Thank you, Mr. Chairman, Mr. Scott and members of the Subcommittee. I am grateful to Chairman Smith for scheduling this hearing. I welcome the opportunity to discuss this important legislation addressing explosives.

The legislation before you contains practical, common sense provisions, which, if enacted into law, will significantly strengthen current Federal oversight responsibilities on explosives controls. It will also enhance our ability to deter, prevent, and identify individuals who illegally misuse or acquire explosives. This proposal provides new and strong measures to ensure that only persons who are legally entitled to possess explosives can do so, thereby enhancing our overall National efforts to combat terrorism.

We know that firearms, arson, and explosives are the most common tools of violent criminals and terrorists. However, under current Federal law, we have an "honor" system for explosives acquisition. Any individual may go into an explosives dealer’s place of business within a State of residence and purchase virtually any quantity or type of explosives without a background check. As you know, background checks are currently required by law for firearms purchases. Federal firearms laws also prohibit non-immigrant or illegal aliens from purchasing or possessing firearms.

It is not unlawful for these aliens to acquire or possess explosives. The legislation being considered by the Subcommittee would address both of these weaknesses in the Federal explosives laws.

Specifically, H.R. 4864 would require all purchasers of explosives to obtain a permit from ATF. A permit would be issued only to individuals who are properly identified and subjected to a thorough background check. This will ensure that prohibited categories of persons cannot acquire or possess explosives through legal distribution channels. Permits under existing law are required only for interstate purchases. This bill would extend the permit requirement to intrastate transactions. Although some States have enacted controls over intrastate purchases, they are not uniform and do not present a comprehensive solution as does the legislation before you today.

H.R.4864 will also provide for additional screening of all employees who will possess explosive materials, so that ATF can verify that these individuals are not prohibited from receiving or possessing explosives. Under current law, it is possible for terrorists and criminals to obtain access to explosive materials by obtaining jobs (such as driving trucks) with companies or individuals who are explosives licensees.

The legislation further recognizes the distinction between occasional users of explosives and frequent users by creating a new "limited user" permit for those who anticipate only infrequent purchases. Occasional users with an intrastate purchaser’s permit would be allowed to make no more than four purchases of explosives within a 12- month period and the permit would only be valid for purchases within the purchaser's State of residence. While limited permit holders must pass the background check like all other license or permit applicants, they would not be subject to warrantless compliance inspections that are required for holders of regular user permits.

This legislation also expands the list of individuals who are prohibited from purchasing or possessing explosives to include mental incompetents, certain aliens other than lawful permanent residents, persons dishonorably discharged from the military, and persons who have renounced their U.S. citizenship.

Congress has already determined that the possession of firearms by the above categories of people is dangerous to society. In order to combat terrorism and other violent crime, it is essential that Federal law prohibit the receipt or possession of explosive materials by such individuals already deemed too dangerous to possess firearms. These additions to the list of prohibited persons brings the explosives law in line with most categories of prohibited persons under the Gun Control Act.

The legislation also would enhance ATF’s ability to solve criminal cases involving explosives by requiring explosives manufacturers and importers, as well as persons who manufacture or import ammonium nitrate, to provide to ATF, upon request, samples of, or chemical information on, the products they manufacture or import. This will essentially enable us to create a library with which to identify explosives materials, increase our investigative capabilities, and produce a greater body of scientific and research data available for use by the law enforcement and intelligence communities, nationwide and worldwide. Such information is essential to ATF's ability to prevent and solve bombings and to trace explosive materials used in terrorist activities and other violent crimes by matching residue with the manufacturers’ samples.

This provision would further augment the capabilities of ATF’s National Arson and Explosives Repository, in that it will assist us in analyzing unusual sales and thefts for trends and patterns that may indicate criminal misuse of explosives or illegal trafficking. This proactive approach will complement existing homeland security efforts.

Finally, the legislative package includes a provision restoring the ability of ATF and Federal law enforcement to investigate and prosecute those who use explosives to damage the property of institutions receiving Federal financial assistance, such as hospitals and laboratories.

We fully anticipate the need for additional resources to implement this legislation, if enacted. We are currently evaluating what those specific needs will be and will continue to coordinate the resource requirements with OMB for submission to Congress.

In summary, we believe the legislative package under consideration today would greatly enhance our current efforts to prevent the illegal and criminal diversion and misuse of explosive materials.

In order to put these legislative proposals in context, I would like to provide some background on ATF’s current regulatory and investigative efforts involving explosives.

