HAZMAT Threat Assessment Program

1. HAZMAT Threat Assessment Program SEARCH Membership Group Meeting Washington, DC July 27, 2005

2. Background USA PATRIOT Act - Enacted by Congress following the September 11, 2001 terrorist attacks (Section 1012) • Prohibits states from issuing a license to transport hazardous materials (HAZMAT) in commerce to any individual without a federal determination whether or not the individual poses a security risk. • TSA meets this mandate by requiring drivers seeking to apply for, renew, or transfer a hazardous materials endorsement (HME) on their state-issued CDL to undergo a security threat assessment. • TSA security threat assessment includes a (1) fingerprint-based FBI criminal history records check, (2) an intelligence-related check, and (3) immigration status check.

3. Implementation & Key Dates • Phase I – Summer 2004; TSA completed, with assistance from CBP, named-based checks on all 2.7 million Hazmat drivers. • DHS Secretary Ridge directed fingerprint-based criminal history record checks were to begin no later than January 31, 2005. • December 27, 2004; Deadline for states to declare whether to use the TSA agent (HAZPRINT) to collect driver biographic information, fingerprints, and all associated fees or do so by their own processes. • January 14, 2005 – Final fee rule published; fee-funded program. • Phase II – January 31, 2005; FBI fingerprint-based CHRC, intelligence name check, and immigration status check for new HME applicants. • Phase III – May 31, 2005; FBI fingerprint-based CHRC, intelligence name check, and immigration status check for new, renewal, and transfer HME applicants..

4. State Declarations WA NH VT ME MA MT ND OR MN RI ID SD NY WI CT WY MI PA IA NE NJ NV OH UT IN IL DE CO WV CA VA KS MO KY MD NC TN DC AZ OK NM AR SC MS AL GA TX AK LA States Using TSA Agent FL States Not Using TSA Agent HI

5. Fee Structure TSA Agent (HAZPRINT): • (1) Information Collection Fee: $38 • (2) Threat Assessment Fee: $34 • (3) FBI Fee: $22 • Total fee: $94 States not Using TSA Agent: • (1) Information Collection Fee: varies from state to state, with approximate average of $34 • (2) Threat Assessment Fee: $34 • (3) FBI Fee of $24 (provides $2 handling fee/surcharge by the state) • Total fee: averages approximately $92

6. Interim Criminal Disqualifiers A driver is disqualified from holding an HME if convicted or found not guilty by reason of insanity within the previous 7 years or was released from prison in thelast 5 years for any of the following crimes: May be Eligible for Waiver • Assault with intent to murder • Kidnapping or hostage taking • Rape or aggravated sexual abuse • Unlawful possession, use, sale, manufacture, purchase, distribution, receipt, transfer, shipping, transporting, delivery, import, export of, or dealing in a firearm or other weapon • Extortion • Dishonesty, fraud, or misrepresentation, including identity fraud • Bribery • Smuggling • Immigration violations • Violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) under 18 U.S.C. 1961, or a comparable State law, other than any permanent disqualifying offenses • Robbery • Distribution of, intent to distribute, or importation of a controlled substance • Arson • Conspiracy or attempt to commit any of these crimes

7. Not Eligible for Waiver Espionage Sedition Treason A crime listed in 18 U.S.C. Chapter 113B - Terrorism, or a State law that is comparable May Be Eligible for Waiver Crime involving a transportation security incident Improper transportation of a hazardous material under 49 U.S.C. 5124 or a comparable State law Unlawful possession, use, sale, distribution, manufacture, purchase, receipt, transfer, shipping, transporting, import, export, storage of, or dealing in an explosive or explosive device Murder Violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) under 18 U.S.C. 1961, or a comparable State law, where violations consist of any of the permanent disqualifying offenses Conspiracy or attempt to commit any of these crimes Permanent Criminal Disqualifiers Driver permanently disqualified from holding an HME on a State-issued CDL if convicted or found not guilty by reason of insanity for any of the following crimes:

8. Notification of Security Threat Assessment Results Threat Assessment Determination “No Threat” Determination TSA Issues Applicant “No Threat” Letter and Notifies State Applicant Eligible To Hold HME For Up To Five Years Appeal* TSA Grants Appeal & Notifies State TSA Issues Applicant “Initial Determination Of Threat Assessment” (IDTA) Letter * Applicant Is Ineligible To Hold HME TSA Denies Appeal TSA Issues Applicant IDTA Letter In Cases Warranting Immediate Revocation Of HME & Notifies State “Final Threat” Determination HME State Revokes HME If Applicant Is Current Hazmat Holder * If HME applicant does not submit a written appeal within specified timeframe after receiving IDTA letter, IDTA becomes “Final Determination of Threat Assessment” (FDTA) and TSA notifies State.

9. Waiver Process After Denial Notification Waiver Granted Denial of Hazardous Materials Endorsement (HME) Waiver Evaluation Waiver Submission Applicant Eligible To Hold HME For Up To Five Years TSA Grants Waiver & Notifies State TSA Denies Waiver & Notifies State Applicant Submits Waiver Request To TSA If He/She Believes Mitigating Circumstances Surrounding Disqualifying Offense Warrant Eligibility To Hold HME TSA Evaluates Merits Of Waiver Request TSA Issues Applicant Notification Of Denial Of HME; Applicant Does Not File Appeal Or Loses Appeal * Waiver Denied Applicant Remains Ineligible To Hold HME * If HME applicant does not submit a written waiver request within specified timeframe after “Final Determination of Threat Assessment” (FDTA), he/she is ineligible to apply for a waiver. An applicant may reapply for a new security threat assessment. * Waivers are not reviewed by the same adjudicators who made the initial determinations.

10. Program Snapshot TSA Agent Collection Sites (HAZPRINT) • IOC deployment (1/31/05): 68 sites • FOC deployment (4/31/05): 121 sites • Current (7/27/05): 156 sites • Continuing post-FOC deployment efforts in coordination with State licensing officials, law enforcement, and private industry where system adjustments may be necessary. Applications • Average Monthly (Feb-May): 10,000 • Average Monthly (June-July): 18,000 • Total Applications to date: 74,892 Average Processing Time • May: 82% processed in 5 days or less • Current: 96% processed in 5 days or less Fingerprint Rejection Rates: • TSA Agent (February): 3.1% • TSA Agent (June): 1.8%

11. Move to Electronic Submission Current Process • TSA data entry contractor receives application information and transmits electronically to TSA Screening Gateway • Temporary Process: Rule requires transition to electronic submission no later than 31 July 2005 Web-Based Application Interface Method • Applicant or State can input application information electronically • Requires Internet access • State submits directly to screening gateway • No reprogramming of state licensing system necessary XML File Method • State must input application information • File transmitted via secure file transfer protocol (SFTP) • Requires Internet access • State submits directly to screening gateway • Requires reprogramming of state licensing system • Information retained in state licensing system

12. Program Information FAQ’s and Program information • Accessible on TSA public website at www.tsa.gov Help Desk call center: • Available for drivers in all states to check the status of their security assessments (877) 429-7746.