IB 

Union Calendar No. 60 

111TH CONGRESS 

1ST SESSION H. R. 1676 

[Report No. 111–117] 

To prevent tobacco smuggling, to ensure the collection of all tobacco taxes, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 23, 2009 

Mr. WEINER introduced the following bill; which was referred to the 

Committee on the Judiciary 

MAY 18, 2009 

Additional sponsors: Mr. SMITH of Texas, Mr. COHEN, and Mr. ISSA

MAY 18, 2009 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on March 23, 2009] 

A BILL 

To prevent tobacco smuggling, to ensure the collection of 

all tobacco taxes, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE; FINDINGS; PURPOSES. 

2 (a) SHORT TITLE.—This Act may be cited as the ‘‘Pre3 vent All Cigarette Trafficking Act of 2009’’ or ‘‘PACT Act’’. 

4 (b) FINDINGS.—Congress finds that— 

5 (1) the sale of illegal cigarettes and smokeless to6 bacco products significantly reduces Federal, State, 

7 and local government revenues, with Internet sales 

8 alone accounting for billions of dollars of lost Federal, 

9 State, and local tobacco tax revenue each year; 

10 (2) Hezbollah, Hamas, al Qaeda, and other ter11 rorist organizations have profited from trafficking in 

12 illegal cigarettes or counterfeit cigarette tax stamps; 

13 (3) terrorist involvement in illicit cigarette traf14 ficking will continue to grow because of the large 

15 profits such organizations can earn; 

16 (4) the sale of illegal cigarettes and smokeless to17 bacco over the Internet, and through mail, fax, or 

18 phone orders, make it cheaper and easier for children 

19 to obtain tobacco products; 

20 (5) the majority of Internet and other remote 

21 sales of cigarettes and smokeless tobacco are being 

22 made without adequate precautions to protect against 

23 sales to children, without the payment of applicable 

24 taxes, and without complying with the nominal reg25 istration and reporting requirements in existing Fed26 eral law; 


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1 (6) unfair competition from illegal sales of ciga2 rettes and smokeless tobacco is taking billions of dol3 lars of sales away from law-abiding retailers through4 out the United States; 

5 (7) with rising State and local tobacco tax rates, 

6 the incentives for the illegal sale of cigarettes and 

7 smokeless tobacco have increased; 

8 (8) the number of active tobacco investigations 

9 being conducted by the Bureau of Alcohol, Tobacco, 

10 Firearms, and Explosives rose to 452 in 2005; 

11 (9) the number of Internet vendors in the United 

12 States and in foreign countries that sell cigarettes 

13 and smokeless tobacco to buyers in the United States 

14 increased from only about 40 in 2000 to more than 

15 500 in 2005; and 

16 (10) the intrastate sale of illegal cigarettes and 

17 smokeless tobacco over the Internet has a substantial 

18 effect on interstate commerce. 

19 (c) PURPOSES.—It is the purpose of this Act to— 

20 (1) require Internet and other remote sellers of 

21 cigarettes and smokeless tobacco to comply with the 

22 same laws that apply to law-abiding tobacco retailers; 

23 (2) create strong disincentives to illegal smug24 gling of tobacco products; 


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1 (3) provide government enforcement officials 

2 with more effective enforcement tools to combat to3 bacco smuggling; 

4 (4) make it more difficult for cigarette and 

5 smokeless tobacco traffickers to engage in and profit 

6 from their illegal activities; 

7 (5) increase collections of Federal, State, and 

8 local excise taxes on cigarettes and smokeless tobacco; 

9 and 

10 (6) prevent and reduce youth access to inexpen11 sive cigarettes and smokeless tobacco through illegal 

12 Internet or contraband sales. 

13 SEC. 2. COLLECTION OF STATE CIGARETTE AND SMOKE14 LESS TOBACCO TAXES. 

15 (a) DEFINITIONS.—The Act of October 19, 1949 (15 

16 U.S.C. 375 et seq.; commonly referred to as the ‘‘Jenkins 

17 Act’’) (referred to in this Act as the ‘‘Jenkins Act’’), is 

18 amended by striking the first section and inserting the fol19 lowing: 

20 ‘‘SECTION 1. DEFINITIONS. 

21 ‘‘As used in this Act, the following definitions apply: 

22 ‘‘(1) ATTORNEY GENERAL.—The term ‘attorney 

23 general’, with respect to a State, means the attorney 

24 general or other chief law enforcement officer of the 

25 State, or the designee of that officer. 


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1 ‘‘(2) CIGARETTE.— 

2 ‘‘(A) IN GENERAL.—For purposes of this 

3 Act, the term ‘cigarette’ shall— 

4 ‘‘(i) have the same meaning given that 

5 term in section 2341 of title 18, United 

6 States Code; and 

7 ‘‘(ii) include ‘roll-your-own tobacco’ 

8 (as that term is defined in section 5702 of 

9 the Internal Revenue Code of 1986). 

10 ‘‘(B) EXCEPTION.—For purposes of this Act, 

11 the term ‘cigarette’ does not include a ‘cigar’, as 

12 that term is defined in section 5702 of the Inter13 nal Revenue Code of 1986. 

14 ‘‘(3) COMMON CARRIER.—The term ‘common car15 rier’ means any person (other than a local messenger 

16 service or the United States Postal Service) that holds 

17 itself out to the general public as a provider for hire 

18 of the transportation by water, land, or air of mer19 chandise, whether or not the person actually operates 

20 the vessel, vehicle, or aircraft by which the transpor21 tation is provided, between a port or place and a port 

22 or place in the United States. 

23 ‘‘(4) CONSUMER.—The term ‘consumer’ means 

24 any person that purchases cigarettes or smokeless to25 bacco, but does not include any person lawfully operVerDate Nov 24 2008 02:23 May 19, 2009 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H1676.RH H1676

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1 ating as a manufacturer, distributor, wholesaler, or 

2 retailer of cigarettes or smokeless tobacco. 

3 ‘‘(5) DELIVERY SALE.—The term ‘delivery sale’ 

4 means any sale of cigarettes or smokeless tobacco to 

5 a consumer if— 

6 ‘‘(A) the consumer submits the order for 

7 such sale by means of a telephone or other meth8 od of voice transmission, the mails, or the Inter9 net or other online service, or the seller is other10 wise not in the physical presence of the buyer 

11 when the request for purchase or order is made; 

12 or 

13 ‘‘(B) the cigarettes or smokeless tobacco are 

14 delivered to the buyer by common carrier, pri15 vate delivery service, or other method of re16 mote delivery, or the seller is not in the physical 

17 presence of the buyer when the buyer obtains pos18 session of the cigarettes or smokeless tobacco. 

19 ‘‘(6) DELIVERY SELLER.—The term ‘delivery 

20 seller’ means a person who makes a delivery sale. 

21 ‘‘(7) INDIAN COUNTRY.—The term ‘Indian coun22 try’ means— 

23 ‘‘(A) Indian country as defined in section 

24 1151 of title 18, United States Code, except that 

25 within the State of Alaska that term applies only 


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1 to the Metlakatla Indian Community, Annette 

2 Island Reserve; and 

3 ‘‘(B) any other land held by the United 

4 States in trust or restricted status for one or 

5 more Indian tribes. 

6 ‘‘(8) INDIAN TRIBE.—The term ‘Indian tribe’, 

7 ‘tribe’, or ‘tribal’ refers to an Indian tribe as defined 

8 in section 4(e) of the Indian Self-Determination and 

9 Education Assistance Act (25 U.S.C. 450b(e)) or as 

10 listed pursuant to section 104 of the Federally Recog11 nized Indian Tribe List Act of 1994 (25 U.S.C. 479a– 

12 1). 

13 ‘‘(9) INTERSTATE COMMERCE.—The term ‘inter14 state commerce’ means commerce between a State and 

15 any place outside the State, commerce between a 

16 State and any Indian country in the State, or com17 merce between points in the same State but through 

18 any place outside the State or through any Indian 

19 country. 

20 ‘‘(10) INTO A STATE, PLACE, OR LOCALITY.—A 

21 sale, shipment, or transfer of cigarettes or smokeless 

22 tobacco that is made in interstate commerce, as de23 fined herein, shall be deemed to have been made into 

24 the State, place or locality in which such cigarettes or 

25 smokeless tobacco are delivered. 


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1 ‘‘(11) PERSON.—The term ‘person’ means an in2 dividual, corporation, company, association, firm, 

3 partnership, society, State government, local govern4 ment, Indian tribal government, governmental orga5 nization of such government, or joint stock company. 

6 ‘‘(12) STATE.—The term ‘State’ means each of 

7 the several States of the United States, the District of 

8 Columbia, the Commonwealth of Puerto Rico, or any 

9 territory or possession of the United States. 

10 ‘‘(13) SMOKELESS TOBACCO.—The term ‘smoke11 less tobacco’ means any finely cut, ground, powdered, 

12 or leaf tobacco, or other product containing tobacco, 

13 that is intended to be placed in the oral or nasal cav14 ity or otherwise consumed without being combusted. 

15 ‘‘(14) TOBACCO TAX ADMINISTRATOR.—The term 

16 ‘tobacco tax administrator’ means the State, local, or 

17 tribal official duly authorized to collect the tobacco 

18 tax or administer the tax law of a State, locality, or 

19 tribe, respectively. 

20 ‘‘(15) TRIBAL ENTERPRISE.—The term ‘tribal 

21 enterprise’ means any business enterprise, incor22 porated or unincorporated under Federal or tribal 

23 law, of an Indian tribe or group of Indian tribe. 

