[House Report 109-299]
[From the U.S. Government Publishing Office]



109th Congress                                            Rept. 109-299
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 2

======================================================================



 
                METHAMPHETAMINE EPIDEMIC ELIMINATION ACT

                                _______
                                

               November 17, 2005.--Ordered to be printed

                                _______
                                

    Mr. Barton of Texas, from the Committee on Energy and Commerce, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 3889]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 3889) to further regulate and punish illicit 
conduct relating to methamphetamine, and for other purposes, 
having considered the same, report favorably thereon with 
amendments and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     1
Purpose and Summary..............................................     9
Background and Need for Legislation..............................     9
Hearings.........................................................    11
Committee Consideration..........................................    11
Committee Votes..................................................    11
Committee Oversight Findings.....................................    11
Statement of General Performance Goals and Objectives............    11
New Budget Authority, Entitlement Authority, and Tax Expenditures    12
Committee Cost Estimate..........................................    12
Congressional Budget Office Estimate.............................    12
Federal Mandates Statement.......................................    16
Advisory Committee Statement.....................................    16
Constitutional Authority Statement...............................    16
Applicability to Legislative Branch..............................    16
Section-by-Section Analysis of the Legislation...................    16
Changes in Existing Law Made by the Bill, as Reported............    24
Exchange of Committee Correspondence.............................    42

                               Amendment

    The amendments are as follows:
    Strike title I and insert the following (and conform the 
table of contents accordingly):

          TITLE I--DOMESTIC REGULATION OF PRECURSOR CHEMICALS

SEC. 101. SCHEDULED LISTED CHEMICAL PRODUCTS; RESTRICTIONS ON SALES 
                    QUANTITY, BEHIND-THE-COUNTER ACCESS, AND OTHER 
                    SAFEGUARDS.

  (a) Scheduled Listed Chemical Products.--
          (1) In general.--Section 102 of the Controlled Substances Act 
        (21 U.S.C. 802) is amended--
                  (A) by redesignating paragraph (46) as paragraph 
                (49); and
                  (B) by inserting after paragraph (44) the following 
                paragraphs:
  ``(45)(A) The term `scheduled listed chemical product' means, subject 
to subparagraph (B), a product that--
          ``(i) contains ephedrine, pseudoephedrine, or 
        phenylpropanolamine; and
          ``(ii) may be marketed or distributed lawfully in the United 
        States under the Federal, Food, Drug, and Cosmetic Act as a 
        nonprescription drug.
Each reference in clause (i) to ephedrine, pseudoephedrine, or 
phenylpropanolamine includes each of the salts, optical isomers, and 
salts of optical isomers of such chemical.
  ``(B) Such term does not include a product described in subparagraph 
(A) if the product contains a chemical specified in such subparagraph 
that the Attorney General has under section 201(a) added to any of the 
schedules under section 202(c). In the absence of such scheduling by 
the Attorney General, a chemical specified in such subparagraph may not 
be considered to be a controlled substance.
  ``(46) The term `regulated seller' means a retail distributor 
(including a pharmacy or a mobile retail vendor), except that such term 
does not include an employee or agent of such distributor.
  ``(47) The term `mobile retail vendor' means a person or entity that 
makes sales at retail from a stand that is intended to be temporary, or 
is capable of being moved from one location to another, whether the 
stand is located within or on the premises of a fixed facility (such as 
a kiosk at a shopping center or an airport) or whether the stand is 
located on unimproved real estate (such as a lot or field leased for 
retail purposes).
  ``(48) The term `at retail', with respect to the sale or purchase of 
a scheduled listed chemical product, means a sale or purchase for 
personal use, respectively.''.
          (2) Conforming amendments.--The Controlled Substances Act (21 
        U.S.C. 801 et seq.) is amended--
                  (A) in section 102, in paragraph (49) (as 
                redesignated by paragraph (1)(A) of this subsection)--
                          (i) in subparagraph (A), by striking 
                        ``pseudoephedrine or'' and inserting 
                        ``ephedrine, pseudoephedrine, or''; and
                          (ii) by striking subparagraph (B) and 
                        redesignating subparagraph (C) as subparagraph 
                        (B); and
                  (B) in section 310(b)(3)(D)(ii), by striking 
                ``102(46)'' and inserting ``102(49)''.
  (b) Restrictions on Sales Quantity; Behind-the-Counter Access; 
Logbook Requirement; Training of Sales Personnel; Privacy 
Protections.--
          (1) In general.--Section 310 of the Controlled Substances Act 
        (21 U.S.C. 830) is amended by adding at the end the following 
        subsections:
  ``(d) Scheduled Listed Chemicals; Restrictions on Sales Quantity; 
Requirements Regarding Nonliquid Forms.--With respect to ephedrine 
base, pseudoephedrine base, or phenylpropanolamine base in a scheduled 
listed chemical product--
          ``(1) the quantity of such base sold at retail in such a 
        product by a regulated seller, or a distributor required to 
        submit reports by subsection (b)(3) may not, for any purchaser, 
        exceed a daily amount of 3.6 grams, without regard to the 
        number of transactions; and
          ``(2) such a seller or distributor may not sell such a 
        product in nonliquid form (including gell caps) at retail 
        unless the product is packaged in blister packs, each blister 
        containing not more than 2 dosage units, or where the use of 
        blister packs is technically infeasible, the product is 
        packaged in unit dose packets or pouches.
  ``(e) Scheduled Listed Chemicals; Behind-the-Counter Access; Logbook 
Requirement; Training of Sales Personnel; Privacy Protections.--
          ``(1) Requirements regarding retail transactions.--
                  ``(A) In general.--Each regulated seller shall ensure 
                that, subject to subparagraph (F), sales by such seller 
                of a scheduled listed chemical product at retail are 
                made in accordance with the following:
                          ``(i) In offering the product for sale, the 
                        seller places the product such that customers 
                        do not have direct access to the product before 
                        the sale is made (in this paragraph referred to 
                        as `behind-the-counter' placement). For 
                        purposes of this paragraph, a behind-the-
                        counter placement of a product includes 
                        circumstances in which the product is stored in 
                        a locked cabinet that is located in an area of 
                        the facility involved to which customers do 
                        have direct access.
                          ``(ii) The seller delivers the product 
                        directly into the custody of the purchaser.
                          ``(iii) The seller maintains, in accordance 
                        with criteria issued by the Attorney General, a 
                        written or electronic list of such sales that 
                        identifies the products by name, the quantity 
                        sold, the names and addresses of purchasers, 
                        and the dates and times of the sales (which 
                        list is referred to in this subsection as the 
                        `logbook'), except that such requirement does 
                        not apply to any purchase by an individual of a 
                        single sales package if that package contains 
                        not more than 60 milligrams of pseudoephedrine.
                          ``(iv) In the case of a sale to which the 
                        requirement of clause (iii) applies, the seller 
                        does not sell such a product unless--
                                  ``(I) the prospective purchaser--
                                          ``(aa) presents an 
                                        identification card that 
                                        provides a photograph and is 
                                        issued by a State or the 
                                        Federal Government, or a 
                                        document that, with respect to 
                                        identification, is considered 
                                        acceptable for purposes of 
                                        sections 274a.2(b)(1)(v)(A) and 
                                        274a.2(b)(1)(v)(B) of title 8, 
                                        Code of Federal Regulations (as 
                                        in effect on or after the date 
                                        of the enactment of the Combat 
                                        Methamphetamine Epidemic Act of 
                                        2005); and
                                          ``(bb) signs the logbook and 
                                        enters in the logbook his or 
                                        her name, address, and the date 
                                        and time of the sale; and
                                  ``(II) the seller--
                                          ``(aa) determines that the 
                                        name entered in the logbook 
                                        corresponds to the name 
                                        provided on such identification 
                                        and that the date and time 
                                        entered are correct; and
                                          ``(bb) enters in the logbook 
                                        the name of the product and the 
                                        quantity sold.
                          ``(v) The logbook includes, in accordance 
                        with criteria of the Attorney General, a notice 
                        to purchasers that entering false statements or 
                        misrepresentations in the logbook may subject 
                        the purchasers to criminal penalties under 
                        section 1001 of title 18, United States Code, 
                        which notice specifies the maximum fine and 
                        term of imprisonment under such section.
                          ``(vi) The seller maintains each entry in the 
                        logbook for not fewer than two years after the 
                        date on which the entry is made.
                          ``(vii) In the case of individuals who are 
                        responsible for delivering such products into 
                        the custody of purchasers or who deal directly 
                        with purchasers by obtaining payments for the 
                        products, the seller has submitted to the 
                        Attorney General a self-certification that all 
                        such individuals have, in accordance with 
                        criteria under subparagraph (B)(ii), undergone 
                        training provided by the seller to ensure that 
                        the individuals understand the requirements 
                        that apply under this subsection and subsection 
                        (d).
                          ``(viii) The seller maintains a copy of such 
                        certification and records demonstrating that 
                        individuals referred to in clause (vii) have 
                        undergone the training.
                          ``(ix) If the seller is a mobile retail 
                        vendor:
                                  ``(I) The seller complies with clause 
                                (i) by placing the product in a locked 
                                cabinet.
                                  ``(II) The seller does not sell more 
                                than 7.5 grams of ephedrine base, 
                                pseudoephedrine base, or 
                                phenylpropanolamine base in such 
                                products per customer during a 30-day 
                                period.
                  ``(B) Additional provisions regarding certifications 
                and training.--
                          ``(i) In general.--A regulated seller may not 
                        sell any scheduled listed chemical product at 
                        retail unless the seller has submitted to the 
                        Attorney General the self-certification 
                        referred to in subparagraph (A)(vii). The 
                        certification is not effective for purposes of 
                        the preceding sentence unless, in addition to 
                        provisions regarding the training of 
                        individuals referred to in such subparagraph, 
                        the certification includes a statement that the 
                        seller understands each of the requirements 
                        that apply under this paragraph and under 
                        subsection (d) and agrees to comply with the 
                        requirements.
                          ``(ii) Issuance of criteria; self-
                        certification.--The Attorney General shall by 
                        regulation establish criteria for 
                        certifications under this paragraph. The 
                        criteria shall--
                                  ``(I) provide that the certifications 
                                are self-certifications provided 
                                through the program under clause (iii);
                                  ``(II) provide that a separate 
                                certification is required for each 
                                place of business at which a regulated 
                                seller sells scheduled listed chemical 
                                products at retail; and
                                  ``(III) include criteria for training 
                                under subparagraph (A)(vii).
                          ``(iii) Program for regulated sellers.--The 
                        Attorney General shall establish a program 
                        regarding such certifications and training in 
                        accordance with the following:
                                  ``(I) The program shall be carried 
                                out through an Internet site of the 
                                Department of Justice and such other 
                                means as the Attorney General 
                                determines to be appropriate.
                                  ``(II) The program shall inform 
                                regulated sellers that section 1001 of 
                                title 18, United States Code, applies 
                                to such certifications.
                                  ``(III) The program shall make 
                                available to such sellers an 
                                explanation of the criteria under 
                                clause (ii).
                                  ``(IV) The program shall be designed 
                                to permit the submission of the 
                                certifications through such Internet 
                                site.
                                  ``(V) The program shall be designed 
                                to automatically provide the 
                                explanation referred to in subclause 
                                (III), and an acknowledgement that the 
                                Department has received a 
                                certification, without requiring direct 
                                interactions of regulated sellers with 
                                staff of the Department (other than the 
                                provision of technical assistance, as 
                                appropriate).
                          ``(iv) Availability of certification to state 
                        and local officials.--Promptly after receiving 
                        a certification under subparagraph (A)(vii), 
                        the Attorney General shall make available a 
                        copy of the certification to the appropriate 
                        State and local officials.
                  ``(C) Privacy protections.--In order to protect the 
                privacy of individuals who purchase scheduled listed 
                chemical products, the Attorney General shall by 
                regulation establish restrictions on disclosure of 
                information in logbooks under subparagraph (A)(iii). 
                Such regulations shall--
                          ``(i) provide for the disclosure of the 
                        information as appropriate to the Attorney 
                        General and to State and local law enforcement 
                        agencies; and
                          ``(ii) prohibit accessing, using, or sharing 
                        information in the logbooks for any purpose 
                        other than to ensure compliance with this title 
                        or to facilitate a product recall to protect 
                        public health and safety.
                  ``(D) False statements or misrepresentations by 
                purchasers.--For purposes of section 1001 of title 18, 
                United States Code, entering information in the logbook 
                under subparagraph (A)(iii) shall be considered a 
                matter within the jurisdiction of the executive, 
                legislative, or judicial branch of the Government of 
                the United States.
                  ``(E) Good faith protection.--A regulated seller who 
                in good faith releases information in a logbook under 
                subparagraph (A)(iii) to Federal, State, or local law 
                enforcement authorities is immune from civil liability 
                for such release unless the release constitutes gross 
                negligence or intentional, wanton, or willful 
                misconduct.
                  ``(F) Inapplicability of requirements to certain 
                sales.--Subparagraph (A) does not apply to the sale at 
                retail of a scheduled listed chemical product if a 
                report on the sales transaction is required to be 
                submitted to the Attorney General under subsection 
                (b)(3).
                  ``(G) Certain measures regarding theft and 
                diversion.--A regulated seller may take reasonable 
                measures to guard against employing individuals who may 
                present a risk with respect to the theft and diversion 
                of scheduled listed chemical products, which may 
                include, notwithstanding State law, asking applicants 
                for employment whether they have been convicted of any 
                crime involving or related to such products or 
                controlled substances.''.
          (2) Effective dates.--With respect to subsections (d) and 
        (e)(1) of section 310 of the Controlled Substances Act, as 
        added by paragraph (1) of this subsection:
                  (A) Such subsection (d) applies on and after the 
                expiration of the 30-day period beginning on the date 
                of the enactment of this Act.
                  (B) Such subsection (e)(1) applies on and after 
                September 30, 2006.
  (c) Mail-Order Reporting.--
          (1) In general.--Section 310(e) of the Controlled Substances 
        Act, as added by subsection (b)(1) of this section, is amended 
        by adding at the end the following:
          ``(2) Mail-order reporting; verification of identity of 
        purchaser; 30-day restriction on quantities for individual 
        purchasers.--Each regulated person who makes a sale at retail 
        of a scheduled listed chemical product and is required under 
        subsection (b)(3) to submit a report of the sales transaction 
        to the Attorney General is subject to the following:
                  ``(A) The person shall, prior to shipping the 
                product, confirm the identity of the purchaser in 
                accordance with procedures established by the Attorney 
                General. The Attorney General shall by regulation 
                establish such procedures.
                  ``(B) The person may not sell more than 7.5 grams of 
                ephedrine base, pseudoephedrine base, or 
                phenylpropanolamine base in such products per customer 
                during a 30-day period.''.
          (2) Inapplicability of reporting exemption for retail 
        distributors.--Section 310(b)(3)(D)(ii) of the Controlled 
        Substances Act (21 U.S.C. 830(b)(3)(D)(ii)) is amended by 
        inserting before the period the following: ``, except that this 
        clause does not apply to sales of scheduled listed chemical 
        products at retail''.
          (3) Effective date.--The amendments made by paragraphs (1) 
        and (2) apply on and after the expiration of the 30-day period 
        beginning on the date of the enactment of this Act.
  (d) Exemptions for Certain Products.--Section 310(e) of the 
Controlled Substances Act, as added and amended by subsections (b) and 
(c) of this section, respectively, is amended by adding at the end the 
following paragraph:
          ``(3) Exemptions for certain products.--Upon the application 
        of a manufacturer of a scheduled listed chemical product, the 
        Attorney General may by regulation provide that the product is 
        exempt from the provisions of subsection (d) and paragraphs (1) 
        and (2) of this subsection if the Attorney General determines 
        that the product cannot be used in the illicit manufacture of 
        methamphetamine.''.
  (e) Enforcement of Requirements for Retail Sales.--
          (1) Civil and criminal penalties.--
                  (A) In general.--Section 402(a) of the Controlled 
                Substances Act (21 U.S.C. 842(a)) is amended--
                          (i) in paragraph (10), by striking ``or'' 
                        after the semicolon;
                          (ii) in paragraph (11), by striking the 
                        period at the end and inserting a semicolon; 
                        and
                          (iii) by inserting after paragraph (11) the 
                        following paragraphs:
          ``(12) who is a regulated seller, or a distributor required 
        to submit reports under subsection (b)(3) of section 310--
                  ``(A) to sell at retail a scheduled listed chemical 
                product in violation of paragraph (1) of subsection (d) 
                of such section, knowing at the time of the transaction 
                involved (independent of consulting the logbook under 
                subsection (e)(1)(A)(iii) of such section) that the 
                transaction is a violation; or
                  ``(B) to knowingly or recklessly sell at retail such 
                a product in violation of paragraph (2) of such 
                subsection (d);
          ``(13) who is a regulated seller to knowingly or recklessly 
        sell at retail a scheduled listed chemical product in violation 
        of subsection (e) of such section; or
          ``(14) who is a regulated seller or an employee or agent of 
        such seller to disclose, in violation of regulations under 
        subparagraph (C) of section 310(e)(1), information in logbooks 
        under subparagraph (A)(iii) of such section, or to refuse to 
        provide such a logbook to Federal, State, or local law 
        enforcement authorities.''.
                  (B) Conforming amendment.--Section 401(f)(1) of the 
                Controlled Substances Act (21 U.S.C. 841(f)(1)) is 
                amended by inserting after ``shall'' the following: ``, 
                except to the extent that paragraph (12), (13), or (14) 
                of section 402(a) applies,''.
          (2) Authority to prohibit sales by violators.--Section 402(c) 
        of the Controlled Substances Act (21 U.S.C. 842(c)) is amended 
        by adding at the end the following paragraph:
  ``(4)(A) If a regulated seller, or a distributor required to submit 
reports under section 310(b)(3), violates paragraph (12) of subsection 
(a) of this section, or if a regulated seller violates paragraph (13) 
of such subsection, the Attorney General may by order prohibit such 
seller or distributor (as the case may be) from selling any scheduled 
listed chemical product. Any sale of such a product in violation of 
such an order is subject to the same penalties as apply under paragraph 
(2).
  ``(B) An order under subparagraph (A) may be imposed only through the 
same procedures as apply under section 304(c) for an order to show 
cause.''.
  (f) Preservation of State Authority to Regulate Scheduled Listed 
Chemicals.--This section and the amendments made by this section may 
not be construed as having any legal effect on section 708 of the 
Controlled Substances Act as applied to the regulation of scheduled 
listed chemicals (as defined in section 102(45) of such Act).

