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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1044 Introduced in Senate (IS)]

<DOC>

116th CONGRESS
  1st Session
                                S. 1044

  To impose sanctions with respect to foreign traffickers of illicit 
                    opioids, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 4, 2019

    Mr. Schumer (for himself, Mr. Cotton, Mr. Brown, Mr. Rubio, Mr. 
Menendez, Mrs. Shaheen, and Mr. Toomey) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
  To impose sanctions with respect to foreign traffickers of illicit 
                    opioids, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Fentanyl Sanctions 
Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Sense of Congress.
Sec. 4. Definitions.
     TITLE I--SANCTIONS WITH RESPECT TO FOREIGN OPIOID TRAFFICKERS

Sec. 101. Identification of foreign opioid traffickers.
Sec. 102. Sense of Congress and reporting on international opioid 
                            control regime.
Sec. 103. Imposition of sanctions.
Sec. 104. Description of sanctions.
Sec. 105. Waivers.
Sec. 106. Procedures for judicial review of classified information.
Sec. 107. Briefings on implementation.
     TITLE II--COMMISSION ON COMBATING SYNTHETIC OPIOID TRAFFICKING

Sec. 201. Commission on combating synthetic opioid trafficking.
                        TITLE III--OTHER MATTERS

Sec. 301. Director of National Intelligence program on use of 
                            intelligence resources in efforts to 
                            sanction foreign opioid traffickers.
Sec. 302. Department of Defense funding.
Sec. 303. Department of State funding.
Sec. 304. Department of the Treasury funding.
Sec. 305. Appropriate committees of Congress defined.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The Centers for Disease Control and Prevention estimate 
        that from June 2017 through June 2018 more than 48,000 people 
        in the United States died from an opioid overdose, with 
        synthetic opioids (excluding methadone), contributing to a 
        record 31,500 overdose deaths. While drug overdose deaths from 
        methadone, semi-synthetic opioids, and heroin have decreased in 
        recent months, overdose deaths from synthetic opioids have 
        continued to increase.
            (2) The objective of preventing the proliferation of 
        synthetic opioids though existing multilateral and bilateral 
        initiatives requires additional efforts to deny illicit actors 
        the financial means to sustain their markets and distribution 
        networks.
            (3) The People's Republic of China is the world's largest 
        producer of illicit fentanyl, fentanyl analogues, and their 
        immediate precursors. From the People's Republic of China, 
        those substances are shipped primarily through express 
        consignment carriers or international mail directly to the 
        United States, or, alternatively, shipped directly to 
        transnational criminal organizations in Mexico, Canada, and the 
        Caribbean.
            (4) In 2015, Mexican heroin accounted for 93 percent of the 
        total weight of heroin seized in the United States, transported 
        to the United States by transnational criminal organizations 
        that maintain territorial influence over large regions in 
        Mexico and remain the greatest criminal drug threat to the 
        United States.
            (5) The United States and the People's Republic of China, 
        Mexico, and Canada have made important strides in combating the 
        illicit flow of opioids through bilateral efforts of their 
        respective law enforcement agencies.
            (6) Insufficient regulation of synthetic opioid production 
        and export and insufficient law enforcement efforts to combat 
        opioid trafficking in the People's Republic of China and Mexico 
        continue to contribute to a flood of opioids into the United 
        States.
            (7) While the Department of the Treasury used the Foreign 
        Narcotics Kingpin Designation Act (21 U.S.C. 1901 et seq.) to 
        sanction the first synthetic opioid trafficking entity in April 
        2018, precision economic and financial sanctions policy tools 
        are needed to address the flow of synthetic opioids.

