The meeting was called to order by Chairman Richard P. Conaboy at 1:07 p.m.

Chairman Conaboy, Vice Chairman Michael Goldsmith, Commissioners Wayne A. Budd and Deanell R. Tacha, and Ex Officio Commissioner Mary Harkenrider participated via telephone. Vice Chairman Michael S. Gelacak and the following staff and guest participated in the Commissioners' Conference room: Staff Director John Kramer, Deputy Staff Director Paul K. Martin, General Counsel John R. Steer, and Tom Hutchison, representative of the Federal Public Defenders.

Amendment #10 "Primary" Methamphetamine Amendment

This amendment embodies the Commission's response to the directives in the 1996 Methamphetamine Control Act to enhance appropriately the penalties for methamphetamine trafficking offenses.

Motion made by Commissioner Goldsmith to adopt the "Goldsmith option," with the following changes in base offense level 26 of "At least 50 grams but less than 200 grams of Methamphetamine"; seconded by Commissioner Tacha.

Commissioners Budd, Conaboy, Goldsmith, and Tacha voted in the affirmative, with Commissioner Gelacak voting against. Passed, 4-1.

This amendment embodies the Commission's response to the directives in the 1996 Methamphetamine Control Act to determine whether the guidelines adequately punish environmental violations occurring in connection with precursor chemical offenses.

Motion made by Commissioner Tacha to adopt the proposed amendment to §2D1.1(b)(4); seconded by Commissioner Goldsmith. The motion was amended to provide a four-level increase under proposed §2D1.1(b)(4). Commissioner Tacha voted in the affirmative, with Commissioners Budd, Conaboy, Gelacak, and Goldsmith voting against. Failed, 1- 4.

Chairman Conaboy moved to adopt the proposed amendment, with language indicating that an upward departure may be warranted when the two-level enhancement does not adequately reflect the harm. Commissioner Goldsmith seconded the motion. Passed unanimously.

This amendment addresses whether to add other, targeted enhancements relating to methamphetamine importation and manufacturing.

Motion made by Commissioner Tacha to adopt the proposed amendment that includes both the importation and manufacturing of methamphetamine. Commissioner Tacha withdrew the motion.

Motion made by Commissioner Tacha to adopt the proposed amendment concerning the importation of methamphetamine, including in proposed §2D1.1(b)(4) of the bracketed language; seconded by Commissioner Goldsmith. Commissioners Budd, Conaboy, Goldsmith, and Tacha voted in the affirmative, with Commissioner Gelacak voting against. Passed, 4-1. Commissioner Gelacak stated that his problem with enhancing penalties for importation relates to the continuing concerns raised around the country by persons involved in the criminal justice system of inappropriately punishing people at the very low levels of the importation /distribution network. He stated that in many instances the Commission has agreed with those thoughts and concerns in principle, but once again after expressing concern in an area, when it is time to establish policy, the Commission does so by raising the penalties. He stated that the Commission ought to be consistent in this area and he does not think the Commission is.

Amendment #9 "Secondary" Methamphetamine Issues

This amendment encompasses some of the lesser issues from the 1996 Methamphetamine Control Act. The first issue relates to the enhancement in the prohibited equipment guideline for intent to manufacture methamphetamine. The second issue relates to the offense level for simple possession of a List I chemical. The third issue relates to the statutory index references for two new offenses.