24 ‘‘(16) USE.—The term ‘use’, in addition to its 

25 ordinary meaning, means the consumption, storage, 


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1 handling, or disposal of cigarettes or smokeless to2 bacco.’’. 

3 (b) REPORTS TO STATE TOBACCO TAX ADMINISTRA4 TORS.—Section 2 of the Jenkins Act (15 U.S.C. 376) is 

5 amended— 

6 (1) by striking ‘‘cigarettes’’ each place it appears 

7 and inserting ‘‘cigarettes or smokeless tobacco’’; 

8 (2) in subsection (a)— 

9 (A) in the matter preceding paragraph 

10 (1)— 

11 (i) by inserting ‘‘CONTENTS.—’’ after 

12 ‘‘(a)’’; 

13 (ii) by striking ‘‘or transfers’’ and in14 serting ‘‘, transfers, or ships’’; 

15 (iii) by inserting ‘‘, locality, or Indian 

16 country of an Indian tribe’’ after ‘‘a State’’; 

17 (iv) by striking ‘‘to other than a dis18 tributor licensed by or located in such 

19 State,’’; and 

20 (v) by striking ‘‘or transfer and ship21 ment’’ and inserting ‘‘, transfer, or ship22 ment’’; 

23 (B) in paragraph (1)— 

24 (i) by striking ‘‘with the tobacco tax 

25 administrator of the State’’ and inserting 


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1 ‘‘with the Attorney General of the United 

2 States and with the tobacco tax administra3 tors of the State and place’’; and 

4 (ii) by striking ‘‘; and’’ and inserting 

5 the following: ‘‘, as well as telephone num6 bers for each place of business, a principal 

7 electronic mail address, any website ad8 dresses, and the name, address, and tele9 phone number of an agent in the State au10 thorized to accept service on behalf of such 

11 person;’’; 

12 (C) in paragraph (2), by striking ‘‘and the 

13 quantity thereof.’’ and inserting ‘‘the quantity 

14 thereof, and the name, address, and phone num15 ber of the person delivering the shipment to the 

16 recipient on behalf of the delivery seller, with all 

17 invoice or memoranda information relating to 

18 specific customers to be organized by city or 

19 town and by zip code; and’’; and 

20 (D) by adding at the end the following: 

21 ‘‘(3) with respect to each memorandum or in22 voice filed with a State under paragraph (2), also file 

23 copies of such memorandum or invoice with the to24 bacco tax administrators and chief law enforcement 

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1 erating within the borders of the State that apply 

2 their own local or tribal taxes on cigarettes or smoke3 less tobacco.’’; 

4 (3) in subsection (b)— 

5 (A) by inserting ‘‘PRESUMPTIVE EVI6 DENCE.—’’ after ‘‘(b)’’; 

7 (B) by striking ‘‘(1) that’’ and inserting 

8 ‘‘that’’; and 

9 (C) by striking ‘‘, and (2)’’ and all that fol10 lows and inserting a period; and 

11 (4) by adding at the end the following: 

12 ‘‘(c) USE OF INFORMATION.—A tobacco tax adminis13 trator or chief law enforcement officer who receives a memo14 randum or invoice under paragraph (2) or (3) of subsection 

15 (a) shall use such memorandum or invoice solely for the 

16 purposes of the enforcement of this Act and the collection 

17 of any taxes owed on related sales of cigarettes and smoke18 less tobacco, and shall keep confidential any personal infor19 mation in such memorandum or invoice not otherwise re20 quired for such purposes.’’. 

21 (c) REQUIREMENTS FOR DELIVERY SALES.—The Jen22 kins Act is amended by inserting after section 2 the fol23 lowing: 


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1 ‘‘SEC. 2A. DELIVERY SALES. 

2 ‘‘(a) IN GENERAL.—With respect to delivery sales into 

3 a specific State and place, each delivery seller shall comply 

4 with— 

5 ‘‘(1) the shipping requirements set forth in sub6 section (b); 

7 ‘‘(2) the recordkeeping requirements set forth in 

8 subsection (c); 

9 ‘‘(3) all State, local, tribal, and other laws gen10 erally applicable to sales of cigarettes or smokeless to11 bacco as if such delivery sales occurred entirely with12 in the specific State and place, including laws impos13 ing— 

14 ‘‘(A) excise taxes; 

15 ‘‘(B) licensing and tax-stamping require16 ments; 

17 ‘‘(C) restrictions on sales to minors; and 

18 ‘‘(D) other payment obligations or legal re19 quirements relating to the sale, distribution, or 

20 delivery of cigarettes or smokeless tobacco; and 

21 ‘‘(4) the tax collection requirements set forth in 

22 subsection (d). 

23 ‘‘(b) SHIPPING AND PACKAGING.— 

24 ‘‘(1) REQUIRED STATEMENT.—For any shipping 

25 package containing cigarettes or smokeless tobacco, the 

26 delivery seller shall include on the bill of lading, if 


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1 any, and on the outside of the shipping package, on 

2 the same surface as the delivery address, a clear and 

3 conspicuous statement providing as follows: ‘CIGA4 RETTES/SMOKELESS TOBACCO: FEDERAL 

5 LAW REQUIRES THE PAYMENT OF ALL AP6 PLICABLE EXCISE TAXES, AND COMPLIANCE 

7 WITH APPLICABLE LICENSING AND TAX– 

8 STAMPING OBLIGATIONS’. 

9 ‘‘(2) FAILURE TO LABEL.—Any shipping pack10 age described in paragraph (1) that is not labeled in 

11 accordance with that paragraph shall be treated as 

12 nondeliverable matter by a common carrier or other 

13 delivery service, if the common carrier or other deliv14 ery service knows or should know the package con15 tains cigarettes or smokeless tobacco. If a common 

16 carrier or other delivery service believes a package is 

17 being submitted for delivery in violation of paragraph 

18 (1), it may require the person submitting the package 

19 for delivery to establish that it is not being sent in 

20 violation of paragraph (1) before accepting the pack21 age for delivery. Nothing in this paragraph shall re22 quire the common carrier or other delivery service to 

23 open any package to determine its contents. 

24 ‘‘(3) WEIGHT RESTRICTION.—A delivery seller 

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1 livered in any single sale or single delivery any ciga2 rettes or smokeless tobacco weighing more than 10 

3 pounds. 

4 ‘‘(4) AGE VERIFICATION.— 

5 ‘‘(A) IN GENERAL.—Notwithstanding any 

6 other provision of law, a delivery seller who 

7 mails or ships tobacco products— 

8 ‘‘(i) shall not sell, deliver, or cause to 

9 be delivered any tobacco products to a per10 son under the minimum age required for 

11 the legal sale or purchase of tobacco prod12 ucts, as determined by the applicable law at 

13 the place of delivery; 

14 ‘‘(ii) shall use a method of mailing or 

15 shipping that requires— 

16 ‘‘(I) the purchaser placing the de17 livery sale order, or an adult who is at 

18 least the minimum age required for the 

19 legal sale or purchase of tobacco prod20 ucts, as determined by the applicable 

21 law at the place of delivery, to sign to 

22 accept delivery of the shipping con23 tainer at the delivery address; and 

24 ‘‘(II) the person who signs to ac25 cept delivery of the shipping container 


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1 to provide proof, in the form of a valid, 

2 government-issued identification bear3 ing a photograph of the individual, 

4 that the person is at least the min5 imum age required for the legal sale or 

6 purchase of tobacco products, as deter7 mined by the applicable law at the 

8 place of delivery; and 

9 ‘‘(iii) shall not accept a delivery sale 

10 order from a person without— 

11 ‘‘(I) obtaining the full name, birth 

12 date, and residential address of that 

13 person; and 

14 ‘‘(II) verifying the information 

15 provided in subclause (I), through the 

16 use of a commercially available data17 base or aggregate of databases, con18 sisting primarily of data from govern19 ment sources, that are regularly used 

20 by government and businesses for the 

21 purpose of age and identity 

22 verification and authentication, to en23 sure that the purchaser is at least the 

24 minimum age required for the legal 

25 sale or purchase of tobacco products, as 


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1 determined by the applicable law at 

2 the place of delivery. 

3 ‘‘(B) LIMITATION.—No database being used 

4 for age and identity verification under subpara5 graph (A)(iii) shall be in the possession or under 

6 the control of the delivery seller, or be subject to 

7 any changes or supplementation by the delivery 

8 seller. 

9 ‘‘(c) RECORDS.— 

10 ‘‘(1) IN GENERAL.—Each delivery seller shall 

11 keep a record of any delivery sale, including all of the 

12 information described in section 2(a)(2), organized by 

13 the State, and within such State, by the city or town 

14 and by zip code, into which such delivery sale is so 

15 made. 

16 ‘‘(2) RECORD RETENTION.—Records of a delivery 

17 sale shall be kept as described in paragraph (1) in the 

18 year in which the delivery sale is made and for the 

19 next 4 years. 

