I

106TH CONGRESS

1ST SESSION H. R. 2105

To provide for the treatment of the actions of certain foreign narcotics

traffickers as an unusual and extraordinary threat to the United States

for purposes of the International Emergency Economic Powers Act.

IN THE HOUSE OF REPRESENTATIVES

JUNE 9, 1999

Mr. MCCOLLUM (for himself, Mr. RANGEL, Mr. GOSS, Mr. GILMAN, and Mr.

MICA) introduced the following bill; which was referred to the Committee

on International Relations, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each

case for consideration of such provisions as fall within the jurisdiction of

the committee concerned

A BILL

To provide for the treatment of the actions of certain foreign

narcotics traffickers as an unusual and extraordinary

threat to the United States for purposes of the International Emergency Economic Powers Act.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Drug Kingpins Bank5 ruptcy Act of 1999’’.
2

•HR 2105 IH

1 SEC. 2. FINDINGS.

2 The Congress makes the following findings:

3 (1) It should be the policy of the United States

4 to impose economic and financial sanctions on for5 eign international narcotics traffickers and their or6 ganizations.

7 (2) Presidential Decision Directive 42, issued

8 on October 21, 1995, ordered agencies of the execu9 tive branch of the United States Government to,

10 inter alia, increase the priority and resources de11 voted to the direct and immediate threat inter12 national crime presents to national security, work

13 more closely with other governments to develop a

14 global response to this threat, and use aggressively

15 and creatively all legal means available to combat

16 international crime.

17 (3) Executive Order No. 12978 of October 21,

18 1995, exercised the authorities of the International

19 Emergency Economic Powers Act (IEEPA) to effec20 tively target and sanction four ‘‘Specifically Des21 ignated Narcotics Traffickers’’ and their organiza22 tions which operate from Colombia.

23 (4) Similar sanctions should be applied to addi24 tional international foreign narcotics traffickers op25 erating worldwide.
3

•HR 2105 IH

1 SEC. 3. PURPOSE.

2 The purpose of this Act is to provide for the use of

3 authorities in the International Emergency Economic

4 Powers Act to sanction additional specially designated

5 narcotics traffickers operating worldwide.

6 SEC. 4. DESIGNATION OF CERTAIN FOREIGN INTER7 NATIONAL NARCOTICS TRAFFICKERS.

8 (a) PREPARATION OF LIST OF NAMES.—Not later

9 than January 1, 2000, and not later than January 1 of

10 each year thereafter, the Secretary of the Treasury, in

11 consultation with the Attorney General, Director of Cen12 tral Intelligence, Secretary of Defense, and Secretary of

13 State, shall submit to the Director of National Drug Con14 trol Policy a list of those individuals who play a significant

15 role in international narcotics trafficking as of the date

16 the list is submitted.

17 (b) REVIEW BY DIRECTOR OF NATIONAL DRUG CON18 TROL POLICY.—Not later than February 1, 2000, and not

19 later than February 1 of each year thereafter, the Director

20 of National Drug Control Policy shall transmit to the

21 President the list submitted that year to the Director

22 under subsection (a) to the President, together with his

23 recommendations for the inclusion in, or exclusion from,

24 the list of specific individuals.

25 (c) EXCLUSION OF CERTAIN PERSONS FROM LIST.—

26 Notwithstanding any other provision of this section, nei-
4

•HR 2105 IH

1 ther the list described in subsections (a) and (b) nor the

2 accompanying recommendations of the Director of Na3 tional Drug Control Policy under subsection (b) shall in4 clude the name of any individual if the Director of Central

5 Intelligence determines that the disclosure of that person’s

6 role in international narcotics trafficking could com7 promise United States intelligence sources or methods.

8 The Director of Central Intelligence shall advise the Presi9 dent when a determination is made to withhold an individ10 ual’s identity under this subsection.

11 (d) DESIGNATION OF INDIVIDUALS AS THREATS TO

12 THE UNITED STATES.—The President shall determine not

13 later than March 1 of each year whether or not to des14 ignate persons on the list transmitted to the President

15 that year as persons constituting an unusual and extraor16 dinary threat to the national security, foreign policy, and

17 economy of the United States. The President shall notify

18 the Secretary of the Treasury of any person designated

19 under this subsection. If the President determines not to

20 designate any person on such list as such a threat, the

21 President shall submit a report to Congress setting forth

22 the reasons therefor.

