[House Report 107-658]
[From the U.S. Government Publishing Office]



107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-658
======================================================================
 
                 ANTI-TERRORISM EXPLOSIVES ACT OF 2002

                                _______
                                

 September 17, 2002.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Sensenbrenner, from the Committee on the Judiciary, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 4864]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 4864) to combat terrorism and defend the Nation 
against terrorist acts, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
The Amendment....................................................     1
Purpose and Summary..............................................     4
Background and Need for the Legislation..........................     5
Hearings.........................................................     6
Committee Consideration..........................................     6
Vote of the Committee............................................     6
Committee Oversight Findings.....................................     6
Performance Goals and Objectives.................................     7
New Budget Authority and Tax Expenditures........................     7
Congressional Budget Office Cost Estimate........................     7
Constitutional Authority Statement...............................    11
Section-by-Section Analysis and Discussion.......................    11
Changes in Existing Law Made by the Bill, as Reported............    14
Markup Transcript................................................    20

    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 ``Anti-Terrorism Explosives Act of 
2002''.

SEC. 2. PERMITS FOR PURCHASERS OF EXPLOSIVES.

    (a) Definitions.--Section 841(j) of title 18, United States Code, 
is amended to read as follows:
            ``(j) `Permittee' means any user of explosives for a lawful 
        purpose, who has obtained a user permit or a limited permit 
        under this chapter.''.
    (b) Permits for Purchase of Explosives.--Section 842 of such title 
is amended--
            (1) in subsection (a)--
                    (A) in paragraph (2), by striking ``and''; and
                    (B) by striking paragraph (3) and inserting the 
                following:
            ``(3) other than a licensee or permittee, knowingly--
                    ``(A) to transport, ship, cause to be transported, 
                or receive any explosive materials; or
                    ``(B) to distribute explosive materials to any 
                person other than a licensee or permittee; or
            ``(4) who is a holder of a limited permit--
                    ``(A) to transport, ship, cause to be transported, 
                or receive in interstate or foreign commerce any 
                explosive materials; or
                    ``(B) to receive explosive materials from a 
                licensee or permittee whose premises are located in the 
                State of residence of the holder, except that the 
                holder of a limited permit may so receive explosive 
                materials on 4 or fewer occasions pursuant to 
                regulations prescribed by the Secretary.''; and
            (2) by striking subsection (b) and inserting the following:
    ``(b) It shall be unlawful for any licensee or permittee knowingly 
to distribute any explosive materials to any person other than--
            ``(1) a licensee;
            ``(2) a holder of a user permit; or
            ``(3) a holder of a limited permit who is a resident of the 
        State where distribution is made and in which the transferor's 
        premises are located.''.
    (c) Licenses and User Permits.--Section 843(a) of such title is 
amended--
            (1) in the 1st sentence--
                    (A) by inserting ``or limited permit'' after ``user 
                permit''; and
                    (B) by inserting ``, including the names of and 
                appropriate identifying information regarding all 
                employees who will be authorized by the employer to 
                possess explosive materials, as well as fingerprints 
                and a photograph of each responsible person with 
                respect to the applicant. In this section, the term 
                `responsible person' means, with respect to an 
                applicant, an individual who has the power to direct 
                the management and policies of the applicant pertaining 
                to explosive materials'' before the period; and
            (2) by striking the 3rd sentence and inserting ``Each 
        license or user permit shall be valid for no longer than 3 
        years from the date of issuance, and each limited permit shall 
        be valid for no longer than 1 year from the date of issuance. 
        Each license or permit shall be renewable upon the same 
        conditions and subject to the same restrictions as the original 
        license or permit (except that, in the case of the renewal of a 
        limited permit, the verification requirement of subsection 
        (b)(5) may be satisfied by inspection or such other means as 
        the Secretary deems appropriate) and upon payment of a renewal 
        fee not to exceed \1/2\ of the original fee.''.
    (d) Criteria for Approving Licenses and Permits.--Section 843(b) of 
such title is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1) the applicant (or, if the applicant is a corporation, 
        partnership, or association, eachresponsible person with 
respect to the applicant) is not a person who is prohibited from 
receiving, distributing, transporting, or possessing explosive 
materials under subsection (d) or (i) of section 842;'';
            (2) by redesignating paragraphs (2) through (5) as 
        paragraphs (3) through (6), respectively, and inserting after 
        paragraph (1) the following:
            ``(2) none of the employees who will be authorized by the 
        applicant to possess explosive materials in the course of their 
        employment with the applicant is a person whose possession of 
        explosives would be unlawful under section 842(i);'';
            (3) in paragraph (5) (as so redesignated)--
                    (A) by inserting ``the Secretary has verified by 
                inspection that'' before ``the applicant''; and
                    (B) by striking ``and'' at the end;
            (4) by striking the period at the end of paragraph (6) (as 
        so redesignated) and inserting ``; and''; and
            (5) by adding at the end the following:
            ``(7) in the case of a limited permit, the applicant has 
        certified in writing that the applicant will not receive 
        explosive materials on more than 4 different occasions during 
        any 12-month period in which a limited permit issued to the 
        applicant is in effect.''.
    (e) Deadline for Approval or Denial of Application.--Section 843(c) 
of such title is amended by striking ``a period of forty-five days 
beginning on the date such'' and inserting ``90 days after the''.
    (f) Inspection Authority.--Section 843(f) of such title is 
amended--
            (1) in the 1st sentence--
                    (A) by striking ``permittees'' and inserting 
                ``holders of user permits''; and
                    (B) by inserting ``licensees and permittees'' 
                before ``shall submit''; and
            (2) in the 2nd sentence, by striking ``permittee'' the 
        first place it appears and inserting ``holder of a user 
        permit''.
    (g) Posting of Permits.--Section 843(g) of such title is amended by 
inserting ``user'' before ``permits''.
    (h) Background Checks; Clearances.--Section 843 of such title is 
amended by adding at the end the following:
    ``(h)(1) If the Secretary receives from an employer the name and 
other identifying information with respect to a responsible person or 
an employee who will be authorized by the employer to possess explosive 
materials in the course of employment with the employer, the Secretary 
shall determine whether possession of explosives by the responsible 
person or the employee, as the case may be, would be unlawful under 
section 842(i). In making the determination, the Secretary may take 
into account a letter or document issued under paragraph (2) of this 
subsection.
    ``(2)(A) If the Secretary determines that possession of explosives 
by the responsible person or the employee would not be unlawful under 
section 842(i), the Secretary shall notify the employer in writing or 
electronically of the determination and issue to the responsible person 
or the employee, as the case may be, a letter of clearance which 
confirms the determination.
    ``(B) If the Secretary determines that possession of explosives by 
the responsible person or the employee would be unlawful under section 
842(i), the Secretary shall notify the employer in writing or 
electronically of the determination and issue to the responsible person 
or the employee, as the case may be, a document which confirms the 
determination, explains the grounds for the determination, provides 
information on how the disability may be relieved, and explains how the 
determination may be appealed.''.
    (i) Effective Date.--The amendments made by this section shall take 
effect 180 days after the date of enactment of this Act.
    (j) Electronic Records.--Not later than one year after the 
effective date of this Act, the Secretary of the Treasury shall 
maintain an electronic record of each license, user permit, or limit 
permit issued or renewed under section 843 of title 18, United States 
Code, on or after one year after the effective date of this Act.

