Calendar No. 566

104TH CONGRESS

2D SESSION S. 1965

A BILL

To prevent the illegal manufacturing and use of

methamphetamine.

AUGUST 2, 1996

Ordered to be placed on the calendar
II

Calendar No. 566

104TH CONGRESS

2D SESSION S. 1965

To prevent the illegal manufacturing and use of methamphetamine.

IN THE SENATE OF THE UNITED STATES

JULY 17, 1996

Mr. HATCH (for himself, Mr. BIDEN, Mrs. FEINSTEIN, Mr. GRASSLEY, Mr.

SPECTER, Mr. WYDEN, Mr. DEWINE, Mr. HARKIN, Mr. D’AMATO, Mr.

KYL, Mr. REID, Mr. ASHCROFT, Mr. FEINGOLD, Mr. MCCAIN, and Mr.

DASCHLE) introduced the following bill; which was read twice and ordered held at the desk

AUGUST 2, 1996

Ordered to be placed on the calendar

A BILL

To prevent the illegal manufacturing and use of

methamphetamine.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Comprehensive Methamphetamine Control Act of 1996’’.
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1 (b) TABLE OF CONTENTS.—The table of contents for

2 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.

TITLE III—INCREASED PENALTIES FOR TRAFFICKING AND

MANUFACTURE OF METHAMPHETAMINE AND PRECURSORS

Sec. 301. Trafficking in methamphetamine penalty increases.

Sec. 302. Penalty increases for trafficking in 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.

3 SEC. 2. FINDINGS.

4 The Congress finds the following:
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1 (1) Methamphetamine is a very dangerous and

2 harmful drug. It is highly addictive and is associated

3 with permanent brain damage in long-term users.

4 (2) The abuse of methamphetamine has in5 creased dramatically since 1990. This increased use

6 has led to devastating effects on individuals and the

7 community, including—

8 (A) a dramatic increase in deaths associ9 ated with methamphetamine ingestion;

10 (B) an increase in the number of violent

11 crimes associated with methamphetamine inges12 tion; and

13 (C) an increase in criminal activity associ14 ated with the illegal importation of meth15 amphetamine and precursor compounds to sup16 port the growing appetite for this drug in the

17 United States.

18 (3) Illegal methamphetamine manufacture and

19 abuse presents an imminent public health threat

20 that warrants aggressive law enforcement action, in21 creased research on methamphetamine and other

22 substance abuse, increased coordinated efforts to

23 prevent methamphetamine abuse, and increased

24 monitoring of the public health threat methamphet-
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1 amine presents to the communities of the United

2 States.

3 TITLE I—IMPORTATION OF

4 METHAMPHETAMINE AND

5 PRECURSOR CHEMICALS

6 SEC. 101. SUPPORT FOR INTERNATIONAL EFFORTS TO CON7 TROL DRUGS.

8 The Attorney General, in consultation with the Sec9 retary of State, shall coordinate international drug en10 forcement efforts to decrease the movement of meth11 amphetamine and methamphetamine precursors into the

12 United States.

13 SEC. 102. PENALTIES FOR MANUFACTURE OF LISTED

14 CHEMICALS OUTSIDE THE UNITED STATES

15 WITH INTENT TO IMPORT THEM INTO THE

16 UNITED STATES.

17 (a) UNLAWFUL IMPORTATION.—Section 1009(a) of

18 the Controlled Substances Import and Export Act (21

19 U.S.C. 959(a)) is amended—

20 (1) in the matter before paragraph (1), by in21 serting ‘‘or listed chemical’’ after ‘‘schedule I or II’’;

22 and

23 (2) in paragraphs (1) and (2), by inserting ‘‘or

24 chemical’’ after ‘‘substance’’.
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1 (b) UNLAWFUL MANUFACTURE OR DISTRIBUTION.—

2 Paragraphs (1) and (2) of section 1009(b) of the Con3 trolled Substances Import and Export Act (21 U.S.C.

4 959(b)) are amended by inserting ‘‘or listed chemical’’

5 after ‘‘controlled substance’’.

6 (c) PENALTIES.—Section 1010(d) of the Controlled

7 Substances Import and Export Act (21 U.S.C. 960(d)) is

8 amended—

9 (1) in paragraph (5), by striking ‘‘or’’ at the

10 end;

11 (2) in paragraph (6), by striking the comma at

12 the end and inserting ‘‘; or’’; and

13 (3) by adding at the end the following:

14 ‘‘(7) manufactures, possesses with intent to dis15 tribute, or distributes a listed chemical in violation

16 of section 959 of this title.’’.

