[Congressional Record Volume 165, Number 102 (Tuesday, June 18, 2019)]
[Senate]
[Pages S3683-S3687]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 658. Mr. COTTON (for himself, Mr. Schumer, Mr. Crapo, Mr. Brown, 
Mr. Rubio, Mr. Menendez, Mrs. Shaheen, Mr. Toomey, Mr. Cornyn, Mrs. 
Capito, Mr. Peters, Mr. Markey, Mrs. Feinstein, and Mrs. Blackburn) 
submitted an amendment intended to be proposed by him to the bill S. 
1790, to authorize appropriations for fiscal year 2020 for military 
activities of the Department of Defense, for military construction, and 
for defense activities of the Department of Energy, to prescribe 
military personnel strengths for such fiscal year, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of division A, add the following:

 TITLE XVII--SANCTIONS WITH RESPECT TO FOREIGN TRAFFICKERS OF ILLICIT 
                           SYNTHETIC OPIOIDS

     SEC. 1701. SHORT TITLE.

       This title may be cited as the ``Fentanyl Sanctions Act''.

     SEC. 1702. FINDINGS.

       Congress makes the following findings:
       (1) The Centers for Disease Control and Prevention estimate 
     that from September 2017 through September 2018 more than 
     48,200 people in the United States died from an opioid 
     overdose, with synthetic opioids (excluding methadone), 
     contributing to a record 31,900 overdose deaths. While drug 
     overdose death estimates from methadone, semi-synthetic 
     opioids, and heroin have decreased in recent months, overdose 
     deaths from synthetic opioids have continued to increase.
       (2) Congress and the President have taken a number of 
     actions to combat the demand for illicit opioids in the 
     United States, including enacting into law the SUPPORT for 
     Patients and Communities Act (Public Law 115-271; 132 Stat. 
     3894). While new statutes and regulations have reduced the 
     rate of opioid prescriptions in recent years, fully 
     addressing the United States opioid crisis will involve 
     dramatically restricting the foreign supply of illicit 
     opioids.
       (3) The People's Republic of China is the world's largest 
     producer of illicit fentanyl, fentanyl analogues, and their 
     immediate precursors. From the People's Republic of China, 
     those substances are shipped primarily through express 
     consignment carriers or international mail directly to the 
     United States, or, alternatively, shipped directly to 
     transnational criminal organizations in Mexico, Canada, and 
     the Caribbean.
       (4) The United States and the People's Republic of China, 
     Mexico, and Canada have made important strides in combating 
     the illicit flow of opioids through bilateral efforts of 
     their respective law enforcement agencies.
       (5) The objective of preventing the proliferation of 
     illicit opioids though existing multilateral and bilateral 
     initiatives requires additional efforts to deny illicit 
     actors the financial means to sustain their markets and 
     distribution networks.
       (6) The implementation on May 1, 2019, of the regulations 
     of the People's Republic of China to schedule all fentanyl 
     analogues as controlled substances is a major step in 
     combating global opioid trafficking and represents a major 
     achievement in United States-China law enforcement dialogues. 
     However, that step will effectively fulfill the commitment 
     that President Xi Jinping of the People's Republic of China 
     made to President Donald Trump at the Group of Twenty meeting 
     in December 2018 only if the Government of the People's 
     Republic of China devotes sufficient resources to full 
     implementation and strict enforcement of the new regulations. 
     The effective enforcement of the new regulations should 
     result in diminished trafficking of illicit fentanyl 
     originating from the People's Republic of China into the 
     United States, so it is in the interests of both the United 
     States and the People's Republic of China to support the 
     effective enforcement of the regulations.
       (7) While the Department of the Treasury used the Foreign 
     Narcotics Kingpin Designation Act (21 U.S.C. 1901 et seq.) to 
     sanction the first synthetic opioid trafficking entity in 
     April 2018, additional economic and financial sanctions 
     policy tools are needed to help combat the flow of synthetic 
     opioids into the United States.

     SEC. 1703. SENSE OF CONGRESS.

       It is the sense of Congress that--
       (1) the United States should apply economic and other 
     financial sanctions to foreign traffickers of illicit opioids 
     to protect the national security, foreign policy, and economy 
     of the United States and the health of the people of the 
     United States;
       (2) it is imperative that the People's Republic of China 
     follow through on full implementation of the new regulations, 
     adopted May 1, 2019, to treat all fentanyl analogues as 
     controlled substances under the laws of the People's Republic 
     of China, including by devoting sufficient resources for 
     implementation and strict enforcement of the new regulations; 
     and
       (3) the effective enforcement of the new regulations should 
     result in diminished trafficking of illicit fentanyl 
     originating from the People's Republic of China into the 
     United States, so it is in the interests of both the United 
     States and the People's Republic of China to support full, 
     effective, and strict enforcement of the regulations.

