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                                                       Calendar No. 161
107th Congress                                                   Report
                                 SENATE
 1st Session                                                     107-64
_______________________________________________________________________



                PORT AND MARITIME SECURITY ACT OF 2001

                               __________

                              R E P O R T

                                 of the

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 1214



                                     

               September 14, 2001.--Ordered to be printed
                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
89-010                     WASHINGTON : 2001
______________________________________________________________________
             For sale by the Superintendent of Documents, 
                   U.S. Government Printing Office
 Internet: bookstore.gpo.gov Phone: (202)512-1800 Fax: (202)512-2250 
             Mail: Stop SSOP, Washington, DC 20402-0001

       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                      one hundred seventh congress

                             first session

              ERNEST F. HOLLINGS, South Carolina, Chairman

DANIEL K. INOUYE, Hawaii             JOHN MCCAIN, Arizona
JOHN D. ROCKEFELLER IV, West         TED STEVENS, Alaska
Virginia                             CONRAD BURNS, Montana
JOHN F. KERRY, Massachusetts         TRENT LOTT, Mississippi
JOHN B. BREAUX, Louisiana            KAY BAILEY HUTCHISON, Texas
BYRON L. DORGAN, North Dakota        OLYMPIA SNOWE, Maine
RON WYDEN, Oregon                    SAM BROWNBACK, Kansas
MAX CLELAND, Georgia                 GORDON SMITH, Oregon
BARBARA BOXER, California            PETER G. FITZGERALD, Illinois
JOHN EDWARDS, North Carolina         JOHN ENSIGN, Nevada
JEAN CARNAHAN, Missouri              GEORGE ALLEN, Virginia
BILL NELSON, Florida

                     Kevin D. Kayes, Staff Director

                       Moses Boyd, Chief Counsel

                      Gregg Elias, General Counsel

                  Mark Buse, Republican Staff Director

               Jeanne Bumpus, Republican General Counsel



                                                       Calendar No. 161
107th Congress                                                   Report
                                 SENATE
 1st Session                                                     107-64

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



 
                 PORT AND MARITIME SECURITY ACT OF 2001

                                _______
                                

               September 14, 2001.--Ordered to be printed

                                _______
                                

      Mr. Hollings, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 1214]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1214) to amend the Merchant 
Marine Act, 1936, to establish a program to ensure greater 
security for United States seaports, and for other purposes, 
having considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                          Purpose of the Bill

  The bill establishes a coordinated policy to protect our 
nation's seaports from threats of crime and terrorism that 
could effect our nation and our maritime commerce. 
Specifically, the bill would require the creation of national 
and local seaport security committees to evaluate, plan and 
implement security measures, and to coordinate Federal, State, 
and local law enforcement with respect to criminal and 
terrorist threats at our 50 most economic and strategic 
seaports. The bill would require the Coast Guard to conduct 
vulnerability assessments of the 50 identified seaports, and 
would require local seaport security committees to submit a 
security program within one year of the completion of a 
vulnerability assessment for Coast Guard approval.
  The bill would direct the government to work with the 
international and private sector in adopting security standards 
for seaports, and provide assistance to certain foreign 
seaports to help upgrade their systems for security. The bill 
would also require the establishment of a training program for 
maritime security personnel, and attempt to harmonize the 
collection of data on seaport related crimes in order to 
facilitate a coordinated law enforcement effort. The bill would 
further provide grants and loans to United States seaports to 
upgrade security equipment and infrastructure, and provide 
funds to the United States Customs Service to purchase non-
intrusive detection equipment. In order to defray the costs of 
the bill, the legislation authorizes an extension of tonnage 
duties, and uses the proceeds to pay for the bill's provisions. 
As reported, the bill would authorize appropriations for grants 
for security infrastructure improvements in the amounts of 
$40,000,000.

                          Background and Needs

                         United States Seaports

               United States marine transportation system

  In September 1999, Department of Transportation Secretary 
Rodney Slater issued a preliminary report of the Marine 
Transportation System (MTS) Task Force--An Assessment of the 
U.S. Marine Transportation System. The report reflected a 
highly collaborative effort among public sector agencies, 
private sector organizations, and other stakeholders in the 
MTS.
  The report affirmed that the United States has more than 
1,000 harbor channels and 25,000 miles of inland, intracoastal, 
and coastal waterways in the United States which serve over 300 
ports, comprised of more than 3,700 terminals that handle 
passenger and cargo movements. These waterways and ports link 
to 152,000 miles of railways, 460,000 miles of underground 
pipelines and 45,000 miles of interstate highways. Further, the 
report noted that, annually, the U.S. marine transportation 
system moves more than 2 billion tons of domestic and 
international freight, imports 3.3 billion tons of domestic 
oil, transports 134 million passengers by ferry, serves 78 
million Americans engaged in recreational boating, and hosts 
more than 5 million cruise ship passengers.
  The MTS provides economic value, as waterborne cargo 
contributes more than $742 billion to U.S. gross domestic 
product and creates employment for more than 13 million 
citizens. While these figures reveal the magnitude of our 
waterborne commerce, they do not reveal the growth of 
waterborne commerce, or the potential problems in coping with 
this growth. It is estimated that the total volume of domestic 
and international trade is expected to double over the next 
twenty years. The MTS Report recognized that the doubling of 
trade also brings up the troubling issue of how the U.S. is 
going to protect our maritime borders from crime, threats of 
terrorism, or our ability to mobilize U.S. armed forces.

