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115th Congress     }                              {     Rept. 115-790
                        HOUSE OF REPRESENTATIVES
 2d Session        }                              {        Part 1

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



 
 TRANSPORTATION WORKER IDENTIFICATION CREDENTIAL ACCOUNTABILITY ACT OF 
                                  2018

                                _______
                                

                 June 27, 2018.--Ordered to be printed

                                _______
                                

  Mr. McCaul, from the Committee on Homeland Security, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 5729]

    The Committee on Homeland Security, to whom was referred 
the bill (H.R. 5729) to restrict the department in which the 
Coast Guard is operating from implementing any rule requiring 
the use of biometric readers for biometric transportation 
security cards until after submission to Congress of the 
results of an assessment of the effectiveness of the 
transportation security card program, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Committee Consideration..........................................     3
Committee Votes..................................................     4
Committee Oversight Findings.....................................     4
New Budget Authority, Entitlement Authority, and Tax Expenditures     4
Congressional Budget Office Estimate.............................     4
Statement of General Performance Goals and Objectives............     4
Duplicative Federal Programs.....................................     4
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     4
Federal Mandates Statement.......................................     4
Preemption Clarification.........................................     5
Disclosure of Directed Rule Makings..............................     5
Advisory Committee Statement.....................................     5
Applicability to Legislative Branch..............................     5
Section-by-Section Analysis of the Legislation...................     5
Changes in Existing Law Made by the Bill, as Reported............     6

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Transportation Worker Identification 
Credential Accountability Act of 2018''.

SEC. 2. RESTRICTION ON IMPLEMENTATION OF TRANSPORTATION WORKER 
                    IDENTIFICATION CREDENTIAL BIOMETRIC READER RULE.

  The department in which the Coast Guard is operating may not 
implement the rule entitled ``Transportation Worker Identification 
Credential (TWIC)-Reader Requirements'' (81 Fed. Reg. 57651), and may 
not propose or issue a notice of proposed rulemaking for any revision 
to such rule except to extend its effective date, or for any other rule 
requiring the use of biometric readers for biometric transportation 
security cards under section 70105(k)(3) of title 46, United States 
Code, before the end of the 60-day period beginning on the date of the 
submission under paragraph (5) of section 1(b) of Public Law 114-278 
(130 Stat. 1411 to 1412) of the results of the assessment required by 
that section.

SEC. 3. PROGRESS UPDATES.

  Not later than 30 days after the date of the enactment of this Act, 
and every 90 days thereafter until the submission under paragraph (5) 
of section 1(b) of Public Law 114-278 (130 Stat. 1411 et seq.) of the 
results of the assessment required by that section, the Secretary of 
Homeland Security shall report to the Committee on Homeland Security 
and the Committee on Transportation and Infrastructure of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate regarding the implementation of that 
section.

                          PURPOSE AND SUMMARY

    This legislation prevents the Department of Homeland 
Security from implementing any rule requiring the use of 
biometric readers for biometric transportation security cards 
until the Secretary of the Department of Homeland Security 
publishes and submits to Congress an assessment of the 
effectiveness of the Transportation Worker Identification 
Credential (TWIC) program. The bill also prohibits the proposal 
of any new rule before the end of 60-day period beginning on 
the date of submission of the assessment to Congress.

                  BACKGROUND AND NEED FOR LEGISLATION

    After the attacks of 9/11, ports across the Nation 
increased security procedures to prevent vulnerabilities in our 
Nation's maritime facilities and deny access to criminals. As a 
result, the Maritime Transportation Security Act of 2002 (Pub. 
L. 107-295) established the Transportation Worker 
Identification Credential (TWIC) program, requiring a 
background check and issuant of credentials to workers who 
access secure areas of the Nation's maritime facilities and 
vessels. The Transportation Security Administration (TSA) 
conducts these background checks and issues the credentials for 
eligible workers; however, high costs of credentialing, lapses 
in background checks, and poor management hinder the program's 
security effectiveness.
    In 2011 and 2013, two separate Government Accountability 
Office (GAO) reports indicated the TWIC program lacks 
reliability and recommended reassessing the security benefits 
of the program. In addition, the Department of Homeland 
Security (DHS) Office of Inspector General (OIG) released a 
report in 2016 revealing TWIC background checks lack fraud 
detection capabilities and proper internal controls. The House 
Committee on Homeland Security responded in 2016 and passed 
Public Law 114-278, requiring the Department of Homeland 
Security to complete a comprehensive study on the effectiveness 
of the TWIC program. However, Congress did not legislate on the 
requirement for biometric readers.
    In 2016, the U.S. Coast Guard (USCG) issued a Federal rule 
(81 FR 57651) requiring biometric TWIC card readers to be used 
at high risk maritime facilities by August 23, 2018, as an 
access control measure. However, this rule did not specify 
which facilities would require biometric card readers. As a 
result, industry stakeholders did not initiate the necessary 
investments in biometric readers, and manufacturers refrained 
from producing the readers.
    This bill legislates that the Federal Rule (81 FR 57651) 
not be implemented and no further rulemaking on the TWIC 
program be conducted until after a security effectiveness study 
of the program is complete and can be used to inform future 
rulemaking. Given the problems with the TWIC program 
highlighted by the GAO and the DHS OIG, industry stakeholders 
should not be required to invest in further implementing the 
program until the security value and future of the program can 
be properly determined. As amended, the bill also requires the 
Secretary of Homeland Security to provide periodic updates to 
Congress on the completion of the TWIC program effectiveness 
study required by Public Law 114-278. Despite a requirement to 
commission a study within 60 of enactment of the law, DHS did 
not commission the study until 14 months after enactment and 
has not provided sufficient information to Congress to explain 
the delay.

