I

104TH CONGRESS

2D SESSION H. R. 3852

To prevent the illegal manufacturing and use of methamphetamine.

IN THE HOUSE OF REPRESENTATIVES

JULY 18, 1996

Mr. HEINEMAN introduced the following bill; which was referred to the Committee on the Judiciary, and in addition to the Committee on Commerce,

for a period to be subsequently determined by the Speaker, in each case

for consideration of such provisions as fall within the jurisdiction of the

committee concerned

A BILL

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’’.

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

7 this Act is as follows:

Sec. 1. Short title and table of contents.

Sec. 2. Findings.

TITLE I—IMPORTATION OF METHAMPHETAMINE AND

PRECURSOR CHEMICALS
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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.

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.

1 SEC. 2. FINDINGS.

2 The Congress finds the following:

3 (1) Methamphetamine is a very dangerous and

4 harmful drug. It is highly addictive and is associated

5 with permanent brain damage in long-term users.

6 (2) The abuse of methamphetamine has in7 creased dramatically since 1990. This increased use
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1 has led to devastating effects on individuals and the

2 community, including—

3 (A) a dramatic increase in deaths associ4 ated with methamphetamine ingestion;

5 (B) an increase in the number of violent

6 crimes associated with methamphetamine inges7 tion; and

8 (C) an increase in criminal activity associ9 ated with the illegal importation of meth10 amphetamine and precursor compounds to sup11 port the growing appetite for this drug in the

12 United States.

13 (3) Illegal methamphetamine manufacture and

14 abuse presents an imminent public health threat

15 that warrants aggressive law enforcement action, in16 creased research on methamphetamine and other

17 substance abuse, increased coordinated efforts to

18 prevent methamphetamine abuse, and increased

19 monitoring of the public health threat methamphet20 amine presents to the communities of the United

21 States.
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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.
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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
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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
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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—
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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 legitimate, legal

6 purposes, and the impact any regulations may have

7 on these legitimate purposes; and

8 (3) comments and recommendations from law

9 enforcement, manufacturers of such chemicals, and

10 the consumers of such chemicals for legitimate, legal

11 purposes.

12 SEC. 203. INCREASED PENALTIES FOR MANUFACTURE AND

13 POSSESSION OF EQUIPMENT USED TO MAKE

14 CONTROLLED SUBSTANCES.

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

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

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

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

19 person’’; and

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

21 ‘‘(2) Any person who, with the intent to manufacture

22 or facilitate to manufacture methamphetamine, violates

23 paragraph (6) or (7) of subsection (a), shall be sentenced

24 to a term of imprisonment of not more than 10 years,

25 a fine of not more than $30,000, or both; except that if
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1 any person commits such a violation after one or more

2 prior convictions 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 of not

12 more than $60,000, 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 treated as a

18 significant violation.

19 SEC. 204. ADDITION OF IODINE AND HYDROCHLORIC GAS

20 TO LIST II.

21 (a) IN GENERAL.—Section 102(35) of the Controlled

22 Substances Act (21 U.S.C. 802(35)) is amended by adding

23 the end the following:

24 ‘‘(I) Iodine.

25 ‘‘(J) Hydrochloric gas.’’.
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1 (b) IMPORTATION REQUIREMENTS.—(1) Iodine shall

2 not be subject to the requirements for listed chemicals pro3 vided in section 1018 of the Controlled Substances Import

4 and Export Act (21 U.S.C. 971).

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

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

7 General to impose the requirements for listed chemicals

8 provided in section 1018 of the Controlled Substances Im9 port and Export Act (21 U.S.C. 971).

10 SEC. 205. CIVIL PENALTIES FOR FIRMS THAT SUPPLY PRE11 CURSOR CHEMICALS.

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

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

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

15 semicolon;

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

17 and inserting ‘‘; or’’; and

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

19 ‘‘(11) to distribute a laboratory supply to a per20 son who uses, or attempts to use, that laboratory

21 supply to manufacture a controlled substance or a

22 listed chemical, in violation of this title or title III,

23 with reckless disregard for the illegal uses to which

24 such a laboratory supply will be put.
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1 As used in paragraph (11), the term ‘laboratory supply’

2 means a listed chemical or any chemical, substance, or

3 item, on a special surveillance list published by the Attor4 ney General, which contains chemicals, products, mate5 rials, or equipment used in the manufacture of controlled

6 substances and listed chemicals. For purposes of para7 graph (11), there is a rebuttable presumption of reckless

8 disregard at trial if a firm distributes or continues to dis9 tribute a laboratory supply to a customer where the Attor10 ney General has previously notified, at least two weeks be11 fore the transaction(s), the firm that a laboratory supply

12 sold by the firm, or any other person or firm, has been

13 used by that customer, or distributed further by that cus14 tomer, for the unlawful production of controlled sub15 stances or listed chemicals.’’

