To strengthen port security by establishing an improved container security regime, to expand on the Maritime Transportation Security Act of 2002, to strengthen the Coast Guard port security mission, and for other purposes.

May 12, 2004

Ms. LORETTA SANCHEZ of California (for herself, Mr. TURNER of Texas, Mr. MARKEY, Mr. DICKS, Ms. HARMAN, Mr. DEFAZIO, Mrs. LOWEY, Mr. ANDREWS, Ms. MCCARTHY of Missouri, Ms. JACKSON-LEE of Texas, Mrs. CHRISTENSEN, Mr. LANGEVIN, Mr. MEEK of Florida, and Mr. CHANDLER) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

To strengthen port security by establishing an improved container security regime, to expand on the Maritime Transportation Security Act of 2002, to strengthen the Coast Guard port security mission, 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 `Secure Containers from Overseas and Seaports from Terrorism Act' or the `Secure COAST Act'.

TITLE I--BUREAU OF CUSTOMS AND BORDER PROTECTION SECURITY PROGRAMS

SEC. 101. AMENDMENTS TO THE HOMELAND SECURITY ACT OF 2002.

(a) In General- Title IV of the Homeland Security Act of 2002 (6 U.S.C. 201 et seq.) is amended by adding at the end the following new subtitle:

`Subtitle G--Bureau of Customs and Border Protection Security Programs

`SEC. 481. STANDARDS AND VERIFICATION PROCEDURES FOR THE SECURITY OF MARITIME CARGO CONTAINERS.

`(a) Standards and Verification Procedures- Not later than 180 days after the date of the enactment of the Secure COAST Act, the Secretary, acting through the Under Secretary for Border and Transportation Security, shall establish standards and verification procedures for the security of maritime cargo containers moving within the intermodal transportation system, including standards for sealing and procedures for seal verifications for cargo containers at loading.

`(b) Requirements- The standards and verification procedures established pursuant to subsection (a) shall be consistent with the cargo container security recommendations of Operation Safe Commerce, the interagency Container Working Group, and the Smart and Secure Trade Lane program and shall meet the following additional requirements:

`(1) Seal standards- Maritime cargo containers shall at a minimum be affixed with a security seal equivalent to the level `D' high security seal (as certified by the International Organization for Standardization (ISO); Certification No. 17712) at loading.

`(2) Seal verification- Procedures shall be established for the verification of security seals described in paragraph (1), including procedures to determine which individuals and entities in the intermodal transportation system are responsible for sealing maritime cargo containers, recording of seal numbers, changes to such numbers if a container is opened, and anomalies relating to security seals.

`(c) Evaluation of Container Tracking Technologies, Container Targeting, and Security of Empty Containers-

`(1) Evaluation- The Secretary, acting through the Under Secretary for Border and Transportation Security, shall carry out the following:

`(A) Container tracking technologies- The Secretary shall evaluate the security benefits of existing technology for container tracking from the point of loading to its final destination, such as electronic seals or intrusion detection devices that can detect a physical breach of a container. In addition to determining the security benefits, the Secretary shall determine the costs, infrastructure, communication system, required to deploy such technology in the intermodal transportation system, including incentives for investment in such technology.

`(B) Container targeting- The Secretary shall evaluate trade information, in addition to cargo manifest information, such as purchase orders, port of origin data, and transshipment data, which would improve the ability of the Bureau of Customs and Border Protection to carry out risk analysis of containers.

`(C) Security of empty containers- The Secretary shall evaluate the practices and policies in place to secure shipment of empty containers at United States ports and shall develop recommendations with respect to whether additional regulations or legislation is necessary to ensure the safe and secure delivery of cargo and to prevent potential acts of terrorism involving such containers.

`(2) Report- Not later than 180 days after the date of the enactment of the Secure COAST Act, the Secretary shall prepare and submit to the appropriate congressional committees a report that contains the results of the evaluations carried out under paragraph (1), including any recommendations thereto.