                     Regulation of port authorities

  Port Authorities in the United States are instrumentalities 
of State or local governments, established by State or local 
enactment. The Federal role in U.S. ports traditionally has 
been to help fund the construction and maintenance of navigable 
channels, albeit since 1986, this function has been partially 
funded by the shipping industry through fees collected under 
the Harbor Maintenance Tax. Seaport authorities vary in size 
and composition. They can constitute areas that span miles of 
waterfront or be relatively compact in size. Additionally, 
seaports can exert control over business practices as an owner/
operator, or can function solely as a landlord. Some marine 
terminals are owned and operated under private sector control.
  The United States has no national port authority. 
Jurisdiction is shared by Federal, State, and local 
governments. The Constitution does not grant regulation over 
seaports to the Federal government, so under the provisions of 
the 10th amendment, regulatory authority remains with the 
States. However, the Constitution does vest the authority to 
regulate navigable waterways to the Federal government, a task 
largely delegated to the United States Army Corps of Engineers 
and the United States Coast Guard. The Federal government also 
is delegated the right to regulate interstate and foreign 
commerce, and pursuant to this authority, has plenary powers to 
regulate port practices. The Federal government traditionally, 
however, has not exercised its authority to regulate or police 
the operations of U.S. seaports.
  The major Federal authorities at U.S. seaports are the 
Customs Service and Coast Guard. Customs ensures that all goods 
and persons entering into the United States do so in accordance 
with our nation's laws and regulations. Customs also has the 
authority to enforce all of U.S. export laws, embargoes, and 
economic trade sanctions. In effectuating this mandate, Customs 
has the authority to conduct warrantless search and seizures at 
U.S. borders (land, air, and sea). The Coast Guard was first 
delegated authority to protect our seaports from acts of 
aggression during wartime under the Espionage Act of 1917. 
Gradually, this authority has expanded to include the exercise 
of non-defense safety and security from intentional destruction 
or loss or injury due to subversive or terrorist activity. The 
Coast Guard under the auspices of the ``Captain of the Port'' 
has wide ranging authority to enforce security requirements 
pertaining to its missions of marine safety, environmental 
protection, maritime law enforcement, and national security. 
Practically speaking, the Customs Service, because of fiscal 
constraints, has focused its oversight on policing cargo entry, 
while the Coast Guard, also constrained by budgetary 
limitation, has tended to focus more resources on water-side 
activities. The result of the current practices is that the 
physical or operational security functions of port operations 
are largely left to the State or private entities that operate 
and control the ports.

            Seaport Crime and Security Commission's Findings

  On April 29, 1999, at the urging of Senator Graham, President 
Clinton signed an Executive Memorandum establishing the 
Interagency Commission on Crime and Security in U.S. Seaports. 
The Memorandum directed the Commission to report on four main 
areas: (1) an analysis of the nature and extent of serious 
crime; (2) an overview of the specific missions and authorities 
relevant to Federal, State and local government agencies as 
well as the private sector; (3) an assessment of the nature and 
effectiveness of ongoing coordination among the Federal 
agencies and; (4) recommendations for improving the response of 
Federal, State, and local governments in response to seaport 
crime.
  The Secretary of Treasury (acting through the Customs 
Commissioner), the Secretary of Transportation (acting through 
the Maritime Administrator), and the Department of Justice 
(acting through the Assistant Attorney General for the Criminal 
Division) served as the Commission's three co-chairs. Seventeen 
Federal agencies with an interest in seaport security were 
represented on the Commission staff. In order to examine the 
state of security in U.S. ports, the Commission conducted on-
site surveys of the following 12 U.S. seaports: Charleston, SC; 
New Orleans, LA; Detroit, MI; New York/New Jersey; Gulfport, 
MS; Philadelphia, PA; Long Beach, CA; Port Everglades, FL; Los 
Angeles, CA; San Juan, PR; Miami, FL; Tacoma, WA. The 
Commission also conducted field hearings in Baltimore, MD, and 
Jacksonville, FL. Further, they interviewed shipping industry 
participants, and conducted on-site review of major foreign 
ports--Felixstowe, United Kingdom, and Rotterdam, the 
Netherlands.
  In August, 2000, The Interagency Commission on Crime and 
Security concluded that it was not able to determine the full 
extent of serious crime at U.S. seaports--primarily because 
there is no consolidated data base which coordinates Federal, 
State, or local information that categorizes crime at 
seaports--it did conclude that crime is significant, and in all 
likelihood is more extensive than what is currently 
retrievable. Criminal activity at U.S. seaports includes; 
importation of drugs, contraband, and illegal merchandise; 
stowaways and alien smuggling; trade fraud and commercial 
smuggling; environmental crimes; cargo theft; and the unlawful 
exportation of controlled commodities, munitions, stolen 
property, and drug proceeds. Many of these violations are 
violations of Federal law.
  The Commission also evaluated the threats posed by terrorism 
to U.S. seaports. The Commission believes that a terrorist 
attack has the potential to cause significant damage, mainly 
because of the openness of the port, the potential harm and 
damage that could be caused by many of the cargos, and the 
usual proximity of large populations living on the waterways.
  The Commission found:
          The state of security in U.S. seaports generally 
        ranged from poor to fair, and in a few cases, good.
          There are no widely accepted standards or guidelines 
        for physical, procedural, and personnel security for 
        seaports, although some ports are making outstanding 
        efforts to improve security. Control of access to the 
        seaport or sensitive areas within the seaport is often 
        lacking. Practices to restrict or control access of 
        vehicles to vessels, cargo receipt and delivery 
        operations, and passenger processing operations at 
        seaports are either not present or not consistently 
        enforced, increasing the risk that violators could 
        quickly remove cargo or contraband. Many ports do not 
        have identification cards issued to personnel to 
        restrict access to vessels, cargo receipt and delivery 
        operations, and passenger processing operations.
          At many seaports, the carrying of firearms is not 
        restricted, and thus internal conspirators and other 
        criminals are allowed armed access to cargo vessels and 
        cruise line terminals. In addition many seaports rely 
        on private security personnel who lack the crime 
        prevention and law enforcement capability of regular 
        police officers.
          Frequently, Federal, State, and local law enforcement 
        agencies do cooperate with each other in regard to 
        security matters, including the sharing of 
        intelligence. However, there were locations surveyed 
        where private sector representatives said they were 
        unclear which Federal agency required reports of 
        possible cargo thefts and other violations. No regular 
        security-related local meetings are being held between 
        local law enforcement organizations (Federal, State, 
        and local), the trade, and port authorities, with the 
        exception of those relatively few Strategic Seaports 
        where Port Readiness Committees are active.

