II 

110TH CONGRESS 

1ST SESSION S. 1027 

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

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 29, 2007 

Mr. KOHL (for himself, Mr. SPECTER, Mr. LEAHY, Mr. KYL, and Mr. SCHUMER) introduced the following bill; which was read twice and referred to 

the Committee on the Judiciary 

A BILL 

To prevent tobacco smuggling, to ensure the collection of 

all tobacco taxes, and for other purposes. 

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

3 SECTION 1. SHORT TITLE; FINDINGS; PURPOSES. 

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

5 ‘‘Prevent All Cigarette Trafficking Act of 2007’’ or 

6 ‘‘PACT Act’’. 

7 (b) FINDINGS.—Congress finds that— 

8 (1) the sale of illegal cigarettes and smokeless 

9 tobacco products significantly reduces Federal, 

10 State, and local government revenues, with Internet 

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1 sales alone accounting for billions of dollars of lost 

2 Federal, State, and local tobacco tax revenue each 

3 year; 

4 (2) Hezbollah, Hamas, al Qaeda, and other ter5 rorist organizations have profited from trafficking in 

6 illegal cigarettes or counterfeit cigarette tax stamps; 

7 (3) terrorist involvement in illicit cigarette traf8 ficking will continue to grow because of the large 

9 profits such organizations can earn; 

10 (4) the sale of illegal cigarettes and smokeless 

11 tobacco over the Internet, and through mail, fax, or 

12 phone orders, make it cheaper and easier for chil13 dren to obtain tobacco products; 

14 (5) the majority of Internet and other remote 

15 sales of cigarettes and smokeless tobacco are being 

16 made without adequate precautions to protect 

17 against sales to children, without the payment of ap18 plicable taxes, and without complying with the nomi19 nal registration and reporting requirements in exist20 ing Federal law; 

21 (6) unfair competition from illegal sales of ciga22 rettes and smokeless tobacco is taking billions of dol23 lars of sales away from law-abiding retailers 

24 throughout the United States; 

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1 (7) with rising State and local tobacco tax 

2 rates, the incentives for the illegal sale of cigarettes 

3 and smokeless tobacco have increased; 

4 (8) the number of active tobacco investigations 

5 being conducted by the Bureau of Alcohol, Tobacco, 

6 Firearms, and Explosives rose to 452 in 2005; 

7 (9) the number of Internet vendors in the 

8 United States and in foreign countries that sell ciga9 rettes and smokeless tobacco to buyers in the United 

10 States has increased from only about 40 in 2000 to 

11 more than 500 in 2005; and 

12 (10) the intrastate sale of illegal cigarettes and 

13 smokeless tobacco over the Internet has a substan14 tial effect on interstate commerce. 

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

16 (1) require Internet and other remote sellers of 

17 cigarettes and smokeless tobacco to comply with the 

18 same laws that apply to law-abiding tobacco retail19 ers; 

20 (2) create strong disincentives to illegal smug21 gling of tobacco products; 

22 (3) provide government enforcement officials 

23 with more effective enforcement tools to combat to24 bacco smuggling; 

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1 (4) make it more difficult for cigarette and 

2 smokeless tobacco traffickers to engage in and profit 

3 from their illegal activities; 

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

5 local excise taxes on cigarettes and smokeless to6 bacco; and 

7 (6) prevent and reduce youth access to inexpen8 sive cigarettes and smokeless tobacco through illegal 

9 Internet or contraband sales. 

10 SEC. 2. COLLECTION OF STATE CIGARETTE AND SMOKE11 LESS TOBACCO TAXES. 

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

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

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

15 amended by striking the first section and inserting the fol16 lowing: 

17 ‘‘SECTION 1. DEFINITIONS. 

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

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

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

21 general or other chief law enforcement officer of the 

22 State, or the designee of that officer. 

23 ‘‘(2) CIGARETTE.— 

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

25 Act, the term ‘cigarette’ shall— 

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

2 term in section 2341 of title 18, United 

3 States Code; and 

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

5 (as that term is defined in section 5702 of 

6 the Internal Revenue Code of 1986). 

7 ‘‘(B) EXCEPTION.—For purposes of this 

8 Act, the term ‘cigarette’ does not include a 

9 ‘cigar,’ as that term is defined in section 5702 

10 of the Internal Revenue Code of 1986. 

11 ‘‘(3) COMMON CARRIER.—The term ‘common 

12 carrier’ means any person (other than a local mes13 senger service or the United States Postal Service) 

14 that holds itself out to the general public as a pro15 vider for hire of the transportation by water, land, 

16 or air of merchandise, whether or not the person ac17 tually operates the vessel, vehicle, or aircraft by 

18 which the transportation is provided, between a port 

19 or place and a port or place in the United States. 

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

21 any person that purchases cigarettes or smokeless 

22 tobacco, but does not include any person lawfully op23 erating as a manufacturer, distributor, wholesaler, 

24 or retailer of cigarettes or smokeless tobacco. 

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

2 means any sale of cigarettes or smokeless tobacco to 

3 a consumer if— 

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

5 such sale by means of a telephone or other 

6 method of voice transmission, the mails, or the 

7 Internet or other online service, or the seller is 

8 otherwise not in the physical presence of the 

9 buyer when the request for purchase or order is 

10 made; or 

11 ‘‘(B) the cigarettes or smokeless tobacco 

12 are delivered by use of a common carrier, pri13 vate delivery service, or the mails, or the seller 

14 is not in the physical presence of the buyer 

15 when the buyer obtains possession of the ciga16 rettes or smokeless tobacco. 

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

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

19 ‘‘(7) INDIAN COUNTRY.—The term ‘Indian 

20 country’ has the meaning given that term in section 

21 1151 of title 18, United States Code, except that 

22 within the State of Alaska that term applies only to 

23 the Metlakatla Indian Community, Annette Island 

24 Reserve. 

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

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

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

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

5 listed pursuant to section 104 of the Federally Rec6 ognized Indian Tribe List Act of 1994 (25 U.S.C. 

7 479a–1). 

8 ‘‘(9) INTERSTATE COMMERCE.—The term 

9 ‘interstate commerce’ means commerce between a 

10 State and any place outside the State, commerce be11 tween a State and any Indian country in the State, 

12 or commerce between points in the same State but 

13 through any place outside the State or through any 

14 Indian country. 

15 ‘‘(10) PERSON.—The term ‘person’ means an 

16 individual, corporation, company, association, firm, 

17 partnership, society, State government, local govern18 ment, Indian tribal government, governmental orga19 nization of such government, or joint stock company. 

20 ‘‘(11) STATE.—The term ‘State’ means each of 

21 the several States of the United States, the District 

22 of Columbia, the Commonwealth of Puerto Rico, or 

23 any territory or possession of the United States. 

