BILL NUMBER: AB 924 CHAPTERED 10/10/99 CHAPTER 975 FILED WITH SECRETARY OF STATE OCTOBER 10, 1999 APPROVED BY GOVERNOR OCTOBER 10, 1999 PASSED THE SENATE SEPTEMBER 9, 1999 PASSED THE ASSEMBLY SEPTEMBER 9, 1999 AMENDED IN SENATE SEPTEMBER 7, 1999 AMENDED IN SENATE SEPTEMBER 2, 1999 AMENDED IN SENATE AUGUST 16, 1999 INTRODUCED BY Committee on Public Safety (Honda (Chair), Cunneen (Vice Chair), Battin, Cedillo, Keeley, Oller, Romero, and Washington) FEBRUARY 25, 1999 An act to amend Sections 11055, 11100, and 11377 of the Health and Safety Code, relating to controlled substances. LEGISLATIVE COUNSEL'S DIGEST AB 924, Committee on Public Safety. Controlled substances: gamma-butyrolactone. (1) Existing law categorizes controlled substances into 5 schedules and places the greatest restrictions on those contained in Schedule I. Schedule II includes the controlled substance gamma-hydroxybutyrate. This bill would revise the above reference in Schedule II to gamma-hydroxybutyrate so as to provide that gamma-hydroxybutyrate, including its immediate precursors, isomers, esters, ethers, salts, and salts of isomers, esters, and ethers, including, but not limited to, the currently unscheduled depressant gamma-butyrolactone, are all classified within Schedule II. By creating new crimes relating to gamma-butyrolactone and related substances, this bill would impose a state-mandated local program. (2) Existing law provides that any manufacturer, wholesaler, retailer, or other person in this state who sells, transfers, or otherwise furnishes any of a list of specified chemical substances to any person or business entity in this state or any other state shall submit a report to the Department of Justice of any transaction prior to the transaction which report shall include specified identification information from the purchaser. Failure to submit a report or to knowingly submit a false report, and a violation of the provisions on proper identification, are crimes. This bill would include gamma-butyrolactone within the list of chemical substances for which the transactional reports specified above must be made. By expanding the scope of existing crimes, this bill would impose a state-mandated local program. This bill would make a conforming change to a related provision. (3) This bill would incorporate changes to Section 11055 of the Health and Safety Code made by SB 550 if both this bill and SB 550 are chaptered and this bill is chaptered last. This bill would incorporate changes to Section 11100 of the Health and Safety Code made by AB 162 if both this bill and AB 162 are chaptered and this bill is chaptered last. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 11055 of the Health and Safety Code is amended to read: 11055. (a) The controlled substances listed in this section are included in Schedule II. (b) Any of the following substances, except those narcotic drugs listed in other schedules, whether produced directly or indirectly by extraction from substances of vegetable origin, or independently by means of chemical synthesis, or by combination of extraction and chemical synthesis: (1) Opium, opiate, and any salt, compound, derivative, or preparation of opium or opiate, with the exception of naloxone hydrochloride (N-allyl-14-hydroxy-nordihydromorphinone hydrochloride), but including the following: (A) Raw opium. (B) Opium extracts. (C) Opium fluid extracts. (D) Powdered opium. (E) Granulated opium. (F) Tincture of opium. (G) Apomorphine. (H) Codeine. (I) Ethylmorphine. (J) Hydrocodone. (K) Hydromorphone. (L) Metopon. (M) Morphine. (N) Oxycodone. (O) Oxymorphone. (P) Thebaine. (2) Any salt, compound, isomer, or derivative, whether natural or synthetic, of the substances referred to in paragraph (1), but not including the isoquinoline alkaloids of opium. (3) Opium poppy and poppy straw. (4) Coca leaves and any salt, compound, derivative, or preparation of coca leaves, but not including decocainized coca leaves or extractions which do not contain cocaine or ecgonine. (5) Concentrate of poppy straw (the crude extract of poppy straw in either liquid, solid, or powder form which contains the phenanthrene alkaloids of the opium poppy). (6) Cocaine, except as specified in Section 11054. (7) Ecgonine, whether natural or synthetic, or any salt, isomer, derivative, or preparation thereof. (c) Opiates. Unless specifically excepted or unless in another schedule, any of the following opiates, including its isomers, esters, ethers, salts, and salts of isomers, esters, and ethers whenever the existence of those isomers, esters, ethers, and salts is possible within the specific chemical designation, dextrorphan and levopropoxyphene excepted: (1) Alfentanyl. (2) Alphaprodine. (3) Anileridine. (4) Bezitramide. (5) Bulk dextropropoxyphene (nondosage forms). (6) Dihydrocodeine. (7) Diphenoxylate. (8) Fentanyl. (9) Isomethadone. (10) Levoalphacetylmethadol, also known as levo-alpha-acetylmethadol, levomethadyl acetate, or LAAM. This substance