TITLE 
I—IMPORTATION 
OF
METHAMPHETAMINE 
AND
PRECURSOR CHEMICALS
SEC. 101. SUPPORT FOR INTERNATIONAL EFFORTS TO CON-
TROL DRUGS.
The Attorney General, in consultation with the Sec-
retary of State, shall coordinate international drug en-
forcement efforts to decrease the movement of meth-
amphetamine and methamphetamine precursors into the
United States.
SEC. 102. PENALTIES FOR MANUFACTURE OF LISTED
CHEMICALS OUTSIDE THE UNITED STATES
WITH INTENT TO IMPORT THEM INTO THE
UNITED STATES.
(a) UNLAWFUL IMPORTATION.—Section 1009(a) of
the Controlled Substances Import and Export Act (21
U.S.C. 959(a)) is amended—
(1) in the matter before paragraph (1), by in-
serting ‘‘or listed chemical’’ after ‘‘schedule I or II’’;
and
(2) in paragraphs (1) and (2), by inserting ‘‘or
chemical’’ after ‘‘substance’’.
(b) UNLAWFUL MANUFACTURE OR DISTRIBUTION.—
Paragraphs (1) and (2) of section 1009(b) of the Con-
trolled Substances Import and Export Act (21 U.S.C.
959(b)) are amended by inserting ‘‘or listed chemical’’
after ‘‘controlled substance’’.
(c) PENALTIES.—Section 1010(d) of the Controlled
Substances Import and Export Act (21 U.S.C. 960(d)) is
amended—
(1) in paragraph (5), by striking ‘‘or’’ at the
end;
(2) in paragraph (6), by striking the comma at
the end and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(7) manufactures, possesses with intent to dis-
tribute, or distributes a listed chemical in violation
of section 959 of this title.’’.
TITLE II—PROVISIONS TO CON-
TROL THE MANUFACTURE OF
METHAMPHETAMINE
SEC. 201. SEIZURE AND FORFEITURE OF REGULATED
CHEMICALS.
(a) PENALTIES FOR SIMPLE POSSESSION.—Section
404 of the Controlled Substances Act (21 U.S.C. 844) is
amended—
(1) in subsection (a)—
(A) by adding after the first sentence the
following: ‘‘It shall be unlawful for any person
knowingly or intentionally to possess any list I
chemical obtained pursuant to or under author-
ity of a registration issued to that person under
section 303 of this title or section 1008 of title
III if that registration has been revoked or sus-
pended, if that registration has expired, or if
the registrant has ceased to do business in the
manner contemplated by his registration.’’; and
(B) by striking ‘‘drug or narcotic’’ and in-
serting ‘‘drug, narcotic, or chemical’’ each place
it appears; and
(2) in subsection (c), by striking ‘‘drug or nar-
cotic’’ and inserting ‘‘drug, narcotic, or chemical’’.
(b) FORFEITURES.—Section 511(a) of the Controlled
Substances Act (21 U.S.C. 881(a)) is amended—
(1) in paragraphs (2) and (6), by inserting ‘‘or
listed chemical’’ after ‘‘controlled substance’’ each
place it appears; and
(2) in paragraph (9), by—
(A) inserting ‘‘dispensed, acquired,’’ after
‘‘distributed,’’ both places it appears; and
(B) striking ‘‘a felony provision of’’.
(c) SEIZURE.—Section 607 of the Tariff Act of 1930
(19 U.S.C. 1607) is amended—
(1) in subsection (a)(3), by inserting ‘‘or listed
chemical’’ after ‘‘controlled substance’’; and
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b) As used in this section, the terms ‘controlled
substance’ and ‘listed chemical’ have the meaning given
such terms in section 102 of the Controlled Substances
Act (21 U.S.C. 802).’’.
SEC. 202. STUDY AND REPORT ON MEASURES TO PREVENT
SALES OF AGENTS USED IN METHAMPHET-
AMINE PRODUCTION.
(a) STUDY.—The Attorney General of the United
States shall conduct a study on possible measures to effec-
tively prevent the diversion of red phosphorous, iodine, hy-
drochloric gas, and other agents for use in the production
of methamphetamine. Nothing in this section shall pre-
clude the Attorney General from taking any action the At-
torney General already is authorized to take with regard
to the regulation of listed chemicals under current law.
(b) REPORT.—Not later than January 1, 1998, the
Attorney General shall submit a report to the Congress
of its findings pursuant to the study conducted under sub-
section (a) on the need for and advisability of preventive
measures.
