II 

108TH CONGRESS 

2D SESSION S. 2642 

To amend the Internal Revenue Code of 1986 to deter the smuggling of 

tobacco products into the United States, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 13, 2004 

Mr. WYDEN introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to deter the 

smuggling of tobacco products into the United States, 

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; AMENDMENT OF 1986 CODE. 

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

5 ‘‘Smuggled Tobacco Prevention Act of 2004’’. 
2 

•S 2642 IS 

1 TITLE I—AMENDMENTS TO IN2 TERNAL REVENUE CODE OF 

3 1986 

4 SEC. 101. AMENDMENT OF 1986 CODE. 

5 Except as otherwise expressly provided, whenever in 

6 this title an amendment or repeal is expressed in terms 

7 of an amendment to, or repeal of, a section or other provi8 sion, the reference shall be considered to be made to a 

9 section or other provision of the Internal Revenue Code 

10 of 1986. 

11 SEC. 102. IMPROVED MARKING AND LABELING; EXPORT 

12 BONDS. 

13 (a) IN GENERAL.—Subsection (b) of section 5723 

14 (relating to marks, labels, and notices) is amended— 

15 (1) by striking ‘‘, if any,’’ and 

16 (2) by adding at the end the following: ‘‘Such 

17 marks, labels, and notices shall include marks and 

18 notices relating to the following: 

19 ‘‘(1) IDENTIFICATION.—Each person who is a 

20 manufacturer or importer of tobacco products shall 

21 (in accordance with regulations prescribed by the 

22 Secretary) legibly print a unique serial number on 

23 all packages of tobacco products manufactured or 

24 imported by such person for sale or distribution. 

25 Such serial number shall be designed to enable the 
3 

•S 2642 IS 

1 Secretary to identify the manufacturer of the prod2 uct (and, in the case of importation, the manufac3 turer and importer of the product), the location and 

4 date of manufacture (and, if imported, the location 

5 and date of importation), and any other information 

6 the Secretary determines necessary or appropriate 

7 for the proper administration of the chapter. The 

8 Secretary shall determine the size and location of 

9 the serial number. 

10 ‘‘(2) MARKING REQUIREMENTS FOR EX11 PORTS.—Each package of a tobacco product that is 

12 exported shall be marked for export from the United 

13 States and shall be marked as to the foreign country 

14 which is to be the final destination of such product. 

15 Such marking shall be visible and prominent and 

16 shall be in English and in the primary language of 

17 such foreign country. The Secretary shall promul18 gate regulations to determine the size and location 

19 of the mark.’’. 

20 (b) SALES ON INDIAN RESERVATIONS; PACKAGE DE21 FINED.—Section 5723 is amended by adding at the end 

22 the following new subsections: 

23 ‘‘(f) SALES ON INDIAN RESERVATIONS.—Each pack24 age of a tobacco product that is sold on an Indian reserva25 tion (as defined in section 403(9) of the Indian Child Pro-
4 

•S 2642 IS 

1 tection and Family Violence Prevention Act (25 U.S.C. 

2 3202(9)) shall be visibly and prominently labeled as such. 

3 The Secretary, in consultation with the Secretary of the 

4 Interior, shall promulgate regulations with respect to such 

5 labeling, including requirements for the size and location 

6 of the label. 

7 ‘‘(g) DEFINITION OF PACKAGE.—For purposes of 

8 this section, the term ‘package’ means the innermost 

9 sealed container visible from the outside of the individual 

10 container irrespective of the material from which such con11 tainer is made, in which a tobacco product is placed by 

12 the manufacturer and in which such tobacco product is 

13 offered for sale to a member of the general public.’’. 

14 (c) REQUIREMENTS FOR TRACKING OF TOBACCO

15 PRODUCTS.— 

16 (1) IN GENERAL.—Subchapter B of chapter 52 

17 is amended by adding at the end the following new 

18 section: 

19 ‘‘SEC. 5714. EXPORT BONDS. 