ATF regulates the commerce in explosives by licensing and inspecting importers, manufacturers, dealers, and persons acquiring or transporting explosive materials in interstate or foreign commerce. As a part of its regular inspection program, ATF inspects explosives storage facilities and the records of acquisition and disposition that licensees and permittees are required to maintain. ATF is able to trace explosive materials using these records.

Explosives storage facilities are inspected to ensure that explosive materials are properly secured against theft and located at minimum prescribed distances from inhabited buildings, public roads, and passenger railroads.

Under current law, any person who has knowledge of the theft or loss of explosive materials from his stock must report the theft or loss to ATF within 24 hours of discovery.

Following the September 11 terrorist attacks, ATF sent a letter urging all explosives licensees and permittees to take immediate measures to secure their explosives inventories. Between October and December 2001, ATF field personnel conducted 7,459 inspections of explosives licensees/permittees (out of a total of 9,400). ATF personnel encouraged the proprietors to report thefts, losses, or suspicious activity to ATF and the appropriate local authorities. ATF carried out these inspections to gauge internal security controls and report any unusual purchase attempts, break-ins, or any other anomalies that would indicate a breach to security.

In connection with the 7,459 inspections, ATF uncovered over 200 possible criminal violations. We also found 1,763 violations in recordkeeping, storage, and the conduct of business. Follow-up inspections will be required to ensure that corrective actions have been taken. In one instance, we revoked the license of a company which did not properly store approximately 4 million pounds of explosives materials. During the first half of Fiscal Year(FY) 2002, ATF identified and corrected 486 violations as a result of these inspections.

In addition to the inspections of explosives industry members after the September 11 attacks, ATF inspectors carried a considerable workload throughout the year, helping to ensure the lawful storage of explosives materials. In FY 01, inspectors completed 5,032 full inspections, which encompassed explosives application and compliance inspections. ATF opened investigations on 58 explosives thefts in FY 01, and ATF’s Arson and Explosives National Repository Branch (AENRB) recorded the thefts of nearly 50,000 pounds of explosives and the recovery of over 12,000 pounds.

ATF’S ROLE IN COMBATING TERRORISM

As with all law enforcement agencies in the United States today, ATF faces an unprecedented challenge. Our world in 2002 is very different than it was a year ago. The magnitude and effect of the attacks of September 11 cannot be measured, but we are committed to doing everything in our power to ensure the safety of all Americans from future attacks.

In response, ATF has aligned its priorities to the current priorities of the President and the Nation--anti-terrorism. ATF is charged with the responsibility of preventing terrorists from acquiring firearms and explosives. ATF’s statutory mandates and unparalleled investigative expertise place us in the forefront of this National effort.

Before and since September 11, ATF has been an active partner with other Federal, State and local law enforcement agencies in combating terrorism.

From illegal arms smuggling cases, to virtually every major bombing such as the 1993 World Trade Center bombing, the Oklahoma City Federal building bombing, and the Atlanta Olympics Centennial Park Bombing, ATF has played a significant role, lending its unique expertise to these investigations.

ATF’s role in investigating the illegal use of firearms and explosives dates back to 1934, with the enactment of the National Firearms Act. Under this law, the Secretary of the Treasury was directed to impose controls on machine guns, short-barreled weapons, other dangerous weapons, and "destructive devices." The term "destructive device" includes bombs, grenades, and mines. This authority was delegated to ATF’s predecessor bureau within the Internal Revenue Service. Subsequently, the Organized Crime Control Act of 1970, under 18 U.S.C. Section 846, gave the Secretary of the Treasury investigative jurisdiction with respect to Federal explosives laws, also delegated to ATF.

ATF RESOURCES IN COMBATTING TERRORISM

ATF employs a wide array of resources in the investigation of explosives incidents.

ATF is addressing violent arson and explosives-related crimes through enforcement and training. ATF’s arson and explosives programs provide a comprehensive proactive and reactive force in the fight to protect the American public from the criminal use of fire and explosives. Through these programs, ATF personnel work to prevent criminal and terrorist activity involving explosives at nearly every level of the regulatory and investigative process. ATF’s focus on arson and explosives crimes continues to be a major Bureau priority.

In FY 01, ATF submitted 220 explosives cases for prosecution, of which 303 defendants were recommended for prosecution.

Highlighted below are examples of ATF expertise and resources brought to bear in support of explosives investigations.

