II

105TH CONGRESS

2D SESSION S. 1648

To amend the Public Health Service Act and the Food, Drug and Cosmetic

Act to provide for reductions in youth smoking, for advancements in

tobacco-related research, and the development of safer tobacco products,

and for other purposes.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 12, 1998

Mr. JEFFORDS (for himself, Ms. COLLINS, and Mr. ENZI) introduced the following bill; which was read twice and referred to the Committee on Labor

and Human Resources

A BILL

To amend the Public Health Service Act and the Food,

Drug and Cosmetic Act to provide for reductions in

youth smoking, for advancements in tobacco-related research, and the development of safer tobacco products,

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,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Preventing Addiction to Smoking among Teens Act’’ or

6 the ‘‘PAST Act’’.
2

•S 1648 IS

1 (b) TABLE OF CONTENTS.—The Table of contents

2 for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Goals and purposes.

Sec. 4. National goals for the reduction in underage tobacco use.

TITLE I—REGULATION OF TOBACCO PRODUCTS AND TOBACCO

PRODUCT DEVELOPMENT

Sec. 101. Regulation of tobacco products and tobacco product development.

‘‘CHAPTER IX—HEALTH AND SAFETY REGULATORY

REQUIREMENTS RELATING TO TOBACCO PRODUCTS

‘‘Sec. 900. Definitions.

‘‘SUBCHAPTER A—TOBACCO PRODUCT REGULATION

‘‘Sec. 901. Statement of general duties.

‘‘Sec. 902. Submission of health information to the Secretary.

‘‘Sec. 903. Tobacco product health risk reduction standards.

‘‘Sec. 904. Good manufacturing practice standards.

‘‘Sec. 905. Tobacco product labeling, warning, and packaging standards.

‘‘Sec. 906. Restriction on marketing and advertising.

‘‘Sec. 907. Reduced risk tobacco products.

‘‘Sec. 908. Tobacco product marketing restrictions.

‘‘Sec. 909. Tobacco products scientific advisory committee.

‘‘Sec. 910. Reports.

‘‘Sec. 911. Judicial review.

‘‘Sec. 912. Authority to assess and use fees.

‘‘Sec. 913. Preservation of State and local authority.

Sec. 102. Technical provisions.

Sec. 103. Federal licensing of military and other entities.

TITLE II—NATIONAL EFFORTS TO REDUCE YOUTH SMOKING

Sec. 201. Short title.

Sec. 202. Amendment to Public Health Service Act.

‘‘TITLE XXVIII—NATIONAL EFFORTS TO REDUCE YOUTH

SMOKING

‘‘Sec. 2801. Definitions.

‘‘Subtitle A—Required Reduction in Underage Use of Tobacco Products

‘‘Sec. 2811. Purpose.

‘‘Sec. 2812. Determination of underage use base percentages.

‘‘Sec. 2813. Annual daily incidence of underage use of tobacco products.

‘‘Sec. 2814. Required reduction in underage tobacco use.

‘‘Sec. 2815. Application of surcharges.

‘‘Sec. 2816. Abatement procedures.

‘‘Sec. 2817. Incentive for exceeding reduction goals.

‘‘Subtitle B—Restrictions on Access to Tobacco Products
3

•S 1648 IS

‘‘Sec. 2821. Minors’ access to tobacco products.

‘‘Sec. 2822. State laws regarding sale of tobacco products to individuals

under the age of 18.

‘‘Sec. 2823. Model State law.

‘‘Sec. 2824. Funding.

‘‘Sec. 2825. Regulations.

‘‘Subtitle C—State and Community Action Program

‘‘Sec. 2831. Funding from Tobacco Settlement Trust Fund.

‘‘Sec. 2832. Allotments.

‘‘Sec. 2833. Payments under allotments to States.

‘‘Sec. 2834. Use of allotments.

‘‘Sec. 2835. Application for payments; State plan.

‘‘Sec. 2836. Reports, data, and audits.

‘‘Sec. 2837. Withholding.

‘‘Sec. 2838. Nondiscrimination.

‘‘Sec. 2839. Criminal penalty for false Statements.

‘‘Subtitle D—Smoking Cessation Programs

‘‘Sec. 2841. Funding from Tobacco Settlement Trust Fund.

‘‘Sec. 2842. Allotments.

‘‘Sec. 2843. Payments under allotments to States.

‘‘Sec. 2844. Use of allotments.

‘‘Sec. 2845. Application for payments; State plan.

‘‘Sec. 2846. Reports, data, and audits.

‘‘Sec. 2847. Withholding.

‘‘Sec. 2848. Nondiscrimination.

‘‘Sec. 2849. Criminal penalty for false Statements.

‘‘Subtitle E—Reducing Youth Smoking and Tobacco-Related Diseases

Through Research

‘‘Sec. 2851. Study by the Institute of Medicine.

‘‘Sec. 2852. National Tobacco Task Force.

‘‘Sec. 2853. Research activities of the Centers for Disease Control and

Prevention.

‘‘Sec. 2854. Research activities of the National Institutes of Health.

‘‘Subtitle F—Public Health Education and Promotion

‘‘Sec. 2861. Public health education and promotion.

TITLE III—STANDARDS TO REDUCE INVOLUNTARY EXPOSURE TO

TOBACCO SMOKE

Sec. 301. Standards to reduce involuntary exposure to tobacco smoke.

TITLE IV—MISCELLANEOUS PROVISIONS

Sec. 401. Severability.

1 SEC. 2. FINDINGS.

2 Congress makes the following findings:
4

•S 1648 IS

1 (1) Tobacco is an addictive substance the use of

2 which constitutes the Nation’s number 1 preventable

3 cause of death.

4 (2) The use of tobacco products by the nation’s

5 children is a serious and growing public health prob6 lem that results in new generations of tobacco-de7 pendent children and adults.

8 (3) There is a consensus within the scientific,

9 public health, and medical communities that cur10 rently marketed tobacco products are inherently un11 safe and cause cancer, heart disease, and other seri12 ous adverse health effects.

13 (4) Virtually all new users of tobacco products

14 are under the age of 18. Tobacco industry advertis15 ing and marketing is directed at adolescents and as

16 such, sweeping new restrictions on the sale, pro17 motion, and distribution of such products are need18 ed.

19 (5) The Office on Smoking and Health of the

20 Centers for Disease Control and Prevention has

21 found that more than 70 percent of the nation’s

22 50,000,000 current smokers have tried unsuccess23 fully to quit, and about 20,000,000 try to quit each

24 year, with little success.
5

•S 1648 IS

1 (6) Current research shows that new and cost2 effective treatments are available that could dramati3 cally improve the success rate of smoking cessation

4 attempts.

5 (7) While State laboratory models, such as

6 those developed in California and Massachusetts,

7 demonstrate that comprehensive programs to reduce

8 tobacco use can be effective, tobacco-related re9 search, including policy-oriented, programmatic, be10 havioral, public health, and biomedical research

11 should be a substantial component of a national pro12 gram to prevent and reduce the use of tobacco prod13 ucts.

14 (8) Enhancing the available prevention, re15 search, and treatment resources with respect to to16 bacco will allow our Nation to address more effec17 tively the problems associated with the use of to18 bacco products.

19 (9) States have been instrumental in reducing

20 smoking rates, and States should continue to play a

21 leading role in tobacco control efforts.

22 (10) While the Synar amendment has estab23 lished the importance of restricting access to tobacco

24 products as a way to reduce smoking among teens,

25 most teens who smoke buy cigarettes themselves.
6

•S 1648 IS

1 Thus, greater emphasis must be placed on the en2 forcement of effective restrictions on access and the

3 elimination of marketing and advertising to children

4 and teens.

5 SEC. 3. GOALS AND PURPOSES.

6 (a) GOALS.—It is a goal of this Act to—

7 (1) decrease and prevent youth smoking and re8 duce the marketing of tobacco products to young

9 Americans;

10 (2) decrease and prevent tobacco use by all

11 Americans by encouraging public education and

12 smoking cessation programs and to decrease the ex13 posure of individuals to environmental (second-hand)

14 smoke;

15 (3) develop effective strategies to prevent the

16 underage use of tobacco products;

17 (4) advance our knowledge of the health effects

18 of nicotine and tobacco products on the human body,

19 the factors that influence behavior related to the use

20 and nonuse of tobacco products, and the factors that

21 influence successful cessation efforts;

22 (5) establish the authority of the Food and

23 Drug Administration with respect to the types of to24 bacco products that may be lawfully sold; and
7

•S 1648 IS

1 (6) invest tobacco revenues in important public

2 health priorities, such as smoking cessation, public

3 education, counter-advertising.

4 (b) PURPOSES.—It is the purpose of this Act to—

5 (1) provide for the funding by the tobacco in6 dustry of an aggressive enforcement program relat7 ing to tobacco advertising and distribution, including

8 a State-administered retail licensing system to pre9 vent minors from obtaining tobacco products;

10 (2) subject the tobacco industry to severe finan11 cial penalties in the event that underage tobacco

12 usage does not decline radically over the next 10

13 years;

14 (3) provide annual payments to the States to

15 fund comprehensive tobacco education and use pre16 vention programs at the State and community levels;

17 (4) provide annual payments to States to fund

18 effective smoking cessation treatment efforts at the

19 State and community levels;

20 (5) provide for the establishment of national

21 standards to control the manufacturing of tobacco

22 products and the ingredients used in such products;

23 (6) provide certain regulatory powers to the

24 Secretary of Health and Human Services to encour25 age the development and marketing by the tobacco
8

•S 1648 IS

1 industry of ‘‘less hazardous tobacco products’’, in2 cluding the power to regulate the level of nicotine in

3 such products;

4 (7) provide for the establishment of a national

5 education-oriented counter advertising and tobacco

6 use prevention campaign to be funded through the

7 National Tobacco Settlement Trust Fund; and

8 (8) establish a minimum Federal standard to

9 limit smoking in public places, including the halls of

10 Congress.

11 SEC. 4. NATIONAL GOALS FOR THE REDUCTION IN UNDER12 AGE TOBACCO USE.

13 (a) IN GENERAL.—With respect to the average an14 nual incidence of the daily use of tobacco products by indi15 viduals who are under 18 years of age, it shall be the na16 tional goals of the United States that such use be reduced

17 as follows:

18 (1) CIGARETTES.—With respect to cigarettes—

19 (A) in the fifth and sixth calendar years

20 after the date of enactment of this Act the per21 centage decrease in the use of cigarette prod22 ucts shall be at least 30 percent;

23 (B) in the seventh, eighth and ninth cal24 endar years after the date of enactment of this
9

•S 1648 IS

1 Act the percentage decrease in the use of ciga2 rette products shall be at least 50 percent; and

3 (C) in the tenth and subsequent calendar

4 years after the date of enactment of this Act

5 the percentage decrease in the use of cigarette

6 products shall be at least 60 percent.

7 (2) SMOKELESS TOBACCO PRODUCTS.—With re8 spect to smokeless tobacco products—

9 (A) in the fifth and sixth calendar years

10 after the date of enactment of this Act the per11 centage decrease in the use of smokeless to12 bacco products shall be at least 25 percent;

13 (B) in the seventh, eighth and ninth cal14 endar years after the date of enactment of this

15 Act the percentage decrease in the use of

16 smokeless tobacco products shall be at least 35

17 percent; and

18 (C) in the tenth and subsequent calendar

19 years after the date of enactment of this Act

20 the percentage decrease in the use of smokeless

21 tobacco products shall be at least 45 percent.

22 (b) DETERMINATIONS.—Determinations as to wheth23 er the national goals described in subsection (a) have been

24 met shall be made in accordance with the provisions of
10

•S 1648 IS

1 subtitle A of title XXVIII of the Public Health Service

2 Act (as added by section 202).

3 TITLE I—REGULATION OF TO4 BACCO PRODUCTS AND TO5 BACCO PRODUCT DEVELOP6 MENT

7 SEC. 101. REGULATION OF TOBACCO PRODUCTS AND TO8 BACCO PRODUCT DEVELOPMENT.

9 (a) PROHIBITED ACTS.—Section 301 of the Federal

10 Food, Drug, and Cosmetic Act (21 U.S.C. 331) is amend11 ed by adding at the end the following:

12 ‘‘(x) The introduction or delivery for introduction into

13 interstate commerce of any tobacco product that does not

14 comply with the provisions of chapter IX.

15 ‘‘(y) The failure by the manufacturer of a tobacco

16 product to comply with a tobacco product health risk man17 agement standard, a good manufacturing practice stand18 ard, a tobacco product labeling, warning or packaging

19 standard, or any other requirement of chapter IX.’’.

20 (b) INSPECTIONS.—Section 704(a)(1) of the Federal

21 Food, Drug, and Cosmetic Act (21 U.S.C. 374(a)(1)) is

22 amended—

23 (1) in subparagraph (A), by striking ‘‘or cos24 metics’’ each place that such appears and inserting

25 ‘‘, cosmetics, or tobacco products’’; and
11

•S 1648 IS

1 (2) in the second sentence, by striking ‘‘drugs

2 or’’ each place that such appears and inserting

3 ‘‘drugs, tobacco products or’’.

4 (c) REGULATION OF TOBACCO PRODUCTS.—The

5 Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301

6 et seq.) is amended—

7 (1) by redesignating chapter IX as chapter X;

8 (2) by redesignating sections 901, 902, 903,

9 904, and 905 as sections 1001, 1002, 1003, 1004,

10 and 1005, respectively; and

11 (3) by adding after chapter VIII the following

12 new chapter:

13 ‘‘CHAPTER IX—HEALTH AND SAFETY REGU14 LATORY REQUIREMENTS RELATING TO TO15 BACCO PRODUCTS

16 ‘‘SEC. 900. DEFINITIONS.

17 ‘‘In this chapter:

18 ‘‘(1) CIGARETTE.—The term ‘cigarette’ means

19 any product which contains nicotine, is intended to

20 be burned or heated under ordinary conditions of

21 use, and consists of—

22 ‘‘(A) any roll of tobacco wrapped in paper

23 or in any substance not containing tobacco; and

24 ‘‘(B) any roll of tobacco wrapped in any

25 substance containing tobacco which, because of
12

•S 1648 IS

1 its appearance, the type of tobacco used in the

2 filler, or its packaging and labeling, is likely to

3 be offered to, or purchased by, consumers as a

4 cigarette described in subparagraph (A).

5 ‘‘(2) CIGARETTE TOBACCO.—The term ‘ciga6 rette tobacco’ means any product that consists of

7 loose tobacco that contains or delivers nicotine and

8 is intended for use by persons in a cigarette. Unless

9 otherwise stated, the requirements of this title per10 taining to cigarettes shall also apply to cigarette to11 bacco.

12 ‘‘(3) NICOTINE.—The term ‘nicotine’ means the

13 chemical substance named 3-(1-Methyl-2-

14 pyrrolidinyl)pyridine or C10H14N2, including any salt

15 or complex of nicotine.’’.

16 ‘‘(4) SMOKELESS TOBACCO.—The term ‘smoke17 less tobacco’ means any product that consists of cut,

18 ground, powdered, or leaf tobacco that contains nico19 tine and that is intended to be placed in the oral or

20 nasal cavity.

21 ‘‘(5) TAR.—The term ‘tar’ means mainstream

22 total particulate matter minus nicotine and water.

23 ‘‘(6) TOBACCO ADDITIVE.—The term ‘tobacco

24 additive’ means any substance the intended use of

25 which results or may reasonably be expected to re-
13

•S 1648 IS

1 sult, directly or indirectly, in the substance becoming

2 a component of, or otherwise affecting the character3 istics of, any tobacco product, including any sub4 stance that may have been removed from the tobacco

5 product and then readded in the substance’s original

6 or modified form.

7 ‘‘(7) TOBACCO PRODUCT.—The term ‘tobacco

8 product’ means cigarettes and smokeless tobacco

9 products.

10 ‘‘Subchapter A—Tobacco Product Regulation

11 ‘‘SEC. 901. STATEMENT OF GENERAL DUTIES.

12 ‘‘As part of the comprehensive health promotion and

13 disease prevention program established under this chapter

14 and the PAST Act (and the amendments made by such

15 Act) relating to diseases and conditions associated with

16 the use of tobacco products, and that places a special em17 phasis on discouraging the use of such products by young

18 Americans, the Secretary shall—

19 ‘‘(1) receive, assess, and provide appropriate

20 confidentiality regarding information submitted to

21 the Secretary under section 902;

22 ‘‘(2) develop and implement health risk reduc23 tion standards for tobacco products under section

24 903;
14

•S 1648 IS

1 ‘‘(3) develop and implement good manufactur2 ing practice standards for tobacco products under

3 section 904;

4 ‘‘(4) develop and implement tobacco product la5 beling, warning, and packaging standards under sec6 tion 905;

7 ‘‘(5) enforce, and as appropriate, revise tobacco

8 product labeling, warning, and packaging standards

9 under section 905;

10 ‘‘(6) develop and implement standards that en11 courage the development and use of reduced risk to12 bacco products under section 907;

13 ‘‘(7) develop and implement tobacco product

14 marketing standards under section 908;

15 ‘‘(8) establish and oversee a tobacco products

16 scientific advisory committee under section 909 to

17 provide advice on the establishment of tobacco prod18 uct marketing standards under section 903, 904,

19 905, and 907; and

20 ‘‘(9) submit reports to Congress evaluating the

21 effectiveness of this chapter and the PAST Act as

22 described in section 910.
15

•S 1648 IS

1 ‘‘SEC. 902. SUBMISSION OF HEALTH INFORMATION TO THE

2 SECRETARY.

3 ‘‘(a) REQUIREMENT.—Not later than 6 months after

4 the date of enactment of this chapter, each manufacturer

5 or importer of tobacco products shall submit to the Sec6 retary the following information:

7 ‘‘(1) A listing of all tobacco ingredients, sub8 stances and compounds (other than tobacco, water

9 or reconstituted tobacco sheet made wholly from to10 bacco) that are, on such date, added by the manu11 facturer to the tobacco, paper, filter or other compo12 nent of each tobacco product by brand and by quan13 tity in each brand and subbrand.

14 ‘‘(2) A description of the nicotine content of

15 each tobacco product measured in milligrams of nic16 otine.

17 ‘‘(3) All documents (including underlying sci18 entific information) relating to research activities,

19 and research findings, conducted or supported by

20 the manufacturer (or agents thereof) on the health

21 effects of tobacco products, their constituents and

22 components, and tobacco additives, described in

23 paragraph (1).

24 ‘‘(4) All documents (including underlying sci25 entific information) relating to research activities,

26 and research findings, conducted or supported by
16

•S 1648 IS

1 the manufacturer that bear on the issue of whether

2 a reduction in risk to health from tobacco products

3 can occur upon the employment of technology avail4 able or known to the manufacturer.

5 ‘‘(5) All documents (including underlying sci6 entific information) relating to marketing research

7 involving the use of tobacco products.

8 An importer of a tobacco product not manufactured in the

9 United States shall supply the information required of a

10 manufacturer under this subsection.

11 ‘‘(b) ANNUAL SUBMISSION.—A manufacturer or im12 porter that is required to submit information under sub13 section (a) shall update such information on an annual

14 basis.

15 ‘‘(c) TIME FOR SUBMISSION.—

16 ‘‘(1) IN GENERAL.—At least 90 days prior to

17 the delivery for introduction into interstate com18 merce of a tobacco product not on the market on the

19 date of enactment of this chapter, the manufacturer

20 of such product shall provide the information re21 quired under subsection (a).

22 ‘‘(2) MODIFICATION OF PRODUCTS.—If at any

23 time a manufacturer adds to its tobacco products a

24 new tobacco additive, increases or decreases the

25 quantity of an existing tobacco additive, or elimi-
17

•S 1648 IS

1 nates a tobacco additive from any tobacco product,

2 the manufacturer shall within 60 days of such action

3 so advise the Secretary in writing.

4 ‘‘(d) CONFIDENTIALITY.—

5 ‘‘(1) GENERAL RULE.—Any information that is

6 not required to be disclosed to the public under this

7 section, shall be exempt from disclosure pursuant to

8 subsection (a) of section 552 of title 5, United

9 States Code, by reason of subsection (b)(4) of such

10 section, and shall be considered confidential and

11 shall not be disclosed, except that such information

12 may be disclosed to other officers or employees as

13 provided for in paragraph (4) or when relevant in

14 any proceeding under this chapter.

15 ‘‘(2) PETITION BY MANUFACTURER.—Upon the

16 submission of the information required under sub17 section (a), or the submission of any other informa18 tion under any other provisions of this chapter, a

19 manufacturer may petition the Secretary to exempt

20 certain ingredients, substances, or compounds or

21 other information submitted from public disclosure

22 under this subsection on the basis that such infor23 mation should be considered confidential as a trade

24 secret. Such petition may be accompanied by such

25 data as the manufacturer elects to submit.
18

•S 1648 IS

1 ‘‘(3) DETERMINATION.—Not later than 90 days

2 after receiving a petition under paragraph (2), the

3 Secretary shall make a determination with respect to

4 whether the information described in the petition

5 should be exempt from disclosure under paragraph

6 (1) as a trade secret. The Secretary shall provide the

7 manufacturer involved with notice of such deter8 mination, but the decision of the Secretary shall be

9 final.

10 ‘‘(4) PROCEDURES FOR CONFIDENTIAL INFOR11 MATION.—The Secretary shall develop procedures to

12 maintain the confidentiality of information that is

13 treated as a trade secret under a determination

14 under paragraph (3). Such procedures shall in15 clude—

16 ‘‘(A) a requirement that such information

17 be maintained in a secure facility; and

18 ‘‘(B) a requirement that only the Sec19 retary, or the authorized agents of the Sec20 retary, will have access to the information and

21 shall be instructed to maintain the confidential22 ity of such information.

23 ‘‘(5) HEALTH DISCLOSURE.—Notwithstanding

24 any other provision of this subsection, the Secretary

25 may require that any ingredient, substance, or com-
19

•S 1648 IS

1 pound contained in a tobacco product that is deter2 mined to be exempt from disclosure be disclosed if

3 the Secretary determines that it is in the interest of

4 public health to disclose such ingredient, substance,

5 or compound.

6 ‘‘SEC. 903. TOBACCO PRODUCT HEALTH RISK REDUCTION

7 STANDARDS.

8 ‘‘(a) AUTHORITY.—

9 ‘‘(1) IN GENERAL.—The Secretary shall by reg10 ulation (promulgated under the authority of section

11 701(a) and consistent with the procedures described

12 in section 553 of title 5, United States Code) estab13 lish tobacco product health risk reduction standards.

14 ‘‘(2) CONSULTATION.—In developing and pro15 mulgating regulations under this chapter, the Sec16 retary shall consult (as the Secretary determines ap17 propriate) with—

18 ‘‘(A) Federal public health and safety offi19 cials; and

20 ‘‘(B) other public health and safety ex21 perts, including State and local public health

22 and safety officials, and other interested mem23 bers of the public and affected parties.

24 ‘‘(b) PROCEDURES FOR THE ESTABLISHMENT OF

25 STANDARDS.—
20

•S 1648 IS

1 ‘‘(1) PUBLICATION OF NOTICE.—

2 ‘‘(A) IN GENERAL.—The Secretary shall

3 publish in the Federal Register a notice of pro4 posed rulemaking for the establishment, amend5 ment, or revocation of any health risk reduction

6 standard for a tobacco product under this sec7 tion. The Secretary may publish an advance no8 tice of proposed rulemaking in order to solicit

9 broad input at an earlier stage in the rule10 making process.

11 ‘‘(B) CONTENTS OF NOTICE.—A notice of

12 proposed rulemaking for the establishment or

13 amendment of a health risk reduction standard

14 for a tobacco product shall be accompanied by

15 a justification of the proposed action and

16 shall—

17 ‘‘(i) invite interested persons to sub18 mit to the Secretary, within 30 days of the

19 publication of the notice, requests for

20 changes in the standard based on new in21 formation relevant to the standard; and

22 ‘‘(ii) invite interested persons to sub23 mit an existing health risk reduction

24 standard for the tobacco product, including

25 a draft or proposed health risk reduction
21

•S 1648 IS

1 standard, for consideration by the Sec2 retary.

3 ‘‘(C) NOTICE OF REVOCATION.—A notice

4 of proposed rulemaking for the revocation of a

5 health risk reduction standard shall set forth a

6 finding with supporting justification that the

7 health risk reduction standard is no longer nec8 essary with respect to the tobacco product.

9 ‘‘(D) COMMENTS.—The Secretary shall

10 provide for a comment period of not less than

11 60 days after the date on which a notice has

12 been published under this paragraph.

13 ‘‘(2) REQUEST FOR CHANGE.—If, after the

14 publication of a notice in accordance with paragraph

15 (1), the Secretary receives a request for a change in

16 the health risk reduction standard for a tobacco

17 product, the Secretary shall, within 60 days of the

18 publication of the notice, either deny the request and

19 provide a written response explaining the reasons for

20 the denial, or give notice of an intent to initiate such

21 a change.

22 ‘‘(3) REGULATION FOR ESTABLISHMENT.—

23 ‘‘(A) IN GENERAL.—After the expiration of

24 the period for comment on a notice of proposed

25 rulemaking published under paragraph (1) with
22

•S 1648 IS

1 respect to a health risk reduction standard, and

2 after consideration of such comments and any

3 report from the tobacco products advisory com4 mittee under section 909, the Secretary shall—

5 ‘‘(i) promulgate a regulation establish6 ing a health risk reduction standard and

7 publish in the Federal Register findings on

8 the matters referred to in subsection (b);

9 or

10 ‘‘(ii) publish a notice terminating the

11 proceeding for the development of the

12 standard together with the reasons for

13 such termination.

