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H.R. 4954 (109th): SAFE Port Act


The text of the bill below is as of May 4, 2006 (Passed the House).


HR 4954 EH

109th CONGRESS

2d Session

H. R. 4954

AN ACT

To improve maritime and cargo security through enhanced layered defenses, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title- This Act may be cited as the `Security and Accountability For Every Port Act' or `SAFE Port Act'.

    (b) Table of Contents- The table of contents for this Act is as follows:

      Sec. 1. Short title; table of contents.

      Sec. 2. Findings.

      Sec. 3. Definitions.

TITLE I--SECURITY OF UNITED STATES SEAPORTS

Subtitle A--General Provisions

      Sec. 101. Definition of transportation security incident.

      Sec. 102. Protocols for resumption of trade.

      Sec. 103. Requirements relating to maritime facility security plans.

      Sec. 104. Unannounced inspections of maritime facilities.

      Sec. 105. Verification of individuals with access to secure areas of seaports.

      Sec. 106. Clarification on eligibility for transportation security cards.

      Sec. 107. Enhanced crewmember identification.

      Sec. 108. Long-range vessel tracking.

      Sec. 109. Maritime security command centers.

Subtitle B--Grant and Training Programs

      Sec. 111. Port security grant program.

      Sec. 112. Port security training program.

      Sec. 113. Port security exercise program.

Subtitle C--Miscellaneous Provisions

      Sec. 121. Increase in port of entry inspection officers.

      Sec. 123. Border Patrol unit for United States Virgin Islands.

      Sec. 124. Report on ownership and operation of United States seaports.

      Sec. 125. Report on security operations at certain United States seaports.

      Sec. 126. Report on arrival and departure manifests for certain commercial vessels in the United States Virgin Islands.

      Sec. 127. Center of Excellence for Maritime Domain Awareness.

      Sec. 128. Report on security and trade at United States land ports.

TITLE II--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN

      Sec. 201. Security of the international supply chain.

      Sec. 202. Next generation supply chain security technologies.

      Sec. 203. International trade data system.

      Sec. 204. Foreign port assessments.

      Sec. 205. Pilot program to improve the security of empty containers.

      Sec. 206. Study and report on advanced imagery pilot programs.

      Sec. 207. Report on National Targeting Center.

      Sec. 208. Integrated Container Inspection System Pilot Project.

TITLE III--DIRECTORATE FOR POLICY, PLANNING, AND INTERNATIONAL AFFAIRS

      Sec. 301. Establishment of Directorate.

      Sec. 302. Study and report on customs revenue functions.

TITLE IV--OFFICE OF DOMESTIC NUCLEAR DETECTION

      Sec. 401. Establishment of Office.

      Sec. 402. Nuclear and radiological detection systems.

SEC. 2. FINDINGS.

    Congress makes the following findings:

      (1) Maritime vessels are the primary mode of transportation for international trade and they carry over 80 percent of international trade by volume.

      (2) In 2004, maritime vessels carried approximately 9,700,000 shipping containers into United States seaports at an average of 27,000 containers per day.

      (3) The security of the international container supply chain and the maritime transportation system is critical for the prosperity and liberty of all countries.

      (4) In its final report, the National Commission on Terrorist Attacks Upon the United States noted, `While commercial aviation remains a possible target, terrorists may turn their attention to other modes of transportation. Opportunities to do harm are as great, or greater in maritime or surface transportation.'.

      (5) In May 2002, the Brookings Institution estimated that costs associated with United States port closures from a detonated terrorist weapon could add up to $1 trillion from the resulting economic slump and changes in our Nation's inability to trade. Anticipated port closures on the west coast of the United States could cost the United States economy $1 billion per day for the first five days after a terrorist attack.

      (6) Significant steps have been taken since the terrorist attacks against the United States that occurred on September 11, 2001:

        (A) Congress passed the Maritime Transportation Security Act of 2002 on November 14, 2002.

        (B) The Coast Guard issued a comprehensive set of port security regulations on October 22, 2003.

        (C) The International Maritime Organization adopted the International Ship and Port Facility (ISPS) Code in December 2002.

        (D) The White House issued Homeland Security Presidential Directive-13 in September 2005 which lays out requirements for a comprehensive maritime security policy.

      (7) Through both public and private projects, the private sector in the United States and overseas has worked with the Department of Homeland Security to improve the security of the movement of cargo through the international supply chain.

      (8) Despite these steps, security gaps in the maritime transportation system remain, resulting in high-risk container systems not being checked overseas or domestically and ports that are vulnerable to terrorist attacks similar to the attack on the U.S.S. Cole.

      (9) Significant enhancements can be achieved by applying a multi-layered approach to supply chain security, in a coordinated fashion. Current supply chain programs within the Federal Government have been independently operated, often falling short of gains which could have been made if such programs were operated in a coordinated manner with clear system standards and a framework that creates incentives for security investments.

      (10) While it is impossible to completely remove the risk of a terrorist attack, security measures in the supply chain can add certainty and stability to the global economy, raise investor confidence, and facilitate trade. Some counterterrorism costs are integral to the price that must be paid to protect society. However, counterterrorism measures also present an opportunity to increase the efficiency of the global trade system through international harmonization of such measures. These efficiency gains are maximized when all countries adopt such counterterrorism measures.

      (11) Increasing transparency in the supply chain will assist in mitigating the impact of a terrorist attack by allowing for a targeted shutdown of the international supply chain and expedited restoration of commercial traffic.

      (12) International trade is vital to the Nation's economy and the well-being and livelihood of United States citizens.

      (13) The Department of Homeland Security's missions, including those related to United States and international borders, involve both building security for United States citizens and facilitating legitimate trade that is critical to the Nation.

      (14) In creating the Department of Homeland Security, Congress clearly mandated in section 412(b) of the Homeland Security Act of 2002 (6 U.S.C. 212(b)) that the customs revenue functions described in paragraph (2) of such section shall not be diminished.

SEC. 3. DEFINITIONS.

    In this Act:

      (1) APPROPRIATE CONGRESSIONAL COMMITTEES- The term `appropriate congressional committees' has the meaning given the term in section 2(2) of the Homeland Security Act of 2002 (6 U.S.C. 101(2)).

      (2) DEPARTMENT- The term `Department' means the Department of Homeland Security.

      (3) INTERNATIONAL SUPPLY CHAIN- The term `international supply chain' means the end-to-end process for shipping goods from a point of origin overseas to and from the United States.

      (4) SECRETARY- The term `Secretary' means the Secretary of Homeland Security.

TITLE I--SECURITY OF UNITED STATES SEAPORTS

Subtitle A--General Provisions

SEC. 101. DEFINITION OF TRANSPORTATION SECURITY INCIDENT.

    Section 70101(6) of title 46, United States Code, is amended by inserting after `economic disruption' the following `(other than economic disruption caused by acts that are unrelated to terrorism and are committed during a labor strike, demonstration, or other type of labor unrest)'.

SEC. 102. PROTOCOLS FOR RESUMPTION OF TRADE.

    (a) In General- Section 70103(a)(2)(J) of title 46, United States Code, is amended--

      (1) by striking `(J)' and inserting `(J)(i)'; and

      (2) by adding at the end the following new clause:

      `(ii) The plan required by clause (i) shall include protocols for the resumption of trade in the event of a transportation security incident that necessitates the suspension of trade through contingency and continuity planning that ensures trade lanes are restored as quickly as possible. The protocols shall be developed by the Secretary, in consultation with appropriate Federal, State, and local officials, including the Coast Guard Captain of the Port involved in the transportation security incident, and representatives of the maritime industry. The protocols shall provide for--

        `(I) coordination with appropriate Federal, State, and local agencies, the private sector, and appropriate overseas entities in developing such contingency and continuity planning;

        `(II) coordination with appropriate Federal, State, and local agencies and the private sector on law enforcement actions, inter-modal rerouting plans, and identification and prioritization of goods that may enter the United States; and

        `(III) designation of appropriate Federal officials to work with port authorities to reestablish the flow of cargo by prioritizing shipments based on appropriate factors, including factors relating to public health, national security, and economic need.'.

    (b) Effective Date- The Secretary of Homeland Security shall develop the protocols described in section 70103(a)(2)(J)(ii) of title 46, United States Code, as added by subsection (a), not later than 180 days after the date of the enactment of this Act.

SEC. 103. REQUIREMENTS RELATING TO MARITIME FACILITY SECURITY PLANS.

    (a) Facility Security Plans- Section 70103(c)(3) of title 46, United States Code, is amended--

      (1) in subparagraph (F), by striking `and' at the end;

      (2) in subparagraph (G), by striking the period at the end and inserting `; and'; and

      (3) by adding at the end the following new subparagraph:

      `(H) in the case of a security plan for a facility, be resubmitted for approval of each change in the ownership or operator of the facility that may substantially affect the security of the facility.'.

    (b) Facility Security Officers- Section 70103(c) of title 46, United States Code, is amended by adding at the end the following:

    `(8)(A) The Secretary shall require that the qualified individual having full authority to implement security actions for a facility described in paragraph (2) shall be a citizen of the United States.

    `(B) The Secretary may waive the requirement of subparagraph (A) with respect to an individual if the Secretary determines that it is appropriate to do so based on a complete background check of the individual and a review of all terrorist watchlists to ensure that the individual is not identified on any such terrorist watchlist.'.

    (c) Facility Security Access- Section 70103(c)(3)(C)(ii) of title 46, United States Code, is amended by adding at the end before the semicolon the following: `, including access by individuals engaged in the surface transportation of intermodal containers in or out of a port facility'.

SEC. 104. UNANNOUNCED INSPECTIONS OF MARITIME FACILITIES.

    Subparagraph (D) of section 70103(c)(4) of title 46, United States Code, is amended to read as follows:

      `(D) verify the effectiveness of each such facility security plan periodically, but not less than twice annually, at least one of which shall be an inspection of the facility that is conducted without notice to the facility.'.

SEC. 105. VERIFICATION OF INDIVIDUALS WITH ACCESS TO SECURE AREAS OF SEAPORTS.

    (a) Implementation of Requirements- Notwithstanding any other provision of law, the Secretary of Homeland Security shall--

      (1) not later than July 15, 2006, issue a notice of proposed rulemaking for regulations required to implement section 70105 of title 46, United States Code;

      (2) not later than November 15, 2006, issue final regulations required to implement that section; and

      (3) begin issuing transportation security cards to individuals at seaports facilities under subsection (b) of that section in accordance with the schedule contained in subsection (b)(2) of this section.

    (b) Transportation Security Cards-

      (1) MANAGEMENT- Final regulations issued under subsection (a)(2) shall provide for Federal management of the system for issuing transportation security cards.

      (2) SCHEDULE FOR ISSUING TRANSPORTATION SECURITY CARDS AT SEAPORTS-

        (A) Not later than May 15, 2007, the Secretary shall begin issuing transportation security cards to individuals at the first 25 seaport facilities listed on the facility vulnerability assessment issued by the Secretary under section 70102 of title 46, United States Code.

        (B) Not later than November 15, 2007, the Secretary shall begin issuing transportation security cards to individuals at the next 30 seaport facilities listed on that assessment.

        (C) Not later than November 15, 2008, the Secretary shall issue transportation security cards to individuals at all other seaport facilities.

    (c) Interim Verification of Individuals-

      (1) TERRORIST WATCH LIST COMPARISON AND IMMIGRATION RECORDS CHECK- Not later than 90 days after the date of enactment of this Act, the Secretary shall--

        (A) complete a comparison of each individual who has unescorted access to a secure area of a seaport facility (as designated in an approved facility security plan in accordance with section 70103(c) of title 46, United States Code) against terrorist watch lists to determine if the individual poses a threat; and

        (B) determine whether each such individual may be denied admission to the United States, or removed from the United States, under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).

