Report text available as:

(PDF provides a complete and accurate display of this text.) Tip?



113th Congress }                                       {  Rept. 113-511
                        HOUSE OF REPRESENTATIVES
 2d Session    }                                       {         Part 1

======================================================================



 
                 PRECLEARANCE AUTHORIZATION ACT OF 2014

                                _______
                                

  July 3, 2014.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. McCaul, from the Committee on Homeland Security, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3488]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security, to whom was referred 
the bill (H.R. 3488) to establish the conditions under which 
the Secretary of Homeland Security may establish preclearance 
facilities, conduct preclearance operations, and provide 
customs services outside the United States, and for other 
purposes, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Preclearance Authorization Act of 
2014''.

SEC. 2. DEFINITION.

  In this Act, the term ``appropriate congressional committees'' means 
the Committee on Homeland Security and the Committee on Ways and Means 
of the House of Representatives and the Committee on Homeland Security 
and Governmental Affairs and the Committee on Finance of the Senate.

SEC. 3. ESTABLISHMENT OF PRECLEARANCE OPERATIONS.

  Pursuant to section 1629 of title 19, United States Code, and subject 
to section 5, the Secretary of Homeland Security may establish U.S. 
Customs and Border Protection preclearance operations in a foreign 
country to--
          (1) prevent terrorists, instruments of terrorism, and other 
        security threats from entering the United States;
          (2) prevent inadmissible persons from entering the United 
        States;
          (3) ensure merchandise destined for the United States 
        complies with applicable laws;
          (4) ensure the prompt processing of persons eligible to 
        travel to the United States; and
          (5) accomplish such other objectives as the Secretary 
        determines necessary to protect the United States.

SEC. 4. NOTIFICATION AND CERTIFICATION TO CONGRESS.