SEC. 3. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the United States should apply economic and other 
        financial sanctions to foreign traffickers of illicit opioids 
        to protect the national security, foreign policy, and economy 
        of the United States; and
            (2) it is imperative that the People's Republic of China 
        follow through on the commitments it made to the United States 
        on December 6, 2018, through the Group of Twenty--
                    (A) to schedule the entire category of fentanyl-
                type substances as controlled substances; and
                    (B) to change its national and provincial laws and 
                increase provincial law enforcement efforts to 
                prosecute traffickers of fentanyl substances.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Alien; national; national of the united states.--The 
        terms ``alien'', ``national'', and ``national of the United 
        States'' have the meanings given those terms in section 101 of 
        the Immigration and Nationality Act (8 U.S.C. 1101).
            (2) Appropriate congressional committees and leadership.--
        The term ``appropriate congressional committees and 
        leadership'' means--
                    (A) the Committee on Armed Services, the Committee 
                on Banking, Housing, and Urban Affairs, the Committee 
                on Foreign Relations, the Committee on Homeland 
                Security and Governmental Affairs, the Committee on the 
                Judiciary, the Select Committee on Intelligence, and 
                the majority leader and the minority leader of the 
                Senate; and
                    (B) the Committee on Armed Services, the Committee 
                on Financial Services, the Committee on Foreign 
                Affairs, the Committee on Homeland Security, the 
                Committee on the Judiciary, the Permanent Select 
                Committee on Intelligence, and the Speaker and the 
                minority leader of the House of Representatives.
            (3) Controlled substance; listed chemical.--The terms 
        ``controlled substance'', ``listed chemical'', ``narcotic 
        drug'', and ``opioid'' have the meanings given those terms in 
        section 102 of the Controlled Substances Act (21 U.S.C. 802).
            (4) Entity.--The term ``entity'' means a partnership, joint 
        venture, association, corporation, organization, network, 
        group, or subgroup, or any form of business collaboration.
            (5) Foreign opioid trafficker.--The term ``foreign opioid 
        trafficker'' means any foreign person that the President 
        determines plays a significant role in opioid trafficking.
            (6) Foreign person.--The term ``foreign person''--
                    (A) means--
                            (i) any citizen or national of a foreign 
                        country; or
                            (ii) any entity not organized under the 
                        laws of the United States or a jurisdiction 
                        within the United States; and
                    (B) does not include the government of a foreign 
                country.
            (7) Knowingly.--The term ``knowingly'', with respect to 
        conduct, a circumstance, or a result, means that a person has 
        actual knowledge, or should have known, of the conduct, the 
        circumstance, or the result.
            (8) Opioid trafficking.--The term ``opioid trafficking'' 
        means any illicit activity--
                    (A) to cultivate, produce, manufacture, distribute, 
                sell, or knowingly finance or transport illicit 
                opioids, controlled substances that are opioids, listed 
                chemicals that are opioids, or active pharmaceutical 
                ingredients or chemicals that are used in the 
                production of controlled substances that are opioids;
                    (B) to attempt to carry out an activity described 
                in subparagraph (A); or
                    (C) to assist, abet, conspire, or collude with 
                other persons to carry out such an activity.
            (9) Person.--The term ``person'' means an individual or 
        entity.
            (10) United states person.--The term ``United States 
        person'' means--
                    (A) any citizen or national of the United States;
                    (B) any alien lawfully admitted for permanent 
                residence in the United States;
                    (C) any entity organized under the laws of the 
                United States or any jurisdiction within the United 
                States (including a foreign branch of such an entity); 
                or
                    (D) any person located in the United States.

     TITLE I--SANCTIONS WITH RESPECT TO FOREIGN OPIOID TRAFFICKERS

SEC. 101. IDENTIFICATION OF FOREIGN OPIOID TRAFFICKERS.

    (a) Public Report.--
            (1) In general.--The President shall submit to the 
        appropriate congressional committees and leadership, in 
        accordance with subsection (c), a report--
                    (A) identifying the foreign persons that the 
                President determines are foreign opioid traffickers;
                    (B) detailing progress the President has made in 
                implementing this title; and
                    (C) providing an update on cooperative efforts with 
                the Governments of Mexico and the People's Republic of 
                China with respect to combating foreign opioid 
                traffickers.
            (2) Identification of additional persons.--If, at any time 
        after submitting a report required by paragraph (1) and before 
        the submission of the next such report, the President 
        determines that a foreign person not identified in the report 
        is a foreign opioid trafficker, the President shall submit to 
        the appropriate congressional committees and leadership an 
        additional report containing the information required by 
        paragraph (1) with respect to the foreign person.
            (3) Exclusion.--The President shall not be required to 
        include in a report under paragraph (1) or (2) any persons with 
        respect to which the United States has imposed sanctions before 
        the date of the report under this title or any other provision 
        of law with respect to opioid trafficking.
            (4) Form of report.--
                    (A) In general.--Each report required by paragraph 
                (1) or (2) shall be submitted in unclassified form but 
                may include a classified annex.
                    (B) Availability to public.--The unclassified 
                portion of a report required by paragraph (1) or (2) 
                shall be made available to the public.
    (b) Classified Report.--
            (1) In general.--The President shall submit to the 
        appropriate congressional committees and leadership, in 
        accordance with subsection (c), a report, in classified form--
                    (A) describing in detail the status of sanctions 
                imposed under this title, including the personnel and 
                resources directed toward the imposition of such 
                sanctions during the preceding fiscal year;
                    (B) providing background information with respect 
                to persons newly identified as foreign opioid 
                traffickers and their illicit activities;
                    (C) describing actions the President intends to 
                undertake or has undertaken to implement this title; 
                and
                    (D) providing a strategy for identifying additional 
                foreign opioid traffickers.
            (2) Effect on other reporting requirements.--The report 
        required by paragraph (1) is in addition to the obligations of 
        the President to keep Congress fully and currently informed 
        pursuant to the provisions of the National Security Act of 1947 
        (50 U.S.C. 3001 et seq.).
    (c) Submission of Reports.--Not later than 180 days after the date 
of the enactment of this Act, and annually thereafter until the date 
that is 5 years after such date of enactment, the President shall 
submit the reports required by subsections (a) and (b) to the 
appropriate congressional committees and leadership.
    (d) Exclusion of Certain Information.--
            (1) Intelligence.--Notwithstanding any other provision of 
        this section, a report required by subsection (a) or (b) shall 
        not disclose the identity of any person if the Director of 
        National Intelligence determines that such disclosure could 
        compromise an intelligence operation, activity, source, or 
        method of the United States.
            (2) Law enforcement.--Notwithstanding any other provision 
        of this section, a report required by subsection (a) or (b) 
        shall not disclose the identity of any person if the Attorney 
        General, in coordination, as appropriate, with the Director of 
        the Federal Bureau of Investigation, the Administrator of the 
        Drug Enforcement Administration, the head of any other 
        appropriate Federal law enforcement agency, and the Secretary 
        of the Treasury, determines that such disclosure could 
        reasonably be expected--
                    (A) to compromise the identity of a confidential 
                source, including a State, local, or foreign agency or 
                authority or any private institution that furnished 
                information on a confidential basis;
                    (B) to jeopardize the integrity or success of an 
                ongoing criminal investigation or prosecution;
                    (C) to endanger the life or physical safety of any 
                person; or
                    (D) to cause substantial harm to physical property.
            (3) Notification required.--If the Director of National 
        Intelligence makes a determination under paragraph (1) or the 
        Attorney General makes a determination under paragraph (2), the 
        Director or the Attorney General, as the case may be, shall 
        notify the appropriate congressional committees and leadership 
        of the determination and the reasons for the determination.
    (e) Provision of Information Required for Reports.--The Secretary 
of the Treasury, the Attorney General, the Secretary of Defense, the 
Secretary of State, the Secretary of Homeland Security, and the 
Director of National Intelligence shall consult among themselves and 
provide to the President and the Director of the Office of National 
Drug Control Policy the appropriate and necessary information to enable 
the President to submit the reports required by subsection (a).

