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[104th Congress Public Law 237]
[From the U.S. Government Printing Office]

<DOC>
[DOCID: f:publ237.104]

[[Page 110 STAT. 3099]]

Public Law 104-237
104th Congress

                                 An Act

 
            To prevent the illegal manufacturing and use of 
          methamphetamine. <<NOTE: Oct. 3, 1996 -  [S. 1965]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress <<NOTE: Comprehensive 
Methamphetamine Control Act of 1996.>> assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short <<NOTE: 21 USC 801 note.>> Title.--This Act may be cited 
as the ``Comprehensive Methamphetamine Control Act of 1996''.

    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings.

     TITLE I--IMPORTATION OF METHAMPHETAMINE AND PRECURSOR CHEMICALS

Sec. 101. Support for international efforts to control drugs.
Sec. 102. Penalties for manufacture of listed chemicals outside the 
           United States with intent to import them into the United 
           States.

   TITLE II--PROVISIONS TO CONTROL THE MANUFACTURE OF METHAMPHETAMINE

Sec. 201. Seizure and forfeiture of regulated chemicals.
Sec. 202. Study and report on measures to prevent sales of agents used 
           in methamphetamine production.
Sec. 203. Increased penalties for manufacture and possession of 
           equipment used to make controlled substances.
Sec. 204. Addition of iodine and hydrochloric gas to list II.
Sec. 205. Civil penalties for firms that supply precursor chemicals.
Sec. 206. Injunctive relief.
Sec. 207. Restitution for cleanup of clandestine laboratory sites.
Sec. 208. Record retention.
Sec. 209. Technical amendments.
Sec. 210. Withdrawal of regulations.

   TITLE III--INCREASED PENALTIES FOR TRAFFICKING AND MANUFACTURE OF 
                     METHAMPHETAMINE AND PRECURSORS

Sec. 301. Penalty increases for trafficking in methamphetamine.
Sec. 302. Enhanced penalties for offenses involving certain listed 
           chemicals.
Sec. 303. Enhanced penalty for dangerous handling of controlled 
           substances: amendment of sentencing guidelines.

    TITLE IV--LEGAL MANUFACTURE, DISTRIBUTION, AND SALE OF PRECURSOR 
                                CHEMICALS

Sec. 401. Diversion of certain precursor chemicals.
Sec. 402. Mail order restrictions.

                     TITLE V--EDUCATION AND RESEARCH

Sec. 501. Interagency methamphetamine task force.
Sec. 502. Public health monitoring.
Sec. 503. Public-private education program.
Sec. 504. Suspicious orders task force.

[[Page 110 STAT. 3100]]

SEC. 2. <<NOTE: 21 USC 801 note.>>  FINDINGS.

    The Congress finds the following:
            (1) Methamphetamine is a very dangerous and harmful drug. It 
        is highly addictive and is associated with permanent brain 
        damage in long-term users.
            (2) The abuse of methamphetamine has increased dramatically 
        since 1990. This increased use has led to devastating effects on 
        individuals and the community, including--
                    (A) a dramatic increase in deaths associated with 
                methamphetamine ingestion;
                    (B) an increase in the number of violent crimes 
                associated with methamphetamine ingestion; and
                    (C) an increase in criminal activity associated with 
                the illegal importation of methamphetamine and precursor 
                compounds to support the growing appetite for this drug 
                in the United States.
            (3) Illegal methamphetamine manufacture and abuse presents 
        an imminent public health threat that warrants aggressive law 
        enforcement action, increased research on methamphetamine and 
        other substance abuse, increased coordinated efforts to prevent 
        methamphetamine abuse, and increased monitoring of the public 
        health threat methamphetamine presents to the communities of the 
        United States.

     TITLE I--IMPORTATION OF METHAMPHETAMINE AND PRECURSOR CHEMICALS

SEC. 101. SUPPORT <<NOTE: 21 USC 801 note.>>  FOR INTERNATIONAL 
                        EFFORTS TO CONTROL DRUGS.

    The Attorney General, in consultation with the Secretary of State, 
shall coordinate international drug enforcement efforts to decrease the 
movement of methamphetamine and methamphetamine precursors into the 
United States.
SEC. 102. PENALTIES FOR MANUFACTURE OF LISTED CHEMICALS OUTSIDE 
                        THE UNITED STATES WITH INTENT TO IMPORT 
                        THEM INTO THE UNITED STATES.

    (a) Unlawful Importation.--Section 1009(a) of the Controlled 
Substances Import and Export Act (21 U.S.C. 959(a)) is amended--
            (1) in the matter before paragraph (1), by inserting ``or 
        listed chemical'' after ``schedule I or II''; and
            (2) in paragraphs (1) and (2), by inserting ``or chemical'' 
        after ``substance''.

    (b) Unlawful Manufacture or Distribution.--Paragraphs (1) and (2) of 
section 1009(b) of the Controlled Substances Import and Export Act (21 
U.S.C. 959(b)) are amended by inserting ``or listed chemical'' after 
``controlled substance''.
    (c) Penalties.--Section 1010(d) of the Controlled Substances Import 
and Export Act (21 U.S.C. 960(d)) is amended--
            (1) in paragraph (5), by striking ``or'' at the end;
            (2) in paragraph (6), by striking the comma at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:

[[Page 110 STAT. 3101]]

            ``(7) manufactures, possesses with intent to distribute, or 
        distributes a listed chemical in violation of section 959 of 
        this title.''.