SEC. 102. REGULATED TRANSACTIONS.

  (a) Conforming Amendments Regarding Scheduled Listed Chemicals.--The 
Controlled Substances Act (21 U.S.C. 801 et seq.) is amended--
          (1) in section 102--
                  (A) in paragraph (39)(A)--
                          (i) by amending clause (iv) to read as 
                        follows:
                  ``(iv) any transaction in a listed chemical that is 
                contained in a drug that may be marketed or distributed 
                lawfully in the United States under the Federal Food, 
                Drug, and Cosmetic Act, subject to clause (v), unless--
                          ``(I) the Attorney General has determined 
                        under section 204 that the drug or group of 
                        drugs is being diverted to obtain the listed 
                        chemical for use in the illicit production of a 
                        controlled substance; and
                          ``(II) the quantity of the listed chemical 
                        contained in the drug included in the 
                        transaction or multiple transactions equals or 
                        exceeds the threshold established for that 
                        chemical by the Attorney General;'';
                          (ii) by redesignating clause (v) as clause 
                        (vi); and
                          (iii) by inserting after clause (iv) the 
                        following clause:
                  ``(v) any transaction in a scheduled listed chemical 
                product; or''; and
                  (B) by striking the paragraph (45) that relates to 
                the term ``ordinary over-the-counter pseudoephedrine or 
                phenylpropanolamine product'';
          (2) in section 204, by striking subsection (e); and
          (3) in section 303(h), in the second sentence, by striking 
        ``section 102(39)(A)(iv)'' and inserting ``clause (iv) or (v) 
        of section 102(39)(A)''.
  (b) Public Law 104-237.--Section 401 of the Comprehensive 
Methamphetamine Control Act of 1996 (21 U.S.C. 802 note) (Public Law 
104-237) is amended by striking subsections (d), (e), and (f).

SEC. 103. AUTHORITY TO ESTABLISH PRODUCTION QUOTAS.

  Section 306 of the Controlled Substances Act (21 U.S.C. 826) is 
amended--
          (1) in subsection (a), by inserting ``and for ephedrine, 
        pseudoephedrine, and phenylpropanolamine'' after ``for each 
        basic class of controlled substance in schedules I and II'';
          (2) in subsection (b), by inserting ``or for ephedrine, 
        pseudoephedrine, or phenylpropanolamine'' after ``for each 
        basic class of controlled substance in schedule I or II'';
          (3) in subsection (c), in the first sentence, by inserting 
        ``and for ephedrine, pseudoephedrine, and phenylpropanolamine'' 
        after ``for the basic classes of controlled substances in 
        schedules I and II'';
          (4) in subsection (d), by inserting ``or ephedrine, 
        pseudoephedrine, or phenylpropanolamine'' after ``that basic 
        class of controlled substance'';
          (5) in subsection (e), by inserting ``or for ephedrine, 
        pseudoephedrine, or phenylpropanolamine'' after ``for a basic 
        class of controlled substance in schedule I or II'';
          (6) in subsection (f)--
                  (A) by inserting ``or ephedrine, pseudoephedrine, or 
                phenylpropanolamine'' after ``controlled substances in 
                schedules I and II'';
                  (B) by inserting ``or of ephedrine, pseudoephedrine, 
                or phenylpropanolamine'' after ``the manufacture of a 
                controlled substance''; and
                  (C) by inserting ``or chemicals'' after ``such 
                incidentally produced substances''; and
          (7) by adding at the end the following subsection:
  ``(g) Each reference in this section to ephedrine, pseudoephedrine, 
or phenylpropanolamine includes each of the salts, optical isomers, and 
salts of optical isomers of such chemical.''.

SEC. 104. PENALTIES; AUTHORITY FOR MANUFACTURING; QUOTA.

  Section 402(b) of the Controlled Substances Act (21 U.S.C. 842(b)) is 
amended by inserting after ``manufacture a controlled substance in 
schedule I or II'' the following: ``, or ephedrine, pseudoephedrine, or 
phenylpropanolamine or any of the salts, optical isomers, or salts of 
optical isomers of such chemical,''

SEC. 105. RESTRICTIONS ON IMPORTATION; AUTHORITY TO PERMIT IMPORTS FOR 
                    MEDICAL, SCIENTIFIC, OR OTHER LEGITIMATE PURPOSES.

  Section 1002 of the Controlled Substances Import and Export Act (21 
U.S.C. 952) is amended--
          (1) in subsection (a)--
                  (A) in the matter preceding paragraph (1), by 
                inserting ``or ephedrine, pseudoephedrine, or 
                phenylpropanolamine,'' after ``schedule III, IV, or V 
                of title II,''; and
                  (B) in paragraph (1), by inserting ``, and of 
                ephedrine, pseudoephedrine, and phenylpropanolamine, '' 
                after ``coca leaves''; and
          (2) by adding at the end the following subsections:
  ``(d)(1) With respect to a registrant under section 1008 who is 
authorized under subsection (a)(1) to import ephedrine, 
pseudoephedrine, or phenylpropanolamine, at any time during the year 
the registrant may apply for an increase in the amount of such chemical 
that the registrant is authorized to import, and the Attorney General 
may approve the application if the Attorney General determines that the 
approval is necessary to provide for medical, scientific, or other 
legitimate purposes regarding the chemical.
  ``(2) With respect to the application under paragraph (1):
          ``(A) Not later than 60 days after receiving the application, 
        the Attorney General shall approve or deny the application.
          ``(B) In approving the application, the Attorney General 
        shall specify the period of time for which the approval is in 
        effect, or shall provide that the approval is effective until 
        the registrant involved is notified in writing by the Attorney 
        General that the approval is terminated.
          ``(C) If the Attorney General does not approve or deny the 
        application before the expiration of the 60-day period under 
        subparagraph (A), the application is deemed to be approved, and 
        such approval remains in effect until the Attorney General 
        notifies the registrant in writing that the approval is 
        terminated.
  ``(e) Each reference in this section to ephedrine, pseudoephedrine, 
or phenylpropanolamine includes each of the salts, optical isomers, and 
salts of optical isomers of such chemical.''.

SEC. 106. NOTICE OF IMPORTATION OR EXPORTATION; APPROVAL OF SALE OR 
                    TRANSFER BY IMPORTER OR EXPORTER.

  (a) In General.--Section 1018 of the Controlled Substances Import and 
Export Act (21 U.S.C. 971) is amended--
          (1) in subsection (b)(1), in the first sentence, by striking 
        ``or to an importation by a regular importer'' and inserting 
        ``or to a transaction that is an importation by a regular 
        importer'';
          (2) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively;
          (3) by inserting after subsection (c) the following 
        subsection:
  ``(d)(1)(A) Information provided in a notice under subsection (a) or 
(b) shall include the name of the person to whom the importer or 
exporter involved intends to transfer the listed chemical involved, and 
the quantity of such chemical to be transferred.
  ``(B) In the case of a notice under subsection (b) submitted by a 
regular importer, if the transferee identified in the notice is not a 
regular customer, such importer may not transfer the listed chemical 
until after the expiration of the 15-day period beginning on the date 
on which the notice is submitted to the Attorney General.
  ``(C) After a notice under subsection (a) or (b) is submitted to the 
Attorney General, if circumstances change and the importer or exporter 
will not be transferring the listed chemical to the transferee 
identified in the notice, or will be transferring a greater quantity of 
the chemical than specified in the notice, the importer or exporter 
shall update the notice to identify the most recent prospective 
transferee or the most recent quantity or both (as the case may be) and 
may not transfer the listed chemical until after the expiration of the 
15-day period beginning on the date on which the update is submitted to 
the Attorney General, except that such 15-day restriction does not 
apply if the prospective transferee identified in the update is a 
regular customer. The preceding sentence applies with respect to 
changing circumstances regarding a transferee or quantity identified in 
an update to the same extent and in the same manner as such sentence 
applies with respect to changing circumstances regarding a transferee 
or quantity identified in the original notice under subsection (a) or 
(b).
  ``(D) In the case of a transfer of a listed chemical that is subject 
to a 15-day restriction under subparagraph (B) or (C), the transferee 
involved shall, upon the expiration of the 15-day period, be considered 
to qualify as a regular customer, unless the Attorney General otherwise 
notifies the importer or exporter involved in writing.
  ``(2) With respect to a transfer of a listed chemical with which a 
notice or update referred to in paragraph (1) is concerned:
          ``(A) The Attorney General, in accordance with the same 
        procedures as apply under subsection (c)(2)--
                  ``(i) may order the suspension of the transfer of the 
                listed chemical by the importer or exporter involved, 
                except for a transfer to a regular customer, on the 
                ground that the chemical may be diverted to the 
                clandestine manufacture of a controlled substance 
                (without regard to the form of the chemical that may be 
                diverted, including the diversion of a finished drug 
                product to be manufactured from bulk chemicals to be 
                transferred), subject to the Attorney General ordering 
                such suspension before the expiration of the 15-day 
                period referred to in paragraph (1) with respect to the 
                importation or exportation (in any case in which such a 
                period applies); and
                  ``(ii) may, for purposes of clause (i) and paragraph 
                (1), disqualify a regular customer on such ground.
          ``(B) From and after the time when the Attorney General 
        provides written notice of the order under subparagraph (A) 
        (including a statement of the legal and factual basis for the 
        order) to the importer or exporter, the importer or exporter 
        may not carry out the transfer.
  ``(3) For purposes of this subsection:
          ``(A) The terms `importer' and `exporter' mean a regulated 
        person who imports or exports a listed chemical, respectively.
          ``(B) The term `transfer', with respect to a listed chemical, 
        includes the sale of the chemical.
          ``(C) The term `transferee' means a person to whom an 
        importer or exporter transfers a listed chemical.''; and
          (4) by adding at the end the following subsection:
  ``(g) Within 30 days after a transaction covered by this section is 
completed, the importer or exporter shall send the Attorney General a 
return declaration containing particulars of the transaction, including 
the date, quantity, chemical, container, name of transferees, and such 
other information as the Attorney General may specify in regulations. 
For importers, a single return declaration may include the particulars 
of both the importation and distribution. If the importer has not 
distributed all chemicals imported by the end of the initial 30-day 
period, the importer shall file supplemental return declarations no 
later than 30 days from the date of any further distribution, until the 
distribution or other disposition of all chemicals imported pursuant to 
the import notification or any update are accounted for.''.
  (b) Conforming Amendments.--
          (1) Controlled substances import and export act.--The 
        Controlled Substances Import and Export Act (21 U.S.C. 951 et 
        seq.) is amended--
                  (A) in section 1010(d)(5), by striking ``section 
                1018(e)(2) or (3)'' and inserting ``paragraph (2) or 
                (3) of section 1018(f)''; and
                  (B) in section 1018(c)(1), in the first sentence, by 
                inserting before the period the following: ``(without 
                regard to the form of the chemical that may be 
                diverted, including the diversion of a finished drug 
                product to be manufactured from bulk chemicals to be 
                transferred)''.
          (2) Controlled substances act.--Section 310(b)(3)(D)(v) of 
        the Controlled Substances Act (21 U.S.C. 830(b)(3)(D)(v)) is 
        amended by striking ``section 1018(e)(2)'' and inserting 
        ``section 1018(f)(2)''.

