[House Report 110-357]
[From the U.S. Government Publishing Office]
110th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 110-357
======================================================================
SECURE HANDLING OF AMMONIUM NITRATE ACT OF 2007
_______
October 2, 2007.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Thompson of Mississippi, from the Committee on Homeland Security,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 1680]
[Including cost estimate of the Congressional Budget Office]
The Committee on Homeland Security, to whom was referred
the bill (H.R. 1680) to authorize the Secretary of Homeland
Security to regulate the sale of ammonium nitrate to prevent
and deter the acquisition of ammonium nitrate by terrorists,
having considered the same, report favorably thereon with
amendments and recommend that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 7
Background and Need for Legislation.............................. 7
Hearings......................................................... 7
Committee Consideration.......................................... 8
Committee Votes.................................................. 8
Committee Oversight Findings..................................... 9
New Budget Authority, Entitlement Authority, and Tax Expenditures 9
Congressional Budget Office Estimate............................. 9
Statement of General Performance Goals and Objectives............ 12
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits....................................................... 13
Federal Mandates Statement....................................... 13
Advisory Committee Statement..................................... 13
Constitutional Authority Statement............................... 13
Applicability to Legislative Branch.............................. 13
Section-by-Section Analysis of the Legislation................... 13
Changes in Existing Law Made by the Bill, as Reported............ 18
Minority Views................................................... 27
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Secure Handling of Ammonium Nitrate
Act of 2007''.
SEC. 2. SECURE HANDLING OF AMMONIUM NITRATE.
(a) In General.--Title VIII of the Homeland Security Act of 2002 (6
U.S.C. 361 et seq.) is amended by adding at the end the following new
subtitle:
``Subtitle J--Secure Handling of Ammonium Nitrate
``SEC. 899A. DEFINITIONS.
``In this subtitle, the following definitions apply:
``(1) The term `ammonium nitrate' means--
``(A) solid ammonium nitrate that is chiefly the
ammonium salt of nitric acid and contains not less than
33 percent nitrogen by weight; and
``(B) any mixture containing a percentage of ammonium
nitrate that is equal to or greater than the percentage
determined by the Secretary under section 899B(b).
``(2) The term `ammonium nitrate facility' means any entity
that produces, sells, or otherwise transfers ownership of, or
provides application services for, ammonium nitrate.
``(3) 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.--The Secretary, in consultation with
the heads of appropriate Federal departments and agencies, including
the Secretary of Agriculture, shall, through notice and comment and by
no later than 90 days after the date of the enactment of this subtitle,
establish a threshold percentage for ammonium nitrate in a substance.
If a substance contains a percentage of ammonium nitrate that is equal
to or greater than the percentage established by the Secretary, the
substance shall be treated as ammonium nitrate for the purposes of this
subtitle.
``(c) Registration of Owners of Ammonium Nitrate Facilities.--
``(1) Registration.--The Secretary shall establish a process
by which--
``(A) any person who is the owner of an ammonium
nitrate facility is required to register with the
Department; and
``(B) upon such registration, such person is issued a
registration number for purposes of this subtitle.
``(2) Registration information.--The Secretary shall require
that each applicant for registration as the owner of an
ammonium nitrate facility must submit to the Secretary--
``(A) the name, address, and telephone number of each
ammonium nitrate facility owned by the applicant;
``(B) the name of the person designated by the owner
of the ammonium nitrate facility as the point of
contact of such facility, for purposes of this
subtitle;
``(C) for each such facility, the amount of ammonium
nitrate that is sold or transferred during each year;
and
``(D) such other information as the Secretary may
determine is appropriate.
``(d) Registration of Ammonium Nitrate Purchasers.--
``(1) Registration.--The Secretary shall establish a process
by which--
``(A) any person who seeks to be an ammonium nitrate
purchaser is required to register with the Department;
and
``(B) upon such registration, such person is issued a
registration number for purposes of this subtitle.
``(2) Registration information.--The Secretary shall require
that each applicant for registration under this subsection as a
prospective ammonium nitrate purchaser must submit to the
Secretary the name, address, and telephone number of the
applicant and the intended use of ammonium nitrate to be
purchased by the applicant.
``(e) Records.--
``(1) Maintenance of records.--The Secretary shall require
the owner of an ammonium nitrate facility engaged in selling or
transferring ammonium nitrate to--
``(A) maintain a record of each sale or transfer of
ammonium nitrate, during the two-year period beginning
on the date of such sale or transfer; and
``(B) include in such record the information
described in paragraph (2).
``(2) Specific information required.--For each such sale or
transfer, the Secretary shall require the owner of an ammonium
nitrate facility to--
``(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 from the owner of an ammonium nitrate facility,
in a manner prescribed by the Secretary;
``(B) if applicable, record the name, address, and
telephone number of each individual who takes
possession of the ammonium nitrate on behalf of the
person referred to in subparagraph (A), at the point of
sale;
``(C) record the date and quantity of ammonium
nitrate sold or transferred; and
``(D) verify the identity of the persons referred to
in subparagraphs (A) and (B), as applicable, in
accordance with a procedure established by the
Secretary.
``(3) Protection of information.--In maintaining records in
accordance with paragraph (1), the owner of an ammonium nitrate
facility shall take reasonable actions to ensure the protection
of the information included in such records.
``(f) Exemption for Explosive Purposes.--The Secretary may exempt
from this subtitle a person producing, selling, or purchasing ammonium
nitrate exclusively for use as an explosive material under a license
issued under chapter 40 of title 18, United States Code.
``(g) Consultation.--In carrying out this section, the Secretary
shall consult with the Secretary of Agriculture, States, and
appropriate private sector entities, to ensure that the access of
agricultural producers to ammonium nitrate is not unduly burdened.
``(h) Data Confidentiality.--
``(1) In general.--Notwithstanding section 552 of title 5,
United States Code, or the USA PATRIOT ACT (Public Law 107-56;
115 Stat. 272), and except as provided in paragraph (2), the
Secretary may not disclose to any person any information
obtained under this subtitle.
``(2) Exception.--The Secretary may disclose any information
obtained by the Secretary under this subtitle to an officer or
employee of the United States, or a person that has entered
into a contract with the United States, who has a need to know
the information to perform the duties of the officer, employee,
or person, or to a State agency pursuant to section 899D, under
appropriate arrangements to ensure the protection of the
information.
``(i) Registration Procedures and Check of Terrorist Watch List.--
``(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 provided for in
section 899F(e).
``(2) Check of terrorist watch list.--
``(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 on the terrorist watch list.
``(B) Authority to deny registration number.--If the
person's identifying information appears on the
terrorist watch list and the Secretary determines such
person may pose a threat to national security, 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
provided for 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 persons of the status of
their application 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 persons denied
registration numbers under this subtitle.
``(5) Restrictions on use and maintenance of information.--
``(A) In general.--Information obtained by the
Secretary under this section may not be made available
to the public.
``(B) Use of certain information.--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.
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 watch list.--
``(A) Re-checks.--The Secretary shall, as
appropriate, re-check persons provided a registration
number pursuant to this subtitle against the terrorist
watch list, 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 such section
or for the purpose of deterring or preventing the misappropriation or
use of ammonium nitrate in an act of terrorism.
``SEC. 899D. ADMINISTRATIVE PROVISIONS.
