Combatting Fentanyl Trafficking from China and Mexico Act

Subjects: International Affairs


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1689 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                S. 1689

      To prioritize efforts of the Department of State to combat 
international trafficking in precursor chemicals and covered synthetic 
 drugs with the Government of Mexico, to provide for the imposition of 
  sanctions with respect to persons of the People's Republic of China 
 contributing to international proliferation of illicit drugs or their 
              means of production, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 18, 2023

Mr. Murphy (for himself and Mr. Hagerty) introduced the following bill; 
which was read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL


 
      To prioritize efforts of the Department of State to combat 
international trafficking in precursor chemicals and covered synthetic 
 drugs with the Government of Mexico, to provide for the imposition of 
  sanctions with respect to persons of the People's Republic of China 
 contributing to international proliferation of illicit drugs or their 
              means of production, 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.

    This Act may be cited as the ``Combatting Fentanyl Trafficking from 
China and Mexico Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Controlled substance; controlled substance analogue.--
        The terms ``controlled substance'' and ``controlled substance 
        analogue'' have the meanings given those terms in section 102 
        of the Controlled Substances Act (21 U.S.C. 802).
            (2) Covered synthetic drug.--The term ``covered synthetic 
        drug'' means--
                    (A) a synthetic controlled substance or synthetic 
                controlled substance analogue, including fentanyl or a 
                fentanyl analogue; or
                    (B) a new psychoactive substance.
            (3) Major drug-transit country; major illicit drug 
        producing country.--The terms ``major drug-transit country'' 
        and ``major illicit drug producing country'' have the meanings 
        given those terms in section 481(e) of the Foreign Assistance 
        Act of 1961 (22 U.S.C. 2291(e)).
            (4) New psychoactive substance.--The term ``new 
        psychoactive substance'' means a substance of abuse, or any 
        preparation thereof, that--
                    (A) is not--
                            (i) included in any schedule as a 
                        controlled substance under the Controlled 
                        Substances Act (21 U.S.C. 801 et seq.); or
                            (ii) controlled by the Single Convention on 
                        Narcotic Drugs, done at New York March 30, 
                        1961, or the Convention on Psychotropic 
                        Substances, done at Vienna February 21, 1971;
                    (B) is new or has reemerged on the illicit market; 
                and
                    (C) poses a threat to the public health and safety.
            (5) Precursor chemical.--The term ``precursor chemical'' 
        has the meaning given the term ``listed chemical'' in section 
        102 of the Controlled Substances Act (21 U.S.C. 802).

SEC. 3. PRIORITIZATION OF EFFORTS OF THE DEPARTMENT OF STATE TO COMBAT 
              INTERNATIONAL TRAFFICKING IN PRECURSOR CHEMICALS AND 
              COVERED SYNTHETIC DRUGS WITH THE GOVERNMENT OF MEXICO.

    (a) In General.--The Secretary of State shall prioritize efforts of 
the Department of State to combat international trafficking of 
precursor chemicals and covered synthetic drugs by carrying out 
programs and activities that include the following:
            (1) Strengthening law enforcement capabilities, rule of 
        law, and other security-related efforts to strengthen 
        counterdrug institutions and initiatives outlined in the United 
        States-Mexico Bicentennial Framework for Security, Public 
        Health, and Safe Communities and the North American Drug 
        Dialogue.
            (2) Strengthening joint bilateral efforts between the 
        United States and Mexico to, among other issues--
                    (A) combat covered synthetic drugs and the illicit 
                production of other drugs;
                    (B) better understand and reduce demand for drugs 
                in the United States and Mexico;
                    (C) increase interdiction of precursor chemicals 
                and covered synthetic drugs;
                    (D) pursue prosecutions of transnational criminal 
                organizations and illicit financing of those 
                organizations; and
                    (E) reduce the number of illicit firearms crossing 
                the border between the United States and Mexico.
            (3) Providing technical assistance and equipment, as 
        appropriate, to strengthen the capacity of enforcement agencies 
        of the Government of Mexico with respect to precursor chemicals 
        and covered synthetic drugs.
    (b) Report.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, the Secretary of State shall submit 
        to the appropriate congressional committees a report on the 
        implementation of this section.
            (2) Appropriate congressional committees defined.--In this 
        subsection, the term ``appropriate congressional committees'' 
        means--
                    (A) the Committee on Foreign Relations and the 
                Committee on Appropriations of the Senate; and
                    (B) the Committee on Foreign Affairs and the 
                Committee on Appropriations of the House of 
                Representatives.

