Text: H.R.4954 — 109th Congress (2005-2006)All Bill Information (Except Text)

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Public Law No: 109-347 (10/13/2006)




[109th Congress Public Law 347]
[From the U.S. Government Printing Office]


[DOCID: f:publ347.109]

[[Page 1883]]

         SECURITY AND ACCOUNTABILITY FOR EVERY PORT ACT OF 2006

[[Page 120 STAT. 1884]]

Public Law 109-347
109th Congress

                                 An Act


 
    To improve maritime and cargo security through enhanced layered 
    defenses, and for other purposes. <<NOTE: Oct. 13, 2006 -  [H.R. 
                                4954]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Security and 
Accountability For Every Port Act of 2006. 6 USC 901 note.>> 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Security and 
Accountability For Every Port Act of 2006'' or the ``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. Definitions.

               TITLE I--SECURITY OF UNITED STATES SEAPORTS

                     Subtitle A--General Provisions

Sec. 101. Area Maritime Transportation Security Plan to include salvage 
           response plan.
Sec. 102. Requirements relating to maritime facility security plans.
Sec. 103. Unannounced inspections of maritime facilities.
Sec. 104. Transportation security card.
Sec. 105. Study to identify redundant background records checks.
Sec. 106. Prohibition of issuance of transportation security cards to 
           persons convicted of certain felonies.
Sec. 107. Long-range vessel tracking.
Sec. 108. Establishment of interagency operational centers for port 
           security.
Sec. 109. Notice of arrival for foreign vessels on the Outer Continental 
           Shelf.
Sec. 110. Enhanced crewmember identification.

    Subtitle B--Port Security Grants; Training and Exercise Programs

Sec. 111. Risk assessment tool.
Sec. 112. Port security grants.
Sec. 113. Port Security Training Program.
Sec. 114. Port Security Exercise Program.
Sec. 115. Facility exercise requirements.

                       Subtitle C--Port Operations

Sec. 121. Domestic radiation detection and imaging.
Sec. 122. Inspection of car ferries entering from abroad.
Sec. 123. Random searches of containers.
Sec. 124. Work stoppages and employee-employer disputes.
Sec. 125. Threat assessment screening of port truck drivers.
Sec. 126. Border Patrol unit for United States Virgin Islands.
Sec. 127. Report on arrival and departure manifests for certain 
           commercial vessels in the United States Virgin Islands.
Sec. 128. Center of Excellence for Maritime Domain Awareness.

          TITLE II--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN

                     Subtitle A--General Provisions

Sec. 201. Strategic plan to enhance the security of the international 
           supply chain.

[[Page 120 STAT. 1885]]

Sec. 202. Post-incident resumption of trade.
Sec. 203. Automated Targeting System.
Sec. 204. Container security standards and procedures.
Sec. 205. Container Security Initiative.

         Subtitle B--Customs-Trade Partnership Against Terrorism

Sec. 211. Establishment.
Sec. 212. Eligible entities.
Sec. 213. Minimum requirements.
Sec. 214. Tier 1 participants in C-TPAT.
Sec. 215. Tier 2 participants in C-TPAT.
Sec. 216. Tier 3 participants in C-TPAT.
Sec. 217. Consequences for lack of compliance.
Sec. 218. Third party validations.
Sec. 219. Revalidation.
Sec. 220. Noncontainerized cargo.
Sec. 221. C-TPAT program management.
Sec. 222. Additional personnel.
Sec. 223. Authorization of appropriations.

                  Subtitle C--Miscellaneous Provisions

Sec. 231. Pilot integrated scanning system.
Sec. 232. Screening and scanning of cargo containers.
Sec. 233. International cooperation and coordination.
Sec. 234. Foreign port assessments.
Sec. 235. Pilot program to improve the security of empty containers.
Sec. 236. Information sharing relating to supply chain security 
           cooperation.

                        TITLE III--ADMINISTRATION

Sec. 301. Office of Cargo Security Policy.
Sec. 302. Reauthorization of Homeland Security Science and Technology 
           Advisory Committee.
Sec. 303. Research, development, test, and evaluation efforts in 
           furtherance of maritime and cargo security.

                TITLE IV--AGENCY RESOURCES AND OVERSIGHT

Sec. 401. Trade and customs revenue functions of the department.
Sec. 402. Office of international trade; oversight.
Sec. 403. Resources.
Sec. 404. Negotiations.
Sec. 405. International Trade Data System.
Sec. 406. In-bond cargo.
Sec. 407. Sense of the Senate.

               TITLE V--DOMESTIC NUCLEAR DETECTION OFFICE

Sec. 501. Establishment of Domestic Nuclear Detection Office.
Sec. 502. Technology research and development investment strategy for 
           nuclear and radiological detection.

               TITLE VI--COMMERCIAL MOBILE SERVICE ALERTS

Sec. 601. Short title.
Sec. 602. Federal Communications Commission duties.
Sec. 603. Commercial Mobile Service Alert Advisory Committee.
Sec. 604. Research and development.
Sec. 605. Grant program for remote community alert systems.
Sec. 606. Funding.
Sec. 607. Essential services disaster assistance.
Sec. 608. Community disaster loans.
Sec. 609. Public facilities.
Sec. 610. Expedited payments.
Sec. 611. Use of local contracting.
Sec. 612. FEMA programs.
Sec. 613. Homeland security definition.

                        TITLE VII--OTHER MATTERS

Sec. 701. Security plan for essential air service and small community 
           airports.
Sec. 702. Disclosures regarding homeland security grants.
Sec. 703. Trucking security.
Sec. 704. Air and Marine Operations of the Northern Border Air Wing.
Sec. 705. Phaseout of vessels supporting oil and gas development.

[[Page 120 STAT. 1886]]

Sec. 706. Coast Guard property in Portland, Maine.
Sec. 707. Methamphetamine and methamphetamine precursor chemicals.
Sec. 708. Aircraft charter customer and lessee prescreening program.
Sec. 709. Protection of health and safety during disasters.

           TITLE VIII--UNLAWFUL INTERNET GAMBLING ENFORCEMENT

Sec. 801. Short title.
Sec. 802. Prohibition on acceptance of any payment instrument for 
           unlawful Internet gambling.
Sec. 803. Internet gambling in or through foreign jurisdictions.

SEC. 2. <<NOTE: 6 USC 901.>>  DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--Except as 
        otherwise provided, the term ``appropriate congressional 
        committees'' means--
                    (A) the Committee on Appropriations of the Senate;
                    (B) the Committee on Commerce, Science, and 
                Transportation of the Senate;
                    (C) the Committee on Finance of the Senate;
                    (D) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (E) the Committee on Appropriations of the House of 
                Representatives;
                    (F) the Committee on Homeland Security of the House 
                of Representatives;
                    (G) the Committee on Transportation and 
                Infrastructure of the House of Representatives;
                    (H) the Committee on Ways and Means of the House of 
                Representatives; and
                    (I) other congressional committees, as appropriate.
            (2)  Commercial operations advisory committee.--The term 
        ``Commercial Operations Advisory Committee'' means the Advisory 
        Committee established pursuant to section 9503(c) of the Omnibus 
        Budget Reconciliation Act of 1987 (19 U.S.C. 2071 note) or any 
        successor committee.
            (3) Commercial seaport personnel.--The term ``commercial 
        seaport personnel'' includes any person engaged in an activity 
        relating to the loading or unloading of cargo or passengers, 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.
            (4) Commissioner.--The term ``Commissioner'' means the 
        Commissioner responsible for the United States Customs and 
        Border Protection of the Department of Homeland Security.
            (5) Container.--The term ``container'' has the meaning given 
        the term in the International Convention for Safe Containers, 
        with annexes, done at Geneva, December 2, 1972 (29 UST 3707).
            (6) Container security device.--The term ``container 
        security device'' means a device, or system, designed, at a 
        minimum, to identify positively a container, to detect and 
        record the unauthorized intrusion of a container, and to secure 
        a container against tampering throughout the supply chain. Such 
        a device, or system, shall have a low false alarm rate as 
        determined by the Secretary.
            (7) Department.--The term ``Department'' means the 
        Department of Homeland Security.

[[Page 120 STAT. 1887]]

            (8) Examination.--The term ``examination'' means an 
        inspection of cargo to detect the presence of misdeclared, 
        restricted, or prohibited items that utilizes nonintrusive 
        imaging and detection technology.
            (9) Inspection.--The term ``inspection'' means the 
        comprehensive process used by the United States Customs and 
        Border Protection to assess 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. The process may include screening, 
        conducting an examination, or conducting a search.
            (10) International supply chain.--The term ``international 
        supply chain'' means the end-to-end process for shipping goods 
        to or from the United States beginning at the point of origin 
        (including manufacturer, supplier, or vendor) through a point of 
        distribution to the destination.
            (11) Radiation detection equipment.--The term ``radiation 
        detection equipment'' means any technology that is capable of 
        detecting or identifying nuclear and radiological material or 
        nuclear and radiological explosive devices.
            (12) Scan.--The term ``scan'' means utilizing nonintrusive 
        imaging equipment, radiation detection equipment, or both, to 
        capture data, including images of a container.
            (13) 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 the presence of 
        misdeclared, restricted, or prohibited items and assess the 
        level of threat posed by such cargo.
            (14) Search.--The term ``search'' means an intrusive 
        examination in which a container is opened and its contents are 
        devanned and visually inspected for the presence of misdeclared, 
        restricted, or prohibited items.
            (15) Secretary.--The term ``Secretary'' means the Secretary 
        of Homeland Security.
            (16) Transportation disruption.--The term ``transportation 
        disruption'' means any significant delay, interruption, or 
        stoppage in the flow of trade caused by a natural disaster, 
        heightened threat level, an act of terrorism, or any 
        transportation security incident (as defined in section 70101(6) 
        of title 46, United States Code).
            (17) Transportation security incident.--The term 
        ``transportation security incident'' has the meaning given the 
        term in section 70101(6) of title 46, United States Code.

               TITLE I--SECURITY OF UNITED STATES SEAPORTS

                     Subtitle A--General Provisions

SEC. 101. AREA MARITIME TRANSPORTATION SECURITY PLAN TO INCLUDE 
                        SALVAGE RESPONSE PLAN.

    Section 70103(b)(2) of title 46, United States Code, is amended--

[[Page 120 STAT. 1888]]

            (1) in subparagraph (E), by striking ``and'' after the 
        semicolon;
            (2) by redesignating subparagraph (F) as subparagraph (G); 
        and
            (3) by inserting after subparagraph (E) the following:
            ``(F) include a salvage response plan--
                    ``(i) to identify salvage equipment capable of 
                restoring operational trade capacity; and
                    ``(ii) to ensure that the waterways are cleared and 
                the flow of commerce through United States ports is 
                reestablished as efficiently and quickly as possible 
                after a maritime transportation security incident; 
                and''.
SEC. 102. REQUIREMENTS RELATING TO MARITIME FACILITY SECURITY 
                        PLANS.

    Section 70103(c) of title 46, United States Code, is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (C)(ii), by striking 
                ``facility'' and inserting ``facility, including access 
                by persons engaged in the surface transportation of 
                intermodal containers in or out of a port facility'';
                    (B) in subparagraph (F), by striking ``and'' at the 
                end;
                    (C) in subparagraph (G), by striking the period at 
                the end and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(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.''; and
            (2) by adding at the end the following:

    ``(8)(A) <<NOTE: Citizenship.>> 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 watch lists to ensure that the 
individual is not identified on any such terrorist watch list.''.
SEC. 103. UNANNOUNCED INSPECTIONS OF MARITIME FACILITIES.

    Section 70103(c)(4)(D) of title 46, United States Code, is amended 
to read as follows:
            ``(D) subject to the availability of appropriations, verify 
        the effectiveness of each such facility security plan 
        periodically, but not less than 2 times per year, at least 1 of 
        which shall be an inspection of the facility that is conducted 
        without notice to the facility.''.
SEC. 104. TRANSPORTATION SECURITY CARD.

    (a) In General.--Section 70105 of title 46, United States Code, is 
amended by adding at the end the following:
    ``(g) Applications for Merchant Mariners' Documents.--The Assistant 
Secretary of Homeland Security for the Transportation Security 
Administration and the Commandant of the Coast Guard shall concurrently 
process an application from an individual for merchant mariner's 
documents under chapter 73 of title 46,

[[Page 120 STAT. 1889]]

United States Code, and an application from that individual for a 
transportation security card under this section.
    ``(h) Fees.--The Secretary shall ensure that the fees charged each 
individual applying for a transportation security card under this 
section who has passed a background check under section 5103a(d) of 
title 49, United States Code, and who has a current hazardous materials 
endorsement in accordance with section 1572 of title 49, Code of Federal 
Regulations, and each individual with a current merchant mariners' 
document who has passed a criminal background check under section 
7302(d)--
            ``(1) are for costs associated with the issuance, 
        production, and management of the transportation security card, 
        as determined by the Secretary; and
            ``(2) do not include costs associated with performing a 
        background check for that individual, except for any incremental 
        costs in the event that the scope of such background checks 
        diverge.

    ``(i) Implementation Schedule.--In implementing the transportation 
security card program under this section, the Secretary shall--
            ``(1) establish a priority for each United States port based 
        on risk, including vulnerabilities assessed under section 70102; 
        and
            ``(2) <<NOTE: Deadlines.>> implement the program, based upon 
        such risk and other factors as determined by the Secretary, at 
        all facilities regulated under this chapter at--
                    ``(A) the 10 United States ports that the Secretary 
                designates top priority not later than July 1, 2007;
                    ``(B) the 40 United States ports that are next in 
                order of priority to the ports described in subparagraph 
                (A) not later than January 1, 2008; and
                    ``(C) all other United States ports not later than 
                January 1, 2009.

    ``(j) Transportation Security Card Processing Deadline.--Not later 
than January 1, 2009, the Secretary shall process and issue or deny each 
application for a transportation security card under this section for 
individuals with current and valid merchant mariners' documents on the 
date of the enactment of the SAFE Port Act.
    ``(k) Deployment of Transportation Security Card Readers.--
            ``(1) Pilot program.--
                    ``(A) In general.--The Secretary shall conduct a 
                pilot program to test the business processes, 
                technology, and operational impacts required to deploy 
                transportation security card readers at secure areas of 
                the marine transportation system.
                    ``(B) Geographic locations.--The pilot program shall 
                take place at not fewer than 5 distinct geographic 
                locations, to include vessels and facilities in a 
                variety of environmental settings.
                    ``(C) Commencement.--The pilot program shall 
                commence not later than 180 days after the date of the 
                enactment of the SAFE Port Act.
            ``(2) Correlation with transportation security cards.--

[[Page 120 STAT. 1890]]

                    ``(A) In general.--The pilot program described in 
                paragraph (1) shall be conducted concurrently with the 
                issuance of the transportation security cards described 
                in subsection (b) to ensure card and card reader 
                interoperability.
                    ``(B) Fee.--An individual charged a fee for a 
                transportation security card issued under this section 
                may not be charged an additional fee if the Secretary 
                determines different transportation security cards are 
                needed based on the results of the pilot program 
                described in paragraph (1) or for other reasons related 
                to the technology requirements for the transportation 
                security card program.
            ``(3) Regulations.-- <<NOTE: Deadline. Notice. Public 
        comment.>> Not later than 2 years after the commencement of the 
        pilot program under paragraph (1)(C), the Secretary, after a 
        notice and comment period that includes at least 1 public 
        hearing, shall promulgate final regulations that require the 
        deployment of transportation security card readers that are 
        consistent with the findings of the pilot program and build upon 
        the regulations prescribed under subsection (a).
            ``(4) Report.--Not later than 120 days before the 
        promulgation of regulations under paragraph (3), the Secretary 
        shall submit a comprehensive report to the appropriate 
        congressional committees (as defined in section 2(1) of SAFE 
        Port Act) that includes--
                    ``(A) the findings of the pilot program with respect 
                to technical and operational impacts of implementing a 
                transportation security card reader system;
                    ``(B) any actions that may be necessary to ensure 
                that all vessels and facilities to which this section 
                applies are able to comply with such regulations; and
                    ``(C) an analysis of the viability of equipment 
                under the extreme weather conditions of the marine 
                environment.

    ``(l) Progress Reports.--Not later than 6 months after the date of 
the enactment of the SAFE Port Act, and every 6 months thereafter until 
the requirements under this section are fully implemented, the Secretary 
shall submit a report on progress being made in implementing such 
requirements to the appropriate congressional committees (as defined in 
section 2(1) of the SAFE Port Act).
    ``(m) Limitation.--The Secretary may not require the placement of an 
electronic reader for transportation security cards on a vessel unless--
            ``(1) the vessel has more individuals on the crew that are 
        required to have a transportation security card than the number 
        the Secretary determines, by regulation issued under subsection 
        (k)(3), warrants such a reader; or
            ``(2) the Secretary determines that the vessel is at risk of 
        a severe transportation security incident.''.

    (b) Clarification of Eligibility for Transportation Security 
Cards.--Section 70105 of title 46, United States Code, is amended--
            (1) in subsection (b)(2)--
                    (A) in subparagraph (E), by striking ``and'' at the 
                end;
                    (B) in subparagraph (F), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:

[[Page 120 STAT. 1891]]

                    ``(G) other individuals as determined appropriate by 
                the Secretary including individuals employed at a port 
                not otherwise covered by this subsection.''; and
            (2) in subsection (c)(2), by inserting ``subparagraph (A), 
        (B), or (D)'' before ``paragraph (1)''.

    (c) <<NOTE: 46 USC 70105 note.>> Deadline for Section 70105 
Regulations.--Not later than January 1, 2007, the Secretary shall 
promulgate final regulations implementing the requirements for issuing 
transportation security cards under section 70105 of title 46, United 
States Code. The regulations shall include a background check process to 
enable newly hired workers to begin working unless the Secretary makes 
an initial determination that the worker poses a security risk. Such 
process shall include a check against the consolidated and integrated 
terrorist watch list maintained by the Federal Government.
SEC. 105. STUDY TO IDENTIFY REDUNDANT BACKGROUND RECORDS CHECKS.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study of background records checks carried out for the 
Department that are similar to the background records check required 
under section 5103a of title 49, United States Code, to identify 
redundancies and inefficiencies in connection with such checks.
    (b) Report.--Not later than 6 months after the date of the enactment 
of this Act, the Comptroller General of the United States shall submit a 
report to Congress on the results of the study, including--
            (1) an identification of redundancies and inefficiencies 
        referred to in subsection (a); and
            (2) recommendations for eliminating such redundancies and 
        inefficiencies.
SEC. 106. <<NOTE: 46 USC 70105 note.>> PROHIBITION OF ISSUANCE OF 
                        TRANSPORTATION SECURITY CARDS TO PERSONS 
                        CONVICTED OF CERTAIN FELONIES.

    The Secretary, in issuing a final rule pursuant to section 70105 of 
title 46, United States Code, shall provide for the disqualification of 
individuals who have been found guilty or have been found not guilty by 
reason of insanity of a felony, involving--
            (1) treason, or conspiracy to commit treason;
            (2) espionage, or conspiracy to commit espionage;
            (3) sedition, or conspiracy to commit sedition; or
            (4) a crime listed in chapter 113B of title 18, United 
        States Code, a comparable State law, or conspiracy to commit 
        such crime.
SEC. 107. 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) <<NOTE: 46 USC 70105 note.>> Voluntary Program.--The Secretary 
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 such section.

[[Page 120 STAT. 1892]]

SEC. 108. ESTABLISHMENT OF INTERAGENCY OPERATIONAL CENTERS FOR 
                        PORT SECURITY.

    (a) In General.--Chapter 701 of title 46, United States Code, is 
amended by inserting after section 70107 the following:

``Sec. 70107A. Interagency operational centers for port security

    ``(a) In General.-- <<NOTE: Deadline.>> The Secretary shall 
establish interagency operational centers for port security at all high-
priority ports not later than 3 years after the date of the enactment of 
the SAFE Port Act.

    ``(b) Characteristics.--The interagency operational centers 
established under this section shall--
            ``(1) utilize, as appropriate, the compositional and 
        operational characteristics of existing centers, including--
                    ``(A) the pilot project interagency operational 
                centers for port security in Miami, Florida; Norfolk/
                Hampton Roads, Virginia; Charleston, South Carolina; and 
                San Diego, California; and
                    ``(B) the virtual operation center of the Port of 
                New York and New Jersey;
            ``(2) be organized to fit the security needs, requirements, 
        and resources of the individual port area at which each is 
        operating;
            ``(3) in addition to the Coast Guard, provide, as the 
        Secretary determines appropriate, for participation by 
        representatives of the United States Customs and Border 
        Protection, the United States Immigration and Customs 
        Enforcement, the Transportation Security Administration, the 
        Department of Justice, the Department of Defense, and other 
        Federal agencies, State and local law enforcement or port 
        security personnel, members of the Area Maritime Security 
        Committee, and other public and private sector stakeholders 
        adversely affected by a transportation security incident or 
        transportation disruption; and
            ``(4) be incorporated in the implementation and 
        administration of--
                    ``(A) maritime transportation security plans 
                developed under section 70103;
                    ``(B) maritime intelligence activities under section 
                70113 and information sharing activities consistent with 
                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.);
                    ``(C) short- and long-range vessel tracking under 
                sections 70114 and 70115;
                    ``(D) protocols under section 201(b)(10) of the SAFE 
                Port Act;
                    ``(E) the transportation security incident response 
                plans required by section 70104; and
                    ``(F) other activities, as determined by the 
                Secretary.

    ``(c) Security Clearances.--The Secretary shall sponsor and expedite 
individuals participating in interagency operational centers in gaining 
or maintaining their security clearances. Through the Captain of the 
Port, the Secretary may identify key individuals who should participate. 
The port or other entities may appeal to the Captain of the Port for 
sponsorship.

[[Page 120 STAT. 1893]]

    ``(d) Security Incidents.--During a transportation security incident 
on or adjacent to waters subject to the jurisdiction of the United 
States, 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.
    ``(e) 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.
    ``(f) 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.''.
    (b) <<NOTE: 46 USC 70107A note.>> Report Requirement.--Nothing in 
this section or the amendments made by this section relieves the 
Commandant of the Coast Guard from complying with the requirements of 
section 807 of the Coast Guard and Maritime Transportation Act of 2004 
(Public Law 108-293; 118 Stat. 1082). The Commandant shall utilize the 
information developed in making the report required by that section in 
carrying out the requirements of this section.

    (c) Budget and Cost-Sharing Analysis.-- <<NOTE: Deadline.>> Not 
later than 180 days after the date of the enactment of this Act, the 
Secretary of the department in which the Coast Guard is operating shall 
submit to the appropriate congressional committees a proposed budget 
analysis for implementing section 70107A of title 46, United States 
Code, as added by subsection (a), including cost-sharing arrangements 
with other Federal departments and agencies involved in the interagency 
operation of the centers to be established under such section.

    (d) Clerical Amendment.--The chapter analysis for chapter 701 of 
title 46, United States Code, is amended by inserting after the item 
relating to section 70107 the following:

``70107A. Interagency operational centers for port security''.

SEC. 109. <<NOTE: 33 USC 1223 note.>> NOTICE OF ARRIVAL FOR 
                        FOREIGN VESSELS ON THE OUTER CONTINENTAL 
                        SHELF.

    (a) Notice of Arrival.-- <<NOTE: Deadline. Regulations.>> Not later 
than 180 days after the date of the enactment of this Act, the Secretary 
of the department in which the Coast Guard is operating shall update and 
finalize the rulemaking on notice of arrival for foreign vessels on the 
Outer Continental Shelf.

