Strengthening Sanctions on Fentanyl Traffickers Act of 2023

II 118TH CONGRESS 1ST SESSION S. 2059 To impose sanctions with respect to pharmaceutical companies of the People’s Republic of China and certain cartels that traffic fentanyl into the United States, and for other purposes. IN THE SENATE OF THE UNITED STATES JUNE 20, 2023 Mr. MENENDEZ introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To impose sanctions with respect to pharmaceutical compa- nies of the People’s Republic of China and certain cartels that traffic fentanyl into the United States, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Strengthening Sanc- 4 tions on Fentanyl Traffickers Act of 2023’’. 5 VerDate Sep 11 2014 06:06 Jul 13, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2059.IS S2059 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •S 2059 IS SEC. 2. PRIORITIZATION OF IDENTIFICATION OF PERSONS 1 FROM THE PEOPLE’S REPUBLIC OF CHINA. 2 Section 7211 of the Fentanyl Sanctions Act (21 3 U.S.C. 2311) is amended— 4 (1) in subsection (a)— 5 (A) by redesignating paragraphs (3) and 6 (4) as paragraphs (4) and (5), respectively; and 7 (B) by inserting after paragraph (2) the 8 following new paragraph (3): 9 ‘‘(3) PRIORITIZATION.— 10 ‘‘(A) IN GENERAL.—In preparing the re- 11 port required by paragraph (1), the President 12 shall prioritize the identification of persons of 13 the People’s Republic of China involved in the 14 shipment of fentanyl, fentanyl analogues, 15 fentanyl precursors, precursors for fentanyl 16 analogues, pre-precursors for fentanyl and 17 fentanyl analogues, and equipment for the man- 18 ufacturing of fentanyl and fentanyl-laced coun- 19 terfeit pills to Mexico or any other country that 20 is involved in the production of fentanyl that is 21 trafficked into the United States, including— 22 ‘‘(i) any entity involved in the produc- 23 tion of pharmaceuticals; and 24 ‘‘(ii) any person that is acting on be- 25 half of any such entity. 26 VerDate Sep 11 2014 06:06 Jul 13, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2059.IS S2059 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •S 2059 IS ‘‘(B) TERMINATION OF PRIORITIZATION.— 1 ‘‘(i) The President shall continue the 2 prioritization described in subparagraph 3 (A) until the People’s Republic of China is 4 no longer the primary source for the ship- 5 ment of fentanyl, fentanyl analogues, 6 fentanyl precursors, precursors for fentanyl 7 analogues, pre-precursors for fentanyl and 8 fentanyl analogues, and equipment for the 9 manufacturing of fentanyl and fentanyl- 10 laced counterfeit pills to Mexico or any 11 other country that is involved in the pro- 12 duction of fentanyl that is trafficked into 13 the United States; and 14 ‘‘(ii) the President so certifies to the 15 appropriate congressional committees. 16 ‘‘(C) PERSON OF THE PEOPLE’S REPUBLIC 17 OF CHINA DEFINED.—In this section, the term 18 ‘person of the People’s Republic of China’ 19 means— 20 ‘‘(i) an individual who is a citizen or 21 national of the People’s Republic of China; 22 or 23 ‘‘(ii) an entity organized under the 24 laws of the People’s Republic of China or 25 VerDate Sep 11 2014 06:06 Jul 13, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2059.IS S2059 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •S 2059 IS otherwise subject to the jurisdiction of the 1 Government of the People’s Republic of 2 China.’’; and 3 (2) in subsection (c), by striking ‘‘the date that 4 is 5 years after such date of enactment’’ and insert- 5 ing ‘‘December 31, 2030’’. 6 SEC. 3. SANCTIONS WITH RESPECT TO SIGNIFICANT 7 FENTANYL TRAFFICKING ORGANIZATIONS. 8 (a) IN GENERAL.—United States sanctions imposed 9 on the transnational criminal organizations listed in sub- 10 section (b) provided for in the Foreign Narcotics Kingpin 11 Designation Act (21 U.S.C. 1901 et seq.), as in effect on 12 the date of the enactment of this Act, shall remain in ef- 13 fect except as provided in subsection (c). 14 (b) TRANSNATIONAL CRIMINAL ORGANIZATIONS.— 15 The transnational criminal organizations listed in this 16 subsection are the following: 17 (1) The Sinaloa Cartel. 18 (2) The Jalisco New Generation Cartel. 19 (3) The Beltran-Leyva Organization. 20 (4) Los Zetas. 21 (5) The Guerreros Unidos. 22 (6) The Gulf Cartel. 23 (7) The Juarez Cartel. 24 (8) La Familia Michocana. 25 VerDate Sep 11 2014 06:06 Jul 13, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2059.IS S2059 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •S 2059 IS (9) Los Rojos. 1 (c) TERMINATION OF CERTAIN SANCTIONS.—The 2 President may terminate the application of any sanctions 3 described in subsection (a) with respect to any 4 transnational criminal organization listed in subsection (b) 5 if the President submits to the appropriate congressional 6 committees a notice that such transnational criminal orga- 7 nization is not engaging in the activity that was the basis 8 for such sanctions. 