  (a) Notification.--Not later than 180 days before entering into an 
agreement with the government of a foreign country to establish U.S. 
Customs and Border Protection preclearance operations in such foreign 
country, the Secretary of Homeland Security shall provide to the 
appropriate congressional committees the following:
          (1) A copy of the proposed agreement to establish such 
        preclearance operations, including an identification of the 
        foreign country with which U.S. Customs and Border Protection 
        intends to enter into a preclearance agreement, and the 
        location at which such preclearance operations will be 
        conducted.
          (2) An estimate of the date on which U.S. Customs and Border 
        Protection intends to establish preclearance operations under 
        such agreement.
          (3) The anticipated funding sources for preclearance 
        operations under such agreement, and other funding sources 
        considered.
          (4) An assessment of the impact such preclearance operations 
        will have on legitimate trade and travel, including potential 
        impacts on passengers traveling to the United States.
          (5) A homeland security threat assessment for the country in 
        which such preclearance operations are to be established.
          (6) An assessment of the impacts such preclearance operations 
        will have on U.S. Customs and Border Protection domestic port 
        of entry staffing.
          (7) Information on potential economic, competitive, and job 
        impacts on United States air carriers associated with 
        establishing such preclearance operations.
          (8) Information on the anticipated homeland security benefits 
        associated with establishing such preclearance operations.
          (9) Information on potential security vulnerabilities 
        associated with commencing such preclearance operations, and 
        mitigation plans to address such potential security 
        vulnerabilities.
          (10) A U.S. Customs and Border Protection staffing model for 
        such preclearance operations, and plans for how such positions 
        would be filled.
          (11) Information on the anticipated costs over the next five 
        fiscal years associated with commencing such preclearance 
        operations.
          (12) A copy of the agreement referred to in subsection (a) of 
        section 5.
          (13) Other factors that the Secretary of Homeland Security 
        determines to be necessary for Congress to comprehensively 
        assess the appropriateness of commencing such preclearance 
        operations.
  (b) Certifications Relating to Preclearance Operations Established at 
Airports.--In the case of an airport, in addition to the notification 
requirements under subsection (a), not later than 90 days before 
entering into an agreement with the government of a foreign country to 
establish U.S. Customs and Border Protection preclearance operations at 
an airport in such foreign country, the Secretary of Homeland Security 
shall provide to the appropriate congressional committees the 
following:
          (1) A certification that preclearance operations under such 
        preclearance agreement would provide homeland security benefits 
        to the United States.
          (2) A certification that preclearance operations within such 
        foreign country will be established under such agreement only 
        if--
                  (A) at least one United States passenger carrier 
                operates at such airport; and
                  (B) the access of all United States passenger 
                carriers to such preclearance operations is the same as 
                the access of any non-United States passenger carrier.
          (3) A certification that the Secretary of Homeland Security 
        has considered alternative options to preclearance operations 
        and has determined that such options are not the most effective 
        means of achieving the objectives specified in section 3.
          (4) A certification that the establishment of preclearance 
        operations in such foreign country will not significantly 
        increase customs processing times at United States airports.
          (5) An explanation of other objectives that will be served by 
        the establishment of preclearance operations in such foreign 
        country.
          (6) A certification that representatives from U.S. Customs 
        and Border Protection consulted publically with interested 
        parties, including providers of commercial air service in the 
        United States, employees of such providers, security experts, 
        and such other parties as the Secretary determines to be 
        appropriate, before entering into such an agreement with such 
        foreign government.
          (7) A report detailing the basis for the certifications 
        referred to in paragraphs (1) through (6).
  (c) Modification of Existing Agreements.--Not later than 30 days 
before substantially modifying a preclearance agreement with the 
government of a foreign country in effect as of the date of the 
enactment of this Act, the Secretary of Homeland Security shall provide 
to the appropriate congressional committees a copy of the proposed 
agreement, as modified, and the justification for such modification.
  (d) Remediation Plan.--
          (1) In general.--The Commissioner of U.S. Customs and Border 
        Protection shall monthly measure the average customs processing 
        time to enter the 25 United States airports that support the 
        highest volume of international travel (as determined by 
        available Federal passenger data) and provide to the 
        appropriate congressional committees such measurements.
          (2) Assessment.--Based on the measurements described in 
        paragraph (1), the Commissioner of U.S. Customs and Border 
        Protection shall quarterly assess whether the average customs 
        processing time referred to in such paragraph significantly 
        exceeds the average customs processing time to enter the United 
        States through a prclearance operation.
          (3) Submission.--Based on the assessment conducted under 
        paragraph (2), if the Commissioner of U.S. Customs and Border 
        Protection determines that the average customs processing time 
        referred to in paragraph (1) significantly exceeds the average 
        customs processing time to enter the United States through a 
        preclearance operation described in paragraph (2), the 
        Commissioner shall, not later than 60 days after making such 
        determination, provide to the appropriate congressional 
        committees a remediation plan for reducing such average customs 
        processing time referred to in paragraph (1).
          (4) Implementation.--Not later than 30 days after submitting 
        the remediation plan referred to in paragraph (3), the 
        Commissioner of United States Customs and Border Protection 
        shall implement those portions of such plan that can be carried 
        out using existing resources, excluding the transfer of 
        personnel.
          (5) Suspension.--If the Commissioner of U.S. Customs and 
        Border Protection does not submit the remediation plan referred 
        to in paragraph (3) within 60 days in accordance with such 
        paragraph, the Commissioner may not, until such time as such 
        remediation plan is submitted, conduct any negotiations 
        relating to preclearance operations at an airport in any 
        country or commence any such preclearance operations.
          (6) Stakeholder recommendations.--The remediation plan 
        described in paragraph (3) shall consider recommendations 
        solicited from relevant stakeholders.
  (e) Classified Report.--The assessment required pursuant to 
subsection (a)(5) and the report required pursuant to subsection (b)(7) 
may be submitted in classified form if the Secretary of Homeland 
Security determines that such is appropriate.

SEC. 5. AVIATION SECURITY SCREENING AT PRECLEARANCE AIRPORTS.

  (a) Aviation Security Standards Agreement.--Prior to the commencement 
of preclearance operations at an airport in a foreign country under 
this Act, the Administrator of the Transportation Security 
Administration shall enter into an agreement with the government of 
such foreign country that delineates and requires the adoption of 
aviation security screening standards that are determined by the 
Administrator to be comparable to those of the United States.
  (b) Aviation Security Rescreening.--If the Administrator of the 
Transportation Security Administration determines that the government 
of a foreign country has not maintained security standards and 
protocols comparable to those of the United States at airports at which 
preclearance operations have been established in accordance with an 
agreement entered into pursuant to subsection (a), the Administrator 
shall require the rescreening in the United States by the 
Transportation Security Administration of passengers and their property 
before such passengers may deplane into sterile areas of airports in 
the United States.
  (c) Selectees.--Any passenger who is determined to be a selectee 
based on a check against a terrorist watch list and arrives on a flight 
originating from a foreign airport at which preclearance operations 
have been established in accordance with an agreement entered into 
pursuant to subsection (a), shall be required to undergo security 
rescreening by the Transportation Security Administration before being 
permitted to board a domestic flight in the United States.