     SEC. 1704. DEFINITIONS.

       In this title:
       (1) Alien; national; national of the united states.--The 
     terms ``alien'', ``national'', and ``national of the United 
     States'' have the meanings given those terms in section 101 
     of the Immigration and Nationality Act (8 U.S.C. 1101).
       (2) Appropriate congressional committees and leadership.--
     The term ``appropriate congressional committees and 
     leadership'' means--
       (A) the Committee on Appropriations, the Committee on Armed 
     Services, the Committee on Banking, Housing, and Urban 
     Affairs, the Committee on Foreign Relations, the Committee on 
     Homeland Security and Governmental Affairs, the Committee on 
     the Judiciary, the Select Committee on Intelligence, and the 
     majority leader and the minority leader of the Senate; and
       (B) the Committee on Appropriations, the Committee on Armed 
     Services, the Committee on Financial Services, the Committee 
     on Foreign Affairs, the Committee on Homeland Security, the 
     Committee on the Judiciary, the Permanent Select Committee on 
     Intelligence, and the Speaker and the minority leader of the 
     House of Representatives.
       (3) Controlled substance; listed chemical.--The terms 
     ``controlled substance'', ``listed chemical'', ``narcotic 
     drug'', and ``opioid'' have the meanings given those terms in 
     section 102 of the Controlled Substances Act (21 U.S.C. 802).
       (4) Entity.--The term ``entity'' means a partnership, joint 
     venture, association, corporation, organization, network, 
     group, or subgroup, or any form of business collaboration.
       (5) Foreign opioid trafficker.--The term ``foreign opioid 
     trafficker'' means any foreign person that the President 
     determines plays a significant role in opioid trafficking.
       (6) Foreign person.--The term ``foreign person''--
       (A) means--
       (i) any citizen or national of a foreign country; or
       (ii) any entity not organized under the laws of the United 
     States or a jurisdiction within the United States; and
       (B) does not include the government of a foreign country.
       (7) Knowingly.--The term ``knowingly'', 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.
       (8) Opioid trafficking.--The term ``opioid trafficking'' 
     means any illicit activity--
       (A) to produce, manufacture, distribute, sell, or knowingly 
     finance or transport illicit synthetic opioids, controlled 
     substances that are synthetic opioids, listed chemicals that 
     are synthetic opioids, or active pharmaceutical ingredients 
     or chemicals that are used in the production of controlled 
     substances that are synthetic opioids;
       (B) to attempt to carry out an activity described in 
     subparagraph (A); or
       (C) to assist, abet, conspire, or collude with other 
     persons to carry out such an activity.
       (9) Person.--The term ``person'' means an individual or 
     entity.
       (10) United states person.--The term ``United States 
     person'' means--
       (A) any citizen or national of the United States;
       (B) any alien lawfully admitted for permanent residence in 
     the United States;

[[Page S3684]]

       (C) any entity organized under the laws of the United 
     States or any jurisdiction within the United States 
     (including a foreign branch of such an entity); or
       (D) any person located in the United States.

    Subtitle A--Sanctions With Respect to Foreign Opioid Traffickers

     SEC. 1711. IDENTIFICATION OF FOREIGN OPIOID TRAFFICKERS.

