Youth Smoking Prevention Act of 1995

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Youth Smoking Prevention Act of 
1995''.

SEC. 2. AUTHORITY TO REGULATE TOBACCO AND OTHER PRODUCTS CONTAINING 
              NICOTINE.

    (a) Food and Drug Administration.--The Secretary of Health and 
Human Services does not have any authority under--
            (1) the Federal Food, Drug, and Cosmetic Act,
            (2) the Federal Cigarette Labeling and Advertising Act, or
            (3) the Comprehensive Smokeless Tobacco Health Education 
        Act of 1986,
to regulate the manufacture, labeling, sale, distribution, and 
advertising and promotion of tobacco and other tobacco products 
containing nicotine.
    (b) Federal Authority.--The Federal authority to regulate the sale, 
distribution, and advertising and promotion of tobacco and other 
tobacco products containing nicotine is established as a condition to 
the receipt by States of the Federal preventive health and health 
services block grant.

SEC. 3. REGULATION OF STATE AUTHORITY.

    (a) In General.--Section 1926(a)(1) of the Public Health Service 
Act (42 U.S.C. sec. 300x-26(a)(1)) is amended to read as follows:
            ``(1) In general.--Subject to paragraph (2), for fiscal 
        year 1997 and subsequent fiscal years, the Secretary may make a 
        grant under section 1921 only if the State involved has in 
        effect a law which provides the following:
                    ``(A) Minors.--
                            ``(i) Sales.--It shall be unlawful to sell 
                        tobacco and other tobacco products containing 
                        nicotine to an individual under the age of 18. 
                        Tobacco and other tobacco products containing 
                        nicotine may be sold only to individuals who 
                        present a document containing the individual's 
                        photograph and date of birth. Any person who 
                        violates this paragraph shall be fined in the 
                        amount that a person who sells alcoholic 
                        beverages to a minor is fined under State law.
                            ``(ii) Purchase.--It shall be unlawful for 
                        an individual under the age of 18 to purchase 
                        any tobacco and other tobacco product 
                        containing nicotine. Any individual who 
                        violates this paragraph for the first time 
                        shall be fined not more than $100, required to 
                        perform community service, or required to 
                        attend education and training in the hazards of 
                        smoking. Any individual who violates this 
                        paragraph more than once shall be fined not 
                        more than $100, required to perform community 
                        service, and required to attend education and 
                        training in the hazards of smoking. Such 
                        education and training shall be funded by the 
                        fines collected under this paragraph.
                            ``(iii) Identification.--It shall be 
                        unlawful for an individual to present 
                        identification for the purchase of tobacco and 
                        other tobacco products containing nicotine 
                        which is false. Any individual who violates 
                        this paragraph shall be fined not more than 
                        $250, required to perform community service, 
                        and required to attend education and training 
                        in the hazards of smoking.
                    ``(B) Sales of specific products.--It shall be 
                unlawful to sell--
                            ``(i) individual cigarettes, and
                            ``(ii) packages of cigarettes which contain 
                        less than 20 cigarettes.
                Any person who violates this subsection shall be fined 
                in the amount that a person who sells alcoholic 
                beverages to a minor is fined under State law.
                    ``(C) Vending machines.--No person, firm, 
                partnership, company, or corporation shall operate a 
                vending machine which dispenses cigarettes or smokeless 
                tobacco products unless such vending machine is in a 
                location that is in plain view and under the direct 
                supervision and control of the individual in charge of 
                the location or such individual's designated agent or 
                employee, except that this subparagraph shall not apply 
                in the case of a vending machine that is located--
                            ``(i) at a private club; 
                            ``(ii) at a bar or bar area of a food 
                        service establishment;
                            ``(iii) at a factory, warehouse, tobacco 
                        business, or any other place of employment 
                        which has an insignificant portion of its 
                        regular workforce comprised of individuals 
                        under the age of 18 years and only if such 
                        machines are located in an area that is not 
                        accessible to the general public;
                            ``(iv) in any place if the vending machine 
                        is equipped with a device which controls the 
                        sale of tobacco products from the machine to 
                        individuals under the age of 18; or
                            ``(v) in such other location or made 
                        available in another manner that is expressly 
                        permitted under applicable State law.
                    ``(D) Self-service displays.--It shall be unlawful 
                to make tobacco and other tobacco products containing 
                nicotine available to individuals under the age of 18 
                in self-service displays which are not under the 
                supervision of an individual over the age of 18. Any 
                person who violates this subsection shall be fined in 
                the amount that a person who sells alcoholic beverages 
                to a minor is fined under State law.
                    ``(E) Samples.--It shall be unlawful to distribute 
                free samples of tobacco and other tobacco products 
                containing nicotine to individuals under the age of 18 
                through the mail or otherwise. Any person who violates 
                this subparagraph shall be fined in the amount that a 
                person who sells alcoholic beverages to a minor is 
                fined under State law.
                    ``(F) Use of mail.--It shall be unlawful to 
                distribute tobacco and other tobacco products 
                containing nicotine through the mail to individuals 
                under the age of 18. Such tobacco products when 
                distributed through the mails is nonmailable matter and 
                such distribution shall be penalized in accordance with 
                chapter 30 of title 39, United States Code.
                    ``(G) General requirements applicable to sales.--
                Tobacco and other tobacco products containing nicotine 
                which are offered for sale at retail must be in the 
                sight and control of the person responsible for making 
                the sales. Any person offering such products for sale 
                at retail shall post, in accordance with regulations of 
                the State, signs stating the minimum purchase age, 
                stating health warnings, and stating the penalties for 
                violations of the requirements of this paragraph. Any 
                person who violates this subparagraph shall be fined in 
                the amount that a person who sells alcoholic beverages 
                to a minor is fined under State law.
                    ``(H) Notice to employees.--Each owner of a retail 
                establishment which sells tobacco and other tobacco 
                products containing nicotine shall notify each 
                individual employed in the establishment as a retail 
                sales clerk that the sale of tobacco and such products 
                to individuals under the age of 18 and the purchase by 
                such individuals of tobacco and such products are 
                prohibited. Such notice shall be provided to such an 
                employee before such employee begins work as a retail 
                sales clerk or if such work has been begun, within 30 
                days of the date of the enactment of this paragraph. 
                Such an employee shall sign a form stating that such 
employee has been notified of the prohibited acts. Such an owner shall 
retain such forms and make them available to persons conducting 
inspections under this paragraph. An owner who fails to make such 
notice or retain such a form shall be fined not less than $100 and not 
more than $250.
                    ``(I) Licenses.--No person may engage in the retail 
                sale of cigarettes without a license issued for such 
                purpose by the State. The license shall be--
                            ``(i) issued in accordance with such 
                        system,
                            ``(ii) issued for such fee, and
                            ``(iii) issued for such term,
                as the State shall establish. The State shall establish 
                penalties (including loss of license) for sales without 
                a license and other sales in violation of this 
                paragraph.
                    ``(J) State responsibilities.--The State shall 
                conduct annual random unannounced inspections of over-
                the-counter and vending machine outlets for the sale of 
                tobacco and other tobacco products containing nicotine 
                to assure that sales of tobacco and other tobacco 
                products containing nicotine are being made in 
                accordance with this paragraph so that individuals 
                under the age of 18 do not have access to tobacco and 
                other tobacco products containing nicotine.
                    ``(K) Advertising.--
                            ``(i) Billboards.--Billboards which 
                        advertise tobacco and other tobacco products 
                        containing nicotine may not be placed within 
                        the line of sight of any individual in a school 
                        or in an area designated as a playground.
                            ``(ii) Brand names and logos.--The brand 
                        name or logo of a manufacturer of tobacco and 
                        other tobacco products containing nicotine may 
                        not be placed on any item marketed specifically 
                        to minors, including toys and video games.''.
    (b) Conforming Amendments.--Section 1926 of the Public Health 
Service Act (42 U.S.C. sec. 300x-26) is amended--
            (1) in subsection (a)(2), by striking ``1993'' and 
        inserting ``1997'';
            (2) in subsection (a)(2), by striking ``1994'' and 
        inserting ``1998''; and
            (3) in subsection (a)(2), by striking ``1995'' and 
        inserting ``1999'';
            (4) in subsection (d)(1), by striking ``1995'' and 
        inserting ``1999''; and
            (5) in subsection (d)(2), by striking ``1994'' and 
        inserting ``1998''.
    (c) Noncompliance.--Section 1926(c) of the Public Health Service 
Act (42 U.S.C. sec. 300x-26(c)) is amended--
            (1) in paragraph (1), by striking ``10 percent'' and 
        inserting ``20 percent'';
            (2) in paragraph (2), by striking ``20 percent'' and 
        inserting ``40 percent'';
            (3) in paragraph (3), by striking ``30 percent'' and 
        inserting ``60 percent''; and
            (4) in paragraph (4), by striking ``40 percent'' and 
        inserting ``80 percent''.
    (d) Enforcement.--Section 1926 of the Public Health Service Act (42 
U.S.C. sec. 300x-26) is amended by adding at the end thereof the 
following:
    ``(e) Enforcement.--Any amounts made available to a State through a 
grant under section 1921 may be used to enforce the laws described in 
subsection (a).''.

