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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1648 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Preventing 
Addiction to Smoking among Teens Act'' or the ``PAST Act''.
    (b) Table of Contents.--The Table of contents 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. ``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

        ``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.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Tobacco is an addictive substance the use of which 
        constitutes the Nation's number 1 preventable cause of death.
            (2) The use of tobacco products by the nation's children is 
        a serious and growing public health problem that results in new 
        generations of tobacco-dependent children and adults.
            (3) There is a consensus within the scientific, public 
        health, and medical communities that currently marketed tobacco 
        products are inherently unsafe and cause cancer, heart disease, 
        and other serious adverse health effects.
            (4) Virtually all new users of tobacco products are under 
        the age of 18. Tobacco industry advertising and marketing is 
        directed at adolescents and as such, sweeping new restrictions 
        on the sale, promotion, and distribution of such products are 
        needed.
            (5) The Office on Smoking and Health of the Centers for 
        Disease Control and Prevention has found that more than 70 
        percent of the nation's 50,000,000 current smokers have tried 
        unsuccessfully to quit, and about 20,000,000 try to quit each 
        year, with little success.
            (6) Current research shows that new and cost-effective 
        treatments are available that could dramatically improve the 
        success rate of smoking cessation attempts.
            (7) While State laboratory models, such as those developed 
        in California and Massachusetts, demonstrate that comprehensive 
        programs to reduce tobacco use can be effective, tobacco-
        related research, including policy-oriented, programmatic, 
        behavioral, public health, and biomedical research should be a 
        substantial component of a national program to prevent and 
        reduce the use of tobacco products.
            (8) Enhancing the available prevention, research, and 
        treatment resources with respect to tobacco will allow our 
        Nation to address more effectively the problems associated with 
        the use of tobacco products.
            (9) States have been instrumental in reducing smoking 
        rates, and States should continue to play a leading role in 
        tobacco control efforts.
            (10) While the Synar amendment has established the 
        importance of restricting access to tobacco products as a way 
        to reduce smoking among teens, most teens who smoke buy 
        cigarettes themselves. Thus, greater emphasis must be placed on 
        the enforcement of effective restrictions on access and the 
        elimination of marketing and advertising to children and teens.

SEC. 3. GOALS AND PURPOSES.

    (a) Goals.--It is a goal of this Act to--
            (1) decrease and prevent youth smoking and reduce the 
        marketing of tobacco products to young Americans;
            (2) decrease and prevent tobacco use by all Americans by 
        encouraging public education and smoking cessation programs and 
        to decrease the exposure of individuals to environmental 
        (second-hand) smoke;
            (3) develop effective strategies to prevent the underage 
        use of tobacco products;
            (4) advance our knowledge of the health effects of nicotine 
        and tobacco products on the human body, the factors that 
        influence behavior related to the use and nonuse of tobacco 
        products, and the factors that influence successful cessation 
        efforts;
            (5) establish the authority of the Food and Drug 
        Administration with respect to the types of tobacco products 
        that may be lawfully sold; and
            (6) invest tobacco revenues in important public health 
        priorities, such as smoking cessation, public education, 
        counter-advertising.
    (b) Purposes.--It is the purpose of this Act to--
            (1) provide for the funding by the tobacco industry of an 
        aggressive enforcement program relating to tobacco advertising 
        and distribution, including a State-administered retail 
        licensing system to prevent minors from obtaining tobacco 
        products;
            (2) subject the tobacco industry to severe financial 
        penalties in the event that underage tobacco usage does not 
        decline radically over the next 10 years;
            (3) provide annual payments to the States to fund 
        comprehensive tobacco education and use prevention programs at 
        the State and community levels;
            (4) provide annual payments to States to fund effective 
        smoking cessation treatment efforts at the State and community 
        levels;
            (5) provide for the establishment of national standards to 
        control the manufacturing of tobacco products and the 
        ingredients used in such products;
            (6) provide certain regulatory powers to the Secretary of 
        Health and Human Services to encourage the development and 
        marketing by the tobacco industry of ``less hazardous tobacco 
        products'', including the power to regulate the level of 
        nicotine in such products;
            (7) provide for the establishment of a national education-
        oriented counter advertising and tobacco use prevention 
        campaign to be funded through the National Tobacco Settlement 
        Trust Fund; and
            (8) establish a minimum Federal standard to limit smoking 
        in public places, including the halls of Congress.

SEC. 4. NATIONAL GOALS FOR THE REDUCTION IN UNDERAGE TOBACCO USE.

    (a) In General.--With respect to the average annual incidence of 
the daily use of tobacco products by individuals who are under 18 years 
of age, it shall be the national goals of the United States that such 
use be reduced as follows:
            (1) Cigarettes.--With respect to cigarettes--
                    (A) in the fifth and sixth calendar years after the 
                date of enactment of this Act the percentage decrease 
                in the use of cigarette products shall be at least 30 
                percent;
                    (B) in the seventh, eighth and ninth calendar years 
                after the date of enactment of this Act the percentage 
                decrease in the use of cigarette products shall be at 
                least 50 percent; and
                    (C) in the tenth and subsequent calendar years 
                after the date of enactment of this Act the percentage 
                decrease in the use of cigarette products shall be at 
                least 60 percent.
            (2) Smokeless tobacco products.--With respect to smokeless 
        tobacco products--
                    (A) in the fifth and sixth calendar years after the 
                date of enactment of this Act the percentage decrease 
                in the use of smokeless tobacco products shall be at 
                least 25 percent;
                    (B) in the seventh, eighth and ninth calendar years 
                after the date of enactment of this Act the percentage 
                decrease in the use of smokeless tobacco products shall 
                be at least 35 percent; and
                    (C) in the tenth and subsequent calendar years 
                after the date of enactment of this Act the percentage 
                decrease in the use of smokeless tobacco products shall 
                be at least 45 percent.
    (b) Determinations.--Determinations as to whether the national 
goals described in subsection (a) have been met shall be made in 
accordance with the provisions of subtitle A of title XXVIII of the 
Public Health Service Act (as added by section 202).

TITLE I--REGULATION OF TOBACCO PRODUCTS AND TOBACCO PRODUCT DEVELOPMENT

SEC. 101. REGULATION OF TOBACCO PRODUCTS AND TOBACCO PRODUCT 
              DEVELOPMENT.

    (a) Prohibited Acts.--Section 301 of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 331) is amended by adding at the end the 
following:
    ``(x) The introduction or delivery for introduction into interstate 
commerce of any tobacco product that does not comply with the 
provisions of chapter IX.
    ``(y) The failure by the manufacturer of a tobacco product to 
comply with a tobacco product health risk management standard, a good 
manufacturing practice standard, a tobacco product labeling, warning or 
packaging standard, or any other requirement of chapter IX.''.
    (b) Inspections.--Section 704(a)(1) of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 374(a)(1)) is amended--
            (1) in subparagraph (A), by striking ``or cosmetics'' each 
        place that such appears and inserting ``, cosmetics, or tobacco 
        products''; and
            (2) in the second sentence, by striking ``drugs or'' each 
        place that such appears and inserting ``drugs, tobacco products 
        or''.
    (c) Regulation of Tobacco Products.--The Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 301 et seq.) is amended--
            (1) by redesignating chapter IX as chapter X;
            (2) by redesignating sections 901, 902, 903, 904, and 905 
        as sections 1001, 1002, 1003, 1004, and 1005, respectively; and
            (3) by adding after chapter VIII the following new chapter:

  ``CHAPTER IX--HEALTH AND SAFETY REGULATORY REQUIREMENTS RELATING TO 
                            TOBACCO PRODUCTS

``SEC. 900. DEFINITIONS.

    ``In this chapter:
            ``(1) Cigarette.--The term `cigarette' means any product 
        which contains nicotine, is intended to be burned or heated 
        under ordinary conditions of use, and consists of--
                    ``(A) any roll of tobacco wrapped in paper or in 
                any substance not containing tobacco; and
                    ``(B) any roll of tobacco wrapped in any substance 
                containing tobacco which, because of its appearance, 
                the type of tobacco used in the filler, or its 
                packaging and labeling, is likely to be offered to, or 
                purchased by, consumers as a cigarette described in 
                subparagraph (A).
            ``(2) Cigarette tobacco.--The term `cigarette tobacco' 
        means any product that consists of loose tobacco that contains 
        or delivers nicotine and is intended for use by persons in a 
        cigarette. Unless otherwise stated, the requirements of this 
        title pertaining to cigarettes shall also apply to cigarette 
        tobacco.
            ``(3) Nicotine.--The term `nicotine' means the chemical 
        substance named 3-(1-Methyl-2-pyrrolidinyl)pyridine or 
        C<INF>10</INF>H<INF>14</INF>N<INF>2</INF>, including any salt 
        or complex of nicotine.''.
            ``(4) Smokeless tobacco.--The term `smokeless tobacco' 
        means any product that consists of cut, ground, powdered, or 
        leaf tobacco that contains nicotine and that is intended to be 
        placed in the oral or nasal cavity.
            ``(5) Tar.--The term `tar' means mainstream total 
        particulate matter minus nicotine and water.
            ``(6) Tobacco additive.--The term `tobacco additive' means 
        any substance the intended use of which results or may 
        reasonably be expected to result, directly or indirectly, in 
        the substance becoming a component of, or otherwise affecting 
        the characteristics of, any tobacco product, including any 
        substance that may have been removed from the tobacco product 
        and then readded in the substance's original or modified form.
            ``(7) Tobacco product.--The term `tobacco product' means 
        cigarettes and smokeless tobacco products.

               ``Subchapter A--Tobacco Product Regulation

``SEC. 901. STATEMENT OF GENERAL DUTIES.

    ``As part of the comprehensive health promotion and disease 
prevention program established under this chapter and the PAST Act (and 
the amendments made by such Act) relating to diseases and conditions 
associated with the use of tobacco products, and that places a special 
emphasis on discouraging the use of such products by young Americans, 
the Secretary shall--
            ``(1) receive, assess, and provide appropriate 
        confidentiality regarding information submitted to the 
        Secretary under section 902;
            ``(2) develop and implement health risk reduction standards 
        for tobacco products under section 903;
            ``(3) develop and implement good manufacturing practice 
        standards for tobacco products under section 904;
            ``(4) develop and implement tobacco product labeling, 
        warning, and packaging standards under section 905;
            ``(5) enforce, and as appropriate, revise tobacco product 
        labeling, warning, and packaging standards under section 905;
            ``(6) develop and implement standards that encourage the 
        development and use of reduced risk tobacco products under 
        section 907;
            ``(7) develop and implement tobacco product marketing 
        standards under section 908;
            ``(8) establish and oversee a tobacco products scientific 
        advisory committee under section 909 to provide advice on the 
        establishment of tobacco product marketing standards under 
        section 903, 904, 905, and 907; and
            ``(9) submit reports to Congress evaluating the 
        effectiveness of this chapter and the PAST Act as described in 
        section 910.

``SEC. 902. SUBMISSION OF HEALTH INFORMATION TO THE SECRETARY.

    ``(a) Requirement.--Not later than 6 months after the date of 
enactment of this chapter, each manufacturer or importer of tobacco 
products shall submit to the Secretary the following information:
            ``(1) A listing of all tobacco ingredients, substances and 
        compounds (other than tobacco, water or reconstituted tobacco 
        sheet made wholly from tobacco) that are, on such date, added 
        by the manufacturer to the tobacco, paper, filter or other 
        component of each tobacco product by brand and by quantity in 
        each brand and subbrand.
            ``(2) A description of the nicotine content of each tobacco 
        product measured in milligrams of nicotine.
            ``(3) All documents (including underlying scientific 
        information) relating to research activities, and research 
        findings, conducted or supported by the manufacturer (or agents 
        thereof) on the health effects of tobacco products, their 
        constituents and components, and tobacco additives, described 
        in paragraph (1).
            ``(4) All documents (including underlying scientific 
        information) relating to research activities, and research 
        findings, conducted or supported by the manufacturer that bear 
        on the issue of whether a reduction in risk to health from 
        tobacco products can occur upon the employment of technology 
        available or known to the manufacturer.
            ``(5) All documents (including underlying scientific 
        information) relating to marketing research involving the use 
        of tobacco products.
An importer of a tobacco product not manufactured in the United States 
shall supply the information required of a manufacturer under this 
subsection.
    ``(b) Annual Submission.--A manufacturer or importer that is 
required to submit information under subsection (a) shall update such 
information on an annual basis.
    ``(c) Time for Submission.--
            ``(1) In general.--At least 90 days prior to the delivery 
        for introduction into interstate commerce of a tobacco product 
        not on the market on the date of enactment of this chapter, the 
        manufacturer of such product shall provide the information 
        required under subsection (a).
            ``(2) Modification of products.--If at any time a 
        manufacturer adds to its tobacco products a new tobacco 
        additive, increases or decreases the quantity of an existing 
        tobacco additive, or eliminates a tobacco additive from any 
        tobacco product, the manufacturer shall within 60 days of such 
        action so advise the Secretary in writing.
    ``(d) Confidentiality.--
            ``(1) General rule.--Any information that is not required 
        to be disclosed to the public under this section, shall be 
        exempt from disclosure pursuant to subsection (a) of section 
        552 of title 5, United States Code, by reason of subsection 
        (b)(4) of such section, and shall be considered confidential 
        and shall not be disclosed, except that such information may be 
        disclosed to other officers or employees as provided for in 
        paragraph (4) or when relevant in any proceeding under this 
        chapter.
            ``(2) Petition by manufacturer.--Upon the submission of the 
        information required under subsection (a), or the submission of 
        any other information under any other provisions of this 
        chapter, a manufacturer may petition the Secretary to exempt 
        certain ingredients, substances, or compounds or other 
        information submitted from public disclosure under this 
        subsection on the basis that such information should be 
        considered confidential as a trade secret. Such petition may be 
        accompanied by such data as the manufacturer elects to submit.
            ``(3) Determination.--Not later than 90 days after 
        receiving a petition under paragraph (2), the Secretary shall 
        make a determination with respect to whether the information 
        described in the petition should be exempt from disclosure 
        under paragraph (1) as a trade secret. The Secretary shall 
        provide the manufacturer involved with notice of such 
        determination, but the decision of the Secretary shall be 
        final.
            ``(4) Procedures for confidential information.--The 
        Secretary shall develop procedures to maintain the 
        confidentiality of information that is treated as a trade 
        secret under a determination under paragraph (3). Such 
        procedures shall include--
                    ``(A) a requirement that such information be 
                maintained in a secure facility; and
                    ``(B) a requirement that only the Secretary, or the 
                authorized agents of the Secretary, will have access to 
                the information and shall be instructed to maintain the 
                confidentiality of such information.
            ``(5) Health disclosure.--Notwithstanding any other 
        provision of this subsection, the Secretary may require that 
        any ingredient, substance, or compound contained in a tobacco 
        product that is determined to be exempt from disclosure be 
        disclosed if the Secretary determines that it is in the 
        interest of public health to disclose such ingredient, 
        substance, or compound.

``SEC. 903. TOBACCO PRODUCT HEALTH RISK REDUCTION STANDARDS.