14 ‘‘(B) CONTENTS.—A regulation establish15 ing a health risk reduction standard under sub16 paragraph (A) shall set forth the date or dates

17 upon which the standard shall take effect, but

18 no such regulation may take effect before the

19 expiration of the 1-year period beginning on the

20 date of its publication unless the Secretary de21 termines that an earlier effective date is nec22 essary for the protection of the public health.

23 Such date or dates shall be established so as to

24 minimize economic loss to, and disruption or

25 dislocation of, domestic and international trade.
23

•S 1648 IS

1 ‘‘(4) AMENDING OR REVOKING OF STAND2 ARDS.—

3 ‘‘(A) IN GENERAL.—The Secretary, upon

4 the initiative of the Secretary or upon petition

5 of an interested person, may by regulation, pro6 mulgated in accordance with the requirements

7 of paragraphs (1), (2), and (3), amend or re8 voke a health risk reduction standard for a to9 bacco product.

10 ‘‘(B) EFFECTIVENESS OF AMENDMENT.—

11 The Secretary may declare a proposed amend12 ment of a health risk reduction standard under

13 this section to be effective on and after its pub14 lication in the Federal Register and until the

15 effective date of any final action taken on such

16 amendment if the Secretary determines that

17 making it so effective is in the public interest.

18 A proposed amendment of a health risk reduc19 tion standard made so effective under the pre20 ceding sentence may not prohibit, during the

21 period in which it is so effective, the introduc22 tion or delivery for introduction into interstate

23 commerce of a tobacco product which conforms

24 to such standard without the change or changes

25 provided by such proposed amendment.
24

•S 1648 IS

1 ‘‘(c) REGULATION OF THE COMPOSITION OF TO2 BACCO PRODUCTS.—

3 ‘‘(1) IN GENERAL.—The Secretary may adopt a

4 health risk reduction standard under this section

5 that requires—

6 ‘‘(A) the modification of a tobacco product

7 in a manner that involves—

8 ‘‘(i) the gradual reduction of nicotine

9 yields of the product;

10 ‘‘(ii) the reduction or elimination of

11 other harmful constituents, ingredients (in12 cluding tobacco additives), substances,

13 compounds and properties of the product

14 in accordance with subsection (d)(4)(B),

15 including the establishment of levels of nic16 otine and other components, ingredients

17 (including tobacco additives), and constitu18 ents of the product, or smoke emitted by

19 such products; or

20 ‘‘(iii) other changes to reduce the like21 lihood of cigarette induced fires;

22 ‘‘(B) effective not earlier than the expira23 tion of the 10-year period beginning on the date

24 of enactment of this chapter, the reduction of

25 nicotine yields of a tobacco product to zero; or
25

•S 1648 IS

1 ‘‘(C) effective not earlier than the expira2 tion of the 10-year period beginning on the date

3 of enactment of this chapter, the prohibition of

4 cigarettes or smokeless tobacco.

5 ‘‘(2) CONSIDERATIONS.—Tobacco product

6 health risk reduction standards established under

7 this section shall—

8 ‘‘(A) have as their objective reducing the

9 overall health risks to the public, including the

10 reduction in risk to the consumers of such prod11 ucts, individuals who reduce or cease the use of

12 such products, and individuals who do not initi13 ate the use of such products;

14 ‘‘(B) where necessary to meet the objec15 tives in subparagraph (A), include require16 ments—

17 ‘‘(i) with respect to the construction,

18 components, constituents, ingredients (in19 cluding tobacco additives), and properties

20 of the product, including the establishment

21 of levels of nicotine and other components,

22 ingredients (including tobacco additives),

23 and constituents of the product, or smoke

24 emitted by such products taking into ac-
26

•S 1648 IS

1 count the technological and commercial

2 feasibility of such requirements;

3 ‘‘(ii) specifying the procedures for the

4 testing of such products, including devising

5 procedures to be used by tobacco product

6 manufacturers, the Secretary, or other ap7 propriate entities, to measure relevant

8 health-related characteristics of such prod9 ucts;

10 ‘‘(iii) for the testing of such products,

11 including devising procedures to be used by

12 manufacturers, the Secretary, or other ap13 propriate entities to measure the relevant

14 health related characteristics of such prod15 ucts to assess the conformity of such prod16 ucts with the applicable health risk reduc17 tion standards; and

18 ‘‘(iv) to limit the sale and distribution

19 of tobacco products to the extent author20 ized by this chapter;

21 ‘‘(C) as required under section 905, pre22 scribe certain conditions pertaining to the label23 ing and advertising of tobacco products; and

24 ‘‘(D) comply with regulations promulgated

25 by the Secretary that specify the health risk as-
27

•S 1648 IS

1 sessment procedures for the testing of tobacco

2 and nontobacco constituents contained in to3 bacco products and determinations concerning

4 such products under subsection (d).

5 ‘‘(3) PROCEDURE FOR GENERAL PROHIBITION

6 OF TOBACCO PRODUCTS AND ELIMINATION OF NICO7 TINE.—

8 ‘‘(A) NONDELEGATION.—The Secretary

9 may not delegate the authority provided under

10 this section to promulgate a regulation that re11 sults in a general prohibition of a class of to12 bacco products or elimination of nicotine.

13 ‘‘(B) CONGRESSIONAL REVIEW.—In ac14 cordance with section 801 of title 5, United

15 States Code, Congress shall review, and may

16 disapprove, any rule of the Secretary establish17 ing, amending, or revoking a tobacco product

18 health risk reduction standard, except that with

19 respect to a standard that results in a general

20 prohibition of cigarettes or smokeless tobacco or

21 the elimination of nicotine, such standard shall

22 only take effect upon the date of enactment of

23 a joint resolution of approval of such standard.

24 The provisions of section 802 of title 5, United

25 States Code, relating to certain disapproval res-
28

•S 1648 IS

1 olutions shall apply to the consideration of any

2 joint resolution of approval under this sub3 section.

4 ‘‘(d) TOBACCO PRODUCTS RISK ASSESSMENT

5 STANDARDS.—

6 ‘‘(1) TOBACCO CONSTITUENTS.—The health

7 risk reduction standards promulgated under sub8 section (c)(2)(D) with respect to the testing of to9 bacco products shall include provisions relating to

10 the assessment of the health risks posed by the com11 ponents of tobacco, including but not limited to nico12 tine and tar, and by tobacco use including carbon13 monoxide.

14 ‘‘(2) NONTOBACCO INGREDIENTS.—

15 ‘‘(A) IN GENERAL.—The health risk reduc16 tion regulations under subsection (c)(2)(D) with

17 respect to the testing of nontobacco ingredients

18 used in tobacco products—

19 ‘‘(i) during the 5-year period begin20 ning on the date of enactment of this chap21 ter, shall apply to new ingredients (those

22 ingredients that were not previously used

23 in such products on such date of enact24 ment) used in such products or such other
29

•S 1648 IS

1 ingredients for which the Secretary re2 quires testing; and

3 ‘‘(ii) after the expiration of the 5-year

4 period described in clause (i), shall apply

5 to all ingredients used in such products.

6 ‘‘(B) IMPLEMENTATION.—In carrying out

7 this section, all requirements with respect to

8 nontobacco ingredients, substances, and com9 pounds shall be implemented in accordance with

10 subparagraph (A).

11 ‘‘(3) HEALTH RISK ASSESSMENTS.—

12 ‘‘(A) REQUIREMENT.—Not later than 5

13 years after the date of enactment of this chap14 ter, and annually thereafter, each manufacturer

15 shall submit to the Secretary a health risk as16 sessment for each ingredient, substance, or

17 compound that is listed under section 902(a)(1)

18 with respect to each brand and subbrand of to19 bacco product manufactured by each such man20 ufacturer.

21 ‘‘(B) AVAILABILITY OF NEW INFORMA22 TION.—The Secretary may include in the regu23 lations promulgated under this section, provi24 sions that permit or, as appropriate, require

25 manufacturers to, in subsequent years, revise
30

•S 1648 IS

1 information that was submitted under subpara2 graph (A) in previous years if new data be3 comes available to that manufacturer. Such reg4 ulations may require that a manufacturer sub5 mit a simple notification to the Secretary where

6 the manufacturer determines that no new data

7 has become available during the previous year.

8 ‘‘(C) JOINT SUBMISSION.—At the discre9 tion of the Secretary, the health risk assess10 ments under this paragraph may be conducted

11 by qualified third party organizations on behalf

12 of more than 1 manufacturer for 1 or more

13 product or ingredient, substance or compound if

14 a joint submission is consistent with the public

15 health. Such joint submissions shall be subject

16 to the brand specific requirements of subpara17 graph (A).

18 ‘‘(D) BASIS OF ASSESSMENT.—The health

19 risk assessment of an ingredient, substance, or

20 compound described in subparagraph (A)

21 shall—

22 ‘‘(i) be based on the best scientific evi23 dence available at the time of the submis24 sion of the assessment; and
31

•S 1648 IS

1 ‘‘(ii) ascertain whether there is a rea2 sonable certainty in the minds of com3 petent scientists that the ingredient, sub4 stance, or compound is not harmful in the

5 quantities used under the intended condi6 tions of use.

7 ‘‘(4) REGULATORY ACTION.—

8 ‘‘(A) ABSENCE OF A RISK ASSESSMENT.—

9 Not later than 12 months after the date of en10 actment of this chapter and subject to the re11 quirements of paragraphs (1) and (3)(A), the

12 Secretary shall promulgate regulations to pro13 hibit the use of any ingredient, substance, or

14 compound in the tobacco product of a manufac15 turer if no health risk assessment has been sub16 mitted as required under this subsection by the

17 manufacturer for the ingredient, substance, or

18 compound.

19 ‘‘(B) REVIEW OF HEALTH RISK ASSESS20 MENTS.—

21 ‘‘(i) APPROVAL, CONDITIONAL AP22 PROVAL, OR DISAPPROVAL.—The Secretary

23 shall approve or disapprove of, or condi24 tion, the use of the ingredient, substance,

25 or compound that was the subject of the
32

•S 1648 IS

1 assessment under this subsection within

2 180 days of the date on which the health

3 risk assessment is received and provide no4 tice of such approval or disapproval to the

5 manufacturer. The manufacturer may con6 tinue to use ingredients, substances, or

7 compounds that are the subject of such an

8 assessment until the Secretary disapproves

9 or conditions such ingredient, substance, or

10 compound. The Secretary shall establish a

11 procedure to allow manufacturers adequate

12 time to comply with any such condition or

13 disapproval.

14 ‘‘(ii) GENERAL APPLICABILITY.—At

15 the discretion of the Secretary, the ap16 proval, conditional, approval, or dis17 approval of a particular ingredient, sub18 stance, or compound under clause (i) may

19 by regulation be made generally applicable

20 to tobacco product manufacturers or a sub21 group of such manufacturers. In the case

22 of a conditional approval, the Secretary

23 shall develop a procedure to enable manu24 facturers to certify that the condition will

25 be complied with.
33

•S 1648 IS

1 ‘‘(iii) INACTION BY SECRETARY.—If

2 the Secretary fails to act with respect to

3 an assessment during the period referred

4 to in clause (i), the manufacturer submit5 ting the assessment may continue to use

6 the ingredient, substance, or compound in7 volved until such time as the Secretary

8 makes a final decision, or the succeeding

9 annual risk assessment is submitted by the

10 manufacturer and the ingredient, sub11 stance, or compound is subsequently dis12 approved or conditioned. The Secretary

13 shall establish a procedure to allow manu14 facturers adequate time to comply with

15 any such condition or disapproval.

16 ‘‘(e) COMPLIANCE.—

17 ‘‘(1) IN GENERAL.—Health risk reduction

18 standards under this section shall apply to all to19 bacco products to which such standards are relevant.

20 ‘‘(2) LIMITATION.—During the period in which

21 a regulation promulgated under this section estab22 lishing a health risk reduction standard is in effect,

23 a tobacco product shall not be considered to be in

24 violation of section 301 if such product is in compli-
34

•S 1648 IS

1 ance with such regulation, and the requirements of

2 sections 904 and 905.

3 ‘‘(f) EVALUATION.—The Secretary shall periodically

4 evaluate the effectiveness of tobacco product health risk

5 reduction standards to determine whether such standards

6 should be amended to reflect new medical, scientific, or

7 technological information.

8 ‘‘SEC. 904. GOOD MANUFACTURING PRACTICE STANDARDS.

9 ‘‘(a) AUTHORITY.—

10 ‘‘(1) IN GENERAL.—The Secretary shall, in ac11 cordance with subsections (a) and (b) of section 903,

12 prescribe regulations requiring that the methods

13 used in, and the facilities and controls used for, the

14 manufacture, packing, and storage of a tobacco

15 product conform to current good manufacturing

16 practice, as prescribed in such regulations, to ensure

17 that such products will be in compliance with this

18 chapter.

19 ‘‘(2) REGISTRATION.—The regulations promul20 gated under paragraph (1) shall require that all to21 bacco product manufacturers register with the Sec22 retary.

23 ‘‘(3) SPECIAL CONSULTATION PROCEDURES.—

24 In developing and promulgating any regulation

25 under paragraph (1) the Secretary shall afford the
35

•S 1648 IS

1 Tobacco Products Scientific Advisory Committee es2 tablished under section 909 an opportunity (with a

3 reasonable time period) to submit recommendations

4 in response to the notice of proposed rulemaking.

5 ‘‘(4) LIMITATION.—Good manufacturing prac6 tice regulations described in paragraph (1) shall be

7 appropriate for the manufacture of a product de8 rived from a raw agricultural commodity for which

9 no therapeutic claim is made.

10 ‘‘(b) PESTICIDE RESIDUES.—The regulations pro11 mulgated under subsection (a) shall at a minimum re12 quire, after consultation with the Administrator of the En13 vironmental Protection Agency, the development and ad14 herence to applicable tolerances with respect to pesticide

15 chemical residues in finished tobacco products, except that

16 such tolerances shall only apply if the Administrator deter17 mines that such tolerances are necessary to prevent such

18 residues from being injurious to health when used in to19 bacco products.

20 ‘‘(c) PETITIONS FOR EXEMPTIONS AND

21 VARIANCES.—

22 ‘‘(1) IN GENERAL.—Any person subject to any

23 requirement prescribed by regulations under sub24 section (a) may petition the Secretary for an exemp25 tion or variance from such requirement. Such a peti-
36

•S 1648 IS

1 tion shall be submitted to the Secretary in such form

2 and manner as the Secretary shall by regulation pre3 scribe and shall—

4 ‘‘(A) in the case of a petition for an ex5 emption from a requirement, set forth the basis

6 for the petitioner’s determination that compli7 ance with the requirement is not required to en8 sure that the tobacco product is in compliance

9 with section 903;

10 ‘‘(B) in the case of a petition for a vari11 ance from a requirement, set forth the methods

12 proposed to be used in, and the facilities and

13 controls proposed to be used for, the manufac14 ture, packing, and storage of the product in lieu

15 of the methods, facilities, and controls pre16 scribed by the requirement; and

17 ‘‘(C) contain such other information as the

18 Secretary shall prescribe.

19 ‘‘(2) TOBACCO PRODUCT REQUIREMENTS WAIV20 ER BOARD.—

21 ‘‘(A) AUTHORITY.—The Secretary shall es22 tablish a Tobacco Product Requirements Waiv23 er Board (referred to in this paragraph as the

24 ‘Waiver Board’) to provide advice and make

25 recommendations to the Secretary with respect
37

•S 1648 IS

1 to the approval or disapproval of petitions sub2 mitted under paragraph (1).

3 ‘‘(B) MEMBERSHIP.—The Waiver Board

4 shall be composed of 9 members to be ap5 pointed by the Secretary, of which—

6 ‘‘(i) 3 members shall be appointed

7 from among individuals who are officers or

8 employees of the Federal Government or a

9 State or local government;

10 ‘‘(ii) 2 members shall be appointed

11 from among individuals who are represent12 atives of the interests of the cigarette and

13 smokeless tobacco industries;

14 ‘‘(iii) 2 members shall be appointed

15 from among individuals who are represent16 atives of the interests of physicians and

17 other health professionals; and

18 ‘‘(iv) 2 members shall be appointed

19 from among individuals who are represent20 atives of the interests of the general public.

21 ‘‘(C) CHAIRPERSON.—The Secretary shall

22 designate 1 of the members of the Waiver

23 Board to serve as the Chairperson.

24 ‘‘(D) COMPENSATION AND EXPENSES.—
38

•S 1648 IS

1 ‘‘(i) COMPENSATION.—Members of

2 the Waiver Board who are not officers or

3 employees of the United States, while at4 tending conferences or meetings of the

5 Waiver Board or otherwise serving at the

6 request of the Secretary, shall be entitled

7 to receive compensation at rates to be fixed

8 by the Secretary, which rates may not ex9 ceed the daily equivalent of the rate of pay

10 for level 4 of the Senior Executive Sched11 ule under section 5382 of title 5, United

12 States Code, for each day (including trav13 eltime) they are so engaged.

14 ‘‘(ii) EXPENSES.—While conducting

15 the business of the Waiver Board away

16 from their homes or regular places of busi17 ness, each member may be allowed travel

18 expenses, including per diem in lieu of sub19 sistence, as authorized by section 5703 of

20 title 5 of the United States Code for per21 sons in the Government service employed

22 intermittently.

23 ‘‘(3) ACTION ON PETITION.—

24 ‘‘(A) IN GENERAL.—Not later than 120

25 days of the date on which the Secretary receives
39

•S 1648 IS

1 the recommendations of the Waiver Board, the

2 Secretary shall issue an order approving or de3 nying a petition submitted under paragraph (1).

4 The Secretary may approve—

5 ‘‘(i) a petition for an exemption for a

6 tobacco product from a requirement if the

7 Secretary determines that compliance with

8 such requirement is not required to assure

9 that the product will comply with this sec10 tion and is otherwise consistent with the

11 public health; and

12 ‘‘(ii) a petition for a variance for a to13 bacco product from a requirement if the

14 Secretary determines that the methods to

15 be used in, and the facilities and controls

16 to be used for, the manufacture, packing,

17 and storage of the product in lieu of the

18 methods, controls, and facilities prescribed

19 by the requirement are sufficient to ensure

20 that the product will comply with this sec21 tion and is otherwise in compliance with

22 the public health.

23 ‘‘(B) CONDITIONS.—An order of the Sec24 retary approving a petition for a variance shall

25 prescribe such conditions respecting the meth-
40

•S 1648 IS

1 ods used in, and the facilities and controls used

2 for, the manufacture, packing, and storage of

3 the tobacco product to be granted the variance

4 under the petition as may be necessary to en5 sure that the product will comply with this sec6 tion.

7 ‘‘(4) INFORMAL HEARING.—After the issuance

8 of an order under paragraph (3) respecting a peti9 tion, the petitioner shall have an opportunity for an

10 informal hearing on such order.

11 ‘‘(d) AGRICULTURAL PRODUCERS.—The Secretary

12 may not promulgate any regulation under this section that

13 has the effect of placing regulatory burdens on tobacco

14 producers (as such term is used for purposes of the Agri15 cultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.)

16 and the Agricultural Act of 1949 (7 U.S.C. 1441 et seq.))

17 in excess of the regulatory burdens generally placed on

18 other agricultural commodity producers.

19 ‘‘(e) EFFECTIVE DATE OF CERTAIN REGULA20 TIONS.—Regulations promulgated under this section shall

21 be implemented over a 2-year period in consultation with

22 manufacturers of tobacco products and tobacco producers.

23 ‘‘SEC. 905. TOBACCO PRODUCT LABELING, WARNING, AND

24 PACKAGING STANDARDS.

25 ‘‘(a) CIGARETTES.—
41

•S 1648 IS

1 ‘‘(1) IN GENERAL.—

2 ‘‘(A) PACKAGING.—It shall be unlawful for

3 any person to manufacture, package, or import

4 for sale or distribution within the United States

5 any cigarettes the package of which fails to

6 bear, in accordance with the requirements of

7 this subsection, one of the following statements:

8 ‘‘WARNING: Cigarettes Are Addictive.

9 ‘‘WARNING: Tobacco Smoke Can Harm

10 Your Children.

11 ‘‘WARNING: Cigarettes Cause Fatal Lung

12 Disease.

13 ‘‘WARNING: Cigarettes Cause Cancer.

14 ‘‘WARNING: Cigarettes Cause Strokes

15 And Heart Disease.

16 ‘‘WARNING: Smoking During Pregnancy

17 Can Harm Your Baby.

18 ‘‘WARNING: Smoking Can Kill You.

19 ‘‘WARNING: Tobacco Smoke Causes

20 Fatal Lung Disease In Nonsmokers.

21 ‘‘WARNING: Quitting Smoking Now

22 Greatly Reduces Serious Risks To Your

23 Health.

24 ‘‘(B) ADVERTISING.—It shall be unlawful

25 for any manufacturer or importer of cigarettes
42

•S 1648 IS

1 to advertise or cause to be advertised within the

2 United States any cigarette unless the advertis3 ing bears, in accordance with the requirements

4 of this subsection, one of the following state5 ments:

6 ‘‘WARNING: Cigarettes Are Addictive.

7 ‘‘WARNING: Tobacco Smoke Can Harm

8 Your Children.

9 ‘‘WARNING: Cigarettes Cause Fatal Lung

10 Disease.

11 ‘‘WARNING: Cigarettes Cause Cancer.

12 ‘‘WARNING: Cigarettes Cause Strokes

13 And Heart Disease.

14 ‘‘WARNING: Smoking During Pregnancy

15 Can Harm Your Baby.

16 ‘‘WARNING: Smoking Can Kill You.

17 ‘‘WARNING: Tobacco Smoke Causes

18 Fatal Lung Disease In Nonsmokers.

19 ‘‘WARNING: Quitting Smoking Now

20 Greatly Reduces Serious Risks To Your

21 Health.

22 ‘‘(2) REQUIREMENTS FOR LABEL STATE23 MENTS.—

24 ‘‘(A) LOCATION.—Each label statement re25 quired by subparagraph (A) of paragraph (1)
43

•S 1648 IS

1 shall be located on the upper portion of the

2 front panel of the cigarette package (or carton)

3 and occupy not less than 25 percent of such

4 front panel.

5 ‘‘(B) TYPE AND COLOR.—With respect to

6 each label statement required by subparagraph

7 (A) of paragraph (1), the phrase ‘WARNING’

8 shall appear in capital letters and the label

9 statement shall be printed in 17 point type with

10 adjustments as determined appropriate by the

11 Secretary to reflect the length of the required

12 statement. All the letters in the label statement

13 shall appear in conspicuous and legible type, in

14 contrast by typography, layout, or color with all

15 other printed material on the package, and be

16 printed in an alternating black-on-white and

17 white-on-black format as determined appro18 priate by the Secretary.

19 ‘‘(C) EXCEPTION.—The provisions of sub20 paragraph (A) shall not apply in the case of a

21 flip-top cigarette package (offered for sale on

22 April 1, 1997) where the front portion of the

23 flip-top does not comprise at least 25 percent of

24 the front panel. In the case of such a package,

25 the label statement required by subparagraph
44

•S 1648 IS

1 (A) of paragraph (1) shall occupy the entire

2 front portion of the flip top.

3 ‘‘(3) REQUIREMENTS FOR ADVERTISING.—

4 ‘‘(A) LOCATION.—Each label statement re5 quired by subparagraph (B) of paragraph (1)

6 shall occupy not less than 20 percent of the

7 area of the advertisement involved.

8 ‘‘(B) TYPE AND COLOR.—

9 ‘‘(i) TYPE.—With respect to each

10 label statement required by subparagraph

11 (B) of paragraph (1), the phrase ‘WARN12 ING’ shall appear in capital letters and the

13 label statement shall be printed in the fol14 lowing types:

15 ‘‘(I) With respect to whole page

16 advertisements on broadsheet news17 paper—45 point type.

18 ‘‘(II) With respect to half page

19 advertisements on broadsheet news20 paper—39 point type.

21 ‘‘(III) With respect to whole page

22 advertisements on tabloid news23 paper—39 point type.
45

•S 1648 IS

1 ‘‘(IV) With respect to half page

2 advertisements on tabloid news3 paper—27 point type.

4 ‘‘(V) With respect to DPS maga5 zine advertisements—31.5 point type.

6 ‘‘(VI) With respect to whole page

7 magazine advertisements—31.5 point

8 type.

9 ‘‘(VII) With respect to 28cm x 3

10 column advertisements—22.5 point

11 type.

12 ‘‘(VIII) With respect to 20cm x 2

13 column advertisements—15 point

14 type.

15 The Secretary may revise the required type

16 sizes as the Secretary determines appro17 priate within the 20 percent requirement.

18 ‘‘(ii) COLOR.—All the letters in the

19 label statement under this subparagraph

20 shall appear in conspicuous and legible

21 type, in contrast by typography, layout, or

22 color with all other printed material in the

23 advertisement, and be printed in an alter24 nating black-on-white and white-on-black
46

•S 1648 IS

1 format as determined appropriate by the

2 Secretary.

3 ‘‘(4) ROTATION OF LABEL STATEMENTS.—

4 ‘‘(A) IN GENERAL.—Except as provided in

5 subparagraph (B), the label statements speci6 fied in subparagraphs (A) and (B) of paragraph

7 (1) shall be rotated by each manufacturer or

8 importer of cigarettes quarterly in alternating

9 sequence on packages of each brand of ciga10 rettes manufactured by the manufacturer or

11 importer and in the advertisements for each

12 such brand of cigarettes in accordance with a

13 plan submitted by the manufacturer or im14 porter and approved by the Secretary. The Sec15 retary shall approve a plan submitted by a

16 manufacturer or importer of cigarettes which

17 will provide the rotation required by this para18 graph and which assures that all of the label

19 statements required by subparagraphs (A) and

20 (B) will be displayed by the manufacturer or

21 importer at the same time.