24 ‘‘(12) SMOKELESS TOBACCO.—The term 

25 ‘smokeless tobacco’ means any finely cut, ground, 

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1 powdered, or leaf tobacco, or other product con2 taining tobacco, that is intended to be placed in the 

3 oral or nasal cavity or otherwise consumed without 

4 being combusted. 

5 ‘‘(13) TOBACCO TAX ADMINISTRATOR.—The 

6 term ‘tobacco tax administrator’ means the State, 

7 local, or tribal official duly authorized to collect the 

8 tobacco tax or administer the tax law of a State, lo9 cality, or tribe, respectively. 

10 ‘‘(14) USE.—The term ‘use’, in addition to its 

11 ordinary meaning, means the consumption, storage, 

12 handling, or disposal of cigarettes or smokeless to13 bacco.’’. 

14 (b) REPORTS TO STATE TOBACCO TAX ADMINISTRA15 TORS.—Section 2 of the Jenkins Act (15 U.S.C. 376) is 

16 amended— 

17 (1) by striking ‘‘cigarettes’’ each place it ap18 pears and inserting ‘‘cigarettes or smokeless to19 bacco’’; 

20 (2) in subsection (a)— 

21 (A) in the matter preceding paragraph 

22 (1)— 

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

24 ‘‘(a)’’ 

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1 (ii) by striking ‘‘or transfers’’ and in2 serting ‘‘, transfers, or ships’’; 

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

4 country of an Indian tribe’’ after ‘‘a 

5 State’’; 

6 (iv) by striking ‘‘to other than a dis7 tributor licensed by or located in such 

8 State,’’; and 

9 (v) by striking ‘‘or transfer and ship10 ment’’ and inserting ‘‘, transfer, or ship11 ment’’; 

12 (B) in paragraph (1)— 

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

14 administrator of the State’’ and inserting 

15 ‘‘with the Attorney General of the United 

16 States and with the tobacco tax adminis17 trators of the State and place’’; and 

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

19 the following: ‘‘, as well as telephone num20 bers for each place of business, a principal 

21 electronic mail address, any website ad22 dresses, and the name, address, and tele23 phone number of an agent in the State au24 thorized to accept service on behalf of such 

25 person;’’; 

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

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

3 thereof, and the name, address, and phone 

4 number of the person delivering the shipment to 

5 the recipient on behalf of the delivery seller, 

6 with all invoice or memoranda information re7 lating to specific customers to be organized by 

8 city or town and by zip code; and’’; and 

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

10 ‘‘(3) with respect to each memorandum or in11 voice filed with a State under paragraph (2), also 

12 file copies of such memorandum or invoice with the 

13 tobacco tax administrators and chief law enforce14 ment officers of the local governments and Indian 

15 tribes operating within the borders of the State that 

16 apply their own local or tribal taxes on cigarettes or 

17 smokeless tobacco.’’; 

18 (3) in subsection (b)— 

19 (A) by inserting ‘‘PRESUMPTIVE EVI20 DENCE.—’’ after ‘‘(b)’’; 

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

22 ‘‘that’’; and 

23 (C) by striking ‘‘, and (2)’’ and all that 

24 follows and inserting a period; and 

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

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1 ‘‘(c) USE OF INFORMATION.—A tobacco tax adminis2 trator or chief law enforcement officer who receives a 

3 memorandum or invoice under paragraph (2) or (3) of 

4 subsection (a) shall use such memorandum or invoice sole5 ly for the purposes of the enforcement of this Act and the 

6 collection of any taxes owed on related sales of cigarettes 

7 and smokeless tobacco, and shall keep confidential any 

8 personal information in such memorandum or invoice not 

9 otherwise required for such purposes.’’. 

10 (c) REQUIREMENTS FOR DELIVERY SALES.—The 

11 Jenkins Act is amended by inserting after section 2 the 

12 following: 

13 ‘‘SEC. 2A. DELIVERY SALES. 

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

15 into a specific State and place, each delivery seller shall 

16 comply with— 

17 ‘‘(1) the shipping requirements set forth in sub18 section (b); 

19 ‘‘(2) the recordkeeping requirements set forth 

20 in subsection (c); 

21 ‘‘(3) all State, local, tribal, and other laws gen22 erally applicable to sales of cigarettes or smokeless 

23 tobacco as if such delivery sales occurred entirely 

24 within the specific State and place, including laws 

25 imposing— 

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1 ‘‘(A) excise taxes; 

2 ‘‘(B) licensing and tax-stamping require3 ments; 

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

5 ‘‘(D) other payment obligations or legal re6 quirements relating to the sale, distribution, or 

7 delivery of cigarettes or smokeless tobacco; and 

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

9 subsection (d). 

10 ‘‘(b) SHIPPING AND PACKAGING.— 

11 ‘‘(1) REQUIRED STATEMENT.—For any ship12 ping package containing cigarettes or smokeless to13 bacco, the delivery seller shall include on the bill of 

14 lading, if any, and on the outside of the shipping 

15 package, on the same surface as the delivery ad16 dress, a clear and conspicuous statement providing 

17 as follows: ‘CIGARETTES/SMOKELESS TO18 BACCO: FEDERAL LAW REQUIRES THE PAY19 MENT OF ALL APPLICABLE EXCISE TAXES, 

20 AND COMPLIANCE WITH APPLICABLE LI21 CENSING AND TAX-STAMPING OBLIGA22 TIONS’. 

23 ‘‘(2) FAILURE TO LABEL.—Any shipping pack24 age described in paragraph (1) that is not labeled in 

25 accordance with that paragraph shall be treated as 

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1 nondeliverable matter by a common carrier or other 

2 delivery service, if the common carrier or other deliv3 ery service knows or should know the package con4 tains cigarettes or smokeless tobacco. If a common 

5 carrier or other delivery service believes a package is 

6 being submitted for delivery in violation of para7 graph (1), it may require the person submitting the 

8 package for delivery to establish that it is not being 

9 sent in violation of paragraph (1) before accepting 

10 the package for delivery. Nothing in this paragraph 

11 shall require the common carrier or other delivery 

12 service to open any package to determine its con13 tents. 

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

15 shall not sell, offer for sale, deliver, or cause to be 

16 delivered in any single sale or single delivery any 

17 cigarettes or smokeless tobacco weighing more than 

18 10 pounds. 

