I

103D CONGRESS

1ST SESSION H. R. 1331

To amend the Comprehensive Drug Abuse Prevention and Control Act of

1970 to control the diversion of certain chemicals used in the illicit

production of controlled substances, to provide greater flexibility in the

regulatory controls placed on the legitimate commerce in those chemicals,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 11, 1993

Mr. SCHUMER (for himself and Mr. SENSENBRENNER) introduced the following bill; which was referred jointly to the Committees on Energy and

Commerce and the Judiciary

A BILL

To amend the Comprehensive Drug Abuse Prevention and

Control Act of 1970 to control the diversion of certain

chemicals used in the illicit production of controlled substances, to provide greater flexibility in the regulatory

controls placed on the legitimate commerce in those

chemicals, and for other purposes.

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.

4 This Act may be cited as the ‘‘Chemical Control

5 Amendments Act of 1993’’.
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1 SEC. 2. DEFINITION AMENDMENTS.

2 (a) DEFINITIONS.—Section 102 of the Controlled

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

4 (1) in paragraph (33) by striking ‘‘any listed

5 precursor chemical or listed essential chemical’’ and

6 inserting ‘‘any list I chemical or any list II chemi7 cal’’;

8 (2) in paragraph (34)—

9 (A) by striking ‘‘listed precursor chemical’’

10 and inserting ‘‘list I chemical’’; and

11 (B) by striking ‘‘critical to the creation’’

12 and inserting ‘‘important to the manufacturer’’;

13 (3) in paragraph (34) (A), (F), and (H), by in14 serting ‘‘, its esters’’ before ‘‘and’’;

15 (4) in paragraph (35)—

16 (A) by striking ‘‘listed essential chemical’’

17 and inserting ‘‘list II chemical’’;

18 (B) by inserting ‘‘(other than a list I

19 chemical)’’ before ‘‘specified’’;

20 (C) by striking ‘‘as a solvent, reagent, or

21 catalyst’’; and

22 (5) in paragraph (38) by inserting ‘‘or who acts

23 as a broker or trader for an international trans24 action involving a listed chemical, a tableting ma25 chine, or an encapsulating machine’’ before the pe26 riod;
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1 (6) in paragraph (39)(A)—

2 (A) by striking ‘‘importation or exportation

3 of’’ and inserting ‘‘importation, or exportation

4 of, or an international transaction involving

5 shipment of,’’;

6 (B) in clause (iii) by inserting ‘‘or any cat7 egory of transaction for a specific listed chemi8 cal or chemicals’’ after ‘‘transaction’’;

9 (C) by amending clause (iv) to read as fol10 lows:

11 ‘‘(iv) any transaction in a listed chemical

12 that is contained in a drug that may be mar13 keted or distributed lawfully in the United

14 States under the Federal Food, Drug, and Cos15 metic Act (21 U.S.C. 301 et seq.) unless—

16 ‘‘(I)(aa) the drug contains ephedrine

17 or its salts, optical isomers, or salts of op18 tical isomers as the only active medicinal

19 ingredient or contains ephedrine and thera20 peutically insignificant quantities of an21 other active medicinal ingredient; or

22 ‘‘(bb) the Attorney General has deter23 mined under section 204 that the drug or

24 group of drugs is being diverted to obtain
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1 the listed chemical for use in the illicit pro2 duction of a controlled substance; and

3 ‘‘(II) the quantity of ephedrine or

4 other listed chemical contained in the drug

5 included in the transaction or multiple

6 transactions equals or exceeds the thresh7 old established for that chemical by the At8 torney General.’’; and

9 (D) in clause (v) by striking the semicolon

10 and inserting ‘‘which the Attorney General has

11 by regulation designated as exempt from the

12 application of this title and title II based on a

13 finding that the mixture is formulated in such

14 a way that it cannot be easily used in the illicit

15 production of a controlled substance and that

16 the listed chemical or chemicals contained in

17 the mixture cannot be readily recovered;’’;

