< Back to H.R. 3852 (104th Congress, 1995–1996)

Text of the Comprehensive Methamphetamine Control Act of 1996

This bill was introduced in a previous session of Congress and was passed by the House on September 26, 1996 but was never passed by the Senate. The text of the bill below is as of Sep 26, 1996 (Passed the House (Engrossed)).

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HR 3852 EH

104th CONGRESS

2d Session

H. R. 3852


AN ACT

To prevent the illegal manufacturing and use of methamphetamine.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) SHORT TITLE- This Act may be cited as the ‘Comprehensive Methamphetamine Control Act of 1996’.

    (b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

      Sec. 1. Short title and table of contents.

TITLE I--IMPORTATION OF METHAMPHETAMINE AND PRECURSOR CHEMICALS

      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.

      Sec. 210. Withdrawal of regulations.

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.

TITLE I--IMPORTATION OF METHAMPHETAMINE AND PRECURSOR CHEMICALS

SEC. 101. SUPPORT FOR INTERNATIONAL EFFORTS TO CONTROL DRUGS.

    The Attorney General, in consultation with the Secretary of State, shall coordinate international drug enforcement efforts to decrease the movement of methamphetamine 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 inserting ‘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 Controlled 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 distribute, or distributes a listed chemical in violation of section 959 of this title.’.

TITLE II--PROVISIONS TO CONTROL 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 authority 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 suspended, 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 inserting ‘drug, narcotic, or chemical’ each place it appears; and

      (2) in subsection (c), by striking ‘drug or narcotic’ 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 follows:

    ‘(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 METHAMPHETAMINE PRODUCTION.

    (a) STUDY- The Attorney General of the United States shall conduct a study on possible measures to effectively prevent the diversion of red phosphorous, iodine, hydrochloric gas, and other agents for use in the production of methamphetamine. Nothing in this section shall preclude the Attorney General from taking any action the Attorney 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 subsection (a) on the need for and advisability of preventive measures.

    (c) CONSIDERATIONS- In developing recommendations under subsection (b), the Attorney General shall consider--

      (1) the use of red phosphorous, iodine, hydrochloric gas, and other agents in the illegal manufacture of methamphetamine;

      (2) the use of red phosphorous, iodine, hydrochloric gas, and other agents for legal purposes, and the impact any regulations may have on these purposes; and

      (3) comments and recommendations from law enforcement, manufacturers of such chemicals, and the consumers of such chemicals for 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 violates paragraph (6) or (7) of subsection (a), if the controlled substance is methamphetamine, shall be sentenced to a term of imprisonment of not more than 10 years, a fine under title 18, United States Code, 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 listed chemicals,

    has become final, such person shall be sentenced to a term of imprisonment of not more than 20 years, a fine under title 18, United States Code, or both.’.

    (b) SENTENCING COMMISSION- The United States Sentencing Commission shall amend the sentencing guidelines to ensure that the manufacture of methamphetamine in violation of section 403(d)(2) of the Controlled Substances Act, as added by subsection (a), is adequately punished.

    (c) TECHNICAL AMENDMENT- Section 403(d) of the Controlled Substances Act (21 U.S.C. 843(d)) is amended--

      (1) by striking ‘of not more than $30,000’ and inserting ‘under title 18, United States Code’; and

      (2) by striking ‘of not more than $60,000’ and inserting ‘under title 18, United States Code’.

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 the end the following:

        ‘(I) Iodine.

        ‘(J) Hydrochloric gas.’.

    (b) IMPORTATION AND EXPORTATION REQUIREMENTS- (1) Iodine shall not be subject to the requirements for listed chemicals provided 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 Import and Export Act (21 U.S.C. 971).

SEC. 205. CIVIL PENALTIES FOR FIRMS THAT SUPPLY PRECURSOR 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 person 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 Attorney General, which contains chemicals, products, materials, or equipment used in the manufacture of controlled substances and listed chemicals. For purposes of paragraph (11), there is a rebuttable presumption of reckless disregard at trial if the Attorney General notifies a firm in writing that a laboratory supply sold by the firm, or any other person or firm, has been used by a customer, or distributed further by that customer, for the unlawful production of controlled substances or listed chemicals a firm distributes and 2 weeks or more after the notification the notified firm distributes a laboratory supply to the customer.’.