19 ‘‘(4) AGE VERIFICATION.— 

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

21 other provision of law, a delivery seller who 

22 mails or ships tobacco products— 

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

24 be delivered any tobacco products to a per25 son under the minimum age required for 

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1 the legal sale or purchase of tobacco prod2 ucts, as determined by the applicable law 

3 at the place of delivery; 

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

5 shipping that requires— 

6 ‘‘(I) the purchaser placing the 

7 delivery sale order, or an adult who is 

8 at least the minimum age required for 

9 the legal sale or purchase of tobacco 

10 products, as determined by the appli11 cable law at the place of delivery, to 

12 sign to accept delivery of the shipping 

13 container at the delivery address; and 

14 ‘‘(II) the person who signs to ac15 cept delivery of the shipping container 

16 to provide proof, in the form of a 

17 valid, government-issued identification 

18 bearing a photograph of the indi19 vidual, that the person is at least the 

20 minimum age required for the legal 

21 sale or purchase of tobacco products, 

22 as determined by the applicable law at 

23 the place of delivery; and 

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

25 order from a person without— 

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1 ‘‘(I) obtaining the full name, 

2 birth date, and residential address of 

3 that person; and 

4 ‘‘(II) verifying the information 

5 provided in subclause (I), through the 

6 use of a commercially available data7 base or aggregate of databases, con8 sisting primarily of data from govern9 ment sources, that are regularly used 

10 by government and businesses for the 

11 purpose of age and identity 

12 verification and authentication, to en13 sure that the purchaser is at least the 

14 minimum age required for the legal 

15 sale or purchase of tobacco products, 

16 as determined by the applicable law at 

17 the place of delivery. 

18 ‘‘(B) LIMITATION.—No database being 

19 used for age and identity verification under 

20 subparagraph (A)(iii) shall be in the possession 

21 or under the control of the delivery seller, or be 

22 subject to any changes or supplementation by 

23 the delivery seller. 

24 ‘‘(c) RECORDS.— 

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

2 keep a record of any delivery sale, including all of 

3 the information described in section 2(a)(2), orga4 nized by the State, and within such State, by the 

5 city or town and by zip code, into which such deliv6 ery sale is so made. 

7 ‘‘(2) RECORD RETENTION.—Records of a deliv8 ery sale shall be kept as described in paragraph (1) 

9 in the year in which the delivery sale is made and 

10 for the next 4 years. 

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

12 under paragraph (1) shall be made available to to13 bacco tax administrators of the States, to local gov14 ernments and Indian tribes that apply their own 

15 local or tribal taxes on cigarettes or smokeless to16 bacco, to the attorneys general of the States, to the 

17 chief law enforcement officers of such local govern18 ments and Indian tribes, and to the Attorney Gen19 eral of the United States in order to ensure the com20 pliance of persons making delivery sales with the re21 quirements of this Act. 

22 ‘‘(d) DELIVERY.— 

23 ‘‘(1) IN GENERAL.—Except as provided in para24 graph (2), no delivery seller may sell or deliver to 

25 any consumer, or tender to any common carrier or 

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1 other delivery service, any cigarettes or smokeless to2 bacco pursuant to a delivery sale unless, in advance 

3 of the sale, delivery, or tender— 

4 ‘‘(A) any cigarette or smokeless tobacco ex5 cise tax that is imposed by the State in which 

6 the cigarettes or smokeless tobacco are to be 

7 delivered has been paid to the State; 

8 ‘‘(B) any cigarette or smokeless tobacco 

9 excise tax that is imposed by the local govern10 ment of the place in which the cigarettes or 

11 smokeless tobacco are to be delivered has been 

12 paid to the local government; and 

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

14 that such excise tax has been paid are properly 

15 affixed or applied to the cigarettes or smokeless 

16 tobacco. 

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

18 apply to a delivery sale of smokeless tobacco if the 

19 law of the State or local government of the place 

20 where the smokeless tobacco is to be delivered re21 quires or otherwise provides that delivery sellers col22 lect the excise tax from the consumer and remit the 

23 excise tax to the State or local government, and the 

24 delivery seller complies with the requirement. 

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1 ‘‘(e) LIST OF UNREGISTERED OR NONCOMPLIANT

2 DELIVERY SELLERS.— 

3 ‘‘(1) IN GENERAL.— 

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

5 days after this subsection goes into effect under 

6 the Prevent All Cigarette Trafficking Act of 

7 2007, the Attorney General of the United 

8 States shall compile a list of delivery sellers of 

9 cigarettes or smokeless tobacco that have not 

10 registered with the Attorney General, pursuant 

11 to section 2(a) or that are otherwise not in 

12 compliance with this Act, and— 

13 ‘‘(i) distribute the list to— 

14 ‘‘(I) the attorney general and tax 

15 administrator of every State; 

16 ‘‘(II) common carriers and other 

17 persons that deliver small packages to 

18 consumers in interstate commerce, in19 cluding the United States Postal Serv20 ice; and 

21 ‘‘(III) at the discretion of the At22 torney General of the United States, 

23 to any other persons; and 

24 ‘‘(ii) publicize and make the list avail25 able to any other person engaged in the 

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1 business of interstate deliveries or who de2 livers cigarettes or smokeless tobacco in or 

3 into any State. 

4 ‘‘(B) LIST CONTENTS.—To the extent 

5 known, the Attorney General of the United 

6 States shall include, for each delivery seller on 

7 the list described in subparagraph (A)— 

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

9 in the transaction of its business or on 

10 packages delivered to customers; 

11 ‘‘(ii) all addresses from which the de12 livery seller does business or ships ciga13 rettes or smokeless tobacco; 

14 ‘‘(iii) the website addresses, primary 

15 e-mail address, and phone number of the 

16 delivery seller; and 

17 ‘‘(iv) any other information that the 

18 Attorney General determines would facili19 tate compliance with this subsection by re20 cipients of the list. 

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

22 the United States shall update and distribute 

23 the list at least once every 4 months, and may 

24 distribute the list and any updates by regular 

25 mail, electronic mail, or any other reasonable 

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1 means, or by providing recipients with access to 

2 the list through a nonpublic website that the 

3 Attorney General of the United States regularly 

4 updates. 

5 ‘‘(D) STATE, LOCAL, OR TRIBAL ADDI6 TIONS.—The Attorney General of the United 

7 States shall include in the list under subpara8 graph (A) any noncomplying delivery sellers 

9 identified by any State, local, or tribal govern10 ment under paragraph (5), and shall distribute 

11 the list to the attorney general or chief law en12 forcement official and the tax administrator of 

13 any government submitting any such informa14 tion and to any common carriers or other per15 sons who deliver small packages to consumers 

16 identified by any government pursuant to para17 graph (5). 