SEC. 3. PERSONS PROHIBITED FROM RECEIVING OR POSSESSING EXPLOSIVE 
                    MATERIALS.

    (a) Distribution of Explosive Materials.--Section 842(d) of title 
18, United States Code, is amended--
            (1) by striking ``or'' at the end of paragraph (5);
            (2) by striking the period at the end of paragraph (6) and 
        inserting ``or has been committed to a mental institution;''; 
        and
            (3) by adding at the end the following:
            ``(7) is an alien, other than a lawful permanent resident 
        alien (as defined in section 101(a)(20) of the Immigration and 
        Nationality Act) or an alien described in subsection (q)(2) of 
        this section;
            ``(8) has been discharged from the Armed Forces under 
        dishonorable conditions; or
            ``(9) having been a citizen of the United States, has 
        renounced his citizenship.''.
    (b) Possession of Explosives.--Section 842(i) of such title is 
amended--
            (1) by striking ``or'' at the end of paragraph (3); and
            (2) by inserting after paragraph (4) the following:
            ``(5) who, is an alien, other than a lawful permanent 
        resident alien (as defined in section 101(a)(20) of the 
        Immigration and Nationality Act) or an alien described in 
        subsection (q)(2);
            ``(6) who has been discharged from the Armed Forces under 
        dishonorable conditions; or
            ``(7) who, having been a citizen of the United States, has 
        renounced his citizenship;''.
    (c) Provisions Relating to Legal Aliens.--Section 842 of such title 
is amended by adding at the end the following:
    ``(q) Provisions Relating to Legal Aliens.--
            ``(1) Definition.--In this subsection, the term `alien' has 
        the same meaning as in section 101(a)(3) of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)(3)).
            ``(2) Exceptions.--An alien is described in this paragraph 
        if the alien--
                    ``(A) is--
                            ``(i) in lawful nonimmigrant status;
                            ``(ii) a refugee admitted under section 207 
                        of the Immigration and Nationality Act (8 
                        U.S.C. 1157); or
                            ``(iii) in asylum status under section 208 
                        of the Immigration and Nationality Act (8 
                        U.S.C. 1158); and
                    ``(B) is--
                            ``(i) a law enforcement officer of a 
                        foreign country designated in writing by the 
                        Attorney General as a country covered by this 
                        subparagraph, and is entering the United States 
                        on official law enforcement business;
                            ``(ii) a person having the authority to 
                        direct or cause the direction of the management 
                        and policies of a corporation, partnership, or 
                        association licensed under section 843(a), and 
                        shipping, transporting, possessing or receiving 
                        explosive materials relates to the authority; 
                        or
                            ``(iii) a member of the armed forces of a 
                        foreign country that is a member of the North 
                        Atlantic Treaty Organization, Australia, New 
                        Zealand, Japan, Republic of Korea, or other 
                        foreign country designated in writing by the 
                        Attorney General, after consultation with the 
                        Secretary of Defense, as a country covered by 
                        this subparagraph (whether or not admitted in a 
                        non-immigrant status), who is present in the 
                        United States under military orders for 
                        training or other authorized purpose, and the 
                        shipping, transporting, possessing, or 
                        receiving explosive materials is in furtherance 
                        of the military purpose;
                            ``(iv) lawfully present in the United 
                        States in cooperation with the Director of 
                        Central Intelligence, and the shipment, 
                        transportation, receipt, or possession of the 
                        explosive materials is in furtherance of such 
                        cooperation.''.
    (d) Expansion of Authority to Provide Relief From Disabilities.--
Section 845(b) of such title is amended--
            (1) by striking ``had been indicted for or convicted of a 
        crime punishable by imprisonment for a term exceeding one 
        year'' and inserting ``is prohibited from shipping, 
        transporting, receiving, or possessing any explosive'';
            (2) by striking ``of such indictment or conviction'' and 
        inserting ``of the applicable provision of section 842(i)'';
            (3) by striking ``the indictment or conviction'' and 
        inserting ``the applicability of such provision'';
            (4) by striking ``of indictment or conviction'' and 
        inserting ``of such applicability''; and
            (5) by striking ``by such indictment or conviction'' and 
        inserting ``by such applicability''.

SEC. 4. REQUIREMENT TO PROVIDE SAMPLES OF EXPLOSIVE MATERIALS AND 
                    AMMONIUM NITRATE.

    Section 843 of title 18, United States Code, is further amended by 
adding at the end the following:
    ``(i) A person who manufactures or imports explosive materials or 
ammonium nitrate shall, as required by letter issued by the Secretary, 
furnish samples of the explosive materials or ammonium nitrate, 
information on chemical composition of the explosive materials or 
ammonium nitrate, and any other information that the Secretary 
determines is relevant to the identification of the explosive materials 
or to identification of the ammonium nitrate. The Secretary shall, by 
regulation, provide for the reimbursement of the fair market value of 
samples furnished pursuant to this subsection, as well as the 
reasonable costs of shipment.''.

SEC. 5. DESTRUCTION OF PROPERTY OF INSTITUTIONS RECEIVING FEDERAL 
                    FINANCIAL ASSISTANCE.

    Section 844(f)(1) of title 18, United States Code, is amended by 
inserting ``or any institution or organization receiving Federal 
financial assistance,'' before ``shall''.

                          Purpose and Summary

    H.R. 4864, the ``Anti-Terrorism Explosives Act of 2002,'' 
provides tighter security for explosive materials and increased 
security measures for purchasers and possessors of explosives 
by requiring all persons who wish to obtain explosives, even 
for limited use, to obtain a permit.
    The legislation would expand the list of persons who are 
prohibited from receiving explosive materials to make these 
laws conform with the list of persons restricted from 
possessing firearms. Additionally, the bill requires companies 
that apply for a permit to possess, use or transfer explosives 
to submit a list to the Bureau of Alcohol, Tobacco and Firearms 
(ATF) of all employees who have responsibility for, or will 
have possession of, explosive materials to verify that these 
individuals are not on the list of persons who are prohibited 
from purchasing or possessing explosives. Explosive 
manufacturers will also be required, under this legislation, to 
provide a sample of their explosives to facilitate the tracking 
of these materials for ATF. Finally, the bill would expand 
Federal jurisdiction over intentional fires or explosions 
occurring on Federal property to include institutions or 
organizations receiving Federal financial assistance.

