To amend the Merchant Marine Act, 1936, to establish a program to ensure greater security for United States seaports, and for other purposes.

July 20, 2001

Mr. HOLLINGS (for himself and Mr. GRAHAM) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation

To amend the Merchant Marine Act, 1936, to establish a program to ensure greater security for United States seaports, and for other purposes.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the `Port and Maritime Security Act of 2001'.

SEC. 2. FINDINGS.

The Congress makes the following findings:

(1) There are 361 public seaports in the United States which have a broad range of characteristics, and all of which are an integral part of our Nation's commerce.

(2) United States seaports conduct over 95 percent of United States overseas trade. Over the next 20 years, the total volume of imported and exported goods at seaports is expected to more than double.

(3) The variety of trade and commerce that are carried out at seaports has greatly expanded. Bulk cargo, containerized cargo, passenger cargo and tourism, intermodal transportation systems, and complex domestic and international trade relationships have significantly changed the nature, conduct, and complexity of seaport commerce.

(4) The top 50 seaports in the United States account for about 90 percent of all the cargo tonnage. Twenty-five United States seaports account for 98 percent of all container shipments. Cruise ships visiting foreign destinations embark from 16 seaports.

(5) In the larger seaports, the activities can stretch along a coast for many miles, including public roads within their geographic boundaries. The facilities used to support arriving and departing cargo are sometimes miles from the coast.

(6) Seaports often are a major locus of Federal crime, including drug trafficking, cargo theft, and smuggling of contraband and aliens. The criminal conspiracies often associated with these crimes can pose threats to the people and critical infrastructures of seaport cities. Seaports that accept international cargo have a higher risk of international crimes like drug and alien smuggling and trade fraud.

(7) Seaports are often very open and exposed and, by the very nature of their role in promoting the free flow of commerce, are susceptible to large scale terrorism that could pose a threat to coastal, Great Lake, or riverain populations. Seaport terrorism could pose a significant threat to the ability of the United States to pursue its national security objectives.

(8) United States seaports are international boundaries, however, unlike United States airports and land borders, United States seaports receive no Federal funds for security infrastructure.

(9) Current inspection levels of containerized cargo are insufficient to counter potential security risks. Technology is currently not adequately deployed to allow for the non-intrusive inspection of containerized cargo. Additional promising technology is in the process of being developed that could inspect cargo in a non-intrusive and timely fashion.

(10) The burgeoning cruise ship industry poses a special risk from a security perspective. The large number of United States citizens sailing on international cruises provides an attractive target to terrorists seeking to cause mass casualties. Approximately 80 percent of cruise line passengers are United States citizens and 20 percent are aliens. Approximately 92 percent of crewmembers are aliens.

(11) Effective physical security and access control in seaports is fundamental to deterring and preventing potential threats to seaport operations, cargo shipments for smuggling or theft or other cargo crimes.

(12) Securing entry points, open storage areas, and warehouses throughout the seaport, controlling the movements of trucks transporting cargo through the seaport, and examining or inspecting containers, warehouses, and ships at berth or in the harbor are all important requirements that should be implemented.

(13) Identification procedures for arriving workers and deterring and preventing internal conspiracies are increasingly important.

(14) On April 27, 1999, the President established the Interagency Commission on Crime and Security in United States Seaports to undertake a comprehensive study of the nature and extent of the problem of crime in our seaports, as well as the ways in which governments at all levels are responding.

(15) The Commission has issued findings that indicate the following:

(A) Frequent crimes in seaports include drug smuggling, illegal car exports, fraud (including Intellectual Property Rights and other trade violations), and cargo theft.

(B) Data about crime in seaports have been very difficult to collect.

(C) Internal conspiracies are an issue at many seaports, and contribute to Federal crime.

(D) Intelligence and information sharing among law enforcement agencies needs to be improved and coordinated at many seaports.

(E) Many seaports do not have any idea about the threats they face from crime, terrorism, and other security-related activities because of a lack of credible threat information.

(F) A lack of minimum physical, procedural, and personnel security standards at seaports and at terminals, warehouses, trucking firms, and related facilities leaves many seaports and seaport users vulnerable to theft, pilferage, and unauthorized access by criminals.

(G) Access to seaports and operations within seaports is often uncontrolled.

(H) Coordination and cooperation between law enforcement agencies in the field is often fragmented.

(I) Meetings between law enforcement personnel, carriers, and seaport authorities regarding security are not being held routinely in the seaports. These meetings could increase coordination and cooperation at the local level.

(J) Security-related equipment such as small boats, cameras, and vessel tracking devices is lacking at many seaports.

(K) Detection equipment such as large-scale x-ray machines is lacking at many high-risk seaports.