   TITLE II--PROVISIONS TO CONTROL THE MANUFACTURE OF METHAMPHETAMINE

SEC. 201. SEIZURE AND FORFEITURE OF REGULATED CHEMICALS.

    (a) Penalties for Simple Possession.--Section 404 of the Controlled 
Substances Act (21 U.S.C. 844) is amended--
            (1) in subsection (a)--
                    (A) by adding after the first sentence the 
                following: ``It shall be unlawful for any person 
                knowingly or intentionally to possess any list I 
                chemical obtained pursuant to or under authority of a 
                registration issued to that person under section 303 of 
                this title or section 1008 of title III if that 
                registration has been revoked or suspended, if that 
                registration has expired, or if the registrant has 
                ceased to do business in the manner contemplated by his 
                registration.''; and
                    (B) by striking ``drug or narcotic'' and inserting 
                ``drug, narcotic, or chemical'' each place it appears; 
                and
            (2) in subsection (c), by striking ``drug or narcotic'' and 
        inserting ``drug, narcotic, or chemical''.

    (b) Forfeitures.--Section 511(a) of the Controlled Substances Act 
(21 U.S.C. 881(a)) is amended--
            (1) in paragraphs (2) and (6), by inserting ``or listed 
        chemical'' after ``controlled substance'' each place it appears; 
        and
            (2) in paragraph (9), by--
                    (A) inserting ``dispensed, acquired,'' after 
                ``distributed,'' both places it appears; and
                    (B) striking ``a felony provision of''.

    (c) Seizure.--Section 607 of the Tariff Act of 1930 (19 U.S.C. 1607) 
is amended--
            (1) in subsection (a)(3), by inserting ``or listed 
        chemical'' after ``controlled substance''; and
            (2) by amending subsection (b) to read as follows:

    ``(b) As used in this section, the terms `controlled substance' and 
`listed chemical' have the meaning given such terms in section 102 of 
the Controlled Substances Act (21 U.S.C. 802).''.
SEC. 202. STUDY <<NOTE: 21 USC 872 note.>> AND REPORT ON MEASURES 
                        TO PREVENT SALES OF AGENTS USED IN 
                        METHAMPHETAMINE PRODUCTION.

    (a) Study.--The Attorney General of the United States shall conduct 
a study on possible measures to effectively prevent the diversion of red 
phosphorous, iodine, hydrochloric gas, and other agents for use in the 
production of methamphetamine. Nothing in this section shall preclude 
the Attorney General from taking any action the Attorney General already 
is authorized to take with regard to the regulation of listed chemicals 
under current law.
    (b) Report.--Not later than January 1, 1998, the Attorney General 
shall submit a report to the Congress of its findings pursu

[[Page 110 STAT. 3102]]

ant to the study conducted under subsection (a) on the need for and 
advisability of preventive measures.
    (c) Considerations.--In developing recommendations under subsection 
(b), the Attorney General shall consider--
            (1) the use of red phosphorous, iodine, hydrochloric gas, 
        and other agents in the illegal manufacture of methamphetamine;
            (2) the use of red phosphorous, iodine, hydrochloric gas, 
        and other agents for legitimate, legal purposes, and the impact 
        any regulations may have on these legitimate purposes; and
            (3) comments and recommendations from law enforcement, 
        manufacturers of such chemicals, and the consumers of such 
        chemicals for legitimate, legal purposes.
SEC. 203. INCREASED PENALTIES FOR MANUFACTURE AND POSSESSION OF 
                        EQUIPMENT USED TO MAKE CONTROLLED 
                        SUBSTANCES.

    (a) In General.--Section 403(d) of the Controlled Substances Act (21 
U.S.C. 843(d)) is amended--
            (1) by striking ``(d) Any person'' and inserting ``(d)(1) 
        Except as provided in paragraph (2), any person''; and
            (2) by adding at the end the following:

    ``(2) Any person who, with the intent to manufacture or to 
facilitate the manufacture of methamphetamine, violates paragraph (6) or 
(7) of subsection (a), shall be sentenced to a term of imprisonment of 
not more than 10 years, a fine of not more than $30,000, or both; except 
that if any person commits such a violation after one or more prior 
convictions of that person--
            ``(A) for a violation of paragraph (6) or (7) of subsection 
        (a);
            ``(B) for a felony under any other provision of this 
        subchapter or subchapter II of this chapter; or
            ``(C) under any other law of the United States or any State 
        relating to controlled substances or listed chemicals,

has become final, such person shall be sentenced to a term of 
imprisonment of not more than 20 years, a fine of not more than $60,000, 
or both.''.
    (b) Sentencing <<NOTE: 28 USC 994 note.>> Commission.--The United 
States Sentencing Commission shall amend the sentencing guidelines to 
ensure that the manufacture of methamphetamine in violation of section 
403(d)(2) of the Controlled Substances Act, as added by subsection (a), 
is treated as a significant violation.
SEC. 204. ADDITION OF IODINE AND HYDROCHLORIC GAS TO LIST II.

