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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4698 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4698

 To terminate price support and marketing quotas for tobacco, disallow 
 the income tax deduction for certain advertising expenses for tobacco 
products, and to establish a trust fund to support anti-drugs and anti-
                        tobacco use activities.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 30, 1994

    Ms. English of Arizona introduced the following bill; which was 
  referred jointly to the Committees on Agriculture, Ways and Means, 
              Energy and Commerce, and Education and Labor

_______________________________________________________________________

                                 A BILL

 
 To terminate price support and marketing quotas for tobacco, disallow 
 the income tax deduction for certain advertising expenses for tobacco 
products, and to establish a trust fund to support anti-drugs and anti-
                        tobacco use activities.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TERMINATION OF TOBACCO PRICE SUPPORT AND MARKETING QUOTAS.

    (a) Termination of Tobacco Price Support.--The Agricultural Act of 
1949 (7 U.S.C. 1421 et seq.) is amended--
            (1) in section 101 (7 U.S.C. 1441)--
                    (A) in subsection (a), by striking ``tobacco 
                (except as otherwise provided herein), corn,'' and 
                inserting ``corn'';
                    (B) by striking subsection (c); and
                    (C) in subsection (d)(3), by striking ``, except 
                tobacco,'';
            (2) by striking section 106 (7 U.S.C. 1445);
            (3) by striking section 106A (7 U.S.C. 1445-1);
            (4) by striking section 106B (7 U.S.C. 1445-2); and
            (5) in section 408 (7 U.S.C. 1428)--
                    (A) in subsection (c), by striking ``tobacco,''; 
                and
                    (B) in subsection (d), by adding before the period 
                at the end the following: ``or tobacco''.
    (b) Termination of Tobacco Marketing Quotas.--Part I (sections 311 
through 320B) of subtitle B of title III of the Agricultural Adjustment 
Act of 1938 (7 U.S.C. 1311-1316) is repealed.
    (c) Conforming Amendments.--(1) Section 3 of Public Law 98-59 (7 
U.S.C. 625) is repealed.
    (2) The Agricultural Adjustment Act of 1938 is further amended--
            (A) in section 301(b) (7 U.S.C. 1301(b))--
                    (i) by striking paragraphs (3)(C), (10)(B), 
                (14)(B), (14)(C), (14)(D), (15), (16)(B), and (17);
                    (ii) in paragraph (6)(A), by striking ``tobacco,''
                    (iii) in the undesignated subparagraphs in 
                paragraph (7), by striking
                    ``Tobacco (flue-cured), July 1-June 30;
                    ``Tobacco (other than flue-cured), October 1-
                September 30;''
                    (iv) in paragraph (11)(B), by striking ``and 
                tobacco''; and
                    (v) in paragraph (12), by striking ``tobacco,'';
            (B) in section 303 (7 U.S.C. 1303), by striking ``rice, or 
        tobacco'' and inserting ``or rice''; and
            (C) in section 372(b) (7 U.S.C. 1372(b)), by striking 
        ``Except as provided in section 320B, the amount'' in the third 
        sentence and inserting ``The amount''.
    (3) Section 703 of Public Law 89-321 (7 U.S.C. 1316; 79 Stat. 1210) 
is amended by striking the second sentence.
    (4) The Act of July 12, 1952 (7 U.S.C. 1315; Chapter 709; 66 Stat. 
597), is repealed.
    (d) Effective Date and Application of Amendments.--The amendments 
made by this section shall take effect on January 1, 1995. Beginning on 
that date, the Secretary of Agriculture shall terminate all loan 
agreements entered into with tobacco producer associations under 
section 106A of the Agricultural Adjustment Act of 1938 and provide for 
the disposal of all funds in the No Net Cost Tobacco Fund of those 
associations and the No Net Cost Tobacco Account of the Commodity 
Credit Corporation.
    (e) Continued Liability of Producers.--An amendment made by this 
section shall not affect the liability of any person under any 
provision of law as in effect before the effective date of this 
section.

SEC. 2. DISALLOWANCE OF DEDUCTION FOR CERTAIN ADVERTISING EXPENSES FOR 
              TOBACCO PRODUCTS.

    (a) Deduction Disallowed.--Part IX of subchapter B of chapter 1 of 
the Internal Revenue Code of 1986 (relating to items not deductible) is 
amended by adding at the end the following new section:

``SEC. 280I. DISALLOWANCE OF DEDUCTION FOR CERTAIN ADVERTISING EXPENSES 
              FOR TOBACCO PRODUCTS.

