```

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10447 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                               H. R. 10447

 To authorize sanctions relating to the production and distribution of 
     illicit synthetic narcotics by the People's Republic of China.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           December 17, 2024

  Mr. Auchincloss (for himself, Mr. Newhouse, Mr. Krishnamoorthi, Mr. 
  Moolenaar, Mr. Torres of New York, Mr. Khanna, Mr. Johnson of South 
 Dakota, Mr. Dunn of Florida, and Mrs. Steel) introduced the following 
 bill; which was referred to the Committee on Foreign Affairs, and in 
 addition to the Committees on Financial Services, the Judiciary, and 
     Oversight and Accountability, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
 To authorize sanctions relating to the production and distribution of 
     illicit synthetic narcotics by the People's Republic of China.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``CCP Fentanyl Sanctions Act''.

SEC. 2. CODIFICATION OF EXECUTIVE ORDER 14059.

    United States sanctions provided for in Executive Order 14059 (86 
Fed. Reg. 71549; Imposing Sanctions on Foreign Persons Involved in the 
Global Illicit Drug Trade), as in effect on the day before the date of 
the enactment of this Act, shall remain in effect and continue to 
apply.

SEC. 3. AUTHORIZATION OF SANCTIONS.

    (a) In General.--On and after the date that is 180 days after the 
date of the enactment of this Act, the President is authorized to 
impose the sanction described in subsection (b) with respect to a 
foreign person if the President determines that the person--
            (1) has engaged in, or attempted to engage in, activities 
        or transactions in the People's Republic of China, including in 
        Hong Kong and Macau, or with respect to persons domiciled in, 
        organized under the laws of, or with their principal place of 
        business in such jurisdictions, that have contributed to, or 
        pose a significant risk of contributing to, the international 
        proliferation of illicit synthetic narcotics or their means of 
        production;
            (2) has knowingly or with reckless disregard has received 
        any property or interest in property that--
                    (A) constitutes or is derived from proceeds of 
                activities or transactions in the People's Republic of 
                China, including in Hong Kong and Macau, or with 
                respect to persons domiciled in, organized under the 
                laws of, or with their principal place of business in 
                such jurisdictions, that have materially contributed 
                to, or pose a significant risk of materially 
                contributing to, the international proliferation of 
                illicit synthetic narcotics or their means of 
                production; or
                    (B) was used or may have been intended to be used 
                to commit or to facilitate activities or transactions 
                in the People's Republic of China, including in Hong 
                Kong and Macau, or with respect to persons domiciled 
                in, organized under the laws of, or with their 
                principal place of business in such jurisdictions, that 
                have materially contributed to, or pose a significant 
                risk of materially contributing to, the international 
                proliferation of illicit synthetic narcotics or their 
                means of production;
            (3) is a PRC owned or operated port or ship that, knowingly 
        or with reckless disregard, facilitates the shipment and 
        transportation of illicit synthetic narcotics or their 
        precursors (including in such circumstances where those 
        precursors are improperly labeled during the customs process);
            (4) is a PRC entity that produces illicit synthetic 
        narcotics or their precursors and, knowingly or with reckless 
        disregard, sells those precursors to persons involved in the 
        proliferation of illicit synthetic narcotics;
            (5) is a PRC online marketplace that, knowingly or with 
        reckless disregard, facilitates the sale of, exchange of, 
        shipment of, transshipment of, conveyance of, or payment for 
        illicit synthetic narcotics;
            (6) is a covered PRC government entity;
            (7) is a PRC entity that knowingly or with reckless 
        disregard, provides material support related to illicit 
        synthetic narcotics to a covered PRC government entity;
            (8) has established an entity that engages in, has engaged 
        in, or is designed to engage in evading sanctions that would 
        otherwise be imposed pursuant to this Act; or
            (9) is acting directly or indirectly for or on behalf of a 
        person referred to in paragraphs (1) through (8).
    (b) Sanction Described.--
            (1) In general.--The sanction described in this subsection 
        is the exercise all of the powers granted to the President 
        under the International Emergency Economic Powers Act (50 
        U.S.C. 1701 et seq.) to the extent necessary to block and 
        prohibit all transactions in property and interests in property 
        of a foreign person if such property or interests in property 
        are in the United States, come within the United States, or are 
        or come within the possession or control of a United States 
        person.
            (2) Implementation.--The President may exercise the 
        authorities provided to the President under sections 203 and 
        205 of the International Emergency Economic Powers Act (50 
        U.S.C. 1702 and 1704) to the extent necessary to carry out this 
        section.
            (3) Penalties.--The penalties provided for in subsections 
        (b) and (c) of section 206 of the International Emergency 
        Economic Powers Act (50 U.S.C. 1705) shall apply to any person 
        who violates, attempts to violate, conspires to violate, or 
        causes a violation of any prohibition of this section, or an 
        order or regulation prescribed under this section, to the same 
        extent that such penalties apply to a person that commits an 
        unlawful act described in subsection section 206(a) of such Act 
        (50 U.S.C. 1705(a)).
