104TH CONGRESS

2D SESSION S. 1965

AN ACT

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.

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.

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 to facilitate the manufacture of methamphetamine, vio3 lates paragraph (6) or (7) of subsection (a), shall be sen4 tenced to a term of imprisonment of not more than 10

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

6 that if any person commits such a violation after one or

7 more 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 AND EXPORTATION REQUIRE9 MENTS.—(1) Iodine shall not be subject to the require10 ments for listed chemicals provided in section 1018 of the

11 Controlled Substances Import and Export Act (21 U.S.C.

12 971).

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

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

15 General to impose the requirements for listed chemicals

16 provided in section 1018 of the Controlled Substances Im17 port and Export Act (21 U.S.C. 971).

18 SEC. 205. CIVIL PENALTIES FOR FIRMS THAT SUPPLY PRE19 CURSOR CHEMICALS.

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

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

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

23 semicolon;

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

25 and inserting ‘‘; or’’; and

26 (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 the Attorney General notifies a firm

15 in writing that a laboratory supply sold by the firm, or

16 any other person or firm, has been used by a customer

17 of the notified firm, or distributed further by that cus18 tomer, for the unlawful production of controlled sub19 stances or listed chemicals a firm distributes and 2 weeks

20 or more after the notification the notified firm distributes

21 a laboratory supply to the customer.’’.

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) Isosafrole.

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 SEC. 210. WITHDRAWAL OF REGULATIONS.

7 The final rule concerning removal of exemption for

8 certain pseudoephedrine products marketed under the

9 Federal Food, Drug, and Cosmetic Act published in the

10 Federal Register of August 7, 1996 (61 FR 40981–

11 40993) is null and void and of no force or effect.

12 TITLE III—INCREASED PEN13 ALTIES FOR TRAFFICKING

14 AND MANUFACTURE OF

15 METHAMPHETAMINE AND

16 PRECURSORS

17 SEC. 301. PENALTY INCREASES FOR TRAFFICKING IN

18 METHAMPHETAMINE.

19 (a) DIRECTIVE TO THE UNITED STATES SENTENC20 ING COMMISSION.—Pursuant to its authority under sec21 tion 994 of title 28, United States Code, the United States

22 Sentencing Commission shall review and amend its guide23 lines and its policy statements to provide for increased

24 penalties for unlawful manufacturing, importing, export25 ing, and trafficking of methamphetamine, and other simi-
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1 lar offenses, including unlawful possession with intent to

2 commit any of those offenses, and attempt and conspiracy

3 to commit any of those offenses. The Commission shall

4 submit to Congress explanations therefor and any addi5 tional policy recommendations for combating methamphet6 amine offenses.

7 (b) IN GENERAL.—In carrying out this section, the

8 Commission shall ensure that the sentencing guidelines

9 and policy statements for offenders convicted of offenses

10 described in subsection (a) and any recommendations sub11 mitted under such subsection reflect the heinous nature

12 of such offenses, the need for aggressive law enforcement

13 action to fight such offenses, and the extreme dangers as14 sociated with unlawful activity involving methamphet15 amine, including—

16 (1) the rapidly growing incidence of meth17 amphetamine abuse and the threat to public safety

18 such abuse poses;

19 (2) the high risk of methamphetamine addic20 tion;

21 (3) the increased risk of violence associated

22 with methamphetamine trafficking and abuse; and

23 (4) the recent increase in the illegal importation

24 of methamphetamine and precursor chemicals.
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1 SEC. 302. ENHANCED PENALTIES FOR OFFENSES INVOLV2 ING CERTAIN LISTED CHEMICALS.

3 (a) CONTROLLED SUBSTANCES ACT.—Section

4 401(d) of the Controlled Substances Act (21 U.S.C.

5 841(d)) is amended by striking ‘‘not more than 10 years,’’

6 and inserting ‘‘not more than 20 years in the case of a

7 violation of paragraph (1) or (2) involving a list I chemical

8 or not more than 10 years in the case of a violation of

9 this subsection other than a violation of paragraph (1) or

10 (2) involving a list I chemical,’’.