                Background and Need for the Legislation

    Since September 11, 2001, our country has been on high 
alert. Americans have become accustomed to frequent 
notifications about possible terrorist threats and increased 
security throughout our society. Congress has passed 
legislation requiring background checks for airport workers, 
hazmat truck drivers, and researchers working with anthrax. 
These precautions are necessary to prevent certain types of 
terrorist attacks. However, there are additional precautions 
that have not been taken that would help to prevent threats 
from explosives. This legislation includes many of these 
precautions.
    In recent years, our country has seen an increase in 
terrorist activities. In 1993, terrorists detonated explosives 
at the World Trade Center. Terrorists detonated explosives in 
the Murrah Federal Building in Oklahoma City in 1995. This 
year, Richard Reid was arrested after trying to detonate a bomb 
in his shoe on an aircraft. The Attorney General has stated 
that the suicide bombings and car bombings could be the next 
line of attack by terrorists in the United States. On June 10, 
2002, the Attorney General announced that the FBI had uncovered 
a terrorist plot to detonate a ``dirty bomb''--a mixture of 
common explosives and radioactive materials in an United States 
metropolitan area.
    Currently, individuals seeking to purchase explosives in 
intrastate commerce are not required to obtain a permit. This 
legislation requires all persons purchasing explosives to 
obtain a permit from ATF. This will allow ATF to perform 
background checks on all applicants for permits and ensure 
proper handling and storage procedures will be used to prevent 
mishandling and misuse of explosives.
    This bill would add categories of persons to the list of 
persons prohibited from receiving or possessing explosive 
materials. The purpose of this expansion would be to try to 
minimize the risk of explosives being mishandled or misused by 
persons who may pose a particular security threat. The 
categories of persons prohibited from purchasing explosives is 
updated under this legislation to more closely reflect the list 
of persons prohibited from purchasing firearms. The bill 
includes expanded provisions for relief from disability to 
allow for appeal of all categories of prohibited persons.
    The bill seeks to achieve a balance between security 
measures, which are necessary to prevent access to explosives 
by certain individuals, and protection of privacy interests. 
Although an applicant company would receive notice that an 
individual employed by the company may be prohibited from 
possessing explosives, notification of the reasons that an 
individual is prohibited from possessing explosives would only 
be provided to that individual in an effort to protect privacy. 
Notice of rights to appeal and information regarding those 
rights would also be provided directly to the individual.
    This legislation also allows ATF to compile samples of 
explosive materials that are manufactured and imported by 
Federally licensed entities to give them the ability to quickly 
determine what explosive materials were used in an incident and 
track these materials.
    Current law makes it a crime to damage any Federally owned 
or leased property by intentional use of fire or explosives.\1\ 
Expanding the law to include institutions or organizations that 
receive Federal financial assistance would allow ATF to provide 
their expertise and provide the protection of Federal criminal 
laws to additional entities.
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    \1\ 18 U.S.C. Sec. 844 (2002)
---------------------------------------------------------------------------

                                Hearings

    The Subcommittee on Crime, Terrorism, and Homeland Security 
held a hearing on H.R. 4864, the ``Anti-Terrorism Explosives 
Act of 2002'' on June 11, 2002. Testimony was heard from three 
witnesses: The Honorable Kenneth Lawson, Assistant Secretary of 
Enforcement, U.S. Department of the Treasury; Bradley A. 
Buckles, Director, Bureau of Alcohol, Tobacco and Firearms; and 
J. Christopher Ronay, President, Institute of Makers of 
Explosives.

                        Committee Consideration

    On June 13, 2002, the Subcommittee on Crime, Terrorism, and 
Homeland Security met in open session and ordered favorably 
reported the bill H.R. 4864, by voice vote, a quorum being 
present. On June 18, 2002, the Committee on the Judiciary met 
in open session and ordered favorably reported the bill, H.R. 
4864, as amended, by voice vote, a quorum being present.

                         Vote of the Committee

    There were no recorded votes on this legislation.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee reports that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

                    Performance Goals and Objectives

    H.R. 4864, the ``Anti-Terrorism Explosives Act of 2002'' 
does not authorize funding. Therefore, clause 3(c) of rule XIII 
of the Rules of the House of Representatives is inapplicable.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of House rule XIII is inapplicable because 
this legislation does not provide new budgetary authority or 
increased tax expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, H.R. 4864, the following estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, August 9, 2002.
Hon. F. James Sensenbrenner, Jr., Chairman,
Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4864, the Anti-
Terrorism Explosives Act of 2002.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Mark 
Grabowicz (for Federal costs), who can be reached at 226-2860, 
and Jean Talarico (for the private-sector impact), who can be 
reached at 226-2940.
            Sincerely,
                                  Dan L. Crippen, Director.

Enclosure

cc:
        Honorable John Conyers, Jr.
        Ranking Member
H.R. 4864--Anti-Terrorism Explosives Act of 2002.

                                SUMMARY

    H.R. 4864 would require all purchasers of explosives to 
obtain permits from the Bureau of Alcohol, Tobacco, and 
Firearms (ATF) and would direct that agency to perform 
background checks on persons who work with explosives. The bill 
also would require manufacturers and importers of explosive 
materials or ammonium nitrate to furnish samples and other 
information to the ATF. Finally, H.R. 4864 would expand the 
current prohibitions on possession of explosives and would 
establish new Federal crimes for offenses relating to misuse of 
explosives.
    CBO estimates that implementing H.R. 4864 would cost about 
$190 million over the 2003-2007 period for the ATF to 
administer the bill's provisions, assuming appropriation of the 
necessary amounts. We estimate that enacting the bill would 
increase receipts by about $2 million over the 2003-2007 period 
and would have an insignificant effect on direct spending. 
Because the bill would affect direct spending and receipts, 
pay-as-you-go procedures would apply.
    H.R. 4864 contains no intergovernmental mandates as defined 
in the Unfunded Mandates Reform Act (UMRA) and would impose no 
costs on State, local, or tribal governments.
    H.R. 4864 would impose private-sector mandates, as defined 
in UMRA, on manufacturers, distributors, importers, and 
purchasers of explosive materials. CBO estimates that the costs 
of those mandates would fall well below the annual threshold 
specified in UMRA ($115 million in 2002, adjusted annually for 
inflation).