22 ‘‘(B) APPLICATION OF OTHER ROTATION

23 REQUIREMENTS.—

24 ‘‘(i) IN GENERAL.—A manufacturer

25 or importer of cigarettes may apply to the
47

•S 1648 IS

1 Secretary to have the rotation schedule de2 scribed in clause (iii) apply with respect to

3 a brand style of cigarettes manufactured

4 or imported by such manufacturer or im5 porter if—

6 ‘‘(I) the number of cigarettes of

7 such brand style sold in the fiscal year

8 of the manufacturer or importer pre9 ceding the submission of the application is less than 1 10 ⁄4 of 1 percent of all

11 the cigarettes sold in the United

12 States in such year; and

‘‘(II) more than 1 13 ⁄2 of the ciga14 rettes manufactured or imported by

15 such manufacturer or importer for

16 sale in the United States are pack17 aged into brand styles which meet the

18 requirements of subclause (I).

19 If an application is approved by the Sec20 retary, the rotation schedule described in

21 clause (iii) shall apply with respect to the

22 applicant during the 1-year period begin23 ning on the date of the application ap24 proval.
48

•S 1648 IS

1 ‘‘(ii) PLAN.—An applicant under

2 clause (i) shall include in its application a

3 plan under which the label statements

4 specified in subparagraph (A) of paragraph

5 (1) will be rotated by the applicant manu6 facturer or importer in accordance with the

7 label rotation described in clause (iii).

8 ‘‘(iii) OTHER ROTATION REQUIRE9 MENTS.—Under the rotation schedule

10 which the manufacturer or importer with

11 an approved application may put into ef12 fect, each of the label statements specified

13 in subparagraph (A) of paragraph (1) shall

14 appear on the packages of each brand style

15 of cigarettes with respect to which the ap16 plication was approved an equal number of

17 times within the 12-month period begin18 ning on the date of the approval by the

19 Secretary of the application.

20 ‘‘(5) APPLICATION OF REQUIREMENT.—Para21 graph (1) does not apply to a distributor or retailer

22 of cigarettes who does not manufacture, package, or

23 import cigarettes for sale or distribution within the

24 United States.
49

•S 1648 IS

1 ‘‘(6) TELEVISION AND RADIO ADVERTISING.—It

2 shall be unlawful to advertise cigarettes and little ci3 gars on any medium of electronic communications

4 subject to the jurisdiction of the Federal Commu5 nications Commission.

6 ‘‘(b) SMOKELESS TOBACCO PRODUCTS.—

7 ‘‘(1) IN GENERAL.—

8 ‘‘(A) PACKAGING.—It shall be unlawful for

9 any person to manufacture, package, or import

10 for sale or distribution within the United States

11 any smokeless tobacco product the package of

12 which fails to bear, in accordance with the re13 quirements of this subsection, one of the follow14 ing statements:

15 WARNING: This Product May Cause

16 Mouth Cancer.

17 WARNING: This Product May Cause

18 Gum Disease And Tooth Loss.

19 WARNING: This Product Is Not A Safe

20 Alternative To Cigarettes.

21 WARNING: Smokeless Tobacco Is Addict22 ive.

23 ‘‘(B) ADVERTISING.—It shall be unlawful

24 for any manufacturer or importer of smokeless

25 tobacco products to advertise or cause to be ad-
50

•S 1648 IS

1 vertised within the United States any smokeless

2 tobacco product unless the advertising bears, in

3 accordance with the requirements of this sub4 section, one of the following statements:

5 WARNING: This Product May Cause

6 Mouth Cancer.

7 WARNING: This Product May Cause

8 Gum Disease And Tooth Loss.

9 WARNING: This Product Is Not A Safe

10 Alternative To Cigarettes.

11 WARNING: Smokeless Tobacco Is Addict12 ive.

13 ‘‘(2) REQUIREMENTS FOR LABEL STATE14 MENTS.—

15 ‘‘(A) LOCATION.—Each label statement re16 quired by subparagraph (A) of paragraph (1)

17 shall be located on the principal display panel

18 of the product and occupy not less than 25 per19 cent of such panel.

20 ‘‘(B) TYPE AND COLOR.—With respect to

21 each label statement required by subparagraph

22 (A) of paragraph (1), the phrase ‘WARNING’

23 shall appear in capital letters and the label

24 statement shall be printed in 17 point type with

25 adjustments as determined appropriate by the
51

•S 1648 IS

1 Secretary to reflect the length of the required

2 statement. All the letters in the label statement

3 shall appear in conspicuous and legible type in

4 contrast by typography, layout, or color with all

5 other printed material on the package and be

6 printed in an alternating black on white and

7 white on black format as determined appro8 priate by the Secretary.

9 ‘‘(3) ADVERTISING AND ROTATION.—The provi10 sions of paragraphs (3) and (4)(A) of subsection (a)

11 shall apply to advertisements for smokeless tobacco

12 products and the rotation of the statements required

13 under paragraph (1)(A) on such products.

14 ‘‘(4) APPLICATION OF REQUIREMENT.—Para15 graph (1) does not apply to a distributor or retailer

16 of smokeless tobacco products who does not manu17 facture, package, or import such products for sale or

18 distribution within the United States.

19 ‘‘(5) TELEVISION AND RADIO ADVERTISING.—It

20 shall be unlawful to advertise smokeless tobacco on

21 any medium of electronic communications subject to

22 the jurisdiction of the Federal Communications

23 Commission.

24 ‘‘(c) ADDITIONAL TOBACCO PRODUCT STATE25 MENTS.—
52

•S 1648 IS

1 ‘‘(1) REQUIREMENT.—Each manufacturer, dis2 tributor, and retailer advertising or causing to be

3 advertised, disseminating or causing to be dissemi4 nated advertising concerning, tobacco products oth5 erwise permitted under this chapter shall include, in

6 a type size and format as the Secretary may pre7 scribe in a regulation promulgated under subsection

8 (d), the product name and a statement of the gen9 eral use of the product as provided for in paragraph

10 (2).

11 ‘‘(2) GENERAL USE STATEMENTS.—

12 ‘‘(A) CIGARETTES.—A statement of gen13 eral use for cigarettes or cigarette tobacco is as

14 follows (whichever is appropriate):

15 ‘Cigarettes—A Dangerous Tobacco Product In16 tended For Use Only By Persons 18 or Older.

17 ‘Cigarette Tobacco—A Dangerous Tobacco

18 Product Intended For Use Only By Persons 18

19 or Older.

20 ‘‘(B) SMOKELESS TOBACCO.—A statement

21 of general use for a smokeless tobacco product

22 is as follows (whichever is appropriate):

23 ‘Loose Leaf Chewing Tobacco—A Dangerous

24 Tobacco Product Intended For Use Only By

25 Persons 18 or Older.
53

•S 1648 IS

1 ‘Plug Chewing Tobacco—A Dangerous Tobacco

2 Product Intended For Use Only By Persons 18

3 or Older.

4 ‘Twist Chewing Tobacco—A Dangerous To5 bacco Product Intended For Use Only By Per6 sons 18 or Older.

7 ‘Moist Snuff—A Dangerous Tobacco Product

8 Intended For Use Only By Persons 18 or

9 Older.

10 ‘Dry Snuff—A Dangerous Tobacco Product In11 tended For Use Only By Persons 18 or Older.

12 ‘‘(d) REGULATIONS.—

13 ‘‘(1) IN GENERAL.—Not later than 180 days

14 after the date of the enactment of this title, the Sec15 retary shall promulgate such regulations as may be

16 necessary to implement subsections (a), (b), and (c).

17 ‘‘(2) AUTHORITY TO REVISE TOBACCO PRODUCT

18 LABELING STATEMENTS.—

19 ‘‘(A) IN GENERAL.—The Secretary may by

20 informal notice and comment rulemaking

21 change the text of any of the statements re22 quired under subsections (a) and (b). A rule

23 promulgated under this subparagraph shall not

24 become effective prior to the expiration of the

25 1-year period beginning on the date on which
54

•S 1648 IS

1 the final rule is published in the Federal Reg2 ister.

3 ‘‘(B) LIMITATION.—The Secretary may

4 not promulgate any rule under subparagraph

5 (A) during the 5-year period beginning on the

6 effective date of the PAST Act unless the Sec7 retary can demonstrate extraordinary cir8 cumstances.

9 ‘‘(C) ASSESSMENTS.—The Secretary shall,

10 as scientific data regarding the effectiveness of

11 warning labels in deterring youth smoking be12 comes available, periodically (but not more fre13 quently that once every 3 years) assess the effi14 cacy of current labels and the public health ben15 efits of revising such labels.

16 ‘‘(3) COMMON OR USUAL NAMES.—The Sec17 retary, in accordance with the procedures set forth

18 in section 902, shall promulgate regulations requir19 ing the disclosure to the public of the common or

20 usual name of each ingredient (other than tobacco,

21 water, or reconstituted tobacco sheet made wholly

22 from tobacco) contained in a tobacco product in de23 scending order of predominance by weight, except

24 that such regulations—
55

•S 1648 IS

1 ‘‘(A) may provide for the disclosure of

2 spices, flavorings, and colorings without naming

3 each spice, flavoring, or coloring; and

4 ‘‘(B) may exempt from disclosure inciden5 tal additives, including processing aids and

6 chemical preservatives, that are present in a to7 bacco product at insignificant levels that the

8 Secretary determines do not have any func9 tional effect or health risk.

10 ‘‘(e) EXPORTS.—Packages of cigarettes or smokeless

11 tobacco products manufactured, imported, or packaged—

12 ‘‘(1) for export from the United States; or

13 ‘‘(2) for delivery to a vessel or aircraft, as sup14 plies, for consumption beyond the jurisdiction of the

15 internal revenue laws of the United States;

16 shall be exempt from the requirements of this chapter, but

17 such exemptions shall not apply to cigarettes or smokeless

18 tobacco products manufactured, imported, or packaged for

19 sale or distribution to members or units of the Armed

20 Forces of the United States located outside of the United

21 States.

22 ‘‘SEC. 906. RESTRICTION ON MARKETING AND ADVERTIS23 ING.

24 ‘‘(a) PROHIBITIONS ON ADVERTISING.—
56

•S 1648 IS

1 ‘‘(1) PROHIBITION ON OUTDOOR ADVERTIS2 ING.—

3 ‘‘(A) IN GENERAL.—No manufacturer, dis4 tributor, or retailer may use any form of out5 door tobacco product advertising, including bill6 boards, posters, placards, or other fixed or mov7 able outdoor product advertising.

8 ‘‘(B) STADIA AND ARENAS.—Except as

9 otherwise provided in this chapter, a manufac10 turer, distributor, or retailer shall not advertise

11 tobacco products in any arena or stadium where

12 athletic, musical, artistic, or other social or cul13 tural events or activities occur.

14 ‘‘(2) PROHIBITION ON USE OF HUMAN IMAGES

15 AND CARTOONS.—No manufacturer, distributor, or

16 retailer may use a human image or a cartoon char17 acter or cartoon-type character in its advertising, la18 beling, or promotional material with respect to a to19 bacco product.

20 ‘‘(3) PROHIBITION ON ADVERTISING ON THE

21 INTERNET.—No manufacturer, distributor, or re22 tailer may use the Internet to advertise tobacco

23 products unless such an advertisement is inaccessible

24 in or from the United States.
57

•S 1648 IS

1 ‘‘(4) PROHIBITION ON POINT-OF-SALE ADVER2 TISING.—

3 ‘‘(A) IN GENERAL.—Except as otherwise

4 provided in this paragraph, no manufacturer,

5 distributor, or retailer may use point-of-sale ad6 vertising of tobacco products.

7 ‘‘(B) PERMISSIBLE ADVERTISING.—

8 ‘‘(i) IN GENERAL.—Each manufac9 turer of tobacco products may display not

10 more than 2 separate point-of-sale adver11 tisements in or at each location at which

12 tobacco products are offered for sale.

13 ‘‘(ii) MARKET SHARE MANUFACTUR14 ERS.—A manufacturer with at least 25

15 percent of the market share of the tobacco

16 product involved may display an additional

17 point-of-sale advertisement in or at each

18 location at which tobacco products are of19 fered for sale.

20 ‘‘(iii) RETAILERS.—A retailer may

21 have not more than 1 point-of-sale adver22 tisement relating to the retailer’s own or

23 its wholesaler’s contracted retailer or pri24 vate label brand of tobacco product. No

25 manufacturer or distributor may enter into
58

•S 1648 IS

1 any arrangement with a retailer to limit

2 the ability of the retailer to display any

3 form of permissible point-of-sale advertise4 ment or promotional material originating

5 with another manufacturer or distributor.

6 ‘‘(C) LIMITATIONS.—

7 ‘‘(i) IN GENERAL.—A point of sale ad8 vertisement permitted under this para9 graph shall be comprised of a display area

10 that is not larger than 576 square inches

11 (either individually or in the aggregate)

12 and shall consist only of black letters on a

13 white background or other recognized typo14 graphical marks. Such advertisement shall

15 not be attached to nor located within 2 feet

16 of any fixture on which candy is displayed

17 for sale.

18 ‘‘(ii) AUDIO AND VIDEO FORMATS.—

19 Audio and video advertisements permitted

20 under subsection (c)(3) may be distributed

21 to individuals who are 18 years of age or

22 older at point of sale but may not be

23 played or viewed at such point of sale.

24 ‘‘(iii) DISPLAY FIXTURES.—Display

25 fixtures in the form of signs consisting of
59

•S 1648 IS

1 brand name and price and not larger than

2 2 inches in height are permitted.

3 ‘‘(D) DEFINITION.—For purposes of this

4 paragraph, the term ‘point-of-sale advertising’

5 means all printed or graphical materials bearing

6 the brand name (alone or in conjunction with

7 any other word), logo, motto, selling message,

8 recognizable color or pattern of colors, or any

9 other indicia of product identification similar or

10 identical to those used for tobacco products

11 which, when used for its intended purpose, can

12 reasonably be anticipated to be seen by cus13 tomers at a location at which tobacco products

14 are offered for sale.

15 ‘‘(b) GENERAL RESTRICTIONS.—

16 ‘‘(1) RESTRICTION ON PRODUCT NAMES.—A

17 manufacturer shall not use a trade or brand name

18 of a nontobacco product as the trade or brand name

19 for a cigarette or smokeless tobacco product, except

20 for a tobacco product whose trade or brand name

21 was on both a tobacco product and a nontobacco

22 product that were sold in the United States on or

23 before January 1, 1995.

24 ‘‘(2) ADVERTISING LIMITED TO FDA SPECIFIED

25 MEDIA.—
60

•S 1648 IS

1 ‘‘(A) IN GENERAL.—A manufacturer, dis2 tributor, or retailer may, in accordance with

3 this chapter, disseminate or cause to be dis4 seminated advertising or labeling which bears a

5 tobacco product brand name (alone or in con6 junction with any other word) or any other indi7 cia of tobacco product identification only in

8 newspapers, in magazines, in periodicals or

9 other publications (whether periodic or limited

10 distribution), on billboards, posters and plac11 ards in accordance with subsection (a)(1), in

12 nonpoint-of-sale promotional material (including

13 direct mail), in point-of-sale promotional mate14 rial, and in audio or video formats delivered at

15 a point-of-sale.

16 ‘‘(B) LIMITATION.—A manufacturer, dis17 tributor, or retailer that intends to disseminate,

18 or to cause to be disseminated, advertising or

19 labeling for a tobacco product in a medium that

20 is not described in subparagraph (A) shall no21 tify the Commissioner not less than 30 days

22 prior to the date on which such medium is to

23 be used. Such notice shall describe the medium

24 and discuss the extent to which the advertising
61

•S 1648 IS

1 or labeling may be seen by individuals who are

2 under 18 years of age.

3 ‘‘(3) RESTRICTION ON PLACEMENT IN ENTER4 TAINMENT MEDIA.—

5 ‘‘(A) IN GENERAL.—No payment shall be

6 made by any manufacturer, distributor, or re7 tailer for the placement of any tobacco product

8 or tobacco product package or advertisement—

9 ‘‘(i) as a prop in any television pro10 gram or motion picture produced for view11 ing by the general public; or

12 ‘‘(ii) in a video or on a video game

13 machine.

14 ‘‘(B) VIDEO GAME.—The term ‘video

15 game’ means any electronic amusement device

16 that utilizes a computer, microprocessor, or

17 similar electronic circuitry and its own cathode

18 ray tube, or is designed to be used with a tele19 vision set or a monitor, that interacts with the

20 user of the device.

21 ‘‘(4) RESTRICTIONS ON GLAMORIZATION OF TO22 BACCO PRODUCTS.—No direct or indirect payment

23 shall be made by any manufacturer, distributor, or

24 retailer to any entity for the purpose of promoting

25 the image or use of a tobacco product through print
62

•S 1648 IS

1 or film media that appeals to individuals under 18

2 years of age or through a live performance by an en3 tertainment artist that appeals to such individuals.

4 ‘‘(c) FORMAT AND CONTENT REQUIREMENTS FOR

5 LABELING AND ADVERTISING.—

6 ‘‘(1) IN GENERAL.—Except as provided in para7 graphs (2) and (3), each manufacturer, distributor,

8 and retailer advertising or causing to be advertised,

9 disseminating or causing to be disseminated, any la10 beling or advertising for a tobacco product shall use

11 only black text on a white background.

12 ‘‘(2) CERTAIN ADVERTISING EXCEPTED.—

13 ‘‘(A) IN GENERAL.—Paragraph (1) shall

14 not apply to advertising—

15 ‘‘(i) in any facility where vending ma16 chines and self-service displays are per17 mitted under this chapter if the advertising

18 involved—

19 ‘‘(I) is not visible from outside of

20 the facility; and

21 ‘‘(II) is affixed to a wall or fix22 ture in the facility; and

23 ‘‘(ii) that appears in any publication

24 (whether periodic, limited, or controlled

25 distribution) that the manufacturer, dis-
63

•S 1648 IS

1 tributor, or retailer demonstrates is an

2 adult publication.

3 ‘‘(B) ADULT PUBLICATION.—For purposes

4 of subparagraph (A)(ii), the term ‘adult publi5 cation’ means a newspaper, magazine, periodi6 cal, or other publication—

7 ‘‘(i) whose readers under 18 years of

8 age constitute 15 percent or less of the

9 total readership as measured by competent

10 and reliable survey evidence; or

11 ‘‘(ii) that is read by fewer than

12 2,000,000 individuals who are under 18

13 years of age as measured by competent

14 and reliable survey evidence.

15 ‘‘(3) AUDIO OR VIDEO FORMATS.—Each manu16 facturer, distributor, and retailer advertising or

17 causing to be advertised any advertising for a to18 bacco product in an audio or video format shall com19 ply with the following:

20 ‘‘(A) With respect to an audio format, the

21 advertising shall be limited to words only with

22 no music or sound effects.

23 ‘‘(B) With respect to a video format, the

24 advertising shall be limited to static black text

25 only on a white background. Any audio with the
64

•S 1648 IS

1 video advertising shall be limited to words only

2 with no music or sound effects.

3 ‘‘(d) BAN ON NONTOBACCO ITEMS AND SERVICES,

4 CONTESTS AND GAMES OF CHANCE, AND SPONSORSHIP

5 OF EVENTS.—

6 ‘‘(1) BAN ON ALL NONTOBACCO MERCHAN7 DISE.—No manufacturer, importer, distributor, or

8 retailer shall market, license, distribute, sell, or

9 cause to be marketed, licensed, distributed or sold

10 any item (other than tobacco products) or service

11 which bears the brand name (alone or in conjunction

12 with any other word), logo, symbol, motto, selling

13 message, recognizable color or pattern of colors, or

14 any other indicia of product identification similar or

15 identifiable to those used for any brand of tobacco

16 products.

17 ‘‘(2) GIFTS, CONTESTS, AND LOTTERIES.—No

18 manufacturer, distributor, or retailer shall offer or

19 cause to be offered to any person purchasing tobacco

20 products any gift or item (other than a tobacco

21 product) in consideration of the purchase of such

22 products, or to any person in consideration of fur23 nishing evidence, such as credits, proofs-of-purchase,

24 or coupons, of such a purchase.

25 ‘‘(3) SPONSORSHIP.—
65

•S 1648 IS

1 ‘‘(A) IN GENERAL.—No manufacturer, dis2 tributor, or retailer shall sponsor or cause to be

3 sponsored any athletic, musical, artistic, or

4 other social or cultural event, or any entry or

5 team in any event, in which the brand name

6 (alone or in conjunction with any other word),

7 logo, motto, selling message, recognizable color

8 or pattern of colors, or any other indicia of

9 product identification similar or identical to

10 those used for tobacco products is used.

11 ‘‘(B) USE OF CORPORATE NAME.—A man12 ufacturer, distributor, or retailer may sponsor

13 or cause to be sponsored any athletic, musical,

14 artistic, or other social or cultural event in the

15 name of the corporation which manufactures

16 the tobacco product if—

17 ‘‘(i) both the corporate name and the

18 corporation were registered and in use in

19 the United States prior to January 1,

20 1995; and

21 ‘‘(ii) the corporate name does not in22 clude any brand name (alone or in con23 junction with any other word), logo, sym24 bol, motto, selling message, recognizable

25 color or pattern of colors, or any other in-
66

•S 1648 IS

1 dicia or product identification identical or

2 similar to, or identifiable with, those used

3 for any brand of tobacco products.

4 ‘‘SEC. 907. REDUCED RISK TOBACCO PRODUCTS.

5 ‘‘(a) REQUIREMENTS.—

6 ‘‘(1) IN GENERAL.—For purposes of this Act,

7 the term ‘Reduced Risk Tobacco Product’ means a

8 product that delivers nicotine to the human body

9 while simultaneously delivering 1 or more other toxic

10 substances to the human body, and which the Sec11 retary designates as a Reduced Risk Tobacco prod12 uct under paragraph (2).

13 ‘‘(2) DESIGNATION.—A product shall be des14 ignated by the Secretary as a Reduced Risk Tobacco

15 Product if—

16 ‘‘(A) the Secretary finds that the product

17 has the potential to reduce harm to health

18 caused by a tobacco product, based on an appli19 cation submitted by the manufacturer of the

20 product (or other responsible person) that—

21 ‘‘(i) demonstrates, on the basis of

22 chemical analysis, that use of such product

23 results in ingestion or inhalation of a sub24 stantially lower yield of toxic substances

25 than use of conventional tobacco products
67

•S 1648 IS

1 in the same category as the proposed re2 duced risk product; and

3 ‘‘(ii) demonstrates, through testing on

4 animals and short-term human testing,

5 that there is reason to believe that use of

6 the product presents substantially less risk

7 to human health than use of conventional

8 tobacco products; and

9 ‘‘(B) the manufacturer (or other person) agrees

10 to conduct studies of the long-term health effects of

11 such product (in accordance with 1 or more proto12 cols agreed upon between the manufacturer of the

13 product and the Secretary) and submit the results of

14 such study, together with underlying data, to the

15 Secretary.

16 ‘‘(3) MARKETING REQUIREMENTS.—A tobacco

17 product may be marketed as a Reduced Risk To18 bacco Product only if such product—

19 ‘‘(A) bears a label, prescribed by the Secretary,

20 stating that the product contains toxic substances

21 other than nicotine, that such product should only

22 be used by persons who use tobacco products, and

23 other relevant information;
68

•S 1648 IS

1 ‘‘(B) bears a label, as prescribed by the Sec2 retary, concerning the product’s contribution to re3 ducing harm to health; and

4 ‘‘(C) complies with requirements prescribed by

5 the Secretary relating to marketing and advertising

6 of the product, and other provisions of this chapter

7 as prescribed by the Secretary.

8 ‘‘(b) REVOCATION OF DESIGNATION.—At any time

9 after the expiration of the 5-year period beginning on the

10 date on which a tobacco product is designated as a Re11 duced Risk Tobacco Product under this section, the Sec12 retary may, after providing an opportunity for an informal

13 hearing, revoke such designation if the Secretary deter14 mines, based on information not available at the time of

15 the designation, that—

16 ‘‘(1) the finding made under subsection

17 (a)(2)(A) is no longer valid; or

18 ‘‘(2) the studies required under subsection

19 (a)(2)(B) are not conducted on a timely basis.

20 ‘‘(c) STUDIES.—The Secretary shall conduct and

21 support, through grants and contracts, studies of the role

22 of smoking cessation products and reduced risk tobacco

23 products in reducing the burden of illness and death in

24 the United States resulting from the use of tobacco prod25 ucts.
69

•S 1648 IS

1 ‘‘(d) LIMITATION.—A tobacco product that is des2 ignated as a Reduced Risk Tobacco Product that is com3 pliance with subsection (a) shall not be regulated as a

4 drug or device.

5 ‘‘(e) DEVELOPMENT OF REDUCED RISK TOBACCO

6 PRODUCT TECHNOLOGY.—

7 ‘‘(1) NOTIFICATION OF SECRETARY.—The man8 ufacturer of a tobacco product shall provide written

9 notice to the Secretary upon the development or ac10 quisition by the manufacturer of any technology that

11 would reduce the risk of such products to the health

12 of the user.

13 ‘‘(2) DETERMINATION.—Within 6 months of

14 the date on which a notice is received by the Sec15 retary under paragraph (1), the Secretary shall de16 termine whether the technology described in such

17 notice is likely to result in tobacco products that are

18 less hazardous to the health of users.

19 ‘‘(3) CONFIDENTIALITY.—The Secretary shall

20 promulgate regulations to provide a manufacturer

21 with appropriate confidentiality protections with re22 spect to technology that is the subject of a deter23 mination under paragraph (2) that is likely to result

24 in tobacco products that are less hazardous to the

25 health of users.
70

•S 1648 IS

1 ‘‘(4) LICENSING.—

2 ‘‘(A) IN GENERAL.—With respect to any

3 technology for which a notification has been

4 provided under paragraph (1), the manufac5 turer shall permit the use of such technology by

6 other manufacturers of tobacco products to

7 which this chapter applies if the manufacturer

8 elects not to develop and market such tech9 nology.

