Senator Chuck Grassley today released the following statement after the Drug Enforcement Administration used its administrative authority to control five chemicals used to make synthetic marijuana products that when used have similar or possibly more severe side effects than smoking marijuana.  These substances are easily available at local stores or online.  Grassley brought attention to the growing problem of K2 in a speech on the floor of the U.S. Senate in September.  In that speech, Grassley highlighted the life of a young Iowan who died after smoking K2.  That speech follows today's comment from Grassley and the Drug Enforcement Administration announcement.

"As more people experiment with these substances with tragic results, it's increasingly clear that K2 is anything but safe.  These dangerous substances are easily obtained and are being used across the country.  Tragically, people, including a young Iowan, have died or been seriously injured because of these products. The DEA's action is a positive step forward, but this step is only temporary.  The Congress needs to take action and permanently control these substances, and I'll work with my colleagues to make sure this gets done."

Here's is a copy of the Drug Enforcement Administration's press release.

CHEMICALS USED IN "SPICE" AND "K2" TYPE PRODUCTS NOW UNDER FEDERAL CONTROL AND REGULATION

DEA Will Study Whether To Permanently Control Five Substances

Contact: DEA Public Affairs

(202) 307-7977

WASHINGTON, D.C. - The United States Drug Enforcement Administration (DEA) today exercised its emergency scheduling authority to control five chemicals (JWH-018, JWH-073, JWH-200, CP-47,497, and cannabicyclohexanol) used to make so-called "fake pot" products.  Except as authorized by law, this action makes possessing and selling these chemicals or the products that contain them illegal in the United States.  This emergency action was necessary to prevent an imminent threat to public health and safety.  The temporary scheduling action will remain in effect for at least one year while the DEA and the United States Department of Health and Human Services (DHHS) further study whether these chemicals should be permanently controlled.

The Final Order was published today in the Federal Register to alert the public to this action.  These chemicals will be controlled for at least 12 months, with the possibility of a six month extension.  They are designated as Schedule I substances, the most restrictive category under the Controlled Substances Act.  Schedule I substances are reserved for those substances with a high potential for abuse, no accepted medical use for treatment in the United States and a lack of accepted safety for use of the drug under medical supervision.

Over the past couple of years, smokeable herbal products marketed as being "legal" and as providing a marijuana-like high, have become increasingly popular, particularly among teens and young adults. These products consist of plant material that has been coated with research chemicals that claim to mimic THC, the active ingredient in marijuana, and are sold at a variety of retail outlets, in head shops, and over the Internet.  These chemicals, however, have not been approved by the FDA for human consumption, and there is no oversight of the manufacturing process. Brands such as "Spice," "K2," "Blaze," and "Red X Dawn" are labeled as herbal incense to mask their intended purpose.

Since 2009, DEA has received an increasing number of reports from poison control centers, hospitals and law enforcement regarding these products. At least 16 states have already taken action to control one or more of these chemicals. The Comprehensive Crime Control Act of 1984 amends the Controlled Substances Act (CSA) to allow the DEA Administrator to place a substance temporarily in schedule I when it is necessary to avoid an imminent threat to the public safety. Emergency room physicians report that individuals that use these types of products experience serious side effects which include : convulsions, anxiety attacks, dangerously elevated heart rates, increased blood pressure, vomiting, and disorientation.

"Young people are being harmed when they smoke these dangerous 'fake pot' products and wrongly equate the products' 'legal' retail availability with being 'safe'," said DEA Administrator Michele M. Leonhart.  "Parents and community leaders look to us to help them protect their kids, and we have not let them down.  Today's action, while temporary, will reduce the number of young people being seen in hospital emergency rooms after ingesting these synthetic chemicals to get high."

Here is a copy of Grassley's September 22, 2010 speech.

Prepared Statement of Senator Chuck Grassley

The Growing Problem of K2

Wednesday, September 22, 2010

Video of Senator Grassley's speech can be found by clicking here.

Mr. President, as a parent and grandparent I have long been concerned about the dangers that face our kids. I have been especially concerned about the large amount of dangerous drugs in this country.

It is clear that drug dealers will stop at nothing to get our kids hooked on drugs.  All too often we learn of new and emerging drug threats to our communities that often have a negative impact on our youth.

When these drug threats emerge it is crucial that we unite to halt the spread of the problem before it consumes families and communities.

Today we are confronted with new and very dangerous substances packaged as innocent products.  Specifically, kids are able to go online or to the nearest shopping mall and purchase incense laced with chemicals that alter the mind and body.

These products are commonly referred to as K2 or Spice among other names.

In the chart behind me, you can see the packaged varieties of K2 products.  Kids and drug users are smoking this product in order to obtain a "legal high."  It is believed that K2 products emerged on the scene beginning about 4 or 5 years ago.  Their use spread quickly throughout Europe and the U.S.

According to a study conducted by the European Centre for Drugs and Drug Addiction, most of the chemicals found in K2 products are not reported on the label.  This study concluded that these chemicals are not listed because there is a deliberate marketing strategy to represent this product as a natural substance.