23 (e) CHANGES IN DESIGNATIONS OF INDIVIDUALS.—

24 (1) ADDITIONAL INDIVIDUALS DESIGNATED.—

25 If at any time after March 1 of a year, but prior to
5

•HR 2105 IH

1 January 1 of the following year, the President deter2 mines that a person is playing a significant role in

3 international narcotics trafficking and has not been

4 designated under subsection (d) as a person consti5 tuting an unusual and extraordinary threat to the

6 national security, foreign policy, and economy of the

7 United States, the President may so designate the

8 person. The President shall notify the Secretary of

9 the Treasury of any person designated under this

10 paragraph.

11 (2) REMOVAL OF DESIGNATIONS OF INDIVID12 UALS.—Whenever the President determines that a

13 person designated under subsection (d) or paragraph

14 (1) of this subsection no longer poses an unusual

15 and extraordinary threat to the national security,

16 foreign policy, and economy of the United States,

17 the person shall no longer be considered as des18 ignated under that subsection.

19 (f) REFERENCES.—Any person designated under

20 subsection (d) or (e) may be referred to in this Act as

21 a ‘‘specially designated narcotics trafficker’’.

22 SEC. 5. BLOCKING ASSETS.

23 (a) FINDING.—Congress finds that a national emer24 gency exists with respect to any individual who is a spe25 cially designated narcotics trafficker.
6

•HR 2105 IH

1 (b) BLOCKING OF ASSETS.—Except to the extent

2 provided in section 203(b) of the International Emergency

3 Economic Powers Act (50 U.S.C. 1702(b)) and in regula4 tions, orders, directives, or licenses that may be issued

5 pursuant to this Act, and notwithstanding any contract

6 entered into or any license or permit granted prior to the

7 date of designation of a person as a specially designated

8 narcotics trafficker, there are hereby blocked all property

9 and interests in property that are, or after that date, come

10 within the United States, or that are, or after that date

11 come, within the possession or control of any United

12 States person, of—

13 (1) any specially designated narcotics trafficker;

14 (2) any person who materially assists in, pro15 vides financial or technological support for, or pro16 vides goods or services in support of, the narcotics

17 trafficking activities of a specially designated nar18 cotics trafficker; and

19 (3) any person determined by the Secretary of

20 the Treasury, in consultation with the Attorney Gen21 eral, Director of Central Intelligence, Secretary of

22 Defense, and Secretary of State, to be owned or con23 trolled by, or to act for or on behalf of, a specially

24 designated narcotics trafficker.
7

•HR 2105 IH

1 (c) PROHIBITED ACTS.—Except to the extent pro2 vided in section 203(b) of the International Emergency

3 Economic Powers Act or in any regulation, order, direc4 tive, or license that may be issued pursuant to this Act,

5 and notwithstanding any contract entered into or any li6 cense or permit granted prior to the date of designation

7 of a person as a specially designated narcotics trafficker,

8 the following acts are prohibited:

9 (1) Any transaction or dealing by a United

10 States person, or within the United States, in prop11 erty or interests in property of any specially des12 ignated narcotics trafficker.

13 (2) Any transaction or dealing by a United

14 States person, or within the United States, that

15 evades or avoids, has the purpose of evading or

16 avoiding, or attempts to violate, subsection (b).

17 (d) LAW ENFORCEMENT AND INTELLIGENCE ACTIVI18 TIES NOT AFFECTED.—Nothing in this section is intended

19 to prohibit or otherwise limit the authorized law enforce20 ment or intelligence activities of the United States, or the

21 law enforcement activities of any State or subdivision

22 thereof.

23 (e) IMPLEMENTATION.—The Secretary of the Treas24 ury, in consultation with the Attorney General, Director

25 of Central Intelligence, Secretary of Defense, and Sec-
8

•HR 2105 IH

1 retary of State, is authorized to take such actions, includ2 ing the promulgation of rules and regulations, and to em3 ploy all powers granted to the President by the Inter4 national Emergency Economic Powers Act as may be nec5 essary to carry out this section. The Secretary of the

6 Treasury may redelegate any of these functions to any

7 other officer or agency of the United States Government.

8 Each agency of the United States shall take all appro9 priate measures within its authority to carry out this sec10 tion.

