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tion ephedrine products by retail distributors shall
not be a regulated transaction (except as provided in
section 401(d) of the Comprehensive Methamphet-
amine Control Act of 1996)’’;
(2) in paragraph (39)(A)(iv)(II), by inserting
before the semicolon the following: ‘‘, except that the
threshold for any sale of pseudoephedrine, phenyl-
propanolamine, or combination ephedrine products
by retail distributors or by distributors required to
submit reports by section 310(b)(3) of this title shall
be 24 grams of pseudoephedrine, 24 grams of phen-
ylpropanolamine, or 24 grams of ephedrine in a sin-
gle transaction’’;
(3) by redesignating paragraph (43) relating to
felony drug offense as paragraph (44); and
(4) by adding at the end the following:
‘‘(45) The term ‘ordinary over-the-counter
pseudoephedrine, phenylpropanolamine, or combina-
tion ephedrine product’ means any product contain-
ing 
pseudoephedrine, 
phenylpropanolamine, 
or
ephedrine (where the ephedrine is combined with
therapeutically significant quantities of another ac-
tive medicinal ingredient) that is—
‘‘(A) regulated pursuant to this title; and
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‘‘(B)(i) except for liquids, sold in package
sizes 
of 
not 
more 
than 
3.0 
grams 
of
pseudoephedrine base, 3.0 grams of phenyl-
propanolamine base or 2.0 grams of ephedrine
base, and that is packaged in blister packs,
each blister containing not more than two dos-
age units, or where the use of blister packs is
technically infeasible, that is packaged in unit
dose packets or pouches; and
‘‘(ii) for liquids, sold in package sizes of
not more than 3.0 grams of pseudoephedrine
base or 3.0 grams of phenylpropanolamine base.
‘‘(46)(A) The term ‘retail distributor’ means a
grocery store, general merchandise store, drug store,
or other entity or person whose activities as a dis-
tributor 
relating 
to 
pseudoephedrine, 
phenyl-
propanolamine, or combination ephedrine products
are limited almost exclusively to sales for personal
use, both in number of sales and volume of sales, ei-
ther directly to walk-in customers or in face-to-face
transactions by direct sales.
‘‘(B) For purposes of this paragraph, sale for
personal use means the sale of below-threshold quan-
tities in a single transaction to an individual for le-
gitimate medical use.
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‘‘(C) For purposes of this paragraph, entities
are defined by reference to the Standard Industrial
Classification (SIC) code, as follows:
‘‘(i) A grocery store is an entity within SIC
code 5411.
‘‘(ii) A general merchandise store is an en-
tity within SIC codes 5300 through 5399 and
5499.
‘‘(iii) A drug store is an entity within SIC
code 5912.
‘‘(47) The term ‘combination ephedrine prod-
uct’ means a drug product containing ephedrine or
its salts, optical isomers, or salts of optical isomers
and therapeutically significant quantities of another
active medicinal ingredient.’’.
(c) REINSTATEMENT
OF
LEGAL
DRUG
EXEMP-
TION.—Section 204 of the Controlled Substances Act (21
U.S.C. 814) is amended by adding at the end the following
new subsection:
‘‘(e) REINSTATEMENT
OF EXEMPTION WITH RE-
SPECT TO EPHEDRINE, PSEUDOEPHEDRINE, AND PHEN-
YLPROPANOLAMINE DRUG PRODUCTS.—Pursuant to sub-
section (d)(1), the Attorney General shall by regulation
reinstate the exemption with respect to a particular ephed-
rine, pseudoephedrine, or phenylpropanolamine drug prod-
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uct if the Attorney General determines that the drug prod-
uct is manufactured and distributed in a manner that pre-
vents diversion. In making this determination the Attorney
General shall consider the factors listed in subsection
(d)(2). Any regulation issued pursuant to this subsection
may be amended or revoked based on the factors listed
in subsection (d)(4).’’.
(d) REGULATION OF RETAIL SALES.—
(1) PSEUDOEPHEDRINE.—
(A) LIMIT.—
(i) IN
GENERAL.—Not sooner than
the effective date of this section and sub-
ject to the requirements of clause (ii), the
Attorney General may establish by regula-
tion a single-transaction limit of 24 grams
of pseudoephedrine base for retail distribu-
tors. Notwithstanding any other provision
of law, the single-transaction threshold
quantity for pseudoephedrine-containing
compounds may not be lowered beyond
that established in this paragraph.