18 ‘‘(E) CONFIDENTIALITY.—The list distrib19 uted pursuant to subparagraph (A) shall be 

20 confidential, and any person receiving the list 

21 shall maintain the confidentiality of the list but 

22 may deliver the list, for enforcement purposes, 

23 to any government official or to any common 

24 carrier or other person that delivers tobacco 

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1 ing in this section shall prohibit a common car2 rier, the United States Postal Service, or any 

3 other person receiving the list from discussing 

4 with the listed delivery sellers the delivery sell5 ers’ inclusion on the list and the resulting ef6 fects on any services requested by such listed 

7 delivery seller. 

8 ‘‘(2) PROHIBITION ON DELIVERY.— 

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

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

11 distribution or availability of the list under 

12 paragraph (1)(A), no person who receives the 

13 list under paragraph (1), and no person who 

14 delivers cigarettes or smokeless tobacco to con15 sumers, shall knowingly complete, cause to be 

16 completed, or complete its portion of a delivery 

17 of any package for any person whose name and 

18 address are on the list, unless— 

19 ‘‘(i) the person making the delivery 

20 knows or believes in good faith that the 

21 item does not include cigarettes or smoke22 less tobacco; 

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

24 lawfully engaged in the business of manumstockstill on PROD1PC66 with BILLS

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1 facturing, distributing, or selling cigarettes 

2 or smokeless tobacco; or 

3 ‘‘(iii) the package being delivered 

4 weighs more than 100 pounds and the per5 son making the delivery does not know or 

6 have reasonable cause to believe that the 

7 package contains cigarettes or smokeless 

8 tobacco. 

9 ‘‘(B) IMPLEMENTATION OF UPDATES.— 

10 Commencing on the date that is 30 days after 

11 the date of the distribution or availability of 

12 any updates or corrections to the list under 

13 paragraph (1), all recipients and all common 

14 carriers or other persons that deliver cigarettes 

15 or smokeless tobacco to consumers shall be sub16 ject to subparagraph (A) in regard to such cor17 rections or updates. 

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

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

20 common carrier or other delivery service delays 

21 or interrupts the delivery of a package it has in 

22 its possession because it determines or has rea23 son to believe that the person ordering the de24 livery is on a list distributed under paragraph 

25 (1)— 

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1 ‘‘(i) the person ordering the delivery 

2 shall be obligated to pay— 

3 ‘‘(I) the common carrier or other 

4 delivery service as if the delivery of 

5 the package had been timely com6 pleted; and 

7 ‘‘(II) if the package is not deliv8 erable, any reasonable additional fee 

9 or charge levied by the common car10 rier or other delivery service to cover 

11 its extra costs and inconvenience and 

12 to serve as a disincentive against such 

13 noncomplying delivery orders; and 

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

15 to be deliverable, the common carrier or 

16 other delivery service shall, in its discre17 tion, either provide the package and its 

18 contents to a Federal, State, or local law 

19 enforcement agency or destroy the package 

20 and its contents. 

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

22 other delivery service shall maintain, for a pe23 riod of 5 years, any records kept in the ordi24 nary course of business relating to any deliv25 eries interrupted pursuant to this paragraph 

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1 and provide that information, upon request, to 

2 the Attorney General of the United States or to 

3 the attorney general or chief law enforcement 

4 official or tax administrator of any State, local, 

5 or tribal government. 

6 ‘‘(C) CONFIDENTIALITY.—Any person re7 ceiving records under subparagraph (B) shall 

8 use such records solely for the purposes of the 

9 enforcement of this Act and the collection of 

10 any taxes owed on related sales of cigarettes 

11 and smokeless tobacco, and the person receiving 

12 records under subparagraph (B) shall keep con13 fidential any personal information in such 

14 records not otherwise required for such pur15 poses. 

16 ‘‘(4) PREEMPTION.— 

17 ‘‘(A) IN GENERAL.—No State, local, or 

18 tribal government, nor any political authority of 

19 2 or more State, local, or tribal governments, 

20 may enact or enforce any law or regulation re21 lating to delivery sales that restricts deliveries 

22 of cigarettes or smokeless tobacco to consumers 

23 by common carriers or other delivery services 

24 on behalf of delivery sellers by— 

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1 ‘‘(i) requiring that the common carrier 

2 or other delivery service verify the age or 

3 identity of the consumer accepting the de4 livery by requiring the person who signs to 

5 accept delivery of the shipping container to 

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

8 photograph of the individual, that such 

9 person is at least the minimum age re10 quired for the legal sale or purchase of to11 bacco products, as determined by either 

12 State or local law at the place of delivery; 

13 ‘‘(ii) requiring that the common car14 rier or other delivery service obtain a sig15 nature from the consumer accepting the 

16 delivery; 

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

19 applicable taxes have been paid; 

20 ‘‘(iv) requiring that packages delivered 

21 by the common carrier or other delivery 

22 service contain any particular labels, no23 tice, or markings; or 

24 ‘‘(v) prohibiting common carriers or 

25 other delivery services from making delivmstockstill on PROD1PC66 with BILLS

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1 eries on the basis of whether the delivery 

2 seller is or is not identified on any list of 

3 delivery sellers maintained and distributed 

4 by any entity other than the Federal Gov5 ernment. 

6 ‘‘(B) RELATIONSHIP TO OTHER LAWS.— 

7 Nothing in this paragraph shall be construed to 

8 prohibit, expand, restrict, or otherwise amend 

9 or modify— 

10 ‘‘(i) section 14501(c)(1) or 

11 41713(b)(4) of title 49, United States 

12 Code; 

13 ‘‘(ii) any other restrictions in Federal 

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

15 governments to regulate common carriers; 

16 or 

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

18 tribal law regulating common carriers that 

19 falls within the provisions of chapter 49 of 

20 the United States Code, sections 

21 14501(c)(2) or 41713(b)(4)(B). 

22 ‘‘(C) STATE LAWS PROHIBITING DELIVERY

23 SALES.—Nothing in the Prevent All Cigarette 

24 Trafficking Act of 2007, or the amendments 

25 made by that Act, may be construed to preempt 

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1 or supersede State laws prohibiting the delivery 

2 sale, or the shipment or delivery pursuant to a 

3 delivery sale, of cigarettes or smokeless tobacco 

4 to individual consumers. 

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

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

7 tribal government shall provide the Attorney 

8 General of the United States with— 

9 ‘‘(i) all known names, addresses, 

10 website addresses, and other primary con11 tact information of any delivery seller that 

12 offers for sale or makes sales of cigarettes 

13 or smokeless tobacco in or into the State, 

14 locality, or tribal land but has failed to 

15 register with or make reports to the re16 spective tax administrator, as required by 

17 this Act, or that has been found in a legal 

18 proceeding to have otherwise failed to com19 ply with this Act; and 

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

21 other persons who make deliveries of ciga22 rettes or smokeless tobacco in or into the 

23 State, locality, or tribal lands. 

24 ‘‘(B) UPDATES.—Any government pro25 viding a list to the Attorney General of the 

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1 United States under subparagraph (A) shall 

2 also provide updates and corrections every 4 

3 months until such time as such government no4 tifies the Attorney General of the United States 

5 in writing that such government no longer de6 sires to submit such information to supplement 

7 the list maintained and distributed by the At8 torney General of the United States under 

9 paragraph (1). 

