I 

114TH CONGRESS 

2D SESSION H. R. 5232 

To amend the Internal Revenue Code of 1986 to protect children’s health 

by denying any deduction for advertising and marketing directed at 

children to promote the consumption of food of poor nutritional quality. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 13, 2016 

Ms. DELAURO (for herself and Ms. LEE) introduced the following bill; which 

was referred to the Committee on Ways and Means, and in addition to 

the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to protect 

children’s health by denying any deduction for advertising and marketing directed at children to promote 

the consumption of food of poor nutritional quality. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Stop Subsidizing 

5 Childhood Obesity Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 


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1 (1) Childhood obesity has more than doubled in 

2 children and tripled in adolescents in the past 30 

3 years. Currently, more than one-third of children 

4 and adolescents are overweight or obese. 

5 (2) A report by the Robert Wood Johnson 

6 Foundation found that if the population of the 

7 United States continues on its current trajectory, 

8 adult obesity rates could exceed 60 percent in a 

9 number of States by 2030. 

10 (3) Health-related behaviors, such as eating 

11 habits and physical activity patterns, develop early 

12 in life and often extend into adulthood. The diets of 

13 American children and adolescents depart substan14 tially from recommended patterns that put their 

15 health at risk. Overall, American children and youth 

16 are not achieving basic nutritional goals. They are 

17 consuming excess calories and added sugars and 

18 have higher than recommended intakes of sodium, 

19 total fat, and saturated fats. 

20 (4) According to a 2012 report from the Fed21 eral Trade Commission, the total amount spent on 

22 food marketing to children is about $2,000,000,000 

23 a year. 

24 (5) Companies market food to children through 

25 television, radio, Internet, magazines, product placeVerDate Sep 11 2014 19:53 May 14, 2016 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5232.IH H5232

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1 ment in movies and video games, schools, product 

2 packages, toys, clothing and other merchandise, and 

3 almost anywhere a logo or product image can be 

4 shown. 

5 (6) According to a comprehensive review by the 

6 National Academy of Medicine, studies demonstrate 

7 that television food advertising affects children’s 

8 food choices, food purchase requests, diets, and 

9 health. 

10 (7) A 2005 report from the National Academy 

11 of Medicine confirmed that marketing of high-calorie 

12 foods to children and adolescents has been identified 

13 as one of the major contributors to childhood obe14 sity. 

15 (8) Nearly three-quarters of the foods adver16 tised on television shows intended for children are 

17 for sweets and convenience or fast foods. 

18 SEC. 3. DENIAL OF DEDUCTION FOR MARKETING DI19 RECTED AT CHILDREN TO PROMOTE FOOD 

20 OF POOR NUTRITIONAL QUALITY. 

21 (a) IN GENERAL.—Part IX of subchapter B of chap22 ter 1 of the Internal Revenue Code of 1986 is amended 

23 by adding at the end the following new section: 


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1 ‘‘SEC. 280I. DENIAL OF DEDUCTION FOR MARKETING DI2 RECTED AT CHILDREN FOR FOOD OF POOR 

3 NUTRITIONAL QUALITY OR BRANDS PRI4 MARILY ASSOCIATED WITH FOOD OF POOR 

5 NUTRITIONAL QUALITY. 

6 ‘‘(a) IN GENERAL.—No deduction shall be allowed 

7 under this chapter with respect to— 

8 ‘‘(1) any marketing directed at children for food 

9 of poor nutritional quality or brands primarily asso10 ciated with food of poor nutritional quality, and 

11 ‘‘(2) any of the following which are incurred or 

12 provided primarily for purposes described in para13 graph (1): 

14 ‘‘(A) Travel expenses (including meals and 

15 lodging). 

16 ‘‘(B) Goods or services of a type generally 

17 considered to constitute entertainment, amuse18 ment, or recreation or the use of a facility in 

19 connection with providing such goods and serv20 ices. 

21 ‘‘(C) Gifts. 

22 ‘‘(D) Other promotion expenses. 

23 ‘‘(b) DEFINITIONS.—In this section: 

24 ‘‘(1) BRAND.—The term ‘brand’ means a cor25 porate or product name, a business image, or a 

26 mark, regardless of whether it may legally qualify as 


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1 a trademark, used by a seller or manufacturer to 

2 identify goods or services and to distinguish them 

3 from the goods of a competitor. 