16 (b) CIVIL PENALTY.—Section 402(c)(2) of the Con17 trolled Substances Act (21 U.S.C. 842(c)(2)) is amended

18 by adding at the end the following:

19 ‘‘(C) In addition to the penalties set forth else20 where in this title or title III, any business that vio21 lates paragraph (11) of subsection (a) shall, with re22 spect to the first such violation, be subject to a civil

23 penalty of not more than $250,000, but shall not be

24 subject to criminal penalties under this section, and

25 shall, for any succeeding violation, be subject to a
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1 civil fine of not more than $250,000 or double the

2 last previously imposed penalty, whichever is great3 er.’’.

4 SEC. 206. INJUNCTIVE RELIEF.

5 (a) TEN-YEAR INJUNCTION MAJOR OFFENSES.—

6 Section 401(f) of the Controlled Substances Act (21

7 U.S.C. 841(f)) is amended by—

8 (1) inserting ‘‘manufacture, exportation,’’ after

9 ‘‘distribution,’’; and

10 (2) striking ‘‘regulated’’.

11 (b) TEN-YEAR INJUNCTION OTHER OFFENSES.—

12 Section 403 of the Controlled Substances Act (21 U.S.C.

13 843) is amended—

14 (1) in subsection (e), by—

15 (A) inserting ‘‘manufacture, exportation,’’

16 after ‘‘distribution,’’; and

17 (B) striking ‘‘regulated’’; and

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

19 ‘‘(f) INJUNCTIONS.—(1) In addition to any penalty

20 provided in this section, the Attorney General is author21 ized to commence a civil action for appropriate declaratory

22 or injunctive relief relating to violations of this section or

23 section 402.

24 ‘‘(2) Any action under this subsection may be

25 brought in the district court of the United States for the
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1 district in which the defendant is located or resides or is

2 doing business.

3 ‘‘(3) Any order or judgment issued by the court pur4 suant to this subsection shall be tailored to restrain viola5 tions of this section or section 402.

6 ‘‘(4) The court shall proceed as soon as practicable

7 to the hearing and determination of such an action. An

8 action under this subsection is governed by the Federal

9 Rules of Civil Procedure except that, if an indictment has

10 been returned against the respondent, discovery is gov11 erned by the Federal Rules of Criminal Procedure.’’.

12 SEC. 207. RESTITUTION FOR CLEANUP OF CLANDESTINE

13 LABORATORY SITES.

14 Section 413 of the Controlled Substances Act (21

15 U.S.C. 853) is amended by adding at the end the follow16 ing:

17 ‘‘(q) The court, when sentencing a defendant con18 victed of an offense under this title or title III involving

19 the manufacture of methamphetamine, may—

20 ‘‘(1) order restitution as provided in sections

21 3612 and 3664 of title 18, United States Code;

22 ‘‘(2) order the defendant to reimburse the Unit23 ed States for the costs incurred by the United States

24 for the cleanup associated with the manufacture of

25 methamphetamine by the defendant; and
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1 ‘‘(3) order restitution to any person injured as

2 a result of the offense as provided in section 3663

3 of title 18, United States Code.’’.

4 SEC. 208. RECORD RETENTION.

5 Section 310(a)(1) of the Controlled Substances Act

6 (21 U.S.C. 830(a)(1)) is amended by striking the dash

7 after ‘‘transaction’’ and subparagraphs (A) and (B) and

8 inserting ‘‘for two years after the date of the trans9 action.’’.

10 SEC. 209. TECHNICAL AMENDMENTS.

11 Section 102 of the Controlled Substances Act (21

12 U.S.C. 802) is amended—

13 (1) in paragraph (34), by amending subpara14 graphs (P), (S), and (U) to read as follows:

15 ‘‘(P) Iso safrole.