      (2) CONTINUING REQUIREMENT- In the case of an individual who is given unescorted access to a secure area of a seaport facility after the date on which the Secretary completes the requirements of paragraph (1) and before the date on which the Secretary begins issuing transportation security cards at the seaport facility, the Secretary shall conduct a comparison of the individual against terrorist watch lists and determine whether the individual is lawfully present in the United States.

      (3) INTERIM FINAL REGULATIONS- In order to carry out this subsection, the Secretary shall issue interim final regulations to require submission to the Secretary of information necessary to carry out the requirements of paragraph (1).

      (4) PRIVACY REQUIREMENTS- Terrorist watch list comparisons and immigration records checks under this subsection shall be carried out in accordance with the requirements of section 552a of title 5, United States Code.

      (5) RESTRICTIONS ON USE AND MAINTENANCE OF INFORMATION-

        (A) RESTRICTION ON DISCLOSURE- Information obtained by the Secretary in the course of comparing the individual against terrorist watch lists under this subsection may not be made available to the public, including the individual's employer.

        (B) CONFIDENTIALITY; USE- Any information constituting grounds for prohibiting the employment of an individual in a position described in paragraph (1)(A) shall be maintained confidentially by the Secretary and may be used only for making determinations under this section. The Secretary may share any such information with appropriate Federal, State, local, and tribal law enforcement agencies.

      (6) TERRORIST WATCH LISTS DEFINED- In this subsection, the term `terrorist watch lists' means all available information on known or suspected terrorists or terrorist threats.

    (d) Reporting- Not later than 120 days after the date of enactment of this Act, the Secretary shall submit to the appropriate congressional committees a report containing information on--

      (1) the number of matches made in conducting terrorist watch list comparisons, and the number of individuals found to be unlawfully present in the United States, under subsection (c);

      (2) the corresponding seaport facilities at which the matches and unlawfully present individuals were identified; and

      (3) the actions taken as a result of the terrorist watchlist comparisons and immigration records checks under subsection (c).

    (e) Treatment of Individuals Receiving Hazardous Materials Endorsements-

      (1) IN GENERAL- To the extent the Secretary determines that the background records check conducted under section 5103a of title 49, United States Code, and the background records check conducted under section 70105 of title 46, United States Code, are equivalent, the Secretary shall determine that an individual does not pose a risk warranting denial of a transportation security card issued under section 70105 of title 46, United States Code, if such individual--

        (A) has successfully completed a background records check under section 5103a of title 49, United States Code; and

        (B) possesses a current and valid hazardous materials endorsement in accordance with section 1572 of title 49, Code of Federal Regulations.

      (2) LIMITATIONS- Notwithstanding paragraph (1), the Secretary may deny an individual a transportation security card under section 70105 of title 46, United States Code, if the Secretary has substantial evidence that the individual poses a risk to national security.

      (3) REDUCTION IN FEES- The Secretary shall reduce, to the extent practicable, any fees associated with obtaining a transportation security card under section 70105 of title 46, United States Code, for any individual referred to in paragraph (1).

    (f) Authorization of Appropriations- There is authorized to be appropriated $20,000,000 for fiscal year 2007 to carry out this section.

SEC. 106. CLARIFICATION ON ELIGIBILITY FOR TRANSPORTATION SECURITY CARDS.

    Section 70105(c)(2) of title 46, United States Code, is amended by inserting `subparagraph (A), (B), or (D) of' before `paragraph (1)'.

SEC. 107. ENHANCED CREWMEMBER IDENTIFICATION.

    Section 70111 of title 46, United States Code, is amended--

      (1) in subsection (a) by striking `The' and inserting `Not later than May 15, 2007, the'; and

      (2) in subsection (b) by striking `The' and inserting `Not later than May 15, 2007, the'.

SEC. 108. LONG-RANGE VESSEL TRACKING.

    (a) Regulations- Section 70115 of title 46, United States Code is amended in the first sentence by striking `The Secretary' and inserting `Not later than April 1, 2007, the Secretary'.

    (b) Voluntary Program- The Secretary of Homeland Security may issue regulations to establish a voluntary long-range automated vessel tracking system for vessels described in section 70115 of title 46, United States Code, during the period before regulations are issued under subsection (a) of such section.

SEC. 109. MARITIME SECURITY COMMAND CENTERS.

    (a) In General- Chapter 701 of title 46, United States Code, is amended by adding at the end the following new section:

`Sec. 70122. Maritime security command centers

    `(a) Establishment- The Secretary, in consultation with appropriate Federal, State, and local officials, shall establish an integrated network of virtual and physical maritime security command centers at appropriate United States seaports and maritime regions, as determined by the Secretary, to--

      `(1) enhance information sharing;

      `(2) facilitate day-to-day operational coordination; and

      `(3) in the case of a transportation security incident, facilitate incident management and response.

    `(b) Characteristics- Each maritime security command center described in subsection (a) shall--

      `(1) be regionally based and utilize where available the compositional and operational characteristics, facilities and information technology systems of current operational centers for port and maritime security and other similar existing facilities and systems;

      `(2) be adapted to meet the security needs, requirements, and resources of the seaport and maritime region the center will cover; and

      `(3) to the maximum extent practicable, not involve the construction of new facilities, but shall utilize information technology, virtual connectivity, and existing facilities to create an integrated, real-time communication and information sharing network.

    `(c) Participation-

      `(1) FEDERAL PARTICIPATION- The following entities shall participate in the integrated network of maritime security command centers described in subsection (a):

        `(A) The Coast Guard.

        `(B) U.S. Customs and Border Protection.

        `(C) U.S. Immigration and Customs Enforcement.

        `(D) Other appropriate Federal agencies.

      `(2) STATE AND LOCAL PARTICIPATION- Appropriate State and local law enforcement agencies may participate in the integrated network of maritime security command centers described in subsection (a).

    `(d) Responsibilities- Each maritime security command center described in subsection (a) shall--

      `(1) assist, as appropriate, in the implementation of maritime transportation security plans developed under section 70103;

      `(2) implement the transportation security incident response plans required under section 70104;

      `(3) carry out information sharing activities consistent with those activities required under section 1016 of the National Security Intelligence Reform Act of 2004 (6 U.S.C. 485) and the Homeland Security Information Sharing Act (6 U.S.C. 481 et seq.);

      `(4) conduct short- and long-range vessel tracking under sections 70114 and 70115; and

      `(5) carry out such other responsibilities as determined by the Secretary.

    `(e) Security Clearances- The Secretary shall sponsor and expedite individuals participating in a maritime security command center described in subsection (a) in gaining or maintaining their security clearances. Through the Captain of the Port, the Secretary may identify key individuals who should participate. In addition, the port or other entities may appeal to the Captain of the Port for sponsorship.

    `(f) Security Incidents- During a transportation security incident involving the port, the Coast Guard Captain of the Port designated by the Commandant of the Coast Guard in a maritime security command center described in subsection (a) shall act as the incident commander, unless otherwise directed by the President.

    `(g) Rule of Construction- Nothing in this section shall be construed to affect the normal command and control procedures for operational entities in the Department, unless so directed by the Secretary.

    `(h) Authorization of Appropriations- There are authorized to be appropriated $60,000,000 for each of the fiscal years 2007 through 2012 to carry out this section and section 108(c) of the Security and Accountability For Every Port Act.'.

    (b) Clerical Amendment- The table of sections at the beginning of chapter 701 of title 46, United States Code, is amended by adding at the end the following:

      `70122. Maritime security command centers.'.

    (c) Implementation Plan and Budget Analysis- The Secretary of Homeland Security shall submit to the appropriate congressional committees a plan for the implementation of section 70122 of title 46, United States Code, as added by subsection (a), and a budget analysis for the implementation of such section, including additional cost-sharing arrangements with other Federal departments and agencies and other participants involved in the maritime security command centers described in such section, not later than 180 days after the date of the enactment of this Act.

Subtitle B--Grant and Training Programs

SEC. 111. PORT SECURITY GRANT PROGRAM.

    (a) In General- Title V of the Homeland Security Act of 2002 (6 U.S.C. 311 et seq.) is amended--

      (1) by redesignating the second section 510 (as added by section 7303(d) of Public Law 108-458 (118 Stat. 3844)) as section 511; and

      (2) by adding at the end the following new section:

`SEC. 512. PORT SECURITY GRANT PROGRAM.

    `(a) Grants Authorized- The Secretary shall establish a grant program to allocate Federal financial assistance to United States seaports on the basis of risk and need.

    `(b) Prioritization Process- In awarding grants under this section, the Secretary shall conduct an assessment of United States seaports to develop a prioritization for awarding grants authorized under subsection (a) based upon--

      `(1) the most current risk assessment available from the Department;

      `(2) the national economic and strategic defense considerations of individual ports; and

      `(3) any other factors that the Secretary determines to be appropriate.

    `(c) Application-

      `(1) IN GENERAL- Any entity or facility subject to an Area Maritime Transportation Security Plan required under subsection (b) or (c) of section 70103 of title 46, United States Code, may submit an application for a grant under this section, at such time, in such form, and containing such information and assurances as the Secretary may require.

      `(2) MINIMUM STANDARDS FOR PAYMENT OR REIMBURSEMENT- Each application submitted under paragraph (1) shall include--

        `(A) a comprehensive description of--

          `(i) the purpose of the project for which the applicant seeks a grant under this section and why the applicant needs the grant;

          `(ii) the applicability of the project to the Area Maritime Transportation Security Plan and other homeland security plans;

          `(iii) the methodology for coordinating the project into the security of the greater port area, as identified in the Area Maritime Transportation Security Plan;

          `(iv) any existing cooperation or mutual aid agreements with other port facilities, vessels, organizations, or State, territorial, and local governments as such agreements relate to port security; and

          `(v) a capital budget showing how the applicant intends to allocate and expend the grant funds;

        `(B) a determination by the Captain of the Port that the project--

          `(i) addresses or corrects port security vulnerabilities; and

          `(ii) helps to ensure compliance with the Area Maritime Transportation Security Plan.

      `(3) PROCEDURAL SAFEGUARDS- The Secretary, in consultation with the Office of the Inspector General and the Office of Grants and Training, shall issue guidelines to establish appropriate accounting, reporting, and review procedures to ensure that--

        `(A) grant funds are used for the purposes for which they were made available;

        `(B) grantees have properly accounted for all expenditures of grant funds; and

        `(C) grant funds not used for such purposes and amounts not obligated or expended are returned.

    `(d) Use of Funds- Grants awarded under this section may be used--

      `(1) to help implement Area Maritime Transportation Security Plans required under section 70103(b) of title 46, United States Code, or the vessel or facility security plans required under section 70103(c) of title 46, United States Code;

      `(2) to remedy port security vulnerabilities identified through vulnerability assessments approved by the Secretary;

      `(3) for non-Federal projects contributing to the overall security of a seaport or a system of United States seaports, as determined by the Secretary;

      `(4) for the salaries, benefits, overtime compensation, and other costs of additional security personnel for State and local agencies for activities required by the Area Maritime Transportation Security Plan for a seaport area if the Secretary--

        `(A) increases the threat level under the Homeland Security Advisory System to Code Orange or Code Red; or

        `(B) raises the Maritime Security level to MARSEC Level 2 or 3;

      `(5) for the cost of acquisition, operation, and maintenance of equipment that contributes to the overall security of the port area, as identified in the Area Maritime Transportation Security Plan, if the need is based upon vulnerability assessments approved by the Secretary or identified in the Area Maritime Security Plan;

      `(6) to conduct vulnerability assessments approved by the Secretary;

      `(7) to purchase or upgrade equipment, including communications equipment that is interoperable with Federal, State, and local agencies and computer software, to enhance terrorism preparedness;

      `(8) to conduct exercises or training for prevention and detection of, preparedness for, response to, or recovery from terrorist attacks;

      `(9) to establish or enhance mechanisms for sharing terrorism threat information and to ensure that the mechanisms are interoperable with Federal, State, and local agencies;

      `(10) for the cost of equipment (including software) required to receive, transmit, handle, and store classified information;

      `(11) for the protection of critical infrastructure against potential attack by the addition of barriers, fences, gates, and other such devices, except that the cost of such measures may not exceed the greater of--

        `(A) $1,000,000 per project; or

        `(B) such greater amount as may be approved by the Secretary, which may not exceed 10 percent of the total amount of the grant;

      `(12) to conduct port-wide exercises to strengthen emergency preparedness of Federal, State, territorial, and local officials responsible for port security, including law enforcement personnel and firefighters and other first responders, in support of the Area Maritime Security Plan; and

      `(13) for the purpose of enhancing supply-chain security at truck inspection stations in or near high volume seaports in coordination with States and local government.

