104TH CONGRESS

2D SESSION H. R. 3852

AN ACT

To prevent the illegal manufacturing and use of

methamphetamine.
104TH CONGRESS

2D SESSION H. R. 3852

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’’.
2

•HR 3852 EH

1 (b) TABLE OF CONTENTS.—The table of contents for

2 this Act is as follows:

Sec. 1. Short title and table of contents.

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. Trafficking in methamphetamine penalty increases.

Sec. 302. Penalty increases for trafficking in listed chemicals.

Sec. 303. Enhanced penalty for dangerous handling of controlled substances:

amendment of sentencing guidelines.

TITLE IV—LEGAL MANUFACTURE, DISTRIBUTION, AND SALE OF

PRECURSOR CHEMICALS

Sec. 401. Diversion of certain precursor chemicals.

Sec. 402. Mail order restrictions.

TITLE V—EDUCATION AND RESEARCH

Sec. 501. Interagency methamphetamine task force.

Sec. 502. Public health monitoring.

Sec. 503. Public-private education program.

Sec. 504. Suspicious orders task force.
3

•HR 3852 EH

1 TITLE I—IMPORTATION OF

2 METHAMPHETAMINE AND

3 PRECURSOR CHEMICALS

4 SEC. 101. SUPPORT FOR INTERNATIONAL EFFORTS TO CON5 TROL DRUGS.

6 The Attorney General, in consultation with the Sec7 retary of State, shall coordinate international drug en8 forcement efforts to decrease the movement of meth9 amphetamine and methamphetamine precursors into the

10 United States.

11 SEC. 102. PENALTIES FOR MANUFACTURE OF LISTED

12 CHEMICALS OUTSIDE THE UNITED STATES

13 WITH INTENT TO IMPORT THEM INTO THE

14 UNITED STATES.

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

16 the Controlled Substances Import and Export Act (21

17 U.S.C. 959(a)) is amended—

18 (1) in the matter before paragraph (1), by in19 serting ‘‘or listed chemical’’ after ‘‘schedule I or II’’;

20 and

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

22 chemical’’ after ‘‘substance’’.

23 (b) UNLAWFUL MANUFACTURE OR DISTRIBUTION.—

24 Paragraphs (1) and (2) of section 1009(b) of the Con25 trolled Substances Import and Export Act (21 U.S.C.
4

•HR 3852 EH

1 959(b)) are amended by inserting ‘‘or listed chemical’’

2 after ‘‘controlled substance’’.

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

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

5 amended—

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

7 end;

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

9 the end and inserting ‘‘; or’’; and

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

11 ‘‘(7) manufactures, possesses with intent to dis12 tribute, or distributes a listed chemical in violation

13 of section 959 of this title.’’.

14 TITLE II—PROVISIONS TO CON15 TROL THE MANUFACTURE OF

16 METHAMPHETAMINE

17 SEC. 201. SEIZURE AND FORFEITURE OF REGULATED

18 CHEMICALS.

19 (a) PENALTIES FOR SIMPLE POSSESSION.—Section

20 404 of the Controlled Substances Act (21 U.S.C. 844) is

21 amended—

22 (1) in subsection (a)—

23 (A) by adding after the first sentence the

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

25 knowingly or intentionally to possess any list I
5

•HR 3852 EH

1 chemical obtained pursuant to or under author2 ity of a registration issued to that person under

3 section 303 of this title or section 1008 of title

4 III if that registration has been revoked or sus5 pended, if that registration has expired, or if

6 the registrant has ceased to do business in the

7 manner contemplated by his registration.’’; and

8 (B) by striking ‘‘drug or narcotic’’ and in9 serting ‘‘drug, narcotic, or chemical’’ each place

10 it appears; and

11 (2) in subsection (c), by striking ‘‘drug or nar12 cotic’’ and inserting ‘‘drug, narcotic, or chemical’’.

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

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

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

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

17 place it appears; and

18 (2) in paragraph (9), by—

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

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

21 (B) striking ‘‘a felony provision of’’.

