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[House Report 110-673]
[From the U.S. Government Publishing Office]

110th Congress                                            Rept. 110-673
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part I

======================================================================

 
  MERIDA INITIATIVE TO COMBAT ILLICIT NARCOTICS AND REDUCE ORGANIZED 
                    CRIME AUTHORIZATION ACT OF 2008

                                _______
                                

                  May 22, 2008.--Ordered to be printed

                                _______
                                

   Mr. Berman, from the Committee on Foreign Affairs, submitted the 
                               following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 6028]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Foreign Affairs, to whom was referred the 
bill (H.R. 6028) to authorize law enforcement and security 
assistance, and assistance to enhance the rule of law and 
strengthen civilian institutions, for Mexico and the countries 
of Central America, and for other purposes, having considered 
the same, reports favorably thereon with an amendment and 
recommends that the bill as amended do pass.

                           TABLE OF CONTENTS

                                                                   Page
The Amendment....................................................     2
Summary..........................................................    16
Background and Purpose for the Legislation.......................    16
Hearings.........................................................    18
Committee Consideration..........................................    19
Votes of the Committee...........................................    19
Committee Oversight Findings.....................................    19
New Budget Authority and Tax Expenditures........................    19
Congressional Budget Office Cost Estimate........................    20
Performance Goals and Objectives.................................    22
Constitutional Authority Statement...............................    22
New Advisory Committees..........................................    22
Congressional Accountability Act.................................    22
Earmark Identification...........................................    22
Section-by-Section Analysis and Discussion.......................    22
Additional Views.................................................    35

                             The Amendment

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Merida Initiative 
to Combat Illicit Narcotics and Reduce Organized Crime Authorization 
Act of 2008''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Definitions.

                     TITLE I--ASSISTANCE FOR MEXICO

Sec. 101. Findings.
Sec. 102. Declarations of policy.

          Subtitle A--Law Enforcement and Security Assistance

Sec. 111. Purposes of assistance.
Sec. 112. Authorization of assistance.
Sec. 113. Activities supported.
Sec. 114. Limitation on assistance.
Sec. 115. Authorization of appropriations.

   Subtitle B--Assistance to Enhance the Rule of Law and Strengthen 
                         Civilian Institutions

Sec. 121. Sense of Congress.
Sec. 122. Authorization of assistance.
Sec. 123. Activities supported.
Sec. 124. Authorization of appropriations.

         TITLE II--ASSISTANCE FOR COUNTRIES OF CENTRAL AMERICA

Sec. 201. Findings.
Sec. 202. Declarations of policy.

          Subtitle A--Law Enforcement and Security Assistance

Sec. 211. Purposes of assistance.
Sec. 212. Authorization of assistance.
Sec. 213. Activities supported.
Sec. 214. Limitation on assistance.
Sec. 215. Authorization of appropriations.

   Subtitle B--Assistance to Enhance the Rule of Law and Strengthen 
                         Civilian Institutions

Sec. 221. Authorization of assistance.
Sec. 222. Activities supported.
Sec. 223. Authorization of appropriations.

                  TITLE III--ADMINISTRATIVE PROVISIONS

Sec. 301. Conditions on provision of assistance.
Sec. 302. Limitations on provision of assistance.
Sec. 303. Limitation on monitoring.
Sec. 304. Exemption from prohibition on assistance for law enforcement 
forces.
Sec. 305. Relationship to other authority.
Sec. 306. Rule of construction.

           TITLE IV--SUPPORT ACTIVITIES IN THE UNITED STATES

Sec. 401. Report on reduction of drug demand in the United States.
Sec. 402. Reduction of southbound flow of illegal weapons.
Sec. 403. Reduction of southbound flow of illegal precursor chemicals 
and bulk-cash transfers.
Sec. 404. Report.

                   TITLE V--MISCELLANEOUS PROVISIONS

Sec. 501. Coordinator of United States Government Activities to 
Implement the Merida Initiative.
Sec. 502. Metrics and oversight mechanisms.
Sec. 503. Report.
Sec. 504. Sense of Congress.
Sec. 505. Sunset.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Appropriations and the 
                Committee on Foreign Affairs of the House of 
                Representatives; and
                    (B) the Committee on Appropriations and the 
                Committee on Foreign Relations of the Senate.
            (2) Countries of central america.--The term ``countries of 
        Central America'' means Belize, Costa Rica, El Salvador, 
        Guatemala, Honduras, Nicaragua, and Panama and includes Haiti 
        and the Dominican Republic.
            (3) Merida initiative.--The term ``Merida Initiative'' 
        means the program announced by the United States and Mexico on 
        October 22, 2007, to fight illicit narcotics trafficking and 
        criminal organizations throughout the Western Hemisphere.

                     TITLE I--ASSISTANCE FOR MEXICO

SEC. 101. FINDINGS.

    Congress finds the following:
            (1) The drug crisis facing the United States remains a 
        significant national security threat.
            (2) The Government Accountability Office (GAO) estimates 
        that 90 percent of illegal drugs that enter the United States 
        come through the Mexico-Central America corridor.
            (3) The same smuggling routes that are used to bring 
        illegal narcotics north are utilized to illegally distribute 
        arms, precursor chemicals, and bulk cash transfers south.
            (4) Drug gangs that operate in the United States, Mexico, 
        and Central America have become sophisticated and vertically-
        integrated operations expert at penetrating the United States-
        Mexico border.
            (5) Narcotics-related activity and expanding cross-border 
        trafficking is dangerously undermining the security environment 
        for our neighbors to the South, as well as in the United 
        States.
            (6) Mexico can and has served as a critical ally and 
        partner in stemming the flow of illegal narcotics into the 
        United States. Under the leadership of Mexican President Felipe 
        Calderon, the United States and Mexico have initiated an 
        approach of joint responsibility to confront the threat of 
        illicit narcotics trafficking and organized crime in the 
        Western Hemisphere.
            (7) The spread of illicit narcotics through United States 
        borders and the violence that accompanies it cannot be halted 
        without a comprehensive interdiction and security strategy 
        planned and executed jointly with our southern neighbors.
            (8) In March 2007, President George W. Bush and Mexican 
        President Calderon held a summit in the Mexican City of Merida 
        and agreed that the United States and Mexico must expand 
        bilateral and regional cooperation to fight violence stemming 
        from narcotrafficking and regional criminal organizations.
            (9) On October 22, 2007, the United States and Mexico 
        issued a joint statement announcing the Merida Initiative, a 
        program to fight illicit narcotics trafficking and criminal 
        organizations throughout the Western Hemisphere.
            (10) In the joint statement--
                    (A) Mexico pledged to ``strengthen its operational 
                capabilities to more effectively fight drug-traffickers 
                and organized crime'';
                    (B) the United States pledged ``to intensify its 
                efforts to address all aspects of drug trafficking 
                (including demand-related portions) and continue to 
                combat trafficking of weapons and bulk currency to 
                Mexico''; and
                    (C) both nations pledged to ``augment cooperation, 
                coordination, and the exchange of information to fight 
                criminal organizations on both sides of the border''.
            (11) A long-term strategy to adequately contain the 
        northbound and southbound flows of illicit narcotics along the 
        United States-Mexico border, as well as protect the vast and 
        free flow of trade, will require the United States to partner 
        with its southern neighbors in their efforts to build the 
        capacity of their own law enforcement agencies and enhance the 
        rule of law, as well as to fortify United States illicit 
        narcotics reduction efforts.

SEC. 102. DECLARATIONS OF POLICY.

    Congress makes the following declarations:
            (1) The Merida Initiative is a critical part of a growing 
        partnership and strategy of cooperation between the United 
        States and its southern neighbors to confront the illegal flow 
        of narcotics as well as violence and organized crime that it 
        has spawned.
            (2) The United States needs to ensure the free flow of 
        trade between the United States and its critical neighbor, 
        Mexico, while ensuring that the United States border is 
        protected from illegal smuggling into the United States.
            (3) The United States must intensify efforts to stem the 
        flow of precursor chemicals, bulk cash, and the so-called 
        ``iron-river'' of arms illegally flowing south, as well as 
        demand-related aspects of the illicit narcotics phenomenon.
            (4) The United States should provide its expertise to meet 
        immediate security needs along the United States-Mexico border, 
        fight the production and flow of illicit narcotics, and support 
        Mexico in its efforts to do the same.
            (5) The United States should support the Government of 
        Mexico's work to expand its own law enforcement to 
        independently conduct successful counternarcotics and organized 
        crime-related operations.
            (6) The Merida Initiative reflects the belief that Mexican 
        military involvement is required in the short-term to stabilize 
        the security situation, but that most aspects of this problem 
        fall into the realm of law enforcement.
            (7) In implementing the Merida Initiative, the United 
        States should work with its southern neighbors to mitigate the 
        so-called ``balloon effect'' in which successful 
        counternarcotics efforts shift narcotics-related activities to 
        other areas.
            (8) The United States should coordinate with the Congress 
        of the Union of Mexico to ensure full partnership on the 
        programs authorized under this Act.

          Subtitle A--Law Enforcement and Security Assistance

SEC. 111. PURPOSES OF ASSISTANCE.

    The purposes of assistance under this subtitle are to--
            (1) enhance the ability of the Government of Mexico, in 
        cooperation with the United States, to control illicit 
        narcotics production, trafficking, drug trafficking 
        organizations, and organized crime;
            (2) help build the capacity of law enforcement forces of 
        Mexico to control illicit narcotics production, trafficking, 
        drug trafficking organizations, and organized crime;
            (3) aid the support role that the armed forces of Mexico is 
        providing to law enforcement agencies of Mexico as the security 
        situation in Mexico is initially stabilized;
            (4) protect and secure the United States-Mexico border, and 
        control illegal activity going south as well as north;
            (5) strengthen the bilateral and regional ties of the 
        United States with Mexico and the countries of Central America 
        by assuming shared responsibility and offering concrete 
        assistance in this area of great mutual concern;
            (6) strengthen respect for internationally recognized human 
        rights and the rule of law in efforts to stabilize the security 
        environment relating to illicit narcotics production and 
        trafficking and organized crime; and
            (7) support the judicial branches of the Government of 
        Mexico and the countries of Central America, as well as support 
        anti-corruption efforts in those countries; and
            (8) respond to the direct requests of the Government of 
        Mexico that the United States reduce the demand for illicit 
        narcotics in the United States, stem the flow of illegal arms 
        into Mexico from the United States, stem the flow of illegal 
        bulk-cash transfers into Mexico from the United States, and 
        stem the flow of illegal precursor chemicals into Mexico from 
        the United States.

SEC. 112. AUTHORIZATION OF ASSISTANCE.

    To carry out the purposes of section 111, the President is 
authorized to provide assistance for Mexico to support the activities 
described in section 113.

SEC. 113. ACTIVITIES SUPPORTED.