17 TITLE II—PROVISIONS TO CON18 TROL THE MANUFACTURE OF

19 METHAMPHETAMINE

20 SEC. 201. SEIZURE AND FORFEITURE OF REGULATED

21 CHEMICALS.

22 (a) PENALTIES FOR SIMPLE POSSESSION.—Section

23 404 of the Controlled Substances Act (21 U.S.C. 844) is

24 amended—

25 (1) in subsection (a)—
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1 (A) by adding after the first sentence the

2 following: ‘‘It shall be unlawful for any person

3 knowingly or intentionally to possess any list I

4 chemical obtained pursuant to or under author5 ity of a registration issued to that person under

6 section 303 of this title or section 1008 of title

7 III if that registration has been revoked or sus8 pended, if that registration has expired, or if

9 the registrant has ceased to do business in the

10 manner contemplated by his registration.’’; and

11 (B) by striking ‘‘drug or narcotic’’ and in12 serting ‘‘drug, narcotic, or chemical’’ each place

13 it appears; and

14 (2) in subsection (c), by striking ‘‘drug or nar15 cotic’’ and inserting ‘‘drug, narcotic, or chemical’’.

16 (b) FORFEITURES.—Section 511(a) of the Controlled

17 Substances Act (21 U.S.C. 881(a)) is amended—

18 (1) in paragraphs (2) and (6), by inserting ‘‘or

19 listed chemical’’ after ‘‘controlled substance’’ each

20 place it appears; and

21 (2) in paragraph (9), by—

22 (A) inserting ‘‘dispensed, acquired,’’ after

23 ‘‘distributed,’’ both places it appears; and

24 (B) striking ‘‘a felony provision of’’.
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1 (c) SEIZURE.—Section 607 of the Tariff Act of 1930

2 (19 U.S.C. 1607) is amended—

3 (1) in subsection (a)(3), by inserting ‘‘or listed

4 chemical’’ after ‘‘controlled substance’’; and

5 (2) by amending subsection (b) to read as fol6 lows:

7 ‘‘(b) As used in this section, the terms ‘controlled

8 substance’ and ‘listed chemical’ have the meaning given

9 such terms in section 102 of the Controlled Substances

10 Act (21 U.S.C. 802).’’.

11 SEC. 202. STUDY AND REPORT ON MEASURES TO PREVENT

12 SALES OF AGENTS USED IN METHAMPHET13 AMINE PRODUCTION.

14 (a) STUDY.—The Attorney General of the United

15 States shall conduct a study on possible measures to effec16 tively prevent the diversion of red phosphorous, iodine, hy17 drochloric gas, and other agents for use in the production

18 of methamphetamine. Nothing in this section shall pre19 clude the Attorney General from taking any action the At20 torney General already is authorized to take with regard

21 to the regulation of listed chemicals under current law.

22 (b) REPORT.—Not later than January 1, 1998, the

23 Attorney General shall submit a report to the Congress

24 of its findings pursuant to the study conducted under sub-
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1 section (a) on the need for and advisability of preventive

2 measures.

3 (c) CONSIDERATIONS.—In developing recommenda4 tions under subsection (b), the Attorney General shall con5 sider—

6 (1) the use of red phosphorous, iodine, hydro7 chloric gas, and other agents in the illegal manufac8 ture of methamphetamine;

9 (2) the use of red phosphorous, iodine, hydro10 chloric gas, and other agents for legitimate, legal

11 purposes, and the impact any regulations may have

12 on these legitimate purposes; and

13 (3) comments and recommendations from law

14 enforcement, manufacturers of such chemicals, and

15 the consumers of such chemicals for legitimate, legal

16 purposes.

17 SEC. 203. INCREASED PENALTIES FOR MANUFACTURE AND

18 POSSESSION OF EQUIPMENT USED TO MAKE

19 CONTROLLED SUBSTANCES.

20 (a) IN GENERAL.—Section 403(d) of the Controlled

21 Substances Act (21 U.S.C. 843(d)) is amended—

22 (1) by striking ‘‘(d) Any person’’ and inserting

23 ‘‘(d)(1) Except as provided in paragraph (2), any

24 person’’; and

25 (2) by adding at the end the following:
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1 ‘‘(2) Any person who, with the intent to manufacture

2 or facilitate to manufacture methamphetamine, violates

3 paragraph (6) or (7) of subsection (a), shall be sentenced

4 to a term of imprisonment of not more than 10 years,

5 a fine of not more than $30,000, or both; except that if

6 any person commits such a violation after one or more

7 prior convictions of that person—

8 ‘‘(A) for a violation of paragraph (6) or (7) of

9 subsection (a);

10 ‘‘(B) for a felony under any other provision of

11 this subchapter or subchapter II of this chapter; or

12 ‘‘(C) under any other law of the United States

13 or any State relating to controlled substances or list14 ed chemicals,

15 has become final, such person shall be sentenced to a term

16 of imprisonment of not more than 20 years, a fine of not

17 more than $60,000, or both.’’.

18 (b) SENTENCING COMMISSION.—The United States

19 Sentencing Commission shall amend the sentencing guide20 lines to ensure that the manufacture of methamphetamine

21 in violation of section 403(d)(2) of the Controlled Sub22 stances Act, as added by subsection (a), is treated as a

23 significant violation.
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1 SEC. 204. ADDITION OF IODINE AND HYDROCHLORIC GAS

2 TO LIST II.

3 (a) IN GENERAL.—Section 102(35) of the Controlled

4 Substances Act (21 U.S.C. 802(35)) is amended by adding

5 at the end the following:

6 ‘‘(I) Iodine.