10 ‘‘(B) FEES.—The Secretary of Commerce

11 shall promulgate regulations to provide for the

12 payment of a commercially reasonable fee by

13 each manufacturer that uses the technology de14 scribed under subparagraph (A) to the manu15 facturer that submits the notice under para16 graph (1) for such technology. Such regulations

17 shall contain procedures for the resolution of

18 fee disputes between manufacturers under this

19 subparagraph through the use of expert arbitra20 tors.

21 ‘‘(f) REQUIREMENT OF MANUFACTURE AND MAR22 KETING.—

23 ‘‘(1) PURPOSE.—It is the purpose of this sub24 section to provide for a mechanism to create incen25 tives that help ensure that tobacco products that are
71

•S 1648 IS

1 designed to be less hazardous to the health of users

2 are developed, tested, and made available to consum3 ers.

4 ‘‘(2) DETERMINATION.—Upon a determination

5 by the Secretary that the manufacture of a tobacco

6 product that is less hazardous to the health of users

7 is technologically and commercially feasible, the Sec8 retary may, in accordance with this subsection and

9 through the issuance or amendment of a health risk

10 reduction standard under section 903—

11 ‘‘(A) require the disclosure of the existence

12 of such technology;

13 ‘‘(B) prohibit the use of technology that is

14 superseded by such new technology; and

15 ‘‘(C) require that manufacturers cease

16 manufacturing and marketing tobacco products

17 that do not incorporate such technology.

18 ‘‘(g) BASIS FOR DETERMINATION.—For purposes of

19 subsections (e)(2) and (f)(2), the determination as to

20 whether a tobacco product may be less hazardous to the

21 health of users shall take into account both the reduced

22 risk to the health of the user and its contribution to reduc23 ing addiction to tobacco products.
72

•S 1648 IS

1 ‘‘SEC. 908. TOBACCO PRODUCT MARKETING RESTRICTIONS.

2 ‘‘(a) IN GENERAL.—The Secretary, acting through

3 the Office of Smoking and Health of the Centers for Dis4 ease Control and Prevention, shall by regulation imple5 ment the prohibitions described in this section concerning

6 the marketing of tobacco products to minors.

7 ‘‘(b) SALES TO MINORS PROHIBITED.—No retailer

8 may distribute a tobacco product to any individual who

9 is under 18 years of age.

10 ‘‘(c) PHOTO IDENTIFICATION.—

11 ‘‘(1) REQUIREMENT.—Except as provided in

12 paragraph (2), each retailer shall verify, by means of

13 a driver’s license or other form of identification

14 issued by a government authority containing the

15 date of birth of the bearer, that no individual pur16 chasing a tobacco product is under 18 years of age.

17 ‘‘(2) EXCEPTION.—No verification under para18 graph (1) is required for any individual who is at

19 least 27 years of age.

20 ‘‘(3) LOCATION OF PRODUCTS.—Except as pro21 vided in subsection (j), a retailer shall ensure that

22 all tobacco products are located in areas where cus23 tomers do not have access to the products.

24 ‘‘(d) FACE-TO-FACE TRANSACTIONS.—Except as

25 provided in subsection (i)(1), a retailer may sell tobacco
73

•S 1648 IS

1 products only in a direct, face-to-face exchange without

2 the assistance of any electronic or mechanical device.

3 ‘‘(e) OUT-OF-PACKAGE DISTRIBUTION.—No retailer

4 may break or otherwise open a tobacco product to sell or

5 distribute to individuals portions of such product (includ6 ing individual cigarettes or a number of cigarettes that

7 is smaller than the quantity in the minimum package size,

8 or any quantity of cigarette tobacco or smokeless tobacco

9 that is smaller than the smallest package distributed by

10 the retailer for individual consumer use).

11 ‘‘(f) RETAILER COMPLIANCE WITH RESPECT TO

12 SELF-SERVICE.—Each retailer shall ensure that all to13 bacco-related self-service displays, advertising, labeling,

14 and other items that are located in the establishment of

15 the retailer and that do not comply with the requirements

16 of this section are removed or are brought into compliance

17 with the requirements of this section.

18 ‘‘(g) MINIMUM CIGARETTE PACKAGE SIZE.—Except

19 as otherwise provided in this section, no manufacturer,

20 distributor, or retailer may sell or cause to be sold, or dis21 tribute or cause to be distributed, any cigarette package

22 that contains fewer than 20 cigarettes.

23 ‘‘(h) PROHIBITION ON SAMPLING.—No manufac24 turer, distributor, or retailer may distribute or cause to

25 be distributed any free samples of any tobacco product.
74

•S 1648 IS

1 ‘‘(i) PROHIBITION ON DISTRIBUTION THROUGH

2 SELF-SERVICE MODES OF SALE.—

3 ‘‘(1) VENDING MACHINES.—Except as provided

4 in subsection (j)(1)(B), no manufacturer, distribu5 tor, or retailer may distribute or cause to be distrib6 uted any tobacco product through a vending ma7 chine.

8 ‘‘(2) OTHER DISPLAYS.—Except as provided in

9 subsection (j)(1)(C), no manufacturer, distributor,

10 or retailer may distribute or cause to be distributed

11 any tobacco product through a self-service display.

12 ‘‘(j) PERMITTED SELF-SERVICE MODES OF SALE.—

13 ‘‘(1) IN GENERAL.—Notwithstanding any other

14 provision of this section, the following methods of

15 distributing tobacco products are permitted:

16 ‘‘(A) Mail-order sales as provided for in

17 paragraph (2), except that mail-order redemp18 tion of coupons and the distribution of free

19 samples through the mail shall be prohibited.

20 ‘‘(B) Distribution through vending ma21 chines that are located in facilities where the

22 retailer ensures that no individuals under 18

23 years of age are present or permitted to enter

24 at any time.

25 ‘‘(2) MAIL-ORDER SALES.—
75

•S 1648 IS

1 ‘‘(A) IN GENERAL.—A manufacturer, dis2 tributor, or retailer may distribute or cause to

3 be distributed a tobacco product through mail4 order sales only if such sales are subject to a

5 procedure for verifying that no individual pur6 chasing such products is under 18 years of age.

7 ‘‘(B) REVIEW BY SECRETARY.—Not later

8 than 2 years after the date of enactment of this

9 section, the Secretary shall review the verifica10 tion procedures implemented under subpara11 graph (A) to determine whether individuals

12 under 18 years of age are obtaining tobacco

13 products through the mail. If the Secretary de14 termines that a significant number of underage

15 individuals are obtaining such products through

16 the mail, the Secretary may promulgate regula17 tions in accordance with section 902 to prohibit

18 the distribution of tobacco products through the

19 mail.

20 ‘‘SEC. 909. TOBACCO PRODUCTS SCIENTIFIC ADVISORY

21 COMMITTEE.

22 ‘‘(a) ESTABLISHMENT.—Not later than 1 year after

23 the date of enactment of this chapter, the Secretary shall

24 establish an advisory committee, to be known as the ‘To25 bacco Products Scientific Advisory Committee’, to assist
76

•S 1648 IS

1 the Secretary in establishing, amending, or revoking a reg2 ulation promulgated under section 903, 904, 905, or 907.

3 ‘‘(b) MEMBERSHIP.—

4 ‘‘(1) IN GENERAL.—The Secretary shall appoint

5 as members of the Tobacco Products Scientific Advi6 sory Committee—

7 ‘‘(A) individuals with expertise in the med8 icine, science, or technology involving the manu9 facture and use of tobacco products, who are of

10 appropriately diversified professional back11 grounds;

12 ‘‘(B) individuals with expertise in law or

13 ethics;

14 ‘‘(C) a representative of tobacco product

15 manufacturers;

16 ‘‘(D) a representative of the general public

17 selected from public health organizations; and

18 ‘‘(E) a representative of the general public

19 selected from pro-tobacco organizations.

20 ‘‘(2) LIMITATION.—The Secretary may not ap21 point to the Advisory Committee any individual who

22 is in the regular full-time employ of the Federal

23 Government. The Secretary may appoint Federal of24 ficials as ex-officio members.
77

•S 1648 IS

1 ‘‘(3) CHAIRPERSON.—The Secretary shall des2 ignate 1 of the members of advisory committee to

3 serve as chairperson of the Advisory Committee.

4 ‘‘(c) DUTIES.—The Tobacco Products Scientific Ad5 visory Committee shall—

6 ‘‘(1) assist the Secretary in establishing,

7 amending, or revoking regulations under section

8 903, 904, 905, or 907;

9 ‘‘(2) examine and make recommendations con10 cerning the effects of the alteration of the nicotine

11 yield levels in tobacco products;

12 ‘‘(3) examine and make recommendations con13 cerning whether there is a threshold level below

14 which nicotine yields do not produce dependence on

15 the tobacco product involved, and, if so, determine

16 what that level is; and

17 ‘‘(4) review other safety, dependence or health

18 issues relating to tobacco products as requested by

19 the Secretary.

20 ‘‘SEC. 910. REPORTS.

21 ‘‘Not later than 18 months after the date of enact22 ment of this chapter, and biennially thereafter, the Sec23 retary shall prepare and submit to Congress a report con24 taining—
78

•S 1648 IS

1 ‘‘(1) a description of the current sales, advertis2 ing, and marketing practices associated with tobacco

3 products;

4 ‘‘(2) a description of the use patterns of tobacco

5 products, including a report on use by individuals

6 under 18 years of age;

7 ‘‘(3) a description of the effects of health pro8 motion and disease prevention efforts related to the

9 use of tobacco products;

10 ‘‘(4) an evaluation of the health promotion and

11 disease prevention efforts relating to tobacco prod12 ucts and the identification of areas appropriate for

13 further research; and

14 ‘‘(5) such recommendations for legislation and

15 administrative action relating to tobacco products as

16 the Secretary considers appropriate.

17 ‘‘SEC. 911. JUDICIAL REVIEW.

18 ‘‘(a) APPLICATION OF SECTION.—

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

20 after the effective date of any regulation under this

21 chapter establishing, amending, or revoking a health

22 risk reduction standard for a tobacco product, any

23 person adversely affected by such regulation may file

24 a petition with the United States Court of Appeals

25 for the District of Columbia or for the circuit where-
79

•S 1648 IS

1 in such person resides or has its principal place of

2 business for judicial review of such regulation. A

3 copy of the petition shall be transmitted by the clerk

4 of the court to the Secretary or other officer des5 ignated by him for that purpose.

6 ‘‘(2) RECORD OF PROCEEDING.—The Secretary

7 shall file in the court under paragraph (1) the

8 record of the proceedings on which the Secretary

9 based the regulation involved as provided for in sec10 tion 2112 of title 28, United States Code.

11 ‘‘(3) DEFINITION.—For purposes of this sec12 tion, the term ‘record’ means all notices and other

13 matter published in the Federal Register with re14 spect to the regulation reviewed, all information sub15 mitted to the Secretary with respect to such regula16 tion, proceedings of any panel or advisory committee

17 with respect to such regulation, any hearing held

18 with respect to such regulation, and any other infor19 mation identified by the Secretary, in the adminis20 trative proceeding held with respect to such regula21 tion, as being relevant to such regulation.

22 ‘‘(b) ADDITIONAL DATA, VIEWS, AND ARGUMENTS.—

23 If the petitioner applies to the court under this section

24 for leave to adduce additional data, views, or arguments

25 respecting the regulation being reviewed and shows to the
80

•S 1648 IS

1 satisfaction of the court that such additional data, views,

2 or arguments are material and that there were reasonable

3 grounds for the petitioner’s failure to adduce such data,

4 views, or arguments in the proceedings before the Sec5 retary, the court may order the Secretary to provide addi6 tional opportunity for the oral presentation of data, views,

7 or arguments and for written submissions. The Secretary

8 may modify such findings, or make new findings by reason

9 of the additional data, views, or arguments so taken and

10 shall file with the court such modified or new findings,

11 and the recommendations of the Secretary, if any, for the

12 modification or setting aside of the regulation or order

13 being reviewed, with the return of such additional data,

14 views, or arguments.

15 ‘‘(c) STANDARD FOR REVIEW.—Upon the filing of the

16 petition under subsection (a) judicial review of a regula17 tion, the court shall have jurisdiction to review the regula18 tion in accordance with chapter 7 of title 5, United States

19 Code, and to grant appropriate relief, including interim

20 relief, as provided for in such chapter. A regulation pro21 mulgated under this chapter shall not be affirmed if it is

22 found to be arbitrary and capricious.

23 ‘‘(d) FINALITY OF JUDGMENTS.—The judgment of

24 the court affirming or setting aside, in whole or in part,

25 any regulation under this section shall be final, subject
81

•S 1648 IS

1 to review by the Supreme Court of the United States upon

2 certiorari or certification, as provided for in section 1254

3 of title 28, United States Code.

4 ‘‘(e) OTHER REMEDIES.—The remedies provided for

5 in this section shall be in addition to and not in lieu of

6 any other remedies provided for by law.

7 ‘‘(f) STATEMENT OF REASONS.—To facilitate judicial

8 review under this section or under any other provision of

9 law of a regulation issued under this chapter, each such

10 regulation shall contain a statement of the reasons for its

11 issuance and the basis, in the record of the proceedings

12 held in connection with its issuance, for its issuance.

13 ‘‘SEC. 912. AUTHORITY TO ASSESS AND USE FEES.

14 ‘‘(a) IN GENERAL.—The Secretary shall, not later

15 than 60 days after the date of enactment of this chapter,

16 annually assess and collect fees for submissions made

17 under sections 902, 903, and 907 in accordance with this

18 section to be used as the sole source of funding with re19 spect to the regulation and control of tobacco products

20 under chapter 9 this Act.

21 ‘‘(b) TOBACCO PRODUCT FEE.—The Secretary shall

22 set the amount of the fees under subsection (a) for a fiscal

23 year to equal $100,000,000.
82

•S 1648 IS

1 ‘‘(c) PAYMENT SCHEDULE.—The Secretary shall pro2 mulgate regulations to implement procedures for the as3 sessment and collection of fees under this section.

4 ‘‘(d) COLLECTION OF UNPAID FEES.—In any case

5 where the Secretary does not receive payment of a fee as6 sessed under subsection (b) within 30 days after it is due,

7 such fee shall be treated as a claim of the United States

8 Government subject to subchapter II of chapter 37 of title

9 31, United States Code.

10 ‘‘(e) APPORTIONMENT OF FEES.—The Secretary

11 shall, not later than 60 days after the enactment of this

12 chapter, issue regulations apportioning fees under sub13 section (a) among submissions required under sections

14 902, 903, and 907.

15 ‘‘SEC. 913. PRESERVATION OF STATE AND LOCAL AUTHOR16 ITY.

17 ‘‘(a) ADDITIONAL REQUIREMENTS.—

18 ‘‘(1) IN GENERAL.—Except as provided in para19 graph (3), nothing in this Act shall be construed as

20 prohibiting a State or political subdivision thereof

21 from adopting or enforcing a requirement applicable

22 to a tobacco product that is in addition to, or more

23 stringent than, requirements established under this

24 Act.
83

•S 1648 IS

1 ‘‘(2) APPLICATION OF STATE LAW.—In the case

2 of a requirement of a State or political subdivision

3 thereof that is more stringent than a requirement

4 established under this Act, the requirement of the

5 State or political subdivision shall apply.

6 ‘‘(3) EXCEPTION.—This subsection shall not

7 apply to requirements under sections 902, 903, 904,

8 905, 906(a)(1)–(3), 906(b)–(d), and 907.

9 ‘‘(b) RULE OF CONSTRUCTION REGARDING PRODUCT

10 LIABILITY.—No provision of this Act relating to a tobacco

11 product shall be construed to modify or otherwise affect

12 any action or the liability of any person under the product

13 liability law of any State.’’.

14 SEC. 102. TECHNICAL PROVISIONS.

15 (a) APPLICATION OF FEDERAL CIGARETTE LABEL16 ING AND ADVERTISING ACT.—The provisions of the Fed17 eral Cigarette Labeling and Advertising Act (15 U.S.C.

18 1331 et seq.) that apply to cigarettes shall be superseded

19 by the provisions of this title (and the amendments made

20 by this title).

21 (b) REPEAL.—The Comprehensive Smokeless To22 bacco Health Education Act of 1986 (15 U.S.C. 4401 et

23 seq.) is repealed.
84

•S 1648 IS

1 SEC. 103. FEDERAL LICENSING OF MILITARY AND OTHER

2 ENTITIES.

3 (a) IN GENERAL.—The Secretary, in consultation

4 with the Secretary of Defense, Secretary of State, and

5 other appropriate Federal officials, shall establish and im6 plement a Federal tobacco licensing program to be applied

7 to entities that sell or distribute tobacco products—

8 (1) on any military installation (as defined in

9 section 2801(c)(2) of title X, United States Code);

10 (2) in any United States embassy;

11 (3) in any facility owned and operated by the

12 Federal Government either in the United States or

13 in a foreign country;

14 (4) in any duty-free shop located within the

15 United States; or

16 (5) through any other Federal entity or on any

17 other Federal property as determined appropriate by

18 the Secretary.

19 (b) REQUIREMENTS OF PROGRAM.—The program es20 tablished under subsection (a) shall apply requirements

21 (including those for penalties, suspensions, and revoca22 tions) similar to those required to be implemented by

23 States under this title (and the amendments made by this

24 title).

25 (c) INDIAN TRIBES AND TRIBAL LANDS.—For pur26 poses of applying and enforcing the provisions of this title
85

•S 1648 IS

1 (and the amendments made by this title) to entities that

2 sell or otherwise distribute tobacco products on Indian res3 ervations (as defined in section 403(9) of the Indian Child

4 Protection and Family Violence Prevention Act (25 U.S.C.

5 3202(9))), an Indian tribe or tribal organization shall be

6 treated as a State.

7 TITLE II—NATIONAL EFFORTS

8 TO REDUCE YOUTH SMOKING

9 SEC. 201. SHORT TITLE.

10 This title may be cited as the ‘‘Tobacco Use by Mi11 nors Prevention Act’’.

12 SEC. 202. AMENDMENT TO PUBLIC HEALTH SERVICE ACT

13 The Public Health Service Act (42 U.S.C. 201 et

14 seq.) is amended by adding at the end the following:

15 ‘‘TITLE XXVIII—NATIONAL EF16 FORTS TO REDUCE YOUTH

17 SMOKING

18 ‘‘SEC. 2801. DEFINITIONS.

19 ‘‘For purposes of this title, the definitions contained

20 in section 900 of the Food, Drug and Cosmetic Act shall

21 apply.
86

•S 1648 IS

1 ‘‘Subtitle A—Required Reduction

2 in Underage Use of Tobacco

3 Products

4 ‘‘SEC. 2811. PURPOSE.

5 ‘‘It is the purpose of this title to encourage the

6 achievement of dramatic and immediate reductions in the

7 number of underage consumers of tobacco products

8 through the imposition of substantial financial surcharges

9 on participating manufacturers if certain underage to10 bacco-use reduction targets are not met.

11 ‘‘SEC. 2812. DETERMINATION OF UNDERAGE USE BASE PER12 CENTAGES.

13 ‘‘(a) CIGARETTES.—For purposes of this section, the

14 underage use base percentage for cigarettes shall be a per15 centage determined by the Secretary, weighted by the rel16 ative population of the age groups involved as determined

17 using data compiled in 1995 by the Bureau of the Census,

18 based on—

19 ‘‘(1) the average of the percentages of 12th

20 graders (individuals who are 16 or 17 years of age)

21 who used cigarette products on a daily basis for each

22 of the calendar years 1986 through 1996;

23 ‘‘(2) the average of the percentages of 10th

24 graders (individuals who are 14 or 15 years of age)
87

•S 1648 IS

1 who used cigarette products on a daily basis for each

2 of the calendar years 1991 through 1996; and

3 ‘‘(3) the average of the percentages of 8th grad4 ers (individuals who are 13 years of age) who used

5 cigarette products on a daily basis for each of the

6 calendar years 1991 through 1996.

7 ‘‘(b) SMOKELESS TOBACCO.—For purposes of this

8 section, the underage use base percentage for smokeless

9 tobacco products shall be a percentage determined by the

10 Secretary, weighted by the relative population of the age

11 groups involved as determined using data compiled in

12 1995 by the Bureau of the Census, based on—

13 ‘‘(1) the average of the percentages of 12th

14 graders (individuals who are 16 or 17 years of age)

15 who used smokeless tobacco products on a daily

16 basis in 1996;

17 ‘‘(2) the average of the percentages of 10th

18 graders (individuals who are 14 or 15 years of age)

19 who used smokeless tobacco products on a daily

20 basis in 1996; and

21 ‘‘(3) the average of the percentages of 8th grad22 ers (individuals who are 13 years of age) who used

23 smokeless tobacco products on a daily basis in 1996.

24 ‘‘(c) USE OF CERTAIN DATA OR METHODOLOGY.—

25 For purposes of determining the percentages under para-
88

•S 1648 IS

1 graphs (1) through (3) of subsections (a) and (b), the Sec2 retary shall use the data contained in the National High

3 School Drug Use Survey entitled Monitoring the Future

4 by the University of Michigan or such other comparable

5 index, as determined appropriate by the Secretary after

6 notice and an opportunity for a hearing, that utilizes

7 methodology identical to that used by the University of

8 Michigan in such survey.

9 ‘‘SEC. 2813. ANNUAL DAILY INCIDENCE OF UNDERAGE USE

10 OF TOBACCO PRODUCTS.

11 ‘‘(a) ANNUAL DETERMINATION.—Not later than the

12 expiration of the 5-year period beginning on the date of

13 enactment of this Act, and annually thereafter, the Sec14 retary shall determine the average annual incidence of the

15 daily use of tobacco products by individuals who are under

16 18 years of age.

17 ‘‘(b) CIGARETTES.—With respect to cigarette prod18 ucts, a determination under subsection (a) for a year shall

19 be based on the percentage, as weighted by the relative

20 population of the age groups involved as determined using

21 data compiled in 1995 by the Bureau of the Census, of—

22 ‘‘(1) 12th graders (individuals who are 16 or 17

23 years of age) who used cigarette products on a daily

24 basis during the year involved;
89

•S 1648 IS

1 ‘‘(2) 10th graders (individuals who are 14 or 15

2 years of age) who used cigarette products on a daily

3 basis during the year involved; and

4 ‘‘(3) 8th graders (individuals who are 13 years

5 of age) who used cigarette products on a daily basis

6 during the year involved.

7 ‘‘(c) SMOKELESS TOBACCO.—With respect to smoke8 less tobacco products, a determination under subsection

9 (a) for a year shall be based on the percentage, as weight10 ed by the relative population of the age groups involved

11 as determined using data compiled in 1995 by the Bureau

12 of the Census, of—

13 ‘‘(1) 12th graders (individuals who are 16 or 17

14 years of age) who used smokeless tobacco products

15 on a daily basis during the year involved;

16 ‘‘(2) 10th graders (individuals who are 14 or 15

17 years of age) who used smokeless tobacco products

18 on a daily basis during the year involved; and

19 ‘‘(3) 8th graders (individuals who are 13 years

20 of age) who used cigarette smokeless tobacco on a

21 daily basis during the year involved.

22 ‘‘(d) USE OF CERTAIN DATA OR METHODOLOGY.—

23 ‘‘(1) IN GENERAL.—For purposes of determin24 ing the percentages under paragraphs (1) through

25 (3) of subsections (b) and (c), the Secretary shall
90

•S 1648 IS

1 use the data contained in the National High School

2 Drug Use Survey entitled Monitoring the Future by

3 the University of Michigan (if such survey is still

4 being undertaken) or such other comparable index,

5 as determined appropriate by the Secretary after no6 tice and an opportunity for a hearing, that utilizes

7 methodology identical to that used by the University

8 of Michigan in such survey.

9 ‘‘(2) ALTERATION OF METHODOLOGY.—If the

10 Secretary determines that the methodology used by

11 the University of Michigan in the survey referred to

12 in paragraph (1) has been altered in a material

13 manner from the methodology used during the pe14 riod from 1986 to 1996 (including by altering States

15 or regions on which the survey is based), the Sec16 retary, after notice and an opportunity for a hear17 ing, shall use percentages based on an index devel18 oped by the Secretary that utilizes methodology

19 identical to that used by the University of Michigan

20 in such survey.

21 ‘‘SEC. 2814. REQUIRED REDUCTION IN UNDERAGE TO22 BACCO USE.

23 ‘‘(a) IN GENERAL.—For purposes of assessing sur24 charges under section 405, the Secretary shall determine

25 whether the required percentage reduction in the underage
91

•S 1648 IS

1 use of tobacco products for a year (based on the national

2 goals described in section 4 of the PAST Act) has been

3 achieved for the year involved. Such determination shall

4 be based on—

5 ‘‘(1) with respect to cigarette products, the av6 erage annual incidence of the daily use of tobacco

7 products by individuals who are under 18 years of

8 age for the year involved (as determined under sec9 tion 403(b)) as compared to the underage use base

10 percentage for cigarette products (as determined

11 under section 402(a)); and

12 ‘‘(2) with respect to smokeless tobacco prod13 ucts, the average annual incidence of the daily use

14 of smokeless tobacco products by individuals who are

15 under 18 years of age for the year involved (as de16 termined under section 403(c)) as compared to the

17 underage use base percentage for smokeless tobacco

18 products (as determined under section 402(b)).