    (a) In General.--Activities that may be supported by assistance 
under section 112 include the following:
            (1) Counternarcotics and countertrafficking.--To assist in 
        building the capacity of law enforcement and security forces of 
        Mexico to eradicate illicit narcotics trafficking and reduce 
        trafficking-fueled violence, including along the United States-
        Mexico border, including assistance such as--
                    (A) radar and aerial surveillance equipment;
                    (B) land and maritime interdiction equipment and 
                training, including--
                            (i) transport helicopters and night-
                        operating capabilities;
                            (ii) surveillance platform planes; and
                            (iii) maintenance and training relating to 
                        maintenance of aircraft; and
                    (C) training of security and law enforcement units 
                to plan and execute counternarcotics operations.
            (2) Port, airport, and related security.--To assist in 
        monitoring and controlling the United States-Mexico border and 
        the border between Mexico and Central America to combat illicit 
        narcotics trafficking, including assistance such as--
                    (A) computer infrastructure and equipment;
                    (B) secure communications networks; and
                    (C) nonintrusive monitoring technology.
            (3) Operational technology.--
                    (A) Assistance objectives.--To assist in 
                investigation and collection of intelligence against 
                illicit drug trafficking organizations, including--
                            (i) expansion of intelligence databases; 
                        and
                            (ii) hardware, operating systems, and 
                        training for updating the communications 
                        networks of security agencies.
                    (B) Sense of congress.--It is the sense of Congress 
                that--
                            (i) operational technology transferred to 
                        the Government of Mexico for intelligence or 
                        law enforcement purposes should be used solely 
                        for the purposes for which the operational 
                        technology was intended; and
                            (ii) the Government of Mexico should take 
                        all necessary steps to ensure that use of 
                        operational technology described in clause (i) 
                        is consistent with United States and Mexican 
                        law, including protections of freedom of 
                        expression, freedom of movement, freedom of 
                        association, and full respect of privacy 
                        rights.
            (4) Public security and law enforcement.--To assist in the 
        modernization of law enforcement entities and prevent crime, 
        including assistance and activities such as--
                    (A) law enforcement training and equipment, 
                including--
                            (i) transport helicopters;
                            (ii) surveillance aircraft, including 
                        Cessna Caravan light utility aircraft;
                            (iii) nonintrusive inspection equipment; 
                        and
                            (iv) human rights training for law 
                        enforcement units;
                    (B) enhancement of the Government of Mexico's 
                financial intelligence unit;
                    (C) safety-related equipment for law enforcement 
                officers and prosecutors, including protective vests 
                and helmet sets;
                    (D) reduction of drug demand in Mexico, including 
                activities such as--
                            (i) assistance to the National Council 
                        Against Addictions (CONADIC) to establish an 
                        Internet web-based support network;
                            (ii) establishment of a national data 
                        center to support the CONADIC; and
                            (iii) training of CONADIC and other agency 
                        staff in best practices and outreach and 
                        treatment programs, and design of a methodology 
                        to implement best practices in conjunction with 
                        the National Network for Technological 
                        Transfers in Addiction.
    (b) Provision of Helicopters.--Funds made available to carry out 
this subtitle to provide helicopters to the Government of Mexico, 
shall, to the extent possible, be used to procure or provide 
helicopters that are of a similar manufacture to those helicopters 
already in the possession of the Government of Mexico in order to 
facilitate integration of those assets into Mexico's existing air 
fleet.
    (c) Sense of Congress.--It is the sense of Congress that the United 
States shall ensure, to the extent possible, that assistance under this 
subtitle is made available and cross-utilized by the armed forces of 
Mexico and relevant law enforcement agencies of the Government of 
Mexico, including the Mexican Office of the Attorney General.

SEC. 114. LIMITATION ON ASSISTANCE.

    (a) Limitation.--No assistance may be provided under this subtitle 
to any unit of the armed forces of Mexico or any unit of the law 
enforcement agencies of Mexico if the Secretary of State determines 
that, consistent with section 620J of the Foreign Assistance Act of 
1961 (22 U.S.C. 2378d), there is credible evidence that such unit has 
committed gross violations of human rights.
    (b) Exception.--The limitation in subsection (a) shall not apply if 
the Secretary of State determines and reports to the appropriate 
congressional committees that the Government of Mexico is taking 
effective measures to bring the responsible members of the unit of the 
armed forces or law enforcement agencies, as the case may be, to 
justice.

SEC. 115. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--To carry out this subtitle, there are authorized 
to be appropriated to the President $350,000,000 for fiscal year 2008, 
$390,000,000 for fiscal year 2009, and $40,000,000 for fiscal year 
2010.
    (b) Limitation.--
            (1) In general.--Of the amounts appropriated pursuant to 
        the authorization of appropriations under subsection (a)--
                    (A) not more than $205,000,000 may be provided as 
                assistance for the armed forces of Mexico for 2008;
                    (B) not more than $120,000,000 may be provided as 
                assistance for the armed forces of Mexico for 2009; and
                    (C) not more than $9,000,000 may be provided as 
                assistance for the armed forces of Mexico for 2010.
            (2) Additional limitation.--None of the funds appropriated 
        pursuant to the authorization of appropriations under 
        subsection (a) for fiscal year 2009 may be provided as 
        assistance for the Mexican Secretariat of Public Security until 
        the President determines that the Mexican National Registry of 
        Police Personnel (Registro Nacional de Personal Policial) is 
        operational at the federal, state, and local levels.
    (c) Availability.--Amounts appropriated pursuant to the 
authorization of appropriations under subsection (a) are--
            (1) authorized to remain available until expended; and
            (2) in addition to funds otherwise available for such 
        purposes, including funds available under chapter 8 of part I 
        of the Foreign Assistance Act of 1961 (22 U.S.C. 2291 et seq.).

   Subtitle B--Assistance to Enhance the Rule of Law and Strengthen 
                         Civilian Institutions

SEC. 121. SENSE OF CONGRESS.

    It is the sense of Congress that, as a critical part of a joint, 
comprehensive security, counternarcotics, and organized crime 
initiative, the United States should support--
            (1) programs of the United States Agency for International 
        Development and other United States agencies focused on 
        strengthening civilian institutions and rule of law programs in 
        Mexico at the federal, state, and local levels; and
            (2) anti-corruption, transparency, and human rights 
        programs to ensure due process and expand a culture of 
        lawfulness in Mexico.

SEC. 122. AUTHORIZATION OF ASSISTANCE.

    The President is authorized to provide assistance for Mexico to 
support the activities described in section 123.

SEC. 123. ACTIVITIES SUPPORTED.

    Activities that may be supported by assistance under section 122 
include the following:
            (1) Institution building and rule of law.--To assist 
        Mexico's efforts to expand the rule of law and build the 
        capacity, transparency, and trust in government institutions, 
        including assistance such as--
                    (A) rule of law and systemic improvements in 
                judicial and criminal justice sector institutions, 
                including--
                            (i) courts management and prosecutorial 
                        capacity building;
                            (ii) prison reform activities, including 
                        those relating to anti-gang and anti-organized 
                        crime efforts;
                            (iii) anti-money laundering programs;
                            (iv) victim and witness protection and 
                        restitution; and
                            (v) promotion of transparent oral trials 
                        via training for the judicial sector;
                    (B) police professionalization, including--
                            (i) training regarding use of force;
                            (ii) human rights education and training;
                            (iii) training regarding evidence 
                        preservation and chain of custody; and
                            (iv) enhanced capacity to vet candidates;
                    (C) support for the Mexican Office of the Attorney 
                General, including--
                            (i) judicial processes improvement and 
                        coordination;
                            (ii) enhancement of forensics capabilities;
                            (iii) data collection and analyses;
                            (iv) case tracking and management;
                            (v) financial intelligence functions; and
                            (vi) maintenance of data systems.
            (2) Anti-corruption, transparency, and human rights.--To 
        assist law enforcement and court institutions in Mexico to 
        develop mechanisms to ensure due process and proper oversight 
        and to respond to citizen complaints, including assistance such 
        as--
                    (A) enhancement of polygraph capability in the 
                Mexican Police agency (SSP);
                    (B) support for greater transparency and 
                accountability in the Mexican legal system, including--
                            (i) establishment of a center in the 
                        Mexican Office of the Attorney General for 
                        receipt of citizen complaints;
                            (ii) establishment of clerk of the court 
                        system to track cases and pretrial detentions;
                            (iii) reorganization of human and financial 
                        resources systems; and
                            (iv) equipping and training of criminal 
                        investigators; and
                    (C) promotion of human rights, including--
                            (i) support for human rights organizations, 
                        bar associations, and law schools; and
                            (ii) training for police, prosecutors, and 
                        corrections officers.
            (3) Prevention.--To assist in the prevention of individuals 
        from participating in illicit narcotics-related violent 
        activities, such as--
                    (A) establishment of programs that address domestic 
                violence and increase school attendance rates; and
                    (B) expansion of intervention programs, including 
                after-school programs and programs for at-risk and 
                criminal involved youth.
            (4) Development.--To assist in the development of areas 
        where lack of jobs breeds illicit narcotics-related violence, 
        including--
                    (A) expansion of alternative livelihood programs, 
                including job creation programs and rural development 
                programs and the provision of microenterprise 
                development assistance under title VI of chapter 2 of 
                part I of the Foreign Assistance Act of 1961 (22 U.S.C. 
                2211 et seq.); and
                    (B) establishment of gang reeducation and training 
                programs.

SEC. 124. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--To carry out this subtitle, there are authorized 
to be appropriated to the President $120,000,000 for fiscal year 2008, 
$100,000,000 for fiscal year 2009, and $110,000,000 for fiscal year 
2010.
    (b) Availability.--Amounts appropriated pursuant to the 
authorization of appropriations under subsection (a) are--
            (1) authorized to remain available until expended; and
            (2) in addition to funds otherwise available for such 
        purposes, including funds available under chapter 8 of part I 
        of the Foreign Assistance Act of 1961.

         TITLE II--ASSISTANCE FOR COUNTRIES OF CENTRAL AMERICA

SEC. 201. FINDINGS.

    Congress finds the following:
            (1) A May 2007 report by the United Nations Office on Drugs 
        and Crime (UNODC) argues that countries of Central America are 
        particularly vulnerable to violent crimes fueled by illicit 
        narcotics trafficking and corruption because such countries are 
        geographically located between the world's largest drug 
        producing and drug consuming countries.
            (2) According to Assistant Secretary of State for Western 
        Hemisphere Affairs Thomas Shannon, ``[T]he nations of Central 
        America have committed to collective action to address these 
        common security concerns. Through the Central American 
        Integration System (SICA), the governments have expressed the 
        political resolve to join forces to strengthen regional 
        security; however they lack sufficient tools and capacity to 
        execute such will.''.
            (3) Crime and violence in Central America has increased in 
        recent years.
            (4) In 2005, the estimated murder rate per 100,000 people 
        was roughly 56 in El Salvador, 41 in Honduras, and 38 in 
        Guatemala.
            (5) Youth gang violence has been one of the major factors 
        contributing to increased violence in Central America, with the 
        United States Southern Command estimating that there are 70,000 
        gang members in Central America.
            (6) Many Central American youth gangs are transnational and 
        negatively impact both Central America and the United States.
            (7) Youth gang violence cannot be curbed only through 
        enforcement, but must also include a substantial investment in 
        prevention, rehabilitation, and reintegration.
            (8) Deportees sent from the United States back to Central 
        America, while not a central cause of crime and violence, can 
        contribute to crime and violence in Central America.
            (9) Guatemala has experienced a surge in murders of women 
        in recent years, many of which have been committed by illicit 
        narcotics traffickers and other organized criminals.
            (10) Violence between partners, particularly violence by 
        men against their wives or girlfriends, is widespread in 
        Central America, and an international violence against women 
        survey comparing selected countries in Africa, Latin America, 
        Europe, and Asia found that 60 percent of women in Costa Rica--
        often considered the least violent country in Central America--
        reported having experienced domestic violence during their 
        lives.
            (11) Weak justice systems in the countries of Central 
        America have led to a high level of impunity in Central 
        America.
            (12) The United Nations International Commission against 
        Impunity in Guatemala (CICIG) was recently created to begin to 
        address impunity related to illegally armed groups in 
        Guatemala.
            (13) The United States and the Central American Integration 
        System (SICA) signed an agreement in July 2007 to improve 
        intelligence sharing and policing and to institutionalize 
        dialogue on regional security.

SEC. 202. DECLARATIONS OF POLICY.