22 (c) SEIZURE.—Section 607 of the Tariff Act of 1930

23 (19 U.S.C. 1607) is amended—

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

25 chemical’’ after ‘‘controlled substance’’; and
6

•HR 3852 EH

1 (2) by amending subsection (b) to read as fol2 lows:

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

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

5 such terms in section 102 of the Controlled Substances

6 Act (21 U.S.C. 802).’’.

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

8 SALES OF AGENTS USED IN METHAMPHET9 AMINE PRODUCTION.

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

11 States shall conduct a study on possible measures to effec12 tively prevent the diversion of red phosphorous, iodine, hy13 drochloric gas, and other agents for use in the production

14 of methamphetamine. Nothing in this section shall pre15 clude the Attorney General from taking any action the At16 torney General already is authorized to take with regard

17 to the regulation of listed chemicals under current law.

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

19 Attorney General shall submit a report to the Congress

20 of its findings pursuant to the study conducted under sub21 section (a) on the need for and advisability of preventive

22 measures.

23 (c) CONSIDERATIONS.—In developing recommenda24 tions under subsection (b), the Attorney General shall con25 sider—
7

•HR 3852 EH

1 (1) the use of red phosphorous, iodine, hydro2 chloric gas, and other agents in the illegal manufac3 ture of methamphetamine;

4 (2) the use of red phosphorous, iodine, hydro5 chloric gas, and other agents for legal purposes, and

6 the impact any regulations may have on these pur7 poses; and

8 (3) comments and recommendations from law

9 enforcement, manufacturers of such chemicals, and

10 the consumers of such chemicals for legal purposes.

11 SEC. 203. INCREASED PENALTIES FOR MANUFACTURE AND

12 POSSESSION OF EQUIPMENT USED TO MAKE

13 CONTROLLED SUBSTANCES.

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

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

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

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

18 person’’; and

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

20 ‘‘(2) Any person who violates paragraph (6) or (7)

21 of subsection (a), if the controlled substance is meth22 amphetamine, shall be sentenced to a term of imprison23 ment of not more than 10 years, a fine under title 18,

24 United States Code, or both; except that if any person
8

•HR 3852 EH

1 commits such a violation after one or more prior convic2 tions of that person—

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

4 subsection (a);

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

6 this subchapter or subchapter II of this chapter; or

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

8 or any State relating to controlled substances or list9 ed chemicals,

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

11 of imprisonment of not more than 20 years, a fine under

12 title 18, United States Code, or both.’’.

13 (b) SENTENCING COMMISSION.—The United States

14 Sentencing Commission shall amend the sentencing guide15 lines to ensure that the manufacture of methamphetamine

16 in violation of section 403(d)(2) of the Controlled Sub17 stances Act, as added by subsection (a), is adequately pun18 ished.

19 (c) TECHNICAL AMENDMENT.—Section 403(d) of the

20 Controlled Substances Act (21 U.S.C. 843(d)) is amend21 ed—

22 (1) by striking ‘‘of not more than $30,000’’ and

23 inserting ‘‘under title 18, United States Code’’; and

24 (2) by striking ‘‘of not more than $60,000’’ and

25 inserting ‘‘under title 18, United States Code’’.
9

•HR 3852 EH

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 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:
10

•HR 3852 EH

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 or distributed further by that customer, for the unlawful

18 production of controlled substances or listed chemicals a

19 firm distributes and 2 weeks or more after the notification

20 the notified firm distributes a laboratory supply to the cus21 tomer.’’.

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:
11

•HR 3852 EH

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:
12

•HR 3852 EH

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:
13

•HR 3852 EH

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.
14

•HR 3852 EH

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 on 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. TRAFFICKING IN METHAMPHETAMINE PENALTY

18 INCREASES.

19 (a) CONTROLLED SUBSTANCES ACT.—

20 (1) LARGE AMOUNTS.—Section

21 401(b)(1)(A)(viii) of the Controlled Substances Act

22 (21 U.S.C. 841(b)(1)(A)(viii)) is amended by—

23 (A) striking ‘‘100 grams or more of meth24 amphetamine,’’ and inserting ‘‘50 grams or

25 more of methamphetamine,’’; and
15

•HR 3852 EH

1 (B) striking ‘‘1 kilogram or more of a mix2 ture or substance containing a detectable

3 amount of methamphetamine’’ and inserting

4 ‘‘500 grams or more of a mixture or substance

5 containing a detectable amount of methamphet6 amine’’.

