129 
authorized to be appropriated $100,000 for each of 
the first 3 fiscal years in which this section is in ef-
fect. 
(e) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) take effect 90 days after the date 
of enactment of this Act, without regard to whether a final 
rule to implement such amendments has been promulgated 
by the Secretary of Health and Human Services under 
section 701(a) of the Federal Food, Drug, and Cosmetic 
Act. The preceding sentence may not be construed as af-
fecting the authority of such Secretary to promulgate such 
a final rule. 
SEC. 8. PROHIBITING PAYMENTS TO UNREGISTERED FOR-
EIGN PHARMACIES. 
(a) IN GENERAL.—Section 303 of the Federal Food, 
Drug, and Cosmetic Act (21 U.S.C. 333) is amended by 
adding at the end the following: 
‘‘(h) RESTRICTED TRANSACTIONS.— 
‘‘(1) IN
GENERAL.—The introduction of re-
stricted transactions into a payment system or the 
completion of restricted transactions using a pay-
ment system is prohibited. 
‘‘(2) PAYMENT SYSTEM.— 
‘‘(A) IN
GENERAL.—The term ‘payment 
system’ means a system used by a person de-
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scribed in subparagraph (B) to effect a credit 
transaction, electronic fund transfer, or money 
transmitting service that may be used in con-
nection with, or to facilitate, a restricted trans-
action, and includes— 
‘‘(i) a credit card system; 
‘‘(ii) an international, national, re-
gional, or local network used to effect a 
credit transaction, an electronic fund 
transfer, or a money transmitting service; 
and 
‘‘(iii) any other system that is cen-
trally managed and is primarily engaged in 
the transmission and settlement of credit 
transactions, electronic fund transfers, or 
money transmitting services. 
‘‘(B) PERSONS DESCRIBED.—A person re-
ferred to in subparagraph (A) is— 
‘‘(i) a creditor; 
‘‘(ii) a credit card issuer; 
‘‘(iii) a financial institution; 
‘‘(iv) an operator of a terminal at 
which an electronic fund transfer may be 
initiated; 
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‘‘(v) a money transmitting business; 
or 
‘‘(vi) a participant in an international, 
national, regional, or local network used to 
effect a credit transaction, electronic fund 
transfer, or money transmitting service. 
‘‘(3) RESTRICTED
TRANSACTION.—The term 
‘restricted transaction’ means a transaction or trans-
mittal, on behalf of an individual who places an un-
lawful drug importation request to any person en-
gaged in the operation of an unregistered foreign 
pharmacy, of— 
‘‘(A) credit, or the proceeds of credit, ex-
tended to or on behalf of the individual for the 
purpose of the unlawful drug importation re-
quest (including credit extended through the 
use of a credit card); 
‘‘(B) an electronic fund transfer or funds 
transmitted by or through a money transmit-
ting business, or the proceeds of an electronic 
fund transfer or money transmitting service, 
from or on behalf of the individual for the pur-
pose of the unlawful drug importation request; 
‘‘(C) a check, draft, or similar instrument 
which is drawn by or on behalf of the individual 
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132 
for the purpose of the unlawful drug importa-
tion request and is drawn on or payable at or 
through any financial institution; or 
‘‘(D) the proceeds of any other form of fi-
nancial transaction (identified by the Board by 
regulation) that involves a financial institution 
as a payor or financial intermediary on behalf 
of or for the benefit of the individual for the 
purpose of the unlawful drug importation re-
quest. 
‘‘(4) UNLAWFUL
DRUG
IMPORTATION
RE-
QUEST.—The term ‘unlawful drug importation re-
quest’ means the request, or transmittal of a re-
quest, made to an unregistered foreign pharmacy for 
a prescription drug by mail (including a private car-
rier), facsimile, phone, or electronic mail, or by a 
means that involves the use, in whole or in part, of 
the Internet. 