SEC. 6. LOST AND STOLEN PASSPORTS.

  The Secretary of Homeland Security may not enter into or renew an 
agreement with the government of a foreign country to establish or 
maintain U.S. Customs and Border Protection preclearance operations at 
an airport in such foreign country unless such government certifies--
          (1) that it routinely submits information about lost and 
        stolen passports of its citizens and nationals to INTERPOL's 
        Stolen and Lost Travel Document database; or
          (2) makes available to the United States Government such 
        information through another comparable means of reporting.

SEC. 7. EFFECTIVE DATE.

  Except for subsection (c) of section 4, this Act shall apply only to 
the establishment of preclearance operations in a foreign country in 
which no preclearance operations have been established as of the date 
of the enactment of this Act.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     4
Background and Need for Legislation..............................     4
Hearings.........................................................     5
Committee Consideration..........................................     5
Committee Votes..................................................     6
Committee Oversight Findings.....................................     6
New Budget Authority, Entitlement Authority, and Tax Expenditures     6
Congressional Budget Office Estimate.............................     7
Statement of General Performance Goals and Objectives............     7
Duplicative Federal Programs.....................................     8
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     8
Federal Mandates Statement.......................................     8
Preemption Clarification.........................................     8
Disclosure of Directed Rule Makings..............................     8
Advisory Committee Statement.....................................     8
Applicability to Legislative Branch..............................     8
Section-by-Section Analysis of the Legislation...................     8
Changes in Existing Law Made by the Bill, as Reported............    13
Committee Correspondence.........................................    14

                          PURPOSE AND SUMMARY

    The purpose of H.R. 3488 is to set forth the conditions 
under which the Secretary of Homeland Security may establish 
preclearance facilities, conduct preclearance operations, and 
provide customs services outside the United States, and for 
other purposes.

                  BACKGROUND AND NEED FOR LEGISLATION

    H.R. 3488 would authorize the Secretary of Homeland 
Security to establish new U.S. Customs and Border Protection 
(CBP) preclearance operations in foreign countries. The bill 
includes a series of benchmarks and timelines necessary to 
establish a preclearance operation and ensure transparency 
while the Department engages with foreign governments.
    CBP's preclearance operations involve the inspection and 
examination of travelers and their merchandise by CBP officers 
in foreign locations prior to embarking to the United States. 
Once cleared on foreign soil, passengers do not have to clear 
customs upon arrival to the United States. Pre-inspection was 
first established in Toronto, Canada in 1952, and currently, 
CBP operates 16 preclearance facilities in Canada, the Bahamas, 
Bermuda, Aruba, Ireland, and, most recently, in the United Arab 
Emirates (UAE).
    DHS began bilateral negotiations with the government of UAE 
in August 2012 to establish preclearance operations at Abu 
Dhabi International Airport. Negotiations were finalized on 
April 15, 2013, and preclearance operations commenced in late 
2013. The CBP preclearance facility in Abu Dhabi was 
established under a reimbursable agreement between DHS and the 
UAE, under which the UAE government reimburses CBP up to 85 
percent for personnel and other costs.
    In addition, the UAE government spent more than $60 million 
building a customized facility, to CBP specifications, in 
anticipation of the commencement of preclearance operations. As 
part of the agreement with UAE, CBP officers were granted 
significant authorities, including the ability to carry 
firearms in the course of their duties. CBP has indicated that 
the establishment of preclearance in Abu Dhabi is almost 
completely security focused, due to the significant number of 
watch list hits and suspicious travel pattern information 
originating from the region.
    Despite the security-focused rationale, this legislation 
was introduced as a result of significant concern that this 
agreement was executed without suitable Congressional 
notification, or an adequate security justification for 
establishing preclearance operations in Abu Dhabi. Many U.S. 
domestic airlines have argued that the establishment of a 
preclearance facility in Abu Dhabi, where no US domestic 
carrier currently fly, puts U.S. carriers at a significant 
competitive and economic disadvantage, as customs wait times 
are generally shorter at preclearance facilities compared to 
wait times in the United States.
    As a result, this legislation is needed to strengthen 
Congressional and stakeholder notification, and apply security-
related and other conditions to be met prior to any future 
expansion of preclearance operations.