SEC. 102. SENSE OF CONGRESS AND REPORTING ON INTERNATIONAL OPIOID 
              CONTROL REGIME.

    (a) Sense of Congress.--It is the sense of Congress that, in order 
to apply economic and other financial sanctions to foreign traffickers 
of illicit opioids to protect the national security, foreign policy, 
and economy of the United States--
            (1) the President should instruct the Secretary of State to 
        commence immediately diplomatic efforts, both in appropriate 
        international fora such as the United Nations, the Group of 
        Seven, the Group of Twenty, trilaterally and bilaterally with 
        partners of the United States, to establish a multilateral 
        sanctions regime against foreign opioid traffickers; and
            (2) the Secretary of State, in consultation with the 
        Secretary of the Treasury, may consider forming a new coalition 
        of countries to establish a multilateral sanctions regime 
        against foreign opioid traffickers if certain countries in 
        existing multilateral fora fail to cooperate with respect to 
        establishing such a regime.
    (b) Reports to Congress.--
            (1) In general.--The President shall include, in each 
        report required by section 101(b), an assessment conducted by 
        the Secretary of State, in consultation with the Secretary of 
        the Treasury, of the extent to which any diplomatic efforts 
        described in subsection (a) have been successful.
            (2) Elements.--Each assessment required by paragraph (1) 
        shall include an identification of--
                    (A) the countries the governments of which have 
                agreed to undertake measures to apply economic or other 
                financial sanctions to foreign traffickers of illicit 
                opioids and a description of those measures; and
                    (B) the countries the governments of which have not 
                agreed to measures described in subparagraph (A), and, 
                with respect to those countries, other measures the 
                Secretary of State recommends that the United States 
                take to apply economic and other financial sanctions to 
                foreign traffickers of illicit opioids.

SEC. 103. IMPOSITION OF SANCTIONS.

    The President shall impose five or more of the sanctions described 
in section 104 with respect to each foreign person that is an entity, 
and four or more of such sanctions with respect to each foreign person 
that is an individual, that--
            (1) is identified as a foreign opioid trafficker in a 
        report submitted under section 101(a); or
            (2) the President determines is owned, controlled, directed 
        by, supplying or sourcing precursors for, or acting for or on 
        behalf of, such a foreign opioid trafficker.

SEC. 104. DESCRIPTION OF SANCTIONS.