    (b) Content of Regulations.--The regulations promulgated pursuant to 
subsection (a) shall be consistent with information required under the 
Notice of Arrival under section 160.206 of title 33, Code of Federal 
Regulations, as in effect on the date of the enactment of this Act.
SEC. 110. 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 1 year after the date of enactment of the SAFE 
        Port Act, the''; and
            (2) in subsection (b) by striking ``The'' and inserting 
        ``Not later than 1 year after the date of enactment of the SAFE 
        Port Act, the''.

[[Page 120 STAT. 1894]]

    Subtitle B--Port Security Grants; Training and Exercise Programs

SEC. 111. <<NOTE: 46 USC 70103 note.>> RISK ASSESSMENT TOOL.

    In updating Area Maritime Security Plans required under section 
70103(b)(2)(F) of title 46, United States Code, and in applying for 
grants under section 70107 of such title, the Secretary of the 
Department in which the Coast Guard is operating shall make available, 
and Area Maritime Security Committees may use a risk assessment tool 
that uses standardized risk criteria, such as the Maritime Security Risk 
Assessment Tool used by the Coast Guard.
SEC. 112. PORT SECURITY GRANTS.

    (a) Basis for Grants.--Section 70107(a) of title 46, United States 
Code, is amended by striking ``for making a fair and equitable 
allocation of funds'' and inserting ``for the allocation of funds based 
on risk''.
    (b) Eligible Uses.--Section 70107(b) of title 46, United States 
Code, is amended--
            (1) in paragraph (2), by inserting after ``crewmembers.'' 
        the following: ``Grants awarded under this section may not be 
        used to construct buildings or other physical facilities, except 
        those which are constructed under terms and conditions 
        consistent with the requirements under section 611(j)(8) of the 
        Robert T. Stafford Disaster Relief and Emergency Assistance Act 
        (42 U.S.C. 5121(j)(8)), including those facilities in support of 
        this paragraph, and specifically approved by the Secretary. 
        Costs eligible for funding under this paragraph 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.''; and
            (2) by adding at the end the following:
            ``(5) The cost of conducting exercises or training for 
        prevention and detection of, preparedness for, response to, or 
        recovery from terrorist attacks.
            ``(6) The cost of establishing or enhancing mechanisms for 
        sharing terrorism threat information and ensuring that the 
        mechanisms are interoperable with Federal, State, and local 
        agencies.
            ``(7) The cost of equipment (including software) required to 
        receive, transmit, handle, and store classified information.''.

    (c) Multiple-Year Projects, Etc.--Section 70107 of title 46, United 
States Code, is amended--
            (1) by redesignating subsections (e), (f), (g), (h), and (i) 
        as subsections (i), (j), (k), (l), and (m), respectively, and by 
        inserting after subsection (d) the following:

    ``(e) Multiple-Year Projects.--
            ``(1) Letters of intent.--The Secretary may execute letters 
        of intent to commit funding to such authorities, operators, and 
        agencies.
            ``(2) Limitation.--Not more than 20 percent of the grant 
        funds awarded under this subsection in any fiscal year may be 
        awarded for projects that span multiple years.

[[Page 120 STAT. 1895]]

    ``(f) Consistency With Plans.--The Secretary shall ensure that each 
grant awarded under subsection (e)--
            ``(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.

    ``(g) Applications.--Any entity subject to an Area Maritime 
Transportation Security Plan 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.
    ``(h) Reports.--Not later than 180 days after the date of the 
enactment of the SAFE Port Act, the Secretary, acting through the 
Commandant of the Coast Guard, shall submit a report to Congress, in a 
secure format, describing the methodology used to allocate port security 
grant funds on the basis of risk.''; and
            (2) in subsection (i)(1), as redesignated, by striking 
        ``program'' and inserting ``Secretary''.

    (d) Authorization of Appropriations.--Section 70107(l) of title 46, 
United States Code, as redesignated, is amended to read as follows:
    ``(l) Authorization of Appropriations.--There are authorized to be 
appropriated $400,000,000 for each of the fiscal years 2007 through 2011 
to carry out this section.''.
    (e) Basis for Grants.--Section 70107(a) of title 46, United States 
Code, is amended by striking ``national economic and strategic defense 
concerns'' and inserting ``national economic, energy, and strategic 
defense concerns based upon the most current risk assessments 
available''.
SEC. 113. <<NOTE: 6 USC 911.>> PORT SECURITY TRAINING PROGRAM.

    (a) In General.--The Secretary, acting through the Under Secretary 
for Preparedness and in coordination with the Commandant of the Coast 
Guard, shall establish a Port Security Training Program (referred to in 
this section as the ``Training Program'') for the purpose of enhancing 
the capabilities of each facility required to submit a plan under 
section 70103(c) of title 46, United States Code, 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 Training 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;
            (4) addresses port security topics, including--
                    (A) facility security plans and procedures, 
                including how security plans and procedures are adjusted 
                when threat levels increase;
                    (B) facility security force operations and 
                management;
                    (C) physical security and access control at 
                facilities;
                    (D) methods of security for preventing and 
                countering cargo theft;

[[Page 120 STAT. 1896]]

                    (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, the 
        National Maritime Transportation Security Plan, 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 individuals in 
        neighborhoods around facilities required to submit a plan under 
        section 70103(c) of title 46, United States Code, on how to 
        observe and report security risks.

    (c) Vessel and Facility Security Plans.--Section 70103(c)(3) of 
title 46, United States Code, is amended--
            (1) by redesignating subparagraphs (F), (G), and (H) (as 
        added by section 102(1)(D)) as subparagraphs (G), (H), and (I), 
        respectively; and
            (2) by inserting after subparagraph (E) the following:
            ``(F) provide a strategy and timeline for conducting 
        training and periodic unannounced drills;''.

    (d) Consultation.--The Secretary shall ensure that, in carrying out 
the Program, the Office of Grants and Training shall consult with 
commercial seaport personnel and management.
    (e) Training Partners.--In developing and delivering training under 
the Training Program, the Secretary, in coordination with the Maritime 
Administration of the Department of Transportation, and consistent with 
section 109 of the Maritime Transportation Security Act of 2002 (46 
U.S.C. 70101 note), 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, government training facilities, 
        courses provided by community colleges, public safety academies, 
        State and private universities, and other facilities.
SEC. 114. <<NOTE: 6 USC 912.>> PORT SECURITY EXERCISE PROGRAM.

    (a) In General.--The Secretary, acting through the Under Secretary 
for Preparedness and in coordination with the Commandant of the Coast 
Guard, shall establish a Port Security Exercise Program (referred to in 
this section as the ``Exercise Program'') for the purpose of testing and 
evaluating the capabilities of Federal, State, local, and foreign 
governments, commercial seaport personnel

[[Page 120 STAT. 1897]]

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 facilities required to 
submit a plan under section 70103(c) of title 46, United States Code.
    (b) Requirements.--The Secretary shall ensure that the Exercise 
Program--
            (1) conducts, on a periodic basis, port security exercises 
        at such facilities that are--
                    (A) scaled and tailored to the needs of each 
                facility;
                    (B) live, in the case of the most at-risk 
                facilities;
                    (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, 
                the National Maritime Transportation Security Plan, 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, commercial 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
            (2) assists State and local governments and facilities in 
        designing, implementing, and evaluating exercises that--
                    (A) conform to the requirements of paragraph (1); 
                and
                    (B) are consistent with any applicable Area Maritime 
                Transportation Security Plan and State or Urban Area 
                Homeland Security Plan.

    (c) Improvement Plan.--The Secretary shall establish a port security 
exercise improvement plan process 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 Exercise Program;
            (3) monitor the implementation of lessons learned and best 
        practices by participants in the Exercise Program; and
            (4) conduct remedial action tracking and long-term trend 
        analysis.
SEC. 115. <<NOTE: 6 USC 913.>> FACILITY EXERCISE REQUIREMENTS.

    The Secretary of the Department in which the Coast Guard is 
operating shall require each high risk facility to conduct live or full-
scale exercises described in section 105.220(c) of title 33, Code of 
Federal Regulations, not less frequently than once every 2 years, in 
accordance with the facility security plan required under section 
70103(c) of title 46, United States Code.

[[Page 120 STAT. 1898]]

                       Subtitle C--Port Operations

SEC. 121. <<NOTE: 6 USC 921.>> DOMESTIC RADIATION DETECTION AND 
                        IMAGING.

    (a) Scanning Containers.-- <<NOTE: Deadline.>> Subject to section 
1318 of title 19, United States Code, not later than December 31, 2007, 
all containers entering the United States through the 22 ports through 
which the greatest volume of containers enter the United States by 
vessel shall be scanned for radiation. To the extent practicable, the 
Secretary shall deploy next generation radiation detection technology.

    (b) Strategy.--The Secretary shall develop a strategy for the 
deployment of radiation detection capabilities that includes--
            (1) a risk-based prioritization of ports of entry at which 
        radiation detection equipment will be deployed;
            (2) a proposed timeline of when radiation detection 
        equipment will be deployed at each port of entry identified 
        under paragraph (1);
            (3) the type of equipment to be used at each port of entry 
        identified under paragraph (1), including the joint deployment 
        and utilization of radiation detection equipment and 
        nonintrusive imaging equipment;
            (4) standard operating procedures for examining containers 
        with such equipment, including sensor alarming, networking, and 
        communications and response protocols;
            (5) operator training plans;
            (6) an evaluation of the environmental health and safety 
        impacts of nonintrusive imaging technology and a radiation risk 
        reduction plan, in consultation with the Nuclear Regulatory 
        Commission, the Occupational Safety and Health Administration, 
        and the National Institute for Occupational Safety and Health, 
        that seeks to minimize radiation exposure of workers and the 
        public to levels as low as reasonably achievable;
            (7) the policy of the Department for using nonintrusive 
        imaging equipment in tandem with radiation detection equipment; 
        and
            (8) a classified annex that--
                    (A) details plans for covert testing; and
                    (B) outlines the risk-based prioritization of ports 
                of entry identified under paragraph (1).

    (c) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary shall submit the strategy developed under 
subsection (b) to the appropriate congressional committees.
    (d) <<NOTE: Deadline.>> Update.--Not later than 180 days after the 
date of the submission of the report under subsection (c), the Secretary 
shall provide a more complete evaluation under subsection (b)(6).

    (e) Other Weapons of Mass Destruction Threats.-- 
<<NOTE: Deadline. Reports.>> 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 feasibility of, and a strategy 
for, the development of equipment to detect and prevent shielded nuclear 
and radiological threat material and chemical, biological, and other 
weapons of mass destruction from entering the United States.

    (f) Standards.-- <<NOTE: Publication.>> The Secretary, acting 
through the Director for Domestic Nuclear Detection and in collaboration 
with the

[[Page 120 STAT. 1899]]

National Institute of Standards and Technology, shall publish technical 
capability standards and recommended standard operating procedures for 
the use of nonintrusive imaging and radiation detection equipment in the 
United States. Such standards and procedures--
            (1) should take into account relevant standards and 
        procedures utilized by other Federal departments or agencies as 
        well as those developed by international bodies; and
            (2) shall not be designed so as to endorse specific 
        companies or create sovereignty conflicts with participating 
        countries.

    (g) Implementation.--Not later than 3 years after the date of the 
enactment of this Act, the Secretary shall fully implement the strategy 
developed under subsection (b).
    (h) Expansion to Other United States Ports of Entry.--
            (1) In general.--As soon as practicable after--
                    (A) implementation of the program for the 
                examination of containers for radiation at ports of 
                entry described in subsection (a); and
                    (B) <<NOTE: Deadline.>> submission of the strategy 
                developed under subsection (b) (and updating, if any, of 
                that strategy under subsection (c)),
        but not later than December 31, 2008, the Secretary shall expand 
        the strategy developed under subsection (b), in a manner 
        consistent with the requirements of subsection (b), to provide 
        for the deployment of radiation detection capabilities at all 
        other United States ports of entry not covered by the strategy 
        developed under subsection (b).
            (2) Risk assessment.--In expanding the strategy under 
        paragraph (1), the Secretary shall identify and assess the risks 
        to those other ports of entry in order to determine what 
        equipment and practices will best mitigate the risks.

    (i) Intermodal Rail Radiation Detection Test Center.--
            (1) Establishment.--In accordance with subsection (b), and 
        in order to comply with this section, the Secretary shall 
        establish an Intermodal Rail Radiation Detection Test Center 
        (referred to in this subsection as the ``Test Center'').
            (2) Projects.--The Secretary shall conduct multiple, 
        concurrent projects at the Test Center to rapidly identify and 
        test concepts specific to the challenges posed by on-dock rail.
            (3) Location.--The Test Center shall be located within a 
        public port facility at which a majority of the containerized 
        cargo is directly laden from (or unladen to) on-dock, intermodal 
        rail.
SEC. 122. <<NOTE: Deadline. 6 USC 922.>> INSPECTION OF CAR FERRIES 
                        ENTERING FROM ABROAD.

    Not later than 120 days after the date of the enactment of this Act, 
the Secretary, acting through the Commissioner, and in coordination with 
the Secretary of State and in cooperation with ferry operators and 
appropriate foreign government officials, shall seek to develop a plan 
for the inspection of passengers and vehicles before such passengers 
board, or such vehicles are loaded onto, a ferry bound for a United 
States facility required to submit a plan under section 70103(c) of 
title 46, United States Code.
SEC. 123. <<NOTE: Deadline. 6 USC 923.>> RANDOM SEARCHES OF 
                        CONTAINERS.

    Not later than 1 year after the date of the enactment of this Act, 
the Secretary, acting through the Commissioner, shall develop and 
implement a plan, utilizing best practices for empirical scientific

[[Page 120 STAT. 1900]]

research design and random sampling, to conduct random searches of 
containers in addition to any targeted or preshipment inspection of such 
containers required by law or regulation or conducted under any other 
program conducted by the Secretary. Nothing in this section shall be 
construed to mean that implementation of the random sampling plan 
precludes additional searches of containers not inspected pursuant to 
the plan.
SEC. 124. WORK STOPPAGES AND EMPLOYEE-EMPLOYER DISPUTES.

    Section 70101(6) of title 46, United States Code, is amended by 
adding at the end the following: ``In this paragraph, the term `economic 
disruption' does not include a work stoppage or other employee-related 
action not related to terrorism and resulting from an employee-employer 
dispute.''.
SEC. 125. <<NOTE: Deadline. 6 USC 924.>> THREAT ASSESSMENT 
                        SCREENING OF PORT TRUCK DRIVERS.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary shall implement a threat assessment screening, including 
name-based checks against terrorist watch lists and immigration status 
check, for all port truck drivers with access to secure areas of a port 
who have a commercial driver's license but do not have a current and 
valid hazardous materials endorsement issued in accordance with section 
1572 of title 49, Code of Federal Regulations, that is the same as the 
threat assessment screening required for facility employees and 
longshoremen by the Commandant of the Coast Guard under Coast Guard 
Notice USCG-2006-24189 (Federal Register, Vol. 71, No. 82, Friday, April 
28, 2006).
SEC. 126. <<NOTE: 6 USC 925.>> BORDER PATROL UNIT FOR UNITED 
                        STATES VIRGIN ISLANDS.

    (a) In General.--The Secretary may establish at least 1 Border 
Patrol unit for the United States Virgin Islands.
    (b) Report.--Not later than 180 days after the date of the enactment 
of this Act, the Secretary shall submit a report to the appropriate 
congressional committees that includes the schedule, if any, for 
carrying out subsection (a).
SEC. 127. 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 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. 128. <<NOTE: 6 USC 926.>> CENTER OF EXCELLENCE FOR MARITIME 
                        DOMAIN AWARENESS.

    (a) Establishment.--The Secretary 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.

[[Page 120 STAT. 1901]]

    (b) Duties.--The Center established under subsection (a) shall--
            (1) prioritize its activities based on the ``National Plan 
        To Improve Maritime Domain Awareness'' published by the 
        Department 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.

          TITLE II--SECURITY OF THE INTERNATIONAL SUPPLY CHAIN

                     Subtitle A--General Provisions

SEC. 201. <<NOTE: 6 USC 941.>> 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, 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 recommended by the Commissioner;
            (7) consider the impact of supply chain security 
        requirements on small- and medium-sized companies;

[[Page 120 STAT. 1902]]

            (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 protocols for the expeditious resumption of the 
        flow of trade in accordance with section 202;
            (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 Response Plan, the National 
        Maritime Transportation Security Plan, the National Strategy for 
        Maritime Security, and the 8 supporting plans of the Strategy, 
        as required by Homeland Security Presidential Directive 13.

    (c) Consultation.--In developing protocols under subsection (b)(10), 
the Secretary shall consult with Federal, State, local, and private 
sector stakeholders, including the National Maritime Security Advisory 
Committee and the Commercial Operations Advisory Committee.
    (d) Communication.--To the extent practicable, the strategic plan 
developed under subsection (a) shall provide for coordination with, and 
lines of communication among, appropriate Federal, State, local, and 
private-sector stakeholders on law enforcement actions, intermodal 
rerouting plans, and other strategic infrastructure issues resulting 
from a transportation security incident or transportation disruption.
    (e) 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.
    (f) 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.
    (g) Report.--
            (1) Initial 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 that contains the 
        strategic plan required by subsection (a).
            (2) Final report.--Not later than 3 years after the date on 
        which the strategic plan is submitted under paragraph (1), the 
        Secretary shall submit a report to the appropriate congressional 
        committees that contains an update of the strategic plan.

[[Page 120 STAT. 1903]]

SEC. 202. <<NOTE: 6 USC 942.>> POST-INCIDENT RESUMPTION OF TRADE.

    (a) In General.--The Secretary shall develop and update, as 
necessary, protocols for the resumption of trade in accordance with 
section 201(b)(10) in the event of a transportation disruption or a 
transportation security incident. The protocols shall include--
            (1) the identification of the appropriate initial incident 
        commander, if the Commandant of the Coast Guard is not the 
        appropriate person, and lead departments, agencies, or offices 
        to execute such protocols;
            (2) a plan to redeploy resources and personnel, as 
        necessary, to reestablish the flow of trade;
            (3) a plan to provide training for the periodic instruction 
        of personnel of the United States Customs and Border Protection, 
        the Coast Guard, and the Transportation Security Administration 
        in trade resumption functions and responsibilities; and
            (4) appropriate factors for establishing prioritization of 
        vessels and cargo determined by the President to be critical for 
        response and recovery, including factors relating to public 
        health, national security, and economic need.

    (b) Vessels.--In determining the prioritization of vessels accessing 
facilities (as defined under section 70101 of title 46, United States 
Code), the Commandant of the Coast Guard may, to the extent practicable 
and consistent with the protocols and plans required under this section 
to ensure the safe and secure transit of vessels to ports in the United 
States after a transportation security incident, give priority to a 
vessel--
            (1) that has an approved security plan under section 
        70103(c) of title 46, United States Code, or a valid 
        international ship security certificate, as provided under part 
        104 of title 33, Code of Federal Regulations;
            (2) that is manned by individuals who are described in 
        section 70105(b)(2)(B) of title 46, United States Code; and
            (3) that is operated by validated participants in the 
        Customs-Trade Partnership Against Terrorism program.

    (c) Cargo.--In determining the prioritization of the resumption of 
the flow of cargo and consistent with the protocols established under 
this section, the Commissioner may give preference to cargo--
            (1) entering a port of entry directly from a foreign seaport 
        designated under the Container Security Initiative;
            (2) from the supply chain of a validated C-TPAT participant 
        and other private sector entities, as appropriate; or
            (3) that has undergone--
                    (A) a nuclear or radiological detection scan;
                    (B) an x-ray, density, or other imaging scan; and
                    (C) a system to positively identify the container at 
                the last port of departure prior to arrival in the 
                United States, which data has been evaluated and 
                analyzed by personnel of the United States Customs and 
                Border Protection.

    (d) Coordination.--The Secretary shall ensure that there is 
appropriate coordination among the Commandant of the Coast Guard, the 
Commissioner, and other Federal officials following a maritime 
disruption or maritime transportation security incident in order to 
provide for the resumption of trade.
    (e) Communication.--Consistent with section 201, the Commandant of 
the Coast Guard, Commissioner, and other appropriate

[[Page 120 STAT. 1904]]

Federal officials, shall promptly communicate any revised procedures or 
instructions intended for the private sector following a maritime 
disruption or maritime transportation security incident.
SEC. 203. <<NOTE: 6 USC 943.>> AUTOMATED TARGETING SYSTEM.

    (a) In General.--The Secretary, acting through the Commissioner, 
shall--
            (1) identify and seek the submission of data related to the 
        movement of a shipment of cargo through the international supply 
        chain; and
            (2) analyze the data described in paragraph (1) to identify 
        high-risk cargo for inspection.

    (b) Requirement.--The Secretary, acting through the Commissioner, 
shall require the electronic transmission to the Department 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.
    (c) Consideration.--The Secretary, acting through the Commissioner, 
shall--
            (1) consider the cost, benefit, and feasibility of--
                    (A) requiring additional nonmanifest documentation;
                    (B) reducing the time period allowed by law for 
                revisions to a container cargo manifest;
                    (C) reducing the time period allowed by law for 
                submission of certain elements 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 successor 
                targeting system in furthering the security and 
                integrity of the international supply chain; and
            (2) consult with stakeholders, including the Commercial 
        Operations Advisory Committee, and identify to them the need for 
        such information, and the appropriate timing of its submission.

    (d) 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.
    (e) System Improvements.--The Secretary, acting through the 
Commissioner, shall--
            (1) conduct, through an independent panel, a review of the 
        effectiveness and capabilities of the Automated Targeting 
        System;
            (2) 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;
            (3) ensure that the Automated Targeting System has the 
        capability to electronically compare manifest and other 
        available data for cargo entered into or bound for the United 
        States

[[Page 120 STAT. 1905]]

        to detect any significant anomalies between such data and 
        facilitate the resolution of such anomalies;
            (4) ensure that the Automated Targeting System has the 
        capability to electronically identify, compile, and compare 
        select data elements for cargo entered into or bound for the 
        United States following a maritime transportation security 
        incident, in order to efficiently identify cargo for increased 
        inspection or expeditious release; and
            (5) develop 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 with respect to the operation of the Automated 
        Targeting System.

    (f) 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.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the United States Customs and Border Protection to carry 
out the Automated Targeting System for identifying high-risk oceanborne 
container cargo for inspection--
            (1) $33,200,000 for fiscal year 2008;
            (2) $35,700,000 for fiscal year 2009; and
            (3) $37,485,000 for fiscal year 2010.
SEC. 204. <<NOTE: 6 USC 944.>> CONTAINER SECURITY STANDARDS AND 
                        PROCEDURES.

    (a) Establishment.--
            (1) In general.-- <<NOTE: Deadline.>> Not later than 90 days 
        after the date of the enactment of this Act, the Secretary shall 
        initiate a rulemaking proceeding to establish minimum standards 
        and procedures for securing containers in transit to the United 
        States.
            (2) Interim rule.-- <<NOTE: Deadline.>> Not later than 180 
        days after the date of the enactment of this Act, the Secretary 
        shall issue an interim final rule pursuant to the proceeding 
        described in paragraph (1).
            (3) Missed deadline.--If the Secretary is unable to meet the 
        deadline established pursuant to paragraph (2), the Secretary 
        shall submit a letter to the appropriate congressional 
        committees explaining why the Secretary is unable to meet that 
        deadline and describing what must be done before such minimum 
        standards and procedures can be established.
            (4) Deadline for enforcement.--Not later than 2 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 review 
and enhance the standards and procedures established pursuant to 
subsection (a), 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, the Secretary of Energy, and 
other Federal Government officials, as appropriate, and with the 
Commercial Operations Advisory Committee, the

[[Page 120 STAT. 1906]]

Homeland Security Advisory Committee, and the National Maritime Security 
Advisory Committee, 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, the 
International Organization for Standardization, the International Labor 
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. 205. <<NOTE: 6 USC 945.>> CONTAINER SECURITY INITIATIVE.