11 (b) CONTROLLED SUBSTANCE IMPORT AND EXPORT

12 ACT.—Section 1010(d) of the Controlled Substance Im13 port and Export Act (21 U.S.C. 960(d)) is amended by

14 striking ‘‘not more than 10 years,’’ and inserting ‘‘not

15 more than 20 years in the case of a violation of paragraph

16 (1) or (3) involving a list I chemical or not more than

17 10 years in the case of a violation of this subsection other

18 than a violation of paragraph (1) or (3) involving a list

19 I chemical,’’.

20 (c) SENTENCING GUIDELINES.—

21 (1) IN GENERAL.—The United States Sentenc22 ing Commission shall, in accordance with the proce23 dures set forth in section 21(a) of the Sentencing

24 Act of 1987, as though the authority of that section

25 had not expired, amend the sentencing guidelines to
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1 increase by at least two levels the offense level for

2 offenses involving list I chemicals under—

3 (A) section 401(d) (1) and (2) of the Con4 trolled Substances Act (21 U.S.C 841(d) (1)

5 and (2)); and

6 (B) section 1010(d) (1) and (3) of the

7 Controlled Substance Import and Export Act

8 (21 U.S.C. 960(d) (1) and (3)).

9 (2) REQUIREMENT.—In carrying out this sub10 section, the Commission shall ensure that the of11 fense levels for offenses referred to in paragraph (1)

12 are calculated proportionally on the basis of the

13 quantity of controlled substance that reasonably

14 could have been manufactured in a clandestine set15 ting using the quantity of the list I chemical pos16 sessed, distributed, imported, or exported.

17 SEC. 303. ENHANCED PENALTY FOR DANGEROUS HAN18 DLING OF CONTROLLED SUBSTANCES:

19 AMENDMENT OF SENTENCING GUIDELINES.

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

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

22 States Sentencing Commission shall determine whether

23 the Sentencing Guidelines adequately punish the offenses

24 described in subsection (b) and, if not, promulgate guide25 lines or amend existing guidelines to provide an appro-
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1 priate enhancement of the punishment for a defendant

2 convicted of such an offense.

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

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

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

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

7 which in the commission of the offense the defendant vio8 lated—

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

10 Solid Waste Disposal Act (relating to handling haz11 ardous waste in a manner inconsistent with Federal

12 or applicable State law);

13 (2) section 103(b) of the Comprehensive Envi14 ronmental Response, Compensation and Liability

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

16 a reportable quantity of a hazardous substance into

17 the environment);

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

19 309(c)(3), 311(b)(3), or 311(b)(5) of the Federal

20 Water Pollution Control Act (relating to the unlaw21 ful discharge of pollutants or hazardous substances,

22 the operation of a source in violation of a

23 pretreatment standard, and the failure to notify as

24 to the release of a reportable quantity of a hazard25 ous substance into the water); or
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1 (4) section 5124 of title 49, United States Code

2 (relating to violations of laws and regulations en3 forced by the Department of Transportation with re4 spect to the transportation of hazardous material).

5 TITLE IV—LEGAL MANUFAC6 TURE, DISTRIBUTION, AND

7 SALE OF PRECURSOR CHEMI8 CALS

9 SEC. 401. DIVERSION OF CERTAIN PRECURSOR CHEMI10 CALS.

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

12 Substances Act (21 U.S.C. 802(39)) is amended—

13 (1) in subparagraph (A)(iv)(I)(aa), by striking

14 ‘‘as’’ through the semicolon and inserting

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

16 salts of optical isomers, or phenylpropanolamine or

17 its salts, optical isomers, or salts of optical isomers

18 unless otherwise provided by regulation of the Attor19 ney General issued pursuant to section 204(e) of

20 this title;’’; and

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

22 ‘‘, pseudoephedrine, phenylpropanolamine,’’ after

23 ‘‘ephedrine’’.

