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H.R. 3164 (106th): Foreign Narcotics Kingpin Designation Act

The text of the bill below is as of Nov 19, 1999 (Referred to Senate Committee).

Source: GPO

HR 3164 RFS

106th CONGRESS

1st Session

H. R. 3164

IN THE SENATE OF THE UNITED STATES

November 3, 1999

Received

November 19, 1999

Read twice and referred to the Committee on Foreign Relations


AN ACT

To provide for the imposition of economic sanctions on certain foreign persons engaging in, or otherwise involved in, international narcotics trafficking.

    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 ‘Foreign Narcotics Kingpin Designation Act’.

SEC. 2. FINDINGS AND POLICY.

    (a) FINDINGS- Congress makes the following findings:

      (1) Presidential Decision Directive 42, issued on October 21, 1995, ordered agencies of the executive branch of the United States Government to, inter alia, increase the priority and resources devoted to the direct and immediate threat international crime presents to national security, work more closely with other governments to develop a global response to this threat, and use aggressively and creatively all legal means available to combat international crime.

      (2) Executive Order No. 12978 of October 21, 1995, provides for the use of the authorities in the International Emergency Economic Powers Act (IEEPA) (50 U.S.C. 1701 et seq.) to target and apply sanctions to 4 international narcotics traffickers and their organizations that operate from Colombia.

      (3) IEEPA was successfully applied to international narcotics traffickers in Colombia and based on that successful case study, Congress believes similar authorities should be applied worldwide.

      (4) There is a national emergency resulting from the activities of international narcotics traffickers and their organizations that threatens the national security, foreign policy, and economy of the United States.

    (b) POLICY- It shall be the policy of the United States to apply economic and other financial sanctions to significant foreign narcotics traffickers and their organizations worldwide to protect the national security, foreign policy, and economy of the United States from the threat described in subsection (a)(4).

SEC. 3. PURPOSE.

    The purpose of this Act is to provide authority for the identification of, and application of sanctions on a worldwide basis to, significant foreign narcotics traffickers, their organizations, and the foreign persons who provide support to those significant foreign narcotics traffickers and their organizations, whose activities threaten the national security, foreign policy, and economy of the United States.

SEC. 4. PUBLIC IDENTIFICATION OF SIGNIFICANT FOREIGN NARCOTICS TRAFFICKERS AND REQUIRED REPORTS.

    (a) PROVISION OF INFORMATION TO THE PRESIDENT- The Secretary of the Treasury, the Attorney General, the Secretary of Defense, the Secretary of State, and the Director of Central Intelligence shall consult among themselves and provide the appropriate and necessary information to enable the President to submit the report under subsection (b). This information shall also be provided to the Director of the Office of National Drug Control Policy.

    (b) PUBLIC IDENTIFICATION AND SANCTIONING OF SIGNIFICANT FOREIGN NARCOTICS TRAFFICKERS- Not later than June 1, 2000, and not later than June 1 of each year thereafter, the President shall submit a report to the Permanent Select Committee on Intelligence, and the Committees on the Judiciary, International Relations, Armed Services, and Ways and Means of the House of Representatives; and to the Select Committee on Intelligence, and the Committees on the Judiciary, Foreign Relations, Armed Services, and Finance of the Senate--

      (1) identifying publicly the foreign persons that the President determines are appropriate for sanctions pursuant to this Act; and

      (2) detailing publicly the President’s intent to impose sanctions upon these significant foreign narcotics traffickers pursuant to this Act.

    The report required in this subsection shall not include information on persons upon which United States sanctions imposed under this Act, or otherwise on account of narcotics trafficking, are already in effect.

    (c) UNCLASSIFIED REPORT REQUIRED- The report required by subsection (b) shall be submitted in unclassified form and made available to the public.

    (d) CLASSIFIED REPORT- (1) Not later than July 1, 2000, and not later than July 1 of each year thereafter, the President shall provide the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate with a report in classified form describing in detail the status of the sanctions imposed under this Act, including the personnel and resources directed towards the imposition of such sanctions during the preceding fiscal year, and providing background information with respect to newly-identified significant foreign narcotics traffickers and their activities.

    (2) Such classified report shall describe actions the President intends to undertake or has undertaken with respect to such significant foreign narcotics traffickers.

    (3) The report required under this subsection is in addition to the President’s obligations to keep the intelligence committees of Congress fully and currently informed pursuant to the provisions of the National Security Act of 1947.

