99–006

107TH CONGRESS REPORT " HOUSE OF REPRESENTATIVES ! 2d Session 107–658

ANTI-TERRORISM EXPLOSIVES ACT OF 2002

SEPTEMBER 17, 2002.—Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 

Mr. SENSENBRENNER, from the Committee on the Judiciary, 

submitted the following 

R E P O R T 

[To accompany H.R. 4864] 

[Including cost estimate of the Congressional Budget Office]

The Committee on the Judiciary, to whom was referred the bill 

(H.R. 4864) to combat terrorism and defend the Nation against terrorist acts, and for other purposes, having considered the same, reports favorably thereon with an amendment and recommends that 

the bill as amended do pass.

CONTENTS 

Page 

The Amendment ...................................................................................................... 1

Purpose and Summary ............................................................................................ 4

Background and Need for the Legislation ............................................................. 5

Hearings ................................................................................................................... 6

Committee Consideration ........................................................................................ 6

Vote of the Committee ............................................................................................. 6

Committee Oversight Findings ............................................................................... 6

Performance Goals and Objectives ......................................................................... 7

New Budget Authority and Tax Expenditures ...................................................... 7

Congressional Budget Office Cost Estimate .......................................................... 7

Constitutional Authority Statement ...................................................................... 11

Section-by-Section Analysis and Discussion .......................................................... 11

Changes in Existing Law Made by the Bill, as Reported ..................................... 14

Markup Transcript .................................................................................................. 20

The amendment is as follows: 

Strike all after the enacting clause and insert the following:

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Anti-Terrorism Explosives Act of 2002’’. 

SEC. 2. PERMITS FOR PURCHASERS OF EXPLOSIVES. 

(a) DEFINITIONS.—Section 841(j) of title 18, United States Code, is amended to 

read as follows: 

2

‘‘(j) ‘Permittee’ means any user of explosives for a lawful purpose, who has 

obtained a user permit or a limited permit under this chapter.’’. (b) PERMITS FOR PURCHASE OF EXPLOSIVES.—Section 842 of such title is amended— (1) in subsection (a)— (A) in paragraph (2), by striking ‘‘and’’; and 

(B) by striking paragraph (3) and inserting the following: ‘‘(3) other than a licensee or permittee, knowingly— ‘‘(A) to transport, ship, cause to be transported, or receive any explosive 

materials; or ‘‘(B) to distribute explosive materials to any person other than a licensee or permittee; or 

‘‘(4) who is a holder of a limited permit— ‘‘(A) to transport, ship, cause to be transported, or receive in interstate 

or foreign commerce any explosive materials; or ‘‘(B) to receive explosive materials from a licensee or permittee whose 

premises are located in the State of residence of the holder, except that the 

holder of a limited permit may so receive explosive materials on 4 or fewer 

occasions pursuant to regulations prescribed by the Secretary.’’; and 

(2) by striking subsection (b) and inserting the following: ‘‘(b) It shall be unlawful for any licensee or permittee knowingly to distribute 

any explosive materials to any person other than—

‘‘(1) a licensee; 

‘‘(2) a holder of a user permit; or 

‘‘(3) a holder of a limited permit who is a resident of the State where distribution is made and in which the transferor’s premises are located.’’. 

(c) LICENSES AND USER PERMITS.—Section 843(a) of such title is amended—

(1) in the 1st sentence—

(A) by inserting ‘‘or limited permit’’ after ‘‘user permit’’; and 

(B) by inserting ‘‘, including the names of and appropriate identifying 

information regarding all employees who will be authorized by the employer 

to possess explosive materials, as well as fingerprints and a photograph of 

each responsible person with respect to the applicant. In this section, the 

term ‘responsible person’ means, with respect to an applicant, an individual 

who has the power to direct the management and policies of the applicant 

pertaining to explosive materials’’ before the period; and 

(2) by striking the 3rd sentence and inserting ‘‘Each license or user permit 

shall be valid for no longer than 3 years from the date of issuance, and each 

limited permit shall be valid for no longer than 1 year from the date of 

issuance. Each license or permit shall be renewable upon the same conditions 

and subject to the same restrictions as the original license or permit (except 

that, in the case of the renewal of a limited permit, the verification requirement 

of subsection (b)(5) may be satisfied by inspection or such other means as the 

Secretary deems appropriate) and upon payment of a renewal fee not to exceed 

1⁄2 of the original fee.’’. 

(d) CRITERIA FOR APPROVING LICENSES AND PERMITS.—Section 843(b) of such 

title is amended—

(1) by striking paragraph (1) and inserting the following: 

‘‘(1) the applicant (or, if the applicant is a corporation, partnership, or association, each responsible person with respect to the applicant) is not a person 

who is prohibited from receiving, distributing, transporting, or possessing explosive materials under subsection (d) or (i) of section 842;’’; 

(2) by redesignating paragraphs (2) through (5) as paragraphs (3) through 

(6), respectively, and inserting after paragraph (1) the following: 

‘‘(2) none of the employees who will be authorized by the applicant to possess explosive materials in the course of their employment with the applicant 

is a person whose possession of explosives would be unlawful under section 

842(i);’’; 

(3) in paragraph (5) (as so redesignated)—

(A) by inserting ‘‘the Secretary has verified by inspection that’’ before 

‘‘the applicant’’; and 

(B) by striking ‘‘and’’ at the end; 

(4) by striking the period at the end of paragraph (6) (as so redesignated) 

and inserting ‘‘; and’’; and 

(5) by adding at the end the following: 

‘‘(7) in the case of a limited permit, the applicant has certified in writing 

that the applicant will not receive explosive materials on more than 4 different 

occasions during any 12-month period in which a limited permit issued to the 

applicant is in effect.’’. 

3

(e) DEADLINE FOR APPROVAL OR DENIAL OF APPLICATION.—Section 843(c) of such 

title is amended by striking ‘‘a period of forty-five days beginning on the date such’’

and inserting ‘‘90 days after the’’. 

(f) INSPECTION AUTHORITY.—Section 843(f) of such title is amended—

(1) in the 1st sentence—

(A) by striking ‘‘permittees’’ and inserting ‘‘holders of user permits’’; 

and 

(B) by inserting ‘‘licensees and permittees’’ before ‘‘shall submit’’; and 

(2) in the 2nd sentence, by striking ‘‘permittee’’ the first place it appears 

and inserting ‘‘holder of a user permit’’. 

(g) POSTING OF PERMITS.—Section 843(g) of such title is amended by inserting 

‘‘user’’ before ‘‘permits’’. 