    `(e) Reimbursement of Costs- An applicant for a grant under this section may petition the Secretary for the reimbursement of the cost of any activity relating to prevention (including detection) of, preparedness for, response to, or recovery from acts of terrorism that is a Federal duty and usually performed by a Federal agency, and that is being performed by a State or local government (or both) under agreement with a Federal agency.

    `(f) Prohibited Uses- Grants awarded under this section may not be used to--

      `(1) supplant State or local funds for activities of the type described in subsection (d);

      `(2) construct buildings or other physical facilities;

      `(3) acquire land; or

      `(4) make any State or local government cost-sharing contribution.

    `(g) Matching Requirement-

      `(1) IN GENERAL- Except as provided in subparagraph (A) or (B) of paragraph (2), Federal funds for any eligible project under this section shall not exceed 75 percent of the total cost of such project.

      `(2) EXCEPTIONS-

        `(A) SMALL PROJECTS- The requirement of paragraph (1) shall not apply with respect to a project with a total cost of not more than $25,000.

        `(B) HIGHER LEVEL OF FEDERAL SUPPORT REQUIRED- The requirement of paragraph (1) shall not apply with respect to a project if the Secretary determines that the project merits support and cannot be undertaken without a higher rate of Federal support than the rate described in paragraph (1).

      `(3) IN-KIND CONTRIBUTIONS- Each recipient of a grant under this section may meet the requirement of paragraph (1) by making in-kind contributions of goods or services that are directly linked with the purpose for which the grant is made, as determined by the Secretary, including any necessary personnel expenses, contractor services, administrative costs, equipment, fuel, or maintenance, and rental space.

    `(h) Multiple Phase Projects-

      `(1) IN GENERAL- The Secretary may award grants under this section for projects that span multiple years.

      `(2) FUNDING LIMITATION- Not more than 20 percent of the total grant funds awarded under this section in any fiscal year may be awarded for projects that span multiple years.

    `(i) Consistency With Plans- The Secretary shall ensure that each grant awarded under this section--

      `(1) is used to supplement and support, in a consistent and coordinated manner, the applicable Area Maritime Transportation Security Plan; and

      `(2) is coordinated with any applicable State or Urban Area Homeland Security Plan.

    `(j) Coordination and Cooperation- The Secretary--

      `(1) shall ensure that all projects that receive grant funding under this section within any area defined in an Area Maritime Transportation Security Plan are coordinated with other projects in such area; and

      `(2) may require cooperative agreements among users of the seaport and seaport facilities with respect to projects funded under this section.

    `(k) Review and Audits- The Secretary shall require all grantees under this section to maintain such records as the Secretary may require and make such records available for review and audit by the Secretary, the Comptroller General of the United States, or the Inspector General of the Department.

    `(l) Quarterly Reports Required as a Condition of Homeland Security Grants-

      `(1) EXPENDITURE REPORTS REQUIRED- As a condition of receiving a grant under this section, the Secretary shall require the grant recipient to submit quarterly reports to the Secretary that describe each expenditure made by the recipient using grant funds.

      `(2) DEADLINE FOR REPORTS- Each report required under paragraph (1) shall be submitted not later than 30 days after the last day of a fiscal quarter and shall describe expenditures made during that fiscal quarter.

      `(3) PUBLICATION OF EXPENDITURES-

        `(A) IN GENERAL- Not later than one week after receiving a report under this subsection, the Secretary shall publish and make publicly available on the Internet website of the Department a description of each expenditure described in the report.

        `(B) WAIVER- The Secretary may waive the requirement of subparagraph (A) if the Secretary determines that it is in the national security interests of the United States to do so.

    `(m) Authorization of Appropriations-

      `(1) IN GENERAL- There are authorized to be appropriated $400,000,000 for each of fiscal years 2007 through 2012 to carry out this section.

      `(2) SOURCE OF FUNDS- Amounts authorized to be appropriated under paragraph (1) shall originate from duties collected by U.S. Customs and Border Protection.'.

    (b) Clerical Amendment- The table of contents in section 1(b) of the Homeland Security Act of 2002 (116 Stat. 2135) is amended by inserting after the item relating to section 509 the following:

      `Sec. 510. Procurement of security countermeasures for strategic national stockpile.

      `Sec. 511. Urban and other high risk area communications capabilities.

      `Sec. 512. Port security grant program.'.

    (c) Repeal-

      (1) IN GENERAL- Section 70107 of title 46, United States Code, is hereby repealed.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 701 of title 46, United States Code, is amended by striking the item relating to section 70107.

SEC. 112. PORT SECURITY TRAINING PROGRAM.

    (a) In General- Subtitle A of title VIII of the Homeland Security Act of 2002 (6 U.S.C. 361) is amended by adding at the end the following new section:

`SEC. 802. PORT SECURITY TRAINING PROGRAM.

    `(a) In General- The Secretary, acting through the Assistant Secretary for Grants and Training and in coordination with components of the Department with maritime security expertise, including the Coast Guard, the Transportation Security Administration, and U.S. Customs and Border Protection, shall establish a Port Security Training Program (hereinafter in this section referred to as the `Program') for the purpose of enhancing the capabilities of each of the Nation's commercial seaports to prevent, prepare for, respond to, mitigate against, and recover from threatened or actual acts of terrorism, natural disasters, and other emergencies.

    `(b) Requirements- The Program shall provide validated training that--

      `(1) reaches multiple disciplines, including Federal, State, and local government officials, commercial seaport personnel and management, and governmental and nongovernmental emergency response providers;

      `(2) provides training at the awareness, performance, and management and planning levels;

      `(3) utilizes multiple training mediums and methods, including--

        `(A) direct delivery;

        `(B) train-the-trainer;

        `(C) computer-based training;

        `(D) web-based training; and

        `(E) video teleconferencing;

      `(4) addresses port security topics, including--

        `(A) seaport security plans and procedures, including how security plans and procedures are adjusted when threat levels increase;

        `(B) seaport security force operations and management;

        `(C) physical security and access control at seaports;

        `(D) methods of security for preventing and countering cargo theft;

        `(E) container security;

        `(F) recognition and detection of weapons, dangerous substances, and devices;

        `(G) operation and maintenance of security equipment and systems;

        `(H) security threats and patterns;

        `(I) security incident procedures, including procedures for communicating with governmental and nongovernmental emergency response providers; and

        `(J) evacuation procedures;

      `(5) is consistent with, and supports implementation of, the National Incident Management System, the National Response Plan, the National Infrastructure Protection Plan, the National Preparedness Guidance, the National Preparedness Goal, and other such national initiatives;

      `(6) is evaluated against clear and consistent performance measures;

      `(7) addresses security requirements under facility security plans; and

      `(8) educates, trains, and involves populations of at-risk neighborhoods around ports, including training on an annual basis for neighborhoods to learn what to be watchful for in order to be a `citizen corps', if necessary.

    `(c) National Voluntary Consensus Standards- The Secretary shall--

      `(1) support the development, promulgation, and regular updating as necessary of national voluntary consensus standards for port security training; and

      `(2) ensure that the training provided under this section is consistent with such standards.

    `(d) Training Partners- In developing and delivering training under the Program, the Secretary shall--

      `(1) work with government training facilities, academic institutions, private organizations, employee organizations, and other entities that provide specialized, state-of-the-art training for governmental and nongovernmental emergency responder providers or commercial seaport personnel and management; and

      `(2) utilize, as appropriate, training courses provided by community colleges, public safety academies, State and private universities, and other facilities.

    `(e) Consultation- The Secretary shall ensure that, in carrying out the Program, the Office of Grants and Training shall consult with--

      `(1) a geographic and substantive cross section of governmental and nongovernmental emergency response providers; and

      `(2) commercial seaport personnel and management.

    `(f) Commercial Seaport Personnel Defined- For purposes of this section, the term `commercial seaport personnel' means any person engaged in an activity relating to the loading or unloading of cargo, the movement or tracking of cargo, the maintenance and repair of intermodal equipment, the operation of cargo-related equipment (whether or not integral to the vessel), and the handling of mooring lines on the dock when a vessel is made fast or let go, in the United States or the coastal waters thereof.'.

    (b) Clerical Amendment- The table of contents in section 1(b) of the Homeland Security Act of 2002 (116 Stat. 2135) is amended by inserting after the item relating to section 801 the following:

      `Sec. 802. Port security training program.'.

    (c) Vessel and Facility Security Plans- Section 70103(c)(3) of title 46, United States Code, is amended--

      (1) in subparagraph (E), by striking `the training, periodic unannounced drills, and';

      (2) by redesignating subparagraphs (F) and (G) as subparagraphs (G) and (H), respectively; and

      (3) by inserting after subparagraph (E) the following new subparagraph:

      `(F) provide a strategy and timeline for conducting training and periodic unannounced drills for persons on the vessel or at the facility to be carried out under the plan to deter, to the maximum extent practicable, a transportation security incident or a substantial threat of such a transportation security incident;'.

SEC. 113. PORT SECURITY EXERCISE PROGRAM.

    (a) In General- Subtitle A of title VIII of the Homeland Security Act of 2002 (6 U.S.C. 361), as amended by section 112, is further amended by adding at the end the following new section:

`SEC. 803. PORT SECURITY EXERCISE PROGRAM.

    `(a) In General- The Secretary, acting through the Assistant Secretary for Grants and Training, shall establish a Port Security Exercise Program (hereinafter in this section referred to as the `Program') for the purpose of testing and evaluating the capabilities of Federal, State, local, and foreign governments, commercial seaport personnel and management, governmental and nongovernmental emergency response providers, the private sector, or any other organization or entity, as the Secretary determines to be appropriate, to prevent, prepare for, mitigate against, respond to, and recover from acts of terrorism, natural disasters, and other emergencies at commercial seaports.

    `(b) Requirements- The Secretary, acting through the Assistant Secretary for Grants and Training and in coordination with components of the Department with maritime security expertise, including the Coast Guard, the Transportation Security Administration, and U.S. Customs and Border Protection, shall ensure that the Program--

      `(1) consolidates all existing port security exercise programs administered by the Department;

      `(2) conducts, on a periodic basis, port security exercises at commercial seaports that are--

        `(A) scaled and tailored to the needs of each port;

        `(B) live in the case of the most at-risk ports;

        `(C) as realistic as practicable and based on current risk assessments, including credible threats, vulnerabilities, and consequences;

        `(D) consistent with the National Incident Management System, the National Response Plan, the National Infrastructure Protection Plan, the National Preparedness Guidance, the National Preparedness Goal, and other such national initiatives;

        `(E) evaluated against clear and consistent performance measures;

        `(F) assessed to learn best practices, which shall be shared with appropriate Federal, State, and local officials, seaport personnel and management; governmental and nongovernmental emergency response providers, and the private sector; and

        `(G) followed by remedial action in response to lessons learned; and

      `(3) assists State and local governments and commercial seaports in designing, implementing, and evaluating exercises that--

        `(A) conform to the requirements of paragraph (2); and

        `(B) are consistent with any applicable Area Maritime Transportation Security Plan and State or Urban Area Homeland Security Plan.

    `(c) Remedial Action Management System- The Secretary, acting through the Assistant Secretary for Grants and Training, shall establish a Remedial Action Management System to--

      `(1) identify and analyze each port security exercise for lessons learned and best practices;

      `(2) disseminate lessons learned and best practices to participants in the Program;

      `(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.