    (b) CIVIL PENALTY- Section 402(c)(2) of the Controlled 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 elsewhere in this title or title III, any business that violates paragraph (11) of subsection (a) shall, with respect 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 authorized 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 pursuant to this subsection shall be tailored to restrain violations 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 governed 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 following:

    ‘(q) The court, when sentencing a defendant convicted 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 United 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 transaction.’.

SEC. 209. TECHNICAL AMENDMENTS.

    Section 102 of the Controlled Substances Act (21 U.S.C. 802) is amended--

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

        ‘(P) Isosafrole.

        ‘(S) N-Methylephedrine.

        ‘(U) Hydriodic acid.’; and

      (2) in paragraph (35), by amending subparagraph (G) to read as follows:

        ‘(G) 2-Butanone (or Methyl Ethyl Ketone).’.

SEC. 210. WITHDRAWAL OF REGULATIONS.

    The final rule concerning removal of exemption for certain pseudoephedrine products marketed under the Federal Food, Drug, and Cosmetic Act published in the Federal Register on August 7, 1996 (61 FR 40981-40993) is null and void and of no force or effect.

TITLE III--INCREASED PENALTIES 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 methamphetamine,’ and inserting ‘50 grams or more of methamphetamine,’; and

        (B) striking ‘1 kilogram or more of a mixture or substance containing a detectable amount of methamphetamine’ and inserting ‘500 grams or more of a mixture or substance containing a detectable amount of methamphetamine’.

      (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 methamphetamine,’ and inserting ‘5 grams or more of methamphetamine,’; and

        (B) striking ‘100 grams or more of a mixture or substance containing a detectable amount of methamphetamine’ and inserting ‘50 grams or more of a mixture or substance containing a detectable amount of methamphetamine’.

    (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 methamphetamine,’ and inserting ‘50 grams or more of methamphetamine,’; and

        (B) striking ‘1 kilogram or more of a mixture or substance containing a detectable amount of methamphetamine’ and inserting ‘500 grams or more of a mixture or substance containing a detectable amount of methamphetamine’.

      (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 amended by--

        (A) striking ‘10 grams or more of methamphetamine,’ and inserting ‘5 grams or more of methamphetamine,’; and

        (B) striking ‘100 grams or more of a mixture or substance containing a detectable amount of methamphetamine’ and inserting ‘50 grams or more of a mixture or substance containing a detectable amount of methamphetamine’.

SEC. 302. PENALTY INCREASES FOR TRAFFICKING IN LISTED 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 substance 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 produced under subsection (b).’.

    (b) CONTROLLED SUBSTANCE IMPORT AND EXPORT ACT- Section 1010(d) of the Controlled Substance Import 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 clandestine setting using the quantity of list I chemicals imported, the penalty corresponding to the quantity of controlled substance that could have been produced under title II.’.

    (c) DETERMINATION OF QUANTITY-

      (1) IN GENERAL- For the purposes of this section and the amendments made by this section, the quantity of controlled substance that could reasonably have been manufactured 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 Sentencing Commission based on scientific, law enforcement, and other data the Sentencing Commission deems appropriate; and

        (B) dispositive of this issue.

SEC. 303. ENHANCED PENALTY FOR DANGEROUS HANDLING 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 an offense described in subsection (b) and, if not, promulgate guidelines or amend existing guidelines to provide an appropriate enhancement of the punishment for a defendant convicted of that 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)), if in the commission of the offense the defendant violated--

      (1) subsection (d) or (e) of section 3008 of the Solid Waste Disposal Act (relating to handling hazardous waste in a manner inconsistent with Federal or applicable State law);

      (2) section 103(b) of the Comprehensive Environmental 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 unlawful 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 hazardous substance into the water); or

      (4) section 5124 of title 49, United States Code (relating to violations of laws and regulations enforced by the Department of Transportation with respect to the transportation of hazardous material).

TITLE IV--LEGAL MANUFACTURE, DISTRIBUTION, AND SALE OF PRECURSOR CHEMICALS

SEC. 401. DIVERSION OF CERTAIN PRECURSOR CHEMICALS.

