H.R. 10447

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10447 Introduced in House (IH)]

<DOC>

118th CONGRESS
2d Session
H. R. 10447

To authorize sanctions relating to the production and distribution of 
illicit synthetic narcotics by the People's Republic of China.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

December 17, 2024

Mr. Auchincloss (for himself, Mr. Newhouse, Mr. Krishnamoorthi, Mr. 
Moolenaar, Mr. Torres of New York, Mr. Khanna, Mr. Johnson of South 
Dakota, Mr. Dunn of Florida, and Mrs. Steel) introduced the following 
bill; which was referred to the Committee on Foreign Affairs, and in 
addition to the Committees on Financial Services, the Judiciary, and 
Oversight and Accountability, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To authorize sanctions relating to the production and distribution of 
illicit synthetic narcotics by the People's Republic of China.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

SEC. 2. CODIFICATION OF EXECUTIVE ORDER 14059.

United States sanctions provided for in Executive Order 14059 (86 
Fed. Reg. 71549; Imposing Sanctions on Foreign Persons Involved in the 
Global Illicit Drug Trade), as in effect on the day before the date of 
the enactment of this Act, shall remain in effect and continue to 
apply.

SEC. 3. AUTHORIZATION OF SANCTIONS.

(a) In General.--On and after the date that is 180 days after the 
date of the enactment of this Act, the President is authorized to 
impose the sanction described in subsection (b) with respect to a 
foreign person if the President determines that the person--
(1) has engaged in, or attempted to engage in, activities 
or transactions in the People's Republic of China, including in 
Hong Kong and Macau, or with respect to persons domiciled in, 
organized under the laws of, or with their principal place of 
business in such jurisdictions, that have contributed to, or 
pose a significant risk of contributing to, the international 
proliferation of illicit synthetic narcotics or their means of 
production;
(2) has knowingly or with reckless disregard has received 
any property or interest in property that--
(A) constitutes or is derived from proceeds of 
activities or transactions in the People's Republic of 
China, including in Hong Kong and Macau, or with 
respect to persons domiciled in, organized under the 
laws of, or with their principal place of business in 
such jurisdictions, that have materially contributed 
to, or pose a significant risk of materially 
contributing to, the international proliferation of 
illicit synthetic narcotics or their means of 
production; or
(B) was used or may have been intended to be used 
to commit or to facilitate activities or transactions 
in the People's Republic of China, including in Hong 
Kong and Macau, or with respect to persons domiciled 
in, organized under the laws of, or with their 
principal place of business in such jurisdictions, that 
have materially contributed to, or pose a significant 
risk of materially contributing to, the international 
proliferation of illicit synthetic narcotics or their 
means of production;
(3) is a PRC owned or operated port or ship that, knowingly 
or with reckless disregard, facilitates the shipment and 
transportation of illicit synthetic narcotics or their 
precursors (including in such circumstances where those 
precursors are improperly labeled during the customs process);
(4) is a PRC entity that produces illicit synthetic 
narcotics or their precursors and, knowingly or with reckless 
disregard, sells those precursors to persons involved in the 
proliferation of illicit synthetic narcotics;
(5) is a PRC online marketplace that, knowingly or with 
reckless disregard, facilitates the sale of, exchange of, 
shipment of, transshipment of, conveyance of, or payment for 
illicit synthetic narcotics;
(6) is a covered PRC government entity;
(7) is a PRC entity that knowingly or with reckless 
disregard, provides material support related to illicit 
synthetic narcotics to a covered PRC government entity;
(8) has established an entity that engages in, has engaged 
in, or is designed to engage in evading sanctions that would 
otherwise be imposed pursuant to this Act; or
(9) is acting directly or indirectly for or on behalf of a 
person referred to in paragraphs (1) through (8).
(b) Sanction Described.--
(1) In general.--The sanction described in this subsection 
is the exercise all of the powers granted to the President 
under the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.) to the extent necessary to block and 
prohibit all transactions in property and interests in property 
of a foreign person if such property or interests in property 
are in the United States, come within the United States, or are 
or come within the possession or control of a United States 
person.
(2) Implementation.--The President may exercise the 
authorities provided to the President under sections 203 and 
205 of the International Emergency Economic Powers Act (50 
U.S.C. 1702 and 1704) to the extent necessary to carry out this 
section.
(3) Penalties.--The penalties provided for in subsections 
(b) and (c) of section 206 of the International Emergency 
Economic Powers Act (50 U.S.C. 1705) shall apply to any person 
who violates, attempts to violate, conspires to violate, or 
causes a violation of any prohibition of this section, or an 
order or regulation prescribed under this section, to the same 
extent that such penalties apply to a person that commits an 
unlawful act described in subsection section 206(a) of such Act 
(50 U.S.C. 1705(a)).
(4) Exceptions.--
(A) Exception for intelligence and law enforcement 
actions.--Sanctions under this section shall not apply 
with respect to--
(i) 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
(ii) any authorized intelligence or law 
enforcement activities of the United States.
(B) Exception relating to importation of goods.--
(i) In general.--The authorities and 
requirements to impose sanctions authorized 
under this section shall not include the 
authority or requirement to impose sanctions on 
the importation of goods.
(ii) Good defined.--In this subparagraph, 
the term ``good'' means any article, natural or 
manmade substance, material, supply or 
manufactured product, including inspection and 
test equipment, and excluding technical data.
(c) Waiver.--The President may waive the application of sanctions 
under this section with respect to a foreign person for renewable 
periods of not more than 180 days each if the President determines and 
reports to Congress that such a waiver is in national interests of the 
United States.
(d) Rule of Construction.--Nothing in this section may be construed 
to limit the authority of the President to designate or sanction 
persons pursuant to an applicable Executive order or a Federal statute, 
including the International Emergency Economic Powers Act (50 U.S.C. 
1701 et seq.).
(e) Consideration of Certain Information in Imposing Sanctions.--In 
determining whether to impose sanctions under subsection (a), the 
President shall consider--
(1) information provided jointly by the chairperson and 
ranking member of each of the appropriate congressional 
committees; and
(2) credible information obtained by other countries and 
nongovernmental organizations that monitor violations of human 
rights.
(f) Requests by Appropriate Congressional Committees.--
(1) In general.--Not later than 120 days after receiving a 
request that meets the requirements of paragraph (2) with 
respect to whether a foreign person has engaged in an activity 
described in subsection (a), the President shall--
(A) determine if that person has engaged in such an 
activity; and
(B) submit a classified or unclassified report to 
the chairperson and ranking member of the committee or 
committees that submitted the request with respect to 
that determination that includes--
(i) a statement of whether or not the 
President imposed or intends to impose 
sanctions with respect to the person; and
(ii) if the President imposed or intends to 
impose sanctions, a description of those 
sanctions.
(2) Requirements.--A request under paragraph (1) with 
respect to whether a foreign person has engaged in an activity 
described in subsection (a) shall be submitted to the President 
in writing jointly by the chairperson and ranking member of one 
of the appropriate congressional committees.

