[Congressional Record Volume 142, Number 129 (Wednesday, September 18, 1996)]
[Senate]
[Pages S10878-S10882]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


           COMPREHENSIVE METHAMPHETAMINE CONTROL ACT OF 1996

  The text of the bill (S. 1965) to prevent the illegal manufacturing 
and use of methamphetamine, as passed by the Senate on September 17, 
1996, is as follows:

                                S. 1965

       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.
Sec. 2. Findings.

    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. Penalty increases for trafficking in methamphetamine.
Sec. 302. Enhanced penalties for offenses involving certain 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.

     SEC. 2. FINDINGS.

       The Congress finds the following:
       (1) Methamphetamine is a very dangerous and harmful drug. 
     It is highly addictive and

[[Page S10879]]

     is associated with permanent brain damage in long-term users.
       (2) The abuse of methamphetamine has increased dramatically 
     since 1990. This increased use has led to devastating effects 
     on individuals and the community, including--
       (A) a dramatic increase in deaths associated with 
     methamphetamine ingestion;
       (B) an increase in the number of violent crimes associated 
     with methamphetamine ingestion; and
       (C) an increase in criminal activity associated with the 
     illegal importation of methamphetamine and precursor 
     compounds to support the growing appetite for this drug in 
     the United States.
       (3) Illegal methamphetamine manufacture and abuse presents 
     an imminent public health threat that warrants aggressive law 
     enforcement action, increased research on methamphetamine and 
     other substance abuse, increased coordinated efforts to 
     prevent methamphetamine abuse, and increased monitoring of 
     the public health threat methamphetamine presents to the 
     communities of the United States.
    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 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 to 
     facilitate the manufacture of 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 listed 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 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 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 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 of the notified firm, 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

[[Page S10880]]

     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 of 
     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. PENALTY INCREASES FOR TRAFFICKING IN 
                   METHAMPHETAMINE.

       (a) Directive to the United States Sentencing Commission.--
     Pursuant to its authority under section 994 of title 28, 
     United States Code, the United States Sentencing Commission 
     shall review and amend its guidelines and its policy 
     statements to provide for increased penalties for unlawful 
     manufacturing, importing, exporting, and trafficking of 
     methamphetamine, and other similar offenses, including 
     unlawful possession with intent to commit any of those 
     offenses, and attempt and conspiracy to commit any of those 
     offenses. The Commission shall submit to Congress 
     explanations therefor and any additional policy 
     recommendations for combating methamphetamine offenses.
       (b) In General.--In carrying out this section, the 
     Commission shall ensure that the sentencing guidelines and 
     policy statements for offenders convicted of offenses 
     described in subsection (a) and any recommendations submitted 
     under such subsection reflect the heinous nature of such 
     offenses, the need for aggressive law enforcement action to 
     fight such offenses, and the extreme dangers associated with 
     unlawful activity involving methamphetamine, including--
       (1) the rapidly growing incidence of methamphetamine abuse 
     and the threat to public safety such abuse poses;
       (2) the high risk of methamphetamine addiction;
       (3) the increased risk of violence associated with 
     methamphetamine trafficking and abuse; and
       (4) the recent increase in the illegal importation of 
     methamphetamine and precursor chemicals.

     SEC. 302. ENHANCED PENALTIES FOR OFFENSES INVOLVING CERTAIN 
                   LISTED CHEMICALS.

       (a) Controlled Substances Act.--Section 401(d) of the 
     Controlled Substances Act (21 U.S.C. 841(d)) is amended by 
     striking ``not more than 10 years,'' and inserting ``not more 
     than 20 years in the case of a violation of paragraph (1) or 
     (2) involving a list I chemical or not more than 10 years in 
     the case of a violation of this subsection other than a 
     violation of paragraph (1) or (2) involving a list I 
     chemical,''.
       (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 ``not more than 10 
     years,'' and inserting ``not more than 20 years in the case 
     of a violation of paragraph (1) or (3) involving a list I 
     chemical or not more than 10 years in the case of a violation 
     of this subsection other than a violation of paragraph (1) or 
     (3) involving a list I chemical,''.
       (c) Sentencing Guidelines.--
       (1) In general.--The United States Sentencing Commission 
     shall, in accordance with the procedures set forth in section 
     21(a) of the Sentencing Act of 1987, as though the authority 
     of that section had not expired, amend the sentencing 
     guidelines to increase by at least two levels the offense 
     level for offenses involving list I chemicals under--
       (A) section 401(d) (1) and (2) of the Controlled Substances 
     Act (21 U.S.C 841(d) (1) and (2)); and
       (B) section 1010(d) (1) and (3) of the Controlled Substance 
     Import and Export Act (21 U.S.C. 960(d) (1) and (3)).
       (2) Requirement.--In carrying out this subsection, the 
     Commission shall ensure that the offense levels for offenses 
     referred to in paragraph (1) are calculated proportionally on 
     the basis of the quantity of controlled substance that 
     reasonably could have been manufactured in a clandestine 
     setting using the quantity of the list I chemical possessed, 
     distributed, imported, or exported.