    (a) In General.--The sanctions that may be imposed with respect to 
a foreign person under section 103 are the following:
            (1) Loans from united states financial institutions.--The 
        United States Government may prohibit any United States 
        financial institution from making loans or providing credits to 
        the foreign person.
            (2) Prohibitions on financial institutions.--The following 
        prohibitions may be imposed with respect to a foreign person 
        that is a financial institution:
                    (A) Prohibition on designation as primary dealer.--
                Neither the Board of Governors of the Federal Reserve 
                System nor the Federal Reserve Bank of New York may 
                designate, or permit the continuation of any prior 
                designation of, the financial institution as a primary 
                dealer in United States Government debt instruments.
                    (B) Prohibition on service as a repository of 
                government funds.--The financial institution may not 
                serve as agent of the United States Government or serve 
                as repository for United States Government funds.
        The imposition of either sanction under subparagraph (A) or (B) 
        shall be treated as one sanction for purposes of section 103, 
        and the imposition of both such sanctions shall be treated as 2 
        sanctions for purposes of that section.
            (3) Procurement ban.--The United States Government may not 
        procure, or enter into any contract for the procurement of, any 
        goods or services from the foreign person.
            (4) Foreign exchange.--The President may, pursuant to such 
        regulations as the President may prescribe, prohibit any 
        transactions in foreign exchange that are subject to the 
        jurisdiction of the United States and in which the foreign 
        person has any interest.
            (5) Banking transactions.--The President may, pursuant to 
        such regulations as the President may prescribe, prohibit any 
        transfers of credit or payments between financial institutions 
        or by, through, or to any financial institution, to the extent 
        that such transfers or payments are subject to the jurisdiction 
        of the United States and involve any interest of the foreign 
        person.
            (6) Property transactions.--The President may, pursuant to 
        such regulations as the President may prescribe, prohibit any 
        person from--
                    (A) acquiring, holding, withholding, using, 
                transferring, withdrawing, transporting, importing, or 
                exporting any property that is subject to the 
                jurisdiction of the United States and with respect to 
                which the foreign person has any interest;
                    (B) dealing in or exercising any right, power, or 
                privilege with respect to such property; or
                    (C) conducting any transaction involving such 
                property.
            (7) Ban on investment in equity or debt of sanctioned 
        person.--The President may, pursuant to such regulations or 
        guidelines as the President may prescribe, prohibit any United 
        States person from investing in or purchasing significant 
        amounts of equity or debt instruments of the foreign person.
            (8) Exclusion of corporate officers.--The President may 
        direct the Secretary of State to deny a visa to, and the 
        Secretary of Homeland Security to exclude from the United 
        States, any alien that the President determines is a corporate 
        officer or principal of, or a shareholder with a controlling 
        interest in, the foreign person.
            (9) Sanctions on principal executive officers.--The 
        President may impose on the principal executive officer or 
        officers of the foreign person, or on individuals performing 
        similar functions and with similar authorities as such officer 
        or officers, any of the sanctions described in paragraphs (1) 
        through (8) that are applicable.
    (b) Penalties.--A person that violates, attempts to violate, 
conspires to violate, or causes a violation of any regulation, license, 
or order issued to carry out subsection (a) shall be subject to the 
penalties set forth in subsections (b) and (c) of section 206 of the 
International Emergency Economic Powers Act (50 U.S.C. 1705) to the 
same extent as a person that commits an unlawful act described in 
subsection (a) of that section.
    (c) Exceptions.--
            (1) Intelligence activities.--Sanctions under this section 
        shall not apply with respect to any activity subject to the 
        reporting requirements under title V of the National Security 
        Act of 1947 (50 U.S.C. 3091 et seq.) or to any authorized 
        intelligence activities of the United States.
            (2) Exception relating to importation of goods.--The 
        authority to impose sanctions under subsection (a)(6) shall not 
        include the authority to impose sanctions on the importation of 
        goods.
            (3) Exception to comply with united nations headquarters 
        agreement.--Sanctions under subsection (a)(8) shall not apply 
        to an alien if admitting the alien into the United States is 
        necessary to permit the United States to comply with the 
        Agreement regarding the Headquarters of the United Nations, 
        signed at Lake Success June 26, 1947, and entered into force 
        November 21, 1947, between the United Nations and the United 
        States, the Convention on Consular Relations, done at Vienna 
        April 24, 1963, and entered into force March 19, 1967, or other 
        applicable international obligations.
    (d) Implementation; Regulatory Authority.--
            (1) Implementation.--The President may exercise all 
        authorities provided under sections 203 and 205 of the 
        International Emergency Economic Powers Act (50 U.S.C. 1702 and 
        1704) to carry out this section.
            (2) Regulatory authority.--The President shall issue such 
        regulations, licenses, and orders as are necessary to carry out 
        this section.

SEC. 105. WAIVERS.

