BUREAU OF NARCOTICS

MARCH 31, 1930.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. HAWLEY, from the Committee on Ways and Means, submitted the following

REPORT

[To accompany H. R. 11143]

The Committee on Ways and Means, to whom was referred the bill (H. R. 11143) to create in the Treasury Department a bureau of narcotics, and for other purposes, having had the same under consideration, report it back to the House without amendment and recommend that the bill do pass.

In recognition of the importance, both from the international and the domestic standpoints, of the efficient enforcement of the Federal narcotic drug laws, the bill provides for the transfer of the important functions under those laws heretofore performed under the direction of a subordinate officer of the Bureau of Prohibition to a new bureau under the direction of a commissioner appointed by the President by and with the advice and consent of the Senate. To this new bureau it also transfers the functions performed under the narcotics drugs import and export act by the Federal Narcotics Control Board. Therefore the major enforcement and permissive features of the Federal narcotic laws will be administered by the proposed new bureau and centralized responsibility in narcotic law enforcement will be imposed upon the commissioner of narcotics.

Since the enactment of the narcotic drugs import and export act on May 26, 1922, the Federal Narcotics Control Board has been charged with certain very important duties. Although the board has discharged these duties as well as was possible with the facilities at its command, and has controlled the imports and exports of narcotic. drugs with commendable strictness, it has been demonstrated that there are difficulties and delays inherent in the performance by such a board of the duties assigned to it under the act.

From an administrative point of view, it would be advantageous to have the work now performed by the board done in one administra

tive office, in which there would be collected all of the statistics and other data required for such work and where decisions could be made promptly regarding matters which at present have to be referred to three departments. It should be possible to perfor the work of the board with greater efficiency if it were done by one offi al in possession of all available information, including that which he would have by virtue of his administration of the Harrison Act. There should be also an advantage resulting from the centralization of authority and responsibility, such as would result from the appointment of a commissioner of narcotics and the transfer to him of the duties of the Federal Narcotics Control Board which is provided for by section 2 of the bill under consideration. This centralization of authority and information under a commissioner of narcotics would greatly assist the international exchange of information and cooperation recognized as essential in dealing with narcotics problems, and would facilitate the preparation of data for use in making representations to foreign governments.

The provisions of section 4 of this bill should remedy an even more important lack in our present system. In the discharge of its duties, the Federal Narcotics Control Board has constantly realized the need of such expert advice and reliable data as will be made available to the commissioner of narcotics by section 4 of this bill, which provides that the Surgeon General of the Public Health Service shall make certain studies and investigations regarding the medical and scientific requirements for narcotic drugs in the United States. Such studies should produce information of first importance to all who are engaged in the study of the narcotics problem, and would be of the very greatest value to the commissioner of narcotics in connection with the determination of the amounts of crude opium and coca leaves to be imported into the United States under the narcotic drugs import and export act.

As a means of bringing about closer cooperation between customs officers and narcotic field officers of the proposed new bureau it is provided that certain of the latter, under appropriate regulations, may be given the authority and power of customs officers to establish a definite liaison between the two services which is considered an important step forward in the effort to solve the major narcotic enforcement problem confronting the Government to-day, i. e., that of preventing the unlawful importation of narcotic drugs from abroad.

The bill furthermore includes an amendment to the narcotic drugs import and export act to permit the importation of decocainized coca leaves which is widely used in the United States as a flavoring for soft drinks. The amendment provides safeguards against importation of extracts containing habit-forming derivatives of coca leaves. Although the domestic legislation regarding the control of narcotic drugs in the United States is considered to be superior to that of any other country, it is, nevertheless, essential that this domestic legislation should be improved whenever possible, not only because of the better control over narcotic drugs which may be exercised in the United States, but also in order to strengthen the position of the United States Government in continuing to press for the adoption of adequate measures of control by other Governments.

ANALYSIS OF THE BILL

The details of the bill are more particularly explained in a summary of its provisions as follows:

Section 1 creates a new bureau in the Treasury Department to be known as the bureau of narcotics and the office of commissioner of narcotics. The commissioner will be appointed by the President, by and with the advice and consent of the Senate, and will receive a salary of $9,000 per annum. The commissioner is required to make an annual report to Congress.

Section 2 authorizes the Secretary of the Treasury to appoint one deputy commissioner without regard to the civil service laws and, under the civil service laws, such officers and employees as are necessary to perform the duties vested in the bureau. The salaries of the deputy commissioner and of all officers and employees shall be fixed in accordance with the classification act of 1923. The number of officers and employees appointed, of course, will be limited by the appropriations made available by Congress. In case of the absence or disability of the commissioner of narcotics or if there is a vacancy in the office of commissioner, the deputy commissioner shall act as commissioner. In the case of the absence or disability of the commissioner and deputy commissioner, or if there is a vacancy in the offices of commissioner and deputy commissioner, the Secretary is. authorized to designate an officer or employee of the Treasury Department to act as commissioner, in order that there will be at all times an officer having power to perform the functions of the commissioner. Subdivision (b) of section 2 authorizes the commissioner of narcotics, subject to regulations by the Secretary of the Treasury, to confer or impose upon officers or employees of the bureau of narcotics any of the rights, privileges, powers, or duties of customs officers. Some testimony was given at the hearings to the effect that customs officers could not adequately enforce all laws relating to the importation and transshipment of narcotic drugs. Your committee believes that officers and employees of the bureau of narcotics if given certain powers of customs officers will aid materially in enforcing the narcotic drug laws of the United States.