18 (7) in paragraph (40) by striking ‘‘listed pre19 cursor chemical or a listed essential chemical’’ each

20 place it appears and inserting ‘‘list I chemical or a

21 list II chemical’’; and

22 (8) by adding at the end the following new

23 paragraphs:

24 ‘‘(43) The term ‘international transaction’ means a

25 transaction involving the shipment of a listed chemical
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1 across an international border (other than a United States

2 border) in which a broker or trader located in the United

3 States participates.

4 ‘‘(44) The terms ‘broker’ and ‘trader’ mean a person

5 that assists in arranging an international transaction in

6 a listed chemical by—

7 ‘‘(A) negotiating contracts;

8 ‘‘(B) serving as an agent or intermediary; or

9 ‘‘(C) bringing together a buyer and seller,

10 buyer, and transporter, or a seller and transporter.’’.

11 (b) REMOVAL OF EXEMPTION OF CERTAIN DRUGS.—

12 (1) PROCEDURE.—Part B of the Controlled

13 Substances Act (21 U.S.C. 811 et seq.) is amended

14 by adding at the end the following new section:

15 ‘‘REMOVAL OF EXEMPTION OF CERTAIN DRUGS

16 ‘‘SEC. 204. (a) REMOVAL OF EXEMPTION.—The At17 torney General shall by regulation remove from exemption

18 under section 102(39)(A)(iv)(II) a drug or group of drugs

19 that the Attorney General finds is being diverted to obtain

20 a listed chemical for use in the illicit production of a con21 trolled substance.

22 ‘‘(b) FACTORS TO BE CONSIDERED.—In removing a

23 drug or group of drugs from exemption under subsection

24 (a), the Attorney General shall consider, with respect to

25 a drug or group of drugs that is proposed to be removed

26 from exemption—
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1 ‘‘(1) the scope, duration, and significance of the

2 diversion;

3 ‘‘(2) whether the drug or group of drugs is for4 mulated in such a way that it cannot be easily used

5 in the illicit production of a controlled substance;

6 and

7 ‘‘(3) whether the listed chemical can be readily

8 recovered from the drug or group of drugs.

9 ‘‘(c) SPECIFICITY OF DESIGNATION.—The Attorney

10 General shall limit the designation of a drug or a group

11 of drugs removed from exemption under subsection (a) to

12 the most particularly identifiable type of drug or group

13 of drugs for which evidence of diversion exists unless there

14 is evidence, based on the pattern of diversion and other

15 relevant factors, that the diversion will not be limited to

16 that particular drug or group of drugs.

17 ‘‘(d) REINSTATEMENT OF EXEMPTION WITH RE18 SPECT TO PARTICULAR DRUG PRODUCTS.—

19 ‘‘(1) REINSTATEMENT.—On application by a

20 manufacturer of a particular drug product that has

21 been removed from exemption under subsection (a),

22 the Attorney General shall by regulation reinstate

23 the exemption with respect to that particular drug

24 product if the Attorney General determines that the
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1 particular drug product is manufactured and distrib2 uted in a manner that prevents diversion.

3 ‘‘(2) FACTORS TO BE CONSIDERED.—In decid4 ing whether to reinstate the exemption with respect

5 to a particular drug product under paragraph (1),

6 the Attorney General shall consider—

7 ‘‘(A) the package sizes and manner of

8 packaging of the drug product;

9 ‘‘(B) the manner of distribution and adver10 tising of the drug product;

11 ‘‘(C) evidence of diversion of the drug

12 product;

13 ‘‘(D) any actions taken by the manufac14 turer to prevent diversion of the drug product;

15 and

16 ‘‘(E) such other factors as are relevant to

17 and consistent with the public health and safe18 ty, including the factors described in subsection

19 (b) as applied to the drug product.