(h) BACKGROUND CHECKS; CLEARANCES.—Section 843 of such title is amended 

by adding at the end the following: 

‘‘(h)(1) If the Secretary receives from an employer the name and other identifying information with respect to a responsible person or an employee who will be 

authorized by the employer to possess explosive materials in the course of employment with the employer, the Secretary shall determine whether possession of explosives by the responsible person or the employee, as the case may be, would be unlawful under section 842(i). In making the determination, the Secretary may take 

into account a letter or document issued under paragraph (2) of this subsection. 

‘‘(2)(A) If the Secretary determines that possession of explosives by the responsible person or the employee would not be unlawful under section 842(i), the Secretary shall notify the employer in writing or electronically of the determination and 

issue to the responsible person or the employee, as the case may be, a letter of clearance which confirms the determination. 

‘‘(B) If the Secretary determines that possession of explosives by the responsible 

person or the employee would be unlawful under section 842(i), the Secretary shall 

notify the employer in writing or electronically of the determination and issue to the 

responsible person or the employee, as the case may be, a document which confirms 

the determination, explains the grounds for the determination, provides information 

on how the disability may be relieved, and explains how the determination may be 

appealed.’’. 

(i) EFFECTIVE DATE.—The amendments made by this section shall take effect 

180 days after the date of enactment of this Act. 

(j) ELECTRONIC RECORDS.—Not later than one year after the effective date of 

this Act, the Secretary of the Treasury shall maintain an electronic record of each 

license, user permit, or limit permit issued or renewed under section 843 of title 18, 

United States Code, on or after one year after the effective date of this Act. 

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

(a) DISTRIBUTION OF EXPLOSIVE MATERIALS.—Section 842(d) of title 18, United 

States Code, is amended—

(1) by striking ‘‘or’’ at the end of paragraph (5); 

(2) by striking the period at the end of paragraph (6) and inserting ‘‘or has 

been committed to a mental institution;’’; and 

(3) by adding at the end the following: 

‘‘(7) is an alien, other than a lawful permanent resident alien (as defined 

in section 101(a)(20) of the Immigration and Nationality Act) or an alien described in subsection (q)(2) of this section; 

‘‘(8) has been discharged from the Armed Forces under dishonorable conditions; or 

‘‘(9) having been a citizen of the United States, has renounced his citizenship.’’. 

(b) POSSESSION OF EXPLOSIVES.—Section 842(i) of such title is amended—

(1) by striking ‘‘or’’ at the end of paragraph (3); and 

(2) by inserting after paragraph (4) the following: 

‘‘(5) who, is an alien, other than a lawful permanent resident alien (as defined in section 101(a)(20) of the Immigration and Nationality Act) or an alien 

described in subsection (q)(2); 

‘‘(6) who has been discharged from the Armed Forces under dishonorable 

conditions; or 

‘‘(7) who, having been a citizen of the United States, has renounced his citizenship;’’. 

(c) PROVISIONS RELATING TO LEGAL ALIENS.—Section 842 of such title is amended by adding at the end the following: 

‘‘(q) PROVISIONS RELATING TO LEGAL ALIENS.—

4

‘‘(1) DEFINITION.—In this subsection, the term ‘alien’ has the same meaning 

as in section 101(a)(3) of the Immigration and Nationality Act (8 U.S.C. 

1101(a)(3)). 

‘‘(2) EXCEPTIONS.—An alien is described in this paragraph if the alien—

‘‘(A) is—

‘‘(i) in lawful nonimmigrant status; 

‘‘(ii) a refugee admitted under section 207 of the Immigration and 

Nationality Act (8 U.S.C. 1157); or 

‘‘(iii) in asylum status under section 208 of the Immigration and 

Nationality Act (8 U.S.C. 1158); and 

‘‘(B) is—

‘‘(i) a law enforcement officer of a foreign country designated in 

writing by the Attorney General as a country covered by this subparagraph, and is entering the United States on official law enforcement 

business; 

‘‘(ii) a person having the authority to direct or cause the direction 

of the management and policies of a corporation, partnership, or association licensed under section 843(a), and shipping, transporting, possessing or receiving explosive materials relates to the authority; or 

‘‘(iii) a member of the armed forces of a foreign country that is a 

member of the North Atlantic Treaty Organization, Australia, New 

Zealand, Japan, Republic of Korea, or other foreign country designated 

in writing by the Attorney General, after consultation with the Secretary of Defense, as a country covered by this subparagraph (whether 

or not admitted in a non-immigrant status), who is present in the 

United States under military orders for training or other authorized 

purpose, and the shipping, transporting, possessing, or receiving explosive materials is in furtherance of the military purpose; 

‘‘(iv) lawfully present in the United States in cooperation with the 

Director of Central Intelligence, and the shipment, transportation, receipt, or possession of the explosive materials is in furtherance of such 

cooperation.’’. 

(d) EXPANSION OF AUTHORITY TO PROVIDE RELIEF FROM DISABILITIES.—Section 

845(b) of such title is amended—

(1) by striking ‘‘had been indicted for or convicted of a crime punishable by 

imprisonment for a term exceeding one year’’ and inserting ‘‘is prohibited from 

shipping, transporting, receiving, or possessing any explosive’’; 

(2) by striking ‘‘of such indictment or conviction’’ and inserting ‘‘of the applicable provision of section 842(i)’’; 

(3) by striking ‘‘the indictment or conviction’’ and inserting ‘‘the applicability of such provision’’; 

(4) by striking ‘‘of indictment or conviction’’ and inserting ‘‘of such applicability’’; and 

(5) by striking ‘‘by such indictment or conviction’’ and inserting ‘‘by such applicability’’. 

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

Section 843 of title 18, United States Code, is further amended by adding at 

the end the following: 

‘‘(i) A person who manufactures or imports explosive materials or ammonium 

nitrate shall, as required by letter issued by the Secretary, furnish samples of the 

explosive materials or ammonium nitrate, information on chemical composition of 

the explosive materials or ammonium nitrate, and any other information that the 

Secretary determines is relevant to the identification of the explosive materials or 

to identification of the ammonium nitrate. The Secretary shall, by regulation, provide for the reimbursement of the fair market value of samples furnished pursuant 

to this subsection, as well as the reasonable costs of shipment.’’. 

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

Section 844(f)(1) of title 18, United States Code, is amended by inserting ‘‘or any 

institution or organization receiving Federal financial assistance,’’ before ‘‘shall’’.

PURPOSE AND SUMMARY

H.R. 4864, the ‘‘Anti-Terrorism Explosives Act of 2002,’’ provides 

tighter security for explosive materials and increased security 

measures for purchasers and possessors of explosives by requiring 

5

all persons who wish to obtain explosives, even for limited use, to 

obtain a permit. 