SEC. 107. ENFORCEMENT OF RESTRICTIONS ON IMPORTATION AND OF REQUIREMENT 
                    OF NOTICE OF TRANSFER.

  Section 1010(d)(6) of the Controlled Substances Import and Export Act 
(21 U.S.C. 960(d)(6)) is amended to read as follows:
          ``(6) imports a listed chemical in violation of section 1002, 
        imports or exports such a chemical in violation of section 1007 
        or 1018, or transfers such a chemical in violation of section 
        1018(d); or''.

SEC. 108. COORDINATION WITH UNITED STATES TRADE REPRESENTATIVE.

  In implementing sections 103 through 107 and section 201 of this Act, 
the Attorney General shall consult with the United States Trade 
Representative to ensure implementation complies with all applicable 
international treaties and obligations of the United States.

  Strike title IV and insert the following (and conform the 
table of contents accordingly):

   TITLE IV--ENHANCED ENVIRONMENTAL REGULATION OF METHAMPHETAMINE BY-
                                PRODUCTS

SEC. 401. BIENNIAL REPORT TO CONGRESS ON AGENCY DESIGNATIONS OF BY-
                    PRODUCTS OF METHAMPHETAMINE LABORATORIES AS 
                    HAZARDOUS MATERIALS.

  Section 5103 of title 49, Unites States Code, is amended by adding at 
the end the following:
  ``(d) Biennial Report.--The Secretary of Transportation shall submit 
to the Committee on Transportation and Infrastructure of the House of 
Representatives and the Senate Committee on Commerce, Science, and 
Transportation a biennial report providing information on whether the 
Secretary has designated as hazardous materials for purposes of chapter 
51 of such title all by-products of the methamphetamine-production 
process that are known by the Secretary to pose an unreasonable risk to 
health and safety or property when transported in commerce in a 
particular amount and form.''.

SEC. 402. METHAMPHETAMINE PRODUCTION REPORT.

  Section 3001 of the Solid Waste Disposal Act (42 U.S.C. 6921) is 
amended at the end by adding the following:
  ``(j) Methamphetamine Production.--Not later than every 24 months, 
the Administrator shall submit to the Committee on Energy and Commerce 
of the House of Representatives and the Committee on Environment and 
Public Works of the Senate a report setting forth information collected 
by the Administrator from law enforcement agencies, States, and other 
relevant stakeholders that identifies the byproducts of the 
methamphetamine production process and whether the Administrator 
considers each of the byproducts to be a hazardous waste pursuant to 
this section and relevant regulations.''.

SEC. 403. CLEANUP COSTS.

  (a) In General.--Section 413(q) of the Controlled Substances Act (21 
U.S.C. 853(q)) is amended--
          (1) in the matter preceding paragraph (1), by inserting ``, 
        the possession, or the possession with intent to distribute, '' 
        after ``manufacture''; and
          (2) in paragraph (2), by inserting ``, or on premises or in 
        property that the defendant owns, resides, or does business 
        in'' after ``by the defendant''.
  (b) Savings Clause.--Nothing in this section shall be interpreted or 
construed to amend, alter, or otherwise affect the obligations, 
liabilities and other responsibilities of any person under any Federal 
or State environmental laws.

                          Purpose and Summary

    H.R. 3889 would enact retail restrictions on 
methamphetamine precursor chemicals to reduce drug 
manufacturers access to these chemicals, expand regulations of 
the wholesale methamphetamine precursor market, enhance 
criminal penalties for methamphetamine production and 
trafficking, and increase environmental regulation requirements 
for methamphetamine by-products.

                  Background and Need for Legislation

    Methamphetamine is an addictive stimulant drug that 
strongly activates certain systems in the brain. The drug can 
be swallowed in pill form, snorted in powder form, smoked, or 
injected. Users may become addicted quickly, and will use the 
drug with increasing frequency and in increasing doses to 
produce the same effect.
    Methamphetamine causes increased heart rate and blood 
pressure and can cause irreversible damage to blood vessels in 
the brain producing strokes. Other effects of methamphetamine 
include respiratory problems, irregular heartbeat, and extreme 
anorexia. Methamphetamine use can result in cardiovascular 
collapse and death. Chronic users and those exposed to 
methamphetamine production also commonly suffer paranoia.
    In the past, methamphetamine had been considered a drug 
predominantly used in the Western part of the United States. 
However, nationwide use has been increasing. According to the 
2003 National Survey on Drug Use and Health, 12.3 million 
Americans age 12 and older had tried methamphetamine at least 
once in their lifetimes. In many parts of the country the 
problem of methamphetamine use eclipses that of other illicit 
drugs. Since the late 1990s, methamphetamine abuse has spread 
to the South and Midwest, particularly in rural areas. In 2004, 
more lab incidents were reported in Illinois (926) than in 
California (673). In 2003, methamphetamine lab incidents 
reached new highs in Georgia, Minnesota, and Texas.
    Roughly two-thirds of the methamphetamine consumed in this 
country comes from ``super labs'' that produce large quantities 
of the drug. The majority of these super labs are located in 
Mexico. However, the remaining portion is produced in ``small 
toxic labs.'' These labs produced small amounts of the illegal 
drug, but create numerous health issues and leaves hazardous 
waste byproducts.
    The proliferation of small toxic labs can be attributed to 
the relative ease of producing methamphetamine. An Internet 
search of ``methamphetamine recipe'' will produce numerous 
websites that provide step-by-step processes to manufacture the 
drug. In addition, the materials needed to produce 
methamphetamine are easily accessible. The primary ingredient 
of methamphetamine is pseudoephedrine. The pseudoephedrine is 
``cooked'' by a heat source and using common products such as 
anhydrous ammonia, used in fertilizer, and batteries. These 
labs can be found in apartment buildings, basements, and even 
car trunks. These producers are often manufacturing limited 
quantities to supply their own habit and a small network of 
friends. Although the small toxic labs account for only a third 
of the methamphetamine consumed, these labs are stretching the 
resources of many local and state governments as well as law 
enforcement agencies.
    A recent survey conducted by the National Association of 
Counties found 58 percent of county law enforcement agencies 
reported that methamphetamine is their largest drug problem, 
outpacing cocaine and marijuana.
    Pseudoephedrine is also the active ingredient used in many 
over-the- counter cold medications that millions of Americans 
depend on during cold and allergy seasons. Legislation to 
address the methamphetamine problem should not unduly burden 
individuals who purchase pseudoephedrine products for 
legitimate medical needs.
    The Congressional Research Service approximates that each 
pound of methamphetamine produces about six pounds of hazardous 
waste. Illicit methamphetamine ``cooks'' usually release this 
waste into sewers, streams, rivers, or the ground near the lab. 
Water used to extinguish lab fires also carries toxic chemicals 
into the environment. While health effects on a user from 
direct use of methamphetamine have been well studied, long-term 
health-effects research on exposures to substances associated 
with illicit methamphetamine production has just recently 
begun. Such health-effects research considers impacts on 
children, as well as on adults, who might be in the vicinity of 
a methamphetamine- making site.
    While seven (7) states [Alaska, Arizona, Alabama, Colorado, 
Minnesota, Tennessee, and Washington] currently have 
feasibility-based remediation standards specific to 
methamphetamine, there are no uniform, voluntary federal 
guidelines nor mandatory standards governing the clean-up or 
remediation of former methamphetamine sites, either for 
methamphetamine residues themselves, or for chemicals related 
to illicit methamphetamine production.

                                Hearings

    The Subcommittee on Health and the Subcommittee on the 
Environment and Hazardous Materials held a joint hearing on 
``Comprehensively Combating Methamphetamines: Impacts on Health 
and Environment'' on October 20, 2005. The Subcommittees 
received testimony from Peter Murtha, Director, Office of 
Criminal Enforcement, Forensics and Training, Office of 
Enforcement and Compliance Assurance, U.S. Environmental 
Protection Agency; Mr. Joseph T. Rannazzisi, Deputy Chief, 
Office of Enforcement Operations, U.S. Drug Enforcement 
Administration; Mrs. Stephanie Colston, Senior Advisor to the 
Administrator, Substance Abuse and Mental Health Services 
Administration, U.S. Department of Health and Human Services; 
The Honorable Eric Coleman, County Commissioner, Oakland 
County, Michigan, testifying on behalf of the National 
Association of Counties; Mrs. Mary Ann Wagner, Senior Vice 
President for Pharmacy, Policy and Regulatory Affairs, National 
Association of Chain Drug Stores; Mr. Gordon Knapp, President, 
PCH North America, Pfizer Inc.; Sheriff Ted G. Kamatchus, 
Marshall County, Iowa, testifying on behalf of the National 
Sheriffs' Association; and, Mr. Joseph R. Heerens, Senior Vice 
President for Government Affairs, Marsh Supermarkets, Inc., 
testifying on behalf of the Food Marketing Institute.

                        Committee Consideration

    On Tuesday, November 15, 2005, the Committee on Energy and 
Commerce met in open markup session and ordered H.R. 3889 
favorably reported to the House, amended, by voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. 
There were no record votes taken in connection with ordering 
H.R. 3889 reported. A motion by Mr. Barton to order H.R. 3889 
reported to the House, amended, was agreed to by a voice vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held an oversight 
hearing and made findings that are reflected in this report.

         Statement of General Performance Goals and Objectives

    The goal of H.R. 3889 is to strengthen retail reporting 
requirements for regulated retail transactions of 
methamphetamine precursors, expand regulations of the wholesale 
methamphetamine precursor market, enhance criminal penalties 
for methamphetamine production and trafficking, and increase 
environmental regulation requirements for methamphetamine by-
products.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
3889, Methamphetamine Epidemic Elimination Act, would result in 
no new or increased budget authority, entitlement authority, or 
tax expenditures or revenues.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                                 November 15, 2005.
Hon. Joe Barton,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
completed the enclosed cost estimate for H.R. 3889, the 
Methamphetamine Epidemic Elimination Act.
    The CBO staff contacts for this estimate are Mark Grabowicz 
(for federal costs), Melissa Merrell (for the impact on state 
and local governments), and Fatimot Ladipo (for the impact on 
the private sector).
            Sincerely,
                                           Donald B. Marron
                               (For Douglas Holtz-Eakin, Director).
    Enclosure.

H.R. 3889--Methamphetamine Epidemic Elimination Act

    Summary: H.R. 3889 would authorize the appropriation of $5 
million for each of fiscal years 2006 and 2007 for the 
Department of State mostly to combat the smuggling of 
methamphetamine from Mexico to the United States. In addition, 
the bill would strengthen the regulation of pseudoephedrine, 
ephedrine, and phenylpropanolamine and would limit retail sales 
of products that contain those substances. Assuming 
appropriation of the authorized amounts, CBO estimates that 
implementing H.R. 3889 would cost $10 million over the 2006-
2009 period. Enacting the bill also could affect direct 
spending and revenues, but CBO estimates that any effects would 
not be significant for any year.
    H.R. 3889 would impose an intergovernmental mandate as 
defined in the Unfunded Mandates Reform Act (UMRA) by 
preempting some state laws that regulate pharmaceutical sales. 
In addition, the bill would impose an intergovernmental mandate 
on some publicly owned pharmacies by requiring tighter controls 
for selling and storing over-the-counter drugs containing 
pseudoephedrine, ephedrine, or phenylpropanolamine. CBO 
estimates that the costs, if any, for states, localities, and 
publicly owned pharmacies to comply with those mandates would 
be insignificant and well below the threshold established in 
UMRA ($62 million in 2005, adjusted annually for inflation).
    H.R. 3889 would impose private-sector mandates, as defined 
in UMRA, on retail businesses and persons involved in the sale 
and distribution of certain medications containing ephedrine, 
pseudoephedrine, or phenylpropanolamine. CBO estimates that the 
aggregate direct costs of complying with those mandates would 
fall below the annual threshold established by UMRA for 
private-sector mandates ($123 million in 2005, adjusted 
annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3889 is shown in the following table. 
The costs of this legislation fall within budget function 150 
(international affairs).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2006     2007     2008     2009     2010
----------------------------------------------------------------------------------------------------------------
                                CHANGES IN SPENDING SUBJECT TO APPROPRIATION \1\

Authorization Level................................................        5        5        0        0        0
Estimated Outlays..................................................        3        4        2        1        0
----------------------------------------------------------------------------------------------------------------
\1\ In addition to the amounts shown above, enacting H.R. 3889 also could affect direct spending and revenues,
  but CBO estimates that any effects would not be significant in any year.