20 ‘‘(3) STATUS PENDING APPLICATION FOR REIN21 STATEMENT.—A transaction involving a particular

22 drug product that is the subject of a bona fide pend23 ing application for reinstatement of exemption filed

24 with the Attorney General not later than 60 days

25 after a regulation removing the exemption is issued
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1 pursuant to subsection (a) shall not be considered to

2 be a regulated transaction if the transaction occurs

3 during the pendency of the application and, if the

4 Attorney General denies the application, during the

5 period of 60 days following the date on which the

6 Attorney General denies the application, unless—

7 ‘‘(A) the Attorney General has evidence

8 that, applying the factors described in sub9 section (b) to the drug product, the drug prod10 uct is being diverted; and

11 ‘‘(B) the Attorney General so notifies the

12 applicant.

13 ‘‘(4) AMENDMENT AND MODIFICATION.—A reg14 ulation reinstating an exemption under paragraph

15 (1) may be modified or revoked with respect to a

16 particular drug product upon a finding that—

17 ‘‘(A) applying the factors described in sub18 section (b) to the drug product, the drug prod19 uct is being diverted; or

20 ‘‘(B) there is a significant change in the

21 data that led to the issuance of the regula22 tion.’’.

23 (2) TECHNICAL AMENDMENT.—The table of

24 contents of the Comprehensive Drug Abuse Preven25 tion and Control Act of 1970 (84 Stat. 1236) is
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1 amended by adding at the end of the section relating

2 to part B of title II the following new item:

‘‘Sec. 204. Removal of exemption of certain drugs.’’.

3 (c) REGULATION OF LISTED CHEMICALS.—Section

4 310 of the Controlled Substances Act (21 U.S.C. 830) is

5 amended—

6 (1) in subsection (a)(1)—

7 (A) by striking ‘‘precursor chemical’’ and

8 inserting ‘‘list I chemical’’; and

9 (B) in subparagraph (B) by striking ‘‘an

10 essential chemical’’ and inserting ‘‘a list II

11 chemical’’; and

12 (2) in subsection (c)(2)(D) by striking ‘‘precur13 sor chemical’’ and inserting ‘‘chemical control’’.

14 SEC. 3. REGISTRATION REQUIREMENTS.

15 (a) RULES AND REGULATIONS.—Section 301 of the

16 Controlled Substances Act (21 U.S.C. 821) is amended

17 by striking the period and inserting ‘‘and to the registra18 tion and control of regulated persons and of regulated

19 transactions.’’.

20 (b) PERSONS REQUIRED TO REGISTER UNDER SEC21 TION 302.—Section 302 of the Controlled Substances Act

22 (21 U.S.C. 822) is amended—

23 (1) in subsection (a)(1) by inserting ‘‘or list I

24 chemical’’ after ‘‘controlled substance’’ each place it

25 appears;
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1 (2) in subsection (b)—

2 (A) by inserting ‘‘or list I chemicals’’ after

3 ‘‘controlled substances’’; and

4 (B) by inserting ‘‘or chemicals’’ after

5 ‘‘such substances’’;

6 (3) in subsection (c) by inserting ‘‘or list I

7 chemical’’ after ‘‘controlled substance’’ each place it

8 appears; and

9 (4) in subsection (e) by inserting ‘‘or list I

10 chemicals’’ after ‘‘controlled substances’’.

