‘‘(B) TERM.—The duration of a contract 
under subparagraph (A) shall not exceed 5 
years and may be renewable. 
‘‘(C) PERFORMANCE
REVIEW.—The Sec-
retary shall annually review performance under 
a contract under subparagraph (A). 
‘‘(d) PROVIDERS OF INTERACTIVE COMPUTER SERV-
ICES OR ADVERTISING SERVICES.—A provider of inter-
active computer services (as defined in section 230(f) of 
the Communications Act of 1934 (47 U.S.C. 230(f))) or 
an advertising service provider shall be liable under this 
section for dispensing or selling prescription drugs in vio-
lation of this section on account of another person’s selling 
or dispensing of a prescription drug if the provider of the 
service— 
‘‘(1) accepts advertising for a prescription drug 
from an unlicensed Internet pharmacy; or 
‘‘(2) accepts advertising stating that an indi-
vidual does not need a physician’s prescription to ob-
tain a prescription drug. 
‘‘(e) POLICIES
AND PROCEDURES REQUIRED
TO 
PREVENT PAYMENTS FOR UNLAWFUL INTERNET PHAR-
MACY REQUESTS.— 
‘‘(1) REGULATIONS.—Not later than 1 year 
after the date of enactment of this section, the Fed-
eral functional regulators shall promulgate regula-
tions requiring a person described in subsection 
(a)(2) to prevent restricted transactions by estab-
lishing policies and procedures that— 
‘‘(A) (i) are reasonably designed to allow 
the payment system and any person involved in 
the payment system to identify restricted trans-
actions by means of codes in authorization mes-
sages or by other means; and 
‘‘(ii) are reasonably designed to block re-
stricted transactions identified as a result of the 
policies and procedures developed under clause 
(i); or 
‘‘(B) prevent the acceptance of the prod-
ucts or services of the payment system in con-
nection with a restricted transaction. 
‘‘(2) REQUIREMENTS FOR POLICIES AND PRO-
CEDURES.—In promulgating regulations under para-
graph (1), the Federal functional regulators shall— 
‘‘(A) identify types of policies and proce-
dures, including nonexclusive examples, that 
shall be considered to be reasonably designed to 
identify and reasonably designed to block or to 
prevent the acceptance of the products or serv-
ices in connection with each type of restricted 
transaction, including— 
‘‘(i) identifying transactions by a code 
or codes in the authorization message; and 
‘‘(ii) denying authorization of a credit 
card transaction in response to an author-
ization message; and 
‘‘(B) to the extent practicable, permit any 
participant in a designated payment system to 
choose among alternative means of identifying 
and blocking, or otherwise preventing the ac-
ceptance of the products or services of the des-
ignated payment system or participant in con-
nection with, restricted transactions. 
‘‘(3) COMPLIANCE
WITH
PAYMENT
SYSTEM 
POLICIES AND PROCEDURES.—A person described in 
subsection (a)(2)(B) meets the requirement of para-
graph (1) if— 
‘‘(A) the person relies on and complies 
with the policies and procedures of a designated 
payment system of which the person is a mem-
ber or in which the person is a participant, to— 
‘‘(i) identify and block restricted 
transactions; or
‘‘(ii) otherwise prevent the acceptance 
of the products or services of the payment 
system, member, or participant in connec-
tion with restricted transactions; and 
‘‘(B) such policies and procedures of the 
designated payment system comply with the re-
quirements of regulations promulgated under 
paragraph (1). 
‘‘(4) NO LIABILITY FOR BLOCKING OR REFUS-
ING TO HONOR RESTRICTED TRANSACTION.—A per-
son that is subject to a regulation or an order issued 
under this section and blocks or otherwise refuses to 
honor a restricted transaction (or a transaction that 
such person reasonably believes to be a restricted 
transaction) or as a member of a designated pay-
ment system, relies on the policies and procedures of 
the payment system in an effort to comply with reg-
ulations promulgated under this section, shall not be 
liable to any party for such action. 
‘‘(5) ENFORCEMENT.— 
‘‘(A) IN GENERAL.—This section shall be 
enforced by the Federal functional regulators 
and the Federal Trade Commission under appli-
cable law in the manner provided in section
505(a) of the Gramm-Leach-Bliley Act (21 
U.S.C. 6805(a)). 
‘‘(B) FACTORS
TO
BE
CONSIDERED.—In 
considering any enforcement action under this 
subsection against a payment system or person 
described in subsection (a)(2)(B), the Federal 
functional regulators and the Federal Trade 
Commission shall consider the following factors: 
‘‘(i) The extent to which the person is 
extending credit or transmitting funds 
knowing the transaction is in connection 
with an unlawful Internet pharmacy re-
quest. 
‘‘(ii) The history of the person in ex-
tending credit or transmitting funds know-
ing the transaction is in connection with 
an unlawful Internet pharmacy request. 
‘‘(iii) The extent to which the person 
has established and is maintaining policies 
and procedures in compliance with regula-
tions prescribed under this subsection. 
‘‘(iv) The feasibility that any specific 
remedy prescribed can be implemented by 
the person without substantial deviation 
from normal business practice.
‘‘(v) The costs and burdens the spe-
cific remedy will have on the person. 
‘‘(f) REPORTS REGARDING INTERNET-RELATED VIO-
LATIONS OF FEDERAL AND STATE LAWS ON DISPENSING 
OF DRUGS.—The Secretary shall, pursuant to the submis-
sion of an application meeting criteria prescribed by the 
Secretary, make an award of a grant or contract to an 
entity with experience in developing and maintaining sys-
tems for the purpose of— 
‘‘(1) identifying Internet pharmacy websites 
that are not licensed or that appear to be operating 
in violation of Federal or State laws concerning the 
dispensing of drugs; 
‘‘(2) reporting such Internet pharmacy websites 
to State medical licensing boards and State phar-
macy licensing boards, and to the Attorney General 
and the Secretary, for further investigation; and 
‘‘(3) submitting, for each fiscal year for which 
the award under this subsection is made, a report to 
the Secretary describing investigations undertaken 
with respect to violations described in paragraph 
(1).’’. 
(b) PROHIBITED ACT.—Section 301 of the Federal 
Food, Drug, and Cosmetic Act (21 U.S.C. 331) (as