    (a) In General.--Section 102(35) of the Controlled Substances Act 
(21 U.S.C. 802(35)) is amended by adding at the end the following:
                    ``(I) Iodine.
                    ``(J) Hydrochloric gas.''.

    (b) Importation <<NOTE: 21 USC 971 note.>> and Exportation 
Requirements.--(1) Iodine shall not be subject to the requirements for 
listed chemicals provided in section 1018 of the Controlled Substances 
Import and Export Act (21 U.S.C. 971).

    (2) Effect of Exception.--The exception made by paragraph (1) shall 
not limit the authority of the Attorney General to impose the 
requirements for listed chemicals provided in section 1018 of the 
Controlled Substances Import and Export Act (21 U.S.C. 971).

[[Page 110 STAT. 3103]]

SEC. 205. CIVIL PENALTIES FOR FIRMS THAT SUPPLY PRECURSOR 
                        CHEMICALS.

    (a) Offenses.--Section 402(a) of the Controlled Substances Act (21 
U.S.C. 842(a)) is amended--
            (1) in paragraph (9), by striking ``or'' after the 
        semicolon;
            (2) in paragraph (10), by striking the period and inserting 
        ``; or''; and
            (3) by adding at the end the following:
            ``(11) to distribute a laboratory supply to a person who 
        uses, or attempts to use, that laboratory supply to manufacture 
        a controlled substance or a listed chemical, in violation of 
        this title or title III, with reckless disregard for the illegal 
        uses to which such a laboratory supply will be put.

As used in paragraph (11), the term `laboratory supply' means a listed 
chemical or any chemical, substance, or item on a special surveillance 
list published by the Attorney General, which contains chemicals, 
products, materials, or equipment used in the manufacture of controlled 
substances and listed chemicals. For purposes of paragraph (11), there 
is a rebuttable presumption of reckless disregard at trial if the 
Attorney General notifies a firm in writing that a laboratory supply 
sold by the firm, or any other person or firm, has been used by a 
customer of the notified firm, or distributed further by that customer, 
for the unlawful production of controlled substances or listed chemicals 
a firm distributes and 2 weeks or more after the notification the 
notified firm distributes a laboratory supply to the customer.''.
    (b) Civil Penalty.--Section 402(c)(2) of the Controlled Substances 
Act (21 U.S.C. 842(c)(2)) is amended by adding at the end the following:
            ``(C) In addition to the penalties set forth elsewhere in 
        this title or title III, any business that violates paragraph 
        (11) of subsection (a) shall, with respect to the first such 
        violation, be subject to a civil penalty of not more than 
        $250,000, but shall not be subject to criminal penalties under 
        this section, and shall, for any succeeding violation, be 
        subject to a civil fine of not more than $250,000 or double the 
        last previously imposed penalty, whichever is greater.''.

SEC. 206. INJUNCTIVE RELIEF.

    (a) Ten-Year Injunction Major Offenses.--Section 401(f) of the 
Controlled Substances Act (21 U.S.C. 841(f)) is amended by--
            (1) inserting ``manufacture, exportation,'' after 
        ``distribution,''; and
            (2) striking ``regulated''.

    (b) Ten-Year Injunction Other Offenses.--Section 403 of the 
Controlled Substances Act (21 U.S.C. 843) is amended--
            (1) in subsection (e), by--
                    (A) inserting ``manufacture, exportation,'' after 
                ``distribution,''; and
                    (B) striking ``regulated''; and
            (2) by adding at the end the following:

    ``(f) Injunctions.--(1) In addition to any penalty provided in this 
section, the Attorney General is authorized to commence a civil action 
for appropriate declaratory or injunctive relief relating to violations 
of this section or section 402.

[[Page 110 STAT. 3104]]

    ``(2) Any action under this subsection may be brought in the 
district court of the United States for the district in which the 
defendant is located or resides or is doing business.
    ``(3) Any order or judgment issued by the court pursuant to this 
subsection shall be tailored to restrain violations of this section or 
section 402.
    ``(4) The court shall proceed as soon as practicable to the hearing 
and determination of such an action. An action under this subsection is 
governed by the Federal Rules of Civil Procedure except that, if an 
indictment has been returned against the respondent, discovery is 
governed by the Federal Rules of Criminal Procedure.''.
SEC. 207. RESTITUTION FOR CLEANUP OF CLANDESTINE LABORATORY SITES.

    Section 413 of the Controlled Substances Act (21 U.S.C. 853) is 
amended by adding at the end the following:
    ``(q) The court, when sentencing a defendant convicted of an offense 
under this title or title III involving the manufacture of 
methamphetamine, may--
            ``(1) order restitution as provided in sections 3612 and 
        3664 of title 18, United States Code;
            ``(2) order the defendant to reimburse the United States for 
        the costs incurred by the United States for the cleanup 
        associated with the manufacture of methamphetamine by the 
        defendant; and
            ``(3) order restitution to any person injured as a result of 
        the offense as provided in section 3663 of title 18, United 
        States Code.''.

SEC. 208. RECORD RETENTION.

    Section 310(a)(1) of the Controlled Substances Act (21 U.S.C. 
830(a)(1)) is amended by striking the dash after ``transaction'' and 
subparagraphs (A) and (B) and inserting ``for two years after the date 
of the transaction.''.