`SEC. 482. VALIDATION OF SECURITY MEASURES UNDER THE C-TPAT PROGRAM.

`(a) General Validation- Not later than September 30, 2005, and on an annual basis thereafter, the Commissioner of the Bureau of Customs and Border Protection shall conduct on site validations of each individual and entity participating in the C-TPAT program to ensure that the individual or entity is implementing appropriate security measures under the program. The Commissioner may certify private security companies to carry out the validation process described in the preceding sentence.

`(b) Specific Validation- The Commissioner shall establish inspection teams under the C-TPAT program to evaluate the program's security requirements and, as circumstances warrant, to carry out unannounced inspections of individuals and entities participating in the program to ensure compliance with the security requirements.

`(c) Penalties for Non-Compliance- The Commissioner shall establish penalties for non-compliance with the requirements of the C-TPAT program by individuals and entities participating in the program, including probation or expulsion from the program, as appropriate.

`SEC. 483. DEPLOYMENT OF RADIATION DETECTION PORTAL EQUIPMENT; INTEGRATED CARGO INSPECTION SYSTEM.

`(a) Deployment of Radiation Detection Portal Equipment-

`(1) Deployment- Not later than September 30, 2005, the Commissioner of the Bureau of Customs and Border Protection shall deploy radiation detection portal equipment at all United States seaports, other United States ports of entry, and major facilities as determined by the Secretary.

`(2) Report- Not later than December 31, 2004, the Commissioner shall submit to the appropriate congressional committees a report on the implementation of the requirement under paragraph (1).

`(3) Authorization of appropriations- There is authorized to be appropriated to the Commissioner $297,000,000 for fiscal year 2005 to carry out this subsection.

`(b) Integrated Cargo Inspection System-

`(1) Plan- The Commissioner of the Bureau of Customs and Border Protection shall develop a plan to integrate radiation detection portal equipment with gamma-ray inspection technology equipment at United States seaports and foreign seaports that are participating the Container Security Initiative in order to facilitate the detection of nuclear weapons in maritime cargo containers. Such plan shall include methods for automatic identification of containers and vehicles for inspection in a timely manner and a data sharing network capable of transmitting gamma-ray images and cargo data among relevant ports and the National Targeting Center of the Bureau of Customs and Border Protection.

`(2) Report- Not later than 180 days after the date of the enactment of the Secure COAST Act, the Commissioner shall prepare and submit to the appropriate congressional committees a report that contains--

`(A) a description of the plan developed under paragraph (1), including any infrastructure improvements required at the seaports involved;

`(B) an estimate of the costs associated with implementation of the plan; and

`(C) an estimate of the timeframe for implementation of the plan.

`SEC. 484. STAFFING ASSESSMENT OF SEAPORT SECURITY MISSIONS.

`(a) Study- The Commissioner of the Bureau of Customs and Border Protection shall conduct a study to determine the number of Bureau inspectors and other appropriate personnel that should be stationed at United States seaports and foreign seaports that are participating in the Container Security Initiative (CSI) to support increased inspections of low risk cargo, deployment of personnel at foreign seaports for a period of at least one year, and the manning of radiation portal monitors installed at such seaports. In determining such number of Bureau inspectors, the Commissioner shall take into account the requirements contained in the other sections of this subtitle.

`(b) Report- Not later than 180 days after the date of the enactment of the Secure COAST Act, the Commissioner shall prepare and submit to the appropriate congressional committees a report that contains the results of the study conducted under subsection (a).

`SEC. 485. CSI REPORT.

`Not later than 180 days after the date of the enactment of the Secure COAST Act, and on an annual basis thereafter, the Secretary, acting through the Commissioner of the Bureau of Customs and Border Protection, shall prepare and submit to the appropriate congressional committees a report that contains all cargo inspection data at foreign seaports participating in the Container Security Initiative (CSI) for the prior year. The initial report shall include the plan for the `strategic port' phase of the CSI.

`SEC. 486. DEFINITIONS.