The legislation would expand the list of persons who are prohibited from receiving explosive materials to make these laws conform 

with the list of persons restricted from possessing firearms. Additionally, the bill requires companies that apply for a permit to possess, use or transfer explosives to submit a list to the Bureau of 

Alcohol, Tobacco and Firearms (ATF) of all employees who have responsibility for, or will have possession of, explosive materials to 

verify that these individuals are not on the list of persons who are 

prohibited from purchasing or possessing explosives. Explosive 

manufacturers will also be required, under this legislation, to provide a sample of their explosives to facilitate the tracking of these 

materials for ATF. Finally, the bill would expand Federal jurisdiction over intentional fires or explosions occurring on Federal property to include institutions or organizations receiving Federal financial assistance. 

BACKGROUND AND NEED FOR THE LEGISLATION

Since September 11, 2001, our country has been on high alert. 

Americans have become accustomed to frequent notifications about 

possible terrorist threats and increased security throughout our society. Congress has passed legislation requiring background checks 

for airport workers, hazmat truck drivers, and researchers working 

with anthrax. These precautions are necessary to prevent certain 

types of terrorist attacks. However, there are additional precautions that have not been taken that would help to prevent 

threats from explosives. This legislation includes many of these 

precautions. 

In recent years, our country has seen an increase in terrorist activities. In 1993, terrorists detonated explosives at the World Trade 

Center. Terrorists detonated explosives in the Murrah Federal 

Building in Oklahoma City in 1995. This year, Richard Reid was 

arrested after trying to detonate a bomb in his shoe on an aircraft. 

The Attorney General has stated that the suicide bombings and car 

bombings could be the next line of attack by terrorists in the 

United States. On June 10, 2002, the Attorney General announced 

that the FBI had uncovered a terrorist plot to detonate a ‘‘dirty 

bomb’’—a mixture of common explosives and radioactive materials 

in an United States metropolitan area. 

Currently, individuals seeking to purchase explosives in intrastate commerce are not required to obtain a permit. This legislation 

requires all persons purchasing explosives to obtain a permit from 

ATF. This will allow ATF to perform background checks on all applicants for permits and ensure proper handling and storage procedures will be used to prevent mishandling and misuse of explosives. 

This bill would add categories of persons to the list of persons 

prohibited from receiving or possessing explosive materials. The 

purpose of this expansion would be to try to minimize the risk of 

explosives being mishandled or misused by persons who may pose 

a particular security threat. The categories of persons prohibited 

from purchasing explosives is updated under this legislation to 

more closely reflect the list of persons prohibited from purchasing 

6

1 18 U.S.C. § 844 (2002) 

firearms. The bill includes expanded provisions for relief from disability to allow for appeal of all categories of prohibited persons. 

The bill seeks to achieve a balance between security measures, 

which are necessary to prevent access to explosives by certain individuals, and protection of privacy interests. Although an applicant 

company would receive notice that an individual employed by the 

company may be prohibited from possessing explosives, notification 

of the reasons that an individual is prohibited from possessing explosives would only be provided to that individual in an effort to 

protect privacy. Notice of rights to appeal and information regarding those rights would also be provided directly to the individual. 

This legislation also allows ATF to compile samples of explosive 

materials that are manufactured and imported by Federally licensed entities to give them the ability to quickly determine what 

explosive materials were used in an incident and track these materials. 

Current law makes it a crime to damage any Federally owned or 

leased property by intentional use of fire or explosives.1 Expanding 

the law to include institutions or organizations that receive Federal 

financial assistance would allow ATF to provide their expertise and 

provide the protection of Federal criminal laws to additional entities. 

HEARINGS

The Subcommittee on Crime, Terrorism, and Homeland Security 

held a hearing on H.R. 4864, the ‘‘Anti-Terrorism Explosives Act of 

2002’’ on June 11, 2002. Testimony was heard from three witnesses: The Honorable Kenneth Lawson, Assistant Secretary of Enforcement, U.S. Department of the Treasury; Bradley A. Buckles, 

Director, Bureau of Alcohol, Tobacco and Firearms; and J. Christopher Ronay, President, Institute of Makers of Explosives. 

COMMITTEE CONSIDERATION

On June 13, 2002, the Subcommittee on Crime, Terrorism, and 

Homeland Security met in open session and ordered favorably reported the bill H.R. 4864, by voice vote, a quorum being present. 

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

VOTE OF THE COMMITTEE

There were no recorded votes on this legislation. 

COMMITTEE OVERSIGHT FINDINGS

In compliance with clause 3(c)(1) of rule XIII of the Rules of the 

House of Representatives, the Committee reports that the findings 

and recommendations of the Committee, based on oversight activities under clause 2(b)(1) of rule X of the Rules of the House of Representatives, are incorporated in the descriptive portions of this report. 

7

PERFORMANCE GOALS AND OBJECTIVES

H.R. 4864, the ‘‘Anti-Terrorism Explosives Act of 2002’’ does not 

authorize funding. Therefore, clause 3(c) of rule XIII of the Rules 

of the House of Representatives is inapplicable. 

NEW BUDGET AUTHORITY AND TAX EXPENDITURES

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

expenditures. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

In compliance with clause 3(c)(3) of rule XIII of the Rules of the 

House of Representatives, the Committee sets forth, with respect to 

the bill, H.R. 4864, the following estimate and comparison prepared 

by the Director of the Congressional Budget Office under section 

402 of the Congressional Budget Act of 1974:

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, August 9, 2002. 

Hon. F. JAMES SENSENBRENNER, Jr., Chairman, 

Committee on the Judiciary, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 4864, the Anti-Terrorism 

Explosives Act of 2002. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contacts are Mark Grabowicz (for 

Federal costs), who can be reached at 226–2860, and Jean Talarico 

(for the private-sector impact), who can be reached at 226–2940. 

Sincerely, 

DAN L. CRIPPEN, Director.

Enclosure

cc: Honorable John Conyers, Jr. 

Ranking Member 

H.R. 4864—Anti-Terrorism Explosives Act of 2002. 

SUMMARY

H.R. 4864 would require all purchasers of explosives to obtain 

permits from the Bureau of Alcohol, Tobacco, and Firearms (ATF) 

and would direct that agency to perform background checks on persons who work with explosives. The bill also would require manufacturers and importers of explosive materials or ammonium nitrate to furnish samples and other information to the ATF. Finally, 

H.R. 4864 would expand the current prohibitions on possession of 

explosives and would establish new Federal crimes for offenses relating to misuse of explosives. 

CBO estimates that implementing H.R. 4864 would cost about 

$190 million over the 2003–2007 period for the ATF to administer 

the bill’s provisions, assuming appropriation of the necessary 

amounts. We estimate that enacting the bill would increase receipts by about $2 million over the 2003–2007 period and would 

8

have an insignificant effect on direct spending. Because the bill 

would affect direct spending and receipts, pay-as-you-go procedures 

would apply. 

H.R. 4864 contains no intergovernmental mandates as defined in 

the Unfunded Mandates Reform Act (UMRA) and would impose no 

costs on State, local, or tribal governments. 