SEC. 209. TECHNICAL AMENDMENTS.

    Section 102 of the Controlled Substances Act (21 U.S.C. 802) is 
amended--
            (1) in paragraph (34), by amending subparagraphs (P), (S), 
        and (U) to read as follows:
                    ``(P) Isosafrole.
                    ``(S) N-Methylephedrine.
                    ``(U) Hydriodic acid.''; and
            (2) in paragraph (35), by amending subparagraph (G) to read 
        as follows:
                    ``(G) 2-Butanone (or Methyl Ethyl Ketone).''.

SEC. 210. <<NOTE: Federal Register, publication.>> WITHDRAWAL OF 
            REGULATIONS.

    The final rule concerning removal of exemption for certain 
pseudoephedrine products marketed under the Federal Food, Drug, and 
Cosmetic Act published in the Federal Register of August 7, 1996 (61 FR 
40981-40993) is null and void and of no force or effect.

[[Page 110 STAT. 3105]]

   TITLE III--INCREASED PENALTIES FOR TRAFFICKING AND MANUFACTURE OF 
                     METHAMPHETAMINE AND PRECURSORS

SEC. 301. PENALTY <<NOTE: 28 USC 994 note.>> INCREASES FOR 
                        TRAFFICKING IN METHAMPHETAMINE.

    (a) Directive to the United States Sentencing Commission.--Pursuant 
to its authority under section 994 of title 28, United States Code, the 
United States Sentencing Commission shall review and amend its 
guidelines and its policy statements to provide for increased penalties 
for unlawful manufacturing, importing, exporting, and trafficking of 
methamphetamine, and other similar offenses, including unlawful 
possession with intent to commit any of those offenses, and attempt and 
conspiracy to commit any of those offenses. The Commission shall submit 
to Congress explanations therefor and any additional policy 
recommendations for combating methamphetamine offenses.
    (b) In General.--In carrying out this section, the Commission shall 
ensure that the sentencing guidelines and policy statements for 
offenders convicted of offenses described in subsection (a) and any 
recommendations submitted under such subsection reflect the heinous 
nature of such offenses, the need for aggressive law enforcement action 
to fight such offenses, and the extreme dangers associated with unlawful 
activity involving methamphetamine, including--
            (1) the rapidly growing incidence of methamphetamine abuse 
        and the threat to public safety such abuse poses;
            (2) the high risk of methamphetamine addiction;
            (3) the increased risk of violence associated with 
        methamphetamine trafficking and abuse; and
            (4) the recent increase in the illegal importation of 
        methamphetamine and precursor chemicals.
SEC. 302. ENHANCED PENALTIES FOR OFFENSES INVOLVING CERTAIN LISTED 
                        CHEMICALS.

    (a) Controlled Substances Act.--Section 401(d) of the Controlled 
Substances Act (21 U.S.C. 841(d)) is amended by striking ``not more than 
10 years,'' and inserting ``not more than 20 years in the case of a 
violation of paragraph (1) or (2) involving a list I chemical or not 
more than 10 years in the case of a violation of this subsection other 
than a violation of paragraph (1) or (2) involving a list I chemical,''.
    (b) Controlled Substance Import and Export Act.--Section 1010(d) of 
the Controlled Substance Import and Export Act (21 U.S.C. 960(d)) is 
amended by striking ``not more than 10 years,'' and inserting ``not more 
than 20 years in the case of a violation of paragraph (1) or (3) 
involving a list I chemical or not more than 10 years in the case of a 
violation of this subsection other than a violation of paragraph (1) or 
(3) involving a list I chemical,''.
    (c) Sentencing <<NOTE: 28 USC 994 note.>> Guidelines.--
            (1) In general.--The United States Sentencing Commission 
        shall, in accordance with the procedures set forth in section 
        21(a) of the Sentencing Act of 1987, as though the authority of 
        that section had not expired, amend the sentencing guidelines

[[Page 110 STAT. 3106]]

        to increase by at least two levels the offense level for 
        offenses involving list I chemicals under--
                    (A) section 401(d) (1) and (2) of the Controlled 
                Substances Act (21 U.S.C 841(d) (1) and (2)); and
                    (B) section 1010(d) (1) and (3) of the Controlled 
                Substance Import and Export Act (21 U.S.C. 960(d) (1) 
                and (3)).
            (2) Requirement.--In carrying out this subsection, the 
        Commission shall ensure that the offense levels for offenses 
        referred to in paragraph (1) are calculated proportionally on 
        the basis of the quantity of controlled substance that 
        reasonably could have been manufactured in a clandestine setting 
        using the quantity of the list I chemical possessed, 
        distributed, imported, or exported.
SEC. 303. ENHANCED <<NOTE: 28 USC 994 note.>> PENALTY FOR 
                        DANGEROUS HANDLING OF CONTROLLED 
                        SUBSTANCES: AMENDMENT OF SENTENCING 
                        GUIDELINES.