10 ‘‘(C) REMOVAL AFTER WITHDRAWAL.— 

11 Upon receiving written notice that a govern12 ment no longer desires to submit information 

13 under subparagraph (A), the Attorney General 

14 of the United States shall remove from the list 

15 under paragraph (1) any persons that are on 

16 the list solely because of such government’s 

17 prior submissions of its list of noncomplying de18 livery sellers of cigarettes or smokeless tobacco 

19 or its subsequent updates and corrections. 

20 ‘‘(6) DEADLINE TO INCORPORATE ADDI21 TIONS.—The Attorney General of the United States 

22 shall— 

23 ‘‘(A) include any delivery seller identified 

24 and submitted by a State, local, or tribal gov25 ernment under paragraph (5) in any list or upmstockstill on PROD1PC66 with BILLS

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1 date that is distributed or made available under 

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

3 days after the date on which the information is 

4 received by the Attorney General of the United 

5 States; and 

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

7 any common carrier or other person who makes 

8 deliveries of cigarettes or smokeless tobacco 

9 that has been identified and submitted by an10 other government, pursuant to paragraph (5). 

11 ‘‘(7) NOTICE TO DELIVERY SELLERS.—Not 

12 later than 14 days prior to including any delivery 

13 seller on the initial list distributed or made available 

14 under paragraph (1), or on any subsequent list or 

15 update for the first time, the Attorney General of 

16 the United States shall make a reasonable attempt 

17 to send notice to the delivery seller by letter, elec18 tronic mail, or other means that the delivery seller 

19 is being placed on such list or update, with that no20 tice citing the relevant provisions of this Act. 

21 ‘‘(8) LIMITATIONS.— 

22 ‘‘(A) IN GENERAL.—Any common carrier 

23 or other person making a delivery subject to 

24 this subsection shall not be required or other25 wise obligated to— 

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1 ‘‘(i) determine whether any list dis2 tributed or made available under para3 graph (1) is complete, accurate, or up-to4 date; 

5 ‘‘(ii) determine whether a person or6 dering a delivery is in compliance with this 

7 Act; or 

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

9 Act, any package being delivered to deter10 mine its contents. 

11 ‘‘(B) ALTERNATE NAMES.—Any common 

12 carrier or other person making a delivery sub13 ject to this subsection shall not be required or 

14 otherwise obligated to make any inquiries or 

15 otherwise determine whether a person ordering 

16 a delivery is a delivery seller on the list under 

17 paragraph (1) who is using a different name or 

18 address in order to evade the related delivery 

19 restrictions, but shall not knowingly deliver any 

20 packages to consumers for any such delivery 

21 seller who the common carrier or other delivery 

22 service knows is a delivery seller who is on the 

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

24 name or address to evade the delivery restric25 tions of paragraph (2). 

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

2 person in the business of delivering packages on 

3 behalf of other persons shall not be subject to 

4 any penalty under section 14101(a) of title 49, 

5 United States Code, or any other provision of 

6 law for— 

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

8 or any deliveries at all, on behalf of any 

9 person on the list under paragraph (1); 

10 ‘‘(ii) not, as a matter of regular prac11 tice and procedure, making any deliveries, 

12 or any deliveries in certain States, of any 

13 cigarettes or smokeless tobacco for any 

14 person or for any person not in the busi15 ness of manufacturing, distributing, or 

16 selling cigarettes or smokeless tobacco; or 

17 ‘‘(iii) delaying or not making a deliv18 ery for any person because of reasonable 

19 efforts to comply with this Act. 

20 ‘‘(D) OTHER LIMITS.—Section 2 and sub21 sections (a), (b), (c), and (d) of this section 

22 shall not be interpreted to impose any respon23 sibilities, requirements, or liability on common 

24 carriers. 

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1 ‘‘(f) PRESUMPTION.—For purposes of this Act, a de2 livery sale shall be deemed to have occurred in the State 

3 and place where the buyer obtains personal possession of 

4 the cigarettes or smokeless tobacco, and a delivery pursu5 ant to a delivery sale is deemed to have been initiated or 

6 ordered by the delivery seller.’’. 

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

8 striking section 3 and inserting the following: 

9 ‘‘SEC. 3. PENALTIES. 

10 ‘‘(a) CRIMINAL PENALTIES.— 

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graph (2), whoever violates any provision of this Act 

13 shall be guilty of a felony and shall be imprisoned 

14 not more than 3 years, fined under title 18, United 

15 States Code, or both. 

16 ‘‘(2) EXCEPTIONS.— 

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

18 not apply to a State, local, or tribal govern19 ment. 

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

21 carrier or independent delivery service, or em22 ployee of a common carrier or independent de23 livery service, shall be subject to criminal pen24 alties under paragraph (1) for a violation of 

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1 section 2A(e) only if the violation is committed 

2 intentionally— 

3 ‘‘(i) as consideration for the receipt 

4 of, or as consideration for a promise or 

5 agreement to pay, anything of pecuniary 

6 value; or 

7 ‘‘(ii) for the purpose of assisting a de8 livery seller to violate, or otherwise evading 

9 compliance with, section 2A. 

10 ‘‘(b) CIVIL PENALTIES.— 

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graph (3), whoever violates any provision of this Act 

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

14 to exceed— 

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

16 greater of— 

17 ‘‘(i) $5,000 in the case of the first 

18 violation, or $10,000 for any other viola19 tion; or 

20 ‘‘(ii) for any violation, 2 percent of 

21 the gross sales of cigarettes or smokeless 

22 tobacco of such person during the 1-year 

23 period ending on the date of the violation. 

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

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

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1 first violation, or $5,000 for any violation with2 in 1 year of a prior violation. 

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

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

5 Act shall be imposed in addition to any criminal 

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

7 equitable relief, or injunctive relief awarded by the 

8 court, including the payment of any unpaid taxes to 

9 the appropriate Federal, State, local, or tribal gov10 ernments. 

