[House Report 114-380]
[From the U.S. Government Publishing Office]


114th Congress   }                                  {    Rept. 114-380
                        HOUSE OF REPRESENTATIVES
 1st Session     }                                  {           Part 1

======================================================================



 
              PREVENT TRAFFICKING IN CULTURAL PROPERTY ACT

                                _______
                                

               December 15, 2015.--Ordered to be printed

                                _______
                                

  Mr. McCaul, from the Committee on Homeland Security, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2285]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security, to whom was referred 
the bill (H.R. 2285) to improve enforcement against trafficking 
in cultural property and prevent stolen or illicit cultural 
property from financing terrorist and criminal networks, and 
for other purposes, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     3
Background and Need for Legislation..............................     3
Hearings.........................................................     3
Committee Consideration..........................................     4
Committee Votes..................................................     4
Committee Oversight Findings.....................................     4
New Budget Authority, Entitlement Authority, and Tax Expenditures     4
Congressional Budget Office Estimate.............................     4
Statement of General Performance Goals and Objectives............     5
Duplicative Federal Programs.....................................     5
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     5
Federal Mandates Statement.......................................     6
Preemption Clarification.........................................     6
Disclosure of Directed Rule Makings..............................     6
Advisory Committee Statement.....................................     6
Applicability to Legislative Branch..............................     6
Section-by-Section Analysis of the Legislation...................     6
Changes in Existing Law Made by the Bill, as Reported............     7

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Prevent Trafficking in Cultural 
Property Act''.

SEC. 2. DEFINITION.

  In this Act, the term ``cultural property'' includes property covered 
under--
          (1) Article 1 of the Hague Convention for the Protection of 
        Cultural Property in the Event of Armed Conflict, adopted at 
        the Hague on May 14, 1954 (Treaty 13 Doc. 106-1(A)); or
          (2) Article 1 of the Convention on the Means of Prohibiting 
        and Preventing the Illicit Import, Export, and Transfer of 
        Ownership of Cultural Property, adopted by the United Nations 
        Educational, Scientific and Cultural Organization (``UNESCO'') 
        on November 14, 1970.

SEC. 3. STATEMENT OF POLICY.

  It shall be the policy of the United States to--
          (1) ensure the components of the Department of Homeland 
        Security enhance and unify efforts to--
                  (A) interdict, detain, seize, and investigate 
                cultural property illegally imported into the United 
                States;
                  (B) disrupt and dismantle smuggling and trafficking 
                networks and transnational criminal organizations 
                engaged in, conspiring to engage in, or facilitating 
                illegal trade in cultural property, including stolen 
                antiquities used to finance terrorism; and
                  (C) support Offices of United States Attorneys in 
                prosecuting persons engaged in, conspiring to engage 
                in, or facilitating illegal trade in cultural property; 
                and
          (2) protect cultural property pursuant to its obligations 
        under the 1954 Hague Convention for the Protection of Cultural 
        Property in the Event of Armed Conflict, the 1970 UNESCO 
        Convention on the Means of Prohibiting and Preventing the 
        Illicit Import, Export, and Transfer of Ownership of Cultural 
        Property, and the Convention on Cultural Property 
        Implementation Act (19 U.S.C. 2601-2613).

SEC. 4. ACTIVITIES OF THE DEPARTMENT OF HOMELAND SECURITY.

  The Commissioner of U.S. Customs and Border Protection and the 
Director of U.S. Immigration and Customs Enforcement shall--
          (1) designate a principal coordinator within U.S. Customs and 
        Border Protection and U.S. Immigration and Customs Enforcement, 
        respectively, to direct, manage, coordinate, and update their 
        respective policies and procedures, as well as conduct 
        interagency communications, regarding illegally imported 
        cultural property;
          (2) update existing directives, regulations, rules, and 
        memoranda of understanding of U.S. Customs and Border 
        Protection and U.S. Immigration and Customs Enforcement, 
        respectively, and, if necessary, devise additional directives, 
        regulations, rules, and memoranda of understanding, relating to 
        policies and procedures on the illegal importation of cultural 
        property in order to--
                  (A) reflect changes in cultural property law, 
                including changes and updates to relevant treaties, 
                bilateral agreements, statutes, regulations, and case 
                law that occurred subsequent to Customs Directive No. 
                5230-015, ``Customs Directive on Detention and Seizure 
                of Cultural Property'', dated April 18, 1991;
                  (B) emphasize investigating, and providing support 
                for investigations and prosecutions, of persons engaged 
                in, conspiring to engage in, or facilitating the 
                illegal importation of cultural property, including 
                smugglers, dealers, buyers, money launderers, and any 
                other appropriate parties; and
                  (C) provide for communication and coordination 
                between relevant U.S. Customs and Border Protection and 
                U.S. Immigration and Customs Enforcement offices, 
                respectively, in investigating and supporting 
                prosecutions of persons engaged in, conspiring to 
                engage in, or facilitating the illegal importation of 
                cultural property; and
          (3) ensure relevant personnel within U.S. Customs and Border 
        Protection and U.S. Immigration and Customs Enforcement, 
        respectively, receive sufficient training in--
                  (A) relevant cultural property laws;
                  (B) the identification of cultural property that is 
                at greatest risk of looting and trafficking; and
                  (C) methods of interdiction and investigative 
                techniques specifically related to illegal trade in 
                cultural property.