    (a) In General.--Pursuant to its authority under section 994 of 
title 28, United States Code, the United States Sentencing Commission 
shall determine whether the Sentencing Guidelines adequately punish the 
offenses described in subsection (b) and, if not, promulgate guidelines 
or amend existing guidelines to provide an appropriate enhancement of 
the punishment for a defendant convicted of such an offense.
    (b) Offense.--The offense referred to in subsection (a) is a 
violation of section 401(d), 401(g)(1), 403(a)(6), or 403(a)(7) of the 
Controlled Substances Act (21 U.S.C. 841(d), 841(g)(1), 843(a)(6), and 
843(a)(7)), in cases in which in the commission of the offense the 
defendant violated--
            (1) subsection (d) or (e) of section 3008 of the Solid Waste 
        Disposal Act (relating to handling hazardous waste in a manner 
        inconsistent with Federal or applicable State law);
            (2) section 103(b) of the Comprehensive Environmental 
        Response, Compensation and Liability Act (relating to failure to 
        notify as to the release of a reportable quantity of a hazardous 
        substance into the environment);
            (3) section 301(a), 307(d), 309(c)(2), 309(c)(3), 311(b)(3), 
        or 311(b)(5) of the Federal Water Pollution Control Act 
        (relating to the unlawful discharge of pollutants or hazardous 
        substances, the operation of a source in violation of a 
        pretreatment standard, and the failure to notify as to the 
        release of a reportable quantity of a hazardous substance into 
        the water); or
            (4) section 5124 of title 49, United States Code (relating 
        to violations of laws and regulations enforced by the Department 
        of Transportation with respect to the transportation of 
        hazardous material).

    TITLE IV--LEGAL MANUFACTURE, DISTRIBUTION, AND SALE OF PRECURSOR 
                                CHEMICALS

SEC. 401. DIVERSION OF CERTAIN PRECURSOR CHEMICALS.

    (a) In General.--Section 102(39) of the Controlled Substances Act 
(21 U.S.C. 802(39)) is amended--

[[Page 110 STAT. 3107]]

            (1) in subparagraph (A)(iv)(I)(aa), by striking ``as'' 
        through the semicolon and inserting ``, pseudoephedrine or its 
        salts, optical isomers, or salts of optical isomers, or 
        phenylpropanolamine or its salts, optical isomers, or salts of 
        optical isomers unless otherwise provided by regulation of the 
        Attorney General issued pursuant to section 204(e) of this 
        title;''; and
            (2) in subparagraph (A)(iv)(II), by inserting ``, 
        pseudoephedrine, phenylpropanolamine,'' after ``ephedrine''.

    (b) Legitimate Retailers.--Section 102 of the Controlled Substances 
Act (21 U.S.C. 802) is amended--
            (1) in paragraph (39)(A)(iv)(I)(aa), by adding before the 
        semicolon the following: ``, except that any sale of ordinary 
        over-the-counter pseudoephedrine or phenylpropanolamine products 
        by retail distributors shall not be a regulated transaction 
        (except as provided in section 401(d) of the Comprehensive 
        Methamphetamine Control Act of 1996)'';
            (2) in paragraph (39)(A)(iv)(II), by adding before the 
        semicolon the following: ``, except that the threshold for any 
        sale of products containing pseudoephedrine or 
        phenylpropanolamine products by retail distributors or by 
        distributors required to submit reports by section 310(b)(3) of 
        this title shall be 24 grams of pseudoephedrine or 24 grams of 
        phenylpropanolamine in a single transaction'';
            (3) by redesignating paragraph (43) relating to felony drug 
        offense as paragraph (44); and
            (4) by adding at the end the following:
            ``(45) The term `ordinary over-the-counter pseudoephedrine 
        or phenylpropanolamine product' means any product containing 
        pseudoephedrine or phenylpropanolamine that is--
                    ``(A) regulated pursuant to this title; and
                    ``(B)(i) except for liquids, sold in package sizes 
                of not more than 3.0 grams of pseudoephedrine base or 
                3.0 grams of phenylpropanolamine base, and that is 
                packaged in blister packs, each blister containing not 
                more than two dosage units, or where the use of blister 
                packs is technically infeasible, that is packaged in 
                unit dose packets or pouches; and
                    ``(ii) for liquids, sold in package sizes of not 
                more than 3.0 grams of pseudoephedrine base or 3.0 grams 
                of phenylpropanolamine base.
            ``(46)(A) The term `retail distributor' means a grocery 
        store, general merchandise store, drug store, or other entity or 
        person whose activities as a distributor relating to 
        pseudoephedrine or phenylpropanolamine products are limited 
        almost exclusively to sales for personal use, both in number of 
        sales and volume of sales, either directly to walk-in customers 
        or in face-to-face transactions by direct sales.
            ``(B) For purposes of this paragraph, sale for personal use 
        means the sale of below-threshold quantities in a single 
        transaction to an individual for legitimate medical use.
            ``(C) For purposes of this paragraph, entities are defined 
        by reference to the Standard Industrial Classification (SIC) 
        code, as follows:
                    ``(i) A grocery store is an entity within SIC code 
                5411.
                    ``(ii) A general merchandise store is an entity 
                within SIC codes 5300 through 5399 and 5499.
                    ``(iii) A drug store is an entity within SIC code 
                5912.''.