‘‘(5) UNREGISTERED
FOREIGN
PHARMACY.— 
The term ‘unregistered foreign pharmacy’ means a 
person in a country other than the United States 
that is not a registered exporter under section 804. 
‘‘(6) OTHER DEFINITIONS.— 
‘‘(A) CREDIT; CREDITOR; CREDIT CARD.— 
The terms ‘credit’, ‘creditor’, and ‘credit card’ 
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133 
have the meanings given the terms in section 
103 of the Truth in Lending Act (15 U.S.C. 
1602). 
‘‘(B) ACCESS DEVICE; ELECTRONIC FUND 
TRANSFER.—The terms ‘access device’ and 
‘electronic fund transfer’— 
‘‘(i) have the meaning given the term 
in section 903 of the Electronic Fund 
Transfer Act (15 U.S.C. 1693a); and 
‘‘(ii) the term ‘electronic fund trans-
fer’ also includes any fund transfer covered 
under Article 4A of the Uniform Commer-
cial Code, as in effect in any State. 
‘‘(C) FINANCIAL INSTITUTION.—The term 
‘financial institution’— 
‘‘(i) has the meaning given the term 
in section 903 of the Electronic Transfer 
Fund Act (15 U.S.C. 1693a); and 
‘‘(ii) includes a financial institution 
(as defined in section 509 of the Gramm- 
Leach-Bliley Act (15 U.S.C. 6809)). 
‘‘(D) MONEY
TRANSMITTING
BUSINESS; 
MONEY
TRANSMITTING
SERVICE.—The terms 
‘money transmitting business’ and ‘money 
transmitting service’ have the meaning given 
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134 
the terms in section 5330(d) of title 31, United 
States Code. 
‘‘(E) BOARD.—The term ‘Board’ means 
the Board of Governors of the Federal Reserve 
System. 
‘‘(7) POLICIES AND PROCEDURES REQUIRED TO 
PREVENT RESTRICTED TRANSACTIONS.— 
‘‘(A) REGULATIONS.—The Board shall 
promulgate regulations requiring— 
‘‘(i) an operator of a credit card sys-
tem; 
‘‘(ii) an operator of an international, 
national, regional, or local network used to 
effect a credit transaction, an electronic 
fund transfer, or a money transmitting 
service; 
‘‘(iii) an operator of any other pay-
ment system that is centrally managed and 
is primarily engaged in the transmission 
and settlement of credit transactions, elec-
tronic transfers or money transmitting 
services where at least one party to the 
transaction or transfer is an individual; 
and 
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‘‘(iv) any other person described in 
paragraph (2)(B) and specified by the 
Board in such regulations, 
to establish policies and procedures that are 
reasonably designed to prevent the introduction 
of a restricted transaction into a payment sys-
tem or the completion of a restricted trans-
action using a payment system 
‘‘(B) REQUIREMENTS FOR POLICIES AND 
PROCEDURES.—In 
promulgating 
regulations 
under subparagraph (A), the Board shall— 
‘‘(i) identify types of policies and pro-
cedures, including nonexclusive examples, 
that shall be considered to be reasonably 
designed to prevent the introduction of re-
stricted transactions into a payment sys-
tem or the completion of restricted trans-
actions using a payment system; and 
‘‘(ii) to the extent practicable, permit 
any payment system, or person described 
in paragraph (2)(B), as applicable, to 
choose among alternative means of pre-
venting the introduction or completion of 
restricted transactions. 
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136 
‘‘(C) NO LIABILITY FOR BLOCKING OR RE-
FUSING
TO
HONOR
RESTRICTED
TRANS-
ACTION.— 
‘‘(i) IN
GENERAL.—A payment sys-
tem, or a person described in paragraph 
(2)(B) that is subject to a regulation 
issued under this subsection, and any par-
ticipant in such payment system that pre-
vents or otherwise refuses to honor trans-
actions in an effort to implement the poli-
cies and procedures required under this 
subsection or to otherwise comply with this 
subsection shall not be liable to any party 
for such action. 
