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69-006

110TH CONGRESS

REPT. 110-673

HOUSE OF REPRESENTATIVES

2d Session

Part I

--MERIDA INITIATIVE TO COMBAT ILLICIT NARCOTICS AND REDUCE ORGANIZED CRIME AUTHORIZATION ACT OF 2008

MAY 22, 2008- Ordered to be printed

Mr. BERMAN, from the Committee on Foreign Affairs, submitted the following

R E P O R T

together with

ADDITIONAL VIEWS

[To accompany H.R. 6028]

[Including cost estimate of the Congressional Budget Office]

TABLE OF CONTENTS Page
The Amendment 2
Summary 16
Background and Purpose for the Legislation 16
Hearings 18
Committee Consideration 19
Votes of the Committee 19
Committee Oversight Findings 19
New Budget Authority and Tax Expenditures 19
Congressional Budget Office Cost Estimate 20
Performance Goals and Objectives 22
Constitutional Authority Statement 22
New Advisory Committees 22
Congressional Accountability Act 22
Earmark Identification 22
Section-by-Section Analysis and Discussion 22
Additional Views 35

THE AMENDMENT

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

Sec. 1. Short title and table of contents.
Sec. 2. Definitions.
TITLE I--ASSISTANCE FOR MEXICO
Sec. 101. Findings.
Sec. 102. Declarations of policy.
Subtitle A--Law Enforcement and Security Assistance
Sec. 111. Purposes of assistance.
Sec. 112. Authorization of assistance.
Sec. 113. Activities supported.
Sec. 114. Limitation on assistance.
Sec. 115. Authorization of appropriations.
Subtitle B--Assistance to Enhance the Rule of Law and Strengthen Civilian Institutions
Sec. 121. Sense of Congress.
Sec. 122. Authorization of assistance.
Sec. 123. Activities supported.
Sec. 124. Authorization of appropriations.
TITLE II--ASSISTANCE FOR COUNTRIES OF CENTRAL AMERICA
Sec. 201. Findings.
Sec. 202. Declarations of policy.
Subtitle A--Law Enforcement and Security Assistance
Sec. 211. Purposes of assistance.
Sec. 212. Authorization of assistance.
Sec. 213. Activities supported.
Sec. 214. Limitation on assistance.
Sec. 215. Authorization of appropriations.
Subtitle B--Assistance to Enhance the Rule of Law and Strengthen Civilian Institutions
Sec. 221. Authorization of assistance.
Sec. 222. Activities supported.
Sec. 223. Authorization of appropriations.
TITLE III--ADMINISTRATIVE PROVISIONS
Sec. 301. Conditions on provision of assistance.
Sec. 302. Limitations on provision of assistance.
Sec. 303. Limitation on monitoring.
Sec. 304. Exemption from prohibition on assistance for law enforcement forces.
Sec. 305. Relationship to other authority.
Sec. 306. Rule of construction.
TITLE IV--SUPPORT ACTIVITIES IN THE UNITED STATES
Sec. 401. Report on reduction of drug demand in the United States.
Sec. 402. Reduction of southbound flow of illegal weapons.
Sec. 403. Reduction of southbound flow of illegal precursor chemicals and bulk-cash transfers.
Sec. 404. Report.
TITLE V--MISCELLANEOUS PROVISIONS
Sec. 501. Coordinator of United States Government Activities to Implement the Merida Initiative.
Sec. 502. Metrics and oversight mechanisms.
Sec. 503. Report.
Sec. 504. Sense of Congress.
Sec. 505. Sunset.

SEC. 2. DEFINITIONS.

TITLE I--ASSISTANCE FOR MEXICO

SEC. 101. FINDINGS.

SEC. 102. DECLARATIONS OF POLICY.

Subtitle A--Law Enforcement and Security Assistance

SEC. 111. PURPOSES OF ASSISTANCE.

SEC. 112. AUTHORIZATION OF ASSISTANCE.

SEC. 113. ACTIVITIES SUPPORTED.

SEC. 114. LIMITATION ON ASSISTANCE.

SEC. 115. AUTHORIZATION OF APPROPRIATIONS.

Subtitle B--Assistance to Enhance the Rule of Law and Strengthen Civilian Institutions

SEC. 121. SENSE OF CONGRESS.

SEC. 122. AUTHORIZATION OF ASSISTANCE.

SEC. 123. ACTIVITIES SUPPORTED.

SEC. 124. AUTHORIZATION OF APPROPRIATIONS.

TITLE II--ASSISTANCE FOR COUNTRIES OF CENTRAL AMERICA

SEC. 201. FINDINGS.

SEC. 202. DECLARATIONS OF POLICY.

Subtitle A--Law Enforcement and Security Assistance

SEC. 211. PURPOSES OF ASSISTANCE.

SEC. 212. AUTHORIZATION OF ASSISTANCE.

SEC. 213. ACTIVITIES SUPPORTED.

SEC. 214. LIMITATION ON ASSISTANCE.

SEC. 215. AUTHORIZATION OF APPROPRIATIONS.

Subtitle B--Assistance to Enhance the Rule of Law and Strengthen Civilian Institutions

SEC. 221. AUTHORIZATION OF ASSISTANCE.

SEC. 222. ACTIVITIES SUPPORTED.

SEC. 223. AUTHORIZATION OF APPROPRIATIONS.

TITLE III--ADMINISTRATIVE PROVISIONS

SEC. 301. CONDITIONS ON PROVISION OF ASSISTANCE.

SEC. 302. LIMITATIONS ON PROVISION OF ASSISTANCE.

SEC. 303. LIMITATION ON MONITORING.

SEC. 304. EXEMPTION FROM PROHIBITION ON ASSISTANCE FOR LAW ENFORCEMENT FORCES.