                ESTIMATED COST TO THE FEDERAL GOVERNMENT

    The estimated budgetary impact of H.R. 4864 is shown in the 
following table. The costs of this legislation fall within 
budget function 750 (administration of justice).
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                           BASIS OF ESTIMATE

    CBO estimates that implementing H.R 4864 would increase 
costs for the ATF by about $190 million over the 2003-2007 
period. CBO assumes that the necessary amounts will be 
appropriated by the start of each fiscal year. In addition, the 
bill also would increase revenues by about $2 million over the 
2003-2007 period and would have a negligible effect on direct 
spending.
Spending Subject to Appropriation
    Under current law, residents of a State may purchase 
explosives from a business located in that State or in an 
adjacent State without a Federal permit. H.R. 4864 would 
require those purchasers of explosives to obtain a permit from 
the ATF. The agency expects 25,000 to 40,000 persons or firms 
to need such ``limited'' permits each year. Under the bill's 
provisions, the ATF would have to conduct a field inspection of 
each applicant. In addition, H.R. 4864 would direct the ATF to 
conduct background checks on all persons who handle explosives. 
The ATF expects that roughly 100,000 checks would be required 
each year under the bill.
    CBO expects that the ATF would need to hire a significant 
number of new employees to carry out the bill's provisions, 
mostly field inspectors, but also attorneys, chemists, and 
other administrative and support personnel. Based on 
information from the ATF about the level of effort required for 
field inspections and background checks, CBO estimates that 
implementing H.R. 4864 would cost about $40 million annually to 
hire an additional 350 to 400 persons. We expect that those new 
positions would be fully staffed by fiscal year 2004.
    H.R. 4864 also would require manufacturers and importers of 
explosive materials or ammonium nitrate to furnish samples and 
other information to the ATF. The agency would have to provide 
reimbursement of the fair market value of samples plus shipping 
costs. Based on information from the ATF and from trade 
associations for explosives manufacturers, CBO does not expect 
those costs to be significant because of the small amount of 
material involved.
Direct Spending and Revenues
    The ATF expects to charge a fee of $25 for each limited 
permit it issues, plus a $12.50 renewal fee each year. Because 
fees that the agency currently charges to issue licenses to 
manufacturers and dealers of explosives are recorded on the 
budget as revenues, CBO expects these collections would also be 
considered revenues. Assuming there are about 30,000 applicants 
for these permits, CBO estimates that enacting H.R. 4864 would 
increase revenues by about $800,000 in fiscal year 2003 and by 
about $400,000 in each year thereafter.
    Enacting H.R. 4864 also could increase collections of 
criminal fines for violations of the bill's provisions relating 
to use of explosives. CBO estimates that any additional 
collections would not be significant because of the small 
number of additional cases likely to be affected. Criminal 
fines are recorded as receipts and deposited in the Crime 
Victims Fund, then later spent.

                      PAY-AS-YOU-GO CONSIDERATIONS

    The Balanced Budget and Emergency Deficit Control Act 
specifies procedures for legislation affecting direct spending 
and receipts. Pay-as-you-go procedures would apply to H.R. 4864 
because the bill would affect direct spending and receipts. 
Except for the estimated receipts of nearly $1 million in 2003, 
annual effects on direct spending and revenues would be less 
than $500,000 a year, as shown in the following table.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        ESTIMATED IMPACT ON STATE, LOCAL, AND TRIBAL GOVERNMENTS

    H.R. 4864 contains no intergovernmental mandates as defined 
in UMRA and would impose no costs on State, local, or tribal 
governments.

                 ESTIMATED IMPACT ON THE PRIVATE SECTOR

    H.R. 4864 would impose private-sector mandates as defined 
in UMRA on manufacturers, distributors, importers, and 
purchasers of explosive materials. CBO estimates that the costs 
of those mandates would fall well below the annual threshold 
specified in UMRA ($115 million in 2002, adjusted annually for 
inflation).
Background Checks and Federal Permits
    H.R. 4864 would require applicants for Federal licenses and 
permits for handling explosives to submit identifying 
information on specific employees to the ATF. The bill also 
would require certain persons with management responsibilities 
related to explosives to submit fingerprints and a photograph.
    Under current law, residents of a State may purchase 
explosives from a business located in that State or in an 
adjacent State without a Federal permit. The bill would require 
those purchasers of explosives to obtain a permit from the ATF.
    Based on information from the ATF and representatives of 
the commercial explosives industry, CBO estimates that the cost 
for those mandates would be less than $2 million annually 
beginning in 2003.
Samples of Materials and other Information
    H.R. 4864 would require manufacturers and importers of 
explosive materials or ammonium nitrate to furnish samples of 
those materials to the ATF. The cost of this mandate would be 
comprised of the fair market value of the samples and the cost 
of shipping those samples. The bill would provide reimbursement 
for those costs and, therefore, the mandated entities would not 
incur any compliance costs.
    In addition, the bill would require manufacturers and 
importers of explosive materials or ammonium nitrate to furnish 
any information that the Secretary determines to be relevant to 
the identification of the explosive material or ammonium 
nitrate. Based on information from the ATF, the specific 
information that may be required is not determined, but it is 
expected not to be large.
Prohibition to Receive and Possess Explosive Materials
    The bill would expand the categories of individuals who 
would be prohibited from receiving and possessing explosive 
materials to include persons who have been committed to a 
mental institution, discharged dishonorably from the Armed 
Forces, certain aliens, and U.S. citizens who have renounced 
their citizenship. Based on information from ATF and 
representatives of the commercial explosives industry, the 
number of people affected would not be great. Thus, CBO 
estimates that the cost of this mandate would be small.

                         ESTIMATE PREPARED BY:

Federal Spending: Mark Grabowicz (226-2860)
Impact on State, Local, and Tribal Governments: Angela Seitz 
    (225-3220)
Impact on the Private Sector: Jean Talarico (226-2940)

                         ESTIMATE APPROVED BY:

Peter H. Fontaine
Deputy Assistant Director for Budget Analysis

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in article I, section 8, clause 1 and 18 of 
the Constitution.