‘‘(ii) COMPLIANCE.—A person de-
scribed in paragraph (2)(B) meets the re-
quirements of this subsection if the person 
relies on and complies with the policies and 
procedures of a payment system of which 
the person is a member or in which the 
person is a participant, and such policies 
and procedures of the payment system 
comply with the requirements of the regu-
lations promulgated under subparagraph 
(A). 
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‘‘(D) ENFORCEMENT.— 
‘‘(i) IN GENERAL.—This section shall 
be enforced by the Federal functional regu-
lators and the Federal Trade Commission 
under applicable law in the manner pro-
vided in section 505(a) of the Gramm- 
Leach-Bliley Act (15 U.S.C. 6805(a)). 
‘‘(ii) FACTORS TO BE CONSIDERED.— 
In considering any enforcement action 
under this subsection against a payment 
system or person described in paragraph 
(2)(B), the Federal functional regulators 
and the Federal Trade Commission shall 
consider the following factors: 
‘‘(I) The extent to which the pay-
ment system or person knowingly per-
mits restricted transactions. 
‘‘(II) The history of the payment 
system or person in connection with 
permitting restricted transactions. 
‘‘(III) The extent to which the 
payment system or person has estab-
lished and is maintaining policies and 
procedures in compliance with regula-
tions prescribed under this subsection. 
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‘‘(8) TRANSACTIONS PERMITTED.—A payment 
system, or a person described in paragraph (2)(B) 
that is subject to a regulation issued under this sub-
section, is authorized to engage in transactions with 
foreign pharmacies in connection with investigating 
violations or potential violations of any rule or re-
quirement adopted by the payment system or person 
in connection with complying with paragraph (7). A 
payment system, or such a person, and its agents 
and employees shall not be found to be in violation 
of, or liable under, any Federal, State or other law 
by virtue of engaging in any such transaction. 
‘‘(9) RELATION TO STATE LAWS.—No require-
ment, prohibition, or liability may be imposed on a 
payment system, or a person described in paragraph 
(2)(B) that is subject to a regulation issued under 
this subsection, under the laws of any State with re-
spect to any payment transaction by an individual 
because the payment transaction involves a payment 
to a foreign pharmacy. 
‘‘(10) TIMING OF REQUIREMENTS.—A payment 
system, or a person described in paragraph (2)(B) 
that is subject to a regulation issued under this sub-
section, must adopt policies and procedures reason-
ably designed to comply with any regulations re-
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quired under paragraph (7) within 60 days after 
such regulations are issued in final form.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the day that is 90 days 
after the date of enactment of this Act. 
(c) IMPLEMENTATION.—The Board of Governors of 
the Federal Reserve System shall promulgate regulations 
as required by subsection (h)(7) of section 303 of the Fed-
eral Food, Drug, and Cosmetic Act (21 U.S.C. 333), as 
added by subsection (a), not later than 90 days after the 
date of enactment of this Act. 
SEC. 9. IMPORTATION EXEMPTION UNDER CONTROLLED 
SUBSTANCES IMPORT AND EXPORT ACT. 
Section 1006(a)(2) of the Controlled Substances Im-
port and Export Act (21 U.S.C. 956(a)(2)) is amended 
by striking ‘‘not import the controlled substance into the 
United States in an amount that exceeds 50 dosage units 
of the controlled substance.’’ and inserting ‘‘import into 
the United States not more than 10 dosage units com-
bined of all such controlled substances.’’. 
SEC. 10. SEVERABILITY. 
If any provision of this Act, an amendment by this 
Act, or the application of such provision or amendment 
to any person or circumstance is held to be unconstitu-
tional, the remainder of this Act, the amendments made 
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by this Act, and the application of the provisions of such 
to any person or circumstance shall not affected thereby. 
Æ 
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