    (a) Establishment.--The Secretary, acting through the Commissioner, 
shall establish and implement a program (referred to in this section as 
the ``Container Security Initiative'' or ``CSI'') to identify and 
examine or search maritime containers that pose a security risk before 
loading such containers in a foreign port for shipment to the United 
States, either directly or through a foreign port.
    (b) Assessment.--The Secretary, acting through the Commissioner, may 
designate foreign seaports to participate in the Container Security 
Initiative after the Secretary has assessed the costs, benefits, and 
other factors associated with such designation, including--
            (1) the level of risk for the potential compromise of 
        containers by terrorists, or other threats as determined by the 
        Secretary;
            (2) the volume of cargo being imported to the United States 
        directly from, or being transshipped through, the foreign 
        seaport;
            (3) the results of the Coast Guard assessments conducted 
        pursuant to section 70108 of title 46, United States Code;
            (4) the commitment of the government of the country in which 
        the foreign seaport is located 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 at 
        the foreign seaport by the Department.

    (c) Notification.--The Secretary shall notify the appropriate 
congressional committees of the designation of a foreign port under the 
Container Security Initiative or the revocation of such a designation 
before notifying the public of such designation or revocation.
    (d) Negotiations.--The Secretary, in cooperation with the Secretary 
of State and in consultation with the United States Trade 
Representative, may enter into negotiations with the government of each 
foreign nation in which a seaport is designated under the Container 
Security Initiative to ensure full compliance with the requirements 
under the Container Security Initiative.
    (e) Overseas Inspections.--
            (1) Requirements and procedures.--The Secretary shall--

[[Page 120 STAT. 1907]]

                    (A) establish minimum 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);
                    (C) continually monitor the technologies, processes, 
                and techniques used to inspect cargo at ports designated 
                under CSI to ensure adherence to such criteria and the 
                use of such procedures; and
                    (D) consult with the Secretary of Energy in 
                establishing the minimum technical capability criteria 
                and standard operating procedures established under 
                subparagraph (A) pertaining to radiation detection 
                technologies to promote consistency in detection systems 
                at foreign ports designated under CSI.
            (2) Constraints.--The criteria and procedures established 
        under paragraph (1)(A)--
                    (A) shall be consistent, as practicable, with 
                relevant standards and procedures utilized by other 
                Federal departments or agencies, or developed by 
                international bodies if the United States consents to 
                such standards and procedures;
                    (B) shall not apply to activities conducted under 
                the Megaports Initiative of the Department of Energy; 
                and
                    (C) shall not be designed to endorse the product or 
                technology of any specific company or to conflict with 
                the sovereignty of a country in which a foreign seaport 
                designated under the Container Security Initiative is 
                located.

    (f) Savings Provision.--The authority of the Secretary under this 
section shall not affect any authority or duplicate any efforts or 
responsibilities of the Federal Government with respect to the 
deployment of radiation detection equipment outside of the United 
States.
    (g) Coordination.--The Secretary shall--
            (1) coordinate with the Secretary of Energy, as necessary, 
        to provide radiation detection equipment required to support the 
        Container Security Initiative through the Department of Energy's 
        Second Line of Defense Program and Megaports Initiative; or
            (2) work with the private sector or host governments, when 
        possible, to obtain radiation detection equipment that meets the 
        Department's and the Department of Energy's technical 
        specifications for such equipment.

    (h) Staffing.--The Secretary shall develop a human capital 
management plan to determine adequate staffing levels in the United 
States and in foreign seaports including, as appropriate, the remote 
location of personnel in countries in which foreign seaports are 
designated under the Container Security Initiative.
    (i) Annual Discussions.--The Secretary, in coordination with the 
appropriate Federal officials, shall hold annual discussions with 
foreign governments of countries in which foreign seaports designated 
under the Container Security Initiative are located regarding best 
practices, technical assistance, training needs, and

[[Page 120 STAT. 1908]]

technological developments that will assist in ensuring the efficient 
and secure movement of international cargo.
    (j) Lesser Risk Port.--The Secretary, acting through the 
Commissioner, may treat cargo loaded in a foreign seaport designated 
under the Container Security Initiative as presenting a lesser risk than 
similar cargo loaded in a foreign seaport that is not designated under 
the Container Security Initiative, for the purpose of clearing such 
cargo into the United States.
    (k) Prohibition.--
            (1) In general.--The Secretary shall issue a ``do not load'' 
        order, using existing authorities, to prevent the onload of any 
        cargo loaded at a port designated under CSI that has been 
        identified as high risk, including by the Automated Targeting 
        System, unless the cargo is determined to no longer be high risk 
        through--
                    (A) a scan of the cargo with nonintrusive imaging 
                equipment and radiation detection equipment;
                    (B) a search of the cargo; or
                    (C) additional information received by the 
                Department.
            (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.

    (l) Report.--
            (1) In general.--Not later than September 30, 2007, the 
        Secretary, acting through the Commissioner, shall, in 
        consultation with other appropriate government officials and the 
        Commercial Operations Advisory Committee, submit a report to the 
        appropriate congressional committees on the effectiveness of, 
        and the need for any improvements to, the Container Security 
        Initiative. The report shall include--
                    (A) a description of the technical assistance 
                delivered to, as well as needed at, each designated 
                seaport;
                    (B) a description of the human capital management 
                plan at each designated seaport;
                    (C) a summary of the requests made by the United 
                States to foreign governments to conduct physical or 
                nonintrusive inspections of cargo at designated 
                seaports, and whether each such request was granted or 
                denied by the foreign government;
                    (D) an assessment of the effectiveness of screening, 
                scanning, and inspection protocols and technologies 
                utilized at designated seaports and the effect on the 
                flow of commerce at such seaports, as well as any 
                recommendations for improving the effectiveness of 
                screening, scanning, and inspection protocols and 
                technologies utilized at designated seaports;
                    (E) a description and assessment of the outcome of 
                any security incident involving a foreign seaport 
                designated under the Container Security Initiative;
                    (F) the rationale for the continuance of each port 
                designated under CSI;
                    (G) a description of the potential for remote 
                targeting to decrease the number of personnel who are 
                deployed at foreign ports under CSI; and
                    (H) a summary and assessment of the aggregate number 
                and extent of trade compliance lapses at each seaport 
                designated under the Container Security Initiative.

[[Page 120 STAT. 1909]]

            (2) Updated report.--Not later than September 30, 2010, the 
        Secretary, acting through the Commissioner, shall, in 
        consultation with other appropriate government officials and the 
        Commercial Operations Advisory Committee, submit an updated 
        report to the appropriate congressional committees on the 
        effectiveness of, and the need for any improvements to, the 
        Container Security Initiative. The updated report shall address 
        each of the elements required to be included in the report 
        provided for under paragraph (1).

    (m) Authorization of Appropriations.--There are authorized to be 
appropriated to the United States Customs and Border Protection to carry 
out the provisions of this section--
            (1) $144,000,000 for fiscal year 2008;
            (2) $146,000,000 for fiscal year 2009; and
            (3) $153,300,000 for fiscal year 2010.

         Subtitle B--Customs-Trade Partnership Against Terrorism

SEC. 211. <<NOTE: 6 USC 961.>> ESTABLISHMENT.

    (a) Establishment.--The Secretary, acting through the Commissioner, 
is authorized to establish a voluntary government-private sector 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, and to 
facilitate the movement of secure cargo through the international supply 
chain, by providing benefits to participants meeting or exceeding the 
program requirements. Participants in C-TPAT shall include Tier 1 
participants, Tier 2 participants, and Tier 3 participants.
    (b) Minimum Security Requirements.--The Secretary, acting through 
the Commissioner, shall review the minimum security requirements of C-
TPAT at least once every year and update such requirements as necessary.
SEC. 212. <<NOTE: 6 USC 962.>> ELIGIBLE ENTITIES.

    Importers, customs 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. 213. <<NOTE: 6 USC 963.>> MINIMUM REQUIREMENTS.

    An applicant seeking to participate in C-TPAT shall--
            (1) demonstrate a history of moving cargo in the 
        international supply chain;
            (2) conduct an assessment of its supply chain based upon 
        security criteria established by the Secretary, acting through 
        the Commissioner, 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;

[[Page 120 STAT. 1910]]

            (3) implement and maintain security measures and supply 
        chain security practices meeting security criteria established 
        by the Commissioner; and
            (4) meet all other requirements established by the 
        Commissioner, in consultation with the Commercial Operations 
        Advisory Committee.
SEC. 214. <<NOTE: 6 USC 964.>> TIER 1 PARTICIPANTS IN C-TPAT.

    (a) Benefits.--The Secretary, acting through the Commissioner, shall 
offer limited benefits to a Tier 1 participant who has been certified in 
accordance with the guidelines referred to in subsection (b). Such 
benefits may include a reduction in the score assigned pursuant to the 
Automated Targeting System of not greater than 20 percent of the high-
risk threshold established by the Secretary.
    (b) <<NOTE: Deadline.>> Guidelines.--Not later than 180 days after 
the date of the enactment of this Act, the Secretary, acting through the 
Commissioner, shall update the guidelines for certifying a C-TPAT 
participant's security measures and supply chain security practices 
under this section. Such guidelines shall include a background 
investigation and extensive documentation review.

    (c) Timeframe.--To the extent practicable, the Secretary, acting 
through the Commissioner, shall complete the Tier 1 certification 
process within 90 days of receipt of an application for participation in 
C-TPAT.
SEC. 215. <<NOTE: 6 USC 965.>> TIER 2 PARTICIPANTS IN C-TPAT.

    (a) Validation.--The Secretary, acting through the Commissioner, 
shall validate the security measures and supply chain security practices 
of a Tier 1 participant in accordance with the guidelines referred to in 
subsection (c). Such validation shall include on-site assessments at 
appropriate foreign locations utilized by the Tier 1 participant in its 
supply chain and shall, to the extent practicable, be completed not 
later than 1 year after certification as a Tier 1 participant.
    (b) Benefits.--The Secretary, acting through the Commissioner, shall 
extend benefits to each C-TPAT participant that has been validated as a 
Tier 2 participant under this section, which may include--
            (1) reduced scores in the Automated Targeting System;
            (2) reduced examinations of cargo; and
            (3) priority searches of cargo.

    (c) Guidelines.-- <<NOTE: Deadline.>> Not later than 180 days after 
the date of the enactment of this Act, the Secretary, acting through the 
Commissioner, shall develop a schedule and update the guidelines for 
validating a participant's security measures and supply chain security 
practices under this section.
SEC. 216. <<NOTE: 6 USC 966.>> TIER 3 PARTICIPANTS IN C-TPAT.

    (a) In General.--The Secretary, acting through the Commissioner, 
shall establish a third tier of C-TPAT participation that offers 
additional benefits to participants who demonstrate a sustained 
commitment to maintaining security measures and supply chain security 
practices that exceed the guidelines established for validation as a 
Tier 2 participant in C-TPAT under section 215.
    (b) Criteria.--The Secretary, acting through the Commissioner, shall 
designate criteria for validating a C-TPAT participant

[[Page 120 STAT. 1911]]

as a Tier 3 participant under this section. Such criteria may include--
            (1) compliance with any additional guidelines established by 
        the Secretary that exceed the guidelines established pursuant to 
        section 215 of this Act for validating a C-TPAT participant as a 
        Tier 2 participant, particularly with respect to controls over 
        access to cargo throughout the supply chain;
            (2) submission of additional information regarding cargo 
        prior to loading, as determined by the Secretary;
            (3) utilization of container security devices, technologies, 
        policies, or practices that meet standards and criteria 
        established by the Secretary; and
            (4) compliance with any other cargo requirements established 
        by the Secretary.

    (c) Benefits.--The Secretary, acting through the Commissioner, in 
consultation with the Commercial Operations Advisory Committee and the 
National Maritime Security Advisory Committee, shall extend benefits to 
each C-TPAT participant that has been validated as a Tier 3 participant 
under this section, which may include--
            (1) the expedited release of a Tier 3 participant's cargo in 
        destination ports within the United States during all threat 
        levels designated by the Secretary;
            (2) further reduction in examinations of cargo;
            (3) priority for examinations of cargo; and
            (4) further reduction in the risk score assigned pursuant to 
        the Automated Targeting System; and
            (5) inclusion in joint incident management exercises, as 
        appropriate.

    (d) Deadline.--Not later than 2 years after the date of the 
enactment of this Act, the Secretary, acting through the Commissioner, 
shall designate appropriate criteria pursuant to subsection (b) and 
provide benefits to validated Tier 3 participants pursuant to subsection 
(c).
SEC. 217. <<NOTE: 6 USC 967.>> CONSEQUENCES FOR LACK OF 
                        COMPLIANCE.

    (a) In General.--If at any time a C-TPAT participant's security 
measures and supply chain security practices fail to meet any of the 
requirements under this subtitle, the Commissioner may deny the 
participant benefits otherwise available under this subtitle, in whole 
or in part. The Commissioner shall develop procedures that provide 
appropriate protections to C-TPAT participants before benefits are 
revoked. Such procedures may not limit the ability of the Commissioner 
to take actions to protect the national security of the United States.
    (b) False or Misleading Information.--If a C-TPAT participant 
knowingly provides false or misleading information to the Commissioner 
during the validation process provided for under this subtitle, the 
Commissioner shall suspend or expel the participant from C-TPAT for an 
appropriate period of time. The Commissioner, after the completion of 
the process under subsection (c), may publish in the Federal Register a 
list of participants who have been suspended or expelled from C-TPAT 
pursuant to this subsection, and may make such list available to C-TPAT 
participants.
    (c) Right of Appeal.--

[[Page 120 STAT. 1912]]

            (1) In general.--A C-TPAT participant may appeal a decision 
        of the Commissioner pursuant to subsection (a). Such appeal 
        shall be filed with the Secretary not later than 90 days after 
        the date of the decision, and the Secretary shall issue a 
        determination not later than 180 days after the appeal is filed.
            (2) Appeals of other decisions.--A C-TPAT participant may 
        appeal a decision of the Commissioner pursuant to subsection 
        (b). <<NOTE: Deadlines.>> Such appeal shall be filed with the 
        Secretary not later than 30 days after the date of the decision, 
        and the Secretary shall issue a determination not later than 180 
        days after the appeal is filed.
SEC. 218. <<NOTE: 6 USC 968.>> THIRD PARTY VALIDATIONS.

    (a) Plan.--The Secretary, acting through the Commissioner, shall 
develop a plan to implement a 1-year voluntary pilot program to test and 
assess the feasibility, costs, and benefits of using third party 
entities to conduct validations of C-TPAT participants.
    (b) <<NOTE: Deadline. Reports.>> Consultations.--Not later than 120 
days after the date of the enactment of this Act, after consulting with 
private sector stakeholders, including the Commercial Operations 
Advisory Committee, the Secretary shall submit a report to the 
appropriate congressional committees on the plan described in subsection 
(a).

    (c) Pilot Program.--
            (1) <<NOTE: Deadline.>> In general.--Not later than 1 year 
        after the consultations described in subsection (b), the 
        Secretary shall carry out the 1-year pilot program to conduct 
        validations of C-TPAT participants using third party entities 
        described in subsection (a).
            (2) Authority of the secretary.--The decision to validate a 
        C-TPAT participant is solely within the discretion of the 
        Secretary, or the Secretary's designee.

    (d) Certification of Third Party Entities.--The Secretary shall 
certify a third party entity to conduct validations under subsection (c) 
if the entity--
            (1) demonstrates to the satisfaction of the Secretary that 
        the entity has the ability to perform validations in accordance 
        with standard operating procedures and requirements designated 
        by the Secretary; and
            (2) agrees--
                    (A) to perform validations in accordance with such 
                standard operating procedures and requirements (and 
                updates to such procedures and requirements); and
                    (B) to maintain liability insurance coverage at 
                policy limits and in accordance with conditions to be 
                established by the Secretary; and
            (3) signs an agreement to protect all proprietary 
        information of C-TPAT participants with respect to which the 
        entity will conduct validations.

    (e) Information for Establishing Limits of Liability Insurance.--A 
third party entity seeking a certificate under subsection (d) shall 
submit to the Secretary necessary information for establishing the 
limits of liability insurance required to be maintained by the entity 
under this Act.
    (f) Additional Requirements.--The Secretary shall ensure that--

[[Page 120 STAT. 1913]]

            (1) any third party entity certified under this section does 
        not have--
                    (A) any beneficial interest in or any direct or 
                indirect control over the C-TPAT participant for which 
                the validation services are performed; or
                    (B) any 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.

    (g) Monitoring.--
            (1) In general.--The Secretary shall regularly monitor and 
        inspect the operations of a third party entity conducting 
        validations under subsection (c) to ensure that the entity is 
        meeting the minimum standard operating procedures and 
        requirements for the validation of C-TPAT participants 
        established by the Secretary and all other applicable 
        requirements for validation services.
            (2) Revocation.--If the Secretary determines that a third 
        party entity is not meeting the minimum standard operating 
        procedures and requirements designated by the Secretary under 
        subsection (d)(1), the Secretary shall--
                    (A) revoke the entity's certificate of conformance 
                issued under subsection (d)(1); and
                    (B) review any validations conducted by the entity.

    (h) Limitation on Authority.--The Secretary may only grant a C-TPAT 
validation by a third party entity pursuant to subsection (c) if the C-
TPAT participant voluntarily submits to validation by such third party 
entity.
    (i) Report.--Not later than 30 days after the completion of the 
pilot program conducted pursuant to subsection (c), the Secretary shall 
submit a report to the appropriate congressional committees that 
contains--
            (1) the results of the pilot program, including the extent 
        to which the pilot program ensured sufficient protection for 
        proprietary commercial information;
            (2) the cost and efficiency associated with validations 
        under the pilot program;
            (3) the impact of the pilot program on the rate of 
        validations conducted under C-TPAT;
            (4) any impact on national security of the pilot program; 
        and
            (5) any recommendations by the Secretary based upon the 
        results of the pilot program.
SEC. 219. <<NOTE: 6 USC 969.>> REVALIDATION.

    The Secretary, acting through the Commissioner, shall develop and 
implement--
            (1) a revalidation process for Tier 2 and Tier 3 
        participants;
            (2) a framework based upon objective criteria for 
        identifying participants for periodic revalidation not less 
        frequently than once during each 4-year period following the 
        initial validation; and
            (3) an annual plan for revalidation that includes--
                    (A) performance measures;
                    (B) an assessment of the personnel needed to perform 
                the revalidations; and

[[Page 120 STAT. 1914]]

                    (C) the number of participants that will be 
                revalidated during the following year.
SEC. 220. <<NOTE: 6 USC 970.>> NONCONTAINERIZED CARGO.

    The Secretary, acting through the Commissioner, shall consider the 
potential for participation in C-TPAT by importers of noncontainerized 
cargoes that otherwise meet the requirements under this subtitle.
SEC. 221. <<NOTE: 6 USC 971.>> C-TPAT PROGRAM MANAGEMENT.

    (a) In General.--The Secretary, acting through the Commissioner, 
shall establish sufficient internal quality controls and record 
management to support the management systems of C-TPAT. In managing the 
program, the Secretary shall ensure that the program includes:
            (1) Strategic plan.--A 5-year plan to identify outcome-based 
        goals and performance measures of the program.
            (2) Annual plan.--An annual plan for each fiscal year 
        designed to match available resources to the projected workload.
            (3) Standardized work program.--A standardized work program 
        to be used by agency personnel to carry out the certifications, 
        validations, and revalidations of participants. The Secretary 
        shall keep records and monitor staff hours associated with the 
        completion of each such review.

    (b) Documentation of Reviews.--The Secretary, acting through the 
Commissioner, shall maintain a record management system to document 
determinations on the reviews of each C-TPAT paricipant, including 
certifications, validations, and revalidations.
    (c) <<NOTE: Procedures.>> Confidential Information Safeguards.--In 
consultation with the Commercial Operations Advisory Committee, the 
Secretary, acting through the Commissioner, shall develop and implement 
procedures to ensure the protection of confidential data collected, 
stored, or shared with government agencies or as part of the 
application, certification, validation, and revalidation processes.

    (d) Resource Management Staffing Plan.--The Secretary, acting 
through the Commissioner, shall--
            (1) develop a staffing plan to recruit and train staff 
        (including a formalized training program) to meet the objectives 
        identified in the strategic plan of the C-TPAT program; and
            (2) provide cross-training in postincident trade resumption 
        for personnel who administer the C-TPAT program.

    (e) Report to Congress.--In connection with the President's annual 
budget submission for the Department, the Secretary shall report to the 
appropriate congressional committees on the progress made by the 
Commissioner to certify, validate, and revalidate C-TPAT participants. 
Such report shall be due on the same date that the President's budget is 
submitted to the Congress.
SEC. 222. <<NOTE: 6 USC 972.>> ADDITIONAL PERSONNEL.

    For fiscal years 2008 and 2009, the Commissioner shall increase by 
not less than 50 the number of full-time personnel engaged in the 
validation and revalidation of C-TPAT participants (over the number of 
such personnel on the last day of the previous fiscal year), and shall 
provide appropriate training and support to such additional personnel.

[[Page 120 STAT. 1915]]

SEC. 223. <<NOTE: 6 USC 973.>> AUTHORIZATION OF APPROPRIATIONS.

    (a) C-TPAT.--There are authorized to be appropriated to the United 
States Customs and Border Protection to carry out the provisions of 
sections 211 through 221 to remain available until expended--
            (1) $65,000,000 for fiscal year 2008;
            (2) $72,000,000 for fiscal year 2009; and
            (3) $75,600,000 for fiscal year 2010.

    (b) Additional Personnel.--In addition to any amounts otherwise 
appropriated to the United States Customs and Border Protection, there 
are authorized to be appropriated for the purpose of meeting the 
staffing requirement provided for in section 222, to remain available 
until expended--
            (1) $8,500,000 for fiscal year 2008;
            (2) $17,600,000 for fiscal year 2009;
            (3) $19,000,000 for fiscal year 2010;
            (4) $20,000,000 for fiscal year 2011; and
            (5) $21,000,000 for fiscal year 2012.

                  Subtitle C--Miscellaneous Provisions

SEC. 231. <<NOTE: 6 USC 981.>> PILOT INTEGRATED SCANNING SYSTEM.

    (a) Designations.-- <<NOTE: Deadline.>> Not later than 90 days after 
the date of the enactment of this Act, the Secretary shall designate 3 
foreign seaports through which containers pass or are transshipped to 
the United States for the establishment of pilot integrated scanning 
systems that couple nonintrusive imaging equipment and radiation 
detection equipment. In making the designations under this subsection, 
the Secretary shall consider 3 distinct ports with unique features and 
differing levels of trade volume.

    (b) Coordination.--The Secretary shall--
            (1) coordinate with the Secretary of Energy, as necessary, 
        to provide radiation detection equipment through the Department 
        of Energy's Second Line of Defense and Megaports programs; or
            (2) work with the private sector or, when possible, host 
        governments to obtain radiation detection equipment that meets 
        both the Department's and the Department of Energy's technical 
        specifications for such equipment.

    (c) <<NOTE: Deadline.>> Pilot System Implementation.--Not later than 
1 year after the date of the enactment of this Act, the Secretary shall 
achieve a full-scale implementation of the pilot integrated scanning 
system at the ports designated under subsection (a), which--
            (1) shall scan all containers destined for the United States 
        that are loaded in such ports;
            (2) shall electronically transmit the images and information 
        to appropriate United States Government personnel in the country 
        in which the port is located or in the United States for 
        evaluation and analysis;
            (3) shall resolve every radiation alarm according to 
        established Department procedures;
            (4) shall utilize the information collected to enhance the 
        Automated Targeting System or other relevant programs;
            (5) shall store the information for later retrieval and 
        analysis; and

[[Page 120 STAT. 1916]]

            (6) may provide an automated notification of questionable or 
        high-risk cargo as a trigger for further inspection by 
        appropriately trained personnel.