    (e) EXCLUSION OF CERTAIN INFORMATION-

      (1) INTELLIGENCE- Notwithstanding any other provision of this section, the reports described in subsections (b) and (d) shall not disclose the identity of any person, if the Director of Central 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, the reports described in subsections (b) and (d) shall not disclose the name 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, and the Secretary of the Treasury, determines that such disclosure could reasonably be expected to--

      (A) 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) jeopardize the integrity or success of an ongoing criminal investigation or prosecution;

      (C) endanger the life or physical safety of any person; or

      (D) cause substantial harm to physical property.

    (f) NOTIFICATION REQUIRED- (1) Whenever either the Director of Central Intelligence or the Attorney General makes a determination under subsection (e), the Director of Central Intelligence or the Attorney General shall notify the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate, and explain the reasons for such determination.

    (2) The notification required under this subsection shall be submitted to the Permanent Select Committee on Intelligence of the House of Representatives and the Select Committee on Intelligence of the Senate not later than July 1, 2000, and on an annual basis thereafter.

    (g) DETERMINATIONS NOT TO APPLY SANCTIONS- (1) The President may waive the application to a significant foreign narcotics trafficker of any sanction authorized by this title if the President determines that the application of sanctions under this Act would significantly harm the national security of the United States.

    (2) When the President determines not to apply sanctions that are authorized by this Act to any significant foreign narcotics trafficker, the President shall notify the Permanent Select Committee on Intelligence, and the Committees on the Judiciary, International Relations, Armed Services, and Ways and Means of the House of Representatives, and the Select Committee on Intelligence, and the Committees on the Judiciary, Foreign Relations, Armed Services, and Finance of the Senate not later than 21 days after making such determination.

    (h) CHANGES IN DETERMINATIONS TO IMPOSE SANCTIONS-

      (1) ADDITIONAL DETERMINATIONS- (A) If at any time after the report required under subsection (b) the President finds that a foreign person is a significant foreign narcotics trafficker and such foreign person has not been publicly identified in a report required under subsection (b), the President shall submit an additional public report containing the information described in subsection (b) with respect to such foreign person to the Permanent Select Committee on Intelligence, and the Committees on the Judiciary, International Relations, Armed Services, and Ways and Means of the House of Representatives, and the Select Committee on Intelligence, and the Committees on the Judiciary, Foreign Relations, Armed Services, and Finance of the Senate.

      (B) The President may apply sanctions authorized under this Act to the significant foreign narcotics trafficker identified in the report submitted under subparagraph (A) as if the trafficker were originally included in the report submitted pursuant to subsection (b) of this section.

      (C) The President shall notify the Secretary of the Treasury of any determination made under this paragraph.

      (2) REVOCATION OF DETERMINATION- (A) Whenever the President finds that a foreign person that has been publicly identified as a significant foreign narcotics trafficker in the report required under subsection (b) or this subsection no longer engages in those activities for which sanctions under this Act may be applied, the President shall issue public notice of such a finding.

      (B) Not later than the date of the public notice issued pursuant to subparagraph (A), the President shall notify, in writing and in classified or unclassified form, the Permanent Select Committee on Intelligence, and the Committees on the Judiciary, International Relations, Armed Services, and Ways and Means of the House of Representatives, and the Select Committee on Intelligence, and the Committees on the Judiciary, Foreign Relations, Armed Services, and Finance of the Senate of actions taken under this paragraph and a description of the basis for such actions.

SEC. 5. BLOCKING ASSETS AND PROHIBITING TRANSACTIONS.

    (a) APPLICABILITY OF SANCTIONS- A significant foreign narcotics trafficker publicly identified in the report required under subsection (b) or (h)(1) of section 4 and foreign persons designated by the Secretary of the Treasury pursuant to subsection (b) of this section shall be subject to any and all sanctions as authorized by this Act. The application of sanctions on any foreign person pursuant to subsection (b) or (h)(1) of section 4 or subsection (b) of this section shall remain in effect until revoked pursuant to section 4(h)(2) or subsection (e)(1)(A) of this section or waived pursuant to section 4(g)(1).