7 (2) SMALLER AMOUNTS.—Section

8 401(b)(1)(B)(viii) of the Controlled Substances Act

9 (21 U.S.C. 841(b)(1)(B)(viii)) is amended by—

10 (A) striking ‘‘10 grams or more of meth11 amphetamine,’’ and inserting ‘‘5 grams or more

12 of methamphetamine,’’; and

13 (B) striking ‘‘100 grams or more of a mix14 ture or substance containing a detectable

15 amount of methamphetamine’’ and inserting

16 ‘‘50 grams or more of a mixture or substance

17 containing a detectable amount of methamphet18 amine’’.

19 (b) IMPORT AND EXPORT ACT.—

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

21 of the Controlled Substances Import and Export Act

22 (21 U.S.C. 960(b)(1)(H)) is amended by—

23 (A) striking ‘‘100 grams or more of meth24 amphetamine,’’ and inserting ‘‘50 grams or

25 more of methamphetamine,’’; and
16

•HR 3852 EH

1 (B) striking ‘‘1 kilogram or more of a mix2 ture or substance containing a detectable

3 amount of methamphetamine’’ and inserting

4 ‘‘500 grams or more of a mixture or substance

5 containing a detectable amount of methamphet6 amine’’.

7 (2) SMALLER AMOUNTS.—Section

8 1010(b)(2)(H) of the Controlled Substances Import

9 and Export Act (21 U.S.C. 960(b)(2)(H)) is amend10 ed by—

11 (A) striking ‘‘10 grams or more of meth12 amphetamine,’’ and inserting ‘‘5 grams or more

13 of methamphetamine,’’; and

14 (B) striking ‘‘100 grams or more of a mix15 ture or substance containing a detectable

16 amount of methamphetamine’’ and inserting

17 ‘‘50 grams or more of a mixture or substance

18 containing a detectable amount of methamphet19 amine’’.

20 SEC. 302. PENALTY INCREASES FOR TRAFFICKING IN LIST21 ED CHEMICALS.

22 (a) CONTROLLED SUBSTANCES ACT.—Section

23 401(d) of the Controlled Substances Act (21 U.S.C.

24 841(d)) is amended by striking the period and inserting

25 the following: ‘‘or, with respect to a violation of paragraph
17

•HR 3852 EH

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

2 if the Government proves the quantity of controlled sub3 stance that could reasonably have been manufactured in

4 a clandestine setting using the quantity of list I chemicals

5 possessed or distributed, the penalty corresponding to the

6 quantity of controlled substance that could have been pro7 duced under subsection (b).’’.

8 (b) CONTROLLED SUBSTANCE IMPORT AND EXPORT

9 ACT.—Section 1010(d) of the Controlled Substance Im10 port and Export Act (21 U.S.C. 960(d)) is amended by

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

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

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

14 Government proves the quantity of controlled substance

15 that could reasonably have been manufactured in a clan16 destine setting using the quantity of list I chemicals im17 ported, the penalty corresponding to the quantity of con18 trolled substance that could have been produced under

19 title II.’’.

20 (c) DETERMINATION OF QUANTITY.—

21 (1) IN GENERAL.—For the purposes of this sec22 tion and the amendments made by this section, the

23 quantity of controlled substance that could reason24 ably have been manufactured shall be determined by
18

•HR 3852 EH

1 using a table of manufacturing conversion ratios for

2 list I chemicals.

3 (2) TABLE.—The table shall be—

4 (A) established by the United States Sen5 tencing Commission based on scientific, law en6 forcement, and other data the Sentencing Com7 mission deems appropriate; and

8 (B) dispositive of this issue.