       (a) Public Report.--
       (1) In general.--The President shall submit to the 
     appropriate congressional committees and leadership, in 
     accordance with subsection (c), a report--
       (A) identifying the foreign persons that the President 
     determines are foreign opioid traffickers;
       (B) detailing progress the President has made in 
     implementing this subtitle; and
       (C) providing an update on cooperative efforts with the 
     Governments of Mexico and the People's Republic of China with 
     respect to combating foreign opioid traffickers.
       (2) Identification of additional persons.--If, at any time 
     after submitting a report required by paragraph (1) and 
     before the submission of the next such report, the President 
     determines that a foreign person not identified in the report 
     is a foreign opioid trafficker, the President shall submit to 
     the appropriate congressional committees and leadership an 
     additional report containing the information required by 
     paragraph (1) with respect to the foreign person.
       (3) Exclusion.--The President shall not be required to 
     include in a report under paragraph (1) or (2) any persons 
     with respect to which the United States has imposed sanctions 
     before the date of the report under this subtitle or any 
     other provision of law with respect to opioid trafficking.
       (4) Form of report.--
       (A) In general.--Each report required by paragraph (1) or 
     (2) shall be submitted in unclassified form but may include a 
     classified annex.
       (B) Availability to public.--The unclassified portion of a 
     report required by paragraph (1) or (2) shall be made 
     available to the public.
       (b) Classified Report.--
       (1) In general.--The President shall submit to the 
     appropriate congressional committees and leadership, in 
     accordance with subsection (c), a report, in classified 
     form--
       (A) describing in detail the status of sanctions imposed 
     under this subtitle, including the personnel and resources 
     directed toward the imposition of such sanctions during the 
     preceding fiscal year;
       (B) providing background information with respect to 
     persons newly identified as foreign opioid traffickers and 
     their illicit activities;
       (C) describing actions the President intends to undertake 
     or has undertaken to implement this subtitle; and
       (D) providing a strategy for identifying additional foreign 
     opioid traffickers.
       (2) Effect on other reporting requirements.--The report 
     required by paragraph (1) is in addition to the obligations 
     of the President to keep Congress fully and currently 
     informed pursuant to the provisions of the National Security 
     Act of 1947 (50 U.S.C. 3001 et seq.).
       (c) Submission of Reports.--Not later than 180 days after 
     the date of the enactment of this Act, and annually 
     thereafter until the date that is 5 years after such date of 
     enactment, the President shall submit the reports required by 
     subsections (a) and (b) to the appropriate congressional 
     committees and leadership.
       (d) Exclusion of Certain Information.--
       (1) Intelligence.--Notwithstanding any other provision of 
     this section, a report required by subsection (a) or (b) 
     shall not disclose the identity of any person if the Director 
     of National 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, a report required by subsection (a) or (b) 
     shall not disclose the identity 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, the Secretary of the 
     Treasury, the Secretary of State, and the head of any other 
     appropriate Federal law enforcement agency, determines that 
     such disclosure could reasonably be expected--
       (A) to 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) to jeopardize the integrity or success of an ongoing 
     criminal investigation or prosecution;
       (C) to endanger the life or physical safety of any person; 
     or
       (D) to cause substantial harm to physical property.
       (3) Notification required.--If the Director of National 
     Intelligence makes a determination under paragraph (1) or the 
     Attorney General makes a determination under paragraph (2), 
     the Director or the Attorney General, as the case may be, 
     shall notify the appropriate congressional committees and 
     leadership of the determination and the reasons for the 
     determination.
       (4) Rule of construction.--Nothing in this section may be 
     construed to authorize or compel the disclosure of 
     information determined by the President to be law enforcement 
     information, national security information, or other 
     information the disclosure of which is prohibited by any 
     other provision of law.
       (e) Provision of Information Required for Reports.--The 
     Secretary of the Treasury, the Attorney General, the 
     Secretary of Defense, the Secretary of State, the Secretary 
     of Homeland Security, and the Director of National 
     Intelligence shall consult among themselves and provide to 
     the President and the Director of the Office of National Drug 
     Control Policy the appropriate and necessary information to 
     enable the President to submit the reports required by 
     subsection (a).

     SEC. 1712. SENSE OF CONGRESS ON INTERNATIONAL OPIOID CONTROL 
                   REGIME.

       It is the sense of Congress that, in order to apply 
     economic and other financial sanctions to foreign traffickers 
     of illicit opioids to protect the national security, foreign 
     policy, and economy of the United States--
       (1) the President should instruct the Secretary of State to 
     commence immediately diplomatic efforts, both in appropriate 
     international fora such as the United Nations, the Group of 
     Seven, the Group of Twenty, and trilaterally and bilaterally 
     with partners of the United States, to combat foreign opioid 
     trafficking, including by working to establish a multilateral 
     sanctions regime with respect to foreign opioid trafficking; 
     and
       (2) the Secretary of State, in consultation with the 
     Secretary of the Treasury, should intensify efforts to 
     maintain and strengthen the coalition of countries formed to 
     combat foreign opioid trafficking.

     SEC. 1713. IMPOSITION OF SANCTIONS.

       The President shall impose five or more of the sanctions 
     described in section 1714 with respect to each foreign person 
     that is an entity, and four or more of such sanctions with 
     respect to each foreign person that is an individual, that--
       (1) is identified as a foreign opioid trafficker in a 
     report submitted under section 1711(a); or
       (2) the President determines is owned, controlled, directed 
     by, knowingly supplying or sourcing precursors for, or acting 
     for or on behalf of, such a foreign opioid trafficker.

     SEC. 1714. DESCRIPTION OF SANCTIONS.

       (a) In General.--The sanctions that may be imposed with 
     respect to a foreign person under section 1713 are the 
     following:
       (1) Loans from united states financial institutions.--The 
     United States Government may prohibit any United States 
     financial institution from making loans or providing credits 
     to the foreign person.
       (2) Prohibitions on financial institutions.--The following 
     prohibitions may be imposed with respect to a foreign 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.