    Basis of estimate: For this estimate, CBO assumes that the 
bill will be enacted by the end of calendar year 2005. CBO 
estimates that implementing H.R. 3889 would cost $10 million 
over the 2006-2009 period, assuming appropriation of the 
authorized amounts. Enacting the bill could affect direct 
spending and receipts, but we estimate that any effects would 
not be significant in any year.

Spending subject to appropriation

    For this estimate, CBO assumes that the amounts authorized 
by the bill for the programs listed below will be appropriated 
near the start of each fiscal year and that spending will 
follow the historical spending patterns for those or similar 
activities.
    For the Department of State, H.R. 3889 would authorize the 
appropriation of:
           $4 million for each of fiscal years 2006 and 
        2007 to prevent the smuggling of methamphetamine from 
        Mexico to the United States; and
           $1 million for each of fiscal years 2006 and 
        2007 for analysis for reports on countries that export 
        and import the most pseudoephedrine, ephedrine, and 
        phenylpropanolamine and the cost of developing a plan 
        to prevent the diversion of those chemicals to illegal 
        uses.
    In addition, H.R. 3889 would strengthen the regulation of 
pseudoephedrine, ephedrine, and phenylpropanolamine and would 
limit retail sales of products that contain those substances. 
CBO estimates that any resulting increase in administrative or 
investigative costs for the Drug Enforcement Administration 
would not be significant.

Direct spending and revenues

    Enacting H.R. 3889 could increase collections of civil and 
criminal fines for violations of the bill's provisions relating 
to methamphetamine production and trafficking as well as those 
regarding the importation of precursor chemicals. CBO estimates 
that any additional collections would not be significant 
because of the relatively small number of additional cases 
likely to be affects. Civil fines are recorded as revenues. 
Criminal fines are recorded as revenues, deposited in the Crime 
Victims Fund, and subsequently spent without further 
appropriation.
    Estimated impact on state, local, and tribal governments: 
H.R. 3889 would impose an intergovernmental mandate, as defined 
in UMRA, by preempting state laws that place less-burdensome 
requirements than those established in this bill on 
pharmaceutical dispensers for selling and storing over-the-
counter drugs containing pseudoephedrine, ephedrine, or 
phenylpropanolamine. In addition, the bill would impose an 
intergovernmental mandate on publicly owned pharmacies by 
requiring compliance with those sale and storage requirements. 
Because the preemption would not require states to take any 
action and because we expect that very few public pharmacies 
would be affected by the new requirements, CBO estimates that 
compliance costs would be insignificant and well below the 
threshold established in UMRA ($62 million in 2005, adjusted 
annually for inflation).
    Estimated impact on the private sector: H.R. 3889 would 
impose private-sector mandates, as defined in UMRA, on retail 
businesses and persons involved in the sale and distribution of 
certain medications containing ephedrine, pseudoephedrine, or 
phenylpropanolamine. The bill would reclassify those drugs, 
which are found in many over-the-counter medications, as 
``scheduled listed chemical products''--a new category of 
chemicals under the Controlled Substances Act. The sale and 
distribution of products containing those substances would be 
regulated by the Controlled Substances Act as amended by this 
bill. Based on information from industry and government 
sources, CBO estimates that the aggregate direct costs of 
complying with those mandates would fall below the annual 
threshold established by UMRA for private-sector mandates ($123 
million in 2005, adjusted annually for inflation).

Retail businesses

    The bill would impose private-mandates on retail businesses 
and persons involved in the sale and distribution of certain 
medications by restricting access to ephedrine, 
pseudoephedrine, and phenylpropanolamine products and imposing 
limits on the amount of such products that can be sold per 
customer. Retail sellers would be required to verify the 
identification of individuals purchasing those products and 
maintain a written or electronic record of each sales 
transaction for not fewer than two years. Such requirement 
would not apply to any purchase by an individual of a single 
sales package if that package contains not more than 60 
milligrams of pseudoephedrine. The bill also would require 
sellers to submit to the Attorney General certification that 
certain employees involved in the delivery and direct sales of 
those products to consumers have undergone specific training.
    Under H.R. 3889, certain retail establishments would have 
to move the location of pharmaceutical products containing 
those substances behind the counter or store them in locked 
cabinets, train employees to alert them to the new regulations, 
and implement new sales and hiring practices. Retail businesses 
might also reprogram software to signal or block transactions 
exceeding the threshold, although this would not be explicitly 
required. Finally, the bill would require sellers who ship 
(mail order or Internet sales) such medications to confirm the 
identify of a purchaser prior to shipping in accordance with 
procedures to be established by the Attorney General.
    According to government and industry sources, at least 13 
states have already enacted laws that place restrictions on 
such medications and many large retailers have voluntarily 
complied with the restrictions in this bill. In addition, 
similar products that do not contain those substances are 
readily available to be sold as an alternative or substitute. 
According to those industry sources, the costs associated with 
relocating a product, logging the sale, certification, 
retraining, and implementing new sales and hiring practices 
would be small. Therefore CBO estimates that the direct cost to 
comply with those mandates would be small relative to UMRA's 
threshold for private-sector mandates.

Consumers

    The bill would require individuals who purchase products 
containing ephedrine, pseudoephedrine, or phenylpropanolamine 
to provide photo identification and sign a written log of the 
transaction. CBO expects that the direct cost for individuals 
to comply with the mandate would be minimal.

Importers and Exporters

    The bill also would impose a new mandate by expanding the 
current reporting requirements for certain importers and 
exporters of listed chemicals, such as ephedrine, 
pseudoephedrine, or phenylpropanolamine. Currently, certain 
importers and exporters (those that are not regular importers 
or exporters as determined by the Department of Justice) must 
file an initial advanced notice with the department 15 days 
before the shipment of such listed chemicals. Under the bill, 
if an original planned sale of such chemicals falls through, 
those importers and exporters must file a second advance notice 
with the department identifying the new purchaser 15 days prior 
to a new shipment. Finally, the bill would require importer to 
file a report with federal regulators listing complete 
information about the chain of distribution of imported 
chemicals. Based on information from government sources, CBO 
expects that the cost of complying with the mandate would be 
small.
    Previous CBO estimates: On November 15, 2005, CBO 
transmitted a cost estimate for H.R. 3889 as ordered reported 
by the House Committee on the Judiciary on November 9, 2005. 
CBO estimated that implementing that version of the bill would 
cost $377 million over the 2006-1010 period, assuming 
appropriation of the authorized amounts.
    On September 15, 2005, CBO transmitted a cost estimate for 
S. 103, the Combat Meth Act of 2005, as reported by the Senate 
Committee on the Judiciary on July 28, 2005. CBO estimated that 
implementing S. 103 would cost about $90 million over the 2006-
2010 period, assuming appropriations of the necessary amounts. 
Enacting that bill also could affect direct spending, but we 
estimated that any net affect direct spending, but we estimated 
that any net affects would not be significant in any year.
    Both bills would impose similar mandates on individuals and 
person involved in the sale and distribution of certain 
medications containing pseudoephedrine or ephedrine S. 103 did 
not contain any mandates on the sale or distribution of 
phenylprapanolamine products or on importer or exporters. Both 
S. 103 and H.R. 3889, as ordered reported by the House 
Committee on the Judiciary, would impose a limit of 7.5 grams 
of such medications that consumers could purchase in any 30-day 
period. The aggregate direct cost of complying with the 
mandates in each bill would fall below the annual threshold 
established by UMRA for private-sector mandates.
    Estimate prepared by: Federal Costs: DOJ--Mark Grabowicz; 
Department of State--Sam Papenfuss; Receipts--Emily Schlect; 
impact on sale, local, and tribal governments: Melissa Merrell; 
impact on the private sector: Fatimot Ladipo and Paige Piper/
Bach.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 101. Schedule listed chemical products; restrictions on sales 
        quantities, behind-the-counter access, and other safeguards

    Subsection 101(a) amends Section 102 of the Controlled 
Substances Act by creating four new terms. First, ``scheduled 
listed chemical (SLC) product'' is defined as a product that 
contains ephedrine, pseudoephedrine, or phenylpropanolamine and 
can be marketed or distributed lawfully in the United States 
under the Federal Food, Drug, and Cosmetic Act as a 
nonprescription drug. The Committee intends for regulations 
pertaining to scheduled listed chemical products to apply to 
over-the-counter drugs and not prescription drugs. The 
Committee believes increased regulatory requirements for these 
over-the-counter products are warranted, but the regulatory 
requirements of a Schedule V designation under the Controlled 
Substances Act are not appropriate for these products.
    This subsection also creates the term ``regulated seller'' 
which is defined as a retail distributor of scheduled listed 
chemical products (including a pharmacy or retail vendor). The 
term does not apply to an employee or agent of such 
distributor.
    The term ``mobile retail vendor'' means a person or entity 
that makes sales at retail from a stand that is intended to be 
temporary, or is capable of being moved from one location to 
another, whether the stand is located within or on the premises 
of a fixed facility (such as a kiosk at a shopping center or an 
airport) or whether the stand is located on unimproved real 
estate (such as a lot or field leased for retail purposes).
    The term ``at retail'' with respect to the sale or purchase 
of a scheduled listed chemical product, means a sale or 
purchase for personal use.
    Subsection 101(b) amends Section 310 of the Controlled 
Substances Act by adding a new subsection 310(d). New 
subsection 310(d) limits the amount of SLC product an 
individual can purchase in a day to 3.6 grams. The 3.6 grams 
limit is the base weight of the SLC contained in the product, 
not the weight of the total product. To help facilitate 
compliance with this provision the Committee encourages 
manufacturers to include on packages the total amount of SLC 
contained in the product package. This section also states a 
seller or distributor may not sell such a product in non-liquid 
form (including gel caps) at retail unless the product is 
packaged in blister packs, each blister containing not more 
than 2 dosage units, or where the use of blister packs is 
technically infeasible, the product is packaged in unit dose 
packets or pouches.
    New subsection 310(e) states that a seller of a scheduled 
listed chemical product ensures that sales are made in 
accordance with certain conditions. The seller is required to 
store the SLC products behind the counter or in locked cabinet 
storage.
    The seller is required to maintain a written or electronic 
log of each purchase. The log will identify the products by 
name, and list the quantity sold, the name and address of the 
purchaser, and the date and time of the sale. Entering such 
information into the written or electronic log is not required 
for those purchasing one single-dose package of SLC product. 
The single sales package cannot contain more than 60 milligrams 
of pseudoephedrine, two pills of regular strength 
pseudoephedrine product. The exemption does not apply when an 
individual purchases more than one single-dose package per 
transaction.
    The seller cannot sell the product if the purchaser does 
not present an identification card that contains a photograph. 
The purchaser must enter into the logbook their name, address, 
and the date and time of sale. The seller must determine that 
the name entered into the logbook corresponds to the 
identification provided, and that the date and time entered 
into the logbook are correct. The logbook must contain a notice 
that false statements or misrepresentations in the logbook may 
subject the purchaser to criminal penalties under Title 18 
United States Code 1001. In the October 20th hearing, law 
enforcement witnesses testified that the existence of these 
logbooks is a critical tool to deter individuals from roaming 
from store to store purchasing small quantities of cold 
medications for the use of methamphetamine production.
    The seller will be required to maintain each entry in the 
logbook for two years after the date on which the entry is 
made. Each regulated seller is required to provide to the 
Attorney General a certification that it is in compliance with 
the regulatory requirements for the sale of these products, and 
that its employees who deliver these products to purchasers 
have been trained to comply with these requirements. The seller 
must maintain a copy of the certification and records 
demonstrating that individuals providing SLC products directly 
to purchasers have undergone training. The Committee does not 
intend for the seller to have to provide to the Attorney 
General the specific name of each individual who has undergone 
training or update the Attorney General when a new employee has 
been trained. However, the seller is required to keep a list of 
names of employees that have undergone training to deliver 
these products.
    The Attorney General must make available a copy of these 
certifications to state and local officials. A separate 
certification is required for each place of business at which 
the seller sells scheduled listed chemical products at retail. 
The Attorney General is charged with establishing a program 
regarding certification and training. The program shall be 
carried out through an Internet site of the Department of 
Justice and other means the Attorney General deems appropriate. 
The program shall inform sellers that Section 1001 of Title 18 
of the United States Code applies to such certifications. The 
program shall be designed to permit the submissions of 
certifications through the Internet site. This program shall be 
designed so as not to require direct interaction between 
regulated sellers and the staff of the Department of Justice.
    Mobile retail vendors must comply with all requirements of 
regulated sellers and, in addition, may not sell more than 7.5 
grams of SLC base product to a customer in a 30-day period.
    The Attorney General shall by regulation establish 
restrictions on disclosure of information in logbooks. The 
disclosure of this information is limited to the Attorney 
General and to state and local law enforcement authorities. 
Regulated sellers are prohibited from accessing, using, or 
sharing information in the logbooks for any purpose other than 
to ensure compliance with this title or to facilitate a product 
recall to protect public health and safety.
    A regulated seller who in good faith releases information 
in a logbook to Federal, state, or local law enforcement 
authorities is immune from civil liability for such release 
unless the release constitutes gross negligence or intentional, 
wanton, or willful misconduct.
    The theft of SLC products by retail employees is a 
significant barrier to preventing illegal diversion of these 
products. A regulated seller may take reasonable measures to 
guard against employing individuals who may present a risk with 
respect to the theft and diversion of scheduled listed chemical 
products, which may include, notwithstanding state law, asking 
applicants for employment whether they have been convicted of 
any crime involving or related to such products or controlled 
substances.
    The effective date for subsection 310(d) is 30-days after 
the date of enactment. The effective date for new subsection 
(e)(1) is September 30, 2006.
    Subsection 101(c) amends Section 310(e) of the Controlled 
Substances Act imposing certain restrictions on mail order 
purchases. A person prior to shipping the product shall confirm 
the identification of the purchaser with procedures established 
by the Attorney General. A person may not sell through mail 
order more than 7.5 grams of SLC base in such products to a 
customer within a 30-day period.
    Subsection 101(d) allows the Attorney General by 
regulation, upon application of the manufacturer of a scheduled 
listed chemical product, to exempt that product from the 
provisions of subsection (d) and paragraph(1) and (2) if the 
Attorney General determines that product cannot be used in the illicit 
production of methamphetamine.
    Subsection 101(e) adds three new categories of unlawful 
activities with respect to controlled substances. These include 
(1) making it unlawful for a regulated seller or distributor to 
sell at retail a scheduled listed chemical product knowing at 
the time of the transaction that the transaction is a 
violation; (2) making it unlawful for a regulated seller to 
knowingly or recklessly sell at retail a scheduled listed 
chemical product in violation of subsection (e); and, (3) 
making it unlawful for a regulated seller to disclose, in 
violation of regulations under subparagraph (C) of section 
310(e)(1), information in logbooks. Such a person may not 
refuse to provide such a logbook to Federal, state, or local 
law enforcement authorities.
    If a regulated seller or distributor violates these new 
sections, the Attorney General may prohibit such seller or 
distributor from selling any scheduled listed chemical product. 
Any sale of such a product in violation of such an order is 
subject to penalties including imprisonment of not more than 1 
year for a first offense and not more than 2 years for one or 
more prior convictions. A fine under Title 18 of the United 
States Code could also be applied.
    Subsesection 101(f) preserves state authority to regulate 
scheduled listed chemical products. This section clarifies that 
this legislation will not pre-empt existing state laws.