SEC. 5. ROLE OF THE SMITHSONIAN INSTITUTION.

  The Secretary of Homeland Security shall ensure that the heads of all 
components of the Department of Homeland Security involved in cultural 
property protection activities are authorized to enter into agreements 
or memoranda of understanding with the Smithsonian Institution to 
temporarily engage personnel from the Smithsonian Institution for the 
purposes of furthering such cultural property protection activities.

SEC. 6. REPORT.

  Not later than one year after the date of the enactment of this Act 
and three years thereafter, the Commissioner of U.S. Customs and Border 
Protection and the Commissioner of U.S. Immigration and Customs 
Enforcement shall jointly submit to the Committee on Homeland Security 
and the Committee on Ways and Means of the House of Representatives and 
the Committee on Homeland Security and Governmental Affairs and the 
Committee on Finance of the Senate a report on--
          (1) the progress of the implementation of this Act; and
          (2) other actions to enhance and unify efforts to interdict, 
        detain, seize, and investigate cultural property illegally 
        imported into the United States, and investigate, disrupt, and 
        dismantle smuggling and trafficking networks engaged in, 
        conspiring to engage in, or facilitating the illegal 
        importation of cultural property.

                          Purpose and Summary

    H.R. 2285 requires the U.S. Customs and Border Protection 
(CBP) and U.S. Immigration and Customs Enforcement (ICE) to 
interdict, detain, seize, and investigate cultural property 
that was illegally imported into the United States and to 
disrupt and dismantle smuggling and trafficking networks that 
are engaged in the illegal trade of cultural property.
    Under the bill, the heads of CBP and ICE must designate 
principal coordinators to direct, manage, and coordinate 
functions related to the illegal importation of cultural 
property. It also ensures that all CBP and ICE personnel 
involved in interdicting and investigating the illegal 
importation of cultural property receive sufficient training 
related to illegal trade of cultural property.

                  Background and Need for Legislation

    Proceeds from antiquity smuggling and other articles of 
cultural heritage are being stolen and sold to fund terrorist 
activities and bolster their financial networks. Presently, 
these items are being looted and sold on the black markets by 
groups like the Islamic State of Iraq and the Levant (ISIL) to 
fund their nefarious activities.
    The United States Government is responsible for detecting 
and interdicting such objects in the U.S. and prosecuting those 
who participate in such terrorist financing activities. 
Unfortunately, a lack of trained officials, resources, and 
coordination between agencies has resulted in a significant 
uptick of this trade into the United States--with some 
estimates indicating that the dollar value of antiquities 
arriving in the U.S. from places like Iraq and Syria have risen 
by as much as 600 percent.
    This legislation would result in the identification of 
these items at U.S. ports of entry through mandated cultural 
property trainings, improved detection methods, and focused 
coordination between agencies to dismantle the insidious 
networks of traffickers.

                                Hearings

    No hearings were held on H.R. 2285.

                        Committee Consideration

    The Committee met on November 4, 2015, to consider H.R. 
2285, and ordered the measure to be reported to the House with 
a favorable recommendation, amended, by voice vote. The 
Committee took the following actions:
    The following amendments were offered:
 An Amendment in the Nature of a Substitute offered by Mr. 
Keating (#1); was AGREED TO by voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto.
    No recorded votes were requested during consideration of 
H.R.2285.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has held oversight 
hearings and made findings that are reflected in this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
2285, the Prevent Trafficking in Cultural Property Act, would 
result in no new or increased budget authority, entitlement 
authority, or tax expenditures or revenues.

                  Congressional Budget Office Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, December 9, 2015.
Hon. Michael McCaul,
Chairman, Committee on Homeland Security,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2285, the Prevent 
Trafficking in Cultural Property Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 2285--Prevent Trafficking in Cultural Property Act