(L) A lack of timely, accurate, and complete manifest (including in-bond) and trade (entry, importer, etc.) data negatively impacts law enforcement's ability to function effectively.

(M) Criminal organizations are exploiting weak security in seaports and related intermodal connections to commit a wide range of cargo crimes. Levels of containerized cargo volumes are forecasted to increase significantly, which will create more opportunities for crime while lowering the statistical risk of detection and interdiction.

(16) United States seaports are international boundaries that--

(A) are particularly vulnerable to threats of drug smuggling, illegal alien smuggling, cargo theft, illegal entry of cargo and contraband;

(B) may present weaknesses in the ability of the United States to realize its national security objectives; and

(C) may serve as a vector for terrorist attacks aimed at the population of the United States.

(17) It is in the best interests of the United States--

(A) to be mindful that United States seaports are international ports of entry and that the primary obligation for the security of international ports of entry lies with the Federal government;

(B) to be mindful of the need for the free flow of interstate and foreign commerce and the need to ensure the efficient movement of cargo in interstate and foreign commerce;

(C) to increase United States seaport security by establishing a better method of communication amongst law enforcement officials responsible for seaport boundary, security, and trade issues;

(D) to formulate guidance for the review of physical seaport security, recognizing the different character and nature of United States seaports;

(E) to provide financial incentives to help the States and private sector to increase physical security of United States seaports;

(F) to invest in long-term technology to facilitate the private sector development of technology that will assist in the non-intrusive timely detection of crime or potential crime;

(G) to harmonize data collection on seaport-related and other cargo theft, in order to address areas of potential threat to safety and security;

(H) to create shared inspection facilities to help facilitate the timely and efficient inspection of people and cargo in United States seaports; and

(I) to improve Customs reporting procedures to enhance the potential detection of crime in advance of arrival or departure of cargoes.

SEC. 3. PORT SECURITY TASK FORCE.

(a) ESTABLISHMENT- The Secretary shall establish a Port Security Task Force--

(1) to help implement the provisions of this Act;

(2) to help coordinate programs to enhance the security and safety of United States seaports;

(3) to help provide long-term solutions for seaport security issues;

(4) to help coordinate the security operations of local seaport security committees;

(5) to help ensure that the public and local seaport security committees are kept informed about seaport security enhancement developments;

(6) to help provide guidance for the conditions under which loan guarantees and grants are made; and

(7) to consult with the Coast Guard and the Maritime Administration in establishing port security program guidance.

(b) Membership-

(1) IN GENERAL- The Task Force shall include representatives of the Coast Guard and the Maritime Administration.

(2) OTHER AGENCIES- The Secretary shall consult with the Secretary of the Treasury to invite the participation of the United States Customs Service, and may invite the participation of other departments and agencies of the United States with an interest in port security, port security-related matters, and border protection issues.

(3) REQUIRED PRIVATE SECTOR REPRESENTATIVES- The Task Force shall include representatives, appointed by the Secretary of--

(A) port authorities;

(B) coastwise management units;

(C) longshore labor organizations;

(D) ocean shipping companies;

(E) trucking companies;

(F) railroad companies;

(G) transportation workers;

(H) ocean shippers;

(I) freight forwarding companies; and

(J) other representatives whose participation the Secretary deems beneficial.

(c) SUBCOMMITTEES- The Task Force may establish subcommittees to facilitate consideration of specific issues, including port security border protection and maritime domain awareness issues.

(d) LAW ENFORCEMENT SUBCOMMITTEE- The Task Force shall establish a subcommittee comprised of Federal, State, and local government law enforcement agencies to address port security issues, including resource commitments and law enforcement sensitive matters.

(e) EXEMPTION FROM FACA- The Federal Advisory Committee Act (5 U.S.C. App.) does not apply to the Task Force.

(f) ACCEPTANCE OF CONTRIBUTIONS; JOINT VENTURE ARRANGEMENTS- In carrying out its responsibilities under this Act, the Task Force, or a member organization or representative acting with the Task Force's consent, may accept contributions of funds, material, services, and the use of personnel and facilities from public and private entities by contract or other arrangement if the confidentiality of security-sensitive information is maintained and access to such information is limited appropriately.

(g) FUNDING- Of the amounts made available under section 17(b) there shall be made available to the Secretary of Transportation for activities of the Task Force $1,000,000 for each of fiscal years 2003 through 2006 without further appropriation.

SEC. 4. ESTABLISHMENT OF LOCAL PORT SECURITY COMMITTEES.

