[Senate Report 107-64]
[From the U.S. Government Publishing Office]
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
__________
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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.