20 ‘‘(a) POSTING OF BOND.— 

21 ‘‘(1) IN GENERAL.—It shall be unlawful for any 

22 person to export any tobacco product unless such 

23 person— 

24 ‘‘(A) has posted with the Secretary a to25 bacco product bond in accordance with this sec-
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•S 2642 IS 

1 tion for such product that contains a disclosure 

2 of the country to which such product will be ex3 ported; and 

4 ‘‘(B) receives a written statement from the 

5 recipient of the tobacco products involved that 

6 such person— 

7 ‘‘(i) will not knowingly and willfully 

8 violate or cause to be violated any law or 

9 regulation of such country, the United 

10 States, any State, the District of Colum11 bia, or any possession of the United States 

12 with respect to such products; and 

13 ‘‘(ii) has never been convicted of any 

14 offense with respect to tobacco products. 

15 ‘‘(2) REGULATIONS.—The Secretary shall pro16 mulgate regulations that determine the frequency 

17 and the amount of each bond that must be posted 

18 under paragraph (1), but in no case shall such 

19 amount be less than an amount equal to the tax im20 posed under this chapter on the value of the ship21 ment of the products involved if such products were 

22 consumed within the United States. 

23 ‘‘(3) EXPORT.—For purposes of this subsection, 

24 property shall be treated as exported if it is shipped 

25 to a foreign country, Puerto Rico, the Virgin Is-
6 

•S 2642 IS 

1 lands, or a possession of the United States, or for 

2 consumption beyond the jurisdiction of the internal 

3 revenue laws of the United States. 

4 ‘‘(b) RETURN OF BOND.—The Secretary shall return 

5 a bond posted under subsection (a)— 

6 ‘‘(1) upon a determination by the Secretary 

7 (based on documentation provided by the person who 

8 posted the bond in accordance with regulations pro9 mulgated by the Secretary) that the items to which 

10 the bond applies have been received in the country 

11 of final destination as designated in the bond, or 

12 ‘‘(2) under such other circumstance as the Sec13 retary may specify.’’. 

14 (2) CLERICAL AMENDMENT.—The table of sec15 tions for such subchapter B is amended by adding 

16 at the end the following new item: 

‘‘Sec. 5714. Export bonds.’’. 

17 SEC. 103. WHOLESALERS REQUIRED TO HAVE PERMIT. 

18 Section 5712 (relating to application for permit) is 

19 amended by inserting ‘‘, wholesaler,’’ after ‘‘manufac20 turer’’. 

21 SEC. 104. CONDITIONS OF PERMIT. 

22 Subsection (a) of section 5713 (relating to issuance 

23 of permit) is amended to read as follows: 

24 ‘‘(a) ISSUANCE.— 
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1 ‘‘(1) IN GENERAL.—A person shall not engage 

2 in business as a manufacturer, wholesaler, or im3 porter of tobacco products or as an export ware4 house proprietor without a permit to engage in such 

5 business. Such permit shall be issued in such form 

6 and in such manner as the Secretary shall by regula7 tion prescribe, to every person properly qualified 

8 under sections 5711 and 5712. A new permit may 

9 be required at such other time as the Secretary shall 

10 by regulation prescribe. 

11 ‘‘(2) CONDITIONS.—The issuance of a permit 

12 under this section shall be conditioned upon the 

13 compliance with the requirements of— 

14 ‘‘(A) this chapter, 

15 ‘‘(B) the Contraband Cigarette Trafficking 

16 Act (18 U.S.C. chapter 114), 

17 ‘‘(C) the Act of October 19, 1949 (15 

18 U.S.C. chapter 10A), 

19 ‘‘(D) any regulations issued pursuant to 

20 such statutes, and 

21 ‘‘(E) any other federal laws or regulations 

22 relating to the taxation, sale, or transportation 

23 of tobacco products.’’. 
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1 SEC. 105. RECORDS TO BE MAINTAINED. 