16 ‘‘(S) N-Methylephedrine.

17 ‘‘(U) Hydriodic acid.’’; and

18 (2) in paragraph (35), by amending subpara19 graph (G) to read as follows:

20 ‘‘(G) 2-Butanone (or Methyl Ethyl Ke21 tone).’’.
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1 TITLE III—INCREASED PEN2 ALTIES FOR TRAFFICKING

3 AND MANUFACTURE OF

4 METHAMPHETAMINE AND

5 PRECURSORS

6 SEC. 301. TRAFFICKING IN METHAMPHETAMINE PENALTY

7 INCREASES.

8 (a) CONTROLLED SUBSTANCES ACT.—

9 (1) LARGE AMOUNTS.—Section

10 401(b)(1)(A)(viii) of the Controlled Substances Act

11 (21 U.S.C. 841(b)(1)(A)(viii)) is amended by—

12 (A) striking ‘‘100 grams or more of meth13 amphetamine,’’ and inserting ‘‘50 grams or

14 more of methamphetamine,’’; and

15 (B) striking ‘‘1 kilogram or more of a mix16 ture or substance containing a detectable

17 amount of methamphetamine’’ and inserting

18 ‘‘500 grams or more of a mixture or substance

19 containing a detectable amount of methamphet20 amine’’.

21 (2) SMALLER AMOUNTS.—Section

22 401(b)(1)(B)(viii) of the Controlled Substances Act

23 (21 U.S.C. 841(b)(1)(B)(viii)) is amended by—
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1 (A) striking ‘‘10 grams or more of meth2 amphetamine,’’ and inserting ‘‘5 grams or more

3 of methamphetamine,’’; and

4 (B) striking ‘‘100 grams or more of a mix5 ture or substance containing a detectable

6 amount of methamphetamine’’ and inserting

7 ‘‘50 grams or more of a mixture or substance

8 containing a detectable amount of methamphet9 amine’’.

10 (b) IMPORT AND EXPORT ACT.—

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

12 of the Controlled Substances Import and Export Act

13 (21 U.S.C. 960(b)(1)(H)) is amended by—

14 (A) striking ‘‘100 grams or more of meth15 amphetamine,’’ and inserting ‘‘50 grams or

16 more of methamphetamine,’’; and

17 (B) striking ‘‘1 kilogram or more of a mix18 ture or substance containing a detectable

19 amount of methamphetamine’’ and inserting

20 ‘‘500 grams or more of a mixture or substance

21 containing a detectable amount of methamphet22 amine’’.

23 (2) SMALLER AMOUNTS.—Section

24 1010(b)(2)(H) of the Controlled Substances Import
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1 and Export Act (21 U.S.C. 960(b)(2)(H)) is amend2 ed by—

3 (A) striking ‘‘10 grams or more of meth4 amphetamine,’’ and inserting ‘‘5 grams or more

5 of methamphetamine,’’; and

6 (B) striking ‘‘100 grams or more of a mix7 ture or substance containing a detectable

8 amount of methamphetamine’’ and inserting

9 ‘‘50 grams or more of a mixture or substance

10 containing a detectable amount of methamphet11 amine’’.

12 SEC. 302. PENALTY INCREASES FOR TRAFFICKING IN LIST13 ED CHEMICALS.

14 (a) CONTROLLED SUBSTANCES ACT.—Section

15 401(d) of the Controlled Substances Act (21 U.S.C.

16 841(d)) is amended by striking the period and inserting

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

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

19 if the government proves the quantity of controlled sub20 stance that could reasonably have been manufactured in

21 a clandestine setting using the quantity of list I chemicals

22 possessed or distributed, the penalty corresponding to the

23 quantity of controlled substance that could have been pro24 duced under subsection (b).’’.
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1 (b) CONTROLLED SUBSTANCE IMPORT AND EXPORT

2 ACT.—Section 1010(d) of the Controlled Substance Im3 port and Export Act (21 U.S.C. 960(d)) is amended by

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

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

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

7 government proves the quantity of controlled substance

8 that could reasonably have been manufactured in a clan9 destine setting using the quantity of list I chemicals im10 ported, the penalty corresponding to the quantity of con11 trolled substance that could have been produced under

12 title II.’’.