                                HEARINGS

    The Committee did not hold any legislative hearings on H.R. 
3488, however, the Committee held an oversight hearing detailed 
below:
    On April 4, 2014, the Subcommittee on Border and Maritime 
Security held a hearing entitled ``Passport Fraud: An 
International Vulnerability.'' The Subcommittee received 
testimony from Hon. Alan D. Bersin, Assistant Secretary of 
International Affairs and Chief Diplomatic Officer, U.S. 
Department of Homeland Security; Mr. John Wagner, Acting Deputy 
Assistant Commissioner, Office of Field Operations, Customs and 
Border Protection, U.S. Department of Homeland Security; Ms. 
Brenda S. Sprague, Deputy Assistant Secretary for Passport 
Services, Bureau of Consular Affairs, U.S. Department of State; 
and Hon. Shawn A. Bray, Director, INTERPOL Washington, U.S. 
National Central Bureau, U.S. Department of Justice.

                        COMMITTEE CONSIDERATION

    The Committee met on June 11, 2014, to consider H.R. 3488, 
and ordered the measure to be reported to the House with a 
favorable recommendation, amended, by voice vote. The Committee 
took the following actions:
    The following amendments were offered:

 An Amendment in the Nature of a Substitute offered by Mr. 
McCaul (#1); was AGREED TO, amended, by voice vote.

 An Amendment by Mr. Meehan to the Amendment in the Nature of a 
Substitute to H.R. 3488 (#1A); was AGREED TO by voice vote.

     In section 4(a), redesignate paragraphs (7) through (10) 
as paragraphs (8) through (11), respectively.
     In section 4(a), insert after paragraph (6) the following:
     (7) Information on potential economic, competitive, and 
job impacts on United States air carriers associated with 
establishing such preclearance operations.;

 An en bloc amendment to the Amendment in the Nature of a 
Substitute to H.R. 3488 offered by Mr. Higgins (#1B); was 
AGREED TO by voice vote.

     Consisting of the following amendments:
    An amendment:
     Page 4, line 13, insert ``at an airport'' before ``in such foreign 
country''.
     Page 8, line 10, insert ``at an airport'' before ``in such''.

     An amendment by Mr. Thompson:
     In section 5, add at the end a new subsection entitled ``(c) 
Selectees.''

 An amendment to the Amendment in the Nature of a Substitute to 
H.R. 3488 offered by Mr. Chaffetz (#1C); was AGREED TO by voice 
vote.

     Amend subsection (d) of section 4 to insert a new 
subsection entitled ``(d) Remediation Plan.''

    The Subcommittee on Border and Maritime Security met on May 
20, 2014, to consider H.R. 3488, and ordered the measure to be 
forwarded to the Full Committee with a favorable 
recommendation, amended, by voice vote. The Subcommittee took 
the following actions:

    The following amendments were offered:

 An Amendment in the Nature of a Substitute offered by Mrs. 
Miller of Michigan (#1); was AGREED TO by voice vote.

 An en bloc amendment to the Amendment in the Nature of a 
Substitute to H.R. 3488 offered by Ms. Jackson Lee (#1A); was 
AGREED TO by voice vote.

     In section 3, insert ``and subject to section 5,'' before 
``the Secretary''.
     Redesignate section 5 as section 6.
     Insert after section 4 a new section entitled ``Sec. 5. 
Lost and Stolen Passports.''
     In section 4(a), strike paragraph (4).
     In section 4(a), add at the end new subsections 4 through 
8.

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto.
    No recorded votes were requested during consideration of 
H.R. 3488.

                      COMMITTEE OVERSIGHT FINDINGS

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has held oversight 
hearings and made findings that are reflected in this report.

   NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
3488, would result in no new or increased budget authority, 
entitlement authority, or tax expenditures or revenues.

                  CONGRESSIONAL BUDGET OFFICE ESTIMATE

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 30, 2014.
Hon. Michael McCaul,
Chairman, Committee on Homeland Security,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3488, the 
Preclearance Authorization Act of 2014.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz.
            Sincerely,
                                               Douglas W. Elmendorf
    Enclosure.