     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 the offenses 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 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 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 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 
     transaction (except as provided in section 401(d) of the 
     Comprehensive Methamphetamine Control Act of 1996)'';
       (2) in paragraph (39)(A)(iv)(II), by adding before the 
     semicolon the following: ``, except that the threshold for 
     any sale of products containing pseudoephedrine or 
     phenylpropanolamine 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 or 24 
     grams of phenylpropanolamine in a single transaction'';
       (3) by redesignating paragraph (43) relating to felony drug 
     offense as paragraph (44); and

[[Page S10881]]

       (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 
     phenylpropanolamine 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 or phenylpropanolamine 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.''.
       (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 establish, following notice, comment, 
     and an informal hearing that since the date of 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 establish, following notice, 
     comment, and an informal hearing, that since the date of 
     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 used as a significant 
     source of precursor chemicals for illegal manufacture of a 
     controlled substance in bulk.
       (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) Significant number of instances.--
       (A) In general.--For purposes of this subsection, isolated 
     or infrequent use, or use in insubstantial quantities, of 
     ordinary over-the-counter pseudoephedrine or 
     phenylpropanolamine, as defined in section 102(45) of the 
     Controlled Substances Act, as added by section 401(b) of this 
     Act, and sold at the retail level for the illicit manufacture 
     of methamphetamine or amphetamine may not be used by the 
     Attorney General as the basis for establishing the conditions 
     under paragraph (1)(A)(ii) of this subsection, with respect 
     to pseudoephedrine, and paragraph (2)(A)(ii) of this 
     subsection, with respect to phenylpropanolamine.
       (B) Considerations and report.--The Attorney General 
     shall--
       (i) in establishing a finding under paragraph (1)(A)(ii) or 
     (2)(A)(ii) of this subsection, 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 as provided in such paragraph; and
       (ii) upon establishing a finding, transmit a report to the 
     Committees on the Judiciary in both, respectively, the House 
     of Representatives and the Senate in which the Attorney 
     General will provide the factual basis for establishing the 
     new single transaction limits.
       (4) 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.
       (5) 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 or phenylpropanolamine 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) Combination Ephedrine Products.--
       (1) In general.--For the purposes of this section, 
     combination ephedrine products shall be treated the same as 
     pseudoephedrine products, except that--
       (A) a single transaction limit of 24 grams shall be 
     effective as of the date of enactment of this Act and shall 
     apply to sales of all combination ephedrine products, 
     notwithstanding the form in which those products are 
     packaged, made by retail distributors or distributors 
     required to submit a report under section 310(b)(3) of the 
     Controlled Substances Act (as added by section 402 of this 
     Act);
       (B) for regulated transactions for combination ephedrine 
     products other than sales described in subparagraph (A), the 
     transaction limit shall be--
       (i) 1 kilogram of ephedrine base, effective on the date of 
     enactment of this Act; or
       (ii) a threshold other than the threshold described in 
     clause (i), if established by the Attorney General not 
     earlier than 1 year after the date of enactment of this Act; 
     and
       (C) the penalties provided in subsection (d)(1)(B) of this 
     section shall take effect on the date of enactment of this 
     Act for any individual or business that violates the single 
     transaction limit of 24 grams for combination ephedrine 
     products.
       (2) Definition.--For the purposes of this section, 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.
       (g) Effective Date of This Section.--Notwithstanding any 
     other provision of this Act, this section shall not apply to 
     the sale of any pseudoephedrine or phenylpropanolamine 
     product prior to 12 months after the date of enactment of 
     this Act, except that, on application of a manufacturer of a 
     particular pseudoephedrine or phenylpropanolamine drug 
     product, the Attorney General may, in

[[Page S10882]]

     her sole discretion, extend such effective date up to an 
     additional six months. Notwithstanding any other provision of 
     law, the decision of the Attorney General on such an 
     application shall not be subject to judicial review.

     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.
       (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.

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