13 (c) DETERMINATION OF QUANTITY.—

14 (1) IN GENERAL.—For the purposes of this sec15 tion and the amendments made by this section, the

16 quantity of controlled substance that could reason17 ably have been provided shall be determined by

18 using a table of manufacturing conversion ratios for

19 list I chemicals.

20 (2) TABLE.—The table shall be—

21 (1) established by the United States Sen22 tencing Commission based on scientific, law en23 forcement, and other data the Sentencing Com24 mission deems appropriate; and

25 (2) dispositive of this issue.
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1 SEC. 303. ENHANCED PENALTY FOR DANGEROUS HAN2 DLING OF CONTROLLED SUBSTANCES:

3 AMENDMENT OF SENTENCING GUIDELINES.

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

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

6 States Sentencing Commission shall determine whether

7 the Sentencing Guidelines adequately punish the offenses

8 described in subsection (b) and, if not, promulgate guide9 lines or amend existing guidelines to provide an appro10 priate enhancement of the punishment for a defendant

11 convicted of such an offense.

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

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

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

15 841(d), 841(g)(1), 843(a)(6), and 843(a)(7)), in cases in

16 which in the commission of the offense the defendant vio17 lated—

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

19 Solid Waste Disposal Act (relating to handling haz20 ardous waste in a manner inconsistent with Federal

21 or applicable State law);

22 (2) section 103(b) of the Comprehensive Envi23 ronmental Response, Compensation and Liability

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

25 a reportable quantity of a hazardous substance into

26 the environment);
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1 (3) section 301(a), 307(d), 309(c)(2),

2 309(c)(3), 311(b)(3), or 311(b)(5) of the Federal

3 Water Pollution Control Act (relating to the unlaw4 ful discharge of pollutants or hazardous substances,

5 the operation of a source in violation of a

6 pretreatment standard, and the failure to notify as

7 to the release of a reportable quantity of a hazard8 ous substance into the water); or

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

10 (relating to violations of laws and regulations en11 forced by the Department of Transportation with re12 spect to the transportation of hazardous material).

13 TITLE IV—LEGAL MANUFAC14 TURE, DISTRIBUTION, AND

15 SALE OF PRECURSOR CHEMI16 CALS

17 SEC. 401. DIVERSION OF CERTAIN PRECURSOR CHEMI18 CALS.

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

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

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

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

23 pseudoephedrine or its salts, optical isomers, or salts

24 of optical isomers, or phenylpropanolamine or its

25 salts, optical isomers, or salts of optical isomers un-
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1 less otherwise provided by regulation of the Attorney

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

3 title;’’; and

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

5 pseudoephedrine, phenylpropanolamine,’’ after

6 ‘‘ephedrine’’.

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

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

9 (1) in paragraph (39)(A)(iv)(I)(aa), by adding

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

11 any sale of ordinary over-the-counter

12 pseudoephedrine or phenylpropanolamine products

13 by retail distributors shall not be a regulated trans14 action (except as provided in section 401(d) of the

15 Comprehensive Methamphetamine Control Act of

16 1996)’’;

17 (2) in paragraph (39)(A)(iv)(II), by adding be18 fore the semicolon the following: ‘‘, except that any

19 sale of products containing pseudoephedrine or

20 phenylpropanolamine, other than ordinary over-the21 counter pseudoephedrine or phenylpropanolamine

22 products, by retail distributors shall not be a regu23 lated transaction if the distributor’s sales are limited

24 to less than the threshold quantity of 24 grams of
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1 pseudoephedrine or 24 grams of phenylpropanola2 mine in each single transaction’’;

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

4 felony drug abuse as paragraph (44); and

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

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

7 pseudoephedrine or phenylpropanolamine product’

8 means any product containing pseudoephedrine or

9 phenylpropanolamine that is—

10 ‘‘(A) regulated pursuant to this title; and

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

12 sizes of not more than 3.0 grams of

13 pseudoephedrine base or 3.0 grams of phenyl14 propanolamine base, and that is packaged in

15 blister packs, each blister containing not more

16 than two dosage units, or where the use of blis17 ter packs is technically infeasible, that is

18 packaged in unit dose packets or pouches; and

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

20 not more than 3.0 grams of pseudoephedrine

21 base or 3.0 grams of phenylpropanolamine base.