    (a) Waiver for State-Owned Financial Institutions in Countries That 
Cooperate in Multilateral Anti-Trafficking Efforts.--
            (1) In general.--The President may, on a case-by-case 
        basis, waive for a period of not more than 12 months the 
        application of sanctions under this title with respect to a 
        financial institution that is owned or controlled, directly or 
        indirectly, by a foreign government or any political 
        subdivision, agency, or instrumentality of a foreign 
        government, if the President, not less than 30 days before the 
        waiver is to take effect, certifies to the appropriate 
        congressional committees and leadership that the foreign 
        government is closely cooperating with the United States in 
        efforts to prevent opioid trafficking.
            (2) Certification.--The President may certify under 
        paragraph (1) that a foreign government is closely cooperating 
        with the United States in efforts to prevent opioid trafficking 
        if that government is--
                    (A) implementing domestic laws to schedule all 
                fentanyl analogues as controlled substances; and
                    (B) doing two or more of the following:
                            (i) Implementing substantial improvements 
                        in regulations involving the chemical and 
                        pharmaceutical production and export of illicit 
                        opioids.
                            (ii) Implementing substantial improvements 
                        in judicial regulations to combat transnational 
                        criminal organizations that traffic opioids.
                            (iii) Increasing efforts to prosecute 
                        foreign opioid traffickers.
                            (iv) Increasing intelligence sharing and 
                        law enforcement cooperation with the United 
                        States with respect to opioid trafficking.
            (3) Subsequent renewal of waiver.--The President may renew 
        a waiver under paragraph (1) for subsequent periods of not more 
        than 6 months each if, not less than 30 days before the renewal 
        is to take effect, the Director of National Intelligence 
        certifies to the appropriate congressional committees and 
        leadership that the government of the country to which the 
        waiver applies has effectively implemented and is effectively 
        enforcing the measures that formed the basis for the 
        certification under paragraph (2).
    (b) Waivers for National Security and Access to Prescription 
Medications.--
            (1) In general.--The President may waive the application of 
        sanctions under this title with respect to a person if the 
        President determines that the application of such sanctions 
        with respect to that person would significantly harm--
                    (A) the national security of the United States; or
                    (B) subject to paragraph (2), the access of United 
                States persons to prescription medications.
            (2) Monitoring.--The President shall establish a monitoring 
        program to verify that a person receiving a waiver under 
        paragraph (1)(B) is not trafficking illicit opioids.
            (3) Notification.--Not later than 21 days after making a 
        determination under paragraph (1) with respect to a person, the 
        President shall notify the appropriate congressional committees 
        and leadership of the determination and the reasons for the 
        determination.
    (c) Humanitarian Waiver.--The President may waive, for renewable 
periods of 180 days, the application of the sanctions under this title 
if the President certifies to the appropriate congressional committees 
and leadership that the waiver is necessary for the provision of 
humanitarian assistance.

SEC. 106. PROCEDURES FOR JUDICIAL REVIEW OF CLASSIFIED INFORMATION.

    (a) In General.--If a finding under this title, or a prohibition, 
condition, or penalty imposed as a result of any such finding, is based 
on classified information (as defined in section 1(a) of the Classified 
Information Procedures Act (18 U.S.C. App.)) and a court reviews the 
finding or the imposition of the prohibition, condition, or penalty, 
the President may submit such information to the court ex parte and in 
camera.
    (b) Rule of Construction.--Nothing in this section shall be 
construed to confer or imply any right to judicial review of any 
finding under this title, or any prohibition, condition, or penalty 
imposed as a result of any such finding.

SEC. 107. BRIEFINGS ON IMPLEMENTATION.

    Not later than 90 days after the date of the enactment of the 
Fentanyl Sanctions Act, and every 180 days thereafter until the date 
that is 5 years after such date of enactment, the President, acting 
through the Secretary of State, in coordination with the Secretary of 
the Treasury, shall provide to the appropriate congressional committees 
and leadership a comprehensive briefing on efforts to implement this 
title.

     TITLE II--COMMISSION ON COMBATING SYNTHETIC OPIOID TRAFFICKING

SEC. 201. COMMISSION ON COMBATING SYNTHETIC OPIOID TRAFFICKING.