9 SEC. 303. ENHANCED PENALTY FOR DANGEROUS HAN10 DLING OF CONTROLLED SUBSTANCES:

11 AMENDMENT OF SENTENCING GUIDELINES.

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

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

14 States Sentencing Commission shall determine whether

15 the Sentencing Guidelines adequately punish an offense

16 described in subsection (b) and, if not, promulgate guide17 lines or amend existing guidelines to provide an appro18 priate enhancement of the punishment for a defendant

19 convicted of that offense.

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

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

22 or 403(a)(7) of the Controlled Substances Act (21 U.S.C.

23 841(d), 841(g)(1), 843(a)(6), and 843(a)(7)), if in the

24 commission of the offense the defendant violated—
19

•HR 3852 EH

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

2 Solid Waste Disposal Act (relating to handling haz3 ardous waste in a manner inconsistent with Federal

4 or applicable State law);

5 (2) section 103(b) of the Comprehensive Envi6 ronmental Response, Compensation and Liability

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

8 a reportable quantity of a hazardous substance into

9 the environment);

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

11 309(c)(3), 311(b)(3), or 311(b)(5) of the Federal

12 Water Pollution Control Act (relating to the unlaw13 ful discharge of pollutants or hazardous substances,

14 the operation of a source in violation of a

15 pretreatment standard, and the failure to notify as

16 to the release of a reportable quantity of a hazard17 ous substance into the water); or

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

19 (relating to violations of laws and regulations en20 forced by the Department of Transportation with re21 spect to the transportation of hazardous material).
20

•HR 3852 EH

1 TITLE IV—LEGAL MANUFAC2 TURE, DISTRIBUTION, AND

3 SALE OF PRECURSOR CHEMI4 CALS

5 SEC. 401. DIVERSION OF CERTAIN PRECURSOR CHEMI6 CALS.

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

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

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

10 ‘‘as’’ through the semicolon and inserting ‘‘,

11 pseudoephedrine or its salts, optical isomers, or salts

12 of optical isomers, or phenylpropanolamine or its

13 salts, optical isomers, or salts of optical isomers un14 less otherwise provided by regulation of the Attorney

15 General issued pursuant to section 204(e) of this

16 title;’’; and

17 (2) in subparagraph (A)(iv)(II), by inserting ‘‘,

18 pseudoephedrine, phenylpropanolamine,’’ after

19 ‘‘ephedrine’’.

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

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

22 (1) in paragraph (39)(A)(iv)(I)(aa), by insert23 ing before the semicolon the following: ‘‘, except that

24 any sale of ordinary over-the-counter

25 pseudoephedrine, phenylpropanolamine, or combina-
21

•HR 3852 EH

1 tion ephedrine products by retail distributors shall

2 not be a regulated transaction (except as provided in

3 section 401(d) of the Comprehensive Methamphet4 amine Control Act of 1996)’’;

5 (2) in paragraph (39)(A)(iv)(II), by inserting

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

7 threshold for any sale of pseudoephedrine, phenyl8 propanolamine, or combination ephedrine products

9 by retail distributors or by distributors required to

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

11 be 24 grams of pseudoephedrine, 24 grams of phen12 ylpropanolamine, or 24 grams of ephedrine in a sin13 gle transaction’’;

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

15 felony drug offense as paragraph (44); and

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

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

18 pseudoephedrine, phenylpropanolamine, or combina19 tion ephedrine product’ means any product contain20 ing pseudoephedrine, phenylpropanolamine, or

21 ephedrine (where the ephedrine is combined with

22 therapeutically significant quantities of another ac23 tive medicinal ingredient) that is—

24 ‘‘(A) regulated pursuant to this title; and
22

•HR 3852 EH

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

2 sizes of not more than 3.0 grams of

3 pseudoephedrine base, 3.0 grams of phenyl4 propanolamine base or 2.0 grams of ephedrine

5 base, and that is packaged in blister packs,

6 each blister containing not more than two dos7 age units, or where the use of blister packs is

8 technically infeasible, that is packaged in unit

9 dose packets or pouches; and

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

11 not more than 3.0 grams of pseudoephedrine

12 base or 3.0 grams of phenylpropanolamine base.