    ``(a) Authority.--
            ``(1) In general.--The Secretary shall by regulation 
        (promulgated under the authority of section 701(a) and 
        consistent with the procedures described in section 553 of 
        title 5, United States Code) establish tobacco product health 
        risk reduction standards.
            ``(2) Consultation.--In developing and promulgating 
        regulations under this chapter, the Secretary shall consult (as 
        the Secretary determines appropriate) with--
                    ``(A) Federal public health and safety officials; 
                and
                    ``(B) other public health and safety experts, 
                including State and local public health and safety 
                officials, and other interested members of the public 
                and affected parties.
    ``(b) Procedures for the Establishment of Standards.--
            ``(1) Publication of notice.--
                    ``(A) In general.--The Secretary shall publish in 
                the Federal Register a notice of proposed rulemaking 
                for the establishment, amendment, or revocation of any 
                health risk reduction standard for a tobacco product 
                under this section. The Secretary may publish an 
                advance notice of proposed rulemaking in order to 
                solicit broad input at an earlier stage in the 
                rulemaking process.
                    ``(B) Contents of notice.--A notice of proposed 
                rulemaking for the establishment or amendment of a 
                health risk reduction standard for a tobacco product 
                shall be accompanied by a justification of the proposed 
                action and shall--
                            ``(i) invite interested persons to submit 
                        to the Secretary, within 30 days of the 
                        publication of the notice, requests for changes 
                        in the standard based on new information 
                        relevant to the standard; and
                            ``(ii) invite interested persons to submit 
                        an existing health risk reduction standard for 
                        the tobacco product, including a draft or 
                        proposed health risk reduction standard, for 
                        consideration by the Secretary.
                    ``(C) Notice of revocation.--A notice of proposed 
                rulemaking for the revocation of a health risk 
                reduction standard shall set forth a finding with 
                supporting justification that the health risk reduction 
                standard is no longer necessary with respect to the 
                tobacco product.
                    ``(D) Comments.--The Secretary shall provide for a 
                comment period of not less than 60 days after the date 
                on which a notice has been published under this 
                paragraph.
            ``(2) Request for change.--If, after the publication of a 
        notice in accordance with paragraph (1), the Secretary receives 
        a request for a change in the health risk reduction standard 
        for a tobacco product, the Secretary shall, within 60 days of 
        the publication of the notice, either deny the request and 
        provide a written response explaining the reasons for the 
        denial, or give notice of an intent to initiate such a change.
            ``(3) Regulation for establishment.--
                    ``(A) In general.--After the expiration of the 
                period for comment on a notice of proposed rulemaking 
                published under paragraph (1) with respect to a health 
risk reduction standard, and after consideration of such comments and 
any report from the tobacco products advisory committee under section 
909, the Secretary shall--
                            ``(i) promulgate a regulation establishing 
                        a health risk reduction standard and publish in 
                        the Federal Register findings on the matters 
                        referred to in subsection (b); or
                            ``(ii) publish a notice terminating the 
                        proceeding for the development of the standard 
                        together with the reasons for such termination.
                    ``(B) Contents.--A regulation establishing a health 
                risk reduction standard under subparagraph (A) shall 
                set forth the date or dates upon which the standard 
                shall take effect, but no such regulation may take 
                effect before the expiration of the 1-year period 
                beginning on the date of its publication unless the 
                Secretary determines that an earlier effective date is 
                necessary for the protection of the public health. Such 
                date or dates shall be established so as to minimize 
                economic loss to, and disruption or dislocation of, 
                domestic and international trade.
            ``(4) Amending or revoking of standards.--
                    ``(A) In general.--The Secretary, upon the 
                initiative of the Secretary or upon petition of an 
                interested person, may by regulation, promulgated in 
                accordance with the requirements of paragraphs (1), 
                (2), and (3), amend or revoke a health risk reduction 
                standard for a tobacco product.
                    ``(B) Effectiveness of amendment.--The Secretary 
                may declare a proposed amendment of a health risk 
                reduction standard under this section to be effective 
                on and after its publication in the Federal Register 
                and until the effective date of any final action taken 
                on such amendment if the Secretary determines that 
                making it so effective is in the public interest. A 
                proposed amendment of a health risk reduction standard 
                made so effective under the preceding sentence may not 
                prohibit, during the period in which it is so 
                effective, the introduction or delivery for 
                introduction into interstate commerce of a tobacco 
                product which conforms to such standard without the 
                change or changes provided by such proposed amendment.
    ``(c) Regulation of the Composition of Tobacco Products.--
            ``(1) In general.--The Secretary may adopt a health risk 
        reduction standard under this section that requires--
                    ``(A) the modification of a tobacco product in a 
                manner that involves--
                            ``(i) the gradual reduction of nicotine 
                        yields of the product;
                            ``(ii) the reduction or elimination of 
                        other harmful constituents, ingredients 
                        (including tobacco additives), substances, 
                        compounds and properties of the product in 
                        accordance with subsection (d)(4)(B), including 
                        the establishment of levels of nicotine and 
                        other components, ingredients (including 
                        tobacco additives), and constituents of the 
                        product, or smoke emitted by such products; or
                            ``(iii) other changes to reduce the 
                        likelihood of cigarette induced fires;
                    ``(B) effective not earlier than the expiration of 
                the 10-year period beginning on the date of enactment 
                of this chapter, the reduction of nicotine yields of a 
                tobacco product to zero; or
                    ``(C) effective not earlier than the expiration of 
                the 10-year period beginning on the date of enactment 
                of this chapter, the prohibition of cigarettes or 
                smokeless tobacco.
            ``(2) Considerations.--Tobacco product health risk 
        reduction standards established under this section shall--
                    ``(A) have as their objective reducing the overall 
                health risks to the public, including the reduction in 
                risk to the consumers of such products, individuals who 
                reduce or cease the use of such products, and 
                individuals who do not initiate the use of such 
                products;
                    ``(B) where necessary to meet the objectives in 
                subparagraph (A), include requirements--
                            ``(i) with respect to the construction, 
                        components, constituents, ingredients 
                        (including tobacco additives), and properties 
                        of the product, including the establishment of 
                        levels of nicotine and other components, 
                        ingredients (including tobacco additives), and 
                        constituents of the product, or smoke emitted 
                        by such products taking into account the 
                        technological and commercial feasibility of 
                        such requirements;
                            ``(ii) specifying the procedures for the 
                        testing of such products, including devising 
                        procedures to be used by tobacco product 
                        manufacturers, the Secretary, or other 
                        appropriate entities, to measure relevant 
                        health-related characteristics of such 
                        products;
                            ``(iii) for the testing of such products, 
                        including devising procedures to be used by 
                        manufacturers, the Secretary, or other 
                        appropriate entities to measure the relevant 
                        health related characteristics of such products 
                        to assess the conformity of such products with 
                        the applicable health risk reduction standards; 
                        and
                            ``(iv) to limit the sale and distribution 
                        of tobacco products to the extent authorized by 
                        this chapter;
                    ``(C) as required under section 905, prescribe 
                certain conditions pertaining to the labeling and 
                advertising of tobacco products; and
                    ``(D) comply with regulations promulgated by the 
                Secretary that specify the health risk assessment 
                procedures for the testing of tobacco and nontobacco 
                constituents contained in tobacco products and 
                determinations concerning such products under 
                subsection (d).
            ``(3) Procedure for general prohibition of tobacco products 
        and elimination of nicotine.--
                    ``(A) Nondelegation.--The Secretary may not 
                delegate the authority provided under this section to 
                promulgate a regulation that results in a general 
                prohibition of a class of tobacco products or 
                elimination of nicotine.
                    ``(B) Congressional review.--In accordance with 
                section 801 of title 5, United States Code, Congress 
                shall review, and may disapprove, any rule of the 
                Secretary establishing, amending, or revoking a tobacco 
                product health risk reduction standard, except that 
                with respect to a standard that results in a general 
                prohibition of cigarettes or smokeless tobacco or the 
                elimination of nicotine, such standard shall only take 
                effect upon the date of enactment of a joint resolution 
                of approval of such standard. The provisions of section 
                802 of title 5, United States Code, relating to certain 
                disapproval resolutions shall apply to the 
                consideration of any joint resolution of approval under 
                this subsection.
    ``(d) Tobacco Products Risk Assessment Standards.--
            ``(1) Tobacco constituents.--The health risk reduction 
        standards promulgated under subsection (c)(2)(D) with respect 
        to the testing of tobacco products shall include provisions 
        relating to the assessment of the health risks posed by the 
        components of tobacco, including but not limited to nicotine 
        and tar, and by tobacco use including carbon-monoxide.
            ``(2) Nontobacco ingredients.--
                    ``(A) In general.--The health risk reduction 
                regulations under subsection (c)(2)(D) with respect to 
                the testing of nontobacco ingredients used in tobacco 
                products--
                            ``(i) during the 5-year period beginning on 
                        the date of enactment of this chapter, shall 
                        apply to new ingredients (those ingredients 
                        that were not previously used in such products 
                        on such date of enactment) used in such 
                        products or such other ingredients for which 
the Secretary requires testing; and
                            ``(ii) after the expiration of the 5-year 
                        period described in clause (i), shall apply to 
                        all ingredients used in such products.
                    ``(B) Implementation.--In carrying out this 
                section, all requirements with respect to nontobacco 
                ingredients, substances, and compounds shall be 
                implemented in accordance with subparagraph (A).
            ``(3) Health risk assessments.--
                    ``(A) Requirement.--Not later than 5 years after 
                the date of enactment of this chapter, and annually 
                thereafter, each manufacturer shall submit to the 
                Secretary a health risk assessment for each ingredient, 
                substance, or compound that is listed under section 
                902(a)(1) with respect to each brand and subbrand of 
                tobacco product manufactured by each such manufacturer.
                    ``(B) Availability of new information.--The 
                Secretary may include in the regulations promulgated 
                under this section, provisions that permit or, as 
                appropriate, require manufacturers to, in subsequent 
                years, revise information that was submitted under 
                subparagraph (A) in previous years if new data becomes 
                available to that manufacturer. Such regulations may 
                require that a manufacturer submit a simple 
                notification to the Secretary where the manufacturer 
                determines that no new data has become available during 
                the previous year.
                    ``(C) Joint submission.--At the discretion of the 
                Secretary, the health risk assessments under this 
                paragraph may be conducted by qualified third party 
                organizations on behalf of more than 1 manufacturer for 
                1 or more product or ingredient, substance or compound 
                if a joint submission is consistent with the public 
                health. Such joint submissions shall be subject to the 
                brand specific requirements of subparagraph (A).
                    ``(D) Basis of assessment.--The health risk 
                assessment of an ingredient, substance, or compound 
                described in subparagraph (A) shall--
                            ``(i) be based on the best scientific 
                        evidence available at the time of the 
                        submission of the assessment; and
                            ``(ii) ascertain whether there is a 
                        reasonable certainty in the minds of competent 
                        scientists that the ingredient, substance, or 
                        compound is not harmful in the quantities used 
                        under the intended conditions of use.
            ``(4) Regulatory action.--
                    ``(A) Absence of a risk assessment.--Not later than 
                12 months after the date of enactment of this chapter 
                and subject to the requirements of paragraphs (1) and 
                (3)(A), the Secretary shall promulgate regulations to 
                prohibit the use of any ingredient, substance, or 
                compound in the tobacco product of a manufacturer if no 
                health risk assessment has been submitted as required 
                under this subsection by the manufacturer for the 
                ingredient, substance, or compound.
                    ``(B) Review of health risk assessments.--
                            ``(i) Approval, conditional approval, or 
                        disapproval.--The Secretary shall approve or 
                        disapprove of, or condition, the use of the 
                        ingredient, substance, or compound that was the 
                        subject of the assessment under this subsection 
                        within 180 days of the date on which the health 
                        risk assessment is received and provide notice 
                        of such approval or disapproval to the 
                        manufacturer. The manufacturer may continue to 
                        use ingredients, substances, or compounds that 
                        are the subject of such an assessment until the 
                        Secretary disapproves or conditions such 
                        ingredient, substance, or compound. The 
                        Secretary shall establish a procedure to allow 
                        manufacturers adequate time to comply with any 
                        such condition or disapproval.
                            ``(ii) General applicability.--At the 
                        discretion of the Secretary, the approval, 
                        conditional, approval, or disapproval of a 
                        particular ingredient, substance, or compound 
                        under clause (i) may by regulation be made 
                        generally applicable to tobacco product 
                        manufacturers or a subgroup of such 
                        manufacturers. In the case of a conditional 
                        approval, the Secretary shall develop a 
                        procedure to enable manufacturers to certify 
                        that the condition will be complied with.
                            ``(iii) Inaction by secretary.--If the 
                        Secretary fails to act with respect to an 
                        assessment during the period referred to in 
                        clause (i), the manufacturer submitting the 
                        assessment may continue to use the ingredient, 
                        substance, or compound involved until such time 
                        as the Secretary makes a final decision, or the 
                        succeeding annual risk assessment is submitted 
                        by the manufacturer and the ingredient, 
                        substance, or compound is subsequently 
                        disapproved or conditioned. The Secretary shall 
                        establish a procedure to allow manufacturers 
                        adequate time to comply with any such condition 
                        or disapproval.
    ``(e) Compliance.--
            ``(1) In general.--Health risk reduction standards under 
        this section shall apply to all tobacco products to which such 
        standards are relevant.
            ``(2) Limitation.--During the period in which a regulation 
        promulgated under this section establishing a health risk 
        reduction standard is in effect, a tobacco product shall not be 
        considered to be in violation of section 301 if such product is 
        in compliance with such regulation, and the requirements of 
        sections 904 and 905.
    ``(f) Evaluation.--The Secretary shall periodically evaluate the 
effectiveness of tobacco product health risk reduction standards to 
determine whether such standards should be amended to reflect new 
medical, scientific, or technological information.

``SEC. 904. GOOD MANUFACTURING PRACTICE STANDARDS.

    ``(a) Authority.--
            ``(1) In general.--The Secretary shall, in accordance with 
        subsections (a) and (b) of section 903, prescribe regulations 
        requiring that the methods used in, and the facilities and 
        controls used for, the manufacture, packing, and storage of a 
        tobacco product conform to current good manufacturing practice, 
        as prescribed in such regulations, to ensure that such products 
        will be in compliance with this chapter.
            ``(2) Registration.--The regulations promulgated under 
        paragraph (1) shall require that all tobacco product 
        manufacturers register with the Secretary.
            ``(3) Special consultation procedures.--In developing and 
        promulgating any regulation under paragraph (1) the Secretary 
        shall afford the Tobacco Products Scientific Advisory Committee 
        established under section 909 an opportunity (with a reasonable 
        time period) to submit recommendations in response to the 
        notice of proposed rulemaking.
            ``(4) Limitation.--Good manufacturing practice regulations 
        described in paragraph (1) shall be appropriate for the 
        manufacture of a product derived from a raw agricultural 
        commodity for which no therapeutic claim is made.
    ``(b) Pesticide Residues.--The regulations promulgated under 
subsection (a) shall at a minimum require, after consultation with the 
Administrator of the Environmental Protection Agency, the development 
and adherence to applicable tolerances with respect to pesticide 
chemical residues in finished tobacco products, except that such 
tolerances shall only apply if the Administrator determines that such 
tolerances are necessary to prevent such residues from being injurious 
to health when used in tobacco products.
    ``(c) Petitions for Exemptions and Variances.--
            ``(1) In general.--Any person subject to any requirement 
        prescribed by regulations under subsection (a) may petition the 
        Secretary for an exemption or variance from such requirement. 
        Such a petition shall be submitted to the Secretary in such 
        form and manner as the Secretary shall by regulation prescribe 
        and shall--
                    ``(A) in the case of a petition for an exemption 
                from a requirement, set forth the basis for the 
                petitioner's determination that compliance with the 
                requirement is not required to ensure that the tobacco 
                product is in compliance with section 903;
                    ``(B) in the case of a petition for a variance from 
                a requirement, set forth the methods proposed to be 
                used in, and the facilities and controls proposed to be 
                used for, the manufacture, packing, and storage of the 
                product in lieu of the methods, facilities, and 
                controls prescribed by the requirement; and
                    ``(C) contain such other information as the 
                Secretary shall prescribe.
            ``(2) Tobacco product requirements waiver board.--
                    ``(A) Authority.--The Secretary shall establish a 
                Tobacco Product Requirements Waiver Board (referred to 
                in this paragraph as the `Waiver Board') to provide 
                advice and make recommendations to the Secretary with 
                respect to the approval or disapproval of petitions 
submitted under paragraph (1).
                    ``(B) Membership.--The Waiver Board shall be 
                composed of 9 members to be appointed by the Secretary, 
                of which--
                            ``(i) 3 members shall be appointed from 
                        among individuals who are officers or employees 
                        of the Federal Government or a State or local 
                        government;
                            ``(ii) 2 members shall be appointed from 
                        among individuals who are representatives of 
                        the interests of the cigarette and smokeless 
                        tobacco industries;
                            ``(iii) 2 members shall be appointed from 
                        among individuals who are representatives of 
                        the interests of physicians and other health 
                        professionals; and
                            ``(iv) 2 members shall be appointed from 
                        among individuals who are representatives of 
                        the interests of the general public.
                    ``(C) Chairperson.--The Secretary shall designate 1 
                of the members of the Waiver Board to serve as the 
                Chairperson.
                    ``(D) Compensation and expenses.--
                            ``(i) Compensation.--Members of the Waiver 
                        Board who are not officers or employees of the 
                        United States, while attending conferences or 
                        meetings of the Waiver Board or otherwise 
                        serving at the request of the Secretary, shall 
                        be entitled to receive compensation at rates to 
                        be fixed by the Secretary, which rates may not 
                        exceed the daily equivalent of the rate of pay 
                        for level 4 of the Senior Executive Schedule 
                        under section 5382 of title 5, United States 
                        Code, for each day (including traveltime) they 
                        are so engaged.
                            ``(ii) Expenses.--While conducting the 
                        business of the Waiver Board away from their 
                        homes or regular places of business, each 
                        member may be allowed travel expenses, 
                        including per diem in lieu of subsistence, as 
                        authorized by section 5703 of title 5 of the 
                        United States Code for persons in the 
                        Government service employed intermittently.
            ``(3) Action on petition.--
                    ``(A) In general.--Not later than 120 days of the 
                date on which the Secretary receives the 
                recommendations of the Waiver Board, the Secretary 
                shall issue an order approving or denying a petition 
                submitted under paragraph (1). The Secretary may 
                approve--
                            ``(i) a petition for an exemption for a 
                        tobacco product from a requirement if the 
                        Secretary determines that compliance with such 
                        requirement is not required to assure that the 
                        product will comply with this section and is 
                        otherwise consistent with the public health; 
                        and
                            ``(ii) a petition for a variance for a 
                        tobacco product from a requirement if the 
                        Secretary determines that the methods to be 
                        used in, and the facilities and controls to be 
                        used for, the manufacture, packing, and storage 
                        of the product in lieu of the methods, 
                        controls, and facilities prescribed by the 
                        requirement are sufficient to ensure that the 
                        product will comply with this section and is 
                        otherwise in compliance with the public health.
                    ``(B) Conditions.--An order of the Secretary 
                approving a petition for a variance shall prescribe 
                such conditions respecting the methods used in, and the 
                facilities and controls used for, the manufacture, 
                packing, and storage of the tobacco product to be 
                granted the variance under the petition as may be 
                necessary to ensure that the product will comply with 
                this section.
            ``(4) Informal hearing.--After the issuance of an order 
        under paragraph (3) respecting a petition, the petitioner shall 
        have an opportunity for an informal hearing on such order.
    ``(d) Agricultural Producers.--The Secretary may not promulgate any 
regulation under this section that has the effect of placing regulatory 
burdens on tobacco producers (as such term is used for purposes of the 
Agricultural Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) and the 
Agricultural Act of 1949 (7 U.S.C. 1441 et seq.)) in excess of the 
regulatory burdens generally placed on other agricultural commodity 
producers.
    ``(e) Effective Date of Certain Regulations.--Regulations 
promulgated under this section shall be implemented over a 2-year 
period in consultation with manufacturers of tobacco products and 
tobacco producers.

``SEC. 905. TOBACCO PRODUCT LABELING, WARNING, AND PACKAGING STANDARDS.