7 ‘‘(J) Hydrochloric gas.’’.

8 (b) IMPORTATION REQUIREMENTS.—(1) Iodine shall

9 not be subject to the requirements for listed chemicals pro10 vided in section 1018 of the Controlled Substances Import

11 and Export Act (21 U.S.C. 971).

12 (2) EFFECT OF EXCEPTION.—The exception made by

13 paragraph (1) shall not limit the authority of the Attorney

14 General to impose the requirements for listed chemicals

15 provided in section 1018 of the Controlled Substances Im16 port and Export Act (21 U.S.C. 971).

17 SEC. 205. CIVIL PENALTIES FOR FIRMS THAT SUPPLY PRE18 CURSOR CHEMICALS.

19 (a) OFFENSES.—Section 402(a) of the Controlled

20 Substances Act (21 U.S.C. 842(a)) is amended—

21 (1) in paragraph (9), by striking ‘‘or’’ after the

22 semicolon;

23 (2) in paragraph (10), by striking the period

24 and inserting ‘‘; or’’; and

25 (3) by adding at the end the following:
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1 ‘‘(11) to distribute a laboratory supply to a per2 son who uses, or attempts to use, that laboratory

3 supply to manufacture a controlled substance or a

4 listed chemical, in violation of this title or title III,

5 with reckless disregard for the illegal uses to which

6 such a laboratory supply will be put.

7 As used in paragraph (11), the term ‘laboratory supply’

8 means a listed chemical or any chemical, substance, or

9 item, on a special surveillance list published by the Attor10 ney General, which contains chemicals, products, mate11 rials, or equipment used in the manufacture of controlled

12 substances and listed chemicals. For purposes of para13 graph (11), there is a rebuttable presumption of reckless

14 disregard at trial if a firm distributes or continues to dis15 tribute a laboratory supply to a customer where the Attor16 ney General has previously notified, at least two weeks be17 fore the transaction(s), the firm that a laboratory supply

18 sold by the firm, or any other person or firm, has been

19 used by that customer, or distributed further by that cus20 tomer, for the unlawful production of controlled sub21 stances or listed chemicals.’’

22 (b) CIVIL PENALTY.—Section 402(c)(2) of the Con23 trolled Substances Act (21 U.S.C. 842(c)(2)) is amended

24 by adding at the end the following:
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1 ‘‘(C) In addition to the penalties set forth else2 where in this title or title III, any business that vio3 lates paragraph (11) of subsection (a) shall, with re4 spect to the first such violation, be subject to a civil

5 penalty of not more than $250,000, but shall not be

6 subject to criminal penalties under this section, and

7 shall, for any succeeding violation, be subject to a

8 civil fine of not more than $250,000 or double the

9 last previously imposed penalty, whichever is great10 er.’’.

11 SEC. 206. INJUNCTIVE RELIEF.

12 (a) TEN-YEAR INJUNCTION MAJOR OFFENSES.—

13 Section 401(f) of the Controlled Substances Act (21

14 U.S.C. 841(f)) is amended by—

15 (1) inserting ‘‘manufacture, exportation,’’ after

16 ‘‘distribution,’’; and

17 (2) striking ‘‘regulated’’.

18 (b) TEN-YEAR INJUNCTION OTHER OFFENSES.—

19 Section 403 of the Controlled Substances Act (21 U.S.C.

20 843) is amended—

21 (1) in subsection (e), by—

22 (A) inserting ‘‘manufacture, exportation,’’

23 after ‘‘distribution,’’; and

24 (B) striking ‘‘regulated’’; and

25 (2) by adding at the end the following:
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1 ‘‘(f) INJUNCTIONS.—(1) In addition to any penalty

2 provided in this section, the Attorney General is author3 ized to commence a civil action for appropriate declaratory

4 or injunctive relief relating to violations of this section or

5 section 402.

6 ‘‘(2) Any action under this subsection may be

7 brought in the district court of the United States for the

8 district in which the defendant is located or resides or is

9 doing business.

10 ‘‘(3) Any order or judgment issued by the court pur11 suant to this subsection shall be tailored to restrain viola12 tions of this section or section 402.

13 ‘‘(4) The court shall proceed as soon as practicable

14 to the hearing and determination of such an action. An

15 action under this subsection is governed by the Federal

16 Rules of Civil Procedure except that, if an indictment has

17 been returned against the respondent, discovery is gov18 erned by the Federal Rules of Criminal Procedure.’’.

19 SEC. 207. RESTITUTION FOR CLEANUP OF CLANDESTINE

20 LABORATORY SITES.

21 Section 413 of the Controlled Substances Act (21

22 U.S.C. 853) is amended by adding at the end the follow23 ing:
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1 ‘‘(q) The court, when sentencing a defendant con2 victed of an offense under this title or title III involving

3 the manufacture of methamphetamine, may—

4 ‘‘(1) order restitution as provided in sections

5 3612 and 3664 of title 18, United States Code;

6 ‘‘(2) order the defendant to reimburse the Unit7 ed States for the costs incurred by the United States

8 for the cleanup associated with the manufacture of

9 methamphetamine by the defendant; and

10 ‘‘(3) order restitution to any person injured as

11 a result of the offense as provided in section 3663

12 of title 18, United States Code.’’.