    Congress makes the following declarations:
            (1) A long-term United States strategy to curb illicit 
        narcotics trafficking must include Central America, which is 
        the corridor for 90 percent of the cocaine that transits from 
        South America to the United States.
            (2) It is in the interest of the United States to support a 
        long-term commitment to assisting the countries of Central 
        America to improve security by combating illicit narcotics 
        trafficking, investing in prevention programs, increasing 
        intelligence sharing, improving regional security coordination, 
        improving border and customs capabilities, professionalizing 
        police, justice, and other government officials, and funding 
        programs to reintegrate deportees from the United States.
            (3) The countries of Central America are committed to 
        combating illicit narcotics trafficking and its related 
        violence and crime, including gang violence, and the United 
        States must seize the opportunity to work in partnership with 
        Central America.

          Subtitle A--Law Enforcement and Security Assistance

SEC. 211. PURPOSES OF ASSISTANCE.

    The purposes of assistance authorized by this subtitle are to--
            (1) enhance the ability of governments of countries of 
        Central America to control illicit narcotics production, 
        trafficking, illicit drug trafficking organizations, and 
        organized crime;
            (2) help build the capacity of law enforcement agencies of 
        the countries of Central America to control illicit narcotics 
        production, trafficking, illicit drug trafficking 
        organizations, and organized crime;
            (3) strengthen the bilateral ties of the United States with 
        the countries of Central America by offering concrete 
        assistance in this area of great mutual concern;
            (4) strengthen respect for internationally recognized human 
        rights and the rule of law in efforts to stabilize the security 
        environment relating to illicit narcotics production and 
        trafficking and organized crime; and
            (5) support the judicial branch of governments of the 
        countries of Central America, as well as to support anti-
        corruption efforts in such countries.

SEC. 212. AUTHORIZATION OF ASSISTANCE.

    To carry out the purposes of section 211, the President is 
authorized to provide assistance for the countries of Central America 
to support the activities described in section 213.

SEC. 213. ACTIVITIES SUPPORTED.

    Activities that may be supported by assistance under section 212 
include the following:
            (1) Counternarcotics, countertrafficking, and related 
        security.--
                    (A) Assistance objectives.--To assist in the 
                following:
                            (i) Investigation and collection of 
                        intelligence against illicit narcotics 
                        trafficking.
                            (ii) Combating illegal trafficking in arms.
                            (iii) Prevention of bulk currency 
                        smuggling.
                            (iv) Collection of information on crime and 
                        establishment of a regional database.
                    (B) Assistance.--Activities under subparagraph (A) 
                may include--
                            (i) automated fingerprint identification 
                        systems (AFIS);
                            (ii) vetting sensitive investigative units 
                        to collaborate on counternarcotics at the 
                        federal, state, and local levels;
                            (iii) technical assistance to develop 
                        strong and effective financial crimes 
                        investigation units;
                            (iv) maritime security support, including 
                        refurbishing and procuring patrol boats;
                            (v) firearms interdiction training; and
                            (vi) illicit narcotics demand reduction 
                        programs.
            (2) Public security and law enforcement.--To assist in 
        building the capacity of the police in countries of Central 
        America, supporting efforts to combat transnational gangs, 
        investing in gang prevention and rehabilitation programs, and 
        programs for the reintegration of deportees, including 
        assistance such as--
                    (A) funding to continue the United States-Central 
                American Integration System (SICA) Dialogue;
                    (B) youth gang prevention activities, including 
                targeted education for at-risk youth, vocational 
                training and funding of community centers in areas with 
                high youth gang violence rates and other risk factors;
                    (C) programs to reintegrate deportees from the 
                United States back into the societies of their home 
                countries to avoid further criminal activity;
                    (D) transnational anti-gang initiatives;
                    (E) police professionalization, including--
                            (i) training regarding use of force;
                            (ii) human rights education and training;
                            (iii) training regarding evidence 
                        preservation and chain of custody; and
                            (iv) enhanced capacity to vet candidates;
                    (F) utilization of the International Law 
                Enforcement Academy (ILEA) in El Salvador consistent 
                with traditional respect for human rights and 
                professional police practices;
                    (G) police training programs of the Organization of 
                American States (OAS );
                    (H) police equipment, including communications 
                equipment; and
                    (I) anti-domestic violence education programs and 
                women's shelters.

SEC. 214. LIMITATION ON ASSISTANCE.

    (a) Limitation.--No assistance may be provided under this subtitle 
to any unit of the armed forces of a country of Central America or any 
unit of the law enforcement agencies of a country of Central America if 
the Secretary of State determines that, consistent with section 620J of 
the Foreign Assistance Act of 1961 (22 U.S.C. 2378d), there is credible 
evidence that such unit has committed gross violations of human rights.
    (b) Exception.--The limitation in subsection (a) shall not apply if 
the Secretary of State determines and reports to the appropriate 
congressional committees that the government of the relevant country of 
Central America is taking effective measures to bring the responsible 
members of the unit of the armed forces or law enforcement agencies, as 
the case may be, to justice.

SEC. 215. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--To carry out this subtitle, there are authorized 
to be appropriated to the President $60,000,000 for fiscal year 2008, 
$80,000,000 for fiscal year 2009, and $80,000,000 for fiscal year 2010.
    (b) Availability.--Amounts appropriated pursuant to the 
authorization of appropriations under subsection (a) are--
            (1) authorized to remain available until expended; and
            (2) in addition to funds otherwise available for such 
        purposes, including funds under chapters 2 and 8 of part I of 
        the Foreign Assistance Act of 1961 (22 U.S.C. 2166 and 2291 et 
        seq.).
    (c) Limitation.--Of the amounts appropriated pursuant to the 
authorization of appropriations under subsection (a) for any fiscal 
year, at least $15,000,000 should be made available to carry out 
section 213(2)(B).

   Subtitle B--Assistance to Enhance the Rule of Law and Strengthen 
                         Civilian Institutions

SEC. 221. AUTHORIZATION OF ASSISTANCE.

     The President is authorized to provide assistance for the 
countries of Central America to support the activities described in 
section 222.

SEC. 222. ACTIVITIES SUPPORTED.

    Activities that may be supported by assistance under section 221 
include assistance in building the capacity, transparency, and trust in 
the justice system of the countries of Central America and reducing 
high impunity rates in the countries of Central America, including 
assistance such as--
            (1) improved police academies and entry level training on 
        crime investigations;
            (2) courts management and prosecutor capacity building;
            (3) witness and victim protection programs, including in 
        Guatemala in coordination with the United Nations International 
        Commission Against Impunity in Guatemala (CICIG);
            (4) programs to enhance transparency in the procedures to 
        designate and remove personnel in the recipient country's 
        judicial system;
            (5) prosecutor and judge protection programs, including in 
        Guatemala and in coordination with the CICIG;
            (6) short-term assignment of United States Government 
        personnel to the CICIG to provide technical assistance for 
        criminal investigations, specifically but not limited to 
        investigations involving money laundering so long as this 
        assignment does not negatively impact United States domestic 
        operations;
            (7) regional juvenile justice reform;
            (8) prison management;
            (9) programs to rehabilitate gang members released from 
        prison, including job training; and
            (10) community policing, including human rights and use of 
        force training for community policing projects.

SEC. 223. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--To carry out this title, there are authorized to 
be appropriated to the President $40,000,000 for fiscal year 2008, 
$50,000,000 for fiscal year 2009, and $95,000,000 for fiscal year 2010.
    (b) Availability.--Amounts appropriated pursuant to the 
authorization of appropriations under subsection (a) are--
            (1) authorized to remain available until expended; and
            (2) in addition to funds otherwise available for such 
        purposes, including funds available under chapters 2 and 8 of 
        part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2166 
        and 2291 et seq.).

                  TITLE III--ADMINISTRATIVE PROVISIONS

SEC. 301. CONDITIONS ON PROVISION OF ASSISTANCE.

    (a) In General.--The President may not provide assistance under 
title I or II to a foreign country for a fiscal year until the end of a 
15-day period beginning on the date on which the President transmits to 
the appropriate congressional committees a determination that the 
requirements described in subsection (b) have been met with respect to 
the government of such foreign country for such fiscal year.
    (b) Required Determination.--The requirements referred to in 
subsection (a) are the following:
            (1) The provision of assistance will not adversely affect 
        the human rights situation in the foreign country.
            (2) Vetting procedures are in place to ensure that members 
        and units of the armed forces and law enforcement agencies of 
        the foreign country that may receive assistance under title I 
        or II have not been involved in human rights violations.
            (3) The civilian authority in the foreign country is 
        investigating and prosecuting any member of any government 
        agency or entity receiving assistance under title I or II who 
        has been credibly alleged to have committed human rights 
        violations on or after the date of the enactment of this Act.
            (4) Equipment and material provided as support is being 
        used only by officials and employees of the government of the 
        foreign country who have been approved by such government to 
        perform counternarcotics activities, including on the basis of 
        the background investigations by such government.
            (5) The government of the foreign country has cooperated 
        with the Secretary of State to ensure that--
                    (A) the equipment and material provided as support 
                will be used only by the officials and employees 
                referred to in paragraph (4);
                    (B) none of the equipment or material will be 
                transferred (by sale, gift, or otherwise) to any person 
                or entity not authorized by the United States to 
                receive the equipment or material; and
                    (C) the equipment and material will, to the extent 
                possible, be used for the purposes intended by the 
                United States Government and will be utilized by those 
                agencies for which such assistance is intended.
            (6) The government of the foreign country has implemented, 
        in consultation with the Secretary of State, a system that will 
        provide an accounting and inventory of the equipment and 
        material provided as support.
            (7) The government of the foreign country will, along with 
        United States personnel, conduct periodic observation and 
        review of the use of the equipment and material provided as 
        support under terms and conditions similar to the terms and 
        conditions imposed with respect to such observation and review 
        under section 505(a)(3) of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2314(a)(3)).
            (8) To the extent the foreign country has received 
        equipment in the past, it has utilized the equipment properly 
        and in a manner that warrants additional provision of equipment 
        or assistance.

SEC. 302. LIMITATIONS ON PROVISION OF ASSISTANCE.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) activities undertaken under titles I and II of this Act 
        should be performed wherever possible by official employees, 
        personnel, or officers of the federal, state, or local 
        government of the recipient foreign country; and
            (2) the United States should limit, to the maximum extent 
        possible, the number of United States civilians and foreign 
        nationals retained as contractors in a recipient country.
    (b) Limitations.--Except as provided in subsection (c)--
            (1) none of the funds made available to carry out title I 
        may be available for the employment of any United States 
        individual civilian retained as a contractor in Mexico or any 
        foreign national retained as a contractor if that employment 
        would cause the total number of individual civilian contractors 
        employed in Mexico in support of the Merida Initiative who are 
        funded by United States funds to exceed 50;
            (2) none of the funds made available to carry out title II 
        may be available for the employment of any United States 
        individual civilian retained as a contractor in a country of 
        Central America or any foreign national retained as a 
        contractor if that employment would cause the total number of 
        individual civilian contractors employed in all countries of 
        Central America in support of the Merida Initiative who are 
        funded by United States funds to exceed 100; and
            (3) none of the funds made available under this Act shall 
        be made available for budget support or cash payments.
    (c) Exception.--The limitations contained in subsection (b) shall 
not apply if the President determines that it is in the national 
interest of the United States that such limitations shall not apply and 
transmits to the appropriate congressional committees a notification 
thereof.

SEC. 303. LIMITATION ON MONITORING.

    Beginning on October 1, 2009, no surveillance-related equipment may 
be transferred under this Act to any entity of Mexico or a country of 
Central America unless the President determines that the recipient 
country has cooperated with the United States to ensure that such 
equipment will be used principally for the purposes for which it is 
provided.

SEC. 304. EXEMPTION FROM PROHIBITION ON ASSISTANCE FOR LAW ENFORCEMENT 
                    FORCES.