(a) IN GENERAL- The United States Coast Guard shall establish seaport security committees--

(1) to utilize the information made available under this Act;

(2) to define the physical boundaries within which to conduct vulnerability assessments in recognition of the unique characteristics of each port;

(3) to review port security vulnerability assessments promulgated under section 5;

(4) to implement the guidance promulgated under section 7;

(5) to help coordinate planning and other necessary security activities by conducting meetings no less frequently than 4 times each year, to disseminate information that will facilitate law enforcement activities; and

(6) to conduct an exercise at least once every 3 years to verify the effectiveness of each port authority and marine terminal security plan.

(b) MEMBERSHIP- In establishing those committees, the United States Coast Guard may utilize or augment any existing harbor safety committee or seaport readiness committee, but the membership of the seaport security committee shall include representatives of--

(1) the port authority;

(2) Federal, State and local government;

(3) Federal, State, and local government law enforcement agencies;

(4) labor organizations and transportation workers;

(5) local management organizations; and

(6) private sector representatives whose inclusion is deemed beneficial by the Captain-of-the-Port.

(c) CHAIRMAN- The local seaport security committee shall be chaired by the Captain-of-the-Port.

(d) EXEMPTION FROM FACA- The Federal Advisory Committee Act (5 U.S.C. App.) does not apply to a local seaport security committee.

(e) ACCEPTANCE OF CONTRIBUTIONS; JOINT VENTURE ARRANGEMENTS- In carrying out its responsibilities under this Act, a local seaport security committee, or a member organization or representative acting with the committee's consent, may accept contributions of funds, material, services, and the use of personnel and facilities from public and private entities by contract or other arrangement if the confidentiality of security-sensitive information is maintained and access to such information is limited appropriately.

(f) FUNDING- Of the amounts made available under section 17(b) there shall be made available to the Commandant $3,000,000 for each of fiscal years 2003 through 2006 without further appropriation to carry out this section, such sums to remain available until expended.

SEC. 5. COAST GUARD PORT SECURITY VULNERABILITY ASSESSMENTS.

(a) IN GENERAL- The Commandant of the Coast Guard, in consultation with the Defense Threat Reduction Agency, the Center for Civil Force Protection, and other appropriate public and private sector organizations, shall

develop standards and procedures for conducting seaport security vulnerability assessments.

(b) INITIAL SCHEDULE- The Coast Guard, in cooperation with local port authority committee officials with proper security clearances, shall complete no fewer than 10 seaport security vulnerability assessments annually, until it has completed such assessments for the 50 ports determined by the Commandant to be the most strategic or economically strategic ports in the United States. If a seaport security vulnerability assessment has been conducted within 5 years by or on behalf of a port authority or marine terminal authority, and the Commandant determines that it was conducted in a manner that is generally consistent with the standards and procedures developed under subsection (a), the Commandant may accept that assessment rather than conducting another seaport security vulnerability assessment for that port.

(c) REVIEW BY PORT AUTHORITY- The Commandant shall make the seaport security vulnerability assessment for a seaport available for review and comment by officials of the port authority with proper security clearances or marine terminal operator representatives with proper security clearances.

(d) Maps and Charts-

(1) COLLECTION AND DISTRIBUTION- The Commandant and the Administrator shall, working through local seaport security committees where appropriate--

(A) collect, store securely, and maintain maps and charts of all United States seaports that clearly indicate the location of infrastructure and overt-security equipment;

(B) make those maps and charts available upon request, on a secure and confidential basis, to--

(i) the Maritime Administration;

(ii) the United States Coast Guard;

(iii) the United States Customs Service;

(iv) the Department of Defense;

(v) the Federal Bureau of Investigation; and

(vi) the Immigration and Naturalization Service.

(2) OTHER AGENCIES- The Coast Guard and the Maritime Administration shall establish a process for providing relevant maps and charts collected under paragraph (1), and other relevant material, available, on a secure and confidential basis, to appropriate Federal, State, and local government agencies, and seaport authorities, for the purpose of obtaining the comments of those agencies before completing a seaport vulnerability assessment for each such seaport.

(3) SECURE STORAGE AND LIMITED ACCESS- The Coast Guard and the Maritime Administration shall establish procedures that ensure that maps, charts, and other material made available to Federal, State, and local government agencies, seaport authorities, and local seaport security committees are maintained in a secure and confidential manner and that access thereto is limited appropriately.

(e) ANNUAL STATUS REPORT TO CONGRESS- Notwithstanding section 7(c) of the Ports and Waterways Safety Act (33 U.S.C. 1226(c)), the Coast Guard and the Maritime Administration shall report annually to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure on the status of seaport security in a form that does not compromise, or present a threat to the disclosure of security-sensitive information about, the seaport security vulnerability assessments conducted under this Act. The report may include recommendations for further improvements in seaport security measures and for any additional enforcement measures necessary to ensure compliance with the seaport security plan requirements of this Act.

