[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1002 Reported in Senate (RS)]

                                                       Calendar No. 495
112th CONGRESS
  2d Session
                                S. 1002

                          [Report No. 112-204]

     To prohibit theft of medical products, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 16, 2011

 Mr. Schumer (for himself, Mr. Kyl, Ms. Klobuchar, Mr. Brown of Ohio, 
 Mr. Whitehouse, Mr. Sessions, Mr. Graham, Mr. Coons, Mr. Bennet, Mr. 
     Lugar, Mr. Nelson of Florida, Mr. Casey, Mr. Blumenthal, Mr. 
   Lautenberg, Mrs. Hagan, Mr. Portman, Mr. Wyden, Mr. Menendez, Ms. 
 Ayotte, Mr. Wicker, Mr. Kirk, Mr. Cochran, Mr. Corker, Mr. Alexander, 
 Mr. Coats, Mrs. Gillibrand, Mr. Kohl, Mr. Brown of Massachusetts, Mr. 
   Roberts, Mr. Cornyn, Mr. Lee, Mrs. Feinstein, Mr. Coburn, and Mr. 
Hatch) introduced the following bill; which was read twice and referred 
                   to the Committee on the Judiciary

                            August 28, 2012

Reported, under authority of the order of the Senate of August 2, 2012, 
                    by Mr. Leahy, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
     To prohibit theft of medical products, and for other purposes.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Strengthening and Focusing 
Enforcement to Deter Organized Stealing and Enhance Safety Act of 
2011'' or the ``SAFE DOSES Act''.</DELETED>