    (b) BLOCKING OF ASSETS- Except to the extent provided in regulations, orders, instructions, licenses, or directives issued pursuant to this Act, and notwithstanding any contract entered into or any license or permit granted prior to the date on which the President submits the report required under subsection (b) or (h)(1) of section 4, there are blocked as of such date, and any date thereafter, all such property and interests in property within the United States, or within the possession or control of any United States person, which are owned or controlled by--

      (1) any significant foreign narcotics trafficker publicly identified by the President in the report required under subsection (b) or (h)(1) of section 4;

      (2) any foreign person that the Secretary of the Treasury, in consultation with the Attorney General, the Director of Central Intelligence, the Director of the Federal Bureau of Investigation, the Administrator of the Drug Enforcement Administration, the Secretary of Defense, and the Secretary of State, designates as materially assisting in, or providing financial or technological support for or to, or providing goods or services in support of, the international narcotics trafficking activities of a significant foreign narcotics trafficker so identified in the report required under subsection (b) or (h)(1) of section 4, or foreign persons designated by the Secretary of the Treasury pursuant to this subsection;

      (3) any foreign person that the Secretary of the Treasury, in consultation with the Attorney General, the Director of Central Intelligence, the Director of the Federal Bureau of Investigation, the Administrator of the Drug Enforcement Administration, the Secretary of Defense, and the Secretary of State, designates as owned, controlled, or directed by, or acting for or on behalf of, a significant foreign narcotics trafficker so identified in the report required under subsection (b) or (h)(1) of section 4, or foreign persons designated by the Secretary of the Treasury pursuant to this subsection; and

      (4) any foreign person that the Secretary of the Treasury, in consultation with the Attorney General, the Director of Central Intelligence, the Director of the Federal Bureau of Investigation, the Administrator of the Drug Enforcement Administration, the Secretary of Defense, and the Secretary of State, designates as playing a significant role in international narcotics trafficking.

    (c) PROHIBITED TRANSACTIONS- Except to the extent provided in regulations, orders, instructions, licenses, or directives issued pursuant to this Act, and notwithstanding any contract entered into or any license or permit granted prior to the date on which the President submits the report required under subsection (b) or (h)(1) of section 4, the following transactions are prohibited:

      (1) Any transaction or dealing by a United States person, or within the United States, in property or interests in property of any significant foreign narcotics trafficker so identified in the report required pursuant to subsection (b) or (h)(1) of section 4, and foreign persons designated by the Secretary of the Treasury pursuant to subsection (b) of this section.

      (2) Any transaction or dealing by a United States person, or within the United States, that evades or avoids, or has the effect of evading or avoiding, and any endeavor, attempt, or conspiracy to violate, any of the prohibitions contained in this Act.

    (d) LAW ENFORCEMENT AND INTELLIGENCE ACTIVITIES NOT AFFECTED- Nothing in this Act prohibits or otherwise limits the authorized law enforcement or intelligence activities of the United States, or the law enforcement activities of any State or subdivision thereof.

    (e) IMPLEMENTATION- (1) The Secretary of the Treasury, in consultation with the Attorney General, the Director of Central Intelligence, the Director of the Federal Bureau of Investigation, the Administrator of the Drug Enforcement Administration, the Secretary of Defense, and the Secretary of State, is authorized to take such actions as may be necessary to carry out this Act, including--

      (A) making those designations authorized by paragraphs (2), (3), and (4) of subsection (b) of this section and revocation thereof;

      (B) promulgating rules and regulations permitted under this Act; and

      (C) employing all powers conferred on the Secretary of the Treasury under this Act.

    (2) Each agency of the United States shall take all appropriate measures within its authority to carry out the provisions of this Act.

    (3) Section 552(a)(3) of title 5, United States Code, shall not apply to any record or information obtained or created in the implementation of this Act.

    (f) JUDICIAL REVIEW- The determinations, identifications, findings, and designations made pursuant to section 4 and subsection (b) of this section shall not be subject to judicial review.

SEC. 6. AUTHORITIES.

    (a) IN GENERAL- To carry out the purposes of this Act, the Secretary of the Treasury may, under such regulations as he may prescribe, by means of instructions, licenses, or otherwise--

      (1) investigate, regulate, or prohibit--

        (A) any transactions in foreign exchange, currency, or securities; and

        (B) transfers of credit or payments between, by, through, or to any banking institution, to the extent that such transfers or payments involve any interests of any foreign country or a national thereof; and

      (2) investigate, block during the pendency of an investigation, regulate, direct and compel, nullify, void, prevent, or prohibit any acquisition, holding, withholding, use, transfer, withdrawal, transportation, placement into foreign or domestic commerce of, or dealing in, or exercising any right, power, or privilege with respect to, or transactions involving, any property in which any foreign country or a national thereof has any interest,

    by any person, or with respect to any property, subject to the jurisdiction of the United States.

    (b) RECORDKEEPING- Pursuant to subsection (a), the Secretary of the Treasury may require recordkeeping, reporting, and production of documents to carry out the purposes of this Act.