    (d) Report.--Not later than 180 days after achieving full-scale 
implementation under subsection (c), the Secretary, in consultation with 
the Secretary of State and, as appropriate, the Secretary of Energy, 
shall submit a report to the appropriate congressional committees, that 
includes--
            (1) an evaluation of the lessons derived from the pilot 
        system implemented under this subsection;
            (2) an analysis of the efficacy of the Automated Targeting 
        System or other relevant programs in utilizing the images 
        captured to examine high-risk containers;
            (3) an evaluation of the effectiveness of the integrated 
        scanning system in detecting shielded and unshielded nuclear and 
        radiological material;
            (4) an evaluation of software and other technologies that 
        are capable of automatically identifying potential anomalies in 
        scanned containers; and
            (5) an analysis of the need and feasibility of expanding the 
        integrated scanning system to other container security 
        initiative ports, including--
                    (A) an analysis of the infrastructure requirements;
                    (B) a projection of the effect on current average 
                processing speed of containerized cargo;
                    (C) an evaluation of the scalability of the system 
                to meet both current and future forecasted trade flows;
                    (D) the ability of the system to automatically 
                maintain and catalog appropriate data for reference and 
                analysis in the event of a transportation disruption;
                    (E) an analysis of requirements, including costs, to 
                install and maintain an integrated scanning system;
                    (F) the ability of administering personnel to 
                efficiently manage and utilize the data produced by a 
                nonintrusive scanning system;
                    (G) the ability to safeguard commercial data 
                generated by, or submitted to, a nonintrusive scanning 
                system; and
                    (H) an assessment of the reliability of currently 
                available technology to implement an integrated scanning 
                system.
SEC. 232. <<NOTE: 6 USC 982.>> SCREENING AND SCANNING OF CARGO 
                        CONTAINERS.

    (a) One Hundred Percent Screening of Cargo Containers and 100 
Percent Scanning of High-Risk Containers.--
            (1) Screening of cargo containers.--The Secretary shall 
        ensure that 100 percent of the cargo containers originating 
        outside the United States and unloaded at a United States 
        seaport undergo a screening to identify high-risk containers.
            (2) Scanning of high-risk containers.--The Secretary shall 
        ensure that 100 percent of the containers that have been 
        identified as high-risk under paragraph (1), or through other 
        means, are scanned or searched before such containers leave a 
        United States seaport facility.

    (b) Full-Scale Implementation.--The Secretary, in coordination with 
the Secretary of Energy and foreign partners, as appropriate, shall 
ensure integrated scanning systems are fully deployed

[[Page 120 STAT. 1917]]

to scan, using nonintrusive imaging equipment and radiation detection 
equipment, all containers entering the United States before such 
containers arrive in the United States as soon as possible, but not 
before the Secretary determines that the integrated scanning system--
            (1) meets the requirements set forth in section 231(c);
            (2) has a sufficiently low false alarm rate for use in the 
        supply chain;
            (3) is capable of being deployed and operated at ports 
        overseas;
            (4) is capable of integrating, as necessary, with existing 
        systems;
            (5) does not significantly impact trade capacity and flow of 
        cargo at foreign or United States ports; and
            (6) provides an automated notification of questionable or 
        high-risk cargo as a trigger for further inspection by 
        appropriately trained personnel.

    (c) Report.--Not later than 6 months after the submission of a 
report under section 231(d), and every 6 months thereafter, the 
Secretary shall submit a report to the appropriate congressional 
committees describing the status of full-scale deployment under 
subsection (b) and the cost of deploying the system at each foreign port 
at which the integrated scanning systems are deployed.

SEC. 233. <<NOTE: 6 USC 983.>> INTERNATIONAL COOPERATION AND 
            COORDINATION.

    (a) Inspection Technology and Training.--
            (1) In general.--The Secretary, in coordination with the 
        Secretary of State, the Secretary of Energy, and appropriate 
        representatives of other Federal agencies, may provide technical 
        assistance, equipment, and training to facilitate the 
        implementation of supply chain security measures at ports 
        designated under the Container Security Initiative.
            (2) Acquisition and training.--Unless otherwise prohibited 
        by law, the Secretary may--
                    (A) lease, loan, provide, or otherwise assist in the 
                deployment of nonintrusive inspection and radiation 
                detection equipment at foreign land and sea ports under 
                such terms and conditions as the Secretary prescribes, 
                including nonreimbursable loans or the transfer of 
                ownership of equipment; and
                    (B) provide training and technical assistance for 
                domestic or foreign personnel responsible for operating 
                or maintaining such equipment.

    (b) Actions and Assistance for Foreign Ports and United States 
Territories.--Section 70110 of title 46, United States Code, is 
amended--
            (1) by striking the section header and inserting the 
        following:

``Sec. 70110. Actions and assistance for foreign ports and United States 
                        territories'';

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

    ``(e) Assistance for Foreign Ports and United States Territories.--
            ``(1) In general.--The Secretary, in consultation with the 
        Secretary of Transportation, the Secretary of State, and the

[[Page 120 STAT. 1918]]

        Secretary of Energy, shall identify assistance programs that 
        could facilitate implementation of port security antiterrorism 
        measures in foreign countries and territories of the United 
        States. The Secretary shall establish a program to utilize the 
        programs that are capable of implementing port security 
        antiterrorism measures at ports in foreign countries and 
        territories of the United States that the Secretary finds to 
        lack effective antiterrorism measures.
            ``(2) Caribbean basin.--The Secretary, in coordination with 
        the Secretary of State and in consultation with the Organization 
        of American States and the Commandant of the Coast Guard, shall 
        place particular emphasis on utilizing programs to facilitate 
        the implementation of port security antiterrorism measures at 
        the ports located in the Caribbean Basin, as such ports pose 
        unique security and safety threats to the United States due to--
                    ``(A) the strategic location of such ports between 
                South America and the United States;
                    ``(B) the relative openness of such ports; and
                    ``(C) the significant number of shipments of 
                narcotics to the United States that are moved through 
                such ports.''.

    (c) Report on Security at Ports in the Caribbean Basin.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Comptroller General of the United 
        States shall submit a report to the appropriate congressional 
        committees on the security of ports in the Caribbean Basin.
            (2) Contents.--The report submitted under paragraph (1)--
                    (A) shall include--
                          (i) an assessment of the effectiveness of the 
                      measures employed to improve security at ports in 
                      the Caribbean Basin and recommendations for any 
                      additional measures to improve such security;
                          (ii) an estimate of the number of ports in the 
                      Caribbean Basin that will not be secured by 
                      January 1, 2007;
                          (iii) an estimate of the financial impact in 
                      the United States of any action taken pursuant to 
                      section 70110 of title 46, United States Code, 
                      that affects trade between such ports and the 
                      United States; and
                          (iv) an assessment of the additional resources 
                      and program changes that are necessary to maximize 
                      security at ports in the Caribbean Basin; and
                    (B) may be submitted in both classified and redacted 
                formats.

    (d) Clerical Amendment.--The chapter analysis for chapter 701 of 
title 46, United States Code, is amended by striking the item relating 
to section 70110 and inserting the following:

``70110. Actions and assistance for foreign ports and United States 
           territories.''.

SEC. 234. 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

[[Page 120 STAT. 1919]]

under subsection (a) and of procedures described in subsection (b) not 
less than once every 3 years.''.
SEC. 235. <<NOTE: 6 USC 984.>> PILOT PROGRAM TO IMPROVE THE 
                        SECURITY OF EMPTY CONTAINERS.

    (a) In General.--The Secretary shall conduct a 1-year pilot program 
to assess the risk posed by 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 the pilot program; and
            (2) the determination of the Secretary on whether to expand 
        the pilot program.
SEC. 236. <<NOTE: 6 USC 985.>> 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) System.--The Secretary shall develop a system to collect from 
and share appropriate risk information related to 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) 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.
    (e) 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.

[[Page 120 STAT. 1920]]

                        TITLE III--ADMINISTRATION

SEC. 301. OFFICE OF CARGO SECURITY POLICY.

    (a) Establishment.--Subtitle C of title IV of the Homeland Security 
Act of 2002 (6 U.S.C. 231 et seq.) is amended by adding at the end the 
following:
``SEC. 431. <<NOTE: 6 USC 239.>> OFFICE OF CARGO SECURITY POLICY.

    ``(a) Establishment.--There is established within the Department an 
Office of Cargo Security Policy (referred to in this section as the 
`Office').
    ``(b) Purpose.--The Office shall--
            ``(1) coordinate all Department policies relating to cargo 
        security; and
            ``(2) consult with stakeholders and coordinate with other 
        Federal agencies in the establishment of standards and 
        regulations and to promote best practices.

    ``(c) Director.--
            ``(1) Appointment.--The Office shall be headed by a 
        Director, who shall--
                    ``(A) be appointed by the Secretary; and
                    ``(B) report to the Assistant Secretary for Policy.
            ``(2) Responsibilities.--The Director shall--
                    ``(A) advise the Assistant Secretary for Policy in 
                the development of Department-wide policies regarding 
                cargo security;
                    ``(B) coordinate all policies relating to cargo 
                security among the agencies and offices within the 
                Department relating to cargo security; and
                    ``(C) coordinate the cargo security policies of the 
                Department with the policies of other executive 
                agencies.''.

    (b) <<NOTE: 6 USC 1001.>> Designation of Liaison Office of 
Department of State.--The Secretary of State shall designate a liaison 
office within the Department of State to assist the Secretary, as 
appropriate, in negotiating cargo security-related international 
agreements.

    (c) <<NOTE: 6 USC 239 note.>> Rule of Construction.--Nothing in this 
section shall be construed to affect--
            (1) the authorities, functions, or capabilities of the Coast 
        Guard to perform its missions; or
            (2) the requirement under section 888 of the Homeland 
        Security Act (6 U.S.C. 468) that those authorities, functions, 
        and capabilities be maintained intact.

    (d) Clerical Amendment.--The table of contents of the Homeland 
Security Act of 2002 (6 U.S.C. 101 et seq.) is amended by inserting 
after the item relating to section 430 the following:

``Sec. 431. Office of Cargo Security Policy.''.

SEC. 302. REAUTHORIZATION OF HOMELAND SECURITY SCIENCE AND 
                        TECHNOLOGY ADVISORY COMMITTEE.

    (a) In General.--Section 311(j) of the Homeland Security Act of 2002 
(6 U.S.C. 191(j)) is amended by striking ``3 years after the effective 
date of this Act'' and inserting ``on December 31, 2008''.

[[Page 120 STAT. 1921]]

    (b) <<NOTE: 6 USC 191 note.>> Effective Date.--The amendment made by 
subsection (a) shall be effective as if enacted on the date of the 
enactment of the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.).

    (c) <<NOTE: 6 USC 1002.>> Advisory Committee.--The Under Secretary 
for Science and Technology shall utilize the Homeland Security Science 
and Technology Advisory Committee, as appropriate, to provide outside 
expertise in advancing cargo security technology.
SEC. 303. <<NOTE: 6 USC 1003.>> RESEARCH, DEVELOPMENT, TEST, AND 
                        EVALUATION EFFORTS IN FURTHERANCE OF 
                        MARITIME AND CARGO SECURITY.

    (a) In General.--The Secretary shall--
            (1) direct research, development, testing, and evaluation 
        efforts in furtherance of maritime and cargo security;
            (2) coordinate with public and private sector entities to 
        develop and test technologies, and process innovations in 
        furtherance of these objectives; and
            (3) evaluate such technologies.

    (b) Coordination.--The Secretary, in coordination with the Under 
Secretary for Science and Technology, the Assistant Secretary for 
Policy, the Commandant of the Coast Guard, the Director for Domestic 
Nuclear Detection, the Chief Financial Officer, and the heads of other 
appropriate offices or entities of the Department, shall ensure that--
            (1) research, development, testing, and evaluation efforts 
        funded by the Department in furtherance of maritime and cargo 
        security are coordinated within the Department and with other 
        appropriate Federal agencies to avoid duplication of efforts; 
        and
            (2) the results of such efforts are shared throughout the 
        Department and with other Federal, State, and local agencies, as 
        appropriate.

                TITLE IV--AGENCY RESOURCES AND OVERSIGHT

SEC. 401. <<NOTE: 6 USC 115.>> TRADE AND CUSTOMS REVENUE FUNCTIONS 
                        OF THE DEPARTMENT.

    (a) Trade and Customs Revenue Functions.--
            (1) Designation of appropriate official.--The Secretary 
        shall designate an appropriate senior official in the office of 
        the Secretary who 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 the 
                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.
            (2) Director of trade policy.--There shall be a Director of 
        Trade Policy (in this subsection referred to as the 
        ``Director''),

[[Page 120 STAT. 1922]]

        who shall be subject to the direction and control of the 
        official designated pursuant to paragraph (1). The Director 
        shall--
                    (A) advise the official designated pursuant to 
                paragraph (1) regarding all aspects of Department 
                policies relating to the trade and customs revenue 
                functions of the Department;
                    (B) coordinate the development of Department-wide 
                policies regarding trade and customs revenue functions 
                and trade facilitation; and
                    (C) coordinate the trade and customs revenue-related 
                policies of the Department with the policies of other 
                Federal departments and agencies.

    (b) Study; Report.--
            (1) In general.--The Comptroller General of the United 
        States 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 United States 
                Customs Service have been consolidated with other 
                functions of the Department (including the assignment of 
                noncustoms revenue functions to personnel responsible 
                for customs revenue collection), discontinued, or 
                diminished following the transfer of the United States 
                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 United States 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.
            (3) 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 the study conducted under subsection (a).
            (4) <<NOTE: Deadline.>> Maintenance of functions.--Not later 
        than September 30, 2007, the Secretary shall ensure that the 
        requirements of section 412(b) of the Homeland Security Act of 
        2002 (6 U.S.C. 212(b)) are fully satisfied and shall report to 
        the Committee on Finance of the Senate and the Committee on Ways 
        and Means of the House of Representatives regarding 
        implementation of this paragraph.
            (5) 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)).

    (c) Consultation on Trade and Customs Revenue Functions.--
            (1) Business community consultations.--The Secretary shall 
        consult with representatives of the business community involved 
        in international trade, including seeking the advice and 
        recommendations of the Commercial Operations Advisory Committee, 
        on Department policies and actions that have a

[[Page 120 STAT. 1923]]

        significant impact on international trade and customs revenue 
        functions.
            (2) Congressional consultation and notification.--
                    (A) In general.--Subject to subparagraph (B), the 
                Secretary shall notify the appropriate congressional 
                committees not later than 30 days prior to the 
                finalization of any Department policies, initiatives, or 
                actions that will have a major impact on trade and 
                customs revenue functions. Such notifications shall 
                include a description of the proposed policies, 
                initiatives, or actions and any comments or 
                recommendations provided by the Commercial Operations 
                Advisory Committee and other relevant groups regarding 
                the proposed policies, initiatives, or actions.
                    (B) Exception.--If the Secretary determines that it 
                is important to the national security interest of the 
                United States to finalize any Department policies, 
                initiatives, or actions prior to the consultation 
                described in subparagraph (A), the Secretary shall--
                          (i) notify and provide any recommendations of 
                      the Commercial Operations Advisory Committee 
                      received to the appropriate congressional 
                      committees not later than 45 days after the date 
                      on which the policies, initiatives, or actions are 
                      finalized; and
                          (ii) to the extent appropriate, modify the 
                      policies, initiatives, or actions based upon the 
                      consultations with the appropriate congressional 
                      committees.

    (d) Notification of Reorganization of Customs Revenue Functions.--
            (1) In general.--Not less than 45 days prior to any change 
        in the organization of any of the customs revenue functions of 
        the Department, the Secretary shall notify the Committee on 
        Appropriations, the Committee on Finance, and the Committee on 
        Homeland Security and Governmental Affairs of the Senate, and 
        the Committee on Appropriations, the Committee on Homeland 
        Security, and the Committee on Ways and Means of the House of 
        Representatives of the specific assets, functions, or personnel 
        to be transferred as part of such reorganization, and the reason 
        for such transfer. The notification shall also include--
                    (A) an explanation of how trade enforcement 
                functions will be impacted by the reorganization;
                    (B) an explanation of how the reorganization meets 
                the requirements of section 412(b) of the Homeland 
                Security Act of 2002 (6 U.S.C. 212(b)) that the 
                Department not diminish the customs revenue and trade 
                facilitation functions formerly performed by the United 
                States Customs Service; and
                    (C) any comments or recommendations provided by the 
                Commercial Operations Advisory Committee regarding such 
                reorganization.
            (2) Analysis.--Any congressional committee referred to in 
        paragraph (1) may request that the Commercial Operations 
        Advisory Committee provide a report to the committee analyzing 
        the impact of the reorganization and providing any 
        recommendations for modifying the reorganization.
            (3) Report.--Not later than 1 year after any reorganization 
        referred to in paragraph (1) takes place, the Secretary, in

[[Page 120 STAT. 1924]]

        consultation with the Commercial Operations Advisory Committee, 
        shall submit a report to the Committee on Finance of the Senate 
        and the Committee on Ways and Means of the House of 
        Representatives. Such report shall include an assessment of the 
        impact of, and any suggested modifications to, such 
        reorganization.
SEC. 402. OFFICE OF INTERNATIONAL TRADE; OVERSIGHT.

    Section 2 of the Act of March 3, 1927 (44 Stat. 1381, chapter 348; 
19 U.S.C. 2072), is amended by adding at the end the following:
    ``(d) Office of International Trade.--
            ``(1) Establishment.--There is established within the United 
        States Customs and Border Protection an Office of International 
        Trade that shall be headed by an Assistant Commissioner.
            ``(2) Transfer of assets, functions, and personnel; 
        elimination of offices.--
                    ``(A) <<NOTE: Abolished.>> Office of strategic 
                trade.--
                          ``(i) <<NOTE: Deadline.>> In general.--Not 
                      later than 90 days after the date of the enactment 
                      of the SAFE Port Act, the Commissioner shall 
                      transfer the assets, functions, and personnel of 
                      the Office of Strategic Trade to the Office of 
                      International Trade established pursuant to 
                      paragraph (1) and the Office of Strategic Trade 
                      shall be abolished.
                          ``(ii) Limitation on funds.--No funds 
                      appropriated to the United States Customs and 
                      Border Protection may be used to transfer the 
                      assets, functions, or personnel of the Office of 
                      Strategic Trade, to an office other than the 
                      office established pursuant to paragraph (1) of 
                      this subsection.
                    ``(B) <<NOTE: Abolished.>> Office of regulations and 
                rulings.--
                          ``(i) In general.-- <<NOTE: Deadline.>> Not 
                      later than 90 days after the date of the enactment 
                      of the SAFE Port Act, the Commissioner shall 
                      transfer the assets, functions, and personnel of 
                      the Office of Regulations and Rulings to the 
                      Office of International Trade established pursuant 
                      to paragraph (1) and the Office of Regulations and 
                      Rulings shall be abolished.
                          ``(ii) Limitation on funds.--No funds 
                      appropriated to the United States Customs and 
                      Border Protection may be used to transfer the 
                      assets, functions, or personnel of the Office of 
                      Regulations and Rulings, to an office other than 
                      the office established pursuant to paragraph (1) 
                      of this subsection.
                    ``(C) Other transfers.--The Commissioner is 
                authorized to transfer any other assets, functions, or 
                personnel within the United States Customs and Border 
                Protection to the Office of International Trade 
                established pursuant to paragraph 
                (1). <<NOTE: Notification.>> Not less than 45 days prior 
                to each such transfer, the Commissioner shall notify the 
                Committee on Appropriations, the Committee on Finance, 
                and the Committee on Homeland Security and Governmental 
                Affairs of the Senate and the Committee on 
                Appropriations, the Committee on Homeland Security, and 
                the Committee on Ways and Means of the House of 
                Representatives of the specific assets, functions, or 
                personnel to be transferred,

[[Page 120 STAT. 1925]]

                and the reason for such transfer. Such notification 
                shall also include--
                          ``(i) an explanation of how trade enforcement 
                      functions will be impacted by the reorganization;
                          ``(ii) an explanation of how the 
                      reorganization meets the requirements of section 
                      412(b) of the Homeland Security Act of 2002 (6 
                      U.S.C. 212(b)) that the Department of Homeland 
                      Security not diminish the customs revenue and 
                      trade facilitation functions formerly performed by 
                      the United States Customs Service; and
                          ``(iii) any comments or recommendations 
                      provided by the Commercial Operations Advisory 
                      Committee regarding such reorganization.
                    ``(D) Report.--Not later than 1 year after any 
                reorganization pursuant to subparagraph (C) takes place, 
                the Commissioner, in consultation with the Commercial 
                Operations Advisory Committee, shall report to the 
                Committee on Finance of the Senate and the Committee on 
                Ways and Means of the House of Representatives. Such 
                report shall include an assessment of the impact of, and 
                any suggested modifications to, such reorganization.
                    ``(E) Limitation on authority.--Notwithstanding any 
                other provision of law, the Commissioner shall not 
                transfer any assets, functions, or personnel from United 
                States ports of entry, associated with the enforcement 
                of laws relating to trade in textiles and apparel, to 
                the Office of International Trade established pursuant 
                to paragraph (1), until the following conditions are 
                met:
                          ``(i) The Commissioner submits the initial 
                      Resource Allocation Model required by section 
                      301(h) of the Customs and Procedural Reform and 
                      Simplification Act of 1978 (19 U.S.C. 2075) and 
                      includes in such Resource Allocation Model a 
                      section addressing the allocation of assets, 
                      functions, and personnel associated with the 
                      enforcement of laws relating to trade in textiles 
                      and apparel.
                          ``(ii) The Commissioner consults with the 
                      Committee on Finance of the Senate and the 
                      Committee on Ways and Means of the House of 
                      Representatives regarding any subsequent transfer 
                      of assets, functions, or personnel associated with 
                      the enforcement of laws relating to trade in 
                      textiles and apparel, not less than 45 days prior 
                      to such transfer.
                    ``(F) Limitation on appropriations.--No funds 
                appropriated to the United States Customs and Border 
                Protection may be used to transfer the assets, 
                functions, or personnel associated with the enforcement 
                of laws relating to trade in textiles and apparel, 
                before the Commissioner consults with the congressional 
                committees pursuant to subparagraph (E)(ii).

    ``(e) International Trade Committee.--
            ``(1) Establishment.--The Commissioner shall establish an 
        International Trade Committee, to be chaired by the 
        Commissioner, and to include the Deputy Commissioner, the 
        Assistant Commissioner in the Office of Field Operations, the 
        Assistant Commissioner in the Office of Finance, the Assistant

[[Page 120 STAT. 1926]]

        Commissioner in the Office of International Affairs, the 
        Assistant Commissioner in the Office of International Trade, the 
        Director of the Office of Trade Relations, and any other 
        official determined by the Commissioner to be important to the 
        work of the Committee.
            ``(2) Responsibilities.--The International Trade Committee 
        shall--
                    ``(A) be responsible for advising the Commissioner 
                with respect to the commercial customs and trade 
                facilitation functions of the United States Customs and 
                Border Protection;
                    ``(B) assist the Commissioner in coordinating with 
                the Secretary regarding commercial customs and trade 
                facilitation functions; and
                    ``(C) oversee the operation of all programs and 
                systems that are involved in the assessment and 
                collection of duties, bonds, and other charges or 
                penalties associated with the entry of cargo into the 
                United States, or the export of cargo from the United 
                States, including the administration of duty drawback 
                and the collection of antidumping and countervailing 
                duties.
            ``(3) Annual report.--Not later than 30 days after the end 
        of each fiscal year, the International Trade Committee shall 
        submit a report to the Committee on Finance of the Senate and 
        the Committee on Ways and Means of the House of Representatives. 
        The report shall--
                    ``(A) detail the activities of the International 
                Trade Committee during the preceding fiscal year; and
                    ``(B) identify the priorities of the International 
                Trade Committee for the fiscal year in which the report 
                is filed.