(c) CONSIDERATIONS.—In developing recommenda-
tions under subsection (b), the Attorney General shall con-
sider—
(1) the use of red phosphorous, iodine, hydro-
chloric gas, and other agents in the illegal manufac-
ture of methamphetamine;
(2) the use of red phosphorous, iodine, hydro-
chloric gas, and other agents for legitimate, legal
purposes, and the impact any regulations may have
on these legitimate purposes; and
(3) comments and recommendations from law
enforcement, manufacturers of such chemicals, and
the consumers of such chemicals for legitimate, legal
purposes.
SEC. 203. INCREASED PENALTIES FOR MANUFACTURE AND
POSSESSION OF EQUIPMENT USED TO MAKE
CONTROLLED SUBSTANCES.
(a) IN GENERAL.—Section 403(d) of the Controlled
Substances Act (21 U.S.C. 843(d)) is amended—
(1) by striking ‘‘(d) Any person’’ and inserting
‘‘(d)(1) Except as provided in paragraph (2), any
person’’; and
(2) by adding at the end the following:
‘‘(2) Any person who, with the intent to manufacture
or facilitate to manufacture methamphetamine, violates
paragraph (6) or (7) of subsection (a), shall be sentenced
to a term of imprisonment of not more than 10 years,
a fine of not more than $30,000, or both; except that if
any person commits such a violation after one or more
prior convictions of that person—
‘‘(A) for a violation of paragraph (6) or (7) of
subsection (a);
‘‘(B) for a felony under any other provision of
this subchapter or subchapter II of this chapter; or
‘‘(C) under any other law of the United States
or any State relating to controlled substances or list-
ed chemicals,
has become final, such person shall be sentenced to a term
of imprisonment of not more than 20 years, a fine of not
more than $60,000, or both.’’.
(b) SENTENCING COMMISSION.—The United States
Sentencing Commission shall amend the sentencing guide-
lines to ensure that the manufacture of methamphetamine
in violation of section 403(d)(2) of the Controlled Sub-
stances Act, as added by subsection (a), is treated as a
significant violation.
SEC. 204. ADDITION OF IODINE AND HYDROCHLORIC GAS
TO LIST II.
(a) IN GENERAL.—Section 102(35) of the Controlled
Substances Act (21 U.S.C. 802(35)) is amended by adding
at the end the following:
‘‘(I) Iodine.
‘‘(J) Hydrochloric gas.’’.
(b) IMPORTATION REQUIREMENTS.—(1) Iodine shall
not be subject to the requirements for listed chemicals pro-
vided in section 1018 of the Controlled Substances Import
and Export Act (21 U.S.C. 971).
(2) EFFECT OF EXCEPTION.—The exception made by
paragraph (1) shall not limit the authority of the Attorney
General to impose the requirements for listed chemicals
provided in section 1018 of the Controlled Substances Im-
port and Export Act (21 U.S.C. 971).
SEC. 205. CIVIL PENALTIES FOR FIRMS THAT SUPPLY PRE-
CURSOR CHEMICALS.
(a) OFFENSES.—Section 402(a) of the Controlled
Substances Act (21 U.S.C. 842(a)) is amended—
(1) in paragraph (9), by striking ‘‘or’’ after the
semicolon;
(2) in paragraph (10), by striking the period
and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(11) to distribute a laboratory supply to a per-
son who uses, or attempts to use, that laboratory
supply to manufacture a controlled substance or a
listed chemical, in violation of this title or title III,
with reckless disregard for the illegal uses to which
such a laboratory supply will be put.
As used in paragraph (11), the term ‘laboratory supply’
means a listed chemical or any chemical, substance, or
item, on a special surveillance list published by the Attor-
ney General, which contains chemicals, products, mate-
rials, or equipment used in the manufacture of controlled
substances and listed chemicals. For purposes of para-
graph (11), there is a rebuttable presumption of reckless
disregard at trial if a firm distributes or continues to dis-
tribute a laboratory supply to a customer where the Attor-
ney General has previously notified, at least two weeks be-
fore the transaction(s), the firm that a laboratory supply
sold by the firm, or any other person or firm, has been
used by that customer, or distributed further by that cus-
tomer, for the unlawful production of controlled sub-
stances or listed chemicals.’’
(b) CIVIL PENALTY.—Section 402(c)(2) of the Con-
trolled Substances Act (21 U.S.C. 842(c)(2)) is amended
by adding at the end the following:
‘‘(C) In addition to the penalties set forth else-
where in this title or title III, any business that vio-
lates paragraph (11) of subsection (a) shall, with re-
spect to the first such violation, be subject to a civil
penalty of not more than $250,000, but shall not
be subject to criminal penalties under this section,
and shall, for any succeeding violation, be subject
to a civil fine of not more than $250,000 or double
the last previously imposed penalty, whichever is
greater.’’.
