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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1965 Enrolled Bill (ENR)]

        S.1965

                       One Hundred Fourth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
   the third day of January, one thousand nine hundred and ninety-six

                                 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, and other relevant factors.
    (c) Meetings.--The Task Force shall meet at least two times per 
year and at such other times as may be determined necessary by the Task 
Force.
    (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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
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