Strengthening Sanctions on Fentanyl Traffickers Act of 2023

Bill: 118-s-2059
Sponsor: full_name: Sen. Menendez, Robert [D-NJ]
Introduced: 2023-06-20
Policy area: Crime and Law Enforcement
Subjects: Asia

China

Congressional oversight

Drug trafficking and controlled substances

Foreign and international banking

Foreign loans and debt

Foreign property

Government information and archives

International monetary system and foreign exchange

Mexico

North America

Organized crime

Presidents and presidential powers, Vice Presidents

Public contracts and procurement

Sanctions

Smuggling and trafficking

Visas and passports
Latest action: action_date: 2024-01-11
text: Committee on Banking, Housing, and Urban Affairs. Hearings held.

Summaries:
action_date: 2023-06-20
action_desc: Introduced in Senate
text: <p><strong>Strengthening Sanctions on Fentanyl Traffickers Act of 2023</strong></p><p>This bill provides statutory authority for certain sanctions and extends certain requirements with respect to foreign individuals or entities involved in trafficking fentanyl or fentanyl analogues into the United States.</p><p>For example, the bill extends until December 31, 2030, provisions that require the President to report on foreign opioid traffickers. It also requires the President to prioritize individuals who are citizens or nationals of China and entities that are based in China, including pharmaceutical companies, that are involved in trafficking fentanyl or fentanyl analogues in these reports.</p><p>In addition, the bill requires the President to continue to impose certain sanctions against specified transnational criminal cartels (i.e., Mexican cartels) and to notify Congress before ending such sanctions.</p><p>The bill also provides statutory authority for the executive order titled <em>Imposing Sanctions on Foreign Persons Involved in the Global Illicit Drug Trade</em>, which was issued on December 15, 2021. The order authorizes certain sanctions against foreign individuals or entities that are engaged in international drug trafficking, including blocking banking, property, and other financial transactions.&nbsp;</p><!--tinycomments|2.1|data:application/json;base64,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-->

tv_txt: II 118th CONGRESS 1st Session S. 2059 IN THE SENATE OF THE UNITED STATES June 20, 2023 Mr. Menendez 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 pharmaceutical companies of the People's Republic of China and certain cartels that traffic fentanyl into the United States, and for other purposes.

1. Short title This Act may be cited as the Strengthening Sanctions on Fentanyl Traffickers Act of 2023 . 2. Prioritization of identification of persons from the People's Republic of China Section 7211 of the Fentanyl Sanctions Act ( 21 U.S.C. 2311 ) is amended— (1) in subsection (a)— (A) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and (B) by inserting after paragraph (2) the following new paragraph (3): (3) Prioritization (A) In general In preparing the report required by paragraph (1), the President shall prioritize the identification of persons of the People's Republic of China involved in the shipment of fentanyl, fentanyl analogues, fentanyl precursors, precursors for fentanyl analogues, pre-precursors for fentanyl and fentanyl analogues, and equipment for the manufacturing of fentanyl and fentanyl-laced counterfeit pills to Mexico or any other country that is involved in the production of fentanyl that is trafficked into the United States, including— (i) any entity involved in the production of pharmaceuticals; and (ii) any person that is acting on behalf of any such entity. (B) Termination of prioritization (i) The President shall continue the prioritization described in subparagraph (A) until the People’s Republic of China is no longer the primary source for the shipment of fentanyl, fentanyl analogues, fentanyl precursors, precursors for fentanyl analogues, pre-precursors for fentanyl and fentanyl analogues, and equipment for the manufacturing of fentanyl and fentanyl-laced counterfeit pills to Mexico or any other country that is involved in the production of fentanyl that is trafficked into the United States; and (ii) the President so certifies to the appropriate congressional committees. (C) Person of the People's Republic of China defined In this section, the term person of the People's Republic of China means— (i) an individual who is a citizen or national of the People's Republic of China; or (ii) 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. ; and (2) in subsection (c), by striking the date that is 5 years after such date of enactment and inserting December 31, 2030 . 3. Sanctions with respect to significant fentanyl trafficking organizations (a) In general United States sanctions imposed on the transnational criminal organizations listed in subsection (b) provided for in the Foreign Narcotics Kingpin Designation Act ( 21 U.S.C. 1901 et seq. ), as in effect on the date of the enactment of this Act, shall remain in effect except as provided in subsection (c). (b) Transnational criminal organizations The transnational criminal organizations listed in this subsection are the following: (1) The Sinaloa Cartel. (2) The Jalisco New Generation Cartel. (3) The Beltran-Leyva Organization. (4) Los Zetas. (5) The Guerreros Unidos. (6) The Gulf Cartel. (7) The Juarez Cartel. (8) La Familia Michocana. (9) Los Rojos. (c) Termination of certain sanctions The President may terminate the application of any sanctions described in subsection (a) with respect to any transnational criminal organization listed in subsection (b) if the President submits to the appropriate congressional committees a notice that such transnational criminal organization is not engaging in the activity that was the basis for such sanctions. (d) Appropriate congressional committees defined In this section, the term appropriate congressional committees means— (1) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate; and (2) the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives. 4. Imposition of sanctions with respect to foreign persons involved in global illicit drug trade (a) In general The President may impose any of the sanctions described in subsection (b) with respect to any foreign person 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 trafficking 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 a leader or official of any sanctioned person or of any foreign person 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) 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. (c) 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 (b) 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 Secretary of State or the Secretary of Homeland Security, as appropriate, determines, based on a recommendation of the Attorney General, that the admission of the alien would further important United States law enforcement objectives. (d) 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. (e) Exception relating to importation of goods (1) In general The authorities and requirements to impose sanctions authorized under this Act shall not include the authority or a requirement to impose sanctions on the importation of goods. (2) Good defined In this paragraph, the term good means any article, natural or manmade substance, material, supply or manufactured product, including inspection and test equipment, and excluding technical data. (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) 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. (5) 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. (6) Person The term person means an individual or entity. (7) 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 ). (8) Sanctioned person The term sanctioned person means any person with respect to which sanctions are imposed under this section. (9) 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.