``(a) Cooperative Agreements.--The Secretary--
``(1) may enter into a cooperative agreement with the
Secretary of Agriculture, or the head of any State department
of agriculture or its designee involved in agricultural
regulation, in consultation with the State agency responsible
for homeland security, to carry out the provisions of this
subtitle; and
``(2) wherever possible, shall seek to cooperate with State
agencies or their designees that oversee ammonium nitrate
facility operations when seeking cooperative agreements to
implement the registration and enforcement provisions of this
subtitle.
``(b) Delegation.--
``(1) Authority.--The Secretary may delegate to a State the
authority to assist the Secretary in the administration and
enforcement of this subtitle.
``(2) Delegation required.--At the request of a Governor of a
State, the Secretary shall delegate to the State the authority
to carry out functions under sections 899B and 899C, if the
Secretary determines that the State is capable of
satisfactorily carrying out such functions.
``(3) Funding.--Subject to the availability of
appropriations, if the Secretary enters into an agreement with
a State under this subsection to delegate functions to the
State, the Secretary shall provide to the State sufficient
funds to carry out the delegated functions.
``(c) Provision of Guidance and Notification Materials to Ammonium
Nitrate Facilities.--
``(1) Guidance.--The Secretary shall make available to each
owner of an ammonium nitrate facility registered under section
899B(c)(1) guidance on--
``(A) the identification of suspicious ammonium
nitrate purchases or 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) any such additional subjects as the Secretary
determines are appropriate to prevent the
misappropriation or use of ammonium nitrate in an act
of terrorism.
``(2) Use of materials and programs.--In providing guidance
under this subsection, the Secretary shall, to the extent
practicable, leverage any relevant materials and programs.
``(3) Notification materials.--
``(A) In general.--The Secretary shall make available
materials suitable for posting at ammonium nitrate
facilities where ammonium nitrate is sold.
``(B) Design of materials.--Such materials shall be
designed to notify prospective ammonium nitrate
purchasers of--
``(i) the record-keeping requirements under
section 899B; and
``(ii) the penalties for violating such
requirements.
``SEC. 899E. THEFT REPORTING REQUIREMENT.
``Any person who is required to comply with section 899B(e) who has
knowledge of the theft or unexplained loss of ammonium nitrate shall
report such theft or loss to the appropriate Federal law enforcement
authorities within one calendar day of the date on which the person
becomes aware of such theft or loss. 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,
unless such person is 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) Prohibitions.--No person shall--
``(1) buy and take possession of ammonium nitrate without a
registration number required under subsection (c) or (d) of
section 899B;
``(2) own or operate an ammonium nitrate facility without a
registration number required under section 899B(c); or
``(3) fail to comply with any requirement or violate any
other prohibition under this subtitle.
``(c) 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.
``(d) 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.
``(e) 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.
``(f) Delay in Application of Prohibition.--Paragraphs (1) and (2) of
subsection (a) shall apply beginning 6 months after the issuance by the
Secretary 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 who in good faith refuses to sell
or transfer ammonium nitrate to any person, or who in good faith
discloses to the Department or to appropriate law enforcement
authorities an actual or attempted purchase or transfer, 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 be immune from civil liability
arising from that refusal to sell ammonium nitrate or from making that
disclosure.
``(b) Limitation.--Subsection (a) shall not be construed to apply
with respect to any refusal to sell or disclosure--
``(1) that violates--
``(A) title VII of the Civil Rights Act of 1964 (42
U.S.C. 2000e et seq); or
``(B) the Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.); or
``(2) made on the basis that the person seeking purchase or
transfer of ammonium nitrate is a veteran or member of the
armed forces of the United States.
``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
within six months after the date of the enactment of this
subtitle; and
``(2) issue a final rule implementing this subtitle within
one year after such date of enactment.
``SEC. 899J. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to the Secretary such sums
as may be necessary to carry out this subtitle for fiscal years 2007
through 2011.''.
(b) Clerical Amendment.--The table of contents in section 1(b) of
such Act is amended by adding at the end of the items relating to title
VIII the following new items:
``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.''.
Amend the title so as to read:
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.
Purpose and Summary
The purpose of H.R. 1680 is 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.
Background and Need for Legislation
Ammonium nitrate is a highly effective and widely used
agricultural fertilizer, but may also be utilized to create
explosives employed in carrying out deadly terrorist attacks.
Ammonium nitrate fertilizer is widely available, inexpensive,
and relatively easy to manipulate into explosive form. It has
been the explosive material of choice in a number of acts and
attempted acts of terrorism. These include: the 1995 bombing of
the Alfred P. Murrah building in Oklahoma City, Oklahoma; the
1998 United States embassy bombings in United Republic of
Tanzania and Republic of Kenya; the November 2003 bombings in
Istanbul, Republic of Turkey; planned attacks on the United
States embassy in the Republic of Singapore and the United
States consulate in Karachi, the Islamic Republic of Pakistan,
which were foiled by law enforcement authorities; and most
recently, the suspected Toronto, Canada-based bomb plot
thwarted by the Royal Canadian Mounted Police in June 2006.
While the sale of ammonium nitrate based explosives are
regulated by the Bureau of Alcohol, Tobacco, Firearms and
Explosives, the sale of ammonium nitrate based fertilizers is
not currently subject to Federal regulations. A handful of
States, including New York, California, New Jersey, Nevada,
Oklahoma, Missouri, South Carolina, Maryland, Michigan and
Iowa, have enacted laws regulating the sale of ammonium nitrate
based fertilizers, but there is currently no Federal nationwide
requirement to record or monitor such transactions.
This legislation is needed to create a nationwide, minimum
standard for regulating the sale of ammonium nitrate based
fertilizers nationwide that could be used in terrorist acts,
without unduly burdening the agricultural sector's access to
ammonium nitrate fertilizer for farming and other legitimate
agricultural purposes. This legislation will aid law
enforcement counterterrorism efforts by creating a paper trail
for crimes involving purchases of ammonium nitrate and will
also support honest retailers in their efforts to prevent
terrorism.
Hearings
No hearings were held in the 110th Congress.
On December 14, 2005, the Subcommittee on Prevention of
Nuclear and Biological Attack held a legislative hearing on
H.R. 3197. The Subcommittee received testimony from Dr. Jimmie
C. Oxley, Professor of Chemistry, University of Rhode Island;
Mr. James W. McMahon, Director, New York State Office of
Homeland Security; Mr. Gary W. Black, President, Georgia
Agribusiness Council, Inc.; Mr. William Paul O'Neill, Jr.,
President, International Raw Materials, testifying on behalf of
Agricultural Retailers Association; and Mr. Carl Wallace, Plant
Manager, Terra Mississippi Nitrogen, Inc., testifying on behalf
of The Fertilizer Institute.
Committee Consideration
H.R. 1680 was introduced by Mr. Thompson of Mississippi,
Mr. King of New York, Mr. Langevin, Mr. McCaul of Texas, Mr.
Etheridge, Mr. Dent, Ms. Loretta Sanchez of California, and Ms.
Jackson-Lee of Texas on March 26, 2007, and referred to the
Committee on Homeland Security. Within the Committee on
Homeland Security, H.R. 1680 was referred to the Subcommittee
on Emerging Threats, Cybersecurity, and Science and Technology.
On March 28, 2007, the Subcommittee on Emerging Threats,
Cybersecurity, and Science and Technology considered H.R. 1680,
and ordered the measure forwarded to the Full Committee for
consideration with a favorable recommendation, without
amendment.
On April 17 and 26, 2007, the Full Committee on Homeland
Security considered H.R. 1680 and on April 26, 2007, ordered
the measure favorably reported to the House, amended, by voice
vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto.