SEC. 4. IMPOSITION OF SANCTIONS WITH RESPECT TO PERSONS OF THE PEOPLE'S 
              REPUBLIC OF CHINA CONTRIBUTING TO INTERNATIONAL 
              PROLIFERATION OF ILLICIT DRUGS OR THEIR MEANS OF 
              PRODUCTION.

    (a) In General.--The President may impose any of the sanctions 
described in subsection (c) with respect to a foreign person described 
in subsection (b) that is determined by the President--
            (1) to have engaged in, or attempted to engage in, 
        activities or transactions that have materially contributed to, 
        or pose a significant risk of materially contributing to, the 
        international proliferation of illicit drugs or their means of 
        production;
            (2) to have knowingly received any property or interest in 
        property that the foreign person knows--
                    (A) constitutes or is derived from proceeds of 
                activities or transactions described in paragraph (1); 
                or
                    (B) was used or intended to be used to commit or to 
                facilitate such activities or transactions;
            (3) to have provided, or attempted to provide, financial, 
        material, or technological support for, or goods or services in 
        support of--
                    (A) any activity or transaction described in 
                paragraph (1); or
                    (B) any sanctioned person;
            (4) to be or have been a leader or official of any 
        sanctioned person or of any foreign person described in 
        subsection (b) that has engaged in any activity or transaction 
        described in paragraph (1); or
            (5) to be owned, controlled, or directed by, or to have 
        acted or purported to act for or on behalf of, directly or 
        indirectly, any sanctioned person.
    (b) Foreign Persons Described.--A foreign person described in this 
subsection is a foreign person that is--
            (1) a citizen or national of the People's Republic of 
        China, including the Hong Kong Special Administrative Region; 
        or
            (2) an entity organized under the laws of the People's 
        Republic of China (including the Hong Kong Special 
        Administrative Region) or otherwise subject to the jurisdiction 
        of the Government of the People's Republic of China.
    (c) Sanctions Described.--The sanctions described in this 
subsection are the following:
            (1) Blocking of property.--The President may, pursuant to 
        the International Emergency Economic Powers Act (50 U.S.C. 1701 
        et seq.), block and prohibit all transactions in property and 
        interests in property of the sanctioned person if such property 
        and interests in property are in the United States, come within 
        the United States, or are or come within the possession or 
        control of a United States person.
            (2) Banking transactions.--The President may 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 sanctioned 
        person.
            (3) Loans from united states financial institutions.--The 
        President may prohibit any United States financial institution 
        from making loans or providing credit to the sanctioned person.
            (4) Foreign exchange transactions.--The President may 
        prohibit any transactions in foreign exchange that are subject 
        to the jurisdiction of the United States and in which the 
        sanctioned person has any interest.
            (5) Prohibition on investment in equity or debt of 
        sanctioned person.--The President may prohibit any United 
        States person from investing in or purchasing significant 
        amounts of equity or debt instruments of the sanctioned person.
            (6) Prohibitions on financial institutions.--The President 
        may direct that the following prohibitions be imposed with 
        respect to a sanctioned 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.
            (7) Procurement ban.--The President may direct that the 
        United States Government may not procure, or enter into any 
        contract for the procurement of, any goods or services from the 
        sanctioned 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 leader, 
        official, senior executive officer, or director of, or a 
        shareholder with a controlling interest in, the sanctioned 
        person.
            (9) Sanctions on principal executive officers.--The 
        President may impose on the principal executive officer or 
        officers of the sanctioned 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.
    (d) Inadmissibility of Certain Sanctioned Persons.--
            (1) Visas, admission, or parole.--Except as provided by 
        paragraph (3), an alien with respect to whom the President 
        imposed sanctions under paragraph (1) or (8) of subsection (c) 
        shall be--
                    (A) inadmissible to the United States;
                    (B) ineligible to receive a visa or other 
                documentation to enter the United States; and
                    (C) otherwise ineligible to be admitted or paroled 
                into the United States or to receive any other benefit 
                under the Immigration and Nationality Act (8 U.S.C. 
                1101 et seq.).
            (2) Current visas revoked.--