is authorized for the treatment of narcotic addicts under federal law (see Part 291 (commencing with Section 291.501) and Part 1308 (commencing with Section 1308.01) of Title 21 of the Code of Federal Regulations). (11) Levomethorphan. (12) Levorphanol. (13) Metazocine. (14) Methadone. (15) Methadone-Intermediate, 4-cyano-2-dimethylamino-4, 4-diphenyl butane. (16) Moramide-Intermediate, 2-methyl-3-morpholino-1, 1-diphenylpropane-carboxylic acid. (17) Pethidine (meperidine). (18) Pethidine-Intermediate-A, 4-cyano-1-methyl-4-phenylpiperidine. (19) Pethidine-Intermediate-B, ethyl-4-phenylpiperidine-4-carboxylate. (20) Pethidine-Intermediate-C, 1-methyl-4-phenylpiperidine-4-carboxylic acid. (21) Phenazocine. (22) Piminodine. (23) Racemethorphan. (24) Racemorphan. (25) Sufentanyl. (d) Stimulants. Unless specifically excepted or unless listed in another schedule, any material, compound, mixture, or preparation which contains any quantity of the following substances having a stimulant effect on the central nervous system: (1) Amphetamine, its salts, optical isomers, and salts of its optical isomers. (2) Methamphetamine, its salts, isomers, and salts of its isomers. (3) Dimethylamphetamine (N,N-dimethylamphetamine), its salts, isomers, and salts of its isomers. (4) N-Ethylmethamphetamine (N-ethyl, N-methylamphetamine), its salts, isomers, and salts of its isomers. (5) Phenmetrazine and its salts. (6) Methylphenidate. (e) Depressants. Unless specifically excepted or unless listed in another schedule, any material, compound, mixture, or preparation which contains any quantity of the following substances having a depressant effect on the central nervous system, including its salts, isomers, and salts of isomers whenever the existence of those salts, isomers, and salts of isomers is possible within the specific chemical designation: (1) Amobarbital. (2) Pentobarbital. (3) Phencyclidines, including the following: (A) 1-(1-phenylcyclohexyl) piperidine (PCP). (B) 1-(1-phenylcyclohexyl) morpholine (PCM). (C) Any analog of phencyclidine which is added by the Attorney General by regulation pursuant to this paragraph. The Attorney General, or his or her designee, may, by rule or regulation, add additional analogs of phencyclidine to those enumerated in this paragraph after notice, posting, and hearing pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. The Attorney General shall, in the calendar year of the regular session of the Legislature in which the rule or regulation is adopted, submit a draft of a proposed bill to each house of the Legislature which would incorporate the analogs into this code. No rule or regulation shall remain in effect beyond January 1 after the calendar year of the regular session in which the draft of the proposed bill is submitted to each house. However, if the draft of the proposed bill is submitted during a recess of the Legislature exceeding 45 calendar days, the rule or regulation shall be effective until January 1 after the next calendar year. (4) Secobarbital. (5) Glutethimide. (6) Gamma-hydroxybutyrate, including its immediate precursors, isomers, esters, ethers, salts, and salts of isomers, esters, and ethers, including, but not limited to, gamma-butyrolactone. (f) Immediate precursors. Unless specifically excepted or unless listed in another schedule, any material, compound, mixture, or preparation which contains any quantity of the following substances: (1) Immediate precursor to amphetamine and methamphetamine: (A) Phenylacetone. Some trade or other names: phenyl-2 propanone; P2P; benzyl methyl ketone; methyl benzyl ketone. (2) Immediate precursors to phencyclidine (PCP): (A) 1-phenylcyclohexylamine. (B) 1-piperidinocyclohexane carbonitrile (PCC). (g) Hallucinogenic substances. Any of the following hallucinogenic substances: dronabinol (synthetic) in sesame oil and encapsulated in a soft gelatin capsule in a drug product approved by the federal Food and Drug Administration. SEC. 1.5. Section 11055 of the Health and Safety Code is amended to read: 11055. (a) The controlled substances listed in this section are included in Schedule II. (b) Any of the following substances, except those narcotic drugs listed in other schedules, whether produced directly or indirectly by extraction from substances of vegetable origin, or independently by means of chemical synthesis, or by combination of extraction and chemical synthesis: (1) Opium, opiate, and any salt, compound, derivative, or preparation of opium or opiate, with the exception of naloxone hydrochloride (N-allyl-14-hydroxy-nordihydromorphinone hydrochloride), but including the following: (A) Raw opium. (B) Opium extracts. (C) Opium fluid extracts. (D) Powdered opium. (E) Granulated opium. (F) Tincture of opium. (G) Apomorphine. (H) Codeine. (I) Ethylmorphine. (J) Hydrocodone. (K) Hydromorphone. (L) Metopon. (M) Morphine. (N) Oxycodone. (O) Oxymorphone. (P) Thebaine. (2) Any salt, compound, isomer, or derivative, whether natural or