11 ‘‘(3) EXCEPTIONS.— 

12 ‘‘(A) DELIVERY VIOLATIONS.—An em13 ployee of a common carrier or independent de14 livery service shall be subject to civil penalties 

15 under paragraph (1) for a violation of section 

16 2A(e) only if the violation is committed inten17 tionally— 

18 ‘‘(i) as consideration for the receipt 

19 of, or as consideration for a promise or 

20 agreement to pay, anything of pecuniary 

21 value; or 

22 ‘‘(ii) for the purpose of assisting a de23 livery seller to violate, or otherwise evading 

24 compliance with, section 2A. 

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1 ‘‘(B) OTHER LIMITATIONS.—No common 

2 carrier or independent delivery service shall be 

3 subject to civil penalties under paragraph (1) 

4 for a violation of section 2A(e) if— 

5 ‘‘(i) the common carrier or inde6 pendent delivery service has implemented 

7 and enforces effective policies and practices 

8 for complying with that section; or 

9 ‘‘(ii) an employee of the common car10 rier or independent delivery service who 

11 physically receives and processes orders, 

12 picks up packages, processes packages, or 

13 makes deliveries, takes actions that are 

14 outside the scope of employment of the em15 ployee in the course of the violation, or 

16 that violate the implemented and enforced 

17 policies of the common carrier or inde18 pendent delivery service described in clause 

19 (i).’’. 

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

21 striking section 4 and inserting the following: 

22 ‘‘SEC. 4. ENFORCEMENT. 

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

24 courts shall have jurisdiction to prevent and restrain viola25 tions of this Act and to provide other appropriate injuncmstockstill on PROD1PC66 with BILLS

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•S 1027 IS

1 tive or equitable relief, including money damages, for such 

2 violations. 

3 ‘‘(b) AUTHORITY OF THE ATTORNEY GENERAL.— 

4 The Attorney General of the United States shall admin5 ister and enforce the provisions of this Act. 

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

7 ‘‘(1) IN GENERAL.— 

8 ‘‘(A) STANDING.—A State, through its at9 torney general (or a designee thereof), or a 

10 local government or Indian tribe that levies a 

11 tax subject to section 2A(a)(3), through its 

12 chief law enforcement officer (or a designee 

13 thereof), may bring an action in a United 

14 States district court to prevent and restrain vio15 lations of this Act by any person (or by any 

16 person controlling such person) or to obtain any 

17 other appropriate relief from any person (or 

18 from any person controlling such person) for 

19 violations of this Act, including civil penalties, 

20 money damages, and injunctive or other equi21 table relief. 

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

23 this Act shall be deemed to abrogate or con24 stitute a waiver of any sovereign immunity of a 

25 State or local government or Indian tribe 

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1 against any unconsented lawsuit under this Act, 

2 or otherwise to restrict, expand, or modify any 

3 sovereign immunity of a State or local govern4 ment or Indian tribe. 

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

6 through its attorney general, or a local government 

7 or Indian tribe that levies a tax subject to section 

8 2A(a)(3), through its chief law enforcement officer 

9 (or a designee thereof), may provide evidence of a 

10 violation of this Act by any person not subject to 

11 State, local, or tribal government enforcement ac12 tions for violations of this Act to the Attorney Gen13 eral of the United States or a United States attor14 ney, who shall take appropriate actions to enforce 

15 the provisions of this Act. 

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

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

18 separate account in the Treasury known as the 

19 ‘PACT Anti-Trafficking Fund’. Notwith20 standing any other provision of law and subject 

21 to subparagraph (B), an amount equal to 50 

22 percent of any criminal and civil penalties col23 lected by the United States Government in en24 forcing the provisions of this Act shall be trans25 ferred into the PACT Anti-Trafficking Fund 

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•S 1027 IS

1 and shall be available to the Attorney General 

2 of the United States for purposes of enforcing 

3 the provisions of this Act and other laws relat4 ing to contraband tobacco products. 

5 ‘‘(B) ALLOCATION OF FUNDS.—Of the 

6 amount available to the Attorney General under 

7 subparagraph (A), not less than 50 percent 

8 shall be made available only to the agencies and 

9 offices within the Department of Justice that 

10 were responsible for the enforcement actions in 

11 which the penalties concerned were imposed or 

12 for any underlying investigations. 

13 ‘‘(4) NONEXCLUSIVITY OF REMEDY.— 

14 ‘‘(A) IN GENERAL.—The remedies avail15 able under this section and section 3 are in ad16 dition to any other remedies available under 

17 Federal, State, local, tribal, or other law. 

18 ‘‘(B) STATE COURT PROCEEDINGS.—Noth19 ing in this Act shall be construed to expand, re20 strict, or otherwise modify any right of an au21 thorized State official to proceed in State court, 

22 or take other enforcement actions, on the basis 

23 of an alleged violation of State or other law. 

24 ‘‘(C) TRIBAL COURT PROCEEDINGS.— 

25 Nothing in this Act shall be construed to exmstockstill on PROD1PC66 with BILLS

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•S 1027 IS

1 pand, restrict, or otherwise modify any right of 

2 an authorized Indian tribal government official 

3 to proceed in tribal court, or take other enforce4 ment actions, on the basis of an alleged viola5 tion of tribal law. 

6 ‘‘(D) LOCAL GOVERNMENT ENFORCE7 MENT.—Nothing in this Act shall be construed 

8 to expand, restrict, or otherwise modify any 

9 right of an authorized local government official 

10 to proceed in State court, or take other enforce11 ment actions, on the basis of an alleged viola12 tion of local or other law. 

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

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

15 Internal Revenue Code of 1986 (regarding permitting of 

16 manufacturers and importers of tobacco products and ex17 port warehouse proprietors) may bring an action in a 

18 United States district court to prevent and restrain viola19 tions of this Act by any person (or by any person control20 ling such person) other than a State, local, or tribal gov21 ernment. 

22 ‘‘(e) NOTICE.— 

23 ‘‘(1) PERSONS DEALING IN TOBACCO PROD24 UCTS.—Any person who commences a civil action 

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•S 1027 IS

1 under subsection (d) shall inform the Attorney Gen2 eral of the United States of the action. 

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

4 is the sense of Congress that the attorney general of 

5 any State, or chief law enforcement officer of any lo6 cality or tribe, that commences a civil action under 

7 this section should inform the Attorney General of 

8 the United States of the action. 

9 ‘‘(f) PUBLIC NOTICE.— 

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

11 the United States shall make available to the public, 

12 by posting such information on the Internet and by 

13 other appropriate means, information regarding all 

14 enforcement actions undertaken by the Attorney 

15 General or United States attorneys, or reported to 

16 the Attorney General, under this section, including 

17 information regarding the resolution of such actions 

18 and how the Attorney General and the United States 

19 attorney have responded to referrals of evidence of 

20 violations pursuant to subsection (c)(2). 

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

22 General shall submit to Congress each year a report 

23 containing the information described in paragraph 

24 (1).’’. 