                    (A) In general.--The visa or other entry 
                documentation of any alien described in paragraph (1) 
                is subject to revocation regardless of the date on 
                which the visa or other entry documentation is or was 
                issued.
                    (B) Immediate effect.--A revocation under 
                subparagraph (A) shall--
                            (i) take effect immediately; and
                            (ii) cancel any other valid visa or entry 
                        documentation that is in the possession of the 
                        alien.
            (3) Exceptions.--Paragraphs (1) and (2) shall not apply 
        with respect to the admission of an alien described in 
        paragraph (1) if the President determines that the admission of 
        the alien would not be contrary to the interests of the United 
        States, including if the President determines that the 
        admission of the alien would further important United States 
        law enforcement objectives.
    (e) Implementation; Penalties.--
            (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) Penalties.--A person that violates, attempts to 
        violate, conspires to violate, or causes a violation of this 
        section or any regulation, license, or order issued to carry 
        out this section 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.
    (f) Definitions.--In this section:
            (1) Admission; admitted; alien; lawfully admitted for 
        permanent residence; national.--The terms ``admission'', 
        ``admitted'', ``alien'', ``lawfully admitted for permanent 
        residence'', and ``national'' have the meanings given those 
        terms in section 101 of the Immigration and Nationality Act (8 
        U.S.C. 1101).
            (2) Entity.--The term ``entity'' means a partnership, 
        association, trust, joint venture, corporation, group, 
        subgroup, or other organization.
            (3) Financial institution.--The term ``financial 
        institution'' includes--
                    (A) a depository institution (as defined in section 
                3(c)(1) of the Federal Deposit Insurance Act (12 U.S.C. 
                1813(c)(1))), including a branch or agency of a foreign 
                bank (as defined in section 1(b)(7) of the 
                International Banking Act of 1978 (12 U.S.C. 3101(7)));
                    (B) a credit union;
                    (C) a securities firm, including a broker or 
                dealer;
                    (D) an insurance company, including an agency or 
                underwriter; and
                    (E) any other entity that provides financial 
                services.
            (4) Foreign person.--The term ``foreign person'' means--
                    (A) any citizen or national of a foreign country 
                (including any such individual who is also a citizen or 
                national of the United States, if the individual does 
                not reside in the United States); or
                    (B) any entity not organized under the laws of the 
                United States or of any jurisdiction within the United 
                States.
            (5) Knowingly; knows.--The terms ``knowingly'' and 
        ``knows'', with respect to conduct, a circumstance, or a 
        result, means that a person has actual knowledge, or should 
        have known, of the conduct, the circumstance, or the result.
            (6) Means of production.--The terms ``means of production'' 
        includes any activities or transactions involving any 
        equipment, chemical, product, or material that may be used, 
        directly or indirectly, in the manufacture of illicit drugs or 
        precursor chemicals.
            (7) Person.--The term ``person'' means an individual or 
        entity.
            (8) Proliferation of illicit drugs.--The term 
        ``proliferation of illicit drugs'' means any illicit activity 
        to produce, manufacture, distribute, sell, or knowingly finance 
        or transport narcotic drugs, controlled substances, listed 
        chemicals, or controlled substance analogues, as defined in 
        section 102 of the Controlled Substances Act (21 U.S.C. 802).
            (9) Sanctioned person.--The term ``sanctioned person'' 
        means any person with respect to which sanctions are imposed 
        under this section.
            (10) United states financial institution.--The term 
        ``United States financial institution'' means a financial 
        institution (including its foreign branches)--
                    (A) organized under the laws of the United States 
                or of any jurisdiction within the United States; or
                    (B) located in the United States.
            (11) United states person.--The term ``United States 
        person'' means--
                    (A) a United States citizen or an alien lawfully 
                admitted for permanent residence to the United States;
                    (B) an entity organized under the laws of the 
                United States or of any jurisdiction within the United 
                States, including a foreign branch of such an entity; 
                or
                    (C) any person in the United States.

