HEARING OF THE SENATE FINANCE COMMITTEE on METHAMPHETAMINE SUPPLY CHAIN DISRUPTION
SEN. BAUCUS: The hearing will come to order. Abraham Lincoln said, "Always bear in mind that your own resolution to succeed is more important than any one thing." Lincoln's words apply among so many areas, among so many ways, especially to the fight to get rid of methamphetamine.
In my own state of Montana, I've seen meth ruin lives, destroy families. Montana State law enforcement and child protective agencies are struggling to keep up with the influx of drug-endangered children. The majority of the Montana foster care placements are meth related. In the fight against meth, our resolution to succeed is so important.
It is one year after enactment of the Combat Methamphetamine Epidemic Act, and there is evidence that we are making progress. The Combat Meth Act imposed limits on the sale of medicines containing ephedrine and pseudo-ephedrine -- those are the most important chemicals that can be converted into meth, and the Act required that purchasers provide identification and sign a sales log.
Starting last year, retail sellers have been required to keep these products behind the counter or in locked cases, and the retailers have had to register online. And probably, as a result, last year meth lab seizures declined 42 percent nationwide. The Combat Meth Act is disrupting supply and we are proud to have co- sponsored the law. We now must do more.
And I might say, parenthetically, that in our state Montana -- our first witness, Mr. Tom Siebel, will, I'm sure, explain efforts that Montana is undertaking -- and especially that he has undertaken in a very dramatic way -- focused primarily on teens to reduce first- time use of methamphetamine. And we do think, in our state that thanks largely to Mr. Siebel and his efforts, that we're making some progress.
Meth, however, is still the number one law enforcement problem in the nation. The National Association of Counties found that meth is the number one illegal drug problem for 47 percent of the counties in the country -- 21 percent said cocaine, 22 percent said marijuana. More counties cited meth than cocaine and marijuana combined. Four out of five county sheriffs report that local meth production is down, but meth abuse is not. Half of the nation's sheriffs report that the abuse of the drug has stayed the same, and nearly a third say it has increased.
Meth users are changing. Three-fifths of the nation's sheriffs report increased meth use by women, and half of the nation's sheriffs report increased use by teens. According to a "Methamphetamine in Montana 2007" report, half of the adults in Montana prisons are there because of a meth-related crime. Meth is still far too readily available.
Last September, this committee heard testimony on the significant reduction in the number of local "mom and pop" meth labs. That was because of restrictions on the sale of products containing ephedrine and pseudo-ephedrine. Today, we'll continue our conversation about the meth education, meth prevention, and compliance with the requirements to keep meth behind the counter.
But now an estimated 80 percent of meth consumed in the United States originates in Mexico, it is smuggled in. And so today we'll hear how federal, state and local law enforcement are collaborating to shut down meth smuggling at the border. And we'll hear of efforts to control the legally-produced chemicals that are used for meth production.
The fight against meth is not over. We need to continue meth education, prevention and treatment, and we need to redouble our resolve to break the meth supply chain at the border. In the battle against meth, we must maintain our resolution to succeed. That resolution remains vitally important. And with that resolution, let us bring an end to the problem of methamphetamine.
Senator Grassley.
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SEN. BAUCUS: You bet. Thanks, Senator Grassley.
And now I'd like to introduce our witnesses. It is my pleasure to introduce Mr. Tom Siebel, Chairman of the Meth Project in Palo Alto, California and founder of the Montana Meth Project in Missoula, Montana. The Montana Meth Project and its hard-hitting media campaign make a real difference in my home state, and I wish everybody here could see it. I see many of the witnesses nodding -- I think they have seen it.
I think they'll probably agree.
If we could have that nationwide, I think it would have some effect. They deserve much credit for the positive shift those ads do in attitudes and behavior about meth, at least in my home state, and I commend Mr. Siebel for that effort. Arizona, Idaho and Illinois also have Meth Projects.
We'll next hear from Peter Wolfgram. Thank you, Peter, for making the trip. He's president and chief executive officer of Bungalow Drug in Belgrade, Montana. He'll testify on behalf of the National Association of Chain Drug Stores. He'll also talk about compliance with requirements to keep pseudaphedrine products behind the counter. And thanks again for making the trip.