synthetic, of the substances referred to in paragraph (1), but not including the isoquinoline alkaloids of opium. (3) Opium poppy and poppy straw. (4) Coca leaves and any salt, compound, derivative, or preparation of coca leaves, but not including decocainized coca leaves or extractions which do not contain cocaine or ecgonine. (5) Concentrate of poppy straw (the crude extract of poppy straw in either liquid, solid, or powder form which contains the phenanthrene alkaloids of the opium poppy). (6) Cocaine, except as specified in Section 11054. (7) Ecgonine, whether natural or synthetic, or any salt, isomer, derivative, or preparation thereof. (c) Opiates. Unless specifically excepted or unless in another schedule, any of the following opiates, including its isomers, esters, ethers, salts, and salts of isomers, esters, and ethers whenever the existence of those isomers, esters, ethers, and salts is possible within the specific chemical designation, dextrorphan and levopropoxyphene excepted: (1) Alfentanyl. (2) Alphaprodine. (3) Anileridine. (4) Bezitramide. (5) Bulk dextropropoxyphene (nondosage forms). (6) Dihydrocodeine. (7) Diphenoxylate. (8) Fentanyl. (9) Isomethadone. (10) Levoalphacetylmethadol, also known as levo-alpha-acetylmethadol, levomethadyl acetate, or LAAM. This substance is authorized for the treatment of narcotic addicts under federal law (see Part 291 (commencing with Section 291.501) and Part 1308 (commencing with Section 1308.01) of Title 21 of the Code of Federal Regulations). (11) Levomethorphan. (12) Levorphanol. (13) Metazocine. (14) Methadone. (15) Methadone-Intermediate, 4-cyano-2-dimethylamino-4, 4-diphenyl butane. (16) Moramide-Intermediate, 2-methyl-3-morpholino-1, 1-diphenylpropane-carboxylic acid. (17) Pethidine (meperidine). (18) Pethidine-Intermediate-A, 4-cyano-1-methyl-4-phenylpiperidine. (19) Pethidine-Intermediate-B, ethyl-4-phenylpiperidine-4-carboxylate. (20) Pethidine-Intermediate-C, 1-methyl-4-phenylpiperidine-4-carboxylic acid. (21) Phenazocine. (22) Piminodine. (23) Racemethorphan. (24) Racemorphan. (25) Sufentanyl. (d) Stimulants. Unless specifically excepted or unless listed in another schedule, any material, compound, mixture, or preparation which contains any quantity of the following substances having a stimulant effect on the central nervous system: (1) Amphetamine, its salts, optical isomers, and salts of its optical isomers. (2) Methamphetamine, its salts, isomers, and salts of its isomers. (3) Dimethylamphetamine (N,N-dimethylamphetamine), its salts, isomers, and salts of its isomers. (4) N-Ethylmethamphetamine (N-ethyl, N-methylamphetamine), its salts, isomers, and salts of its isomers. (5) Phenmetrazine and its salts. (6) Methylphenidate. (e) Depressants. Unless specifically excepted or unless listed in another schedule, any material, compound, mixture, or preparation which contains any quantity of the following substances having a depressant effect on the central nervous system, including its salts, isomers, and salts of isomers whenever the existence of those salts, isomers, and salts of isomers is possible within the specific chemical designation: (1) Amobarbital. (2) Pentobarbital. (3) Phencyclidines, including the following: (A) 1-(1-phenylcyclohexyl) piperidine (PCP). (B) 1-(1-phenylcyclohexyl) morpholine (PCM). (C) Any analog of phencyclidine which is added by the Attorney General by regulation pursuant to this paragraph. The Attorney General, or his or her designee, may, by rule or regulation, add additional analogs of phencyclidine to those enumerated in this paragraph after notice, posting, and hearing pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. The Attorney General shall, in the calendar year of the regular session of the Legislature in which the rule or regulation is adopted, submit a draft of a proposed bill to each house of the Legislature which would incorporate the analogs into this code. No rule or regulation shall remain in effect beyond January 1 after the calendar year of the regular session in which the draft of the proposed bill is submitted to each house. However, if the draft of the proposed bill is submitted during a recess of the Legislature exceeding 45 calendar days, the rule or regulation shall be effective until January 1 after the next calendar year. (4) Secobarbital. (5) Glutethimide. (6) Gamma-hydroxybutyrate, including its immediate precursors, isomers, esters, ethers, salts, and salts of isomers, esters, and ethers, including, but not limited to, gamma-butyrolactone. (f) Immediate precursors. Unless specifically excepted or unless listed in another schedule, any material, compound, mixture, or preparation which contains any quantity of the following substances: (1) Immediate precursor to amphetamine and methamphetamine: Phenylacetone. Some trade or other names: phenyl-2 propanone; P2P; benzyl methyl ketone; methyl benzyl ketone. (2) Immediate precursors to phencyclidine (PCP): (A) 1-phenylcyclohexylamine. (B) 