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                                                       Calendar No. 210
108th Congress                                                   Report
 1st Session                                                    108-104



                              R E P O R T

                                 OF THE



                                 S. 929

                 July 16, 2003.--Ordered to be printed


                     U.S. GOVERNMENT PRINTING OFFICE
  19-010                    WASHINGTON : 2003


                      one hundred eighth congress

                             first session

                     JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska                  ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana                DANIEL K. INOUYE, Hawaii
TRENT LOTT, Mississippi              JOHN D. ROCKEFELLER IV, West 
KAY BAILEY HUTCHISON, Texas              Virginia
OLYMPIA J. SNOWE, Maine              JOHN F. KERRY, Massachusetts
SAM BROWNBACK, Kansas                JOHN B. BREAUX, Louisiana
GORDON SMITH, Oregon                 BYRON L. DORGAN, North Dakota
PETER G. FITZGERALD, Illinois        RON WYDEN, Oregon
JOHN ENSIGN, Nevada                  BARBARA BOXER, California
GEORGE ALLEN, Virginia               BILL NELSON, Florida
JOHN E. SUNUNU, New Hampshire        MARIA CANTWELL, Washington
                                     FRANK LAUTENBERG, New Jersey
           Jeanne Bumpus, Staff Director and General Counsel
                   Ann Begeman, Deputy Staff Director
                  Robert W. Chamberlin, Chief Counsel
               Kevin D. Kayes, Democratic Staff Director
                Gregg Elias, Democratic General Counsel

                                                       Calendar No. 210
108th Congress                                                   Report
 1st Session                                                    108-104




                 July 16, 2003.--Ordered to be printed


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

                              R E P O R T

                         [To accompany S. 929]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 929) to direct the Secretary of 
Transportation to make grants for security improvements to 
over-the-road bus operations, and for other purposes, having 
considered the same, reports favorably thereon with amendments 
and recommends that the bill (as amended) do pass.

                          Purpose of the Bill

  The purposes of this bill, as reported, are to establish a 
direct grant program to improve security of over-the-road buses 
and to authorize the Secretary of Homeland Security to conduct 
a study to develop recommendations for improved security of 
over-the-road bus operations.

                          Background and Needs

  Over-the-road buses, or motorcoaches, operate in both 
commuter and intercity operations. The intercity motorcoach 
industry, which includes regularly scheduled point-to-point 
service and chartered tour operations, carried more than 774 
million passengers in the United States in 2000. Approximately 
35 to 40 million travelled on fixed route intercity buses, 
while the remainder of passengers utilized charter, tour, 
commuter, or local bus services. The 12 class I bus companies, 
defined by the Bureau of Transportation Statistics as having 
revenues of at least $10 million or more annually, carried 
approximately 33 million passengers in 2000. According to the 
Bureau of Transportation Statistics, the intercity bus 
transportation industry serves 5,000 locations nationwide, many 
of which are rural communities that might not have other modes 
of intercity transportation. Intercity bus transportation poses 
difficult logistical security problems. Of the 4,000 bus 
companies, 90 percent operate fewer than 25 buses.
  There are worrisome precedents for security breaches on 
buses. For example, in the Middle East, terrorists have used 
buses to inflict casualties in a number of crowded cities. In 
the United States, Greyhound drivers and passengers were the 
targets of at least four serious assaults in the last two 
years, including one accident that killed 7 passengers and 
another that resulted in 33 injuries. There also have been at 
least 3 other serious security breaches. No other major United 
States transportation mode experienced as many incidents of 
passenger attacks during that period.
  In response to the incidents, Greyhound has taken a number of 
steps to enhance security. These steps include: conducting 
random screening of passengers and baggage (through 
``wanding'') at selected terminals; requiring personal 
identification when purchasing tickets; providing cell phones 
to drivers as an interim emergency communications system; 
increasing security personnel in terminals; giving the driver 
the right to limit access to the first row of seats; and 
establishing information and communications systems to aid and 
coordinate with law enforcement.
  Federal support is needed to further improve bus security. 
Additional security measures could include: wanding in all 
terminals; full implementation of an identification system when 
purchasing tickets; a nationwide emergency communications 
system providing location, audio, and silent monitoring; 
enhanced driver compartment security; increased security 
training; development and maintenance of information and 
communication systems with law enforcement; and other measures 
to make buses, terminals, and garages more secure.
  In the wake of the September 11, 2001, terrorist attacks, the 
Committee has reexamined the security of all transportation 
modes within its jurisdiction. With increased aviation and port 
security efforts underway, other modes could be more vulnerable 
to attacks by terrorists and criminals.
  With so many Americans utilizing over-the-road buses to meet 
their transportation needs, it is necessary and appropriate for 
the Federal government to utilize public resources to help 
satisfy the transportation security needs of the bus-riding 
public, as well as provide incentives for increased private 
investment to enhance security.
  In H.R. 4775, the Supplemental Appropriation Act for Further 
Recovery From and Response to Terrorist Attacks on the United 
States for fiscal year 2002 (P.L. 107-206), $15 million was 
appropriated for bus security measures intended to address 
similar security-related purposes as identified in S. 929. 
Additionally, $10 million was included in the fiscal year 2003 
Omnibus Appropriations Resolution, H.J. Res. 2 (P.L. 108-7) for 
the same purpose.