22 ‘‘(46)(A) The term ‘retail distributor’ means—

23 ‘‘(i) with respect to an entity that is a gro24 cery store, general merchandise store, or drug

25 store, a distributor whose activities relating to
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1 pseudoephedrine or phenylpropanolamine prod2 ucts are limited almost exclusively to sales, both

3 in number of sales and volume of sales, directly

4 to walk-in customers; and

5 ‘‘(ii) with respect to any other entity, a

6 distributor whose activities relating to ordinary

7 over-the-counter pseudoephedrine or phenyl8 propanolamine products are limited primarily to

9 sales directly to walk-in customers for personal

10 use.

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

12 personal use means the sale of below-threshold quan13 tities in a single transaction to an individual for le14 gitimate medical use.

15 ‘‘(C) For purposes of this paragraph, entities

16 are defined by reference to the Standard Industrial

17 Classification (SIC) code, as follows:

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

19 code 5411.

20 ‘‘(ii) A general merchandise store is an en21 tity within SIC codes 5300 through 5399 and

22 5499.

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

24 code 5912.’’.
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1 (c) REINSTATEMENT OF LEGAL DRUG EXEMP2 TION.—Section 204 of the Controlled Substances Act (21

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

4 new subsection:

5 ‘‘(e) REINSTATEMENT OF EXEMPTION WITH RE6 SPECT TO EPHEDRINE, PSEUDOEPHEDRINE, AND PHEN7 YLPROPANOLAMINE DRUG PRODUCTS.—The Attorney

8 General shall by regulation reinstate the exemption with

9 respect to a particular ephedrine, pseudoephedrine, or

10 phenylpropanolamine drug product if the Attorney Gen11 eral determines that the drug product is manufactured

12 and distributed in a manner that prevents diversion. In

13 making this determination the Attorney General shall con14 sider the factors listed in subsection (d)(2). Any regulation

15 issued pursuant to this subsection may be amended or re16 voked based on the factors listed in subsection (d)(4).’’.

17 (d) REGULATION OF RETAIL SALES.—

18 (1) PSEUDOEPHEDRINE.—

19 (A) LIMIT.—

20 (i) IN GENERAL.—Not sooner than

21 the effective date of this section and sub22 ject to the requirements of clause (ii), the

23 Attorney General may establish by regula24 tion a single-transaction limit of 24 grams

25 of pseudoephedrine base for retail distribu-
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1 tors. Notwithstanding any other provision

2 of law, the single-transaction threshold

3 quantity for pseudoephedrine-containing

4 compounds may not be lowered beyond

5 that established in this paragraph.

6 (ii) CONDITIONS.—In order to estab7 lish a single-transaction limit of 24 grams

8 of pseudoephedrine base, the Attorney

9 General shall establish, following notice,

10 comment, and an informal hearing that

11 since the effective date of this section there

12 are a significant number of instances

13 where ordinary over-the-counter

14 pseudoephedrine products as established in

15 paragraph (45) of section 102 of the Con16 trolled Substances Act (21 U.S.C. 802

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

18 distributors as established in paragraph

19 (46) in section 102 of the Controlled Sub20 stances Act (21 U.S.C. 802(46)), are being

21 used as a significant source of precursor

22 chemicals for illegal manufacture of a con23 trolled substance in bulk.

24 (B) VIOLATION.—Any individual or busi25 ness that violates the thresholds established in
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•HR 3852 IH

1 this paragraph shall, with respect to the first

2 such violation, receive a warning letter from the

3 Attorney General and, if a business, the busi4 ness shall be required to conduct mandatory

5 education of the sales employees of the firm

6 with regard to the legal sales of

7 pseudoephedrine. For a second violation occur8 ring within 2 years of the first violation, the

9 business or individual shall be subject to a civil

10 penalty of not more than $5,000. For any sub11 sequent violation occurring within 2 years of

12 the previous violation, the business or individual

13 shall be subject to a civil penalty not to exceed

14 the amount of the previous civil penalty plus

15 $5,000.