                                 Crime

  The Commission found drug smuggling to be the most prevalent 
and reported crime problem. The Commission compared the volumes 
of narcotics seized in commercial shipments at the 12 U.S. 
seaports they visited with seizures at air and land borders 
from 1996-98 and found that narcotics seized in commercial 
shipments at the 12 seaports constituted 69 percent of the 
total weight of cocaine, 55 percent of the marijuana, and 12 
percent of the heroin. The Commission also identified concerns 
that drug smugglers increasingly knew the methods and processes 
involved in the maritime shipping trade, and were utilizing the 
system to effectuate criminal behavior.
  The Commission also identified smuggling of illegal aliens as 
a problem, and identified the presence of organized crime rings 
smuggling aliens into the United States. At the 12 seaports 
visited by the Commission, it found that between 1996 and 1999, 
the Immigration and Naturalization Service intercepted a total 
of 1,187 stowaways and 247 individuals with fraudulent 
documents arriving aboard vessels.
  Cargo theft was also identified as a major problem, not only 
on port property but also as the cargo is in transit to its 
final destination. Quantifying the amount of cargo theft that 
occurred is nearly impossible since law enforcement agencies do 
not collect data on cargo theft, and State law enforcement 
officials report theft in different fashions. Some law 
enforcement officials estimate the direct loss of cargo theft 
to be about $6 billion annually, however, the industry believes 
the direct loss to be more than $12 billion annually. A study 
published by the Rand Institute indicates that the theft of 
high technology products alone in the United States could 
exceed $5 billion annually in direct and indirect costs. The 
Commission report indicates that the majority of cargo theft is 
often committed by organized criminal groups acting with 
advance knowledge of shipments.
  Export crime is also a major issue confronting seaports. 
Export crime includes the unlawful export of controlled 
commodities such as munitions or arms. For instance, law 
enforcement officials seized six containers of sodium sulfide, 
a munitions list item and component of mustard gas, which was 
intended for export to Syria. Other export crimes include 
money-laundering of large amounts of currency in order to hide 
criminal proceeds, and the export of stolen vehicles.
  The Commission's major recommendation addressing crime called 
for better data collection of information on seaport related 
crime. Better data would assist in responding to criminal 
threats, and allow for a targeted approach to law enforcement. 
Specifically, the Commission recommended the evaluation of the 
feasibility of capturing cargo theft through the National 
Incident-Based Reporting System.
  The Commission also recommended greater coordination of 
Federal, State, and local law enforcement authorities. 
Specifically, the Commission recommended action to coordinate 
law enforcement officials, and advocated utilizing the Coast 
Guard's ``Captain of the Port Authority'' to create local port 
security committees to conduct annual crime threat assessments 
of U.S. seaports. Another major recommendation was to call for 
the creation of a national-level security subcommittee to 
establish voluntary minimum security guidelines for physical 
security at U.S. seaports.

                     Seaport Security and Terrorism

  The Commission concluded that the threat of terrorism to U.S. 
seaports was low. However, the vulnerability to terrorism was 
rated as high. The Commission concluded that seaports are 
relatively open and accessible, and handle massive volumes of 
all sorts of cargo that could be sabotaged in furtherance of 
terrorist objectives. Additionally, seaports tend to be located 
close to large population bases, on waterway systems that 
terrorists could use to easily transmit wide reaching harm. For 
instance, the detonation of a bomb, the release of 
contaminants, or the smuggling of chemical or traditional 
weapons could impact many communities located in proximity to a 
port or waterway.
  The Commission's evaluation of seaport security and 
vulnerability found that coordination among law enforcement 
officials is generally acceptable where FBI Joint Terrorism 
Task Forces exist. However, it should be emphasized that the 
existing Task Forces do not evaluate the vulnerability of U.S. 
seaports for secretive crimes such as smuggling and terrorism. 
Additionally, the report recommended that the Coast Guard and 
FBI coordinate with relevant agencies to develop a system for 
categorizing seaport physical and information infrastructure 
based on vulnerability and threat. The Commission also 
recommended that the FBI include seaports in the regular 
domestic terrorism surveys to assess potential threat. 
Moreover, the Commission indicated that the Coast Guard Captain 
of the Port and FBI should ensure that their respective 
Maritime Counter terrorism Plans and Incident Contingency Plans 
are updated and coordinated annually, and exercised regularly 
with other concerned Federal, State, local, and private 
entities.