<DELETED>SEC. 2. THEFT OF MEDICAL PRODUCTS.</DELETED>

<DELETED>    (a) In General.--Chapter 31 of title 18, United States 
Code, is amended by adding at the end the following:</DELETED>
<DELETED>``Sec. 670. Theft of medical products</DELETED>
<DELETED>    ``(a) Definitions.--In this section--</DELETED>
        <DELETED>    ``(1) the term `biological product' has the 
        meaning given the term in section 351 of the Public Health 
        Service Act (42 U.S.C. 262);</DELETED>
        <DELETED>    ``(2) the terms `device', `drug', `infant 
        formula', and `labeling' have the meanings given those terms in 
        section 201 of the Federal Food, Drug, and Cosmetic Act (21 
        U.S.C. 321);</DELETED>
        <DELETED>    ``(3) the term `medical food' has the meaning 
        given the term in section 5(b) of the Orphan Drug Act (21 
        U.S.C. 360ee(b)); and</DELETED>
        <DELETED>    ``(4) the term `medical product' means a drug, 
        biological product, device, medical food, or infant formula 
        that--</DELETED>
                <DELETED>    ``(A) is being stored for transportation, 
                or is being or has been transported, shipped, or 
                received; and</DELETED>
                <DELETED>    ``(B) has not yet been made available for 
                retail purchase by a customer at the time of the 
                relevant conduct described in subsection (b).</DELETED>
<DELETED>    ``(b) Offenses.--It shall be unlawful, using any means or 
facility of interstate or foreign commerce, or in or affecting 
interstate or foreign commerce, to knowingly--</DELETED>
        <DELETED>    ``(1) steal, take without authorization, embezzle, 
        carry away, or obtain by fraud or deception a medical product, 
        or attempt or conspire to do so;</DELETED>
        <DELETED>    ``(2) transport, handle, traffic in, or store a 
        stolen medical product, or attempt or conspire to do so; 
        or</DELETED>
        <DELETED>    ``(3) participate, in any way, in a scheme to 
        alter, forge, or falsify the labeling or documentation 
        (including documentation relating to origination or shipping) 
        of a stolen or expired medical product.</DELETED>
<DELETED>    ``(c) Penalties.--</DELETED>
        <DELETED>    ``(1) In general.--Any person that violates 
        subsection (b)--</DELETED>
                <DELETED>    ``(A) if the value of the medical product 
                or products is less than $5,000, shall be fined under 
                this title, imprisoned for not more than 3 years, or 
                both; and</DELETED>
                <DELETED>    ``(B) subject to paragraph (2), for any 
                other violation, shall be fined under this title, 
                imprisoned for not more than 20 years, or 
                both.</DELETED>
        <DELETED>    ``(2) Additional factors.--Any person that 
        violates subsection (b) shall be fined under this title and 
        imprisoned for not less than 1 year nor more than 20 years if--
        </DELETED>
                <DELETED>    ``(A) the value of the medical product or 
                products is not less than $5,000; and</DELETED>
                <DELETED>    ``(B) the--</DELETED>
                        <DELETED>    ``(i) person--</DELETED>
                                <DELETED>    ``(I) buys, or otherwise 
                                obtains, a medical product, knowing or 
                                with reckless disregard as to whether 
                                the medical product is expired or has 
                                been stolen, with the intent to sell or 
                                distribute the medical 
                                product;</DELETED>
                                <DELETED>    ``(II) sells, or 
                                distributes, a medical product, knowing 
                                or with reckless disregard as to 
                                whether the medical product is expired 
                                or has been stolen; or</DELETED>
                                <DELETED>    ``(III) at the time of the 
                                violation is employed by, or is an 
                                agent of, an organization in the supply 
                                chain from which the stolen or expired 
                                medical products were removed, 
                                including a manufacturer, wholesaler, 
                                repacker, own-label distributor, 
                                private-label distributor, jobber, 
                                broker, drug trader, transportation 
                                company, hospital, pharmacy, or 
                                security company; or</DELETED>
                        <DELETED>    ``(ii) violation--</DELETED>
                                <DELETED>    ``(I) involves the use of 
                                violence, force, or a threat of 
                                violence or force;</DELETED>
                                <DELETED>    ``(II) involves the use of 
                                a deadly weapon;</DELETED>
                                <DELETED>    ``(III) results in injury, 
                                including the injury of deprivation of 
                                treatment, or death caused by ingestion 
                                or use of a stolen or expired medical 
                                product; or</DELETED>
                                <DELETED>    ``(IV) is the second or 
                                subsequent offense under subsection (b) 
                                committed by the person.</DELETED>
        <DELETED>    ``(3) Civil penalties.--</DELETED>
                <DELETED>    ``(A) In general.--The Attorney General 
                may bring a civil action in an appropriate United 
                States district court against any person that engages 
                in conduct that violates subsection (b).</DELETED>
                <DELETED>    ``(B) Penalty.--In a civil action brought 
                under subparagraph (A) the court may impose a civil 
                penalty in an amount not more than the greater of 3 
                times the economic loss attributable to the violation 
                or $1,000,000.''.</DELETED>
<DELETED>    (b) Civil Forfeiture.--Section 981(a)(1)(C) of title 18, 
United States Code, is amended by inserting ``670,'' after 
``657,''.</DELETED>
<DELETED>    (c) Technical and Conforming Amendment.--The table of 
sections for chapter 31 of title 18, United States Code, is amended by 
adding after the item relating to section 669 the following:</DELETED>

<DELETED>``670. Theft of medical products.''.

<DELETED>SEC. 3. PENALTIES FOR THEFT-RELATED OFFENSES.</DELETED>

<DELETED>    (a) Interstate or Foreign Shipments by Carrier.--Section 
659 of title 18, United States Code, is amended in the fifth 
undesignated paragraph, by striking ``10 years'' and inserting ``20 
years''.</DELETED>
<DELETED>    (b) Racketeering.--Chapter 95 of title 18, United States 
Code, is amended--</DELETED>
        <DELETED>    (1) in section 1952(a)(3)(A), by striking ``5 
        years'' and inserting ``20 years''; and</DELETED>
        <DELETED>    (2) in section 1957(b)(1), by striking ``ten 
        years'' and inserting ``20 years''.</DELETED>
<DELETED>    (c) Breaking or Entering Carrier Facilities.--Section 2117 
of title 18, United States Code, is amended in the first undesignated 
paragraph by striking ``ten years'' and inserting ``20 
years''.</DELETED>
<DELETED>    (d) Stolen Property.--Chapter 113 of title 18, United 
States Code, is amended--</DELETED>
        <DELETED>    (1) in section 2314, in the sixth undesignated 
        paragraph, by striking ``ten years'' and inserting ``20 
        years''; and</DELETED>
        <DELETED>    (2) in section 2315, in the fourth undesignated 
        paragraph, by striking ``ten years'' and inserting ``20 
        years''.</DELETED>