               Section-by-Section Analysis and Discussion

Section 1. Short Title.
    The short title of this bill is the ``Anti-Terrorism 
Explosives Act of 2002.''
Section 2. Permits for Purchasers of Explosives.
    Current law makes it a crime to transport, ship, receive, 
or distribute explosive materials in interstate or foreign 
commerce without a license or permit issued by the Bureau of 
Alcohol, Tobacco and Firearms (ATF).\2\ However, under current 
law a loophole exists which allows purchases of explosives 
without a Federal license or permit within a State by a 
resident of that State.\3\
---------------------------------------------------------------------------
    \2\ 18 U.S.C. Sec. Sec. 842, 843
    \3\ 18 U.S.C. Sec. 842(a)(3)
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    This section of the bill requires any individual who seeks 
to purchase explosive materials to obtain a license, permit, or 
limited permit from ATF and makes it unlawful for any person to 
distribute explosive materials to a person who is not the 
holder of a license, permit, or limited permit. The new permit 
requirement would close the current loophole in the law and 
significantly enhance the government's ability to prevent the 
misuse and unsafe storage of explosives.
    This section creates an additional option for a permit 
called a ``limited permit.'' Limited permittees will be allowed 
to purchase explosives four times in a twelve month period. The 
use of limited permits will provide better regulation and 
tracking of explosives in the United States. Limited permittees 
will be required to undergo an application process similar to 
that required of licensees and permittees, with some 
exceptions. Currently, licensees and permittees may be 
inspected at any time by ATF officials to ensure compliance 
with explosives regulations. This legislation does not allow 
ATF the right of entry without a warrant on the property of 
persons possessing limited permits; however, it may be 
necessary for ATF to verify the accuracy of information 
provided by individuals applying for a limited permit, 
including inspection of storage facilities prior to approval of 
that application. As part of the permit application and renewal 
process, ATF will conduct background checks on all individuals 
wishing to acquire or possess explosive materials. Any person 
or entity seeking to obtain a license or permit from ATF will 
be required to undergo a background check and allow background 
checks of company employees, thereby reducing the availability 
of explosives to terrorists, felons and others prohibited by 
law from possessing explosives.
    Applicants would be required to submit photographs and 
fingerprints along with their applications, to ensure that a 
thorough background check can be completed. In the case of a 
corporation, partnership or association, the applicant would be 
required to submit fingerprints and photographs of responsible 
persons, meaning those individuals who possess the power to 
direct the management and policies of the corporation, 
partnership or association pertaining to explosive materials.
    This section will also require applicants to list the names 
of all employees who will have possession of explosive 
materials, so that ATF can verify that these individuals are 
not prohibited from receiving or possessing explosives. Under 
current law, it is too easy for would-be terrorists and 
criminals to obtain access to explosive materials by obtaining 
jobs with explosives licensees or permittees. These expanded 
requirements would also apply to entities seeking to obtain a 
license to sell explosives as well as applicants for permits.
    This section is not intended to require corporate 
applicants for explosives licenses or permits to list every 
single corporate director or officer as a ``responsible 
person'' on its application. Those officials within the 
corporation who have no power to direct the management and 
policies of the applicant with respect to explosive materials 
need not be listed on the application. For example, in a large 
corporation that uses explosives in just one of many business 
activities, there may be many corporate officials who have no 
responsibilities or authority in connection with the explosives 
aspects of the company's business. These officials would not be 
listed as ``responsible persons'' on the application, and would 
not need to submit fingerprints or photographs to ATF.
    The Secretary of Treasury should strive for balanced 
enforcement. In so doing, the Secretary should avoid imposing 
unnecessary burdens on applicants for explosives licenses and 
permits. There is no reason to require background checks for 
corporate officials who have no responsibilities or authority 
in connection with the explosives aspects of the company's 
business.
    It is expected that ATF will work closely with the 
regulated industry to develop guidance as to which employees 
are considered to be in ``possession'' of explosive materials 
in the course of their employment. Applicants for explosives 
licenses or permits are not required to list every single 
employee of the business. Instead, they are only required to 
list employees who are expected to possess explosive materials 
as part of their duties.
    In developing these standards, ATF should be guided by the 
case law interpreting the term ``possession'' under the Gun 
Control Act of 1968 (GCA) \4\, as amended. It is well 
established that possession under the GCA may be demonstrated 
through either actual or constructive possession. Actual 
possession exists when a person is in immediate possession or 
control of an object, and includes instances where a person 
knowingly has direct physical control over the object at a 
given time. Thus, employees who physically handle explosive 
materials would clearly be in possession of those materials. 
This would include, among others, employees who handle 
explosive materials (as defined by the law) as part of a 
production process; employees who handle explosive materials in 
order to ship, transport, or sell them; and employees who 
actually use the explosive materials. All of these employees, 
as well as any other employees who actually possess explosive 
materials as part of their duties, must be listed on the 
application for a license or permit.
---------------------------------------------------------------------------
    \4\ 18 U.S.C. Ch. 44, Sec. Sec. 921 et seq.
---------------------------------------------------------------------------
    Where direct physical contact is lacking, a person may 
nonetheless have constructive possession where he or she 
knowingly has the power and the intention at a given time to 
exercise dominion and control over the explosives, either 
directly or through others. Accordingly, this section would 
require applicants for licenses or permits to list all 
employees who will have constructive possession of explosive 
materials as part of their duties. For example, a supervisor at 
a construction site who keeps the keys for the building in 
which the explosives are stored, and directs the use of 
explosives by other employees, would be in constructive 
possession of those explosives.
    The background checks will be performed by ATF and the 
employer will be notified if an employee is cleared or a 
prohibited person; however, the individual who is determined to 
be prohibited, not the employer, is the only one who will 
receive information regarding the reason for the prohibition. 
The individual is then free to appeal or challenge the 
prohibition. Additionally, individuals who pass a background 
check will receive a letter from ATF that may serve as 
verification that they are not a prohibited person for future 
employees. The Committee expects the background checks will be 
possessed in a timely manner.
    Permittees or licensees who hire new employees who will be 
authorized to possess or will be ``responsible persons'' after 
an application for a permit or license was approved would be 
expected to submit those names to ATF for a background check. 
Individuals employed by a licensee or permittee at the time 
this legislation is enacted will be required to submit to a 
background check at the time the employer applies for the 
renewal of a license or permit or issuance of a new license or 
permit by ATF.
    Given the fact that this legislation will require 
applicants to provide additional information which must be 
reviewed and verified by ATF, the time period for approval or 
denial of an application was extended from 45 days to 90 days 
under this legislation to allow additional time to process 
applications. However, it is expected that the ATF will process 
applications in a timely fashion and will not deny approval of 
applications based solely on its inability to complete the 
application process in the time established by statute. Pending 
approval of the renewal of a license or permit, the Committee 
expects the ATF to allow current licensees and permittees to 
continue operations.
Section 3. Persons Prohibited From Receiving or Possessing Explosive 
        Materials.
    Under current law, persons who have been committed to a 
mental institution, aliens that are not lawful permanent 
residents of the United States, persons who have been 
dishonorably discharged from the military, and Americans who 
have renounced their citizenship are not prohibited from 
receiving or possessing explosive materials.\5\
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    \5\ 18 U.S.C. Sec. 842
---------------------------------------------------------------------------
    This section expands the list of persons prohibited from 
possessing explosive materials to include unlawful aliens, 
persons dishonorably discharged from the Armed Forces, persons 
committed to a mental institution, and persons who have 
renounced their citizenship of the United States. These 
additions will make the categories of persons prohibited from 
possessing explosives similar to the categories of persons 
prohibited from obtaining firearms. This section also expands 
the categories of persons who may seek relief from disability 
under these provisions to include all categories of prohibited 
persons.
Section 4. Requirement to Provide Samples of Explosive Materials and 
        Ammonium Nitrate.
    This section requires companies who import or manufacture 
explosive materials to provide ATF with samples on a 
reimbursable basis to allow for easier tracking and 
identification after an incident.
Section 5. Destruction of Property of Institutions Receiving Federal 
        Financial Assistance.
    This section expands ATF authority to investigate 
destruction of property by fire or explosion if the institution 
receives Federal assistance.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, 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 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

                      TITLE 18, UNITED STATES CODE



           *       *       *       *       *       *       *
PART I--CRIMES

           *       *       *       *       *       *       *


   CHAPTER 40--IMPORTATION, MANUFACTURE, DISTRIBUTION AND STORAGE OF 
EXPLOSIVE MATERIALS

           *       *       *       *       *       *       *


Sec. 841. Definitions

    As used in this chapter--
            (a) * * *

           *       *       *       *       *       *       *

            [(j) ``Permittee'' means any user of explosives for 
        a lawful purpose, who has obtained a user permit under 
        the provisions of this chapter.]
            (j) ``Permittee'' means any user of explosives for 
        a lawful purpose, who has obtained a user permit or a 
        limited permit under this chapter.