     The imposition of either sanction under subparagraph (A) or 
     (B) shall be treated as one sanction for purposes of section 
     1713, and the imposition of both such sanctions shall be 
     treated as 2 sanctions for purposes of that section.
       (3) Procurement ban.--The United States Government may not 
     procure, or enter into any contract for the procurement of, 
     any goods or services from the foreign person.
       (4) Foreign exchange.--The President may, pursuant to such 
     regulations as the President may prescribe, prohibit any 
     transactions in foreign exchange that are subject to the 
     jurisdiction of the United States and in which the foreign 
     person has any interest.
       (5) Banking transactions.--The President may, pursuant to 
     such regulations as the President may prescribe, 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 foreign person.
       (6) Property transactions.--The President may, pursuant to 
     such regulations as the President may prescribe, prohibit any 
     person from--
       (A) acquiring, holding, withholding, using, transferring, 
     withdrawing, or transporting any property that is subject to 
     the jurisdiction of the United States and with respect to 
     which the foreign person has any interest;
       (B) dealing in or exercising any right, power, or privilege 
     with respect to such property; or
       (C) conducting any transaction involving such property.
       (7) Ban on investment in equity or debt of sanctioned 
     person.--The President may, pursuant to such regulations or 
     guidelines as the President may prescribe, prohibit any 
     United States person from investing in or purchasing 
     significant amounts of equity or debt instruments of the 
     foreign 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

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     determines is a corporate officer or principal of, or a 
     shareholder with a controlling interest in, the foreign 
     person.
       (9) Sanctions on principal executive officers.--The 
     President may impose on the principal executive officer or 
     officers of the foreign 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.
       (b) Penalties.--A person that violates, attempts to 
     violate, conspires to violate, or causes a violation of any 
     regulation, license, or order issued to carry out subsection 
     (a) 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.
       (c) Exceptions.--
       (1) Intelligence and law enforcement activities.--Sanctions 
     under this section shall not apply with respect to--
       (A) any activity subject to the reporting requirements 
     under title V of the National Security Act of 1947 (50 U.S.C. 
     3091 et seq.); or
       (B) any authorized intelligence and law enforcement 
     activities of the United States.
       (2) Exception to comply with united nations headquarters 
     agreement.--Sanctions under subsection (a)(8) shall not apply 
     to an alien if admitting the alien into the United States is 
     necessary to permit the United States to comply with the 
     Agreement regarding the Headquarters of the United Nations, 
     signed at Lake Success June 26, 1947, and entered into force 
     November 21, 1947, between the United Nations and the United 
     States, the Convention on Consular Relations, done at Vienna 
     April 24, 1963, and entered into force March 19, 1967, or 
     other applicable international obligations.
       (d) Implementation; Regulatory Authority.--
       (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) Regulatory authority.--The President shall issue such 
     regulations, licenses, and orders as are necessary to carry 
     out this section.

     SEC. 1715. WAIVERS.

       (a) Waiver for State-Owned Financial Institutions in 
     Countries That Cooperate in Multilateral Anti-Trafficking 
     Efforts.--
       (1) In general.--The President may waive for a period of 
     not more than 12 months the application of sanctions under 
     this subtitle with respect to a financial institution that is 
     owned or controlled, directly or indirectly, by a foreign 
     government or any political subdivision, agency, or 
     instrumentality of a foreign government, if, not less than 15 
     days before the waiver is to take effect, the President 
     certifies to the appropriate congressional committees and 
     leadership that the foreign government is closely cooperating 
     with the United States in efforts to prevent opioid 
     trafficking.
       (2) Certification.--The President may certify under 
     paragraph (1) that a foreign government is closely 
     cooperating with the United States in efforts to prevent 
     opioid trafficking if that government is--
       (A) implementing domestic laws to schedule all fentanyl 
     analogues as controlled substances; and
       (B) doing two or more of the following:
       (i) Implementing substantial improvements in regulations 
     involving the chemical and pharmaceutical production and 
     export of illicit opioids.
       (ii) Implementing substantial improvements in judicial 
     regulations to combat transnational criminal organizations 
     that traffic opioids.
       (iii) Increasing efforts to prosecute foreign opioid 
     traffickers.
       (iv) Increasing intelligence sharing and law enforcement 
     cooperation with the United States with respect to opioid 
     trafficking.
       (3) Subsequent renewal of waiver.--The President may renew 
     a waiver under paragraph (1) for subsequent periods of not 
     more than 12 months each if, not less than 15 days before the 
     renewal is to take effect, the Director of National 
     Intelligence certifies to the appropriate congressional 
     committees and leadership that the government of the country 
     to which the waiver applies has effectively implemented and 
     is effectively enforcing the measures that formed the basis 
     for the certification under paragraph (2).
       (b) Waivers for National Security and Access to 
     Prescription Medications.--
       (1) In general.--The President may waive the application of 
     sanctions under this subtitle if the President determines 
     that the application of such sanctions would harm--
       (A) the national security interests of the United States; 
     or
       (B) subject to paragraph (2), the access of United States 
     persons to prescription medications.
       (2) Monitoring.--The President shall establish a monitoring 
     program to verify that a person that receives a waiver under 
     paragraph (1)(B) is not trafficking illicit opioids.
       (3) Notification.--Not later than 15 days after making a 
     determination under paragraph (1), the President shall notify 
     the appropriate congressional committees and leadership of 
     the determination and the reasons for the determination.
       (c) Humanitarian Waiver.--The President may waive, for 
     renewable periods of 180 days, the application of the 
     sanctions under this subtitle if the President certifies to 
     the appropriate congressional committees and leadership that 
     the waiver is necessary for the provision of humanitarian 
     assistance.