(f) FUNDING- Of the amounts made available under section 17(b) there shall be made available to the Commandant $10,000,000 for each of fiscal years 2003 through 2006 without further appropriation to carry out this section, such sums to remain available until expended.

SEC. 6. MARITIME TRANSPORTATION SECURITY PROGRAMS.

(a) IN GENERAL- The Commandant and the Administrator shall jointly initiate a rulemaking proceeding to prescribe regulations to protect the public from threats originating from vessels in maritime transportation originating or terminating in a United States seaport against an act of crime or terrorism. In prescribing a regulation under this subsection, the Commandant and the Administrator shall--

(1) consult with the Secretary of the Treasury, the Attorney General, the heads of other departments, agencies, and instrumentalities of the United States Government, State and local authorities, and the Task Force; and

(2) consider whether a proposed regulation is consistent with--

(A) protecting the public; and

(B) the public interest in promoting maritime transportation and commerce.

(b) SECURITY PROGRAMS-

(1) PROGRAM TO BE ESTABLISHED- Each port authority and marine terminal authority for an area designated under section 4(a)(2) at which a port security vulnerability assessment has been conducted under this Act shall establish a maritime transportation security program within 1 year after the assessment is completed.

(2) GENERAL REQUIREMENTS- A security program established under paragraph (1) shall provide a law enforcement program and capability at that seaport that is adequate to ensure the safety of the public from threats of crime and terrorism.

(3) SPECIFIC REQUIREMENTS- A security program established under paragraph (1) shall be linked to the Captain-of-the-Port authorities for maritime trade and shall include--

(A) provisions for establishing and maintaining physical security for seaport areas and approaches;

(B) provisions for establishing and maintaining procedural security for processing passengers, cargo, and crewmembers, and personnel security for the employment of individuals and service providers;

(C) a credentialing process to limit access to sensitive areas;

(D) a process to restrict vehicular access to seaport areas and facilities;

(E) restrictions on carrying firearms and other prohibited weapons; and

(F) a private security officer certification program, or provisions for using the services of qualified State, local, and private law enforcement personnel.

(c) INCORPORATION OF MARINE TERMINAL OPERATOR'S PROGRAM- Notwithstanding the requirements of subsection (b)(3), the Captain-of-the-Port may approve a security program of a port authority, or an amendment to an existing program, that incorporates a security program of a marine terminal operator tenant with access to a secured area of the seaport, if the program or amendment incorporates--

(1) the measures the tenant will use, within the tenant's leased areas or areas designated for the tenant's exclusive use under an agreement with the port authority, to carry out the security requirements imposed by the Commandant and the Administration on the port authority; and

(2) the methods the port authority will use to monitor and audit the tenant's compliance with the security requirements.

(d) INCORPORATION OF OTHER SECURITY PROGRAMS AND LAWS- Notwithstanding the requirements of subsection (b)(3), the Captain-of-the-Port may approve a security program of a port authority, or an existing program, that incorporates a State or local security program, policy, or law. In reviewing any such program, the Captain-of-the-Port shall--

(1) endeavor to avoid duplication and to recognize the State or local security program or policy; and

(2) ensure that no security program established under subsection (b)(3) conflicts with any applicable provision of State or local law.

(e) Review and Approval of Security Programs-

(1) IN GENERAL- The Captain-of-the-Port shall review and approve or disapprove each security program established under subsection (b). If the

Captain-of-the-Port disapproves a security program, then--

(A) the Captain-of-the-Port shall notify the port authority or marine terminal authority in writing of the reasons for the disapproval; and

(B) the port authority or marine terminal authority shall submit a revised security plan within 6 months after receiving the notification of disapproval.

(f) 5-Year Reviews- Whenever appropriate, but in no event less frequently than once every 5 years, each port authority or marine terminal operator required to develop a security program under this section shall review its program, make such revisions to the program as are necessary or appropriate, and submit the results of its review and the revised program to the Captain-of-the-Port.

(g) NO EROSION OF OTHER AUTHORITY- Nothing in this section precludes any agency, instrumentality, or department of the United States from exercising, or limits its authority to exercise, any other statutory or regulatory authority to initiate or enforce seaport security standards.

SEC. 7. SECURITY PROGRAM GUIDANCE.

(a) IN GENERAL- The Commandant and the Administrator, in consultation with the Task Force, shall develop voluntary security guidance that will serve as a benchmark for the review of security plans that--

(1) are linked to the Captain-of-the-Port authorities for maritime trade;

(2) include a set of recommended `best practices' guidelines for the use of maritime terminal operators; and

(3) take into account the different nature and characteristics of United States seaports and the need to promote commerce.