    (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 Attorney 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 inserting before the semicolon the following: ‘, except that any sale of ordinary over-the-counter pseudoephedrine, phenylpropanolamine, or combination ephedrine products by retail distributors shall not be a regulated transaction (except as provided in section 401(d) of the Comprehensive Methamphetamine 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, phenylpropanolamine, 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 phenylpropanolamine, or 24 grams of ephedrine in a single 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 combination ephedrine product’ means any product containing pseudoephedrine, phenylpropanolamine, or ephedrine (where the ephedrine is combined with therapeutically significant quantities of another active medicinal ingredient) 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, 3.0 grams of phenylpropanolamine base or 2.0 grams of ephedrine base, and that is packaged in blister packs, each blister containing not more than two dosage 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 distributor relating to pseudoephedrine, phenylpropanolamine, or combination ephedrine products are limited almost exclusively to sales for personal use, both in number of sales and volume of sales, either 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 quantities in a single transaction to an individual for legitimate 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 entity within SIC codes 5300 through 5399 and 5499.

        ‘(iii) A drug store is an entity within SIC code 5912.

      ‘(47) The term ‘combination ephedrine product’ 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 EXEMPTION- 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 RESPECT TO EPHEDRINE, PSEUDOEPHEDRINE, AND PHENYLPROPANOLAMINE DRUG PRODUCTS- Pursuant to subsection (d)(1), the Attorney General shall by regulation reinstate the exemption with respect to a particular ephedrine, pseudoephedrine, or phenylpropanolamine drug product if the Attorney General determines that the drug product is manufactured and distributed in a manner that prevents 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 subject to the requirements of clause (ii), the Attorney General may establish by regulation a single-transaction limit of 24 grams of pseudoephedrine base for retail distributors. 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 establish a single-transaction limit of 24 grams of pseudoephedrine base, the Attorney General shall determine, following notice, 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 Controlled 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 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 business 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 business 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 occurring 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 subsequent 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 subject to the requirements of clause (ii), the Attorney General may establish by regulation a single-transaction limit of 24 grams of phenylpropanolamine base for retail distributors. Notwithstanding any other provision of law, the single-transaction threshold quantity for phenylpropanolamine-containing compounds may not be lowered beyond that established in this paragraph.

          (ii) CONDITIONS- In order to establish a single-transaction limit of 24 grams of phenylpropanolamine base, the Attorney General shall determine, following notice, 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 phenylpropanolamine products as established in paragraph (45) of section 102 of the Controlled 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 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 business 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 business 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 occurring 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 subsequent 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 subject to the requirements of clause (ii), the Attorney General may establish by regulation a single-transaction limit of 24 grams of ephedrine base for retail distributors of combination ephedrine products. Notwithstanding 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 establish 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 date of the enactment of this Act there are a significant number of instances where ordinary over-the-counter combination ephredrine products as established in paragraph (45) of section 102 of the Controlled 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 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 business 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 business 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 occurring 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 subsequent 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 infrequent use, or use in insubstantial quantities, of ordinary 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 paragraph (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 paragraph (1)(A)(ii), paragraph (2)(A)(ii), or paragraph (3)(A)(ii), the Attorney General shall transmit a report 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 include the parent company of a business not involved in a direct sale regulated by this subsection.

      (6) JUDICIAL REVIEW- Any regulation promulgated 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, phenylpropanolamine, or combination ephedrine products (as defined in section 102(45) of the Controlled Substances Act, as added by this section) or for non-retail distributors, importers, or exporters.

    (f) EFFECTIVE DATE OF THIS SECTION- Notwithstanding any other provision of this Act, this section shall not apply to the sale of any pseudoephedrine, phenylpropanolamine, 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 following:

      ‘(3) MAIL ORDER REPORTING- (A) Each regulated person who engages in a transaction with a nonregulated person which--

        ‘(i) involves ephedrine, pseudoephedrine, or phenylpropanolamine (including drug products 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, containing 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;

        ‘(ii) the quantity and form of the ephedrine, 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 ‘Methamphetamine Interagency Task Force’ (referred to as the ‘interagency task force’) which shall consist of the following 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 Services or a designee.