1-piperidinocyclohexane carbonitrile (PCC). SEC. 2. Section 11100 of the Health and Safety Code is amended to read: 11100. (a) Any manufacturer, wholesaler, retailer, or other person in this state who sells, transfers, or otherwise furnishes any of the following substances to any person or business entity in this state or any other state shall submit a report to the Department of Justice of all of those transactions: (1) Phenyl-2-propanone. (2) Methylamine. (3) Ethylamine. (4) D-lysergic acid. (5) Ergotamine tartrate. (6) Diethyl malonate. (7) Malonic acid. (8) Ethyl malonate. (9) Barbituric acid. (10) Piperidine. (11) N-acetylanthranilic acid. (12) Pyrrolidine. (13) Phenylacetic acid. (14) Anthranilic acid. (15) Morpholine. (16) Ephedrine. (17) Pseudoephedrine. (18) Norpseudoephedrine. (19) Phenylpropanolamine. (20) Propionic anhydride. (21) Isosafrole. (22) Safrole. (23) Piperonal. (24) Thionylchloride. (25) Benzyl cyanide. (26) Ergonovine maleate. (27) N-methylephedrine. (28) N-ethylephedrine. (29) N-methylpseudoephedrine. (30) N-ethylpseudoephedrine. (31) Chloroephedrine. (32) Chloropseudoephedrine. (33) Hydriodic acid. (34) Gamma-butyrolactone. (35) Any of the substances listed by the Department of Justice in regulations promulgated pursuant to subdivision (b). (b) The Department of Justice may adopt rules and regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code that add substances to subdivision (a) if the substance is a precursor to a controlled substance and delete substances from subdivision (a). However, no regulation adding or deleting a substance shall have any effect beyond March 1 of the year following the calendar year during which the regulation was adopted. (c) (1) Any manufacturer, wholesaler, retailer, or other person in this state, prior to selling, transferring, or otherwise furnishing any substance specified in subdivision (a) to any person or business entity in this state or any other state, shall require (A) a letter of authorization from that person or business entity that includes the currently valid business license number or federal Drug Enforcement Administration (DEA) registration number, the address of the business, and a full description of how the substance is to be used, and (B) proper identification from the purchaser. The requirement for a full description of how the substance is to be used does not require the person or business entity to reveal their chemical processes that are typically considered trade secrets and proprietary information. (2) For the purposes of this subdivision, "proper identification" for in-state or out-of-state purchasers includes a valid motor vehicle operator's license or other official and valid state-issued identification of the purchaser, or individual representing the purchasing business entity, which contains a photograph of the purchaser or purchasing individual, and includes the current domicile or mailing address of the purchaser or purchasing individual, other than a post office box number. "Proper identification" also includes the motor vehicle license number of the motor vehicle used by the purchaser or purchasing individual at the time of transfer or the name of the common carrier and the name and valid motor vehicle operator license number of the driver of the common carrier, and the signature of the purchaser, purchasing individual, or driver of the common carrier. The person selling, transferring, or otherwise furnishing any substance specified in subdivision (a) shall affix his or her signature as a witness to the signature and identification of the purchaser, purchasing individual, or driver of the common carrier. (d) Any manufacturer, wholesaler, retailer, or other person in this state who sells, transfers, or otherwise furnishes a substance specified in subdivision (a) to a person or business entity in this state or any other state shall, not less than 21 days prior to delivery of the substance, submit a report of the transaction, which includes the identification information specified in subdivision (c), to the Department of Justice. However, the Department of Justice may authorize the submission of the reports on a monthly basis with respect to repeated, regular transactions between the furnisher and the recipient involving the substance or substances if the Department of Justice determines that the following exist: (1) A pattern of regular supply of the substance or substances exists between the manufacturer, wholesaler, retailer, or other person who sells, transfers, or otherwise furnishes the substance or substances and the recipient of the substance or substances. (2) The recipient has established a record of utilization of the substance or substances for lawful purposes. (e) This section shall not apply to any of the following: (1) Any pharmacist or other authorized person who sells or furnishes a substance upon the prescription of a physician, dentist, podiatrist, or veterinarian. (2) Any physician, dentist, podiatrist, or