SEC. 305. RELATIONSHIP TO OTHER AUTHORITY.

SEC. 306. RULE OF CONSTRUCTION.

TITLE IV--SUPPORT ACTIVITIES IN THE UNITED STATES

SEC. 401. REPORT ON REDUCTION OF DRUG DEMAND IN THE UNITED STATES.

SEC. 402. REDUCTION OF SOUTHBOUND FLOW OF ILLEGAL WEAPONS.

SEC. 403. REDUCTION OF SOUTHBOUND FLOW OF ILLEGAL PRECURSOR CHEMICALS AND BULK-CASH TRANSFERS.

SEC. 404. REPORT.

TITLE V--MISCELLANEOUS PROVISIONS

SEC. 501. COORDINATOR OF UNITED STATES GOVERNMENT ACTIVITIES TO IMPLEMENT THE MERIDA INITIATIVE.

SEC. 502. METRICS AND OVERSIGHT MECHANISMS.

SEC. 503. REPORT.

SEC. 504. SENSE OF CONGRESS.

SEC. 505. SUNSET.

SUMMARY

H.R. 6028, the Merida Initiative to Combat Illicit Narcotics and Reduce Organized Crime Authorization Act of 2008 (the `Act'), provides nearly $1.6 billion over 3 years for the purposes of stopping illicit narcotics-related violence and crime in Mexico and Central America (as defined by this Act); modernizing the law enforcement agencies of recipient countries; and enhancing institution-building and rule of law in recipient countries. The Act concentrates considerable funding in the fragile Central American region. It contains significant human rights safeguards as well as end-use monitoring provisions for the equipment and training provided. It does not provide cash payments or budget support of any kind. It calls on the President to devise metrics up front to measure the success of the Act, and subsequently to regularly report on them to the Congress. It bolsters the U.S.'s efforts in stemming the illegal flow of arms going south by significantly expanding the `Project Gunrunner' at the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Finally, it requires that the President, within the Department of State, designate a coordinator for the Act in order to harmonize both responsibility and accountability for its wide-ranging programs.

BACKGROUND AND PURPOSE FOR THE LEGISLATION

This bill authorizes assistance to Mexico and the countries of Central America in the areas of: counter-narcotics; the fight against organized crime and youth gang violence; law enforcement modernization; and institution-building and rule of law support. It provides, as well, a framework for delivery and strict accountability of that assistance.

The drug crisis facing the United States remains a top national security threat, with 90% of illegal drugs that enter the United States transiting the Mexico-Central America corridor. Drug cartels that operate in the United States, Mexico, and Central America are dangerously undermining the security environment for our neighbors to the south, and the spillover into our territory is palpable and real. In 2007, President George W. Bush and Mexican President Felipe Calderon met in the city of Merida, Mexico, and President Bush later sent to the Congress a proposal to confront this scourge. That proposal is largely reflected in this legislation.

Our neighbors to the south have stepped up their fight against organized drug trafficking organizations, and have paid a high price for it. In Mexico alone, drug cartels have been blamed for 6,000 deaths in the last 2 1/2 years of this battle. On Thursday May 8, 2008, the Chief of Mexico's Federal police was shot nine times--the tenth assassination of a Mexican Federal police official in the past 2 months. This legislation represents U.S. implementation of a partnership with Mexico and Central America to face the immediate security threat of drug cartels and youth gang violence, help build the capacity of our neighbors' law enforcement agencies, and enhance the rule of law in the region.

The Act recognizes that responsibility for the drug problem is shared, and that we have arrived at a critical moment of opportunity to execute such a comprehensive, joint action plan. It reflects, as well, the need to reduce violence along the U.S.-Mexico border, and control illegal activity going south as well as north, especially the so-called `iron-river' of arms illegally flowing south. Specifically, with respect to Mexico, it acknowledges that the armed forces have been called upon in the short-term to stabilize the security situation, but that this problem falls into the realm of law enforcement, and our focus should be to help build that capacity. Finally, the entire Act is underpinned by the belief that the long-term solution to overcoming illicit drug trafficking and organized crime lies in strengthening the rule of law and those institutions charged with upholding it.

In broad strokes, the purpose of the legislation is to:

Generally, the purposes of the legislation apply in equal measure to Mexico and the countries of Central America. The latter countries, however, have somewhat different requirements than Mexico, and the Act recognizes and targets those needs.

The legislation reflects that it is in the interest of the United States to support a long-term commitment to assist Central America in improving security, particularly through the use of the police forces rather than the armed forces. Ninety percent of the cocaine that flows from the Andean region to the United States travels through the Central American corridor. A commitment to Central America should include activities to combat drug trafficking, invest in prevention programs, increase intelligence sharing, improve regional security coordination and border and customs capabilities, professionalize police, justice and other government officials, and fund programs to reintegrate deportees from the United States. As such, the Act provides considerable funding for Central America.

Crime and violence in Central America has increased in recent years. In 2005, the estimated murder rate per 100,000 people was roughly 56 in El Salvador, 41 in Honduras and 38 in Guatemala. Youth gang violence in particular has been one of the major factors contributing to increased violence in Central America, with the U.S. Southern Command estimating that there are 70,000 gang members in Central America. An important element of the gang phenomenon in Central America is that some youth gangs operating there are transnational and negatively impact both Central America and the United States. Youth gang violence cannot be curbed only through enforcement, but must also include a substantial investment in prevention, rehabilitation and reintegration. Deportees sent from the United States back to Central America, while not a central cause of crime and violence, can contribute to crime and violence in the sub-region. For each fiscal year, the Act sets aside $15 million to address the youth gang issue.