H.R. 3488--Preclearance Authorization Act of 2014

    H.R. 3488 would authorize Customs and Border Protection 
(CBP) in the Department of Homeland Security to establish 
preclearance (inspection) stations in foreign countries. CBP 
currently operates preclearance facilities in about a dozen 
locations, mostly in Canada. The bill would require the agency 
to notify the Congress before establishing preclearance 
stations in countries that currently have none. H.R. 3488 also 
would specify policies and requirements to ensure that aviation 
security screening performed at foreign airports engaged in 
preclearance operations meet U.S. standards.
    CBP anticipates opening new preclearance stations over the 
next several years and can do so under current law, so we 
estimate that implementing the bill would not significantly 
affect agency spending. CBO also expects that implementing the 
bill's requirements related to aviation security would not 
significantly affect federal costs. Enacting the legislation 
would not affect direct spending or revenues; therefore, pay-
as-you-go procedures do not apply.
    H.R. 3488 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contacts for this estimate are Mark Grabowicz 
and Megan Carroll. The estimate was approved by Theresa Gullo, 
Deputy Assistant Director for Budget Analysis.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, H.R. 3488 contains the following 
general performance goals and objectives, including outcome 
related goals and objectives authorized.
    The general performance goals and objectives of H.R. 3488 
is to require greater transparency and accountability from 
United States Customs and Border Protection (CBP) when they 
establish preclearance operations in foreign countries. This is 
accomplished through several Congressional notifications and 
certifications, as well as requirements regarding 
transportation security screening standards. While the 
Committee believes that CBP's preclearance operations provide a 
strong homeland security benefit to the United States, the 
recent establishment of a preclearance operation in Abu Dhabi 
caused great concern among members of Congress for its lack of 
transparency and adverse competitive impacts it may have on 
U.S. air carriers.

                      DUPLICATIVE FEDERAL PROGRAMS

    The Committee finds that H.R. 3488 does not contain any 
provision that establishes or reauthorizes a program known to 
be duplicative of another Federal program.

   CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF 
                                BENEFITS

    In compliance with rule XXI of the Rules of the House of 
Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule 
XXI.

                       FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                        PREEMPTION CLARIFICATION

    In compliance with section 423 of the Congressional Budget 
Act of 1974, requiring the report of any Committee on a bill or 
joint resolution to include a statement on the extent to which 
the bill or joint resolution is intended to preempt State, 
local, or Tribal law, the Committee finds that H.R. 3488 does 
not preempt any State, local, or Tribal law.

                  DISCLOSURE OF DIRECTED RULE MAKINGS

    The Committee estimates that H.R. 3488 would require no 
directed rule makings.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1.   Short Title.

    This section provides that the bill may be cited as the 
``Preclearance Authorization Act of 2014''.

Sec. 2.   Definition.

    The appropriate Congressional committees in this 
legislation include the Committee on Homeland Security and the 
Committee on Ways and Means of the House of Representatives and 
the Committee on Homeland Security and Governmental Affairs and 
the Committee on Finance of the Senate.

Sec. 3.   Establishment of Preclearance Operations.

    This section authorizes the Secretary of Homeland Security 
to establish preclearance operations in a foreign country.
    The Committee believes the primary function of a newly 
established preclearance facility must be National security and 
that establishing such operations must be done in order to:
           Prevent terrorists, instruments of 
        terrorism, and other security threats from entering the 
        United States;
           Prevent inadmissible persons from entering 
        the United States;
           Ensure merchandise destined for the United 
        States complies with applicable laws;
           Ensure the prompt processing of persons 
        eligible to travel to the United States; and
           Accomplish such other objectives as the 
        Secretary determines necessary to protect the United 
        States.
    The Committee has a history of supporting preclearance 
operations as a means to ease travel facilitation, in locations 
such as Canada, Ireland and the Caribbean, and also recognizes 
preclearance operations can provide a significant homeland 
security benefit, especially after the terror attacks of 
September 11, 2001. The Committee continues to support Federal 
efforts to ``push our borders out'' to detect and deter threats 
before they reach our shores. However, the Committee was 
troubled that the Department initially failed to make a 
security case for the preclearance facility in Abu Dhabi, 
raising questions about the suitability of the location and 
other aspects of the process for selection. The Committee 
believes any future preclearance facilities should be 
established to meet the criteria required put forth in this 
Act.