veterinarian who administers or furnishes a substance to his or her patients. (3) Any manufacturer licensed by the State Department of Health Services or wholesaler licensed by the California State Board of Pharmacy who sells, transfers, or otherwise furnishes a substance to a licensed pharmacy, physician, dentist, podiatrist, veterinarian, or retail distributor as defined in subdivision (h), provided that the manufacturer or wholesaler submits records of any suspicious sales or transfers as determined by the Department of Justice. (4) (A) Except as otherwise provided in subparagraphs (B) and (C), this section shall not apply to any sale, transfer, furnishing, or receipt of any drug which contains ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine and which is lawfully sold, transferred, or furnished over the counter without a prescription pursuant to the federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.) or regulations adopted thereunder. (B) This section shall apply to preparations in solid dosage form containing ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine as the only active medicinal ingredient. (C) This section shall not apply to the sale of ordinary over-the-counter ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine products by retail distributors as defined by this article. However, in no instance shall the sale of any product not defined as ordinary over-the-counter ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine by retail distributors be greater than 24 grams of ephedrine, 24 grams of pseudoephedrine, 24 grams of norpseudoephedrine, or 24 grams of phenylpropanolamine in a single transaction. (D) Any ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine product subsequently removed from exemption pursuant to Section 814 of Title 21 of the United States Code shall similarly no longer be exempt from any state reporting or permitting requirement. (5) Any transfer of a substance specified in subdivision (a) for purposes of lawful disposal as waste. (f) (1) Any person specified in subdivision (a) or (d) who does not submit a report as required by that subdivision or who knowingly submits a report with false or fictitious information shall be punished by imprisonment in a county jail not exceeding six months, by a fine not exceeding five thousand dollars ($5,000), or by both the fine and imprisonment. (2) Any person specified in subdivision (a) or (d) who has previously been convicted of a violation of paragraph (1) shall, upon a subsequent conviction thereof, be punished by imprisonment in the state prison, or by imprisonment in a county jail not exceeding one year, by a fine not exceeding one hundred thousand dollars ($100,000), or by both the fine and imprisonment. (g) (1) It is unlawful for any manufacturer, wholesaler, retailer, or other person to sell, transfer, or otherwise furnish a substance specified in subdivision (a) to a person under 18 years of age. (2) It is unlawful for any person under 18 years of age to possess a substance specified in subdivision (a). (3) A violation of this subdivision is a misdemeanor. (h) For the purposes of this article, the following terms have the following meanings: (1) "Drug store" is any entity described in Code 5912 of the Standard Industrial Classification (SIC) Manual published by the United States Office of Management and Budget, 1987 edition. (2) "General merchandise store" is any entity described in Codes 5311 to 5399, inclusive, and Code 5499 of the Standard Industrial Classification (SIC) Manual published by the United States Office of Management and Budget, 1987 edition. (3) "Grocery store" is any entity described in Code 5411 of the Standard Industrial Classification (SIC) Manual published by the United States Office of Management and Budget, 1987 edition. (4) "Ordinary over-the-counter ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine product" means a product containing ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine that is required to be reported pursuant to this article and that is, if not a liquid, either sold in package sizes of not more than 3.0 grams of ephedrine base, 3.0 grams of pseudoephedrine base, 3.0 grams of norpseudoephedrine base, or 3.0 grams of phenylpropanolamine base, and is packaged in blister packs, each blister containing not more than two dosage units, or where the use of blister packs is technically infeasible, is packaged in unit dose packets or pouches; or, if a liquid, sold in package sizes of not more than 3.0 grams of ephedrine base, 3.0 grams of pseudoephedrine base, 3.0 grams of norpseudoephedrine base, or 3.0 grams of phenylpropanolamine base. (5) "Retail distributor" means a grocery store, general merchandise store, drugstore, or other related entity, the activities of which, as a distributor of ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine products, are limited exclusively to the sale of ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine products 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. "Retail distributor" includes an entity that makes a direct sale, but does not include the parent company of such an entity if the company is not involved in direct sales regulated by this article. (6) "Sale for personal use" means the sale in a single transaction to an individual customer for a legitimate medical use of a product containing ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine in dosages at or below that specified in subparagraph (C) of paragraph (4) of subdivision (e). "Sale for personal use" also includes the sale of those products to employers to be dispensed to employees from first-aid kits or medicine chests. SEC. 2.5. Section 11100 of the Health and Safety Code is amended to read: 11100. (a) Any manufacturer, wholesaler, retailer, or other person in this state who sells, transfers, or otherwise furnishes any of the following substances to any person or business entity in this state or any other state shall submit a report to the Department of Justice of all of those transactions: (1) Phenyl-2-propanone. (2) Methylamine. (3) Ethylamine. (4) D-lysergic acid. (5) Ergotamine tartrate. (6) Diethyl malonate. (7) Malonic acid. (8) Ethyl malonate. (9) Barbituric acid. (10) Piperidine. (11) N-acetylanthranilic acid. (12) Pyrrolidine. (13) Phenylacetic acid. (14) Anthranilic acid. (15) Morpholine. (16) Ephedrine. (17) Pseudoephedrine. (18) Norpseudoephedrine. (19) Phenylpropanolamine. (20) Propionic anhydride. (21) Isosafrole. (22) Safrole. (23) Piperonal. (24) Thionylchloride. (25) Benzyl cyanide. (26) Ergonovine maleate. (27) N-methylephedrine. (28) N-ethylephedrine. (29) N-methylpseudoephedrine. (30) N-ethylpseudoephedrine. (31) Chloroephedrine. (32) Chloropseudoephedrine. (33) Hydriodic acid. (34) Gamma-butyrolactone. (35) Any of the substances listed by the Department of Justice in regulations promulgated pursuant to subdivision (b). (b) The Department of Justice may adopt rules and regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code that add substances to subdivision (a) if the substance is a precursor to a controlled substance and delete substances from subdivision (a). However, no regulation adding or deleting a substance shall have any effect beyond March 1 of the year following the calendar year during which the regulation was adopted. (c) (1) Any manufacturer, wholesaler, retailer, or other person in this state, prior to selling, transferring, or otherwise furnishing any substance specified in subdivision (a) to any person or business entity in this state or any other state, shall require (A) a letter of authorization from that person or business entity that includes the currently valid business license number or federal Drug Enforcement Administration (DEA) registration number, the address of the business, and a full description of how the substance is to be used, and (B) proper identification from the purchaser. The requirement for a full description of how the substance is to be used does not require the person or business entity to reveal their chemical processes that are typically considered trade secrets and proprietary information. (2) For the purposes of this subdivision, "proper identification" for in-state or out-of-state purchasers includes a valid motor vehicle operator's license or other official and valid state-issued identification of the purchaser, or individual representing the purchasing business entity, which contains a photograph of the purchaser or purchasing individual, and includes the current domicile or mailing address of the purchaser or purchasing individual, other than a post office box number. "Proper identification" also includes the motor vehicle license number of the motor vehicle used by the purchaser or purchasing individual at the time of transfer or the name of the common carrier and the name and valid motor vehicle operator license number of the driver of the common carrier, and the signature of the purchaser, purchasing individual, or driver of the common carrier. The person selling, transferring, or otherwise furnishing any substance specified in subdivision (a) shall affix his or her signature as a witness to the signature and identification of the purchaser, purchasing individual, or driver of the common carrier. (d) Any manufacturer, wholesaler, retailer, or other person in this state who sells, transfers, or otherwise furnishes a substance specified in subdivision (a) to a person or business entity in this state or any other state shall, not less than 21 days prior to delivery of the substance, submit a report of the transaction, which includes the identification information specified in subdivision (c), to the Department of Justice. However, the Department of Justice may authorize the submission of the reports on a monthly basis with respect to repeated, regular transactions between the furnisher and the recipient involving the substance or substances