    `(d) Grant Program Factor- In evaluating and prioritizing applications for Federal financial assistance under section 512, the Secretary shall give additional consideration to those applicants that have conducted port security exercises under this section.

    `(e) Consultation- The Secretary shall ensure that, in carrying out the Program, the Office of Grants and Training shall consult with--

      `(1) a geographic and substantive cross section of governmental and nongovernmental emergency response providers; and

      `(2) commercial seaport personnel and management.

    `(f) Commercial Seaport Personnel Defined- For purposes of this section, the term `commercial seaport personnel' means any person engaged in an activity relating to the loading or unloading of cargo, the movement or tracking of cargo, the maintenance and repair of intermodal equipment, the operation of cargo-related equipment (whether or not integral to the vessel), and the handling of mooring lines on the dock when a vessel is made fast or let go, in the United States or the coastal waters thereof.'.

    (b) Clerical Amendment- The table of contents in section 1(b) of the Homeland Security Act of 2002 (116 Stat. 2135), as amended by section 112, is further amended by inserting after the item relating to section 802 the following:

      `Sec. 803. Port security exercise program.'.

Subtitle C--Miscellaneous Provisions

SEC. 121. INCREASE IN PORT OF ENTRY INSPECTION OFFICERS.

    (a) In General- The Secretary of Homeland Security shall increase by not less than 200 the number of positions for full-time active duty port of entry inspection officers of the Department of Homeland Security for each of the fiscal years 2007 through 2012.

    (b) Authorization of Appropriations- There are authorized to be appropriated to the Secretary to carry out subsection (a) the following amounts for the following fiscal years:

      (1) $20,000,000 for fiscal year 2007.

      (2) $40,000,000 for fiscal year 2008.

      (3) $60,000,000 for fiscal year 2009.

      (4) $80,000,000 for fiscal year 2010.

      (5) $100,000,000 for fiscal year 2011.

      (6) $120,000,000 for fiscal year 2012.

SEC. 123. BORDER PATROL UNIT FOR UNITED STATES VIRGIN ISLANDS.

    Not later than 180 days after the date of the enactment of this Act, the Secretary of Homeland Security shall establish at least one Border Patrol unit for the Virgin Islands of the United States.

SEC. 124. REPORT ON OWNERSHIP AND OPERATION OF UNITED STATES SEAPORTS.

    Not later than 180 days after the date of the enactment of this Act, the Secretary of Homeland Security shall submit to the appropriate congressional committees a report that contains--

      (1) the name of each individual or entity that leases, operates, manages, or owns real property or facilities at each United States seaport; and

      (2) any other information that the Secretary determines to be appropriate.

SEC. 125. REPORT ON SECURITY OPERATIONS AT CERTAIN UNITED STATES SEAPORTS.

    (a) Study- The Secretary of Homeland Security shall conduct a study on the adequacy of security operations at the ten United States seaports that load and unload the largest amount of containers.

    (b) Report- Not later than 270 days after the date of the enactment of this Act, the Secretary shall submit to the appropriate congressional committees a report on the results of the study required by subsection (a).

SEC. 126. REPORT ON ARRIVAL AND DEPARTURE MANIFESTS FOR CERTAIN COMMERCIAL VESSELS IN THE UNITED STATES VIRGIN ISLANDS.

    Not later than 90 days after the date of the enactment of this Act, the Secretary of Homeland Security shall submit to the appropriate congressional committees a report on the impact of implementing the requirements of section 231 of the Immigration and Nationality Act (8 U.S.C. 1221) (relating to providing United States border officers with arrival and departure manifests) with respect to commercial vessels that are fewer than 300 gross tons and operate exclusively between the territorial waters of the United States Virgin Islands and the territorial waters of the British Virgin Islands.

SEC. 127. CENTER OF EXCELLENCE FOR MARITIME DOMAIN AWARENESS.

    (a) Establishment- The Secretary of the Homeland Security shall establish a university-based Center for Excellence for Maritime Domain Awareness following the merit-review processes and procedures that have been established by the Secretary for selecting university program centers of excellence.

    (b) Duties- The Center shall--

      (1) prioritize its activities based on the `National Plan to Improve Maritime Domain Awareness' published by the Department of Homeland Security in October 2005;

      (2) recognize the extensive previous and ongoing work and existing competence in the field of maritime domain awareness at numerous academic and research institutions, such as the Naval Postgraduate School;

      (3) leverage existing knowledge and continue development of a broad base of expertise within academia and industry in maritime domain awareness; and

      (4) provide educational, technical, and analytical assistance to Federal agencies with responsibilities for maritime domain awareness, including the Coast Guard, to focus on the need for interoperability, information sharing, and common information technology standards and architecture.

SEC. 128. REPORT ON SECURITY AND TRADE AT UNITED STATES LAND PORTS.

    (a) Study- The Secretary of Homeland Security shall conduct a study on the challenges to balance the need for greater security while maintaining the efficient flow of trade at United States land ports.

    (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 on the results of the study required by subsection (a).

TITLE II--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN

SEC. 201. SECURITY OF THE INTERNATIONAL SUPPLY CHAIN.

    (a) In General- 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 XVIII--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN

`Subtitle A--General Provisions

`SEC. 1801. STRATEGIC PLAN TO ENHANCE THE SECURITY OF THE INTERNATIONAL SUPPLY CHAIN.

    `(a) Strategic Plan- The Secretary, in consultation with appropriate Federal, State, local, and tribal government agencies and private sector stakeholders responsible for security matters that affect or relate to the movement of containers through the international supply chain, shall develop and implement, and update as appropriate, a strategic plan to enhance the security of the international supply chain.

    `(b) Requirements- The strategic plan required under subsection (a) shall--

      `(1) describe the roles, responsibilities, and authorities of Federal, State, local, and tribal government agencies and private sector stakeholders that relate to the security of the movement of containers through the international supply chain;

      `(2) identify and address gaps and unnecessary overlaps in the roles, responsibilities, or authorities described in paragraph (1);

      `(3) identify and make recommendations regarding legislative, regulatory, and organizational changes necessary to improve coordination among the entities or to enhance the security of the international supply chain;

      `(4) provide measurable goals, including objectives, mechanisms, and a schedule, for furthering the security of commercial operations from point of origin to point of destination;

      `(5) build on available resources and consider costs and benefits;

      `(6) provide incentives for additional voluntary measures to enhance cargo security, as determined by the Secretary;

      `(7) consider the impact of supply chain security requirements on small and medium size companies;

      `(8) include a process for sharing intelligence and information with private sector stakeholders to assist in their security efforts;

      `(9) identify a framework for prudent and measured response in the event of a transportation security incident involving the international supply chain;

      `(10) provide a plan for the expeditious resumption of the flow of legitimate trade in accordance with section 70103(a)(2)(J)(ii) of title 46, United States Code;

      `(11) consider the linkages between supply chain security and security programs within other systems of movement, including travel security and terrorism finance programs; and

      `(12) expand upon and relate to existing strategies and plans, including the National Strategy for Maritime Security and the eight supporting plans of the Strategy, as required by Homeland Security Presidential Directive-13 (September 2005).

    `(c) Utilization of Advisory Committees- As part of the consultations described in subsection (a), the Secretary shall, to the extent practicable, utilize the Homeland Security Advisory Committee, the National Maritime Security Advisory Committee, and the Commercial Operations Advisory Committee to review, as necessary, the draft strategic plan and any subsequent updates to the strategic plan.

    `(d) International Standards and Practices- In furtherance of the strategic plan required under subsection (a), the Secretary is encouraged to consider proposed or established standards and practices of foreign governments and international organizations, including the International Maritime Organization, the World Customs Organization, the International Labor Organization, and the International Organization for Standardization, as appropriate, to establish standards and best practices for the security of containers moving through the international supply chain.

    `(e) Report-

      `(1) INITIAL REPORT- The Secretary shall submit to the appropriate congressional committees a report that contains the strategic plan required by subsection (a).

      `(2) FINAL REPORT- Not later than three years after the date on which the strategic plan is submitted under paragraph (1), the Secretary shall submit to the appropriate congressional committees a report that contains an update of the strategic plan.

    `(f) Definition- In this section, the term `transportation security incident' has the meaning given the term in section 70101(6) of title 46, United States Code.

`SEC. 1802. TRANSMISSION OF ADDITIONAL DATA ELEMENTS FOR IMPROVED HIGH RISK TARGETING.

    `(a) Requirement- The Secretary shall require transmission to the Department, through an electronic data interchange system, of additional data elements for improved high risk targeting, including appropriate security elements of entry data, as determined by the Secretary, to be provided as advanced information with respect to cargo destined for importation into the United States prior to loading of such cargo on vessels at foreign seaports.

    `(b) Regulations- The Secretary shall promulgate regulations to carry out this section. In promulgating such regulations, the Secretary shall adhere to the parameters applicable to the development of regulations under section 343(a) of the Trade Act of 2002 (19 U.S.C. 2071 note), including provisions relating to consultation, technology, analysis, use of information, confidentiality, and timing requirements.

`SEC. 1803. PLAN TO IMPROVE THE AUTOMATED TARGETING SYSTEM.

    `(a) Plan- The Secretary shall develop and implement a plan to improve the Automated Targeting System for the identification of high-risk containers moving through the international supply chain.

    `(b) Contents-

      `(1) TREATMENT OF RECOMMENDATIONS- The Secretary shall include in the plan required under subsection (a) a schedule to address the recommendations of the Comptroller General of the United States, the Inspector General of the Department of the Treasury, and the Inspector General of the Department of Homeland Security with respect to the operation of the Automated Targeting System.

      `(2) INFORMATION SUBMISSIONS- In developing the plan required under subsection (a), the Secretary shall consider the cost, benefit, and feasibility of--

        `(A) requiring additional nonmanifest documentation for each container;

        `(B) adjusting the time period allowed by law for revisions to a container cargo manifest;

        `(C) adjusting the time period allowed by law for submission of entry data for vessel or cargo; and

        `(D) such other actions the Secretary considers beneficial for improving the information relied upon for the Automated Targeting System and any other targeting systems in furthering the security and integrity of the international supply chain.

      `(3) OUTSIDE REVIEW- The Secretary shall conduct, through an independent panel, a review of the Automated Targeting System. The results of this review shall be included in the plan required under subsection (a).

      `(4) SMART SYSTEM- The Secretary shall consider future iterations of the Automated Targeting System, which would incorporate smart features, such as more complex algorithms and real-time intelligence, instead of relying solely on rule sets that are periodically updated. The Secretary shall also consider how the Automated Targeting System could be improved through linkages with targeting systems in existence on the date of the enactment of the Security and Accountability For Every Port Act for travel security and terrorism finance programs.

    `(c) New or Expanded Information Submissions- In considering any new or expanded information submission requirements, the Secretary shall consult with stakeholders and identify the need for such information, provide safeguards that ensure confidentiality with respect to such information, and identify appropriate timing of the submission of such information, in the plan required under subsection (a).

    `(d) Secure Transmission of Certain Information- All information required by the Department from supply chain partners shall be transmitted in a secure fashion, as determined by the Secretary, so as to protect the information from unauthorized access.

    `(e) Authorization of Appropriations- There are authorized to be appropriated $5,000,000 for each of the fiscal years 2007 through 2012 to carry out this section.

`SEC. 1804. CONTAINER STANDARDS AND VERIFICATION PROCEDURES.

    `(a) Establishment-

      `(1) IN GENERAL- The Secretary shall establish minimum standards and verification procedures for securing containers in transit to the United States relating to the sealing of containers.

      `(2) DEADLINE FOR ENFORCEMENT- Not later than two years after the date on which the standards and procedures are established pursuant to paragraph (1), all containers bound for ports of entry in the United States shall meet such standards and procedures.

    `(b) Review and Enhancement- The Secretary shall regularly--

      `(1) review the standards and procedures established pursuant to subsection (a); and

      `(2) enhance the security standards and procedures, as appropriate, based on tests of technologies as they become commercially available to detect container intrusion and the highest consequence threats, particularly weapons of mass destruction.