SEC. 206. INJUNCTIVE RELIEF.
(a) TEN-YEAR INJUNCTION MAJOR OFFENSES.—
Section 401(f) of the Controlled Substances Act (21
U.S.C. 841(f)) is amended by—
(1) inserting ‘‘manufacture, exportation,’’ after
‘‘distribution,’’; and
(2) striking ‘‘regulated’’.
(b) TEN-YEAR INJUNCTION OTHER OFFENSES.—
Section 403 of the Controlled Substances Act (21 U.S.C.
843) is amended—
(1) in subsection (e), by—
(A) inserting ‘‘manufacture, exportation,’’
after ‘‘distribution,’’; and
(B) striking ‘‘regulated’’; and
(2) by adding at the end the following:
‘‘(f) INJUNCTIONS.—(1) In addition to any penalty
provided in this section, the Attorney General is author-
ized to commence a civil action for appropriate declaratory
or injunctive relief relating to violations of this section or
section 402.
‘‘(2) Any action under this subsection may be
brought in the district court of the United States for the
district in which the defendant is located or resides or is
doing business.
‘‘(3) Any order or judgment issued by the court pur-
suant to this subsection shall be tailored to restrain viola-
tions of this section or section 402.
‘‘(4) The court shall proceed as soon as practicable
to the hearing and determination of such an action. An
action under this subsection is governed by the Federal
Rules of Civil Procedure except that, if an indictment has
been returned against the respondent, discovery is gov-
erned by the Federal Rules of Criminal Procedure.’’.
SEC. 207. RESTITUTION FOR CLEANUP OF CLANDESTINE
LABORATORY SITES.
Section 413 of the Controlled Substances Act (21
U.S.C. 853) is amended by adding at the end the follow-
ing:
‘‘(q) The court, when sentencing a defendant con-
victed of an offense under this title or title III involving
the manufacture of methamphetamine, may—
‘‘(1) order restitution as provided in sections
3612 and 3664 of title 18, United States Code;
‘‘(2) order the defendant to reimburse the Unit-
ed States for the costs incurred by the United States
for the cleanup associated with the manufacture of
methamphetamine by the defendant; and
‘‘(3) order restitution to any person injured as
a result of the offense as provided in section 3663
of title 18, United States Code.’’.
SEC. 208. RECORD RETENTION.
Section 310(a)(1) of the Controlled Substances Act
(21 U.S.C. 830(a)(1)) is amended by striking the dash
after ‘‘transaction’’ and subparagraphs (A) and (B) and
inserting ‘‘for two years after the date of the trans-
action.’’.
SEC. 209. TECHNICAL AMENDMENTS.
Section 102 of the Controlled Substances Act (21
U.S.C. 802) is amended—
(1) in paragraph (34), by amending subpara-
graphs (P), (S), and (U) to read as follows:
‘‘(P) Iso safrole.
‘‘(S) N-Methylephedrine.
‘‘(U) Hydriodic acid.’’; and
(2) in paragraph (35), by amending subpara-
graph (G) to read as follows:
‘‘(G) 2-Butanone (or Methyl Ethyl Ke-
tone).’’.
TITLE 
III—INCREASED 
PEN-
ALTIES 
FOR 
TRAFFICKING
AND 
MANUFACTURE 
OF
METHAMPHETAMINE 
AND
PRECURSORS
SEC. 301. TRAFFICKING IN METHAMPHETAMINE PENALTY
INCREASES.
(a) CONTROLLED SUBSTANCES ACT.—
(1) 
LARGE
AMOUNTS.—Section
401(b)(1)(A)(viii) of the Controlled Substances Act
(21 U.S.C. 841(b)(1)(A)(viii)) is amended by—
(A) striking ‘‘100 grams or more of meth-
amphetamine,’’ and inserting ‘‘50 grams or
more of methamphetamine,’’; and
(B) striking ‘‘1 kilogram or more of a mix-
ture or substance containing a detectable
amount of methamphetamine’’ and inserting
‘‘500 grams or more of a mixture or substance
containing a detectable amount of methamphet-
amine’’.
(2) 
SMALLER
AMOUNTS.—Section
401(b)(1)(B)(viii) of the Controlled Substances Act
(21 U.S.C. 841(b)(1)(B)(viii)) is amended by—
(A) striking ‘‘10 grams or more of meth-
amphetamine,’’ and inserting ‘‘5 grams or more
of methamphetamine,’’; and
(B) striking ‘‘100 grams or more of a mix-
ture or substance containing a detectable
amount of methamphetamine’’ and inserting
‘‘50 grams or more of a mixture or substance
containing a detectable amount of methamphet-
amine’’.