13 SEC. 208. RECORD RETENTION.

14 Section 310(a)(1) of the Controlled Substances Act

15 (21 U.S.C. 830(a)(1)) is amended by striking the dash

16 after ‘‘transaction’’ and subparagraphs (A) and (B) and

17 inserting ‘‘for two years after the date of the trans18 action.’’.

19 SEC. 209. TECHNICAL AMENDMENTS.

20 Section 102 of the Controlled Substances Act (21

21 U.S.C. 802) is amended—

22 (1) in paragraph (34), by amending subpara23 graphs (P), (S), and (U) to read as follows:

24 ‘‘(P) Iso safrole.

25 ‘‘(S) N-Methylephedrine.
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1 ‘‘(U) Hydriodic acid.’’; and

2 (2) in paragraph (35), by amending subpara3 graph (G) to read as follows:

4 ‘‘(G) 2-Butanone (or Methyl Ethyl Ke5 tone).’’.

6 TITLE III—INCREASED PEN7 ALTIES FOR TRAFFICKING

8 AND MANUFACTURE OF

9 METHAMPHETAMINE AND

10 PRECURSORS

11 SEC. 301. TRAFFICKING IN METHAMPHETAMINE PENALTY

12 INCREASES.

13 (a) CONTROLLED SUBSTANCES ACT.—

14 (1) LARGE AMOUNTS.—Section

15 401(b)(1)(A)(viii) of the Controlled Substances Act

16 (21 U.S.C. 841(b)(1)(A)(viii)) is amended by—

17 (A) striking ‘‘100 grams or more of meth18 amphetamine,’’ and inserting ‘‘50 grams or

19 more of methamphetamine,’’; and

20 (B) striking ‘‘1 kilogram or more of a mix21 ture or substance containing a detectable

22 amount of methamphetamine’’ and inserting

23 ‘‘500 grams or more of a mixture or substance

24 containing a detectable amount of methamphet25 amine’’.
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1 (2) SMALLER AMOUNTS.—Section

2 401(b)(1)(B)(viii) of the Controlled Substances Act

3 (21 U.S.C. 841(b)(1)(B)(viii)) is amended by—

4 (A) striking ‘‘10 grams or more of meth5 amphetamine,’’ and inserting ‘‘5 grams or more

6 of methamphetamine,’’; and

7 (B) striking ‘‘100 grams or more of a mix8 ture or substance containing a detectable

9 amount of methamphetamine’’ and inserting

10 ‘‘50 grams or more of a mixture or substance

11 containing a detectable amount of methamphet12 amine’’.

13 (b) IMPORT AND EXPORT ACT.—

14 (1) LARGE AMOUNTS.—Section 1010(b)(1)(H)

15 of the Controlled Substances Import and Export Act

16 (21 U.S.C. 960(b)(1)(H)) is amended by—

17 (A) striking ‘‘100 grams or more of meth18 amphetamine,’’ and inserting ‘‘50 grams or

19 more of methamphetamine,’’; and

20 (B) striking ‘‘1 kilogram or more of a mix21 ture or substance containing a detectable

22 amount of methamphetamine’’ and inserting

23 ‘‘500 grams or more of a mixture or substance

24 containing a detectable amount of methamphet25 amine’’.
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1 (2) SMALLER AMOUNTS.—Section

2 1010(b)(2)(H) of the Controlled Substances Import

3 and Export Act (21 U.S.C. 960(b)(2)(H)) is amend4 ed by—

5 (A) striking ‘‘10 grams or more of meth6 amphetamine,’’ and inserting ‘‘5 grams or more

7 of methamphetamine,’’; and

8 (B) striking ‘‘100 grams or more of a mix9 ture or substance containing a detectable

10 amount of methamphetamine’’ and inserting

11 ‘‘50 grams or more of a mixture or substance

12 containing a detectable amount of methamphet13 amine’’.

14 SEC. 302. PENALTY INCREASES FOR TRAFFICKING IN LIST15 ED CHEMICALS.

16 (a) CONTROLLED SUBSTANCES ACT.—Section

17 401(d) of the Controlled Substances Act (21 U.S.C.

18 841(d)) is amended by striking the period and inserting

19 the following: ‘‘or, with respect to a violation of paragraph

20 (1) or (2) of this subsection involving a list I chemical,

21 if the government proves the quantity of controlled sub22 stance that could reasonably have been manufactured in

23 a clandestine setting using the quantity of list I chemicals

24 possessed or distributed, the penalty corresponding to the
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1 quantity of controlled substance that could have been pro2 duced under subsection (b).’’.