Weak justice systems in Central America have contributed to a high level of impunity in this sub-region. The United Nations International Commission against Impunity in Guatemala (CICIG) was recently created to begin to address impunity related to illegally armed groups in Guatemala. This Act provides operational and technical assistance to the CICIG, as long as it does not negatively impact U.S. domestic operations. The Act also provides support for the creation of witness and victim protection programs in Central America.

Finally, the spread of illicit drugs through this region and into the United States and the violence that accompanies it in the region cannot be halted without a comprehensive interdiction and security strategy planned and executed jointly with our southern neighbors. This legislation provides and authorizes that framework.

HEARINGS

The Committee held four hearings directly related to the subject matter of the bill. A Full Committee hearing took place on November 14, 2007, and focused on the counternarcotics initiative discussed in Merida the previous month. Witnesses included the Honorable Thomas A. Shannon, Jr., Assistant Secretary, Bureau of Western Hemisphere Affairs, Department of State, and the Honorable David T. Johnson, Assistant Secretary, Bureau of International Narcotics and Law Enforcement Affairs, Department of State.

The Subcommittee on the Western Hemisphere conducted a hearing on October 25, 2007, which focused both on the proposed Merida Initiative and a Government Accountability Office (GAO) report on U.S- Mexico joint counternarcotics efforts. Witnesses included Mr. Jess T. Ford, Director, International Affairs and Trade, Government Accountability Office; the Honorable James R. Jones, Co-Chairman and CEO of Manatt Jones Global Strategies, Dr. John Bailey, Georgetown University Center for Latin American Studies; Ms. Joy Olson, Executive Director of the Washington Office on Latin America; and Mr. Armand Peschard-Sverdrup, Senior Associate, Center for Strategic and International Studies.

A second Subcommittee on the Western Hemisphere hearing took place on February 7, 2008, and focused on U.S. domestic obligations under the Merida Initiative, particularly the U.S. commitment in the October 22, 2007 U.S.-Mexico Joint Statement to `intensify efforts to address all aspects of drug trafficking (including demand-related portions) and continue to combat trafficking of weapons and bulk currency to Mexico.' Witnesses included the Honorable Scott Burns, Deputy Director, Office of National Drug Control Policy; the Honorable Thomas A. Shannon, Jr., Assistant Secretary, Bureau of Western Hemisphere Affairs, Department of State; the Honorable Marisa R. Lino, Assistant Secretary for International Security Affairs, Department of Homeland Security; the Honorable William Hoover, Assistant Director for Field Operations, Bureau of Alcohol, Tobacco, Firearms and Explosives; Mr. Anthony Placido, Chief of Intelligence, Drug Enforcement Agency; and Mr. Kenneth W. Kaiser, Assistant Director, Federal Bureau of Investigation.

The Subcommittee on the Western Hemisphere conducted a third hearing on May 8, 2008, that focused on the Central America portion of the Merida Initiative. Witnesses included the Honorable Thomas A. Shannon, Jr., Assistant Secretary, Bureau of Western Hemisphere Affairs, Department of State; Geoff Thale, Program Director of the Washington Office on Latin America; Mr. Harold Sibaja, Regional Representative, Creative Associates International, Inc.; and Ms. Beatriz C. Casals, President, Casals and Associates, Inc.

COMMITTEE CONSIDERATION

On May 14, 2008, the Committee considered H.R. 6028 during a Full Committee markup, and ordered the bill favorably reported, as amended, by voice vote, a quorum being present.

VOTES OF THE COMMITTEE

There was one vote during consideration of H.R. 6028:

Amendment offered by Mr. Tancredo--to Section 301(a) and Section 301(b)--adds to conditions on provision of assistance--defeated by a rollcall vote of 10-23.

Voting yes: Giffords, Burton, Rohrabacher, Royce, Tancredo, Wilson, Barrett, McCaul, Poe and Bilirakis

Voting no: Berman, Ackerman, Faleomavaega, Payne, Sherman, Wexler, Engel, Meeks, Watson, Smith (WA), Carnahan, Woolsey, Jackson Lee, Hinojosa, Crowley, Wu, Miller, Sanchez, Sires, Klein, Lee, Ros-Lehtinen and Fortuno

COMMITTEE OVERSIGHT FINDINGS

In compliance with clause 3(c)(1) of rule XIII of the Rules of the House of Representatives, the Committee reports that the findings and recommendations of the Committee, based on oversight activities under clause 2(b)(1) of rule X of the Rules of the House of Representatives, are incorporated in the descriptive portions of this report.

NEW BUDGET AUTHORITY AND TAX EXPENDITURES

In compliance with Clause 3(c) (2) of House Rule XIII, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by the Director of the Congressional Budget Office, pursuant to section 402 of the Congressional Budget Act of 1974.

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

In compliance with clause 3(c)(3) of rule XIII of the Rules of the House of Representatives, the Committee sets forth, with respect to the bill, H.R.6028, the following estimate and comparison prepared by the Director of the Congressional Budget Office under section 402 of the Congressional Budget Act of 1974:

U.S. Congress,

Congressional Budget Office,

Washington, DC, May 21, 2008.

Hon. HOWARD L. BERMAN, CHAIRMAN,
Committee on Foreign Affairs,
House of Representatives, Washington, DC.

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 6028, the Merida Initiative to Combat Illicit Narcotics and Reduce Organized Crime Authorization Act of 2008.

If you wish further details on this estimate, we will be pleased to provide them. The CBO staff contact is Sunita D'Monte, who can be reached at 226-2840.

Sincerely,

Peter R. Orszag.

H.R. 6028--Merida Initiative to Combat Illicit Narcotics and Reduce Organized Crime Authorization Act of 2008.