if the Department of Justice determines that the following exist: (1) A pattern of regular supply of the substance or substances exists between the manufacturer, wholesaler, retailer, or other person who sells, transfers, or otherwise furnishes the substance or substances and the recipient of the substance or substances. (2) The recipient has established a record of utilization of the substance or substances for lawful purposes. (e) This section shall not apply to any of the following: (1) Any pharmacist or other authorized person who sells or furnishes a substance upon the prescription of a physician, dentist, podiatrist, or veterinarian. (2) Any physician, dentist, podiatrist, or veterinarian who administers or furnishes a substance to his or her patients. (3) Any manufacturer licensed by the State Department of Health Services or wholesaler licensed by the California State Board of Pharmacy who sells, transfers, or otherwise furnishes a substance to a licensed pharmacy, physician, dentist, podiatrist, veterinarian, or retail distributor as defined in subdivision (h), provided that the manufacturer or wholesaler submits records of any suspicious sales or transfers as determined by the Department of Justice. (4) (A) Any sale, transfer, furnishing, or receipt of any drug which contains ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine and which is lawfully sold, transferred, or furnished over the counter without a prescription pursuant to the federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.) or regulations adopted thereunder. However, this section shall apply to preparations in solid or liquid dosage form, except pediatric liquid forms, as defined, containing ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine where the individual transaction involves more than three packages or nine grams of ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine. (B) Any ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine product subsequently removed from exemption pursuant to Section 814 of Title 21 of the United States Code shall similarly no longer be exempt from any state reporting or permitting requirement, unless otherwise reinstated pursuant to subdivision (d) or (e) of Section 814 of Title 21 of the United States Code as an exempt product. (5) Any transfer of a substance specified in subdivision (a) for purposes of lawful disposal as waste. (f) (1) Any person specified in subdivision (a) or (d) who does not submit a report as required by that subdivision or who knowingly submits a report with false or fictitious information shall be punished by imprisonment in a county jail not exceeding six months, by a fine not exceeding five thousand dollars ($5,000), or by both the fine and imprisonment. (2) Any person specified in subdivision (a) or (d) who has previously been convicted of a violation of paragraph (1) shall, upon a subsequent conviction thereof, be punished by imprisonment in the state prison, or by imprisonment in a county jail not exceeding one year, by a fine not exceeding one hundred thousand dollars ($100,000), or by both the fine and imprisonment. (g) (1) Except as otherwise provided in subparagraph (A) of paragraph (4) of subdivision (e), it is unlawful for any manufacturer, wholesaler, retailer, or other person to sell, transfer, or otherwise furnish a substance specified in subdivision (a) to a person under 18 years of age. (2) Except as otherwise provided in subparagraph (A) of paragraph (4) of subdivision (e), it is unlawful for any person under 18 years of age to possess a substance specified in subdivision (a). (3) Notwithstanding any other law, it is unlawful for any retail distributor to (i) sell in a single transaction more than three packages of a product that he or she knows to contain ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine, or (ii) knowingly sell more than nine grams of ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine, other than pediatric liquids as defined. Except as otherwise provided in this section, the three package per transaction limitation or nine gram per transaction limitation imposed by this paragraph shall apply to any product that is lawfully sold, transferred, or furnished over the counter without a prescription pursuant to the federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.), or regulations adopted thereunder, unless exempted from the requirements of the federal Controlled Substances Act by the federal Drug Enforcement Administration pursuant to Section 814 of Title 21 of the United States Code. (4) A violation of this subdivision is a misdemeanor. (h) For the purposes of this article, the following terms have the following meanings: (1) "Drug store" is any entity described in Code 5912 of the Standard Industrial Classification (SIC) Manual published by the United States Office of Management and Budget, 1987 edition. (2) "General merchandise store" is any entity described in Codes 5311 to 5399, inclusive, and