           *       *       *       *       *       *       *


Sec. 842. Unlawful acts

    (a) It shall be unlawful for any person--
            (1) to engage in the business of importing, 
        manufacturing, or dealing in explosive materials 
        without a license issued under this chapter;
            (2) knowingly to withhold information or to make 
        any false or fictitious oral or written statement or to 
        furnish or exhibit any false, fictitious, or 
        misrepresented identification, intended or likely to 
        deceive for the purpose of obtaining explosive 
        materials, or a license, permit, exemption, or relief 
        from disability under the provisions of this chapter; 
        [and]
            [(3) other than a licensee or permittee knowingly--
                    [(A) to transport, ship, cause to be 
                transported, or receive in interstate or 
                foreign commerce any explosive materials, 
                except that a person who lawfully purchases 
                explosive materials from a licensee in a State 
                contiguous to the State in which the purchaser 
                resides may ship, transport, or cause to be 
                transported such explosive materials to the 
                State in which he resides and may receive such 
                explosive materials in the State in which he 
                resides, if such transportation, shipment, or 
                receipt is permitted by the law of the State in 
                which he resides; or
                    [(B) to distribute explosive materials to 
                any person (other than a licensee or permittee) 
                who the distributor knows or has reasonable 
                cause to believe does not reside in the State 
                in which the distributor resides.
    [(b) It shall be unlawful for any licensee knowingly to 
distribute any explosive materials to any person except--
            [(1) a licensee;
            [(2) a permittee; or
            [(3) a resident of the State where distribution is 
        made and in which the licensee is licensed to do 
        business or a State contiguous thereto if permitted by 
        the law of the State of the purchaser's residence.]
            (3) other than a licensee or permittee, knowingly--
                    (A) to transport, ship, cause to be 
                transported, or receive any explosive 
                materials; or
                    (B) to distribute explosive materials to 
                any person other than a licensee or permittee; 
                or
            (4) who is a holder of a limited permit--
                    (A) to transport, ship, cause to be 
                transported, or receive in interstate or 
                foreign commerce any explosive materials; or
                    (B) to receive explosive materials from a 
                licensee or permittee whose premises are 
                located in the State of residence of the 
                holder, except that the holder of a limited 
                permit may so receive explosive materials on 4 
                or fewer occasions pursuant to regulations 
                prescribed by the Secretary.
    (b) It shall be unlawful for any licensee or permittee 
knowingly to distribute any explosive materials to any person 
other than--
            (1) a licensee;
            (2) a holder of a user permit; or
            (3) a holder of a limited permit who is a resident 
        of the State where distribution is made and in which 
        the transferor's premises are located.

           *       *       *       *       *       *       *

    (d) It shall be unlawful for any person knowingly to 
distribute explosive materials to any individual who:
            (1) * * *

           *       *       *       *       *       *       *

            (5) is an unlawful user of or addicted to any 
        controlled substance (as defined in section 102 of the 
        Controlled Substances Act (21 U.S.C. 802)); [or]
            (6) has been adjudicated a mental defective[.] or 
        has been committed to a mental institution;
            (7) is an alien, other than a lawful permanent 
        resident alien (as defined in section 101(a)(20) of the 
        Immigration and Nationality Act) or an alien described 
        in subsection (q)(2) of this section;
            (8) has been discharged from the Armed Forces under 
        dishonorable conditions; or
            (9) having been a citizen of the United States, has 
        renounced his citizenship.

           *       *       *       *       *       *       *

    (i) It shall be unlawful for any person--
            (1) * * *

           *       *       *       *       *       *       *

            (3) who is an unlawful user of or addicted to any 
        controlled substance (as defined in section 102 of the 
        Controlled Substances Act (21 U.S.C. 802)); [or]

           *       *       *       *       *       *       *

            (5) who, is an alien, other than a lawful permanent 
        resident alien (as defined in section 101(a)(20) of the 
        Immigration and Nationality Act) or an alien described 
        in subsection (q)(2);
            (6) who has been discharged from the Armed Forces 
        under dishonorable conditions; or
            (7) who, having been a citizen of the United 
        States, has renounced his citizenship;

           *       *       *       *       *       *       *

    (q) Provisions Relating to Legal Aliens.--
            (1) Definition.--In this subsection, the term 
        ``alien'' has the same meaning as in section 101(a)(3) 
        of the Immigration and Nationality Act (8 U.S.C. 
        1101(a)(3)).
            (2) Exceptions.--An alien is described in this 
        paragraph if the alien--
                    (A) is--
                            (i) in lawful nonimmigrant status;
                            (ii) a refugee admitted under 
                        section 207 of the Immigration and 
                        Nationality Act (8 U.S.C. 1157); or
                            (iii) in asylum status under 
                        section 208 of the Immigration and 
                        Nationality Act (8 U.S.C. 1158); and
                    (B) is--
                            (i) a law enforcement officer of a 
                        foreign country designated in writing 
                        by the Attorney General as a country 
                        covered by this subparagraph, and is 
                        entering the United States on official 
                        law enforcement business;
                            (ii) a person having the authority 
                        to direct or cause the direction of the 
                        management and policies of a 
                        corporation, partnership, or 
                        association licensed under section 
                        843(a), and shipping, transporting, 
                        possessing or receiving explosive 
                        materials relates to the authority; or
                            (iii) a member of the armed forces 
                        of a foreign country that is a member 
                        of the North Atlantic Treaty 
                        Organization, Australia, New Zealand, 
                        Japan, Republic of Korea, or other 
                        foreign country designated in writing 
                        by the Attorney General, after 
                        consultation with the Secretary of 
                        Defense, as a country covered by this 
                        subparagraph (whether or not admitted 
                        in a non-immigrant status), who is 
                        present in the United States under 
                        military orders for training or other 
                        authorized purpose, and the shipping, 
                        transporting, possessing, or receiving 
                        explosive materials is in furtherance 
                        of the military purpose;
                            (iv) lawfully present in the United 
                        States in cooperation with the Director 
                        of Central Intelligence, and the 
                        shipment, transportation, receipt, or 
                        possession of the explosive materials 
                        is in furtherance of such cooperation.