20 ‘‘(3) ACCESS FOR OFFICIALS.—Records kept 

21 under paragraph (1) shall be made available to to22 bacco tax administrators of the States, to local gov23 ernments and Indian tribes that apply their own 

24 local or tribal taxes on cigarettes or smokeless tobacco, 

25 to the attorneys general of the States, to the chief law 


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1 enforcement officers of such local governments and In2 dian tribes, and to the Attorney General of the United 

3 States in order to ensure the compliance of persons 

4 making delivery sales with the requirements of this 

5 Act. 

6 ‘‘(d) DELIVERY.— 

7 ‘‘(1) IN GENERAL.—Except as provided in para8 graph (2), no delivery seller may sell or deliver to any 

9 consumer, or tender to any common carrier or other 

10 delivery service, any cigarettes or smokeless tobacco 

11 pursuant to a delivery sale unless, in advance of the 

12 sale, delivery, or tender— 

13 ‘‘(A) any cigarette or smokeless tobacco ex14 cise tax that is imposed by the State in which 

15 the cigarettes or smokeless tobacco are to be deliv16 ered has been paid to the State; 

17 ‘‘(B) any cigarette or smokeless tobacco ex18 cise tax that is imposed by the local government 

19 of the place in which the cigarettes or smokeless 

20 tobacco are to be delivered has been paid to the 

21 local government; and 

22 ‘‘(C) any required stamps or other indicia 

23 that such excise tax has been paid are properly 

24 affixed or applied to the cigarettes or smokeless 

25 tobacco. 


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1 ‘‘(2) EXCEPTION.—Paragraph (1) does not apply 

2 to a delivery sale of smokeless tobacco if the law of the 

3 State or local government of the place where the 

4 smokeless tobacco is to be delivered requires or other5 wise provides that delivery sellers collect the excise tax 

6 from the consumer and remit the excise tax to the 

7 State or local government, and the delivery seller 

8 complies with the requirement. 

9 ‘‘(e) LIST OF UNREGISTERED OR NONCOMPLIANT DE10 LIVERY SELLERS.— 

11 ‘‘(1) IN GENERAL.— 

12 ‘‘(A) INITIAL LIST.—Not later than 90 days 

13 after this subsection goes into effect under the 

14 Prevent All Cigarette Trafficking Act of 2009, 

15 the Attorney General of the United States shall 

16 compile a list of delivery sellers of cigarettes or 

17 smokeless tobacco that have not registered with 

18 the Attorney General, pursuant to section 2(a) or 

19 that are otherwise not in compliance with this 

20 Act, and— 

21 ‘‘(i) distribute the list to— 

22 ‘‘(I) the attorney general and tax 

23 administrator of every State; 

24 ‘‘(II) common carriers and other 

25 persons that deliver small packages to 


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1 consumers in interstate commerce, in2 cluding the United States Postal Serv3 ice; and 

4 ‘‘(III) at the discretion of the At5 torney General of the United States, to 

6 any other persons; and 

7 ‘‘(ii) publicize and make the list avail8 able to any other person engaged in the 

9 business of interstate deliveries or who de10 livers cigarettes or smokeless tobacco in or 

11 into any State. 

12 ‘‘(B) LIST CONTENTS.—To the extent 

13 known, the Attorney General of the United States 

14 shall include, for each delivery seller on the list 

15 described in subparagraph (A)— 

16 ‘‘(i) all names the delivery seller uses 

17 in the transaction of its business or on 

18 packages delivered to customers; 

19 ‘‘(ii) all addresses from which the de20 livery seller does business or ships cigarettes 

21 or smokeless tobacco; 

22 ‘‘(iii) the website addresses, primary e23 mail address, and phone number of the de24 livery seller; and 


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1 ‘‘(iv) any other information that the 

2 Attorney General determines would facili3 tate compliance with this subsection by re4 cipients of the list. 

5 ‘‘(C) UPDATING.—The Attorney General of 

6 the United States shall update and distribute the 

7 list at least once every 4 months, and may dis8 tribute the list and any updates by regular mail, 

9 electronic mail, or any other reasonable means, 

10 or by providing recipients with access to the list 

11 through a nonpublic website that the Attorney 

12 General of the United States regularly updates. 

13 ‘‘(D) STATE, LOCAL, OR TRIBAL ADDI14 TIONS.—The Attorney General of the United 

15 States shall include in the list under subpara16 graph (A) any noncomplying delivery sellers 

17 identified by any State, local, or tribal govern18 ment under paragraph (5), and shall distribute 

19 the list to the attorney general or chief law en20 forcement official and the tax administrator of 

21 any government submitting any such informa22 tion and to any common carriers or other per23 sons who deliver small packages to consumers 

24 identified by any government pursuant to para25 graph (5). 


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1 ‘‘(E) ACCURACY AND COMPLETENESS OF

2 LIST OF NONCOMPLYING DELIVERY SELLERS.—In 

3 preparing and revising the list required by sub4 paragraph (A), the Attorney General shall— 

5 ‘‘(i) use reasonable procedures to en6 sure maximum possible accuracy and com7 pleteness of the records and information re8 lied on for the purpose of determining that 

9 such delivery seller is noncomplying; 

10 ‘‘(ii) not later than 14 days prior to 

11 including any delivery seller on the list 

12 under paragraph (1), make a reasonable at13 tempt to send notice to the delivery seller by 

14 letter, electronic mail, or other means that 

15 the delivery seller is being placed on such 

16 list or update, with that notice citing the 

17 relevant provisions of this Act and the spe18 cific reasons for being placed on such list; 

19 ‘‘(iii) provide an opportunity to such 

20 delivery seller to challenge placement on 

21 such list; 

22 ‘‘(iv) investigate each such challenge by 

23 contacting the relevant Federal, State, trib24 al, and local law enforcement officials, and 

25 provide the specific findings and results of 


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1 such investigation to such delivery seller not 

2 later than 30 days after the challenge is 

3 made; and 

4 ‘‘(v) upon finding that any placement 

5 is inaccurate, incomplete, or cannot be 

6 verified, promptly delete such delivery seller 

7 from the list as appropriate and notify each 

8 appropriate Federal, State, tribal, and local 

9 authority of such finding. 

10 ‘‘(F) CONFIDENTIALITY.—The list distrib11 uted pursuant to subparagraph (A) shall be con12 fidential, and any person receiving the list shall 

13 maintain the confidentiality of the list but may 

14 deliver the list, for enforcement purposes, to any 

15 government official or to any common carrier or 

16 other person that delivers tobacco products or 

17 small packages to consumers. Nothing in this sec18 tion shall prohibit a common carrier, the United 

19 States Postal Service, or any other person receiv20 ing the list from discussing with the listed deliv21 ery sellers the delivery sellers’ inclusion on the 

22 list and the resulting effects on any services re23 quested by such listed delivery seller. 

24 ‘‘(2) PROHIBITION ON DELIVERY.— 


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1 ‘‘(A) IN GENERAL.—Commencing on the 

2 date that is 60 days after the date of the initial 

3 distribution or availability of the list under 

4 paragraph (1)(A), no person who receives the list 

5 under paragraph (1), and no person who delivers 

6 cigarettes or smokeless tobacco to consumers, 

7 shall knowingly complete, cause to be completed, 

8 or complete its portion of a delivery of any pack9 age for any person whose name and address are 

10 on the list, unless— 

11 ‘‘(i) the person making the delivery 

12 knows or believes in good faith that the item 

13 does not include cigarettes or smokeless to14 bacco; 

15 ‘‘(ii) the delivery is made to a person 

16 lawfully engaged in the business of manu17 facturing, distributing, or selling cigarettes 

18 or smokeless tobacco; or 

19 ‘‘(iii) the package being delivered 

20 weighs more than 100 pounds and the per21 son making the delivery does not know or 

22 have reasonable cause to believe that the 

23 package contains cigarettes or smokeless to24 bacco. 


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1 ‘‘(B) IMPLEMENTATION OF UPDATES.— 

2 Commencing on the date that is 30 days after 

3 the date of the distribution or availability of any 

4 updates or corrections to the list under para5 graph (1), all recipients and all common carriers 

6 or other persons that deliver cigarettes or smoke7 less tobacco to consumers shall be subject to sub8 paragraph (A) in regard to such corrections or 

9 updates. 

10 ‘‘(C) EXEMPTIONS.—Subparagraphs (A) 

11 and (B), subsection (b)(2), and any other re12 quirements or restrictions placed directly on 

13 common carriers elsewhere in this subsection, 

14 shall not apply to a common carrier that is sub15 ject to a settlement agreement relating to tobacco 

16 product deliveries to consumers or, if any such 

17 settlement agreement to which the common car18 rier was a party is terminated or otherwise be19 comes inactive, is administering and enforcing, 

20 on a nationwide basis, policies and practices 

21 that are at least as stringent as any such agree22 ment. For the purposes of this section, ‘settlement 

23 agreement’ shall be defined to include the Assur24 ance of Discontinuance entered into by the Attor25 ney General of New York and DHL Holdings 


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1 USA, Inc. and DHL Express (USA), Inc. on or 

2 about July 1, 2005, the Assurance of Discontinu3 ance entered into by the Attorney General of New 

4 York and United Parcel Service, Inc. on or about 

5 October 21, 2005, and the Assurance of Compli6 ance entered into by the Attorney General of New 

7 York and Federal Express Corporation and Fed 

8 Ex Ground package Systems, Inc. on or about 

9 February 3, 2006, so long as each is honored na10 tionwide to block illegal deliveries of cigarettes or 

11 smokeless tobacco to consumers, and also includes 

12 any other active agreement between a common 

13 carrier and the States that operates nationwide 

14 to ensure that no deliveries of cigarettes and 

15 smokeless tobacco shall be made to consumers for 

16 illegally operating Internet or mail-order sellers 

17 and that any such deliveries to consumers shall 

18 not be made to minors or without payment to 

19 the States and localities where the consumers are 

20 located of all taxes on the tobacco products. 