However, K2 is anything but natural.

Most of the chemicals the DEA has identified within K2 products where invented by Dr. John W. Huffman of Clemson University for research purposes.  These synthetic chemicals were never intended to be used for any other purpose other than for research.

They were never tested on humans and no long term effects of their use are currently known.

As more and more people are experimenting with K2 it is becoming increasingly evident that K2 use is anything but safe.

The American Association of Poison Control Centers reports significant increases in the amount of calls concerning these products.  There were only 13 calls related to K2 use reported for 2009.  There have been over 1,000 calls concerning K2 use in 2010 to date.

This is a drastic increase in a short amount of time.

Common effects reported by emergency room doctors include : increased agitation, elevated heart rate and blood pressure, hallucinations, and seizures.  Effects from the highs from K2 use are reported to last several hours and up to one week.

Dr. Huffman has stated that since so little research has been conducted on K2 chemicals using any one of them would be like, "playing Russian roulette."

In fact, Dr. Anthony Scalzo, a professor of emergency medicine at St. Louis University, reports that these chemicals are significantly more potent than marijuana.  Dr. Scalzo states that the amount of chemicals in K2 varies from product to product so no one can be sure exactly the amount of the drug they are putting in their body.  Dr. Scalzo reports that this can lead to significant problems such as altering the state of mind, addiction, injury, and even death.

According to various news articles across the nation, K2 can cause serious erratic and criminal behavior.

In Mooresville, Indiana police arrested a group of teens after they were connected to a string of burglaries while high on K2.  The local County Attorney prosecuting the case stated this was an unusual crime spree.  These kids were not the type who are normally seen in the criminal justice system.  The County Attorney stated that these kids had, "no prior record, good grades, athletes, so that got me wondering: is there a correlation between K2 and the crime?"

Another case in Honolulu, Hawaii shows police arrested a 23-year-old man after he tried to throw his girlfriend off an 11^th floor balcony after smoking K2.

A 14 year-old boy in Missouri nearly threw himself out of a 5^th story window after smoking K2.  Once the teen got over his high he denied having any suicidal intentions.  Doctors believe he was hallucinating at the time of this incident.

K2 use is also causing serious health problems and increased visits to the emergency room.

A Louisiana teen said he became very ill after trying K2.  The teen said he experienced numbness starting at his feet and traveling to his head.  He was nauseous, light-headed and was having hallucinations. This teen stated that K2 is being passed around at school.  The teen also stated that many people were trying it without fear, assuming it was safe because it was legal.

Another case has a teenager in Indiana being admitted to the emergency room with a blood pressure of 248/134 after testing positive for K2.

A teen in Texas, became temporarily paralyzed from the waist down after smoking K2.

Another teen in Texas had a heart attack after smoking K2 but fortunately survived this event.

Regrettably, K2 use also has deadly consequences.

The picture behind me is of David Rozga.  David was a recent 18 year-old Indianola, Iowa High School Graduate.  According to his parents and friends, David was a bright, energetic, talented student who loved music, was popular, and active in his church.  David was looking forward to attending the University of Northern Iowa this fall.

On June 6, 2010 David, along with some of his friends, smoked a package of K2 thinking it was nothing more than a little fun.  David and his friends purchased this product at a mall in Des Moines after hearing about it from some college students who were home for the summer.  After smoking this product, David's friends reported that David became highly agitated and terrified. When he got home, he found a family shotgun and committed suicide 90 minutes after smoking K2.

The Indianola police believe David was under the influence of K2 at the time of his death.  David's parents and many in the community who knew David were completely shocked and saddened by this event.  As a result, the Iowa Pharmacy Board placed an emergency ban on K2 products in Iowa which began on July 21, 2010.

David's tragic death may be the first case in the United States of K2 use leading to someone's death, but sadly it was only the beginning.

A month after David's tragic death police report that, a 28-year-old Middletown, Indiana mother of two passed away after smoking a lethal dose of K2.  This woman's godson reported that anyone could get K2 easily because it can be sold to anybody at any price at any time.

This last August, a recent 19-year-old Lake Highlands High School graduate in Dallas, Texas passed away after smoking K2.  The medical examiner confirmed that this boy had K2 in his system at the time of his death.

These incidents throughout the country give me great concern that K2 use is a dangerous and growing problem.

Twelve states, including Iowa, have acted to ban the sale and possession of the chemicals found in K2 products.  Many more states, counties and communities throughout the country have proposed bans or are in the process of banning these products.

However, a recent article in the Des Moines Register highlights the fact that some stores are working around these bans by changing some of the chemicals and relabeling the products.

I believe it is time we have a national discussion about these dangerous substances.  I hope in the coming weeks and months that my colleagues will begin to take notice of this issue.

As Co-Chairman of the Senate Drug Caucus it is my hope that we will have a hearing on this issue in the not-too-distant future.

It is important to fully understand the magnitude and implications of allowing these products to remain legal in the U.S.

Mr. President, it is clear that the sale and use of K2 products is a growing problem.