2 Section 5741 (relating to records to be maintained) 

3 is amended— 

4 (1) by inserting ‘‘(a) IN GENERAL.—’’ before 

5 ‘‘Every manufacturer’’, 

6 (2) by inserting ‘‘every wholesaler,’’ after 

7 ‘‘every importer,’’, 

8 (3) by striking ‘‘such records’’ and inserting 

9 ‘‘records concerning the chain of custody of the to10 bacco products (including the foreign country of 

11 final destination for packages marked for export) 

12 and such other records’’, and 

13 (4) by adding at the end the following new sub14 section: 

15 ‘‘(b) RETAILERS.—Retailers shall maintain records 

16 of receipt of tobacco products, and such records shall be 

17 available to the Secretary for inspection and audit. An or18 dinary commercial record or invoice shall satisfy the re19 quirements of this subsection if such record shows the date 

20 of receipt, from whom tobacco products were received, and 

21 the quantity of tobacco products received. The preceding 

22 provisions of this subsection shall not be construed to limit 

23 or preclude other recordkeeping requirements imposed on 

24 any retailer.’’. 

25 SEC. 106. REPORTS. 

26 Section 5722 (relating to reports) is amended— 
9 

•S 2642 IS 

1 (1) by inserting ‘‘(a) IN GENERAL.—’’ before 

2 ‘‘Every manufacturer’’, and 

3 (2) by adding at the end the following new sub4 section: 

5 ‘‘(b) REPORTS BY EXPORT WAREHOUSE PROPRI6 ETORS.— 

7 ‘‘(1) IN GENERAL.—Prior to exportation of to8 bacco products from the United States, the export 

9 warehouse proprietor shall submit a report (in such 

10 manner and form as the Secretary may by regula11 tion prescribe) to enable the Secretary to identify 

12 the shipment and assure that it reaches its intended 

13 destination. 

14 ‘‘(2) AGREEMENTS WITH FOREIGN GOVERN15 MENTS.—Notwithstanding section 6103 of this title, 

16 the Secretary is authorized to enter into agreements 

17 with foreign governments to exchange or share infor18 mation contained in reports received from export 

19 warehouse proprietors of tobacco products if— 

20 ‘‘(A) the Secretary believes that such 

21 agreement will assist in— 

22 ‘‘(i) ensuring compliance with the pro23 visions of this chapter or regulations pro24 mulgated thereunder, or 
10 

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1 ‘‘(ii) preventing or detecting violations 

2 of the provisions of this chapter or regula3 tions promulgated thereunder, and 

4 ‘‘(B) the Secretary obtains assurances 

5 from such government that the information will 

6 be held in confidence and used only for the pur7 poses specified in clauses (i) and (ii) of sub8 paragraph (A). 

9 No information may be exchanged or shared with 

10 any government that has violated such assurances.’’. 

11 SEC. 107. FRAUDULENT OFFENSES. 

12 (a) IN GENERAL.—Subsection (a) of section 5762 

13 (relating to fraudulent offenses) is amended by striking 

14 paragraph (1) and redesignating paragraphs (2) through 

15 (6) as paragraphs (1) through (5), respectively. 

16 (b) OFFENSES RELATING TO DISTRIBUTION OF TO17 BACCO PRODUCTS.—Section 5762 is amended— 

18 (1) by redesignating subsection (b) as sub19 section (c), 

20 (2) in subsection (c) (as so redesignated), by in21 serting ‘‘or (b)’’ after ‘‘(a)’’, and 

22 (3) by inserting after subsection (a) the fol23 lowing new subsection: 

24 ‘‘(b) OFFENSES RELATING TO DISTRIBUTION OF TO25 BACCO PRODUCTS.—It shall be unlawful— 
11 

•S 2642 IS 

1 ‘‘(1) for any person to engage in the business 

2 as a manufacturer or importer of tobacco products 

3 or cigarette papers and tubes, or to engage in the 

4 business as a wholesaler or an export warehouse pro5 prietor, without filing the bond and obtaining the 

6 permit where required by this chapter or regulations 

7 thereunder; 

8 ‘‘(2) for a manufacturer, importer, or whole9 saler permitted under this chapter intentionally to 

10 ship, transport, deliver, or receive any tobacco prod11 ucts from or to any person other than a person per12 mitted under this chapter or a retailer, except a per13 mitted importer may receive foreign tobacco prod14 ucts from a foreign manufacturer or a foreign dis15 tributor that have not previously entered the United 

