[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1680 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 1680

To authorize the Secretary of Homeland Security to regulate the sale of 
   ammonium nitrate to prevent and deter the acquisition of ammonium 
                         nitrate by terrorists.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 26, 2007

  Mr. Thompson of Mississippi (for himself, Mr. King of New York, Mr. 
  Langevin, Mr. McCaul of Texas, Mr. Etheridge, Mr. Dent, Ms. Loretta 
  Sanchez of California, and Ms. Jackson-Lee of Texas) introduced the 
    following bill; which was referred to the Committee on Homeland 
                                Security

_______________________________________________________________________

                                 A BILL


 
To authorize the Secretary of Homeland Security to regulate the sale of 
   ammonium nitrate to prevent and deter the acquisition of ammonium 
                         nitrate by terrorists.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Secure Handling of Ammonium Nitrate 
Act of 2007''.

SEC. 2. SECURE HANDLING OF AMMONIUM NITRATE.

    (a) In General.--Title VIII of the Homeland Security Act of 2002 (6 
U.S.C. 361 et seq.) is amended by adding at the end the following new 
subtitle:

           ``Subtitle J--Secure Handling of Ammonium Nitrate

``SEC. 899A. DEFINITIONS.

    ``In this subtitle, the following definitions apply:
            ``(1) The term `ammonium nitrate' means--
                    ``(A) solid ammonium nitrate that is chiefly the 
                ammonium salt of nitric acid and contains not less than 
                33 percent nitrogen by weight; and
                    ``(B) any mixture containing a percentage of 
                ammonium nitrate that is equal to or greater than the 
                percentage determined by the Secretary under section 
                899B(b).
            ``(2) The term `ammonium nitrate facility' means any site 
        where ammonium nitrate is produced or sold.
            ``(3) The term `ammonium nitrate purchaser' means any 
        person who buys and takes ownership of ammonium nitrate.

``SEC. 899B. REGULATION OF HANDLING AND PURCHASE OF AMMONIUM NITRATE.

    ``(a) In General.--The Secretary shall regulate the purchase and 
sale of ammonium nitrate in accordance with this subtitle to prevent 
the misappropriation or use of ammonium nitrate in an act of terrorism.
    ``(b) Ammonium Nitrate Mixtures.--The Secretary shall, through 
notice and comment and by no later than 90 days after the date of the 
enactment of this subtitle, establish a threshold percentage for 
ammonium nitrate in a substance. If a substance contains a percentage 
of ammonium nitrate that is equal to or greater than the percentage 
established by the Secretary, the substance shall be treated as 
ammonium nitrate for the purposes of this subtitle.
    ``(c) Registration of Owners of Ammonium Nitrate Facilities.--
            ``(1) Registration.--The Secretary shall establish a 
        process by which--
                    ``(A) any person who is the owner of an ammonium 
                nitrate facility is required to register with the 
                Department; and
                    ``(B) upon such registration, such person is issued 
                a registration number for purposes of this subtitle.
            ``(2)  Registration information.--The Secretary shall 
        require that each applicant for registration as the owner of an 
        ammonium nitrate facility must submit to the Secretary--
                    ``(A) the name, address, and telephone number of 
                each ammonium nitrate facility owned by the applicant;
                    ``(B) the name of the person designated by the 
                owner of the ammonium nitrate facility as the point of 
                contact of such facility, for purposes of this 
                subtitle;
                    ``(C) for each such facility, the amount of 
                ammonium nitrate that is sold or transferred during 
                each year; and
                    ``(D) such other information as the Secretary may 
                determine is appropriate.
    ``(d) Registration of Ammonium Nitrate Purchasers.--
            ``(1) Registration.--The Secretary shall establish a 
        process by which--
                    ``(A) any person who seeks to be an ammonium 
                nitrate purchaser is required to register with the 
                Department; and
                    ``(B) upon such registration, such person is issued 
                a registration number for purposes of this subtitle.
            ``(2)  Registration information.--The Secretary shall 
        require that each applicant for registration under this 
        subsection as a prospective ammonium nitrate purchaser must 
        submit to the Secretary the name, address, and telephone number 
        of the applicant.
    ``(e) Records.--
            ``(1) Maintenance of records.--The Secretary shall require 
        the owner of an ammonium nitrate facility engaged in selling or 
        transferring ammonium nitrate to--
                    ``(A) maintain a record of each sale or transfer of 
                ownership of ammonium nitrate, during the three-year 
                period beginning on the date of such sale or transfer; 
                and
                    ``(B) include in such record the information 
                described in paragraph (2).
            ``(2) Specific information required.--For each such sale or 
        transfer, the Secretary shall require that the owner of an 
        ammonium nitrate facility shall--
                    ``(A) record the name, address, telephone number, 
                and registration number issued under subsection (d) of 
                each person that takes ownership of ammonium nitrate 
                from the owner of the facility, in a manner prescribed 
                by the Secretary;
                    ``(B) if applicable, record the name, address, and 
                telephone number of each individual who takes 
                possession of the ammonium nitrate on behalf of the 
                person referred to in subparagraph (A), at the point of 
                sale;
                    ``(C) record the date and quantity of ammonium 
                nitrate sold or transferred; and
                    ``(D) verify the identity of the persons referred 
                to in subparagraphs (A) and (B), as applicable, in 
                accordance with a procedure established by the 
                Secretary.
            ``(3) Protection of information.--In maintaining records in 
        accordance with paragraph (1), the owner of an ammonium nitrate 
        facility shall take reasonable actions to ensure the protection 
        of the information included in such records.
    ``(f) Exemption for Explosive Purposes.--The Secretary may exempt 
from this subtitle a person producing, selling, or purchasing ammonium 
nitrate exclusively for use as an explosive material under a license 
issued under chapter 40 of title 18, United States Code.
    ``(g) Consultation.--In carrying out this section, the Secretary 
shall consult with the Secretary of Agriculture, States, and 
appropriate private sector entities, to ensure that the access of 
agricultural producers to ammonium nitrate is not unduly burdened.
    ``(h) Data Confidentiality.--
            ``(1) In general.--Notwithstanding section 552 of title 5, 
        United States Code, or the USA PATRIOT ACT (Public Law 107-56; 
        115 Stat. 272), and except as provided in paragraph (2), the 
        Secretary may not disclose to any person any information 
        obtained under this subtitle.
            ``(2) Exception.--The Secretary may disclose any 
        information obtained by the Secretary under this subtitle to an 
        officer or employee of the United States, or a person that has 
        entered into a contract with the United States, who has a need 
        to know the information to perform the duties of the officer, 
        employee, or person, or to a State agency pursuant to section 
        899D, under appropriate arrangements to ensure the protection 
        of the information.