    Notwithstanding section 660 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2420; relating to the prohibition on assistance to foreign 
law enforcement forces), the President may provide assistance under 
title I or II if, at least 15 days before providing the assistance, the 
President notifies the Committee on Foreign Affairs of the House of 
Representatives and the Committee on Foreign Relations of the Senate, 
in accordance with the procedures applicable to reprogramming 
notifications pursuant to section 634A of the Foreign Assistance Act 
(22 U.S.C. 2394-1), that (1) it is in the national interest to provide 
such assistance, and (2) the recipient country is making significant 
progress to eliminating any human rights violations.

SEC. 305. RELATIONSHIP TO OTHER AUTHORITY.

    (a) Assistance Under Title I.--The authority to provide assistance 
under title I is in addition to any other authority to provide 
assistance for Mexico.
    (b) Assistance Under Title II.--The authority to provide assistance 
under title I is in addition to any other authority to provide 
assistance for the countries of Central America.

SEC. 306. RULE OF CONSTRUCTION.

    Nothing in title I or II shall be construed to alter, modify, or 
otherwise affect the provisions of the Arms Export Control Act (22 
U.S.C. 2751 et seq.) unless otherwise specified in this Act.

           TITLE IV--SUPPORT ACTIVITIES IN THE UNITED STATES

SEC. 401. REPORT ON REDUCTION OF DRUG DEMAND IN THE UNITED STATES.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) supply-side drug reduction strategies when executed 
        alone are not an effective way to fight the phenomenon of 
        illegal narcotics;
            (2) the Government of Mexico has identified reduction of 
        United States drug demand as among the most important 
        contributions the United States can make to a joint strategy to 
        combat illicit narcotics trafficking; and
            (3) the United States pledged in the United States-Mexico 
        October 2007 Joint Statement on the Merida Initiative, to 
        ``intensify its efforts to address all aspects of drug 
        trafficking (including demand related portions)'' here in the 
        United States.
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the President shall transmit to the appropriate 
congressional committees a report on the measures taken to intensify 
United States efforts to address United States demand-related aspects 
of the drug-trafficking phenomenon in accordance with the Joint 
Statement on the Merida Initiative announced by the United States and 
Mexico on October 22, 2007.

SEC. 402. REDUCTION OF SOUTHBOUND FLOW OF ILLEGAL WEAPONS.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) much of the increased violence in Mexico is perpetrated 
        using firearms and ammunition smuggled illegally from the 
        United States into Mexico;
            (2) the Bureau of Alcohol, Tobacco, Firearms and Explosives 
        (ATF) has told Congress of an ``iron river of guns'' with 
        thousands of weapons per week illegally crossing into Mexico 
        from the United States;
            (3) more than 90 percent of the guns confiscated yearly in 
        Mexico originate in the United States and approximately 40 
        percent of the total trafficked weapons are linked to drug 
        trafficking organizations;
            (4) along the 2,000 mile border from Brownsville, Texas, to 
        San Diego, California, there are 6,700 licensed gun sellers, 
        but only 100 Bureau of Alcohol, Tobacco, Firearms, and 
        Explosives (ATF) special agents to investigate allegations of 
        weapons trafficking and only 35 inspectors to ensure compliance 
        with United States laws;
            (5) on January 16, 2008, ATF announced that it will add 25 
        special agents and 15 inspectors to their Project Gunrunner 
        along the Southwest Border. And, the ATF budget request for 
        fiscal year 2009 includes funding for another 12 inspectors; 
        and
            (6) an effective strategy to combat these illegal arms 
        flows is a critical part of a United States contribution to a 
        jointly executed anti-narcotics strategy with Mexico.
    (b) Project Gunrunner Initiative.--
            (1) In general.--The Attorney General shall dedicate and 
        expand the resources provided for the Project Gunrunner 
        initiative (hereafter in this subsection referred to as the 
        ``initiative'') of the Bureau of Alcohol, Tobacco, Firearms, 
        and Explosives to identify, investigate, and prosecute 
        individuals involved in the trafficking of firearms across the 
        United States-Mexico border.
            (2) Activities.--In carrying out this subsection, the 
        Attorney General shall--
                    (A) assign additional agents of the Bureau of 
                Alcohol, Tobacco, Firearms, and Explosives to the area 
                of the United States adjacent to the United States-
                Mexico border to support the expansion of the 
                initiative;
                    (B) establish not fewer than 1 initiative team in 
                each State along the United States-Mexico border; and
                    (C) coordinate with the heads of other relevant 
                federal law enforcement agencies and State and local 
                law enforcement agencies to address firearms 
                trafficking in a comprehensive manner.
            (3) Additional staff.--The Attorney General may hire 
        additional persons to be Bureau of Alcohol, Tobacco, Firearms, 
        and Explosives agents for, and may use such other resources as 
        may be necessary to adequately support, the initiative.
            (4) Authorization of appropriations.--To carry out this 
        subsection, there are authorized to be appropriated to the 
        Attorney General $15,000,000 for each of the fiscal years 2008 
        through 2010.
    (c) Enhanced International Cooperation.--
            (1) In general.--The Attorney General, in cooperation with 
        the Secretary of State, shall--
                    (A) assign agents of the Bureau of Alcohol, 
                Tobacco, Firearms, and Explosives to the United States 
                mission in Mexico, specifically in areas adjacent to 
                the United States-Mexico border, to work with Mexican 
                law enforcement agencies in conducting investigations 
                relating to firearms trafficking and other criminal 
                enterprises;
                    (B) provide the equipment and technological 
                resources necessary to support investigations and to 
                trace firearms recovered in Mexico; and
                    (C) support the training of vetted Mexican law 
                enforcement officers in serial number restoration 
                techniques and canine explosive detection.
            (2) Authorization of appropriations.--To carry out this 
        subsection, there are authorized to be appropriated to the 
        Attorney General $9,500,000 for each of the fiscal years 2008 
        through 2010.

SEC. 403. REDUCTION OF SOUTHBOUND FLOW OF ILLEGAL PRECURSOR CHEMICALS 
                    AND BULK-CASH TRANSFERS.

    It is the sense of Congress that--
            (1) a significant quantity of precursor chemicals used in 
        the production of illegal narcotics flows south from the United 
        States to Mexico;
            (2) the Government of Mexico has identified reduction of 
        southbound flows from the United States of precursor chemicals 
        and bulk-cash transfers as a critical component of its anti-
        narcotics strategy; and
            (3) an effective strategy to combat these illegal flows is 
        a critical part of a United States contribution to a jointly 
        executed anti-narcotics strategy with Mexico.

SEC. 404. REPORT.

    Not later than 180 days after the date of the enactment of this 
Act, the President shall transmit to the appropriate congressional 
committees a report on the measures taken to combat the southbound flow 
of illegal precursor chemicals and bulk cash transfers into Mexico.

                   TITLE V--MISCELLANEOUS PROVISIONS

SEC. 501. COORDINATOR OF UNITED STATES GOVERNMENT ACTIVITIES TO 
                    IMPLEMENT THE MERIDA INITIATIVE.

    (a) Declaration of Policy.--Congress declares that the Merida 
Initiative is a Department of State-led initiative which combines 
programs of numerous United States Government departments and agencies 
and therefore requires a single coordinator to manage and track all 
Merida-related efforts government-wide to ensure accountability and 
avoid duplication.
    (b) Designation of High-Level Coordinator.--
            (1) In general.--The President shall designate, within the 
        Department of State, a Coordinator of United States Government 
        Activities to Implement the Merida Initiative (hereafter in 
        this section referred to as the ``Coordinator'') who shall be 
        responsible for--
                    (A) designing an overall strategy to advance the 
                purposes of this Act;
                    (B) ensuring program and policy coordination among 
                agencies of the United States Government in carrying 
                out the policies set forth in this Act;
                    (C) ensuring that efforts of the United States 
                Government under this Act are in full consonance with 
                the efforts of the Government of Mexico and the 
                governments of Central America in implementing the 
                Merida Initiative;
                    (D) tracking all United States Government 
                assistance which fulfills the goals of the Merida 
                Initiative or is closely related to the goals of the 
                Merida Initiative, including information required under 
                section 620J of the Foreign Assistance Act of 1961 (22 
                U.S.C. 2378d) with respect to Mexico and the countries 
                of Central America;
                    (E) coordinating among agencies of the United 
                States Government on all United States assistance to 
                Mexico and the countries of Central America, including 
                assistance from other relevant government agencies, 
                which fulfills the goals of the Merida Initiative to 
                avoid duplication or conflict among programs; and
                    (F) coordinating with federal, State, and local law 
                enforcement authorities in the United States that are 
                responsible for law enforcement activities along the 
                United States-Mexico border.
            (2) Rank and status of the coordinator.--The Coordinator 
        shall have the rank and status of ambassador.

SEC. 502. METRICS AND OVERSIGHT MECHANISMS.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) to successfully support building the capacity of 
        recipient countries' civilian security institutions, enhance 
        the rule of law in recipient countries, and ensure the 
        protection of human rights, the President should establish 
        metrics and oversight mechanisms to track the effectiveness of 
        activities undertaken pursuant to this Act;
            (2) long-term solutions to Mexico and Central America's 
        security problems depend on strengthening and holding 
        accountable civilian institutions;
            (3) it is difficult to assess the impact of United States 
        assistance towards these goals absent specific oversight and 
        monitoring mechanisms; and
            (4) the President, in developing metrics, should consult 
        with Congress as well as the Government of Mexico and the 
        Central American Integration System (SICA).
    (b) Requirement.--The President shall develop metrics to identify, 
track, and manage the progress of activities authorized pursuant to 
this Act and use these metrics to determine the allocation of resources 
for counternarcotics- and organized crime-related efforts.
    (c) Initial Report.--
            (1) In general.--Not later than 60 days after the date of 
        the enactment of this Act, the President shall transmit to the 
        appropriate congressional committees a report that specifies 
        metrics of achievement for each activity to be undertaken under 
        this Act.
            (2) Contents of report.--The report shall be divided into 
        two sections, the first addressing those activities undertaken 
        pursuant to subtitle A of title I and subtitle A of title II, 
        and the second addressing those activities undertaken pursuant 
        to subtitle B of title I and subtitle B of title II. Metrics 
        may include the following:
                    (A) Indicators on long-term effectiveness of the 
                equipment and training provided to Mexican and Central 
                American security institutions.
                    (B) Statistics of counter narcotics-related 
                arrests.
                    (C) Number of interdictions of drug shipments.
                    (D) Specific progress on police reform.
                    (E) Counternarcotics-related arrests.
                    (F) Quantification of reduction of supply of 
                illicit narcotics into the United States.
                    (G) Cross-utilization, if any, of equipment among 
                the armed forces and law enforcement entities.
                    (H) Increased school attendance rates.
                    (I) Attendance in primary prevention programs
                    (J) The level of cooperation among United States, 
                Mexican, and Central American law enforcement agencies.

SEC. 503. REPORT.

