PUBLIC LAW 104–237—OCT. 3, 1996 110 STAT. 3099

Public Law 104–237

104th Congress

An Act

To prevent the illegal manufacturing and use of methamphetamine.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

(a) SHORT 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.

21 USC 801 note.

Comprehensive

Methamphetamine Control

Act of 1996.

Oct. 3, 1996

[S. 1965]
110 STAT. 3100 PUBLIC LAW 104–237—OCT. 3, 1996

SEC. 2. 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 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:

21 USC 801 note.

21 USC 801 note.
PUBLIC LAW 104–237—OCT. 3, 1996 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 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 pursuant

21 USC 872 note.
110 STAT. 3102 PUBLIC LAW 104–237—OCT. 3, 1996

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 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 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).

21 USC 971 note.

28 USC 994 note.
PUBLIC LAW 104–237—OCT. 3, 1996 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.
110 STAT. 3104 PUBLIC LAW 104–237—OCT. 3, 1996

‘‘(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. 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.

Federal Register,

publication.
PUBLIC LAW 104–237—OCT. 3, 1996 110 STAT. 3105

TITLE III—INCREASED PENALTIES FOR

TRAFFICKING AND MANUFACTURE OF

METHAMPHETAMINE AND PRECURSORS

SEC. 301. PENALTY INCREASES FOR TRAFFICKING IN METHAMPHETAMINE.

(a) DIRECTIVE TO THE UNITED STATES SENTENCING COMMIS- SION.—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 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

28 USC 994 note.

28 USC 994 note.
110 STAT. 3106 PUBLIC LAW 104–237—OCT. 3, 1996

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 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—

28 USC 994 note.
PUBLIC LAW 104–237—OCT. 3, 1996 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-toface 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.’’.
110 STAT. 3108 PUBLIC LAW 104–237—OCT. 3, 1996

(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 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 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 singletransaction 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

21 USC 802 note.

Regulations.
PUBLIC LAW 104–237—OCT. 3, 1996 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 phenylpropanolaminecontaining compounds may not be lowered beyond that

established in this paragraph.

(ii) CONDITIONS.—In order to establish a singletransaction 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
110 STAT. 3110 PUBLIC LAW 104–237—OCT. 3, 1996

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 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 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 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

21 USC 802 note.

21 USC 802 note.

21 USC 802 note.
PUBLIC LAW 104–237—OCT. 3, 1996 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) 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. 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 Federal Advisory Committee Act (5 U.S.C.

App. 2) shall apply to the interagency task force.

Applicability.

21 USC 801 note.

Regulations.
110 STAT. 3112 PUBLIC LAW 104–237—OCT. 3, 1996

(f) TERMINATION.—The interagency task force shall terminate

4 years after the date of enactment of this Act.

SEC. 502. 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. 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. 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.

Establishment.

21 USC 801 note.

21 USC 872a.

42 USC 290aa–4

note.
PUBLIC LAW 104–237—OCT. 3, 1996 110 STAT. 3113

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.

Æ

(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 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.

Applicability.