II 118th CONGRESS 1st Session S. 1689 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.

1. Short title This Act may be cited as the Combatting Fentanyl Trafficking from China and Mexico Act . 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 ). 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. 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. 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. 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. 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.