     SEC. 1716. PROCEDURES FOR JUDICIAL REVIEW OF CLASSIFIED 
                   INFORMATION.

       (a) In General.--If a finding under this subtitle, or a 
     prohibition, condition, or penalty imposed as a result of any 
     such finding, is based on classified information (as defined 
     in section 1(a) of the Classified Information Procedures Act 
     (18 U.S.C. App.)) and a court reviews the finding or the 
     imposition of the prohibition, condition, or penalty, the 
     President may submit such information to the court ex parte 
     and in camera.
       (b) Rule of Construction.--Nothing in this section shall be 
     construed to confer or imply any right to judicial review of 
     any finding under this subtitle, or any prohibition, 
     condition, or penalty imposed as a result of any such 
     finding.

     SEC. 1717. BRIEFINGS ON IMPLEMENTATION.

       Not later than 90 days after the date of the enactment of 
     the Fentanyl Sanctions Act, and every 180 days thereafter 
     until the date that is 5 years after such date of enactment, 
     the President, acting through the Secretary of State, in 
     coordination with the Secretary of the Treasury, shall 
     provide to the appropriate congressional committees and 
     leadership a comprehensive briefing on efforts to implement 
     this subtitle.

     SEC. 1718. INCLUSION OF ADDITIONAL MATERIAL IN INTERNATIONAL 
                   NARCOTICS CONTROL STRATEGY REPORT.

       Section 489(a) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2291(a)) is amended by adding at the end the 
     following:
       ``(9)(A) An assessment conducted by the Secretary of State, 
     in consultation with the Secretary of the Treasury, of the 
     extent to which any diplomatic efforts described in section 
     1712 of the Fentanyl Sanctions Act have been successful.
       ``(B) Each assessment required by subparagraph (A) shall 
     include an identification of--
       ``(i) the countries the governments of which have agreed to 
     undertake measures to apply economic or other financial 
     sanctions to foreign traffickers of illicit opioids and a 
     description of those measures; and
       ``(ii) the countries the governments of which have not 
     agreed to measures described in clause (i), and, with respect 
     to those countries, other measures the Secretary of State 
     recommends that the United States take to apply economic and 
     other financial sanctions to foreign traffickers of illicit 
     opioids.''.

    Subtitle B--Commission on Combating Synthetic Opioid Trafficking

     SEC. 1721. COMMISSION ON COMBATING SYNTHETIC OPIOID 
                   TRAFFICKING.

       (a) Establishment.--
       (1) In general.--There is established a commission to 
     develop a consensus on a strategic approach to combating the 
     flow of synthetic opioids into the United States.
       (2) Designation.--The commission established under 
     paragraph (1) shall be known as the ``Commission on Synthetic 
     Opioid Trafficking'' (in this section referred to as the 
     ``Commission'').
       (b) Membership.--
       (1) Composition.--
       (A) In general.--Subject to subparagraph (B), the 
     Commission shall be composed of the following members:
       (i) The Administrator of the Drug Enforcement 
     Administration.
       (ii) The Secretary of Homeland Security.
       (iii) The Secretary of Defense.
       (iv) The Secretary of the Treasury.
       (v) The Secretary of State.
       (vi) Two members appointed by the majority leader of the 
     Senate, one of whom shall be a Member of the Senate and one 
     of whom shall not be.
       (vii) Two members appointed by the minority leader of the 
     Senate, one of whom shall be a Member of the Senate and one 
     of whom shall not be.
       (viii) Two members appointed by the Speaker of the House of 
     Representatives, one of whom shall be a Member of the House 
     of Representatives and one of whom shall not be.
       (ix) Two members appointed by the minority leader of the 
     House of Representatives, one of whom shall be a Member of 
     the House of Representatives and one of whom shall not be.
       (B)(i) The members of the Commission who are not Members of 
     Congress and who are appointed under clauses (vi) through 
     (ix) of subparagraph (A) shall be individuals who are 
     nationally recognized for expertise, knowledge, or experience 
     in--
       (I) transnational criminal organizations conducting 
     synthetic opioid trafficking;
       (II) the production, manufacturing, distribution, sale, or 
     transportation of synthetic opioids; or
       (III) relations between--