16 States; 

17 ‘‘(3) for any person (other than the original 

18 manufacturer of such tobacco products or an export 

19 warehouse proprietor authorized to receive any to20 bacco products that have previously been exported 

21 and returned to the United States) to receive any to22 bacco products that have previously been exported 

23 and returned to the United States; 

24 ‘‘(4) for any export warehouse proprietor inten25 tionally to ship, transport, sell, or deliver for sale 
12 

•S 2642 IS 

1 any tobacco products to any person other than the 

2 original manufacturer of such tobacco products, an3 other export warehouse proprietor, or a foreign pur4 chaser; 

5 ‘‘(5) for any person (other than a manufacturer 

6 or an export warehouse proprietor permitted under 

7 this chapter) intentionally to ship, transport, receive, 

8 or possess, for purposes of resale, any tobacco prod9 uct in packages marked pursuant to regulations 

10 issued under section 5723, other than for direct re11 turn to a manufacturer for repacking or for re-ex12 portation or to an export warehouse proprietor for 

13 re-exportation; 

14 ‘‘(6) for any manufacturer, importer, export 

15 warehouse proprietor, or wholesaler permitted under 

16 this chapter to make intentionally any false entry in, 

17 to fail willfully to make appropriate entry in, or to 

18 fail willfully to maintain properly any record or re19 port that such person is required to keep as required 

20 by this chapter or the regulations promulgated 

21 thereunder; 

22 ‘‘(7) for any person to alter, mutilate, destroy, 

23 obliterate, or remove any mark or label required 

24 under this chapter upon a tobacco product held for 

25 sale, except pursuant to regulations of the Secretary 
13 

•S 2642 IS 

1 authorizing relabeling for purposes of compliance 

2 with the requirements of this section or of State law; 

3 and 

4 ‘‘(8) for any person to sell at retail more than 

5 5,000 cigarettes in a single transaction or in a series 

6 of related transactions, or, in the case of other to7 bacco products, an equivalent quantity as deter8 mined by regulation. 

9 Any person violating any of the provisions of this sub10 section shall, upon conviction, be fined as provided in sec11 tion 3571 of title 18, United States Code, imprisoned for 

12 not more than 5 years, or both.’’. 

13 (c) INTENTIONALLY DEFINED.—Section 5762 is 

14 amended by adding at the end the following: 

15 ‘‘(d) DEFINITION OF INTENTIONALLY.—For pur16 poses of this section and section 5761, the term ‘inten17 tionally’ means doing an act, or omitting to do an act, 

18 deliberately, and not due to accident, inadvertence, or mis19 take, regardless of whether the person knew that the act 

20 or omission constituted an offense.’’. 

21 SEC. 108. CIVIL PENALTIES. 

22 Subsection (a) of section 5761 (relating to civil pen23 alties) is amended— 

24 (1) by striking ‘‘willfully’’ and inserting ‘‘inten25 tionally’’, and 
14 

•S 2642 IS 

1 (2) by striking ‘‘$1,000’’ and inserting 

2 ‘‘$10,000’’. 

3 SEC. 109. DEFINITIONS. 

4 (a) EXPORT WAREHOUSE PROPRIETOR.—Subsection 

5 (i) of section 5702 (relating to definition of export ware6 house proprietor) is amended by inserting before the pe7 riod the following: ‘‘or any person engaged in the business 

8 of exporting tobacco products from the United States for 

9 purposes of sale or distribution. Any duty free store that 

10 sells, offers for sale, or otherwise distributes to any person 

11 in any single transaction more than 30 packages of ciga12 rettes, or its equivalent for other tobacco products as the 

13 Secretary shall by regulation prescribe, shall be deemed 

14 an export warehouse proprietor under this chapter’’. 