    ``(f) Definition.--In this section:
            ``(1) Commissioner.--The term `Commissioner' means the 
        Commissioner responsible for the United States Customs and 
        Border Protection in the Department of Homeland Security.
            ``(2) Commercial operations advisory committee.--The term 
        `Commercial Operations Advisory Committee' means the Advisory 
        Committee established pursuant to section 9503(c) of the Omnibus 
        Budget Reconciliation Act of 1987 (19 U.S.C. 2071 note) or any 
        successor committee.''.
SEC. 403. RESOURCES.

    Section 301 of the Customs Procedural Reform and Simplification Act 
of 1978 (19 U.S.C. 2075) is amended by adding at the end the following:
    ``(h) Resource Allocation Model.--
            ``(1) <<NOTE: Deadlines.>> Resource allocation model.--Not 
        later than June 30, 2007, and every 2 years thereafter, the 
        Commissioner shall prepare and submit to the Committee on 
        Finance of the Senate and the Committee on Ways and Means of the 
        House of Representatives a Resource Allocation Model to 
        determine the optimal staffing levels required to carry out the 
        commercial operations of United States Customs and Border 
        Protection, including commercial inspection and release of cargo 
        and the revenue functions described in section 412(b)(2) of the 
        Homeland Security Act of 2002 (6 U.S.C. 212(b)(2)). The Model 
        shall comply with the requirements of section 412(b)(1) of such 
        Act and shall take into account previous staffing models, 
        historic

[[Page 120 STAT. 1927]]

        and projected trade volumes, and 
        trends. <<NOTE: Applicability.>> The Resource Allocation Model 
        shall apply both risk-based and random sampling approaches for 
        determining adequate staffing needs for priority trade 
        functions, including--
                    ``(A) performing revenue functions;
                    ``(B) enforcing antidumping and countervailing duty 
                laws;
                    ``(C) protecting intellectual property rights;
                    ``(D) enforcing provisions of law relating to trade 
                in textiles and apparel;
                    ``(E) conducting agricultural inspections;
                    ``(F) enforcing fines, penalties, and forfeitures; 
                and
                    ``(G) facilitating trade.
            ``(2) Personnel.--
                    ``(A) <<NOTE: Deadline. Reports.>> In general.--Not 
                later than September 30, 2007, the Commissioner shall 
                ensure that the requirements of section 412(b) of the 
                Homeland Security Act of 2002 (6 U.S.C. 212(b)) are 
                fully satisfied and shall report to the Committee on 
                Finance of the Senate and the Committee on Ways and 
                Means of the House of Representatives regarding the 
                implementation of this subparagraph.
                    ``(B) Customs and border protection officers.--The 
                initial Resource Allocation Model required pursuant to 
                paragraph (1) shall provide for the hiring of a minimum 
                of 200 additional Customs and Border Protection Officers 
                per year for each of the fiscal years 2008 through 2012. 
                The Commissioner shall hire such additional Officers 
                subject to the appropriation of funds to pay for the 
                salaries and expenses of such Officers. In assigning the 
                1,000 additional Officers authorized by this 
                subparagraph, the Commissioner shall--
                          ``(i) consider the volume of trade and the 
                      incidence of nonvoluntarily disclosed customs and 
                      trade law violations in addition to security 
                      priorities among United States ports of entry; and
                          ``(ii) <<NOTE: Deadline.>> before October 1, 
                      2010, assign at least 10 additional Officers among 
                      each service port and the ports of entry serviced 
                      by such service port, except as provided in 
                      subparagraph (C).
                    ``(C) Assignment.--In assigning such Officers 
                pursuant to subparagraph (B), the Commissioner shall 
                consult with the port directors of each service port and 
                the other ports of entry serviced by such service port. 
                The Commissioner shall not assign an Officer to a port 
                of entry pursuant to subparagraph (B)(ii) if the port 
                director of the service port that services such port of 
                entry certifies to the Commissioner that an additional 
                Officer is not needed at such port of entry.
                    ``(D) Report.--Not later than 60 days after the 
                beginning of each of the fiscal years 2008 through 2012, 
                the Commissioner shall submit a report to the Committee 
                on Finance of the Senate, the Committee on Homeland 
                Security and Governmental Affairs of the Senate, the 
                Committee on Homeland Security of the House of 
                Representatives, and the Committee on Ways and Means of 
                the House of Representatives, that describes how the 
                additional Officers authorized under subparagraph (B) 
                will be allocated

[[Page 120 STAT. 1928]]

                among the ports of entry in the United States in 
                accordance with subparagraph (C).
            ``(3) Authorization of appropriations.--In addition to any 
        monies hereafter appropriated to United States Customs and 
        Border Protection in the Department of Homeland Security, there 
        are authorized to be appropriated for the purpose of meeting the 
        requirements of paragraph (2)(B), to remain available until 
        expended--
                    ``(A) $36,000,000 for fiscal year 2008;
                    ``(B) $75,000,000 for fiscal year 2009;
                    ``(C) $118,000,000 for fiscal year 2010;
                    ``(D) $165,000,000 for fiscal year 2011; and
                    ``(E) $217,000,000 for fiscal year 2012.
            ``(4) Report.--Not later than 30 days after the end of each 
        fiscal year, the Commissioner shall report to the Committee on 
        Finance of the Senate and the Committee on Ways and Means of the 
        House of Representatives on the resources directed to commercial 
        and trade facilitation functions within the Office of Field 
        Operations for the preceding fiscal year. Such information shall 
        be reported for each category of personnel within the Office of 
        Field Operations.
            ``(5) <<NOTE: Deadline.>> Regulations to implement trade 
        agreements.--Not later than 30 days after the date of the 
        enactment of the SAFE Port Act, the Commissioner shall designate 
        and maintain not less than 5 attorneys within the Office of 
        International Trade established pursuant to section 2 of the Act 
        of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072), 
        with responsibility for the prompt development and promulgation 
        of regulations necessary to implement any trade agreement 
        entered into by the United States, in addition to any other 
        responsibilities assigned by the Commissioner.
            ``(6) Definition.--In this subsection, the term 
        `Commissioner' means the Commissioner responsible for United 
        States Customs and Border Protection in the Department of 
        Homeland Security.''.
SEC. 404. NEGOTIATIONS.

    Section 629 of the Tariff Act of 1930 (19 U.S.C. 1629) is amended by 
adding at the end the following:
    ``(h) Customs Procedures and Commitments.--
            ``(1) In general.--The Secretary of Homeland Security, the 
        United States Trade Representative, and other appropriate 
        Federal officials shall work through appropriate international 
        organizations including the World Customs Organization (WCO), 
        the World Trade Organization (WTO), the International Maritime 
        Organization, and the Asia-Pacific Economic Cooperation, to 
        align, to the extent practicable, customs procedures, standards, 
        requirements, and commitments in order to facilitate the 
        efficient flow of international trade.
            ``(2) United states trade representative.--
                    ``(A) In general.--The United States Trade 
                Representative shall seek commitments in negotiations in 
                the WTO regarding the articles of GATT 1994 that are 
                described in subparagraph (B) that make progress in 
                achieving--
                          ``(i) harmonization of import and export data 
                      collected by WTO members for customs purposes, to 
                      the extent practicable;

[[Page 120 STAT. 1929]]

                          ``(ii) enhanced procedural fairness and 
                      transparency with respect to the regulation of 
                      imports and exports by WTO members;
                          ``(iii) transparent standards for the 
                      efficient release of cargo by WTO members, to the 
                      extent practicable; and
                          ``(iv) the protection of confidential 
                      commercial data.
                    ``(B) Articles described.--The articles of the GATT 
                1994 described in this subparagraph are the following:
                          ``(i) Article V (relating to transit).
                          ``(ii) Article VIII (relating to fees and 
                      formalities associated with importation and 
                      exportation).
                          ``(iii) Article X (relating to publication and 
                      administration of trade regulations).
                    ``(C) GATT 1994.--The term `GATT 1994' means the 
                General Agreement on Tariff and Trade annexed to the WTO 
                Agreement.
            ``(3) Customs.--The Secretary of Homeland Security, acting 
        through the Commissioner and in consultation with the United 
        States Trade Representative, shall work with the WCO to 
        facilitate the efficient flow of international trade, taking 
        into account existing international agreements and the 
        negotiating objectives of the WTO. The Commissioner shall work 
        to--
                    ``(A) harmonize, to the extent practicable, import 
                data collected by WCO members for customs purposes;
                    ``(B) automate and harmonize, to the extent 
                practicable, the collection and storage of commercial 
                data by WCO members;
                    ``(C) develop, to the extent practicable, 
                transparent standards for the release of cargo by WCO 
                members;
                    ``(D) develop and harmonize, to the extent 
                practicable, standards, technologies, and protocols for 
                physical or nonintrusive examinations that will 
                facilitate the efficient flow of international trade; 
                and
                    ``(E) ensure the protection of confidential 
                commercial data.
            ``(4) Definition.--In this subsection, the term 
        `Commissioner' means the Commissioner responsible for the United 
        States Customs and Border Protection in the Department of 
        Homeland Security.''.
SEC. 405. INTERNATIONAL TRADE DATA SYSTEM.

    Section 411 of the Tariff Act of 1930 (19 U.S.C. 1411) is amended by 
adding at the end the following:
    ``(d) International Trade Data System.--
            ``(1) Establishment.--
                    ``(A) In general.--The Secretary of the Treasury (in 
                this subsection, referred to as the `Secretary') shall 
                oversee the establishment of an electronic trade data 
                interchange system to be known as the `International 
                Trade Data System' (ITDS). <<NOTE: Deadline.>>  The ITDS 
                shall be implemented not later than the date that the 
                Automated Commercial Environment (commonly referred to 
                as `ACE') is fully implemented.
                    ``(B) Purpose.--The purpose of the ITDS is to 
                eliminate redundant information requirements, to 
                efficiently regulate the flow of commerce, and to 
                effectively enforce laws and regulations relating to 
                international trade, by establishing

[[Page 120 STAT. 1930]]

                a single portal system, operated by the United States 
                Customs and Border Protection, for the collection and 
                distribution of standard electronic import and export 
                data required by all participating Federal agencies.
                    ``(C) Participation.--
                          ``(i) In general.--All Federal agencies that 
                      require documentation for clearing or licensing 
                      the importation and exportation of cargo shall 
                      participate in the ITDS.
                          ``(ii) Waiver.--The Director of the Office of 
                      Management and Budget may waive, in whole or in 
                      part, the requirement for participation for any 
                      Federal agency based on the vital national 
                      interest of the United States.
                    ``(D) Consultation.--The Secretary shall consult 
                with and assist the United States Customs and Border 
                Protection and other agencies in the transition from 
                paper to electronic format for the submission, issuance, 
                and storage of documents relating to data required to 
                enter cargo into the United States. In so doing, the 
                Secretary shall also consult with private sector 
                stakeholders, including the Commercial Operations 
                Advisory Committee, in developing uniform data 
                submission requirements, procedures, and schedules, for 
                the ITDS.
                    ``(E) Coordination.--The Secretary shall be 
                responsible for coordinating the operation of the ITDS 
                among the participating agencies and the office within 
                the United States Customs and Border Protection that is 
                responsible for maintaining the ITDS.
            ``(2) Data elements.--
                    ``(A) In general.--The Interagency Steering 
                Committee (established under paragraph (3)) shall, in 
                consultation with the agencies participating in the 
                ITDS, define the standard set of data elements to be 
                collected, stored, and shared in the ITDS, consistent 
                with laws applicable to the collection and protection of 
                import and export information. The Interagency Steering 
                Committee shall periodically review the data elements in 
                order to update the standard set of data elements, as 
                necessary.
                    ``(B) Commitments and obligations.--The Interagency 
                Steering Committee shall ensure that the ITDS data 
                requirements are compatible with the commitments and 
                obligations of the United States as a member of the 
                World Customs Organization (WCO) and the World Trade 
                Organization (WTO) for the entry and movement of cargo.
            ``(3) <<NOTE: Estabishment.>> Interagency steering 
        committee.--There is established an Interagency Steering 
        Committee (in this section, referred to as the `Committee'). The 
        members of the Committee shall include the Secretary (who shall 
        serve as the chairperson of the Committee), the Director of the 
        Office of Management and Budget, and the head of each agency 
        participating in the ITDS. The Committee shall assist the 
        Secretary in overseeing the implementation of, and participation 
        in, the ITDS.
            ``(4) <<NOTE: President.>> Report.--The President shall 
        submit a report before the end of each fiscal year to the 
        Committee on Finance of the Senate and the Committee on Ways and 
        Means of the House of Representatives. Each report shall include 
        information on--

[[Page 120 STAT. 1931]]

                    ``(A) the status of the ITDS implementation;
                    ``(B) the extent of participation in the ITDS by 
                Federal agencies;
                    ``(C) the remaining barriers to any agency's 
                participation;
                    ``(D) the consistency of the ITDS with applicable 
                standards established by the World Customs Organization 
                and the World Trade Organization;
                    ``(E) recommendations for technological and other 
                improvements to the ITDS; and
                    ``(F) the status of the development, implementation, 
                and management of the Automated Commercial Environment 
                within the United States Customs and Border Protection.
            ``(5) Sense of congress.--It is the sense of Congress that 
        agency participation in the ITDS is an important priority of the 
        Federal Government and that the Secretary shall coordinate the 
        operation of the ITDS closely among the participating agencies 
        and the office within the United States Customs and Border 
        Protection that is responsible for maintaining the ITDS.
            ``(6) Construction.--Nothing in this section shall be 
        construed as amending or modifying subsection (g) of section 301 
        of title 13, United States Code.
            ``(7) Definition.--The term `Commercial Operations Advisory 
        Committee' means the Advisory Committee established pursuant to 
        section 9503(c) of the Omnibus Budget Reconciliation Act of 1987 
        (19 U.S.C. 2071 note) or any successor committee.''.
SEC. 406. IN-BOND CARGO.

    Title IV of the Tariff Act of 1930 is amended by inserting after 
section 553 the following:
``SEC. 553A. <<NOTE: 19 USC 1553-1.>> REPORT ON IN-BOND CARGO.

    ``(a) Report.--Not later than June 30, 2007, the Commissioner shall 
submit a report to the Committee on Commerce, Science, and 
Transportation of the Senate, the Committee on Finance of the Senate, 
the Committee on Homeland Security and Governmental Affairs of the 
Senate, the Committee on Homeland Security of the House of 
Representatives, the Committee on Transportation and Infrastructure of 
the House of Representatives, and the Committee on Ways and Means of the 
House of Representatives that includes--
            ``(1) a plan for closing in-bond entries at the port of 
        arrival;
            ``(2) an assessment of the personnel required to ensure 100 
        percent reconciliation of in-bond entries between the port of 
        arrival and the port of destination or exportation;
            ``(3) an assessment of the status of investigations of 
        overdue in-bond shipments and an evaluation of the resources 
        required to ensure adequate investigation of overdue in-bond 
        shipments;
            ``(4) a plan for tracking in-bond cargo within the Automated 
        Commercial Environment (ACE);
            ``(5) an assessment of whether any particular technologies 
        should be required in the transport of in-bond cargo;
            ``(6) an assessment of whether ports of arrival should 
        require any additional information regarding shipments of in-
        bond cargo;

[[Page 120 STAT. 1932]]

            ``(7) an evaluation of the criteria for targeting and 
        examining in-bond cargo; and
            ``(8) an assessment of the feasibility of reducing the 
        transit time for in-bond shipments, including an assessment of 
        the impact of such a change on domestic and international trade.

    ``(b) Definition.--In this section, the term `Commissioner' means 
the Commissioner responsible for the United States Customs and Border 
Protection in the Department of Homeland Security.''.
SEC. 407. SENSE OF THE SENATE.

    It is the sense of the Senate that nothing in sections 111 through 
114, 121, and 201 through 236, or the amendments made by such sections, 
shall be construed to affect the jurisdiction of any Standing Committee 
of the Senate.

               TITLE V--DOMESTIC NUCLEAR DETECTION OFFICE

SEC. 501. ESTABLISHMENT OF DOMESTIC NUCLEAR DETECTION OFFICE.

    (a) Establishment of Office.--The Homeland Security Act of 2002 (6 
U.S.C. 101 et seq.) is amended by adding at the end the following:

            ``TITLE XVIII--DOMESTIC NUCLEAR DETECTION OFFICE

``SEC. 1801. <<NOTE: 6 USC 591.>> DOMESTIC NUCLEAR DETECTION 
                        OFFICE.

    ``(a) Establishment.--There shall be established in the Department a 
Domestic Nuclear Detection Office (referred to in this title as the 
`Office'). The Secretary may request that the Secretary of Defense, the 
Secretary of Energy, the Secretary of State, the Attorney General, the 
Nuclear Regulatory Commission, and the directors of other Federal 
agencies, including elements of the Intelligence Community, provide for 
the reimbursable detail of personnel with relevant expertise to the 
Office.
    ``(b) <<NOTE: President.>> Director.--The Office shall be headed by 
a Director for Domestic Nuclear Detection, who shall be appointed by the 
President.
``SEC. 1802. <<NOTE: 6 USC 592.>> MISSION OF OFFICE.

    ``(a) Mission.--The Office shall be responsible for coordinating 
Federal efforts to detect and protect against the unauthorized 
importation, possession, storage, transportation, development, or use of 
a nuclear explosive device, fissile material, or radiological material 
in the United States, and to protect against attack using such devices 
or materials against the people, territory, or interests of the United 
States and, to this end, shall--
            ``(1) serve as the primary entity of the United States 
        Government to further develop, acquire, and support the 
        deployment of an enhanced domestic system to detect and report 
        on attempts to import, possess, store, transport, develop, or 
        use an unauthorized nuclear explosive device, fissile material, 
        or radiological material in the United States, and improve that 
        system over time;

[[Page 120 STAT. 1933]]

            ``(2) enhance and coordinate the nuclear detection efforts 
        of Federal, State, local, and tribal governments and the private 
        sector to ensure a managed, coordinated response;
            ``(3) establish, with the approval of the Secretary and in 
        coordination with the Attorney General, the Secretary of 
        Defense, and the Secretary of Energy, additional protocols and 
        procedures for use within the United States to ensure that the 
        detection of unauthorized nuclear explosive devices, fissile 
        material, or radiological material is promptly reported to the 
        Attorney General, the Secretary, the Secretary of Defense, the 
        Secretary of Energy, and other appropriate officials or their 
        respective designees for appropriate action by law enforcement, 
        military, emergency response, or other authorities;
            ``(4) develop, with the approval of the Secretary and in 
        coordination with the Attorney General, the Secretary of State, 
        the Secretary of Defense, and the Secretary of Energy, an 
        enhanced global nuclear detection architecture with 
        implementation under which--
                    ``(A) the Office will be responsible for the 
                implementation of the domestic portion of the global 
                architecture;
                    ``(B) the Secretary of Defense will retain 
                responsibility for implementation of Department of 
                Defense requirements within and outside the United 
                States; and
                    ``(C) the Secretary of State, the Secretary of 
                Defense, and the Secretary of Energy will maintain their 
                respective responsibilities for policy guidance and 
                implementation of the portion of the global architecture 
                outside the United States, which will be implemented 
                consistent with applicable law and relevant 
                international arrangements;
            ``(5) ensure that the expertise necessary to accurately 
        interpret detection data is made available in a timely manner 
        for all technology deployed by the Office to implement the 
        global nuclear detection architecture;
            ``(6) conduct, support, coordinate, and encourage an 
        aggressive, expedited, evolutionary, and transformational 
        program of research and development to generate and improve 
        technologies to detect and prevent the illicit entry, transport, 
        assembly, or potential use within the United States of a nuclear 
        explosive device or fissile or radiological material, and 
        coordinate with the Under Secretary for Science and Technology 
        on basic and advanced or transformational research and 
        development efforts relevant to the mission of both 
        organizations;
            ``(7) carry out a program to test and evaluate technology 
        for detecting a nuclear explosive device and fissile or 
        radiological material, in coordination with the Secretary of 
        Defense and the Secretary of Energy, as appropriate, and 
        establish performance metrics for evaluating the effectiveness 
        of individual detectors and detection systems in detecting such 
        devices or material--
                    ``(A) under realistic operational and environmental 
                conditions; and
                    ``(B) against realistic adversary tactics and 
                countermeasures;
            ``(8) support and enhance the effective sharing and use of 
        appropriate information generated by the intelligence community, 
        law enforcement agencies, counterterrorism

[[Page 120 STAT. 1934]]

        community, other government agencies, and foreign governments, 
        as well as provide appropriate information to such entities;
            ``(9) further enhance and maintain continuous awareness by 
        analyzing information from all Office mission-related detection 
        systems; and
            ``(10) perform other duties as assigned by the Secretary.
``SEC. 1803. <<NOTE: 6 USC 593.>> HIRING AUTHORITY.

    ``In hiring personnel for the Office, the Secretary shall have the 
hiring and management authorities provided in section 1101 of the Strom 
Thurmond National Defense Authorization Act for Fiscal Year 1999 (5 
U.S.C. 3104 note). The term of appointments for employees under 
subsection (c)(1) of such section may not exceed 5 years before granting 
any extension under subsection (c)(2) of such section.
``SEC. 1804. <<NOTE: 6 USC 594.>> TESTING AUTHORITY.

    ``(a) In General.--The Director shall coordinate with the 
responsible Federal agency or other entity to facilitate the use by the 
Office, by its contractors, or by other persons or entities, of existing 
Government laboratories, centers, ranges, or other testing facilities 
for the testing of materials, equipment, models, computer software, and 
other items as may be related to the missions identified in section 
1802. Any such use of Government facilities shall be carried out in 
accordance with all applicable laws, regulations, and contractual 
provisions, including those governing security, safety, and 
environmental protection, including, when applicable, the provisions of 
section 309. The Office may direct that private sector entities 
utilizing Government facilities in accordance with this section pay an 
appropriate fee to the agency that owns or operates those facilities to 
defray additional costs to the Government resulting from such use.
    ``(b) Confidentiality of Test Results.--The results of tests 
performed with services made available shall be confidential and shall 
not be disclosed outside the Federal Government without the consent of 
the persons for whom the tests are performed.
    ``(c) Fees.--Fees for services made available under this section 
shall not exceed the amount necessary to recoup the direct and indirect 
costs involved, such as direct costs of utilities, contractor support, 
and salaries of personnel that are incurred by the United States to 
provide for the testing.
    ``(d) Use of Fees.--Fees received for services made available under 
this section may be credited to the appropriation from which funds were 
expended to provide such services.
``SEC. 1805. <<NOTE: 6 USC 595.>> RELATIONSHIP TO OTHER DEPARTMENT 
                        ENTITIES AND FEDERAL AGENCIES.

    ``The authority of the Director under this title shall not affect 
the authorities or responsibilities of any officer of the Department or 
of any officer of any other department or agency of the United States 
with respect to the command, control, or direction of the functions, 
personnel, funds, assets, and liabilities of any entity within the 
Department or any Federal department or agency.

[[Page 120 STAT. 1935]]

``SEC. 1806. <<NOTE: 6 USC 596.>> CONTRACTING AND GRANT MAKING 
                        AUTHORITIES.

    ``The Secretary, acting through the Director for Domestic Nuclear 
Detection, in carrying out the responsibilities under paragraphs (6) and 
(7) of section 1802(a), shall--
            ``(1) operate extramural and intramural programs and 
        distribute funds through grants, cooperative agreements, and 
        other transactions and contracts;
            ``(2) ensure that activities under paragraphs (6) and (7) of 
        section 1802(a) include investigations of radiation detection 
        equipment in configurations suitable for deployment at seaports, 
        which may include underwater or water surface detection 
        equipment and detection equipment that can be mounted on cranes 
        and straddle cars used to move shipping containers; and
            ``(3) have the authority to establish or contract with 1 or 
        more federally funded research and development centers to 
        provide independent analysis of homeland security issues and 
        carry out other responsibilities under this title.''.