(ii) CONDITIONS.—In order to estab-
lish a single-transaction limit of 24 grams
of pseudoephedrine base, the Attorney
General shall determine, following notice,
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comment, and an informal hearing that
since the date of the enactment of this Act
there are a significant number of instances
where 
ordinary 
over-the-counter
pseudoephedrine products as established in
paragraph (45) of section 102 of the Con-
trolled Substances Act (21 U.S.C. 802
(45)), as added by this Act, sold by retail
distributors as established in paragraph
(46) in section 102 of the Controlled Sub-
stances Act (21 U.S.C. 802(46)), are being
widely used as a significant source of pre-
cursor chemicals for illegal manufacture of
a controlled substance for distribution or
sale.
(B) VIOLATION.—Any individual or busi-
ness that violates the thresholds established in
this paragraph shall, with respect to the first
such violation, receive a warning letter from the
Attorney General and, if a business, the busi-
ness shall be required to conduct mandatory
education of the sales employees of the firm
with 
regard 
to 
the 
legal 
sales 
of
pseudoephedrine. For a second violation occur-
ring within 2 years of the first violation, the
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business or individual shall be subject to a civil
penalty of not more than $5,000. For any sub-
sequent violation occurring within 2 years of
the previous violation, the business or individual
shall be subject to a civil penalty not to exceed
the amount of the previous civil penalty plus
$5,000.
(2) PHENYLPROPANOLAMINE.—
(A) LIMIT.—
(i) IN
GENERAL.—Not sooner than
the effective date of this section and sub-
ject to the requirements of clause (ii), the
Attorney General may establish by regula-
tion a single-transaction limit of 24 grams
of phenylpropanolamine base for retail dis-
tributors. Notwithstanding any other provi-
sion of law, the single-transaction thresh-
old quantity for phenylpropanolamine-con-
taining compounds may not be lowered be-
yond that established in this paragraph.
(ii) CONDITIONS.—In order to estab-
lish a single-transaction limit of 24 grams
of phenylpropanolamine base, the Attorney
General shall determine, following notice,
comment, and an informal hearing, that
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since the date of the enactment of this Act
there are a significant number of instances
where ordinary over-the-counter phenyl-
propanolamine products as established in
paragraph (45) of section 102 of the Con-
trolled 
Substances 
Act 
(21 
U.S.C.
802(45)), as added by this Act, sold by re-
tail distributors as established in para-
graph (46) in section 102 of the Controlled
Substances Act (21 U.S.C. 802(46)), are
being widely used as a significant source of
precursor chemicals for illegal manufacture
of a controlled substance for distribution
or sale.
(B) VIOLATION.—Any individual or busi-
ness that violates the thresholds established in
this paragraph shall, with respect to the first
such violation, receive a warning letter from the
Attorney General and, if a business, the busi-
ness shall be required to conduct mandatory
education of the sales employees of the firm
with 
regard 
to 
the 
legal 
sales 
of
pseudoephedrine. For a second violation occur-
ring within 2 years of the first violation, the
business or individual shall be subject to a civil
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penalty of not more than $5,000. For any sub-
sequent violation occurring within 2 years of
the previous violation, the business or individual
shall be subject to a civil penalty not to exceed
the amount of the previous civil penalty plus
$5,000.
(3) COMBINATION EPHEDRINE PRODUCTS.—
(A) LIMIT.—
(i) IN
GENERAL.—Not sooner than
the effective date of this section and sub-
ject to the requirements of clause (ii), the
Attorney General may establish by regula-
tion a single-transaction limit of 24 grams
of ephedrine base for retail distributors of
combination ephedrine products. Notwith-
standing any other provision of law, the
single-transaction threshold quantity for
combination ephedrine products may not
be lowered beyond that established in this
paragraph.
(ii) CONDITIONS.—In order to estab-
lish a single-transaction limit of 24 grams
of ephedrine base, the Attorney General
shall determine, following notice, comment,
and an informal hearing, that since the
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date of the enactment of this Act there are
a significant number of instances where or-
dinary 
over-the-counter 
combination
ephredrine products as established in para-
graph (45) of section 102 of the Controlled
Substances Act (21 U.S.C. 802(45)), as
added by this Act, sold by retail distribu-
tors as established in paragraph (46) in
section 102 of the Controlled Substances
Act (21 U.S.C. 802(46)), are being widely
used as a significant source of precursor
chemicals for illegal manufacture of a con-
trolled substance for distribution or sale.