3 (b) CONTROLLED SUBSTANCE IMPORT AND EXPORT

4 ACT.—Section 1010(d) of the Controlled Substance Im5 port and Export Act (21 U.S.C. 960(d)) is amended by

6 striking the period and inserting the following: ‘‘, or, with

7 respect to an importation violation of paragraph (1) or

8 (3) of this subsection involving a list I chemical, if the

9 government proves the quantity of controlled substance

10 that could reasonably have been manufactured in a clan11 destine setting using the quantity of list I chemicals im12 ported, the penalty corresponding to the quantity of con13 trolled substance that could have been produced under

14 title II.’’.

15 (c) DETERMINATION OF QUANTITY.—

16 (1) IN GENERAL.—For the purposes of this sec17 tion and the amendments made by this section, the

18 quantity of controlled substance that could reason19 ably have been provided shall be determined by

20 using a table of manufacturing conversion ratios for

21 list I chemicals.

22 (2) TABLE.—The table shall be—

23 (A) established by the United States Sen24 tencing Commission based on scientific, law en-
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1 forcement, and other data the Sentencing Com2 mission deems appropriate; and

3 (B) dispositive of this issue.

4 SEC. 303. ENHANCED PENALTY FOR DANGEROUS HAN5 DLING OF CONTROLLED SUBSTANCES:

6 AMENDMENT OF SENTENCING GUIDELINES.

7 (a) IN GENERAL.—Pursuant to its authority under

8 section 994 of title 28, United States Code, the United

9 States Sentencing Commission shall determine whether

10 the Sentencing Guidelines adequately punish the offenses

11 described in subsection (b) and, if not, promulgate guide12 lines or amend existing guidelines to provide an appro13 priate enhancement of the punishment for a defendant

14 convicted of such an offense.

15 (b) OFFENSE.—The offense referred to in subsection

16 (a) is a violation of section 401(d), 401(g)(1), 403(a)(6),

17 or 403(a)(7) of The Controlled Substances Act (21 U.S.C.

18 841(d), 841(g)(1), 843(a)(6), and 843(a)(7)), in cases in

19 which in the commission of the offense the defendant vio20 lated—

21 (1) subsection (d) or (e) of section 3008 of the

22 Solid Waste Disposal Act (relating to handling haz23 ardous waste in a manner inconsistent with Federal

24 or applicable State law);
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1 (2) section 103(b) of the Comprehensive Envi2 ronmental Response, Compensation and Liability

3 Act (relating to failure to notify as to the release of

4 a reportable quantity of a hazardous substance into

5 the environment);

6 (3) section 301(a), 307(d), 309(c)(2),

7 309(c)(3), 311(b)(3), or 311(b)(5) of the Federal

8 Water Pollution Control Act (relating to the unlaw9 ful discharge of pollutants or hazardous substances,

10 the operation of a source in violation of a

11 pretreatment standard, and the failure to notify as

12 to the release of a reportable quantity of a hazard13 ous substance into the water); or

14 (4) section 5124 of title 49, United States Code

15 (relating to violations of laws and regulations en16 forced by the Department of Transportation with re17 spect to the transportation of hazardous material).

18 TITLE IV—LEGAL MANUFAC19 TURE, DISTRIBUTION, AND

20 SALE OF PRECURSOR CHEMI21 CALS

22 SEC. 401. DIVERSION OF CERTAIN PRECURSOR CHEMI23 CALS.

24 (a) IN GENERAL.—Section 102(39) of the Controlled

25 Substances Act (21 U.S.C. 802(39)) is amended—
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1 (1) in subparagraph (A)(iv)(I)(aa), by striking

2 ‘‘as’’ through the semicolon and inserting

3 ‘‘, pseudoephedrine or its salts, optical isomers, or

4 salts of optical isomers, or phenylpropanolamine or

5 its salts, optical isomers, or salts of optical isomers

6 unless otherwise provided by regulation of the Attor7 ney General issued pursuant to section 204(e) of

8 this title;’’; and

9 (2) in subparagraph (A)(iv)(II), by inserting

10 ‘‘, pseudoephedrine, phenylpropanolamine,’’ after

11 ‘‘ephedrine’’.

12 (b) LEGITIMATE RETAILERS.—Section 102 of the

13 Controlled Substances Act (21 U.S.C. 802) is amended—

14 (1) in paragraph (39)(A)(iv)(I)(aa), by adding

15 before the semicolon the following: ‘‘, except that

16 any sale of ordinary over-the-counter

17 pseudoephedrine or phenylpropanolamine products

18 by retail distributors shall not be a regulated trans19 action (except as provided in section 401(d) of the

20 Comprehensive Methamphetamine Control Act of

21 1996)’’;

22 (2) in paragraph (39)(A)(iv)(II), by adding be23 fore the semicolon the following: ‘‘, except that any

24 sale of products containing pseudoephedrine or

25 phenylpropanolamine, other than ordinary over-the-
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1 counter pseudoephedrine or phenylpropanolamine

2 products, by retail distributors shall not be a regu3 lated transaction if the distributor’s sales are limited