Section 102. Regulated transactions

    Section 102 makes conforming amendments to the Controlled 
Substances Act to ensure that Scheduled Listed Chemicals are 
treated similarly to Listed Chemicals and other changes are 
incorporated.

Section 103. Authority to establish production quotas

    Section 103 extends the Attorney General's existing 
authority to set production quotas for certain controlled 
substances to pseudoephedrine, ephedrine, and 
phenylpropanolamine. Currently, domestic production of these 
chemicals is not very high, as most of our supply is imported. 
However, if Congress adopts the import quotas enacted by 
section 104 of the bill, the Attorney General would need to 
have corresponding authority within the U.S. if domestic 
production were to increase. Current law (as amended) would 
allow manufacturers to apply for increases in their production 
quotas.

Section 104. Penalties; authority for manufacturing; quota

    Section 104 expands the existing penalty for illegal 
production beyond established quotas to take into account the 
Attorney General's new authority to set quotas for 
methamphetamine precursors.

Section 105. Restrictions on importation; authority to permit imports 
        for medical, scientific, or other legitimate purposes

    Section 105 extends the Attorney General's existing 
authority to set import quotas for controlled substances to 
pseudoephedrine, ephedrine, and phenylpropanolamine. This 
section contains a provision allowing registered importers to 
apply for temporary or permanent increases in a quota to meet 
legitimate needs, which would have to be acted on by the 
Attorney General within 60 days.

Section 106. Notice of importation or exportation; approval of sale or 
        transfer by importer or exporter

    Section 106 closes a regulatory loophole for imports and 
exports of precursor chemicals for methamphetamine and other 
synthetic drugs. Under current law, an importer or exporter who 
wishes to import pseudoephedrine or other precursor chemicals 
must either (1) notify the Department of Justice 15 days in 
advance of the import or export, or (2) be a regular importer 
or exporter (i.e., a company that the Department has previously 
allowed to import or export) and be planning to sell the 
chemicals to a regular customer (again, one that the Department 
has previously permitted to take delivery).
    A problem can arise, however, when the sale on which the 
importer or exporter originally planned falls through. When 
this happens, the importer or exporter must quickly find a new 
buyer for the chemicals on what is called the ``spot market''--
a wholesale market. Sellers are often under pressure to find a 
buyer in a short amount of time, meaning that they may be 
tempted to entertain bids from companies without a strong 
record of preventing diversion. More importantly, the 
Department of Justice has no opportunity to review such 
transactions in advance and suspend them if there is a danger 
of diversion to illegal drug production.
    This section extends the current reporting requirements--as 
well as the current exemption for regular importers, exporters, 
and customers--to post-import or export transactions. If an 
importer or exporter was required to file an initial advance 
notice with the Department of Justice 15 days before the 
shipment of chemicals, and the originally planned sale fell 
through, the importer or exporter would then have to file a 
second advance notice with the Department identifying the new 
proposed purchaser. The Department would then have 15 days to 
review the new transaction and decide whether it presents 
enough of a risk of diversion to warrant suspension. As is the 
case under existing law, a suspension can be appealed through 
an administrative process.
    If, however, an importer or exporter is exempt from filing 
an initial advance notice because it qualifies as a ``regular'' 
importer or exporter under existing law, that importer or 
exporter would not have to file the second advance notice, as 
long as the new proposed purchaser also qualifies as a 
``regular'' customer under existing law.

Section 107. Enforcement of restrictions on importation and of 
        requirement of notice of transfer

    Section 107 makes a conforming amendment to current law to 
extend existing penalties for illegal imports or exports to the 
new regulatory requirements added by sections 105 and 106 of 
the bill.

Section 108. Coordination with United States Trade Representative

    Since the new import regulations authorized by this title 
of the bill also apply to exports and domestically manufactured 
products, nothing in the bill should lead to violations of any 
international trade treaties or agreements. To ensure that no 
inadvertent violations should occur during implementation of 
the new regulations, this section requires the Attorney General 
to consult with the U.S. Trade Representative.

Section 201. Information on foreign chain of distribution; import 
        restrictions regarding failure of distributors to cooperate

    Section 201 amends the reporting requirements for importers 
of methamphetamine precursor chemicals, by requiring them to 
file with federal regulators complete information about the 
chain of distribution of imported chemicals (from the 
manufacturer to the shores of the U.S.). This will help U.S. 
law enforcement agencies to better track where methamphetamine 
precursors come from, and how they get to the U.S. At present, 
very little information exists about the international ``chain 
of distribution'' for these chemicals, hindering effective 
controls.
    If the Attorney General determines that a foreign-chain 
distributor is refusing to cooperate with respect to obtaining 
this information, this section gives the Attorney General may 
issue an order prohibiting the importation of ephedrine, 
pseudoephedrine, or phenylpropanolamine in any case where such 
a distributor is part of the chain of distribution.

Section 202. Requirements relating to the largest exporting and 
        importing countries of certain precursor chemicals

    Section 202 mandates a separate section of the current 
State Department report on major drug producing and transit 
countries, identifying the 5 largest exporters of major 
methamphetamine precursor chemicals, and the 5 largest 
importers that also have the highest rate of methamphetamine 
production or diversion of these chemicals to the production of 
methamphetamine. If any of those countries were not fully 
cooperating with U.S. law enforcement in implementing their 
responsibilities under international drug control treaties, 
there would be consequences for their eligibility for U.S. aid, 
similar to those faced by the major drug trafficking nations 
under current law.
    This section applies the ``fully cooperates'' standard (and 
not the lesser standard under another, separate provision of 
law). This standard would only have to apply with respect to 
the listed countries' cooperation with respect to 
methamphetamine precursor chemicals; cooperation with respect 
to other drugs would continue to be evaluated under existing 
law.
    Section 202 also includes authorization of $1 million for 
implementation. The House recently passed an amendment to the 
State Department's appropriations bill for FY 2006, adding $5 
million for the Department to implement anti-methamphetamine 
measures; this $1 million could come out of that amount.

Section 203. Prevention of smuggling of methamphetamine into the United 
        States from Mexico

    Section 203 requires the State Department's Bureau for 
International Narcotics and Law Enforcement Affairs (INL) to 
provide assistance to Mexico to prevent the production of 
methamphetamine in that country, and to encourage Mexico to 
stop the illegal diversion of methamphetamine precursor 
chemicals. The amendment would authorize the use of $4 million 
of the $5 million recently approved by the House for these 
purposes.

Section 301. Enhanced penalties for methamphetamine production, 
        possession, or trafficking

    Section 301 would create a new criminal provision for 
possession with intent to manufacture a scheduled listed 
chemical and impose a maximum punishment of life imprisonment. 
This provision increases the currently applicable provision 
that imposes a maximum of 20 years imprisonment.
    This section also lowers the amount of methamphetamine that 
constitutes a violation of the Controlled Substances Act and 
carries with it explicit prison terms and fines.

Section 302. Smuggling methamphetamine or methamphetamine precursor 
        chemicals into the United States while using facilitated entry 
        programs

    Even as more methamphetamine is being smuggled across the 
border, increased legitimate international traffic has forced 
the Bureau of Customs and Border Protection (CBP) to rely on 
facilitated entry programs--so-called ``fastpass'' systems like 
SENTRI (for passenger traffic on the Southwest border), FAST 
(for commercial truck traffic), and NEXUS (for passenger 
traffic on the Northern border). These systems allow pre-
screened individuals to use dedicated lanes at border 
crossings, subject only to occasional searches to test 
compliance with customs and immigration laws.
    These programs can be a powerful tool for CBP to manage 
heavy traffic at major border crossings, but they can also 
create potential risks. If a drug trafficking organization were 
to hire someone cleared for a ``fastpass'' system, it could 
smuggle large amounts of drugs through only minimal security. 
The problem is compounded by the fact that computerized 
criminal background checks cannot be performed in Mexico, 
meaning that our ability to screen Mexican citizens who apply 
for a fastpass system is minimal at best.
    Section 302 creates an added deterrent for anyone to misuse 
a facilitated entry program to smuggle methamphetamine or its 
precursor chemicals. An additional penalty of up to 15 years 
imprisonment would be added to the punishment for the base 
offense. If convicted, an individual would also be permanently 
barred from using a fastpass system again.

Section 303. Manufacturing controlled substances on Federal property

    Section 303 clarifies that current penalties for 
cultivating illegal drugs on Federal property also apply to 
manufacturing synthetic drugs (such as methamphetamine). 
Methamphetamine cooks have frequently moved their operations to 
parks, national forests, and other public lands, causing 
serious environmental damage. This criminal penalty can help 
deter such destructive conduct.

Section 304. Increased punishment for methamphetamine kingpins

    Section 304 allows for easier application of the enhanced 
penalties of the ``continuing criminal enterprise'' section of 
the Controlled Substances Act. That section (commonly referred 
to as the ``kingpin'' statute) imposes life imprisonment on a 
leader of a drug trafficking organization convicted of 
trafficking in very large quantities of a drug, and receiving 
very large profits from that activity. This section reduces the 
threshold amount of methamphetamine (from 300 to 100 times the 
threshold for base violations) and profits from methamphetamine 
(from $10 million to $1 million), while still applying the life 
imprisonment penalty only to true ``kingpins''--the ringleaders 
of methamphetamine trafficking organizations.

Section 401. Biennial report to Congress on agency designations of by-
        products of methamphetamine laboratories as hazardous materials

    Section 401 amends Section 5103 of Title 49--which 
addresses Department of Transportation rules concerning the 
transportation of hazardous materials--by creating a new 
subsection (d). This new subsection requires the Secretary of 
Transportation to submit, once every two years, to the House 
Committee on Transportation and Infrastructure and the Senate 
Committee on Commerce, Science, and Transportation information 
on whether the Department of Transportation has under Chapter 
51 of Title 49 designated all by-products of the 
methamphetamine production process as hazardous materials that 
are known by the Secretary of Transportation to pose an 
unreasonable risk to health and safety or property when 
transported in commerce.

Section 402. Methamphetamine production report

    Section 402 amends Section 3001 of the Solid Waste Disposal 
Act by adding a new subsection (j). This new subsection 
requires the Administrator of the Environmental Protection 
Agency to submit a report, at least once every two years, to 
the House Committee on Energy and Commerce and the Senate 
Committee on Environment and Public Works that details 
information, collected from law enforcement, states, and other 
relevant stakeholders, on the by-products of the 
methamphetamine production process and whether the 
Administrator considers each of these by-products to be a 
hazardous waste pursuant to Section C of the Solid Waste 
Disposal Act and other relevant regulations.

Section 403. Cleanup costs

    Section 403(a) clarifies the obligation of restitution for 
environmental cleanup cost, under Section 413(q) of the 
Controlled Substances Act, on persons involved in 
methamphetamine production and trafficking. Specifically, this 
provision ensures that any person convicted of a 
methamphetamine related offense can be held liable for cleanup 
costs for the methamphetamine production that took place on the 
defendant's own property, or in his or her place of business or 
residence. Section 403(b) states that nothing in this section 
should be interpreted or construed to amend, alter, or 
otherwise affect the obligations, liabilities, and other 
responsibilities of any person under any Federal or state 
environmental laws.