H.R. 4864 would impose private-sector mandates, as defined in 

UMRA, on manufacturers, distributors, importers, and purchasers 

of explosive materials. CBO estimates that the costs of those mandates would fall well below the annual threshold specified in 

UMRA ($115 million in 2002, adjusted annually for inflation). 

ESTIMATED COST TO THE FEDERAL GOVERNMENT

The estimated budgetary impact of H.R. 4864 is shown in the following table. The costs of this legislation fall within budget function 750 (administration of justice).

BASIS OF ESTIMATE

CBO estimates that implementing H.R 4864 would increase costs 

for the ATF by about $190 million over the 2003–2007 period. CBO 

assumes that the necessary amounts will be appropriated by the 

start of each fiscal year. In addition, the bill also would increase 

revenues by about $2 million over the 2003–2007 period and would 

have a negligible effect on direct spending. 

Spending Subject to Appropriation 

Under current law, residents of a State may purchase explosives 

from a business located in that State or in an adjacent State without a Federal permit. H.R. 4864 would require those purchasers of 

explosives to obtain a permit from the ATF. The agency expects 

25,000 to 40,000 persons or firms to need such ‘‘limited’’ permits 

each year. Under the bill’s provisions, the ATF would have to conduct a field inspection of each applicant. In addition, H.R. 4864 

would direct the ATF to conduct background checks on all persons 

who handle explosives. The ATF expects that roughly 100,000 

checks would be required each year under the bill. 


4864B.eps
9

CBO expects that the ATF would need to hire a significant number of new employees to carry out the bill’s provisions, mostly field 

inspectors, but also attorneys, chemists, and other administrative 

and support personnel. Based on information from the ATF about 

the level of effort required for field inspections and background 

checks, CBO estimates that implementing H.R. 4864 would cost 

about $40 million annually to hire an additional 350 to 400 persons. We expect that those new positions would be fully staffed by 

fiscal year 2004. 

H.R. 4864 also would require manufacturers and importers of explosive materials or ammonium nitrate to furnish samples and 

other information to the ATF. The agency would have to provide 

reimbursement of the fair market value of samples plus shipping 

costs. Based on information from the ATF and from trade associations for explosives manufacturers, CBO does not expect those costs 

to be significant because of the small amount of material involved. 

Direct Spending and Revenues 

The ATF expects to charge a fee of $25 for each limited permit 

it issues, plus a $12.50 renewal fee each year. Because fees that 

the agency currently charges to issue licenses to manufacturers 

and dealers of explosives are recorded on the budget as revenues, 

CBO expects these collections would also be considered revenues. 

Assuming there are about 30,000 applicants for these permits, 

CBO estimates that enacting H.R. 4864 would increase revenues by 

about $800,000 in fiscal year 2003 and by about $400,000 in each 

year thereafter. 

Enacting H.R. 4864 also could increase collections of criminal 

fines for violations of the bill’s provisions relating to use of explosives. CBO estimates that any additional collections would not be 

significant because of the small number of additional cases likely 

to be affected. Criminal fines are recorded as receipts and deposited 

in the Crime Victims Fund, then later spent. 

PAY-AS-YOU-GO CONSIDERATIONS

The Balanced Budget and Emergency Deficit Control Act specifies procedures for legislation affecting direct spending and receipts. Pay-as-you-go procedures would apply to H.R. 4864 because 

the bill would affect direct spending and receipts. Except for the estimated receipts of nearly $1 million in 2003, annual effects on direct spending and revenues would be less than $500,000 a year, as 

shown in the following table.


4864C.eps
10

ESTIMATED IMPACT ON STATE, LOCAL, AND TRIBAL GOVERNMENTS

H.R. 4864 contains no intergovernmental mandates as defined in 

UMRA and would impose no costs on State, local, or tribal governments. 

ESTIMATED IMPACT ON THE PRIVATE SECTOR

H.R. 4864 would impose private-sector mandates as defined in 

UMRA on manufacturers, distributors, importers, and purchasers 

of explosive materials. CBO estimates that the costs of those mandates would fall well below the annual threshold specified in 

UMRA ($115 million in 2002, adjusted annually for inflation). 

Background Checks and Federal Permits 

H.R. 4864 would require applicants for Federal licenses and permits for handling explosives to submit identifying information on 

specific employees to the ATF. The bill also would require certain 

persons with management responsibilities related to explosives to 

submit fingerprints and a photograph. 

Under current law, residents of a State may purchase explosives 

from a business located in that State or in an adjacent State without a Federal permit. The bill would require those purchasers of 

explosives to obtain a permit from the ATF. 

Based on information from the ATF and representatives of the 

commercial explosives industry, CBO estimates that the cost for 

those mandates would be less than $2 million annually beginning 

in 2003. 

Samples of Materials and other Information 

H.R. 4864 would require manufacturers and importers of explosive materials or ammonium nitrate to furnish samples of those 

materials to the ATF. The cost of this mandate would be comprised 

of the fair market value of the samples and the cost of shipping 

those samples. The bill would provide reimbursement for those 

costs and, therefore, the mandated entities would not incur any 

compliance costs. 

In addition, the bill would require manufacturers and importers 

of explosive materials or ammonium nitrate to furnish any information that the Secretary determines to be relevant to the identification of the explosive material or ammonium nitrate. Based on 

information from the ATF, the specific information that may be required is not determined, but it is expected not to be large. 

Prohibition to Receive and Possess Explosive Materials 

The bill would expand the categories of individuals who would be 

prohibited from receiving and possessing explosive materials to include persons who have been committed to a mental institution, 

discharged dishonorably from the Armed Forces, certain aliens, and 

U.S. citizens who have renounced their citizenship. Based on information from ATF and representatives of the commercial explosives 

industry, the number of people affected would not be great. Thus, 

CBO estimates that the cost of this mandate would be small. 

ESTIMATE PREPARED BY: 

Federal Spending: Mark Grabowicz (226–2860) 

11

2 18 U.S.C. §§ 842, 843 3 18 U.S.C. § 842(a)(3) 

Impact on State, Local, and Tribal Governments: Angela Seitz 

(225–3220) 

Impact on the Private Sector: Jean Talarico (226–2940) 

ESTIMATE APPROVED BY: 

Peter H. Fontaine 

Deputy Assistant Director for Budget Analysis 

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee finds the authority for this legislation in article I, section 8, clause 1 and 18 of the Constitution. 

SECTION-BY-SECTION ANALYSIS AND DISCUSSION

Section 1. Short Title. 

The short title of this bill is the ‘‘Anti-Terrorism Explosives Act 

of 2002.’’

Section 2. Permits for Purchasers of Explosives. 