    (a) In General.--The President shall transmit to the appropriate 
congressional committees a report concerning the programs and 
activities carried out under this Act during the preceding fiscal year. 
The first report shall be transmitted not later than 180 days after the 
date of the enactment of this Act and subsequent reports shall be 
transmitted not later than October 31 of each year thereafter.
    (b) Matters to Be Included.--The report required under subsection 
(a) shall include the following:
            (1) Metrics.--A general description of the progress in 
        stabilizing the security situation in each recipient country as 
        well as combating trafficking and building its capacity based 
        on the metrics developed under section 502.
            (2) Coordination.--Efforts of the United States Government 
        to coordinate its activities pursuant to section 501, 
        including--
                    (A) a description of all counternarcotics and 
                organized crime assistance provided to recipient 
                countries in the previous fiscal year;
                    (B) an assessment of how such assistance was 
                coordinated; and
                    (C) recommendations for improving coordination.
            (3) Transfer of equipment.--A description of the transfer 
        of equipment, including--
                    (A) a description of the progress of each recipient 
                country toward the transfer of equipment, if any, from 
                its armed forces to law enforcement agencies;
                    (B) a list of organizations that have used the air 
                assets provided to the government of each recipient 
                country, and, to the extent possible, a detailed 
                description of those agencies that have utilized the 
                air assets, including a breakdown of the percentage of 
                use by each agency; and
                    (C) a description of training of law enforcement 
                agencies to operate equipment, including air assets.
            (4) Human rights.--Consistent with sections 116(d) and 
        502B(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 
        2151n(d) and 2304(b)) and section 504 of the Trade Act of 1974 
        (19 U.S.C. 2464), an assessment of the human rights impact of 
        the equipment and training provided under this Act, including--
                    (A) a list of accusations of serious human rights 
                abuses committed by the armed forces and law 
                enforcement agencies of recipient countries from the 
                date of enactment of this Act; and
                    (B) a description of efforts by the government of 
                recipient countries to investigate and prosecute 
                allegations of abuses of human rights committed by any 
                agency of the recipient countries.
            (5) Effectiveness of equipment.--An assessment on the long-
        term effectiveness of the equipment and maintenance packages 
        and training provided to each recipient country's security 
        institutions.
            (6) Mexico public security strategy.--A description of 
        Mexico's development of a public security strategy, including--
                    (A) an update on the effectiveness of the Mexican 
                federal Registry of Police Personnel to vet police 
                recruiting at the National, state, and municipal levels 
                to prevent rehiring from one force to the next after 
                dismissal for corruption and other reasons; and
                    (B) an assessment of how the Merida Initiative 
                complements and supports the Mexican Government's own 
                public security strategy.
            (7) Flow of illegal arms.--A description of efforts to 
        reduce the southbound flow of illegal arms.
            (8) Use of contractors.--A detailed description of 
        contracts awarded to private companies to carry out provisions 
        of this Act, including--
                    (A) a description of the number of United States 
                and foreign national civilian contractors awarded 
                contracts;
                    (B) a list of the total dollar value of the 
                contracts; and
                    (C) the purposes of the contracts.
            (9) Central american regional security plan.--A description 
        of implementation by the countries of Central America of the 
        Central American Regional Security Plan, including an 
        assessment of how the Merida Initiative complements and 
        supports the Central American Regional Security Plan.
            (10) Phase out of law enforcement activities.--A 
        description of the progress of phasing out law enforcement 
        activities of the armed forces of each recipient country.
            (11) Displacement and diversion of drug trafficking 
        patterns.--A description of any displacement effect and 
        diversion of drug trafficking patterns from Mexico and the 
        countries of Central America to other routes, including through 
        potentially vulnerable Caribbean countries.
            (12) Impact on border violence and security.--A description 
        of the impact that activities authorized under this Act have 
        had on violence against United States and Mexican border 
        personnel and the extent to which these activities have 
        increased the protection and security of the United States-
        Mexico border.

SEC. 504. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the United States Government requires an effective 
        public diplomacy strategy to explain the purposes of the Merida 
        Initiative; and
            (2) to the extent practicable, the Secretary of State, in 
        coordination with other relevant heads of agencies, shall 
        design and implement a public diplomacy campaign regionally 
        regarding the Merida Initiative.

SEC. 505. SUNSET.

    The authority of this Act shall expire after September 30, 2010.

                                Summary

    H.R. 6028, the Merida Initiative to Combat Illicit 
Narcotics and Reduce Organized Crime Authorization Act of 2008 
(the ``Act''), provides nearly $1.6 billion over 3 years for 
the purposes of stopping illicit narcotics-related violence and 
crime in Mexico and Central America (as defined by this Act); 
modernizing the law enforcement agencies of recipient 
countries; and enhancing institution-building and rule of law 
in recipient countries. The Act concentrates considerable 
funding in the fragile Central American region. It contains 
significant human rights safeguards as well as end-use 
monitoring provisions for the equipment and training provided. 
It does not provide cash payments or budget support of any 
kind. It calls on the President to devise metrics up front to 
measure the success of the Act, and subsequently to regularly 
report on them to the Congress. It bolsters the U.S.'s efforts 
in stemming the illegal flow of arms going south by 
significantly expanding the ``Project Gunrunner'' at the Bureau 
of Alcohol, Tobacco, Firearms and Explosives (ATF). Finally, it 
requires that the President, within the Department of State, 
designate a coordinator for the Act in order to harmonize both 
responsibility and accountability for its wide-ranging 
programs.

               Background and Purpose for the Legislation

    This bill authorizes assistance to Mexico and the countries 
of Central America in the areas of: counter-narcotics; the 
fight against organized crime and youth gang violence; law 
enforcement modernization; and institution-building and rule of 
law support. It provides, as well, a framework for delivery and 
strict accountability of that assistance.
    The drug crisis facing the United States remains a top 
national security threat, with 90% of illegal drugs that enter 
the United States transiting the Mexico-Central America 
corridor. Drug cartels that operate in the United States, 
Mexico, and Central America are dangerously undermining the 
security environment for our neighbors to the south, and the 
spillover into our territory is palpable and real. In 2007, 
President George W. Bush and Mexican President Felipe Calderon 
met in the city of Merida, Mexico, and President Bush later 
sent to the Congress a proposal to confront this scourge. That 
proposal is largely reflected in this legislation.
    Our neighbors to the south have stepped up their fight 
against organized drug trafficking organizations, and have paid 
a high price for it. In Mexico alone, drug cartels have been 
blamed for 6,000 deaths in the last 2\1/2\ years of this 
battle. On Thursday May 8, 2008, the Chief of Mexico's Federal 
police was shot nine times--the tenth assassination of a 
Mexican Federal police official in the past 2 months. This 
legislation represents U.S. implementation of a partnership 
with Mexico and Central America to face the immediate security 
threat of drug cartels and youth gang violence, help build the 
capacity of our neighbors' law enforcement agencies, and 
enhance the rule of law in the region.
    The Act recognizes that responsibility for the drug problem 
is shared, and that we have arrived at a critical moment of 
opportunity to execute such a comprehensive, joint action plan. 
It reflects, as well, the need to reduce violence along the 
U.S.-Mexico border, and control illegal activity going south as 
well as north, especially the so-called ``iron-river'' of arms 
illegally flowing south. Specifically, with respect to Mexico, 
it acknowledges that the armed forces have been called upon in 
the short-term to stabilize the security situation, but that 
this problem falls into the realm of law enforcement, and our 
focus should be to help build that capacity. Finally, the 
entire Act is underpinned by the belief that the long-term 
solution to overcoming illicit drug trafficking and organized 
crime lies in strengthening the rule of law and those 
institutions charged with upholding it.
    In broad strokes, the purpose of the legislation is to:

         LEnhance the ability of the government of the 
        recipient countries to control the violence and 
        corruption associated with illicit narcotics 
        production, trafficking, drug trafficking organizations 
        and organized crime--in particular by working with law 
        enforcement agencies to help build the capacity to 
        control illicit narcotics production, trafficking, drug 
        trafficking organizations and organized crime;

         LReduce violence along the U.S.-Mexico border 
        and control illegal activity going south as well as 
        north;

         LStrengthen the bilateral ties of the United 
        States with the recipient countries by offering 
        concrete assistance in this area of great mutual 
        concern;

         LStrengthen respect for internationally-
        recognized human rights and the rule of law as part of 
        efforts to stabilize the security environment relating 
        to illicit narcotics production and trafficking and 
        organized crime; and

         LRespond to the direct requests of the 
        Government of Mexico that the U.S. reduce the demand 
        for drugs in the United States; stem the flow of 
        illegal arms into Mexico from the U.S.; stem the flow 
        of illegal bulk-cash transfers into Mexico from the 
        U.S.; and stem the flow of illegal precursor chemicals 
        into Mexico from the U.S.

    Generally, the purposes of the legislation apply in equal 
measure to Mexico and the countries of Central America. The 
latter countries, however, have somewhat different requirements 
than Mexico, and the Act recognizes and targets those needs.
    The legislation reflects that it is in the interest of the 
United States to support a long-term commitment to assist 
Central America in improving security, particularly through the 
use of the police forces rather than the armed forces. Ninety 
percent of the cocaine that flows from the Andean region to the 
United States travels through the Central American corridor. A 
commitment to Central America should include activities to 
combat drug trafficking, invest in prevention programs, 
increase intelligence sharing, improve regional security 
coordination and border and customs capabilities, 
professionalize police, justice and other government officials, 
and fund programs to reintegrate deportees from the United 
States. As such, the Act provides considerable funding for 
Central America.
    Crime and violence in Central America has increased in 
recent years. In 2005, the estimated murder rate per 100,000 
people was roughly 56 in El Salvador, 41 in Honduras and 38 in 
Guatemala. Youth gang violence in particular has been one of 
the major factors contributing to increased violence in Central 
America, with the U.S. Southern Command estimating that there 
are 70,000 gang members in Central America. An important 
element of the gang phenomenon in Central America is that some 
youth gangs operating there are transnational and negatively 
impact both Central America and the United States. Youth gang 
violence cannot be curbed only through enforcement, but must 
also include a substantial investment in prevention, 
rehabilitation and reintegration. Deportees sent from the 
United States back to Central America, while not a central 
cause of crime and violence, can contribute to crime and 
violence in the sub-region. For each fiscal year, the Act sets 
aside $15 million to address the youth gang issue.
    Weak justice systems in Central America have contributed to 
a high level of impunity in this sub-region. The United Nations 
International Commission against Impunity in Guatemala (CICIG) 
was recently created to begin to address impunity related to 
illegally armed groups in Guatemala. This Act provides 
operational and technical assistance to the CICIG, as long as 
it does not negatively impact U.S. domestic operations. The Act 
also provides support for the creation of witness and victim 
protection programs in Central America.
    Finally, the spread of illicit drugs through this region 
and into the United States and the violence that accompanies it 
in the region cannot be halted without a comprehensive 
interdiction and security strategy planned and executed jointly 
with our southern neighbors. This legislation provides and 
authorizes that framework.

                                Hearings

    The Committee held four hearings directly related to the 
subject matter of the bill. A Full Committee hearing took place 
on November 14, 2007, and focused on the counternarcotics 
initiative discussed in Merida the previous month. Witnesses 
included the Honorable Thomas A. Shannon, Jr., Assistant 
Secretary, Bureau of Western Hemisphere Affairs, Department of 
State, and the Honorable David T. Johnson, Assistant Secretary, 
Bureau of International Narcotics and Law Enforcement Affairs, 
Department of State.
    The Subcommittee on the Western Hemisphere conducted a 
hearing on October 25, 2007, which focused both on the proposed 
Merida Initiative and a Government Accountability Office (GAO) 
report on U.S.--Mexico joint counternarcotics efforts. 
Witnesses included Mr. Jess T. Ford, Director, International 
Affairs and Trade, Government Accountability Office; the 
Honorable James R. Jones, Co-Chairman and CEO of Manatt Jones 
Global Strategies, Dr. John Bailey, Georgetown University 
Center for Latin American Studies; Ms. Joy Olson, Executive 
Director of the Washington Office on Latin America; and Mr. 
Armand Peschard-Sverdrup, Senior Associate, Center for 
Strategic and International Studies.
    A second Subcommittee on the Western Hemisphere hearing 
took place on February 7, 2008, and focused on U.S. domestic 
obligations under the Merida Initiative, particularly the U.S. 
commitment in the October 22, 2007 U.S.-Mexico Joint Statement 
to ``intensify efforts to address all aspects of drug 
trafficking (including demand-related portions) and continue to 
combat trafficking of weapons and bulk currency to Mexico.'' 
Witnesses included the Honorable Scott Burns, Deputy Director, 
Office of National Drug Control Policy; the Honorable Thomas A. 
Shannon, Jr., Assistant Secretary, Bureau of Western Hemisphere 
Affairs, Department of State; the Honorable Marisa R. Lino, 
Assistant Secretary for International Security Affairs, 
Department of Homeland Security; the Honorable William Hoover, 
Assistant Director for Field Operations, Bureau of Alcohol, 
Tobacco, Firearms and Explosives; Mr. Anthony Placido, Chief of 
Intelligence, Drug Enforcement Agency; and Mr. Kenneth W. 
Kaiser, Assistant Director, Federal Bureau of Investigation.
    The Subcommittee on the Western Hemisphere conducted a 
third hearing on May 8, 2008, that focused on the Central 
America portion of the Merida Initiative. Witnesses included 
the Honorable Thomas A. Shannon, Jr., Assistant Secretary, 
Bureau of Western Hemisphere Affairs, Department of State; 
Geoff Thale, Program Director of the Washington Office on Latin 
America; Mr. Harold Sibaja, Regional Representative, Creative 
Associates International, Inc.; and Ms. Beatriz C. Casals, 
President, Casals and Associates, Inc.