11 (c) REGISTRATION REQUIREMENTS UNDER SECTION

12 303.—Section 303 of the Controlled Substances Act (21

13 U.S.C. 823) is amended by adding at the end the following

14 new subsection:

15 ‘‘(h) The Attorney General shall register an applicant

16 to distribute a list I chemical unless the Attorney General

17 determines that registration of the applicant is inconsist18 ent with the public interest. Registration under this sub19 section shall not be required for the distribution of a drug

20 product that is exempted under section 102(39)(A)(iv). In

21 determining the public interest for the purposes of this

22 subsection, the Attorney General shall consider—

23 ‘‘(1) maintenance by the applicant of effective

24 controls against diversion of listed chemicals into

25 other than legitimate channels;
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1 ‘‘(2) compliance by the applicant with applica2 ble Federal, State and local law;

3 ‘‘(3) any prior conviction record of the appli4 cant under Federal or State laws relating to con5 trolled substances or to chemicals controlled under

6 Federal or State law;

7 ‘‘(4) any past experience of the applicant in the

8 manufacture and distribution of chemicals; and

9 ‘‘(5) such other factors as are relevant to and

10 consistent with the public health and safety.’’.

11 (d) DENIAL, REVOCATION, OR SUSPENSION OF REG12 ISTRATION.—Section 304 of the Controlled Substances

13 Act (21 U.S.C. 824) is amended—

14 (1) in subsection (a)—

15 (A) by inserting ‘‘or a list I chemical’’

16 after ‘‘controlled substance’’ each place it ap17 pears; and

18 (B) by inserting ‘‘or list I chemicals’’ after

19 ‘‘controlled substances’’;

20 (2) in subsection (b) by inserting ‘‘or list I

21 chemical’’ after ‘‘controlled substance’’;

22 (3) in subsection (f) by inserting ‘‘or list I

23 chemicals’’ after ‘‘controlled substances’’ each place

24 it appears; and

25 (4) in subsection (g)—
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1 (A) by inserting ‘‘or list I chemicals’’ after

2 ‘‘controlled substances’’ each place it appears;

3 and

4 (B) by inserting ‘‘or list I chemical’’ after

5 ‘‘controlled substance’’ each place it appears.

6 (e) PERSONS REQUIRED TO REGISTER UNDER SEC7 TION 1007.—Section 1007 of the Controlled Substances

8 Import and Export Act (21 U.S.C. 957) is amended—

9 (1) in subsection (a)—

10 (A) in paragraph (1) by inserting ‘‘or list

11 I chemical’’ after ‘‘controlled substance’’; and

12 (B) in paragraph (2) by striking ‘‘in sched13 ule I, II, III, IV, or V,’’ and inserting ‘‘or list

14 I chemical,’’; and

15 (2) in subsection (b)—

16 (A) in paragraph (1) by inserting ‘‘or list

17 I chemical’’ after ‘‘controlled substance’’ each

18 place it appears; and

19 (B) in paragraph (2) by inserting ‘‘or list

20 I chemicals’’ after ‘‘controlled substances’’.

21 (f) REGISTRATION REQUIREMENTS UNDER SECTION

22 1008.—Section 1008 of the Controlled Substances Import

23 and Export Act (21 U.S.C. 958) is amended—

24 (1) in subsection (c)—

25 (A) by inserting ‘‘(1)’’ after ‘‘(c)’’; and
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1 (B) by adding at the end the following new

2 paragraph:

3 ‘‘(2)(A) The Attorney General shall register an appli4 cant to import or export a list I chemical unless the Attor5 ney General determines that registration of the applicant

6 is inconsistent with the public interest. Registration under

7 this subsection shall not be required for the import or ex8 port of a drug product that is exempted under section

9 102(39)(A)(iv).

10 ‘‘(B) In determining the public interest for the pur11 poses of subparagraph (A), the Attorney General shall

12 consider the factors specified in section 303(h).’’;

13 (2) in subsection (d)—

14 (A) in paragraph (3) by inserting ‘‘or list

15 I chemical or chemicals,’’ after ‘‘substances,’’;

16 and

17 (B) in paragraph (6) by inserting ‘‘or list

18 I chemicals’’ after ‘‘controlled substances’’ each

19 place it appears;

20 (3) in subsection (e) by striking ‘‘and 307’’ and

21 inserting ‘‘307, and 310’’; and

22 (4) in subsections (f), (g), and (h) by inserting

23 ‘‘or list I chemicals’’ after ‘‘controlled substances’’