Current law makes it a crime to transport, ship, receive, or distribute explosive materials in interstate or foreign commerce without a license or permit issued by the Bureau of Alcohol, Tobacco 

and Firearms (ATF).2 However, under current law a loophole exists 

which allows purchases of explosives without a Federal license or 

permit within a State by a resident of that State.3

This section of the bill requires any individual who seeks to purchase explosive materials to obtain a license, permit, or limited 

permit from ATF and makes it unlawful for any person to distribute explosive materials to a person who is not the holder of a 

license, permit, or limited permit. The new permit requirement 

would close the current loophole in the law and significantly enhance the government’s ability to prevent the misuse and unsafe 

storage of explosives. 

This section creates an additional option for a permit called a 

‘‘limited permit.’’ Limited permittees will be allowed to purchase 

explosives four times in a twelve month period. The use of limited 

permits will provide better regulation and tracking of explosives in 

the United States. Limited permittees will be required to undergo 

an application process similar to that required of licensees and permittees, with some exceptions. Currently, licensees and permittees 

may be inspected at any time by ATF officials to ensure compliance 

with explosives regulations. This legislation does not allow ATF the 

right of entry without a warrant on the property of persons possessing limited permits; however, it may be necessary for ATF to 

verify the accuracy of information provided by individuals applying 

for a limited permit, including inspection of storage facilities prior 

to approval of that application. As part of the permit application 

and renewal process, ATF will conduct background checks on all individuals wishing to acquire or possess explosive materials. Any 

person or entity seeking to obtain a license or permit from ATF will 

be required to undergo a background check and allow background 

12

4 18 U.S.C. Ch. 44, §§ 921 et seq. 

checks of company employees, thereby reducing the availability of 

explosives to terrorists, felons and others prohibited by law from 

possessing explosives. 

Applicants would be required to submit photographs and fingerprints along with their applications, to ensure that a thorough 

background check can be completed. In the case of a corporation, 

partnership or association, the applicant would be required to submit fingerprints and photographs of responsible persons, meaning 

those individuals who possess the power to direct the management 

and policies of the corporation, partnership or association pertaining to explosive materials. 

This section will also require applicants to list the names of all 

employees who will have possession of explosive materials, so that 

ATF can verify that these individuals are not prohibited from receiving or possessing explosives. Under current law, it is too easy 

for would-be terrorists and criminals to obtain access to explosive 

materials by obtaining jobs with explosives licensees or permittees. 

These expanded requirements would also apply to entities seeking 

to obtain a license to sell explosives as well as applicants for permits. 

This section is not intended to require corporate applicants for 

explosives licenses or permits to list every single corporate director 

or officer as a ‘‘responsible person’’ on its application. Those officials within the corporation who have no power to direct the management and policies of the applicant with respect to explosive materials need not be listed on the application. For example, in a 

large corporation that uses explosives in just one of many business 

activities, there may be many corporate officials who have no responsibilities or authority in connection with the explosives aspects 

of the company’s business. These officials would not be listed as ‘‘responsible persons’’ on the application, and would not need to 

submit fingerprints or photographs to ATF. 

The Secretary of Treasury should strive for balanced enforcement. In so doing, the Secretary should avoid imposing unnecessary burdens on applicants for explosives licenses and permits. 

There is no reason to require background checks for corporate officials who have no responsibilities or authority in connection with 

the explosives aspects of the company’s business. 

It is expected that ATF will work closely with the regulated industry to develop guidance as to which employees are considered 

to be in ‘‘possession’’ of explosive materials in the course of their 

employment. Applicants for explosives licenses or permits are not 

required to list every single employee of the business. Instead, they 

are only required to list employees who are expected to possess explosive materials as part of their duties. 

In developing these standards, ATF should be guided by the case 

law interpreting the term ‘‘possession’’ under the Gun Control Act 

of 1968 (GCA) 4, as amended. It is well established that possession 

under the GCA may be demonstrated through either actual or constructive possession. Actual possession exists when a person is in 

immediate possession or control of an object, and includes instances 

where a person knowingly has direct physical control over the object at a given time. Thus, employees who physically handle exploVerDate Sep 04 2002 23:08 Sep 17, 2002 Jkt 099006 PO 00000 Frm 00012 Fmt 6659 Sfmt 6601 E:\HR\OC\HR658.XXX HR658
13

sive materials would clearly be in possession of those materials. 

This would include, among others, employees who handle explosive 

materials (as defined by the law) as part of a production process; 

employees who handle explosive materials in order to ship, transport, or sell them; and employees who actually use the explosive 

materials. All of these employees, as well as any other employees 

who actually possess explosive materials as part of their duties, 

must be listed on the application for a license or permit. 

Where direct physical contact is lacking, a person may nonetheless have constructive possession where he or she knowingly has 

the power and the intention at a given time to exercise dominion 

and control over the explosives, either directly or through others. 

Accordingly, this section would require applicants for licenses or 

permits to list all employees who will have constructive possession 

of explosive materials as part of their duties. For example, a supervisor at a construction site who keeps the keys for the building in 

which the explosives are stored, and directs the use of explosives 

by other employees, would be in constructive possession of those 

explosives. 

The background checks will be performed by ATF and the employer will be notified if an employee is cleared or a prohibited person; however, the individual who is determined to be prohibited, 

not the employer, is the only one who will receive information regarding the reason for the prohibition. The individual is then free 

to appeal or challenge the prohibition. Additionally, individuals 

who pass a background check will receive a letter from ATF that 

may serve as verification that they are not a prohibited person for 

future employees. The Committee expects the background checks 

will be possessed in a timely manner. 

Permittees or licensees who hire new employees who will be authorized to possess or will be ‘‘responsible persons’’ after an application for a permit or license was approved would be expected to 

submit those names to ATF for a background check. Individuals 

employed by a licensee or permittee at the time this legislation is 

enacted will be required to submit to a background check at the 

time the employer applies for the renewal of a license or permit or 

issuance of a new license or permit by ATF. 

Given the fact that this legislation will require applicants to provide additional information which must be reviewed and verified by 

ATF, the time period for approval or denial of an application was 

extended from 45 days to 90 days under this legislation to allow 

additional time to process applications. However, it is expected that 

the ATF will process applications in a timely fashion and will not 

deny approval of applications based solely on its inability to complete the application process in the time established by statute. 

Pending approval of the renewal of a license or permit, the Committee expects the ATF to allow current licensees and permittees 

to continue operations. 

Section 3. Persons Prohibited From Receiving or Possessing Explosive Materials. 