                          Legislative History

  During the 107th Congress, Senator Cleland introduced S. 
1739, which would have established a similar grant program 
within the Department of Transportation (DOT). The bill was 
reported favorably on August 1, 2002, but failed to receive 
consideration by the full Senate prior to adjournment of the 
107th Congress.
  Senator McCain introduced S. 929 on April 28, 2003. The bill 
is cosponsored by Senators Hollings, Hutchison, Breaux, 
Lautenberg, Smith, Feinstein, Leahy, and Snowe. During 
Committee consideration of S. 929, the Committee adopted an 
amendment that recognized Senator Cleland's role in the 
legislation. The amendment also places responsibility for the 
grant program with the Department of Homeland Security (DHS), 
instead of the DOT, since transportation security is now vested 
with DHS. Both DOT and DHS agree that it is appropriate for the 
grant program to be administered by DHS.

                            Estimated Costs

  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 

S. 929--Max Cleland Over-the-Road Bus Security and Safety Act of 2003

    Summary: S. 929 would authorize the Secretary of Homeland 
Security to provide grants to operators of over-the-road buses 
for improving the security of buses and bus terminals. (Over-
the-road buses are characterized by an elevated passenger deck 
above a baggage compartment.) For these grants, the bill would 
authorize the appropriation of $25 million for fiscal year 2003 
and $99 million for fiscal year 2004.
    CBO estimates that implementing S. 929 would cost $124 
million over the 2003-2008 period, assuming appropriation of 
the authorized amounts. Enacting S. 929 would not affect direct 
spending or revenues.
    S. 929 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 929 is shown in the following table. The 
costs of this legislation fall within budget function 400 
(transportation). For this estimate, CBO assumes that S. 929 
will be enacted in fiscal year 2003, and that the authorized 
amounts will be appropriated each year. We assume funds 
authorized for 2003 will be provided in a supplemental 
appropriation. Estimates of outlays are based on information 
from the Federal Transit Administration and historical spending 
patterns of similar programs.

                                                                  By fiscal year, in millions of dollars--
                                                              2003     2004     2005     2006     2007     2008
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization level.......................................       25       99        0        0        0        0
Estimated outlays.........................................        1       13       43       36       26        5

    Intergovernmental and private-sector impact: S. 929 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Previous CBO estimate: On March 10, 2003, CBO transmitted a 
cost estimate for H.R. 875, the Over-the-Road Bus Security and 
Safety Act of 2003, as ordered reported by the House Committee 
on Transportation and Infrastructure on February 26, 2003. S. 
929 is similar to the House bill; however, the House version 
authorized the appropriation of lower amounts, and the cost 
estimates reflect this difference.
    Estimate prepared by: Federal costs: Rachel Milberg; Impact 
on State, Local, and Tribal Governments: Gregory Waring; and 
Impact on the Private Sector: Jean Talarico.
    Estimate approved by: Robert A. Sunshine, Assistant 
Director for Budget Analysis.