4 ‘‘(2) CHILD.—The term ‘child’ means an indi5 vidual who is age 14 or under. 

6 ‘‘(3) DIRECTED AT.—The term ‘directed at’ in7 cludes the use of measured media if the audience for 

8 such media will consist of 25 percent or more of 

9 children. 

10 ‘‘(c) MARKETING.—For purposes of this section, the 

11 term ‘marketing’ means all advertising and promotional 

12 techniques, including— 

13 ‘‘(1) advertising (including product placement) 

14 on television and radio, in print media, in social 

15 media, mobile media and apps, and on the Internet 

16 (including third-party and company-sponsored 

17 Websites), 

18 ‘‘(2) product packaging and labeling, 

19 ‘‘(3) advertising preceding a movie shown in a 

20 movie theater or placed on a video (DVD or VHS) 

21 or within a video game or mobile application, 

22 ‘‘(4) promotional content transmitted to per23 sonal computers and other digital or mobile devices, 

24 ‘‘(5) advertising displays and promotions at the 

25 retail site, including preferential placement, 


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1 ‘‘(6) specialty or premium items distributed in 

2 connection with the sale of a product or a product 

3 loyalty program, 

4 ‘‘(7) character licensing fees, toy cobranding 

5 and cross-promotions, 

6 ‘‘(8) sponsorship of events, 

7 ‘‘(9) celebrity endorsements, and 

8 ‘‘(10) in-school advertising including corporate9 branded materials, corporate incentive programs, 

10 label redemption programs, fundraisers, signs, score11 boards, posters, vending machine fronts, in-school 

12 TV and radio, corporate sponsorships, and market 

13 research activities. 

14 ‘‘(d) REGULATIONS.—Not later than 24 months after 

15 the date of the enactment of this section, the Secretary, 

16 in consultation with the Secretary of Health and Human 

17 Services and the Federal Trade Commission, shall promul18 gate such regulations as may be necessary to carry out 

19 the purposes of this section, including regulations defining 

20 the terms ‘directed at children’, ‘food of poor nutritional 

21 quality’, and ‘brand primarily associated with food of poor 

22 nutritional quality’, based on the National Academy of 

23 Medicine report described in such section 3(b), for pur24 poses of this section.’’. 

25 (b) STUDY BY NATIONAL ACADEMY OF MEDICINE.— 


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1 (1) IN GENERAL.—Not later than 60 days after 

2 the date of the enactment of this section, the Sec3 retary of Treasury shall enter into a contract with 

4 the National Academy of Medicine to develop proce5 dures for the evaluation and identification of— 

6 (A) food of poor nutritional quality, and 

7 (B) brands that are primarily associated 

8 with food of poor nutritional quality. 

9 (2) REPORT.—Not later than 12 months after 

10 the date of the enactment of this section, the Na11 tional Academy of Medicine shall submit to the Sec12 retary a report that establishes the proposed proce13 dures described in paragraph (1). 

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

15 for part IX of subchapter B of chapter 1 of such Code 

16 is amended by adding at the end the following new item: 

‘‘Sec. 280I. Denial of deduction for marketing directed at children to promote 

food of poor nutritional quality.’’. 

17 (d) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to amounts paid or incurred in tax19 able years beginning 24 months after the date of the en20 actment of this Act. 

21 SEC. 4. ADDITIONAL FUNDING FOR THE FRESH FRUIT AND 

22 VEGETABLE PROGRAM. 

23 In addition to any other amounts made available to 

24 carry out the Fresh Fruit and Vegetable Program under 


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1 section 19 of the Richard B. Russell National School 

2 Lunch Act (42 U.S.C. 1769a), the Secretary of the Treas3 ury (or the Secretary’s delegate) shall, on an annual basis, 

4 transfer to such program, from amounts in the general 

5 fund of the Treasury of the United States, an amount de6 termined by the Secretary of the Treasury (or the Sec7 retary’s delegate) to be equal to the increase in revenue 

8 for the preceding 12-month period by reason of the 

9 amendments made by section 3 of this Act. 

Æ 


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