                        Committee Consideration

    On May 14, 2008, the Committee considered H.R. 6028 during 
a Full Committee markup, and ordered the bill favorably 
reported, as amended, by voice vote, a quorum being present.

                         Votes of the Committee

    There was one vote during consideration of H.R. 6028:

Amendment offered by Mr. Tancredo--to Section 301(a) and 
        Section 301(b)--adds to conditions on provision of 
        assistance--defeated by a rollcall vote of 10-23.

Voting yes: Giffords, Burton, Rohrabacher, Royce, Tancredo, 
        Wilson, Barrett, McCaul, Poe and Bilirakis
Voting no: Berman, Ackerman, Faleomavaega, Payne, Sherman, 
        Wexler, Engel, Meeks, Watson, Smith (WA), Carnahan, 
        Woolsey, Jackson Lee, Hinojosa, Crowley, Wu, Miller, 
        Sanchez, Sires, Klein, Lee, Ros-Lehtinen and Fortuno

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee reports that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

               New Budget Authority and Tax Expenditures

    In compliance with Clause 3(c) (2) of House Rule XIII, the 
Committee adopts as its own the estimate of new budget 
authority, entitlement authority, or tax expenditures or 
revenues contained in the cost estimate prepared by the 
Director of the Congressional Budget Office, pursuant to 
section 402 of the Congressional Budget Act of 1974.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, H.R.6028, the following estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 21, 2008.
Hon. Howard L. Berman, Chairman,
Committee on Foreign Affairs,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 6028, the Merida 
Initiative to Combat Illicit Narcotics and Reduce Organized 
Crime Authorization Act of 2008.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sunita 
D'Monte, who can be reached at 226-2840.
            Sincerely,
                                           Peter R. Orszag.
Enclosure

cc:
        Honorable Ileana Ros-Lehtinen
        Ranking Member
H.R. 6028--Merida Initiative to Combat Illicit Narcotics and Reduce 
        Organized Crime Authorization Act of 2008.

                                SUMMARY

    H.R. 6028 would authorize assistance for Mexico and Central 
American countries to control drug trafficking and organized 
crime and direct the Department of Justice to expand its 
efforts to prevent trafficking of firearms across the U.S.-
Mexico border. It would authorize the appropriation of $1.6 
billion over the 2008-2010 period for those purposes. CBO 
estimates that implementing H.R. 6028 would cost $1.5 billion 
over the 2008-2013 period, assuming appropriation of the 
authorized amounts. Enacting the bill would not affect direct 
spending or revenues.
    H.R. 6028 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.

                ESTIMATED COST TO THE FEDERAL GOVERNMENT

    The estimated budgetary impact of H.R. 6028 is shown in the 
following table. The costs of this legislation fall within 
budget functions 150 (international affairs) and 750 
(administration of justice).

                           BASIS OF ESTIMATE

    For this estimate, CBO assumes that H.R. 6028 will be 
enacted in June 2008, that the specified amounts will be 
appropriated each year, and that outlays will follow historical 
spending patterns for similar programs. (Funding for 2008 would 
have to be provided in a supplemental appropriations act; most 
of the outlays from any such 2008 funding would occur in later 
years.)

                                     By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
                                                   2008     2009     2010     2011     2012     2013   2008-2013
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Assistance for Mexico                                470      490      150        0        0        0     1,110
  Authorization Level
  Estimated Outlays                                   58      371      381      180       49       11     1,050

Assistance for Central American Countries            100      130      175        0        0        0       405
  Authorization Level
  Estimated Outlays                                   10       85      117      107       38       14       371

Department of Justice Programs                        25       25       25        0        0        0        74
  Authorization Level
  Estimated Outlays                                    2       37       30        5        0        0        74

  Total Changes                                      595      645      350        0        0        0     1,589
    Authorization Level
    Estimated Outlays                                 70      493      528      292       87       25     1,495
----------------------------------------------------------------------------------------------------------------
Note: Numbers may not sum to totals because of rounding.

Assistance for Mexico
    Title I would authorize the State Department to provide 
assistance to train and equip the Mexican armed forces and law 
enforcement agencies to control drug trafficking and organized 
crime, and to strengthen that nation's judicial system. The 
bill would authorize the appropriation of $1.1 billion for 
Mexico over the 2008-2010 period. CBO estimates that 
implementing the provisions of title I would cost about $1 
billion over the 2008-2013 period, assuming appropriation of 
the specified amounts.
Assistance for Central American Countries
    Title II would authorize the appropriation of $405 million 
over the 2008-2010 period to provide assistance to several 
countries in Central America: Belize, Costa Rica, the Dominican 
Republic, El Salvador, Guatemala, Haiti, Honduras, Nicaragua, 
and Panama. Those funds would be used for purposes similar to 
those specified for Mexico in title I of the bill. CBO 
estimates that implementing the provisions of title II would 
cost about $370 million over the 2008-2013 period, assuming 
appropriation of the specified amounts.
Department of Justice Programs
    Title IV would authorize the appropriation of $24.5 million 
for each of the fiscal years 2008 through 2010 for the 
Department of Justice to combat the trafficking of firearms 
across the U.S.-Mexico border. CBO estimates that implementing 
those provisions would cost $74 million over the 2008-2013 
period, assuming appropriation of the specified amounts.
Other Provisions
    Section 501 would require the Secretary of State to 
designate a coordinator to oversee the programs authorized 
under H.R. 6028. In addition, the bill would require several 
reports on the implementation of the bill's provisions. CBO 
estimates that implementing those requirements would cost less 
than $500,000 over the 2009-2013 period, assuming the 
availability of appropriated funds.

              INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

    H.R. 6028 contains no intergovernmental or private-sector 
mandates as defined in UMRA and would impose no costs on state, 
local, or tribal governments.

                         ESTIMATE PREPARED BY:

Federal Costs:
  Department of Justice Programs--Mark Grabowicz (226-2860)
  Other Federal Costs--Sunita D'Monte (226-2840)
Impact on State, Local, and Tribal Governments: Neil Hood (225-
        3220)
Impact on the Private Sector: MarDestinee Perez (226-2940)

                         ESTIMATE APPROVED BY:

Peter H. Fontaine
Assistant Director for Budget Analysis

                    Performance Goals and Objectives

    The Act is intended to combat illicit narcotics trafficking 
and reduce organized crime in Mexico and Central America.

                   Constitutional Authority Statement

    Pursuant to clause 3(d) (1) of rule XIII of the Rules of 
the House of Representatives, the Committee finds the authority 
for this legislation in article I, section 8 of the 
Constitution.

                        New Advisory Committees

    H.R. 6028 does not establish or authorize any new advisory 
committees.

                    Congressional Accountability Act

    H.R. 6028 does not apply to the Legislative Branch.

                         Earmark Identification

    H.R. 6028 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9(d), 9(e), or 9(f) of rule XXI.

               Section-by-Section Analysis and Discussion

Section 1. Short Title.
    Section 1 cites the Act as the ``Merida Initiative to 
Combat Illicit Narcotics and Reduce Organized Crime 
Authorization Act of 2008.''
Section 2. Definitions.
    This section provides definitions for use in the Act. In 
subsection (2), the Committee includes Haiti and the Dominican 
Republic in the definition of ``Central America'' in 
recognition of the fact that the illicit narcotics-related 
violence afflicting mainland countries in Central America is 
also afflicting those countries used as transit routes for 
narcotics.

                     TITLE I--ASSISTANCE FOR MEXICO

    Title I authorizes assistance to Mexico to enhance the 
ability of the Government of Mexico to combat illicit narcotics 
production, trafficking, drug trafficking organizations, and 
organized crime, and to enhance the rule of law and strengthen 
civilian institutions. Title I also authorizes appropriations 
to carry out such assistance; limits the amounts of assistance 
that may be provided to the armed forces of Mexico; and limits 
such assistance where credible evidence exists regarding human 
rights violations.
Section 101. Findings.
    This section articulates findings that explain the genesis 
of the Act, including the finding that narcotics-related 
activity and expanding cross-border trafficking is dangerously 
undermining the security environment for the United States and 
its neighbors to the south; and calls attention to President 
Bush and Mexican President Calderon's joint statement 
announcing the Merida Initiative to fight illicit narcotics 
trafficking and criminal organizations throughout the Western 
Hemisphere. In the joint statement, Mexico pledged to more 
effectively fight drug-traffickers and organized crime, the 
United States pledged to intensify efforts to address drug 
trafficking, including domestic demand, weapons trafficking, 
and bulk currency smuggling, and both nations pledged to 
augment cooperation and coordination to fight criminal 
organizations on both sides of the border.
Section 102. Declarations of Policy.
    This section declares that: the Merida Initiative is a 
critical part of a growing partnership and strategy of 
cooperation between the United States and its southern 
neighbors to confront the illegal flow of narcotics as well as 
violence and organized crime that it has spawned; the United 
States needs to ensure the free flow of trade between the U.S. 
and Mexico while ensuring that the border is protected from 
illegal smuggling into the United States; the United States 
must undertake actions to complement those of Mexico, including 
efforts to stem the flow of precursor chemicals, bulk-cash, and 
the so-called ``iron-river'' of arms illegally flowing south, 
as well as demand-related aspects of the illicit drug 
phenomenon; and that the Mexican military is currently involved 
in counter-drug activities to stabilize the security situation, 
but that law enforcement agencies are ultimately responsible to 
address the narcotics-related problems.

          SUBTITLE A--LAW ENFORCEMENT AND SECURITY ASSISTANCE.

