[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1463 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1463

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, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 23, 2007

   Mr. Pryor (for himself, Mr. Cochran, Mr. Craig, Mr. Roberts, Mr. 
 Schumer, and Mr. Chambliss) introduced the following bill; which was 
   read twice and referred to the Committee on Homeland Security and 
                          Governmental Affairs

_______________________________________________________________________

                                 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, and for other purposes.

    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:

           ``Subtitle J--Secure Handling of Ammonium Nitrate

``SEC. 899A. DEFINITIONS.

    ``In this subtitle:
            ``(1) Ammonium nitrate.--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) Ammonium nitrate facility.--The term `ammonium 
        nitrate facility' means any entity that produces, sells or 
        otherwise transfers ownership of, or provides application 
        services for ammonium nitrate.
            ``(3) Ammonium nitrate purchaser.--The term `ammonium 
        nitrate purchaser' means any person who buys and takes 
        possession of ammonium nitrate from an ammonium nitrate 
        facility.

``SEC. 899B. REGULATION OF THE SALE AND TRANSFER OF AMMONIUM NITRATE.

    ``(a) In General.--The Secretary shall regulate the sale and 
transfer of ammonium nitrate by an ammonium nitrate facility in 
accordance with this subtitle to prevent the misappropriation or use of 
ammonium nitrate in an act of terrorism.
    ``(b) Ammonium Nitrate Mixtures.--Not later than 90 days after the 
date of the enactment of this subtitle, the Secretary, in consultation 
with the heads of appropriate Federal departments and agencies 
(including the Secretary of Agriculture), shall, after notice and an 
opportunity for comment, establish a threshold percentage for ammonium 
nitrate in a substance.
    ``(c) Registration of Owners of Ammonium Nitrate Facilities.--
            ``(1) Registration.--The Secretary shall establish a 
        process by which any person that--
                    ``(A) owns an ammonium nitrate facility is required 
                to register with the Department; and
                    ``(B) registers under subparagraph (A) is issued a 
                registration number for purposes of this subtitle.
            ``(2)  Registration information.--Any person applying to 
        register under paragraph (1) shall submit to the Secretary--
                    ``(A) the name, address, and telephone number of 
                each ammonium nitrate facility owned by that person;
                    ``(B) the name of the person designated by that 
                person as the point of contact for each such facility, 
                for purposes of this subtitle; and
                    ``(C) 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 any person that--
                    ``(A) intends to be an ammonium nitrate purchaser 
                is required to register with the Department; and
                    ``(B) registers under subparagraph (A) is issued a 
                registration number for purposes of this subtitle.
            ``(2)  Registration information.--Any person applying to 
        register under paragraph (1) as an ammonium nitrate purchaser 
        shall submit to the Secretary--
                    ``(A) the name, address, and telephone number of 
                the applicant; and
                    ``(B) the intended use of ammonium nitrate to be 
                purchased by the applicant.
    ``(e) Records.--
            ``(1) Maintenance of records.--The owner of an ammonium 
        nitrate facility shall--
                    ``(A) maintain a record of each sale or transfer of 
                ammonium nitrate, during the two-year period beginning 
                on the date of that sale or transfer; and
                    ``(B) include in such record the information 
                described in paragraph (2).
            ``(2) Specific information required.--For each sale or 
        transfer of ammonium nitrate, the owner of an ammonium nitrate 
        facility shall--
                    ``(A) record the name, address, telephone number, 
                and registration number issued under subsection (c) or 
                (d) of each person that takes possession of ammonium 
                nitrate, 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 described 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 described 
                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 shall 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--
                    ``(A) 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
                    ``(B) to a State agency under section 899D, under 
                appropriate arrangements to ensure the protection of 
                the information.
    ``(i) Registration Procedures and Check of Terrorist Screening 
Database.--
            ``(1) Registration procedures.--
                    ``(A) Generally.--The Secretary shall establish 
                procedures to efficiently receive applications for 
                registration numbers under this subtitle, conduct the 
                checks required under paragraph (2), and promptly issue 
                or deny a registration number.