Under current law, persons who have been committed to a mental institution, aliens that are not lawful permanent residents of 

the United States, persons who have been dishonorably discharged 

from the military, and Americans who have renounced their citiVerDate Sep 04 2002 23:08 Sep 17, 2002 Jkt 099006 PO 00000 Frm 00013 Fmt 6659 Sfmt 6601 E:\HR\OC\HR658.XXX HR658
14

5 18 U.S.C. § 842

zenship are not prohibited from receiving or possessing explosive 

materials.5

This section expands the list of persons prohibited from possessing explosive materials to include unlawful aliens, persons dishonorably discharged from the Armed Forces, persons committed to 

a mental institution, and persons who have renounced their citizenship of the United States. These additions will make the categories 

of persons prohibited from possessing explosives similar to the categories of persons prohibited from obtaining firearms. This section 

also expands the categories of persons who may seek relief from 

disability under these provisions to include all categories of prohibited persons. 

Section 4. Requirement to Provide Samples of Explosive Materials 

and Ammonium Nitrate. 

This section requires companies who import or manufacture explosive materials to provide ATF with samples on a reimbursable 

basis to allow for easier tracking and identification after an incident. 

Section 5. Destruction of Property of Institutions Receiving Federal 

Financial Assistance. 

This section expands ATF authority to investigate destruction of 

property by fire or explosion if the institution receives Federal assistance. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italics, 

existing law in which no change is proposed is shown in roman):

TITLE 18, UNITED STATES CODE

* * * * * * *

PART I—CRIMES 

* * * * * * *

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

* * * * * * *

§ 841. Definitions 

As used in this chapter— (a) * * *

* * * * * * *

15

ø(j) ‘‘Permittee’’ means any user of explosives for a lawful 

purpose, who has obtained a user permit under the provisions 

of this chapter.¿

(j) ‘‘Permittee’’ means any user of explosives for a lawful 

purpose, who has obtained a user permit or a limited permit 

under this chapter.

* * * * * * *

§ 842. Unlawful acts 

(a) It shall be unlawful for any person—

(1) to engage in the business of importing, manufacturing, 

or dealing in explosive materials without a license issued 

under this chapter; 

(2) knowingly to withhold information or to make any false 

or fictitious oral or written statement or to furnish or exhibit 

any false, fictitious, or misrepresented identification, intended 

or likely to deceive for the purpose of obtaining explosive materials, or a license, permit, exemption, or relief from disability 

under the provisions of this chapter; øand¿

ø(3) other than a licensee or permittee knowingly— ø(A) to transport, ship, cause to be transported, or receive in interstate or foreign commerce any explosive materials, except that a person who lawfully purchases explosive materials from a licensee in a State contiguous to the 

State in which the purchaser resides may ship, transport, 

or cause to be transported such explosive materials to the 

State in which he resides and may receive such explosive 

materials in the State in which he resides, if such transportation, shipment, or receipt is permitted by the law of 

the State in which he resides; or 

ø(B) to distribute explosive materials to any person 

(other than a licensee or permittee) who the distributor 

knows or has reasonable cause to believe does not reside 

in the State in which the distributor resides. 

ø(b) It shall be unlawful for any licensee knowingly to distribute any explosive materials to any person except—

ø(1) a licensee; 

ø(2) a permittee; or 

ø(3) a resident of the State where distribution is made and 

in which the licensee is licensed to do business or a State contiguous thereto if permitted by the law of the State of the purchaser’s residence.¿

(3) other than a licensee or permittee, knowingly—

(A) to transport, ship, cause to be transported, or receive any explosive materials; or 

(B) to distribute explosive materials to any person other 

than a licensee or permittee; or 

(4) who is a holder of a limited permit—

(A) to transport, ship, cause to be transported, or receive in interstate or foreign commerce any explosive materials; or 

(B) to receive explosive materials from a licensee or permittee whose premises are located in the State of residence 

of the holder, except that the holder of a limited permit may 

16

so receive explosive materials on 4 or fewer occasions pursuant to regulations prescribed by the Secretary. 

(b) It shall be unlawful for any licensee or permittee knowingly 

to distribute any explosive materials to any person other than— (1) a licensee; 

(2) a holder of a user permit; or 

(3) a holder of a limited permit who is a resident of the 

State where distribution is made and in which the transferor’s 

premises are located.

* * * * * * *

(d) It shall be unlawful for any person knowingly to distribute 

explosive materials to any individual who: 

(1) * * *

* * * * * * *

(5) is an unlawful user of or addicted to any controlled substance (as defined in section 102 of the Controlled Substances 

Act (21 U.S.C. 802)); øor¿

(6) has been adjudicated a mental defectiveø.¿ or has been 

committed to a mental institution;

(7) is an alien, other than a lawful permanent resident 

alien (as defined in section 101(a)(20) of the Immigration and 

Nationality Act) or an alien described in subsection (q)(2) of 

this section; 

(8) has been discharged from the Armed Forces under dishonorable conditions; or 

(9) having been a citizen of the United States, has renounced his citizenship.

* * * * * * *

(i) It shall be unlawful for any person—

(1) * * *

* * * * * * *

(3) who is an unlawful user of or addicted to any controlled 

substance (as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802)); øor¿

* * * * * * *

(5) who, is an alien, other than a lawful permanent resident alien (as defined in section 101(a)(20) of the Immigration 

and Nationality Act) or an alien described in subsection (q)(2); 

(6) who has been discharged from the Armed Forces under 

dishonorable conditions; or 

(7) who, having been a citizen of the United States, has renounced his citizenship; 

* * * * * * *

(q) PROVISIONS RELATING TO LEGAL ALIENS.—

(1) DEFINITION.—In this subsection, the term ‘‘alien’’ has 

the same meaning as in section 101(a)(3) of the Immigration 

and Nationality Act (8 U.S.C. 1101(a)(3)). 

(2) EXCEPTIONS.—An alien is described in this paragraph 

if the alien—(A) is—

(i) in lawful nonimmigrant status; 

17

(ii) a refugee admitted under section 207 of the Immigration and Nationality Act (8 U.S.C. 1157); or 

(iii) in asylum status under section 208 of the Immigration and Nationality Act (8 U.S.C. 1158); and 

(B) is—

(i) a law enforcement officer of a foreign country 

designated in writing by the Attorney General as a 

country covered by this subparagraph, and is entering 

the United States on official law enforcement business; 

(ii) a person having the authority to direct or cause 

the direction of the management and policies of a corporation, partnership, or association licensed under 

section 843(a), and shipping, transporting, possessing 

or receiving explosive materials relates to the authority; 

or 

(iii) a member of the armed forces of a foreign 

country that is a member of the North Atlantic Treaty 

Organization, Australia, New Zealand, Japan, Republic of Korea, or other foreign country designated in 

writing by the Attorney General, after consultation 

with the Secretary of Defense, as a country covered by 

this subparagraph (whether or not admitted in a nonimmigrant status), who is present in the United States 

under military orders for training or other authorized 

purpose, and the shipping, transporting, possessing, or 

receiving explosive materials is in furtherance of the 

military purpose; 

(iv) lawfully present in the United States in cooperation with the Director of Central Intelligence, and 

the shipment, transportation, receipt, or possession of 

the explosive materials is in furtherance of such cooperation.