      (5) 2 representatives of State and local law enforcement and regulatory agencies, to be selected by the Attorney General.

      (6) 2 representatives selected by the Secretary of Health and Human Services.

      (7) 5 nongovernmental experts in drug abuse prevention and treatment to be selected by the Attorney General.

    (b) RESPONSIBILITIES- The interagency task force shall be responsible for designing, implementing, and evaluating the education and prevention and treatment practices and strategies of the Federal Government with respect to methamphetamine and other synthetic stimulants.

    (c) MEETINGS- The interagency task force shall meet at least once every 6 months.

    (d) FUNDING- The administrative expenses of the interagency task force shall be paid out of existing Department of Justice appropriations.

    (e) FACA- The Federal Advisory Committee Act (5 U.S.C. App. 2) shall apply to the interagency task force.

    (f) TERMINATION- The interagency task force shall terminate 4 years after the date of enactment of this Act.

SEC. 502. PUBLIC HEALTH MONITORING.

    The Secretary of Health and Human Services shall develop a public health monitoring program to monitor methamphetamine abuse in the United States. The program shall include the collection and dissemination of data related to methamphetamine abuse which can be used by public health officials in policy development.

SEC. 503. PUBLIC-PRIVATE EDUCATION PROGRAM.

    (a) ADVISORY PANEL- The Attorney General shall establish an advisory panel consisting of an appropriate number of representatives from Federal, State, and local law enforcement and regulatory agencies with experience in investigating and prosecuting illegal transactions of precursor chemicals. The Attorney General shall convene the panel as often as necessary to develop and coordinate educational programs for wholesale and retail distributors of precursor chemicals and supplies.

    (b) CONTINUATION OF CURRENT EFFORTS- The Attorney General shall continue to--

      (1) maintain an active program of seminars and training to educate wholesale and retail distributors of precursor chemicals and supplies regarding the identification of suspicious transactions and their responsibility to report such transactions; and

      (2) provide assistance to State and local law enforcement and regulatory agencies to facilitate the establishment and maintenance of educational programs for distributors of precursor chemicals and supplies.

SEC. 504. SUSPICIOUS ORDERS TASK FORCE.

    (a) IN GENERAL- The Attorney General shall establish a ‘Suspicious Orders Task Force’ (the ‘Task Force’) which shall consist of--

      (1) appropriate personnel from the Drug Enforcement Administration (the ‘DEA’) and other Federal, State, and local law enforcement and regulatory agencies with the experience in investigating and prosecuting illegal transactions of listed chemicals and supplies; and

      (2) representatives from the chemical and pharmaceutical industry, including representatives from the DEA/Distributor Working Committee and the DEA/Pharmacy Working Committee.

    (b) RESPONSIBILITIES- The Task Force shall be responsible for developing proposals to define suspicious orders of listed chemicals, and particularly to develop quantifiable parameters which can be used by registrants in determining if an order is a suspicious order which must be reported to DEA. The quantifiable parameters to be addressed will include frequency of orders, deviations from prior orders, and size of orders. The Task Force shall also recommend provisions as to what types of payment practices or unusual business practices shall constitute prima facie suspicious orders. In evaluating the proposals, the Task Force shall consider effectiveness, cost and feasibility for industry and Government, an other relevant factors.

    (c) MEETINGS- The Task Force shall meet at least two times per year and at such other times as may be determined necessary by the Task Force.

    (d) REPORT- The Task Force shall present a report to the Attorney General on its proposals with regard to suspicious orders and the electronic reporting of suspicious orders within one year of the date of enactment of this Act. Copies of the report shall be forwarded to the Committees of the Senate and House of Representatives having jurisdiction over the regulation of listed chemical and controlled substances.

    (e) FUNDING- The administrative expenses of the Task Force shall be paid out of existing Department of Justice funds or appropriations.

    (f) FACA- The Federal Advisory Committee Act (5 U.S.C. App. 2) shall apply to the Task Force.

    (g) TERMINATION- The Task Force shall terminate upon presentation of its report to the Attorney General, or two years after the date of enactment of this Act, whichever is sooner.

Passed the House of Representatives September 26, 1996.

Attest:

Clerk.