(B) VIOLATION.—Any individual or busi-
ness that violates the thresholds established in
this paragraph shall, with respect to the first
such violation, receive a warning letter from the
Attorney General and, if a business, the busi-
ness shall be required to conduct mandatory
education of the sales employees of the firm
with regard to the legal sales of combination
ephedrine products. For a second violation oc-
curring within 2 years of the first violation, the
business or individual shall be subject to a civil
penalty of not more than $5,000. For any sub-
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sequent violation occurring within 2 years of
the previous violation, the business or individual
shall be subject to a civil penalty not to exceed
the amount of the previous civil penalty plus
$5,000.
(4) SIGNIFICANT NUMBER OF INSTANCES.—(A)
For purposes of this subsection, isolated or infre-
quent use, or use in insubstantial quantities, of ordi-
nary over-the-counter pseudoephedrine, over-the-
counter phenylpropanolamine, or over the counter
combination ephedrine, and sold at the retail level,
for the illicit manufacture of a controlled substance
may not be used by the Attorney General as the
basis for establishing the conditions for establishing
a single transaction limit under this section.
(B) In making a determination under para-
graph (1)(A)(ii), paragraph (2)(A)(ii), or paragraph
(3)(A)(ii), the Attorney General shall consult with
the Secretary of Health and Human Services in
order to consider the effects on public health that
would occur from the establishment of new single
transaction limits under this section.
(C) After making a determination under para-
graph (1)(A)(ii), paragraph (2)(A)(ii), or paragraph
(3)(A)(ii), the Attorney General shall transmit a re-
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port to the Committees on the Judiciary of the
House of Representatives and the Senate in which
the Attorney General will provide the factual basis
for establishing the new single transaction limits
under this section.
(5) DEFINITION OF BUSINESS.—For purposes
of this subsection, the term ‘‘business’’ means the
entity that makes the direct sale and does not in-
clude the parent company of a business not involved
in a direct sale regulated by this subsection.
(6) JUDICIAL REVIEW.—Any regulation promul-
gated by the Attorney General under this section
shall be subject to judicial review pursuant to section
507 of the Controlled Substances Act (21 U.S.C.
877).
(e) EFFECT
ON
THRESHOLDS.—Nothing in the
amendments made by subsection (b) or the provisions of
subsection (d) shall affect the authority of the Attorney
General to modify thresholds (including cumulative
thresholds) for retail distributors for products other than
ordinary 
over-the-counter 
pseudoephedrine, 
phenyl-
propanolamine, or combination ephedrine products (as de-
fined in section 102(45) of the Controlled Substances Act,
as added by this section) or for non-retail distributors, im-
porters, or exporters.
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(f) EFFECTIVE DATE OF THIS SECTION.—Notwith-
standing any other provision of this Act, this section shall
not apply to the sale of any pseudoephedrine, phenyl-
propanolamine, or combination ephedrine product prior to
12 months after the date of enactment of this Act.
SEC. 402. MAIL ORDER RESTRICTIONS.
Section 310(b) of the Controlled Substances Act (21
U.S.C. 830(b)) is amended by adding at the end the fol-
lowing:
‘‘(3) MAIL ORDER REPORTING.—(A) Each regu-
lated person who engages in a transaction with a
nonregulated person which—
‘‘(i) involves ephedrine, pseudoephedrine,
or phenylpropanolamine (including drug prod-
ucts containing these chemicals); and
‘‘(ii) uses or attempts to use the Postal
Service or any private or commercial carrier;
shall, on a monthly basis, submit a report of each
such transaction conducted during the previous
month to the Attorney General in such form, con-
taining such data, and at such times as the Attorney
General shall establish by regulation.
‘‘(B) The data required for such reports shall
include—
‘‘(i) the name of the purchaser;
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‘‘(ii) the quantity and form of the ephed-
rine, pseudoephedrine, or phenylpropanolamine
purchased; and
‘‘(iii) the address to which such ephedrine,
pseudoephedrine, or phenylpropanolamine was
sent.’’.
TITLE V—EDUCATION AND
RESEARCH
SEC. 501. INTERAGENCY METHAMPHETAMINE TASK FORCE.
(a) ESTABLISHMENT.—There is established a ‘‘Meth-
amphetamine Interagency Task Force’’ (referred to as the
‘‘interagency task force’’) which shall consist of the follow-
ing members:
(1) The Attorney General, or a designee, who
shall serve as chair.
(2) 2 representatives selected by the Attorney
General.
(3) The Secretary of Education or a designee.
(4) The Secretary of Health and Human Serv-
ices or a designee.
(5) 2 representatives of State and local law en-
forcement and regulatory agencies, to be selected by
the Attorney General.
(6) 2 representatives selected by the Secretary
of Health and Human Services.