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1 SEC. 3. TREATMENT OF CIGARETTES AND SMOKELESS TO2 BACCO AS NONMAILABLE MATTER. 

3 Section 1716 of title 18, United States Code, is 

4 amended— 

5 (1) by redesignating subsections (j) and (k) as 

6 subsections (k) and (l), respectively; and 

7 (2) by inserting after subsection (i) the fol8 lowing: 

9 ‘‘(j) TOBACCO PRODUCTS.— 

10 ‘‘(1) PROHIBITION.— 

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

12 subparagraphs (C) and (D), all cigarettes (as 

13 that term is defined in section 1(2) of the Act 

14 of October 19, 1949 (15 U.S.C. 375; commonly 

15 referred to as the ‘Jenkins Act’)) and smokeless 

16 tobacco (as that term is defined in section 

17 1(12) of that Act), are nonmailable and shall 

18 not be deposited in or carried through the 

19 mails. The United States Postal Service shall 

20 not accept for delivery or transmit through the 

21 mails any package that it knows or has reason22 able cause to believe contains any cigarettes or 

23 smokeless tobacco made nonmailable by this 

24 subsection. 

25 ‘‘(B) REASONABLE CAUSE TO BELIEVE.— 

26 For purposes of this section, notification to the 

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•S 1027 IS

1 United States Postal Service by the Attorney 

2 General, a United States attorney, or a State 

3 Attorney General that an individual or entity is 

4 primarily engaged in the business of transmit5 ting cigarettes or smokeless tobacco made non6 mailable by this section shall constitute reason7 able cause to believe that any packages pre8 sented to the United States Postal Service by 

9 such individual or entity contain nonmailable 

10 cigarettes or smokeless tobacco. 

11 ‘‘(C) CIGARS.—Subparagraph (A) shall not 

12 apply to cigars (as that term is defined in sec13 tion 5702(a) of the Internal Revenue Code of 

14 1986). 

15 ‘‘(D) GEOGRAPHIC EXCEPTION.—Subpara16 graph (A) shall not apply to mailings within or 

17 into any State that is not contiguous with at 

18 least 1 other State of the United States. For 

19 purposes of this paragraph, ‘State’ means any 

20 of the 50 States or the District of Columbia. 

21 ‘‘(2) PACKAGING EXCEPTIONS INAPPLICABLE.— 

22 Subsection (b) shall not apply to any tobacco prod23 uct made nonmailable by this subsection. 

24 ‘‘(3) SEIZURE AND FORFEITURE.—Any ciga25 rettes or smokeless tobacco made nonmailable by 

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•S 1027 IS

1 this subsection that are deposited in the mails shall 

2 be subject to seizure and forfeiture, and any tobacco 

3 products so seized and forfeited shall either be de4 stroyed or retained by Government officials for the 

5 detection or prosecution of crimes or related inves6 tigations and then destroyed. 

7 ‘‘(4) ADDITIONAL PENALTIES.—In addition to 

8 any other fines and penalties imposed by this chap9 ter for violations of this section, any person violating 

10 this subsection shall be subject to an additional pen11 alty in the amount of 10 times the retail value of the 

12 nonmailable cigarettes or smokeless tobacco, includ13 ing all Federal, State, and local taxes. 

14 ‘‘(5) USE OF PENALTIES.—There is established 

15 a separate account in the Treasury known as the 

16 ‘PACT Postal Service Fund’. Notwithstanding any 

17 other provision of law, an amount equal to 50 per18 cent of any criminal and civil fines or monetary pen19 alties collected by the United States Government in 

20 enforcing the provisions of this subsection shall be 

21 transferred into the PACT Postal Service Fund and 

22 shall be available to the Postmaster General for the 

23 purpose of enforcing the provisions of this sub24 section.’’. 

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1 SEC. 4. COMPLIANCE WITH MODEL STATUTE OR QUALI2 FYING STATUTE. 

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

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

5 sale, or cause to be sold in, delivered to, or placed for deliv6 ery sale in a State that is a party to the Master Settlement 

7 Agreement, any cigarette manufactured by a Tobacco 

8 Product Manufacturer that is not in full compliance with 

9 the terms of the Model Statute or Qualifying Statute en10 acted by such State requiring funds to be placed into a 

11 qualified escrow account under specified conditions, or any 

12 regulations promulgated pursuant to such statute. 

13 (b) JURISDICTION TO PREVENT AND RESTRAIN VIO14 LATIONS.— 

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

16 courts shall have jurisdiction to prevent and restrain 

17 violations of subsection (a) in accordance with this 

18 subsection. 

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

20 its attorney general, may bring an action in the 

21 United States district courts to prevent and restrain 

22 violations of subsection (a) by any person (or by any 

23 person controlling such person). 

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

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

26 shall be entitled to reasonable attorney fees from a 

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•S 1027 IS

1 person found to have willfully and knowingly violated 

2 subsection (a). 

3 (4) NONEXCLUSIVITY OF REMEDIES.—The rem4 edy available under paragraph (2) is in addition to 

5 any other remedies available under Federal, State, 

6 or other law. No provision of this Act or any other 

7 Federal law shall be held or construed to prohibit or 

8 preempt the Master Settlement Agreement, the 

9 Model Statute (as defined in the Master Settlement 

10 Agreement), any legislation amending or complemen11 tary to the Model Statute in effect as of June 1, 

12 2006, or any legislation substantially similar to such 

13 existing, amending, or complementary legislation 

14 hereinafter enacted. 

15 (5) OTHER ENFORCEMENT ACTIONS.—Nothing 

16 in this subsection shall be construed to prohibit an 

17 authorized State official from proceeding in State 

18 court or taking other enforcement actions on the 

19 basis of an alleged violation of State or other law. 

20 (6) AUTHORITY OF THE ATTORNEY GEN21 ERAL.—The Attorney General of the United States 

22 may administer and enforce subsection (a). 

23 (c) DEFINITIONS.—In this section the following defi24 nitions apply: 

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

2 means any sale of cigarettes or smokeless tobacco to 

3 a consumer if— 

4 (A) the consumer submits the order for 

5 such sale by means of a telephone or other 

6 method of voice transmission, the mails, or the 

7 Internet or other online service, or the seller is 

8 otherwise not in the physical presence of the 

9 buyer when the request for purchase or order is 

10 made; or 

11 (B) the cigarettes or smokeless tobacco are 

12 delivered by use of a common carrier, private 

13 delivery service, or the mails, or the seller is not 

14 in the physical presence of the buyer when the 

15 buyer obtains possession of the cigarettes or 

16 smokeless tobacco. 