4 to less than the threshold quantity of 24 grams of

5 pseudoephedrine or 24 grams of phenylpropanola6 mine in each single transaction’’;

7 (3) by redesignating paragraph (43) relating to

8 felony drug abuse as paragraph (44); and

9 (4) by adding at the end the following:

10 ‘‘(45) The term ‘ordinary over-the-counter

11 pseudoephedrine or phenylpropanolamine product’

12 means any product containing pseudoephedrine or

13 phenylpropanolamine that is—

14 ‘‘(A) regulated pursuant to this title; and

15 ‘‘(B)(i) except for liquids, sold in package

16 sizes of not more than 3.0 grams of

17 pseudoephedrine base or 3.0 grams of phenyl18 propanolamine base, and that is packaged in

19 blister packs, each blister containing not more

20 than two dosage units, or where the use of blis21 ter packs is technically infeasible, that is

22 packaged in unit dose packets or pouches; and

23 ‘‘(ii) for liquids, sold in package sizes of

24 not more than 3.0 grams of pseudoephedrine

25 base or 3.0 grams of phenylpropanolamine base.
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1 ‘‘(46)(A) The term ‘retail distributor’ means—

2 ‘‘(i) with respect to an entity that is a gro3 cery store, general merchandise store, or drug

4 store, a distributor whose activities relating to

5 pseudoephedrine or phenylpropanolamine prod6 ucts are limited almost exclusively to sales, both

7 in number of sales and volume of sales, directly

8 to walk-in customers; and

9 ‘‘(ii) with respect to any other entity, a

10 distributor whose activities relating to ordinary

11 over-the-counter pseudoephedrine or phenyl12 propanolamine products are limited primarily to

13 sales directly to walk-in customers for personal

14 use.

15 ‘‘(B) For purposes of this paragraph, sale for

16 personal use means the sale of below-threshold quan17 tities in a single transaction to an individual for le18 gitimate medical use.

19 ‘‘(C) For purposes of this paragraph, entities

20 are defined by reference to the Standard Industrial

21 Classification (SIC) code, as follows:

22 ‘‘(i) A grocery store is an entity within SIC

23 code 5411.
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1 ‘‘(ii) A general merchandise store is an en2 tity within SIC codes 5300 through 5399 and

3 5499.

4 ‘‘(iii) A drug store is an entity within SIC

5 code 5912.’’.

6 (c) REINSTATEMENT OF LEGAL DRUG EXEMP7 TION.—Section 204 of the Controlled Substances Act (21

8 U.S.C. 814) is amended by adding at the end the following

9 new subsection:

10 ‘‘(e) REINSTATEMENT OF EXEMPTION WITH RE11 SPECT TO EPHEDRINE, PSEUDOEPHEDRINE, AND PHEN12 YLPROPANOLAMINE DRUG PRODUCTS.—The Attorney

13 General shall by regulation reinstate the exemption with

14 respect to a particular ephedrine, pseudoephedrine, or

15 phenylpropanolamine drug product if the Attorney Gen16 eral determines that the drug product is manufactured

17 and distributed in a manner that prevents diversion. In

18 making this determination the Attorney General shall con19 sider the factors listed in subsection (d)(2). Any regulation

20 issued pursuant to this subsection may be amended or re21 voked based on the factors listed in subsection (d)(4).’’.

22 (d) REGULATION OF RETAIL SALES.—

23 (1) PSEUDOEPHEDRINE.—

24 (A) LIMIT.—
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1 (i) IN GENERAL.—Not sooner than

2 the effective date of this section and sub3 ject to the requirements of clause (ii), the

4 Attorney General may establish by regula5 tion a single-transaction limit of 24 grams

6 of pseudoephedrine base for retail distribu7 tors. Notwithstanding any other provision

8 of law, the single-transaction threshold

9 quantity for pseudoephedrine-containing

10 compounds may not be lowered beyond

11 that established in this paragraph.

12 (ii) CONDITIONS.—In order to estab13 lish a single-transaction limit of 24 grams

14 of pseudoephedrine base, the Attorney

15 General shall establish, following notice,

16 comment, and an informal hearing that

17 since the effective date of this section there

18 are a significant number of instances

19 where ordinary over-the-counter

20 pseudoephedrine products as established in

21 paragraph (45) of section 102 of the Con22 trolled Substances Act (21 U.S.C. 802

23 (45)), as added by this Act, sold by retail

24 distributors as established in paragraph

25 (46) in section 102 of the Controlled Sub-
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1 stances Act (21 U.S.C. 802(46)), are being

2 used as a significant source of precursor

3 chemicals for illegal manufacture of a con4 trolled substance in bulk.

5 (B) VIOLATION.—Any individual or busi6 ness that violates the thresholds established in

7 this paragraph shall, with respect to the first

8 such violation, receive a warning letter from the

9 Attorney General and, if a business, the busi10 ness shall be required to conduct mandatory

11 education of the sales employees of the firm

12 with regard to the legal sales of

13 pseudoephedrine. For a second violation occur14 ring within 2 years of the first violation, the

15 business or individual shall be subject to a civil

16 penalty of not more than $5,000. For any sub17 sequent violation occurring within 2 years of

18 the previous violation, the business or individual

19 shall be subject to a civil penalty not to exceed

20 the amount of the previous civil penalty plus

21 $5,000.