SUMMARY

H.R. 6028 would authorize assistance for Mexico and Central American countries to control drug trafficking and organized crime and direct the Department of Justice to expand its efforts to prevent trafficking of firearms across the U.S.-Mexico border. It would authorize the appropriation of $1.6 billion over the 2008-2010 period for those purposes. CBO estimates that implementing H.R. 6028 would cost $1.5 billion over the 2008-2013 period, assuming appropriation of the authorized amounts. Enacting the bill would not affect direct spending or revenues.

H.R. 6028 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA) and would impose no costs on state, local, or tribal governments.

ESTIMATED COST TO THE FEDERAL GOVERNMENT

The estimated budgetary impact of H.R. 6028 is shown in the following table. The costs of this legislation fall within budget functions 150 (international affairs) and 750 (administration of justice).

BASIS OF ESTIMATE

For this estimate, CBO assumes that H.R. 6028 will be enacted in June 2008, that the specified amounts will be appropriated each year, and that outlays will follow historical spending patterns for similar programs. (Funding for 2008 would have to be provided in a supplemental appropriations act; most of the outlays from any such 2008 funding would occur in later years.) 

By Fiscal Year, in Millions of Dollars
------------------------------------------------------------------------------------------------------
                                                              2008 2009 2010 2011 2012 2013 2008-2013 
------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION                                                          
Assistance for Mexico Authorization Level                       70   90   50                     ,110 
 Estimated Outlays                                               8   71   81   80    9    1      ,050 
Assistance for Central American Countries Authorization Level   00   30   75                       05 
 Estimated Outlays                                               0    5   17   07    8    4        71 
Department of Justice Programs Authorization Level               5    5    5                        4 
 Estimated Outlays                                                    7    0                        4 
 Total Changes  Authorization Level                             95   45   50                     ,589 
  Estimated Outlays                                              0   93   28   92    7    5      ,495 
------------------------------------------------------------------------------------------------------

Assistance for Mexico

Title I would authorize the State Department to provide assistance to train and equip the Mexican armed forces and law enforcement agencies to control drug trafficking and organized crime, and to strengthen that nation's judicial system. The bill would authorize the appropriation of $1.1 billion for Mexico over the 2008-2010 period. CBO estimates that implementing the provisions of title I would cost about $1 billion over the 2008-2013 period, assuming appropriation of the specified amounts.

Assistance for Central American Countries

Title II would authorize the appropriation of $405 million over the 2008-2010 period to provide assistance to several countries in Central America: Belize, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Haiti, Honduras, Nicaragua, and Panama. Those funds would be used for purposes similar to those specified for Mexico in title I of the bill. CBO estimates that implementing the provisions of title II would cost about $370 million over the 2008-2013 period, assuming appropriation of the specified amounts.

Department of Justice Programs

Title IV would authorize the appropriation of $24.5 million for each of the fiscal years 2008 through 2010 for the Department of Justice to combat the trafficking of firearms across the U.S.-Mexico border. CBO estimates that implementing those provisions would cost $74 million over the 2008-2013 period, assuming appropriation of the specified amounts.

Other Provisions

Section 501 would require the Secretary of State to designate a coordinator to oversee the programs authorized under H.R. 6028. In addition, the bill would require several reports on the implementation of the bill's provisions. CBO estimates that implementing those requirements would cost less than $500,000 over the 2009-2013 period, assuming the availability of appropriated funds.

INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

H.R. 6028 contains no intergovernmental or private-sector mandates as defined in UMRA and would impose no costs on state, local, or tribal governments.

ESTIMATE PREPARED BY:

Federal Costs:

Department of Justice Programs--Mark Grabowicz (226-2860)

Other Federal Costs--Sunita D'Monte (226-2840)

Impact on State, Local, and Tribal Governments: Neil Hood (225-3220)

Impact on the Private Sector: MarDestinee Perez (226-2940)

ESTIMATE APPROVED BY:

Peter H. Fontaine

Assistant Director for Budget Analysis

PERFORMANCE GOALS AND OBJECTIVES

The Act is intended to combat illicit narcotics trafficking and reduce organized crime in Mexico and Central America.

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d) (1) of rule XIII of the Rules of the House of Representatives, the Committee finds the authority for this legislation in article I, section 8 of the Constitution.

NEW ADVISORY COMMITTEES

H.R. 6028 does not establish or authorize any new advisory committees.

CONGRESSIONAL ACCOUNTABILITY ACT

H.R. 6028 does not apply to the Legislative Branch.

EARMARK IDENTIFICATION

H.R. 6028 does not contain any congressional earmarks, limited tax benefits, or limited tariff benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI.

SECTION-BY-SECTION ANALYSIS AND DISCUSSION

Section 1. Short Title.

Section 1 cites the Act as the `Merida Initiative to Combat Illicit Narcotics and Reduce Organized Crime Authorization Act of 2008.'

Section 2. Definitions.

This section provides definitions for use in the Act. In subsection (2), the Committee includes Haiti and the Dominican Republic in the definition of `Central America' in recognition of the fact that the illicit narcotics-related violence afflicting mainland countries in Central America is also afflicting those countries used as transit routes for narcotics.

TITLE I--ASSISTANCE FOR MEXICO

Title I authorizes assistance to Mexico to enhance the ability of the Government of Mexico to combat illicit narcotics production, trafficking, drug trafficking organizations, and organized crime, and to enhance the rule of law and strengthen civilian institutions. Title I also authorizes appropriations to carry out such assistance; limits the amounts of assistance that may be provided to the armed forces of Mexico; and limits such assistance where credible evidence exists regarding human rights violations.

Section 101. Findings.

This section articulates findings that explain the genesis of the Act, including the finding that narcotics-related activity and expanding cross-border trafficking is dangerously undermining the security environment for the United States and its neighbors to the south; and calls attention to President Bush and Mexican President Calderon's joint statement announcing the Merida Initiative to fight illicit narcotics trafficking and criminal organizations throughout the Western Hemisphere. In the joint statement, Mexico pledged to more effectively fight drug-traffickers and organized crime, the United States pledged to intensify efforts to address drug trafficking, including domestic demand, weapons trafficking, and bulk currency smuggling, and both nations pledged to augment cooperation and coordination to fight criminal organizations on both sides of the border.