The Committee on Homeland Security met, pursuant to notice,
in open markup session, a quorum being present, on April 17 and
26, 2007, to consider H.R. 1680. The Committee favorably
ordered H.R. 1680 to be reported to the House, as amended, by
voice vote.
A unanimous consent request by Mr. Thompson to amend the
title so as to read: ``H.R. 1680, to authorize the Secretary of
Homeland Security to regulate the sale of ammonium nitrate to
prevent and deter the acquisition of ammonium nitrate by
terrorists, and for other purposes.''; was not objected to.
The Committee adopted the bill, as amended, by voice vote.
The following amendments were offered:
An amendment offered by Mr. Thompson (#1), page 2, strike
lines 18 through 20 and insert a new subsection (2); page 2,
strike lines 21 through 23 and insert a new section (3); page
3, strike lines 1 through 4 and insert a new section entitled
``Sec. 899B. Regulation of the Sale and Transfer of Ammonium
Nitrate.''; page 5, line 16, strike ``of ownership''.; page 5,
line 23 strike ``that''.; page 5, line 24, strike ``shall'' and
insert ``to''; page 5, strike lines 3 through 6 and insert the
following ``subsection (c) or (d) of each person that takes
possession of ammonium nitrate from the owner of an ammonium
nitrate facility, in a manner prescribed by the Secretary.'';
page 9, line 18, strike ``purchases'' both places it occurs and
insert ``purchases or transfers''.; page 9, lines 21 and 22,
strike ``purchase or attempted purchase'' and insert ``purchase
or transfer or attempted purchase or transfer''.; Page 11, at
the end of line 4, add the following: ``Upon receipt of such
report, the relevant Federal authorities shall inform State,
local, and tribal law enforcement entities as appropriate.''.;
Page 11, strike lines 5 through 14 and insert a new section
``Sec. 899F. Prohibitions and Penalty.''; Page 12, line 25,
after ``terrorism'' insert ``or for other illicit purposes''.;
and to make corrections to the table of contents; was AGREED TO
by voice vote.
An amendment offered by Mrs. Christensen (#2), on page 5,
line 9, before the period insert ``and the intended use of
ammonium nitrate to be purchased by the applicant.''; was
AGREED TO by voice vote.
An amendment offered by Ms. Brown-Waite (#3), on page 5,
line 17, strike ``three-year period'' and insert ``two year
period''.; was AGREED TO by voice vote.
An amendment offered by Mr. King (#4), Page 12, after line
14, insert a new subsection entitled ``Sec. 899G. Protection
from Civil Liability.'' Page 12, line 16, strike ``Nothing''
and insert ``Except as provided in section 899G, nothing''. And
to make additional confirming changes. was AGREED TO by voice
vote.
An amendment offered by Mr. Lungren (#5), to insert at the
end of the proposed section 899B new subsections entitled ``(g)
Check of Terrorist Watch Lists.''; was WITHDRAWN by unanimous
consent. A unanimous consent request by Mr. Lungren to withdraw
his amendment, was not objected to.
An amendment offered by Mr. Lungren (#6), on page 3, line
8, insert after ``The Secretary'' the following: ``, in
consultation with the heads of appropriate Federal departments
and agencies, including the Secretary of Agriculture,''. Insert
at the end of the proposed section 899B a new subsection ``(g)
Registration Procedures and Check of Terrorist Watch List.'';
on page 12, lines 11 through 12, strike ``ON OWNER OF
FACILITIES''.; and on page 12, line 12, strike ``Subsection
(a)(2)'' and insert ``Paragraphs (1) and (2) of subsection
(a)''.; was AGREED TO by voice vote.
A motion by Mr. Thompson to authorized Staff to make any
technical and conforming changes, was not objected to.
A motion by Ms. Sanchez to authorize the Chairman to offer
such motions as may be necessary in the House to go to
Conference with the Senate on the bill just ordered reported by
this Committee, or on a similar Senate bill; was not objected
to.
The Subcommittee on Emerging Threats, Cybersecurity, and
Science and Technology met, pursuant to notice, in open markup
session, a quorum being present, on Thursday, March 29, 2007,
to consider H.R. 1680, and ordered the measure forwarded to the
Full Committee for consideration, without amendment, by voice
vote.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee has held oversight
hearings and made findings that are reflected in this report.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
1680, the Secure Handling of Ammonium Nitrate Act of 2007,
would result in no new or increased budget authority,
entitlement authority, or tax expenditures or revenues.
Congressional Budget Office Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 21, 2007.
Hon. Bennie G. Thompson,
Chairman, Committee on Homeland Security, House of Representatives,
Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1680, the Secure
Handling of Ammonium Nitrate Act of 2007.
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), and Melissa Merrell (for the
impact on state, local, and tribal governments), and Amy Petz
(for the impact on the private sector).
Sincerely,
Peter R. Orszag.
Enclosure.
H.R. 1680--Secure Handling of Ammonium Nitrate Act of 2007
Summary: H.R. 1680 would authorize the Department of
Homeland Security (DHS) to regulate the handling and purchase
of ammonium nitrate. CBO estimates that implementing H.R. 1680
would cost $45 million over the 2008-2012 period, assuming
appropriation of the necessary amounts. Enacting the bill could
affect revenues, but we estimate that any such effects would
not be significant. Enacting H.R. 1680 would not affect direct
spending.
H.R. 1680 contains an intergovernmental mandate, as defined
in the Unfunded Mandates Reform Act (UMRA), because it would
preempt the authority of states to regulate the sale of
ammonium nitrate in a manner that is less stringent than the
requirements of this bill. However, CBO estimates that states
would incur little, if any, direct costs as a result of that
preemption; therefore, the annual threshold established in UMRA
($66 million in 2007, adjusted annually for inflation) would
not be exceeded.
H.R. 1680 would impose private-sector mandates, as defined
in UMRA, on owners of ammonium nitrate facilities and
purchasers of ammonium nitrate. CBO expects that the aggregate
direct cost of those mandates would fall below the annual
threshold established by UMRA for private-sector mandates ($131
million in 2007, adjusted annually for inflation).
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 1680 is shown in the following table.
The costs of this legislation fall within budget function 750
(administration of justice).
------------------------------------------------------------------------
By fiscal year, in millions of
dollars--
---------------------------------------
2008 2009 2010 2011 2012
------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level... 6 10 10 10 11
Estimated Outlays............... 5 9 10 10 11
------------------------------------------------------------------------
Basis of estimate: CBO estimates that implementing H.R.
1680 would have discretionary costs of $45 million over the
2008-2012 period. For this estimate, CBO assumes that the
necessary amounts will be appropriated by the start of each
fiscal year and that spending will follow historical patterns
for similar activities. In addition, CBO estimates that the
bill would have an insignificant effect on revenues.
Spending subject to appropriation
H.R. 1680 would authorize DHS to regulate the handling and
purchase of ammonium nitrate. The bill would require producers,
sellers, and certain purchasers of ammonium nitrate to register
with DHS and would make producers and sellers maintain certain
sales records. H.R. 1680 would direct DHS to periodically
inspect and audit those records.