24 each place it appears.
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1 (g) PROHIBITED ACTS C.—Section 403(a) of the

2 Controlled Substances Act (21 U.S.C. 843(a)) is amend3 ed—

4 (1) by striking ‘‘or’’ at the end of paragraph

5 (7);

6 (2) by striking the period at the end of para7 graph (8) and inserting ‘‘; or’’; and

8 (3) by adding at the end the following new

9 paragraph:

10 ‘‘(9) if the person is a regulated person, to dis11 tribute, import, or export a list I chemical without

12 the registration required by this Act.’’.

13 SEC. 4. REPORTING OF LISTED CHEMICAL MANUFACTUR14 ING.

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

16 U.S.C. 830(b)) is amended—

17 (1) by inserting ‘‘(1)’’ after ‘‘(b)’’;

18 (2) by redesignating paragraphs (1), (2), (3),

19 and (4) as subparagraphs (A), (B), (C), and (D), re20 spectively;

21 (3) by striking ‘‘paragraph (1)’’ each place it

22 appears and inserting ‘‘subparagraph (A)’’;

23 (4) by striking ‘‘paragraph (2)’’ and inserting

24 ‘‘subparagraph (B)’’;
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1 (5) by striking ‘‘paragraph (3)’’ and inserting

2 ‘‘subparagraph (C)’’; and

3 (6) by adding at the end the following new

4 paragraph:

5 ‘‘(2) A regulated person that manufactures a

6 listed chemical shall report annually to the Attorney

7 General, in such form and manner and containing

8 such specific data as the Attorney General shall pre9 scribe by regulation, information concerning listed

10 chemicals manufactured by the person. The require11 ment of the preceding sentence shall not apply to the

12 manufacture of a drug product that is exempted

13 under section 102(39)(A)(iv).’’.

14 SEC. 5. REPORTS BY BROKERS AND TRADERS; CRIMINAL

15 PENALTIES.

16 (a) NOTIFICATION, SUSPENSION OF SHIPMENT, AND

17 PENALTIES WITH RESPECT TO IMPORTATION AND EX18 PORTATION OF LISTED CHEMICALS.—Section 1018 of the

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

20 971) is amended by adding at the end the following new

21 subsection:

22 ‘‘(d) A person located in the United States who is

23 a broker or trader for an international transaction in a

24 listed chemical that is a regulated transaction solely be25 cause of that person’s involvement as a broker or trader
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1 shall, with respect to that transaction, be subject to all

2 of the notification, reporting, recordkeeping, and other re3 quirements placed upon exporters of listed chemicals by

4 this title and title II.’’.

5 (b) PROHIBITED ACTS A.—Section 1010(d) of the

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

7 960(d)) is amended to read as follows:

8 ‘‘(d) A person who knowingly or intentionally—

9 ‘‘(1) imports or exports a listed chemical with

10 intent to manufacture a controlled substance in vio11 lation of this title or title II;

12 ‘‘(2) exports a listed chemical in violation of the

13 laws of the country to which the chemical is ex14 ported or serves as a broker or trader for an inter15 national transaction involving a listed chemical, if

16 the transaction is in violation of the laws of the

17 country to which the chemical is exported;

18 ‘‘(3) imports or exports a listed chemical know19 ing, or having reasonable cause to believe, that the

20 chemical will be used to manufacture a controlled

21 substance in violation of this title or title II; or

22 ‘‘(4) exports a listed chemical, or serves as a

23 broker or trader for an international transaction in24 volving a listed chemical, knowing, or having reason25 able cause to believe, that the chemical will be used
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1 to manufacture a controlled substance in violation of

2 the laws of the country to which the chemical is ex3 ported,

4 shall be fined in accordance with title 18, imprisoned not

5 more than 10 years, or both.’’.