SEC. 4. FINANCIAL SANCTIONS.

The Secretary of the Treasury may, in consultation with the 
Secretary of State, prohibit the opening of, or impose strict 
conditions on the maintenance of, correspondent accounts or payable-
through accounts in the United States by a foreign financial 
institution that the President determines has, on or after the date of 
the enactment of this Act, knowingly conducted or facilitated a 
significant transaction or transactions on behalf of a foreign person 
described in section 3(a).

SEC. 5. DEFINITIONS.

In this Act--
(1) the term ``appropriate congressional committees'' 
means--
(A) the Committee on Banking, Housing, and Urban 
Affairs; and
(B) the Committee on Foreign Affairs and the Select 
Committee on Strategic Competition between the United 
States and the Chinese Communist Party of the House of 
Representatives;
(2) the term ``covered PRC government entity'' includes--
(A) the PRC government, a PRC government official, 
or any entity or instrumentality thereof, that is 
identified by the United States Government as knowingly 
or recklessly facilitating the flow of illicit 
synthetic narcotics into the United States or otherwise 
providing material support to a foreign person 
described in section 3(a);
(B) any subsidiary, affiliate, or successor of an 
entity described in subparagraph (A); and
(C) any person owned or controlled by, or that 
provides material support to or for, or receives 
materially support from an entity described in 
subparagraph (A);
(3) the term ``foreign person'' means a person that is not 
a United States person;
(4) the term ``illicit synthetic narcotics'' means--
(A) controlled substances, as such term is defined 
in section 102(6) of the Controlled Substances Act (21 
U.S.C. 802(6)), with the exception of--
(i) substances of natural origins; and
(ii) medications that are lawful under the 
laws of the United States and the Drug 
Enforcement Administration has provided an 
import permit to the importing organization for 
the import of such medication;
(B) listed chemicals, as such term is defined in 
section 102(33) of the Controlled Substances Act (21 
U.S.C. 802(33)); and
(C) active pharmaceutical ingredients or chemicals 
that are used in the production of controlled 
substances described in subparagraphs (A) and (B);
(5) 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;
(6) the term ``PRC'' means the People's Republic of China; 
and
(7) the term ``United States person'' means any United 
States citizen, permanent resident alien, an 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 any person in the United States.
<all>