```

[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1965 Engrossed in Senate (ES)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
104th CONGRESS
  2d Session
                                S. 1965

_______________________________________________________________________

                                 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.

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:
            ``(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 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).

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.
    ``(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.

   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 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 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 
        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--
            (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.''.
    (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 
                        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 (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 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 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.
    (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, an 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.
    (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.

            Passed the Senate September 17, 1996.

            Attest:

                                                             Secretary.
104th CONGRESS

  2d Session

                                S. 1965

_______________________________________________________________________

                                 AN ACT

    To prevent the illegal manufacturing and use of methamphetamine.
```