6 SEC. 6. EXEMPTION AUTHORITY; ADDITIONAL PENALTIES.

7 (a) NOTIFICATION REQUIREMENT.—Section 1018 of

8 the Controlled Substances Import and Export Act (21

9 U.S.C. 971), as amended by section 5(a), is amended by

10 adding at the end the following new subsection:

11 ‘‘(e)(1) The Attorney General may by regulation re12 quire that the 15-day notification requirement of sub13 section (a) apply to all exports of a listed chemical to a

14 specified country, regardless of the status of certain cus15 tomers in such country as regular customers, if the Attor16 ney General finds that such notification is necessary to

17 support effective chemical diversion control programs or

18 is required by treaty or other international agreement to

19 which the United States is a party.

20 ‘‘(2) The Attorney General may by regulation waive

21 the 15-day notification requirement for exports of a listed

22 chemical to a specified country if the Attorney General

23 determines that such notification is not required for effec24 tive chemical diversion control. If the notification require25 ment is waived, exporters of the listed chemical shall be
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1 required to submit to the Attorney General reports of indi2 vidual exportations or periodic reports of such exportation

3 of the listed chemical, at such time or times and contain4 ing such information as the Attorney General shall estab5 lish by regulation.

6 ‘‘(3) The Attorney General may by regulation waive

7 the 15-day notification requirement for the importation of

8 a listed chemical if the Attorney General determines that

9 such notification is not necessary for effective chemical di10 version control. If the notification requirement is waived,

11 importers of the listed chemical shall be required to submit

12 to the Attorney General reports of individual importations

13 or periodic reports of the importation of the listed chemi14 cal, at such time or times and containing such information

15 as the Attorney General shall establish by regulation.’’.

16 (b) PROHIBITED ACTS A.—Section 1010(d) of the

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

18 960(d)), as amended by section 5(b), is amended—

19 (1) by striking ‘‘or’’ at the end of paragraph

20 (3);

21 (2) by striking the comma at the end of para22 graph (4) and inserting a semicolon; and

23 (3) by adding at the end the following new

24 paragraphs:
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1 ‘‘(5) imports or exports a listed chemical, with

2 the intent to evade the reporting or recordkeeping

3 requirements of section 1018 applicable to such im4 portation or exportation by falsely representing to

5 the Attorney General that the importation or expor6 tation qualifies for a waiver of the 15-day notifica7 tion requirement granted pursuant to section

8 1018(e) (2) or (3) by misrepresenting the actual

9 country of final destination of the listed chemical or

10 the actual listed chemical being imported or ex11 ported; or

12 ‘‘(6) imports or exports a listed chemical in vio13 lation of section 1007 or 1018,’’.

14 SEC. 7. AMENDMENTS TO LIST I.

15 Section 102(34) of the Controlled Substances Act (21

16 U.S.C. 802(34)) is amended—

17 (1) by striking subparagraphs (O), (U), and

18 (W);

19 (2) by redesignating subparagraphs (P) through

20 (T) as (O) through (S), subparagraph (V) as (T),

21 and subparagraphs (X) and (Y) as (U) and (X), re22 spectively;

23 (3) in subparagraph (X), as redesignated by

24 paragraph (2), by striking ‘‘(X)’’ and inserting

25 ‘‘(U)’’; and
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1 (4) by inserting after subparagraph (U), as re2 designated by paragraph (2), the following new sub3 paragraphs:

4 ‘‘(V) benzaldehyde.

5 ‘‘(W) nitroethane.’’.

6 SEC. 8. ELIMINATION OF REGULAR SUPPLIER STATUS AND

7 CREATION OF REGULAR IMPORTER STATUS.

8 (a) DEFINITION.—Section 102(37) of the Controlled

9 Substances Act (21 U.S.C. 802(37)) is amended to read

10 as follows:

11 ‘‘(37) The term ‘regular importer’ means, with re12 spect to a listed chemical, a person that has an established

13 record as an importer of that listed chemical that is re14 ported to the Attorney General.’’.