[[Page 110 STAT. 3108]]

    (c) Reinstatement of Legal Drug Exemption.--Section 204 of the 
Controlled Substances Act (21 U.S.C. 814) is amended by adding at the 
end the following new subsection:
    ``(e) Reinstatement <<NOTE: Regulations.>> of Exemption With Respect 
to Ephedrine, Pseudoephedrine, and Phenylpropanolamine Drug Products.--
Pursuant to subsection (d)(1), the Attorney General shall by regulation 
reinstate the exemption with respect to a particular ephedrine, 
pseudoephedrine, or phenylpropanolamine drug product if the Attorney 
General determines that the drug product is manufactured and distributed 
in a manner that prevents diversion. In making this determination the 
Attorney General shall consider the factors listed in subsection (d)(2). 
Any regulation issued pursuant to this subsection may be amended or 
revoked based on the factors listed in subsection (d)(4).''.

    (d) Regulation <<NOTE: 21 USC 802 note.>> of Retail Sales.--
            (1) Pseudoephedrine.--
                    (A) Limit.--
                          (i) In general.--Not sooner than the effective 
                      date of this section and subject to the 
                      requirements of clause (ii), the Attorney General 
                      may establish by regulation a single-transaction 
                      limit of 24 grams of pseudoephedrine base for 
                      retail distributors. Notwithstanding any other 
                      provision of law, the single-transaction threshold 
                      quantity for pseudoephedrine-containing compounds 
                      may not be lowered beyond that established in this 
                      paragraph.
                          (ii) Conditions.--In order to establish a 
                      single-transaction limit of 24 grams of 
                      pseudoephedrine base, the Attorney General shall 
                      establish, following notice, comment, and an 
                      informal hearing that since the date of enactment 
                      of this Act there are a significant number of 
                      instances where ordinary over-the-counter 
                      pseudoephedrine products as established in 
                      paragraph (45) of section 102 of the Controlled 
                      Substances Act (21 U.S.C. 802(45)), as added by 
                      this Act, sold by retail distributors as 
                      established in paragraph (46) in section 102 of 
                      the Controlled Substances Act (21 U.S.C. 802(46)), 
                      are being widely used as a significant source of 
                      precursor chemicals for illegal manufacture of a 
                      controlled substance for distribution or sale.
                    (B) Violation.--Any individual or business that 
                violates the thresholds established in this paragraph 
                shall, with respect to the first such violation, receive 
                a warning letter from the Attorney General and, if a 
                business, the business shall be required to conduct 
                mandatory education of the sales employees of the firm 
                with regard to the legal sales of pseudoephedrine. For a 
                second violation occurring within 2 years of the first 
                violation, the business or individual shall be subject 
                to a civil penalty of not more than $5,000. For any 
                subsequent violation occurring within 2 years of the 
                previous violation, the business or individual shall be 
                subject to a civil penalty not to exceed the amount of 
                the previous civil penalty plus $5,000.
            (2) Phenylpropanolamine.--
                    (A) Limit.--
                          (i) In general.--Not sooner than the effective 
                      date of this section and subject to the 
                      requirements of clause

[[Page 110 STAT. 3109]]

                      (ii), the Attorney General may establish by 
                      regulation a single-transaction limit of 24 grams 
                      of phenylpropanolamine base for retail 
                      distributors. Notwithstanding any other provision 
                      of law, the single-transaction threshold quantity 
                      for phenylpropanolamine-containing compounds may 
                      not be lowered beyond that established in this 
                      paragraph.
                          (ii) Conditions.--In order to establish a 
                      single-transaction limit of 24 grams of 
                      phenylpropanolamine base, the Attorney General 
                      shall establish, following notice, comment, and an 
                      informal hearing, that since the date of enactment 
                      of this Act there are a significant number of 
                      instances where ordinary over-the-counter 
                      phenylpropanolamine products as established in 
                      paragraph (45) of section 102 of the Controlled 
                      Substances Act (21 U.S.C. 802(45)), as added by 
                      this Act, sold by retail distributors as 
                      established in paragraph (46) in section 102 of 
                      the Controlled Substances Act (21 U.S.C. 802(46)), 
                      are being used as a significant source of 
                      precursor chemicals for illegal manufacture of a 
                      controlled substance in bulk.
                    (B) Violation.--Any individual or business that 
                violates the thresholds established in this paragraph 
                shall, with respect to the first such violation, receive 
                a warning letter from the Attorney General and, if a 
                business, the business shall be required to conduct 
                mandatory education of the sales employees of the firm 
                with regard to the legal sales of pseudoephedrine. For a 
                second violation occurring within 2 years of the first 
                violation, the business or individual shall be subject 
                to a civil penalty of not more than $5,000. For any 
                subsequent violation occurring within 2 years of the 
                previous violation, the business or individual shall be 
                subject to a civil penalty not to exceed the amount of 
                the previous civil penalty plus $5,000.
            (3) Significant number of instances.--
                    (A) In general.--For purposes of this subsection, 
                isolated or infrequent use, or use in insubstantial 
                quantities, of ordinary over-the-counter pseudoephedrine 
                or phenylpropanolamine, as defined in section 102(45) of 
                the Controlled Substances Act, as added by section 
                401(b) of this Act, and sold at the retail level for the 
                illicit manufacture of methamphetamine or amphetamine 
                may not be used by the Attorney General as the basis for 
                establishing the conditions under paragraph (1)(A)(ii) 
                of this subsection, with respect to pseudoephedrine, and 
                paragraph (2)(A)(ii) of this subsection, with respect to 
                phenylpropanolamine.
                    (B) Considerations and report.--The Attorney General 
                shall--
                          (i) in establishing a finding under paragraph 
                      (1)(A)(ii) or (2)(A)(ii) of this subsection, 
                      consult with the Secretary of Health and Human 
                      Services in order to consider the effects on 
                      public health that would occur from the 
                      establishment of new single transaction limits as 
                      provided in such paragraph; and
                          (ii) upon establishing a finding, transmit a 
                      report to the Committees on the Judiciary in both, 
                      respectively, the House of Representatives and the 
                      Senate

