Hearing of the Senate Finance Committee : Methamphetamine Supply Chain Disruption

Statement

HEARING OF THE SENATE FINANCE COMMITTEE : METHAMPHETAMINE SUPPLY CHAIN DISRUPTION

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SEN. CHUCK GRASSLEY (R-IA): These problems never go away, Mr. Chairman, and I'm glad you're having this hearing because we've got to continue to fight them. So I thank all for joining us today as we continue to discuss methamphetamine and the problems associated with that drug.

For years we've heard countless stories of individuals impacted by meth, either as users or members of a larger community tasked with repairing the meth damage that's done to our society. It also stains -- strains the resources of a multitude of government agencies forced to respond, agencies ranging from those charged with caring for the children of meth addicts to those who enforce the laws. And all of this continues to be a terrible drain on our taxes.

Terrible stories of meth use are all too real, and as a senator from a rural state, I can attest to the disproportionate impact that the meth problem has on rural America. That said, we've had some success in the last few years. The Combat Methamphetamine Act is a good example, has made a real difference in restricting the sale of precursor chemicals.

The Combat Meth Act gave new federal tools to prosecutors to give meth cooks and traffickers, to keep them off the street. It provided vital resources to state and locals. These new tools have paid off. Since that Act, we've seen a dramatic decrease in the number of clandestine meth labs and large super-labs across the country. In Iowa, this has proven to be particularly effective. Meth lab incidents have decreased from about 1,500 three years ago, when the Iowa law went into effect, to just 89 through July 31st of this year.

While this is significant progress, it doesn't mean our meth problem has been eliminated. For instance, one area that can be improved is updating the log book requirements to allow electronic records, to allow a more effective monitoring of PSE sales. Currently, Combat Meth Act only requires retailers to keep paper records, so you can't stop the smurfing of drugs. So I join Senator Burden (sic) -- Durbin to close this smurfing loophole. That bill would amend the Combat Meth Act to allow for electronic log book systems and create a federal grant program for states looking to create and enhance existing electronic systems.

Furthermore, we need to make sure that when we close one door for meth production, we don't open another. In fact, one of the biggest problems with meth today is importation. There have been countless reports about international drug trafficking cartels producing meth and transporting it here. Further, we're hearing from law enforcement that this foreign method is -- meth is stronger and more potent than domestically-produced meth, with increased deaths. I'm concerned that this new, stronger meth is now on our streets, filling a void created when the states and federal government passed our laws.

For instance, it is currently estimated that over 80 percent of the meth on the streets in Iowa comes from Mexico, where it is being produced in super labs controlled by drug cartels. A recent bust in Des Moines, Iowa occurred, as part of an organized crime drug enforcement task force sting operation, where 17 illegal immigrants from Mexico were recently caught with over 20 pounds of meth and over $500 thousand in cash. We know from experience that these cartels are ruthless and will stop at nothing.

To address this growing concern, we have witnesses today that will help us review what's going on and how we can work to improve it.

Mr. President -- or, Mr. Chairman, the rest of my statement I'll put in the record and ask that a printed statement take the place of my vocal statement.

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SEN. GRASSLEY: Thank you, Mr. Chairman, and for all of you for your testimony.

And Mr. Siebel, glad to know that your program is working. A couple years ago you came in and briefed me on it. I appreciate that very much and glad to have the follow up today.

MR. SIEBEL: Thank you.

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SEN. GRASSLEY: Mr. Kendell, I want to get your opinion about the block grant and the cutting of the COPS and Byrne-JAG program. I remain concerned that these proposals keep coming up that are going to limit these vital grant programs.

First question: Should the funding be pulled and the Byrne-JAG Grant Program be dissolved, what sort of impact would this have on drug enforcement task force in our state? And then if you could also give me a rough idea -- and you may not be able to do this -- but what percentage of arrests and prosecutions would you attribute to the funding provided by these programs in our state?

MR. KENDELL: Byrne-JAG funding is vital to the drug enforcement effort in Iowa and I think it's -- that's the case, I think, in many states. Without that funding we're not going to have a multi- jurisdictional task force program. And I think we've seen that over the last five years.

The money's actually been cut, in the neighborhood of 50 percent, to Iowa over the last five years. And what we have left is a skeleton -- a skeleton crew, basically, of multi-jurisdictional task forces. And what you see in Iowa is, that's the -- that's the grassroots level of drug enforcement.

Seventy-four percent of the cases filed by the State Division of Narcotics Enforcement originated as multi-jurisdictional task force cases. And the majority of DNE's cases get adopted for federal prosecution. So it really does -- in Iowa, in particular, starts at the grassroots level in the communities.

And this is really the only way that those communities have to be able to have any kind of coordinated drug enforcement effort. You know, it allows them to share resources. You know, we have some communities in Iowa that have a three-person police force. Between 24/7 coverage of their streets, they don't have time to do drug enforcement. So it's absolutely vital.

As far as --

(Cross talk.)

SEN. GRASSLEY: -- you were going to answer my next question.

MR. KENDELL: I was just going to say, as far as the percentage of arrests, I did -- I provided some materials in my -- in my written testimony. I don't have the numbers in my -- in my head, but they -- we laid out our state fiscal year '07 arrest numbers for drug task forces in Iowa.

SEN. GRASSLEY: Okay. What effect, Mr. Kendell, is the purer form of meth having on users and our state's attempt to reduce addiction rates?

MR. KENDELL: With the -- with the reduction in the labs, we've had about a percent decrease in the number of people admitted to treatment for methamphetamine as their primary drug -- from like 14.6 percent of admissions, down to 13.6 percent. It's almost a nominal decline.