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

18 each of the following: 

19 (A) SHIPPING OR CONSIGNING.—Any per20 son in the United States to whom nontaxpaid 

21 tobacco products manufactured in a foreign 

22 country, Puerto Rico, the Virgin Islands, or a 

23 possession of the United States are shipped or 

24 consigned. 

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•S 1027 IS

1 (B) MANUFACTURING WAREHOUSES.—Any 

2 person who removes cigars or cigarettes for sale 

3 or consumption in the United States from a 

4 customs-bonded manufacturing warehouse. 

5 (C) UNLAWFUL IMPORTING.—Any person 

6 who smuggles or otherwise unlawfully brings to7 bacco products into the United States. 

8 (3) MASTER SETTLEMENT AGREEMENT.—The 

9 term ‘‘Master Settlement Agreement’’ means the 

10 agreement executed November 23, 1998, between 

11 the attorneys general of 46 States, the District of 

12 Columbia, the Commonwealth of Puerto Rico, and 4 

13 territories of the United States and certain tobacco 

14 manufacturers. 

15 (4) MODEL STATUTE; QUALIFYING STATUTE.— 

16 The terms ‘‘Model Statute’’ and ‘‘Qualifying Stat17 ute’’ means a statute as defined in section 

18 IX(d)(2)(e) of the Master Settlement Agreement. 

19 (5) TOBACCO PRODUCT MANUFACTURER.—The 

20 term ‘‘Tobacco Product Manufacturer’’ has the 

21 meaning given that term in section II(uu) of the 

22 Master Settlement Agreement. 

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•S 1027 IS

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

2 FIREARMS, AND EXPLOSIVES OF RECORDS 

3 OF CERTAIN CIGARETTE AND SMOKELESS 

4 TOBACCO SELLERS. 

5 (a) IN GENERAL.—Any officer of the Bureau of Alco6 hol, Tobacco, Firearms, and Explosives may, during nor7 mal business hours, enter the premises of any person de8 scribed in subsection (b) for the purposes of inspecting— 

9 (1) any records or information required to be 

10 maintained by such person under the provisions of 

11 law referred to in subsection (d); or 

12 (2) any cigarettes or smokeless tobacco kept or 

13 stored by such person at such premises. 

14 (b) COVERED PERSONS.—Subsection (a) applies to 

15 any person who engages in a delivery sale, and who ships, 

16 sells, distributes, or receives any quantity in excess of 

17 10,000 cigarettes, or any quantity in excess of 500 single18 unit consumer-sized cans or packages of smokeless to19 bacco, within a single month. 

20 (c) RELIEF.— 

21 (1) IN GENERAL.—The district courts of the 

22 United States shall have the authority in a civil ac23 tion under this subsection to compel inspections au24 thorized by subsection (a). 

25 (2) VIOLATIONS.—Whoever violates subsection 

26 (a) or an order issued pursuant to paragraph (1) 

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•S 1027 IS

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

2 to exceed $10,000 for each violation. 

3 (d) COVERED PROVISIONS OF LAW.—The provisions 

4 of law referred to in this subsection are— 

5 (1) the Act of October 19, 1949 (15 U.S.C. 

6 375; commonly referred to as the ‘‘Jenkins Act’’); 

7 (2) chapter 114 of title 18, United States Code; 

8 and 

9 (3) this Act. 

10 (e) DELIVERY SALE DEFINED.—In this section, the 

11 term ‘‘delivery sale’’ has the meaning given that term in 

12 2343(e) of title 18, United States Code, as amended by 

13 this Act. 

14 SEC. 6. EXCLUSIONS REGARDING INDIAN TRIBES AND 

15 TRIBAL MATTERS. 

16 (a) IN GENERAL.—Nothing in this Act or the amend17 ments made by this Act is intended nor shall be construed 

18 to affect, amend, or modify— 

19 (1) any agreements, compacts, or other inter20 governmental arrangements between any State or 

21 local government and any government of an Indian 

22 tribe (as that term is defined in section 4(e) of the 

23 Indian Self-Determination and Education Assistance 

24 Act (25 U.S.C. 450b(e)) relating to the collection of 

25 taxes on cigarettes or smokeless tobacco sold in Inmstockstill on PROD1PC66 with BILLS

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•S 1027 IS

1 dian country (as that term is defined in section 

2 1151 of title 18, United States Code); 

3 (2) any State laws that authorize or otherwise 

4 pertain to any such intergovernmental arrangements 

5 or create special rules or procedures for the collec6 tion of State, local, or tribal taxes on cigarettes or 

7 smokeless tobacco sold in Indian country; 

8 (3) any limitations under existing Federal law, 

9 including Federal common law and treaties, on 

10 State, local, and tribal tax and regulatory authority 

11 with respect to the sale, use, or distribution of ciga12 rettes and smokeless tobacco by or to Indian tribes 

13 or tribal members or in Indian country; 

14 (4) any existing Federal law, including Federal 

15 common law and treaties, regarding State jurisdic16 tion, or lack thereof, over any tribe, tribal members, 

17 or tribal reservations; and 

18 (5) any existing State or local government au19 thority to bring enforcement actions against persons 

20 located in Indian country. 

21 (b) COORDINATION OF LAW ENFORCEMENT.—Noth22 ing in this Act or the amendments made by this Act shall 

23 be construed to inhibit or otherwise affect any coordinated 

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51 

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1 dictions, including Indian tribes, through interstate com2 pact or otherwise, that— 

3 (1) provides for the administration of tobacco 

4 product laws or laws pertaining to interstate sales or 

5 other sales of tobacco products; 

6 (2) provides for the seizure of tobacco products 

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

8 or 

9 (3) establishes cooperative programs for the ad10 ministration of such laws. 

11 (c) TREATMENT OF STATE AND LOCAL GOVERN12 MENTS.—Nothing in this Act or the amendments made 

13 by this Act is intended, and shall not be construed to, au14 thorize, deputize, or commission States or local govern15 ments as instrumentalities of the United States. 

16 (d) ENFORCEMENT WITHIN INDIAN COUNTRY.— 

17 Nothing in this Act or the amendments made by this Act 

18 is intended to prohibit, limit, or restrict enforcement by 

19 the Attorney General of the United States of the provi20 sions herein within Indian country. 

21 (e) AMBIGUITY.—Any ambiguity between the lan22 guage of this section or its application and any other pro23 vision of this Act shall be resolved in favor of this section. 

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1 SEC. 7. EFFECTIVE DATE. 

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

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

4 after the date of enactment of this Act. 

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

6 on the date of enactment of this Act. 

7 SEC. 8. SEVERABILITY. 

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

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

11 the application of it to any other person or circumstance 

12 shall not be affected thereby. 

Æ 

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