                          Legislative History

  S. 1214 was introduced on July 20, 2001, by Senator Hollings 
and cosponsored by Senator Graham. The bill is similar to 
legislation introduced in the 106th Congress.
  During the 106th Congress, in response to the findings of the 
Interagency Commission on Crime and Security in U.S. Seaports, 
Senators Hollings introduced S. 2965 on July 27, 2000. The bill 
was cosponsored by Senators Graham, Breaux, and Cleland. On 
October 4, 2000, the Committee on Commerce, Science, and 
Transportation held an oversight hearing on seaport security 
and the recommendations of the Interagency Commission on Crime 
and Security in U.S. seaports. The Committee heard testimony 
from Senator Bob Graham, the Coast Guard, Maritime 
Administration, and the Department of Justice, as well as the 
American Association of Port Authorities and a representative 
from the International Longshoremen's & Warehousemen's Union.
  S. 2965 would have directed the Commandant of the Coast Guard 
to establish a Task Force on Port Security, which would have 
been responsible for implementing all of the provisions of the 
legislation. S. 2965 would have required the U.S. Coast Guard 
to establish local port security committees at each U.S. 
seaport, to be chaired by the local U.S. Coast Guard Captain-
of-the-Port, to help coordinate law enforcement and security at 
U.S. seaports. S. 2965 would have directed the Task Force on 
Port Security to develop port security threat assessments for 
U.S. seaports which must be revised at least every three years, 
and to develop voluntary minimum security guidelines for 
seaports, including a ``model port'' concept for all seaports, 
and recommended ``best practices'' guidelines for use by 
maritime terminal operators.
  The bill would have provided incentives for both port 
infrastructure improvements and research and development of new 
port security equipment, including $10 million per annum in 
loan guarantees to cover the costs of port security 
infrastructure improvements and the establishment of a $12 
million per annum matching competitive grant program to develop 
and transfer technology to enhance seaport security. 
Additionally, the bill would have required the Attorney General 
to coordinate reports of seaport related crimes and work with 
State law enforcement officials to harmonize the reporting of 
data on cargo theft, and authorize grants to States to help 
modify their crime reporting systems. S. 2965 also would have 
required Customs to update reporting requirements on cargo and 
to provide advance notice of cargo movements to help facilitate 
law enforcement. Finally, the bill would have reauthorized an 
extension of tonnage duties through 2006, and provide $40 
million from the collection of these duties to carry out all of 
the provisions of the Port and Maritime Security Act. No 
further action was taken on the Port and Maritime Security Act 
of 2000.
  In response to concerns about last year's bill, S. 1214 has 
been modified. The bill would require the Secretary of 
Transportation to establish a public/private task force to 
implement the provisions of the legislation. The bill shifts 
more responsibility to local authorities, in order to take into 
account the different nature and characteristics of seaport 
operation. Instead of establishing minimum standards, the bill 
would require the Coast Guard to establish a process for 
conducting port vulnerability assessments, and provide funds 
for the Coast Guard to evaluate the 50 most economically and 
strategic seaports in the United States. One year after the 
completion of an assessment, the seaport would be required to 
submit a security program for approval to the Coast Guard 
Captain of the Port.
  The bill will require the Coast Guard to set up local port 
security committees to help facilitate law enforcement. 
Further, the bill would require State and marine terminal 
operators to pay for enhanced security. The bill makes more 
funds directly available in grants and loans for security 
equipment and infrastructure. Additionally, the bill will 
eliminate the research and development program on new port 
security equipment in favor of directly providing funds to 
Customs to purchase non-intrusive seaport security screening 
equipment. Another major change to the bill is the creation of 
a program to certify and educate marine security personnel.
  On July 24, 2001, the Committee held a full Committee hearing 
on seaport security issues and S. 1214. The Committee heard 
from: Senator Bob Graham; the Maritime Administration; Customs; 
Coast Guard; Director of Office of Intelligence and Security, 
Department of Transportation; a representative of the American 
Association of Port Authorities; President and LEO Maher 
Terminals Inc.; Vice President, International Transportation 
Services Inc.; a representative of the American Institute of 
Marine Underwriters; and the Executive Director of the Maritime 
Security Council.
  On August 2, 2001, S. 1214 was ordered to be reported 
favorably, without amendment.