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

14 grocery store, general merchandise store, drug store,

15 or other entity or person whose activities as a dis16 tributor relating to pseudoephedrine, phenyl17 propanolamine, or combination ephedrine products

18 are limited almost exclusively to sales for personal

19 use, both in number of sales and volume of sales, ei20 ther directly to walk-in customers or in face-to-face

21 transactions by direct sales.

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

23 personal use means the sale of below-threshold quan24 tities in a single transaction to an individual for le25 gitimate medical use.
23

•HR 3852 EH

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 ‘‘(47) The term ‘combination ephedrine prod12 uct’ means a drug product containing ephedrine or

13 its salts, optical isomers, or salts of optical isomers

14 and therapeutically significant quantities of another

15 active medicinal ingredient.’’.

16 (c) REINSTATEMENT OF LEGAL DRUG EXEMP17 TION.—Section 204 of the Controlled Substances Act (21

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

19 new subsection:

20 ‘‘(e) REINSTATEMENT OF EXEMPTION WITH RE21 SPECT TO EPHEDRINE, PSEUDOEPHEDRINE, AND PHEN22 YLPROPANOLAMINE DRUG PRODUCTS.—Pursuant to sub23 section (d)(1), the Attorney General shall by regulation

24 reinstate the exemption with respect to a particular ephed25 rine, pseudoephedrine, or phenylpropanolamine drug prod-
24

•HR 3852 EH

1 uct if the Attorney General determines that the drug prod2 uct is manufactured and distributed in a manner that pre3 vents diversion. In making this determination the Attorney

4 General shall consider the factors listed in subsection

5 (d)(2). Any regulation issued pursuant to this subsection

6 may be amended or revoked based on the factors listed

7 in subsection (d)(4).’’.

8 (d) REGULATION OF RETAIL SALES.—

9 (1) PSEUDOEPHEDRINE.—

10 (A) LIMIT.—

11 (i) IN GENERAL.—Not sooner than

12 the effective date of this section and sub13 ject to the requirements of clause (ii), the

14 Attorney General may establish by regula15 tion a single-transaction limit of 24 grams

16 of pseudoephedrine base for retail distribu17 tors. Notwithstanding any other provision

18 of law, the single-transaction threshold

19 quantity for pseudoephedrine-containing

20 compounds may not be lowered beyond

21 that established in this paragraph.

22 (ii) CONDITIONS.—In order to estab23 lish a single-transaction limit of 24 grams

24 of pseudoephedrine base, the Attorney

25 General shall determine, following notice,
25

•HR 3852 EH

1 comment, and an informal hearing that

2 since the date of the enactment of this Act

3 there are a significant number of instances

4 where ordinary over-the-counter

5 pseudoephedrine products as established in

6 paragraph (45) of section 102 of the Con7 trolled Substances Act (21 U.S.C. 802

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

9 distributors as established in paragraph

10 (46) in section 102 of the Controlled Sub11 stances Act (21 U.S.C. 802(46)), are being

12 widely used as a significant source of pre13 cursor chemicals for illegal manufacture of

14 a controlled substance for distribution or

15 sale.

16 (B) VIOLATION.—Any individual or busi17 ness that violates the thresholds established in

18 this paragraph shall, with respect to the first

19 such violation, receive a warning letter from the

20 Attorney General and, if a business, the busi21 ness shall be required to conduct mandatory

22 education of the sales employees of the firm

23 with regard to the legal sales of

24 pseudoephedrine. For a second violation occur25 ring within 2 years of the first violation, the
26

•HR 3852 EH

1 business or individual shall be subject to a civil

2 penalty of not more than $5,000. For any sub3 sequent violation occurring within 2 years of

4 the previous violation, the business or individual

5 shall be subject to a civil penalty not to exceed

6 the amount of the previous civil penalty plus

7 $5,000.