The purity level, it just makes it that much harder for them to be faced with the situation that they want to -- that they can change, and that they can make a different track in their life. And that's where the prevention programs that we've heard about are good. ONDCP has one going recently that provides a message of hope, and I think that's important also, in the prevention programs that we do, that there is hope for people addicted to methamphetamine, that treatment can work.

SEN. GRASSLEY: Ms. McCampbell, August the 7th, the Washington Post ran an article entitled, "U.S. Anti-Drug Aid Would Target Mexican Cartels," stated that the administration was close to securing a multi-year deal to provide anti-drug aid to Mexico, similar to Colombia. The article states that the deal would likely involve training and gear to Mexico to help root-out drug cartels. However, while the article provides some information on this proposed agreement, it's short on details.

So I have another hat, as co-chairman of the Senate Caucus on International Narcotics Control, I have an interest in any agreement that would provide foreign aid for international control. So given that you're here to testify on current issues dealing with methamphetamine and the border, can you provide us with some details on this agreement and how it would help curb the importation of high- quality meth from Mexico?

MS. MCCAMPBELL: Yes. Senator, we have been -- when the president met in Canada just recently and met with President Calderon, they did have extensive talks about what can we do -- what can the United States do with Mexico to act as partners. Not to come in and just give aid, but to work as partners because the drug trafficking and the gang-related, the meth -- it's all affecting both of our countries. And we believe that President Calderon has made extensive efforts to try to curb this problem and he definitely, when he speaks, he seems like he's on our side and we have a common mission together.

As far as details, the details, the reason it's not in the paper is because we don't have the details down yet. We have sent a number of teams down to Mexico trying to determine what is it that we can do to help them -- what kind of equipment can we give them, what kind of training we can provide. So it -- we don't have the details yet, but the president has said that -- or at least our legislative folks are preparing to come and meet individually with Congress.

SEN. GRASSLEY: Would you brief me, in my capacity as Chairman of the International Narcotics Control Caucus, when you have those details?

MS. MCCAMPBELL: Absolutely.

SEN. GRASSLEY: Okay.

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SEN. GRASSLEY: I'll ask a couple questions that I wasn't able to ask.

Also, Senator Roberts informed me that he would be back to ask questions so -- and let me ask is Senator Baucus coming back? He will be? Okay.

Mr. Rannazzisi, or Ms. McCampbell, or Mr. Allen, or maybe one or all of you -- I want to ask about candy-flavored meth. I think you probably know better than I do that this is a problem.

In the past year law enforcement officials have been finding a greater presence of this meth on the West Coast and in the Midwest. So far 13 states have documented arrests of candy-flavored meth related charges. Is candy-flavored meth part of the Mexican drug cartel's efforts to get children addicted to their product or is this emerging trend largely more homegrown?

All of you or one of you -- whoever can answer it.

MR. ALLEN: Well, we've identified cases where there have been candy flavored, a strawberry quick meth or whatever you're talking about -- I don't know if we could tie it to one particular organization or a Mexican organization. That's something we'd have to get back to you on, sir. But I promise that once we get done here, we'll go back and look at all our files to determine that.

SEN. GRASSLEY: Okay. Is that the same for the rest of you that I was going to ask?

MS. MCCAMPBELL: I would just -- I don't have specific knowledge on it. Either -- the only thing I can say is that we did see some candy-flavored meth coming out from the "mom and pop" labs, the smaller labs that were, you know, in the rural areas. But I don't know that we've seen any of it in large amounts.

SEN. GRASSLEY: Okay.

MR. RANNAZZISI: And I would say that, you know, at the smuggling level we haven't to my knowledge seen meth that's been -- had flavoring added to it -- mostly because what we see is not really packaged for street level distribution. But we will also take it back and kind of take a look at what we've submitted to the DEA labs to get a sense of whether or not there's those kinds of additives.

SEN. GRASSLEY: Okay. The same three of you, the success of the Combat Meth Act causes us now to turn our attention to our largest outside supplier, as we've said here, Mexico. What legislative changes would you propose to reduce the amount of Mexican meth coming into the United States? What non-legislative changes are needed to help stop the flow of meth coming from Mexico? And if we stopped the production and the trafficking of meth from Mexico, do you believe that somebody would find some other way to get it into the country?

MR. RANNAZZISI: I'll start out and I would say one non- legislative or a hybrid of the legislative in a non-legislative fix is that at the point at which we kind of come to an agreement with the government of Mexico and how we can assist them with the problem, I think we'll need a lot of congressional support to make that happen.

I think we found a very willing partner in the new president there and we've -- he's done all the right things so far. And I think when that time comes we'll need to kind of work as a unified government to make it happen.

And I think to take your second point, as we've talked about a couple of times, as we work to reduce the movement of meth from -- manufacturing and movement of meth from Mexico I think we're going to have to keep our eye on the ball and see how both the smuggling of precursors changes and assist the government of Mexico to focus on whether or not those labs do leave Mexico or whether or not the smuggling of precursor chemicals becomes a challenge for them that we can assist them with. And then also look to other countries where we might see meth production shift to and take the place of Mexico.

SEN. GRASSLEY: Is the answer the same for you other two?

MS. MCCAMPBELL: Yes, in essence. I would say, Senator, that as soon as the details are worked out it which should be very soon -- I think they're at the tail end of coming up with how we're going to go about this security package to Mexico and we can get to you and start informing you of the details I think you'll be pleased of the efforts between our two countries.

SEN. GRASSLEY: Okay. I may have some questions I want to submit in writing but that's all I'm going to ask vocally.

SEN. BAUCUS: Thank you.

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