                      Summary of Major Provisions

  S. 1214 would require the Secretary of Transportation to 
establish a Port Security Task Force. The Task Force is to be 
comprised of individuals from the Coast Guard and Maritime 
Administration. The Secretary shall request participation in 
the Task Force by Customs and other Federal agencies with an 
interest in crime or terrorism at U.S. seaports. The bill also 
would require the Secretary to appoint various representatives 
from the private sector. The purpose of the Task Force is to 
implement the provisions of the Act, to coordinate programs to 
enhance the security and safety of U.S. seaports, and provide 
long-term solutions for seaport safety issues.
  S. 1214 would require the U.S. Coast Guard's Captain of the 
Port to establish local port security committees at each of the 
50 U.S. seaports required to undergo a vulnerability 
assessment. Membership of these committees is to include 
representatives of the port authority, labor organizations, the 
private sector, and Federal, State, and local government and 
law enforcement personnel. Security committees will define the 
boundaries within which to conduct vulnerability assessments, 
review vulnerability assessments, establish quarterly meetings 
to help coordinate law enforcement between local, State and 
Federal law officials, and conduct an exercise at least once 
every three years to verify the effectiveness of security 
plans. The bill would make available $3,000,000 annually for 
FYs 2003--2006 to help fund the establishment and operation of 
these local security committees.
  The bill would require the Commandant of the Coast Guard, the 
Defense Threat Reduction Agency and the Center for Civil Force 
Protection to develop processes and procedures for conducting 
port security vulnerability assessments for the 50 most 
economically and strategically important U.S. seaports, and to 
revise these assessments at least triennially. The bill would 
also require the Coast Guard to conduct no fewer than 10 
vulnerability assessments annually, in cooperation with port 
authority officials, and authorizes review and comment of the 
assessments by individuals with proper security clearances. The 
bill would mandate the collection of maps and charts of U.S. 
seaports, in addition to planned security measures, secure 
dissemination of the information to relevant law enforcement 
agencies, and an annual report to Congress on the status of 
seaport security, including recommendations for further 
improvements.
  The bill would direct the Coast Guard and Maritime 
Administration to issue regulations to protect the public from 
threats of crime and terrorism resulting from maritime commerce 
at or originating from seaports. Specifically, each of the 50 
ports assessed would be required to submit a security program 
to the local Captain of the Port one year after the completion 
of the vulnerability assessment. Security programs would be 
required to include certain program elements including: 
provisions for maintaining physical security and procedural 
security for passengers, cargo, crew members and workers; a 
credentialing process to limit access to sensitive areas; a 
process to restrict vehicular access; restrictions on the 
carriage of firearms and other prohibited weapons; a private 
security officers certification program, or provisions for the 
use of qualified law enforcement personnel. In evaluating 
security programs the Captain of the Port would be directed to 
incorporate existing security programs and laws and to ensure 
that the security programs do not conflict with any State or 
local law. Security programs would be approved or disapproved 
with explanation by the Captain of the Port. Security programs 
disapproved would be required to be resubmitted within six 
months. The bill would make available $10,000,000 annually for 
FYs 2003--2006 to carry out these requirements.
  The bill requires the Coast Guard and Maritime 
Administration, in consultation with the Task Force, to develop 
voluntary minimum security guidance linked to the U.S. Coast 
Guard Captain-of-the-Port controls and include a model port 
concept, including a set of recommended ``best practices'' 
guidelines for maritime terminal and port operators. The 
guidance is to be used in evaluating security programs required 
after the completion of vulnerability assessments.
  The bill would direct the Coast Guard to pursue adoption of 
the guidance standards by international agreement, and the 
Maritime Administration to pursue adoption of the standards by 
private sector accreditation organizations. The Administrator 
of the Maritime Administration also is required to establish a 
program to assist foreign seaport operators in identifying port 
security risks, implementing security standards and 
facilitating information among foreign ports.
  The bill would create standards and procedures for the 
training and certification of maritime security professionals 
in accordance with internationally recognized law enforcement 
standards. The bill would establish a Maritime Security 
Institute at the U.S. Merchant Marine Academy's Global Maritime 
and Transportation center for training security personnel. The 
bill would make available $7 million for fiscal years 2003 
through 2006 for this program.
  The bill would provide loan guarantees and grants for port 
security infrastructure improvements to help seaports enhance 
their security infrastructure and to purchase new equipment to 
enhance seaport security effectiveness. It would make available 
$8,000,000 and $2,000,000 for loan administration to the 
Secretary of Transportation which could guarantee up to 
$400,000,000 in loans per year for FYs 2003--2006 for this 
purpose. The bill would also make available $10,000,000 for 
grants for port security infrastructure for FYs 2003--2006 for 
the administration of this section.
  The bill would make available $15,000,000 up to $19,000,000 
for each fiscal year 2003-2006 for the purchase and use of non-
intrusive screening and detection equipment for Customs to use 
at U.S. seaports, and requires the Department of Transportation 
to update several reports reflecting the new programs required 
in the bill.
  The bill would instruct the Secretary of Transportation to 
coordinate, if feasible, the reporting of seaport related 
crimes with State law enforcement officials, so as to harmonize 
the reporting of data on cargo theft. If it is not feasible to 
collect data on cargo theft, then the Secretary is required to 
evaluate the feasibility of utilizing private data bases. Cargo 
theft data collected under the provisions of this section are 
required to be collected with respect to the confidentiality of 
shipper and carrier, and data collected would be shared with 
law enforcement through local port security committees. The 
bill would also clarify that (interstate cargo theft) this a 
Federal crime, and increases the criminal penalties for cargo 
theft. The bill would make $1,000,000 available annually for 
FYs 2003--2006 for modifications to data bases, and for grants 
to States to modernize their data bases on cargo theft to carry 
out this section.
  The bill would require the Secretary of Agriculture, 
Secretary of the Treasury, Secretary of Transportation, and the 
Attorney General to work together to establish shared dockside 
inspection facilities at seaports for Federal and State 
agencies. The bill would make available $1,000,000 annually for 
FYs 2003--2006 to carry out this section. The bill would also 
direct the Customs Service, consistent with plans in the 
development of the Automated Commercial Environment Project, to 
improve reporting of imports at seaports, and to disseminate 
that information to relevant law enforcement agencies with a 
need to monitor cargo.
  In order to fund the provisions included in the bill, this 
section authorizes an extension of tonnage duties through 2006, 
and would make directly available $56,000,000 to $59,000,00 
annually, with increases of one million each year, from these 
duties for FYs 2003--2006 to carry out the Port and Maritime 
Security Act of 2001.

                            Estimated Costs

  In compliance with subsection (a)(3) of paragraph 11 of rule 
XXVI of the Standing Rules of the Senate, the Committee states 
that, in its opinion, it is necessary to dispense with the 
requirements of paragraphs (1) and (2) of that subsection in 
order to expedite the business of the Senate.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:
  S. 1214, as reported, would authorize programs to enhance 
security at U.S. seaports. The bill requires port authorities 
and marine terminal authorities to participate in a 
vulnerability assessment of their facility, and then would 
require them to submit a security program for review and 
approval to the U.S. Coast Guard. While the bill does not 
directly mandate a specific system of security and security 
infrastructure, the Coast Guard could choose to disapprove a 
security program for reason of inadequate physical security 
infrastructure. In the event of the disapproval of the program, 
the port authority and the marine terminal authority would be 
required to resubmit the security program. The bill does not 
require approval of revised security programs, however, the 
U.S. Coast Guard is required to make annual recommendations to 
improve port security. However, while the cost is not 
quantifiable, it is probable that the costs of port and marine 
terminal authorities implementing security programs nationwide 
will exceed the limited amount of loans and grants provided for 
in the bill and therefore have some economic impact on port 
authorities and marine terminal operators..
  The bill will have an impact on privacy, since the security 
programs are required to have an element that would mandate a 
credentialing process for individuals entering into sensitive 
areas. The specifics of the credentialing process are left open 
to be determined by port and marine terminal authorities 
through the medium of the submission of their security 
programs. The bill will also increase paper work at port and 
marine terminal authorities, by requiring them to submit 
security programs to the U.S. Coast Guard, however, mitigating 
this burden, is the fact that existing security programs can be 
made part of the mandated security program. The legislation 
will have no further effect on the number or types of 
individuals and businesses regulated, the economic impact of 
such regulation, the personal privacy of affected individuals, 
or the paperwork required from such individuals and businesses.

                      Section-by-Section Analysis

SECTION 1. SHORT TITLE

  This section designates the Act as the ``Port and Maritime 
Security Act of 2001''.

SECTION 2. FINDINGS

  This section outlines the following findings: U.S. seaports 
conduct the majority of international trade in passengers and 
cargo; seaport commerce is expected to grow by three-times in 
the next twenty (20) years; seaports are often a major location 
for Federal crimes; seaports are vulnerable to terrorist 
activities; seaports are international boundaries, but receive 
no Federal funds for their infrastructure; non-intrusive 
inspections of containerized cargo at seaports are not 
adequate; the cruise ship industry is an attractive target for 
terrorists; effective physical security and access controls at 
seaports are necessary to prevent crime and threats to seaport 
operations; the Interagency Commission on Crime and Security in 
U.S. Seaports has issued recommendations for improving security 
at seaports; and Congress finds that seaport security should be 
enhanced by improving communication amongst law enforcement 
officials, formulating standards for physical seaport security 
needs, providing financial incentives to improve seaport 
security, investing in long-term technology enhancements, 
harmonizing law enforcement data collection, creating shared 
inspection facilities, and improving U.S. Customs Service 
reporting procedures.