Our National Response Teams (NRTs) are comprised of highly trained and well-equipped professionals that can be deployed within 24 hours to major explosion and fire scenes anywhere in the United States. The teams are comprised of ATF’s most experienced fire and explosives investigators and supported by state-of-the art forensic laboratory equipment, chemists, accelerant or explosives-detecting canines, and intelligence resources. There have been 521 activations of the NRTs since 1978, the year of their inception. The NRTs were activated 26 times in FY 01 to investigate major fire and explosives incidents. These 26 activations involved 194 deaths, 24 injuries, and nearly $35.8 million in estimated property damages. An ATF NRT responded to the September 11, attack on the Pentagon as well. As of May 3, 2002, there have been 19 NRT activations.

In addition to investigating fire and explosives incidents, the NRTs provide assistance to other Federal, State, and local law enforcement agencies during special events. In fiscal years 2001 and 2002, the NRT provided support at the Special Olympics in Anchorage, the Asian Bank Conference in Honolulu, the Presidential Inauguration, and most recently, the Winter Olympics in Salt Lake City.

ATF’s International Response Team (IRT) participates with the Diplomatic Security Service of the Department of State to provide investigative assistance at international explosives and fire incidents. There have been 21 IRT activations since its inception in 1991. The team has responded to vehicle bombings in Peru and Macedonia, explosions in Argentina targeting the Israeli Embassy, and incidents in El Salvador, Ecuador, Surinam, Pakistan, Grenada, and Korea. In 2001, the IRT was activated three times to assist foreign governments in explosives investigations and fire scene examinations.

Also participating in many of these incidents were ATF’s Explosives Enforcement Officers (EEOs). EEOs conduct explosives operations in support of ATF investigative efforts.

They conduct render-safe procedures of improvised explosive devices, perform underwater explosives recoveries, make destructive device determinations and testify about these determinations in court, as well as participate in foreign country explosives capability assessments. These EEOs operate the "ARTS-V," the only fully functional remote transport vehicle-bomb disruption system designed to disrupt, at a safe distance, car and truck bombs too large to defeat by traditional methods. In FY 01, ATF EEOs traveled with the Department of State’s Antiterrorism Assistance Team to assess the capabilities of 10 foreign countries to respond to terrorist or explosives incidents. In addition, the EEOs participated in each National and International Response Team callout, testified in criminal proceedings 24 times, rendered 237 technical assists, wrote 389 technical statements, and performed many other tasks in support of ATF’s explosives mission.

ATF also relies on our Special Agent Certified Explosives Specialists (SACES) in combating terrorism and violent crime. Our SACES are trained to identify explosive devices. Additionally, they provide explosives technical support and assistance in explosives-related matters in the field, and are trained to assess destructive devices.

The ATF laboratories support investigations by offering scientific forensic services in the areas of alcohol, tobacco, arson, explosives, trace evidence, questioned documents, fingerprints, firearms, toolmarks, and automated ballistic identification (NIBIN).

ATF has forensic laboratories in Atlanta, San Francisco, and the Washington, DC, metro area. A new Fire Research Center under construction in the Washington, DC, metro area is scheduled for completion in March of 2003. ATF’s laboratory service is composed of over 130 chemists, forensic examiners, and support personnel. ATF laboratories, the first Federal accredited laboratories, are the only Federal accredited explosives laboratories in the United States, accredited by the American Society of Crime Laboratory Directors.

ATF has more personnel trained and experienced in examining fire and explosives evidence than any other laboratory in the United States. Over 70 chemists and forensic examiners are available to provide support from their respective laboratory sites.

The personnel from these laboratories assist in the collection of evidence at fire and explosives scenes and examine it to identify accelerants, incendiary devices components, and destructive device components. Evidence collected at the site of an explosion is examined to identify the explosives used and to identify blasting caps, leg wires, fuses, timing mechanisms, energy sources, igniters, tape, and other components used to construct the device. The ATF laboratories house the only complete library of smokeless powder samples in existence.

In 1996, Congress, recognizing ATF’s expertise in the investigation of fire/arson and explosives-related incidents, passed legislation authorizing the Secretary of the Treasury to establish a National Repository for information regarding arson incidents and the actual and suspected criminal misuse of explosives throughout the United States.