    (a) Establishment.--
            (1) In general.--There is established a commission to 
        develop a consensus on a strategic approach to combating the 
        flow of synthetic opioids into the United States.
            (2) Designation.--The commission established under 
        paragraph (1) shall be known as the ``Commission on Synthetic 
        Opioid Trafficking'' (in this section referred to as the 
        ``Commission'').
    (b) Membership.--
            (1) Composition.--
                    (A) In general.--Subject to subparagraph (B), the 
                Commission shall be composed of the following members:
                            (i) The Administrator of the Drug 
                        Enforcement Administration.
                            (ii) The Secretary of Homeland Security.
                            (iii) The Secretary of Defense.
                            (iv) The Secretary of the Treasury.
                            (v) The Secretary of State.
                            (vi) Two members appointed by the majority 
                        leader of the Senate, one of whom shall be a 
                        Member of the Senate and one of whom shall not 
                        be.
                            (vii) Two members appointed by the minority 
                        leader of the Senate, one of whom shall be a 
                        Member of the Senate and one of whom shall not 
                        be.
                            (viii) Two members appointed by the Speaker 
                        of the House of Representatives, one of whom 
                        shall be a Member of the House of 
                        Representatives and one of whom shall not be.
                            (ix) Two members appointed by the minority 
                        leader of the House of Representatives, one of 
                        whom shall be a Member of the House of 
                        Representatives and one of whom shall not be.
                    (B)(i) The members of the Commission who are not 
                Members of Congress and who are appointed under clauses 
                (vi) through (ix) of subparagraph (A) shall be 
                individuals who are nationally recognized for 
                expertise, knowledge, or experience in--
                            (I) transnational criminal organizations 
                        conducting synthetic opioid trafficking;
                            (II) the production, manufacturing, 
                        distribution, sale, or transportation of 
                        synthetic opioids; or
                            (III) relations between--
                                    (aa) the United States; and
                                    (bb) the People's Republic of 
                                China, Mexico, or any other country of 
                                concern with respect to trafficking in 
                                synthetic opioids.
                    (ii) An official who appoints members of the 
                Commission may not appoint an individual as a member of 
                the Commission if the individual possesses any personal 
                or financial interest in the discharge of any of the 
                duties of the Commission.
                    (iii)(I) All members of the Commission described in 
                clause (i) shall possess an appropriate security 
                clearance in accordance with applicable provisions of 
                law concerning the handling of classified information.
                    (II) For the purpose of facilitating the activities 
                of the Commission, the Director of National 
                Intelligence shall expedite to the fullest degree 
                possible the processing of security clearances that are 
                necessary for members of the Commission.
            (2) Co-chairs.--
                    (A) In general.--The Commission shall have 2 co-
                chairs, selected from among the members of the 
                Commission, one of whom shall be a member of the 
                majority party and one of whom shall be a member of the 
                minority party.
                    (B) Selection.--The individuals who serve as the 
                co-chairs of the Commission shall be jointly agreed 
                upon by the President, the majority leader of the 
                Senate, the minority leader of the Senate, the Speaker 
                of the House of Representatives, and the minority 
                leader of the House of Representatives.
    (c) Duties.--The duties of the Commission are as follows:
            (1) To define the core objectives and priorities of the 
        strategic approach described in subsection (a)(1).
            (2) To weigh the costs and benefits of various strategic 
        options to combat the flow of synthetic opioids from the 
        People's Republic of China, Mexico, and other countries.
            (3) To evaluate whether the options described in paragraph 
        (2) are exclusive or complementary, the best means for 
        executing such options, and how the United States should 
        incorporate and implement such options within the strategic 
        approach described in subsection (a)(1).
            (4) To review and make determinations on the difficult 
        choices present within such options, among them what norms-
        based regimes the United States should seek to establish to 
        encourage the effective regulation of dangerous synthetic 
        opioids.
            (5) To report on efforts by actors in the People's Republic 
        of China to subvert United States laws and to supply illicit 
        synthetic opioids to persons in the United States, including 
        up-to-date estimates of the scale of illicit synthetic opioids 
        flows from the People's Republic of China.
            (6) To report on the deficiencies in the regulation of 
        pharmaceutical and chemical production of controlled substances 
        and export controls with respect to such substances in the 
        People's Republic of China and other countries that allow 
        opioid traffickers to subvert such regulations and controls to 
        traffic illicit opioids into the United States.
            (7) To report on the scale of contaminated or counterfeit 
        drugs originating from the People's Republic of China and 
        India.
            (8) To report on how the United States could work more 
        effectively with provincial and local officials in the People's 
        Republic of China and other countries to combat the illicit 
        production of synthetic opioids.
            (9) In weighing the options for defending the United States 
        against the dangers of trafficking in synthetic opioids, to 
        consider possible structures and authorities that need to be 
        established, revised, or augmented within the Federal 
        Government.
    (d) Functioning of Commission.--The provisions of subsections (c), 
(d), (e), (g), (h), (i), and (m) of section 1652 of the John S. McCain 
National Defense Authorization Act for Fiscal Year 2019 (Public Law 
115-232) shall apply to the Commission to the same extent and in the 
same manner as such provisions apply to the commission established 
under that section, except that--
            (1) subsection (c)(1) of that section shall be applied and 
        administered by substituting ``30 days'' for ``45 days'';
            (2) subsection (g)(4)(A) of that section shall be applied 
        and administered by inserting ``and the Attorney General'' 
        after ``Secretary of Defense''; and
            (3) subsections (h)(2)(A) and (i)(1)(A) of that section 
        shall be applied and administered by substituting ``level V of 
        the Executive Schedule under section 5316'' for ``level IV of 
        the Executive Schedule under section 5315''.
    (e) Treatment of Information Relating to National Security.--
            (1) Responsibility of director of national intelligence.--
        The Director of National Intelligence shall assume 
        responsibility for the handling and disposition of any 
        information related to the national security of the United 
        States that is received, considered, or used by the Commission 
        under this section.
            (2) Information provided by congress.--Any information 
        related to the national security of the United States that is 
        provided to the Commission by the appropriate congressional 
        committees and leadership may not be further provided or 
        released without the approval of the chairperson of the 
        committee, or the Member of Congress, as the case may be, that 
        provided the information to the Commission.
            (3) Access after termination of commission.--
        Notwithstanding any other provision of law, after the 
        termination of the Commission under subsection (h), only the 
        members and designated staff of the appropriate congressional 
        committees and leadership, the Director of National 
        Intelligence (and the designees of the Director), and such 
        other officials of the executive branch as the President may 
        designate shall have access to information related to the 
        national security of the United States that is received, 
        considered, or used by the Commission.
    (f) Reports.--The Commission shall submit to the appropriate 
congressional committees and leadership--
            (1) not later than 270 days after the date of the enactment 
        of this Act, an initial report on the activities and 
        recommendations of the Commission under this section; and
            (2) not later than 270 days after the submission of the 
        initial report under paragraph (1), a final report on the 
        activities and recommendations of the Commission under this 
        section.
    (g) Limitation on Funding.--Of amounts made available under 
sections 302, 303, and 304 to carry out this Act, not more than 
$5,000,000 shall be available to the Commission in any of fiscal years 
2020 through 2025.
    (h) Termination.--
            (1) In general.--The Commission, and all the authorities of 
        this section, shall terminate at the end of the 120-day period 
        beginning on the date on which the final report required by 
        subsection (f)(2) is submitted to the appropriate congressional 
        committees and leadership.
            (2) Winding up of affairs.--The Commission may use the 120-
        day period described in paragraph (1) for the purposes of 
        concluding its activities, including providing testimony to 
        Congress concerning the final report required by subsection 
        (f)(2) and disseminating the report.