            (4) Exceptions.--
                    (A) Exception for intelligence and law enforcement 
                actions.--Sanctions under this section shall not apply 
                with respect to--
                            (i) any activity subject to the reporting 
                        requirements under title V of the National 
                        Security Act of 1947 (50 U.S.C. 3091 et seq.); 
                        or
                            (ii) any authorized intelligence or law 
                        enforcement activities of the United States.
                    (B) Exception relating to importation of goods.--
                            (i) In general.--The authorities and 
                        requirements to impose sanctions authorized 
                        under this section shall not include the 
                        authority or requirement to impose sanctions on 
                        the importation of goods.
                            (ii) Good defined.--In this subparagraph, 
                        the term ``good'' means any article, natural or 
                        manmade substance, material, supply or 
                        manufactured product, including inspection and 
                        test equipment, and excluding technical data.
    (c) Waiver.--The President may waive the application of sanctions 
under this section with respect to a foreign person for renewable 
periods of not more than 180 days each if the President determines and 
reports to Congress that such a waiver is in national interests of the 
United States.
    (d) Rule of Construction.--Nothing in this section may be construed 
to limit the authority of the President to designate or sanction 
persons pursuant to an applicable Executive order or a Federal statute, 
including the International Emergency Economic Powers Act (50 U.S.C. 
1701 et seq.).
    (e) Consideration of Certain Information in Imposing Sanctions.--In 
determining whether to impose sanctions under subsection (a), the 
President shall consider--
            (1) information provided jointly by the chairperson and 
        ranking member of each of the appropriate congressional 
        committees; and
            (2) credible information obtained by other countries and 
        nongovernmental organizations that monitor violations of human 
        rights.
    (f) Requests by Appropriate Congressional Committees.--
            (1) In general.--Not later than 120 days after receiving a 
        request that meets the requirements of paragraph (2) with 
        respect to whether a foreign person has engaged in an activity 
        described in subsection (a), the President shall--
                    (A) determine if that person has engaged in such an 
                activity; and
                    (B) submit a classified or unclassified report to 
                the chairperson and ranking member of the committee or 
                committees that submitted the request with respect to 
                that determination that includes--
                            (i) a statement of whether or not the 
                        President imposed or intends to impose 
                        sanctions with respect to the person; and
                            (ii) if the President imposed or intends to 
                        impose sanctions, a description of those 
                        sanctions.
            (2) Requirements.--A request under paragraph (1) with 
        respect to whether a foreign person has engaged in an activity 
        described in subsection (a) shall be submitted to the President 
        in writing jointly by the chairperson and ranking member of one 
        of the appropriate congressional committees.

SEC. 4. FINANCIAL SANCTIONS.

    The Secretary of the Treasury may, in consultation with the 
Secretary of State, prohibit the opening of, or impose strict 
conditions on the maintenance of, correspondent accounts or payable-
through accounts in the United States by a foreign financial 
institution that the President determines has, on or after the date of 
the enactment of this Act, knowingly conducted or facilitated a 
significant transaction or transactions on behalf of a foreign person 
described in section 3(a).

SEC. 5. DEFINITIONS.

    In this Act--
            (1) the term ``appropriate congressional committees'' 
        means--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs; and
                    (B) the Committee on Foreign Affairs and the Select 
                Committee on Strategic Competition between the United 
                States and the Chinese Communist Party of the House of 
                Representatives;
            (2) the term ``covered PRC government entity'' includes--
                    (A) the PRC government, a PRC government official, 
                or any entity or instrumentality thereof, that is 
                identified by the United States Government as knowingly 
                or recklessly facilitating the flow of illicit 
                synthetic narcotics into the United States or otherwise 
                providing material support to a foreign person 
                described in section 3(a);
                    (B) any subsidiary, affiliate, or successor of an 
                entity described in subparagraph (A); and
                    (C) any person owned or controlled by, or that 
                provides material support to or for, or receives 
                materially support from an entity described in 
                subparagraph (A);
            (3) the term ``foreign person'' means a person that is not 
        a United States person;
            (4) the term ``illicit synthetic narcotics'' means--
                    (A) controlled substances, as such term is defined 
                in section 102(6) of the Controlled Substances Act (21 
                U.S.C. 802(6)), with the exception of--
                            (i) substances of natural origins; and
                            (ii) medications that are lawful under the 
                        laws of the United States and the Drug 
                        Enforcement Administration has provided an 
                        import permit to the importing organization for 
                        the import of such medication;
                    (B) listed chemicals, as such term is defined in 
                section 102(33) of the Controlled Substances Act (21 
                U.S.C. 802(33)); and
                    (C) active pharmaceutical ingredients or chemicals 
                that are used in the production of controlled 
                substances described in subparagraphs (A) and (B);
            (5) the term ``knowingly'', with respect to conduct, a 
        circumstance, or a result, means that a person has actual 
        knowledge, or should have known, of the conduct, the 
        circumstance, or the result;
            (6) the term ``PRC'' means the People's Republic of China; 
        and
            (7) the term ``United States person'' means any United 
        States citizen, permanent resident alien, an entity organized 
        under the laws of the United States or any jurisdiction within 
        the United States (including a foreign branch of such an 
        entity), or any person in the United States.
                                 <all>
```