22 (2) PHENYLPROPANOLAMINE.—

23 (A) LIMIT.—

24 (i) IN GENERAL.—Not sooner than

25 the effective date of this section and sub-
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1 ject to the requirements of clause (ii), the

2 Attorney General may establish by regula3 tion a single-transaction limit of 24 grams

4 of phenylpropanolamine base for retail dis5 tributors. Notwithstanding any other provi6 sion of law, the single-transaction thresh7 old quantity for phenylpropanolamine-con8 taining compounds may not be lowered be9 yond that established in this paragraph.

10 (ii) CONDITIONS.—In order to estab11 lish a single-transaction limit of 24 grams

12 of phenylpropanolamine base, the Attorney

13 General shall establish, following notice,

14 comment, and an informal hearing, that

15 since the effective date of this section there

16 are a significant number of instances

17 where ordinary over-the-counter phenyl18 propanolamine products as established in

19 paragraph (45) of section 102 of the Con20 trolled Substances Act (21 U.S.C.

21 802(45)), as added by this Act, sold by re22 tail distributors as established in para23 graph (46) in section 102 of the Controlled

24 Substances Act (21 U.S.C. 802(46)), are

25 being used as a significant source of pre-
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1 cursor chemicals for illegal manufacture of

2 a controlled substance in bulk.

3 (B) VIOLATION.—Any individual or busi4 ness that violates the thresholds established in

5 this paragraph shall, with respect to the first

6 such violation, receive a warning letter from the

7 Attorney General and, if a business, the busi8 ness shall be required to conduct mandatory

9 education of the sales employees of the firm

10 with regard to the legal sales of

11 pseudoephedrine. For a second violation occur12 ring within 2 years of the first violation, the

13 business or individual shall be subject to a civil

14 penalty of not more than $5,000. For any sub15 sequent violation occurring within 2 years of

16 the previous violation, the business or individual

17 shall be subject to a civil penalty not to exceed

18 the amount of the previous civil penalty plus

19 $5,000.

20 (3) DEFINITION OF BUSINESS.—For purposes

21 of this subsection, the term ‘‘business’’ means the

22 entity that makes the direct sale and does not in23 clude the parent company of a business not involved

24 in a direct sale regulated by this subsection.
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1 (4) JUDICIAL REVIEW.—Any regulation promul2 gated by the Attorney General under this section

3 shall be subject to judicial review pursuant to section

4 507 of the Controlled Substances Act (21 U.S.C.

5 877).

6 (e) EFFECT ON THRESHOLDS.—Nothing in the

7 amendments made by subsection (b) or the provisions of

8 subsection (d) shall affect the authority of the Attorney

9 General to modify thresholds (including cumulative

10 thresholds) for retail distributors for products other than

11 ordinary over-the-counter pseudoephedrine or phenyl12 propanolamine products (as defined in section 102(45) of

13 the Controlled Substances Act, as added by this section)

14 or for non-retail distributors, importers, or exporters.

15 (f) EFFECTIVE DATE OF THIS SECTION.—Notwith16 standing any other provision of this Act, this section shall

17 not apply to the sale of any over-the-counter

18 pseudoephedrine or phenylpropanolamine product initially

19 introduced into interstate commerce prior to 9 months

20 after the date of enactment of this Act.

21 SEC. 402. MAIL ORDER RESTRICTIONS.

22 Section 310(b) of the Controlled Substances Act (21

23 U.S.C. 830(b)) is amended by adding at the end the fol24 lowing:
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1 ‘‘(3) MAIL ORDER REPORTING.—(A) Each regu2 lated person who engages in a transaction with a

3 nonregulated person which—

4 ‘‘(i) involves ephedrine, pseudoephedrine,

5 or phenylpropanolamine (including drug prod6 ucts containing these chemicals); and

7 ‘‘(ii) uses or attempts to use the Postal

8 Service or any private or commercial carrier;

9 shall, on a monthly basis, submit a report of each

10 such transaction conducted during the previous

11 month to the Attorney General in such form, con12 taining such data, and at such times as the Attorney

13 General shall establish by regulation.

14 ‘‘(B) The data required for such reports shall

15 include—

16 ‘‘(i) the name of the purchaser;

17 ‘‘(ii) the quantity and form of the ephed18 rine, pseudoephedrine, or phenylpropanolamine

19 purchased; and

20 ‘‘(iii) the address to which such ephedrine,

21 pseudoephedrine, or phenylpropanolamine was

22 sent.’’.
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1 TITLE V—EDUCATION AND

2 RESEARCH

3 SEC. 501. INTERAGENCY METHAMPHETAMINE TASK FORCE.

4 (a) ESTABLISHMENT.—There is established a ‘‘Meth5 amphetamine Interagency Task Force’’ (referred to as the

6 ‘‘interagency task force’’) which shall consist of the follow7 ing members:

8 (1) The Attorney General, or a designee, who

9 shall serve as chair.