         Changes in Existing Law Made by the Bill, as Reported

  Pursuant to the terms of the referral of the bill to the 
Committee, the Committee adopted an amendment striking those 
provisions which were referred to the Committee and inserting 
new text.
  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the provisions of the bill referred to the Committee, as 
reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new matter is printed in 
italic, existing law in which no change is proposed is shown in 
roman):

CONTROLLED SUBSTANCES ACT

           *       *       *       *       *       *       *


Part A--Short Title; Findings and Declaration; Definitions

           *       *       *       *       *       *       *


                              definitions

  Sec. 102. As used in this title:
  (1) * * *

           *       *       *       *       *       *       *

  (39) The term ``regulated transaction'' means--
          (A) a distribution, receipt, sale, importation, or 
        exportation of, or an international transaction 
        involving shipment of, a listed chemical, or if the 
        Attorney General establishes a threshold amount for a 
        specific listed chemical, a threshold amount, including 
        a cumulative threshold amount for multiple transactions 
        (as determined by the Attorney General, in consultation 
        with the chemical industry and taking into 
        consideration the quantities normally used for lawful 
        purposes), of a listed chemical, except that such term 
        does not include--
                  (i) * * *

           *       *       *       *       *       *       *

                  [(iv) any transaction in a listed chemical 
                that is contained in a drug that may be 
                marketed or distributed lawfully in the United 
                States under the Federal Food, Drug, and 
                Cosmetic Act (21 U.S.C. 301 et seq.) unless--
                          [(I)(aa) the drug contains ephedrine 
                        or its salts, optical isomers, or salts 
                        of optical isomers, pseudo-ephedrine 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, 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); or
                          [(bb) the Attorney General has 
                        determined under section 204 that the 
                        drug or group of drugs is being 
                        diverted to obtain the listed chemical 
                        for use in the illicit production of a 
                        controlled substance; and
                          [(II) the quantity of ephedrine, 
                        pseudoephedrine, phenylpropanolamine, 
                        or other listed chemical contained in 
                        the drug included in the transaction or 
                        multiple transactions equals or exceeds 
                        the threshold established for that 
                        chemical by the Attorney General, 
                        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 9 
                        grams of pseudoephedrine or 9 grams of 
                        phenylpropanolamine in a single 
                        transaction and sold in package sizes 
                        of not more than 3 grams of 
                        pseudoephedrine base or 3 grams of 
                        phenylpropanolamine base; or]
                  (iv) any transaction in a listed chemical 
                that is contained in a drug that may be 
                marketed or distributed lawfully in the United 
                States under the Federal Food, Drug, and 
                Cosmetic Act, subject to clause (v), unless--
                          (I) the Attorney General has 
                        determined under section 204 that the 
                        drug or group of drugs is being 
                        diverted to obtain the listed chemical 
                        for use in the illicit production of a 
                        controlled substance; and
                          (II) the quantity of the listed 
                        chemical contained in the drug included 
                        in the transaction or multiple 
                        transactions equals or exceeds the 
                        threshold established for that chemical 
                        by the Attorney General;
                  (v) any transaction in a scheduled listed 
                chemical product; or
                  [(v)] (vi) any transaction in a chemical 
                mixture which the Attorney General has by 
                regulation designated as exempt from the 
                application of this title and title III based 
                on a finding that the mixture is formulated in 
                such a way that it cannot be easily used in the 
                illicit production of a controlled substance 
                and that the listed chemical or chemicals 
                contained in the mixture cannot be readily 
                recovered; and

           *       *       *       *       *       *       *

          [(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.]
  (45)(A) The term ``scheduled listed chemical product'' means, 
subject to subparagraph (B), a product that--
          (i) contains ephedrine, pseudoephedrine, or 
        phenylpropanolamine; and
          (ii) may be marketed or distributed lawfully in the 
        United States under the Federal, Food, Drug, and 
        Cosmetic Act as a nonprescription drug.
Each reference in clause (i) to ephedrine, pseudoephedrine, or 
phenylpropanolamine includes each of the salts, optical 
isomers, and salts of optical isomers of such chemical.
  (B) Such term does not include a product described in 
subparagraph (A) if the product contains a chemical specified 
in such subparagraph that the Attorney General has under 
section 201(a) added to any of the schedules under section 
202(c). In the absence of such scheduling by the Attorney 
General, a chemical specified in such subparagraph may not be 
considered to be a controlled substance.
  (46) The term ``regulated seller'' means a retail distributor 
(including a pharmacy or a mobile retail vendor), except that 
such term does not include an employee or agent of such 
distributor.
  (47) The term ``mobile retail vendor'' means a person or 
entity that makes sales at retail from a stand that is intended 
to be temporary, or is capable of being moved from one location 
to another, whether the stand is located within or on the 
premises of a fixed facility (such as a kiosk at a shopping 
center or an airport) or whether the stand is located on 
unimproved real estate (such as a lot or field leased for 
retail purposes).
  (48) The term ``at retail'', with respect to the sale or 
purchase of a scheduled listed chemical product, means a sale 
or purchase for personal use, respectively.
          [(46)] (49)(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] ephedrine, 
        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)] (B) For purposes of this paragraph, entities 
        are defined by reference to the Standard Industrial 
        Classification (SIC) code, as follows:
                  (i) * * *

           *       *       *       *       *       *       *


Part B--Authority To Control; Standards and Schedules

           *       *       *       *       *       *       *


                 REMOVAL OF EXEMPTION OF CERTAIN DRUGS

  Sec. 204. (a) * * *

           *       *       *       *       *       *       *

  [(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).]

Part C--Registration of Manufacturers, Distributors, and Dispensers of 
Controlled Substances; Piperidine Reporting

           *       *       *       *       *       *       *


                       registration requirements

  Sec. 303. (a) * * *

           *       *       *       *       *       *       *

  (h) The Attorney General shall register an applicant to 
distribute a list I chemical unless the Attorney General 
determines that registration of the applicant is inconsistent 
with the public interest. Registration under this subsection 
shall not be required for the distribution of a drug product 
that is exempted under [section 102(39)(A)(iv)] clause (iv) or 
(v) of section 102(39)(A). In determining the public interest 
for the purposes of this subsection, the Attorney General shall 
consider--
          (1) * * *

           *       *       *       *       *       *       *


                quotas applicable to certain substances

  Sec. 306. (a) The Attorney General shall determine the total 
quantity and establish production quotas for each basic class 
of controlled substance in schedules I and II and for 
ephedrine, pseudoephedrine, and phenylpropanolamine to be 
manufactured each calendar year to provide for the estimated 
medical, scientific, research, and industrial needs of the 
United States, for lawful export requirements, and for the 
establishment and maintenance of reserve stocks. Production 
quotas shall be established in terms of quantities of each 
basic class of controlled substance and not in terms of 
individual pharmaceutical dosage forms prepared from or 
containing such a controlled substance.
  (b) The Attorney General shall limit or reduce individual 
production quotas to the extent necessary to prevent the 
aggregate of individual quotas from exceeding the amount 
determined necessary each year by the Attorney General under 
subsection (a). The quota of each registered manufacturer for 
each basic class of controlled substance in schedule I or II or 
for ephedrine, pseudoephedrine, or phenylpropanolamine shall be 
revised in the same proportion as the limitation or reduction 
of the aggregate of the quotas. However, if any registrant, 
before the issuance of a limitation or reduction in quota, has 
manufactured in excess of his revised quota, the amount of the 
excess shall be subtracted from his quota for the following 
year.
  (c) On or before October 1 of each year, upon application 
therefor by a registered manufacturer, the Attorney General 
shall fix a manufacturing quota for the basic classes of 
controlled substances in schedules I and II and for ephedrine, 
pseudoephedrine, and phenylpropanolamine that the manufacturer 
seeks to produce. The quota shall be subject to the provisions 
of subsections (a) and (b) of this section. In fixing such 
quotas, the Attorney General shall determine the manufacturer's 
estimated disposal, inventory, and other requirements for the 
calendar year; and, in making his determination, the Attorney 
General shall consider the manufacturer's current rate of 
disposal, the trend of the national disposal rate during the 
preceding calendar year, the manufacturer's production cycle 
and inventory position, the economic availability of raw 
materials, yield and stability problems, emergencies such as 
strikes and fires, and other factors.
  (d) The Attorney General shall, upon application and subject 
to the provisions of subsections (a) and (b) of this section, 
fix a quota for a basic class of controlled substance in 
schedule I or II for any registrant who has not manufactured 
that basic class of controlled substance or ephedrine, 
pseudoephedrine, or phenylpropanolamine during one or more 
preceding calendar years. In fixing such quota, the Attorney 
General shall take into account the registrant's reasonably 
anticipated requirements for the current year; and, in making 
his determination of such requirements, he shall consider such 
factors specified in subsection (c) of this section as may be 
relevant.
  (e) At any time during the year any registrant who has 
applied for or received a manufacturing quota for a basic class 
of controlled substance in schedule I or II or for ephedrine, 
pseudoephedrine, or phenylpropanolamine may apply for an 
increase in that quota to meet his estimated disposal, 
inventory, and other requirements during the remainder of that 
year. In passing upon the application the Attorney General 
shall take into consideration any occurrences since the filing 
of the registrant's initial quota application that may require 
an increased manufacturing rate by the registrant during the 
balance of the year. In passing upon the application the 
Attorney General may also take into account the amount, if any, 
by which the determination of the Attorney General under 
subsection (a) of this section exceeds the aggregate of the 
quotas of all registrants under this section.
  (f) Notwithstanding any other provisions of this title, no 
registration or quota may be required for the manufacture of 
such quantities of controlled substances in schedules I and II 
or ephedrine, pseudoephedrine, or phenylpropanolamine as 
incidentally and necessarily result from the manufacturing 
process used for the manufacture of a controlled substance or 
of ephedrine, pseudoephedrine, or phenylpropanolamine with 
respect to which its manufacturer is duly registered under this 
title. The Attorney General may, by regulation, prescribe 
restrictions on the retention and disposal of such incidentally 
produced substances or chemicals.
  (g) Each reference in this section to ephedrine, 
pseudoephedrine, or phenylpropanolamine includes each of the 
salts, optical isomers, and salts of optical isomers of such 
chemical.

           *       *       *       *       *       *       *


          REGULATION OF LISTED CHEMICALS AND CERTAIN MACHINES

  Sec. 310. (a) * * *
  (b)(1) * * *

           *       *       *       *       *       *       *

    (3) Mail order reporting.--
          (A) * * *

           *       *       *       *       *       *       *

          (D) Except as provided in subparagraph (E), the 
        following distributions to a nonregulated person, and 
        the following export transactions, shall not be subject 
        to the reporting requirement in subparagraph (B):
                  (i) * * *
                  (ii) Distributions of drug products by retail 
                distributors that may not include face-to-face 
                transactions to the extent that such 
                distributions are consistent with the 
                activities authorized for a retail distributor 
                as specified in section [102(46)] 102(49), 
                except that this clause does not apply to sales 
                of scheduled listed chemical products at 
                retail.

           *       *       *       *       *       *       *

                  (v) Exports which have been reported to the 
                Attorney General pursuant to section 1004 or 
                1018 or which are subject to a waiver granted 
                under [section 1018(e)(2)] section 1018(f)(2).