15 (b) NOTIFICATION.—Section 1018 of the Controlled

16 Substances Act (21 U.S.C. 971) is amended—

17 (1) in subsection (b)—

18 (A) in paragraph (1) by striking ‘‘regular

19 supplier of the regulated person’’ and inserting

20 ‘‘to an importation by a regular importer’’; and

21 (B) in paragraph (2)—

22 (i) by striking ‘‘a customer or supplier

23 of a regulated person’’ and inserting ‘‘a

24 customer of a regulated person or to an

25 importer’’; and
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1 (ii) by striking ‘‘regular supplier’’ and

2 inserting ‘‘the importer as a regular im3 porter’’; and

4 (2) in subsection (c)(1) by striking ‘‘regular

5 supplier’’ and inserting ‘‘regular importer’’.

6 SEC. 9. ADMINISTRATIVE INSPECTIONS AND AUTHORITY.

7 Section 510 of the Controlled Substances Act (21

8 U.S.C. 880) is amended—

9 (1) by amending subsection (a)(2) to read as

10 follows:

11 ‘‘(2) places, including factories, warehouses,

12 and other establishments, and conveyances, where

13 persons registered under section 303 (or exempt

14 from registration under section 302(d) or by regula15 tion of the Attorney General) or regulated persons

16 may lawfully hold, manufacture, distribute, dispense,

17 administer, or otherwise dispose of controlled sub18 stances or listed chemicals or where records relating

19 to those activities are maintained.’’; and

20 (2) in subsection (b)(3)—

21 (A) in subparagraph (B) by inserting ‘‘,

22 listed chemicals,’’ after ‘‘unfinished drugs’’; and

23 (B) in subparagraph (C) by inserting ‘‘or

24 listed chemical’’ after ‘‘controlled substance’’
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1 and inserting ‘‘or chemical’’ after ‘‘such sub2 stance’’.

3 SEC. 10. THRESHOLD AMOUNTS.

4 Section 102(39)(A) of the Controlled Substances Act

5 (21 U.S.C. 802(39)(A)), as amended by section 2, is

6 amended by inserting ‘‘of a listed chemical, or if the Attor7 ney General establishes a threshold amount for a specific

8 listed chemical,’’ before ‘‘a threshold amount, including a

9 cumulative threshold amount for multiple transactions’’.

10 SEC. 11. MANAGEMENT OF LISTED CHEMICALS.

11 (a) IN GENERAL.—Part C of the Controlled Sub12 stances Act (21 U.S.C. 821 et seq.) is amended by adding

13 at the end the following new section:

14 ‘‘MANAGEMENT OF LISTED CHEMICALS

15 ‘‘SEC. 311. (a) OFFENSE.—It is unlawful for a per16 son who possesses a listed chemical with the intent that

17 it be used in the illegal manufacture of a controlled sub18 stance to manage the listed chemical or waste from the

19 manufacture of a controlled substance otherwise than as

20 required by regulations issued under sections 3001, 3002,

21 3003, 3004, and 3005 of the Solid Waste Disposal Act

22 (42 U.S.C. 6921, 6922, 6923, 6924, and 6925).

23 ‘‘(b) ENHANCED PENALTY.—(1) In addition to a

24 penalty that may be imposed for the illegal manufacture,

25 possession, or distribution of a listed chemical or toxic res26 idue of a clandestine laboratory, a person who violates sub-
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1 section (a) shall be assessed the costs described in para2 graph (2) and shall be imprisoned as described in para3 graph (3).

4 ‘‘(2) Pursuant to paragraph (1) a defendant shall be

5 assessed the following costs to the United States, a State,

6 or another authority or person that undertakes to correct

7 the results of the improper management of a listed chemi8 cal:

9 ‘‘(A) The cost of initial cleanup and disposal of

10 the listed chemical and contaminated property.

