S. 860 — BUST FENTANYL Act

This section revises requirements for the International Narcotics Control Strategy Report by (1) changing the President's annual submission deadline to Congress to June 1 (from March 1); and (2) in the report's assessment of precursor chemical controls, striking references to pseudoephedrine and other specified chemicals and inserting "chemical precursors used in the production of methamphetamine that significantly affected the United States." (The report assesses counternarcotics performance by countries receiving U.S. international narcotics control and law enforcement assistance.)

This section directs the Secretary of State and the Attorney General to jointly submit to specified congressional committees (i.e., Senate and House Judiciary and Foreign Relations/Affairs Committees), not later than 180 days after enactment of this Act, (1) an unclassified written report with a classified annex describing U.S. efforts and plans to address fentanyl and synthetic opioid trafficking from the People's Republic of China (PRC), including precursor controls (e.g., 4-AP), PRC money laundering, the Trilateral Fentanyl Committee, the Global Coalition to Address Synthetic Drug Threats, supply chain shifts since November 15, 2023, and similar issues for India, Mexico, and other relevant countries; and (2) a classified briefing on U.S. outreach to establish Drug Enforcement Administration offices in Shanghai and Guangzhou, PRC, and new partnerships with PRC provincial authorities.

This section amends public reporting requirements under the Fentanyl Sanctions Act (21 U.S.C. 2311) by (1) requiring the President, in preparing the report identifying foreign opioid traffickers, to prioritize—to the greatest extent practicable—identification of persons of the People's Republic of China (i.e., citizens or nationals of China or entities organized under Chinese law or subject to Chinese government jurisdiction) involved in shipping fentanyl, fentanyl analogues, fentanyl precursors, precursors for fentanyl analogues, pre-precursors for fentanyl and fentanyl analogues, and equipment for manufacturing fentanyl and fentanyl-laced counterfeit pills to Mexico or other countries producing fentanyl trafficked into the United States—including pharmaceutical production entities and their agents—until the President certifies to congressional committees that China is no longer the primary source for such shipments; and (2) extending the applicable reporting period to December 31, 2030 (from five years after enactment).

This section expands the foreign persons subject to mandatory sanctions under the Fentanyl Sanctions Act (21 U.S.C. 2312)—five or more sanctions for entities and four or more for individuals—to include (1) those the President determines have knowingly engaged, on or after enactment of the BUST FENTANYL Act, in a significant activity or financial transaction materially contributing to opioid trafficking; and (2) those who receive proceeds from, provide significant financial/material/technological support to, or are owned, controlled, directed by, or knowingly act for such persons. (As background, the Fentanyl Sanctions Act requires sanctions on foreign opioid traffickers identified in an annual report and related persons to combat illicit opioid production, distribution, and precursor chemical supply.)

This section authorizes the President to impose one or more sanctions described in section 7213 of the Fentanyl Sanctions Act (21 U.S.C. 2313) on political subdivisions, agencies, or instrumentalities of foreign governments—including financial institutions owned or controlled by foreign governments—that the President determines have knowingly, on or after enactment, (1) engaged in a significant activity or significant financial transaction materially contributing to opioid trafficking or (2) provided financial, material, or technological support for such activity or transaction. The section further authorizes the President to impose sanctions described in section 7213(a)(6) of the Act on senior officials of such entities who knowingly facilitate those activities or transactions. (Thus, the provision extends sanctions authority under the Act—which previously excluded foreign governments—to state actors involved in synthetic opioid trafficking.)

This section revises the annual report on U.S. efforts to prevent methamphetamine smuggling from Mexico by requiring it to (1) identify significant source countries for methamphetamine that significantly affect the United States and (2) describe actions by those governments to combat diversion of relevant precursor chemicals and methamphetamine production and trafficking.