           *       *       *       *       *       *       *

  (d) Scheduled Listed Chemicals; Restrictions on Sales 
Quantity; Requirements Regarding Nonliquid Forms.--With respect 
to ephedrine base, pseudoephedrine base, or phenylpropanolamine 
base in a scheduled listed chemical product--
          (1) the quantity of such base sold at retail in such 
        a product by a regulated seller, or a distributor 
        required to submit reports by subsection (b)(3) may 
        not, for any purchaser, exceed a daily amount of 3.6 
        grams, without regard to the number of transactions; 
        and
          (2) such a seller or distributor may not sell such a 
        product in nonliquid form (including gell caps) at 
        retail unless the product is packaged in blister packs, 
        each blister containing not more than 2 dosage units, 
        or where the use of blister packs is technically 
        infeasible, the product is packaged in unit dose 
        packets or pouches.
  (e) Scheduled Listed Chemicals; Behind-the-Counter Access; 
Logbook Requirement; Training of Sales Personnel; Privacy 
Protections.--
          (1) Requirements regarding retail transactions.--
                  (A) In general.--Each regulated seller shall 
                ensure that, subject to subparagraph (F), sales 
                by such seller of a scheduled listed chemical 
                product at retail are made in accordance with 
                the following:
                          (i) In offering the product for sale, 
                        the seller places the product such that 
                        customers do not have direct access to 
                        the product before the sale is made (in 
                        this paragraph referred to as ``behind-
                        the-counter'' placement). For purposes 
                        of this paragraph, a behind-the-counter 
                        placement of a product includes 
                        circumstances in which the product is 
                        stored in a locked cabinet that is 
                        located in an area of the facility 
                        involved to which customers do have 
                        direct access.
                          (ii) The seller delivers the product 
                        directly into the custody of the 
                        purchaser.
                          (iii) The seller maintains, in 
                        accordance with criteria issued by the 
                        Attorney General, a written or 
                        electronic list of such sales that 
                        identifies the products by name, the 
                        quantity sold, the names and addresses 
                        of purchasers, and the dates and times 
                        of the sales (which list is referred to 
                        in this subsection as the ``logbook''), 
                        except that such requirement does not 
                        apply to any purchase by an individual 
                        of a single sales package if that 
                        package contains not more than 60 
                        milligrams of pseudoephedrine.
                          (iv) In the case of a sale to which 
                        the requirement of clause (iii) 
                        applies, the seller does not sell such 
                        a product unless--
                                  (I) the prospective 
                                purchaser--
                                          (aa) presents an 
                                        identification card 
                                        that provides a 
                                        photograph and is 
                                        issued by a State or 
                                        the Federal Government, 
                                        or a document that, 
                                        with respect to 
                                        identification, is 
                                        considered acceptable 
                                        for purposes of 
                                        sections 
                                        274a.2(b)(1)(v)(A) and 
                                        274a.2(b)(1)(v)(B) of 
                                        title 8, Code of 
                                        Federal Regulations (as 
                                        in effect on or after 
                                        the date of the 
                                        enactment of the Combat 
                                        Methamphetamine 
                                        Epidemic Act of 2005); 
                                        and
                                          (bb) signs the 
                                        logbook and enters in 
                                        the logbook his or her 
                                        name, address, and the 
                                        date and time of the 
                                        sale; and
                                  (II) the seller--
                                          (aa) determines that 
                                        the name entered in the 
                                        logbook corresponds to 
                                        the name provided on 
                                        such identification and 
                                        that the date and time 
                                        entered are correct; 
                                        and
                                          (bb) enters in the 
                                        logbook the name of the 
                                        product and the 
                                        quantity sold.
                          (v) The logbook includes, in 
                        accordance with criteria of the 
                        Attorney General, a notice to 
                        purchasers that entering false 
                        statements or misrepresentations in the 
                        logbook may subject the purchasers to 
                        criminal penalties under section 1001 
                        of title 18, United States Code, which 
                        notice specifies the maximum fine and 
                        term of imprisonment under such 
                        section.
                          (vi) The seller maintains each entry 
                        in the logbook for not fewer than two 
                        years after the date on which the entry 
                        is made.
                          (vii) In the case of individuals who 
                        are responsible for delivering such 
                        products into the custody of purchasers 
                        or who deal directly with purchasers by 
                        obtaining payments for the products, 
                        the seller has submitted to the 
                        Attorney General a self-certification 
                        that all such individuals have, in 
                        accordance with criteria under 
                        subparagraph (B)(ii), undergone 
                        training provided by the seller to 
                        ensure that the individuals understand 
                        the requirements that apply under this 
                        subsection and subsection (d).
                          (viii) The seller maintains a copy of 
                        such certification and records 
                        demonstrating that individuals referred 
                        to in clause (vii) have undergone the 
                        training.
                          (ix) If the seller is a mobile retail 
                        vendor:
                                  (I) The seller complies with 
                                clause (i) by placing the 
                                product in a locked cabinet.
                                  (II) The seller does not sell 
                                more than 7.5 grams of 
                                ephedrine base, pseudoephedrine 
                                base, or phenylpropanolamine 
                                base in such products per 
                                customer during a 30-day 
                                period.
                  (B) Additional provisions regarding 
                certifications and training.--
                          (i) In general.--A regulated seller 
                        may not sell any scheduled listed 
                        chemical product at retail unless the 
                        seller has submitted to the Attorney 
                        General the self-certification referred 
                        to in subparagraph (A)(vii). The 
                        certification is not effective for 
                        purposes of the preceding sentence 
                        unless, in addition to provisions 
                        regarding the training of individuals 
                        referred to in such subparagraph, the 
                        certification includes a statement that 
                        the seller understands each of the 
                        requirements that apply under this 
                        paragraph and under subsection (d) and 
                        agrees to comply with the requirements.
                          (ii) Issuance of criteria; self-
                        certification.--The Attorney General 
                        shall by regulation establish criteria 
                        for certifications under this 
                        paragraph. The criteria shall--
                                  (I) provide that the 
                                certifications are self-
                                certifications provided through 
                                the program under clause (iii);
                                  (II) provide that a separate 
                                certification is required for 
                                each place of business at which 
                                a regulated seller sells 
                                scheduled listed chemical 
                                products at retail; and
                                  (III) include criteria for 
                                training under subparagraph 
                                (A)(vii).
                          (iii) Program for regulated 
                        sellers.--The Attorney General shall 
                        establish a program regarding such 
                        certifications and training in 
                        accordance with the following:
                                  (I) The program shall be 
                                carried out through an Internet 
                                site of the Department of 
                                Justice and such other means as 
                                the Attorney General determines 
                                to be appropriate.
                                  (II) The program shall inform 
                                regulated sellers that section 
                                1001 of title 18, United States 
                                Code, applies to such 
                                certifications.
                                  (III) The program shall make 
                                available to such sellers an 
                                explanation of the criteria 
                                under clause (ii).
                                  (IV) The program shall be 
                                designed to permit the 
                                submission of the 
                                certifications through such 
                                Internet site.
                                  (V) The program shall be 
                                designed to automatically 
                                provide the explanation 
                                referred to in subclause (III), 
                                and an acknowledgement that the 
                                Department has received a 
                                certification, without 
                                requiring direct interactions 
                                of regulated sellers with staff 
                                of the Department (other than 
                                the provision of technical 
                                assistance, as appropriate).
                          (iv) Availability of certification to 
                        state and local officials.--Promptly 
                        after receiving a certification under 
                        subparagraph (A)(vii), the Attorney 
                        General shall make available a copy of 
                        the certification to the appropriate 
                        State and local officials.
                  (C) Privacy protections.--In order to protect 
                the privacy of individuals who purchase 
                scheduled listed chemical products, the 
                Attorney General shall by regulation establish 
                restrictions on disclosure of information in 
                logbooks under subparagraph (A)(iii). Such 
                regulations shall--
                          (i) provide for the disclosure of the 
                        information as appropriate to the 
                        Attorney General and to State and local 
                        law enforcement agencies; and
                          (ii) prohibit accessing, using, or 
                        sharing information in the logbooks for 
                        any purpose other than to ensure 
                        compliance with this title or to 
                        facilitate a product recall to protect 
                        public health and safety.
                  (D) False statements or misrepresentations by 
                purchasers.--For purposes of section 1001 of 
                title 18, United States Code, entering 
                information in the logbook under subparagraph 
                (A)(iii) shall be considered a matter within 
                the jurisdiction of the executive, legislative, 
                or judicial branch of the Government of the 
                United States.
                  (E) Good faith protection.--A regulated 
                seller who in good faith releases information 
                in a logbook under subparagraph (A)(iii) to 
                Federal, State, or local law enforcement 
                authorities is immune from civil liability for 
                such release unless the release constitutes 
                gross negligence or intentional, wanton, or 
                willful misconduct.
                  (F) Inapplicability of requirements to 
                certain sales.--Subparagraph (A) does not apply 
                to the sale at retail of a scheduled listed 
                chemical product if a report on the sales 
                transaction is required to be submitted to the 
                Attorney General under subsection (b)(3).
                  (G) Certain measures regarding theft and 
                diversion.--A regulated seller may take 
                reasonable measures to guard against employing 
                individuals who may present a risk with respect 
                to the theft and diversion of scheduled listed 
                chemical products, which may include, 
                notwithstanding State law, asking applicants 
                for employment whether they have been convicted 
                of any crime involving or related to such 
                products or controlled substances.
          (2) Mail-order reporting; verification of identity of 
        purchaser; 30-day restriction on quantities for 
        individual purchasers.--Each regulated person who makes 
        a sale at retail of a scheduled listed chemical product 
        and is required under subsection (b)(3) to submit a 
        report of the sales transaction to the Attorney General 
        is subject to the following:
                  (A) The person shall, prior to shipping the 
                product, confirm the identity of the purchaser 
                in accordance with procedures established by 
                the Attorney General. The Attorney General 
                shall by regulation establish such procedures.
                  (B) The person may not sell more than 7.5 
                grams of ephedrine base, pseudoephedrine base, 
                or phenylpropanolamine base in such products 
                per customer during a 30-day period.
          (3) Exemptions for certain products.--Upon the 
        application of a manufacturer of a scheduled listed 
        chemical product, the Attorney General may by 
        regulation provide that the product is exempt from the 
        provisions of subsection (d) and paragraphs (1) and (2) 
        of this subsection if the Attorney General determines 
        that the product cannot be used in the illicit 
        manufacture of methamphetamine.

           *       *       *       *       *       *       *


                     Part D--Offenses and Penalties

                      prohibited acts a--penalties

  Sec. 401. (a) * * *

           *       *       *       *       *       *       *

  (f)(1) Whoever knowingly distributes a listed chemical in 
violation of this title (other than in violation of a 
recordkeeping or reporting requirement of section 310) shall, 
except to the extent that paragraph (12), (13), or (14) of 
section 402(a) applies, be fined under title 18, United States 
Code, or imprisoned not more than 5 years, or both.

           *       *       *       *       *       *       *


                      PROHIBITED ACTS B--PENALTIES

  Sec. 402. (a) It shall be unlawful for any person--
          (1) * * *

           *       *       *       *       *       *       *

          (10) negligently to fail to keep a record or make a 
        report under section 310; [or]
          (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[.];
          (12) who is a regulated seller, or a distributor 
        required to submit reports under subsection (b)(3) of 
        section 310--
                  (A) to sell at retail a scheduled listed 
                chemical product in violation of paragraph (1) 
                of subsection (d) of such section, knowing at 
                the time of the transaction involved 
                (independent of consulting the logbook under 
                subsection (e)(1)(A)(iii) of such section) that 
                the transaction is a violation; or
                  (B) to knowingly or recklessly sell at retail 
                such a product in violation of paragraph (2) of 
                such subsection (d);
          (13) who is a regulated seller to knowingly or 
        recklessly sell at retail a scheduled listed chemical 
        product in violation of subsection (e) of such section; 
        or
          (14) who is a regulated seller or an employee or 
        agent of such seller to disclose, in violation of 
        regulations under subparagraph (C) of section 
        310(e)(1), information in logbooks under subparagraph 
        (A)(iii) of such section, or to refuse to provide such 
        a logbook to Federal, State, or local law enforcement 
        authorities.

           *       *       *       *       *       *       *

  (b) It shall be unlawful for any person who is a registrant 
to manufacture a controlled substance in schedule I or II, or 
ephedrine, pseudoephedrine, or phenylpropanolamine or any of 
the salts, optical isomers, or salts of optical isomers of such 
chemical, which is--
          (1) * * *

           *       *       *       *       *       *       *

  (c)(1) * * *

           *       *       *       *       *       *       *

  (4)(A) If a regulated seller, or a distributor required to 
submit reports under section 310(b)(3), violates paragraph (12) 
of subsection (a) of this section, or if a regulated seller 
violates paragraph (13) of such subsection, the Attorney 
General may by order prohibit such seller or distributor (as 
the case may be) from selling any scheduled listed chemical 
product. Any sale of such a product in violation of such an 
order is subject to the same penalties as apply under paragraph 
(2).
  (B) An order under subparagraph (A) may be imposed only 
through the same procedures as apply under section 304(c) for 
an order to show cause.

           *       *       *       *       *       *       *


                          Criminal Forfeitures

                property subject to criminal forfeiture

  Sec. 413. (a) * * *

           *       *       *       *       *       *       *

  (q) The court, when sentencing a defendant convicted of an 
offense under this title or title III involving the 
manufacture, the possession, or the possession with intent to 
distribute, of amphetamine or methamphetamine, shall--
          (1) * * *
          (2) order the defendant to reimburse the United 
        States, the State or local government concerned, or 
        both the United States and the State or local 
        government concerned for the costs incurred by the 
        United States or the State or local government 
        concerned, as the case may be, for the cleanup 
        associated with the manufacture of amphetamine or 
        methamphetamine by the defendant, or on premises or in 
        property that the defendant owns, resides, or does 
        business in; and

           *       *       *       *       *       *       *

                              ----------                              


  SECTION 401 OF THE COMPREHENSIVE METHAMPHETAMINE CONTROL ACT OF 1996

SEC. 401. DIVERSION OF CERTAIN PRECURSOR CHEMICALS.

  (a) * * *

           *       *       *       *       *       *       *

  [(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.]

           *       *       *       *       *       *       *

                              ----------                              


              CONTROLLED SUBSTANCES IMPORT AND EXPORT ACT

   TITLE III--IMPORTATION AND EXPORTATION; AMENDMENTS AND REPEALS OF 
                              REVENUE LAWS

                              short title

  Sec. 1000. This title may be cited as the ``Controlled 
Substances Import and Export Act''.

                  Part A--Importation and Exportation

                  importation of controlled substances

  Sec. 1002. (a) It shall be unlawful to import into the 
customs territory of the United States from any place outside 
thereof (but within the United States), or to import into the 
United States from any place outside thereof, any controlled 
substance in schedule I or II of title II, or any narcotic drug 
in schedule III, IV, or V of title II, or ephedrine, 
pseudoephedrine, or phenylpropanolamine, except that--
          (1) such amounts of crude opium poppy straw, 
        concentrate of poppy straw, and coca leaves, and of 
        ephedrine, pseudoephedrine, and phenylpropanolamine, as 
        the Attorney General finds to be necessary to provide 
        for medical, scientific, or other legitimate purposes, 
        and

           *       *       *       *       *       *       *

  (d)(1) With respect to a registrant under section 1008 who is 
authorized under subsection (a)(1) to import ephedrine, 
pseudoephedrine, or phenylpropanolamine, at any time during the 
year the registrant may apply for an increase in the amount of 
such chemical that the registrant is authorized to import, and 
the Attorney General may approve the application if the 
Attorney General determines that the approval is necessary to 
provide for medical, scientific, or other legitimate purposes 
regarding the chemical.
  (2) With respect to the application under paragraph (1):
          (A) Not later than 60 days after receiving the 
        application, the Attorney General shall approve or deny 
        the application.
          (B) In approving the application, the Attorney 
        General shall specify the period of time for which the 
        approval is in effect, or shall provide that the 
        approval is effective until the registrant involved is 
        notified in writing by the Attorney General that the 
        approval is terminated.
          (C) If the Attorney General does not approve or deny 
        the application before the expiration of the 60-day 
        period under subparagraph (A), the application is 
        deemed to be approved, and such approval remains in 
        effect until the Attorney General notifies the 
        registrant in writing that the approval is terminated.
  (e) Each reference in this section to ephedrine, 
pseudoephedrine, or phenylpropanolamine includes each of the 
salts, optical isomers, and salts of optical isomers of such 
chemical.