9 (d) APPROPRIATE CONGRESSIONAL COMMITTEES 10 DEFINED.—In this section, the term ‘‘appropriate con- 11 gressional committees’’ means— 12 (1) the Committee on Foreign Relations and 13 the Committee on Banking, Housing, and Urban Af- 14 fairs of the Senate; and 15 (2) the Committee on Foreign Affairs and the 16 Committee on Financial Services of the House of 17 Representatives. 18 SEC. 4. IMPOSITION OF SANCTIONS WITH RESPECT TO FOR- 19 EIGN PERSONS INVOLVED IN GLOBAL ILLICIT 20 DRUG TRADE. 21 (a) IN GENERAL.—The President may impose any of 22 the sanctions described in subsection (b) with respect to 23 any foreign person determined by the President— 24 VerDate Sep 11 2014 06:06 Jul 13, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2059.IS S2059 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •S 2059 IS (1) to have engaged in, or attempted to engage 1 in, activities or transactions that have materially 2 contributed to, or pose a significant risk of materi- 3 ally contributing to, the international trafficking of 4 illicit drugs or their means of production; 5 (2) to have knowingly received any property or 6 interest in property that the foreign person knows— 7 (A) constitutes or is derived from proceeds 8 of activities or transactions described in para- 9 graph (1); or 10 (B) was used or intended to be used to 11 commit or to facilitate such activities or trans- 12 actions; 13 (3) to have provided, or attempted to provide, 14 financial, material, or technological support for, or 15 goods or services in support of— 16 (A) any activity or transaction described in 17 paragraph (1); or 18 (B) any sanctioned person; 19 (4) to be a leader or official of any sanctioned 20 person or of any foreign person that has engaged in 21 any activity or transaction described in paragraph 22 (1); or 23 VerDate Sep 11 2014 06:06 Jul 13, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2059.IS S2059 pbinns on DSKJLVW7X2PROD with $$_JOB 7 •S 2059 IS (5) to be owned, controlled, or directed by, or 1 to have acted or purported to act for or on behalf 2 of, directly or indirectly, any sanctioned person. 3 (b) SANCTIONS DESCRIBED.—The sanctions de- 4 scribed in this subsection are the following: 5 (1) BLOCKING OF PROPERTY.—The President 6 may, pursuant to the International Emergency Eco- 7 nomic Powers Act (50 U.S.C. 1701 et seq.), block 8 and prohibit all transactions in property and inter- 9 ests in property of the sanctioned person if such 10 property and interests in property are in the United 11 States, come within the United States, or are or 12 come within the possession or control of a United 13 States person. 14 (2) BANKING TRANSACTIONS.—The President 15 may prohibit any transfers of credit or payments be- 16 tween financial institutions or by, through, or to any 17 financial institution, to the extent that such trans- 18 fers or payments are subject to the jurisdiction of 19 the United States and involve any interest of the 20 sanctioned person. 21 (3) LOANS FROM UNITED STATES FINANCIAL 22 INSTITUTIONS.—The President may prohibit any 23 United States financial institution from making 24 loans or providing credit to the sanctioned person. 25 VerDate Sep 11 2014 06:06 Jul 13, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S2059.IS S2059 pbinns on DSKJLVW7X2PROD with $$_JOB 8 •S 2059 IS (4) FOREIGN EXCHANGE TRANSACTIONS.—The 1 President may prohibit any transactions in foreign 2 exchange that are subject to the jurisdiction of the 3 United States and in which the sanctioned person 4 has any interest. 5 (5) PROHIBITION ON INVESTMENT IN EQUITY 6 OR DEBT OF SANCTIONED PERSON.—The President 7 may prohibit any United States person from invest- 8 ing in or purchasing significant amounts of equity or 9 debt instruments of the sanctioned person. 10 (6) PROHIBITIONS ON FINANCIAL INSTITU- 11 TIONS.—The President may direct that the following 12 prohibitions be imposed with respect to a sanctioned 13 person that is a financial institution: 14 (A) PROHIBITION ON DESIGNATION AS 15 PRIMARY DEALER.—Neither the Board of Gov- 16 ernors of the Federal Reserve System nor the 17 Federal Reserve Bank of New York may des- 18 ignate, or permit the continuation of any prior 19 designation of, the financial institution as a pri- 20 mary dealer in United States Government debt 21 instruments. 22 (B) PROHIBITION ON SERVICE AS A RE- 23 POSITORY OF GOVERNMENT FUNDS.—The fi- 24 nancial institution may not serve as agent of 25 VerDate Sep 11 2014 06:06 Jul 13, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S2059.IS S2059 pbinns on DSKJLVW7X2PROD with $$_JOB 9 •S 2059 IS the United States Government or serve as re- 1 pository for United States Government funds. 2 (7) PROCUREMENT BAN.