21 ‘‘(3) SHIPMENTS FROM PERSONS ON LIST.— 

22 ‘‘(A) IN GENERAL.—In the event that a 

23 common carrier or other delivery service delays 

24 or interrupts the delivery of a package it has in 

25 its possession because it determines or has reason 


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1 to believe that the person ordering the delivery is 

2 on a list distributed under paragraph (1)— 

3 ‘‘(i) the person ordering the delivery 

4 shall be obligated to pay— 

5 ‘‘(I) the common carrier or other 

6 delivery service as if the delivery of the 

7 package had been timely completed; 

8 and 

9 ‘‘(II) if the package is not deliver10 able, any reasonable additional fee or 

11 charge levied by the common carrier or 

12 other delivery service to cover its extra 

13 costs and inconvenience and to serve as 

14 a disincentive against such noncom15 plying delivery orders; and 

16 ‘‘(ii) if the package is determined not 

17 to be deliverable, the common carrier or 

18 other delivery service shall, in its discretion, 

19 either provide the package and its contents 

20 to a Federal, State, or local law enforcement 

21 agency or destroy the package and its con22 tents. 

23 ‘‘(B) RECORDS.—A common carrier or 

24 other delivery service shall maintain, for a pe25 riod of 5 years, any records kept in the ordinary 


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1 course of business relating to any deliveries in2 terrupted pursuant to this paragraph and pro3 vide that information, upon request, to the Attor4 ney General of the United States or to the attor5 ney general or chief law enforcement official or 

6 tax administrator of any State, local, or tribal 

7 government. 

8 ‘‘(C) CONFIDENTIALITY.—Any person re9 ceiving records under subparagraph (B) shall use 

10 such records solely for the purposes of the en11 forcement of this Act and the collection of any 

12 taxes owed on related sales of cigarettes and 

13 smokeless tobacco, and the person receiving 

14 records under subparagraph (B) shall keep con15 fidential any personal information in such 

16 records not otherwise required for such purposes. 

17 ‘‘(4) PREEMPTION.— 

18 ‘‘(A) IN GENERAL.—No State, local, or trib19 al government, nor any political authority of 2 

20 or more State, local, or tribal governments, may 

21 enact or enforce any law or regulation relating 

22 to delivery sales that restricts deliveries of ciga23 rettes or smokeless tobacco to consumers by com24 mon carriers or other delivery services on behalf 

25 of delivery sellers by— 


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1 ‘‘(i) requiring that the common carrier 

2 or other delivery service verify the age or 

3 identity of the consumer accepting the deliv4 ery by requiring the person who signs to ac5 cept delivery of the shipping container to 

6 provide proof, in the form of a valid, gov7 ernment-issued identification bearing a 

8 photograph of the individual, that such per9 son is at least the minimum age required 

10 for the legal sale or purchase of tobacco 

11 products, as determined by either State or 

12 local law at the place of delivery; 

13 ‘‘(ii) requiring that the common car14 rier or other delivery service obtain a signa15 ture from the consumer accepting the deliv16 ery; 

17 ‘‘(iii) requiring that the common car18 rier or other delivery service verify that all 

19 applicable taxes have been paid; 

20 ‘‘(iv) requiring that packages delivered 

21 by the common carrier or other delivery 

22 service contain any particular labels, notice, 

23 or markings; or 

24 ‘‘(v) prohibiting common carriers or 

25 other delivery services from making delivVerDate Nov 24 2008 02:23 May 19, 2009 Jkt 079200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6203 E:\BILLS\H1676.RH H1676

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1 eries on the basis of whether the delivery 

2 seller is or is not identified on any list of 

3 delivery sellers maintained and distributed 

4 by any entity other than the Federal Gov5 ernment. 

6 ‘‘(B) RELATIONSHIP TO OTHER LAWS.—Ex7 cept as provided in subparagraph (C), nothing 

8 in this paragraph shall be construed to prohibit, 

9 expand, restrict, or otherwise amend or modify— 

10 ‘‘(i) section 14501(c)(1) or 41713(b)(4) 

11 of title 49, United States Code; 

12 ‘‘(ii) any other restrictions in Federal 

13 law on the ability of State, local, or tribal 

14 governments to regulate common carriers; 

15 or 

16 ‘‘(iii) any provision of State, local, or 

17 tribal law regulating common carriers that 

18 falls within the provisions of sections 

19 14501(c)(2) or 41713(b)(4)(B) of title 49 of 

20 the United States Code. 

21 ‘‘(C) STATE LAWS PROHIBITING DELIVERY

22 SALES.—Nothing in the Prevent All Cigarette 

23 Trafficking Act of 2008, the amendments made 

24 by that Act, or in any other Federal statute shall 

25 be construed to preempt, supersede, or otherwise 


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1 limit or restrict State laws prohibiting the deliv2 ery sale, or the shipment or delivery pursuant to 

3 a delivery sale, of cigarettes or other tobacco 

4 products to individual consumers or personal 

5 residences except that no State may enforce 

6 against a common carrier a law prohibiting the 

7 delivery of cigarettes or other tobacco products to 

8 individual consumers or personal residences 

9 without proof that the common carrier was not 

10 entitled to an exemption referred to in para11 graph (2)(C) of this subsection. 

12 ‘‘(5) STATE, LOCAL, AND TRIBAL ADDITIONS.— 

13 ‘‘(A) IN GENERAL.—Any State, local, or 

14 tribal government shall provide the Attorney 

15 General of the United States with— 

16 ‘‘(i) all known names, addresses, 

17 website addresses, and other primary con18 tact information of any delivery seller that 

19 offers for sale or makes sales of cigarettes or 

20 smokeless tobacco in or into the State, local21 ity, or tribal land but has failed to register 

22 with or make reports to the respective tax 

23 administrator, as required by this Act, or 

24 that has been found in a legal proceeding to 


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1 have otherwise failed to comply with this 

2 Act; and 

3 ‘‘(ii) a list of common carriers and 

4 other persons who make deliveries of ciga5 rettes or smokeless tobacco in or into the 

6 State, locality, or tribal lands. 

7 ‘‘(B) UPDATES.—Any government pro8 viding a list to the Attorney General of the 

9 United States under subparagraph (A) shall also 

10 provide updates and corrections every 4 months 

11 until such time as such government notifies the 

12 Attorney General of the United States in writing 

13 that such government no longer desires to submit 

14 such information to supplement the list main15 tained and distributed by the Attorney General 

16 of the United States under paragraph (1). 

17 ‘‘(C) REMOVAL AFTER WITHDRAWAL.— 

18 Upon receiving written notice that a government 

19 no longer desires to submit information under 

20 subparagraph (A), the Attorney General of the 

21 United States shall remove from the list under 

22 paragraph (1) any persons that are on the list 

23 solely because of such government’s prior submis24 sions of its list of noncomplying delivery sellers 


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1 of cigarettes or smokeless tobacco or its subse2 quent updates and corrections. 

3 ‘‘(6) DEADLINE TO INCORPORATE ADDITIONS.— 

4 The Attorney General of the United States shall— 

5 ‘‘(A) include any delivery seller identified 

6 and submitted by a State, local, or tribal govern7 ment under paragraph (5) in any list or update 

8 that is distributed or made available under 

9 paragraph (1) on or after the date that is 30 

10 days after the date on which the information is 

11 received by the Attorney General of the United 

12 States; and 

13 ‘‘(B) distribute any such list or update to 

14 any common carrier or other person who makes 

15 deliveries of cigarettes or smokeless tobacco that 

16 has been identified and submitted by another 

17 government, pursuant to paragraph (5). 

18 ‘‘(7) NOTICE TO DELIVERY SELLERS.—Not later 

19 than 14 days prior to including any delivery seller on 

20 the initial list distributed or made available under 

21 paragraph (1), or on any subsequent list or update 

22 for the first time, the Attorney General of the United 

23 States shall make a reasonable attempt to send notice 

24 to the delivery seller by letter, electronic mail, or other 

25 means that the delivery seller is being placed on such 


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1 list or update, with that notice citing the relevant 

2 provisions of this Act. 

3 ‘‘(8) LIMITATIONS.— 

4 ‘‘(A) IN GENERAL.—Any common carrier or 

5 other person making a delivery subject to this 

6 subsection shall not be required or otherwise obli7 gated to— 

8 ‘‘(i) determine whether any list distrib9 uted or made available under paragraph (1) 

10 is complete, accurate, or up-to-date; 

11 ‘‘(ii) determine whether a person order12 ing a delivery is in compliance with this 

13 Act; or 

14 ‘‘(iii) open or inspect, pursuant to this 

15 Act, any package being delivered to deter16 mine its contents. 

17 ‘‘(B) ALTERNATE NAMES.—Any common 

18 carrier or other person making a delivery subject 

19 to this subsection shall not be required or other20 wise obligated to make any inquiries or other21 wise determine whether a person ordering a de22 livery is a delivery seller on the list under para23 graph (1) who is using a different name or ad24 dress in order to evade the related delivery re25 strictions, but shall not knowingly deliver any 


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1 packages to consumers for any such delivery sell2 er who the common carrier or other delivery 

3 service knows is a delivery seller who is on the 

4 list under paragraph (1) but is using a different 

5 name or address to evade the delivery restrictions 

6 of paragraph (2). 