11 (f) ENFORCEMENT.—Violations of licenses, orders, or

12 regulations under this Act shall be subject to the same

13 civil or criminal penalties as are provided by section 206

14 of the International Emergency Economic Powers Act (50

15 U.S.C. 1705) for violations of licenses, orders, and regula16 tions under that Act.

17 (g) DEFINITIONS.—In this section:

18 (1) ENTITY.—The term ‘‘entity’’ means a part19 nership, association, corporation, or other organiza20 tion, group, or subgroup.

21 (2) NARCOTICS TRAFFICKING.—The term ‘‘nar22 cotics trafficking’’ means any activity undertaken il23 licitly to cultivate, produce, manufacture, distribute,

24 sell, finance, or transport, or otherwise assist, abet,

25 conspire, or collude with others in illicit activities re-
9

•HR 2105 IH

1 lating to, narcotic drugs, including, but not limited

2 to, heroin, methamphetamine and cocaine.

3 (3) PERSON.—The term ‘‘person’’ means an in4 dividual or entity.

5 (4) UNITED STATES PERSON.—The term

6 ‘‘United States person’’ means any United States

7 citizen or national, permanent resident alien, entity

8 organized under the laws of the United States (in9 cluding foreign branches), or any person in the

10 United States.

11 SEC. 6. INITIAL LISTING OF SPECIALLY DESIGNATED NAR12 COTICS TRAFFICKERS.

13 (a) INITIAL DESIGNATION.—For the purposes of this

14 Act, and without regard to sections 4 and 5, the President

15 shall, not later than 30 days after the date of the enact16 ment of this Act, designate as specially designated nar17 cotics traffickers for purposes of this Act those persons

18 listed in subsection (b) who have been indicted in the

19 United States on narcotics trafficking charges, and whose

20 extradition has been requested by, or for whom a provi21 sional arrest warrant has been issued by, United States

22 Government officials.

23 (b) LIST.—The persons referred to in subsection (a)

24 are the following:
10

•HR 2105 IH

1 (1) Wei Hsueh-Kang, also known as Prasit

2 Chiwinitparya, and Charchai Chiwinnitipanya, born

3 on June 29, 1952, a resident of Myanmar.

4 (2) Khun Sa, also known as Chang Chi-Fu,

5 born on February 17, 1933, a resident of Myanmar.

6 (3) Jose de Jesus Amezcua-Contreras, a citizen

7 of Mexico, born on July 31, 1963.

8 (4) Luis Ignacio Amezcua-Contreras, a citizen

9 of Mexico, born on February 22, 1964.

10 (5) Ramon Arellano-Felix, a citizen of Mexico,

11 born on August 31, 1964.

12 (6) Rafael Caro-Quintero, a citizen of Mexico,

13 born on October 24, 1952.

14 (7) Vicente Carrillo-Fuentes, a citizen of Mex15 ico, born on October 16, 1962.

16 (8) Oscar Malherbe De Leon, a citizen of Mex17 ico, born on January 10, 1964.

18 (9) Arturo Paez-Martinez, a citizen of Mexico,

19 born on August 31, 1967.

20 (10) Charles Miller, also known as Eustace

21 O’Connor, a citizen of St. Kitts, born on March 29,

22 1960.

23 (11) Lorquet Saint-Hilaire, a citizen of Haiti,

24 born on March 23, 1969.
11

•HR 2105 IH

1 (12) Jhon Raul Castro, a citizen of Colombia,

2 born on September 5, 1963.

3 SEC. 7. DENIAL OF VISAS TO AND INADMISSIBILITY OF SPE4 CIALLY DESIGNATED NARCOTICS TRAF5 FICKERS.

6 (a) PROHIBITION.—The Secretary of State shall deny

7 a visa to, and the Attorney General may not admit to the

8 United States—

9 (1) any specially designated narcotics trafficker;

10 or

11 (2) any alien who the consular officer or the At12 torney General knows or has reason to believe—

13 (A) is a spouse or minor child of a spe14 cially designated narcotics trafficker; or

15 (B) is a person described in paragraph (2)

16 or (3) of section 5(b).

17 (b) EXCEPTIONS.—Subsection (a) shall not apply—

18 (1) where the Secretary of State finds, on a

19 case-by-case basis, that the entry into the United

20 States of the person is necessary for medical rea21 sons;

22 (2) upon the request of the Attorney General,

23 Director of Central Intelligence, Secretary of the

24 Treasury, or the Secretary of Defense; or
12

•HR 2105 IH

1 (3) for purposes of the prosecution of a spe2 cially designated narcotics trafficker.

Æ