       (aa) the United States; and
       (bb) the People's Republic of China, Mexico, or any other 
     country of concern with respect to trafficking in synthetic 
     opioids.

       (ii) An official who appoints members of the Commission may 
     not appoint an individual as a member of the Commission if 
     the individual possesses any personal or financial interest 
     in the discharge of any of the duties of the Commission.
       (iii)(I) All members of the Commission described in clause 
     (i) shall possess an appropriate security clearance in 
     accordance with applicable provisions of law concerning the 
     handling of classified information.

[[Page S3686]]

       (II) For the purpose of facilitating the activities of the 
     Commission, the Director of National Intelligence shall 
     expedite to the fullest degree possible the processing of 
     security clearances that are necessary for members of the 
     Commission.
       (2) Co-chairs.--
       (A) In general.--The Commission shall have 2 co-chairs, 
     selected from among the members of the Commission, one of 
     whom shall be a member of the majority party and one of whom 
     shall be a member of the minority party.
       (B) Selection.--The individuals who serve as the co-chairs 
     of the Commission shall be jointly agreed upon by the 
     President, the majority leader of the Senate, the minority 
     leader of the Senate, the Speaker of the House of 
     Representatives, and the minority leader of the House of 
     Representatives.
       (c) Duties.--The duties of the Commission are as follows:
       (1) To define the core objectives and priorities of the 
     strategic approach described in subsection (a)(1).
       (2) To weigh the costs and benefits of various strategic 
     options to combat the flow of synthetic opioids from the 
     People's Republic of China, Mexico, and other countries.
       (3) To evaluate whether the options described in paragraph 
     (2) are exclusive or complementary, the best means for 
     executing such options, and how the United States should 
     incorporate and implement such options within the strategic 
     approach described in subsection (a)(1).
       (4) To review and make determinations on the difficult 
     choices present within such options, among them what norms-
     based regimes the United States should seek to establish to 
     encourage the effective regulation of dangerous synthetic 
     opioids.
       (5) To report on efforts by actors in the People's Republic 
     of China to subvert United States laws and to supply illicit 
     synthetic opioids to persons in the United States, including 
     up-to-date estimates of the scale of illicit synthetic 
     opioids flows from the People's Republic of China.
       (6) To report on the deficiencies in the regulation of 
     pharmaceutical and chemical production of controlled 
     substances and export controls with respect to such 
     substances in the People's Republic of China and other 
     countries that allow opioid traffickers to subvert such 
     regulations and controls to traffic illicit opioids into the 
     United States.
       (7) To report on the scale of contaminated or counterfeit 
     drugs originating from the People's Republic of China and 
     India.
       (8) To report on how the United States could work more 
     effectively with provincial and local officials in the 
     People's Republic of China and other countries to combat the 
     illicit production of synthetic opioids.
       (9) In weighing the options for defending the United States 
     against the dangers of trafficking in synthetic opioids, to 
     consider possible structures and authorities that need to be 
     established, revised, or augmented within the Federal 
     Government.
       (d) Functioning of Commission.--The provisions of 
     subsections (c), (d), (e), (g), (h), (i), and (m) of section 
     1652 of the John S. McCain National Defense Authorization Act 
     for Fiscal Year 2019 (Public Law 115-232) shall apply to the 
     Commission to the same extent and in the same manner as such 
     provisions apply to the commission established under that 
     section, except that--
       (1) subsection (c)(1) of that section shall be applied and 
     administered by substituting ``30 days'' for ``45 days'';
       (2) subsection (g)(4)(A) of that section shall be applied 
     and administered by inserting ``and the Attorney General'' 
     after ``Secretary of Defense''; and
       (3) subsections (h)(2)(A) and (i)(1)(A) of that section 
     shall be applied and administered by substituting ``level V 
     of the Executive Schedule under section 5316'' for ``level IV 
     of the Executive Schedule under section 5315''.
       (e) Treatment of Information Relating to National 
     Security.--
       (1) Responsibility of director of national intelligence.--
     The Director of National Intelligence shall assume 
     responsibility for the handling and disposition of any 
     information related to the national security of the United 
     States that is received, considered, or used by the 
     Commission under this section.
       (2) Information provided by congress.--Any information 
     related to the national security of the United States that is 
     provided to the Commission by the appropriate congressional 
     committees and leadership may not be further provided or 
     released without the approval of the chairperson of the 
     committee, or the Member of Congress, as the case may be, 
     that provided the information to the Commission.
       (3) Access after termination of commission.--
     Notwithstanding any other provision of law, after the 
     termination of the Commission under subsection (h), only the 
     members and designated staff of the appropriate congressional 
     committees and leadership, the Director of National 
     Intelligence (and the designees of the Director), and such 
     other officials of the executive branch as the President may 
     designate shall have access to information related to the 
     national security of the United States that is received, 
     considered, or used by the Commission.
       (f) Reports.--The Commission shall submit to the 
     appropriate congressional committees and leadership--
       (1) not later than 270 days after the date of the enactment 
     of this Act, an initial report on the activities and 
     recommendations of the Commission under this section; and
       (2) not later than 270 days after the submission of the 
     initial report under paragraph (1), a final report on the 
     activities and recommendations of the Commission under this 
     section.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated $5,000,000 for each of fiscal years 2020 
     through 2023 to carry out this section.
       (h) Termination.--
       (1) In general.--The Commission, and all the authorities of 
     this section, shall terminate at the end of the 120-day 
     period beginning on the date on which the final report 
     required by subsection (f)(2) is submitted to the appropriate 
     congressional committees and leadership.
       (2) Winding up of affairs.--The Commission may use the 120-
     day period described in paragraph (1) for the purposes of 
     concluding its activities, including providing testimony to 
     Congress concerning the final report required by subsection 
     (f)(2) and disseminating the report.