                      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. 929 would establish a direct grant program. The 
legislation would have no significant effect on the number or 
types of individuals and businesses regulated.

                       NUMBER OF PERSONS COVERED

  S. 929 is intended to improve the security of over-the-road 
bus transportation. The number of persons covered is 
anticipated to include bus riders and bus employees, as well as 
all drivers and passengers who share the road. In addition, 
security personnel, security consulting services, and 
industries that manufacture security equipment could be 

                            ECONOMIC IMPACT

  S. 929 is intended to improve security of over-the-road 
buses. It should not have a negative impact on the economy of 
the United States.


  S. 929 would have an impact on privacy to some extent, 
consistent with other transportation security programs, 
including personal privacy of passengers traveling on motor 
coaches operated by carriers receiving grants established by 
the legislation.


  S. 929 does not create any new reporting requirements, and 
any impact on paperwork would be dependent on application 
procedures established by the Secretary of Homeland Security.

                      Section-by-Section Analysis

Section 1. Short title

  This section states the bill title as the ``Max Cleland Over-
the-Road Bus Security and Safety Act of 2003''.

Section 2. Emergency over-the-road bus security assistance

  This section would direct the Secretary of Homeland Security, 
acting through the Transportation Security Administration, to 
establish a program for making grants to private operators of 
over-the-road buses for system-wide security improvements to 
their operations, including the reimbursement of extraordinary 
security-related costs incurred since September 11, 2001. 
Eligible uses include: constructing and modifying terminals, 
garages, facilities, and over-the-road buses to assure their 
security; improvements to protect or isolate the driver; 
upgrading, purchasing, or installing manifest or ticketing 
systems; hiring security officers; training employees; 
installing surveillance equipment; conducting employee 
background checks; establishing emergency communications 
systems; and implementing passenger screening programs. This 
section also would clarify that grants under this bill will 
adhere to the existing requirements for over-the-road bus 
operators under section 3038(f) of the Transportation Equity 
Act for the 21st Century. The Federal share will be 90 percent 
of the cost of the improvement for which any grant is made.

Section 3. Plan requirement

  This section would require that an over-the-road bus operator 
submit a plan to the Secretary prior to receiving a grant. The 
plan must comply with the uses described within Section 2 and 
include any additional information the Secretary deems 
necessary to ensure the accountability of amounts made 
available through the grant program. This section also provides 
that an applicant for a grant for improvements at a terminal 
owned and operated by an entity other than the applicant must 
demonstrate to the Secretary that the improvements have been 
coordinated with the terminal's owner or operator.

Section 4. Over-the-road bus defined

  This section would define an over-the-road bus as a bus 
characterized by an elevated passenger deck located over a 
baggage compartment, consistent with the definition used in the 
Transportation Equity Act for the 21st Century.

Section 5. Bus security assessment

  This section would direct the Secretary to submit a 
preliminary report within 180 days of enactment to the Senate 
Committee on Commerce, Science, and Transportation, the House 
Committee on Transportation and Infrastructure, and the House 
Select Committee on Homeland Security. The report will include 
assessments of: the grant program established by the bill; 
actions taken by public and private entities to address 
security issues and recommendations on whether additional 
actions, including legislation, are needed; the economic impact 
of security upgrades on the over-the-road bus industry and its 
employees; ongoing and needed research on over-the-road bus 
security; and industry best practices to enhance security. In 
conducting the assessments, the Secretary is to consult with 
over-the-road bus management and labor representatives, public 
safety and law enforcement officials, and the National Academy 
of Sciences.

Section 6. Funding

  This section would authorize $25 million for the grant 
program for fiscal year 2003 and $99 million for fiscal year 
2004. The section further provides that such sums shall remain 
available until expended.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, the Committee states that the bill as 
reported would make no change to existing law.