[[Page 110 STAT. 3110]]

                      in which the Attorney General will provide the 
                      factual basis for establishing the new single 
                      transaction limits.
            (4) Definition of business.--For purposes of this 
        subsection, the term ``business'' means the entity that makes 
        the direct sale and does not include the parent company of a 
        business not involved in a direct sale regulated by this 
        subsection.
            (5) Judicial review.--Any regulation promulgated by the 
        Attorney General under this section shall be subject to judicial 
        review pursuant to section 507 of the Controlled Substances Act 
        (21 U.S.C. 877).

    (e) Effect <<NOTE: 21 USC 802 note.>> on Thresholds.--Nothing in the 
amendments made by subsection (b) or the provisions of subsection (d) 
shall affect the authority of the Attorney General to modify thresholds 
(including cumulative thresholds) for retail distributors for products 
other than ordinary over-the-counter pseudoephedrine or 
phenylpropanolamine products (as defined in section 102(45) of the 
Controlled Substances Act, as added by this section) or for non-retail 
distributors, importers, or exporters.

    (f) Combination <<NOTE: 21 USC 802 note.>> Ephedrine Products.--
            (1) In general.--For the purposes of this section, 
        combination ephedrine products shall be treated the same as 
        pseudoephedrine products, except that--
                    (A) a single transaction limit of 24 grams shall be 
                effective as of the date of enactment of this Act and 
                shall apply to sales of all combination ephedrine 
                products, notwithstanding the form in which those 
                products are packaged, made by retail distributors or 
                distributors required to submit a report under section 
                310(b)(3) of the Controlled Substances Act (as added by 
                section 402 of this Act);
                    (B) for regulated transactions for combination 
                ephedrine products other than sales described in 
                subparagraph (A), the transaction limit shall be--
                          (i) 1 kilogram of ephedrine base, effective on 
                      the date of enactment of this Act; or
                          (ii) a threshold other than the threshold 
                      described in clause (i), if established by the 
                      Attorney General not earlier than 1 year after the 
                      date of enactment of this Act; and
                    (C) the penalties provided in subsection (d)(1)(B) 
                of this section shall take effect on the date of 
                enactment of this Act for any individual or business 
                that violates the single transaction limit of 24 grams 
                for combination ephedrine products.
            (2) Definition.--For the purposes of this section, the term 
        ``combination ephedrine product'' means a drug product 
        containing ephedrine or its salts, optical isomers, or salts of 
        optical isomers and therapeutically significant quantities of 
        another active medicinal ingredient.

    (g) Effective <<NOTE: 21 USC 802 note.>> Date of This Section.--
Notwithstanding any other provision of this Act, this section shall not 
apply to the sale of any pseudoephedrine or phenylpropanolamine product 
prior to 12 months after the date of enactment of this Act, except that, 
on application of a manufacturer of a particular pseudoephedrine or 
phenylpropanolamine drug product, the Attorney General may, in her sole 
discretion, extend such effective date up to an additional

[[Page 110 STAT. 3111]]

six months. Notwithstanding any other provision of law, the decision of 
the Attorney General on such an application shall not be subject to 
judicial review.

SEC. 402. MAIL ORDER RESTRICTIONS.

    Section 310(b) of the Controlled Substances Act (21 U.S.C. 830(b)) 
is amended by adding at the end the following:
            ``(3) Mail order reporting.--(A) Each regulated person who 
        engages in a transaction with a nonregulated person which--
                    ``(i) involves ephedrine, pseudoephedrine, or 
                phenylpropanolamine (including drug products containing 
                these chemicals); and
                    ``(ii) <<NOTE: Regulations.>> uses or attempts to 
                use the Postal Service or any private or commercial 
                carrier;
        shall, on a monthly basis, submit a report of each such 
        transaction conducted during the previous month to the Attorney 
        General in such form, containing such data, and at such times as 
        the Attorney General shall establish by regulation.
            ``(B) The data required for such reports shall include--
                    ``(i) the name of the purchaser;
                    ``(ii) the quantity and form of the ephedrine, 
                pseudoephedrine, or phenylpropanolamine purchased; and
                    ``(iii) the address to which such ephedrine, 
                pseudoephedrine, or phenylpropanolamine was sent.''.

                     TITLE V--EDUCATION AND RESEARCH

SEC. 501. <<NOTE: 21 USC 801 note.>> INTERAGENCY METHAMPHETAMINE TASK 
            FORCE.