                       Subtitle C--Other Matters

     SEC. 1731. DIRECTOR OF NATIONAL INTELLIGENCE PROGRAM ON USE 
                   OF INTELLIGENCE RESOURCES IN EFFORTS TO 
                   SANCTION FOREIGN OPIOID TRAFFICKERS.

       (a) Program Required.--
       (1) In general.--The Director of National Intelligence 
     shall, with the concurrence of the Director of the Office of 
     National Drug Control Policy, carry out a program to allocate 
     and enhance use of resources of the intelligence community, 
     including intelligence collection and analysis, to assist the 
     Secretary of the Treasury, the Secretary of State, and the 
     Administrator of the Drug Enforcement Administration in 
     efforts to identify and impose sanctions with respect to 
     foreign opioid traffickers under subtitle A.
       (2) Focus on illicit finance.--To the extent practicable, 
     efforts described in paragraph (1) shall--
       (A) take into account specific illicit finance risks 
     related to narcotics trafficking; and
       (B) be developed in consultation with the Undersecretary of 
     the Treasury for Terrorism and Financial Crimes, appropriate 
     officials of the Office of Intelligence and Analysis of the 
     Department of the Treasury, the Director of the Financial 
     Crimes Enforcement Network, and appropriate Federal law 
     enforcement agencies.
       (b) Review of Counternarcotics Efforts of the Intelligence 
     Community.--The Director of National Intelligence shall, in 
     coordination with the Director of the Office of National Drug 
     Control Policy, carry out a comprehensive review of the 
     current intelligence collection priorities of the 
     intelligence community for counternarcotics purposes in order 
     to identify whether such priorities are appropriate and 
     sufficient in light of the number of lives lost in the United 
     States each year due to use of illegal drugs.
       (c) Reports.--
       (1) Quarterly reports on program.--Not later than 90 days 
     after the date of the enactment of this Act, and every 90 
     days thereafter, the Director of National Intelligence and 
     the Director of the Office of National Drug Control Policy 
     shall jointly submit to the appropriate congressional 
     committees and leadership a report on the status and 
     accomplishments of the program required by subsection (a) 
     during the 90-day period ending on the date of the report. 
     The first report under this paragraph shall also include a 
     description of the amount of funds devoted by the 
     intelligence community to the efforts described in subsection 
     (a) during each of fiscal years 2017 and 2018.
       (2) Report on review.--Not later than 120 days after the 
     date of the enactment of this Act, the Director of National 
     Intelligence and the Director of the Office of National Drug 
     Control Policy shall jointly submit to the appropriate 
     congressional committees and leadership a comprehensive 
     description of the results of the review required by 
     subsection (b), including whether the priorities described in 
     that subsection are appropriate and sufficient in light of 
     the number of lives lost in the United States each year due 
     to use of illegal drugs. If the report concludes that such 
     priorities are not so appropriate and sufficient, the report 
     shall also include a description of the actions to be taken 
     to modify such priorities in order to assure than such 
     priorities are so appropriate and sufficient.
       (d) Intelligence Community Defined.--In this section, the 
     term ``intelligence community'' has the meaning given that 
     term in section 3(4) of the National Security Act of 1947 (50 
     U.S.C. 3003(4)).