    H.R. 2285 would require the Department of Homeland Security 
(DHS) to designate certain officials to coordinate department 
efforts to protect international cultural property and develop 
strategies to reduce the illegal trade in such property. The 
legislation also would authorize DHS agencies to enter into 
agreements with the Smithsonian Institution for the temporary 
use of the institution's staff. Information from DHS indicates 
that many of the bill's requirements are already being met; 
thus, CBO estimates that implementing H.R. 2285 would cost less 
than $500,000 annually. Such spending would be subject to the 
availability of appropriated funds.
    Because enacting the legislation would not affect direct 
spending or revenues, pay-as-you-go procedures do not apply. 
CBO estimates that enacting H.R. 2285 would not increase net 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2026.
    H.R. 2285 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act.
    On May 6, 2015, CBO transmitted a cost estimate for H.R. 
1493, the Protect and Preserve International Cultural Property 
Act, as ordered reported by the House Committee on Foreign 
Affairs on April 23, 2015. The bills are similar and both would 
require efforts to protect international cultural property; 
H.R. 2285 would affect the Department of State and H.R. 2285 
would affect DHS. CBO's estimates of the budgetary effects are 
similar for both bills.
    The CBO staff contact for this estimate is Mark Grabowicz. 
The estimate was approved by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, H.R. 2285 contains the following 
general performance goals and objectives, including outcome 
related goals and objectives authorized.
    The performance goals and objectives for H.R. 2285 are to 
establish a program within the Department of Homeland Security 
to stop the trafficking of cultural property and antiquities 
and to cut off a major funding source for ISIL and other 
terrorist and criminal organizations.

                      Duplicative Federal Programs

    Pursuant to clause 3(c) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that H.R. 2285 
does not contain any provision that establishes or reauthorizes 
a program known to be duplicative of another Federal program.

   Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    In compliance with rule XXI of the Rules of the House of 
Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the Rule 
XXI.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                        Preemption Clarification

    In compliance with section 423 of the Congressional Budget 
Act of 1974, requiring the report of any Committee on a bill or 
joint resolution to include a statement on the extent to which 
the bill or joint resolution is intended to preempt State, 
local, or Tribal law, the Committee finds that H.R. 2285 does 
not preempt any State, local, or Tribal law.

                  Disclosure of Directed Rule Makings

    The Committee estimates that H.R. 2285 would require no 
directed rule makings.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1.   Short Title.

    This section provides that this bill may be cited as the 
``Prevent Trafficking in Cultural Property Act''.

Sec. 2.   Definitions.

    Section 2 provides a definition for the term ``cultural 
property.''

Sec. 3.   Statement of Policy.

    This section outlines the policy of the United States that 
DHS, specifically CBP and ICE, must enhance and unify their 
efforts to interdict, detain, seize, and investigate cultural 
property illegally imported into the United States. DHS shall 
also disrupt and dismantle transnational smuggling and criminal 
organizations engaged in the illegal trade of cultural property 
and support offices of the U.S. Attorney in prosecuting persons 
and organizations that are engaged in, or conspiring to 
facilitate, illegal trade in cultural property. The Committee 
believes that it is important to cut off the revenue streams of 
ISIL and efforts must be taken to stop the import and sale of 
stolen antiquities.

Sec. 4.   Activities of the Department of Homeland Security.

    The Committee recognizes that enforcing cultural 
antiquities laws requires unique skill sets and expertise as 
well as policies designed specifically to identify and 
coordinate enforcement efforts. To that end, this section 
directs CBP and ICE to each designate a principal coordinator 
or group of personnel to direct, manage, coordinate, and update 
their respective policies and procedures as well as to update 
all administrative directives and functions related to the 
illegal importation of cultural property.
    This section also directs CBP and ICE to update relevant 
directives, regulations, rules and memorandums of understanding 
and, if necessary, create new policies and procedures, to 
reflect changes in cultural policy law, emphasize the 
investigation of illegal importation of cultural property, and 
provide for communication between CBP and ICE in investigating 
illegal importation of cultural property.
    The section also requires CBP and ICE to ensure that all 
personnel involved in interdicting and investigating the 
illegal importation of cultural property receive sufficient 
training in relevant cultural property laws, the identification 
of cultural property, and methods of interdiction and 
investigative techniques specifically related to illegal trade 
in cultural property.

Sec. 5.   Role of the Smithsonian Institution.

    This section requires DHS to ensure that the heads of all 
components involved in cultural property protection activities 
are authorized to enter into agreements or memoranda of 
understanding to temporarily engage personnel from the 
Smithsonian Institution to further cultural property protection 
activities. The Committee believes that DHS should coordinate 
with experts in cultural property to ensure that such property 
is properly identified and handled when interdicted and seized 
in the United States. The Committee, therefore, believes that 
DHS must establish and maintain a positive working relationship 
with the Smithsonian Institution which employs many of the 
federal government's experts in cultural property and 
antiquities.

Sec. 6.   Report.

    This section requires the Commissioner of CBP and the 
Director of ICE to submit a joint report to Congress, not later 
than one year after the enactment of this Act and three years 
thereafter, that highlights the progress of the implementation 
of the Act and outlines the Departments other actions 
previously described in the Act.

         Changes in Existing Law Made by the Bill, as Reported

    As reported, H.R. 2285 makes no changes to existing law.

                                  [all]