    (b) Technical and Conforming Amendments.--The Homeland Security Act 
of 2002 (6 U.S.C. 101 et seq.) is amended--
            (1) in section 103(d) (6 U.S.C. 113(d)), by adding at the 
        end the following:
            ``(5) A Director for Domestic Nuclear Detection.'';
            (2) in section 302 (6 U.S.C. 182)--
                    (A) in paragraph (2), by striking ``radiological, 
                nuclear''; and
                    (B) in paragraph (5)(A), by striking ``radiological, 
                nuclear''; and
            (3) in the table of contents, by adding at the end the 
        following:

            ``TITLE XVIII--DOMESTIC NUCLEAR DETECTION OFFICE

``Sec. 1801. Domestic Nuclear Detection Office.
``Sec. 1802. Mission of Office.
``Sec. 1803. Hiring authority.
``Sec. 1804. Testing authority.
``Sec. 1805. Relationship to other Department entities and Federal 
           agencies.
``Sec. 1806. Contracting and grant making authorities.''.

SEC. 502. <<NOTE: 6 USC 592a.>> TECHNOLOGY RESEARCH AND 
                        DEVELOPMENT INVESTMENT STRATEGY FOR 
                        NUCLEAR AND RADIOLOGICAL DETECTION.

    (a) <<NOTE: Deadline.>> In General.--Not later than 1 year after the 
date of the enactment of this Act, the Secretary, the Secretary of 
Energy, the Secretary of Defense, and the Director of National 
Intelligence shall submit to Congress a research and development 
investment strategy for nuclear and radiological detection.

    (b) Contents.--The strategy under subsection (a) shall include--
            (1) a long term technology roadmap for nuclear and 
        radiological detection applicable to the mission needs of the 
        Department, the Department of Energy, the Department of Defense, 
        and the Office of the Director of National Intelligence;
            (2) budget requirements necessary to meet the roadmap; and
            (3) documentation of how the Department, the Department of 
        Energy, the Department of Defense, and the Office of the 
        Director of National Intelligence will execute this strategy.

[[Page 120 STAT. 1936]]

    (c) Initial Report.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary shall submit a report to the 
appropriate congressional committees on--
            (1) the impact of this title, and the amendments made by 
        this title, on the responsibilities under section 302 of the 
        Homeland Security Act of 2002 (6 U.S.C. 182); and
            (2) the efforts of the Department to coordinate, integrate, 
        and establish priorities for conducting all basic and applied 
        research, development, testing, and evaluation of technology and 
        systems to detect, prevent, protect, and respond to chemical, 
        biological, radiological, and nuclear terrorist attacks.

    (d) Annual Report.--The Director for Domestic Nuclear Detection and 
the Under Secretary for Science and Technology shall jointly and 
annually notify Congress that the strategy and technology road map for 
nuclear and radiological detection developed under subsections (a) and 
(b) is consistent with the national policy and strategic plan for 
identifying priorities, goals, objectives, and policies for coordinating 
the Federal Government's civilian efforts to identify and develop 
countermeasures to terrorist threats from weapons of mass destruction 
that are required under section 302(2) of the Homeland Security Act of 
2002 (6 U.S.C. 182(2)).

        TITLE VI-- <<NOTE: Warning, Alert, and Response Network 
Act.>> COMMERCIAL MOBILE SERVICE ALERTS
SEC. 601. <<NOTE: 42 USC 1201 note.>> SHORT TITLE.

    This title may be cited as the ``Warning, Alert, and Response 
Network Act''.
SEC. 602. <<NOTE: 42 USC 1201.>> FEDERAL COMMUNICATIONS COMMISSION 
                        DUTIES.

    (a) <<NOTE: Deadline.>> Commercial Mobile Service Alert 
Regulations.--Within 180 days after the date on which the Commercial 
Mobile Service Alert Advisory Committee, established pursuant to section 
603(a), transmits recommendations to the Federal Communications 
Commission, the Commission shall complete a proceeding to adopt relevant 
technical standards, protocols, procedures, and other technical 
requirements based on the recommendations of such Advisory Committee 
necessary to enable commercial mobile service alerting capability for 
commercial mobile service providers that voluntarily elect to transmit 
emergency alerts. The Commission shall consult with the National 
Institute of Standards and Technology regarding the adoption of 
technical standards under this subsection.

    (b) Commercial Mobile Service Election.--
            (1) Amendment of commercial mobile service license.-- 
        <<NOTE: Deadline.>> Within 120 days after the date on which the 
        Federal Communications Commission adopts relevant technical 
        standards and other technical requirements pursuant to 
        subsection (a), the Commission shall complete a proceeding--
                    (A) to allow any licensee providing commercial 
                mobile service (as defined in section 332(d)(1) of the 
                Communications Act of 1934 (47 U.S.C. 332(d)(1))) to 
                transmit emergency alerts to subscribers to, or users 
                of, the commercial mobile service provided by such 
                licensee;
                    (B) to require any licensee providing commercial 
                mobile service that elects, in whole or in part, under 
                paragraph (2) not to transmit emergency alerts to 
                provide clear and

[[Page 120 STAT. 1937]]

                conspicuous notice at the point of sale of any devices 
                with which its commercial mobile service is included, 
                that it will not transmit such alerts via the service it 
                provides for the device; and
                    (C) to require any licensee providing commercial 
                mobile service that elects under paragraph (2) not to 
                transmit emergency alerts to notify its existing 
                subscribers of its election.
            (2) Election.--
                    (A) In general.-- <<NOTE: Deadline.>> Within 30 days 
                after the Commission issues its order under paragraph 
                (1), each licensee providing commercial mobile service 
                shall file an election with the Commission with respect 
                to whether or not it intends to transmit emergency 
                alerts.
                    (B) Transmission standards; notification.--If a 
                licensee providing commercial mobile service elects to 
                transmit emergency alerts via its commercial mobile 
                service, the licensee shall--
                          (i) notify the Commission of its election; and
                          (ii) agree to transmit such alerts in a manner 
                      consistent with the technical standards, 
                      protocols, procedures, and other technical 
                      requirements implemented by the Commission.
                    (C) No fee for service.--A commercial mobile service 
                licensee that elects to transmit emergency alerts may 
                not impose a separate or additional charge for such 
                transmission or capability.
                    (D) <<NOTE: Procedures.>> Withdrawal; late 
                election.--The Commission shall establish a procedure--
                          (i) for a commercial mobile service licensee 
                      that has elected to transmit emergency alerts to 
                      withdraw its election without regulatory penalty 
                      or forfeiture upon advance written notification of 
                      the withdrawal to its affected subscribers;
                          (ii) for a commercial mobile service licensee 
                      to elect to transmit emergency alerts at a date 
                      later than provided in subparagraph (A); and
                          (iii) under which a subscriber may terminate a 
                      subscription to service provided by a commercial 
                      mobile service licensee that withdraws its 
                      election without penalty or early termination fee.
                    (E) Consumer choice technology.--Any commercial 
                mobile service licensee electing to transmit emergency 
                alerts may offer subscribers the capability of 
                preventing the subscriber's device from receiving such 
                alerts, or classes of such alerts, other than an alert 
                issued by the President. Within 2 years after 
                the <<NOTE: Deadline.>> Commission completes the 
                proceeding under paragraph (1), the Commission shall 
                examine the issue of whether a commercial mobile service 
                provider should continue to be permitted to offer its 
                subscribers such capability. The 
                Commission <<NOTE: Reports.>> shall submit a report with 
                its recommendations to the Committee on Commerce, 
                Science, and Transportation of the Senate and the 
                Committee on Energy and Commerce of the House of 
                Representatives.

[[Page 120 STAT. 1938]]

    (c) Digital Television Transmission Towers Retransmission 
Capability.--Within <<NOTE: Deadline.>> 90 days after the date on which 
the Commission adopts relevant technical standards based on 
recommendations of the Commercial Mobile Service Alert Advisory 
Committee, established pursuant to section 603(a), the Commission shall 
complete a proceeding to require licensees and permittees of 
noncommercial educational broadcast stations or public broadcast 
stations (as those terms are defined in section 397(6) of the 
Communications Act of 1934 (47 U.S.C. 397(6))) to install necessary 
equipment and technologies on, or as part of, any broadcast television 
digital signal transmitter to enable the distribution of geographically 
targeted alerts by commercial mobile service providers that have elected 
to transmit emergency alerts under this section.

    (d) FCC Regulation of Compliance.--The Federal Communications 
Commission may enforce compliance with this title but shall have no 
rulemaking authority under this title, except as provided in subsections 
(a), (b), (c), and (f).
    (e) Limitation of Liability.--
            (1) In general.--Any commercial mobile service provider 
        (including its officers, directors, employees, vendors, and 
        agents) that transmits emergency alerts and meets its 
        obligations under this title shall not be liable to any 
        subscriber to, or user of, such person's service or equipment 
        for--
                    (A) any act or omission related to or any harm 
                resulting from the transmission of, or failure to 
                transmit, an emergency alert; or
                    (B) the release to a government agency or entity, 
                public safety, fire service, law enforcement official, 
                emergency medical service, or emergency facility of 
                subscriber information used in connection with 
                delivering such an alert.
            (2) Election not to transmit alerts.--The election by a 
        commercial mobile service provider under subsection (b)(2)(A) 
        not to transmit emergency alerts, or to withdraw its election to 
        transmit such alerts under subsection (b)(2)(D) shall not, by 
        itself, provide a basis for liability against the provider 
        (including its officers, directors, employees, vendors, and 
        agents).

    (f) <<NOTE: Regulations.>> Testing.--The Commission shall require by 
regulation technical testing for commercial mobile service providers 
that elect to transmit emergency alerts and for the devices and 
equipment used by such providers for transmitting such alerts.
SEC. 603. <<NOTE: 47 USC 1202.>> COMMERCIAL MOBILE SERVICE ALERT 
                        ADVISORY COMMITTEE.

    (a) Establishment.-- <<NOTE: Deadline.>> Not later than 60 days 
after the date of enactment of this Act, the chairman of the Federal 
Communications Commission shall establish an advisory committee, to be 
known as the Commercial Mobile Service Alert Advisory Committee 
(referred to in this section as the ``Advisory Committee'').

    (b) Membership.--The chairman of the Federal Communications 
Commission shall appoint the members of the Advisory Committee, as soon 
as practicable after the date of enactment of this Act, from the 
following groups:
            (1) State and local government representatives.--
        Representatives of State and local governments and 
        representatives of emergency response providers, selected from 
        among

[[Page 120 STAT. 1939]]

        individuals nominated by national organizations representing 
        such governments and personnel.
            (2) Tribal governments.--Representatives from Federally 
        recognized Indian tribes and National Indian organizations.
            (3) Subject matter experts.--Individuals who have the 
        requisite technical knowledge and expertise to serve on the 
        Advisory Committee in the fulfillment of its duties, including 
        representatives of--
                    (A) communications service providers;
                    (B) vendors, developers, and manufacturers of 
                systems, facilities, equipment, and capabilities for the 
                provision of communications services;
                    (C) third-party service bureaus;
                    (D) technical experts from the broadcasting 
                industry;
                    (E) the national organization representing the 
                licensees and permittees of noncommercial broadcast 
                television stations;
                    (F) national organizations representing individuals 
                with special needs, including individuals with 
                disabilities and the elderly; and
                    (G) other individuals with relevant technical 
                expertise.
            (4) Qualified representatives of other stakeholders and 
        interested parties.--Qualified representatives of such other 
        stakeholders and interested and affected parties as the chairman 
        deems appropriate.

    (c) Development of System-Critical Recommendations.--Within 1 
year <<NOTE: Deadline.>> 1after the date of enactment of this Act, the 
Advisory Committee shall develop and submit to the Federal 
Communications Commission recommendations--
            (1) for protocols, technical capabilities, and technical 
        procedures through which electing commercial mobile service 
        providers receive, verify, and transmit alerts to subscribers;
            (2) for the establishment of technical standards for 
        priority transmission of alerts by electing commercial mobile 
        service providers to subscribers;
            (3) for relevant technical standards for devices and 
        equipment and technologies used by electing commercial mobile 
        service providers to transmit emergency alerts to subscribers;
            (4) for the technical capability to transmit emergency 
        alerts by electing commercial mobile providers to subscribers in 
        languages in addition to English, to the extent practicable and 
        feasible;
            (5) under which electing commercial mobile service providers 
        may offer subscribers the capability of preventing the 
        subscriber's device from receiving emergency alerts, or classes 
        of such alerts, (other than an alert issued by the President), 
        consistent with section 602(b)(2)(E);
            (6) for a process under which commercial mobile service 
        providers can elect to transmit emergency alerts if--
                    (A) not all of the devices or equipment used by such 
                provider are capable of receiving such alerts; or
                    (B) the provider cannot offer such alerts throughout 
                the entirety of its service area; and
            (7) as otherwise necessary to enable electing commercial 
        mobile service providers to transmit emergency alerts to 
        subscribers.

    (d) Meetings.--

[[Page 120 STAT. 1940]]

            (1) Initial meeting.-- <<NOTE: Deadline.>> The initial 
        meeting of the Advisory Committee shall take place not later 
        than 60 days after the date of the enactment of this Act.
            (2) Other meetings.--After the initial meeting, the Advisory 
        Committee shall meet at the call of the chair.
            (3) Notice; open meetings.--Any meetings held by the 
        Advisory Committee shall be duly noticed at least 14 days in 
        advance and shall be open to the public.

    (e) Rules.--
            (1) Quorum.--One-third of the members of the Advisory 
        Committee shall constitute a quorum for conducting business of 
        the Advisory Committee.
            (2) Subcommittees.--To assist the Advisory Committee in 
        carrying out its functions, the chair may establish appropriate 
        subcommittees composed of members of the Advisory Committee and 
        other subject matter experts as deemed necessary.
            (3) Additional rules.--The Advisory Committee may adopt 
        other rules as needed.

    (f) Federal Advisory Committee Act.--Neither the Federal Advisory 
Committee Act (5 U.S.C. App.) nor any rule, order, or regulation 
promulgated under that Act shall apply to the Advisory Committee.
    (g) Consultation With NIST.--The Advisory Committee shall consult 
with the National Institute of Standards and Technology in its work on 
developing recommendations under paragraphs (2) and (3) of subsection 
(c).
SEC. 604. <<NOTE: 47 USC 1203.>> RESEARCH AND DEVELOPMENT.

    (a) In General.--The Under Secretary of Homeland Security for 
Science and Technology, in consultation with the director of the 
National Institute of Standards and Technology and the chairman of the 
Federal Communications Commission, shall establish a research, 
development, testing, and evaluation program based on the 
recommendations of the Commercial Mobile Service Alert Advisory 
Committee, established pursuant to section 603(a), to support the 
development of technologies to increase the number of commercial mobile 
service devices that can receive emergency alerts.
    (b) Functions.--The program established under subsection (a) shall--
            (1) fund research, development, testing, and evaluation at 
        academic institutions, private sector entities, government 
        laboratories, and other appropriate entities; and
            (2) ensure that the program addresses, at a minimum--
                    (A) developing innovative technologies that will 
                transmit geographically targeted emergency alerts to the 
                public; and
                    (B) research on understanding and improving public 
                response to warnings.
SEC. 605. <<NOTE: 47 USC 1204.>> GRANT PROGRAM FOR REMOTE 
                        COMMUNITY ALERT SYSTEMS.

    (a) Grant Program.-- <<NOTE: Deadline.>> The Under Secretary of 
Commerce for Oceans and Atmosphere, in consultation with the Secretary 
of Homeland Security, shall establish a program under which grants may 
be made to provide for outdoor alerting technologies in remote 
communities effectively unserved by commercial mobile service (as 
determined by the Federal Communications Commission within

[[Page 120 STAT. 1941]]

180 days after the date of enactment of this Act) for the purpose of 
enabling residents of those communities to receive emergency alerts.

    (b) Applications and Conditions.--In conducting the program, the 
Under Secretary--
            (1) <<NOTE: Procedures.>> shall establish a notification and 
        application procedure; and
            (2) may establish such conditions, and require such 
        assurances, as may be appropriate to ensure the efficiency and 
        integrity of the grant program.

    (c) Sunset.--The Under Secretary may not make grants under 
subsection (a) more than 5 years after the date of enactment of this 
Act.
    (d) Limitation.--The sum of the amounts awarded for all fiscal years 
as grants under this section may not exceed $10,000,000.
SEC. 606. <<NOTE: 47 USC 1205.>> FUNDING.

    (a) In General.--In addition to any amounts provided by 
appropriation Acts, funding for this title shall be provided from the 
Digital Transition and Public Safety Fund in accordance with section 
3010 of the Digital Television Transition and Public Safety Act of 2005 
(47 U.S.C. 309 note).
    (b) Compensation.--The Assistant Secretary of Commerce 
for7Communications and Information shall compensate any such broadcast 
station licensee or permittee for reasonable costs incurred in complying 
with the requirements imposed pursuant to section 602(c) from funds made 
available under this section. The Assistant Secretary shall ensure that 
sufficient funds are made available to effectuate geographically 
targeted alerts.
    (c) Credit.-- <<NOTE: Effective date.>> The Assistant Secretary of 
Commerce for Communications and Information, in consultation with the 
Under Secretary of Homeland Security for Science and Technology and the 
Under Secretary of Commerce for Oceans and Atmosphere, may borrow from 
the Treasury beginning on October 1, 2006, such sums as may be 
necessary, but not to exceed $106,000,000, to implement this title. The 
Assistant Secretary of Commerce for Communications and Information shall 
ensure that the Under Secretary of Homeland Security for Science and 
Technology and the Under Secretary of Commerce for Oceans and Atmosphere 
are provided adequate funds to carry out their responsibilities under 
sections 604 and 605 of this title. <<NOTE: Reimbursement.>> The 
Treasury shall be reimbursed, without interest, from amounts in the 
Digital Television Transition and Public Safety Fund as funds are 
deposited into the Fund.
SEC. 607. ESSENTIAL SERVICES DISASTER ASSISTANCE.

    Title IV of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170 et seq.) is amended by adding at the end 
the following:
``SEC. 425. <<NOTE: 42 USC 5189e.>> ESSENTIAL SERVICE PROVIDERS.

    ``(a) Definition.--In this section, the term `essential service 
provider' means an entity that--
            ``(1) provides--
                    ``(A) telecommunications service;
                    ``(B) electrical power;
                    ``(C) natural gas;
                    ``(D) water and sewer services; or

[[Page 120 STAT. 1942]]

                    ``(E) any other essential service, as determined by 
                the President;
            ``(2) is--
                    ``(A) a municipal entity;
                    ``(B) a nonprofit entity; or
                    ``(C) a private, for profit entity; and
            ``(3) is contributing to efforts to respond to an emergency 
        or major disaster.

    ``(b) Authorization for Accessibility.--Unless exceptional 
circumstances apply, in an emergency or major disaster, the head of a 
Federal agency, to the greatest extent practicable, shall not--
            ``(1) deny or impede access to the disaster site to an 
        essential service provider whose access is necessary to restore 
        and repair an essential service; or
            ``(2) impede the restoration or repair of the services 
        described in subsection (a)(1).

    ``(c) Implementation.--In implementing this section, the head of a 
Federal agency shall follow all applicable Federal laws, regulations, 
and policies.''.
SEC. 608. COMMUNITY DISASTER LOANS.

    Section 417(b) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5184(b)) is amended--
            (1) by striking ``exceed 25 per centum'' and inserting the 
        following: ``exceed--
            ``(1) 25 percent''; and
            (2) by striking the period at the end and inserting the 
        following: ``; or
            ``(2) if the loss of tax and other revenues of the local 
        government as a result of the major disaster is at least 75 
        percent of the annual operating budget of that local government 
        for the fiscal year in which the major disaster occurs, 50 
        percent of the annual operating budget of that local government 
        for the fiscal year in which the major disaster occurs, and 
        shall not exceed $5,000,000.''.
SEC. 609. PUBLIC FACILITIES.

    Section 406(c)(1) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5172(c)(1)) is amended--
            (1) in subparagraph (A), by striking ``75'' and inserting 
        ``90'';
            (2) by striking subparagraph (B); and
            (3) by redesignating subparagraphs (C) and (D) as 
        subparagraphs (B) and (C), respectively.
SEC. 610. EXPEDITED PAYMENTS.

    Section 407 of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5173) is amended by adding at the end the 
following:
    ``(e) Expedited Payments.--
            ``(1) <<NOTE: President.>> Grant assistance.--In making a 
        grant under subsection (a)(2), the President shall provide not 
        less than 50 percent of the President's initial estimate of the 
        Federal share of assistance as an initial payment in accordance 
        with paragraph (2).
            ``(2) Date of payment.-- <<NOTE: Deadlines.>> Not later than 
        60 days after the date of the estimate described in paragraph 
        (1) and not later

[[Page 120 STAT. 1943]]

        than 90 days after the date on which the State or local 
        government or owner or operator of a private nonprofit facility 
        applies for assistance under this section, an initial payment 
        described in paragraph (1) shall be paid.''.
SEC. 611. USE OF LOCAL CONTRACTING.

    Section 307(b) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5150), as amended by the Post-
Katrina Emergency Management Reform Act of 2006, is amended by adding at 
the end the following:
            ``(3) Formulation of requirements.--The head of a Federal 
        agency, as feasible and practicable, shall formulate appropriate 
        requirements to facilitate compliance with this section.''.
SEC. 612. <<NOTE: 6 USC 314a.>> FEMA PROGRAMS.

     <<NOTE: Effective date.>> Notwithstanding any other provision of 
Federal law, as of April 1, 2007, the Director of the Federal Emergency 
Management Agency shall be responsible for the radiological emergency 
preparedness program and the chemical stockpile emergency preparedness 
program.
SEC. 613. HOMELAND SECURITY DEFINITION.

    Section 2(6) of the Homeland Security Act of 2002 (6 U.S.C. 101(6)) 
is amended by inserting ``governmental and nongovernmental'' after 
``local''.

                        TITLE VII--OTHER MATTERS

SEC. 701. SECURITY PLAN FOR ESSENTIAL AIR SERVICE AND SMALL 
                        COMMUNITY AIRPORTS.

    (a) In General.-- <<NOTE: Deadline.>> Not later than 60 days after 
the date of the enactment of this Act, the Assistant Secretary for the 
Transportation Security Administration shall submit to Congress a 
security plan for--
            (1) Essential Air Service airports in the United States; and
            (2) airports whose community or consortia of communities 
        receive assistance under the Small Community Air Service 
        Development Program authorized under section 41743 of title 49, 
        United States Code, and maintain, resume, or obtain scheduled 
        passenger air carrier service with assistance from that program 
        in the United States.

    (b) Elements of Plan.--The security plans required under subsection 
(a) shall include the following:
            (1) Recommendations for improved security measures at such 
        airports.
            (2) Recommendations for proper passenger and cargo security 
        screening procedures at such airports.
            (3) A timeline for implementation of recommended security 
        measures or procedures at such airports.
            (4) Cost analysis for implementation of recommended security 
        measures or procedures at such airports.
SEC. 702. <<NOTE: 6 USC 470.>> DISCLOSURES REGARDING HOMELAND 
                        SECURITY GRANTS.

    (a) Definitions.--In this section:

[[Page 120 STAT. 1944]]

            (1) Homeland security grant.--The term ``homeland security 
        grant'' means any grant made or administered by the Department, 
        including--
                    (A) the State Homeland Security Grant Program;
                    (B) the Urban Area Security Initiative Grant 
                Program;
                    (C) the Law Enforcement Terrorism Prevention 
                Program;
                    (D) the Citizen Corps; and
                    (E) the Metropolitan Medical Response System.
            (2) Local government.--The term ``local government'' has the 
        meaning given the term in section 2 of the Homeland Security Act 
        of 2002 (6 U.S.C. 101).