Sec. 843. Licenses and user permits

    (a) An application for a user permit or limited permit or a 
license to import, manufacture, or deal in explosive materials 
shall be in such form and contain such information as the 
Secretary shall by regulation prescribe, including the names of 
and appropriate identifying information regarding all employees 
who will be authorized by the employer to possess explosive 
materials, as well as fingerprints and a photograph of each 
responsible person with respect to the applicant. In this 
section, the term ``responsible person'' means, with respect to 
an applicant, an individual who has the power to direct the 
management and policies of the applicant pertaining to 
explosive materials. Each applicant for a license or permit 
shall pay a fee to be charged as set by the Secretary, said fee 
not to exceed $200 for each license or permit. [Each license or 
permit shall be valid for no longer than three years from date 
of issuance and shall be renewable upon the same conditions and 
subject to the same restrictions as the original license or 
permit and upon payment of a renewal fee not to exceed one-half 
of the original fee.] Each license or user permit shall be 
valid for no longer than 3 years from the date of issuance, and 
each limited permit shall be valid for no longer than 1 year 
from the date of issuance. Each license or permit shall be 
renewable upon the same conditions and subject to the same 
restrictions as the original license or permit (except that, in 
the case of the renewal of a limited permit, the verification 
requirement of subsection (b)(5) may be satisfied by inspection 
or such other means as the Secretary deems appropriate) and 
upon payment of a renewal fee not to exceed \1/2\ of the 
original fee.
    (b) Upon the filing of a proper application and payment of 
the prescribed fee, and subject to the provisions of this 
chapter and other applicable laws, the Secretary shall issue to 
such applicant the appropriate license or permit if--
            [(1) the applicant (including in the case of a 
        corporation, partnership, or association, any 
        individual possessing, directly or indirectly, the 
        power to direct or cause the direction of the 
        management and policies of the corporation, 
        partnership, or association) is not a person to whom 
        the distribution of explosive materials would be 
        unlawful under section 842(d) of this chapter;]
            (1) the applicant (or, if the applicant is a 
        corporation, partnership, or association, each 
        responsible person with respect to the applicant) is 
        not a person who is prohibited from receiving, 
        distributing, transporting, or possessing explosive 
        materials under subsection (d) or (i) of section 842;
            (2) none of the employees who will be authorized by 
        the applicant to possess explosive materials in the 
        course of their employment with the applicant is a 
        person whose possession of explosives would be unlawful 
        under section 842(i);
            [(2)] (3) the applicant has not willfully violated 
        any of the provisions of this chapter or regulations 
        issued hereunder;
            [(3)] (4) the applicant has in a State premises 
        from which he conducts or intends to conduct business;
            [(4)] (5) the Secretary has verified by inspection 
        that the applicant has a place of storage for explosive 
        materials which meets such standards of public safety 
        and security against theft as the Secretary by 
        regulations shall prescribe; [and]
            [(5)] (6) the applicant has demonstrated and 
        certified in writing that he is familiar with all 
        published State laws and local ordinances relating to 
        explosive materials for the location in which he 
        intends to do business[.]; and
            (7) in the case of a limited permit, the applicant 
        has certified in writing that the applicant will not 
        receive explosive materials on more than 4 different 
        occasions during any 12-month period in which a limited 
        permit issued to the applicant is in effect.
    (c) The Secretary shall approve or deny an application 
within [a period of forty-five days beginning on the date such] 
90 days after the application is received by the Secretary.

           *       *       *       *       *       *       *

    (f) Licensees and [permittees] holders of user permits 
shall make available for inspection at all reasonable times 
their records kept pursuant to this chapter or the regulations 
issued hereunder, and licensees and permittees shall submit to 
the Secretary such reports and information with respect to such 
records and the contents thereof as he shall by regulations 
prescribe. The Secretary may enter during business hours the 
premises (including places of storage) of any licensee or 
[permittee] holder of a user permit, for the purpose of 
inspecting or examining (1) any records or documents required 
to be kept by such licensee or permittee, under the provisions 
of this chapter or regulations issued hereunder, and (2) any 
explosive materials kept or stored by such licensee or 
permittee at such premises. Upon the request of any State or 
any political subdivision thereof, the Secretary may make 
available to such State or any political subdivision thereof, 
any information which he may obtain by reason of the provisions 
of this chapter with respect to the identification of persons 
within such State or political subdivision thereof, who have 
purchased or received explosive materials, together with a 
description of such explosive materials.
    (g) Licenses and user permits issued under the provisions 
of subsection (b) of this section shall be kept posted and kept 
available for inspection on the premises covered by the license 
and permit.
    (h)(1) If the Secretary receives from an employer the name 
and other identifying information with respect to a responsible 
person or an employee who will be authorized by the employer to 
possess explosive materials in the course of employment with 
the employer, the Secretary shall determine whether possession 
of explosives by the responsible person or the employee, as the 
case may be, would be unlawful under section 842(i). In making 
the determination, the Secretary may take into account a letter 
or document issued under paragraph (2) of this subsection.
    (2)(A) If the Secretary determines that possession of 
explosives by the responsible person or the employee would not 
be unlawful under section 842(i), the Secretary shall notify 
the employer in writing or electronically of the determination 
and issue to the responsible person or the employee, as the 
case may be, a letter of clearance which confirms the 
determination.
    (B) If the Secretary determines that possession of 
explosives by the responsible person or the employee would be 
unlawful under section 842(i), the Secretary shall notify the 
employer in writing or electronically of the determination and 
issue to the responsible person or the employee, as the case 
may be, a document which confirms the determination, explains 
the grounds for the determination, provides information on how 
the disability may be relieved, and explains how the 
determination may be appealed.
    (i) A person who manufactures or imports explosive 
materials or ammonium nitrate shall, as required by letter 
issued by the Secretary, furnish samples of the explosive 
materials or ammonium nitrate, information on chemical 
composition of the explosive materials or ammonium nitrate, and 
any other information that the Secretary determines is relevant 
to the identification of the explosive materials or to 
identification of the ammonium nitrate. The Secretary shall, by 
regulation, provide for the reimbursement of the fair market 
value of samples furnished pursuant to this subsection, as well 
as the reasonable costs of shipment.

Sec. 844. Penalties

    (a) * * *

           *       *       *       *       *       *       *

    (f)(1) Whoever maliciously damages or destroys, or attempts 
to damage or destroy, by means of fire or an explosive, any 
building, vehicle, or other personal or real property in whole 
or in part owned or possessed by, or leased to, the United 
States, or any department or agency thereof, or any institution 
or organization receiving Federal financial assistance, shall 
be imprisoned for not less than 5 years and not more than 20 
years, fined under this title, or both.