Using information from industry associations, CBO estimates
that there are about 2,000 producers and sellers of ammonium
nitrate in the United States. Based on the number of personnel
employed by the Bureau of Alcohol, Tobacco, Firearms, and
Explosives to inspect handlers of firearms and explosives, CBO
expects that DHS would need to hire about 60 people to carry
out field inspections and audits of ammonium nitrate producers
and sellers. Once fully phased in, CBO estimates that the costs
of those additional employees would reach $8 million annually,
including salaries, benefits, training, and support costs. For
this estimate, we assume that the new positions would be fully
staffed by fiscal year 2009.
In addition, we estimate that DHS would need to hire about
20 people to register and communicate with producers, sellers,
and purchasers of ammonium nitrate, write regulations, and
administer this new program. We estimate that costs for those
personnel would total $2 million annually.
H.R. 1680 would permit DHS to enter into agreements with
states to register and inspect producers, sellers, and
purchasers of ammonium nitrate. Under the bill, DHS would
reimburse states for their costs to carry out those
responsibilities if states chose to enter into such agreements
with DHS. CBO expects that the cost to carry out those
registrations and inspections would be similar whether
conducted by states or DHS.
Revenues
Enacting H.R. 1680 could increase collections of civil
fines for violations of the bill's provisions for the handling
and purchase of ammonium nitrate. CBO estimates that any
additional collections would not be significant because of the
small number of cases likely to be affected. Civil fines are
recorded as revenues in the federal budget.
Estimated impact on state, local, and tribal governments:
H.R. 1680 contains an intergovernmental mandate, as defined in
UMRA, because it would preempt the authority of states to
regulate the sale of ammonium nitrate in a manner that is less
stringent than the requirements of this bill. Currently, nine
states regulate the sale of ammonium nitrate, though none of
those regulations are the same as the provisions of this bill,
and all of those regulations would be preempted. This bill
would not require states to upgrade those regulations; rather,
the states could choose to stop regulating such sales and allow
the federal government to do so. CBO estimates the states would
incur little, if any, direct costs as a result of that
preemption; therefore, the annual threshold established in UMRA
($66 million in 2007, adjusted annually for inflation) would
not be exceeded.
The bill would allow states to enter into cooperative
agreements with the federal government to implement the
requirements of the bill, and would authorize the Secretary of
DHS to provide those states with sufficient funds to carry out
such duties. CBO cannot estimate how many states may opt to
implement those regulations, but assuming appropriation of the
necessary funds, any costs incurred by those states would be
paid for by the federal government.
Estimated impact on the private sector: H.R. 1680 would
impose private-sector mandates, as defined in UMRA, on owners
of ammonium nitrate facilities and purchasers of ammonium
nitrate. CBO expects that the aggregate direct cost of those
mandates would fall below the annual threshold established by
UMRA for private-sector mandates ($131 million in 2007,
adjusted annually for inflation).
The bill would direct the Department of Homeland Security
(DHS) to regulate the sale and transfer of ammonium nitrate,
which is commonly used in agriculture fertilizer. The bill
would require owners of ammonium nitrate facilities and
purchasers of ammonium nitrate to register with DHS. In
addition, those owners would be required to maintain a record
of each sale or transfer of ammonium nitrate for two years.
Further, any facility owner with knowledge of any theft or
unexplained loss of ammonium nitrate would be required to
report it to law enforcement authorities within one day of the
date on which the owner becomes aware of such an event.
The direct cost of the mandates on owners would be the cost
of registering with DHS, maintaining additional records for
sales, and filing a report in the case of theft or an
unexplained loss of ammonium nitrate. For purchasers, the
direct cost would be the cost of registering with DHS. Based on
information from industry sources, CBO expects that those
administrative costs would be small relative to the annual
threshold.
Estimate prepared by: Federal Costs: Mark Grabowicz; Impact
on State, Local, and Tribal Governments: Melissa Merrell;
Impact on the Private Sector: Amy Petz.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Statement of General Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, H.R. 1680, contains the following
general performance goals, and objectives, including outcome
related goals and objectives authorized.
The purpose of this legislation is 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. Pursuant to clause 3(c)(4) of rule XIII
of the Rules of the House of Representatives, H.R. 1680
contains the following general performance goals and
objectives, including outcome-related goals and objectives
authorized: H.R. 1680 adds a new section 899I to the Homeland
Security Act of 2002 (6 U.S.C. 361 et seq.), which requires the
Secretary of Homeland Security to issue regulations within six
months after the date of enactment of the Act, and to issue a
final rule within one year of the date of enactment.
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
In compliance with rule XXI of the Rules of the House of
Representatives, this bill, as reported, contains no
congressional earmarks, limited tax benefits, or limited tariff
benefits as defined in clause 9(d), 9(e), or 9(f) of the rule
XXI.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional authority for this legislation is provided in
article I, section 8, clause 1, which grants Congress the power
to provide for the common Defense of the United States.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section states the short title of the measure as the
``Secure Handling of Ammonium Nitrate Act of 2007.''
Section 2. Secure handling of ammonium nitrate
This section amends Title VIII of the Homeland Security Act
of 2002 (6 U.S.C. 361 et seq.) by inserting a new Subtitle J--
Secure Handling of Ammonium Nitrate:
Section 899A. Definitions
This section defines the terms ``ammonium nitrate,''
``ammonium nitrate facility,'' and ``ammonium nitrate
purchaser.''
Section 899B. Regulation of handling and purchase of ammonium nitrate
This section requires the Secretary of Homeland Security
(Secretary) to regulate the purchase and sale of ammonium
nitrate. It requires the Secretary of Homeland Security, in
consultation with the Secretary of Agriculture, to establish a
threshold percentage of ammonium nitrate in a substance for
purposes of the regulations through rulemaking. Moreover, this
provision requires the Secretary to establish a process to
issue registration numbers to owners of ammonium nitrate
facilities. This section requires collected registration
information to include: (1) the name, address, and telephone
number of each facility owned by that registrant; (2) as the
name and contact information of the person designated as the
point of contact by the owner of the facility; (3) the amount
of ammonium nitrate that is sold or transferred each year at
each facility; and (4) any other information that the Secretary
deems appropriate.
This section requires the Secretary to establish a process
to issue registration numbers to ammonium nitrate purchasers;
the registration information to be collected shall include the
name, address, and telephone number of the registrant.
In addition, this section requires each owner of an
ammonium nitrate facility to maintain records of sales or
transfers of ammonium nitrate for up to two years that include
the name, address, telephone number, registration number, and
intended use of each person taking ownership of ammonium
nitrate on their own behalf or as the stated agent of another,
as well as the date and quantity of the ammonium nitrate sold
or transferred. This provision also requires the owner of the
facility to verify the identity of the ammonium nitrate
purchaser or the purchaser's agent, in accordance with
procedures established by the Secretary.
This section allows the Secretary to exempt owners of
ammonium nitrate facilities and ammonium nitrate purchasers
from the registration requirement if they are regulated by the
Department of Justice for use of ammonium nitrate exclusively
for explosive purposes. It also requires the Secretary of
Homeland Security to consult with the Secretary of Agriculture,
States, and the appropriate private sector entities to ensure
that those who need to access ammonium nitrate are not unduly
burdened.
This provision generally prohibits the disclosure of
registration information; however, it allows disclosure to an
officer or individual with a need to know to perform the duties
of the officer or individual. Moreover, this section requires
the Secretary to process registration and check registrants
against the terrorist watch list and notify applicant of
issuance or denial not later than 72 hours after the Secretary
receives a completed application when practicable and unless
the Secretary decides more time is needed in the interest of
national security. It also requires the Secretary to establish
an expedited appeals process whereby--when practicable--appeals
are resolved not later than 72 hours after the Secretary
receives a complete request for appeal, unless the Secretary
determines, in the interest of national security, additional
time is necessary to resolve an appeal.