10 (2) 2 representatives selected by the Attorney

11 General.

12 (3) The Secretary of Education or a designee.

13 (4) The Secretary of Health and Human Serv14 ices or a designee.

15 (5) 2 representatives of State and local law en16 forcement and regulatory agencies, to be selected by

17 the Attorney General.

18 (6) 2 representatives selected by the Secretary

19 of Health and Human Services.

20 (7) 5 nongovernmental experts in drug abuse

21 prevention and treatment to be selected by the At22 torney General.

23 (b) RESPONSIBILITIES.—The interagency task force

24 shall be responsible for designing, implementing, and eval25 uating the education and prevention and treatment prac-
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1 tices and strategies of the Federal Government with re2 spect to methamphetamine and other synthetic stimulants.

3 (c) MEETINGS.—The interagency task force shall

4 meet at least once every 6 months.

5 (d) FUNDING.—The administrative expenses of the

6 interagency task force shall be paid out of existing Depart7 ment of Justice appropriations.

8 (e) FACA.—The Federal Advisory Committee Act (5

9 U.S.C. App. 2) shall apply to the interagency task force.

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

11 terminate 4 years after the date of enactment of this Act.

12 SEC. 502. PUBLIC HEALTH MONITORING.

13 The Secretary of Health and Human Services shall

14 develop a public health monitoring program to monitor

15 methamphetamine abuse in the United States. The pro16 gram shall include the collection and dissemination of data

17 related to methamphetamine abuse which can be used by

18 public health officials in policy development.

19 SEC. 503. PUBLIC-PRIVATE EDUCATION PROGRAM.

20 (a) ADVISORY PANEL.—The Attorney General shall

21 establish an advisory panel consisting of an appropriate

22 number of representatives from Federal, State, and local

23 law enforcement and regulatory agencies with experience

24 in investigating and prosecuting illegal transactions of

25 precursor chemicals. The Attorney General shall convene
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1 the panel as often as necessary to develop and coordinate

2 educational programs for wholesale and retail distributors

3 of precursor chemicals and supplies.

4 (b) CONTINUATION OF CURRENT EFFORTS.—The

5 Attorney General shall continue to—

6 (1) maintain an active program of seminars and

7 training to educate wholesale and retail distributors

8 of precursor chemicals and supplies regarding the

9 identification of suspicious transactions and their re10 sponsibility to report such transactions; and

11 (2) provide assistance to State and local law en12 forcement and regulatory agencies to facilitate the

13 establishment and maintenance of educational pro14 grams for distributors of precursor chemicals and

15 supplies.

16 SEC. 504. SUSPICIOUS ORDERS TASK FORCE.

17 (a) IN GENERAL.—The Attorney General shall estab18 lish a ‘‘Suspicious Orders Task Force’’ (the ‘‘Task

19 Force’’) which shall consist of—

20 (1) appropriate personnel from the Drug En21 forcement Administration (the ‘‘DEA’’) and other

22 Federal, State, and local law enforcement and regu23 latory agencies with the experience in investigating

24 and prosecuting illegal transactions of listed chemi25 cals and supplies; and
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1 (2) representatives from the chemical and phar2 maceutical industry.

3 (b) RESPONSIBILITIES.—The Task Force shall be re4 sponsible for developing proposals to define suspicious or5 ders of listed chemicals, and particularly to develop quan6 tifiable parameters which can be used by registrants in

7 determining if an order is a suspicious order which must

8 be reported to DEA. The quantifiable parameters to be

9 addressed will include frequency of orders, deviations from

10 prior orders, and size of orders. The Task Force shall also

11 recommend provisions as to what types of payment prac12 tices or unusual business practices shall constitute prima

13 facie suspicious orders. In evaluating the proposals, the

14 Task Force shall consider effectiveness, cost and feasibil15 ity for industry and government, an other relevant factors.

16 (c) MEETINGS.—The Task Force shall meet at least

17 two times per year and at such other times as may be

18 determined necessary by the Task Force.

19 (d) REPORT.—The Task Force shall present a report

20 to the Attorney General on its proposals with regard to

21 suspicious orders and the electronic reporting of sus22 picious orders within one year of the date of enactment

23 of this Act. Copies of the report shall be forwarded to the

24 Committees of the Senate and House of Representatives
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1 having jurisdiction over the regulation of listed chemical

2 and controlled substances.

3 (e) FUNDING.—The administrative expenses of the

4 Task Force shall be paid out of existing Department of

5 Justice funds.

6 (f) FACA.—The Federal Advisory Committee Act (5

7 U.S.C. App. 2) shall apply to the Task Force.

8 (g) TERMINATION.—The Task Force shall terminate

9 upon presentation of its report to the Attorney General,

10 or two years after the date of enactment of this Act,

11 whichever is sooner.