BILL ANALYSIS                                                                                                                                                                                                    �







                      SENATE COMMITTEE ON PUBLIC SAFETY
                            Senator Loni Hancock, Chair              S
                             2011-2012 Regular Session               B

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          SB 260 (Cannella)                                           
          As Amended March 22, 2011 
          Hearing date:  April 26, 2011
          Health and Safety Code
          JM:mc

                    PSEUDOEPHEDRINE AND OTHER CONTROLLED CHEMICALS:

                               REPORTS OF TRANSACTIONS

                                           
                                       HISTORY

          Source:  Author

          Prior Legislation: SB 484 (Wright) - 2009-2010, failed passage 
          in Assembly Public Safety
                       AB 1455 (Hill) - 2009-2010, held in Senate 
          Judiciary
                       SB 1299 (Speier) - Ch. 646, Stats. 2006

          Support: Unknown

          Opposition:Drug Policy Alliance; California Public Defenders 
          Association




                                         KEY ISSUE
           
          SHOULD POSSESSION OF ONE-HALF POUND OR MORE OF PSEUDOEPHEDRINE, 
          EPHEDRINE OR SPECIFIED RELATED CHEMICALS, OR POSSESSION OF ONE-HALF 




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          POUND OR MORE OF A SUBSTANCE CONTAINING SUCH CHEMICALS, BE A FELONY, 
          PUNISHABLE BY A PRISON TERM OF 2, 4 OR 6 YEARS AND A FINE OF UP TO 
          $10,000?





                                       PURPOSE

          The purpose of this bill is to provide that any person or entity 
          that possesses one-half pound or more of pseudoephedrine, or a 
          specified related chemical, or one-half pound of a substance 
          containing pseudoephedrine or a related chemical, as specified, 
          is guilty of a felony, punishable by a prison term of 2, 4, or 6 
          years and a fine of up to $10,000, unless enhancements apply 
          based on the weight or volume of the substance.

           Existing law  provides a detailed regulatory scheme for the 
          production and distribution of specified chemicals, including 
          pseudoephedrine, which may be precursors to controlled 
          substances.  (Health & Saf. Code � 11100.)  Producers and users 
          of precursor chemicals must obtain permits from the Department 
          of Justice ("DOJ") or face prosecution for a misdemeanor or a 
          felony.  (Health & Saf. Code � 11106.)

           Existing law  provides that any person or entity that sells or 
          transfers specified chemical precursors must obtain and retain 
          the information about the purchaser's identity, business and how 
          the chemical is to be used.   (Health & Saf. Code � 11100, subd. 
          (c).)

           Existing law  requires any person or entity that sells, 
          transfers, or furnishes a controlled chemical must submit a 
          report to the DOJ, generally within 21 days of each 
          transaction.  A first-time violation is a misdemeanor 
          punishable by a jail term of up to 6 months, a fine of up to 
          5,000, or both.  A subsequent violation is an alternate 
          felony-misdemeanor, punishable by imprisonment for 16 months, 




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          two years or three years, a jail term of up to 1 year, a fine 
          of up to $100,000, or both.  (Health & Saf. Code � 11100, 
          subd. (f).)

           Existing law  provides that any person or entity that sells a 
          controlled chemical (precursor) with knowledge or intent that 
          the chemical will be used to manufacture a controlled substance 
          is guilty of a felony, punishable by imprisonment in state 
          prison for 16 months, two years or three years and a fine of up 
          to $10,000.  (Health & Saf. Code � 11104, subd. (a).)

           Existing law  provides that any person who manufactures compounds 
          ? or prepares methamphetamine is guilty of a felony punishable 
          by three, five or seven years in state prison.  (Health & Saf. 
          Code � 11379.6.)

           Existing law  provides that the possession of specified 
          chemicals, including pseudoephedrine, ephedrine and numerous 
          others, with the intent to manufacture methamphetamine is a 
          felony punishable by two, four, or six years in state prison.  
          (Health & Saf. Code � 11383.5.)

           Existing law  provides that any person who possesses precursor 
          chemicals, with the intent to sell or transfer such chemicals, 
          and with the knowledge that the chemicals will be used to 
          manufacture methamphetamine, is guilty of a felony, punishable 
          by imprisonment in state prison for 16 months, two year or three 
          years.  (Health & Saf. Code �11383.7.)