15 (b) RETAILER; WHOLESALER.—Section 5702 is 

16 amended by adding at the end the following: 

17 ‘‘(p) RETAILER.—The term ‘retailer’ means any deal18 er who sells, or offers for sale, any tobacco product at re19 tail. The term ‘retailer’ includes any duty-free store that 

20 sells, offers for sale, or otherwise distributes at retail in 

21 any single transaction 30 or fewer packages of cigarettes, 

22 or its equivalent for other tobacco products. 

23 ‘‘(q) WHOLESALER.—The term ‘wholesaler’ means 

24 any person engaged in the business of purchasing tobacco 

25 products for resale at wholesale, or any person acting as 
15 

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1 an agent or broker for any person engaged in the business 

2 of purchasing tobacco products for resale at wholesale.’’. 

3 SEC. 110. EFFECTIVE DATE. 

4 The amendments made by this title shall take effect 

5 on January 1, 2005. 

6 TITLE II—AMENDMENTS TO THE 

7 CONTRABAND CIGARETTE 

8 TRAFFICKING ACT 

9 SEC. 201. AMENDMENTS TO THE CONTRABAND CIGARETTE 

10 TRAFFICKING ACT. 

11 (a) EXPANSION OF ACT TO COVER OTHER TOBACCO

12 PRODUCTS.— 

13 (1) Paragraphs (1) through (2) of section 2341 

14 of title 18, United States Code, are amended to read 

15 as follows: 

16 ‘‘(1) the term ‘tobacco product’ has the mean17 ing given to such term by section 5702 of the Inter18 nal Revenue Code of 1986; 

19 ‘‘(2) the term ‘contraband tobacco product’ 

20 means any tobacco product if— 

21 ‘‘(A)(i) in the case of cigarettes, such ciga22 rettes are in a quantity in excess of 2,000 ciga23 rettes; or 

24 ‘‘(ii) in the case of a tobacco product other 

25 than a cigarette, such product is in a quantity 
16 

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1 in excess of the equivalent of 2,000 cigarettes 

2 as determined under rules made by the Attor3 ney General; 

4 ‘‘(B)(i) if the State in which such tobacco 

5 product is found requires a stamp, impression, 

6 or other indication to be placed on packages or 

7 other containers of product to evidence payment 

8 of tobacco taxes, such tobacco product bears no 

9 evidence of such payment; or 

10 ‘‘(ii) if such State has no such require11 ment, applicable tobacco taxes are found to be 

12 not paid; and 

13 ‘‘(C) such tobacco product is in the posses14 sion of any person other than— 

15 ‘‘(i) a person holding a permit issued 

16 pursuant to chapter 52 of the Internal 

17 Revenue Code of 1986 as a manufacturer 

18 or importer of tobacco products or as an 

19 export warehouse proprietor, or a person 

20 operating a customs bonded warehouse 

21 pursuant to section 311 or 555 of the Tar22 iff Act of 1930 (19 U.S.C. 1311 or 1555) 

23 or an agent of such person; 

24 ‘‘(ii) a common or contract carrier 

25 transporting the tobacco product involved 
17 

•S 2642 IS 

1 under a proper bill of lading or freight bill 

2 which states the quantity, source, and des3 tination of such product; 

4 ‘‘(iii) a person— 

5 ‘‘(I) who is licensed or otherwise 

6 authorized by the State where the to7 bacco product is found to account for 

8 and pay tobacco taxes imposed by 

9 such State; and 

10 ‘‘(II) who has complied with the 

11 accounting and payment requirements 

12 relating to such license or authoriza13 tion with respect to the tobacco prod14 uct involved; or 

15 ‘‘(iv) an officer, employee, or other 

16 agent of the United States or a State, or 

17 any department, agency, or instrumentality 

18 of the United States or a State (including 

19 any political subdivision of a State) having 

20 possession of such tobacco product in con21 nection with the performance of official du22 ties;’’. 

23 (2) Section 2345 of title 18, United States 

24 Code, is amended— 
18 

•S 2642 IS 

1 (A) by striking ‘‘cigarette tax laws’’ each 

2 place it appears and inserting ‘‘tobacco tax 

3 laws’’, and 

4 (B) by striking ‘‘cigarettes’’ and inserting 

5 ‘‘tobacco products’’. 