7 ‘‘(C) PENALTIES.—Any common carrier or 

8 person in the business of delivering packages on 

9 behalf of other persons shall not be subject to any 

10 penalty under section 14101(a) of title 49, 

11 United States Code, or any other provision of 

12 law for— 

13 ‘‘(i) not making any specific delivery, 

14 or any deliveries at all, on behalf of any 

15 person on the list under paragraph (1); 

16 ‘‘(ii) not, as a matter of regular prac17 tice and procedure, making any deliveries, 

18 or any deliveries in certain States, of any 

19 cigarettes or smokeless tobacco for any per20 son or for any person not in the business of 

21 manufacturing, distributing, or selling ciga22 rettes or smokeless tobacco; or 

23 ‘‘(iii) delaying or not making a deliv24 ery for any person because of reasonable ef25 forts to comply with this Act. 


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1 ‘‘(D) OTHER LIMITS.—Section 2 and sub2 sections (a), (b), (c), and (d) of this section shall 

3 not be interpreted to impose any responsibilities, 

4 requirements, or liability on common carriers. 

5 ‘‘(f) PRESUMPTION.—For purposes of this Act, a deliv6 ery sale shall be deemed to have occurred in the State and 

7 place where the buyer obtains personal possession of the 

8 cigarettes or smokeless tobacco, and a delivery pursuant to 

9 a delivery sale is deemed to have been initiated or ordered 

10 by the delivery seller.’’. 

11 (d) PENALTIES.—The Jenkins Act is amended by 

12 striking section 3 and inserting the following: 

13 ‘‘SEC. 3. PENALTIES. 

14 ‘‘(a) CRIMINAL PENALTIES.— 

15 ‘‘(1) IN GENERAL.—Except as provided in para16 graph (2), whoever violates any provision of this Act 

17 shall be guilty of a felony and shall be imprisoned not 

18 more than 3 years, fined under title 18, United States 

19 Code, or both. 

20 ‘‘(2) EXCEPTIONS.— 

21 ‘‘(A) GOVERNMENTS.—Paragraph (1) shall 

22 not apply to a State, local, or tribal government. 

23 ‘‘(B) DELIVERY VIOLATIONS.—A common 

24 carrier or independent delivery service, or em25 ployee of a common carrier or independent delivVerDate Nov 24 2008 02:23 May 19, 2009 Jkt 079200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6203 E:\BILLS\H1676.RH H1676

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1 ery service, shall be subject to criminal penalties 

2 under paragraph (1) for a violation of section 

3 2A(e) only if the violation is committed inten4 tionally— 

5 ‘‘(i) as consideration for the receipt of, 

6 or as consideration for a promise or agree7 ment to pay, anything of pecuniary value; 

8 or 

9 ‘‘(ii) for the purpose of assisting a de10 livery seller to violate, or otherwise evading 

11 compliance with, section 2A. 

12 ‘‘(b) CIVIL PENALTIES.— 

13 ‘‘(1) IN GENERAL.—Except as provided in para14 graph (3), whoever violates any provision of this Act 

15 shall be subject to a civil penalty in an amount not 

16 to exceed— 

17 ‘‘(A) in the case of a delivery seller, the 

18 greater of— 

19 ‘‘(i) $5,000 in the case of the first vio20 lation, or $10,000 for any other violation; 

21 or 

22 ‘‘(ii) for any violation, 2 percent of the 

23 gross sales of cigarettes or smokeless tobacco 

24 of such person during the 1-year period 

25 ending on the date of the violation. 


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1 ‘‘(B) in the case of a common carrier or 

2 other delivery service, $2,500 in the case of a 

3 first violation, or $5,000 for any violation with4 in 1 year of a prior violation. 

5 ‘‘(2) RELATION TO OTHER PENALTIES.—A civil 

6 penalty under paragraph (1) for a violation of this 

7 Act shall be imposed in addition to any criminal 

8 penalty under subsection (a) and any other damages, 

9 equitable relief, or injunctive relief awarded by the 

10 court, including the payment of any unpaid taxes to 

11 the appropriate Federal, State, local, or tribal govern12 ments. 

13 ‘‘(3) EXCEPTIONS.— 

14 ‘‘(A) DELIVERY VIOLATIONS.—An employee 

15 of a common carrier or independent delivery 

16 service shall be subject to civil penalties under 

17 paragraph (1) for a violation of section 2A(e) 

18 only if the violation is committed inten19 tionally— 

20 ‘‘(i) as consideration for the receipt of, 

21 or as consideration for a promise or agree22 ment to pay, anything of pecuniary value; 

23 or 


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1 ‘‘(ii) for the purpose of assisting a de2 livery seller to violate, or otherwise evading 

3 compliance with, section 2A. 

4 ‘‘(B) OTHER LIMITATIONS.—No common 

5 carrier or independent delivery service shall be 

6 subject to civil penalties under paragraph (1) for 

7 a violation of section 2A(e) if— 

8 ‘‘(i) the common carrier or inde9 pendent delivery service has implemented 

10 and enforces effective policies and practices 

11 for complying with that section; or 

12 ‘‘(ii) an employee of the common car13 rier or independent delivery service who 

14 physically receives and processes orders, 

15 picks up packages, processes packages, or 

16 makes deliveries, takes actions that are out17 side the scope of employment of the em18 ployee in the course of the violation, or that 

19 violate the implemented and enforced poli20 cies of the common carrier or independent 

21 delivery service described in clause (i).’’. 

22 (e) ENFORCEMENT.—The Jenkins Act is amended by 

23 striking section 4 and inserting the following: 


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1 ‘‘SEC. 4. ENFORCEMENT. 

2 ‘‘(a) IN GENERAL.—The United States district courts 

3 shall have jurisdiction to prevent and restrain violations 

4 of this Act and to provide other appropriate injunctive or 

5 equitable relief, including money damages, for such viola6 tions. 

7 ‘‘(b) AUTHORITY OF THE ATTORNEY GENERAL.—The 

8 Attorney General of the United States shall administer and 

9 enforce the provisions of this Act. 

10 ‘‘(c) STATE, LOCAL, AND TRIBAL ENFORCEMENT.— 

11 ‘‘(1) IN GENERAL.— 

12 ‘‘(A) STANDING.—A State, through its at13 torney general (or a designee thereof), or a local 

14 government or Indian tribe that levies a tax sub15 ject to section 2A(a)(3), through its chief law en16 forcement officer (or a designee thereof), may 

17 bring an action in a United States district court 

18 to prevent and restrain violations of this Act by 

19 any person (or by any person controlling such 

20 person) or to obtain any other appropriate relief 

21 from any person (or from any person controlling 

22 such person) for violations of this Act, including 

23 civil penalties, money damages, and injunctive 

24 or other equitable relief. 

25 ‘‘(B) SOVEREIGN IMMUNITY.—Nothing in 

26 this Act shall be deemed to abrogate or constitute 


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1 a waiver of any sovereign immunity of a State 

2 or local government or Indian tribe against any 

3 unconsented lawsuit under this Act, or otherwise 

4 to restrict, expand, or modify any sovereign im5 munity of a State or local government or Indian 

6 tribe. 

7 ‘‘(2) PROVISION OF INFORMATION.—A State, 

8 through its attorney general, or a local government or 

9 Indian tribe that levies a tax subject to section 

10 2A(a)(3), through its chief law enforcement officer (or 

11 a designee thereof), may provide evidence of a viola12 tion of this Act by any person not subject to State, 

13 local, or tribal government enforcement actions for 

14 violations of this Act to the Attorney General of the 

15 United States or a United States attorney, who shall 

16 take appropriate actions to enforce the provisions of 

17 this Act. 

18 ‘‘(3) USE OF PENALTIES COLLECTED.— 

19 ‘‘(A) IN GENERAL.—There is established a 

20 separate account in the Treasury known as the 

21 ‘PACT Anti-Trafficking Fund’. Notwithstanding 

22 any other provision of law and subject to sub23 paragraph (B), an amount equal to 50 percent 

24 of any criminal and civil penalties collected by 

25 the United States Government in enforcing the 


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1 provisions of this Act shall be transferred into 

2 the PACT Anti-Trafficking Fund and shall be 

3 available to the Attorney General of the United 

4 States for purposes of enforcing the provisions of 

5 this Act and other laws relating to contraband 

6 tobacco products. 

7 ‘‘(B) ALLOCATION OF FUNDS.—Of the 

8 amount available to the Attorney General under 

9 subparagraph (A), not less than 50 percent shall 

10 be made available only to the agencies and offices 

11 within the Department of Justice that were re12 sponsible for the enforcement actions in which 

13 the penalties concerned were imposed or for any 

14 underlying investigations. 

15 ‘‘(4) NONEXCLUSIVITY OF REMEDY.— 

16 ‘‘(A) IN GENERAL.—The remedies available 

17 under this section and section 3 are in addition 

18 to any other remedies available under Federal, 

19 State, local, tribal, or other law. 

20 ‘‘(B) STATE COURT PROCEEDINGS.—Noth21 ing in this Act shall be construed to expand, re22 strict, or otherwise modify any right of an au23 thorized State official to proceed in State court, 

24 or take other enforcement actions, on the basis of 

25 an alleged violation of State or other law. 


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1 ‘‘(C) TRIBAL COURT PROCEEDINGS.—Noth2 ing in this Act shall be construed to expand, re3 strict, or otherwise modify any right of an au4 thorized Indian tribal government official to pro5 ceed in tribal court, or take other enforcement 

6 actions, on the basis of an alleged violation of 

7 tribal law. 