The Arson and Explosives National Repository Branch (AENRB) maintains a state-of-the-art database that contains detailed information on over 112,000 arson and explosives incidents. This database, the Arson and Explosives Incidents System (AEXIS), is used to trace stolen and recovered explosive material and military ordnance. In addition to providing vital investigative services to law enforcement personnel worldwide, the AENRB uses information from AEXIS to provide threat assessment support to Federal agencies and major event security task forces. The AENRB contains data on not only arson and explosives incidents, but destructive devices and their components, and information on the criminal use of explosives. This database is an investigative tool that can be queried and analyzed to provide information on trends in criminal use of explosives, similarities between different explosive devices, and other investigative leads.

In spring 2001, the AENRB embarked on a focused program to connect the Nation’s fire and explosion investigators to the latest in information communications and management technology.

The project, known as the Bomb Arson Tracking System (BATS), is designed to facilitate and promote the collection and dissemination of fire, arson, and explosives information among participating agencies. As presently envisioned, participating law enforcement agencies and members with established National Crime Information Center (NCIC) access will be able to access BATS via desktop computer and Internet. Once connected to the ATF-secured and maintained extranet server, participants will be able to enter information, query information (both locally and across agencies), and produce relevant reports.

The AENRB coordinates explosives intelligence internationally with 12 Bomb Data Centers throughout the world and is involved in planning and coordinating the establishment of Explosive Repository Centers in Mexico and Colombia. In FY 01, AENRB personnel provided presentations on the Repository’s capabilities to 2,158 representatives of Federal, State, local, and foreign law enforcement or explosives industry representatives.

ATF continues to vigorously enforce the Federal explosives and arson law by providing state-of-the-art training and expertise to Federal, State, local, and foreign law enforcement partners. This training is instrumental in preparing our law enforcement partners for the fight against terrorists who use explosives.

ATF’s Office of Training and Professional Development (TPD) provides the highest level of training available anywhere on the investigation of explosives and firearms-related incidents. ATF courses related to counter-terrorism include the Advanced Explosives Investigative Techniques, International Firearms and Explosives Identification, the Seminar on Terrorism and Explosives (SEMTEX), and the Post-blast Investigation Course, for foreign, Federal, State, and local law enforcement students.

ATF has trained hundreds of law enforcement officers from the United States and abroad in the techniques of conducting explosives-related investigations.

This type of training is ongoing and the international courses are funded through cooperative agreements with the State Department Anti-Terrorism Assistance Program and International Narcotics and Law Enforcement Affairs.

For the past several years, to protect the Nation's largest airports, the Federal Aviation Administration (FAA) and ATF have joined together to conduct SEMTEX and field training exercises that better prepare and train aviation, security, and law enforcement personnel in explosives countermeasure techniques. In FY 01, ATF trained 312 FAA personnel. ATF and FAA are currently updating this curriculum in light of September 11. In FY 02, 300 additional personnel are expected to be trained.

During FY 02, ATF, in conjunction with the U.S. Department of Education, is developing a CD-ROM training platform titled, "Bomb Threat Management and Response." This training CD-ROM will provide a standardized bomb threat management and response template that can be used by school administrators to develop a customized response program for their schools. This CD-ROM will be completed in the summer of 2002 and distributed to all school districts, local law enforcement offices, and ATF offices. It is anticipated that ATF field personnel will be called upon by the school districts to help establish and implement these management and response plans.

Additionally, ATF developed a course for bomb technicians on the safe destruction and disposal of explosive materials. The Advanced Explosives Destruction Techniques (AEDT) course was developed in response to the fact that far more injuries and deaths of bomb technicians occur during disposal operations than during render-safe operations. Over the course of a year and a half, ATF worked with many State and local bomb technicians, along with representatives from the Environmental Protection Agency, the Department of Transportation, the Consumer Product Safety Commission, and others to develop the course. Together, we developed a course that covers the safety, legal, logistical, operational, and health facets of explosives disposal/destruction operations.

ATF-certified accelerant and explosives detection handler/canine teams support ATF’s fire and explosives investigations. In FY 01, ATF’s six special agent/canine teams searched 10,356 vehicles, buildings, or items during the execution of Federal, State, or local search warrants, or in conjunction with searches or sweeps during ATF or Federal security details. Our canines supported preventive security efforts at such diverse events as the response to the September 11 attack on the Pentagon, the Special Olympics, the 2001 and 2002 Superbowl, the 2002 Winter Olympics, and many others.