The Committee believes it is necessary to provide measures
to secure the transfer and purchase of ammonium nitrate
fertilizer while maintaining its availability and not unduly
burdening its legitimate use by agricultural professionals,
farmers, miners, quarry workers, and others that need access to
ammonium nitrate. This legislation tightens controls on access
to ammonium nitrate and strengthens the ability of the United
States to keep ammonium nitrate out of the hands of terrorists.
The Committee notes that terrorists find new and innovative
ways to circumvent security measures and to construct explosive
devices, and believes that the best way to adapt our security
policies to counteract the terrorists' efforts is to provide
the Secretary with the discretion to determine which ammonium
nitrate mixtures are subject to this legislation.
The Committee intends that the Secretary establish web-
based, toll-free telephone, and mail-in formats for
registration and appeal. Prospective ammonium nitrate
facilities and purchasers should be able to register and file
their appeals online, via telephone, or through the U.S. postal
system. The Committee understands that the 72 hours for
response begins tolling only from the time the Department of
Homeland Security receives the info via internet, telephone, or
mail.
Moreover, the Committee emphasizes that not only must an
owner verify the identity of a purchaser in a manner determined
appropriate by the Secretary, but that such identity
verification shall include confirmation of the agency
relationship where an agent takes possession of ammonium
nitrate for the buyer. The Committee also believes it is
important that the Department set out clear guidelines for
ammonium nitrate facilities and purchasers to facilitate a
clear understanding of what constitutes proper identification
for matching with registration numbers.
The Committee believes it in the interest of national
security to check the names and identifying information of
persons who sell, produce, purchase or otherwise take ownership
of (and possess) ammonium nitrate against those of persons
listed on the terrorist watch list. By referring to ``the
terrorist watch list,'' the Committee intends to provide the
Secretary with the discretion to utilize the Terrorist
Screening Database (TSDB) and any other terrorist watch list
derivative of TSDB that is most appropriate for carrying out
the Secretary's obligation under this section to prevent
potential terrorists from obtaining access to ammonium nitrate.
The Committee notes that the Department's experience in
checking aviation passengers and against terrorist watch lists
shows that vast majority of checks can be completed quickly and
without imposing unnecessary delays on the traveling public.
The Committee recognizes that additional time may be necessary
where paper applications are submitted and sent through the
U.S. postal system.
The Committee wishes to emphasize that the Secretary is
directed to take steps to maximize the number of registration
applications processed during the 6-month period following the
issuance of the final regulations, when the 72-hour processing
requirements do not apply. The Committee believes that
encouraging registration during this period will serve to
minimize the burden on the private sector and will reduce the
impact on the Department in processing the vast majority of
applications.
Section 899C. Inspection and auditing of records
This section requires the Secretary of Homeland Security to
establish a process for periodic inspection and auditing of
records of the sales and transfers of ammonium nitrate.
Section 899D. Administrative provisions
This section gives the Secretary of Homeland Security the
discretion to enter into a cooperative agreement with the
Secretary of Agriculture or the head of a State department of
agriculture, in consultation with the State agency responsible
for homeland security, and directs the Secretary to cooperate
with the State agencies or their designees, wherever possible,
in enforcing this law.
This provision allows the Secretary to delegate authority
to the States to assist in the administration and enforcement
of this law. It requires the Secretary to delegate this
authority to a State where the Governor requests that it be
delegated and the Secretary determines that the State is
capable of satisfactorily carrying out administration and
enforcement. This section requires the Secretary to provide
sufficient funds to each State that accepts the delegation of
these functions, subject to the availability of appropriations.
This section requires the Secretary to make guidance
available to each owner of an ammonium nitrate facility that
covers how to identify suspicious or attempted suspicious
purchases and what steps to take to in such cases, including
the exercise of the right to decline a sale. This section also
directs the Secretary to leverage any relevant materials and
programs to disseminate this guidance, to the extent
practicable. This section requires the Secretary to make
materials available for display at sales outlets that inform
prospective purchasers about the recordkeeping requirement and
the penalties for violations.
The Committee observes that each State, through the
Department of Agriculture or a Land Grant University, maintains
a plant food office with a plant food control official whose
primary responsibility is to register fertilizer products that
are to be sold in that State. The plant food control official
has responsibility for inspecting facilities that sell
fertilizer in order to ensure the efficacy of the products
sold. A similar official exists in each State through the
Department of Agriculture for pesticide sales. The
Environmental Protection Agency (EPA) has delegated authority
to the state Departments of Agriculture for implementation of
Federal Insecticide, Fungicide, and Rodenticide Act of 1972
(FIFRA) (7 U.S.C. 136 et seq.) regulations for restricted-use
pesticides. It is in this spirit that the Committee encourages
the Department to enter into cooperative agreements with State
agricultural departments.
In addition, the Committee strongly suggests that the
Department coordinate with the Department of Agriculture and
agriculture stakeholders to develop clear, informative
materials to publicize the new registration process and
requirements. The fertilizer industry, in partnership with the
Department, State departments of agriculture, and the Bureau of
Alcohol, Tobacco, Firearms, and Explosives, has a public
awareness campaign entitled, ``Be Aware for America.'' These
brochures and posters have been widely distributed to
agricultural retailers and law enforcement agencies. The
Committee intends that the Department also work with the
fertilizer industry and State departments of agriculture to
update such materials to include the relevant requirements
established in this legislation.
Section 899E. Theft reporting requirement
This section requires owners of ammonium nitrate facilities
and their staff to report all thefts and unexplained losses of
ammonium nitrate to the appropriate Federal law enforcement
authorities within one calendar day.
Section 899F. Prohibitions and penalty
This section prohibits the purchase, sale, or transfer of
ammonium nitrate without registration and provides for the
assessment of a civil penalty of up to $50,000 per violation.
In determining the amount of the civil penalty, this provision
directs the Secretary to consider the nature and circumstances
of the violation, including any history of prior violations.
This section also prohibits the assessment of a civil penalty
unless the person charged with the violation has been given
notice and an opportunity for a hearing in the community where
the person lives.
The Committee intends that only purchasers who actually
take physical possession of ammonium nitrate or purchasers who
deploy an agent to take possession of ammonium nitrate on their
behalf are required to register with the Department. In many
instances, the ammonium nitrate facility provides agricultural
services whereby the facility applies or spreads ammonium
nitrate. The Committee intends that purchasers who use the
services of a registered ammonium nitrate facility to custom-
apply ammonium nitrate do not require registration.
Section 899G. Protection from civil liability
This section provides for immunity from civil liability
arising from the refusal to sell ammonium nitrate for an owner
of an ammonium nitrate facility who refuses to sell or transfer
ammonium nitrate based upon a reasonable belief that the person
is seeking purchase or transfer of ammonium nitrate to be
employed in an act of terrorism. This subsection does not apply
to refusals to sell that violate the Civil Rights Act (P.L. 88-
352, 78 Stat. 241, July 2, 1964) or the Americans with
Disabilities Act (42 U.S.C. Sec. 12101), nor does it apply to
refusals made on the basis that a person seeking purchase or
transfer is a veteran or member of the armed forces of the
United States.