8 ‘‘(D) LOCAL GOVERNMENT ENFORCE9 MENT.—Nothing in this Act shall be construed to 

10 expand, restrict, or otherwise modify any right 

11 of an authorized local government official to pro12 ceed in State court, or take other enforcement ac13 tions, on the basis of an alleged violation of local 

14 or other law. 

15 ‘‘(d) PERSONS DEALING IN TOBACCO PRODUCTS.— 

16 Any person who holds a permit under section 5712 of the 

17 Internal Revenue Code of 1986 (regarding permitting of 

18 manufacturers and importers of tobacco products and ex19 port warehouse proprietors) may bring an action in a 

20 United States district court to prevent and restrain viola21 tions of this Act by any person (or by any person control22 ling such person) other than a State, local, or tribal govern23 ment. 

24 ‘‘(e) NOTICE.— 


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1 ‘‘(1) PERSONS DEALING IN TOBACCO PROD2 UCTS.—Any person who commences a civil action 

3 under subsection (d) shall inform the Attorney Gen4 eral of the United States of the action. 

5 ‘‘(2) STATE, LOCAL, AND TRIBAL ACTIONS.—It is 

6 the sense of Congress that the attorney general of any 

7 State, or chief law enforcement officer of any locality 

8 or tribe, that commences a civil action under this sec9 tion should inform the Attorney General of the United 

10 States of the action. 

11 ‘‘(f) PUBLIC NOTICE.— 

12 ‘‘(1) IN GENERAL.—The Attorney General of the 

13 United States shall make available to the public, by 

14 posting such information on the Internet and by other 

15 appropriate means, information regarding all en16 forcement actions undertaken by the Attorney General 

17 or United States attorneys, or reported to the Attor18 ney General, under this section, including informa19 tion regarding the resolution of such actions and how 

20 the Attorney General and the United States attorney 

21 have responded to referrals of evidence of violations 

22 pursuant to subsection (c)(2). 

23 ‘‘(2) REPORTS TO CONGRESS.—The Attorney 

24 General shall submit to Congress each year a report 


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1 containing the information described in paragraph 

2 (1).’’. 

3 SEC. 3. TREATMENT OF CIGARETTES AND SMOKELESS TO4 BACCO AS NONMAILABLE MATTER. 

5 (a) IN GENERAL.—Chapter 83 of title 18, United 

6 States Code, is amended by inserting after section 1716D 

7 the following: 

8 ‘‘§ 1716E. Tobacco products as nonmailable 

9 ‘‘(a) PROHIBITION.—All cigarettes (as that term is de10 fined in section 1 of the Act of October 19, 1949, commonly 

11 referred to as the Jenkins Act) and smokeless tobacco (as 

12 that term is defined in section 1 of the Act of October 19, 

13 1949, commonly referred to as the Jenkins Act) are non14 mailable and shall not be deposited in or carried through 

15 the mails. The United States Postal Service shall not accept 

16 for delivery or transmit through the mails any package that 

17 it knows or has reasonable cause to believe contains any 

18 cigarettes or smokeless tobacco made nonmailable by this 

19 subsection. For the purposes of subsection (a) reasonable 

20 cause includes— 

21 ‘‘(1) a statement on a publicly available website, 

22 or an advertisement, by any person that such person 

23 will mail matter which is nonmailable under this sec24 tion in return for payment; and 


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1 ‘‘(2) the placement of the person on the list cre2 ated under section 2A(e) of the Jenkins Act. 

3 ‘‘(b) EXCEPTIONS.—This section shall not apply to the 

4 following: 

5 ‘‘(1) CIGARS.—Cigars (as that term is defined in 

6 section 5702(a) of the Internal Revenue Code of 

7 1986). 

8 ‘‘(2) GEOGRAPHIC EXCEPTION.—Mailings within 

9 the State of Alaska or within the State of Hawaii. 

10 ‘‘(3) BUSINESS PURPOSES.—Tobacco products 

11 mailed only for business purposes between legally op12 erating businesses that have all applicable State and 

13 Federal Government licenses or permits and are en14 gaged in tobacco product manufacturing, distribution, 

15 wholesale, export, import, testing, investigation, or re16 search, or for regulatory purposes between any such 

17 businesses and State or Federal Government regu18 latory agencies, if the Postal Service issues a final 

19 rule establishing the standards and requirements that 

20 apply to all such mailings and which includes the fol21 lowing: 

22 ‘‘(A) The Postal Service shall verify that 

23 any person submitting an otherwise nonmailable 

24 tobacco product into the mails as authorized by 

25 this paragraph is a business or government 


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1 agency permitted to make such mailings pursu2 ant to this section and the related final rule. 

3 ‘‘(B) The Postal Service shall ensure that 

4 any recipient of an otherwise nonmailable to5 bacco product sent through the mails pursuant to 

6 this paragraph is a business or government 

7 agency that may lawfully receive such product. 

8 ‘‘(C) The mailings shall be sent through the 

9 Postal Service’s systems that provide for the 

10 tracking and confirmation of the delivery. 

11 ‘‘(D) The identities of the business or gov12 ernment entity submitting the mailing con13 taining otherwise nonmailable tobacco products 

14 for delivery and the business or government enti15 ty receiving the mailing shall be clearly set forth 

16 on the package and such information shall be 

17 kept in Postal Service records and made avail18 able to the Postal Service, the Attorney General, 

19 and to persons eligible to bring enforcement ac20 tions pursuant to section 3(d) of the Prevent All 

21 Cigarette Trafficking Act of 2008 for a period of 

22 at least three years. 

23 ‘‘(E) The mailings shall be marked with a 

24 Postal Service label or marking that makes it 

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1 mitted mailing of otherwise nonmailable tobacco 

2 products that may be delivered only to a per3 mitted government agency or business and may 

4 not be delivered to any residence or individual 

5 person. 

6 ‘‘(F) The mailings shall be delivered only to 

7 verified adult employees of the recipient busi8 nesses or government agencies who shall be re9 quired to sign for the mailing. 

10 ‘‘(4) CERTAIN INDIVIDUALS.—Tobacco products 

11 mailed by individual adult people for noncommercial, 

12 nonbusiness and non-money making purposes, includ13 ing the return of a damaged or unacceptable tobacco 

14 product to its manufacturer, if the Postal Service 

15 issues a final rule establishing the standards and re16 quirements that applies to all such mailings and 

17 which includes the following: 

18 ‘‘(A) The Postal Service shall verify that 

19 any person submitting an otherwise nonmailable 

20 tobacco product into the mails as authorized by 

21 this section is the individual person identified on 

22 the return address label of the package and is an 

23 adult. 

24 ‘‘(B) For mailings to individual persons the 

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1 ting the otherwise nonmailable tobacco product 

2 into the mails as authorized by this subsection to 

3 affirm that the recipient is an adult. 

4 ‘‘(C) The package shall not weigh more than 

5 10 ounces. 

6 ‘‘(D) The mailings shall be sent through the 

7 Postal Service’s systems that provide for the 

8 tracking and confirmation of the delivery. 

9 ‘‘(E) No package shall be delivered or placed 

10 in the possession of any individual person who 

11 is not a verified adult. For mailings to indi12 vidual persons, the Postal Service shall deliver 

13 the package only to the verified adult recipient 

14 at the recipient address or transfer it for delivery 

15 to an Air/Army Postal Office (APO) or Fleet 

16 Postal Office (FPO) number designated in the 

17 recipient address. 

18 ‘‘(F) No person shall initiate more than ten 

19 such mailings in any thirty-day period. 

20 ‘‘(5) EXCEPTION FOR MAILINGS FOR CONSUMER

21 TESTING BY MANUFACTURERS.—Nothing in this Act 

22 shall preclude a legally operating cigarette manufac23 turer operating on its own or through its legally au24 thorized agent from using the Postal Service to mail 


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1 cigarettes to verified adult smokers solely for con2 sumer testing purposes, provided that— 

3 ‘‘(A) the cigarette manufacturer has a fed4 eral permit, in good standing, pursuant to sec5 tion 5713 of the Internal Revenue Code of 1986; 

6 ‘‘(B) any package of cigarettes mailed pur7 suant to this exception shall contain no more 

8 than one carton of cigarettes (200 cigarettes); 

9 ‘‘(C) no individual shall receive more than 

10 1 package of cigarettes per manufacturer pursu11 ant to this exception in any 30-day period; 

12 ‘‘(D) all taxes as required by law on the 

13 cigarettes levied by the State and locality of de14 livery have been paid to the State and locality 

15 prior to delivery, and tax stamps or other tax16 payment indicia have been affixed to the ciga17 rettes as required by law; 

18 ‘‘(E) the recipient has not made any pay19 ments of any kind in exchange for receiving the 

20 cigarettes; 

21 ‘‘(F) the mailings are made pursuant to a 

22 final rule that the Postal Service shall issue to 

23 establish standards and requirements that apply 

24 to all such mailings and that include the fol25 lowing: 


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1 ‘‘(i) The Postal Service shall verify 

2 that any person submitting a tobacco prod3 uct into the mails pursuant to this para4 graph is a manufacturer or an agent legally 

5 authorized by the manufacturer to submit 

6 the tobacco product into the mails on the 

7 manufacturer’s behalf permitted to make 

8 such mailings pursuant to this paragraph. 