    `(c) International Cargo Security Standards- The Secretary, in consultation with the Secretary of State, is encouraged to promote and establish international standards for the security of containers moving through the international supply chain with foreign governments and international organizations, including the International Maritime Organization and the World Customs Organization.

    `(d) International Trade and Other Obligations- In carrying out this section, the Secretary shall consult with appropriate Federal departments and agencies and private sector stakeholders and ensure that actions under this section do not violate international trade obligations or other international obligations of the United States.

`SEC. 1805. CONTAINER SECURITY INITIATIVE (CSI).

    `(a) Authorization- The Secretary is authorized to establish and implement a program (to be known as the `Container Security Initiative' or `CSI') to identify and examine maritime containers that pose a risk for terrorism at foreign ports before the containers are shipped to the United States.

    `(b) Assessment- Before the Secretary designates any foreign port under CSI, the Secretary, in consultation with other Federal officials, as appropriate, shall conduct an assessment of the port, including--

      `(1) the level of risk for the potential compromise of containers by terrorists or terrorist weapons;

      `(2) the volume of regular container traffic to United States ports;

      `(3) the results of the Coast Guard assessments conducted pursuant to section 70108 of title 46, United States Code;

      `(4) the commitment of the host nation to cooperating with the Department in sharing critical data and risk management information and to maintain programs to ensure employee integrity; and

      `(5) the potential for validation of security practices by the Department.

    `(c) Notification- The Secretary shall notify the appropriate congressional committees prior to notifying the public of the designation of a foreign port under CSI.

    `(d) Inspections-

      `(1) REQUIREMENTS AND PROCEDURES- The Secretary shall--

        `(A) establish technical capability criteria and standard operating procedures for the use of nonintrusive inspection and nuclear and radiological detection systems in conjunction with CSI;

        `(B) require each port designated under CSI to operate nonintrusive inspection and nuclear and radiological detection systems in accordance with the technical capability criteria and standard operating procedures established under subparagraph (A); and

        `(C) continually monitor the technologies, processes, and techniques used to inspect cargo at ports designated under CSI.

      `(2) CONSISTENCY OF STANDARDS AND PROCEDURES- The Secretary shall ensure that the technical capability criteria and standard operating procedures established under paragraph (1)(A) are consistent with such standards and procedures of any other department or agency of the Federal government with respect to deployment of nuclear and radiological detection systems outside the United States.

      `(3) FOREIGN ASSISTANCE-

        `(A) IN GENERAL- The Secretary, in consultation with the Secretary of State, the Secretary of Energy, and the heads of other Federal agencies, shall identify foreign assistance programs that could facilitate the implementation of cargo security antiterrorism measures at ports designated under CSI and foreign ports not designated under CSI that lack effective antiterrorism measures.

        `(B) ACQUISITION- The Secretary is authorized to loan or otherwise assist in the deployment of nonintrusive inspection or nuclear and radiological detection systems for cargo containers at each designated CSI port under such terms and conditions as the Secretary determines to be appropriate and to provide training for foreign personnel involved in CSI.

    `(e) Prohibition-

      `(1) IN GENERAL- The Secretary shall issue a `do not load' order to each port designated under CSI to prevent the onload of any cargo that has been identified as higher risk by the Automated Targeting System unless the cargo--

        `(A) is scanned with a non intrusive imagery device and nuclear or radiological detection equipment;

        `(B) is devanned and inspected with nuclear or radiological detection equipment; or

        `(C) is determined to be of lower risk following additional inquiries by appropriate personnel of U.S. Customs and Border Protection.

      `(2) RULE OF CONSTRUCTION- Nothing in this subsection shall be construed to interfere with the ability of the Secretary to deny entry of any cargo into the United States.

    `(f) Report- The Secretary shall submit to the appropriate congressional committees not later than March 1 of each year a report on the status of CSI, including--

      `(1) a description of the security improvements gained through CSI;

      `(2) the rationale for the continuance of each port designated under CSI;

      `(3) an assessment of the personnel needs at each port designated under CSI; and

      `(4) a description of the potential for remote targeting to decrease the number of personnel who are deployed at foreign ports under CSI.

    `(g) Authorization of Appropriations- There are authorized to be appropriated $196,000,000 for each of the fiscal years 2007 through 2012 to carry out this section.

`SEC. 1806. INFORMATION SHARING RELATING TO SUPPLY CHAIN SECURITY COOPERATION.

    `(a) Purposes- The purposes of this section are--

      `(1) to establish continuing liaison and to provide for supply chain security cooperation between Department and the private sector; and

      `(2) to provide for regular and timely interchange of information between the private sector and the Department concerning developments and security risks in the supply chain environment.

    `(b) Secure System- The Secretary shall develop a secure electronic data interchange system to collect from and share appropriate risk information related to securing the supply chain with the private sector entities determined appropriate by the Secretary.

    `(c) Consultation- In developing the system under subsection (b), the Secretary shall consult with the Commercial Operations Advisory Committee and a broad range of public and private sector entities likely to utilize the system, including importers, exporters, carriers, customs brokers, and freight forwarders, among other parties.

    `(d) Procedures- The Secretary shall establish uniform procedures for the receipt, care, and storage of supply chain security information that is voluntarily submitted to the Department through the system developed under subsection (b).

    `(e) Limitations- The voluntary information collected through the system developed under subsection (b) shall be used exclusively for ensuring security and shall not be used for determining entry or for any other commercial enforcement purpose. The voluntary information submitted to the Department through the system developed under subsection (b) shall not be construed to constitute compliance with any requirement to submit such information to a Federal agency under any other provision of law.

    `(f) Participants- The Secretary shall develop protocols for determining appropriate private sector personnel who shall have access to the system developed under subsection (b). Such personnel shall include designated security officers within companies that are determined to be low risk through participation in the Customs-Trade Partnership Against Terrorism program established pursuant to subtitle B of this title.

    `(g) Confidentiality- Notwithstanding any other provision of law, information that is voluntarily submitted by the private sector to the Department through the system developed under subsection (b)--

      `(1) shall be exempt from disclosure under section 552 of title 5, United States Code (commonly referred to as the Freedom of Information Act);

      `(2) shall not, without the written consent of the person or entity submitting such information, be used directly by the Department or a third party, in any civil action arising under Federal or State law if such information is submitted in good faith; and

      `(3) shall not, without the written consent of the person or entity submitting such information, be used or disclosed by any officer or employee of the United States for purposes other than the purposes of this section, except--

        `(A) in furtherance of an investigation or other prosecution of a criminal act; or

        `(B) when disclosure of the information would be--

          `(i) to either House of Congress, or to the extent of matter within its jurisdiction, any committee or subcommittee thereof, any joint committee thereof or subcommittee of any such joint committee; or

          `(ii) to the Comptroller General, or any authorized representative of the Comptroller General, in the course of the performance of the duties of the Comptroller General.

    `(h) Independently Obtained Information- Nothing in this section shall be construed to limit or otherwise affect the ability of a Federal, State, or local, government entity, under applicable law, to obtain supply chain security information, including any information lawfully and properly disclosed generally or broadly to the public and to use such information in any manner permitted by law.

    `(i) Penalties- Whoever, being an officer or employee of the United States or of any department or agency thereof, knowingly publishes, divulges, discloses, or makes known in any manner or to any extent not authorized by law, any supply chain security information protected in this section from disclosure, shall be fined under title 18, United States Code, imprisoned not more than 1 year, or both, and shall be removed from office or employment.

    `(j) Authority to Issue Warnings- The Secretary may provide advisories, alerts, and warnings to relevant companies, targeted sectors, other governmental entities, or the general public regarding potential risks to the supply chain as appropriate. In issuing a warning, the Secretary shall take appropriate actions to protect from disclosure--

      `(1) the source of any voluntarily submitted supply chain security information that forms the basis for the warning; and

      `(2) information that is proprietary, business sensitive, relates specifically to the submitting person or entity, or is otherwise not appropriately in the public domain.

`Subtitle B--Customs-Trade Partnership Against Terrorism (C-TPAT)

`SEC. 1811. ESTABLISHMENT.

    `(a) Establishment- The Secretary is authorized to establish a voluntary program (to be known as the `Customs-Trade Partnership Against Terrorism' or `C-TPAT') to strengthen and improve the overall security of the international supply chain and United States border security.

    `(b) Minimum Security Requirements- The Secretary shall review the minimum security requirements of C-TPAT at least once every year and update such requirements as necessary.

`SEC. 1812. ELIGIBLE ENTITIES.

    `Importers, brokers, forwarders, air, sea, land carriers, contract logistics providers, and other entities in the international supply chain and intermodal transportation system are eligible to apply to voluntarily enter into partnerships with the Department under C-TPAT.

`SEC. 1813. MINIMUM REQUIREMENTS.

    `An applicant seeking to participate in C-TPAT shall--

      `(1) demonstrate a history of moving commerce in the international supply chain;

      `(2) conduct an assessment of its supply chains based upon security criteria established by the Secretary, including--

        `(A) business partner requirements;

        `(B) container security;

        `(C) physical security and access controls;

        `(D) personnel security;

        `(E) procedural security;

        `(F) security training and threat awareness; and

        `(G) information technology security;

      `(3) implement and maintain security measures and supply chain security practices meeting security criteria; and

      `(4) meet all other requirements established by the Secretary.

`SEC. 1814. TIER ONE PARTICIPANTS.

    `(a) Benefits- The Secretary may offer limited benefits to C-TPAT participants whose security measures and supply chain security practices have been certified in accordance with the guidelines established pursuant to subsection (b).

    `(b) Guidelines- The Secretary shall update guidelines for certifying a C-TPAT participant's security measures and supply chain security practices under this section.

`SEC. 1815. TIER TWO PARTICIPANTS.

    `(a) In General- Not later than one year after a C-TPAT participant has been certified under section 1814, the Secretary shall validate, directly or through third party entities certified in accordance with section 1817, the security measures and supply chain security practices of that participant. Such validation shall include assessments at appropriate foreign locations utilized by the participant as part of the supply chain.

    `(b) Consequences for Failed Validation- If a C-TPAT participant's security measures and supply chain security practices fail to meet the validation requirements under this section, the Commissioner of U.S. Customs and Border Protection may--

      `(1) deny the participant benefits under C-TPAT on a temporary or permanent basis; or

      `(2) suspend or expel the participant from C-TPAT.

    `(c) Right of Appeal- A C-TPAT participant described in subsection (b) may file an appeal with the Secretary of the Commissioner's decision under subsection (b)(1) to deny benefits under C-TPAT or under subsection (b)(2) to suspend or expel the participant from C-TPAT.

    `(d) Benefits- The Secretary shall extend benefits to each C-TPAT participant that has been validated under this section, which may include--

      `(1) reduced examinations; and

      `(2) priority processing for searches.

`SEC. 1816. TIER THREE PARTICIPANTS.

    `(a) In General- The Secretary shall establish a third tier of C-TPAT that offers additional benefits to C-TPAT participants that demonstrate a sustained commitment beyond the minimum criteria for participation in C-TPAT.

    `(b) Additional Criteria- The Secretary shall designate criteria for C-TPAT participants under this section that may include criteria to ensure--

      `(1) cargo is loaded on a vessel with a vessel security plan approved under section 70103(c) of title 46, United States Code, or on a vessel with a valid International Ship Security Certificate as provided for under part 104 of title 33, Code of Federal Regulations;

      `(2) container security devices, policies, or practices that exceed the standards and procedures established by the Secretary are utilized; and

      `(3) cargo complies with any other requirements determined by the Secretary.

