Testimony is presented by Chicago and Illinois public and law enforcement officials as well as by Federal law enforcement agents based in the Chicago region. Local officials report that the availability of drugs in the Chicago area has increased, with youth gangs distributing much of it. The purity of the heroin and cocaine coming into Chicago from the east and the west has also increased. Law enforcement officials indicate difficulty in penetrating youth gangs with undercover agents and complain that State laws prevent effective electronic surveillance. A number of witnesses identify jail and prison overcrowding as an obstacle to the effective processing of drug offenders, since judges are reluctant to imprison them because of space limitations. Cooperation between local, State, and Federal officials is generally satisfactory, but more resources are requested. Testimony also covers money laundering and an improved strategy for gaining forfeiture of drug offenders' assets.