           *       *       *       *       *       *       *


Sec. 845. Exceptions; relief from disabilities

    (a) * * *
    (b) A person who [had been indicted for or convicted of a 
crime punishable by imprisonment for a term exceeding one year] 
is prohibited from shipping, transporting, receiving, or 
possessing any explosive may make application to the Secretary 
for relief from the disabilities imposed by this chapter with 
respect to engaging in the business of importing, 
manufacturing, or dealing in explosive materials, or the 
purchase of explosive materials, and incurred by reason [of 
such indictment or conviction] of the applicable provision of 
section 842(i), and the Secretary may grant such relief if it 
is established to his satisfaction that the circumstances 
regarding [the indictment or conviction] the applicability of 
such provision, and the applicant's record and reputation, are 
such that the applicant will not be likely to act in a manner 
dangerous to public safety and that the granting of the relief 
will not be contrary to the public interest. A licensee or 
permittee who makes application for relief from the 
disabilities incurred under this chapter by reason [of 
indictment or conviction] of such applicability, shall not be 
barred [by such indictment or conviction] by such applicability 
from further operations under his license or permit pending 
final action on an application for relief filed pursuant to 
this section.

           *       *       *       *       *       *       *


                           Markup Transcript



                            BUSINESS MEETING

                        WEDNESDAY, JUNE 19, 2002

                  House of Representatives,
                                Committee on the Judiciary,
                                                    Washington, DC.
    The Committee met, pursuant to notice, at 10:29 a.m., in 
Room 2141, Rayburn House Office Building, Hon. F. James 
Sensenbrenner, Jr. [Chairman of the Committee] presiding.
    Chairman Sensenbrenner. The Committee will be in order. A 
working quorum is present.

           *       *       *       *       *       *       *

    The next item on the agenda is the adoption of H.R. 4864, 
the ``Anti-Terrorism Explosives Act of 2002.''
    The Chair recognizes the gentleman from Texas, Mr. Smith, 
the Subcommittee Chairman, for purposes of a motion.
    Mr. Smith. Mr. Chairman, the Subcommittee on Crime, 
Terrorism, and Homeland Security reports favorably the bill 
H.R. 4864 and moves its favorable recommendation to the full 
House.
    Chairman Sensenbrenner. Without objection, the bill will 
because considered as read and open for amendment at any point.
    [The bill, H.R. 4864, follows:]
    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    
    Chairman Sensenbrenner. The Chair would like to get us done 
by 12:30, if that's possible. And without objection, opening 
statements will be placed in the record at this point.
    [The prepared statement of Ms. Jackson Lee follows:]
       Prepared Statement of the Honorable Sheila Jackson Lee, a 
           Representative in Congress From the State of Texas
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Chairman Sensenbrenner. Are there amendments?
    Ms. Jackson Lee. I have an amendment, Mr. Chairman. I'll be 
very brief.
    Chairman Sensenbrenner. The clerk will report the 
amendment.
    The Clerk. Amendment to H.R. 4864, offered by Ms. Jackson 
Lee----
    Chairman Sensenbrenner. Without objection, the amendment is 
considered as read.
    [The amendment follows:]
    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    
    Chairman Sensenbrenner. The gentlewoman from Texas is 
recognized for 5 minutes.
    Ms. Jackson Lee. I thank the distinguished Chairman, and I 
thank the Committee, and I thank the Ranking Member of this 
Committee, and the Chairman as well.
    We know, with the new assignment that has been given to 
this Subcommittee, which provides for oversight over homeland 
security, these are important issues dealing with 
antiterrorism. Knowing that this is an important legislative 
initiative dealing with the issue of explosives, which we have 
confronted in the most tragic way on September 11th, I simply 
add the keeping of records; that we have worked with the 
Chairman and the Ranking Member, I believe, on this 
legislation.
    And all this amendment does is, not later than 1 year after 
the effective date of this act, the Secretary of the Treasury 
shall maintain an electronic record of each license, user 
permit, or limited permit issued or renewed under section 843 
on or after 1 year after the effective date of this act.
    This, again, goes to data collection. We believe this is an 
important aspect to help with ATF, coordinating the permit-
holder information----
    Chairman Sensenbrenner. Will the gentlewoman yield?
    Ms. Jackson Lee. I'd be happy to yield.
    Chairman Sensenbrenner. I believe this is a constructive 
addition to the legislation and favor the amendment.
    Ms. Jackson Lee. I yield back. I thank the distinguished 
gentleman.
    Chairman Sensenbrenner. The question is on agreeing to the 
amendment offered by the gentlewoman from Texas, Ms. Jackson 
Lee.
    Those in favor will say aye.
    Opposed, no.
    The ayes appear to have it. The ayes have it, and the 
amendment is agreed to.
    Mr. Scott. Mr. Chairman?
    Chairman Sensenbrenner. Are there further amendments?
    The gentleman from Virginia, Mr. Scott.
    Mr. Scott. Mr. Chairman, I move to strike the last word.
    Chairman Sensenbrenner. The gentleman is recognized for 5 
minutes.
    Mr. Scott. And I know we're trying to move quickly.
    I just wanted to point out that the Administration witness 
who testified indicated that they do not have the 
administrative capability of performing the tasks under this 
bill, but they will ask for funding.
    So I would want the Members of the Committee to be 
sensitive to the idea that when they ask for funding--when we 
pass the bill, funding will be necessary for them to be to 
comply with the bill.
    Chairman Sensenbrenner. Does the gentleman yield?
    Mr. Scott. I yield.
    Chairman Sensenbrenner. I agree with the gentleman from 
Virginia on that point. But as you know, the appropriators 
usually don't care what authorizers think. But we will speak 
up.
    Mr. Scott. I yield back.
    Chairman Sensenbrenner. The question is--the Chair notes 
the--are there further amendments?
    The Chair notes the presence of a reporting quorum.
    Those in favor of reporting the bill favorably will say 
aye.
    Opposed, no.
    The ayes appear to have it. The ayes have it, and the 
motion to report favorably is adopted.
    Without objection, the bill will be reported favorably to 
the House in the form of a single amendment in the nature of a 
substitute, incorporating the amendment adopted here today. 
Without objection, the Chairman is authorized to move to go to 
conference pursuant to House rules. Without objection, the 
staff is directed to make technical and conforming changes. And 
all Members will be given 2 days, as provided by House rules, 
in which to submit additional, dissenting, supplemental, or 
minority views.
    The Chair would like to thank everybody for their 
cooperation. We made this a rolling markup. We have now rolled 
our way all the way down the hill and have accomplished quite a 
bit.
    The Judiciary Committee remains the most productive in 
Congress, because everybody works together.
    And the Committee is adjourned.
    [Whereupon, at 12:15 p.m., the Committee was adjourned.]

                                
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