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


114th Congress   }                                    {  Rept. 114-380
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                    {         Part 2

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



 
              PREVENT TRAFFICKING IN CULTURAL PROPERTY ACT

                                _______
                                

 September 19, 2016.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Brady of Texas, from the Committee on Ways and Means, 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 Ways and Means, 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
  I. SUMMARY AND BACKGROUND...........................................3
          A. Purpose and Summary.................................     3
          B. Background and Need for Legislation.................     3
          C. Legislative History.................................     3
 II. EXPLANATION OF THE BILL..........................................4
III. VOTES OF THE COMMITTEE...........................................5
 IV. BUDGET EFFECTS OF THE BILL.......................................5
  V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE.......6
          A. Committee Oversight Findings and Recommendations....     6
          B. Statement of General Performance Goals and 
              Objectives.........................................     6
          C. Information Relating to Unfunded Mandates...........     7
          D. Congressional Earmarks, Limited Tax Benefits, and 
              Limited Tariff Benefits............................     7
          E. Duplication of Federal Programs.....................     7
          F. Disclosure of Directed Rule Makings.................     7
 VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED............7
VII. EXCHANGES OF LETTERS WITH ADDITIONAL COMMITTEES OF REFERRAL......8

    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 Ways and Means and 
the Committee on Homeland Security of the House of Representatives and 
the Committee on Finance and the Committee on Homeland Security and 
Governmental Affairs 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.

                       I. SUMMARY AND BACKGROUND


                         A. Purpose and Summary

    The bill, H.R. 2285, the ``Prevent Trafficking in Cultural 
Property Act,'' strengthens the enforcement efforts of 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.

                 B. Background and Need for Legislation

    H.R. 2285, the ``Prevent Trafficking in Cultural Property 
Act,'' improves the ability of the Department of Homeland 
Security to attack the Islamic State of Iraq and the Levant's 
(ISIL) fundraising efforts. ISIL and its network loot and 
smuggle antiquities from world heritage sights and other 
articles of cultural heritage and sell them on the black market 
to fund their terrorist activities.
    The Department of Homeland Security is responsible for 
detecting and interdicting such property in the United States. 
While resources are currently being dedicated to the training 
of personnel and coordination of efforts between CBP and ICE, 
illegal trade in cultural property continues to grow, and more 
tools are needed to address the problem. This legislation 
establishes a clear policy of the United States on the 
prevention of trafficking in cultural property and provides the 
United States Government with the tools it needs to effectively 
interdict, detain, seize, and investigate cultural property 
that was illegally imported into the United States, and to 
disrupt and dismantle smuggling and trafficking networks 
engaged in such activities.

                         C. Legislative History


Background

    H.R. 2285, the ``Prevent Trafficking in Cultural Property 
Act,'' was introduced on May 13, 2015, by Rep. Keating (D-MA) 
and referred to the Committee on Ways and Means, the Committee 
on Homeland Security, and the Committee on the Judiciary.

Committee hearings

    No hearings were held on H.R. 2285.

Committee action

    The Committee on Ways and Means marked up H.R. 2285, as 
amended by the Committee on Homeland Security, on September 14, 
2016. Chairman Brady offered an amendment in the nature of a 
substitute. H.R. 2285 was then ordered favorably reported to 
the House of Representatives, as amended, by a voice vote (with 
a quorum being present).

                      II. EXPLANATION OF THE BILL


                         Section 1: Short Title

    Section 1 entitles the bill the ``Prevent Trafficking in 
Cultural Property Act''.

                         Section 2: Definitions

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

                     Section 3: Statement of Policy

    Section 3 establishes the policy of the United States to 
ensure that U.S. Customs and Border Protection (CBP) and U.S. 
Immigration and Customs Enforcement (ICE) enhance and unify 
efforts to: (1) interdict, detain, seize, and investigate 
cultural property illegally imported into the United States; 
(2) disrupt and dismantle organizations engaged in the illegal 
trade in cultural property, including stolen antiquities used 
to finance terrorism; and (3) support U.S. Attorneys in 
prosecuting persons engaged in illegal trade in cultural 
property.
    Section 3 further establishes the policy of the United 
States to 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.