The Committee desires to change the culture surrounding the
sale and purchase of ammonium nitrate so that sellers and
purchasers alike understand that they are handling a product
that can be used as a weapon of terror. In creating this
heightened sense of awareness about the danger posed by
ammonium nitrate in the hands of terrorists, we thought it
prudent to protect sellers of ammonium nitrate from civil
liability when they in good faith: (1) refuse to sell or
transfer ammonium nitrate to a potential purchaser; or (2)
disclose ammonium nitrate purchasing activity to the Department
of Homeland Security or appropriate law enforcement entities.
This civil liability protection is needed to enable ammonium
nitrate sellers and transferors to feel confident there will be
no legal ramifications should they refuse to sell ammonium
nitrate when they see red flags, such as when a customer
attempts to purchase ammonium nitrate out of season. It also
encourages retailers to disclose suspect purchases or attempted
purchases without fear of civil liability. To qualify for the
civil liability protection, such refusal and disclosure must be
made in good faith and be based upon a reasonable belief that
the subject person may use ammonium nitrate to engage in
terrorist activity or may otherwise utilize ammonium nitrate
for unlawful purposes. This provision encourages the ``if you
see something, say something'' approach to securing the
homeland.
Section 899H. Preemption of other laws
This section clarifies that the regulations required under
this law will not affect any other regulations issued by any
other agency of the Federal government. Moreover, this
provision clarifies that the regulations required under this
law preempt State laws that are inconsistent, except where a
State law provides additional protections against the
acquisition of ammonium nitrate by terrorists.
Section 899I. Deadlines for regulations
This section requires the Secretary to issue proposed
regulations within six months after the date of enactment of
this Act and to issue a final rule within one year of the date
of enactment.
Section 899J. Authorization of appropriations
This section authorizes for appropriation such funds as may
be necessary to carry out this subsection for the years 2007
through 2011.
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 italic, existing law in which no change is
proposed is shown in roman):
HOMELAND SECURITY ACT OF 2002
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) * * *
(b) Table of Contents.--The table of contents for this Act is
as follows:
* * * * * * *
TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL;
UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS
Subtitle A--Coordination with Non-Federal Entities
Sec. 801. Office for State and Local Government Coordination.
* * * * * * *
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.
* * * * * * *
TITLE VIII--COORDINATION WITH NON-FEDERAL ENTITIES; INSPECTOR GENERAL;
UNITED STATES SECRET SERVICE; COAST GUARD; GENERAL PROVISIONS
* * * * * * *
Subtitle J--Secure Handling of Ammonium Nitrate
SEC. 899A. DEFINITIONS.
In this subtitle, the following definitions apply:
(1) The term ``ammonium nitrate'' means--
(A) solid ammonium nitrate that is chiefly
the ammonium salt of nitric acid and contains
not less than 33 percent nitrogen by weight;
and
(B) any mixture containing a percentage of
ammonium nitrate that is equal to or greater
than the percentage determined by the Secretary
under section 899B(b).
(2) The term ``ammonium nitrate facility'' means any
entity that produces, sells, or otherwise transfers
ownership of, or provides application services for,
ammonium nitrate.
(3) 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.--The Secretary, in
consultation with the heads of appropriate Federal departments
and agencies, including the Secretary of Agriculture, shall,
through notice and comment and by no later than 90 days after
the date of the enactment of this subtitle, establish a
threshold percentage for ammonium nitrate in a substance. If a
substance contains a percentage of ammonium nitrate that is
equal to or greater than the percentage established by the
Secretary, the substance shall be treated as ammonium nitrate
for the purposes of this subtitle.
(c) Registration of Owners of Ammonium Nitrate Facilities.--
(1) Registration.--The Secretary shall establish a
process by which--
(A) any person who is the owner of an
ammonium nitrate facility is required to
register with the Department; and
(B) upon such registration, such person is
issued a registration number for purposes of
this subtitle.
(2) Registration information.--The Secretary shall
require that each applicant for registration as the
owner of an ammonium nitrate facility must submit to
the Secretary--
(A) the name, address, and telephone number
of each ammonium nitrate facility owned by the
applicant;
(B) the name of the person designated by the
owner of the ammonium nitrate facility as the
point of contact of such facility, for purposes
of this subtitle;
(C) for each such facility, the amount of
ammonium nitrate that is sold or transferred
during each year; and
(D) such other information as the Secretary
may determine is appropriate.
(d) Registration of Ammonium Nitrate Purchasers.--
(1) Registration.--The Secretary shall establish a
process by which--
(A) any person who seeks to be an ammonium
nitrate purchaser is required to register with
the Department; and
(B) upon such registration, such person is
issued a registration number for purposes of
this subtitle.
(2) Registration information.--The Secretary shall
require that each applicant for registration under this
subsection as a prospective ammonium nitrate purchaser
must submit to the Secretary the name, address, and
telephone number of the applicant and the intended use
of ammonium nitrate to be purchased by the applicant.
(e) Records.--
(1) Maintenance of records.--The Secretary shall
require the owner of an ammonium nitrate facility
engaged in selling or transferring ammonium nitrate
to--
(A) maintain a record of each sale or
transfer of ammonium nitrate, during the two-
year period beginning on the date of such sale
or transfer; and
(B) include in such record the information
described in paragraph (2).
(2) Specific information required.--For each such
sale or transfer, the Secretary shall require the owner
of an ammonium nitrate facility to--
(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 from the owner
of an ammonium nitrate facility, in a manner
prescribed by the Secretary;
(B) if applicable, record the name, address,
and telephone number of each individual who
takes possession of the ammonium nitrate on
behalf of the person referred to in
subparagraph (A), at the point of sale;
(C) record the date and quantity of ammonium
nitrate sold or transferred; and
(D) verify the identity of the persons
referred to in subparagraphs (A) and (B), as
applicable, in accordance with a procedure
established by the Secretary.
(3) Protection of information.--In maintaining
records in accordance with paragraph (1), the owner of
an ammonium nitrate facility shall take reasonable
actions to ensure the protection of the information
included in such records.
(f) Exemption for Explosive Purposes.--The Secretary may
exempt from this subtitle a person producing, selling, or
purchasing ammonium nitrate exclusively for use as an explosive
material under a license issued under chapter 40 of title 18,
United States Code.
(g) Consultation.--In carrying out this section, the
Secretary shall consult with the Secretary of Agriculture,
States, and appropriate private sector entities, to ensure that
the access of agricultural producers to ammonium nitrate is not
unduly burdened.
(h) Data Confidentiality.--
(1) In general.--Notwithstanding section 552 of title
5, United States Code, or the USA PATRIOT ACT (Public
Law 107-56; 115 Stat. 272), and except as provided in
paragraph (2), the Secretary may not disclose to any
person any information obtained under this subtitle.
(2) Exception.--The Secretary may disclose any
information obtained by the Secretary under this
subtitle to an officer or employee of the United
States, or a person that has entered into a contract
with the United States, who has a need to know the
information to perform the duties of the officer,
employee, or person, or to a State agency pursuant to
section 899D, under appropriate arrangements to ensure
the protection of the information.
(i) Registration Procedures and Check of Terrorist Watch
List.--
(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 provided for in section 899F(e).
(2) Check of terrorist watch list.--
(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 on
the terrorist watch list.
(B) Authority to deny registration number.--
If the person's identifying information appears
on the terrorist watch list and the Secretary
determines such person may pose a threat to
national security, 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 provided for 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 persons of
the status of their application 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 persons denied registration
numbers under this subtitle.
(5) Restrictions on use and maintenance of
information.--
(A) In general.--Information obtained by the
Secretary under this section may not be made
available to the public.