<DELETED>SEC. 4. AMENDMENT TO RICO.</DELETED>

<DELETED>    Section 1961(1)(B) of title 18, United States Code, is 
amended by inserting ``, section 670 (relating to theft of medical 
products)'' before ``, sections 891''.</DELETED>

<DELETED>SEC. 5. AMENDMENT TO TITLE III.</DELETED>

<DELETED>    Section 2516(1) of title 18, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) by redesignating paragraph (s) as paragraph 
        (t); and</DELETED>
        <DELETED>    (2) by inserting after paragraph (r) the 
        following:</DELETED>
        <DELETED>    ``(s) any violation of section 670 (relating to 
        theft of medical products).''.</DELETED>

<DELETED>SEC. 6. AMENDMENT TO ORDER OF RESTITUTION.</DELETED>

<DELETED>    Section 3663A(c)(1)(A) of title 18, United States Code, is 
amended--</DELETED>
        <DELETED>    (1) in clause (ii), by striking ``or'' at the 
        end;</DELETED>
        <DELETED>    (2) in clause (iii), by striking ``and'' at the 
        end and inserting ``or''; and</DELETED>
        <DELETED>    (3) by adding at the end the following:</DELETED>
                <DELETED>    ``(iv) an offense under section 670 
                (relating to theft of medical products); 
                and''.</DELETED>

<DELETED>SEC. 7. DIRECTIVE TO UNITED STATES SENTENCING 
              COMMISSION.</DELETED>

<DELETED>    Pursuant to its authority under section 994 of title 28, 
United States Code, and in accordance with this Act, the United States 
Sentencing Commission shall review and, if appropriate, amend the 
Federal Sentencing Guidelines and policy statements applicable to a 
person convicted of an offense under section 2118 of title 18, United 
States Code, section 670 of title 18, United States Code, as added by 
this Act, or other section of title 18 of the United States Code, 
amended by this Act.</DELETED>

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Safe Doses Act''.

SEC. 2. THEFT OF MEDICAL PRODUCTS.