    (b) Required Disclosures.-- <<NOTE: Deadlines. Reports.>> Each State 
or local government that receives a homeland security grant shall, not 
later than 12 months after the later of the date of the enactment of 
this Act and the date of receipt of such grant, and every 12 months 
thereafter until all funds provided under such grant are expended, 
submit a report to the Secretary that contains a list of all 
expenditures made by such State or local government using funds from 
such grant.
SEC. 703. <<NOTE: Deadlines Regulations. 49 USC 31100 
                        note.>> TRUCKING SECURITY.

    (a) Legal Status Verification for Licensed United States Commercial 
Drivers.--Not later than 18 months after the date of the enactment of 
this Act, the Secretary of Transportation, in cooperation with the 
Secretary, shall issue regulations to implement the recommendations 
contained in the memorandum of the Inspector General of the Department 
of Transportation issued on June 4, 2004 (Control No. 2004-054).
    (b) Commercial Driver's License Antifraud Programs.--Not later than 
18 months after the date of the enactment of this Act, the Secretary of 
Transportation, in cooperation with the Secretary, shall issue a 
regulation to implement the recommendations contained in the Report on 
Federal Motor Carrier Safety Administration Oversight of the Commercial 
Driver's License Program (MH-2006-037).
    (c) Verification of Commercial Motor Vehicle Traffic.--
            (1) Guidelines.--Not later than 18 months after the date of 
        the enactment of this Act, the Secretary, in consultation with 
        the Secretary of Transportation, shall draft guidelines for 
        Federal, State, and local law enforcement officials, including 
        motor carrier safety enforcement personnel, on how to identify 
        noncompliance with Federal laws uniquely applicable to 
        commercial motor vehicles and commercial motor vehicle operators 
        engaged in cross-border traffic and communicate such 
        noncompliance to the appropriate Federal authorities. Such 
        guidelines shall be coordinated with the training and outreach 
        activities of the Federal Motor Carrier Safety Administration 
        under section 4139 of SAFETEA-LU (Public Law 109-59).
            (2) Verification.--Not later than 18 months after the date 
        of the enactment of this Act, the Administrator of the Federal 
        Motor Carrier Safety Administration shall modify the final rule 
        regarding the enforcement of operating authority (Docket No. 
        FMCSA-2002-13015) to establish a system or process by which a 
        carrier's operating authority can be verified during a roadside 
        inspection.

[[Page 120 STAT. 1945]]

SEC. 704. <<NOTE: Appropriation authorization.>> AIR AND MARINE 
                        OPERATIONS OF THE NORTHERN BORDER AIR 
                        WING.

    In addition to any other amounts authorized to be appropriated for 
Air and Marine Operations of United States Customs and Border Protection 
for fiscal year 2008, there are authorized to be appropriated such sums 
as may be necessary for operation expenses and aviation assets, for 
primary and secondary sites, of the Northern Border Air Wing Branch in 
Great Falls, Montana.
SEC. 705. <<NOTE: Alaska.>> PHASEOUT OF VESSELS SUPPORTING OIL AND 
                        GAS DEVELOPMENT.

    (a) In General.--Notwithstanding section 12105(c) of title 46, 
United States Code, a foreign-flag vessel may be chartered by, or on 
behalf of, a lessee to be employed for the setting, relocation, or 
recovery of anchors or other mooring equipment of a mobile offshore 
drilling unit that is located over the Outer Continental Shelf (as 
defined in section 2(a) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1331(a)) for operations in support of exploration, or flow-
testing and stimulation of wells, for offshore mineral or energy 
resources in the Beaufort Sea or the Chukchi Sea adjacent to Alaska--
            (1) <<NOTE: Deadline. Federal Register, publication.>> until 
        December 31, 2009, if the Secretary of Transportation determines 
        after publishing notice in the Federal Register, that 
        insufficient vessels documented under section 12105(c) of title 
        46, United States Code, are reasonably available and suitable 
        for these support operations and all such reasonably available 
        and suitable vessels are employed in support of such operations; 
        and
            (2) <<NOTE: Extension.>> for an additional 2-year period 
        beginning January 1, 2010, if the Secretary of Transportation 
        determines --
                    (A) as of December 31, 2009, the lessee has entered 
                into a binding agreement to employ an eligible vessel or 
                vessels to be documented under section 12105(c) of title 
                46, United States Code, in sufficient numbers and with 
                sufficient suitability to replace any vessel or vessels 
                operating under this section; and
                    (B) <<NOTE: Federal Register, publication.>> after 
                publishing notice in the Federal Register, that 
                insufficient vessels documented under section 12105(c) 
                of title 46, United States Code, are reasonably 
                available and suitable for these support operations and 
                all such reasonably available and suitable vessels are 
                employed in support of such operations.

    (b) Lessee Defined.--In this section, the term ``lessee'' means the 
holder of a lease (as defined in section 1331(c) of title 43, United 
States Code).
    (c) Savings Provision.--Nothing in subsection (a) may be construed 
to authorize the employment in the coastwise trade of a vessel that does 
not meet the requirements of section 12106 of title 46, United States 
Code.
SEC. 706. COAST GUARD PROPERTY IN PORTLAND, MAINE.

    Section 347(c) of the Maritime Transportation Security Act of 2002 
(Public Law 107-295; 116 Stat. 2109) is amended by striking ``within 30 
months from the date of conveyance'' and inserting ``by December 31, 
2009''.

[[Page 120 STAT. 1946]]

SEC. 707. <<NOTE: 6 USC 220.>> METHAMPHETAMINE AND METHAMPHETAMINE 
                        PRECURSOR CHEMICALS.

    (a) Compliance With Performance Plan Requirements.--As part of the 
annual performance plan required in the budget submission of the United 
States Customs and Border Protection under section 1115 of title 31, 
United States Code, the Commissioner shall establish performance 
indicators relating to the seizure of methamphetamine and 
methamphetamine precursor chemicals in order to evaluate the performance 
goals of the United States Customs and Border Protection with respect to 
the interdiction of illegal drugs entering the United States.
    (b) Study and Report Relating to Methamphetamine and Methamphetamine 
Precursor Chemicals.--
            (1) Analysis.--The Commissioner shall, on an ongoing basis, 
        analyze the movement of methamphetamine and methamphetamine 
        precursor chemicals into the United States. In conducting the 
        analysis, the Commissioner shall--
                    (A) consider the entry of methamphetamine and 
                methamphetamine precursor chemicals through ports of 
                entry, between ports of entry, through international 
                mails, and through international courier services;
                    (B) examine the export procedures of each foreign 
                country where the shipments of methamphetamine and 
                methamphetamine precursor chemicals originate and 
                determine if changes in the country's customs over time 
                provisions would alleviate the export of methamphetamine 
                and methamphetamine precursor chemicals; and
                    (C) identify emerging trends in smuggling techniques 
                and strategies.
            (2) Report.--Not later than September 30, 2007, and each 2-
        year period thereafter, the Commissioner, in the consultation 
        with the Attorney General, United States Immigration and Customs 
        Enforcement, the United States Drug Enforcement Administration, 
        and the United States Department of State, shall submit a report 
        to the Committee on Finance of the Senate, the Committee on 
        Foreign Relations of the Senate, the Committee on the Judiciary 
        of the Senate, the Committee on Ways and Means of the House of 
        Representatives, the Committee on International Relations of the 
        House of Representatives, and the Committee on the Judiciary of 
        the House of Representatives, that includes--
                    (A) a comprehensive summary of the analysis 
                described in paragraph (1); and
                    (B) a description of how the Untied States Customs 
                and Border Protection utilized the analysis described in 
                paragraph (1) to target shipments presenting a high risk 
                for smuggling or circumvention of the Combat 
                Methamphetamine Epidemic Act of 2005 (Public Law 109-
                177).
            (3) Availability of analysis.--The Commissioner shall ensure 
        that the analysis described in paragraph (1) is made available 
        in a timely manner to the Secretary of State to facilitate the 
        Secretary in fulfilling the Secretary's reporting requirements 
        in section 722 of the Combat Methamphetamine Epidemic Act of 
        2005.

    (c) Definition.--In this section, the term ``methamphetamine 
precursor chemicals'' means the chemicals ephedrine,

[[Page 120 STAT. 1947]]

pseudoephedrine, or phenylpropanolamine, including each of the salts, 
optical isomers, and salts of optical isomers of such chemicals.
SEC. 708. AIRCRAFT CHARTER CUSTOMER AND LESSEE PRESCREENING 
                        PROGRAM.

    (a) Implementation Status.-- <<NOTE: Deadline.>> Not later than 270 
days after the implementation of the Department's aircraft charter 
customer and lessee prescreening process required under section 
44903(j)(2) of title 49, United States Code, the Comptroller General of 
the United States shall--
            (1) assess the status and implementation of the program and 
        the use of the program by the general aviation charter and 
        rental community; and
            (2) <<NOTE: Reports.>> submit a report containing the 
        findings, conclusions, and recommendations, if any, of such 
        assessment to--
                    (A) the Committee on Commerce, Science, and 
                Transportation of the Senate;
                    (B) the Committee on Homeland Security of the House 
                of Representatives; and
                    (C) the Committee on Transportation and 
                Infrastructure of the House of Representatives.
SEC. 709. <<NOTE: 42 USC 300hh-14.>> PROTECTION OF HEALTH AND 
                        SAFETY DURING DISASTERS.

    (a) Definitions.--In this section:
            (1) Certified monitoring program.--The term ``certified 
        monitoring program'' means a medical monitoring program--
                    (A) in which a participating responder is a 
                participant as a condition of the employment of such 
                participating responder; and
                    (B) that the Secretary of Health and Human Services 
                certifies includes an adequate baseline medical 
                screening.
            (2) Disaster area.--The term ``disaster area'' means an area 
        in which the President has declared a major disaster (as that 
        term is defined in section 102 of the Robert T. Stafford 
        Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)), 
        during the period of such declaration.
            (3) High exposure level.--The term ``high exposure level'' 
        means a level of exposure to a substance of concern that is for 
        such a duration, or of such a magnitude, that adverse effects on 
        human health can be reasonably expected to occur, as determined 
        by the President, acting through the Secretary of Health and 
        Human Services, in accordance with human monitoring or 
        environmental or other appropriate indicators.
            (4) Individual.--The term ``individual'' includes--
                    (A) a worker or volunteer who responds to a 
                disaster, either natural or manmade, involving any mode 
                of transportation in the United States or disrupting the 
                transportation system of the United States, including--
                          (i) a police officer;
                          (ii) a firefighter;
                          (iii) an emergency medical technician;
                          (iv) any participating member of an urban 
                      search and rescue team; and
                          (v) any other relief or rescue worker or 
                      volunteer that the President, acting through the 
                      Secretary of Health and Human Services, determines 
                      to be appropriate;

[[Page 120 STAT. 1948]]

                    (B) a worker who responds to a disaster, either 
                natural or manmade, involving any mode of transportation 
                in the United States or disrupting the transportation 
                system of the United States, by assisting in the cleanup 
                or restoration of critical infrastructure in and around 
                a disaster area;
                    (C) a person whose place of residence is in a 
                disaster area, caused by either a natural or manmade 
                disaster involving any mode of transportation in the 
                United States or disrupting the transportation system of 
                the United States;
                    (D) a person who is employed in or attends school, 
                child care, or adult day care in a building located in a 
                disaster area, caused by either a natural or manmade 
                disaster involving any mode of transportation in the 
                United States or disrupting the transportation system of 
                the United States, of the United States; and
                    (E) any other person that the President, acting 
                through the Secretary of Health and Human Services, 
                determines to be appropriate.
            (5) Participating responder.--The term ``participating 
        responder'' means an individual described in paragraph (4)(A).
            (6) Program.--The term ``program'' means a program described 
        in subsection (b) that is carried out for a disaster area.
            (7) Substance of concern.--The term ``substance of concern'' 
        means a chemical or other substance that is associated with 
        potential acute or chronic human health effects, the risk of 
        exposure to which could potentially be increased as the result 
        of a disaster, as determined by the President, acting through 
        the Secretary of Health and Human Services, and in coordination 
        with the Agency for Toxic Substances and Disease Registry, the 
        Environmental Protection Agency, the Centers for Disease Control 
        and Prevention, the National Institutes of Health, the Federal 
        Emergency Management Agency, the Occupational Health and Safety 
        Administration, and other agencies.

    (b) <<NOTE: President.>> Program.--
            (1) In general.--If the President, acting through the 
        Secretary of Health and Human Services, determines that 1 or 
        more substances of concern are being, or have been, released in 
        an area declared to be a disaster area and disrupts the 
        transportation system of the United States, the President, 
        acting through the Secretary of Health and Human Services, may 
        carry out a program for the coordination, protection, 
        assessment, monitoring, and study of the health and safety of 
        individuals with high exposure levels to ensure that--
                    (A) the individuals are adequately informed about 
                and protected against potential health impacts of any 
                substance of concern in a timely manner;
                    (B) the individuals are monitored and studied over 
                time, including through baseline and followup clinical 
                health examinations, for--
                          (i) any short- and long-term health impacts of 
                      any substance of concern; and
                          (ii) any mental health impacts;
                    (C) the individuals receive health care referrals as 
                needed and appropriate; and

[[Page 120 STAT. 1949]]

                    (D) information from any such monitoring and studies 
                is used to prevent or protect against similar health 
                impacts from future disasters.
            (2) Activities.--A program under paragraph (1) may include 
        such activities as--
                    (A) collecting and analyzing environmental exposure 
                data;
                    (B) developing and disseminating information and 
                educational materials;
                    (C) performing baseline and followup clinical health 
                and mental health examinations and taking biological 
                samples;
                    (D) establishing and maintaining an exposure 
                registry;
                    (E) studying the short- and long-term human health 
                impacts of any exposures through epidemiological and 
                other health studies; and
                    (F) providing assistance to individuals in 
                determining eligibility for health coverage and 
                identifying appropriate health services.
            (3) Timing.--To the maximum extent practicable, activities 
        under any program carried out under paragraph (1) (including 
        baseline health examinations) shall be commenced in a timely 
        manner that will ensure the highest level of public health 
        protection and effective monitoring.
            (4) Participation in registries and studies.--
                    (A) In general.--Participation in any registry or 
                study that is part of a program carried out under 
                paragraph (1) shall be voluntary.
                    (B) Protection of privacy.--The President, acting 
                through the Secretary of Health and Human Services, 
                shall take appropriate measures to protect the privacy 
                of any participant in a registry or study described in 
                subparagraph (A).
                    (C) Priority.--
                          (i) In general.--Except as provided in clause 
                      (ii), the President, acting through the Secretary 
                      of Health and Human Services, shall give priority 
                      in any registry or study described in subparagraph 
                      (A) to the protection, monitoring and study of the 
                      health and safety of individuals with the highest 
                      level of exposure to a substance of concern.
                          (ii) Modifications.--Notwithstanding clause 
                      (i), the President, acting through the Secretary 
                      of Health and Human Services, may modify the 
                      priority of a registry or study described in 
                      subparagraph (A), if the President, acting through 
                      the Secretary of Health and Human Services, 
                      determines such modification to be appropriate.
            (5) Cooperative agreements.--
                    (A) In general.--The President, acting through the 
                Secretary of Health and Human Services, may carry out a 
                program under paragraph (1) through a cooperative 
                agreement with a medical institution, including a local 
                health department, or a consortium of medical 
                institutions.
                    (B) Selection criteria.--To the maximum extent 
                practicable, the President, acting through the Secretary 
                of Health and Human Services, shall select, to carry out

[[Page 120 STAT. 1950]]

                a program under paragraph (1), a medical institution or 
                a consortium of medical institutions that--
                          (i) is located near--
                                    (I) the disaster area with respect 
                                to which the program is carried out; and
                                    (II) any other area in which there 
                                reside groups of individuals that worked 
                                or volunteered in response to the 
                                disaster; and
                          (ii) has appropriate experience in the areas 
                      of environmental or occupational health, 
                      toxicology, and safety, including experience in--
                                    (I) developing clinical protocols 
                                and conducting clinical health 
                                examinations, including mental health 
                                assessments;
                                    (II) conducting long-term health 
                                monitoring and epidemiological studies;
                                    (III) conducting long-term mental 
                                health studies; and
                                    (IV) establishing and maintaining 
                                medical surveillance programs and 
                                environmental exposure or disease 
                                registries.
            (6) Involvement.--
                    (A) In general.--In carrying out a program under 
                paragraph (1), the President, acting through the 
                Secretary of Health and Human Services, shall involve 
                interested and affected parties, as appropriate, 
                including representatives of--
                          (i) Federal, State, and local government 
                      agencies;
                          (ii) groups of individuals that worked or 
                      volunteered in response to the disaster in the 
                      disaster area;
                          (iii) local residents, businesses, and schools 
                      (including parents and teachers);
                          (iv) health care providers;
                          (v) faith based organizations; and
                          (vi) other organizations and persons.
                    (B) Committees.--Involvement under subparagraph (A) 
                may be provided through the establishment of an advisory 
                or oversight committee or board.
            (7) Privacy.--The President, acting through the Secretary of 
        Health and Human Services, shall carry out each program under 
        paragraph (1) in accordance with regulations relating to privacy 
        promulgated under section 264(c) of the Health Insurance 
        Portability and Accountability Act of 1996 (42 U.S.C. 1320d-2 
        note; Public Law 104-191).
            (8) Existing programs.--In carrying out a program under 
        paragraph (1), the President, acting through the Secretary of 
        Health and Human Services, may--
                    (A) include the baseline clinical health examination 
                of a participating responder under a certified 
                monitoring programs; and
                    (B) substitute the baseline clinical health 
                examination of a participating responder under a 
                certified monitoring program for a baseline clinical 
                health examination under paragraph (1).

    (c) Reports.--Not later than 1 year after the establishment of a 
program under subsection (b)(1), and every 5 years thereafter, the 
President, acting through the Secretary of Health and Human

[[Page 120 STAT. 1951]]

Services, or the medical institution or consortium of such institutions 
having entered into a cooperative agreement under subsection (b)(5), may 
submit a report to the Secretary of Homeland Security, the Secretary of 
Labor, the Administrator of the Environmental Protection Agency, and 
appropriate committees of Congress describing the programs and studies 
carried out under the program.
    (d) National Academy of Sciences Report on Disaster Area Health and 
Environmental Protection and Monitoring.--
            (1) <<NOTE: Contracts. Reports.>> In general.--The Secretary 
        of Health and Human Services, the Secretary of Homeland 
        Security, and the Administrator of the Environmental Protection 
        Agency shall jointly enter into a contract with the National 
        Academy of Sciences to conduct a study and prepare a report on 
        disaster area health and environmental protection and 
        monitoring.
            (2) Participation of experts.--The report under paragraph 
        (1) shall be prepared with the participation of individuals who 
        have expertise in--
                    (A) environmental health, safety, and medicine;
                    (B) occupational health, safety, and medicine;
                    (C) clinical medicine, including pediatrics;
                    (D) environmental toxicology;
                    (E) epidemiology;
                    (F) mental health;
                    (G) medical monitoring and surveillance;
                    (H) environmental monitoring and surveillance;
                    (I) environmental and industrial hygiene;
                    (J) emergency planning and preparedness;
                    (K) public outreach and education;
                    (L) State and local health departments;
                    (M) State and local environmental protection 
                departments;
                    (N) functions of workers that respond to disasters, 
                including first responders;
                    (O) public health; and
                    (P) family services, such as counseling and other 
                disaster-related services provided to families.
            (3) Contents.--The report under paragraph (1) shall provide 
        advice and recommendations regarding protecting and monitoring 
        the health and safety of individuals potentially exposed to any 
        chemical or other substance associated with potential acute or 
        chronic human health effects as the result of a disaster, 
        including advice and recommendations regarding--
                    (A) the establishment of protocols for monitoring 
                and responding to chemical or substance releases in a 
                disaster area to protect public health and safety, 
                including--
                          (i) chemicals or other substances for which 
                      samples should be collected in the event of a 
                      disaster, including a terrorist attack;
                          (ii) chemical- or substance-specific methods 
                      of sample collection, including sampling 
                      methodologies and locations;
                          (iii) chemical- or substance-specific methods 
                      of sample analysis;

[[Page 120 STAT. 1952]]

                          (iv) health-based threshold levels to be used 
                      and response actions to be taken in the event that 
                      thresholds are exceeded for individual chemicals 
                      or other substances;
                          (v) procedures for providing monitoring 
                      results to--
                                    (I) appropriate Federal, State, and 
                                local government agencies;
                                    (II) appropriate response personnel; 
                                and
                                    (III) the public;
                          (vi) responsibilities of Federal, State, and 
                      local agencies for--
                                    (I) collecting and analyzing 
                                samples;
                                    (II) reporting results; and
                                    (III) taking appropriate response 
                                actions; and
                          (vii) capabilities and capacity within the 
                      Federal Government to conduct appropriate 
                      environmental monitoring and response in the event 
                      of a disaster, including a terrorist attack; and
                    (B) other issues specified by the Secretary of 
                Health and Human Services, the Secretary of Homeland 
                Security, and the Administrator of the Environmental 
                Protection Agency.
            (4) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as are necessary to carry out this 
        subsection.

   TITLE VIII-- <<NOTE: Unlawful Internet Gambling Enforcement Act of 
2006.>> UNLAWFUL INTERNET GAMBLING ENFORCEMENT
SEC. 801. <<NOTE: 31 USC 5301 note.>> SHORT TITLE.

    This title may be cited as the ``Unlawful Internet Gambling 
Enforcement Act of 2006''.
SEC. 802. PROHIBITION ON ACCEPTANCE OF ANY PAYMENT INSTRUMENT FOR 
                        UNLAWFUL INTERNET GAMBLING.

    (a) In General.--Chapter 53 of title 31, United States Code, is 
amended by adding at the end the following:

  ``SUBCHAPTER IV--PROHIBITION ON FUNDING OF UNLAWFUL INTERNET GAMBLING

``Sec. 5361. Congressional findings and purpose

    ``(a) Findings.--Congress finds the following:
            ``(1) Internet gambling is primarily funded through personal 
        use of payment system instruments, credit cards, and wire 
        transfers.
            ``(2) The National Gambling Impact Study Commission in 1999 
        recommended the passage of legislation to prohibit wire 
        transfers to Internet gambling sites or the banks which 
        represent such sites.
            ``(3) Internet gambling is a growing cause of debt 
        collection problems for insured depository institutions and the 
        consumer credit industry.
            ``(4) New mechanisms for enforcing gambling laws on the 
        Internet are necessary because traditional law enforcement 
        mechanisms are often inadequate for enforcing gambling

[[Page 120 STAT. 1953]]

        prohibitions or regulations on the Internet, especially where 
        such gambling crosses State or national borders.

    ``(b) Rule of Construction.--No provision of this subchapter shall 
be construed as altering, limiting, or extending any Federal or State 
law or Tribal-State compact prohibiting, permitting, or regulating 
gambling within the United States.