(b) IMPORT AND EXPORT ACT.—
(1) LARGE AMOUNTS.—Section 1010(b)(1)(H)
of the Controlled Substances Import and Export Act
(21 U.S.C. 960(b)(1)(H)) is amended by—
(A) striking ‘‘100 grams or more of meth-
amphetamine,’’ and inserting ‘‘50 grams or
more of methamphetamine,’’; and
(B) striking ‘‘1 kilogram or more of a mix-
ture or substance containing a detectable
amount of methamphetamine’’ and inserting
‘‘500 grams or more of a mixture or substance
containing a detectable amount of methamphet-
amine’’.
(2) 
SMALLER
AMOUNTS.—Section
1010(b)(2)(H) of the Controlled Substances Import
and Export Act (21 U.S.C. 960(b)(2)(H)) is amend-
ed by—
(A) striking ‘‘10 grams or more of meth-
amphetamine,’’ and inserting ‘‘5 grams or more
of methamphetamine,’’; and
(B) striking ‘‘100 grams or more of a mix-
ture or substance containing a detectable
amount of methamphetamine’’ and inserting
‘‘50 grams or more of a mixture or substance
containing a detectable amount of methamphet-
amine’’.
SEC. 302. PENALTY INCREASES FOR TRAFFICKING IN LIST-
ED CHEMICALS.
(a) 
CONTROLLED
SUBSTANCES
ACT.—Section
401(d) of the Controlled Substances Act (21 U.S.C.
841(d)) is amended by striking the period and inserting
the following: ‘‘or, with respect to a violation of paragraph
(1) or (2) of this subsection involving a list I chemical,
if the government proves the quantity of controlled sub-
stance that could reasonably have been manufactured in
a clandestine setting using the quantity of list I chemicals
possessed or distributed, the penalty corresponding to the
quantity of controlled substance that could have been pro-
duced under subsection (b).’’.
(b) CONTROLLED SUBSTANCE IMPORT AND EXPORT
ACT.—Section 1010(d) of the Controlled Substance Im-
port and Export Act (21 U.S.C. 960(d)) is amended by
striking the period and inserting the following: ‘‘, or, with
respect to an importation violation of paragraph (1) or
(3) of this subsection involving a list I chemical, if the
government proves the quantity of controlled substance
that could reasonably have been manufactured in a clan-
destine setting using the quantity of list I chemicals im-
ported, the penalty corresponding to the quantity of con-
trolled substance that could have been produced under
title II.’’.
(c) DETERMINATION OF QUANTITY.—
(1) IN GENERAL.—For the purposes of this sec-
tion and the amendments made by this section, the
quantity of controlled substance that could reason-
ably have been provided shall be determined by
using a table of manufacturing conversion ratios for
list I chemicals.
(2) TABLE.—The table shall be—
(A) established by the United States Sen-
tencing Commission based on scientific, law en-
forcement, and other data the Sentencing Com-
mission deems appropriate; and
(B) dispositive of this issue.
SEC. 303. ENHANCED PENALTY FOR DANGEROUS HAN-
DLING 
OF 
CONTROLLED 
SUBSTANCES:
AMENDMENT OF SENTENCING GUIDELINES.
(a) IN GENERAL.—Pursuant to its authority under
section 994 of title 28, United States Code, the United
States Sentencing Commission shall determine whether
the Sentencing Guidelines adequately punish the offenses
described in subsection (b) and, if not, promulgate guide-
lines or amend existing guidelines to provide an appro-
priate enhancement of the punishment for a defendant
convicted of such an offense.
(b) OFFENSE.—The offense referred to in subsection
(a) is a violation of section 401(d), 401(g)(1), 403(a)(6),
or 403(a)(7) of The Controlled Substances Act (21 U.S.C.
841(d), 841(g)(1), 843(a)(6), and 843(a)(7)), in cases in
which in the commission of the offense the defendant vio-
lated—
(1) subsection (d) or (e) of section 3008 of the
Solid Waste Disposal Act (relating to handling haz-
ardous waste in a manner inconsistent with Federal
or applicable State law);
(2) section 103(b) of the Comprehensive Envi-
ronmental Response, Compensation and Liability
Act (relating to failure to notify as to the release of
a reportable quantity of a hazardous substance into
the environment);
(3) 
section 
301(a), 
307(d), 
309(c)(2),
309(c)(3), 311(b)(3), or 311(b)(5) of the Federal
Water Pollution Control Act (relating to the unlaw-
ful discharge of pollutants or hazardous substances,
the operation of a source in violation of a
pretreatment standard, and the failure to notify as
to the release of a reportable quantity of a hazard-
ous substance into the water); or
(4) section 5124 of title 49, United States Code
(relating to violations of laws and regulations en-
forced by the Department of Transportation with re-
spect to the transportation of hazardous material).