    (a) Establishment.--There is established a ``Methamphetamine 
Interagency Task Force'' (referred to as the ``interagency task force'') 
which shall consist of the following members:
            (1) The Attorney General, or a designee, who shall serve as 
        chair.
            (2) 2 representatives selected by the Attorney General.
            (3) The Secretary of Education or a designee.
            (4) The Secretary of Health and Human Services or a 
        designee.
            (5) 2 representatives of State and local law enforcement and 
        regulatory agencies, to be selected by the Attorney General.
            (6) 2 representatives selected by the Secretary of Health 
        and Human Services.
            (7) 5 nongovernmental experts in drug abuse prevention and 
        treatment to be selected by the Attorney General.

    (b) Responsibilities.--The interagency task force shall be 
responsible for designing, implementing, and evaluating the education 
and prevention and treatment practices and strategies of the Federal 
Government with respect to methamphetamine and other synthetic 
stimulants.
    (c) Meetings.--The interagency task force shall meet at least once 
every 6 months.
    (d) Funding.--The administrative expenses of the interagency task 
force shall be paid out of existing Department of Justice 
appropriations.
    (e) FACA.--The <<NOTE: Applicability.>> Federal Advisory Committee 
Act (5 U.S.C. App. 2) shall apply to the interagency task force.

[[Page 110 STAT. 3112]]

    (f) Termination.--The interagency task force shall terminate 4 years 
after the date of enactment of this Act.

SEC. 502. <<NOTE: 42 USC 290aa-4 note.>>  PUBLIC HEALTH MONITORING.

    The Secretary of Health and Human Services shall develop a public 
health monitoring program to monitor methamphetamine abuse in the United 
States. The program shall include the collection and dissemination of 
data related to methamphetamine abuse which can be used by public health 
officials in policy development.

SEC. 503. <<NOTE: 21 USC 872a.>> PUBLIC-PRIVATE EDUCATION PROGRAM.

    (a) Advisory Panel.--The Attorney General shall establish an 
advisory panel consisting of an appropriate number of representatives 
from Federal, State, and local law enforcement and regulatory agencies 
with experience in investigating and prosecuting illegal transactions of 
precursor chemicals. The Attorney General shall convene the panel as 
often as necessary to develop and coordinate educational programs for 
wholesale and retail distributors of precursor chemicals and supplies.
    (b) Continuation of Current Efforts.--The Attorney General shall 
continue to--
            (1) maintain an active program of seminars and training to 
        educate wholesale and retail distributors of precursor chemicals 
        and supplies regarding the identification of suspicious 
        transactions and their responsibility to report such 
        transactions; and
            (2) provide assistance to State and local law enforcement 
        and regulatory agencies to facilitate the establishment and 
        maintenance of educational programs for distributors of 
        precursor chemicals and supplies.

SEC. 504. <<NOTE: Establishment. 21 USC 801 note.>> SUSPICIOUS ORDERS 
            TASK FORCE.

    (a) In General.--The Attorney General shall establish a ``Suspicious 
Orders Task Force'' (the ``Task Force'') which shall consist of--
            (1) appropriate personnel from the Drug Enforcement 
        Administration (the ``DEA'') and other Federal, State, and local 
        law enforcement and regulatory agencies with the experience in 
        investigating and prosecuting illegal transactions of listed 
        chemicals and supplies; and
            (2) representatives from the chemical and pharmaceutical 
        industry.

    (b) Responsibilities.--The Task Force shall be responsible for 
developing proposals to define suspicious orders of listed chemicals, 
and particularly to develop quantifiable parameters which can be used by 
registrants in determining if an order is a suspicious order which must 
be reported to DEA. The quantifiable parameters to be addressed will 
include frequency of orders, deviations from prior orders, and size of 
orders. The Task Force shall also recommend provisions as to what types 
of payment practices or unusual business practices shall constitute 
prima facie suspicious orders. In evaluating the proposals, the Task 
Force shall consider effectiveness, cost and feasibility for industry 
and government, and other relevant factors.
    (c) Meetings.--The Task Force shall meet at least two times per year 
and at such other times as may be determined necessary by the Task 
Force.

[[Page 110 STAT. 3113]]

    (d) Report.--The Task Force shall present a report to the Attorney 
General on its proposals with regard to suspicious orders and the 
electronic reporting of suspicious orders within one year of the date of 
enactment of this Act. Copies of the report shall be forwarded to the 
Committees of the Senate and House of Representatives having 
jurisdiction over the regulation of listed chemical and controlled 
substances.
    (e) Funding.--The administrative expenses of the Task Force shall be 
paid out of existing Department of Justice funds or appropriations.
    (f) FACA.--The <<NOTE: Applicability.>> Federal Advisory Committee 
Act (5 U.S.C. App. 2) shall apply to the Task Force.

    (g) Termination.--The Task Force shall terminate upon presentation 
of its report to the Attorney General, or two years after the date of 
enactment of this Act, whichever is sooner.

    Approved October 3, 1996.

LEGISLATIVE HISTORY--S. 1965 (H.R. 3852):
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 142 (1996):
            Sept. 17, considered and passed Senate.
            Sept. 25, 26, H.R. 3852 considered and passed House.
            Sept. 28, S. 1965 considered and passed House.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):
            Oct. 3, Presidential statement.

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