    (a) Prohibited Conduct and Penalties.--Chapter 31 of title 18, 
United States Code, is amended by adding at the end the following:
``Sec. 670. Theft of medical products
    ``(a) Prohibited Conduct.--Whoever, in, or using any means or 
facility of, interstate or foreign commerce--
            ``(1) embezzles, steals, or by fraud or deception obtains, 
        or knowingly and unlawfully takes, carries away, or conceals, a 
        pre-retail medical product;
            ``(2) knowingly and falsely makes, alters, forges, or 
        counterfeits the labeling or documentation (including 
        documentation relating to origination or shipping) of a pre-
        retail medical product;
            ``(3) knowingly possesses, transports, or traffics in a 
        pre-retail medical product that was involved in a violation of 
        paragraph (1) or (2);
            ``(4) with intent to defraud, buys, or otherwise obtains, a 
        pre-retail medical product that has expired or been stolen;
            ``(5) with intent to defraud, sells, or distributes, a pre-
        retail medical product that is expired or stolen; or
            ``(6) attempts or conspires to violate any of paragraphs 
        (1) through (5);
shall be punished as provided in subsection (c) and subject to the 
other sanctions provided in this section.
    ``(b) Aggravated Offenses.--An offense under this section is an 
aggravated offense if --
            ``(1) the defendant is employed by, or is an agent of, an 
        organization in the supply chain for the pre-retail medical 
        product; or
            ``(2) the violation--
                    ``(A) involves the use of violence, force, or a 
                threat of violence or force;
                    ``(B) involves the use of a deadly weapon;
                    ``(C) results in serious bodily injury or death, 
                including serious bodily injury or death resulting from 
                the use of the medical product involved; or
                    ``(D) is subsequent to a prior conviction for an 
                offense under this section.
    ``(c) Criminal Penalties.--Whoever violates subsection (a)--
            ``(1) if the offense is an aggravated offense under 
        subsection (b)((2)(C), shall be fined under this title or 
        imprisoned not more than 30 years, or both;
            ``(2) if the value of the medical products involved in the 
        offense is $5,000 or greater, shall be fined under this title, 
        imprisoned for not more than 15 years, or both, but if the 
        offense is an aggravated offense other than one under 
        subsection (b)(2)(C), the maximum term of imprisonment is 20 
        years; and
            ``(3) in any other case, shall be fined under this title, 
        imprisoned for not more than 3 years, or both, but if the 
        offense is an aggravated offense other than one under 
        subsection (b)(2)(C), the maximum term of imprisonment is 5 
        years.
    ``(d) Civil Penalties.--Whoever violates subsection (a) is subject 
to a civil penalty in an amount not more than the greater of--
            ``(1) three times the economic loss attributable to the 
        violation; or
            ``(2) $1,000,000.
    ``(e) Definitions.--In this section--
            ``(1) the term `pre-retail medical product' means a medical 
        product that has not yet been made available for retail 
        purchase by a consumer;
            ``(2) the term `medical product' means a drug, biological 
        product, device, medical food, or infant formula;
            ``(3) the terms `device', `drug', `infant formula', and 
        `labeling' have, respectively, the meanings given those terms 
        in section 201 of the Federal Food, Drug, and Cosmetic Act;
            ``(4) the term `biological product' has the meaning given 
        the term in section 351 of the Public Health Service Act;
            ``(5) the term `medical food' has the meaning given the 
        term in section 5(b) of the Orphan Drug Act; and
            ``(6) the term `supply chain' includes manufacturer, 
        wholesaler, repacker, own-labeled distributor, private-label 
        distributor, jobber, broker, drug trader, transportation 
        company, hospital, pharmacy, or security company.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 31 of title 18, United States Code, is amended by adding after 
the item relating to section 669 the following:

``670. Theft of medical products.''.

SEC. 3. CIVIL FORFEITURE.

    Section 981(a)(1)(C) of title 18, United States Code, is amended by 
inserting ``670,'' after ``657,''.

SEC. 4. PENALTIES FOR THEFT-RELATED OFFENSES.

    (a) Interstate or Foreign Shipments by Carrier.--Section 659 of 
title 18, United States Code, is amended by adding at the end of the 
fifth undesignated paragraph the following: ``If the offense involves a 
pre-retail medical product (as defined in section 670), it shall be 
punished under section 670 unless the penalties provided for under this 
section are greater.''.
    (b) Racketeering.--
            (1) Travel act violations.--Section 1952 of title 18, 
        United States Code, is amended by adding that the end the 
        following:
    ``(d) If the offense under this section involves an act described 
in paragraph (1) or (3) of subsection (a) and also involves a pre-
retail medical product (as defined in section 670), the punishment for 
the offense shall be the same as the punishment for an offense under 
section 670, unless the punishment under subsection (a) is greater.''.
            (2) Money laundering.--Section 1957(b)(1) of title 18, 
        United States Code, is amended by adding at the end the 
        following: ``If the offense involves a pre-retail medical 
        product (as defined in section 670) the punishment for the 
        offense shall be the same as the punishment for an offense 
        under section 670 unless the punishment under this subsection 
        is greater.''
    (c) Breaking or Entering Carrier Facilities.--Section 2117 of title 
18, United States Code, is amended by adding at the end of the first 
undesignated paragraph the following: ``If the offense involves a pre-
retail medical product (as defined in section 670) the punishment for 
the offense shall be the same as the punishment for an offense under 
section 670 unless the punishment under this section is greater.''.
    (d) Stolen Property.--
            (1) Transportation of stolen goods and related offenses.--
        Section 2314 of title 18, United States Code, is amended by 
        adding at the end of the sixth undesignated paragraph the 
        following: ``If the offense involves a pre-retail medical 
        product (as defined in section 670) the punishment for the 
        offense shall be the same as the punishment for an offense 
        under section 670 unless the punishment under this section is 
        greater.''.
            (2) Sale or receipt of stolen goods and related offenses.--
        Section 2315 of title 18, United States Code, is amended by 
        adding at the end of the fourth undesignated paragraph the 
        following: ``If the offense involves a pre-retail medical 
        product (as defined in section 670) the punishment for the 
        offense shall be the same as the punishment for an offense 
        under section 670 unless the punishment under this section is 
        greater.''.