    ``(a) Cigarettes.--
            ``(1) In general.--
                    ``(A) Packaging.--It shall be unlawful for any 
                person to manufacture, package, or import for sale or 
                distribution within the United States any cigarettes 
                the package of which fails to bear, in accordance with 
                the requirements of this subsection, one of the 
                following statements:
                        ``WARNING: Cigarettes Are Addictive.
                        ``WARNING: Tobacco Smoke Can Harm Your 
                        Children.
                        ``WARNING: Cigarettes Cause Fatal Lung Disease.
                        ``WARNING: Cigarettes Cause Cancer.
                        ``WARNING: Cigarettes Cause Strokes And Heart 
                        Disease.
                        ``WARNING: Smoking During Pregnancy Can Harm 
                        Your Baby.
                        ``WARNING: Smoking Can Kill You.
                        ``WARNING: Tobacco Smoke Causes Fatal Lung 
                        Disease In Nonsmokers.
                        ``WARNING: Quitting Smoking Now Greatly Reduces 
                        Serious Risks To Your Health.
                    ``(B) Advertising.--It shall be unlawful for any 
                manufacturer or importer of cigarettes to advertise or 
                cause to be advertised within the United States any 
                cigarette unless the advertising bears, in accordance 
                with the requirements of this subsection, one of the 
                following statements:
                        ``WARNING: Cigarettes Are Addictive.
                        ``WARNING: Tobacco Smoke Can Harm Your 
                        Children.
                        ``WARNING: Cigarettes Cause Fatal Lung Disease.
                        ``WARNING: Cigarettes Cause Cancer.
                        ``WARNING: Cigarettes Cause Strokes And Heart 
                        Disease.
                        ``WARNING: Smoking During Pregnancy Can Harm 
                        Your Baby.
                        ``WARNING: Smoking Can Kill You.
                        ``WARNING: Tobacco Smoke Causes Fatal Lung 
                        Disease In Nonsmokers.
                        ``WARNING: Quitting Smoking Now Greatly Reduces 
                        Serious Risks To Your Health.
            ``(2) Requirements for label statements.--
                    ``(A) Location.--Each label statement required by 
                subparagraph (A) of paragraph (1) shall be located on 
                the upper portion of the front panel of the cigarette 
                package (or carton) and occupy not less than 25 percent 
                of such front panel.
                    ``(B) Type and color.--With respect to each label 
                statement required by subparagraph (A) of paragraph 
                (1), the phrase `WARNING' shall appear in capital 
                letters and the label statement shall be printed in 17 
                point type with adjustments as determined appropriate 
                by the Secretary to reflect the length of the required 
                statement. All the letters in the label statement shall 
                appear in conspicuous and legible type, in contrast by 
                typography, layout, or color with all other printed 
                material on the package, and be printed in an 
                alternating black-on-white and white-on-black format as 
                determined appropriate by the Secretary.
                    ``(C) Exception.--The provisions of subparagraph 
                (A) shall not apply in the case of a flip-top cigarette 
                package (offered for sale on April 1, 1997) where the 
                front portion of the flip-top does not comprise at 
                least 25 percent of the front panel. In the case of 
                such a package, the label statement required by 
                subparagraph (A) of paragraph (1) shall occupy the 
                entire front portion of the flip top.
            ``(3) Requirements for advertising.--
                    ``(A) Location.--Each label statement required by 
                subparagraph (B) of paragraph (1) shall occupy not less 
                than 20 percent of the area of the advertisement 
                involved.
                    ``(B) Type and color.--
                            ``(i) Type.--With respect to each label 
                        statement required by subparagraph (B) of 
                        paragraph (1), the phrase `WARNING' shall 
                        appear in capital letters and the label 
                        statement shall be printed in the following 
                        types:
                                    ``(I) With respect to whole page 
                                advertisements on broadsheet 
                                newspaper--45 point type.
                                    ``(II) With respect to half page 
                                advertisements on broadsheet 
                                newspaper--39 point type.
                                    ``(III) With respect to whole page 
                                advertisements on tabloid newspaper--39 
                                point type.
                                    ``(IV) With respect to half page 
                                advertisements on tabloid newspaper--27 
                                point type.
                                    ``(V) With respect to DPS magazine 
                                advertisements--31.5 point type.
                                    ``(VI) With respect to whole page 
                                magazine advertisements--31.5 point 
                                type.
                                    ``(VII) With respect to 28cm x 3 
                                column advertisements--22.5 point type.
                                    ``(VIII) With respect to 20cm x 2 
                                column advertisements--15 point type.
                        The Secretary may revise the required type 
                        sizes as the Secretary determines appropriate 
                        within the 20 percent requirement.
                            ``(ii) Color.--All the letters in the label 
                        statement under this subparagraph shall appear 
                        in conspicuous and legible type, in contrast by 
                        typography, layout, or color with all other 
                        printed material in the advertisement, and be 
                        printed in an alternating black-on-white and 
                        white-on-black format as determined appropriate 
                        by the Secretary.
            ``(4) Rotation of label statements.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the label statements specified in 
                subparagraphs (A) and (B) of paragraph (1) shall be 
                rotated by each manufacturer or importer of cigarettes 
                quarterly in alternating sequence on packages of each 
                brand of cigarettes manufactured by the manufacturer or 
                importer and in the advertisements for each such brand 
                of cigarettes in accordance with a plan submitted by 
                the manufacturer or importer and approved by the 
                Secretary. The Secretary shall approve a plan submitted 
                by a manufacturer or importer of cigarettes which will 
                provide the rotation required by this paragraph and 
                which assures that all of the label statements required 
                by subparagraphs (A) and (B) will be displayed by the 
                manufacturer or importer at the same time.
                    ``(B) Application of other rotation requirements.--
                            ``(i) In general.--A manufacturer or 
                        importer of cigarettes may apply to the 
                        Secretary to have the rotation schedule 
                        described in clause (iii) apply with respect to 
                        a brand style of cigarettes manufactured or 
                        imported by such manufacturer or importer if--
                                    ``(I) the number of cigarettes of 
                                such brand style sold in the fiscal 
                                year of the manufacturer or importer 
                                preceding the submission of the 
                                application is less than \1/4\ of 1 
                                percent of all the cigarettes sold in 
                                the United States in such year; and
                                    ``(II) more than \1/2\ of the 
                                cigarettes manufactured or imported by 
                                such manufacturer or importer for sale 
                                in the United States are packaged into 
                                brand styles which meet the 
                                requirements of subclause (I).
                        If an application is approved by the Secretary, 
                        the rotation schedule described in clause (iii) 
                        shall apply with respect to the applicant 
                        during the 1-year period beginning on the date 
                        of the application approval.
                            ``(ii) Plan.--An applicant under clause (i) 
                        shall include in its application a plan under 
                        which the label statements specified in 
                        subparagraph (A) of paragraph (1) will be 
                        rotated by the applicant manufacturer or 
                        importer in accordance with the label rotation 
                        described in clause (iii).
                            ``(iii) Other rotation requirements.--Under 
                        the rotation schedule which the manufacturer or 
                        importer with an approved application may put 
                        into effect, each of the label statements 
                        specified in subparagraph (A) of paragraph (1) 
                        shall appear on the packages of each brand 
                        style of cigarettes with respect to which the 
                        application was approved an equal number of 
                        times within the 12-month period beginning on 
                        the date of the approval by the Secretary of 
                        the application.
            ``(5) Application of requirement.--Paragraph (1) does not 
        apply to a distributor or retailer of cigarettes who does not 
        manufacture, package, or import cigarettes for sale or 
        distribution within the United States.
            ``(6) Television and radio advertising.--It shall be 
        unlawful to advertise cigarettes and little cigars on any 
        medium of electronic communications subject to the jurisdiction 
        of the Federal Communications Commission.
    ``(b) Smokeless Tobacco Products.--
            ``(1) In general.--
                    ``(A) Packaging.--It shall be unlawful for any 
                person to manufacture, package, or import for sale or 
                distribution within the United States any smokeless 
                tobacco product the package of which fails to bear, in 
                accordance with the requirements of this subsection, 
                one of the following statements:
                        WARNING: This Product May Cause Mouth Cancer.
                        WARNING: This Product May Cause Gum Disease And 
                        Tooth Loss.
                        WARNING: This Product Is Not A Safe Alternative 
                        To Cigarettes.
                        WARNING: Smokeless Tobacco Is Addictive.
                    ``(B) Advertising.--It shall be unlawful for any 
                manufacturer or importer of smokeless tobacco products 
                to advertise or cause to be advertised within the 
                United States any smokeless tobacco product unless the 
                advertising bears, in accordance with the requirements 
                of this subsection, one of the following statements:
                        WARNING: This Product May Cause Mouth Cancer.
                        WARNING: This Product May Cause Gum Disease And 
                        Tooth Loss.
                        WARNING: This Product Is Not A Safe Alternative 
                        To Cigarettes.
                        WARNING: Smokeless Tobacco Is Addictive.
            ``(2) Requirements for label statements.--
                    ``(A) Location.--Each label statement required by 
                subparagraph (A) of paragraph (1) shall be located on 
                the principal display panel of the product and occupy 
                not less than 25 percent of such panel.
                    ``(B) Type and color.--With respect to each label 
                statement required by subparagraph (A) of paragraph 
                (1), the phrase `WARNING' shall appear in capital 
                letters and the label statement shall be printed in 17 
                point type with adjustments as determined appropriate 
                by the Secretary to reflect the length of the required 
                statement. All the letters in the label statement shall 
                appear in conspicuous and legible type in contrast by 
                typography, layout, or color with all other printed 
                material on the package and be printed in an 
                alternating black on white and white on black format as 
                determined appropriate by the Secretary.
            ``(3) Advertising and rotation.--The provisions of 
        paragraphs (3) and (4)(A) of subsection (a) shall apply to 
        advertisements for smokeless tobacco products and the rotation 
        of the statements required under paragraph (1)(A) on such 
        products.
            ``(4) Application of requirement.--Paragraph (1) does not 
        apply to a distributor or retailer of smokeless tobacco 
        products who does not manufacture, package, or import such 
        products for sale or distribution within the United States.
            ``(5) Television and radio advertising.--It shall be 
        unlawful to advertise smokeless tobacco on any medium of 
        electronic communications subject to the jurisdiction of the 
        Federal Communications Commission.
    ``(c) Additional Tobacco Product Statements.--
            ``(1) Requirement.--Each manufacturer, distributor, and 
        retailer advertising or causing to be advertised, disseminating 
        or causing to be disseminated advertising concerning, tobacco 
        products otherwise permitted under this chapter shall include, 
        in a type size and format as the Secretary may prescribe in a 
        regulation promulgated under subsection (d), the product name 
        and a statement of the general use of the product as provided 
        for in paragraph (2).
            ``(2) General use statements.--
                    ``(A) Cigarettes.--A statement of general use for 
                cigarettes or cigarette tobacco is as follows 
                (whichever is appropriate):
                `Cigarettes--A Dangerous Tobacco Product Intended For 
                Use Only By Persons 18 or Older.
                `Cigarette Tobacco--A Dangerous Tobacco Product 
                Intended For Use Only By Persons 18 or Older.
                    ``(B) Smokeless tobacco.--A statement of general 
                use for a smokeless tobacco product is as follows 
                (whichever is appropriate):
                `Loose Leaf Chewing Tobacco--A Dangerous Tobacco 
                Product Intended For Use Only By Persons 18 or Older.
                `Plug Chewing Tobacco--A Dangerous Tobacco Product 
                Intended For Use Only By Persons 18 or Older.
                `Twist Chewing Tobacco--A Dangerous Tobacco Product 
                Intended For Use Only By Persons 18 or Older.
                `Moist Snuff--A Dangerous Tobacco Product Intended For 
                Use Only By Persons 18 or Older.
                `Dry Snuff--A Dangerous Tobacco Product Intended For 
                Use Only By Persons 18 or Older.
    ``(d) Regulations.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of this title, the Secretary shall promulgate 
        such regulations as may be necessary to implement subsections 
        (a), (b), and (c).
            ``(2) Authority to revise tobacco product labeling 
        statements.--
                    ``(A) In general.--The Secretary may by informal 
                notice and comment rulemaking change the text of any of 
                the statements required under subsections (a) and (b). 
                A rule promulgated under this subparagraph shall not 
                become effective prior to the expiration of the 1-year 
                period beginning on the date on which the final rule is 
                published in the Federal Register.
                    ``(B) Limitation.--The Secretary may not promulgate 
                any rule under subparagraph (A) during the 5-year 
                period beginning on the effective date of the PAST Act 
                unless the Secretary can demonstrate extraordinary 
                circumstances.
                    ``(C) Assessments.--The Secretary shall, as 
                scientific data regarding the effectiveness of warning 
                labels in deterring youth smoking becomes available, 
                periodically (but not more frequently that once every 3 
                years) assess the efficacy of current labels and the 
                public health benefits of revising such labels.
            ``(3) Common or usual names.--The Secretary, in accordance 
        with the procedures set forth in section 902, shall promulgate 
        regulations requiring the disclosure to the public of the 
        common or usual name of each ingredient (other than tobacco, 
        water, or reconstituted tobacco sheet made wholly from tobacco) 
        contained in a tobacco product in descending order of 
        predominance by weight, except that such regulations--
                    ``(A) may provide for the disclosure of spices, 
                flavorings, and colorings without naming each spice, 
                flavoring, or coloring; and
                    ``(B) may exempt from disclosure incidental 
                additives, including processing aids and chemical 
                preservatives, that are present in a tobacco product at 
                insignificant levels that the Secretary determines do 
                not have any functional effect or health risk.
    ``(e) Exports.--Packages of cigarettes or smokeless tobacco 
products manufactured, imported, or packaged--
            ``(1) for export from the United States; or
            ``(2) for delivery to a vessel or aircraft, as supplies, 
        for consumption beyond the jurisdiction of the internal revenue 
        laws of the United States;
shall be exempt from the requirements of this chapter, but such 
exemptions shall not apply to cigarettes or smokeless tobacco products 
manufactured, imported, or packaged for sale or distribution to members 
or units of the Armed Forces of the United States located outside of 
the United States.

``SEC. 906. RESTRICTION ON MARKETING AND ADVERTISING.

    ``(a) Prohibitions on Advertising.--
            ``(1) Prohibition on outdoor advertising.--
                    ``(A) In general.--No manufacturer, distributor, or 
                retailer may use any form of outdoor tobacco product 
                advertising, including billboards, posters, placards, 
                or other fixed or movable outdoor product advertising.
                    ``(B) Stadia and arenas.--Except as otherwise 
                provided in this chapter, a manufacturer, distributor, 
                or retailer shall not advertise tobacco products in any 
                arena or stadium where athletic, musical, artistic, or 
                other social or cultural events or activities occur.
            ``(2) Prohibition on use of human images and cartoons.--No 
        manufacturer, distributor, or retailer may use a human image or 
        a cartoon character or cartoon-type character in its 
        advertising, labeling, or promotional material with respect to 
        a tobacco product.
            ``(3) Prohibition on advertising on the internet.--No 
        manufacturer, distributor, or retailer may use the Internet to 
        advertise tobacco products unless such an advertisement is 
        inaccessible in or from the United States.
            ``(4) Prohibition on point-of-sale advertising.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, no manufacturer, distributor, or 
                retailer may use point-of-sale advertising of tobacco 
                products.
                    ``(B) Permissible advertising.--
                            ``(i) In general.--Each manufacturer of 
                        tobacco products may display not more than 2 
                        separate point-of-sale advertisements in or at 
                        each location at which tobacco products are 
                        offered for sale.
                            ``(ii) Market share manufacturers.--A 
                        manufacturer with at least 25 percent of the 
                        market share of the tobacco product involved 
                        may display an additional point-of-sale 
                        advertisement in or at each location at which 
                        tobacco products are offered for sale.
                            ``(iii) Retailers.--A retailer may have not 
                        more than 1 point-of-sale advertisement 
                        relating to the retailer's own or its 
                        wholesaler's contracted retailer or private 
                        label brand of tobacco product. No manufacturer 
                        or distributor may enter into any arrangement 
                        with a retailer to limit the ability of the 
                        retailer to display any form of permissible 
                        point-of-sale advertisement or promotional 
                        material originating with another manufacturer 
                        or distributor.
                    ``(C) Limitations.--
                            ``(i) In general.--A point of sale 
                        advertisement permitted under this paragraph 
                        shall be comprised of a display area that is 
                        not larger than 576 square inches (either 
                        individually or in the aggregate) and shall 
                        consist only of black letters on a white 
                        background or other recognized typographical 
                        marks. Such advertisement shall not be attached 
                        to nor located within 2 feet of any fixture on 
                        which candy is displayed for sale.
                            ``(ii) Audio and video formats.--Audio and 
                        video advertisements permitted under subsection 
                        (c)(3) may be distributed to individuals who 
                        are 18 years of age or older at point of sale 
                        but may not be played or viewed at such point 
                        of sale.
                            ``(iii) Display fixtures.--Display fixtures 
                        in the form of signs consisting of brand name 
                        and price and not larger than 2 inches in 
                        height are permitted.
                    ``(D) Definition.--For purposes of this paragraph, 
                the term `point-of-sale advertising' means all printed 
                or graphical materials bearing the brand name (alone or 
                in conjunction with any other word), logo, motto, 
                selling message, recognizable color or pattern of 
                colors, or any other indicia of product identification 
                similar or identical to those used for tobacco products 
                which, when used for its intended purpose, can 
                reasonably be anticipated to be seen by customers at a 
                location at which tobacco products are offered for 
                sale.
    ``(b) General Restrictions.--
            ``(1) Restriction on product names.--A manufacturer shall 
        not use a trade or brand name of a nontobacco product as the 
        trade or brand name for a cigarette or smokeless tobacco 
        product, except for a tobacco product whose trade or brand name 
        was on both a tobacco product and a nontobacco product that 
        were sold in the United States on or before January 1, 1995.
            ``(2) Advertising limited to fda specified media.--
                    ``(A) In general.--A manufacturer, distributor, or 
                retailer may, in accordance with this chapter, 
                disseminate or cause to be disseminated advertising or 
                labeling which bears a tobacco product brand name 
                (alone or in conjunction with any other word) or any 
                other indicia of tobacco product identification only in 
                newspapers, in magazines, in periodicals or other 
                publications (whether periodic or limited 
                distribution), on billboards, posters and placards in 
                accordance with subsection (a)(1), in nonpoint-of-sale 
                promotional material (including direct mail), in point-
                of-sale promotional material, and in audio or video 
                formats delivered at a point-of-sale.
                    ``(B) Limitation.--A manufacturer, distributor, or 
                retailer that intends to disseminate, or to cause to be 
                disseminated, advertising or labeling for a tobacco 
                product in a medium that is not described in 
                subparagraph (A) shall notify the Commissioner not less 
                than 30 days prior to the date on which such medium is 
                to be used. Such notice shall describe the medium and 
                discuss the extent to which the advertising or labeling 
may be seen by individuals who are under 18 years of age.
            ``(3) Restriction on placement in entertainment media.--
                    ``(A) In general.--No payment shall be made by any 
                manufacturer, distributor, or retailer for the 
                placement of any tobacco product or tobacco product 
                package or advertisement--
                            ``(i) as a prop in any television program 
                        or motion picture produced for viewing by the 
                        general public; or
                            ``(ii) in a video or on a video game 
                        machine.
                    ``(B) Video game.--The term `video game' means any 
                electronic amusement device that utilizes a computer, 
                microprocessor, or similar electronic circuitry and its 
                own cathode ray tube, or is designed to be used with a 
                television set or a monitor, that interacts with the 
                user of the device.
            ``(4) Restrictions on glamorization of tobacco products.--
        No direct or indirect payment shall be made by any 
        manufacturer, distributor, or retailer to any entity for the 
        purpose of promoting the image or use of a tobacco product 
        through print or film media that appeals to individuals under 
        18 years of age or through a live performance by an 
        entertainment artist that appeals to such individuals.
    ``(c) Format and Content Requirements for Labeling and 
Advertising.--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), each manufacturer, distributor, and retailer advertising 
        or causing to be advertised, disseminating or causing to be 
        disseminated, any labeling or advertising for a tobacco product 
        shall use only black text on a white background.
            ``(2) Certain advertising excepted.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                advertising--
                            ``(i) in any facility where vending 
                        machines and self-service displays are 
                        permitted under this chapter if the advertising 
                        involved--
                                    ``(I) is not visible from outside 
                                of the facility; and
                                    ``(II) is affixed to a wall or 
                                fixture in the facility; and
                            ``(ii) that appears in any publication 
                        (whether periodic, limited, or controlled 
                        distribution) that the manufacturer, 
                        distributor, or retailer demonstrates is an 
                        adult publication.
                    ``(B) Adult publication.--For purposes of 
                subparagraph (A)(ii), the term `adult publication' 
                means a newspaper, magazine, periodical, or other 
                publication--
                            ``(i) whose readers under 18 years of age 
                        constitute 15 percent or less of the total 
                        readership as measured by competent and 
                        reliable survey evidence; or
                            ``(ii) that is read by fewer than 2,000,000 
                        individuals who are under 18 years of age as 
                        measured by competent and reliable survey 
                        evidence.
            ``(3) Audio or video formats.--Each manufacturer, 
        distributor, and retailer advertising or causing to be 
        advertised any advertising for a tobacco product in an audio or 
        video format shall comply with the following:
                    ``(A) With respect to an audio format, the 
                advertising shall be limited to words only with no 
                music or sound effects.
                    ``(B) With respect to a video format, the 
                advertising shall be limited to static black text only 
                on a white background. Any audio with the video 
                advertising shall be limited to words only with no 
                music or sound effects.
    ``(d) Ban on Nontobacco Items and Services, Contests and Games of 
Chance, and Sponsorship of Events.--
            ``(1) Ban on all nontobacco merchandise.--No manufacturer, 
        importer, distributor, or retailer shall market, license, 
        distribute, sell, or cause to be marketed, licensed, 
        distributed or sold any item (other than tobacco products) or 
        service which bears the brand name (alone or in conjunction 
        with any other word), logo, symbol, motto, selling message, 
        recognizable color or pattern of colors, or any other indicia 
        of product identification similar or identifiable to those used 
        for any brand of tobacco products.
            ``(2) Gifts, contests, and lotteries.--No manufacturer, 
        distributor, or retailer shall offer or cause to be offered to 
        any person purchasing tobacco products any gift or item (other 
        than a tobacco product) in consideration of the purchase of 
        such products, or to any person in consideration of furnishing 
        evidence, such as credits, proofs-of-purchase, or coupons, of 
        such a purchase.
            ``(3) Sponsorship.--
                    ``(A) In general.--No manufacturer, distributor, or 
                retailer shall sponsor or cause to be sponsored any 
                athletic, musical, artistic, or other social or 
                cultural event, or any entry or team in any event, in 
                which the brand name (alone or in conjunction with any 
                other word), logo, motto, selling message, recognizable 
                color or pattern of colors, or any other indicia of 
                product identification similar or identical to those 
                used for tobacco products is used.
                    ``(B) Use of corporate name.--A manufacturer, 
                distributor, or retailer may sponsor or cause to be 
                sponsored any athletic, musical, artistic, or other 
                social or cultural event in the name of the corporation 
                which manufactures the tobacco product if--
                            ``(i) both the corporate name and the 
                        corporation were registered and in use in the 
                        United States prior to January 1, 1995; and
                            ``(ii) the corporate name does not include 
                        any brand name (alone or in conjunction with 
                        any other word), logo, symbol, motto, selling 
                        message, recognizable color or pattern of 
                        colors, or any other indicia or product 
                        identification identical or similar to, or 
                        identifiable with, those used for any brand of 
                        tobacco products.

``SEC. 907. REDUCED RISK TOBACCO PRODUCTS.

    ``(a) Requirements.--
            ``(1) In general.--For purposes of this Act, the term 
        `Reduced Risk Tobacco Product' means a product that delivers 
        nicotine to the human body while simultaneously delivering 1 or 
        more other toxic substances to the human body, and which the 
        Secretary designates as a Reduced Risk Tobacco product under 
        paragraph (2).
            ``(2) Designation.--A product shall be designated by the 
        Secretary as a Reduced Risk Tobacco Product if--
                    ``(A) the Secretary finds that the product has the 
                potential to reduce harm to health caused by a tobacco 
                product, based on an application submitted by the 
                manufacturer of the product (or other responsible 
                person) that--
                            ``(i) demonstrates, on the basis of 
                        chemical analysis, that use of such product 
                        results in ingestion or inhalation of a 
                        substantially lower yield of toxic substances 
                        than use of conventional tobacco products in 
                        the same category as the proposed reduced risk 
                        product; and
                            ``(ii) demonstrates, through testing on 
                        animals and short-term human testing, that 
                        there is reason to believe that use of the 
                        product presents substantially less risk to 
                        human health than use of conventional tobacco 
                        products; and
            ``(B) the manufacturer (or other person) agrees to conduct 
        studies of the long-term health effects of such product (in 
        accordance with 1 or more protocols agreed upon between the 
        manufacturer of the product and the Secretary) and submit the 
        results of such study, together with underlying data, to the 
        Secretary.
            ``(3) Marketing requirements.--A tobacco product may be 
        marketed as a Reduced Risk Tobacco Product only if such 
        product--
            ``(A) bears a label, prescribed by the Secretary, stating 
        that the product contains toxic substances other than nicotine, 
        that such product should only be used by persons who use 
        tobacco products, and other relevant information;
            ``(B) bears a label, as prescribed by the Secretary, 
        concerning the product's contribution to reducing harm to 
        health; and
            ``(C) complies with requirements prescribed by the 
        Secretary relating to marketing and advertising of the product, 
        and other provisions of this chapter as prescribed by the 
        Secretary.
    ``(b) Revocation of Designation.--At any time after the expiration 
of the 5-year period beginning on the date on which a tobacco product 
is designated as a Reduced Risk Tobacco Product under this section, the 
Secretary may, after providing an opportunity for an informal hearing, 
revoke such designation if the Secretary determines, based on 
information not available at the time of the designation, that--
            ``(1) the finding made under subsection (a)(2)(A) is no 
        longer valid; or
            ``(2) the studies required under subsection (a)(2)(B) are 
        not conducted on a timely basis.
    ``(c) Studies.--The Secretary shall conduct and support, through 
grants and contracts, studies of the role of smoking cessation products 
and reduced risk tobacco products in reducing the burden of illness and 
death in the United States resulting from the use of tobacco products.
    ``(d) Limitation.--A tobacco product that is designated as a 
Reduced Risk Tobacco Product that is compliance with subsection (a) 
shall not be regulated as a drug or device.
    ``(e) Development of Reduced Risk Tobacco Product Technology.--
            ``(1) Notification of secretary.--The manufacturer of a 
        tobacco product shall provide written notice to the Secretary 
        upon the development or acquisition by the manufacturer of any 
        technology that would reduce the risk of such products to the 
        health of the user.
            ``(2) Determination.--Within 6 months of the date on which 
        a notice is received by the Secretary under paragraph (1), the 
        Secretary shall determine whether the technology described in 
        such notice is likely to result in tobacco products that are 
        less hazardous to the health of users.
            ``(3) Confidentiality.--The Secretary shall promulgate 
        regulations to provide a manufacturer with appropriate 
        confidentiality protections with respect to technology that is 
        the subject of a determination under paragraph (2) that is 
        likely to result in tobacco products that are less hazardous to 
        the health of users.
            ``(4) Licensing.--
                    ``(A) In general.--With respect to any technology 
                for which a notification has been provided under 
                paragraph (1), the manufacturer shall permit the use of 
                such technology by other manufacturers of tobacco 
                products to which this chapter applies if the 
                manufacturer elects not to develop and market such 
                technology.
                    ``(B) Fees.--The Secretary of Commerce shall 
                promulgate regulations to provide for the payment of a 
                commercially reasonable fee by each manufacturer that 
                uses the technology described under subparagraph (A) to 
                the manufacturer that submits the notice under 
                paragraph (1) for such technology. Such regulations 
                shall contain procedures for the resolution of fee 
                disputes between manufacturers under this subparagraph 
                through the use of expert arbitrators.
    ``(f) Requirement of Manufacture and Marketing.--
            ``(1) Purpose.--It is the purpose of this subsection to 
        provide for a mechanism to create incentives that help ensure 
        that tobacco products that are designed to be less hazardous to 
        the health of users are developed, tested, and made available 
        to consumers.
            ``(2) Determination.--Upon a determination by the Secretary 
        that the manufacture of a tobacco product that is less 
        hazardous to the health of users is technologically and 
        commercially feasible, the Secretary may, in accordance with 
        this subsection and through the issuance or amendment of a 
        health risk reduction standard under section 903--
                    ``(A) require the disclosure of the existence of 
                such technology;
                    ``(B) prohibit the use of technology that is 
                superseded by such new technology; and
                    ``(C) require that manufacturers cease 
                manufacturing and marketing tobacco products that do 
                not incorporate such technology.
    ``(g) Basis for Determination.--For purposes of subsections (e)(2) 
and (f)(2), the determination as to whether a tobacco product may be 
less hazardous to the health of users shall take into account both the 
reduced risk to the health of the user and its contribution to reducing 
addiction to tobacco products.