                    ``(B) Initial six-month registration period.--The 
                Secretary shall take steps to maximize the number of 
                registration applications that are submitted and 
                processed during the six-month period described in 
                section 899F(e).
            ``(2) Check of terrorist screening database.--
                    ``(A) Check required.--The Secretary shall conduct 
                a check of appropriate identifying information of any 
                person seeking to register with the Department under 
                subsection (c) or (d) against identifying information 
                that appears in the terrorist screening database of the 
                Department.
                    ``(B) Authority to deny registration number.--If 
                the identifying information of a person seeking to 
                register with the Department under subsection (c) or 
                (d) appears in the terrorist screening database of the 
                Department, the Secretary may deny issuance of a 
                registration number under this subtitle.
            ``(3) Expedited review of applications.--
                    ``(A) In general.--Following the six-month period 
                described in section 899F(e), the Secretary shall, to 
                the extent practicable, issue or deny registration 
                numbers under this subtitle not later than 72 hours 
                after the time the Secretary receives a complete 
                registration application, unless the Secretary 
                determines, in the interest of national security, that 
                additional time is necessary to review an application.
                    ``(B) Notice of application status.--In all cases, 
                the Secretary shall notify a person seeking to register 
                with the Department under subsection (c) or (d) of the 
                status of the application of that person not later than 
                72 hours after the time the Secretary receives a 
                complete registration application.
            ``(4) Expedited appeals process.--
                    ``(A) Requirement.--
                            ``(i) Appeals process.--The Secretary shall 
                        establish an expedited appeals process for 
                        persons denied a registration number under this 
                        subtitle.
                            ``(ii) Time period for resolution.--The 
                        Secretary shall, to the extent practicable, 
                        resolve appeals not later than 72 hours after 
                        receiving a complete request for appeal unless 
                        the Secretary determines, in the interest of 
                        national security, that additional time is 
                        necessary to resolve an appeal.
                    ``(B) Consultation.--The Secretary, in developing 
                the appeals process under subparagraph (A), shall 
                consult with appropriate stakeholders.
                    ``(C) Guidance.--The Secretary shall provide 
                guidance regarding the procedures and information 
                required for an appeal under subparagraph (A) to any 
                person denied a registration number under this 
                subtitle.
            ``(5) Restrictions on use and maintenance of information.--
                    ``(A) In general.--Any information constituting 
                grounds for denial of a registration number under this 
                section shall be maintained confidentially by the 
                Secretary and may be used only for making 
                determinations under this section.
                    ``(B) Sharing of information.--Notwithstanding any 
                other provision of this subtitle, the Secretary may 
                share any such information with Federal, State, local, 
                and tribal law enforcement agencies, as appropriate.
            ``(6) Registration information.--
                    ``(A) Authority to require information.--The 
                Secretary may require a person applying for a 
                registration number under this subtitle to submit such 
                information as may be necessary to carry out the 
                requirements of this section.
                    ``(B) Requirement to update information.--The 
                Secretary may require persons issued a registration 
                under this subtitle to update registration information 
                submitted to the Secretary under this subtitle, as 
                appropriate.
            ``(7) Re-checks against terrorist screening database.--
                    ``(A) Re-checks.--The Secretary shall, as 
                appropriate, recheck persons provided a registration 
                number pursuant to this subtitle against the terrorist 
                screening database of the Department, and may revoke 
                such registration number if the Secretary determines 
                such person may pose a threat to national security.
                    ``(B) Notice of revocation.--The Secretary shall, 
                as appropriate, provide prior notice to a person whose 
                registration number is revoked under this section and 
                such person shall have an opportunity to appeal, as 
                provided in paragraph (4).