                        TITLE III--OTHER MATTERS

SEC. 301. DIRECTOR OF NATIONAL INTELLIGENCE PROGRAM ON USE OF 
              INTELLIGENCE RESOURCES IN EFFORTS TO SANCTION FOREIGN 
              OPIOID TRAFFICKERS.

    (a) Program Required.--
            (1) In general.--The Director of National Intelligence 
        shall, with the concurrence of the Director of the Office of 
        National Drug Control Policy, carry out a program to allocate 
        and enhance use of resources of the intelligence community, 
        including intelligence collection and analysis, to assist the 
        Secretary of the Treasury and the Administrator of the Drug 
        Enforcement Administration in efforts to identify and impose 
        sanctions with respect to foreign opioid traffickers under 
        title I.
            (2) Focus on illicit finance.--To the extent practicable, 
        efforts described in paragraph (1) shall--
                    (A) take into account specific illicit finance 
                risks related to narcotics trafficking; and
                    (B) be developed in consultation with the 
                Undersecretary of the Treasury for Terrorism and 
                Financial Crimes, appropriate officials of the Office 
                of Intelligence and Analysis of the Department of the 
                Treasury, the Director of the Financial Crimes 
                Enforcement Network, and appropriate Federal law 
                enforcement agencies.
    (b) Review of Counternarcotics Efforts of the Intelligence 
Community.--The Director of National Intelligence shall, in 
coordination with the Director of the Office of National Drug Control 
Policy, carry out a comprehensive review of the current intelligence 
collection priorities of the intelligence community for 
counternarcotics purposes in order to identify whether such priorities 
are appropriate and sufficient in light of the number of lives lost in 
the United States each year due to use of illegal drugs.
    (c) Reports.--
            (1) Quarterly reports on program.--Not later than 90 days 
        after the date of the enactment of this Act, and every 90 days 
        thereafter, the Director of National Intelligence and the 
        Director of the Office of National Drug Control Policy shall 
        jointly submit to the appropriate congressional committees and 
        leadership a report on the status and accomplishments of the 
        program required by subsection (a) during the 90-day period 
        ending on the date of the report. The first report under this 
        paragraph shall also include a description of the amount of 
        funds devoted by the intelligence community to the efforts 
        described in subsection (a) during each of fiscal years 2017 
        and 2018.
            (2) Report on review.--Not later than 120 days after the 
        date of the enactment of this Act, the Director of National 
        Intelligence and the Director of the Office of National Drug 
        Control Policy shall jointly submit to the appropriate 
        congressional committees and leadership a comprehensive 
        description of the results of the review required by subsection 
        (b), including whether the priorities described in that 
        subsection are appropriate and sufficient in light of the 
        number of lives lost in the United States each year due to use 
        of illegal drugs. If the report concludes that such priorities 
        are not so appropriate and sufficient, the report shall also 
        include a description of the actions to be taken to modify such 
        priorities in order to assure than such priorities are so 
        appropriate and sufficient.
    (d) Intelligence Community Defined.--In this section, the term 
``intelligence community'' has the meaning given that term in section 
3(4) of the National Security Act of 1947 (50 U.S.C. 3003(4)).

SEC. 302. DEPARTMENT OF DEFENSE FUNDING.

    (a) Source of Funds.--Subject to subsection (b), amounts authorized 
to be appropriated for each of fiscal years 2020 through 2025 for the 
Department of Defense for operation and maintenance shall be available 
for operations and activities described in subsection (c).
    (b) Limitation on Amount Available.--
            (1) In general.--Subject to paragraph (2), the amount 
        available under subsection (a) in a fiscal year to carry out 
        operations and activities described in subsection (c) may not 
        exceed the following:
                    (A) In fiscal year 2020, $25,000,000.
                    (B) In each of fiscal years 2021 through 2025, 
                $35,000,000.
            (2) Exclusion of funds for us southcom from limitation.--
        Amounts authorized to be appropriated for a fiscal year for 
        operation and maintenance and available for such fiscal year 
        for the United States Southern Command for operations and 
        activities described in subsection (c)(2) shall not count 
        toward the limitation applicable to such fiscal year under 
        paragraph (1).
    (c) Operations and Activities.--The operations and activities 
described in this subsection are the following:
            (1) The operations and activities of any department or 
        agency of the United States Government (other than the 
        Department of Defense) in carrying out this Act.
            (2) The operations and activities of the Department of 
        Defense in support of any other department or agency of the 
        United States Government in carrying out this Act.
    (d) Transfer Authority.--
            (1) In general.--The Secretary of Defense may transfer 
        funds authorized to be appropriated for the Department of 
        Defense as described in subsection (a) to any other department 
        or agency of the United States Government to carry out this 
        Act.
            (2) Notice requirements.--Any transfer under this 
        subsection shall not be subject to any reprogramming 
        requirements under law. However, a notice on any such transfer 
        shall be provided to the appropriate committees of Congress.
            (3) Inapplicability of transfer limitations.--Any transfer 
        under this subsection in a fiscal year shall not count toward 
        or apply against any limitation on amounts transferrable by the 
        Department of Defense in such fiscal year, including any 
        limitation specified in an annual defense authorization Act for 
        such fiscal year.