``SEC. 908. TOBACCO PRODUCT MARKETING RESTRICTIONS.

    ``(a) In General.--The Secretary, acting through the Office of 
Smoking and Health of the Centers for Disease Control and Prevention, 
shall by regulation implement the prohibitions described in this 
section concerning the marketing of tobacco products to minors.
    ``(b) Sales to Minors Prohibited.--No retailer may distribute a 
tobacco product to any individual who is under 18 years of age.
    ``(c) Photo Identification.--
            ``(1) Requirement.--Except as provided in paragraph (2), 
        each retailer shall verify, by means of a driver's license or 
        other form of identification issued by a government authority 
        containing the date of birth of the bearer, that no individual 
        purchasing a tobacco product is under 18 years of age.
            ``(2) Exception.--No verification under paragraph (1) is 
        required for any individual who is at least 27 years of age.
            ``(3) Location of products.--Except as provided in 
        subsection (j), a retailer shall ensure that all tobacco 
        products are located in areas where customers do not have 
        access to the products.
    ``(d) Face-to-Face Transactions.--Except as provided in subsection 
(i)(1), a retailer may sell tobacco products only in a direct, face-to-
face exchange without the assistance of any electronic or mechanical 
device.
    ``(e) Out-of-Package Distribution.--No retailer may break or 
otherwise open a tobacco product to sell or distribute to individuals 
portions of such product (including individual cigarettes or a number 
of cigarettes that is smaller than the quantity in the minimum package 
size, or any quantity of cigarette tobacco or smokeless tobacco that is 
smaller than the smallest package distributed by the retailer for 
individual consumer use).
    ``(f) Retailer Compliance With Respect to Self-Service.--Each 
retailer shall ensure that all tobacco-related self-service displays, 
advertising, labeling, and other items that are located in the 
establishment of the retailer and that do not comply with the 
requirements of this section are removed or are brought into compliance 
with the requirements of this section.
    ``(g) Minimum Cigarette Package Size.--Except as otherwise provided 
in this section, no manufacturer, distributor, or retailer may sell or 
cause to be sold, or distribute or cause to be distributed, any 
cigarette package that contains fewer than 20 cigarettes.
    ``(h) Prohibition on Sampling.--No manufacturer, distributor, or 
retailer may distribute or cause to be distributed any free samples of 
any tobacco product.
    ``(i) Prohibition on Distribution Through Self-Service Modes of 
Sale.--
            ``(1) Vending machines.--Except as provided in subsection 
        (j)(1)(B), no manufacturer, distributor, or retailer may 
        distribute or cause to be distributed any tobacco product 
        through a vending machine.
            ``(2) Other displays.--Except as provided in subsection 
        (j)(1)(C), no manufacturer, distributor, or retailer may 
        distribute or cause to be distributed any tobacco product 
        through a self-service display.
    ``(j) Permitted Self-Service Modes of Sale.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, the following methods of distributing tobacco 
        products are permitted:
                    ``(A) Mail-order sales as provided for in paragraph 
                (2), except that mail-order redemption of coupons and 
                the distribution of free samples through the mail shall 
                be prohibited.
                    ``(B) Distribution through vending machines that 
                are located in facilities where the retailer ensures 
                that no individuals under 18 years of age are present 
                or permitted to enter at any time.
            ``(2) Mail-order sales.--
                    ``(A) In general.--A manufacturer, distributor, or 
                retailer may distribute or cause to be distributed a 
                tobacco product through mail-order sales only if such 
                sales are subject to a procedure for verifying that no 
                individual purchasing such products is under 18 years 
                of age.
                    ``(B) Review by secretary.--Not later than 2 years 
                after the date of enactment of this section, the 
                Secretary shall review the verification procedures 
                implemented under subparagraph (A) to determine whether 
                individuals under 18 years of age are obtaining tobacco 
                products through the mail. If the Secretary determines 
                that a significant number of underage individuals are 
                obtaining such products through the mail, the Secretary 
                may promulgate regulations in accordance with section 
                902 to prohibit the distribution of tobacco products 
                through the mail.

``SEC. 909. TOBACCO PRODUCTS SCIENTIFIC ADVISORY COMMITTEE.

    ``(a) Establishment.--Not later than 1 year after the date of 
enactment of this chapter, the Secretary shall establish an advisory 
committee, to be known as the `Tobacco Products Scientific Advisory 
Committee', to assist the Secretary in establishing, amending, or 
revoking a regulation promulgated under section 903, 904, 905, or 907.
    ``(b) Membership.--
            ``(1) In general.--The Secretary shall appoint as members 
        of the Tobacco Products Scientific Advisory Committee--
                    ``(A) individuals with expertise in the medicine, 
                science, or technology involving the manufacture and 
                use of tobacco products, who are of appropriately 
                diversified professional backgrounds;
                    ``(B) individuals with expertise in law or ethics;
                    ``(C) a representative of tobacco product 
                manufacturers;
                    ``(D) a representative of the general public 
                selected from public health organizations; and
                    ``(E) a representative of the general public 
                selected from pro-tobacco organizations.
            ``(2) Limitation.--The Secretary may not appoint to the 
        Advisory Committee any individual who is in the regular full-
        time employ of the Federal Government. The Secretary may 
        appoint Federal officials as ex-officio members.
            ``(3) Chairperson.--The Secretary shall designate 1 of the 
        members of advisory committee to serve as chairperson of the 
        Advisory Committee.
    ``(c) Duties.--The Tobacco Products Scientific Advisory Committee 
shall--
            ``(1) assist the Secretary in establishing, amending, or 
        revoking regulations under section 903, 904, 905, or 907;
            ``(2) examine and make recommendations concerning the 
        effects of the alteration of the nicotine yield levels in 
        tobacco products;
            ``(3) examine and make recommendations concerning whether 
        there is a threshold level below which nicotine yields do not 
        produce dependence on the tobacco product involved, and, if so, 
determine what that level is; and
            ``(4) review other safety, dependence or health issues 
        relating to tobacco products as requested by the Secretary.

``SEC. 910. REPORTS.

    ``Not later than 18 months after the date of enactment of this 
chapter, and biennially thereafter, the Secretary shall prepare and 
submit to Congress a report containing--
            ``(1) a description of the current sales, advertising, and 
        marketing practices associated with tobacco products;
            ``(2) a description of the use patterns of tobacco 
        products, including a report on use by individuals under 18 
        years of age;
            ``(3) a description of the effects of health promotion and 
        disease prevention efforts related to the use of tobacco 
        products;
            ``(4) an evaluation of the health promotion and disease 
        prevention efforts relating to tobacco products and the 
        identification of areas appropriate for further research; and
            ``(5) such recommendations for legislation and 
        administrative action relating to tobacco products as the 
        Secretary considers appropriate.

``SEC. 911. JUDICIAL REVIEW.

    ``(a) Application of Section.--
            ``(1) In general.--Not later than 60 days after the 
        effective date of any regulation under this chapter 
        establishing, amending, or revoking a health risk reduction 
        standard for a tobacco product, any person adversely affected 
        by such regulation may file a petition with the United States 
        Court of Appeals for the District of Columbia or for the 
        circuit wherein such person resides or has its principal place 
        of business for judicial review of such regulation. A copy of 
        the petition shall be transmitted by the clerk of the court to 
        the Secretary or other officer designated by him for that 
        purpose.
            ``(2) Record of proceeding.--The Secretary shall file in 
        the court under paragraph (1) the record of the proceedings on 
        which the Secretary based the regulation involved as provided 
        for in section 2112 of title 28, United States Code.
            ``(3) Definition.--For purposes of this section, the term 
        `record' means all notices and other matter published in the 
        Federal Register with respect to the regulation reviewed, all 
        information submitted to the Secretary with respect to such 
        regulation, proceedings of any panel or advisory committee with 
        respect to such regulation, any hearing held with respect to 
        such regulation, and any other information identified by the 
        Secretary, in the administrative proceeding held with respect 
        to such regulation, as being relevant to such regulation.
    ``(b) Additional Data, Views, and Arguments.--If the petitioner 
applies to the court under this section for leave to adduce additional 
data, views, or arguments respecting the regulation being reviewed and 
shows to the satisfaction of the court that such additional data, 
views, or arguments are material and that there were reasonable grounds 
for the petitioner's failure to adduce such data, views, or arguments 
in the proceedings before the Secretary, the court may order the 
Secretary to provide additional opportunity for the oral presentation 
of data, views, or arguments and for written submissions. The Secretary 
may modify such findings, or make new findings by reason of the 
additional data, views, or arguments so taken and shall file with the 
court such modified or new findings, and the recommendations of the 
Secretary, if any, for the modification or setting aside of the 
regulation or order being reviewed, with the return of such additional 
data, views, or arguments.
    ``(c) Standard for Review.--Upon the filing of the petition under 
subsection (a) judicial review of a regulation, the court shall have 
jurisdiction to review the regulation in accordance with chapter 7 of 
title 5, United States Code, and to grant appropriate relief, including 
interim relief, as provided for in such chapter. A regulation 
promulgated under this chapter shall not be affirmed if it is found to 
be arbitrary and capricious.
    ``(d) Finality of Judgments.--The judgment of the court affirming 
or setting aside, in whole or in part, any regulation under this 
section shall be final, subject to review by the Supreme Court of the 
United States upon certiorari or certification, as provided for in 
section 1254 of title 28, United States Code.
    ``(e) Other Remedies.--The remedies provided for in this section 
shall be in addition to and not in lieu of any other remedies provided 
for by law.
    ``(f) Statement of Reasons.--To facilitate judicial review under 
this section or under any other provision of law of a regulation issued 
under this chapter, each such regulation shall contain a statement of 
the reasons for its issuance and the basis, in the record of the 
proceedings held in connection with its issuance, for its issuance.

``SEC. 912. AUTHORITY TO ASSESS AND USE FEES.

    ``(a) In General.--The Secretary shall, not later than 60 days 
after the date of enactment of this chapter, annually assess and 
collect fees for submissions made under sections 902, 903, and 907 in 
accordance with this section to be used as the sole source of funding 
with respect to the regulation and control of tobacco products under 
chapter 9 this Act.
    ``(b) Tobacco Product Fee.--The Secretary shall set the amount of 
the fees under subsection (a) for a fiscal year to equal $100,000,000.
    ``(c) Payment Schedule.--The Secretary shall promulgate regulations 
to implement procedures for the assessment and collection of fees under 
this section.
    ``(d) Collection of Unpaid Fees.--In any case where the Secretary 
does not receive payment of a fee assessed under subsection (b) within 
30 days after it is due, such fee shall be treated as a claim of the 
United States Government subject to subchapter II of chapter 37 of 
title 31, United States Code.
    ``(e) Apportionment of Fees.--The Secretary shall, not later than 
60 days after the enactment of this chapter, issue regulations 
apportioning fees under subsection (a) among submissions required under 
sections 902, 903, and 907.

``SEC. 913. PRESERVATION OF STATE AND LOCAL AUTHORITY.

    ``(a) Additional Requirements.--
            ``(1) In general.--Except as provided in paragraph (3), 
        nothing in this Act shall be construed as prohibiting a State 
        or political subdivision thereof from adopting or enforcing a 
        requirement applicable to a tobacco product that is in addition 
        to, or more stringent than, requirements established under this 
        Act.
            ``(2) Application of state law.--In the case of a 
        requirement of a State or political subdivision thereof that is 
        more stringent than a requirement established under this Act, 
        the requirement of the State or political subdivision shall 
        apply.
            ``(3) Exception.--This subsection shall not apply to 
        requirements under sections 902, 903, 904, 905, 906(a)(1)-(3), 
        906(b)-(d), and 907.
    ``(b) Rule of Construction Regarding Product Liability.--No 
provision of this Act relating to a tobacco product shall be construed 
to modify or otherwise affect any action or the liability of any person 
under the product liability law of any State.''.

SEC. 102. TECHNICAL PROVISIONS.

    (a) Application of Federal Cigarette Labeling and Advertising 
Act.--The provisions of the Federal Cigarette Labeling and Advertising 
Act (15 U.S.C. 1331 et seq.) that apply to cigarettes shall be 
superseded by the provisions of this title (and the amendments made by 
this title).
    (b) Repeal.--The Comprehensive Smokeless Tobacco Health Education 
Act of 1986 (15 U.S.C. 4401 et seq.) is repealed.

SEC. 103. FEDERAL LICENSING OF MILITARY AND OTHER ENTITIES.

    (a) In General.--The Secretary, in consultation with the Secretary 
of Defense, Secretary of State, and other appropriate Federal 
officials, shall establish and implement a Federal tobacco licensing 
program to be applied to entities that sell or distribute tobacco 
products--
            (1) on any military installation (as defined in section 
        2801(c)(2) of title X, United States Code);
            (2) in any United States embassy;
            (3) in any facility owned and operated by the Federal 
        Government either in the United States or in a foreign country;
            (4) in any duty-free shop located within the United States; 
        or
            (5) through any other Federal entity or on any other 
        Federal property as determined appropriate by the Secretary.
    (b) Requirements of Program.--The program established under 
subsection (a) shall apply requirements (including those for penalties, 
suspensions, and revocations) similar to those required to be 
implemented by States under this title (and the amendments made by this 
title).
    (c) Indian Tribes and Tribal Lands.--For purposes of applying and 
enforcing the provisions of this title (and the amendments made by this 
title) to entities that sell or otherwise distribute tobacco products 
on Indian reservations (as defined in section 403(9) of the Indian 
Child Protection and Family Violence Prevention Act (25 U.S.C. 
3202(9))), an Indian tribe or tribal organization shall be treated as a 
State.

           TITLE II--NATIONAL EFFORTS TO REDUCE YOUTH SMOKING

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Tobacco Use by Minors Prevention 
Act''.

SEC. 202. AMENDMENT TO PUBLIC HEALTH SERVICE ACT

    The Public Health Service Act (42 U.S.C. 201 et seq.) is amended by 
adding at the end the following:

        ``TITLE XXVIII--NATIONAL EFFORTS TO REDUCE YOUTH SMOKING

``SEC. 2801. DEFINITIONS.

    ``For purposes of this title, the definitions contained in section 
900 of the Food, Drug and Cosmetic Act shall apply.

  ``Subtitle A--Required Reduction in Underage Use of Tobacco Products

``SEC. 2811. PURPOSE.

    ``It is the purpose of this title to encourage the achievement of 
dramatic and immediate reductions in the number of underage consumers 
of tobacco products through the imposition of substantial financial 
surcharges on participating manufacturers if certain underage tobacco-
use reduction targets are not met.

``SEC. 2812. DETERMINATION OF UNDERAGE USE BASE PERCENTAGES.

    ``(a) Cigarettes.--For purposes of this section, the underage use 
base percentage for cigarettes shall be a percentage determined by the 
Secretary, weighted by the relative population of the age groups 
involved as determined using data compiled in 1995 by the Bureau of the 
Census, based on--
            ``(1) the average of the percentages of 12th graders 
        (individuals who are 16 or 17 years of age) who used cigarette 
        products on a daily basis for each of the calendar years 1986 
        through 1996;
            ``(2) the average of the percentages of 10th graders 
        (individuals who are 14 or 15 years of age) who used cigarette 
        products on a daily basis for each of the calendar years 1991 
        through 1996; and
            ``(3) the average of the percentages of 8th graders 
        (individuals who are 13 years of age) who used cigarette 
        products on a daily basis for each of the calendar years 1991 
        through 1996.
    ``(b) Smokeless Tobacco.--For purposes of this section, the 
underage use base percentage for smokeless tobacco products shall be a 
percentage determined by the Secretary, weighted by the relative 
population of the age groups involved as determined using data compiled 
in 1995 by the Bureau of the Census, based on--
            ``(1) the average of the percentages of 12th graders 
        (individuals who are 16 or 17 years of age) who used smokeless 
        tobacco products on a daily basis in 1996;
            ``(2) the average of the percentages of 10th graders 
        (individuals who are 14 or 15 years of age) who used smokeless 
        tobacco products on a daily basis in 1996; and
            ``(3) the average of the percentages of 8th graders 
        (individuals who are 13 years of age) who used smokeless 
        tobacco products on a daily basis in 1996.
    ``(c) Use of Certain Data or Methodology.--For purposes of 
determining the percentages under paragraphs (1) through (3) of 
subsections (a) and (b), the Secretary shall use the data contained in 
the National High School Drug Use Survey entitled Monitoring the Future 
by the University of Michigan or such other comparable index, as 
determined appropriate by the Secretary after notice and an opportunity 
for a hearing, that utilizes methodology identical to that used by the 
University of Michigan in such survey.

``SEC. 2813. ANNUAL DAILY INCIDENCE OF UNDERAGE USE OF TOBACCO 
              PRODUCTS.

    ``(a) Annual Determination.--Not later than the expiration of the 
5-year period beginning on the date of enactment of this Act, and 
annually thereafter, the Secretary shall determine the average annual 
incidence of the daily use of tobacco products by individuals who are 
under 18 years of age.
    ``(b) Cigarettes.--With respect to cigarette products, a 
determination under subsection (a) for a year shall be based on the 
percentage, as weighted by the relative population of the age groups 
involved as determined using data compiled in 1995 by the Bureau of the 
Census, of--
            ``(1) 12th graders (individuals who are 16 or 17 years of 
        age) who used cigarette products on a daily basis during the 
        year involved;
            ``(2) 10th graders (individuals who are 14 or 15 years of 
        age) who used cigarette products on a daily basis during the 
        year involved; and
            ``(3) 8th graders (individuals who are 13 years of age) who 
        used cigarette products on a daily basis during the year 
        involved.
    ``(c) Smokeless Tobacco.--With respect to smokeless tobacco 
products, a determination under subsection (a) for a year shall be 
based on the percentage, as weighted by the relative population of the 
age groups involved as determined using data compiled in 1995 by the 
Bureau of the Census, of--
            ``(1) 12th graders (individuals who are 16 or 17 years of 
        age) who used smokeless tobacco products on a daily basis 
        during the year involved;
            ``(2) 10th graders (individuals who are 14 or 15 years of 
        age) who used smokeless tobacco products on a daily basis 
        during the year involved; and
            ``(3) 8th graders (individuals who are 13 years of age) who 
        used cigarette smokeless tobacco on a daily basis during the 
        year involved.
    ``(d) Use of Certain Data or Methodology.--
            ``(1) In general.--For purposes of determining the 
        percentages under paragraphs (1) through (3) of subsections (b) 
        and (c), the Secretary shall use the data contained in the 
        National High School Drug Use Survey entitled Monitoring the 
        Future by the University of Michigan (if such survey is still 
        being undertaken) or such other comparable index, as determined 
appropriate by the Secretary after notice and an opportunity for a 
hearing, that utilizes methodology identical to that used by the 
University of Michigan in such survey.
            ``(2) Alteration of methodology.--If the Secretary 
        determines that the methodology used by the University of 
        Michigan in the survey referred to in paragraph (1) has been 
        altered in a material manner from the methodology used during 
        the period from 1986 to 1996 (including by altering States or 
        regions on which the survey is based), the Secretary, after 
        notice and an opportunity for a hearing, shall use percentages 
        based on an index developed by the Secretary that utilizes 
        methodology identical to that used by the University of 
        Michigan in such survey.