``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 this 
subtitle 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 that 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 delegates functions to a State 
        under this subsection, the Secretary shall provide to that 
        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 transfers or attempted purchases 
                or transfers;
                    ``(B) the appropriate course of action to be taken 
                by the ammonium nitrate facility owner with respect to 
                such a purchase or transfer or attempted purchase or 
                transfer, 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) additional subjects determined appropriate by 
                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 locations 
                where ammonium nitrate is sold.
                    ``(B) Design of materials.--Materials made 
                available under subparagraph (A) 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 not later than 1 calendar day of the date on which the 
person becomes aware of such theft or loss. Upon receipt of such 
report, the relevant Federal authorities shall inform State, local, and 
tribal law enforcement entities, as appropriate.

``SEC. 899F. PROHIBITIONS AND PENALTY.

    ``(a) Prohibitions.--
            ``(1) Taking possession.--No person shall take possession 
        of ammonium nitrate from an ammonium nitrate facility unless 
        such person is registered under subsection (c) or (d) of 
        section 899B, or is an agent of a person registered under 
        subsection (c) or (d) of that section.
            ``(2) Transferring possession.--An owner of an ammonium 
        nitrate facility shall not transfer possession of ammonium 
        nitrate from the ammonium nitrate facility to any person who is 
        not registered under subsection (c) or (d) of section 899B, or 
        is not an agent of a person registered under subsection (c) or 
        (d) of that section.
            ``(3) Other prohibitions.--No person shall--
                    ``(A) buy and take possession of ammonium nitrate 
                without a registration number required under subsection 
                (c) or (d) of section 899B;
                    ``(B) own or operate an ammonium nitrate facility 
                without a registration number required under section 
                899B(c); or
                    ``(C) fail to comply with any requirement or 
                violate any other prohibition under this subtitle.
    ``(b) Civil Penalty.--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.--Paragraphs (1) and (2) 
of subsection (a) shall apply on and after the date that is 6 months 
after the date that the Secretary issues of a final rule implementing 
this subtitle.

``SEC. 899G. PROTECTION FROM CIVIL LIABILITY.

    ``(a) In General.--Notwithstanding any other provision of law, an 
owner of an ammonium nitrate facility that in good faith refuses to 
sell or transfer ammonium nitrate to any person, or that in good faith 
discloses to the Department or to appropriate law enforcement 
authorities an actual or attempted purchase or transfer of ammonium 
nitrate, based upon a reasonable belief that the person seeking 
purchase or transfer of ammonium nitrate may use the ammonium nitrate 
to create an explosive device to be employed in an act of terrorism (as 
defined in section 3077 of title 18, United States Code), or to use 
ammonium nitrate for any other unlawful purpose, shall not be liable in 
any civil action relating to that refusal to sell ammonium nitrate or 
that disclosure.
    ``(b) Reasonable Belief.--A reasonable belief that a person may use 
ammonium nitrate to create an explosive device to be employed in an act 
of terrorism under subsection (a) may not solely be based on the race, 
sex, national origin, creed, religion, status as a veteran, or status 
as a member of the Armed Forces of the United States of that person.

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

    ``(a) Other Federal Regulations.--Except as provided in section 
899G, nothing in this subtitle affects any regulation issued by any 
agency other than an agency of the Department.
    ``(b) State Law.--Subject to section 899G, 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 or for other illicit purposes, as 
determined by the Secretary.

``SEC. 899I. DEADLINES FOR REGULATIONS.

    ``The Secretary--
            ``(1) shall issue a proposed rule implementing this 
        subtitle not later than 6 months after the date of the 
        enactment of this subtitle; and
            ``(2) issue a final rule implementing this subtitle not 
        later than 1 year after such date of enactment.

``SEC. 899J. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to the Secretary such 
sums as are necessary to carry out this subtitle for each of fiscal 
years 2007 through 2011.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
such Act is amended by inserting after the item relating to section 899 
the following:

           ``Subtitle J--Secure Handling of Ammonium Nitrate

``Sec. 899A. Definitions.
``Sec. 899B. Regulation of the sale and transfer 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. Protection from civil liability.
``Sec. 899H. Preemption of other laws.
``Sec. 899I. Deadlines for regulations.
``Sec. 899J. Authorization of appropriations.''.
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