(B) Use of certain information.--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. 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 watch list.--
(A) Re-checks.--The Secretary shall, as
appropriate, re-check persons provided a
registration number pursuant to this subtitle
against the terrorist watch list, 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 such section or for the purpose of deterring or
preventing the misappropriation or use of ammonium nitrate in
an act of terrorism.
SEC. 899D. ADMINISTRATIVE PROVISIONS.
(a) Cooperative Agreements.--The Secretary--
(1) may enter into a cooperative agreement with the
Secretary of Agriculture, or the head of any State
department of agriculture or its designee involved in
agricultural regulation, in consultation with the State
agency responsible for homeland security, to carry out
the provisions of this subtitle; and
(2) wherever possible, shall seek to cooperate with
State agencies or their designees that oversee ammonium
nitrate facility operations when seeking cooperative
agreements to implement the registration and
enforcement provisions of this subtitle.
(b) Delegation.--
(1) Authority.--The Secretary may delegate to a State
the authority to assist the Secretary in the
administration and enforcement of this subtitle.
(2) Delegation required.--At the request of a
Governor of a State, the Secretary shall delegate to
the State the authority to carry out functions under
sections 899B and 899C, if the Secretary determines
that the State is capable of satisfactorily carrying
out such functions.
(3) Funding.--Subject to the availability of
appropriations, if the Secretary enters into an
agreement with a State under this subsection to
delegate functions to the State, the Secretary shall
provide to the State sufficient funds to carry out the
delegated functions.
(c) Provision of Guidance and Notification Materials to
Ammonium Nitrate Facilities.--
(1) Guidance.--The Secretary shall make available to
each owner of an ammonium nitrate facility registered
under section 899B(c)(1) guidance on--
(A) the identification of suspicious ammonium
nitrate purchases or 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) any such additional subjects as the
Secretary determines are appropriate to prevent
the misappropriation or use of ammonium nitrate
in an act of terrorism.
(2) Use of materials and programs.--In providing
guidance under this subsection, the Secretary shall, to
the extent practicable, leverage any relevant materials
and programs.
(3) Notification materials.--
(A) In general.--The Secretary shall make
available materials suitable for posting at
ammonium nitrate facilities where ammonium
nitrate is sold.
(B) Design of materials.--Such materials
shall be designed to notify prospective
ammonium nitrate purchasers of--
(i) the record-keeping requirements
under section 899B; and
(ii) the penalties for violating such
requirements.
SEC. 899E. THEFT REPORTING REQUIREMENT.
Any person who is required to comply with section 899B(e) who
has knowledge of the theft or unexplained loss of ammonium
nitrate shall report such theft or loss to the appropriate
Federal law enforcement authorities within one calendar day of
the date on which the person becomes aware of such theft or
loss. 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, unless such person is 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) Prohibitions.--No person shall--
(1) buy and take possession of ammonium nitrate
without a registration number required under subsection
(c) or (d) of section 899B;
(2) own or operate an ammonium nitrate facility
without a registration number required under section
899B(c); or
(3) fail to comply with any requirement or violate
any other prohibition under this subtitle.
(c) 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.
(d) 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.
(e) 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.
(f) Delay in Application of Prohibition.--Paragraphs (1) and
(2) of subsection (a) shall apply beginning 6 months after the
issuance by the Secretary 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 who in good faith
refuses to sell or transfer ammonium nitrate to any person, or
who in good faith discloses to the Department or to appropriate
law enforcement authorities an actual or attempted purchase or
transfer, 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 be immune from civil liability arising
from that refusal to sell ammonium nitrate or from making that
disclosure.
(b) Limitation.--Subsection (a) shall not be construed to
apply with respect to any refusal to sell or disclosure--
(1) that violates--
(A) title VII of the Civil Rights Act of 1964
(42 U.S.C. 2000e et seq); or
(B) the Americans with Disabilities Act of
1990 (42 U.S.C. 12101 et seq.); or
(2) made on the basis that the person seeking
purchase or transfer of ammonium nitrate is a veteran
or member of the armed forces of the United States.
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 within six months after the date of the
enactment of this subtitle; and
(2) issue a final rule implementing this subtitle
within one year after such date of enactment.
SEC. 899J. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary such
sums as may be necessary to carry out this subtitle for fiscal
years 2007 through 2011.
* * * * * * *
MINORITY VIEWS
Preventing the acquisition of ammonium nitrate for use as
an explosive in carrying out terrorist attacks has long been a
shared priority for the Committee on Homeland Security. While
ammonium nitrate is a widely used and highly effective
agricultural fertilizer, it can also be utilized to create high
yield explosives, and as a result, its acquisition by
terrorists poses a serious threat to homeland security. H.R.
1680, which is modeled on legislation originally considered
during the 109th Congress, creates a legal framework that
prevents terrorists from acquiring this dangerous material,
provides law enforcement with the requisite tools for
investigating ammonium nitrate incidents, and supports honest
retailers in their efforts to prevent terrorism without unduly
burdening the legitimate user's ability to access ammonium
nitrate.
The need for this legislation is clear. Ammonium nitrate
has been the explosive material of choice in a number of acts
and attempted acts of terrorism, including the 1995 bombing of
the Alfred P. Murrah Federal building in Oklahoma City,
Oklahoma; the 1998 United States embassy bombings in Tanzania
and Kenya; the Toronto, Canada-based bomb plot thwarted by the
Royal Canadian Mounted Police in June 2006; and, most recently,
the conspiracy of a London based-terrorist group to engage in
acts of terrorism using ammonium nitrate explosive devices
throughout the United Kingdom.
While the sale of ammonium nitrate based explosives is
regulated by the Bureau of Alcohol, Tobacco, Firearms and
Explosives, the sale of ammonium nitrate based fertilizers is
not currently subject to Federal regulations. A handful of
States, including New York, California, New Jersey, Nevada,
Oklahoma, Missouri, South Carolina, Maryland, and Iowa, have
enacted laws regulating the sale ammonium nitrate based
fertilizers, but there is currently no Federal nationwide
requirement to record or monitor such transactions. This
legislation is needed to create a nationwide standard for
regulating the sale and transfer of ammonium nitrate based
fertilizers.
The text of H.R. 1680 is derived from H.R. 3197, a
bipartisan bill which was introduced during the 109th Congress.
The Subcommittee on Prevention of Nuclear and Biological Attack
held a hearing during the 109th Congress to consider H.R. 3197,
discuss security measures appropriate for selling and
purchasing ammonium nitrate, and receive testimony on the
legislation from homeland security officials, as well as
affected industry and agricultural groups. The bill was later
marked up by the Subcommittee and the full Committee and
reported favorably to the House. Unfortunately, the session
ended before H.R. 3197 could be enacted.
We are pleased to see the Committee return to this
important issue early in this Congress, given the threat posed
by the unregulated accessibility to ammonium nitrate and its
history of use as a weapon of terror. During the months since
the Committee originally reported the measure, Members have
worked on a bipartisan basis to improve and strengthen the
bill, and to further our dialogue on the threat that the
unregulated sale and transfer of ammonium nitrate poses to
homeland security. In crafting the text of H.R. 1680, we worked
extensively with our Democrat colleagues to strike a balance
between the cost and burden upon industry, agriculture and the
consumer, and the enormous price to be paid in terms of lives
lost, property damage, and the diminished security of U.S.
citizens that could result from terrorist exploitation of
uncontrolled access to ammonium nitrate.