``SEC. 2814. REQUIRED REDUCTION IN UNDERAGE TOBACCO USE.

    ``(a) In General.--For purposes of assessing surcharges under 
section 405, the Secretary shall determine whether the required 
percentage reduction in the underage use of tobacco products for a year 
(based on the national goals described in section 4 of the PAST Act) 
has been achieved for the year involved. Such determination shall be 
based on--
            ``(1) with respect to cigarette products, the average 
        annual incidence of the daily use of tobacco products by 
        individuals who are under 18 years of age for the year involved 
        (as determined under section 403(b)) as compared to the 
        underage use base percentage for cigarette products (as 
        determined under section 402(a)); and
            ``(2) with respect to smokeless tobacco products, the 
        average annual incidence of the daily use of smokeless tobacco 
        products by individuals who are under 18 years of age for the 
        year involved (as determined under section 403(c)) as compared 
        to the underage use base percentage for smokeless tobacco 
        products (as determined under section 402(b)).
    ``(b) Percentage Reduction in Underage Use of Tobacco Products.--
For purposes of subsection (a), the required percentage reduction in 
the underage use of tobacco products with respect to each tobacco 
product shall be determined based on the national goals for the 
reduction in underage tobacco use under section 4.

``SEC. 2815. APPLICATION OF SURCHARGES.

    ``(a) In General.--If the Secretary determines that the percentage 
reduction in the underage use of tobacco products for a year has not 
been achieved as required under section 2814, the Secretary shall 
impose a surcharge on the participating manufacturers of the tobacco 
products involved.
    ``(b) Amount of Surcharge.--
            ``(1) In general.--
                    ``(A) Cigarettes.--With respect to cigarettes, the 
                amount of any surcharge to be imposed under this 
                section for a calendar year shall be equal to the 
                product of--
                            ``(i) $80,000,000, and the number of 
                        applicable surcharge percentage points as 
                        determined under subsection (c) up to 5 
                        percentage points;
                            ``(ii) $400,000,000, and the number of 
                        applicable surcharge percentage points as 
                        determined under subsection (c), if such 
                        percentage points are greater than 5 but less 
                        than 11 percentage points; and
                            ``(iii) $500,000,000, and the number of 
                        applicable surcharge percentage points as 
                        determined under subsection (c), if such 
                        percentage points are 11 or more percentage 
                        points; and
                    ``(B) Smokeless tobacco.--With respect to smokeless 
                tobacco, the amount of any surcharge to be imposed 
                under this section for a calendar year shall be equal 
                to the product of--
                            ``(i) $15,000,000, and the number of 
                        applicable surcharge percentage points as 
                        determined under subsection (c) up to 5 
                        percentage points;
                            ``(ii) $30,000,000, and the number of 
                        applicable surcharge percentage points as 
                        determined under subsection (c), if such 
                        percentage points are greater than 5 but less 
                        than 11 percentage points; and
                            ``(iii) $45,000,000, and the number of 
                        applicable surcharge percentage points as 
                        determined under subsection (c), if such 
                        percentage points are 11 or more percentage 
                        points.
            ``(2) Adjustments.--The amount applicable under paragraph 
        (1) shall be annually adjusted by the Secretary based on with 
        respect to subparagraph (A) of such paragraph--
                    ``(A) the proportional percentage increase or 
                decrease, as compared to calendar year 1995, in the 
                population of individuals residing in the United States 
                who are at least 13 years of age but less than 18 years 
                of age;
                    ``(B) the proportional percentage increase or 
                decrease, as compared to calendar year 1996, in the 
                average profit per unit (measured in cents and weighted 
                by annual sales) earned by participating manufacturers 
                for the tobacco product involved (as determined by the 
                Secretary through a contract with a nationally 
                recognized accounting firm having no connection to such 
                manufacturers).
    ``(c) Determination of Applicable Surcharge Percentage Points.--
            ``(1) In general.--With respect to a calendar year, the 
        applicable surcharge percentage points shall be equal to the 
        percentage point difference between--
                    ``(A) the required incidence goal in the underage 
                use of the tobacco product involved for the year (based 
                on the national goals described in section 4 of the 
                PAST Act); and
                    ``(B) the number of percentage points by which the 
                average annual incidence of the daily use of the 
                tobacco products involved by individuals who are under 
                18 years of age for the year (as determined under 
                section 2813) is less than the underage use base 
                percentage for such products (as determined under 
                section 2812).
            ``(2) Adjustment.--If for any calendar year the Secretary 
        determines that the average annual incidence of the daily use 
        of the tobacco products involved by individuals who are under 
        18 years of age (as determined under section 2813) is greater 
        than the underage use base percentage for such products (as 
        determined under section 2812), the applicable surcharge 
        percentage point shall be equal to--
                    ``(A) the percentage point amount determined under 
                paragraph (1)(A); and
                    ``(B) the number of percentage points by which the 
                average annual incidence of the daily use of the 
                tobacco products involved by individuals who are under 
                18 years of age (as determined under section 2813) is 
                greater than the underage use base percentage for such 
                products (as determined under section 2812).
            ``(3) Type of product.--Separate determinations shall be 
        made under this section for cigarette products and smokeless 
        tobacco products.
    ``(d) Joint and Several Obligation.--Any surcharge imposed under 
this section with respect to a tobacco product (cigarette products or 
smokeless tobacco products) shall be the joint and several obligation 
of all participating manufacturers of such product as allocated by the 
market share of each such manufacturer with respect to such product. 
The market share of each manufacturer for each such product shall be 
based on the market share of such product for the year preceding the 
year for which the determination is being made.
    ``(e) Assessment.--Not later than May 1 of each year in which a 
surcharge will be imposed under this section, the Secretary shall 
assess, pursuant to subsection (d), to each participating manufacturer 
the amount for which such manufacturer is obligated. Not later than 
July 1 of any year in which a manufacturer receives an assessment under 
this section, the manufacturer shall pay such assessment in full or be 
subject to such interest on such amount as the Secretary may by 
regulation prescribe.
    ``(f) Use of Amounts.--Amounts received under this section shall be 
used to further the purposes of this title.
    ``(g) Prohibition.--No stay or other injunctive relief may be 
granted by the Secretary or any court that has the effect of enjoining 
the imposition and collection of the surcharges to be applied under 
this section.

``SEC. 2816. ABATEMENT PROCEDURES.

    ``(a) Petitions.--Upon payment by a participating manufacturer of 
the amount assessed to the manufacturer under section 2815(f), the 
manufacturer may submit a petition to the Secretary for an abatement of 
the assessment. A notice of such abatement petition shall be submitted 
to the attorney general of each State.
    ``(b) Hearing.--The Secretary shall provide for the conduct of a 
hearing on an abatement petition received under subsection (a) pursuant 
to the procedures described in sections 554, 556, and 557 of title 5, 
United States Code. The attorney general of any State shall be 
permitted to be heard at any hearing conducted under this subsection.
    ``(c) Burden.--The burden at any hearing under subsection (b) shall 
be on the participating manufacturer to prove, by a preponderance of 
the evidence, that the manufacturer should be granted the abatement.
    ``(d) Basis of Decision.--Any decision regarding a petition for an 
abatement under this section shall be based on a determination as to 
whether--
            ``(1) the participating manufacturer has acted in good 
        faith and in full compliance with this title and any 
        regulations or State or local laws promulgated in furtherance 
        of this title;
            ``(2) the participating manufacturer has pursued all 
        reasonably available measures to attain the reductions;
            ``(3) there is any evidence of any direct or indirect 
        action by the participating manufacturer to undermine the 
        achievement of the reductions required under section 2814 or to 
        undermine any other provision of this title; and
            ``(4) the participating manufacturer has taken (or failed 
        to take) any other action as determined appropriate by the 
        Secretary.
    ``(e) Amount.--Upon a determination granting an abatement under 
this section, the Secretary shall order the abatement of not more than 
75 percent of the amount paid by the participating manufacturer (as 
determined by the Secretary), together with interest that may have 
accrued on such amount during the period between the date on which 
payment by the manufacturer was made and the date on which the 
abatement order was granted. Such interest shall be equal to that 
provided for the average 52-week Treasury Bill during the period 
involved.
    ``(f) Aggrieved Parties.--Any participating manufacturer or 
attorney general of any State that is aggrieved by an abatement that is 
granted under this section may seek judicial review of the abatement 
decision within 30 days of the date of such decision in the Court of 
Appeals for the District of Columbia Circuit. Review in such cases 
shall be subject to the procedures described in sections 701 through 
706 of title 5, United States Code.
    ``(g) Prohibition.--A participating manufacturer may not file a 
petition under subsection (a) until such time as the manufacturer has 
fully paid the Secretary the amount assessed to the manufacturer under 
section 405(f).

``SEC. 2817. INCENTIVE FOR EXCEEDING REDUCTION GOALS.

    ``If the Secretary determines that the percentage reduction in the 
underage use of tobacco products for a year exceeds 60 percent for 
cigarettes and 45 percent for smokeless tobacco products for a year as 
required under section 2814, the Secretary shall adjust the amount of 
the fee that a participating manufacturer shall be required to pay for 
such year into the Tobacco Settlement Trust Fund.

        ``Subtitle B--Restrictions on Access to Tobacco Products

``SEC. 2821. MINORS' ACCESS TO TOBACCO PRODUCTS.

    ``(a) In General.--To be eligible to receive funds under this title 
a State shall have in effect a law that--
            ``(1) provides that no retailer may sell or otherwise 
        distribute a tobacco product within the State to any individual 
        who is under 18 years of age; and
            ``(2) ensures compliance with the requirement of paragraph 
        (1) through the provisions of this title and through any other 
        measures determined appropriate by the State.
    ``(b) Compliance.--A State shall be considered to be in compliance 
with the requirements of subsection (a) if the State can demonstrate to 
the Secretary that fewer than 10 percent of all individuals under 18 
years of age who attempt to purchase tobacco products in the State are 
successful in such purchase.

``SEC. 2822. STATE LAWS REGARDING SALE OF TOBACCO PRODUCTS TO 
              INDIVIDUALS UNDER THE AGE OF 18.

    ``(a) Eligibility.--
            ``(1) In general.--Subject to paragraph (2), for fiscal 
        year 2000 and each subsequent fiscal year a State shall not be 
        eligible for payments under section 2824 if that State does not 
        have in effect a State law with the provisions contained in the 
        model State law described in section 2823.
            ``(2) Delayed applicability for certain states.--In the 
        case of a State whose legislature does not convene a regular 
        session in fiscal year 2000, the requirement described in 
        paragraph (1) shall apply only for fiscal year 2001 and 
        subsequent fiscal years.
    ``(b) Enforcement.--For the first applicable fiscal year and for 
each subsequent fiscal year, a State shall--
            ``(1) certify to the Secretary that such State has 
        designated a State agency with law enforcement or regulatory 
        authority to enforce the State law described in subsection 
        (a)(1);
            ``(2) certify to the Secretary that the enforcement of such 
        law is treated as a priority by the State and the agency 
        designated under paragraph (1);
            ``(3) conduct random, unannounced inspections in a manner 
        that will--
                    ``(A) provide statistically significant information 
                concerning the State's level of compliance with the 
                requirements of section 2821; and
                    ``(B) ensure compliance with the State law enacted 
                in accordance with subsection (a)(1);
            ``(4) annually submit to the Secretary a report that--
                    ``(A) describes the activities carried out by the 
                State to enforce such law during the fiscal year 
                preceding the fiscal year for which the State is 
                seeking the grant;
                    ``(B) describes the steps taken by the State to 
                ensure that enforcement of such law was treated as a 
                priority by State and local law enforcement or 
                regulatory authorities;
                    ``(C) describes the level of compliance among 
                tobacco product licensees with the provisions of this 
                subtitle;
                    ``(D) describes the extent of success the State has 
                achieved in reducing the availability of tobacco 
                products to individuals under the age of 18, including 
                the results of the inspections conducted under 
                paragraph (3);
                    ``(E) describes the strategies to be utilized by 
                the State for enforcing such law during the fiscal year 
                for which the grant is sought;
                    ``(F) describes, for the preceding fiscal year, the 
                percentage of the attempts by individuals under 18 
                years of age to purchase tobacco products in the State 
                that were unsuccessful; and
                    ``(G) includes any other information required by 
                the Secretary.
    ``(c) Funding.--The law specified in subsection (a)(1) may be 
administered and enforced by a State using--
            ``(1) funds received by the State under section 203;
            ``(2) any fees collected for licenses issued pursuant to 
        the law described in subsection (a)(1);
            ``(3) any fines or penalties assessed for violations of the 
        law specified in subsection (a)(1); or
            ``(4) any other funding source that the legislature of the 
        State may prescribe by statute.
    ``(d) Noncompliance of State.--
            ``(1) In general.--The Secretary, acting through the 
        Director of the Office on Smoking and Health of the Centers for 
        Disease Control and Prevention, shall make a determination 
        whether the State has maintained compliance with the provisions 
        of subsections (a) and (b) and section 2821. If, after notice 
        to the State and an opportunity for a hearing, the Secretary 
        determines that the State is not in compliance with such 
        provisions, the Secretary shall reduce the amount of the State 
        payment under section 2824 for the fiscal year involved by an 
        amount equal to--
                    ``(A) in the case of the first applicable fiscal 
                year, 10 percent of the amount determined under section 
                2824;
                    ``(B) in the case of the first fiscal year 
                following such applicable fiscal year, 20 percent of 
                the amount determined under such sections for the State 
                for the fiscal year; and
                    ``(C) in the case of the second such fiscal year, 
                30 percent of the amount determined under such sections 
                for the State for the fiscal year.
            ``(2) Eligibility for payments.--If, with respect to the 
        third fiscal year following the applicable year described in 
        paragraph (1)(A), or any subsequent fiscal year, the Secretary 
        determines under paragraph (1) that the State is not in 
        compliance with the provisions of subsections (a) and (b) and 
        section 2821, the State shall not be eligible for payments 
        under section 2824.
    ``(e) Action by Secretary.--If the Secretary determines that a 
State is not eligible for payments under section 2824, the Secretary, 
in consultation with the Office on Smoking and Health, shall take such 
actions as may be necessary to ensure compliance with this subtitle in 
the State.
    ``(f) Definition.--For purposes of this section, the term `first 
applicable fiscal year' means--
            ``(1) fiscal year 2001, in the case of any State described 
        in subsection (a)(2); and
            ``(2) fiscal year 2000, in the case of any other State.

``SEC. 2823. MODEL STATE LAW.

    ``The model State law described in this section with respect to a 
State is the following:

```SECTION 1. ESTABLISHMENT OF PROGRAM.

    ```There is established within the State a program under which a 
person is required to obtain a State or local license (referred to in 
this Act as the ``licensee'') to sell or otherwise distribute tobacco 
products directly to consumers.

```SEC. 2. PROHIBITION ON SALE OR DISTRIBUTION OF TOBACCO PRODUCTS TO 
              MINORS.

    ```No person (including a licensee) may sell or otherwise 
distribute a tobacco product to an individual who is under 18 years of 
age.

```SEC. 3. REQUIREMENTS FOR DISTRIBUTION.

    ```(a) In General.--No person shall sell or otherwise distribute 
tobacco products directly to consumers unless such person has in effect 
a tobacco license issued or renewed in accordance with the laws of the 
State in which the products are to be sold or distributed.
    ```(b) Photo Identification.--
            ```(1) Requirement.--Except as provided in paragraph (2), 
        each licensee shall verify, by means of a driver's license or 
        other form of identification issued by a government authority 
        containing a photograph and the date of birth of the bearer, 
        that no individual purchasing a tobacco product is under 18 
        years of age.
            ```(2) Exception.--No verification under paragraph (1) is 
        required for any individual who is at least 27 years of age.
    ```(c) Location of Products.--A licensee shall ensure that all 
tobacco products are located in areas where customers do not have 
access to the products.
    ```(d) Face-to-Face Transactions.--A licensee may sell tobacco 
products only in a direct, face-to-face exchange without the assistance 
of any electronic or mechanical device.
    ```(e) Out-of-Package Distribution.--No licensee may break or 
otherwise open a tobacco product to sell or distribute to individuals 
portions of such product (including individual cigarettes or a number 
of cigarettes that is smaller than the quantity in the minimum package 
size, or any quantity of cigarette tobacco or smokeless tobacco that is 
smaller than the smallest package distributed by the licensee for 
individual consumer use).
    ```(f) Licensee Compliance With Respect to Self-Service.--Each 
licensee shall ensure that all tobacco-related self-service displays, 
advertising, labeling, and other items that are located in the 
establishment of the licensee and that do not comply with the 
requirements of this section are removed or are brought into compliance 
with the requirements of this section.
    ```(g) Minimum Cigarette Package Size.--Except as otherwise 
provided in this section, no manufacturer, distributor, or licensee may 
sell or cause to be sold, or distribute or cause to be distributed, any 
cigarette package that contains fewer than 20 cigarettes.
    ```(h) Prohibition on Sampling.--No manufacturer, distributor, or 
licensee may distribute or cause to be distributed any free samples of 
any tobacco product.

```SEC. 4. LICENSING REQUIREMENTS.

    ```(a) Licensure and Notice.--
            ```(1) Licensure.--Every person engaged in the sale or 
        distribution of tobacco products directly to consumers shall 
        obtain a license that is issued by the State. A separate 
        license shall be required for each place of business where 
        tobacco products are distributed or sold at retail.
            ```(2) Notice.--The State shall provide notice to every 
        person who is engaged in the distribution at retail of tobacco 
        products of the licensing requirements of paragraph (1) and of 
        the date by which such person shall be required to obtain such 
        a license in order to distribute such products.
    ```(b) Fee.--Each person that desires to obtain a license under 
subsection (a) shall be assessed an annual licensing fee in an amount 
determined appropriate by the State. Such fees shall be used to 
administer the provisions of this Act with respect to the issuing and 
renewing of licenses.
    ```(c) Application.--
            ```(1) In general.--To be eligible to receive a license (or 
        the renewal of a license) under this section, a person shall 
        prepare and submit to the State an application, in such form as 
        may be required by the State, that shall contain--
                    ```(A) the name under which the applicant transacts 
                or intends to transact business;
                    ```(B) the location of the place of business for 
                which the license is to be issued;
                    ```(C) the street address to which all notices 
                relevant to the license are to be sent; and
                    ```(D) any other information determined appropriate 
                by the State.
            ```(2) Action by state.--
                    ```(A) In general.--Not later than 30 days after 
                the date on which a completed application (and 
                licensing fee) under paragraph (1) is received, the 
                State shall approve or deny the application.
                    ```(B) Finding by state.--The State shall deny an 
                application under paragraph (1) if the State determines 
                that the applicant has failed to comply with the 
                requirements of this Act.
            ```(3) Scope and renewal.--A license under this section 
        shall be valid for a period of time determined appropriate by 
        the State and shall be renewed upon proper application except 
        as otherwise provided in this section.

```SEC. 5. PENALTIES FOR LICENSEES AND EMPLOYEES FOR SALE OR 
              DISTRIBUTION IN VIOLATION OF LAW.

    ```(a) Criminal Penalties Applicable to Unlicensed Sellers.--The 
owner of any retail establishment that sells or otherwise distributes 
tobacco products to a consumer in the State without a tobacco license 
shall be subject to a fine of not less than $500 per outlet, or 
imprisonment of not less than 30 days, or both.
    ```(b) Civil Penalties Applicable to Licensed Persons.--
            ```(1) In general.--The State may impose civil penalties on 
        any person that has sold or otherwise distributed tobacco 
        products in violation of the tobacco license of the person or 
        in violation of this Act.
            ```(2) Limitations.--The civil penalties imposed under 
        paragraph (1), subject to the provisions of subparagraph (d), 
        shall not be less than the following:
                    ```(A) For the first offense within any 2-year 
                period, $100.
                    ```(B) For a second offense within any 2-year 
                period, $250.
                    ```(C) For a third offense within any 2-year 
                period, $250, and a 3-day suspension of the tobacco 
                license.
                    ```(D) For a fourth offense within any 2-year 
                period, $500 and a 7-day suspension of the tobacco 
                license.
                    ```(E) For a fifth offense within any 2-year 
                period, $500, and a 30-day suspension of the tobacco 
                license.
                    ```(F) For a sixth offense within any 2-year 
                period, $10,000, or a 1-year suspension of the tobacco 
                license, or both.
                    ```(G) For a seventh and any subsequent offense 
                within any 2-year period, $10,000, or a 3-year 
                revocation of the tobacco license.
                    ```(H) For a tenth offense within any 2-year 
                period, the mandatory revocation of the tobacco license 
                with no possibility of reinstatement for a period of 5 
                years.
            ```(3) Defenses.--It shall be a consideration to a charge 
        brought under paragraph (1) that the defendant--
                    ```(A) relied upon proof of age that appeared on 
                its face to be valid; and
                    ```(B) had complied with the requirements of 
                section 9.
            ```(4) Other violations.--No civil penalties shall be 
        imposed under this subsection upon a licensee with respect to a 
        violation, by an employee of the licensee, that occurred at a 
        place of business of the employer subsequent to the occurrence 
        of a prior violation by that same employee unless the licensee 
        has received notice of such prior violation in writing, served 
        personally or by registered mail at the address to which all 
        notices relevant to the license are to be sent.
    ```(c) Civil Penalties Applicable to Employees of Licensed 
Persons.--
            ```(1) In general.--The State may impose civil penalties on 
        any employee of a person with a tobacco license who has sold or 
        otherwise distributed tobacco products in violation of this 
        Act.
            ```(2) Limitations.--The civil penalties imposed under 
        paragraph (1) shall not be less than the following:
                    ```(A) For the first offense within any 2-year 
                period, $25.
                    ```(B) For a second offense within any 2-year 
                period, $75.
                    ```(C) For a third and any subsequent offense 
                within any 2-year period, $150.
            ```(3) Defenses.--It shall be a defense to a charge brought 
        under paragraph (1) that the dependent relied upon proof of age 
        that appeared on its face to be valid.
    ```(d) Suspension or Revocation of License.--
            ```(1) Notice.--Upon a finding that a violation of section 
        3(b)(1) has occurred for which the State may suspend or revoke 
        the tobacco license involved the State shall, prior to any such 
        suspension or revocation, notify the licensee in writing, 
        personally or by registered mail, at the address to which all 
        notices are to be sent that the State is considering such 
        suspension or revocation.
            ```(2) Opportunity to be heard.--Within 30 days of the date 
        on which a licensee receives a notice under paragraph (1), the 
        State shall give the licensee an opportunity to show why, based 
        upon the licensee's efforts to assure compliance with such 
        section, the suspension or revocation of the license would be 
        unwarranted and unjust. The State shall take into consideration 
        any information provided by the licensee prior to suspending or 
        revoking such license.
            ```(3) Waiver.--If a licensee demonstrates that it has made 
        appropriate good faith efforts to assure compliance with 
        section 3(b)(1), the State may waive the penalty of suspension 
        or revocation.