    This subtitle authorizes assistance to Mexico for law 
enforcement and security assistance purposes.
Section 111. Purposes of Assistance.
    This section establishes principles that should undergird 
the provision of assistance authorized under Subtitle A. These 
principles include that assistance should enhance the ability 
of the Government of Mexico, in cooperation with the United 
States, to control illicit narcotics production, trafficking, 
drug trafficking organizations (DTOs), and organized crime; 
help build the capacity of law enforcement forces of Mexico to 
control illicit narcotics production, trafficking, DTOs, and 
organized crime; and strengthen respect for internationally-
recognized human rights and the rule of law in efforts to 
stabilize the security environment relating to illicit 
narcotics production and trafficking. In establishing these 
principles, the Committee recognizes that although a solution 
to drug-fueled violence rests, among other things, in 
enhancement of the rule of law in Mexico and its neighbors, 
short-term security efforts are needed to stabilize the 
situation, including assistance to the armed forces of Mexico.
Section 112. Authorization of Assistance.
    This section authorizes the President to provide assistance 
for Mexico to carry out the purposes of section 111.
Section 113. Activities Supported.
    This section authorizes four general categories of 
assistance (counternarcotics and countertrafficking; port, 
airport, and related security; operational technology; and 
public security and law enforcement). Collectively, these 
categories constitute the bulk of security assistance to be 
provided to Mexico in order to enhance that country's military 
and law enforcement capacity to disrupt illicit narcotics 
trafficking and combat DTOs. The categories also generally 
track those categories of assistance proposed by the State 
Department. The Committee intends that the Department of State 
has latitude in determining how to best implement the Merida 
Initiative, although Congress expects the Administration to 
consult with Congress generally on implementation.
    Subsection 113 (a)(1) authorizes assistance to help build 
the capacity of law enforcement and security forces of Mexico 
to eradicate illicit narcotics trafficking and reduce 
trafficking-fueled violence. Such assistance may include the 
transfer of helicopters--on a loan or lease basis--to Mexico's 
armed forces, along with surveillance platform planes, and land 
and maritime interdiction equipment. This subsection also 
authorizes the training of security and law enforcement units 
solely for the purpose of planning and executing 
counternarcotics operations. The Committee recognizes that 
terrorists and other entities could exploit the trafficking 
routes used by narcotics smugglers. To the extent a terrorist 
threat exists, the Committee intends that other authorities, 
including Section 1206 authority of the National Defense 
Authorization Act for Fiscal Year 2006 (P.L. 109-363), be used 
for such purposes.
    Subsection 113(a)(2) authorizes assistance to help Mexico 
monitor and control the United States-Mexico border and the 
border between Mexico and Central America. The Committee is 
aware that improving the monitoring of the U.S.-Mexico border 
is a critical priority in the fight against smuggling, as is 
safeguarding ports of entry. The Committee intends that 
assistance authorized pursuant to this section address 
immediate needs to improve the monitoring of activity along the 
U.S.-Mexico border.
    The Administration's initial proposal to Congress 
referenced the transfer of Mobile Gamma Ray and Ion scanners 
for the armed forces of Mexico. The Committee believes that 
such assistance should be directed exclusively to civilian law 
enforcement agencies and its use governed by the latter, though 
the armed forces may be involved in the utilization of such 
assistance.
    Subsection 113(a)(3) authorizes assistance to help Mexican 
law enforcement agencies to investigate and collect 
intelligence against DTOs. Such assistance may include 
provision of hardware, operating systems, and communications 
networks for Mexican intelligence agencies. Provision of such 
assistance is premised on the notion that to fight drug 
organizations and reduce violence, Mexico must enhance the 
intelligence gathering capabilities of its security agencies.
    The Committee is well aware of instances in the past where 
the Government of Mexico has used its access to modern 
technology to observe the activities of its citizens. The 
Committee urges the Government of Mexico in the strongest 
possible terms to use such equipment solely for the limited 
purposes of enhancing control of the border and monitoring drug 
trafficking organizations, other criminal organizations and 
terrorist networks. The Committee strongly encourages the 
Administration to monitor how such intelligence-related 
technology provided to the Government of Mexico is being used 
and to take all necessary steps to ensure that the use of such 
equipment is consistent with internationally-recognized human 
rights standards.
    Subsection 113(a)(4) authorizes assistance to facilitate 
the modernization of law enforcement entities and prevent 
crime. Such assistance may include provision of helicopters, 
surveillance aircraft, and human rights training. Subsection 
113(b) makes clear the Committee's intent that funds made 
available to purchase helicopters pursuant to this Act are used 
to procure helicopters that are of a similar manufacture to 
those helicopters already in the possession of the Government 
of Mexico. The Committee believes that transfer of helicopters 
of a similar manufacture will greatly facilitate integration of 
such equipment into Mexico's existing fleet.
    As noted in Section 111 (Statement of Purpose), the 
Committee believes that military assistance should be phased 
out as Mexico's law enforcement agencies assume more of the 
fight against drug trafficking organizations. In that spirit, 
it is the Committee's intent that all equipment transferred to 
the armed forces of Mexico be cross-utilized by other relevant 
law enforcement agencies, and that the U.S. Department of State 
track how well the armed forces of Mexico are sharing such 
assets with law enforcement agencies.
    Finally, the Committee acknowledges the concerns expressed 
by human rights organizations regarding authorization for the 
transfer of helicopters to Mexico. The Committee believes that 
such assistance is critical at this juncture to combat the 
scourge of illicit narcotics but that the U.S. Government must 
maintain strict oversight over such air assets to ensure they 
are deployed for appropriate purposes.
Section 114. Limitation on Assistance.
    Section 114 incorporates the ``Leahy'' human rights 
limitation of Section 620J of the Foreign Assistance Act of 
1961, as amended (22 U.S.C. 2378d), into the bill and prohibits 
assistance to any unit of the armed forces of Mexico or law 
enforcement agency of Mexico if the Secretary of State 
determines that there is credible evidence that such unit has 
committed gross violations of human rights. The Committee 
expects that existing Leahy procedures will be used to ensure 
compliance with this provision, including the vetting of all 
units of security forces that will receive funding pursuant to 
this Act. The Committee expects that the State Department will 
ensure that members of a unit against whom credible evidence 
has been found, are not reassigned to other ``clean'' units 
that do not trigger vetting problems.
Section 115. Authorization of Appropriations.
    Subsection 115(a) provides an authorization totaling $780 
million over Fiscal Years 2008-2010.
    Subsection 115(b) limits the amount of funds that may be 
provided to the armed forces of Mexico over Fiscal Years 2008-
2010. This limitation reflects the Committee's belief that 
although the armed forces of Mexico may be necessary to 
stabilize the security situation in the short-term, law 
enforcement agencies must ultimately spearhead the fight 
against drug-related violence.

   SUBTITLE B--ASSISTANCE TO ENHANCE THE RULE OF LAW AND STRENGTHEN 
                         CIVILIAN INSTITUTIONS.

    This subtitle authorizes assistance to Mexico for the 
purposes of enhancing Mexico's judicial system, civilian 
institutions, and rule of law. It is intended to complement 
security assistance to Mexico authorized in Subtitle A.
Section 121. Sense of Congress.
    Section 121 reiterates the Committee's belief that the 
solution to drug-related violence ultimately rests in ``smart 
power'' programs to enhance the rule of law and fortify 
Mexico's civilian institutions.
Section 122. Authorization of Assistance.
    Section 122 authorizes the President to provide assistance 
for Mexico to carry out the activities described in section 
123.
Section 123. Activities Supported.
    Section 123 authorizes four general categories of 
assistance (institution building and rule of law; anti-
corruption, transparency, and human rights; prevention of 
individuals from participating in illicit narcotics-related 
activities; and development).
    Subsection 123(1) authorizes assistance for Mexico's 
efforts to expand the rule of law and build the capacity, 
transparency, and trust in government institutions. Such 
assistance includes funding to support the development of: a 
Clerk of Court system; prosecutor capacity building; technical 
assistance for prison management; and prison reform activities. 
Assistance also includes maintenance of data systems, including 
costs of 2 years of maintenance for transferred equipment, with 
the intent that the Government of Mexico will have sufficient 
time to incorporate such expenditures in its own budget.
    Subsection 123(2) authorizes assistance to help Mexican law 
enforcement and court institutions develop mechanisms to ensure 
due process.
    Subsection 123(3) authorizes assistance for prevention 
programs focused on at-risk youth.
    Subsection 123(4) authorizes assistance for development 
purposes. The Committee recognizes that joblessness fuels 
narcotics-related violence. The Committee believes that 
development will help stem violence in the long-term and is a 
critical component of a successful counternarcotics strategy.
Section 124. Authorization of Appropriations.
    This section authorizes $330 million over Fiscal Years 
2008-2010 to carry out the purposes of subtitle B. This figure 
constitutes a significant plus up of the Administration's 
proposal.

         TITLE II--ASSISTANCE FOR COUNTRIES OF CENTRAL AMERICA

    This title authorizes funds for assistance to Central 
America. It is intended to mirror many of the kinds of 
assistance provided to Mexico in Title I as well as address 
specific problems in Central America, such as youth gangs.
Section 201. Findings.
    This section includes various findings regarding Central 
America's particular problems with illicit narcotics-related 
violence, as well as the proliferation of transnational youth 
gangs and the sharp increase in murders in the sub region.
Section 202. Declarations of Policy.
    This section declares, among other things, that a long-term 
U.S. strategy to curb illicit narcotics trafficking must 
include Central America, and that the United States must seize 
the opportunity to work in partnership with Central America to 
address the growing issue of drug trafficking and related 
violence.

          SUBTITLE A--LAW ENFORCEMENT AND SECURITY ASSISTANCE.

    Subtitle A authorizes assistance for law enforcement and 
security forces of countries in Central America.
Section 211. Purposes of Assistance.
    This section establishes the basis upon which assistance 
should be provided to Central America. These purposes include 
combating youth gang violence. The Committee is aware of human 
rights abuses committed by the armed forces and police forces 
of several potential recipient countries. It is the Committee's 
intention that assistance provided pursuant to this Act 
strengthens respect for internationally-recognized human rights 
and the rule of law in recipient countries.
Section 212. Authorization of Assistance.
    Section 212 authorizes the President to provide assistance 
for the countries of Central America to carry out the purposes 
of section 211.
Section 213. Activities Supported.
    Section 213 enumerates the activities authorized under the 
bill, including: counternarcotics, countertrafficking, and 
related security; and public security and law enforcement.
Section 214. Limitation on Assistance.
    Section 214 incorporates the ``Leahy'' human rights 
limitation into the Central America subtitle.
Section 215. Authorization of Appropriations.
    Section 215 authorizes $220 million over Fiscal Years 2008-
2010 to carry out the activities of Subtitle A.
    Subsection 215(c) requires that at least $15 million of 
appropriated funds be made available to carry out section 
213(2)(B) (youth gang prevention activities). The Committee 
intends to attack a key source of violence--youth gangs--
through a long-term investment in prevention programs.

   SUBTITLE B--ASSISTANCE TO ENHANCE THE RULE OF LAW AND STRENGTHEN 
                         CIVILIAN INSTITUTIONS.

    Subtitle B authorizes assistance for non-security programs 
to address the endemic conditions giving rise to trafficking-
related violence in Central America.
Section 221. Authorization of Assistance.
    This section authorizes the President to provide assistance 
for the countries of Central America to carry out the 
activities enumerated in section 222.
Section 222. Activities Supported.
    Section 222 authorizes the President to undertake 
activities to build the capacity, transparency, and trust in 
the justice systems of recipient countries and reduce 
unacceptable high impunity rates in Central American countries. 
Assistance may also be used to enhance the Electronic Travel 
Document (ETD) System and Repatriation Notification System.
Section 223. Authorization of Appropriations.
    Section 223 authorizes $185 million over Fiscal Years 2008-
2010 to carry out the activities of Subtitle B.

                  TITLE III--ADMINISTRATIVE PROVISIONS

    Title III places several conditions on provision of 
assistance to recipient countries, caps the number of 
contractors present in each recipient country, and prohibits 
cash payments.
Section 301. Conditions on Provision of Assistance.
    Section 301(a) prohibits the President from providing 
assistance under title I or II to a foreign country under the 
Act until 15 days after the President determines that the 
requirements described in subsection (b) have been met. This 
Committee intends this determination to be consistent with, and 
in some cases, stronger than, existing requirements in law, 
including section 1033 of the National Defense Authorization 
Act for Fiscal Year 1998, as amended.
    Subsection 301(b) spells out the requirements referred to 
in subsection (a). These requirements include:

        (1) LHuman rights. The committee expects the President 
        to assess whether there is a reasonable expectation 
        that assistance could adversely affect the human rights 
        situation in a recipient country. This assessment could 
        be based on the recent history of the country--
        including assessments in the Department of State's 
        Country Reports on Human Rights Practices, the proposed 
        units to be funded, and other relevant factors.

        (2) LVetting. The President must determine that vetting 
        procedures are in place within the U.S. Government to 
        ensure that units to be funded have not been involved 
        in human rights violations. The Committee expects these 
        procedures to be consistent with, and perhaps based on, 
        existing procedures for ``Leahy'' human rights vetting.