TITLE 
IV—LEGAL 
MANUFAC-
TURE, 
DISTRIBUTION, 
AND
SALE OF PRECURSOR CHEMI-
CALS
SEC. 401. DIVERSION OF CERTAIN PRECURSOR CHEMI-
CALS.
(a) IN GENERAL.—Section 102(39) of the Controlled
Substances Act (21 U.S.C. 802(39)) is amended—
(1) in subparagraph (A)(iv)(I)(aa), by striking
‘‘as’’ 
through 
the 
semicolon 
and 
inserting
‘‘, pseudoephedrine or its salts, optical isomers, or
salts of optical isomers, or phenylpropanolamine or
its salts, optical isomers, or salts of optical isomers
unless otherwise provided by regulation of the Attor-
ney General issued pursuant to section 204(e) of
this title;’’; and
(2) in subparagraph (A)(iv)(II), by inserting
‘‘, pseudoephedrine, phenylpropanolamine,’’ after
‘‘ephedrine’’.
(b) LEGITIMATE RETAILERS.—Section 102 of the
Controlled Substances Act (21 U.S.C. 802) is amended—
(1) in paragraph (39)(A)(iv)(I)(aa), by adding
before the semicolon the following: ‘‘, except that
any 
sale 
of 
ordinary 
over-the-counter
pseudoephedrine or phenylpropanolamine products
by retail distributors shall not be a regulated trans-
action (except as provided in section 401(d) of the
Comprehensive Methamphetamine Control Act of
1996)’’;
(2) in paragraph (39)(A)(iv)(II), by adding be-
fore the semicolon the following: ‘‘, except that any
sale of products containing pseudoephedrine or
phenylpropanolamine, other than ordinary over-the-
counter pseudoephedrine or phenylpropanolamine
products, by retail distributors shall not be a regu-
lated transaction if the distributor’s sales are limited
to less than the threshold quantity of 24 grams of
pseudoephedrine or 24 grams of phenylpropanola-
mine in each single transaction’’;
(3) by redesignating paragraph (43) relating to
felony drug abuse as paragraph (44); and
(4) by adding at the end the following:
‘‘(45) The term ‘ordinary over-the-counter
pseudoephedrine or phenylpropanolamine product’
means any product containing pseudoephedrine or
phenylpropanolamine that is—
‘‘(A) regulated pursuant to this title; and
‘‘(B)(i) except for liquids, sold in package
sizes 
of 
not 
more 
than 
3.0 
grams 
of
pseudoephedrine base or 3.0 grams of phenyl-
propanolamine base, and that is packaged in
blister packs, each blister containing not more
than two dosage units, or where the use of blis-
ter 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—
‘‘(i) with respect to an entity that is a gro-
cery store, general merchandise store, or drug
store, a distributor whose activities relating to
pseudoephedrine or phenylpropanolamine prod-
ucts are limited almost exclusively to sales, both
in number of sales and volume of sales, directly
to walk-in customers; and
‘‘(ii) with respect to any other entity, a
distributor whose activities relating to ordinary
over-the-counter pseudoephedrine or phenyl-
propanolamine products are limited primarily to
sales directly to walk-in customers for personal
use.
‘‘(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.
‘‘(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.’’.
(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.—The Attorney
General shall by regulation reinstate the exemption with
respect to a particular ephedrine, pseudoephedrine, or
phenylpropanolamine drug product if the Attorney Gen-
eral determines that the drug product is manufactured
and distributed in a manner that prevents diversion. In
making this determination the Attorney General shall con-
sider the factors listed in subsection (d)(2). Any regulation
issued pursuant to this subsection may be amended or re-
voked 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 establish, following notice,
comment, and an informal hearing that
since the effective date of this section 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
used as a significant source of precursor
chemicals for illegal manufacture of a con-
trolled substance in bulk.
(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
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 establish, following notice,
comment, and an informal hearing, that
since the effective date of this section 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 used as a significant source of pre-
cursor chemicals for illegal manufacture of
a controlled substance in bulk.
(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
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) 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.
(4) 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