Code 5499 of the Standard Industrial Classification (SIC) Manual published by the United States Office of Management and Budget, 1987 edition. (3) "Grocery store" is any entity described in Code 5411 of the Standard Industrial Classification (SIC) Manual published by the United States Office of Management and Budget, 1987 edition. (4) "Pediatric liquid" means a nonencapsulated liquid whose unit measure according to product labeling is stated in milligrams, ounces, or other similar measure. In no instance shall the dosage units exceed 15 milligrams of phenylpropanolamine or pseudoephedrine per five milliliters of liquid product, except for liquid products primarily intended for administration to children under two years of age for which the recommended dosage unit does not exceed two milliliters and the total package content does not exceed one fluid ounce. (5) "Retail distributor" means a grocery store, general merchandise store, drugstore, or other related entity, the activities of which, as a distributor of ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine products, are limited exclusively to the sale of ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine products 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. "Retail distributor" includes an entity that makes a direct sale, but does not include the parent company of that entity if the company is not involved in direct sales regulated by this article. (6) "Sale for personal use" means the sale in a single transaction to an individual customer for a legitimate medical use of a product containing ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine in dosages at or below that specified in paragraph (3) of subdivision (g). "Sale for personal use" also includes the sale of those products to employers to be dispensed to employees from first-aid kits or medicine chests. (i) It is the intent of the Legislature that this section shall preempt all local ordinances or regulations governing the sale by a retail distributor of over-the-counter products containing ephedrine, pseudoephedrine, norpseudoephedrine, or phenylpropanolamine. SEC. 3. Section 11377 of the Health and Safety Code is amended to read: 11377. (a) Except as authorized by law and as otherwise provided in subdivision (b) or in Article 7 (commencing with Section 4211) of Chapter 9 of Division 2 of the Business and Professions Code, every person who possesses any controlled substance which is (1) classified in Schedule III, IV, or V, and which is not a narcotic drug, (2) specified in subdivision (d) of Section 11054, except paragraphs (13), (14), (15), and (20) of subdivision (d), (3) specified in paragraph (2) or (3) of subdivision (f) of Section 11054, or (4) specified in subdivision (d), (e), or (f) of Section 11055, unless upon the prescription of a physician, dentist, podiatrist, or veterinarian, licensed to practice in this state, shall be punished by imprisonment in a county jail for a period of not more than one year or in the state prison. (b) (1) Any person who violates subdivision (a) by unlawfully possessing a controlled substance specified in subdivision (f) of Section 11056, and who has not previously been convicted of such a violation involving a controlled substance specified in subdivision (f) of Section 11056, is guilty of a misdemeanor. (2) Any person who violates subdivision (a) by unlawfully possessing a controlled substance specified in subdivision (g) of Section 11056 is guilty of a misdemeanor. (c) In addition to any fine assessed under subdivision (b), the judge may assess a fine not to exceed seventy dollars ($70) against any person who violates subdivision (a), with the proceeds of this fine to be used in accordance with Section 1463.23 of the Penal Code. The court shall, however, take into consideration the defendant's ability to pay, and no defendant shall be denied probation because of his or her inability to pay the fine permitted under this subdivision. SEC. 4. Section 1.5 of this bill incorporates amendments to Section 11055 of the Health and Safety Code proposed by both this bill and SB 550. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2000, (2) each bill amends Section 11055 of the Health & Safety Code, and (3) this bill is enacted after SB 550, in which case Section 11055 of the Health and Safety Code as amended by SB 550, shall remain operative only until the operative date of this bill, at which time Section 1.5 of this bill shall become operative, and Section 1 of this bill shall not become operative. SEC. 5. Section 2.5 of this bill incorporates amendments to Section 11100 of the Health and Safety Code proposed by both this bill and AB 162. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2000, (2) each bill amends Section 11100 of the Health and Safety Code, and (3) this bill is enacted after AB 162, in which case Section 2 of this bill shall not become operative. SEC. 6. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.