People believe these products are safe because they can buy them online or at the nearest shopping mall.  We need to do a better job at educating the public and our communities about the dangers these products present.  We need to nip this problem in the bud before it grows and leads to more tragedy.

I urge my colleagues to join me as we explore positive actions to stem the use of K2.

-30-

Q.  Why is fighting fraud in Medicare and Medicaid important?

A.  The federal debt has ballooned to a record $14 trillion, and the deficit this year alone will be $1.3 trillion.  Congress is currently debating whether it will make budget cuts in a short-term funding bill needed to continue federal programs for the remainder of the fiscal year.  Tough decisions need to be made, and cuts will impact many Americans.  Medicare and Medicaid spending is one of the largest expenditures in the federal budget.  Every dollar lost to fraud shortchanges taxpayers and the beneficiaries who rely on the health care programs.

Q. What's the scope of Medicare and Medicaid fraud?

A.  The best estimates are that between five and eight percent of the money spent on Medicare and Medicaid is lost to fraud every year.  The federal government spent $502 billion on Medicare and $379 billion on Medicaid in fiscal 2009.  So, it is estimated between $40 billion and $70 billion was lost to fraud that year.

Q.  What has been done to curb this fraud?

A.  The federal False Claims Act is one of the most effective tools against health care fraud.  I authored a major update of this law, in 1986, with Rep. Howard Berman of California.  Since then, it has recovered more than $28 billion and deterred billions of dollars in additional fraud against the taxpayers.  The qui tam whistleblower provisions that were created by our 1986 update are among the most successful elements of the False Claims Act.  These provisions allow average citizens who learn about fraud to report it and file suit to recover tax dollars that have been lost to fraud.  This year, the False Claims Act brought in $3 billion in recoveries, with $2.5 billion from health care fraud cases, and nearly $2.4 billion of the recoveries thanks to the qui tam whistleblowers provisions.  I've worked repeatedly to fortify and protect this statute.  It's effective and, as a result, there are constant attempts to weaken or even gut the law.

This civil recovery of public dollars that otherwise would be lost to fraud is a great victory in the fight against fraud.  It ought to be buttressed by a robust criminal prosecution.  That effort is falling short.  At the end of last year, I asked the Attorney General and the Secretary of Health and Human Services to account for the falling number of criminal prosecutions.  Administration leaders promote the value of a special fraud prevention and enforcement task force known as HEAT.  That stands for the Health Care Fraud Prevention & Enforcement Action Team.  The new health care law dedicates additional federal dollars to HEAT and related efforts.  In fiscal 2009, there were a record number of criminal health care fraud defendants, but the conviction rate for health care violations is flat, resulting in a falling conviction rate.  Of the 803 criminal defendants charged that year, only 583 were convicted or plea bargained.  That's a 72 percent conviction rate compared to past rates that topped 90 percent.  It looks like things are improving since fiscal 2009, but continued oversight of the Justice Department is needed.  To strengthen the ability of government watchdogs to see what's actually happening with tax dollars directed to anti-fraud efforts, more information should be included in publicly available Health Care Fraud and Abuse Control Account reports each year.  For example, 75 percent of the discretionary dollars that Congress has directed to HEAT, goes to the Department of Health and Human Services for vague initiatives labeled oversight.  There should be accountability as to how exactly this money is used to achieve criminal prosecutions.

I also want to make certain that qui tam settlements do justice to taxpayers.  They never should be just a cost of doing business for corporations and contractors who were engaged in fraud.  The Justice Department is reluctant to share details of settlements reached under the False Claims Act, despite the taxpayer interest in making this information transparent.  So, I will introduce legislation this year to require the Attorney General to report each year details about the settlements to Congress.  Again, it's a matter of accountability.

Q.  What can be done to prevent fraud in the first place?

A.  I also plan to re-introduce my comprehensive bill to protect health care dollars.  The bill is a package of common sense initiatives to fight fraud, waste and abuse in taxpayer-sponsored health care programs.  As spending on these programs continues to grow, Congress should act quickly to pass these reforms.  A major component of this reform effort of mine would give the government more time to evaluate the legitimacy of Medicare providers before payment is required when there's suspicion of foul play.  Without this change, we're left with a pay-and-chase situation that only enables fraud against the taxpayers.  My legislation would help program officials better detect fraud with new disclosure requirements.  It would enhance coordination among federal agencies responsible for fighting fraud.  And it would make penalties tougher and apply them more broadly than they are today.

The Iowa Community Development LC will use the 2010 New Markets Tax Credit allocation to offer financing with below-market interest rate and flexible terms to support and incentivize businesses to locate or expand in Iowa.

"This allocation will help encourage investment and spur economic activity in Iowa," Grassley said.

The Treasury Department selects firms to receive an allocation of tax credits through the New Markets Tax Credit Program.  This program permits taxpayers to receive a credit against federal income taxes for making qualified equity investments in designated community development entities.  Substantially all of the qualified equity investments must be used to provide investments in low-income communities.

-30-