Section 102. Declarations of Policy.

This section declares that: the Merida Initiative is a critical part of a growing partnership and strategy of cooperation between the United States and its southern neighbors to confront the illegal flow of narcotics as well as violence and organized crime that it has spawned; the United States needs to ensure the free flow of trade between the U.S. and Mexico while ensuring that the border is protected from illegal smuggling into the United States; the United States must undertake actions to complement those of Mexico, including efforts to stem the flow of precursor chemicals, bulk-cash, and the so-called `iron-river' of arms illegally flowing south, as well as demand-related aspects of the illicit drug phenomenon; and that the Mexican military is currently involved in counter-drug activities to stabilize the security situation, but that law enforcement agencies are ultimately responsible to address the narcotics-related problems.

SUBTITLE A--LAW ENFORCEMENT AND SECURITY ASSISTANCE.

This subtitle authorizes assistance to Mexico for law enforcement and security assistance purposes.

Section 111. Purposes of Assistance.

This section establishes principles that should undergird the provision of assistance authorized under Subtitle A. These principles include that assistance should enhance the ability of the Government of Mexico, in cooperation with the United States, to control illicit narcotics production, trafficking, drug trafficking organizations (DTOs), and organized crime; help build the capacity of law enforcement forces of Mexico to control illicit narcotics production, trafficking, DTOs, and organized crime; and strengthen respect for internationally-recognized human rights and the rule of law in efforts to stabilize the security environment relating to illicit narcotics production and trafficking. In establishing these principles, the Committee recognizes that although a solution to drug-fueled violence rests, among other things, in enhancement of the rule of law in Mexico and its neighbors, short-term security efforts are needed to stabilize the situation, including assistance to the armed forces of Mexico.

Section 112. Authorization of Assistance.

This section authorizes the President to provide assistance for Mexico to carry out the purposes of section 111.

Section 113. Activities Supported.

This section authorizes four general categories of assistance (counternarcotics and countertrafficking; port, airport, and related security; operational technology; and public security and law enforcement). Collectively, these categories constitute the bulk of security assistance to be provided to Mexico in order to enhance that country's military and law enforcement capacity to disrupt illicit narcotics trafficking and combat DTOs. The categories also generally track those categories of assistance proposed by the State Department. The Committee intends that the Department of State has latitude in determining how to best implement the Merida Initiative, although Congress expects the Administration to consult with Congress generally on implementation.

Subsection 113 (a)(1) authorizes assistance to help build the capacity of law enforcement and security forces of Mexico to eradicate illicit narcotics trafficking and reduce trafficking-fueled violence. Such assistance may include the transfer of helicopters--on a loan or lease basis--to Mexico's armed forces, along with surveillance platform planes, and land and maritime interdiction equipment. This subsection also authorizes the training of security and law enforcement units solely for the purpose of planning and executing counternarcotics operations. The Committee recognizes that terrorists and other entities could exploit the trafficking routes used by narcotics smugglers. To the extent a terrorist threat exists, the Committee intends that other authorities, including Section 1206 authority of the National Defense Authorization Act for Fiscal Year 2006 (P.L. 109-363), be used for such purposes.

Subsection 113(a)(2) authorizes assistance to help Mexico monitor and control the United States-Mexico border and the border between Mexico and Central America. The Committee is aware that improving the monitoring of the U.S.-Mexico border is a critical priority in the fight against smuggling, as is safeguarding ports of entry. The Committee intends that assistance authorized pursuant to this section address immediate needs to improve the monitoring of activity along the U.S.-Mexico border.

The Administration's initial proposal to Congress referenced the transfer of Mobile Gamma Ray and Ion scanners for the armed forces of Mexico. The Committee believes that such assistance should be directed exclusively to civilian law enforcement agencies and its use governed by the latter, though the armed forces may be involved in the utilization of such assistance.

Subsection 113(a)(3) authorizes assistance to help Mexican law enforcement agencies to investigate and collect intelligence against DTOs. Such assistance may include provision of hardware, operating systems, and communications networks for Mexican intelligence agencies. Provision of such assistance is premised on the notion that to fight drug organizations and reduce violence, Mexico must enhance the intelligence gathering capabilities of its security agencies.

The Committee is well aware of instances in the past where the Government of Mexico has used its access to modern technology to observe the activities of its citizens. The Committee urges the Government of Mexico in the strongest possible terms to use such equipment solely for the limited purposes of enhancing control of the border and monitoring drug trafficking organizations, other criminal organizations and terrorist networks. The Committee strongly encourages the Administration to monitor how such intelligence-related technology provided to the Government of Mexico is being used and to take all necessary steps to ensure that the use of such equipment is consistent with internationally-recognized human rights standards.

Subsection 113(a)(4) authorizes assistance to facilitate the modernization of law enforcement entities and prevent crime. Such assistance may include provision of helicopters, surveillance aircraft, and human rights training. Subsection 113(b) makes clear the Committee's intent that funds made available to purchase helicopters pursuant to this Act are used to procure helicopters that are of a similar manufacture to those helicopters already in the possession of the Government of Mexico. The Committee believes that transfer of helicopters of a similar manufacture will greatly facilitate integration of such equipment into Mexico's existing fleet.

As noted in Section 111 (Statement of Purpose), the Committee believes that military assistance should be phased out as Mexico's law enforcement agencies assume more of the fight against drug trafficking organizations. In that spirit, it is the Committee's intent that all equipment transferred to the armed forces of Mexico be cross-utilized by other relevant law enforcement agencies, and that the U.S. Department of State track how well the armed forces of Mexico are sharing such assets with law enforcement agencies.