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

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

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

3 any sale of ordinary over-the-counter

4 pseudoephedrine or phenylpropanolamine products

5 by retail distributors shall not be a regulated trans6 action (except as provided in section 401(d) of the

7 Comprehensive Methamphetamine Control Act of

8 1996)’’;

9 (2) in paragraph (39)(A)(iv)(II), by adding be10 fore the semicolon the following: ‘‘, except that the

11 threshold for any sale of products containing

12 pseudoephedrine or phenylpropanolamine products

13 by retail distributors or by distributors required to

14 submit reports by section 310(b)(3) of this title shall

15 be 24 grams of pseudoephedrine or 24 grams of

16 phenylpropanolamine in a single transaction’’;

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

18 felony drug offense as paragraph (44); and

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

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

21 pseudoephedrine or phenylpropanolamine product’

22 means any product containing pseudoephedrine or

23 phenylpropanolamine that is—

24 ‘‘(A) regulated pursuant to this title; and
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1 ‘‘(B)(i) except for liquids, sold in package

2 sizes of not more than 3.0 grams of

3 pseudoephedrine base or 3.0 grams of phenyl4 propanolamine base, and that is packaged in

5 blister packs, each blister containing not more

6 than two dosage units, or where the use of blis7 ter packs is technically infeasible, that is

8 packaged in unit dose packets or pouches; and

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

10 not more than 3.0 grams of pseudoephedrine

11 base or 3.0 grams of phenylpropanolamine base.

12 ‘‘(46)(A) The term ‘retail distributor’ means a

13 grocery store, general merchandise store, drug store,

14 or other entity or person whose activities as a dis15 tributor relating to pseudoephedrine or phenyl16 propanolamine products are limited almost exclu17 sively to sales for personal use, both in number of

18 sales and volume of sales, either directly to walk-in

19 customers or in face-to-face transactions by direct

20 sales.

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

22 personal use means the sale of below-threshold quan23 tities in a single transaction to an individual for le24 gitimate medical use.
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1 ‘‘(C) For purposes of this paragraph, entities

2 are defined by reference to the Standard Industrial

3 Classification (SIC) code, as follows:

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

5 code 5411.

6 ‘‘(ii) A general merchandise store is an en7 tity within SIC codes 5300 through 5399 and

8 5499.

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

10 code 5912.’’.

11 (c) REINSTATEMENT OF LEGAL DRUG EXEMP12 TION.—Section 204 of the Controlled Substances Act (21

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

14 new subsection:

15 ‘‘(e) REINSTATEMENT OF EXEMPTION WITH RE16 SPECT TO EPHEDRINE, PSEUDOEPHEDRINE, AND PHEN17 YLPROPANOLAMINE DRUG PRODUCTS.—Pursuant to sub18 section (d)(1), the Attorney General shall by regulation

19 reinstate the exemption with respect to a particular ephed20 rine, pseudoephedrine, or phenylpropanolamine drug prod21 uct if the Attorney General determines that the drug prod22 uct is manufactured and distributed in a manner that pre23 vents diversion. In making this determination the Attorney

24 General shall consider the factors listed in subsection

25 (d)(2). Any regulation issued pursuant to this subsection
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1 may be amended or revoked based on the factors listed

2 in subsection (d)(4).’’.

3 (d) REGULATION OF RETAIL SALES.—

4 (1) PSEUDOEPHEDRINE.—

5 (A) LIMIT.—

6 (i) IN GENERAL.—Not sooner than

7 the effective date of this section and sub8 ject to the requirements of clause (ii), the

9 Attorney General may establish by regula10 tion a single-transaction limit of 24 grams

11 of pseudoephedrine base for retail distribu12 tors. Notwithstanding any other provision

13 of law, the single-transaction threshold

14 quantity for pseudoephedrine-containing

15 compounds may not be lowered beyond

16 that established in this paragraph.

17 (ii) CONDITIONS.—In order to estab18 lish a single-transaction limit of 24 grams

19 of pseudoephedrine base, the Attorney

20 General shall establish, following notice,

21 comment, and an informal hearing that

22 since the date of enactment of this Act

23 there are a significant number of instances

24 where ordinary over-the-counter

25 pseudoephedrine products as established in
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1 paragraph (45) of section 102 of the Con2 trolled Substances Act (21 U.S.C. 802

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

4 distributors as established in paragraph

5 (46) in section 102 of the Controlled Sub6 stances Act (21 U.S.C. 802(46)), are being

7 widely used as a significant source of pre8 cursor chemicals for illegal manufacture of

9 a controlled substance for distribution or

10 sale.