16 (2) PHENYLPROPANOLAMINE.—

17 (A) LIMIT.—

18 (i) IN GENERAL.—Not sooner than

19 the effective date of this section and sub20 ject to the requirements of clause (ii), the

21 Attorney General may establish by regula22 tion a single-transaction limit of 24 grams

23 of phenylpropanolamine base for retail dis24 tributors. Notwithstanding any other provi25 sion of law, the single-transaction thresh-
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•HR 3852 IH

1 old quantity for phenylpropanolamine-con2 taining compounds may not be lowered be3 yond that established in this paragraph.

4 (ii) CONDITIONS.—In order to estab5 lish a single-transaction limit of 24 grams

6 of phenylpropanolamine base, the Attorney

7 General shall establish, following notice,

8 comment, and an informal hearing, that

9 since the effective date of this section there

10 are a significant number of instances

11 where ordinary over-the-counter phenyl12 propanolamine products as established in

13 paragraph (45) of section 102 of the Con14 trolled Substances Act (21 U.S.C.

15 802(45)), as added by this Act, sold by re16 tail distributors as established in para17 graph (46) in section 102 of the Controlled

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

19 being used as a significant source of pre20 cursor chemicals for illegal manufacture of

21 a controlled substance in bulk.

22 (B) VIOLATION.—Any individual or busi23 ness that violates the thresholds established in

24 this paragraph shall, with respect to the first

25 such violation, receive a warning letter from the
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•HR 3852 IH

1 Attorney General and, if a business, the busi2 ness shall be required to conduct mandatory

3 education of the sales employees of the firm

4 with regard to the legal sales of

5 pseudoephedrine. For a second violation occur6 ring within 2 years of the first violation, the

7 business or individual shall be subject to a civil

8 penalty of not more than $5,000. For any sub9 sequent violation occurring within 2 years of

10 the previous violation, the business or individual

11 shall be subject to a civil penalty not to exceed

12 the amount of the previous civil penalty plus

13 $5,000.

14 (3) DEFINITION OF BUSINESS.—For purposes

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

16 entity that makes the direct sale and does not in17 clude the parent company of a business not involved

18 in a direct sale regulated by this subsection.

19 (4) JUDICIAL REVIEW.—Any regulation promul20 gated by the Attorney General under this section

21 shall be subject to judicial review pursuant to section

22 507 of the Controlled Substances Act (21 U.S.C.

23 877).

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

25 amendments made by subsection (b) or the provisions of
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•HR 3852 IH

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

2 General to modify thresholds (including cumulative

3 thresholds) for retail distributors for products other than

4 ordinary over-the-counter pseudoephedrine or phenyl5 propanolamine products (as defined in section 102(45) of

6 the Controlled Substances Act, as added by this section)

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

8 (f) EFFECTIVE DATE OF THIS SECTION.—Notwith9 standing any other provision of this Act, this section shall

10 not apply to the sale of any over-the-counter

11 pseudoephedrine or phenylpropanolamine product initially

12 introduced into interstate commerce prior to 9 months

13 after the date of enactment of this Act.

14 SEC. 402. MAIL ORDER RESTRICTIONS.

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

16 U.S.C. 830(b)) is amended by adding at the end the fol17 lowing:

18 ‘‘(3) MAIL ORDER REPORTING.—(A) Each regu19 lated person who engages in a transaction with a

20 nonregulated person which—

21 ‘‘(i) involves ephedrine, pseudoephedrine,

22 or phenylpropanolamine (including drug prod23 ucts containing these chemicals); and

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

25 Service or any private or commercial carrier;
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•HR 3852 IH

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

2 such transaction conducted during the previous

3 month to the Attorney General in such form, con4 taining such data, and at such times as the Attorney

5 General shall establish by regulation.

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

7 include—

8 ‘‘(i) the name of the purchaser;

9 ‘‘(ii) the quantity and form of the ephed10 rine, pseudoephedrine, or phenylpropanolamine

11 purchased; and

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

13 pseudoephedrine, or phenylpropanolamine was

14 sent.’’.

15 TITLE V—EDUCATION AND

16 RESEARCH

17 SEC. 501. INTERAGENCY METHAMPHETAMINE TASK FORCE.

18 (a) ESTABLISHMENT.—There is established a ‘‘Meth19 amphetamine Interagency Task Force’’ (referred to as the

20 ‘‘interagency task force’’) which shall consist of the follow21 ing members:

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

23 shall serve as chair.

