sively 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 Agri-
culture, States, and appropriate private sector entities, to 
ensure that the access of agricultural producers to ammo-
nium nitrate is not unduly burdened. 
‘‘(h) DATA CONFIDENTIALITY.— 
‘‘(1) IN
GENERAL.—Notwithstanding section 
552 of title 5, United States Code, or the USA PA-
TRIOT ACT (Public Law 107–56; 115 Stat. 272), 
and except as provided in paragraph (2), the Sec-
retary may not disclose to any person any informa-
tion 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, em-
ployee, or person, or to a State agency pursuant to 
section 899D, under appropriate arrangements to 
ensure the protection of the information. 
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‘‘SEC. 899C. INSPECTION AND AUDITING OF RECORDS. 
‘‘The Secretary shall establish a process for the peri-
odic 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 pur-
pose 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 in-
volved 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 registra-
tion 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 dele-
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gate to the State the authority to carry out func-
tions under sections 899B and 899C, if the Sec-
retary determines that the State is capable of satis-
factorily carrying out such functions. 
‘‘(3) FUNDING.—Subject to the availability of 
appropriations, if the Secretary enters into an agree-
ment 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 fa-
cility registered under section 899B(c)(1) guidance 
on— 
‘‘(A) the identification of suspicious ammo-
nium nitrate purchases or attempted purchases; 
‘‘(B) the appropriate course of action to be 
taken by the ammonium nitrate facility owner 
with respect to such a purchase or attempted 
purchase, including— 
‘‘(i) exercising the right of the owner 
of the ammonium nitrate facility to decline 
sale of ammonium nitrate; and 
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‘‘(ii) notifying appropriate law en-
forcement entities; and 
‘‘(C) any such additional subjects as the 
Secretary determines are appropriate to prevent 
the misappropriation or use of ammonium ni-
trate in an act of terrorism. 
‘‘(2) USE OF MATERIALS AND PROGRAMS.—In 
providing guidance under this subsection, the Sec-
retary 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 mate-
rials shall be designed to notify prospective am-
monium 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 
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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. 
‘‘SEC. 899F. PROHIBITIONS AND PENALTY. 
‘‘(a) PROHIBITIONS.—No person shall— 
‘‘(1) buy and take possession of ammonium ni-
trate without a registration number required under 
subsection (c) or (d) of section 899B; 
‘‘(2) own or operate an ammonium nitrate facil-
ity without a registration number required under 
section 899B(c); or 
‘‘(3) fail to comply with any requirement or vio-
late any other prohibition under this subtitle. 
‘‘(b) IN GENERAL.—A person that violates this sub-
title may be assessed a civil penalty by the Secretary of 
not more than $50,000 per violation. 
‘‘(c) PENALTY CONSIDERATIONS.—In determining 
the amount of a civil penalty under this section, the Sec-
retary shall consider— 
‘‘(1) the nature and circumstances of the viola-
tion; 
‘‘(2) with respect to the person who commits 
the violation, any history of prior violations, the abil-
ity to pay the penalty, and any effect the penalty is 
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likely to have on the ability of such person to do 
business; and 
‘‘(3) any other matter that the Secretary deter-
mines that justice requires. 
‘‘(d) NOTICE AND OPPORTUNITY FOR A HEARING.— 
No civil penalty may be assessed under this subtitle unless 
the person liable for the penalty has been given notice and 
an opportunity for a hearing on the violation for which 
the penalty is to be assessed in the county, parish, or in-
corporated city of residence of that person. 
‘‘(e) DELAY IN APPLICATION OF PROHIBITION ON 
OWNERS OF FACILITIES.—Subsection (a)(2) shall apply 
beginning 6 months after the issuance by the Secretary 
of a final rule implementing this subtitle. 
‘‘SEC. 899G. PREEMPTION OF OTHER LAWS. 
‘‘(a) OTHER FEDERAL REGULATIONS.—Nothing in 
this subtitle affects any regulation issued by any agency 
other than an agency of the Department. 
‘‘(b) STATE LAW.—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 pre-
empt 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, as determined by the Secretary. 
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‘‘SEC. 899H. 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 sub-
title within one year after such date of enactment. 
‘‘SEC. 899I. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to the Sec-
retary 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 the following new items: 
‘‘Subtitle J—Secure Handling of Ammonium Nitrate 
‘‘Sec. 899A. Definitions. 
‘‘Sec. 899B. Regulation of handling and purchase 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. Preemption of other laws. 
‘‘Sec. 899H. Deadlines for regulations. 
‘‘Sec. 899I. Authorization of appropriations.’’. 
Æ 
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