           Existing law  provides that the possession of specified chemicals 
          with the intent to manufacture methamphetamine is a felony, 
          punishable by imprisonment in the state prison for 2, 4, or 6 
          years.  (Health and Saf. Code � 11383.5)

           This bill  provides that any person who possesses one-half pound 
          or more of pseudoephedrine or ephedrine is guilty of a felony, 
          punishable by imprisonment in state prison for 2, 4 or 6 years 
          and a fine of up to $10,000.





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           This bill  provides that any person who possesses one-half pound 
          or more of a substance containing pseudoephedrine or ephedrine 
          is guilty of a felony, punishable by imprisonment in state 
          prison for 2, 4 or 6 years and a fine of up to $10,000.

           This bill  provides that its provisions "shall not apply to drug 
          manufacturers licensed by this state or persons authorized by 
          regulation of the California State Board of Pharmacy to possess 
          those substances or a combination of substances, or to persons 
          as otherwise authorized by law to possess" the substance 
          described by this bill.  


                    RECEIVERSHIP/OVERCROWDING CRISIS AGGRAVATION
          
          For the last several years, severe overcrowding in California's 
          prisons has been the focus of evolving and expensive litigation. 
           As these cases have progressed, prison conditions have 
          continued to be assailed, and the scrutiny of the federal courts 
          over California's prisons has intensified.  

          On June 30, 2005, in a class action lawsuit filed four years 
          earlier, the United States District Court for the Northern 
          District of California established a Receivership to take 
          control of the delivery of medical services to all California 
          state prisoners confined by the California Department of 
          Corrections and Rehabilitation ("CDCR").  In December of 2006, 
          plaintiffs in two federal lawsuits against CDCR sought a 
          court-ordered limit on the prison population pursuant to the 
          federal Prison Litigation Reform Act.  On January 12, 2010, a 
          three-judge federal panel issued an order requiring California 
          to reduce its inmate population to 137.5 percent of design 
          capacity -- a reduction at that time of roughly 40,000 inmates 
          -- within two years.  The court stayed implementation of its 
          ruling pending the state's appeal to the U.S. Supreme Court.  

          On Monday, June 14, 2010, the U.S. Supreme Court agreed to hear 
          the state's appeal of this order and, on Tuesday, November 30, 
          2010, the Court heard oral arguments.  A decision is expected as 




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          early as this spring.  

          In response to the unresolved prison capacity crisis, in early 
          2007 the Senate Committee on Public Safety began holding 
          legislative proposals which could further exacerbate prison 
          overcrowding through new or expanded felony prosecutions.     

           This bill  does appear to aggravate the prison overcrowding 
          crisis described above.




                                      COMMENTS


           1.Need for This Bill
           
          According to the author:

               SB 260 helps law enforcement more effectively and more 
               swiftly deal with persons who possess exorbitant 
               amounts of ephedrine or pseudoephedrine.  
               Specifically, it would make it a felony for an 
               individual to possess one-half pound or more of these 
               substances.  

               Despite efforts by law enforcement and lawmakers in 
               recent years, methamphetamine (meth) remains a major 
               problem in California and especially in the Central 
               Valley.  In 2005, Congress tried to address the 
               growing problem of meth labs by requiring that 
               ephedrine and pseudoephedrine, two of the primary 
               ingredients used to make meth, only be available 
               behind the counter at pharmacies.  The law limits 
               customers to one package per day and requires them to 
               sign a logbook documenting the purchase.  

               These increased restrictions have had little impact as 




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               producers have learned to get around the law.  The 
               most common practice is called "smurfing," in which 
               makers of meth pay people to purchase packages of 
               ephedrine or pseudoephedrine as they move from store 
               to store.  Most pharmacies do not share purchase 
               information; if police suspect someone is buying 
               exorbitant amounts of the drug, they have to go from 
               store to store to compare logbooks to verify their 
               suspicion.

               When law enforcement finds an individual in possession 
               of large amounts of ephedrine or pseudoephedrine, they 
               are required to prove the individual intended to 
               manufacture meth to convict him or her of a felony.  
               Since a half pound of these drugs is an amount too 
               large to serve any individual medical purpose, the 
               "intent to manufacture" requirement is unnecessary and 
               only slows down the process of catching and stopping 
               likely manufacturers of meth.

           2.Elements of the Crime Proposed by This Bill; Intent  
                
          Court decisions on possession of controlled substances 
          (illegal drugs) hold that a defendant must be aware that he 
          or she possesses a substance and be aware of its nature as 
          a controlled substance.  (People v. Redrick (19610 55 
          Cal.2d 282, 285; People v. Tripp (2007) 151 Cal.App.4th 
          1504, 1507.)  The defendant need not know what specific 
          drug he or she possesses.  (People v. Romero (55 
          Cal.App.4tth 147.)