6 (b) UNLAWFUL ACTS.—Section 2342 of title 18, 

7 United States Code, is amended to read as follows: 

8 ‘‘§ 2342. Unlawful acts 

9 ‘‘(a) It shall be unlawful for any person knowingly 

10 to ship, transport, receive, possess, sell, distribute, or pur11 chase contraband tobacco products. 

12 ‘‘(b)(1) It shall be unlawful for any person know13 ingly— 

14 ‘‘(A) to make any false statement or represen15 tation with respect to the information required by 

16 this chapter to be kept in the records or reports of 

17 any person who ships, sells, or distributes (in a sin18 gle transaction or in a series of related transactions) 

19 any quantity of tobacco product in excess of the 

20 quantity specified in or pursuant to section 

21 2341(2)(A) with respect to such product, or 

22 ‘‘(B) to fail to maintain records or reports, 

23 alter or obliterate required markings, or interfere 

24 with any inspection, required under this chapter, 

25 with respect to such quantity of tobacco product. 
19 

•S 2642 IS 

1 ‘‘(c) It shall be unlawful for any person knowingly 

2 to transport tobacco products under a false bill of lading 

3 or without any bill of lading.’’. 

4 (c) CONFORMING AMENDMENTS RELATING TO REC5 ORDKEEPING.— 

6 (1) Subsections (a) and (b) of section 2343 of 

7 title 18, United States Code, are each amended by 

8 striking ‘‘any quantity of cigarettes in excess of 

9 60,000 in a single transaction’’ and inserting ‘‘(in a 

10 single transaction or in a series of related trans11 actions) any quantity of tobacco product in excess of 

12 the quantity specified in or pursuant to section 

13 2341(2)(A) with respect to such product’’. 

14 (d) PENALTIES.—Section 2344 of title 18, United 

15 States Code, is amended— 

16 (1) in subsection (b), by inserting ‘‘or (c)’’ after 

17 ‘‘section 2342(b)’’; and 

18 (2) by striking subsection (c) and inserting the 

19 following new subsection: 

20 ‘‘(c) Any contraband tobacco products involved in any 

21 violation of this chapter shall be subject to seizure and 

22 forfeiture, and all provisions of section 9703(o) of title 31, 

23 United States Code, shall, so far as applicable, extend to 

24 seizures and forfeitures under this chapter.’’. 

25 (e) JENKINS ACT AMENDMENTS.— 
20 

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1 (1) Section 4 of the Act of October 19, 1949 

2 (15 U.S.C. 378) is amended by adding at the end 

3 the following: ‘‘A State tobacco tax authority may 

4 commence a civil action to obtain appropriate relief 

5 with respect to a violation of this Act.’’. 

6 (2) Paragraph (2) of section 1 of such Act is 

7 amended to read as follows: 

8 ‘‘(2) The term ‘tobacco product’ has the mean9 ing given to such term by section 5702 of the Inter10 nal Revenue Code of 1986.’’. 

11 (3) Such Act is further amended by striking 

12 ‘‘cigarette’’ and ‘‘cigarettes’’ each place either ap13 pears and inserting ‘‘tobacco product’’ and ‘‘tobacco 

14 products’’ respectively. 

15 (f) NON-PREEMPTION.—Nothing in this title or the 

16 amendments made by this title shall be construed to pro17 hibit an authorized State official from proceeding in State 

18 court on the basis of an alleged violation of State law. 

19 TITLE III—WHISTLEBLOWER 

20 PROTECTION PROVISIONS 

21 SEC. 301. WHISTLEBLOWER PROTECTION. 

22 (a) IN GENERAL.—Chapter 73 of title 18, United 

23 States Code, is amended by inserting after section 1514 

24 the following: 
21 

•S 2642 IS 

1 ‘‘§ 1514B. Civil action to protect against retaliation in 

2 contraband tobacco cases 

3 ‘‘(a) WHISTLEBLOWER PROTECTION FOR CONTRA4 BAND TOBACCO.—No person may discharge, demote, sus5 pend, threaten, harass, or in any other manner discrimi6 nate against an employee in the terms and conditions of 