19 ‘‘(b) PERCENTAGE REDUCTION IN UNDERAGE USE

20 OF TOBACCO PRODUCTS.—For purposes of subsection (a),

21 the required percentage reduction in the underage use of

22 tobacco products with respect to each tobacco product

23 shall be determined based on the national goals for the

24 reduction in underage tobacco use under section 4.
92

•S 1648 IS

1 ‘‘SEC. 2815. APPLICATION OF SURCHARGES.

2 ‘‘(a) IN GENERAL.—If the Secretary determines that

3 the percentage reduction in the underage use of tobacco

4 products for a year has not been achieved as required

5 under section 2814, the Secretary shall impose a sur6 charge on the participating manufacturers of the tobacco

7 products involved.

8 ‘‘(b) AMOUNT OF SURCHARGE.—

9 ‘‘(1) IN GENERAL.—

10 ‘‘(A) CIGARETTES.—With respect to ciga11 rettes, the amount of any surcharge to be im12 posed under this section for a calendar year

13 shall be equal to the product of—

14 ‘‘(i) $80,000,000, and the number of

15 applicable surcharge percentage points as

16 determined under subsection (c) up to 5

17 percentage points;

18 ‘‘(ii) $400,000,000, and the number

19 of applicable surcharge percentage points

20 as determined under subsection (c), if such

21 percentage points are greater than 5 but

22 less than 11 percentage points; and

23 ‘‘(iii) $500,000,000, and the number

24 of applicable surcharge percentage points

25 as determined under subsection (c), if such
93

•S 1648 IS

1 percentage points are 11 or more percent2 age points; and

3 ‘‘(B) SMOKELESS TOBACCO.—With respect

4 to smokeless tobacco, the amount of any sur5 charge to be imposed under this section for a

6 calendar year shall be equal to the product of—

7 ‘‘(i) $15,000,000, and the number of

8 applicable surcharge percentage points as

9 determined under subsection (c) up to 5

10 percentage points;

11 ‘‘(ii) $30,000,000, and the number of

12 applicable surcharge percentage points as

13 determined under subsection (c), if such

14 percentage points are greater than 5 but

15 less than 11 percentage points; and

16 ‘‘(iii) $45,000,000, and the number of

17 applicable surcharge percentage points as

18 determined under subsection (c), if such

19 percentage points are 11 or more percent20 age points.

21 ‘‘(2) ADJUSTMENTS.—The amount applicable

22 under paragraph (1) shall be annually adjusted by

23 the Secretary based on with respect to subparagraph

24 (A) of such paragraph—
94

•S 1648 IS

1 ‘‘(A) the proportional percentage increase

2 or decrease, as compared to calendar year

3 1995, in the population of individuals residing

4 in the United States who are at least 13 years

5 of age but less than 18 years of age;

6 ‘‘(B) the proportional percentage increase

7 or decrease, as compared to calendar year

8 1996, in the average profit per unit (measured

9 in cents and weighted by annual sales) earned

10 by participating manufacturers for the tobacco

11 product involved (as determined by the Sec12 retary through a contract with a nationally rec13 ognized accounting firm having no connection

14 to such manufacturers).

15 ‘‘(c) DETERMINATION OF APPLICABLE SURCHARGE

16 PERCENTAGE POINTS.—

17 ‘‘(1) IN GENERAL.—With respect to a calendar

18 year, the applicable surcharge percentage points

19 shall be equal to the percentage point difference be20 tween—

21 ‘‘(A) the required incidence goal in the un22 derage use of the tobacco product involved for

23 the year (based on the national goals described

24 in section 4 of the PAST Act); and
95

•S 1648 IS

1 ‘‘(B) the number of percentage points by

2 which the average annual incidence of the daily

3 use of the tobacco products involved by individ4 uals who are under 18 years of age for the year

5 (as determined under section 2813) is less than

6 the underage use base percentage for such

7 products (as determined under section 2812).

8 ‘‘(2) ADJUSTMENT.—If for any calendar year

9 the Secretary determines that the average annual in10 cidence of the daily use of the tobacco products in11 volved by individuals who are under 18 years of age

12 (as determined under section 2813) is greater than

13 the underage use base percentage for such products

14 (as determined under section 2812), the applicable

15 surcharge percentage point shall be equal to—

16 ‘‘(A) the percentage point amount deter17 mined under paragraph (1)(A); and

18 ‘‘(B) the number of percentage points by

19 which the average annual incidence of the daily

20 use of the tobacco products involved by individ21 uals who are under 18 years of age (as deter22 mined under section 2813) is greater than the

23 underage use base percentage for such products

24 (as determined under section 2812).
96

•S 1648 IS

1 ‘‘(3) TYPE OF PRODUCT.—Separate determina2 tions shall be made under this section for cigarette

3 products and smokeless tobacco products.

4 ‘‘(d) JOINT AND SEVERAL OBLIGATION.—Any sur5 charge imposed under this section with respect to a to6 bacco product (cigarette products or smokeless tobacco

7 products) shall be the joint and several obligation of all

8 participating manufacturers of such product as allocated

9 by the market share of each such manufacturer with re10 spect to such product. The market share of each manufac11 turer for each such product shall be based on the market

12 share of such product for the year preceding the year for

13 which the determination is being made.

14 ‘‘(e) ASSESSMENT.—Not later than May 1 of each

15 year in which a surcharge will be imposed under this sec16 tion, the Secretary shall assess, pursuant to subsection

17 (d), to each participating manufacturer the amount for

18 which such manufacturer is obligated. Not later than July

19 1 of any year in which a manufacturer receives an assess20 ment under this section, the manufacturer shall pay such

21 assessment in full or be subject to such interest on such

22 amount as the Secretary may by regulation prescribe.

23 ‘‘(f) USE OF AMOUNTS.—Amounts received under

24 this section shall be used to further the purposes of this

25 title.
97

•S 1648 IS

1 ‘‘(g) PROHIBITION.—No stay or other injunctive re2 lief may be granted by the Secretary or any court that

3 has the effect of enjoining the imposition and collection

4 of the surcharges to be applied under this section.

5 ‘‘SEC. 2816. ABATEMENT PROCEDURES.

6 ‘‘(a) PETITIONS.—Upon payment by a participating

7 manufacturer of the amount assessed to the manufacturer

8 under section 2815(f), the manufacturer may submit a pe9 tition to the Secretary for an abatement of the assessment.

10 A notice of such abatement petition shall be submitted to

11 the attorney general of each State.

12 ‘‘(b) HEARING.—The Secretary shall provide for the

13 conduct of a hearing on an abatement petition received

14 under subsection (a) pursuant to the procedures described

15 in sections 554, 556, and 557 of title 5, United States

16 Code. The attorney general of any State shall be permitted

17 to be heard at any hearing conducted under this sub18 section.

19 ‘‘(c) BURDEN.—The burden at any hearing under

20 subsection (b) shall be on the participating manufacturer

21 to prove, by a preponderance of the evidence, that the

22 manufacturer should be granted the abatement.

23 ‘‘(d) BASIS OF DECISION.—Any decision regarding a

24 petition for an abatement under this section shall be based

25 on a determination as to whether—
98

•S 1648 IS

1 ‘‘(1) the participating manufacturer has acted

2 in good faith and in full compliance with this title

3 and any regulations or State or local laws promul4 gated in furtherance of this title;

5 ‘‘(2) the participating manufacturer has pur6 sued all reasonably available measures to attain the

7 reductions;

8 ‘‘(3) there is any evidence of any direct or indi9 rect action by the participating manufacturer to un10 dermine the achievement of the reductions required

11 under section 2814 or to undermine any other provi12 sion of this title; and

13 ‘‘(4) the participating manufacturer has taken

14 (or failed to take) any other action as determined

15 appropriate by the Secretary.

16 ‘‘(e) AMOUNT.—Upon a determination granting an

17 abatement under this section, the Secretary shall order the

18 abatement of not more than 75 percent of the amount paid

19 by the participating manufacturer (as determined by the

20 Secretary), together with interest that may have accrued

21 on such amount during the period between the date on

22 which payment by the manufacturer was made and the

23 date on which the abatement order was granted. Such in24 terest shall be equal to that provided for the average 52-

25 week Treasury Bill during the period involved.
99

•S 1648 IS

1 ‘‘(f) AGGRIEVED PARTIES.—Any participating manu2 facturer or attorney general of any State that is aggrieved

3 by an abatement that is granted under this section may

4 seek judicial review of the abatement decision within 30

5 days of the date of such decision in the Court of Appeals

6 for the District of Columbia Circuit. Review in such cases

7 shall be subject to the procedures described in sections

8 701 through 706 of title 5, United States Code.

9 ‘‘(g) PROHIBITION.—A participating manufacturer

10 may not file a petition under subsection (a) until such time

11 as the manufacturer has fully paid the Secretary the

12 amount assessed to the manufacturer under section

13 405(f).

14 ‘‘SEC. 2817. INCENTIVE FOR EXCEEDING REDUCTION

15 GOALS.

16 ‘‘If the Secretary determines that the percentage re17 duction in the underage use of tobacco products for a year

18 exceeds 60 percent for cigarettes and 45 percent for

19 smokeless tobacco products for a year as required under

20 section 2814, the Secretary shall adjust the amount of the

21 fee that a participating manufacturer shall be required to

22 pay for such year into the Tobacco Settlement Trust

23 Fund.
100

•S 1648 IS

1 ‘‘Subtitle B—Restrictions on Access

2 to Tobacco Products

3 ‘‘SEC. 2821. MINORS’ ACCESS TO TOBACCO PRODUCTS.

4 ‘‘(a) IN GENERAL.—To be eligible to receive funds

5 under this title a State shall have in effect a law that—

6 ‘‘(1) provides that no retailer may sell or other7 wise distribute a tobacco product within the State to

8 any individual who is under 18 years of age; and

9 ‘‘(2) ensures compliance with the requirement

10 of paragraph (1) through the provisions of this title

11 and through any other measures determined appro12 priate by the State.

13 ‘‘(b) COMPLIANCE.—A State shall be considered to

14 be in compliance with the requirements of subsection (a)

15 if the State can demonstrate to the Secretary that fewer

16 than 10 percent of all individuals under 18 years of age

17 who attempt to purchase tobacco products in the State

18 are successful in such purchase.

19 ‘‘SEC. 2822. STATE LAWS REGARDING SALE OF TOBACCO

20 PRODUCTS TO INDIVIDUALS UNDER THE AGE

21 OF 18.

22 ‘‘(a) ELIGIBILITY.—

23 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

24 for fiscal year 2000 and each subsequent fiscal year

25 a State shall not be eligible for payments under sec-
101

•S 1648 IS

1 tion 2824 if that State does not have in effect a

2 State law with the provisions contained in the model

3 State law described in section 2823.

4 ‘‘(2) DELAYED APPLICABILITY FOR CERTAIN

5 STATES.—In the case of a State whose legislature

6 does not convene a regular session in fiscal year

7 2000, the requirement described in paragraph (1)

8 shall apply only for fiscal year 2001 and subsequent

9 fiscal years.

10 ‘‘(b) ENFORCEMENT.—For the first applicable fiscal

11 year and for each subsequent fiscal year, a State shall—

12 ‘‘(1) certify to the Secretary that such State

13 has designated a State agency with law enforcement

14 or regulatory authority to enforce the State law de15 scribed in subsection (a)(1);

16 ‘‘(2) certify to the Secretary that the enforce17 ment of such law is treated as a priority by the

18 State and the agency designated under paragraph

19 (1);

20 ‘‘(3) conduct random, unannounced inspections

21 in a manner that will—

22 ‘‘(A) provide statistically significant infor23 mation concerning the State’s level of compli24 ance with the requirements of section 2821; and
102

•S 1648 IS

1 ‘‘(B) ensure compliance with the State law

2 enacted in accordance with subsection (a)(1);

3 ‘‘(4) annually submit to the Secretary a report

4 that—

5 ‘‘(A) describes the activities carried out by

6 the State to enforce such law during the fiscal

7 year preceding the fiscal year for which the

8 State is seeking the grant;

9 ‘‘(B) describes the steps taken by the State

10 to ensure that enforcement of such law was

11 treated as a priority by State and local law en12 forcement or regulatory authorities;

13 ‘‘(C) describes the level of compliance

14 among tobacco product licensees with the provi15 sions of this subtitle;

16 ‘‘(D) describes the extent of success the

17 State has achieved in reducing the availability

18 of tobacco products to individuals under the age

19 of 18, including the results of the inspections

20 conducted under paragraph (3);

21 ‘‘(E) describes the strategies to be utilized

22 by the State for enforcing such law during the

23 fiscal year for which the grant is sought;

24 ‘‘(F) describes, for the preceding fiscal

25 year, the percentage of the attempts by individ-
103

•S 1648 IS

1 uals under 18 years of age to purchase tobacco

2 products in the State that were unsuccessful;

3 and

4 ‘‘(G) includes any other information re5 quired by the Secretary.

6 ‘‘(c) FUNDING.—The law specified in subsection

7 (a)(1) may be administered and enforced by a State

8 using—

9 ‘‘(1) funds received by the State under section

10 203;

11 ‘‘(2) any fees collected for licenses issued pursu12 ant to the law described in subsection (a)(1);

13 ‘‘(3) any fines or penalties assessed for viola14 tions of the law specified in subsection (a)(1); or

15 ‘‘(4) any other funding source that the legisla16 ture of the State may prescribe by statute.

17 ‘‘(d) NONCOMPLIANCE OF STATE.—

18 ‘‘(1) IN GENERAL.—The Secretary, acting

19 through the Director of the Office on Smoking and

20 Health of the Centers for Disease Control and Pre21 vention, shall make a determination whether the

22 State has maintained compliance with the provisions

23 of subsections (a) and (b) and section 2821. If, after

24 notice to the State and an opportunity for a hearing,

25 the Secretary determines that the State is not in
104

•S 1648 IS

1 compliance with such provisions, the Secretary shall

2 reduce the amount of the State payment under sec3 tion 2824 for the fiscal year involved by an amount

4 equal to—

5 ‘‘(A) in the case of the first applicable fis6 cal year, 10 percent of the amount determined

7 under section 2824;

8 ‘‘(B) in the case of the first fiscal year fol9 lowing such applicable fiscal year, 20 percent of

10 the amount determined under such sections for

11 the State for the fiscal year; and

12 ‘‘(C) in the case of the second such fiscal

13 year, 30 percent of the amount determined

14 under such sections for the State for the fiscal

15 year.

16 ‘‘(2) ELIGIBILITY FOR PAYMENTS.—If, with re17 spect to the third fiscal year following the applicable

18 year described in paragraph (1)(A), or any subse19 quent fiscal year, the Secretary determines under

20 paragraph (1) that the State is not in compliance

21 with the provisions of subsections (a) and (b) and

22 section 2821, the State shall not be eligible for pay23 ments under section 2824.

24 ‘‘(e) ACTION BY SECRETARY.—If the Secretary deter25 mines that a State is not eligible for payments under sec-
105

•S 1648 IS

1 tion 2824, the Secretary, in consultation with the Office

2 on Smoking and Health, shall take such actions as may

3 be necessary to ensure compliance with this subtitle in the

4 State.

5 ‘‘(f) DEFINITION.—For purposes of this section, the

6 term ‘first applicable fiscal year’ means—

7 ‘‘(1) fiscal year 2001, in the case of any State

8 described in subsection (a)(2); and

9 ‘‘(2) fiscal year 2000, in the case of any other

10 State.

11 ‘‘SEC. 2823. MODEL STATE LAW.

12 ‘‘The model State law described in this section with

13 respect to a State is the following:

14 ‘‘ ‘SECTION 1. ESTABLISHMENT OF PROGRAM.

15 ‘‘ ‘There is established within the State a program

16 under which a person is required to obtain a State or local

17 license (referred to in this Act as the ‘‘licensee’’) to sell

18 or otherwise distribute tobacco products directly to con19 sumers.

20 ‘‘ ‘SEC. 2. PROHIBITION ON SALE OR DISTRIBUTION OF TO21 BACCO PRODUCTS TO MINORS.

22 ‘‘ ‘No person (including a licensee) may sell or other23 wise distribute a tobacco product to an individual who is

24 under 18 years of age.
106

•S 1648 IS

1 ‘‘ ‘SEC. 3. REQUIREMENTS FOR DISTRIBUTION.

2 ‘‘ ‘(a) IN GENERAL.—No person shall sell or other3 wise distribute tobacco products directly to consumers un4 less such person has in effect a tobacco license issued or

5 renewed in accordance with the laws of the State in which

6 the products are to be sold or distributed.

7 ‘‘ ‘(b) PHOTO IDENTIFICATION.—

8 ‘‘ ‘(1) REQUIREMENT.—Except as provided in

9 paragraph (2), each licensee shall verify, by means

10 of a driver’s license or other form of identification

11 issued by a government authority containing a pho12 tograph and the date of birth of the bearer, that no

13 individual purchasing a tobacco product is under 18

14 years of age.

15 ‘‘ ‘(2) EXCEPTION.—No verification under para16 graph (1) is required for any individual who is at

17 least 27 years of age.

18 ‘‘ ‘(c) LOCATION OF PRODUCTS.—A licensee shall en19 sure that all tobacco products are located in areas where

20 customers do not have access to the products.

21 ‘‘ ‘(d) FACE-TO-FACE TRANSACTIONS.—A licensee

22 may sell tobacco products only in a direct, face-to-face ex23 change without the assistance of any electronic or mechan24 ical device.

25 ‘‘ ‘(e) OUT-OF-PACKAGE DISTRIBUTION.—No licensee

26 may break or otherwise open a tobacco product to sell or
107

•S 1648 IS

1 distribute to individuals portions of such product (includ2 ing individual cigarettes or a number of cigarettes that

3 is smaller than the quantity in the minimum package size,

4 or any quantity of cigarette tobacco or smokeless tobacco

5 that is smaller than the smallest package distributed by

6 the licensee for individual consumer use).

7 ‘‘ ‘(f) LICENSEE COMPLIANCE WITH RESPECT TO

8 SELF-SERVICE.—Each licensee shall ensure that all to9 bacco-related self-service displays, advertising, labeling,

10 and other items that are located in the establishment of

11 the licensee and that do not comply with the requirements

12 of this section are removed or are brought into compliance

13 with the requirements of this section.

14 ‘‘ ‘(g) MINIMUM CIGARETTE PACKAGE SIZE.—Except

15 as otherwise provided in this section, no manufacturer,

16 distributor, or licensee may sell or cause to be sold, or

17 distribute or cause to be distributed, any cigarette package

18 that contains fewer than 20 cigarettes.

19 ‘‘ ‘(h) PROHIBITION ON SAMPLING.—No manufac20 turer, distributor, or licensee may distribute or cause to

21 be distributed any free samples of any tobacco product.

22 ‘‘ ‘SEC. 4. LICENSING REQUIREMENTS.

23 ‘‘ ‘(a) LICENSURE AND NOTICE.—

24 ‘‘ ‘(1) LICENSURE.—Every person engaged in

25 the sale or distribution of tobacco products directly
108

•S 1648 IS

1 to consumers shall obtain a license that is issued by

2 the State. A separate license shall be required for

3 each place of business where tobacco products are

4 distributed or sold at retail.

5 ‘‘ ‘(2) NOTICE.—The State shall provide notice

6 to every person who is engaged in the distribution

7 at retail of tobacco products of the licensing require8 ments of paragraph (1) and of the date by which

9 such person shall be required to obtain such a li10 cense in order to distribute such products.

11 ‘‘ ‘(b) FEE.—Each person that desires to obtain a li12 cense under subsection (a) shall be assessed an annual li13 censing fee in an amount determined appropriate by the

14 State. Such fees shall be used to administer the provisions

15 of this Act with respect to the issuing and renewing of

16 licenses.

17 ‘‘ ‘(c) APPLICATION.—

18 ‘‘ ‘(1) IN GENERAL.—To be eligible to receive a

19 license (or the renewal of a license) under this sec20 tion, a person shall prepare and submit to the State

21 an application, in such form as may be required by

22 the State, that shall contain—

23 ‘‘ ‘(A) the name under which the applicant

24 transacts or intends to transact business;
109

•S 1648 IS

1 ‘‘ ‘(B) the location of the place of business

2 for which the license is to be issued;

3 ‘‘ ‘(C) the street address to which all no4 tices relevant to the license are to be sent; and

5 ‘‘ ‘(D) any other information determined

6 appropriate by the State.

7 ‘‘ ‘(2) ACTION BY STATE.—

8 ‘‘ ‘(A) IN GENERAL.—Not later than 30

9 days after the date on which a completed appli10 cation (and licensing fee) under paragraph (1)

11 is received, the State shall approve or deny the

12 application.

13 ‘‘ ‘(B) FINDING BY STATE.—The State

14 shall deny an application under paragraph (1)

15 if the State determines that the applicant has

16 failed to comply with the requirements of this

17 Act.

18 ‘‘ ‘(3) SCOPE AND RENEWAL.—A license under

19 this section shall be valid for a period of time deter20 mined appropriate by the State and shall be renewed

21 upon proper application except as otherwise provided

22 in this section.
110

•S 1648 IS

1 ‘‘ ‘SEC. 5. PENALTIES FOR LICENSEES AND EMPLOYEES FOR

2 SALE OR DISTRIBUTION IN VIOLATION OF

3 LAW.

4 ‘‘ ‘(a) CRIMINAL PENALTIES APPLICABLE TO UNLI5 CENSED SELLERS.—The owner of any retail establish6 ment that sells or otherwise distributes tobacco products

7 to a consumer in the State without a tobacco license shall

8 be subject to a fine of not less than $500 per outlet, or

9 imprisonment of not less than 30 days, or both.

10 ‘‘ ‘(b) CIVIL PENALTIES APPLICABLE TO LICENSED

11 PERSONS.—

12 ‘‘ ‘(1) IN GENERAL.—The State may impose

13 civil penalties on any person that has sold or other14 wise distributed tobacco products in violation of the

15 tobacco license of the person or in violation of this

16 Act.

17 ‘‘ ‘(2) LIMITATIONS.—The civil penalties im18 posed under paragraph (1), subject to the provisions

19 of subparagraph (d), shall not be less than the fol20 lowing:

21 ‘‘ ‘(A) For the first offense within any 2-

22 year period, $100.

23 ‘‘ ‘(B) For a second offense within any 2-

24 year period, $250.
111

•S 1648 IS

1 ‘‘ ‘(C) For a third offense within any 2-

2 year period, $250, and a 3-day suspension of

3 the tobacco license.

4 ‘‘ ‘(D) For a fourth offense within any 2-

5 year period, $500 and a 7-day suspension of the

6 tobacco license.

7 ‘‘ ‘(E) For a fifth offense within any 2-year

8 period, $500, and a 30-day suspension of the

9 tobacco license.

10 ‘‘ ‘(F) For a sixth offense within any 2-

11 year period, $10,000, or a 1-year suspension of

12 the tobacco license, or both.

13 ‘‘ ‘(G) For a seventh and any subsequent

14 offense within any 2-year period, $10,000, or a

15 3-year revocation of the tobacco license.

16 ‘‘ ‘(H) For a tenth offense within any 2-

17 year period, the mandatory revocation of the to18 bacco license with no possibility of reinstate19 ment for a period of 5 years.

20 ‘‘ ‘(3) DEFENSES.—It shall be a consideration

21 to a charge brought under paragraph (1) that the

22 defendant—

23 ‘‘ ‘(A) relied upon proof of age that ap24 peared on its face to be valid; and
112

•S 1648 IS

1 ‘‘ ‘(B) had complied with the requirements

2 of section 9.

3 ‘‘ ‘(4) OTHER VIOLATIONS.—No civil penalties

4 shall be imposed under this subsection upon a li5 censee with respect to a violation, by an employee of

6 the licensee, that occurred at a place of business of

7 the employer subsequent to the occurrence of a prior

8 violation by that same employee unless the licensee

9 has received notice of such prior violation in writing,

10 served personally or by registered mail at the ad11 dress to which all notices relevant to the license are

12 to be sent.

13 ‘‘ ‘(c) CIVIL PENALTIES APPLICABLE TO EMPLOYEES

14 OF LICENSED PERSONS.—

15 ‘‘ ‘(1) IN GENERAL.—The State may impose

16 civil penalties on any employee of a person with a

17 tobacco license who has sold or otherwise distributed

18 tobacco products in violation of this Act.

19 ‘‘ ‘(2) LIMITATIONS.—The civil penalties im20 posed under paragraph (1) shall not be less than the

21 following:

22 ‘‘ ‘(A) For the first offense within any 2-

23 year period, $25.

24 ‘‘ ‘(B) For a second offense within any 2-

25 year period, $75.
113

•S 1648 IS

1 ‘‘ ‘(C) For a third and any subsequent of2 fense within any 2-year period, $150.

3 ‘‘ ‘(3) DEFENSES.—It shall be a defense to a

4 charge brought under paragraph (1) that the de5 pendent relied upon proof of age that appeared on

6 its face to be valid.

7 ‘‘ ‘(d) SUSPENSION OR REVOCATION OF LICENSE.—

8 ‘‘ ‘(1) NOTICE.—Upon a finding that a violation

9 of section 3(b)(1) has occurred for which the State

10 may suspend or revoke the tobacco license involved

11 the State shall, prior to any such suspension or rev12 ocation, notify the licensee in writing, personally or

13 by registered mail, at the address to which all no14 tices are to be sent that the State is considering

15 such suspension or revocation.

16 ‘‘ ‘(2) OPPORTUNITY TO BE HEARD.—Within 30

17 days of the date on which a licensee receives a notice

18 under paragraph (1), the State shall give the li19 censee an opportunity to show why, based upon the

20 licensee’s efforts to assure compliance with such sec21 tion, the suspension or revocation of the license

22 would be unwarranted and unjust. The State shall

23 take into consideration any information provided by

24 the licensee prior to suspending or revoking such li25 cense.
114

•S 1648 IS

1 ‘‘ ‘(3) WAIVER.—If a licensee demonstrates that

2 it has made appropriate good faith efforts to assure

3 compliance with section 3(b)(1), the State may waive

4 the penalty of suspension or revocation.