(b) REVISION- The Commandant and the Maritime Administrator shall review the guidelines developed under subsection (a) not less frequently than every 5 years and revise them as necessary.

(c) AREAS COVERED- The guidance developed under subsection (a) shall include the following areas:

(1) GENERAL SECURITY- The establishment of practices for physical security of seaport areas and approaches, procedural security for processing passengers, cargo, and crewmembers, and personnel security for employment of individuals and service providers.

(2) ACCESS TO SENSITIVE AREAS- The use of a credentials process, administered by public or private sector security services, to limit access to sensitive areas.

(3) VEHICULAR ACCESS- The use of restrictions on vehicular access to seaport areas and facilities, including requirements that seaport authorities and primary users of seaports implement procedures that achieve appropriate levels of control of vehicular access and accountability for enforcement of controlled access by vehicles.

(4) FIREARMS- Restrictions on carrying firearms.

(5) CERTIFICATION OF PRIVATE SECURITY OFFICERS- A private security officer certification program to improve the professionalism of seaport security officers.

SEC. 8. INTERNATIONAL SEAPORT SECURITY.

(a) COAST GUARD; INTERNATIONAL APPLICATION- The Commandant shall make every effort to have the guidance developed under section 7(a) adopted by appropriate international organizations as an international standard and shall, acting through appropriate officers of the United States Government, seek to encourage the development and adoption of seaport security standards under international agreements in other countries where adoption of the same or similar standards might be appropriate.

(b) MARITIME ADMINISTRATION; PORT ACCREDITATION PROGRAM- The Administrator shall make every effort to have the guidance developed under section 7(a) adopted by appropriate organizations as security standards and shall encourage the establishment of a program for the private sector accreditation of seaports that implement security standards that are consistent with the guidance.

(c) International Port Security Improvement Activities-

(1) IN GENERAL- The Administrator shall establish a program to assist foreign seaport operators in identifying port security risks, conducting port security vulnerability assessments, and implementing port security standards.

(2) IDENTIFICATION OF STRATEGIC FOREIGN PORTS- The Administrator shall work with the Secretary of Defense and the Attorney General to identify those foreign seaports where inadequate security or a high level of port security vulnerability poses a strategic threat to United States defense interests or may be implicated in criminal activity in the United States.

(3) DISSEMINATION OF INFORMATION ABROAD- The Administrator shall work with the Secretary of State to facilitate the dissemination of seaport security program information to port authorities and marine terminal operators in other countries.

(d) FUNDING- Of the amounts made available under section 17(b) there shall be made available to the Administrator $500,000 for each of fiscal years 2003 through 2006 without further appropriation to carry out this section, such sums to remain available until expended.

SEC. 9. MARITIME SECURITY PROFESSIONAL TRAINING.

(a) IN GENERAL- The Secretary shall establish a program, in consultation with the Federal Law Enforcement Center, the United States Merchant Marine Academy's Global Maritime and Transportation School, and the Maritime Security Council, and the International Association of Airport and Seaport Police, to develop standards and procedures for training and certification of maritime security professionals.

(b) ESTABLISHMENT OF SECURITY INSTITUTE- The Secretary shall establish the Maritime Security Institute at the United States Merchant Marine Academy's Global Maritime and Transportation School to train and certify maritime security professionals in accordance with internationally recognized law enforcement standards. Institute instructors shall be knowledgeable about Federal and international law enforcement, maritime security, and port and maritime operations.

(c) TRAINING AND CERTIFICATION- The following individuals shall be eligible for training at the Institute:

(1) Individuals who are employed, whether in the public or private sector, in maritime law enforcement or security activities.

(2) Individuals who are employed, whether in the public or private sector, in planning, executing, or managing security operations--

(A) at United States ports;

(B) on passenger or cargo vessels with United States citizens as passengers or crewmembers;

(C) in foreign ports used by United States-flagged vessels or by foreign-flagged vessels with United States citizens as passengers or crewmembers.

(d) PROGRAM ELEMENTS- The program established by the Secretary under subsection (a) shall include the following elements:

(1) The development of standards and procedures for certifying maritime security professionals.

(2) The training and certification of maritime security professionals in accordance with internationally accepted law enforcement and security guidelines, policies, and procedures.

(3) The training of students and instructors in all aspects of prevention, detection, investigation, and reporting of criminal activities in the international maritime environment.

(4) The provision of offsite training and certification courses and certified personnel at United States and foreign ports used by United States-flagged vessels, or by foreign-flagged vessels with United States citizens as passengers or crewmembers, to develop and enhance security awareness and practices.