Under subdivision (a) of section 3 the Federal Narcotics Control Board established by the narcotic drugs import and export act is abolished, and all of the authority, powers, and functions of the board are vested in the commissioner of narcotics. The Federal Narcotics Control Board as now established is composed of the Secretary of State, the Secretary of the Treasury, and the Secretary of Commerce, and it is believed that a better administration of the narcotic drugs import and export act will be effected by placing the responsibility upon one man, namely, the commissioner of narcotics.

Under the act entitled "An act to create a Bureau of Customs and a Bureau of Prohibition in the Department of the Treasury," approved March 3, 1927, the administration of all laws relating to narcotic drugs imposed upon the Commissioner of Internal Revenue his officers, and agents, was imposed upon the Secretary of the Treasury. He in turn was authorized to delegate any of such rights, privileges, powers, and duties upon the Commissioner of Prohibition. Subdivision (b) of section 3 authorizes the Secretary to confer or impose any of such rights, privileges, powers, and duties upon the

commissioner of narcotics or any officer or employee of the bureau of narcotics. Your committee believes that the Secretary should be charged with full responsibility in administering such laws, but that he should be relieved from the necessity of personal action. This section of the bill does not increase or diminish any of the rights, privileges, powers, or duties under existing law but merely permits the Secretary of the Treasury to designate the officers upon whom they are conferred or imposed. Consequently, the powers of any officer of the bureau of narcotics under this subdivision must be derived directly from the Secretary of the Treasury rather than from the statute. The Secretary of the Treasury, however, can not delegate greater power than is conferred upon him under the bill.

Under subdivision (c) of section 3 the office of deputy commissioner in charge of narcotics of the Bureau of Prohibition is abolished and the Secretary of the Treasury is authorized to transfer to the bureau of narcotics such personnel, except the Commissioner of Prohibition the assistant commissioner, and the deputy commissioner in charge of prohibition, and such records and office equipment, as may be necessary for the exercise by the bureau of narcotics of the functions vested in it.

Subdivision (d) of section 3 authorizes the transfer of unexpended balances of appropriation from the Bureau of Prohibition to the bureau of narcotics. Subdivision (e) provides for the continuing in effect of orders, rules, and regulations with respect to laws relating to narcotic drugs issued by the Commissioner of Prohibition or the Federal Narcotics Control Board. Subdivision (f) provides for the transfer of pending proceedings, investigations, and other matters in the Bureau of Prohibition and the Federal Narcotics Control Board to the bureau of narcotics.

The effect of subdivision (a) of section 4 is to merely change the name of the narcotics division in the office of the Surgeon General of the United States Public Health Service to the division of mental hygiene and to provide that the medical officer in charge of such division shall have the rank and receive the pay and allowances of an Assistant Surgeon General.

Subdivision (b) authorizes the Surgeon General of the Public Health Service to make studies and investigations of the abusive use of all narcotic drugs and of the quantities of certain narcotic drugs which are necessary to supply the normal and emergency medical and scientific requirements of the United States and of the causes, prevalence, and means for the prevention and treatment of mental and nervous diseases. He is required to report to the Secretary of the Treasury on or before the first day of September in each year results of his investigations. Such results are to be made available to the commissioner of narcotics to be used by him in determining the amounts of crude opium and coca leaves to be imported under the narcotic drugs import and export act.

Subdivision (c) authorizes the appointment by the Secretary of the Treasury of such professional, technical, and clerical assistants as may be necessary to aid the Surgeon General in making such studies and investigations. The number of such personnel, of course, will be limited by appropriations made therefor.

Section 5 provides for an appeal from the commissioner of narcotics to the Secretary of the Treasury.

Section 6 amends the definition of "narcotic drug" for the purposes of the narcotic drugs import and export act in order to permit the importation into this country of decocainized coca leaves. The reasons for this provision are stated elsewhere in this report.

In order to aid the Secretary of State in discharging international obligations of the United States concerning the traffic in narcotic drugs, the Secretary of the Treasury, under section 7 of the bill, is authorized to cooperate with the Secretary of State.

Under section 8 the proposed bill, if it becomes a law, will not be effective until the expiration of 30 days after its enactment. This provision is intended to grant sufficient time to effect the various transfers.

In compliance with paragraph 2a of Rule XIII of the Rules of the House of Representatives, changes in existing law made by section 6 of the bill are shown as follows: Existing law proposed to be omitted is inclosed in black brackets; new matter is printed in italics; existing law in which no change is proposed is shown in roman.

(a) The term "narcotic drug" means [opium, coca leaves, cocaine,] opium or coca leaves, or any compound, manufacture, salt, derivative, or preparation [of opium, coca leaves, or cocaine] thereof, except that such term shall not include (1) coca leaves which do not contain cocaine, ecgonine, or any salt, derivative, or preparation from which cocaine or ecgonine may be synthesized or made; or (2) any salt, derivative, or preparation of coca leaves which does not contain cocaine, ecgonine, or any ingredient or ingredients from which cocaine or ecgonine may be synthesized or made;

O