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          Consistent with the case law on possession of controlled 
          substances, it is likely that the only intent or knowledge 
          elements in the crime created by this bill would be 
          knowledge of possessing or controlling the substance and 
          knowledge that the substance is a controlled or restricted 
          chemical.  The prosecution would not be required to prove 
          that the defendant intended to make methamphetamine, or 
          that the defendant knew that a person to whom the chemical 
          would be transferred intended to make methamphetamine, or 
          even that the chemicals could be used to make 
          methamphetamine.  

          3.  Existing Crimes Applicable to Possession of Pseudoephedrine 
            Compared to This Bill  

          A number of crimes apply to possession of pseudoephedrine under 
          existing law.  Felony penalties apply where a person possesses 
          pseudoephedrine with the intent to make methamphetamine.  
          (Health & Saf. Code � 11383.5.)  Felony penalties also apply 
          where a person possesses pseudoephedrine with the intent to 
          transfer the chemical and the knowledge that it will be used to 
          make methamphetamine.  (Health & Saf. Code � 11383.7.) Another 
          statute - part of a detailed regulatory scheme for chemicals 
          that can be used to make controlled substances, but that may 
          have other uses - provides that sale or transfer of such 
          chemicals with knowledge or intent that they be used to make a 
          controlled substance is a felony.  

          This bill differs from existing law in that this bill does not 
          require the prosecution to prove that the defendant intended to 
          make methamphetamine or knew that the pseudoephedrine he or she 
          possessed would be used to make methamphetamine.  The defendant 
          must only possess pseudoephedrine in an amount proscribed by 
          this bill.  As is discussed in the preceding comment, it is 
          likely that the prosecution need only prove that the defendant 
          knew the substance was a controlled chemical.  
           
          SHOULD A NEW FELONY BE CREATED CRIMINALIZING THE POSSESSION OF 
          SPECIFIED SUBSTANCES WHERE PROSECUTORS WOULD NOT HAVE TO PROVE 




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          THAT A DEFENDANT INTENDED TO MAKE METHAMPHETAMINE, OR KNEW THAT 
          THE CHEMICAL THEY POSSSESSED WOULD BE USED TO MAKE 
          METHAMPHETAMINE?

          4.  One-half Pound is a Substantial Amount of Pseudoephedrine  

          Federal law allows a person to purchase, over-the-counter, no 
          more than 9 grams of pseudoephedrine per month.  Nine grams is 
          approximately 6.25 packages of 48 tablets, generally the 
          standard package amount.  Approximately 20 of these packages 
          would equal an ounce of pseudoephedrine.  Approximately 160 
          packages would equal one-half pound of pseudoephedrine.  Under 
          federal law, a person can purchase no more than 3.6 grams of 
          pseudoephedrine per day.

          5  Proportionality:  This Bill Would Impose Identical Punishments 
            for Possession of One-Half Pound of Pure Pseudoephedrine and 
            Possession of One-Half Pound of a Substance Containing Some 
            Pseudoephedrine  

          The bill covers cases where the defendant either possessed 
          one-half pound of pure pseudoephedrine or one-half pound of a 
          substance containing pseudoephedrine.  Many products contain 
          pseudoephedrine and other drugs and substances.  One-half pound 
          of a substance containing pseudoephedrine could contain 
          significantly less pseudoephedrine than one-half pound of pure 
          pseudoephedrine.  A person who possesses pure pseudoephedrine 
          could make much more methamphetamine, and make methamphetamine 
          more easily, than a person who possesses a substance containing 
          pseudoephedrine.  A person who can obtain pure pseudoephedrine 
          is likely to have ties to sophisticated drug traffickers.   

          As drafted, this bill could be used to impose the same 
          punishment on two defendants who possessed very different 
          amounts of pseudoephedrine and who may present very different 
          levels of threat to public safety.  

          SHOULD A DEFENDANT WHO POSSESSES ONE-HALF POUND OF PURE 
          PSEUDOEPHEDRINE RECEIVE THE SAME PUNISHMENT AS A DEFENDANT WHO 











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          POSSESES ONE-HALF POUND OF A SUBSTANCE THAT CONTAINS 
          PSEUDOEPHEDRINE AS ONLY ONE OF ITS INGREDIENTS, AS THE PURE 
          PSEUDOEPHEDRINE CAN PRODUCE MORE FINISHED METHAMPHETAMINE?


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