11 (B) VIOLATION.—Any individual or busi12 ness that violates the thresholds established in

13 this paragraph shall, with respect to the first

14 such violation, receive a warning letter from the

15 Attorney General and, if a business, the busi16 ness shall be required to conduct mandatory

17 education of the sales employees of the firm

18 with regard to the legal sales of

19 pseudoephedrine. For a second violation occur20 ring within 2 years of the first violation, the

21 business or individual shall be subject to a civil

22 penalty of not more than $5,000. For any sub23 sequent violation occurring within 2 years of

24 the previous violation, the business or individual

25 shall be subject to a civil penalty not to exceed
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1 the amount of the previous civil penalty plus

2 $5,000.

3 (2) PHENYLPROPANOLAMINE.—

4 (A) LIMIT.—

5 (i) IN GENERAL.—Not sooner than

6 the effective date of this section and sub7 ject to the requirements of clause (ii), the

8 Attorney General may establish by regula9 tion a single-transaction limit of 24 grams

10 of phenylpropanolamine base for retail dis11 tributors. Notwithstanding any other provi12 sion of law, the single-transaction thresh13 old quantity for phenylpropanolamine-con14 taining compounds may not be lowered be15 yond that established in this paragraph.

16 (ii) CONDITIONS.—In order to estab17 lish a single-transaction limit of 24 grams

18 of phenylpropanolamine base, the Attorney

19 General shall establish, following notice,

20 comment, and an informal hearing, that

21 since the date of enactment of this Act

22 there are a significant number of instances

23 where ordinary over-the-counter phenyl24 propanolamine products as established in

25 paragraph (45) of section 102 of the Con-
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1 trolled Substances Act (21 U.S.C.

2 802(45)), as added by this Act, sold by re3 tail distributors as established in para4 graph (46) in section 102 of the Controlled

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

6 being used as a significant source of pre7 cursor chemicals for illegal manufacture of

8 a controlled substance in bulk.

9 (B) VIOLATION.—Any individual or busi10 ness that violates the thresholds established in

11 this paragraph shall, with respect to the first

12 such violation, receive a warning letter from the

13 Attorney General and, if a business, the busi14 ness shall be required to conduct mandatory

15 education of the sales employees of the firm

16 with regard to the legal sales of

17 pseudoephedrine. For a second violation occur18 ring within 2 years of the first violation, the

19 business or individual shall be subject to a civil

20 penalty of not more than $5,000. For any sub21 sequent violation occurring within 2 years of

22 the previous violation, the business or individual

23 shall be subject to a civil penalty not to exceed

24 the amount of the previous civil penalty plus

25 $5,000.
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1 (3) SIGNIFICANT NUMBER OF INSTANCES.—

2 (A) IN GENERAL.—For purposes of this

3 subsection, isolated or infrequent use, or use in

4 insubstantial quantities, of ordinary over-the5 counter pseudoephedrine or phenylpropanola6 mine, as defined in section 102(45) of the Con7 trolled Substances Act, as added by section

8 401(b) of this Act, and sold at the retail level

9 for the illicit manufacture of methamphetamine

10 or amphetamine may not be used by the Attor11 ney General as the basis for establishing the

12 conditions under paragraph (1)(A)(ii) of this

13 subsection, with respect to pseudoephedrine,

14 and paragraph (2)(A)(ii) of this subsection,

15 with respect to phenylpropanolamine.

16 (B) CONSIDERATIONS AND REPORT.—The

17 Attorney General shall—

18 (i) in establishing a finding under

19 paragraph (1)(A)(ii) or (2)(A)(ii) of this

20 subsection, consult with the Secretary of

21 Health and Human Services in order to

22 consider the effects on public health that

23 would occur from the establishment of new

24 single transaction limits as provided in

25 such paragraph; and
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1 (ii) upon establishing a finding, trans2 mit a report to the Committees on the Ju3 diciary in both, respectively, the House of

4 Representatives and the Senate in which

5 the Attorney General will provide the fac6 tual basis for establishing the new single

7 transaction limits.