    `(c) Benefits- The Secretary, in consultation with the Commercial Operations Advisory Committee and the National Maritime Security Advisory Committee, may provide benefits to C-TPAT participants under this section, which may include--

      `(1) the expedited release of tier three cargo into destination ports within the United States during all threat levels designated by the Secretary;

      `(2) reduced or streamlined bonding requirements that are consistent with obligations under other applicable provisions of law;

      `(3) preference to vessels;

      `(4) further reduced examinations;

      `(5) priority processing for examinations;

      `(6) further reduced scores in the Automated Targeting System; and

      `(7) streamlined billing of any customs duties or fees.

    `(d) Definition- In this section, the term `container security device' means a mechanical or electronic device designed to, at a minimum, positively identify containers and detect and record unauthorized intrusion of containers. Such devices shall have false alarm rates that have been demonstrated to be below one percent.

`SEC. 1817. CONSEQUENCES FOR LACK OF COMPLIANCE.

    `(a) In General- If a C-TPAT participant's security measures and supply chain security practices fail to meet any of the requirements under this subtitle, the Secretary may deny the participant benefits in whole or in part under this subtitle.

    `(b) False or Misleading Information- If a C-TPAT participant intentionally provides false or misleading information to the Secretary or a third party entity during the validation process of the participant under this subtitle, the Commissioner of U.S. Customs and Border Protection shall suspend or expel the participant from C-TPAT for a period of not less than five years.

    `(c) Right of Appeal- A C-TPAT participant described in subsection (a) may file an appeal with the Secretary of the Secretary's decision under subsection (a) to deny benefits under this subtitle. A C-TPAT participant described in subsection (b) may file an appeal with the Secretary of the Commissioner's decision under subsection (b) to suspend or expel the participant from C-TPAT.

`SEC. 1818. VALIDATIONS BY THIRD PARTY ENTITIES.

    `(a) In General- In conducting the pilot program under subsection (f), and if the Secretary determines to expand the use of third party entities to conduct validations of C-TPAT participants upon completion of the pilot program under subsection (f), the Secretary shall--

      `(1) develop, document, and update, as necessary, minimum standard operating procedures and requirements applicable to such entities for the conduct of such validations; and

      `(2) meet all requirements under subtitle G of the title VIII of this Act to review and designate such minimum standard operating procedures as a qualified anti-terrorism technology for purposes of such subtitle.

    `(b) Certification of Third Party Entities-

      `(1) ISSUANCE OF CERTIFICATE OF CONFORMANCE- In accordance with section 863(d)(3) of this Act, the Secretary shall issue a certificate of conformance to a third party entity to conduct validations under this subtitle if the entity--

        `(A) demonstrates to the satisfaction of the Secretary the ability to perform validations in accordance with standard operating procedures and requirements (or updates thereto) designated as a qualified anti-terrorism technology by the Secretary under subsection (a); and

        `(B) agrees--

          `(I) to perform validations in accordance with such standard operating procedures and requirements (or updates thereto); and

          `(ii) to maintain liability insurance coverage at policy limits and in accordance with conditions to be established by the Secretary pursuant to section 864 of this Act; and

        `(C) signs an agreement to protect all proprietary information of C-TPAT participants with respect to which the entity will conduct validations.

      `(2) LITIGATION AND RISK MANAGEMENT PROTECTIONS- A third party entity that maintains liability insurance coverage at policy limits and in accordance with conditions to be established by the Secretary pursuant to section 864 of this Act and receives a certificate of conformance under paragraph (1) shall receive all applicable litigation and risk management protections under sections 863 and 864 of this Act.

      `(3) RECIPROCAL WAIVER OF CLAIMS- A reciprocal waiver of claims shall be deemed to have been entered into between a third party entity that receives a certificate of conformance under paragraph (1) and its contractors, subcontractors, suppliers, vendors, customers, and contractors and subcontractors of customers involved in the use or operation of the validation services of the third party entity.

    `(c) Information for Establishing Limits of Liability Insurance- A third party entity seeking a certificate of conformance under subsection (b)(1) shall provide to the Secretary necessary information for establishing the limits of liability insurance required to be maintained by the entity under section 864(a) of this Act.

    `(d) Additional Requirements- The Secretary shall ensure that--

      `(1) any third party entity under this section--

        `(A) has no beneficial interest in or any direct or indirect control over the C-TPAT participant that is contracting for the validation services; and

        `(B) has no other conflict of interest with respect to the C-TPAT participant; and

      `(2) the C-TPAT participant has entered into a contract with the third party entity under which the C-TPAT participant agrees to pay all costs associated with the validation.

    `(e) Monitoring-

      `(1) IN GENERAL- The Secretary shall regularly monitor and inspect the operations of a third party entity conducting validations under this subtitle to ensure that the entity is meeting the minimum standard operating procedures and requirements for the validation of C-TPAT participants established under subsection (a) and all other applicable requirements for validation services under this subtitle.

      `(2) REVOCATION- If the Secretary finds that a third party entity is not meeting the minimum standard operating procedures and requirements, the Secretary shall--

        `(A) revoke the entity's certificate of conformance issued under subsection (b)(1); and

        `(B) review any validations conducted by the entity.

    `(f) Pilot Program-

      `(1) IN GENERAL- The Secretary shall carry out a pilot program to test the feasibility, costs, and benefits of utilizing third party entities to conduct validations of C-TPAT participants. In conducting the pilot program, the Secretary shall comply with all applicable requirements of this section with respect to eligibility of third party entities to conduct validations of C-TPAT participants.

      `(2) REPORT- Not later than 30 days after the completion of the pilot program conducted pursuant to paragraph (1), the Secretary shall submit to the appropriate congressional committees a report that contains--

        `(A) the results of the pilot program; and

        `(B) the determination of the Secretary whether or not to expand the use of third party entities to conduct validations of C-TPAT participants.

`SEC. 1819. REVALIDATION.

    `The Secretary shall establish a process for revalidating C-TPAT participants under this subtitle. Such revalidation 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 participation 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 EVALUATION EFFORTS IN FURTHERANCE OF MARITIME AND CARGO SECURITY.

    `(a) In General- The Secretary shall--

      `(1) direct research, development, test, and evaluation efforts in furtherance of maritime and cargo security;

      `(2) encourage the ingenuity of the private sector in developing and testing technologies and process innovations in furtherance of these objectives; and

      `(3) evaluate such technologies.

    `(b) Coordination- The Secretary, in coordination with the Undersecretary for Science and Technology, the Director of the Domestic Nuclear Detection Office of the Department, and the heads of other appropriate offices 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 automatic identification methods for containers, vessels, 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 intermodal transfer point to the National Targeting Center of the Department; and

      `(4) otherwise further maritime and cargo security, as determined by the Secretary.

    `(b) Supply Chain Security for Special Container 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 containers, 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 Secretary shall select recipients of grants under subsection (a) through a competitive process on the basis of the following criteria:

      `(1) The extent to which the applicant can demonstrate that personnel, laboratory, and organizational resources will be available to the applicant to carry out the activities authorized under this section.

      `(2) The applicant's capability to provide leadership in making national and regional contributions to the solution of maritime and cargo security issues.

      `(3) The extent to which the applicant's programs, 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 determines to be appropriate.

    `(d) Administrative Provisions-

      `(1) PROHIBITION ON DUPLICATION OF EFFORT- Before providing any grant under subsection (a), the Secretary shall coordinate with other Federal departments and agencies to ensure the grant will not duplicate work already being carried out with Federal funding.

      `(2) ACCOUNTING, REPORTING, AND REVIEW PROCEDURES- The Secretary shall establish accounting, 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 related 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 provided under subsection (a) to ensure that obligations and expenditures of such amounts are consistent 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 `Operation 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 security procedures for cargo and develop new security protocols that have the potential to increase the security of cargo shipments by monitoring the movement and integrity 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 Secretary submits to the appropriate congressional committees a report on the implementation and results of grants provided under Operation Safe Commerce 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 material 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 radiation screening of a conveyance using non-intrusive inspection (NII) technology, for the presence of contraband.

      `(3) INSPECTION- The term `inspection' means the comprehensive process used by U.S. Customs and Border Protection for assessing goods entering the United States to appraise them for duty purposes, to detect the presence of restricted or prohibited items, and to ensure compliance with all applicable laws. 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-end process for shipping goods from a point of origin overseas to and from the United States.

      `(5) NUCLEAR AND RADIOLOGICAL DETECTION SYSTEM- The term `nuclear and radiological detection system' means any technology that is capable of detecting or identifying nuclear and radiological material 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 intrusive examination in which a container is opened and its contents are de-vanned and visually inspected 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.

      `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 added by subsection (a), not later than 180 days after the date of the enactment of this Act;

      (4) develop the standards and verification procedures described in section 1804(a)(1) 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;

      (5) begin exercising authority to issue a `do not load' order to each port designated under CSI pursuant 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 interchange system under section 1806(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;

      (7) update guidelines for certifying a C-TPAT participant's security measures and supply chain security practices under section 1814(b) 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;

      (8) develop a schedule and update guidelines for validating a C-TPAT participant's security measures and supply chain security practices under section 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 Security 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 approach to screening, scanning, and inspecting cargo at foreign ports bound for the United States in accordance with existing statutory provisions, the Secretary of Homeland Security shall evaluate the development of nuclear and radiological detection systems and other inspection technologies 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 devices that can be inexpensively mass produced.

    (b) Emerging Technology- Not later than one year after the date of the enactment of this Act, the Secretary 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 questionable or high-risk cargo as a trigger for further inspection by appropriately trained personnel.

    (c) Contingent Implementation- If the Secretary determines the available technology meets the criteria outlined in subsection (b), the Secretary, in cooperation 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 Secretary 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 accept containerized cargo from that port.

    (e) Report- The Secretary shall submit to the appropriate congressional committees on an annual basis a report on the evaluation performed under subsections (a) and (b), the status of any implementation initiated in accordance 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 radiological material or explosive devices.

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 information, 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 President shall consult with private sector stakeholders in developing uniform data submission requirements, procedures, and schedules under the system established pursuant 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 established pursuant to subsection (a).

    (d) Rule of Construction- Nothing in this section 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:

    `(d) Periodic Reassessment- The Secretary, acting through the Commandant of the Coast Guard, shall reassess the effectiveness of antiterrorism measures maintained at ports as described 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 Security 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 visual searches of empty containers at United States seaports.

    (b) Report- Not later than 90 days after the completion of the pilot program under paragraph (1), the Secretary shall prepare and submit to the appropriate congressional committees a report that contains--

      (1) the results of pilot program; and

      (2) the determination of the Secretary whether or not to expand the pilot program.

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 scanning 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 programs 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 generated from the pilot programs;

        (C) a summary of best practices and technological advances of the pilot programs that could be integrated into the Container Security Initiative and other container security programs; and

        (D) an assessment of the impact of technology or processes utilized in the pilot programs on improving cargo operations and security.

    (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 subsection (a); and

      (2) recommendations to improve container security 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. Customs 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--

      (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 enactment 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:

`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 Department a Directorate for Policy, Planning, and International Affairs.

    `(b) Under Secretary for Policy-

      `(1) IN GENERAL- The head of the Directorate 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 paragraph (1) unless the individual has, by education and experience, demonstrated knowledge, ability, and skill in the fields of policy and strategic planning.

    `(c) Responsibilities of Under Secretary-

      `(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 advisor to the Secretary.

        `(B) To provide overall direction and supervision of policy development for the programs, offices, and activities of the Department.

        `(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 responsibilities of the Department and with the Secretary's priorities, strategic plans, and policies.

        `(E) To ensure that the budget of the Department (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 responsibilities of the Department and with the Secretary's priorities, strategic plans, and policies.

        `(F) To represent the Department in any development of policy that requires the Department to consult with another Federal agency, the Office of the President, a foreign government, or any other governmental or private sector entity.

        `(G) To supervise and oversee policy development 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 RESPONSIBILITIES- 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.

      `(3) INTERNATIONAL RESPONSIBILITIES- Subject 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 information and the sharing of best practices and technology relating to homeland security with nations friendly to the United States, including--

          `(i) the exchange of information on research and development on homeland security technologies;

          `(ii) joint training exercises of first responders in coordination with the Assistant Secretary for Grants and Training; and

          `(iii) exchanging expertise and information on terrorism prevention, response, and crisis management.