8 (2) PHENYLPROPANOLAMINE.—

9 (A) LIMIT.—

10 (i) IN GENERAL.—Not sooner than

11 the effective date of this section and sub12 ject to the requirements of clause (ii), the

13 Attorney General may establish by regula14 tion a single-transaction limit of 24 grams

15 of phenylpropanolamine base for retail dis16 tributors. Notwithstanding any other provi17 sion of law, the single-transaction thresh18 old quantity for phenylpropanolamine-con19 taining compounds may not be lowered be20 yond that established in this paragraph.

21 (ii) CONDITIONS.—In order to estab22 lish a single-transaction limit of 24 grams

23 of phenylpropanolamine base, the Attorney

24 General shall determine, following notice,

25 comment, and an informal hearing, that
27

•HR 3852 EH

1 since the date of the enactment of this Act

2 there are a significant number of instances

3 where ordinary over-the-counter phenyl4 propanolamine products as established in

5 paragraph (45) of section 102 of the Con6 trolled Substances Act (21 U.S.C.

7 802(45)), as added by this Act, sold by re8 tail distributors as established in para9 graph (46) in section 102 of the Controlled

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

11 being widely used as a significant source of

12 precursor chemicals for illegal manufacture

13 of a controlled substance for distribution

14 or sale.

15 (B) VIOLATION.—Any individual or busi16 ness that violates the thresholds established in

17 this paragraph shall, with respect to the first

18 such violation, receive a warning letter from the

19 Attorney General and, if a business, the busi20 ness shall be required to conduct mandatory

21 education of the sales employees of the firm

22 with regard to the legal sales of

23 pseudoephedrine. For a second violation occur24 ring within 2 years of the first violation, the

25 business or individual shall be subject to a civil
28

•HR 3852 EH

1 penalty of not more than $5,000. For any sub2 sequent violation occurring within 2 years of

3 the previous violation, the business or individual

4 shall be subject to a civil penalty not to exceed

5 the amount of the previous civil penalty plus

6 $5,000.

7 (3) COMBINATION EPHEDRINE PRODUCTS.—

8 (A) LIMIT.—

9 (i) IN GENERAL.—Not sooner than

10 the effective date of this section and sub11 ject to the requirements of clause (ii), the

12 Attorney General may establish by regula13 tion a single-transaction limit of 24 grams

14 of ephedrine base for retail distributors of

15 combination ephedrine products. Notwith16 standing any other provision of law, the

17 single-transaction threshold quantity for

18 combination ephedrine products may not

19 be lowered beyond that established in this

20 paragraph.

21 (ii) CONDITIONS.—In order to estab22 lish a single-transaction limit of 24 grams

23 of ephedrine base, the Attorney General

24 shall determine, following notice, comment,

25 and an informal hearing, that since the
29

•HR 3852 EH

1 date of the enactment of this Act there are

2 a significant number of instances where or3 dinary over-the-counter combination

4 ephredrine products as established in para5 graph (45) of section 102 of the Controlled

6 Substances Act (21 U.S.C. 802(45)), as

7 added by this Act, sold by retail distribu8 tors as established in paragraph (46) in

9 section 102 of the Controlled Substances

10 Act (21 U.S.C. 802(46)), are being widely

11 used as a significant source of precursor

12 chemicals for illegal manufacture of a con13 trolled substance for distribution or sale.

14 (B) VIOLATION.—Any individual or busi15 ness that violates the thresholds established in

16 this paragraph shall, with respect to the first

17 such violation, receive a warning letter from the

18 Attorney General and, if a business, the busi19 ness shall be required to conduct mandatory

20 education of the sales employees of the firm

21 with regard to the legal sales of combination

22 ephedrine products. For a second violation oc23 curring within 2 years of the first violation, the

24 business or individual shall be subject to a civil

25 penalty of not more than $5,000. For any sub-
30

•HR 3852 EH

1 sequent violation occurring within 2 years of

2 the previous violation, the business or individual

3 shall be subject to a civil penalty not to exceed

4 the amount of the previous civil penalty plus

5 $5,000.