SECTION 3. PORT SECURITY TASK FORCE

   This section requires the Secretary of Transportation to 
establish a Port Security Task Force. The Task Force is to be 
comprised of individuals from the public and private sector 
including the Coast Guard and Maritime Administration. The 
Secretary is required to request participation of Customs and 
invite other Federal agencies with an interest in crime or 
threats of terrorism at U.S. seaports. The bill also requires 
the Secretary to appoint various representatives from the 
private sector. The purpose of the Task Force is to implement 
the provisions of the Act; coordinate programs to enhance the 
security and safety of U.S. seaports; provide long-term 
solutions for seaport safety issues; coordinate the security 
operations of local port security committees; ensure that the 
public and local port security committees are kept informed 
about seaport security enhancement developments; and to provide 
guidance for the award of grants and loans for infrastructure 
improvements. $1,000,000 is made available annually for the 
purpose of this section FYs 2003--2006.

SECTION 4. ESTABLISHMENT OF LOCAL PORT SECURITY COMMITTEES

   This section requires the U.S. Coast Guard's Captain of the 
Port to establish Local Port Security Committees at each U.S. 
seaport required to undergo a vulnerability assessment. 
Membership of these committees is to include representatives of 
the port authority, labor organizations, the private sector, 
and Federal, State, and local government, and Federal, State, 
and local law enforcement personnel. Security committees will 
define the boundaries within Local Port Security committees, 
which to conduct vulnerability assessments, review 
vulnerability assessments, establish quarterly meetings to help 
coordinate law enforcement between local, State and Federal law 
officials, and conduct an exercise at least once every three 
years to verify the effectiveness of security programs. 
$3,000,000 is made available annually for purpose of this 
section FYs 2003--2006.

SECTION 5. COAST GUARD PORT SECURITY VULNERABILITY ASSESSMENTS

   This section requires the Commandant of the Coast Guard, the 
Defense Threat Reduction Agency and the Center for Civil Force 
Protection to develop processes and procedures for conducting 
port security vulnerability assessments for the 50 most 
economically and strategic U.S. seaports, and to revise this 
assessment at least triennially. Local Port Security Committees 
would define the boundaries in which would be included in the 
vulnerability assessments, such areas could include marine 
terminals under private and public operation. This section also 
would require the Coast Guard to conduct no fewer than 10 
vulnerability assessments annually, in cooperation with local 
port authority officials. This section would authorize review 
and comment of the assessments by individuals with proper 
security clearance to ensure that the assessment takes into 
consideration all relevant security measures. This section also 
mandates the Coast Guard to collect maps and charts of U.S. 
seaports, in addition to listing details of security measures 
in place. The Coast Guard is responsible for the secure 
dissemination of the information to relevant law enforcement 
agencies, an annual report on the status of seaport security, 
including recommendations for further improvements. $10,000,000 
is made available annually for FYs 2003--2006 for vulnerability 
assessments.

SECTION 6. MARITIME TRANSPORTATION SECURITY PROGRAMS

   This section of the bill directs the Coast Guard and 
Maritime Administration to issue regulations to protect the 
public from threats of crime and terrorism resulting from 
maritime commerce at and originating from seaports. 
Specifically, each port assessed under the provisions of 
section 5 would be required to submit a security program to the 
local Captain of the Port, one year after the completion of the 
vulnerability assessment . Security programs would be required 
to include certain program elements including: a provision for 
maintaining physical security and procedural security for 
passenger, cargo, crew members and workers; a credentialing 
process to limit access to sensitive areas; a process to 
restrict vehicular access; a set of restrictions on the 
carriage of firearms and other prohibited weapons; a private 
security officers training program, or provision for the use 
qualified law enforcement personnel. In evaluating security 
programs the Captain of the Port would be directed to 
incorporate existing security programs and laws and to ensure 
that the security programs do not conflict with any State or 
local law, to help eliminate redundancies, and allow existing 
practices to continue. Security programs would be approved or 
disapproved with reason a explanation by the Captain of the 
Port, and if disapproved, the Captain of the Port shall provide 
a reason for the disapproval. Security programs disapproved 
would be required to be resubmitted within six months for 
approval.

SECTION 7. SECURITY PROGRAM GUIDANCE

  This section requires the Coast Guard and Maritime 
Administration, in consultation with the Task Force to develop 
voluntary minimum security guidance that is linked to the U.S. 
Coast Guard Captain-of-the-Port controls and include a model 
port concept and include a set of recommended ``best 
practices'' guidelines for the use of maritime terminal and 
port operators. The guidance is supposed to be revised not less 
frequently than every 5 years, and to include the same elements 
required in Section 6. The guidance should be used to benchmark 
review of security programs, however, U.S. ports all have 
unique characteristics and patterns of trade, and each pose 
different risks, and the Coast Guard should take these 
characteristics into account when reviewing security programs.

SECTION 8. INTERNATIONAL SEAPORT SECURITY

   This section directs the Coast Guard to pursue adoption of 
the guidance standards by international agreement, and the 
Maritime Administration to pursue adoption of the standards by 
private sector accreditation organizations. The Administrator 
of the Maritime Administration also is required to establish a 
program to assist foreign seaport operators in identifying port 
security risks, implementing security standards and 
facilitating information amongst foreign ports. The 
Administrator will work with the State Department and 
Department of Defense to identify foreign ports whose 
vulnerability pose a strategic risk to the U.S. The bill makes 
available $500,00 for each of the fiscal years 2003 through 
2006 for this effort.