``Sec. 5362. Definitions

    ``In this subchapter:
            ``(1) Bet or wager.--The term `bet or wager'--
                    ``(A) means the staking or risking by any person of 
                something of value upon the outcome of a contest of 
                others, a sporting event, or a game subject to chance, 
                upon an agreement or understanding that the person or 
                another person will receive something of value in the 
                event of a certain outcome;
                    ``(B) includes the purchase of a chance or 
                opportunity to win a lottery or other prize (which 
                opportunity to win is predominantly subject to chance);
                    ``(C) includes any scheme of a type described in 
                section 3702 of title 28;
                    ``(D) includes any instructions or information 
                pertaining to the establishment or movement of funds by 
                the bettor or customer in, to, or from an account with 
                the business of betting or wagering; and
                    ``(E) does not include--
                          ``(i) any activity governed by the securities 
                      laws (as that term is defined in section 3(a)(47) 
                      of the Securities Exchange Act of 1934 for the 
                      purchase or sale of securities (as that term is 
                      defined in section 3(a)(10) of that Act);
                          ``(ii) any transaction conducted on or subject 
                      to the rules of a registered entity or exempt 
                      board of trade under the Commodity Exchange Act;
                          ``(iii) any over-the-counter derivative 
                      instrument;
                          ``(iv) any other transaction that--
                                    ``(I) is excluded or exempt from 
                                regulation under the Commodity Exchange 
                                Act; or
                                    ``(II) is exempt from State gaming 
                                or bucket shop laws under section 12(e) 
                                of the Commodity Exchange Act or section 
                                28(a) of the Securities Exchange Act of 
                                1934;
                          ``(v) any contract of indemnity or guarantee;
                          ``(vi) any contract for insurance;
                          ``(vii) any deposit or other transaction with 
                      an insured depository institution;
                          ``(viii) participation in any game or contest 
                      in which participants do not stake or risk 
                      anything of value other than--
                                    ``(I) personal efforts of the 
                                participants in playing the game or 
                                contest or obtaining access to the 
                                Internet; or
                                    ``(II) points or credits that the 
                                sponsor of the game or contest provides 
                                to participants free of charge and that 
                                can be used or redeemed only for 
                                participation in games or contests 
                                offered by the sponsor; or

[[Page 120 STAT. 1954]]

                          ``(ix) participation in any fantasy or 
                      simulation sports game or educational game or 
                      contest in which (if the game or contest involves 
                      a team or teams) no fantasy or simulation sports 
                      team is based on the current membership of an 
                      actual team that is a member of an amateur or 
                      professional sports organization (as those terms 
                      are defined in section 3701 of title 28) and that 
                      meets the following conditions:
                                    ``(I) All prizes and awards offered 
                                to winning participants are established 
                                and made known to the participants in 
                                advance of the game or contest and their 
                                value is not determined by the number of 
                                participants or the amount of any fees 
                                paid by those participants.
                                    ``(II) All winning outcomes reflect 
                                the relative knowledge and skill of the 
                                participants and are determined 
                                predominantly by accumulated statistical 
                                results of the performance of 
                                individuals (athletes in the case of 
                                sports events) in multiple real-world 
                                sporting or other events.
                                    ``(III) No winning outcome is 
                                based--
                                            ``(aa) on the score, point-
                                        spread, or any performance or 
                                        performances of any single real-
                                        world team or any combination of 
                                        such teams; or
                                            ``(bb) solely on any single 
                                        performance of an individual 
                                        athlete in any single real-world 
                                        sporting or other event.
            ``(2) Business of betting or wagering.--The term `business 
        of betting or wagering' does not include the activities of a 
        financial transaction provider, or any interactive computer 
        service or telecommunications service.
            ``(3) Designated payment system.--The term `designated 
        payment system' means any system utilized by a financial 
        transaction provider that the Secretary and the Board of 
        Governors of the Federal Reserve System, in consultation with 
        the Attorney General, jointly determine, by regulation or order, 
        could be utilized in connection with, or to facilitate, any 
        restricted transaction.
            ``(4) Financial transaction provider.--The term `financial 
        transaction provider' means a creditor, credit card issuer, 
        financial institution, operator of a terminal at which an 
        electronic fund transfer may be initiated, money transmitting 
        business, or international, national, regional, or local payment 
        network utilized to effect a credit transaction, electronic fund 
        transfer, stored value product transaction, or money 
        transmitting service, or a participant in such network, or other 
        participant in a designated payment system.
            ``(5) Internet.--The term `Internet' means the international 
        computer network of interoperable packet switched data networks.
            ``(6) Interactive computer service.--The term `interactive 
        computer service' has the meaning given the term in section 
        230(f) of the Communications Act of 1934 (47 U.S.C. 230(f)).
            ``(7) Restricted transaction.--The term `restricted 
        transaction' means any transaction or transmittal involving any

[[Page 120 STAT. 1955]]

        credit, funds, instrument, or proceeds described in any 
        paragraph of section 5363 which the recipient is prohibited from 
        accepting under section 5363.
            ``(8) Secretary.--The term `Secretary' means the Secretary 
        of the Treasury.
            ``(9) State.--The term `State' means any State of the United 
        States, the District of Columbia, or any commonwealth, 
        territory, or other possession of the United States.
            ``(10) Unlawful internet gambling.--
                    ``(A) In general.--The term `unlawful Internet 
                gambling' means to place, receive, or otherwise 
                knowingly transmit a bet or wager by any means which 
                involves the use, at least in part, of the Internet 
                where such bet or wager is unlawful under any applicable 
                Federal or State law in the State or Tribal lands in 
                which the bet or wager is initiated, received, or 
                otherwise made.
                    ``(B) Intrastate transactions.--The term `unlawful 
                Internet gambling' does not include placing, receiving, 
                or otherwise transmitting a bet or wager where--
                          ``(i) the bet or wager is initiated and 
                      received or otherwise made exclusively within a 
                      single State;
                          ``(ii) the bet or wager and the method by 
                      which the bet or wager is initiated and received 
                      or otherwise made is expressly authorized by and 
                      placed in accordance with the laws of such State, 
                      and the State law or regulations include--
                                    ``(I) age and location verification 
                                requirements reasonably designed to 
                                block access to minors and persons 
                                located out of such State; and
                                    ``(II) appropriate data security 
                                standards to prevent unauthorized access 
                                by any person whose age and current 
                                location has not been verified in 
                                accordance with such State's law or 
                                regulations; and
                          ``(iii) the bet or wager does not violate any 
                      provision of--
                                    ``(I) the Interstate Horseracing Act 
                                of 1978 (15 U.S.C. 3001 et seq.);
                                    ``(II) chapter 178 of title 28 
                                (commonly known as the `Professional and 
                                Amateur Sports Protection Act');
                                    ``(III) the Gambling Devices 
                                Transportation Act (15 U.S.C. 1171 et 
                                seq.); or
                                    ``(IV) the Indian Gaming Regulatory 
                                Act (25 U.S.C. 2701 et seq.).
                    ``(C) Intratribal transactions.--The term `unlawful 
                Internet gambling' does not include placing, receiving, 
                or otherwise transmitting a bet or wager where--
                          ``(i) the bet or wager is initiated and 
                      received or otherwise made exclusively--
                                    ``(I) within the Indian lands of a 
                                single Indian tribe (as such terms are 
                                defined under the Indian Gaming 
                                Regulatory Act); or
                                    ``(II) between the Indian lands of 2 
                                or more Indian tribes to the extent that 
                                intertribal gaming is authorized by the 
                                Indian Gaming Regulatory Act;

[[Page 120 STAT. 1956]]

                          ``(ii) the bet or wager and the method by 
                      which the bet or wager is initiated and received 
                      or otherwise made is expressly authorized by and 
                      complies with the requirements of--
                                    ``(I) the applicable tribal 
                                ordinance or resolution approved by the 
                                Chairman of the National Indian Gaming 
                                Commission; and
                                    ``(II) with respect to class III 
                                gaming, the applicable Tribal-State 
                                Compact;
                          ``(iii) the applicable tribal ordinance or 
                      resolution or Tribal-State Compact includes--
                                    ``(I) age and location verification 
                                requirements reasonably designed to 
                                block access to minors and persons 
                                located out of the applicable Tribal 
                                lands; and
                                    ``(II) appropriate data security 
                                standards to prevent unauthorized access 
                                by any person whose age and current 
                                location has not been verified in 
                                accordance with the applicable tribal 
                                ordinance or resolution or Tribal-State 
                                Compact; and
                          ``(iv) the bet or wager does not violate any 
                      provision of--
                                    ``(I) the Interstate Horseracing Act 
                                of 1978 (15 U.S.C. 3001 et seq.);
                                    ``(II) chapter 178 of title 28 
                                (commonly known as the `Professional and 
                                Amateur Sports Protection Act');
                                    ``(III) the Gambling Devices 
                                Transportation Act (15 U.S.C. 1171 et 
                                seq.); or
                                    ``(IV) the Indian Gaming Regulatory 
                                Act (25 U.S.C. 2701 et seq.).
                    ``(D) Interstate horseracing.--
                          ``(i) In general.--The term `unlawful Internet 
                      gambling' shall not include any activity that is 
                      allowed under the Interstate Horseracing Act of 
                      1978 (15 U.S.C. 3001 et seq.).
                          ``(ii) Rule of construction regarding 
                      preemption.--Nothing in this subchapter may be 
                      construed to preempt any State law prohibiting 
                      gambling.
                          ``(iii) Sense of congress.--It is the sense of 
                      Congress that this subchapter shall not change 
                      which activities related to horse racing may or 
                      may not be allowed under Federal law. This 
                      subparagraph is intended to address concerns that 
                      this subchapter could have the effect of changing 
                      the existing relationship between the Interstate 
                      Horseracing Act and other Federal statutes in 
                      effect on the date of the enactment of this 
                      subchapter. This subchapter is not intended to 
                      change that relationship. This subchapter is not 
                      intended to resolve any existing disagreements 
                      over how to interpret the relationship between the 
                      Interstate Horseracing Act and other Federal 
                      statutes.
                    ``(E) Intermediate routing.--The intermediate 
                routing of electronic data shall not determine the 
                location or locations in which a bet or wager is 
                initiated, received, or otherwise made.
            ``(11) Other terms.--

[[Page 120 STAT. 1957]]

                    ``(A) Credit; creditor; credit card; and card 
                issuer.--The terms `credit', `creditor', `credit card', 
                and `card issuer' have the meanings given the terms in 
                section 103 of the Truth in Lending Act (15 U.S.C. 
                1602).
                    ``(B) Electronic fund transfer.--The term 
                `electronic fund transfer'--
                          ``(i) has the meaning given the term in 
                      section 903 of the Electronic Fund Transfer Act 
                      (15 U.S.C. 1693a), except that the term includes 
                      transfers that would otherwise be excluded under 
                      section 903(6)(E) of that Act; and
                          ``(ii) includes any fund transfer covered by 
                      Article 4A of the Uniform Commercial Code, as in 
                      effect in any State.
                    ``(C) Financial institution.--The term `financial 
                institution' has the meaning given the term in section 
                903 of the Electronic Fund Transfer Act, except that 
                such term does not include a casino, sports book, or 
                other business at or through which bets or wagers may be 
                placed or received.
                    ``(D) Insured depository institution.--The term 
                `insured depository institution'--
                          ``(i) has the meaning given the term in 
                      section 3(c) of the Federal Deposit Insurance Act 
                      (12 U.S.C. 1813(c)); and
                          ``(ii) includes an insured credit union (as 
                      defined in section 101 of the Federal Credit Union 
                      Act).
                    ``(E) Money transmitting business and money 
                transmitting service.--The terms `money transmitting 
                business' and `money transmitting service' have the 
                meanings given the terms in section 5330(d) (determined 
                without regard to any regulations prescribed by the 
                Secretary thereunder).

``Sec. 5363. Prohibition on acceptance of any financial instrument for 
                        unlawful Internet gambling

    ``No person engaged in the business of betting or wagering may 
knowingly accept, in connection with the participation of another person 
in unlawful Internet gambling--
            ``(1) credit, or the proceeds of credit, extended to or on 
        behalf of such other person (including credit extended through 
        the use of a credit card);
            ``(2) an electronic fund transfer, or funds transmitted by 
        or through a money transmitting business, or the proceeds of an 
        electronic fund transfer or money transmitting service, from or 
        on behalf of such other person;
            ``(3) any check, draft, or similar instrument which is drawn 
        by or on behalf of such other person and is drawn on or payable 
        at or through any financial institution; or
            ``(4) the proceeds of any other form of financial 
        transaction, as the Secretary and the Board of Governors of the 
        Federal Reserve System may jointly prescribe by regulation, 
        which involves a financial institution as a payor or financial 
        intermediary on behalf of or for the benefit of such other 
        person.

[[Page 120 STAT. 1958]]

``Sec. 5364. Policies and procedures to identify and prevent restricted 
                        transactions

    ``(a) Regulations.-- <<NOTE: Deadline.>> Before the end of the 270-
day period beginning on the date of the enactment of this subchapter, 
the Secretary and the Board of Governors of the Federal Reserve System, 
in consultation with the Attorney General, shall prescribe regulations 
(which the Secretary and the Board jointly determine to be appropriate) 
requiring each designated payment system, and all participants therein, 
to identify and block or otherwise prevent or prohibit restricted 
transactions through the establishment of policies and procedures 
reasonably designed to identify and block or otherwise prevent or 
prohibit the acceptance of restricted transactions in any of the 
following ways:
            ``(1) The establishment of policies and procedures that--
                    ``(A) allow the payment system and any person 
                involved in the payment system to identify restricted 
                transactions by means of codes in authorization messages 
                or by other means; and
                    ``(B) block restricted transactions identified as a 
                result of the policies and procedures developed pursuant 
                to subparagraph (A).
            ``(2) The establishment of policies and procedures that 
        prevent or prohibit the acceptance of the products or services 
        of the payment system in connection with a restricted 
        transaction.

    ``(b) Requirements for Policies and Procedures.--In prescribing 
regulations under subsection (a), the Secretary and the Board of 
Governors of the Federal Reserve System shall--
            ``(1) identify types of policies and procedures, including 
        nonexclusive examples, which would be deemed, as applicable, to 
        be reasonably designed to identify and block or otherwise 
        prevent or prohibit the acceptance of the products or services 
        with respect to each type of restricted transaction;
            ``(2) to the extent practical, permit any participant in a 
        payment system to choose among alternative means of identifying 
        and blocking, or otherwise preventing or prohibiting the 
        acceptance of the products or services of the payment system or 
        participant in connection with, restricted transactions;
            ``(3) exempt certain restricted transactions or designated 
        payment systems from any requirement imposed under such 
        regulations, if the Secretary and the Board jointly find that it 
        is not reasonably practical to identify and block, or otherwise 
        prevent or prohibit the acceptance of, such transactions; and
            ``(4) ensure that transactions in connection with any 
        activity excluded from the definition of unlawful internet 
        gambling in subparagraph (B), (C), or (D)(i) of section 5362(10) 
        are not blocked or otherwise prevented or prohibited by the 
        prescribed regulations.

    ``(c) Compliance With Payment System Policies and Procedures.--A 
financial transaction provider shall be considered to be in compliance 
with the regulations prescribed under subsection (a) if--
            ``(1) such person relies on and complies with the policies 
        and procedures of a designated payment system of which it is a 
        member or participant to--
                    ``(A) identify and block restricted transactions; or

[[Page 120 STAT. 1959]]

                    ``(B) otherwise prevent or prohibit the acceptance 
                of the products or services of the payment system, 
                member, or participant in connection with restricted 
                transactions; and
            ``(2) such policies and procedures of the designated payment 
        system comply with the requirements of regulations prescribed 
        under subsection (a).

    ``(d) No Liability for Blocking or Refusing To Honor Restricted 
Transactions.--A person that identifies and blocks a transaction, 
prevents or prohibits the acceptance of its products or services in 
connection with a transaction, or otherwise refuses to honor a 
transaction--
            ``(1) that is a restricted transaction;
            ``(2) that such person reasonably believes to be a 
        restricted transaction; or
            ``(3) as a designated payment system or a member of a 
        designated payment system in reliance on the policies and 
        procedures of the payment system, in an effort to comply with 
        regulations prescribed under subsection (a),

shall not be liable to any party for such action.
    ``(e) Regulatory Enforcement.--The requirements under this section 
shall be enforced exclusively by--
            ``(1) the Federal functional regulators, with respect to the 
        designated payment systems and financial transaction providers 
        subject to the respective jurisdiction of such regulators under 
        section 505(a) of the Gramm-Leach-Bliley Act and section 5g of 
        the Commodities Exchange Act; and
            ``(2) the Federal Trade Commission, with respect to 
        designated payment systems and financial transaction providers 
        not otherwise subject to the jurisdiction of any Federal 
        functional regulators (including the Commission) as described in 
        paragraph (1).

``Sec. 5365. Civil remedies

    ``(a) Jurisdiction.--In addition to any other remedy under current 
law, the district courts of the United States shall have original and 
exclusive jurisdiction to prevent and restrain restricted transactions 
by issuing appropriate orders in accordance with this section, 
regardless of whether a prosecution has been initiated under this 
subchapter.
    ``(b) Proceedings.--
            ``(1) Institution by federal government.--
                    ``(A) In general.--The United States, acting through 
                the Attorney General, may institute proceedings under 
                this section to prevent or restrain a restricted 
                transaction.
                    ``(B) Relief.--Upon application of the United States 
                under this paragraph, the district court may enter a 
                temporary restraining order, a preliminary injunction, 
                or an injunction against any person to prevent or 
                restrain a restricted transaction, in accordance with 
                rule 65 of the Federal Rules of Civil Procedure.
            ``(2) Institution by state attorney general.--
                    ``(A) In general.--The attorney general (or other 
                appropriate State official) of a State in which a 
                restricted transaction allegedly has been or will be 
                initiated, received, or otherwise made may institute 
                proceedings under this

[[Page 120 STAT. 1960]]

                section to prevent or restrain the violation or 
                threatened violation.
                    ``(B) Relief.--Upon application of the attorney 
                general (or other appropriate State official) of an 
                affected State under this paragraph, the district court 
                may enter a temporary restraining order, a preliminary 
                injunction, or an injunction against any person to 
                prevent or restrain a restricted transaction, in 
                accordance with rule 65 of the Federal Rules of Civil 
                Procedure.
            ``(3) Indian lands.--
                    ``(A) In general.--Notwithstanding paragraphs (1) 
                and (2), for a restricted transaction that allegedly has 
                been or will be initiated, received, or otherwise made 
                on Indian lands (as that term is defined in section 4 of 
                the Indian Gaming Regulatory Act)--
                          ``(i) the United States shall have the 
                      enforcement authority provided under paragraph 
                      (1); and
                          ``(ii) the enforcement authorities specified 
                      in an applicable Tribal-State Compact negotiated 
                      under section 11 of the Indian Gaming Regulatory 
                      Act (25 U.S.C. 2710) shall be carried out in 
                      accordance with that compact.
                    ``(B) Rule of construction.--No provision of this 
                section shall be construed as altering, superseding, or 
                otherwise affecting the application of the Indian Gaming 
                Regulatory Act.

    ``(c) Limitation Relating to Interactive Computer Services.--
            ``(1) In general.--Relief granted under this section against 
        an interactive computer service shall--
                    ``(A) be limited to the removal of, or disabling of 
                access to, an online site violating section 5363, or a 
                hypertext link to an online site violating such section, 
                that resides on a computer server that such service 
                controls or operates, except that the limitation in this 
                subparagraph shall not apply if the service is subject 
                to liability under this section under section 5367;
                    ``(B) be available only after notice to the 
                interactive computer service and an opportunity for the 
                service to appear are provided;
                    ``(C) not impose any obligation on an interactive 
                computer service to monitor its service or to 
                affirmatively seek facts indicating activity violating 
                this subchapter;
                    ``(D) specify the interactive computer service to 
                which it applies; and
                    ``(E) specifically identify the location of the 
                online site or hypertext link to be removed or access to 
                which is to be disabled.
            ``(2) Coordination with other law.--An interactive computer 
        service that does not violate this subchapter shall not be 
        liable under section 1084(d) of title 18, except that the 
        limitation in this paragraph shall not apply if an interactive 
        computer service has actual knowledge and control of bets and 
        wagers and--
                    ``(A) operates, manages, supervises, or directs an 
                Internet website at which unlawful bets or wagers may be 
                placed, received, or otherwise made or at which unlawful

[[Page 120 STAT. 1961]]

                bets or wagers are offered to be placed, received, or 
                otherwise made; or
                    ``(B) owns or controls, or is owned or controlled 
                by, any person who operates, manages, supervises, or 
                directs an Internet website at which unlawful bets or 
                wagers may be placed, received, or otherwise made, or at 
                which unlawful bets or wagers are offered to be placed, 
                received, or otherwise made.

    ``(d) Limitation on Injunctions Against Regulated Persons.--
Notwithstanding any other provision of this section, and subject to 
section 5367, no provision of this subchapter shall be construed as 
authorizing the Attorney General of the United States, or the attorney 
general (or other appropriate State official) of any State to institute 
proceedings to prevent or restrain a restricted transaction against any 
financial transaction provider, to the extent that the person is acting 
as a financial transaction provider.

``Sec. 5366. Criminal penalties

    ``(a) In General.--Any person who violates section 5363 shall be 
fined under title 18, imprisoned for not more than 5 years, or both.
    ``(b) Permanent Injunction.--Upon conviction of a person under this 
section, the court may enter a permanent injunction enjoining such 
person from placing, receiving, or otherwise making bets or wagers or 
sending, receiving, or inviting information assisting in the placing of 
bets or wagers.

``Sec. 5367. Circumventions prohibited

    ``Notwithstanding section 5362(2), a financial transaction provider, 
or any interactive computer service or telecommunications service, may 
be liable under this subchapter if such person has actual knowledge and 
control of bets and wagers, and--
            ``(1) operates, manages, supervises, or directs an Internet 
        website at which unlawful bets or wagers may be placed, 
        received, or otherwise made, or at which unlawful bets or wagers 
        are offered to be placed, received, or otherwise made; or
            ``(2) owns or controls, or is owned or controlled by, any 
        person who operates, manages, supervises, or directs an Internet 
        website at which unlawful bets or wagers may be placed, 
        received, or otherwise made, or at which unlawful bets or wagers 
        are offered to be placed, received, or otherwise made.''.

    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 53 of title 31, United States Code, is amended by adding at the 
end the following:

  ``subchapter iv--prohibition on funding of unlawful internet gambling

``5361. Congressional findings and purpose.
``5362. Definitions.
``5363. Prohibition on acceptance of any financial instrument for 
           unlawful Internet gambling.
``5364. Policies and procedures to identify and prevent restricted 
           transactions.
``5365. Civil remedies.
``5366. Criminal penalties.
``5367. Circumventions prohibited.''.

[[Page 120 STAT. 1962]]

SEC. 803. <<NOTE: 31 USC 5361 note.>> INTERNET GAMBLING IN OR 
                        THROUGH FOREIGN JURISDICTIONS.

    (a) In General.--In deliberations between the United States 
Government and any foreign country on money laundering, corruption, and 
crime issues, the United States Government should--
            (1) encourage cooperation by foreign governments and 
        relevant international fora in identifying whether Internet 
        gambling operations are being used for money laundering, 
        corruption, or other crimes;
            (2) advance policies that promote the cooperation of foreign 
        governments, through information sharing or other measures, in 
        the enforcement of this Act; and
            (3) encourage the Financial Action Task Force on Money 
        Laundering, in its annual report on money laundering typologies, 
        to study the extent to which Internet gambling operations are 
        being used for money laundering purposes.

    (b) Report Required.--The Secretary of the Treasury shall submit an 
annual report to the Congress on any deliberations between the United 
States and other countries on issues relating to Internet gambling.

    Approved October 13, 2006.

LEGISLATIVE HISTORY--H.R. 4954 (S. 2008) (S. 2459):
---------------------------------------------------------------------------

HOUSE REPORTS: Nos. 109-447, Pt. 1 (Comm. on Homeland Security) and 109-
711 (Comm. of Conference).
CONGRESSIONAL RECORD, Vol. 152 (2006):
            May 4, considered and passed House.
            Sept. 7, 8, 11-14, considered and passed Senate, amended.
            Sept. 29, House and Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 42 (2006):
            Oct. 13, Presidential remarks and statement.

                                  <all>