§ 843. Licenses and user permits 

(a) An application for a user permit or limited permit or a license to import, manufacture, or deal in explosive materials shall 

be in such form and contain such information as the Secretary 

shall by regulation prescribe, including the names of and appropriate identifying information regarding all employees who will be 

authorized by the employer to possess explosive materials, as well as 

fingerprints and a photograph of each responsible person with respect to the applicant. In this section, the term ‘‘responsible person’’

means, with respect to an applicant, an individual who has the 

power to direct the management and policies of the applicant pertaining to explosive materials. Each applicant for a license or permit shall pay a fee to be charged as set by the Secretary, said fee 

not to exceed $200 for each license or permit. øEach license or permit shall be valid for no longer than three years from date of 

issuance and shall be renewable upon the same conditions and subject to the same restrictions as the original license or permit and 

upon payment of a renewal fee not to exceed one-half of the original fee.¿ Each license or user permit shall be valid for no longer 

than 3 years from the date of issuance, and each limited permit 

shall be valid for no longer than 1 year from the date of issuance. 

Each license or permit shall be renewable upon the same conditions 

18

and subject to the same restrictions as the original license or permit 

(except that, in the case of the renewal of a limited permit, the 

verification requirement of subsection (b)(5) may be satisfied by inspection or such other means as the Secretary deems appropriate) 

and upon payment of a renewal fee not to exceed 1⁄2 of the original 

fee.

(b) Upon the filing of a proper application and payment of the 

prescribed fee, and subject to the provisions of this chapter and 

other applicable laws, the Secretary shall issue to such applicant 

the appropriate license or permit if— ø(1) the applicant (including in the case of a corporation, 

partnership, or association, any individual possessing, directly 

or indirectly, the power to direct or cause the direction of the 

management and policies of the corporation, partnership, or association) is not a person to whom the distribution of explosive 

materials would be unlawful under section 842(d) of this chapter;¿

(1) the applicant (or, if the applicant is a corporation, partnership, or association, each responsible person with respect to 

the applicant) is not a person who is prohibited from receiving, 

distributing, transporting, or possessing explosive materials 

under subsection (d) or (i) of section 842; 

(2) none of the employees who will be authorized by the applicant to possess explosive materials in the course of their employment with the applicant is a person whose possession of explosives would be unlawful under section 842(i);

ø(2)¿ (3) the applicant has not willfully violated any of the 

provisions of this chapter or regulations issued hereunder; 

ø(3)¿ (4) the applicant has in a State premises from which 

he conducts or intends to conduct business; 

ø(4)¿ (5) the Secretary has verified by inspection that the 

applicant has a place of storage for explosive materials which 

meets such standards of public safety and security against 

theft as the Secretary by regulations shall prescribe; øand¿

ø(5)¿ (6) the applicant has demonstrated and certified in 

writing that he is familiar with all published State laws and 

local ordinances relating to explosive materials for the location 

in which he intends to do businessø.¿; and

(7) in the case of a limited permit, the applicant has certified in writing that the applicant will not receive explosive 

materials on more than 4 different occasions during any 12-

month period in which a limited permit issued to the applicant 

is in effect.

(c) The Secretary shall approve or deny an application within 

øa period of forty-five days beginning on the date such¿ 90 days 

after the application is received by the Secretary. 

* * * * * * *

(f) Licensees and øpermittees¿ holders of user permits shall 

make available for inspection at all reasonable times their records 

kept pursuant to this chapter or the regulations issued hereunder, 

and licensees and permittees shall submit to the Secretary such reports and information with respect to such records and the contents thereof as he shall by regulations prescribe. The Secretary 

may enter during business hours the premises (including places of 

storage) of any licensee or øpermittee¿ holder of a user permit, for 

19

the purpose of inspecting or examining (1) any records or documents required to be kept by such licensee or permittee, under the 

provisions of this chapter or regulations issued hereunder, and (2) 

any explosive materials kept or stored by such licensee or permittee at such premises. Upon the request of any State or any political subdivision thereof, the Secretary may make available to 

such State or any political subdivision thereof, any information 

which he may obtain by reason of the provisions of this chapter 

with respect to the identification of persons within such State or 

political subdivision thereof, who have purchased or received explosive materials, together with a description of such explosive materials. 

(g) Licenses and user permits issued under the provisions of 

subsection (b) of this section shall be kept posted and kept available for inspection on the premises covered by the license and permit.

(h)(1) If the Secretary receives from an employer the name and 

other identifying information with respect to a responsible person or 

an employee who will be authorized by the employer to possess explosive materials in the course of employment with the employer, the 

Secretary shall determine whether possession of explosives by the responsible person or the employee, as the case may be, would be unlawful under section 842(i). In making the determination, the Secretary may take into account a letter or document issued under 

paragraph (2) of this subsection. 

(2)(A) If the Secretary determines that possession of explosives 

by the responsible person or the employee would not be unlawful 

under section 842(i), the Secretary shall notify the employer in writing or electronically of the determination and issue to the responsible person or the employee, as the case may be, a letter of clearance which confirms the determination. 

(B) If the Secretary determines that possession of explosives by 

the responsible person or the employee would be unlawful under section 842(i), the Secretary shall notify the employer in writing or 

electronically of the determination and issue to the responsible person or the employee, as the case may be, a document which confirms 

the determination, explains the grounds for the determination, provides information on how the disability may be relieved, and explains how the determination may be appealed. 

(i) A person who manufactures or imports explosive materials 

or ammonium nitrate shall, as required by letter issued by the Secretary, furnish samples of the explosive materials or ammonium nitrate, information on chemical composition of the explosive materials or ammonium nitrate, and any other information that the Secretary determines is relevant to the identification of the explosive 

materials or to identification of the ammonium nitrate. The Secretary shall, by regulation, provide for the reimbursement of the fair 

market value of samples furnished pursuant to this subsection, as 

well as the reasonable costs of shipment.

§ 844. Penalties 

(a) * * *

* * * * * * *

(f)(1) Whoever maliciously damages or destroys, or attempts to 

damage or destroy, by means of fire or an explosive, any building, 

20

vehicle, or other personal or real property in whole or in part 

owned or possessed by, or leased to, the United States, or any department or agency thereof, or any institution or organization receiving Federal financial assistance, shall be imprisoned for not 

less than 5 years and not more than 20 years, fined under this 

title, or both. 

