency efforts to deploy the elements of the global 
nuclear detection architecture outside the United 
States. 
‘‘(c) RELATIONSHIP TO OTHER DEPARTMENTS AND 
AGENCIES.—The authority of the Director under this sec-
tion shall not affect an authority or responsibility of any 
other department or agency of the Federal Government 
with respect to the deployment of nuclear and radiological 
detection systems under any program administered by 
that department or agency. 
VerDate Aug 31 2005 
00:17 May 17, 2006
Jkt 049196
PO 00000
Frm 00109
Fmt 6652
Sfmt 6201
E:\BILLS\H4954.PCS
H4954
ccoleman on PROD1PC71 with BILLS