     SEC. 1732. DEPARTMENT OF DEFENSE FUNDING.

       (a) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of Defense to carry out 
     the operations and activities described in subsection (b) 
     $25,000,000 for each of fiscal years 2020 through 2025.
       (b) Operations and Activities.--The operations and 
     activities described in this subsection are the operations 
     and activities of the Department of Defense in support of any 
     other department or agency of the United States Government 
     solely for purposes of carrying out this title.
       (c) Supplement Not Supplant.--Amounts made available under 
     subsection (a) shall supplement and not supplant other 
     amounts available to carry out the operations and activities 
     described in subsection (b).

[[Page S3687]]

       (d) Notification Requirement.--Amounts authorized to be 
     appropriated by subsection (a) may not be obligated until 15 
     days after the date on which the President notifies the 
     appropriate committees of Congress of the President's 
     intention to obligate such funds.
       (e) Concurrence of Secretary of State.--Operations and 
     activities described in subsection (b) carried out with 
     foreign persons shall be conducted with the concurrence of 
     the Secretary of State.

     SEC. 1733. DEPARTMENT OF STATE FUNDING.

       (a) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of State to carry out the 
     operations and activities described in subsection (b) 
     $25,000,000 for each of fiscal years 2020 through 2025.
       (b) Operations and Activities Described.--The operations 
     and activities described in this subsection are the 
     operations and activities of the Department of State in 
     carrying out this title.
       (c) Supplement Not Supplant.--Amounts authorized to be 
     appropriated by subsection (a) shall supplement and not 
     supplant other amounts available to carry out the operations 
     and activities described in subsection (b).
       (d) Notification Requirement.--Amounts authorized to be 
     appropriated by subsection (a) may not be obligated until 15 
     days after the date on which the President notifies the 
     appropriate committees of Congress of the President's 
     intention to obligate such funds.

     SEC. 1734. DEPARTMENT OF THE TREASURY FUNDING.

       (a) Authorization of Appropriations.--There are authorized 
     to be appropriated to the Secretary of the Treasury to carry 
     out the operations and activities described in subsection (b) 
     $25,000,000 for each of fiscal years 2020 through 2025.
       (b) Operations and Activities Described.--The operations 
     and activities described in this subsection are the 
     operations and activities of the Department of the Treasury 
     in carrying out this title.
       (c) Supplement Not Supplant.--Amounts authorized to be 
     appropriated by subsection (a) shall supplement and not 
     supplant other amounts available to carry out the operations 
     and activities described in subsection (b).
       (d) Notification Requirement.--Amounts authorized to be 
     appropriated by subsection (a) may not be obligated until 15 
     days after the date on which the President notifies the 
     appropriate committees of Congress of the President's 
     intention to obligate such funds.

     SEC. 1735. TERMINATION.

       The provisions of this title, and any sanctions imposed 
     pursuant to this title, shall terminate on the date that is 7 
     years after the date of the enactment of this Act.

     SEC. 1736. EXCEPTION RELATING TO IMPORTATION OF GOODS.

       (a) In General.--The authorities and requirements to impose 
     sanctions under this title shall not include the authority or 
     a requirement to impose sanctions on the importation of 
     goods.
       (b) Good Defined.--In this section, the term ``good'' means 
     any article, natural or manmade substance, material, supply 
     or manufactured product, including inspection and test 
     equipment, and excluding technical data.

     SEC. 1737. APPROPRIATE COMMITTEES OF CONGRESS DEFINED.

       In this subtitle, the term ``appropriate committees of 
     Congress'' means--
       (1) the Committee on Armed Services, the Committee on 
     Banking, Housing, and Urban Affairs, the Committee on Foreign 
     Relations, the Select Committee on Intelligence, and the 
     Committee on Appropriations of the Senate; and
       (2) the Committee on Armed Services, the Committee on 
     Financial Services, the Committee on Foreign Affairs, the 
     Permanent Select Committee on Intelligence, and the Committee 
     on Appropriations of the House of Representatives.
                                 ______