9 ‘‘(ii) The Postal Service shall require 

10 the manufacturer submitting the cigarettes 

11 into the mails pursuant to this paragraph 

12 to affirm that the manufacturer or its le13 gally authorized agent has verified that the 

14 recipient is an adult established smoker who 

15 has not made any payment for the ciga16 rettes, has formally stated in writing that 

17 he or she wishes to receive such mailings, 

18 and has not withdrawn that agreement de19 spite being offered the opportunity to do so 

20 by the manufacturer or its legally author21 ized agent at least once in every 3-month 

22 period. 

23 ‘‘(iii) The Postal Service shall require 

24 the manufacturer or its legally authorized 

25 agent submitting the cigarettes into the 


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1 mails pursuant to this paragraph to affirm 

2 that the package contains no more than a 

3 single carton (200) cigarettes on which all 

4 taxes levied on the cigarettes by the State 

5 and locality of delivery have been paid and 

6 all related State tax stamps or other tax7 payment indicia have been applied. 

8 ‘‘(iv) The mailings shall be sent 

9 through the Postal Service’s systems that 

10 provide for the tracking and confirmation of 

11 the delivery and all related records shall be 

12 kept in Postal Service records and made 

13 available to persons enforcing this section 

14 for a period of at least 3 years. 

15 ‘‘(v) The mailings shall be marked 

16 with a Postal Service label or marking that 

17 makes it clear to Postal Service employees 

18 that it is a permitted mailing of otherwise 

19 nonmailable tobacco products that may be 

20 delivered only to the named recipient after 

21 verifying that the recipient is an adult. 

22 ‘‘(vi) The Postal Service shall deliver 

23 the mailing only to the named recipient 

24 and only after verifying that the recipient 

25 is an adult. 


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1 ‘‘(6) DEFINITION OF ADULT.—For the purposes 

2 of paragraphs (3), (4), and (5), the term ‘adult’ 

3 means an individual person of at least 21 years of 

4 age. 

5 ‘‘(c) SEIZURE AND FORFEITURE.—Any cigarettes or 

6 smokeless tobacco made nonmailable by this subsection that 

7 are deposited in the mails shall be subject to seizure and 

8 forfeiture, pursuant to the procedures set forth in chapter 

9 46 of this title. Any tobacco products so seized and forfeited 

10 shall either be destroyed or retained by Government officials 

11 for the detection or prosecution of crimes or related inves12 tigations and then destroyed. 

13 ‘‘(d) ADDITIONAL PENALTIES.—In addition to any 

14 other fines and penalties imposed by this chapter for viola15 tions of this section, any person violating this section shall 

16 be subject to an additional civil penalty in the amount of 

17 10 times the retail value of the nonmailable cigarettes or 

18 smokeless tobacco, including all Federal, State, and local 

19 taxes. 

20 ‘‘(e) CRIMINAL PENALTY.—Whoever knowingly depos21 its for mailing or delivery, or knowingly causes to be deliv22 ered by mail, according to the direction thereon, or at any 

23 place at which it is directed to be delivered by the person 

24 to whom it is addressed, anything that this section declares 


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1 to be nonmailable matter shall be fined under this title, im2 prisoned not more than 1 year, or both. 

3 ‘‘(f) DEFINITION.—As used in this section, the term 

4 ‘State’ has the meaning given that term in section 1716(k). 

5 ‘‘(g) USE OF PENALTIES.—There is established a sepa6 rate account in the Treasury of the United States, to be 

7 known as the ‘PACT Postal Service Fund’. Notwithstanding 

8 any other provision of law, an amount equal to 50 percent 

9 of any criminal and civil fines or monetary penalties col10 lected by the United States Government in enforcing the 

11 provisions of this subsection shall be transferred into the 

12 PACT Postal Service Fund and shall be available to the 

13 Postmaster General for the purpose of enforcing the provi14 sions of this subsection. 

15 ‘‘(h) COORDINATION OF EFFORTS.—In the enforcement 

16 of this section, the Postal Service shall cooperate and coordi17 nate its efforts with related enforcement activities of any 

18 other Federal agency or of any State, local, or tribal govern19 ment, whenever appropriate.’’. 

20 (b) ACTIONS BY STATE, LOCAL OR TRIBAL GOVERN21 MENTS RELATING TO CERTAIN TOBACCO PRODUCTS.— 

22 (1) A State, through its attorney general (or a 

23 designee thereof), or a local government or Indian 

24 tribe that levies an excise tax on tobacco products, 

25 through its chief law enforcement officer (or a desVerDate Nov 24 2008 02:23 May 19, 2009 Jkt 079200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6203 E:\BILLS\H1676.RH H1676

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1 ignee thereof), may in a civil action in a United 

2 States district court obtain appropriate relief with re3 spect to a violation of section 1716E of title 18, 

4 United States Code. Appropriate relief includes in5 junctive and equitable relief and damages equal to the 

6 amount of unpaid taxes on tobacco products mailed 

7 in violation of that section to addressees in that State. 

8 (2) Nothing in this section shall be deemed to ab9 rogate or constitute a waiver of any sovereign immu10 nity of a State or local government or Indian tribe 

11 against any unconsented lawsuit under paragraph 

12 (1), or otherwise to restrict, expand, or modify any 

13 sovereign immunity of a State or local government or 

14 Indian tribe. 

15 (3) Nothing in this section shall be construed to 

16 prohibit an authorized State official from proceeding 

17 in State court on the basis of an alleged violation of 

18 any general civil or criminal statute of such State. 

19 (4) A State, through its attorney general, or a 

20 local government or Indian tribe that levies an excise 

21 tax on tobacco products, through its chief law enforce22 ment officer (or a designee thereof), may provide evi23 dence of a violation of paragraph (1) for commercial, 

24 business or money-making purposes by any person 

25 not subject to State, local, or tribal government enVerDate Nov 24 2008 02:23 May 19, 2009 Jkt 079200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6203 E:\BILLS\H1676.RH H1676

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1 forcement actions for violations of paragraph (1) to 

2 the Attorney General of the United States or a United 

3 States attorney, who shall take appropriate actions to 

4 enforce the provisions of this subsection. 

5 (5) The remedies available under this subsection 

6 are in addition to any other remedies available under 

7 Federal, State, local, tribal, or other law. Nothing in 

8 this subsection shall be construed to expand, restrict, 

9 or otherwise modify any right of an authorized State, 

10 local, or tribal government official to proceed in a 

11 State, tribal, or other appropriate court, or take other 

12 enforcement actions, on the basis of an alleged viola13 tion of State, local, tribal, or other law. 

14 (c) CLERICAL AMENDMENT.—The table of sections at 

15 the beginning of chapter 83 of title 18 is amended by adding 

16 after the item relating to section 1716D the following new 

17 item: 

‘‘1716E. Tobacco products as nonmailable.’’. 

18 SEC. 4. COMPLIANCE WITH MODEL STATUTE OR QUALI19 FYING STATUTE. 

20 (a) IN GENERAL.—A Tobacco Product Manufacturer 

21 or importer may not sell in, deliver to, or place for delivery 

22 sale, or cause to be sold in, delivered to, or placed for deliv23 ery sale in a State that is a party to the Master Settlement 

24 Agreement, any cigarette manufactured by a Tobacco Prod25 uct Manufacturer that is not in full compliance with the 


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1 terms of the Model Statute or Qualifying Statute enacted 

2 by such State requiring funds to be placed into a qualified 

3 escrow account under specified conditions, or any regula4 tions promulgated pursuant to such statute. 

5 (b) JURISDICTION TO PREVENT AND RESTRAIN VIOLA6 TIONS.— 

7 (1) IN GENERAL.—The United States district 

8 courts shall have jurisdiction to prevent and restrain 

9 violations of subsection (a) in accordance with this 

10 subsection. 

11 (2) INITIATION OF ACTION.—A State, through its 

12 attorney general, may bring an action in the United 

13 States district courts to prevent and restrain viola14 tions of subsection (a) by any person (or by any per15 son controlling such person). 

16 (3) ATTORNEY FEES.—In any action under 

17 paragraph (2), a State, through its attorney general, 

18 shall be entitled to reasonable attorney fees from a 

19 person found to have willfully and knowingly violated 

20 subsection (a). 

21 (4) NONEXCLUSIVITY OF REMEDIES.—The rem22 edy available under paragraph (2) is in addition to 

23 any other remedies available under Federal, State, or 

24 other law. No provision of this Act or any other Fed25 eral law shall be held or construed to prohibit or preVerDate Nov 24 2008 02:23 May 19, 2009 Jkt 079200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6203 E:\BILLS\H1676.RH H1676

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1 empt the Master Settlement Agreement, the Model 

2 Statute (as defined in the Master Settlement Agree3 ment), any legislation amending or complementary to 

4 the Model Statute in effect as of June 1, 2006, or any 

5 legislation substantially similar to such existing, 

6 amending, or complementary legislation hereinafter 

7 enacted. 

8 (5) OTHER ENFORCEMENT ACTIONS.—Nothing in 

9 this subsection shall be construed to prohibit an au10 thorized State official from proceeding in State court 

11 or taking other enforcement actions on the basis of an 

12 alleged violation of State or other law. 

13 (6) AUTHORITY OF THE ATTORNEY GENERAL.— 

14 The Attorney General of the United States may ad15 minister and enforce subsection (a). 

16 (c) DEFINITIONS.—In this section the following defini17 tions apply: 

18 (1) DELIVERY SALE.—The term ‘‘delivery sale’’ 

19 means any sale of cigarettes or smokeless tobacco to 

20 a consumer if— 

21 (A) the consumer submits the order for such 

22 sale by means of a telephone or other method of 

23 voice transmission, the mails, or the Internet or 

24 other online service, or the seller is otherwise not 


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1 in the physical presence of the buyer when the 

2 request for purchase or order is made; or 

3 (B) the cigarettes or smokeless tobacco are 

4 delivered to the buyer by common carrier, pri5 vate delivery service, or other method of remote 

6 delivery, or the seller is not in the physical pres7 ence of the buyer when the buyer obtains posses8 sion of the cigarettes or smokeless tobacco. 