Finally, the Committee acknowledges the concerns expressed by human rights organizations regarding authorization for the transfer of helicopters to Mexico. The Committee believes that such assistance is critical at this juncture to combat the scourge of illicit narcotics but that the U.S. Government must maintain strict oversight over such air assets to ensure they are deployed for appropriate purposes.

Section 114. Limitation on Assistance.

Section 114 incorporates the `Leahy' human rights limitation of Section 620J of the Foreign Assistance Act of 1961, as amended (22 U.S.C. 2378d), into the bill and prohibits assistance to any unit of the armed forces of Mexico or law enforcement agency of Mexico if the Secretary of State determines that there is credible evidence that such unit has committed gross violations of human rights. The Committee expects that existing Leahy procedures will be used to ensure compliance with this provision, including the vetting of all units of security forces that will receive funding pursuant to this Act. The Committee expects that the State Department will ensure that members of a unit against whom credible evidence has been found, are not reassigned to other `clean' units that do not trigger vetting problems.

Section 115. Authorization of Appropriations.

Subsection 115(a) provides an authorization totaling $780 million over Fiscal Years 2008-2010.

Subsection 115(b) limits the amount of funds that may be provided to the armed forces of Mexico over Fiscal Years 2008-2010. This limitation reflects the Committee's belief that although the armed forces of Mexico may be necessary to stabilize the security situation in the short-term, law enforcement agencies must ultimately spearhead the fight against drug-related violence.

SUBTITLE B--ASSISTANCE TO ENHANCE THE RULE OF LAW AND STRENGTHEN CIVILIAN INSTITUTIONS.

This subtitle authorizes assistance to Mexico for the purposes of enhancing Mexico's judicial system, civilian institutions, and rule of law. It is intended to complement security assistance to Mexico authorized in Subtitle A.

Section 121. Sense of Congress.

Section 121 reiterates the Committee's belief that the solution to drug-related violence ultimately rests in `smart power' programs to enhance the rule of law and fortify Mexico's civilian institutions.

Section 122. Authorization of Assistance.

Section 122 authorizes the President to provide assistance for Mexico to carry out the activities described in section 123.

Section 123. Activities Supported.

Section 123 authorizes four general categories of assistance (institution building and rule of law; anti-corruption, transparency, and human rights; prevention of individuals from participating in illicit narcotics-related activities; and development).

Subsection 123(1) authorizes assistance for Mexico's efforts to expand the rule of law and build the capacity, transparency, and trust in government institutions. Such assistance includes funding to support the development of: a Clerk of Court system; prosecutor capacity building; technical assistance for prison management; and prison reform activities. Assistance also includes maintenance of data systems, including costs of 2 years of maintenance for transferred equipment, with the intent that the Government of Mexico will have sufficient time to incorporate such expenditures in its own budget.

Subsection 123(2) authorizes assistance to help Mexican law enforcement and court institutions develop mechanisms to ensure due process.

Subsection 123(3) authorizes assistance for prevention programs focused on at-risk youth.

Subsection 123(4) authorizes assistance for development purposes. The Committee recognizes that joblessness fuels narcotics-related violence. The Committee believes that development will help stem violence in the long-term and is a critical component of a successful counternarcotics strategy.

Section 124. Authorization of Appropriations.

This section authorizes $330 million over Fiscal Years 2008-2010 to carry out the purposes of subtitle B. This figure constitutes a significant plus up of the Administration's proposal.

TITLE II--ASSISTANCE FOR COUNTRIES OF CENTRAL AMERICA

This title authorizes funds for assistance to Central America. It is intended to mirror many of the kinds of assistance provided to Mexico in Title I as well as address specific problems in Central America, such as youth gangs.

Section 201. Findings.

This section includes various findings regarding Central America's particular problems with illicit narcotics-related violence, as well as the proliferation of transnational youth gangs and the sharp increase in murders in the sub region.

Section 202. Declarations of Policy.

This section declares, among other things, that a long-term U.S. strategy to curb illicit narcotics trafficking must include Central America, and that the United States must seize the opportunity to work in partnership with Central America to address the growing issue of drug trafficking and related violence.

SUBTITLE A--LAW ENFORCEMENT AND SECURITY ASSISTANCE.

Subtitle A authorizes assistance for law enforcement and security forces of countries in Central America.

Section 211. Purposes of Assistance.

This section establishes the basis upon which assistance should be provided to Central America. These purposes include combating youth gang violence. The Committee is aware of human rights abuses committed by the armed forces and police forces of several potential recipient countries. It is the Committee's intention that assistance provided pursuant to this Act strengthens respect for internationally-recognized human rights and the rule of law in recipient countries.

Section 212. Authorization of Assistance.

Section 212 authorizes the President to provide assistance for the countries of Central America to carry out the purposes of section 211.

Section 213. Activities Supported.

Section 213 enumerates the activities authorized under the bill, including: counternarcotics, countertrafficking, and related security; and public security and law enforcement.

Section 214. Limitation on Assistance.

Section 214 incorporates the `Leahy' human rights limitation into the Central America subtitle.

Section 215. Authorization of Appropriations.

Section 215 authorizes $220 million over Fiscal Years 2008-2010 to carry out the activities of Subtitle A.

Subsection 215(c) requires that at least $15 million of appropriated funds be made available to carry out section 213(2)(B) (youth gang prevention activities). The Committee intends to attack a key source of violence--youth gangs--through a long-term investment in prevention programs.

SUBTITLE B--ASSISTANCE TO ENHANCE THE RULE OF LAW AND STRENGTHEN CIVILIAN INSTITUTIONS.

