[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3164 Referred in Senate (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.