5 ‘‘ ‘SEC. 6. PURCHASE, RECEIPT, OR POSSESSION BY MINORS

6 PROHIBITED.

7 ‘‘ ‘(a) IN GENERAL.—An individual under 18 years

8 of age shall not purchase or attempt to purchase, receive

9 or attempt to receive, possess, smoke, or otherwise use or

10 consume a tobacco product in a public place.

11 ‘‘ ‘(b) PENALTIES TO MINORS.—A minor found to be

12 in violation of subsection (a) shall incur a written warning

13 and may incur—

14 ‘‘ ‘(1) a civil money penalty of not less than $25

15 and not more that $150 for each violation;

16 ‘‘ ‘(2) the suspension of his or her motor vehicle

17 operator’s license; and

18 ‘‘ ‘(3) any other civil penalty determined appro19 priate by the State.

20 ‘‘ ‘(c) NOTICE.—A law enforcement agency, upon de21 termining that an individual under 18 years of age alleg22 edly violated subsection (a) shall notify the individual’s

23 parent or parents, custodian, or guardian as to the nature

24 of the violation if the name and address of a parent,

25 guardian, or custodian is reasonably ascertainable by the
115

•S 1648 IS

1 law enforcement agency. The notice required by this sub2 section shall be made not later than 48 hours after the

3 individual who allegedly violated subsection (a) is cited by

4 such agency for the violation. The notice may be made

5 by any means reasonably calculated to give prompt actual

6 notice, including notice in person, by telephone, or by first7 class mail.

8 ‘‘ ‘(d) EMPLOYMENT.—Subsection (a) does not pro9 hibit an individual under the age of 18 from possessing

10 a tobacco product during regular working hours and in

11 the course of such individual’s employment if the tobacco

12 product is not possessed for such individual’s consump13 tion.

14 ‘‘ ‘SEC. 7. ENFORCEMENT.

15 ‘‘ ‘(a) RANDOM UNANNOUNCED INSPECTIONS.—The

16 State shall establish procedures to ensure compliance with

17 this Act. Such procedures shall consist of random, unan18 nounced inspections of establishments that are licensed to

19 sell tobacco in a fashion that is designed to achieve data

20 that is of statistical significance, and shall engage an indi21 vidual under 18 years of age to test compliance with this

22 Act.

23 ‘‘ ‘(b) ENFORCEMENT AUTHORITY.—The State shall

24 designate an agency within the State with law enforcement

25 or regulatory authority to enforce this Act.
116

•S 1648 IS

1 ‘‘ ‘(c) USE OF PENALTIES AND FEES.—Penalties and

2 fees collected under this Act shall be used to defray the

3 costs of the State in administering and enforcing this Act.

4 ‘‘ ‘SEC. 8. SIGNAGE.

5 ‘‘ ‘It shall be unlawful for any licensee who sells to6 bacco products to fail to post conspicuously a sign commu7 nicating that—

8 ‘‘ ‘(1) the sale of tobacco products to individuals

9 under the age of 18 is prohibited by law,

10 ‘‘ ‘(2) the purchase of tobacco products by indi11 viduals under the age of 18 is prohibited by law, and

12 ‘‘ ‘(3) proof of age will be demanded of individ13 uals under 21 years of age.

14 A licensee who fails to post a sign in violation of this sec15 tion is liable for a civil money penalty of $500.

16 ‘‘ ‘SEC. 9. NOTIFICATION OF EMPLOYEES.

17 ‘‘ ‘(a) NOTICE TO EMPLOYEES.—Within 90 days of

18 the effective date of this Act, every licensee engaged in

19 the business of distributing tobacco products at retail shall

20 implement a program to notify each employee employed

21 by that licensee who distributes tobacco products that this

22 Act—

23 ‘‘ ‘(1) prohibits the distribution of tobacco prod24 ucts to any individual under 18 years of age and the

25 purchase, receipt, possession, smoking, or other use
117

•S 1648 IS

1 or consumption of tobacco products by any individ2 ual under 18 years of age, and

3 ‘‘ ‘(2) prohibits out-of-package distribution of

4 cigarettes and smokeless tobacco products.

5 ‘‘ ‘(b) STATEMENT.—It shall be a defense to a charge

6 that an employer or licensee violated subsection (a) of this

7 section that the employee acknowledged in writing receipt

8 of a statement in substantially the following form:

9 ‘‘ ‘ ‘‘I understand that State law prohibits the dis10 tribution of tobacco products to individuals under 18

11 years of age and out-of-package distribution of ciga12 rettes and smokeless tobacco products and permits

13 a defense based on evidence that a recipient’s proof

14 of age was reasonably relied upon and appeared on

15 its face to be valid. I understand that if I sell, give,

16 or voluntarily provide tobacco products to an individ17 ual under the age of 18, I may be found responsible

18 for a civil money penalty for each violation. I prom19 ise to comply with this Act.’’.

20 ‘‘ ‘(c) VICARIOUS LIABILITY.—If an employer or li21 censee is charged with a violation of subsection (a) and

22 the employer uses as a defense to such charge the defense

23 provided by subsection (b), the employer shall be deemed

24 to be liable for such violation if such employer pays the
118

•S 1648 IS

1 penalty imposed on the employee involved in such violation

2 or in any way reimburses the employee for such penalty.

3 ‘‘ ‘SEC. 10. PENALTY FOR SALE OR DISTRIBUTION OF TO4 BACCO PRODUCTS WITHOUT A LICENSE.

5 ‘‘ ‘(a) IN GENERAL.—Any person who engages in the

6 distribution at retail of tobacco products without a license

7 required by this Act is liable for a civil money penalty in

8 an amount equal to 2 times the applicable license fee and

9 $250 for each day on which such distribution continues

10 without a license.

11 ‘‘ ‘(b) SUSPENSION OR REVOCATION.—Any person

12 who engages in the distribution at retail of tobacco prod13 ucts after a license issued under this Act has been sus14 pended or revoked is liable for a civil money penalty of

15 $500 per day for each day on which such distribution con16 tinues after the date such person received notice of such

17 suspension or revocation.

18 ‘‘ ‘SEC. 11. EFFECTIVE DATE.

19 ‘‘ ‘No person shall engage in the distribution at retail

20 of tobacco products on or after 180 days after the date

21 of enactment of this Act unless the person is authorized

22 to do so by a license issued pursuant to this section or

23 is an employee or agent of a person who has been issued

24 such a license.’.
119

•S 1648 IS

1 ‘‘SEC. 2824. FUNDING.

2 ‘‘(a) IN GENERAL.—There shall be made available

3 from the Tobacco Settlement Trust Fund to carry out this

4 subtitle $65,000,000 for each of the fiscal years 1999

5 through 2008.

6 ‘‘(b) ALLOTMENT TO STATES.—From the amount

7 made available under subsection (a) for any fiscal year,

8 the Secretary shall allot to each State the applicable per9 centage of such amount in accordance with the following

10 table:

State Applicable Percentage

Alabama ................................................................. 1.238619

Alaska .................................................................... 0.500000

Arizona .................................................................. 1.134776

Arkansas ................................................................ 0.732229

California ............................................................... 8.585426

Colorado ................................................................ 1.027658

Connecticut ............................................................ 1.557000

Delaware ................................................................ 0.500000

District of Columbia .............................................. 0.521120

Florida ................................................................... 3.500870

Georgia .................................................................. 1.956917

Hawaii ................................................................... 0.626458

Idaho ..................................................................... 0.500000

Illinois .................................................................... 4.166040

Indiana .................................................................. 1.671714

Iowa ....................................................................... 0.739712

Kansas ................................................................... 0.743167

Kentucky ............................................................... 1.828537

Louisiana ............................................................... 1.868947

Maine ..................................................................... 0.848964

Maryland ............................................................... 2.000535

Massachusetts ........................................................ 3.607905

Michigan ................................................................ 4.320991

Minnesota .............................................................. 2.412484

Mississippi ............................................................. 0.830156

Missouri ................................................................. 1.617624

Montana ................................................................ 0.500000

Nebraska ............................................................... 0.500000

Nevada ................................................................... 0.500000

New Hampshire ..................................................... 0.538242

New Jersey ............................................................ 3.406803

New Mexico ........................................................... 0.500000

New York ............................................................... 14.166024
120

•S 1648 IS

North Carolina ...................................................... 2.045166

North Dakota ........................................................ 0.500000

Ohio ....................................................................... 4.572863

Oklahoma .............................................................. 0.820915

Oregon ................................................................... 1.065587

Pennsylvania .......................................................... 5.102394

Rhode Island ......................................................... 0.801176

South Carolina ...................................................... 0.861529

South Dakota ........................................................ 0.500000

Tennessee .............................................................. 2.417855

Texas ..................................................................... 4.340060

Utah ...................................................................... 0.500000

Vermont ................................................................. 0.500000

Virginia .................................................................. 1.339502

Washington ............................................................ 1.749731

West Virginia ......................................................... 0.978560

Wisconsin ............................................................... 2.046211

Wyoming ................................................................ 0.500000

American Samoa ................................................... 0.008463

N. Mariana Islands ............................................... 0.001481

Guam ..................................................................... 0.006343

U.S. Virgin Islands ................................................ 0.004683

Puerto Rico ........................................................... 0.188344

1 ‘‘SEC. 2825. REGULATIONS.

2 ‘‘Not later than 12 months after the date of enact3 ment of this title, the Secretary, acting through the Office

4 on Smoking and Health of the Centers for Disease Control

5 and Prevention, shall promulgate regulations to implement

6 this subtitle.

7 ‘‘Subtitle C—State and Community

8 Action Program

9 ‘‘SEC. 2831. FUNDING FROM TOBACCO SETTLEMENT TRUST

10 FUND.

11 ‘‘(a) IN GENERAL.—There shall be made available

12 from the Tobacco Settlement Trust Fund to carry out this

13 subtitle—
121

•S 1648 IS

1 ‘‘(1) $145,000,000 for each of the fiscal years

2 1999 and 2000;

3 ‘‘(2) $170,000,000 for fiscal year 2001;

4 ‘‘(3) $240,000,000 for each of the fiscal years

5 2002 and 2003;

6 ‘‘(4) $340,000,000 for each of the fiscal years

7 2004 and 2005;

8 ‘‘(5) $385,000,000 for each of the fiscal years

9 2006 and 2007; and

10 ‘‘(6) $440,000,000 for fiscal year 2008.

11 ‘‘(b) SUNSET PROVISION.—This subtitle shall termi12 nate on September 30, 2009.

13 ‘‘SEC. 2832. ALLOTMENTS.

14 ‘‘(a) IN GENERAL.—From the amount made avail15 able under section 2831 for any fiscal year, the Secretary,

16 acting through the Director of the Office on Smoking and

17 Health of the Centers for Disease Control and Prevention

18 (referred to in this subtitle as the ‘Director’), shall allot

19 to each State the applicable percentage of such amount

20 in accordance with the following table:

State Applicable Percentage

Alabama ................................................................. 1.238619

Alaska .................................................................... 0.500000

Arizona .................................................................. 1.134776

Arkansas ................................................................ 0.732229

California ............................................................... 8.585426

Colorado ................................................................ 1.027658

Connecticut ............................................................ 1.557000

Delaware ................................................................ 0.500000

District of Columbia .............................................. 0.521120

Florida ................................................................... 3.500870

Georgia .................................................................. 1.956917
122

•S 1648 IS

Hawaii ................................................................... 0.626458

Idaho ..................................................................... 0.500000

Illinois .................................................................... 4.166040

Indiana .................................................................. 1.671714

Iowa ....................................................................... 0.739712

Kansas ................................................................... 0.743167

Kentucky ............................................................... 1.828537

Louisiana ............................................................... 1.868947

Maine ..................................................................... 0.848964

Maryland ............................................................... 2.000535

Massachusetts ........................................................ 3.607905

Michigan ................................................................ 4.320991

Minnesota .............................................................. 2.412484

Mississippi ............................................................. 0.830156

Missouri ................................................................. 1.617624

Montana ................................................................ 0.500000

Nebraska ............................................................... 0.500000

Nevada ................................................................... 0.500000

New Hampshire ..................................................... 0.538242

New Jersey ............................................................ 3.406803

New Mexico ........................................................... 0.500000

New York ............................................................... 14.166024

North Carolina ...................................................... 2.045166

North Dakota ........................................................ 0.500000

Ohio ....................................................................... 4.572863

Oklahoma .............................................................. 0.820915

Oregon ................................................................... 1.065587

Pennsylvania .......................................................... 5.102394

Rhode Island ......................................................... 0.801176

South Carolina ...................................................... 0.861529

South Dakota ........................................................ 0.500000

Tennessee .............................................................. 2.417855

Texas ..................................................................... 4.340060

Utah ...................................................................... 0.500000

Vermont ................................................................. 0.500000

Virginia .................................................................. 1.339502

Washington ............................................................ 1.749731

West Virginia ......................................................... 0.978560

Wisconsin ............................................................... 2.046211

Wyoming ................................................................ 0.500000

American Samoa ................................................... 0.008463

N. Mariana Islands ............................................... 0.001481

Guam ..................................................................... 0.006343

U.S. Virgin Islands ................................................ 0.004683

Puerto Rico ........................................................... 0.188344

1 ‘‘(b) REALLOTMENT.—To the extent that amounts

2 made available under section 2831 for a fiscal year are

3 not otherwise allotted to States because—
123

•S 1648 IS

1 ‘‘(1) 1 or more States have not submitted an

2 application or description of activities in accordance

3 with section 2835 for the fiscal year;

4 ‘‘(2) 1 or more States have notified the Sec5 retary that they do not intend to use the full amount

6 of their allotment; or

7 ‘‘(3) the Secretary has determined that the

8 State is not in compliance with this title, and there9 fore is subject to penalties under section 2837;

10 such excess amount shall be reallotted among each of the

11 remaining States in proportion to the amount otherwise

12 allotted to such States for the fiscal year involved without

13 regard to this subsection.

14 ‘‘(c) REGULATIONS.—Not later than 18 months after

15 the date of enactment of this title, the Secretary shall pro16 mulgate regulations to implement this subtitle. This sub17 title shall take effect regardless of the date on which such

18 regulations are promulgated.

19 ‘‘SEC. 2833. PAYMENTS UNDER ALLOTMENTS TO STATES.

20 ‘‘(a) IN GENERAL.—

21 ‘‘(1) METHOD OF PAYMENT.—The Secretary

22 shall make payments to States under allotments

23 under this subtitle as provided for under section 203

24 of the Intergovernmental Cooperation Act of 1968.
124

•S 1648 IS

1 ‘‘(2) AVAILABILITY OF FUNDS.—Any amount

2 paid to a State for a fiscal year under this subtitle

3 and remaining unobligated at the end of such year

4 shall remain available to such State for the next fis5 cal year for the purposes for which such payment

6 was made.

7 ‘‘(b) REDUCTIONS.—The Secretary, at the request of

8 a State, may reduce the amount of payments to the State

9 under subsection (a) by—

10 ‘‘(1) the fair market value of any supplies or

11 equipment furnished by the Secretary to the State;

12 and

13 ‘‘(2) the amount of the pay, allowances, and

14 travel expenses of any officer or employee of the

15 Federal Government when detailed to the State and

16 the amount of any other costs incurred in connection

17 with the detail of such officer or employee;

18 when the furnishing of such supplies or equipment or the

19 detail of such an officer or employee is for the convenience

20 of and at the request of the State and for the purpose

21 of conducting activities described in section 2834. The

22 amount by which any payment is so reduced shall be avail23 able for payment by the Secretary of the costs incurred

24 in furnishing the supplies or equipment or in detailing the

25 personnel, on which reduction of the payment is based,
125

•S 1648 IS

1 and the amount shall be deemed to be part of the payment

2 and shall be deemed to have been paid to the State.

3 ‘‘SEC. 2834. USE OF ALLOTMENTS.

4 ‘‘(a) STATE AND COMMUNITY ACTION ACTIVITIES.—

5 ‘‘(1) IN GENERAL.—Except as provided in sub6 sections (b) and (c), amounts paid to a State under

7 section 2833 may be used for the following:

8 ‘‘(A) Activities described in the plan of the

9 State, submitted in accordance with section

10 2835, including—

11 ‘‘(i) evidence-based State and commu12 nity initiatives for tobacco use prevention

13 and control;

14 ‘‘(ii) infrastructure development mod15 eled after the National Cancer Society’s

16 ASSIST program, or another evidence17 based model approved by the Director;

18 ‘‘(iii) to develop effective counter ad19 vertising;

20 ‘‘(iv) the development and implemen21 tation of anti-tobacco education programs

22 and public policy initiatives; and

23 ‘‘(v) school-based efforts to prevent

24 tobacco use and addiction, developed sci25 entifically and approved by the Director.
126

•S 1648 IS

1 ‘‘(B) Planning, administration, and educational

2 activities related to the activities described in sub3 paragraph (A).

4 ‘‘(C) The monitoring and evaluation of activi5 ties carried out under subparagraphs (A) and (B).

6 ‘‘(2) TECHNICAL ASSISTANCE.—The Secretary

7 may provide technical assistance to States in plan8 ning and operating activities to be carried out under

9 this subtitle.

10 ‘‘(b) LIMITATION.—A State may not use amounts

11 paid to the State under section 2833 to—

12 ‘‘(1) purchase or improve land, purchase, con13 struct, or permanently improve (other than minor

14 remodeling) any building or other facility, or pur15 chase major medical equipment;

16 ‘‘(2) satisfy any requirement for the expendi17 ture of non-Federal funds as a condition of the re18 ceipt of Federal funds;

19 ‘‘(3) provide financial assistance to any entity

20 other than a public or nonprofit private entity; or

21 ‘‘(4) fund educational, recreational, or health

22 activities not scientifically proven to prevent youth

23 smoking or lead to success of cessation efforts

24 among youths.
127

•S 1648 IS

1 ‘‘(c) ADMINISTRATION.—Not more than 10 percent

2 of the allotment of a State for a the fiscal year under this

3 subtitle may be used by the State to administer the funds

4 paid to the State under section 2833. The State shall pay

5 from non-Federal sources the remaining costs of admin6 istering such funds.

7 ‘‘SEC. 2835. APPLICATION FOR PAYMENTS; STATE PLAN.

8 ‘‘(a) IN GENERAL.—The Secretary may make pay9 ments under section 2833 to a State for a fiscal year only

10 if—

11 ‘‘(1) the State submits to the Secretary an ap12 plication for such payments;

13 ‘‘(2) the application contains a State plan in ac14 cordance with subsection (b);

15 ‘‘(3) the application contains the certification

16 described in subsection (c);

17 ‘‘(4) the application contains such assurances

18 as the Secretary may require regarding the compli19 ance of the State with the requirements of this sub20 title (including assurances regarding compliance

21 with the agreements described in subsection (c));

22 and

23 ‘‘(5) the application is in such form and is sub24 mitted by such date as the Secretary may require.
128

•S 1648 IS

1 ‘‘(b) STATE PLAN.—A State plan required under

2 subsection (a)(2) for a fiscal year is in accordance with

3 this subsection if the plan meets the following conditions:

4 ‘‘(1) The plan is developed by the State agency

5 with principal responsibility for public health pro6 grams, in consultation with the advisory committee

7 established pursuant to subsection (c)(2).

8 ‘‘(2) The plan specifies the activities authorized

9 under section 2834 that are to be carried out with

10 payments made to the State under section 2833.

11 ‘‘(3) The plan specifies the amount of such pay12 ments to be expended for each of such activities and

13 includes a description of the programs and projects

14 to be carried out.

15 ‘‘(4) The plan describes the measurable objec16 tives, developed in consultation with the Secretary,

17 that will be used to evaluate program outcomes.

18 ‘‘(c) STATE CERTIFICATION.—The certification re19 ferred to in subsection (a)(3) for a fiscal year is a certifi20 cation to the Secretary by the chief executive officer of

21 the State involved as follows:

22 ‘‘(1)(A) In the development of the State plan

23 required in subsection (a)(2)—

24 ‘‘(i) the chief health officer of the State

25 held public hearings on the plan; and
129

•S 1648 IS

1 ‘‘(ii) proposals for the plan were made

2 public in a manner that facilitated comments

3 from public and private entities (including Fed4 eral and other public agencies).

5 ‘‘(B) The State agrees that, if any revisions are

6 made in such plan during the fiscal year, the State

7 will, with respect to the revisions, hold hearings and

8 make proposals public in accordance with subpara9 graph (A), and will submit to the Secretary a de10 scription of the revisions.

11 ‘‘(2) The State has established an advisory

12 committee in accordance with subsection (d).

13 ‘‘(3) The State agrees to expend payments

14 under section 2833 only for the activities authorized

15 in section 2834.

16 ‘‘(4) The State agrees to expend such payments

17 in accordance with the State plan submitted under

18 subsection (a)(2) (with any revisions submitted to

19 the Secretary under paragraph (1)(B)), including

20 making expenditures to carry out the strategy con21 tained in the plan pursuant to subsection (b)(5).

22 ‘‘(5)(A) The State agrees that, in the case of

23 each population for which such strategy is carried

24 out, the State will measure the extent of progress
130

•S 1648 IS

1 being made toward improving the health status of

2 the population.

3 ‘‘(B) The State agrees that—

4 ‘‘(i) the State will collect and report data

5 in accordance with section 2836(a);

6 ‘‘(ii) for purposes of subparagraph (A),

7 progress will be measured through the use of

8 the applicable uniform data items developed by

9 the Secretary under section 2836(a)(2), or if no

10 such items are applicable, through use of the

11 uniform criteria developed by the Secretary

12 under section 2836(a)(3).

13 ‘‘(6) With respect to the activities authorized in

14 section 2834, the State agrees to maintain State ex15 penditures for such activities at a level that is not

16 less than the average level of such expenditures

17 maintained by the State for the 2-year period pre18 ceding the fiscal year for which the State is applying

19 to receive payments under section 2833.

20 ‘‘(7) The State agrees to establish reasonable

21 criteria to evaluate the effective performance of enti22 ties that receive funds from such payments and pro23 cedures for procedural and substantive independent

24 State review of the failure by the State to provide

25 funds for any such entity.
131

•S 1648 IS

1 ‘‘(8) The State agrees to permit and cooperate

2 with Federal investigations undertaken in accord3 ance with section 2837.

4 ‘‘(d) STATE ADVISORY COMMITTEE.—

5 ‘‘(1) IN GENERAL.—For purposes of subsection

6 (c)(2), an advisory committee is in accordance with

7 this subsection if such committee meets the condi8 tions described in this subsection.

9 ‘‘(2) DUTIES.—A condition under paragraph

10 (1) for a State is that the duties of the committee

11 are—

12 ‘‘(A) to hold public hearings on the State

13 plan required under subsection (a)(2); and

14 ‘‘(B) to make recommendations pursuant

15 to subsection (b)(1) regarding the development

16 and implementation of such plan, including rec17 ommendations on—

18 ‘‘(i) the conduct of assessments under

19 the plan;

20 ‘‘(ii) which of the activities authorized

21 in section 2834 should be carried out in

22 the State;

23 ‘‘(iii) the allocation of payments made

24 to the State under section 2833;
132

•S 1648 IS

1 ‘‘(iv) the coordination of activities car2 ried out under such plan with relevant pro3 grams of other entities; and

4 ‘‘(v) the collection and reporting of

5 data in accordance with section 2836(a).

6 ‘‘(3) COMPOSITION.—

7 ‘‘(A) IN GENERAL.—A condition under

8 paragraph (1) for a State is that the advisory

9 committee be composed of such members of the

10 general public, and such officials of the health

11 departments of political subdivisions of the

12 State, as may be necessary to provide adequate

13 representation of the general public and of such

14 health departments.

15 ‘‘(B) REPRESENTATIVES.—With respect to

16 compliance with subparagraph (A), the mem17 bership of the advisory committee established

18 pursuant to subsection (c)(2) may include rep19 resentatives of community-based organizations

20 (including minority community-based organiza21 tions), schools of public health, and entities to

22 which the State involved awards grants or con23 tracts to carry out activities authorized under

24 section 2834.
133

•S 1648 IS

1 ‘‘(4) CHAIRPERSON; MEETINGS.—A condition

2 under paragraph (1) for a State is that the State

3 public health officer shall serve as the chairperson of

4 the advisory committee, and that the committee

5 meet not less than twice each fiscal year.

6 ‘‘SEC. 2836. REPORTS, DATA, AND AUDITS.

7 ‘‘(a) DATA.—

8 ‘‘(1) COLLECTION AND REPORTING.—For pur9 poses of section 2835(c)(5)(B)(i), a State is collect10 ing and reporting data for a fiscal year in accord11 ance with this subsection if the State submits to the

12 Secretary, not later than February 1 of the succeed13 ing fiscal year a report that—

14 ‘‘(A) describes the purposes for which the

15 State expended payments made to the State

16 under section 2833;

17 ‘‘(B) pursuant to section 2835(c)(5)(A),

18 describes the extent of progress made by the

19 State for purposes of such section;

20 ‘‘(C) meets the conditions described para21 graph (2); and

22 ‘‘(D) contains such additional information

23 regarding activities authorized under section

24 2834, and is submitted in such form, as the

25 Secretary may require.
134

•S 1648 IS

1 ‘‘(2) UNIFORM DATA SETS.—

2 ‘‘(A) IN GENERAL.—The Secretary, in con3 sultation with the States, shall develop sets of

4 data for uniformly defining levels of youth and

5 adult use of tobacco products (referred to as

6 ‘uniform tobacco product use data items’). The

7 Secretary shall develop formats for the uniform

8 collecting and reporting of information on such

9 items.