        (3) LCivilian prosecution. The Committee remains 
        concerned regarding reports that the armed forces and 
        elements in police forces in several potential 
        recipient countries have failed to prosecute alleged 
        human rights violators. The Act therefore requires the 
        President to determine that a civilian authority in the 
        foreign country is investigating and prosecuting any 
        member of any agency receiving assistance under title I 
        or II who has been credibly alleged to have committed 
        human rights violations from the date of enactment of 
        this Act.

        (4) LBackground investigations. The Committee expects a 
        recipient country to conduct background checks to 
        ensure equipment and material provided as support will 
        be used by appropriate personnel.

        (5) LEnd-use monitoring. The conditions enumerated in 
        subsections 301(b)(5)-301(b)(8) are intended to 
        reinforce existing end-use monitoring provisions.
Section 302. Limitations on Provision of Assistance.
    Subsection 302(a) articulates the sense of Congress that to 
the extent possible, activities undertaken under Title I and II 
should be performed by employees and officers of the recipient 
country, not by U.S. citizens or foreign nationals retained as 
contractors in a recipient country. The Committee intends that 
the limitations enumerated in Section 302 address concerns 
regarding the extensive use of contractors to execute U.S. 
Government-funded counternarcotics operations.
    Subsection 302(b)(1) caps at 50 the total number of U.S. 
citizens or foreign nationals retained as contractors to carry 
out Title I of this Act. The purpose of this provision is to 
ensure that either officials or employees of the recipient 
country or U.S. Government employees implement programs under 
this Act.
    Subsection 302(b)(2) caps at 100 the total number of U.S. 
citizens or foreign nationals retained as contractors to carry 
out Title II of this Act.
    Subsection 302(b)(3) requires that none of the funds made 
available under this Act shall be made available for budget 
support or cash payments. The Committee fully expects that 
assistance provided under this Act will be in the form of 
equipment or training; no cash shall be offered to bolster a 
recipient country's counternarcotics efforts. The purpose of 
this limitation is to ensure that the assistance addresses 
those concerns identified by Mexico, Central America and the 
United States, and that the United States maintains visibility 
over assistance provided.
    Subsection 302(c) authorizes the President to waive the 
limitations in subsection (b) if it is in the national interest 
of the United States to do so. It is the Committee's belief 
that the President shall exercise this waiver only in limited 
circumstances.
Section 303. Limitation on Monitoring.
    This section prohibits transfer of surveillance-related 
equipment to a recipient country unless the President 
determines that the recipient country has cooperated with the 
United States to ensure that such equipment will be used 
principally for the purposes for which it is provided. The 
Committee understands that there may be rare instances where 
such equipment would be used in a non-counternarcotics context, 
such as a humanitarian relief operation. The determination 
required would encompass transfer of equipment to the Mexican 
Intelligence Agency.
Section 304. Exemption from Prohibition on Assistance for Law 
        Enforcement Forces.
    This section authorizes the President, notwithstanding 
section 660 of the Foreign Assistance Act of 1961 (22 U.S.C. 
2420) to provide assistance under Title I or II to the police 
forces of recipient countries. The Committee believes that such 
``notwithstanding'' authority is necessary to ensure that 
assistance flows to police forces in recipient countries 
engaged in counternarcotics activities.
Section 305. Relationship to Other Authority.
    This section makes clear that this Act is in no way 
intended to amend other authority to provide assistance to 
Mexico or Central America.
Section 306. Rule of Construction.
    This section confirms that the Arms Export Control Act (22 
U.S.C. 2751 et seq.) applies to all transfers of equipment 
under this Act, unless otherwise specified in this Act.

           TITLE IV--SUPPORT ACTIVITIES IN THE UNITED STATES

    This title authorizes activities in the United States to 
support the Merida Initiative. The Committee believes that the 
Merida Initiative will only be successful if the United States 
Government undertakes steps domestically, including reducing 
domestic drug demand and the southbound flow of illegal 
weapons.
Section 401. Report on Reduction of Drug Demand in the United States.
    Subsection 401(a) expresses the sense of Congress that 
taking steps to reduce drug demand in the United States is one 
of the most important contributions the United States can make 
to combat illicit narcotics trafficking.
    Subsection 401(b) requires the President to issue a report 
on the measures taken to reduce drug demand in the United 
States.
Section 402. Reduction of Southbound Flow of Illegal Weapons.
    This section is based on H.R. 5869 (``Southwest Border 
Violence Reduction Act of 2008'').
    Subsection 402(a) expresses the sense of Congress that the 
number of licensed gun sellers along the 2,000-mile U.S.-Mexico 
border dwarfs the number of ATF agents assigned to stop illegal 
weapons trafficking, and that a critical part of a United 
States contribution to the Merida Initiative is an effective 
strategy to combat the illegal southbound flow of arms.
    Subsection 402(b) requires the Attorney General to expand 
resources for Project Gunrunner, an initiative to identify, 
investigate, and prosecute individuals involved in the 
trafficking of firearms across the United States-Mexico border. 
The Committee notes the critical role of the ATF in tracking 
weapons across the border and believes that enhanced presence 
of the ATF and other appropriate law enforcement agencies along 
the border is critical to stopping the ``iron river'' of 
weapons. Subsection 402(b)(4) authorizes $15 million to carry 
out this subsection for each Fiscal Year 2008 through 2010.
    Subsection 402(c) requires the Attorney General, in 
cooperation with the Secretary of State, to assign agents of 
the ATF to the U.S. mission in Mexico. These agents shall focus 
on training Mexican law enforcement officers to conduct 
investigations relating to firearms trafficking and serial 
number restoration techniques. They will also be responsible 
for supporting investigations and tracing firearms recovered in 
Mexico, a key asset of the ATF that must be shared with Mexican 
law enforcement agencies.
Section 403. Reduction of Southbound Flow of Illegal Precursor 
        Chemicals and Bulk-Cash Transfers.
    This section expresses the sense of Congress that the 
United States Government must take steps to halt the flow from 
the U.S. to Mexico of precursor chemicals used in the 
production of illegal drugs.
Section 404. Report.
    This section requires the President to transmit a report 
regarding specific measures taken to stop the flow of precursor 
chemicals.

                   TITLE V. MISCELLANEOUS PROVISIONS.

    This title establishes a coordinator of U.S. Government 
activities to implement the Merida Initiative; requires the 
Administration to establish metrics to gauge success and ensure 
accountability of the Initiative; and requires a comprehensive 
report on activities undertaken pursuant to this Act.
Section 501. Coordinator of United States Government Activities to 
        Implement the Merida Initiative.
    Subsection 501(a) declares that a single coordinator is 
required to manage and track all U.S. Government Merida-related 
efforts to ensure accountability and avoid duplication. 
Although the Committee has provided the State Department 
latitude in determining specifically how to implement this Act, 
the Committee also understands that numerous entities will be 
involved in implementation. In turn, the Committee believes 
that a single coordinator is required to manage U.S. Government 
efforts and to serve as a point person for the recipient 
countries and the U.S. Congress. The Committee is particularly 
concerned regarding overlapping counternarcotics authorities 
and programs among several Departments and the concomitant 
difficulties in programmatic oversight such overlap creates.
    Subsection 501(b)(1) designates a high level coordinator 
within the Department of State to implement the Merida 
Initiative and spells out the responsibilities of the 
Coordinator, including designing an overall strategy to advance 
the purposes of this Act, and ensuring program and policy 
coordination among all agencies providing assistance under this 
Act. The Coordinator need not be a State Department employee 
prior to selection, but the position of the Coordinator shall 
be resident at the Department of State. Responsibilities 
include coordinating assistance provided by the Department of 
Defense pursuant to section 1004 of the National Defense 
Authorization Act for Fiscal Year 1991, as amended (Public Law 
101-510) and section 1033 of the National Defense Authorization 
Act for Fiscal Year 1998 (Public Law 105-85).
    The key responsibility of the Coordinator will be to 
review, oversee, and harmonize programs authorized pursuant to 
this Act. In that regard, the Committee expects that the 
Coordinator shall have control over designating budgetary 
priorities for all funds appropriated to the Department of 
State for the Merida Initiative. The Committee also expects 
that the Coordinator will work closely with other agencies to 
ensure their budgetary priorities are consistent with those of 
the overall Initiative.
    Subsection 501(b)(2) establishes that the Coordinator shall 
have the rank and status of ambassador. The Committee intends 
that the Coordinator shall work closely with the Assistant 
Secretary for Western Hemisphere Affairs, Department of State, 
but shall be independent of that office.
Section 502. Metrics and Oversight Mechanisms.
    Subsection 502(a) expresses the sense of Congress that the 
President should establish metrics to track the effectiveness 
of activities undertaken pursuant to this Act.
    Subsection 502(b) requires the President to develop metrics 
to identify, track, and manage the progress of activities 
undertaken pursuant to this Act. The Committee intends that the 
President will track metrics in order to determine the 
allocation of resources for counternarcotics and organized 
crime-related efforts. The Committee also expects that the 
President will consult with Congress in developing these 
metrics.
    Subsection 502(c) requires the President to transmit to the 
appropriate congressional committees a report that spells out 
the metrics the President shall establish.
Section 503. Report.
    This section requires the President to transmit to Congress 
a report on key aspects of the Act. The requirements are 
intended to mirror the provisions of the Act.
    Section 503(b)(4) requires an assessment of the human 
rights impact of the equipment and training provided under this 
Act. The Committee intends that all human rights reporting 
regarding activities undertaken pursuant to this Act will be 
catalogued in this report. To the extent such information would 
be relevant to the State Department's annual Country Reports on 
Human Rights Practices, required under sections 116(d) and 
502(B) of the Foreign Assistance Act of 1961 (22 U.S.C 2151n(d) 
and 2304(b)) and section 504 of the Trade Act of 1974 (19 
U.S.C. 2464), the Committee expects that the information will 
be inserted into that report as well.
Section 504. Sense of Congress.
    This section expresses a sense of Congress that the United 
States Government requires an integrated public diplomacy 
strategy to explain the purposes of the Merida Initiative. In 
particular, the U.S. Government must explain how the Initiative 
involves a partnership among the United States, Mexico, and 
countries of Central America to eradicate narcotics-related 
violence and crime.
Section 505. Sunset.
    This section provides that the authority for this Act shall 
expire after September 30, 2010.
                            Additional Views

    This legislation confirms that it is in the interest of the 
United States to fund programs to reintegrate deportees from 
the United States back into the societies of their home 
countries to avoid further criminal activity and authorizes 
such programs. In fact, the United States has provided such 
transitional assistance in Haiti and elsewhere.
    However, this is only one aspect of a three-part approach 
to the deportee dilemma. Last July, the Subcommittee on the 
Western Hemisphere held a hearing on deportees which examined 
this question and learned of specific problems relating to 
criminal deportations. First, we learned that when the United 
States deports an individual for a criminal act, the recipient 
country only learns of the offense triggering the deportation, 
not any other criminal act in the individual's past. This means 
a foreign government might not be prepared to receive a 
deportee with a very violent past simply because the U.S. did 
not transfer all of the relevant information about that person.
    Second, tightened U.S. laws removed much of the discretion 
from the deportation process. In some instances, this has been 
a serious problem for individuals and families who have made 
this country their home. There are cases of legal permanent 
residents of the United States who have lived here for many 
years, are raising children, pay taxes, own a home, or even 
serve in the military, but are deported because they commit a 
minor crime. These may not be the type of people we should be 
deporting.
    Congress needs to consider legislation to focus on all 
three parts of the deportation problem: Providing better 
information about criminal deportees by sending the full NCIC 
(National Crime Information Center) record on a criminal 
deportee to a foreign recipient government; increasing 
discretion so that a judge can determine if a person with deep 
ties to the U.S. who does not commit a serious crime might be 
eligible to remain in this country; and, helping countries 
absorb deportees through reintegration programs, as authorized 
under this act.

                                   Eliot L. Engel.

                                  
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