(e) ANNUAL REPORT- The Institute shall transmit an annual report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure on the expenditure of appropriated funds and the training and other activities of the Institute.

(f) FUNDING- Of the amounts made available under section 17(b), there shall be made available to the Secretary, without further appropriation, to carry out this section--

(1) $2,500,000 for each of fiscal years 2003 and 2004, and

(2) $1,000,000 for each of fiscal years 2005 and 2006,

such amounts to remain available until expended.

SEC. 10. PORT SECURITY INFRASTRUCTURE IMPROVEMENT.

(a) IN GENERAL- Title XI of the Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et seq.) is amended by adding at the end thereof the following:

`SEC. 1113. LOAN GUARANTEES FOR PORT SECURITY INFRASTRUCTURE IMPROVEMENTS.

`(a) IN GENERAL- The Secretary, under section 1103(a) and subject to the terms the Secretary shall prescribe and after consultation with the United States Coast Guard, the United States Customs Service, and the Port Security Task Force established under section 3 of the Port and Maritime Security Act of 2001, may guarantee or make a commitment to guarantee the payment of the principal of, and the interest on, an obligation for seaport security infrastructure improvements for an eligible project at any United States seaport involved in international trade.

`(b) LIMITATIONS- Guarantees or commitments to guarantee under this section are subject to the extent applicable to all the laws, requirements, regulations, and procedures that apply to guarantees or commitments to guarantee made under this title.

`(c) TRANSFER OF FUNDS- The Secretary may accept the transfer of funds from any other department, agency, or instrumentality of the United States Government and may use those funds to cover the cost (as defined in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 61a)) of making guarantees or commitments to guarantee loans entered into under this section.

`(d) ELIGIBLE PROJECTS- A project is eligible for a loan guarantee or commitment under subsection (a) if it is for the construction or acquisition of--

`(1) equipment or facilities to be used for seaport security monitoring and recording;

`(2) security gates and fencing;

`(3) security-related lighting systems;

`(4) remote surveillance systems;

`(5) concealed video systems; or

`(6) other security infrastructure or equipment that contributes to the overall security of passengers, cargo, or crewmembers.

`SEC. 1114. GRANTS.

`(a) FINANCIAL ASSISTANCE- The Secretary may provide financial assistance for eligible projects (within the meaning of section 1113(d).

`(b) MATCHING REQUIREMENTS-

`(1) 75-percent federal funding- Except as provided in paragraph (2), Federal funds for any eligible project under this section shall not exceed 75 percent of the total cost of such project. In calculating that percentage, the non-Federal share of project costs may be provided by in-kind contributions and other noncash support.

`(2) EXCEPTIONS-

`(A) SMALL PROJECTS- There are no matching requirements for grants under subsection (a) for projects costing not more than $25,000.

`(B) HIGHER LEVEL OF SUPPORT REQUIRED- If the Secretary determines that a proposed project merits support and cannot be undertaken without a higher rate of Federal support, then the Secretary may approve grants under this section with a matching requirement other than that specified in paragraph (1).

`(c) ALLOCATION- The Secretary shall ensure that financial assistance provided under subsection (a) during a fiscal year is distributed so that funds are awarded for eligible projects that address emerging priorities or threats identified by the Task Force under section 5 of the Port and Maritime Security Act of 2001.

`(d) PROJECT PROPOSALS- Each proposal for a grant under this section shall include the following:

`(1) The name of the individual or entity responsible for conducting the project.

`(2) A succinct statement of the purposes of the project.

`(3) A description of the qualifications of the individuals who will conduct the project.

`(4) An estimate of the funds and time required to complete the project.

`(5) Evidence of support of the project by appropriate representatives of States or territories of the United States or other government jurisdictions in which the project will be conducted.

`(6) Information regarding the source and amount of matching funding available to the applicant, as appropriate.

`(7) Any other information the Secretary considers to be necessary for evaluating the eligibility of the project for funding under this title.'.

(b) ANNUAL ACCOUNTING- The Secretary of Transportation shall submit an annual summary of loan guarantees and commitments to make loan guarantees under section 1113 of the Merchant Marine Act, 1936, and grants made under section 1114 of that Act, to the Task Force. The Task Force shall make that information available to the public and to local seaport security committees through appropriate media of communication, including the Internet.

(c) FUNDING- Of amounts made available under section 17(b), there shall be made available to the Secretary of Transportation without further appropriation--

(1) $8,000,000 for each of the fiscal years 2003, 2004, 2005, and 2006 as guaranteed loan costs (as defined in section 502(5) of the Federal Credit Reform Act of 1990; 2 U.S.C. 661a(5)),

(2) $10,000,000 for each of such fiscal years for grants under section 1114 of the Merchant Marine Act, 1936, and

(3) $2,000,000 for each such fiscal year to cover administrative expenses related to loan guarantees and grants,

such amounts to remain available until expended.