``SEC. 899C. INSPECTION AND AUDITING OF RECORDS.

    ``The Secretary shall establish a process for the periodic 
inspection and auditing of the records maintained by owners of ammonium 
nitrate facilities for the purpose of monitoring compliance with such 
section or for the purpose of deterring or preventing the 
misappropriation or use of ammonium nitrate in an act of terrorism.

``SEC. 899D. ADMINISTRATIVE PROVISIONS.

    ``(a) Cooperative Agreements.--The Secretary--
            ``(1) may enter into a cooperative agreement with the 
        Secretary of Agriculture, or the head of any State department 
        of agriculture or its designee involved in agricultural 
        regulation, in consultation with the State agency responsible 
        for homeland security, to carry out the provisions of this 
        subtitle; and
            ``(2) wherever possible, shall seek to cooperate with State 
        agencies or their designees that oversee ammonium nitrate 
        facility operations when seeking cooperative agreements to 
        implement the registration and enforcement provisions of this 
        subtitle.
    ``(b) Delegation.--
            ``(1) Authority.--The Secretary may delegate to a State the 
        authority to assist the Secretary in the administration and 
        enforcement of this subtitle.
            ``(2) Delegation required.--At the request of a Governor of 
        a State, the Secretary shall delegate to the State the 
        authority to carry out functions under sections 899B and 899C, 
        if the Secretary determines that the State is capable of 
        satisfactorily carrying out such functions.
            ``(3) Funding.--Subject to the availability of 
        appropriations, if the Secretary enters into an agreement with 
        a State under this subsection to delegate functions to the 
        State, the Secretary shall provide to the State sufficient 
        funds to carry out the delegated functions.
    ``(c) Provision of Guidance and Notification Materials to Ammonium 
Nitrate Facilities.--
            ``(1) Guidance.--The Secretary shall make available to each 
        owner of an ammonium nitrate facility registered under section 
        899B(c)(1) guidance on--
                    ``(A) the identification of suspicious ammonium 
                nitrate purchases or attempted purchases;
                    ``(B) the appropriate course of action to be taken 
                by the ammonium nitrate facility owner with respect to 
                such a purchase or attempted purchase, including--
                            ``(i) exercising the right of the owner of 
                        the ammonium nitrate facility to decline sale 
                        of ammonium nitrate; and
                            ``(ii) notifying appropriate law 
                        enforcement entities; and
                    ``(C) any such additional subjects as the Secretary 
                determines are appropriate to prevent the 
                misappropriation or use of ammonium nitrate in an act 
                of terrorism.
            ``(2) Use of materials and programs.--In providing guidance 
        under this subsection, the Secretary shall, to the extent 
        practicable, leverage any relevant materials and programs.
            ``(3) Notification materials.--
                    ``(A) In general.--The Secretary shall make 
                available materials suitable for posting at ammonium 
                nitrate facilities where ammonium nitrate is sold.
                    ``(B) Design of materials.--Such materials shall be 
                designed to notify prospective ammonium nitrate 
                purchasers of--
                            ``(i) the record-keeping requirements under 
                        section 899B; and
                            ``(ii) the penalties for violating such 
                        requirements.