Subtitle B authorizes assistance for non-security programs to address the endemic conditions giving rise to trafficking-related violence in Central America.

Section 221. Authorization of Assistance.

This section authorizes the President to provide assistance for the countries of Central America to carry out the activities enumerated in section 222.

Section 222. Activities Supported.

Section 222 authorizes the President to undertake activities to build the capacity, transparency, and trust in the justice systems of recipient countries and reduce unacceptable high impunity rates in Central American countries. Assistance may also be used to enhance the Electronic Travel Document (ETD) System and Repatriation Notification System.

Section 223. Authorization of Appropriations.

Section 223 authorizes $185 million over Fiscal Years 2008-2010 to carry out the activities of Subtitle B.

TITLE III--ADMINISTRATIVE PROVISIONS

Title III places several conditions on provision of assistance to recipient countries, caps the number of contractors present in each recipient country, and prohibits cash payments.

Section 301. Conditions on Provision of Assistance.

Section 301(a) prohibits the President from providing assistance under title I or II to a foreign country under the Act until 15 days after the President determines that the requirements described in subsection (b) have been met. This Committee intends this determination to be consistent with, and in some cases, stronger than, existing requirements in law, including section 1033 of the National Defense Authorization Act for Fiscal Year 1998, as amended.

Subsection 301(b) spells out the requirements referred to in subsection (a). These requirements include:

Section 302. Limitations on Provision of Assistance.

Subsection 302(a) articulates the sense of Congress that to the extent possible, activities undertaken under Title I and II should be performed by employees and officers of the recipient country, not by U.S. citizens or foreign nationals retained as contractors in a recipient country. The Committee intends that the limitations enumerated in Section 302 address concerns regarding the extensive use of contractors to execute U.S. Government-funded counternarcotics operations.

Subsection 302(b)(1) caps at 50 the total number of U.S. citizens or foreign nationals retained as contractors to carry out Title I of this Act. The purpose of this provision is to ensure that either officials or employees of the recipient country or U.S. Government employees implement programs under this Act.

Subsection 302(b)(2) caps at 100 the total number of U.S. citizens or foreign nationals retained as contractors to carry out Title II of this Act.

Subsection 302(b)(3) requires that none of the funds made available under this Act shall be made available for budget support or cash payments. The Committee fully expects that assistance provided under this Act will be in the form of equipment or training; no cash shall be offered to bolster a recipient country's counternarcotics efforts. The purpose of this limitation is to ensure that the assistance addresses those concerns identified by Mexico, Central America and the United States, and that the United States maintains visibility over assistance provided.

Subsection 302(c) authorizes the President to waive the limitations in subsection (b) if it is in the national interest of the United States to do so. It is the Committee's belief that the President shall exercise this waiver only in limited circumstances.

Section 303. Limitation on Monitoring.

This section prohibits transfer of surveillance-related equipment to a recipient country unless the President determines that the recipient country has cooperated with the United States to ensure that such equipment will be used principally for the purposes for which it is provided. The Committee understands that there may be rare instances where such equipment would be used in a non-counternarcotics context, such as a humanitarian relief operation. The determination required would encompass transfer of equipment to the Mexican Intelligence Agency.

Section 304. Exemption from Prohibition on Assistance for Law Enforcement Forces.

This section authorizes the President, notwithstanding section 660 of the Foreign Assistance Act of 1961 (22 U.S.C. 2420) to provide assistance under Title I or II to the police forces of recipient countries. The Committee believes that such `notwithstanding' authority is necessary to ensure that assistance flows to police forces in recipient countries engaged in counternarcotics activities.

Section 305. Relationship to Other Authority.

This section makes clear that this Act is in no way intended to amend other authority to provide assistance to Mexico or Central America.

Section 306. Rule of Construction.

This section confirms that the Arms Export Control Act (22 U.S.C. 2751 et seq.) applies to all transfers of equipment under this Act, unless otherwise specified in this Act.

TITLE IV--SUPPORT ACTIVITIES IN THE UNITED STATES

This title authorizes activities in the United States to support the Merida Initiative. The Committee believes that the Merida Initiative will only be successful if the United States Government undertakes steps domestically, including reducing domestic drug demand and the southbound flow of illegal weapons.

Section 401. Report on Reduction of Drug Demand in the United States.

Subsection 401(a) expresses the sense of Congress that taking steps to reduce drug demand in the United States is one of the most important contributions the United States can make to combat illicit narcotics trafficking.

Subsection 401(b) requires the President to issue a report on the measures taken to reduce drug demand in the United States.

Section 402. Reduction of Southbound Flow of Illegal Weapons.

This section is based on H.R. 5869 (`Southwest Border Violence Reduction Act of 2008').

Subsection 402(a) expresses the sense of Congress that the number of licensed gun sellers along the 2,000-mile U.S.-Mexico border dwarfs the number of ATF agents assigned to stop illegal weapons trafficking, and that a critical part of a United States contribution to the Merida Initiative is an effective strategy to combat the illegal southbound flow of arms.

Subsection 402(b) requires the Attorney General to expand resources for Project Gunrunner, an initiative to identify, investigate, and prosecute individuals involved in the trafficking of firearms across the United States-Mexico border. The Committee notes the critical role of the ATF in tracking weapons across the border and believes that enhanced presence of the ATF and other appropriate law enforcement agencies along the border is critical to stopping the `iron river' of weapons. Subsection 402(b)(4) authorizes $15 million to carry out this subsection for each Fiscal Year 2008 through 2010.

Subsection 402(c) requires the Attorney General, in cooperation with the Secretary of State, to assign agents of the ATF to the U.S. mission in Mexico. These agents shall focus on training Mexican law enforcement officers to conduct investigations relating to firearms trafficking and serial number restoration techniques. They will also be responsible for supporting investigations and tracing firearms recovered in Mexico, a key asset of the ATF that must be shared with Mexican law enforcement agencies.