        `(B) To identify any homeland security-related area in which the United States and other nations and appropriate international organizations could collaborate to improve capabilities and to encourage the exchange of information or sharing of best practices and technology relating to that area.

        `(C) To plan and participate in international conferences, exchange programs (including 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 Department 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 communications with the private sector to enhance the primary mission of the Department to protect the United States.

        `(B) To advise the Secretary on the impact on the private sector of the policies, regulations, processes, and actions of the Department.

        `(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 challenges; and

          `(ii) to advise the Secretary on homeland security policies, regulations, processes, and actions that affect the participating 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 respond to acts of terrorism.

        `(F) To coordinate among the Department's operating entities and with the Assistant Secretary for Trade Development of the Department of Commerce on issues related to the travel and tourism industries.

      `(5) TRADE AND CUSTOMS REVENUE FUNCTIONS- The Under Secretary for Policy shall--

        `(A) ensure that the trade and customs revenue functions of the Department are coordinated within the Department and with other Federal departments and agencies, and that the impact on legitimate trade is taken into account in any action impacting 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 Department are not diminished, including how spending, operations, and personnel related to these functions have kept pace with the level of trade entering the United States.

`SEC. 602. OFFICE OF INTERNATIONAL AFFAIRS.

    `(a) Establishment- There is established within the Directorate of Policy, Planning, and International Affairs an Office of International Affairs. The Office shall be headed by an Assistant Secretary, who shall be appointed by the Secretary.

    `(b) Duties of the Assistant Secretary- The Assistant Secretary shall have the following duties:

      `(1) To promote information and education exchange with nations friendly to the United States in order to promote sharing of best practices and technologies relating to homeland security. Such exchange shall include the following:

        `(A) Exchange of information on research and development on homeland security technologies.

        `(B) Joint training exercises of first responders.

        `(C) Exchange of expertise on terrorism prevention, response, and crisis management.

      `(2) To identify areas for homeland security information and training exchange where the United States has a demonstrated weakness and another friendly nation or nations have a demonstrated expertise.

      `(3) To plan and undertake international conferences, 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.

`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 administered by an Assistant Secretary for Policy.

      `(2) The Office of Strategic Plans, which shall be administered by an Assistant Secretary for Strategic Plans and which shall include--

        `(A) a Secure Border Initiative Program Office; and

        `(B) a Screening Coordination and Operations 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 Directorate for Policy, Planning, and International Affairs a Director of Cargo Security 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 programs relating to cargo security;

        `(B) develop Department-wide policies regarding 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 Energy and the Department of State, as appropriate, in negotiating international agreements relating to cargo security.

    `(c) Director of Trade Policy-

      `(1) IN GENERAL- There shall be in the Directorate for Policy, Planning, and International Affairs 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 programs relating to the trade and customs revenue functions of the Department;

        `(B) develop Department-wide policies regarding trade and customs revenue functions and trade facilitation; and

        `(C) coordinate the trade and customs revenue-related programs of the Department with other Federal departments and agencies.

`SEC. 604. CONSULTATION ON TRADE AND CUSTOMS REVENUE FUNCTIONS.

    `(a) In General- The Secretary and the Under Secretary for Policy shall consult with representatives of the business community involved in international trade, including 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 functions.

    `(b) COAC Consultation and Notification-

      `(1) IN GENERAL- Subject to paragraph (2), the Secretary shall seek the advice and recommendations of COAC on any proposed Department policies, initiatives, actions, or organizational reforms that will have a major impact on trade and customs revenue functions not later than 45 days prior to the finalization of the policies, initiatives, actions, or organizational reforms.

      `(2) EXCEPTION- If the Secretary determines that it is important to the national security interest of the United States to finalize any proposed Department policies, initiatives, actions, or organizational 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 recommendations of COAC.

    `(c) Congressional Consultation and Notification-

      `(1) IN GENERAL- Subject to paragraph (2), the Secretary shall consult with and provide any recommendations of COAC received under subsection (b) to the appropriate congressional committees not later than 30 days prior to the finalization of any Department policies, initiatives, actions or organizational 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 reforms prior to the consultation described in paragraph (1), the Secretary shall--

        `(A) consult with and provide any recommendations of COAC received under subsection (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 repealed.

    (c) Clerical Amendments- The table of contents in section 1(b) of such Act is amended--

      (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 revenue functions carried out by the former U.S. Customs Service have been consolidated with other functions of the Department (including the assignment of non-customs revenue functions to personnel responsible for customs revenue collection), discontinued, or diminished following the transfer of the U.S. Customs Service to the Department;

        (B) the extent to which staffing levels or resources attributable to customs revenue functions have decreased since the transfer of the 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 report on the results of study conducted under subsection (a).

    (c) Definition- In this section, the term `customs revenue functions' means the functions described in section 412(b)(2) of the Homeland Security Act of 2002 (6 U.S.C. 212(b)(2)).

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 DOMESTIC NUCLEAR DETECTION

`SEC. 2001. DOMESTIC NUCLEAR DETECTION OFFICE.

    `(a) In General- There shall be in the Department of Homeland Security a Domestic Nuclear Detection Office.

    `(b) Purpose- The purpose of the Office shall be to protect against the unauthorized importation, possession, storage, transportation, development, or use of a nuclear explosive device, fissile material, or radiological material against the United States.

    `(c) Director- The Office shall be headed by a Director of Domestic Nuclear Detection, who shall be appointed by the President from among individuals nominated 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 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 activities 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, personnel, assets, and liabilities of all Department programs and projects relating to nuclear and radiological detection research, development, testing, and evaluation, and nuclear and radiological detection system acquisition and deployment, including with respect to functions and assets transferred by section 303(1)(B), (C), and (E) and functions, assets, and personnel transferred pursuant to section 2010(c).

`SEC. 2003. GLOBAL NUCLEAR DETECTION ARCHITECTURE.

    `(a) In General- The Director shall coordinate the Federal Government's implementation of a global nuclear detection architecture.

    `(b) Functions of Director- The Director shall, under subsection (a)--

      `(1) design a strategy that will guide deployment of the global nuclear detection architecture;

      `(2) implement Department components of the strategy in the United States; and

      `(3) coordinate Department and Federal interagency 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 section 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.

`SEC. 2004. RESEARCH AND DEVELOPMENT.

    `(a) In General- The Director shall carry out a research and development program to achieve transformational and evolutionary improvements in detection capabilities for shielded and unshielded nuclear explosive devices and radiological dispersion devices.

    `(b) High-Risk Projects- The program shall include funding for transformational research and development projects that may have a high risk of failure but have the potential to provide significant benefits.

    `(c) Long-Term Projects- In order to reflect a long-term commitment to the development of more effective detection technologies, the program shall include the provision of funding for projects having a duration of more than 3 years, as appropriate.

    `(d) Coordination With Other Federal Programs- The Director shall coordinate implementation of the program with other Federal agencies performing similar research and development in order to accelerate the development of effective technologies, promote technology sharing, and to avoid duplication, including through the use of the interagency coordination council established under section 2013.

`SEC. 2005. SYSTEM ASSESSMENTS.

    `(a) In General- The Director shall carry out a program to test and evaluate technology for detecting nuclear explosive devices and fissile or radiological material.

    `(b) Performance Metrics- The Director shall establish performance metrics for evaluating the effectiveness of individual detectors and detection systems in detecting nuclear explosive devices or fissile or radiological material--

      `(1) under realistic operational and environmental conditions; and

      `(2) against realistic adversary tactics and countermeasures.

    `(c) Provision of Testing Services-

      `(1) IN GENERAL- The Director may, under the program, make available testing services to developers of detection technologies. The results of the tests performed with services made available under this subsection shall be confidential and may not be disclosed to individuals or entities outside of the Federal Government without the consent of the developer for whom the tests are performed.

      `(2) FEES- The Director may charge fees, as appropriate, for performance of services under this subsection.

    `(d) System Assessments-

      `(1) IN GENERAL- The Director shall periodically perform system-wide assessments of the global nuclear detection architecture to identify vulnerabilities and to gauge overall system performance against nuclear and radiological threats.

      `(2) INCLUDED ACTIVITIES- The assessments shall include--

        `(A) red teaming activities to identify vulnerabilities and possible modes of attack and concealment methods; and

        `(B) net assessments to determine architecture performance against adversary tactics and concealment methods.

      `(3) USE- The Director shall use the assessments to guide deployment of the global nuclear detection architecture and the research and development activities of the Office.

`SEC. 2006. TECHNOLOGY ACQUISITION, DEPLOYMENT, SUPPORT, AND TRAINING.

    `(a) Acquisition Strategy-

      `(1) IN GENERAL- The Director shall develop and, subject to the availability of appropriations, execute a strategy for the acquisition and deployment of detection systems in order to implement the Department components of the global nuclear detection architecture developed under section 2003.

      `(2) USE OF AVAILABLE CONTRACTING PROCEDURES- The Director shall make use of all contracting procedures available to the Secretary to implement the acquisition strategy.

      `(3) DETERMINATION OF QUALIFIED ANTI-TERRORISM TECHNOLOGY- The Director shall make recommendations based on the criteria included in section 862(b) as to whether the detection systems acquired pursuant to this subsection shall be designated by the Secretary as anti-terrorism technologies that qualify for protection under the system of risk management set forth in subtitle G of title VIII. The Undersecretary for Science and Technology shall consider the Director's recommendations and expedite the process of determining whether such detection systems shall be designated as anti-terrorism technologies that qualify for such protection.

    `(b) Deployment- The Director shall deploy detection systems for use by Department operational units and other end-users in implementing the global nuclear detection architecture.

    `(c) Operational Support and Protocols-

      `(1) OPERATIONAL SUPPORT- The Director shall provide operational support for all systems acquired to implement the acquisition strategy developed under subsection (a).

      `(2) OPERATIONAL PROTOCOLS- The Director shall develop operational protocols for detection technology acquired and deployed to implement the acquisition strategy, including procedures for alarm resolution and notification of appropriate response agencies in the event that illicit nuclear, radioactive, or fissile materials are detected by such a product or service.

      `(3) TECHNICAL REACHBACK- The Director will ensure that the expertise necessary to accurately interpret detection data is made available in a timely manner for all technology deployed to implement the global nuclear detection architecture.

    `(d) Training- The Director shall develop and distribute training materials and provide training to all end-users of technology acquired by the Director under the acquisition strategy.

    `(e) Solicitation of End-User Input- In developing requirements for the research and development program of section 2004 and requirements for the acquisition of detection systems to implement the strategy in subsection (a), the Director shall solicit input from end-users of such systems.

    `(f) State and Local Support- Upon request, the Director shall provide guidance regarding radiation detection technology acquisitions to be made by State, territorial, tribal and local governments and emergency response providers.

`SEC. 2007. SITUATIONAL AWARENESS.

    `(a) Detection Information- The Director--

      `(1) shall continuously monitor detection information received from foreign and domestic detection systems to maintain for the Department a situational awareness of all nuclear threats;

      `(2) shall gather and archive--

        `(A) detection data measurements taken of benign activities in the normal flows of commerce; and

        `(B) alarm data, including false alarms and nuisance alarms.

    `(b) Information Sharing- The Director shall coordinate with other governmental agencies to ensure that the detection of unauthorized nuclear explosive devices, fissile material, or radiological material is promptly reported to all appropriate Federal response agencies including the Attorney General, the Director of the Federal Bureau of Investigation, the Secretary of Defense, and the Secretary of Energy.

    `(c) Incident Resolution- The Director shall assess nuclear threats communicated by Federal, State, tribal, or local officials and provide adequate technical reachback capability for swift and effective incident resolution.

    `(d) Security- The Director shall--

      `(1) develop and implement security standards and protocols for the control and protection of all classified or sensitive information in possession of the Office; and

      `(2) ensure that relevant personnel of the Office have the required security clearances to properly handle such information.