``SEC. 899E. THEFT REPORTING REQUIREMENT.

    ``Any person who is required to comply with section 899B(e) who has 
knowledge of the theft or unexplained loss of ammonium nitrate shall 
report such theft or loss to the appropriate Federal law enforcement 
authorities within one calendar day of the date on which the person 
becomes aware of such theft or loss.

``SEC. 899F. PROHIBITIONS AND PENALTY.

    ``(a) Prohibitions.--No person shall--
            ``(1) buy and take possession of ammonium nitrate without a 
        registration number required under subsection (c) or (d) of 
        section 899B;
            ``(2) own or operate an ammonium nitrate facility without a 
        registration number required under section 899B(c); or
            ``(3) fail to comply with any requirement or violate any 
        other prohibition under this subtitle.
    ``(b) In General.--A person that violates this subtitle may be 
assessed a civil penalty by the Secretary of not more than $50,000 per 
violation.
    ``(c) Penalty Considerations.--In determining the amount of a civil 
penalty under this section, the Secretary shall consider--
            ``(1) the nature and circumstances of the violation;
            ``(2) with respect to the person who commits the violation, 
        any history of prior violations, the ability to pay the 
        penalty, and any effect the penalty is likely to have on the 
        ability of such person to do business; and
            ``(3) any other matter that the Secretary determines that 
        justice requires.
    ``(d) Notice and Opportunity for a Hearing.--No civil penalty may 
be assessed under this subtitle unless the person liable for the 
penalty has been given notice and an opportunity for a hearing on the 
violation for which the penalty is to be assessed in the county, 
parish, or incorporated city of residence of that person.
    ``(e) Delay in Application of Prohibition on Owners of 
Facilities.--Subsection (a)(2) shall apply beginning 6 months after the 
issuance by the Secretary of a final rule implementing this subtitle.

``SEC. 899G. PREEMPTION OF OTHER LAWS.

    ``(a) Other Federal Regulations.--Nothing in this subtitle affects 
any regulation issued by any agency other than an agency of the 
Department.
    ``(b) State Law.--This subtitle preempts the laws of any State to 
the extent that such laws are inconsistent with this subtitle, except 
that this subtitle shall not preempt any State law that provides 
additional protection against the acquisition of ammonium nitrate by 
terrorists or the use of ammonium nitrate in explosives in acts of 
terrorism, as determined by the Secretary.

``SEC. 899H. DEADLINES FOR REGULATIONS.

    ``The Secretary--
            ``(1) shall issue a proposed rule implementing this 
        subtitle within six months after the date of the enactment of 
        this subtitle; and
            ``(2) issue a final rule implementing this subtitle within 
        one year after such date of enactment.

``SEC. 899I. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the Secretary such 
sums as may be necessary to carry out this subtitle for fiscal years 
2007 through 2011.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by adding at the end the following new items:

           ``Subtitle J--Secure Handling of Ammonium Nitrate

``Sec. 899A. Definitions.
``Sec. 899B. Regulation of handling and purchase of ammonium nitrate.
``Sec. 899C. Inspection and auditing of records.
``Sec. 899D. Administrative provisions.
``Sec. 899E. Theft reporting requirement.
``Sec. 899F. Prohibitions and penalty.
``Sec. 899G. Preemption of other laws.
``Sec. 899H. Deadlines for regulations.
``Sec. 899I. Authorization of appropriations.''.
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