           *       *       *       *       *       *       *


                      prohibited acts a--penalties

  Sec. 1010. (a) * * *

           *       *       *       *       *       *       *

  (d) A person who knowingly or intentionally--
          (1) * * *

           *       *       *       *       *       *       *

          (5) imports or exports a listed chemical, with the 
        intent to evade the reporting or recordkeeping 
        requirements of section 1018 applicable to such 
        importation or exportation by falsely representing to 
        the Attorney General that the importation or 
        exportation qualifies for a waiver of the 15-day 
        notification requirement granted pursuant to [section 
        1018(e) (2) or (3)] paragraph (2) or (3) of section 
        1018(f) by misrepresenting the actual country of final 
        destination of the listed chemical or the actual listed 
        chemical being imported or exported;
          [(6) imports or exports a listed chemical in 
        violation of section 1007 or 1018; or]
          (6) imports a listed chemical in violation of section 
        1002, imports or exports such a chemical in violation 
        of section 1007 or 1018, or transfers such a chemical 
        in violation of section 1018(d); or

           *       *       *       *       *       *       *


  NOTIFICATION, SUSPENSION OF SHIPMENT, AND PENALTIES WITH RESPECT TO 
            IMPORTATION AND EXPORTATION OF LISTED CHEMICALS

  Sec. 1018. (a) * * *
  (b)(1) The Attorney General shall provide by regulation for 
circumstances in which the requirement of subsection (a) does 
not apply to a transaction between a regulated person and a 
regular customer [or to an importation by a regular importer] 
or to a transaction that is an importation by a regular 
importer. At the time of any importation or exportation 
constituting a transaction referred to in the preceding 
sentence, the regulated person shall notify the Attorney 
General of the transaction.

           *       *       *       *       *       *       *

  (c)(1) The Attorney General may order the suspension of any 
importation or exportation of a listed chemical (other than a 
regulated transaction to which the requirement of subsection 
(a) does not apply by reason of subsection (b)) or may 
disqualify any regular customer or regular importer on the 
ground that the chemical may be diverted to the clandestine 
manufacture of a controlled substance (without regard to the 
form of the chemical that may be diverted, including the 
diversion of a finished drug product to be manufactured from 
bulk chemicals to be transferred). From and after the time when 
the Attorney General provides written notice of the order 
(including a statement of the legal and factual basis for the 
order) to the regulated person, the regulated person may not 
carry out the transaction.

           *       *       *       *       *       *       *

  (d)(1)(A) Information provided in a notice under subsection 
(a) or (b) shall include the name of the person to whom the 
importer or exporter involved intends to transfer the listed 
chemical involved, and the quantity of such chemical to be 
transferred.
  (B) In the case of a notice under subsection (b) submitted by 
a regular importer, if the transferee identified in the notice 
is not a regular customer, such importer may not transfer the 
listed chemical until after the expiration of the 15-day period 
beginning on the date on which the notice is submitted to the 
Attorney General.
  (C) After a notice under subsection (a) or (b) is submitted 
to the Attorney General, if circumstances change and the 
importer or exporter will not be transferring the listed 
chemical to the transferee identified in the notice, or will be 
transferring a greater quantity of the chemical than specified 
in the notice, the importer or exporter shall update the notice 
to identify the most recent prospective transferee or the most 
recent quantity or both (as the case may be) and may not 
transfer the listed chemical until after the expiration of the 
15-day period beginning on the date on which the update is 
submitted to the Attorney General, except that such 15-day 
restriction does not apply if the prospective transferee 
identified in the update is a regular customer. The preceding 
sentence applies with respect to changing circumstances 
regarding a transferee or quantity identified in an update to 
the same extent and in the same manner as such sentence applies 
with respect to changing circumstances regarding a transferee 
or quantity identified in the original notice under subsection 
(a) or (b).
  (D) In the case of a transfer of a listed chemical that is 
subject to a 15-day restriction under subparagraph (B) or (C), 
the transferee involved shall, upon the expiration of the 15-
day period, be considered to qualify as a regular customer, 
unless the Attorney General otherwise notifies the importer or 
exporter involved in writing.
  (2) With respect to a transfer of a listed chemical with 
which a notice or update referred to in paragraph (1) is 
concerned:
          (A) The Attorney General, in accordance with the same 
        procedures as apply under subsection (c)(2)--
                  (i) may order the suspension of the transfer 
                of the listed chemical by the importer or 
                exporter involved, except for a transfer to a 
                regular customer, on the ground that the 
                chemical may be diverted to the clandestine 
                manufacture of a controlled substance (without 
                regard to the form of the chemical that may be 
                diverted, including the diversion of a finished 
                drug product to be manufactured from bulk 
                chemicals to be transferred), subject to the 
                Attorney General ordering such suspension 
                before the expiration of the 15-day period 
                referred to in paragraph (1) with respect to 
                the importation or exportation (in any case in 
                which such a period applies); and
                  (ii) may, for purposes of clause (i) and 
                paragraph (1), disqualify a regular customer on 
                such ground.
          (B) From and after the time when the Attorney General 
        provides written notice of the order under subparagraph 
        (A) (including a statement of the legal and factual 
        basis for the order) to the importer or exporter, the 
        importer or exporter may not carry out the transfer.
  (3) For purposes of this subsection:
          (A) The terms ``importer'' and ``exporter'' mean a 
        regulated person who imports or exports a listed 
        chemical, respectively.
          (B) The term ``transfer'', with respect to a listed 
        chemical, includes the sale of the chemical.
          (C) The term ``transferee'' means a person to whom an 
        importer or exporter transfers a listed chemical.
  [(d)] (e) A person located in the United States who is a 
broker or trader for an international transaction in a listed 
chemical that is a regulated transaction solely because of that 
person's involvement as a broker or trader shall, with respect 
to that transaction, be subject to all of the notification, 
reporting, recordkeeping, and other requirements placed upon 
exporters of listed chemicals by this title and title II.
  [(e)] (f)(1) * * *

           *       *       *       *       *       *       *

  (g) Within 30 days after a transaction covered by this 
section is completed, the importer or exporter shall send the 
Attorney General a return declaration containing particulars of 
the transaction, including the date, quantity, chemical, 
container, name of transferees, and such other information as 
the Attorney General may specify in regulations. For importers, 
a single return declaration may include the particulars of both 
the importation and distribution. If the importer has not 
distributed all chemicals imported by the end of the initial 
30-day period, the importer shall file supplemental return 
declarations no later than 30 days from the date of any further 
distribution, until the distribution or other disposition of 
all chemicals imported pursuant to the import notification or 
any update are accounted for.

           *       *       *       *       *       *       *

                              ----------                              


              SECTION 5103 OF TITLE 49, UNITED STATES CODE

Sec. 5103. General regulatory authority

  (a) * * *

           *       *       *       *       *       *       *

  (d) Biennial Report.--The Secretary of Transportation shall 
submit to the Committee on Transportation and Infrastructure of 
the House of Representatives and the Senate Committee on 
Commerce, Science, and Transportation a biennial report 
providing information on whether the Secretary has designated 
as hazardous materials for purposes of chapter 51 of such title 
all by-products of the methamphetamine-production process that 
are known by the Secretary to pose an unreasonable risk to 
health and safety or property when transported in commerce in a 
particular amount and form.
                              ----------                              


              SECTION 3001 OF THE SOLID WASTE DISPOSAL ACT

             identification and listing of hazardous waste

      Sec. 3001. (a) * * *

           *       *       *       *       *       *       *

  (j) Methamphetamine Production.--Not later than every 24 
months, the Administrator shall submit to the Committee on 
Energy and Commerce of the House of Representatives and the 
Committee on Environment and Public Works of the Senate a 
report setting forth information collected by the Administrator 
from law enforcement agencies, States, and other relevant 
stakeholders that identifies the byproducts of the 
methamphetamine production process and whether the 
Administrator considers each of the byproducts to be a 
hazardous waste pursuant to this section and relevant 
regulations.

                  Exchange of Committee Correspondence

                          House of Representatives,
                      Committee on International Relations,
                                 Washington, DC, November 15, 2005.
Hon. Joe Barton,
Chairman, Committee on Energy and Commerce,
Rayburn House Office Building, Washington, DC.
    Dear Mr. Chairman: I am writing to you concerning H.R. 
3889, the ``Methamphetamine Epidemic Elimination Act.'' This 
bill was referred by the Speaker to your Committee along with 
orders, including the Judiciary Committee and this Committee. 
The bill contains language relating to the importing and 
exporting of certain chemicals which are precursors used in the 
manufacturing of methamphetamines, which falls within the Rule 
X jurisdiction of this Committee.
    Specifically, the language in section 202 of the bill 
concerning requirements relating to the largest exporting and 
importing countries of certain precursor chemicals, and the 
language of section 203 relating to prevention of smuggling of 
methamphetamine into the United States from Mexico, deal with 
matters over which this Committee has had a long-term 
jurisdictional and subject matter interest. This Committee has 
worked closely with the Committee on the Judiciary, which also 
has long-term jurisdictional and subject matter interest in the 
problem of precursor chemicals. As a result of this 
collaboration, we have crafted language in sections 202 and 203 
which is acceptable to both committees.
    In light of your Committee's desire to proceed to floor 
consideration of this bill, I am willing to waive further 
consideration of the bill. I do so with the understanding that 
by waiving consideration of the bill, the Committee on 
International Relations does not waive any future 
jurisdictional claim over these or similar measures. In 
addition, in the event of a conference with the Senate on this 
matter, this Committee reserves the right to seek the 
appointment of conferees.
    Please place this letter into the Committee's report on 
H.R. 3889 or the Congressional Record during consideration of 
the measure on the House floor. Thank you for the cooperative 
spirit in which you have worked regarding this matter and 
others between our respective committees.
            Sincerely,
                                             Henry J. Hyde,
                                                          Chairman.
                                ------                                

                          House of Representatives,
                          Committee on Energy and Commerce,
                                 Washington, DC, November 15, 2005.
Hon. Henry J. Hyde,
Chairman, Committee on International Relations,
House of Representatives, Washington, DC.
    Dear Chairman Hyde: Thank you for your letter concerning 
H.R. 3889 ``Methamphetamine Epidemic Elimination Act.'' I 
concur with your statements that the bill contains language 
relating to the importing and exporting of certain chemicals 
which are precursors used in the manufacturing of 
methamphetamines which falls within the Rule X jurisdiction of 
the International Relations Committee. Section 202 of the bill 
concerning requirements relating to the largest exporting and 
importing countries of certain precursor chemicals and the 
language of section 203 relating to prevention of smuggling of 
methamphetamine into the United States from Mexico both deal 
with matters over which your Committee has subject matter 
jurisdiction.
    I appreciate your willingness to waive further 
consideration of the bill by your Committee. By waiving the 
opportunity to markup the bill I concur that the Committee on 
International Relations does not waive any future 
jurisdictional claim over these or similar measures. In 
addition, in the event of a conference with the Senate on this 
matter I will recommend that your Committee have the right to 
seek the appointment of conferees.
    As you have requested, I will enter this exchange of 
letters into the Committee's report on H.R. 3889 or the 
Congressional Record during the debate on this bill.
            Sincerely,
                                                Joe Barton,
                                                          Chairman.
                                ------                                

                          House of Representatives,
            Committee on Transportation and Infrastructure,
                                 Washington, DC, November 15, 2005.
Hon. Joe Barton,
Chairman, Committee on Energy and Commerce,
Rayburn Building, Washington, DC.
    Dear Mr. Chairman: I am writing to you concerning the 
jurisdictional interest of the Transportation and 
Infrastructure Committee in matters being considered in H.R. 
3889, the Methamphetamine Epidemic Elimination Act. As you 
know, this Committee received a referral of the bill.
    Our Committee recognizes the importance of H.R. 3889 and 
the need for the legislation to move expeditiously to the House 
Floor this week. Therefore, I am willing to have the 
Transportation Committee discharged from consideration of the 
bill.
    The Committee on Transportation and Infrastructure also 
asks that you support our request to be conferees on the 
provisions over which we have jurisdiction during any House-
Senate conference. I would appreciate it if you would include a 
copy of this letter and your response in the Congressional 
Record.
    Thank you for your cooperation in this matter.
            Sincerely,
                                                 Don Young,
                                                          Chairman.
                                ------                                

                          House of Representatives,
                          Committee on Energy and Commerce,
                                 Washington, DC, November 16, 2005.
Hon. Don Young,
Chairman, Committee on Transportation and Infrastructure,
House of Representatives, Washington, DC.
    Dear Chairman Young: Thank you for your letter in regards 
to H.R. 3889, the Methamphetamine Epidemic Elimination Act, 
which the Committee on Energy and Commerce ordered reported on 
November 15, 2005.
    As the Committee on Transportation and Infrastructure was 
named as an additional Committee of jurisdiction upon the 
bill's introduction, I acknowledge and appreciate your 
willingness not to exercise your full referral on the bill. In 
doing so, I agree that your decision to forgo further action on 
the bill will not prejudice the Committee on Transportation and 
Infrastructure with respect to its jurisdictional prerogatives 
on this legislation or similar legislation. Further, I 
recognize your right to request conferees on those provisions 
within the Committee on Transportation and Infrastructure's 
jurisdiction should they be the subject of a House-Senate 
conference on this or similar legislation.
    I will include your letter and this response in the 
Committee's report on H.R. 3889 or in the Congressional Record 
during consideration on the House floor.
            Sincerely,
                                                Joe Barton,
                                                          Chairman.

                                  
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