SECTION 9. SEAPORT SECURITY TRAINING

  This section requires the Secretary of Transportation to 
create standards and procedures for the training and 
certification of maritime security professionals in accordance 
with internationally recognized law enforcement standards. The 
bill would establish a Maritime Security Institute at the U.S. 
Merchant Marine Academy's Global Maritime and Transportation 
for training security personnel. The bill would make available 
$7 million for fiscal years 2003 through 2006 for purposes of 
this section.

SECTION 10. PORT SECURITY INFRASTRUCTURE IMPROVEMENT

  This section provides loan guarantees and grants for eligible 
port security infrastructure improvements. It makes available 
to the Secretary of Transportation $8,000,000 and $2,000,000 
for loan administration which could guarantee up to 
$400,000,000 in loans per year for FY2003- 2006 for this 
purpose. The loan guarantee provisions are required to be 
provided consistent with the terms provided to Title XI 
shipbuilding and shipyard modernization loan guarantees. In 
evaluating the creditworthiness of the applicant the Secretary 
should take into account the financial strength of the port or 
marine terminal operator. The bill also makes available 
$10,000,000 for grants for port security infrastructure for FYs 
2003--2006 for each the administration of this section.

SECTION 11. SCREENING AND DETECTION EQUIPMENT

   This section makes available $15,000,000 to $19,000,000 for 
each fiscal year 2003-2006 for the purchase and use of non-
intrusive screening and detection equipment for U.S. Customs to 
use at U.S. seaports.

 SECTION 12. ANNUAL REPORT ON MARITIME SECURITY AND TERRORISM

  This section amends the International Maritime and Port 
Security Act by requiring the report submitted under that Act 
to include a description of activities undertaken under the 
Port and Maritime Security Act of 2001, and an analysis of the 
effect of those activities on port security against acts of 
terrorism.

SECTION 13. REVISION OF PORT SECURITY PLANNING GUIDE

  This section directs the Secretary of Transportation to 
publish a revised version of the document ``Port Security: A 
National Planning Guide,'' within 3 years after the enactment 
of this Act and to make the document available on the Internet.

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

  This section instructs the Secretary of Transportation to 
coordinate, if feasible, the reporting of Federal seaport 
related crimes with Federal agencies, and also with State law 
enforcement officials, so as to harmonize the reporting of data 
on cargo theft. If it is not feasible for the Federal 
Government to collect data on cargo theft, then the Secretary 
is required to evaluate the feasibility of utilizing private 
data bases. Cargo theft data collected under the provisions of 
this section are is to be collected with confidentiality of 
shipper and carrier, and data collected would be shared with 
law enforcement through local port security committees. The 
bill also clarifies that interstate cargo theft is a Federal 
crime of, and increases the criminal penalties for cargo theft. 
The bill makes $1,000,000 available annually for FYs 2003--2006 
for modifications to data bases, and for grants to States to 
modernize their data bases on cargo theft to carry out this 
section.

SECTION 15. SHARED DOCKSIDE INSPECTION FACILITIES

  This section requires the Secretary of Agriculture, Secretary 
of the Treasury, Secretary of Transportation, and the Attorney 
General to work together to establish shared dockside 
inspection facilities at seaports for Federal and State 
agencies. Funds made available under this section should be 
used to address the areas which have the worst problems 
accommodating Federal inspection needs. Makes available 
$1,000,000 annually for FYs 2003--2006 to carry out this 
section.

SECTION 16. IMPROVED CUSTOMS REPORTING PROCEDURES

  This section directs the Customs Service, consistent with 
plans in the development of the Automated Commercial 
Environment Project, to improve reporting of imports at 
seaports, and to disseminate that information to relevant law 
enforcement agencies with a need to monitor cargo.

SECTION 17. 4-YEAR REAUTHORIZATION OF TONNAGE DUTIES

  The bill authorizes an extension of tonnage duties through 
2006, and makes directly available $56,000,000- $59,000,00 
annually, with increases of one million each year, from these 
duties for FYs 2003--2006 to carry out the Port and Maritime 
Security Act.

SECTION 18. DEFINITIONS

  The bill defines ``Secretary'' as the Secretary of 
Transportation, and ``Task Force'' as the Port Security Task 
Force established under section 3.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                TITLE 18. CRIMES AND CRIMINAL PROCEDURE

                             PART I. CRIMES

                   CHAPTER 31. EMBEZZLEMENT AND THEFT

Sec.  659. Interstate or foreign shipments by carrier; State 
                    prosecutions