10 ‘‘(B) LATER FISCAL YEARS.—In the case of fis11 cal year 2000 and each subsequent fiscal year, a

12 condition under paragraph (1) for a State is that the

13 State will, in accordance with the applicable format

14 under subparagraph (A), collect during such year,

15 and include in the report under paragraph (1), the

16 necessary information for each of the tobacco prod17 uct use data items.

18 ‘‘(3) UNIFORM CRITERIA.—The Secretary, in

19 consultation with the States, shall establish criteria

20 for the uniform collection and reporting of data on

21 activities authorized in section 2844 with respect to

22 which no uniform tobacco product use data items

23 under paragraph (2) exist.

24 ‘‘(4) PUBLIC INSPECTION OF REPORTS.—A con25 dition under paragraph (1) for a fiscal year is that
135

•S 1648 IS

1 the State involved will make copies of the report

2 submitted under such paragraph for the fiscal year

3 available for public inspection, and will upon request

4 provide a copy of the report to any individual for

5 a charge not exceeding the cost of providing the

6 copy.

7 ‘‘(b) AUDITS.—

8 ‘‘(1) FISCAL CONTROL AND ACCOUNTING PRO9 CEDURES.—Each State shall establish fiscal control

10 and fund accounting procedures as may be necessary

11 to ensure the proper disbursal of and accounting for

12 Federal funds paid to the State under section 2833.

13 ‘‘(2) ANNUAL SUBMISSION.—Each State shall

14 annually audit its expenditures from payments re15 ceived under section 2833. Such State audits shall

16 be conducted by an entity independent of any agency

17 administering a program funded under this subtitle,

18 and, in so far as practical, in accordance with the

19 Comptroller General’s standards for auditing govern20 mental organizations, programs, activities, and func21 tions. Within 30 days following the date on which

22 each audit is completed, the chief executive officer of

23 the State shall transmit a copy of that audit to the

24 Secretary.
136

•S 1648 IS

1 ‘‘(3) REPAYMENTS.—Each State shall, after

2 being provided by the Secretary with adequate notice

3 and an opportunity for a hearing within the State,

4 repay to the United States amounts found not to

5 have been expended in accordance with the require6 ments of this subtitle or the certification provided by

7 the State under section 2835. If such repayment is

8 not made, the Secretary shall, after providing the

9 State with adequate notice and opportunity for a

10 hearing within the State, offset such amounts

11 against the amount of any allotment to which the

12 State is or may become entitled under this subtitle.

13 ‘‘(4) AVAILABILITY.—The State shall make cop14 ies of the reports and audits required by this sub15 section available for public inspection within the

16 State.

17 ‘‘(5) EVALUATION.—The Comptroller General

18 of the United States shall, from time to time, evalu19 ate the expenditures by the States of payments

20 under this subtitle in order to ensure that expendi21 tures are consistent with the provisions of this sub22 title and the certification provide by the State under

23 section 2835.

24 ‘‘(6) REPORT BY SECRETARY.—Not later than

25 October 1, 2000, the Secretary shall prepare and
137

•S 1648 IS

1 submit to the appropriate committees of Congress a

2 report concerning the activities of the States that

3 have received funds under this subtitle and may in4 clude in the report any recommendations for appro5 priate changes in legislation.

6 ‘‘(c) NONAPPLICATION OF CERTAIN PROVISIONS.—

7 Title XVII of the Omnibus budget Reconciliation Act of

8 1981 shall not apply with respect to audits of funds allot9 ted under this subtitle.

10 ‘‘SEC. 2837. WITHHOLDING.

11 ‘‘(a) WITHHOLDING FOR MISUSE.—

12 ‘‘(1) IN GENERAL.—The Secretary shall, after

13 adequate notice and opportunity for a hearing con14 ducted within the affected State, withhold funds

15 from any State which does not use its allotment in

16 accordance with the requirements of this subtitle or

17 the certifications otherwise provided by States under

18 this subtitle. The Secretary shall withhold such

19 funds until the Secretary finds that the reason for

20 the withholding has been removed and there is rea21 sonable assurance that it will not recur.

22 ‘‘(2) INVESTIGATION.—The Secretary may not

23 institute proceedings to withhold funds under para24 graph (1) unless the Secretary has conducted an in25 vestigation concerning whether the State has used
138

•S 1648 IS

1 its allotment in accordance with the requirements of

2 this subtitle or the certifications otherwise provided

3 under this subtitle. Investigations required by this

4 paragraph shall be conducted within the affected

5 State by qualified investigators.

6 ‘‘(3) RESPONSE TO COMPLAINTS.—The Sec7 retary shall respond in an expeditious manner to

8 complaints of a substantial or serious nature that a

9 State has failed to use funds in accordance with the

10 requirements of this subtitle or the certifications

11 otherwise provided under this subtitle.

12 ‘‘(4) MINOR FAILURES.—The Secretary may

13 not withhold funds under paragraph (1) from a

14 State for a minor failure to comply with the require15 ments of this subtitle or certifications otherwise pro16 vided under this subtitle.

17 ‘‘(b) INVESTIGATIONS.—

18 ‘‘(1) BY SECRETARY.—The Secretary shall con19 duct in several States in each fiscal year investiga20 tions of the use of funds received by the States

21 under this subtitle in order to evaluate compliance

22 with the requirements of this subtitle and certifi23 cations otherwise provided under this subtitle.

24 ‘‘(2) BY COMPTROLLER GENERAL.—The Comp25 troller General of the United States may conduct in-
139

•S 1648 IS

1 vestigations of the use of funds received under this

2 subtitle by a State in order to insure compliance

3 with the requirements of this subtitle and certifi4 cations otherwise provided under this subtitle.

5 ‘‘(c) AVAILABILITY OF RECORDS.—Each State, and

6 each entity which has received funds from an allotment

7 made to a State under this subtitle, shall make appro8 priate books, documents, papers, and records available to

9 the Secretary or the Comptroller General of the United

10 States, or any of their duly authorized representatives, for

11 examination, copying, or mechanical reproduction on or

12 off the premises of the appropriate entity upon a reason13 able request therefore.

14 ‘‘(d) LIMITATION.—

15 ‘‘(1) IN GENERAL.—In conducting any inves16 tigation in a State, the Secretary or the Comptroller

17 General of the United States may not make a re18 quest for any information not readily available to

19 such State or an entity which has received funds

20 from an allotment made to the State under this sub21 title or make an unreasonable request for informa22 tion to be compiled, collected, or transmitted in any

23 form not readily available.

24 ‘‘(2) NONAPPLICATION TO JUDICIAL PROCEED25 INGS.—Paragraph (1) does not apply to the collec-
140

•S 1648 IS

1 tion, compilation, or transmittal of data in the

2 course of a judicial proceeding.

3 ‘‘SEC. 2838. NONDISCRIMINATION.

4 ‘‘(a) PROGRAMS AND ACTIVITIES.—

5 ‘‘(1) IN GENERAL.—For the purpose of apply6 ing the prohibitions against discrimination on the

7 basis of age under the Age Discrimination Act of

8 1975, on the basis of handicap under section 504 of

9 the Rehabilitation Act of 1973, on the basis of sex

10 under title IX of the Education Amendments of

11 1972, or on the basis of race, color, or national ori12 gin under title VI of the Civil Rights Act of 1964,

13 programs and activities funded in whole or in part

14 with funds made available under this subtitle are

15 considered to be programs and activities receiving

16 Federal financial assistance.

17 ‘‘(2) GENDER OR RELIGION.—No person shall

18 on the ground of gender or religion be excluded from

19 participation in, be denied the benefits of, or be sub20 jected to discrimination under, any program or ac21 tivity funded in whole or in part with funds made

22 available under this subtitle.

23 ‘‘(b) FAILURE TO COMPLY.—Whenever the Secretary

24 finds that a State, or an entity that has received a pay25 ment from an allotment to a State under this subtitle, has
141

•S 1648 IS

1 failed to comply with a provision of law referred to in sub2 section (a)(1), with subsection (a)(2), or with an applica3 ble regulation (including one prescribed to carry out sub4 section (a)(2)), the Secretary shall notify the chief execu5 tive officer of the State and shall request such officer to

6 secure compliance. If within a reasonable period of time,

7 not to exceed 60 days, the chief executive officer fails or

8 refuses to secure compliance, the Secretary may—

9 ‘‘(1) refer the matter to the Attorney General

10 with a recommendation that an appropriate civil ac11 tion be instituted;

12 ‘‘(2) exercise the powers and functions provided

13 by title VI of the Civil Rights Act of 1964, the Age

14 Discrimination Act of 1975, or section 504 of the

15 Rehabilitation Act of 1973, as may be applicable; or

16 ‘‘(3) take such other action as may be provided

17 by law.

18 ‘‘(c) ACTION BY ATTORNEY GENERAL.—When a

19 matter is referred to the Attorney General pursuant to

20 subsection (b)(1), or whenever he has reason to believe

21 that a State or an entity is engaged in a pattern or prac22 tice in violation of a provision of law referred to in sub23 section (a)(1) or in violation of subsection (a)(2), the At24 torney General may bring a civil action in any appropriate
142

•S 1648 IS

1 district court of the United States for such relief as may

2 be appropriate, including injunctive relief.

3 ‘‘SEC. 2839. CRIMINAL PENALTY FOR FALSE STATEMENTS.

4 ‘‘Whoever—

5 ‘‘(1) knowingly and willfully makes or causes to

6 be made any false statement or representation of a

7 material fact in connection with the furnishing of

8 items or services for which payment may be made by

9 a State from funds allotted to the State under this

10 subtitle; or

11 ‘‘(2) having knowledge of the occurrence of any

12 event affecting his or her initial or continued right

13 to any such payment conceals or fails to disclose

14 such event with an intent fraudulently to secure

15 such payment either in a greater amount than is due

16 or when no such payment is authorized;

17 shall be fined not more than $25,000 or imprisoned for

18 not more than 5 years, or both.

19 ‘‘Subtitle D—Smoking Cessation

20 Programs

21 ‘‘SEC. 2841. FUNDING FROM TOBACCO SETTLEMENT TRUST

22 FUND.

23 ‘‘(a) FUNDING.—There shall be made available from

24 the Tobacco Settlement Trust Fund to carry out this sec25 tion—
143

•S 1648 IS

1 ‘‘(1) $1,000,000,000 for each of the fiscal years

2 1999 through 2002; and

3 ‘‘(2) $1,500,000,000 for each of the fiscal years

4 2003 through 2008.

5 ‘‘(b) LIMITATION.—Not more than 2 percent of the

6 amount available for any fiscal year under subsection (a)

7 shall be made available to the Secretary to carry out the

8 activity described in section 2842(c).

9 ‘‘(c) SUNSET PROVISION.—This subtitle shall termi10 nate on September 30, 2009.

11 ‘‘SEC. 2842. ALLOTMENTS.

12 ‘‘(a) IN GENERAL.—From the amount made avail13 able under section 2841 for any fiscal year, the Secretary

14 shall allot to each State the applicable percentage of such

15 amount in accordance with the following table:

State Applicable Percentage

Alabama ................................................................. 1.238619

Alaska .................................................................... 0.500000

Arizona .................................................................. 1.134776

Arkansas ................................................................ 0.732229

California ............................................................... 8.585426

Colorado ................................................................ 1.027658

Connecticut ............................................................ 1.557000

Delaware ................................................................ 0.500000

District of Columbia .............................................. 0.521120

Florida ................................................................... 3.500870

Georgia .................................................................. 1.956917

Hawaii ................................................................... 0.626458

Idaho ..................................................................... 0.500000

Illinois .................................................................... 4.166040

Indiana .................................................................. 1.671714

Iowa ....................................................................... 0.739712

Kansas ................................................................... 0.743167

Kentucky ............................................................... 1.828537

Louisiana ............................................................... 1.868947

Maine ..................................................................... 0.848964

Maryland ............................................................... 2.000535

Massachusetts ........................................................ 3.607905
144

•S 1648 IS

Michigan ................................................................ 4.320991

Minnesota .............................................................. 2.412484

Mississippi ............................................................. 0.830156

Missouri ................................................................. 1.617624

Montana ................................................................ 0.500000

Nebraska ............................................................... 0.500000

Nevada ................................................................... 0.500000

New Hampshire ..................................................... 0.538242

New Jersey ............................................................ 3.406803

New Mexico ........................................................... 0.500000

New York ............................................................... 14.166024

North Carolina ...................................................... 2.045166

North Dakota ........................................................ 0.500000

Ohio ....................................................................... 4.572863

Oklahoma .............................................................. 0.820915

Oregon ................................................................... 1.065587

Pennsylvania .......................................................... 5.102394

Rhode Island ......................................................... 0.801176

South Carolina ...................................................... 0.861529

South Dakota ........................................................ 0.500000

Tennessee .............................................................. 2.417855

Texas ..................................................................... 4.340060

Utah ...................................................................... 0.500000

Vermont ................................................................. 0.500000

Virginia .................................................................. 1.339502

Washington ............................................................ 1.749731

West Virginia ......................................................... 0.978560

Wisconsin ............................................................... 2.046211

Wyoming ................................................................ 0.500000

American Samoa ................................................... 0.008463

N. Mariana Islands ............................................... 0.001481

Guam ..................................................................... 0.006343

U.S. Virgin Islands ................................................ 0.004683

Puerto Rico ........................................................... 0.188344

1 ‘‘(b) REALLOTMENT.—To the extent that amounts

2 made available under section 2831 for a fiscal year are

3 not otherwise allotted to States because—

4 ‘‘(1) 1 or more States have not submitted an

5 application or description of activities in accordance

6 with section 2845 for the fiscal year;

7 ‘‘(2) 1 or more States have notified the Sec8 retary that they do not intend to use the full amount

9 of their allotment; or
145

•S 1648 IS

1 ‘‘(3) the Secretary has determined that the

2 State is not in compliance with this title, and there3 fore is subject to penalties under section 2847;

4 such excess amount shall be reallotted among each of the

5 remaining States in proportion to the amount otherwise

6 allotted to such States for the fiscal year involved without

7 regard to this subsection.

8 ‘‘(c) ANALYSES.—The Secretary, acting through the

9 Administrator of the Agency Health Care Policy and Re10 search, shall conduct periodic analyses of the best avail11 able scientific information in the area of smoking and to12 bacco product use cessation.

13 ‘‘(d) REGULATIONS.—Not later than 9 months after

14 the date of enactment of this title, the Secretary shall pro15 mulgate regulations to implement this subtitle. This sub16 title shall take effect regardless of the date on which such

17 regulations are promulgated.

18 ‘‘SEC. 2843. PAYMENTS UNDER ALLOTMENTS TO STATES.

19 ‘‘(a) IN GENERAL.—

20 ‘‘(1) METHOD OF PAYMENT.—The Secretary

21 shall make payments to States under allotments

22 under this subtitle as provided for under section 203

23 of the Intergovernmental Cooperation Act of 1968.

24 ‘‘(2) AVAILABILITY OF FUNDS.—Any amount

25 paid to a State for a fiscal year under this subtitle
146

•S 1648 IS

1 and remaining unobligated at the end of such year

2 shall remain available to such State for the next fis3 cal year for the purposes for which such payment

4 was made.

5 ‘‘(b) REDUCTIONS.—The Secretary, at the request of

6 a State, may reduce the amount of payments to the State

7 under subsection (a) by—

8 ‘‘(1) the fair market value of any supplies or

9 equipment furnished by the Secretary to the State;

10 and

11 ‘‘(2) the amount of the pay, allowances, and

12 travel expenses of any officer or employee of the

13 Federal Government when detailed to the State and

14 the amount of any other costs incurred in connection

15 with the detail of such officer or employee;

16 when the furnishing of such supplies or equipment or the

17 detail of such an officer or employee is for the convenience

18 of and at the request of the State and for the purpose

19 of conducting activities described in section 2844. The

20 amount by which any payment is so reduced shall be avail21 able for payment by the Secretary of the costs incurred

22 in furnishing the supplies or equipment or in detailing the

23 personnel, on which reduction of the payment is based,

24 and the amount shall be deemed to be part of the payment

25 and shall be deemed to have been paid to the State.
147

•S 1648 IS

1 ‘‘SEC. 2844. USE OF ALLOTMENTS.

2 ‘‘(a) STATE AND COMMUNITY ACTION ACTIVITIES.—

3 ‘‘(1) IN GENERAL.—Except as provided in sub4 sections (b) and (c), amounts paid to a State under

5 section 2843 may be used for the following:

6 ‘‘(A) Activities described in the plan of the

7 State, submitted in accordance with section

8 2845, including—

9 ‘‘(i) science-based programs designed

10 to assist individuals who to quit their use

11 of tobacco products;

12 ‘‘(ii) training in cessation intervention

13 methods for health plans and health pro14 fessionals, including physicians, nurses,

15 dentists, and other health care providers;

16 and

17 ‘‘(iii) programs to encourage health

18 insurers and health plans to provide cov19 erage for science-based tobacco use ces20 sation treatment.

21 ‘‘(B) Planning, administration, and educational

22 activities related to the activities described in sub23 paragraph (A).

24 ‘‘(C) The monitoring and evaluation of ac25 tivities carried out under subparagraphs (A)

26 and (B).
148

•S 1648 IS

1 ‘‘(2) COORDINATION.—Tobacco use cessation

2 activities permitted under paragraph (1) may be

3 conducted in coordination with the following pro4 grams:

5 ‘‘(A) The special supplemental food pro6 gram under section 17 of the Child Nutrition

7 Act of 1966 (42 U.S.C. 1786)

8 ‘‘(B) The Maternal and Child Health Serv9 ices Block Grant program under title V of the

10 Social Security Act (42 U.S.C. 701 et seq.).

11 ‘‘(C) The State Children’s Health Insur12 ance Program of the State under title XXI of

13 the Social Security Act (42 U.S.C. 13397aa et

14 seq.).

15 ‘‘(D) A Head Start program under the

16 Head Start Act (42 U.S.C. 9801 et seq.).

17 ‘‘(E) The school lunch program under the

18 National School Lunch Act (42 U.S.C. 1751 et

19 seq.).

20 ‘‘(F) An Indian Health Service Program.

21 ‘‘(G) The community health center pro22 gram under section 330 of the Public Health

23 Service Act (42 U.S.C. 254b).

24 ‘‘(H) Programs under title X of the Public

25 Health Service Act (42 U.S.C. 300 et seq.).
149

•S 1648 IS

1 ‘‘(I) State-initiated smoking cessation pro2 grams that include provisions for reimbursing

3 individuals for medications or other therapeutic

4 techniques.

5 ‘‘(J) The substance abuse and mental

6 health services block grant program, and the

7 preventive health services block grant program,

8 under title XIX of the Public Health Service

9 Act (42 U.S.C. 300w et seq.).

10 ‘‘(K) The medicaid program under title

11 XIX of the Social Security Act (42 U.S.C. 1396

12 et seq.).

13 ‘‘(L) Programs administered by the De14 partment of Veterans Affairs.

15 ‘‘(3) TECHNICAL ASSISTANCE.—The Secretary

16 may provide technical assistance to States in plan17 ning and operating activities to be carried out under

18 this subtitle.

19 ‘‘(b) LIMITATION.—A State may not use amounts

20 paid to the State under section 2843 to—

21 ‘‘(1) make cash payments to intended recipients

22 of tobacco use cessation services;

23 ‘‘(2) purchase or improve land, purchase, con24 struct, or permanently improve (other than minor
150

•S 1648 IS

1 remodeling) any building or other facility, or pur2 chase major medical equipment;

3 ‘‘(3) satisfy any requirement for the expendi4 ture of non-Federal funds as a condition of the re5 ceipt of Federal funds; or

6 ‘‘(4) provide financial assistance to any entity

7 other than a public or nonprofit private entity.

8 ‘‘(c) ADMINISTRATION.—Not more than 8 percent of

9 the allotment of a State for a fiscal year under this sub10 title may be used by the State to administer the funds

11 paid to the State under section 2843. The State shall pay

12 from non-Federal sources the remaining costs of admin13 istering such funds.

14 ‘‘SEC. 2845. APPLICATION FOR PAYMENTS; STATE PLAN.

15 ‘‘(a) IN GENERAL.—The Secretary may make pay16 ments under section 2843 to a State for a fiscal year only

17 if—

18 ‘‘(1) the State submits to the Secretary an ap19 plication for such payments;

20 ‘‘(2) the application contains a State plan in ac21 cordance with subsection (b);

22 ‘‘(3) the application contains the certification

23 described in subsection (c);

24 ‘‘(4) the application contains such assurances

25 as the Secretary may require regarding the compli-
151

•S 1648 IS

1 ance of the State with the requirements of this sub2 title (including assurances regarding compliance

3 with the agreements described in subsection (c));

4 and

5 ‘‘(5) the application is in such form and is sub6 mitted by such date as the Secretary may require.

7 ‘‘(b) STATE PLAN.—A State plan required in sub8 section (a)(2) for a fiscal year is in accordance with this

9 subsection if the plan meets the following conditions:

10 ‘‘(1) The plan is developed by the State agency

11 with principal responsibility for public health pro12 grams, in consultation with the advisory committee

13 established pursuant to subsection (c)(2).

14 ‘‘(2) The plan provides for tobacco use ces15 sation treatment consistent with the smoking ces16 sation guidelines issued by the Agency for Health

17 Care Policy and Research, or another evidence-based

18 guideline approved by the Secretary.

19 ‘‘(3) The plan specifies the populations in the

20 State for which such activities are to be carried out,

21 and specifies the populations in the State that have

22 a disparate need for such activities.

23 ‘‘(4) With respect to each population specified

24 under paragraph (3), the plan contains a strategy
152

•S 1648 IS

1 for expending such payments to carry out such ac2 tivities. Such strategy shall include—

3 ‘‘(A) a description of the programs and

4 projects to be carried out;

5 ‘‘(B) an estimate of the number of individ6 uals to be served by the programs and projects;

7 and

8 ‘‘(C) an estimate of the number of public

9 health personnel needed to carry out the strat10 egy.

11 ‘‘(5) The plan specifies the amount of such pay12 ments to be expended for each of such activities and,

13 with respect to the activity involved, the amount to

14 be expended for each population specified under

15 paragraph (3).

16 ‘‘(6) The plan provides for training in tobacco

17 use cessation intervention methods for health plans

18 and health professionals, including physicians,

19 nurses, dentists, and other health care providers.

20 ‘‘(7) The plan ensures access to smoking ces21 sation programs for rural and underserved popu22 lations.

23 ‘‘(8) The plan describes the measurable objec24 tives, developed in consultation with the Secretary,

25 that will be used to evaluate program outcomes.
153

•S 1648 IS

1 ‘‘(c) STATE CERTIFICATION.—The certification re2 ferred to in subsection (a)(3) for a fiscal year is a certifi3 cation to the Secretary by the chief executive officer of

4 the State involved as follows:

5 ‘‘(1)(A) In the development of the State plan

6 required in subsection (a)(2)—

7 ‘‘(i) the chief health officer of the State

8 held public hearings on the plan; and

9 ‘‘(ii) proposals for the plan were made

10 public in a manner that facilitated comments

11 from public and private entities (including Fed12 eral and other public agencies).

13 ‘‘(B) The State agrees that, if any revisions are

14 made in such plan during the fiscal year, the State

15 will, with respect to the revisions, hold hearings and

16 make proposals public in accordance with subpara17 graph (A), and will submit to the Secretary a de18 scription of the revisions.

19 ‘‘(2) The State has established an advisory

20 committee in accordance with subsection (d).

21 ‘‘(3) The State agrees to expend payments

22 under section 2843 only for the activities authorized

23 in section 2844.

24 ‘‘(4) The State agrees to expend such payments

25 in accordance with the State plan submitted under
154

•S 1648 IS

1 subsection (a)(2) (with any revisions submitted to

2 the Secretary under paragraph (1)(B)), including

3 making expenditures to carry out the strategy con4 tained in the plan pursuant to subsection (b)(5).

5 ‘‘(5)(A) The State agrees that, in the case of

6 each population for which such strategy is carried

7 out, the State will measure the extent of progress

8 being made toward improving the health status of

9 the population.

10 ‘‘(B) The State agrees that—

11 ‘‘(i) the State will collect and report data

12 in accordance with section 2846(a)

13 ‘‘(ii) for purposes of subparagraph (A),

14 progress will be measured through the use of

15 the applicable uniform data items developed by

16 the Secretary under section 2846(a)(2), or if no

17 such items are applicable, through use of the

18 uniform criteria developed by the Secretary

19 under section 2846(a)(3).

20 ‘‘(6) With respect to the activities authorized in

21 section 2844, the State agrees to maintain State ex22 penditures for such activities at a level that is not

23 less than the average level of such expenditures

24 maintained by the State for the 2-year period pre-
155

•S 1648 IS

1 ceding the fiscal year for which the State is applying

2 to receive payments under section 2843.

3 ‘‘(7) The State agrees to establish reasonable

4 criteria to evaluate the effective performance of enti5 ties that receive funds from such payments and pro6 cedures for procedural and substantive independent

7 State review of the failure by the State to provide

8 funds for any such entity.

9 ‘‘(8) The State agrees to permit and cooperate

10 with Federal investigations undertaken in accord11 ance with section 2847.

12 ‘‘(d) STATE ADVISORY COMMITTEE.—

13 ‘‘(1) IN GENERAL.—For purposes of subsection

14 (c)(2), an Advisory Committee is in accordance with

15 this subsection if such committee meets the condi16 tions described in this subsection.