24 (2) 2 representatives selected by the Attorney

25 General.
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•HR 3852 IH

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

2 (4) The Secretary of Health and Human Serv3 ices or a designee.

4 (5) 2 representatives of State and local law en5 forcement and regulatory agencies, to be selected by

6 the Attorney General.

7 (6) 2 representatives selected by the Secretary

8 of Health and Human Services.

9 (7) 5 nongovernmental experts in drug abuse

10 prevention and treatment to be selected by the At11 torney General.

12 (b) RESPONSIBILITIES.—The interagency task force

13 shall be responsible for designing, implementing, and eval14 uating the education and prevention and treatment prac15 tices and strategies of the Federal Government with re16 spect to methamphetamine and other synthetic stimulants.

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

18 meet at least once every 6 months.

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

20 interagency task force shall be paid out of existing Depart21 ment of Justice appropriations.

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

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

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

25 terminate 4 years after the date of enactment of this Act.
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•HR 3852 IH

1 SEC. 502. PUBLIC HEALTH MONITORING.

2 The Secretary of Health and Human Services shall

3 develop a public health monitoring program to monitor

4 methamphetamine abuse in the United States. The pro5 gram shall include the collection and dissemination of data

6 related to methamphetamine abuse which can be used by

7 public health officials in policy development.

8 SEC. 503. PUBLIC-PRIVATE EDUCATION PROGRAM.

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

10 establish an advisory panel consisting of an appropriate

11 number of representatives from Federal, State, and local

12 law enforcement and regulatory agencies with experience

13 in investigating and prosecuting illegal transactions of

14 precursor chemicals. The Attorney General shall convene

15 the panel as often as necessary to develop and coordinate

16 educational programs for wholesale and retail distributors

17 of precursor chemicals and supplies.

18 (b) CONTINUATION OF CURRENT EFFORTS.—The

19 Attorney General shall continue to—

20 (1) maintain an active program of seminars and

21 training to educate wholesale and retail distributors

22 of precursor chemicals and supplies regarding the

23 identification of suspicious transactions and their re24 sponsibility to report such transactions; and

25 (2) provide assistance to State and local law en26 forcement and regulatory agencies to facilitate the
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•HR 3852 IH

1 establishment and maintenance of educational pro2 grams for distributors of precursor chemicals and

3 supplies.

4 SEC. 504. SUSPICIOUS ORDERS TASK FORCE.

5 (a) IN GENERAL.—The Attorney General shall estab6 lish a ‘‘Suspicious Orders Task Force’’ (the ‘‘Task

7 Force’’) which shall consist of—

8 (1) appropriate personnel from the Drug En9 forcement Administration (the ‘‘DEA’’) and other

10 Federal, State, and local law enforcement and regu11 latory agencies with the experience in investigating

12 and prosecuting illegal transactions of listed chemi13 cals and supplies; and

14 (2) representatives from the chemical and phar15 maceutical industry.

16 (b) RESPONSIBILITIES.—The Task Force shall be re17 sponsible for developing proposals to define suspicious or18 ders of listed chemicals, and particularly to develop quan19 tifiable parameters which can be used by registrants in

20 determining if an order is a suspicious order which must

21 be reported to DEA. The quantifiable parameters to be

22 addressed will include frequency of orders, deviations from

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

24 recommend provisions as to what types of payment prac25 tices or unusual business practices shall constitute prima
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•HR 3852 IH

1 facie suspicious orders. In evaluating the proposals, the

2 Task Force shall consider effectiveness, cost and feasibil3 ity for industry and government, an other relevant factors.

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

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

6 determined necessary by the Task Force.

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

8 to the Attorney General on its proposals with regard to

9 suspicious orders and the electronic reporting of sus10 picious orders within one year of the date of enactment

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

12 Committees of the Senate and House of Representatives

13 having jurisdiction over the regulation of listed chemical

14 and controlled substances.

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

16 Task Force shall be paid out of existing Department of

17 Justice funds.

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

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

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

21 upon presentation of its report to the Attorney General,

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

23 whichever is sooner.

Æ