11 ‘‘(B) The cost of restoring property that is

12 damaged by exposure to a listed chemical for reha13 bilitation under Federal, State, and local standards.

14 ‘‘(3)(A) A violation of subsection (a) shall be pun15 ished as a class D felony, or in the case of a willful viola16 tion, as a class C felony.

17 ‘‘(B) It is the sense of the Congress that guidelines

18 issued by the Sentencing Commission regarding sentenc19 ing under this paragraph should recommend that the term

20 of imprisonment for a violation of subsection (a) should

21 not be less than 5 years, nor less than 10 years in the

22 case of a willful violation.

23 ‘‘(4) A court may order that all or a portion of the

24 earnings from work performed by a defendant in prison
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1 be withheld for payment of costs assessed under para2 graph (2).

3 ‘‘(c) USE OF FORFEITED ASSETS.—The Attorney

4 General may direct that assets forfeited under section 511

5 in connection with a prosecution under this section be

6 shared with State agencies that participated in the seizure

7 or cleaning up of a contaminated site.’’.

8 (b) EXCEPTION TO DISCHARGE IN BANKRUPTCY.—

9 Section 523(a) of title 11, United States Code, is amend10 ed—

11 (1) by striking ‘‘or’’ at the end of paragraph

12 (11);

13 (2) by striking the period at the end of para14 graph (12) and inserting ‘‘; or’’; and

15 (3) by adding at the end the following new

16 paragraph:

17 ‘‘(13) for costs assessed under section 311(b) of

18 the Controlled Substances Act.’’.

19 SEC. 12. FORFEITURE EXPANSION.

20 Section 511(a) of the Controlled Substances Act (21

21 U.S.C. 881(a)) is amended—

22 (1) in paragraph (6) by inserting ‘‘or listed

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

24 (2) in paragraph (9) by striking ‘‘a felony pro25 vision of’’.
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1 SEC. 13. ATTORNEY GENERAL ACCESS TO THE NATIONAL

2 PRACTITIONER DATA BANK.

3 Part B of the Health Care Quality Improvement Act

4 of 1986 (42 U.S.C. 11131 et seq.) is amended by adding

5 at the end the following new section:

6 ‘‘SEC. 428. DISCLOSURE OF INFORMATION TO THE ATTOR7 NEY GENERAL.

8 ‘‘Information respecting physicians or other licensed

9 health care practitioners reported to the Secretary (or to

10 the agency designated under section 424(b)) under this

11 part or section 1921 of the Social Security Act (42 U.S.C.

12 1396r–2) shall be provided to the Attorney General. The

13 Secretary shall—

14 ‘‘(1) transmit to the Attorney General such in15 formation as the Attorney General may designate or

16 request to assist the Drug Enforcement Administra17 tion in the enforcement of the Controlled Substances

18 Act (21 U.S.C. 801 et seq.) and other laws enforced

19 by the Drug Enforcement Administration; and

20 ‘‘(2) transmit such information related to

21 health care providers as the Attorney General may

22 designate or request to assist the Federal Bureau of

23 Investigation in the enforcement of title 18, the Act

24 entitled ‘An Act to regulate the practice of pharmacy

25 and the sale of poison in the consular districts of the

26 United States in China’, approved March 3, 1915
26

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1 (21 U.S.C. 201 et seq.), and chapter V of the Fed2 eral Food, Drug, and Cosmetic Act (21 U.S.C. 351

3 et seq.).’’.

4 SEC. 14. REGULATIONS AND EFFECTIVE DATE.

5 (a) REGULATIONS.—The Attorney General shall, not

6 later than 90 days after the date of enactment of this Act,

7 issue regulations necessary to carry out this Act.

8 (b) EFFECTIVE DATE.—This Act and the amend9 ments made by this Act shall become effective on the date

10 that is 120 days after the date of enactment of this Act.

Æ

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