* * * * * * *

§ 845. Exceptions; relief from disabilities 

(a) * * *

(b) A person who øhad been indicted for or convicted of a crime 

punishable by imprisonment for a term exceeding one year¿ is prohibited from shipping, transporting, receiving, or possessing any explosive may make application to the Secretary for relief from the 

disabilities imposed by this chapter with respect to engaging in the 

business of importing, manufacturing, or dealing in explosive materials, or the purchase of explosive materials, and incurred by reason øof such indictment or conviction¿ of the applicable provision 

of section 842(i), and the Secretary may grant such relief if it is established to his satisfaction that the circumstances regarding øthe 

indictment or conviction¿ the applicability of such provision, and 

the applicant’s record and reputation, are such that the applicant 

will not be likely to act in a manner dangerous to public safety and 

that the granting of the relief will not be contrary to the public interest. A licensee or permittee who makes application for relief 

from the disabilities incurred under this chapter by reason øof indictment or conviction¿ of such applicability, shall not be barred 

øby such indictment or conviction¿ by such applicability from further operations under his license or permit pending final action on 

an application for relief filed pursuant to this section. 

* * * * * * *

MARKUP TRANSCRIPT

BUSINESS MEETING 

WEDNESDAY, JUNE 19, 2002

HOUSE OF REPRESENTATIVES, 

COMMITTEE ON THE JUDICIARY, 

Washington, DC. 

The Committee met, pursuant to notice, at 10:29 a.m., in Room 

2141, Rayburn House Office Building, Hon. F. James Sensenbrenner, Jr. [Chairman of the Committee] presiding. 

Chairman SENSENBRENNER. The Committee will be in order. A 

working quorum is present. 

* * * * * * *

The next item on the agenda is the adoption of H.R. 4864, the 

‘‘Anti-Terrorism Explosives Act of 2002.’’

The Chair recognizes the gentleman from Texas, Mr. Smith, the 

Subcommittee Chairman, for purposes of a motion. 

Mr. SMITH. Mr. Chairman, the Subcommittee on Crime, Terrorism, and Homeland Security reports favorably the bill H.R. 4864 

and moves its favorable recommendation to the full House. 

21

Chairman SENSENBRENNER. Without objection, the bill will because considered as read and open for amendment at any point. 

[The bill, H.R. 4864, follows:]


I4864A.eps
22


I4864B.eps
23


I4864C.eps
24


I4864D.eps
25


I4864E.eps
26


I4864F.eps
27


I4864G.eps
28


I4864H.eps
29


I4864I.eps
30


I4864J.eps
31


I4864K.eps
32


I4864L.eps
33

Chairman SENSENBRENNER. The Chair would like to get us done 

by 12:30, if that’s possible. And without objection, opening statements will be placed in the record at this point. 

[The prepared statement of Ms. Jackson Lee follows:]

PREPARED STATEMENT OF THE HONORABLE SHEILA JACKSON LEE, A REPRESENTATIVE

IN CONGRESS FROM THE STATE OF TEXAS


Lee1A.eps
34

Chairman SENSENBRENNER. Are there amendments? 

Ms. JACKSON LEE. I have an amendment, Mr. Chairman. I’ll be 

very brief. 

Chairman SENSENBRENNER. The clerk will report the amendment. 

The CLERK. Amendment to H.R. 4864, offered by Ms. Jackson 

Lee——

Chairman SENSENBRENNER. Without objection, the amendment is 

considered as read. 

[The amendment follows:]

Chairman SENSENBRENNER. The gentlewoman from Texas is recognized for 5 minutes. 

Ms. JACKSON LEE. I thank the distinguished Chairman, and I 

thank the Committee, and I thank the Ranking Member of this 

Committee, and the Chairman as well. 

We know, with the new assignment that has been given to this 

Subcommittee, which provides for oversight over homeland security, these are important issues dealing with antiterrorism. Knowing that this is an important legislative initiative dealing with the 

issue of explosives, which we have confronted in the most tragic 

way on September 11th, I simply add the keeping of records; that 


Lee1B.eps 4864A.eps
35

we have worked with the Chairman and the Ranking Member, I 

believe, on this legislation. 

And all this amendment does is, not later than 1 year after the 

effective date of this act, the Secretary of the Treasury shall maintain an electronic record of each license, user permit, or limited 

permit issued or renewed under section 843 on or after 1 year after 

the effective date of this act. 

This, again, goes to data collection. We believe this is an important aspect to help with ATF, coordinating the permit-holder information—— Chairman SENSENBRENNER. Will the gentlewoman yield? 

Ms. JACKSON LEE. I’d be happy to yield. 

Chairman SENSENBRENNER. I believe this is a constructive addition to the legislation and favor the amendment. 

Ms. JACKSON LEE. I yield back. I thank the distinguished gentleman. 

Chairman SENSENBRENNER. The question is on agreeing to the 

amendment offered by the gentlewoman from Texas, Ms. Jackson 

Lee. 

Those in favor will say aye. 

Opposed, no. 

The ayes appear to have it. The ayes have it, and the amendment is agreed to. 

Mr. SCOTT. Mr. Chairman? 

Chairman SENSENBRENNER. Are there further amendments? 

The gentleman from Virginia, Mr. Scott. 

Mr. SCOTT. Mr. Chairman, I move to strike the last word. 

Chairman SENSENBRENNER. The gentleman is recognized for 5 

minutes. 

Mr. SCOTT. And I know we’re trying to move quickly. 

I just wanted to point out that the Administration witness who 

testified indicated that they do not have the administrative capability of performing the tasks under this bill, but they will ask for 

funding. 

So I would want the Members of the Committee to be sensitive 

to the idea that when they ask for funding—when we pass the bill, 

funding will be necessary for them to be to comply with the bill. 

Chairman SENSENBRENNER. Does the gentleman yield? 

Mr. SCOTT. I yield. 

Chairman SENSENBRENNER. I agree with the gentleman from 

Virginia on that point. But as you know, the appropriators usually 

don’t care what authorizers think. But we will speak up. 

Mr. SCOTT. I yield back. 

Chairman SENSENBRENNER. The question is—the Chair notes 

the—are there further amendments? 

The Chair notes the presence of a reporting quorum. 

Those in favor of reporting the bill favorably will say aye. 

Opposed, no. 

The ayes appear to have it. The ayes have it, and the motion to 

report favorably is adopted. 

Without objection, the bill will be reported favorably to the 

House in the form of a single amendment in the nature of a substitute, incorporating the amendment adopted here today. Without 

objection, the Chairman is authorized to move to go to conference 

pursuant to House rules. Without objection, the staff is directed to 

36

make technical and conforming changes. And all Members will be 

given 2 days, as provided by House rules, in which to submit additional, dissenting, supplemental, or minority views. 

The Chair would like to thank everybody for their cooperation. 

We made this a rolling markup. We have now rolled our way all 

the way down the hill and have accomplished quite a bit. 

The Judiciary Committee remains the most productive in Congress, because everybody works together. 

And the Committee is adjourned. 

[Whereupon, at 12:15 p.m., the Committee was adjourned.]

Æ