`In this subtitle:

`(1) Appropriate congressional committees- The term `appropriate congressional committees' means--

`(A) the Committee on Appropriations, the Committee on Ways and Means, the Select Committee on Homeland Security (or any successor committee), and the Committee on Transportation and Infrastructure of the House of Representatives; and

`(B) the Committee on Appropriations, the Committee on Finance, the Committee on Commerce, Science, and Transportation, and the Committee on Governmental Affairs of the Senate.

`(2) Bureau of customs and border protection or bureau- The term `Bureau of Customs and Border Protection' or `Bureau' means the Bureau of Customs and Border Protection of the Department.

`(3) Commissioner- The term `Commissioner' means the Commissioner of the Bureau of Customs and Border Protection.

`(4) Container security initiative or csi- The term `Container Security Initiative' or `CSI' means the program carried out by the Bureau of Customs and Border Protection under which Bureau personnel are deployed to major seaports outside the United States to work with their host country counterparts to--

`(A) establish security criteria to identify high-risk maritime cargo containers bound for the United States based on advance information;

`(B) identify and pre-screen such maritime cargo containers for chemical, biological, or nuclear weapons through examination or inspection; and

`(C) develop secure or `smart' maritime cargo containers.

`(5) C-TPAT program- The term `C-TPAT program' means the Customs-Trade Partnership Against Terrorism program carried out by the Bureau of Customs and Border Protection under which importers, brokers, air, sea, and land carriers, and other individuals and entities in the intermodal transportation system voluntarily enter into partnerships with the Bureau to establish and carry out a validation process to ensure that participants are implementing appropriate security measures to protect the system from being compromised by individual terrorists and terrorist organizations.

`(6) Interagency container working group- The term `Interagency Container Working Group' means the working group consisting of representatives of the former United States Customs Service and the National Infrastructure Security Committee of the Department of Transportation that provided recommendations relating to the security of intermodal cargo containers to the Office of Homeland Security in the Executive Office of the President.

`(7) Operation safe commerce- The term `Operation Safe Commerce' means the program carried out by the Department of Transportation and the Bureau of Customs and Border Protection to fund business initiatives designed to enhance security for maritime cargo containers moving within the intermodal transportation system.

`(8) Smart and secure trade lane program- The term `Smart and Secure Trade Lane Program' means the program carried out by the intermodal transportation industry to provide security and ensure efficiency throughout the intermodal transportation system, specifically by developing technology to improve the security of intermodal cargo containers and to improve information sharing within the industry relating to such security and efficiency.'

(b) Clerical Amendment- The table of contents in section 1(b) of the Homeland Security Act of 2002 is amended by adding after the items relating to subtitle F of title IV the following new items:

`Subtitle G--Bureau of Customs and Border Protection Security Programs

`Sec. 481. Standards for the security of maritime cargo containers.

`Sec. 482. Validation of security measures under the C-TPAT program.

`Sec. 483. Deployment of radiation detection portal equipment; integrated cargo inspection system.

`Sec. 484. Staffing assessment of seaport security missions.

`Sec. 485. CSI report.

`Sec. 486. Definitions.'.

SEC. 102. REMOVAL AND STORAGE OF UNCLAIMED MERCHANDISE.

(a) In General- Chapter 701 of title 46, United States Code, is amended--

(1) by redesignating section 70117 as section 70118; and

(2) by inserting after section 70116 the following new section:

`Sec. 70117. Removal and storage of unclaimed merchandise

`(a) In General- Notwithstanding any other provision of law, the Secretary shall require any uncleared, imported merchandise remaining on the pier or wharf onto which it was unladen for more than 7 calendar days to be removed from the pier or wharf and deposited in the public stores or a general order warehouse, where it shall be inspected for determination of contents, and thereafter a permit for its delivery may be granted.

`(b) Penalty- The Secretary may impose an administrative penalty of $5,000 for each bill of lading for general order merchandise remaining on a wharf or pier in violation of subsection (a).'.