6 (4) SIGNIFICANT NUMBER OF INSTANCES.—(A)

7 For purposes of this subsection, isolated or infre8 quent use, or use in insubstantial quantities, of ordi9 nary over-the-counter pseudoephedrine, over-the10 counter phenylpropanolamine, or over the counter

11 combination ephedrine, and sold at the retail level,

12 for the illicit manufacture of a controlled substance

13 may not be used by the Attorney General as the

14 basis for establishing the conditions for establishing

15 a single transaction limit under this section.

16 (B) In making a determination under para17 graph (1)(A)(ii), paragraph (2)(A)(ii), or paragraph

18 (3)(A)(ii), the Attorney General shall consult with

19 the Secretary of Health and Human Services in

20 order to consider the effects on public health that

21 would occur from the establishment of new single

22 transaction limits under this section.

23 (C) After making a determination under para24 graph (1)(A)(ii), paragraph (2)(A)(ii), or paragraph

25 (3)(A)(ii), the Attorney General shall transmit a re-
31

•HR 3852 EH

1 port to the Committees on the Judiciary of the

2 House of Representatives and the Senate in which

3 the Attorney General will provide the factual basis

4 for establishing the new single transaction limits

5 under this section.

6 (5) DEFINITION OF BUSINESS.—For purposes

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

8 entity that makes the direct sale and does not in9 clude the parent company of a business not involved

10 in a direct sale regulated by this subsection.

11 (6) JUDICIAL REVIEW.—Any regulation promul12 gated by the Attorney General under this section

13 shall be subject to judicial review pursuant to section

14 507 of the Controlled Substances Act (21 U.S.C.

15 877).

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

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

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

19 General to modify thresholds (including cumulative

20 thresholds) for retail distributors for products other than

21 ordinary over-the-counter pseudoephedrine, phenyl22 propanolamine, or combination ephedrine products (as de23 fined in section 102(45) of the Controlled Substances Act,

24 as added by this section) or for non-retail distributors, im25 porters, or exporters.
32

•HR 3852 EH

1 (f) EFFECTIVE DATE OF THIS SECTION.—Notwith2 standing any other provision of this Act, this section shall

3 not apply to the sale of any pseudoephedrine, phenyl4 propanolamine, or combination ephedrine product prior to

5 12 months after the date of enactment of this Act.

6 SEC. 402. MAIL ORDER RESTRICTIONS.

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

8 U.S.C. 830(b)) is amended by adding at the end the fol9 lowing:

10 ‘‘(3) MAIL ORDER REPORTING.—(A) Each regu11 lated person who engages in a transaction with a

12 nonregulated person which—

13 ‘‘(i) involves ephedrine, pseudoephedrine,

14 or phenylpropanolamine (including drug prod15 ucts containing these chemicals); and

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

17 Service or any private or commercial carrier;

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

19 such transaction conducted during the previous

20 month to the Attorney General in such form, con21 taining such data, and at such times as the Attorney

22 General shall establish by regulation.

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

24 include—

25 ‘‘(i) the name of the purchaser;
33

•HR 3852 EH

1 ‘‘(ii) the quantity and form of the ephed2 rine, pseudoephedrine, or phenylpropanolamine

3 purchased; and

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

5 pseudoephedrine, or phenylpropanolamine was

6 sent.’’.

7 TITLE V—EDUCATION AND

8 RESEARCH

9 SEC. 501. INTERAGENCY METHAMPHETAMINE TASK FORCE.

10 (a) ESTABLISHMENT.—There is established a ‘‘Meth11 amphetamine Interagency Task Force’’ (referred to as the

12 ‘‘interagency task force’’) which shall consist of the follow13 ing members:

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

15 shall serve as chair.

16 (2) 2 representatives selected by the Attorney

17 General.

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

19 (4) The Secretary of Health and Human Serv20 ices or a designee.

21 (5) 2 representatives of State and local law en22 forcement and regulatory agencies, to be selected by

23 the Attorney General.