7 employment because of any lawful act done by the em8 ployee— 

9 ‘‘(1) to provide information, cause information 

10 to be provided, or otherwise assist in an investiga11 tion regarding any conduct which the employee rea12 sonably believes constitutes a violation of section 

13 2342 or any other provision of Federal law relating 

14 to contraband tobacco, when the information or as15 sistance is provided to or the investigation is con16 ducted by— 

17 ‘‘(A) a Federal regulatory or law enforce18 ment agency; 

19 ‘‘(B) any Member of Congress or any com20 mittee of Congress; or 

21 ‘‘(C) a person with supervisory authority 

22 over the employee (or such other person work23 ing for the employer who has the authority to 

24 investigate, discover, or terminate misconduct); 

25 or 
22 

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1 ‘‘(2) to file, cause to be filed, testify, participate 

2 in, or otherwise assist in a proceeding filed or about 

3 to be filed (with any knowledge of the employer) re4 lating to an alleged violation of section 2342, or any 

5 provision of Federal law relating to contraband to6 bacco. 

7 ‘‘(b) ENFORCEMENT ACTION.— 

8 ‘‘(1) IN GENERAL.—A person who alleges dis9 charge or other discrimination by any person in vio10 lation of subsection (a) may seek relief under sub11 section (c), by— 

12 ‘‘(A) filing a complaint with the Secretary 

13 of Labor; or 

14 ‘‘(B) if the Secretary has not issued a final 

15 decision within 180 days of the filing of the 

16 complaint and there is no showing that such 

17 delay is due to the bad faith of the claimant, 

18 bringing an action at law or equity for de novo 

19 review in the appropriate district court of the 

20 United States, which shall have jurisdiction 

21 over such an action without regard to the 

22 amount in controversy. 

23 ‘‘(2) PROCEDURE.— 

24 ‘‘(A) IN GENERAL.—An action under para25 graph (1)(A) shall be governed under the rules 
23 

•S 2642 IS 

1 and procedures set forth in section 42121(b) of 

2 title 49, United States Code. 

3 ‘‘(B) EXCEPTION.—Notification made 

4 under section 42121(b)(1) of title 49, United 

5 States Code, shall be made to the person named 

6 in the complaint and to the employer. 

7 ‘‘(C) BURDENS OF PROOF.—An action 

8 brought under paragraph (1)(B) shall be gov9 erned by the legal burdens of proof set forth in 

10 section 42121(b) of title 49, United States 

11 Code. 

12 ‘‘(D) STATUTE OF LIMITATIONS.—An ac13 tion under paragraph (1) shall be commenced 

14 not later than 90 days after the date on which 

15 the violation occurs. 

16 ‘‘(c) REMEDIES.— 

17 ‘‘(1) IN GENERAL.—An employee prevailing in 

18 any action under subsection (b)(1) shall be entitled 

19 to all relief necessary to make the employee whole. 

20 ‘‘(2) COMPENSATORY DAMAGES.—Relief for any 

21 action under paragraph (1) shall include— 

22 ‘‘(A) reinstatement with the same seniority 

23 status that the employee would have had, but 

24 for the discrimination; 
24 

•S 2642 IS 

1 ‘‘(B) the amount of back pay, with inter2 est; and 

3 ‘‘(C) compensation for any special damages 

4 sustained as a result of the discrimination, in5 cluding litigation costs, expert witness fees, and 

6 reasonable attorney fees. 

7 ‘‘(d) RIGHTS RETAINED BY EMPLOYEE.—Nothing in 

8 this section shall be deemed to diminish the rights, privi9 leges, or remedies of any employee under any Federal or 

10 State law, or under any collective bargaining agreement.’’. 

11 (b) CLERICAL AMENDMENT.—The table of sections 

12 at the beginning of chapter 73 of title 18, United States 

13 Code, is amended by inserting after the item relating to 

14 section 1514 the following new item: 

‘‘1514B. Civil action to protect against retaliation in contraband tobacco 

cases.’’. 

Æ