Overview and need for an ammonium nitrate purchaser registration
requirement
During negotiations with the Majority, Republican Members
insisted on a change to the bill requiring those who buy (or
otherwise take ownership interest in) and take possession of
ammonium nitrate (rather then just sellers and producers of
ammonium nitrate), to register with the Secretary of Homeland
Security. This provision enables the Department to track not
only those who sell ammonium nitrate, but anyone who buys and
possesses ammonium nitrate, so that the Department can
recognize suspect purchase patterns and readily locate those
responsible for such purchases. By tracking all transfers of
ammonium nitrate through use of a unique registration number,
H.R. 1680 now addresses the issue of a potential terrorist
buying limited amounts of ammonium nitrate from multiple retail
sources, as opposed to buying a large quantity from one retail
outlet, so as not to arouse suspicion. The result of adding the
purchaser registration requirement is that such purchases would
no longer go unnoticed. This change, insisted on by Republican
Members, is a substantial improvement to effectiveness of the
bill.
Registration number applicant check against the terrorist watch list
During consideration of H.R. 1680, we were pleased with the
Committee's adoption of three Republican amendments to further
strengthen the legislation and add an important prevention
element to the bill. Most notably, the Committee accepted an
amendment offered by Representative Daniel E. Lungren, which
requires the Secretary to run checks of applicants for
registration numbers required under this Act against the
terrorist watch list. Such a check is crucial to the
legislation's goal of preventing terrorist acts involving
ammonium nitrate. This proposal was initially resisted by many
Majority Members of the Committee who sought to delay the
implementation of such checks and instead request a study of
the issue. Given the immediacy of the threat posed by
uncontrolled access to ammonium nitrate. Republican Members
succeeded in convincing the Majority that waiting for a study
was imprudent and would not provide the terrorism prevention
element the bill lacked.
While considering this terrorist watch list amendment, some
Members of the Committee also voiced concerns about the
potential for mistaken matches or ``false hits'' against the
terrorists watch lists and the need for an expedited appeals
process for applicants for registration numbers who trigger a
watchlist match. The Majority's concern over false hits
indicates a fundamental misunderstanding of how such terror
watch lists check work. The Democrats repeatedly cited the
difficulty airline passengers face when their names are
mistaken matched to names on the terrorist watch list, and the
difficulties those travelers faced in ``removing'' their names
from the terrorist watch list. Mistaken matches or false hits
against the terrorist watch list for air travel passengers is
not uncommon because third parties (airlines) run those checks
using only a person's first initial and last name. By contrast,
checks for applicants for ammonium nitrate registration numbers
would be conducted by the Department, which would process
checks for applicants using full names and dates of birth or
other appropriate identifying information. Because the Lungren
amendment would authorize the Department to use additional
identifying information, the chances of a mistaken or false hit
is extremely small. To put the number of people who will be
affected by such false hits in perspective, we can look to the
Department's experience in 2005 when it checked HAZMAT
endorsement applicants against the terrorist watch list. Out of
2.7 million truck drivers screened against the terrorist watch
list, approximately 100 people were flagged as hits against the
list. Of those 100 people flagged, only about two dozen people
were withheld credentialing (many of those people had already
been arrested or deported due to terrorist ties), and the vast
majority of those 100 flagged were cleared. Since far fewer
than 2.7 million will be applying for DHS ammonium nitrate
registration numbers, the number of people who will be impacted
by false hits against the terrorist watch list will be
extremely small, and in fact it could affect no one at all.
The Democrats also articulated concerns that terrorist
watch list checks could slow the Department's issuance of
registration numbers to applicants and that this could prevent
farmers, especially small farmers, from immediately accessing
ammonium nitrate for their crops. These concerns are unfounded,
as the requirement for a registration number already slightly
delays farmers from accessing ammonium nitrate on a moment's
notice and because checks against the terrorist watch lists
would be conducted by the Department instantaneously as a
matter of normal application processing.
During the full Committee markup, when it became clear that
there was sufficient support in the Committee for
Representative Lungren's terrorist watch list amendment on both
sides of the aisle, the Majority abruptly adjourned the markup
over concerns about terrorist watch list checks slowing the
issuance of registration numbers and the appeals process. When
the Committee reconvened the markup nine days later,
Representative Lungren withdrew his original amendment and
offered a revised amendment, which the Committee adopted by
voice vote. This revised amendment maintains the same
requirement for the Secretary to perform terrorist watch list
checks before issuing a registration number, but imposes
general deadlines for the Secretary to process applications and
requires an expedited appeals process in the unlikely event
there is a mistaken hit against the terrorist watch list. The
deadlines are not absolute. The amendment provides the
Secretary with flexibility where such requirements may impact
national security or where meeting such deadlines are not
practicable given the sensitive nature of the required security
checks. The amendment also directs the Secretary to conduct
periodic rechecks of registrants against the terrorist watch
list and requires registration holders to update their
identifying information as appropriate.
H.R. 1680 provides that the requirement for ammonium
nitrate purchasers and handlers to hold registration numbers
does not take effect for six months after the issuance of final
regulations. To minimize the burdens on both the Department and
the private sector, the Lungren amendment directs the Secretary
to take steps to ensure the maximum number of registrations are
processed during this 6-month delay period when processing and
appeals deadlines are not applicable.
Civil liability protections for ammonium nitrate sellers
The Committee adopted an amendment offered by Ranking
Member Peter T. King to provide sellers of ammonium nitrate
immunity from civil liability when they in good faith: (l)
refuse to sell or transfer ammonium nitrate to a potential
purchaser; or (2) disclose ammonium nitrate purchasing activity
to the Department or appropriate law enforcement entities. This
civil liability protection is needed to enable ammonium nitrate
sellers and transferors to feel comfortable refusing the to
sell ammonium nitrate when they see red flags, such as when a
purchaser attempts to buy excessive quantities of ammonium
nitrate or buys ammonium nitrate out of season. It also
encourages retailers to disclose suspect purchases without fear
of civil liability. To qualify for the civil liability
protection, such refusal and disclosure must be made in good
faith and be based upon a reasonable belief that the subject
person may use ammonium nitrate to engage in terrorist activity
or may otherwise utilize ammonium nitrate for unlawful
purposes. This provision encourages the ``if you see something,
say something'' approach necessary to effectively engage the
private sector in securing the homeland.
Record-keeping requirement
The Committee adopted an amendment offered by
Representative Ginny Brown-Waite during the full Committee
markup, which changed the ammonium nitrate record keeping
requirement from three years to two years. This amendment helps
streamline record-keeping requirements for agricultural retail
outlets. Many ammonium nitrate sellers are also in the business
of selling restricted use pesticides, and, in many states, such
transactions are subject to a two-year, rather than three-year,
record-keeping requirement. This amendment is in keeping with
our intent for the legislation to minimize impact on the
agricultural sector where appropriate.
En bloc amendment
In addition to the three Republican amendments, we are
pleased that the Committee adopted the en bloc amendment
offered by Chairman Thompson. This amendment makes necessary
technical changes to the bill and includes important provisions
which make clear that regulations under this legislation would
apply to non-money ammonium nitrate transactions, and not just
to buy-sell transactions.
Peter T. King.
Christopher Shays.
Tom Davis.
Charles W. Dent.
Gus M. Bilirakis.
Lamar Smith.
Mark E. Souder.
Daniel E. Lungren.
Michael T. McCaul.
Ginny Brown-Waite.
David Davis.