—The President may 3 direct that the United States Government may not 4 procure, or enter into any contract for the procure- 5 ment of, any goods or services from the sanctioned 6 person. 7 (8) EXCLUSION OF CORPORATE OFFICERS.— 8 The President may direct the Secretary of State to 9 deny a visa to, and the Secretary of Homeland Secu- 10 rity to exclude from the United States, any alien 11 that the President determines is a leader, official, 12 senior executive officer, or director of, or a share- 13 holder with a controlling interest in, the sanctioned 14 person. 15 (9) SANCTIONS ON PRINCIPAL EXECUTIVE OF- 16 FICERS.—The President may impose on the prin- 17 cipal executive officer or officers of the sanctioned 18 person, or on individuals performing similar func- 19 tions and with similar authorities as such officer or 20 officers, any of the sanctions described in para- 21 graphs (1) through (8) that are applicable. 22 (c) INADMISSIBILITY OF CERTAIN SANCTIONED PER- 23 SONS.— 24 VerDate Sep 11 2014 06:06 Jul 13, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S2059.IS S2059 pbinns on DSKJLVW7X2PROD with $$_JOB 10 •S 2059 IS (1) VISAS, ADMISSION, OR PAROLE.—Except as 1 provided by paragraph (3), an alien with respect to 2 whom the President imposed sanctions under para- 3 graph (1) or (8) of subsection (b) shall be— 4 (A) inadmissible to the United States; 5 (B) ineligible to receive a visa or other doc- 6 umentation to enter the United States; and 7 (C) otherwise ineligible to be admitted or 8 paroled into the United States or to receive any 9 other benefit under the Immigration and Na- 10 tionality Act (8 U.S.C. 1101 et seq.). 11 (2) CURRENT VISAS REVOKED.— 12 (A) IN GENERAL.—The visa or other entry 13 documentation of any alien described in para- 14 graph (1) is subject to revocation regardless of 15 the date on which the visa or other entry docu- 16 mentation is or was issued. 17 (B) IMMEDIATE EFFECT.—A revocation 18 under subparagraph (A) shall— 19 (i) take effect immediately; and 20 (ii) cancel any other valid visa or 21 entry documentation that is in the posses- 22 sion of the alien. 23 (3) EXCEPTIONS.—Paragraphs (1) and (2) 24 shall not apply with respect to the admission of an 25 VerDate Sep 11 2014 06:06 Jul 13, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S2059.IS S2059 pbinns on DSKJLVW7X2PROD with $$_JOB 11 •S 2059 IS alien described in paragraph (1) if the President de- 1 termines that the admission of the alien would not 2 be contrary to the interests of the United States, in- 3 cluding if the Secretary of State or the Secretary of 4 Homeland Security, as appropriate, determines, 5 based on a recommendation of the Attorney General, 6 that the admission of the alien would further impor- 7 tant United States law enforcement objectives. 8 (d) IMPLEMENTATION.—The President may exercise 9 all authorities provided under sections 203 and 205 of the 10 International Emergency Economic Powers Act (50 11 U.S.C. 1702 and 1704) to carry out this section. 12 (e) EXCEPTION RELATING TO IMPORTATION OF 13 GOODS.— 14 (1) IN GENERAL.—The authorities and require- 15 ments to impose sanctions authorized under this Act 16 shall not include the authority or a requirement to 17 impose sanctions on the importation of goods. 18 (2) GOOD DEFINED.—In this paragraph, the 19 term ‘‘good’’ means any article, natural or manmade 20 substance, material, supply or manufactured prod- 21 uct, including inspection and test equipment, and ex- 22 cluding technical data. 23 (f) DEFINITIONS.—In this section: 24 VerDate Sep 11 2014 06:06 Jul 13, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S2059.IS S2059 pbinns on DSKJLVW7X2PROD with $$_JOB 12 •S 2059 IS (1) ADMISSION; ADMITTED; ALIEN; LAWFULLY 1 ADMITTED FOR PERMANENT RESIDENCE; NA- 2 TIONAL.—The terms ‘‘admission’’, ‘‘admitted’’, 3 ‘‘alien’’, ‘‘lawfully admitted for permanent resi- 4 dence’’, and ‘‘national’’ have the meanings given 5 those terms in section 101 of the Immigration and 6 Nationality Act (8 U.S.C. 1101). 7 (2) ENTITY.—The term ‘‘entity’’ means a part- 8 nership, association, trust, joint venture, corpora- 9 tion, group, subgroup, or other organization. 10 (3) FINANCIAL INSTITUTION.—The term ‘‘fi- 11 nancial institution’’ includes— 12 (A) a depository institution (as defined in 13 section 3(c)(1) of the Federal Deposit Insur- 14 ance Act (12 U.S.C. 1813(c)(1))), including a 15 branch or agency of a foreign bank (as defined 16 in section 1(b)(7) of the International Banking 17 Act of 1978 (12 U.S.C. 3101(7))); 18 (B) a credit union; 19 (C) a securities firm, including a broker or 20 dealer; 21 (D) an insurance company, including an 22 agency or underwriter; and 23 (E) any other entity that provides financial 24 services. 25 VerDate Sep 11 2014 06:06 Jul 13, 2023 Jkt 039200 PO 00000 Frm 0 [Text truncated for display. 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