Sec. 4.   Notification and Certification to Congress.

(a) Notification.
    This subsection requires the Secretary to notify Congress 
180 days before entering into an agreement with a foreign 
government to establish a preclearance operation.
    The Secretary would be required to provide:
           A copy of the proposed agreement specifying 
        date, location, and funding sources;
           An impact assessment on legitimate trade and 
        travel;
           A homeland security threat assessment at the 
        proposed preclearance location;
           An impact assessment for Customs and Border 
        Protection staffing at domestic ports of entry;
           Information on potential economic, 
        competitive, and job impacts on United States air 
        carriers associated with establishing such preclearance 
        operations;
           Information on the anticipated homeland 
        security benefits;
           Potential security vulnerabilities and 
        mitigation plans;
           CBP's staffing model for such preclearance 
        operations;
           Anticipated costs for the next five fiscal 
        years;
           A copy of the agreement; and
           Other factors the Secretary determines to be 
        necessary for Congress to assess the appropriateness of 
        commencing such preclearance facility.
    The Committee was troubled at the failure of the DHS 
Secretary to inform Congress about negotiations with the United 
Arab Emirates to establish preclearance operations at Abu Dhabi 
International Airport, as well as the lack of consideration of 
the potential negative impact establishing such a facility may 
have on U.S. air carriers. The Committee believes that Congress 
must be made aware of any proposed agreements and be given 
ample time to review the specifics about such agreements. In 
the future, the Committee expects the Secretary to provide 
Congress with advanced notification of any proposed agreement 
with a foreign country and provide clear and compelling 
justification for any future preclearance operation, as 
required under this Act.
(b) Certifications Relating to Preclearance Operations 
Established at Airports.
    This section requires the Secretary to report to Congress 
90 days before entering into an agreement with a foreign 
government to establish a preclearance operation.
    The Secretary would be required to certify:
           The homeland security benefits of the 
        preclearance operation;
           That at least one United States passenger 
        carrier operates at that location and all United States 
        passenger carriers have the same access as non-United 
        States passenger carriers;
           There are no alternate options to 
        preclearance that would be more effective;
           That foreign government screening procedures 
        meet or exceed United States screening requirements;
           The Secretary has considered alternative 
        options to preclearance operations;
           That new airport preclearance operations 
        will not increase customs processing times at United 
        States airports;
           A certification that CBP consulted 
        interested parties and stakeholders before entering 
        into such agreement; and
           A report detailing the basis for the 
        certifications referred to above.
    The Committee views this subsection as an additional layer 
of transparency to Congress before the Secretary enters into an 
agreement with a foreign country to establish preclearance 
operations.
    DHS did not assess such items when establishing 
preclearance Operations in Abu Dhabi and the Committee believes 
the required certifications in this subsection by the Secretary 
will ensure any new preclearance operations will include 
articulable, tangible security benefits to push our borders out 
and prevent dangerous or inadmissible persons and goods from 
entering the United States.
    The Committee expects that the report required in this 
subsection to clearly justify each component required under the 
certification and provide detailed analysis as to how the 
Department evaluated such requirement.
    While the Committee strongly supports the concept of using 
preclearance facilities to push our borders out, the Committee 
believes the Department must also weigh the economic and 
competitive impact facilities may have on domestic U.S. 
carriers as well as impact on customs processing times 
domestically. When considering the establishment of such 
facilities, the Committee expects that any future agreements to 
establish preclearance operations thoroughly consider the 
economic and competitiveness impacts such an agreement will 
have, in addition important security benefits that may be 
realized.

(c) Modification of Existing Agreements.
    This section requires the Secretary to notify Congress 30 
days before substantially modifying an existing preclearance 
operation agreement with a foreign government. The Secretary 
must provide Congress a copy of proposed agreement and 
justification for the modification.
    The Committee believes that substantial changes to a 
preclearance agreement should require a notification to 
Congress to allow Congress to provide more significant 
oversight over modifications to current agreements.