Following Mr. Wolfgram, we'll hear from Gary Kendall, director of Iowa Governor's Office of Drug Control Policy from Des Moines, Iowa. He'll talk about how the Combat Meth Act has had an impact in his home state.
Then we have Joseph Rannazzisi, deputy assistant administrator at the Drug Enforcement Administration. He'll speak about meth law enforcement developments and the international diversion of meth precursor chemicals.
Next, Christy McCampbell. She is the deputy assistant secretary at the State Department's Bureau of International Narcotics and Law Enforcement Affairs, and she'll discuss international drug control conventions and trade in meth precursor chemicals.
And finally, Matthew Allen, deputy assistant director of the Office of Investigations at Immigration and Customs Enforcement. He will discuss a recently completed bilateral strategic plan for the United States and Mexico to expand their cooperation in law enforcement, trade and border management.
Thank you all for coming. I ask all witnesses to summarize their statements in five minutes, and their full statements will automatically be included in the record.
Mr. Siebel, you're first.
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SEN. BAUCUS: I think in Kansas, it probably went up. But at any rate -- and Ms. McCampbell, you have probably the most impressive resume of anybody I've ever read about in your chosen field. You are the recipient of the Jack Kerrigan Award, and you have a bachelor -- a BS degree in criminal justice, master's degree, juris doctorate degree from San Francisco Law School -- we'll forgive you for that -- a graduate of the FBI National Academy. I don't see anything here that you haven't done.
I've got a question for you, and I've got a question for you and Mr. Kendell. Mr. Kendell, you have 99 counties in Iowa and you have really beefed up on your security. And you indicate that there is some federal justice funding. What percent of that funding of that security program that you have -- maybe that's the wrong way to put -- is based on federal funding? Do -- can you just -- can you give me a ballpark figure?
MR. KENDELL: This year, we put the largest percentage, so it's probably -- I'm going to say 70 percent of our Byrne/JAG Award into the Multijurisdictional Drug Task Force. We combined that with a state appropriation -- this year -- of approximately $1 million, and then there's a 25 percent local match of local dollars. So that's the --
SEN. BAUCUS: So it's $1 million.
MR. KENDELL: That's the state appropriation.
SEN. BAUCUS: Oh, I'm sorry.
MR. KENDELL: Two-point-nine million (dollars), I believe, is our Byrne/JAG money that is accessible.
SEN. BAUCUS: So it's about $3 million.
MR. KENDELL: Yes.
SEN. BAUCUS: And you've seen some real improvement in that -- with that program, obviously.
MR. KENDELL: Well, actually, it's something that has been cut over the past five years. We've had a 50 percent cut in the federal funds available for that program, so really right now, it's a skeleton of what it was five years ago --
SEN. BAUCUS: But the skeleton's been effective.
MR. KENDELL: It's been effective, and the -- you know, locals continue to do more with less, and that's --
SEN. BAUCUS: But with more funding, you could be more effective.
MR. KENDELL: Absolutely.
SEN. BAUCUS: All right. That's pretty much understood by everybody that comes to Washington.
I've got a bill -- S. 551. It is co-sponsored by Mr. Nelson, Mr. Hagel, Mr. Isakson, Mr. Cochran and Mr. Salazar, but he doesn't know it yet. And it would provide a tax credit to improve security measures at sites where agriculture chemicals are stored. Qualified chemical security expenditures include tagging, blocking tank valves and chemical additives to prevent the theft of specific agriculture chemicals or to render such chemicals unfit for illegal use. Any business eligible for the tax credit include those that sell ag products, including specified agriculture chemicals at retail predominantly to farmers and ranchers or businesses that manufacture, formulate or distribute or airily apply agriculture chemicals. My question to you, Mr. Kendell -- Mr. Director -- do you think this legislation would assist in further reducing the number of meth labs?
The answer's yes. (Laughter.)
MR. KENDELL: Yes. (Chuckles.) I think it definitely would. That's one of the things that Iowa's done over the last four years, is taking congressionally directed funding and used it to purchase tank locks for anhydrous tanks. And I think that, combined with the precursor chemicals -- I mentioned that our reduction of meth labs is right around 90 percent right now, and that's higher than the national average. I think there's clearly something more going on than the precursor controls in Iowa and I think programs like the tank lock program and calcium nitrate are part of that.
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