    (c) DEFENSES-

      (1) Full and actual compliance with any regulation, order, license, instruction, or direction issued under this Act shall be a defense in any proceeding alleging a violation of any of the provisions of this Act.

      (2) No person shall be held liable in any court for or with respect to anything done or omitted in good faith in connection with the administration of, or pursuant to, and in reliance on this Act, or any regulation, instruction, or direction issued under this Act.

    (d) RULEMAKING- The Secretary of the Treasury may issue such other regulations or orders, including regulations prescribing recordkeeping, reporting, and production of documents, definitions, licenses, instructions, or directions, as may be necessary for the exercise of the authorities granted by this Act.

SEC. 7. ENFORCEMENT.

    (a) CRIMINAL PENALTIES- (1) Whoever willfully violates the provisions of this Act, or any license rule, or regulation issued pursuant to this Act, or willfully neglects or refuses to comply with any order of the President issued under this Act shall be--

      (A) imprisoned for not more than 10 years,

      (B) fined in the amount provided in title 18, United States Code, or, in the case of an entity, fined not more than $10,000,000,

    or both.

    (2) Any officer, director, or agent of any entity who knowingly participates in a violation of the provisions of this Act shall be imprisoned for not more than 30 years, fined not more than $5,000,000, or both.

    (b) CIVIL PENALTIES- A civil penalty not to exceed $1,000,000 may be imposed by the Secretary of the Treasury on any person who violates any license, order, rule, or regulation issued in compliance with the provisions of this Act.

    (c) JUDICIAL REVIEW OF CIVIL PENALTY- Any penalty imposed under subsection (b) shall be subject to judicial review only to the extent provided in section 702 of title 5, United States Code.

SEC. 8. DEFINITIONS.

    As used in this Act:

      (1) ENTITY- The term ‘entity’ means a partnership, joint venture, association, corporation, organization, network, group, or subgroup, or any form of business collaboration.

      (2) FOREIGN PERSON- The term ‘foreign person’ means any citizen or national of a foreign state or any entity not organized under the laws of the United States, but does not include a foreign state.

      (3) NARCOTICS TRAFFICKING- The term ‘narcotics trafficking’ means any illicit activity to cultivate, produce, manufacture, distribute, sell, finance, or transport narcotic drugs, controlled substances, or listed chemicals, or otherwise endeavor or attempt to do so, or to assist, abet, conspire, or collude with others to do so.

      (4) NARCOTIC DRUG; CONTROLLED SUBSTANCE; LISTED CHEMICAL- The terms ‘narcotic drug’, ‘controlled substance’, and ‘listed chemical’ have the meanings given those terms in section 102 of the Controlled Substances Act (21 U.S.C. 802).

      (5) PERSON- The term ‘person’ means an individual or entity.

      (6) UNITED STATES PERSON- The term ‘United States person’ means any United States citizen or national, permanent resident alien, an entity organized under the laws of the United States (including its foreign branches), or any person within the United States.

      (7) SIGNIFICANT FOREIGN NARCOTICS TRAFFICKER- The term ‘significant foreign narcotics trafficker’ means any foreign person that plays a significant role in international narcotics trafficking, that the President has determined to be appropriate for sanctions pursuant to this Act, and that the President has publicly identified in the report required under subsection (b) or (h)(1) of section 4.

SEC. 9. EXCLUSION OF PERSONS WHO HAVE BENEFITED FROM ILLICIT ACTIVITIES OF DRUG TRAFFICKERS.

    Section 212(a)(2)(C) of the Immigration and Nationality Act (8 U.S.C. 1182(a)(2)(C)) is amended to read as follows:

        ‘(C) CONTROLLED SUBSTANCE TRAFFICKERS- Any alien who the consular officer or the Attorney General knows or has reason to believe--

          ‘(i) is or has been an illicit trafficker in any controlled substance or in any listed chemical (as defined in section 102 of the Controlled Substances Act (21 U.S.C. 802)), or is or has been a knowing aider, abettor, assister, conspirator, or colluder with others in the illicit trafficking in any such controlled or listed substance or chemical, or endeavored to do so; or

          ‘(ii) is the spouse, son, or daughter of an alien inadmissible under clause (i), has, within the previous 5 years, obtained any financial or other benefit from the illicit activity of that alien, and knew or reasonably should have known that the financial or other benefit was the product of such illicit activity,

        is inadmissible.’.

SEC. 10. EFFECTIVE DATE.

    This Act shall take effect on the date of the enactment of this Act.

Passed the House of Representatives November 2, 1999.

Attest:

JEFF TRANDAHL,

Clerk.