(d) Remediation Plan.
    This subsection requires the Secretary of Homeland Security 
to provide to Congress a remediation plan to reduce customs 
processing times at the 25 United States airports with the 
highest volume of international travel, and implement such 
plan, which includes recommendations solicited from relevant 
stakeholders, if the average quarterly customs processing times 
of those 25 United States airports is significantly greater 
than the average quarterly customs processing times at a 
preclearance operation. If the Commissioner does not submit the 
remediation plan within 60 days, the Commissioner may not 
conduct any negotiations relating to preclearance operations at 
an airport, or commence preclearance operations.
    The Committee realizes that long lines at peak hours are 
common place for larger airports like JFK, Chicago O'Hare and 
LAX. The Committee wants to ensure that as CBP reassigns 
veteran officers overseas to support preclearance operations, 
CBP takes every action possible to mitigate any negative 
impacts to domestic customs operations.
    The Committee directs CBP to measure monthly wait times 
domestically and then compare those wait times against 
preclearance operations overseas. If wait times domestically 
significantly exceed those of new preclearance operations, the 
Committee requires CBP to submit a remediation plan to the 
Congress within 60 days to fix this disparity and reduce 
domestic wait times. While the Committee recognizes 
preclearance operations may provide a significant homeland 
security benefit, it also recognizes there is a tremendous 
trade and travel facilitation benefit. The Committee wants to 
ensure that such facilitation benefit does not come at the 
expense of domestic airports.
    Additionally, the Committee expects, as a part of this 
remediation plan, that CBP consult with the appropriate 
stakeholders, such U.S. air carriers and airport authorities to 
take their suggestions into account.
    The Committee also expects CBP to first use existing 
resources to reduce wait times, look at innovative ways to use 
technology, and streamline processes, and strongly discourages 
transferring an officer from a different port of entry, thereby 
causing wait times to increase at an other location.

(e) Classified Report.
    This subsection allows the homeland security threat 
assessment in Section 4(a)(3) and the certification for a 
establishing a new preclearance operation in Section 4(b)(8) to 
be classified, if appropriate.

Sec. 5.   Aviation Security Screening at Preclearance Airports.

    This section requires the aviation security screening 
standards at a preclearance location to be comparable to that 
required by the Transpiration Security Administration (TSA). 
This section also requires rescreening of passengers and 
property by the TSA in the United States if, at any time, the 
aviation security screening standards at a preclearance 
location are not maintained to TSA standards or if an 
individual is designated as a selectee.
    The Committee understands that while TSA has certain 
unpredictable measures in place at airports to deal with 
selectees arriving from preclearance airports, unnecessary 
vulnerabilities should not be created by taking a hands-off 
approach when higher-risk passengers arrive in the United 
States from a preclearance airport.
    The Committee supports a risk-based approach to security, 
requiring higher-risk passengers to be screened by TSA prior to 
boarding a domestic flight, while also ensuring that TSA has 
flexibility in how it carries out such screening.

Sec. 6.   Lost and Stolen Passports.

    This section requires any foreign country where a 
preclearance operation agreement is to be established or 
renewed to routinely submit information to INTERPOL's Stolen 
and Lost Travel Document (SLTD) database and make that 
information available to the U.S. government.
    Travel document security is a cornerstone of the United 
States' efforts to secure the homeland, and is integral to 
pushing our borders out. Document security vulnerabilities can 
be easily exploited by those who would do us harm therefore, 
the Committee believes the United States must have robust 
measures in place to deter and detect those traveling on stolen 
and fraudulent documents.
    After the terror attacks of September 11, 2001, the 
international community, through INTERPOL, created the SLTD 
database to provide countries the mechanism to both send 
information to a central repository and check against that 
database to make sure no one could enter a country, or board a 
plane with a known lost or stolen passport
    In April 2014, the Subcommittee on Border and Maritime 
Security held a hearing on the issue of passport fraud where it 
was learned that, with only a few exceptions, only those 
nations that are members of the Visa Waiver Program regularly 
submit timely data to the SLTD. The Committee believes 
population of INTERPOL's SLTD database provides significant 
aviation and homeland security benefits to the United States, 
and therefore should be a requirement for any country wishing 
to enter into preclearance agreement with the United States.

Sec. 7.   Effective Date.

    Except for Section 4(c), the requirements of this Act will 
only apply to the establishment of a preclearance operation in 
a foreign country where no preclearance operations have been 
established as of the date of enactment of this act.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    As reported, H.R. 3488 makes no changes to existing law.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]