                                HEARINGS

    On October 30, 2017, the Committee held a field hearing in 
San Pedro, California, entitled ``Examining Physical Security 
and Cybersecurity at Our Nation's Ports.'' The Committee 
received testimony from RADM Todd A. Sokalzuk, Commander, 
Eleventh Coast Guard District, U.S. Coast Guard, U.S. 
Department of Homeland Security; Mr. Carlos C. Martel, Director 
of Field Operations, Los Angeles Field Office, U.S. Customs and 
Border Protection, U.S. Department of Homeland Security; Mr. 
Eugene D. Seroka, Executive Director, The Port of Los Angeles; 
Mr. Mario Cordero, Executive Director, The Port of Long Beach; 
and Mr. Ray Familathe, International Vice-President, 
International Longshore and Warehouse Union.
    On November 8, 2017, the Full Committee held a hearing 
entitled ``Preventing the Next Attack: TSA's Role in Keeping 
Our Transportation Systems Secure.'' The Committee received 
testimony from Hon. David P. Pekoske, Administrator, 
Transportation Security Administration, U.S. Department of 
Homeland Security.

                        COMMITTEE CONSIDERATION

    The Committee met on June 6, 2018, to consider H.R. 5729, 
and ordered the measure to be reported to the House with a 
favorable recommendation, as amended, by unanimous consent. The 
Committee took the following actions:
    The following amendment was offered:
    An amendment offered by Ms. Jackson Lee (#1); was AGREED TO 
by unanimous consent.

    Add at the end a new section entitled ``Sec. ___. Progress 
Updates.''

                            COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto.
    No recorded votes were requested during consideration of 
H.R. 5729.

                      COMMITTEE OVERSIGHT FINDINGS

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has held oversight 
hearings and made findings that are reflected in this report.

   NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
5729, the Transportation Worker Identification Credential 
Accountability Act of 2018, would result in no new or increased 
budget authority, entitlement authority, or tax expenditures or 
revenues.

                  CONGRESSIONAL BUDGET OFFICE ESTIMATE

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, a cost estimate provided by the 
Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974 was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

         STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, H.R. 5729 contains the following 
general performance goals and objectives, including outcome 
related goals and objectives authorized.
    LIST the metrics used to provide results etc.

                      DUPLICATIVE FEDERAL PROGRAMS

    Pursuant to clause 3(c) of rule XIII, the Committee finds 
that H.R. 5729 does not contain any provision that establishes 
or reauthorizes a program known to be duplicative of another 
Federal program.

   CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF 
                                BENEFITS

    In compliance with rule XXI of the Rules of the House of 
Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule 
XXI.

                       FEDERAL MANDATES STATEMENT

    An estimate of Federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

                        PREEMPTION CLARIFICATION

    In compliance with section 423 of the Congressional Budget 
Act of 1974, requiring the report of any Committee on a bill or 
joint resolution to include a statement on the extent to which 
the bill or joint resolution is intended to preempt State, 
local, or Tribal law, the Committee finds that H.R. 5729 does 
not preempt any State, local, or Tribal law.

                  DISCLOSURE OF DIRECTED RULE MAKINGS

    The Committee estimates that H.R. 5729 would require no 
directed rule makings.

                      ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title

    This section provides that this bill may be cited as the 
``Transportation Worker Identification Credential 
Accountability Act of 2018''.

Sec. 2. Restriction on implementation of Transportation Worker 
        Identification Credential biometric reader rule

    This section restricts the U.S. Coast Guard from 
implementing the rule entitled ``Transportation Worker 
Identification Credential (TWIC)_Reader Requirements'', and 
prevents the Coast Guard from proposing a notice of new 
rulemaking that would require the use of biometric readers for 
biometric transportation. These restrictions extend 60 days 
beyond the submission sent to Congress of an assessment of the 
biometric transportation security card program.

Sec. 3. Progress updates

    This section requires the Secretary of the Department of 
Homeland Security to submit a report regarding the 
implementation and results of section 1(b) of Public Law 114-
278 (130 Stat. 1411 et seq.) to the Committee on Homeland 
Security and Committee on Transportation and Infrastructure of 
the House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate. This update shall be 
submitted not later than 30 days after the enactment of this 
Act, and every 90 days thereafter.

         CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    As reported, H.R. 5729 makes no changes to existing law.

                                  [all]