      Section 4: Activities of the Department of Homeland Security

    Section 4 requires CBP and ICE to: (1) designate principal 
coordinators to direct, manage, coordinate, and update policies 
and procedures regarding illegally imported cultural property; 
(2) update existing directives, regulations, rules, and 
memoranda of understanding, and, if necessary, to devise 
additional ones related to policies on the illegal importation 
of cultural property; and (3) ensure that relevant personnel 
receive sufficient training in cultural property laws, the 
identification of cultural property that is at risk of looting 
and trafficking, and methods of interdiction and investigative 
techniques.

             Section 5: Role of the Smithsonian Institution

    Section 5 requires the Secretary of Homeland Security to 
ensure that all components of DHS involved in cultural property 
protection are authorized to enter into agreements with the 
Smithsonian Institution to temporarily engage Smithsonian 
personnel to further cultural property protection activities.

                           Section 6: Report

    Section 6 requires CBP and ICE to submit a joint report to 
the House Committees on Ways and Means and Homeland Security 
and the Senate Committees on Finance and Homeland Security and 
Government Affairs on the implementation of this Act and other 
actions to enhance and unify efforts to interdict, detain, 
seize, and investigate cultural property illegally imported 
into the United States.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the vote of the Committee on Ways and Means in its 
consideration of H.R. 2285, the Prevent Trafficking in Cultural 
Property Act, on September 14, 2016.
    The bill, H.R. 2285 was ordered favorably reported to the 
House of Representatives as amended by a voice vote (with a 
quorum being present).

                     IV. BUDGET EFFECTS OF THE BILL


A. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    With respect to clause 3(c)(3) 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.

      B. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with cause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the CBP, the following statement by the CBO is 
provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 16, 2016.
Hon. Kevin Brady,
Chairman, Committee on Ways and Means,
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 the 
department's 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.
    Enacting the legislation would not affect direct spending 
or revenues; therefore, 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 2027.
    H.R. 2285 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act.
    On December 9, 2015, CBO transmitted a cost estimate for 
H.R. 2285, as ordered reported by the House Committee on 
Homeland Security on November 4, 2015. The two versions of the 
bill are similar and CBO's estimates of the budgetary effects 
are the same.
    The CBO staff contact for this estimate is Mark Grabowicz. 
The estimate was approved by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives (relating to oversight findings), 
the Committee advises that it was as a result of the 
Committee's review of the provisions of H.R. 2285 that the 
Committee concluded that it is appropriate to report the bill, 
as amended, favorably to the House of Representatives with the 
recommendation that the bill do pass.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
bill contains no measure that authorizes funding, so no 
statement of general performance goals and objectives for which 
any measure authorizes funding is required.

              C. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act (UMRA) of 1995 (Pub. L. No. 
104-4).
    The Committee states that there are no provisions that 
would impose a private sector mandate, as defined by UMRA, 
intergovernmental mandates or costs on state, local, or tribal 
governments.

  D. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill, and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                   E. Duplication of Federal Programs

    In compliance with Sec. 3(g)(2) of H. Res. 5 (114th 
Congress), the Committee states that no provision of the bill 
establishes or reauthorizes: (1) a program of the Federal 
Government known to be duplicative of another Federal program; 
(2) a program included in any report from the Government 
Accountability Office to Congress pursuant to section 21 of 
Public Law 111-139; or (3) a program related to a program 
identified in the most recent Catalog of Federal Domestic 
Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

                 F. Disclosure of Directed Rule Makings

    In compliance with Sec. 3(i) of H. Res. 5 (114th Congress), 
the following statement is made concerning directed rule 
makings: The Committee estimates that the bill requires no 
directed rule makings within the meaning of such section.

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

    In compliance with clause 3(e)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee advises that 
H.R. 2285 does not propose to repeal or amend any statute or 
part thereof.

    VII. EXCHANGES OF LETTERS WITH ADDITIONAL COMMITTEES OF REFERRAL



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