the owner of an ammonium nitrate facility shall take 
reasonable actions to ensure the protection of the in-
formation included in such records. 
‘‘(f) EXEMPTION FOR EXPLOSIVE PURPOSES.—The 
Secretary may exempt from this subtitle a person pro-
ducing, selling, or purchasing ammonium nitrate exclu-
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. 
‘‘(i) REGISTRATION PROCEDURES AND CHECK OF 
TERRORIST WATCH LIST.— 
‘‘(1) REGISTRATION PROCEDURES.— 
‘‘(A) GENERALLY.—The Secretary shall 
establish procedures to efficiently receive appli-
cations for registration numbers under this sub-
title, conduct the checks required under para-
graph (2), and promptly issue or deny a reg-
istration number. 
‘‘(B) INITIAL
SIX-MONTH
REGISTRATION 
PERIOD.—The Secretary shall take steps to 
maximize the number of registration applica-
tions 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 informa-
tion 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 Sec-
retary shall establish an expedited appeals 
process for persons denied a registration 
number under this subtitle. 
‘‘(ii) TIME
PERIOD
FOR
RESOLU-
TION.—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 subpara-
graph (A), shall consult with appropriate stake-
holders. 
‘‘(C) GUIDANCE.—The Secretary shall pro-
vide guidance regarding the procedures and in-
formation required for an appeal under sub-
paragraph (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 Sec-
retary and may be used only for making deter-
minations under this section. Notwithstanding 
any other provision of this subtitle, the Sec-
retary may share any such information with 
Federal, State, local, and tribal law enforce-
ment agencies, as appropriate. 
‘‘(6) REGISTRATION INFORMATION.— 
‘‘(A) AUTHORITY TO REQUIRE INFORMA-
TION.—The Secretary may require a person ap-
plying for a registration number under this sub-
title to submit such information as may be nec-
essary to carry out the requirements of this sec-
tion. 
‘‘(B) REQUIREMENT TO UPDATE INFORMA-
TION.—The Secretary may require persons 
issued a registration under this subtitle to up-
date 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 reg-
istration number pursuant to this subtitle 
against the terrorist watch list, and may revoke 
such registration number if the Secretary deter-
mines such person may pose a threat to na-
tional security. 
‘‘(B) NOTICE OF REVOCATION.—The Sec-
retary shall, as appropriate, provide prior notice 
to a person whose registration number is re-
voked 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 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-
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 transfers or at-
tempted 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 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 
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 am-
monium nitrate facility unless such person is reg-
istered under subsection (c) or (d) of section 899B, 
or is an agent of a person registered under sub-
section (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 ammo-
nium nitrate facility to any person who is not reg-
istered 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 ammo-
nium nitrate without a registration number re-
quired 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 sub-
title.
‘‘(b) 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. 
‘‘(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 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 
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.
‘‘(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 in-
corporated city of residence of that person. 
‘‘(f) DELAY
IN APPLICATION
OF PROHIBITION.— 
Paragraphs (1) and (2) of subsection (a) shall apply be-
ginning 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 pro-
vision 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 au-
thorities 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 em-
ployed in an act of terrorism (as defined in section 3077 
of title 18, United States Code), or to use ammonium ni-
trate for any other unlawful purpose, shall be immune 
from civil liability arising from that refusal to sell ammo-
nium nitrate or from making that disclosure.
‘‘(b) LIMITATION.—Subsection (a) shall not be con-
strued to apply with respect to any refusal to sell or disclo-
sure— 
‘‘(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 vet-
eran 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 sub-
title 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 sub-
title within one year after such date of enactment. 
‘‘SEC. 899J. 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 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.