  Whoever embezzles, steals, or unlawfully takes, carries away, 
or conceals, or by fraud or deception obtains from any pipeline 
system, railroad car, wagon, motortruck, trailer, or other 
vehicle, or from any tank or storage facility, station, house, 
platform or depot or from any steamboat, vessel, or wharf, or 
from any aircraft, air cargo container, air terminal, airport, 
aircraft terminal or air navigation facility, or from any 
intermodal container, trailer, container freight station, 
warehouse, or freight consolidation facility [with intent to 
convert to his own use] any goods or chattels moving as or 
which are a part of or which constitute an interstate or 
foreign shipment of freight, express, or other property; or
  Whoever buys or receives or has in his possession any such 
goods or chattels, knowing the same to have been embezzled or 
stolen; or
  Whoever embezzles, steals, or unlawfully takes, carries away, 
or by fraud or deception obtains [with intent to convert to his 
own use] any baggage which shall have come into the possession 
of any common carrier for transportation in interstate or 
foreign commerce or breaks into, steals, takes, carries away, 
or conceals any of the contents of such baggage, or buys, 
receives, or has in his possession any such baggage or any 
article therefrom of whatever nature, knowing the same to have 
been embezzled or stolen; or
  Whoever embezzles, steals, or unlawfully takes by any 
fraudulent device, scheme, or game, from any railroad car, bus, 
vehicle, steamboat, vessel, or aircraft operated by any common 
carrier moving in interstate or foreign commerce or from any 
passenger thereon any money, baggage, goods, or chattels, or 
whoever buys, receives, or has in his possession any such 
money, baggage, goods, or chattels, knowing the same to have 
been embezzled or stolen--
  Shall in each case be fined under this title or imprisoned 
not more than ten years, or both; but if the amount or value of 
such money, baggage, goods or chattels does not exceed $ 1,000, 
he shall be fined under this title or imprisoned not more than 
[one year] three years, or both. Nothwithstanding 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.
  The offense shall be deemed to have been committed not only 
in the district where the violation first occurred, but also in 
any district in which the defendant may have taken or been in 
possession of the said money, baggage, goods, or chattels.
  The carrying or transporting of any such money, freight, 
express, baggage, goods, or chattels in interstate or foreign 
commerce, knowing the same to have been stolen, shall 
constitute a separate offense and subject the offender to the 
penalties under this section for unlawful taking, and the 
offense shall be deemed to have been committed in any district 
into which such money, freight, express, baggage, goods, or 
chattels shall have been removed or into which the same shall 
have been brought by such offender.
  To establish the interstate or foreign commerce character of 
any shipment in any prosecution under this section the waybill 
or other shipping document of such shipment shall be prima 
facie evidence of the place from which and to which such 
shipment was made. The removal of property from a pipeline 
system which extends interstate shall be prima facie evidence 
of the interstate character of the shipment of the property.
  A judgment of conviction or acquittal on the merits under the 
laws of any State shall be a bar to any prosecution under this 
section for the same act or acts. 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. Nothing contained in this section shall be construed 
as indicating an intent on the part of Congress to occupy the 
field in which provisions of this section operate to the 
exclusion of State laws on the same subject matter, nor shall 
any provision of this section be construed as invalidating any 
provision of State law unless such provision is inconsistent 
with any of the purposes of this section or any provision 
thereof.
  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.

                      TITLE 46. APPENDIX. SHIPPING

                       CHAPTER 4. TONNAGE DUTIES

Sec.  121. Amount of tonnage duties

  Upon vessels which shall be entered in the United States from 
any foreign port or place there shall be paid duties as 
follows: On vessels built within the United States but 
belonging wholly or in part to subjects of foreign powers, at 
the rate of thirty cents per ton; on other vessels not of the 
United States, at the rate of fifty cents per ton, and any 
vessel any officer of which shall not be a citizen of the 
United States shall pay a tax of fifty cents per ton.
  A tonnage duty of 9 cents per ton, not to exceed in the 
aggregate 45 cents per ton in any one year, for fiscal years 
1991 [through 2002] through 2006, and 2 cents per ton, not to 
exceed in the aggregate 10 cents per ton in any one year, for 
each fiscal year thereafter is imposed at each entry on all 
vessels which shall be entered in any port of the United States 
from any foreign port or place in North America, Central 
America, the West India Islands, the Bahama Islands, the 
Bermuda Islands, or the coast of South America bordering on the 
Caribbean Sea, or Newfoundland, and on all vessels (except 
vessels of the United States, recreational vessels, and barges, 
as those terms are defined in section 2101 of title 46, United 
States Code) that depart a United States port or place and 
return to the same port or place without being entered in the 
United States from another port or place; and a duty of 27 
cents per ton, not to exceed $ 1.35 per ton per annum, for 
fiscal years 1991 [through 2002] through 2006, and 6 cents per 
ton, not to exceed 30 cents per ton per annum, for each fiscal 
year thereafter is imposed at each entry on all vessels which 
shall be entered in any port of the United States from any 
other foreign port. However, neither duty shall be imposed on 
vessels in distress or not engaged in trade.
  Upon every vessel not of the United States, which shall be 
entered in one district from another district, having on board 
goods, wares, or merchandise taken in one district to be 
delivered in another district, duties shall be paid at the rate 
of 50 cents per ton: Provided, That no such duty shall be 
required where a vessel owned by citizens of the United States, 
but not a vessel of the United States, after entering an 
American port, shall, before leaving the same, be registered as 
a vessel of the United States. On all foreign vessels which 
shall be entered in the United States from any foreign port or 
place, to and with which vessels of the United States are not 
ordinarily permitted to enter and trade, there shall be paid a 
duty at the rate of $ 2 per ton; and none of the duties on 
tonnage above mentioned shall be levied on the vessels of any 
foreign nation if the President of the United States shall be 
satisfied that the discriminating or countervailing duties of 
such foreign nations, so far as they operate to the 
disadvantage of the United States, have been abolished. Any 
rights or privileges acquired by any foreign nation under the 
laws and treaties of the United States relative to the duty of 
tonnage on vessels shall not be impaired; and any vessel any 
officer of which shall not be a citizen of the United States 
shall pay a tax of 50 cents per ton.

                             * * * * * * *

Sec.  132. Vessels not entering by sea

  Vessels entering otherwise than by sea from a foreign port at 
which tonnage or lighthouse dues or other equivalent tax or 
taxes are not imposed on vessels of the United States shall be 
exempt from the tonnage duty of 9 cents per ton, not to exceed 
in the aggregate 45 cents per ton in any one year, for fiscal 
years 1991 [through 2002] through 2006, and 2 cents per ton, 
not to exceed in the aggregate 10 cents per ton in any one 
year, for each fiscal year thereafter prescribed by section 
thirty-six of the Act approved August fifth, nineteen hundred 
and nine, entitled ``An Act to provide revenue, equalize 
duties, and encourage the industries of the United States, and 
for other purposes.''


                       merchant marine act, 1936


           title xi--federal ship financing guarantee program


                     [46 u.s.c. app. 1101 et seq.]


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.

              INTERNATIONAL MARITIME AND PORT SECURITY ACT

SEC. 905. THREAT OF TERRORISM TO UNITED STATES PORTS AND VESSELS. [46 
                    U.S.C. APP 1802]

  Not later than February 28, 1987, and annually thereafter, 
the Secretary of Transportation shall report to the Congress on 
the threat from acts of terrorism to United States ports and 
vessels operating from those ports.
  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.