(d) AUTHORIZATION OF APPROPRIATIONS- In addition to the amounts made available under subsection (c)(2), there are authorized to be appropriated to the Secretary of Transportation for grants under section 1114 of the Merchant Marine Act, 1936, $10,000,000 for each of the fiscal years 2003, 2004, 2005, and 2006.

SEC. 11. SCREENING AND DETECTION EQUIPMENT.

(a) FUNDING- Of amounts made available under section 17(b), there shall be made available to the Commissioner of Customs without further appropriation for the purchase of non-intrusive screening and detection equipment for use at United States seaports--

(1) $15,000,000 for fiscal year 2003,

(2) $16,000,000 for fiscal year 2004,

(3) $18,000,000 for fiscal year 2005, and

(4) $19,000,000 for fiscal year 2006,

such sums to remain available until expended.

(b) ACCOUNTING- The Commissioner shall submit a report for each such fiscal year to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure on the expenditure of funds appropriated pursuant to this section.

SEC. 12. ANNUAL REPORT ON MARITIME SECURITY AND TERRORISM.

Section 905 of the International Maritime and Port Security Act (46 U.S.C. App. 1802) is amended by adding at the end thereof the following: `Beginning with the first report submitted under this section after the date of enactment of the Port and Maritime Security Act of 2001, the Secretary shall include a description of activities undertaken under that Act and an analysis of the effect of those activities on seaport security against acts of terrorism.'.

SEC. 13. REVISION OF PORT SECURITY PLANNING GUIDE.

The Secretary of Transportation, acting through the Maritime Administration and after consultation with the Task Force and the United States Coast Guard, shall publish a revised version of the document entitled `Port Security: A National Planning Guide', incorporating the guidance promulgated under section 7, within 3 years after the date of enactment of this Act, and make that document available on the Internet.

SEC. 14. SECRETARY OF TRANSPORTATION TO COORDINATE PORT-RELATED CRIME DATA COLLECTION.

(a) IN GENERAL- The Secretary of Transportation shall--

(1) require, to the extent feasible, United States government agencies with significant regulatory or law enforcement responsibilities at United States seaports to modify their information databases to

ensure the collection and retrievability of data relating to crime at or affecting such seaports;

(2) evaluate the feasibility of capturing data on cargo theft offenses (including such offenses occurring outside such seaports) that would indicate the port of entry, the port where the shipment originated, where the theft occurred, and maintaining the confidentiality of shipper and carrier unless voluntarily disclosed, and, if feasible, implement its capture;

(3) if feasible, and in conjunction with the Task Force, establish an outreach program to work with State law enforcement officials to harmonize the reporting of data on cargo theft among the States and with the United States government's reports;

(4) if the harmonization of the reporting of such data among the States is not feasible, evaluate the feasibility of using private data bases on cargo theft and disseminating confidential cargo theft information to local port security committees for further dissemination to appropriate law enforcement officials; and

(5) in conjunction with the Task Force, establish an outreach program to work with local port security committees to disseminate cargo theft information to appropriate law enforcement officials.

(b) REPORT ON FEASIBILITY- The Secretary of Transportation shall report to the Senate Committee on Commerce, Science, and Transportation and the House of Representatives Committee on Transportation and Infrastructure within 1 year after the date of enactment of this Act on the feasibility of each activity authorized by subsection (a).

(c) Interstate or Foreign Shipments by Carrier-

(1) IN GENERAL- Section 659 of title 18, United States Code, is amended--

(A) by striking `with intent to convert to his own use' each place it appears;

(B) by inserting `trailer,' after `motortruck,' in the first undesignated paragraph;

(C) by inserting `air cargo container,' after `aircraft,' in the first undesignated paragraph;

(D) by inserting a comma and `or from any intermodal container, trailer, container freight station, warehouse, or freight consolidation facility,' after `air navigation facility' in the first undesignated paragraph;

(E) by striking `one year' and inserting `3 years' in the fifth undesignated paragraph;

(F) by adding at the end of the fifth undesignated paragraph the following: `Notwithstanding the preceding sentence, the court may, upon motion of the Attorney General, reduce any penalty imposed under this paragraph with respect to any defendant who provides information leading to the arrest and conviction of any dealer or wholesaler of stolen goods or chattels moving as or which are a part of or which constitute an interstate or foreign shipment.';

(G) by inserting after the first sentence in the penultimate undesignated paragraph the following: `For purposes of this section, goods and chattel shall be construed to be moving as an interstate or foreign shipment at all points between the point of origin and the final destination (as evidenced by the waybill or other shipping document of the shipment), regardless of any temporary stop while awaiting transshipment or otherwise.'; and

(H) by adding at the end the following:

`It shall be an affirmative defense (on which the defendant bears the burden of persuasion by a preponderance of the evidence) to an offense under this section that the defendant bought, received, or possessed the goods, chattels, money, or baggage at issue with the sole intent to report the matter to an appropriate law enforcement officer or to the owner of the goods, chattels, money, or baggage.'.