8 (4) DEFINITION OF BUSINESS.—For purposes

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

10 entity that makes the direct sale and does not in11 clude the parent company of a business not involved

12 in a direct sale regulated by this subsection.

13 (5) JUDICIAL REVIEW.—Any regulation promul14 gated by the Attorney General under this section

15 shall be subject to judicial review pursuant to section

16 507 of the Controlled Substances Act (21 U.S.C.

17 877).

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

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

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

21 General to modify thresholds (including cumulative

22 thresholds) for retail distributors for products other than

23 ordinary over-the-counter pseudoephedrine or phenyl24 propanolamine products (as defined in section 102(45) of
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1 the Controlled Substances Act, as added by this section)

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

3 (f) COMBINATION EPHEDRINE PRODUCTS.—

4 (1) IN GENERAL.—For the purposes of this sec5 tion, combination ephedrine products shall be treat6 ed the same as pseudoephedrine products, except

7 that—

8 (A) a single transaction limit of 24 grams

9 shall be effective as of the date of enactment of

10 this Act and shall apply to sales of all combina11 tion ephedrine products, notwithstanding the

12 form in which those products are packaged,

13 made by retail distributors or distributors re14 quired to submit a report under section

15 310(b)(3) of the Controlled Substances Act (as

16 added by section 402 of this Act);

17 (B) for regulated transactions for combina18 tion ephedrine products other than sales de19 scribed in subparagraph (A), the transaction

20 limit shall be—

21 (i) 1 kilogram of ephedrine base, ef22 fective on the date of enactment of this

23 Act; or

24 (ii) a threshold other than the thresh25 old described in clause (i), if established by
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1 the Attorney General not earlier than 1

2 year after the date of enactment of this

3 Act; and

4 (C) the penalties provided in subsection

5 (d)(1)(B) of this section shall take effect on the

6 date of enactment of this Act for any individual

7 or business that violates the single transaction

8 limit of 24 grams for combination ephedrine

9 products.

10 (2) DEFINITION.—For the purposes of this sec11 tion, the term ‘‘combination ephedrine product’’

12 means a drug product containing ephedrine or its

13 salts, optical isomers, or salts of optical isomers and

14 therapeutically significant quantities of another ac15 tive medicinal ingredient.

16 (g) EFFECTIVE DATE OF THIS SECTION.—Notwith17 standing any other provision of this Act, this section shall

18 not apply to the sale of any pseudoephedrine or phenyl19 propanolamine product prior to 12 months after the date

20 of enactment of this Act, except that, on application of

21 a manufacturer of a particular pseudoephedrine or phenyl22 propanolamine drug product, the Attorney General may,

23 in her sole discretion, extend such effective date up to an

24 additional six months. Notwithstanding any other provi-
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1 sion of law, the decision of the Attorney General on such

2 an application shall not be subject to judicial review.

3 SEC. 402. MAIL ORDER RESTRICTIONS.

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

5 U.S.C. 830(b)) is amended by adding at the end the fol6 lowing:

7 ‘‘(3) MAIL ORDER REPORTING.—(A) Each regu8 lated person who engages in a transaction with a

9 nonregulated person which—

10 ‘‘(i) involves ephedrine, pseudoephedrine,

11 or phenylpropanolamine (including drug prod12 ucts containing these chemicals); and

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

14 Service or any private or commercial carrier;

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

16 such transaction conducted during the previous

17 month to the Attorney General in such form, con18 taining such data, and at such times as the Attorney

19 General shall establish by regulation.

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

21 include—

22 ‘‘(i) the name of the purchaser;

23 ‘‘(ii) the quantity and form of the ephed24 rine, pseudoephedrine, or phenylpropanolamine

25 purchased; and
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1 ‘‘(iii) the address to which such ephedrine,

2 pseudoephedrine, or phenylpropanolamine was

3 sent.’’.

4 TITLE V—EDUCATION AND

5 RESEARCH

6 SEC. 501. INTERAGENCY METHAMPHETAMINE TASK FORCE.

7 (a) ESTABLISHMENT.—There is established a ‘‘Meth8 amphetamine Interagency Task Force’’ (referred to as the

9 ‘‘interagency task force’’) which shall consist of the follow10 ing members:

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

12 shall serve as chair.