```SEC. 6. PURCHASE, RECEIPT, OR POSSESSION BY MINORS PROHIBITED.

    ```(a) In General.--An individual under 18 years of age shall not 
purchase or attempt to purchase, receive or attempt to receive, 
possess, smoke, or otherwise use or consume a tobacco product in a 
public place.
    ```(b) Penalties to Minors.--A minor found to be in violation of 
subsection (a) shall incur a written warning and may incur--
            ```(1) a civil money penalty of not less than $25 and not 
        more that $150 for each violation;
            ```(2) the suspension of his or her motor vehicle 
        operator's license; and
            ```(3) any other civil penalty determined appropriate by 
        the State.
    ```(c) Notice.--A law enforcement agency, upon determining that an 
individual under 18 years of age allegedly violated subsection (a) 
shall notify the individual's parent or parents, custodian, or guardian 
as to the nature of the violation if the name and address of a parent, 
guardian, or custodian is reasonably ascertainable by the law 
enforcement agency. The notice required by this subsection shall be 
made not later than 48 hours after the individual who allegedly 
violated subsection (a) is cited by such agency for the violation. The 
notice may be made by any means reasonably calculated to give prompt 
actual notice, including notice in person, by telephone, or by first-
class mail.
    ```(d) Employment.--Subsection (a) does not prohibit an individual 
under the age of 18 from possessing a tobacco product during regular 
working hours and in the course of such individual's employment if the 
tobacco product is not possessed for such individual's consumption.

```SEC. 7. ENFORCEMENT.

    ```(a) Random Unannounced Inspections.--The State shall establish 
procedures to ensure compliance with this Act. Such procedures shall 
consist of random, unannounced inspections of establishments that are 
licensed to sell tobacco in a fashion that is designed to achieve data 
that is of statistical significance, and shall engage an individual 
under 18 years of age to test compliance with this Act.
    ```(b) Enforcement Authority.--The State shall designate an agency 
within the State with law enforcement or regulatory authority to 
enforce this Act.
    ```(c) Use of Penalties and Fees.--Penalties and fees collected 
under this Act shall be used to defray the costs of the State in 
administering and enforcing this Act.

```SEC. 8. SIGNAGE.

    ```It shall be unlawful for any licensee who sells tobacco products 
to fail to post conspicuously a sign communicating that--
            ```(1) the sale of tobacco products to individuals under 
        the age of 18 is prohibited by law,
            ```(2) the purchase of tobacco products by individuals 
        under the age of 18 is prohibited by law, and
            ```(3) proof of age will be demanded of individuals under 
        21 years of age.
A licensee who fails to post a sign in violation of this section is 
liable for a civil money penalty of $500.

```SEC. 9. NOTIFICATION OF EMPLOYEES.

    ```(a) Notice to Employees.--Within 90 days of the effective date 
of this Act, every licensee engaged in the business of distributing 
tobacco products at retail shall implement a program to notify each 
employee employed by that licensee who distributes tobacco products 
that this Act--
            ```(1) prohibits the distribution of tobacco products to 
        any individual under 18 years of age and the purchase, receipt, 
        possession, smoking, or other use or consumption of tobacco 
        products by any individual under 18 years of age, and
            ```(2) prohibits out-of-package distribution of cigarettes 
        and smokeless tobacco products.
    ```(b) Statement.--It shall be a defense to a charge that an 
employer or licensee violated subsection (a) of this section that the 
employee acknowledged in writing receipt of a statement in 
substantially the following form:
        `````I understand that State law prohibits the distribution of 
        tobacco products to individuals under 18 years of age and out-
        of-package distribution of cigarettes and smokeless tobacco 
        products and permits a defense based on evidence that a 
        recipient's proof of age was reasonably relied upon and 
        appeared on its face to be valid. I understand that if I sell, 
        give, or voluntarily provide tobacco products to an individual 
        under the age of 18, I may be found responsible for a civil 
        money penalty for each violation. I promise to comply with this 
        Act.''.
    ```(c) Vicarious Liability.--If an employer or licensee is charged 
with a violation of subsection (a) and the employer uses as a defense 
to such charge the defense provided by subsection (b), the employer 
shall be deemed to be liable for such violation if such employer pays 
the penalty imposed on the employee involved in such violation or in 
any way reimburses the employee for such penalty.

```SEC. 10. PENALTY FOR SALE OR DISTRIBUTION OF TOBACCO PRODUCTS 
              WITHOUT A LICENSE.