(b) Clerical Amendment- The chapter analysis for chapter 701 of title 46, United States Code, is amended by striking the last item and inserting the following:

`70117. Removal and storage of unclaimed merchandise.

`70118. Civil penalty.'.

TITLE II--PORT SECURITY

SEC. 201. ADMINISTRATION OF PORT SECURITY GRANTS BY SECRETARY OF HOMELAND SECURITY.

(a) Grant Authority- Section 70107(a) of title 46, United States Code, is amended to read as follows:

`(a) Grant Authority- The Under Secretary for Border and Transportation Security of the Department of Homeland Security shall establish a grant program for making a fair and equitable allocation of funds to implement Area Maritime Transportation Security Plans and to help fund compliance with Federal security plan among port authorities, facility operators, and State and local agencies required to provide security services. Grants shall be made on the basis of the need to address vulnerabilities in security subject to review and comment by the appropriate Federal Maritime Security Coordinators and the Maritime Administration. The grant program shall take into account national economic and strategic defense concerns and shall be coordinated with the Director of the Office of Domestic Preparedness to ensure that the grant process is consistent with other Department of Homeland Security grant programs.'.

(b) Letter of Intent-

(1) Authority to issue- The Secretary of Homeland Security may issue a letter of intent to a seaport committing to obligate from future budget authority available for grants under section 70107 of title 46, United States Code,, an amount equal to not more than the Federal share of the costs of a security improvement project (including project design and interest costs) having a total cost of $10,000,000 or more.

(2) Notice to congress- The Secretary shall transmit to the Committees on Appropriations and Homeland Security of the House of Representatives and the Committees on Appropriations and Commerce, Science, and Transportation of the Senate a written notification at least 3 days before the issuance of a letter of intent under this subsection.

(3) limitations- A letter of intent issued under this subsection is not an obligation of the Government for purposes of section 1501 of title 31, United States Code, and shall not be considered to be an administrative commitment for financing. An obligation or administrative commitment pursuant to a letter of intent issued under this subsection may be made only as amounts are provided in appropriations Acts to carry out the project that is the subject of the letter.

(4) Statutory construction- Nothing in this subsection shall be construed to prohibit the obligation of amounts pursuant to a letter of intent under this subsection in the same fiscal year as the letter of intent is issued.

(5) Application of additional requirements- The Secretary may require as a condition for issuance of a letter of intent under this subsection such reasonable administrative requirements as may be necessary to carry out this Act.

SEC. 202. PORT SECURITY GRANT FUNDING.

Section 70107(h) of title 46, United States Code, is amended to read as follows:

`(h) Authorization of Appropriations- There is authorized to be appropriated to the Secretary to carry out subsections (a) through (g)--

`(1) $537,000,000 for fiscal year 2005; and

`(2) such sums as are necessary for each subsequent fiscal year.'.

SEC. 203. DEVELOPMENT OF LONG-RANGE VESSEL TRACKING SYSTEM.

Section 70115 of title 46, United States Code, is amended--

(1) by inserting `(a) In General- ' before the first sentence;

(2) by striking `may' and inserting `shall'; and

(3) by adding at the end the following:

`(b) Plan- (1) The Secretary shall, by no later than December 31, 2004, issue a plan to develop and implement the vessel tracking system required by subsection (a).

`(2) The plan--

`(A) shall be designed to ensure that the vessel tracking system is capable of providing information regarding the position of each vessel traveling to the United States from an overseas port, throughout the voyage of the vessel;

`(B) shall designate--

`(i) the Federal agencies that are responsible for the operation of the system; and

`(ii) the Federal, State, and local agencies and persons in the private sector that will have access to the information provided by the system;

`(C) shall include timelines, costs, and other resources required to operate such a system; and

`(D) shall require that, during the 96-hour period preceding the entry of a vessel into a port in the United States, information regarding the location of the vessel--

`(i) shall be submitted to the Secretary; and

`(ii) shall be available to Federal, State, and local agencies and persons in the private sector that are otherwise authorized to have access to the information.