    ``(a) In General.--No deduction otherwise allowable under this 
chapter shall be allowed for any amount paid or incurred as a consumer 
sales promotion for any tobacco product.
    ``(b) Consumer Sales Promotion.--For purposes of this section, the 
term `consumer sales promotion' means any of the following:
            ``(1) All radio and television commercials, newspaper and 
        magazine advertisements, billboards, posters, signs, decals, 
        matchbook advertising, advertising in movie theaters, and 
        point-of-purchase display material (except price information) 
        used for--
                    ``(A) promoting the sale of tobacco and tobacco 
                products, or
                    ``(B) informing or influencing the general public 
                (or any segment thereof) with respect to tobacco and 
                tobacco products.
            ``(2) Any of the following incurred or provided primarily 
        for purposes described in paragraph (1):
                    ``(A) Travel expenses (including meals and 
                lodging).
                    ``(B) Any amount attributable to goods or services 
                of a type generally considered to constitute 
                entertainment, amusement, or recreation or to the use 
                of a facility in connection with the providing of such 
                goods or services.
                    ``(C) Gifts.
                    ``(D) Other promotion expenses.
            ``(3) Advertising promotion allowances.
            ``(4) Premiums and samples.
            ``(5) Sponsorships of athletic, artistic, or other events 
        under the registered brand name of a tobacco product unless the 
        brand name is the name of a corporation in existence on July 1, 
        1994.
            ``(6) Marketing of nontobacco products or services bearing 
        the registered brand name or logo of a tobacco product unless 
        the brand name is the name of a corporation in existence on 
        July 1, 1994.
            ``(7) Displaying the registered brand name or logo of a 
        tobacco product on cars, boats, animals, or other sporting 
        equipment or on nontobacco products or services which are sold 
        unless the brand name is the name of a corporation in existence 
        on July 1, 1994.
            ``(8) Payment to have a registered brand name of a tobacco 
        product appear in a movie or play unless the brand name is the 
        name of a corporation in existence on July 1, 1994.
    ``(c) Tobacco Product.--For purposes of this section, the term 
`tobacco product' means cigarettes, cigars, smokeless tobacco, pipe 
tobacco, or any similar tobacco product. For purposes of the preceding 
sentence, the terms `cigarette', `cigar', and `smokeless tobacco' have 
the respective meanings given to such terms by section 5702.''
    (b) Conforming Amendment.--The table of sections for such part IX 
is amended by adding at the end thereof the following new item:

                              ``Sec. 280I. Disallowance of deduction 
                                        for certain advertising 
                                        expenses for tobacco 
                                        products.''
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.

SEC. 3. ESTABLISHMENT OF ANTI-TOBACCO USE TRUST FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 (relating to trust fund code) is amended by adding at the 
end the following new section:

``SEC. 9512. ANTI-TOBACCO USE TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Anti-Tobacco Use 
Trust Fund', consisting of such amounts as may be appropriated or 
credited to such Trust Fund as provided in this section or section 
9602(b).
    ``(b) Transfers to Trust Fund.--There is hereby appropriated to the 
Anti-Tobacco Use Trust Fund amounts equivalent to 50 percent of the 
increase in revenues to the Treasury attributable to section 280I 
(relating to disallowance of deduction for certain advertising expenses 
for tobacco products).
    ``(c) Anti-Drugs in Schools Account.--
            ``(1) In general.--There is established in the Anti-Tobacco 
        Use Trust Fund a separate account to be known as the `Anti-
        Drugs in Schools Account' consisting of such amounts as may be 
        transferred or credited to such account as provided in this 
        section or section 9602(b).
            ``(2) Transfers to account.--The Secretary of the Treasury 
        shall transfer to the Anti-Drugs in Schools Account amounts 
        equivalent to 50 percent of the amounts appropriated to the 
        Anti-Tobacco Use Trust Fund under subsection (b).
            ``(3) Expenditures from account.--Amounts in the Anti-Drugs 
        in Schools Account shall be available, as provided in 
        appropriation Acts, for making expenditures for purposes of 
        carrying out the programs developed under title V of the 
        Elementary and Secondary Education Act of 1965.
    ``(d) Anti-Tobacco Use Advertising Account.--
            ``(1) In general.--There is established in the Anti-Tobacco 
        Use Trust Fund a separate account to be known as the `Anti-
        Tobacco Use Advertising Account', consisting of such amounts as 
        may be transferred or credited to such account as provided in 
        this section or section 9602(b).
            ``(2) Transfers to account.--The Secretary of the Treasury 
        shall transfer to the Anti-Tobacco Use Advertising Account 
        amounts equivalent to 50 percent of the amounts appropriated to 
        the Anti-Tobacco Use Trust Fund under subsection (b).
            ``(3) Expenditures from account.--Amounts in the Anti-
        Tobacco Use Advertising Account shall be available, as provided 
        in appropriation Acts, for purposes of the program carried out 
        under section 1709 of the Public Health Service Act.''
    (b) Clerical Amendment.--The table of sections for such subchapter 
A is amended by adding at the end thereof the following new item:

                              ``Sec. 9512. Anti-Tobacco Use Trust 
                                        Fund.''

SEC. 4. ESTABLISHMENT OF ANTI-TOBACCO ADVERTISING CAMPAIGN.

    Title XVII of the Public Health Service Act (42 U.S.C. 300u et 
seq.) is amended by adding at the end the following section:

                ``anti-tobacco use advertising campaign

    ``Sec. 1709. With amounts available under section 9512(d) of the 
Internal Revenue Code of 1986 (relating to the Anti-Tobacco Use Trust 
Fund), the Secretary shall carry out a program of advertising to 
educate the public on the risks to health that result from the use of 
tobacco products.''.
                                 <all>
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