`SEC. 2008. FORENSIC ANALYSIS.

    `The Director shall perform all research, development, and acquisition activities of the Department pertaining to forensic analysis and attribution of nuclear and radiological attacks.

`SEC. 2009. THREAT INFORMATION.

    `(a) Threat Assessments- The Director shall utilize classified and unclassified nuclear and radiological threat assessments in designing the global nuclear detection architecture under section 2003, prioritizing detection system deployments, and testing and optimizing system performance of that architecture, including assessments of--

      `(1) smuggling routes;

      `(2) locations of relevant nuclear and radiological material throughout the world;

      `(3) relevant terrorist tradecraft and concealment methods;

      `(4) relevant nuclear and radiological threat objects in terms of possible detection signatures.

    `(b) Access to Information- The Secretary shall provide the Director access to all information relating to nuclear and radiological threats, including reports, assessments, analyses, and unevaluated intelligence, that is necessary to successfully design, deploy, and support the operation of an effective global detection architecture under section 1903.

    `(c) Analytical Support- The Director shall request that the Secretary provide to the Director, pursuant to section 201(d)(18), the requisite intelligence and information analysis support necessary to effectively discharge the Director's responsibilities.

    `(d) Analytical Expertise- For the purposes of performing any of the assessments required under subsection (a), the Director, subject to the availability of appropriations, may hire professional personnel who are analysts with experience in performing nuclear and radiological threat assessments.

    `(e) Collection Requests- The Director shall recommend to the Secretary consultation that should occur pursuant to section 201(d)(10) regarding intelligence collection to design, deploy, and support the operation of the global detection architecture under section 2003.

`SEC. 2010. ADMINISTRATIVE AUTHORITIES.

    `(a) Hiring- In hiring personnel for the Office, the Secretary shall have hiring and management authorities described in section 1101 of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 (5 U.S.C. 3104 note; Public Law 105-261). The term of appointments for employees under subsection (c)(1) of that section may not exceed 5 years before granting any extension under subsection (c)(2) of that section.

    `(b) Detail of Personnel- In order to assist the Director in discharging the Director's responsibilities, personnel of other Federal agencies may be detailed to the Office for the performance of analytic functions and related duties.

    `(c) Transfer of Science and Technology Functions, Personnel, and Assets-

      `(1) TRANSFER REQUIRED- Except as provided in paragraph (2), the Secretary shall transfer to the Director the functions, assets, and personnel of the Department relating to radiological and nuclear countermeasures, including forensics of contaminated evidence and attack attribution.

      `(2) EXCEPTIONS- The Secretary shall not transfer under paragraph (1) functions, assets, and personnel relating to consequence management and recovery.

      `(3) ELIMINATION OF DUPLICATION OF EFFORT- The Secretary shall ensure that to the extent there are complementary functions vested in the Directorate of Science and Technology and the Office with respect to radiological and nuclear countermeasures, the Under Secretary for Science and Technology and the Director coordinate the programs they administer to eliminate duplication and increase integration opportunities, particularly with respect to technology development and test and evaluation.

`SEC. 2011. REPORT REQUIREMENT.

    `The Director shall submit to the appropriate congressional committees an annual report on the following:

      `(1) The global detection strategy developed under section 2003.

      `(2) The status of implementation of such architecture.

      `(3) The schedule for future detection system deployments under such architecture.

      `(4) The research and development program of the Office.

      `(5) A summary of actions taken by the Office during the reporting period to counter nuclear and radiological threats.

`SEC. 2012. ADVISORY COUNCIL ON NUCLEAR DETECTION.

    `(a) Establishment- Pursuant to section 871 of this Act, the Secretary shall establish within the Office an Advisory Council on Nuclear Detection, which shall report to the Director (in this section referred to as the `Advisory Council').

    `(b) Functions- The Advisory Council shall, at the request of the Director--

      `(1) advise the Director on recommendations for the global nuclear detection architecture developed under section 2003(a);

      `(2) identify research areas for development of next-generation and transformational nuclear and radiological detection technologies; and

      `(3) and have such additional responsibilities as the Director may assign in furtherance of the Department's homeland security mission with respect to enhancing domestic and international nuclear and radiological detection capabilities.

    `(c) Membership- The Advisory Council shall consist of 5 members appointed by the Director, who shall--

      `(1) be individuals who have an eminent knowledge and technical expertise related to nuclear and radiological detection research and development and radiation detection;

      `(2) be selected solely on the basis of their established record of distinguished service; and

      `(3) not be employees of the Federal Government, other than employees of National Laboratories.

    `(d) Conflict of Interest Rules- The Advisory Council shall establish rules for determining when one of its members has a conflict of interest in a matter being considered by the Advisory Council, and the appropriate course of action to address such conflicts of interest.

`SEC. 2013. INTERAGENCY COORDINATION COUNCIL.

    `The President--

      `(1) shall establish an interagency coordination council to facilitate interagency cooperation for purposes of implementing this title;

      `(2) shall appoint the Secretary to chair the interagency coordination council; and

      `(3) may appoint the Attorney General, the Secretary of Energy, the Secretary of State, the Secretary of Defense, and the heads of other appropriate Federal agencies to designate members to serve on such council.

`SEC. 2014. AUTHORIZATION OF APPROPRIATIONS.

    `There is authorized to be appropriated to carry out this title--

      `(1) $536,000,000 for fiscal year 2007; and

      `(2) such sums as may be necessary for each subsequent fiscal year.

`SEC. 2015. DEFINITIONS.

    `In this title:

      `(1) The term `Director' means the Director of the Domestic Nuclear Detection Office.

      `(2) The term `fissile materials' means materials capable of sustaining a nuclear chain reaction.

      `(3) The term `global nuclear detection architecture' means a multi-layered system of detectors deployed internationally and domestically to detect and interdict nuclear and radiological materials intended for illicit use.

      `(4) The term `nuclear and radiological detection system' means any technology that is capable of detecting or identifying nuclear and radiological material or explosive devices.

      `(5) The term `Office' means the Domestic Nuclear Detection Office.

      `(6) The term `radiological material' means material that emits nuclear radiation.

      `(7) The term `nuclear explosive device' means an explosive device capable of producing a nuclear yield.

      `(8) The term `technical reachback' means technical expert support provided to operational end users for data interpretation and alarm resolution.

      `(9) The term `transformational' means that, if successful, will produce dramatic technological improvements over existing capabilities in the areas of performance, cost, or ease of use.'.

    (b) Conforming Amendments-

      (1) Section 103(d) of the Homeland Security Act of 2002 (6 U.S.C. 113(d)) is amended by adding at the end the following:

      `(5) A Director of the Domestic Nuclear Detection Office.'.

      (2) Section 302 of such Act (6 U.S.C. 182) is amended--

        (A) in paragraph (2) by striking `radiological, nuclear,'; and

        (B) in paragraph (5)(A) by striking `radiological, nuclear,'.

      (3) Section 305 of such Act (6 U.S.C. 185) is amended by inserting `and the Director of the Domestic Nuclear Detection Office' after `Technology'.

      (4) Section 308 of such Act (6 U.S.C. 188) is amended in each of subsections (a) and (b)(1) by inserting `and the Director of the Domestic Nuclear Detection Office' after `Technology'.

    (c) 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 XX--OFFICE OF DOMESTIC NUCLEAR DETECTION

      `Sec. 2001. Domestic Nuclear Detection Office.

      `Sec. 2002. Functions of Director of the Domestic Nuclear Detection Office, generally.

      `Sec. 2003. Global nuclear detection architecture.

      `Sec. 2004. Research and development.

      `Sec. 2005. System assessments.

      `Sec. 2006. Technology acquisition, deployment, support, and training.

      `Sec. 2007. Situational awareness.

      `Sec. 2008. Forensic analysis.

      `Sec. 2009. Threat information.

      `Sec. 2010. Administrative authorities.

      `Sec. 2011. Report requirement.

      `Sec. 2012. Advisory Council on Nuclear Detection.

      `Sec. 2013. Interagency coordination council.

      `Sec. 2014. Authorization of appropriations.

      `Sec. 2015. Definitions.'.

SEC. 402. NUCLEAR AND RADIOLOGICAL DETECTION SYSTEMS.

    (a) Deployment- Not later than September 30, 2007, the Secretary of Homeland Security shall deploy nuclear and radiological detection systems at 22 United States seaports. To the extent feasible, the Secretary shall deploy the next-generation radiation portal monitors tested in the pilot program under subsection (d) at such United States seaports.

    (b) Strategy- Not later than 90 days after the date of the enactment of this Act, the Secretary, acting through the Director of the Domestic Nuclear Detection Office of the Department, shall submit to the appropriate congressional committees a strategy for the deployment of nuclear and radiological detection systems at all remaining United States seaports.

    (c) Contents- The strategy submitted under subsection (b) shall include--

      (1) a risk-based prioritization of United States seaports at which nuclear and radiological detection systems will deployed;

      (2) a proposed timeline of when nuclear and radiological detection systems will be deployed at each of the seaports identified under paragraph (1);

      (3) the type of systems to be used at each of the seaports identified under paragraph (1);

      (4) standard operating procedures for examining containers with such systems;

      (5) the Department policy for using nuclear and radiological detection systems;

      (6) a classified annex that details plans for covert testing; and

      (7) a classified annex that outlines the risk-based prioritization of seaports used under paragraph (1).

    (d) Safety Plan- Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit to the appropriate congressional committees a plan that--

      (1) details the health and safety impacts of nuclear and radiological detection systems; and

      (2) describes the policy of U.S. Customs and Border Protection for using nuclear and radiological detection systems.

    (e) Pilot Program-

      (1) IN GENERAL- Not later than January 1, 2007, the Secretary, acting through the Director of the Domestic Nuclear Detection Office of the Department, shall initiate a pilot program to deploy and test the operational performance of next-generation radiation portal monitors at one or more United States seaports with a high-volume of containerized cargo.

      (2) REPORT- Not later than March 31, 2007, the Secretary shall submit to the appropriate congressional committees a report that contains--

        (A) a description of the next-generation radiation portal monitors deployed at United States seaports under the pilot program;

        (B) a description of the operational characteristics of the pilot program at selected United States seaports; and

        (C) an evaluation of the operational performance of the next-generation radiation portal monitors, including nuisance alarm rates, and a description of the standards used in such evaluation.

    (f) Deployment of Next-Generation Radiation Portal Monitors-

      (1) IN GENERAL- If the Secretary, acting through the Director of the Domestic Nuclear Detection Office of the Department, determines that the operational performance of the next-generation radiation portal monitors under the pilot program carried out under subsection (e) has met the standards described subsection (e)(2)(C), the Secretary shall deploy next-generation radiation portal monitors, in fixed or other configurations, at all United States seaports with a high-volume of containerized cargo to improve cargo screening capabilities at such seaports not later than September 30, 2007.

      (2) CONGRESSIONAL NOTIFICATION- If any deployment of next-generation radiation portal monitors is deemed by the Secretary to be operationally infeasible or would result in ineffective, inefficient, or otherwise wasteful use of resources, the Secretary shall notify the appropriate congressional committees and recommend alternative actions.

    (g) Enhancing Overseas Detection Capabilities- The Secretary, acting through the Director of the Domestic Nuclear Detection Office of the Department, shall work with appropriate Federal departments and agencies to coordinate the installation of nuclear and radiological detection systems at foreign seaports.

    (h) Definitions- In this section:

      (1) NEXT-GENERATION RADIATION PORTAL MONITORS- The term `next-generation radiation portal monitors' means non-intrusive, containerized cargo examination technologies that possess radionuclide isotope identification capabilities.

      (2) NUCLEAR AND RADIOLOGICAL DETECTION SYSTEM- The term `nuclear and radiological detection system' means any technology that is capable of detecting or identifying nuclear and radiological material or explosive devices.

Passed the House of Representatives May 4, 2006.

Attest:

Clerk.