13 (2) 2 representatives selected by the Attorney

14 General.

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

16 (4) The Secretary of Health and Human Serv17 ices or a designee.

18 (5) 2 representatives of State and local law en19 forcement and regulatory agencies, to be selected by

20 the Attorney General.

21 (6) 2 representatives selected by the Secretary

22 of Health and Human Services.

23 (7) 5 nongovernmental experts in drug abuse

24 prevention and treatment to be selected by the At25 torney General.
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1 (b) RESPONSIBILITIES.—The interagency task force

2 shall be responsible for designing, implementing, and eval3 uating the education and prevention and treatment prac4 tices and strategies of the Federal Government with re5 spect to methamphetamine and other synthetic stimulants.

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

7 meet at least once every 6 months.

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

9 interagency task force shall be paid out of existing Depart10 ment of Justice appropriations.

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

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

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

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

15 SEC. 502. PUBLIC HEALTH MONITORING.

16 The Secretary of Health and Human Services shall

17 develop a public health monitoring program to monitor

18 methamphetamine abuse in the United States. The pro19 gram shall include the collection and dissemination of data

20 related to methamphetamine abuse which can be used by

21 public health officials in policy development.

22 SEC. 503. PUBLIC-PRIVATE EDUCATION PROGRAM.

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

24 establish an advisory panel consisting of an appropriate

25 number of representatives from Federal, State, and local
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1 law enforcement and regulatory agencies with experience

2 in investigating and prosecuting illegal transactions of

3 precursor chemicals. The Attorney General shall convene

4 the panel as often as necessary to develop and coordinate

5 educational programs for wholesale and retail distributors

6 of precursor chemicals and supplies.

7 (b) CONTINUATION OF CURRENT EFFORTS.—The

8 Attorney General shall continue to—

9 (1) maintain an active program of seminars and

10 training to educate wholesale and retail distributors

11 of precursor chemicals and supplies regarding the

12 identification of suspicious transactions and their re13 sponsibility to report such transactions; and

14 (2) provide assistance to State and local law en15 forcement and regulatory agencies to facilitate the

16 establishment and maintenance of educational pro17 grams for distributors of precursor chemicals and

18 supplies.

19 SEC. 504. SUSPICIOUS ORDERS TASK FORCE.

20 (a) IN GENERAL.—The Attorney General shall estab21 lish a ‘‘Suspicious Orders Task Force’’ (the ‘‘Task

22 Force’’) which shall consist of—

23 (1) appropriate personnel from the Drug En24 forcement Administration (the ‘‘DEA’’) and other

25 Federal, State, and local law enforcement and regu-
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1 latory agencies with the experience in investigating

2 and prosecuting illegal transactions of listed chemi3 cals and supplies; and

4 (2) representatives from the chemical and phar5 maceutical industry.

6 (b) RESPONSIBILITIES.—The Task Force shall be re7 sponsible for developing proposals to define suspicious or8 ders of listed chemicals, and particularly to develop quan9 tifiable parameters which can be used by registrants in

10 determining if an order is a suspicious order which must

11 be reported to DEA. The quantifiable parameters to be

12 addressed will include frequency of orders, deviations from

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

14 recommend provisions as to what types of payment prac15 tices or unusual business practices shall constitute prima

16 facie suspicious orders. In evaluating the proposals, the

17 Task Force shall consider effectiveness, cost and feasibil18 ity for industry and government, an other relevant factors.

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

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

21 determined necessary by the Task Force.

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

23 to the Attorney General on its proposals with regard to

24 suspicious orders and the electronic reporting of sus25 picious orders within one year of the date of enactment
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1 of this Act. Copies of the report shall be forwarded to the

2 Committees of the Senate and House of Representatives

3 having jurisdiction over the regulation of listed chemical

4 and controlled substances.

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

6 Task Force shall be paid out of existing Department of

7 Justice funds or appropriations.

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

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

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

11 upon presentation of its report to the Attorney General,

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

13 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.