(2) FEDERAL SENTENCING GUIDELINES- Pursuant to section 994 of title 28, United States Code, the United States Sentencing Commission shall amend the Federal sentencing guidelines to provide a sentencing enhancement of not less than 2 levels for any offense under section 659 of title 18, United States Code, as amended by this section.

(3) REPORT TO CONGRESS- The Attorney General shall annually submit to Congress a report, which shall include an evaluation of law enforcement activities relating to the investigation and prosecution of offenses under section 659 of title 18, United States Code.

(d) FUNDING- Out of amounts made available under section 17(b), there shall be made available to the Secretary of Transportation, without further appropriation, $1,000,000 for each of fiscal years 2003, 2004, 2005, and

2006, to modify existing data bases to capture data on cargo theft offenses and to make grants to States to harmonize data on cargo theft, such sums to remain available until expended.

SEC. 15. SHARED DOCKSIDE INSPECTION FACILITIES.

(a) IN GENERAL- The Secretary of the Treasury, the Secretary of Agriculture, the Secretary of Transportation, and the Attorney General shall work with each other, the Task Force, and the States to establish shared dockside inspection facilities at United States seaports for Federal and State agencies.

(b) FUNDING- Of the amounts made available under section 17(b), there shall be made available to the Secretary of the Transportation, without further appropriation, $1,000,000 for each of fiscal years 2003, 2004, 2005, and 2006, such sums to remain available until expended, to establish shared dockside inspection facilities at United States seaports in consultation with the Secretary of the Treasury, the Secretary of Agriculture, and the Attorney General.

SEC. 16. IMPROVED CUSTOMS REPORTING PROCEDURES.

In an manner that is consistent with the promulgation of the manifesting and in-bond regulations and with the phased-in implementation of those regulations in the development of the Automated Commercial Environment Project, the United States Customs Service shall improve reporting of imports at United States seaports--

(1) by promulgating regulations to require, notwithstanding the second sentence of section 411(b) of the Tariff Act of 1930 (19 U.S.C. 1411(b)), all ocean manifests to be transmitted in electronic form to the Service in sufficient time for the information to be used effectively by the Service;

(2) by promulgating regulations to require, notwithstanding sections 552, 553, and 1641 of such Act (19 U.S.C. 1552, 1553, and 1641), all entries of goods, including in-bond entries, to provide the same information required for entries of goods released into the commerce of the United States to the Service before the goods are released for shipment from the seaport of first arrival; and

(3) by distributing the information described in paragraphs (1) and (2) on a real-time basis to any Federal, State, or local government agency that has a regulatory or law-enforcement interest in the goods.

SEC. 17. 4-YEAR REAUTHORIZATION OF TONNAGE DUTIES.

(a) In General-

(1) EXTENSION OF DUTIES- Section 36 of the Act of August 5, 1909 (36 Stat. 111; 46 U.S.C. App. 121) is amended by striking `through 2002,' each place it appears and inserting `through 2006,'.

(2) CONFORMING AMENDMENT- The Act entitled `An Act concerning tonnage duties on vessels entering otherwise than by sea', approved March 8, 1910 (36 Stat 234; 46 U.S.C. App. 132) is amended by striking `through 2002,' and inserting `through 2006,'.

(b) AVAILABILITY OF FUNDS- Amounts deposited in the general fund of the Treasury as receipts of tonnage charges collected as a result of the amendments made by subsection (a) shall be made available in each of fiscal years 2003 through 2006 to carry out this Act, as provided in sections 3(g), 4(f), 5(f), 8(d), 9(f), 10(c), 11(a), 14(d), and 15(b).

SEC. 18. DEFINITIONS.

In this Act:

(1) ADMINISTRATOR- The term `Administrator' means the Administrator of the Maritime Administration.

(2) CAPTAIN-OF-THE-PORT- The term `Captain-of-the-Port' means the United States Coast Guard's Captain-of-the-Port.

(3) COMMANDANT- The term `Commandant' means the Commandant of the United States Coast Guard.

(4) SECRETARY- Except as otherwise provided, the term `Secretary' means the Secretary of Transportation.

(5) TASK FORCE- The term `Task Force' means the Port Security Task Force established under section 3.

END