The ATF Canine Training Center in Front Royal, Virginia, trains explosives and accelerant detection canines. In a training arrangement with the U.S. Department of State, ATF trains explosives detection canines for foreign countries to be used in the war against terrorism and to protect American travelers abroad. ATF has also trained and certified 310 explosives-detection canine teams for deployment in 13 countries around the world. Additionally, ATF has trained 47 explosives detection canine teams for other Federal, State, and local agencies, including the Federal Bureau of Investigation, the Central Intelligence Agency, and the Internal Revenue Service. With the funding provided in the FY 02 Anti-Terrorism Supplemental Appropriations Act we will be expanding the canine training center to meet the increasing demand for these resources. Since the start of the program, ATF has also trained and certified 94 accelerant-detection canines for State and local agencies.

ATF’s Explosives Study Group (ESG) is examining: 1) the feasibility of tagging explosive materials for purposes of detection and identification; 2) possibilities for rendering inert common chemicals used to manufacture explosive materials; 3) imposing controls on certain precursor chemicals used to manufacture explosives; 4)State licensing requirements for the purchase and use of commercial high explosives; and 5) the possible use of new prevention (explosives detection) technologies, as directed by section 732 of the Antiterrorism and Effective Death Penalty Act of 1996, as amended by the Omnibus Consolidated Appropriations Act for FY 97. A report on these findings is in the final stages of review.

The ESG has also compiled a comprehensive list of State licensing requirements for the purchase and use of commercial high explosives, and is currently consulting with State regulators and industry members to develop recommendations for consideration by Congress that would advance public safety.

The ESG has worked with The Fertilizer Institute (TFI) to expand the "Be Aware for America" program to address areas of vulnerability for distributors of ammonium nitrate fertilizer and agricultural chemicals. This expansion, the "Be Secure for America" program, is aimed at ensuring the security of the transportation, storage, and manufacturing of agricultural chemicals.

Additionally, ATF is conducting promising research at the Oak Ridge National Laboratory, including prototype development, engineering, and training on advanced sensing technologies for explosives detection. The objective is the development of a portable explosives detector that will function with a short, real-time response rate for trace amounts of explosives.

The ESG has continued to communicate and work with other Federal agencies such as the FAA, the Customs Service, the Department of Justice, and the Department of Energy. The goal is to achieve a coordinated effort to identify and direct resources toward the most promising technologies for both the detection of additives and the detection of explosive materials.

ATF, the Army Corps of Engineers, and the Defense Special Weapons Agency have been jointly conducting a multi-year research project called Dipole Might to create a database of information and a protocol for investigating large-scale vehicle bombs. This project analyzes blast effects of large vehicle bombs to allow for a more effective deployment of investigative resources and quicker analysis of recovered evidence following bombing events such as the World Trade Center, the Oklahoma City bombing, and the U.S. embassies in Kenya and Tanzania. Dipole Might is funded by the National Security Council.

ATF continues its tradition of partnering with other Federal, State, and local agencies on developing protocols and partnerships to efficiently utilize our resources in the fight against terrorism and violent crime. Some of the agencies we have partnered with include the Central Intelligence Agency, the Department of State, the Customs Service, the Secret Service, the National Transportation Safety Board, the Department of Justice, Federal Bureau of Investigation, the United States Department of Agriculture, the Chemical Safety and Hazard Investigation Board, and the new Transportation Security Administration.

Additionally, ATF has worked to establish a rapport with industry organizations such as the International Society of Explosives Engineers, the Institute of Makers of Explosives, the American Pyrotechnics Association, and the National Shooting Sports Foundation.

ATF’s criminal investigative analysts (Profilers) assigned to the FBI's National Center for the Analysis of Violent Crime (NCAVC), spent two years conducting research and interviewing 38 imprisoned bombing offenders. In June 2001, they published the findings of their joint study with the NCAVC. The study, "Behavior and Characteristics of Bomb Related Offenders," will serve as a catalyst for further research into understanding the motivations and characteristics of subjects who use explosives for criminal intent.

Our profilers are also assisting in our Nation's war on terrorism, and they are working with their FBI counterparts to conduct ongoing threat assessments, such as that for the G-8 Summit in Canada.

CONCLUSION

In summary, let me once again express my appreciation for the opportunity to appear before the Committee. It has been a privilege to provide you with background on ATF’s explosives resources and programs, as well as this legislative package which we believe will greatly enhance our Nation’s safety and homeland security. I would be happy to answer any questions you may have.

Fact Sheet for Judiciary Hearing on Explosives Legislation

Comparison of S.1956 and H.R.4864 with Existing Explosives Laws