SEC. 5. INCLUSION OF NEW OFFENSE AS RICO PREDICATE.

    Section 1961(1)(B) of title 18, United States Code, is amended by 
inserting ``, section 670 (relating to theft of medical products)'' 
before ``, sections 891''.

SEC. 6. AMENDMENT TO EXTEND WIRETAPPING AUTHORITY TO NEW OFFENSE.

    Section 2516(1) of title 18, United States Code, is amended--
            (1) by redesignating paragraph (s) as paragraph (t);
            (2) by striking ``or'' at the end of paragraph (r); and
            (3) by inserting after paragraph (r) the following:
            ``(s) any violation of section 670 (relating to theft of 
        medical products); or''.

SEC. 7. REQUIRED RESTITUTION.

    Section 3663A(c)(1)(A) of title 18, United States Code, is 
amended--
            (1) in clause (ii), by striking ``or'' at the end;
            (2) in clause (iii), by striking ``and'' at the end and 
        inserting ``or''; and
            (3) by adding at the end the following:
                    ``(iv) an offense under section 670 (relating to 
                theft of medical products); and''.

SEC. 8. DIRECTIVE TO THE UNITED STATES SENTENCING COMMISSION.

    (a) In General.--Pursuant to its authority under section 994 of 
title 28, United States Code, and in accordance with this section, the 
United States Sentencing Commission shall review and, if appropriate, 
amend the Federal sentencing guidelines and policy statements 
applicable to persons convicted of offenses under section 670 of title 
18, United States Code, as added by this Act, section 2118 of title 18, 
United States Code, or any another section of title 18, United States 
Code, amended by this Act, to reflect the intent of Congress that 
penalties for such offenses be sufficient to deter and punish such 
offenses, and appropriately account for the actual harm to the public 
from these offenses.
    (b) Requirements.--In carrying out this section, the United States 
Sentencing Commission shall--
            (1) consider the extent to which the Federal sentencing 
        guidelines and policy statements appropriately reflect--
                    (A) the serious nature of such offenses;
                    (B) the incidence of such offenses; and
                    (C) the need for an effective deterrent and 
                appropriate punishment to prevent such offenses;
            (2) consider establishing a minimum offense level under the 
        Federal sentencing guidelines and policy statements for 
        offenses covered by this Act;
            (3) account for any additional aggravating or mitigating 
        circumstances that might justify exceptions to the generally 
        applicable sentencing ranges;
            (4) ensure reasonable consistency with other relevant 
        directives, Federal sentencing guidelines and policy 
        statements;
            (5) make any necessary conforming changes to the Federal 
        sentencing guidelines and policy statements; and
            (6) ensure that the Federal sentencing guidelines and 
        policy statements adequately meet the purposes of sentencing 
        set forth in section 3553(a)(2) of title 18, United States 
        Code.
                                                       Calendar No. 495

112th CONGRESS

  2d Session

                                S. 1002

                          [Report No. 112-204]

_______________________________________________________________________

                                 A BILL

     To prohibit theft of medical products, and for other purposes.

_______________________________________________________________________

                            August 28, 2012

                       Reported with an amendment