SEC. 4. REPORT.

    The Secretary of Health and Human Services shall make an annual 
report to the Congress on the actions taken by the States in compliance 
with section 1926(a)(1) of the Public Health Service Act as amended by 
section 3.

Summary: Youth Smoking Prevention Act of 1995 - Declares that the Secretary of Health and Human Services does not have any authority under the Federal Food, Drug, and Cosmetic Act, the Federal Cigarette Labeling and Advertising Act, or the Comprehensive Smokeless Tobacco Health Education Act of 1986 to regulate the manufacture, labeling, sale, distribution, and advertising and promotion of tobacco and other tobacco products containing nicotine. Establishes the Federal authority to regulate the sale, distribution, and advertising and promotion of tobacco and tobacco products containing nicotine as a condition to the receipt by State of the Federal preventive health and health services block grant. Amends the Public Health Service Act to prohibit or reduce the amount of block grants for the prevention and treatment of substance abuse based on whether a State has a law prohibiting: (1) sale of tobacco or tobacco products to individuals under the age of 18, (2) purchase of those materials by such individuals. (3) use of false identification for the purchase of those materials. (4) sale of individual cigarettes and packages of fewer than 20 cigarettes. (5) operation of a vending machine dispensing such materials unless specified requirements are met, (6) use of unsupervised self-service displays, (7) distribution of free samples to such individuals. And (8) distribution through the mail to such individuals. Sets forth general requirements regarding the sale of such materials and related notice by the owner to the employees of a retail establishment. Prohibits engaging in the retail sale of cigarettes without a license issued by the State. Sets forth State responsibilities. Regulates billboard advertising. Prohibits the placement of a tobacco manufacturer's brand name or logo on any item marketed specifically to minors, including toys and video games. Allows use of amounts available under such block grants to enforce the laws described in this Act.