[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1680 Engrossed in House (EH)]
110th CONGRESS
1st Session
H. R. 1680
_______________________________________________________________________
AN ACT
To authorize the Secretary of Homeland Security to regulate the sale of
ammonium nitrate to prevent and deter the acquisition of ammonium
nitrate by terrorists, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Secure Handling of Ammonium Nitrate
Act of 2007''.
SEC. 2. SECURE HANDLING OF AMMONIUM NITRATE.
(a) In General.--Title VIII of the Homeland Security Act of 2002 (6
U.S.C. 361 et seq.) is amended by adding at the end the following 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.''.
Passed the House of Representatives October 23, 2007.
Attest:
Clerk.
110th CONGRESS
1st Session
H. R. 1680
_______________________________________________________________________
AN ACT
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.