    ```(a) In general.--Any person who engages in the distribution at 
retail of tobacco products without a license required by this Act is 
liable for a civil money penalty in an amount equal to 2 times the 
applicable license fee and $250 for each day on which such distribution 
continues without a license.
    ```(b) Suspension or Revocation.--Any person who engages in the 
distribution at retail of tobacco products after a license issued under 
this Act has been suspended or revoked is liable for a civil money 
penalty of $500 per day for each day on which such distribution 
continues after the date such person received notice of such suspension 
or revocation.

```SEC. 11. EFFECTIVE DATE.

    ```No person shall engage in the distribution at retail of tobacco 
products on or after 180 days after the date of enactment of this Act 
unless the person is authorized to do so by a license issued pursuant 
to this section or is an employee or agent of a person who has been 
issued such a license.'.

``SEC. 2824. FUNDING.

    ``(a) In General.--There shall be made available from the Tobacco 
Settlement Trust Fund to carry out this subtitle $65,000,000 for each 
of the fiscal years 1999 through 2008.
    ``(b) Allotment to States.--From the amount made available under 
subsection (a) for any fiscal year, the Secretary shall allot to each 
State the applicable percentage of such 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
                  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

``SEC. 2825. REGULATIONS.

    ``Not later than 12 months after the date of enactment of this 
title, the Secretary, acting through the Office on Smoking and Health 
of the Centers for Disease Control and Prevention, shall promulgate 
regulations to implement this subtitle.

            ``Subtitle C--State and Community Action Program

``SEC. 2831. FUNDING FROM TOBACCO SETTLEMENT TRUST FUND.

    ``(a) In General.--There shall be made available from the Tobacco 
Settlement Trust Fund to carry out this subtitle--
            ``(1) $145,000,000 for each of the fiscal years 1999 and 
        2000;
            ``(2) $170,000,000 for fiscal year 2001;
            ``(3) $240,000,000 for each of the fiscal years 2002 and 
        2003;
            ``(4) $340,000,000 for each of the fiscal years 2004 and 
        2005;
            ``(5) $385,000,000 for each of the fiscal years 2006 and 
        2007; and
            ``(6) $440,000,000 for fiscal year 2008.
    ``(b) Sunset Provision.--This subtitle shall terminate on September 
30, 2009.

``SEC. 2832. ALLOTMENTS.

    ``(a) In General.--From the amount made available under section 
2831 for any fiscal year, the Secretary, acting through the Director of 
the Office on Smoking and Health of the Centers for Disease Control and 
Prevention (referred to in this subtitle as the `Director'), shall 
allot to each State the applicable percentage of such 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
                  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
    ``(b) Reallotment.--To the extent that amounts made available under 
section 2831 for a fiscal year are not otherwise allotted to States 
because--
            ``(1) 1 or more States have not submitted an application or 
        description of activities in accordance with section 2835 for 
        the fiscal year;
            ``(2) 1 or more States have notified the Secretary that 
        they do not intend to use the full amount of their allotment; 
        or
            ``(3) the Secretary has determined that the State is not in 
        compliance with this title, and therefore is subject to 
        penalties under section 2837;
such excess amount shall be reallotted among each of the remaining 
States in proportion to the amount otherwise allotted to such States 
for the fiscal year involved without regard to this subsection.
    ``(c) Regulations.--Not later than 18 months after the date of 
enactment of this title, the Secretary shall promulgate regulations to 
implement this subtitle. This subtitle shall take effect regardless of 
the date on which such regulations are promulgated.

``SEC. 2833. PAYMENTS UNDER ALLOTMENTS TO STATES.

    ``(a) In General.--
            ``(1) Method of payment.--The Secretary shall make payments 
        to States under allotments under this subtitle as provided for 
        under section 203 of the Intergovernmental Cooperation Act of 
        1968.
            ``(2) Availability of funds.--Any amount paid to a State 
        for a fiscal year under this subtitle and remaining unobligated 
        at the end of such year shall remain available to such State 
        for the next fiscal year for the purposes for which such 
        payment was made.
    ``(b) Reductions.--The Secretary, at the request of a State, may 
reduce the amount of payments to the State under subsection (a) by--
            ``(1) the fair market value of any supplies or equipment 
        furnished by the Secretary to the State; and
            ``(2) the amount of the pay, allowances, and travel 
        expenses of any officer or employee of the Federal Government 
        when detailed to the State and the amount of any other costs 
        incurred in connection with the detail of such officer or 
        employee;
when the furnishing of such supplies or equipment or the detail of such 
an officer or employee is for the convenience of and at the request of 
the State and for the purpose of conducting activities described in 
section 2834. The amount by which any payment is so reduced shall be 
available for payment by the Secretary of the costs incurred in 
furnishing the supplies or equipment or in detailing the personnel, on 
which reduction of the payment is based, and the amount shall be deemed 
to be part of the payment and shall be deemed to have been paid to the 
State.

``SEC. 2834. USE OF ALLOTMENTS.

    ``(a) State and Community Action Activities.--
            ``(1) In general.--Except as provided in subsections (b) 
        and (c), amounts paid to a State under section 2833 may be used 
        for the following:
                    ``(A) Activities described in the plan of the 
                State, submitted in accordance with section 2835, 
                including--
                            ``(i) evidence-based State and community 
                        initiatives for tobacco use prevention and 
                        control;
                            ``(ii) infrastructure development modeled 
                        after the National Cancer Society's ASSIST 
                        program, or another evidence-based model 
                        approved by the Director;
                            ``(iii) to develop effective counter 
                        advertising;
                            ``(iv) the development and implementation 
                        of anti-tobacco education programs and public 
                        policy initiatives; and
                            ``(v) school-based efforts to prevent 
                        tobacco use and addiction, developed 
                        scientifically and approved by the Director.
            ``(B) Planning, administration, and educational activities 
        related to the activities described in subparagraph (A).
            ``(C) The monitoring and evaluation of activities carried 
        out under subparagraphs (A) and (B).
            ``(2) Technical assistance.--The Secretary may provide 
        technical assistance to States in planning and operating 
        activities to be carried out under this subtitle.
    ``(b) Limitation.--A State may not use amounts paid to the State 
under section 2833 to--
            ``(1) purchase or improve land, purchase, construct, or 
        permanently improve (other than minor remodeling) any building 
        or other facility, or purchase major medical equipment;
            ``(2) satisfy any requirement for the expenditure of non-
        Federal funds as a condition of the receipt of Federal funds;
            ``(3) provide financial assistance to any entity other than 
        a public or nonprofit private entity; or
            ``(4) fund educational, recreational, or health activities 
        not scientifically proven to prevent youth smoking or lead to 
        success of cessation efforts among youths.
    ``(c) Administration.--Not more than 10 percent of the allotment of 
a State for a the fiscal year under this subtitle may be used by the 
State to administer the funds paid to the State under section 2833. The 
State shall pay from non-Federal sources the remaining costs of 
administering such funds.

``SEC. 2835. APPLICATION FOR PAYMENTS; STATE PLAN.

    ``(a) In General.--The Secretary may make payments under section 
2833 to a State for a fiscal year only if--
            ``(1) the State submits to the Secretary an application for 
        such payments;
            ``(2) the application contains a State plan in accordance 
        with subsection (b);
            ``(3) the application contains the certification described 
        in subsection (c);
            ``(4) the application contains such assurances as the 
        Secretary may require regarding the compliance of the State 
        with the requirements of this subtitle (including assurances 
        regarding compliance with the agreements described in 
        subsection (c)); and
            ``(5) the application is in such form and is submitted by 
        such date as the Secretary may require.
    ``(b) State Plan.--A State plan required under subsection (a)(2) 
for a fiscal year is in accordance with this subsection if the plan 
meets the following conditions:
            ``(1) The plan is developed by the State agency with 
        principal responsibility for public health programs, in 
        consultation with the advisory committee established pursuant 
        to subsection (c)(2).
            ``(2) The plan specifies the activities authorized under 
        section 2834 that are to be carried out with payments made to 
        the State under section 2833.
            ``(3) The plan specifies the amount of such payments to be 
        expended for each of such activities and includes a description 
        of the programs and projects to be carried out.
            ``(4) The plan describes the measurable objectives, 
        developed in consultation with the Secretary, that will be used 
        to evaluate program outcomes.
    ``(c) State Certification.--The certification referred to in 
subsection (a)(3) for a fiscal year is a certification to the Secretary 
by the chief executive officer of the State involved as follows:
            ``(1)(A) In the development of the State plan required in 
        subsection (a)(2)--
                    ``(i) the chief health officer of the State held 
                public hearings on the plan; and
                    ``(ii) proposals for the plan were made public in a 
                manner that facilitated comments from public and 
                private entities (including Federal and other public 
                agencies).
            ``(B) The State agrees that, if any revisions are made in 
        such plan during the fiscal year, the State will, with respect 
        to the revisions, hold hearings and make proposals public in 
        accordance with subparagraph (A), and will submit to the 
        Secretary a description of the revisions.
            ``(2) The State has established an advisory committee in 
        accordance with subsection (d).
            ``(3) The State agrees to expend payments under section 
        2833 only for the activities authorized in section 2834.
            ``(4) The State agrees to expend such payments in 
        accordance with the State plan submitted under subsection 
        (a)(2) (with any revisions submitted to the Secretary under 
        paragraph (1)(B)), including making expenditures to carry out 
        the strategy contained in the plan pursuant to subsection 
        (b)(5).
            ``(5)(A) The State agrees that, in the case of each 
        population for which such strategy is carried out, the State 
        will measure the extent of progress being made toward improving 
        the health status of the population.
            ``(B) The State agrees that--
                    ``(i) the State will collect and report data in 
                accordance with section 2836(a);
                    ``(ii) for purposes of subparagraph (A), progress 
                will be measured through the use of the applicable 
                uniform data items developed by the Secretary under 
                section 2836(a)(2), or if no such items are applicable, 
                through use of the uniform criteria developed by the 
                Secretary under section 2836(a)(3).
            ``(6) With respect to the activities authorized in section 
        2834, the State agrees to maintain State expenditures for such 
        activities at a level that is not less than the average level 
        of such expenditures maintained by the State for the 2-year 
        period preceding the fiscal year for which the State is 
        applying to receive payments under section 2833.
            ``(7) The State agrees to establish reasonable criteria to 
        evaluate the effective performance of entities that receive 
        funds from such payments and procedures for procedural and 
        substantive independent State review of the failure by the 
        State to provide funds for any such entity.
            ``(8) The State agrees to permit and cooperate with Federal 
        investigations undertaken in accordance with section 2837.
    ``(d) State Advisory Committee.--
            ``(1) In General.--For purposes of subsection (c)(2), an 
        advisory committee is in accordance with this subsection if 
        such committee meets the conditions described in this 
        subsection.
            ``(2) Duties.--A condition under paragraph (1) for a State 
        is that the duties of the committee are--
                    ``(A) to hold public hearings on the State plan 
                required under subsection (a)(2); and
                    ``(B) to make recommendations pursuant to 
                subsection (b)(1) regarding the development and 
                implementation of such plan, including recommendations 
                on--
                            ``(i) the conduct of assessments under the 
                        plan;
                            ``(ii) which of the activities authorized 
                        in section 2834 should be carried out in the 
                        State;
                            ``(iii) the allocation of payments made to 
                        the State under section 2833;
                            ``(iv) the coordination of activities 
                        carried out under such plan with relevant 
                        programs of other entities; and
                            ``(v) the collection and reporting of data 
                        in accordance with section 2836(a).
            ``(3) Composition.--
                    ``(A) In general.--A condition under paragraph (1) 
                for a State is that the advisory committee be composed 
                of such members of the general public, and such 
                officials of the health departments of political 
                subdivisions of the State, as may be necessary to 
                provide adequate representation of the general public 
                and of such health departments.
                    ``(B) Representatives.--With respect to compliance 
                with subparagraph (A), the membership of the advisory 
                committee established pursuant to subsection (c)(2) may 
                include representatives of community-based 
                organizations (including minority community-based 
                organizations), schools of public health, and entities 
                to which the State involved awards grants or contracts 
                to carry out activities authorized under section 2834.
            ``(4) Chairperson; meetings.--A condition under paragraph 
        (1) for a State is that the State public health officer shall 
        serve as the chairperson of the advisory committee, and that 
        the committee meet not less than twice each fiscal year.

``SEC. 2836. REPORTS, DATA, AND AUDITS.

    ``(a) Data.--
            ``(1) Collection and reporting.--For purposes of section 
        2835(c)(5)(B)(i), a State is collecting and reporting data for 
        a fiscal year in accordance with this subsection if the State 
        submits to the Secretary, not later than February 1 of the 
        succeeding fiscal year a report that--
                    ``(A) describes the purposes for which the State 
                expended payments made to the State under section 2833;
                    ``(B) pursuant to section 2835(c)(5)(A), describes 
                the extent of progress made by the State for purposes 
                of such section;
                    ``(C) meets the conditions described paragraph (2); 
                and
                    ``(D) contains such additional information 
                regarding activities authorized under section 2834, and 
                is submitted in such form, as the Secretary may 
                require.
            ``(2) Uniform data sets.--
                    ``(A) In general.--The Secretary, in consultation 
                with the States, shall develop sets of data for 
                uniformly defining levels of youth and adult use of 
                tobacco products (referred to as `uniform tobacco 
                product use data items'). The Secretary shall develop 
                formats for the uniform collecting and reporting of 
                information on such items.
            ``(B) Later fiscal years.--In the case of fiscal year 2000 
        and each subsequent fiscal year, a condition under paragraph 
        (1) for a State is that the State will, in accordance with the 
        applicable format under subparagraph (A), collect during such 
        year, and include in the report under paragraph (1), the 
        necessary information for each of the tobacco product use data 
        items.
            ``(3) Uniform criteria.--The Secretary, in consultation 
        with the States, shall establish criteria for the uniform 
        collection and reporting of data on activities authorized in 
        section 2844 with respect to which no uniform tobacco product 
        use data items under paragraph (2) exist.
            ``(4) Public inspection of reports.--A condition under 
        paragraph (1) for a fiscal year is that the State involved will 
make copies of the report submitted under such paragraph for the fiscal 
year available for public inspection, and will upon request provide a 
copy of the report to any individual for a charge not exceeding the 
cost of providing the copy.
    ``(b) Audits.--
            ``(1) Fiscal control and accounting procedures.--Each State 
        shall establish fiscal control and fund accounting procedures 
        as may be necessary to ensure the proper disbursal of and 
        accounting for Federal funds paid to the State under section 
        2833.
            ``(2) Annual submission.--Each State shall annually audit 
        its expenditures from payments received under section 2833. 
        Such State audits shall be conducted by an entity independent 
        of any agency administering a program funded under this 
        subtitle, and, in so far as practical, in accordance with the 
        Comptroller General's standards for auditing governmental 
        organizations, programs, activities, and functions. Within 30 
        days following the date on which each audit is completed, the 
        chief executive officer of the State shall transmit a copy of 
        that audit to the Secretary.
            ``(3) Repayments.--Each State shall, after being provided 
        by the Secretary with adequate notice and an opportunity for a 
        hearing within the State, repay to the United States amounts 
        found not to have been expended in accordance with the 
        requirements of this subtitle or the certification provided by 
        the State under section 2835. If such repayment is not made, 
        the Secretary shall, after providing the State with adequate 
        notice and opportunity for a hearing within the State, offset 
        such amounts against the amount of any allotment to which the 
        State is or may become entitled under this subtitle.
            ``(4) Availability.--The State shall make copies of the 
        reports and audits required by this subsection available for 
        public inspection within the State.
            ``(5) Evaluation.--The Comptroller General of the United 
        States shall, from time to time, evaluate the expenditures by 
        the States of payments under this subtitle in order to ensure 
        that expenditures are consistent with the provisions of this 
        subtitle and the certification provide by the State under 
        section 2835.
            ``(6) Report by secretary.--Not later than October 1, 2000, 
        the Secretary shall prepare and submit to the appropriate 
        committees of Congress a report concerning the activities of 
        the States that have received funds under this subtitle and may 
        include in the report any recommendations for appropriate 
        changes in legislation.
    ``(c) Nonapplication of Certain Provisions.--Title XVII of the 
Omnibus budget Reconciliation Act of 1981 shall not apply with respect 
to audits of funds allotted under this subtitle.

``SEC. 2837. WITHHOLDING.

    ``(a) Withholding for Misuse.--
            ``(1) In general.--The Secretary shall, after adequate 
        notice and opportunity for a hearing conducted within the 
        affected State, withhold funds from any State which does not 
        use its allotment in accordance with the requirements of this 
        subtitle or the certifications otherwise provided by States 
        under this subtitle. The Secretary shall withhold such funds 
        until the Secretary finds that the reason for the withholding 
        has been removed and there is reasonable assurance that it will 
        not recur.
            ``(2) Investigation.--The Secretary may not institute 
        proceedings to withhold funds under paragraph (1) unless the 
        Secretary has conducted an investigation concerning whether the 
        State has used its allotment in accordance with the 
        requirements of this subtitle or the certifications otherwise 
        provided under this subtitle. Investigations required by this 
        paragraph shall be conducted within the affected State by 
        qualified investigators.
            ``(3) Response to complaints.--The Secretary shall respond 
        in an expeditious manner to complaints of a substantial or 
        serious nature that a State has failed to use funds in 
        accordance with the requirements of this subtitle or the 
        certifications otherwise provided under this subtitle.
            ``(4) Minor failures.--The Secretary may not withhold funds 
        under paragraph (1) from a State for a minor failure to comply 
        with the requirements of this subtitle or certifications 
        otherwise provided under this subtitle.
    ``(b) Investigations.--
            ``(1) By secretary.--The Secretary shall conduct in several 
        States in each fiscal year investigations of the use of funds 
        received by the States under this subtitle in order to evaluate 
        compliance with the requirements of this subtitle and 
        certifications otherwise provided under this subtitle.
            ``(2) By comptroller general.--The Comptroller General of 
        the United States may conduct investigations of the use of 
        funds received under this subtitle by a State in order to 
        insure compliance with the requirements of this subtitle and 
        certifications otherwise provided under this subtitle.
    ``(c) Availability of Records.--Each State, and each entity which 
has received funds from an allotment made to a State under this 
subtitle, shall make appropriate books, documents, papers, and records 
available to the Secretary or the Comptroller General of the United 
States, or any of their duly authorized representatives, for 
examination, copying, or mechanical reproduction on or off the premises 
of the appropriate entity upon a reasonable request therefore.
    ``(d) Limitation.--
            ``(1) In general.--In conducting any investigation in a 
        State, the Secretary or the Comptroller General of the United 
        States may not make a request for any information not readily 
        available to such State or an entity which has received funds 
        from an allotment made to the State under this subtitle or make 
        an unreasonable request for information to be compiled, 
        collected, or transmitted in any form not readily available.
            ``(2) Nonapplication to judicial proceedings.--Paragraph 
        (1) does not apply to the collection, compilation, or 
        transmittal of data in the course of a judicial proceeding.

``SEC. 2838. NONDISCRIMINATION.

    ``(a) Programs and Activities.--
            ``(1) In general.--For the purpose of applying the 
        prohibitions against discrimination on the basis of age under 
        the Age Discrimination Act of 1975, on the basis of handicap 
        under section 504 of the Rehabilitation Act of 1973, on the 
        basis of sex under title IX of the Education Amendments of 
        1972, or on the basis of race, color, or national origin under 
        title VI of the Civil Rights Act of 1964, programs and 
        activities funded in whole or in part with funds made available 
        under this subtitle are considered to be programs and 
        activities receiving Federal financial assistance.
            ``(2) Gender or religion.--No person shall on the ground of 
        gender or religion be excluded from participation in, be denied 
        the benefits of, or be subjected to discrimination under, any 
        program or activity funded in whole or in part with funds made 
        available under this subtitle.
    ``(b) Failure to Comply.--Whenever the Secretary finds that a 
State, or an entity that has received a payment from an allotment to a 
State under this subtitle, has failed to comply with a provision of law 
referred to in subsection (a)(1), with subsection (a)(2), or with an 
applicable regulation (including one prescribed to carry out subsection 
(a)(2)), the Secretary shall notify the chief executive officer of the 
State and shall request such officer to secure compliance. If within a 
reasonable period of time, not to exceed 60 days, the chief executive 
officer fails or refuses to secure compliance, the Secretary may--
            ``(1) refer the matter to the Attorney General with a 
        recommendation that an appropriate civil action be instituted;
            ``(2) exercise the powers and functions provided by title 
        VI of the Civil Rights Act of 1964, the Age Discrimination Act 
        of 1975, or section 504 of the Rehabilitation Act of 1973, as 
        may be applicable; or
            ``(3) take such other action as may be provided by law.
    ``(c) Action by Attorney General.--When a matter is referred to the 
Attorney General pursuant to subsection (b)(1), or whenever he has 
reason to believe that a State or an entity is engaged in a pattern or 
practice in violation of a provision of law referred to in subsection 
(a)(1) or in violation of subsection (a)(2), the Attorney General may 
bring a civil action in any appropriate district court of the United 
States for such relief as may be appropriate, including injunctive 
relief.

``SEC. 2839. CRIMINAL PENALTY FOR FALSE STATEMENTS.

    ``Whoever--
            ``(1) knowingly and willfully makes or causes to be made 
        any false statement or representation of a material fact in 
        connection with the furnishing of items or services for which 
        payment may be made by a State from funds allotted to the State 
        under this subtitle; or
            ``(2) having knowledge of the occurrence of any event 
        affecting his or her initial or continued right to any such 
        payment conceals or fails to disclose such event with an intent 
        fraudulently to secure such payment either in a greater amount 
        than is due or when no such payment is authorized;
shall be fined not more than $25,000 or imprisoned for not more than 5 
years, or both.

                ``Subtitle D--Smoking Cessation Programs

``SEC. 2841. FUNDING FROM TOBACCO SETTLEMENT TRUST FUND.

    ``(a) Funding.--There shall be made available from the Tobacco 
Settlement Trust Fund to carry out this section--
            ``(1) $1,000,000,000 for each of the fiscal years 1999 
        through 2002; and
            ``(2) $1,500,000,000 for each of the fiscal years 2003 
        through 2008.
    ``(b) Limitation.--Not more than 2 percent of the amount available 
for any fiscal year under subsection (a) shall be made available to the 
Secretary to carry out the activity described in section 2842(c).
    ``(c) Sunset Provision.--This subtitle shall terminate on September 
30, 2009.

``SEC. 2842. ALLOTMENTS.

    ``(a) In General.--From the amount made available under section 
2841 for any fiscal year, the Secretary shall allot to each State the 
applicable percentage of such 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
                  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
    ``(b) Reallotment.--To the extent that amounts made available under 
section 2831 for a fiscal year are not otherwise allotted to States 
because--
            ``(1) 1 or more States have not submitted an application or 
        description of activities in accordance with section 2845 for 
        the fiscal year;
            ``(2) 1 or more States have notified the Secretary that 
        they do not intend to use the full amount of their allotment; 
        or
            ``(3) the Secretary has determined that the State is not in 
        compliance with this title, and therefore is subject to 
        penalties under section 2847;
such excess amount shall be reallotted among each of the remaining 
States in proportion to the amount otherwise allotted to such States 
for the fiscal year involved without regard to this subsection.
    ``(c) Analyses.--The Secretary, acting through the Administrator of 
the Agency Health Care Policy and Research, shall conduct periodic 
analyses of the best available scientific information in the area of 
smoking and tobacco product use cessation.
    ``(d)  Regulations.--Not later than 9 months after the date of 
enactment of this title, the Secretary shall promulgate regulations to 
implement this subtitle. This subtitle shall take effect regardless of 
the date on which such regulations are promulgated.

``SEC. 2843. PAYMENTS UNDER ALLOTMENTS TO STATES.

    ``(a) In General.--
            ``(1) Method of payment.--The Secretary shall make payments 
        to States under allotments under this subtitle as provided for 
        under section 203 of the Intergovernmental Cooperation Act of 
        1968.
            ``(2) Availability of funds.--Any amount paid to a State 
        for a fiscal year under this subtitle and remaining unobligated 
        at the end of such year shall remain available to such State 
        for the next fiscal year for the purposes for which such 
        payment was made.
    ``(b) Reductions.--The Secretary, at the request of a State, may 
reduce the amount of payments to the State under subsection (a) by--
            ``(1) the fair market value of any supplies or equipment 
        furnished by the Secretary to the State; and
            ``(2) the amount of the pay, allowances, and travel 
        expenses of any officer or employee of the Federal Government 
        when detailed to the State and the amount of any other costs 
        incurred in connection with the detail of such officer or 
        employee;
when the furnishing of such supplies or equipment or the detail of such 
an officer or employee is for the convenience of and at the request of 
the State and for the purpose of conducting activities described in 
section 2844. The amount by which any payment is so reduced shall be 
available for payment by the Secretary of the costs incurred in 
furnishing the supplies or equipment or in detailing the personnel, on 
which reduction of the payment is based, and the amount shall be deemed 
to be part of the payment and shall be deemed to have been paid to the 
State.

``SEC. 2844. USE OF ALLOTMENTS.

    ``(a) State and Community Action Activities.--
            ``(1) In general.--Except as provided in subsections (b) 
        and (c), amounts paid to a State under section 2843 may be used 
        for the following:
                    ``(A) Activities described in the plan of the 
                State, submitted in accordance with section 2845, 
                including--
                            ``(i) science-based programs designed to 
                        assist individuals who to quit their use of 
                        tobacco products;
                            ``(ii) training in cessation intervention 
                        methods for health plans and health 
                        professionals, including physicians, nurses, 
                        dentists, and other health care providers; and
                            ``(iii) programs to encourage health 
                        insurers and health plans to provide coverage 
                        for science-based tobacco use cessation 
                        treatment.
            ``(B) Planning, administration, and educational activities 
        related to the activities described in subparagraph (A).
                    ``(C) The monitoring and evaluation of activities 
                carried out under subparagraphs (A) and (B).
            ``(2) Coordination.--Tobacco use cessation activities 
        permitted under paragraph (1) may be conducted in coordination 
        with the following programs:
                    ``(A) The special supplemental food program under 
                section 17 of the Child Nutrition Act of 1966 (42 
                U.S.C. 1786)
                    ``(B) The Maternal and Child Health Services Block 
                Grant program under title V of the Social Security Act 
                (42 U.S.C. 701 et seq.).
                    ``(C) The State Children's Health Insurance Program 
                of the State under title XXI of the Social Security Act 
                (42 U.S.C. 13397aa et seq.).
                    ``(D) A Head Start program under the Head Start Act 
                (42 U.S.C. 9801 et seq.).
                    ``(E) The school lunch program under the National 
                School Lunch Act (42 U.S.C. 1751 et seq.).
                    ``(F) An Indian Health Service Program.
                    ``(G) The community health center program under 
                section 330 of the Public Health Service Act (42 U.S.C. 
                254b).
                    ``(H) Programs under title X of the Public Health 
                Service Act (42 U.S.C. 300 et seq.).
                    ``(I) State-initiated smoking cessation programs 
                that include provisions for reimbursing individuals for 
                medications or other therapeutic techniques.
                    ``(J) The substance abuse and mental health 
                services block grant program, and the preventive health 
                services block grant program, under title XIX of the 
                Public Health Service Act (42 U.S.C. 300w et seq.).
                    ``(K) The medicaid program under title XIX of the 
                Social Security Act (42 U.S.C. 1396 et seq.).
                    ``(L) Programs administered by the Department of 
                Veterans Affairs.
            ``(3) Technical assistance.--The Secretary may provide 
        technical assistance to States in planning and operating 