Section 403. Reduction of Southbound Flow of Illegal Precursor Chemicals and Bulk-Cash Transfers.

This section expresses the sense of Congress that the United States Government must take steps to halt the flow from the U.S. to Mexico of precursor chemicals used in the production of illegal drugs.

Section 404. Report.

This section requires the President to transmit a report regarding specific measures taken to stop the flow of precursor chemicals.

TITLE V. MISCELLANEOUS PROVISIONS.

This title establishes a coordinator of U.S. Government activities to implement the Merida Initiative; requires the Administration to establish metrics to gauge success and ensure accountability of the Initiative; and requires a comprehensive report on activities undertaken pursuant to this Act.

Section 501. Coordinator of United States Government Activities to Implement the Merida Initiative.

Subsection 501(a) declares that a single coordinator is required to manage and track all U.S. Government Merida-related efforts to ensure accountability and avoid duplication. Although the Committee has provided the State Department latitude in determining specifically how to implement this Act, the Committee also understands that numerous entities will be involved in implementation. In turn, the Committee believes that a single coordinator is required to manage U.S. Government efforts and to serve as a point person for the recipient countries and the U.S. Congress. The Committee is particularly concerned regarding overlapping counternarcotics authorities and programs among several Departments and the concomitant difficulties in programmatic oversight such overlap creates.

Subsection 501(b)(1) designates a high level coordinator within the Department of State to implement the Merida Initiative and spells out the responsibilities of the Coordinator, including designing an overall strategy to advance the purposes of this Act, and ensuring program and policy coordination among all agencies providing assistance under this Act. The Coordinator need not be a State Department employee prior to selection, but the position of the Coordinator shall be resident at the Department of State. Responsibilities include coordinating assistance provided by the Department of Defense pursuant to section 1004 of the National Defense Authorization Act for Fiscal Year 1991, as amended (Public Law 101-510) and section 1033 of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85).

The key responsibility of the Coordinator will be to review, oversee, and harmonize programs authorized pursuant to this Act. In that regard, the Committee expects that the Coordinator shall have control over designating budgetary priorities for all funds appropriated to the Department of State for the Merida Initiative. The Committee also expects that the Coordinator will work closely with other agencies to ensure their budgetary priorities are consistent with those of the overall Initiative.

Subsection 501(b)(2) establishes that the Coordinator shall have the rank and status of ambassador. The Committee intends that the Coordinator shall work closely with the Assistant Secretary for Western Hemisphere Affairs, Department of State, but shall be independent of that office.

Section 502. Metrics and Oversight Mechanisms.

Subsection 502(a) expresses the sense of Congress that the President should establish metrics to track the effectiveness of activities undertaken pursuant to this Act.

Subsection 502(b) requires the President to develop metrics to identify, track, and manage the progress of activities undertaken pursuant to this Act. The Committee intends that the President will track metrics in order to determine the allocation of resources for counternarcotics and organized crime-related efforts. The Committee also expects that the President will consult with Congress in developing these metrics.

Subsection 502(c) requires the President to transmit to the appropriate congressional committees a report that spells out the metrics the President shall establish.

Section 503. Report.

This section requires the President to transmit to Congress a report on key aspects of the Act. The requirements are intended to mirror the provisions of the Act.

Section 503(b)(4) requires an assessment of the human rights impact of the equipment and training provided under this Act. The Committee intends that all human rights reporting regarding activities undertaken pursuant to this Act will be catalogued in this report. To the extent such information would be relevant to the State Department's annual Country Reports on Human Rights Practices, required under sections 116(d) and 502(B) of the Foreign Assistance Act of 1961 (22 U.S.C 2151n(d) and 2304(b)) and section 504 of the Trade Act of 1974 (19 U.S.C. 2464), the Committee expects that the information will be inserted into that report as well.

Section 504. Sense of Congress.

This section expresses a sense of Congress that the United States Government requires an integrated public diplomacy strategy to explain the purposes of the Merida Initiative. In particular, the U.S. Government must explain how the Initiative involves a partnership among the United States, Mexico, and countries of Central America to eradicate narcotics-related violence and crime.

Section 505. Sunset.

This section provides that the authority for this Act shall expire after September 30, 2010.

ADDITIONAL VIEWS

This legislation confirms that it is in the interest of the United States to fund programs to reintegrate deportees from the United States back into the societies of their home countries to avoid further criminal activity and authorizes such programs. In fact, the United States has provided such transitional assistance in Haiti and elsewhere.

However, this is only one aspect of a three-part approach to the deportee dilemma. Last July, the Subcommittee on the Western Hemisphere held a hearing on deportees which examined this question and learned of specific problems relating to criminal deportations. First, we learned that when the United States deports an individual for a criminal act, the recipient country only learns of the offense triggering the deportation, not any other criminal act in the individual's past. This means a foreign government might not be prepared to receive a deportee with a very violent past simply because the U.S. did not transfer all of the relevant information about that person.

Second, tightened U.S. laws removed much of the discretion from the deportation process. In some instances, this has been a serious problem for individuals and families who have made this country their home. There are cases of legal permanent residents of the United States who have lived here for many years, are raising children, pay taxes, own a home, or even serve in the military, but are deported because they commit a minor crime. These may not be the type of people we should be deporting.

Congress needs to consider legislation to focus on all three parts of the deportation problem: Providing better information about criminal deportees by sending the full NCIC (National Crime Information Center) record on a criminal deportee to a foreign recipient government; increasing discretion so that a judge can determine if a person with deep ties to the U.S. who does not commit a serious crime might be eligible to remain in this country; and, helping countries absorb deportees through reintegration programs, as authorized under this act.
Eliot L. Engel.