`(3) The Secretary shall submit the plan to the Committee of Appropriations, the Committee on Transportation and Infrastructure, and the Select Committee on Homeland Security of the House of Representatives and the Committee on Appropriations, the Committee on Commerce, Science, and Transportation, and the Committee on Governmental Affairs of the Senate, by not later than the 180 days after the date of the enactment of this subsection.'.

SEC. 204. MARITIME INFORMATION REPORT.

Not later than 90 days after the date of the enactment of this Act, the Secretary of Homeland Security shall submit to the appropriate congressional committees a plan for the implementation of section 70113 of title 46, United States Code. The plan shall--

(1) identify all Federal agencies with maritime information relating to vessels, crew, passengers, cargo, and cargo shippers;

(2) establish a timeline for coordinating the efforts of those Federal agencies in the collection of maritime information;

(3) establish a timeline for the incorporation into implementation of such section of information on vessel movements derived through the implementation of sections 70114 and 70115 of title 46, United States Code; and

(4) include recommendations on co-locating agency personnel in order to maximize expertise, minimize cost, and avoid redundancy.

SEC. 205. NATIONAL MARITIME TRANSPORTATION SECURITY PLAN.

No later than 180 days after the date of the enactment of this Act, the Secretary of Homeland Security shall submit to the appropriate congressional committees the National Maritime Transportation Security Plan required under section 70103 of title 46, United States Code.

SEC. 206. FUNDING FOR COLLABORATIVE PROGRAM FOR DEVELOPMENT OF MARITIME INFORMATION SHARING AND ANALYSIS CAPABILITY.

(a) Fiscal Year 2005- Of the amounts authorized to be appropriated to the Department of Homeland Security, $3,000,000 shall be available for a grant to assist the maritime industry to develop and operare a colloaborative maritime information sharing and analysis capability.

(b) Sense of Congress- It is the sense of Congress that--

(1) the President should include in budget requests submitted for fiscal years 2006 and 2007 sufficient funds to ensure that such a maritime information sharing and analysis capability is fully operational before fiscal year 2008; and

(2) the maritime industry should pay at least half of the operating costs of such capability incurred in fiscal year 2008 and thereafter.

SEC. 207. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

In this title the term `appropriate congressional committees' means the Committee on Transportation and Infrastructure, the Select Committee on Homeland Security, and the Committee on Appropriations of the House of Representatives and the Committee on Commerce, Science and Transportation and the Committee on Appropriations of the Senate.

TITLE III--STRENGTHENING THE COAST GUARD

SEC. 301. ACCELERATION OF INTEGRATED DEEPWATER PROGRAM.

In addition to any other amounts authorized, there is authorized to be appropriated to the Secretary of Homeland Security $1,892,000,000 for the acquisition and construction of vessels, aircraft, shore and offshore facilities and other components associated with the Integrated Deepwater System in accordance with the report required by section 888 of the Homeland Security Act of 2002 (116 Stat. 2250).

SEC. 302. AIS INFRASTRUCTURE.

In addition to any other amounts authorized, there is authorized to be appropriated to the Secretary of Homeland Security $4,000,000 for the acquisition and construction of shore-based equipment and infrastructure associated with the Automated Identification System authorized by section 70114 of title 46, United States Code, for ports that do not have Coast Guard Vessel Traffic Services.

SEC. 303. INCREASE IN AUTHORIZED COAST GUARD PERSONNEL.

The Coast Guard is authorized an end-of-year strength for active duty personnel of 50,000 as of September 30 of each of 2004, 2005, and 2006.

SEC. 304. SENSE OF THE CONGRESS REGARDING NAMING NEW VESSELS UNDER THE DEEPWATER PROGRAM FOR CITIES OF THE UNITED STATES.

It is the sense of the Congress that the Coast Guard should consider including in its naming protocols for new vessels constructed under the Deepwater Program the names of cities of the United States, in recognition of their support and friendly relationship to the Coast Guard and the challenge to cities in the United States from terrorism.

END