        activities to be carried out under this subtitle.
    ``(b) Limitation.--A State may not use amounts paid to the State 
under section 2843 to--
            ``(1) make cash payments to intended recipients of tobacco 
        use cessation services;
            ``(2) purchase or improve land, purchase, construct, or 
        permanently improve (other than minor remodeling) any building 
        or other facility, or purchase major medical equipment;
            ``(3) satisfy any requirement for the expenditure of non-
        Federal funds as a condition of the receipt of Federal funds; 
        or
            ``(4) provide financial assistance to any entity other than 
        a public or nonprofit private entity.
    ``(c) Administration.--Not more than 8 percent of the allotment of 
a State for a fiscal year under this subtitle may be used by the State 
to administer the funds paid to the State under section 2843. The State 
shall pay from non-Federal sources the remaining costs of administering 
such funds.

``SEC. 2845. APPLICATION FOR PAYMENTS; STATE PLAN.

    ``(a) In General.--The Secretary may make payments under section 
2843 to a State for a fiscal year only if--
            ``(1) the State submits to the Secretary an application for 
        such payments;
            ``(2) the application contains a State plan in accordance 
        with subsection (b);
            ``(3) the application contains the certification described 
        in subsection (c);
            ``(4) the application contains such assurances as the 
        Secretary may require regarding the compliance of the State 
        with the requirements of this subtitle (including assurances 
        regarding compliance with the agreements described in 
        subsection (c)); and
            ``(5) the application is in such form and is submitted by 
        such date as the Secretary may require.
    ``(b) State Plan.--A State plan required in subsection (a)(2) for a 
fiscal year is in accordance with this subsection if the plan meets the 
following conditions:
            ``(1) The plan is developed by the State agency with 
        principal responsibility for public health programs, in 
        consultation with the advisory committee established pursuant 
        to subsection (c)(2).
            ``(2) The plan provides for tobacco use cessation treatment 
        consistent with the smoking cessation guidelines issued by the 
        Agency for Health Care Policy and Research, or another 
        evidence-based guideline approved by the Secretary.
            ``(3) The plan specifies the populations in the State for 
        which such activities are to be carried out, and specifies the 
        populations in the State that have a disparate need for such 
        activities.
            ``(4) With respect to each population specified under 
        paragraph (3), the plan contains a strategy for expending such 
        payments to carry out such activities. Such strategy shall 
        include--
                    ``(A) a description of the programs and projects to 
                be carried out;
                    ``(B) an estimate of the number of individuals to 
                be served by the programs and projects; and
                    ``(C) an estimate of the number of public health 
                personnel needed to carry out the strategy.
            ``(5) The plan specifies the amount of such payments to be 
        expended for each of such activities and, with respect to the 
        activity involved, the amount to be expended for each 
        population specified under paragraph (3).
            ``(6) The plan provides for training in tobacco use 
        cessation intervention methods for health plans and health 
        professionals, including physicians, nurses, dentists, and 
        other health care providers.
            ``(7) The plan ensures access to smoking cessation programs 
        for rural and underserved populations.
            ``(8) The plan describes the measurable objectives, 
        developed in consultation with the Secretary, that will be used 
        to evaluate program outcomes.
    ``(c) State Certification.--The certification referred to in 
subsection (a)(3) for a fiscal year is a certification to the Secretary 
by the chief executive officer of the State involved as follows:
            ``(1)(A) In the development of the State plan required in 
        subsection (a)(2)--
                    ``(i) the chief health officer of the State held 
                public hearings on the plan; and
                    ``(ii) proposals for the plan were made public in a 
                manner that facilitated comments from public and 
                private entities (including Federal and other public 
                agencies).
            ``(B) The State agrees that, if any revisions are made in 
        such plan during the fiscal year, the State will, with respect 
        to the revisions, hold hearings and make proposals public in 
        accordance with subparagraph (A), and will submit to the 
        Secretary a description of the revisions.
            ``(2) The State has established an advisory committee in 
        accordance with subsection (d).
            ``(3) The State agrees to expend payments under section 
        2843 only for the activities authorized in section 2844.
            ``(4) The State agrees to expend such payments in 
        accordance with the State plan submitted under subsection 
        (a)(2) (with any revisions submitted to the Secretary under 
        paragraph (1)(B)), including making expenditures to carry out 
        the strategy contained in the plan pursuant to subsection 
        (b)(5).
            ``(5)(A) The State agrees that, in the case of each 
        population for which such strategy is carried out, the State 
        will measure the extent of progress being made toward improving 
        the health status of the population.
            ``(B) The State agrees that--
                    ``(i) the State will collect and report data in 
                accordance with section 2846(a)
                    ``(ii) for purposes of subparagraph (A), progress 
                will be measured through the use of the applicable 
                uniform data items developed by the Secretary under 
                section 2846(a)(2), or if no such items are applicable, 
                through use of the uniform criteria developed by the 
                Secretary under section 2846(a)(3).
            ``(6) With respect to the activities authorized in section 
        2844, the State agrees to maintain State expenditures for such 
        activities at a level that is not less than the average level 
        of such expenditures maintained by the State for the 2-year 
        period preceding the fiscal year for which the State is 
        applying to receive payments under section 2843.
            ``(7) The State agrees to establish reasonable criteria to 
        evaluate the effective performance of entities that receive 
        funds from such payments and procedures for procedural and 
        substantive independent State review of the failure by the 
        State to provide funds for any such entity.
            ``(8) The State agrees to permit and cooperate with Federal 
        investigations undertaken in accordance with section 2847.
    ``(d) State Advisory Committee.--
            ``(1) In general.--For purposes of subsection (c)(2), an 
        Advisory Committee is in accordance with this subsection if 
        such committee meets the conditions described in this 
        subsection.
            ``(2) Duties.--A condition under paragraph (1) for a State 
        is that the duties of the committee are--
                    ``(A) to hold public hearings on the State plan 
                required under subsection (a)(2); and
                    ``(B) to make recommendations pursuant to 
                subsection (b)(1) regarding the development and 
                implementation of such plan, including recommendations 
                on--
                            ``(i) the conduct of assessments of the 
                        public health;
                            ``(ii) which of the activities authorized 
                        in section 2844 should be carried out in the 
                        State;
                            ``(iii) the allocation of payments made to 
                        the State under section 2843;
                            ``(iv) the coordination of activities 
                        carried out under such plan with relevant 
                        programs of other entities; and
                            ``(v) the collection and reporting of data 
                        in accordance with section 2846(a).
            ``(3) Composition.--
                    ``(A) In general.--A condition under paragraph (1) 
                for a State is that the Advisory Committee be composed 
                of such members of the general public, and such 
                officials of the health departments of political 
                subdivisions of the State, as may be necessary to 
                provide adequate representation of the general public 
                and of such health departments.
                    ``(B) Representatives.--With respect to compliance 
                with subparagraph (A), the membership of the advisory 
                committee established pursuant to subsection (c)(2) may 
                include representatives of community-based 
                organizations (including minority community-based 
                organizations), schools of public health, and entities 
                to which the State involved awards grants or contracts 
                to carry out activities authorized under section 2844.
            ``(4) Chairperson; Meetings.--A condition under paragraph 
        (1) for a State is that the State public health officer serves 
        as the chairperson of the committee, and that the committee 
        meets not less than twice each fiscal year.

``SEC. 2846. REPORTS, DATA, AND AUDITS.

    ``(a) Data.--
            ``(1) Collection and reporting.--For purposes of section 
        2845(c)(5)(B)(i), a State is collecting and reporting data for 
        a fiscal year in accordance with this subsection if the State 
        submits to the Secretary, not later than February 1 of the 
        succeeding fiscal year a report that--
                    ``(A) describes the purposes for which the State 
                expended payments made to the State under section 2843;
                    ``(B) pursuant to section 2845(c)(5)(A), describes 
                the extent of progress made by the State for purposes 
                of such section;
                    ``(C) meets the conditions described paragraph (2); 
                and
                    ``(D) contains such additional information 
                regarding activities authorized under section 2844, and 
                is submitted in such form, as the Secretary may 
                require.
            ``(2) Uniform data sets.--
                    ``(A) In general.--The Secretary, in consultation 
                with the States, shall develop sets of data for 
                uniformly defining levels of youth and adult use of 
                tobacco products (referred to as `uniform tobacco 
                product use data items'). The Secretary shall develop 
                formats for the uniform collecting and reporting of 
                information on such items.
            ``(B) Later fiscal years.--In the case of fiscal year 2000 
        and each subsequent fiscal year, a condition under paragraph 
        (1) for a State is that the State will, in accordance with the 
        applicable format under subparagraph (A), collect during such 
        year, and include in the report under paragraph (1), the 
        necessary information for each of the tobacco product use data 
        items.
            ``(3) Uniform criteria.--The Secretary, in consultation 
        with the States, shall establish criteria for the uniform 
        collection and reporting of data on activities authorized in 
        section 2844 with respect to which no uniform tobacco product 
        use data items under paragraph (2) exist.
            ``(4) Public inspection of reports.--A condition under 
        paragraph (1) for a fiscal year is that the State involved will 
        make copies of the report submitted under such paragraph for 
        the fiscal year available for public inspection, and will upon 
        request provide a copy of the report to any individual for a 
        charge not exceeding the cost of providing the copy.
    ``(b) Audits.--
            ``(1) Fiscal control and accounting procedures.--Each State 
        shall establish fiscal control and fund accounting procedures 
        as may be necessary to ensure the proper disbursal of and 
        accounting for Federal funds paid to the State under section 
        2843 and funds transferred for use under this subtitle.
            ``(2) Annual submission.--Each State shall annually audit 
        its expenditures from payments received under section 2843. 
        Such State audits shall be conducted by an entity independent 
        of any agency administering a program funded under this 
        subtitle, and, in so far as practical, in accordance with the 
        Comptroller General's standards for auditing governmental 
        organizations, programs, activities, and functions. Within 30 
        days following the date on which each audit is completed, the 
        chief executive officer of the State shall transmit a copy of 
        that audit to the Secretary.
            ``(3) Repayments.--Each State shall, after being provided 
        by the Secretary with adequate notice and an opportunity for a 
        hearing within the State, repay to the United States amounts 
        found not to have been expended in accordance with the 
        requirements of this subtitle or the certification provided by 
        the State under section 2845. If such repayment is not made, 
        the Secretary shall, after providing the State with adequate 
        notice and opportunity for a hearing within the State, offset 
        such amounts against the amount of any allotment to which the 
        State is or may become entitled under this subtitle.
            ``(4) Availability.--The State shall make copies of the 
        reports and audits required by this subsection available for 
        public inspection within the State.
            ``(5) Evaluation.--The Comptroller General of the United 
        States shall, from time to time, evaluate the expenditures by 
        the States of payments under this subtitle in order to ensure 
        that expenditures are consistent with the provisions of this 
        subtitle and the certification provide by the State under 
        section 2845.
            ``(6) Report by secretary.--Not later than October 1, 2000, 
        the Secretary shall prepare and submit to the appropriate 
        committees of Congress a report concerning the activities of 
        the States that have received funds under this subtitle and may 
        include in the report any recommendations for appropriate 
        changes in legislation.
    ``(c) Nonapplication of Certain Provisions.--Title XVII of the 
Omnibus Budget Reconciliation Act of 1981 shall not apply with respect 
to audits of funds allotted under this subtitle.

``SEC. 2847. WITHHOLDING.

    ``(a) Withholding for Misuse.--
            ``(1) In general.--The Secretary shall, after adequate 
        notice and opportunity for a hearing conducted within the 
        affected State, withhold funds from any State which does not 
        use its allotment in accordance with the requirements of this 
        subtitle or the certifications otherwise provided by States 
        under this subtitle. The Secretary shall withhold such funds 
        until the Secretary finds that the reason for the withholding 
has been removed and there is reasonable assurance that it will not 
recur.
            ``(2) Investigation.--The Secretary may not institute 
        proceedings to withhold funds under paragraph (1) unless the 
        Secretary has conducted an investigation concerning whether the 
        State has used its allotment in accordance with the 
        requirements of this subtitle or the certifications otherwise 
        provided under this subtitle. Investigations required by this 
        paragraph shall be conducted within the affected State by 
        qualified investigators.
            ``(3) Response to complaints.--The Secretary shall respond 
        in an expeditious manner to complaints of a substantial or 
        serious nature that a State has failed to use funds in 
        accordance with the requirements of this subtitle or the 
        certifications otherwise provided under this subtitle.
            ``(4) Minor failures.--The Secretary may not withhold funds 
        under paragraph (1) from a State for a minor failure to comply 
        with the requirements of this subtitle or certifications 
        otherwise provided under this subtitle.
    ``(b) Investigations.--
            ``(1) By secretary.--The Secretary shall conduct in several 
        States in each fiscal year investigations of the use of funds 
        received by the States under this subtitle in order to evaluate 
        compliance with the requirements of this subtitle and 
        certifications otherwise provided under this subtitle.
            ``(2) By comptroller general.--The Comptroller General of 
        the United States may conduct investigations of the use of 
        funds received under this subtitle by a State in order to 
        insure compliance with the requirements of this subtitle and 
        certifications otherwise provided under this subtitle.
    ``(c) Availability of Records.--Each State, and each entity which 
has received funds from an allotment made to a State under this 
subtitle, shall make appropriate books, documents, papers, and records 
available to the Secretary or the Comptroller General of the United 
States, or any of their duly authorized representatives, for 
examination, copying, or mechanical reproduction on or off the premises 
of the appropriate entity upon a reasonable request therefore.
    ``(d) Limitation.--
            ``(1) In general.--In conducting any investigation in a 
        State, the Secretary or the Comptroller General of the United 
        States may not make a request for any information not readily 
        available to such State or an entity which has received funds 
        from an allotment made to the State under this subtitle or make 
        an unreasonable request for information to be compiled, 
        collected, or transmitted in any form not readily available.
            ``(2) Nonapplication to judicial proceedings.--Paragraph 
        (1) does not apply to the collection, compilation, or 
        transmittal of data in the course of a judicial proceeding.

``SEC. 2848. NONDISCRIMINATION.

    ``(a) Programs and Activities.--
            ``(1) In general.--For the purpose of applying the 
        prohibitions against discrimination on the basis of age under 
        the Age Discrimination Act of 1975, on the basis of handicap 
        under section 504 of the Rehabilitation Act of 1973, on the 
        basis of sex under title IX of the Education Amendments of 
        1972, or on the basis of race, color, or national origin under 
        title VI of the Civil Rights Act of 1964, programs and 
        activities funded in whole or in part with funds made available 
        under this subtitle are considered to be programs and 
        activities receiving Federal financial assistance.
            ``(2) Gender or religion.--No person shall on the ground of 
        gender or religion be excluded from participation in, be denied 
        the benefits of, or be subjected to discrimination under, any 
        program or activity funded in whole or in part with funds made 
        available under this subtitle.
    ``(b) Failure to Comply.--Whenever the Secretary finds that a 
State, or an entity that has received a payment from an allotment to a 
State under this subtitle, has failed to comply with a provision of law 
referred to in subsection (a)(1), with subsection (a)(2), or with an 
applicable regulation (including one prescribed to carry out subsection 
(a)(2)), the Secretary shall notify the chief executive officer of the 
State and shall request such officer to secure compliance. If within a 
reasonable period of time, not to exceed 60 days, the chief executive 
officer fails or refuses to secure compliance, the Secretary may--
            ``(1) refer the matter to the Attorney General with a 
        recommendation that an appropriate civil action be instituted;
            ``(2) exercise the powers and functions provided by title 
        VI of the Civil Rights Act of 1964, the Age Discrimination Act 
        of 1975, or section 504 of the Rehabilitation Act of 1973, as 
        may be applicable; or
            ``(3) take such other action as may be provided by law.
    ``(c) Action by Attorney General.--When a matter is referred to the 
Attorney General pursuant to subsection (b)(1), or whenever he has 
reason to believe that a State or an entity is engaged in a pattern or 
practice in violation of a provision of law referred to in subsection 
(a)(1) or in violation of subsection (a)(2), the Attorney General may 
bring a civil action in any appropriate district court of the United 
States for such relief as may be appropriate, including injunctive 
relief.

``SEC. 2849. CRIMINAL PENALTY FOR FALSE STATEMENTS.

    ``Whoever--
            ``(1) knowingly and willfully makes or causes to be made 
        any false statement or representation of a material fact in 
        connection with the furnishing of items or services for which 
        payment may be made by a State from funds allotted to the State 
        under this subtitle; or
            ``(2) having knowledge of the occurrence of any event 
        affecting his or her initial or continued right to any such 
        payment conceals or fails to disclose such event with an intent 
        fraudulently to secure such payment either in a greater amount 
        than is due or when no such payment is authorized;
shall be fined not more than $25,000 or imprisoned for not more than 5 
years, or both.

   ``Subtitle E--Reducing Youth Smoking and Tobacco-Related Diseases 
                            Through Research

``SEC. 2851. STUDY BY THE INSTITUTE OF MEDICINE.

    ``(a) Contract.--Not later than 60 days after the date of enactment 
of this title, the Secretary shall enter into a contract with the 
Institute of Medicine for the conduct of a study on the framework for a 
research agenda and research priorities to be used by the National 
Tobacco Task Force established under section 2852.
    ``(b) Considerations.--
            ``(1) In general.--In developing the framework for the 
        research agenda and research priorities under subsection (a) 
        the Institute of Medicine shall focus on increasing knowledge 
        concerning the biological, social, and behavioral factors 
        involved in the prevention of tobacco use, reduction of tobacco 
        use, and health consequences of tobacco use.
            ``(2) Specific considerations.--In the study conducted 
        under subsection (a), the Institute of Medicine shall 
        specifically consider--
                    ``(A) public health and community research relating 
                to tobacco use prevention methods, including public 
                education, media, community strategies;
                    ``(B) behavioral research relating to addiction;
                    ``(C) health services research relating to tobacco 
                product prevention and cessation treatment 
                methodologies;
                    ``(D) surveillance and epidemiology research 
                relating to tobacco; and
                    ``(E) biomedical, including clinical, research 
                relating to prevention and treatment of tobacco-related 
                diseases.
    ``(c) Report.--Not later than 10 months after the date on which the 
Secretary enters into the contract under subsection (a), the Institute 
of Medicine shall prepare and submit to the Secretary, the National 
Task Force, the Committee on Labor and Human Resources of the Senate, 
and the Committee on Commerce of the House of Representatives, a report 
that shall contain the findings and recommendations of the Institute 
for the purposes described in subsection (b).
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated $750,000 to carry out this section.

``SEC. 2852. NATIONAL TOBACCO TASK FORCE.

    ``(a) Establishment.--The Secretary shall establish a National 
Tobacco Task Force (referred to in this subtitle as the `National Task 
Force') to foster coordination among public health agencies, academic 
bodies, and community groups that conduct or support tobacco-related 
biomedical, clinical, behavioral, health services, public health and 
community, and surveillance and epidemiology research activities.
    ``(b) Composition.--The National Task Force shall be composed of--
            ``(1) the Surgeon General;
            ``(2) the Director of the Office of Smoking and Health of 
        the Centers for Disease Control and Prevention;
            ``(3) the Administrator of the Agency for Health Care 
        Policy and Research;
            ``(4) the Director of the National Institutes of Health;
            ``(5) two representatives from non-governmental public 
        health or tobacco control organizations; and
            ``(6) two representatives from State or local government 
        public health agencies and offices.
    ``(c) Chair.--The National Task Force shall be chaired by the 
Director of the Centers for Disease Control and Prevention, or a 
designee of the Director, and shall be staffed by the Centers for 
Disease Control and Prevention.
    ``(d) Duties.--The Task Force shall--
            ``(1) in accordance with research agenda recommended under 
        section 2851, coordinate and advise tobacco-related research 
        activities among Federal public health service agencies;
            ``(2) collect and make available to States and communities, 
        through publication and other appropriate means, evidence-based 
        tobacco-related research results and recommendations and the 
        practical application of such results; and
            ``(3) report on a biennial basis to the Secretary and the 
        Committee on Labor and Human Resources of the Senate, and the 
        Committee on Commerce of the House of Representatives on the 
        current and planned activities of participating Federal 
        agencies;
    ``(e) Research Activities.--The research activities referred to in 
subsection (a) shall be designed to address tobacco-related research 
priorities, and shall include--
            ``(1) the development of effective strategies to prevent 
        the use of tobacco products among youth;
            ``(2) an outline of cost-effective, accessible, and 
        successful methods for tobacco use cessation among adults and 
        youths who want to quit;
            ``(3) the development of breakthroughs in the understanding 
        of the effects on the human body of nicotine and other non-
        tobacco constituents of tobacco products; and
            ``(4) the development of an enhanced ability to prevent and 
        treat tobacco-related diseases.

``SEC. 2853. RESEARCH ACTIVITIES OF THE CENTERS FOR DISEASE CONTROL AND 
              PREVENTION.

    ``(a) Funding.--There shall be made available from the Tobacco 
Settlement Trust Fund to carry out this section--
            ``(1) $290,000,000 for each of the first 3 fiscal years 
        after the date of enactment of this title;
            ``(2) $345,000,000 for each of the 4th and 5th fiscal years 
        after the date of enactment of this title;
            ``(3) $245,000,000 for each of the 6th and 7th fiscal years 
        after the date of enactment of this title;
            ``(4) $200,000,000 for each of the 8th and 9th fiscal years 
        after the date of enactment of this title; and
            ``(5) $145,000,000 for the 10th fiscal year after the date 
        of enactment of this title.
    ``(b) Duties.--The Director of the Centers for Disease Control and 
Prevention, working in consultation with National Task Force, shall 
carry out tobacco-related surveillance and epidemiologic studies and 
develop tobacco control and prevention strategies under this section.
    ``(c) Trigger.--No expenditures shall be made under this section 
during any fiscal year in which the annual amount appropriated for the 
Centers for Disease Control and Prevention is less than the amount so 
appropriated for the prior fiscal year.

``SEC. 2854. RESEARCH ACTIVITIES OF THE NATIONAL INSTITUTES OF HEALTH.

    ``(a) Funding.--There shall be made available from the Tobacco 
Settlement Trust Fund to carry out this section $2,500,000 for each of 
the fiscal years 1999 through 2008.
    ``(b) National Cancer Institute.--Not less than 40 percent of the 
amount made available for each fiscal year under subsection (a) shall 
be made available to the Director of the National Cancer Institute.
    ``(c) National Institute on Drug Abuse.--Not less than 30 percent 
of the amount made available for each fiscal year under subsection (a) 
shall be made available to the Director of the National Institute on 
Drug Abuse.
    ``(d) Expenditure of Funds.--Funds made available under subsection 
(a) shall be expended by the Director of the National Institutes of 
Health, the Director of the National Cancer Institute, and the Director 
of the National Institute on Drug Abuse, in consultation with the 
National Task Force, to carry out biomedical and behavioral research 
into the causes of tobacco use, diseases and conditions associated with 
tobacco use, and the development of treatments for such diseases and 
conditions.
    ``(e) Trigger.--No expenditure shall be made under subsection (a) 
during any fiscal year in which the annual amount appropriated for the 
National Institutes of Health is less than the amount so appropriated 
for the prior fiscal year.

          ``Subtitle F--Public Health Education and Promotion

``SEC. 2861. PUBLIC HEALTH EDUCATION AND PROMOTION.

    ``(a) Establishment of Board.--
            ``(1) In general.--The Secretary shall establish an 
        independent board to be known as the `Tobacco Use Prevention 
        and Cessation Board' (referred to in this section as the 
        `Board') to enter into contracts with or award grants to 
        eligible public and nonprofit private entities to carry out 
        public informational and educational activities designed to 
        reduce the use of tobacco products.
            ``(2) Appointment.--The Board shall be composed of 9 
        members to be appointed by the Secretary, of which--
                    ``(A) at least 3 such members shall be individuals 
                who are widely recognized by the general public for 
                achievement in the athletic, cultural, entertainment, 
                educational, business, or political field;
                    ``(B) at least 3 of whom shall be individuals who 
                are heads of a major public health organizations; and
                    ``(C) at least 2 of whom shall be individuals 
                recognized as experts in the field of advertising and 
                marketing.
            ``(3) Terms and vacancies.--The members of the Board shall 
        serve staggered terms as determined appropriate at the time of 
        appointment by the Secretary. Any vacancy in the Board shall 
        not affect its powers, but shall be filled in the same manner 
        as the original appointment.
            ``(4) Powers.--
                    ``(A) Hearings.--The Board may hold such hearings, 
                sit and act at such times and places, take such 
                testimony, and receive such evidence as the Board 
                considers advisable to carry out the purposes of this 
                section.
                    ``(B) Information from federal agencies.--The Board 
                may secure directly from any Federal department or 
                agency such information as the Board considers 
                necessary to carry out the provisions of this section.
            ``(5) Travel expenses.--The members of the Board shall be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for employees of agencies 
        under subchapter I of chapter 57 of title 5, United States 
        Code, while away from their homes or regular places of business 
        in the performance of services for the Board.
    ``(b) Establishment of Program.--The Secretary shall establish a 
program under which the Board may enter into contracts with or award 
grants to eligible public and nonprofit private entities to carry out 
public informational and educational activities designed to reduce the 
use of tobacco products.
    ``(c) Eligibility.--To be eligible to receive a grant under this 
section an entity shall--
            ``(1) be a--
                    ``(A) public entity or a State health department; 
                or
                    ``(B) nonprofit private entity that--
                            ``(i) is not affiliated with a tobacco 
                        product manufacturer or importer;
                            ``(ii) has a demonstrated record of working 
                        effectively to reduce tobacco product use; and
                            ``(iii) has expertise in conducting a 
                        multi-media communications campaign;
            ``(2) prepare and submit to the Secretary an application at 
        such time, in such manner, and containing such information as 
        the Secretary may require, including a description of the 
        activities to be conducted using amounts received under the 
        grant or contract;
            ``(3) provide assurances that amounts received under the 
        grant will be used in accordance with subsection (d); and
            ``(4) meet any other requirements determined appropriate by 
        the Secretary.
    ``(d) Use of Funds.--An entity that receives a grant or contract 
under this section shall use amounts provided under the grant or 
contract to conduct multi-media public educational or informational 
campaigns that are designed to discourage and de-glamorize the use of 
tobacco products. Such campaigns shall be designed to discourage the 
initiation of tobacco use by minors and encourage those using such 
products to quit.
    ``(e) Needs of Certain Populations.--In awarding grants and 
contracts under this section, the Board shall take into consideration 
the needs of particular populations.
    ``(f) Funding.--There shall be made available from the Tobacco 
Settlement Trust Fund to carry out this section, $500,000,000 for each 
of the fiscal years 1999 through 2008.''.

  TITLE III--STANDARDS TO REDUCE INVOLUNTARY EXPOSURE TO TOBACCO SMOKE

SEC. 301. STANDARDS TO REDUCE INVOLUNTARY EXPOSURE TO TOBACCO SMOKE.

    Section 6 of the Occupational Safety and Health Act of 1970 (29 
U.S.C. 655) is amended by adding at the end the following:
    ``(h) Not later than 12 months after the date of enactment of this 
subsection, the Secretary shall promulgate a final standard on indoor 
air quality in indoor work environments in accordance with subsection 
(b). Such standard shall include provisions addressing control of 
environmental tobacco smoke in both industrial and nonindustrial indoor 
or enclosed worksites.''.

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. SEVERABILITY.

    If any provision of this Act (or an amendment made by this Act) or 
the application thereof to any person or circumstance is held invalid, 
the invalidity shall not affect the other provisions of this Act (or 
amendment) and the application of such provision to other persons or 
circumstances shall not be affected thereby.
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