17 ‘‘(2) DUTIES.—A condition under paragraph

18 (1) for a State is that the duties of the committee

19 are—

20 ‘‘(A) to hold public hearings on the State

21 plan required under subsection (a)(2); and

22 ‘‘(B) to make recommendations pursuant

23 to subsection (b)(1) regarding the development

24 and implementation of such plan, including rec25 ommendations on—
156

•S 1648 IS

1 ‘‘(i) the conduct of assessments of the

2 public health;

3 ‘‘(ii) which of the activities authorized

4 in section 2844 should be carried out in

5 the State;

6 ‘‘(iii) the allocation of payments made

7 to the State under section 2843;

8 ‘‘(iv) the coordination of activities car9 ried out under such plan with relevant pro10 grams of other entities; and

11 ‘‘(v) the collection and reporting of

12 data in accordance with section 2846(a).

13 ‘‘(3) COMPOSITION.—

14 ‘‘(A) IN GENERAL.—A condition under

15 paragraph (1) for a State is that the Advisory

16 Committee be composed of such members of the

17 general public, and such officials of the health

18 departments of political subdivisions of the

19 State, as may be necessary to provide adequate

20 representation of the general public and of such

21 health departments.

22 ‘‘(B) REPRESENTATIVES.—With respect to

23 compliance with subparagraph (A), the mem24 bership of the advisory committee established

25 pursuant to subsection (c)(2) may include rep-
157

•S 1648 IS

1 resentatives of community-based organizations

2 (including minority community-based organiza3 tions), schools of public health, and entities to

4 which the State involved awards grants or con5 tracts to carry out activities authorized under

6 section 2844.

7 ‘‘(4) CHAIRPERSON; MEETINGS.—A condition

8 under paragraph (1) for a State is that the State

9 public health officer serves as the chairperson of the

10 committee, and that the committee meets not less

11 than twice each fiscal year.

12 ‘‘SEC. 2846. REPORTS, DATA, AND AUDITS.

13 ‘‘(a) DATA.—

14 ‘‘(1) COLLECTION AND REPORTING.—For pur15 poses of section 2845(c)(5)(B)(i), a State is collect16 ing and reporting data for a fiscal year in accord17 ance with this subsection if the State submits to the

18 Secretary, not later than February 1 of the succeed19 ing fiscal year a report that—

20 ‘‘(A) describes the purposes for which the

21 State expended payments made to the State

22 under section 2843;

23 ‘‘(B) pursuant to section 2845(c)(5)(A),

24 describes the extent of progress made by the

25 State for purposes of such section;
158

•S 1648 IS

1 ‘‘(C) meets the conditions described para2 graph (2); and

3 ‘‘(D) contains such additional information

4 regarding activities authorized under section

5 2844, and is submitted in such form, as the

6 Secretary may require.

7 ‘‘(2) UNIFORM DATA SETS.—

8 ‘‘(A) IN GENERAL.—The Secretary, in con9 sultation with the States, shall develop sets of

10 data for uniformly defining levels of youth and

11 adult use of tobacco products (referred to as

12 ‘uniform tobacco product use data items’). The

13 Secretary shall develop formats for the uniform

14 collecting and reporting of information on such

15 items.

16 ‘‘(B) LATER FISCAL YEARS.—In the case of fis17 cal year 2000 and each subsequent fiscal year, a

18 condition under paragraph (1) for a State is that the

19 State will, in accordance with the applicable format

20 under subparagraph (A), collect during such year,

21 and include in the report under paragraph (1), the

22 necessary information for each of the tobacco prod23 uct use data items.

24 ‘‘(3) UNIFORM CRITERIA.—The Secretary, in

25 consultation with the States, shall establish criteria
159

•S 1648 IS

1 for the uniform collection and reporting of data on

2 activities authorized in section 2844 with respect to

3 which no uniform tobacco product use data items

4 under paragraph (2) exist.

5 ‘‘(4) PUBLIC INSPECTION OF REPORTS.—A con6 dition under paragraph (1) for a fiscal year is that

7 the State involved will make copies of the report

8 submitted under such paragraph for the fiscal year

9 available for public inspection, and will upon request

10 provide a copy of the report to any individual for a

11 charge not exceeding the cost of providing the copy.

12 ‘‘(b) AUDITS.—

13 ‘‘(1) FISCAL CONTROL AND ACCOUNTING PRO14 CEDURES.—Each State shall establish fiscal control

15 and fund accounting procedures as may be necessary

16 to ensure the proper disbursal of and accounting for

17 Federal funds paid to the State under section 2843

18 and funds transferred for use under this subtitle.

19 ‘‘(2) ANNUAL SUBMISSION.—Each State shall

20 annually audit its expenditures from payments re21 ceived under section 2843. Such State audits shall

22 be conducted by an entity independent of any agency

23 administering a program funded under this subtitle,

24 and, in so far as practical, in accordance with the

25 Comptroller General’s standards for auditing govern-
160

•S 1648 IS

1 mental organizations, programs, activities, and func2 tions. Within 30 days following the date on which

3 each audit is completed, the chief executive officer of

4 the State shall transmit a copy of that audit to the

5 Secretary.

6 ‘‘(3) REPAYMENTS.—Each State shall, after

7 being provided by the Secretary with adequate notice

8 and an opportunity for a hearing within the State,

9 repay to the United States amounts found not to

10 have been expended in accordance with the require11 ments of this subtitle or the certification provided by

12 the State under section 2845. If such repayment is

13 not made, the Secretary shall, after providing the

14 State with adequate notice and opportunity for a

15 hearing within the State, offset such amounts

16 against the amount of any allotment to which the

17 State is or may become entitled under this subtitle.

18 ‘‘(4) AVAILABILITY.—The State shall make cop19 ies of the reports and audits required by this sub20 section available for public inspection within the

21 State.

22 ‘‘(5) EVALUATION.—The Comptroller General

23 of the United States shall, from time to time, evalu24 ate the expenditures by the States of payments

25 under this subtitle in order to ensure that expendi-
161

•S 1648 IS

1 tures are consistent with the provisions of this sub2 title and the certification provide by the State under

3 section 2845.

4 ‘‘(6) REPORT BY SECRETARY.—Not later than

5 October 1, 2000, the Secretary shall prepare and

6 submit to the appropriate committees of Congress a

7 report concerning the activities of the States that

8 have received funds under this subtitle and may in9 clude in the report any recommendations for appro10 priate changes in legislation.

11 ‘‘(c) NONAPPLICATION OF CERTAIN PROVISIONS.—

12 Title XVII of the Omnibus Budget Reconciliation Act of

13 1981 shall not apply with respect to audits of funds allot14 ted under this subtitle.

15 ‘‘SEC. 2847. WITHHOLDING.

16 ‘‘(a) WITHHOLDING FOR MISUSE.—

17 ‘‘(1) IN GENERAL.—The Secretary shall, after

18 adequate notice and opportunity for a hearing con19 ducted within the affected State, withhold funds

20 from any State which does not use its allotment in

21 accordance with the requirements of this subtitle or

22 the certifications otherwise provided by States under

23 this subtitle. The Secretary shall withhold such

24 funds until the Secretary finds that the reason for
162

•S 1648 IS

1 the withholding has been removed and there is rea2 sonable assurance that it will not recur.

3 ‘‘(2) INVESTIGATION.—The Secretary may not

4 institute proceedings to withhold funds under para5 graph (1) unless the Secretary has conducted an in6 vestigation concerning whether the State has used

7 its allotment in accordance with the requirements of

8 this subtitle or the certifications otherwise provided

9 under this subtitle. Investigations required by this

10 paragraph shall be conducted within the affected

11 State by qualified investigators.

12 ‘‘(3) RESPONSE TO COMPLAINTS.—The Sec13 retary shall respond in an expeditious manner to

14 complaints of a substantial or serious nature that a

15 State has failed to use funds in accordance with the

16 requirements of this subtitle or the certifications

17 otherwise provided under this subtitle.

18 ‘‘(4) MINOR FAILURES.—The Secretary may

19 not withhold funds under paragraph (1) from a

20 State for a minor failure to comply with the require21 ments of this subtitle or certifications otherwise pro22 vided under this subtitle.

23 ‘‘(b) INVESTIGATIONS.—

24 ‘‘(1) BY SECRETARY.—The Secretary shall con25 duct in several States in each fiscal year investiga-
163

•S 1648 IS

1 tions of the use of funds received by the States

2 under this subtitle in order to evaluate compliance

3 with the requirements of this subtitle and certifi4 cations otherwise provided under this subtitle.

5 ‘‘(2) BY COMPTROLLER GENERAL.—The Comp6 troller General of the United States may conduct in7 vestigations of the use of funds received under this

8 subtitle by a State in order to insure compliance

9 with the requirements of this subtitle and certifi10 cations otherwise provided under this subtitle.

11 ‘‘(c) AVAILABILITY OF RECORDS.—Each State, and

12 each entity which has received funds from an allotment

13 made to a State under this subtitle, shall make appro14 priate books, documents, papers, and records available to

15 the Secretary or the Comptroller General of the United

16 States, or any of their duly authorized representatives, for

17 examination, copying, or mechanical reproduction on or

18 off the premises of the appropriate entity upon a reason19 able request therefore.

20 ‘‘(d) LIMITATION.—

21 ‘‘(1) IN GENERAL.—In conducting any inves22 tigation in a State, the Secretary or the Comptroller

23 General of the United States may not make a re24 quest for any information not readily available to

25 such State or an entity which has received funds
164

•S 1648 IS

1 from an allotment made to the State under this sub2 title or make an unreasonable request for informa3 tion to be compiled, collected, or transmitted in any

4 form not readily available.

5 ‘‘(2) NONAPPLICATION TO JUDICIAL PROCEED6 INGS.—Paragraph (1) does not apply to the collec7 tion, compilation, or transmittal of data in the

8 course of a judicial proceeding.

9 ‘‘SEC. 2848. NONDISCRIMINATION.

10 ‘‘(a) PROGRAMS AND ACTIVITIES.—

11 ‘‘(1) IN GENERAL.—For the purpose of apply12 ing the prohibitions against discrimination on the

13 basis of age under the Age Discrimination Act of

14 1975, on the basis of handicap under section 504 of

15 the Rehabilitation Act of 1973, on the basis of sex

16 under title IX of the Education Amendments of

17 1972, or on the basis of race, color, or national ori18 gin under title VI of the Civil Rights Act of 1964,

19 programs and activities funded in whole or in part

20 with funds made available under this subtitle are

21 considered to be programs and activities receiving

22 Federal financial assistance.

23 ‘‘(2) GENDER OR RELIGION.—No person shall

24 on the ground of gender or religion be excluded from

25 participation in, be denied the benefits of, or be sub-
165

•S 1648 IS

1 jected to discrimination under, any program or ac2 tivity funded in whole or in part with funds made

3 available under this subtitle.

4 ‘‘(b) FAILURE TO COMPLY.—Whenever the Secretary

5 finds that a State, or an entity that has received a pay6 ment from an allotment to a State under this subtitle, has

7 failed to comply with a provision of law referred to in sub8 section (a)(1), with subsection (a)(2), or with an applica9 ble regulation (including one prescribed to carry out sub10 section (a)(2)), the Secretary shall notify the chief execu11 tive officer of the State and shall request such officer to

12 secure compliance. If within a reasonable period of time,

13 not to exceed 60 days, the chief executive officer fails or

14 refuses to secure compliance, the Secretary may—

15 ‘‘(1) refer the matter to the Attorney General

16 with a recommendation that an appropriate civil ac17 tion be instituted;

18 ‘‘(2) exercise the powers and functions provided

19 by title VI of the Civil Rights Act of 1964, the Age

20 Discrimination Act of 1975, or section 504 of the

21 Rehabilitation Act of 1973, as may be applicable; or

22 ‘‘(3) take such other action as may be provided

23 by law.

24 ‘‘(c) ACTION BY ATTORNEY GENERAL.—When a

25 matter is referred to the Attorney General pursuant to
166

•S 1648 IS

1 subsection (b)(1), or whenever he has reason to believe

2 that a State or an entity is engaged in a pattern or prac3 tice in violation of a provision of law referred to in sub4 section (a)(1) or in violation of subsection (a)(2), the At5 torney General may bring a civil action in any appropriate

6 district court of the United States for such relief as may

7 be appropriate, including injunctive relief.

8 ‘‘SEC. 2849. CRIMINAL PENALTY FOR FALSE STATEMENTS.

9 ‘‘Whoever—

10 ‘‘(1) knowingly and willfully makes or causes to

11 be made any false statement or representation of a

12 material fact in connection with the furnishing of

13 items or services for which payment may be made by

14 a State from funds allotted to the State under this

15 subtitle; or

16 ‘‘(2) having knowledge of the occurrence of any

17 event affecting his or her initial or continued right

18 to any such payment conceals or fails to disclose

19 such event with an intent fraudulently to secure

20 such payment either in a greater amount than is due

21 or when no such payment is authorized;

22 shall be fined not more than $25,000 or imprisoned for

23 not more than 5 years, or both.
167

•S 1648 IS

1 ‘‘Subtitle E—Reducing Youth

2 Smoking and Tobacco-Related

3 Diseases Through Research

4 ‘‘SEC. 2851. STUDY BY THE INSTITUTE OF MEDICINE.

5 ‘‘(a) CONTRACT.—Not later than 60 days after the

6 date of enactment of this title, the Secretary shall enter

7 into a contract with the Institute of Medicine for the con8 duct of a study on the framework for a research agenda

9 and research priorities to be used by the National Tobacco

10 Task Force established under section 2852.

11 ‘‘(b) CONSIDERATIONS.—

12 ‘‘(1) IN GENERAL.—In developing the frame13 work for the research agenda and research priorities

14 under subsection (a) the Institute of Medicine shall

15 focus on increasing knowledge concerning the bio16 logical, social, and behavioral factors involved in the

17 prevention of tobacco use, reduction of tobacco use,

18 and health consequences of tobacco use.

19 ‘‘(2) SPECIFIC CONSIDERATIONS.—In the study

20 conducted under subsection (a), the Institute of

21 Medicine shall specifically consider—

22 ‘‘(A) public health and community research

23 relating to tobacco use prevention methods, in24 cluding public education, media, community

25 strategies;
168

•S 1648 IS

1 ‘‘(B) behavioral research relating to addic2 tion;

3 ‘‘(C) health services research relating to

4 tobacco product prevention and cessation treat5 ment methodologies;

6 ‘‘(D) surveillance and epidemiology re7 search relating to tobacco; and

8 ‘‘(E) biomedical, including clinical, re9 search relating to prevention and treatment of

10 tobacco-related diseases.

11 ‘‘(c) REPORT.—Not later than 10 months after the

12 date on which the Secretary enters into the contract under

13 subsection (a), the Institute of Medicine shall prepare and

14 submit to the Secretary, the National Task Force, the

15 Committee on Labor and Human Resources of the Senate,

16 and the Committee on Commerce of the House of Rep17 resentatives, a report that shall contain the findings and

18 recommendations of the Institute for the purposes de19 scribed in subsection (b).

20 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There

21 are authorized to be appropriated $750,000 to carry out

22 this section.

23 ‘‘SEC. 2852. NATIONAL TOBACCO TASK FORCE.

24 ‘‘(a) ESTABLISHMENT.—The Secretary shall estab25 lish a National Tobacco Task Force (referred to in this
169

•S 1648 IS

1 subtitle as the ‘National Task Force’) to foster coordina2 tion among public health agencies, academic bodies, and

3 community groups that conduct or support tobacco-related

4 biomedical, clinical, behavioral, health services, public

5 health and community, and surveillance and epidemiology

6 research activities.

7 ‘‘(b) COMPOSITION.—The National Task Force shall

8 be composed of—

9 ‘‘(1) the Surgeon General;

10 ‘‘(2) the Director of the Office of Smoking and

11 Health of the Centers for Disease Control and Pre12 vention;

13 ‘‘(3) the Administrator of the Agency for

14 Health Care Policy and Research;

15 ‘‘(4) the Director of the National Institutes of

16 Health;

17 ‘‘(5) two representatives from non-governmental

18 public health or tobacco control organizations; and

19 ‘‘(6) two representatives from State or local

20 government public health agencies and offices.

21 ‘‘(c) CHAIR.—The National Task Force shall be

22 chaired by the Director of the Centers for Disease Control

23 and Prevention, or a designee of the Director, and shall

24 be staffed by the Centers for Disease Control and Preven25 tion.
170

•S 1648 IS

1 ‘‘(d) DUTIES.—The Task Force shall—

2 ‘‘(1) in accordance with research agenda rec3 ommended under section 2851, coordinate and ad4 vise tobacco-related research activities among Fed5 eral public health service agencies;

6 ‘‘(2) collect and make available to States and

7 communities, through publication and other appro8 priate means, evidence-based tobacco-related re9 search results and recommendations and the prac10 tical application of such results; and

11 ‘‘(3) report on a biennial basis to the Secretary

12 and the Committee on Labor and Human Resources

13 of the Senate, and the Committee on Commerce of

14 the House of Representatives on the current and

15 planned activities of participating Federal agencies;

16 ‘‘(e) RESEARCH ACTIVITIES.—The research activities

17 referred to in subsection (a) shall be designed to address

18 tobacco-related research priorities, and shall include—

19 ‘‘(1) the development of effective strategies to

20 prevent the use of tobacco products among youth;

21 ‘‘(2) an outline of cost-effective, accessible, and

22 successful methods for tobacco use cessation among

23 adults and youths who want to quit;

24 ‘‘(3) the development of breakthroughs in the

25 understanding of the effects on the human body of
171

•S 1648 IS

1 nicotine and other non-tobacco constituents of to2 bacco products; and

3 ‘‘(4) the development of an enhanced ability to

4 prevent and treat tobacco-related diseases.

5 ‘‘SEC. 2853. RESEARCH ACTIVITIES OF THE CENTERS FOR

6 DISEASE CONTROL AND PREVENTION.

7 ‘‘(a) FUNDING.—There shall be made available from

8 the Tobacco Settlement Trust Fund to carry out this sec9 tion—

10 ‘‘(1) $290,000,000 for each of the first 3 fiscal

11 years after the date of enactment of this title;

12 ‘‘(2) $345,000,000 for each of the 4th and 5th

13 fiscal years after the date of enactment of this title;

14 ‘‘(3) $245,000,000 for each of the 6th and 7th

15 fiscal years after the date of enactment of this title;

16 ‘‘(4) $200,000,000 for each of the 8th and 9th

17 fiscal years after the date of enactment of this title;

18 and

19 ‘‘(5) $145,000,000 for the 10th fiscal year after

20 the date of enactment of this title.

21 ‘‘(b) DUTIES.—The Director of the Centers for Dis22 ease Control and Prevention, working in consultation with

23 National Task Force, shall carry out tobacco-related sur24 veillance and epidemiologic studies and develop tobacco

25 control and prevention strategies under this section.
172

•S 1648 IS

1 ‘‘(c) TRIGGER.—No expenditures shall be made

2 under this section during any fiscal year in which the an3 nual amount appropriated for the Centers for Disease

4 Control and Prevention is less than the amount so appro5 priated for the prior fiscal year.

6 ‘‘SEC. 2854. RESEARCH ACTIVITIES OF THE NATIONAL IN7 STITUTES OF HEALTH.

8 ‘‘(a) FUNDING.—There shall be made available from

9 the Tobacco Settlement Trust Fund to carry out this sec10 tion $2,500,000 for each of the fiscal years 1999 through

11 2008.

12 ‘‘(b) NATIONAL CANCER INSTITUTE.—Not less than

13 40 percent of the amount made available for each fiscal

14 year under subsection (a) shall be made available to the

15 Director of the National Cancer Institute.

16 ‘‘(c) NATIONAL INSTITUTE ON DRUG ABUSE.—Not

17 less than 30 percent of the amount made available for

18 each fiscal year under subsection (a) shall be made avail19 able to the Director of the National Institute on Drug

20 Abuse.

21 ‘‘(d) EXPENDITURE OF FUNDS.—Funds made avail22 able under subsection (a) shall be expended by the Direc23 tor of the National Institutes of Health, the Director of

24 the National Cancer Institute, and the Director of the Na25 tional Institute on Drug Abuse, in consultation with the
173

•S 1648 IS

1 National Task Force, to carry out biomedical and behav2 ioral research into the causes of tobacco use, diseases and

3 conditions associated with tobacco use, and the develop4 ment of treatments for such diseases and conditions.

5 ‘‘(e) TRIGGER.—No expenditure shall be made under

6 subsection (a) during any fiscal year in which the annual

7 amount appropriated for the National Institutes of Health

8 is less than the amount so appropriated for the prior fiscal

9 year.

10 ‘‘Subtitle F—Public Health

11 Education and Promotion

12 ‘‘SEC. 2861. PUBLIC HEALTH EDUCATION AND PROMOTION.

13 ‘‘(a) ESTABLISHMENT OF BOARD.—

14 ‘‘(1) IN GENERAL.—The Secretary shall estab15 lish an independent board to be known as the ‘To16 bacco Use Prevention and Cessation Board’ (re17 ferred to in this section as the ‘Board’) to enter into

18 contracts with or award grants to eligible public and

19 nonprofit private entities to carry out public infor20 mational and educational activities designed to re21 duce the use of tobacco products.

22 ‘‘(2) APPOINTMENT.—The Board shall be com23 posed of 9 members to be appointed by the Sec24 retary, of which—
174

•S 1648 IS

1 ‘‘(A) at least 3 such members shall be indi2 viduals who are widely recognized by the gen3 eral public for achievement in the athletic, cul4 tural, entertainment, educational, business, or

5 political field;

6 ‘‘(B) at least 3 of whom shall be individ7 uals who are heads of a major public health or8 ganizations; and

9 ‘‘(C) at least 2 of whom shall be individ10 uals recognized as experts in the field of adver11 tising and marketing.

12 ‘‘(3) TERMS AND VACANCIES.—The members of

13 the Board shall serve staggered terms as determined

14 appropriate at the time of appointment by the Sec15 retary. Any vacancy in the Board shall not affect its

16 powers, but shall be filled in the same manner as the

17 original appointment.

18 ‘‘(4) POWERS.—

19 ‘‘(A) HEARINGS.—The Board may hold

20 such hearings, sit and act at such times and

21 places, take such testimony, and receive such

22 evidence as the Board considers advisable to

23 carry out the purposes of this section.

24 ‘‘(B) INFORMATION FROM FEDERAL AGEN25 CIES.—The Board may secure directly from any
175

•S 1648 IS

1 Federal department or agency such information

2 as the Board considers necessary to carry out

3 the provisions of this section.

4 ‘‘(5) TRAVEL EXPENSES.—The members of the

5 Board shall be allowed travel expenses, including per

6 diem in lieu of subsistence, at rates authorized for

7 employees of agencies under subchapter I of chapter

8 57 of title 5, United States Code, while away from

9 their homes or regular places of business in the per10 formance of services for the Board.

11 ‘‘(b) ESTABLISHMENT OF PROGRAM.—The Secretary

12 shall establish a program under which the Board may

13 enter into contracts with or award grants to eligible public

14 and nonprofit private entities to carry out public informa15 tional and educational activities designed to reduce the use

16 of tobacco products.

17 ‘‘(c) ELIGIBILITY.—To be eligible to receive a grant

18 under this section an entity shall—

19 ‘‘(1) be a—

20 ‘‘(A) public entity or a State health depart21 ment; or

22 ‘‘(B) nonprofit private entity that—

23 ‘‘(i) is not affiliated with a tobacco

24 product manufacturer or importer;
176

•S 1648 IS

1 ‘‘(ii) has a demonstrated record of

2 working effectively to reduce tobacco prod3 uct use; and

4 ‘‘(iii) has expertise in conducting a

5 multi-media communications campaign;

6 ‘‘(2) prepare and submit to the Secretary an

7 application at such time, in such manner, and con8 taining such information as the Secretary may re9 quire, including a description of the activities to be

10 conducted using amounts received under the grant

11 or contract;

12 ‘‘(3) provide assurances that amounts received

13 under the grant will be used in accordance with sub14 section (d); and

15 ‘‘(4) meet any other requirements determined

16 appropriate by the Secretary.

17 ‘‘(d) USE OF FUNDS.—An entity that receives a

18 grant or contract under this section shall use amounts

19 provided under the grant or contract to conduct multi20 media public educational or informational campaigns that

21 are designed to discourage and de-glamorize the use of to22 bacco products. Such campaigns shall be designed to dis23 courage the initiation of tobacco use by minors and en24 courage those using such products to quit.
177

•S 1648 IS

1 ‘‘(e) NEEDS OF CERTAIN POPULATIONS.—In award2 ing grants and contracts under this section, the Board

3 shall take into consideration the needs of particular popu4 lations.

5 ‘‘(f) FUNDING.—There shall be made available from

6 the Tobacco Settlement Trust Fund to carry out this sec7 tion, $500,000,000 for each of the fiscal years 1999

8 through 2008.’’.

9 TITLE III—STANDARDS TO RE10 DUCE INVOLUNTARY EXPO11 SURE TO TOBACCO SMOKE

12 SEC. 301. STANDARDS TO REDUCE INVOLUNTARY EXPO13 SURE TO TOBACCO SMOKE.

14 Section 6 of the Occupational Safety and Health Act

15 of 1970 (29 U.S.C. 655) is amended by adding at the end

16 the following:

17 ‘‘(h) Not later than 12 months after the date of en18 actment of this subsection, the Secretary shall promulgate

19 a final standard on indoor air quality in indoor work envi20 ronments in accordance with subsection (b). Such stand21 ard shall include provisions addressing control of environ22 mental tobacco smoke in both industrial and nonindustrial

23 indoor or enclosed worksites.’’.
178

•S 1648 IS

1 TITLE IV—MISCELLANEOUS

2 PROVISIONS

3 SEC. 401. SEVERABILITY.

4 If any provision of this Act (or an amendment made

5 by this Act) or the application thereof to any person or

6 circumstance is held invalid, the invalidity shall not affect

7 the other provisions of this Act (or amendment) and the

8 application of such provision to other persons or cir9 cumstances shall not be affected thereby.

Æ