24 (6) 2 representatives selected by the Secretary

25 of Health and Human Services.
34

•HR 3852 EH

1 (7) 5 nongovernmental experts in drug abuse

2 prevention and treatment to be selected by the At3 torney General.

4 (b) RESPONSIBILITIES.—The interagency task force

5 shall be responsible for designing, implementing, and eval6 uating the education and prevention and treatment prac7 tices and strategies of the Federal Government with re8 spect to methamphetamine and other synthetic stimulants.

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

10 meet at least once every 6 months.

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

12 interagency task force shall be paid out of existing Depart13 ment of Justice appropriations.

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

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

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

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

18 SEC. 502. PUBLIC HEALTH MONITORING.

19 The Secretary of Health and Human Services shall

20 develop a public health monitoring program to monitor

21 methamphetamine abuse in the United States. The pro22 gram shall include the collection and dissemination of data

23 related to methamphetamine abuse which can be used by

24 public health officials in policy development.
35

•HR 3852 EH

1 SEC. 503. PUBLIC-PRIVATE EDUCATION PROGRAM.

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

3 establish an advisory panel consisting of an appropriate

4 number of representatives from Federal, State, and local

5 law enforcement and regulatory agencies with experience

6 in investigating and prosecuting illegal transactions of

7 precursor chemicals. The Attorney General shall convene

8 the panel as often as necessary to develop and coordinate

9 educational programs for wholesale and retail distributors

10 of precursor chemicals and supplies.

11 (b) CONTINUATION OF CURRENT EFFORTS.—The

12 Attorney General shall continue to—

13 (1) maintain an active program of seminars and

14 training to educate wholesale and retail distributors

15 of precursor chemicals and supplies regarding the

16 identification of suspicious transactions and their re17 sponsibility to report such transactions; and

18 (2) provide assistance to State and local law en19 forcement and regulatory agencies to facilitate the

20 establishment and maintenance of educational pro21 grams for distributors of precursor chemicals and

22 supplies.

23 SEC. 504. SUSPICIOUS ORDERS TASK FORCE.

24 (a) IN GENERAL.—The Attorney General shall estab25 lish a ‘‘Suspicious Orders Task Force’’ (the ‘‘Task

26 Force’’) which shall consist of—
36

•HR 3852 EH

1 (1) appropriate personnel from the Drug En2 forcement Administration (the ‘‘DEA’’) and other

3 Federal, State, and local law enforcement and regu4 latory agencies with the experience in investigating

5 and prosecuting illegal transactions of listed chemi6 cals and supplies; and

7 (2) representatives from the chemical and phar8 maceutical industry, including representatives from

9 the DEA/Distributor Working Committee and the

10 DEA/Pharmacy Working Committee.

11 (b) RESPONSIBILITIES.—The Task Force shall be re12 sponsible for developing proposals to define suspicious or13 ders of listed chemicals, and particularly to develop quan14 tifiable parameters which can be used by registrants in

15 determining if an order is a suspicious order which must

16 be reported to DEA. The quantifiable parameters to be

17 addressed will include frequency of orders, deviations from

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

19 recommend provisions as to what types of payment prac20 tices or unusual business practices shall constitute prima

21 facie suspicious orders. In evaluating the proposals, the

22 Task Force shall consider effectiveness, cost and feasibil23 ity for industry and Government, an other relevant fac24 tors.
37

•HR 3852 EH

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

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

3 determined necessary by the Task Force.

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

5 to the Attorney General on its proposals with regard to

6 suspicious orders and the electronic reporting of sus7 picious orders within one year of the date of enactment

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

9 Committees of the Senate and House of Representatives

10 having jurisdiction over the regulation of listed chemical

11 and controlled substances.

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

13 Task Force shall be paid out of existing Department of

14 Justice funds or appropriations.

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

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

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

18 upon presentation of its report to the Attorney General,

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

20 whichever is sooner.

Passed the House of Representatives September 26,

1996.

Attest:

Clerk.