SEC. 5. AUTHORIZATION TO TERMINATE CERTAIN SANCTIONS AND EXPORT CONTROL 
              MEASURES IF THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF 
              CHINA TAKES CERTAIN COUNTERNARCOTICS MEASURES.

    (a) In General.--If the President makes the determination described 
in subsection (b), the President may--
            (1) terminate the application of sanctions imposed with 
        respect to persons of the People's Republic of China under 
        section 2 or Executive Order 14059 (50 U.S.C. 1701 note; 
        relating to imposing sanctions on foreign persons involved in 
        the global illicit drug trade); and
            (2) remove such persons from the Entity List maintained by 
        the Bureau of Industry and Security of the Department of 
        Commerce and set forth in Supplement No. 4 to part 744 of title 
        14, Code of Federal Regulations.
    (b) Certification Described.--A determination described in this 
subsection is a determination that, during the 12 months preceding the 
determination, the Government of the People's Republic of China made 
substantial efforts--
            (1) to adhere to its obligations under international 
        counternarcotics agreements; and
            (2) to take the counternarcotics measures described in 
        section 489(a)(1) of the Foreign Assistance Act of 1961 (22 
        U.S.C. 2291h(a)(1)).
    (c) Person of the People's Republic of China Defined.--In this 
section, the term ``person of the People's Republic of China'' means--
            (1) an individual who is a citizen or national of the 
        People's Republic of China; or
            (2) an entity organized under the laws of the People's 
        Republic of China or otherwise subject to the jurisdiction of 
        the Government of the People's Republic of China.

SEC. 6. REPORTS ON AIRPORTS, PORTS, AND STATES IN MEXICO THAT ARE MAJOR 
              TRANSIT SITES FOR PRECURSOR CHEMICALS OR COVERED 
              SYNTHETIC DRUGS.

    (a) Reports.--Not later than 90 days after any date on which the 
President identifies Mexico as a major drug-transit country or major 
illicit drug producing country under section 706(1) of the Foreign 
Relations Authorization Act, Fiscal Year 2003 (22 U.S.C. 2291j-1(1)), 
the President shall submit to the appropriate congressional committees 
a report identifying--
            (1) each airport and maritime port in Mexico that serves as 
        a major transit site or major producing site of precursor 
        chemicals or covered synthetic drugs; and
            (2) each State in Mexico that serves as a major transit 
        State or major producing State of precursor chemicals or 
        covered synthetic drugs.
    (b) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Relations of the Senate; and
            (2) the Committee on Foreign Affairs of the House of 
        Representatives.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--
            (1) International narcotics and law enforcement.--There is 
        authorized to be appropriated to the Secretary of State, for 
        each of fiscal years 2024 through 2027, $100,000,000 for 
        International Narcotics and Law Enforcement for Mexico.
            (2) Gun trafficking.--There is authorized to be 
        appropriated to U.S. Customs and Border Protection, for each of 
        fiscal years 2024 through 2027, in addition to amounts 
        otherwise made available for such purposes, $50,000,000, which 
        shall be used--
                    (A) to interdict the outbound flow of smuggled 
                firearms and illicit currency that facilitate the 
                activities of transnational criminal organizations; and
                    (B) to increase the number of weapons and the 
                amount of currency being seized from individuals 
                attempting to smuggle such firearms and currency from 
                the United States to Mexico.
            (3) Transnational criminal investigative unit.--There is 
        authorized to be appropriated to the Homeland Security 
        Investigations, for the period of fiscal years 2024 through 
        2027, $2,500,000, which shall be used to pay vetted members of 
        a Transnational Criminal Investigative Unit in Mexico a 
        monetary stipend in accordance with section 890C(d) of the 
        Homeland Security Act of 2022 (6 U.S.C. 475(d)), as added by 
        the Transnational Criminal Investigative Unit Stipend Act 
        (section 7105 of Public Law 117-263).
    (b) Limitation on Use of Funds.--None of the amounts authorized to 
be appropriated under subsection (a) may be obligated or expended until 
the Secretary of State certifies and reports to Congress that the 
Government of Mexico is taking sustained and effective steps--
            (1) to increase bilateral law enforcement cooperation with 
        the United States to counter precursor chemicals and covered 
        synthetic drugs, including steps--
                    (A) to identify laboratories of covered synthetic 
                drugs and illicit production sites of those drugs;
                    (B) to identify routes used to transit precursor 
                chemicals and covered synthetic drugs;
                    (C) to increase interdiction of precursor chemicals 
                and covered synthetic drugs;
                    (D) to share samples of seized precursor chemicals 
                and covered synthetic drugs; and
                    (E) to pursue prosecutions of transnational 
                criminal organizations and illicit financing of those 
                organizations; and
            (2) to increase cooperation in multilateral fora to address 
        precursor chemicals and covered synthetic drugs, including--
                    (A) the United Nations Commission on Narcotic 
                Drugs;
                    (B) the World Health Organization Expert Committee 
                on Drug Dependence;
                    (C) the International Narcotics Control Board; and
                    (D) the United Nations Office on Drugs and Crime.
                                 &lt;all&gt;
</pre></body></html>