9 (2) IMPORTER.—The term ‘‘importer’’ means 

10 each of the following: 

11 (A) SHIPPING OR CONSIGNING.—Any person 

12 in the United States to whom nontaxpaid to13 bacco products manufactured in a foreign coun14 try, Puerto Rico, the Virgin Islands, or a posses15 sion of the United States are shipped or con16 signed. 

17 (B) MANUFACTURING WAREHOUSES.—Any 

18 person who removes cigars or cigarettes for sale 

19 or consumption in the United States from a cus20 toms-bonded manufacturing warehouse. 

21 (C) UNLAWFUL IMPORTING.—Any person 

22 who smuggles or otherwise unlawfully brings to23 bacco products into the United States. 

24 (3) MASTER SETTLEMENT AGREEMENT.—The 

25 term ‘‘Master Settlement Agreement’’ means the 


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1 agreement executed November 23, 1998, between the 

2 attorneys general of 46 States, the District of Colum3 bia, the Commonwealth of Puerto Rico, and 4 terri4 tories of the United States and certain tobacco manu5 facturers. 

6 (4) MODEL STATUTE; QUALIFYING STATUTE.— 

7 The terms ‘‘Model Statute’’ and ‘‘Qualifying Statute’’ 

8 means a statute as defined in section IX(d)(2)(e) of 

9 the Master Settlement Agreement. 

10 (5) TOBACCO PRODUCT MANUFACTURER.—The 

11 term ‘‘Tobacco Product Manufacturer’’ has the mean12 ing given that term in section II(uu) of the Master 

13 Settlement Agreement. 

14 SEC. 5. INSPECTION BY BUREAU OF ALCOHOL, TOBACCO, 

15 FIREARMS, AND EXPLOSIVES OF RECORDS OF 

16 CERTAIN CIGARETTE AND SMOKELESS TO17 BACCO SELLERS; CIVIL PENALTY. 

18 Section 2343(c) of title 18, United States Code, is 

19 amended to read as follows: 

20 ‘‘(c)(1) Any officer of the Bureau of Alcohol, Tobacco, 

21 Firearms, and Explosives may, during normal business 

22 hours, enter the premises of any person described in sub23 section (a) or (b) for the purposes of inspecting— 


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1 ‘‘(A) any records or information required to be 

2 maintained by such person under the provisions of 

3 law referred to in this chapter; or 

4 ‘‘(B) any cigarettes or smokeless tobacco kept or 

5 stored by such person at such premises. 

6 ‘‘(2) The district courts of the United States shall have 

7 the authority in a civil action under this subsection to com8 pel inspections authorized by paragraph (1). 

9 ‘‘(3) Whoever violates paragraph (1), or an order 

10 issued under paragraph (2), shall be subject to a civil pen11 alty in an amount not to exceed $10,000 for each viola12 tion.’’. 

13 SEC. 6. EXCLUSIONS REGARDING INDIAN TRIBES AND TRIB14 AL MATTERS. 

15 (a) IN GENERAL.—Nothing in this Act or the amend16 ments made by this Act is intended nor shall be construed 

17 to affect, amend, or modify— 

18 (1) any agreements, compacts, or other intergov19 ernmental arrangements between any State or local 

20 government and any government of an Indian tribe 

21 (as that term is defined in section 4(e) of the Indian 

22 Self-Determination and Education Assistance Act (25 

23 U.S.C. 450b(e)) relating to the collection of taxes on 

24 cigarettes or smokeless tobacco sold in Indian country; 


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1 (2) any State laws that authorize or otherwise 

2 pertain to any such intergovernmental arrangements 

3 or create special rules or procedures for the collection 

4 of State, local, or tribal taxes on cigarettes or smoke5 less tobacco sold in Indian country; 

6 (3) any limitations under Federal or State law, 

7 including Federal common law and treaties, on State, 

8 local, and tribal tax and regulatory authority with 

9 respect to the sale, use, or distribution of cigarettes 

10 and smokeless tobacco by or to Indian tribes, tribal 

11 members, tribal enterprises, or in Indian country; 

12 (4) any Federal law, including Federal common 

13 law and treaties, regarding State jurisdiction, or lack 

14 thereof, over any tribe, tribal members, tribal enter15 prises, tribal reservations, or other lands held by the 

16 United States in trust for one or more Indian tribes; 

17 and 

18 (5) any State or local government authority to 

19 bring enforcement actions against persons located in 

20 Indian country. 

21 (b) COORDINATION OF LAW ENFORCEMENT.—Nothing 

22 in this Act or the amendments made by this Act shall be 

23 construed to inhibit or otherwise affect any coordinated law 

24 enforcement effort by 1 or more States or other jurisdictions, 


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1 including Indian tribes, through interstate compact or oth2 erwise, that— 

3 (1) provides for the administration of tobacco 

4 product laws or laws pertaining to interstate sales or 

5 other sales of tobacco products; 

6 (2) provides for the seizure of tobacco products or 

7 other property related to a violation of such laws; or 

8 (3) establishes cooperative programs for the ad9 ministration of such laws. 

10 (c) TREATMENT OF STATE AND LOCAL GOVERN11 MENTS.—Nothing in this Act or the amendments made by 

12 this Act is intended, and shall not be construed to, author13 ize, deputize, or commission States or local governments as 

14 instrumentalities of the United States. 

15 (d) ENFORCEMENT WITHIN INDIAN COUNTRY.—Noth16 ing in this Act or the amendments made by this Act is in17 tended to prohibit, limit, or restrict enforcement by the At18 torney General of the United States of the provisions herein 

19 within Indian country. 

20 (e) AMBIGUITY.—Any ambiguity between the language 

21 of this section or its application and any other provision 

22 of this Act shall be resolved in favor of this section. 


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1 SEC. 7. ENHANCED CONTRABAND TOBACCO ENFORCE2 MENT. 

3 (a) REQUIREMENTS.—The Director of the Bureau of 

4 Alcohol, Tobacco, Firearms and Explosives shall— 

5 (1) create 6 regional contraband tobacco traf6 ficking teams over a 3-year period in New York City, 

7 Washington DC, Detroit, Los Angeles, Seattle, and 

8 Miami, 

9 (2) create a new Tobacco Intelligence Center to 

10 oversee investigations and monitor and coordinate on11 going investigations and to serve as a nerve center for 

12 all on going tobacco diversion investigations in the 

13 United States, and where applicable with law enforce14 ment organizations around the world within the Bu15 reau of Alcohol, Tobacco, Firearms, and Explosives, 

16 (3) establish covert national warehouse for un17 dercover operations, and 

18 (4) create a computer database that will track 

19 and analyze information from retail sellers of tobacco 

20 products that sell through the internet, mail order or 

21 make other non face to face sales. 

22 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

23 authorized to be appropriated to carry out subsection (a) 

24 $8,500,000 for each of 5 fiscal years. 


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1 SEC. 8. EFFECTIVE DATE. 

2 (a) IN GENERAL.—Except as provided in subsection 

3 (b), this Act shall take effect on the date that is 90 days 

4 after the date of enactment of this Act. 

5 (b) BATFE AUTHORITY.—Section 5 shall take effect 

6 on the date of enactment of this Act. 

7 SEC. 9. SEVERABILITY. 

8 If any provision of this, or an amendment made by 

9 this Act or the application thereof to any person or cir10 cumstance is held invalid, the remainder of the Act and 

11 the application of it to any other person or circumstance 

12 shall not be affected thereby. 

13 SEC. 10. SENSE OF CONGRESS CONCERNING THE PRECE14 DENTIAL EFFECT OF THIS ACT. 

15 It is the sense of Congress that unique harms are asso16 ciated with online cigarette sales, including problems with 

17 verifying the ages of consumers in the digital market and 

18 the long-term health problems associated with the use of cer19 tain tobacco products. This Act was enacted recognizing the 

20 longstanding interest of Congress in urging compliance 

21 with States’ laws regulating remote sales of certain tobacco 

22 products to citizens of those States, including the passage 

23 of the Jenkins Act over 50 years ago, which established re24 porting requirements for out-of-State companies that sell 

25 certain tobacco products to citizens of the taxing States, and 

26 which gave authority to the Department of Justice and the 


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1 Bureau of Alcohol, Tobacco, Firearms, and Explosives to 

2 enforce the Jenkins Act. In light of the unique harms and 

3 circumstances surrounding the online sale of certain tobacco 

4 products, this Act is intended to help collect cigarette excise 

5 taxes, to stop tobacco sales to underage youth, and to help 

6 the States enforce their laws that target the online sales of 

7 certain tobacco products only. This Act is in no way meant 

8 to create a precedent regarding the collection of State sales 

9 or use taxes by, or the validity of efforts to impose other 

10 types of taxes on, out-of-State entities that do not have a 

11 physical presence within the taxing State. 


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Union Calendar No. 60 

111TH CONGRESS 

1ST SESSION H. R. 1676 

[Report No. 111–117] 

A BILL 

To prevent tobacco smuggling, to ensure the collection of all tobacco taxes, and for other purposes. 

MAY 18, 2009 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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