SEC. 303. DEPARTMENT OF STATE FUNDING.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of State to carry out the operations and 
activities described in subsection (b)--
            (1) $25,000,000 for fiscal year 2020; and
            (2) $35,000,000 for each of fiscal years 2021 through 2025.
    (b) Operations and Activities Described.--The operations and 
activities described in this subsection are the following:
            (1) The operations and activities of any department or 
        agency of the United States Government (other than the 
        Department of State) in carrying out this Act.
            (2) The operations and activities of the Department of 
        State in support of any other department or agency of the 
        United States Government in carrying out this Act.
    (c) Notification Requirement.--
            (1) In general.--Except as provided in paragraph (2), 
        amounts authorized to be appropriated by subsection (a) may not 
        be obligated until 15 days after the date on which the 
        President notifies the appropriate committees of Congress of 
        the President's intention to obligate such funds.
            (2) Waiver.--
                    (A) In general.--The Secretary of State may waive 
                the notification requirement under paragraph (1) if the 
                Secretary determines that such a waiver is in the 
                national security interests of the United States.
                    (B) Notification requirement.--If the Secretary 
                exercises the authority provided under subparagraph (A) 
                to waive the notification requirement under paragraph 
                (1), the Secretary shall notify the appropriate 
                committees of Congress of the President's intention to 
                obligate amounts authorized to be appropriated by 
                subsection (a) as soon as practicable, but not later 
                than 3 days after obligating such funds.
    (d) Transfer Authority.--
            (1) In general.--The Secretary of State may transfer funds 
        authorized to be appropriated by subsection (a) to any other 
        department or agency of the United States Government to carry 
        out this Act.
            (2) Notice requirements.--Any transfer under this 
        subsection shall not be subject to any reprogramming 
        requirements under law. However, a notice on any such transfer 
        shall be provided to the appropriate committees of Congress.

SEC. 304. DEPARTMENT OF THE TREASURY FUNDING.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of the Treasury to carry out the 
operations and activities described in subsection (b)--
            (1) $25,000,000 for fiscal year 2020; and
            (2) $35,000,000 for each of fiscal years 2021 through 2025.
    (b) Operations and Activities Described.--The operations and 
activities described in this subsection are the following:
            (1) The operations and activities of any department or 
        agency of the United States Government (other than the 
        Department of the Treasury) in carrying out this Act.
            (2) The operations and activities of the Department of the 
        Treasury in support of any other department or agency of the 
        United States Government in carrying out this Act.
    (c) Notification Requirement.--
            (1) In general.--Except as provided in paragraph (2), 
        amounts authorized to be appropriated by subsection (a) may not 
        be obligated until 15 days after the date on which the 
        President notifies the appropriate committees of Congress of 
        the President's intention to obligate such funds.
            (2) Waiver.--
                    (A) In general.--The Secretary of the Treasury may 
                waive the notification requirement under paragraph (1) 
                if the Secretary determines that such a waiver is in 
                the national security interests of the United States.
                    (B) Notification requirement.--If the Secretary 
                exercises the authority provided under subparagraph (A) 
                to waive the notification requirement under paragraph 
                (1), the Secretary shall notify the appropriate 
                committees of Congress of the President's intention to 
                obligate amounts authorized to be appropriated by 
                subsection (a) as soon as practicable, but not later 
                than 3 days after obligating such funds.
    (d) Transfer Authority.--
            (1) In general.--The Secretary of the Treasury may transfer 
        funds authorized to be appropriated by subsection (a) to any 
        other department or agency of the United States Government to 
        carry out this Act.
            (2) Notice requirements.--Any transfer under this 
        subsection shall not be subject to any reprogramming 
        requirements under law. However, a notice on any such transfer 
        shall be provided to the appropriate committees of Congress.

SEC. 305. APPROPRIATE COMMITTEES OF CONGRESS DEFINED.

    In this title, the term ``appropriate committees of Congress'' 
means--
            (1) the Committee on Armed Services, the Committee on 
        Banking, Housing, and Urban Affairs, the Committee on Foreign 
        Relations, the Select Committee on Intelligence, and the 
        Committee on Appropriations of the Senate; and
            (2) the Committee on Armed Services, the Committee on 
        Financial Services, the Committee on Foreign Affairs, the 
        Permanent Select Committee on Intelligence, and the Committee 
        on Appropriations of the House of Representatives.
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